Confidential Treatment
SERVICE AND LICENSE AGREEMENT
BETWEEN
PHOTOBIT, LLC
AND
XXXXXX TECHNOLOGIES INC.
This Service and License Agreement ("Agreement") is made as of the 24th
day of June 1996 (the "Effective Date") between Photobit, LLC ("Photobit"), a
California limited liability company with its principal place of business at
0000 Xxxxxxxx Xxxxxxxxx, Xxxxx 000, Xx Xxxxxxxxx, Xxxxxxxxxx 00000, and Xxxxxx
Technologies, Inc. ("Xxxxxx"), a New York corporation with its principal place
of business at 00-00 00xx Xxxxxx, Xxxx Xxxxxx Xxxx, Xxx Xxxx 00000.
WHEREAS, the parties may from time to time agree in writing that
Photobit will provide certain services to Xxxxxx; and
WHEREAS, the parties have agreed that such services shall be provided in
accordance with the terms of this Agreement; and
WHEREAS, the California Institute of Technology ("Cal Tech"), through
its Jet Propulsion Laboratory ("JPL"), has been engaged in basic research in
active pixel sensors, conducted for the United States Government under contract
NAS7-1260 between Cal Tech and NASA; and
WHEREAS, that research led to the United States patents, patent
applications and other inventions listed in Exhibit A, which are owned by Cal
Tech, subject to certain rights of the United States Government; and
WHEREAS, Photobit entered into a License Agreement with Cal Tech dated
November 29, 1995 (the "Cal Tech Agreement"), pursuant to which Photobit is
granted a license under such patents, patent applications and other inventions;
and
WHEREAS, Xxxxxx wishes to obtain from Photobit, and Photobit wishes to
grant to Xxxxxx, a sublicense under such patents, patent applications and other
inventions in the Field (as defined in Section 1.1) in accordance with the terms
and conditions hereof;
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NOW, THEREFORE, for and in consideration of the foregoing, of the mutual
covenants and undertakings contained herein and of other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties, intended to be legally bound, hereby agree as follows:
1. Definitions
1.1. "Field" means
*
1.2. "Gross Invoice Amount" means:
(i) If a Licensed Product is sold, leased or otherwise
distributed by Xxxxxx to a third party other than a Related Company,
Xxxxxx'x actual billing or invoice amount for such Licensed Product;
(ii) If a Licensed Product is sold, leased or otherwise
distributed by Xxxxxx to a Related Company for subsequent distribution
by or for such Related Company other than as part of a larger product,
device or system incorporating the Licensed Product, the greater of
Xxxxxx'x actual billing or invoice amount or the Related Company's
actual billing or invoice amount for such Licensed Product;
(iii) If a Licensed Product is sold, leased or otherwise
distributed by Xxxxxx to a Related Company for subsequent distribution
by or for such Related Company as part of a larger product, device or
system incorporating the Licensed Product, the greater of Xxxxxx'x
actual billing or invoice amount or a good faith apportionment
of the Related Company's actual billing or invoice amount for such
larger product, device or
-----------
* The confidential portion has been omitted pursuant to a request for
confidential treatment and the omitted material has been filed separately with
the Commission.
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system that represents the amount being charged for
the Licensed Product; or
(iv) If a Licensed Product is sold, leased or otherwise
distributed by Xxxxxx to a Related Company for use by such Related
Company, the greater of Xxxxxx'x actual billing or invoice amount or the
billing or invoice amount that would have resulted from a hypothetical
arm's-length sale by Xxxxxx to a third party if such third party were
not a Related Company.
1.3. "Licensed Patent Rights" means worldwide rights to the inventions
described and claimed in the patents, patent applications and invention
disclosures listed in Exhibit A; any patents which issue on the applications or
disclosures listed in Exhibit A; reissues, reexaminations, renewals, extensions,
divisionals, continuations, and continuations-in-part of the foregoing; and any
foreign counterparts and any other forms of protection directed to the
inventions covered by the patents, applications and invention disclosures listed
in Exhibit A.
1.4. "Licensed Photobit Materials" means any reports, designs, drawings,
layouts, simulations, inventions, discoveries and other information, know-how
and work products created by Photobit in the performance of Services and
provided by Photobit to Xxxxxx in connection with Services.
1.5. "Licensed Product" means any product in the Field that (i) embodies
Photobit Materials or is otherwise made, imported, used, offered for sale or
sold through the use of Photobit Materials, or (ii) is covered by, or is made by
a process covered by, any valid claim of any Licensed Patents Rights; provided
that the term "Licensed Product" does not include any personal computer,
software therefor, monitor, display, keyboard or any wire leads or like
connectors associated with such a product.
1.6. "Related Company" means any corporation or other legal entity
directly or indirectly owned or controlled by Xxxxxx or its successors or
assigns, or any successor or assign of such an entity.
1.7. "Services" means professional or technical services, such as the
design of integrated circuits, that the parties may from time to time agree in
writing
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that Photobit will provide in accordance with the terms of this Agreement.
2. Services
2.1. From time to time, the parties may, but shall not be obligated to,
agree in writing that Photobit will provided certain Services to Xxxxxx. Each
such agreement for Services shall describe the Services to be provided and the
consideration to be paid by Xxxxxx to Photobit for the providing of the Services
(in addition to the royalties payable under Article 4 for certain uses of
Licensed Photobit Materials resulting from the Services). When the parties agree
that Services will be provided, the parties shall be bound by all the applicable
2.2. Photobit shall own all right, title and interest in and to Licensed
Photobit Materials, including all patent, copyright, trade secret and other
proprietary rights therein. However, Photobit shall not use Licensed Photobit
Materials on behalf of, or distribute all or any part of Licensed Photobit
Materials to, any third party in connection with the design, manufacture or sale
of products in the Field. In addition, if the parties agree that Photobit will
provide Xxxxxx Licensed Photobit Materials consisting of an integrated circuit
design and that Xxxxxx or a third party will create photolithographic masks
therefrom, then Xxxxxx or the third party shall own all right, title and
interest in and to such masks, subject to the underlying rights of Photobit in
the design. Xxxxxx acknowledges that Licensed Photobit Materials contain
valuable confidential and proprietary information of Photobit and may be
protected by patent, copyright, trade secret or other law. Except as set forth
above in this Section 2.2, Xxxxxx shall have only the licenses with respect to
Licensed Photobit Materials that are granted in Section 3.1. Xxxxxx shall not
use, reproduce or disclose Licensed Photobit Materials except as specifically
permitted by this Agreement.
2.3. At Xxxxxx'x request, Photobit shall negotiate in good faith with
Xxxxxx terms pursuant to which Photobit will provide Services involving the
creation of modifications to integrated circuit designs previously created by
Photobit for Xxxxxx. If the parties are not able to agree on such terms, then,
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subject to Article 12, Xxxxxx may arrange to have such modifications provided by
an independent contractor reasonably acceptable to Photobit on terms no more
favorable to the third party than the terms Xxxxxx last proposed to Photobit. In
such a case, Photobit shall provide to Xxxxxx any existing layouts, schematics
and simulations for such designs that are reasonably necessary for such
independent contractor to provide such modifications. In other circumstances,
however, Xxxxxx shall not create or authorize the creation of modified versions
of integrated circuit designs previously created by Photobit for Xxxxxx.
2.4. Photobit may provide professional or technical services, such as
the design of integrated circuits, to customers other than Xxxxxx, and in doing
so, Photobit's personnel may use general knowledge and experience developed in
the course of providing Services to Xxxxxx. However, Photobit may not use any
knowledge or experience developed in the course of providing Services to Xxxxxx
to provide services to any third party in connection with the design,
manufacture or sale of products in the Field.
*
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*
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*
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*
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5. Records Reports and Payments
---------
* The confidential portion has been omitted pursuant to a request for
confidential treatment and the omitted material, consisting of approximately 4
pages has been filed separately with the Commission.
5.1. Xxxxxx shall keep complete and accurate records and books of
account containing all particulars and reasonable supporting documentation
concerning all Licensed Products made, imported, used, offered for sale, sold or
otherwise distributed by Xxxxxx or Related Companies under this Agreement, the
Gross Invoice Amount for Licensed Products and the calculation of amounts
payable under this Agreement. Xxxxxx shall retain such records and books for at
least three (3) years after Xxxxxx pays Photobit the applicable royalties.
Xxxxxx shall require Related Companies to maintain such records and books as are
necessary for Xxxxxx to comply with the foregoing obligations. During such three
(3) year period, within a reasonable time after receipt of notice from Photobit,
Xxxxxx shall allow a certified public accountant selected by Photobit and
acceptable to Xxxxxx to examine during business hours, no more often than
annually, any such records and books. Photobit shall neither use nor disclose to
any third party except Cal Tech any confidential information learned through an
examination of such records and books for any purpose other than determining and
enforcing Photobit's rights under this Agreement.
5.2. On or before the last day of each February, May, August and
November for so long as royalties are payable under this Agreement, Xxxxxx shall
render to Photobit a report in writing, setting forth by model the number of
units of Licensed Products manufactured and the number of units distributed
during the preceding calendar quarter by Xxxxxx and Related Companies and the
Gross Invoice Amount for Licensed Products. Each such reports shall also set
forth an explanation of the calculation of the royalties payable hereunder and
be accompanied by payment of the royalties shown by said report to be due to
Photobit.
5.3. If Xxxxxx fails to make any payment required under this Agreement
when due, Xxxxxx shall pay interest on such amount at an annual rate equal to
the
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lowest prime or base rate as published by The Wall Street Journal on or nearest
to the date on which the payment is due plus four percent (4%), which interest
shall accrue from the date the payment is due until the date such payment is
made in full. If such rate exceeds the rate allowed by applicable law, then the
highest rate allowed by law shall apply.
6. Commercialization
*
6.2. Photobit shall have the right, no more often than twice each year,
to require Xxxxxx to report to Photobit in writing on its progress in
introducing commercial Licensed Products.
6.3. If Xxxxxx is not fulfilling its obligations under Section 6.1 with
respect to all or any part of the Field then Photobit may so notify Xxxxxx in
writing and require that, within thirty (30) days after Photobit's notice,
Xxxxxx present to Photobit a written plan reasonably acceptable to Photobit
pursuant to which Xxxxxx would promptly commence fulfilling such obligations and
within ninety (90) days after Photobit's acceptance of such plan overcome the
effects of Xxxxxx'x past failure to fulfill such obligations. Photobit's
acceptance of such a plan may not be unreasonably withheld. If Photobit accepts
such a plan presented by Xxxxxx, Xxxxxx thereafter shall carry out the plan. If
Xxxxxx does not present Photobit with such a plan within thirty (30) days after
Photobit's notice to Xxxxxx, if
----------
* The confidential portion has been omitted pursuant to a request for
confidential treatment and the omitted material has been filed
separately with the Commission.
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Photobit reasonably withholds its acceptance of such a plan, or if Xxxxxx does
not carry out a plan accepted by Photobit and thereby fulfill Xxxxxx'x
obligations under Section 6.1 within ninety (90) days after Photobit's
acceptance of such plan, then, in addition to any other rights of Photobit at
law or in equity, Photobit shall have the right, at its option, either to
convert the license and sublicense granted in Sections 3.1(i) and (iii) to a
nonexclusive license and sublicense, or to terminate the license granted in
Section 3.1(i) and the sublicense granted in Section 3.1(iii), in any part of
the Field in which Xxxxxx is not fulfilling its obligations under Section 6.1.
7. Responsibility for Licensed Patent Riqhts
7.1. The parties acknowledge that under the Cal Tech Agreement, Cal Tech
bears the first responsibility for applying for, prosecuting and maintaining the
Licensed Patent Rights, although Photobit has the right to review and comment
upon and approve actions undertaken in the prosecution of patents and
applications, and in some circumstances, Photobit may have the right to apply
for, prosecute or maintain certain Licensed Patent Rights in Cal Tech's name. To
the extent that Photobit is involved in applying for, prosecuting and
maintaining the Licensed Patent Rights, Photobit shall use reasonable efforts to
consult with Xxxxxx concerning matters having a material effect on patent
protection in the Field for the inventions covered by the patents, applications
and invention disclosures listed in Exhibit A.
8. Infringement by Third Party
8.1. In accordance with the Cal Tech Agreement, the parties anticipate
that Cal Tech or Photobit generally will protect the Licensed Patent Rights from
infringement and prosecute infringers when, in their judgment, such action may
be reasonably necessary, proper and justified. To the extent that they do so,
control over any enforcement action, payment of expenses, and the allocation of
any recovery between Cal Tech and Photobit shall be determined in accordance
with the Cal Tech Agreement. To the extent that an infringement is in the Field,
the allocation of Photobit's portion of any recovery between Photobit and Xxxxxx
shall be determined in accordance with Section 8.5. To the extent that an
infringement is
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outside the Field, Xxxxxx shall have no right to any part of the recovery.
8.2. If Xxxxxx (i) supplies Photobit with evidence of infringement of
Licensed Patent Rights in the Field by a third party, (ii) supplies Photobit
with the written opinion of a patent attorney selected by Xxxxxx who is of
recognized stature in the applicable country and who is experienced in the
applicable technical art that an enforcement action against the third party is
warranted by existing law or by a nonfrivolous argument for the extension,
modification or reversal of existing law or the establishment of new law, and
(iii) by written notice requests Photobit to take steps to enforce the Licensed
Patent Rights in the Field, then Photobit shall notify Cal Tech of such request
and consult with Xxxxxx in good faith concerning enforcement of the Licensed
Patent Rights; provided that under no circumstances shall Photobit or Cal Tech
be obligated to enforce the Licensed Patent Rights against any third party. If
Xxxxxx does so, and within six (6) months of the receipt of such evidence and
notice, neither Cal Tech nor Photobit either (a) cause the infringement in the
Field to terminate or (b) commence a legal action against the infringer, then,
to the extent permitted under the Cal Tech Agreement, Xxxxxx may, upon notice to
Photobit, commence an action against the infringer at Xxxxxx'x expense and have
sole control of the action. In addition, if Xxxxxx advises Photobit of
infringement of Licensed Patent Rights in the Field by a third party, Photobit
shall consult with Xxxxxx in good faith concerning enforcement of the Licensed
Patent Rights, and when permitted under the Cal Tech Agreement, Photobit may in
its discretion commence, or permit Xxxxxx to commence, an action against the
infringer more rapidly than required by the foregoing procedures.
8.3. If one party commences an action to enforce the Licensed Patent
Rights, the other party shall fully cooperate with and supply all assistance
reasonably requested by the party commencing such action, including by using its
best efforts to have its employees testify when requested and to make available
relevant records, papers, information, samples, specimens, and the like. A party
commencing such an action shall bear the reasonable expenses incurred by the
other party in providing such cooperation and assistance requested pursuant to
this Section. A party commencing such an action shall keep the other party
informed of the progress of such action, and the other party shall be
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entitled to be represented by counsel in connection with such action at its own
expense.
8.4. If Xxxxxx commences an enforcement action pursuant to Section 8.2,
Xxxxxx shall have the right to settle any claims, but only upon terms and
conditions that are reasonably acceptable to Cal Tech and Photobit. Should
Xxxxxx elect to abandon such an action other than pursuant to a settlement with
the alleged infringer that is reasonably acceptable to Cal Tech and Photobit,
Xxxxxx shall give timely notice to Photobit, which if it so desires, may
continue the action; provided, however, that the sharing of expenses and any
recovery in such suit shall be as agreed upon between the parties.
8.5. To the extent that Photobit commences an enforcement action against
an infringement in the Field as described in Section 8.1, or if Xxxxxx commences
an enforcement action pursuant to Section 8.2, any amounts paid to such party by
third parties as the result of such an action (such as in satisfaction of a
judgment or pursuant to a settlement) shall first be applied to reimbursement of
the unreimbursed expenses (including attorneys' fees) incurred by either party
and to payment of any portion of such amounts that may be payable to Cal Tech
under the Cal Tech Agreement. Seventy-five percent (75%) of any remainder shall
be retained by Schick and twenty-five percent (25%) of any remainder shall be
retained by Photobit.
8.6. Infringement or alleged infringement of Photobit's proprietary
rights in Licensed Photobit Materials in the Field may be enforced in accordance
with the procedures specified in this Article 8 for the enforcement of Licensed
Patent Rights, to the extent that those procedures are applicable to the
particular types of proprietary rights infringed.
9. Benefits of Litiqation, ExPiration or Abandonment
9.1. If one or more patents or particular claims thereof within the
Licensed Patent Rights expire, or are abandoned, or are declared invalid or
unenforceable or otherwise construed by a court of last resort or by a lower
court from whose decree no appeal is taken, or certiorari is not granted with
the period allowed therefor, then the effect thereof hereunder shall be:
(i) That such patents or particular claims shall, as of the date
of expiration or
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abandonment or final decision of invalidity or unenforceability
as the case may be, cease to be included within the Licensed Patent
Rights for the purpose of this Agreement; and
(ii) That such construction so placed upon the Licensed Patent
Rights by the court shall be followed from and after the date of entry
of the decision, and royalties shall thereafter be payable by Xxxxxx
only in accordance with such construction.
9.2. If Xxxxxx challenges the validity of Licensed Patent Rights, Xxxxxx
may not cease paying royalties as of the date validity of the claims in issue
are challenged, but rather may cease paying royalties as to those claims only
after a final adjudication of invalidity of those claims.
10. Term and Termination
10.1. Unless terminated in accordance with the provisions of this
Agreement, this Agreement shall remain in effect until the last of the patents
of the Licensed Patent Rights expires and for any time thereafter that Xxxxxx
continues to make, have made, import, use, offer to sell, sell or otherwise
distribute Licensed Products that embody Licensed Photobit Materials or are
otherwise made, imported, used, offered for sale, sold or otherwise distributed
through the use of Licensed Photobit Materials.
10.2. Photobit shall have the right to terminate this Agreement if
Xxxxxx materially breaches its obligations under this Agreement, including by
failing to make any payment as and when required by this Agreement, and Xxxxxx
fails to remedy the breach within sixty (60) days after receiving notice of the
breach from Photobit. Upon any such termination, Xxxxxx and Related Companies
shall have six (6) months to complete the manufacture of any Licensed Products
that then are work in progress and to sell their inventory of Licensed Products,
provided that Xxxxxx pays the applicable royalties in accordance with Section
5.2.
10.3. Xxxxxx shall have the right to terminate this Agreement upon sixty
(60) days written notice. If Xxxxxx does so, it shall submit all required
reports and make all required payments in accordance with Section 5.2
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10.4. No termination of this Agreement shall relieve Xxxxxx of the
liability for payment of any royalty due for Licensed Products made prior to the
effective date of such termination.
11. Warranties and Negation
11.1. The parties each represent and warrant that they have the right,
power and authority to enter into and to perform their obligations under this
Agreement. Photobit specifically represents and warrants that:
(i) It has the right to grant the licenses and sublicense
granted in Section 3.1;
(ii) It has received no written communication asserting that a
prior knowledge, use, patent, publication, act or event renders
unpatentable any of the claims or inventions to which the Licensed
Patent Rights pertain; and
(iii) It has not entered into and will not enter into any
contract or other arrangement with any third party, including without
limitation any lien, mortgage, encumbrance, license, grant of rights,
release or covenant not to xxx, with respect to the Licensed Patent
Rights or the Licensed Photobit Materials in the Field that is in
conflict with, inconsistent with, or in derogation of the terms of this
Agreement.
11.2. Nothing in this Agreement shall be construed as:
(i) A representation or warranty of Photobit as to the validity
or scope of Licensed Patent Rights or any claim thereof;
(ii) A representation or warranty that any Licensed Product is
or will be free from infringement of rights of third parties;
(iii) An obligation to bring or prosecute actions or suits
against third parties for infringement; or
(iv) Conferring by implication, estoppel or otherwise, any
license or rights under any
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patents of Cal Tech or Photobit other than Licensed Patent
Rights, regardless of whether such other patents are dominant or
subordinate to Subject Technology.
11.3. PHOTOBIT MAKES NO EXPRESS OR IMPLIED WARRANTIES (INCLUDING THE
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE) AND
ASSUMES NO RESPONSIBILITIES WHATEVER WITH RESPECT TO SERVICES OR WITH RESPECT TO
THE MANUFACTURE, IMPORT, USE, SALE, OR OTHER DISTRIBUTION BY XXXXXX OR RELATED
COMPANIES OF LICENSED PRODUCTS.
12. Confidentiality
12.1. For the purpose of this Article 12, the term "Confidential
Information" means any material or information relating to a party's research,
development, trade secrets and business operations and affairs that the party
treats as confidential. Licensed Photobit Materials shall be deemed Confidential
Information of Photobit. The term "Receiving Party" means a party that has
access to Confidential Information of the other party (the "Disclosing Party").
12.2. A Receiving Party shall not use the Disclosing Party's
Confidential Information for any purpose other than in accordance with this
Agreement and shall not disclose Confidential Information to any person other
than its employees and its independent contractors subject to a nondisclosure
obligation comparable in scope to this Article, which employees and independent
contractors have a need to know such Confidential Information.
12.3. Notwithstanding Section 12.2, a Receiving Party may use for any
purpose or disclose any material or information that (i) is or becomes publicly
known through no fault of the Receiving Party; (ii) is developed independently
by the Receiving Party; (iii) is known by the Receiving Party when disclosed by
the Disclosing Party if the Receiving Party does not then have a duty to
maintain its confidentiality; or (iv) is rightfully obtained by the Receiving
Party from a third party not obligated to preserve its confidentiality. A
Receiving Party also may disclose Confidential Information to the extent
required by a court or other governmental authority, provided that (a) the
Receiving Party gives the Disclosing Party reasonable notice of the disclosure,
(b) the Receiving Party uses reasonable
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efforts to resist disclosing the Confidential Information, and (c) the Receiving
Party cooperates with the Disclosing Party on request to obtain a protective
order or otherwise limit the disclosure.
12.4. The parties acknowledge that either party's breach of Section 12.2
would cause the other party irreparable injury for which it would not have an
adequate remedy at law. In the event of a breach, the non-breaching party shall
be entitled to injunctive relief in addition to any other remedies it may have
at law or in equity.
13. Indemnity
13.1. Photobit shall defend, indemnify and hold harmless Xxxxxx and its
directors, officers, agents, employees and shareholders from and against all
claims, liabilities, suits, losses, damages and expenses, including costs and
reasonable attorney's fees, ("Claims") relating to or resulting from any actual
or alleged infringement of any copyright or mask work right by Licensed Photobit
Materials. Xxxxxx shall notify Photobit promptly of any Claims against Xxxxxx
covered by the foregoing indemnity. Photobit shall have the sole right to
control and defend or settle any litigation within the scope for the indemnity,
through counsel selected by Photobit and reasonably acceptable to the
indemnified parties, except that in the case of a conflict of interest between
Photobit and an indemnified party, Photobit shall provide separate counsel for
the indemnified party, which counsel shall be selected by the indemnified party.
All indemnified parties shall cooperate to the extent necessary in the defense
of any Claims. Photobit hereby waives any rights that it may acquire by way of
subrogation by reason of any indemnification paid hereunder.
13.2. Xxxxxx shall defend, indemnify and hold harmless Photobit, Cal
Tech, and their respective directors or trustees, officers, agents, employees
and shareholders from and against all Claims relating to or resulting from any
actual or alleged infringement of any patent, copyright, trade secret, or other
proprietary right other than the Licensed Patent Rights by any product, device
or system made, imported, used, sold or otherwise distributed by Xxxxxx or any
Related Company, except to the extent that such claims necessarily result from
infringement of any copyright or mask work right by Licensed Photobit Materials
and are subject to
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Section 13.1, and any other Claims relating to or resulting from the
manufacture, import, use, sale or other distribution of such products, devices
or systems (including but not limited to Claims for personal injury, death, or
property damage). Photobit shall notify Xxxxxx promptly of any Claims against
Photobit covered by the foregoing indemnity. Xxxxxx shall have the sole right to
control and defend or settle any litigation within the scope of indemnity,
through counsel selected by Xxxxxx and reasonably acceptable to the indemnified
parties, except that in the case of a conflict of interest between Xxxxxx and an
indemnified party, Xxxxxx shall provide separate counsel for the indemnified
party, which counsel shall be selected by the indemnified party. All indemnified
parties shall cooperate to the extent necessary in the defense of any Claims.
Xxxxxx hereby waives any rights that it may acquire by way of subrogation by
reason of any indemnification paid hereunder.
14. Insurance
14.1. At such time as Xxxxxx begins to sell or otherwise distribute
Licensed Products, Xxxxxx shall at its sole expense, obtain policies of
comprehensive general liability insurance issued by insurers acceptable to
Photobit in amounts not less than one million dollars ($1,000,000) per incident
and five million dollars ($5,000,000) in annual aggregate and naming those
indemnified under Section 13.2 as additional insureds. Such insurance shall
provide (i) product liability coverage and (ii) broad form contractual liability
coverage for the indemnity of Article 13. Such insurance shall be primary
coverage without right of contribution from any Photobit insurance. Insurance
obtained by Photobit is for the exclusive benefit of Photobit and will not inure
to the benefit of Xxxxxx. Such insurance policies obtained by Xxxxxx shall
provide that they may not be canceled or modified unless Photobit is given
thirty (30) days prior written notice by the insurer. Xxxxxx shall maintain such
insurance for at least four (4) years after Xxxxxx and Related Companies have
ceased commercial distribution or use of any Licensed Product.
14.2. Xxxxxx shall provide Photobit with written evidence of such
insurance upon request of Photobit. Xxxxxx shall provide Photobit with notice at
least thirty (30) days prior to any cancellation, non-renewal or material change
in such insurance, to the extent
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Xxxxxx receives advance notice of such matters from its insurer.
15. Notices
15.1. All notices sent under this Agreement shall be in writing and (i)
hand delivered; (ii) transmitted by telex, legible telecopy or cable, with a
copy sent concurrently by certified mail, return receipt request; or (iii)
delivered by prepaid overnight courier.
15.2. Notices shall be sent to the parties at the following addresses or
such other addresses as the parties subsequently may provide by written notice:
If to Photobit:
0000 Xxxxxxxx Xxxxxxxxx
Xxxxx 000
Xx Xxxxxxxxx, Xxxxxxxxxx 00000
Attention: Xx. Xxxxxxx X. Xxxxxx
Phone: (000)000-0000
Fax: (000)000-0000
If to Xxxxxx:
00-00 00xx Xxxxxx
Xxxx Xxxxxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx Xxxxxx
Phone: (000)000-0000
Fax: (000)000-0000
and a duplicate copy to
Fitzpatrick, Cella, Xxxxxx & Xxxxxx
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxxx X. Xxxxxxxxx, Esq.
Phone: (000)000-0000
Fax: (000)000-0000
16. Miscellaneous
16.1. Neither party shall advertise or otherwise publicize the existence
of this Agreement or the relationship between the parties without the prior
written consent of the other party.
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16.2. Xxxxxx shall not use the names of Photobit, Cal Tech or JPL in any
advertising or publicity material, or make any form of representation or
statement which would constitute an express or implied endorsement by Photobit,
Cal Tech or JPL of any Licensed Product, and Xxxxxx shall not authorize any
third party to do so, without first having obtained written approval from the
appropriate entity.
16.3. Neither party shall disclose the terms and conditions of this
Agreement to any third party other than its attorneys, consultants, accountants,
auditors, shareholders and others to whom a party has a bona fide business
reason for disclosing the terms and conditions of the Agreement; provided that
each party may disclose the terms and conditions of this Agreement as may be
required by law or to enforce the provisions hereof; and further provided that
Photobit may provide a copy of this Agreement to Cal Tech.
16.4. Xxxxxx shall cause all Licensed Products that are covered by, or
made by a process covered by, any valid claim of any Licensed Patent Rights to
be manufactured substantially in the United States.
16.5. Xxxxxx shall cause all Licensed Products that are covered by, or
made by a process covered by, any valid claim of any Licensed Patent Rights to
be marked with appropriate notice that such Licensed Products are patented. To
the extent that Licensed Products are made, offered for sale, sold or otherwise
distributed in the United States, the form of such notice shall conform to the
requirements of 35 U.S.C. ss. 287(a). Xxxxxx also shall comply with any other
notice or legend requirements of applicable law.
16.6. This Agreement is subject in all respects to the laws and
regulations of the United States of America, including the Export Administration
Act of 1979, as amended, and any regulations thereunder.
16.7. Nothing in this Agreement shall be construed as creating a
partnership, joint venture or agency relationship between the parties, or as
authorizing either party to act as agent for the other.
16.8. This Agreement shall be governed by and construed in accordance
with the laws of the State of California, without regard to its conflict of laws
principles.
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16.9. The provisions of this Agreement are severable, and the
unenforceability of any provision of this Agreement shall not affect the
enforceability of the remainder of this Agreement. The parties acknowledge that
it is their intention that if any provision of this Agreement is determined by a
court or arbitrator to be unenforceable as drafted, that provision should be
construed in a manner designed to effectuate the purpose of that provision to
the greatest extent possible under applicable law.
16.10. The rights and remedies provided in this Agreement and all other
rights and remedies available to either party at law or in equity are, to the
extent permitted by law, cumulative and not exclusive of any other right or
remedy now or hereafter available at law or in equity. Neither asserting a right
nor employing a remedy shall preclude the concurrent assertion of any other
right or employment of any other remedy, nor shall the failure to assert any
right or remedy constitute a waiver of that right or remedy.
16.11. Xxxxxx shall not assign any of its rights or obligations under
this Agreement to any third party without the prior written consent of Photobit,
except that without the prior written consent of Photobit, Xxxxxx may assign
this Agreement to a purchaser of substantially all of the assets of Xxxxxx,
provided that the purchaser agrees in writing to assume all of Xxxxxx'x
obligations under this Agreement.
16.12. This Agreement shall be binding upon and inure to the benefit of
the parties, their successors, permitted assigns and legal representatives.
16.13. All headings in this Agreement are included solely for convenient
reference and shall not affect the meaning or interpretation of this Agreement.
16.14. This Agreement may be executed in counterparts, each of which
shall be deemed to be original but all of which together shall constitute a
single instrument.
16.15. The provisions of Articles 5 (Records, Reports and Payment), 11
(Warranties and Negation), 12 (Confidentiality), 13 (Indemnity), 14 (Insurance),
15 (Notices) and 16 (Miscellaneous) shall remain in effect after the expiration
or termination of this Agreement.
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16.16. This Agreement sets forth the complete agreement of the parties
concerning the subject matter hereof and supersedes all prior agreements between
the parties concerning the subject matter hereof. No claimed oral agreement
in respect thereto shall be considered as any part hereof.
16.17. No waiver of or change in any of the terms hereof subsequent to
the execution hereof claimed to have been made by any representative of either
party shall have any force or effect unless in writing, signed by duly
authorized representatives of the parties.
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their respective duly authorized officers:
PHOTOBIT, LLC XXXXXX TECHNOLOGIES, INC.
By: /s/ Xxxxxxx Xxxxxx By: /s/ Xxxxx Xxxxxx
---------------------------- ----------------------------
Name: Xxxxxxx Xxxxxx Name: Xxxxx Xxxxxx
-------------------------- --------------------------
Title: CEO Title: President
------------------------- -------------------------
Date: June 24, 1996 Date: 6/24/96
-------------------------- ---------------------------
EXHIBIT A
*
---------
* The confidential portion has been omitted pursuant to a request for
confidential treatment and the omitted material has been filed separately with
the Commission.
EXHIBIT B
*
---------
* The confidential portion has been omitted pursuant to a request for
confidential treatment and the omitted material has been filed separately with
the Commission.
