Document:

Exhibit 10.62

 

 

BETWEEN:

 

HER MAJESTY THE QUEEN IN RIGHT OF CANADA,

as represented by the Minister of Health,

acting through the Public Health Agency of Canada

 

(“Canada”)

 

AND:

 

BIOPROTECTION SYSTEMS CORPORATION,

a company incorporated as a subchapter C corporation

under the laws of Delaware, having its registered office at

Iowa State University Research Park,

2901 South Loop Drive, Suite 3360, Ames, Iowa, USA 50010

 

(“Company”)

 

INTRODUCTION:

 

A.            WHEREAS Canada is one
of the major performers in Canada of vaccine research relating to viral
hemorrhagic fever (“VHF”) viruses;

 

B.            WHEREAS Canada has
developed the technology known as the [*];

 

C.            WHEREAS the main
features of the technology include  [*];

 

D.            WHEREAS the Company
has requested a license from Canada to develop and Commercialize
the technology;

 

E.             WHEREAS Canada is
willing to grant to the Company a license to develop and Commercialize
the technology on the terms and conditions set out in this License
Agreement;

 

F.             WHEREAS the
fundamental principles underlying this License Agreement
are that:

 

i)              Canada
surrenders its commercial self-interest to the Company; and

 

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ii)             In exchange, in good faith, the Company uses its
discretion and experience in product development and regulatory affairs, its
commercial resources and business savvy and, assuming that any relevant
statutory, regulatory or administrative authorizations or permits for a vaccine
product are obtained, its marketing, sale and distribution savvy for the
benefit of both Parties.

 

G.            WHEREAS the salient
elements of this License Agreement are:

 

i)              Canada grants
to the Company sole, worldwide, revocable and royalty-bearing license to make,
use, improve, develop and Commercialize
the technology in the field of prevention and prophylaxis against and treatment
of VHF viruses in humans, whether before or after exposure;

 

ii)             Canada will retain non-commercial rights in the
technology, including rights to use and further develop the technology for
educational and research purposes;

 

iii)            The Company grants to Canada a non-exclusive and
royalty-free license to make, use, manufacture and sell the VHF vaccine
products developed by the Company in the exercise of the Licensed
Rights, in the event of a public health emergency:

 

iv)           The Company will make good faith efforts to
collaborate with Canada on  [*] of the
Company’s basic research and development activities related to VHF virus vaccines; and

 

v)            The Parties agree to maintain the
confidentiality of each other’s Confidential Information
provided under this License Agreement.

 

H.            WHEREAS the
expectations of the Parties are that the Company will use commercially
reasonable efforts to develop a VHF vaccine
and, assuming that any relevant and necessary statutory, regulatory and
administrative authorizations or permits that may be required for a vaccine
product are obtained, Commercialize
it; and

 

I.              WHEREAS the Parties
have agreed to their commercial relationship on the terms and conditions set
out in this License Agreement.

 

NOW
THEREFORE in consideration of the premises, the terms and
conditions hereinafter contained and other good and valuable consideration, the
receipt of which is hereby acknowledged by each party, the Parties hereto
covenant and agree as follows:

 

1.0 DEFINITIONS

 

1.1          “Affiliate”

 

means
any corporation, subsidiary, partnership or other entity which the Company,
directly or indirectly, controls (or has common control of) or which, directly
or indirectly, controls the Company:

 

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1.1.1        through the ownership of
more than 50% of the voting share capital, and the votes attached to those
securities are sufficient, if exercised, to elect a majority of the directors
of the body corporate; or

 

1.1.2        otherwise has the
possession, direct or indirect, of the powers to direct or cause the direction
of the management or policies of a person or entity; whether through ownership
of equity participation, voting securities, or beneficial interests; by
contract, by agreement, or otherwise.

 

Identified
in appendix D (“Affiliates”) are the Affiliates
of the Company In existence on the Execution Date.

 

1.2          “Commercialization”
or “Commercialize”

 

means:

 

1.2.1        the commercial making,
using, Sale or offering to sell;

 

1.2.2        of the products resulting
from the exercise of the Licensed Rights;

 

1.2.3        by the Company, its Affiliates or its sub-licensees;

 

1.2.4        in the Territory;

 

1.2.5        within the Field of Use; and

 

1.2.6        for the maximum commercial
return to the Company and Canada in accordance with Article 4
(Exploitation of Licensed Rights) including:

 

1.2.6.2             the Company obtaining any
statutory, regulatory or administrative authorizations or permits that may be
required in order for the Company to legally carry out all of its activities
under the License Agreement.

 

1.3          “Confidential
Information”

 

means,
with respect to a Party, all proprietary
information of any type, or any part or portion thereof, that is disclosed by
that Party to the other Party pursuant to this License Agreement, whether or not
such information is specifically marked or identified as confidential at the
time of disclosure, which may include without limitation.

 

1.3.1        all scientific, technical,
business, financial, legal, marketing or strategic information (including trade
secrets and proprietary know-how);

 

1.3.2        all documented research,
development, demonstration or engineering work, information that can be or is
used to define a design or process or procure, produce, support or operate
material and equipment, methods of production, regardless of its form:

 

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1.3.3        all drawings, blueprints,
patterns, plans, flow-charts, equipment, parts lists, software and procedures,
specifications formulae, designs, technical data, descriptions, related
instruction manuals, records and procedures;

 

1.3.4        information that is
non-public, confidential, privileged or proprietary in nature.

 

which
may have actual or potential economic value in part from not being known and
may be positive (what works) or negative (what does not) information;

 

1.3.5        however fixed, stored,
expressed or embodied (and includes, without limitation, samples, prototypes,
specimens and derivatives);

 

1.3.6        and including information
disclosed during discussions, meetings, tests, demonstrations, correspondence
or otherwise.

 

1.4          “Confidentiality
Agreements”

 

means
the agreements previously executed between the Parties
on the 1st day of May, 2007, November 1, 2008, and
the amending letter of April 14, 2010 respectively, and contained in
Appendix B (Confidentiality Agreements).

 

1.5          “Dispute”

 

for
purposes of Article 16 (Alternate Dispute Resolution (ADR)), and paragraph
17.17 (Forum Conveniens)

 

1.5.1        includes without limitation
any controversy, conflict, claim, disagreement or difference of opinion arising
out of the License Agreement,
(irrespective of whether it is premised on contract, tort or trust / equity),
including, without limitation, any issues concerning the breach,
interpretation, rectification, termination, performance, enforcement or
validity of the License Agreement or the
rights and liabilities of the Parties in
relation to the License Agreement;

 

1.5.2        irrespective of the fact
that there is no arguable defence under the License
Agreement, or that the facts or law are undisputable and subject
to judicial summary proceedings;

 

but
Dispute does not encompass

 

1.5.3        any controversy, conflict,
claim, disagreement or difference of opinion or the rights and liabilities of
the Parties

 

1.5.3.2             under any collateral or
antecedent agreements independent of the License Agreement;
or

 

1.5.3.3             with any emanation of Her
Majesty the Queen in Right of Canada, other than the Public Health Agency of
Canada.

 

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1.6          “Execution
Date”

 

means
the date on which the last signature is affixed to this License
Agreement.

 

1.7          “Field
of Use”

 

means
the application and use of the Licensed Rights
only with products to be sold or used by the Company, or its Affiliates or sublicensees or
marketed through specified trade channels in the field of prevention and
prophylaxis against and treatment of VHF viruses in humans and for no other
purposes whatsoever.

 

1.8          “Generally
Accepted Accounted Principles (GAAP)”

 

means,
at any time, accounting principles generally accepted in Canada as recommended
in the Handbook of the Canadian Institute of Chartered Accountants at the
relevant time, applied on a consistent basis (except for necessary or advisable
changes in accordance with the promulgations of the Canadian Institute of
Chartered Accountants).  If and when
Canadian GAAP does not address an accounting issue, then generally accepted
accounting principles in the United States will apply.

 

1.9          “Improvement(s)”

 

means
any modification, improvement, enhancement, variation, refinement, derivative
or development relating to the Licensed Rights
which

 

1.9.1        infringes any one or more
claims of any of the Patents; or

 

1.9.2        constitutes a technological
advance of any degree using any of the Patents or Confidential Information
(irrespective of whether it infringes one or more claims of the Patents); and

 

1.9.3        was made and reduced into
practice during the term of the License Agreement
or within 12 (twelve) months of its termination or expiration by either Party; and

 

1.9.4        when applicable, Canada is
lawfully entitled to communicate and license to the Company without breaching
any restrictions on use or disclosure to third parties.

 

1.10        “Intellectual
Property”

 

means,
as of the Execution Date, all Patents, trade-marks, copyrights,
industrial designs, trade-names, trade secrets, Confidential
Information and other intellectual property rights whether
registered or not, whether proprietary or not

 

i)              owned by or licensed to
Canada, relating to the Licensed Rights;
or

 

ii)             owned by or licensed to the Company, relating to the
Improvements made by the Company,
its Affiliates or sub-licensees,

 

as
the case may be.

 

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1.11        “License
Agreement”

 

means
this agreement and including all attached appendices and future amendments, and
refers to the whole of this agreement, not to any particular section or portion
thereof.

 

1.12        “Licensed
Product(s)”

 

means
any product resulting from Commercialization
under this License Agreement.

 

1.13        “Licensed
Rights”

 

means
the exercise, as of the Execution Date,
in whole or in part, of

 

1.13.1              the Patents;
and

 

1.13.2              related Intellectual
Property and Confidential Information
and any subsequent changes thereto that are expressly incorporated into the License Agreement,

 

within
the Field of Use as listed in Appendix A
(Description of the Licensed Rights).

 

1.14        “Party”

 

means
any one of the signatories to the License Agreement
and “Parties” means both of them.

 

1.15        “Patents”

 

means

 

1.15.1              the patents and patent
applications as listed in Appendix A (Description of the Licensed
Rights);

 

1.15.2              any author certificates,
inventor certificates, utility certificates, improvement patents and models and
certificates of addition, and includes any divisions, reissues, renewals,
reexaminations and extensions thereof, and all continuations,
continuations-in-part and divisionals of the applications for such patents,
continuations, continuations-in-part, extensions, re-issues thereof for such
patents, including, but not limited to, those patents listed in “Appendix A”
and any subsequent patents whose priorities are derived from any patents listed
in Appendix A; and

 

1.15.3      subsequently patented Improvements to Patents.

 

1.16        “Sale”

 

means
without limitation the act of transferring (conditionally or unconditionally,
permanently or temporarily) the results of the exercise of the Licensed Rights for consideration
including but not limited to sale, lease, gift, barter, exchange or other 

 

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disposition
for value.  (For greater clarity any
internal corporate use / consumption whatsoever of the Licensed
Rights by the Company or an Affiliate
or sublicensee shall be deemed a Sale at the
Sales Price at the lime of the use /
consumption or allocation for internal use / consumption, whichever is the
earlier).

 

1.17        “Sales
Price”

 

means
the aggregate gross price paid by an arm’s length purchaser or lessee for any
of the results of the exercise of the Licensed Rights
sold or leased by the Company without deduction, rebate or pass throughs.  If the gross price is less than the fair
market value, then, for royalty calculation purposes, the gross price shall be
the fair market value as set by Canada in its unfettered discretion.

 

1.18        “Taxes”

 

means
taxes (including, without limitation, sates taxes, goods & services
taxes, value added taxes, however described), levies, imposts, deductions,
charges, license and registration fees, assessments, withholdings / withholding
taxes and duties imposed by any jurisdiction or authority (including stamp and
transaction taxes and duties) together with any related interest, penalties,
fines and expenses in connection with them.

 

1.19        “Territory”

 

means
the entire world, always subject to:

 

1.19.1      the United Nations Act,
R.S.C. 1985, Chap. U-2:

1.19.2      the Export &
Import Permits Act, R.S.C. 1985;

1.19.3      Chap. E-19, Special
Economic Measures Act, S.C. 1992, Chap. 17;

1.19.4      Foreign Extra-Territorial
Measures Act, R.S.C. 1985 c. F-29; and

1.19.5      any other pertinent Canadian
statutory or regulatory strictures.

 

For
greater clarity Territory means all countries
and jurisdictions of the world.

 

1.20        “VHF”

 

means
viral hemorrhagic fevers.

 

2.0 GRANT &
RESERVATIONS

 

2.1          Grant:

 

Subject
to:

 

2.1.1        the definitions, terms and
conditions of the License Agreement,

 

2.1.2        the Company complying with
and not being in breach of any of the provisions of the License
Agreement, and

 

2.1.3        any third party peremptory
rights,

 

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Canada
hereby grants to the Company a personal, non-transferable, sole, revocable,
royalty-bearing license for Commercialization.

 

Nothing
herein shall constitute in any manner whatsoever:

 

2.1.4        an assignment or other
transfer of proprietary rights in the Licensed Rights
to the Company; or

 

2.1.5        any authorization or
permission beyond that expressly given in this License
Agreement.

 

2.2          Carve
Out

 

Notwithstanding
anything to the contrary in the License Agreement,
Canada retains from the License Agreement,
any and all absolute and unfettered rights necessary to do the following:

 

2.2.1        improve the Licensed Rights or Patents;

 

2.2.2        to carry out educational
activities;

 

2.2.3        to pursue research and
development, directly or indirectly, related to the Licensed
Rights or Patents
with or without the Company, collaborators or sponsors, with all attendant
rights of publication;

 

2.2.4        to make, have made,
manufacture, use, license sell and distribute and to administer (directly or
through health care providers) to Canadians products resulting from the
exercise of the Licensed Rights, the Patents and the Improvements
in the event of a public health emergency pertaining or related to VHF in Canada, for the purpose of prevention or treatment of
VHF, where:

 

2.2.4.2             the Company has not obtained
regulatory approval of its product(s) under the Food and Drugs Act of
Canada at the time the emergency is identified by Canada; or

 

2.2.4.3             the Company is not able to
satisfy the demand for its approved product(s) in Canada at the time the
emergency is identified by Canada;

 

2.2.5        to make, have made,
manufacture, use and distribute and to administer to Canada’s staff products
resulting from the exercise of the Licensed Rights,
the Patents and the Improvements,
for the purpose of prevention and treatment of VHF,
whether in or outside a public health emergency in Canada or abroad, and

 

2.2.6        to make, have made,
manufacture, use, license, sell and distribute and to administer (directly or
through health care providers) products resulting from the exercise of the Licensed Rights, the Patents and the Improvements,
outside of 

 

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Canada, for compassionate
care purposes for the prevention or treatment of VHF,
where:

 

2.2.6.2             the Company has not obtained
regulatory approval of its product(s) under the laws of the foreign
country in question at the time the compassion care is identified by Canada; or

 

2.2.6.3             the Company is not able to
satisfy the demand for its approved products) in the foreign country in
question at the time the compassionate care is identified by Canada.

 

2.3          Non
Compete by Canada

 

Subject
to clause 2.2, Canada shall not commercially compete with the Company, or grant
a license to any third party for commercial purposes, within the Field of Use concerning the Licensed Rights in the Territory.

 

2.4          Sublicensing
Permitted

 

The
Company is permitted to sub-license Affiliates
and non-affiliated or non-controlled parties, on the same terms and conditions
of this License Agreement.  The Company has no right to encumber any
contractual, legal or equitable rights the Company may have against any Affiliate or sub-licensee in favour
of any financial institution or any third party whatsoever.

 

2.5          Sublicensing
Conditions

 

Any
sub-license or any amendment to any sub-license granted by the Company to Affiliates and non-affiliated or
non-controlled parties, shall:

 

2.5.1        be royalty-bearing,
revocable, without the right to sub-sub-license, except with the prior written
consent of Canada, which consent shall not be unreasonably withheld;

 

2.5.2        carry a royalty rate no less
than that prescribed in the License Agreement;

 

2.5.3        be only within the Territory or any portion thereof;

 

2.5.4        be only within the Field of Use or a subset thereof;

 

2.5.5        be subject to the same
obligations and restrictions as those required of the Company under the License Agreement;

 

2.5.6        be copied to Canada
immediately following execution; and

 

2.5.7        not be a de facto assignment.

 

For
greater clarity, Canada shall receive from the Affiliates
and sub-licensees not less than the same amount of consideration Canada would
have received from the Company,

 

9

 

had
the Company conducted the Commercialization
rather than the Affiliates or
sub-licensees.  The Company shall ensure
that any monies owing to Canada from the Affiliates
or sub-licensees are paid to Canada when due, and shall be liable for any such
monies irrespective of whether or not the Affiliate
or sub-licensee paid the Company.

 

2.6          Sub-Licensee
Consideration

 

In addition to the royalties payable by the Affiliates
and sub-licensees to Canada as contemplated in paragraph 2.5 (Sub-licensing
Conditions), the Company shall also pay to Canada  [*]  paid by the Affiliates
and sub-licensees to the Company.

 

2.7          Termination

 

Termination
of the License Agreement shall also
terminate any subsisting sub-licenses, but any consideration due or owing to
Canada shall be paid promptly thereafter, and any and all unsatisfied
obligations and rights shall subsist until satisfied.

 

3.0 TERM

 

3.1          Term

 

This
License Agreement shall commence on
the Execution Date and shall continue in
force until the expiry of the last to expire of the Patents
included in the Licensed Rights, subject to:

 

3.1.1        early termination as
prescribed under Article 15.0 (Termination); and

 

3.1.2        condition subsequent in
paragraph 4.1 (Business Plan).

 

4.0 EXPLOITATION OF
LICENSED RIGHTS

 

4.1          Business
Plan

 

The
Company shall submit a business plan to Canada within thirty (30) days of the Execution Date.  Canada shall have the right to request
amendments to the business plan in order to ensure maximum commercial return to
the Company and Canada in accordance with this Article 4 (Exploitation of
Licensed Rights).  Once Canada has
accepted the business plan, the plan is then Appendix C (Business Plan) and all
the Company’s representations and statements in the plan are incorporated into
the License Agreement.

 

4.2        Disclosure
Requirements

 

The
business plan shall provide sufficient detail to show how the Company plans to
diligently research, develop and promote and make commercially reasonable
efforts to Commercialize.  This business plan shall also disclose any

 

4.2.1        distribution and agency
arrangements contemplated by the Company;

 

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4.2.2        market studies pertinent to
the Licensed Rights;

 

4.2.3        pro forma financial
statements of sufficient detail to allow a thorough financial analysis of the
Company’s assumptions, projected revenue streams and costs.

 

4.3           Continuing
Disclosure

 

During
the term of the License Agreement, the
Company shall promptly provide to Canada any amendments or updates to the
business plan.

 

4.4           Inducement

 

The
Company acknowledges that the business plan as orally presented to Canada in a
pre-contractual setting, and subsequently manifested in the written format
under paragraph 4.1, as accepted by Canada is the major inducement for Canada
to enter into the License Agreement on the
terms and conditions prescribed herein.

 

4.5           Breach

 

If the Company

 

4.5.1        commits a misrepresentation,
omission, concealment or incorrect statement of a material fact in the
negotiations leading to the License Agreement
in general or leading to or in the business plan in particular; or

 

4.5.2        breaches any representations
or statements in the business plan,

 

then such failure is a material breach of the License
Agreement which provides Canada with the discretionary election
either to:

 

4.5.3        rescind the License Agreement and seek damages;
or

 

4.5.4        maintain the License Agreement and seek damages
alone.

 

4.6           Commercially
Reasonable Efforts to Commercialize

 

As
an inducement to Canada to enter into the License Agreement,
during the term (or the renewal) of the License Agreement,
the Company shall:

 

4.6.1        use commercially reasonable
efforts to Commercialize;

 

4.6.2        use commercially reasonable
efforts to create and satisfy demand for the Licensed
Rights; and

 

4.6.3        not do, or assist anyone to
do, anything inimical to the Commercialization.

 

Payment
of fees and royalties under Article 5 (Fees & Royalties) does not
relieve the Company of its obligation under paragraph 4.6 (Commercially
Reasonable Efforts to Commercialize).

 

11

 

4.7           Shelving
a Fundamental Breach

 

Any
“parking”, “shelving” or other activity or inactivity concerning the Licensed Rights whereby the Company
is not using its commercially reasonable efforts to diligently and aggressively
Commercialize the Licensed Rights in the Territory, is a fundamental breach
of the License Agreement.

 

4.8           Research
Support Collaboration

 

In
carrying out basic research and development activities concerning the Licensed Rights and VHF vaccine during the term of this License
Agreement, and any renewal thereof, the Company shall make good
faith efforts to collaborate with Canada on [*]  of
such activities, under collaborative research agreements containing
commercially reasonable terms and conditions as agreed to by the Parties at that time.  Any payments made by the Company pursuant to
such collaborations shall not diminish or affect the Company’s obligation to
pay fees and royalties under Article 5 (Fee and Royalties).

 

5.0 FEES AND ROYALTIES

 

5.1           Fees

 

The
Company shall pay to Canada the following non-refundable lump sums:

 

5.1.1        PATENT FEES

[*], payable within thirty (30) calendar days of the Execution Date, as a reimbursement
of Patent costs incurred by Canada to
date;

 

5.1.2        SIGNING FEE

[*], payable upon signing, as a non-creditable and non-refundable
signing fee in consideration of the execution of the License
Agreement;

 

5.1.3        MILESTONE FEES [*] lump sum
payable on the earlier of [*] or [*] years of the Execution
Date, whichever comes first;

 

5.1.4        MILESTONE FEES [*] lump sum
payable on the earlier of [*] or [*] years of the Execution
Date, whichever comes first;

 

5.1.5        MILESTONE FEES [*] lump sum
payable on the earlier of [*]or [*] years of the Execution
Date, whichever comes first;

 

5.1.6        MILEPOST FEES [*] lump sum
payable on the earlier of [*] or [*] of the Execution Date,
whichever comes first.

 

5.2           Royalty
Percentage Rate

 

The
Company shall pay to Canada a royalty rate of [*] of the Sales
Price of Licensed Products
sold by the Company, its Affiliate(s) or
sublicensees.

 

5.2.1        The royalty rate shall be
lowered to [*] if:  a) an additional
technology is required to Commercialize;
and b) the additional technology is actually licensed by the Company from a
third party and the latter actually charges royalties to the 

 

12

 

Company for such a license (as shown by documentation
sufficient to establish the requirement and the actual license).

 

5.2.2        The rate shall be towered to
[*] if:  a) two (2) or more
additional technologies are required to Commercialize;
and b) the additional technologies are actually licensed by the Company from
one or more third parties and the latter actually charge royalties to the
Company for such a license (as shown by documentation sufficient to establish
the requirement and the actual license).

 

5.3           Minimum
Royalty

 

Notwithstanding
any other provision of the License Agreement,
the Company shall pay to Canada a minimum annual royalty of  [*],
payable on or before January during each year of the License
Agreement.  Such amounts
paid shall be creditable against royalties owed under clause 5.2 (Royalty
Percentage Rate) and sub-license payments owed under clause 5.4 (Sub-Licensing
Consideration) in the same year.

 

5.4           Sub-Licensing
Consideration

 

The
Company shall pay to Canada  [*]  paid by the Affiliates
and the sublicensees to the Company. 
Such payments shall be over and above the royalty rate paragraph 5.2
(Royalty Percentage Rate) (whether or not such consideration was directly,
indirectly or derivatively paid or provided) including without limitation any
equity.

 

5.5           Sub-Licensee’s
Fees

 

5.5.1        COLLECTION AND ENFORCEMENT
BY THE COMPANY

 

The Company shall ensure that royalties payable to Canada from Affiliates and sub-licensees shall
be remitted directly to the Receiver General for Canada, at the address
provided in Article 20.1 (Notice). 
The Company shall take any necessary actions (at the Company’s own cost)
to collect, enforce and remit royalties or other consideration owing to Canada
by the Affiliates and sub-licensees.

 

5.5.2        SUB-LICENSEE’S ARREARS PAID
BY THE COMPANY

 

If an Affiliate or sub-licensee has
royalties or other consideration owing to Canada under a sub-license for a
period in excess of thirty (30) days, then the Company shall pay to Canada that
amount owing within the next fourteen (14) days immediately following the
aforementioned thirty (30) days.

 

5.6           Taxes

 

The
Company shall pay Taxes at the applicable
prevailing rates exigible on the Company’s activities under the License Agreement, including without
limitation Commercialization or on the
payment of royalties, including any withholding taxes that in the first
instance are levied against Canada

 

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5.7           Payment
to Canada

 

Unless
the License Agreement expressly provides
otherwise, the Company shall pay any and all monies and consideration owing to
Canada as follows:

 

5.7.1        TIME & MODE

 

quarterly,
by cheque or money order, commencing on December 31, 2010 and thereafter
on March 31, June 30, September 30 and December 31 of each
year of this License Agreement;

 

5.7.2        CURRENCY & ADDRESS

 

except
for royalties generated from Commercialization
within Canada, cheques for the payment of royalties shall be in U.S. funds (at
the conversion rate stated in the Wall Street Journal on the day prior to the
date payment is due) and made payable to the “Receiver General for Canada”.  The cheque(s) shall be sent to

 

Director, Intellectual
Property Management & Business Development Public Health Agency of
Canada

1015
Arlington Street, Suite 2420

Winnipeg,
Manitoba, Canada

R3E
3R2;

 

5.7.3        ACCOMPANYING DOCUMENTATION

 

each
cheque shall be accompanied by a statement bearing the name / identification of
this License Agreement and the Licensed Rights, and showing the
period covered, the total sales, per country sales, the per country royalty
applicable and the total royalty paid or consideration paid, as applicable.

 

5.8           Payments
to Canada after Termination

 

The
Company shall pay to Canada any consideration due and payable under the License Agreement, whether incurred
before termination or after, in accordance with Article 15 (Termination).

 

5.9           Payment
after Expiry of Patents

 

The
Company shall continue paying the amounts as prescribed in this Article,
notwithstanding any impeachment proceedings, or the expiry, expungement or
other nullification of the Patents.

 

5.10         No
Set-off

 

Notwithstanding
any other provision of the License Agreement,
any consideration payable to Canada by the Company under the License Agreement is unconditional
and 

 

14

 

non-cancelable.  Further, the Company shall not have the right
of set-off, deduct or counter-claim against any such consideration.

 

5.11         Accounting
Approach

 

5.11.1      GAAP

 

The
Company shall use GAAP in the calculation of consideration owing to Canada.

 

5.11.2      ACCRUAL

 

Royalties
accrue on receipt of payment by the Company (or Affiliates
or the sub-licensees) for the Licensed Rights.

 

5.11.3      INTEREST OF OVERDUE ACCOUNTS

 

In
the event the Company fails to make any payment under the License
Agreement when due and payable, then interest on any unpaid
amount shall accrue at a rate of four (4)% above the base rate of the Bank of
Montreal, Toronto, from time to time in force during the period of non-payment.

 

5.11.4      OTHER BASIS FOR PAYMENTS

 

If
the Company receives any lump sum or other payments, royalties (including
royalty payments received from third parties), or any other income or
consideration for, or in respect of the Commercialization
of the Licensed Rights, then the
Company shall include such additional income in calculating the Sales Price.

 

6.0 RECORDS AND AUDIT

 

6.1           Records
Maintenance

 

The
Company shall keep true and accurate records and maintain such records relating
to Commercialization and all other
obligations of the Company under the License Agreement
during the term of the License Agreement
and for ten (10) years following the termination or expiration of the License Agreement.

 

6.2           Record
Type

 

For
greater clarity and without limiting the generality of the foregoing, records
cited in paragraph 6.1 (Records) shall comprehensively address:

 

6.2.1        financial, business,
manufacturing and technical support, including without limitation sales
reports, inventory reports, subcontractor and distributor agreements, tax
returns, catalogues, price lists, shipping records, invoice registers,
invoices, financial statements and ledgers; and

 

15

 

6.2.2        quality standards and
monitoring reports and records.

 

6.3           Records,
Access to those held by Off Site Professionals

 

The
Company irrevocably authorizes its independent accountants, KPMG LLP, to
provide to Canada’s independent accountants any information it may have with
respect to the Commercialization.

 

6.4           Audit
Document Right

 

Upon
the written request of Canada and with at least fifteen (15) calendar days
prior notice, the Company shall permit an independent accountant, retained by
Canada, to inspect all relevant records (whether held internally by the Company
or at the offices of professional advisors or elsewhere) in order to ascertain
the accuracy of such royalties, reports and Commercialization
efforts.  Such inspections shall be
during business hours and in a manner that does not unduly disrupt the Company’s
business.  The Company shall allow the
accountant to make any necessary copies of the records that the independent
accountant deems fit.

 

6.5           Audit
Interview Right

 

In
addition to the rights in paragraph 6.4, upon the written request of Canada,
the Company shall allow the independent accountant to interview key personnel
of the Company.  The independent
accountant, in its unfettered discretion, shall determine who the key personnel
are for the purposes of the interview. 
The Company acknowledges that the independent accountant may have more
than one interview with key personnel

 

6.6           Audit
Confidentiality

 

The
independent accountants retained by Canada shall inform Canada whether the
Company has complied with its obligations under the License
Agreement, including without limitation whether all royalties
and consideration due and payable were paid as prescribed to Canada and
marketing efforts and any inaccuracies in such payments.  Subject to the information contained in the
foregoing audit reports, the independent accountants shall neither reveal to
Canada any of the Company’s internal documentation or records, nor disclose any
notes or copies of the Company’s records made by the independent accountants,
excluding anything necessary for the report.

 

6.7           Duration

 

The
auditing and verification provisions herein shall continue for 10 years following
the expiry or termination of this License Agreement.

 

6.8           No
Waiver

 

Any
royalty payment or report accepted by Canada shall not constitute a waiver by
or estoppel against Canada concerning the contractual right to audit the
Company, and Canada shall continue to have the right to audit as prescribed in
the License Agreement.  

 

16

 

Furthermore,
an audit shall not preclude Canada from conducting subsequent audit or audits.

 

6.9           Discrepancy
Percentage

 

With
respect to the earned royalties (paragraph 5.2, Royalty Rate, paragraph
5.4.  Sub-License Fees) in the event of
any discrepancy uncovered by the audit, in excess of five percent (5.0%) of the
amounts paid during the audited period, the Company shall pay forthwith to
Canada both the discrepancy and the cost of the audit.  Overpayments shall be credited against the
next payment due by the Company to Canada.

 

6.10         Breach
of Records Audit Article Material

 

The
record and audit requirements are a material term of the License
Agreement.

 

7.0 REPORTS &
QUALITY CONTROL

 

7.1           Report
- Commercialization & Marketing

 

The
Company shall, on or before the 45th day following each calendar quarter,
during the term hereof and any renewal, submit to Canada written reports as to
the Company’s activities with respect to the exercise of Licensed
Rights during the preceding twelve (12) months.  Such reports shall contain:

 

7.1.1        a description of the steps
taken by the Company to develop and Commercialize
and sub-license;

 

7.1.2        a description of the
marketing conditions for the products or processes created by the exercise of
the Licensed Rights; and

 

7.1.3        a report an the production,
use and sales of the products or processes created by the exercise of the Licensed Rights.

 

7.2           Report
- Officer’s Certificate

 

The
report from the Company shall also contain a certificate from either the CEO or
CFO of the Company attesting to the fact that the Company has been using
commercially reasonable efforts to develop and Commercialize
the products or processes created by the exercise of the Licensed
Rights and that Commercialization
is a material and active element of the Company’s business.

 

7.3           Report
- Audited Statement 8 Remittances

 

In
addition to the requirements of paragraphs 7.1 (Report Contents General) and
paragraph 7.2 (Report - Officer’s Certificate), the report from the Company to
Canada shall also contain an audited statement, which includes, without
limitation:

 

17

 

7.3.1        an audited statement,
including the amount of the products or processes created by the exercise of Licensed Rights sold by the Company
and the amount of royalties or other consideration payable;

 

7.3.2        the names and addresses of
all Affiliates and sub-licensees to whom
the Licensed Rights has been
sub-licensed;

 

7.3.3        a full account of all
revenues generated by such Affiliates
and sub-licenses, including the amount of products or processes created by the
exercise of Licensed Rights sold;

 

7.3.4        a calculation of the amount
due to Canada for the royalties and consideration as stipulated herein as
required under paragraphs 2.5 (Sublicensing Conditions) and paragraph 2.6
(Sub-licensee Consideration); and

 

7.3.5        subject to paragraph 5.7
(Payment to Canada) any remittances then payable to Canada, payable to the
Receiver General for Canada, of the amount of royalties or other consideration
so payable.

 

7.4           Report—
Quality Control

 

In
addition to the foregoing, the report shall also contain internal audit
results, conducted quarterly, showing the quality standards of the products or
processes created by the exercise of the Licensed Rights
at all production sites and at the major sale or distribution sites.

 

7.5           Quality
Control Obligations

 

The
Company shall comply with all quality requirements for the products or
processes created by the exercise of the Licensed Rights
that are prescribed by:

 

7.5.1        Canada from time to time in
writing; and

 

7.5.2        any regulatory or statutory
authority.

 

7.6           Quality
Control Spot Audits by Canada

 

The
Company shall allow Canada to conduct spot audits of the Company production and
sales sites during operating hours anywhere in the Territory
to ensure compliance with the prescribed quality standards.

 

7.7           Quality
Control Spot Audits on behalf of Canada

 

Canada
may ask the Company to conduct spot audits of the Company production and sales
sites anywhere in the Territory
and to disclose those results to Canada within 15 days of each audit.

 

18

 

7.8           Annual
Report

 

The
Company shall, on or before the 31st day of May of each calendar year,
during the term hereof and any renewal, submit to Canada a copy of:

 

7.8.1        the Company’s certified
financial statements and evidence of renewal of the Company’s insurance policy under
section 13 of the License Agreement;

 

7.8.2        the Company’s annual reports
to shareholders; and

 

7.8.3        material revisions to the
Company’s business plan.

 

7.9           Annual
Face-To-Face Meeting

 

The
Company shall, on the 121st day of each calendar year, during the term of the License Agreement and any renewal,
meet face-to-face with Canada to provide a progress report on the activities
carried out by the Company under the License Agreement.

 

7.10         Material
terms

 

The
reporting and quality requirements and audit rights are a material term of the License Agreement.

 

8.0 OWNERSHIP OF
TECHNOLOGY / IMPROVEMENTS

 

8.1           Canada
Owns Licensed Rights

 

The
Company agrees and is estopped from alleging otherwise that:

 

8.1.1        the Licensed
Rights are vested in and are the sole property of Canada;

 

8.1.2        ownership and all rights
related to, connected with, or arising out of the foregoing, including, without
limitation:

 

8.1.2.2             Patents, Intellectual
Property, Confidential Information, copyright, the right to
produce, publish or cause to be produced, and all published information
material and documents;

 

8.1.2.3             the right to issue a
license;

 

are
vested in and are the sole property of Canada, and

 

8.1.3        the Company shall have no
rights to the foregoing except as may be expressly granted under this License Agreement, and the Company
shall not apply for any proprietary or other right and shall not divulge or
disclose, without the prior written consent of Canada, any information,
material or documents concerning the foregoing or make available in any way or
use the Licensed Rights, except as
expressly provided in the License Agreement.

 

19

 

8.2           No
Impeachment

 

The
Company shall neither impeach, contest or otherwise attack, directly or indirectly,
the validity, enforceability or ownership of the Patents
or any Intellectual Property rights
held by Canada, or Canada’s right, title and interest in and to the Licensed Rights nor assist, counsel
or procure any third party to do the same.

 

8.3           Inimical
Use of Confidential Information

 

The
Company shall not use any Confidential Information
obtained from Canada in the negotiation of the License
Agreement, under due diligence searches or otherwise related to
this License Agreement, in any manner
that either violates the Company’s rights and obligations under the License Agreement or is inimical to
the interests of Canada.

 

8.4           Improvements
- Ownership

 

Unless
expressly agreed to otherwise in writing by the Parties,
the ownership of any Improvement
made by or on behalf of a Party shall
immediately, after creation, vest exclusively in that Party.

 

8.5           Company
Improvements - Disclosure

 

The
Company shall disclose to Canada forthwith all Improvements,
innovations and discoveries developed or created by or on behalf of the
Company, solely or jointly with others (including Affiliates
and sub-licensees), which related to the Licensed Rights,
together with any Intellectual Property rights
residing therein.

 

8.6           Company
Improvements — License to Canada

 

The
Company hereby grants to Canada a personal, non-transferable, non-exclusive,
worldwide, perpetual, irrevocable, royalty-free and fully paid-up license for
the Improvements (including data and
reports related thereto), made by or on behalf of the Company under paragraph
8.4 (Improvements — Ownership) and disclosed to Canada under paragraph 8.5
(improvements — Disclosure) for the purposes set out in paragraph 2.2 (Carve
Out).  Further, Canada may sub-license
such Improvements for the purposes of
carrying out the purposes set out in paragraph 2.2 (Carve Out).

 

Termination
of the License Agreement shall not
terminate the foregoing license to Canada or any subsisting sub-licenses.

 

9.0 DISCLAIMERS

 

9.1           Estoppel
Statement/Disclaimer of Express / Implied Warranties

 

The
Company acknowledges that there is some question as to the integrity of
ownership of the Licensed Rights and Patents and the Company accepts
those risks.

 

20

 

The
Licensed Rights and Patents are provided to the Company
on an “as is” basis.  Canada makes no
warranties, representations or conditions, express or implied, of any nature,
and Canada disclaims all warranties, representations or conditions, for the Licensed Rights, the Patents, the Intellectual
Property or the Confidential Information
including, without limitation:

 

9.1.1                        merchantability;

9.1.2                        quality (either
as discussed or with respect to a sample / model);

9.1.3                        fitness for any
or a particular purpose:

9.1.4                        commercial
utility or practical purpose;

9.1.5                        susceptibility
of yielding valuable results or results are free of defects or otherwise
harmless;

9.1.6                        latent or other
defects;

9.1.7                        infringement or
non-infringement of Patents or other third party rights;

9.1.8                        conformity with
the laws of any jurisdictions; or

9.1.9                        fitness for the
Company’s corporate objectives (whether or not expressly or implicitly
communicated to Canada).

 

For
greater certainty, no information or advice given by Canada shall create a
warranty or representation or condition other than as expressly stated in the License Agreement.  The Company hereby accepts the Licensed Rights and the Patents “as is”, with all faults,
and the entire risk as to satisfactory quality, performance, accuracy and
effort is with the Company.  In no event
shall Canada be liable for any direct, indirect, incidental, special,
exemplary, or consequential damages (including, but not limited to, procurement
of substitute goods or services, loss of use, data or profits, or business
interruption) however caused and on any theory of liability, whether in
contract, strict liability, or tort (including negligence or otherwise) arising
in any way out of the exercise of the Licensed Rights
by the Company, its Affiliates or sub-licensees,
even if advised of the possibility of such damage.

 

9.2                               Disclaimer
of Statutorily Implied Warranties

 

No
legal or equitable warranties or conditions implied by law or convention under
any domestic, foreign or international legal regime, or from a course of
dealing or usage of trade, shall apply to the License
Agreement.  The Company
acknowledges this disclaimer and is estopped from relying on any such
representations, warranties or conditions against Canada.

 

9.3                               Confidential
Information Without Warranty / No Reliance

 

The
Company shall not rely in any way on the quality, accuracy or completeness of
any Confidential Information provided by
Canada under the License Agreement.  Any use of such Confidential Information shall be at
the Company’s sole risk and expense.  Any
Confidential Information provided to
the Company by Canada is without any warranty or guarantee or representation or
warranty of any kind whatsoever other than as expressly provided herein.

 

21

 

9.4                               No
Liability to Canada from Exercise of Rights

 

The
Company undertakes to use the Licensed Rights
and apply Confidential Information of
Canada entirely at its own risk and under its own responsibility, and that the
Company will have no recourse against Canada with respect to any consequences
of such application.

 

9.5                               Third
Party Representations

 

The
Company shall not represent to any Affiliate
or sub-licensee the existence of any warranty or condition concerning the Licensed Rights.

 

9.6                         Disclosure &
Due Diligence

 

The Company acknowledges that:

 

9.6.1                      Canada has made
full and frank disclosure of all facts the Company deemed relevant before
executing the License Agreement;

 

9.6.2                      The Company has
conducted a due diligence search of all matters relevant to the Licensed Rights, the Patents and the License
Agreement;

 

9.6.3                      Canada has made
all best efforts to identify the significant characteristics of the Licensed Rights and that Canada
makes no representation that all the characteristics both favorable and
unfavorable have been identified; and

 

9.6.4                      Canada is
either under no duty to warn the Company or the Company unconditionally waives
any such duty, about the Licensed Rights
or Commercialization.

 

10.0                        PATENT
PROTECTION & REGULATORY REQUIREMENTS

 

10.1                        Patent
Costs

 

The
Company shall pay all costs related to and maintaining Patents
(and shall reimburse Canada for any of these costs that Canada may pay during
any term of the License Agreement), as they
are incurred, and within thirty (30) days of being invoiced for such costs.

 

10.2                        Right
to Patent

 

Nothing
in the License Agreement shall limit
or restrict Canada from seeking to patent Improvements
made by Canada.

 

10.3                        The
Company Shall Obtain Regulatory Permissions

 

The
Company shall use commercially reasonable efforts to obtain any authorizations,
permits, certificates or other regulatory permissions which may be required in
order for the Company to legally carry out all of its activities under the License Agreement, 

 

22

 

including
but not limited to Commercialization, at the
Company’s sole cost and expense without right of set-off.

 

10.4                        Her
Majesty Not Obligated

 

Nothing
in the License Agreement shall
obligate any emanation of Her Majesty the Queen in Right of Canada to grant any
required authorizations, permits, certificates or other regulatory
permissions.  Conversely, there is no
implication by the execution of the License Agreement
that the Company will be granted any required authorization, permits,
certificates or other regulatory permissions necessary for the effective
Commercialization of the Licensed Rights.

 

11.0                        CONFIDENTIALITY
/ FIDUCIARY OBLIGATIONS &

EQUITABLE REMEDIES

 

11.1                        Existing
Confidentiality Agreements

 

The
Confidentiality Agreements entered
into by the Parties on May 1, 2007, and November 1, 2008,
respectively, shall end on the Execution Date
of the License Agreement.  However, all rights and obligations of the
Parties under the Confidentiality Agreements
that expressly or by their nature survive termination of those agreements shall
continue in full force and effect until they expressly or by their nature
expire.

 

11.2                        Confidentiality
Obligations

 

Commencing
on the Execution Date of this License Agreement, Confidential Information disclosed
by one Party to the other Party under this License Agreement shall be:

 

11.2.1                held in confidence and in
trust by the receiving Party;

 

11.2.2                used by the receiving Party exclusively for the purposes
authorized under the License Agreement
and for no other purpose whatsoever;

 

11.2.3                safeguarded by the receiving
Party using all reasonable measures
and taking such action as may be appropriate to prevent the unauthorized
access, use or disclosure of the Confidential Information;
and

 

11.2.4                not disclosed to third
parties without the prior written consent of the disclosing Party.

 

11.3                        No
Waiver of Privilege

 

Each
Party acknowledges that the Confidential Information of the
disclosing Party is the property of the
disclosing Party or a third party and
that none of the latter intend to or do waive any rights, title or privilege
they may have in respect of any of the Confidential Information.

 

23

 

11.4                        Common
Law Duty of Confidentiality

 

Nothing
in this License Agreement derogates,
displaces or otherwise diminishes the common law or equitable duty of
confidentiality vested in the receiving Party
concerning the Confidential Information.

 

11.5                        Confidentiality
Exclusions

 

Article 11.2
(Confidentiality Obligations) does not apply to information which, even if it
may be marked “confidential’, is not really confidential, in that

 

11.5.1                IN PUBLIC DOMAIN - the
information was legally and legitimately in the public domain through no act or
omission of the receiving Party at
the time of disclosure by the receiving Party;

 

11.5.2                PUBLISHED - the information
was legally and legitimately published or otherwise becomes part of the public
domain through no act or omission of the receiving Party
at the time of disclosure by the receiving Party;

 

11.5.3                ALREADY KNOWN TO THE
RECEIVING PARTY - the information was already in the possession of the
receiving Party at the time of
disclosure and was not acquired by the receiving Party,
directly or indirectly, from the disclosing Party
(as shown by documentation sufficient to establish the timing of such
possession), and the receiving Party is
free to disclose the information to others without breaching any contractual or
trust obligations or common law duties;

 

11.5.4                THIRD PARTY DISCLOSES - the
information becomes available from an outside source who has a lawful and
legitimate right to disclose the information to others, and the receiving Party is free to disclose the
information to others without breaching any contractual or trust obligations or
common law duties;

 

11.5.5                INDEPENDENTLY DEVELOPED -
the information was independently developed by the receiving Party without any of the Confidential Information being
reviewed or accessed by the receiving Party (as
shown by documentation sufficient to establish the timing of such development);
or

 

11.5.6                JUDICIAL/ADMINISTRATIVE
ORDER - the information was released due to a compulsory order under a judicial
process or under a compulsory regulatory (including securities) requirement,
none of which was invited by, or consented to, by the receiving Party and the receiving Party made all reasonable efforts to
secure a court order to limit production, use and disclosure of the information
to the narrowest class practical under the circumstances.

 

11.6                        Secure
Location

 

Each
Party shall keep the Confidential Information of the
other Party in a secure location
accessible only to its employees specifically authorized to have access
pursuant to this License Agreement.  Each Party shall
ensure that its employees complies with the 

 

24

 

terms
and conditions of this License Agreement
and shall enter into agreements with such employees if necessary to give effect
to this obligation.

 

11.7                        Return
of Confidential Information

 

If
this License Agreement expires or is
terminated, the Parties shall return to each
other the Confidential Information
disclosed to them under this License Agreement
and any notes, reports and other materials prepared by the receiving Party from the disclosing Party’s Confidential
Information except that Canada shall be entitled to retain one
copy of such records for the purposes of meeting Canada’s obligations under the
federal laws of Canada and for the purposes of paragraph 8.6 (Improvements -
License to Canada).

 

11.8                        Confidential
Information is Proprietary

 

The
Confidential Information of each Party is and shall remain the
exclusive property of that Party or
third parties and the receiving Party shall
not claim any rights, title, interest or ownership in the Confidential
Information.  The
receiving Party shall not contest any
such rights, title, interest or ownership.

 

11.9                        Legal
and Equitable Remedies

 

Should
a Party commit or threaten to commit a
serious or material breach of its confidentiality or fiduciary obligations
under this Article 11, then the other Party may
pursue any and alt legal and equitable remedies, including without limitation,
injunctive relief, accounting for profits, redistribution, damages,
constructive trust and disgorgement. 
Disgorgement means, for the purposes of the License
Agreement, the ejection of all benefits gained by the receiving Party, traceable to the material
breach, notwithstanding that such disgorgement may exceed the damages directly
suffered by the disclosing Party or
deprivation suffered by the disclosing Party for
such breach.

 

11.10                 No
Hiring of Canada’s Employees

 

The
Company shall not:

 

11.10.1                                  solicit, hire,
retain or secure;

 

11.10.2                                  directly or
indirectly, including without limitation, the use of consultants, Affiliates or third parties;

 

11.10.3                                  any of the
agents, servants or employees of Canada;

 

11.10.4                                  which agents,
servants or employees are employed or retained in connection with, or whose
responsibilities relate in whole or in part, to the Confidential
Information, the Licensed Rights
or the Patents; or helped produce or
create the Confidential Information, the
Licensed Rights or the Patents;

 

to
accept employment with the Company of any of its Affiliates,
unless

 

25

 

11.10.5                            Canada grants
in advance its written permission to such a solicitation or the employment of
such a person; or

 

11.10.6                            [*]  have elapsed from the Execution Date.

 

11.11                 Exemption

 

The
prohibition in paragraph 11.10 (No Hiring of Canada’s Employees) does not apply
to general solicitations of employment issued by the Company and any hiring
resulting from such solicitations that are:

 

11.11.1                            not directed
towards the employees of Canada; and

 

11.11.2                            do not involve
the Confidential Information, the Licensed Rights or the Patents.

 

11.12                 Contact
Only Under License Agreement

 

The
Parties shall have no discussions,
correspondence or other contact with the other Party,
its licensees, confidants or any person concerning the License
Agreement, except through the designated representative of the
other Party or any delegates
identified in writing by the designated representative from time to time.

 

11.13                 Terms
Of Agreement Confidential But Not Existence of Agreement

 

The
Parties agree that terms of this License Agreement are confidential
but not its existence.  The terms of this
License Agreement shall not be
disclosed by a Party unless disclosure is required by law or if the other Party agrees to the disclosure in
writing prior to disclosure.

 

12.0                        CORPORATE
REPRESENTATIONS & WARRANTIES

 

12.1                        The
Company Incorporated & Authorized 8 Bound

 

The
Company represents and warrants to Canada that as of the Execution
Date:

 

12.1.1                            ABILITY

 

it
can Commercialize, and the Company has
or will have the necessary access to funds, resources, knowledge, facilities
and personnel to perform its obligations under the License
Agreement, including to use commercially reasonable efforts to Commercialize;

 

12.1.2                            AUTHORIZATION

 

it
is authorized and has the corporate power and authority to negotiate, execute,
comply with and satisfy its obligations, without qualification, under the License Agreement;

 

26

 

12.1.3                            INCORPORATION
JURISDICTION

 

it
has been duly incorporated and organized under the laws of the state of
Delaware and is validly existing under the laws of Iowa;

 

12.1.4                            EXTRA-PROVINCIAL
REGISTRATION

 

it
is duly qualified, licensed or registered to carry on business in the Province
or State of Delaware.

 

12.1.5                            ENFORCEABLE

 

it
is bound by the License Agreement, upon
execution, and the License Agreement constitutes
a legal, valid and binding obligation on the Company, enforceable against the
Company in accordance with the terms of the License
Agreement, except as those terms may be limited by applicable
bankruptcy laws and general principles of equity,

 

12.1.6                            LITIGATION

 

it
has no knowledge of any legal proceeding or order pending against or, to the
knowledge of the Company, threatened against or affecting, the Company or any
of its properties or otherwise that could adversely affect or restrict the
ability of the Company to consummate fully the transactions contemplated by
this License Agreement (including without
limitation the Commercialization) or that in
any manner draws into question the validity of this License
Agreement;

 

12.1.7                            VERACITY OF
STATEMENTS

 

no
representation or warranty by the Company contained in this License Agreement and no statement
contained in any certificate, schedule or other instrument furnished to Canada
pursuant hereto or in connection with the transactions contemplated hereby,
contains any untrue statement of a material fact or omits to state a material
fact;

 

12.1.8                            INCONSISTENT
AGREEMENTS / OBLIGATIONS

 

it
has not given any understanding, express or implied, to any third party which
would:

 

12.1.8.2                                 preclude the
Company from fulfilling its obligations under the License
Agreement; or

 

12.1.8.3                                 cause the
Company to breach an agreement with a third party;

 

27

 

12.1.9                            NO MARCH IN
RIGHTS

 

it
is not subject any “march in” or third party rights, (contractual or statutory,
contingent or vested) which would give that third party any rights to the Licensed Rights not otherwise
explicitly described in the License Agreement;
and

 

12.1.10                      NO BREACH OF
THIRD PARTY AGREEMENTS

 

its
execution of the License Agreement does not
contravene its constituent documents or any law, regulation or official
directive or any of its obligations or undertakings by which it or any of its
assets are bound or cause a limitation on its powers or the powers of its
directors to be exceeded.

 

12.2                        Canada
Authorized

 

Canada
represents and warrants to the Company as of the Execution
Date:

 

12.2.1                  AUTHORIZATION

 

Canada
has the power and authority to negotiate, execute and comply with the License Agreement, subject to all
applicable laws and the royal prerogative; and

 

12.2.1.2                                 no further
action is required by or in respect of any governmental or regulatory
authority; and

 

12.2.1.3                                 the License Agreement is legal, binding
and enforceable in accordance with its terms.

 

13.0                        INDEMNITY, INSURANCE
AND LIABILITY ALLOCATION & CAPS

 

13.1                        The
Company’s Indemnification

 

The
Company shall;

 

13.1.1                indemnify; and

 

13.1.2                save harmless;

 

Canada
(and her employees, servants and agents),

 

13.1.3                from and against all claims,
demands, losses, penalties, damages, costs, (including reasonable solicitor and
own-client costs and expert witness costs), actions, suits or other proceedings
whatsoever, whether groundless or otherwise,

 

13.1.4                brought or prosecuted in any
manner which heretofore or hereafter may be made by a third party against
Canada or her employees, servants and agents;

 

13.1.5                however and whenever arising
out of, relating to, occasioned by or attributed to,

 

28

 

a)                                    any acts or
conduct (including, without limitation, omissions, misrepresentations, errors
and offences) of the Company, its employees, servants, agents, advisors, sub-licensees
or Affiliates (whether by reason of
negligence or otherwise) in the performance by the Company of the provisions of
the License Agreement or any activity
undertaken or purported to be undertaken under the authority or pursuant to the
terms of the License Agreement, including
without limitation, exercise of the Licensed Rights
and Commercialization;

 

b)                                   any
infringement or alleged infringement by the Patents,
the Licensed Rights or Licensed Products of proprietary
rights of any including, without limitation, patent, trade-mark, copyright or
trade secret rights;

 

c)                                    any claim the Patents, the Licensed
Rights or the Licensed Products
or any aspect or use thereof by the Company infringes or constitutes
misappropriation of the intellectual property rights of any third party; and

 

d)                                   any claim or
demand against the Patents, the Licensed Rights, the Licensed Products or the interest of
Canada or the Company therein.

 

Further,
the Company shall not third party Canada for any such claims, actions, suits or
other proceedings taken solely against the Company and the Company hereby
expressly waives any rights it has against Canada for claims of infringement.

 

13.2                        Indemnity
Separate / Continuing

 

The
foregoing indemnity is a continuing obligation, separate and independent from
the other obligations of the Company and survives termination of, expiration
of, or the acceptance of repudiation of the License
Agreement.  It is not
necessary for Canada to incur expense or make payment before enforcing a right
of indemnity conferred hereunder.

 

13.3                        Insurance

 

The
Company shall ensure that both the Company and each of its Affiliates
and sub-licensees shall obtain and maintain, throughout the term of the License Agreement (and any renewal
thereof) or duration of the sub-licenses (as the case may be), comprehensive
general liability insurance for any and all claims, actions, liabilities and
expenses resulting from the Commercialization
of the License Rights.

 

13.3.1                INSURANCE COMPANY

 

The
insurance policy shall be obtained from a qualified insurance company licensed
to do business in the applicable jurisdictions.

 

13.3.2                NAMED INSURED

 

The
insurance policy shall name Her Majesty the Queen in Right of Canada and Her
employees, servants and agents as “additional insureds”.

 

29

 

13.3.3                LIMITS

 

As
of the Execution Date, the insurance
policy shall include commercial general liability insurance, and shall have
monetary limits in the amount not less than one million dollars ($1,000,000) for
each single occurrence or claim. 
Following the submission of an Investigational New Drug covering a
Licensed Product and prior to the beginning of a Phase 1 Clinical Study, the
insurance policy shall include commercial general liability insurance, that
includes products liability insurance, and shall have monetary limits in an
amount not less than five million dollars ($5,000,000) for each single
occurrence or claim.  The minimum amount
of insurance coverage required under this License Agreement
shall not be construed as a limit of liability.

 

13.3.4                TERMINATION NOTICE

 

The
insurance policy shall provide for thirty (30) business days written notice by
the insurer to the Company and Canada by registered or certified mail in the
event of any modification, cancellation or termination of the insurance policy.

 

13.3.5                COPY

 

The
Company shall provide Canada a copy of the insurance policy not later than 30
days alter execution of the License Agreement,
and thereafter upon the written request of Canada.  This obligation shall apply each time the
monetary limits are increased pursuant to clause 13.3.3, in which case the copy
shall be provided not later than 30 days after the monetary limits in the
insurance policy are increased.  This
obligation shall survive termination or expiration of the License
Agreement.

 

13.3.6                INSURANCE UNAVAILABLE

 

If
insurance required to meet the monetary limits in clause 13.3.3 is unavailable,
the Parties shall review the situation,
and Canada may elect to either allow the Company to obtain the insurance that
is available, or alternatively terminate the License
Agreement.

 

13.4                        Canada’s
Liability Cap

 

Canada’s
liability for:

 

13.4.1                breach of the
representations, conditions or warranties contained herein or any of the other
provisions of the License Agreement or any
other breach giving rise to liability, including a breach of a condition or
fundamental term or fundamental breach or breaches; or

 

13.4.2                in any other way arising out
of or related to the License Agreement;
or

 

30

 

13.4.3                for any cause of action
whatsoever and regardless of the form of action (including breach of contract,
trust, strict liability, tort [*], or any other legal or equitable theory);

 

shall
be limited to the Company’s actual direct (immediate and foreseeable at the
time of negotiation to both Parties),
provable damages in an amount not to exceed in the aggregate a sum equal to or
less than the net consideration received by Canada from the Company under
paragraph 5.2 (Royalty Percentage Rate) for the time period commencing from the
Execution Date up to and including
the date of judicial judgment or arbitrator’s decision.

 

13.5                        Excluded
Heads of Damage

 

Canada
shall not be liable to the Company, its employees, servants, agents,
successors, assigns, Affiliates
or sub-licensees for damages in respect of:

 

13.5.1                incidental, indirect,
special, punitive, exemplary damages;

 

13.5.2                any economic loss,
consequential damages, relational loss, including but not limited to lost business
revenue, lost profits, business interruption, failure to realize expected
savings, loss of data, loss of business opportunity suffered by the Company or
any claim whatsoever and whenever made against the Company by any other party;

 

(whether
grounded in tort [*], strict liability, contract, trust or otherwise,) even if:

 

13.5.3                Canada was advised of the
possibility of such damages, or

 

13.5.4                the damages encompassed by
subparagraphs 13.5.1 and 13.5.2 were foreseeable by Canada, or

 

13.5.5                such damages resulted from a
fundamental breach of the License Agreement.

 

Further,
Canada shall have no duty to warn the Company for matters arising directly or
indirectly under the License Agreement.

 

13.6                        No
Actions Against Employees

 

The
Company acknowledges and estopped from and waives any rights the Company might
have to commence and prosecute any action whatsoever, regardless of form or
grounds (including without limitation negligence, misrepresentation, fiduciary,
deceit) against any of Canada’s employees, servants, agents or officers,
arising out of any

 

13.6.1                  claimed breach of the License Agreement;

13.6.2                  transactions under the License Agreement;

13.6.3                  negotiations leading to the License Agreement; or

13.6.4                  in any other way related to
the License Agreement.

 

31

 

For
greater clarity, the Company’s remedies for any breach of or Dispute under the License Agreement, lies only against
Canada, and only within the aforementioned parameters prescribed by the License Agreement.

 

13.7                        Notifications

 

Canada
shall notify the Company of any claim that falls within the parameters of the
respective indemnification obligations as soon as practical.  In any case such notice shall be made
forthwith upon notice that a claim may be prosecuted or a cause of action
exists.

 

14.0                        INFRINGEMENT

 

14.1                        Third
Party Suit

 

Subject
to Article 13 (Indemnification), in the event of any threatened or actual
suit against the Company in consequence of the exercise of any rights and
licenses granted herein, the Company shall; promptly inform Canada and the Parties will Jointly decide on the
steps to be taken in the circumstances. 
In any event, the Company will always have the sole right to defend
itself as it determines against any suit or other action brought against the
Company or its employees or agents.

 

14.2                        Infringement
Uncovered

 

Each
Party will notify the other promptly
in writing when any infringement of the Licensed Rights
or Patents is uncovered or suspected.

 

14.3                        Company
May Sue

 

The
Company shall have the right to enforce the Patents
against any infringement or alleged infringement thereof, and shall at all
times keep Canada informed as to the status thereof.  Subject to Canada’s prior written approval
(which will not be unreasonably withheld), the Company may, at its own expense,
institute suit against any such infringer or alleged infringer and prosecute
such suit in a manner consistent with the terms and provisions hereof.  Canada shall reasonably cooperate in any such
litigation at the Company’s expense, and the Company shall keep Canada apprised
in a timely manner of all litigation activities.  In any litigation under this article, the
Company shall not have the right to settle or otherwise compromise Canada’s
position as a licensor or owner of the Patents
without Canada’s prior written consent.

 

14.4                        Distribution
of Company’s Recovery

 

In
the event of a recovery by the Company of punitive and non-punitive damages
(net of legal fees and out of pocket costs of the action) under paragraph 14.3
for royalty-bearing products, the Company shall pay to Canada [*]  of such recovery.

 

32

 

14.5        Canada
May Sue

 

If
the Company elects not to enforce the Patents as
to any infringement or alleged infringement thereof, then the Company shall so
notify Canada in writing within one (1) month of receiving notice that an
infringement exists, and Canada may, in its sole judgment and at its own
expense, take steps to enforce the Patents
against such infringement or alleged infringement and control, settle, and
defend such suit in a manner consistent with the terms and provisions hereof,
and recover for its own account any damages, awards or settlements resulting
therefrom.

 

15.0        TERMINATION

 

15.1        By
Canada for Cause

 

The
License Agreement, at the option of
Canada, without prejudice to any other rights in law of equity held by Canada
(including any right of indemnity), may be terminated forthwith by Canada
without compensation to the Company if:

 

15.1.1     INSUFFICIENT EFFORTS

 

The
Company fails to use its commercially reasonable efforts to develop or Commercialize and does not cure such
failure within ninety (90) days of written notice from Canada;

 

15.1.2     NO PAYMENT

 

The
Company fails to make any payment owed to Canada under the License
Agreement and does not make such payment within sixty (60) days
of the due date;

 

15.1.3     BREACH OF CONFIDENTIALITY

 

The
Company uses or discloses Confidential Information
of Canada in a manner inconsistent with its obligations under the License Agreement or fails to
safeguard the Confidential Information of
Canada;

 

15.1.4     BREACH OF BUSINESS PLAN

 

The
Company fails, neglects, refuses or is unable to comply with the business plan
created and submitted under paragraph 4.1 (Business Plan);

 

15.1.5     QUALITY CONTROL &
AUDIT

 

The
Company refuses, neglects or fails to meet quality standards or allow access
for quality audit purposes contrary to paragraph 7.0 (Reports &
Quality Control) or provide or allow the audit of the reports and records as
required under Article 6.0 (Records and Audit);

 

33

 

15.1.6     CEASES BUSINESS

 

The
Company ceases to actively carry on business;

 

15.1.7     MULTIPLE BREACHES

 

The
Company breaches three or more provisions of the License
Agreement within any consecutive twelve (12) month period,
notwithstanding that such breaches were subsequently cured;

 

15.1.8     CROSS-DEFAULT

 

The
Company breached a provision of another agreement with Canada that was executed
with the Public Health Agency of Canada, and that breach occurred during the
term of the License Agreement;

 

15.1.9     CRIMINAL CONVICTION

 

The
Company was convicted of a criminal or regulatory offence, the nature of which
directly or indirectly affects the ability of the Company to conduct itself
hereunder or to Commercialize in an effective
and timely manner, or otherwise prejudices Commercialization;

 

15.1.10   GENERAL BREACH

 

The
Company commits or permits a breach of any of the other terms and conditions
herein contained and does not remedy such breach within sixty (60) days after
being required in writing to do so by Canada;

 

15.1.11     REPUDIATES

 

The
Company expressly or implicitly repudiates the License
Agreement by refusing or threatening to refuse to comply with
any of the provisions of the License Agreement.

 

15.2        Automatic
Termination

 

The
License Agreement and all rights
granted to the Company pursuant to the License Agreement
shall immediately terminate and revert to Canada by operation of contract,
without prejudice to any other rights in law of equity held by Canada
(including any right of indemnity) and without compensation to the Company,
effective the business day prior to the applicable triggering event, namely if:

 

15.2.1     ASSIGNMENT

 

The
Company assigns the License Agreement without the
prior written consent of Canada, contrary to the provisions of paragraph 18.2
(No Assignment Without Consent); or

 

34

 

15.2.2      BANKRUPTCY

 

The
Company becomes bankrupt or insolvent or otherwise

 

15.2.2.2          has a receiving or winding
up order made or sought against it;

 

15.2.2.3          has a meeting proposed or
convened, seeking or actually passing a resolution to appoint a trustee or
official manager;

 

15.2.2.4          has a receiver,
receiver-manager, liquidator, trustee in bankruptcy, custodian or any other
officer with similar powers appointed for the Company or such an order is
sought;

 

15.2.2.5          has any or all of its assets
seized or otherwise attached for the benefit of creditors;

 

15.2.2.6          proposes or convenes a
meeting to seek or passes a resolution for winding up;

 

15.2.2.7          takes the benefit of any
statute, at the time in force, relating to bankrupt or insolvent debtors for
the orderly payment of debts;

 

15.2.2.8          makes a general assignment
for the benefit of creditors;

 

15.2.2.9          submits a proposal or
arrangement under any debtor/creditor legislation;

 

15.2.2.10        is the subject of a petition
or files an assignment under the Bankruptcy Act or any successor
legislation; or

 

15.2.2.11        does or attempts anything
analogous to the aforementioned events or having a substantially similar effect
to any of the aforementioned events under the laws of any jurisdiction.

 

15.3                        Termination
Not A Penalty

 

The
Company acknowledges, and is estopped from alleging otherwise, that the
termination provisions in paragraph 15.2 do not constitute a penalty, and are
otherwise fair, just and proportional given:

 

15.3.1      the nature of the Parties;

15.3.2      their respective mandates
and corporate objectives;

15.3.3      the allocation of risks
under the License Agreement;

15.3.4      the goals of the Parties;

15.3.5      nature of the Licensed Rights; and

15.3.6      the consequences to Canada
if the Company commits the aforementioned breaches.

 

35

 

15.4        Procedure

 

Termination
shall be implemented by a notice effective as of the date slated therein, but
termination shall be subject to paragraph 15.6 (The Company’s Duties on
Termination) and be without prejudice:

 

15.4.1      to the right of Canada to
sue for and recover any royalties or other sums due Canada; and

 

15.4.2      to the remedy of either Party in respect of any previous
breach of the License Agreement.

 

15.5        Effect
on Sub-licensees

 

All
sub-licenses, including those granted to Affiliates,
shall terminate with the License Agreement.

 

15.6        The
Company’s Duties on Termination or Expiration

 

A)
Upon termination of the License Agreement
by Canada, the Company shall at its own cost:

 

15.6.1             return immediately to Canada
all Licensed Rights and Confidential Information of Canada,
including copies thereof;

 

15.6.2             certify in writing to Canada
within thirty (30) days of termination, that to the best of the Company’s
knowledge, all of the Confidential Information
(including copies) of Canada has been returned;

 

15.6.3             deliver a detailed statement
to Canada of the inventory of the products made from the exercise of the Licensed Rights then existing, but
not sold by the Company, as of the date of expiration or termination;

 

15.6.4             provide Canada the right of
first refusal to purchase from the Company any products made from the exercise
of the Licensed Rights inventory at
fair market value;

 

15.6.5             dispose of any remaining
products made from the exercise of the Licensed Rights
in inventory as specified by Canada subject always to any obligations under Article 5.0
(Fees & Royalties);

 

15.6.6             pay all costs due under the License Agreement either by the
Company on its behalf or a sub-licensee, up to and including the termination
date, within thirty (30) days of the termination;

 

15.6.7             pay all costs due under the License Agreement, subsequent to the
termination, for any products made from the exercise of the Licensed Rights sold after
termination, within thirty (30) days of the liability being incurred;

 

36

 

15.6.8             grant back to Canada any
technology rights, clinical or research data arising from the Licensed Rights or otherwise under
the License Agreement;

 

15.6.9             assign to Canada (or her
nominee) any equities, goodwill, or other rights which the Company has or
alleges to have acquired in the Licensed Rights
or derived in the Commercialization.  The Company shall also execute such further
documentation as Canada may reasonably request m order to confirm such
assignment;

 

15.6.10           pay immediately to Canada
any royalties, fees, reimbursements or other financial obligations irrespective
of the fact such monies are owed, but for the termination or expiration, not
yet payable; and

 

15.6.11           assign or transfer for [*]
in total consideration, any and all authorizations, permits, certificates or
other regulatory permissions obtained in order to Commercialize, to any third
party identified by Canada or to Canada itself, within ninety (90) days of
termination or expiration, unless otherwise requested by Canada.

 

B)
Upon expiration of the License Agreement,
the Company shall at its own cost, perform the duties set out in sections
15.6.1 to 15.6.8.  Further, upon
expiration, the Company shall grant to Canada the right to exercise an option
to negotiate with the Company an agreement dealing with the matters set out in
sections 15.6.9 to 15.6.11.  The Parties shall negotiate the
agreement in good faith.  The agreement
shall contain mutually acceptable terms and conditions and the consideration
shall be commercially reasonable.

 

15.7        Surviving
Obligations

 

All
obligations of the Parties which expressly or by
their nature survive termination or expiration, shall continue in full force
and effect subsequent to and notwithstanding such termination or expiration,
until they are satisfied or by their nature expire.  For greater clarity, and without restricting
the generality of the foregoing, the following provisions survive termination
or expiration:

 

15.7.1      Paragraph 2.2 (Carve Out);

15.7.2      Article 5.0 (Fees and
Royalties);

15.7.3      Article 6.0 (Records &
Audit);

15.7.4      Paragraphs 8.4 to 8.6
(Improvements — Ownership, Company Improvements -Disclosure, Company
Improvements - License to Canada);

15.7.5      Article 11.0
(Confidentiality / Fiduciary & Equitable Remedies);

15.7.6      Article 13.0 (Indemnity, Insurance
and Liability Allocation & Caps); and

15.7.7      Paragraph 15.6 (The Company’s
Duties on Termination or Expiration).

 

37

 

16.0        ALTERNATE DISPUTE RESOLUTION
(ADR)

 

16.1        Negotiations

 

16.1.1      INFORMAL NEGOTIATIONS

 

If
a Dispute arises between the Parties, then:  within 6 months from when the allegedly
aggrieved Party knows or should know of
the Dispute, the contact individuals in Article 20.1
(Notice) shall,

 

16.1.1.2          contact their counterpart,
and attempt bona fide efforts to diligently resolve the Dispute
through amicable negotiations:

 

16.1.1.3          provide full, frank and
timely disclosure of all relevant facts, information and documents to
facilitate those negotiations;

 

16.1.1.4          resolve the Dispute within 7 days;

 

16.1.1.5          reduce the Dispute to writing, and if the
contact persons cannot agree on the wording of the Dispute,
both contact persons shall submit to each other their written version of the Dispute.

 

16.1.2      FORMAL NEGOTIATIONS

 

If
the Parties are unable to resolve the Dispute within fourteen (14)
calendar days from the receipt by the other Party
of the written version of the Dispute,
then within the following thirty (30) days the Dispute shall be referred to the
Chief Public Health Officer, on behalf of Canada, and to the CEO, on behalf of
the Company (or their directly reporting designates), to negotiate a resolution.

 

16.1.2.2          These individuals may not
delegate, substitute or direct, surrogates for them at these negotiations.

 

16.1.2.3          These individuals shall meet
in person to negotiate and the Parties
shall bear their own costs.

 

16.1.2.4          Unless otherwise agreed, the
meetings shall alternate between Company, HQ, and Canada, HO, commencing in
Ottawa, Ontario, for the first meeting for the first Dispute.  There shall be one meeting only per Dispute, which meeting shall not
exceed one (1) business day in length.

 

16.1.2.5          The Parties
may bring no more than two consultants to a meeting.  The two consultants shall not have a right of
audience or otherwise to negotiate the Dispute.

 

38

 

16.2        Mediation

 

If,
within thirty (30) days following the close of the meeting under paragraph
16.1.2 (Formal Negotiations), the Parties
have not succeeded in negotiating a resolution, then the Parties
shall jointly submit the Dispute to
mediation.

 

16.3        Skip
Mediation - Direct to Arbitration

 

If
the Parties cannot agree to jointly
submit the Dispute to mediation, then
either Party may submit the Dispute to binding arbitration.

 

16.4        Mediation
Process

 

The
Parties shall

 

16.4.1     APPOINTMENT OF MEDIATOR

 

appoint
a mutually acceptable mediator with sixty (60) days from the close of the
formal negotiation meeting under sub-paragraph 16.1.2 (Formal Negotiations);

 

16.4.2     GOOD FAITH EFFORTS

 

participate
in good faith in the mediation and negotiations related thereto;

 

16.4.3     EMPOWERED REPRESENTATIVES

 

representatives
sent to the mediation shall be empowered or have sufficient delegated authority
to resolve, compromise, negotiate or settle the Dispute
submitted to mediation, without seeking further instructions or approvals from
any superiors or committees / corporate structures, unless the nature,
seriousness or financial quantum of the Dispute by
law or corporate policies or practices requires approval from the respective
corporate or government structure.  In
such event, such approval shall be obtained within five (5) business days
of the proffer of any settlement offer;

 

16.4.4     COSTS

 

bear
the costs of the mediation equally, except that each Party
shall bear its own personal costs of the mediation;

 

16.4.5     FULL DISCLOSURE

 

a
full, frank and timely manner all relevant facts, information and documents to
facilitate the mediation; and

 

16.4.6     LOCATION

 

The
mediation shall take place in the city that was not the site of the formal
negotiations for the Dispute.

 

39

 

16.5        Unsuccessful
Mediation —Remit to Arbitration

 

The
Dispute shall be referred to binding
arbitration by either or both Parties if
the Parties are not successful in
resolving the Dispute through mediation.

 

16.6        Arbitration
- Structure

 

After
negotiation and if applicable, mediation), any subsisting Dispute
between the Parties, shall be referred to
arbitration by a written submission signed by either Canada or the Company.

 

16.6.1          FORUM LAWS PROCEDURAL RULES

 

The
arbitration tribunal shall be governed by the UN Commercial Arbitration Code,
referred to in the Commercial Arbitration Act, R.S.C. 1985, c.C-34.6 (“Code”).

 

16.6.2          NUMBER OF ARBITRATORS

 

The
arbitration tribunal shall consist of one arbitrator chosen by the Parties.

 

16.6.3          ISSUE BEFORE ARBITRATOR

 

The
scope of the arbitration shall be limited to the resolution of the Dispute submitted to arbitration.

 

16.6.4          APPLICABLE SUBSTANTIVE LAW

 

The
arbitration tribunal shall decide the Dispute
(including limitations, set-off claims) in accordance with the laws in force in
the Province of Ontario and any applicable federal laws.

 

16.6.5          NO EQUITY

 

The
arbitration tribunal shall not be authorized to decide ex aequo et
bono or as amiable compositeur.

 

16.6.6          ARBITRAL INTERIM ORDERS

 

Subject
to subparagraph 16.6.5 (No Equity) the arbitration tribunal shall have all the
powers of a court at law or in equity, including the power to make interim
orders, orders of injunction (either mandatory or prohibitory), rectification,
expungement and orders for interest. 
However in no case will the final decision breach the strictures of
subparagraph 16.6.5 (No Equity).

 

16.6.7          LOCATION

 

The
proceedings shall take place in the city that was not the site of the mediation
(or if there was no mediation, in the city that was not the site of the
negotiation meeting), unless the Parties
agree otherwise.

 

40

 

16.6.8          LANGUAGE

 

The
language used in the proceedings shall be English.

 

16.6.9          NOTICES

 

All
written communication shall be delivered to the Parties
hereto in the manner provided for in Article 20.1 (Notice).

 

16.6.10        COSTS

 

The
costs of the tribunal’s fees and expenses shall be shared equally by the Parties.  The Parties
shall bear their own costs except that the losing Party
shall pay all costs, fees, levies and Taxes
arising from and necessitated by the enforcement of the arbitration tribunal’s
award, including, without limitation, registration enforcement charges or other
judicial levies.

 

16.7        Emergencies
/ Judicial Jurisdiction

 

The
Parties are not precluded from
bringing an application to a Court having jurisdiction for interim or
interlocutory relief, in law or in equity, including, without limitation,
injunctive relief, if such relief is urgently required to preserve the rights
or property of either or both of the Parties,
pending the final determination of those rights in a subsequent arbitral
proceeding as contemplated in this Article.

 

16.8        Final &
Binding

 

Subject
to the Code, the Parties hereto agree that the
award and determination of the arbitration tribunal shall be:

 

16.8.1     final and binding on both Parties;

 

16.8.2     without right of appeal;

 

16.8.3     the exclusive remedy between
the Parties, regarding any claims,
counterclaims, issues or accountings presented or pled to the arbitration
tribunal, and

 

the
judgment upon the award rendered by the arbitration tribunal may be entered in
any Court having jurisdiction thereof or having jurisdiction over either of the
Parties.

 

16.9        Arbitral
Decision Deadline

 

The
arbitration tribunal retainer shall contain the obligation that the arbitration
tribunal render a written decision with reasons within thirty (30) days from
the close of the hearing or submission of written argument.

 

16.9.1     If the facts and law are
either too complicated or voluminous to allow a properly considered decision
within thirty (30) days, then the decision shall be rendered in not less than
one hundred and eighty (180) days, but the arbitrator shall notify the 

 

41

 

Parties of the longer
decision period by not later than the close of final arguments.

 

16.10      Power to Settle

 

The
Parties’ representatives at any
arbitration throughout the arbitration shall be empowered or have sufficient
delegated authority to resolve, compromise, negotiate or settle the Dispute submitted to arbitration,
without seeking further instructions or approvals from any superiors or
committees / corporate structures.  The
representatives shall either be the same persons as in paragraph 16.1.2 (Formal
Negotiations) or their immediate subordinates.

 

16.10.1           Notwithstanding the
foregoing, if the nature, seriousness or financial quantum of the Dispute in law or corporate
policies/practices requires approval from the Board of Directors, or the Chief
Public Health Officer, as the case may be, then, such approval shall be
obtained within five (5) business days of the proffer of any settlement
offer.

 

16.10.2           If applicable, the
arbitration tribunal shall withhold its final decision until the Parties have ceased negotiating a
settlement.

 

16.11      Adjournment to Empower
Representative

 

Breach
of paragraph 16.10 (Power to Settle, [Duly empowered representative]), shall
entitle the other Party to seek an adjournment
of the arbitration proceedings, to give the breaching Party
time to appoint a duly empowered representative within the thirty (30)
days.  All costs directly traceable to
such delay, including arbitration tribunal costs and the non-breaching Party’s costs, shall be paid
forthwith by the breaching Party.

 

16.12      Deemed Abandonment

 

Failure
of the breaching Party to appoint such a
representative within the thirty (30) day period shall be deemed a withdrawal
or abandonment of the Dispute by
the breaching Party and the arbitrator
shall render a formal decision, finding in favour of the non-breaching Party.

 

16.13      General ADR Conditions

 

16.13.1           NO LITIGATION

 

If either Party has submitted the Dispute to court, which Dispute should properly have been
submitted for resolution by arbitration, then the court filing Party shall discontinue the court
proceedings forthwith, upon notice from the other Party,
and both Parties shall remit the Dispute to arbitration hereunder.

 

42

 

16.13.2            OBLIGATIONS DURING ALTERNATE
DISPUTE RESOLUTION (ADR)

 

During
the progress of ADR, the Parties
hereto shall continue to diligently perform their obligations under the License Agreement.

 

16.13.3            PRIVILEGE

 

Neither
Party shall be required to disclose
documents that are privileged or created in contemplation of litigation.  If a Party does
disclose such a document during ADR, that disclosure shall not be construed as
a waiver of any privilege unless the disclosing Party
so elects in writing.

 

16.13.4            CONFIDENTIALITY

 

The
Parties shall keep confidential the
existence of the proceeding under this article, and any element of the ADR
(including, without limitation, all conduct, statements, promises, offers,
views, pleadings, briefs, documents, testimonies, identity of witnesses,
submissions, awards and opinions, whether oral or written), made in the course
of the ADR, except as may be lawfully required in judicial or regulatory
proceedings relating to the arbitration or otherwise.  Without limiting the generality of the
foregoing, and for greater clarity, neither Party
may make any publicly accessible statements / publications nor any shareholder
or press announcements concerning any element of the ADR beyond the fact of the
ADR.

 

16.13.5            ADR DISCLOSURES NOT
ADMISSIBLE IN SUBSEQUENT PROCEEDINGS

 

Subject
to subparagraph 16.13.6 (Normally Admissible Evidence), all conduct,
statements, promises, offers, views and opinions, whether oral or written, made
in the course of the ADR by either Party, or
the mediator or arbitrator, are not discoverable or admissible for any
purposes, including impeachment, in any subsequent litigation or other
proceedings involving the Parties.

 

16.13.6            NORMALLY ADMISSIBLE EVIDENCE

 

Evidence
that would otherwise be discoverable or admissible and was not created for an
ADR, is not excluded from discovery or admission solely as a result of its use
in the ADR.

 

16.14      Limitation

 

All
Disputes must be submitted to ADR
within one (1) year from the time of the facts giving rise to the Dispute.  Failure to submit the Dispute
within the one (1) year period means a loss of all rights to submit the Dispute to ADR or litigation.

 

43

 

16.15      Material Breach

 

The
failure, neglect or unwillingness of a Party to
use or diligently participate in and prosecute a Dispute
through ADR is a material breach of the License Agreement.

 

17.0        INTENT AND INTERPRETATION

 

17.1        Entire
Agreement

 

The
License Agreement constitutes the
entire and exclusive agreement between the Parties
pertaining to the Commercialization and
licensing and supersedes all prior agreements, conditions, obligations,
understandings, and negotiations both written and oral.  The License Agreement
sets forth all obligations, undertakings, conditions, representations and
warranties forming part of, or in any way affecting or relating to the Commercialization.  The Parties
acknowledge that with respect to the Commercialization
there are no agreements, obligations, undertakings, representations or warranties
whether collateral, oral or written, between the Company and Canada other than
those expressly set out in the License Agreement.

 

17.2        No
Third Parties

 

Neither
the License Agreement or any provision
thereof is intended to confer upon any person other than the Parties, any rights or remedies
hereunder.

 

17.3        No
Pre-Contractual Inducing Representations

 

The
License Agreement supersedes and
revokes all negotiations, arrangements, letters of intent, offers, proposals,
brochures, term sheets, representations, memoranda of understandings and
information conveyed, whether oral or in writing or electronically,  between the Parties,
or any other person purporting to represent the Company or Canada.  Each of the Parties
agrees that:

 

17.3.1          neither has been induced to
enter into the License Agreement by any
representations whatsoever not set expressly forth in the License
Agreement;

 

17.3.2          neither has relied on any
such representations;

 

17.3.3          no such representations
shall be used in the interpretation or construction of the License
Agreement; and

 

17.3.4          no claims (including,
without limitation, loss of profits, indirect, incidental, consequential
damages and economic loss) arising directly or indirectly, from any such
representation, negligent or otherwise, shall accrue in law or equity, or be
pursued by the Company, and Canada shall have no liability for any such claims.

 

44

 

17.4        Due
Diligence Search

 

The
Company agrees that it has conducted its own due diligence examinations in
order to satisfy itself of the full, true and plain disclosure of all facts
pertinent to the Licensed Rights and all
representations made by Canada.

 

17.5        Independent
Legal Advice

 

It
is acknowledged by the Parties
that each has had legal advice to the full extent deemed necessary by each Party.  Furthermore, the Parties
acknowledge that neither acted under any duress in negotiating, drafting and
executing the License Agreement.

 

17.6        No
Adverse Presumption in Case of Ambiguity

 

There
shall be no presumption that any ambiguity in the License
Agreement be resolved in favour of either of the Parties.  For greater certainty, the contra proferentum rule shall not be applied in any
interpretation of the License Agreement.

 

17.7        Severability

 

If
a jurisdiction declares, finds or holds any part of the License
Agreement invalid, void, unenforceable or contrary to public
policy for any other reason, then:

 

17.7.1          NON-MATERIAL

 

if
the invalid provision is not material or fundamental to the License Agreement, the invalid
provision shall not affect the validity of the remainder which remainder shall
continue if full force and effect and be construed as if the License Agreement had been executed
without the invalid provision in that jurisdiction only;

 

17.7.2          MATERIAL

 

if
the invalid provision is material to the License Agreement
then that provision shall be “read down” or replaced with a provision which
accomplishes, to such extent as is possible, the original legal and business
purpose of such provision in a valid and enforceable manner, in that
jurisdiction and the remainder of the License Agreement
shall remain binding on the Parties;
and

 

17.7.3          FUNDAMENTAL

 

if
the invalid provision is fundamental to the License
Agreement, including any of the elements of a bare license,
then:

 

17.7.3.2       the jurisdiction which found
the invalidity shall be deleted from the Territory;
or

 

45

 

17.7.3.3       if the jurisdiction cannot
be deleted from the Territory, or there is more
than one jurisdiction, then the License Agreement
shall terminate.

 

17.8        Successors
and Assigns

 

The
License Agreement will be for the
benefit of and be binding upon the heirs, executors, administrators, permitted
successors, permitted assigns, and permitted Affiliates
of the Company and other legal representatives, as the case may be, of each of
the Parties.  Every reference in the License
Agreement to any Party
includes the heirs, executors, permitted administrators, permitted successors,
permitted assigns, and Affiliates
and other permitted legal representatives of the Party.

 

17.9        Plurality
and Gender

 

Reference
to a Party will be read as if all
required changes in the singular and plural and all grammatical changes
rendered necessary by gender had been made.

 

17.10      Not a Joint Venture

 

The
Parties expressly disclaim any intention
to create a partnership, joint venture or joint enterprise.  The Parties
acknowledge and agree that:

 

17.10.1           nothing contained in the License Agreement nor any acts of
any Party shall constitute or be deemed
to constitute the Parties as partners, joint
venturers or principal and agent in any way or for any purpose;

 

17.10.2           no Party
has the authority to act for, or to assume any obligation or responsibility on
behalf of any other Party; and

 

17.10.3           the relationship between the
Parties is that of licensor and
licencee.

 

17.11      Minister Not Fettered

 

Nothing
in the License Agreement shall
derogate or otherwise fetter the ability of Canada to regulate, administer,
manage or otherwise deal with public health and all attendant matters thereto.

 

17.12      Federal Legislation

 

The
application to the License Agreement of any
Federal act or regulation includes any subsequent amendment, revision,
substitution, consolidation to that act or regulation, notwithstanding that
such amendment, revision or substitution occurred after the execution of the License Agreement or may have a
retroactive effect.

 

17.13      Right to Legislate

 

Nothing
in the License Agreement shall
prohibit, restrict or affect the right or power of the Parliament of Canada to
enact any laws whatsoever with respect to any area of law 

 

46

 

for
which the Parliament of Canada has legislative jurisdiction, even if the
enactment of any such law affects the License Agreement,
its interpretation, or the rights, obligations, liabilities, vested or not,
accrued or accruing, of the Parties.

 

17.14      Compliance with Law

 

The
Parties shall comply with all
applicable laws, as those laws may be amended, revised, consolidated,
substituted, from time to time, even if such amendment, revision,
consolidation, substitution derogates prospectively or retroactivity from the Parties’ vested or accrued rights,
obligations and liabilities under the License Agreement.

 

17.15      No Implied Obligations

 

No
implied terms or obligations of any kind, by or on behalf of either of the Parties, shall arise from anything
in the License Agreement.  The express covenants and agreements herein
contained and made by the Parties are
the only covenants and agreements upon which any rights against either of the Parties may be founded.

 

17.16      Access to Information

 

Notwithstanding
any provision to the contrary in the License Agreement,
the Company acknowledges that Canada is subject to the Access to Information
Act, R.S.C. 1985, c.A-1 and related acts, and may be required to release,
in whole or in part, the License Agreement
and any other information or documents in Canada’s possession or control
relating to the License Agreement and the Parties.

 

17.17      Forum Conveniens &
Applicable Laws

 

Subject
to Article 16 (ADR) any Dispute,
shall be governed firstly by applicable Canadian Federal laws, and secondly by
the laws of the Province of Ontario.

The Parties expressly exclude from the License Agreement:

 

17.17.1        application of the United
Nations Convention on Contracts for the International Sale of Goods;

17.17.2        International Sales of Goods
Act; and

17.17.3        any conflict of laws, venue,
forum non-conveniens, rules or principles which might refer Disputes to the laws of another
jurisdiction.

 

17.18      Attornment

 

The
License Agreement shall be governed
by and construed in accordance with the laws in force in the Province of
Ontario, Canada and shall be treated in all respect as an Ontario, Canada
contract.  Subject to Article 16
(Alternate Dispute Resolution (ADR)) the
Parties irrevocably and
unconditionally attorn to and submit to the exclusive jurisdiction of the
courts of Ontario, Canada and all courts competent to hear appeals therefrom
with respect to any Dispute now or hereinafter
arising under the License Agreement.  The Parties waive any right each may have to
object to an action being 

 

47

 

brought
in those courts including, without limitation, by claiming that the action has
been brought in an inconvenient forum or that those courts do not have
jurisdiction.

 

17.19      USA Jury Trial

 

If
the License Agreement or any aspect of
it becomes a subject of judicial proceedings whether in contract, tort, equity
or otherwise, in the United States of America despite the ADR article and Forum
Conveniens (paragraph 17.17), then the Company irrevocably waives any and all
rights it has to a trial by jury in the United States.  The Company agrees and consents that due to
the technical and legal nature, including cross jurisdictional issues of the License Agreement or any aspect
thereof, any such proceedings will be heard before a judge sitting alone.

 

17.20      USA Jury Trial / Treble
Damages Addendum

 

For
greater clarity, the Company waives any right to a trial by jury of any claim,
demand action or caution of action

 

17.20.1            arising under the License Agreement; or

17.20.2            in any way connect with or
related or incidental to the dealings of the Parties
in respect of the License Agreement or any
other agreements or the transactions related hereto or thereto in each case
whether now existing or hereafter;

17.20.3            whether in contract, tort,
equity or otherwise.

 

The
Company agrees and consents that any such claim, demand, action or cause of
action shall be decided by a court without a jury.  Canada may file an original counterpart of
the License Agreement with the court as
written evidence of the consent of the Parties to
the waiver of their right to a trial by jury. 
In addition, the Company irrevocably waives any rights to triple/treble
damages or punitive damages under U.S. or any other law.

 

17.21      Waiver of Counterclaims

 

The
Company waives any and all of its rights to interpose any claims, deductions,
setoffs or counterclaims of any nature in any Dispute
with respect to the License Agreement.

 

17.22      Due Diligence Audits

 

If
in a subsequent transaction a third Party
requires to review this License Agreement
as part of a due diligence chain of title search, the Company hereby authorizes
the release of this License Agreement subject to
deleting any financial or proprietary or other Confidential
Information contained herein.

 

48

 

17.23      Recitals Accurate

 

The
Parties acknowledge the truth and
accuracy of the recitals and further acknowledge that the recitals may be used
by a court, mediator or arbitrator to help resolve any Dispute.

 

17.24      Force Majeure

 

17.24.1            EVENTS

 

Subject
to making all payments required under the License Agreement,
neither Party shall be in breach of
any of its obligations under the License Agreement
where the failure to perform or delay in performing any obligation is due,
wholly or in part, directly or indirectly to the occurrence of a force majeure
event including, without limitation:

 

17.24.1.2         war, whether declared or
not, civil war, revolution, acts of piracy / terrorism, acts of sabotage;

17.24.1.3         natural disasters such as
violent or destructive storms, cyclones, earthquakes, tidal waves floods, destruction
by lightning;

17.24.1.4         explosions, fires,
destruction of machines, factories, and any kind of installation;

17.24.1.5         boycotts, strikes and
lock-outs of all kinds, go-slows, occupation of factories and premises, and
work stoppages which occur in the enterprise of the Party
seeking relief;

17.24.1.6         acts of governmental bodies,
agencies, boards, whether lawful or unlawful other than those of the Public
Health Agency of Canada,

 

but
does not include:

 

17.24.1.7         the lack of regulatory or
other approvals, licenses, permits and authorizations necessary for the
performance of the License Agreement which are
issued by a public authority of any kind whatsoever for which the Company did
not apply for or diligently prosecute;

17.24.1.8         the inability of the affected
Party to obtain financing or any
other financial inability on the part of either Party
to meet its obligations under the License Agreement;

17.24.1.9         force majeure events that
the affected Party knew or should have
reasonably known at the time of negotiating the License
Agreement were probable or avoidable or the effects of which
could be minimized, and the affected Party took
no steps to deal with such force majeure events, including without limitation
obtaining the appropriate insurance, using updated machinery;

17.24.1.10       the portion of the breach or
delay due to the failure of the affected Party to
take all necessary reasonable steps to minimize, overcome or control the
effects of the force majeure event.

 

49

 

17.24.2            DUTY TO NOTIFY

 

The
Party affected by a force majeure
event as contemplated in subparagraph 17.24.1 (Force Majeure) shall:

 

17.24.2.2         give notice to the other Party of such force majeure and its
effects on the affected Party’s
ability to perform as soon as practicable after the force majeure and its
effects upon the affected Party’s
ability to perform become known to that Party.  Notice shall be given when the ground of
relief ceases;

 

17.24.2.3         take all reasonable efforts
to correct, compensate or minimize the effect of the force majeure event.

 

17.24.3            COMMENCEMENT OF RELIEF

 

The
affected Party shall in the affected
jurisdiction only:

 

17.24.3.2         be excused of its
obligations under the License Agreement
to the extent necessitated by the force majeure event from the time of the
force majeure event or if notice was not given as soon as practical, from the
receipt of such notice.  Failure to give
notice makes the failing Party
liable in damages for losses suffered by the other Party
which otherwise could have been avoided; and

 

17.24.3.3         complete or continue
performance of its obligations and duties under the License
Agreement as soon as practical after the cessation, removal, or
overcoming of the force majeure event.

 

17.24.4            TERMINATION OF AGREEMENT

 

If
the force majeure event continues in excess of sixty (60) consecutive days, or
in the aggregate 60 days over any consecutive 200 days, then at any time
thereafter Canada shall have the option to renegotiate the License
Agreement with the Company reasonably and in good faith.  If the Parties are
unable to agree to the terms of the proposed amended License
Agreement within 60 days from the notice to negotiate, then the License Agreement may be terminated
by Canada on the 61st day.

 

17.24.5            POSTPONEMENT OF OBLIGATIONS

 

Any
obligations of a Party under the License Agreement shall be postponed
automatically to the extent and for the period and only within the jurisdiction
or jurisdictions that the affected Party is
prevented from meeting those obligations by reason of any cause beyond its
reasonable control (other than lack of funds and applicable regulatory
approval).  The affected Party shall immediately notify the
other Party of the commencement,
nature of such cause and probable consequence. 
The affected Party shall also use its 

 

50

 

reasonable
best efforts to render performance in a timely manner, utilizing all resources
reasonably required in the circumstances.

 

17.25      Waiver

 

No
condoning, excusing, or overlooking by either of the Parties
of any default by the other Party, at
any time or times, in performing or observing any of the Parties’
respective covenants, will operate as a waiver renunciation, surrender, of or
otherwise affect the rights of the Parties in
respect of any continuing or subsequent default.  No waiver of these rights will be inferred
from anything done or omitted by the Parties,
except by an express waiver in writing.

 

17.26      No Estoppel Due to Third
Party Practices

 

No
custom, practice or usage regarding other License Agreements
between Canada and other Parties
shall preclude at any time the strict enforcement of the License
Agreement by Canada or the Company.

 

17.27      Contract Always Speaks

 

Where
a matter or thing is expressed in the present tense, it shall be applied to the
circumstances as they arise, so that effect may be given to the License Agreement according to its
true spirit, intent and meaning.

 

17.28      Time is of the Essence

 

Time
is of the essence in the License Agreement
with respect to the financial and Commercialization
obligations of the Company.

 

17.29      Headings

 

17.29.1            All headings in the License Agreement have been inserted
as a matter of convenience and for reference only, and in no way define, limit,
enlarge, modify, the scope or meaning of the License
Agreement or any of its provisions.

 

17.29.2            Nevertheless an arbitrator
or Judge may use any or all of the table of contents, recitals, and headings
when reviewing the covenants, statements, representations & warranties
and conditions subsequent to better understand the commercial and legal intent
of the License Agreement’s
provisions.

 

17.30      Internal References

 

Any
reference in the License Agreement to an
Article, paragraph, sub-paragraph, will mean an Article, paragraph or
sub-paragraph of the License Agreement,
unless otherwise expressly provided.

 

51

 

17.31      Precedence Over Appendices

 

If
there is a conflict or ambiguity between the License
Agreement proper and any appendix thereto, the interpretation
consistent with License Agreement proper
(taking into consideration the statements in the recitals and headings) shall
prevail and apply, notwithstanding any wording to the contrary in the
applicable appendix.

 

17.32      Appendices

 

Subject
to paragraph 17.31 (Precedent Over Appendices) the documents attached hereto as
Appendix A, B, C and D form an integral part of this License
Agreement as fully as if they were set forth herein in extenso, and consist of:

 

Appendix
“A” — DESCRIPTION OF THE LICENSED RIGHTS

Appendix “B” — CONFIDENTIALITY AGREEMENTS

Appendix “C” — BUSINESS PLAN

Appendix “D” — AFFILIATES

 

18.0        LEGAL RIGHTS

 

18.1        Amendments

 

No
modification or waiver of any provision of the License
Agreement will be inferred from anything done or omitted by
either of the Parties, except by an express
amendment in writing, duly executed by the Parties in
advance.

 

18.2      No Assignment Without
Consent

 

The
License Agreement is personal to the
Company.  The Company shall not assign the
License Agreement or any of the
Company’s rights, duties or obligations under the License
Agreement to a third party without the prior written consent of
Canada, such consent not to be unreasonably withheld.  Any attempt to assign this License Agreement or any of the
Company’s rights, duties or obligations under the License
Agreement without the prior written consent of Canada is void.

 

18.3        Mode
of Assignment / Approval Conditions

 

Without
derogating from paragraph 18.2 (Assignment), the Company shall not assign (or
transfer, sell, encumber, pledge, grant a security interest sub-license or
otherwise deal) or permit any such assignment, in whole or in part, of the License Agreement or any of its
interest, rights or obligations hereunder, whether such assignment takes place
by way of:

 

18.3.1              sale of assets;

 

18.3.2              sale of shares;

 

18.3.3              amalgamation, merger or
other reorganization of the Company;

 

52

 

18.3.4                                          merger,
transfer, conversion, assignment, redemption, issuance, sale, cancellation,
pledge, conversion or other dealings with any securities of the Company;

 

18.3.5                                          operation of
law;

 

18.3.6                                          acquisition by
a person or persons acting in concert of a majority interest of the securities
of the Company by a person or persons acting in concert who did not hold such a
majority interest at the time of the initial public offering (IPO) or at any
time after the IPO.

 

18.3.7                                          operation of
contract; or

 

18.3.8                                          otherwise in
any manner or structure whatsoever;

 

without
the prior written consent of Canada, which consent subject to subparagraph
18.3.9 will not be unreasonably withheld.

 

18.3.9                                          Any consent
from Canada shall be contingent and effective only upon receipt by Canada of
payment of [*].

 

18.3.10                                    Consent to any
assignment will not be construed as consent to any other assignment.

 

18.4        No Consent — Material Breach

 

Failure
of the Company to obtain the prior written consent of Canada to any assignment
shall be deemed to be a material breach of the License
Agreement.

 

18.5        Assignment Prejudicial - Compensation

 

It
will not be unreasonable for Canada to refuse to consent to any assignment if
it is foreseeable that the assignment might negatively affect Canada in any
way, or put Canada in breach of any contract with a third party or derogate
from the Commercialization.  Notwithstanding the foregoing, Canada may
still consent in exchange for payment of both  [*].

 

18.6        No Comfort Letter

 

Notwithstanding
anything to the contrary in the License Agreement,
Canada shall be under no obligation whatsoever to sign any a comfort letter or
other undertaking to a third party for the benefit of the Company.  If Canada so elects pursuant to its
unfettered discretion, then the Company shall pay or provide security in the
amount of liability so accepted or incurred by Canada.

 

53

 

18.7        Subcontracting

 

The
Company has the right to subcontract any portion, but not all, of the License Agreement, subject to the
following:

 

18.7.1                                          subcontracting
activities (including subcontracts entered into with contract research
organizations) shall be carried out by the Company in a manner that is
consistent with the Company’s obligations under paragraphs 2.4 to 2.7 of the License Agreement;

 

18.7.2                                          the Company
shall notify Canada in writing of any significant subcontracts or
subcontractors of whom the Company is aware may have an interest in the
technology or a collaboration with Canada;

 

18.7.3                                          the subcontract
cannot be a de facto assignment; and

 

18.7.4                                          no rights,
obligations, power or control vested in the Company shall be contingently or
otherwise transferred to any third party.

 

18.8        No Third Party Rights

 

Nothing
expressed or implied in the License Agreement
is intended to, or shall be construed to confer on or give to, any person other
than the Parties, any rights or
remedies under or by reason of the License Agreement.

 

18.9        Remedies Cumulative

 

All
rights, powers and remedies provided by the License
Agreement are cumulative with, and not exclusive of, the rights,
powers or remedies provided by law or equity independently of the License Agreement.

 

18.10    Mutual Assistance

 

The
Parties will at all times hereafter,
upon every reasonable request of the other, make, do, and execute or cause to
be procured, made, done, and executed, all such further acts, deeds and
assurances for the carrying out of the terms, covenants and agreements of the License Agreement, according to the
true intent and meaning of the License Agreement.  These obligations shall continue post
termination or expiry until all pre and post termination obligations are
satisfied.

 

18.11      Counterpart

 

The
License Agreement may be executed
simultaneously in counterpart, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

 

54

 

19.0        CROWN GENERAL

 

19.1        No Bribes

 

The
Company warrants that no bribe, gift, or other inducement has been paid, given,
promised or offered to any Government official or employee for the obtaining of
this License Agreement.

 

19.2        No Share to Members of Parliament

 

Pursuant
to the Parliament of Canada Act, R.S.C. 1985, c.P-1, no member of the
House of Commons or Senate will be admitted to any share or part of the License Agreement or to any benefit
arises from the License Agreement.

 

19.3        Public Office Holders

 

It
is a term of this License Agreement that no
former public Office holder, who is not in compliance with the post employment
provisions of the Conflict of Interest and Post Employment Code for Public
Office Holders, shall derive a direct benefit from this License
Agreement.

 

20.0        NOTICE

 

20.1        Addresses / Contacts

 

Wherever
in this License Agreement it is required
or permitted that notice or demand be given, or served by either Party to or on the other Party, such notice or demand will be
in writing and will be validly given or sufficiently communicated if hand
delivered or forwarded by certified mail, priority post mail, telegram, or
facsimile or sent by overnight delivery by a nationally recognized courier as
follows:

 

The
addresses for delivery are:

 

To the Company:

 

Nicholas
Vahanian

Chief Medical Officer

BioProtection Systems Corporation

2901 S. Loop Dr., Suite 3360

Ames, IA, USA

50010

Telephone:  (515) 598-2922

Facsimile:  (515) 296-3820

Email:  nvahanian@linkp.com

 

55

 

To Canada:

 

Dorothea
Blandford, PhD

Director, Intellectual Property Management & Business Development
Operations

Public Health Agency of Canada

1015 Arlington Street, Suite 2420

Winnipeg, Manitoba

Canada R3E 3R2

Telephone:  (204)
789-2096

Facsimile:  (204) 789-2097

Email:  dorothea_blanciford@hc-sc.dc.ca

 

The
Parties shall send an e-mail version of the notice or demand at least 24 hours
prior to the hard or facsimile copy, but failure to send the email version does
not invalidate or otherwise make subsequent service of the notice defective,

 

20.2        Deemed Delivery

 

Notice
will be deemed to have been delivered:

 

20.2.1                                          if delivered by
hand, upon receipt;

 

20.2.2                                          if sent by
electronic transmission, forty-eight (48) hours after the time of confirmed
transmission, excluding from the calculation weekends and public holidays;

 

20.2.3                                          if sent by
certified mail, four (4) days after the mailing thereof, provided that if
there is a postal strike or other disruption, such notice will be delivered by
hand or electronic transmission.

 

20.3        Change of Address

 

The
Parties may change their respective
addresses for delivery by delivering notice of change as provided in this
paragraph.

 

21.0        EXECUTION

 

IN
WITNESS WHEREOF this License Agreement
has been executed in duplicate by the duly authorized representatives of the Parties, on the date(s) set out
below.

 

FOR HER
MAJESTY THE QUEEN IN RIGHT OF CANADA:

 

56

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Frank
  A. Plummer, O.C. O.M.

  	
   

  	
  (Date)

  	
   

  	
  (Witness)

  
	
  MD
  LL.D, FRCPC, FRSC

  	
   

  	
   

  	
   

  	
   

  
	
  Chief Science Advisor

  	
   

  	
   

  	
   

  	
   

  

 

 

FOR THE
COMPANY:

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nicholas
  Vahanian, MD

  	
   

  	
  (Date)

  	
   

  	
  (Witness)

  
	
  Chief
  Medical Officer

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I
  have authority to bind the corporation

  	
   

  	
   

  	
   

  	
   

  

 

57

 

APPENDIX “A” DESCRIPTION OF THE LICENSED RIGHTS

 

[*]

 

58

 

APPENDIX “B” CONFIDENTIALITY AGREEMENTS

 

(APPENDED OVER THE NEXT 8 PAGES)

 

59

 

 

Office
of Director

Business
Development and Operations

National
Microbiology Laboratory

1015
Arlington Street

Winnipeg,
Manitoba R3E 3R2

 

April 14,
2010

 

Nicholas
Vahanian

BioProtection
Systems Corporation

Iowa
Stale University Research Park,

2901
South Loop Drive, Suite 3360,

Ames, Iowa
50010

 

RE:  Non Disclosure Agreement dated, November 18,
2008 between the Public Health Agency of Canada (referred to as “PHAC”), and
BioProtection Systems Corporation (referred to as “BPS”).

 

Dear
Dr Vahanian,

 

PHAC
and BPS have executed a Non Disclosure Agreement dated November 18,
2008.  The parties hereby agree to amend
the Agreement as follows:

 

i)                                         Section 9C,
“The term of this Agreement shall commence on its effective date and remain in
force for eighteen (18) months thereafter, except
that the Agreement shall remain effective with respect to the confidential
information disclosed under this Agreement for the remainder of any period of
confidentiality pursuant to subparagraph 9b above.”

 

Shall be replaced by

 

Section 9C
“The term of this Agreement shall commence on its effective date and remain in
force for sixty (60) months thereafter, except
that the Agreement shall remain effective with respect to the confidential
information disclosed under this Agreement for the remainder of any period of
confidentiality pursuant to subparagraph 9b above.”

 

All
other terms and conditions of the Agreement will remain in full force and
effect and shall continue the duration of the Agreement.  This letter, upon execution by both parties,
shall form part of the Agreement and the two documents shall be read together.

 

60

 

If
the foregoing amendment is satisfactory, please counter sign this letter on
behalf of the Participants in the spaces provided, and return the signed letter
to our office via electronic PDF copy to sabrina_choma@phac-aspc.gc.ca

 

Sincerely,

 

	
  Frank
  A. Plummer OC, MD, LL.D, FRCP(C), FRSC

  	
   

  
	
  Scientific
  Director General

  	
   

  
	
  National
  Microbiology Laboratory

  	
   

  

 

Acknowledged
and agreed to on behalf of BPS:

 

	
  Name:

  	
  Carl
  Langren

  	
   

  
	
  Title:

  	
  Chief
  Financial Officer

  	
   

  

 

61

 

 

	
  THE
  PARTIES ARE:

  	
  Her
  Majesty the Queen in Right of Canada as represented by the Minister of Health
  (“Public Health Agency of Canada”)

  
	
   

  	
   

  
	
   

  	
  Whose
  address is:

  
	
   

  	
  National
  Microbiology Laboratory

  
	
   

  	
  Canadian
  Science Centre for Human and Animal Health Canada

  
	
   

  	
  1015
  Arlington Street, Winnipeg, MB R3E 3R2, CANADA

  
	
   

  	
  (called
  “PHAC”) OF THE FIRST PART

  
	
   

  	
   

  
	
  AND:

  	
  BioProtection
  Systems Corporation

  
	
   

  	
   

  
	
   

  	
  Whose
  address is

  
	
   

  	
  Iowa
  State University Research Park, 2901 South Loop Drive,

  
	
   

  	
  Suite 3360,
  Ames Iowa 50010

  
	
   

  	
  (called
  the “Participant”) OF THE SECOND PART

  

 

Effective
Date:  November 1, 2008

 

In
order to protect certain confidential information the Parties identified above,
agree on terms about confidentiality which fairly protects both parties.

 

1.             Disclosing Party:  The party(ies) disclosing confidential
information (“Disclosing Party”) is/are: 
Public Health Agency at Canada, National Microbiology Laboratory, 1015
Arlington Street, Winnipeg. MB 133E 3R2, and BioProtection Systems Corporation,
2901 South Loop Drive, Suite 3360, Ames, Iowa 50010.

 

2.             Primary Representative:  The representative(s) of each party for
coordinating the disclosure and/or receipt of confidential information
are:  Dr. Steven Jones and Dr. Dorothea
Blandford and Dr. Nicholas Vahanian.

 

3.             Description of Confidential
Information:  The subject matter of the
confidential information disclosed under this Agreement is described as:

Public
Health Agency of Canada:  [*].

Participant:  scientific and technical information relating
to the pipeline products; business information.

 

4.             Use of Confidential
Information:  The party receiving the
confidential information (“Recipient”) shall keep the confidential information
in strict confidence and shall make use of the confidential information only
for the following purpose:  to discuss
scientific and business arrangements in view of negotiating a license
agreement.

 

5a.           Standard of Care:  Recipient shall protect the disclosed
confidential information by using the same degree of care, but no less than a
reasonable degree of care, to prevent the unauthorized 

 

62

 

use,
dissemination, or publication of the confidential information, as Recipient
uses to protect its own confidential information of a like nature.

 

5b.           In particular, and without limiting
the generality of the foregoing, Recipient shall not copy, reproduce, divulge,
publish or circulate (or permit anyone else to do so) any of the confidential
information disclosed to it by the Disclosing Party, except to such of its
employees [and/or contractors and consultants] as may require access to the
confidential information on a strict need-to-know basis for the uses
contemplated in paragraph 4.

 

6.             Markings:  Recipient’s obligations shall extend to
confidential information that is described in paragraph 3, and that (a) if
set out in written, graphical, photographic or other tangible form (including,
without limitation thereto, machine readable object code), is marked “Confidential’
or “Proprietary” by the Disclosing Party, or (b) if disclosed orally, is
identified as confidential or proprietary at the time of disclosure and a written
summary thereof marked ‘Confidential” or ‘Proprietary” is furnished by the
Disclosing Party to Recipient within thirty (30) days after such oral
disclosure.

 

7.             Exclusions:  This Agreement imposes no obligation upon
Recipient with respect to information that: 
(a) was in Recipient’s possession before receipt from the
Disclosing Party; (b) is or becomes a matter of public knowledge through
no fault of Recipient; (c) is rightfully received by Recipient from a
third party without a duty of confidentiality; (d) is disclosed by the
Disclosing Party to a third party without a duty of confidentiality on the
third party; (e) is independently developed by Recipient; (f) is
disclosed under operation of law, including the Access to Information Act of
Canada; or (g) is disclosed by Recipient with the Disclosing Party’s prior
written approval.

 

8.             Warranty:  Each Disclosing Party warrants that it has
the right to make the disclosures under this Agreement.

 

NO
OTHER WARRANTIES ARE MADE BY EITHER PARTY UNDER THIS AGREEMENT.  ANY INFORMATION EXCHANGED UNDER THIS
AGREEMENT IS PROVIDED “AS IS”.

 

NEITHER
PARTY PROVIDES ANY OTHER REPRESENTATION, WARRANTY, ASSURANCE OR GUARANTEE OF
ANY KIND WITH RESPECT TO THE CONFIDENTIAL INFORMATION IT DISCLOSES.

 

9a.           Rights:  Neither party acquires any intellectual
property rights under this Agreement except the limited rights necessary to
carry out the purposes set forth in paragraph 4.  This Agreement shall not restrict
reassignment of Recipient’s employees.

 

9b.           The obligations set out in paragraphs
4 and 5 above shall become effective with respect to any confidential
information immediately upon its disclosure by the Disclosing Party to
Recipient and shall continue for a period of three (3) years thereafter.

 

9c.           The term of this Agreement shall
commence on its effective date and remain in force for 18 months thereafter,
except that the Agreement shall remain effective with respect to the 

 

63

 

confidential
information disclosed under this Agreement for the remainder of any period of
confidentiality pursuant to subparagraph 9b above.

 

9d.           Upon request made by the Disclosing
Party during the term of the Agreement, Recipient shall return the confidential
information and all copies thereof to the Disclosing Party or, at the option of
the Disclosing Party, destroy the confidential information and all copies
thereof, and Recipient shall certify in writing within five (5) days of
the receipt of the request from the Disclosing Party that it has complied with
that request.

 

Miscellaneous

 

10.           The only terms concerning
confidentiality relating to the information described in paragraph 3 are in
this Agreement and in the Access to Information Act of Canada.

 

11.           This Agreement imposes no obligation
on either party to purchase, sell, licence, transfer or otherwise dispose of
any technology, services or products, and neither this Agreement nor the
disclosure or receipt of confidential information under this Agreement
constitutes or implies any undertaking or commitment by either party to enter
into any further activity, arrangement or course of action with the other party
or with any third party.

 

12.           Both parties shall adhere to all
applicable laws, regulations and rules relating to the export of technical
data, and shall not export or re-export any technical data, any products
received from the Disclosing Party, or the direct product of such technical
data to any prescribed country listed in such applicable laws, regulations and rules unless
properly authorized.

 

13.           This Agreement does not create any
agency or partnership relationship.

 

14.           This Agreement cannot be modified
except by a document signed by both Parties that explicitly refers to this
Agreement.

 

 

64

 

 

	
  THE
  PARTIES ARE:

  	
  Her
  Majesty the Queen in Right of Canada as represented by the Minister of Health
  (“Public Health Agency of Canada”)

  
	
   

  	
   

  
	
   

  	
  Whose
  address is

  
	
   

  	
  National
  Microbiology Laboratory

  
	
   

  	
  Canadian
  Science Centre for Human and Animal Health Canada

  
	
   

  	
  1015
  Arlington Street, Winnipeg, MB R3E 3R2, CANADA

  
	
   

  	
  (called
  “PHAC”) OF THE FIRST PART

  
	
   

  	
   

  
	
  AND:

  	
  BioProtection
  Systems Corporation

  
	
   

  	
   

  
	
   

  	
  Whose
  address is

  
	
   

  	
  Iowa
  State University Research Park, 2901 South Loop Drive,

  
	
   

  	
  Suite 3360,
  Ames Iowa 50010

  
	
   

  	
  (called
  the “Participant’) OF THE SECOND PART

  

 

Effective
Date:  May 1, 2007

 

In
order to protect certain confidential information the Parties identified above,
agree on terms about confidentiality which fairly protects both parties.

 

1.             Disclosing Party:  The party(ies) disclosing confidential
information (“Disclosing Party”) is/are: 
Public Health Agency of Canada, National Microbiology Laboratory, 1015
Arlington Street, Winnipeg, MB R3E 3R2, and BioProtection Systems Corporation,
2901 South Loop Drive, Suite 3360, Ames, Iowa 50010.

 

2.             Primary Representative.  The representative(s) of each party for
coordinating the disclosure and/or receipt of confidential information
are:  Dr. Heinz Feldmann and Dr. Dorothea
Blandford and Dr. Nicholas Vahanian.

 

3.             Description of Confidential
Information:  The subject matter of the
confidential information disclosed under this Agreement is described as:

Public
Health Agency of Canada:  [*]

Participant:  scientific and technical information relating
to the pipeline products:  business
information.

 

4.             Use of Confidential
Information:  The party receiving the
confidential information (“Recipient”) shall keep the confidential information
in strict confidence and shall make use of the confidential information only
for the following purpose:  to discuss
scientific and business arrangements in view of negotiating a license
agreement.

 

65

 

5a.           Standard of Care:  Recipient shall protect the disclosed
confidential information by using the same degree of care, but no less than a
reasonable degree of care, to prevent the unauthorized use, dissemination, or
publication of the confidential information, as Recipient uses to protect its
own confidential information of a like nature.

 

5b.           In particular, and without limiting
the generality of the foregoing, Recipient shall not copy, reproduce, divulge,
publish or circulate (or permit anyone else to do so) any of the confidential
information disclosed to it by the Disclosing Party, except to such of its
employees [and/or contractors and consultants] as may require access to the
confidential information on a strict need-to-know basis for the uses
contemplated in paragraph 4.

 

6              Markings:  Recipient’s obligations shall extend to
confidential information that is described in paragraph 3, and that (a) if
set out in written, graphical, photographic or other tangible form (including,
without limitation thereto, machine readable object code), is marked “Confidential”
or “Proprietary” by the Disclosing Party, or (b) if disclosed orally, is
identified as confidential or proprietary at the time of disclosure and a
written summary thereof marked “Confidential” or “Proprietary” is furnished by
the Disclosing Party to Recipient within thirty (30) days after such oral
disclosure.

 

7.             Exclusions:  This Agreement imposes no obligation upon
Recipient with respect to information that: 
(a) was in Recipient’s possession before receipt from the
Disclosing Party; (b) is or becomes a matter of public knowledge through
no fault of Recipient; (c) is rightfully received by Recipient from a
third party without a duty of confidentiality: 
(d) is disclosed by the Disclosing Party to a third party without a
duty of confidentiality on the third party; (e) is independently developed
by Recipient; (1) is disclosed under operation of law, including the
Access to information Act of Canada; or (g) is disclosed by Recipient with
the Disclosing Party’s prior written approval.

 

8.             Warranty:  Each Disclosing Party warrants that it has
the right to make the disclosures under this Agreement.

 

NO
OTHER WARRANTIES ARE MADE BY EITHER PARTY UNDER THIS AGREEMENT, ANY INFORMATION
EXCHANGED UNDER THIS AGREEMENT IS PROVIDED “AS IS”.

 

NEITHER
PARTY PROVIDES ANY OTHER REPRESENTATION, WARRANTY, ASSURANCE OR GUARANTEE OF
ANY KIND WITH RESPECT TO THE CONFIDENTIAL INFORMATION IT DISCLOSES.

 

9a.           Rights:  Neither party acquires any intellectual
property rights under this Agreement except the limited rights necessary to
carry out the purposes set forth in paragraph 4.  This Agreement shall not restrict
reassignment of Recipient’s employees.

 

9b.           The obligations set out in paragraphs
4 and 5 above shall become effective with respect to any confidential
information immediately upon its disclosure by the Disclosing Party to
Recipient and shall continue for a period of three (3) years thereafter.

 

66

 

9c.           The term of this Agreement shall
commence on its effective date and remain in force for 18 months thereafter,
except that the Agreement shall remain effective with respect to the
confidential information disclosed under this Agreement for the remainder of
any period of confidentiality pursuant to subparagraph 9b above.

 

9d.           Upon request made by the Disclosing
Party during the term of the Agreement, Recipient shall return the confidential
information and all copies thereof to the Disclosing Party or, at the option of
the Disclosing Party, destroy the confidential information and all copies
thereof, and Recipient shall certify in writing within five (5) days of
the receipt of the request from the Disclosing Party that it has complied with
that request.

 

Miscellaneous

 

10.           The only terms concerning
confidentiality relating to the information described in paragraph 3 are in this
Agreement and in the Access to Information Act of Canada.

 

11.           This Agreement imposes no obligation
on either party to purchase, sell, licence, transfer or otherwise dispose of
any technology, services or products, and neither this Agreement nor the disclosure
or receipt of confidential information under this Agreement constitutes or
implies any undertaking or commitment by either party to enter into any further
activity, arrangement or course of action with the other party or with any
third party.

 

12.           Both parties shall adhere to all
applicable laws, regulations and rules relating to the export of technical
data, and shall not export or re-export any technical data, any products
received from the Disclosing Party, or the direct product of such technical
data to any prescribed country listed in such applicable laws, regulations and rules unless
properly authorized.

 

13.           This Agreement does not create any
agency or partnership relationship

 

14.           This Agreement cannot be modified
except by a document signed by both Parties that explicitly refers to this
Agreement.

 

 

67

 

APPENDIX “C” BUSINESS PLAN

 

(TO FOLLOW WITHIN 30 DAYS OF EXECUTION)

 

68

 

APPENDIX “D” AFFILIATES

 

NewLink
Genetics Corporation, 2901 South Loop Drive, Suite 3900, Ames, Iowa,
USA 50010

 

69Exhibit 4.01

 

	
  

  	
  DELAWARE MARCH,
  23 2006 SEAL DEMAND MEDIA, INC. CORPORATE This certifies that is the record
  holder of Dated: DM Incorporated under the laws of the state of Delaware
  Fully paid and nonassessable shares of common stock, $0.0001 par value, of Demand
  Media, Inc. transferable on the books of the corporation in person or by duly
  authorized attorney upon surrender of this Certificate properly endorsed.
  This Certificate is not valid until countersigned by the Transfer Agent and
  registered by the Registrar. witness the facsimile seal of the Corporation
  and the facsimile signatures of its duly authorized officers. CUSIP XXXXXX XX
  X SEE REVERSE FOR CERTAIN DEFINITIONS countersigned and registered: American stock
  Transfer & Trust company, LLC (New York, NY) transfer agent and registrar
  BY: authorized signature secretary & general counsel chairman & chief
  executive officer 

  

 

	
  

  	
  The Corporation
  shall furnish without charge to each stockholder who so requests a statement
  of the powers, designations, preferences and relative, participating,
  optional or other special rights of each class of stock of the Corporation or
  series thereof and the qualifications, limitations or restrictions of such
  preferences and/or rights. Such requests shall be made to the Corporation’s
  Secretary at the principal office of the Corporation. The following
  abbreviations, when used in the inscription on the face of this certificate,
  shall be construed as though they were written out in full according to
  applicable laws or regulations: Additional abbreviations may also be used
  though not in the above list. TEN COM – as tenants in common TEN ENT – as
  tenants by the entireties JT TEN – as joint tenants with right of
  survivorship and not as tenants in common COM PROP – as community property
  UNIF GIFT MIN ACT – Custodian (Cust) (Minor) under Uniform Gifts to Minors
  Act (State) UNIF TRF MIN ACT – Custodian (until age ) (Cust) under Uniform
  Transfers (Minor) to Minors Act (State) FOR VALUE RECEIVED,  hereby sell(s), assign(s) and transfer(s)
  unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
  shares of the capital stock represented by within Certificate, and do hereby
  irrevocably constitute and appoint attorney-in-fact to transfer the said
  stock on the books of the within named Corporation with full power of the
  substitution in the premises. Dated NOTICE: The SIGNATURE TO This ASSIGNMENT
  MUST CORRESPOND with The NAME AS written UPON The FACE OF The CERTIFICATE IN Every
  PARTICULAR, without ALTERATION OR ENLARGEMENT OR Any Change whatsoever. by The
  SIGNATURE(S) Should be GUARANTEED by AN Eligible GUARANTOR INSTITUTION, (banks,
  Stockbrokers, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS with Membership
  IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE
  17Ad-15. GUARANTEES by A Notary Public ARE NOT Acceptable. SIGNATURE
  GUARANTEES MUST NOT be DATED. Signature(s) Guaranteed: (PLEASE PRINT OR Typewrite
  NAME AND ADDRESS, INCLUDING zip CODE, OF ASSIGNEE) X X

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