COLLABORATION AGREEMENT
This Agreement is entered into between:
AP Manufacturing, a corporation organized under the laws of Imperium Omicronis, having its principal place of business at Alabama Shipyard, Omicron Rho
(hereinafter referred to as "APM")
and
Cryer Pharmaceuticals, a corporation organized under the laws of The Republic of Liberty, having its place of business at Planet Denver, Colorado
(hereinafter referred to as "CRYER").
In consideration of the mutual covenants and obligations set forth herein, the Parties hereto, intending to be legally bound, agree on establishing a joint lab for pharmacological and genetic research hereinafter referred to as "FONS IUVENTAE" with regard to the following conditions:
1. Purpose
1.1. The FONS IUVENTAE will be the hub of the cooperative relationship between both Parties and an effective way of conducting research in the form of a joint endeavor. The purpose of establishment is to:
1.1.1. Examine the physiological characteristics of live human subjects positively identified as having developed or acquired Cardamine dependency, inherited genetic mutations characteristic of trans-generative Cardamine intake or otherwise indicating abnormal physiological features.
1.1.2. Study the effects of both long term and short term exposure of test subjects referred to in 1.1.1. to various substances and isolate stimulated genetic development of certain physiological features with the aim of outlining reproducible, synthesizable means of application.
1.2. Standing purposes may be redefined at any time by means of extension to this agreement, with the consent of both Parties.
2. Location and execution
2.1. The primary place of operation for FONS IUVENTAE will be established on Atka Research Station in Sigma 17. If circumstances prove it necessary, relocation to a secondary site at Alabama Shipyard in Omicron Rho may be considered with the consent of APM.
2.2. FONS IUVENTAE will be provided with an Expert Committee and Management Office at its current place of operation as follows:
2.2.1. The Expert Committee will be composed of the related personnel of both Parties and have one chairman and several members. Chairman will be held by the member assigned by each Party in turn. The responsibility of the Expert Committee is: determine the work projects and contents of the FONS IUVENTAE; evaluate its project research, development, consultancy and achievement translation.
2.2.2. The Management Office will be an administrative office of the FONS IUVENTAE. Each Party will assign one member to it. The responsibility of this Office is: take charge of the daily work of FONS IUVENTAE; convene meetings of the Expert Committee.
3. Application and intellectual property
3.1. All scientific results achieved by FONS IUVENTAE are shared intellectual property of CRYER and APM in equal amount.
3.2. Both Parties may apply any scientific results of this collaboration to other branches of their respective operations without knowledge or consent of one another provided that the derivatives of such applications serve internal purposes only and are not by any means marketed or distributed to third parties.
3.3. Derivatives produced by either Party applied for commercial purposes, such as product marketing or license distribution are subject to a 50% stake of interest per sale unit or total licensing profit to benefit the other Party.
3.4. Neither Party is under any circumstances allowed to sell or otherwise discard its share of the intellectual property thus acquired to third parties without the knowledge and consent of the other Party. Transfer of the respective share of that property between CRYER and APM is possible under mutual agreement.
4. Non-disclosure
4.1. Both Parties agree irrevocably to non-disclosure of the research conducted within the frame of this agreement, including but not limited to identity of the test subjects, identity of the assigned staff, tested substances, achieved results, general modus operandi, towards third parties, including those involved in other legal agreements with either Party.
4.2. Further applications of any results achieved by FONS IUVENTAE do not influence the hereby established non-disclosure obligation.
5. Profit Distribution
5.1. Profits will be distributed to both Parties on a pro-rata basis with consideration of share and interest referred to in 3.3. depending on the technology source of translated results (i.e. new products), product marketing as well as market performance of products.
5.2. Optional market project cooperation, along with specific distribution percentages are to be agreed upon by both Parties according to the specific situations of different projects should a such joint market project be agreed on in the course of collaboration.
6. Place of jurisdiction
The general place of jurisdiction for this agreement is Planet Nauru under the laws of Imperium Omicronis without regard to the conflict of law principles thereof that may dictate application of the laws of The Republic of Liberty or any other state.
7. Term and termination
7.1. Unless earlier terminated pursuant to 7. the term of this Agreement shall commence on the effective date and shall remain in full force and effect for an indefinite period.
7.2. Either Party shall have the right, at any time after the effective date, to terminate this Agreement in its entirety by providing not less than 12 weeks prior written notice of such termination.
8. Force majeure
No Party (or any of its Affiliates) shall be held liable or responsible to the other Party (or any of its Affiliates), or be deemed to have defaulted under or breached the Agreement, for failure or delay by such Party in fulfilling or performing any term of the Agreement when such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party (or any of its Affiliates), including embargoes, war, acts of war (whether war be declared or not), insurrections, civil commotions, or omissions or delays in acting by any governmental authority.
9. Disclaimer
CRYER and APM each acknowledge that the relationship between the two Parties established by this Agreement shall not constitute a partnership or any type of fiduciary relationship. Neither CRYER nor APM shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party, without the prior consent of the other Party to do so.