EXHIBIT 10.24
TECHNOLOGY TRANSFER PURCHASE AND ROYALTY FEE AGREEMENT
THIS AGREEMENT, entered into this 30th day of September, 1997 by and
between Allied Technology Group, Incorporated, hereinafter refer to as "ATG",
with office at 00000 Xxxxxxx Xxxxxxxxx, Xxxxxxx, Xxxxxxxxxx 00000 and Regent
Star Ltd, hereinafter refer to as "Purchaser", with office at 000 Xxxx Xxx
Xxxxxx, 00/X, Xxxx Xxxx.
WITNESSETH
WHEREAS, the parties have entered into a Non-Disclosure Agreement, and
hereby reaffirm the content and affect of the same as part of this Agreement;
and
WHEREAS, ATG has acquired, developed, permitted and constructed a
"vitrification" system, hereinafter referred to as the "SafGlas system", which
is used to volume reduce selected materials, and to volume reduce and stabilize
certain hazardous, mixed and low-level nuclear materials. ATG also applies other
non-vitrification, non-thermal, waste treatment and recycling systems and
processes in its business; and
WHEREAS, ATG has been operating a permitted facility in the city of
Richland, Washington since 1989, for the processing and treatment of low level
nuclear material, and another permitted facility in the city of Fremont,
California since 1995, for the recycling of spent fluorescent lamps. ATG has
designed, permitted, constructed and operated all such equipments and processes
at its facilities. The glassmelter in Richland, the mercury retort unit in
Fremont, various commercial grade equipment and components are purchased from
industry vendors and suppliers, and therefore are not subject to the technology
transfer agreement. "Technology" is defined as: (1) the SafGlas system except
the glassmelter and other commercial grade equipments, (2) ATG Supercompaction
system, (3) ATG Fluorescent Lamp recycling system, (4) ATG waste processing
know-how, operating and safety procedures, and licensing expertise, and (5)
process design and technical drawings, with the exception of commercial grade
equipment and instruments and (6) Technology is intended for commercial and
industrial use only, and does not include any application for military and
defense use; and
WHEREAS, Purchaser is in the business of international trading and has
experience in both manufacturing and trading with mainland China and Taiwan.
Purchaser also has technical knowledge and experiences in managing construction
and operation of manufacturing and processing plants in Asia. Purchaser is
interested to form a business venture with ATG to promote ATG technology and
business in mainland China and Taiwan.
CERTAIN PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH A REQUEST
FOR CONFIDENTIAL TREATMENT PURSUANT TO RULE 406 PROMULGATED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED.
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WHEREAS, Purchaser desires to acquire ATG's treatment processes and
technology on an exclusive basis in Taiwan, Hong Kong, Macau and mainland China.
"Exclusive Territory" is therefore defined as Taiwan, Hong Kong, Macau and the
Peoples Republic of China. Purchaser desires to sell ATG product and services
and to apply such ATG treatment processes and technology within the Exclusive
Territory. Any other territories outside of the Exclusive Territory is not
included in the Agreement, any marketing and/or use of the technology by the
Purchaser, its associate companies, or its teaming partners, are therefore
specifically prohibited;
WHEREAS, the parties hereto desire to associate themselves with each other
for the purpose of marketing and/or use of the Technology in the Exclusive
Territory. The Purchaser may include other individuals or companies in the
Exclusive Territory from time to time. Any teaming partner Purchaser wishes to
add to its team requires ATG's prior written approval and acceptance. Purchaser
shall not sublicense or transfer any ATG technology to any third party;
WHEREAS, the parties acknowledge that this Agreement supersedes any and all
other negotiation or agreements.
NOW THEREFORE, in consideration of the promises, mutual agreements and
covenants hereinabove and hereinafter contained, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, it
is hereby agreed by and between the parties hereto as follows:
1. Purchaser hereby purchases the Technology from ATG which includes the
design, engineering data and drawing, calculations, license
application, operating procedures. In consideration of the receipt of
such Technology, Purchaser shall pay ATG as follows:
SafGlas Waste Processes: $ [*]
Fluorescent Lamp Recycling System: [*]
Operating Procedures: [*]
Total Amount: $1,000,000
2. ATG Asia Ltd shall be solely responsible for providing all initial
marketing expenses, office space and other related administrative
costs. ATG will be responsible for all costs, including travel cost,
relating to engineering support and technical presentations in the
initial marketing of ATG Technology in the Exclusive Territory.
[*] CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.
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3. A new business entity, ATG Asia Ltd., shall be formed in Hong Kong as
soon as all documents are executed. Purchaser shall be responsible for
all marketing and ATG shall provide technical support to Purchaser.
ATG shall have no capital ownership of the newly form entity. However,
ATG shall be paid [CONFIDENTIAL INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] percent
([CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION]%) of any profit generated by ATG
Asia Ltd. Such amount shall be paid annually, ATG shall have the right
to audit and inspect the books and record of ATG Asia Ltd. In
addition, Purchaser shall provide ATG Asia Ltd's quarterly financial
statements to ATG within forty five (45) days from the end of the
quarter. This Agreement will cover new contracts within the Exclusive
Territory, regardless the location where waste material may be
processed. Purchaser will conduct all business related to ATG
Technology, products and services under ATG Asia Ltd only, and will
not conduct any related business under any other business entity or
trade names.
4. In consideration of the Technology and know-how provided by ATG, ATG
Asia Ltd will pay a royalty of [CONFIDENTIAL INFORMATION OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] percent
([CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION] to ATG, of any sales relating to
vitrification system & products. This royalty fee of [CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION] percent shall not put ATG products
noncompetitive in the Exclusive Territory, or shall be renegotiated in
good faith.
5. ATG may terminate the Agreement if total sales in the Exclusive
Territory is less than $[CONFIDENTIAL INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] in the first
24 months. Upon receipt of the termination notice, Purchaser shall
immediately return all technical data and all other documents related
to ATG Technology in Purchaser's possession, and shall not use any of
the ATG Technology anywhere after termination. Upon termination, ATG
Asia Ltd shall be dissolved, any outstanding profits due ATG shall be
distributed upon dissolution.
6. Purchaser shall buy all of its products and services from ATG on an
exclusive basis whenever ATG price is competitive. ATG shall sell its
products and services to the Purchaser at the same commercial price
ATG offers its clients in the United States, from either the ATG
commercial catalog price list or from government approved rates,
wherein applicable.
7. ATG Asia Ltd shall arrange all construction financing, and shall also
arrange letter of credits in U.S. dollars to cover all ATG products.
Such letter of credits shall be acceptable to ATG' 5 commercial bank
and/or major material suppliers. Depending on the size of the
contract, normal commercial volume discount shall be available to ATG
Asia Ltd
8. A TG Asia Ltd may reference and disclose ATG' 5 track record and
experience in the marketing of ATG products and services, only
according to materials provided by ATG. All announcements for the
general public require ATG's prior written approval.
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9. ATG shall be solely responsible for its facility-specific permitting
as necessary to support any R&D, or process demonstration required to
be conducted in the U.S.
10. During normal office hour, and upon reasonable prior notice to ATG,
Purchaser and its clients may tour ATG's facilities. Foreign nationals
may be subject to certain applicable rules and regulations, certain
property, area, equipment or documents may or may not be available for
inspection.
11. The parties agree that the exclusive agreement and its exclusive
arrangements are applicable to both parties. As such, Purchaser and
its teaming partners will not represent, market or use other competing
technology, product and services offered by ATG's competitors in the
Exclusive Territory. ATG will not sell or provide any ATG products or
services to any party other than the Purchaser or ATG Asia.
12. All technical and engineering personnel shall be provided or appointed
by ATG. Purchaser shall assist ATG in the recruitment of local
subcontractors. Purchaser shall not modify, change or disassemble any
ATG equipment or processes without ATG's prior approval. All
replacement parts must be approved by ATG technical personnel.
13. The parties agree that Purchaser shall focus its marketing efforts in
the commercial power industry, nuclear or non-nuclear, chemical
plants, oil and gas industry for the ATG products and services.
Purchaser agrees that should it choose not to pursue a business
opportunity when offered, then ATG may pursue such business
opportunity(s) so declined by Purchaser. Should ATG choose not to
pursue a business when offered, Purchaser may pursue such opportunity
so so declined by ATG. All business opportunity offer or decline must
be in writing within thirty days from receipt of proposal.
14. ATG warrants that the SafGlas vitrification system provided hereunder
will process low-level, nuclear, and/or hazardous wastes at a rate of
not less than 330 lbs per hour. Notwithstanding the foregoing, ATG
does not represent nor warrant that the process can accept every kind
of low level radioactive, or hazardous material. On the other hand,
ATG only warrants those materials listed on ATG's existing licenses as
acceptable material suitable for treatment.
15. ATG Asia agrees to hold ATG harmless and to protect, defend and
indemnify ATG against losses and damages due to ATG Asia's negligence.
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16. ATG agrees to hold Purchaser harmless and to indemnify Purchaser for
losses and damages due to ATG's negligence.
17. Under this Agreement, ATG warrants that it has full authority and
rights to all of its technology and processes, know-how, operating and
safety procedures being operated presently at its facilities. ATG
further warrants that it has full authority and rights to sell its
technology, processes, designs, know-how and procedures to Purchaser.
Commercial grade equipments from suppliers and vendors are not part of
the technology transfer. ATG reserves the right to replace any
commercial supplier and/or vendor in the future with comparable or
better quality products.
18. Neither party hereto shall sell, assign or in any manner transfer its
interest, or any part thereof, in this Agreement without first
obtaining the written consent of the other party or parties hereto.
Such consent shall not be unreasonably withheld. ATG hereby
acknowledges that from time to time a teaming partner is necessary in
the local area to be brought in as part of the team, however, ATG must
approve in writing such teaming partner/s of Purchaser.
19. In the event of bankruptcy, dissolution or death of any parties
hereto, this agreement shall immediately upon the occurrence thereof,
cease and terminate with respect to the party thus affected. The
successors, receivers, trustees or other legal representatives of the
party thus affected shall cease to have any interest whatsoever in
this agreement. In any such event the remaining party or parties shall
have the right to carry out and complete the purpose of this
Agreement.
20. This agreement shall remain in effect unless terminated by ATG
provided for in Section 5. The term of this agreement is five (5)
years with an automatic extension of another five years at the end of
the fifth year unless either party gives written notice of intention
to terminate this agreement after the fifth year, in which event this
agreement shall terminate thirty days from the date of mailing of such
notice by either party.
21. Should ATG or Purchaser materially default on any of its obligations
under this agreement, in addition to legal remedies which may be
available to it, the non defaulting party may at its sole option send
to the defaulting party written notice of its intention to terminate
this agreement. Upon such termination of the term of this agreement,
all rights, duties and obligations of the parties hereunder shall
terminate, except for those which may be prescribed by law through
legal remedies which may be available to the non-defaulting party and
as otherwise
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provided for herein and with the exception of any and all obligations
of the parties which have heretofore accrued.
22. In all activities hereunder, each party is an independent contractor
and shall be solely responsible for all expenses incurred, including,
without limitation, operation of its offices, sales and service staffs
and activities, other than as herein provided.
23. Upon the execution of this Agreement, any prior Agreement with any
other party or person giving such entity or person any portion within
the Exclusive Territory shall be terminated, so that Purchaser, under
the name of ATG Asia Ltd., is the only authorized exclusive
representative for ATG in the Exclusive Territory.
24. This agreement shall be constructed and interpreted in accordance with
the laws of the State of California.
25. The terms and conditions set forth herein constitute the entire
agreement between the parties and supersedes all prior agreements or
arrangements, written or oral, between ATG and Purchaser. This
agreement shall not be amended or changed or modified except by an
instrument in writing referencing this agreement and executed by
authorized agents of both parties.
26. The parties hereto agree to work together to market the use of the ATG
technology and systems for uses as outlined herein. If either party
requests marketing support from the other, the parties agree to
provide such support within reason and at their own expense. As part
of said marketing support to be provided by ATG to Purchaser, ATG
acknowledges and agrees that Purchaser shall have reasonable access to
ATG premises. Such access will be permitted only during normal
business hours and days of operation. An advance notice of at least
five days will be required.
27. Regent Star Ltd and ATG Asia Ltd, shall not compete with ATG outside
of the Exclusive Territory, in the same business ATG presently offers.
ATG shall not compete with Regent Star Ltd and ATG Asia Ltd within
the Exclusive Territory in the same business ATG presently offers.
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IN WITNESS WHEREOF, the parties herein have caused this Agreement to be executed
by duly authorized representatives of both parties to be effective on the day
and year first above written.
REGENT STAR LLC ATG, INC.
/s/ Xxxxxxxx Xxxx /s/ Xxxxxx Xxxx
-------------------------------- ---------------------------------
Xxxxxxxx Xxxx, President Xxxxxx Xxxx, President
ATG Asia, Ltd
/s/ Xxxxxxxx Xxxx
--------------------------------
Xxxxxxxx Xxxx, President
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ADDENDUM #1
TECHNOLOGY AND ROYALTY AGREEMENT
This Agreement is made this 29th day of January 1998 to cover the marketing of
the copper tubing procurement from the Taiwan Power Company.
WHEREAS ATG has been working on this project since 1996. Regent Star and A TG
Asia Ltd believe that they have technical and marketing know-how and can improve
the success of the winning of the contract.
NOW THEREFORE, both parties agree to allow Regent Star and A TG Asia Ltd to
represent ATG in Taiwan for the marketing of such project. ATG will pay ATG Asia
Ltd a fee in the amount of [CONFIDENTIAL INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION]% of its gross
processing revenue, after deducting shipping and transportation costs. Such fee
will be paid within five days upon the receipt of processing costs from Taiwan
Power Company.
Both parties herein agree to the above terms and conditions of the copper tubing
project for Taiwan Power Company.
______________________________
Xxxxxxxx Xxxx, President
Regent Star LLC
______________________________ ______________________________
Xxxxxxxx Xxxx, President Xxxxxx Xxxx, President
ATG Asia, Ltd ATG Inc
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NONDISCLOSURE AND CONFIDENTIALITY AGREEMENT
1. Parties. This nondisclosure Agreement, the "Agreement", is made and entered
into as of this 30th day of September l997, between ATG, Inc., the
"Disclosing Party", and Regent Star, the "Receiving Party".
2. Purpose of Agreement. The Disclosing Party intends to make certain
disclosures, whether written, verbal and/or visual inspection, of
Confidential Information, as defined below, to Receiving Party. This
Agreement is intended to define the rights and duties of the parties with
respect to such Confidential Information which may be revealed to Receiving
Party by the Disclosing Party. All parties agree and acknowledge that this
Agreement is supported by fair and reasonable consideration in money or
monies worth, is governed exclusively by the laws of the United States of
America, State of California, and that all parties hereto voluntarily
consent to said jurisdiction and selected courts.
3. Confidential Information. For purposes of this Agreement the "Confidential
Information" shall include:
a. All information of a technical nature such as processes, know how,
trade secrets, programs, formulae, machines, discoveries, inventories,
techniques, studies, research projects, development plans, notes,
memoranda, reports, records, manual drawings, photographs, videos,
blueprints or other documents whether patentable or not relating to
patent application and the resulting letters, patent and other
intellectual property product(s);
b. Financial information;
c. Customer and vendor lists, marketing plans and surveys and other
marketing information; and,
d. Other similar information which the Disclosing Party considers and
treats as confidential.
Any "Confidential Information" provided in writing or print/reproduction form by
the Disclosing Party shall be clearly marked as "Confidential". Any Information
provided orally shall be considered as "Confidential Information".
4 Restrictions on Confidential Information. With respect to any Confidential
Information disclosed to Receiving Party by the Disclosing Party:
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a. The Confidential Information shall not be further disclosed, to any
person outside of Receiving Party's organization, and shall only be
disclosed within Receiving Party's organization on a "need-to-know"
basis to individuals who have been apprised of the confidential nature
of the information and agree to be bound by the disclosure, use and
copying restrictions set forth herein;
b. The Confidential Information shall be treated according to the same
internal security procedures and with the same degree of care
regarding its secrecy and confidentiality as similar information of
Receiving Party is treated within Receiving Party's organization;
c. The Confidential Information shall remain the sole and exclusive
property of the Disclosing Party. Nothing in this Agreement, nor
actions of the parties hereto, shall be construed as granting a right
or a license of any kind or nature, whether for use, application,
duplication, research and development (R&D), or otherwise, by the
Disclosing Party to Receiving Party with respect to any Confidential
Information disclosed hereunder;
d. The Confidential Information and all copies shall be immediately
resumed to the Disclosing Party at the Disclosing Party's request and
upon such request, such Confidential Information shall be returned no
later than 24 hours after such request; provided, further that
Receiving Party shall not make or keep any copies of any Confidential
Information returned;
e. Use or disclosure of Confidential Information by the directors,
officers, employees, agents or representatives of a parent, subsidiary
or an affiliate of Receiving Party shall be deemed the act of
Receiving Party for purposes of this Agreement;
f Receiving Party shall give notice to the Disclosing Party of any
attempt via legal process to obtain any Confidential Information and
agrees to cooperate with the Disclosing Party in defending against any
such attempt.
5. Employee Obligations Receiving Party agrees to inform any employee or other
person in Receiving Party's organization of the confidentiality obligations
imposed by this Agreement, and to use its best efforts to require such
employees to agree to be bound by the disclosure, use and copying
restrictions set forth herein.
6. Miscellaneous
a. For breach hereof, the party hereto so wronged shall have all remedies
for damages and claims arising thereby, whether such be legal or
equitable.
b. Captions in this Agreement are for ease of the reference only, and
should not be
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considered in the construction of this Agreement.
c. This Agreement constitutes the entire agreement between the parties
regarding the subject matter hereof, and supersedes any prior or
contemporaneous agreements, whether oral or written, between the
parties regarding the same.
d. This Agreement may be modified only in writing signed by the parties.
e. Failure by a party to enforce any provisions of this Agreement or to
exercise any option hereof, is not to be construed as a present or
future waiver of such provisions or option.
f. The provisions of this Agreement are to be considered as severable,
and in the event that any provision is held to be invalid or
unenforceable, the parties intend the remaining provisions should
remain in full force and effect.
g. There is no third party beneficiary to this Agreement.
h. This Agreement expires seven (7) years from the last day of execution
by the parties to this Agreement. Prior to expiration of this
Agreement, Receiving Party shall, without any further action required
on the part of Disclosing Party, return to Disclosing Party all
Confidential Information and copies thereof.
IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date
first above written.
"Disclosing Party" "Receiving Party"
ATG, INC. Name: Regent Star LLC
-----------------------------
By: /s/ Xxxxxx Xxxx By: /s/ Xxxxxxxx Xxxx
----------------------------- -------------------------------
Print Name: Xxxxxx Xxxx Print Name: Xxxxxxxx Xxxx
--------------------- ------------------------
Title: President Title: President
--------------------- ------------------------
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