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.