Nano-Proprietary, Inc. announced
that its subsidiary, Applied Nanotech, Inc., has agreed
to solidify its relationship with Mitsui & Co., Ltd. The
parties agreed to extend the option agreement and continue negotiations
toward the framework of a master practical relationship and agreement.
This represents the next step in the development of ANI's relationship
with Mitsui.
Under the proposed structure, Mitsui will hold a contingent
license, locking in the terms under which Mitsui will be able to extend
sublicenses to its prospects. Mitsui has paid a fee to protect their
position as the exclusive master license holder by continuing the
current option agreement until July 31, 2008. At that time, the
existing option agreement will terminate. During the next three months
the companies intend to jointly expedite the discussions with potential
sublicensees already identified by Mitsui. The proposed master
practical agreement may include an exclusive agency agreement and/or an
exclusive license agreement. The parties intend to continuously monitor
the sublicensing process and adjust their understanding and activities
accordingly.
"I am pleased that this relationship is moving in the
direction of Mitsui becoming our exclusive licensee for lighting
products with several sublicense relationships," said Thomas F. Bijou,
Chairman and Chief Executive Officer of Nano-Proprietary, Inc.