TECHNOLOGY TRANSFER AGREEMENT
Exhibit 10.9
This Technology Transfer Agreement (this “Agreement”) is entered into as of July 28,
2005 by and among Micrus Endovascular Corporation, a Delaware corporation (“Buyer”) and
Vascular FX, LLC, a Delaware limited liability company (“Seller”), and each of the
undersigned members of Seller (each a “Member” and collectively the “Members”).
1.1
“Assets” has the meaning set forth in Section 2.1.
1.2 “Change of Control” shall mean (a) the acquisition of the Buyer by another entity
by means of any transaction or series of related transactions, including without limitation any
reorganization, merger, or consolidation (but excluding any transaction effected exclusively for
purposes of raising capital) that results in the transfer of fifty percent (50%) or more of the
outstanding voting power of the Buyer, or (b) the sale of all or substantially all of the Buyer’s
assets.
1.3 “Closing” or “Closing Date” shall mean the date upon which the first of
the following occurs: (a) Seller completes each of the conditions set forth in Section 4 hereto, or
(b) notwithstanding that certain of the conditions set forth in Section 4 hereto have not yet been
completed, Buyer notifies Seller that Buyer wishes to waive such conditions and purchase the Assets
upon and subject to the terms contained herein.
1.4 “Copyrights” means (a) the Copyrights disclosed on Exhibit B, (b) any
Copyright in any original works of authorship fixed in any tangible medium of expression as set
forth in 17 U.S.C. Section 101 et. seq., relating to the Deflectable Catheter Products not
otherwise disclosed on Exhibit B, whether registered or unregistered, including any
applications for registration thereof, and any corresponding foreign Copyrights under the laws of
any jurisdiction, in each case, whether registered or unregistered, and any applications for
registration thereof, and (c) moral rights under the laws of any jurisdiction relating to the
Deflectable Catheter Products not otherwise disclosed on Exhibit B.
***Certain confidential information contained in this document, marked by brackets, has been
omitted and filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.
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1.5 “Deflectable Catheter Product(s)” means the Seller’s catheter having at least a
deflectable tip, including but not limited to Interventional Radiology, Interventional Cardiology
and Interventional Neurology versions of such products, which forms the subject matter of the
Patents and includes the tools, devices, and surgical instrumentation relating to the development,
manufacturing, construction, repair, manipulation, adjustment, administration, implantation, and
otherwise of such products, in each case as currently constituted and to the extent developed by or
acquired by the Seller through the date hereof as further described in written specifications
delivered to Buyer concurrently herewith (the “Specifications”), not including any improvements by
the Buyer. There are five Deflectable Catheter Product categories: (1) catheter with a deflectable
tip and without a balloon (Deflectable Tip Catheter); (2) catheter with deflectable tip and having
one or compliant balloons fixed to the catheter (Deflectable Tip Temporary Occlusion Balloon
Catheter); (3) catheter with a deflectable tip having one or more non-compliant balloons fixed to
the catheter (Deflectable Tip Balloon Catheter); (4) catheter with a deflectable tip catheter
wherein the push-pull wire can be actuated to and fro to cause deflection in a plane and/or the
push-pull wire can be torqued or twisted causing out-of-plane deflection (Deflectable Torque Tip
Catheter); and (5) guide wire designed specifically to improve tracking and/or clinical performance
of Deflectable Catheter Products.
1.6 “Intellectual Property” means any and all (a) Patents, (b) Copyrights, (c)
Trademarks, (d) Know How, (e) all right, title and interest in and to any and all causes of action
and rights of recovery for past infringement, or misappropriation, relating to any of the
foregoing, (f) the inventions disclosed in any of the Patents, and (g) the right to claim priority
from any one or more of the Patents.
1.7 “Intellectual Property Documentation” means any and all documentation, in whatever
form, in Seller’s possession or accessible to Seller as of the Closing Date without undue cost,
relating to the Deflectable Catheter Products, Intellectual Property, or Know How, including but
not limited to drawings, electronic and paper files, notebooks, email correspondence, copies or
originals of any application, certificate, filing, registration or other document issued by, filed
with, or recorded by, any U.S., foreign, or international, state, government, or other public or
private legal authority at any time relating to the Patents, Copyrights, Trademarks, and Know How,
any drafts of such filings, and all lists and names of customers / patients and prospective
customers / patients of the Deflectable Catheter Products owned, possessed, or identified by
Seller.
1.8 “Interventional Cardiology (IC) Market” means channels of distribution wherein
medical products are sold to medical professionals and establishments treating coronary vascular
disease.
1.9 “Interventional Neurology (IN) Market” means channels of distribution wherein
medical products are sold to medical professionals and establishments treating cerebral vascular
disease.
1.10 “Interventional Radiology (IR) Market” means channels of distribution wherein
medical products are sold to medical professionals and establishments treating peripheral vascular
disease not including coronary vascular disease and/or cerebral vascular disease.
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1.11 “Know How” means any inventions, invention disclosures, trade secrets,
proprietary information, manufacturing and construction methods, processes, procedures, and
technology or other special knowledge or information, however manifested, relating to or unique to
the Deflectable Catheter Products.
1.12 “Markets” means the Interventional Cardiology Market, the Interventional
Neurology Market, and the Interventional Radiology Market.
1.13 “Net Selling Price” means gross sales less sales commissions and discounts (not
to exceed in the aggregate 30% without the consent of Seller), shipping, taxes and returns.
1.14 “Patents” means (a) the patent applications and patents disclosed on Exhibit
B, (b) all patent applications and patents relating to the Deflectable Catheter Products not
otherwise disclosed on Exhibit B, (c) all divisions, continuations, continuations-in-part,
and substitutions thereof, (d) all foreign patents relating to the Deflectable Catheter Products
and foreign patent applications corresponding to the preceding applications not otherwise disclosed
on Exhibit B, and (e) all U.S. and foreign patents issuing on any of the preceding
applications not otherwise disclosed on Exhibit B, including extensions, reissues, and
re-examinations.
1.15 “Taxes” means sales and use taxes, real and personal property taxes, gross
receipts taxes, documentary transfer taxes, employment taxes, withholding taxes, unemployment
insurance contributions and other taxes or governmental charges of any kind, however denominated,
including any interest, penalties and additions to tax in respect thereto.
1.16 “Trademarks” means (a) the trademarks disclosed on Exhibit B, (b) any
trademark, service xxxx, trade name, domain name, and the like, or other word, name, symbol or
device, or any combination thereof, used or intended to be used to identify and distinguish the
source or origin of Deflectable Catheter Products and related services not otherwise disclosed on
Exhibit B, and (c) all registrations and applications therefor throughout the world and all
common law and other rights therein throughout the world related to the Deflectable Catheter
Products not otherwise disclosed on Exhibit B.
2.1 Purchased Assets. Upon the Closing Date, Buyer shall purchase and acquire from
Seller, and Seller shall sell, transfer, assign and deliver to Buyer, all right, title, and
interest in and to, free and clear of all liens, mortgages, claims, security interests, or
encumbrances, (a) the Intellectual Property, (b) the goodwill related thereto and (c) the
Intellectual Property Documentation (collectively Section 2.1(a) through (c), the
“Assets”).
2.2 No Assumption of Liabilities. Buyer shall not assume any Asset-related
liabilities, obligations, or otherwise that accrued, arose, or related to the Assets before the
Closing Date except for those liabilities which Buyer expressly assumes pursuant to this Section
2.2, as set forth on Exhibit C (the “Assumed Liabilities”). For greater certainty,
Buyer expressly is not assuming any obligations or liabilities, whether accrued, absolute,
contingent, matured, unmatured or other, of Seller except for the Assumed Liabilities.
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2.3 Purchase Price. In consideration of the sale, transfer, assignment, and delivery
by Seller to Buyer of the Assets, Buyer shall pay to Seller on the Closing Date the amount of
$1,500,000 and, upon and subject to the conditions set forth in Section 2.4, the Additional
Payments (as defined below) (together, the “Purchase Price”) by wire transfer of US dollar
denominated funds to a bank account designated by Seller or, if Seller fails to give Buyer written
wire instructions, by delivery of a check payable in immediately available funds to the order of
Seller.
2.4 Additional Payments.
***
Confidential Treatment Requested
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[***] are reached in [***], then the Start Date would be [***]. The
Earn-out Period would expire on [***]; if the Start Date for a Deflectable Tip
Temporary Occlusion Balloon Catheter for the IN is [***], then the corresponding
Earn-out Period would terminate on [***]
Buyer shall calculate and pay the Earn-Out on a quarterly basis, with each payment made within
sixty (60) days following the close of the applicable quarter. Payment shall be made by wire
transfer of US dollar denominated funds to a bank account designated by Seller or its designees or,
if Seller or its designees fails to give Buyer written wire instructions, by delivery of a check
payable in immediately available funds to the order of Seller or its designees.
For the purposes of this Section 2.4(c), Buyer hereby agrees that notwithstanding actual sales of
Deflectable Catheter Products, and subject to FDA Approval of the use of Deflectable Catheter
Products in the IN Market, the following mandatory minimums shall apply in the Interventional
Neurology Market for the years reflected below (the “Aggregate Mandatory Minimums”):
Interventional | ||||
Neurology | ||||
Year | Market | |||
[***] |
[***] |
In the event that the Buyer fails to sell in the Interventional Neurology Market in a given year
Deflectable Catheter Products with an aggregate Net Selling Price equal to the Mandatory Minimum
for the Interventional Neurology Market in such year, then, for the purposes of determining the
Earn-Out payment due only, the Buyer shall be deemed to have sold Deflectable Catheter Products in
the Interventional Neurology Market with an aggregate Net Selling Price equal to the Aggregate
Mandatory Minimum set forth above for the Interventional Neurology Market in such Year.
In connection with the foregoing, Buyer agrees to maintain adequate documentation and accounting
records for demonstration of compliance with Earn-Out payments and to make such records available
to Seller on Seller’s reasonable request. Buyer shall, upon written request of Seller, make such
records available for audit to an independent certified public accounting firm chosen and
compensated by Seller (provided that if such audit finds that there has been an under-calculation
of the Earnout Payment in excess of 5% (but in any event greater than $5,000), then such fees shall
instead be paid by Buyer). Seller may request such audit no more frequently than once per calendar
year; provided however, that if any substantial accounting irregularities or discrepancies are
found, then Seller may request additional audits relating to the year during which the
irregularities or discrepancies occurred.
***
Confidential Treatment Requested
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3.1 Of Seller. Except as set forth on the Disclosure Schedule attached hereto as
Exhibit D, Seller hereby represents and warrants to Buyer as follows:
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(j) No Infringement Other than necessary regulatory approvals, Seller has all rights
necessary (and after the Closing as herein contemplated, Buyer will have all rights necessary) to
use, manufacture, and sell the Deflectable Catheter Products, and the use, manufacture, or sale of
the Deflectable Catheter Products, does not, and will not infringe or misappropriate the
intellectual property of any third party. Seller has not received notice of, and is not otherwise
aware of, any existing infringement or misappropriation claim of any third party with respect to
the use, manufacture, and sale of the Deflectable Catheter Products. It will be necessary for
Micrus to complete development of the Assets as contemplated in the Specifications in order to
manufacture or have manufactured and sell or have sold (subject to regulatory approvals)
Deflectable Catheter Products.
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manner the use, transfer, or licensing thereof or may affect the validity, use, or
enforceability of such Intellectual Property.
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3.2 Of Buyer. Buyer hereby represents and warrants to Seller as follows:
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4.1 Representations and Warranties Correct. Each of the representations and
warranties made by Seller in Section 3.1 hereof shall be true and correct in all material respects
as of the Closing Date, except as set forth on the Disclosure Schedule dated as of the Closing
Date, a copy of which shall has been delivered by Seller to Buyer on the Closing Date and accepted
by Buyer in Buyer’s sole discretion.
4.2 Assignment. Buyer shall have received the Assignment in the form attached hereto
as Exhibit A executed by Seller in the presence of a notary public evidencing prima facie
evidence that Seller has made a bona fide assignment of the Assets to Buyer, as contemplated
herein.
4.3 Intellectual Property Documents. Buyer shall have received, to its satisfaction,
all of the Intellectual Property Documents.
4.4 Noncompete Agreement. The Seller and each of Xxxx Xxxxxxxx, Xxxxxxx
Xxxxxx, and Xxxx-Xxxx Xxxxxx shall have signed and delivered a Noncompetition Agreement in the form
attached as Exhibit E.
4.5 Consulting Agreement. Each of Xxxxxxx Xxxxxx and Xxxx-Xxxx Xxxxxx (the
“Consultants”) shall have signed and delivered a Consulting Agreement to Buyer in the form attached
as Exhibit F.
5.1 Transfer Taxes.
(a) Seller shall be liable for and pay all applicable sales, documentary, recording, filing,
and transfer taxes payable as a result of the consummation of the transactions contemplated by this
Agreement.
(b) In accordance with California Sales and Use Tax Regulation 1507, the parties hereto agree
that the portion of the Purchase Price allocable to the Intellectual
Property Documentation is $300 and that such amount represents a
reasonable fair market value of such tangible personal property.
5.2 Retained Liabilities. Seller shall continue to assume, pay, and be responsible
for, any and all of its liabilities, obligations, or otherwise that accrued, arose, or related to
the Assets before the Closing Date, except the Assumed Liabilities, as set forth on Exhibit
C, where failure to do so could adversely impact the Buyer or the Assets. Without limiting the
generality of the foregoing, Seller shall timely file all tax returns and shall timely pay all
Taxes owing by it
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if failure to do so could adversely impact Buyer (including, without limitation,
Taxes contemplated by Section 5.1 and any and all employment withholding for all periods prior to
and through the Closing Date).
Should Buyer have failed within three years following the Closing Date to sell to any third party a
Deflectable Catheter Product approved for use in the Interventional Radiology Market or
Interventional Cardiology Market, then, with respect only to such of those Markets as the Buyer
shall have failed to commercialize such Deflectable Catheter Product, the Buyer shall exclusively
license the Intellectual Property together with any improvements thereto (excluding Know-How
developed by or for Micrus prior to or after the Closing Date) to Vascular FX, in such Market or
Markets in which the Buyer has failed to commercialize the Deflectable Catheter Product. For the
purposes of this Section 6(b), Buyer shall be deemed to have commercialized the Deflectable
Catheter Product for use in a given Market when it has sold to in a one-month period to
non-affiliated third parties at least [***] worth of Deflectable Catheter Products for use in
such Market. Such exclusive license shall be irrevocable, perpetual, sublicensable, transferable,
and worldwide, shall provide that Micrus shall own all improvements to the licensed technology
(excluding Know-How) made by any licensees or sublicensees and for reasonable further assurances
related to such ownership. To give effect to such license, the parties hereby agree in the event
that the conditions set forth in this section 6(b) are met, to execute an exclusive license
agreement in the applicable market(s), consistent with the foregoing provisions and containing such
other standard and commercially reasonable provisions.
7.1 Survival of Representations and Warranties. The representations and warranties of
Seller in Section 3.1 shall survive for a period two years after the Closing Date, except for (a)
the representations and warranties of Seller under Section 3.1(j), which shall survive until the
end of the Earn-out Period, Seller’s representations and warranties related to Taxes, which shall
survive until the lapse of the applicable statute of limitation, and (c) fraud, which shall survive
as provided for in the applicable statute of limitations. No investigation, or knowledge acquired,
by Buyer or on behalf of Buyer with respect to any breach of any representation or warranty made by
Sellers or any other matter shall affect Buyer’s rights to indemnification pursuant to this Section
7.
7.2 Indemnification. Seller and each Member, jointly and severally, shall indemnify
and hold harmless Buyer, each direct and indirect subsidiary of Buyer and each of their officers,
directors, employees, agents, successors and assigns (“Buyer Indemnitees”) for any and all
liabilities, losses, damages, claims, costs and expenses, interest, awards, judgments and penalties
(including, without limitation, reasonable documented legal costs and expenses and interest on the
amount of any loss from the date suffered or incurred by Buyer Indemnitee) (a
***
Confidential Treatment Requested
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“Loss”) directly
arising out of, resulting from or caused by: (i) any breach or the inaccuracy of any of the
representations, warranties, covenants, or agreements in this Agreement made by Seller, (ii) all
liabilities or obligations, including, without limitation, those relating to taxes, (whether known
or unknown, accrued or not accrued, fixed or contingent) of Seller existing at Closing. Without
limiting the generality or effect of the foregoing, Seller shall indemnify, defend and hold
harmless Buyer and each of its Affiliates (as defined in Rule 501 under the Securities Act of 1933,
as amended) from and against any and all Loss resulting from or arising out of any of the
following:
(a) (i) any liability to any employee of Seller as of the Closing Date arising in connection
with their employment by Seller, including, without limitation, post-retirement health benefits, to
the extent not fully funded immediately prior to the Closing, and (ii) any severance or other
benefit payable to any Employee by reason of this Agreement or the transactions contemplated
hereby, including, without limitation, any stay bonus, golden parachute or other change-in-control
payment or benefit;
(b) Any claim or liability resulting from or in connection with Seller having failed to
obtain, prior to the Closing Date, the approval of its members for any of the transactions
contemplated by this Agreement or any other document contemplated herein; or
(c) Any claim or liability resulting from or in connection with Seller’s breach, prior to the
Closing Date, of any intellectual property rights of any third party.
(a) Whenever any Loss shall be asserted against or incurred by a Buyer Indemnitee (the
“Indemnified Party”), the Indemnified Party shall give written notice thereof (a “Claim”) to the
party or parties against whom indemnification is claimed hereunder (the “Indemnifying Party”). The
Indemnified Party shall furnish to the Indemnifying Party in reasonable detail such information as
the Indemnified Party may have with respect to the Claim (including in any case copies of any
summons, complaint or other pleading which may have been served on it and any written claim,
demand, invoice, billing or other document evidencing or asserting the same). To the extent not
prejudicial, the failure to give such notice shall not relieve the Indemnifying Party of its
indemnification obligations under this Agreement.
(b) If the Claim is based on a claim of a person that is not a party to this Agreement, the
Indemnifying Party shall, at its expense, undertake the defense of such Claim with attorneys of its
own choosing reasonably satisfactory to the Indemnified Party. In the event the Indemnifying
Party, within a reasonable time after receiving notice of a Claim from the Indemnified Party, fails
to defend the Claim, the Indemnified Party may, at the Indemnifying Party’s expense, undertake the
defense of the Claim and may compromise or settle the Claim, all for the account of the Indemnifying Party. After notice from the Indemnifying Party to the
Indemnified Party of its election to assume the defense of such Claim, the Indemnifying Party shall
not be liable to the Indemnified Party under this Section 7.4 for any legal expenses subsequently
incurred by the Indemnified Party in connection with the defense thereof, except for such expenses
incurred in connection with cooperation with, or at the request of, the Indemnifying Party;
provided, however, that the Indemnified Party shall have the right to employ
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counsel to represent
it if, in the Indemnified Party’s reasonable judgment, based upon the advice of counsel, it is
advisable, in light of the separate interests of the Indemnified Party and the Indemnifying Party,
for the Indemnified Party to be represented by separate counsel, and in that event the reasonable
fees and expenses of such separate counsel shall be paid by the Indemnifying Party.
(c) The Indemnifying Party shall not, except with the consent of the Indemnified Party, given
in its sole discretion, consent to entry of any judgment or enter into any settlement.
(d) Buyer shall have the right, but not the obligation, to set off from any amount (including
any Purchase Price payment of the Purchase Price, including milestone payments and Earnout
payments) for which Seller and/or the Buyers may be liable under this Section 7, provided that
Buyer has provided Seller with notice of any claim for indemnification, whether direct or from a
third party, prior to the date when such payment is due, until final resolution of such
indemnification claim, at which time Buyer will deliver any portion of such withheld amount not
used to pay indemnifiable Losses hereunder to the Sellers. Notwithstanding anything contained
herein, in the event Buyer elects to set-off against any amount payable hereunder and such amount
is insufficient to satisfy all claims, then Buyer may take any action or exercise any remedy
available to it by appropriate legal proceedings to collect same, subject to the limitations and
restrictions of this Section 7.
7.4 Exclusive Remedy; Limits on Indemnification. Except in the case of fraud, the
indemnification provisions set forth in Section 7.2 shall constitute the sole and exclusive remedy
of the Buyer or any of its Affiliates for the breach of any representation, warranty or covenant of
the Seller or any Member under this Agreement. The obligation of Seller and the Members to
indemnify Buyer or any of its Affiliates under this Agreement shall not be limited in time or
amount; provided that (a) the aggregate liability of Seller for claims made by Buyer and/or any of
its Affiliates arising from this Agreement shall not exceed 40% of the Purchase Price (provided
that the foregoing limitation shall not apply with respect to fraud, claims for Taxes, or Willful
Infringement (as hereinafter defined)), for which there is no cap on the liability of the Seller;
and (b) the aggregate liability of each Member for claims made by Buyer and/or any of its
Affiliates arising from this Agreement shall not exceed 40% of the distributions made by Seller to
such Member or such Member’s designees, except in the case of claims for Taxes, Willful
Infringement or fraud by Seller (with respect to which the aggregate liability of each Member under
this Agreement shall not exceed 100% of the distributions made by the Seller to such Member or such
Member’s designees) or fraud by such Member (for which there is no cap on the liability of such
Member). For purposes of this Section 7.4 “Willful Infringement” shall mean any judgment by a
court of competent jurisdiction (or the decision of an arbitrator in binding arbitration that is by
its terms binding upon the Seller) of willful infringement by Seller of intellectual property
rights of third parties.
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8.1 Waiver and Amendment. This Agreement may be amended by a writing signed by the
Buyer and Seller. Any waiver of any provision of this Agreement or of a party’s rights or remedies
under this Agreement must be in writing to be effective. Failure, neglect, or delay by a party to
enforce any provision of this Agreement or its rights or remedies at any time, will not be
construed as a waiver of such party’s rights under this Agreement and will not in any way affect
the validity of the whole or any part of this Agreement or prejudice such party’s right to take
subsequent action. No exercise or enforcement by either party of any right or remedy under this
Agreement will preclude the enforcement by such party of any other right or remedy under this
Agreement or that such party is entitled by law to enforce.
8.2 Nonassignment and Binding Agreement. Neither this Agreement nor any rights under
this Agreement may be assigned or otherwise transferred by either party, in whole or in part,
whether voluntarily or by operation of law, except in connection with a merger, acquisition, or
sale of all or substantially all of such party’s assets related to this Agreement. Subject to the
foregoing, this Agreement will be binding upon and will inure to the benefit of the parties and
their respective successors and assigns. This Section 8.2 shall not limit in any way Micrus’ right
to dispose of any or all of the Assets, provided however that prior to any transfer of the Assets
the transferee shall have agreed to pay the amounts required under Section 2.4(c) from the date of
the Assignment. Notwithstanding the foregoing, Seller may assign its right to receive payment
pursuant to the terms hereof to its Members.
8.4 Severability. If any term, condition, or provision in this Agreement is found to
be invalid, unlawful or unenforceable to any extent, the parties shall endeavor in good faith to
agree to such amendments that will preserve, as far as possible, the intentions expressed in this
Agreement. If the parties fail to agree on such an amendment, such invalid term, condition or
provision will be severed from the remaining terms, conditions and provisions, which will continue
to be valid and enforceable to the fullest extent permitted by law.
8.5 Integration. This Agreement, including the exhibits and schedules attached
hereto, contains the entire agreement of the parties with respect to the subject matter of this
Agreement and supersedes all previous communications, representations, understandings and
agreements, either oral or written, between the parties with respect to said subject matter. No
terms, provisions or conditions of any purchase order, acknowledgement or other business form that
either party may use in connection with the transactions contemplated by this Agreement will have
any effect on the rights, duties or obligations of the parties under, or otherwise modify, this Agreement, regardless of any failure of a receiving party to object to such terms,
provisions or conditions.
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8.6 Expenses. At the Closing, Buyer shall reimburse the reasonable transaction
related expenses of Seller in an amount not to exceed $30,000.
8.7 Governing Law. This Agreement will be interpreted and construed in accordance
with the laws of the State of California and the United States of America, without regard to
conflict of law principles.
8.8 Arbitration. Any dispute or claim arising out of, in relation to, or in
connection with this Agreement or the interpretation, making, performance, breach of termination
thereof, shall be finally settled by binding arbitration in Santa Xxxxx County under the Rules of
Commercial Arbitration of the American Arbitration Association by one arbitrator appointed in
accordance with said Rules. Judgment on the award rendered by the arbitrator may be entered in any
court having jurisdiction thereof. The arbitrator shall apply California law to the merits of any
dispute or claim, without reference to rules of conflicts of law.
Notwithstanding the foregoing, before appointment of the arbitrator and in exceptional
circumstances even thereafter, the parties may apply to any court of competent jurisdiction in
Santa Xxxxx County, California for a temporary restraining order, preliminary injunction, or other
interim or conservatory relief, as necessary, without breach of this arbitration agreement and
without any abridgment of the powers of the arbitrator.
The costs of the arbitration, including administrative, and arbitrators’ fees, shall be shared
equally by the parties. Each party shall bear the cost of its own attorneys’ fees and expert
witness fees. The arbitral proceedings and all pleadings and written evidence shall be in the
English language. Any written evidence originally in a language other than English shall be
submitted in English translation accompanied by the original or a true copy thereof.
8.9 Counterparts. This Agreement may be executed in counterparts, each of which so
executed will be deemed to be an original and such counterparts together will constitute one and
the same agreement.
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The parties have signed below to indicate their acceptance of the terms of this Agreement.
BUYER | SELLER | |||||||||
Micrus Endovascular Corporation | Vascular FX, LLC | |||||||||
By:
|
/s/ Xxxx X. Xxxxxxxx | By: | /s/ Xxxx Xxxxxxxx | |||||||
Xxxx X. Xxxxxxxx | Xxxx Xxxxxxxx | |||||||||
Chief Executive Officer | Managing Member | |||||||||
000 Xxxxxxx Xxxxxx | 0000 X. Xxxxxxxx Xx | |||||||||
Xxxxxxxxx, XX 00000 | Xxxxx 000 | |||||||||
Xxxx Xxxx, XX 00000 |
MEMBERS: |
||||
Print Name:
|
Xxxx Xxxxxxxx | |||
Signature:
|
/s/ Xxxx Xxxxxxxx | |||
Address:
|
000 Xxxxxx Xxx. | |||
Xxxx Xxxx, XX 00000 | ||||
Print Name:
|
Xxxxxxx Xxxxxx | |||
Signature:
|
/s/ Xxxxxxx Xxxxxx | |||
Address:
|
0000 Xxx Xxxxxx, X#000 | |||
Xxx Xxxxxxxxx, XX 00000 | ||||
Print Name:
|
Xxxxxxx Xxxxxx, President CCW | |||
Signature:
|
/s/ Xxxxxxx Xxxxxx | |||
Address:
|
0000 Xxxx Xxxxxxxx Xx. | |||
Xxxxx 000 | ||||
Xxxx Xxxx, XX 00000 |
EXHIBIT A
This Assignment (this “Assignment”) is effective as of ___, 200___(the
“Effective Date”) by and between Micrus Endovascular Corporation, a Delaware corporation
(“Assignee”), and Vascular FX, LLC, a Delaware limited liability company
(“Assignor”). All terms used herein shall have the same meanings set forth in the
Technology Acquisition Agreement (as defined below) unless otherwise stated herein.
Assignor does hereby sell, assign and transfer and agrees to sell, assign and transfer unto
Assignee or its designees, all of Assignor’s right, title and interest in and to:
(a) the patent applications and patents listed below, all divisions, continuations,
continuations-in-part, and substitutions thereof, all foreign patents and foreign patent
applications corresponding to the preceding applications not otherwise listed below, and all U.S.
and foreign patents issuing on any of the preceding applications not otherwise listed below,
including extensions, reissues, and re-examinations (the “Patents”):
Number | Date Issued | Entitled | ||
SEE ATTACHED |
(b) any Copyright in any original works of authorship fixed in any tangible medium of
expression as set forth in 17 U.S.C. Section 101 et. seq., or otherwise, relating to the
Deflectable Catheter Products not otherwise listed below, whether registered or unregistered,
including any applications for registration thereof, and any corresponding foreign Copyrights under
the laws of any jurisdiction, in each case, whether registered or unregistered, and any
applications for registration thereof, and moral rights under the laws of any jurisdiction relating
to the Deflectable Catheter Products not otherwise listed below (the “Copyrights”):
(c) any trademark, service xxxx, trade name, domain name, and the like, or other word, name,
symbol or device, or any combination thereof, used or intended to
be used to identify and distinguish the source or origin of Deflectable Catheter Products and
related services not otherwise listed below, and all registrations and applications therefor
throughout the world and all common law and other rights therein throughout the world related to
the Deflectable Catheter Products not otherwise listed below (the “Trademarks”):
(d) any inventions, invention disclosures, trade secrets, proprietary information,
manufacturing and construction methods, processes, procedures, and technology or other special
knowledge or information, however manifested, relating or unique to the Deflectable Catheter
Products (the “Know How”).
Assignor covenants that it is the sole owner and assignee and holder of record title to the
Patents, Copyrights, Trademarks, and Know How and that it has full power to make this Assignment.
Assignor further sells, assigns, transfers and conveys unto Assignee the entire right, title
and interest in and to any and all causes of action and rights or recovery for past infringement of
the Patents, Copyrights, Trademarks, and Know How herein assigned.
Assignor warrants unto the Assignee and further agrees that Assignor will, without demanding
any further consideration therefor, at the request and at the expense of the Assignee, do all
lawful and just acts including the execution and acknowledgment of instruments, that may be or
become necessary for assigning, sustaining, obtaining continuations thereof, or reissuing the
Patents, Copyrights, Trademarks, and Know How for maintaining and perfecting the Assignee’s right
to the Patents, Copyrights, and Trademarks, and Know How, particularly in cases of interference and
litigation.
Assignor also hereby authorizes the U.S. Commissioner of Patents and any other foreign,
international, or U.S. governmental authority or equivalent to issue any and all Patents,
Trademarks, and Copyrights that may be granted upon any of the applications referenced herein to
Assignee, as the assignee to the entire interest therein.
ASSIGNEE
|
ASSIGNOR | |||
MICRUS ENDOVASCULAR CORPORATION
|
VASCULAR FX, LLC |
By:
|
By: | |||||
Xxxx X. Xxxxxxxx | Xxxx Xxxxxxxx, Managing Member | |||||
Chief Executive Officer |
ATTEST:
By: |
||||||||
Title: |
||||||||
) | ||||||||
State of
|
) | ss. | ||||||
County of
|
) |
On this ___day of ___, 200_, before me the undersigned, a Notary Public in and for
the County and State aforesaid, personally appeared _______, who is
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to within instrument and acknowledged to me that he executed the same in
his authorized capacity and that by his signature on such instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.
WITNESS, my hand and official seal.
Signature |
My commission expires:
EXHIBIT B
PATENTS
USPN 6,482,221 entitled “Manipulatable delivery catheter for occlusive devices”
USPN 6,726,700 entitled “Manipulatable delivery catheter for occlusive devices”
USPN 6,793,667 entitled “Manipulatable delivery catheter for occlusive devices (II)”
USPAN 20020165571 entitled “Manipulatable delivery catheter for occlusive devices (II)”
USPAN 20050075661 entitled “Long nose manipulatable catheter”
EXHIBIT C
ASSUMED LIABILITIES
None
EXHIBIT D
DISCLOSURE SCHEDULE
No Disclosures
EXHIBIT E
FORM OF NON-COMPETITION AGREEMENT
FORM OF NON-COMPETITION AGREEMENT
THIS NON-COMPETITION AGREEMENT (the “Agreement”) is made as of the Effective Date (as
defined below) by and among Micrus Endovascular Corporation, a Delaware corporation
(“Buyer”), Vascular FX, LLC, a Delaware Limited Liability Company (“Seller”) and
each of Xxxx Xxxxxxxx, Xxxxxxx Xxxxxx, and Xxxx-Xxxx Xxxxxx (each a “Principal Member” and
together the “Principal Members”).
WHEREAS, concurrently with the execution of this Agreement, Buyer, Seller and the Principal
Members (together with the other members of Seller) have entered into an Technology Transfer
Agreement dated as of July ___, 2005 (the “Purchase Agreement”), providing for the purchase
by Buyer from Seller of certain intellectual property related to medical devices under development
by Seller and related goodwill.. Capitalized terms used and not otherwise defined herein shall
have the meaning as set forth in the Agreement.
WHEREAS, Seller’s principal place of business is in California and each Principal Member’s
primary place of employment with Seller is in California.
(a) Beginning on the Closing Date and ending on the fifth anniversary of the Closing Date (the
“Non-Competition Period”), neither Seller nor any Principal Member shall directly or
indirectly (other than on behalf of Buyer), without the prior written consent of Buyer, engage in a
Competitive Business Activity (as defined below) anywhere in the Restricted Territory (as defined
below). For all purposes hereof, the term “Business” shall mean the development, marketing and/or
sale of deflectable, steerable, or torquable catheters and/or guidewires in the Ineteventional
Neurology Market, Interventional Cardiology Market, and Interventional Radiology Market, and
“Competitive Business Activity” shall mean: (i) engaging in, or managing or directing
persons engaged in any business related to the Business; (ii) acquiring or having an ownership
interest in any entity which derives revenues from any business related to the Business (except for
ownership of one percent (1%) or less of any entity whose securities have been registered under the
Securities Act of 1933, as amended, or Section 12 of the Securities Exchange Act of 1934, as
amended); or (iii) participating in the financing, operation, management or control of any firm,
partnership, corporation, entity or business described in clause (ii) of this sentence. For all
purposes
hereof, the term “Restricted Territory” shall mean each and every country,
province, state, city or other political subdivision of the world in which Buyer is currently
engaged in business or otherwise distributes, licenses or sells its products. Micrus will not unreasonably withhold its consent to the
Seller’s or any Principal Member’s engagement in a business activity involving catheters and/or
guidewires that do not compete with products sold or under development by Micrus.
(b) During the Non-Competition Period, neither Seller nor any Principal Member shall directly
or indirectly solicit, encourage or take any other action which is intended to induce or encourage,
or has the effect of inducing of encouraging, any employee or consultant of Buyer or any of its
subsidiaries to terminate his or her employment or consulting relationship with such company.
(c) The covenants contained in Section 1(a) hereof shall be construed as a series of separate
covenants, one for each country, province, state, city or other political subdivision of the
Restricted Territory. Except for geographic coverage, each such separate covenant shall be deemed
identical in terms to the covenant contained in Section 1(a) hereof. If, in any judicial
proceeding, a court refuses to enforce any of such separate covenants (or any part thereof), then
such unenforceable covenant (or such part) shall be eliminated from this Agreement to the extent
necessary to permit the remaining separate covenants (or portions thereof) to be enforced. In the
event that the provisions of this Section 1 are deemed to exceed the time, geographic or scope
limitations permitted by applicable law, then such provisions shall be reformed to the maximum
time, geographic or scope limitations, as the case may be, permitted by applicable laws.
(d) Seller and each Principal Member acknowledge that (i) the goodwill associated with the
Business prior to the transaction contemplated hereby are an integral component of the value of the
Business to Buyer, and (ii) Seller’s and each Principal Member’s agreement as set forth herein is
necessary to preserve the value of Business following the transaction contemplated hereby. Seller
and each Principal Member also acknowledge that the limitations of time, geography and scope of
activity agreed to in this Agreement are reasonable because, among other things, (A) Seller and
Buyer are engaged in a highly competitive industry, (B) Seller and each Principal Member have
unique access to, and will continue to have access to, the trade secrets and know-how of Business
and Buyer, including, without limitation, the plans and strategy (and, in particular, the
competitive strategy) of Seller, and (C) in the event any Principal Member’s employment or
consulting relationship with Seller and/or Buyer ended, such Principal Member would be able to
obtain suitable and satisfactory employment without violation of this Agreement.
(e) Each Principal Member’s obligations under this Agreement shall remain in effect for the
duration of the Non-Competition Period if such Principal Member’s employment with Seller or
consulting relationship with Buyer is terminated for any reason.
(f) Notwithstanding the foregoing, Buyer agrees that, in the event Seller acquires a licenses
pursuant to Section 6 of the Technology Transfer Agreement in the Interventional Cardiologiy Market
and/or the Interventional Radiology Market, Buyer shall be deemed to have waived the provisions of
Section 1(a) to the extent necessary to permit Seller or any Principal Member to develop, market
and/or sell products under such license as an employee, consultant, or
owner of Seller, Principal
Member, or any entity controlled by Seller or one or more Principal Member(s) that is a transferee
or sublicensee of such rights. This Section (f) shall not be construed to permit any Seller or
Principal Member to provide services for any person or entity that is a Competitive Business Entity
or an affiliate thereof, except for Seller, any Principal Member, or an entity controlled by Seller or one or more Principal Member(s), and only to the extent
necessary to exercise rights under such license(s).
(a) The parties agree that any dispute or controversy arising out of, relating to, or in
connection with this Agreement, or the interpretation, validity, construction, performance, breach,
or termination thereof, shall be settled by binding arbitration to be held in Santa Xxxxx County,
California in accordance with the American Arbitration Association Commercial Arbitration Rules
(the “Rules”). Such dispute or controversy shall be settled by arbitration conducted by
one arbitrator mutually agreeable to Buyer and Seller. In the event that, within forty-five (45)
days after submission of any dispute to arbitration, Buyer and Seller cannot mutually agree on one
arbitrator, Buyer and Seller shall each select one arbitrator, and the two arbitrators so selected
shall select a third arbitrator. The decision of the arbitrator or a majority of the three
arbitrators, as the case may be, shall be final, binding and conclusive upon the parties to the
arbitration. Judgment may be entered on the arbitrator(s)’ decision in any court having
jurisdiction.
(b) At the request of either party, the arbitrator(s) will enter an appropriate protective
order to maintain the confidentiality of information produced or exchanged in the course of the
arbitration proceedings.
(c) The arbitrator(s) shall apply California law to the merits of any dispute or claim,
without reference to rules of conflicts of law.
(d) The parties agree that it would be impossible or inadequate to measure and calculate the
other party’s damages from any breach of the covenants set forth in this Agreement. Accordingly,
each party agrees that if it breaches any provision of this Agreement, the other party will have
available, in addition to any other right or remedy otherwise available, the right to injunctive
relief restraining such breach or threatened breach and to specific performance of any such
provision of this Agreement.
(e) Either party may apply to any court of competent jurisdiction for a temporary restraining
order, preliminary injunction or other interim or conservatory relief, as necessary, without breach
of this arbitration agreement and without any abridgment of the powers of the arbitrator(s).
(f) SELLER AND EACH PRINCIPAL MEMBER HAVE READ AND UNDERSTAND THIS SECTION 2, WHICH DISCUSSES
ARBITRATION. SELLER AND EACH PRINCIPAL MEMBER UNDERSTAND THAT BY SIGNING THIS AGREEMENT, SELLER
AGREES AND EACH PRINCIPAL MEMBER AGREE, EXCEPT AS SET FORTH IN SECTION 2(d) AND SECTION 2(e)
ABOVE, TO SUBMIT ANY CLAIMS ARISING OUT OF,
RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR
THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO BINDING
ARBITRATION, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF SELLER’S AND EACH PRINCIPAL
MEMBER’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES ARISING OUT OF, RELATING TO OR IN
CONNECTION WITH THIS AGREEMENT.
(a) Governing Law; Consent to Personal Jurisdiction. This Agreement shall be governed
by the laws of the State of California without reference to rules of conflicts of law. Seller and
each Principal Member hereby consent to the personal jurisdiction of the state and federal courts
located in California for any action or proceeding arising from or relating to this Agreement or
relating to any arbitration in which the parties are participants.
(i) | if to Buyer, to: | |||
|
||||
|
||||
Attn: | ||||
Telephone No.: | ||||
Facsimile No.: | ||||
with a copy to: | ||||
Xxxxxxxxxx Law Group, LLP | ||||
000 Xxxxxxxxxxx Xxxx, Xxxxx 000 | ||||
Xxxxx Xxxx, XX 00000 |
Attention: Xxxxxxx X. Xxxxxxxx, Esq. | ||||
Telephone No. (000) 000-0000 | ||||
Fax No. (000) 000-0000 | ||||
(ii) | if to Seller, to: |
|||
|
||||
|
||||
Attn: | ||||
Telephone No.: | ||||
Facsimile No.: |
||||
with a copy to: |
||||
Xxxxxx Xxxxxxx Xxxxxxxx & Xxxxxx | ||||
Professional Corporation | ||||
000 Xxxx Xxxx Xxxx | ||||
Xxxx Xxxx, Xxxxxxxxxx 00000 | ||||
Attn: Xxxxxx Xxxx, Esq. | ||||
Telephone No.: (000) 000-0000 | ||||
Facsimile No.: (000) 000-0000 |
(iii) if to any Principal Member, at the address for such Principal Member set forth on the
signature page hereto.
(Remainder of page intentionally left blank.)
MICRUS | ENDOVASCULAR | |||
CORPORATION |
||||
By: | ||||
Title: | ||||
VASCULAR FX, LLC |
||||
By: |
||||
Title: |
||||
PRINCIPAL MEMBERS: | ||||
Print Name: | ||||
Signature: | ||||
Address: | ||||
|
||||
|
EXHIBIT F
FORM OF CONSULTING AGREEMENT
This Consulting Agreement (“Agreement”) is made and entered into as of the ___th day of July,
2005 (“Effective Date”), by and between Micrus Endovascular Corporation, a Delaware corporation
(the “Company”), and ___(“Consultant”), an individual. Consultant is a principal member
of Vascular FX, LLC (“Seller”), and this Agreement is entered pursuant to a Technology Transfer
Agreement between the Company, Seller, and the members of Seller (including Consultant).
1.1 The Company hereby retains Consultant and Consultant agrees to perform for the Company
the services described in Exhibit A (“Services”). The parties may amend Exhibit A
at any time to reflect the development and/or production needs of the Company. Consultant will
keep the Company advised as to Consultant’s progress in performing the Services and will, as
reasonably requested by the Company from time to time, promptly prepare written notes and/or
reports regarding such progress. In performing the Services, Consultant agrees not to use any
software that is available via an open source license unless the Company agrees in writing to such
use.
1.2 The Company agrees to pay Consultant fees as set forth in Exhibit B for the
performance of the Services (the “Fees”).
2.1 “Confidential Information” means any proprietary information, technical data, trade
secrets or know-how, including research, product ideas, product plans, products, services,
customers, customer lists, markets, software, developments, inventions, recipes, processes,
formulas, technology, designs, drawings, hardware configuration information, marketing, finances or
other business information disclosed by the Company or the Company’s agents and/or affiliates,
either directly or indirectly in writing, orally or by drawings or inspection of parts, equipment
or other tangible materials. Confidential Information does not include information which (i) is
known to Consultant, without any obligation of confidentiality, at the time of disclosure by the
Company as evidenced by written records of Consultant, (ii) has become publicly known and made
generally available through no wrongful act or non-act of Consultant, or (iii) has been rightfully
received by Consultant from a third party who is authorized to make such disclosure.
2.2 Consultant recognizes and acknowledges that in the course of performing the Services,
Consultant will have access to Confidential Information. Consultant will not use Confidential
Information for any purpose whatsoever other than the performance of the Services on behalf of the
Company or disclose the Company’s Confidential Information to any third party. The Confidential
Information shall remain the sole property of the Company. Consultant
further agrees to take all reasonable precautions to prevent any unauthorized disclosure of such
Confidential Information. Without the Company’s prior written approval, Consultant will not
directly or indirectly disclose to anyone the existence of this Agreement or the fact that
Consultant has this arrangement with the Company.
2.3 Consultant will not, during the term of this Agreement, (i) improperly use or disclose
any proprietary information or trade secrets of any former or current employer or other person or
entity which Consultant is obligated to keep confidential; or (ii) improperly use work time or
facilities of a current employer to do any work related to the performance of the Services.
Consultant will indemnify the Company and hold it free and harmless from and against all claims,
liabilities, damages and expenses, including reasonable attorneys fees and costs of suit, arising
out of or in connection with any violation or claimed violation of a third party’s rights resulting
in whole or in part from the Company’s use of the work product of Consultant under this Agreement.
2.4 Consultant recognizes that the Company may from time to time receive confidential or
proprietary information from third parties. Consultant is obligated to the Company and such third
parties, to hold all such confidential or proprietary information in the strictest confidence and
not to disclose it to any person, firm or corporation or to use it except as necessary in carrying
out the Services for the Company consistent with the Company’s agreement with such third party.
2.5 Upon the termination of this Agreement, or upon Company’s earlier request, Consultant
will promptly deliver to the Company all of the Company’s property and Confidential Information in
tangible form in Consultant’s possession or control.
3.1 Consultant agrees that all copyrightable works, notes, records, drawings, designs,
recipes, compositions, inventions (whether patentable or not), improvements, developments,
discoveries and trade secrets (collectively, “Works”) conceived, made or discovered by Consultant,
either solely or in collaboration with others and either on or off the Company’s premises, in
performance of Services under this Agreement, are the sole property of the Company. Any Works that
constitute copyrightable subject matter shall be considered a work made for hire under the United
States Copyright Act or any other applicable law. Notwithstanding the foregoing, Consultant
further hereby assigns fully to the Company all right, title and interest in such Works and any
copyrights, patents, mask work rights or other intellectual property rights relating to such Works.
3.2 Consultant agrees to assist Company, or its designee, at the Company’s expense, to secure
the Company’s rights in the Works and any copyrights, patents, mask work rights or other
intellectual property rights relating to such Works, in any and all countries. Consultant’s
obligations under this Section may include disclosing to the Company all pertinent information and
data with respect the Works, executing all applications, specifications, oaths, assignments and all
other instruments which the Company deems necessary in order to obtain
such rights and to assign to the Company, its successors, assigns and nominees the sole and
exclusive rights, title and interest in and to such Works, and any copyrights, patents, mask work
rights or other intellectual property rights relating to such Works. In the event that Consultant
fails to execute any such instruments within a reasonable time, Consultant hereby irrevocably
appoints the Company and its duly authorized officers and agents as Consultant’s agent and attorney
in fact to execute any such instruments and take all other action necessary to effectuate the
intent of this Section.
3.3 Except as set forth on Exhibit C, if in the course of performing the Services,
Consultant incorporates into any Work developed hereunder any invention, improvement, development,
concept, discovery or other proprietary information owned by Consultant or in which Consultant has
an interest, the Company is hereby granted a nonexclusive, royalty-free, irrevocable, worldwide,
perpetual license to make, have made, modify, use and sell such items as part of or in connection
with such Work.
4.1 Consultant represents and certifies that Consultant has no outstanding agreement or
obligation that is in conflict with any of the provisions of this Agreement and Consultant will not
enter into any such conflicting agreement during the term of this Agreement. Consultant further
agrees not to engage in any other employment, consulting or business activity with any company
engaged in sales, marketing, development and/or design of microcoils for the treatment of aneurysms
or in the Business, as defined in the Noncompetition Agreement of even date herewith between the
Company, Seller and the principal members of Seller (including Consultant) (the “Noncompetition
Agreement”). The provisions of this Section 4.1 are in addition to, and do not limit, the
obligations of Consultant under the Noncompetition Agreement.
4.2 Consultant represents and certifies that no third party, including any present or former
employer of Consultant, has (or will have) any right in or to any and all Works developed
hereunder.
5.1 This Agreement will commence on the Effective Date and will continue until final
completion of the Services or until terminated.
5.2 Either party may terminate this Agreement at any time by giving 15 days written notice to
the other party, provided that Consultant agrees that it will not terminate this
Agreement without cause prior to the first anniversary of the Closing Date (as defined in the
Technology Transfer Agreement). Consultant shall be deemed to have cause of termination only if
Company breaches this Agreement and fails to remedy such breach within 30 days of receiving written
notice of breach from Company.
5.3 Upon such termination all rights and duties of the parties toward each other shall cease
except:
(a) the Company shall be obligated to pay, within 30 days after termination, all amounts
owing to Consultant for Services performed and related expenses, if any, up to the date of
termination; and
(b) Sections 2 (Confidentiality), 3 (Ownership), and 6-12 (General Provisions) shall survive
termination of this Agreement.
that Consultant is not an independent contractor. Consultant shall bear all expenses
associated with performing the Services except as expressly provided on Exhibit B of this
Agreement. Nothing herein or in the performance hereof shall imply a joint venture, partnership,
or principal and agent relationship between the parties. Neither party shall have any right,
power, or authority to create any obligation, express or implied, on behalf of the other.
CONSULTANT
|
MICRUS CORPORATION | |
By: | ||
[name]
|
Xxxx X. Xxxxxxxx, CEO | |
Address:
|
Address: 000 Xxxxxxx Xxxxxx Xxxxxxxxx, XX 00000 |
EXHIBIT A
SERVICES — TIME BASIS
(1.) | Contact. Consultant’s principal Company contact: | |
(2.) | Services. Consultant will render the following Services to the Company: |
EXHIBIT B
(1.) | Services. Consultant shall perform the Services described in Exhibit A and as shall further be described to Consultant by the Contact named on Exhibit A and such Contact shall serve as Consultant’s supervisor with regard to the services and work. | |
(2.) | Compensation. As consideration for all Services to be rendered and performed under the Agreement and for assigning the rights to the Company set forth in Section 3 of the Agreement, Company shall pay Consultant a per hour fee of ___as compensation in full (the “Payment Amount”). The Payment Amount shall be paid to the Consultant within 30 days of the satisfactory completion of the Services, as determined by the Company pursuant to paragraph 3, below. | |
(3.) | Invoices. Consultant shall submit a statement for Services in a form prescribed by the Company. Invoices should be submitted every other week for the hours and approved expenses incurred during the preceding two week period. Upon receipt of the statement for Services, the Company, in its sole discretion, shall have the right to determine whether the Services have been completed satisfactorily. The Company’s determination that the Services have been completed satisfactorily shall not be unreasonably withheld. |
EXHIBIT C
Title
|
Date | Identifying Number or Brief Description |
||
__ All incorporated works licensed
__ Additional sheets attached
Signature of Consultant:
|
||
Printed Name of Consultant:
|
||
Date:
|
||
EXHIBIT D
CALIFORNIA LABOR CODE SECTION 2870
“(a) Any provision in an employment agreement which provides that an employee shall assign,
or offer to assign, any of his or her rights in an invention to his or her employer shall not apply
to an invention that the employee developed entirely on his or her own time without using the
employer’s equipment, supplies, facilities, or trade secret information except for those inventions
that either:
(1) Relate at the time of conception or reduction to practice of the invention to the
employer’s business, or actual or demonstrably anticipated research or development of the employer.
(2) Result from any work performed by the employee for the employer.
(b) To the extent a provision in an employment agreement purports to require an employee to
assign an invention otherwise excluded from being required to be assigned under subdivision (a),
the provision is against the public policy of this state and is unenforceable.”