RESTRICTED ACTIVITY AND PROPRIETARY RIGHTS ASSIGNMENT AGREEMENTAssignment Agreement |
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EXHIBIT 10.6
NATURAL HEALTH TRENDS CORP.
RESTRICTED ACTIVITY AND PROPRIETARY RIGHTS
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ASSIGNMENT AGREEMENT
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Consultant's Name: Mark D.
Woodburn
("Woodburn")
Date:
October 31, 2006
In consideration of Woodburn's engagement by Natural Health
Trends
Corp. (including their subsidiaries, successors and assigns,
the
"Company") and in consideration for and as a condition to the
transactions contemplated by that certain Agreement dated as of
the
date hereof by and between the Company, Terry L. LaCore and
Woodburn,
Woodburn hereby agrees with the Company as follows:
1.
Confidential Information. Woodburn may have received or may
receive and otherwise be exposed to confidential or competitively
sensitive
information of the Company, or of a third party with which the
Company has a
business relationship, relating to the Company's or such third
party's current
or prospective business, research and development activities,
products,
technology, strategy, organization and/or finances (collectively,
"Confidential
Information"). Such Confidential Information, which may be
disclosed orally or
in writing, shall include, without limitation, Technology (as
defined in Section
2(a)), Work Product (as defined in Section 2(a)), plans,
strategies,
negotiations, customer or prospect identities, market analyses,
projections,
forecasts, cost and performance data, sales data, financial
statements, price
lists, pre-release information regarding the Company's products,
personnel lists
and data, and all documents and other materials (including any
notes, drawings,
reports, manuals, notebooks, summaries, extracts or analyses),
whether in
written or electronic form, that disclose or embody such
Confidential
Information.
Confidential Information shall not include information that is now,
or
hereafter becomes, through no act or failure to act on Woodburn's
part,
generally known to the public; information that was rightfully in
Woodburn's
possession without confidentiality restriction prior to the
Company's disclosure
to Woodburn; information that was rightfully obtained by Woodburn
from a third
party who has the right, without obligation to the Company, to
transfer or
disclose such information; or information which Woodburn is
required to disclose
pursuant to judicial order, provided that in the latter case
Woodburn shall
promptly notify the Company and take reasonable steps to assist the
Company in
protecting the Company's rights prior to disclosure. At all times,
both during
Woodburn's relationship with the Company and after the termination
thereof,
Woodburn will keep all Confidential Information in strict
confidence; will not
use Confidential Information except for the purpose of providing
services to the
Company; and will not divulge, publish, disclose or communicate
Confidential
Information, in whole or in part, to any third party. Woodburn
further agrees
that Woodburn will not allow any unauthorized person access to
Confidential
Information, either before or after the termination of this
Agreement, and will
take all action reasonably necessary and satisfactory to the
Company to protect
the confidentiality of Confidential Information. Woodburn agrees
not to
reproduce or copy by any means Confidential Information, except as
reasonably
required to accomplish the purposes of this Agreement, and further
agrees not to
remove any proprietary rights legend from such Confidential
Information or
copies thereof made in accordance with this Agreement. Upon
termination of
<PAGE>
Woodburn's services for any reason, or upon demand by the Company
at any time,
Woodburn's right to use Confidential Information shall immediately
terminate,
and Woodburn shall return promptly to the Company, or destroy, at
the Company's
option, all tangible and electronic materials that disclose or
embody
Confidential Information.
2.
Assignment of Work Product.
--------------------------
(a) For
purposes of this Agreement: "Technology" shall
mean all ideas, concepts, inventions, discoveries,
developments, creations, methods, techniques,
processes, machines, products, devices, compositions
of matter,
improvements, modifications, designs,
systems, specifications, schematics, formulas, mask
works, works of authorship, software, algorithms,
data and know-how, whether or not patentable or
copyrightable, and all related notes, drawings,
reports, manuals, notebooks, summaries, memoranda and
other documentation; "Intellectual Property Rights"
shall mean all worldwide intellectual property rights
including, without limitation, all rights relating to
the protection of inventions, including patents,
patent applications and certificates of invention;
all rights associated with works of authorship,
including copyrights and moral rights; all rights
relating to the protection of trade secrets and
confidential information; all rights related to the
protection of trademarks, logos and service marks;
any rights analogous to those set forth herein, and
all other proprietary rights related to intangible
property; and "Work Product" shall mean any and all
Technology made, conceived, designed, created,
discovered, invented or reduced to practice by
Woodburn during the term of this Agreement that (i)
results from Woodburn's performance of services for
the Company, (ii) is related to the business of the
Company or (iii) is based upon the use of
Confidential Information.
(b) Woodburn
agrees to promptly disclose to the Company
in writing all Work Product upon the development,
conception or creation thereof by Woodburn, as well
as, at any time, upon the request of the Company.
(c) Woodburn
agrees that all Work Product shall be the
sole and exclusive property of the Company, and does
hereby irrevocably and unconditionally transfer and
assign to the Company, its successors and assigns,
all right, title and interest it may have or acquire
in or to any Work Product, including all Intellectual
Property Rights therein. Woodburn further agrees that
any and all works of authorship created, authored or
developed by Woodburn hereunder shall be deemed to be
"works made for hire" within the meaning of the
United States copyright law and, as such, all rights
therein including copyright shall belong solely and
exclusively to the Company from the time of their
creation. To the
extent any such work of authorship
may not be deemed to be a work made for hire,
Woodburn agrees to, and does hereby, irrevocably and
unconditionally transfer and assign to the Company
all right, title, and interest including copyright in
and to such work.
(d) Upon
request by the Company, Woodburn agrees to
execute and
deliver all such documents, certificates,
assignments and other writings, and take such other
2
<PAGE>
actions, as may be necessary or desirable to vest in
the Company ownership in all Work Product as provided
in this Section 2, including, but not limited to, the
execution and delivery of all applications for
securing all United States and foreign patents,
copyrights and other intellectual property rights
relating to Work Product. The Company shall reimburse
Woodburn for any reasonable expenses incurred by
Woodburn at the Company's request to secure title or
legal protection on the Company's behalf for any such
Work Product. In the event that the Company is unable
to secure Woodburn's signature to any document, or if
Woodburn otherwise fails to take any action deemed
necessary by t






