Document:

ex10-1.htm

Exhibit 10.1

 

LICENSE AGREEMENT

 

This LICENSE AGREEMENT (the “License Agreement”), dated June 14, 2016 (the “Effective Date”), is by and between NUVECTRA CORPORATION, a corporation and existing under the laws of the State of Delaware (hereinafter referred to as “Licensor”) and Aleva Neurotherapeutics SA, a Swiss share company registered under the federal identification number CHE-114.416.910, EPFL Innovation Park, Building D, 1015 Lausanne, Switzerland (hereinafter referred to as “Licensee”). The Licensor and the Licensee are sometimes referred to herein collectively as the “parties” and individually as a “party.”

 

WHEREAS, Licensor owns patents, patent applications and other intellectual property;

 

WHEREAS, Licensor desires to grant, and Licensee desires to obtain, a license with respect to the Licensed IP, including the Licensed Patent Applications (as defined below) and Licensed Patents (as defined below), which are listed on Exhibit A attached hereto, for applications in the Field of Use; and

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the parties hereby agree as follows:

 

Article I.     

DEFINITIONS

 

Section 1.01     Capitalized terms utilized in this License Agreement and not otherwise defined herein shall have the respective meanings assigned and ascribed to them under this Article I, as follows:

 

(a)     “Affiliate” of a Person means any other Person that, whether now or in the future, controls, is controlled by or is under common control with, such Person. For the purposes of this definition, the terms “controls”, “controlled by” and “under common control with” means (i) to possess (directly or indirectly) the power to direct the management or affairs of a Person, whether through ownership of voting securities or other equity rights or by contract relating to voting rights or corporate governance or otherwise, or (ii) to own, directly or indirectly, more than fifty percent (50%) of the outstanding voting securities or other ownership interest of such Person.

 

(b)     “Bankruptcy Proceeding” shall have the meaning assigned and ascribed to such term under Section 9.03(a) hereof.

 

(c)     “Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by applicable law to be closed for business.

 

(d)     “Change of Control” means (i) a consolidation or merger of a party or other change of control transaction in which the stockholders of a party immediately prior to such transaction do not continue to hold a greater than 50% interest in the successor or survivor entity immediately following such transaction, (ii) a transaction or series of transactions that results in the transfer of more than 50% of the voting power of a party to a person or entity, or (iii) the sale, lease, transfer or other disposition of all or substantially all of the assets of a party (which shall include any effective transfer of such assets regardless of the structure of any such transaction as a license or otherwise). 

 

 

 

 

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(e)     “Confidential Information” of a party means any and all information of a confidential or proprietary nature disclosed by a party under this License Agreement, whether in oral, written, graphic or electronic format, which includes, but is not limited to, trade secrets, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, diagrams, data, business activities and operations, customer lists, reports, studies and other technical and business information.

 

(f)     “Damages” shall have the meaning assigned and ascribed to such term in Section 12.01.

 

(g)     “DBS System” means a neurostimulation medical device system for applications within the Field of Use that (i) is derived from, based upon or incorporates Technical Know-How or is within the scope of one or more claims of any Licensed Patent Application or Licensed Patent and (ii) consists primarily of components derived from or based upon the components of the Algovita Spinal Cord Stimulation System described on Exhibit B hereto.

 

(h)     “Development Agreement” means that certain Development Agreement by and between Licensor and Licensee, dated as of January 29, 2016.

 

(i)     “Effective Date” shall have the meaning assigned and ascribed to such term in the recitals to this License Agreement.

 

(j)     “Exclusive Distribution License” shall have the meaning assigned and ascribed to such term in Section 2.01(a).

 

(k)      “FDA Approval” means the receipt of all Regulatory Approvals from the FDA that would permit Licensor to sell the Licensed Products in the United States for applications within the Field of Use.

 

(l)     “FDA” means the United States Food and Drug Administration or any successor entity.

 

(m)     “Field of Use” means deep brain stimulation for movement disorders (i.e. Parkinson’s disease and/or essential tremor).

 

(n)     “Governmental Body” shall mean any (i) nation, state, county, city, town, village, district or other jurisdiction; (ii) federal, state, provincial, municipal, local, foreign or other government; or (iii) governmental or quasi-governmental authority (including any governmental agency branch, department, official or entity, and any court or other tribunal).

 

 

 

 

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(o)     “Greatbatch” means Greatbatch Ltd., a corporation incorporated under the laws of the state of New York.

 

(p)     “Greatbatch Affiliate” means each Affiliate of Greatbatch. 

 

(q)     “Greatbatch License Agreement” means that certain Unrestricted License Agreement by and between Greatbatch and Licensor, dated as of March 14, 2016, as such agreement may be further amended from time to time.

 

(r)     “Indemnified Parties” shall have the meaning assigned and ascribed to such term under Section 12.01.

 

(s)     “Intellectual Property” means U.S. and foreign patents, patent applications, copyrights and copyright registrations and applications, mask works and registrations thereof, know-how and Inventions.

 

(t)     “Invention” means any invention, discovery, know-how, copyright, trade secret, data, information, technology, process or concept, whether or not patented or patentable, and whether or not memorialized in writing.

 

(u)     “License Agreement” shall have the meaning assigned and ascribed to such term in the recitals to this License Agreement.

 

(v)     “License Conversion Date” means the date of the occurrence of a License Conversion Event.

 

(w)     “License Conversion Event” means the first to occur of (i) receipt of a Conformité Européenne (CE) mark for the Licensed Products that permits sale of such Licensed Products within the European Economic Area for application within the Field of Use; (ii) receipt of FDA Approval or (iii) completion by the Licensee of a human clinical study demonstrating safety and efficacy required to obtain (A) a Conformité Européenne (CE) mark for the Licensed Products that permits sale of such Licensed Products within the European Economic Area for applications within the Field of Use, or (B) FDA Approval.

 

(x)     “Licensed Patent Applications” shall mean those United States or foreign pending patent applications listed on Exhibit A.

 

(y)     “Licensed Patents” shall mean those United States or foreign patents listed in Exhibit A; together with any patents resulting from (i) a Licensed Patent Application, (ii) any continuation, continuation-in-part, division, reissue, reexamination, and extension of such patents, and/or (iii) any invention disclosure report arising from an Invention that has been documented prior to or as of the Effective Date.

 

(z)     “Licensed Products” shall mean the DBS System or any main component of the DBS System in such form and with such design and specifications as set forth in any regulatory submission, or any supplement related to such submission, used to obtain Regulatory Approval for the DBS System anywhere in the Territory; provided, however, that any product accessories, including, without limitation, torque wrenches, introducers, tunneling tools and adjustable belts, are not hereby included as Licensed Products. Furthermore, and for the avoidance of doubt, any products developed solely by Aleva and covered by Aleva’s Intellectual Property, but are not derived from or based upon, or do not incorporate, Licensed IP, including, without limitation, directional leads, burr hole covers, and other products solely developed by Aleva, are not hereby included as Licensed Products. 

 

 

 

 

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(aa)     “Licensed IP” means the Licensed Patents, the Licensed Patent Applications, and the Technical Know-How.

 

(bb)     “Licensee” shall have the meaning assigned and ascribed to such term in the recitals to this License Agreement.

 

(cc)     “Licensor” shall have the meaning assigned and ascribed to such term in the recitals to this License Agreement.

 

(dd)     “Licensor Affiliate” means each Affiliate of Licensor.

 

(ee)     “Modified Product” means any Licensed Product that has been redesigned or modified as compared to the form, design or specifications for such Licensed Product set forth in any regulatory submission or any supplement related to such submission used to obtain Regulatory Approval for the DBS System or its components anywhere in the Territory, such that a separate regulatory submission and Regulatory Approval for such Licensed Product would be required prior to the sale of such Licensed Product in its modified form.

 

(ff)     “Net Sales” means total gross amount of monies, cash or cash equivalent or other consideration paid by unaffiliated third parties to Licensee for sales of Licensed Products less the sum of the following: (a) discounts or rebates allowed in amounts customary in the trade; (b) sales, tariff duties and use taxes directly imposed and with reference to particular sales; (c) outbound transportation prepaid or allowed; and (d) amounts allowed or credited on returns. No deductions from Net Sales shall be made for commissions paid to individuals whether they are with independent sales agencies or regularly employed by Licensee and on its payroll, or for cost of collections. Licensed Products shall be considered “sold” when billed or invoiced.

 

For the purposes of calculating Net Sales, (a) all calculations of Net Sales shall be in accordance with United States generally accepted accounting principles consistently applied and based on, or valued as if based on, bona fide arms’ length transactions and not on any bundled, loss-leading or other blended or artificial selling or transfer price and (b) transfers of Licensed Products to an Affiliate for (i) end use (but not resale) by the Affiliate shall be treated as sales by Licensee at Licensee’s list price, or (ii) resale by an Affiliate shall be treated as the Affiliate’s sales at its list price.

 

Where Licensed Products are not sold, but are otherwise transferred or disposed of, the Net Sales of Licensed Product for the purposes of computing the Royalty Fee shall be the average Net Sales price at which products of similar kind and quality, sold in similar quantities and similar locations, are then currently being offered for sale by Licensee. Where such products are not then currently being offered for sale by Licensee, the Net Sales price of products otherwise disposed of, for the purpose of computing the Royalty Fee, shall be the average selling price at which products of similar kind and quality, sold in similar quantities and similar locations, are then currently being offered for sale by other manufacturers. 

 

 

 

 

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The expression “transferred or otherwise disposed of” means (y) not sold but delivered, directly or indirectly, by Licensee to others (including deliveries for export), regardless of any return or exchange consideration; or (z) exploited or otherwise used by Licensee for any purpose other than routine testing of such Licensed Products.

 

(gg)     “Non-Exclusive Distribution License” shall have the meaning assigned and ascribed to such term in Section 2.01(a).

 

(hh)     “Person” shall mean any individual, and any corporation, partnership, sole proprietorship, company, firm, association, trust, or governmental agency. 

 

(ii)     “Quarterly Period” means each three-month period commencing on January 1, April 1, July 1 and October 1 in each year.

 

(jj)     “Regulatory Approvals” means all approvals necessary for the commercial sale of a Licensed Product for any indication in a given country or regulatory jurisdiction in the Territory, which shall include satisfaction of all applicable regulatory and notification requirements, but which shall exclude any pricing and reimbursement approvals.

 

(kk)     “Royalty Fee” shall have the meaning assigned and ascribed to such term in Section 8.01.

 

(ll)     “Supply Agreement” means that certain Supply Agreement by and between Greatbatch and Licensee, dated as of June 2, 2016.

 

(mm)     “Technical Know-How” shall include all concepts, methods, devices and/or ideas directed or relating to the Inventions covered by the Licensed Patents or Licensed Patent Applications, some of which may be described or summarized in attached Exhibit A, as and to the extent presently configured, or as may be disclosed in a Licensed Patent Application.

 

(nn)     “Term” shall have the meaning assigned and ascribed to such term under Section 9.01.

 

(oo)     “Territory” shall mean the entire world.

 

(pp)     “Third-Party Claim” shall have the meaning assigned and ascribed to such term under Section 12.02.

 

 

 

 

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Article II.

 

LICENSE GRANT

 

Section 2.01     (a)     Subject to the terms and conditions of this License Agreement, the Licensor hereby grants to the Licensee, and the Licensee hereby accepts, a non-exclusive, royalty-bearing right and license under the Licensed IP to use, make, have made, sell, offer to sell, distribute and import Licensed Products in the Territory during the Term for applications within the Field of Use; provided, however, that upon the occurrence of a License Conversion Event, the portion of the non-exclusive license under this Section 2.01(a) consisting of the non-exclusive, royalty-bearing license to sell, offer to sell, distribute and import Licensed Products in the Territory during the Term for applications within the Field of Use (the “Non-Exclusive Distribution License”) shall immediately, and without the need for any action on the part of either party, convert into an exclusive, royalty-bearing license to sell, offer to sell, distribute and import Licensed Products in the Territory during the Term for applications within the Field of Use (the “Exclusive Distribution License”); provided, however, that the exclusivity of such Exclusive Distribution License shall be subject to, and shall not impact, any license rights previously granted in favor of Greatbatch pursuant to the Greatbatch License Agreement; provided, further, however, that if the Licensee fails to obtain FDA Approval for the Licensed Products within six (6) years after the License Conversion Date, the Exclusive Distribution License shall become convertible by the Licensor, at its sole discretion, back into a Non-Exclusive Distribution License. For the avoidance of doubt, during the Term, the non-exclusive, royalty-bearing license to use, make and have made Licensed Products in the Territory during the Term for applications within the Field of Use shall continuously remain a non-exclusive license.

 

(b)     The parties acknowledge and agree that the license granted to Licensee under Section 2.01(a) does not and shall not be construed to prohibit or restrict Licensor, any Licensor Affiliate, Greatbatch or any Greatbatch Affiliate from using or otherwise exploiting the Licensed IP (i) to make, have made, use, offer to sell, sell, distribute and import any Licensed Product for applications outside of the Field of Use or (ii) to make, have made, use, offer to sell, sell, distribute and import any Modified Product for applications within or outside of the Field of Use.

 

Section 2.02     Except for the rights and licenses granted by Licensor under this License Agreement, this License Agreement does not grant to Licensee or any other Person any right, title or interest by implication, estoppel, or otherwise. Without limitation of the foregoing, nothing in this License Agreement shall be construed as granting by implication, estoppel, or otherwise, any right, title or interest in, to or under any Licensor or Licensor Affiliate patent or patent application, other than the Licensed IP, regardless of whether such other patents are dominant or subordinate to any Licensed IP. All rights, titles and interests not specifically and expressly granted by Licensor hereunder are hereby reserved.

 

Section 2.03     For the avoidance of doubt, the parties acknowledge and confirm that Licensor retains the right to use, and to have its Affiliates use, the Licensed IP and any and all Inventions disclosed and/or claimed in the Licensed Patent Applications and the Licensed Patents for all applications outside of the Field of Use. In addition, Licensee shall not, and shall not permit any of its Affiliates to, use any Licensed IP outside of the specific scope of the license granted to it under this License Agreement.

 

 

 

 

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Section 2.04     From time to time as reasonably necessary to reflect changes in the status of the Licensed IP, the Licensor will update Exhibit A and provide a copy thereof in writing to the Licensee. The Licensee may also make a written request that Exhibit A be updated, in which case the Licensor will promptly provide the Licensee with a revised Exhibit A that sets forth all of the then Licensed IP and the current status thereof.

 

Article III.

 

SUBLICENSES

 

The Licensee shall provide to Licensor all proposed, unexecuted written agreements pursuant to which Licensee would sublicense any Licensed IP for the Licensor’s prior review and written approval. The Licensee shall not enter into any sublicense agreement with respect to the Licensed IP without Licensor’s prior written consent, which consent may be withheld by Licensor in its absolute and sole discretion. Any permitted sublicensees shall be prohibited from granting any further sublicenses. 

 

Article IV.

 

PATENT RIGHTS; INTELLECTUAL PROPERTY

 

Section 4.01     [Reserved.] 

 

Section 4.02     Licensor agrees to use reasonable commercial efforts to protect the Licensed IP licensed hereunder to Licensee by obtaining and maintaining appropriate patent rights as recommended by reputable patent counsel; provided, however, that Licensee shall have the rights provided below in Section 4.03 of this License Agreement subject to the right of Licensor to determine, in good faith, not to file or prosecute an unpublished patent application and to maintain an Invention as a trade secret.

 

Section 4.03     In the event that Licensor decides to terminate prosecution of a Licensed Patent Application or discontinue maintaining any Licensed Patent in any country, then the Licensor shall provide the Licensee with prompt written notice of such decision but, in any event, such notice shall be provided to the Licensee at least sixty (60) days before any known bar date or non-extendable deadline. The Licensee, at its option, may then in writing request the Licensor to continue prosecution of any Licensed Patent Application and/or maintain any such Licensed Patent, as applicable, at the sole and exclusive expense of the Licensee. If the Licensor declines in writing to continue any such prosecution or maintenance obligation, the Licensee may provide the Licensor with written notice that the Licensee wishes to assume control of the prosecution of any such Licensed Patent Application and/or to maintain any such Licensed Patent, as applicable, at the sole and exclusive expense of the Licensee. If the Licensee assumes such control or maintenance obligation, the Licensor agrees to cooperate with the Licensee, its attorneys and agents in the prosecution of such Licensed Patent Application and to provide the Licensee with complete copies of any and all documents and other related materials that the Licensee deems necessary to undertake such control or obligation.

 

 

 

 

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Article V.

 

ENFORCEMENT OF LICENSED PATENTS

 

Section 5.01     In the event of any third party infringement of any Licensed Patent, the party hereto having knowledge thereof shall promptly notify the other party of such infringement, whereupon the parties shall consult with a view to reaching an agreement as to the ways and means for eliminating such infringement. If both parties desire to litigate such infringement, they shall equally share any costs thereof and any recovery therein. The Licensor shall promptly advise the Licensee of all costs incurred with respect to any such litigation and provide supporting documentation with respect thereto. The Licensee shall within thirty (30) days of receipt of such documentation pay the Licensor its share of costs. In the event that either party desires to litigate such infringement and the other party refuses or fails to do so, the party desiring litigation may in its sole discretion, and at its sole expense, and by counsel of its own choice, bring suit to restrain such infringement, and shall be entitled to receive and retain, for its own use and benefit, any recovery awarded in such suit, including, without limitation, monetary damages. In the event that the Licensee desires to litigate such infringement and the Licensor refuses or fails to do so, the Licensor, agrees (a) to be joined as a party in such litigation, if so required by law, with all costs of Licensor’s participation in such litigation at the sole and exclusive expense of the Licensee and (b) that the Licensee shall have full control of such litigation.

 

Section 5.02     Unless the Licensor refuses or fails to initiate such litigation, the Licensor shall have primary control of the litigation, including the right to appoint counsel and the right to settle or compromise same with the written consent of the Licensee, which consent shall not be unreasonably withheld. In any event, the parties agree to use reasonable commercial efforts to cooperate with one another in any litigation relating to such third party infringement.

 

Article VI.

 

MARKING AND REGULATORY CLEARANCES

 

Section 6.01     Licensee shall comply with the patent marking provisions of 35 USC § 287(a) by marking an appropriate patent notice on each Licensed Product, or its packaging, labels, containers, displays or any associated printed materials, as appropriate, manufactured by or on behalf of the Licensee. Licensee shall include in all sublicense agreements, and require in any sublicense agreement granted by it or any sublicensee, a patent marking requirement substantially identical to this Section 6.01.

 

Section 6.02     The parties acknowledge and agree that the Licensee shall have the sole right to adopt trademarks of its own choosing with respect to all Licensed Products manufactured and/or sold under this License Agreement and that the Licensee shall own all right, title and interest to such trademarks. The Licensee shall not use any trademark, service mark, trade name, corporate name, or any other identifier of the Licensor, or any Affiliate of the Licensor, in connection with the Licensed Products in any manner without the express written consent of the Licensor.

 

 

 

 

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Section 6.03     Licensee shall, at Licensee’s sole and exclusive expense, comply with all regulations and safety standards concerning Licensed Products developed and commercialized by or under the authority of Licensee, including, without limitation, the regulations and safety standards of the FDA, and obtain all necessary Regulatory Approvals for the development, production, distribution, sale and use of Licensed Products developed and commercialized by or under the authority of Licensee, including any safety or clinical studies. Licensee shall have responsibility for and provide suitable warning labels, packaging and instructions as to the use for such Licensed Products.

 

 

Article VII.

 

BOOKS AND RECORDS

 

Section 7.01     The Licensee agrees to maintain and keep full and accurate books and records regarding all Licensed Products and to retain such books and records for the Term and for a period of five (5) years thereafter in sufficient detail to identify all Licensed Products manufactured or provided by or on behalf of the Licensee and/or shipped, sold, or otherwise transferred or provided by the Licensee. Such books and records shall indicate: (a) invoice numbers, (b) invoice dates, (c) invoice prices, (d) customers, (e) quantity of Licensed Products shipped and sold, (f) shipping costs, regular trade and quantity discounts and taxes and (g) any other information reasonably necessary to audit the accuracy of Royalty Fee payments made hereunder. The Licensee agrees that such books and records shall be maintained in accordance with generally accepted and reasonable accounting principles in the United States.

 

Section 7.02     (a)     The Licensee agrees that a certified public accountant selected by and compensated by the Licensor shall be permitted upon reasonable prior notice to inspect and copy, during Licensee’s normal business hours, said books and records of the Licensee. The Licensee further agrees that, at the Licensor’s expense, said certified public accountant shall have the right upon reasonable prior notice to audit the Licensee’s physical inventory (including component parts, work-in-progress, and finished goods) of Licensed Products.

 

(b)     Licensor shall provide to Licensee a copy of the audit report within fourteen (14) days of Licensor’s receipt of the report. If the report shows that payment of Royalty Fees made by Licensee are deficient, Licensee shall pay Licensor the deficient amount plus interest on the deficient amount within thirty (30) days after Licensee’s receipt of the audit report. If payments made by Licensee are found to be deficient by more than five percent (5%), Licensee shall pay for the full cost of the audit.

 

 

 

 

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Article VIII.

 

ROYALTIES

 

Section 8.01     In consideration of its license from the Licensor under this License Agreement, Licensee shall pay to Licensor a royalty fee (the “Royalty Fee”) in an amount equal to seven percent (7%) of the Net Sales of any Licensed Product (regardless of whether such sales are on-label or off-label) transferred or otherwise disposed of by or for Licensee in the Territory. The Royalty Fee shall be payable by the Licensee to the Licensor for the period beginning on the Effective Date and running until (and inclusive of) the year of the expiration of the Term.

 

Section 8.02     Royalties and other sums payable under this License Agreement are exclusive of taxes. Licensee shall be responsible for all sales, use, excise and value added taxes and any other similar taxes, duties and charges of any kind imposed by any federal, state or local Governmental Body on any amounts payable by Licensee hereunder and shall pay all such royalties and other sums payable hereunder free and clear of all deductions and withholdings whatsoever, unless the deduction or withholding is required by law. If any deduction or withholding is required by law, Licensee shall pay to Licensor such sum as will, after the deduction or withholding has been made, leave Licensor with the same amount as it would have been entitled to receive without any such requirement to make a deduction or withholding.

 

Section 8.03     (a)     Licensee shall pay all Royalty Fees for each Quarterly Period within thirty (30) days after the end of such Quarterly Period. Licensee shall make all payments in United States dollars by wire transfer of immediately available funds to a bank account to be designated in writing by Licensor. For the purpose of converting the local currency in which any Royalty Fee arises into United States dollars, the rate of exchange to be applied shall be the rate of exchange in effect on the last Business Day of the Quarterly Period to which the payment relates as reported in the Wall Street Journal.

 

(b)     On or before the due date for all payments paid to Licensor pursuant to Section 8.03, Licensee shall provide Licensor with a written statement including each of the following:

 

(i)     the total number of Licensed Products (broken out by each Licensed Product, to the extent applicable) sold, transferred or otherwise disposed of by Licensee in the relevant Quarterly Period; 

 

(ii)     the total Net Sales of all Licensed Products (broken out by each Licensed Product, to the extent applicable) sold, transferred or otherwise disposed of by Licensee in the relevant Quarterly Period; 

 

(iii)     the calculation of the Royalty Fee for the relevant Quarterly Period; and

 

(iv)     such other information and particulars as are reasonably necessary for an accurate accounting of the Royalty Fee paid pursuant to this License Agreement.

 

 

 

 

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(c)     If payments are not received by Licensor within thirty (30) days after becoming due, Licensee shall pay to Licensor interest on the overdue payment from the date such payment was due to the date of actual payment at a rate of one and a half percent (1.5%) per month, or if lower, the maximum amount permitted under applicable law.

 

Article IX.

 

TERM AND TERMINATION

 

Section 9.01     This License Agreement and the license hereunder shall be effective as of the Effective Date. This License Agreement shall, unless terminated in accordance with the provisions of this Article IX, be and remain in effect until the expiration of the last to expire Licensed Patent or the last Licensed Patent Application that becomes abandoned, whichever is later (herein referred to as the “Term”).

 

Section 9.02     In the event of any breach by the Licensee of this License Agreement, the Licensor shall deliver written notice thereof to the Licensee. The Licensee shall use all reasonable commercial efforts to cure such breach within forty-five (45) days of notice from the Licensor as aforesaid. If, within such period, the Licensee has not cured such breach, the Licensor shall have the right to terminate this License Agreement upon prior written notice to the Licensee.

 

Section 9.03     The Licensor, shall have the right to immediately terminate this License Agreement, upon prior written notice to the Licensee, if 

 

(a)     the Licensee: (i) becomes insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they become due; (ii) applies for or consents to the appointment of a trustee, receiver or other custodian, or makes a general assignment for the benefit of its creditors; (iii) commences any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceedings (each, hereinafter referred to as a “Bankruptcy Proceeding’); or (iv) has a Bankruptcy Proceeding commenced against it and such Bankruptcy Proceeding is not dismissed within thirty (30) days of the date of commencement thereof;

 

(b)     on or after a date that is two (2) years after the Effective Date, the Licensee or any of its Affiliates is not demonstrably and actively engaged in a research, development, manufacturing, marketing or sales activity for the Licensed Products, as appropriate, or has otherwise abandoned use of the Licensed IP;

 

(c)     the Development Agreement is terminated for any reason, except as a result of a breach by the Licensor of its obligations under the Development Agreement;

 

(d)     the Supply Agreement is terminated by Greatbatch or any Greatbatch Affiliate, as applicable, as a result of a breach by the Licensee of its obligations under the Supply Agreement;

 

 

 

 

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(e)     Licensee, directly or indirectly through one or more of its Affiliates, challenges the validity of, takes material and documented steps to support any proceeding with intended effect of invalidating, or otherwise attempts to limit the scope of any Licensed Patent, Licensed Patent Application or any other patent owned or licensed by Licensor or its Affiliates, in each case whether through post grant review, inter partes review, ex parte reexamination or other method;

 

(f)     the Licensor is advised in writing by its outside legal counsel that it is not advisable for Licensee to continue with the commercialization of the Licensed Product as a result of an actual, threatened or perceived material safety, legal or economic risk regarding such Licensed Product as the result of any law, decree, resolution, liabilities resulting from a claim against any Person, or any decision of a Governmental Body or the FDA or change in the interpretation of any current law, decree, resolution or decision by a Governmental Body;

 

(g)     there is a Change of Control of Licensee and, in connection with such Change of Control, Licensor does not believe in its reasonable judgment that Licensee’s successor in such Change of Control is able to perform Licensee’s obligations under this Agreement; or

 

(h)     any of the milestones listed on Exhibit C hereto fails to be reached.

 

 

Section 9.04     Immediately upon termination pursuant to this Article IX, the Licensee shall cease and desist from making, having made, using, importing, distributing, selling and/or offering to sell the Licensed Products. After early termination of this License Agreement, the Licensor shall be free to grant to others exclusive rights under any or all of the Licensed IP. Termination of this License Agreement for any reason, or the expiration of this License Agreement, shall not relieve either party from performing obligations incurred prior to such termination or expiration.

 

Section 9.05     Neither party shall be in default hereunder by reason of any failure or delay in the performance of its obligations hereunder, except for Licensee’s payment obligations, where such failure or delay is due to any cause beyond its reasonable control, including strikes, labor disputes, civil disturbances, riot, rebellion, invasion, epidemic, hostilities, war, terrorist attack, embargo, natural disaster, acts of God, flood, fire, sabotage, loss and destruction of property or any other circumstances or causes beyond such party’s reasonable control.

 

Section 9.06     The provisions of Articles I and Articles VII through and including XIV shall survive termination or expiration of this License Agreement.

 

Article X.

 

REPRESENTATIONS AND WARRANTIES BY LICENSOR

 

Section 10.01     The Licensor, to its knowledge, represents, warrants and covenants that:

 

(a)     The Licensor is a corporation duly incorporated, validly existing, and in good standing under the law of the State of Delaware, and has full corporate power to conduct the business in which it is presently engaged and to enter into and perform its obligations under this License Agreement.

 

 

 

 

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(b)     The Licensor has taken all necessary corporate action under the laws of the State of Delaware and its certificate of incorporation and by-laws to authorize the execution and consummation of this License Agreement and, when executed and delivered, this License Agreement shall constitute a valid and legally binding agreement of the Licensor enforceable against the Licensor in accordance with the terms hereof, except as may be limited by bankruptcy, insolvency or other laws affecting generally the enforceability of creditors’ rights and by limitations on the availability of equitable remedies.

 

(c)     Neither the execution and delivery of this License Agreement nor the consummation of the transactions contemplated herein will violate any law, rule, regulation, writ, judgment, injunction, decree, determination, award or other order of any court, government or governmental agency or instrumentality, domestic or foreign, binding upon the Licensor, or conflict with or result in any breach of or event of termination under any of the terms of, or constitute a default under or result in the termination of or the creation or imposition of any mortgage, deed of trust, pledge, lien, security interest or other charge or encumbrance of any nature pursuant to, the terms of any contract or agreement to which the Licensor is a party or by which the Licensor or any of its assets and properties are bound.

 

Section 10.02     THE LICENSEE ACKNOWLEDGES THAT THE LICENSED PATENTS, THE LICENSED PATENT APPLICATIONS AND THE TECHNICAL KNOW-HOW ARE BEING LICENSED “AS-IS,” WITH NO WARRANTIES WHATSOEVER. WITHOUT LIMITING ANY PROVISION CONTAINED IN THIS LICENSE AGREEMENT, THE LICENSOR HEREBY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES, INCLUDING THOSE OF NON-INFRINGEMENT, VALIDITY, TITLE, FITNESS FOR A PARTICULAR PURPOSE AND MERCHANTABILITY.

 

Article XI.

 

REPRESENTATIONS AND WARRANTIES BY LICENSEE

 

 

Section 11.01     The Licensee, to its knowledge, represents, warrants and covenants that:

 

(a)     The Licensee is a Swiss share company registered under the federal identification number CHE-114.416.910 and is duly organized, validly existing, and in good standing under the law of Switzerland, and has full right and authority to conduct the business in which it is presently engaged and to enter into and perform its obligations under this License Agreement.

 

(b)     The Licensee has taken all necessary action under the laws of Switzerland and its articles of association to authorize the execution and consummation of this License Agreement and, when executed and delivered, this License Agreement shall constitute the valid and legally binding agreement of the Licensee enforceable against the Licensee in accordance with the terms hereof, except as may be limited by bankruptcy, insolvency or other laws affecting generally the enforceability of equitable remedies.

 

 

 

 

 - 14 -

 

 

(c)     Neither the execution and delivery of this License Agreement nor the consummation of the transactions contemplated herein will violate any law, rule, regulation, writ, judgment, injunction, decree, determination, award or other order of any court, government or governmental agency or instrumentality, domestic or foreign, binding upon the Licensee, or conflict with or result in any breach of or event of termination under any of the terms of, or constitute a default under or result in the termination of or the creation or imposition of any mortgage, deed of trust, pledge, lien, security interest or other charge or encumbrance of any nature pursuant to, the terms of any contract or agreement to which the Licensee is a party or by which the Licensee or any of its assets and properties are bound.

 

Article XII.

 

INDEMNIFICATION & INSURANCE

 

Section 12.01     The Licensee shall indemnify and hold harmless the Licensor and its Affiliates, and their respective directors, officers, members, managers, employees, agents, representatives, successors and assigns (herein referred to, collectively, as the “Indemnified Parties”), and each of them, from and against all damages, costs, expenses, interest (including prejudgment interest), losses, claims, demands, liabilities, deficiencies and/or obligations, including, without limitation, reasonable fees and disbursements of counsel (herein referred to, collectively, as “Damages”), which the Indemnified Parties, or any of them, may incur resulting, directly or indirectly, wholly or partly by reason of: (a) the breach of any representation, warranty, covenant, agreement or obligation to have been performed hereunder by the Licensee, or any of its Affiliates; or (b) the Licensee’s, any of its sublicensee’s, or any of its Affiliate’s use of the Licensed IP or sale of any Licensed Products after the Effective Date.

 

Section 12.02     If the facts that give rise to any indemnification hereunder shall involve any actual or threatened claim or demand (herein referred to as a “Third-Party Claim”) by any Person (including, without limitation any tax authority or other Governmental Body) other than a party hereto, its Affiliates, or their respective successors or assigns, notice thereof shall be given by the Indemnified Party to the Licensee no later than ten (10) days after the Indemnified Party shall have received written notice thereof from the third party making such Third Party Claim; provided, however, that if the Third-Party Claim is in the form of a pleading requiring an answer, such notice shall be given at least seven (7) Business Days prior to the due date of the answer or other response to the pleading; provided, further, however, that failure to give such notice shall not affect the indemnification provided hereunder. Thereafter, the Indemnified Parties shall deliver to the Licensee copies of all notices and documents (including court papers) received by the Indemnified Party relating to the Third-Party Claim.

 

Section 12.03     The Licensee shall have thirty (30) days from receipt of the notice provided by the Indemnified Party pursuant to Section 12.02 immediately preceding to provide the Indemnified Party with notice that it wishes to assume the defense of the Third-Party Claim, in which event the Indemnified Party shall have the right to participate in the defense at its own expense, including, without limitation, the right at its expense to employ counsel separate from counsel employed by the Licensee, except that such counsel shall be at the expense of the Licensee if (a) the Indemnified Parties are required to retain separate counsel due to a conflict of interest with the Licensee, or (b) the Licensee fails to act diligently in defending such action. In no event shall the Licensee be responsible for the fees and expenses of more than one firm of lead counsel and, to the extent required, one local counsel, representing all Indemnified Parties. 

 

 

 

 

 - 15 -

 

 

Section 12.04     If the Licensee chooses to defend a Third-Party Claim, the Indemnified Parties shall cooperate in the defense thereof. Such cooperation shall include the retention and the provision to the Licensee assuming the defense of records and information which are reasonably relevant to such Third-Party Claim and making relevant employees or agents reasonably available during normal business hours on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. If the Licensee assumes the defense of a Third-Party Claim, each Indemnified Party shall agree to any settlement, compromise or discharge of such Third-Party Claim that the Licensee assuming the defense may recommend and that by its terms obligates the Licensee (a) to pay the full amount of the liability in connection with such Third-Party Claim; (b) releases the Indemnified Party completely in connection with such Third-Party Claim; and (c) would not otherwise adversely affect the Indemnified Party. 

 

Section 12.05     In the event any Indemnified Party should have a claim against the Licensee under this Article XII that does not involve a Third-Party Claim, the Indemnified Party shall deliver notice of such claim with reasonable promptness to the Licensee, together with its request forthwith for payment subject to the provisions of this License Agreement; provided, however, that, the failure by any Indemnified Party so to notify the Licensee shall not relieve the Licensee from any liability that it may have to such Indemnified Party under this Article XII except to the extent that the Licensee demonstrates that it has been materially prejudiced by such failure. 

 

Section 12.06     Licensee shall, at all times during the Term and for five (5) years thereafter, obtain and maintain at its own expense the following types of insurance, with limits of liability not less than those specified below:

 

(a)     Commercial general liability insurance against claims for bodily injury and property damage which shall include contractual coverage and product liability coverage, with limits of not less than $10,000,000 per occurrence and $20,000,000 in the aggregate; provided, that Licensee’s obligation to obtain and maintain the insurance coverage described under this Section 12.06(a) shall not commence until sixty (60) days prior to the commencement of (i) a human clinical study for any Licensed Product, or (ii) the sale or transfer of any Licensed Product, whichever occurs first; provided, further, that Licensee shall deliver to Licensor certificates of insurance evidencing the insurance coverage described in this Section 12.06(a) at least sixty (60) days prior to the commencement of a human clinical study for any Licensed Product and the sale or transfer of any Licensed Product, and upon reasonable request thereafter. The Licensor shall be named as an additional insured; and

 

(b)     Workers compensation and employers’ liability with limits to comply with the statutory requirements of the state(s) in which the License Agreement is to be performed. The policy shall include employers’ liability for not less than $5,000,000 per accident.

 

 

 

 

 - 16 -

 

 

Licensee shall deliver certificates of insurance evidencing coverage to Licensor promptly after the execution of this License Agreement and upon reasonable request thereafter. All policies provided for herein shall expressly provide that such policies shall not be cancelled, terminated or altered without at least thirty (30) days prior written notice to the Licensee, and Licensee shall immediately notify the Licensor in the event that a policy provided for herein is cancelled, terminated or altered.

 

Article XIII.

 

CONFIDENTIALITY

 

Section 13.01     Confidential Information provided by the disclosing party and entitled to protection under this License Agreement shall be identified as such by an appropriate marking of “Confidential Information” on any document exchanged. If the disclosing party provides information other than in written form, such information shall be considered Confidential Information only if (a) the information by its nature would reasonably be considered of a confidential nature or if the receiving party, due to the context in which the information was disclosed, should have reasonably known it to be confidential, and (b) either the disclosing party gives written notice within thirty (30) days of disclosure that such information is to remain confidential or the disclosing party had previously confirmed in writing that such information was confidential.

 

Section 13.02     Each party acknowledges that the other party claims its trade secrets and other Confidential Information as special, valuable and unique assets. During the Restricted Period for itself and on behalf of its officers, directors, agents, and employees, each party agrees to the following:

 

(a)     The receiving party will use the Confidential Information only for the purposes of exercising its rights or fulfilling its obligations under this License Agreement and will not otherwise use it for its own benefit. In no event shall the receiving party use less than the same degree of care to protect the Confidential Information as it would employ with respect to its own information of like importance which it does not desire to have published or disseminated.

 

(b)     The receiving party will not disclose any Confidential Information to any third party or disclose to an employee unless:

 

(i)     such disclosure is reasonably necessary (A) for the filing or prosecuting of Licensed Patents as contemplated by this License Agreement; (B) to comply with the requirement of a Governmental Body with respect to obtaining and maintaining Regulatory Approvals (or any pricing and reimbursement approvals) of any Licensed Product; or (C) for prosecuting or defending litigations as contemplated by this License Agreement;

 

(ii)     such disclosure is reasonably necessary to its members, officers, directors, managers, employees, agents, consultants or contractors on a need-to-know basis for the sole purpose of performing its obligations or exercising its rights under this License Agreement; provided that in each case, the disclosees must be bound by written obligations of confidentiality and non-use consistent with those contained in this License Agreement;

 

 

 

 

 - 17 -

 

 

(iii)     such disclosure is reasonably necessary to any bona fide potential or actual investor, acquiror, merger partner, or other financial or commercial partner for the sole purpose of evaluating an actual or potential investment, acquisition or other business relationship; provided that in each case, the disclosees must be bound by written obligations of confidentiality and non-use consistent with those contained in this License Agreement; or

 

(iv)     such disclosure is reasonably necessary to comply with applicable law, including regulations promulgated by applicable security exchanges, a valid order of a court of competent jurisdiction, administrative subpoena or order; provided, however, if the receiving party is subject to a valid order of a court of competent jurisdiction, administrative subpoena or order requiring disclosure of Confidential Information, then, prior to disclosing any such Confidential Information, the receiving party shall promptly notify the disclosing party in writing and, upon the disclosing party’s request, shall cooperate with the disclosing party in contesting such request or in obtaining a protective order or other similar injunctive relief.

 

(c)     The parties acknowledge that either or both parties may be obligated to file a copy of this License Agreement with the United States Securities and Exchange Commission or similar stock exchange authorities or other governmental authorities. Each party shall be entitled to make such a required filing; provided, however, that it requests confidential treatment of the commercial terms and sensitive technical terms hereof and thereof to the extent such confidential treatment is reasonably available to such party. In the event of any such filing, each party shall provide the other party with a copy of this License Agreement marked to show provisions for which such party intends to seek confidential treatment and shall reasonably consider and incorporate the other party’s comments thereon to the extent consistent with the legal requirements, with respect to the filing party, governing disclosure of material agreements and material information that must be publicly filed.

 

(d)     For purposes hereof, the term “Restricted Period” means (a) in the case of any Confidential Information that is designated as trade secrets of a disclosing party (which designation can be made at any reasonable time by the disclosing party), in perpetuity; and (b) in the case of other Confidential Information of a disclosing party, during the Term and for a period of ten (10) years thereafter.

 

Section 13.03     All information furnished under this License Agreement shall remain the property of the disclosing party and shall be returned to it or destroyed or purged promptly as requested by the disclosing party upon termination of this License Agreement. All documents, memoranda, notes and other tangible embodiments whatsoever prepared by the receiving party based on or which includes Confidential Information shall be destroyed to the extent necessary to remove all such Confidential Information upon the disclosing party’s request. An authorized officer of the receiving party shall, upon request, certify all destruction under this Section 13.03 in writing to the disclosing party.

 

 

 

 

 - 18 -

 

 

Section 13.04     The confidentiality obligations in this Article XIII shall not apply to disclosed information which the receiving party can prove: (a) that the receiving party knew at the time of disclosure, free of any obligation to keep it confidential, as evidenced by written records; (b) that is or becomes generally publicly known through disclosure without breach of confidentiality obligations by the receiving party, (c) that the receiving party independently developed without the use of any Confidential Information as evidenced by written records; or (d) receiving party rightfully obtains from a third party who has the right to transfer or disclose it. 

Section 13.05     Notwithstanding anything to the contrary contained in this License Agreement, neither party may initiate or make any public announcement or other disclosure concerning the terms and conditions or the subject matter of this License Agreement to any third party without the prior written approval of the other party except as may be required by law. In those circumstances where either party believes that any such disclosure is required by law, it shall (a) notify the other party on a timely basis in advance and (b) use its best efforts to seek confidential treatment of the material provisions of this License Agreement to the greatest extent permitted by applicable law.

 

Article XIV.

 

MISCELLANEOUS

 

Section 14.01     Licensee shall not assign or otherwise transfer any of its rights, or delegate or otherwise transfer any of its obligations or performance, under this License Agreement, in each case whether voluntarily, involuntarily, by operation of law or otherwise, without Licensor’s prior written consent, which consent Licensor may give or withhold in its sole discretion. No delegation or other transfer will relieve Licensee of any of its obligations or performance under this License Agreement. Any purported assignment, delegation or transfer in violation of Section 14.01 is void. Notwithstanding anything in this Section 14.01 to the contrary, Licensee shall assign this Agreement to Licensee’s successor in the Change of Control of Licensee; provided, that such successor, in the reasonable judgment of Licensor, is able to perform Licensee’s obligations under this Agreement. Licensor may freely assign or otherwise transfer all or any of its rights, or delegate or otherwise transfer all or any of its obligations or performance, under this License Agreement without Licensee's consent. This License Agreement is binding upon and inures to the benefit of the parties hereto and their respective permitted successors and assigns.

 

Section 14.02     Unless otherwise provided in this License Agreement, any notice to be given hereunder shall be in writing and (a) delivered personally (to be effective when so delivered), (b) mailed by registered or certified mail, return receipt requested (to be effective four days after the date it is mailed) or (c) sent by Federal Express or other overnight courier service (to be effective when received by the addressee), to the following addresses (or to such other addresses which any party shall designate in writing to the other parties):

 

If to Licensor:

 

Nuvectra Corporation

5700 Granite Parkway

Suite 960

Plano, Texas 75024

Attn: General Counsel

 

 

 

 

 - 19 -

 

 

If to Licensee:

 

Aleva Neurotherapeutics SA

EPFL Innovation Park, Building D 

1015 Lausanne, Switzerland

Attn: Chief Executive Officer 

 

Section 14.03     This License Agreement and all exhibits attached hereto contain the entire agreement between the parties hereto with respect to the transactions contemplated hereby, and supersede all prior understandings, arrangements and agreements, written or oral, with respect to the subject matter hereof. No modification or amendments to this License Agreement shall be effective unless in writing and signed by the party against which it is sought to be enforced.

 

Section 14.04     Each of the parties hereto shall bear such party’s own expenses in connection with this License Agreement and the transactions contemplated hereby, except as may otherwise expressly be set forth herein. It is expressly understood that the parties are independent of one another and that neither has the authority to bind the other to any third person or otherwise to act in any way as the representative of the other, unless otherwise expressly agreed to in writing signed by both parties hereto.

 

Section 14.05     Each of the parties hereto shall use such party’s commercially reasonable efforts to take such actions as may be necessary or reasonably requested by the other party hereto to carry out and consummate the transactions contemplated by this License Agreement.

 

Section 14.06     This License Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws provisions thereof to the extent such principles or rules would require or permit the application of the laws of any jurisdiction other than those of the State of New York.

 

Section 14.07     The captions appearing herein are for the convenience of the parties only and shall not be construed to affect the meaning of the provisions of this License Agreement. All references in this License Agreement to Sections, Articles and Exhibits refer to the Sections, Articles and Exhibits of this License Agreement and exhibits attached hereto is hereby incorporated in and made a part of this License Agreement. 

 

Section 14.08     Each party acknowledges and agrees that any controversy which may arise under this License Agreement is likely to involve complicated and difficult issues, and therefore each such party hereby irrevocably and unconditionally waives any right such Party may have to a trial by jury in respect of any litigation directly or indirectly arising out of or relating to this License Agreement, or the transactions contemplated by this License Agreement. Each Party certifies and acknowledges that (i) no representative, agent or attorney of any other Party has represented, expressly or otherwise, that such other Party would not, in the event of litigation, seek to enforce the foregoing waiver, (ii) each party makes this waiver voluntarily, and (iII) each Party has been induced to enter into this License Agreement by, among other things, the mutual waivers and certifications in this SECTION 14.08.

 

 

 

 

 - 20 -

 

 

Section 14.09     The parties agree that irreparable damage would occur in the event that any of the provisions of this License Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that, except where this License Agreement is terminated in accordance with Article IX, the parties shall be entitled to an injunction or injunctions to prevent breaches or threatened breaches of this License Agreement and to specifically enforce the terms and provisions of this License Agreement and any other agreement or instrument executed in connection herewith. Each party waives any requirements for the securing or posting of any bond in connection with any such remedy. The parties further agree that (i) by seeking the remedies provided for in this Section 14.09, a party shall not in any respect waive its right to seek any other form of relief that may be available to a party and not otherwise specifically waived under this License Agreement, including monetary damages in the event that this License Agreement has been terminated or in the event that the remedies provided for in this Section 14.09 are not available or otherwise are not granted and (ii) nothing contained in this Section 14.09 shall require any party to institute any proceeding for (or limit any party’s right to institute any proceeding for) specific performance under this Section 14.09 before exercising any termination right under Article IX (and pursing damages after such termination) nor shall the commencement of any action pursuant to this Section 14.09 or anything contained in this Section 14.09 restrict or limit any party’s right to terminate this License Agreement in accordance with the terms of Article IX or pursue any other remedies under this License Agreement that may be available then or thereafter.

 

Section 14.10     Each of the parties hereto (i) irrevocably consents to the service of the summons and complaint and any other process in any action or proceeding contemplated by Section 14.09 or otherwise in any way relating to this License Agreement, on behalf of itself and/or officers, in accordance with the notice provision set forth in Section 14.02 or in such other manner as may be permitted by law, of copies of such process to such party, and nothing in this Section 14.10 shall affect the right of any party to serve legal process in any other manner permitted by law, (ii) irrevocably and unconditionally consents and submits itself and its property in any action or proceeding to the exclusive general jurisdiction of any state or federal court within the State of New York in the event any dispute arises out of this License Agreement or the transactions contemplated by this License Agreement, or for recognition and enforcement of any judgment in respect thereof, (iii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other similar relief from any such court, (iv) agrees that any actions or proceedings arising in connection with this License Agreement or the transactions contemplated by this License Agreement shall be brought, tried and determined only in a state or federal court within the State of New York, (v) waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same and (vi) agrees that it will not bring any action relating to this License Agreement or the license or other matters covered by this License Agreement in any court other than the aforesaid courts. Each of the parties agrees that a final judgment in any action or proceeding in such court as provided above shall be conclusive and may be enforced in other jurisdictions by suits on the judgment or in any other manner provided by law. 

 

 

 

 

 - 21 -

 

 

Section 14.11     This License Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

Section 14.12     Any term or provision of this License Agreement that is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this License Agreement, or any such terms in any other jurisdiction. If any provision of this License Agreement is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable.

 

Section 14.13     Nothing in this License Agreement, express or implied, is intended to confer on any Person other than the parties hereto, and their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this License Agreement; provided; however, the parties hereby designate Greatbatch as a third-party beneficiary of this License Agreement with the right to enforce this License Agreement.

 

Section 14.14     No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this License Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

Section 14.15     This License Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. A signed copy of this License Agreement delivered by facsimile, e-mail or other means of electronic transmission (to which a PDF copy is attached) shall be deemed to have the same legal effect as delivery of an original signed copy of this License Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 

  - 22 -

 

 

IN WITNESS WHEREOF, the parties have caused this License Agreement to be properly executed and delivered as of the Effective Date.

 

	
 
	
NUVECTRA CORPORATION
	
 

	 	 	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By
	
                 /s/ Walter Z. Berger
	
 

	
 
	
Name: 
	
Walter Z. Berger
	
 

	
 
	
Title:
	
CFO
	
 

 

	
 
	
ALEVA NEUROTHERAPEUTICS SA
	
 

	
 
	
 
	
 
	
 

	 	 	 	 
	
 
	
 
	
 
	
 

	
 
	
By
	
                /s/ Andre Mercanzini
	
 

	
 
	
Name: 
	
Andre Mercanzini
	
 

	
 
	
Title: 
	
CTO
	
 

 

 

 

 

 

 

EXHIBIT A

 

LIcensed IP

 

Patents and Patent Applications Licensed to Aleva (As of October 2015)

 

	  	
United States Issued Patents and Pending Applications
	  
	  	
Patent No.
	
Application No.
	
Title
	
Country

	
1
	
US 8, 954,148
	
13/170,558
	
KEY FOB CONTROLLER FOR AN IMPLANTABLE NEUROSTIMULATOR
	
United States

	
2
	
US 8,483,836
	
13/226,969
	
AUTOMATED SEARCH TO IDENTIFY A LOCATION FOR ELECTRICAL STIMULATION TO TREAT A PATIENT
	
United States

	
3
	
US 8,515,545
	
13/098,071
	
CURRENT STEERING NEUROSTIMULATOR DEVICE WITH UNIDIRECTIONAL CURRENT SOURCES
	
United States

	
4
	
US 8,571,667
	
13/175,283
	
ACTIVE CURRENT CONTROL USING THE ENCLOSURE OF AN IMPLANTED PULSE GENERATOR
	
United States

	
5
	
US 8,738,153
	
14/019,653
	
IMPLANTABLE LEAD WITH BRAIDED CONDUCTORS
	
United States

	
6
	
US 8,757,485
	
13/604,285
	
SYSTEM AND METHOD FOR USING CLINICIAN PROGRAMMER AND CLINICIAN PROGRAMMING DATA FOR INVENTORY AND MANUFACTURING PREDICTION AND CONTROL
	
United States

	
7
	
US 8,761,892
	
14/038,833
	
ACTIVE CURRENT CONTROL USING THE ENCLOSURE OF AN IMPLANTED PULSE GENERATOR
	
United States

	
8
	
US 8,761,897
	
14/015,032
	
METHOD AND SYSTEM OF GRAPHICAL REPRESENTATION OF LEAD CONNECTOR BLOCK AND IMPLANTABLE PULSE GENERATORS ON A CLINICIAN PROGRAMMER
	
United States

	
9
	
US 8,781,592
	
13/226,897
	
IDENTIFYING AN AREA FOR ELECTRICAL STIMULATION TO TREAT A PATIENT (see Claim 9)
	
United States

	
10
	
US 8,812,125
	
13/600,684
	
SYSTEMS AND METHODS FOR THE IDENTIFICATION AND ASSOCIATION OF MEDICAL DEVICES
	
United States

	
11
	
US 8,868,199
	
13/973,363
	
SYSTEM AND METHOD OF COMPRESSING MEDICAL MAPS FOR PULSE GENERATOR OR DATABASE STORAGE
	
United States

 

 

 

 

 

	
12
	
US 8,874,219
	
13/081,936
	
ARBITRARY WAVEFORM GENERATOR AND NEURAL STIMULATION APPLICATION
	
United States

	
13
	
US 8,903,496
	
13/600,875
	
CLINICIAN PROGRAMMING SYSTEM AND METHOD
	
United States

	
14
	
US 8,983,616
	
13/604,197
	
METHOD AND SYSTEM FOR ASSOCIATING PATIENT RECORDS WITH PULSE GENERATORS
	
United States

	
15
	
US 8,996,115
	
13/081,896
	
CHARGE BALANCING FOR ARBITRARY WAVEFORM GENERATOR AND NEURAL STIMULATION APPLICATION
	
United States

	
16
	
US 8,996,117
	
13/082,097
	
ARBITRARY WAVEFORM GENERATOR AND NEURAL STIMULATION APPLICATION WITH SCALABLE WAVEFORM FEATURE
	
United States

	
17
	
US 8,700,175
	
13/185,636
	
DEVICES AND METHODS FOR VISUALLY INDICATING THE ALIGNMENT OF A TRANSCUTANEOUS ENERGY TRANSFER DEVICE OVER AN IMPLANTED MEDICAL DEVICE
	
United States

	
18
	
US 9,002,466
	
13/442,283
	
DIVERSITY ANTENNAS FOR NEUROSTIMULATOR PROGRAMMING DEVICES
	
United States

	
19
	
US 9,031,664
	
13/943,869
	
CURRENT STEERING NEUROSTIMULATOR DEVICE WITH UNIDIRECTIONAL CURRENT SOURCES
	
United States

	
20
	
US 9,031,666
	
14/249,425
	
DEVICES AND METHODS FOR VISUALLY INDICATING THE ALIGNMENT OF A TRANSCUTANEOUS ENERGY TRANSFER DEVICE OVER AN IMPLANTED MEDICAL DEVICE
	
United States

	
21
	
US 9,067,074
	
13/937,463
	
AUTOMATED SEARCH TO IDENTIFY A LOCATION FOR ELECTRICAL STIMULATION TO TREAT A PATIENT
	
United States

	
22
	
US 9,072,903
	
13/118,775
	
SYSTEM AND METHOD OF ESTABLISHING A PROTOCOL FOR PROVIDING ELECTRICAL STIMULATION WITH A STIMULATION SYSTEM TO TREAT A PATIENT
	
United States

	
23
	
US 9,098,610
	
13/334,361
	
COMMUNICATION FOR IMPLANTABLE MEDICAL DEVICES
	
United States

	
24
	
US 9,101,767
	
13/110,466
	
MEASURING LOAD IMPEDANCE WITH ACTIVE STIMULATION PULSES IN AN IMPLANTED PULSE GENERATOR
	
United States

 

 

 

 

 

	
25
	
US 9,126,043
	
13/118,781
	
PATIENT HANDHELD DEVICE FOR USE WITH A SPINAL CORD STIMULATION SYSTEM
	
United States

	
26
	
US D663,035
	
29/403,072
	
TWO-PORT IMPLANTABLE MEDICAL DEVICE
	
United States

	
27
	
US D665,086
	
29/403,078
	
THREE-PORT IMPLANTABLE MEDICAL DEVICE
	
United States

	
28
	
US D665,087
	
29/403,085
	
MULTI-PORT IMPLANTABLE MEDICAL DEVICE
	
United States

	
29
	
US D671,900
	
29/408,300
	
POCKET CONTROLLER FOR IMPLANTABLE NEUROSTIMULATOR
	
United States

	
30
	
US D698,779
	
29/423,109
	
CLINICIAN PROGRAMMER FOR IMPLANTABLE NEUROSTIMULATOR
	
United States

	
31
	
NOA
	
13/118,764
	
SYSTEM AND METHOD OF ESTABLISHING A PROTOCOL FOR PROVIDING ELECTRICAL STIMULATION WITH A STIMULATION SYSTEM TO TREAT A PATIENT
	
United States

	
32
	
NOA
	
14/715,915
	
COMMUNICATION FOR IMPLANTABLE MEDICAL DEVICES
	
United States

	
33
	
NOA
	
14/011,156
	
TOUCH SCREEN FINGER POSITION INDICATOR FOR A SPINAL CORD STIMULATION PROGRAMMING DEVICE
	
United States

	
34
	
NOA
	
13/606,868
	
METHOD OF IMPROVING BATTERY RECHARGE EFFICIENCY BY STATISTICAL ANALYSIS
	
United States

	
35
	
NOA
	
13/606,921
	
METHOD OF MINIMIZING INTERRUPTIONS TO IMPLANTABLE MEDICAL DEVICE RECHARGING
	
United States

	
36
	
Pending
	
13/170,775
	
DUAL PATIENT CONTROLLERS
	
United States

	
37
	
Pending
	
13/226,956
	
CONFIGURING ELECTRICAL STIMULATION TO TREAT A PATIENT
	
United States

	
38
	
Pending
	
13/250,283
	
MEDICAL IMPLANT RANGE EXTENSION BRIDGE APPARATUS AND METHOD
	
United States

	
39
	
Pending
	
13/359,739
	
HEAT DISPERSION FOR IMPLANTABLE MEDICAL DEVICES
	
United States

	
40
	
Pending
	
13/366,705
	
METHOD OF PAIRING MULTIPLE PATIENT CONTROL DEVICES WITH A PATIENT MEDICAL DEVICE
	
United States

	
41
	
Pending
	
13/600,943
	
COGNITION AND USABILITY APTITUDE EVALUATIONS FOR CLINICIAN PROGRAMMERS
	
United States

 

 

 

 

 

	
42
	
Pending
	
13/601,449
	
VIRTUAL REALITY REPRESENTATION OF MEDICAL DEVICES
	
United States

	
43
	
Pending
	
13/601,504
	
TOUCH SCREEN SAFETY CONTROLS FOR CLINICIAN PROGRAMMER
	
United States

	
44
	
Pending
	
13/601,631
	
PROGRAMMING AND VIRTUAL REALITY REPRESENTATION OF STIMULATION PARAMETER GROUPS
	
United States

	
45
	
Pending
	
13/607,037
	
IMPLANT CURRENT CONTROLLED BATTERY CHARGING BASED ON TEMPERATURE
	
United States

	
46
	
Pending
	
13/800,729
	
DUAL PATIENT CONTROLLERS
	
United States

	
47
	
Pending
	
13/828,102
	
ARBITRARY WAVEFORM GENERATOR & NEURAL STIMULATION APPLICATION WITH SCALABLE WAVEFORM FEATURE AND CHARGE BALANCING
	
United States

	
48
	
Pending
	
13/973,292
	
METHOD AND SYSTEM OF BRACKETING STIUMULATION PARAMETERS ON CLINICIAN PROGRAMMERS
	
United States

	
49
	
Pending
	
13/973,316
	
METHOD AND SYSTEM OF QUICK NEUROSTIMULATION ELECTRODE CONFIGURATION AND POSITIONING
	
United States

	
50
	
Pending
	
14/010,872
	
METHOD AND SYSTEM OF MODEL SHADING AND REDUCTION OF VERTICES FOR 3D IMAGING ON A CLINICIAN PROGRAMMER
	
United States

	
51
	
Pending
	
14/010,913
	
METHOD AND SYSTEM OF EMULATING A PATIENT PROGRAMMER
	
United States

	
52
	
Pending
	
14/010,942
	
PREDEFINED INPUT FOR CLINICIAN PROGRAMMER DATA ENTRY
	
United States

	
53
	
Pending
	
14/015,107
	
METHOD AND SYSTEM OF SIMULATING A PULSE GENERATOR ON A CLINICIAN PROGRAMMER
	
United States

	
54
	
Pending
	
14/041,082
	
DIGITAL CONTROL FOR IMPLANTED PULSE GENERATORS
	
United States

	
55
	
Pending
	
14/229,458
	
SYSTEM AND METHOD OF DEVELOPING A PROGRAM FOR PROVIDING THERAPEUTIC ELECTRICAL STIMULATION FOR TREATING A PATIENT
	
United States

	
56
	
Pending
	
14/245,225
	
SYSTEMS, DEVICES, COMPONENTS AND METHODS FOR COMMUNICATING WITH AN IMD USING A PORTABLE ELECTRONIC DEVICE AND A MOBILE COMPUTING DEVICE
	
United States

 

 

 

 

 

	
57
	
Pending
	
14/279,415
	
SYSTEM AND METHOD OF PROVIDING COMPUTER ASSISTED STIMULATION PROGRAMMING (CASP)
	
United States

	
58
	
Pending
	
14/279,749
	
SYSTEM AND METHOD OF DISPLAYING STIMULATION MAP AND PAIN MAP OVERLAP COVERAGE REPRESENTATION
	
United States

	
59
	
Pending
	
14/279,841
	
AUTOMATIC CURRENT BALANCING WITH LOCK CONTROL FOR A CLINICIAN PROGRAMMER
	
United States

	
60
	
Pending
	
14/279,881
	
METHOD AND APPARATUS FOR VISUALIZING A MIGRATION HISTORY OF PAIN MAPS AND STIMULATION MAPS
	
United States

	
67
	
Pending
	
14/279,925
	
METHOD AND APPARATUS FOR DISPLAYING A GRAPHICAL IMPEDANCE HISTORY FOR OUTPUT CHANNELS OF A LEAD
	
United States

	
68
	
Pending
	
14/446,996
	
ARBITRARY WAVEFORM GENERATOR & NEURAL STIMULATION APPLICATION
	
United States

	
69
	
Pending
	
14/552,880
	
CLINICIAN PROGRAMMING SYSTEM AND METHOD
	
United States

	
70
	
Pending
	
14/628,318
	
ARBITRARY WAVEFORM GENERATOR & NEURAL STIMULATION APPLICATION WITH SCALABLE WAVEFORM FEATURE
	
United States

	
71
	
Pending
	
14/670,539
	
DIVERSITY ANTENNAS FOR NEUROSTIMULATOR PROGRAMMING DEVICES
	
United States

	
72
	
Pending
	
14/703,961
	
DEVICES AND METHODS FOR VISUALLY INDICATING THE ALIGNMENT OF A TRANSCUTANEOUS ENERGY TRANSFER DEVICE OVER AN IMPLANTED MEDICAL DEVICE
	
United States

	
73
	
Pending
	
14/793,780
	
MEASURING LOAD IMPEDANCE WITH ACTIVE STIMULATION PULSES IN AN IMPLANTED PULSE GENERATOR
	
United States

	
74
	
Pending
	
14/810,758
	
PATIENT HANDHELD DEVICE FOR USE WITH A SPINAL CORD STIMULATION SYSTEM
	
United States

 

 

 

 

 

 

	  	
Foreign issued patents and pending applications

	  	
Patent No.
	
Application No.
	
Title
	
Country

	
75
	
DE602012008738
	
EP12163520.5
	
ARBITRARY WAVEFORM GENERATOR & NEURAL STIMULATION APPLICATION WITH SCALABLE WAVEFORM FEATURE
	
Germany

	
76
	
EP2508226 FR
	
EP12163520.5
	
ARBITRARY WAVEFORM GENERATOR & NEURAL STIMULATION APPLICATION WITH SCALABLE WAVEFORM FEATURE
	
France

	
77
	
EP2508226 UK
	
EP12163520.5
	
ARBITRARY WAVEFORM GENERATOR & NEURAL STIMULATION APPLICATION WITH SCALABLE WAVEFORM FEATURE
	
United Kingdom

	
78
	
Pending
	
EP12163512.2
	
CHARGE BALANCING FOR ARBITRARY WAVEFORM GENERATOR & NEURAL STIMULATION APPLICATION
	
Europe

	
79
	
Pending
	
EP12163517.1
	
ARBITRARY WAVEFORM GENERATOR & NEURAL STIMULATION APPLICATION
	
Europe

	
80
	
Pending
	
EP12166020.3
	
CURRENT STEERING NEUROSTIMULATOR DEVICE WITH UNIDIRECTIONAL CURRENT SOURCES
	
Europe

	
81
	
Pending
	
EP12169536.5
	
PATIENT HANDHELD DEVICE FOR USE WITH A SPINAL CORD STIMULATION SYSTEM
	
Europe

	
82
	
Pending
	
EP12169540.7
	
SYSTEM AND METHOD OF ESTABLISHING A PROTOCOL FOR PROVIDING ELECTRICAL STIMULATION WITH A STIMULATION SYSTEM TO TREAT A PATIENT
	
Europe

	
83
	
Pending
	
EP12172998.2
	
KEY FOB CONTROLLER FOR AN IMPLANTABLE NEUROSTIMULATOR
	
Europe

	
84
	
Pending
	
EP12173004.8
	
DUAL PATIENT PROGRAMMERS FOR AN IMPLANTABLE NEUROSTIMULATOR
	
Europe

	
85
	
Pending
	
EP12173231.7
	
ACTIVE CURRENT CONTROL USING THE ENCLOSURE OF AN IMPLANTED PULSE GENERATOR
	
Europe

	
86
	
Pending
	
EP12176586.1
	
DEVICES AND METHODS FOR VISUALLY INDICATING THE ALIGNMENT OF A TRANSCUTANEOUS ENERGY TRANSFER DEVICE OVER AN IMPLANTED MEDICAL DEVICE
	
Europe

	
87
	
Pending
	
EP12182113.6
	
IDENTIFYING AN AREA FOR ELECTRICAL STIMULATION TO TREAT A PATIENT
	
Europe

	
88
	
Pending
	
EP12182119.3
	
CONFIGURING ELECTRICAL STIMULATION TO TREAT A PATIENT
	
Europe

 

 

 

 

 

	
89
	
Pending
	
EP12182121.9
	
AUTOMATED SEARCH TO IDENTIFY A LOCATION FOR ELECTRICAL STIMULATION TO TREAT A PATIENT
	
Europe

	
90
	
Pending
	
EP13179897.7
	
CLINICIAN PROGRAMMING SYSTEM AND METHOD
	
Europe

	
91
	
Pending
	
EP13182500.2
	
METHOD AND SYSTEM OF QUICK NEUROSTIMULATION ELECTRODE CONFIGURATION AND POSITIONING
	
Europe

	
92
	
Pending
	
EP13182618.2
	
METHOD AND SYSTEM FOR ASSOCIATING PATIENT RECORDS WITH PULSE GENERATORS
	
Europe

	
93
	
Pending
	
EP13183312.1
	
METHOD OF MINIMIZING INTERRUPTIONS TO IMPLANTABLE MEDICAL DEVICE RECHARGING
	
Europe

	
94
	
Pending
	
EP13183319.6
	
IMPLANT CURRENT CONTROLLED BATTERY CHARGING BASED ON TEMPERATURE
	
Europe

	
95
	
Pending
	
EP13186926.5
	
DIGITAL CONTROL FOR IMPLANTED PULSE GENERATORS
	
Europe

	
96
	
Pending DIV
	
EP12163520.5
	
ARBITRARY WAVEFORM GENERATOR & NEURAL STIMULATION APPLICATION WITH SCALABLE WAVEFORM FEATURE
	
Europe

 

 

 

 

 

 

EXHIBIT B

 

COMPONENTS OF ALGOVITA NEUROSTIMULATION MEDICAL DEVICE

 

 

The Algovita Spinal Cord Stimulation System is a rechargeable, 24-electrode, spinal cord stimulation system for the treatment of chronic intractable pain of the trunk and/or limbs. The main components of the Algovita Spinal Cord Stimulation System include the following: 

	 	
●
	
Rechargeable, 24-channel implantable pulse generator (IPG or Stimulator) in two configurations 

	 	
o
	
3 ports x 8 independent channels (3 leads, each with 8-electrodes) 

	 	
o
	
2 ports x12 independent channels (2 leads, each with 12-electrodes) 

	 	
●
	
Anatomically compliant implantable epidural leads in the following configurations and lengths: 

	 	
o
	
percutaneous (delivered through a needle) in 45, 60, 75, 90 cm lengths 

	 	
o
	
surgical paddle leads in 45 and 60 cm lengths 

	 	
●
	
Extensions in 1x8 and 1x12 configurations with 20, 40, and 60 cm lengths 

	 	
●
	
Clinician programmer (CP) 

	 	
●
	
Programmer charger (PPC) 

	 	
●
	
Pocket programmer (PoP) 

	 	
●
	
Patient feedback tool (PFT)

 

 

 

 

 

 

EXHIBIT C

 

MILESTONES

 

	 	
●
	
Within two (2) years of the date of the substantial completion of the development of the Licensed Products under this Agreement, Licensee must receive a Conformité Européenne (CE) mark for such Licensed Products that permits the sale of such Licensed Products within the European Economic Area for application within the Field of Use (“CE Mark Approval”).

	 	
●
	
Within one (1) year of its receipt of the CE Mark Approval, Licensee must complete its first sale of the Licensed Products within the European Economic Area for application within the Field of Use.

	 	
●
	
Within two (2) years of its receipt of the CE Mark Approval, Licensee must receive the FDA’s approval of its Investigation Device Exemption application for the Licensed Products.Exhibit 10.1

 

RESTRICTED STOCK UNIT PLAN

 

Dated June 15, 2016

 

Optex Systems Holdings Inc.

 

RESTRICTED STOCK UNIT PLAN

 

		1.	Purpose 

 

The purpose of Optex Systems Holdings Inc. Restricted
Stock Unit Plan (the "Plan") is to secure for Optex Systems Holdings Inc. and its successors and assigns (the "Company")
and its stockholders the benefits of the additional incentive inherent in the ownership of the Company's common stock, par value
$0.001 per share (the "Common Stock"), by selected officers and employees of the Company and its subsidiaries who are
important to the success and growth of the business of the Company and its subsidiaries and to help the Company and its subsidiaries
secure and retain the services of such persons. The Plan provides for discretionary awards of stock units ("Restricted Stock
Units") to or for the benefit of participating officers and employees of the Company and its subsidiaries, which grants shall
be subject to the terms and conditions set forth in the Plan and in the agreement evidencing such Award. Such units can be granted
by the Committee, as hereinafter defined, based upon both future and past services.

 

		2.	Committee. 

 

		2.1	Administration. 

 

The Plan shall be administered by the Compensation Committee
(the "Committee") of the Board of Directors of the Company (the "Board of Directors"). Any vacancy on the Committee,
whether due to action of the Board of Directors or due to any other cause, may be filled by resolution adopted by the Board of
Directors. The full Board of Directors may perform any function of the Committee hereunder, in which case the term "Committee"
shall refer to the Board. The express grant of any specific power to the Committee, and the taking of any action by the Committee,
shall not be construed as limiting any power or authority of the Committee. The Committee may delegate to officers or managers
of the Company or any subsidiary or affiliate, or committees thereof, authority, other than authority to make grants under the
Plan, to perform such functions as the Committee may determine, including administrative functions, subject to such terms as the
Committee shall determine.

 

		2.2	Interpretation.

 

The Committee shall have full power and authority to
interpret the provisions of the Plan and any agreement evidencing or relating to an award of Restricted Stock Units ("Award")
under the Plan, and to determine any and all questions arising under the Plan, and its decisions shall be final and binding on
all participants in the Plan.

 

    	 	1

     

    

 

RESTRICTED STOCK UNIT PLAN

 

Dated June 15, 2016

 

		3.	Shares Subject to Grants.

 

		3.1	Number of Shares.

 

Subject to the adjustment provisions of Section 3.3,
the number of shares of Common Stock that may be issued or delivered in connection with awards of Restricted Stock Units under
the Plan shall not exceed 1,000,000 shares. The Committee may adopt reasonable counting procedures to ensure appropriate counting,
avoid double counting and make adjustments if the number of shares actually delivered differs from the number of shares previously
counted in connection with an Award. Shares subject to an Award that is canceled, expired, forfeited, settled in cash or otherwise
terminated without a delivery of shares to the participant will again be available for Awards, and shares withheld or surrendered
in payment of the taxes relating to an Award shall be deemed to constitute shares not delivered to the participant and shall be
deemed again to be available for Awards under the Plan.

 

		3.2	Character of Shares; Reservation of Shares.

 

Shares of Common Stock delivered under the Plan shall
be authorized and unissued Common Stock, or issued Common Stock which shall have been reacquired by the company and held in the
Company's treasury. The Company, during the term of this Plan, shall at all times reserve and keep available such number of shares
of Common Stock as shall be sufficient to satisfy the maximum number of shares set forth in Section 3.1, reduced by such number
of shares that have been previously issued or delivered as a result of this Plan.

 

		3.3	Adjustments.

 

The Plan and any Awards granted under the plan shall
be appropriately adjusted in the event that any recapitalization, forward or reverse split, stock dividend, reorganization, merger,
consolidation, spin-off, combination, repurchase, share exchange, liquidation, dissolution or other similar corporate transaction
or event that affects the Common Stock with a similar substantive effect upon the Plan or Awards granted under the plan. If such
an adjustment is determined by the Committee to be appropriate under the Plan, then the Committee shall, in such manner as it may
deem equitable, adjust any or all of the number and kind of shares reserved and available for Awards under the Plan and the number
and kind of shares subject to outstanding Restricted Stock Units.

 

    	 	2

     

    

 

RESTRICTED STOCK UNIT PLAN

 

Dated June 15, 2016

 

		4.	Employees Eligible. 

 

Awards may be granted to or for the benefit of any
officer, employed by the Company, or other Company employee whom the Committee selects for participation for a given performance
year. Officers shall be eligible to be granted Awards under the Plan at amounts directed by the Committee. Other employees (non
officer) may be granted Award amounts recommended by Officers and senior management, with the total Award amounts for non-officer
employees subsequently approved by the Committee in aggregate. Any individual receiving an Award under the Plan is referred to
herein as a "participant." Any reference herein to the employment of a participant by the Company shall include his or
her employment by the Company or any of its subsidiaries. Neither service as a director, nor payment of a director’s fee
by the Company shall be sufficient to constitute “employment” by the Company.

 

		5.	Restricted Stock Units.

 

		5.1	In General. 

 

The Committees’ designation of a Participant in
any year shall not require the Committee to designate such person to receive Restricted Stock Units in any other year. The Committee
shall consider such factors as it deems pertinent in selecting Participants and determining any amounts of Awards. Each Award shall
be evidenced by an agreement which shall set forth the terms and conditions of such Award, including without limitation, the date
or dates upon which such Award shall vest and the circumstances (including, without limitation, Termination of Employment, as defined
in Section 6.2, or failure to satisfy one or more restrictive covenants or other ongoing obligations) under which such Award shall
not vest. The Award shall also be subject to such other terms and conditions not inconsistent herewith as the Committee shall determine.

 

		5.2	Nature of Restricted Stock Units; Accounts. 

 

Each Restricted Stock Unit represents a right for one
share of Common Stock to be delivered upon settlement (act of receiving shares upon exercise of a Restricted Stock Unit) at the
end of the Deferral Period (as defined below), subject to a risk of cancellation and to the other terms and conditions set forth
in the Plan, the agreement evidencing the Award and any additional terms and conditions set by the Committee. The Company shall
establish and maintain an account for the participant to record Restricted Stock Units and transactions and events affecting such
units. Restricted Stock Units and other items reflected in the account will represent only bookkeeping entries by the Company to
evidence unfunded obligations of the Company.

 

    	 	3

     

    

 

RESTRICTED STOCK UNIT PLAN

 

Dated June 15, 2016

 

		5.3	Deferral Period and Settlement Date. 

 

Except as otherwise provided in this Section 5.3, Section
6 or Section 7, Restricted Stock Units (if not previously cancelled) will be automatically settled, in accordance with the applicable
vesting schedule, on or about the date or dates set forth in the agreement evidencing the Awards. The period from the date of the
Award through the date of settlement is referred to as the "Deferral Period." The Committee may permit the participant
to elect to further defer settlement (thereby extending the Deferral Period), subject to such terms and conditions as the Committee
may specify. In addition, unless otherwise determined by the Committee, if the Committee reasonably determines that any settlement
of Restricted Stock Units would result in payment of compensation to a participant which is not deductible by the Company under
Code Section 162(m), such settlement shall be automatically deferred to the extent necessary to avoid payment of such non-deductible
compensation, with this automatic deferral of each Restricted Stock Unit continuing only until such date as settlement can be effected
without loss of deductibility by the Company under Section 162(m).

 

		5.4	Vesting of Restricted Stock Units. 

 

In the event that an Award agreement does not provide
for a vesting schedule, the Restricted Stock Units thereby shall become vested as to (a) one third of the units vesting on the
first anniversary of the Award, (b) one third of the units vesting on the second anniversary of the Award, (c) one third of the
units vesting on the third anniversary of the Award. Unless otherwise determined by the Committee or unless otherwise provided
in the agreement evidencing the Award, in the event of the participant's Termination of Employment (as defined in Section 6.2),
the participant's Restricted Stock Units which are not vested as of the date of such Termination of Employment, shall not vest
and shall be immediately cancelled for no value.

 

		5.5	Rights as a Shareholder.

 

A Participant shall have no rights as a shareholder
with respect to Common Stock covered by a Restricted Stock Units Award until the Common Shares have been vested and issued in settlement,
pursuant to the Award agreement and applicable deferral period. No participant shall have voting rights, and no adjustment shall
be made for dividends in cash or other property or distributions or other rights with respect to any such common stock for which
the record date is prior to the date on which the Participant shall have become the holder of record of any such shares covered
by the Award agreement; provided, however, that Participants are entitled to share adjustments to reflect capital changes
under Section 3.3.

 

    	 	4

     

    

 

RESTRICTED STOCK UNIT PLAN

 

Dated June 15, 2016

 

		5.6	Restriction on Transferability during Deferral Period. 

 

During the Deferral Period, the participant shall not
be permitted to sell, transfer, pledge, or otherwise encumber the Restricted Stock Units or the shares issuable in settlement thereof,
except to the extent specifically approved by the Committee or as provided in the agreement evidencing the Award.

 

		5.7	Delivery of Shares in Settlement of Restricted Stock Units; Fractional Shares.

 

The Company may make delivery of shares hereunder in
settlement of Restricted Stock Units by either delivering one or more certificates representing such shares to the participant,
registered in the name of the participant (and any joint name, if so directed by the participant), by depositing such shares into
an account maintained for the participant (or of which the participant is a joint owner, with the consent of the participant) by
a broker-dealer affiliated with the Company or any such account established in connection with any Company plan or arrangement
providing for investment in Common Stock and under which the participant's rights are similar in nature to those under a stock
brokerage account or by delivering such shares to the Trustee ("Trustee") of a pension plan of which the participant
is a member. If the Committee determines to settle Restricted Stock Units by making a deposit of shares into such an account, the
Company may settle any fractional Restricted Stock Unit by means of such deposit. In other circumstances or if so determined by
the Committee, the Company shall instead pay cash in lieu of fractional shares, on such basis as the Committee may determine. In
no event will the Company in fact issue fractional shares. The Committee may determine whether, prior to settlement, Restricted
Stock Units will be reflected as whole units only or include fractional units, and related terms.

 

		5.8	Definition of "Fair Market Value."

 

Unless otherwise determined by the Committee, "Fair
Market Value" of a share of Common Stock on any date means (i), if the Common Stock is listed on a national securities exchange
or quotation system reporting last-sale information, the closing sales price on such exchange or quotation system on such date
or, in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were
reported; (ii), if the Common Stock is not listed on a national securities exchange or quotation system providing last-sale information,
the mean between the bid and offered prices as quoted by the Nasdaq System for such date; or (iii), if the fair market value cannot
be determined under clause (i) or (ii) hereof, the fair value as determined by such other method as the Committee determines in
good faith to be reasonable.

 

    	 	5

     

    

 

RESTRICTED STOCK UNIT PLAN

 

Dated June 15, 2016

 

		6.	Certain Termination Provisions.

 

In the event of a participant's Termination of Employment
the following provisions shall apply. The consequences of a participant's Termination of Employment shall also be set forth in
the agreement evidencing the Award.

 

		6.1	Death, Permanent Disability or Retirement. 

 

In the event of a participant's Termination of Employment
due to death, permanent disability or retirement after attainment of age 65, Restricted Stock Units Awards that would otherwise
have vested by the 90th day subsequent to the termination date, shall become fully vested at the date of such Termination
of Employment, and the Deferral Period applicable to such Restricted Stock Units shall end and such units shall be settled in full
by delivery of shares as promptly as practicable following such Termination of Employment. Any portion of the participant's unvested
Restricted Stock Units which have a vesting date beyond 90 days from the date of such Termination of Employment shall not vest
and shall be immediately cancelled for no value.

 

		6.2	Termination of Employment Other than Death, Permanent Disability or Retirement

 

For purposes of this Plan: "Termination of Employment"
means the event by which participant ceases to be employed by the Company or any subsidiary of the Company and, immediately thereafter,
is not employed by or providing substantial services to any of the Company or a subsidiary of the Company. Neither (i) a transfer
of an employee from the Company to a subsidiary or other affiliate of the Company to another, nor (ii) a duly authorized leave
of absence, shall be deemed a Termination of Employment.

 

		6.2.1	Involuntary Termination of Employment - Officers

 

Involuntary Termination will be deemed to occur upon
(i) the Officers involuntary dismissal or discharge by the Committee, the Company or its subsidiaries or their successors for reasons
other than cause or (ii) such Officers voluntary resignation following (i) a reduction in his or her level of compensation (including
base salary, fringe benefits and any corporate-performance based bonus or incentive programs) by more than ten percent or (ii)
a relocation of such individual’s place of employment by more than fifty (50) miles, provided and only if such reduction
or relocation is effected by the Company or its subsidiaries or their successor without the Officers written consent.

 

In the event of the involuntary termination of an
Officer (Participant) all unvested Restricted Stock Units shall become fully vested at the date of such Termination of Employment,
and the Deferral Period applicable to all Restricted Stock Units shall end and such units shall be settled in full by delivery
of shares, net of any shares withheld to satisfy the officer’s tax requirement, as promptly as practicable following such
Termination of Employment.

 

    	 	6

     

    

 

RESTRICTED STOCK UNIT PLAN

 

Dated June 15, 2016

 

		6.2.2	Other Termination of Employment

 

In the event of the termination of employment of the
Participant by the Participant or the Company and its subsidiaries for any reason whatsoever other than death, permanent disability
or retirement (as defined in Section 6.1), or involuntary termination of an officer (as defined in Section 6.2.1) any Restricted
Stock Units that were not vested prior to the date of such termination of employment shall not vest and shall be immediately cancelled
for no value. Any vested but undistributed Restricted Stock Unit Shares will be distributed as promptly as practicable, net of
any shares withheld to satisfy the employee’s tax requirement.

 

		7.	Change in Control.

 

		7.1	Effect of a Change in Control. 

 

In the event of a Change in Control of the Company,
as defined below, the Committee shall provide that one of the following actions, at the Committees discretion, shall be taken as
a result, or in anticipation, of any such event to assure fair and equitable treatment of participants:

 

(i) acceleration of vesting of the Restricted Stock
Units and/or acceleration of the termination of the Deferral Period and settlement of Restricted Stock Units under the Plan;

 

(ii) offer to purchase any outstanding Restricted Stock
Units under the Plan from the participant or the Trustee for the award's equivalent cash value, as determined by the Committee,
as of the date of the Change in Control or another specified date; or

 

(iii) make adjustments or modifications, such as providing
for the assumption of the Restricted Stock Units by an acquirer and conversion of the underlying Common Stock to securities of
the acquirer, as the Committee deems appropriate to maintain and protect the rights and interests of the participants following
such Change in Control.

 

Any such action approved by the Committee shall be conclusive
and binding on the Company, its subsidiaries and all participants.

 

    	 	7

     

    

 

RESTRICTED STOCK UNIT PLAN

 

Dated June 15, 2016

 

		7.2	Definitions Relating to Change in Control.

 

To the extent not otherwise defined in this Plan, the
following terms used in this Section 7 shall have the following meanings:

 

"Affiliate" of a Person means any other
person or entity which controls, is controlled by, or under common control with, the Person.

 

"Associate" of a Person means (a) any
corporation or organization of which such Person is an officer or partner or is, directly or indirectly, the Beneficial Owner of
10% or more of any class of equity securities, (b) any trust or other estate in which such Person has a substantial beneficial
interest or as to which such Person serves as trustee or in a similar fiduciary capacity and (c) any relative or spouse of such
Person, or any relative of such spouse, who has the same home as such Person or who is a director or officer of such Person or
any of its parents or subsidiaries.

 

"Beneficial Owner" has the meaning
ascribed thereto in Rule 13d-3 under the Exchange Act, except that, in any case, a Person shall be deemed the Beneficial Owner
of any securities owned, directly or indirectly, by the Affiliates and Associates of such Person.

 

"Change in Control" means (a) a majority
of the Board of Directors ceases to consist of Continuing Directors; (b) any Person is or becomes the Beneficial Owner of 50% or
more of the outstanding voting power of the Company unless such acquisition is approved by a majority of the Continuing Directors;(c)
there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other
corporation, other than a merger or consolidation with respect to which requirements of clauses (A) and (B) below are satisfied:
(A) the voting securities of the Company outstanding immediately prior to such merger or consolidation continue to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) more than
50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof (as the case may
be) outstanding immediately after such merger or consolidation and (B) individuals who constitute the Board of Directors immediately
prior to the execution of the definitive agreement pertaining to such merger or consolidation continue immediately following such
merger or consolidation to represent at least a majority of the membership of the Board of Directors of the Company or such surviving
entity or any parent thereof (as the case may be); (d) the stockholders of the Company approve an agreement to dispose of all or
substantially all of the assets of the Company, unless such disposition is approved by a majority of the Continuing Directors.

 

"Continuing Director" means any member
of the Board of Directors who is a member on the effective date of the Plan or who is elected to the Board of Directors after such
date upon the recommendation or with the approval of a majority of the Continuing Directors at the time of such recommendation
or approval.

 

    	 	8

     

    

 

RESTRICTED STOCK UNIT PLAN

 

Dated June 15, 2016

 

"Exchange Act" means the Securities
Exchange Act of 1934, as amended.

 

"Person" means an individual, a corporation,
a partnership, an association, a joint stock company, a trust, any unincorporated organization or a government or a political subdivision
thereof.

 

		8.	General Provisions.

 

		8.1	Limitation on Rights Conferred Under Plan. 

 

Neither the Plan nor any action taken hereunder shall
be construed as (i) giving any eligible employee or participant the right to continue in the employ or service of the Company or
a subsidiary or affiliate, (ii) interfering in any way with the right of the Company or a subsidiary or affiliate to terminate
such eligible employee's or participant's employment or service at any time, (iii) giving an eligible employee or participant any
claim to be granted any Award under the Plan or to be treated uniformly with other participants and employees, or (iv) conferring
on a participant any of the rights of a stockholder of the Company unless and until the participant is duly issued or transferred
shares of Common Stock in accordance with the terms of an Award. Except as expressly provided in the Plan and an Award agreement,
neither the Plan nor any Award agreement shall confer on any person other than the Company and the participant any rights or remedies
thereunder.

 

		8.2	Committee May impose Conditions; Right of Setoff. 

 

The Company or any subsidiary may, to the extent permitted
by applicable law, deduct from and set off against any amounts the Company or a subsidiary or affiliate may owe to a participant
from time to time pursuant to any Award under the Plan, any amounts owed by the participant to the Company or any subsidiary or
affiliate, although the participant shall remain liable for any part of the participant's payment obligation not satisfied through
such deduction and setoff.

 

		8.3	Tax Withholding Obligation. 

 

Whenever under the Plan a participant or a Trustee incurs
federal income tax liability, obligations with respect to Social Security and Medicare taxes, or other tax obligations in connection
with an Award, whether at the time of grant, vesting or settlement of Restricted Stock Units, the Company shall be entitled to
require, as a condition of grant, vesting, or settlement of the award, that the participant remit or, in appropriate cases, agree
to remit when due, an amount sufficient to satisfy all federal, state and local withholding tax requirements relating thereto.
At the election of the participant, such mandatory withholding amounts may be remitted by check payable to the Company, by the
Company's withholding of shares of Common Stock issuable or deliverable hereunder “net share holdback”, or any combination
thereof; provided, however, that in no event may shares be withheld to satisfy a tax obligation of a participant in excess of the
mandatory tax withholding obligations arising in connection with the participant's Award.

 

    	 	9

     

    

 

RESTRICTED STOCK UNIT PLAN

 

Dated June 15, 2016

 

		8.4	Governing Law.

 

The validity, construction, and effect of the Plan,
any rules and regulations relating to the Plan and any Award agreement shall be determined in accordance with the laws of the State
of Delaware, without giving effect to principles of conflicts of laws, and applicable provisions of federal law.

 

		8.5	Non-exclusivity of the Plan.

 

The adoption of the Plan by the Board of Directors shall
not be construed as creating any limitations on the power of the Board of Directors or a committee thereof to adopt such other
incentive arrangements, apart from the Plan, as it may deem desirable, and such other arrangements may be either applicable generally
or only in specific cases.

 

		8.6	Changes to the Plan and Awards. 

 

The Board of Directors may amend, suspend or terminate
the Plan or the Committee's authority to grant Awards under the Plan without the consent of participants; provided, however, that,
without the consent of an affected participant, no such Board action may materially and adversely affect the rights of such participant
under any outstanding Award. The Committee may amend any outstanding Award without the consent of the affected participant; provided,
however, that, without such consent, no such action may materially and adversely affect the rights of such participant under any
outstanding Award. For purposes of this Section 8.6, accelerated settlement of an Award shall not be considered a materially adverse
effect on the rights of a participant, regardless of the tax consequences to such participant.

 

		8.7	Compliance with Legal and Other Requirements.

 

The Company may, to the extent deemed necessary or advisable
by the Committee, postpone the issuance or delivery of shares or payment of other benefits under any Award until completion of
registration or qualification of the Common Stock or other required action under any federal or state law, rule or regulation,
listing or other required action with respect to any stock exchange or automated quotation system upon which the Common Stock or
other securities of the Company are listed or quoted, or compliance with any other obligation of the Company, as the Committee
may consider appropriate, and may require any participant to make such representations, furnish such information and comply with
or be subject to such other conditions as it may consider appropriate in connection with the issuance or delivery of shares or
payment of other benefits in compliance with applicable laws, rules, and regulations, listing requirements, or other obligations.

 

    	 	10

     

    

 

RESTRICTED STOCK UNIT PLAN

 

Dated June 15, 2016

 

		9.	Plan Effective Date and Termination. 

 

The Plan became effective on June 15,,
2016. Unless earlier terminated by action of the Board of Directors, the Plan will remain in effect until such time as no shares
of Common Stock remain available for delivery under the Plan and the Company has no further rights or obligations with respect
to outstanding Awards under the Plan.

 

    	 	11

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