TECHNOLOGY TRANSFER AGREEMENT
Exhibit 10.18
This Technology Transfer Agreement (this “Agreement”) is entered into as of June 16, 1994, by
and between Xxxxxxx X. Xxxxxxxxx, M.D. (“Demopulos”) and Omeros Medical Systems, Inc., a Washington
corporation (“Omeros”).
Demopulos, along with Xxxxxxx X. Xxxxxx, Ph.D., P.E. (“Xxxxxx”), is the inventor of certain
technology relating to the surgical repair of lacerated or ruptured anatomic soft tissues (as
further described below, the “Technology”). Demopulos desires to transfer all his right, title and
interest in and to the Technology to Omeros for further research, development and
commercialization, and Omeros desires to obtain ownership of and other rights in the Technology for
such purpose.
For good and valuable consideration, the receipt and sufficiency of such consideration being
hereby acknowledged, the parties agree:
1. Definitions. The following definitions apply whenever the specified terms are used
in this Agreement or in any attachments to this Agreement:
a. “Confidential Information” means confidential information relating to the
Technology, now existing or hereafter arising, including without limitation, research,
developments, inventions, technical data, any type of product development, and any and all other
processes, formulae, marketing plans or proposals, customer lists or other customer information,
financial information, or any observations, data, written material, records or documents.
Confidential Information includes any such information whether or not such information was
developed, devised or otherwise created in whole or in part by the efforts of Demopulos or Omeros.
Confidential Information shall not include a matter of public knowledge, unless such matter become
public knowledge as a result of unauthorized disclosure to the general public, or the combination
of such matters would amount to Confidential Information. In any dispute over whether information
is Confidential Information for purposes of enforcement of this Agreement, it shall be the burden
of Demopulos to show that such contested information is neither confidential nor a Trade Secret.
b. “Intellectual Property Rights” mean all intellectual property rights arising under
federal, state or common law and relating to the Technology, including without limitation Patent
Rights and Know-How.
c. “Know-How” means all information, now existing or hereafter acquired, known to
Demopulos and related in any way to the Technology, including without limitation, information
directly or indirectly related to any formula, method, procedure, process, composition of matter,
design, material, or other subject matter that contributes in whole or in part to the present or
future commercial development, exploitation, utilization or understanding of the Technology.
Know-How also includes, without limitation, the following: (a) any Confidential Information;
(b) any information relating in any way to the Technology that may result from further research
sponsored in whole or in part by Omeros; and (c) any information relating to the Technology,
whether or not such information was developed, devised or otherwise created in whole or in
part by the efforts of Demopulos or Omeros and whether or not it is a matter of public knowledge.
d. “New Invention” means any invention, discovery, concept, idea, information or
improvement, whether or not patentable, that is (i) made, developed or conceived in whole or in
part while Demopulos is an employee, agent, officer, director, or shareholder of Omeros, and
(ii) is derived from the Technology.
e. “Patent Rights” mean the rights of Demopulos to any and all matter claimed in or
disclosed by any and all present and future letters patent, pending applications for patents and
other legal rights applied for by or granted to Demopulos, alone or with another or others, as
inventor or co-inventor in any country with respect to or in connection with the Technology, and
any and all divisions, continuations, continuations-in-part, reissues, substitutions,
re-examinations, extensions and renewals arising therefrom or issuing thereon. Without limiting
the generality of the foregoing, Patent Rights include without limitation, any and all foreign
rights related to, derived from, or claiming priority from U.S. Patent Rights.
f. “Technology” means that certain technology developed in whole or in part by
Demopulos and related to the surgical repair of lacerated or ruptured anatomic soft tissues,
including but not limited to tendons and/or ligaments, which technology currently includes and is
embodied by a surgical device commonly referred to as the “Tendon Splice” along with related
application instruments. Without limiting the generality of the foregoing, the Technology shall
include, without limitation, all related advances or improvements, whether or not patentable.
g. “Trade Secrets” mean any and all Confidential Information within the definition of
that term as set forth in RCW Chapter 19.108.
2. Transfer of Technology.
a. Present Technology. Demopulos hereby irrevocably sells, assigns, conveys and
otherwise transfers to Omeros all right, title and interest in and to the Technology, Know-How,
Patent Rights, and other Intellectual Property Rights, which right, title, and interest he now
possess or may hereafter acquire. Such transfer hereby includes, without limitation, all right,
title and interest of Demopulos in and to the Patent Rights, and any and all existing records that
contain Know-How. Upon execution of this Agreement, Demopulos shall execute an Assignment of
Patent Rights in the form attached hereto as Exhibit A, and shall identify for Omeros any and all
existing records that contain Know-How. Demopulos and Omeros jointly shall determine which of such
records shall be delivered to Omeros as originals or as copies, and such records shall be
identified and categorized in writing no later than thirty (30) days after execution of this
Agreement. Demopulos shall then transfer and deliver to Omeros all such records that contain
Know-How in a form reasonably understandable by any physician or scientist generally knowledgeable
of methods of tendon surgery. Upon such transfer and delivery, such records shall be the property
of Omeros and shall be under Omeros’ exclusive control. Thereafter, on a timely basis, but not
less than quarterly, Demopulos shall develop, produce, deliver to Omeros and maintain permanent
records, in writing or otherwise, that set forth Know-How in a form reasonably understandable by
any physician or scientist generally knowledgeable of relevant surgical methods.
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b. Future Developments. Demopulos acknowledges that title to any and all New
Inventions shall immediately vest in Omeros. Immediately upon the development of any New
Invention, Demopulos shall disclose such New Invention to Omeros in writing. From time to time,
Demopulos shall execute such documents as Omeros may reasonably require to evidence assignment to
Omeros of all right, title, and interest in and to such New Inventions.
c. Other Inventions. Pursuant to RCW 49.44.150, Demopulos shall disclose to Omeros
all inventions being developed by Demopulos for the purpose of determining whether such inventions
are New Inventions or Other Inventions. If Demopulos receives any bona fide offer to transfer all
or any portion of any Other Invention, Demopulos immediately shall disclose to Omeros the nature of
such Other Invention and the terms of such offer. For a period of at least ten (10) years, Omeros
will not at any time, without the express prior written consent of Demopulos, disclose or otherwise
make known or available to any person, firm, corporation or other entity, nor shall Omeros use for
its own account, any such Other Invention so disclosed by Demopulos.
3. Covenant Not to Disclose. For a period of at least ten (10) years, Demopulos shall
not at any time, without the express prior written consent of Omeros, disclose or otherwise make
known or available to any person, firm, corporation or other entity, or use for their own account,
any Confidential Information. Both Demopulos and Omeros shall utilize reasonable procedures to
safeguard Confidential Information, including releasing Confidential Information to employees of
Omeros only on a “need-to-know” basis.
4. Consideration. The shares of the common stock of Omeros being issued to Demopulos
as of the date of this Agreement shall constitute consideration for the transfer of rights
described in Section 2 above, for Demopulos’ covenant not to disclose Confidential Information, and
for other covenants and promises made by Demopulos hereunder.
5. Specific Performance. Demopulos and Omeros acknowledge that (a) the covenants set
forth in Sections 2 and 3 are essential elements of the transactions contemplated in this
Agreement, that, but for the agreement of the parties to comply with such covenants, neither
Demopulos nor Omeros would have entered into such transactions, and that each party has consulted
with counsel and has been advised in all respects concerning the reasonableness of such covenants
as to scope and limit of time; (b) the nonbreaching party will not have any adequate remedy at law
if the other party violates the terms of Section 2 or 3 or fails to perform any of its other
obligations hereunder; and (c) the nonbreaching party shall have the right, in addition to any
other rights it may have, to obtain in any court of competent jurisdiction temporary, preliminary
and permanent injunctive relief to restrain any breach or threatened breach, or otherwise to
specifically enforce, any of such covenants or any other obligations if the breaching party fails
to perform any of its obligations under this Agreement.
6. Right to Repurchase Technology. In the event that Omeros either (a) files for
liquidation under Chapter 7 of the United States Bankruptcy Act, or (b) undertakes a voluntary
dissolution, liquidation and termination (except in connection with a merger, reorganization,
consolidation or sale of assets), Demopulos shall have the right, along with co-inventor Xxxxxx, to
repurchase the Technology from Omeros for a price equal to the then-current fair market value of
the Technology. If the parties are unable to agree upon the fair market value of the Technology
within
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thirty (30) days after the filing or undertaking described above, then such value shall be
established by the appraisal of a qualified, mutually acceptable independent appraiser. In the
event the parties are unable to agree upon an appraiser within sixty (60) days after the filing or
undertaking described above, then Demopulos and Omeros each shall select an independent appraiser,
and the two appraisers shall select a third independent appraiser. The three appraisers shall
conduct such appraisal proceeding in accordance with the Commercial Arbitration Rules of the
American Arbitration Association as then in effect, and the decisions of the appraisers shall be
delivered to the parties not later than four months after the commencement of such appraisal
proceeding. All such appraisal proceedings shall take place in Seattle, Washington and all results
of such proceedings shall be binding on Demopulos and Omeros. All appraisal expenses shall be paid
by Demopulos. Demopulos’ rights to repurchase the Technology under this Section 6 are subject to
the similar rights of co-inventor Xxxxxx, with whom Omeros executed an agreement substantially
similar hereto. In the event that both Demopulos and Xxxxxx desire to exercise their respective
rights to repurchase the Technology, those parties shall be responsible for negotiating between
themselves their individual rights and obligations with regard to such transfer, and Demopulos and
Xxxxxx shall exercise their rights jointly in any transaction involving Omeros.
7. Severability. The invalidity of all or any part of any section of this Agreement
shall not render invalid the remainder of this Agreement or the remainder of such section. If any
provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted
to be only so broad as is enforceable. Demopulos and Omeros agree and stipulate that the covenants
set forth in Sections 2, 3 and 6 are fair and reasonably necessary for the protection of their
protectable interests. In the event a court of competent jurisdiction should decline to enforce
any provision of Sections 2, 3 or 6, Sections 2, 3 or 6 shall be deemed to be modified to the
minimum extent which the court shall find enforceable.
8. Miscellaneous.
a. Headings. The headings of the sections and paragraphs of this Agreement are
inserted for convenience only, and shall not control or affect the meaning or construction of any
provisions hereof.
b. Waiver of Breach. Neither the waiver of any breach of any provision of this
Agreement, nor failure to enforce any provision hereof, shall operate or be construed as a waiver
of any subsequent breach by either party.
c. Disputes. In any litigation or dispute arising out of this Agreement, the
substantially prevailing party will be entitled to recover, in addition to other relief granted,
all reasonable costs and attorneys’ fees, including such costs and fees on appeal.
d. Rights Cumulative. The provisions of this Agreement shall not be construed as
limiting any rights or remedies that either party may otherwise have under applicable law.
e. Governing Law. The rights and obligations under this Agreement shall in all
respects be governed by the laws of the State of Washington. This Agreement is intended to
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supplement and not to supersede the rights of the parties under the Uniform Trade Secrets Act,
as adopted by the State of Washington.
f. Integration. This Agreement as herein written constitutes the entire understanding
between the parties pertaining to the subject matter contained in it, and supersedes all prior and
contemporaneous agreements, representations and understandings of the parties. It is expressly
understood and agreed that this Agreement may not be altered, amended, modified or otherwise
changed in any respect whatsoever, except by a writing duly executed by the parties.
DATED as of June 16, 1994.
| /s/ Xxxxxxx X. Xxxxxxxxx | ||||
| Xxxxxxx X. Xxxxxxxxx, M.D. | ||||
| Omeros Medical Systems, Inc. | ||||
| By | /s/ H. Xxxxxxx Xxxxxxxxxx | |||
| H. Xxxxxxx Xxxxxxxxxx, Its V.P. | ||||
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EXHIBIT A
PATENT RIGHTS ASSIGNMENT
FOR VALUE RECEIVED, I, Xxxxxxx X. Xxxxxxxxx, M.D., hereby sell, assign and transfer unto
Omeros Medical Systems, Inc., a Washington corporation (“Omeros”) as assignee, and its successors,
assigns and legal representatives, the entire right, title and interest, for all countries in and
to certain inventions associated with certain technology related to the surgical repair of
lacerated or ruptured anatomic soft tissues, as more particularly described in that certain
Technology Transfer Agreement between Omeros and me, dated as of June 16, 1994, and all the rights
and privileges under any and all letters patent that may be granted therefor.
I request that any and all patents for said inventions be issued to said assignee, its
successors, assigns and legal representatives, or to such nominees as it may designate.
I agree that, when requested, I will, without charge to said assignee but at its expense, sign
all papers, take all lawful oaths, and do all acts which may be necessary, desirable or reasonably
appropriate for securing and maintaining patents for said inventions in any and all countries and
for vesting title thereto in said assignee, its successors, assigns and legal representatives or
nominees.
I authorize and empower the said assignee, its successors, assigns and legal representatives
or nominees, to invoke and claim for any application for patent or other form of protection for
said inventions filed by it or them, the benefit of the right of priority provided by the
International Convention for the Protection of Industrial Property, as amended, or by any
convention which may henceforth be substituted for it, and to invoke and claim such right of
priority without further written or oral authorization from us.
I hereby consent that a copy of this assignment shall be deemed a full legal and formal
equivalent of any assignment, consent to file or like document which may be required in any country
for any purpose and more particularly in proof of the right of the said assignee or nominee to
claim the aforesaid benefit of the right of priority provided by the International Convention for
the Protection of Industrial Property, as amended, or by any convention which may henceforth be
substituted for it.
I covenant with said assignee, its successors, assigns and legal representatives, that the
rights and property herein conveyed are free and clear of any encumbrance, and that we have full
right to convey the same as herein expressed.
SIGNED AT Seattle, Washington, as of the 16th day of June, 1994.
| /s/ Xxxxxxx X. Xxxxxxxxx | ||||
| Xxxxxxx X. Xxxxxxxxx, M.D. | ||||
Witnessed and Accepted:
Omeros Medical Systems, Inc.
By
|
/s/ H. Xxxxxxx Xxxxxxxxxx | |||
| H. Xxxxxxx Xxxxxxxxxx, Its V.P. |
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