PATENT SECURITY AGREEMENT
THIS PATENT SECURITY AGREEMENT is made on the 27th day of November,
1996, by FIBERCORE, INC., a Nevada corporation, having its chief executive
office at 174 Charlton Road, P.O. Box 206, Sturbridge, MA 01566 ("Grantor"), in
favor of AMP INCORPORATED, a Pennsylvania corporation, having its chief
executive office at 470 Friendship Road, M/S 176-034, Harrisburg, PA 17111
("Secured Party").
WHEREAS, pursuant to that certain Convertible Debenture Purchase
Agreement dated April 17, 1995 (as the same may be amended, modified or
supplemented from time to time, the "Purchase Agreement") by and between Grantor
and Secured Party, Secured Party has agreed to make certain advances of money
and to extend certain financial accommodations to Grantor in the amounts and
manner set forth in the Purchase Agreement (collectively, the "Debt"). Secured
Party is willing to extend the Debt to Grantor, but only upon the condition,
among others, that Grantor shall assign to Secured Party, for the benefit of
Secured Party, certain patent rights to secure the obligations of Grantor under
the Purchase Agreement.
WHEREAS, pursuant to the terms of the Collateral Assignment, Patent
Mortgage and Security Agreement dated as of April 17, 1995 (the "Security
Agreement") which is hereby incorporated by reference, Grantor has granted to
Grantor a security interest in all of Grantor's entire and exclusive right,
title and interest, whether presently existing or hereafter arising or acquired,
in, to and under all of the Grantor's Collateral (as defined in the Purchase
Agreement).
NOW, THEREFORE, for good and valuable consideration, receipt of which
is hereby acknowledged, and intending to be legally bound, as collateral
security for the prompt and complete payment when due of its obligations under
the Loan Agreement and the Notes, Grantor hereby represents, warrants, covenants
and agrees as follows:
1. Unless otherwise defined herein, the terms defined in the
Purchase Agreement are used herein as therein defined.
2. To secure its obligations under the Purchase Agreement,
Grantor does hereby mortgage and pledge to Secured Party, and
grant to Secured Party a security interest in, all of
Grantor's right, title and interest in, to and under its
Patents, Patent Licenses whether now or hereafter owned and
including without limitation each Patent and Patent
application listed on Schedules A, B, C and D hereto,
including without limitation all proceeds thereof (such as, by
way of example but not by way of limitation, license royalties
and proceeds of infringement suits), the right to sue for
past, present and future infringements, all rights
corresponding thereto throughout the world and all re-issues,
divisions, continuations, renewals, extensions and
continuations-in-part thereof (the "Collateral"). The security
interest granted hereby shall be and remain a first and prior
security interest in all of the Collateral.
1.
This security interest is granted in conjunction with the security
interest granted to Secured Party under the Security Agreement. The rights and
remedies of Secured Party with respect to the security interest granted hereby
are in addition to those set forth in the Security Agreement and the other Loan
Documents, and those which are now or hereafter available to Secured Party as a
matter of law or equity. Each right, power and remedy of Secured Party provided
for herein or in the Security Agreement or the Purchase Agreement or any of the
other Loan Documents, or now or hereafter existing at law or in equity shall be
cumulative and concurrent and shall be in addition to every right, power or
remedy provided for herein and the exercise by Secured Party of any one or more
of the rights, powers or remedies provided for in this Patent Security
Agreement, the Security Agreement or the Purchase Agreement or any of the other
Loan Documents, or now or hereafter existing at law or in equity, shall not
preclude the simultaneous or later exercise by any person, including Secured
Party, of any or all other rights, powers or remedies.
Following the termination of the Purchase Agreement in accordance with
its terms and full payment and satisfaction under the Loan Documents, the
security interest in Patents, Patent Licenses, Patent applications and any and
all financing statements filed on behalf of Secured Party will be terminated,
and Secured Party will execute such instruments as may be reasonably requested
to evidence such termination, which shall be without warranty by or recourse to
Secured Party, and shall be at the expense of Grantor.
2.
IN WITNESS WHEREOF, the parties have caused this Patent Security
Agreement to be duly executed by its officers thereunto duly authorized as of
the date first written above.
GRANTOR FIBERCORE, INC.
By: /s/ Mohd Aslami
---------------------
Name: Mohd Aslami
-------------------
Title: Chairman and CEO
------------------
Accepted and acknowledged by:
AMP INCORPORATED, AS SECURED PARTY
By: /s/ James E. Marley
---------------------------
Name: James E. Marley
--------------------------
Title: Chairman of the Board
-------------------------
3.
SCHEDULE A
ISSUED U.S. PATENTS
Patent Title Assignment Owner of Author/ Issue Comments
------ ----- ---------- --------- ------- ----- --------
No. History Record Inventor Date
--- ------- ------ -------- ----
4596589 Method for producing Reassignment: Fibercore, Inc. Perry, Gregory 6/24/86
single mode fiber 11-08-93 (signed)
preform 10-11-94 (recorded)
Assignor: Perry G.
Assignee: Fibercore
04-17-95 (signed)
04-24-95 (recorded)
Assignor: Fibercore
Assignee: AMP Inc.
4,480,251 Apparatus to monitor Norscan Instr Ltd to Automated Light McNaughton, 10/30/84
electrical cables, Automated Light Technologies, Inc. John P.
including splice joints Technologies, Inc. to Domenco,
and the like, for the Connecticut Innovations Wayne E.
ingress of moisture Incorporated and Vokey, David E
Connecticut Development
Authority
5,077,526 Cable Failure Detection Automated Light Automated Light Vokey, David E. 12/31/91
System Technologies, Inc. Technologies, Inc. Sontag, Kenneth
4,947,469 Resistive Fault Location Automated Light Automated Light Vokey, David E. 08/07/90
Method and Device for Technologies, Inc. to Technologies, Inc. Sontag, Kenneth
use on electrical cables Connecticut Innovations Chamberlain,
Incorporated and John C.
Connecticut Development LaVallee,
Authority Ronald L.
1.
Patent Title Assignment Owner of Author/ Issue Comments
------ ----- ---------- --------- ------- ----- --------
No. History Record Inventor Date
--- ------- ------ -------- -----
5,369,518 Optical Communication Automated Light Automated Light Aslami, Mohd 11/29/94
System and Method; Technolgoies Inc. Technologies, Inc. LaVallee,
Electrical Power Ronald L.
Transmission thereof
4,480,251 Apparatus to monitor Norscan Instr. Ltd. Automated Light Mcnaughton, 04/22/80
electrical cables Technologies, Inc. John
Domenco,
Wayne
Vokey, David
5410929 Devise for recycling a Fibercore Recycle Fibercore Recycle Wallace, Marcus 05/02/95
- ------- tube Systems, Inc. Systems, Inc.
2.
SCHEDULE B
U.S. PATENT APPLICATIONS
Patent Date Title Assignment History Owner of Author/
------ ---- ----- ------------------ -------- -------
Pending No. Record Inventor
- ----------- ------ --------
0004999 12/02/94 FABR of OPT Fiber Preform Fibercore, Mohd A.
utilizing rod/tape concept Inc. Aslami
0005999 Being Manufacturing process for high Fibercore, Mohd A.
researched quality vycor tubing for application Inc. Aslami
in producing optical fiber preforms
0004228 12/01/95 Method and Apparatus for Fibercore, Mohd A.
Appl # producing optical fiber preform Inc. Aslami
PCT/US95/
15685-
European
Conv.
=================== ==================== ========================================== =======================================
1.
SCHEDULE C
ISSUED FOREIGN PATENTS
Patent No. Country Title Assignment History Owner of Author/ Issue Comments
- ---------- ------- ----- ------------------ -------- ------- ----- --------
Record Inventor Date
------ -------- ----
GB2082406 United Apparatus to Domenco, Wayne Domenco, 06/13/84 Patent
Kingdom monitor electrical David Wayne ceased
cables, including McNaughton, John David through
splice joints and the Paul McNaught non-
like, for the ingress Vokey, David Ernest on, John payment
of moisture Paul
Vokey,
David
Ernest
CA1168707 Canada Apparatus to Norscan Instr. Ltd Domenco, 06/05/84
- ---------
monitor electrical Wayne
cables David
McNaught
on, John
Paul
Vokey,
David
Ernest
EP336036 Europe Cable Failure Vokey, David Ernest Vokey, 12/15/93
Detection System Sontag, Kenneth N. David
Ernest
1.
Patent No. Country Title Assignment History Owner of Author/ Issue Comments
- ---------- ------- ----- ------------------ -------- ------- ----- --------
Record Inventor Date
------ -------- ----
AT98780 Austria Cable Failure Vokey, David Ernest Vokey, 01/15/94
Detection System Sontag, Kenneth N. David
Ernest
Sontag,
Kenneth
N.
CA1317355 Canada Cable Failure Norscan Instr. Ltd. Vokey, 05/04/93
- ---------- Detection System David
Ernest
Sontag,
Kenneth
N.
DE3886380 Germany Cable Failure Vokey, David Ernest Vokey, 01/27/94
- --------- Detection System Sontag, Kenneth N. David
Ernest
Sontag,
Kenneth
N.
ES2058298 Spain Cable Failure Vokey, David Ernest Vokey, 11/01/94
- --------- Detection System Sontag, Kenneth N. David
Ernest
Sontag,
Kenneth
N.
EP327191 Europe Resistive Fault Automated Light Vokey, 05/10/95 Patent
- -------- Location Method Technologies David ceased
and use on Ernest through
electrical cables Chamberla non-
in, Jim C. payment
LaVallee,
Ronald
Sontag,
Kenneth
2.
Patent No. Country Title Assignment History Owner of Author/ Issue Comments
- ---------- ------- ----- ------------------ -------- ------- ----- --------
Record Inventor Date
AT122468 Austria Resistive Fault Automated Light Vokey, 05/15/95
-------- Location Method Technologies David
Ernest
Chamberla
in, Jim C.
LaVallee,
Ronald
Sontag,
Kenneth
CA1283704 Canada Resistive Fault Vokey,David E. Vokey, 04/30/91
- --------- Location Method David
Ernest
Chamberla
in, Jim C.
LaVallee,
Ronald
Sontag,
Kenneth
DE68922503 Germany Resistive Fault Automated Light Vokey, 06/14/95
- ---------- Location Method Technologies, Inc. David
Ernest
Chamberla
in, Jim C.
LaVallee,
Ronald
Sontag,
Kenneth
3.
Patent No. Country Title Assignment History Owner of Author/ Issue Comments
- ---------- ------- ----- ------------------ -------- ------- ----- --------
Record Inventor Date
------ -------- ----
GB8800081 United Resistive Fault Automated Light Vokey, 02/10/88
- --------- Kingdom Location Method Technologies, Inc. David
Ernest
Chamberla
in, Jim C.
LaVallee,
Ronald
Sontag,
Kenneth
AU9458523 Australia Optical Automated Light Aslami, 07/19/94
- --------- Communication Technologies I Mohd
System and Method LaVallee,
Ronald
WO9415415 World I.P. Optical Automated Light Aslami, 07/07/94
- --------- Organization Communication Technologies I Mohd
System and Method LaVallee,
Ronald
WO9616911 World I.P. Making a single Fibercore Inc. Aslami, 06/06/96 Patent
- --------- Organization mode fibre preform M.A. ceased
Perry, through
G.A. non-
payment
EP716047 Europe Making a single Fibercore, Inc. Aslami, 10/09/96
--------- mode fibre preform M.A.
Perry,
G.A.
AU9645957 Austria Making a single Fibercore, Inc. Aslami, 06/19/96
- ---------- mode fibre preform M.A.
Perry,
G.A.
=============================== ===================== ===================== ========= =========== ============ ==================
4.
SCHEDULE D
FOREIGN PATENT APPLICATIONS
Patent Pending Date Country Title Assignment Owner of Author/
- -------------- ---- ------- ----- ---------- -------- -------
No. History Record Inventor
--- ------- ------ --------
236767/89 Japan Resistive Fault Location
---------- Method
9616911 India Method and Apparatus
------- for producing optical
fiber preform
716047 Europe Method and Apparatus
------ for producing optical
fiber preform
0004056 12/07/95 India Method and Apparatus Mohd. A.
Application # for producing optical Aslami
1616/MAS/95 fiber preforms
0336036 12/15/93 Spain Cable Failure Detection
United Kingdom System
Italy
9645957 AU Method and Apparatus
-------- for producing optical
fiber preforms.
- ---------------------------- ---------------------- ------------------------- ------------- --------------- -------------------
1.