Exhibit 10.8
LICENSE AGREEMENT
This License Agreement (this "AGREEMENT"), dated as of September 17,
2008, is made by and between Duoyuan Investments Ltd., a company limited by
shares organized under the laws of British Virgin Islands with its principal
office located at Xx. 0 Xxxxxxx Xxxx, Xxxxxx Xxxxxxxxxx Xxxxxxxxxxx Xxxx,
Xxxxxxx 000000, Xxxxx ("LICENSOR"), and Duoyuan Global Water Inc., a company
limited by shares organized under the laws of the British Virgin Islands with
its principal office located at Xx. 0 Xxxxxxx Xxxx, Xxxxxx Xxxxxxxxxx
Xxxxxxxxxxx Xxxx, Xxxxxxx 000000, Xxxxx ("LICENSEE").
Whereas, pursuant to a trademark assignment agreement between Licensor and
Duoyuan Clean Water Technology Industries (China) Co., Ltd. ("INITIAL OWNER"), a
company organized under the laws of People's Republic of China ("PRC"), Licensor
was assigned the marks set forth on Schedule A attached hereof ("GROUP A MARKS")
from Initial Owner (the "TRADEMARK ASSIGNMENT") and has obtained the approval of
the Trademark Office of the State Administration for Industry and Commerce of
the PRC (the "CTO") thereon; and
Whereas, Initial Owner has adopted the marks set forth on Schedule B
attached hereof (the "GROUP B MARKS") and applied to register the Group B Marks
with the CTO; and
Whereas, in connection with that certain Share Purchase Agreement dated as
of February 5, 2008 by and among Licensor, GEEMF III Holdings MU, a private
company limited by shares organized under the laws of the Republic of Mauritius
("GEEMF"), and certain other parties (the "PURCHASE AGREEMENT"), pursuant to
which GEEMF has acquired certain ordinary shares of the Licensee and, as a
condition to such transaction, has required that Licensor, upon Licensor's
receipt of the approval by the CTO of the Trademark Assignment, grant an
exclusive royalty-free, perpetual license to use the Licensed Marks, under the
terms of this Agreement.
Now, therefore, in consideration of the mutual covenants of the parties and
for good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereby agree as follows:
1. License. Subject to Section 6 below, Licensor hereby grants to Licensee
an exclusive, royalty-free and perpetual license (the "LICENSE") to use and to
sublicense the Group A Marks for the Principal Business (as defined in the
Purchase Agreement). Licensor will not transfer or license the Group A Marks to
any third party without the prior written consent of the Licensee.
2. Use of Xxxx. When using the Licensed Marks under this Agreement,
Licensee undertakes to comply substantially with all laws pertaining to
trademarks, including compliance with marking requirements.
3. Covenant to License the Group B Marks. In the event that the Initial
Owner assigns the Group B Marks to Licensor following the approval of the
registration of the Group B Marks by the CTO (the "GROUP B MARKS ASSIGNMENT"),
Licensor hereby covenants that, as soon as practicable following the approval
by the CTO of the Group B Marks Assignment, Licensor will enter into a license
agreement with Licensee, the form and substance of which shall
be equivalent in all material respects with this Agreement, pursuant to which
Licensee shall have an exclusive, royalty-free, and perpetual license to use the
Group B Marks.
4. Resolution of Disputes. The parties agree to negotiate in good faith to
resolve any dispute about whether the obligations of Licensee or Licensor are
being satisfied.
5. Extent of License. The license granted in this Agreement may not be
transferred without the written consent of Licensor.
6. Term and Termination. The rights granted in this Agreement shall
forthwith cease and terminate without prior notice or legal action by Licensor
upon the consummation of a Liquidation Event. For the purpose of this Agreement,
the term "LIQUIDATION EVENT" shall mean any liquidation, dissolution or winding
up of Licensee, either voluntary or involuntary, or any of the following events:
(i) a sale, conveyance or disposition of all or substantially all of the assets
of Licensee, (ii) a consolidation, merger or other business combination of
Licensee with or into any other company or companies in which the existing
shareholders of Licensee, immediately prior to the consummation of such
consolidation, merger or business combination, do not retain a majority of the
voting power in the surviving company; excluding for this purpose redomiciling
of Licensee.
7. Ownership of Xxxx. Licensee acknowledges Licensor's exclusive right,
title and interest in and to the Licensed Marks and any registrations that may
issue thereon, and will not at any time do or cause to be done any act or thing
impairing or tending to impair part of such right, title and interest. Licensee
agrees to cooperate with Licensor in satisfying any requirements for protection
or registration of the Licensed Marks.
On termination in any manner provided herein of the License, within
forty-five (45) days Licensee will cease and desist from all use of the Licensed
Marks in any way.
8. Notices. Any notices required or permitted to be given under this
Agreement shall be deemed sufficiently given if mailed by registered mail,
postage prepaid, addressed to the party to be notified at its address shown
above, or at such other address as may be furnished in writing to the notifying
party.
9. Choice of Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York, without regard to its
conflict of laws rules.
IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.
Licensor
Duoyuan Investments Ltd.
Date: By: /s/ Xxxxxx Xxx
--------------- ---------------------
Printed Name: Xxxxxx Xxx
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Title: Chairman
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Licensee
Duoyuan Global Water Inc.
Date: By: /s/ Xxxxxx Xxx
--------------- ---------------------
Printed Name: Xxxxxx Xxx
-----------
Title: Chairman & CEO
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SCHEDULE A
Group A Marks
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CERTIFICATE NO. OF CATEGORY OF
RESISTED TRADEMARKS TRADEMARK REGISTRATION PRODUCT TERM
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"Duoyuan" word trademark 688666 9 5/7/1994 - 5/6/2014
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"Duoyuan" word trademark 733257 1 3/7/1995 - 3/6/2015
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"Duoyuan" word trademark 737352 7 3/28/1995 - 3/27/2015
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"Duoyuan" word trademark 737422 32 3/28/1995 - 3/27/2015
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"Duoyuan" word trademark 763189 11 8/28/1995 - 8/27/2015
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"Duoyuan" graphic trademark 782129 1 10/14/1995 - 10/13/2015
------------------------------------------------------------------------------------------------------
"Duoyuan" graphic trademark 784829 33 10/21/1995 - 10/20/2015
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"Duoyuan" graphic trademark 796442 7 12/7/1995 - 12/6/2015
------------------------------------------------------------------------------------------------------
"Duoyuan" graphic trademark 796548 11 12/7/1995 - 12/6/2015
------------------------------------------------------------------------------------------------------
"Duoyuan" graphic trademark 796902 32 12/7/1995 - 12/6/2015
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"Duoyuan" graphic trademark 797884 37 12/7/1995 - 12/6/2015
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"Duoyuan" graphic trademark 801857 39 12/21/1995 - 12/20/2015
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"Duoyuan" graphic trademark 805852 40 1/7/1996 - 1/6/2016
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"Duoyuan" graphic trademark 880276 3 10/14/1996 - 10/13/2016
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"Duoyuan" word trademark 977956 40 4/7/1997 - 4/6/2017
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"Duoyuan" word trademark 983904 37 4/14/1997 - 4/13/2017
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"MHW" word trademark 1618029 11 8/14/2001 - 8/13/2011
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"Duoyuan" graphic trademark 1944127 27 10/14/2002 - 10/13/2012
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"Duoyuan" word trademark 1949289 36 11/28/2002 - 11/27/2012
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"Duoyuan" word trademark 1955468 41 11/28/2002 - 11/27/2012
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"Duoyuan" word trademark 1953548 39 12/7/2002 - 12/6/2012
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SCHEDULE B
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REGISTERED TRADEMARK APPLICATION NO. CATEGORY OF PRODUCT TERM
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"Duoyuan" word trademark 5830463 38 1/5/2007
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"Duoyuan" word trademark 5830480 36 1/5/2007
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"Duoyuan" word trademark 5830481 40 1/5/2007
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"Duoyuan" word trademark 5830482 4 1/5/2007
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"Duoyuan" graphic trademark 5768380 5 12/6/2006
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