5.SUBLICENSING<OPTIONAL>

NPDraft11/21/2013

Subjecttofurtherreview

ExclusiveLicenseAgreement

between

TheResearchFoundationforTheStateUniversityofNewYork

and

<LicenseeName>

1.DEFINITIONS

2.GRANTOFRIGHTSANDRETAINEDRIGHTS

3.CONSIDERATIONANDPAYMENTTERMS

4.DUEDILIGENCEANDCOMMERCIALIZATIONACTIVITIES

5.SUBLICENSING<OPTIONAL>

6.PATENTPROSECUTIONANDPATENTCOSTS

7.BOOKS,RECORDS,ANDREPORTS

8.ENFORCEMENTOFPATENTRIGHTS

9.INDEMNIFICATIONANDINSURANCE

10.TERMINATION

11.WARRANTYANDLIABILITY

12.ASSIGNMENT

13.OBLIGATIONSTOFEDERALGOVERNMENTANDOTHERSPONSORS

14.NON-USEOFNAMES

15.FOREIGNLAWS

16.COMPLIANCEWITHLAWS

17.CONFIDENTIALITY

18.MISCELLANEOUS

EXHIBITA:FieldofUseandTerritory

EXHIBITB:LicensedPatents

EXHIBITC:KnowHow

EXHIBITD:CommercializationPlan

[Schedule1:FormofConvertiblePromissoryNote]

[Schedule2:OptionRights]

[Schedule3:LimitedLiabilityCompanyOperatingAgreement]

Thisagreement(hereinafter,“Agreement”)ismadeandiseffectiveasof<EffectiveDate>(hereinafter,“EffectiveDate”)byandbetweenTheResearchFoundationforTheStateUniversityofNewYork,onbehalfof<UniversityCampus>,anon-profiteducationalcorporation,organizedandexistingunderthelawsoftheStateofNewYork,havingofficesat<RFCampusAddress>(hereinafter,“Foundation”),andLicensee,a<State<corporation/limitedliabilitycompany>,havingaprimaryaddressat<LicenseeAddress>(hereinafter,“Licensee”).

RECITALS

WHEREAS,FoundationownscertainintellectualpropertyrightsinandtotheTechnology,asdefinedinthisAgreement;and

WHEREAS,FoundationdesirestohavetheTechnologydevelopedandusedtothefullestextentforthebenefitofthepublic;and

WHEREAS,LicenseedesirestoobtainrightstocertainLicensedSubjectMatterrelatedtotheTechnology,asprovidedherein,fordevelopmentandcommercializationpurposes.

NOW,THEREFORE,subjecttothetermandconditionscontainedherein,andinconsiderationofthepremisesandothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichareherebyacknowledged,thepartiesagreeasfollows:

DEFINITIONS

AllcapitalizedtermsusedinthisAgreementwillhavethemeaningsstatedbelowordefinedelsewhereintheAgreement.

1.1.“Affiliate”meansanycorporationorotherbusinessentitythatcontrols,iscontrolledby,orisundercommoncontrolwithaParty.Acorporationorotherentitywillberegardedasincontrolofanothercorporationorentityifitownsordirectlyorindirectlycontrolsatleastfiftypercent(50%)oftheoutstandingsharesorothervotingrightsoftheothercorporationorentityhavingtherighttoelectdirectorsorsuchlesserpercentagethatisthemaximumpermittedtobeownedbyaforeignentityinthosejurisdictionswheremajorityownershipbyforeignentitiesisprohibited,or(i)intheabsenceoftheownershipofatleastfiftypercent(50%)oftheoutstandingsharesorothervotingrightsofacorporation,or(ii)inthecaseofanon-corporatebusinessentity,ifitpossesses,directlyorindirectly,thepowertodirectorcausethedirectionofthemanagementandpoliciesofthecorporationornon-corporatebusinessentity,asapplicable,whetherthroughtheownershiporcontrolofvotingsecurities,bycontractorotherwise.

1.2.“AnnualMinimumRoyalties”hasthemeaningassignedandascribedinSection3.5.

1.3.“CommercializationPlan”meansthecommercializationplansetforthinEXHIBITD.

1.4.“Field”meansthefield(s)ofusesetforthinEXHIBITA.

1.5.“IndemnifiedParties”hasthemeaningassignedandascribedinSection9.1(a).

1.6.“LicenseMaintenanceFee(s)”hasthemeaningassignedandascribedinSection3.4.

1.7.“LicensedPatents”meansthepatentsandpatentapplicationslistedinEXHIBITB.

1.8.“LicensedProduct(s)”meansallproductsthat(i)ifmade,used,offeredforsale,sold,imported,leasedorotherwisetransferredwithintheTerritory,butforthelicensegrantedherein,wouldinfringethePatentRights,or(ii)incorporate,use,oraremadewiththeuseoftheTechnology,oranypartthereof,or(iii)aremadebyusingaLicensedServiceasdefinedinSection1.9,or(iv)whenused,practiceaLicensedServiceasdefinedinSection1.9.AsusedwithinthisAgreement,theterm“LicensedProduct(s)”includes“LicensedService(s)”asdefinedinSection1.9.

1.9.“LicensedService(s)”means(i)anymethod,process,procedureorservicethat,butforthelicensegrantedherein,wouldinfringethePatentRights,or(ii)anymethod,process,procedure,orservicethatresultsinthemanufactureofaLicensedProduct,asdefinedinSection1.8.

1.10.“LicensedSubjectMatter”meansthePatentRightsandrelatedTechnologywithintheField.

1.11.“MaterialObligations”hasthemeaningassignedandascribedinSection10.1(a).

1.12.“MilestonePayments”hasthemeaningassignedandascribedinSection3.7.

1.13.“NetSales”meansthegrossrevenuesreceivedbyLicensee,Affiliates,andSublicenseesfromthemanufacture,use,sale,lease,orothertransferofanyLicensedProductincluding,withoutlimitation,theprovisionofanyLicensedService,lesssalesand/orusetaxesactuallypaid,importand/orexportdutiesactuallypaid,outboundtransportationpaid,prepaidorallowed,andamountsallowedorcredited,andactuallyrefunded,duetoreturns(asreflectedontheinvoice,andnottoexceedtheoriginalbillingamount).Inthiscontext,grossrevenueswillalsoincludethefairmarketvalueofanynon-cashconsiderationreceivedbyLicensee,AffiliatesandSublicenseesforthemanufacture,use,sale,lease,orothertransferofLicensedProductandprovision of any Licensed Service.

1.14.“PatentCosts”meansallcostsincidenttopreparing,filing,prosecuting,andmaintainingthePatentRightsintheUnitedStatesandelectedforeigncountries,andanyandallcostsincurredinfilingcontinuations,divisionalapplications,orrelatedapplicationsthereonandanyre-examinations,reissue,orsimilarpost-grantproceedingsthereof.

1.15.“PatentRights”meansFoundation’spatentrightstoanysubjectmatterthatisclaimedin,couldbeclaimedin,orisotherwisecoveredby:(i)oneormoreValidClaimsinanyoftheLicensedPatents,includinganyreissues,orreexaminationsthereof;and(ii)anycontinuationordivisionalapplicationsoftheLicensedPatentsfiledbeforetheEffectiveDateorduringtheTerm,andanypatentsissuedthereon,including,without limitation, reissued patents.

1.16.“PaymentsDue”means,individuallyorcollectively,anyRoyalties,LicenseMaintenanceFees,AnnualMinimumRoyalties,SublicensingFees,MilestonePayments,latepaymentfees,PatentCosts,orotheramountsduetoFoundationunderthisAgreement.

1.17.“ReportingPeriod”meansacalendarquarter.

1.18.“Royalty”and“Royalties”hasthemeaningassignedandascribedinSection3.3.

1.19.“SublicenseAgreement”(or“Sublicense”)meanstheagreementunderwhichLicenseegrantstoanauthorizedSublicenseeanyoralloftherightsgrantedtoLicenseeunderthisAgreement.

1.20.“Sublicensee”meansanynon-AffiliatethirdpartytowhomLicenseegrantsasublicenseofanyoralloftherightsgrantedtoLicenseeunderthisAgreement.

1.21.“SublicensingFee(s)”hasthemeaningassignedandascribedinSection3.6.

1.22.“SublicensingRevenue”meansanypaymentsthatLicenseeoranAffiliatereceivesfromaSublicenseeinconsiderationoftherightsgrantedinaSublicenseAgreement,includingwithoutlimitation,licensefees,milestonepayments,licensemaintenancefees,servicefees,royalties,andotherpayments,butspecificallyexcludinganyRoyalties.

1.23.“Technology”means:(i)thetechnologydevelopedatthe<UniversityCampus>onorbeforetheEffectiveDateandwhichFoundationisfreetodisclose,andisdisclosing,toLicensee,assetforthinFoundationDocketNumber______titled______;and(ii)thetechnicalinformation,formulations,knowledge,processes,andprocedures,whetherornotpatentedorpatentable,inwhichFoundationhasalegalinterestandisfreetodisclose,andisdisclosing,toLicensee,assetforthinEXHIBITCattachedheretowhichisrelatedtotheLicensedPatents,andwhichwasdevelopedpriortotheEffectiveDateatthe<UniversityCampus>.

1.24.“Term”meanstheperiodoftimebeginningontheEffectiveDateandendingontheearlierof:(i)theexpirationdateofthelasttoexpirePatentRight;or(ii)<number>(<#>)yearsfromthedateofthefirst sale of a Licensed Product.

1.25.“Territory”meanstheterritorysetforthinEXHIBITA.

1.26.“ValidClaim”meansanyunexpiredclaiminanissuedunexpiredpatent,oranyclaimofapendingpatentapplicationorsupplementaryprotectioncertificatewithinthePatentRightsthathasnotbeenrevoked,abandoned,disclaimedorwithdrawn,orheldunenforceable,unpatentable,orinvalidbyacourtofcompetentjurisdictioninafinaljudgmentthathasnotbeenappealedwithinthetimeallowedbylaworfromwhichthereisnofurtherappeal.

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GRANTOFRIGHTSANDRETAINEDRIGHTS
ExclusiveLicense.SubjecttothetermsofthisAgreement,includingwithoutlimitationSection2.2,FoundationgrantstoLicenseeanexclusivelicenseundertheLicensedSubjectMattertomake,havemade,use,sell,andofferforsaleLicensedProduct(s)intheTerritoryduringtheTerm,includingtherighttosublicenseassetforthinSection5.ThislicenseissubjecttotheoverridingobligationstotheU.S.Governmentsetforthin35U.S.C.§§200-212andanyfutureamendmentsthereto,andapplicablegovernmentalimplementingregulations,includingbutnotlimitedtothosedescribedinSection13herein.
RetainedRights.

Foundation reserves the right to:

(a)UsetheLicensedSubjectMatterforacademic,educational,andresearchpurposes,including,withoutlimitation,sponsoredresearchandcollaborations;

(b)Publishorotherwisedisseminateanyinformationabout the Technology at any time; and

(c)Allow,atFoundation’ssolediscretion,othereducationalandnonprofitinstitutionstousetheLicensedSubjectMatterforacademic,educational,andresearchpurposes.

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CONSIDERATIONANDPAYMENTTERMS

ThepartiesheretounderstandthatthefeesandroyaltiespayablebyLicenseetoFoundationunderthisAgreementarepartialconsiderationforthelicensegrantedunderthisAgreement.LicenseewillpayFoundation:

3.1.UpfrontFee.Withinthirty(30)daysoftheEffectiveDate,LicenseewillpaytoFoundationanupfront,nonrefundable,noncreditablepaymentof______U.S.Dollars(US$______).

[OPTION:useforissuanceofconvertibledebtinlieuofupfrontfeespaidincash.ThiscanalsobeusedinlieuofothercashfeessetforthinthisSection3.1].Suchupfront,nonrefundable,noncreditablepaymentshallbemadebyLicenseedeliveringtoFoundationtheConvertiblePromissoryNoteintheformattachedheretoasSchedule1.]

3.2.Equity(Corp).Inlieuofcash,otherup-frontlicensingfeesandmilestonepayments,LicenseewillissuetoFoundationsuchnumberofsharesofcommonstockofthecapitalstockofLicenseeaswillcauseFoundationtoownsharesofcommonstockrepresentingatleast<number>percent(<#>%)oftheoutstandingsharesofthecapitalstockofLicenseeonafullydilutedbasisthrough<number>U.S.dollars($<#>)ofcumulativethirdpartyequityfinancingsofLicensee.ThestockwillbeissuedpursuanttoFoundation’sstandardequitydocumentation,andwillincludearedemptionrightexercisableuponcertaintriggerevents.

[OPTION:usewhentakingfuture“option”toreceivesharesinsteadofreceivingsharesatclosings.Inlieuofcash,otherup-frontlicensingfeesandmilestonepayments,FoundationshallhavetherightssetforthonSchedule2].

[Alt3.2]Equity(LLC).InpartialconsiderationfortheLicense,LicenseewillissuetoFoundationamembershipinterestrepresentingcumulatively<number>percent(<#>%)oftheoutstandingmembershipinterestsofLicensee.Separatelyandadditionally,alsoinpartialconsiderationfortheLicense,LicenseewillissuedirectlytoInventors,inindividualallocationsaccordingtoAppendixAtoSchedule3,concurrentlywiththeexecutionofthisAgreement,respectivemembershipinterestsrepresentingcumulatively<number>percent(<#>%)oftheoutstandingmembershipinterestsofLicensee.TheLimitedLiabilityCompanyOperatingAgreementprovidingtherespectiverightsandobligationsofmembersisattachedto this Agreement as Schedule 3.

[OPTION:usewhentakingfuture“option”toreceivememberinterestsinsteadofreceivingmembershipatclosing.Inlieuofcash,otherup-frontlicensingfeesandmilestonepayments,FoundationshallhavetherightssetforthonSchedule2].

3.3.LicenseMaintenanceFee.LicenseewillpaytoFoundationa,nonrefundable,noncreditablefeeof<number>U.S.dollars($<#>)(the“LicenseMaintenanceFee”),peryear,andpayableonthefirstanniversaryoftheEffectiveDateandannuallythereafteroneachanniversaryoftheEffectiveDate;providedhowever,thatLicensee’sobligationtopaytheLicenseMaintenanceFeewillendonthefirstanniversaryfollowingthedateofLicensee’sfirstcommercialRoyalty-generatingsaleofaLicensedProduct.

3.4.AnnualMinimumRoyaltiesonNetSales.BeginningthecalendaryearoffirstcommercialsalesofthefirstLicensedProductbyLicensee,anAffiliate,orSublicensee,andifthetotalRoyaltiespaidbyLicenseeunderSection3.3toFoundationinanysuchyearcumulativelyamountstolessthantheminimumamountspecifiedinthetablebelowforeachcalendaryear(the“AnnualMinimumRoyalty”),LicenseewillpayFoundationthedifferencebetweentheapplicableAnnualMinimumRoyaltyandthetotalRoyaltiespaidfortheapplicablecalendaryearbyLicenseetoFoundationforsaidyearunderSection3.3withinthirty(30)daysoftheendofsaidcalendaryear:

CalendarYear / AnnualMinimumRoyalties($US)

3.5.SublicensingFees.LicenseewillpayFoundation<number>percent(<#>%)oftheSublicensingRevenues(“SublicensingFees”).

3.6.MilestonePayments.LicenseewillpayFoundationmilestonepaymentsoncertainmilestonesoftheCommercializationPlanaccordingtothefollowingschedule(“MilestonePayments”):

Milestone / MilestonePayment($US)

3.7.PaymentTerms.AlldollaramountsforPaymentsDuereferencedhereinwillrefertoU.S.Dollars.Paymentswithdesignatedpaymentdatesaredueandpayableonorbeforethosedates.Royaltieswillbedueandpayablewithinthirty(30)daysaftertheendofeachReportingPeriodfortheNetSalesreceivedduringsuchReportingPeriod.Allinvoicedamounts,including,butnotlimitedto,thereimbursementofPatentCosts,willbedueandpayablewithinthirty(30)daysoftherespectiveinvoicedate.WhenLicensedProduct(s)aresoldforcurrenciesotherthanU.S.Dollars,RoyaltieswillfirstbedeterminedinsuchforeigncurrencyandthenconvertedintoequivalentU.S.DollarspertheexchangeratequotedintheWallStreetJournalonthelastbusinessdayoftheapplicableReportingPeriodassuchforeigncurrencyperU.S.Dollar.Fortheavoidanceofdoubt,Licenseeissolelyresponsibleforbanktransfercharges,includingbutnotlimitedto,wiretransferfees.

3.8.PaymentAddress.AllpaymentsforPaymentsDuewillbemadepayableto“TheResearchFoundationofStateUniversityofNewYork”andwillbesenttothefollowingaddress:

Address

Attn:______]

ForWireTransfers:

Bank:KeyBankofNewYork

66SouthPearlStreet

Albany,NY12207

AccountNumber:10970107

RoutingNumber:ABA0213-00077

SwiftCode:KEYBUS33

Pleaseincludethenotation:“OfficeofTechnologyLicensingat<UniversityCampus>”

3.9.LatePayment.IntheeventthatanyPaymentsDuearenottimelyreceivedbyFoundationwhendue,LicenseewillpaytoFoundation,inadditiontosuchPaymentsDue,interestonsuchPaymentsDuecomputedusingthelesserrateof:(i)twelvepercent(12%)perannum;or(ii)themaximumrateallowableundertheapplicablelaw.Interestwillbecalculatedfromthedatepaymentwasdueuntilactuallyreceived by Foundation, inclusive.

3.10.ForeignCharges.Royaltiesdueforsalesthatoccurinanycountrymaynotbereducedbyanydeductionofwithholding,value-addedtaxes,fees,orotherchargesimposedbythegovernmentofsuchcountry,exceptaspermittedinthedefinitionofNetSales.

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DUEDILIGENCEANDCOMMERCIALIZATIONACTIVITIES
LicenseeandFoundationhaveagreedontheinitialCommercializationPlanforLicensee’seffortstodevelop,market,andcommercializetheLicensedSubjectMatterandLicensedProduct(s).
UponexecutionofthisAgreement,Licenseewill,eitherdirectlyorthroughitsAffiliatesorauthorizedSublicensees,diligentlyproceedwithimplementationoftheCommercializationPlan.
LicenseewillcompletethemilestonessetforthintheCommercializationPlanbythedatesspecifiedtherein.
LicenseeacknowledgesandagreesthatafundamentalpurposeofthisAgreementistoachievedevelopmentandcommercializationoftheLicensedSubjectMatterandLicensedProducts,andthetermsinthisSection4constitutematerialtermsofthisAgreement.IfLicenseefailstoperformanyofitsobligationsspecifiedinthisSection4,thenFoundationwillhavetheunilateralrightandoptionto:(i)terminatethisAgreement;or(ii)modifythetermsoftheAgreementfromanexclusivelicensetoanon-exclusivelicense.Thisrighttomodifytheterms,ifexercisedbyFoundation,supersedestherightsgrantedinSection2.1 of this Agreement.

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SUBLICENSING<OPTIONAL>
ThelicensegrantedbythisAgreementincludestherightofLicenseetograntSublicenses.WithrespecttoSublicensesgrantedpursuantto this Agreement, Licensee will:

(a)seekandsecureFoundation’spriorwrittenconsentpriortofinalizinganySublicenseAgreement,whichconsentwillnotbeunreasonablywithheld;

(b)includeinanySublicenseAgreementalloftherightsof,andobligationsdueto,FoundationandcontainedinthisAgreement;

(c)promptlyprovidetoFoundationacopyofeachexecutedSublicenseAgreement;

(d)notreceive,oragreetoreceive,anythingofvalueinlieuofcashasconsiderationfromathirdpartyunderaSublicensewithouttheexpresswrittenconsentofFoundation;

(e)makeallPaymentsDueanddeliverallreportsduetoFoundationwhetherowedbyLicensee,Affiliates,orSublicensees,andusecommerciallyreasonableeffortstocollectallpaymentsdue,directlyorindirectly,toFoundationfromSublicensees.

5.2.UponterminationofthisAgreementforanyreason,Foundation,atitssolediscretion,willdeterminewhetherLicenseewillcancelorassigntoFoundationanyandallSublicenseAgreements.LicenseewillincludeaprovisionineachSublicenseAgreementwhichallowsFoundationtoassumetheSublicenseAgreementif:(i)thisAgreementisterminated;and(ii)FoundationchoosestoassumetheSublicenseAgreement.

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PATENTPROSECUTIONANDPATENTCOSTS
PatentRightsManagement.Foundationwillbesolelyresponsibleforthepreparation,filing,prosecution,andmaintenanceofthePatentRights.Licenseeagreestocooperate,andtocauseitsSublicenseesandAffiliatestocooperate,withFoundationinatimelymannerinthepreparation,filing,prosecution,andmaintenanceofPatentRightsbydisclosingsuchinformationasmayberequestedfromtimetotimebyFoundationandbypromptlyexecutingsuchdocumentsasFoundationmayreasonablyrequestinconnectiontherewith.LicenseeanditsSublicenseesandAffiliateswillbeartheirowncostsinconnectionwiththeircooperationwithFoundationunderthisSection6.1.Uponrequest,Foundationwillprovide,orwillhavetheirlegalcounselprovide,toLicenseecopiesofdocumentsreceivedorpreparedbyFoundationintheprosecutionandmaintenanceofthePatentRightsthataredirectlyrelatedtoLicensee’sperformanceunderthisAgreement.
ReimbursementofPatentCosts.Withinthirty(30)daysoftheEffectiveDate,LicenseewillreimburseFoundationforallPatentCostsincurredpriortotheEffectiveDate.

LicenseewillpayallPatentCostsincurredaftertheEffectiveDatewithinthirty(30)daysafteritsreceiptofaninvoiceforsuchPatentCosts.

6.3.Invoicing.ForallPatentCosts,Foundationmay,atitsoption:(i)invoiceLicenseedirectly;or(ii)havethelawfirmorotherentityprovidingthepatent-relatedservicestosendacopyofeachPatentCostinvoicetoLicenseefordirectpaymentbyLicenseeofsuchPatentCostexpenses.

6.4.IfLicenseedecidestodiscontinueitssupportofPatentCostsforaspecificLicensedPatent(s)and/orforaparticularissuedpatentorpendingpatentapplicationclaimingprioritytoaLicensedPatent(s),LicenseewillnotifyFoundationinwritingonehundredandeighty(180)dayspriortoanysuchdiscontinuation.LicenseewillberesponsibleforreimbursingFoundationforanyPatentCostsassociatedwithsuchPatentRightsthatLicenseeincurreduptoonehundredandeighty(180)daysafterthedateofthereceiptofnotice,whetherornotsuchcostswereinvoicedtoand/orpaidbyLicensee.Uponsuchdiscontinuation,Foundation,atitssolediscretion,willhavetherightsto:(i)abandontheapplicationandanyrelatedapplications;(ii)excludethepatentapplication,andanyrelatedapplications,includinganyapplicationthatclaimsprioritytothepatentapplicationoranypatentapplicationfromwhichthepatentapplicationmayclaimpriority,fromanylicensegrantedunderthisAgreement;(iii)grantonlyanon-exclusivelicensetothepatentapplication,andanyrelatedapplications;(iv)convertanyexclusivelicensegrantedunderthisAgreementtoanon-exclusivelicense;and/or(v)terminatethisAgreement.FoundationandLicenseeagreetoamendEXHIBITBinatimelymannerafternotificationofdiscontinuationofsupportunderthisSection6.4.

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BOOKS,RECORDS,ANDREPORTS
FullandAccurateRecords.Licenseewillkeep,andwillcauseitsAffiliatesandSublicenseestokeep,fullandaccuratebooksandrecordsinsufficientdetailsothatLicensee’scompliancewithitsobligationsunderthisAgreementcanbeproperlydeterminedwithoutunduedelayordifficulty.Suchbooksandrecordswillbemaintainedforatleastfive(5)yearsaftertheReportingPeriod(s)towhichtheyrelate.Booksandrecordswillincludebutnotbelimitedto:accountinggeneralledgers;invoice/salesregisters;originalinvoiceandshippingdocuments;federalandstatebusinesstaxreturns;companyfinancialstatements;salesanalysisreports;inventoryandmanufacturingrecords;sublicenseanddistributoragreements;pricelists,productcatalogs,andothermarketingmaterials;andlaboratorynotebooks.
InspectionofRecords.Foundationmay,fromtimetotimeandatanyreasonabletime,notexceedingonceeverytwelve(12)months,throughsuchindividualsandauditorsasFoundationmaydesignate,inspectthebooksandrecordsofLicensee,itsAffiliates,anditsSublicensees,inordertoverifytheaccuracyofanyreportedstatementbyLicenseeofPaymentsDueoramountspaid,ortodeterminecompliancewithanyotherobligation(s)ofLicenseeunderthisAgreement.

Aftercompletionofanysuchinspection,FoundationwillnotifyLicenseeinwritingofanydiscrepanciesinPaymentsDueoramountspaidtoFoundation.SuchinspectionwillbemadeattheexpenseofFoundation,unlesssuchinspectiondisclosesanunderpaymentdiscrepancyoffivepercent(5%)ormoreinthePaymentsDueoramountspaidtoFoundation.Insuchcase,LicenseewillberesponsibleforreimbursingFoundationfortheinspectionfeeandexpensesassociatedwithsuchinspection.LicenseeagreestopaypastdueamountsforanydeficiencyerrorinPaymentsDueasdeterminedbytheauditor,includingwithoutlimitationanypaymentdeficiencysincetheEffectiveDateoftheAgreement.Anyunderpaymentasdeterminedbytheauditorwillbearinterestatonepercent(1%)permonthfromthedatetheoriginalpaymentwasdue.Foundationandtheauditorwillmaintaininconfidencesuchinspectionandtheresultingreport.TheauditormayfromtimetotimeconsulttheFoundationandanyofitsemployeesorthirdpartycounselonquestionsastheyrelatetothisAgreement.Theauditormaynotdisclosefinancialorproprietaryinformationexceptasrequiredtoconducttheaudit,toreporttheresultsoftheaudit,orasotherwisepermittedbythisAgreementoriftheinformationalreadyexistsinthepublicdomain.NootherconfidentialityagreementwillberequiredtoconducttheauditoftheLicensee’sbooksandrecords.

7.3.SublicenseeReports.LicenseewillprovideFoundationwithcopiesofallreportsLicenseereceivesfromSublicenseeswithinthirty(30)daysofLicensee’s receipt of such reports.

7.4.ReportingPeriodReports.Withinthirty(30)daysaftertheendofeachReportingPeriodduringtheTerm,LicenseewillprovidereportscontainingthefollowinginformationfortheapplicableReportingPeriod:(i)thenumberandtypeofLicensedProductsmadebyorforLicensee,itsAffiliates,anditsSublicensee(s);(ii)thenumberandtypeofLicensedProductssoldbyLicensee,itsAffiliates,anditsSublicensee(s);(iii)theNetSales(andthecalculationofNetSales);(iv)theRoyaltiesdueunderSection3.3;(v)theSublicensingRevenue(andthecalculationofSublicensingRevenue);(vi)theSublicensingFeesdueunderSection3.6;and(vii)thetotalamount(RoyaltiesandSublicensingFees)duetoFoundation.LicenseewillsubmitthesereportstoFoundationeveniftherearenoPaymentsDueforaparticularReportingPeriod.Theforegoingwillbeprovided on a country-by-country basis.

7.5.AnnualReports.Withinthirty(30)daysaftertheendofeachcalendaryearduringtheTerm,Licenseewillalsoprovidereportscontainingthefollowinginformationfortheapplicablecalendaryear:(i)thenumberandtypeofLicensedProductsmadebyorforLicensee,itsAffiliates,anditsSublicensee(s);(ii)thenumberandtypeofLicensedProductssoldbyLicensee,itsAffiliates,anditsSublicensee(s);(iii)theNetSales(andthecalculationofNetSales);(iv)RoyaltiesunderSection3.3;(v)theSublicensingRevenue(andthecalculationofSublicensingRevenue);(vi)theSublicensingFeesunderSection3.6;(vii)anyLicenseMaintenanceFeesunderSection3.4;(viii)theAnnualMinimumRoyaltiesunder3.5;(ix)themilestonescompletedandtheMilestonePaymentsunder3.7;and(x)thetotalamountpaidorpayableforanyPaymentsDue.LicenseewillsubmitthesereportstoFoundationeveniftherewerenoPaymentsDuefortheparticularperiod.Theforegoingwillbeprovidedonacountry-by-countrybasis.

7.6.Semi-AnnualDueDiligenceReports.Withinthirty(30)daysaftertheendofeachsecondandfourthcalendarquarter,Licenseewillprovidereportscontainingthefollowinginformationrelatingtothetwopreviouscalendarquarters:progressonthecommercializationanddevelopmentoftheLicensedSubjectMatterandLicensedProducts(i.e.,newproductdevelopment,productevaluationandtesting,marketingplans,salesforecasts,significantcommercializationevents,progressonthemilestonessetforthinSection4).Theforegoingwillbeprovidedonacountrybycountrybasis.

7.7.ReportCertification.AnofficerofLicenseewillsignandcertifyeachreport,andallreportswillbepreparedinaccordancewithGenerally Accepted Accounting Principles.

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ENFORCEMENTOFPATENTRIGHTS
FoundationandLicenseewillpromptlyinformtheotherinwritingofanyactual,alleged,orsuspectedinfringementofaLicensedPatentorviolationofanyPatentRightbyathirdparty,ofwhichitisaware,andprovideavailableevidenceofinfringement.
WithrespecttoanyPatentRightslicensedexclusivelybyFoundationtoLicenseeunderthisAgreement,Licenseeshallhave,foraninitialperiodofninety(90)daysfollowingnoticeundertheprovisionsofSection8.1,andonlywithFoundation’sprior,writtenauthorization,thefirstright,butnottheobligation,toinstituteandcontroltheprosecutionofasuitortotakeanyotheractionforinfringementofthePatentRights.LicenseewillinformFoundationofitsintenttoinstitutesuchaction,inwriting,andFoundationwillhavefifteen(15)daystoauthorizesuchactionbyLicensee,inwriting.Forclarity,ifFoundationdoesnotprovideawrittenauthorizationwithinthefifteendayperiod,Licenseewillnotbeauthorizedtoinstitutesuchaction.Duringthefifteendayperiod,FoundationmayalsonotifyLicenseethatFoundationwilljoinLicenseeinsuchactionundertheprovisionsofSection8.4.
SubsequenttoLicensee’sinitialninetydayperiod,Foundationshallhavetheright,butnottheobligation,toinstituteandcontroltheprosecutionofasuitortotakeanyotheractionforinfringementofanyofthePatentRights.IfFoundationdecidestoinitiatealawsuittoenforcePatentRightspursuanttothisSection8.3,FoundationwillnotifyLicenseeinwriting.Licenseewillhavefifteen(15)daysfromreceiptofsuchnoticetonotifyFoundationthatLicenseewilljoinFoundationinsuchlawsuitundertheprovisionsofSection8.4.IfLicenseedoesnottimelynotifyFoundationthatitwillbejoininginsuchlawsuit,thenitwillbedeemedthatLicenseehasassignedtoFoundationallrights,causesofaction,anddamagesresultingfromanyallegedinfringement.
FoundationandLicenseemayagreetoenforcepatentrightsjointly,includingbyfilingalawsuitjointly.Ifalawsuitisbroughtjointlyinthenamesofbothparties,thentheout-of-pocketcostsshallbeborneequally,andanyrecoveryorsettlementshallbesharedequally.FoundationandLicenseeshallagreetothemannerinwhichtheyshallexercisecontroloversuchlawsuit.Eachpartymay,atitsownoptionandexpense,berepresentedbyseparatecounselofitsownselection.
IfanysuitisbroughtinvolvingtheenforcementordefenseofthePatentRights,theotherpartyheretoagrees,attherequestandexpenseofthepartyinitiatingsuchsuit,toreasonablycooperateandtomakeavailablerelevantrecords,papers,information,samples,specimensandthelike.
NosettlementorconsentjudgmentorothervoluntaryfinaldispositionofanenforcementordefensesuitinitiatedbyeitherpartytothisAgreementmaybeenteredintowithouttheconsentofFoundation,whichconsentwillnotbeunreasonablywithheld.
IntheeventthatanactionalleginginvalidityornoninfringementofthePatentRightsisbroughtagainstLicensee,Foundationreservestheright,withinthirty(30)daysaftercommencementofsuchaction,tointerveneandtakeoverthesoledefenseoftheactionatitsownexpense.
ThetotalcostofanyactioncommencedordefendedsolelybyFoundationwillbebornebyFoundationandFoundationwillkeepanyrecoveryordamagesderivedtherefrom.
ThecostofanyinfringementactioncommencedordefendedbyLicenseewillbebornebyLicensee.AnyrecoveryordamagesresultingfromsuchanactionwillfirstbeappliedtoLicensee’sout-of-pocketexpensesandlegalfees,andsecondwillbeappliedtoFoundation’sout-of-pocketexpenses,includinglegalfees.AnyexcessrecoveryordamageswillbeconsideredSublicensingRevenuesubjecttopaymentofSublicensingFeesassetforthinSection3.6.

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INDEMNIFICATIONANDINSURANCE
Indemnification.

(a)Licenseeshallindemnify,defend,andholdharmlessFoundationanditstrustees,officers,staff,employees,students,andagentsandtheirrespectivesuccessors,heirs,andassigns(the“IndemnifiedParties”),againstanyliability,damage,loss,orexpense(includingreasonableattorneys’feesandexpensesoflitigation)incurredbyorimposedupontheIndemnifiedPartiesoranyoneoftheminconnectionwithanythirdpartyclaims,suits,actions,demands,orjudgments:(i)arisingoutofthedesign,production,manufacture,sale,useincommerceorinhumanclinicaltrials,lease,orpromotionbyLicenseeorbyanAffiliate,agent,orSublicenseeofLicenseeofanyLicensedProduct,processorservicerelatingto,ordevelopedpursuantto,thisAgreement;or(ii)arisingoutofanyotheractivitiestobecarriedoutbyoronbehalfofLicenseepursuanttothisAgreement.

(b)WithrespecttoanIndemnifiedParty,Licensee’sindemnificationundersubsection9.1(a)(i)shallapplytoanyliability,damage,loss,orexpensewhetherornotitisattributabletothenegligentactivitiesofsuchIndemnifiedParty.Licensee’sindemnificationobligationundersubsection9.1(a)(ii)shallnotapplytoanyliability,damage,loss,orexpensetotheextentthatitisattributabletothenegligentactivitiesofanysuchIndemnifiedParty.

(c)Licenseeagrees,atitsownexpense,toprovideattorneysreasonablyacceptabletoFoundationtodefendagainstanyactionsbroughtorfiledagainstanyIndemnifiedPartieswithrespecttothesubjectofindemnitytowhichsuchIndemnifiedPartiesareentitledhereunder,whetherornotsuchactionsarerightfullybrought.Foundationwillcooperateinthedefensethereof,provided,however,thatFoundationwillhavetheright,butnottheobligation,tocontrolthedefense,atitsexpense,ofanysuchactions.FoundationandtheIndemnifiedPartiesmay,attheiroptionandexpense,havetheirowncounselparticipateinanyproceedingwhichisunderdirectionofLicenseeandwillcooperatewithLicenseeanditsinsurerinthedispositionofanysuchmatter;provided,however,thatifLicenseeshallnotdefendsuchactions,FoundationandtheIndemnifiedPartiesshallhavetherighttodefendsuchactionsthemselvesandrecoverfromLicenseeallreasonableattorneys'feesandexpensesincurredbyitduringthecourseofsuchdefense.

(d)NeitherFoundation,theIndemnifiedParties,norLicenseeshallenterinto,orpermit,anysettlementofanysuchactionswithouttheexpresswrittenconsentoftheotherparties,whichshallnotunreasonablybewithheld.

9.2.SecurityforIndemnification.

(a)AtsuchtimeasanyLicensedProduct,process,orservicerelatingto,ordevelopedpursuantto,thisAgreement,iscommerciallydistributedorsold,ortestedinclinicaltrialsbyoronbehalfofLicensee,includingbyitsAffiliatesorSublicensees,Licenseeshallatitssolecostandexpense,procureandmaintainpoliciesofcomprehensivegeneralliabilityinsuranceinamountsnotlessthan(i)$<Number>perincidentand$<Number>annualaggregateduringtheperiodthatsuchLicensedProduct,process,orserviceisbeingtestedinclinicaltrialspriortocommercialsale,and(ii)$<Number>perincidentand$<Number>annualaggregateduringtheperiodthatsuchLicensedProduct,process,orserviceisbeingcommerciallydistributedorsold,andineachcasenamingtheIndemnifiedPartiesasadditionalinsureds.Suchcomprehensivegeneralliabilityinsuranceshallprovide:(i)productliabilitycoverage;and(ii)broadformcontractualliabilitycoverageforLicensee’sindemnificationobligationsunderSection9.1ofthisAgreement.IfLicenseeelectstoself-insureallorpartofthelimitsdescribedabove(includingdeductiblesorretentionswhichareinexcessof$250,000annualaggregate)suchself-insuranceprogramshallincludeassetsorreserveswhichhavebeenactuariallydeterminedfortheliabilitiesassociatedwiththisAgreementandmustbeacceptabletoFoundation.

(b)TheminimumamountsofinsurancecoveragerequiredunderthisSection9.2shallnotbeconstruedtocreatealimitofLicensee’sliabilitywithrespecttoitsindemnificationobligationsunderSection9.1ofthisAgreement.

(c)LicenseeshallprovideFoundationwithwrittenevidenceofsuchinsuranceuponrequestofFoundation.LicenseeshallprovideFoundationwithwrittennoticeatleastsixty(60)dayspriortothecancellation,non-renewal,ormaterialchangeinsuchinsurance;ifLicenseedoesnotobtainreplacementinsuranceprovidingcomparablecoveragebytheendofsuchsixty(60)dayperiod,FoundationshallhavetherighttoimmediatelyterminatethisAgreementperiodwithoutnoticeoranyadditionalwaitingperiods.

(d)LicenseeshallmaintainsuchcomprehensivegeneralliabilityinsurancebeyondtheexpirationorterminationofthisAgreementduring:(i)theperiodthatanyLicensedProduct(s),process,orservice,relatingto,ordevelopedpursuantto,thisAgreementisbeingcommerciallydistributedorsoldortestedinclinicaltrialsbyorforLicensee,itsAffiliates,oritsSublicensee(s);and(ii)areasonableperiodaftertheperiodreferredtoin(i)abovewhichinnoeventshallbelessthanfifteen(15)years.

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TERMINATION
Termination for Licensee Breach.

(a)LicenseeacknowledgesandagreesthatLicensee’sobligationsunderthefollowingprovisionsarematerialtermsofthisAgreement,andLicensee’sfailuretomeetitsobligationsundertheseprovisionswillbetreatedasamaterialbreachofthisAgreement(“MaterialObligations”):(i)obligationsunderArticle3tomakePaymentsDuetoFoundationontheschedulesetforthherein;(ii)obligationsunderArticle4todiligentlypursueandachievecommercializationactivities;(iii)obligationsunderArticle6relatedtopatentprosecutionandpaymentofpatentcosts;(iv)obligationsunderArticle9relatedtoindemnificationandinsurance.

(b)IfLicenseeshould:(i)failtoperformanycovenant,condition,orundertakingoftheMaterialObligationsofthisAgreement;or(ii)materiallybreachanyotherprovisionofthisAgreement;thenFoundationmaygivewrittennoticeofsuchdefaulttoLicensee.IfLicenseeshouldfailtocuresuchdefaultwithinthirty(30)daysofnoticeofsuchdefault,thenthisAgreementmay,atFoundation’soption,beterminatedbywrittennoticetoLicensee.

10.2.AutomaticTermination.IfLicensee:(i)ceasestoattempttocarryonitsbusinesswithrespecttotherightsgrantedintheAgreement;(ii)hasfiledabankruptcyaction;(iii)becomesinsolvent;(iv)makesanassignmentforthebenefitofcreditors;or(v)challenges,whetherasaclaim,cross-claim,counterclaimordefense,thevalidityorenforceabilityofanyofthePatentRightsbeforeanycourt,arbitrator,orothertribunaloradministrativeagencyinanyjurisdiction;thenthisAgreementwillimmediatelyterminatewithoutanyfurtheractionbyFoundation.

10.3.Licensee’sRightToTerminate.LicenseemaynotifyFoundationoftheirdesiretoterminatethisAgreementatanytimebygivingFoundationninety(90)dayspriorwrittennotice.TheterminationwilltakeeffectattheendofthefirstReportingPeriodaftertheninetiethdayhaselapsed.

10.4.AccruedObligations.TerminationofthisAgreementwillnotrelieveLicensee,includingitsAffiliatesandSublicensees,andFoundationofanyobligationorliabilityaccruedhereunderpriortosuchtermination,orrescindorgiverisetoanyrighttorescindanypaymentsmadeorotherconsiderationgiventoFoundationhereunderpriortothetimesuchterminationbecomeseffective.SuchterminationwillnotaffectinanymanneranyrightsofFoundationarisingunderthisAgreementpriortothedateofsuchtermination.Licenseewillpayallattorneys’feesandcostsincurredbyFoundationinenforcinganyobligationofLicenseeoraccruedrightofFoundation.

10.5.DispositionofLicensedProducts.UponexpirationorterminationofthisAgreementbyLicenseeorFoundation,LicenseewillprovideFoundationwithawritteninventoryofallLicensedProductsinprocessofmanufacture,inuse,orinstock.LicenseemaydisposeofanysuchLicensedProductswithintheninety(90)dayperiodfollowingsuchexpirationortermination,provided,however,thatLicenseewillpayRoyaltiesandrenderreportstoFoundationthereoninthemannerspecifiedherein.

10.6.Survival.TheprovisionsSection1(Definitions),Section7(Books,RecordsandReports),Section9(IndemnificationandInsurance),Section10.4(AccruedObligations),Section10.5(DispositionofLicensedProducts),Section10.6(Survival),Section11(WarrantyandLiability),Section14(Non-UseofNames),andSection18(Miscellaneous)willsurviveexpirationorterminationofthisAgreement.

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WARRANTYANDLIABILITY
EXCEPTASOTHERWISEEXPRESSLYSETFORTHHEREIN,FOUNDATIONMAKESNOREPRESENTATIONSANDEXTENDSNOWARRANTIESOFANYKIND,EITHEREXPRESSORIMPLIED,INCLUDING,BUTNOTLIMITEDTO,WARRANTYOFMERCHANTABILITY,FITNESSFORAPARTICULARPURPOSE,ANDVALIDITYOFPATENTRIGHTS..ALLMATERIALSPROVIDEDBYFOUNDATIONUNDERTHISAGREEMENTAREPROVIDED“AS-IS”.
NOWARRANTYORREPRESENTATIONISMADETHATANYTHINGMADE,USED,SOLD,ORCOMMERCIALLYTRANSFERRED,UNDERTHETERMSOFTHISLICENSE,WILLBEFREEFROMINFRINGEMENTOFANYTHIRDPARTY INTELLECTUAL PROPERTY RIGHTS.
NOTHINGINTHISAGREEMENT,EITHEREXPRESSORIMPLIED,OBLIGATESFOUNDATIONEITHERTOBRINGORTOPROSECUTEACTIONSORSUITSAGAINSTTHIRDPARTIESFORPATENTINFRINGEMENTORENFORCEMENTORTOFURNISHANYINTELLECTUALPROPERTY,INFORMATIONORMATERIALSNOTPROVIDEDINTHELICENSEDSUBJECTMATTER.
INNOEVENTWILLFOUNDATIONBELIABLEFORANYINCIDENTAL,SPECIAL,ORCONSEQUENTIALDAMAGESRESULTINGFROMTHEEXERCISEOFTHISLICENSEORTHEUSEOFTHETECHNOLOGY,LICENSEDSUBJECTMATTER,ORLICENSEDPRODUCTS,INCLUDING,WITHOUTLIMITATION,FORLOSTPROFITS,LOSTDATA,ORDOWNTIME,WHETHERORNOTFOUNDATIONHASBEENADVISEDOFTHEPOSSIBILITYOFSUCHDAMAGES.
INNOEVENTWILLFOUNDATION’SAGGREGATELIABILITYTOLICENSEEORANYTHIRDPARTYFORANYCLAIMS,LOSSES,INJURIES,SUITS,DEMANDS,JUDGMENTS,LIABILITIES,COSTS,EXPENSES,ORDAMAGES,FORANYCAUSEWHATSOEVER(INCLUDING,BUTNOTLIMITEDTO,THOSEARISINGOUTOFORRELATEDTOTHISAGREEMENT),ANDREGARDLESSOFTHEFORMOFACTIONORLEGALTHEORY,EXCEEDTHEFEESRECEIVEDBYFOUNDATIONFROMLICENSEEPURSUANTTOTHISAGREEMENT.LIMITATIONSOFLIABILITYREFLECTTHEALLOCATIONOFRISKBETWEENTHEPARTIES.THELIMITATIONSSPECIFIEDINTHISARTICLE11WILLSURVIVEANDAPPLYEVENIFANYLIMITEDREMEDYSPECIFIEDINTHISAGREEMENTISFOUNDTOHAVEFAILEDOFITSESSENTIALPURPOSE.
THISAGREEMENTDOESNOTCONFERBYIMPLICATION,ESTOPPEL,OROTHERWISEANYLICENSEORRIGHTSTOANYOTHERFOUNDATIONPROPERTYOTHERTHANTHOSERIGHTSEXPRESSLYSTATEDHEREIN.

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ASSIGNMENT
ThisAgreementandthelicensegrantedhereundermaynotbeassignedortransferredbyLicenseeexceptinconnectionwiththesaleorothernon-bankruptcytransferofLicensee’sbusinesstowhichthelicensegrantedhereunderrelates.LicenseewillgiveFoundationatleastthirty(30)dayspriorwrittennoticeofanyassignmentortransferofLicensee’sbusinesstowhichthelicensegrantedhereunderrelates,andwillprovideFoundationwithdocumentationexecutedbytheassigneeortransfereethatconfirmstheiragreementtobeboundbythetermsand provisions of this Agreement.
OBLIGATIONSTOFEDERALGOVERNMENTANDOTHERSPONSORS
TheAgreementwillbesubjecttotherightsoftheUnitedStatesGovernment,ifany,resultingfromanyfundingoftheTechnologybytheUnitedStatesGovernment.ThisAgreementwillalsobesubjecttotherightsofanyotherentitiesthatmayhavecontributedfundingtodevelopmentoftheTechnology,ifany.Licenseeacknowledgesthatsuchrights,ifapplicabletoTechnology,mayreservetotheUnitedStatesGovernment,aroyalty-free,non-exclusive,non-transferablelicensetopracticeorhavepracticedonitsbehalfanygovernment-fundedinventionclaimedwithinanyassociatedpatentsorpatentapplications as well as other rights.
LicenseeagreesthatLicensedProductsleasedorsoldintheUnitedStateswillbemanufacturedsubstantiallyintheUnitedStates,pursuantto35U.S.C.§204.
NON-USEOFNAMES
LicenseeagreesthatitwillnotuseFoundation’snameorStateUniversityofNewYork,or<UniversityCampus>,oranyadaptationthereof(includingtrademarks,logos,andsymbolsassociatedwithFoundation,“StateUniversityofNewYork”,and“<UniversityCampus>”)(collectively“SUNY”),orthenamesofthescientists,researchers,orothersemployedatorwithSUNYinanyadvertising,promotional,orsalesliteraturewithoutfirstobtainingFoundation’spriorwrittenconsent,orinthecaseofthenamesofsuchresearchers,scientists,oremployees,thepriorwrittenconsentoftheindividuals,exceptthatLicenseemaystatethatitis a licensee of the Foundation.
FOREIGNLAWS
Whenrequiredbylocalornationallaw,LicenseewillregisterthisAgreement,payallcostsandlegalfeesconnectedtherewith,andotherwiseinsurethatthelocalandnationallawsaffectingthisAgreementarefullysatisfied.
COMPLIANCEWITHLAWS
GeneralCompliance.Licenseewillensurecompliancewithallapplicablecounty,state,federalorforeignlaws,rules,andregulationsgoverningtheproduction,use,marketing,sale,anddistributionofLicensedProducts.
ExportControlLaws.LicenseeanditsAffiliatesandSublicenseeswillcomplywithallU.S.lawsandregulationscontrollingtheexportofcertaincommoditiesandtechnicaldata,including,withoutlimitation,allexportcontrolregulationsoftheU.S.DepartmentofCommerceandtheInternationalTrafficInArmsRegulationsoftheU.S.DepartmentofState,subjecttoallexemptionsandexclusionsthereto.Amongotherthings,theselawsandregulationsprohibittheexport,orrequirealicensefortheexport,ofcertaintypesofcommoditiesandtechnical data to specified countries.

(a)LicenseeExport.Licenseewillnotknowingly,unlessprior,writtenauthorizationisobtainedfromFoundationandinfullcompliancewithallU.S.lawsandregulations,export,directlyorindirectly,toanyrestrictedcountry:(i)anytechnicaldatareceivedfromFoundationunderthisAgreement;and(ii)anyLicensedProductortechnicaldata.Licenseeshallbesolelyresponsibleforobtainingalllicenses,permits,orauthorizationsasrequiredfromtimetotimebytheU.S.andanyothergovernmentforanysuchexportorre-export.Foundationmakesnorepresentationthatanexportlicenseisorisnotrequired,nordoesFoundationmakearepresentationthat,ifrequired,alicensewillbeissuedbytheU.S.DepartmentofCommerceorotherappropriate governmental entity.

(b)LicenseeDisclosuretoFoundation.LicenseewillnotdiscloseortransferanyexportcontrolledtechnologyortechnicaldataidentifiedonanyUSexportcontrollist,including,butnotlimitedto,theCommerceControlList(CCL)at15C.F.R.§774andtheU.S.MunitionsList(USML)at22C.F.R.§121.IntheeventLicenseeintendstoprovideFoundationwithexportcontrolledinformation,LicenseewillinformFoundation,inwriting,thirty(30)dayspriortothereleaseofexportcontrolledtechnologyortechnicaldata.LicenseeagreesnottoprovideanyexportcontrolledinformationtoFoundationwithoutthewrittenauthorizationofFoundation.

CONFIDENTIALITY
ConfidentialInformation.AsusedinthisAgreement,“ConfidentialInformation”willmeanconfidentialorproprietaryinformationexchangedbetweenthepartieshereunderandrelatingtotheTechnologyortheperformanceoftheobligationssetforthherein,includingwithoutlimitation:(i)writtenorothertangibleinformationmarkedasconfidentialorproprietary;(ii)orallydisclosedinformationthatisidentifiedasconfidentialandsummarizedinanoticedeliveredwithinthirty(30)daysofthedisclosure;and(iii)informationthatshouldreasonablybeconsideredconfidentialunderthecontextinwhichthedisclosureismade(i.e.,nonpublicpatentinginformationandnonpublicinfringementinformation).
ConfidentialityObligations.Eachpartyagreesto:(i)maintaintheotherparty’sConfidentialInformationwiththesamelevelofcareasitdoesitsownvaluableandsensitiveinformationofasimilarnatureand,inanyevent,withnotlessthanareasonabledegreeofcare;and(ii)notdisclosetheotherparty’sConfidentialInformationtoanyotherparty,withoutthepriorwrittenconsentofthedisclosingparty.Eachpartyagreestolimititsuseoftheotherparty’sConfidentialInformationtothepurposespermittedbythisAgreement.TheobligationofconfidentialityunderthisSection17.2shallcontinueforfive(5)yearsfromtheexpirationorterminationofthisAgreement.
Exceptions.TheobligationsofeitherpartyunderSection17.2willnotapplytoinformationthatthereceivingpartycandemonstrate:(i)wasinitspossessionatthetimeofdisclosureandwithoutrestrictionastoconfidentiality;(ii)atthetimeofdisclosureisgenerallyavailabletothepublicorafterdisclosurebecomesgenerallyavailabletothepublicthroughnobreachofagreementorotherwrongfulactbythereceivingparty;(iii)hasbeenreceivedfromathirdpartywithoutrestrictionondisclosureandwithoutbreachofagreementorotherwrongfulactbythereceivingpartyunlessthereceivingpartyshouldreasonablyconcludethattheinformationisConfidentialInformation;(iv)isindependentlydevelopedbythereceivingpartywithoutregardtotheConfidentialInformationoftheotherparty;or(v)isrequiredtobedisclosedbylawororderofacourtofcompetentjurisdictionorregulatoryauthority;provided,however,thereceivingpartyshall:(a)givedisclosingparty,totheextentpossible,advancenoticepriortodisclosuresothedisclosingpartymaycontestthedisclosureorseekaprotectiveorder;and(b)limitthedisclosuretotheminimumConfidentialInformationthatislegallyrequiredtobedisclosed.
InjunctiveRelief.Thepartiesagreethatthebreach,orthreatenedbreach,ofanyoftheconfidentialityprovisionsofthisArticle17maycauseirreparableharmwithoutadequateremedyatlaw.Uponanysuchbreachorthreatenedbreach,LicenseeorFoundationwillbeentitledtoinjunctiverelieftopreventtheotherpartyfromcommencingorcontinuinganyactionconstitutingsuchbreach,withouthavingtopostabondorothersecurityandwithouthavingtoprovetheinadequacyofotheravailableremedies.NothinginthisSectionwilllimitanyotherremedyavailabletoeitherparty.

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MISCELLANEOUS
GoverningLaw.ThisAgreementwillbeconstrued,governed,interpretedandappliedinaccordancewiththelawsoftheStateofNewYork,exceptthatquestionsaffectingtheconstructionandeffectofanypatentwillbedeterminedbythelawofthecountryinwhichthepatentwasgranted.ThepartiesconsenttotheexclusivepersonaljurisdictionofthestateandfederalcourtsoftheStateofNewYork.
EntireAgreement.ThisAgreement,includinganyExhibitsorattachmentshereto,embodiestheentireagreementandunderstandingamongthepartiestothisAgreementandsupersedesallprioragreementsandunderstandingsrelatingtothesubjectmatterofthisAgreement.NoneofthetermsorprovisionsofthisAgreementmaybealtered,modified,oramendedexceptbytheexecutionofawritteninstrumentsignedbythepartieshereto.
Severability.TheprovisionsofthisAgreementareseverable,andintheeventthatanyprovisionsofthisAgreementaredeterminedtobeinvalidorunenforceableunderanycontrollingbodyoflaw,suchinvalidityorunenforceabilitywillnotinanywayaffectthevalidityorunenforceabilityoftheremainingprovisionshereof.
Construction.BothpartiescontributedequallytothedraftingofallpartsofthisAgreementandagreetoallofthetermsherein.BothpartiesreviewedthisAgreement thoroughly prior to execution.
Notices.Allnotices,requests,consents,andothercommunicationstobeprovidedunderthisAgreementmustbeinwritingandwillbedeliveredinpersonorsentovernightdeliverybyanationallyrecognizedcourierorbycertifiedorregisteredmail,returnreceiptrequested,totheaddressesprovidedbelow,andwillbedeemedtohavebeengivenwhenhanddelivered,one(1)dayaftermailingwhenmailedbyovernightcourier,orfive(5)daysaftermailingbyregisteredorcertifiedmail:

IftoLicensee,to:

______

IftoFoundation,to:

Attn:Director

18.6.NoWaiver.Nowaiverbyeitherpartyheretoofanybreachordefaultofanyofthecovenantsoragreementshereinsetforthwillbedeemedawaiverastoanysubsequentorsimilarbreachordefault.

18.7.PatentMarking.Asrequiredbylaw,Licenseewillmark,andwillcauseitsAffiliatesandSublicenseestomark,allLicensedProductsthataremanufacturedorsoldunderthisAgreementwith:(i)thenumberofeachissuedpatentunderthePatentRightsthatappliestosuchLicensedProduct;or(ii)theword‘patent’ortheabbreviation‘pat.’togetherwithanaddressofapostingontheInternet,accessibletothepublicwithoutchargeforaccessingsuchaddress,thatassociatessuchLicensedProductwiththenumberoftheissuedpatentunderthePatentRights.

18.8.IndependentParties.ThisAgreementwillnotbeconstruedascreatingarelationshipofemployment,agency,partnership,jointventure,oranyotherformoflegalassociationbetweenLicenseeandFoundation.Therelationshipbetweenthepartiesshallneverbeconstruedtobethatofemployer-employee.Neitherpartyhasanypowertobindtheotherpartyortoassumeortocreateanyobligationorresponsibilityonbehalfoftheotherpartyorintheotherparty’sname.

18.9.ForceMajeure.NeitherpartywillbeliableforfailureordelayoffulfillmentofallorpartofthisAgreement,directlyorindirectlyowingtoactsofnature,governmentalordersorrestriction,war,warlikeconditions,revolution,riot,looting,strike,lockout,fire,flood,oranyothercauseorcircumstances beyond the parties’ control.

18.10.Headings.Theheadingsofthearticlesandsectionsareinsertedforconvenienceofreferenceonly,andarenotintendedtoinfluencetheinterpretationofthisAgreement.

18.11.Counterparts.ThisAgreementmaybeexecutedintwoormorecounterparts,eachofwhichwillbedeemedanoriginal,butallofwhichtogetherwillconstituteoneandthesameinstrument.Further,eitherParty’ssignaturetoacopyofthisAgreementwillbedeemedasignatureto,andmaybeattachedto,anyotheridenticalcopyoftheAgreement.Facsimileorelectronicsignatureswillbeasbindingandeffectiveasoriginalsignatures.

[Signaturepagetofollow]

INWITNESSWHEREOF,thepartieshavecausedthisAgreementtobeexecutedbytheirdulyauthorizedrepresentatives.

a.LICENSEETHERESEARCHFOUNDATIONFOR

THESTATEUNIVERSITYOFNEWYORK

By:______By:______

[NAME,TITLE][NAME,TITLE]

Date:______,20__Date:______,20__

EXHIBITA:
FieldofUseandTerritory

AuthorizedFieldsofUse:

Territory:

EXHIBITB:
LicensedPatents

PatentorApplicationNumber / Location/TypeofPatentorPatentApplication / Title(RFDocketNumber) / Filed / Issued / Assignee / Inventors / Sponsor

EXHIBITC:
KnowHow

EXHIBITD:
CommercializationPlan

Insertdescriptionofcommercializationplanandkeymilestones.

MILESTONE / COMPLETIONDATE

SCHEDULE1:

FORMOFCONVERTIBLEPROMISSORYNOTE

[GENERALINSTRUCTIONS:

OnlyusethisnotewhereaTechnologyLicenseAgreementisbeingexecutedandtheupfrontfee(orotherfeepaidincash)isbeingpaidwithaconvertiblenote,insteadofcash.

Donotmakechangestothisform(otherthanasadvisedintheform)withoutcontactingRFOfficeofGeneralCounsel.

Thisisdraftedasanunsecurednote.IftheFoundationdesiressecurityforpayment,pleasecontactRFOfficeofGeneralCounsel.

donotcirculatebeforedeletingallinstructionshighlightedinyellow.

Dofillinallblankshighlightedinyellow.

Considerwhetherthepartiesshouldexecute,oragreetoexecuteRF’sformofstockholders’agreementtobeeffectiveshouldRFconvert.

CONVERTIBLEPROMISSORYNOTE

[INSERTAMOUNT][INSERTDATE]

FORVALUERECEIVED,[INSERTNAMEOFLICENSEE],a[STATE][INSERTTYPEOFENTITY],withaprimaryaddressat[INSERTADDRESS](the“Company”),herebyunconditionallypromisestopaytotheorderofTheResearchFoundationforTheStateUniversityofNewYork,onbehalfof[INSERTCAMPUS],anon-profiteducationalcorporation,organizedandexistingunderthelawsoftheStateofNewYork,havingofficesat[INSERTADDRESS](the“Lender”),inlawfulmoneyoftheUnitedStatesofAmericaandinimmediatelyavailablefunds,theprincipalsumof[______dollars($______)](the“PrincipalAmount”),togetherwithaccruedandunpaidinterestthereon,payableonthedatesandinthemannersetforthbelow(the“Loan”).ThisnoteisbeingissuedpursuanttothatcertainExclusiveLicenseAgreementbyandamongtheCompanyandtheLender,datedasof[INSERTDATEOFLICENSE](the“LicenseAgreement”),whereby,theCompanyagreedtoissuethisnoteaspaymentofthe[upfrontfeeunderSection3.1oftheLicenseAgreement].

1.PrincipalRepayment.SubjecttotheearlierconversionofthisnoteunderSection5below,theoutstandingPrincipalAmountoftheLoanandallaccruedandunpaidinterestthereonshallbedueandpayablebyCompanyonthe[______]anniversaryofthedatehereof(the“DueDate”).TheCompanymayprepaythisnoteinwholewithoutpenaltyorpremium;providedthattheCompanyfirstprovidetheLenderwiththirty(30)days’writtennoticeofitsintentiontomakesuchprepayment,duringwhichthirty(30)dayperiod,theLendermayexerciseitsrightswithrespecttotheconversionofthisnoteunderSection5below.

2.InterestRate.TheCompanyfurtherpromisestopayinterestonthesumoftheunpaidPrincipalAmountoutstandingoneachday,fromthedateofthisnoteuntiltheentirePrincipalAmountshallhavebeenrepaidinfullorconvertedunderSection5ofthisnote,whichinterestshallaccrueatarateequalto[INSERTINTERESTRATE]perannum;provided,however,thatupontheoccurrenceofanEventofDefault(asdefinedherein)interestshallaccrueatarateequalto[INSERTDEFAULTINTERESTRATE]perannumforsolongassuchEventofDefaultiscontinuing.Interestshallbepayableatmaturityandshallbecalculatedonthebasisofa365-dayyearfortheactualnumberofdayselapsed.Allaccruedandunpaidinterestshallbedueandpayableonanydateonwhichtheoutstandingprincipalbalanceisdue(whetherbyacceleration,maturityorotherwise).

Innoeventshalltheamountofinterestdueorpayableunderthisnoteexceedthemaximumrateofinterestallowedbyapplicablelawand,intheeventanysuchpaymentisinadvertentlypaidbytheCompanyorinadvertentlyreceivedbytheLender,thensuchexcesssumshallbecreditedasapaymentofprincipal.

3.PlaceofPayment.AllamountspayablehereundershallbepayabletotheLenderattheLender’saddressassetforthaboveorsuchotheraddressastheLenderspecifiestotheCompanyinwriting.

4.ApplicationofPayments.Paymentonthisnoteshallbeappliedfirsttocostsandexpensesofcollection,ifany,andthentoaccruedinterest,andthereaftertotheoutstandingprincipalbalancehereof.

5.Conversion.

(a)OptionalConversion.Thisnote(includingalloftheamountsduehereunder,includingthePrincipalAmountandtheaccruedandunpaidinterestthereon)maybeconverted,attheoptionoftheLender,intotheCompany’s[INSERTTYPEOFSECURITY,E.G.,COMMONSTOCK](the“EquitySecurities”).ThenumberofEquitySecuritiesissuabletotheholderofthisnoteuponconversionthereofpursuanttothisSection5(a)shallbeequaltotheoutstandingPrincipalAmounttogetherwiththeaccruedbutunpaidinterestthereondividedby[INSERTDOLLARAMOUNTORFORMULA,SUCHASthelowestpriceperunitatwhichEquitySecuritieswerepurchasedbyathird-partyinabona-fide,arm’slengthtransactionthatclosedonadatethatistheclosestdatepriortotheeffectivedateofsuchconversion].

(b)ConversionUponAcquisition.

(i)IftheCompanyproposestoconsummateatransactionwhichconstitutesa“SaleorMerger”(asdefinedbelow)priortotheDueDateandthisnotehasnotbeenpreviouslypaidorconvertedthentheLendermay,atitsoption,(1)convertthisnote(includingalloftheamountsduehereunder,includingthePrincipalAmountandtheaccruedandunpaidinterestthereon)intoEquitySecurities,whichsuchconversionshallbeeffectiveimmediatelypriortotheconsummationoftheSaleorMerger,or(2)declarealloutstandingprincipalandaccruedbutunpaidinterestthereonimmediatelydueandpayableuponconsummationoftheSaleorMerger.ThenumberofEquitySecuritiesissuabletotheholderofthisnoteupontheconversionofthenote,ifatall,attheelectionoftheLender,asprovidedinthisSection5(b)inconnectionwithaSaleorMerger,shallbeequaltotheoutstandingPrincipalAmounttogetherwiththeaccruedbutunpaidinterestthereondividedby[INSERTDOLLARAMOUNTORFORMULA,SUCHASthelowestpriceperunitatwhichEquitySecuritieswerepurchasedbyathird-partyinabona-fide,arm’slengthtransactionthatclosedonadatethatistheclosestdatepriortotheeffectivedateofsuchconversion].

(ii)A“SaleorMerger”shallmeananyofthefollowing:(1)themergerorconsolidationoftheCompanyintoorwithanotherentityinwhichtheownersoftheCompanyimmediatelyprecedingsuchmergerorconsolidation(solelybyvirtueoftheirsecuritiesoftheCompany)shallownlessthanfiftypercent(50%)ofthevotingsecuritiesofthesurvivingentity;(2)thesale,transfer,licenseorlease,whetherinasingletransactionorpursuanttoaseriesofrelatedtransactionsorplan,ofallorsubstantiallyalltheassetsoftheCompany;(3)asaleortransferoffiftypercent(50%)ormoreoftheCompany’soutstandingvotingsecurities(whetherthroughactualorbeneficialownership);or(4)aninitialpublicofferingofLicensee’sstockpursuanttoaneffectiveregistrationstatementundertheSecuritiesActof1933.

(c)MechanicsofConversion.

(i)ThenumberofEquitySecuritiesissuabletotheholderofthisNotepursuanttothisSection5arehereinafterreferredtoasthe“ConversionSecurities.”

(ii)Aspromptlyaspracticableaftertheconversiondate(butinnocaselaterthanfive(5)businessdaysthereafter),theCompany,atitsexpense,willissueanddelivertotheLenderacertificateorcertificatesfortheConversionSecurities.Uponconversionanddeliveryofsuchcertificateorcertificates,(1)thisnoteshallbecomefullypaidandsatisfied,and(2)theLendershallsurrenderthisnote,dulyendorsedas“PaidinFull”,totheCompany.Forpurposesofthisnote,theterm“businessday”meansanydaythatisnotaSaturday,Sunday,legalholidayorotherdayonwhichbanksarerequiredtobeclosedinNewYork,NewYork.

(iii)TheCompanyshallprovidetheLenderwithatleastfifteen(15)businessdays’priorwrittennoticeofanyproposedSaleorMerger;suchwrittennoticetocontainthematerialtermsofanysuchSaleorMerger,includingthevaluationoftheCompanyortheconsiderationreceivableinsuchSaleorMerger.Ifapplicable,theLendershallprovideitswrittenelectiontotheCompanytoconvertthisnotewithinten(10)businessdaysofthereceiptofthenoticebytheCompanyofsuchSaleorMerger;suchelectiontoconverttheNotetobecontingentupontheconsummationofanysuchSaleorMerger.[FailuretogivesuchnoticewithinsuchperiodshallmeanthattheLenderhaswaiveditsrighttoconvertthisnoteassetforthhereinandtheoutstandingprincipalandaccruedbutunpaidinterestonthisnoteshallbeimmediatelydueandpayableuponconsummationoftheSaleorMerger][NOTE:Considerwhetherthedefaultruleshouldbethatconversionisautomatic]

(d)IssueTaxes.TheCompanyshallpayanyandallissueandothertaxesthatmaybepayableinrespectofanyissuanceordeliveryoftheConversionSecurities.

(e)AuthorizationandReservationofEquitySecuritiesIssuableUponConversion.TheissuanceoftheEquitySecuritiesfromtimetotimeissuableuponconversionofthisnoteisauthorizedbytheCompany’sorganizationaldocumentsandshallbereservedbytheCompanyforissuancetotheLenderuponconversionofthisnote.Furthermore,ifatanytimethenumberofauthorizedEquitySecuritiesshallnotbesufficienttoeffecttheconversionofthisnote,theCompanyshallpromptlytakesuchactionasisnecessarytoensurethattherequisitenumberofEquitySecuritiesareavailableforissuancetotheLenderuponconversionhereof,including,withoutlimitation,obtainingtherequisiteownerapprovalofanynecessaryamendmentstoCompany’sorganizationaldocuments.TheissuanceofthisnotehasbeenapprovedbytheownersoftheCompany.

TheCompanycovenantsandagreesthatallConversionSecuritieswill,uponissuance,bevalidlyissuedandoutstanding,fullypaidandnonassessable,andfreefromalltaxes,liensandchargeswithrespecttotheissuancethereof.

6.EventsofDefault;Remedies.

(a)EventsofDefault.Eachofthefollowingeventsshallconstitutean“EventofDefault”underthisnote:

(i)failureoftheCompanytopayanyprincipal,interestorotheramountduehereunderwhendue,ortheCompanyshallinanywayfailtocomplywiththeotherterms,covenantsorconditionscontainedinthisnote;

(ii)adefaultoreventofdefaultshallhaveoccurredunderanyothercontractoragreementnoworhereafterenteredintobetweentheCompanyandtheLenderorexecutedbytheCompanyinfavoroftheLender;

(iii)afinaljudgmentororderforthepaymentofmoney,oranyfinalordergrantingequitablerelief,shallbeenteredagainsttheCompanyandsuchjudgmentororderhasorwillhaveamateriallyadverseeffectonthefinancialconditionoftheCompany;

(iv)awarrant,writofattachment,levyorothersimilarprocessshallbeissuedagainstanypropertyoftheCompany;

(v)theCompanyshall(1)commenceavoluntarycaseundertheBankruptcyCodeof1978,asamendedorotherfederalbankruptcylaw(asnoworhereafterineffect);(2)fileapetitionseekingtotakeadvantageofanyotherlaws,domesticorforeign,relatingtobankruptcy,insolvency,reorganization,windinguporcompositionforadjustmentofdebts;(3)consenttoorfailtocontestinatimelyandappropriatemanneranypetitionfiledagainstitinaninvoluntarycaseundersuchbankruptcylawsorotherlaws;(4)applyfororconsentto,orfailtocontestinatimelyandappropriatemanner,theappointmentof,orthetakingofpossessionby,areceiver,custodian,trustee,orliquidatorofitselforofasubstantialpartofitsproperty,domesticorforeign;(e)beunableto,oradmitinwritingitsinabilityto,payitsdebtsastheybecomedue;(f)makeageneralassignmentforthebenefitofcreditors;or(5)makeaconveyancefraudulentastocreditorsunderanystate,federalorforeignlaw;or

(vi)acaseorotherproceedingshallbecommencedagainsttheCompanyinanycourtofcompetentjurisdictionseeking(1)reliefundertheBankruptcyCodeof1978,asamendedorotherfederalbankruptcylaw(asnoworhereafterineffect)orunderanyotherlaws,domesticorforeign,relatingtobankruptcy,insolvency,reorganization,windinguporadjustmentofdebtsor(2)theappointmentofatrustee,receiver,custodian,liquidatororthelikefortheCompanyoralloranysubstantialpartoftheassets,domesticorforeign,oftheCompany,andsuchcaseorotherproceedingisnotdismissedwithinsixty(60)daysafteritscommencement.

(b)Remedies.

(i)UpontheoccurrenceofanEventofDefault(otherthananEventofDefaultdescribedinSection6(a)(v)orSection6(a)(vi),theLoanandtheotherobligationsofCompanyhereunder,attheoptionoftheLender,andwithoutdemandornoticeofanykind,maybeimmediatelydeclared,andthereuponshallimmediatelybecomeindefaultanddueandpayableandtheLendermayexerciseanyandallrightsandremediesavailabletoitatlaw,inequityorotherwise.

(ii)UpontheoccurrenceofanEventofDefaultdescribedinSection6(a)(v)orSection6(a)(vi),theLoanandtheotherobligationsoftheCompanyhereunder,withoutdemandornoticeofanykind,shallimmediatelybecomeindefaultanddueandpayableandtheLendermayexerciseanyandallrightsandremediesavailabletoitatlaw,inequityorotherwise.

(c)CostsofCollection.TheCompanyshallpayallreasonableexpensesincurredbytheLenderinthecollectionofthisnote,including,withoutlimitation,thereasonablefeesanddisbursementsoflegalcounseltotheLender.

9.Miscellaneous.

(a)Waivers.

(i)TrialbyJury.THECOMPANYANDTHELENDER,BYACCEPTINGTHISNOTE,EACHACKNOWLEDGESTHATANYDISPUTEORCONTROVERSYBETWEENCOMPANYANDLENDERWOULDBEBASEDONDIFFICULTANDCOMPLEXISSUESOFLAWANDFACT.ACCORDINGLY,THELENDERANDTHECOMPANYHEREBYWAIVETRIALBYJURYINANYACTIONORPROCEEDINGOFANYKINDORNATUREINANYCOURTORTRIBUNALINWHICHANACTIONMAYBECOMMENCEDBYORAGAINSTTHECOMPANYARISINGOUTOFTHISNOTEORBYREASONOFANYOTHERCAUSEORDISPUTEWHATSOEVERBETWEENTHECOMPANYANDTHELENDEROFANYKINDORNATURE.

(ii)JurisdictionandVenue.THECOMPANYANDTHELENDER,BYACCEPTINGTHISNOTE,HEREBYAGREETHATANYFEDERALCOURTORANYSTATECOURTLOCATEDINTHESTATEOFNEWYORKSHALLHAVEJURISDICTIONTOHEARANDDETERMINEANYCLAIMSORDISPUTESBETWEENCOMPANYANDLENDERPERTAININGDIRECTLYORINDIRECTLYTOTHISNOTEORANYOTHERCAUSEORDISPUTEWHATSOEVERBETWEENCOMPANYANDLENDEROFANYKINDORNATURE.COMPANYEXPRESSLYSUBMITSANDCONSENTSINADVANCETOSUCHJURISDICTIONINANYACTIONORPROCEEDINGCOMMENCEDINSUCHCOURTS,HEREBYWAIVINGPERSONALSERVICEOFTHESUMMONSANDCOMPLAINT,OROTHERPROCESSORPAPERSISSUEDTHEREIN,ANDAGREEINGTHATSERVICEOFSUCHSUMMONSANDCOMPLAINT,OROTHERPROCESSORPAPERSMAYBEMADEBYREGISTEREDORCERTIFIEDMAIL,RETURNRECEIPTREQUESTEDADDRESSEDTOTHECOMPANYATTHEADDRESSSETFORTHHEREIN.SHOULDTHECOMPANYFAILTOAPPEARORANSWERANYSUMMONS,COMPLAINT,PROCESSORPAPERSSOSERVEDWITHINTHIRTYDAYSAFTERTHEMAILINGTHEREOF,ITSHALLBEDEEMEDINDEFAULTANDANORDERAND/ORJUDGMENTMAYBEENTEREDAGAINSTITASPRAYEDFORINSUCHSUMMONS,COMPLAINT,PROCESSORPAPERS.THECHOICEOFFORUMSETFORTHINTHISSECTIONSHALLNOTBEDEEMEDTOPRECLUDETHEBRINGINGOFANYACTIONBYLENDERORTHEENFORCEMENTBYLENDEROFANYJUDGMENTOBTAINEDINSUCHFORUMINANYOTHERAPPROPRIATEJURISDICTION.FURTHER,COMPANYHEREBYWAIVESTHERIGHTTOASSERTTHEDEFENSEOFFORUMNONCONVENIENSANDTHERIGHTTOCHALLENGETHEVENUEOFANYCOURTPROCEEDING.

THECOMPANYAGREESTHATALLOFTHEIRPAYMENTOBLIGATIONSHEREUNDERSHALLBEABSOLUTE,UNCONDITIONALAND,FORTHEPURPOSESOFMAKINGPAYMENTSHEREUNDER,COMPANYHEREBYWAIVESANYRIGHTTOASSERTANYSETOFF,COUNTERCLAIMORCROSS-CLAIM.

THEFOREGOINGWAIVERSHAVEBEENMADEWITHTHEADVICEOFCOUNSELANDWITHAFULLUNDERSTANDINGOFTHELEGALCONSEQUENCESTHEREOF.

NodelayorfailureonthepartoftheLenderintheexerciseofanyrightorremedyshalloperateasawaiverthereof,andnosingleorpartialexercisebytheLenderofanyrightorremedyshallprecludeotherorfurtherexercisethereofortheexerciseofanyotherrightorremedy.NomodificationorwaiverofanyprovisionofthisnoteorconsenttodeparturetherefromshallbeeffectiveunlessinwritingandsignedbytheCompanyandtheLender.

(b)BindingAgreement;Assignment.Thetermsandconditionsofthisnoteshallinuretothebenefitofandbebindingupontherespectivesuccessorsandpermittedassignsoftheparties.Nothinginthisnote,expressorimplied,isintendedtoconferuponanythirdpartyanyrights,remedies,obligations,orliabilitiesunderorbyreasonofthisNote,exceptasexpresslyprovidedinthisnote.ThisNotemaynotbeassignedbyanypartyheretowithoutthepriorwrittenconsentofallotherpartieshereto;provided,however,thatLendermayassignthisnotewithwrittennoticetotheCompany.

(c)GoverningLaw.THISNOTESHALLBEGOVERNEDBY,ANDCONSTRUEDINACCORDANCEWITH,THELAWSOFTHESTATEOFNEWYORKANDNOCONFLICTSOFLAWPRINCIPLESWILLAPPLYTOTHISNOTE.

(d)TitlesandSubtitles.Thetitlesandsubtitlesusedinthisnoteareusedforconvenienceonlyandarenottobeconsideredinconstruingorinterpretingthisnote.

(e)Notices.Anynoticetobegivenhereundershallbeinwriting,andshallbesenttoLenderorCompany,asthecasemaybe,attheaddressessetforthhereinandshallbedeemedreceived(i)ontheearlierofthedateofreceiptorthedatethree(3)businessdaysafterdepositofsuchnoticeintheUnitedStatesmail,ifsentpostageprepaid,certifiedmail,returnreceiptrequested,(ii)one(1)businessdayafterdispatchifsentforovernightdeliverybyanationallyrecognizedovernightcourier,or(iii)whenactuallyreceived,ifpersonallydelivered.

(f)Counterparts.Thisnotemaybeexecutedinanynumberofcounterparts,eachofwhichshallbedeemedanoriginal,butallofwhichtogethershallconstituteoneandthesameinstrument.Forthepurposesofexecutingthisnote,(i)adocumentsignedandtransmittedbyfacsimile,telecopier,emailorotherelectronictransmissionshallbetreatedasanoriginaldocument;(ii)thesignatureofanypartyonsuchdocumentshallbeconsideredasanoriginalsignature;(iii)thedocumenttransmittedshallhavethesameeffectasacounterpartthereofcontainingoriginalsignatures;and(iv)attherequestoftheLender,theCompanyshallprovideanoriginalsignaturetoLender.Nopartymayraiseasadefensetotheenforcementofthisnotethatafacsimile,telecopier,emailorotherelectronictransmissionwasusedtotransmitanysignatureofapartytothisnote.

(g)Severability.Itisthedesireandintentofthepartiesthattheprovisionsofthisnotebeenforcedtothefullestextentpermissibleunderthelawandpublicpoliciesappliedineachjurisdictioninwhichenforcementissought.Accordingly,intheeventthatanyprovisionofthisnotewouldbeheldinanyjurisdictiontobeinvalid,prohibitedorunenforceableforanyreason,suchprovision,astosuchjurisdiction,shallbeineffective,withoutinvalidatingtheremainingprovisionsofthisnoteoraffectingthevalidityorenforceabilityofsuchprovisioninanyjurisdiction.Notwithstandingtheforegoing,ifsuchprovisioncouldbemorenarrowlydrawnsoasnottobeinvalid,prohibitedorunenforceableinsuchjurisdiction,itshall,astosuchjurisdiction,besonarrowlydrawn,withoutinvalidatingtheremainingprovisionsofthisnoteoraffectingthevalidityorenforceabilityofsuchprovisioninanyotherjurisdiction.

***

SIGNATUREPAGETOCONVERTIBLEPROMISSORYNOTE

INWITNESSWHEREOF,theundersignedhaveexecutedthisNoteasofthedatefirstwrittenabove.

b.[COMPANY]THERESEARCHFOUNDATIONFOR

THESTATEUNIVERSITYOFNEWYORK

By:______By:______

[NAME,TITLE][NAME,TITLE]

Date:______Date:______

SCHEDULE2:

Optionrights

UponwrittenrequestfromFoundation,andwithoutthepaymentorprovisionofanyadditionalconsiderationbyFoundation,LicenseewillissuetoFoundationsuchnumberofsharesofcommonstockofLicenseeaswillcauseFoundationtoownsharesofcommonstockrepresentingatleast<number>percent(<#>%)oftheoutstandingsharesofthecapitalstockofLicenseeonafullydilutedbasisthrough<number>U.S.dollars($<#>)ofcumulativethirdpartyequityfinancingsofLicensee(the“FoundationCommonStock”).TheFoundationCommonStockwillbeissuedpursuanttoFoundation’sstandardequitydocumentation(whichisattachedtothisSchedule2)andwillincludearedemptionrightexercisableuponcertaintriggerevents.TheissuanceoftheFoundationCommonStockisauthorizedbyLicensee’sorganizationaldocumentsandshallbereservedbyLicenseeforissuancetoFoundationasprovidedherein.Furthermore,ifatanytimethenumberofauthorizedcommonstockofLicenseeshallnotbesufficienttoeffecttherightsofFoundationsetforthherein,LicenseeshallpromptlytakesuchactionasisnecessarytoensurethattherequisitenumberofsharesofFoundationCommonStockareavailableforissuancetoFoundationasprovidedherein,including,withoutlimitation,obtainingtherequisiteshareholderapprovalofanynecessaryamendmentstoLicensee’sorganizationaldocuments.LicenseeshallpayanyandallissueandothertaxesthatmaybepayableinrespectofanyissuanceordeliveryoftheFoundationCommonStock.LicenseecovenantsandagreesthatallFoundationCommonStockwill,uponissuance,bevalidlyissuedandoutstanding,fullypaidandnonassessable,andfreefromalltaxes,liensandchargeswithrespecttotheissuancethereof.

LicenseeshallprovideFoundationwithatleastfifteen(15)businessdays’priorwrittennoticeofanyproposedSaleorMerger(definedbelow);suchwrittennoticetocontainthematerialtermsofanysuchSaleorMerger,includingthevaluationofLicenseeortheconsiderationreceivableinsuchSaleorMerger.LicenseeshallnotconsummateanySaleorMergerwithoutthewrittenconsentofFoundation.

A“SaleorMerger”shallmeananyofthefollowing:(a)themergerorconsolidationofLicenseeintoorwithanotherentityinwhichtheownersofLicenseeimmediatelyprecedingsuchmergerorconsolidation(solelybyvirtueoftheirsecuritiesofLicensee)shallownlessthanfiftypercent(50%)ofthevotingsecuritiesofthesurvivingentity;(b)thesale,transfer,licenseorlease,whetherinasingletransactionorpursuanttoaseriesofrelatedtransactionsorplan,ofallorsubstantiallyalltheassetsofLicensee;(3)asaleortransferoffiftypercent(50%)ormoreofLicensee’soutstandingvotingsecurities(whetherthroughactualorbeneficialownership);or(4)aninitialpublicofferingofLicensee’sstockpursuanttoaneffectiveregistrationstatementundertheSecuritiesActof1933.

[ATTACHFoundation’sstandardequityDOCUMENTATION]

SCHEDULE3:

LIMITEDLIABILITYCOMPANYOPERATINGAGREEMENT

[GENERALINSTRUCTIONS:

OnlyusethisagreementwithaninvestmentinmembershipinterestsofalimitedliabilitycompanywhereaTechnologyLicenseAgreementisbeingexecutedandthelimitedliabilitycompanyisbeingformed.

Ifthelimitedliabilityisalreadyformedandhasanoperatingagreement,thatoperatingagreementshouldbeconformedascloselyaspossibletothetermsofthisoperatingagreement.

Donotmakechangestothisform(otherthanasadvisedinthisagreement)oragreetothetermsofanotheroperatingagreementwithoutcontactingRFOfficeofGeneralCounsel.

donotcirculatebeforedeletingallinstructionshighlightedinyellowandallfootnotes.

Dofillinallblankshighlightedinyellow.

Docheckallsectionandarticlenumberingthroughoutthedocument.

DocompleteScheduleAwithallrequiredinformation.

OPERATINGAGREEMENTOF

[INSERT:Fullnameoflimitedliabilitycompany]

ANEWYORKLIMITEDLIABILITYCOMPANY

Dated[______],20[__]

OPERATINGAGREEMENT

ThisOperatingAgreementof[INSERT:Fullnameoflimitedliabilitycompany]iseffectiveasofthe[____]dayof[______],20[__],byandamongtheCompanyeachofthePersonssigningthisOperatingAgreementasMembers.

ARTICLE IBACKGROUND

[Tailorthissectiontoreflecttheactualbackgroundofthedeal.]

A.ConcurrentlywiththeexecutionofthisOperatingAgreement,TheResearchFoundationofStateUniversityofNewYork,onbehalfof[______],aNewYorknonprofitcorporation(“Foundation”),isenteringintoanTechnologyLicenseAgreementwiththeCompanyeffectiveasof[______],20[__](the“LicenseAgreement”)underwhichFoundationislicensingtotheCompanycertaintechnologyownedbyFoundation.

B.InpartialconsiderationfortheexecutionanddeliverybyFoundationoftheLicenseAgreement,thepartieshaveagreedtoenterintothisOperatingAgreement.

C.ConcurrentlywiththeexecutionofthisAgreement,FoundationisenteringintoaUnitsPurchaseAgreementwiththeCompanyeffectiveasof[______],20[__](the“UnitsPurchaseAgreement”)underwhich,inpartialconsiderationfortheexecutionanddeliveryoftheLicenseAgreementbyFoundation,theCompanyhasagreedtoissuetoFoundationcertainClassAUnits.

D.NOWTHEREFORE,inconsiderationoftheagreementsandmutualpromisesandcovenantssetforthinthisAgreement,theparties,intendingtobelegallybound,agreeasfollows:

ARTICLE IIDEFINITIONS

AsusedinthisOperatingAgreementthefollowingtermsshallhavethemeaningsindicated,othertermsaredefinedelsewhereinthisOperatingAgreement:

“AdjustedCapitalAccountDeficit”shallmean,withrespecttoanyMember,thedeficitbalance,ifany,insuchMember’sCapitalAccountasoftheendoftherelevantfiscalyear,aftergivingeffecttothefollowingadjustments:(a)credittosuchCapitalAccountanyamountswhichsuchMemberisobligatedtorestorepursuanttoanyprovisionofthisAgreementorisdeemedtobeobligatedtorestorepursuanttothenexttothelastsentencesofRegulationsSections1.704-2(g)(1)and1.704-2(i)(5)aftertakingintoaccountanychangesduringsuchyearinCompanyMinimumGainandMemberMinimumGain;and(b)debittosuchCapitalAccounttheitemsdescribedinSections1.704-1(b)(2)(ii)(d)(4),(5)and(6)oftheRegulations.TheforegoingdefinitionofAdjustedCapitalAccountDeficitisintendedtocomplywiththeprovisionsofSection1.704-1(b)(2)(ii)(d)oftheRegulationsandshallbeinterpretedconsistentlytherewith.

“ArticlesofOrganization”shallmeantheArticlesofOrganizationoftheCompanyfiledwiththeSecretaryofStateoftheStateofNewYorkpursuanttotheNewYorkL.L.C.Law.

“Board”shallmeantheBoardofDirectorsoftheCompanyasdescribedinArticleIV,exercisingtheirauthorityasmanagersundertheL.L.C.LawinthemannersetforthinthisAgreement.

“BookDepreciation”shallmeanthedepreciation,costrecoveryoramortizationofassetsallowabletotheCompanywithrespecttoanassetforanyperiod,exceptthatif(a)withrespecttoanyassettheBookValueofwhichdiffersfromitsadjustedtaxbasisforfederalincometaxpurposesatthebeginningofsuchperiodandwhichdifferenceisbeingeliminatedbyuseofthe“remedialmethod”asdefinedbySection1.704-3(d)oftheRegulations,BookDepreciationforsuchperiodshallbetheamountofbookbasisrecoveredforsuchperiodundertherulesprescribedbySection1.704-3(d)(2)oftheRegulations,and(b)withrespecttoanyotherassettheBookValueofwhichdiffersfromitsadjustedbasisforfederalincometaxpurposesatthebeginningofsuchperiod,BookDepreciationshallbeanamountwhichbearsthesameratiotosuchbeginningBookValueasfederalincometaxdepreciation,amortization,orothercostrecoverydeductionforsuchperiodbearstosuchbeginningadjustedbasis;provided,however,thatinthecaseofclause(b)above,iftheadjustedbasisforfederalincometaxpurposesofanassetatthebeginningofsuchperiodiszero,BookDepreciationshallbedeterminedwithreferencetosuchbeginningBookValueusinganyreasonabledepreciationmethodselectedbytheBoardofManagers.

“BookGainorBookLoss”shallmeanthegainorlossthatwouldberecognizedbytheCompanyforfederalincometaxpurposesasaresultofsalesorexchangesofitsassetsifitstaxbasisinsuchassetswereequaltotheBookValueofsuchassets.

“BookValue”shallmean,withrespecttoanyasset,theasset’sadjustedbasisforfederalincometaxpurposes,exceptasfollowsandasadjustedinaccordancewiththisAgreement:

(a)TheinitialBookValueofanyassetcontributedbyaMembertotheCompanyshallbetheAgreedValueofsuchassetatthetimeofcontribution;

(b)TheBookValuesofallCompanyassetsshallbeadjustedtoequaltheirrespectiveAgreedValuesupontheliquidationoftheCompanywithinthemeaningofSection1.704-1(b)(2)(ii)(g)oftheRegulations,orasappropriateornecessaryinthedeterminationoftheManagertoensurethattheCapitalAccountsoftheMembersproperlyreflecttheirrespectiveeconomicinterests;

(c)Exceptasotherwiseprovidedinsubparagraph(b),theBookValueofanyitemofCompanyassetsdistributedtoanyMembershallbeadjustedtoequaltheAgreedValue(takingCodeSection7701(g)intoaccount)ofsuchassetonthedateofdistribution;

(d)TheBookValueofanyitemofCompanyassetsshallbeadjustedtoequalitsAgreedValueonthedateofthegrantofaninterestintheCompany(otherthanademinimisinterest)asconsiderationfortheprovisionofservicestoorforthebenefitoftheCompanybyanexistingMemberactinginaMembercapacity,orbyanewMemberactinginaMembercapacityorinanticipationofbecomingaMember;and

(e)TheBookValuesofCompanyassetsshallbeincreased(ordecreased)toreflectanyadjustmentstotheadjustedbasisofsuchassetspursuanttoCodeSection734(b)orCodeSection743(b),butonlytotheextentthatsuchadjustmentsaretakenintoaccountindeterminingCapitalAccountspursuanttoSection1.704-1(b)(2)(iv)(m)oftheRegulationsandsubparagraph(f)ofthedefinitionof“NetIncome”and“NetLosses”;provided,however,thattheBookValuesshallnotbeadjustedpursuanttothissubparagraph(e)totheextentthatanadjustmentpursuanttosubparagraph(ii)isrequiredinconnectionwithatransactionthatwouldotherwiseresultinanadjustmentpursuanttothissubparagraph(e).

(f)IftheBookValueofanassethasbeendeterminedoradjustedpursuanttosubparagraph(a),(b)or(d),suchBookValueshallthereafterbeadjustedbythebookdepreciation(pursuanttoSection1.704-1(b)(2)(iv)(g)(3)oftheRegulations)takenintoaccountwithrespecttosuchasset,forpurposesofcomputingNetIncomeandNetLoss.

“CapitalAccount”shallmeanthesumofthecashandthefairmarketvalueofanyotherpropertycontributedbyaMember,adjustedfromtimetotimetoreflecttheMember’sshareofanyNetIncomeorLossandanyDistributions.

“CapitalContributions”shallmeanthemoneycontributedbyaMemberandthefairmarketvalueofanyotherpropertycontributedbyaMemberinaccordancewithSection2.06hereof.

“CashAvailableforDistribution”shallmeancashfromoperations,saleofassets,borrowings,orotherwiseavailablefordistributiontotheMembersasdeterminedbytheBoardingoodfaith,fromtimetotimeconsideringtheneedsoftheCompanyforoperatingcapital,thenetprofitsorlossandnetcashflowprojectedtobegeneratedfromoperationsoftheCompany,theborrowingpoweroftheCompany,aswellasanydebtreductionswhichmayberequiredtobemade,theneedtoestablishcashreservesforanycontingenciesandsuchothercriteriaastheBoardmaydeemappropriateunderthecircumstances.

“Code”shallmeantheInternalRevenueCodeof1986,asamendedfromtime-to-time,andthecorrespondingregulationspromulgatedthereunder.

“Company”shallmean[______],aNewYorklimitedliabilitycompany.

“CompanyMinimumGain”shallhavethemeaningsetforthinSections1.704-2(b)(2)and1.704-2(d)oftheRegulations.

“Director”shallmeanamanager(asdefinedinSection102(p)oftheL.L.C.Law)oftheCompanywhoisamemberoftheBoardofDirectors.

“Distribution”shallmeananytransferofmoneyorotherpropertytoaMember,inhisorhercapacityasaMember,fromtheCompany.ForpurposesofthisSection,propertyistobevaluedatitsfairmarketvalueonthedateoftransfer.

“FiscalPeriod”shallmeansfrom[January1toDecember31]ofeachyearorsuchportionthereofastheCompanyshallbeinexistence.

“L.L.C.Law”shallmeantheNewYorkLimitedLiabilityCompanyLaw,asamendedfromtimetotime.

“MemberMinimumGain”shallmeananamount,withrespecttoeachMemberNonrecourseDebt,equaltotheCompanyMinimumGainthatwouldresultifsuchMemberNonrecourseDebtweretreatedasNonrecourseDebt,determinedinaccordancewithSection1.704-2(c)(i)oftheRegulations.

“MemberNonrecourseDebt”shallhavethemeaningsetforthinSection1.704-2(b)(4)oftheRegulations.

“MemberNonrecourseDebtMinimumGain”shallmeananamount,withrespecttoeachMemberNonrecourseDebt,equaltotheCompanyMinimumGainthatwouldresultiftheMemberNonrecourseDebtweretreatedasaNonrecourseLiability,determinedinaccordancewithSection1.704-2(i)(3)oftheRegulations.

“MemberNonrecourseDeductions”shallhavethemeaningsetforthinSection1.704-(2)(i)(2)oftheRegulations.

“Members”shallmeanthePersonslistedasMembersattheendofthisOperatingAgreement.

“NetIncome”and“NetLosses”shallmeanforanygivenfiscalyearorotherperiod,anamountequaltotheCompany’staxableincomeorlossforsuchfiscalyear,determinedinaccordancewithCodeSection703(a)(and,forthispurpose,allitemsofincome,gain,loss,ordeductionrequiredtobestatedseparatelypursuanttoCodeSection703(a)(1)shallbeincludedintaxableincomeorloss),withthefollowingadjustments:

(a)AnyincomeoftheCompanythatisexemptfromfederalincometaxorotherwisetakenintoaccountincomputingNetIncomeorNetLossesshallbeaddedtotaxableincomeorloss;

(b)AnyexpendituresoftheCompanydescribedinCodeSection)(2)(B)ortreatedasCodeSection705(a)(2)(B)expenditurespursuanttoSection1.704-)(iv)(i)oftheRegulations,andnototherwisetakenintoaccountincomputingNetIncomeorNetLosses,shallbesubtractedfromsuchtaxableincomeorloss;

(c)IntheeventtheBookValueofanyCompanyassetisadjustedanttothedefinitionofBookValue,theamountofsuchadjustmentshallbetakenintoaccountasgainorlossfromthedispositionofsuchassetforpurposesofcomputingNetIncomeorNetLosses;

(d)GainorlossresultingfromanydispositionofpropertywithrespecttogainorlossisrecognizedforfederalincometaxpurposesshallbecomputedbyreferenceBookValueofthepropertydisposedof,notwithstandingthattheadjustedtaxbasisofsuchpropertydiffersfromitsBookValue;

(e)Inlieuofthedepreciation,amortization,andothercostrecoverydeductiontakenintoaccountincomputingsuchtaxableincomeorloss,thereshallbetakenintoaccountbookdepreciationforsuchfiscalyearorotherperiod,computedinaccordancewiththecapitalaccountmaintenancerulesofSection1.704-1(b)(2)(iv)(g)(3)oftheRegulations;and

(f)TotheextentanadjustmenttotheadjustedtaxbasisofanyCompanypursuanttoCodeSection734(b)orCodeSection743(b)isrequiredpursuanttoSection1.704-(1)(b)(2)(iv)(m)oftheRegulationstobetakenintoaccountindeterminingCapitalAccountsasaresultofadistributionotherthaninliquidationofUnits,theamountofsuchadjustmentshallbetreatedasanitemofgain(iftheadjustmentincreasesthebasisoftheasset)orloss(iftheadjustmentdecreasesthebasisoftheasset)fromthedispositionassetandshallbetakenintoaccountforpurposesofcomputingNetIncomeorNetLosses.

“NonrecourseDebt”shallhavethemeaninggiventotheterm“nonrecourseliability”bySection1.704-2(b)(3)oftheRegulations.

“NonrecourseDeductions”shallhavethemeaningsetforthinRegulationsSection1.704-2(c).

“OperatingAgreement”shallmeantheoperatingagreementoftheCompany,asamendedfromtimetotime.

“Person”shallmeananindividual,acorporation,apartnership,alimitedliabilitycompanyorpartnership,atrust,anunincorporatedorganizationoragovernmentoranyagencyorpoliticalsubdivisionthereof.

“ProRataShare”shallmeanafraction,thenumeratorofwhichshallbethenumberofUnitsheldbyaMemberandthedenominatorofwhichshallbethetotalnumberofUnitsheldbyallMembers.“ProRataShare”withrespecttoanyclassofUnitsshallmeanafraction,thenumeratorofwhichshallbethenumberofsuchclassofUnitsheldbyaMemberandthedenominatorofwhichshallbethetotalnumberofsuchclassofUnitsheldbyallMembers.

“Regulations”shallmeantheTreasuryRegulationspromulgatedundertheCode,asfromtimetotimeineffect.

“TaxDistribution”shallmean,withrespecttoeachMember,anamountequalto(a)theamountbywhichthenetprofit(otherthanincomeandgainreferredtoinSection3.01(c))allocatedtosuchMemberforthemostrecentlycompletedcalendarquarterexceedsthecumulativenetloss(ifany)allocatedtosuchMembersincetheinceptionoftheCompanymultipliedby(ii)40.0%.

“Unit”shallmeanthemembershipinterestoftheMembersintheCompany,dividedintoUnits,assetforthonScheduleAattachedhereto.

Thefollowingtermshavethemeaningdefinedinthecorrespondingsectionidentifiedinthechartbelow.

Term / Section
[“AdditionalIssuance”] / [2.05(d)]
“Co-SaleExercisedUnitsAmount” / 6.03(c)
“Co-SaleUnsoldUnitsAmount” / 6.03(c)
“Co-SaleNotice” / 6.03(a)
“CoveredPerson” / 9.14
“ExcessAmount” / 6.02(c)
“ExercisedUnits” / 6.02(d)
“FamilyMember” / 6.01(b)
“Foundation” / Background
“InterestCertificate” / 2.05(c)
“LicenseAgreement” / Background
“MajorityMember” / 6.04(a)
“MaximumAmount” / 6.02(c)
“MinimumAmount” / 6.02(c)
“NoticeofAcceptance” / 6.02(d)
“OfferedUnits” / 6.02(a)
“OffereeMembers” / 6.02(c)
“Participant” / 6.03(b)
“RegulatoryAllocations” / 3.01(d)
“RemainingOfferedUnits” / 6.02(c)
“ROFRShare” / 6.02(c)
“SaleNotice” / 6.02(a)
“SellingMember” / 6.02(a)
“SUNY” / 6.01(b)
“Tag-AlongAcceptanceNotice” / 6.04(b)
“Tag-AlongNotice” / 6.04(b)
“Tag-AlongMembers” / 6.04(a)
“Tag-AlongRight” / 6.04(a)
“Tag-AlongTransaction” / 6.04(a)
“Transfer” / 6.01(a)
“UnitPurchaseAgreement” / Background

ARTICLE IIIORGANIZATION

Section 3.01Name

.ThenameoftheCompanyis[______].

Section 3.02Purposes

.ThepurposeforwhichtheCompanyhasbeenformedistoengagein(a)[INSERT:DescriptionoftheCompany’sbusiness],and(b)anylawfulactoractivitynecessaryorincidentaltotheforegoingforwhichlimitedliabilitycompaniesmaybeformedundertheL.L.C.Law.

Section 3.03PrincipalOffice

.TheprincipalofficeoftheCompanyshallbelocatedat[INSERT:AddressoftheCompany’soffice]oratsuchotherplaceasmaybedesignatedbywrittennoticefromtheBoardtotheMembers.TheCompanymayhavesuchadditionalplaceorplacesofbusinessastheBoardmayfromtimetotimedeemadvisable.

Section 3.04Term

.TheCompanywasformedonthedayonwhichtheArticlesofOrganizationwasfiledwiththeSecretaryofStateoftheStateofNewYorkandshallcontinue,unlesssoonerdissolvedinaccordancewiththetermsofthisOperatingAgreementorthelawsoftheStateofNewYork.

Section 3.05Units

(a)IssuanceofUnits.TheCompanymayissueUnits,as,whenandforsuchconsideration,andpossessingsuchrightsandonsuchtermsandconditions,asdeterminedbytheBoardwithanysuchapprovaloftheMembersassetforthherein.UnitsshallbeeitherClassAUnitsorClassBUnits,providedthattheBoardmayauthorizetheissuanceofothertypesorseriesofUnits,accordingtothetermshereof.

(b)ClassAUnits.ClassAUnitsshallbeissuedonlytotheFoundation(oranyofitsassignee)andtonootherPerson.

(c)UnitCertificates.TheCompanyherebyirrevocablyelectsthatallUnitsshallbesecuritiesgovernedbyArticle8oftheUniformCommercialCodeasineffectonthedatehereofintheStateofNewYorkandasineffectinanyotherapplicablejurisdictionthatpresentlyorhereafterhasalawthatissubstantiallysimilartosuchArticle8.EachMembershallbeissuedacertificateorcertificatestoevidenceitsinterestsintheCompany(each,an“InterestCertificate”).AllInterestCertificatesshallbesignedinthenameoftheCompanybytheDirectororofficercertifyingtheinterestsownedbytheMember.AnyorallofthesignaturesonanInterestCertificatemaybebyfacsimileorelectronicsignature.EachcertificaterepresentingUnitsshallbeendorsedwiththefollowinglegend:

THESALE,PLEDGE,HYPOTHECATIONORTRANSFEROFTHESECURITIESREPRESENTEDBYTHISCERTIFICATEISSUBJECTTO,ANDINCERTAINCASESPROHIBITEDBY,THETERMSANDCONDITIONSOFTHECOMPANY’SOPERATINGAGREEMENT.COPIESOFSUCHAGREEMENTMAYBEOBTAINEDUPONWRITTENREQUESTTOTHESECRETARYOFTHECOMPANY.

(d)[NOTE:ThefollowingclausesshouldbeusediftheFoundationgetsAnti-DilutionRightsorPreemptiveRights.TheFoundationshouldgetoneortheother.Anti-Dilutioncanbeaddressedindifferentways,buttheprovisionbelowisthemostfavorabletotheFoundation.]

Anti-Dilution.AtanytimeduringthetermoftheCompany,shouldtheCompanyissueanyUnitsorotherequitysecurities(includingderivativesecurities)(an“AdditionalIssuance”)contemporaneouslywithanysuchAdditionalIssuancetheCompanyshallissuetotheholdersofClassAUnits,anumberofClassAUnitssufficienttoassurethateachsuchholderwillhavethesameProRataShareimmediatelyfollowingtheAdditionalIssuancethatsuchholderhadimmediatelypriortotheAdditionalIssuance.IntheeventthatanyholderofClassAUnitsparticipatesinanyAdditionalIssuanceasaninvestor,theissuancecontemplatedbythisSection2.05(e)shallbeinadditiontoanyissuancestosuchholdermadeinconnectionwiththesubjecttransaction.

PreemptiveRights.ShouldtheCompanydesiretoissueadditionalUnitsitshallfirstgivewrittennoticetoeachholderofClassAUnitsofthesame,includingthetermsandconditions(includingtheperUnitprice)tobepaidbythepersontowhomsuchadditionalUnitsaretobeissued.Foraperiodofthirty(30)calendardaysafterdeliveryofsuchnoticebytheCompanytoeachholderofClassAUnits,eachholderofClassAUnitsshallhavetheright(exercisableuponwrittennoticedeliveredtotheCompanywithinsuchthirty(30)calendardayperiod)topurchasesuchadditionalUnitsinanamountsufficienttoensurethateachholderofClassAUnitswillhavethesameProRataShareimmediatelyfollowingtheissuanceofanyadditionalUnitsthatsuchholderofClassAUnitshadimmediatelypriortotheissuanceofsuchadditionalUnits.ThetermsandconditionsofanysuchpurchasebyaholderofClassAUnits(includingtheperUnitprice)shallbeequaltothetermsandconditions(includingtheperUnitprice)tobepaidbythepersontowhomsuchadditionalUnitsaretobeissued.

5.SUBLICENSING&lt;OPTIONAL&gt;

a.LICENSEETHERESEARCHFOUNDATIONFOR

b.[COMPANY]THERESEARCHFOUNDATIONFOR

ARTICLE IBACKGROUND

ARTICLE IIDEFINITIONS

ARTICLE IIIORGANIZATION

Section 3.01Name

Section 3.02Purposes

Section 3.03PrincipalOffice

Section 3.04Term

Section 3.05Units

(b)ClassAUnits.ClassAUnitsshallbeissuedonlytotheFoundation(oranyofitsassignee)andtonootherPerson.

(d)[NOTE:ThefollowingclausesshouldbeusediftheFoundationgetsAnti-DilutionRightsorPreemptiveRights.TheFoundationshouldgetoneortheother.Anti-Dilutioncanbeaddressedindifferentways,buttheprovisionbelowisthemostfavorabletotheFoundation.]

Section 3.06CapitalContributions

5.SUBLICENSING<OPTIONAL>