INTERNATIONAL LICENSE
AGREEMENT
THIS INTERNATIONAL LICENSE AGREEMENT (“
Agreement ”) is made as of this day of ______, 2006,
("Effective Date") by and between NanoLogix, Inc., a Delaware
corporation having a place of business at 87 Stambaugh Avenue,
Suite 2, Sharon, Pennsylvania 16146 (“ Licensor
”), and Nutra Pharma Corp., a California corporation having a
place of business at 3473 High Ridge Road, Boynton Beach, Florida
33426 (“ Licensee ”) (each, a “
Party ” and together, the “ Parties
”).
WHEREAS, Licensor is the owner of certain
Licensed Patents, Licensed Technology and trade secrets;
WHEREAS, Licensee desires to acquire a license
for use of the Licensed Technology in the development,
commercialization and sale of the Licensed Products within the
Field of Use (as defined below), both domestically and
internationally; and
WHEREAS, Licensor has the power and authority to
grant Licensee such a license domestically and in certain
countries;
NOW, THEREFORE, in consideration of the payments
made and to be made to Licensor by Licensee and the mutual promises
and covenants contained herein and other good and valuable
consideration, the sufficiency of which is hereby acknowledged, the
Parties, intending to be legally bound, hereby agree as
follows:
As used in this Agreement, the following terms
and variations thereof shall have the meanings below:
1.1 “ Affiliate ” and “
Affiliates ” mean any individual, corporation,
subsidiary, affiliate, partnership, association, business,
organization or other entity that, directly or indirectly through
one or more intermediaries, controls, or is controlled by, or is
under common control with, a Party and/or such entities. The term
“control” (including the terms
“controlling,” “controlled by” and
“under common control with”) means the possession,
direct or indirect, of the power to direct or cause the direction
of the management or policies of an individual or entity, whether
through the ownership of voting shares, by contract or
otherwise.
1.2 “ Agreement ” has the meaning
set forth in the preface to this Agreement.
1.3 “ Bankruptcy Code ” means the
Bankruptcy Code of the United States, as amended.
1.4 “ Buffer Products " means certain
of Licensor's products utilizing Licensor's trade secrets,
including "AFZ", the "Adaptor Buffer" and other related
formulas.
1.5 “ Calendar Quarter ” means
each of the three-month periods ending March 31, June 30, September
30 and December 31 in any given calendar year.
1.6 " Calendar Year " means the 12-month
period beginning January 1 and ending on December 31 in any given
calendar year.
1.7 “ Effective Date ” has the
meaning set forth in the preface to this Agreement.
1.8 “ Field of Use ” with regard
to the Licensed Technology, Licensed Patent(s) and Licensed
Product(s) means the detection and identification of human and
veterinary identification of Atypical Mycobacteria, Tuberculosis,
Mycobacterium Avium Intracellulare (MAI), Mycobacteria,
Paratuberculosis, Nocardia and Pseudomonas for disease
identification, and antibiotic assaying (but such assaying does not
include antibiotic assaying when those antibiotics or compounds are
derived from by-products obtained through growing microorganisms
using Licensor’s IP) for determining the antimicrobial agent
sensitivity of microorganisms to ascertain which antibiotics are
efficacious against microorganisms in the field of health which may
lead to drug discoveries; and excludes any other uses, including
any use reserved for the Licensor as specified in the Realm of Use,
and excludes kits for any other uses, which uses or kits are
reserved to Licensor, including but not limited to uses, kits, or
bioreactors pertaining to bioremediation, apoptosis,
nanotechnology, biomems, microfluidic devices, the production of
hydrogen and the identification and growing of over 32 different
paraffin-eating and non-paraffin eating microorganisms to collect
any microbial by-products of any kind, including antibiotics (all
of which fall under the Realm of Use of the Licensor). Further, the
Field of Use does not include any industrial use of the Licensed
Technology, Licensed Patent(s) and Licensed Product(s). Whereas the
Field of Use and the Realm of Use both provide for certain uses
within the area of health, the Licensee, with regard to the
Licensed Technology, Licensed Patent(s) and Licensed Product(s) is
limited to only the uses within the areas of health that are
specified in the Field of Use.
1.9 “ Force Majeure Event ” has
the meaning set forth in Section 13.12.
1.10 “ Gross Sales Price ” means
the greater of the gross sales price actually invoiced or collected
by Licensee for Products sold by Licensee or any Affiliate of
Licensee, less all returns and credits, of such gross sales
price.
1.11
"Intellectual Property
" or " IP " means any and all
copyrights, patents, patent applications, trademarks, or trade
secrets protectable by law from which the party asserting ownership
has the right to prevent others in its use, or require payment for
its use.
1.12 “ License ” or “
Licensed ” has the meaning set forth in Section
3.1.
1.13 “ Licensed Patents ” means
only those Patents set forth in Exhibit A and does not include any
of the Licensor’s Patents nor any other of Licensor's
Intellectual Property not explicitly listed on Exhibit A as
Licensed Patents.
1.14 “ Licensed Product ” and
“ Licensed Products ” mean those products,
including the Medical diagnostic kits and Buffer Products, as set
forth on Exhibit B and incorporating one or more claims made in the
Licensed Patents or incorporating other Intellectual Property
belonging to Licensor. Licensed Products do not include products
derived from any of the Licensor’s patents which are not
listed on Exhibit A as Licensed Patents, except as otherwise
expressly provided herein. Further, Licensed Products do not
include products derived from any of Licensor’s currently
pursued provisional, pending patents, and continuation patents,
which remain the exclusive property of Licensor.
1.15 “ Licensed Technology ” means
the Licensed Patents and Licensed Products and technology limited
to the Field of Use described herein, or improvements developed by
Licensee in connection with, related to, arising from, used in the
making of and/or embodied in the Products and Patents listed in
this Agreement, and such Licensed Technology, which covers human
medical and veterinary products designed to identify 32 different
paraffin eating microorganisms or which cover human medical and
veterinary products designed for determining antimicrobial agent
sensitivity, and are to be solely used by the Licensee for the
detection and identification of human and veterinary identification
of Atypical Mycobacteria, Tuberculosis, Mycobacterium Avium
Intracellulare (MAI), Mycobacteria, Paratuberculosis, Nocardia and
Pseudomonas for disease identification and for antimicrobial agent
sensitivity assaying which may result in drug discovery
applications, during the Term hereof. Licensed Technology does not
include technology derived from any of the Licensor’s patents
which are not listed on Exhibit A as Licensed Patents. Further,
Licensed Technology does not include technology of Licensor's IP
derived from any of Licensor’s currently pursued provisional,
pending patents, and continuation patents, which remain the
exclusive property of Licensor.
1.16 “ Licensee ” has the meaning
set forth in the preface to this Agreement.
1.17 “ Licensor ” has the meaning
set forth in the preface to this Agreement.
1.18 “ Licensee Indemnitees ” has
the meaning set forth in Section 12.1.
1.19 “ Party ” and “
Parties ” have the meaning set forth in the preface to
this Agreement.
1.20 “ Patent Rights ” shall mean
(i) unexpired letters patent which have not been held invalid or
unenforceable by a court of competent jurisdiction from which no
appeal can be taken or has been taken within the required time
period, including without limitation any substitution, extension,
registration, confirmation, reissue, re-examination, renewal,
supplementary protection certificate or any like filing thereof and
(ii) pending applications for letters patent, including without
limitation any provisional, converted provisional, continued
prosecution application, continuation, divisional or
continuation-in-part thereof together with all know-how owned,
created and/or developed by Licensor in whole or in
part.
1.21 “ Person ” means any
individual, governmental authority, corporation, limited liability
company, partnership, trust or other entity.
1.22 “ Realm of Use ” with regard
to the Licensors use of the Licensed Technology, Licensed Patent(s)
and Licensed Product(s) means the use of the
licensed technology, licensed patents and licensed products for all
uses, including but not limited to (a) hydrogen
production applications (b) augmenting growth of microorganisms to
collect any microbial by-products, including but not limited to
hydrogen, antibiotics, or any chemical synthesis (c) bioremediation
(d) apoptosis (e) nanotechnology, (f) biomems, for
all uses, including but not limited to medical uses, (g)
microfluidic devices, for all uses, including but not limited to
medical uses, (h) identification and detection of over 32 different
paraffin-eating and non-paraffin-eating microorganisms, other than
for the identification of Atypical Mycobacteria, Tuberculosis,
Mycobacterium Avium Intracellulare (MAI), Mycobacteria,
Paratuberculosis, Nocardia and Pseudomonas for disease diagnosis
(unless associated with biomems, microfluidic devices, or
nanotechnology),(i) testing for antimicrobial agent sensitivity of
microorganisms included but not limited to using such technology
for controlling growth of undesirable microorganisms in a
bioreactor and using such technology to test the efficacy of
antibiotic compounds or other compounds which may be collected as
by-products from using the Licensed Technology to identify and grow
microorganisms and (j) any industrial use whatsoever; but excludes
using the Licensed Technology, Licensed Patent(s) and Licensed
Product(s) for (a) the detection and identification of human and
veterinary identification of Atypical Mycobacteria, Tuberculosis,
Mycobacterium Avium Intracellulare (MAI), Mycobacteria,
Paratuberculosis, Nocardia and Pseudomonas for disease
identification test kits (unless associated with biomems,
microfluidic devices, or nanotechnology) and (b)selling test kits
or providing diagnostic services in the field of health for
determining the antimicrobial agent sensitivity of microorganisms
to ascertain which antibiotics are efficacious against
microorganisms in the field of health diagnosis (unless associated
with biomems, microfluidic devices, or nanotechnology). Whereas the
Field of Use and the Realm of Use both provide for certain uses
within the area of health, the Licensee, with regard to the
Licensed Technology, Licensed Patent(s) and Licensed Product(s) is
limited to only the uses within the areas of health that are
specified in the Field of Use.
1.23 “ Robinson-Patman Act ” means
the Robinson-Patman Antidiscrimination Act, as amended.
1.24 “ Royalty Fee ” and “
Royalty Fees ” mean the fees paid to Licensor by
Licensee for the License.
1.25 “ Exclusive License ” means
the Licensor undertakes not to grant the right to use the
intellectual property hereby leased to Licensee within the Field of
Use to any other licensee but Licensor reserves to right to use
Licensor’s intellectual property hereby leased to Licensee
for any use within the Realm of Use.
1.26 “ Sublicense ” means
a license giving rights of production or marketing of products
or services, given by the Licensee to a person or company that is
not the primary holder of such rights, which comprise rights to the
Licensed Patents, Licensed Technology and/or Licensed Products and
a “Sublicensee” shall mean any person, company or other
legal entity other than Licensee who has been granted by Licensee a
Sublicense to the rights to the Licensed Patents, Licensed
Technology and/or Licensed Products to make, use or sell the
Licensed Product or Licensed Technology.
1.27 “ Term ” has the meaning set
forth in Section 2.1.
1.28 “ Third Party ” and “
Third Parties ” mean one or more persons or entities
other than Licensor, Licensee or their respective
Affiliates.
1.29 “ United States ” means the
United States of America and its possessions and
territories.
2.
Effective Date and
Term .
2.1 This Agreement shall be effective when all of
the requirements and conditions provided under Section 13.19
Closing of Agreement and Conditions Thereto are met,
including but not limited to the transfer of 4,593,170 shares of
capital stock of Nanologix, Inc./Infectech, Inc to the Licensor and
the execution of the Patent Assignment Agreement, in which event,
this Agreement shall be effective as of the Effective Date recited
on page one of the Agreement as long as the Agreement has been
agreed upon and executed by the Parties and will continue in
perpetuity until the latest expiration date of any Licensed Patent,
or as long as Licensee sells any products within the Field of Use
based upon any of the Licensed Patents, Licensed Products and/or
Licensed Technology, whichever is later; or unless terminated
earlier as expressly provided in this Agreement.
3.
Exclusive License within
Field of Use.
3.1 Beginning on the Effective Date, Licensor hereby
grants to Licensee an Exclusive License for the use of the Licensed
Patents listed on Exhibit A limited to use within the Field of Use,
with domestic and worldwide royalty-bearing license rights (“
License ”), limited to the United States and those
countries for which Licensor has obtained patent protection, which
is further limited to unexpired letters patent which have not been
held invalid or unenforceable by a court of competent jurisdiction
from which no appeal can be taken or has been taken within the
required time period, and such rights further limited to the Field
of Use, and to the following:
(a) to make, have made, use, sell, import and
sublicense the Licensed Technology solely within the Field of Use
for the purposes of manufacturing, assembling, distributing,
leasing, renting, performing research, and selling the Licensed
Products solely within the Field of Use.
(b) sublicensing or subcontracting the manufacture,
assembly, distribution and sale of the Licensed Products solely to
be used within the Field of Use.
3.2 Licensor will continue to actively pursue
expansion of its patent protection internationally. As Licensor
secures these protections, the License described in Section 3.1
shall cover use of the specific Licensed Patents, Licensed
Products, and Licensed Technology in said countries, within the
Field of Use.
3.3 Licensor retains all rights related to the
Licensed Patents, Licensed Products, Licensed Technology, trade
secrets and referred to in this Agreement, as well as all other
Intellectual Property belonging to the Licensor, except as
expressly stated in Section 3.1. Licensor may, at any time and
without the consent of Licensee, assign or transfer its rights
related to any of the Licensed Patent(s), Licensed Product(s)
and/or Licensed Technology, for any use outside the Field of Use
and not otherwise inconsistent with this Agreement.
3.4 Upon Licensee’s request, Licensor shall
provide to Licensee copies of all reasonably related research,
documents, and notes possessed by Licensor, including, but not
limited to, the findings of Dr. Paul Hyman of Ohio State
University. Licensee shall keep such information confidential as
provided in Section 13.22 and elsewhere in this
agreement.
4.1 During the Term hereof, and in consideration of
the License set forth in Article 3, Licensee agrees to pay Licensor
a Royalty Fee which shall be equal to the greater of (a) the
Minimum Royalty Fee, as described in Section 4.2, or (b) six
percent (6%) of the Gross Sales Price of all products and/or
services sold by Licensee or any of its Affiliates based upon,
directly or indirectly, the Licensed Technology, Licensed
Patent(s), Licensed Product(s ) and/or any direct or
indirect utilization of trade secrets of the Licensor within the
Field of Use during the Term, and upon any products or services
sold by the Licensee within the Field of Use that are the result of
the improvement on or development of additional Intellectual
Property developed by the Licensee based upon the Licensed
Technology, Licensed Patent(s), Licensed Product(s), and/or trade
secrets of the Licensor, within the Field of Use, including all
products sold within the Field of Use that include modifications,
additions, enhancements and improvements to the Licensed Patents,
Licensed Products, Licensed Technology and/or trade secrets of the
Licensor.
4.2 Licensee shall pay to Licensor a Minimum
Royalty Fee of $20,000 in the first calendar year, $20,000 in the
second calendar year, $40,000 in the third calendar year, $80,000
in the fourth calendar year, and $160,000 in each calendar year
after that, through the termination of this Agreement. This Minimum
Royalty Fee due under this Agreement shall be reduced by any
royalty amounts paid under the Patent Assignment Agreement executed
contemporaneously with this Agreement.
4.3 If any Licensed Patent(s), Licensed Product(s),
and/or Licensed Technology, or other Licensor trade secrets within
the Field of Use is directly or indirectly a component of usage by
the Licensee or Sublicensee, all Royalties Fees required in this
Agreement must be fully paid or Licensee will be in breach of the
Agreement.
4.4 The Royalty Fee for payments actually received
(or discounted in the case of conditional contract sales and
rentals) during each Calendar Quarter based upon invoiced sales
will be paid to Licensor within sixty (60) days after the end of
each Calendar Quarter, provided, however, that all Royalty Fees
based upon any sales by a sublicensor or subcontractor (which also
manufactures and assembles) shall accrue in the Calendar Quarter
the sublicensing fees are received by Licensee, but shall accrue no
later than the Calendar Quarter immediately subsequent to the
Calendar Quarter in which the relevant sales were originally
invoiced, regardless of whether licensee has or has not received
payments from sublicensor or subcontractor.
4.5 Royalty Fee payments will be accompanied by
account statements certified as accurate and complete by Licensee
for each Calendar Quarter setting forth the amount of invoiced
sales, payments received and credits in the aggregate and
separately for each Licensed Product by serial number to the extent
possible. If Licensor has not received any Royalty Fees payment
within thirty (30) days of the date it is due and payable, Licensor
may serve Licensee notice providing Licensee thirty (30) days to
correct such payment deficiency, with interest, or be considered in
breach of this Agreement.
4.6 Information regarding the gross revenues for
all projects, uses and applications of Licensee shall be made
available to the Licensor, with an indication made as to which
utilized Licensor’s IP. Licensor shall be entitled to, on
reasonable notice to Licensee, examine the books and records of any
and all Licensed Product sa
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