Exhibit
10.6
TECHNOLOGY
LICENSE AGREEMENT
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This Agreement is made the 21 st day
of July, 2005.
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Between:
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Dr. Melvin L. Prueitt, an individual residing at
161 Cascabel, Los Alamos, NM
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87544, his heirs and/or his assigns (the
“Licensor”)
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And:
Barnabus Energy, Inc., Suite 518,
304 – 8 th Ave. SW, Calgary Alberta T2P 3CZ Canada
(the “Licensee”)
ARTICLE I.
RECITALS
1.1 Licensor
has invented certain technology, which may be able to economically
collect solar energy using a novel method of non-imaging optics.
Among other uses, it can produce steam to drive a generator to
produce electrical power or produce desalinated water from seawater
or brackish water. This technology is herein referred to as
“Suncone.”
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1.2
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A U.S. patent application under the title
“Solar Power Concentrator Using Reflective Films” has
been filed for this technology.
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1.3 Licensor
and Licensee desire to enter into an exclusive license agreement
for the Licensed Technology (as defined below) to apply it to
distributed energy systems, electric power plants, saline water
desalination systems, and other applications. A separate Technical
Consulting Agreement will provide for technical support of this
activity by the Licensor. Licensee also desires to undertake to
develop the Licensed Technology further and to maintain the
Licensed Technology. Licensee also agrees to organize a program for
research, sales, marketing, advertising, promotion, and
distribution of products and devices incorporating Licensed
Technology, to arrange for manufacturing facilities, expansion into
foreign markets, and sublicenses, and to obtain the financing and
business ability and to aggressively engage in every activity
needed to produce and sell those products and devices in a timely
manner.
1.4 The
responsibilities of the Licensor under this agreement are solely
limited to providing a license to the technology, and under a
separate Technical Consulting Agreement to provide technology
development and design support. The Licensee is responsible for all
other necessary activities related to this demonstration and
commercialization effort, including but not limited to, obtaining
funds, obtaining necessary permits, design and construction
activities, facility testing and operations, materials acquisition,
marketing..
ARTICLE II.
DEFINITIONS
2.1 As
used in this Agreement the following terms shall, unless the
context otherwise requires, have the following meanings:
2.2
“Commencement Date” means the date of the
execution of this Technology License Agreement and the execution of
the Technology Consulting Agreement, i.e., the latest date of
signature by either party on both Agreements.
2.3
"Confidential Information" means any information relating to
or disclosed in the course of this Agreement which is or should be
reasonably understood to be confidential or proprietary.
"Confidential Information" does not include information: (a)
already lawfully known to the receiving party, (b) disclosed in
published materials, (c) generally known to the public, or (d)
lawfully obtained from any third party.
2.4
"Control" (including the terms "controlling," "controlled
by," and "under common control with") means the possession, direct
or indirect, of the power to direct or cause the direction of the
management and policies of Licensee or the power of the Licensee to
direct or cause the direction of the management and policies of
affiliates, subsidiaries, or sublicensees, whether through the
ownership of voting securities, by contract, or
otherwise.
2.5
"Field of Use" means the collecting of solar energy to
generate electricity, desalinate water, and all other industrial
applications.
2.6
"System" means the Suncone collector for which a U.S. Patent
has been applied and includes individual features or elements of
Suncone.
2.7
"Licensed Product" means any product or device which
incorporates any feature or element of the Licensed
Technology.
2.8
"License Term" means the period from the Commencement Date
to the earlier of: (a) twenty-five years from patent date; or (b)
the date this Agreement is terminated pursuant to Article 7 of this
Agreement.
2.9
"Licensed Technology" means Licensor's invention comprising
Suncone and the Technology as defined in Article 2.12 and any
future modifications or improvements to the Technology.
2.10 "Gross
Receipts" means gross receipts to Licensee from sales or leases
of Licensed Products, including spare parts, components and
sub-assemblies thereof, after deducting actual allowances for
returned or defective goods, less trade discounts, but before cash
discounts. “Gross Receipts” also includes gross
receipts to Licensee from the sale of commodities, such as
electricity and water, produced by plants owned by Licensee or any
entity controlling or controlled by Licensee.
2.11
“Patent Rights” shall mean any and all patents
and patent applications on Suncone including all PCT, utility,
divisional, continuation, continuation-in-part and
substitute patent applications derived
therefrom; and any and all reissues, reexaminations and extensions
thereof; and all foreign equivalents thereof.
2.12
“Technology” shall mean any patent applications,
know-how, substances, formulas, compositions, devices, apparatuses,
techniques, prototypes, models, trade secrets, methods, practices,
processes, technical plans and designs, data, blueprints, including
improvements, changes, developments, and modifications thereto,
which specifically relate to Suncone, in the Field of Use, during
the term of this Agreement.
2.13
“Territory” shall mean the entire world, for
which Licensor grants to Licensee rights for Licensed
Technology.
2.14 “
Performance Criteria” shall mean the minimum
requirements that the Licensee must perform in order to maintain
exclusive world-wide rights to the Technology.
ARTICLE III.
LICENSES
3.1
Grant of Licensed Technology . Licensor grants to
Licensee during the License Term the exclusive right and license in
the Field throughout the Territory to use Licensed Technology and
to manufacture, have manufactured, use, market, have marketed, sell
and have sold Licensed Products.
3.2
Sublicenses . Subject to the prior written consent of
Licensor, which consent shall not be unreasonably withheld, the
rights in Licensed Technology granted by Licensor to Licensee
include the right to grant sublicenses as Licensee deems prudent
and necessary to carry its rights and obligations pursuant to this
Agreement, provided, however, that the terms and conditions of any
such sublicenses shall be consistent with the terms and conditions
of this Agreement.
3.2.1 Licensee
shall provide Licensor with prompt notification of the identity and
address of each Affiliate or permitted sublicensee to which it
grants a sublicense and Licensee shall in a timely manner provide
Licensor with a copy of each sublicense agreement.
3.3
Affiliated or Related Companies . The rights in
Licensed Technology granted by Licensor to Licensee include the
right to sublicense to anyone under Licensee’s Control,
subject to the terms of this Agreement.
3.4
Exploitation of Licensed Rights . Licensee will use
its best efforts to develop and to commercially exploit the rights
granted by this Agreement, to generate the maximum royalties for
Licensor.
ARTICLE IV. TRADEMARK
PROVISIONS
4.1
Trademark License . Licensor grants to Licensee the
right to use under the common law and under the auspices and
privileges provided by any registrations
covering the same for the term, and Licensee
hereby undertakes to use, trademarks owned or obtained by Licensor,
in Licensor’s sole discretion, used in connection with the
marketing and commercial use of the Licensed Technology (“the
Licensed Marks”).
4.2
Use of Licensed Marks . Licensee shall use the proper
Licensed Marks at all times on all correspondence, proposals,
marketing, Licensed Products, and the like. When using the Licensed
Marks under this Agreement, Licensee undertakes to comply
substantially with all pertinent laws (United States and foreign)
pertaining to service marks and trademarks. This provision includes
compliance with marking requirements, including proper use of the
® and/or TM symbols with the Licensed Marks and written
acknowledgement that Licensor is the owner of the Licensed
Marks.
4.3
Prosecution of Trademark Applications . Licensee
shall assume sole responsibility for the prosecution of
applications for U.S. and foreign trademarks and service marks,
which Licensee elects to pursue in its sole discretion. Licensee
shall control the prosecution of all such applications and shall
have the exclusive right to submit any claim, or argument, or
evidence in support of allowability in the prosecution of any such
applications. Licensor agrees to cooperate with Licensee in such
prosecution of U.S. and foreign trademark and service mark
applications relating to Licensed Products. Notwithstanding the
above, Licensor in those territories or countries in which Licensee
elects not to obtain such trademarks, Licensor shall have the
option to pursue U.S. and foreign trademarks relating to the
Licensed Products for the benefit of Licensor, with the
understanding that any reasonable costs of obtaining or maintaining
such foreign trademarks shall be born solely by Licensee. Any such
trademarks shall be included in the term “Licensed
Marks.”
4.4
Third Party Trademark Infringement . If Licensee is
sued or threatened with suit by a third party on account of making,
using, selling, leasing or otherwise transferring Licensed Products
or using Licensed Marks, Licensee shall promptly advise Licensor in
writing of the existence of the suit or any threats of such suit.
The parties shall then discuss and prepare a strategy and course of
action regarding such suit or threatened suit and cooperate with
one another with respect to the action to be taken, provided that
Licensee shall be solely responsible for providing its own defense,
at its own expense. If the action to be taken involves either the
taking of a license under the third party proprietary rights in
question by Licensee and/or the defense of a trademark infringement
suite by Licensee, Licensee agrees to consult with and keep
Licensor informed of proceedings and proposed actions regarding the
conflict.
ARTICLE V.
REPRESENTATIONS
5.1
Representations and Disclaimers by Licensor .
Licensor represents that the following representations are true
with respect to Licensed Technology.
5.1.1 To the best
of his knowledge, Licensor owns the exclusive right, free and clear
of all liens, claims and restrictions of third parties, to use the
Licensed Technology
without infringing upon or otherwise acting
adversely to any right or claimed right of others and to bring
actions for the infringement of Licensed Technology.
5.1.2 To the best
knowledge of Licensor, there is no pending or threatened claim or
litigation against Licensor contesting Licensor's rights in and to
the Licensed Technology nor does there exist any basis for such
claim or litigation, nor has Licensor received any notice that any
right of Licensor to Licensed Technology conflicts with the
asserted rights of others.
5.1.3 Licensor
hereby disclaims and shall have no liability for any damages,
refund of royalties or any other sums received or for any other
claims, damages, fees, costs, attorneys fees or expenses resulting
from the non-issuance or limited issuance of the Patent Rights
contemplated under this Agreement. Licensor does not make any
representation whatsoever regarding the probability or likelihood
of such issuance, non-issuance or limited issuance of the Patent
Rights contemplated under this Agreement.
5.1.4 Licensor
makes no representation or warranty whatsoever and hereby disclaims
the same, regarding whether or not a commercially viable
technology, system or device – or a successful commercial
enterprise—will ever be developed or occur based upon or
incorporating the Licensed Technology.
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5.2
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Representations by Licensee.
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5.2.1
Licensee hereby warrants and represents : (1) that it
is capable of providing or obtaining the funding required pursuant
to this Agreement; (2) that it is duly authorized to do business in
the United States and elsewhere as may be required of it under the
Agreement; (3) that it has no outstanding lawsuits, liens or other
claims pending against it; (4) that, only subject to
Licensor’s prior written approval and in Licensor’s
sole discretion, may Licensee, its affiliates, sublicensees,
contractors, employees or any entity or person controlled by
Licensee allow, through a negotiated contract for funding, the
License rights, the Patent Rights, Licensed Technology and any
other intellectual property associated with the performance of this
agreement to be encumbered, used as collateral, or be subject to a
security interest. The Parties hereby acknowledge and agree that
any action by the Licensee in violation of the foregoing section
5.2.1(4) shall be void ab initio, and that this agreement may be
terminated immediately upon notice by Licensor upon such
event.
ARTICLE VI.
CONFIDENTIALITY
6.1.1 During and after the
term of this Agreement, Licensee and Licensor will keep
confidential and not disclose to its employees, vendors, customers
or others all Confidential Information disclosed to Licensee by
Licensor or to Licensor by Licensee under this Agreement except
that, on a need to know basis, Licensee and Licensor may
disclose Confidential Information