CM-MA-112 Procedure for Protection of Proprietary Information

Table of Contents

1. Purpose
2. Policy
3. Responsibilities
4. Definition
5. Procedure
6. Related Policies and Procedures
7. Attachment

1. Purpose

To establish the company policy for the protection of proprietary information including proprietary computer software that is owned by, or is entrusted to Company

2. Policy

It is company policy to protect proprietary information whether company owned, or designated as such and accepted from Clients and other third parties. This includes reception, control, disclosure, and delivery of such information as described herein. Specific written approval of the Managing Director or the Director of Operations is required prior to (1) accepting proprietary information from sources outside the company, (2) disclosing or delivering (either verbally or in writing) proprietary information, and (3) granting rights in proprietary information.

3. Responsibilities

It is the responsibility of all employees to keep private or other wise protect proprietary information in accordance with the intent and spirit of this procedure and of agreements signed by them with the company (Employee Secrecy Agreement; see Attachments 2 and 3). This calls for a constant alertness by the employees and a constant check by the Department Managers to make sure that this procedure is followed.

3.1 The determination that information is proprietary is the responsibility of the originating party.

3.2 Prior to disclosure of any proprietary information outside the company, it is the responsibility of the discloser to obtain all necessary clearances in accordance with established procedures. Such clearances also apply when the company is requested by company affiliated companies to disclose for reference purposes information received by the company from Clients or prepared by the company for Clients in the course of project execution.

3.3 The control and distribution of proprietary information is the responsibility of the originating party.

3.4 Prior to accepting from sources outside the company, information designated as proprietary or reasonably judged to be of a proprietary nature, the intended recipient determines if the outside source desires the information to be kept in confidence. This has to be a positive determination and documented as outlined in section 5.1.1.b.

4. Definition

Proprietary Information

Any information or data whether oral or written rightfully possessed and kept private within the company, that is developed or acquired at company expense, that may be valuable to others. Examples of proprietary information are included in memos, engineering note books, sketches, drawings, specifications, reports, computer software and computer software documentation, manuals, models, and other articles relating to processes, designs, techniques or procedures that the company has developed or acquired on its own initiative. This definition includes not only company generated information, but also proprietary information accepted by the company from others including Clients and Company affiliated companies.

5. Procedure

5.1 Receipt

5.1.1 Recipients, or intended recipients, of information from sources outside the company, if advised that the outside source desires the information to be kept in confidence:

a. Attempt to limit the communication to matters not deemed to be proprietary. Such a solution is in the best interests of both parties and avoids unnecessary restraints upon the free flow of ideas.

b. If, for sound business reasons, it is deemed necessary to accept information in confidence, a written agreement covering the reception and protection of such information must be executed prior to receipt of the information. This agreement may be in the form of a separate contract, incorporated into a purchase order, or, in the case of computer software rentals, in a leasing agreement. In any event, the terms of such agreement require approval as outlined in section 2 above.

5.1.2 The recipient of unsolicited ideas for new or improved processes, etc. promptly arranges with cognizant company counsel for appropriate disposition. Such information is not reviewed or further disseminated within the company.

5.1.3 Information marked "confidential" or bearing a similar legend and received from outside the company is handled as follows:

a. If delivered and accepted under the terms of a contract, purchase order, or other agreement, handle strictly in accordance with the terms of the agreement. Normally the agreement requires the company to afford it the same protection as specified in sections 5.2.1, 5.2.2, 5.2.3 and 5.2.4; however, in some cases tighter precautions may have to be observed.

b. If unsolicited, or if so marked contrary to the terms of the contract, purchase order, or other agreement, reseal the container in which it was received and deliver it to company counsel for disposition.

5.2 Protection

5.2.1 Rights to proprietary information can be relinquished by careless disclosure of unmarked or improperly marked data outside the company or by failure to protect the information within the company.

5.2.2 Originators of any information

a. Determine if it is of significant value and proprietary and designate it accordingly. Care is exercised not to designate information as proprietary when such is not warranted. The risk of inopportune disclosure of proprietary information versus withholding this information from those who require it and have a right to it must be considered.

b. Insure that proper safeguards are established during the preparation of proprietary information. Each item of such information is identified with its project number and title, date prepared, and the proper restrictive legend.

c. Maintain or determine that there is otherwise maintained a record of the generation and distribution of proprietary information. Distribution is limited to those who have a "need-to-know" the information.

d. Assure that proprietary information is marked with the proper restrictive legend. The following legend is used unless an alternative legend or other means of marking is required by virtue of the terms of a Client contract.

"This document contains proprietary information belonging to Company or its affiliated companies and shall be used only for the purpose for which it was supplied. It shall not be copied, reproduced or otherwise used, nor shall such information be furnished in whole or in part to others, except in accordance with the terms of any agreement under which it was supplied or with the prior written consent of Company. and shall be returned upon request".

e. Apply the above legends as follows:

1. On textual documents and drawings
   On the first page of the document. On each sheet of applicable drawings and specifications.
2. On computer software

a. In the case of tape, on the tape reel.

b. In the case of a disc pack, on the casing of the disc pack.

5.2.3 Recipients of proprietary information assure that it is properly safeguarded by storing in a locked desk or contained with a locking device, or otherwise secured and not left exposed on desks or in file trays.

5.2.4 Summary

The requirements for internal protection of proprietary information are summarized in Attachment 1 hereto.

5.3 Disclosures

Proprietary information is a valuable Company asset and care must be taken to prevent its loss by inadvertent and careless disclosure. All requests from outside the Company for disclosure of proprietary information are subject to requirements of section 2 unless specifically covered below. Specific disclosure are conducted as follows:

5.3.1 Technical Talks and Papers

Prior clearance is obtained from the "Technical Article Writing Committee" with respect to contents of articles and talks including visual aids.

5.3.2 Disclosures to Licensees and Prospective Licensees

Normally there is a written agreement between The Company, and such a party before proprietary information is furnished, and when furnished it must be in strict accordance with that agreement.

5.3.3 Technical Proposals

Such proposals are marked and recorded.

Markings

The following legend is applied to the title page of the proposal:

"This volume contains proprietary information belonging to Company or its affiliated companies and shall not be copied or reproduced, or otherwise used except for the sole purpose of evaluation of the Proposal of which it forms a part, nor shall it or the information contained therein be furnished in whole or in part to others, except with the prior written consent of Company and in the event Company is not the successful bidder for the work contemplated, shall be returned upon request."

5.4 Reproduction

Reproduction and internal distribution is controlled so as to retain the privacy of proprietary information.

5.4.1 Initial reproduction of internally generated proprietary information is limited to the precise number of copies requested by the originator. All startup and overrun copies are destroyed.

5.4.2. The originator or recipient of internally generated proprietary information maintains a record of the distribution of each copy.

5.4.3 Recipients of externally generated proprietary information are not to authorize its reproduction except in accordance with the agreement covering the reception and protection of such information (See sections 5.1.1.b and 5.1.3.a above).

5.5 Internal Distribution and Mailing

5.5.1 When proprietary information is distributed, all recipients are listed by name and mail center. Coded distribution lists are not used. A file copy with distribution list is an adequate record of distribution.

5.5.2 When the intercompany mail is used, the data is sealed in an envelope marked "confidential".

5.6 Disposition

Proprietary information no longer required by the person to whom it is assigned, is to be returned to the originator so as to assure that it does not fall into unauthorized hands. Masters and copies shall be destroyed when no longer needed.

5.6.1 In the event that Company. is not the successful bidder, it is the responsibility of:

a. The Sales Engineer to provide that prospective Clients return to Company. proposals containing proprietary information belonging to Company or its affiliated companies.

b. The Proposals Manager to provide that proprietary information received by Company from prospective Clients is returned to them.

Upon project completion, the Project Manager shall provide that proprietary information belonging to the Client is returned to the Client.

5.6.2 Upon the separation of an employee, the Department Manager makes sure that proprietary information is returned to the company. Key employees and their new employer receive a secrecy reminder.

6. Related Policies and Procedures

7. Attachments

1. Internal Protection of Proprietary Information and Computer Software
2. Agreement (English text)
3. Overeenkomst (Dutch text)

INTERNAL PROTECTION OF PROPRIETARY INFORMATION AND COMPUTER SOFTWARE

AGREEMENT

This Agreement made and entered into as of the

MM/DD/YYYY by and between Company, a company organized and existing under the laws of <Country>, having its registered office at <City> and (hereinafter called "Employee").

WITNESSETH

Whereas, Employee has entered into the service of Company with the agreement made between the parties on the date first mentioned above (hereinafter called the "Employment Agreement"); and

Whereas, Employee agrees that the following terms and conditions will be part of the Employment Agreement.

Now, therefore, it is agreed as follows:

1. Employee agrees:

a) that the result of work done and all inventions and improvements conceived of or made by him during his employment by Company, and during and including a period of one year thereafter, relating in any way to the business of Company, and particularly to the processes, products, equipment or apparatus employed in connection with the business of Company, shall be the sole and exclusive property of Company; that both during or after employment he will promptly disclose the same to Company and will execute any and all documents or assurance which may be deemed necessary by Company to vest in Company or in whomever it may designate its rights to such inventions and improvements;

b) that no secret or confidential information imparted to him and no technical data acquired by him by virtue of his employment by Company, relating to the processes, products or to the design, construction or operation of equipment or apparatus in which Company and/or a (prospective) client of Company may be interested, shall be disclosed or used by him during or subsequent to his employment for the benefit of any other person, firm or corporation, unless he shall first secure the written consent of Company to such disclosure or use, except as such information or data may appear in published sources available to the general public;

c) prior to disclosure of any confidential information outside Company, it is the responsibility of the Employee to obtain all necessary clearances in accordance with established procedures. Such clearances also apply when Company is requested by Company affiliated companies to disclose for reference purposes information received by Company from Clients or prepared by Company for Clients in the course of project execution;

d) that all designs, data, records, drawings, models and the like (including copies of the same) acquired or made by him while in the employ of Company, and relating in any way to the business of Company and/or a (prospective) client of Company, are deemed to be the property of Company and shall be delivered promptly to Company by him whenever required to do so by Company and in any event when his employment terminates;

e) that he will not during the term of employment with Company accept outside employment or any remuneration from third parties engaged in similar types of work to that of Company, except with the prior written consent of Company;

f) that he will not during the term of employment with Company accept any personal advantage, directly or indirectly, from third parties engaged in the industry in which Company is active.

2. Employee will familiarize himself with Company's "Procedure for Protection of Proprietary Information" CM-MA-112, which is available from the Department Manager.

3. The English text of this Agreement (of which a true Dutch translation is attached hereto), shall be binding.

4. This Agreement shall be construed under and shall be governed by Netherlands law.

In Witness Whereof, the parties hereto have executed this Agreement in duplicate as of the date first written above.

<Company Name>

OVEREENKOMST

Ondergetekende,Company name, een Vennootschap naar Nederlands recht, gevestigdte <plaats> (hierna te noemen "Company name")

en

(hierna te noemen de "Werknemer"), in aanmerking nemende, dat de Werknemer in dienst van Company is getreden, zoals blijkt uit de op MM/DD/200. tussen partijen aangegane arbeidsovereenkomst (hierna te noemen de "Arbeidsovereenkomst") en dat de Werknemer ermee akkoord gaat dat de navolgende bepalingen en voorwaarden deel uit maken van de Arbeidsovereenkomst;

zijn op <datum> als volgt overeengekomen:

1. De Werknemer verklaart ermede akkoord te gaan dat:

a) alle resultaten van de verrichte werkzaamheden en alle uitvindingen en verbeteringen, die door hem tijdens de duur van zijn dienst betrekking bij Company en gedurende een periode van een jaar daarna, zullen worden gedaan, respectievelijk bedacht, voorzover zij betrek king hebben op het bedrijf van Company en in het bijzonder op de werkwijzen, produkten, uitrusting en apparaten die in verband met het bedrijf van Company worden gebruikt, het uitsluitend eigendom van Company zullen zijn, dat hij, zowel tijdens als na afloop van de dienstbetrekking, deze onmiddellijk aan Company zal openbaren en zal medewerken aan het opmaken en tekenen van alle octrooi-aanvragen, overdrachten of andere stukken of verklaringen die door Company noodzakelijk worden geacht, opdat Company, of door haar te bepalen derden, de rechten tot zulke uitvindingen en verbeteringen zal verkrijgen;

b) geen geheime of vertrouwelijke inlichtingen die hem worden verstrekt en geen technische gegevens die door hem ingevolge zijn dienst betrekking bij Company worden verkregen met betrekking tot de werkwijzen, produkten, uitrusting en apparaten die voor Company en/of een (toekomstige) klant van Company van belang zijn, door hem tijdens of na afloop van zijn dienstbetrekking zullen worden geopenbaard aan of gebruikt ten behoeve van enige derde, firma of vennootschap, tenzij hij zich van de schriftelijke goedkeuring van Company met betrekking tot die bekendmaking of dat gebruik heeft verzekerd, een en ander behoudens het geval, dat die inlichtingen of gegevens zouden ver schijnen in publicaties die voor het publiek toegankelijk zijn;

c) voordat enige confidentiële informatie bekend wordt gemaakt buiten Company, is het de verantwoordelijkheid van de Werknemer om alle noodzakelijke vrijgevingen te verkrijgen in overeenstemming met de ontwikkelde procedures. Zulke vrijgevingen zijn ook van toepassing wanneer Company verzocht wordt door Company-filialen om informatie, ontvangen door Company van klanten of vervaardigd door Company voor klanten gedurende de uitvoering van een project, bekend te maken voor referentie-doeleinden;

d) dat alle ontwerpen, schriftelijke gegevens, dossiers, tekeningen, modellen, aantekeningen en dergelijke (met inbegrip van kopieën daarvan) die door hem tijdens de duur van zijn dienstbetrekking bij Company zijn verkregen of gemaakt en die in enigerlei opzicht op het bedrijf van Company en/of een (toekomstige) klant van Company betrekking hebben, geacht worden het eigendom van Company te zijn en door hem onmiddellijk aan Company zullen worden afgegeven, zodra Company hem zulks verzoekt, of zonder meer, wanneer zijn dienstbetrekking eindigt;

e) dat hij gedurende de Arbeidsovereenkomst met Company geen werkzaamheden voor derden zal verrichten of enige beloning van derden zal aanvaarden, voorzover die derden een bedrijf uitoefenen dat gelijksoortig is aan dat van Company, tenzij hiertoe de voorafgaande schriftelijke toestemming van Company is verkregen;

f) dat hij gedurende zijn arbeidsovereenkomst met Company geen enkel persoonlijk voordeel zal accepteren, direct of indirect, van derden die betrokken zijn bij het werkgebied waarop Company actief is.

2. De Werknemer zal zichzelf vertrouwd maken met Companys "Procedure for Protection of Proprietary Information" CM-MA-112, welke bij het afdelingshoofd aanwezig is.

3. De Engelse tekst van deze Overeenkomst (waarvan deze een juiste Nederlandse vertaling is) is bijgesloten en zal tussen de partijen bindend zijn.

4. Op deze Overeenkomst is Nederlands recht van toepassing.

Aldus in tweevoud opgemaakt en getekend te 's-Gravenhage op de datum zoals hierboven vermeld.

<Company Name>.