Document:

ex10_2.htm

    
      

      

    

    

      Exhibit
10.2

      

       

      OLED
TECHNOLOGY LICENSE AND TECHNICAL ASSISTANCE AGREEMENT

       

      

      THIS OLED
TECHNOLOGY LICENSE AND TECHNICAL ASSISTANCE AGREEMENT (this “Agreement”) is
entered into by and between Kyocera Corporation, a Japanese corporation with a
place of business 6 Takeda Tobadono-Cho, Fushimi-ku, Kyoto 612-8501, Japan
(“Kyocera”),
and Universal Display Corporation, a Pennsylvania corporation with a place of
business at 375 Phillips Blvd, Ewing, New Jersey 08618, U.S.A. (“Universal
Display”).

       

      BACKGROUND

       

      WHEREAS,
Universal Display has rights in certain patents and possesses certain know-how
concerning Organic Light Emitting Devices; and

       

      WHEREAS,
Kyocera desires to obtain license rights to practice under these patents and to
use this know-how on the terms and conditions set forth herein; and

       

      WHEREAS,
Kyocera desires to have an option to make this Agreement effective on certain
conditions set forth herein.

       

      NOW,
THEREFORE, intending to be legally bound, each of Kyocera and Universal Display
hereby agrees as follows:

       

       

      AGREEMENT

       

      Article
1 Definitions

       

      In
addition to other terms defined elsewhere herein, the following terms shall have
their corresponding meanings when used this Agreement.

       

      1.1 “Affiliate” means a
corporation, partnership, trust or other entity that directly or indirectly
(through one or more intermediates) controls, is controlled by or is under
common control with the party in question.  For such purposes,
“control,” “controlled by” and “under common control with” shall mean the
ability to make, or participate meaningfully in the making of, business
decisions on behalf of the relevant entity and/or such party, as
applicable.  “Control” shall be presumed where the party in question
owns fifty percent (50%) or more of the voting or other similar interests in the
relevant entity.

       

      1.2 “Confidential Items”
shall have the meaning set forth in Section 7.2 below.

       

      1.3 “Existing Universal Display
Patents” means all patents and patent applications owned by Universal
Display, or that Universal Display has the right to license to Kyocera
hereunder, which patents or patent applications specifically claim or cover an
OLED Module made by a Permitted Process, and which patents or patent
applications have already been filed anywhere in the world as of the Effective
Date, as well as its PCT patent application and all

       

      
        
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      1.4 foreign
patent applications corresponding thereto, all issued, granted, allowed or
registered patents corresponding to such patent applications, and any
corresponding family member of that these patent applications, including
divisions, reissues, renewals, reexaminations, extensions, continuations, or
continuations-in-part thereof, including, but not limited to, the patents and
patent applications listed in Exhibit
A.

       

      1.5 “Improvements” means
all inventions, discoveries, information and materials, patentable or
unpatentable, that are enhancements or improvements to, or modifications or
derivative works of, the Universal Display Technology.

       

      1.6 “Joint Improvements”
means Improvements that are first conceived, developed or reduced to practice
during the Term jointly by personnel of Kyocera and Universal Display, or by
either of their personnel without any inventive contribution by the other
party’s personnel but based on their use of the other party’s Confidential
Items.

       

      1.7 “Know-How” means
unpatented technical information, data, specifications, plans, drawings,
designs, blueprints, formulae, processes and other similar items of a trade
secret or confidential nature.

       

      1.8 “Kyocera Improvements”
means Improvements that are first conceived, developed or reduced to practice
during the Term by personnel of Kyocera without any inventive contribution by
personnel of Universal Display or the use of any Universal Display Confidential
Items.

       

      1.9 “Licensed Product”
means an OLED Module that is made using a Permitted Process, or any product or
part thereof that incorporates such an OLED Module, which OLED Module (a) is
covered, in whole or in part, by any Valid Claim(s) of a Universal Display
Patent; (b) is manufactured using a process that is covered, in whole or in
part, by any Valid Claim(s) of a Universal Display Patent; and/or (c) is
manufactured using any of the Universal Display Know-How.

       

      1.10 “Lighting” means usage
for general illumination or as specialty lighting source, such as backlighting
for LCD displays and consumer electronics, aviation or automotive lighting, and
mood lighting in public or private buildings.

       

      1.11 “Net Sales
Revenue”

       

      1.11.1 For
Licensed Products that are OLED Modules sold to non-Affiliated third parties,
“Net Sales Revenue” means the gross amount invoiced or received, whichever
occurs sooner, on account thereof, less (a) applicable sales and other similar
taxes and customs clearance fees to the extent actually collected and remitted
to the appropriate taxing or customs authorities; (b) shipping charges to the
extent separately itemized on the customer invoice and actually paid to
third-party carriers; (c) insurance costs to the extent separately itemized on
the customer invoice and actually paid or accrued for such purpose; and (d)
refunds or credits actually given to third parties for returned or defective
items.  [The confidential material contained herein has been omitted
and has been separately filed with the Commission.]  If
the

       

      
        
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      1.11.2 OLED
Module is sold or otherwise transferred for consideration other than solely
cash, “Net Sales Revenue” means the average selling price at which OLED Modules
of similar kind and quantity are being offered for sale to non-Affiliated third
parties at such time, or if no such selling price is available, the fair market
value of such OLED Modules.  As used in this Section 1.10, the
“selling price” shall be the amount calculated according to the first two
sentences of this subsection.

       

      1.11.3 For
Licensed Products that are OLED Modules sold or otherwise transferred to Kyocera
Affiliates, “Net Sales Revenue” means the transfer price utilized by Kyocera for
such intercompany sale or transfer, including all commissions and other amounts
payable in connection therewith, but less the various permitted deductions under
(a) through (d) of subsection 1.10.1 above to the extent such amounts are
actually included in the transfer price, as shown by appropriate invoices or
other similar documentation; provided, however, [The confidential material
contained herein has been omitted and has been separately filed with the
Commission.]

       

      1.11.4 [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      1.11.5 For
Licensed Products that are not themselves OLED Modules, but that incorporate one
or more OLED Modules (e.g., a display component that includes items in addition
to those specified under the OLED Module definition), which Licensed Products
are sold or otherwise transferred to third parties, “Net Sales Revenue” would be
calculated in the same manner as for OLED Modules according to subsection 1.10.1
or 1.10.2 or 1.10.3 above, whichever is applicable, except that “Net Sales
Revenue” would only include that portion of the sales or transfer price which is
fairly attributable to the OLED Module(s) incorporated in such Licensed
Products.  [The confidential material contained herein has been
omitted and has been separately filed with the Commission.]  Any
applicable deductions and commissions from the selling price of the Licensed
Product per subsection 1.10.1 above shall also be limited to only those portions
of such deductions and commissions which are fairly attributable to the OLED
Module(s) incorporated in such Licensed Products.  [The confidential
material contained herein has been omitted and has been separately filed with
the Commission.]

       

      1.11.6 If either
party presents reasonable evidence that the amount calculated as set forth above
does not fairly reflect the fair market value of any OLED Modules being sold or
otherwise transferred (such as evidence that the industry-wide average sales
price of substantially similar products differs significantly from the price
calculated herein), the parties shall in good faith negotiate a more equitable
method of calculating Net Sales Revenue with respect to such OLED
Modules.

       

      1.12 “OLED” or “Organic Light Emitting
Device” means a device
consisting of two or more electrodes, at least one of which is transparent,
together with one or more chemical substances deposited between these two
electrodes, at least one of which is an organic or organometallic material,
which device emits light when a voltage is applied across the
electrodes.

       

      
        
          Universal
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      1.13 “OLED Module” means a
device designed for use in active matrix flat panel OLED display applications
(which expressly exclude applications for Signage and Lighting), which device
has (1) an OLED, a Permitted Substrate supporting the OLED, an active matrix
backplane, encapsulation components, such filters, polarizers and other display
optics as may be used to enhance or modify the color, contrast or other visual
properties of the device (collectively, an “Active Matrix OLED
Panel”); and (2) [The confidential material contained herein has been
omitted and has been separately filed with the Commission.]

       

      1.14 “Permitted Processes”
means a deposition process wherein the Phosphorescent Material in the OLED
emissive layer is deposited through “dry” processing methods, such as vacuum
thermal evaporation, but excluding [The confidential material contained herein
has been omitted and has been separately filed with the
Commission.].

       

      1.15 “Permitted
Substrate” means (a) a
silicate-containing inorganic material of sufficient thickness to support an
OLED, which material fractures or substantially and irreversibly deforms upon
being bent to a radius of curvature of 50 cm or less, and/or (b) [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      1.16 “Phosphorescent
Material” means an organometallic or other organic material that, when
used in the emissive layer of an OLED, emits radiation from a triplet excited
state or enhances the emission of radiation through phosphorescent
sensitization.

       

      1.17 “Signage” means usage
for advertising or in informational products, such as billboards, exit signs and
digital clocks or watches, wherein the product emits light to produce
predetermined images or shapes such as numbers, letters or
pictures.

       

      1.18 “Term” shall have the
meaning set forth in Section 9.1 below.

       

      1.19 “Universal Display
Know-How” means all Know-How of Universal Display relating to the
practice of inventions claimed in the Universal Display Patents, which Know-How
may be included in Confidential Items of Universal Display.

       

      1.20 “Universal Display
Improvements” means Improvements that are first conceived, developed or
reduced to practice during the Term by personnel of Universal Display without
any inventive contribution by personnel of Kyocera or the use of any Kyocera
Confidential Items.

       

      1.21 “Universal Display
Patents” means all Existing Universal Display Patents.

       

      1.22 “Universal Display
Technology” means the Universal Display Patents and the Universal Display
Know-How.

       

      1.23 “Valid Claim” means a
claim of a Universal Display Patent, which claim has neither expired nor been
finally held unpatentable, invalid or unenforceable by a court or other
government agency of competent jurisdiction.

       

      1.24 “Effective Date” shall
have the meaning set forth in Article 11 below.

       

      
        
          Universal
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      1.25 License
Rights

       

      1.26 Grant of License to
Kyocera.  Subject to the remaining provisions of this Article
2, Universal Display hereby grants to Kyocera a worldwide, royalty-bearing,
non-exclusive and non-transferable (except in connection with a permitted
transfer or assignment of this Agreement as a whole) license, without rights to
sublicense, under the Universal Display Patents, and to use the Universal
Display Know-How, solely to manufacture (but not have manufactured), sell, offer
for sale, use, export, import and otherwise dispose of Licensed
Products.

       

      1.27 [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      1.28 Permitted
Sublicensees.  Kyocera shall be permitted to grant sublicenses
of the foregoing license rights under Sections 2.1 and 2.2 above solely to its
Permitted Sublicensees, provided that (a) each such sublicense shall be pursuant
to a written agreement between Kyocera and the Permitted Sublicensee, which
written agreement shall obligate the Permitted Sublicensee to abide by the scope
of license and other provisions of this Agreement that are applicable to
Permitted Sublicensees; (b) in addition to its other rights or remedies
hereunder, Universal Display shall be expressly identified in the written
sublicense agreement as a third-party beneficiary thereof, entitled to enforce
the scope of license and other applicable provisions of this Agreement directly
against the Permitted Sublicensee; (c) Kyocera shall identify the name and
business address of each such Permitted Sublicensee to Universal Display in
writing promptly following its entry into a written sublicense agreement with
the Permitted Sublicensee; and (d) Kyocera shall use its best efforts to cause
each Permitted Sublicensee abide by the scope of license and other applicable
provisions of this Agreement.  As used herein, “Permitted
Sublicensees” shall be limited to direct or indirect wholly-owned subsidiaries
of Kyocera or its parent corporation, which entities do not have, and are not
Affiliates of entities (other than Kyocera) that have, their own OLED
programs.  Such entities shall be Permitted Sublicensees only for so
long as they continue to satisfy the foregoing requirements.

       

      1.29 Non-Assert of Universal
Display Patents.  In addition to the licenses granted
hereabove, Universal Display agrees that it shall not assert, nor cause or
permit any of its Affiliates to assert, any Universal Display Patent against
Kyocera, its Affiliates, or their customers based solely on (1) Kyocera’s or its
Affiliates’ manufacture of any Licensed Products made prior to [The confidential
material contained herein has been omitted and has been separately filed with
the Commission.]; or (2) the past, present or future import, export, use,
operation, lease, offer to sell, sale or other disposition of any Licensed
Products made by Kyocera or its Affiliates prior to [The confidential material
contained herein has been omitted and has been separately filed with the
Commission.].  Universal Display further agrees that it shall not
assert, nor cause or permit any of its Affiliates to assert, any Universal
Display Patent against Kyocera, its Affiliates, or their customers based solely
on Kyocera’s or its Affiliates’ sale or other disposition or use of any Licensed
Product made after [The confidential material contained herein has been omitted
and has been separately filed with the Commission.], provided that Kyocera has
paid, or is committed to pay, a royalty to Universal Display hereunder on
account of such sale or other disposition.

       

      
        
          Universal
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      1.30 No Rights Respecting OLED
Chemicals.  Nothing in this Agreement shall be construed as
authorizing or otherwise permitting Kyocera, or any third party claiming through
Kyocera, to practice under any Universal Display Patents, or to use any
Universal Display Know-How, for purposes of manufacturing Phosphorescent
Materials or other OLED chemicals, or having Phosphorescent Materials or other
OLED chemicals manufactured for Kyocera or on Kyocera’s
behalf.  Kyocera shall not manufacture Licensed Products hereunder
using any Phosphorescent Materials or other OLED chemicals that Kyocera knows or
has reason to know are being made for or sold to Kyocera without appropriate
license rights having been obtained from Universal Display.

       

      1.31 No Rights Respecting OLED
Manufacturing Equipment.  Nothing in this Agreement shall be
construed as authorizing or otherwise permitting Kyocera, or any third party
claiming through Kyocera, to practice under any Universal Display Patents, or to
use any Universal Display Know-How, for purposes of selling to any third party,
or enabling its Affiliates or others to sell to any third party, any
manufacturing equipment or machinery used to produce an OLED (i.e., internal use
of such equipment or machinery within the scope of the license rights granted
above is permitted).

       

      1.32 Acknowledgement of
Derivative Rights.  Kyocera acknowledges that certain of the
Universal Display Patents and the Universal Display Know-How is licensed by
Universal Display from the Trustees of Princeton University (“Princeton”), the
University of Southern California (“USC”), the University
of Michigan (“Michigan”) and
Motorola, Inc. (“Motorola”), and,
therefore, that Kyocera’s license rights under this Agreement with respect to
such Universal Display Patents and Universal Display Know-How are subject to the
reserved rights of and obligations to such third parties under their license
agreements with Universal Display.  Kyocera further acknowledges that
the U.S. Government has certain reserved rights with respect to those Universal
Display Patents claiming inventions that were first conceived or reduced to
practice under contracts between the U.S. Government and Universal Display or
its licensors.  Universal Display hereby covenants to Kyocera that:
(a) Universal Display shall comply in all material respects with the terms of
its license agreements with such third-party licensors and its contracts with or
awards from the U.S. Government as in either case are relevant to Kyocera’s
exercise of license rights granted by Universal Display hereunder; and (b) no
additional consideration shall be owed by Kyocera to such third-party licensors
or the U.S. Government on account of Kyocera’s practice under the Universal
Display Patents or use of the Universal Display Know-How as contemplated
hereunder.  Nothing herein shall be construed as limiting or
restricting the reserved rights of or obligations to Universal Display’s
third-party licensors or the U.S. Government with respect to such Universal
Display Patents and Universal Display Know-How.  Upon Kyocera’s
request, Universal Display will provided Kyocera with copies (which may be
reasonably redacted by Universal Display to avoid disclosing confidential
information not relevant to this Agreement) of such of Universal Display’s
agreements with such third-party licensors and of the applicable portions its
relevant contracts with or awards from the U.S. Government.

       

      1.33 Reservation of
Rights.  Except for the license rights expressly granted to
Kyocera under this Article 2, all rights to practice under the Universal Display
Patents and to use the Universal Display Know-How are reserved unto Universal
Display and its licensors.  All rights

       

      
        
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      1.34 to
practice under any patents claiming Kyocera Improvements are reserved unto
Kyocera.  No implied rights or licenses to practice under any patents
or to utilize any unpatented inventions, Know-How or technical information of
either party are granted to the other party hereunder.

       

      Article
2 Technical
Assistance and Improvements

       

      2.1 Acknowledgement of Previous
Technical Assistance.  Both parties acknowledge and agree that
Universal Display has been providing Kyocera with technical assistance to enable
Kyocera to understand and utilize the Universal Display Technology since the
parties entered into an Evaluation Agreement effective as of March 1,
2006.  Such technical assistance has taken the form of [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      2.2 Commitment to Provide Future
Technical Assistance.  To the extent it has the right to do so,
Universal Display shall continue to provide Kyocera with such technical
assistance as Universal Display determines, or as Kyocera reasonably indicates,
would be useful in connection with Kyocera’s design, manufacture and/or sale of
Licensed Products as permitted hereunder.  This technical assistance
shall continue in such manner as it has previously been provided by Universal
Display, as described in greater detail in Section 3.1 above, and shall also
include facility visits as described in greater detail in Section 3.3
below.

       

      2.3 Facility
Visits.  Upon Kyocera’s request, Universal Display shall permit
a reasonable number of personnel of Kyocera to visit and receive reasonable
technical assistance at Universal Display’s OLED facility in Ewing, New
Jersey.  The scope and frequency of such activities shall be as
mutually determined by the parties in good faith.  All Kyocera
personnel visiting Universal Display’s facility in Ewing, New Jersey shall be
required to abide by Universal Display’s then-standard policies for
visitors.

       

      2.4 Ownership of
Improvements.  As between the parties, all Universal Display
Improvements, including any patents thereon or copyrights therein, shall be
owned solely by Universal Display, and all Kyocera Improvements, including any
patents thereon or copyrights therein, shall be owned solely by
Kyocera.  As between the parties, all Joint Improvements, including
any patents thereon or copyrights therein, shall be owned jointly by both
parties, with neither party having any obligation of accounting to the other in
relation to its practice, use or other exploitation thereof.  Each
party shall promptly disclose to the other, in writing, any Joint Improvement
with respect to which such party desires to file a patent application, but
otherwise no disclosure of Joint Improvements is required.  Promptly
following any such disclosure, the parties shall in good faith discuss and agree
upon procedures respecting the filing and prosecution of such patent application
and the maintenance and enforcement of any patents issued thereon.

       

      2.5 Further
Assurances.  Upon either party’s written request, the other
party shall execute and deliver to the requesting party all instruments and
other documents relating to Joint Improvements, and shall take such other
actions as may be necessary or reasonably requested, so that the requesting
party may secure, protect or enforce its rights therein.

       

      
        
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      2.6 Export
Control.  Each party shall comply with all obligations under
applicable law to control access to technical data under the U.S. Export Laws
and Regulations, or any foreign counterparts thereof, and shall adhere to such
laws and regulations in handling and disclosing any technical information
provided or received by it under this Agreement.

       

      Article
3 Patent
Matters, Attribution and Samples

       

      3.1 Patent
Validity.  To the extent permitted by law, Kyocera shall not,
and shall use its best efforts to ensure that its Affiliates do not, challenge
or oppose, or assist others in challenging or opposing, the issuance, validity
or enforceability of any of the Universal Display Patents.  Should
Kyocera or any of its Affiliates so challenge or oppose, or assist others in
challenging or opposing, any of the Universal Display Patents, Kyocera shall
reimburse Universal Display for all attorneys’ fees, costs and out-of-pocket
expenses incurred by Universal Display in resisting and responding to such
challenge or opposition in the event the challenge or opposition is fully or
substantially unsuccessful.  The foregoing shall be in addition to,
and not in lieu of, any other remedies that may be available, at law or equity,
including an action for the recovery of damages.

       

      3.2 Patent
Marking.  Upon Universal Display’s request and without
incurring any excessive additional expense, Kyocera shall apply or cause to be
applied to all Licensed Products as sold or otherwise distributed by Kyocera, or
at Kyocera’s option to the packaging for such Licensed Products, [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.] in order to fully protect their rights and interests
therein under the laws of the countries in which such Licensed Products are or
are likely to be marketed, sold or used.

       

      3.3 Attribution.  With
respect to any Licensed Product that would, but for the license granted
hereunder, infringe the [The confidential material contained herein has been
omitted and has been separately filed with the Commission.] patents being
sublicensed to Kyocera, Kyocera shall, upon Universal Display’s request and
without incurring any excessive additional expense, ensure that all such
Licensed Products are marked on an exposed surface with such of the following
notices as are requested in writing [The confidential material contained herein
has been omitted and has been separately filed with the
Commission.]  When such a notice would not be reasonably and
customarily applied to the Licensed Products, it shall instead appear
prominently on the packaging for the Licensed Products as sold or otherwise
distributed by Kyocera, or in data sheets or other literature accompanying such
Licensed Products.

       

      3.4 Non-Use of Certain
Names.  Kyocera shall not use the names of Princeton, USC or
Michigan in connection with any products, promotion or advertising without the
prior consent of Princeton, USC or Michigan, as applicable, except to the extent
reasonably required by law.  Notwithstanding the foregoing sentence,
Kyocera may state that its license rights hereunder are derivative of rights
granted by Princeton, USC and Michigan to Universal Display under the license
agreement among them.

       

      3.5 Samples.  Upon
Universal Display’s request [The confidential material contained herein has been
omitted and has been separately filed with the Commission.], Kyocera
shall

       

      
        
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      3.6 supply
Universal Display with a minimum of two (2) samples of each Licensed Product
that Kyocera or its Affiliates offer for sale to third
parties.  Universal Display shall limit its requests for such samples
to a reasonable number of Licensed Products and Kyocera shall supply such
samples promptly following the Licensed Product being released for public
sale.  Universal Display agrees to use such samples only (a) to verify
compliance by Kyocera with the terms of the license grant hereunder, and (b) for
promotional purposes such as in displays at shareholder meetings, industry
conferences or other similar venues.

       

      Article
4 Consideration

       

      4.1 Upfront
Fees.  In partial consideration of the license rights granted
and technical assistance provided and to be provided by Universal Display
hereunder, Kyocera shall pay to Universal Display the upfront fees specified in
Exhibit B
hereto.  Said upfront fees are due and payable on the date(s)
specified in Exhibit
B hereto.  All such fees are non-refundable and shall be in
addition to any running royalties payable hereunder, except as may otherwise be
expressly stated in Exhibit
B.

       

      4.2 Royalties.  In
further consideration of the license rights granted by Universal Display
hereunder, Kyocera shall pay to Universal Display running royalties at the rates
specified in Exhibit
B hereto on account of Net Sales Revenue from Kyocera’s and its
Affiliates’ sales or other disposition or usage of Licensed Products, as set
forth in subsections 5.2.1 through 5.2.3 below.

       

      4.2.1 [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      4.2.2 [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      4.2.3 [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      4.2.4 Both
parties acknowledge and agree that the royalty rates and the methods by which
they are to be calculated and paid have been determined through arms length
negotiations between the parties and that such rates and methods are reasonable
and appropriate notwithstanding whether and to what extent any of the Universal
Display Patents have been issued, granted, allowed or registered, or have
expired, in any particular country in which Licensed Products are made, sold or
used.

       

      4.2.5 No
multiple royalties shall be due because any Licensed Product, or its
manufacture, sale, other disposition or usage, is or may be covered by more than
one Universal Display Patent licensed to Kyocera hereunder.

       

      4.2.6 [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      
        
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      4.2.7 Royalty
Reports.  Within sixty (60) days following the end of each [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.] during the Term (and if the Term ends in the middle
of a [The confidential material contained herein has been omitted and has been
separately filed with the Commission.], within sixty (60) days following the end
of the Term), Kyocera shall submit to Universal Display a written report, in
English, that includes the following information (each, a “Royalty Report”): (a)
a description of all Licensed Products sold or otherwise disposed of or used
during such [The confidential material contained herein has been omitted and has
been separately filed with the Commission.] by Kyocera or its Affiliates; (b)
gross amounts invoiced or received on account of Kyocera’s or its Affiliates’
sales, other disposition or usage of such Licensed Products; (c) Kyocera’s
reasonably detailed calculation of the royalties due and owing to Universal
Display on account of such sales, other disposition or usage of Licensed
Products; and (d) such other information as Universal Display may reasonably
request of Kyocera which is pertinent to a royalty accounting
hereunder.  [The confidential material contained herein has been
omitted and has been separately filed with the Commission.]

       

      4.3 Payment of
Royalties.  Within sixty (60) days following the end of each
[The confidential material contained herein has been omitted and has been
separately filed with the Commission.] during the Term (and if the Term ends in
the middle of a [The confidential material contained herein has been omitted and
has been separately filed with the Commission.], within sixty (60) days
following the end of the Term), Kyocera shall pay directly to Universal Display
the royalties due and payable with respect to Licensed Products sold or
otherwise disposed of or used during such [The confidential material contained
herein has been omitted and has been separately filed with the Commission.] by
Kyocera or its Affiliates.  [The confidential material contained
herein has been omitted and has been separately filed with the
Commission.]

       

      4.4 [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      4.5 [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      Article
5 Payment
Terms; Audit Rights

       

      5.1 Payments.  All
amounts due to Universal Display hereunder shall be paid in U.S. Dollars by wire
transfer to a bank designated by Universal Display in writing, or by such other
means as the parties may agree in writing.  Universal Display’s
current wire instructions are as follows:

       

      [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

      

      Each
payment shall be fully earned when due and nonrefundable once
made.  All payments due hereunder shall be made without set-off,
deduction or credit for any amount owed (or alleged to be owed) by Universal
Display to Kyocera or any of its Affiliates.  Without limiting its
other rights or remedies on account of any late payment, Universal Display may
require Kyocera to pay

       

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
10

          
            

          

        

        
          
          

        

      

      interest
on any late payments.  [The confidential material contained herein has
been omitted and has been separately filed with the Commission.]

       

      5.2 Payment Authorization and
Associated Charges.  Kyocera shall secure all authorizations
required for payment of all amounts due to Universal Display hereunder and shall
bear all transfer fees, taxes and other charges associated
therewith.  If Kyocera believes that any income taxes imposed by any
national, provincial or local government of relevant countries on amount payable
to Universal Display hereunder will need to be withheld, Kyocera shall provide
Universal Display with prompt written notice thereof.  Thereupon, the
parties will cooperate in good faith and use their reasonable best efforts to
promptly file for and obtain appropriate governmental exemptions that would
eliminate the requirement for Kyocera to withhold such taxes.  If,
notwithstanding these efforts, tax withholding is nonetheless required, [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.].

       

      5.3 Currency Conversion and
Restriction.  All royalties due hereunder based on Licensed
Products sold or otherwise disposed of or used as consumable goods by Kyocera or
its Affiliates outside of the United States shall be payable in U.S. Dollars at
the rate of exchange for the currency of the country in which such sales or
usage occurs, [The confidential material contained herein has been omitted and
has been separately filed with the Commission.] in Japan quoted by an authorized
foreign exchange bank on the last business day of the [The confidential material
contained herein has been omitted and has been separately filed with the
Commission.] for which payment is being made.  All royalties shall be
paid to Universal Display without deduction of currency exchange fees or other
similar amounts.  If at any time the legal restrictions of a country
outside of the United States prevent Kyocera from paying Universal Display any
amounts due hereunder, Universal Display may direct Kyocera to make such payment
to Universal Display’s account in a bank or other depository of such
country.

       

      5.4 Records; Audit and
Inspection.  Kyocera shall, and shall require its Affiliates
to, keep accurate and complete financial and technical records with respect to
the Licensed Products they manufacture, sell or use for three (3) years
thereafter, as well as with respect to the royalties payable to Universal
Display hereunder.  During the Term and for two (2) years thereafter,
an independent certified public accountant selected by Universal Display and
approved by Kyocera (such approval not to be unreasonably withheld), together
with such technical support staff as such accountant reasonably deems necessary
and approved by Kyocera (such approval not to be unreasonably withheld), shall
have the right to audit such records and inspect such of Kyocera’s and its
Affiliates’ materials, equipment and manufacturing processes as are reasonably
necessary in order to verify Kyocera’s payment of all royalties due
hereunder.  Universal Display shall give reasonable advance notice of
any such audit or inspection to Kyocera, and such audit or inspection shall be
conducted during Kyocera’s or its Affiliates’ normal business hours and in a
manner that does not cause unreasonable disruption to Kyocera’s or its
Affiliates’ conduct of their business.  The results of any such audit
or inspection shall be deemed a Confidential Item of Kyocera and shall not be
disclosed by Universal Display except as may be necessary for Universal Display
to enforce its rights hereunder.  If the audit or inspection reveals
that Kyocera has underpaid any royalties due to Universal Display, Kyocera shall
immediately pay to Universal Display all unpaid royalties, plus interest on the
unpaid amounts from the date

       

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
11

          
            

          

        

        
          
          

        

      

      5.5 payment
was initially due.  [The confidential material contained herein has
been omitted and has been separately filed with the
Commission.]  Universal Display shall be responsible for paying the
fees and expenses charged by the accountant for conducting any audit or
inspection hereunder; provided, however, that if the unpaid royalties exceed
[The confidential material contained herein has been omitted and has been
separately filed with the Commission.] of the total royalties that should have
been paid by Kyocera during the audited period, Kyocera shall promptly reimburse
Universal Display for the reasonable fees and expenses charged by such
accountant.

       

      Article
6 Confidentiality
and Publicity

       

      6.1 Obligations of
Confidentiality and Non-Use.  Each party (the “Recipient”) shall
handle and maintain all Confidential Items of the other party in accordance with
the following terms and conditions:

       

      6.1.1 Recipient
shall not publish, disclose or otherwise disseminate any Confidential Items of
the other party, except to such of Recipient’s employees and agents (and, in the
case of Kyocera, to the employees and agents of its Affiliates) who have a “need
to know” it to accomplish the purposes of this Agreement, and then only if such
persons previously have had an obligation to handle and maintain such
Confidential Items in accordance with the provisions of this Agreement or
provisions substantially similar thereto.  Disclosure or dissemination
of Confidential Items of the other party to additional persons or entities
requires the prior written approval of such other party.

       

      6.1.2 Recipient
shall maintain all Confidential Items of the other party in a safe and secure
place with reasonable safeguards to prevent any unauthorized access to or
disclosure of such Confidential Items.  As used herein, “reasonable
safeguards” means all safeguards that a reasonable person would take to protect
the Confidential Item in question, which safeguards shall be no less than the
safeguards Recipient takes to protect its own confidential or proprietary items
of a similar nature.

       

      6.1.3 Recipient
may copy Confidential Items of the other party only as is reasonably necessary
for Recipient to accomplish the purposes of this Agreement.  Copying
or reproduction of Confidential Items except as permitted herein is strictly
prohibited.

       

      6.1.4 Recipient
shall not utilize or exploit any Confidential Items of the other party, or
permit or assist others to utilize or exploit such Confidential Items, except as
is reasonably necessary to accomplish the purposes of this
Agreement.  Reverse engineering, disassembly or other methods designed
to derive the composition, structure, method of manufacture or purity of
Confidential Items is strictly prohibited.

       

      6.1.5 Recipient
shall not publish or otherwise disclose to third parties, including by
referencing or including in any patent application, any test results or other
information or data regarding Recipient’s evaluation or use of any Confidential
Items of the other party without the other party’s prior written
consent.

       

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
12

          
            

          

        

        
          
          

        

      

      6.1.6 Promptly
upon learning of any unauthorized use or disclosure of any Confidential Item of
the other party, Recipient shall provide the other party with written notice
thereof and take such other steps as are reasonably requested by the other party
in order to limit the effects of such use or disclosure and/or prevent any
further unauthorized use or disclosure of such Confidential Item.

       

      6.1.7 Promptly
upon the expiration or sooner termination of this Agreement, Recipient shall
return to the other party, destroy and/or delete from Recipient’s records and
computer systems all Confidential Items of the other party, including any copies
or portions thereof, in Recipient’s possession or control; provided, however,
that Recipient may retain one copy of documents incorporating Confidential Items
for archival purposes only if permitted by the other party.  Within
thirty (30) days following the other party’s written request, Recipient shall
provide the other party with a certificate of Recipient’s compliance with the
foregoing requirements.

       

      6.2 Definition of Confidential
Items. As used
herein, “Confidential
Items” of a party are all trade secret, proprietary and confidential
information and materials, in written, oral or electronic form, relating to such
party’s or its licensors’, suppliers’ or business partners’ technologies,
compounds, research programs, operations and/or financial or business condition
(including, without limitation, know-how, data, drawings, designs,
specifications, formulations, processes, methods, equipment, software and
pricing information) that is (a) disclosed in writing and marked as
“Confidential”, “Proprietary” or with similar words at the time of disclosure,
or (b) orally disclosed and identified as confidential or proprietary at the
time of disclosure and confirmed as such in writing within thirty (30) days
thereafter.  Notwithstanding the foregoing, “Confidential Items” of a
party shall not include any information or materials that:

       

      6.2.1 are
approved by such party in writing for release by Recipient without
restriction;

       

      6.2.2 Recipient
can demonstrate by written records were previously known to Recipient other than
through a prior disclosure by such party or any third party with an obligation
of confidentiality to such party;

       

      6.2.3 are
publicly known as of the date of this Agreement, or become public knowledge
subsequent thereto, through no act or omission of Recipient or any third party
receiving such items from or through Recipient;

       

      6.2.4 are
obtained by Recipient in good faith from a third party without the violation of
any obligation of confidentiality to such party by either Recipient or the third
party; or

       

      6.2.5 are
independently developed by or on behalf of Recipient without the benefit of such
party’s Confidential Items, as shown by competent written records.

       

      6.3 Disclosure Required by
Law.  This Agreement shall not restrict Recipient from
disclosing any Confidential Items of the other party to the extent required by
applicable law, or

       

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
13

          
            

          

        

        
          
          

        

      

      6.4 by the
order of any court or government agency; provided, however, that Recipient shall
afford the other party prompt notice of such law or order, so that the other
party may interpose an objection to such disclosure or take whatever other
actions the other party deems appropriate to protect such Confidential Items,
and provided further that Recipient shall use all reasonable efforts to limit
such disclosure to only those Confidential Items that are required to be
disclosed and to ensure that the person or entity to whom such Confidential
Items are disclosed agrees to keep them confidential.

       

      6.5 Responsibility for
Personnel.  Recipient shall be responsible for the acts or
omissions of any persons or entities receiving Confidential Items of the other
party from or through Recipient to the extent such acts or omissions, if
performed or not performed by Recipient, would constitute violations of this
Agreement by Recipient.

       

      6.6 Universal Display’s
Licensors.  Notwithstanding the foregoing, Universal Display
shall have the right to provide an unredacted copy of this Agreement, along with
copies of all Royalty Reports, to each of Princeton, USC, Michigan and Motorola;
provided that in such case Universal Display shall cause such third-party
licensors to have first agreed in writing to handle and maintain such items in
accordance with the provisions of this Article 7, or provisions substantially
similar thereto, and deliver one copy of such written agreement to
Kyocera.

       

      6.7 Confidentiality of this
Agreement.  The terms of this Agreement and its existence shall
be deemed Confidential Items of each party and treated as such by both parties
unless otherwise stipulated in this Agreement.  Notwithstanding the
foregoing sentence, either party may disclose in its public filings such of the
terms of this Agreement as are reasonably required for such party to comply with
applicable securities laws and regulations, including, without limitation, by
filing an appropriately redacted copy of this Agreement in connection
therewith.  In addition, either party may issue a press release or
other public announcement describing the general nature of this Agreement upon
prior agreement, or the parties may agree to issue such a release or
announcement jointly.  However, it is expressly understood and agreed
that no such release or public disclosure shall disclose any information about
Kyocera’s expected or intended product launch strategy without Kyocera’s prior
written consent.  Subject to the foregoing provisions of this
paragraph, any such public disclosure of the specific financial terms or other
provisions of this Agreement, or any other information regarding the
relationship between the parties hereunder, shall require the other party’s
prior written consent.

       

      6.8 [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      Article
7 Representations
and Warranties; Disclaimers and Limitations of Liability

       

      7.1 Warranties by Both
Parties.  Each party represents and warrants to the other that
such party has the right, power and authority to enter into this Agreement and
to perform its obligations hereunder, and that such performance will not violate
any other agreement or understanding by which such party is bound.

       

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
14

          
            

          

        

        
          
          

        

      

      7.2 Further Warranty by
Universal Display.  Universal Display additionally represents
and warrants to Kyocera that Universal Display owns or has sufficient rights in
the Universal Display Technology to grant the licenses granted to Kyocera
hereunder.  [The confidential material contained herein has been
omitted and has been separately filed with the Commission.]

       

      7.3 Further Warranty by
Kyocera.  Kyocera additionally represents and warrants to Universal
Display that [The confidential material contained herein has been omitted
and has been separately filed with the Commission.] the pricing attributable
OLED Module components is calculated in a manner similar to that used to
calculate the pricing for non-OLED Module components.

       

      7.4 Disclaimer of Additional
Warranties.  ALL OTHER WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF NON-INFRINGEMENT,
VALIDITY, QUALITY, PERFORMANCE, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, ARE HEREBY DISCLAIMED BY EACH PARTY.  In particular,
Universal Display makes no representations or warranties that Kyocera will be
able to manufacture, sell or use any Licensed Products without obtaining
additional license rights from third parties, and Kyocera shall be solely
responsible for determining the rights it is required to obtain and for
obtaining all such rights.

       

      7.5 Required Disclaimer of
Princeton, USC and Michigan.  PRINCETON, USC AND MICHIGAN MAKE
NO REPRESENTATIONS AND WARRANTIES AS TO THE PATENTABILITY AND/OR DISCOVERIES
INVOLVED IN ANY OF THE UNIVERSAL DISPLAY PATENTS LICENSED
HEREUNDER.  PRINCETON, USC AND MICHIGAN MAKE NO REPRESENTATION AS TO
PATENTS NOW HELD OR WHICH WILL BE HELD BY OTHERS IN ANY FIELD AND/OR FOR ANY
PARTICULAR PURPOSE.  PRINCETON, USC AND MICHIGAN MAKE NO EXPRESS OR
IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.

       

      7.6 Limitation on Certain
Damages.  IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE
OTHER, WHETHER AS A RESULT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR
OTHERWISE, FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL
DAMAGES ARISING UNDER OR IN CONNECTION WITH A BREACH OR ALLEGED BREACH OF THIS
AGREEMENT.  The foregoing limitation shall not limit either party’s
liability to the other party for: (a) any claims of bodily injury or damage to
tangible property resulting from such party’s gross negligence or willful
misconduct; (b) a breach of the provisions of Article 10.11 respecting the
business continuity of Kyocera; (c) any unauthorized use of the other party’s
materials or technology; (d) any infringement of the other party’s patents; or
(e) any breach of the provisions of Article 7 respecting the other party’s
Confidential Items.

       

      7.7 Essential Part of the
Bargain.  The parties acknowledge that the disclaimers and
limitations of liability set forth in this Article 8 reflect a deliberate and
bargained for allocation of risks between them and are intended to be
independent of any exclusive remedies available under this Agreement, including
any failure of such a remedy to achieve its essential purpose.

       

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
15

          
            

          

        

        
          
          

        

      

      7.8 Term and
Termination

       

      7.9 Term.  The
term of this Agreement (the “Term”) shall commence
on the Effective Date and shall continue, unless terminated sooner as permitted
hereunder, until the latter of the date of expiration of the last to expire of
the Universal Display Patents.  Unless otherwise expressly agreed in
writing by the parties, all licenses granted under this Agreement shall expire
immediately upon any termination of this Agreement.

       

      7.10 Termination for
Breach.  Either party may terminate this Agreement on written
notice to the other party if the other party materially breaches any of its
obligations under this Agreement and fails to cure such breach within a
reasonable period, not more than sixty (60) days, following written notice
thereof by the terminating party.  Both parties agree to consult in
good faith with each other prior to issuing any such notice of termination in
order to determine whether there is a course of action beyond termination that
is acceptable to both parties.

       

      7.11 Termination for Challenge of
Patents.  Universal Display may [The confidential material
contained herein has been omitted and has been separately filed with the
Commission.] on written notice if Kyocera or any of its Affiliates asserts or
assists another in asserting, before any court, patent office or other
governmental agency, that any of the Universal Display Patents are invalid or
unenforceable, or should not be issued, granted, allowed or registered, and such
action or assistance is not fully terminated within sixty (60) days following
written notice thereof from Universal Display to Kyocera.  [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

       

      7.12 Other
Termination.  Either party may terminate this Agreement on
written notice to the other party if the other party permanently ceases
conducting business in the normal course, becomes insolvent or is adjudicated
bankrupt, makes a general assignment for the benefit of its creditors, admits in
writing its inability to pay its debts as they become due, permits the
appointment of a receiver for its business or assets, or initiates or becomes
the subject of any bankruptcy or insolvency proceedings which proceedings, if
initiated involuntarily, are not dismissed with ninety (90) days
thereafter.

       

      7.13 Survival.  The
following provisions of this Agreement shall survive the expiration or earlier
termination of this Agreement:  (a) Sections 2.2-2.5, 3.3-3.5 and 4.1,
and Articles 6 through 10; (b) any payment or reporting obligations of Kyocera
respecting the sale or other disposition or usage of Licensed Products occurring
prior to or in connection with such expiration or termination; and (c) any other
provisions necessary to interpret the respective rights and obligations of the
parties hereunder.  Any termination of this Agreement shall be in
addition to, and not in lieu of, any other remedies that may be available, at
law or equity, including an action for the recovery of damages.

       

      Article
8 Miscellaneous

       

      8.1 Independent
Contractors.  This Agreement is not intended by the parties to
constitute, create, give effect to, or otherwise recognize a joint venture,
partnership, or formal business organization of any kind.  Each party
hereto shall act as an independent contractor, and

       

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
16

          
            

          

        

        
          
          

        

      

      8.2 neither
shall act as an agent of the other for any purpose.  Neither party has
the authority to assume or create any obligation, express or implied, on behalf
of the other.

       

      8.3 Force
Majeure.  Neither party shall be in breach of this Agreement
for any failure of performance caused by an event beyond its reasonable control
and not due to its fault or negligence, but excluding any failure to pay
monetary amounts due and owing.  In the event that such a force
majeure event occurs, the party unable to perform shall promptly notify the
other party of such non-performance and its expected duration.  In
addition, such party shall in good faith maintain such partial performance of
this Agreement as is reasonably possible, shall use all reasonable efforts to
overcome the cause of nonperformance and shall resume full performance as soon
as is reasonably possible.

       

      8.4 Notices.  Any
disclosures or notices required or permitted hereunder shall be in writing and
shall be deemed effectively given upon receipt of such disclosures or notices by
the receiving party.  Such disclosure or notices shall be given by
personal delivery, certified mail with postage prepaid and return receipt
requested, or prepaid delivery using a recognized private courier, to each party
at its address set forth below.  Either party may change its address
for such notices at any time by means of a notice given in the manner provided
in this paragraph.

       

      
        All
Royalty Reports and any other financial notices, to:

         

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Universal
      Display Corporation

                                      	 
      	
                                        Kyocera
      Corporation

                                      
	
                                        375
      Phillips Boulevard

                                      	 
      	
                                        Head
      Office

                                      
	
                                        Ewing,
      New Jersey  08618

                                      	 
      	
                                        6
      Takeda Tobadono-cho

                                      
	 
      	 
      	
                                        Fushimi-ku,
      Kyoto 612-8501,
Japan

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

         

        [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

         

      

      All other
notices and communications:

      

      [same as
above]                                                                                     [same
as above]

       

      [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

      

      8.5 Non-Assignment.  This
Agreement and the rights and obligations of the parties hereunder shall not be
assigned or transferred by either party without the prior written consent of the
other party, except that either party may assign or transfer this Agreement, in
its entirety and on written notice to the other, to a successor in interest to
all or substantially all of such party’s business to which this Agreement
relates, whether by merger, acquisition or otherwise.  Notwithstanding
the foregoing, Kyocera may not assign or transfer this Agreement to a third
party with whom Universal Display is then-engaged in litigation or other formal
adversarial or dispute resolution proceedings respecting the Universal Display
Patents.  Should Kyocera assign or transfer this Agreement, whether by
merger, acquisition or otherwise, to a third party with an existing OLED
business, or should Kyocera acquire the existing OLED business of any third
party, the license rights granted to Kyocera under this Agreement shall not
extend to any current or future products of such third party’s OLED business
unless expressly agreed to by Universal

       

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
17

          
            

          

        

        
          
          

        

      

      8.6 Display
in writing.  Moreover, should Universal Display have already entered
into a similar license agreement with the third party at the time of such
assignment, transfer or acquisition, there shall be no reduction of the payment
or other obligations of Kyocera under this Agreement as they pertain to products
of Kyocera’s OLED business, or of such third party under its similar license
agreement as they pertain to products of the third party’s OLED business, unless
expressly agreed to by Universal Display in writing.  Nothing herein
shall confer any rights upon any person other than the parties hereto and their
respective successors and permitted assigns.

       

      8.7 Equitable
Relief.  In the event of a party’s actual or reasonably
anticipated infringement of the other party’s patents, unauthorized use of the
other party’s proprietary materials or information; or breach of the provisions
of Article 7 respecting the other party’s Confidential Items, the other party
may seek to obtain such injunctions, order and decrees as may be necessary to
restrain such activity, without the necessity of proving actual damages and
without posting any bond or other security.  Such injunctive relief
shall be in addition to any other rights or remedies available to the other
party under this Agreement, at law or in equity.

       

      8.8 Choice of
Law.  This Agreement shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New Jersey, U.S.A.,
without respect to its rules on the conflict of laws.

       

      8.9 Severability.  In
the event that any term of this Agreement is held to be invalid, illegal, or
unenforceable, such invalidity, illegality, or unenforceability shall not affect
any other portion of this Agreement, and there shall be deemed substituted for
such term other term(s) that are permitted by applicable law and that will most
fully realize the intent of the parties as expressed in this
Agreement.

       

      8.10 No
Waivers.  The failure of either party to enforce, or any delay
in enforcing, any right, power or remedy that such party may have under this
Agreement shall not constitute a waiver of any such right, power or remedy, or
release the other party from any obligations under this Agreement, except by a
written document signed by the party against whom such waiver or release is
sought to be enforced.

       

      8.11 Entire Agreement;
Amendments.  This Agreement constitutes the entire
understanding and agreement of the parties respecting the subject matter hereof
and supersedes any and all prior agreements, arrangements or understandings
between the parties, whether written or oral, relating thereto.  This
Agreement may not be amended or supplemented in any way except by a written
document signed by both parties.

       

      8.12 Counterparts.  This
Agreement may be executed by the parties hereto in separate counterparts, each
of shall be deemed an original, but all of which together shall constitute one
and the same instrument.

       

      8.13 Business
Continuity.  In order to facilitate Kyocera’s business
continuity, Universal Display shall not assign, transfer or otherwise dispose of
its interest in any Universal Display Patents licensed hereunder, even by
merger, acquisition or otherwise, without first obtaining

       

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
18

          
            

          

        

        
          
          

        

      

      8.14 from the
assignee, transferee or other person or entity obtaining such interest, a
written acknowledgment of the obligations of Universal Display and rights of
Kyocera under this Agreement, and a written agreement to assume and abide by the
terms and conditions of this Agreement.

       

      Article
9 Effective
Date

       

      Except
for the provisions of this Article 11, this Agreement shall become effective
only when Kyocera gives a written notice to Universal Display on or before
December 31, 2008, [The confidential material contained herein has been omitted
and has been separately filed with the Commission.]

       

      IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
their duly authorized representatives:

      

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    	 Kyocera
      Corporation    	 	 Universal Display
      Corporation
	 	 	 
	 	 	 
	
                                                                            By:             /s/ Yasushi Matsumura

                                                                          	 
      	
                                                                            By:           /s/ Steven V. Abramson

                                                                          
	 
      	 
      	 
      
	
                                                                            Name:       Yasushi Matsumura

                                                                          	 
      	
                                                                            Name:      Steven V. Abramson

                                                                          
	 
      	 
      	 
      
	
                                                                            Title:          Executive Officer

                                                                          	 
      	
                                                                            Title:        President

                                                                          
	
                                                                                              
      General Manager, Corporate Display Group

                                                                          	 
      	 
      
	 
      	 
      	 
      
	
                                                                            Date:          July 23, 2008

                                                                          	 
      	
                                                                            Date:        July 28, 2008

                                                                          
	 
      	 
      	 
      

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
19

          
            

          

        

        
          
          

        

      

      Exhibit
A

      

      Universal
Display Patents

      

      

      [Separately
attached hereto.]

      

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
20

          
            

          

        

        
          
          

        

      

      Exhibit
B

      

      Fees
and Royalty Rates

      

      

      Upfront
Fee:  [The confidential material contained herein has been
omitted and has been separately filed with the Commission.]

      

      The
Upfront Fee shall be paid to Universal Display within thirty (30) days following
the Effective Date of the Agreement.

      

      [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

      

      Running Royalty
Rate:

      

      [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

      
        
          Universal
Display/Kyocera Confidential

        

        
          Page
21ex10_3.htm

     

    
      

      

    

    
 

    Exhibit
10.3

    

    COMMERCIAL
OLED MATERIAL SUPPLY AGREEMENT

    

    THIS
COMMERCIAL OLED MATERIAL SUPPLY AGREEMENT (this “Agreement”) is
entered into by and between Kyocera Corporation, a Japanese corporation with a
place of business at 6 Takeda Tobadono-Cho, Fushimi-ku, Kyoto 612-8501, Japan
(“Kyocera”),
and Universal Display Corporation, a Pennsylvania corporation with a place of
business at 375 Phillips Blvd, Ewing, New Jersey 08618, U.S.A. (“Universal
Display”).

     

     

    BACKGROUND

     

    WHEREAS,
Universal Display makes and sells certain materials for use in organic light
emitting devices; and

     

    WHEREAS,
Kyocera desires to purchase these materials from Universal Display on the terms
and conditions set forth herein; and

     

    WHEREAS,
Kyocera desires to have an option to make this Agreement effective on certain
conditions set forth herein.

     

    NOW,
THEREFORE, intending to be legally bound, Kyocera and Universal Display agree as
follows:

     

    Article
1 Terms
of Sale; Orders and Forecasts

     

    1.1 General.  Universal
Display will sell to Kyocera, and Kyocera will purchase from Universal Display,
directly or through its Affiliates, such of the OLED materials currently offered
for commercial sale by Universal Display
and specified on Exhibit A hereto (the
“Products”) as
Kyocera may order from time to time.  Exhibit A shall be
updated by the parties from time to time as Kyocera desires other OLED materials
that Universal Display is offering for commercial sale, or as Universal Display
ceases offering to sell certain of the OLED materials currently being sold to
Kyocera hereunder.  Universal Display shall provide Kyocera with at
least six (6) months’ prior written notice of its intention to discontinue
offering for commercial sale any OLED material currently being sold to Kyocera
hereunder.

     

    1.2 No Additional
Terms.  Unless otherwise expressly agreed to in writing, Universal
Display’s sale and Kyocera’s purchase of all Products hereunder shall be solely
on the terms and conditions set forth herein.  Each party accepts
these terms and conditions and no inconsistent or additional terms or conditions
of any purchase order, acceptance, shipping instructions or other document
submitted by either party shall apply other than those specified in Section 1.3
below.  All such other terms and conditions are hereby rejected and no
separate notice of such rejection need be given by either party.  The
terms and conditions of this Agreement shall apply to the sale and purchase of
Products by Kyocera Affiliates; provided, however, that Kyocera, as the signing
party to this Agreement, shall remain responsible for its Affiliates’ compliance
with such terms and conditions.

     

    
      
        
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    1.3 Purchase
Orders.  Kyocera or its Affiliates shall place written orders
with Universal Display for the Products (“Orders”) in advance
of the requested shipment date, but with the agreed
lead-time.  Initial lead-time from Order to shipment shall be as
follows:

     

    [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

     

    All
Orders shall include (a) the date of the Order, (b) the identity and quantity of
each Product ordered, (c) the requested date of shipment, and (d) the shipping
destination.  Universal Display shall notify Kyocera in writing of its
acceptance of each Order within five (5) business days of receipt of the Order;
such acceptance not to be unreasonably withheld.  For clarification,
Universal Display shall not be bound to accept any Order without the requisite
lead time; however, Universal Display shall in any event use its commercially
reasonable efforts to meet the requested date of shipment under such
circumstances.

     

    1.4 Forecasts.  Kyocera
will, at its option, provide Universal Display, in writing, with rolling
forecasts, on a calendar quarterly basis by the end of each quarter, of its
expected requirements for each Product during the next [The confidential
material contained herein has been omitted and has been separately filed with
the Commission.]. Kyocera’s rolling forecasts shall be used by Universal
Display for planning purposes only, and do not represent binding
commitments by Kyocera to purchase the quantities stated
therein.  Only if Kyocera issues Orders for the Products and Universal
Display accepts such Orders shall Universal Display be authorized and bound to
deliver, and Kyocera be bound to purchase, the quantities stated in such
Orders.

     

    1.5 Title and Risk of
Loss.  Unless otherwise agreed, all Products shall be sold [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.], the location of Universal Display’s Ewing, New
Jersey facility.  Kyocera shall be
responsible for all associated shipping and insurance charges, brokers’
fees and the like, and Kyocera may designate its preferred freight forwarder in
the United States to handle all Product shipments.  In the absence of
such designation, Universal Display will arrange
for a freight forwarder to handle the shipment on Kyocera’s behalf and
at Kyocera’s sole expense.

     

    1.6 Shipping
Dates.  Universal Display will use commercially reasonable
efforts to meet Kyocera’s requests for specific shipment dates.  Absent
good cause, Kyocera shall in good faith accept and pay for partial
deliveries on the terms set forth herein.  However, nothing in this
paragraph shall relieve Universal Display of its obligations hereunder with
respect to confirmed shipping dates.

     

    1.7 Continuity of
Supply.  Universal Display shall use commercially
reasonable efforts ensure that Universal Display provides the Products to
Kyocera or its Affiliates (as defined below) in the quantity and quality
reasonably Ordered by Kyocera or its Affiliates as set forth
herein.  In support of this obligation, Universal Display shall adopt
and implement, and shall ensure that its contract manufacturer of any Product
adopts and implements, commercially reasonable continuity of business plans and
procedures.  Summary documentation of these plans and procedures shall
be made available to Kyocera upon its request.  In addition, Kyocera
shall have the right, upon prior notice and at mutually agreeable times, to
visit and inspect the facilities of Universal Display and

     

    
      
        
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    1.8 its
contract manufacturer for purposes of verifying that sufficient equipment and
processes are in place for implementation of the continuity of business plans
and procedures.

     

    1.9 Definition of
Affiliate.  For the purpose of this Agreement, “Affiliate”
means a corporation, partnership, trust or other entity that directly or
indirectly (through one or more intermediates) controls, is controlled by or is
under common control with a party.  For such purposes, “control,”
“controlled by” and “under common control with” shall mean the ability to make,
or participate meaningfully in the making of, business decisions on behalf of
the relevant entity and/or such party, as applicable.  “Control” shall
be presumed where the party in question owns fifty percent (50%) or more of the
voting or other similar interests in the relevant entity.

     

    Article
2 Inspection
and Acceptance

     

    2.1 Qualification Testing by
Universal Display.  Universal Display will conduct
qualification testing of each production lot of Product before shipping any
Product from such lot to Kyocera.  Such qualification testing shall be
designed to ensure that the Product conforms to its corresponding specifications
as attached hereto or otherwise agreed to by the parties in writing (the “Product
Specifications”).  Universal Display will not ship Product to
Kyocera from any lot that does not meet the applicable Product
Specifications.  With each Product shipment, Universal Display will
submit to Kyocera a Certificate of Analysis indicating that such lot conforms to
the applicable Product Specifications, which are designed to ensure that the
Product quality of the shipment will be the same as the Product quality of
previous shipments, and that there have been no material changes in the
Products, or in the raw materials (including source(s) of such raw materials),
processes, facilities or contractors used to manufacture the Products, of which
Kyocera was not previously notified in writing.

     

    2.2 Acceptance Testing of
Samples by Kyocera.

     

    2.2.1 Upon
Kyocera’s request and before filling an Order, Universal Display will
provide Kyocera [The confidential material contained herein has been omitted and
has been separately filed with the Commission.] with a [The confidential
material contained herein has been omitted and has been separately filed with
the Commission.] test sample from the production lot(s) from which the Product
will be supplied; provided, however, that no such sample shall be sent from
production lot(s) for which Kyocera has already received a test
sample.  Unless requested by Kyocera, Universal Display will not
initiate any shipment of Product from a new production lot until Kyocera has
notified Universal Display of Kyocera’s approval of the test sample from the
lot.

     

    2.2.2 Within
two (2) weeks following its receipt of a
test sample as specified above, Kyocera will conduct an acceptance test to
confirm that the sample conforms to its corresponding Product
Specifications.  At the conclusion of such two (2) week period, Kyocera will inform
Universal Display in writing as to whether or not the test sample passed this
acceptance test.  Kyocera understands and acknowledges that any delay
in so informing Universal Display may result in an equal delay in the shipping
date.

     

    2.2.3 If the
test sample does not pass Kyocera’s acceptance test, the parties shall promptly
and in good faith discuss and attempt to determine why this has occurred and
to

     

    
      
        
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    2.2.4 implement
procedures to prevent its recurrence.  At the same time, Universal
Display will in good faith endeavor to fill the Order in a timely manner by
shipping to Kyocera Product from one or more production lots for which the test
samples have already passed Kyocera’s acceptance test.  Should there
be insufficient material from such production lots for Universal Display to fill
the Order, Universal Display will promptly provide Kyocera with a test sample
from one or more other production lots for which no test samples have previously
been sent and the process above shall be repeated until sufficient material to
fill the Order has been identified.

     

    2.3 Shipping Inspection by
Universal Display.  Universal Display will conduct a final
visual inspection of all Product before shipping such Product to
Kyocera.  Universal Display will not ship to Kyocera any Product that
does not pass such visual inspection.

     

    2.4 Receiving Inspection by
Kyocera.  Upon receipt of each Product shipment, Kyocera will
inspect such shipment for any shortage or appearance defects.  Kyocera
will provide Universal Display with written notice of any shortage or appearance
defects promptly following Kyocera’s receipt of the shipment, which notice shall
specify in reasonable detail the manner in which the shipment is short or
appears to be defective.  In the absence of Universal Display
receiving written notification to the contrary within thirty (30) days following
Kyocera’s receipt of the shipment, Kyocera shall be deemed to have accepted the
shipment.  [The confidential material contained herein has been
omitted and has been separately filed with the Commission.]

     

    2.5 Other
Procedures.  The parties may agree on more detailed inspection,
certification and testing procedures in order to supplement the foregoing
provisions of this Article 2.  The parties may also agree to eliminate
or curtail the procedure regarding the shipment and acceptance testing of test
samples, in which event acceptance testing will occur in connection with the
receiving inspection of each Product shipment outlined above.  All
modifications to the procedures in this Article 2 must be agreed to in writing
(including confirmed email correspondence) by an authorized representative of
each party and will be effective only when such written agreement is attached to
this Agreement.

     

    2.6 [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

     

    Article
3 Health
and the Environment

     

    3.1 Health and
Safety.  Universal Display will furnish Kyocera with a Material
Safety Data Sheet (an “MSDS”) for each
Product where required by applicable law.  The MSDS shall reasonably
disclose all hazards known to Universal Display in relation to storage,
handling, use and disposal of the Product.  Universal Display will
share with Kyocera specifically requested health and safety test data that
Universal Display, or its contract manufacturer, has already compiled for any
Product.  Kyocera shall use these MSDS’s and such additional test data
to familiarize itself with any known hazards associated with the Products, their
storage, handling, use and disposal, and the containers in which they are
shipped.  Kyocera shall make available the MSDS for each Product to
all those required by law to receive access to them.  In addition,
Kyocera shall appropriately inform and train its employees and other personnel
as to the hazards identified

     

    
      
        
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    3.2 in the
MSDS for each Product and any other hazards discovered by Kyocera through its
use of such Product.

     

    3.3 Waste
Management.  Kyocera shall properly manage and dispose of all
wastes and/or residues resulting from its use of the Products in accordance with
its corresponding MSDS and all applicable laws and regulations.

     

    Article
4 Intellectual
Property Matters

     

    4.1 Permitted Uses of the
Products.  Kyocera acknowledges that Universal Display is
selling the Products to Kyocera solely for use by Kyocera to manufacture a
certain type of OLED related products as authorized under the OLED Technology
License and Technical Assistance Agreement between Universal Display and Kyocera
dated as of the same date hereof (the “License Agreement,” and said products
referred to as the “Licensed Product”).  Accordingly, Kyocera may not
sell or otherwise distribute the Products to any other person or entity, or use
the Products, or permit or assist others to use the Products, for any other
purposes.  Subject to the foregoing, no rights are granted to Kyocera
under any patents or other intellectual property owned or controlled by
Universal Display.  Kyocera acknowledges that the pricing charged by
Universal Display for Products sold under this Agreement is based on Kyocera’s
agreement to use such Products only for the manufacture of Licensed Products,
and that such pricing would not otherwise have been offered to
Kyocera.

     

    4.2 Third-Party
Patents.  Kyocera acknowledges that it may be required to
obtain rights under one or more third-party patents in order to manufacture and
sell its products that contain the Products (e.g., where Kyocera’s
products utilize particular device structures and/or have additional attributes
claimed by such third-party patents).  Upon Kyocera’s request,
Universal Display will reasonable assist Kyocera in determining such
rights.  However, subject to the express warranties and obligations of
Universal Display under Articles 7 and 8 below, Kyocera shall be responsible for
obtaining such rights.  [The confidential material contained herein
has been omitted and has been separately filed with the
Commission.]

     

    4.3 Analysis and Evaluation of
the Products.  Kyocera shall not reverse engineer the Products,
or analyze the Products to determine their chemical compositions, structures or
methods of manufacture, or for any other purposes
not related to manufacturing, developing,
improving or selling Kyocera’s display device with the Product, or
the
manufacturing process for such
display device, or expressly approved in
writing by Universal Display, nor shall Kyocera permit or assist others
to perform the foregoing activities.  In addition, Kyocera shall not
publish or otherwise disclose to third parties any test results or other
information or data regarding Kyocera’s evaluation of the Products without
Universal Display’s prior written consent.  [The confidential material
contained herein has been omitted and has been separately filed with the
Commission.]

     

    4.4 Technical
Advice.  Kyocera is responsible for making its own inquiry and
investigation into, and based thereon forming an independent judgment
concerning, the Products and their suitability for the uses intended by
Kyocera.  Kyocera shall not assert any claim against Universal Display
or hold Universal Display liable in any manner with respect to any information
or designs furnished (or failed to be furnished) by Universal Display including,
without limitation,

     

    
      
        
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    4.5 technical
advice or recommendations.  [The confidential material contained
herein has been omitted and has been separately filed with the
Commission.]

     

    Article
5 Pricing
and Payments

     

    5.1 Product
Pricing.  Pricing for the Products during the term of this
Agreement shall be as set forth on in Exhibit A
hereto.  Any price change will not be
effective unless confirmed by both parties in writing.  Orders issued
prior to any confirmed price change shall remain at the original price unless
agreed in writing by the parties. [The confidential material
contained herein has been omitted and has been separately filed with the
Commission.]

     

    5.2 [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

     

    5.3 Invoicing.  Universal
Display shall invoice Kyocera or its Affiliates for all Products at the time of
shipment.  All invoices are due and payable within sixty (60) days
following the date of Universal
Display’s invoice and
shipment of the Product, subject to
Kyocera’s right to return and withhold payment for Product shipments that are
properly rejected based on Kyocera’s receiving inspection under Section 2.4
above.  If Kyocera fails or refuses to timely pay any amounts
not then being disputed by Kyocera in good faith, Universal Display may, upon
prior written notice to Kyocera, (a) require that Kyocera pay for future
shipments in advance or by letter of credit or other similar means, and/or (b)
suspend delivery of further shipments of Products until Kyocera pays such
undisputed amounts in full.  The foregoing shall not limit any other
rights or remedies available to Universal Display for non-payment or late
payment of amounts due hereunder.

     

    5.4 Sales and Other Similar
Taxes.  Any sales, use or value-added taxes, customs or import
duties or other governmental charges, transfer fees or assessments based on the
sale, shipment, import, export and/or use of the Products sold hereunder (other
than taxes based upon Universal Display’s net income), whether imposed by any
local, state, Federal or foreign government or taxing authority, are in addition
to the purchase price for the Products and shall be the responsibility
of Kyocera.  To the extent Universal Display is responsible by
law for the collection of such amounts, they shall be separately stated on
Universal Display’s invoices for such Products and, upon collection, remitted by
Universal Display to the appropriate taxing authority.

     

    5.5 Payments.  All
amounts due to Universal Display hereunder shall be paid in U.S. Dollars by wire
transfer to a bank designated by Universal Display in writing, or by such other
means as the parties may agree in writing.  Universal Display’s
current wire instructions are as follows:

     

    [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

    

    Each
payment shall be fully earned when due and nonrefundable once
made.  Any and all set-off, deduction or credit for any amount owed
(or alleged to be owed) by Universal Display to Kyocera or any of its Affiliates
will not be permitted without mutual written confirmation of both
Kyocera

     

    
      
        
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    and
Universal Display.  Without limiting its other rights or remedies on
account of any late payment, Universal Display may require Kyocera to pay
interest on any late payments.  [The confidential material contained
herein has been omitted and has been separately filed with the
Commission.]

     

    5.6 Payment Authorization and
Associated Charges.  Kyocera shall secure all authorizations
required for payment of all amounts due to Universal Display hereunder and shall
bear all transfer fees, taxes and other charges associated
therewith.

     

    Article
6 Confidentiality

     

    6.1 Obligations of
Confidentiality and Non-Use.  Each party (the “Recipient”) shall
handle and maintain all Confidential Items of the other party in accordance with
the following terms and conditions:

     

    6.1.1 Recipient
shall not publish, disclose or otherwise disseminate any Confidential Items of
the other party, except to such of Recipient’s employees and agents (and, in the
case of Kyocera, to the employees and agents of its Affiliates) who have a “need
to know” it to accomplish the purposes of this Agreement, and then only if such
persons are previously otherwise obliged to handle and maintain such
Confidential Items in accordance with the provisions of this Agreement or
provisions substantially similar thereto.  Disclosure or dissemination
of Confidential Items of the other party to additional persons or entities
requires the prior written approval of such other party.

     

    6.1.2 Recipient
shall maintain all Confidential Items of the other party in a safe and secure
place with reasonable safeguards to prevent any unauthorized access to or
disclosure of such Confidential Items.  As used herein, “reasonable
safeguards” means all safeguards that a reasonable person would take to protect
the Confidential Item in question, which safeguards shall be no less than the
safeguards Recipient takes to protect its own confidential or proprietary items
of a similar nature.

     

    6.1.3 Recipient
may copy Confidential Items of the other party only as is reasonably necessary
for Recipient to accomplish the purposes of this Agreement.  Copying
or reproduction of Confidential Items except as permitted herein is strictly
prohibited.

     

    6.1.4 Recipient
shall not utilize or exploit any Confidential Items of the other party, or
permit or assist others to utilize or exploit such Confidential Items, except as
is reasonably necessary to accomplish the purposes of this
Agreement.  Reverse engineering, disassembly or other methods designed
to derive the composition, structure, method of manufacture or purity of
Confidential Items is strictly prohibited except for Kyocera’s tests as
otherwise permitted in this Agreement.

     

    6.1.5 Recipient
shall not publish or otherwise disclose to third parties, including by
referencing or including in any patent application, any test results or other
information or data regarding Recipient’s evaluation or use of any Confidential
Items of the other party without the other party’s prior written
consent.

     

    
      
        
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    6.1.6 Promptly
upon learning of any unauthorized use or disclosure of any Confidential Item of
the other party, Recipient shall provide the other party with written notice
thereof and take such other steps as are reasonably requested by the other party
in order to limit the effects of such use or disclosure and/or prevent any
further unauthorized use or disclosure of such Confidential Item.

     

    6.1.7 Promptly
upon the expiration or sooner termination of this Agreement, Recipient shall
return to the other party, destroy and/or delete from Recipient’s records and
computer systems all Confidential Items of the other party, including any copies
or portions thereof, in Recipient’s possession or control; provided, however,
that Recipient may retain one copy of documents incorporating Confidential Items
for archival purposes only if permitted by the other party.  Within
thirty (30) days following the other party’s written request, Recipient shall
provide the other party with a certificate of Recipient’s compliance with the
foregoing requirements.

     

    6.2 Definition of Confidential
Items. As used
herein, “Confidential
Items” of a party are all trade secret, proprietary and confidential
information and materials, in written, oral or electronic form, relating to such
party’s or its licensors’, suppliers’ or business partners’ technologies,
compounds, research programs, operations and/or financial or business condition
(including, without limitation, know-how, data, drawings, designs,
specifications, formulations, processes, methods, equipment, software and
pricing information) that is (a) disclosed in writing and marked as
“Confidential”, “Proprietary” or with similar words at the time of disclosure,
or (b) orally disclosed and identified as confidential or proprietary at the
time of disclosure and confirmed as such in writing, conspicuously marked as
described above, within thirty (30) days thereafter.  Notwithstanding
the foregoing, “Confidential Items” of a party shall not include any information
or materials that:

     

    6.2.1 are
approved by such party in writing for release by Recipient without
restriction;

     

    6.2.2 Recipient
can demonstrate by written records were previously known to Recipient other than
through a prior disclosure by such party or any third party with an obligation
of confidentiality to such party;

     

    6.2.3 are
publicly known as of the date of this Agreement, or become public knowledge
subsequent thereto, through no act or omission of Recipient or any third party
receiving such items from or through Recipient;

     

    6.2.4 are
obtained by Recipient in good faith from a third party without the violation of
any obligation of confidentiality to such party by either Recipient or the third
party; or

     

    6.2.5 are
independently developed by or on behalf of Recipient without the benefit of such
party’s Confidential Items, as shown by competent written records.

     

    6.3 Disclosure Required by
Law.  This Agreement shall not restrict Recipient from
disclosing any Confidential Items of the other party to the extent required by
applicable law, or by the order of any court or government agency; provided,
however, that Recipient shall afford the

     

    
      
        
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    6.4 other
party prompt notice of such law or order, so that the other party may interpose
an objection to such disclosure or take whatever other actions the other party
deems appropriate to protect such Confidential Items, and provided further that
Recipient shall use all reasonable efforts to limit such disclosure to only
those Confidential Items that are required to be disclosed and to ensure that
the person or entity to whom such Confidential Items are disclosed agrees to
keep them confidential.

     

    6.5 Responsibility for
Personnel.  Recipient shall be responsible for the acts or
omissions of any persons or entities receiving Confidential Items of the other
party from or through Recipient to the extent such acts or omissions, if
performed or not performed by Recipient, would constitute violations of this
Agreement by Recipient.

     

    6.6 Confidentiality of this
Agreement.  The terms of
this Agreement and its existence shall be deemed Confidential Items of each
party and treated as such by both parties unless otherwise stipulated in this
Agreement.  Notwithstanding the foregoing sentence, either party may
disclose in its public filings such of the terms of this Agreement as are
reasonably required for such party to comply with applicable securities laws and
regulations, including, without limitation, by filing an appropriately redacted
copy of this Agreement in connection therewith.  In addition, either
party may issue a press release or other public announcement describing the
general nature of this Agreement upon prior agreement of the parties, or the
parties may agree to issue such a release or announcement
jointly.  However, it is expressly understood and agreed that no such
release or public disclosure shall disclose any information about Kyocera’s
expected or intended product launch strategy without Kyocera’s prior written
consent.  Subject to the foregoing provisions of this paragraph, any
such public disclosure of the specific financial terms or other provisions of
this Agreement, or any other information regarding the relationship between the
parties hereunder, shall require the other party’s prior written
consent.

     

    Article
7 Representations
and Warranties; Disclaimers and Limitations of Liability

     

    7.1 Warranties by Both
Parties.  Each party represents and warrants to the other that
such party has the right, power and authority to enter into this Agreement and
to perform its obligations hereunder, and that such performance will not violate
any other agreement or understanding by which such party is bound.

     

    7.2 Further Product Warranty by
Universal Display.  Universal Display additionally represents
and warrants to Kyocera that, on the date of shipment and for a period of [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.] from the date of shipment of the Products to
Kyocera, and subject to Kyocera maintaining the Products consistent with
commercially reasonable handling and storage practices and in accordance with
reasonable instructions provided in writing by Universal Display, each Product
will: (i) be clear of any liens or encumbrances; (ii) comply with its
corresponding Product Specifications; and (iii) [The confidential material
contained herein has been omitted and has been separately filed with the
Commission.]  In the event of a breach of the foregoing warranty which
occurs during the warranty period, and subject to Kyocera providing Universal
Display with prompt written notice thereof, Universal Display shall, at
Kyocera’s sole option and in addition to any other remedies in law or equity,
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    7.3 forth in
this Agreement, for breach of such warranty: (a) promptly replace any Products
that are not in compliance with the warranty at Universal Display’s sole
expense; and (b) reimburse all the fees that Kyocera paid Universal Display on
account thereof.  Upon Universal Display’s request, Kyocera shall
return any Products claimed to be defective so that Universal Display may
analyze them to verify the defect and determine what caused the
defect.

     

    7.4 Further Infringement
Warranty by Universal Display.  Universal Display represents
and warrants to Kyocera that, to the best of Universal Display’s knowledge, the
Products [The confidential material contained herein has been omitted and has
been separately filed with the Commission.].  If Kyocera is unable to
use any Product because the Product is held by a court of competent jurisdiction
to infringe such patent rights, Universal Display shall, in addition to
Kyocera’s other remedies in law or equity, but subject to the disclaimers and
limitations of liability set forth in this Agreement, accept return of any
quantities of such Product no longer reasonably useful to Kyocera on account
thereof and reimburse all fees that Kyocera paid Universal Display on account
thereof.  [The confidential material contained herein has been omitted
and has been separately filed with the Commission.]  The foregoing
shall be in addition to any indemnification
obligation of Universal Display under Article 8 below.

     

    7.5 Disclaimer of Additional
Warranties.  ALL OTHER WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF NON-INFRINGEMENT,
VALIDITY, QUALITY, PERFORMANCE, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, ARE HEREBY DISCLAIMED BY EACH PARTY.

     

    7.6 Limitation on Damages for
Breach of Warranty.  IN NO EVENT SHALL EITHER PARTY’S LIABILITY
FOR ANY BREACH OR ALLEGED BREACH OF REPRESENTATION OR WARRANTY UNDER THIS
AGREEMENT EXCEED IN THE AGGREGATE [The confidential material contained herein
has been omitted and has been separately filed with the
Commission.]

     

    7.7 Limitation on Certain
Damages.  [The confidential material contained herein has been
omitted and has been separately filed with the Commission.] IN NO EVENT SHALL
EITHER PARTY BE LIABLE TO THE OTHER, WHETHER AS A RESULT OF BREACH OF CONTRACT,
TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, FOR ANY INDIRECT, SPECIAL, INCIDENTAL,
PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING UNDER OR IN CONNECTION WITH A BREACH
OR ALLEGED BREACH OF THIS AGREEMENT.  The foregoing limitation shall
not limit either party’s liability to the other party for: (a) any claims of
bodily injury or damage to tangible property resulting from such party’s gross
negligence or willful misconduct; (b) any unauthorized use of the other party’s
materials or technology; (c) any infringement of the other party’s patents; or
(d) any breach of the provisions of Article 6 respecting the other party’s
Confidential Items.

     

    7.8 Essential Part of the
Bargain.  The parties acknowledge that the disclaimers and
limitations of liability set forth in this Article 7 reflect a deliberate and
bargained for allocation of risks between them and are intended to be
independent of any exclusive remedies available under this Agreement, including
any failure of such a remedy to achieve its essential purpose.

     

    
      
        
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    7.9 Mutual
Cooperation.  In the event of any problems discovered by Kyocera with
respect to performance of the Products in Kyocera’s OLED display devices, and
whether or not such problems are due to a breach of warranty on the part of
Universal Display, the parties shall in good faith cooperate to discuss and
attempt to identify the causes of and resolve such problems in a mutually
satisfactory and timely manner.

     

    Article
8 Indemnification

     

    8.1 Indemnification by Universal
Display.  In accordance with Section 8.2 below,
Universal Display shall defend and/or settle any third-party claim or action
brought against Kyocera and/or its officers, directors, suppliers, employees,
agents and representatives (each, a “Kyocera Indemnified
Person”), to the extent such claim or action concerns [The confidential material contained herein
has been omitted and has been separately filed with the
Commission.].  In addition, Universal Display shall indemnify and hold
harmless the Kyocera Indemnified Persons from and against any damages, fees and
expenses (including reasonable attorneys’ fees) payable by any of them to third
parties in connection with such claim or action[The confidential material
contained herein has been omitted and has been separately filed with the
Commission.].

     

    8.2 Indemnification
Procedures.  With respect to any claim or action for which
indemnification may be sought from a party under this Article 8, the person or
entity seeking indemnification (the “Claimant”) shall
promptly notify the indemnifying party in writing, specifying the nature of the
claim or action and, to the extent known, the total monetary amount sought or
other such relief as is sought therein.  If it is unclear whether the
claim or action is subject to indemnification under this Agreement, the parties
will meet and in good faith discuss the situation in an effort to promptly
resolve the matter.  The Claimant shall reasonably cooperate with the
indemnifying party, at the indemnifying party’s expense, in connection with the
defense and/or settlement of the claim or action.  Provided the
indemnifying party admits its obligation to indemnify the Claimant hereunder,
indemnifying party shall have the right to control and conduct all proceedings
or negotiations in connection therewith, and to assume and control the defense
thereof.  The Claimant shall have the right to employ separate counsel
to provide input into the defense, at Claimant’s own cost.  The
indemnifying party shall keep the Claimant reasonably informed of the progress
of its defense and settlement of the claim or action.  The
indemnifying party shall not settle the claim or action on the Claimant’s behalf
without first obtaining the Claimant’s written approval, which approval shall
not be unreasonably withheld or delayed.  Upon rejecting any
settlement offer that does not admit liability or fault on the part of the
Claimant, the Claimant shall assume ongoing responsibility for the defense
and/or settlement of the claim or action, and shall be deemed to have waived any
right to indemnification in excess of the settlement offer
amount.  The Claimant may settle any claim or action for which
indemnification is sought hereunder, but the indemnifying party will not be
responsible for any such settlement unless it shall have approved the
settlement, in writing and in advance, which approval shall not be unreasonably
withheld or delayed.  Except as may be required by law, each party
agrees not to publicize any settlement without first obtaining the other party’s
written permission.

     

    8.3 Liability
Insurance.  Universal Display further agrees to maintain, at
Universal Display’s expense, commercial general liability insurance, including
bodily injury and property damage, in the amount of at least [The
confidential material contained herein has been omitted and

     

    
      
        
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    8.4 has been
separately filed with the Commission.] per occurrence above the lowest
commercially reasonable deductible that may be obtained, during the term of this
Agreement [The confidential material contained herein has been omitted and has
been separately filed with the Commission.].  Universal Display will
add Kyocera as additional insured on these policies, and, upon request,
Universal Display will supply Kyocera with copies of all such policies or
certificates of all such insurance.

     

    Article
9 Term
and Termination

     

    9.1 Term.  Unless
otherwise extended by mutual written agreement of the parties, the term of this
Agreement shall commence on the Effective Date and shall continue, unless
terminated sooner as permitted hereunder, for a period of five (5) years or
through the date on which the License Agreement expires or is terminated,
whichever is sooner.  After the initial five (5) year period, this
Agreement will subject to renewal by mutual written agreement of the parties,
which agreement shall not be unreasonably withheld. [The confidential
material contained herein has been omitted and has been separately filed with
the Commission.]

     

    9.2 Termination for
Breach.  Either party may terminate this Agreement on written
notice to the other party if the other party materially breaches any of its
obligations under this Agreement and fails to cure such breach within thirty
(30) days following written notice thereof by the terminating
party.  Provided, however, if such breach is not reasonably
susceptible of being cured within such thirty (30) day period, so long as the
breaching party has commenced to cure the breach and diligently prosecutes the
cure during such thirty (30) day period, the breaching party will be allowed an
additional reasonable period after such thirty (30) day period to diligently
complete the cure, said additional reasonable period not to exceed sixty (60)
days unless mutually agreed to by the parties in writing.

     

    9.3 Other
Termination.  Either party may terminate this Agreement on
written notice to the other party if the other party permanently ceases
conducting business in the normal course, becomes insolvent or is adjudicated
bankrupt, makes a general assignment for the benefit of its creditors, admits in
writing its inability to pay its debts as they become due, permits the
appointment of a receiver for its business or assets, or initiates or becomes
the subject of any bankruptcy or insolvency proceedings which proceedings, if
initiated involuntarily, are not dismissed with ninety (90) days
thereafter.

     

    9.4 Survival.  The
following provisions of this Agreement shall survive the expiration or earlier
termination of this Agreement:  (a) Articles 4 through 10; (b) any
payment obligations of Kyocera with respect to Products received or for which
Orders have been placed prior to the date of such expiration or earlier
termination; and (c) any other provisions necessary to interpret the respective
rights and obligations of the parties hereunder.

     

    Article
10 Miscellaneous

     

    10.1 Independent
Contractors.  This Agreement is not intended by the parties to
constitute, create, give effect to, or otherwise recognize a joint venture,
partnership, or formal business organization of any kind.  Each party
hereto shall act as an independent contractor, and

     

    
      
        
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    10.2 neither
shall act as an agent of the other for any purpose.  Neither party has
the authority to assume or create any obligation, express or implied, on behalf
of the other.

     

    10.3 Force
Majeure.  Neither party shall be in breach of this Agreement
for any failure of performance caused by an event beyond its reasonable control
and not due to its fault or negligence, but excluding any failure to pay
monetary amounts due and owing.  In the event that such a force
majeure event occurs, the party unable to perform shall promptly notify the
other party of such non-performance and its expected duration.  In
addition, such party shall in good faith maintain such partial performance of
this Agreement as is reasonably possible, shall use all reasonable efforts to
overcome the cause of nonperformance and shall resume full performance as soon
as is reasonably possible.

     

    10.4 Notices.  Any
disclosures or notices required or permitted hereunder shall be in writing and
shall be deemed effectively given upon receipt of such disclosures or notices by
the receiving party.  Such disclosure or notices shall be given by
personal delivery, certified mail with postage prepaid and return receipt
requested, or prepaid delivery using a recognized private courier, to each party
at its address set forth below.  Either party may change its address
for such notices at any time by means of a notice given in the manner provided
in this paragraph.

     

    All
Orders and any other notices respecting the Products, to:

    

    
      
        	
                Universal
      Display Corporation

              	 
      	
                Kyocera
      Corporation

              
	
                375
      Phillips Boulevard

              	 
      	
                Head
      Office

              
	
                Ewing,
      New Jersey  08618

              	 
      	
                6
      Takeda Tobadonocho

              
	 
      	 
      	
                Fushimi-ku,
      Kyoto 612-8501 Japan

              

      

    

    

    [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

    

    All other
notices and communications:

    

    [same as
above]                                                                                     [same
as above]

     

    [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

    

    10.5 Non-Assignment.  This
Agreement and the rights and obligations of the parties hereunder shall not be
assigned or transferred by either party without the prior written consent of the
other party, except that either party may assign or transfer this Agreement, in
its entirety and on written notice to the other, to a successor in interest to
all or substantially all of such party’s business to which this Agreement
relates, whether by merger, acquisition or otherwise.  Notwithstanding
the foregoing, Kyocera may not assign or transfer this Agreement to a third
party to whom Kyocera would not be permitted to assign or transfer the License
Agreement.  Should Kyocera assign or transfer this Agreement, whether
by merger, acquisition or otherwise, to a third party with an existing OLED
business, or should Kyocera acquire the existing OLED business of any third
party, the Products sold to Kyocera under this Agreement shall not be used in
any current or future products of such third party’s OLED business unless
expressly agreed to by Universal

     

    
      
        
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    10.6 Display
in writing.  Moreover, should Universal Display have already entered
into a similar supply agreement with the third party at the time of such
assignment, transfer or acquisition, there shall be no reduction of the payment
or other obligations of Kyocera under this Agreement as they pertain to Products
sold to Kyocera for use in its OLED business, or of such third party under its
similar supply agreement as they pertain to Products used in the third party’s
OLED business, unless expressly agreed to by Universal Display in
writing.  Nothing herein shall confer any rights upon any person other
than the parties hereto and their respective successors and permitted
assigns.

     

    10.7 Equitable
Relief.  In the event of a party’s actual or reasonably
anticipated infringement of the other party’s patents, unauthorized use of the
other party’s proprietary materials or information; or breach of the provisions
of Article 6 respecting the other party’s Confidential Items, the other party
may seek to obtain such injunctions, order and decrees as may be necessary to
restrain such activity, without the necessity of proving actual damages and
without posting any bond or other security.  Such injunctive relief
shall be in addition to any other rights or remedies available to the other
party under this Agreement, at law or in equity.

     

    10.8 Choice of
Law.  This Agreement shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New Jersey, U.S.A.,
without respect to its rules on the conflict of laws.  Any dispute or
difference arising out of or in connection with this Agreement (including any
question regarding its existence, validity or termination) shall be submitted to
the competent courts of a country where proper jurisdiction and venue exists
over the party against which a claim is being asserted.

     

    10.9 Severability.  In
the event that any term of this Agreement is held to be invalid, illegal, or
unenforceable, such invalidity, illegality, or unenforceability shall not affect
any other portion of this Agreement, and there shall be deemed substituted for
such term other term(s) that are permitted by applicable law and that will most
fully realize the intent of the parties as expressed in this
Agreement.

     

    10.10 No
Waivers.  The failure of either party to enforce, or any delay
in enforcing, any right, power or remedy that such party may have under this
Agreement shall not constitute a waiver of any such right, power or remedy, or
release the other party from any obligations under this Agreement, except by a
written document signed by the party against whom such waiver or release is
sought to be enforced.

     

    10.11 Entire Agreement;
Amendments.  This Agreement constitutes the entire
understanding and agreement of the parties respecting the subject matter hereof
and supersedes any and all prior agreements, arrangements or understandings
between the parties, whether written or oral, relating thereto.  This
Agreement may not be amended or supplemented in any way except by a written
document signed by both parties.

     

    10.12 Counterparts.  This
Agreement may be executed by the parties hereto in separate counterparts, each
of shall be deemed an original, but all of which together shall constitute one
and the same instrument.

     

    
      
        
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    10.13  Export
Control.  Both parties agree to cooperate to ensure that
exports of the Product and related technical data from the United States to
Japan comply with U.S. export control regulations.  [The confidential
material contained herein has been omitted and has been separately filed with
the Commission.]  Kyocera also agrees not to re-export the Products or
technical data from Japan, or to sell or provide the Products or technical data
to a third party, without complying with the applicable U.S. export and
re-export regulations.  Upon Kyocera’s request, Universal Display will
provide Kyocera with reasonable assistance in understanding the requirements of
these regulations.

     

    Article
11 Effective
Date

     

    Except
for the provisions of this Article 11, this Agreement shall become effective
only when Kyocera gives a written notice to Universal Display on or before
December 31, 2008, [The confidential material contained herein has been omitted
and has been separately filed with the Commission.]

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
their duly authorized representatives:

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Kyocera
      Corporation

                                      	 
      	
                                        Universal
      Display Corporation

                                      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                        By:          /s/ Yasushi Matsumura

                                      	 
      	
                                        By:          /s/ Steven V. Abramson

                                      
	 
      	 
      	 
      
	
                                        Name:    Yasushi Matsumura

                                      	 
      	
                                        Name:     Steven V. Abramson

                                      
	 
      	 
      	 
      
	
                                        Title:      Executive Officer

                                      	 
      	
                                        Title:       President                      

                                      
	
                                                       General Manager,
      Corporate Display Group

                                      	 
      	 
      
	 
      	 
      	 
      
	
                                        Date:                      July 23,
      2008                                

                                      	 
      	
                                        Date:       July 28,
      2008                                

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

     

     

     

    
 

    
      
        
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    Exhibit
A

    

    Products
and Product Pricing

    

    

    Products:
[The confidential material contained herein has been omitted and has been
separately filed with the Commission.]

    

    Price of
the Products shall be as follows:

    

    [The
confidential material contained herein has been omitted and has been separately
filed with the Commission.]

    

    
      
        
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