Norit To Receive $40.5 Million Settlement From ADA
August 31, 2011$33 Million to Be Paid Immediately, Followed By an Additional $7.5 Million Paid Over Three Years
Marshall, Texas, August 31, 2011 - Norit Americas Inc. ("Norit") announced today that it has accepted a settlement offer from ADA-ES, Inc. (NASDAQ: ADES) in reference to a three-person independent arbitration panel's decision, which found ADA and two former Norit employees John Rectenwald and Steve Young, liable for theft of trade secrets and breach of contract.
Under the terms of the settlement, ADA-ES will pay Norit $33,000,000 immediately, followed by an additional $7,500,000 over three years. The Arbitration Panel will also enter a Stipulated Final Award governing the administration of the running royalty previously ordered by the Panel over an eight year period. The Stipulated Final Award confirms that ADA-ES and other defendants shall pay Norit a royalty of 10.5% for three years and 7.0% for a further five years on all activated carbon sales at any existing or future facility that uses the Norit trade secrets in any material respect. Royalties earned to date will be paid immediately upon dismissal of the outstanding actions. The settlement agreement and related arbitration awards close all remaining claims and outstanding litigation. This settlement agreement compensates Norit for this theft, and requires ADA and the other defendants to maintain the confidentiality of Norit's trade secrets.
"Establishing the validity of our trade secrets, and enforcing our ownership of this information has been an important issue for Norit. These trade secrets are the result of nearly 100 years of investment, R&D efforts, manufacturing experience and hard work, and we are pleased that the panel found ADA, Rectenwald, and Young liable for theft of our trade secrets. We will continue to enforce our rights to these secrets against anyone else who would try to steal them from us," said Ron Thompson, chief executive officer of Norit.
"With this issue successfully behind us, we can continue to focus our efforts on growing our business around the world. We remain committed to maintaining our position as world's largest producer of activated carbon through ongoing innovation and using our proprietary knowhow to create superior products which are tailored to meet our customers' specific needs." said Mr. Thompson.
About Norit
Norit is the world's largest producer of activated carbon. Norit's product line includes more than 150 different grades of activated carbon produced from peat, wood, lignite coal, bituminous coal, coconut shells and olive pits. Norit also sells complete systems and offers services capabilities and technical support. Norit's activated carbon is used in a growing range of environmental, health, safety and industrial applications. Norit is a global company with facilities in seven countries, and a network of sales and service centers, business partners, and distributors serving customers in more than 150 countries around the world. For more information, please visit norit-americas.com.
Contact:
Mark Trinske
Vice President, Public Relations & Communications
Norit Americas Inc.
mtrinske@norit-americas.com
(903) 923-1071