By Maxey H.C.R. No. 127 76R9107 MDR-D HOUSE CONCURRENT RESOLUTION 1-1 WHEREAS, AFEX Corporation alleges that: 1-2 (1) on March 19, 1992, AFEX Corporation entered into 1-3 an agreement with The Texas A&M University System and two 1-4 professors employed by Texas A&M University, Dr. Mark Holtzapple 1-5 and Dr. Richard Davison; 1-6 (2) the agreement contained a representation and 1-7 warranty that The Texas A&M University System had not incorporated 1-8 or used confidential information of the Colorado State University 1-9 Research Foundation or AFEX Corporation, obtained before the date 1-10 of the agreement, into research or technologies the rights to which 1-11 had not been transferred to Colorado State University Research 1-12 Foundation or AFEX Corporation in the agreement; 1-13 (3) the agreement provided that confidential 1-14 information of AFEX Corporation would not be revealed; 1-15 (4) the agreement stated that The Texas A&M University 1-16 System was to assign certain rights in technologies, patent rights, 1-17 and patent applications it had at the time of the agreement, or 1-18 would have had at the end of the three-year agreement, to Colorado 1-19 State University Research Foundation, which would then license 1-20 those rights to AFEX Corporation; 1-21 (5) the agreement obligated The Texas A&M University 1-22 System to enter into sponsored research agreements with AFEX 1-23 Corporation under defined circumstances; 1-24 (6) both Dr. Holtzapple and Dr. Davison were to assign 2-1 their rights in the technologies, patent rights, and patent 2-2 applications directly to AFEX Corporation; 2-3 (7) Dr. Bruce Dale, while a professor at Texas A&M 2-4 University, was bound to comply with the confidentiality 2-5 requirements of the agreement, as well as confidential obligations 2-6 that arose out of his relationship with AFEX Corporation and its 2-7 affiliates; 2-8 (8) The Texas A&M University System has failed to 2-9 comply with the agreement to transfer its rights of certain 2-10 developments to Colorado State University Research Foundation or 2-11 AFEX Corporation, while using their confidential information, 2-12 technologies, patent rights, and patent information; 2-13 (9) The Texas A&M University System has breached the 2-14 agreement by disclosing and using the confidential information of 2-15 AFEX Corporation without the corporation's permission; 2-16 (10) AFEX Corporation has fulfilled its obligations 2-17 under the terms of the agreement; and 2-18 (11) AFEX Corporation has incurred damages and is 2-19 entitled to the benefits of the agreement, common law rights, and 2-20 attorney's fees and court costs; now, therefore, be it 2-21 RESOLVED by the Legislature of the State of Texas, That AFEX 2-22 Corporation is granted permission to sue the State of Texas and The 2-23 Texas A&M University System subject to Chapter 107, Civil Practice 2-24 and Remedies Code; and, be it further 2-25 RESOLVED, That the chancellor of The Texas A&M University 2-26 System be served process as provided by Section 107.002(a)(3), 2-27 Civil Practice and Remedies Code.