EXHIBIT 10.2
LICENSE
This Agreement, by and between Paragon Trade Brands, Inc., a Delaware
corporation ("Licensee"), and Weyerhaeuser Company, a Washington corporation
("Licensor").
W I T N E S S E T H:
WHEREAS, Licensor and Licensee have executed that certain Asset Transfer
Agreement dated as of January 26, 1993 ("Transfer Agreement") providing for the
sale of certain assets relating to the business of making and selling infant
diapers of Licensor to Licensee and further providing in the Intellectual
Property Agreement the licensing and sublicensing of certain technical
information, copyrights and patents relating to such business;
WHEREAS, Licensor has acquired title to the patents rights and proprietary
technology, defined in the Intellectual Property Agreement as Secondary
Intellectual Property Rights.
WHEREAS, Licensee desires to have a license to such Secondary Intellectual
Property Rights.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter
recited and other good and valuable consideration, the parties hereto agree as
follows:
1. Definitions
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1.1 "Absorbent Article Patent" shall mean the invention described and
claimed in U.S. Patent Application Serial No. 07/467,797 filed January 16, 1990
For: "Absorbent Article With Superabsorbent Particle Containing Insert Pad and
Liquid Dispersion Pad" Inventors: Xxxxxxx X. Xxxxx, Xx., Xxxxxxx X. Xxxxxx, E.
Xxxxx Xxxxxxxxx, Xxxxxx X. Xxxxx and
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Xxxxxxxx Xxxxxxxxxxx and any U.S. or foreign patent which result from the
issuance, re-examination, reissue, extension of this application or any
continuation or division thereof.
1.2 "Valid Claim" shall mean a claim in a patent which has not lapsed or
become abandoned and which claim has not been declared null or invalid by an
irrevocable or unappealed decision or judgment of a patent office or a court of
competent jurisdiction.
1.3 "Process Automation Systems" shall mean process control systems
developed for the Business by Licensor prior to the Closing Date, which systems
are being or have been installed, and which are identified on Attachment A
hereof.
1.4 The definitions in the Asset Transfer Agreement and in the Intellectual
Property Agreement are expressly made a part of this Agreement as fully as
though completely set forth herein.
2. Grants
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2.1 Licensor hereby grants to Licensee a paid-up, royalty free, worldwide,
non-exclusive license to utilize the information contained in the Absorbent
Article Patent application to manufacture, have manufactured, use and sell
absorbent products.
2.2 Licensor hereby grants to Licensee a paid-up, royalty free, worldwide,
non-exclusive license to manufacture, have manufactured, use and sell absorbent
products within the scope of any Valid Claim of any Absorbent Article Patent.
2.3 Licensor hereby grants to Licensee a paid-up, royalty free, worldwide,
nonexclusive license to utilize in the business of Licensee the Process
Automation Systems to manufacture, have manufactured, use and sell absorbent
products.
3. Miscellaneous Provisions
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3.1 Licensor makes no warranty or representation that any patent rights can
or will be obtained relating to Absorbent Article Patent Rights. Any decision
regarding what patent rights to seek, maintain or abandon shall be solely at
Licensor's discretion. However, in the event Licensor decides not to seek or
maintain such patent protection, Licensor will so notify Licensee of Licensor's
decision in such regard and Licensee shall have thirty (30) days in which to
notify Licensor that Licensee desires to seek protection, or continue the
prosecution and/or maintenance of such patent or patent applications or pursue
patent
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protection at Licensee's sole discretion and cost. Upon receipt of such notice
Licensor shall promptly execute an assignment of all right, title and interest
in and to the invention offered and shall execute any further documents as may
be reasonably requested by Licensee; Licensor shall retain a royalty fee,
nonexclusive right to practice such invention or patent.
3.2 The term of this License shall extend from the Closing Date until the
expiration of the last to expire patent subject hereto, if any, and the right to
use the information of Section 2.1 and 2.3 shall continue without time limit.
3.3 Terms relating to Confidentiality, Assignment, Governing Law and other
issues shall be as provided in the Intellectual Property Agreement.
IN WITNESS WHEREOF, this License has been executed by the parties hereto as
of the dates noted below:
Licensor: Licensee:
WEYERHAEUSER COMPANY PARAGON TRADE BRANDS, INC.
By /s/ Xxxxxx X. Xxxxx By /s/ B.V. Xxxxxxx
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(Signature) (Signature)
Xxxxxx X. Xxxxx B. V. Xxxxxxx
Deputy General Counsel President
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(Print Name and Title) (Print Name and Title)
FEB 2 1993 FEB 2 1993
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(Date) (Date)
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ATTACHMENT A
PROCESS AUTOMATION SYSTEMS
Moisture Control System
SAP Monitoring System
Video Imaging
Diaper Weight SQC System
Diaper Bag Weight Monitor
Target SAP Motor Control for Valve
Speed Monitor
Plant-Wide Information System
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