- 15 - hereinafter defined in Section 5) accrued as of the Date of Termination shall remain due and payable notwithstanding termination. (b) Subject to the provisions of paragraph (c) of this Section 2.04, the Exclusive License shall terminate as to the Demonstration Discs upon the occurrence of any of the following events: (i) * * * [Systems] or an assignee pursuant to the terms hereof is adjudicated a bankrupt and ceases operations; (ii) there shall be a failure to make a Royalty Payment in accordance with Section 5 hereof for a period of at least twenty (20) days after the date on which the same is due and payable; (iii) * * * [Systems] fails to complete the Funded Research Effort (as defined in the R&D Agreement) within one (1) year from the date hereof; (iv) * * * [Systems] fails to complete the development of and to offer for sale to the public at least five (5) of the courses to be included in the Core Concepts in Science and Mathematics series on or before January 1, 1987; or (v) * * * [Systems] fails to develop and maintain in good faith policies and a program to protect the confidentiality of the Demonstration Discs and the technology relating thereto, pursuant to section 8 hereof. (c) If the Exclusive License has not terminated pursuant to the preceding provisions of this Section 2.04, it shall terminate on March 31, 1994 (the “Date of Termination”). Systems did not remit to either IRC or RIC any royalties in 1984. 3. Option Agreement On or about March 19, 1984, IRC and Systems entered into an agreement under which Systems had the option to buy IRC’s assets in exchange for Systems’ stock, but only if all of certain specified conditions were met. One of these specified conditions was that Systems’ notice of election to exercise the option “shall provide for the consummation of the sale of the assets ofPage: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011