Document:

Exhibit 10.1

 

[Redacted Copy]

 

“***” indicates portions of the agreement that have been omitted pursuant to a confidential treatment request and have been filed with the Securities and Exchange Commission separately.

 

	

    	
BASIC
   AGREEMENT
   ON PURCHASE
   AND SALE
    

 

 

THIS AGREEMENT made on 1st Day of Oct, 2009 (“Effective Date”) by and between, Samsung Mobile Display, Co., Ltd, a corporation duly organized and existing under the laws of the Republic of Korea, , with a place of business at 24 San Nongseo-Dong, Kiheung City, Kyungki-Do, Korea (hereinafter called “Buyer”), and

NOVALED AG, a corporation duly organized and existing under the laws of Germany having its place of business at Tatzberg 47, D-01307 Dresden (hereinafter called “Seller”)

 

WITNESSETH

 

WHEREAS, Buyer desires to purchase, and Seller is willing to sell to Buyer, the products or services which are set forth in Article 2 hereof (hereinafter called the “Products”) upon the terms and conditions which are hereinafter set forth.

 

NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree as follows;

 

ARTICLE 1.                        DEFINITIONS

 

In this Agreement, unless the context otherwise requires:

 

1.1.                        “Incoming Inspection” shall mean the test set out in the Purchase Order or other related document attached hereto to establish whether the Product meet the test criteria pertaining to them in the relevant Purchase Order.

 

1.2.                        “Confidential Information” shall mean any and all information owned, created, or possessed by the disclosing party that the disclosing party desires to protect as confidential against unrestricted disclosure or improper competitive use, including, but not limited to, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints, tracings, diagrams, models, samples, flow charts, data, computer programs and documentation, disks, diskettes, tapes, marketing plans, customer names, lists, or proposals, patent applications, business information, strategic and development plans, employee lists, business manuals, technical or financial information, or sketches, whether conveyed as communications or data in oral, written, graphic, or electromagnetic form or otherwise, and all other information which may be disclosed by the disclosing party or to which the receiving party may be provided access by the disclosing party or others in accordance with this Agreement, which is not generally available to the public and all Confidential Information shall be clearly identified as confidential.

 

1.3.                        “Delivery” shall mean delivery of the Product in the Purchase Order.

 

1.4.                        “Defect” shall mean any reproducible defects in any Products which cause it not to function in conformance with the Specifications.

 

1.5.                        “Products” shall mean organic materials specified in the Purchase Order.

 

1.6.                        “Purchase Order” shall mean Buyer’s document setting out the Products, Price and any further detail concerning delivery to Buyer.

 

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1.7.                        “Quality Problem”  shall mean any negligence of Seller that causes the defect in the Products, the line stoppage in Buyer’s manufacturing process, claims from Buyer’s end customers.

 

1.8.                        “Service” shall mean the work that Seller performs for Buyer as described in the Purchase Order.

 

1.9.                        “Specifications”  shall mean the engineering, operational and/or functional descriptions, details and requirements for the Product, as set forth in the Purchase Order as the same may be modified as provided herein.

 

ARTICLE 2.                        PRODUCTS

 

2.1.                        Seller shall provide the product or service (“Product”) to Buyer as specified in the relevant Purchase Order as set forth in Appendix A attached hereto and made a part hereof.

 

2.2.                        Prior to the start of actual transaction, Buyer and Seller agree to discuss and reach an agreement on the name of the Products, parts number, specifications, unit price, delivery lead time, order planning, minimum order quantity, minimum delivery quantity, place of delivery, etc. in accordance with the Purchase Order.

 

2.3.                        The terms and conditions of the Purchase Order shall control to the extent of any conflict between the terms and conditions herein and those in the Purchase Order.

 

2.4.                        Unless otherwise the Parties separately agree in writing, the Parties agree and bind the basic purchase conditions for *** as described in Appendix B.

 

ARTICLE 3.                        QUALITY ASSURANCE

 

3.1.                        Engineering or Process Changes

 

3.1.1.                  Seller shall not change its production conditions during the *** after issuance of the Purchase Order. If there is a special reason for changing, Seller shall indicate to and obtain approval from Buyer regarding the major change which may include all process changes, sourcing changes, design changes, component stepping changes, geographical relocation of manufacturing site, drawing changes or process step discontinuance that affect the agreed specifications, the mechanical form or fit, the packaging, the environmental compatibility, the life, the reliability or the quality of Products.

 

3.1.2.                  When Seller has made any changes without prior approval from Buyer and it causes any failure in Buyer’s production or marketing process, Buyer shall be entitled to claim reimbursement, replacement or screening to Seller. The specific amount of compensation shall be determined by mutual negotiation between Buyer and Seller.

 

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3.2.                        Manufacturing Process Control

 

3.2.1.                  Seller shall perform an analysis on all failures that occurred during the manufacturing process for the Products supplied to Buyer and implement the necessary corrective action. Seller shall document the date, month, line, and products used during the corrective activity.

 

3.2.2.                  Seller shall provide to Buyer a root cause and corresponding corrective action plan for each failure reported by Buyer or customers within *** after Seller received the failure report.

 

3.3.                        Reliability Test

 

3.3.1.                  Seller shall perform a periodic reliability test on the production of the Product according to the Buyer’s pre-approved test plan by using qualified employees and testing equipments. Seller shall submit the result to Buyer for review.

 

3.3.2.                  In case Seller is unable to implement the reliability test by itself, Seller may engage Buyer’s facility or any other authorized third party organizations to perform the test.

 

3.4.                        Liability for Quality Problems

 

3.4.1.                    Seller shall bear all responsibilities for any quality problems occurring to Buyer’s *** that is contributable to the Product and Seller’s negligence and shall compensate or reimburse Buyer for the corresponding loss. Both parties shall meet to discuss in good faith for the amount of compensation or reimbursement, but ***.

 

3.4.2.                  The reimbursement, if any, shall be calculated on a monthly/quarterly basis and Seller shall pay the amount to Buyer within ten (10) days from the end of the respective month/quarter.

 

3.5.                        Supply & Compensation for Service Parts

 

3.5.1.                  Seller shall supply all the service parts required for repairing the Products during an obligation period of *** from the delivery of the Product.

 

3.5.2.                  Seller shall compensate any loss sustained by Buyer due to delay in or unavailability of the supply of service parts. Both parties shall meet to discuss in good faith for the amount of compensation, but ***.

 

ARTICLE 4.                        PURCHASE PRICE

 

4.1.                        The price of the Products shall be agreed upon between the Parties.

 

4.2.                        After the price of the Products is determined by the parties, in the event that there occurs any drastic change in the economic conditions such as either sudden rise or falling of product price in fair market, Buyer and Seller agree to make a good faith discussion on the revision of the price of the Products.

 

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ARTICLE 5.                        DELIVERY

 

5.1.                        The Seller shall deliver the Product in accordance with the Delivery schedule in the Purchase Order. In the event that aforesaid Delivery schedule is changed, the Seller shall immediately notify the changed schedule to the Buyer. The Seller shall not change the Delivery date without a written consent by the Buyer.

 

5.2.                        The Seller shall give a confirmation to the Buyer of the Delivery schedule *** before the actual delivery date.

 

5.3.                        All Products shall be delivered by the method and procedure and to the place designated under the Purchase Order not later than the Delivery date.

 

5.4.                        The Seller shall warrant a continuous supply of the Product manufactured by the Seller during the term of this Agreement stipulated under Section 13.1 hereto.

 

ARTICLE 6.                        INCOMING INSPECTION

 

6.1.                        Seller shall carry out the inspection of the Products in accordance with the rule and procedure which shall be agreed upon by the parties. Seller shall pass to Buyer the standard inspection report upon every Delivery of Products. Upon Delivery, Buyer shall inspect the quantity of the shipment of the Products and notify Seller of any shortage in the quantity of the Products within *** after the date of arrival of the shipment at the port of the destination.

 

6.2.                        In addition to the initial inspection, Buyer, with the reasonable assistance of Seller, will carry out the Incoming Inspection on the Products to satisfy itself that the Products are compliance with the acceptance criteria pertaining to them. Buyer shall, within *** following the delivery of same:(i) accept the Product and so inform Seller in writing; or (ii) if the Product contains material Defects, reject the Product and provide Seller with a written statement of such material Defects.

 

6.3.                        Seller, at its expense, will promptly correct the material Defects set forth in the statement of material Defects with respect to any Products and redeliver the Product to Buyer within such reasonable period of time as may be agreed upon by Buyer with regard to all circumstances affecting the Product. Buyer shall, within *** after such redelivery, accept or reject the redelivery in accordance with the procedure set forth in Section 6.2, which procedure shall be repeated until the Products are accepted or Buyer invokes the provisions of Section 6.4 hereof

 

6.4.                        Should any Product fail to be accepted after the final Delivery of that Product pursuant to Section 6.2 then the parties shall promptly meet to resolve the problem. Any subsequent rejection of the same Product shall be deemed a breach of this Agreement by Seller, and Buyer, at its option, may elect to terminate this Agreement pursuant to Section 13.2 hereof, or may elect to accept further resubmission of the applicable Product.

 

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ARTICLE 7.                        PAYMENT

 

Seller shall invoice Buyer for the price of the Products provided to Buyer (as set out in the Purchase Order) and any related additional charges after the Acceptance and Buyer shall pay Seller the invoiced sum within *** of the receipt of the invoice.

 

ARTICLE 8.                        WARRANTY

 

8.1.                        Seller makes the following ongoing representations and warranties:

 

(i)                      it has the right to enter into this Agreement and its performance of this Agreement will not violate the terms of any contract, obligation, law, regulation or ordinance to which it is or becomes subject;

 

(ii)                   no claim, lien, or action exists or is threatened against Seller that would interfere with Buyer’s use or sale of the Products;

 

(iii)                Products are free from defects in design (except for written designs provided by Buyer unless such designs are based entirely on Seller’s specifications), material and workmanship and will conform to the warranties, specifications and requirements in this Agreement for the time period from the date of delivery as specified in the relevant Purchase Order;

 

(iv)               Products are safe for any use consistent with and will comply with the warranties, specifications and requirements in this Agreement;

 

(v)                  Products are new and do not contain used or reconditioned parts;

 

(vi)               Products do not, to the best knowledge of Seller, infringe any intellectual property right of a third party; and

 

(vii)            all authors have agreed not to assert their moral rights (personal rights associated with authorship of a work under applicable law) in the Products, to the extent permitted by law.

 

8.2.                        For *** after the Delivery, if Products do not comply with the warranties in this Agreement, Seller will repair or replace Products, or credit or refund the Price of Products, such remedy at Buyer’s discretion. If Seller fails to repair or replace Products in a timely manner, Buyer may do so and Seller will reimburse Buyer for actual and reasonable expenses. Buyer may return Products which do not conform to the warranties in this Agreement from any Buyer location to the nearest authorized Seller location at cost of Seller and Seller will, at cost of Seller, return any repaired or replaced Products in a timely manner.

 

8.3.                        Seller will, at Buyer’s discretion, repair or replace, or credit or refund Products which have the same or similar defect at a rate as specified heretofore (“Epidemic Defect Rate”), or where a safety defect is found. Supplier will commence such performance within *** of Buyer’s notice to Supplier of an Epidemic Defect Rate. Supplier will reimburse Buyer for all actual and reasonable expenses incurred by Buyer for such

 

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repair and replacement of Products, including expenses associated with problem diagnosis, field and finished goods inventory repair or replacement.

 

8.4.                        Supplier also hereby warrants and represents (i) Supplier complies with all relevant international regulations concerning the substances with environmental impacts; (ii) Supplier complies with the Buyer’s Standards for Control of Substances with Environmental Impacts within Products (“Samsung Environmental Standards, 0QA-2049”) in controlling environmentally hazardous substances; (iii) the documents and data sheets on the substances with environmental impacts contained in Supplier’s Products including, without limitation, products, parts, components, raw materials and packaging materials, are accurate and truthful. Supplier agrees to defend, hold harmless, and indemnify Buyer from any claim arising out of or related to Supplier’s failure to comply with the above warranties and representations including all reasonable counsel fees and legal costs, judgments, orders, awards, and/or any damages arising out of and/or related to any such claim or claims. Both parties shall meet to discuss in good faith regarding the amount of indemnification under this Article 8.4., but ***.

 

ARTICLE 9.                        PRODUCT LIABILITY

 

Seller agrees to defend, indemnify and hold Buyer harmless against any liability, loss, expense, damage or cost arising out of personal injury or death or property damage alleged to have been caused by any defect in the Products or part thereof, provided, however, that the foregoing indemnity shall be voided and shall not be applied in any instances where (i) Buyer fails to carry out proper handling, operating, installation, testing, service and checkout of the Products and/or to follow Seller’s reasonable instructions or advice with respect to any of these matters, (ii) Buyer utilizes any attachments or interface devices or makes any modifications to the Products which are not approved in writing by Seller, (iii) Buyer incorporates any parts not supplied by Seller into the Products and/or combines any equipment not supplied by Seller with Products, (iv) the alleged defect arises out of Seller’s compliance with any written request, instruction, design change, drawing or specification (including but not limited to instruction manual, installation manual, service manual and warranty card prepared by Buyer) specifically furnished or imposed by Buyer upon Seller, or (v) such liability, loss, expense, damage or cost is found to arise from the act by Buyer. Buyer agrees to defend, indemnify and hold Seller harmless against any liability, loss, expense, damage or cost arising out of personal injury or death or property damage alleged or found to have been caused by any of the instances (i), (ii), (iii), (iv) and/or (v) specified in the above.

 

ARTICLE 10.                 INTELLECTUAL PROPERTY RIGHT

 

INTENTIONALLY BLANK (WILL BE DEFINED IN A SEPARATE LICENSE AGREEMENT)

 

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ARTICLE 11.                 INDEMNIFICATION

 

11.1.                 Seller agrees that it shall indemnify and hold buyer harmless from and against all claims, losses, liabilities and expenses (including reasonable attorney’s fees) associated with or based upon third party claims that arise out of (i) any failure by seller to comply with any of the terms of this agreement; or (ii) the furnishing by seller of any seller products or services; or (iii) any representations or warranties made by seller; or (iv) any infringement of the intellectual proprietary rights, excluding patents, of any third party arising from any material provided by seller other than infringement arising from any material or service provided by buyer hereunder, or that is the result of modifications, alterations or enhancements of the materials provided by seller that are made by buyer or by a third party at buyer’s direction, or (v) infringement of any patent or patent application known to seller as of the effective date of this agreement arising from any material provided by seller other than those arising from any material or service provided by buyer hereunder, or that is the result of modifications, alterations or enhancements of the materials provided by seller that are made by buyer or by a third party at buyer’s direction.

 

11.2.                 Seller shall assume the defense of any action or suit based on any such claim of infringement brought against Buyer specifically relating to the Products, by counsel retained by Seller and shall pay any damages assessed against or otherwise payable to Buyer as a result of the final disposition of any such action or suit, provided that Buyer shall promptly notify Seller of the commencement of any such action or suit, or threat thereof, and furnish to Seller all documents relating thereto, and further provided that Seller is afforded the opportunity, in its sole and absolute discretion, to determine the manner in which such action or suit shall be handled or otherwise disposed of.

 

11.3.                 In the adverse judgment, Seller shall use its best efforts to obtain a license for Products for Buyer or to provide Products which do not infringe such intellectual property right, with cooperation from Buyer. Buyer shall give Seller the cooperation it reasonably requires, at Seller’s expense for out-of-pocket expenses incurred by Buyer and paid to third parties, in connection with any such action or suit.

 

ARTICLE 12.                 CONFIDENTIALITY

 

12.1.                 Any confidential information shall be disclosed by the disclosing party to the receiving party in tangible form conspicuously labeled by the disclosing party as “Confidential” or “Proprietary”. If the confidential information is disclosed orally or through demonstration, it shall be specifically designated as confidential information at the time of the disclosure and confirmed in writing to be received by the receiving party within thirty (30) days after the oral disclosure or demonstration.

 

12.2.                 The receiving party agrees to keep the confidential information disclosed to it by the disclosing party strictly confidential and will not, without the prior written consent of the other party, disclose, in whole or in part, and will not use, directly or indirectly, for any purpose other than performing obligations under this Agreement.

 

12.3.                 The receiving party shall not, if the confidential information is disclosed in the form of chemical substances such as products or samples, analyze or have analyzed chemical

 

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molecular structure and composition of the Confidential Information to determine its composition or formulation or permit or allow any person or entity to do so; make any alteration to the composition of the Confidential Information or allow any person or entity to do so.

 

12.4.                    The receiving party shall use the same degree of care in keeping the confidential information confidential as it uses for its own confidential information of a similar nature.

 

12.5.                    The obligation under this Article shall not extend to the confidential information that; (a) was in the public domain at the time it was disclosed or becomes a part of the public domain through no fault of the receiving party, (b) was known to the receiving party at the time of its disclosure or becomes known to the receiving party without breach of this confidential obligation, (c) is independently developed by the receiving party, (d) is disclosed by the disclosing party to a third party without restrictions on such third party’s rights to disclose or use the same, (e) is approved for release upon the disclosing party’s prior written consent, (f) is disclosed pursuant to judicial order, requirement of a governmental agency or by operation of law, or (g) is disclosed by the disclosing party to the receiving party after the notification by the receiving party to the disclosing party that it will not accept any further confidential information in confidence.

 

12.6.                    The confidential obligation shall be in effect during the terms hereof and for three (3) years thereafter, and after the lapse of such period all of the confidential obligations shall cease and the receiving party shall not be under any obligation whatsoever to keep the confidential information confidential.

 

12.7.                    No license, express or implied, in the confidential information is granted to the receiving party other than to use the confidential information in the manner and to the extent authorized by this Agreement.

 

ARTICLE 13.                      TERM AND TERMINATION

 

13.1.                    This Agreement shall be effective for five (5) years from the Effective Date and shall automatically renew for successive one (1) year terms unless terminated earlier by either party in writing three (3) months prior to the expiry date of the original term or any of its anniversary date.

 

13.2.                    This Agreement (and any Purchase Order hereunder) may be terminated by either party upon written notice to the other (i) in the event of a breach by the other party of any terms or conditions of this Agreement and /or any Purchase Order hereunder and the failure to cure such breach within sixty (60) days after the mailing of written notice thereof, or (ii) at any time upon or after the filing by the other party of a petition in bankruptcy or insolvency, or upon or after any adjudication that the other party is insolvent, or upon or after the filing by the other party of any petition or answer seeking reorganization, readjustment or arrangement of the business of the other party under any Jaw relating to bankruptcy or insolvency, or upon or after the appointment of a receiver of all or substantially all of the property of the other party, or upon or after the making by the other party of any assignment or attempted assignment for the benefit of

 

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creditors, or upon or after the institution of any proceedings for the liquidation or winding up of the other party’s business or for the termination of its corporate charter.

 

13.3.                    Except as otherwise provided herein, the termination or expiration of this Agreement shall not affect or impair the rights and obligations of either party under any purchase order regarding the Products in existence prior to such termination or expiration, nor relieve any party of any obligation or liability accrued hereunder prior to such termination or expiration or affect or impair the rights of either party arising under this Agreement prior to such termination or expiration.

 

ARTICLE 14.                      FORCE MAJEURE

 

14.1.                    Non-performance of either party will be excused to the extent that performance is rendered impossible by fire, flood, earthquake, government acts or orders or restrictions, failure of supplier, or any other reason where failure to perform is beyond the reasonable control of and not caused by the gross negligence or willful misconduct of the non-performing party.

 

14.2.                    If the performance of either party is delayed due to any of the above causes or events, the time for performance by such party shall be extended by the period of any such delay.

 

ARTICLE 15.                      GENERAL TERMS AND CONDITIONS

 

15.1.                    No Assignment

 

Neither this Agreement, nor any of the obligations or liabilities of Seller hereunder, may be assigned, transferred or conveyed by Seller, by operation of law or otherwise, except upon the prior written consent of Buyer. Neither this Agreement nor any obligations of Seller hereunder shall inure to the benefit of any trustee in bankruptcy, receiver, creditor, trustee of, or successor to, the business or property of Seller, whether by operation of law or otherwise, In the event of an assignment of the Agreement consented to as provided hereunder, Seller shall remain obligated and liable to Buyer for the full and complete performance of this Agreement by the assignee.

 

15.2.                    Non-waiver

 

No waiver of any provision, default or breach of this Agreement by any of the parties hereto shall constitute a continuing waiver or a waiver of any subsequent breach or default, whether or not similar, unless expressly stated in writing signed by the waiving party.

 

15.3.                    Severability

 

The invalidity or unenforceability of any provision of this Agreement pursuant to any applicable law shall not affect the validity or enforceability of the remaining provisions hereof, but this Agreement shall be construed as if not containing the provision held invalid or unenforceable in the jurisdiction in which so held, unless, in the reasonable

 

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opinion of either party hereto, such invalid or unenforceable provisions comprise an integral part of, or are otherwise inseparable from the remainder of, this Agreement, in which case this Agreement, in such jurisdiction, shall immediately terminate and be of no further force and effect.

 

15.4.                    Headings

 

The article headings used herein do not form a part of this Agreement, but are for convenience only and shall not limit or be deemed or construed in any way to affect or limit the meaning of the language of the paragraphs herein contained.

 

15.5.                    Notices

 

All notices, requests, demands, waivers and other communications required or permitted to be given under the Agreement shall be in writing including electronic mails and shall be deemed to have been duly given if delivered personally, via overnight courier, by confirmed facsimile transmission or mailed, certified or registered mail, postage prepaid, return receipt requested. Such notice will be deemed to have been given as of the date it was delivered, or three (3) days after it was mailed or sent, whichever is earlier to the address set forth on the signature page hereto.

 

15.6.                    Governing Law

 

This Agreement and all purchase orders placed hereunder shall be governed by, and construed and enforced in accordance with the laws of the Republic of Korea.

 

15.7.                    Dispute Resolution

 

Any dispute, controversy and/or difference which may arise between Seller and Buyer out of or in relation to or in connection with this Agreement, or the breach hereof, which cannot be settled by mutual accord without undue delay, shall be settled by arbitration in Seoul, Korea in accordance with the rules of procedure of The Korean Commercial Arbitration Association. The award thereof shall be final and binding upon the parties hereto.

 

15.8.                    Entire Agreement

 

This Agreement shall be the final, complete and exclusive statement of the terms of this Agreement between Seller and Buyer. No addition to, deletion from or modification of any of the provisions of this Agreement shall be binding upon the parties unless made in writing and signed by a duly authorized representative of both parties. Any such additions, deletions or modifications shall refer specifically to this Agreement and shall also recite that they are executed pursuant to this Article. In the event of a conflict or inconsistency between anything contained in this Agreement and a Purchase Order (including any attachment thereto), the Purchase Order shall take precedence over the specific conflict or inconsistent provisions in this Agreement.

 

15.9.                    Electronic Data Interchange

 

Except any legal or confidential documents that must be delivered by the conventional delivery method described under Clause 15.5 above, the Parties hereby agree to use Electronic Data Interchange (“EDI”) method when documents for business transactions

 

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between both parties are exchanged. All data exchanged in electronic commerce shall be acknowledged by both parties as official documents. Both parties shall not be exempt from an obligation to fulfill a contracted deal, and shall not deny electronically transmitted data as evidence, on the ground that original copies were not provided. Under no circumstances should information obtained in the course of electronic commerce be arbitrarily provided to a third party, for free or not, without Buyer’s prior consent.

 

15.10.     Number and Gender

 

Any reference in this Agreement to the singular includes the plural where appropriate, and any reference in this Agreement to the masculine gender includes the feminine and neuter genders where appropriate.

 

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound here by, have caused this Agreement to be executed by their respective authorized representatives and each party shall have one (1) copy of this Agreement.

 

 

	
Samsung   Mobile Display Co., Ltd. 
    	
 
    	
NOVALED   AG 
    
	
 
    	
 
    	
 
    
	
By:

Name :

Title :

Date :
    	

    	
 
    	
By:   
    	
/s/   Gildas Sorin 
    
	
 
    	
Name :   
    	
Gildas   Sorin 
    
	
 
    	
Title :   
    	
CEO   
    
	
 
    	
Date :   
    	
8/30/2010
    

 

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Appendix A

 

Please refer to next page

 

12

 

	

    	
Purchase Order
    	
 
    

 

Samsung Semiconductor Europe GmbH

 

******* ************

****** ********************

 

	
NOVALED   AG 
    	
Order   Number : 
    
	
TATZBERG   49 DRESDEN
    	
Date   :
    
	
 
    	
 
    
	
01307   
    	
Germany   
    	
Contact   Person : 
    	
***   
    
	
ATTN   : 
    	
***   
    	
Tel.   No. : 
    	
***   
    
	
TEL   : 
    	
***   
    	
Fax.   No. : 
    	
***   
    
	
FAX   : 
    	
***
    	
E-Mail   : 
    	
***
    
	
 
    	
 
    
	
Please   Delivery to Forwarder : 

******
    	
Shipping   mark : 
   C/PO, 
   SAMSUNG MOBILE DISPLAY, CO., LTD. 
   SAN#24 NOMGSEO-DONG, KJHEUNG-GU 
   YONSIN-CITY
    
	
 
    	
 
    
	
Packing   :  
    	
Export   Standard Packing
    	
Destination   : 
    	
South   Korea 
    
	
Term   of Delivery : 
    	
***   
    	
Currency   :  
    	
USD
    
	
Term   of Payment : 
    	
***   
    	
VAT   No. : 
    	
DE113876072
    
						

 

Quotation No :

 

	
Item 
    	
 
    	
Material
   Vendor Mat. No.
    	
 
    	
Unit Price
    	
 
    	
Quantity
    	
 
    	
Unit
   Delivery date
    	
 
    	
Desc./Spec
    	
 
    	
Amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
00010
    	
 
    	
***
    	
 
    	
 
    	
 
    	
 
    	
 
    	
G
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
***
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
***
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Amount 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
USD
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

This PO follows SAMSUNG’s general terms and conditions.

 

 

	
 
    	
 
    	
 
    
	
NOVALED   AG
    	
 
    	
Samsung   Semiconductor Europe GmbH 
    
	
 
    	
 
    	
Sun-Young   Choi
    
	
 
    	
 
    	
Head   of Purchasing 
    
	
 
    	
 
    	
Date
    

 

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Appendix B

 

SMD and Novaled hereby agree the following purchase conditions for *** in 2010 and will negotiate the purchase conditions in good faith on the basis of the conditions in future:

 

·                                          a fixed and non-negotiable material price for *** in 2010 is US$***; 
 (Expected quantity in 2010: ***)

 

·                                          the basic starting price for *** in *** is US$***, which means the price for *** will be negotiated in good faith and the price in ***;

 

·                                          SMD basically agrees to have the intention to use more Novaled materials in future; and

 

·                                          SMD and Novaled agree to have closer cooperation in the technical field.Exhibit 10.2

 

[Redacted Copy]

 

“***” indicates portions of the agreement that have been omitted pursuant to a confidential treatment request and have been filed with the Securities and Exchange Commission separately.

 

MASTER PURCHASE AGREEMENT

 

by and between

 

Novaled AG 
 Tatzberg 49
 01307 Dresden
 Germany

 

and

 

LG Display Co., Ltd.
 LG U+ building, Hangangno 3-ga, Yongsan-gu, Seoul, 140-716 Korea

 

 

MASTER PURCHASE AGREEMENT

 

This Master Purchase Agreement (this Agreement ) is effective this 24th day of October, 2011  (Effective Date ), and entered into by and between,

 

LG Display Co., Ltd., having its principal place of business at LG U+ building, Hangangno 3-ga, Yongsan-gu, Seoul, 140-716Korea (“LGD”);

 

and

 

Novaled AG, having its principal place of business at Tatzberg 49 01307 Dresden Germany (herein after referred to as SELLER).

 

(Each of the SELLER and BUYER (as defined below) shall individually be referred to as a Party and collectively as the Parties)

 

W I T N E S S E T H:

 

WHEREAS, LGD is in the business of manufacturing, marketing and selling the OLED products;

 

WHEREAS, SELLER is in the business of manufacturing, marketing and selling the Material (as defined below) for OLED to be used in the OLED products ; and

 

WHEREAS, BUYER and SELLER desire to set forth the terms and conditions relating to the purchase and sale of the Material in this Agreement.

 

NOW THEREFORE, in consideration of the mutual premises and covenants hereinafter, the Parties agree as follows.

 

Article 1.         DEFINITION

 

Unless noted otherwise, capitalized terms in this Agreement shall have the following definitions:

 

1.1          “Product(s)” shall mean the Material to be used in OLED products offered for sale by SELLER under this Agreement as specified in Exhibit A attached hereto.  LGD and SELLER may mutually amend Exhibit A in writing from time to time to include new Products or change the Specifications.

 

1.2          “Specifications” shall mean the technical and/or functional specifications and/or requirements of the Product provided by LGD to SELLER which may be revised from time to time.

 

1.3          “Purchase Order(s)” shall mean a written or electronic purchase order issued by BUYER to SELLER.

 

1.4          “Delivery Date” shall mean the date specified in a Purchase Order for the delivery of Products by SELLER to the destination required by a Purchase Order.

 

1.5          “BUYER” shall mean LGD or any entity designated by LGD to purchase Products from SELLER under this Agreement (“LGD Designated Buyer’’).

 

 

1.6          “Technical Information” shall mean any technical fact, data, advice or other information, written or oral, in the form of drawings, diagrams, catalogues, specifications, instructions, parts list, programs, tool, mold, sample, and similar items thereto, with respect to the Products, whether patented or un-patented, which Seller has acquired or may hereafter acquire in the manufacture, design, process, inspection, test, and packing of the Products.

 

1.7          “Material” shall mean any organic chemical compound.

 

Article 2.         PURCHASE OF PRODUCTS

 

2.1          Purchase and Sale of the Products

 

2.1.1        SELLER shall supply the Products to BUYER in accordance with and only in response to Purchase Orders that may be placed by BUYER in accordance with the Forecasts, as set forth in below, from time to time and confirmed by SELLER during the term of this Agreement.  At least *** prior to the date of delivery required by that Purchase Order, BUYER shall place each Purchase Order for the Products with SELLER.

 

2.1.2        Each Purchase Order placed by BUYER will make reference to this Agreement and specify: (i) the quantity of the Product ordered, (ii) a proposed delivery schedule (the Proposed Delivery Date), (iii) unit price, (iv) any other shipping instructions and (v) other requirements/instructions.  BUYER shall send out a Purchaser Order to SELLER in writing or electronically.

 

2.1.3        SELLER shall send a written Purchase Order confirmation within *** after receiving the Purchase Order.  If SELLER doesn’t inform any objection of the Purchase Order confirmation to BUYER, the Purchase Order shall be deemed to be accepted by SELLER.  Any conflict or inconsistency between this Agreement and any Purchase Order shall be governed by this Agreement.

 

2.2          Forecasts

 

LGD will provide a *** forecast of projected quantity of the Products (the Forecast)  to SELLER for a period of ***.  LGD may revise any Forecast after issuance.  Any quantities listed in a Forecast are estimates made by BUYER as an accommodation to SELLER and do not constitute a commitment by BUYER to order those quantities, in whole or in part.  BUYER will use commercially reasonable efforts to place Purchase Order for the Product within the Forecast.  ***.

 

2.3          Inventory; New Products

 

2.3.1        SELLER shall promptly advise BUYER of any new products that are similar to the Products and developed by or available from SELLER which SELLER intends to make commercially available to interested customers.

 

2

 

Article 3.         PRICES, INVOICES AND PAYMENT TERMS

 

3.1          Prices

 

3.1.1        The unit price of the Products to be purchased by BUYER shall be determined by SELLER and LGD upon mutual agreement.

 

3.1.2        The unit price may be changed by mutual agreement of LGD and SELLER on a regular basis or anytime taking into account manufacturing costs of the Products and market conditions.

 

3.1.3        The price is inclusive of any applicable excise, sales or any other such taxes now existing or hereinafter imposed by any taxing authority in Sellers country.  The price is exclusive of any applicable excise, sales or any other such taxes now existing or hereinafter imposed by any taxing authority in Buyer’s country.

 

3.1.4        All prices and calculations will be made in US Dollars, unless otherwise stated.

 

3.1.5        ***.

 

3.1.6        ***.

 

3.2          Invoices

 

Unless otherwise agreed in writing, SELLER shall send all invoices for Products shipped, to the BUYER who issued the Purchase Order for such Products.

 

3.3          Payment Terms

 

Unless otherwise agreed in writing, payment terms for Products ordered under this Agreement shall be made within *** from the invoice date ***.  Payment by BUYER will not be deemed approval or acceptance by BUYER of any Product, or a waiver by LGD of any claim or right.  BUYER may withhold any amounts subject to a dispute from its payment of an invoice, ***.  With respect to any amounts to be paid by BUYER to SELLER hereunder, BUYER may set off against such amounts any amount that SELLER is obligated to pay BUYER under this Agreement.

 

Article 4.         DELIVERY

 

4.1          Title

 

All shipments shall be according to the *** (INCOTERMS 2010) ***.  Title to Products released hereunder shall pass from SELLER to BUYER upon delivery of the Products to BUYER or to the designated carrier or location at ***.

 

4.2          Packing

 

SELLER shall preserve, package, handle and pack the Products so as to protect the Products from loss or damage, in accordance with BUYER’s reasonable requests and in compliance with international commercial practices, government regulations, and other applicable standards.

 

3

 

4.3          Packing List

 

In all delivery of Products, SELLER shall provide a packing list and an invoice which contains the following information: (i) Purchase Order number, (ii) Product part number (if any), (iii) SELLER reference number, (iv) Products quantity shipped, (v) unit price, (vi) Delivery Date, and (vii) serial number of each Product unit (if applicable).

 

4.4          Shipping Costs

 

4.4.1        All shipping and transport expenses and duties shall be borne by either SELLER or BUYER in accordance with the applicable delivery term under the applicable INCOTERMS 2010 rules.

 

4.4.2        If SELLER ships any Product by a method other than as agreed between the Parties in advance, without BUYER’s previous written approval, SELLER shall pay any resulting increase in the cost of freight incurred over the cost of freight which would have been incurred had SELLER complied with the Purchase Order’s shipping instructions.

 

4.5          TIME OF ESSENCE

 

SELLER shall meet the scheduled delivery date(s) as set forth in the Purchase Order and confirmed in the Purchase Order confirmation (the Scheduled Delivery Date).  SELLER understands that time is of the essence to timely deliver all Products in accordance with the terms of the Purchase Order.

 

4.6          Late Delivery; Partial Shipment

 

4.6.1        Late Delivery.  SELLER shall immediately notify the BUYER of any prospective failure to deliver the specified quantity of Products ordered on the Scheduled Delivery Date.

 

In the event SELLER fails to deliver the Products by the Scheduled Delivery Date, BUYER may, in its sole discretion, (i) reject a late delivery s.o. ‘‘time is of the essence” or (ii) accept the late delivery; provided, however, that in any case, SELLER shall bear all extra costs resulting from such late delivery and shall be liable towards BUYER for all costs and damages without prejudice to any other rights accruing under this Agreement or in law.  For the avoidance of doubt, in the event BUYER rejects a late delivery, BUYER shall arrange for the return of the late delivery to SELLER at SELLER’s cost and expense in a transport manner comparable to the delivery transport manner; provided, that in such event, BUYER shall have no liability for any damage or loss incurred in connection with the return of the late delivery.

 

4.6.2        Partial Shipment.  In the event SELLER anticipates delivery of a quantity less than that required in a Purchase Order, SELLER shall promptly notify BUYER of such event whereupon BUYER may, in its sole discretion, (i) reject the partial delivery; or (ii) accept the partial delivery; provided, however, that in any case SELLER shall bear all extra costs resulting from such partial shipment and shall be liable towards BUYER for all costs and damages without prejudice to any other rights accruing under this Agreement or in law. For the avoidance of doubt, in the event BUYER rejects a partial delivery, BUYER shall arrange for the return of the partial delivery to SELLER at SELLER’s cost and expense in a transport manner comparable to the delivery transport manner; provided, that in such event, BUYER shall have no liability for any damage or loss incurred in connection with the return of the partial delivery.

 

4

 

4.7          Overshipment

 

In the event SELLER delivers more Products than stated in the relevant Purchase Order, BUYER may (i) accept the over-delivered quantity for credit against future Purchase Order or (ii) reject the over-delivered quantity and arrange for the return the over-delivered quantity to SELLER at SELLER’s cost and expense in a transport manner comparable to the delivery transport manner; provided, that in such event, BUYER shall have absolutely no liability for any damage or loss incurred in connection with the return of the over-delivered quantity.

 

4.8          Early Delivery

 

SELLER may deliver Products prior to the Scheduled Delivery Date provided that, with respect to delivery occurring more than three (3) days prior to the Scheduled Delivery Date (“Early Delivery”), SELLER obtains BUYER’s written consent at least three (3) working days prior to the delivery date desired by SELLER.  In the event of an Early Delivery without BUYER’s prior written consent, BUYER may, at its sole discretion, (i) accept the Early Delivery and process the relevant invoice as if the Products were delivered on the Scheduled Delivery Date; or (ii) arrange for the return of the Early Delivery to SELLER at SELLER’s cost and expense in a transport manner comparable to the delivery transport manner; provided, that in such event, BUYER shall have absolutely no liability for any damage or loss for the Early Delivery.

 

4.9          ***

 

4.10        SELLER, at its own expense, shall obtain any and all necessary permits or licenses to export the Products from the country of shipment and/or to import, sell, use or otherwise dispose of the Products, including but not limited to the safety standard, in any countries where such Products are imported, sold, used or otherwise disposed of.

 

Article 5.         INSPECTION AND ACCEPTANCE

 

5.1          Inspection

 

Within *** after BUYER actually receives full possession of all of the Products in a Purchase Order, BUYER shall inspect them in accordance with Specifications and BUYER’s Incoming Inspection Standard & Procedure.  ***.

 

5.2          Return of the Non-complying Products

 

BUYER shall have the right to return to SELLER any Product received by BUYER, at the expenses and risk of loss to SELLER, which is: (i) defective, or otherwise not in conformity with the applicable Specification, (ii) not in conformity with the requirements of the relevant Purchase Order or (iii) not in conformity with the warranties set forth in Article 8 below (collectively, “Defective Products”).

 

5

 

Article 6.         QUALITY

 

6.1          Quality System

 

(a)                                  Products will be manufactured under a quality system that ensures compliance with the Agreement and meets the required standards of the ISO 9000 and 14000 series for the Products, if applicable for SELLER.

 

(b)                                 SELLER, upon written request from BUYER, will provide to BUYER copies of SELLER’s quality system documentation and supporting test documentation.  At the request of BUYER, the Parties will create and maintain a combined team to provide oversight of SELLER’s quality systems to ensure SELLER’s compliance with the Agreement.

 

(c)                                  ***.

 

6.2          BUYER’s Right to Inspect Facilities

 

With reasonable advance written notice and in compliance with SELLER’s security and safety requirements, BUYER or its designated representative may inspect SELLER’s production and repair facilities (including but not limited to Product, raw materials, equipment associated manufacturing processes, test and inspection data, reliability data, failure analysis data, corrective action data, and training data) to ensure compliance with the Agreement.  SELLER will use reasonable efforts to secure for BUYER the right to inspect the facilities of SELLER subcontractors and suppliers at no charge to BUYER.

 

6.3          Reports

 

SELLER will provide quality related reports as BUYER may reasonably request.

 

6.4          SELLER Rating

 

BUYER periodically reviews its suppliers through the Supplier Management Process  (SMP).  SELLER will participate in the SMP review process.

 

Article 7.         PRODUCT AND PRODUCTION CHANGES, AND DISCONTINUED PRODUCTS

 

7.1          SELLER may make changes to the Product and/or the production process and provide BUYER with information on change type and samples of the changed Product at least *** months prior to the first proposed shipment of any changed Product.  SELLER warrants that said changes shall not cause material negative effect on form, fit and function of the Products and shall not affect their performance characteristics as set forth in the agreed upon Product Specifications.

 

7.2          SELLER will provide BUYER with at least *** written notice prior to the last date of manufacture of the Discontinued Product (EOL).  SELLER will ship Product to fill the BUYER’s Purchase Order that SELLER has accepted on or before the date of EOL.  Subject to Product availability, SELLER will accept Purchase Order for the Discontinued Products for a period of *** after the date of EOL notice to BUYER.  Additionally, SELLER shall provide replacement for Defective Products, and technical assistance for warranty service for *** from the last date of shipment of EOL.

 

6

 

Article 8.         PRODUCT WARRANTY

 

8.1          General Warranty

 

Each Party warrants that it has the full power and authority to enter into this Agreement and to perform its obligations hereunder.

 

8.2          SELLER represents and warrants on an ongoing basis that:

 

(a)                                  BUYER will acquire good and marketable title to the Products, and that all Products will be free and clear of all liens, claims, encumbrances and other restrictions; and, to the best of its knowledge, SELLER possesses and receives all the rights and licenses in the Products to allow BUYER to fully use, have used, distribute, lease, sell, offer for sale and otherwise dispose of the Products in any form without restrictions or additional charge ***.

 

(b)                                 all Products will be new and unused.

 

(c)                                  all Products will be free from defects in design, materials and workmanship and will conform to Specifications of the Products for *** from the date the Products are accepted by BUYER under this Agreement  (Warranty Period).  The Warranty Period shall start anew for any replaced Product as a result of a defect.

 

(d)                                 all Products delivered have been subject to last quality control not later than *** to the Scheduled Delivery Date.

 

8.3          Defective Product Remedies

 

In the event of any Defective Product during the Warranty Period, BUYER shall promptly notify the SELLER of the Defective Product in writing or other electronic methods, generally describing the nature of the defect and shall, at SELLER’s costs and risk, ship to Seller the Defective Product, using a comparable manner of shipment as used by SELLER for the delivery.  Upon receipt of such notice and the Defective Product from BUYER, SELLER shall replace it with a new Product that is not a Defective Product within *** from the date of receipt of such Defective Product or, if SELLER fails to replace it within *** above, deduct the prices of the Defective Product from the amount of payment herein.  Any and all costs and expenses for replacement of the Defective Product (including fees of transportation and insurance) shall be borne by SELLER.

 

8.4          In case SELLER has (i) supplied the Defective Product; or (ii) breached the warranty set forth in this Article, SELLER shall also bear and compensate BUYER for any and all claims and damages incurred beyond the replacement of the Defective Product.  ***.

 

Article 9.         TECHNICAL ASSISTANCE

 

9.1          For each Product, Seller shall furnish Buyer all necessary Technical Information and such other necessary Technical Information to use the Product.

 

9.2          Upon reasonable request of Buyer, Seller shall provide all necessary training (including follow-up training, if necessary) to Buyer.

 

Article 10. INDEMNIFICATION

 

10.1        SELLER, to the best of its knowledge, represents and warrants that none of the Products, the Technical Information, or the exercise of BUYER’s rights in connection with the foregoing as permitted under this Agreement or as otherwise intended by the Parties infringes any third party’s copyrights, patents, trademarks, trade secrets or other intellectual property or proprietary rights (each, an “IPR”).

 

7

 

10.2        SELLER agrees to defend, indemnify and hold harmless BUYER, its affiliates and subsidiaries, and all their respective directors, officers, employees, agents, customers, suppliers and distributors (collectively, “Indemnified Party”) from and against any and all claims, actions, demands, legal proceedings, liabilities, damages, losses, judgments, authorized settlements, awards, costs and expenses, including without limitation reasonable attorney’s fees, arising out of or in connection with any alleged or actual:

 

(a)                                  infringement and/or misappropriation of any third party’s IPR in connection with the Product and/or Technical Information (collectively, “Indemnified Product”) and/or the exercise of Indemnified Party’s rights in connection with the Indemnified Product ***;

 

(b)                                 claim that a Product provided under this Agreement or its use has caused bodily injury (including death) or has damaged real or tangible personal property (“Injury”); ***;

 

(c)                                  breach of any of SELLER’S representations or warranties contained in this Agreement or any SELLER’s obligations under this Agreement;

 

(d)                                 violation by SELLER of any governmental laws, rules, ordinances or regulations; and/or

 

(e)                                  claim by or on behalf of SELLER’S subcontractors, supplier, parents, subsidiaries, affiliates, employees or agents.

 

10.3        The Indemnified Party shall provide reasonably prompt notice to SELLER in writing of any claim of infringement or any action for infringement of IPR brought against it by a third party arising out of or with respect to the Indemnified Product and the exercise of Indemnified Party’s rights in connection with the Indemnified Product *** (each, a “IPR Claim”).  In such event, SELLER shall, at the option of the Indemnified Party, undertake the defense, or assist the Indemnified Party in the defense of the IPR Claim to final judgment or settlement.  If SELLER undertakes the defense pursuant to this Article 10.3, SELLER shall have sole charge and direction of the defense, and shall pay all costs related thereto, and the Indemnified Party shall render to SELLER, at SELLER’s expense, all reasonable assistance that may be required by SELLER in the defense, and shall have the right to be represented therein by advisory counsel of its own selection for the Indemnified Party’s purposes and at its own expense.  Neither party shall enter into any settlement that affects the other party’s rights or interests without the other party’s prior written approval, which shall not be unreasonably withheld.

 

10.4        In addition to SELLER’s obligations and liabilities above, if any IPR Claim is made or likely to be made, SELLER shall, upon mutual agreement of the Parties and at SELLER’s expense, either (i) procure for the Indemnified Party the right (including to obtain necessary license) to continue to use and market the infringing or allegedly infringing Product (“Accused Product”), (ii) modify the Accused Product so that it is no longer infringing without materially altering the performance, characteristics or functions thereof or (iii) replace it with a non-infringing Product to the extent that it is economically practicable having substantially the same or improved function, capability, and performance, and reimburse the Indemnified Party for any and all reasonable costs incurred by the Indemnified Party in implementing any modified or replacement Product. If in the Indemnified Party’s judgment none of the remedies described above is feasible or practicable after SELLER’s exercise of best efforts, then, the Indemnified Party may in its sole discretion request SELLER to refund all amounts that have been paid by

 

8

 

the Indemnified Party for the Accused Product and compensate the Indemnified Party for any costs and expenses reasonably incurred by the Indemnified Party in obtaining a replacement product, if any.  When the Indemnified Party returns any Accused Product to SELLER, SELLER will reimburse the Indemnified Party for any and all associated shipping and insurance charges.

 

10.5                        ***.

 

Article 11.                   CONFIDENTIALITY

 

11.1                        Each Party (Receiving Party)  shall keep the Confidential Information (as hereinafter defined) received from the other Party (Disclosing Party)  confidential during the term of this Agreement and three (3) years from the expiration or termination of this Agreement.  “Confidential Information” shall mean any and all information, including Technical Information: i) disclosed in tangible form and marked as “Confidential”, “Proprietary’’ or with the legend of similar meaning; or ii) disclosed in intangible form, identified as confidential at the time of disclosure and summarized in writing within thirty (30) days after the initial disclosure.  The existence and terms and conditions of this Agreement shall also be deemed to be the Confidential Information.

 

11.2                        The obligation of confidentiality pursuant to Article 11.1 shall not apply to any information that: i) was known to the Receiving Party without an obligation of confidentiality prior to its receipt thereof; ii) is or becomes publicly available without the Receiving Party’s breach of this Agreement; iii) is rightfully received by the Receiving Party from a third party with the authority to disclose without obligation of confidentiality; iv) is developed independently by the Receiving Party; or (v) is required to be disclosed pursuant to any judicial or administrative proceeding, provided that the Receiving Party immediately after receiving notice of such action notifies the Disclosing Party of such action to give the Disclosing Party the opportunity to seek any other legal remedies to maintain such information in confidence.

 

Article 12.                   TERM AND TERMINATION

 

12.1                        This Agreement shall be effective from the Effective Date and expire on the first (1st) anniversary of the Effective Date (the Term).  The Term shall be automatically renewed for additional periods of 12 months (each a Renewal Term)  unless either Party provides written notice to the other Party at least three (3) months prior to the beginning of a Renewal Term that it does not desire to renew the Agreement.

 

12.2                        This Agreement shall be terminated forthwith upon the sending of notice in writing upon the occurrence of one or more of the following events:

 

(a)                                  by either Party hereto, if the other Party or its creditors or any other eligible party makes a filing for said Party’s liquidation, bankruptcy, reorganization, compulsory composition, or dissolution, or if said Party is unable to pay any debts as they become due except otherwise legally extended, or has explicitly or implicitly suspended payment of any debts as they become due (except debts contested in good faith), or if the creditors of said Party have taken over its management, or if any material or significant part of said Party’s undertaking, property, or assets shall be intervened in, expropriated, or totally or partially confiscated by action of any government;

 

9

 

(b)                                 by either Party hereto, if the other Party shall commit a material breach of any of its obligations under this Agreement which shall not be remedied within thirty (30) days, or a shorter period if expressly required herein, from the giving of written notice requiring said breach to be remedied;

 

(c)                                  by either Party, if there shall at any time occur any change in the ownership or control of either Party which the other Party reasonably deems to be material; or

 

(d)                                 if any subsequent enactment of law or regulation or any subsequent action (or failure to act) by governmental authority in BUYER’s or SELLER’s country shall, in the reasonable opinion of a Party:  (i) make performance of this Agreement impossible or unreasonably expensive or unreasonably difficult for said Party, (ii) materially alter the rights and obligations of the Parties from those agreed and contemplated by this Agreement; or (iii) interfere with the benefits contemplated herein to be received by said Party.

 

12.3                        Termination of this Agreement shall be without prejudice to the accrued rights and liabilities of the Parties at the date of termination, unless waived in writing by the Party enjoying the right or to whom the liability is owed.

 

12.4                        Upon termination of this Agreement for any reason:

 

(a)                                  all obligations undertaken in this Agreement shall forthwith terminate; provided that all terms and conditions of this Agreement which are destined (whether expressed or not) to survive the duration or termination of this Agreement including, without limitation, Articles 8, 10, 11, 12, 13, 14, 15, and 16 shall so survive;

 

(b)                                 SELLER warrants that it shall supply Products shipped to BUYER for a minimum of one (1) year from the shipment date of the Products to BUYER under the same terms and conditions of providing such Products during the duration of this Agreement, and at the end of such one (1) year period, BUYER shall have the right to place a final order for Products under the same terms and conditions of providing such Products during the duration of this Agreement, and these obligations to provide Products shall survive termination of this Agreement;

 

(c)                                  the Forecast and outstanding Purchase Orders, which have been confirmed by SELLER, shall continue to be executed by the Parties in accordance with the terms thereof and the provisions of this Agreement shall continue to apply thereto until the pertinent transactions shall have been completed; and

 

(d)                                 a termination of this Agreement shall not relieve either Party from any obligations accrued to the date of termination or relieve the Party in default or breach from liability for damages to the other for default or breach of this Agreement.

 

Article 13.                   APPLICABLE LAW AND ARBITRATION

 

13.1                        This Agreement shall be construed in accordance with and governed by the laws of the State of California without application of the conflict of laws.  The United Nations Convention on Contracts for the International Sale of Goods shall not apply.

 

13.2                        All disputes, controversies, or differences which may arise between Parties hereto, out of or in connection with this Agreement or breach thereof, which cannot be amicably settled by the Parties hereto, shall be finally settled by arbitration in Singapore in accordance with the Rules of Arbitration of the International Chamber of Commerce then in effect.  The language of arbitral proceedings shall be in the English language, before a three member tribunal.  Each Party shall nominate an arbitrator, and the two party-nominated arbitrators shall appoint the third arbitrator

 

10

 

who shall chair the tribunal.  The award rendered by arbitrators shall be final and binding upon the Parties concerned, and shall be enforceable in any court having competent jurisdiction.

 

Article 14.                   NOTICES

 

All notices which either party is required or may desire to serve upon the other party shall be in writing and hand delivered or sent by facsimile or e-mail transmission or commercial overnight courier provided, however, that all notices concerning any dispute or any alleged breach or termination of this Agreement, in whole or in part, must be sent by overnight courier or certified or registered mail.  Such notices and other communications shall be served and effective upon receipt if hand delivered, on the date indicated on the transmission report of the sender’s machine indicating delivery to the recipient’s facsimile number if sent by facsimile, on the date when the e-mail is delivered to the recipient’s server if sent by e-mail transmission or the day of verified receipt when sent by overnight courier.  All notices and other communications shall be directed to the parties at their respective addresses as set forth below addressed to the party to be served as follows:

 

	
LG   Display Co., Ltd.
    
	
ADDRESS:   1007 Deogeun-ri, Wollong-myeon, Paju-si, Gyeonggi-do, 413-811, Korea
    
	
NAME:
    	
***
    
	
***
    	
 
    
	
FAX:
    	
***
    
	
TEL:
    	
***
    
	
EMAIL:
    	
***
    
	
 
    
	
Novaled
    
	
ADDRESS:   Tatzberg 49 01307 Dresden Germany
    
	
NAME   :
    	
***
    
	
FAX:   
    	
***
    
	
TEL   : 
    	
***
    
	
EMAIL:
    	
***
    

 

Article 15.                   FORCE MAJEURE

 

In the event of any delay in performance or failure of performance of obligations under this Agreement by either Party due to any causes arising from or attributable to acts, omissions, events, accidents or acts of God beyond the reasonable control of the Parties concerned, including, but not limited to, interruption of transportation, embargo, prohibition of import or export of the Products, governmental orders, restriction, riot, storm, flood, earthquake, such delay or failure of performance shall not be deemed a default and the Party so delayed or prevented shall be under no liability for loss or cost suffered by the other Party thereby. In the event that the performance of this Agreement is wholly suspended for a period of three (3) months, either Party may terminate this Agreement by at least thirty (30) days’ notice in writing to the aforesaid effect.

 

Article 16.                   MISCELLANEOUS

 

16.1                        In the event that any provision(s) of this Agreement shall be held invalid or unenforceable by a court of competent jurisdiction or by any future legislative or administrative action, such holding or such action shall not void the validity or enforceability of any other provisions hereof.

 

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16.2                        The failure on the part of either Party to exercise, or any delay in exercising, any right or remedy hereunder shall not operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or future exercise thereof or the exercise of any other right or remedy granted hereby or by any related document or by law.

 

16.3                        This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, assigns and legal representatives.  Neither Party shall have the right to assign or otherwise transfer its rights or obligations under this Agreement, except with the prior written consent of the other Party.  Notwithstanding the foregoing, a successor in interest by merger, operation of law or otherwise of the entire business of either Party, shall acquire all interest of such Party hereunder without the necessity of obtaining prior written consent; provided however that advance written notice shall be provided to the other Party.

 

16.4                        LGD Designated Buyer shall be considered a third party beneficiary of all the rights, remedies or other benefits that LGD is entitled to exercise under or by reason of this Agreement.  LGD may exercise its rights under this Agreement directly and/or through its Designated Buyer.  LGD may treat any default in performance by Seller under a Purchase Order with LGD Designated Buyer as an event of default whereupon LGD may exercise all available right and remedies under the Agreement.

 

16.5                        It is understood that neither Party is constituted an agent, partner, franchisee, employee or servant of the other for any purpose whatsoever.  Each Party shall conduct its business in its own name and shall be solely responsible for its acts, conduct and expenses of its employees and agents.

 

16.6                        This Agreement and all Exhibits attached hereto constitute the entire Agreement between the Parties relative to the purchase and sale of the Products hereunder, and supersede and replace all prior or contemporaneous agreements, written and verbal, between the Parties regarding such Products.

 

16.7                        The terms and conditions set forth herein shall continue to be binding and in full force and effect so long as Products are shipped under this Agreement.  Any addition to or modification of this Agreement shall not be binding unless in writing and signed by duly authorized representatives of both Parties.

 

16.8                        Headings of Articles in this Agreement are for convenience only and do not substantively affect the terms and conditions of this Agreement.  This Agreement may be executed in two (2) or more counterparts, each of which will be deemed original, but all of which together will constitute the same agreement.

 

(THIS SECTION IS INTENTIONALLY LEFT BLANK.]

 

12

 

IN  WITNESS WHEREOF the duly authorized representatives of the Parties hereunder sign this Agreement, the date and year first above written.

 

 

	
Novaled   AG
    	
 
    	
LG   Display Co., Ltd
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Gerd Günther 
    	
 
    	
By:
    	
/s/ Jae-Ik Choi
    
	
 
    	
Name:
    	
Gerd   Günther 
    	
 
    	
 
    	
Name:
    	
Jae-Ik Choi
    
	
 
    	
Title:
    	
CMO
    	
 
    	
 
    	
Title:
    	
Vice President
    

 

13

 

EXHIBIT A.                               PRODUCT

 

a.  Products

 

	
NO.
    	
 
    	
Product Name
    	
 
    	
Part No.
    	
 
    
	
1
    	
 
    	
***
    	
 
    	
***
    	
 
    

 

A-1

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