Sample Business Contracts

Employee Confidentiality and Inventions Agreement - Artificial Life Inc.

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                                    FORM OF
                              ARTIFICIAL LIFE, INC.

      In consideration of my employment or continued employment by Artificial
Life, Inc., a Delaware corporation, or any of its predecessors, successors or
subsidiaries (collectively, the "Company"), and for other valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, I
agree as follows:


      I understand that the Company continually obtains and develops valuable
proprietary and confidential information concerning its business, business
relationships and financial affairs (the "Confidential Information") which may
become known to me in connection with my employment. By way of illustration, but
not limitation, Confidential Information may include Inventions (as hereafter
defined), trade secrets, technical information, know-how, research and
development activities of the Company, product and marketing plans, customer and
supplier information and information disclosed to the Company or to me by third
parties of a proprietary or confidential nature or under an obligation of
confidence. Confidential Information is contained in various media, including
without limitation, patent applications, computer programs in object and/or
source code, flow charts and other program documentation, manuals, plans,
drawings, designs, technical specifications, laboratory notebooks, supplier and
customer lists, internal financial data and other documents and records of the
Company. Confidential Information also includes any knowledge of developments,
ways of business, etc., which may in themselves be generally known but whose use
by the Company is not generally known.

      I acknowledge that all Confidential Information, whether or not in writing
and whether or not labeled or identified as confidential or proprietary, is and
shall remain the exclusive property of the Company or the third party providing
such information to me or the Company. I agree that during the term of my
employment and thereafter, I shall use, publish and disclose Confidential
Information only in the performance of my duties for the Company and in
accordance with Company policy with respect to the protection of Confidential
Information. I agree not to use or disclose such Confidential Information for my
own benefit or for the benefit of any other person or business entity.

      I agree to exercise my best efforts to protect the confidentiality of
Confidential Information in my possession. Upon the termination of my
employment, or at any time upon the Company's request, I shall return
immediately to the Company any and all materials containing any Confidential
Information then in my possession or under my control.

      Confidential Information shall not include information which (a) is or
becomes generally known within the Company's industry through no fault of mine;
(b) was known to me at the time it was disclosed as evidenced by my written
records at the time of disclosure; (c) is lawfully and in good faith made
available to me by a third party who did not derive it from the Company and who
imposes no obligation of confidence on me; or (d) is required to be disclosed by
a governmental authority or by order of a court of competent jurisdiction,
provided that such

<PAGE>   2
disclosure is subject to all applicable governmental or judicial protection
available for like material and reasonable advance notice is given to the


      I agree promptly to disclose to the Company any and all ideas, concepts,
discoveries, inventions, developments, original works of authorship, software
programs, software and systems documentation, trade secrets, technical data and
know-how that are conceived, devised, invented, developed or reduced to practice
or tangible medium by me, under my direction or jointly with others during any
period that I am employed or engaged by the Company, whether or not during
normal working hours or on the premises of the Company, which relate, directly
or indirectly, to the business of the Company and arise out of my employment
with the Company (collectively, "Inventions").

      I hereby assign to the Company all of my right, title and interest to the
Inventions and any and all related patent rights, copyrights and applications
and registrations therefor. During and after my employment, I shall cooperate
with the Company, at the Company's expense, in obtaining proprietary protection
for the Inventions and I shall execute all documents which the Company shall
reasonably request in order to perfect the Company's rights in the Inventions. I
hereby appoint the Company my attorney to execute and deliver any such documents
on my behalf in the event I should fail or refuse to do so within a reasonable
period following the Company's request. I understand that, to the extent this
Agreement shall be construed in accordance with the laws of any state which
limits the assignability to the Company of certain employee inventions, this
Agreement shall be interpreted not to apply to any such invention which a court
rules or the Company agrees is subject to such state limitation.

      I acknowledge that all original works of authorship made by me within the
scope of my employment which are protectible by copyright are intended to be
"works made for hire", as that term is defined in Section 101 of the United
States Copyright Act of 1976 (the "Act"), and shall be the property of the
Company and the Company shall be the sole author within the meaning of the Act.
If the copyright to any such copyrightable work shall not be the property of the
Company by operation of law, I will, without further consideration, assign to
the Company all of my right, title and interest in such copyrightable work and
will cooperate with the Company and its designees, at the Company's expense, to
secure, maintain and defend for the Company's benefit copyrights and any
extensions and renewals thereof on any and all such work. I hereby waive all
claims to moral rights in any Inventions.

      I further agree to assign to the United States government all my right,
title and interest in and to any and all Inventions whenever such full title is
required to be in the United States by a contract between the Company and the
United States or any of its agencies.

      I further represent that the attached Schedule A contains a complete list
of all inventions made, conceived or first reduced to practice by me, under my
direction or jointly with others prior to my employment with the Company ("Prior
Inventions") and which are not assigned to the Company hereunder. If there is no
such Schedule A attached or if there is nothing listed on it, I represent that
there are no such Prior Inventions.

<PAGE>   3


      I hereby represent to the Company that, except as may be identified on
Schedule B, I am not bound by any agreement or any other previous or existing
business relationship which conflicts with or prevents the full performance of
my duties and obligations to the Company (including my duties and obligations
under this or any other agreement with the Company) during my employment.

      I understand that the Company does not desire to acquire from me any trade
secrets, know-how or confidential business information I may have acquired from
others. Therefore, I agree that during my employment with the Company I will not
improperly use or disclose any proprietary information or trade secrets of any
former or concurrent employer, or any other person or entity with whom I have an
agreement or to whom I owe a duty to keep such information in confidence. Those
persons or entities with whom I have such agreements or to whom I owe such a
duty are identified on Schedule B. If there is no Schedule B attached, or if
there is nothing listed on it, I represent that there are no such agreements or
person or entities.

      I agree that during my employment and for a period of one year after the
termination or cessation of my employment for any reason, I shall not directly
or indirectly recruit, solicit or hire any employee of the Company, or induce or
attempt to induce any employee of the Company to discontinue his or her
employment relationship with the Company.


      I understand that this Agreement does not constitute a contract of
employment or create an obligation on the part of the Company to continue my
employment with the Company. I understand that my employment is "at will" and
that my obligations under this Agreement shall not be affected by any change in
my position, title or function with, or compensation, by the Company.


      In the event that I leave the employ of the Company, I hereby grant
consent to notification by the Company to my new employer about my rights and
obligations under this Agreement.

<PAGE>   4

      In the event that any one or more of the provisions contained herein
shall, for any reason, be held to be invalid, illegal, or unenforceable in any
respect, such invalidity, illegality, or unenforceability shall not affect any
other provisions of this Agreement, and all other provisions shall remain in
full force and effect. If any of the provisions of this Agreement is held to be
excessively broad, it shall be reformed and construed by limiting and reducing
it so as to be enforceable to the maximum extent permitted by law.

      No delay or omission by the Company in exercising any right under this
Agreement will operate as a waiver of that or any other right. No waiver or
consent given by the Company on any occasion will be construed as a bar to or
continuing waiver of any right on any other occasion.

      I acknowledge that the restrictions contained in this Agreement are
necessary for the protection of the business and goodwill of the Company and are
reasonable for such purpose. I agree that any breach of this Agreement by me
will cause irreparable damage to the Company and that in the event of such
breach, the Company shall be entitled, in addition to monetary damages and to
any other remedies available to the Company under this Agreement and at law, to
equitable relief, including injunctive relief, and to payment by myself of all
costs incurred by the Company in enforcing of the provisions of this Agreement,
including reasonable attorneys' fees.

      This Agreement shall be construed as a sealed instrument and shall in all
events and for all purposes be governed by, and construed in accordance with,
the laws of the Commonwealth of Massachusetts without regard to any choice of
law principle that would dictate the application of the laws of another


Date                          (Signature)____________________________
                              Print Name:___________________________

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                                   SCHEDULE A

                                PRIOR INVENTIONS

[Initial One]

__________  No Prior Inventions

__________  The following is a complete list of all Prior Inventions:


If I am claiming any Prior Inventions above, I agree that, if in the course of
my employment with the Company, I incorporate into a Company product, process or
machine a Prior Invention owned by me or in which I have an interest, the
Company shall automatically be granted and shall have a non-exclusive,
royalty-free, irrevocable, transferrable, perpetual world-wide license to make,
have made, modify, use and sell such Prior Invention as part of, or in
connection with, such product, process or machine.

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                                   SCHEDULE B

                                PRIOR COMMITMENTS

[Initial One]

________    No agreements or obligations to other persons or entities.

________    The following is a complete list of all persons or entities to whom
            I have obligations and/or with whom I have an agreement: