Document:

Exhibit 4.15

    Exhibit
      4.15

    
 

    THIS
      DEBENTURE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR ANY STATE SECURITIES LAWS. THIS DEBENTURE MAY NOT BE SOLD, OFFERED FOR SALE,
      PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
      AS
      TO THIS DEBENTURE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR
      AN
      OPINION OF COUNSEL REASONABLY SATISFACTORY TO TM BIOSCIENCE CORPORATION THAT
      SUCH REGISTRATION IS NOT REQUIRED.

     

    UNLESS
      PERMITTED UNDER CANADIAN SECURITIES LEGISLATION, THE HOLDER OF THIS DEBENTURE
      SHALL NOT TRADE THE DEBENTURE BEFORE DECEMBER 16,
      2006.

     

    UNSECURED
      SUBORDINATED DEBENTURE

     

    FOR
      VALUE RECEIVED,
      Tm
      Bioscience Corporation (the “Borrower”),
      hereby promises to pay to Jayvee
      & Co., Commerce Court W., Securities Level, Toronto, Ontario, M5L
      1G9
      (the
“Holder”)
      or its
      permitted assigns or successors in interest, on order, on presentation and
      surrender of this Unsecured Subordinated Debenture, the aggregate principal
      amount of one
      million nine hundred and fifty thousand
      in
      lawful money of the Canada ($1,950,000),
      together with any accrued and unpaid interest thereon, on the
      date
      which is the first anniversary of the date hereof (the “Maturity
      Date”)
      or at
      such other times as set out herein or as otherwise directed by the
      Holder.
      

     

    This
      Unsecured Subordinated Debenture is one of the Unsecured Subordinated Debentures
      issued by the Borrower on the date hereof. Each such Unsecured Subordinated
      Debenture shall rank pari
      passu
      to one
      another. No amendments shall be made to any one of the Unsecured Subordinated
      Debentures or to any provision common to all the Unsecured Subordinated
      Debentures without the same amendments being made to the other Unsecured
      Subordinated Debentures. All payments of principal, interest and other amounts
      due and made to or on behalf of the holders of Unsecured Subordinated Debentures
      shall be made rateably to or for the benefit of each Holder thereof.

     

     

    ARTICLE
      I  

     

     

    DEFINITIONS

     

        1.1  Defined
      Terms.
      As used
      in this Unsecured Subordinated Debenture, the following expressions shall have
      the following meanings:

     

    “Borrower”
means
      Tm Bioscience Corporation, a corporation incorporated under the laws of the
      Province of Ontario.

     

    “Cash
      Infusion”
has
      the
      meaning ascribed thereto in Section 2.3 hereof.

     

    “Event
      of Default”
has
      the
      meaning ascribed thereto in Article V hereof.

     

    “Holder”
means
      Jayvee
      & Co., Commerce Court W., Securities Level, Toronto, Ontario, M5L
      1G9.

     

    “Maturity
      Date”
means
      the first anniversary of the date hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Obligations”
means
      all monies and all obligations now or at any time and from time to time
      hereafter owing or payable by the Borrower to the Holder under this Unsecured
      Subordinated Debenture (whether now existing, presently arising or created
      in
      the future), and whether direct or indirect, absolute or contingent, matured
      or
      not.

     

    “Person”
means
      an individual, partnership, corporation, trust, unincorporated association,
      joint venture, governmental agency or other entity.

     

    “Permitted
      Encumbrances”
has
      the
      meaning ascribed thereto in Schedule “A”
      hereof.

     

    “Proceeding”
has
      the
      meaning ascribed thereto in Section 3.2 hereof.

     

    “Subscription
      Agreement”
means
      the subscription agreement dated as of the date hereof between the Borrower
      and
      the Holder relating to the issuance of this Unsecured Subordinated Debenture
      by
      the Borrower to the Holder.

     

    “Senior
      Debt”
has
      the
      meaning ascribed thereto in Section 3.1 hereof.

     

     

           
      ARTICLE II  

    INTEREST
      & REPAYMENT

     

        2.1  Interest.
      The
      interest payable on this Unsecured Subordinated Debenture shall accrue at eleven
      percent (11%) per annum, payable
      monthly in arrears.

     

        2.2  Optional
      Prepayment.
      The
      Borrower may prepay to the Holder, at any time prior to the Maturity Date,
      the
      then remaining principal amount, in whole or in part, together with accrued
      but
      unpaid interest thereon, if any, then due, accrued, payable or owing to the
      Holder under this Unsecured Subordinated Debenture.

     

        2.3  Mandatory
      Prepayment.
      The
      Borrower shall prepay this Unsecured Subordinated Debenture by paying to the
      Holder the then remaining principal amount of the Unsecured Subordinated
      Debenture together with accrued but unpaid interest thereon, if any, then due,
      accrued, payable or owing to the Holder under this Unsecured Subordinated
      Debenture, within 30 days of any investment, offering (of debt or equity),
      receipt of capital contributions, investment income or partnership proceeds,
      sale of assets or shares, or any similar transaction (collectively, a
“Cash
      Infusion”)
      that
      results in net proceeds to the Borrower of fifteen million dollars ($15,000,000)
      or more. In the event the Cash Infusion results in net proceeds to the Company
      of less than fifteen million dollars ($15,000,000), the Company shall prepay
      this Unsecured Subordinated Debenture by paying to the Holder a pro
      rata
      portion
      of the then remaining principal amount of the Unsecured Subordinated Debenture,
      being the proportion of the actual amount of the net proceeds to the Company
      of
      the Cash Infusion relative to fifteen million dollars ($15,000,000) together
      with accrued but unpaid interest, if any, then due, accrued, payable or owing
      to
      the Holder under this Unsecured Subordinated Debenture, within 30 days of the
      Cash Infusion.

     

        2.4  No
      Gross-Up
      Payments
      of principal and interest on this Unsecured Subordinated Debenture shall not
      be
      increased to take into account any taxes, levies, imposts, deductions, charges
      or withholdings, including any Canadian withholding taxes payable in respect
      of
      interest or amounts deemed to be interest on this Unsecured Subordinated
      Debenture. For greater certainty, the Borrower shall not be responsible for
      any
      present or future stamp or documentary taxes or any other excise or property
      taxes, charges or similar levies that arise from any payment hereunder or from
      the execution, delivery or registration of, or otherwise with respect to, this
      Unsecured Subordinated Debenture. 

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

           
      ARTICLE III  

    SUBORDINATION

     

        3.1  The
      Obligations are expressly subordinated and postponed, to the extent and in
      the
      manner provided in this Article III without any further action or documentation
      whatsoever being necessary to give effect to such subordination, in right of
      payment to the prior payment in full of the secured convertible note dated
      November
      22, 2005
      held by
      Laurus Master Fund, Ltd. and any refinancings and renewals thereof (the
“Senior
      Debt”).
      

     

        3.2  In
      the
      event of any insolvency or bankruptcy proceedings, or any receivership,
      liquidation, reorganization or other similar proceedings relating to the
      Borrower, or to its property or assets, or in the event of any proceedings
      for
      voluntary liquidation, dissolution or other winding-up of the Borrower, whether
      or not involving insolvency or bankruptcy, or any marshalling of the assets
      and
      liabilities of the Borrower (collectively referred to as a “Proceeding”),
      the
      holders of Senior Debt shall be entitled to receive payment in full of all
      the
      Senior Debt before the Holder shall be entitled to receive any payment or
      distribution of any kind or character, whether in cash, property or securities
      which may be payable or deliverable in any such event in respect of this
      Unsecured Subordinated Debenture.

     

        3.3  Upon
      any
      payment or distribution of assets of the Borrower referred to in this Article
      III, the Holder shall be entitled to call for and rely upon a certificate,
      addressed to the Holder, of the Person making the payment or distribution for
      the purpose of ascertaining (i) the Persons entitled to participate in the
      distribution, (ii) the holder of Senior Debt and other indebtedness of the
      Borrower, (iii) the amount of the indebtedness, (iv) the amount or amounts
      paid
      or distributed, and (v) all other pertinent facts.

     

        3.4  Subject
      to the payment in full of all Senior Debt, the Holder shall be subrogated to
      the
      rights of the holder of Senior Debt to receive payments and distributions of
      property and assets of the Borrower in respect of and on account of Senior
      Debt,
      to the extent of the application thereto of moneys or other assets which would
      have been received by the Holder but for the provisions of this Article III,
      until the principal of and interest on this Unsecured Subordinated Debenture
      shall be paid in full. No payment or distribution of assets of the Borrower
      to
      the Holder which would be payable or distributable to the holder of Senior
      Debt
      pursuant to this Article III shall, as between the Borrower, its creditors
      (other than the holder of Senior Debt) and the Holder, be deemed to be a payment
      by the Borrower to or on account of the Holder, it being understood that the
      provisions of this Article III are, and are intended, solely for the purpose
      of
      defining the relative rights of the Holder on the one hand, and the holder
      of
      the Senior Debt on the other hand. Nothing contained in this Article III or
      elsewhere in this Unsecured Subordinated Debenture is intended to or shall
      impair, as between the Borrower and its creditors (other than the holders of
      Senior Debt), the obligation of the Borrower, which is unconditional and
      absolute, to pay to the Holder the principal of and interest on this Unsecured
      Subordinated Debenture and any other amounts payable under this Unsecured
      Subordinated Debenture as and when the same shall become due and payable in
      accordance with its terms, or to affect the relative rights of the Holder and
      creditors of the Borrower other than the holder of the Senior Debt, nor shall
      anything herein or therein prevent the Holder from exercising all remedies
      otherwise permitted by applicable law upon default under this Unsecured
      Subordinated Debenture, subject to the rights, if any, under this Article III,
      of the holder of Senior Debt upon the exercise of any such remedy.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

        3.5  In
      the
      event that, notwithstanding the foregoing provisions of this Article III, the
      Holder shall have received any payment after a Proceeding has commenced and
      before all Senior Debt has been paid in full, the Holder shall hold such payment
      in trust for the benefit of the holders of Senior Debt and shall immediately,
      upon the completion of the Proceeding, pay the payment over to the holders
      of
      Senior Debt for application against unpaid Senior Debt.

     

        3.6  For
      greater certainty, this Article III shall not be construed so as to prevent
      the
      Holder from receiving and retaining any payments on account of this Unsecured
      Subordinated Debenture which are made (i) in a manner that is consistent with
      the terms of this Unsecured Subordinated Debenture or the Subscription
      Agreement, and (ii) at any time when no event of default, as defined in the
      instruments creating any Senior Debt, has occurred and is continuing and in
      respect of which notice has been given by or on behalf of the holder of Senior
      Debt to the Borrower and the Holder. Until written notice has been given to
      the
      Holder by or on behalf of any holder of any Senior Debt of the occurrence of
      any
      default with respect to the Senior Debt or the existence of any other facts
      which would have the result that any payment in respect of this Unsecured
      Subordinated Debenture would be in contravention of the provisions of this
      Article III, the Holder shall be entitled to assume that no such default has
      occurred, or that no such facts exist.

     

        3.7  The
      holder of Senior Debt shall be entitled to rely and shall be third party
      beneficiaries of the provisions of this Article III.

     

     

       
      ARTICLE IV  

    COVENANTS
      OF THE BORROWER

     

        The
      Borrower
      hereby covenants and agrees for the benefit of the Holder, that so long as
      this
      Unsecured Subordinated Debenture remains outstanding:

     

        4.1  To
      Pay
      Principal Amount and Interest.
      The
      Borrower will duly and punctually pay or cause to be duly and punctually paid
      to
      the Holder, all amounts payable by the Borrower under this Unsecured
      Subordinated Debenture at the times and places and in the currency and manner
      mentioned therein.

     

        4.2  Proper
      Records.
      The
      Borrower will maintain proper books of account and other records in accordance
      with applicable generally accepted accounting principles, consistent with past
      practice.

     

        4.3  Insurance.
      The
      Borrower will maintain insurance at all times with financially sound and
      reputable insurers and in such amounts and covering such risks as the Borrower
      reasonably believes is customary for companies engaged in similar businesses
      and
      owning similar properties in the same general areas and to the extent available
      on commercially reasonable terms. 

     

        4.4  Compliance
      with Laws.
      The
      Borrower will comply in all material respects with all applicable laws, rules,
      regulations, permits, authorizations, consents and orders, the non-compliance
      with which would materially adversely affect the ability of the Borrower to
      perform its obligations under this Unsecured Subordinated
      Debenture.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

        4.5 
Notice
      of Default.
      The
      Borrower will give the Holder notice of the occurrence of any Event of Default
      pursuant to this Unsecured Subordinated Debenture or any event which, with
      the
      lapse of time or the giving of notice or both, would constitute an Event of
      Default;

     

        4.6  Notice
      of Litigation.
      The
      Borrower shall give the Holder, as soon as practicable after it shall become
      aware of the commencement or threat in writing of any material action,
      proceeding, arbitration or investigation against the Borrower or any material
      part of its properties, assets or business.

     

        4.7  Existence.
      The
      Borrower shall preserve and maintain its legal existence in good standing and
      shall qualify and remain duly qualified to carry on business and own property
      in
      each jurisdiction in which failure to maintain such qualification would have
      a
      material adverse effect on the business or existence of the
      Borrower.

     

        4.8  Use
      of
      Proceeds.
      The
      Borrower shall use the proceeds of this Unsecured Subordinated Debenture for
      the
      Borrower’s pipeline of genetic tests and for general corporate purposes.

     

        4.9  Reporting
      Issuer Status.
      The
      Borrower will maintain reporting issuer status in at least the provinces of
      British Columbia, Alberta, Manitoba, Ontario and Quebec.

     

        4.10 
Inspection.
      At all
      reasonable times the Borrower will, upon prior written notice, furnish or cause
      to be furnished to the Holder or its duly authorized agent or attorney such
      information relating to its business as the Holder may reasonably require and
      such books of account shall at all reasonable times be open for inspection
      by
      the Holder or such agent or attorney of the Holder.

     

        4.11  Financial
      Statements.
      Upon the
      reasonable request of the holder, the Borrower will furnish to the Holder a
      copy
      of all financial statements, whether annual or interim, of the Borrower and
      the
      report, if any, of the Borrower’s auditors thereon and of all annual and other
      periodic reports of the Borrower, if any, furnished to its shareholders at
      the
      same time as they are furnished to the shareholders.

     

        4.12  Negative
      Covenants.
      The
      Borrower will not, without the consent of the Holder:

     

     

    
      	(a)  	
              make
                any amendment to the articles of the Borrower in a manner which may
                prejudice the Holder or could reasonably be expected to result in
                a
                material adverse change to the
                Borrower;

            

    

     

    
      	(b)  	
              make
                any payment of any dividend to any shareholder of the
                Borrower;

            

    

     

    
      	(c)  	
              create,
                incur, grant, assume or suffer to exist any mortgages, charges or
                security
                interest over the property and assets of the Borrower other than
                the
                Permitted Encumbrances;

            

    

     

    
      	(d)  	
              prepay
                any debt obligations which are subordinate in right of payment to
                the
                prior payment in full of the Obligations, in advance of the maturity
                date
                or such other date as may be otherwise prescribed by the instrument
                creating such debt obligation;

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	(e)  	
              guarantee
                the obligations of any Person, other than obligations secured by
                a
                Permitted Encumbrance or obligations incurred in the ordinary course
                of
                business; and

            

    

     

    
      	(f)  	
              enter
                into a transaction with any Person not dealing at arm’s length (as defined
                in the Income
                Tax Act (Canada))
                with the Borrower outside the ordinary course of
                business.

            

    

     

     

    ARTICLE
      V  

    EVENTS
      OF DEFAULT AND DEFAULT RELATED PROVISIONS

     

        Upon
      the
      occurrence and continuance of an Event of Default (as defined below), the Holder
      may by notice in writing to the Borrower declare the principal amount and all
      accrued interest thereon, and all other amounts, if any, accruing, payable
      or
      owing under this Unsecured Subordinated Debenture to be immediately due and
      payable. 

     

    The
      occurrence of any of the following events set forth in Sections 5.1
      through
      5.7, inclusive, constitutes an “Event
      of Default”:

     

        5.1  Failure
      to Pay Principal, Interest or other Amounts.
      The
      Borrower fails to pay when due any instalment of principal, interest or other
      amounts in accordance herewith, or the Borrower fails to pay when due any amount
      due under any other Unsecured Subordinated Debenture issued by Borrower, and
      in
      any such case, such failure shall continue for a period of five (5) business
      days following the date upon which any such payment was due.

     

        5.2  Breach
      of Covenant.
      The
      Borrower breaches any covenant or any other term or condition of this Unsecured
      Subordinated Debenture in any material respect, and such breach, if subject
      to
      cure, continues for a period of twenty (20) business days after the occurrence
      thereof.

     

        5.3  Receiver
      or Trustee.
      The
      Borrower or any of its subsidiaries shall make an assignment for the benefit
      of
      creditors, or apply for or consent to the appointment of a receiver or trustee
      for it or for a substantial part of its property or business; or such a receiver
      or trustee shall otherwise be appointed, and such appointment is not contested
      by the Borrower in good faith within five (5) business days of such
      appointment.

     

        5.4  Bankruptcy.
      Bankruptcy, insolvency, reorganization or liquidation proceedings or other
      proceedings or relief under any bankruptcy law or any law for the relief of
      debtors shall be instituted by or against the Borrower or any of its
      subsidiaries, unless in any case such proceeding or process is stayed,
      withdrawn, dismissed or vacated, as the case may be, within ninety (90)
      days.

     

        5.5  Default
      Under Other Agreements.
      The
      occurrence and continuance of any event of default (or similar term) by the
      Borrower under any other indebtedness (including
      without limitation any claim under a guarantee, acceleration of or demand under
      existing credit agreements or action taken concerning the enforcement of
      security) which
      is
      not incurred in the ordinary course of business and
      which
      is for an amount in excess of $100,000.

     

        5.6  Default
      Interest Rate.
      Following the occurrence and during the continuance of an Event of
      Default, all
      outstanding obligations under this Unsecured Subordinated Debenture, including
      unpaid interest, shall continue to accrue such interest at eleven percent (11%)
      per annum from the date of such Event of Default until the date such Event
      of
      Default is cured or waived. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

        5.7  Cumulative
      Remedies.
      The
      remedies under this Unsecured Subordinated Debenture shall be
      cumulative.

     

     

          
      ARTICLE VI  

    MISCELLANEOUS

     

        6.1  Currency.
      All
      principal, interest and other amounts owing under this Unsecured Subordinated
      Debenture, that in accordance with their terms, are paid in cash shall be paid
      in Canadian dollars.

     

        6.2  Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of the Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

     

        6.3  Notices.
      Any
      notice herein required or permitted to be given shall be in writing and shall
      be
      deemed effectively received: (a) upon personal delivery to the party notified,
      (b) when sent by confirmed telex or facsimile on the business day of the sending
      (provided it was sent before 4:30 p.m. Toronto time), if not, then on the next
      business day, and the applicable printed facsimile record shall be definitive
      evidence of the time and date of such telex or facsimile transmission, or (c)
      one day after deposit with a nationally recognized overnight courier, specifying
      next day delivery, with written verification of receipt. All communications
      shall be sent to the Borrower at 439 University Avenue, Toronto, Ontario, M5G
      158, attention: James Pelot, Chief Operating Officer and Chief Financial
      Officer, and to the Holder at the address provided in the Subscription Agreement
      for such Holder, or at such other address as the Borrower or the Holder may
      designate by ten (10) days advance written notice to the other parties hereto.
      

     

        6.4  Amendment
      Provision.
      The
      term “Unsecured Subordinated Debenture” and all reference thereto, as used
      throughout this instrument, shall mean this instrument as originally executed,
      or if later amended or supplemented, then as so amended or
      supplemented.

     

        6.5  Assignability.
      This
      Unsecured Subordinated Debenture shall be binding upon the Borrower and its
      successors and assigns, and shall inure to the benefit of the Holder and its
      successors and assigns, and may be assigned by the Holder with the consent
      of
      the Borrower, such consent not to be unreasonably withheld. Notwithstanding
      the
      foregoing, the Holder shall have the right to assign this Unsecured Subordinated
      Debenture to an affiliate (as such term is defined in the Business
      Corporations Act
      (Ontario)) without the consent of the Borrower. This Unsecured Subordinated
      Debenture shall not be assigned by the Borrower without the consent of the
      Holder, such consent not to be unreasonably withheld. All assignments and
      transfers of this Unsecured Subordinated Debenture shall be in accordance with
      applicable securities laws. 

     

        6.6  Governing
      Law.
      This
      Unsecured Subordinated Debenture will be governed by, interpreted and enforced
      in accordance with the laws of the Province of Ontario and the federal laws
      of
      Canada applicable therein. 

     

        6.7  Maximum
      Payments.
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum permitted by such law, any payments in excess
      of
      such maximum shall be credited against amounts owed by the Borrower to the
      Holder and thus refunded to the Borrower.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

        6.8  Construction.
      Each
      party acknowledges that its legal counsel participated in the preparation of
      this Unsecured Subordinated Debenture and, therefore, stipulates that the rule
      of construction that ambiguities are to be resolved against the drafting party
      shall not be applied in the interpretation of this Unsecured Subordinated
      Debenture to favor any party against the other. 

     

        6.9  Counterparts.
      This
      Unsecured Subordinated Debenture may be executed in any number of counterparts
      and all such counterparts taken together shall be deemed to constitute one
      and
      the same instrument.

     

        6.10  Cost
      of Collection.
      If
      default is made in the payment of this Unsecured Subordinated Debenture, the
      Borrower shall pay to Holder reasonable costs of collection, including
      reasonable legal fees. 

     

        6.11  Third
      Party Beneficiary Clause.
      There
      are no third party beneficiaries under this Unsecured Subordinated Debenture
      other than the holders of Senior Debt.

     

    

        IN
      WITNESS
      WHEREOF,
      the
      parties have executed this Unsecured Subordinated Debenture as of this _____
      day
      of August, 2006.

     

    
      	 	 	 
	 	TM
              BIOSCIENCE CORPORATION
	 
 	 
 	 
 
	
            	By:  	/s/ James
              Pelot 
	 	
              
Name:  James
              Pelot 
	 	Title 

    

     

     

    
      	 	 	 
	 	JAYVEE
              & CO 
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	
              
Name: 
	 	Title 

    

     

     

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    

     

    SCHEDULE
      “A” 

     

    PERMITTED
      ENCUMBRANCES

     

    “Permitted
      Encumbrances”
means
      any of the following:

    

    
      	
              (i)

            	
              liens
                for taxes, assessments, governmental charges or levies not at the
                time due
                unless contested in good faith by all necessary proceedings;
                

            

    

     

    
      	
              (ii)

            	
              defects
                or irregularities in title to land, easements, rights of way or other
                similar rights in land existing at the date hereof which individually
                or
                in the aggregate do not materially impair the usefulness in the business
                of the Borrower, its subsidiaries or the property subject
                thereto;

            

    

     

    
      	
              (iii)

            	
              rights
                reserved to or vested in any municipality or governmental or other
                public
                authority by the terms of any lease, licence, franchise, grant or
                permit,
                or by any statutory provision, to terminate the same or to require
                annual
                or other periodic payments as a condition to the continuance
                thereof;

            

    

     

    
      	
              (iv)

            	
              any
                lien or encumbrance the validity of which is being contested by the
                Borrower in good faith and in respect of which either there shall
                have
                been deposited with the Holder cash in an amount sufficient to satisfy
                the
                same or the Holder shall be otherwise satisfied that its interests
                are not
                prejudiced thereby;

            

    

     

    
      	
              (v)

            	
              any
                reservations, limitations, provisos and conditions expressed in any
                original grant from the Crown;

            

    

     

    
      	
              (vi)

            	
              title
                defects or irregularities which, in the opinion of counsel to the
                Holder,
                are of a minor nature and in the aggregate shall not materially impair
                the
                usefulness in the business of the Company or its
                Subsidiaries;

            

    

     

    
      	
              (vii)

            	
              a
                security interest in cash or governmental obligations deposited in
                the
                ordinary course of business in connection with contracts, bids, tenders
                or
                to secure worker’s compensation, unemployment insurance, surety or appeal
                bonds, costs of litigation when required by law, public and statutory
                obligations, liens or claims incidental to current construction,
                mechanics’, warehousemen’s, carriers’ and other similar
                liens;

            

    

     

    
      	
              (viii)

            	
              security
                given in the ordinary course of business to a public utility or any
                municipality or governmental or other public authority when required
                by
                such utility or municipality or governmental or other authority in
                connection with the operations of the Borrower or any of its subsidiaries;
                

            

    

     

    
      	
              (ix)

            	
              a
                security interest arising under a lease (other than a lease for real
                property) entered into in the ordinary course of business over the
                goods
                that are the subject matter of such lease, to an aggregate amount
                of
                $500,000; 

            

    

     

    
      	
              (x)

            	
              a
                security interest in or title retention relating to equipment (not
                constituting, for greater certainty, inventory) which is created
                to secure
                the unpaid purchase price thereof or retain title thereto until so
                paid,
                provided that each such security interest is limited to the asset
                so
                acquired (and any insurance or other proceeds thereof) and does not
                secure
                an amount in excess of the purchase price thereof or any re-advance
                on the
                security of the equipment; 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (xi)

            	
              security
                interests or any security granted by the Company in connection with
                the
                letter of credit issued by the Royal Bank of Canada in favour of
                Luminex
                Corporation and in connection with the secured convertible note issued
                by
                the Borrower to Laurus Master Fund, Ltd., and any refinancings and
                renewals thereof; 

            

    

     

    
      	
              (xii)

            	
              other
                encumbrances arising by operation of law or which are not material
                in
                character, amount, and extent and do not materially detract from
                the value
                of the property subject thereto, the use of the Borrower’s or any of its
                subsidiaries’ assets or materially impair the operations of the Borrower
                or any of its subsidiaries; and

            

    

     

    
      	
              (xiii)

            	
              liens
                held by customers or suppliers of the Borrower or any of its subsidiaries
                in respect of the work-in-progress relating to: (i) goods under production
                for customers and any assignment of such liens to third parties as
                approved by the Holder; (ii) all equipment drop shipped to the Borrower
                or
                any of its subsidiaries by its customers (or suppliers) for integration
                to
                machinery which is owned by such customers (or suppliers); and (iii)
                in
                leasehold improvements. 

            

    

     

    

     

    
      
        
        

      

      
        2Employment Agr

Exhibit
    10.1

    EMPLOYMENT
      AGREEMENT

     

    This
      Employment Agreement (the “Agreement”)
      is
      entered into by and between Rim Semiconductor Company (the “Company”), and David
      Wojcik (the “Employee”).
      The
      Company desires to employ the Employee, and the Employee desires to be employed
      by the Company. Therefore, in consideration of the mutual promises and
      agreements contained herein, the parties hereby agree as follows:

     

    SECTION
      1 - EMPLOYMENT

     

    1.1 Employment.
      The
      Company hereby employs the Employee and the Employee hereby accepts employment
      by the Company for the period and upon the terms and conditions contained in
      this Agreement. Employment will commence on September 1, 2006. The Employee
      is employed at-will, which means that either the Company or the Employee can
      end
      the employment relationship at any time, with or without reason or notice,
      however Employee will be eligible for a Severance Payment, (a) if the Company
      ends his employment for any reason other than Good Cause following a written
      notice and a thirty (30) day “cure” period excluding 2, 4, 5 & 6 within the
      definition of Good Cause below; or (b) if the Employee resigns for Good Reason.
      “Good Cause” is defined as (1) willful failure or neglect by the Employee
      to substantially perform his assigned duties following a written notice and
      a
      thirty (30) day “cure” period (other than a failure to perform resulting from
      Employee’s disability due to his illness or injury); (2) engaging in
      criminal conduct or conduct constituting moral turpitude; (3) willful
      insubordination; (4) embezzlement, theft or misappropriation of the
      Company’s property; (5) fraud, acts of dishonesty or misrepresentation or
      other acts (including any breach of the Employee’s covenants contained in this
      Agreement) that cause harm to the Company or substantial damage to its
      reputation (other than as a consequence of good faith decisions made by the
      Employee in the normal performance of his duties); (6) conviction for or
      plea of no contest to a felony offense; (7) material breach of this
      Agreement or any written policies of the Company; (8) breach of the
      Employee’s fiduciary obligations to the Company; or (9) any substance abuse
      which materially affects the performance of Employee’s duties and
      responsibilities to the Company. “Good Reason” is defined as (1) the Company’s
      material breach of this Agreement following a thirty (30) day “cure period”; (2)
      a material and adverse change in Employee’s duties and responsibilities with the
      Company which change is inconsistent with his current title; (3) if Employee
      moves to Portland, OR, any relocation of Employee’s principal business location
      to more than fifty (50) miles from Portland, OR; or (4) a Change in Control
      as
      defined in the Stock Option Agreement between the Company and the Employee.
      The
“Severance Payment” is defined as twelve months of Employee’s base salary in
      effect on the date of termination of employment.

     

    1.2 Office
      and Duties.
      The
      Employee shall serve the Company as Senior Vice President, with the authority,
      duties and responsibilities customarily incident to such office. The Employee
      shall perform such other services commensurate with his position as may from
      time to time be assigned to the Employee by the President and CEO of the
      Company. Further, the Employee’s actions shall at all times be subject to the
      direction of the President and CEO of the Company.

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

     

    1.3 Performance.
      While
      employed under this Agreement, the Employee shall devote on a full-time basis
      his best efforts to the performance of his duties hereunder in a manner that
      will faithfully and diligently further the business and interests of the
      Company. The Employee shall comply with the employee policies or written manuals
      of the Company as they exist from time to time as applicable generally to the
      Company’s employees. The Employee shall not work either on a part-time or
      independent contractor basis for any other business or enterprise while employed
      under this Agreement, provided however, nothing herein shall preclude Employee
      from serving on the Boards of other companies or charitable organizations and
      so
      long as such service does not interfere with the performance of the Employee’s
      duties hereunder.

     

    1.4 Place
      of Work.
      The
      Employee shall perform services under this Agreement [Option:
      at the Company’s principal office in Portland, Oregon],
      and at
      such other place or places as the Employee and the Company shall mutually agree.
      In addition, the Employee understands and agrees that he may be required to
      travel extensively in connection with the performance of his
      duties.

     

    SECTION
      2 - COMPENSATION FOR EMPLOYMENT

     

    2.1 Base
      Salary.
      The
      base annual compensation of the Employee for all of his employment services
      to
      the Company under this Agreement shall be $225,000.00, which the Company shall
      pay to the Employee in equal installments and in accordance with the normal
      payroll policies of the Company. The base annual compensation may be increased
      at the sole discretion of the President and CEO of the Company.

     

    2.2 Quarterly
      Bonus.
      The
      Employee shall be entitled to receive a quarterly bonus of $40,000.00 per fiscal
      quarter, to be determined by the Compensation Committee or designee which has
      the right to set objectives and review the Employee’s accomplishment toward
      those objectives, and pay the bonus or portion thereof, if earned. Further,
      the
      Employee must remain employed by the Company through the end of any fiscal
      quarter, in order to be eligible for the bonus arising from services performed
      during that quarter. Any such bonus will be paid to Employee no later than
      the
      fifth business day of the ensuing calendar quarter. The Company agrees that
      Employee may be eligible for the full amount of bonus for the quarter ending
      October 31, 2006 and it will not be prorated in proportion to the days
      actually worked in that quarter.

     

    2.3 Commission.
      TBD.

     

    2.4 Stock
      Options.
      All
      options previously granted to Employee to purchase Company common stock are
      deemed immediately vested. The Company agrees to grant Employee an option to
      purchase up to an additional 3.5 million shares of Company common stock at
      an exercise price of $0.158 per share, in accordance with the vesting and other
      provisions of an Option Agreement substantially in the form provided to
      Employee.

     

    2.5 Payment
      and Reimbursement of Expenses.
      The
      Company shall pay or reimburse the Employee for all reasonable travel and other
      expenses incurred by the Employee in performing his obligations under this
      Agreement in accordance with the policies and procedures of the Company,
      provided that the Employee properly accounts for such expenses in accordance
      with the regular policies of the Company.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    2.6 Other
      Benefits.
      While
      employed under this Agreement, the Employee shall be entitled to participate
      in
      or receive benefits under any health and welfare or retirement type plan or
      arrangement made available by the Company and on terms no less favorable than
      those afforded to its senior executive employees (including any medical, dental,
      short-term and long-term disability, life insurance and 401(k) programs),
      subject to and on a basis consistent with the terms, conditions and overall
      administration of such plans and arrangements. Any such plan or arrangement
      shall be revocable and subject to termination or amendment at any time. The
      Employee shall be entitled to twenty (20) business days of vacation per calendar
      year.

     

    2.7 Relocation
      Expenses.
      If the
      Employee agrees to relocate, the Company agrees to relocate Employee and his
      immediate family from Denver, CO to Portland, OR and to provide a relocation
      bonus of $100,000.00 and reimburse the Employee for covered costs, up to a
      limit
      of $25,000.00. Covered costs include: (1) air fare, lodging, meals and
      local transportation incurred during two trips by Employee and Employee’s spouse
      to Portland, OR to search for housing; (2) a licensed brokers’ commission
      and closing costs on Employee’s current primary residence; (3) movement of
      household effects including up to two motor vehicles; and (4) temporary
      lodging for up to three months while searching for or preparing the residence
      in
      Portland, OR. Other costs, if any, may be approved in advance by the President
      and CEO upon written request by the Employee. The Company agrees to gross up
      payments to Employee under this paragraph that exceeds limits imposed by the
      Internal Revenue Service. Employee will sign a separate Relocation Agreement,
      in
      which Employee agrees to repay the Company for a prorated amount of the
      reimbursed covered costs, should he leave employment with the Company within
      six
      months of the effective date of this Agreement, unless such termination of
      employment was due to Employee’s death, disability or a reduction in
      force.

     

    SECTION
      3 - CONFIDENTIAL INFORMATION

     

    3.1 Confidential
      Information.
      The
      Company agrees that it will provide Employee with specialized knowledge
      regarding the Company’s business, and will provide Employee with initial and
      ongoing confidential information and trade secrets of the Company and its
      subsidiaries (hereinafter referred to as “Confidential Information”). For
      purposes of this Agreement, Confidential Information includes, but is not
      limited to, any software developed by the Company and documentation relating
      to
      such software, product specifications and documentation related to such
      specifications, technology developed by the Company and documentation related
      to
      such technology, recruiting methodology, sales methodology, information
      regarding the Company’s customers/clients, pricing information, sales
      procedures, operating procedures, marketing plans and procedures, financial
      information, engineering information, other technical or business information
      of
      the Company, and any other information which Employee has reason to believe
      the
      Company would not want disclosed to the public or to a third party. Employee
      understands and acknowledges that such Confidential Information gives the
      Company a competitive advantage over others who do not have the information,
      and
      that the Company would be harmed if the Confidential Information were
      disclosed.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    3.2 Disclosure
      Of Confidential Information.
      Employee agrees that he will hold all Confidential Information in trust for
      the
      Company and will not: (1) use the information for any purpose other than
      the benefit of the Company; or (2) disclose to any person or entity any
      Confidential Information except as necessary during Employee’s employment with
      the Company to perform services on behalf of the Company. Employee will also
      take reasonable steps to safeguard such Confidential Information and to prevent
      its disclosure to unauthorized persons.

     

    3.3 Return
      Of Information.
      Upon
      termination of employment, or at any earlier time as directed by the Company,
      Employee shall immediately deliver to the Company any and all Confidential
      Information in Employee’s possession, any other documents or information which
      Employee acquired as a result of his employment with the Company and any copies
      of any such documents/information. Employee shall not retain any originals
      or
      copies of any documents or materials related to the Company’s business which
      employee came into possession of or created as a result of his employment with
      the Company. Employee acknowledges that such information, documents and
      materials are the exclusive property of the Company. In addition, upon
      termination of employment, or at any time earlier as directed by the Company,
      Employee shall immediately deliver to the Company any property of the Company
      in
      the Employee’s possession.

     

    SECTION
      4 - OWNERSHIP OF INFORMATION,

     

    INVENTIONS
      AND ORIGINAL WORK

     

    4.1 Ownership
      Of Information, Inventions And Original Work.
      Employee agrees that any creative works, discoveries, designs, software,
      computer programs, inventions, improvements, modifications, enhancements,
      know-how, formulation, concept or idea which is conceived, created or developed
      by Employee, either alone or with others (collectively referred to as “Work
      Product”) is the exclusive property of the Company if either:

     

    a. it
      was
      conceived or developed in any part on Company time;

     

    b. any
      equipment, facilities, materials or Confidential Information of the Company
      was
      used in its conception or development; or

     

    c. it
      either: (i) relates, at the time of conception or reduction to practice, to
      the Company’s business or to an actual or demonstrably anticipated research or
      development project of the Company, or (ii) results from any work performed
      by Employee for the Company.

     

    With
      respect to any such Work Product, Employee agrees as follows:

     

    a. Employee
      shall promptly disclose the Work Product to the Company;

     

    b. Employee
      agrees to assign, and hereby does assign, all proprietary rights to such Work
      Product to the Company without further compensation;

     

    c. Employee
      agrees not to file any patent or copyright applications related to such Work
      Product except with the written consent of the President and CEO of the
      Company;

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    d. Employee
      agrees to assist the Company in obtaining any patent or copyright on such Work
      Product, and to provide such documentation and assistance as is necessary to
      the
      Company to obtain such patent or copyright; and

     

    e. Employee
      shall maintain adequate written records of such Work Product, in such a format
      as may be specified by the Company. Such records will be available to and remain
      the sole property of the Company at all times.

     

    Any
      Work
      Product disclosed by Employee within one (1) year following the termination
      of
      employment from the Company shall be deemed to be owned by the Company under
      the
      terms of this Agreement, unless proved by the Employee to have been conceived
      after such termination.

     

    SECTION
      5 - RESTRICTIVE COVENANTS

     

    5.1 Restrictive
      Covenants.
      Employee acknowledges that in order to effectuate the promise to hold
      Confidential Information in trust for the Company, it is necessary to enter
      into
      the following restrictive covenants. Without the prior written consent of the
      Company, Employee shall not, during employment at the Company or for a period
      of
      one year following the termination of employment:

     

    a. Solicit,
      induce or attempt to solicit or induce, on behalf of himself or any other person
      or entity, any employee of the Company to terminate their employment with the
      Company;

     

    b. Solicit
      business from, attempt to do business with, or do business with any person
      or
      entity that was a customer/client of the Company during Employee’s employment
      with the Company, if such business is in the scope of services or products
      provided by the Company. The geographic area for purposes of this restriction
      is
      the area where the customer/client is located and/or does business;

     

    c. Engage
      in
      or perform services for a Competing Business. For purposes of this Agreement,
      “Competing Business” is one which provides the same or substantially similar
      products and services as those provided by the Company during Employee’s
      employment, including but not limited to providers of semiconductor technology.
      The geographic area for purposes of this restriction is the area(s) within
      a 50
      mile radius of any Company office in existence during Employee’s employment with
      the Company; or

     

    d. Have
      any
      indirect or direct financial interest in a Competing Business; provided,
      however, that the ownership by Employee of any stock listed on any national
      securities exchange of any corporation conducting a competing business shall
      not
      be deemed a violation of this Agreement if the aggregate amount of such stock
      owned by Employee does not exceed one percent (1%) of the total outstanding
      stock of such corporation.

     

    Employees
      agrees that these restrictive covenants (1) are reasonable in scope for the
      purpose of protecting the Company’s business interests; (2) will not
      interfere with the Employee’s ability to pursue his livelihood after termination
      of the Agreement; (3) do not impose a greater restraint than is necessary
      to protect the Confidential Information, goodwill and other business interests
      of the Company and that the Employee has received adequate consideration under
      this Agreement to support his return promises.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    SECTION
      6 - REMEDIES

     

    6.1 Remedies.
      In the
      event of a breach of this Agreement by Employee, the Company shall be entitled
      to all appropriate equitable and legal relief, including, but not limited to:
      (1) injunction to enforce this Agreement or prevent conduct in violation of
      this
      Agreement; (2) damages incurred by the Company as a result of the breach; and
      (3) attorneys’ fees and costs incurred by the Company in enforcing the terms of
      this Agreement. Additionally, any period or periods of breach of Section 5
      of this Agreement shall not count toward the one (1) year restriction, but
      shall
      instead be added to the one (1) year restrictive period.

     

    SECTION
      7 - REPRESENTATION BY EMPLOYEE

     

    7.1 Representation
      by Employee.
      Employee hereby represents and warrants to the Company that the execution of
      this Agreement by Employee and Employee’s performance of his duties hereunder
      will not conflict with, cause a default under, or give any party a right to
      damages under any other agreement to which Employee is a party or is
      bound.

     

    SECTION
      8 - GENERAL

     

    8.1 Governing
      Law.
      This
      Agreement shall be governed by and construed under the laws of the State of
      Oregon or, at the Company’s sole option, by the laws of the state or states
      where this Agreement may be at issue in any litigation involving the Company.
      Venue of any litigation arising from this Agreement shall be in a court of
      competent jurisdiction in Multnomah County, Oregon.

     

    8.2 Binding
      Effect.
      All of
      the terms and provisions of this Agreement shall be binding upon and inure
      to
      the benefit and be enforceable by the respective heirs, representatives,
      successors (including any successor as a result of a merger or similar
      reorganization) and assigns of the parties hereto, except that the duties and
      responsibilities of the Employee hereunder are of a personal nature and shall
      not be assignable in whole or in part by the Employee, and the Company may
      not
      assign its rights, duties, or responsibilities without the consent of the
      Employee.

     

    8.3 Notices.
      All
      notices required to be given under this Agreement shall be in writing and shall
      be deemed to have been given and received when personally delivered, or when
      mailed by registered or certified mail, postage prepaid, return receipt
      requested, or when sent by overnight delivery service, addressed as
      follows:

     

    
      	
              If
                to the Employee:

               

            	
              David
                Wojcik

              c/o
                Rim Semiconductor Company

              305
                N.E. 102nd Avenue, Ste. 105

              Portland,
                OR 97220

            

    

     

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    
      	
              If
                to the Employer:

               

            	
              Brad
                Ketch

              President
                and CEO

              Rim
                Semiconductor Company

              305
                N.E. 102nd Avenue, Ste. 105

              Portland,
                OR 97220

            
	 	 

    

    Such
      addresses may be changed from time to time by written notice to the other
      party.

     

    8.4 Entire
      Agreement; Modification.
      This
      Agreement constitutes the entire agreement of the parties hereto with respect
      to
      the subject matter hereof and supersedes all other agreements (oral or written)
      with respect to the subject matter hereof. This Agreement may not be modified
      or
      amended in any way except in writing by the parties hereto.

     

    8.5 Duration.
      Notwithstanding the termination of Employee’s employment by the Company, this
      Agreement shall continue to bind the parties for so long as any obligations
      remain under the terms of this Agreement.

     

    8.6 Waiver.
      No
      waiver of any breach of this Agreement shall be construed to be a waiver as
      to
      succeeding breaches.

     

    8.7 Severability.
      In the
      event any court of competent jurisdiction holds any provision of this Agreement
      to be invalid, the remaining provisions shall not be affected or invalidated
      and
      shall remain in full force and effect.

     

    8.8 Subsidiaries.
      Wherever the term Company is referred to in this Agreement, it shall include
      all
      subsidiaries of the Company even where the term “subsidiaries” is not explicitly
      stated in connection with such reference, as such subsidiaries may exist from
      time to time.

     

    IN
      WITNESS WHEREOF, the parties hereto, intending to be legally bound, have duly
      executed this Agreement as of the day and year first written above.

     

                    EMPLOYEE:

    

                    /s/
      David
      Wojcik

                    David
      Wojcik

    

                    Date:
9/1/06

    

    

                    RIM
      SEMICONDUCTOR
      COMPANY:

    

                    By:
/s/
      Brad Ketch

                    Brad
      Ketch

                    President
      and
      CEO

    

                    Date:
September
      1, 2006

     

    -7-

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