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EXHIBIT 10.19
AMENDED AND RESTATED LICENSE
AGREEMENT
This Amended and Restated License Agreement (the
" Agreement ") is made as of April 6, 2007 between George J.
Coates and Gregory Coates, as licensors (separately and together, "
Licensors ") and Coates International, Ltd., a Delaware
corporation (" Licensee ").
RECITALS:
1. Licensors and
Licensee signed a license agreement on October 23, 2006 (the "
Original License Agreements "); and
2. Licensee and
Licensors wish to amend the terms of the Original License
Agreement;
NOW THEREFORE, for this and
other valuable consideration, the receipt of which is hereby
acknowledged, and intending to be legally bound, the parties agree
as follows:
"Cause" - with respect to each Licensor
shall have the meaning ascribed to such term in such
Licensor’s employment agreement as it may be amended from
time to time.
"CSRV" means the spherical rotary
valve system invented and developed by Licensors as it may be
improved or modified from time to time.
"CSRV Engine" shall mean an internal
combustion engine which incorporates the CSRV.
"Field of Use" shall mean the
development, manufacturing, sale and/or distribution of CSRV
Engines.
"Good Reason" - with respect to each
Licensor shall have the meaning ascribed to such term in such
Licensor’s employment agreement as may be amended from time
to time.
"Intellectual Property Rights" means
patent rights, copyright rights (including, but not limited to,
moral rights), Know-how, license rights, and any other intellectual
property rights (other than trademarks) recognized by the law of
any applicable jurisdiction.
"Know-How" means trade secrets
(including trade secrets as defined in the United States Uniform
Trade Secrets Act and under corresponding foreign statutory law and
common law), concepts, knowledge, technical information, and data
including, but not limited to, algorithms, engineering, scientific
and practical information and formulae, equipment designs,
information or materials and commercial sources thereof, technical
information recorded in reports, on drawings, in specifications and
in other writings, irrespective of the form of expression or media
upon or in which it is recorded, or transmitted.
"Letter Agreement" shall mean a certain
letter agreement dated July 7, 2006 by and between Licensee and
WWE.
"Licensed Intellectual Property Rights"
shall mean (a) all patents and patent applications currently owned
or controlled by one or both Licensors, or as to which one or both
Licensors has the right to license or sublicense, that directly
relate to the CSRV, (b) any patents that shall issue on any of such
patent and patent applications, (c) any patents derived from
continuation, continuation-in-part, divisional, reissue
or reexamination applications based on the patents and patent
applications referred to in clauses (a) or (b) above to the extent
related to the same subject matter, and (d) any other Intellectual
Property Rights currently owned by one or both Licensors or as to
which a Licensor currently has the right to license or sublicense
that directly relate to the CSRV or are an improvement to any of
the foregoing. Licensed Intellectual Property Rights shall also
include any Intellectual Property Rights directly relating to the
CSRV or are an improvement to any of the foregoing invented or
developed by one or both Licensors or as to which a Licensor
acquires the right to license or sublicense during the period of
time that the applicable Licensor is employed by, or a consultant
to, the Licensee. To clarify, this only applies to the territory of
the Western Hemisphere, as hereinafter defined.
"Territory" shall mean the countries
comprising North America, Central America and South America and
their respective territories and possessions (the "Western
Hemisphere").
"WWE" shall mean Well to Wire
Energy Inc., a Canada-based corporation.
2.1 Licensors hereby
grant to Licensee a sole and exclusive, fully paid-up and
royalty-free, perpetual and irrevocable (subject to the termination
of this Agreement) license in the Territory, with the right to
sublicense, under the Licensed Intellectual Property Rights, solely
in the Field of Use, to develop, make, have made, use, sell, offer
to sell, lease and import products and to develop and perform
processes that use any of the Licensed Intellectual Property
Rights.
2.2 Licensors hereby
grant to Licensee during the term of this Agreement an exclusive
license to use and display trademarks owned by Licensors (the "
Marks ") as necessary or appropriate to conduct its business
in the Field of Use within the Territory; provided that Licensors
may require Licensee to cease or suspend use of particular Mark(s)
for good cause (for example, because of Licensor’s business
decision to modify or abandon a Mark). Each use or display of Marks
by Licensee will be in conformance with any trademark usage
guidelines that Licensors may communicate to Licensee from time to
time, will be subject to Licensor’s prior written approval,
and will be accompanied by the appropriate service mark symbol
(either "tm" or "sm") and a legend specifying that such Marks are
trademarks or service marks of Licensors. Licensee will provide
Licensors with a copy of any materials it has created or uses
bearing any of Licensors’ Marks. If Licensee’s use of
any Marks, or if any material bearing such Marks, is deficient in
quality, as reasonably determined by Licensors, Licensee will
promptly remedy such deficiencies upon receipt of written notice of
such deficiencies from Licensors. Nothing herein will grant to
Licensee any right, title or interest in the Marks. All goodwill
resulting from Licensee’s use of the Marks will inure solely
to Licensors. Licensee will not, at any time during or after the
term of this Agreement, register, attempt to register, claim any
interest in, contest the use of, or otherwise adversely affect the
validity of any of the Marks (including, without limitation any act
or assistance to any act, which may infringe or lead to the
infringement of any such Marks).
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2.3 The Licensors
confirm that WWE is entitled to a right of first refusal from the
Licensee to acquire a license, use, sell, lease and market the
Coates electrical generation systems worldwide, and agree that, in
the event WWE exercises such right anywhere outside of the
Territory, Licensors, as applicable, hereby grant Licensee any
additional Intellectual Property Rights, for the sole purpose of
sublicensing them to WWE, necessary for WWE to market the Coates
electrical generation systems anywhere it has acquired such
marketing rights from Licensee.
Each of the Licensors undertakes and covenants
that he shall not sell, assign, grant any license, lien or
pledge with respect to the Intellectual Property Rights that are
inconsistent with the rights of the Licensee under this Agreement
or that would preclude the grant of any rights to which the
Licensee may be entitled under this Agreement. In the event that
any of the provisions of this Section 3 are inconsistent with the
provisions of Section 2, then the provision most favorable to the
Licensee shall control.
The term of this Agreement shall commence as of
the date hereof (the " Effective Date ") and shall remain in
effect perpetually, unless terminated in accordance with the
provisions of this Agreement.
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5.
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PATENT PROTECTION AND INFRINGEMENT:
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5.1 Licensee, during
the term of this Agreement, is responsi
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