PATENT AND TECHNOLOGY LICENSE AND TECHNOLOGY TRANSFER AGREEMENT
Exhibit
10.12
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This
Patent and Technology License and Technology Transfer Agreement (the
“Agreement”)
is
entered into as of October
13th,
2006 (the “Effective Date”) by and between IGT, a Nevada corporation with
principal offices at 0000 Xxxxxxxxx Xxxxx, Xxxx, Xxxxxx 00000 (“IGT”), and
PureDepth Inc., a Delaware corporation with principal offices at 000
Xxxxxxxxx Xxxxx,
Xxxxx
000,
Xxxxxxx
Xxxx, Xxxxxxxxxx, 00000 (together with its subsidiaries, PureDepth Limited
and
PureDepth Incorporated Limited, collectively “PureDepth”).
Background
PureDepth
and
its
affiliates are a
research and design business focused on developing new display technology.
PureDepth and
its
affiliates have developed
and continue
to
develop a
multi-layer display (MLD)
technology
with
promising commercial potential.
IGT
is a
leading manufacturer of gaming machines and other devices for use in the
wager-based gaming industry.
PureDepth
wishes to grant to IGT an exclusive license to incorporate its MLD Technology
into IGT products and to offer for sale, sell and/or distribute such IGT
products within the Field of Use under the terms and subject to the conditions
of this Agreement.
In
consideration of the mutual promises and covenants and conditions contained
herein, IGT and PureDepth agree as follows:
1. |
Definitions
|
Section
1.01 “Administrative
Machine” means a device developed now or in the future (i) which is designed for
use in casino administration of Gaming Machines and (ii) that would, absent
this
Agreement, infringe the Licensed Intellectual Property.
Section
1.02 “Affiliate”
means,
with respect to IGT and PureDepth, any other natural person or corporation,
partnership, joint venture, limited liability company or other business entity
that directly or indirectly controls, is controlled by, or is under common
control with, IGT or PureDepth, respectively. An entity or person shall be
regarded as in control of another entity if it owns or controls, directly
or
indirectly, at least fifty percent (50%) of the voting stock or other ownership
interest of the other entity. A joint venture entity in which IGT or an IGT
Affiliate owns at least 50% of the equity interest shall be deemed an
IGT
Affiliate.
Section
1.03 “Agreement” means
this agreement, including the
Exhibits
to this
Agreement.
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Section
1.04 The
“Copyrights” means any copyright held by PureDepth, whether registered or not,
in any written material, plans, designs, software, or other work relating
to the
development, assembly, sale, and distribution of Pure Depth’s MLD
Technology in the Field of Use.
Section
1.05 The
“Core
Patents” shall mean those PureDepth Patents listed in Exhibit B that claim
generic aspects of MLD technology, and are not limited by application or
by
features not directly related to the functioning of a display. The Core Patents
include at least US Patent No. [****] and its non-US counterparts.
Section
1.06 “Field
of
Use” means wager-based non-amusement gaming. Examples of technology within the
Field of Use include without limitation class 2 technology, class 3 technology,
and central determination technology.
Section
1.07 “Gaming
Machine” means a machine adapted to provide or assist in providing a fully or
substantially automated wagering game. This includes machines and other devices
capable of receiving xxxxxx and/or issuing awards to players for play of
games
of chance. A Gaming Machine will be associated with at least one wagering
station. Gaming Machines include, but are not limited to, stand-alone Gaming
Machines, networked Gaming Machines (wired and wireless), general-purpose
computers configured with software, including Internet applications, for
implementing the wagering game, and automated multi-player station based
table
games. Gaming Machines may be non-Mobile Gaming Machines or Mobile Gaming
Machines (e.g., handheld and/or wireless) used primarily for gambling but
not
including certain common mobile devices such as iPods, Gameboys, and, PSPs.
It
is understood that a general purpose personal computer or mobile phone, not
designed primarily for gambling, is not a Gaming Machine. Gaming Machines
include Internet capable general or special purpose machines used primarily
for
Internet gambling.
Section
1.08 “Improvements”
means
modifications to, improvements in, developments from or additions to the
Licensed Intellectual Property during the Term as set forth in Section
2.01.
Section
1.09 The
“Know-How” means, collectively, all know-how, show-how, technical information,
technical knowledge, unpatentable inventions, manufacturing procedures, methods,
specifications, bills of materials, processes, and formulas relating to
PureDepth’s MLD Technology.
Section
1.10 “Licensed
Intellectual Property” means the trade secrets, the Know-How, the Copyrights,
the PureDepth Patent Applications, and the PureDepth Patents. The Licensed
Intellectual Property is applied in the development, manufacture, assembly
and
sale of the MLD Technology as well as any designs developed by PureDepth,
whether or not registered or protected by copyright or patent, devised or
acquired by PureDepth and applied in the development, manufacture, assembly
and
sale of the MLD Technology. For the avoidance of doubt, the Licensed
Intellectual Property includes all Improvements.
Section
1.11 “Licensed
Products”
means
any product, including devices and machines developed now or in the future
utilizing aspects of the MLD Technology and Sold within the Field of Use,
that
would, absent this Agreement, infringe the Licensed Intellectual Property.
Licensed Products include Gaming Machines and Administrative Machines that
would
infringe the Licensed Intellectual Property.
Section
1.12 “MLD
Technology”
is
the
multi-layer display technology owned by PureDepth and protected by the Licensed
Intellectual Property.
Section
1.13 The
“PureDepth Patent Applications” means “Existing Patent Applications” as
identified in Exhibit A and any “Future Patent Applications” relating to MLD
Technology filed in the US or elsewhere during the term of this Agreement.
The
PureDepth Patent Applications include but are not limited to continuations,
divisionals, continued examinations, substitutes, and continuations-in-part
of
any PureDepth Patent Applications.
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Section
1.14 The
“PureDepth Patents” means issued patents covering MLD Technology owned or
controlled by PureDepth including “Existing Patents,” which are patents owned or
controlled by PureDepth on the Effective Date, including those listed in
Exhibit
B, as well as any renewals, reissues, substitutes and reexaminations thereon
and
any “Future Patents,” which are patents granted after the Effective Date upon
any PureDepth Patent Application in the US or elsewhere, and includes any
patents of which PureDepth is the permitted user of worldwide and which relate
to the MLD Technology.
Section
1.15 “Sale” or“Sell”
or
“Selling”
or
“Sold” means
the
sale, transfer, or other disposition of a Licensed Product by IGT, either
directly or through its sublicensees and/or Affiliates, to an ultimate customer.
Section
1.16 “Territory”
means worldwide except for Japan.
Section
1.17 “Wagering
Station” means a physical station associated with one or more gaming machines
where a player can place bets on a game of chance. To qualify as a wagering
station herein, the gaming machine associated with the wagering station must
include at least one display incorporating MLD Technology. Typically though
not
necessarily a wagering station includes facilities for not only placing bets
but
also initiating play of the game of chance.
2. |
Term
and Termination
|
Section
2.01 Term.
This
Agreement shall commence on the Effective Date and shall continue in full
force
and effect for an
initial term of [****]
years
(“Initial
Term”).
Section
2.02 Termination.
(a) Either
party may terminate this Agreement if
the
other party materially
breaches
this
Agreement
and
fails
to
cure such
breach
within sixty (60) days after receiving written notice thereof by the
non-breaching party, which notice shall specify the manner in which the
Agreement has been breached.
Thereafter, such non-breaching
party may,
at
its option and in addition to any other remedy that it might be entitled
to,
immediately terminate this
Agreement by notice to
the
breaching party in
writing, which notice
of
termination
will be effective upon receipt.
(b) In
the
event there is a final, non-appealable judgment that one
or
more of the
Licensed Products
have
infringed the intellectual property rights of a third party, and as a result,
IGT is enjoined
from
Selling
the
Licensed Products as contemplated in this Agreement, then IGT shall have
the
right to terminate this Agreement upon
written notice to PureDepth.
(c) This
Agreement may also be terminated pursuant to Section 9.02(f).
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Section
2.03 Effect
of Termination.
Upon
termination or expiration of this Agreement, except in the case of Section
2.2(b), IGT will have a period of ninety (90) days from the effective date
of
the termination or expiration in which to Sell any Licensed Products in its
inventory as of the effective date of the termination or expiration. Within
fifteen (15) days of the effective date of termination or expiration, IGT
will
provide a report listing all Licensed Products that are in IGT’s inventory by
product type and quantity. Upon termination or expiration of this Agreement,
IGT
will return, within ten (10) days, all PureDepth Know-How and Confidential
Information including the manufacturing package and the design package.
Termination or expiration of
this
Agreement,
for any
reason, will not
be
construed to release any party from any obligation accrued prior to the
effective date of such termination
or expiration.
In this
regard, the termination
of this
Agreement by either party for any reason shall not relieve any party of any
liability for a breach of this Agreement, any misrepresentation or failure
to
comply with any term
or
covenant hereunder or any other liability accruing prior to the date of
expiration or termination;
provided,
however,
that
neither party shall be deemed to be in default of any of its obligations
hereunder (other than any payment obligations) to the extent any delay in
its
performance is caused by or is the result of factors beyond its reasonable
control, including, without limitation, the factors identified in Section
9.15
(“Force
Majeure”).
Section
2.04 Option
for Renewal.
The
parties may elect to renew this Agreement for an additional term, subject
to
mutual agreement of the parties in writing, at least [****] prior to expiration
of the Initial Term, on [****].
3. |
License
Grant
|
Section
3.01 Grant.
PureDepth hereby grants to IGT an exclusive license under the Licensed
Intellectual Property throughout the Territory and in the Field of Use, to
make,
have made, use, market, distribute, Sell, offer to Sell, import, and export
to
any person and in any manner Gaming Machines.
PureDepth
hereby grants to IGT a non-exclusive license under the Licensed Intellectual
Property throughout the Territory and in the Field of Use to make, have made,
use, market, distribute, Sell, offer to Sell, import, and export to any person
and in any manner Administrative Machines.
Section
3.02 Right
to Sublicense.
PureDepth grants to IGT the exclusive right under the Licensed Intellectual
Property to sublicense any third party (including IGT Affiliates and contract
manufacturers) throughout the Territory and in the Field of Use, to make,
have
made, use, market, distribute, Sell, offer to Sell, import, and export to
any
person and in any manner Gaming Machines without first obtaining the consent
of
PureDepth.
PureDepth
also grants to IGT the non-exclusive right under the Licensed Intellectual
Property to sublicense any third party (including IGT Affiliates and contract
manufacturers) throughout the Territory and in the Field of Use to make,
have
made, use, market, distribute, Sell, offer to Sell, import, and export to
any
person and in any manner Administrative Machines without first obtaining
the
consent of PureDepth.
For
all
Sales by sublicensees (except as otherwise limited herein including as specified
in Sections 4.01 and 4.04), IGT will pay over to PureDepth royalties equal
to
amounts PureDepth would have received from IGT on equivalent Licensed Products
Sold by IGT as specified in Section 4.02. IGT
will
report the execution of sublicensees to PureDepth in writing within thirty
(30)
days of the execution of each sublicense and will identify the sublicensee
and
will provide a copy of the sublicense upon request by PureDepth.
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4. |
Royalties,
Payments and Reporting (Accounting and
Audit)
|
Section
4.01 - Prepaid
Royalty.
-
[****].
IGT
and
its sublicensees will Sell Licensed Products subject
to the
royalty schedule of Section 4.02
(“Royalty Schedule”); however IGT will not be obligated to pay royalties to
PureDepth thereunder until [****].
Thereafter,
IGT will pay PureDepth royalties on further Sales of Licensed Products according
to the schedule of Section 4.02.
Section
4.02 - Royalty
Schedule
For
[****], IGT will pay PureDepth a royalty of $[****].
Further,
IGT shall have no obligation to pay royalties for any sales of any Licensed
Product having one or more displays that IGT purchases from
PureDepth.
Section
4.03 - Payments
and Reporting.
(a)
After
[****], IGT will compute and pay royalties pursuant to the royalty schedule
of
Section 4.02 to PureDepth within thirty (30) days after the end of each quarter
of the calendar year -- the quarters ending on March 31st, June 30th, September
30th and December 31st.
(b)
Within thirty (30) days after each quarter (from January 1 to March 31, from
April 1 to June 30, from July 1 to September 30 and from October 1 to December
31) for as long as this Agreement remains in effect, IGT will furnish to
PureDepth a report in writing containing full particulars of the Sales of
Licensed Product during the quarter (including the numbers of Wagering Stations
per Gaming Machine).
(c)
IGT
will keep or cause to be kept, true and accurate books and records with respect
to Sales of Licensed Products (and all Wagering Stations) covered by this
Agreement in accordance with generally accepted accounting principles and
in a
manner consistent with the accounting methods employed by best business
practice.
(d)
PureDepth will have the right, at its own expense, to engage an independent,
certified public accounting firm to examine the relevant books and records
of
IGT (including those records received by IGT from its sublicensees and any
of
its Affiliates who have Sold the Licensed Products) at any reasonable time
during business hours after notifying IGT of its desire to do so in writing.
Except for the disclosure of financial information to PureDepth or except
as
otherwise required by law, regulation or legal process, such accounting firm
will be required to maintain the confidentiality of all financial or other
non-public information of IGT and any of its Affiliates who have Sold the
Licensed Products. The examination will be no more than once each year and
will
cover no more than the preceding three (3) anniversary years. Except in the
case
of an intentional failure to disclose or omission by IGT or its Affiliates
or
agents, no year may be audited more than once. The examination will be solely
for the purpose of determining the compliance by IGT of its reporting and
payment obligations under this Agreement. In the event that an examination
discloses an error by IGT (for whatever reason) of more than [****]% the
of
royalties paid or due to PureDepth for the period under audit, IGT will fully
reimburse PureDepth for all PureDepth's costs and expenses of the examination,
and will pay to PureDepth the amount of the royalties due to PureDepth within
thirty (30) days.
(e) Royalty
payments will be made subject to the required withholding of any government
with
jurisdiction. IGT
shall
maintain complete and accurate accounting records of such withholding and
shall
fully cooperate with PureDepth’s efforts to obtain credits of taxes paid or
withheld, where appropriate.
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(f)
Independent of any audit examination, PureDepth will credit to IGT the amount
of
any overpayment of royalties made by IGT in error which overpayment is
identified and explained in writing by IGT to PureDepth within six (6) months
of
the overpayment, subject to PureDepth's
confirmation of the overpayment
Section
4.04 - No
Royalty for Samples.
No
royalty will be owed or paid by IGT to PureDepth for any Licensed Product
supplied free of charge as an evaluation, sample or promotional unit, provided,
however, that net shipments of such units do not exceed
[****]% of
the
total
number of Licensed Products Sold by
IGT or
[****]
units,
whichever is less, in
any
given year.
5. |
Intellectual
Property
|
Section
5.01 Ownership
of Intellectual Property Rights.
Nothing
in this Agreement is intended to transfer the ownership of any intellectual
property owned by either party. The
parties acknowledge and agree as follows:
(a) PureDepth's
Ownership.
PureDepth shall, for all purposes, be considered the sole and exclusive owner
or
licensee empowered to grant IGT full rights under Section 3.01 of (i) the
PureDepth Existing Patents and (ii) the Existing Patent Applications. PureDepth
shall also be considered the sole and exclusive owner of (iii) all Future
Patent
Applications, if and to the extent the inventions covered in such Future
Patent
Applications are invented solely by PureDepth or result from work performed
under the sole direction of PureDepth.
(b) IGT's
Ownership.
IGT
shall, for all purposes, be considered the sole and exclusive owner of all
patent applications to the extent the inventions covered in such patent
applications are invented solely by IGT or result from work performed under
the
sole direction of IGT.
(c) [****]
Ownership.
[****].
Each of IGT and PureDepth may exploit any joint inventions and any patent
applications filed thereon and any patent issuing thereon in any manner and
without any accounting to the other, provided however that (i) PureDepth
shall
not license, assign, or otherwise convey any of its interest in any such
patent
application and any patents issuing therefrom to any party for practice,
use, or
commercialization in the Field of Use without the express written permission
of
IGT in its sole discretion, and (ii) IGT shall not license, assign, or otherwise
convey any of its interest in any such patent application and any patents
issuing therefrom to any party for practice, use, or commercialization outside
the Field of Use without the express written permission of PureDepth in its
sole
discretion. The parties agree that, both during and after the term of this
Agreement, they each shall take such action and execute and deliver such
documents as are reasonably requested by the other party to evidence and
confirm
the foregoing provisions regarding each party's ownership rights and to
cooperate reasonably prosecution of any patent applications with respect
to any
Joint Future Patent Applications. IGT
shall
be responsible for prosecution of such patent applications subject to
PureDepth’s prior written approval (i) of the prosecuting attorneys, and (ii)
the patent application prepared for filing.
Section
5.02 Third
Party Infringement.
IGT
shall promptly inform
PureDepth of any infringement of any Licensed
Intellectual Property by a third party. During the term of this Agreement,
PureDepth and IGT each shall have the right to institute an action for
infringement of
the
Licensed Intellectual Property against
such third party subject to the following:
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(i) PureDepth
may institute suit, and, at its option, join IGT as a plaintiff. If PureDepth
decides to institute suit, then it shall notify IGT in writing. If IGT does
not
notify PureDepth in writing within fifteen (15) days after the date of the
notice from PureDepth, that it will join in enforcing the Licensed Intellectual
Property pursuant to the provisions hereof, PureDepth shall bear the entire
cost
of such litigation and shall be entitled to retain the entire amount of any
recovery or settlement;
(ii) If
PureDepth opts not to institute suit as described in (i), IGT and PureDepth
may
agree to institute suit jointly, and in such case, the suit shall be brought
in
both their names, the out-of-pocket costs thereof shall be borne equally,
and
any recovery or settlement shall be shared equally. IGT and PureDepth shall
agree to the manner in which they shall exercise control over such action.
PureDepth may, if it so desires, also be represented by separate counsel
of its
own selection, the fees for which counsel shall be paid by
PureDepth;
(iii) If
PureDepth notifies IGT that it has decided not to institute a suit in accordance
with (i) and in the absence of agreement to institute a suit jointly, as
provided in (ii) above, IGT may institute suit and, at its option, join
PureDepth as a plaintiff. IGT shall bear the entire cost of such litigation
and
shall be entitled to retain the entire amount of any recovery or settlement;
(iv) Should
either PureDepth or IGT commence a suit under the provisions of this Section
5.02, and thereafter elect to abandon the same, such party shall give timely
notice to the other party who may, if it so desires, continue prosecution
of
such suit, provided, however, that the sharing of expenses and any recovery
in
such suit shall be as agreed upon between PureDepth and IGT;
(v) Notwithstanding
the terms of (ii), (iii) and (iv) above, PureDepth reserves the right to
control
an action insofar as a claim of invalidity is made by a third party as to
the
PureDepth Patents.
Section
5.03 Intellectual
Property Review by IGT and Maintenance Rights.
PureDepth shall have the right to prosecute and maintain the Licensed
Intellectual Property, including but not limited to the PureDepth Patent
Applications and PureDepth Patents. PureDepth shall provide IGT with copies
of
proposed responses to any substantive action of any intellectual property
office
at least 30 days prior to the unextended filing deadlines for such responses,
if
applicable, and IGT shall have the right to make reasonable changes to such
responses. PureDepth shall also provide IGT with copies of any proposed
PureDepth Patent Applications prior to filing and IGT shall have the right
to
make reasonable changes to such PureDepth Patent Applications. For
non-provisional Patent Applications having a bar date, past which US or non-US
patent rights will be lost if a Patent Application is not filed, PureDepth
will
provide copies of such Patent Applications to IGT at least 30 days prior
to any
such bar date. [****]. PureDepth shall bear the expense of such filing,
prosecution and maintenance, except [****] in which case IGT shall be solely
responsible for expenses incurred in prosecution and maintenance.
Section
5.04. Invalidity
of Patents.
In the
event all Core Patents of PureDepth are invalidated on a final, non-appealable
judgment, this Agreement shall be terminated and IGT shall have no further
royalty obligation as of the date of such judgment. If, however, one or more
(but not all) PureDepth Core Patents are invalidated, PureDepth and IGT shall
confer in good faith to equitably adjust, if appropriate, the royalty schedule
set forth in Section 4.02. If the parties cannot reach an agreement on the
royalty schedule
within sixty (60) days of the commencement of such discussion, then the subject
matter shall be submitted to arbitration as set forth under
9.06(b).
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Section
5.05 Marking.
IGT
agrees to xxxx the Licensed Products (or their labels) with the numbers of
the
applicable PureDepth Patents.
Section
5.06 PureDepth
License to IGT Improvement Patents.
PureDepth shall have a fully paid up non-exclusive worldwide license to make,
have made, use, market, distribute, Sell, offer to Sell, import, and export
products under all patents and patent applications owned by IGT (as specified
in
Section 5.01(b)) claiming MLD Technology, which are filed after the Effective
Date and do not claim priority to any patent applications filed prior to
the
Effective Date. [****]. Nothing in this section 5.06 grants PureDepth a license
to exploit any other IGT patent.
6. |
Technology
Transfer
|
Section
6.01 During
the term of the Agreement, PureDepth shall, in the manner set forth in Exhibit
C, disclose and make available to IGT all information available to PureDepth
regarding the MLD Technology and related technology necessary to implement
the
MLD Technology in the Licensed Products. In this regard, PureDepth shall
provide
training to IGT personnel. Such training shall commence and proceed according
to
the schedule provided in Exhibit C.
Section
6.02. As
set
forth in Exhibit C and in order to facilitate face-to-face time for such
training, IGT personnel will be sent to PureDepth facilities in Redwood City,
California, or other suitable location, and that in further pursuance of
such
training PureDepth personnel will be sent to IGT facilities in Reno, Nevada.
IGT
shall provide reasonable meals and lodging for all times that any PureDepth
personnel are visiting IGT facilities, and IGT will assume responsibility
for
the meals and lodging for all times that any IGT personnel are visiting
PureDepth facilities. All travel costs for travel by IGT and PureDepth personnel
shall be borne by IGT. PureDepth shall provide office space and desks for
IGT
representatives, as well as phone/fax and Internet access during the periods
of
Technology Transfer. Free use of PureDepth’s facilities and materials will be
provided during this time by PureDepth. In like manner, IGT will provide
free
use of its facilities to visiting PureDepth personnel during periods of
Technology Transfer.
Section
6.03. Maintenance.
PureDepth shall provide continuous ongoing maintenance to IGT for all initial
and later developed aspects of MLD Technology, as may be reasonable. Such
maintenance shall include all necessary error detection and correction, and
troubleshooting. Support shall mean assistance and training provided by
PureDepth in familiarizing IGT R&D personnel with the items and information
as delivered, and shall include reasonable levels of technical support in
the
use of all supplied items, and responses to IGT inquiries and reports of
problems. In this regard, PureDepth further agrees to provide IGT with fixes
and
corrections that may be developed by PureDepth for use with the MLD Technology.
Any such fixes, including release notes and any other pertinent documentation,
shall be provided to IGT either within thirty (30) days of their completion
internally at PureDepth or prior to installation in the field anywhere in
the
world, whichever shall come first. This provision shall not apply to field
trials or prototypes under the full control of PureDepth. PureDepth shall
provide to IGT improvements and/or upgrades of the items containing new features
and/or functions, such as may be developed by PureDepth from
time-to-time.
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Section
6.04 Solicitation. IGT
and
PureDepth hereby agree that neither party shall directly
hire as
its own employee(s) any current or future employees of the other party,
including all technical personnel, during
the term of this Agreement and for
a
period of at least five (5)
years
from the termination or expiration of this Agreement,
except
as may be mutually agreed upon between the parties;
except
where such prospective employee responds to general advertisements. The
provisions contained in this Section 6.04 shall
apply mutatis
mutandis
to
Affiliates.
7. |
Representations
and Warranties
|
Section
7.01 Representations
and Warranties of IGT.
IGT
represents and warrants to PureDepth as of the Effective
Date that:
(a) Corporate
Organization, Good Standing, Etc. IGT
is a
corporation duly incorporated, validly existing and good standing under the
laws
of the State of Nevada, and has all corporate power and authority to own,
lease
and operate its properties and to carry on its businesses as currently conducted
and as proposed to be conducted. IGT
has
all necessary corporate power and authority to enter into this Agreement
and to
perform its obligations hereunder.
(b) Due
Authorization, Etc.
This
Agreement has been duly authorized, executed and delivered by IGT and
constitutes the legal, valid and binding obligation of IGT, enforceable against
it in accordance with its terms, subject to any applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors'
rights generally, and general principles of equity.
(c) No
Conflict.
The
execution and delivery by IGT of this Agreement and the consummation of the
transactions contemplated hereby do not violate or conflict with the Articles
of
Incorporation or Bylaws of IGT, any material contract, agreement or decree,
order or award of any court, governmental body or arbitrator by which IGT
is
bound or any law, rule or regulation applicable to IGT.
(d) Consents
and Approvals.
No
consent, approval or authorization of, or exemption by, or filing with, any
governmental or regulatory authority or any non-governmental person is required
in connection with the execution, delivery or performance by IGT of this
Agreement or the consummation of the transactions contemplated hereby.
Section
7.02 Representations
and Warranties of PureDepth.
PureDepth represents and warrants to IGT as of the Effective
Date that:
(a) Due
Organization, Good Standing, Etc.
PureDepth is a corporation duly incorporated, validly existing and good standing
under the laws of the State of Delaware,
and has
all corporate power and authority to own, lease and operate its properties
and
to carry on its businesses as currently conducted and as proposed to be
conducted. PureDepth has all necessary corporate
power
and
authority
to enter
into this Agreement, to grant the rights to be granted to IGT hereunder and
to
perform its obligations hereunder.
(b) Due
Authorization, Etc. This
Agreement has been duly authorized, executed and delivered by PureDepth
and constitutes
the legal, valid and binding obligation of PureDepth,
enforceable against it in accordance with its terms, subject to any applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’
rights
generally, and general principles of equity.
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(c) No
Conflict.
The
execution and delivery by PureDepth of this Agreement and the consummation
of
the transactions contemplated hereby do not violate or conflict with the
Articles of Incorporation or Bylaws of PureDepth, any material contract,
agreement or decree, order or award of any court, governmental body or
arbitrator by which PureDepth is bound or any law, rule or regulation applicable
to PureDepth. Without limiting the generality of the foregoing, PureDepth
has
not entered into, and will not enter into, any agreement granting rights
to any
person which will conflict with or be a
breach
of PureDepth’s obligations hereunder.
Further, PureDepth is not a party to any other agreements that would require
any
third-party consents, waivers or authorizations needed for PureDepth to grant
the items and rights provided in this Agreement.
(d) Ownership
of Licensed Technology.
PureDepth is the owner
of
or licensee of PureDepth Patents and
has
full power and authority to grant the rights and licenses granted to IGT.
Further, the PureDepth
Patents are not,
as
of the Effective Date, subject to any lien or other encumbrance that would
affect the ability of IGT to exercise
the rights granted to IGT by PureDepth herein.
(e) Validity
of Patents.
All of
the PureDepth Patents are currently in compliance with all formal legal
requirements (including payment of filing, examination and maintenance fees
and
proofs of working or use), and, to the best of PureDepth’s knowledge, are valid
and enforceable.
(f) No
Interference.
[****]
and PureDepth is currently
unaware
of any potentially interfering patent or patent application of any person
with
respect to the PureDepth Patents.
(g) No
Infringement.
[****] PureDepth is currently unaware
of any patent or other proprietary rights of any third party that would be
infringed by the use of the MLD Technology.
(h) Full
Rights to Practice MLD Technology.
By this
Agreement, PureDepth has granted IGT a License under all intellectual property
it owns, controls or has licensed as necessary to practice the make use of
the
Licensed Intellectual Property and Gaming Machines and Administrative Machines
as set forth in Section 3.01.
8. |
Indemnification
|
Section
8.01 Indemnification
with regard to infringement claims.
PureDepth will assume the defense of any suit brought against IGT or [****],
for
[****] insofar as such suit is based upon a claim that the [****] is
attributable to IGT’s application without substantial modification of such MLD
Technology supplied under this Agreement. In any such suit, PureDepth will
indemnify IGT against any money damages or costs awarded in such suit in
respect
to such a claim.
Section
8.02 Indemnification
Procedures for Third-Party Claims.
The
obligations of PureDepth stated in Section 8.01 apply only if (a) IGT shall
inform PureDepth in writing within fifteen (15) days of receiving any claim
within the scope of Section 8.01 and (b) IGT assists PureDepth in all necessary
respects in conduct of the suit. PureDepth
may assume control of the defense of any such claim; provided, however, that
the
IGT may, at its own cost and expense, participate through its attorneys or
otherwise, in such investigation, trial and defense of such claim and any
appeal
arising therefrom. PureDepth shall not settle any such claim without IGT’s prior
written consent (which consent shall not be unreasonably withheld or delayed),
unless such settlement would not subject IGT to any liability (e.g., the
settlement is solely for monetary damages for which IGT is fully indemnified
under this Agreement). If PureDepth does not assume full control over the
defense of a claim pursuant to this Section 8.02, then PureDepth may participate
in such investigation, defense or trial, solely at its cost and expense,
and IGT
shall have the right to defend or settle such claim in such manner as IGT
deems
appropriate, subject to the consent of PureDepth which shall not be unreasonably
withheld or delayed, solely at the cost and expense of PureDepth.
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CONFIDENTIAL
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Section
8.03 PureDepth’s
Total Liability. PureDepth’s total liability to incur out-of-pocket costs in the
defense of any suit or suits and to pay damages awarded in any suit or suits
shall be limited to the amount theretofore paid to PureDepth by IGT under
this
Agreement, but not exceeding $[****].
9. |
Miscellaneous
Provisions
|
Section
9.01 Confidentiality.
Each
party ( as a “Disclosing Party”) is willing to disclose to the other party ( as
a “Receiving
Party”)
such
party’s Confidential Information (as defined herein) pursuant to the
following:
(a)
“Confidential Information” means IGT’s confidential and proprietary information,
including trade secrets related to the use of transparent displays; and
PureDepth’s confidential and proprietary information, including trade secrets
related to multi-layer displays and manufacturing methods for multi-layer
display monitors. Confidential Information may further include but is not
limited to the following: contractual provisions, discoveries, ideas, concepts,
know-how, techniques, designs, specifications, drawings, blueprints, diagrams,
flowcharts, data, costs, prices, customer lists, marketing plans, goals,
sales
figures, revenues and profits and shall expressly include the nature and
existence of this Agreement as well as any information directly derived from
the
Confidential Information.
(b)
Each
party, as the Disclosing Party may deliver written disclosures of Confidential
Information to the other party as the Receiving Party. All such disclosures
are
agreed to fall within the terms of this Agreement and shall be marked
“Confidential”, “Proprietary”, or such other similar language. Disclosures of
Confidential Information delivered absent such marking shall be deemed
Confidential Information if delivered under circumstances that reasonably
suggest the confidential nature of the information.
(c)
Each
party, as the Disclosing Party, may orally communicate Confidential Information
to the other party as the Receiving Party. In the event such oral communication
of Confidential Information is made, the Disclosing Party shall draft a document
for the purpose of reducing such Confidential Information to writing and
identifying the date, time and individual representatives privy to the
disclosure. The document shall be marked “Confidential”, “Proprietary”, or such
other similar language, and delivered to the Receiving Party within ten (10)
business days of the disclosure. Disclosures of Confidential Information
not
reduced to writing shall be deemed Confidential Information if delivered
under
circumstances that reasonably suggest the confidential nature of the
infomation.
(d)
The
parties shall provide the respective standard of care used by each party
in the
protection of their own Confidential Information (but in no event less than
a
reasonable standard of care), and not disclose to any third party any
Confidential Information. Confidential Information shall not include the
following:
(i) information
which, at the time of disclosure, is in the public domain or which, after
disclosure, becomes part of the public domain by publication or otherwise
through no action or fault of the Receiving Party; or
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(ii) information
that the Receiving Party can show (by means of written record) was in its
possession or known to the party prior to the time of disclosure and was
not
acquired, directly or indirectly, from the Disclosing Party, or
(iii) information
that was received by the Receiving Party from a third party having no legal
prohibition preventing the third party from disclosing the information;
or
(iv) information
that is independently developed by the Receiving Party without any knowledge
or
use of the Confidential Information communicated under this
Agreement.
(e)
Confidential Information may be disclosed by the Receiving Party to a third
party if the disclosure is in response to a valid subpoena or order by a
court
of competent jurisdiction or by a governmental body, provided that the Receiving
Party so required to disclose the Confidential Information advises the
Disclosing Party promptly upon becoming aware that the Confidential Information
is subject to disclosure, does nothing to prevent the Disclosing Party from
intervening in any proceeding to protect its rights under this Agreement,
uses
commercially reasonable efforts to resist disclosure, and if unsuccessful,
to
obtain an appropriate protective order. Disclosures made under these
circumstances shall be made only to the named authority requiring the
disclosure.
(f)
The
parties shall not, without the written permission of the other, use the
Confidential Information of the other for any reason other than for the
performance of this Agreement. Should any portion of the Confidential
Information reach the public domain, the Parties shall not add to the public
domain through their knowledge of the Confidential Information and shall
continue to maintain that portion of the Confidential Information not yet
in the
public domain as confidential. The Receiving Party shall not reverse engineer
or
disassemble any Confidential Information nor any products related to the
Confidential Information of the Disclosing Party.
(g)
The
parties reserve unto themselves all rights under their respective Confidential
Information as their absolute property and under patent, trademark, trade
secret
and copyright laws relating to the Confidential Information they own, including
the rights to file patent and trademark applications, obtain patents and
trademarks, and file and obtain copyright registrations relating to their
Confidential Information. Both parties agree and understand that each party
shall have all the rights and remedies available to it under patent, trademark,
trade secret and copyright law.
(h)
It is
understood by the parties that this Agreement does not constitute a sale,
license or any other grant to make, use or sell the Confidential Information,
other than as specified herein.
(i)
The
parties shall limit disclosure of Confidential Information to employees and
independent contractors in their organization on a need-to-know basis, only,
in
order to accomplish the purposes of this Agreement. The Confidential Information
shall only be provided to employees who are informed of the obligations of
confidentiality hereunder and who are bound to protect the confidentiality
of
such Confidential information. Other than employees meeting the above
requirements, neither the existence of this Agreement nor the nature of the
discussions between the parties shall be disclosed to any third party.
(j)
The
parties shall return to the other within a reasonable period of time all
materials containing Confidential information and any other materials provided
under this Agreement, including but not limited to written information, copies,
reports, papers, surveys, letters, lists, drawings, computer printouts,
blueprints, manuals, software and firmware, that were delivered to the party,
upon request by the other or upon expiration or termination of this Agreement.
In the event materials to be returned to the Disclosing Party include
confidential information of the Receiving Party, the Receiving Party may
optionally elect to have all such materials destroyed and to certify, in
writing
to the Disclosing Party, that all such materials were destroyed.
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(k)
Receiving Party’s obligation under this Section with respect to any particular
Confidential Information, shall survive the expiration or termination of
this
Agreement and violations of such shall remain actionable.
(l)
Both
parties acknowledge that due to the unique nature of the Confidential
Information, there can be no adequate remedy at law for any breach of its
obligations hereunder, that any such breach may allow the Receiving Party
or
third parties to unfairly compete with the Disclosing Party resulting in
irreparable harm to the Disclosing Party, and therefore, that upon any breach
or
any threat thereof, the Disclosing Party shall be entitled to seek and obtain
injunctive relief in addition to whatever remedies it might have at law or
equity.
Section
9.02 Regulatory
Compliance.
[****]
Section
9.03. Control
of Personnel.
PureDepth and IGT shall at all times retain the administrative supervision
of
their respective personnel during visits to each other’s facilities. PureDepth
and IGT’s personnel shall, while on location of the other party or the other
party’s Affiliates, comply with the other party’s or the other party’s
Affiliates’ rules and regulations with regard to safety and security. PureDepth
and IGT agree to indemnify each other from any claims or demands, including
the
costs, expenses and reasonable attorney’s fees incurred on account thereof; that
may be made by anyone for personal injury or property damage resulting from
the
acts or omissions of the other’s personnel.
Section
9.04. Successors
and Assigns; Assignment.
(a) Neither
party may assign this Agreement
without
the prior written consent of the
other
party, except to an Affiliate or in the case of a merger, acquisition or
sale of
assets.
(b) If
PureDepth decides to sell or otherwise transfer any of the Licensed
Intellectual, PureDepth shall provide a thirty (30) day advance written notice
to IGT of its intended disposition and PureDepth shall give IGT [****]. In
its
agreement documenting such disposition, PureDepth shall specifically cause
the
purchaser or transferee, as the case may be, to assume the licenses granted
to
IGT hereunder.
(c) [****],
PureDepth and IGT shall confer in good faith to equitably adjust, if
appropriate, the royalty schedule set forth in Section 4.02. If the parties
cannot reach an agreement on a new royalty schedule within sixty (60) days
of
the commencement of such discussion, then the subject matter shall be submitted
to arbitration as set forth under 9.06(b).
Section
9.05. Relationship
of Parties.
(a) It
is
understood that the parties hereto are independent entities engaged in the
conduct of their own respective endeavors. No party is to be considered the
agent or employee of the other for any purpose. In all matters relating to
this
Agreement, each party hereto will be solely responsible for the acts of its
employees and agents, and employees or agents of one party shall not be
considered employees or agents of the other party. No party will have any
right,
power or authority to create any obligation, express or implied, on behalf
of
any other party nor shall either party act or represent or hold itself out
as
having authority to act as an agent or partner of the other party, or in
any way
bind or commit the other party to any obligations. Nothing in this Agreement
is
intended to create or constitute a joint venture, partnership, agency, trust
or
other association of any kind between the parties or persons referred to
herein.
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(b) IGT
shall
be responsible for all acts of any Affiliate
of IGT
in connection with this Agreement, and any breach of this Agreement by any
IGT
entity shall be deemed a breach by IGT. PureDepth shall be responsible for
all
acts of any Affiliate
of
PureDepth in connection with this Agreement, and any breach of this Agreement
by
any PureDepth entity shall be deemed a breach by PureDepth.
(c) Except
as
set forth herein, this Agreement will not confer any rights or remedies on
any
party, person or third party other than IGT, PureDepth, and their respective
successors and permitted assigns.
Section
9.06. Governing
Law; Dispute Resolution; Jurisdiction.
(a) This
Agreement shall be deemed to be executed and performed in the United States
of
America, State of California, County of San Francisco, and shall be construed
in
accordance with the laws of the State of California as to all matters,
including, but not limited to, matters of validity, construction, effect
and
performance, without regard to California law pertaining to conflicts or
choice
of law.
(b) Any
controversy or claim arising out of or relating to this Agreement, or the
breach
thereof, shall first be addressed by the signatories to this Agreement or
appropriate equivalents thereof from each party upon the request of any party.
If such persons cannot settle the matter to the mutual satisfaction of all
parties within sixty (60) days of such request, then any party may first
submit
the dispute to arbitration in accordance with the Rules of the American
Arbitration Association in the City of San Francisco, California. Judgment
upon
the award rendered by the Arbitrators may be entered in any Court having
jurisdiction thereof. Three qualified arbitrators shall be appointed in
accordance with the Rules of the American Arbitration Association and this
Agreement. Such qualified arbitrators shall be members of the Nevada or
California Bar and shall have experience in intellectual property law
matters.
Section
9.07. Amendment
and Waiver.
No
amendment or waiver of any term or condition of this Agreement will be valid
or
binding on a party unless the same has been mutually assented to in writing
by
all parties. The failure of a party to enforce at any time any of the provisions
of this Agreement, or the failure to require at any time performance by the
other party of any of the provisions of this Agreement, or the failure of
a
party to exercise any of its rights or remedies under this Agreement, will
in no
way be construed to be a present or future waiver of such provisions, rights,
or
remedies, nor in any way affect the ability of a party to enforce each and
every
provision thereafter. Rather, the same will be and remain in full force and
effect.
Section
9.08. Severability.
If
any
provision of this Agreement or
portion thereof, or the application thereof to any person or circumstances
or in
any country or countries, shall be held to any extent invalid
or unenforceable,
the
remainder of this Agreement (or of such provision) and the application thereof
to other persons or circumstances or in other countries appropriate and
applicable shall not be affected thereby.
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Section
9.09. Notices.
(a) All
notices pertaining to or required by this Agreement shall be in writing and
shall be signed by an authorized representative. Notices shall be sent by
facsimile (confirmed receipt) or delivered by hand or sent by certified mail,
return receipt requested, with postage prepaid, or sent by overnight courier
to
the addresses set forth as follows:
If
to
IGT, such notices shall be delivered to:
Xxxxx
Xxxxxxx
Xx.
V.P.,
IGT-Labs
IGT
0000
Xxxxxxxxx Xxxxx
Xxxx,
XX
00000
with
copies to:
Xxxxx
Xxxxx
Assistant
General Counsel
IGT
0000
Xxxxxxxxx Xxxxx
Xxxx,
XX
00000
If
to
PureDepth, such notices shall be delivered to:
__________________________
CFO
PureDepth,
Inc.
000
Xxxxxxxxx Xxxxx, Xxxxx 000
Xxxxxxx
Xxxx, Xxxxxxxxxx, 00000
with
copies to:
Xxxxx
Snowman
Attorney
at Law
DLA
Xxxxx
Xxxxxxx Xxxx Xxxx US LLP
000
Xxxxxxxx Xxxxxx, Xxxxx 000
Xxx
Xxxxxxxxx, XX 00000-0000
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(b) Any
party
may change its official notice address or addresses by notice in writing
given
to every other party.
Section
9.10. Construction.
The
parties have each materially and fully participated in the negotiation and
drafting of this Agreement and each has had this Agreement reviewed by
respective counsel. Accordingly, this Agreement shall not be strictly construed
or interpreted against any party.
Section
9.11. Counterparts.
This
Agreement may be executed in counterparts, each of which shall be deemed
an
original instrument and all of which together shall constitute one and the
same
instrument.
Section
9.12. Rights
and Remedies.
In the
event of any breach of or default under this Agreement by either
party may
suffer irreparable harm and have no adequate remedy at law. In the event
of any
such breach or default, or any threat of such breach or default, either
party will
be
entitled to injunctive relief, specific performance and other equitable relief.
Further, in any legal action or other proceeding in connection with this
Agreement (e.g., to recover damages or other relief), either
party will
be
entitled to recover, in addition to any other relief to which it may be
entitled, its reasonable attorneys’
fees and
other costs incurred in that action or proceeding. The rights and remedies
of
either
party under
this Section
9.12 are
in
addition to, and not in lieu of, any other right or remedy afforded to
either
party under
any
other provision of this Agreement, by law or otherwise.
Section
9.13. Force
Majeure.
Neither
party will be responsible to the other for delay or failure in performance
of
any of the obligations imposed by this Agreement, provided that, such failure
will be occasioned by fire, flood, explosion, lightning, windstorm, earthquake,
subsidence of soil, failure of machinery or equipment or supply of materials,
discontinuity in the supply of power, court order or governmental interference,
civil commotion, riot, act of terrorism, war, strikes, labor disturbances,
transportation difficulties, labor shortage, natural genetic variations of
any
living matter or by any cause of like or unlike nature beyond the reasonable
control and without the fault or negligence of such parties.
Section
9.14. Survival.
The
provisions of Sections 4 (“Royalties, Payments and Reporting (Accounting and
Audit)”), including PureDepth’s right to conduct the final audit as specified in
Section 4.03(d) within one (1) year of termination of this Agreement, and
2.03
(“Effect of Termination”) shall survive any termination of this
Agreement.
Section 9.15. Entire
Agreement.
This
Agreement constitutes the entire agreement between the parties pertaining
to the
subject matter contained herein and supersedes all prior and contemporaneous
agreements, representations, and understandings of the parties, both oral
and
written. This Agreement may not be amended, except by writing signed by the
party against whom such amendment is sought to be enforced.
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This
Agreement shall be effective as of October 13th, 2006.
IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their
duly authorized officers thereof or authorized representatives.
IGT,
Inc.
|
|
By:___/s/___________________________
|
By:__/s/___________________________
|
Name:
Xxxxxxx X. Xxxxx
|
Name:
Xxxx Xxxxxxxxxxxx
|
Title:
President, Gaming Division
|
Title:
CEO
|
Date:_____________________________
|
Date:_____________________________
|
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COPY
EXHIBIT
A
[****]
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COPY
EXHIBIT
B
EXISTING
PUREDEPTH PATENTS
PureDepth
File Ref
|
Title
|
Publication/Grant
Number
|
Application
Number
|
Country
|
P001AU
|
A
multi layer display device and method for displaying images on
such a
device
|
|
2003213467
(previously 82482/98)
|
Xxxxxxxxx
|
X000XX
|
A
multi layer display device and method for displaying images on
such a
device
|
2,320,000
|
0000000
|
Canada
|
P001IL
|
A
multi layer display device and method for displaying images on
such a
device
|
|
000000
|
Xxxxxx
|
P001JP
|
A
multi layer display device and method for displaying images on
such a
device
|
0000000
|
0000000
|
Xxxxx
|
P001MX
|
A
multi layer display device and method for displaying images on
such a
device
|
234895
|
7616
|
Mexico
|
P001NZ
|
A
multi layer display device and method for displaying images on
such a
device
|
505800
|
505800
|
New
Zealand
|
P001SG
|
A
multi layer display device and method for displaying images on
such a
device
|
74918
|
2000
00000-0
|
Xxxxxxxxx
|
P001US
|
A
multi layer display device and method for displaying images on
such a
device
|
6,906,762
|
09/622535
|
USA
|
P002AU
|
Control
of Depth Movement for Visual Display with Layered Screen
|
769120
|
2002338626
|
Australia
|
P002EP
|
Control
of Depth Movement for Visual Display with Layered Screen
|
1212745
|
00955194.6
|
Europe
|
P002NZ
|
Control
of Depth Movement for Visual Display with Layered Screen
|
518200
|
518200
|
New
Zealand
|
P003AU
|
Display
method for Multiple Layered Screens
|
769103
|
67427/00
|
Australia
|
P003NZ
|
Display
method for Multiple Layered Screens
|
518199
|
518199
|
New
Zealand
|
P004AU
|
Interactive
three dimensional display with layered screens
|
766049
|
63265/00
|
Australia
|
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P004NZ
|
Interactive
three dimensional display with layered screens
|
516965
|
516965
|
New
Zealand
|
P005CN
|
Altering
surface of a display from Matt to Optically smooth.
|
ZL
01820567.4
|
01820567.4
|
China
|
P005NZ
|
Altering
surface of a display from Matt to Optically smooth.
|
508258
|
508258
|
New
Zealand
|
P005SG
|
Altering
surface of a display from Matt to Optically smooth.
|
200303020-2
|
200303020-2
|
Singapore
|
P005TW
|
Altering
surface of a display from Matt to Optically smooth.
|
NI-169308
|
89126584
|
Taiwan
|
P006AU
|
Improved
Display
|
740574
|
25542/99
|
Xxxxxxxxx
|
X000XX
|
Improved
Display
|
|
505801
|
New
Zealand
|
P006SG
|
Improved
Display
|
74917
|
2000
00000-0
|
Xxxxxxxxx
|
P009NZ
|
Dual
Layer stereoscopic liquid crystal display
|
517712
|
517712
|
New
Zealand
|
P010NZ
|
Enhanced
viewing experience of a display through localised dynamic control
of
ground lighting level
|
|
517713
|
New
Zealand
|
P012AU
|
Data
display for multiple layered screens
|
|
769107
|
Australia
|
P012NZ
|
Data
display for multiple layered screens
|
|
518198
|
New
Zealand
|
P013NZ
|
Multi
View Display
|
|
521505
|
New
Zealand
|
P014NZ
|
Backlighting
System for Display Screen
|
|
526028
|
New
Zealand
|
P014US
|
Backlighting
System for Xxxxxxx Xxxxxx
|
0000000
|
XXX
|
|
P015US
|
Three
Dimensional Optical Viewing System
|
|
5086354
|
USA
|
P016US
|
Three
Dimensional Optical Viewing System
|
|
5589980
|
USA
|
P017US
|
Optical
Viewing system for Asynchronous Overlaid Images
|
|
5956180
|
USA
|
P018NZ
|
Depth
Fused Display
|
|
515395
|
New
Zealand
|
P019NZ
|
Improvement
to Instrumentation
|
514119
|
514119
|
New
Zealand
|
P019NZA
|
Improvement
to Instrumentation
|
|
527910
|
New
Zealand
|
P020NZ
|
Layered
Assignment Interface
|
|
525956
|
New
Zealand
|
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P020NZA
|
Layered
Assignment Interface
|
|
541868
|
New
Zealand
|
P022NZ
|
Optical
Retarder
|
|
511255
|
New
Zealand
|
P023NZ
|
Visual
Display Unit Illumination
|
514500
|
514500
|
New
Zealand
|
P023NZA
|
Visual
Display Unit Illumination
|
532447
|
532447
|
New
Zealand
|
P024NZ
|
Information
Display
|
|
511444
|
Xxx
Xxxxxxx
|
X000XX
|
Information
Display
|
|
200306381-5
|
Singapore
|
P026NZ
|
Visual
Display System
|
|
511120
|
New
Zealand
|
21
CONFIDENTIAL
TREATMENT REQUESTED - REDACTED
COPY
EXHIBIT
C
TECHNOLOGY
TRANSFER
This
Exhibit outlines an Agenda for Technology Transfer and Instruction. Any other
Agenda may be substituted upon mutual agreement between IGT and PureDepth,
with
PureDepth to provide personnel necessary for an effective transfer.
Objectives
of Technology Transfer: IGT desires to learn [****]. In particular, IGT desires
to learn [****].
Technology
Transfer and Instruction includes transfer of any PureDepth manuals and data
pertinent to the display technology, including review and copying of all
PureDepth technical and manufacturing specifications for producing MLD
Technology displays for incorporating in Licensed Products. It is contemplated
that the Technology Transfer will include [****].
Transfer
includes:
Promptly
following the Effective Date, and in any event no more than fifteen (15)
business days thereafter, PureDepth will deliver to IGT the current manuals
and
data in existence in the form of documents, drawings, designs, samples or
other
material, in electronic form when available. Also, on mutually agreeable
dates
during the month of December, 2006 PureDepth shall provide technology training
pursuant to the following:
Instruction
and Transfer:
1.
|
Initial
Transfer:
|
[****]:
up to
[****] IGT representatives
[****].
Review and Update of PureDepth display technology
[****].
Facilities tour and demonstrations: includes [****]
[****].
Instruction to up to [****] IGT technical representatives: includes
[****]
[****].
Continued
[****].
Continued and review of results of IGT instruction under PureDepth
supervision
[****].
up to
[****] IGT representatives:
Continued
instruction and evaluation as needed.
[****].
up to
[****] IGT representatives for [***] each, if in PureDepth's reasonable
technical judgment
that
such
extension is necessary in order for IGT representatives to [****] without
the
assistance of PureDepth representatives.
It
is
understood that [****] as used herein refers to [****].
22
CONFIDENTIAL
TREATMENT REQUESTED - REDACTED COPY
2.
Second Instruction & Transfer:
[****]
after conclusion of First instruction as specified in the Initial Transfer:
Agenda same as specified under 1.01 - [****].
Objective:
review and clarify IGT experience with PureDepth display technology
3.
Periodic Instruction at PureDepth: [****],
twice per [****] until the [****] anniversary of the Effective Date, to [****]
IGT Representatives.
[****].
Review of PureDepth developments and technology update,
including update on PureDepth’s MLD Technology
[****].
Consultation and advice with PureDepth key member on IGT technical development
issues
[****].
Discussion and instruction of PureDepth ongoing display technology
[****].
Continued
[****].
Review and copying by IGT of relevant PureDepth technical records as
needed.
4.
Periodic Instruction at IGT in Nevada
[****]
until the [****] anniversary of the Effective Date by [****] PureDepth technical
representatives, with out
of
pocket
costs covered by IGT including reasonable travel costs.
23
CONFIDENTIAL
TREATMENT REQUESTED - REDACTED COPY
EXHIBIT
D
SPECIFICATIONS
Design
Pack
[****]
Manufacturing
Pack
[****]
24