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EXHIBIT 10.9
PATENT
AND
TECHNICAL ASSISTANCE AGREEMENT
This Know How and Patent License and Technical Assistance Agreement,
dated as of September 30, 1999 is by and between APL Engineered Materials, Inc.
an Ohio Corporation having offices at 0000 X. Xxxxxx Xxxx, Xxxxxx, Xxxxxxxx
00000 ("APL"), Advanced Lighting Technologies, Inc., an Ohio corporation having
offices at 00000 Xxxxxx Xxxx, Xxxxx, Xxxx 00000 ("ADLT") and General Electric
Company, a New York corporation acting through its GE Lighting business ("GEL")
and having offices at 0000 Xxxxx Xxxx, Xxxxxxxxx, XX 00000.
WITNESSETH
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WHEREAS, APL, ADLT and GEL are parties to a Lamp Materials Purchase
Agreement dated as of September 30, 1999, (as the same may be amended from time
to time, the "Materials Purchase Agreement") which the parties deem to be an
agreement supplementary to this Agreement (as contemplated by section 365 of
Title XI of the U.S. Code) providing for the purchase and sale of metal halide
pellet and sodium amalgam products more specifically described in that Agreement
(the "Products") from APL to GEL; and
WHEREAS, GEL requires a guaranteed source of supply of Products and APL
is currently the sole source of such products that meet GEL's specification and
quality requirements; and
WHEREAS, APL has agreed to provide GEL access to the technology
utilized by APL in making Products for GEL under the circumstances and with the
constraints specified in this Agreement.
NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties
hereto agree as follows.
1. DEFINITIONS. For the purposes of this Agreement:
"Bankruptcy" shall mean any act, event, and circumstances whereby (a)
an involuntary proceeding shall be commenced or an involuntary petition shall be
filed in a court of competent jurisdiction seeking (i) relief in respect of a
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party or of a substantial part of the property or assets of such party under
Title 11 of the United States Code, as now constituted or hereafter amended, or
any other federal or state bankruptcy, insolvency, receivership, or similar law;
(ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator, or similar official for a party or any substantial part of the
property or assets of such party; (iii) the winding-up or liquidation of a
party, and such proceeding or petition shall continue undismissed for sixty (60)
days or an order or decree approving or ordering any of the foregoing shall be
entered, or (b) a party shall (i) voluntarily commence any proceeding or
file any petition seeking relief under Title 11 of the United States Code, as
now constituted or hereafter amended, or any other federal or state bankruptcy,
insolvency, receivership or similar law; (ii) consent to the institution of, or
fail to contest in a timely and appropriate manner, any proceeding or the filing
or any petition described in Part (a) above, (iii) apply for or consent to the
appointment of a receiver, trustee, custodian, sequestrator, conservator, or
similar official for such party or for a substantial part of the property or
assets of such party; (iv) file an answer admitting the material allegations of
a petition filed against it in any such proceeding; (v) make a general
assignment for the benefit of creditors; (vi) become unable, admit in writing
its inability, or fail generally to pay its debts as they become due; or (vii)
take any action for the purpose of the foregoing.
"Change of Control" shall mean with respect to an entity any of the following:
(a) any person or group of persons shall have acquired beneficial ownership (as
defined in Rule 13d-3, promulgated under the Securities Exchange Act of 1934, as
amended) of 50% or more of the issued and outstanding shares of common stock of
the entity, (b) the entity shall be a party to a merger or consolidation in
which it is not the survivor or in which the entity's shareholders immediately
prior thereto own less than a majority of the outstanding voting stock of the
survivor, or (c) the entity shall have sold, leased or otherwise transferred all
or substantially all of its assets in one transaction or a series of related
transactions.
"Equipment" shall mean machinery, equipment and apparatus used or adapted for
use in the manufacture, assembly and testing of Products and in the carrying out
of Processes.
"Know How Record" shall mean and include the written description (as the same
may be updated from time to time) that clearly defines the Product Technology,
Processes, procedures, quality systems and Equipment used from time to time in
the production of Products, which written description will at all times enable
technicians to produce Products to the desired specifications. "Patents" means:
patents (including patents of importation, patents of confirmation, patents of
improvement, patents and certificates of addition and utility model patents, as
well as divisions, reissues, continuations, continuations-in-part reexamination
certificates, renewals and extensions of
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any of the foregoing) and applications therefor, and patents which may issue on
such applications, covering inventions with respect to which the first
application for patent anywhere was filed prior to the date of expiration or any
prior termination of this Agreement.
"Processes" shall mean the processes, methods and techniques adapted for use in
the manufacture, assembly and testing of Products.
"Products" shall mean metal halide pellets and sodium amalgams referred to in
EXHIBIT "A" attached to the Materials Purchase Agreement, used as part of the
fill in high intensity discharge lamps for general lighting purposes
manufactured by GEL, and such other materials and products that are listed on
EXHIBIT "A", as such exhibit may be updated from time to time by GEL and APL.
"Product Technology" shall mean and include, all documented and undocumented
technical information, data and know how in whatever form available, which
presently exists or is developed pertaining to the Products, including, without
limitation, research and development, design, engineering, design automation,
layout, drafting, manufacturing, quality control, equipment, maintenance,
standards, procedures, processes, publications, technical writings, facilities,
services and utilities. Product Technology shall include, without limitation,
trade secrets, computer software, drawings, material lists, plans,
specifications, procedures and control data, test methods, and engineering and
manufacturing data.
"Specifications" shall mean Product specifications included in the Quality
Procurement Specification of GEL in the form attached to the Materials Purchase
Agreement as EXHIBIT "E".
"Subsidiary" shall mean a company or other entity in which GEL directly or
indirectly owns or controls at least twenty percent (20%) of the voting stock.
2. KNOW HOW AND PRODUCT TECHNOLOGY LICENSE AND TECHNICAL ASSISTANCE.
Subject to the provisions of section 3 below, APL and ADLT hereby, jointly and
severally;
(a) grant and agree to grant to GEL and its Subsidiaries a right of
access to and right to use the Know How Record and Product Technology together
with an irrevocable, worldwide, nonexclusive, nontransferable (other than as
provided in section 12), fully paid up license to make, have made and use (but
not sell to third parties) Products, and to use Equipment and Processes in all
countries of the world. The foregoing grant consists of a license under Patents
owned or controlled by either or both of APL or ADLT or which either or both has
or acquires the right to grant such licenses and right to use for such purposes.
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(b) agree to update and maintain on a continual basis the Know How
Record so that it clearly defines the current processes, procedures, quality
systems, equipment and apparatus used in producing Products in such manner and
in sufficient detail to enable technicians to produce Product to the
Specifications.
(c) deposit and agree to maintain an updated version of the Know How
Record with the General Counsel of GEL to be held in trust for GEL for use by
GEL upon the occurrence of an Access Event (referred to in section 3, below).
(d) agree that, upon the occurrence of an Access Event (referred to in
section 3, below), either or both of APL or ADLT will take all necessary action
to cause GEL to be furnished with a complete copy of all information and
documents included in the Know How Record. In addition, APL will provide two (2)
GEL representatives with training relating to the Processes, techniques and
Equipment used in producing Products and in connection therewith will exert all
reasonable efforts to enable GEL to duplicate APL's Processes, techniques and
results. GEL will reimburse APL for all reasonable out of pocket costs for
providing such training.
3. RESTRICTIONS ON RIGHT TO USE. Notwithstanding the present grant of
the irrevocable, non exclusive license by ADLT and APL to GEL pursuant to
section 2(a), above, GEL agrees that it will not exercise its rights of access
to and right to use the Know How Record or Product Technology or license and
technical assistance pertaining to the Know How Record and Product Technology,
above until the occurrence of any one or more of the following (an "Access
Event"):
(a) APL fails to deliver to GEL, as Purchaser under the Materials
Purchase Agreement, within sixty (60) days of the date specified in any purchase
order of GEL, qualified, existing Products complying with the QPS and the
Specifications applicable to such order; PROVIDED, HOWEVER, if failure of
delivery is caused by an extraordinary event beyond the reasonable control of
APL and without the gross negligence of APL, then the sixty (60) day period
shall be extended to one hundred twenty (120) days.
(b) the occurrence of a material breach by APL of section 3(b), 3(c),
4(b), 8 or 11 of the Materials Purchase Agreement, which breach has continued
unremedied for thirty (30) days after receipt of notice thereof (which notice
shall specify the material breach).
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(c) APL terminates the Materials Purchase Agreement pursuant to Section
6.(2) thereof.
(d) in the event that there is a Change of Control of APL.
(e) in the event that either ADLT or APL has an event of
Bankruptcy.
4. PROPRIETARY INFORMATION.
(a) For purposes of this Agreement, the term "Proprietary Information"
is understood to mean the Know How Record and Product Technology which is
clearly and conspicuously labeled with "Proprietary Information" or other
equivalent legend. Proprietary Information is also understood to include such
information and data disclosed orally or visually provided it is identified at
the time of disclosure as proprietary and, provided further, that within thirty
(30) days thereafter, a written summary of such oral or visual disclosure
bearing the aforesaid type of label or legend, is provided to the receiving
party.
(b) Proprietary Information furnished hereunder shall be (1) used
solely for the purpose of the license granted pursuant to section 2 and as
contemplated by this Agreement; and (2) held in confidence for the term of this
Agreement and ten (10) years after its termination.
(c) GEL agrees that Proprietary Information will be restricted to those
employees involved in performance of this Agreement and the Materials Purchase
Agreement who have been informed of the terms and conditions hereof.
(d) Notwithstanding the above stated obligations of restricted use and
confidentiality, the receiving party will not be liable for disclosure or use by
such party of the information which it can establish by tangible evidence:
(1) was rightfully in its possession or known to it prior to
receipt from the disclosing party;
(2) is or becomes known to the public through disclosure in a
printed publication or in an issued patent (without breach of the
receiving party's obligations hereunder);
(3) was rightfully acquired by the receiving party from a third
party, which generated such information independently of
Proprietary Information;
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(4) was necessarily disclosed by its use or embodiment in a product
that has been placed in commerce by the disclosing party; or
(5) was independently developed by the receiving party provided
that the person or persons developing the same have not had access
to Proprietary Information.
5. BANKRUPTCY. In the event either ADLT or APL commences or has
commenced against it a bankruptcy case or similar proceeding (such party, the
"Bankrupt Party"), GEL (the "Non-Bankrupt Party")shall have all rights available
to licensees under the Bankruptcy Code (defined below). Unless and until such
time as the Bankrupt Party or its trustee may reject any license granted
hereunder, a Non-Bankrupt Party may request in writing that the Bankrupt Party
or its trustee, as the case may be, (a) perform under the terms and conditions
of this License and other agreements deemed supplementary hereto, (b) not
interfere with the rights of the Non-Bankrupt Party as provided in this License
to the Know How Record and Product Technology and (c) require the provision of
the Know How Record and the Product Technology. The Bankrupt Party acknowledges
and agrees that if it as a debtor-in-possession or its trustee in Bankruptcy in
a case under Title 11 of the United States Code, as amended (the "Bankruptcy
Code"), rejects any of the rights granted in this License, as provided in
Section 365(n) of the Bankruptcy Code, the Non-Bankrupt Party may elect to
retain its rights to the Know How Record and Product Technology under this
License. Upon written request of the Non-Bankrupt Party to the Bankrupt Party or
its trustee, the Bankrupt Party or its trustee shall not interfere with the
rights of the Non-Bankrupt Party to continue its use of the Know How Record and
Product Technology, including any right to obtain the same from another entity.
The parties agree that the Bankrupt Party will seek an order assuming this
License Agreement within 60 days of the commencement of a bankruptcy case or
other similar proceeding. This Section 5 shall survive any termination of this
License.
6. TERM. This Agreement shall become effective as of the date first
above written upon the execution hereof by all parties and shall continue for
the longer of (a) ten (10) years after or (b) the life of the last Patent issued
or applied for prior to, the date on which GEL ceases to purchase any Products
from APL (or any successor of APL) under the Materials Purchase Agreement or
otherwise, unless the parties hereto otherwise agree in writing.
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7. REPRESENTATIONS AND WARRANTIES. APL and ADLT jointly and severally
represent and warrant to GEL that:
(a) The Know How Record and the Product Technology is and will be
maintained on a continual basis so that it will at all times clearly
define the current Processes, procedures, quality systems, Equipment
and apparatus used by APL in producing Product and be in sufficient
detail to enable technicians to produce Product to the Specifications.
(b) APL is the legal and beneficial owner of all right, title and
interest in and to the Know How Record and Product Technology, and that
neither APL nor ADLT is bound by or a party to any other contracts,
options, licenses, assignments, or agreements of any kind which would
prevent, prohibit, or otherwise interfere with the ability of APL and
ADLT to meet their respective obligations to GEL under or arising out
of this Agreement.
(c) There are no pending or threatened claims alleging, or
potential claims that could reasonably be expected to be alleged, that
any or all of the Know How Record or Product Technology infringes or
conflicts with the intellectual property rights of others.
8. INDEMNITY.
(a) Each of APL and ADLT, jointly and severally, agrees to defend,
indemnify, and hold harmless GEL against all liability, loss, cost, damages,
claims or expenses (including reasonable attorneys fees) arising out of any
claims or suits, whatever their nature and however arising, which may be brought
or made against GEL by reason of or arising from: (i) the breach by APL or ADLT
of any or all of its representations or warranties; and (ii) any allegation that
use of any or all of the Know How Record or Product Technology infringes,
interferes with, or otherwise violates the intellectual property rights or other
proprietary rights of a third party.
(b) In the event that the Know How Record or Product Technology
licensed to GEL pursuant to this Agreement, in whole or in part, is finally
determined, by settlement or judicial action, to infringe a third party
intellectual property right or other proprietary right, then at the written
request and option of GEL, APL shall (i) modify, at APL's sole cost and expense,
the allegedly infringing Know How Record or Product Technology to be
non-infringing; or (ii) substitute, at APL's sole cost and expense,
non-infringing intellectual property.
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9. NOTICES. Any notice required or permitted by this Agreement or given
in connection herewith shall be in writing and shall be given by personal
delivery, receipted facsimile, receipted e-mail, or by first-class, certified,
or registered mail, postage prepaid, at or to the addresses of the parties set
forth above. Notices shall be effective upon receipt by the party to which they
are addressed.
10. GOVERNING LAW. This Agreement shall be governed by and interpreted
in accordance with the laws of the State of Ohio, without reference to its law
of conflicts.
11. WAIVERS. The failure of a party to enforce at any time, or for any
period of time, any of the provisions of this Agreement shall not be construed
as a waiver of such provision or of the right of the party thereafter to enforce
each and every such provision. Any waiver must be in writing, signed by the
party to be bound thereby. Any waiver of any term or condition of this Agreement
shall not be construed to be a waiver of any other term or condition or a waiver
of the same term and condition subsequently to be kept and performed.
12. ASSIGNMENT. Neither this Agreement nor any rights or obligations
hereunder may be assigned, subcontracted or otherwise transferred by any party
without the prior written consent of others; PROVIDED, HOWEVER, that:
(a) GEL may assign its rights and obligations to an entity acquiring
the metal halide lamp manufacturing business of GEL, without prior written
consent of APL and ADLT, if the proposed assignee accepts in writing the
provisions of this Agreement and becomes, in all respects, bound thereby in the
place and stead of GEL; and
(b) any party may assign this Agreement or any right or obligation
arising hereunder to a parent or a directly majority-owned and controlled
subsidiary of such party; provided however, that such assignment shall not in
any way affect a party's obligations or liabilities under this Agreement, and
further provided that should said assignee cease to be an Affiliate of the
assigning party, such assignee shall be obligated to reconvey all rights and
obligations so assigned back to the original assignor party.
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13. ENTIRE AGREEMENT; BINDING EFFECT. This Agreement and the Materials
Purchase Agreement embody the entire agreement of the parties with respect to
the subject matter hereof and thereof and supersede any and all prior
understandings and/or agreements. This Agreement shall inure to the benefit of
and bind the successors and permitted assigns of the parties.
14. GOVERNING LAW. The law of the State of Ohio shall govern the
interpretation and application of this Agreement without regard to its conflicts
of law provisions.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their authorized representatives.
GENERAL ELECTRIC COMPANY APL ENGINEERED MATERIALS, INC.
GE Lighting
By: /s/ Xxxxxx X. Xxxx By: /s/ Xxxxx Xxxxxxxxxxxx
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Title: Title: President
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ADVANCED LIGHTING TECHNOLOGIES, INC.
By: /s/ Xxxxxxxx X. Xxxxx
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Title:
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