Document:

Exhibit 10.14

AMENDMENT TO AMENDED AND
RESTATED AGREEMENT

OF DECEMBER 31,
1998

THIS AMENDMENT TO AMENDED AND RESTATED AGREEMENT OF
DECEMBER 31, 1998 (“Amendment”) is effective as of January 29, 1999 by
and between QVC, Inc., a Delaware corporation (“QVC”) and Dolphin
Acquisition Corp., a California corporation (“Company”).

RECITALS

WHEREAS, QVC and Company are parties to an Amended and
Restated Agreement dated as of December 31, 1998 (“Agreement”);

WHEREAS, Section 6 of the Agreement provides that the
Company shall issue warrants to QVC or its affiliates to purchase shares of the
Company’s Common Stock (“Warrants”), said Warrants to be issued in
accordance with and subject to the terms in Exhibit C of the Agreement;

WHEREAS, QVC and the Company desire to amend the
Agreement pursuant to the terms of this Amendment to extend the date by which
certain of the Warrants must be issued.

NOW THEREFORE, for good and valuable consideration,
the receipt of which is hereby acknowledged, the parties agree as follows:

AGREEMENT

1.         Definitions.
Terms not defined herein shall have the meaning set forth in the Agreement.

2.         Deadline for Issuance of
the Signing Warrant. QVC and the Company hereby agree that the first
sentence of Paragraph 1 of Exhibit C of the Agreement shall be amended in full
as follows:

(1) Prior to February 10, 1999, the Company shall
issue a Warrant (the “Signing Warrant”) to QVC to purchase 70,000 shares of
Common Stock of the Company at $6.55 per share.

3          Miscellaneous.
Except as specifically set forth herein, the terms of the Agreement shall
remain unmodified. This Amendment shall be governed by and construed accordance
with the internal substantive and procedural laws of the Commonwealth of
Pennsylvania without regard to conflict of laws principles. This Amendment may
be executed in counterpart, each of which shall be deemed an original, but
together shall constitute one and the same instrument.

[THE REST OF THIS PAGE
INTENTIONALLY LEFT BLANK]

 

IN WITNESS WHEREOF, the parties hereto have executed
this Amendment on the date first above written.

 

	
  DOLPHIN ACQUISITION CORP.

  	
   

  	
  QVC, INC.

  
	
  d/b/a BARE ESCENTUALS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John Hansen

  	
   

  	
  By:

  	
  /s/

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  John Hansen

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Chairman

  	
   

  	
  Title:Exhibit 10.15

SECOND AMENDMENT TO
AMENDED AND RESTATED AGREEMENT 

OF DECEMBER 31, 1998

THIS SECOND AMENDMENT TO AMENDED AND RESTATED
AGREEMENT OF DECEMBER 31,1998 (“Amendment”) is effective as of FEBRUARY
9,1999 by and between QVC, Inc., a Delaware corporation (“QVC”) and
Dolphin Acquisition Corp., a California corporation (“Company”).

RECITALS

WHEREAS, QVC and Company are parties to an Amended and
Restated Agreement dated as of December 31, 1998 as amended by the Amendment
dated as of January 29, 1999 by and between QVC and the Company (“Agreement”);

WHEREAS, Section 6 of the Agreement provides that the
Company shall issue warrants to QVC or its affiliates to purchase shares of the
Company’s Common Stock (“Warrants”), said Warrants to be issued in
accordance with and subject to the terms in Exhibit C of the Agreement;

WHEREAS, QVC and the Company desire to amend the
Agreement pursuant to the terms of this Amendment to, among other things,
extend the date by which the Signing Warrant must be issued and to modify
certain other terms of the Warrants;

NOW THEREFORE, for good and valuable consideration,
the receipt of which is hereby acknowledged, the parties agree as follows:

AGREEMENT

1.         Definitions. Terms
not defined herein shall have the meaning set forth in the Agreement.

2.         Publicity.
QVC and the Company hereby agree that Section 15 of the Agreement shall be
amended and restated to read as follows:

Except for incidental non-derogatory remarks
necessitated by the services provided hereunder, the Company shall not issue
any publicity or press release regarding its contractual relations with QVC
pursuant to the terms of this Agreement, the Signing Warrant (as herein
defined) or the Performance Warrants (as herein defined) or otherwise make any
oral or written reference regarding its activities hereunder, including,
without limitation, the issuance of the Signing Warrant and the Performance
Warrants, without obtaining QVC’s prior written consent and approval of the
contents thereof.

3.         Warrants.
QVC and the Company hereby agree that Section 6 of the Agreement shall be
amended and restated to
read as follows:

 

1

 

The Company will issue to QVC or its affiliates,
warrant to purchase shares of the Company’s Series A Preferred Stock in
accordance with and subject to the terms attached hereto as Exhibit “C”.

4.         Deadline
for Issuance of the Signing Warrant. QVC and the Company hereby agree that
the first sentence of Paragraph 1 of Exhibit C of the Agreement shall be
amended and restated to read as follows:

Prior to the close of business February 12, 1999, the
Company shall issue a Warrant (the “Signing Warrant”) to QVC to purchase 70,000
shares of Series A Preferred Stock of the Company at $6.55 per share.

5.         Time
Period for Issuance of and Form of Performance Warrant. QVC and the Company
hereby agree that Paragraph 2 of Exhibit C of the Agreement shall be amended
and restated to read as follows:

The Company shall issue additional Warrants (the
“Performance Warrants”) to purchase the following number of shares of Series A
Preferred Stock upon achievement of cumulative sales during the Term from the
Company to QVC of the following amounts: 23,000 shares if sales to QVC reach $6
million, 23,000 shares if sales to QVC reach $12 million and 23,000 shares if
sales to QVC reach $18 million. The exercise price of the Performance Warrants
shall equal the market value of the Series A Preferred Stock on the date the
foregoing sales targets are achieved, as determined in good faith by the
Company’s Board of Directors. QVC shall notify the Company when each of the
foregoing sales targets is achieved. The Company shall issue each Performance
Warrant within thirty (30) days following the Company’s receipt of such
notification from QVC. Each Performance Warrant shall be issued in a form
substantially similar to the form of the Signing Warrant. Any dispute under
this Paragraph 2 as to the determination by the Company’s Board of Directors of
the market value of the Series A Preferred Stock shall be submitted to, and
determined by, binding
arbitration as set forth in Section 1(h) of the Agreement.

6.         Miscellaneous.
Except as specifically set forth herein, the terms of the Agreement shall
remain unmodified. This Amendment shall be governed by and construed accordance
with the internal substantive and procedural laws of the Commonwealth of
Pennsylvania without regard to conflict of laws principles. This Amendment may
be executed in counterpart, each of which shall be deemed an original, but
together shall constitute one and the same instrument.

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2

 

IN WITNESS WHEREOF, the parties hereto have executed
this Amendment on the date first above written.

 

	
  DOLPHIN ACQUISITION CORP.

  d/b/a BARE ESCENTUALS

  	
   

  	
  QVC, INC.

  	
   

  
	
  By:

  	
  /s/ 

  	
   

  	
  By:

  	
  /s/

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 

3EXHIBIT 10.16

 

***                           CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT UNDER 17 C.F.R. SECTIONS 200.80(B)(4), 200.83 AND
230.406.

 

LICENSE AND SUPPLY AGREEMENT

LICENSE AND SUPPLY AGREEMENT (the “Agreement”) effective the 12th
day of September, 2005 (the “Effective Date”) by and between BioKool, LLC, [an
Arizona] limited liability company (hereinafter “BioKool”) and Bare Escentuals,
Inc., a California corporation (hereinafter “Licensee”).

RECITALS

BioKool desires to grant to Licensee and Licensee desires to acquire
from BioKool an exclusive license to commercialize the Licensed Ingredients as
part of Licensee consumer product compositions in the Field, on the terms and
conditions herein.

NOW, THEREFORE, for and in consideration of the covenants, conditions,
and undertakings hereinafter set forth, it is agreed by and between the parties
as follows:

1.             DEFINITIONS

The terms defined in this Article 1 shall, for all purposes of this
Agreement, have the following meaning:

“BioKool Mineral Technology” shall mean BioKool’s
proprietary mineral technology, as more fully described in Exhibit A attached
hereto.

“Color Cosmetics Products” shall consist of cosmetics
products containing pigment and dyes that are used for beautification
enhancement purposes.

“Confidential Information” means any and
all technical and non-technical information one party provides the other
hereunder that is either indicated to be proprietary or confidential
information of the disclosing party or which by its nature the receiving party
would reasonably deem such information to be confidential or proprietary
regardless of marking, including trade secret, know-how and proprietary
information, designs, schematics, techniques, technical documentation, plans or
any other information relating to any research project, work in process, future
development, scientific, engineering, manufacturing, marketing or business plan
or financial or personnel matter relating to the disclosing party, its present
or future products, sales, suppliers, customers, employees, investors or
business, whether in written, oral, graphic or electronic form.

“Cosmetic Skin Care Products” shall consist of cosmetic
products intended for skin maintenance and enhancement of skin to provide a
youthful appearance.

“Cosmetic” shall have the meaning set forth in the Federal
Food, Drug and Cosmetic Act, 21 U.S.C. ‘321(i), on the Effective Date hereof.

 

 

“Field” shall mean Personal Care
Products, Color Cosmetics Products, OTC Color Cosmetics Products, Cosmetic Skin
Care Products and OTC Skin Care Treatment Products.

“Intellectual
Property Rights” shall mean all patent rights, copyright rights,
moral rights, trade secret rights, and all other intellectual and industrial
property rights, trade marks and service marks, whether or not registered or
perfected, anywhere in the world, and all registrations, initial applications,
renewals, extensions, continuations, divisions or reissues for any of the
foregoing.

“Know-How” shall mean all
inventions, discoveries, trade secrets, improvements, and information, whether
or not patented or patentable, that have been developed by BioKool, which relate
to or are used in conjunction with the development, manufacture, or use of the
Licensed Ingredients.

“Licensed Ingredients” shall mean the ingredients,
based on BioKool Mineral Technology, listed in Exhibit A.

“Net Sales” shall mean amounts actually received by Licensee
from the sales of  Products, less the
following deductions: (i) rebates, and any trade, cash and quantity discounts
offered by Licensee; (ii) taxes on sales (such as sales or use taxes) to the
extent added to the sales price; (iii) value added taxes when included as part
of the sales price and not refunded to the payor; (iv) freight, insurance, and
other transportation charges; and (v) amounts repaid or credited by reason of
rejection, defects, or returns or because of retroactive price reductions.

“OTC Color Cosmetics Products” shall consist of OTC
products containing pigments and dyes intended for beautification enhancement,
and which may also be intended to protect or promote healthy skin conditions or
treat skin disorders.

“OTC Skin Care Treatment Products” shall mean OTC products
intended to protect and promote healthy skin conditions or treat skin
disorders.

“Over-the-Counter Products” or “OTC
Products” shall mean compositions that are sold Over-the-Counter (“OTC”)
and regulated by the Food & Drug Administration and that contain the
Licensed Ingredients.

“Patent Rights” shall mean any
US or foreign patent application or issued patent relating to the Licensed
Ingredients or to methods of making or using such Licensed Ingredients that are
filed prior to or during the term of this Agreement, including any addition,
continuation, continuation-in-part, or division thereof or any substitute
application thereof, any reissue or extension, of any such patent. All patent
and patent applications currently within this definition and applicable to this
agreement are set forth on Exhibit B hereto, which Exhibit shall be amended as
necessary to reflect changes or additions to the Patent Rights.

“Personal Care Products” shall consist of all
personal care and dermatological, 
Cosmetic and OTC, pigmented and non-pigmented consumer products for
topical applications or oral applications promoted  for personal hygiene, treatment and beauty
enhancement purposes or for treatment of skin disorders, bath and shower
products, body 

 

2

 

care, nail care and hair care products, and soaps,
lotions, perfumes and similar products, but excluding oral consumable health
and sport products related to food, beverages, and supplements for human or
veterinary consumption.

“Product” shall mean a composition that incorporates Licensed
Ingredients and that is made into finished goods for commercial sale to
consumers.

“Purchase
Order” shall mean a written purchase order that is delivered to
BioKool in accordance with Section 3, specifying the quantity of Licensed
Ingredients required, the delivery date requested and the delivery location
requested by Licensee.

“Subcontractor”
shall mean a third-party entity providing services in connection with the
manufacturing of Product for Licensee.

“Territory” shall mean the entire world.

“Totala” is a registered trademarked
owned by BioKool.

2.             LICENSE
GRANT

2.1           License
Grants.  Subject to the terms
and conditions of this Agreement, BioKool hereby grants Licensee a worldwide,
exclusive (even as to BioKool), right and license under and to the BioKool
Mineral Technology to make, have made, use, have used, import, offer to sell
and sell through multiple tiers of distribution Licensed Ingredients and
Products, and to make modifications and improvements thereto and otherwise
exploit and exercise such rights as Licensee may choose in its sole discretion;
provided that such license is limited to the Field.

2.2           BioKool
Ownership.  As between the
parties and except as set forth below, BioKool shall own all right, title and
interest in and to all BioKool Mineral Technology relating to License
Ingredients, and any improvements thereto created by BioKool.  Any such improvements will be licensed
exclusively to Licensee pursuant to Section 2.1 above.

2.3           Licensee
Ownership.  As between the
parties and except as set forth below, Licensee shall own all Intellectual
Property Rights relating to any inventions, whether or not patentable, or other
technology, materials, formulae, processes, ingredients, clinical test results,
data and products made, conceived, or reduced to practice by or for Licensee,
or jointly by BioKool and Licensee, related to or in connection with the
Licensed Ingredients, the BioKool Mineral Technology, or related to or in
connection with any Products developed using Licensed Ingredients during the
term of this Agreement.

2.4           Delivery.  Upon request from Licensee, BioKool agrees to
provide to Licensee as promptly as practicable documentation regarding the
BioKool Mineral Technology and the Licensed Ingredients reasonably sufficient
to enable Licensee to understand the properties and specifications of the
BioKool Mineral Technology and the Licensed Ingredients.  Upon request from Licensee, BioKool agrees to
provide free of charge with any training Licensee requires to understand the
BioKool Mineral Technology.

 

3

3.             PURCHASE
ORDER AND DELIVERY PROCESS

3.1           Purchase
Orders. Licensee may issue Purchase Orders from time to time to
BioKool to purchase Licensed Ingredients.  
Licensee shall have no obligation to purchase any minimum unit quantity
or dollar amount of Licensed Ingredients under this Agreement.  Licensee and BioKool agree that a Purchase
Order sent to BioKool by confirmed facsimile or electronic transmission shall
constitute a writing for all legal purposes. 
BioKool shall not sell any Licensed Ingredients to any third party, or
otherwise commercialize the Licensed Ingredients in any manner, for any
application in the Field or for any application substantially related to the
Field that could reasonably be confused with or used as an application within
the Field, without the prior written consent of Licensee.

3.2           Acknowledgment
of Licensee Purchase Order. 
Within *** days of BioKool’s receipt of a Purchase Order, BioKool shall
expressly acknowledge receipt and acceptance of the Purchase Order and its
requirements by signing the Purchase Order within the space provided thereon
and returning it to BioKool via return mail or confirmed facsimile, or for
e-mail transmission by sending an electronic acknowledgement of receipt and
acceptance.  BioKool may not reject any
Purchase Order issued in accordance with the Agreement.  The delivery lead times for Licensed
Ingredients to be delivered under any Purchase Order will not exceed ***
days.  Should written acceptance not be
received by Licensee for any Purchase Order within the time period provided
above, BioKool shall be deemed to have accepted such Purchase Order and upon
such acceptance, the quantities and delivery dates as set forth in the Purchase
Order shall be strictly adhered to.

3.3           Revision of
Purchase Orders. Licensee shall have the right, without penalty, to
increase the volume or change the location of delivery of any Purchase Order by
providing written notice to BioKool at least *** days prior to BioKool’s
scheduled shipment date.  BioKool shall
use commercially reasonable efforts to accommodate Licensee’s revised Purchase
Order in accordance with the lead times referenced above.

3.4           Cancellation
of Purchase Orders. Licensee may, in its sole discretion, cancel all
or any part of any Purchase Order by providing written notice to BioKool at
least *** days prior to BioKool’s scheduled shipment date without incurring any
cancellation charges.

3.5           Conflicting
Terms and Conditions. The terms and conditions in this Agreement
shall supersede and replace all preprinted form terms and conditions set forth
on any purchase order acknowledgment. Neither party is obligated to notify the
other party that the additional or conflicting terms and conditions do not
apply and all such additional or conflicting terms and conditions are hereby
rejected.

3.6           Supply
Failure.  Failure by BioKool
to supply Licensee with requirements in Purchase Orders that comply with this
Agreement shall be deemed to be a material breach of this Agreement, allowing
Licensee to terminate this Agreement per Section 8, or obtain an alternate
source of supply of Licensed Ingredients (with incremental costs considered
damages from BioKool’s breach).

 

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4

3.7           Delivery. Delivery shall be DDP (Incoterms 2000) Licensee’s requested
delivery point. Title and risk of loss for the Licensed Ingredients will
transfer to Licensee upon shipment from the designated delivery point.

3.8           Changes to Licensed Ingredients.  If Licensee requests changes to the Licensed
Ingredients, the parties will discuss in good faith and separately agree to any
changes that Licensee may require to the Licensed Ingredients.

4.             DEVELOPMENT
AND CLINICAL TESTING

4.1           Development.
Licensee will use commercially reasonable efforts to incorporate the Licensed
Ingredients into Products.

4.2           Clinical
Testing. Upon completion of Licensee’s initial development work to
incorporate the Licensed Ingredients into Products, Licensee will clinically
test the initial Product in accordance with a clinical test schedule to be
determined by Licensee to determine whether the Product performs in accordance
with the clinical results specifications set forth in Exhibit C.  Such clinical testing will be conducted in
accordance with the protocols and procedures and at the locations set forth in
Exhibit C, or as otherwise agreed to among Licensee, its subcontractor RF
Technology Consultants Inc. (“RF Technology”), and BioKool in writing.

4.3           RF
Technology.  The parties
acknowledge and agree that Licensee intends to engage RF Technology to
formulate products and to support Licensee’s clinical tests pursuant to a
separate written agreement between Licensee and RF Technology.  Notwithstanding the foregoing, nothing herein
shall prevent Licensee from engaging one or more other parties to formulate,
supply and test Products.

4.4           Review and
Acceptance.  Licensee will not
distribute or sell the first Product incorporating a Licensed Ingredient unless
and until the parties agree that the Product incorporating the Licensed
Ingredients performs according to the clinical results specifications set forth
in Exhibit C and meets agreed upon marketability expectations.  Neither party may unreasonably condition,
delay or withhold consent.  For future
Products, BioKool’s consent will not be required.

4.5           Failure of Clinical Test. 
In the event that the results of clinical tests fail to satisfy the
specification requirements set forth in Exhibit C, Licensee, at its sole
option, may pay BioKool the sum of *** and both parties shall thereupon
renegotiate in good faith the terms of this Agreement.  In the event that new terms to this Agreement
cannot be reached, either party may terminate this Agreement in accordance with
Section 8.  If Licensee, in its sole
discretion, waives its right to renegotiate the terms of this agreement, the
Licensee’s right of renegotiation will be deemed expired.

4.6           Clinical Testing Costs.  Licensee shall bear all its own costs related
to the clinical testing and any other outside testing and market research costs
of Products incorporating the Licensed Ingredients.

5.             PAYMENTS

5.1           Licensed Ingredients Fees.  Licensee agrees to pay BioKool the prices for
the Licensed Ingredients set forth in Exhibit A.  All such payments shall be due 

 

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within thirty (30) days
following receipt of valid invoice. 
BioKool agrees to invoice Licensee upon delivery.

5.2           Commencement
Payment.  Upon the completion
of a successful clinical test, as defined in Section 4.2 and Exhibit C,
Licensee shall pay to BioKool, within *** days following the completion date of
the clinical test, the sum of ***.

5.3           Milestone Payments ***.  Subject to the terms and conditions of this
Agreement, Licensee shall pay BioKool the amount set forth in the table below
under the heading “Payment Amount” within *** days following the achievement of
the milestone listed next to such amount under the heading “Product Milestone.”  These milestone payments shall be considered
an advance on excess royalties (i.e., royalties payable over and above any
minimum royalty payments) for such products, as specified in Section 6.1:

	
  Product Milestone

  	
   

  	
  Payment Amount (U.S. Dollars)

  
	
   

  	
   

  	
   

  

 

***

5.4           *** Option.  Licensee shall have the sole right to ***
within *** days after *** of the first commercial launch of a Product under
this Agreement by paying a fee of *** to BioKool.  If the parties, negotiating in good faith,
cannot reach an agreement, Licensee shall have the right to terminate this
Agreement per Section 8.  If Licensee, at
its sole discretion, decides not to exercise this right, Licensee will pay to
BioKool the sum of ***, and Licensee’s right of *** will be deemed expired.

6.             ROYALTIES

6.1           Royalty
Rate. Licensee shall pay to BioKool a royalty on annual Net Sales by
Licensee of Products incorporating the Licensed Ingredient, on a
Product-by-Product basis, equal to *** of such Net Sales.  Licensee shall pay such royalties within
thirty (30) days after the end of each calendar quarter beginning with the
quarter in which Licensee first ships for commercial sale a Product
incorporating Licensed Ingredients.

6.2           Annual
Minimum Royalties.  Licensee
agrees to pay at least the minimum royalties for each contract year as
specified in Exhibit D.  If royalties paid
in a given year do not achieve the minimum royalty amount for such contract
year, then Licensee’s payments for the fourth quarter of such contract year
will include any extra amounts necessary to fulfill its minimum annual royalty
commitment.

6.3           Records;
Reports. Licensee will keep proper and
accurate records of all sales for which royalty payments are applicable
pursuant to this Section 6. 
Licensee shall preserve such records for at least two (2) years after
the applicable sale.  In addition, with
each payment of royalties, Licensee shall provide BioKool a written report
detailing the basis for the payment.

6.4           Audit and
Inspection.  BioKool shall have the right during the term
of this Agreement and within two (2) years thereafter, to appoint an independent
auditor reasonably acceptable to Licensee to inspect the books and records
maintained by Licensee pursuant to Section 6.3 upon reasonable prior written
notice during normal business hours at Licensee’s offices.  Licensee agrees to provide such auditor with
such 

 

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6

assistance, co-operation and further information as
such auditor may reasonably require for such purpose.  If such inspection reveals that Licensee’s
payments were less than the amount which should have been paid, then Licensee
shall pay to BioKool any sums shown to be due. 
If the underpayment was in excess of *** of the total sums accrued due
during the period for which such inspection and audit was made, the Licensee
shall also pay to BioKool the reasonable costs of such audit and inspection
upon receipt of an appropriate invoice justifying the costs.

7.             MARKETING

7.1           Press Releases.
The parties agree to issue a mutually acceptable joint press release announcing
this Agreement and the decision by Licensee to incorporate the BioKool Mineral
Technology in the Products.

7.2           Joint
Marketing.  The parties may
elect to cooperate in connection with proposals for education, promotion, joint
marketing, and the preparation of joint marketing materials and collateral
regarding Licensee’s incorporation of the BioKool Mineral Technology into
Products (provided that Licensee shall be by this clause in no way restricted
from carrying out its own such activities). 
All costs of such joint activities will be agreed between the parties,
but in the absence of specific agreement, each party shall bear its own costs.

7.3           Marking. If Licensee chooses to use the “Totala®”
trademark,  Licensee agrees to comply
with the marking requirements are further specified in Exhibit E.

7.4           Trademark
License. Subject to the terms and conditions of this Agreement,
BioKool hereby grants to Licensee a non-transferable, royalty-free license to
use BioKool’s trademarks, trade names and logos listed in Exhibit F (the “Marks”)
for marketing the Products if Licensee elects. Licensee agrees to state in
appropriate places on all materials using the Marks that the Marks are trademarks
of BioKool and to include the appropriate trademark symbols. BioKool grants no
other rights than expressly granted hereunder, and Licensee acknowledges
BioKool’s exclusive ownership of the Marks and the renown of the Marks
worldwide. Licensee agrees not to take any action inconsistent with such
ownership and further agrees to take, at BioKool’s reasonable expense, any
action, including, the conduct of legal proceedings, that BioKool deems
necessary to establish and preserve BioKool’s rights in and to its Marks.
Licensee shall not adopt, use or attempt to register any trademarks or trade
names that are confusingly similar to the Marks.

8.             TERM AND
TERMINATION

8.1           Term.  Unless earlier terminated pursuant to the
terms and conditions of this Agreement, this Agreement shall commence on the
Effective Date and shall remain in force for ten (10) years.  The Agreement may be renewed by mutual
agreement of the parties.

8.2           Termination
for Cause. Either party shall have the right to terminate this
Agreement for default by the other in performance of any material obligation
under this Agreement where such default continues for a period of sixty (60)
days after written notice thereof to the defaulting party specifying such
default.  In addition, Licensee shall 

 

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7

have the right to terminate this Agreement upon the
material breach of BioKool of the representations and warranties set forth in
Section 11.

8.3           Effect of Termination.  Upon termination, Licensee shall be permitted
to sell any Products in inventory at the time of termination but shall not make
any more Products containing Licensed Ingredients, subject to payment of
applicable royalties.  If Licensee has
been using the Totala mark for Products, BioKool agrees not to use the Totala
mark for one year after expiration or termination of the Agreement.   Sections 2.3, 2.4, 8.3, 9, 10, 11, 12 and 13
shall survive any termination or expiration of this Agreement.

9.             LIMITED
LIABILITY

9.1           Waiver.  EXCEPT FOR ANY BREACHES OF ANY LICENSE
RESTRICTIONS, CONFIDENTIALITY, OR EXCLUSIVITY RESTRICTIONS, AND EXCEPT FOR ANY
AMOUNTS PAYABLE PURSUANT TO AN INDEMNITY OBLIGATION HEREUNDER, NEITHER PARTY
WILL BE LIABLE TO THE OTHER PARTY FOR ANY LOST PROFITS OR FOR ANY
CONSEQUENTIAL, SPECIAL OR INCIDENTAL DAMAGES OF ANY KIND ARISING OUT OF OR
RELATED TO THIS AGREEMENT OR THE LICENSED INGREDIENTS, FOR ANY CAUSES OF ACTION
OF ANY KIND (INCLUDING TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY AND BREACH
OF WARRANTY), EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.  The parties acknowledge and
agree that this limitation of liability is an essential element of this
Agreement and in its absence the material terms of this Agreement would be
substantially different.

10.           INDEMNIFICATION

10.1         IP Indemnity
by BioKool.  BioKool shall
indemnify, defend and hold Licensee harmless from and against any and all
liabilities, damages, costs and expenses, including reasonable attorneys’ fees,
expert witness fees and court costs, incurred by Licensee to the extent it is
based upon a claim that the Licensed Ingredients, the BioKool Mineral
Technology or any Intellectual Property Rights related thereto, or any use of
the Licensed Ingredients, BioKool Mineral Technology or any Intellectual
Property Rights related thereto in any of the licensed applications
contemplated by Section 2.1 above, infringes upon any patent, trademark, copyright
or other intellectual property right, or misappropriate any trade secret, of
any third party.  In such case, Licensee
agrees to (i) promptly notify BioKool in writing of a claim against which it is
indemnified hereunder; (ii) give BioKool sole control of the defense and all
related settlement negotiations (subject to the written approval of Licensee,
not to be unreasonably withheld) for any settlements that do not
unconditionally release Licensee or that materially affect the terms of this
Agreement; and (iii) provide BioKool at BioKool’s expense with the assistance,
information and authority reasonably necessary to perform the above. Licensee
also may participate in the defense of a claim at its option and its own
expense. Licensee shall also indemnify, defend and hold BioKool harmless from
and against any and all liabilities, damages, costs and expenses, including
reasonable attorneys’ fees, expert witness fees and court costs, incurred by
Licensee to the extent it is based upon conducting its 

 

8

operational
business practices and not related to Licensed Ingredient or the BioKool
Mineral Technology or any Intellectual Property Rights thereof.

10.2         Indemnity by
Licensee.  Except with respect
to the claims for which BioKool is obligated to indemnify Licensee under
Section 10.1, Licensee shall indemnify, defend and hold BioKool harmless from
and against any and all liabilities, damages, costs and expenses, including
reasonable attorneys’ fees, expert witness fees and court costs, incurred by
BioKool to the extent it is based upon (a) a claim that the Products infringe
upon any patent, trademark, copyright or other intellectual property right, or
misappropriate any trade secret, of any third party or (b) a claim alleging
misrepresentations regarding the efficacy of the Products; provided that
BioKool (i) promptly notifies Licensee in writing of a claim against which it
is indemnified hereunder; (ii) gives Licensee sole control of the defense and
all related settlement negotiations (subject to the written approval of
BioKool, not to be unreasonably withheld) for any settlements that do not
unconditionally release Licensee or that materially affect the terms of this
Agreement; and (iii) provides Licensee at Licensee’s expense with the
assistance, information and authority reasonably necessary to perform the
above.  BioKool also may participate in
the defense of a claim at its option and its own expense.

11.           REPRESENTATIONS
AND WARRANTIES

11.1         Performance
Warranty.  BioKool represents
and warrants that all Licensed Ingredients delivered hereunder shall conform
with the specifications for such Licensed Ingredients and set forth in Exhibit
A.

11.2         Title Warranty.  BioKool represents and warrants that it has
all necessary right, title and authority to enter this Agreement and to grant
the licenses granted under this Agreement and to supply all Licensed
Ingredients.

12.           CONFIDENTIALITY

12.1         Confidential
Information.  Both parties will maintain in confidence all
Confidential Information disclosed by the other party (the “Disclosing Party”).  A receiving party hereunder (the “Receiving
Party”) will not use, disclose or grant use of such Confidential Information
except as expressly authorized by this Agreement.  To the extent that disclosure is authorized
by this Agreement, a Receiving Party will obtain prior agreement from its
employees, agents or consultants to whom disclosure is to be made to hold in
confidence and not make use of such information for any purpose other than
those permitted by this Agreement.  A Receiving
Party will use at least the same standard of care as it uses to protect its own
most confidential information to ensure that such employees, agents or
consultants do not disclose or make any unauthorized use of such Confidential
Information.  The Receiving Party will
promptly notify the Disclosing Party upon discovery of any unauthorized use or
disclosure of the Confidential Information.

12.2         Exceptions. 
The obligations of confidentiality contained in Section 12.1 will
not apply to the extent that it can be established by the Receiving Party
beyond a reasonable doubt that such Confidential Information:

 

9

 

(a)                                  was already known to
the Receiving Party, other than under an obligation of confidentiality, at the
time of disclosure by the Disclosing Party;

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

(c)                                  became generally
available to the public or otherwise part of the public domain after its
disclosure and other than through any act or omission of the Receiving Party in
breach of this Agreement;

(d)                                 was disclosed to the
Receiving Party, other than under an obligation of confidentiality, by a third
party who had no obligation to the other party not to disclose such information
to others; or

(e)                                  was developed
independently by the Receiving Party without any use of Confidential
Information.

12.3         Permitted Disclosures.
Notwithstanding Section 12.1, each party hereto may disclose the other party’s
information to the extent such disclosure is reasonably necessary in complying
with government regulations or otherwise submitting information to tax or other
governmental authorities.

13.           MISCELLANEOUS

13.1         Governing
Law. This Agreement shall be interpreted and construed in accordance
with the laws of the State of California, without regard to conflicts of law
principles.

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

13.3         Binding
Effects. The terms and conditions of this Agreement shall be binding
on and inure to the benefit of the successors and assigns of the parties;
provided, however, that BioKool may not assign its rights hereunder to any
third party without the written consent of Licensee.  Any such purported assignment shall be null
and void from the beginning.

13.4         Independent
Contractor. The relationship of the parties hereto is that of
independent contractors. A party hereto shall not be deemed to be an agent,
partner, or venturer of the other for any purpose as a result of this Agreement
or the transaction contemplated thereby.

13.5         Compliance
with Laws. In exercising their rights under this license, the
parties shall fully comply with the requirements of any and all applicable
laws, regulations, rules and orders of any governmental body having
jurisdiction over exercise of rights under the license.

 

10

 

13.6         Notices.  Any notice required or permitted to be given
to the parties hereto shall be given in writing and shall be deemed to have
been properly given if delivered in person or when received if mailed by first
class certified mail or sent by facsimile to the other party at the appropriate
address as set forth below or to such other addresses as may be designated in
writing by the parties from time to time during the term of this Agreement.

BIOKOOL

16121 W. Eddie Albert Way

Goodyear, AZ 85338

 

LICENSEE

Bare Escentuals, Inc.

425 Bush Street, Suite 300

San Francisco, CA 94108

attn:

13.7         Severability.
In the event of any provision of this Agreement becomes or is declared by any
court of competent jurisdiction to be illegal, unenforceable or void, this
Agreement shall continue in full force and effect without said provision and
the parties shall discuss in good faith appropriate revised arrangements.

13.8         Force
Majeure. Nonperformance by either party (except for payment
obligations) shall be excused to the extent that performance is rendered
impossible by strike, fire, earthquake, flood, governmental acts or orders or
restriction, failure of suppliers, or any other reason when failure to perform
is beyond the reasonable control and not caused by the negligence,
international conduct or misconduct of the nonperforming party.

13.9         Complete
Agreement. It is understood and agreed between BioKool and Licensee
that this Agreement inclusive of its exhibits constitutes the entire agreement.
No amendment or change hereof or addition hereto shall be effective or binding
on either of the parties hereto unless reduced to writing and executed by the
respective duly authorized representatives of BioKool and Licensee.

IN WITNESS WHEREOF, the
parties have hereby executed this Agreement, their respective officers hereunto
duly authorized, as of the day and year first above written.

	
  BioKool
  LLC

  	
   

  	
  Bare
  Escentuals, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  /s/
  Rodger Blotsky

  	
   

  	
  By

  	
  /s/
  Leslie Blodgett

  
	
  Name

  	
  Rodger
  Blotsky

  	
   

  	
  Name

  	
  Leslie
  Blodgett

  
	
  Title

  	
  President

  	
   

  	
  Title

  	
  CEO

  

 

11

EXHIBIT 
A

	
  LICENSED INGREDIENTS

  	
   

  	
  PRICE

  

 

***

 

Licensed
Ingredient Specifications:

***

 

 

 

***         PORTIONS OF THIS PAGE HAVE BEEN OMITTED
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.

 

12

EXHIBIT B

PATENTS

 

US
Patent Application Filed on December 2, 2003, Titled: Mineral Nutritional,
Cosmetic, Pharmaceutical, and Agricultural Compositions and Methods for
Producing the Same — By Inventors — Blotsky & Figueroa

 

13

EXHIBIT C

CLINICAL TESTS

 

CLINICAL
TEST RESULT SPECIFICATIONS:

 

***

 

 

***         PORTIONS OF THIS PAGE HAVE BEEN OMITTED
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.

 

14

EXHIBIT D

ANNUAL MINIMUM ROYALTIES

 

	
  Year (anniversary of

  	
   

  	
   

  	
   

  
	
  Effective Date)

  	
   

  	
  Minimum Royalty

  	
   

  
	
   

  	
   

  	
  ***

  	
   

  

 

 

 

***         PORTIONS OF THIS PAGE HAVE BEEN OMITTED
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.

 

15

EXHIBIT F

TotalaTM 
MARKINGS

 

Any
use of the “Totala” mark must be accompanied by the following footnote stating:
“TOTALATM is a registered trademark of BioKool LLC.”

 

 

16

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