Document:

Prepared by MERRILL CORPORATION

EMPLOYMENT AND

NON-SOLICITATION AGREEMENT

 

THIS EMPLOYMENT AND NON-SOLICITATION AGREEMENT

(this "Agreement") is effective as of the 28th day of November, 2000,

between Acrodyne Communications, Inc., a Delaware corporation

("Acrodyne"), and Adel L. Rizk ("Employee").

 

R E C I T A L S

 

A.            Acrodyne designs, manufactures, and

markets digital and analog television broadcast transmitter and translator

systems in the United States and internationally.

 

B.            Acrodyne hereby employs Employee as

Senior Vice President/Chief Financial Officer ("SVP/CFO") of

Acrodyne.

 

C.            Acrodyne and Employee desire to set

forth the certain agreements of Employee, including an agreement not to solicit

certain employees and customers of Acrodyne or any of its subsidiaries or

affiliates, in exchange for entering into this Agreement and granting to

Employee certain stock options.

 

NOW, THEREFORE, IN CONSIDERATION OF the

mutual covenants herein contained, the parties hereto agree as follows:

 

1.             Compensation.  In consideration of Employee's employment

with Acrodyne, Employee shall receive the following compensation:

 

(a)           Options. 

Contingent upon Employee's execution of this Agreement, Acrodyne will

grant Employee options to acquire seventy five thousand (75,000) shares of

stock of Acrodyne common stock subject to the terms and conditions contained in

the 1999 Long-Term Incentive Plan of Acrodyne and pursuant to a Non-Qualified

Stock Option Agreement, the form of which has been or is being provided to

Employee; and

 

(b)           Salary and bonus and other benefits

as set forth on Schedule A hereto.

 

2.             Confidentiality and Solicitation.

 

2.1.          Confidential Information.

 

(a)           In

consideration for the grant of options hereby, Employee will:

 

(1)           keep

all "Confidential Information" (as defined below) in trust for the

use and benefit of Acrodyne, and any affiliate or subsidiary of Acrodyne,

whether existing on the date hereof or subsequently formed (collectively, the

"Company Entities");

 

(2)           not,

except as required by Employee's duties as SVP/CFO of Acrodyne, authorized by

the Chief Executive Officer of Acrodyne or as required by law or any order,

rule, or regulation of any court or governmental agency (but only after notice

to Acrodyne of such requirement), at any time during or after the termination

of Employee's employment with Acrodyne, directly or indirectly, use, publish,

disseminate, distribute, or otherwise disclose any Confidential Information;

 

(3)           take

all reasonable steps necessary, or reasonably requested by any of the Company

Entities, to ensure that all Confidential Information is kept confidential for

the use and benefit of the Company Entities; and

 

(4)           upon

termination of Employee's employment or at any other time any of the Company

Entities in writing so request, promptly deliver to such Company Entity all

materials constituting Confidential Information relating to such Company Entity

(including all copies) that are in Employee's possession or under Employee's

control.  If requested by any of the

Company Entities to return any Confidential Information, Employee will not make

or retain any copy of or extract from such materials.

 

(b)           For

purposes of this Section 2.1, Confidential Information means any proprietary or

confidential information of or relating to any of the Company Entities that is

not generally available to the public. 

Confidential Information includes all information developed by or for

any of the Company Entities concerning marketing used by any of the Company

Entities, suppliers, any customers with which any of the Company Entities has

dealt prior to the Termination Date, plans for development of new products and

services and expansion into new areas or markets, internal operations,

financial information, operations, budgets, and any trade secrets or

proprietary information of any type owned by any of the Company Entities,

together with all codes, written, graphics, other materials relating to all or

any of the same, and any trade secrets as defined in the Maryland Uniform Trade

Secrets Act, as amended from time to time.

 

2.2.          Non-Solicitation.

 

(a)           During

the Employment Term and for twelve (12) calendar months thereafter (regardless

of the reason why Employee's employment is terminated), Employee will not

directly or indirectly:

 

(i)            hire,

attempt to hire, or to assist any other person or entity in hiring or

attempting to hire any employee of any of the Company Entities or any person

who was an employee of any of the Company Entities within the prior one (1)

year period; or

 

(ii)           solicit,

in competition with any of the Company Entities, the business of any customer

of any of the Company Entities or any entity whose business any of the Company

Entities solicited during the one (1) year period prior to Employee's

termination.

 

(b)           Notwithstanding

anything else contained in this Section 2.2, Employee may own, for investment

purposes only, up to five percent (5%) of the stock of any publicly-held

corporation whose stock is either listed on a national stock exchange or on the

NASDAQ National Market System if Employee is not otherwise affiliated with such

corporation.

 

(c)           The

twelve (12) calendar month time period referred to above shall be tolled on a

day-for-day basis for each day during which Employee participates in any

activity in violation of this Section 2.2 so that Employee is restricted from

engaging in the conduct referred to in this Section 2.2 for a full twelve (12)

calendar months.

 

2.3.          Acknowledgement.  Employee acknowledges and agrees that this

Agreement (including, without limitation, the provisions of Sections 2 and 3)

is a condition of Employee's being employed by Acrodyne, Employee having access

to Confidential Information, Employee's eligibility to participate in the 1999

Long-Term Incentive Plan, Employee's advancement at Acrodyne, and Employee

being eligible to receive other benefits at Acrodyne; and further, that this

Agreement is entered into, and is reasonably necessary, to protect the Company

Entities' investment in Employee's training and development, and to protect the

goodwill and other business interests of the Company Entities.

 

3.             Remedies.

 

3.1.          Injunctive Relief.  The covenants and obligations contained in

Section 2 relate to matters which are of a special, unique, and extraordinary

character and a violation of any of the terms of such Section will cause

irreparable injury to the Company Entities, the amount of which will be

impossible to estimate or determine and which cannot be adequately

compensated.  Therefore, Company

Entities will be entitled to an injunction, restraining order, or other

equitable relief from any court of competent jurisdiction (subject to such

terms and conditions that the court determines appropriate), restraining any

violation or threatened violation of any of such terms by Employee and such

other persons as the court orders.  The

parties acknowledge and agree that judicial action, rather than arbitration, is

appropriate with respect to the enforcement of the provisions of Section

2.  The forum for any litigation

hereunder shall be the Circuit Court of Baltimore County or the United States

District Court (Northern Division) sitting in Baltimore, Maryland.

 

3.2.          Cumulative Rights and Remedies.    Rights and remedies provided by Sections 2

and 3 are cumulative and are in addition to any other rights and remedies any

of the Company Entities may have at law or equity.

 

4.             Miscellaneous.

 

4.1.          [RESERVED]

 

 

4.2.          Headings.  The descriptive headings of the Sections of

this Agreement are inserted for convenience only, and do not constitute a part

of this Agreement.

 

4.3.          Notices.  All notices and other communications

hereunder shall be in writing and shall be deemed give upon (a) oral or written

confirmation of a receipt of a facsimile transmission, (b) confirmed delivery

of a standard overnight courier or when delivered by hand, or (c) the expiration

of five (5) business days after the date mailed, postage prepaid, to the

parties at the following addresses:

 

	

  Acrodyne to:

  	

   

  	

  Nat Ostroff,

  
	

   

  	

   

  	

  President

  
	

   

  	

   

  	

  10706 Beaver Dam Road

  
	

   

  	

   

  	

  Cockeysville, Maryland 21030

  
	

   

  	

   

  	

   

  
	

  Copy to:

  	

   

  	

  Steven A. Thomas, Esquire

  
	

   

  	

   

  	

  Thomas & Libowitz, P.A.

  
	

   

  	

   

  	

  100 Light Street, Suite 1100

  
	

   

  	

   

  	

  Baltimore, Maryland 21202

  
	

   

  	

   

  	

   

  
	

  If to Employee to:

  	

   

  	

  Adel L. Rizk

  
	

   

  	

   

  	

  174 Blackwood Lane

  
	

   

  	

   

  	

  Douglasville, Pennsylvania 19518

  

 

or to such other address as will be furnished in writing by any

party.  Any such notice or communication

will be deemed to have been given as of the date so mailed.

 

4.4.          Assignment.  Acrodyne may assign this Agreement to (i)

any of the Company Entities, (ii) to Sinclair Broadcast Group, Inc., or any of

its subsidiaries or affiliates, or (iii) to the acquirer of all or

substantially all of Acrodyne's assets, or the surviving entity of any merger

or consolidation involving Acrodyne in which Acrodyne is not the surviving

entity, and Employee hereby consents and agrees to be bound by any such

assignment by Acrodyne.  Employee may

not assign, transfer, or delegate Employee's rights or obligations under this

Agreement or under the 1999 Long-Term Incentive Plan or the Non-Qualified Stock

Option Agreement, and any attempt to do so is void.  To the extent not otherwise provided in this Agreement, this

Agreement is binding on and inures to the benefit of the parties, their

successors and assigns, and the executors, administrators, and other legal

representatives of Employee.  Except to

the extent otherwise provided in this Agreement, no other third parties, other

than Company Entities and any such acquirer, shall have, or are intended to

have, any rights under this Agreement.

 

4.5.          Counterparts.  This Agreement may be signed in separate

counterparts.

 

4.6.          Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE

STATE OF MARYLAND (REGARDLESS OF THE LAWS THAT MIGHT BE APPLICABLE UNDER

PRINCIPLES OF CONFLICTS OF LAW) AS TO ALL MATTERS (INCLUDING VALIDITY,

CONSTRUCTION, EFFECT, AND PERFORMANCE).

 

4.7.          Severability.  If the scope of any provision contained in

this Agreement is too broad to permit enforcement of such provision to its full

extent, then such provision shall be enforced to the maximum extent permitted

by law, and Employee hereby consents that such scope may be reformed or

modified accordingly, and enforced as reformed or modified, in any proceeding

brought to enforce such provision. 

Subject to the immediately preceding sentence, whenever possible, each

provision of this Agreement will be interpreted in such a manner as to be

effective and valid under applicable law, but if any provision of this

Agreement is held to be prohibited by or invalid under applicable law, such

provision, to the extent of such prohibition or invalidity, shall not be deemed

to be a part of this Agreement, and shall not invalidate the remainder of such

provision or the remaining provision of this Agreement.

 

4.8.          Entire Agreement/At Will Employment.  This Agreement, the Non-Qualified Stock

Option Agreement, and the Long-Term Incentive Plan constitute the entire

agreement, and supersede all prior agreements and understandings, written or

oral, among the parties with respect to the subject matter of this

Agreement.  This Agreement may not be

amended or modified except by agreement in writing, signed by the party against

whom enforcement of any waiver, amendment, modification, or discharge is

sought.  Notwithstanding anything else in this

Agreement, the employment of Employee is "at will" and is not for a

specified period of time, and either Acrodyne or Employee may terminate the

employment of Employee with or without cause at any time.  There is not, nor will there be, unless in a

writing signed by all of the parties to this Agreement, any express or implied agreement

as to the continued employment of Employee.

 

4.9.          Interpretation.  This Agreement is being entered into among

competent and experienced business professionals (who have had an opportunity

to consult with counsel), and any ambiguous language in this Agreement will not

necessarily be construed against any particular party as the drafter of such

language.

 

4.10.        Continuing Obligations.  The following provisions of this Agreement

will continue and survive the termination of this Agreement: 2, 3 and 4.

 

4.11.        Taxes.  Acrodyne may withhold from any payments

under this Agreement or the Non-Qualified Stock Option Agreement all applicable

federal, state, city, or other taxes required by applicable law to be so

withheld.

 

4.12.        Arbitration and Extension of Time.  Except as specifically provided in Section

3, any dispute or controversy arising out of or relating to this Agreement,

Employee's employment by Acrodyne or otherwise arising between the parties

shall be determined and settled by arbitration in Baltimore, Maryland in

accordance with the Commercial Rules of the American Arbitration Association

then in effect, the Federal Arbitration Act, 9 U.S.C. § 1 et seq.,

and the Maryland Uniform Arbitration Act, and judgment upon the award rendered

by the arbitrator(s) may be entered in any court of competent jurisdiction.

Whenever any action is required to be taken under this Agreement within a

specified period of time and the taking of such action is materially affected

by a matter submitted to arbitration, such period shall automatically be

extended by the number of days, plus ten (10) that are taken for the

determination of that matter by the arbitrator(s).  Notwithstanding the foregoing, the parties agree to use their best

reasonable efforts to minimize the costs and frequency of arbitration

hereunder.

 

THIS AGREEMENT CONTAINS A WAIVER OF YOUR RIGHT TO A TRIAL BY

COURT OR JURY.

 

THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH

MAY BE ENFORCED BY THE PARTIES.

 

[REST OF PAGE LEFT INTENTIONALLY BLANK]

 

IN WITNESS WHEREOF, the parties hereto have

executed this Agreement effective as of the date first written above.

 

ACRODYNE COMMUNICATIONS, INC.

 

By:          ________________________________________

Title:       ________________________________________

 

 

EMPLOYEE:

 

 

_______________________________________

Adel L. Rizk

 

 

For

valuable consideration and with the intent to be legally bound, Sinclair

Broadcast Group, Inc., hereby guarantees the monetary obligations of Acrodyne

Communications, Inc., under this Agreement.

 

SINCLAIR BROADCAST GROUP, INC.

 

 

By:          ________________________________________

Title:       ________________________________________Prepared by MERRILL CORPORATION

LICENSE AGREEMENT

 

THIS LICENSE AGREEMENT, entered into as of March

___, 2000, is made between Sinclair Broadcast Group, Inc., a Maryland

corporation ("Licensor"), and Acrodyne Industries, Inc., a ________

corporation ("Licensee").

 

Explanatory

Statement

 

Licensor wishes to license the use of the

Technical Information (as hereafter defined) to Licensee and Licensee wishes to

license the Technical Information from Licensor, upon the terms and conditions

set forth in this Agreement.  The

parties have entered into other agreements more fully set forth below.

 

NOW, THEREFORE, the parties hereto represent,

warrant, covenant and agree as follows:

 

Article 1 - Definitions

 

As used in this Agreement:

 

"Licensee Improvements" shall mean any

technical information or know-how developed by Licensee after the date of the

initial transfer of the Technical Information but before the end of the term of

this Agreement, relating to the Technical Information.

 

"Licensor Improvements" shall mean any

technical information or know-how developed by Licensor after the date of the

initial transfer of the Technical Information but before the end of the term of

this Agreement, relating to the Technical Information.

 

"Net Sales Revenue" shall mean gross

sales revenue less any taxes, returns, allowances, quantity discounts, freight,

and insurance when the same are actually paid or allowed.

 

"Products"shall mean the “Quantum

Line” of UHF IOT-based, high power, digital and analog transmitters.

 

"Technical Information" shall mean all

technical information and know-how heretofore developed and/or property  owned by Licensor relating to the Products,

including, without limitation, design technology and manufacturing technology.  In addition, Licensee Improvements and

Licensor Improvements shall constitute Technical Information.

 

Article 2 - Grant of License

 

2.1.         

Licensor hereby grants to Licensee, and Licensee hereby accepts from

Licensor, a worldwide, exclusive, nonassignable, nonsublicensable, exclusive

license (the “License”) to use the Technical Information to incorporate in,

make, manufacture, and sell, the Products.

 

Article 3 - Delivery of Technical Information

 

3.1.          Licensor

agrees to make available to Licensee the Technical Information as set forth

below.

 

3.2.          Licensor

shall furnish to Licensee on an as available basis copies of all documents with

respect to the Technical Information that are now or are in the future in

Licensor's possession and that are material to the use of the Technical

Information by Licensee pursuant to this Agreement.

 

3.3.          During

the term of this Agreement, Licensor shall make available appropriate personnel

then employed by Licensor or its subsidiaries or affiliates to answer inquiries

from Licensee about the Technical Information (other than Licensee Improvements).

 

Article 4 - Improvements

 

4.1.          During

the term of this Agreement, Licensor shall promptly provide Licensee with

copies of all documentation (as described in Section 3.2 above) with

respect to any Licensor Improvements, but all Licensor Improvements shall

remain the property of Licensor.

 

4.2.          During

the term of this Agreement, Licensee shall promptly provide Licensor with

copies of all documentation with respect to any Licensee Improvements.  Licensee hereby assigns to Licensor all of

Licensee’s right, title and interest in and to all Licensee Improvements, other

than the License to use any such Licensee Improvements, pursuant to the License

granted hereby.

 

Article

5 - Royalty

 

5.1.          During

each of the first 5 years of this License, Licensee shall pay Licensor an

annual royalty of $300,000.  Following

the 5th year of this License, Licensee shall pay Licensor an annual

royalty equal to 1.0 percent of the gross revenues realized by Licensee

attributable to Licensee’s use of the Technical Information, including (without

limitation) from sales of the Product or any other product using the Technical

Information.  All annual royalties shall

be paid within 30 days following the last day of the year to which such royalty

relates.

 

Article 6 - Confidentiality

 

6.1.          Except

as otherwise provided in Section 6.2, beginning with the date of this

Agreement and in perpetuity thereafter, Licensee agrees to maintain in

confidence all Technical Information previously received or hereafter received

by Licensee, and Licensee agrees not to disclose such Technical Information to

third parties. During the term of this Agreement Licensor shall not disclose,

sell or license any or all Technical Information to any third parties to the

extent any such action would adversely impact the License granted hereby or the

exclusive nature thereof.

 

6.2.          Nothing

in this Agreement shall limit in any way (i) disclosure of Technical

Information required by a court, administrative agency or pursuant to any legal

requirement, or (ii) disclosure of Technical Information that is necessary to

prevent danger to the public.

 

6.3.          Nothing

in this Agreement shall limit Licensee’s disclosure with respect to Technical

Information:

 

6.3.1.  which, as of the effective date of this

Agreement is part of the public domain;

 

6.3.2.  which subsequently becomes part of the

public domain through no fault of the receiving party;

 

6.3.3.  which Licensee can show was in its  possession prior to the date of this

Agreement, as evidenced by written records kept in the ordinary course of

business or by the proof of actual use prior to the date of this Agreement, and

which Technical Information had not been wrongfully acquired, directly or

indirectly, from Licensor (provided, however, that the foregoing provisions of

this Section 6.3.3 shall not apply to or permit disclosure of any

Technical Information provided prior to the date of this Agreement to Licensee

or any of its affiliates by Licensor or any of Licensor’s subsidiaries or

affiliates); or

 

6.3.4.

which is subsequently disclosed to Licensee by a third party not in violation

of any right of, or obligation to, Licensor or any subsidiary or affiliate

thereof.

 

 

6.4.          Press

Release.  The parties hereto shall

cooperate in issuing a press release publicly announcing the entering into of

this Agreement.

 

6.5.          This

Article 6 shall survive the expiration or other termination of this

Agreement.

 

Article 7 - Indemnity

 

7.1.          To

the fullest extent permitted by law, Licensee shall indemnify, defend and hold

harmless Licensor and Licensor's directors, officers, employees, and agents and

their respective successors, legal representatives, heirs and assigns

(collectively the "Licensor Indemnitees"), against any liability,

damage, loss, or expense (including, without limitation, reasonable attorneys'

fees and expenses of litigation) (all of the foregoing collectively,

"Liability and Expense"), incurred by or imposed upon the Licensor

Indemnitees or any one or more of them in connection with, any: (i) claims,

suits, actions, demands, or judgments arising out of any theory of product

liability (including, but not limited to, actions in the form of tort,

warranty, or strict liability) concerning any Product made, used or sold by the

Licensee or (ii) any breach or threatened breach by Licensee of this Agreement.

 

7.2.          To

the fullest extent permitted by law, Licensor shall indemnify, defend and hold

harmless the Licensee and its directors, officers, employees, and agents and

their respective successors, legal representatives, heirs and assigns (the

"Licensee Indemnitees"), against any Liability, incurred by or

imposed upon the Licensee Indemnitees or any one or more of them, in connection

with any breach or threatened breach by Licensor of this Agreement.

 

7.3.          The

indemnifying party agrees, at its own expense, to provide attorneys reasonably

acceptable to the indemnified party to defend against any actions brought or

filed against the indemnified party with respect to the subject of indemnity

contained in clause (i) of Section 7.1, whether or not such actions are

rightfully brought.  The indemnifying

party hereunder will not settle such actions without the mutual consent of

Licensor and Licensee.

 

7.4.          THE

PARTIES ACKNOWLEDGE THAT THE TECHNICAL INFORMATION MAY HAVE DEFECTS.  NEITHER OF THE PARTIES MAKES ANY WARRANTIES,

EXPRESS OR IMPLIED, AS TO  THE TECHNICAL

INFORMATION OR AS TO ANY INVENTION OR PRODUCT CONCEIVED, DISCOVERED, LICENSED,

DEVELOPED OR SOLD IN CONNECTION WITH THE TECHNICAL INFORMATION  OR THIS AGREEMENT, OR AS TO THE

MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE TECHNICAL

INFORMATION OR ANY SUCH INVENTION OR PRODUCT. 

NEITHER PARTY SHALL BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL OR OTHER

DAMAGES SUFFERED BY THE OTHER PARTY IN CONNECTION WITH OR RESULTING FROM THE

TECHNICAL INFORMATION OR ANY SUCH INVENTION OR PRODUCT.

 

7.5.          This

Article 7 shall survive the expiration or other termination of this

Agreement.

 

Article 8 - Insurance

 

8.1.          Beginning

no later than the time that any Products are distributed or sold by the

Licensee, the Licensee shall, at its sole cost and expense, procure and

maintain comprehensive general liability insurance from an insurance company

agreeable to Licensor in Licensor's reasonable discretion in amounts not less

than One Million Dollars ($1,000,000) per incident and Ten Million Dollars

($10,000,000) annual aggregate and naming the Licensor Indemnitees as

additional insureds.  Such comprehensive

general liability insurance shall provide (i) product liability coverage and

(ii) broad form contractual liability coverage for the Licensee's

indemnification under clause (i) of Section 7.1 above and (iii) a

provision that the insurer will provide Licensor with written notice at least

fifteen (15) days prior to the cancellation, nonrenewal or material change of

such insurance.  The amount of any

deductibles must be reasonably acceptable to Licensor.  The minimum amounts of insurance coverage

required under this Section 8 shall not be construed to create a limit

of Licensee's liability with respect to its indemnification obligations under Section

7.1 above.

 

8.2.          Licensee

shall provide Licensor with written evidence of such insurance upon request of

Licensor. Licensee shall provide Licensor with written notice at least fifteen

(15) days prior to the cancellation, nonrenewal, or material change in such

insurance; if the Licensee does not obtain replacement insurance providing

comparable coverage within such fifteen (15) day period, in addition to any

other rights or remedies Licensor may have at law or in equity, the Licensor

shall have the right to terminate this Agreement effective at the end of such

fifteen (15)-day period without notice or any additional waiting periods.

 

8.3.          Licensee

shall maintain such comprehensive general liability insurance during (i) the

period that any Products are eing distributed or sold by Licensee and (ii) a

reasonable period after the period referred to in clause (i) of this Section

8.3, which in no event shall be less than fifteen (15) years.

 

8.4.          This

Article 8 shall survive the expiration or other termination of this

Agreement.

 

Article 9 - Representations

 

9.1.          Licensee

represents that it will not manufacture, distribute or sell any of the Products

without first making every reasonable good faith effort to ensure that such

Products are safe and effective for their intended purpose or for any other

reasonably anticipated purpose for which such Products might be reasonably

utilized.

 

9.2.          Licensee

represents that it will not use the name or names of Licensor or any subsidiary

or affiliate of Licensor or of any employee of Licensor or any such subsidiary

or affiliate or any adaptation of any of the foregoing, in any advertising,

promotional, or in any funding document related to the Products, on any

Products, or generally with respect to any matter arising out of this

Agreement, without prior written consent of Licensor.

 

9.3.          Licensee

hereby acknowledges that it is not authorized to make any representations or

warranties of any nature to any third party on behalf of the Licensor.

 

9.4.          This

Article 9 shall survive the expiration or other termination of this

Agreement.

 

Article 10 - Expiration, Termination and

Survival, Purchase Option

 

10.1.        Except

as provided otherwise in this Agreement, the term of this Agreement shall

commence on the date of this Agreement set forth above and shall expire and

terminate on the 10 year anniversary thereof (the “Termination Date”), unless

terminated earlier pursuant to this Article 10 or pursuant to any other

provision of this Agreement permitting such earlier termination.

 

10.2.        In

the event that any party hereto breaches this Agreement and fails to cure such

breach within thirty (30) days after notice thereof, the nonbreaching party

shall be entitled to terminate this Agreement upon written notice of such

termination.

 

10.3         The

Licensee shall have the right to terminate this Agreement by written notice

given to Licensor during the 30 day period commencing on the first anniversary

of the date of this Agreement, if prior to the delivery of such notice Licensor

has not furnished Licensee with sufficient documentation relating to the

Technical Information to allow Licensee to manufacture the Products.

 

10.4.        Upon

the expiration or other termination of this Agreement, Licensee shall cease its

use of the Technical Information as of the effective date of such expiration or

termination; provided, Licensee shall continue to have a license

following the termination of the License solely for the purpose of providing

technical support services with respect to Products sold during the term of the

License.

 

10.5.        The

rights of the terminating party shall not be prejudiced by its termination of

this Agreement.

 

10.6.        In

the event that Licensee shall become insolvent, shall make an assignment for

the benefit of creditors, or shall have a petition of bankruptcy filed by or

against it, which petition is not vacated or otherwise removed within thirty

(30) days after the filing thereof, Licensor shall have the right, to the

extent permitted by law, to terminate this Agreement by giving the Licensee

written notice of such termination.

 

10.7.        In

the event that Licensor justly terminates this Agreement or upon the expiration

of this Agreement, the Licensee shall promptly return to Licensor all documents

and other materials relating to the Technical Information; provided,

that if Licensee has duly exercised the purchase option set forth in Section

10.8 below, Licensee shall be permitted to retain such documents and other

materials in connection with its ownership of the Technical Information.

 

10.8.        Licensee

shall have the option, exercisable by providing Licensor with written notice

thereof during the 90-day period immediately preceding the Termination Date, to

purchase the Technical Information on the Termination Date by making a payment

to Licensor on the Termination Date in an amount equal to the product obtained

by multiplying  (a) two (2) times (b)

the amount of aggregate royalties due pursuant to Section 5.1 hereof with

respect to years six through ten of the License (which amount shall be in

addition to the obligation to pay such royalties).

 

10.9.        This

Article 10 and the remaining Articles of this Agreement shall survive

the expiration or other termination of the Agreement.

 

Article 11 - Nonassignment and Inurement

 

This Agreement is personal in character, and

Licensee shall not be permitted to assign, sell, transfer, or encumber this

Agreement or the interest therein, or permit any other arrangement having

similar effect, by operation of law or otherwise, without the express written

consent of the Licensor, which consent may be withheld in Licensor’s sole

discretion.  Licensor may assign this

Agreement to any of its subsidiaries or affiliates or to any other entity or

person without the consent of Licensee. Any such assignment by Licensor shall

relieve Licensor of its obligations and liabilities hereunder.

 

Article 12 - Arbitration

 

12.1.        All

disputes and differences arising from this Agreement or from agreements

regarding its performances shall be exclusively and finally settled by binding

arbitration in Baltimore, Maryland according to the Commercial Arbitration

rules ("CAR") of the American Arbitration Association by three (3)

arbitrators appointed in accordance with CAR. 

The arbitrators shall not have the power to arbitrate any issue of

patent validity or patent infringement. 

Unless prohibited or restricted by law, each party agrees to provide to

the arbitrators and to the other party such documents, other evidence, or

witness testimony as may reasonably be requested by the other party and as are

relevant to the issues being arbitrated. 

Such request shall be subject to a strict confidentiality agreement and

shall not affect time limits provided for in the CAR and/or in this Agreement.

 

12.2.        The

arbitral award and the determinations and decisions of the arbitrators shall be

substantiated in writing.  The arbitral

tribunal shall decide on the matter of costs of the arbitration and which of

the parties shall bear the costs or in what proportions the costs shall be

borne by the parties.

 

12.3.        The

arbitral award shall be final and biding and no appeal shall lie therefrom.

 

12.4.        Judgment

on the award or any order, final or interim, ordered by the arbitrators may be

entered, registered, or filed for enforcement purposes in any court having

jurisdiction thereof.

 

Article 13 - Notices

 

13.1         All

notices, requests, consents, payments, demands, and other communications

required or contemplated under this Agreement shall be in writing and (a)

personally delivered or sent via telecopy (receipt confirmed and followed

promptly by delivery of the original), or (b) sent by Federal Express or other

reputable overnight delivery service (for next business day delivery), shipping

prepaid, as follows:

 

If to Licensor to:

 

Mr.

David Smith

President

Sinclair Broadcast Group, Inc.

10706 Beaver Dam Road

Cockeysville, MD 21030

Telephone:  (410)

568-1506

Fax:  (410)

568-1533

 

With a copy to:

 

Sinclair Broadcast Group, Inc.

10706 Beaver Dam Road

Cockeysville, MD 21030

Attention: 

General Counsel

Telephone:  (410)

568-1524

Fax:  (410)

568-1537

 

If to Licensee to:

 

Mr. Robert A. Manuso

President

Acrodyne Industries, Inc.

516 Township Line Road

Blue Bell, Pennsylvania 19422

Telephone:  (215)

542-7000

Fax:  (215)

540-5837

 

or to such other party or addresses as

any party may request by notice given as aforesaid.  Notices shall be deemed given and received at the time of

personal delivery or completed telecopying, or, if sent by Federal Express or

such other overnight delivery service one business day after such sending.

 

Article

14 - Illegality and Unenforceability

 

In the event a term or condition of this

Agreement is found by a competent court or arbitration tribunal to be invalid

or unenforceable, the parties hereto shall use their reasonable good faith efforts

to preserve the intent of  this

Agreement by substituting a reasonably comparable term or condition for the

benefit of the part to whose advantage the invalid or unenforceable condition

operated or was intended to operate.

 

Article 15 - Entire

Agreement

 

This Agreement contains the complete and

exclusive agreement of the parties hereto with respect to its subject matter

and supersedes all prior understandings and representations (oral or written)

between the parties with respect to its subject matter.  Neither this Agreement nor any subsequent

agreement amending, supplementing, or terminating this Agreement shall be

binding on the parties unless and until it has been signed by duly authorized

representatives of the parties hereto.

 

Article 16 - No Waiver

 

The failure of any party to enforce at any time

any provision of this Agreement, or any right with respect thereto, or exercise

any election herein provided, shall in no way be considered to be a waiver of

such provision, right or election, or to in any way affect the validity of this

Agreement.  The exercise by any party or

any right or election under the terms or covenants herein contained shall not

preclude or prejudice any party from exercising the same or any other right it

may have under this Agreement, irrespective of any previous action or

proceeding taken by the parties hereunder.

 

Article 17 - Time

 

Time is of the essence of this Agreement.

 

Article 18 - Captions

 

All captions are for convenience of reference

only, do not form a part of this Agreement, and shall not affect in any way the

meaning or interpretation of this Agreement.

 

Article 19 - Governing

Law

 

This Agreement shall be interpreted in

accordance with, and governed by, the laws of the State of Maryland.

 

Article 20 – Guaranty

 

At Licensor’s option, this Agreement shall not

be binding on Licensor unless and until the Guaranty following this Agreement

is executed by Acrodyne Communications, Inc. and delivered to Licensor.

 

IN WITNESS WHEREOF, this Agreement has been

executed by the respective duly authorized officers or agents for parties

hereto as of the day and year first above written.

 

Licensor:

 

SINCLAIR

BROADCAST GROUP, INC.

 

 

By:__________________________

Name:________________________

Title:_______________________

 

 

Licensee:

 

ACRODYNE INDUSTRIES, INC.

 

 

By:__________________________

Name:________________________

Title:_______________________

 

GUARANTY

 

FOR THE CONSIDERATION OF $1.00 AND OTHER VALUE

RECEIVED, Acrodyne Communications, Inc., a Delaware corporation (the “Guarantor”),

hereby unconditionally guarantees to Sinclair Broadcast Group, Inc., the

performance by Acrodyne Industries, Inc. of all of its obligations and

liabilities under the foregoing License Agreement.  The Guarantor hereby waives notice of any acceptance of or

reliance on this Guaranty by Sinclair Broadcast Group, Inc.

 

Guarantor:

 

ACRODYNE COMMUNICATIONS,

INC.

 

 

By:__________________________

Name:________________________

Title:_______________________

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