Document:

ex10-2.htm

Exhibit 10.2

 

PARALLEL LICENSE AGREEMENT

 

This Parallel License Agreement (“Agreement”) is entered into as of March 10, 2016 (the “Effective Date”), by and between DongGuan Eontec Co., Ltd., a corporation organized under the laws of the People’s Republic of China having an address of Yin Quan Industrial District, Qing Xi, DongGuan, China (“Eontec”), and Liquidmetal Technologies, Inc., a corporation organized under the laws of the State of Delaware, having an address of 30452 Esperanza, Rancho Santa Margarita, California 92688 (“LMT”). Either Eontec or LMT may be referred to individually herein as a “party”, and Eontec and LMT may be referred to collectively herein as the “Parties”.

 

RECITALS

 

WHEREAS, Eontec and LMT have expressed a desire to agree to the terms set forth herein and are memorializing such terms as set forth in this Agreement.

 

NOW THEREFORE, the Parties hereby agree as follows:

 

ARTICLE 1

CERTAIN DEFINITIONS

 

For purposes of this Agreement and except as otherwise specifically set forth herein, the following terms shall have the following meanings:

 

1.1.     “Affiliate” shall mean, with respect to any specified person or entity, any corporation, limited liability company or other legal entity which directly or indirectly controls, is controlled by, or is under common control with specified person or entity or its successors or assigns. For the purposes of this Agreement, “control” shall mean the direct or indirect ownership of more than fifty percent (50%) of the outstanding shares on a fully diluted basis or other voting rights of the specified entity to elect directors or managers, or the right to direct or cause the direction of the management and policies of the specified entity whether by contract or otherwise; and the terms “controlling” and “controlled” have meaning correlative to the foregoing. For purposes of this Agreement, Eontec and Lugee Li shall not be deemed to be Affiliates of LMT. Additionally, the following organizations shall be deemed to be Affiliates of Eontec for purposes of this Agreement: Meon Magnesium Technology Company ("Meon") and Liquidmetal China Company ("LCC").

 

1.2.     “BMG Products” means any product or component made with one or more amorphous alloys or bulk metallic glasses (or composite materials containing amorphous alloys or bulk metallic glasses).

 

1.3.     “Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to be closed for business.

 

1.4.     “Confidential Information” shall mean any and all commercial, technical, financial, proprietary, and other information relating to a Discloser, its Affiliates, and their respective business operations, including, but not limited to, samples, data, technical information, know-how, formulas, ideas, inventions, discoveries, patents, patent applications, Intellectual Property, product development plans, demonstrations, business and financial information, applications and designs, and all manifestations or embodiments relating to the foregoing and all improvements made thereto, in whatever form provided, whether oral, written, visual, machine-readable, electronic, or otherwise. “Confidential Information” also includes any information described above which a Discloser obtains from a third party and which the Discloser treats as proprietary or designates as confidential, whether or not owned or developed by the Discloser.

 

 

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1.5.     “Discloser” shall mean the party that is disclosing Confidential Information under this Agreement, regardless of whether such Confidential Information is being provided directly by such party, by a Representative of the party, or by any other person that has an obligation of confidentiality with respect to the Confidential Information being disclosed.

 

1.6.     “Eontec Exclusive Territory” shall consist of the following countries: Brunei, Cambodia, China (P.R.C and R.O.C.), East Timor, Indonesia, Japan, Laos, Malaysia, Myanmar, North Korea, Philippines, Singapore, South Korea, Thailand and Vietnam. 

 

1.7.     “Eontec Field” shall mean all fields of use except as described in the Field of Use Restrictions.

 

1.8.     “Eontec Licensed Patents” shall mean any and all Patents of Eontec or any Affiliate of Eontec in existence as of the Effective Date, including without limitation those listed in Appendix B, and those Patents of Eontec or any Affiliate thereof for any invention that is first created, conceived, or reduced to practice during the period beginning on the Effective Date and ending of the last day of the Joint Development Period.

 

1.9.     “Eontec Licensed Products” shall mean any product the manufacture, use, offer for sale, sale or importation of which by Eontec would, but for this Agreement, infringe a valid claim of an LMT Licensed Patent in a jurisdiction where such valid claim exists or that incorporates or uses any element of the LMT Licensed Technical Information in its design or manufacture.

 

1.10.     “Eontec Licensed Technical Information” shall mean unpublished research and development information, unpatented inventions, know-how, trade secrets, and technical data now, or hereafter through the end of the Joint Development Period, in the possession of Eontec that are reasonably necessary or useful for using the Eontec Licensed Patents to produce LMT Licensed Products within the LMT Field, provided Eontec has the right to disclose such items to LMT. 

 

1.11.     “Eontec Licensed Trademarks” shall mean any and all trademarks, service marks, trade names, corporate names, logos, trade dress, domain names or any other indicator of source or origin of Eontec or any Affiliate of Eontec in existence as of the Effective Date, including without limitation those listed in Appendix B.

 

 

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1.12.     “Field of Use Restrictions” means the exclusions, conditions, limitations, and restrictions described on Appendix C hereto.

 

1.13.     “Intellectual Property” means any and all inventions (whether or not protected or protectable under patent laws), works of authorship, information fixed in any tangible medium of expression (whether or not protected or protectable under copyright laws), moral rights, trademarks, trade secrets, developments, designs, applications, processes, know-how, discoveries, ideas (whether or not protected or protectable under trade secret laws), and all other subject matter protected or protectable under patent, copyright, moral right, trademark, trade secret, or other laws, including, without limitation, all new or useful art, combinations, formulae, manufacturing techniques, technical developments, applications, data, and research results.

 

1.14.     “Joint Development Period” has the meaning set forth in Section 5.1 below.

 

1.15.     “Licensed Patent” means an Eontec Licensed Patent or LMT Licensed Patent.

 

1.16.     “Licensed Product” means an Eontec Licensed Product or LMT Licensed Product.

 

1.17.     “Licensed Technical Information” shall mean any Eontec Licensed Technical Information or LMT Licensed Technical Information.

 

1.18.     “Licensee” shall mean a party to this Agreement acting in its capacity as the grantee of a license pursuant to Article 2 hereof.

 

1.19.     “Licensor” shall mean a party to this Agreement acting in its capacity as a grantor of a license pursuant to Article 2 hereof.

 

1.20.      “Licensed Trademark” shall mean any Eontec Licensed Trademark or LMT Licensed Trademark.

 

1.21.     “LMT Exclusive Territory” shall consist of the following countries the United States and the rest of North America and all of Europe, including the following countries: Albania, Andorra, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Republic of Macedonia, Malta, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.

 

1.22.     “LMT Field” shall mean all fields of use except as described in the Field of Use Restrictions.

 

1.23.     “LMT Licensed Patents” shall mean any and all Patents of LMT or any Affiliate of LMT in existence as of the Effective Date in the Eontec Exclusive Territory and Non-Exclusive Territories, including without limitation the applicable foreign counterpart patents of those U.S. Patents listed in Appendix A, and those Patents of LMT or any Affiliate thereof in the Eontec Exclusive Territory and Non-Exclusive Territories for any invention that is first created, conceived, or reduced to practice during the period beginning on the Effective Date and ending of the last day of the Joint Development Period. 

 

 

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1.24.     “LMT Licensed Products” shall mean any product the manufacture, use, offer for sale, sale or importation of which by LMT would, but for this Agreement, infringe a valid claim of an Eontec Licensed Patent in a jurisdiction where such valid claim exists or that incorporates or uses any element of the Eontec Licensed Technical Information in its design or manufacture.

 

1.25.     “LMT Licensed Technical Information” shall mean unpublished research and development information, unpatented inventions, know-how, trade secrets, and technical data now, or hereafter through the end of the Joint Development Period, in the possession of LMT that are reasonably necessary or useful for using the LMT Licensed Patents to produce Eontec Licensed Products within the Eontec Field, provided LMT has the right to disclose such items to Eontec. 

 

1.26.     “LMT Licensed Trademarks” shall mean any and all trademarks, service marks, trade names, corporate names, logos, trade dress, domain names or any other indicator of source or origin of LMT or any Affiliate of LMT in existence as of the Effective Date, including without limitation those listed in Appendix A. 

 

1.27.     “Non-Exclusive Territories” means geographic regions outside of the LMT Exclusive Territory and Eontec Exclusive Territory. 

 

1.28.     “Patents” shall mean any and all letters patent (including, but not limited to, patents of implementation, improvement, or addition, utility model and appearance design patents, and inventors certificates, as well as all divisionals, reissues, reexaminations, continuations, continuations-in-part, renewals, extensions, substitutions, foreign equivalents and counterparts, and any other forms of patent protection directed to the inventions covered by any of the foregoing), applications for letters patent (including, but not limited to, all foreign counterpart patent applications), and letters patent that may issue on such applications.

 

1.29.     “Purchase Agreement” means that certain Securities Purchase Agreement, dated as of the Effective Date, between LMT and Liquidmetal Technology Limited, a Hong Kong corporation. 

 

1.30.     “Recipient” shall mean the party receiving Confidential Information that is protected under this Agreement.

 

1.31.     “Representatives” shall mean the respective directors, officers, employees, financial advisors, accountants, attorneys, agents, and consultants of a party.

 

1.32.     “Technologies” shall mean the certain respective technologies licensed by the Parties hereunder.

 

1.33.      “Trademarks” shall mean any and all trademarks, service marks, trade names, corporate names, logos, trade dress, domain names or any other indicator of source or origin.

 

 

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ARTICLE 2

PATENT LICENSE GRANT AND RELATED COVENANTS

 

2.1.     Patent License Grant to Eontec. Upon the terms and conditions set forth herein (including the termination provisions in Article 7 hereof) and subject to the Field of Use Restrictions, LMT hereby grants to Eontec a non-revocable, paid-up, royalty-free, perpetual license (or sublicense, as the case may be) to the LMT Licensed Patents and LMT Licensed Technical Information to make, have made, use, offer to sell, sell, export and import Eontec Licensed Products within the Eontec Field in the Eontec Exclusive Territory and Non-Exclusive Territories. Such license shall be exclusive to Eontec (including to the exclusion of LMT and its Affiliates) in the Eontec Exclusive Territory and shall be non-exclusive in the Non-Exclusive Territories. Notwithstanding the foregoing, nothing in this Agreement shall prohibit Eontec from engaging in research or development activities in the LMT Exclusive Territory. 

 

2.2.     Patent License Grant to LMT.   Upon the terms and conditions set forth herein (including the termination provisions in Article 7 hereof) and subject to the Field of Use Restrictions, Eontec hereby grants to LMT a non-revocable, paid-up, royalty-free, perpetual license (or sublicense, as the case may be) to the Eontec Licensed Patents and Eontec Licensed Technical Information to make, have made, use, offer to sell, sell, export and import LMT Licensed Products within the LMT Field in the LMT Exclusive Territory and Non-Exclusive Territories. Such license shall be exclusive to LMT (including to the exclusion of Eontec and its Affiliates) in the LMT Exclusive Territory and shall be non-exclusive in the Non-Exclusive Territories. Notwithstanding the foregoing, nothing in this Agreement shall prohibit LMT from engaging in research or development activities in the Eontec Exclusive Territory. 

 

2.3.     Territories. Eontec shall take such action and measures as shall be necessary to ensure that Eontec Licensed Products are not sold or resold in or into the LMT Exclusive Territory by Eontec or any other party in the chain of distribution (whether as a part of a finished product assembled or produced by a third party or otherwise) without first obtaining the prior written consent of LMT. LMT shall take such action and measures as shall be necessary to ensure that LMT Licensed Products are not sold or resold in or into the Eontec Exclusive Territory by LMT or any other party in the chain of distribution (whether as a part of a finished product assembled or produced by a third party or otherwise) without first obtaining the prior written consent of Eontec.

 

2.4.     Sublicensing. The licenses set forth in this Agreement shall exclude the right to sublicense except for the following: (i) sublicenses as to which the Licensor provides prior written consent to the sublicense, (ii) sublicenses to Affiliates of the Licensee, provided that such Affiliates shall expressly agree to be bound by the terms of this Agreement and the Licensee shall be responsible for such compliance and liable for noncompliance by the Affiliate, (iii) sublicenses granted to contract manufacturers solely for the Licensee solely for purposes of manufacturing Licensed Products for Licensee, provided that any such contract manufacturer agrees in writing to comply with Article 7 hereof as though the contract manufacturer was the Licensee hereunder and such writing expressly provides that Licensor may enforce the same, and (iii) sublicenses defined by product or industry that are granted by Licensor to a third party for the purpose of enabling the third party to manufacture or distribute BMG Products and provided that the third party agrees to comply with the terms of this Agreement (including the territorial restrictions and limitations herein) (“Customer Sublicenses”), but excluding any such sublicense to a military entity or for a military use or any license to a governmental entity or to a commercial entity that is owned or controlled by governmental entity.

 

 

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2.5.     Patent Marking. Each party in its capacity as Licensee (and each of its permitted sublicensees) shall comply with the patent marking provisions of 35 USC § 287(a) by marking all Licensed Products with the word "patent" or the abbreviation "pat." and either the numbers of the relevant Licensed Patents or a web address that is freely accessible to the public and that associates the Licensed Products with the relevant Licensed Patents.

 

2.6.     Regulatory Compliance. Each party in its capacity as a Licensee (and each of its permitted sublicensees) shall, at Licensee's expense, comply with all regulations and safety standards concerning Licensed Products developed and commercialized by or under the authority of Licensee and obtain all necessary governmental approvals for the development, production, distribution, sale and use of Licensed Products developed and commercialized by or under the authority of Licensee, including any safety studies. Licensee shall have responsibility for and provide suitable warning labels, packaging and instructions as to the use for such Licensed Products.

 

2.7.     U.S. Export Laws. Neither Licensee nor any permitted sublicensee thereof will, directly or indirectly, export (including any "deemed export"), nor re-export (including any "deemed re-export") the Licensed Products (including any associated products, items, articles, computer software, media, services, technical data, and other information) in violation of any applicable United States laws, rules, or regulations. For the purposes hereof, the terms "deemed export" and "deemed re-export" have the meanings set forth in Section 734.2(b)(2)(ii) and Section 734.2(b)(4), respectively, of the Export Administration Regulations (EAR) (15 CFR §§ 734.2(b)(2)(ii) and 734.2(b)(4)).

 

2.8.     Recordation of License. If recordation of this Agreement or any part of it by a national or supranational agency is necessary for a party hereto to fully enjoy the rights, privileges and benefits of this Agreement, each party in its capacity as a Licensee may at its own expense record this Agreement or all such parts of this Agreement and information concerning the license granted hereunder with each such appropriate national or supranational patent agency. Licensee shall (a) provide to Licensor for Licensor's review and approval all documents or information it proposes to record at least fifteen (15) days prior to the recordation thereof, and (b) promptly notify Licensor with verification of Licensee's recordation or any related agency ruling.

 

2.9.     Prosecution of Patents. For each patent and patent application included as a Licensed Patent, the applicable Licensor shall be responsible for the preparation, filing, prosecution, and maintenance thereof, and shall notify Licensee of any new patent application filings or decisions to abandon any patent applications or patents included as a Licensed Patent, as further described in Sections 2.9(a) and 2.9(b).

 

 

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(a)     Foreign Filing in the Eontec Exclusive Territory. LMT shall, at its own expense, be responsible for the filing, prosecution, and maintenance of the LMT Licensed Patents. LMT will keep Eontec informed with respect to changes in status of any LMT Licensed Patents in the Eontec Exclusive Territory, and will, upon request by Eontec, provide a current status of any of the LMT Licensed Patents in the Eontec Exclusive Territory. In the event that LMT elects to abandon or not pursue any LMT Licensed Patents in the Eontec Exclusive Territory by not taking an action for which there is a deadline (e.g., a response deadline, a maintenance fee or annuity deadline, a foreign filing deadline, etc.), LMT shall inform Eontec at least sixty (60) days prior to the such deadline, in which case Eontec may take over responsibility for such LMT Licensed Patents at its own expense and using patent counsel of its choice. For example, in a case where LMT has filed a first patent application in a first jurisdiction (e.g., the United States) and there is an impending deadline for filing any corresponding applications in other jurisdictions, LMT shall notify Eontec at least sixty (60) days prior to such deadline of the countries in the Eontec Exclusive Territory in which LMT will pursue patent protection so as to provide Eontec an opportunity to notify LMT of its election to pursue protection in other countries within the Eontec Exclusive Territory where LMT will not pursue protection.

 

(b)     Foreign Filing in the LMT Exclusive Territory. Eontec shall, at its own expense, be responsible for the filing, prosecution, and maintenance of the Eontec Licensed Patents. Eontec will keep LMT informed with respect to changes in status of any Eontec Licensed Patents in the LMT Exclusive Territory, and will, upon request by LMT, provide a current status of any of the Eontec Licensed Patents in the LMT Exclusive Territory. In the event that Eontec elects to abandon or not pursue any Eontec Licensed Patents in the LMT Exclusive Territory by not taking an action for which there is a deadline (e.g., a response deadline, a maintenance fee or annuity deadline, a foreign filing deadline, etc.), Eontec shall inform LMT at least sixty (60) days prior to the such deadline, in which case LMT may take over responsibility for such Eontec Licensed Patents at its own expense and using patent counsel of its choice. For example, in a case where Eontec has filed a first patent application in a first jurisdiction (e.g., the United States) and there is an impending deadline for filing any corresponding applications in other jurisdictions, Eontec shall notify LMT at least sixty (60) days prior to such deadline of the countries in the LMT Exclusive Territory in which Eontec will pursue patent protection so as to provide LMT an opportunity to notify Eontec of its election to pursue protection in other countries within the LMT Exclusive Territory where Eontec will not pursue protection.

 

2.10.     Other Covenants. Each party, in its capacity as a Licensee, will not (and will cause its permitted sublicensees not to) institute or actively participate as an adverse party in, or otherwise provides material support to, any action, suit or other proceeding to invalidate or limit the scope of any Licensed Patent claim or obtain a ruling that any Licensed Patent claim is unenforceable or not patentable. In addition, neither party will (and each will cause its permitted sublicenses not to) engage in any activity, or lend material support to any activity, anywhere in the world, that would constitute a violation of the Intellectual Property rights of the other party.

 

 

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2.11.     Enforcement of Rights.

 

(a)     Infringement in Non-Exclusive Territories. 

 

(i)     Subject to Section 2.11(a)(iii) below, Licensor has the sole right and discretion to prevent or abate any actual or threatened misappropriation or infringement and attempt to resolve any claims relating to the Licensor’s Licensed Patents, Licensed Trademarks and Licensed Technical Information in the Non-Exclusive Territories, including by (a) prosecuting or defending any opposition, derivation, interference, declaratory judgment, federal district court, US International Trade Commission or other proceeding of any kind, and (b) taking any other lawful action that Licensor, in its sole discretion, believes is reasonably necessary, to protect, enforce or defend any Licensed Patent, Licensed Trademark or Licensed Technical Information in the Non-Exclusive Territories. Licensor has the right to prosecute or defend any such proceeding in Licensor's own name or, if required by applicable law or otherwise necessary or desirable for such purposes, in the name of Licensee and may join Licensee as a party. Licensor shall bear its own costs and expenses in all such proceedings and have the right to control the conduct thereof and be represented by counsel of its own choice therein. 

 

(ii)     Each party in its capacity as a Licensee shall and hereby does irrevocably and unconditionally waive any objection to Licensor's joinder of Licensee to any proceeding described in Section 2.11(a) on any grounds whatsoever, including on the grounds of personal jurisdiction, venue or forum non conveniens. If Licensor brings or defends any such proceeding, Licensee shall cooperate in all respects with Licensor in the conduct thereof, and assist in all reasonable ways, including having its employees testify when requested and make available for discovery or trial exhibit relevant records, papers, information, samples, specimens, and the like, subject to Licensor's reimbursement of any out-of-pocket expenses incurred on an on-going basis by Licensee in providing Licensee such assistance.

 

(iii)     Notwithstanding anything in this Agreement to the contrary, in order to comply with Section 2.6 of the Crucible License Agreement (as defined below), LMT and Eontec (and their permitted sublicensees, successors, and assigns) hereby grant to Crucible and reserve for Crucible (A) the right to take any and all actions necessary to defend the LMT Technology (as defined below) in any litigation or administrative proceedings in which Eontec or any permitted sublicensee, successor, or assign is a party and (B) the right to take any and all actions necessary to defend the LMT Technology in any ligiation or administrative proceedings in which Eontec or any permitted sublicensee, successor, or assign is a party. Crucible is an intended third-party beneficiary of this paragraph. For purposes of this paragraph, the term “Crucible” means Crucible Intellectual Property, LLC, a Delaware limited liability company, and “Crucible License Agreement” means the Exclusive License Agreement, dated August 5, 2010, between LMT and Crucible. Solely for purposes of this paragraph and not for any other purpose in this Agreement, “LMT Technology” has the meaning set forth in the Master Transaction Agreement, dated August 5, 2010, among Apple Inc., LMT, Crucable, and Liquidmetal Coatings, LLC, as amended.

 

(b)     Infringement in the Eontec Exclusive Territory. Eontec shall have the sole right to prevent or abate any actual or threatened misappropriation or infringement and attempt to resolve any claims relating to the LMT Licensed Patents, LMT Licensed Trademarks and LMT Licensed Technical Information in the Eontec Exclusive Territory, including by (a) prosecuting or defending any opposition, derivation, interference, declaratory judgment, federal district court, US International Trade Commission or other proceeding of any kind, and (b) taking any other lawful action that Eontec, in its sole discretion, believes is reasonably necessary, to protect, enforce or defend any LMT Licensed Patent, LMT Licensed Trademark or LMT Licensed Technical Information in the Eontec Exclusive Territory. LMT agrees to join as a party plaintiff in any such lawsuit initiated by Eontec and to cooperate with Eontec in Eontec’s prosecution, if requested by Eontec, with all reasonable costs, attorney fees, and expenses to be paid by Eontec. 

 

 

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(c)     Infringement in the LMT Exclusive Territory. LMT shall have the sole right to prevent or abate any actual or threatened misappropriation or infringement and attempt to resolve any claims relating to the Eontec Licensed Patents, Eontec Licensed Trademarks and Eontec Licensed Technical Information in the LMT Exclusive Territory, including by (a) prosecuting or defending any opposition, derivation, interference, declaratory judgment, federal district court, US International Trade Commission or other proceeding of any kind, and (b) taking any other lawful action that Eontec, in its sole discretion, believes is reasonably necessary, to protect, enforce or defend any Eontec Licensed Patent, Eontec Licensed Trademark or Eontec Licensed Technical Information in the LMT Exclusive Territory. Eontec agrees to join as a party plaintiff in any such lawsuit initiated by LMT and to cooperate with LMT in LMT’s prosecution, if requested by LMT, with all reasonable costs, attorney fees, and expenses to be paid by LMT.

 

(d)     Recovery. Each Licensee shall be entitled to any recovery of damages resulting from a lawsuit brought by it pursuant to Sections 2.11(d) and (e). Licensor shall be entitled to recovery of damages resulting from any lawsuit brought by Licensor to enforce any Licensed Patent, Licensed Trademark or Licensed Technical Information, pursuant to Section 2.11(a).

 

 

 

ARTICLE 3

 

TRADEMARK LICENSE Grant

 

3.1.     Trademark License Grant to Eontec. Upon the terms and conditions set forth herein (including the termination provisions in Article 7 hereof) and subject to the Field of Use Restrictions, LMT hereby grants to Eontec and its Affiliates a perpetual royalty-free, fully paid up, non-transferable license (or sublicense, as the case may be, to the extent permitted under this Agreement) to use the LMT Licensed Trademarks in the Eontec Exclusive Territory and Non-Exclusive Territories solely in connection with the marketing and sale of the Eontec Licensed Products in the Eontec Field. Such license will be exclusive to Eontec (including to the exclusion of LMT and its Affiliates) in the Eontec Exclusive Territory and shall be non-exclusive in the Non-Exclusive Territories. Eontec and its permitted sublicensees hereunder will comply with the following restrictions with respect to its use of the LMT Licensed Trademarks: (i) all stylized use of the LMT Licensed Trademarks shall be solely in the original logotype identified by LMT, except as otherwise agreed in writing by LMT, (ii) the LMT Licensed Trademarks will not be affixed to products other than the Eontec Licensed Products, (iii) Eontec and its permitted sublicensees will not utilize the LMT Licensed Trademarks to refer to any materials other than amorphous metal alloys or composite materials included within the technology licensed by LMT hereunder, (iv) Eontec and any permitted sublicensee agrees not to modify LMT Licensed Trademarks or change the appearance of any stylized or logo form of the LMT Licensed Trademarks, (v) Eontec and all permitted sublicensees will comply with any reasonable trademark usage guidelines or restrictions that may be promulgated and delivered to Eontec in writing, and (vi) Eontec and any permitted sublicensee agrees not to take any other action that would be reasonably expected to undermine the enforceability of the LMT Licensed Trademarks. 

 

 

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3.2     Trademark License Grant to LMT. Upon the terms and conditions set forth herein (including the termination provisions in Article 7 hereof) and subject to the Field of Use Restrictions, Eontec hereby grants to LMT and its Affiliates, a perpetual, royalty-free, fully paid up, non-transferable license (or sublicense, as the case may be, to the extent permitted under this Agreement) to use the “Eontec” trademark in the LMT Exclusive Territory and Non-Exclusive Territories solely in connection with the marketing and sale of the Eontec Licensed Products in the LMT Field. Such license shall be exclusive to LMT (including to the exclusive of Eontec and its Affiliates) in the LMT Exclusive Territory and shall be non-exclusive in the Non-Exclusive Territories. LMT and its permitted sublicensees hereunder will comply with the following restrictions with respect to its use of the Eontec Licensed Trademarks: (i) all stylized use of the Eontec Licensed Trademarks shall be solely in the original logotype identified by Eontec, except as otherwise agreed in writing by Eontec, (ii) the Eontec Licensed Trademarks will not be affixed to products other than the LMT Licensed Products, (iii) LMT and its permitted sublicensees will not utilize the Eontec Licensed Trademarks to refer to any materials other than amorphous metal alloys or composite materials included within the technology licensed by Eontec hereunder, (iv) LMT and any permitted sublicensee agrees not to modify Eontec Licensed Trademarks or change the appearance of any stylized or logo form of the Eontec Licensed Trademarks, (v) LMT and all permitted sublicensees will comply with any reasonable trademark usage guidelines or restrictions that may be promulgated and delivered to LMT in writing, and (vi) LMT and any permitted sublicensee agrees not to take any other action that would be reasonably expected to undermine the enforceability of the Eontec Licensed Trademarks.

 

3.3 Registration and Maintenance of Trademarks. Licensor shall seek, obtain and, during the Term of this Agreement, maintain in its own name and at its own expense, appropriate protection for the Trademarks in the Exclusive and Non-Exclusive Territories. In the event that Licensor does not seek or obtain trademark protection for a particular item in the Licensee’s Exclusive Territory for which Licensee believes such protection is necessary, Licensee, at its own expense, shall have the right to seek such protection in the name of Licensor in Licensee’s Exclusive Territory in the name of Licensor.

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

 

4.1.     Representations and Warranties by Eontec. Eontec hereby represents and warrants to LMT as follows:

 

(a)     Eontec or its Affiliates owns or possesses the requisite licenses or rights to use the Eontec Licensed Patents and Eontec Licensed Technical Information, and to grant the licenses granted herein, free and clear of all liens, claims, and encumbrances.

 

 

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(b)     None of the Eontec Licensed Patents or Eontec Licensed Technical Information infringes or results from the misappropriation of any Intellectual Property of any third person.

 

(c)     Eontec is a corporation duly organized, validly existing and in good standing under the laws of the Peoples Republic of China and has all requisite corporate or similar power and authority to enter into this Agreement and to carry out and perform its obligations hereunder. All company action on the part of Eontec and its officers, directors, or stockholders necessary for the authorization, execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby has been taken. Assuming that this Agreement constitute the legal, valid and binding agreements of LMT, this Agreement constitutes or will when executed, as applicable, constitute a legal, valid and binding obligation of Eontec, enforceable against Eontec in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or fraudulent conveyance and similar laws relating to or affecting creditors generally or by general equity principles, including without limitation concepts of materiality, reasonableness, good faith and fair dealing (regardless of whether considered in a proceeding in equity or at law).

 

4.2.     Representations and Warranties by LMT. LMT hereby represents and warrants to Eontec as follows:

 

(a)     LMT or its Affiliates owns or possesses the requisite licenses or rights to use the LMT Licensed Patents and LMT Licensed Technical Information, and to grant the licenses granted herein, free and clear of all liens, claims, and encumbrances.

 

(b)     None of the LMT Licensed Patents or LMT Licensed Technical Information infringes or results from the misappropriation of any Intellectual Property of any third person.

 

(c)     LMT is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate or similar power and authority to enter into this Agreement and to carry out and perform its obligations hereunder. All company action on the part of LMT and its officers, directors, or stockholders necessary for the authorization, execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby has been taken. Assuming that this Agreement constitute the legal, valid and binding agreements of Eontec, this Agreement constitutes or will when executed, as applicable, constitute a legal, valid and binding obligation of LMT, enforceable against LMT in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or fraudulent conveyance and similar laws relating to or affecting creditors generally or by general equity principles, including without limitation concepts of materiality, reasonableness, good faith and fair dealing (regardless of whether considered in a proceeding in equity or at law).

 

 

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ARTICLE 5

TECHNOLOGY DEVELOPMENT AND DERIVATIVES

 

5.1.     Technology Development. The Parties will work together to jointly improve and further develop the Technologies for a period of five (5) years (“Joint Development Period”). The scope and nature of such joint efforts, and the respective responsibilities of the parties in connection therewith, will be set forth in one or more mutually agreeable development agreements or other similar agreements to be entered into by the Parties (“Development Agreements”). 

 

5.2.     Improvements and Derivatives. Unless otherwise specified in the applicable Development Agreement, all improvements and further developments of the Technologies by the parties during the Joint Development Period (“Derivative Technologies”) will be owned and licensed as follows: (i) technologies developed solely by one party will be owned by that party, but shall be included as a Licensed Patent or Licensed Technical Information (as the case may be) hereunder, and (ii) technologies developed jointly by the Parties will be jointly owned by the Parties but shall be included as a Licensed Patent or Licensed Technical Information (as the case may be) hereunder. Notwithstanding the foregoing, all derivatives of a party’s Trademarks shall be owned exclusively by that party.

 

 

 

ARTICLE 6

NO WARRANTIES

 

EXCEPT FOR THE SPECIFIC PROVISIONS OF THIS AGREEMENT, EACH PARTY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES REGARDING THE TECHNOLOGY LICENSED HEREUNDER, WHETHER EXPRESS, IMPLIED, STATUTORY, OR ARISING OUT OF CUSTOM OR TRADE USAGE, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. NOTHING IN THIS AGREEMENT SHALL BE DEEMED TO BE A REPRESENTATION OR WARRANTY BY LICENSOR OF THE ACCURACY, SAFETY, OR USEFULNESS FOR ANY PURPOSE OF ANY TECHNICAL INFORMATION, TECHNIQUES, OR PRACTICES AT ANY TIME MADE AVAILABLE BY LICENSOR. NO ORAL OR WRITTEN INFORMATION OR ADVICE GIVEN BY LICENSOR OR LICENSOR’S AUTHORIZED REPRESENTATIVES SHALL CREATE A WARRANTY OR REPRESENTATION. THIS SECTION SHALL BE ENFORCEABLE TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW.

 

IN NO EVENT SHALL A PARTY BE LIABLE TO THE OTHER PARTY UNDER THIS AGREEMENT OR ANY THIRD PARTY FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, ANY INDIRECT, SPECIAL, PUNITIVE, OR EXEMPLARY DAMAGES FOR LOSS OF BUSINESS, LOSS OF PROFITS, LOSS OF REVENUES, BUSINESS INTERRUPTION, LOSS OF SOFTWARE, LOSS OF DATA, LOSS OF BUSINESS INFORMATION, THE INADEQUACY OF THE LICENSED MATERIALS FOR ANY PURPOSE, OR ANY OTHER ITEM) RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT.

 

 

12

 

 

ARTICLE 7

TERM

 

7.1.     Term. The term of this Agreement commences on the Effective Date and shall continue in perpetuity unless the Parties mutually agree to terminate the Agreement or unless terminated earlier as set forth below. 

 

7.2.     Termination by Eontec. Eontec may terminate this Agreement upon written notice to LMT upon any of the following events:

 

(a)     In the event LMT fails to increase the authorized shares of common stock to 1,100,000,000 by May 31, 2016; or

 

(b)     LMT commits a material breach of this Agreement, the Purchase Agreement, or any other agreement to which Eontec (or its Affiliates) and LMT (or its Affiliates) are a party and fails to cure said breach within fifteen (15) Business Days of delivery of written notice of breach by Eontec to LMT.

 

7.3.     Termination by LMT. LMT may terminate this Agreement upon written notice to Eontec upon any of the following events:

 

(a)     Liquidmetal Technology Limited, a Hong Kong corporation, (or any permitted successor or assign) fails to purchase the Second Closing Shares and Third Closing Shares (as those terms are defined in the Purchase Agreement) when required to do so under the terms of the Purchase Agreement; or

 

(b)     Eontec commits a material breach of this Agreement, the Purchase Agreement, or any other agreement to which Eontec (or its Affiliates) and LMT (or its Affiliates) are a party and fails to cure said breach within fifteen (15) Business Days of delivery of written notice of breach by LMT to Eontec; or

 

(c)     Liquidmetal Technology Limited (or any permitted successor or assign) exercises the Put Right (as defined in the Purchase Agreement).

 

7.4.     Effect of Termination. Within fifteen (15) Business Days after termination or expiration of this Agreement, each party shall: (a) immediately cease all activities concerning, including all practice and use of, the Intellectual Property that is licensed hereunder; (b) either return to each other all documents and tangible materials (and any copies) containing, reflecting, incorporating or based on Licensor's Confidential Information; or (ii) permanently erase such Confidential Information from its computer systems; and (c) certify in writing to the other party that it has complied with the requirements of Section 6.4(b). The rights and obligations of the parties set forth in this Section 6.4 and in Article 1 (Definitions), Section 4.2 (Improvements and Derivatives), Article 7 (Confidentiality), and Articles 8 (Miscellaneous), and any right, obligation or required performance of the Parties in this Agreement which, by its express terms or nature and context is intended to survive termination or expiration of this Agreement, shall survive any such termination or expiration.

 

 

13

 

 

ARTICLE 8

CONFIDENTIALITY

 

8.1.     Terms of Agreement. Each party agrees not to disclose any terms of this Agreement to any third party without the consent of the other party; provided, however, that disclosures may be made as required by securities or other applicable laws; or by either party to its accountants, attorneys, and other professional advisors. 

 

8.2.     Restrictions on Disclosure and Use.

 

(a)     Restrictions and Covenants. Except as otherwise provided herein, each party agrees that, in its capacity as the Recipient of Confidential Information, it will (i) hold the Discloser’s Confidential Information in strict confidence, use a high degree of care in safeguarding the Discloser’s Confidential Information, and take all precautions necessary to protect the Discloser’s Confidential Information including, at a minimum, all precautions the Recipient normally employs with respect to its own Confidential Information, (ii) not divulge any of the Discloser’s Confidential Information or any information derived therefrom to any other person (except as set forth in Section 7.2.2 (Disclosure to Representatives) hereof), (iii) not make any use whatsoever at any time of the Discloser’s Confidential Information except as is necessary in the performance of Recipient’s specific duties under this Agreement, (iv) not copy, reverse engineer, alter, modify, break down, melt down, disassemble or transmit any of the Discloser’s Confidential Information, (v) not, within the meaning of United States or other export control laws or regulations, export or re-export, directly or indirectly, including but not limited to export on the Internet or other network service, any of the Discloser’s Confidential Information, (vi) notify the Discloser in writing immediately upon discovery by the Recipient or its Representatives of any unauthorized use or disclosure of the Discloser’s Confidential Information, and (vii) upon the termination or expiration of this Agreement, immediately return to the Discloser or destroy (at the option of the Recipient) all such Confidential Information, including all originals and copies.

 

(b)     Disclosure to Representatives. The Recipient may only disseminate the Discloser’s Confidential Information to its Representatives who have been informed of the Recipient’s obligations under this Agreement and are bound by an obligation of confidentiality and non-use with respect to the Discloser’s Confidential Information at least as broad in scope as the Recipient’s obligations under this Agreement. The Recipient agrees to reasonably restrict disclosure of the Discloser’s Confidential Information to the smallest number of the Recipient’s Representatives which have a need to know the Confidential Information. The Recipient shall be responsible for enforcing this Agreement as the Recipient’s Representatives and shall take such action (legal or otherwise) to the extent necessary to cause them to comply with this agreement.

 

(c)     Trade Secrets. Any trade secrets of the Discloser will also be entitled to all of the protections and benefits of applicable trade secret law, and the Recipient agrees to be bound by all applicable trade secret laws, unfair competition laws, and any other similar laws with respect to the Discloser’s Confidential Information. If any Confidential Information that the Discloser deems to be a trade secret is found by a court of competent jurisdiction not to be a trade secret under applicable law, such Confidential Information will nevertheless still be protected by this Agreement.

 

 

14

 

 

(d)     Protection of Licensed Technical Information by Licensee. Licensee acknowledges and agrees that the Licensed Technical Information derives economic value from not being generally known to other persons who can obtain economic value from its disclosure or use. Therefore, without the express written consent of Licensor, Licensee covenants and agrees that it, its employees, contractors, representatives, successors, assigns, Affiliates, parents, subsidiaries, officers, directors, and the like will (i) hold the Licensed Technical Information in strict confidence, use a high degree of care in safeguarding the Licensed Technical Information, and take all precautions reasonably necessary to protect the Licensed Technical Information including, without limitation, all precautions Licensee normally takes with respect to its own most sensitive and confidential information, (ii) not divulge any of the Licensed Technical Information or any information derived therefrom to any person other than Licensor, (iii) not make any use whatsoever at any time of the Licensed Technical Information except in furtherance of Licensee’s obligations to Licensor and as necessary to produce Licensed Products in accordance with the license granted under this Agreement, (iv) not, within the meaning of United States or other export control laws or regulations, export or re-export, directly or indirectly, including but not limited to export on the Internet or other network service, any of the Licensed Technical Information, and (v) notify Licensor in writing immediately upon discovery of any unauthorized use or disclosure of the Licensed Technical Information by Licensee or its employees or any third party.

 

(e)     Enforcement. Licensee acknowledges and agrees that due to the unique nature of the Licensed Technical Information and other Confidential Information of Licensor, there can be no adequate remedy at law for any breach of its obligations hereunder, which breach may result in irreparable harm to Licensor, and therefore, that upon any such breach or any threat thereof, Licensor shall be entitled to appropriate equitable relief, including injunction, without the requirement of posting a bond, in addition to whatever remedies it might have at law.

 

(f)     Exceptions. The restrictions of the Recipient’s disclosure and use of the Discloser’s Confidential Information under this Section 7.2 will not apply to the extent of any Confidential Information:

 

(i)     that becomes publicly known without breach of the Recipient’s or its Representatives’ obligations under this Agreement;

 

(ii)     that is rightfully acquired by Recipient from a third party which is not subject to any restriction or obligation (whether contractual, fiduciary, or otherwise) on disclosure or use of such Confidential Information;

 

(iii)     that is independently developed by employees of the Recipient without knowledge of or reference to such Confidential Information, as evidenced by written documentation or other tangible evidence of Recipient;

 

 

15

 

 

(iv)     that is required to be disclosed by law or by court order or government order, provided that the Recipient (a) promptly notifies the Discloser of any such disclosure requirement so that the Discloser may seek an appropriate protective order (or other appropriate protections) and (b) provides reasonable assistance (at no cost to the Recipient) in obtaining such protective order or other form of protection; or

 

(v)     as to which and to the extent to which the Recipient has received express written consent from an authorized officer of the Discloser to disclose or use.

 

8.3.     Third Party Information. Each party represents and warrants to the other that it is free to divulge, without any obligation to or violation of the rights of any third party, any and all information which it will demonstrate, divulge, or in any other manner make known to the other pursuant to this Agreement. Each party shall indemnify and hold harmless the other from and against any and all liability, loss, cost, expense, damage, claim or demand for actual violation of the rights of any third party in any trade secret, proprietary know-how, or other confidential information by reason of the other party’s receipt of information disclosed hereunder. The foregoing provision shall not be construed to affect or diminish the obligations of confidentiality and non-disclosure of the parties as provided in this Article 7.

 

ARTICLE 9

MISCELLANEOUS

 

9.1.     All notices or other information deemed required or necessary to be given to any of the parties shall be given in the English language at the following addresses:

 

	
 
	
Eontec:
	
DongGuan Eontec Co., Ltd.

	
 
	
 
	
Yin Quan Industrial District

	
 
	
 
	
Qing Xi, DongGuan, China

	
 
	
 
	
Attention:______________

	
 
	
 
	
Fax:___________________

	
 
	
 
	
Email:__________________

	
 
	
 
	
 

	
 
	
Liquidmetal Technologies:  
	
Thomas Steipp, CEO

	
 
	
 
	
Liquidmetal Technologies, Inc.

	
 
	
 
	
30452 Esperanza

	
 
	
 
	
Rancho Santa Margarita, CA 92688

	
 
	
 
	
Attention: Thomas Steipp, CEO

	
 
	
 
	
Telephone: (949) 635-2100

	
 
	
 
	
Facsimile: (949) 635-2188

	
 
	
 
	
Email: tom.steipp@liquidmetal.com

 

Notices sent in accordance with this Section 8.1 shall be deemed effectively given: (a) when received, if delivered by hand (with written confirmation of receipt); (b) when received, if sent by a U.S. nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail (in each case, with confirmation of transmission), if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient.

 

 

16

 

 

9.2.     This Agreement shall be governed by the laws of the State of New York, without reference to its conflicts of law principles. Each of the parties: (i) agrees that any legal suit, action or proceeding arising out of or relating to this Agreement shall be instituted exclusively in New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, (ii) waives any objection which it may have or hereafter to the venue of any such suit, action or proceeding, and (iii) irrevocably consents to the jurisdiction of the New York Supreme Court, County of New York, and the United States District Court for the Southern District of New York in any such suit, action or proceeding.

 

9.3.     Each party acknowledges that any breach of this Agreement by it may cause irreparable harm to the other party and that the remedies for breach may include injunctive relief against such breach, in addition to damages and other available remedies. The prevailing party shall be entitled to the award of its reasonable attorney’s fees in any action to enforce this Agreement.

 

9.4.     This Agreement, including any recitals, terms, conditions, and provisions herein, and all exhibits attached hereto and referenced herein, constitutes the entire agreement between the parties relating to the subject matter hereof and supersedes and cancels all other prior agreements and understanding of the parties in connection with subject matter. The headings or titles in this Agreement are for purposes of reference only and shall not in any way affect the interpretation or construction of this Agreement.

 

9.5.     No waiver of any of the provisions of this Agreement shall be valid unless in a written document, signed by the party against whom such a waiver is sought to be enforced, nor shall failure to enforce any right hereunder constitute a continuing waiver of the same or a waiver of any other right hereunder. All amendments of this Agreement shall be made in writing and signed by both parties, and no oral amendment shall be binding on the parties.

 

9.6.     The Parties have had the opportunity to negotiate the terms of this Agreement, and no Party shall be deemed the drafter of all or any portion of this Agreement for purposes of interpretation. The terms of this Agreement shall be binding and shall be strictly construed in any proceeding relating or pertaining to this Agreement. Without affecting the obligations of the Parties otherwise expressed, the term “shall” when used in connection with any act or obligation to be undertaken means an affirmative obligation. The term “including” shall mean “including but not limited to.” All terms shall be construed in the masculine or feminine and in plural or singular as required by the context in which the term is used. The definitions of terms in this Agreement are limited to this Agreement.

 

9.7.     If any one or more of the provisions of this Agreement is held to be invalid, illegal, or unenforceable in any respect, the other provisions shall remain in full force and effect. Any provision deemed invalid, illegal, or unenforceable because its scope is considered excessive shall be modified only to the minimum extent necessary to render the provision valid, legal, and enforceable under New York law.

 

 

17

 

 

9.8.     This Agreement is for the sole benefit of the Parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Agreement. Neither party may assign its rights or duties under this Agreement without the prior written consent of the other party.

 

9.9.     Each party in its capacity as a Licensee shall indemnify and hold harmless Licensor and its Affiliates, and each of Licensor's and its Affiliates' respective officers, directors, employees, agents, successors and assigns, against all losses, claims, damages, or expenses (including reasonable attorney’s fees) arising out of or resulting from any third party claim, suit, action or other proceeding related to or arising out of or resulting from (a) Licensee's breach of any representation, warranty, covenant or obligation under this Agreement, or (b) use by Licensee or its permitted sublicensee’s of Licensed Patents or Licensed Technical Information, or (c) any use, sale, transfer or other disposition by Licensee or its permitted Sublicensees of Licensed Products or any other products made by use of Licensed Patents or Licensed Technical Information.

 

9.10.     This Agreement may be executed simultaneously in counterparts, by facsimile signature or other means of electronic transmission (to which a .pdf copy is attached) or otherwise, each of which will be deemed an original, but all of which together will constitute the same Agreement. This Agreement is written in the English language, and if either party translates this Agreement into a language other than English, the Parties agree that the English language version of this Agreement will control. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. 

 

[signatures follow]

 

 

18

 

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date set forth above 

 

	
 
	
DONGGUAN EONTEC CO., LTD.
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Lugee Li
	
 

	 	 	 	 
	
 
	
Name: 
	
Lugee Li
	
 

	 	 	 	 
	
 
	
Title: 
	
CEO
	
 

 

 

	
 
	
LIQUIDMETAL TECHNOLOGIES, INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Thomas Steipp
	
 

	
 
	
 
	
 
	
 

	 	Name: 	Thomas Steipp	 
	 	 	 	 
	
 
	
Title:
	
President and CEO
	
 

  

 

19

 

 

APPENDIX A

 

List of LMT Licensed Patents and Trademarks

 

U.S. Patent No. 5,711,363 – Die-Casting of Bulk-Solidifying Amorphous Alloys, Issued 1/27/1998

 

U.S. Patent No. 5,735,975– Quinary metallic glass alloys, Issued 4/7/1998

 

U.S. Patent No. 5,772,803 – Torsionally Reacting Spring Made of a Bulk-Solidifying Amorphous Metallic Alloy, Issued 6/30/1998

 

U.S. Patent No. 5,797,443 – Method of Casting Articles of a Bulk-Solidifying Amorphous Alloy, Issued 8/25/1998

 

U.S. Patent No. 5,896,642 – Die-Formed Amorphous Metallic Articles and Their Fabrication (Die-Forming (Molding) of Bulk Alloys), Issued 4/27/1999

 

U.S. Patent No. 5,950,704 - Replication of Surface Features from a Master Model to an Amorphous Metallic Article (Replication with Bulk Alloys), Issued 9/14/1999

 

U.S. Patent No. 6,010,580 – Composite Penetrator (Composite Kinetic Energy Penetrator), Issued 1/4/2000

 

U.S. Patent No. 6,021,840 – Vacuum Die Casting of Amorphous Alloys, Issued 2/8/2000

 

U.S. Patent No. 6,446,558 – Shaped-Charge Projectile Having an Amorphous-Matrix Composite shaped-Charge Liner, Issued 9/10/2002

 

U.S. Patent No. 6,682,611 – Formation of Zr-Based Bulk Metallic Glasses from Low Purity by Yttrium Addition (Chinese Group), Issued 1/27/2004

 

U.S. Patent No. 6,771,490 - Metal Frame for Electronic Hardware and Flat Panel Displays, Issued 8/3/2004

 

U.S. Patent No. 6,818,078 - Joining of Amorphous Metals to Other Metals Utilizing a Cast Mechanical Joint (Joining by Casting), Issued 11/16/2004

 

U.S. Patent No. 6,843,496 - Amorphous Alloy Gliding Boards, Issued 1/18/2005

 

U.S. Patent No. 6,875,293 - Method of Forming Molded Articles of Amorphous Alloy with High Elastic Limit, Issued 4/5/2005

 

U.S. Patent No. 6,887,586 - Sharp-Edged Cutting Tools, Issued 5/3/2005

 

U.S. Patent No. 7,008,490 - Method of Improving Bulk-Solidifying Alloy Compositions and Cast Articles Made of the Same (Improving Bulk Alloys), Issued 3/7/2006

 

U.S. Patent No. 7,017,645 - Thermoplastic Casting of Amorphous Alloys (TPC), Issued 3/28/2006

 

 

1

 

 

U.S. Patent No. 7,073,560 - Foamed Structures of Bulk-Solidifying Amorphous Alloys (Foamed Structures), Issued 7/11/2006

 

U.S. Patent No. 7,157,158 - Encapsulated Ceramic Armor, Issued 1/2/2007

 

U.S. Patent No. 7,293,599 - Investment Casting of Bulk-Solidifying Amorphous Alloys, Issued 11/13/2007

 

U.S. Patent No. 7,500,987 – Amorphous Alloy Stents, Issued 3/10/2009

 

U.S. Patent No. 7,520,944 - Method of Making In-Situ Composites Comprising Amorphous Alloys, Issued 3/21/2009

 

U.S. Patent No. 7,560,001 - Method of Making Dense Composites of Bulk-Solidifying Alloys and Articles Thereof, Issued 7/14/2009

 

U.S. Patent No. 7,575,040 - Continuous Casting of Bulk Solidifying Amorphous Alloys, Issued 8/18/2009

 

U.S. Patent No. 7,582,172 - Pt-Base Bulk Solidifying Amorphous Alloys, Issued 9/1/2009

 

U.S. Patent No. 7,588,071 - Continuous Casting of Foamed Bulk Amorphous Alloys, Issued 9/15/2009

 

U.S. Patent No. 7,604,876 - Encapsulated Ceramic Armour, Issued 10/20/2009

 

U.S. Patent No. 7,618,499 - Fe-Base In-Situ Composite Alloys Comprising Amorphous Phase, Issued 11/17/2009

 

U.S. Patent No. 7,621,314 - Method of Manufacturing Amorphous Metallic Foam, Issued 11/24/2009

 

U.S. Patent No. 7,862,957 - Current Collector Plates Made of Bulk-Solidifying Amorphous Alloys, Issued 1/4/2011

 

U.S. Patent No. 7,896,982 - Bulk Solidifying Amorphous Alloys with Improved Mechanical Properties, Issued 3/1/2011

 

U.S. Patent No. 8,002,911 - Metallic Dental Prostheses Made of Bulk-Solidifying Amorphous Alloys and Method of Making Such Articles, Issued 8/23/2011

 

U.S. Patent No. 8,063,843 - Antenna Structures Made of Bulk Solidifying Amorphous Alloys, Issued 11/22/2011

 

U.S. Patent No. 8,197,615 - Amorphous Alloy Hooks and Methods of Making Such Hooks, Issued 6/12/2012

 

U.S. Patent No. 8,325,100 - Antenna Structures Made of Bulk-Solidifying Amorphous Alloys (Continuation), Issued 12/4/2012

 

 

2

 

 

U.S. Patent No. 8,431,288 - Current Collector Plates Made of Bulk-Solidifying Amorphous Alloys, Issued 4/30/2013

 

U.S. Patent No. 8,445,161 - Current Collector Plates Made of Bulk-Solidifying Amorphous Alloys, Issued 5/21/2013

 

U.S. Patent No. 8,459,331 – Vacuum Mold, Issued 6/11/2013

 

U.S. Patent No. 8,485,245 - Bulk Amorphous Alloy Sheet Forming Processes, Issued 7/16/2013

 

U.S. Patent No. 8,501,087 - Au-Base Bulk Solidifying Amorphous Alloys, Issued 8/6/2013

 

U.S. Patent No. 8,679,266 - Objects Made of Bulk-Solidifying Amorphous Alloys and Method of Making the Same, Issued 3/25/2014

 

U.S. Patent No. 8,813,813 - Continuous Amorphous Feedstock Skull Melting, Issued 8/26/2014

 

U.S. Patent No. 8,813,814 - Optimized Multi-Stage Inductive Melting of Amorphous Alloys, Issued 8/26/2014

 

U.S. Patent No. 8,828,155 - Bulk Solidifying Amorphous Alloys with Improved Mechanical Properties, Issued 9/9/2014

 

U.S. Patent No. 8,830,134 - Antenna Structures Made of Bulk-Solidifying Amorphous Alloys (Continuation), Issued 9/9/2014

 

U.S. Patent No. 8,858,868 – Temperature Regulated Vessel, Issued 10/14/2014

 

U.S. Patent No. 8,882,940 - Bulk Solidifying Amorphous Alloys with Improved Mechanical Properties, Issued 11/11/2014

 

U.S. Patent No. 8,927,176 - Current Collector Plates of Bulk-Solidifying Amorphous Alloys (Divisional), Issued 1/6/2015

 

U.S. Patent No. 8,936,664 - Crucible Materials for Alloying Materials, Issued 1/20/2015

 

U.S. Patent No. 8,944,140 - Squeeze Cast Molding System Suitable for Molding Amorphous Metals, Issued 2/3/2015

 

U.S. Patent No. 8,978,736 - Plunger with Removable Plunger Tip, Issued 3/17/2015

 

U.S. Patent No. 9,057,120 - Thermoplastic Forming Methods for Amorphous Alloys, Issued 6/16/2015

 

U.S. Patent No. 9,108,243 - Production of Large-Area Bulk Metallic Glass Sheets by Spinning, Issued 8/18/2015

 

U.S. Patent No. D563954 - Retractable Memory Stick, Issued 3/11/2008

 

 

3

 

 

U.S. Patent No. RE44,385 - Method of Making In-Situ Composites Comprising Amorphous Alloys, Issued 7/23/2013

 

U.S. Patent No. RE44,425 - Continuous Casting of Bulk Solidifying Amorphous Alloy, Issued 8/13/2013

 

U.S. Patent No. RE44,426 - Continuous casting of foamed bulk amorphous alloys, Issued 8/13/2013

 

U.S. Patent No. RE45,353 - Method of Making Dense Composites of Bulk-Solidifying Amorphous Alloys, Issued 1/27/2015

 

U.S. Patent No. RE45,414 - Continuous Casting of Bulk Solidifying Amorphous Alloys, Issued 3/17/2015

 

U.S. Patent No. RE45,658 - Method of Manufacturing Amorphous Metallic Foam, Issued 8/25/2015

 

U.S. Patent Application No. 10/524,954

 

U.S. Patent Application No. 10/565,839

 

U.S. Patent Application No. 11/577,052

 

U.S. Patent Application No. 12/984,440

 

U.S. Patent Application No. 12/984,433

 

U.S. Patent Application No. 13/408,824

 

U.S. Patent Application No. 13/408,730

 

U.S. Patent Application No. 12/615,097

 

U.S. Patent Application No. 13/494,804

 

U.S. Patent Application No. 13/636,032

 

U.S. Patent Application No. 13/704,537

 

U.S. Patent Application No. 13/945,176

 

U.S. Patent Application No. 13/532,233

 

U.S. Patent Application No. 14/174,206

 

U.S. Patent Application No. 14/237,089

 

U.S. Patent Application No. 14/348,399

 

U.S. Patent Application No. 14/348,390

 

U.S. Patent Application No. 14/348,404

 

 

4

 

 

U.S. Patent Application No. 14/345,883

 

U.S. Patent Application No. 14/359,060

 

U.S. Patent Application No. 14,345,159

 

U.S. Patent Application No. 13/939,939

 

U.S. Patent Application No. 13/940,051

 

U.S. Patent Application No. 13/939,995

 

U.S. Patent Application No. 14/480,357

 

U.S. Patent Application No. 14/374,803

 

U.S. Patent Application No. 14/350,498

 

U.S. Patent Application No. 14/537,384

 

U.S. Patent Application No. 14/828,302

 

U.S. Patent Application No. 12/805,807

 

U.S. Patent Application No. 14/266,934

 

U.S. Patent Application No. 14/572,126

 

U.S. Patent Application No. 14/572,066

 

U.S. Patent Application No. 14/572,107

 

LMT Licensed Trademarks

 

U.S. Trademark Registration No. 2312889, Registered 2/1/2000

 

U.S. Trademark Registration No. 3159720, Registered 10/17/2006

 

U.S. Trademark Registration No. 3230417, Registered 4/17/2007

 

U.S. Trademark Registration No. 4732528, Registered 5/5/2015

 

 

5

 

 

Appendix A1

 

Noninclusive List of LMT Licensed Patents and Trademarks in the Eontec Exclusive Territory

 

 

Chinese Publication No. CN 1239730, Metal Frame for Electronic Hardware and Flat Panel Displays

 

Chinese Publication No. CN 1295371, Method of Forming Molded Articles of Amorphous Alloy with High Elastic Limit

 

Chinese Publication No. CN 1578846, Method of Improving Bulk-Solidifying Alloy Compositions and Cast Articles Made of the Same

 

Chinese Publication No. CN 100372630, Thermoplastic Casting of Amorphous Alloys

 

Chinese Publication No. CN 100382939, Sharp-Edged Cutting Tools

 

Chinese Publication No. CN 101496223, Antenna Structures Made of Bulk Solidifying Amorphous Alloys

 

Chinese Publication No. CN 102791902, Nickel Based Thermal Spray Powder

 

Chinese Publication No. CN 102834533, Thermoplastic Forming Methods for Amorphous Alloys

 

Chinese Publication No. CN 102859024, Molybdenum-Containing Ferrous Alloy for Improved Thermal Spray Deposition Hard-Facing

 

Chinese Publication No. CN 102905843, Amorphous Alloy Interfacial Layer/Seal/Bonding

 

Chinese Publication No. CN 103722147, Unevenly Spaced Induction Coil for Molten Alloy Containment

 

Chinese Publication No. CN 103038378, Tin-Addition to Amorphous Alloy

 

Chinese Publication No. CN 103797138, Molding and Separating of Bulk-Solidifying Amorphous Alloys and Composite Containing Amorphous Alloy

 

Chinese Publication No. CN 103814143, Nano- and Micro-Replication for Authentication and Texturization

 

Chinese Publication No. CN 103827048, Crucible Materials for Alloying Materials

 

 

6

 

 

Chinese Publication No. CN 103946406, Alloying Technique for Fe-Based Bulk Amorphous Alloy

 

Chinese Publication No. CN 103958719, Tamper Resistant Amorphous Alloy Joining 

 

Chinese Publication No. CN 103974790, Containment Gate for Inline Temperature Control Melting, 

 

Chinese Publication No. CN 103987871, Radiation Shielding Structures, 

 

Chinese Publication No. CN 104023876, Injection Molding of Amorphous Alloy Using an Injection Molding System

 

Chinese Publication No. CN 104043805, Plunger with Removable Plunger Tip

 

Chinese Publication No. CN 104039481, Ingot Loading Mechanism for Injection Molding Machine

 

Chinese Publication No. CN 104275458, Unevenly Spaced Induction Coil for Molten Alloy Containment

 

Chinese Publication No. CN 104275463, Slotted Shot Sleeve for Induction Melting of Material

 

Chinese Publication No. CN 104275478, Manifold Collar for Distributing Fluid Through a Cold Crucible

 

Chinese Publication No. CN 104988447, Nickel Based Thermal Spray Powder

 

Chinese Publication No. CN 203578747, Unevenly Spaced Induction Coil for Molten Alloy Containment

 

Japanese Publication No. JP 4216604, Amorphous Alloy Gliding Boards

 

Japanese Publication No. JP 4234589, Joining of Amorphous Metals to Other Metals Utilizing a Cast Mechanical Joint

 

Japanese Publication No. JP 5043427, Current Collector Plates Made of Bulk-Solidifying Amorphous Alloys

 

Japanese Publication No. JP 5227979, Thermoplastic Casting of Amorphous Alloys

 

Japanese Publication No. JP 5244282, Metal Frame for Electronic Hardware and Flat Panel Displays

 

Japanese Publication No. JP 5374562, Metal Frame for Electronic Hardware and Flat Panel Displays 

 

 

7

 

 

Japanese Publication No. JP 5639003, Current Collector Plates Made of Bulk-Solidifying Amorphous Alloys

 

Japanese Publication No. JP 5703424, Ingot Loading Mechanism for Injection Molding Machine

 

Japanese Publication No. JP 2005502782, Method of Forming Molded Articles of Amorphous Alloy with High Elastic Limit

 

Japanese Publication No. JP 2005504882, Method of Improving Bulk-Solidifying Alloy Compositions and Cast Articles Made of the Same

 

Japanese Publication No. JP 2005506116, Sharp-Edged Cutting Tools

 

Japanese Publication No. JP 2005515898, Thermoplastic Casting of Amorphous Alloys

 

Japanese Publication No. JP 2009172391, Sharp-Edged Cutting Tools

 

Japanese Publication No. JP 2011045931, Method of Improving Bulk-Solidifying Alloy Compositions and Cast Articles Made of the Same

 

Japanese Publication No. JP 2011080152, Method of Forming Molded Articles of Amorphous Alloy with High Elastic Limit

 

Japanese Publication No. JP 2012166033, Sharp-Edged Cutting Tools

 

Japanese Publication No. JP 2013516326, Amorphous Alloy Interfacial Layer/Seal/Bonding

 

Japanese Publication No. JP 2014040667, Method of Forming Molded Articles of Amorphous Alloy with High Elastic Limit

 

Japanese Publication No. JP 2014098538, Unevenly Spaced Induction Coil for Molten Alloy Containment

 

Japanese Publication No. JP 2014527913, Molding and Separating of Bulk-Solidifying Amorphous Alloys and Composite Containing Amorphous Alloy

 

Japanese Publication No. JP 2014176899, Plunger with Removable Plunger Tip

 

Japanese Publication No. JP 2014528840, Injection Molding of Amorphous Alloy Using an Injection Molding System

 

Japanese Publication No. JP 2014528888, Crucible Materials for Alloying Materials

 

Japanese Publication No. JP 2015016506, Slotted Shot Sleeve for Induction Melting of Material

 

 

8

 

 

Japanese Publication No. JP 2015037807, Manifold Collar for Distributing Fluid Through a Cold Crucible

 

Japanese Publication No. JP 2015038243, Method of Improving Bulk-Solidifying Alloy Compositions and Cast Articles Made of the Same

 

Japanese Publication No. JP 2015062952, Unevenly Spaced Induction Coil for Molten Alloy Containment

 

Japanese Publication No. JP 2015502557, Nano- and Micro-Replication for Authentication and Texturization

 

Japanese Publication No. JP 2015503028, Alloying Technique for Fe-Based Bulk Amorphous Alloy

 

Japanese Publication No. JPH 09323146, Die-Casting of Bulk-Solidifying Amorphous Alloys

 

Japanese Publication No. JPH 11285801, Vacuum Die Casting of Amorphous Alloys

 

Korean Publication No. KR 100874694, Sharp-Edged Cutting Tools

 

Korean Publication No. KR 100898657, Joining of Amorphous Metals to Other Metals Utilizing a Cast Mechanical Joint

 

Korean Publication No. KR 100908420, Metal Frame for Electronic Hardware and Flat Panel Displays

 

Korean Publication No. KR 100977231, Method of Forming Molded Articles of Amorphous Alloy with High Elastic Limit

 

Korean Publication No. KR 101053756, Thermoplastic Casting of Amorphous Alloys

 

Korean Publication No. KR 101095223, Continuous Casting of Foamed Bulk Amorphous Alloys

 

Korean Publication No. KR 101190440, Thermoplastic Casting of Amorphous Alloys

 

Korean Publication No. KR 101202587, Method of Improving Bulk-Solidifying Alloy Compositions and Cast Articles Made of the Same

  

Korean Publication No. KR 101445953, Nickel Based Thermal Spray Powder

 

Korean Publication No. KR 101450988, Molybdenum-Containing Ferrous Alloy for Improved Thermal Spray Deposition Hard-Facing

 

Korean Publication No. KR 101471726, Method of Improving Bulk-Solidifying Alloy Compositions and Cast Articles Made of the Same

 

 

9

 

 

Korean Publication No. KR 101500170, Unevenly Spaced Induction Coil for Molten Alloy Containment

 

Korean Publication No. KR 20050027092, Foamed Structures of Bulk-Solidifying Amorphous Alloys

 

Korean Publication No. KR 20120109608, Amorphous Alloy Interfacial Layer/Seal/Bonding

 

Korean Publication No. KR 20130048224, Tin-Addition to Amorphous Alloy

 

Korean Publication No. KR 20140065154, Nano- and Micro-Replication for Authentication and Texturization

 

Korean Publication No. KR 20140068246, Injection Molding of Amorphous Alloy Using an Injection Molding System

 

Korean Publication No. KR 20140070639, Radiation Shielding Structures

 

Korean Publication No. KR 20140090631, Containment Gate for Inline Temperature Control Melting

 

Korean Publication No. KR 20140092410, Amorphous Alloy Interfacial Layer/Seal/Bonding

 

Korean Publication No. KR 20150088916, Tin-Addition to Amorphous Alloy

 

Korean Publication No. KR 201520121404, Thermoplastic Forming Methods for Amorphous Alloys

 

Singaporean Publication No. SG 50793, Die-Casting of Bulk-Solidifying Amorphous Alloys

 

Taiwanese Publication No. TW 380068, Vacuum Die Casting of Amorphous Alloys

 

Trademarks

 

Japanese Trademark Registration No. 4149191, Registered 05/22/1998

 

Japanese Trademark Registration No. 4496160, Registered 08/03/2001

 

Korean Trademark Registration No. 447777, Registered 05/13/1999

 

Hong Kong Trademark Registration No. B6279/2002, Registered 05/24/2002

 

Singapore Trademark Registration No. T97/15181Z, Registered 12/15/1997

 

 

10

 

 

APPENDIX B

 

List of Eontec Licensed Patents and Trademarks

 

 

	
No.
	
Patent No.
	
Patent Name
	
Owner

	
1
	
CN103789770
	
Chemical polishing technology and polishing solution for surface of bulk amorphous and nanocrystalline alloy
	
Eontec

	
2
	
CN105154794
	
Amorphous alloy with antibacterial function
	
Meon

	
3
	
CN105220083
	
Corrosion resistant amorphous alloy and preparation method and application
	
Meon

	
4
	
CN105220085
	
High strength amorphous alloy and preparation method and application
	
Meon

	
5
	
201510780752.9
	
High toughness amorphous composite material and preparation method and application
	
Meon

	
6
	
CN105239024
	
High hardness amorphous composite material and preparation method and application
	
Meon

 

 

1

 

 

APPENDIX C

 

Field of Use Restrictions

 

The licenses granted under this Agreement shall be subject to the following exclusions, conditions, restrictions, and limitations:

 

	
1.
	
The licenses granted to Eontec and LMT under this Agreement shall exclude the following products and fields of use:

 

	 	
a.
	
Any Consumer Electronic Products (as defined below) or any components or sub-components suitable for use with any Consumer Electronic Products. For this purpose, “Consumer Electronic Products” means personal computers (portable and desktop); tablet or slate style computing devices; handheld electronic and/or communication devices (e.g., smartphones, digital music players, multi-function devices, etc.); any device whose function includes the creation, storage or consumption of digital media; any component or sub-component in any Consumer Electronic Product; and any accessory that is the same or similar (in the sole discretion of Apple, Inc.) to an accessory made or sold by or on behalf of Apple (regardless of when Apple sold or started to sell such accessory, including after date of the closing of the Proposed Transaction) that is suitable for use with any Consumer Electronic Product. 

 

	 	
b.
	
Any watches or components for watches.

 

	 	
c.
	
Finished or semi-finished Jewelry, and also any other products that are sold under the name of a Luxury Brand or incorporated into products that are sold under the name of a Luxury Brand, including without limitation (a) buckles for belts, briefcases, handbags, and clothing; and (b) cigarette lighters and cigar cutters. For purposes hereof, the term “Jewelry” means rings, necklaces, pins, cufflinks, and other objects that are ornamental in nature and used for adornment of the human body. “Luxury Brands ” shall not include brands owned or used by Nokia, Motorola, Samsung, LG, Sony-Ericsson, Apple, RIM, HTC or similar companies that supply mobile phones and accessories to the mass-market. Otherwise, “Luxury Brands” consist of the following brands and any other similar, renowned luxury brand which is used as the sole or primary brand on a competitive product sold at similar price point:

 

LVMH Moet Hennessey

Rolex

Chanel

Bentley Motors

Chopard

Compagnie Financiere Richemont

Gucci Group

Hermes

IWC

Jaeger LeCoultre

Mercedes Benz

 

 

 

 

 

Porsche

ST DuPont

The Swatch Group

Tiffany & Co.

IWC 

Cartier 

Montblanc 

TAG Heuer 

Louis Vuitton

Bvlgari

CHANEL

Prada

Dunhill

Aspreys

Porsche

Ferrari

Sellita Group

Safilo Group

Luxottica Group

Ventura 

Ellicot

 

 

	
2.
	
The license granted to Eontec shall exclude any LMT Patents or LMT Technical Information that LMT licenses from a third party (other than a third party that is an Affiliate of LMT) if and to the extent that the terms of the third party license would prohibit the sublicensing of such Intellectual Property to Eontec hereunder.

 

	
3.
	
The license granted to LMT shall exclude any Eontec Patents or Eontec Technical Information that Eontec licenses from a third party (other than a third party that is an Affiliate of Eontec) if and to the extent that the terms of the third party license would prohibit the sublicensing of such Intellectual Property to LMT hereunder. 

 

	
4.
	
The exclusive license granted to Eontec herein shall be subject to the non-exclusive license rights of Visser Precision Cast, LLC (and its sublicensees) pursuant to that certain Amended and Restated VPC Sublicense Agreement, dated May 20, 2014, between LMT and Visser Precision Cast, LLC.

 

	
5.
	
The Eontec Field shall exclude any products or services that are intended for use in, or likely to be used in, military or weapons/munitions applications.

 

	
6.
	
The LMT Field shall exclude any products or services that are intended for use in, or likely to be used in, military or weapons/munitions applications.

 

	
7.
	
The licenses granted to Eontec hereunder shall be subject to and limited by (and shall contain any exclusions required by) any applicable state or federal legal or regulatory requirements of any state or federal governmental or regulatory body. Specifically, the licenses granted to Eontec hereunder, and the Eontec Field shall exclude, any Intellectual Property, products, or services that would require an export license under the United States Export Administration Regulations (EAR) (15 CFR §§ 734.2(b)(2)(ii) and 734.2(b)(4)) or that would require any other consent or authorization of any United States federal or state governmental or regulatory body, unless and until the required export license or other governmental or regulatory consent or authorization is obtained. LMT agrees to use commercially reasonable efforts to obtain all necessary export licenses upon the written request of Eontec. 

 

 

 

 

 

	
8.
	
The licenses granted to LMT hereunder shall be subject to and limited by (and shall contain any exclusions required by) any applicable People's Republic of China governmental legal or regulatory requirements of Chinese government or regulatory body. Specifically, the licenses granted to LMT hereunder, and the LMT Field shall exclude, any Intellectual Property, products, or services that would require an export license under Chinese regulations or that would require any other consent or authorization of any Chinese governmental or regulatory body, unless and until the required export license or other governmental or regulatory consent or authorization is obtained. Eontec agrees to use commercially reasonable efforts to obtain all necessary export licenses upon the written request of LMT.ex10-3.htm

Exhibit 10.3

 

AMENDED AND RESTATED EMPloYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into effective as of March 10, 2016 (the “Amendment Date”), by and between LIQUIDMETAL TECHNOLOGIES, INC., a Delaware corporation (the “Company”), and THOMAS STEIPP, an individual residing in the State of California (the “Employee”).

 

recitals

 

WHEREAS, the Employee and the Company previously entered into an Employment Agreement dated August 3, 2010 (the “Effective Date”) pursuant to which the Company agreed to employ Employee as the Company’s President and Chief Executive Officer (the “Original Employment Agreement”), and the Employee has continued to serve in those roles continuously since that date;

 

WHEREAS, the Original Employment Agreement provided for an employment term of five years, which term expired on August 3, 2015; 

 

WHEREAS, the Company and Employee entered into an Amended and Restated Employment Agreement (“Amendment”) on February 4, 2016; and

 

WHEREAS, the Company and the Employee desire to amend and restate the Original Employment Agreement and Amendment to extend the term of Employee’s employment with the Company and to provide for other terms and conditions of such employment, all as set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the Company and the Employee hereby amend and restate the Original Employment Agreement and Amendment to read as follows:

 

1.     Employment. The Company hereby employs Employee, and the Employee hereby accepts such employment, upon the terms and conditions set forth in this Agreement.

 

2.     Term. Subject to the terms and conditions of this Agreement, including, but not limited to, the provisions for termination set forth in Section 5 hereof, the employment of the Employee under the Original Employment Agreement commenced on the Effective Date, continued through the Initial Term (as defined in the Original Employment Agreement) and has continued thereafter. The Company and Employee agree that Employee’s employment shall continue from the date hereof through August 3, 2017 (the “Subsequent Term”). Upon the expiration of the Subsequent Term, the term of Employee’s employment shall be renewed upon the Company and Employee agreeing to extend this Agreement in writing. 

 

 

 

 

 

3.     Duties. Employee has served, and will continue to serve, as PRESIDENT and CHIEF EXECUTIVE OFFICER of the Company. The Employee will devote his full business time, attention, skill, and energy to the business of the Company and will be a full-time employee of the Company. Employee will use the Employee’s best efforts to promote the success of the Company’s business and will cooperate fully with the Board of Directors in the advancement of the best interests of the Company. Furthermore, the Employee shall assume and competently perform such reasonable responsibilities and duties as may be assigned to the Employee from time to time by the Board of Directors and Chairman of the Board of the Company or their designee. To the extent that the Company shall have any parent company, subsidiaries, affiliated corporations, partnerships, or joint ventures (collectively “Related Entities”), the Employee shall perform such duties to promote these entities and to promote and protect their respective interests to the same extent as the interests of the Company without additional compensation. At all times, the Employee agrees that the Employee has read and will abide by, and prospectively will read and abide by, any employee handbook, policy, or practice that the Company or Related Entities has or hereafter adopts with respect to its employees generally.

  

4.     Compensation.

 

(a)     Annual Base Salary. As compensation for Employee’s services and in consideration for the Employee’s covenants contained in this Agreement, the Company shall pay the Employee an annual base salary of $300,000, which salary shall be paid in accordance with the Company’s regular payroll schedule and will be subject to applicable tax and other legally required withholdings. The annual compensation may be adjusted upward (but not downward) in the sole discretion of the Board of Directors.

 

(b)     Bonuses. In addition to the Employee’s annual base compensation, during the term of the Employee’s employment hereunder, the Employee shall be entitled to only such bonuses or additional compensation as may be granted to the Employee by the Board of Directors or Chairman of the Board of the Company, in their sole discretion.

 

(c)     Reimbursement of Expenses. The Employee shall be reimbursed for all reasonable and customary travel and other business expenses incurred by Employee in the performance of Employee’s duties hereunder, provided that such reimbursement shall be subject to, and in accordance with, any expense reimbursement policies and/or expense documentation requirements of the Company that may be in effect from time to time.

 

(d)     Stock Grant. Following the Effective Date, the Company granted to Employee 6,000,000 shares of restricted stock, and has subsequently granted to the Employee additional shares of restricted stock and options. The Company and the Employee contemplate that the Company will in the future make additional equity grants (restricted stock and/or options) to Employee consistent with the Company’s employee equity grant practices, but in all cases subject to the absolute discretion of the Company’s Board of Directors as to whether to make any such grants and as to the number of shares, price, vesting and other terms as the Board may determine.

 

(e)     Other Benefits. During the term of the Employee’s employment hereunder, the Employee shall be eligible to participate in such pension, life insurance, health, disability insurance and other benefits plans, if any, which the Company may from time to time make available to similar-level employees.

 

 

 

 

 

(f)     Vacation. The Employee shall be entitled to four weeks paid vacation during each calendar year. Vacation shall be taken at such times and with such notice so as to not disrupt or interfere with the business of the Company. Unused vacation from a particular calendar year will not be paid in cash but will carry over to the succeeding calendar year, up to a maximum of 3 weeks, and no more than 3 weeks of carried-over vacation may be taken during any calendar year (or such other amount as is provided for in any policy or plan that the Board may adopt).

 

5.     Termination. 

 

(a)     Death. The Employee’s employment under this Agreement shall terminate immediately upon Employee’s death. In the event of a termination pursuant to this Section 5(a), the Employee’s estate shall be entitled to receive any unpaid base salary owing to Employee up through and including the date of the Employee’s death.

 

(b)     Disability. If during the term of the Employee’s employment hereunder, the Employee becomes physically or mentally disabled in the determination of a physician appointed or selected by the Company, or, if due to any physical or mental condition, the Employee becomes unable for a period of more than sixty (60) days during any six-month period to perform Employee’s duties hereunder, on substantially a full-time basis as determined by a physician selected by the Company, the Company may, at its option, terminate the Employee’s employment upon not less than thirty (30) days written notice. In the event of a termination pursuant to this Section 5(b), the Employee shall be entitled to receive any unpaid base salary owing to Employee up through and including the effective date of termination.

 

(c)     Termination By Company Without Cause. The Company may terminate the Employee’s employment at any time without cause (a “Termination Without Cause”). In the event of a Termination Without Cause, the Employee shall continue to receive the Employee’s base salary (as then in effect) during the twelve (12) month period immediately following the effective date of the Termination Without Cause (the “Severance Period”). In addition to the severance pay described in the preceding sentence, the Employee shall continue, during the Severance Period, to receive all employee health and welfare benefits to which Employee was entitled immediately prior to the Termination Without Cause. Employee agrees and acknowledges, however, that Employee will forfeit the right to receive base salary and benefits during the Severance Period immediately upon the Employee’s breach of any covenant set forth in Section 6 of this Agreement. The Employee’s right to receive any severance payments pursuant to this Section 5(c) is conditioned upon the Employee signing a general release in form and substance satisfactory to the Company under which the Employee releases the Company and its affiliates, together with their respective officers, directors, shareholders, employees, agents and successors and assigns, from any and all claims Employee may have against them as of the date of such release (whether known or unknown), other than claims arising out of (A) this Agreement, (B) the agreements relating to the equity awards granted to Employee or (C) the Amended and Restated Director and Officer Indemnification Agreement between the Company and Employee dated September 30, 2015 (the “Indemnification Agreement”). In addition, upon a Termination Without Cause, the vesting of any equity award that is not completely vested as of the effective date of such termination shall immediately be accelerated so that such award becomes vested for that number of shares as to which it would be vested if Employee’s employment were to continue for 12 months following the effective date of such termination. In addition, the period of time during which Employee shall be entitled to exercise any equity award that is an option shall be extended to the earlier of (i) the second anniversary of such effective date or (ii) the date on which such option would otherwise expire and terminate in accordance with the terms of such option (without giving effect to any expiration or termination that is based upon the date of any termination of employment).

 

 

 

 

 

(d)     Termination By Company With Cause. The Company may terminate the Employee’s employment at any time with Cause. As used in this Agreement, “Cause” shall mean the following: (1) the Employee’s failure or inability to perform Employee’s duties under this Agreement to the reasonable satisfaction of the Board of Directors of the Company after being given written notice of the Employee’s deficiencies and having a period of at least ten (10) days to cure such deficiencies to the reasonable satisfaction of the Board of Directors; (2) dishonesty or other serious misconduct (3) the commission of an unlawful act material to Employee’s employment, (4) a material violation of the Company’s policies or practices which reasonably justifies immediate termination; (5) committing, pleading guilty, nolo contendre or no contest (or their equivalent) to, entering into a pretrial intervention or diversion program regarding, or conviction of, a felony or any crime or act involving moral turpitude, fraud, dishonesty, or misrepresentation; (6) the commission by the Employee of any act which could reasonably affect or impact to a material degree the interests of the Company or Related Entities or in some manner injure the business, or business relationships of the Company or Related Entities; (7) the Employee’s inability to perform an essential function of Employee’s position; (8) any material breach by Employee of this Agreement which, if unintentional and capable of being cured, is not cured within ten (10) days of written notice of such breach by the Company to Employee. The Company may terminate this Agreement for Cause at any time without notice. In the event of a termination for Cause, the Company shall be relieved of all its obligations to the Employee provided for by this Agreement as of the effective date of termination, and all payments to the Employee hereunder shall immediately cease and terminate as of such date, except that Employee shall be entitled to the annual base salary hereunder up to and including the effective date of termination, provided, however, that the Employee’ s obligations under Sections 6 and 7 of this Agreement shall survive such a Termination for Cause, and any other liabilities or obligations which have accrued and are owed by the Employee to the Company shall not be extinguished or released by such termination.

  

(e)

 

At any time prior to the second anniversary of such Change of Control, the Company terminates Employee’s employment without Cause , or Employee voluntarily terminates his employment for Good Reason (as defined below), the Employee shall be entitled to lump-sum severance compensation in an amount equal to one (1) year of Employee’s then-current base salary (the “Supplemental Change in Control Compensation”). The Supplemental Change in Control Compensation shall be payable on fifteen (15) days after the effective date of the termination of Employee’s employment. In addition to the Supplemental Change in Control Compensation, the Employee shall, to the extent permitted by any applicable benefit plan, continue to receive, from the date of termination through the second anniversary of such date of termination, all employee health and welfare benefits that Employee would have received during such period in the absence of such termination. Employee agrees and acknowledges, however, that Employee will forfeit the right to receive Supplemental Change in Control Compensation and benefits during such period immediately upon the Employee’s breach of any covenant set forth in Section 6 of this Agreement. In addition, all unvested shares subject to any equity award shall immediately vest upon the effective date of termination of Employee’s employment as set forth in the Employee Termination Notice. In addition, the period of time during which Employee shall be entitled to exercise any equity award that is an option shall be extended to the earlier of (i) the second anniversary of such effective date of termination or (ii) the date on which such option would otherwise expire and terminate in accordance with the terms of such option (without giving effect to any expiration or termination that is based upon the date of any termination of employment).

 

 

 

 

 

(i)     For purposes hereof, the term “Change in Control “means any of the following events: (1) any entity or “group” (as described in Rule 13d-5(b)(l) promulgated under the Securities Exchange Act of 1934, as amended), other than an affiliate or subsidiary of the Company or an employee benefit plan established or maintained by the Company, a subsidiary of the Company, or any of their respective affiliates, acquires more than 50.0% of the combined voting power of the Company’s then outstanding securities; or (2) the consummation of (A) a merger or consolidation of the Company with or into another corporation unless after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own more than 50% of the aggregate voting power of the Company or the successor entity of such transaction, or (B) a sale or disposition of all or substantially all of the Company’s assets.

 

(ii)     “Good Reason” means (i) the failure of the Company to pay Employee’s base salary at no less than the rate in effect immediately prior to the Change of Control, or the Company’s reduction in Employee’s target bonus, (ii) the assignment of Employee to a position, responsibilities, authority level or duties of a materially lesser status or degree of responsibility than his position, responsibilities, authority level, or duties immediately prior to the Change of Control, or (iii) the transfer of Employee to a work site more than twenty-five mile distance from Employee’s work site immediately prior to the Change of Control, in each case without Employee’s consent; provided, that, in each case, the Company shall have been given written notice by Employee describing in reasonable detail the occurrence of the event r circumstance for which Employee believes he may resign for Good Reason within thirty (30) business days of when Employee first learns of the first occurrence thereof and the Company shall not have cured such event or circumstance within fifteen (15) business days after the Company’s receipt of such notice.

 

(iii)     The Employee’s right to receive any compensation pursuant to this Section 5(e) is conditioned upon the Employee signing (on or before such compensation is due) a general release in form and substance satisfactory to the Company under which the Employee releases the Company and its affiliates, together with their respective officers, directors, shareholders, employees, agents and successors and assigns, from any and all claims Employee may have against them as of the date of such release (whether known or unknown), other than claims arising out of (A) this Agreement, (B) the agreements relating to the equity awards granted to Employee or (C) the Indemnification Agreement.

 

 

 

 

 

(f)     Termination by Employee Without a Change of Control. Employee may terminate his employment at any time upon 30 days written notice to the Company. If such termination is covered by an Employee Termination Notice described in Section 5(e), then such termination shall be governed by Section 5(e) and not this Section 5(f). If such termination is not covered by an Employee Termination Notice, Employee shall be entitled to receive only any unpaid base salary owing to Employee up through and including the effective date of such termination, and the vesting and exercisability of equity awards granted to Employee shall be governed by the equity award agreements evidencing such awards.

 

(g)     Change of Status. If, without a Change of Control having occurred, the Board changes Employee’s position so that he is no longer the Chief Executive Officer of the Company, the base salary, bonus, equity awards and other benefits associated with the new position in the twelve months following such change in position shall be no less than those set forth in Section 5(e) as if Employee’s employment had been Terminated Without Cause as of the date of the change in position.

 

6.     Nonsolicitation and Nondisclosure Covenants.

 

(a)     Rationale for Restrictions. Employee acknowledges that Employee’s services hereunder are of a special, unique and extraordinary character, and Employee’s position with the Company places Employee in a position of confidence and trust with customers, suppliers and other persons and entities with whom the Company and its Related Entities have a business relationship. The Employee further acknowledges that the rendering of services under this Agreement will likely require the disclosure to Employee of Confidential Information (as defined below) including Trade Secrets of the Company relating to the Company and/or Related Entities. As a consequence, the Employee agrees that it is reasonable and necessary for the protection of the goodwill and legitimate business interests of the Company and Related Entities that the Employee make the covenants contained in this Section 6, that such covenants were and are a material inducement for the Company to employ the Employee and to enter into the Original Employment Agreement and this Agreement and that the covenants are given as an integral part of and incident to this Agreement.

 

(b)     Nonsolicitation Covenants. As used herein, the term “Restrictive Period” means the time period commencing on the Effective Date and ending on the second (2nd) anniversary of the date on which the Employee’s employment by the Company (or any Related Entity) terminates for any reason, including both a termination by the Company for Cause and Not for Cause. In addition, the term “Covered Business” means any business which is the same or similar to, any business conducted by the Company or any of the Related Entities at any time during the Restrictive Period. The Employee agrees that the Employee will not engage in any of the following acts anywhere in the world during the Restrictive Period:

 

	 	
(i)
	
directly or indirectly assist, promote or encourage any existing or potential employees, customers, clients or vendors of the Company or any Related Entity, as well as any other parties which have a business relationship with the Company or a Related Entity, to terminate, discontinue, or reduce the extent of their relationship with the Company or a Related Entity;

 

 

 

 

 

	 	
(ii)
	
directly or indirectly solicit business of the same or similar type as a Covered Business, from any person or entity known by the Employee to be a customer or client of the Company, whether or not the Employee had contact with such person or entity during the Employee’s employment with the Company;

 

	 	
(iii)
	
disparage the Company, any Related Entities, and/or any shareholder, director, officer, employee, or agent of the Company or any Related Entity; and/or

 

	 	
(iv)
	
engage in any practice the purpose of which is to evade the provisions of this Section 6.

 

Employee acknowledges that Employee’s services hereunder are of a special, unique and extraordinary character, and Employee’s position with the Company places Employee in a position of confidence and trust with suppliers, and other persons and entities with whom the Company and its Related Entities have a business relationship. The Employee further acknowledges that the rendering of services under this Agreement will likely require the disclosure to Employee of Confidential Information (as defined below) and Trade Secrets (as defined below) of the Company relating to the Company and/or Related Entities. As a consequence, the Employee agrees that it is reasonable and necessary for the protection of the goodwill and legitimate business interests of the Company and Related Entities that the Employee make the covenants contained in this Section 6, that such covenants are a material inducement for the Company to employ the Employee and to enter into the Original Employment Agreement and this Agreement, and that the covenants are given as an integral part of and incident to this Agreement.

 

(c)     Disclosure of Confidential Information. The Employee acknowledges that the inventions, innovations, software, Trade Secrets, business plans, financial strategies, finances, and all other confidential or proprietary information with respect to the business and operations of the Company and Related Entities are valuable, special and unique assets of the Company. Accordingly, the Employee agrees not to, at any time whatsoever either during or after the Employee’s term of employment with the Company, disclose, directly or indirectly, to any person or entity, or use or authorize any person or entity to use, any confidential or proprietary information with respect to the Company or Related Entities without the prior written consent of the Company, including, without limitation, information as to the financial condition, results of operations, identities of clients or prospective clients, products under development, acquisition strategies or acquisitions under consideration, pricing or cost information, marketing strategies, passwords or codes or any other information relating to the Company or any of the Related Entities which could be reasonably regarded as confidential (collectively referred to as “Confidential Information”). However, the term “Confidential Information” does not include any information which is or shall become generally available to the public other than as a result of disclosure by the Employee or by any person or entity which the Employee knows (or which the Employee reasonably should know) has a duty of confidentiality to the Company or a Related Entity with respect to such information. In addition to the foregoing Company will be fully entitled to all of the protections and benefits afforded by the California Uniform Trade Secrets Acts and any other applicable law. The term “Trade Secret” shall mean any information including a formula, pattern, compilation, program, device, method, technique or process that derives independent economic value, actual or potential, from being not generally known to, and not being readily ascertainable by proper means by, other persons who can derive economic value from its disclosure or use, including but not limited to the patented information and processes as well as the unpatented information and processes comprising underlying, arising from and associated with Liquidmetal alloys.

 

 

 

 

 

(d)     Prevention of Premature Disclosure of Confidential Information and Trade Secrets. The Employee agrees and acknowledges that, because the success of the Company is heavily dependent upon maintaining the secrecy of the Company’s Confidential Information and Trade Secrets and preventing the premature public disclosure of the Company’s proprietary information and technology including its Confidential Information and Trade Secrets, the Employee agrees to use the Employee’s best efforts and his or her highest degree of care, and prudence to ensure that no Confidential Information or Trade Secret prematurely leaks or otherwise prematurely makes its way into the public domain or any public forum, including, without limitation into any trade publications, internet chat rooms, or other similar forums. In the event the Employee becomes aware of any premature leak of Confidential Information or Trade Secret or becomes aware of any circumstances creating a risk of such a leak, the Employee shall immediately inform the Board of Directors of such leak or of such circumstances.

 

(e)     Removal and Return of Proprietary Items. The Employee will not remove from the Company’s premises (except to the extent such removal is for purposes of the performance of the Employee’s duties at home or while traveling, and under such conditions and restrictions as are specifically authorized and/or required by the Company) or transmit by any means, electronic or otherwise, any document, record, notebook, model, component, device, computer software or code, or Confidential Information or Trade Secret whether embodied in a disk or in any other form, including electronic form (collectively, the “Proprietary Items”). The Employee recognizes that, as between the Company and the Employee, all of the Proprietary Items, whether or not developed by the Employee, are the exclusive property of the Company. Upon termination of Employee’s employment with the Company by either party (regardless of the reason for termination) or upon the request of the Company during the term of employment, the Employee will return to the Company all of the Proprietary Items in the Employee’s possession or subject to the Employee’s control, and the Employee shall not retain any copies, abstracts, sketches, or other physical embodiment of any of the Proprietary Items, Confidential Information, Trade Secret or any part thereof.

 

(f)     Enforcement and Remedies. In the event of any breach of any of the covenants set forth in this Section 6, the Employee recognizes that the remedies at law will be inadequate and that in addition to any relief at law which may be available to the Company for such violation or breach and regardless of any other provision contained in this Agreement, the Company shall be entitled to equitable remedies (including an injunction) and such other relief as a court may grant after considering the intent of this Section 6. Additionally, the period of time applicable to any covenant set forth in this Section 6 will be extended by the duration of any violation by Employee of such covenant. In the event a court of competent jurisdiction determines that any of the covenants set forth in this Section 6 are excessively broad as to duration, geographic scope, prohibited activities or otherwise, the parties agree that this covenant shall be reduced or curtailed to the extent, but only to the extent, necessary to render it enforceable.

 

 

 

 

 

7.     Employee Inventions.

 

(a)     Employee agrees that any inventions, original works of authorship or other work product in whole or in part conceived or made by Employee which are made through the use of any of the Confidential Information or any of the Company’s equipment, facilities, supplies, trade secrets or time or which relate to the Company’s business or the Company’s actual or demonstrably anticipated research and development, or which result from any work performed by Employee for the Company, along with any rights in or to any of the foregoing under copyright, patent, trade secret, trademark, or other law, shall belong exclusively to the Company and shall be deemed part of the Confidential Information for purposes of this Agreement whether or not fixed in a tangible medium of expression. Without limiting the foregoing, Employee agrees that any such original works of authorship shall be deemed to be “works made for hire” and that the Company shall be deemed the author thereof under the U. S. Copyright Act (Title 17 of the U. S. Code), provided that in the event and to the extent such works are determined not to constitute “works made for hire” as a matter of law or that there are any rights that do not accrue to the Company as a work made for hire, Employee hereby irrevocably assigns and transfers to the Company all right, title and interest in and to such works, including but not limited to copyrights and other intellectual property rights. This Agreement shall be construed in accordance with the provisions of Section 2870 of die California Labor Code (a copy of which is attached as Exhibit A hereto) relating to inventions made by Employee, and accordingly this Agreement is not intended and shall not be interpreted to assign to or vest in the Company any of Employee’s rights in any inventions other than those described in the first sentence of this Section 7(a).

 

(b)     At all times during Employee’s employment by the Company, Employee will maintain a complete and detailed current written record of all ideas, concepts, improvements, discoveries or inventions, of any nature (“Inventions”), whether patentable or not, created or made in whole or part by Employee, either solely or jointly with others, and Employee will promptly disclose any such Inventions to the Company, in writing. Employee further agrees that all such written records shall be and remain the sole and exclusive property of the Company, and Employee shall make such written records available to the Company at any time upon request, for review, inspection or copying by the Company, and shall deliver all copies of such records to the Company upon termination of Employee’s employment, for any reason.

 

(c)     With respect to Inventions made or conceived of in whole or part by Employee, either solely or jointly with others, whether during Employee’s employment by the Company or after termination of such employment if developed using, applying or adapting, in any way, the Company’s equipment, supplies, facilities, Confidential Information or trade secret information, or during Employee’s working hours, or such Invention relates to the Company’s business, or actual or demonstrably anticipated research or development, or results from any work done in whole or part by Employee, either solely or jointly with others, for the Company, or is based on or related to programs, processes, Inventions or information learned by Employee during such employment

 

 

 

 

 

	 	
(i)
	
Employee shall inform the Company promptly and fully of such Inventions by a written report, setting forth in detail the procedures employed and the results achieved.

 

	 	
(ii)
	
Employee hereby expressly transfers and assigns to the Company all of Employee’s right, title and interest in and to such Inventions; and to applications for U.S. and/or foreign letters patent and/or copyrights as well as any and all continuations, continuations-in-part, and divisions thereof and to U.S. and/or foreign letters patent and/or copyrights issued thereon, as well as any and all reissues, extensions, improvements, or further developments thereof.

 

	 	
(iii)
	
Employee shall apply, or assist the Company in applying, at the Company’s request and expense, for U.S. and/or foreign letters patent and/or copyrights in the Company’s name or otherwise as the Company shall desire. The decision to obtain letters patent and/or copyrights shall reside solely with the Company; however, the decision not to obtain or time thereafter, shall not be construed as a waiver of any rights hereunder.

 

	 	
(iv)
	
the Company shall also have the royalty-free right to use in its business, to license other to use, and to make use and sell products, processes and/or services derived from any Inventions, discoveries, designs, improvements, concepts, ideas, whether patentable or not, including but not limited to process, methods, formulas, techniques or know-how related thereto, which are not within the scope of Inventions as defined herein, but which are conceived or made in whole or part by Employee, either solely or jointly with others, during regular working hours or with the use of the Company’s equipment, supplies, facilities, Confidential Information, trade secret information materials or personnel.

 

8.     Essential and Independent Covenants. The Employee’ s covenants in Sections 6 and 7 of this Agreement are independent covenants, and the existence of any claim by the Employee against the Company under this Agreement or otherwise will not excuse the Employee’s breach of any covenant in Section 6 or 7. The covenants of Section 6 and 7 shall survive the expiration, termination, extinguishment, or lapse of this Agreement under any circumstances, even if this Agreement is terminated by either party, whether for Cause or Not for Cause.

 

 

 

 

 

9.     Representations and Warranties by the Employee. The Employee represents and warrants to the Company that the execution and delivery by the Employee of this Agreement do not, and the performance by the Employee of the Employee’ s obligations hereunder will not, with or without the giving of notice or the passage of time, or both:(a) violate any judgment, writ, injunction, or order of any court, arbitrator, or governmental agency applicable to the Employee, or (b) conflict with, result in the breach of any provisions of or the termination of, or constitute a default under, any agreement to which the Employee is a party or by which the Employee is or may be bound, including, without limitation, any noncompetition agreement or similar agreement Employee further represents and warrants that he fully and completely understands this Agreement and that he has engaged in negotiations with the Company and has either consulted with an attorney of his choice or has had ample opportunity to do so and is fully satisfied with the opportunity he has had.

 

10.     Notices. For purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when hand- delivered, sent by facsimile transmission (as long as receipt is acknowledged), or mailed by United States certified or registered mail, return receipt requested, postage prepaid. addressed to the address or facsimile number for each party set forth on the signature page hereto, or to such other address or facsimile number as either party may have furnished to the other in writing in accordance except that a notice of change of address shall be effective only upon receipt.

 

11.     Miscellaneous. No provision of this Agreement may be modified or waived unless such waiver or modification is agreed to in writing signed by both of the parties hereto. No waiver by any party hereto of any breach by any other party hereto shall be deemed a waiver of any similar or dissimilar term or condition at the same or at any prior or subsequent time. This Agreement is the entire agreement between the parties hereto with respect to the Employee’s employment by the Company, and there are no agreements or representations, oral or otherwise, expressed or implied, with respect to or related to the employment of the Employee which are not set forth in this Agreement, other than (i) the Indemnification Agreement, which shall continue in full force and effect without change and (ii) the agreements between the Company and the Employee relating to the equity awards previously granted to Employee, which shall continue to govern those awards, except that, to the extent the acceleration of vesting provisions in this Agreement vary from the vesting provisions of those award agreements, the provisions of this Agreement shall control. This Agreement supersedes that certain Change of Control letter agreement dated September 13, 2013, which agreement is hereby terminated and of no further force or effect. This Agreement shall be binding upon, and inure to the benefit of, the Company, its respective successors and assigns, and the Employee and Employee’s heirs, executors, administrators and legal representatives. The duties and covenants of the Employee under this Agreement, being personal, may not be delegated or assigned by the Employee without the prior written consent of the Company, and any attempted delegation or assignment without such prior written consent shall be null and void and without legal effect. The parties agree that if any provision of this Agreement shall under any circumstances be deemed invalid or inoperative, the Agreement shall be construed with the invalid or inoperative provision deleted and the rights and obligations of the parties shall be construed and enforced accordingly. This Agreement may be assigned by the Company without the consent of the Employee, provided, however, that the Employee is given notice of the assignment.

 

 

 

 

 

12.     Governing Law; Resolution of Disputes. The validity, interpretation, construction, and performance of this Agreement shall be governed by the laws of the State of California without regard to principles of choice of law or conflicts of law thereunder. Any action or proceeding seeking to enforce any provision of: or based on any right arising out of, this Agreement may be brought against either of the parties in the courts of the State of California, County of Orange, or, if it has or can acquire jurisdiction, in the federal courts located in Orange County, California, and each of the parties consents to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein. Process in any action or proceeding referred to in the preceding sentence may be served on either party anywhere in the world. The parties hereto agree that having venue and jurisdiction solely in California is reasonable in that the headquarters for the Company is in Orange County, California and that site for litigation is the most central for such matters. THE PARTIES HEREBY WAIVE A JURY TRIAL IN ANY LITIGATION ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE EMPLOYMENT OF THE EMPLOYEE WITH THE COMPANY. This Agreement shall not be construed against either party but shall be construed without regard to the participation of either party in the drafting of this Agreement or any part thereof.

 

13.     Counterparts; Facsimile Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be effective upon the execution and delivery by any party hereto of facsimile copies of signature pages hereto duly executed by such party; provided, however. that any party delivering a facsimile signature page covenants and agrees to deliver promptly after the date hereof two (2) original copies to the other party hereto.

 

14.     Modification By The Court. In the event that any provision or Section of this Agreement violates any law of the state of California or is for some other reason unenforceable as written in the state of California, the Employee and the Company agree that the unenforceable provision or Section should not cause the entire Agreement to become unenforceable unless it is caused to fail in its essential purpose. In the event that any provision or Section of this Agreement violates any law of the state of California or is for some other reason unenforceable as written in the state of California, the Employee agrees that the provision should be reduced in scope or length or otherwise modified by the Court, if possible under the law, to cause the provision or Section of the Agreement to be legal and enforceable but to still provide to the Company the maximum protection available to it under the law.

 

Signature(s) on following page

 

 

 

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

 

	  	
LIQUIDMETAL TECHNOLOGIES, INC.

	 	 
	 	 
	 	By: /s/ Tony Chung
	 	Tony Chung, CFO
	 	 
	 	 
	 	Liquidmetal Technologies
	 	30452 Esperanza
	 	Rancho Santa Margarita, CA 92688
	 	 
	  	
EMPLOYEE:

	 	 
	 	 
	 	/s/ Thomas Steipp
	 	Thomas Steipp
	 	 
	 	Address: 15560 Shannon Heights
	 	Los Gatos, CA 95032

 

 

 

 

 

exhibit a

 

Section 2870 of the California Labor Code provides:

 

(a)     Any provision in an employment agreement which provides that an employee shall assign or offer to assign any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities or trade secret information except for those inventions that either. (1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; (2) Result from any work performed by the employee for the employer.

 

(b)     To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

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