Document:

Exhibit 10.1

 

Execution Copy

 

STOCKHOLDER VOTING AGREEMENT

 

THIS STOCKHOLDER VOTING AGREEMENT (this “Agreement”) is made and entered into as of December 12, 2013, by and between Sonus Networks, Inc., a Delaware corporation (“Parent”) and the undersigned stockholder (“Stockholder”) of Performance Technologies, Incorporated, a Delaware corporation (the “Company”).

 

RECITALS

 

A.                                    Concurrently with the execution and delivery hereof, Parent, Purple Acquisition Subsidiary, Inc., a Delaware corporation and a direct wholly owned subsidiary of Parent (“Merger Sub”), and the Company are entering into an Agreement and Plan of Merger of even date herewith (as it may be amended or supplemented from time to time pursuant to the terms thereof, the “Merger Agreement”), which provides for the merger (the “Merger”) of Merger Sub with and into the Company in accordance with its terms.

 

B.                                    Stockholder is the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of such number of shares of each class of capital stock of the Company as is indicated on the signature page of this Agreement.

 

C.                                    As a material inducement to the willingness of Parent and Sub to enter into the Merger Agreement, Parent has required that Stockholder enter into this Agreement.

 

NOW, THEREFORE, intending to be legally bound, the parties hereby agree as follows:

 

1.                                      Certain Definitions.

 

(a)                                 Capitalized terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Merger Agreement.  For all purposes of and under this Agreement, the following terms shall have the following respective meanings:

 

“Constructive Sale” means with respect to any security, a short sale with respect to such security, entering into or acquiring a derivative contract with respect to such security, entering into or acquiring a futures or forward contract to deliver such security or entering into any other hedging or other derivative transaction that has the effect of either directly or indirectly materially changing the economic benefits or risks of ownership of such security.

 

“Shares” means (i) all shares of capital stock of the Company owned, beneficially or of record, by Stockholder as of the date hereof, and (ii) all additional shares of capital stock of the Company acquired by Stockholder, beneficially or of record, during the period commencing with the execution and delivery of this Agreement and expiring on the Expiration Date (as such term is defined in Section 13 below).

 

“Transfer” means, with respect to any security, the direct or indirect assignment, sale, transfer, tender, exchange, pledge, hypothecation, or the grant, creation or suffrage of a lien, security interest or encumbrance in or upon, or the gift, grant or placement in trust, or the Constructive Sale or other disposition of such security (including transfers by testamentary or intestate succession, by domestic relations order or other court order, or otherwise by operation of law) or any right, title or interest therein (including any right or power to vote to which the holder thereof may be entitled, whether such right or power is granted by proxy or otherwise), or the record or beneficial ownership thereof, the offer to make such a sale, transfer, Constructive Sale

 

 

or other disposition, and each agreement, arrangement or understanding, whether or not in writing, to effect any of the foregoing.

 

2.                                      Transfer and Voting Restrictions.

 

(a)                                 At all times during the period commencing with the execution and delivery of this Agreement and expiring on the Expiration Date (as defined in Section 13 hereof), Stockholder shall not, except in connection with the Merger, Transfer or suffer a Transfer of any of the Shares.

 

(b)                                 Except as otherwise permitted by this Agreement or by order of a court of competent jurisdiction, Stockholder will not commit any act that could restrict or affect Stockholder’s legal power, authority and right to vote all of the Shares then owned of record or beneficially by Stockholder or otherwise prevent or disable Stockholder from performing any of his obligations under this Agreement.  Without limiting the generality of the foregoing, except for this Agreement and as otherwise permitted by this Agreement, Stockholder shall not enter into any voting agreement with any person or entity with respect to any of the Shares, grant any person or entity any proxy (revocable or irrevocable) or power of attorney with respect to any of the Shares, deposit any of the Shares in a voting trust or otherwise enter into any agreement or arrangement with any person or entity limiting or affecting Stockholder’s legal power, authority or right to vote the Shares in favor of the approval of the Proposed Transaction (as defined in Section 3(a) hereof).

 

(c)                                  Stockholder understands and agrees that if Stockholder attempts to Transfer, vote or provide any other person or entity with the authority to vote any of the Shares other than in compliance with this Agreement, Parent may advise the Company of the existence of this Agreement to avoid noncompliance herewith, and further Stockholder hereby unconditionally and irrevocably instructs the Company to not, (i) permit any such Transfer on its books and records, (ii) issue a new certificate representing any of the Shares, or (iii) record such vote.

 

3.                                      Agreement to Vote Shares.

 

(a)                                 Prior to the Expiration Date, at every meeting of the stockholders of the Company called, and at every adjournment or postponement thereof, and on every action or approval by written consent of the stockholders of the Company, Stockholder (in Stockholder’s capacity as such) shall appear at the meeting or otherwise cause the Shares to be present thereat for purposes of establishing a quorum and, to the extent not voted by the persons appointed as proxies pursuant to this Agreement, vote (i) in favor of the adoption of the Merger Agreement and the approval of the other transactions contemplated thereby (collectively, the “Proposed Transaction”), (ii) against the approval or adoption of any proposal made in opposition to, or in competition with, the Proposed Transaction, and (iii) against any of the following (to the extent unrelated to the Proposed Transaction):  (A) any merger, consolidation or business combination involving the Company or any of its subsidiaries other than the Proposed Transaction; (B) any sale, lease or transfer of all or substantially all of the assets of the Company or any of its subsidiaries; (C) any reorganization, recapitalization, dissolution, liquidation or winding up of the Company or any of its subsidiaries; or (D) any other action that is intended or would result in a breach of any covenant, representation or warranty or any other obligation or agreement of the Company under the Merger Agreement or of Stockholder under this Agreement or otherwise impede, interfere with, delay, postpone, discourage or adversely affect the consummation of the Proposed Transaction (each of (ii) and (iii), a “Competing Transaction”).

 

(b)                                 If Stockholder is the beneficial owner, but not the record holder, of the Shares, Stockholder agrees to take all commercially reasonable actions necessary to cause the record holder and any nominees to vote all of the Shares in accordance with Section 3(a).

 

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4.                                      Grant of Irrevocable Proxy.

 

(a)                                 Stockholder hereby irrevocably appoints Parent and each of its executive officers or other designees (the “Proxyholders”), as Stockholder’s proxy and attorney-in-fact (with full power of substitution and re-substitution), and grants to the Proxyholders full authority, for and in the name, place and stead of Stockholder, to vote the Shares, to instruct nominees or record holders to vote the Shares, or grant a consent or approval in respect of such Shares in accordance with Section 3 hereof and, in the discretion of the Proxyholders with respect to any proposed adjournments or postponements of any meeting of Stockholders at which any of the matters described in Section 3 hereof is to be considered.

 

(b)                                 Stockholder hereby revokes any proxies heretofore given by Stockholder in respect of the Shares.

 

(c)                                  Stockholder hereby affirms that the irrevocable proxy set forth in this Section 4 is given in connection with the execution of the Merger Agreement, and that such irrevocable proxy is given to secure the performance of the duties of Stockholder under this Agreement.  Stockholder hereby further affirms that the irrevocable proxy is coupled with an interest, is intended to be irrevocable in accordance with the provisions of Section 212 of the Delaware General Corporation Law, and may under no circumstances be revoked.  The irrevocable proxy granted by Stockholder herein is a durable power of attorney and shall survive the dissolution, bankruptcy or incapacity of Stockholder.

 

(d)                                 The Proxyholders may not exercise this irrevocable proxy on any matter except as provided above.  Stockholder may vote the Shares on all other matters.

 

(e)                                  Parent may terminate this proxy at any time by written notice to Stockholder. The proxy and power of attorney granted hereunder shall terminate upon the termination of this Agreement.

 

5.                                      No Solicitation.  Subject to Stockholder’s rights in his capacity as an officer or director of the Company as set forth in Section 6 below, Stockholder shall not directly or indirectly, (a) solicit, initiate, propose, knowingly encourage or knowingly facilitate the making of any proposal or offer that constitutes, or that could reasonably be expected to lead, to an Acquisition Proposal, (b) furnish any non-public information regarding the Company or any of its subsidiaries to any person or entity in connection with or in response to an Acquisition Proposal or a proposal or offer that would result in an Acquisition Proposal, (c) engage in discussions or negotiations with any person or entity with respect to any Acquisition Proposal, (d) approve, endorse or recommend any Acquisition Proposal or (e) enter into any letter of intent or similar document or any contract contemplating or otherwise relating to any Acquisition Transaction.

 

6.                                      Action in Stockholder Capacity Only.  Stockholder is entering into this Agreement solely in Stockholder’s capacity as a record holder and beneficial owner, as applicable, of Shares and not in Stockholder’s capacity as a director or officer of the Company.  Stockholder makes no agreement or understanding in this Agreement in Stockholder’s capacity as a director or officer of the Company or any of its subsidiaries and nothing in this Agreement: (a) will limit or affect any actions or omissions taken by Stockholder in stockholder’s capacity as such a director or officer, including without limitation in exercising rights under the Merger Agreement, and no such actions or omissions shall be deemed a breach of this Agreement or (b) will be construed to prohibit, limit or restrict Stockholder from exercising Stockholder’s fiduciary duties as an officer or director to the Company or its stockholders.

 

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7.                                      Representations and Warranties of Stockholder. Stockholder hereby represents and warrants to Parent as follows:

 

(a)                                 (i) Stockholder is the beneficial or record owner of the shares of capital stock of the Company indicated on the signature page of this Agreement free and clear of any and all pledges, liens, security interests, mortgage, claims, charges, restrictions, options, title defects or encumbrances; and (ii) Stockholder does not beneficially own any securities of the Company other than the shares of capital stock and rights to purchase shares of capital stock of the Company set forth on the signature page of this Agreement.

 

(b)                                 As of the date hereof and for so long as this Agreement remains in effect (including as of the date of the Company Meeting, which, for purposes of this Agreement, includes any adjournment or postponement thereof), except as otherwise provided in this Agreement, Stockholder has full power and authority to (i) make, enter into and carry out the terms of this Agreement and to grant the irrevocable proxy as set forth in Section 4; and (ii) vote all of the Shares in the manner set forth in this Agreement without the consent or approval of, or any other action on the part of, any other person or entity (including any Governmental Entity).  Without limiting the generality of the foregoing, Stockholder has not entered into any voting agreement (other than this Agreement) with any person or entity with respect to any of the Shares, granted any person or entity any proxy (revocable or irrevocable) or power of attorney with respect to any of the Shares, deposited any of the Shares in a voting trust or entered into any arrangement or agreement with any person or entity limiting or affecting Stockholder’s legal power, authority or right to vote the Shares on any matter.

 

(c)                                  This Agreement has been duly and validly executed and delivered by Stockholder and constitutes a valid and binding agreement of Stockholder enforceable against Stockholder in accordance with its terms.  The execution and delivery of this Agreement and the performance by Stockholder of the agreements and obligations hereunder will not result in any breach or violation of or be in conflict with or constitute a default under any term of any contract to or by which Stockholder is a party or bound, or any order or legal requirement to which Stockholder (or any of Stockholder’s assets) is subject or bound, except for any such breach, violation, conflict or default which, individually or in the aggregate, would not impair or adversely affect Stockholder’s ability to perform Stockholder’s obligations under this Agreement or render inaccurate any of the representations made herein.

 

(d)                                 Except as disclosed pursuant to the Merger Agreement, no investment banker, broker, finder or other intermediary is entitled to a fee or commission from Parent, Merger Sub or the Company in respect of this Agreement or the Merger Agreement based upon any arrangement or agreement made by or on behalf of Stockholder.

 

(e)                                  Stockholder understands and acknowledges that Parent and Merger Sub are entering into the Merger Agreement in reliance upon Stockholder’s execution and delivery of this Agreement and the representations and warranties of Stockholder contained herein.

 

8.                                      Termination.  This Agreement shall terminate and be of no further force or effect whatsoever as of the earlier of (a) such date and time as the Merger Agreement shall have been validly terminated pursuant to the terms of Section 8.1 thereof or (b) the Effective Time (the “Expiration Date”); provided, however, that (i) Section 9 shall survive the termination of this Agreement, and (ii) the termination of this Agreement shall not relieve Stockholder from any liability for any inaccuracy in or breach of any representation, warranty or covenant contained in this Agreement.

 

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9.             Miscellaneous Provisions.

 

(a)           Amendments.  No amendment of this Agreement shall be effective against any party unless it shall be in writing and signed by Parent and Stockholder.

 

(b)           Waivers.  No action taken pursuant to this Agreement, including any investigation by or on behalf of any party, or any failure or delay on the part of any party in the exercise of any right hereunder, shall be deemed to constitute a waiver by the party taking such action of compliance with any representations, warranties, or covenants contained in this Agreement.  The waiver by any party of a breach of any provision hereunder shall not operate or be construed as a waiver of any prior or subsequent breach of the same or any other provision hereunder. Any waiver by a party of any provision of this Agreement shall be valid only if set forth in a written instrument signed on behalf of such party.

 

(c)           Entire Agreement.  This Agreement (including the Schedules and Exhibits hereto) constitutes the entire agreement between the parties hereto and supersedes any prior understandings, agreements or representations by or between the parties hereto, written or oral, with respect to the subject matter hereof.

 

(d)           Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of laws of any jurisdictions other than those of the State of Delaware.

 

(e)           Consent to Exclusive Jurisdiction; Venue; Service of Process.  Each of the parties hereto (i) consents to submit itself to the exclusive personal jurisdiction of the Delaware Court of Chancery, New Castle County, or if that court does not have jurisdiction, a federal court sitting in the State of Delaware in any action or proceeding arising out of or relating to this Agreement, (ii) agrees that all claims in respect of such action or proceeding may be heard and determined in any such court, (iii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, and (iv) agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court.  Each of the parties hereto waives any defense or inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety or other security that might be required of any other party with respect thereto.  Any party hereto may make service on another party by sending or delivering a copy of the process to the party to be served at the address and in the manner provided for the giving of notices in Section 9(n).  Nothing in this Section 9(e), however, shall affect the right of any party to serve legal process in any other manner permitted by law.

 

(f)            WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF THE PARENT OR THE STOCKHOLDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF.

 

(g)           Attorneys’ Fees.  In any action at law or suit in equity with respect to this Agreement or the rights of any of the parties, the prevailing party in such action or suit shall be entitled to receive its reasonable attorneys’ fees and all other reasonable costs and expenses incurred in such action or suit.

 

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(h)           Assignment and Successors.  This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns, including Stockholder’s estate and heirs upon the death of Stockholder, provided that except as otherwise specifically provided herein, neither this Agreement nor any of the rights, interests or obligations of the parties may be assigned or delegated by either of the parties without prior written consent of the other party except that Parent, without obtaining the consent of the Stockholder, shall be entitled to assign this Agreement or all or any of its rights hereunder to an Affiliate of Parent.  No assignment by Parent under this Section 9(h) shall relieve Parent of its obligations under this Agreement.  Any assignment in violation of the foregoing shall be void and of no effect.

 

(i)            No Third Party Rights.  Nothing in this Agreement, express or implied, is intended to or shall confer upon any person or entity (other than the parties) any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

(j)            Further Assurances.  Stockholder agrees to cooperate fully with Parent and to execute and deliver such further documents, certificates, agreements and instruments and to take such other actions as may be reasonably requested by Parent to evidence or reflect the transactions contemplated by this Agreement and to carry out the intent and purpose of this Agreement.  To the extent applicable in connection with the Proposed Transaction, Stockholder hereby agrees that Parent may publish and disclose in the Form S-4 Registration Statement (including all documents and schedules filed with the SEC), such Stockholder’s identity and ownership of Shares and the nature of such Stockholder’s commitments, arrangements and understandings under this Agreement and may further file this Agreement as an Exhibit to the Form S-4 Registration Statement or in any other filing made by Parent with the SEC relating to the Proposed Transaction. Stockholder agrees to notify Parent promptly of any additional shares of capital stock of the Company of which Stockholder becomes the record or beneficial owner after the date of this Agreement.

 

(k)           Severability.  If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

(l)            Time of Essence.  Time is of the essence with regard to all dates and time periods set forth or referred to in this Agreement.

 

(m)          Specific Performance; Injunctive Relief.  The parties acknowledge that Parent shall be irreparably harmed by, and that there shall be no adequate remedy at law for, a violation of any of the covenants or agreements of Stockholder set forth in this Agreement.  Therefore, Stockholder hereby agrees that, in addition to any other remedies that may be available to Parent upon any such violation, Parent shall have the right to enforce such covenants and agreements by specific performance, injunctive relief or by any other means available to Parent at law or in equity without posting any bond or other undertaking.  Stockholder agrees that Stockholder will not oppose the granting of any injunction, specific performance or other equitable relief on the basis that Parent has an adequate remedy of law or an injunction, award of specific performance or other equitable relief is not an appropriate remedy for any reason at law or in equity.

 

(n)           Notices.  All notices and other communications hereunder shall be in writing and shall be deemed duly delivered (i) four business days after being sent by registered or certified mail, return receipt requested, postage prepaid, (ii) one business day after being sent for next business day delivery, fees prepaid, via a reputable nationwide overnight courier service or (iii)  the business day after the date of transmission, if such notice or communication is delivered via facsimile or e-mail (upon

 

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confirmation of receipt):  (A) if to Parent, to the address provided in the Merger Agreement, including to the persons designated therein to receive copies; and (ii) if to Stockholder, to Stockholder’s address shown below Stockholder’s signature on the last page hereof.

 

(o)           Counterparts and Signature.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties hereto and delivered to the other party, it being understood that all parties need not sign the same counterpart.  This Agreement may be executed and delivered by facsimile or “PDF” transmission.

 

(p)           Interpretation.  When reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated.  The headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.  The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party.  Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.  Any reference to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”

 

(q)           Rules of Construction.  Each party hereto has participated in the drafting of this Agreement, which each party acknowledges is the result of extensive negotiations between the parties.  If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision.

 

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IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed as of the date first above written.

 

	
 
    	
 
    	
 
    
	
PARENT:   
    	
 
    	
STOCKHOLDER:  
    
	
SONUS   NETWORKS, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Raymond P. Dolan
    	
 
    	
/s/   John M. Slusser 
    
	
By:   Raymond P. Dolan
    	
 
    	
By:   John M. Slusser
    
	
Its:   President and Chief Executive Officer
    	
 
    	
Its:   
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

Shares Beneficially Owned by Stockholder:

 

254,761 shares of Company Common Stock

 

0 shares of Company Preferred Stock

 

405,000 Company Stock Options to acquire Company Common Stock

 

8Exhibit 10.40

CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

LICENSE AGREEMENT

This Agreement is made as of the date of the signature of the last party to execute this Agreement (“Effective Date”) between Integral Technologies, Inc., a Nevada corporation, 805 West Orchard Street, #7 Bellingham, WA 98225, U.S.A. ("LICENSOR"),

AND

Hanwha L&C Corp. a South Korea corporation, Hanwha building Janggyo-dong 1 Jung-gu Seoul, South Korea ("LICENSEE"), hereinafter referred to individually as the "Party" and collectively as the "Parties".

WHEREAS, LICENSEE develops, manufactures and supplies a variety of thermoplastic and thermoset composites and components; and

WHEREAS, LICENSOR is a company that engages in the discovery, development, and commercialization of electrically conductive hybrid plastics used primarily as raw materials in the production of industrial, commercial and consumer products and services worldwide.

NOW, THEREFORE, the Parties agree as follows:

	ARTICLE 1	DEFINITIONS

In this Agreement, the following terms have the following meanings and the singular shall incorporate the plural and vice versa:

1.1           “Affiliate” shall mean with respect to either Party any entity or entities directly or indirectly (i) controlling or (ii) controlled by or (iii) under common control by, one of the Parties.  As used in this definition the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a party, whether through ownership of voting securities, by contract or otherwise.

 

 

CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

		1.2	“Agreement” means this license agreement signed by LICENSOR and LICENSEE.

		1.3	“Customer” means a company that manufactures or uses End Products.

1.4           “End Product(s)” means part produced using a Product supplied by LICENSEE or its Affiliates in accordance with the terms of this Agreement.

1.5           “Headquartered” means a company that is incorporated in South Korea or whose primary place of business is in South Korea.

1.6           “Patent(s)” means any and all patents, described in Appendix 1 of this Agreement, and any reissue, renewal or extension thereof, that relate to moldable composite capsules and moulding parts and the method of manufacturing moldable composite capsules and moulding parts and are owned or controlled now, or hereafter during the Term, by LICENSOR and any improvements thereto which are the subject of a patent application owned or hereafter controlled now, or hereafter during the Term, by LICENSOR.

1.7           “Product” means moldable composite capsule made with nickel plated carbon fiber, stainless steel fiber or other conductive materials and thermoplastic resin based material, and made using LICENSOR’s Technology or Patents.

1.8           “Royalty Fees” means the payments to be paid by LICENSEE according to the provisions of Article 7.

1.9           “Selling Price” means the sale price of the Product sold by LICENSEE or its Affiliates to the Customer without all selling taxes.

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CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

1.10         “Technology” means the technology which is owned by LICENSOR and is used to develop, manufacture, sell, use or mould Product, including but not limited to the know-how as described in Appendix 2 of this Agreement.

		1.11	“Territory” means South Korea, China, Japan and Taiwan.

		1.12	“Term” shall have the meaning set forth in Section 3.1.

 

	ARTICLE 2	PURPOSE

The purpose of this Agreement is to set forth the terms and conditions under which LICENSOR authorizes LICENSEE to manufacture and sell Product to the Customer.

	ARTICLE 3	TERM AND TERMINATION

3.1           Unless terminated earlier as provided herein, this Agreement shall continue in full force and effect for an initial period of ten (10) years from its Effective Date and shall be renewed for one (1) year periods thereafter by tacit renewal unless terminated by either Party by a prior written notice sent to the other three (3) months before the expiration of the initial term or renewal period (“Term”).

3.2           LICENSOR may elect to terminate this Agreement upon sixty (60) days prior written notice to LICENSEE if:

3.2.1        LICENSEE becomes bankrupt, insolvent, or its business is placed in the hands of a receiver, assignee, or trustee in bankruptcy;

3.2.2        LICENSEE files for dissolution of its corporate structure;

3.2.3        LICENSEE challenges the validity or enforceability of any of the Patents;

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CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

3.2.4        LICENSEE fails to establish manufacturing lines to produce Product in South Korea within twenty-four (24) months of the Effective Date; or

3.2.5        LICENSEE fails to maintain capacity to meet demand for the Product.

3.3           LICENSEE may elect to terminate this Agreement upon sixty (60) days prior written notice to LICENSOR if:

3.3.1        LICENSOR becomes bankrupt, insolvent, or its business is placed in the hands of a receiver, assignee, or trustee in bankruptcy; or

3.3.2        LICENSOR files for dissolution of its corporate structure.

3.4           In the event of an alleged material breach by either Party of any of the terms of this Agreement, the Party suffering such breach shall give notice to the other, in writing, thereof, specifying the type and circumstances pertaining to such breach in form sufficient to enable opportunity for correction thereof by the Party allegedly in breach.  If such breach shall not have been remedied during a thirty (30) day period immediately following the receipt of such notice, the Party giving such notice shall have the right to notify the other in writing of its decision to terminate this Agreement.  In the event that the breach is remedied within such thirty (30) day period, this Agreement shall continue in full force and affect the same as if no notice had been given.  Waiver by any Party of its right to terminate because of any one breach shall not constitute a waiver of any subsequent breach of the same or of a different nature.  No termination of this Agreement by expiration or otherwise shall relieve or release any Party from any of its obligations hereunder with respect to obligations due or acts committed under this Agreement.

3.5           Immediately upon expiration or termination of this Agreement for any reason:

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CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

3.5.1      LICENSEE shall cease all use of or practice of the Technology and Patents and LICENSOR may purchase from LICENSEE any Product manufactured prior to such expiration or termination.  If LICENSOR does not purchase such Product, LICENSEE may sell such Product to Customers in South Korea at the prevailing market price, until Licensee sells all of such Product.

3.5.2        LICENSEE shall pay to LICENSOR the unpaid balance of any Royalty Fees, which shall be due through the expiration or termination date and including any Royalty Fees due to sales pursuant to Section 3.5.1, in accordance with the provisions of Article 7.

3.5.3      The Parties will return to the other Party or destroy all Confidential Information received from such Party pursuant to this Agreement, including all copies or summaries of such Confidential Information; provided, that the receiving Party may retain a reasonable number of copies of such Confidential Information for archival purposes and for the purposes of satisfying any applicable legal or regulatory record retention requirements.

3.6           The provisions of Sections 3.5, 5.2, 5.4 and Articles 7, 11, 12 and 13 shall survive expiration or termination of this Agreement.

	ARTICLE 4	GRANT OF LICENSE

4.1          For the Term of this Agreement, LICENSOR grants to LICENSEE and its Affiliates, an exclusive, non-transferable, nonsublicensable, license to use the Technology furnished to LICENSEE under this Agreement for LICENSEE to manufacture Product in South Korea and to sell and distribute Product to Customers in South Korea.

4.2          Except as provided in Section 4.5, for the Term of this Agreement, LICENSOR grants LICENSEE and its Affiliates, a non-exclusive, non-transferable, nonsublicensable, license to use the Technology furnished to LICENSEE under this Agreement for LICENSEE to sell and distribute Product to Customers in China, Japan and Taiwan, provided the Product is made by LICENSEE or its Affiliates in South Korea.

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CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

4.3           Except as provided in Section 4.5, for the Term of this Agreement, LICENSOR grants LICENSEE and its Affiliates permission to sell Product outside of South Korea for LICENSEE’s Customers Headquartered in South Korea based on orders for Product originating in South Korea.

4.4           For the Term of this Agreement, LICENSOR agrees that LICENSOR will not grant to a third party an exclusive license under the Technology to manufacture, sell and distribute Product in China.

4.5          If LICENSOR grants another party an exclusive license to use the Technology or Patents for Japan or Taiwan, to the extent reasonably necessary to grant such license, LICENSOR may terminate the licenses granted in Sections 4.2 and 4.3 by giving LICENSEE sixty (60) days prior written notice thereof.  In the event of such termination, LICENSEE shall retain the license for the Term of this Agreement to deliver the types of Product existing at the time of such termination to LICENSEE’s Customers.  However, LICENSEE’s license shall not extend to new Customers or new types of Products.

4.6           LICENSOR shall have the right to sell and distribute Product in South Korea provided Product is made by LICENSEE.  LICENSOR and LICENSEE agree to negotiate a manufacturing agreement under which LICENSEE will manufacture Product in South Korea and sell Product to LICENSOR on terms and conditions reasonably acceptable to LICENSOR and LICENSEE, on a non-exclusive basis in and outside of the Territory.

4.7           LICENSOR agrees not to assert any claims under the patents listed in Appendix 3 against LICENSEE, LICENSEE’s Affiliate or a Customer of LICENSEE for making or using an End Product.

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4.8           LICENSOR and LICENSEE will use commercially reasonable efforts to utilize a common global supplier system for material, for use in Product that meet reasonable pricing and quality standards.

	ARTICLE 5	INFORMATION

5.1           LICENSOR agrees to furnish to LICENSEE, within sixty (60) days of the Effective Date of this Agreement, the Technology identified in Appendix 2, attached hereto and made a part hereof.

5.2           LICENSEE agrees to use reasonable efforts, but no less than the efforts it uses to protect its own information of similar sensitivity, to maintain all Technology furnished hereunder and marked “Confidential” or “Proprietary” secret and confidential (“Confidential Information”) for as long as LICENSOR maintains such Technology confidential.  Any Technology first disclosed hereunder orally shall be reduced to writing, marked “Confidential” or “Proprietary” and transmitted to LICENSEE within thirty (30) days of the oral disclosure or it will not be subject to the obligations of this Section 5.2.

5.3           Nothing in this Agreement shall apply to any information (whether LICENSEE or LICENSOR):

5.3.1        Which is now generally known or readily available to the trade or public or which becomes so known or readily available without the fault of the receiving Party;

5.3.2        Which is known or possessed by the receiving Party without restriction as to disclosure or use prior to its receipt hereunder;

5.3.3        Which is disclosed in any issued patent, publication, or other source from and after the time it becomes generally available to the public; or

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5.3.4        Which is disclosed pursuant to governmental, regulatory or judicial order; provided, however, that the receiving Party shall have first given the disclosing Party written notice thereof and provided reasonable opportunity to seek a protective order.

5.4           In order to facilitate compliance with regulations of the United States Government concerning the export of technical information, the Parties agree that any technical information not in the public domain (whether written or otherwise) first received hereunder from the other, will not, without the prior written permission of the disclosing Party, knowingly be transmitted by the receiving Party, directly or indirectly, in violation of the United States Government regulations, as issued from time to time relating to the exportation of technical data.

5.5           If LICENSEE requests technical assistance from LICENSOR, LICENSOR shall provide LICENSEE technical assistance.  If LICENSEE requests LICENSOR’s employees to travel for the purpose of technical consultation related to Technology, LICENSEE shall pay to LICENSOR [*] United States Dollars ($[*]) per day per person.

5.6           LICENSEE will be responsible for the reasonable travel and living expenses associated with the assistance provided in Section 5.5.

	ARTICLE 6	INITIAL PAYMENT

LICENSEE shall pay LICENSOR an initial payment of [*]United States Dollars ($[*]) payable as follows:

a. $[*]no later than fifteen (15) business days after execution of this Agreement; and

b. $[*] no later than [*] ([*]) year after execution of this Agreement.

_________________

[*] Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portion.

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	ARTICLE 7	ROYALTY FEES

7.1           LICENSEE shall  not be responsible for paying Royalty Fees (a) after [*] years from the date when annual Royalty Fees reach $[*], or (b) when the Patents in Appendix 1 expire or are annulled.  LICENSEE agrees to pay to LICENSOR [*]percent ([*]%) of the Selling Price of all Product sold by or for LICENSEE or its Affiliates to a Customer under this Agreement. In the event that Product is used to make an End Product by LICENSEE or LICENSEE’s Affiliate, the Royalty Fee is imposed only on the Product, not on the End Product. The Selling Price of the Product that is (a) transferred by LICENSEE or its Affiliates without generating a Selling Price; or (b) used to make End Products by LICENSEE or its Affiliates is the average price that the same or similar Product is sold at to Customers by LICENSEE during the period of Section 7.5.  If such average price is not available, a commercially reasonable price will apply.

7.2           All payments will be made in U.S. dollars.  Payments due on Selling Price in the currency of countries foreign to the U.S. shall be calculated in U.S. dollars after the amount of the Selling Price in foreign currency has been converted into U.S. dollars using the applicable foreign exchange rate listed in the Wall Street Journal for the last day of the calendar quarter.  Unless otherwise directed by LICENSOR, all payments made hereunder by LICENSEE shall be made by wire transfer to

Key Bank

1221 North State Street

Bellingham, WA  98225

ABA number:

Account number:

Swift Code:

in immediately available United States funds.

7.3     Under this Agreement, Product shall be considered sold or otherwise transferred when LICENSEE invoices a Customer.

_________________

[*] Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portion.

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7.4           LICENSEE shall keep full, true and accurate books of account containing all particulars which may be necessary for the purpose of determining the amount payable to LICENSOR under this Agreement.  Said books and the supporting data shall be open at all reasonable times, for three (3) years following the end of the calendar year to which they pertain, to an inspection, on a confidential basis, by an independent certified public accountant retained by LICENSOR, at LICENSOR’s expense, and reasonably acceptable to LICENSEE, for the purposes of verifying LICENSEE’s payments, or LICENSEE’s compliance in other respects with this Agreement.  A copy of the report of the independent certified public accountant shall be given to LICENSEE.  Should such inspection and resulting report indicate an underpayment by LICENSEE, then LICENSEE shall immediately pay such amount to LICENSOR with interest at five (5) points above prime rate as published by The Wall Street Journal at the time of the inspection, and should such underpayment be in excess of ten (10%) percent LICENSEE shall also bear all costs of the audit.

7.5           LICENSEE, within sixty (60) days following the end of each six month period ending on June 30 and December 31 of each year, shall deliver to LICENSOR a true and accurate report, certified by an officer of LICENSEE, giving such particulars of the business conducted by LICENSEE hereunder as are pertinent to an accounting for royalties under this Agreement.  These shall include at least the following: 

7.5.1        the weight and type of Product sold by LICENSEE and the Selling Price for each; and

7.5.2        total Selling Price and total royalties due.

 

Concurrently with the delivery of each such report, LICENSEE shall pay to LICENSOR the amount due for the period covered by such report.  If no payments are due, it shall be so reported.  With the first report so made, LICENSEE shall report and pay over to LICENSOR all amounts due under this Agreement from the Effective Date.

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7.6           All taxes imposed on the Royalty Fees in South Korea shall be paid by LICENSEE and all other taxes imposed on the Royalty Fees in the United States shall be paid by LICENSOR.

7.7           All taxes and bank commissions related to such bank transfer in South Korea shall be paid by LICENSEE and all other taxes and bank commissions related to such bank transfer in the United States shall be paid by LICENSOR.

	ARTICLE 8	PATENT PROSECUTION

8.1           LICENSOR shall be responsible for carrying out all of the following actions in the countries of the Territory which LICENSOR selects for patent coverage and in which LICENSEE requests LICENSOR to obtain patent coverage, unless LICENSOR declines to obtain such coverage, in which case LICENSEE, in the name of LICENSOR, may carry out one or more of the following actions:

8.1.1        to seek or continue to seek or maintain patent protection in any country in the Territory on the Technology and Product;

8.1.2        to file for, procure and maintain patents in any country in the Territory on the Technology and Product; and

8.1.3        to seek or continue to seek or maintain protection in the Territory of other proprietary rights relating to the Technology and Product.

8.2          If LICENSOR elects not to seek or continue to seek or maintain patent protection on the Technology or the Product in any country in the Territory, LICENSEE shall have the right, after receiving notice thereof from LICENSOR, to file, procure and maintain on behalf of LICENSOR, at LICENSEE’s expense, in such country or countries patents on the Technology or such Product.  LICENSOR agrees to advise LICENSEE of all decisions taken related to patent protection in the Territory in a timely manner and to undertake any actions, make available any inventors and execute any documents necessary to file, procure and maintain on behalf of LICENSOR in such country or countries patents in the Territory on the Technology or Product.

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8.3           Copies of all substantive communication to the patent offices in the Territory regarding applications or patents on the Technology sent or received by LICENSOR or LICENSEE, as the case may be, shall be provided to the other Party promptly after the sending or receipt thereof; and insofar as possible, copies of proposed substantive communications to such patent office shall be provided to such other Party in sufficient time before the due date in order to enable such other Party an opportunity to comment on the content thereof.

8.4           Any action undertaken in connection with this Article 8 by LICENSEE shall be carried out pursuant to the instructions provided by LICENSOR.

	ARTICLE 9	PROTECTION OF PROPERTY RIGHTS

9.1           LICENSEE agrees that it has not acquired, shall not acquire hereby, and shall not assert or pursue any right, title or interest to the Technology, and Patents from LICENSOR except as expressly licensed or otherwise conveyed hereunder.

9.2          LICENSEE shall notify LICENSOR immediately of all claims that LICENSEE’s use of the Technology or Patents infringe the intellectual property of rights of any other person or entity.  LICENSEE shall also notify LICENSOR immediately of any and all instances about which it knows which might constitute an infringement or improper use of any of the Technology or Patents, and shall cooperate with LICENSOR, at LICENSOR’s expense and pursuant to LICENSOR’s direction and control, to prevent such infringement or use.

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9.3           LICENSEE shall not use the Technology or Patents except as expressly authorized by this Agreement.

9.4           In any event that LICENSOR is unwilling to prosecute a patent infringer, in South Korea, LICENSEE shall have the right to seek redress on its own, at its expense, and to retain the entire amount of any award granted.  In such event, LICENSOR shall cooperate with LICENSEE, at LICENSEE’s expense and pursuant to LICENSEE’s direction and control, in the prosecution of such infringer.  It is agreed by the Parties that LICENSOR shall not be obliged to undertake any action to prosecute infringers.

	ARTICLE 10	WARRANTY

10.1         LICENSEE represents, warrants and covenants to LICENSOR as follows:

10.1.1     LICENSEE is a corporation duly organized, validly existing and in good standing under the laws of South Korea.  LICENSEE has all necessary power and authority to execute and deliver this Agreement and to perform its obligations hereunder.

10.1.2     The execution, delivery and performance by LICENSEE of this Agreement and the consummation of the transaction contemplated hereby has been duly and validly authorized by all requisite corporate action, and no other corporate act or proceeding on the part of LICENSEE is necessary to authorize the execution, delivery and performance of this Agreement and the consummation of the transaction contemplated hereby.

10.1.3     LICENSEE is not subject to nor obligated under its certificate of formation or bylaws, any applicable law, rule or regulation of any governmental authority, or any agreement, instrument, license or permit, or subject to any order, writ, injunction or decree, which would be breached or violated by its execution, delivery or performance of this Agreement.

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10.1.4     LICENSEE’s execution and delivery of this Agreement and performance of its obligations hereunder, including the obligation of payments hereunder, do not and will not conflict with, violate, or result in any default under any agreement, instrument or other contract to which LICENSEE is a party or by which it is bound.

10.1.5     There are no claims, actions, suits, or other proceedings pending, or to the knowledge of LICENSEE threatened, which, if adversely determined, would adversely affect the ability of LICENSEE to consummate the transactions contemplated by this Agreement or perform its obligations hereunder.

10.1.6     LICENSEE shall at all material times comply with all applicable laws and regulations relating to the manufacture, sale and distribution of Product.

10.2     LICENSOR represents, warrants and covenants to LICENSEE as follows:

10.2.1     LICENSOR is a corporation duly organized, validly existing and in good standing under the laws of Nevada.  LICENSOR has all necessary power and authority to execute and deliver this Agreement and to perform its obligations hereunder.

10.2.2     The execution, delivery and performance by LICENSOR of this Agreement and the consummation of the transaction contemplated hereby has been duly and validly authorized by all requisite company action, and no other company act or proceeding on the part of LICENSOR is necessary to authorize the execution, delivery and performance of this Agreement and the consummation of the transaction contemplated hereby.

10.2.3     LICENSOR is not subject to nor obligated under its certificate of formation or bylaws, any applicable law, rule or regulation of any governmental authority, or any agreement, instrument, license or permit, or subject to any order, writ, injunction or decree, which would be breached or violated by its execution, delivery or performance of this Agreement.

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10.2.4     LICENSOR’s execution and delivery of this Agreement and performance of its obligations hereunder, do not and will not conflict with, violate, or result in any default under any agreement, instrument or other contract to which LICENSOR is a party or by which it is bound.

10.2.5     There are no claims, actions, suits, or other proceedings pending, or to the knowledge of LICENSOR threatened, which, if adversely determined, would adversely affect the ability of LICENSOR to consummate the transactions contemplated by this Agreement or perform its obligations hereunder.

10.2.6      LICENSOR is the sole owner of the patents and patent applications listed in Appendix 1 free and clear of all liens.

10.2.7      LICENSOR is the sole owner of the Technology free and clear of all liens.

10.2.8      Except for the Patents listed in Appendix 1 and 3, LICENSOR does not own or control any other patents that would be necessary to manufacture and sell the Product.

	ARTICLE 11	INDEMNIFICATION

11.1         LICENSEE shall indemnify, defend and hold LICENSOR and its Affiliates, as well as their respective officers, directors, agents, employees, successors and assigns, harmless from and against any and all claims, suits, damages, liabilities, costs and expenses including, but not limited to, court costs and reasonable attorneys fees, arising out of, based on or in any other manner related to breach of this Agreement by LICENSEE.

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11.2         LICENSOR shall indemnify, defend and hold LICENSEE and its Affiliates, as well as their respective officers, directors, agents, employees, successors and assigns, harmless from and against any and all claims, suits, damages, liabilities, costs and expenses including, but not limited to, court costs and reasonable attorneys fees, arising out of, based on or in any other manner related to (a) breach of this Agreement by LICENSOR, (b) infringement of a third party’s intellectual property rights by reason of LICENSEE’s manufacturing or selling Product using the Technology as suggested by LICENSOR pursuant to this Agreement, or (c) any act or omission of LICENSOR related to prosecution and maintenance in the Territories.

	ARTICLE 12	LIMIT OF LIABILITY

12.1        Under no circumstances shall either party be liable under any theory of recovery, whether based in contract, in tort (including negligence and strict liability), under warranty, or otherwise, for any indirect, special, incidental or consequential loss or damage whatsoever, including but not limited to damage to or loss of property or equipment; loss of profits or revenue; or increased costs of any kind.

 

12.2         Under no circumstances shall the total aggregate liability of LICENSOR, under any theory of recovery, whether based in contract, in tort (including negligence and strict liability), under warranty, or otherwise, exceed five hundred thousand ($500,000.00) dollars.

 

	ARTICLE 13	GENERAL

13.1        The Parties are each independent businesses and neither is nor shall it act as the representative or agent of the other for any purpose.  No Party shall have the right or authority to assume, create or incur any liability or obligation of any kind, express or implied, against, in the name of, or on behalf of the other Party.

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13.2        No Party shall be deemed in breach of this Agreement by reason of failure of or delay in performance of any obligation due to war, insurrection, civil disorder, fire, storm or natural calamity, governmental order, law or decree, or other act of force majeure or cause beyond its reasonable control, provided that the Party whose performance is inhibited thereby shall use all reasonable efforts to overcome the effect of said force majeure.

13.3         All notices required or contemplated by this Agreement shall be written, in English, and shall be deemed delivered if sent postage prepaid, certified or registered mail, to the address indicated below or to such other address as a Party may notify the other Party.  All notices shall also be sent by facsimile to the number indicated, but the sending or attempted sending of a facsimile communication shall not constitute effective notice.

		If to LICENSOR:	Integral Technologies, Inc.

Attention: President

805 West Orchard Street, #7 Bellingham, WA 98225

Telephone:  +1.360.752.1982 Ext. 1

Fax:  +1.360.752.1983

		If to LICENSEE:	Hanwha L&C Corp.

Attention: President

Hanwha building Janggyo-dong 1 Jung-gu Seoul, South Korea

Telephone: +82.2.729.2220

Fax: +82.2.729.2095

13.4         This Agreement shall be governed by and construed in accordance with the laws of the State of New York, United States, without regard to its conflicts of law principles.

13.5         The Parties hereto shall use commercially reasonable efforts to resolve by mutual agreement any disputes, controversies or differences which may arise from, under, out of or in connection with this Agreement. Any and all disputes or claims between the Parties arising out of or related to this Agreement which cannot be resolved through discussions shall be finally settled through arbitration in New York, NY by three arbitrators under the American Arbitration Association commercial arbitration rules (“Rules”).  The arbitration shall be conducted in English.  Each Party shall nominate one arbitrator within fifteen (15) days after such dispute is submitted to arbitration.  The third arbitrator shall be chosen by the two arbitrators nominated by the Parties.  If the two arbitrators cannot agree on the nomination of the third arbitrator, then such arbitrator shall be appointed in accordance with the Rules.  The costs of the arbitration, and which Party will bear all or part of the costs and expenses (including reasonable attorneys’ fees and costs) will be decided by the arbitrators.  The award of the arbitrators shall be final and binding.  The award of the arbitrators shall be enforceable by, and judgment on the award may be entered by, any court having jurisdiction of the Party against which the award has been rendered or where assets of such Party can be located.

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13.6         This Agreement constitutes the entire agreement of the Parties with respect to its subject matter, all prior negotiations, representations, statements and agreements being merged herein.  It may not be modified or amended except by a written document making reference to this Agreement, signed by both Parties.

13.7         In the event that any provision of this Agreement is deemed as a matter of law to be unenforceable or null and void, such unenforceable or void portion of such provision shall be deemed severable from this Agreement and the remainder of this Agreement shall continue in full force and effect.

13.8         This Agreement and the rights and obligations of the Parties under this Agreement may not be assigned or transferred without the express written consent of the Parties which consent shall not be unreasonably withheld or delayed.

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13.9         Unless required by law, the Parties agree that no information concerning this Agreement shall be released for publication, advertising or any other purpose without the other Party’s prior written consent.

13.10      Where remedies for breach of contract are provided herein, those remedies are in addition to all other available remedies in this Agreement, at law or in equity, unless otherwise expressly provided herein.  Where no specific remedy for a breach of contract is specified, the non-breaching Party shall be entitled to pursue all available remedies in this Agreement, at law or in equity.

13.11       This Agreement may be executed in multiple counterparts, each of which shall be an original as against the Party who signed it and all of which shall constitute one and the same document.

Signed below by the duly authorized representatives of each Party.

	Integral Technologies, Inc.	Hanwha L&C Corp.

	By: ____________________	By: ___________________

	Name: Douglas Bathauer	Name: Chang Bum Kim

	Title: Chief Executive Officer	Title: President

	Date: June 19, 2013	Date: June19, 2013

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APPENDIX 1

PATENT DESCRIPTION

US Patent Number 7,223,469, Issued May 29, 2007:

Electriplast Moldable Composite Capsule

Abstract: Moldable capsules of a conductive loaded resin-based material are created. The moldable capsules include a conductive element core radially surrounded by a resin-based material. The conductive loaded resin-based material includes micron conductive powder(s), conductive fiber(s), or a combination of conductive powder and conductive fibers in a base resin host. The conductive element core includes between about 20% and about 50% of the total weight of the moldable capsule in one embodiment, between about 20% and about 40% in another embodiment, between about 25% and about 35% in another embodiment, and about 30% in another embodiment. The micron conductive powders are formed from non-metals, that may also be metallic plated, or from metals, that may also be metallic plated, or from a combination of non-metal, plated, or in combination with, metal powders. The micron conductor fibers preferably are of nickel plated carbon fiber, stainless steel fiber, copper fiber, silver fiber, or the like.

US Patent Number 7,708,920, Issued May 4, 2010:

Conductively Doped Resin Moldable Capsule and Method of Manufacture

Abstract: A method to form moldable capsules of a conductively doped resin-based material is realized. The method comprises compressing a bundle of micron conductive fiber strands by passing the bundle through a compressing ring. A resin-based material is extruded/pultruded onto the compressed bundle. The resin-based material and the bundle are sectioned into moldable capsules. The micron conductive fiber comprises between about 20% and about 50% of the total weight of each moldable capsule.

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APPENDIX 2

TECHNOLOGY

All trade secrets, knowledge, expertise, technology, methodology and technical information regarding the ElectriPlastTM capsule and use thereof, including, advice, guidance, directions, and instructions necessary to manufacture or use the capsule, that is owned, possessed or controlled by LICENSOR.

This shall include but not be limited to:

		1.	Manufacturing process maps outlining process for the manufacture of the ElectriPlastTM capsule, including extrusion, tooling and equipment setup, resin and fiber preparation for various fiber content and loading percentages.

		2.	Capsule formation process maps outlining capsule design that supports the concentric formation of the fiber during manufacture, as it relates to capsule weight, dimensions, fiber percentage and production speed.

		3.	Material handling specifications including process for handling, packaging, shipping, manufacturing and molding with the Product.

		4.	Global supplier list including materials supplied.

		5.	Product list including part numbers, formulation, specifications, technical data.

		6.	Sales material & technical presentations.

		7.	Password protected access to on-line digital assets including, Product images, digital photos, approved images for use in sales, marketing, promotional activities.

		8.	Product applications overview including industry specific applications and access to technical support & expertise as requested.

		9.	Manufacturing technical support as requested.

		10.	Sales & marketing support as requested.

		11.	The above support will be provided in accordance with Section 5.5.

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APPENDIX 3

END PRODUCT APPLICATION PATENTS

	
Patent Number

	
Approval Date

	
Title

	
7,829,006

	
11/09/2010

	
Method to form vehicle component devices from conductive loaded resin-based materials

	
7,829,807

	
11/09/2010

	
Low cost key actuators and other switching device actuators manufactured from conductive loaded resin-based materials

	
7,726,440

	
06/01/2010

	
Low cost vehicle electrical and electronic components and systems manufactured from conductive loaded resin-based materials

	
7,658,663

	
02/09/2010

	
Low cost electronic toys and toy components manufactured from conductive loaded resin-based materials

	
7,644,488

	
01/12/2010

	
Method to form a conductive device

	
7,644,495

	
01/12/2010

	
Method of forming a conductive device using conductive resin-base materials

	
7,949,521

	
06/23/2009

	
Low cost electrical power connectivity for railway systems manufactured from conductive loaded resin-based materials

	
7,432,448

	
10/07/2008

	
Low cost aircraft structures and avionics manufactured from conductive loaded resin-based materials

	
7,425,885

	
09/16/2008

	
Low cost electrical fuses manufactured from conductive loaded resin-based materials

	
7,372,422

	
05/13/2008

	
Low cost electronic probe devices manufactured from conductive loaded resin-based materials

	
7,372,127

	
05/13/2008

	
Low cost and versatile resistors manufactured from conductive loaded resin-based materials

	
7,372,006

	
05/13/2008

	
Low cost heating devices manufactured from conductive loaded resin-based materials

	
7,339,146

	
03/04/2008

	
Low cost microwave over components manufactured from conductively doped resin-based materials

	
7,317,420

	
01/08/2008

	
Low cost omni-directional antenna manufactured from conductive loaded resin-based materials

	
7,316,838

	
01/08/2008

	
Low cost electrically conductive carpeting manufactured from conductive loaded resin-based materials

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Patent Number

	
Approval Date

	
Title

	
7,273,135

	
09/25/2007

	
Low cost magnetic brakes and motion control devices manufactured from conductive loaded resin-based materials

	
7,268,637

	
09/11/2007

	
Low cost RF oscillator devices manufactured from conductive loaded resin-based materials

	
7,268,562

	
09/11/2007

	
Low cost detectible pipe and electric fencing manufactured from conductive loaded resin-based materials

	
7,268,479

	
09/11/2007

	
Low cost lighting circuits manufactured from conductive loaded resin-based materials

	
7,268,461

	
09/11/2007

	
Low cost electrical motor components manufactured from conductive loaded resin-based materials

	
7,230,572

	
06/12/2007

	
Low cost antenna devices comprising conductive loaded resin-based materials with conductive wrapping

	
7,222,727

	
05/29/2007

	
Low cost food processing belts and other conveyances manufactured from conductive loaded resin-based materials

	
7,164,388

	
01/16/2007

	
Low cost adjustable RF resonator devices manufactured from conductive loaded resin-based materials

	
7,136,008

	
11/14/2006

	
Low cost electromagnetic energy absorbers manufactured from conductive loaded resin-based materials

	
7,115,825

	
10/03/2006

	
Low cost key actuators and other switching device actuators manufactured from conductive loaded resin-based materials

	
7,102,077

	
09/05/2006

	
Low cost electromagnetic energy absorbing, shrinkable tubing manufactured from conductive loaded resin-based materials

	
7,084,826

	
08/01/2006

	
Low cost inductor devices manufactured from conductive loaded resin-based materials

	
7,079,086

	
07/18/2006

	
Low cost electromagnetic field absorbing devices manufactured from conductive loaded resin-based materials

	
7,027,304

	
04/11/2006

	
Low cost thermal management device or heat sink manufactured from conductive loaded resin-based materials

	
7,017,822

	
03/28/2006

	
Low cost RFID antenna manufactured from conductive loaded resin-based materials

	
7,006,050

	
02/28/2006

	
Low cost antennas manufactured from conductive loaded resin-based materials having a conducting wire center core

	
7,006,046

	
02/28/2006

	
Low cost electronic probe devices manufactured from conductive loaded resin-based materials

23

CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

	
Patent Number

	
Approval Date

	
Title

	
7,002,234

	
2006-02-21

	
Low cost capacitors manufactured from conductive loaded resin-based materials

	
6,947,012

	
09/20/2005

	
Low cost electrical cable connector housings and cable heads manufactured from conductive loaded resin-based materials

	
6,947,005

	
09/20/2005

	
Low cost antennas and electromagnetic (EMF) absorption in electronic circuit packages or transceivers using conductive loaded resin-based materials

	
6,940,468

	
09/06/2005

	
Transformers or inductors (“transductors”) and antennas manufactured from conductive loaded resin-based materials

	
6,873,298

	
03/29/2005

	
Plastenna flat panel antenna

	
6,870,505

	
03/22/2005

	
Multi-Segmented Planar Antenna with Built-in Ground Plane

	
6,870,516

	
03/22/2005

	
Low cost antennas using conductive plastics or conductive composites

	
6,741,221

	
05/25/2004

	
Low Cost Antennas Using Conductive Plastics or Conductive Composites

	
6,717,550

	
04/06/2004

	
Segmented Planar Antenna with Built-in Ground Plane

	
6,329,950

	
12/11/2001

	
Planar Antenna Comprising Two Joined Conducting Regions with Coax

	
6,320,548

	
11/20/2001

	
Dual Disk Active Antenna

 

 

24

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