SEC Contract Filing

Filing Date: 2018-09-28

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>loop_ex102.htm
<DESCRIPTION>LICENSE AGREEMENT
<TEXT>
<html><head><title>loop_ex102.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="text-align:justify;font:10pt TIMES NEW ROMAN;margin:0px 7%"><p style="MARGIN: 0px" align="right"><b>EXHIBIT 10.2</b></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="right"><i>Execution Copy</i></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in" align="center"><b>LICENSE AGREEMENT</b></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in" align="justify">This License Agreement (this &#8220;<u>Agreement</u>&#8221;) is made and entered into as of September __, 2018 (the &#8220;<u>Effective Date</u>&#8221;), between Loop Industries, Inc., a Nevada corporation with a principal place of business at 480 Fernand-Poitras, Terrebonne, Quebec (&#8220;<u>Loop</u>&#8221;), and Indorama Loop Technologies, LLC, a Delaware limited liability company with a principal place of business at [***] (&#8220;<u>Joint Venture Company</u>&#8221;) (each of Loop and Joint Venture Company is a &#8220;<u>Party</u>&#8221;; together they are the &#8220;<u>Parties</u>&#8221;).</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in" align="center"><b>BACKGROUND</b></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in" align="justify">A. The Loop Parties have developed a proprietary depolymerization process that decouples plastic from fossil fuels, producing dimethylterepthalate (&#8220;<u>DMT</u>&#8221;) and monoethylene glycol (&#8220;<u>MEG</u>&#8221;) for the production of polyethylene terephthalate (&#8220;<u>PET</u>&#8221;) plastic that can be used for a variety of polyester applications.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in" align="justify">B. Concurrently with the execution of this Agreement, Loop Innovations, LLC, a Delaware limited liability company and a subsidiary of Loop (&#8220;<u>Loop Innovations</u>&#8221;), and Indorama Ventures Holdings LP, a Delaware limited partnership (&#8220;<u>IVH</u>&#8221;), have formed Joint Venture Company to develop, construct, own and operate chemical upcycling polyester resin (&#8220;<u>CUPET</u>&#8221;) plants through SPVs, the initial of which will be at a facility of [***], a Delaware corporation and a subsidiary of IVH, located in [***], the United States of America (such facility, the &#8220;[***]<u> Facility</u>&#8221;), and to, among other things, manufacture Licensed Products (as defined below) at [***] Facility, and potentially other facilities, for sale throughout the world (such contemplated venture, the &#8220;<u>CUPET Project</u>&#8221;).</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in" align="justify">C. In connection with the CUPET Project, Joint Venture Company for itself and its Subsidiaries (individually a &#8220;JV Party&#8221;, and collectively, &#8220;<u>JV Parties</u>&#8221;) wishes to receive from the Loop Parties, and the Loop Parties wish to license to JV Parties, certain Loop Patents and Related Loop Know-How (each term as defined below) for the purpose of retrofitting the [***] Facility (and potentially other facilities) to manufacture, use, market, and sell Licensed Products under the terms and conditions set forth in this Agreement.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in" align="justify">Now, therefore, in consideration of the mutual covenants and premises contained in this Agreement, and other good and valuable consideration, the Parties agree as follows.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0in" align="center"><b><b>ARTICLE 1</b></b></p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0in" align="center"><b><u>DEFINITIONS</u></b></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in" align="justify">1.1 &#8220;<u>Affiliate</u>&#8221; means, with respect to a Party, any corporation or other entity that is directly or indirectly controlling, controlled by or under the common control with such Party. For the purpose of this definition, &#8220;control&#8221; means the direct or indirect ownership of at least fifty percent (50%) of the outstanding shares or other voting rights of the subject entity to elect directors (or, in the case of an entity that is not a corporation, for the election of the corresponding managing authority), or if not meeting the preceding, any entity owned or controlled by or owning or controlling at the maximum control or ownership right permitted in the country where such entity exists. </p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px">[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"> <table id="pagebreakf9cdf5e3-2e27-49f9-8909-2e4beefc3427" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td class="hpbhr">&nbsp;</td></tr> <tr> <td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr> <tr> <td> <div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr> <tr> <td>&nbsp;</td></tr></table></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in" align="justify">1.2 &#8220;<u>Authorized Customer</u>&#8221; means a Loop Party customer that is a party to a Transferred Contract, solely with respect to the Product quantities covered by the Transferred Contract.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in" align="justify">1.3 &#8220;<u>Control</u>&#8221; means