PATENT LICENSE
AGREEMENT
THIS
PATENT LICENSE AGREEMENT (hereinafter "Agreement") is made
effective September 26, 2005 (hereinafter "Effective Date"), by and
between INTERGRAPH HARDWARE TECHNOLOGIES COMPANY, a Nevada
Corporation (hereinafter "IHTC") and FUJITSU LIMITED, a Japan
corporation (hereinafter "Fujitsu").
WHEREAS,
IHTC has patented technology that it wishes to promote.
WHEREAS,
Fujitsu desires to use such technology.
NOW,
THEREFORE, in consideration of the premises and mutual covenants
herein contained, and for good and valuable consideration, IHTC and
Fujitsu agree as follows.
|
Section 1.
|
Definitions
|
|
1.1
|
" Affiliate " means any entity controlling (directly or
indirectly), controlled by (directly or indirectly) or under common
control with (directly or indirectly) a Party. For
purposes of this definition, an entity will be deemed to control
another entity if such entity beneficially owns (within the meaning
of Rule 13d-3 promulgated under the Securities Exchange Act of
1934, as amended), directly or indirectly through one or more
subsidiaries: a majority of the outstanding voting securities
of such entity; or, if there are no outstanding shares on
securities, a majority interest in the right to make the decisions
for such entity. For avoidance of doubt, Affiliate shall
include, but not be limited to, any entity which at any time during
the term of this Agreement: is the Parent of a Party; a
Subsidiary of a Party; or a Subsidiary of a Parent (sibling).
Notwithstanding the foregoing, the term "Affiliate"
hereunder does not include Fujitsu Siemens Computers (Holding) BV
("FSC").
|
|
1.2
|
" IHTC Patents " means (i) all U.S. patents issued for or
claiming priority to or the benefit of the filing date of U.S.
patent application serial numbers 06/704,497; 06/704,499;
06/704,568; 06/794,248, together with all divisionals,
continuations, continuations-in-part, extensions of said
applications (including U.S. Patents 4,860,192, 4,884,197,
4,899,275, 4,933,835 and 5,091,846) and (ii) all their counterparts
outside the United States (including but not limited to the
following European and Japanese patents, respectively: EP0196244
and EP0732656, and JP2083650), and (iii) any patent reissuing,
divided, granted on reexamination or extended on any of the
aforesaid patents.
|
|
1.3
|
" Licensed Product" means any system within the scope of
the claims of the IHTC Patents, including but not limited to those
classes of systems identified in Appendix A.
|
|
1.4
|
" Parent " means a corporation, company, partnership, or
other entity that owns or controls more than fifty percent (50%) of
the outstanding shares or securities representing the right to vote
for the election of directors or other managing authority of a
Party, but such corporation, company, partnership, or other entity
shall be deemed to be a Parent only so long as such ownership or
control exists.
|
|
1.5
|
" Parties " means IHTC and Fujitsu.
|
|
1.6
|
" Party " means IHTC or Fujitsu as the context
dictates.
|
|
1.7
|
" Subsidiary " means any corporation, partnership or
other entity with regard to which (a) greater than fifty percent
(50%) of whose outstanding shares or securities entitled to vote
for the election of directors or similar managing authority is
directly or indirectly owned or controlled by a party hereto, or
(b) which does not have outstanding shares or securities but
greater than fifty percent (50%) of whose ownership interest
representing the right to make the decisions for such entity is,
now or hereafter, owned or controlled, directly or indirectly, by a
party hereto; provided, however, that in each case such
corporation, partnership or other entity shall be deemed to be a
Subsidiary only so long as such ownership or control exists and
exceeds fifty percent (50%). Notwithstanding the
foregoing, the term "Subsidiary" hereunder does not include
FSC.
|
|
Section 2.
|
License and Right to Obtain Licenses
|
|
2.1
|
IHTC's Intergraph Patent License to Fujitsu
|
|
|
(a)
|
IHTC hereby grants to Fujitsu and its Affiliates, a perpetual,
non-cancelable, non-exclusive, world-wide, fully paid-up license to
the IHTC Patents, including, without limitation, the right for
Fujitsu to make, have made, use, export, import, lease, offer to
sell, sell or otherwise transfer Licensed Products within the scope
of the claims of the IHTC Patents, with no right to transfer this
license or right to sublicense other than as per Section 2.2
("Extension of License to Affiliates") below. For the
avoidance of doubt, all Licensed Products made, used, imported,
leased, offered for sale, sold or otherwise transferred under this
license are themselves Licensed Products, and the license to use,
lease, export, import, sell or otherwise transfer such Licensed
Products passes to each owner, user, licensee, or transferee of
such Licensed Products.
|
|
|
(b)
|
No implied licenses are granted hereunder. Nothing
contained in this Agreement shall expressly or by implication or by
estoppel or otherwise give Fujitsu any right to license the IHTC
Patents to any third party.
|
|
|
(c)
|
Notwithstanding anything in this Agreement to the contrary, the
license in subsection (a) above shall not include the activity of
FSC manufacturing and selling any product in Europe. For the
sake of clarity, this exclusion is not intended to cover the case
where the products manufactured by FSC are sold outside Europe by Fujitsu or its Affiliates, or
subject to Section 2.6 below where products manufactured by Fujitsu
or its Affiliates are sold in Europe by FSC
|
|
2.2
|
Extension of License(s) to Affiliates
|
|
|
(a)
|
The license(s) granted herein includes the right of Fujitsu and
IHTC to sublicense their respective Affiliates. For an
Affiliate to be sublicensed hereunder, said Affiliate shall agree
in writing to be bound by the terms and conditions of this
Agreement as if it were named herein in the place of the Party. Any
sublicense granted to an Affiliate shall terminate on the date such
Affiliate ceases to be an Affiliate or upon termination of the
licenses granted in this Agreement, whichever occurs earlier.
|
|
2.3
|
IHTC's Right to Obtain Licenses from Fujitsu
|
|
|
(a)
|
Fujitsu hereby grants to IHTC the right to obtain, at any time
during the term of this Agreement after which a "Trigger Event" (as
defined below) has occurred, a non-cancelable, non-exclusive,
world-wide license for itself and its Affiliates, for a reasonable
field of use within the fields in which IHTC and its Affiliates,
operate at the Effective Date of this Agreement, under five patents
(or applications therefore, and including foreign counterparts,
divisionals, reissues or continuation patents, but not including
design patents or registrations related to product design) owned by
or under which Fujitsu or its Affiliates have the right to grant
licenses of the scope provided herein without any payment to third
party, at any time during such term, upon terms and conditions,
including royalty rates, no less favorable than those granted to
Fujitsu herein or in any amendment hereto, provided that:
|
|
|
(i)
|
Fujitsu shall have the right to propose alternative patents to
those selected by IHTC, except that IHTC will be permitted to
include in its five selected patents any patent that is the subject
of a Trigger Event;
|
|
|
(ii)
|
the parties agree to negotiate in good faith to reach mutually
agreeable license terms reflecting the above conditions; and
|
|
|
(iii)
|
in the event the parties are unable to reach a mutually
satisfactory agreement within ninety (90) days of such a request by
IHTC (or such longer time as the parties agree to), at the request
of either party the terms of such license shall be determined by
binding arbitration before a neutral arbitrator acting under the
auspices of the American Arbitration Association.
|
|
|
(b)
|
A "Trigger Event" shall be the filing of a lawsuit or legal
proceeding against IHTC (or any of its Affiliates) by Fujitsu (or
any of its Affiliates) alleging patent infringement of any patent
owned by Fujitsu or its Affiliates, with the following
exception: A "Trigger Event" shall not have occurred in the
event the filing of such a lawsuit or legal proceeding by Fujitsu
(or any of its Affiliates) is in response to a lawsuit or legal
proceeding initially filed by IHTC (or any of its Affiliates)
against Fujitsu or its Affiliates alleging infringement of any
patent owned by IHTC or its Affiliates.
|
|
|
(c)
|
The license(s) provided in this Section 2.3 shall be effective
for the full term of this Agreement and shall expire on the last to
expire of the IHTC Patents licensed to Fujitsu under this
Agreement.
|
|
2.4
|
Acquisitions, Transfers, and Spin-Offs
|
|
|
(a)
|
If, after the Effective Date, a Party (the "Acquired Party") is
acquired by a third party:
|
|
|
(i)
|
The Acquired Party shall promptly give notice of such
acquisition to the other Party hereto; and
|
|
|
(ii)
|
The license granted to Acquired Party and all sublicenses (if
any) granted to the Acquired Party's remaining Affiliates shall
automatically become limited to only those products manufactured
and marketed by said Acquired Party prior to said acquisition and
any commercially reasonable improvements and extensions
thereto.
|
|
|
(b)
|
If, after the Effective Date, a Party or any of its Affiliates
(the "Acquiring Party") either acquires an entity or acquires
substantially all of the assets from an entity, and said entity is,
immediately prior to the date of acquisition, licensed by the other
Party hereto (the "Licensor") under one or more patents that are
also licensed under this Agreement (the "Licensed Patents") through
an existing agreement pursuant to which royalties or other payments
are made by said entity to Licensor, then the license and other
rights granted herein to the Acquiring Party with respect to said
Licensed Patents shall apply to products manufactured by said
entity or through the use of said assets, provided that such
royalties or other payments shall continue to be made by the
Acquiring Party or said entity to the Licensor with respect to such
products notwithstanding that the Acquiring Party may have been
licensed for the same product(s) before the acquisition.
|
|
|
(c)
|
If, after the Effective Date, a Party (the "Transferring Party")
either transfers a product line to a third party without
transferring an Affiliate to said third party or spins-off an
Affiliate (either by disposing of it to a third party or in some
other manner reducing ownership or control so that the spun-off
entity is no longer an Affiliate), and if such transfer or spin-off
includes at least one marketable product in a product line and
tangible assets having a net value of at least twenty five million
United States dollars ($25,000,000.00), then after written request
to the other Party hereto jointly by the Transferring Party and
either such third party in the case of a transfer or such
ex-Affiliate in the case of a spin off, and where, in either case,
such request is within sixty (60) days following the transfer or
spin off, the other party hereto shall grant a royalty-free license
(under the same terms as the license granted to the Transferring
Party herein) under its Licensed Patents for the field (as such
field is defined between the Transferring Party and such third
party or ex-Affiliate) of such product line to such third party or
such ex-Affiliate, (the "Recipient") provided that:
|
|
|
(i)
|
such field shall not be defined more broadly than appropriate to
cover the particular product line being transferred or spun off,
including extensions thereto based on the same technology;
|
|
|
(ii)
|
the license granted shall be limited in the twelve (12) months
immediately following such transfer or spin off to a volume of
licensed products having an aggregate selling price equal to no
more than the aggregate selling prices of such products by said one
party in the twelve (12) months preceding such transfer or spin off
plus ten percent (10%); and shall be limited, in each of the
successive twelve-month periods following such transfer or spin
off, to a volume of licensed products having an aggregate selling
price equal to no more than the limit for the immediately preceding
twelve-month period plus ten percent (10%);
|
|
|
(iii)
|
the Recipient shall grant to such other Party a right to obtain
a license (under the same terms, conditions and restrictions as the
right granted to IHTC pursuant to section 2.3 hereof) under up to
five Reci
|
|