THIS PATENT
LICENSE AGREEMENT (“Agreement”) is entered into and
effective this
day of
, 1999, by and between Sutura, Inc., & Delaware corporation
having a place of business at 17080 Newhope Street, Fountain
Valley, California 92708 (“LICENSOR.”) and Sterilis,
Inc., a California corporation also having a place of business at
17080 Newhope Street, Fountain Valley, California 92708
(“LICENSEE”).
A. LICENSOR
is the owner of certain Licensed Patents (defined below) relating
to suturing devices,
B. LICENSEE
desires to obtain an exclusive, worldwide license to manufacture
and sell Such devices in LICENSEE’s Field of Use (as defined
below), and LICENSOR is willing to grant such a license to
LICENSEE.
NOW,
THEREFORE, in consideration of the promises, mutual promises and
covenants contained herein, the parties agree as
follows:
For
purposes of this Agreement, the following terms shall have the
meanings set forth below:
A. “Licensed
Patents” shall mean the patents and patent applications
listed in Exhibit A, including all divisions, continuations
and continuation-in-part thereof, all patent applications claiming
priority therefrom, and all patents\ which may be granted thereon,
all rights of priority, and all reissues, re-examinations, and
extensions thereof.
B. “LICENSEE’s
Field of Use” shall mean the obstetrical and/or gynecological
field or market.
C. “Licensed
Products” shall mean [illegible] devices covered by one or
more claims of the Licensed Patents.
A.
LICENSOR hereby grants to LICENSEE, and LICENSEE accepts an
exclusive, worldwide License under the licensed Patents to
(a) make, have made, and import Licensed Products, and
(b) use and sell (or otherwise dispose of) Licenced Products
solely within LICENSEE’s Field of Use.
B. LICENSEE
shall have the right to sublicense any of the rights provided to
LICENSEE by the terms of the Agreement.
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As
monotary consideration for the license granted herein, LICENSEE
shall pay to LICENSOR a nonrefundable license fee of Two Hundred
Fifty Thousand Dollars (3250,000) upon execution of this
Agreement.
A. LICENSEE
acknowledges that LICENSOR is the sole owner of the Licensed
Patents, and LICENSEE agrees that it does not obtain any interest
in the licensed Patents except for the rights granted
herein.
B. LICENSEE
agrees not to take any action challenging or opposing, on any
grounds whatsoever, the ownership by LICENSOR of the Licensed
Patents, or LICENSOR’s Intellectual property rights therein.
Furthermore, LICENSEE agrees not to contest the validity or
enforceability, or assist to request any third party to contest the
validity or enforceability of any of the licensed Patents, to the
extent and in jurisdictions where permitted by law, in any
judicial, governmental, or quasi-governmental suit or proceeding;
and not to request reexamination, or assist or request any third
party to request reexamination of any of the Licensed Patents, to
the extent and in jurisdictions where permitted by law.
Unless
sooner canceled or terminated as provided herein, the license
granted herein shall terminate on the expiration date of the last
expiring of the Licensed Patents.
A. If
any breach or default in respect of any of the terms of this
Agreement by either of the parties hereto shall occur, the other of
said parties shall have the right to provide written notice
specifying in detail the nature of the breach or default and if
said alleged breach or default has, in fact, occurred and is not
cured within sixty (60) days from the date of mailing of the
written notice [illegible] the other of said parties shall have the
right to terminate this Agreement upon giving an additional fifteen
(15) days notice to the defaulting party of its intent to
terminate, and this Agreement shall terminate at the end of such
notice.
B. For
purposes of this Agreement, an event of default shall occur If
(1) LICENSEE or LICENSOR fails to perform any of their
respective obligations hereunder, or (2) LICENSEE becomes
insolvent, or in financial difficulty, or the business of LICENSEE
is placed in the hands of a receiver or trustee, or an assignment
is made for the benefit of creditors of LICENSEE, if permitted by
law.
C. Certain
provisions of this Agreement necessary to carry out the intent of
the parties, including, without limitation, Sections IV, VII,
IX, XII, and XIII shall survive the termination or expiration of
this Agreement.
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VII.
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DUTIES UPON
TERMINATION
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Upon
any termination of this Agreement, LICENSEE shall:
(1) Immediately cease manufacturing and selling all Licensed
Products; and (2) make no further use of any of
LICENSOR’s rights conferred in LICENSEE by this
Agreement.
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