Document:

ex_142892.htm

Exhibit 10.2

 

ROYALTY AGREEMENT

 

 

This “ROYALTY” AGREEMENT (hereinafter “Agreement”) is made and entered into by and between ZERO GRAVITY SOLUTIONS, INC. (“ZGSI”) and JOHN WAYNE KENNEDY, (“Kennedy”), collectively (“the Parties”).

 

RECITALS

 

	 	
			1.

				
			ZGSI and John Wayne Kennedy entered into a Settlement Agreement (“Settlement”) on or about April __, 2019. The Settlement, at paragraph A.4 states: Kennedy will provide ZGSI additional consideration pursuant to that certain Royalty Agreement, of even date herewith, as set forth in Exhibit D. This Agreement is Exhibit D to the Settlement.

			

 

	 	
			2.

				
			As part of the Settlement, ZGSI assigned ownership of USPN 9,816,071 and Patent Application No. 15/729,038, No. 14/244,084, and International Patent Serial No. PCT/US 15/24045 to Kennedy.

			

 

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein, the parties hereto, each intending to be legally bound hereby, do promise and agree as follows:

 

PROVISIONS

 

	 	
			A.

				
			DEFINITIONS

			

 

	 	
			(1)

				
			Gross Revenue obtained Sales (“GRS”) means gross revenue obtained by sales of products manufactured and sold by Kennedy, excluding all shipping taxes, and discounts.

			

 

	 	
			(2)

				
			Intellectual Property (the “IP”) means USPN 9,816,071 and Patent Application No. 15/729,038, Patent Application No. 14/244,084, and International Patent Serial No. PCT/US 15/24045.

			

 

	 	
			(3)

				
			Product means products intended for retail sales.

			

 

	 	
			(4)

				
			Royalty payments mean the additional consideration payments referenced in paragraph A.4 of the Settlement. Although the additional consideration payments will not be a “royalty” as that term is usually applied, since the ownership of the IP has been assigned to Kennedy, for ease of reference additional consideration payments will be called “royalty payments.”

			

 

	 	
			B.

				
			TERM

			

 

This Agreement shall take effect on the Effective Date and shall continue in full force and effect until the later of: (i) the expiration of the last to expire of USPN 9,816,071 or any patent issued on Patent Application No. 15,729,038, Patent Application No. 14,244,084, and International Patent Serial No. PCT/US 15/24045, and (ii) thirty (30) years.

 

 

Page 1 of 3

 

 

	 	
			C.

				
			ROYALTY PAYMENTS

			

 

	 	
			(1)

				
			Kennedy agrees to pay ZGSI a royalty payment of two percent (2%) of GRS on all products manufactured and sold by Kennedy utilizing the IP, excluding all shipping, taxes, and discounts.

			

 

	 	
			(2)

				
			Royalty payments are to be paid by the fifth (5th) of the month following the end of each quarter. A copy of all GRS shall accompany each Royalty payment.

			

 

	 	
			(3)

				
			Kennedy shall maintain accurate files, records, and books reflecting the GRS of all products manufactured and sold by Kennedy utilizing the IP, excluding shipping and taxes. Upon reasonable notice, ZGSI shall be allowed to review such books and records.

			

 

	 	
			D.

				
			CONSTRUCTION

			

 

The provisions of this Agreement shall be construed according to their fair meaning and neither for nor against any party hereto irrespective of which party caused such provisions, or the Agreement in its entirety, to be drafted.

 

	 	
			E.

				
			VENUE AND CHOICE OF LAW

			

 

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the state of Nevada. The Parties hereby submit to the exclusive jurisdiction of the courts in the state of Nevada for any dispute arising out of this Agreement.

 

	 	
			F.

				
			EXECUTION IN COUNTERPARTS

			

 

This Agreement may be executed in any number of counterparts, and each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement; provided, however, that in proving this Agreement, it shall not be necessary to produce or account for more than one counterpart hereof.

 

	 	
			G.

				
			EFFECTIVE DATE

			

 

This Agreement shall be effective upon execution below by all Parties, as well as execution and exchange between the Parties of all Exhibits referenced herein.

 

	 	
			H.

				
			AGREEMENT BINDING ON SUCCESSORS

			

 

The provisions of this Agreement shall be binding on and shall inure to the benefit of the Parties hereto, their heirs, assigns, and successors.

 

 

Page 2 of 3

 

 

	 	
			I. 

				
			ENTIRE AGREEMENT

			

 

This Agreement embodies the entire Agreement between the Parties with respect to the subject matter hereof, and there are no other agreements, representations, warranties, or understandings, oral or written, between them with respect to the subject matter, hereof, no alteration, modification, or change of the Agreement shall be valid unless by like written instrument.

 

	Dated this 29th day of April, 2019	 	Dated this 29th day of April, 2019
	 	 	 
	 	 	 
	JOHN WAYNE KENNEDY 	 	ZERO GRAVITY SOLUTIONS, INC.
	 	 	 
	 	 	 	 
	/s/ John Wayne Kennedy	 	By:	/s/ Timothy Peach	 
	 	 	 	 	 
	 	 	 	
			Name: Timothy A. Peach

			Title:   CEO

				 
	 	 	 

 

 

Page 3 of 3irt-ex101_300.htm

Exhibit 10.1

Schedule of Non-Employee Director Compensation
(as revised, effective March 20, 2019)

1.Annual Retainer:

a.$40,000 cash.

b.$60,000 in common stock.

2.Lead Independent Director and Annual Committee Chair Fees:

a.Lead Independent Director Fee - $20,000.

b.Audit Committee Chair - $20,000.

c.Compensation Committee Chair - $15,000.

d.Nominating and Governance Committee Chair - $10,000

3.Annual Committee Member (other than Chair) Fees:

a.Audit Committee - $7,500.

b.Compensation Committee - $5,000.

c.Nominating and Governance Committee - $5,000.Exhibit

Exhibit 10.1

AMENDMENT NO. 8 TO AMENDED AND RESTATED MASTER ACCOUNTS RECEIVABLE PURCHASE AGREEMENT
This AMENDMENT NO. 8 TO AMENDED AND RESTATED MASTER ACCOUNTS RECEIVABLE PURCHASE AGREEMENT,  dated  as  of  March 20, 2019  (this “Amendment”), is made and entered into by and between Plexus Corp., a Wisconsin corporation (“Plexus”), Plexus Intl. Sales & Logistics, LLC, a Delaware limited liability company (“PISL”), Plexus Manufacturing Sdn. Bhd., a private company limited by shares organized under the laws of Malaysia (“PM”), Plexus Services Ro SRL, a company organized and existing under the laws of Romania. (“Plexus Romania”), Plexus Corp. (UK) Limited, a company organized and existing under the laws of Scotland (“Plexus UK” and together with Plexus, PISL, PM and Plexus Romania, each, a “Seller”, and collectively, the “Sellers”), Plexus, as  Seller Representative and as Guarantor, and MUFG Bank, Ltd. (f/k/a The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch) (the “Purchaser”).
WITNESSETH:
WHEREAS, the Seller Representative, the Sellers, the Guarantor and the Purchaser are parties to that certain Amended and Restated Master Accounts Receivable Purchase Agreement, dated as of December 14, 2016 (as amended, modified or restated from time to time prior to the date hereof, the “Existing Agreement” and as amended by this Amendment, the “MARPA”); and
WHEREAS, the Sellers have requested that the Existing Agreement be amended as set forth below and the Purchaser has agreed to such request.
NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, the parties hereto hereby agree as follows:
SECTION 1. Defined Terms. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Existing Agreement.
SECTION 2. Amendment. Effective as of the Effective Date (as defined in Section 3 hereof), the Existing Agreement is hereby amended as follows:
(a)    The defined term “Maximum Facility Amount” in Section 1.1 of the Existing Agreement shall be amended by deleting therein the number “$230,000,000” and replacing it with “$260,000,000”.
(b)    Schedule A to the Existing Agreement shall be amended and restated in its entirety to read as set out on Annex A attached to this Amendment.
SECTION 3. Conditions to Effectiveness.  This Amendment shall become effective as  of the date on which the Purchaser shall have received, in form and substance satisfactory to it (the “Effective Date”) this Amendment, duly executed by the Sellers, the Seller Representative and the Guarantor.
SECTION 4.  Representations and Warranties; Reaffirmation. 
(a)    Representations and Warranties.  To induce the Purchaser to enter into  this Amendment, each of the Seller Representative and the Sellers hereby represents and warrants to the Purchaser that as of the date hereof, the representations and warranties made by the Sellers in the Existing Agreement 

are true and correct in all material respects on and as of such date as if made on and as of such date (except to the extent such representation or warranty expressly relates to an earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date).
(b)    Reaffirmation. Each Seller, by its signature below, hereby (i) agrees that, notwithstanding the effectiveness of this Amendment, the MARPA continues to be in full force and effect (as expressly amended hereby) and (ii) affirms and confirms its obligations under each of the Purchase Documents to which it is a party.  On and after the effective date of this Amendment, each reference in the MARPA to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the MARPA and each reference in the other documents referred to in the MARPA, “thereunder”, “thereof” or words of like import referring to the MARPA (as the case may be), shall mean and be a reference to the Purchase Agreement as amended by this Amendment. This Amendment shall constitute a Purchase Document.
(c)    Affirmation and Consent of Guarantor. Guarantor hereby consents to the amendment of the Purchase Agreement made by this Amendment, and hereby affirms and agrees that its unconditional and irrevocable guaranty contained in Section 11.4 of the Purchase Agreement is, and shall continue to be, in full force and effect and is hereby ratified and affirmed in all respects, and that, on and after the effective date of this Amendment, each reference in the Purchase Agreement (including in Section 11.4 thereof) to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Purchase Agreement, shall mean and be a reference to the Purchase Agreement as amended by this Amendment.
SECTION 5. Counterparts. This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts (including by facsimile or electronic transmission of signature pages hereto), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  A facsimile or electronic copy of an executed counterpart of this Amendment shall be effective as an original for all purposes.
SECTION 6. Severability. Any provision of this Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
SECTION 7.   Explicit Acceptance.  Plexus Romania hereby represents that:
(a)    it has reviewed and understood the provisions of this Amendment and it agrees with the terms thereof;
(b)    has independently decided to enter into the Amendment on the basis of its own assessment or, where it has considered necessary, based on the legal, financial or technical expertise of external independent consultants selected by it;
(c)    it is capable of understanding (by itself or assisted by any consultants that it has considered necessary) and understands and accepts the contents of all the (internal and external) clauses and all the rights and obligations it undertakes through this Amendment; and
(d)    each clause of this Amendment has been negotiated by or on behalf of Plexus Romania with the Purchaser or their representatives (for the purpose of this Clause “negotiation” meaning 

both the exchange of proposals between parties or their representatives which has resulted in a final agreement in relation to certain clauses, and the unconditional acceptance by a party of the clauses proposed by the other party). In particular, Plexus Romania explicitly represents that it understands and accepts each and all unusual standard clauses (as defined by Article 1203 of the Romanian Civil Code, to the extent applicable) in this Amendment and MARPA.
SECTION 8. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

[remainder of page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment  to  be executed by their respective officers thereunto duly authorized, as of the date first above written.

SELLERS:

PLEXUS CORP.
	
		
	By:
	/s/ Patrick J. Jermain

	Name:
	Patrick J. Jermain

	Title:
	Senior Vice President & Chief Financial Officer

PLEXUS INTL SALES & LOGISTICS, LLC
	
		
	By:
	/s/ Angelo M. Ninivaggi

	Name:
	Angelo M. Ninivaggi

	Title:
	Vice President & Secretary

PLEXUS SERVICES RO SRL
	
		
	By:
	/s/ Oliver K. Mihm

	Name:
	Oliver K. Mihm

	Title:
	Director

	
		
	By:
	/s/ Angelo M. Ninivaggi

	Name:
	Angelo M. Ninivaggi

	Title:
	Vice President & Secretary

PLEXUS  CORP. (UK) LIMITED
	
		
	By:
	/s/ Oliver K. Mihm

	Name:
	Oliver K. Mihm

	Title:
	Director

PLEXUS MANUFACTURING SDN. BHD
	
		
	By:
	/s/ Lim Yong Jim

	Name:
	Lim Yong Jim

	Title:
	Director

[Signature Page Amendment No. 8]

PURCHASER:
MUFG BANK, LTD. 
(f/k/a THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
NEW YORK BRANCH)
	
		
	By:
	/s/ Richard Gregory Hurst

	Name:
	Richard Gregory Hurst

	Title:
	Managing Director

[Signature Page Amendment No. 8]

ANNEX A
SCHEDULE A TO AMENDED AND RESTATED MASTER ACCOUNTS RECEIVABLE PURCHASE AGREEMENT
Approved Obligors
	
				
	Approved Obligor
	Approved Obligor Sublimit (USD)
	Approved Obligor Buffer Period (days)
	Applicable Margin

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