Document:

ex10-8.htm

Exhibit 10.8

 

The symbol "****" denotes places where portions of this document have been omitted pursuant to a request for confidential treatment. Such materials have been filed separately with the Securities and Exchange Commission.

 

Manufacturing Rights Agreement

 

This Manufacturing Rights Agreement (this “Agreement”) is made as of December 30, 2012, by and between Telkoor Telecom Ltd., an Israeli company (“Telkoor”), and Digital Power Corporation, a California corporation (“DPC”).  For purposes of this Agreement, the “Parties” or “Party” shall mean Telkoor, on the one hand, and DPC, on the other hand.

 

WHEREAS, on June 16, 2011, Digital Power Limited, a wholly-owned subsidiary of DPC, acquired 1,136,666 shares of Telkoor, which is the Company's largest shareholder, for NIS 3.00 per share, representing 8.8 percent of the outstanding shares of Telkoor;

 

WHEREAS, as part of the investment in Telkoor, Telkoor and DPC agreed to update and extend their manufacturing agreement to grant DPC the right to directly order and purchase certain products of Telkoor from certain third party manufacturers of Telkoor and the right to market, sell and distribute such products in agreed upon markets and territories, subject to the payment by DPC of royalties to Telkoor; and

 

WHEREAS, in connection therewith the Parties wish to hereby enter into this Agreement pursuant to the terms and conditions hereunder.

 

NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

	
  

	
1.

	
Subject to the terms and conditions of this Agreement, Telkoor hereby grants DPC the non-exclusive right to directly place purchase orders for the purchase of the products listed on Schedule A attached hereto, as may be amended from time to time by mutual consent of the Parties (the “Products”) with the manufacturers (each, a “Manufacturer” and collectively, the “Manufacturers”), for the sole purpose of marketing, selling and distributing the Products for telecom, industrial, medical and military market segments and only in the territories listed on Schedule B attached hereto (the “Manufacturing Rights”).

	
  

	
2.

	
In consideration of the grant of the Manufacturing Rights, DPC shall pay Telkoor royalties in the amounts listed in Schedule A of the price paid by DPC for each Product purchased from a Manufacturer (the “Royalties”).  DPC shall pay the Royalties within thirty (30) business days of receipt of the relevant Product from the Manufacturer.

	
  

	
3.

	
DPC shall pay for all costs and expenses associated with obtaining the necessary regulatory certifications and approvals required for DPC to sell the Products in the territories listed on Schedule B attached hereto.  At Telkoor's request, DPC shall provide services at cost for Telkoor facilitate the receipt by Telkoor of the regulatory certifications and approvals required for Telkoor to sell the Products.

	
  

	
4.

	
This Agreement shall commence on the date hereof and shall remain in full force and effect for a period of five (5) years following the date hereof (the “Term”). Notwithstanding the aforesaid or any applicable law, either Party may terminate this Agreement, forthwith upon the occurrence of any of the following events: (i) any breach or default by the other Party of any of the provisions set forth herein, which is not cured by it within ninety (90) days after written notice thereof is given by the non defaulting Party; and (ii) the initiation of insolvency, bankruptcy, reorganization, dissolution, liquidation or similar proceedings by the other Party with respect to the other Party, or against the other Party (provided that such proceedings initiated against the other Party are not dismissed within thirty (30) days of the filing thereof) or any assignment for the benefit of its creditors or the appointment of a receiver, trustee or judicial manager for the other Party or over all or substantially all of its assets or properties or any other similar proceeding.

 

  

 

  

 

	
  

	
5.

	
DPC shall provide Telkoor or its legal successor with (i) any purchase order submitted by DPC to a Manufacturer (“Purchase Orders”), promptly after such Purchase Order has been submitted by DPC, and (ii) accurate quarterly reports, detailing the actual number of Products which were purchased during each calendar quarter, the price paid for such Products and any other material information, terms and conditions with respect thereto (each, a “Usage Report”). Usage Reports must be delivered to Telkoor or its legal successor no later than thirty (30) days after the last day of each calendar quarter. Within thirty (30) business days of a written request from Telkoor or its legal successor, but no more than once every calendar year, Telkoor or its legal successor shall have the right to audit or have audited said Usage Reports, and DPC shall have the obligation to make available any requested Usage Reports and relevant books and records, during normal business hours and at the principal offices of Customer, to confirm Customer’s undertakings under this Agreement. The quantities in each Usage Report are binding upon DPC.

	
  

	
6.

	
For a period of five (5) years following signing this agreement, Telkoor shall not and shall cause its subsidiaries not to, directly or indirectly, participate or engage, or assist any other person in engaging or preparing to engage the customers of DPC in the Territories in connection with the sale or distribution of any of the Products.  It is the Parties’ intention that these covenants be enforced to the greatest extent (but to no greater extent) in time, area, and degree of participation as is permitted by applicable legal requirements. It being the purpose of this Agreement to govern competition by Telkoor, these covenants shall be governed by and construed according to that legal requirement (from among those jurisdictions arguably applicable to this Agreement and those in which a breach of this Agreement is alleged to have occurred or to be threatened) which best gives them effect. If any such covenants or any part of such covenants is held invalid, void or unenforceable by any court of competent jurisdiction, such invalidity, voidness, or unenforceability shall in no way render invalid, void, or unenforceable any other part of them or any separate agreements not declared invalid, void or unenforceable; and this Agreement shall in such case be construed as if the invalid, void or unenforceable provisions were omitted.

	
  

	
7.

	
In no event shall Telkoor be liable for any liabilities, losses, claims, demands, obligations, judgments, causes of action, assessments, fines, damages, costs and expenses of DPC of any kind or nature that arise out of or in connection with this Agreement. Notwithstanding the aforesaid, during the Term, Telkoor shall be responsible for, and correct or repair, any defect in design in the Products, but shall not be responsible for, or be obligated to correct or repair, any defect in the manufacture of the Products.

	
  

	
8.

	
DPC acknowledges and agrees that “Confidential Information” means any materials, data, and/or information of any type whatsoever, in whatever form or media, whether or not marked as “confidential” and/or “proprietary,” that is disclosed to or becomes known by DPC, and which is not generally known to the public, or which could reasonably be expected to be valuable to Telkoor or its affiliates or a competitor of Telkoor or its affiliates are created, accessed, viewed, learned, obtained, disclosed to or become known by DPC pursuant to this Agreement.  DPC shall:  (a) hold such Confidential Information in strict confidence; (b) not disclose such Confidential Information to any third party except as expressly permitted by this Agreement; and (c) use such Confidential Information only as necessary for DPC’s performance of its obligations under this Agreement.

 

  

2

  

 

	
  

	
9.

	
DPC may not assign or delegate this Agreement, or any part thereof, to a third party by operation of law or otherwise without the prior written consent of Telkoor.

	
  

	
10.

	
No failure or delay on the part of either Party in the exercise of any power or right under the Agreement shall operate as a waiver thereof.  No single or partial exercise of any right or power under the Agreement shall operate as a waiver of such right or of any other right or power.  The waiver by either Party of a breach of any provision of the Agreement shall not operate or be construed as a waiver of any other or subsequent breach under the Agreement. No amendment or modification of or supplement to the terms of this Agreement or the schedules attached hereto shall be binding on either Party unless reduced to writing and signed by both Parties. This Agreement sets forth the entire, final and exclusive agreement between the parties as to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, between the parties.

	
  

	
11.

	
This Agreement shall be construed, interpreted and the rights of the Parties determined in accordance with the laws of the State of Israel(without reference to the choice of law provisions of Israeli law that would require the application of law of any other jurisdiction), except with respect to matters of law concerning the internal corporate affairs of any corporate entity which is a Party, and as to those matters the law of the jurisdiction under which the respective entity derives its powers shall govern.  In any action between the Parties, each of the Parties irrevocably consents to the jurisdiction and venue of the Tel Aviv-Yafo  courts located in the State of Israel.

 

[Signature page follows]

  

3

  

 

IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on its behalf by their respective officers thereunto duly authorized all as of the date first written above.

 

 

TELKOOR TELECOM LTD.

 

By: /s/ Ben-Zion Diamant

Name: Ben-Zion Diamant

Title: President

 

 

DIGITAL POWER CORPORATION

 

By: /s/ Amos Kohn

Name: Amos Kohn

Title: President & CEO

 

  

4

  

 

Schedule A

 

Manufacturing Rights - Product List and Royalty

	
Family

	
Telkoor P/N

	
P/N

	
Royalty 

Rate %

	
CPCI 200W

	
900-3002-xx

	
CPCI-AC-3U-200

	
[****]

	
CPCI 200W

	
900-3003-xx

	
CPCI-DC-3U-200/48

	
[****]

	
CPCI 200WDC

	
900-3011-xx

	
CPCI-DC-3U-200/24

	
[****]

	
CPCI 300W

	
900-4002-xx

	
CPCI-AC-3U-300/48

	
[****]

	
CPCI 300W

	
900-4003-xx

	
CPCI-DC-3U-300/48

	
[****]

	
CPCI 300WDC

	
900-4011-xx

	
CPCI-DC-3U-300/24

	
[****]

	
CPCI 400W

	
900-6002-xx

	
CPCI-AC-6U-400

	
[****]

	
CPCI 400WDC

	
900-6003-xx

	
CPCI-DC-6U-400

	
[****]

	
CPCI 500W

	
900-7002-xx

	
CPCI-AC-6U-500

	
[****]

	
CPCI 500W

	
900-6212-xx

	
CPCI-AC-6U-500-38

	
[****]

	
CPCI 500W

	
900-7038-xx

	
CPCI-AC-6U-500-38

	
[****]

	
EF200W

	
900-0431-0000

	
eF175-131

	
[****]

	
EF200W

	
900-0215-0000

	
eF175-215

	
[****]

	
EF200W

	
900-0215-00

	
eF175-215

	
[****]

	
EF200W

	
900-0225-0000

	
eF200-225

	
[****]

	
EF200W

	
900-1436-20

	
eFA175-112

	
[****]

	
EF200W

	
900-1437-0000

	
eFA175-112

	
[****]

	
EF350W

	
900-3436-0000

	
DPO306-112

	
[****]

	
EF350W

	
900-3456-0000

	
DPO306-124

	
[****]

	
EF350W

	
900-3463-0000

	
DPOS306-112

	
[****]

	
EF350W

	
900-3054-0000

	
eF306-154

	
[****]

	
EF350W

	
900-3151-0000

	
eFO306-105

	
[****]

	
EF350W

	
900-3028-0000

	
eFO306-128

	
[****]

	
EF350W

	
900-3046-0000

	
eFO306-148

	
[****]

	
EF350W

	
900-3146-0000

	
eFOA306-148

	
[****]

	
EF350W

	
900-3046-54

	
eFO306-148-54

	
[****]

	
EF350W

	
900-3248-0000

	
eFO306-248

	
[****]

	
EF350W

	
900-3036-0000

	
eFO306-112

	
[****]

	
EF350W

	
900-3056-0000

	
eFO306-148

	
[****]

	
EF350W

	
900--0000

	
CPO306-112

	
[****]

	
EF350W

	
900-3356-0000

	
eFO306-148

	
[****]

	
EF300W

	
900-4236-0000

	
eFOS306-112

	
[****]

	
EF400W

	
900-4036-0000

	
eF400-112

	
[****]

	
EF400W

	
900-4056-0000

	
eF400-124

	
[****]

	
EF400W

	
900-4046-0000

	
eF400-148

	
[****]

	
EF400W

	
900-4136-0000

	
eFO400-112

	
[****]

	
EF500W

	
900-5124-0000

	
eFO500-124

	
[****]

	
Front-End

	
900-1548-0000

	
1500W

	
[****]

	
Front-End

	
900-1648-0000

	
1600W

	
[****]

	
Front-End

	
900-2180-0000

	
800W

	
[****]

	
Front-End

	
900-1200-0000

	
Chassis 1500-1600W

	
[****]

	
Front-End

	
900-2150-0000

	
Chassis 600-800W

	
[****]

 

  

5

  

 

Schedule B

 

Territories

 

North America and South America

 

6standardofficelease.htm

 

Exhibit 10.9

FIRST AMENDMENT TO STANDARD OFFICE LEASE

 

THIS FIRST AMENDMENT TO STANDARD OFFICE LEASE (this “Amendment”) is dated as of August 23, 2012, by and between DANARI BROADWAY, LLC, a Delaware limited liability company (“Landlord”) and GLOBAL CLEAN ENERGY HOLDINGS, INC., a Delaware corporation (“Tenant”) with reference to the following recitals:

 

RECITALS

 

Landlord and Tenant are parties to that certain Office Lease dated May 24, 2010 (the “Lease”) whereby Tenant leases certain office space located and addressed at 100 West Broadway, Long Beach, California (the “Building”).

 

By this FIRST Amendment, Landlord and Tenant desire to amend the Lease on the terms and conditions of this Amendment.  Capitalized terms not otherwise defined herein will have the meanings assigned to them in the Lease.

 

AMENDMENT

 

In consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Tenant and Landlord agree as follows:

 

The Premises.    Landlord and Tenant hereby acknowledge that Tenant currently leases from Landlord that certain space in the building containing 2,000 rentable square feet located on the sixth (6th) floor of the Building and known as Suite 650 (the “Premises”)

 

Extended Term.  The Term of this lease shall be extended for a period of twelve (12) months, commencing September 1, 2012 and expiring August 31, 2013 (“Extended Term”).

 

 Monthly Basic Rental.  The monthly “Basic Rental” due and payable by Tenant during the Extended Term, is as follows:

 

	
Months During Extended Term

	
Monthly Rate ($/RSF/month)

	
Monthly Basic Rental

	
September 1, 2012 – August 31, 2013

	
$1.75

	
$3,500.00

 

Expansion Lease: If Tenant and Landlord agree to execute a lease that expands the length of the term of the current space or results in an expansion or a relocation that includes an increase of rentable square footage ("Increased Term") prior to the expiration of the Extended Term, this Lease shall be terminated and replaced with the ("Increased Term or Expansion Lease").

 

Condition of Premises.   Tenant hereby agrees to accept the Premises in its “as-is” condition and Tenant hereby acknowledges that Landlord shall not be obligated to provide or pay for any work or services related to the improvement of the Premises.

 

 

  

  

  

 

 

Representations and Warranties by Tenants.  Tenant represents and warrants to Landlord the truth and accuracy of the following matters as of the date of this Amendment: (a) Tenant has not transferred, assigned, or sublet any portion of the Premises nor entered into any license or concession agreements with respect to the Premises; (b) Tenant has not pre-paid or overpaid any rent or other charges to Landlord; (c) To Tenant’s knowledge, Landlord is not in default under the terms of the Lease, and Tenant has no claims, defenses or offsets under the Lease that would limit or preclude Landlord’s enforcement of the Lease; and (d) Landlord and any third-party mortgagee, prospective mortgagee, or prospective purchaser may rely on the foregoing representations and warranties in connection with any loan or sale of the property of which the Premises are a part.

 

Brokers.  Each party represents and warrants to the other that no other broker, agent or finder, other than Lee & Associates (“Brokers”), negotiated or was instrumental in negotiating or consummating this First Amendment. Each party further agrees to defend, indemnify, and hold harmless the other party from and against any claim for commission or finder’s fee by any entity, other than the Broker, who claims or alleges that they were retained or engaged by such party in connection with this First Amendment.

 

Conflicts.  If any conflicts exist between the terms of the Lease and the terms of this Amendment, the terms of this Amendment will supersede the terms in the Lease as necessary to resolve the conflict.

 

Miscellaneous.  The Lease is in full force and effect and has not been modified, supplemented or amended in any way except as provided in the Lease and this Amendment.  The undersigned signatories represent that they have full and complete authority to bind their respective parties to this Amendment and that no other consent is necessary or required in order for the signatories to execute this Amendment on behalf of their respective parties.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original but all of which, taken together shall constitute one in the same Amendment and may be delivered by facsimile.

 

[SIGNATURE PAGE FOLLOWS]

  

  

  

 

The undersigned parties have executed this Amendment as of the above date.

 

	
LANDLORD:

	
 TENANT:

	
DANARI BROADWAY, LLC,

a Delaware limited liability company

 

By:     ARI Dancub II, LP,

a Delaware limited partnership

Its Sole Member

 

By:     Adler Realty Investments, Inc.

a California corporation

its General Partner

 

 

By:  /s/ Tae K. Nam                                                               

              Tae K. Nam

                        Authorized Signatory

	
GLOBAL CLEAN ENERGY HOLDINGS, INC.

a Delaware corporation

 

By:   /s/ Richard Palmer                                                                           

Print:   Richard Palmer

Its:  President/CEO

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