Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-04065/USCOURTS-cand-3_06-cv-04065-11/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

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SF/7674948.1 

 Stipulation And [Proposed] Order Regarding 

Confirmatory Discovery Materials

(06-4065 CRB) 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA – SAN FRANCISCO DIVISION 

IN RE KLA-TENCOR CORPORATION 

SECURITIES LITIGATION 

Master Case No. C 06-4065 CRB 

CLASS ACTION

CONFIDENTIALITY STIPULATION AND 

[PROPOSED] ORDER REGARDING 

CONFIRMATORY DISCOVERY 

MATERIALS 

The KLA Pension Fund Group, comprised of the Police and Fire Retirement System of 

the City of Detroit (“PFRS”), the Louisiana Municipal Police Employees’ Retirement System 

(“MPERS”), and the City of Philadelphia Board of Pensions and Retirement (“Philadelphia”) 

(collectively, “Lead Plaintiffs”), by and through their counsel Berman DeValerio Pease Tabacco 

Burt & Pucillo; Kohn, Swift & Graf, P.C.; Berger & Montague, P.C.; and Trujillo Rodriguez & 

Richards LLC as Co-Lead Counsel (collectively, “Lead Counsel” or “Plaintiffs’ Lead Counsel”), 

and KLA Corporation (“KLA”), by and through their counsel Morgan, Lewis & Bockius LLP 

(collectively, “KLA counsel”), hereby stipulate and agree, pursuant to Federal Rule of Civil 

Procedure 26(c), to this Confidentiality Agreement and Order (“Agreement”) in In re KLATencor Corporation Securities Litigation, Case No. C 06-4065 (“Litigation”) pending in the 

Case 3:06-cv-04065-CRB Document 194 Filed 03/07/08 Page 1 of 7
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2 Stipulation And [Proposed] Order Regarding 

Confirmatory Discovery Materials

(06-4065 CRB) 

S

United States District Court for the Northern District of California (the “Court”). 

Lead Plaintiffs, through Plaintiffs’ Lead Counsel, and KLA, through KLA counsel, 

reached an agreement in principle for the settlement of the Litigation, on the terms set forth in a 

Memorandum of Understanding signed on January 4, 2008 (the “MOU”); the proposed settlement 

is subject to Court approval. 

In light of both the MOU, which outlines the general terms of the proposed settlement and 

is intended to serve as the basis for a Stipulation of Settlement and accompanying papers 

(collectively, the “Stipulation of Settlement”), and the Stipulation of Settlement currently being 

drafted, Lead Plaintiffs and Plaintiffs’ Lead Counsel and KLA and KLA counsel have agreed that 

certain materials shall be produced as confirmatory discovery solely for the purpose of evaluating 

the settlement value of claims and potential claims against the Defendants in the Litigation. KLA 

contends that all materials produced in this action as part of this confirmatory discovery are 

confidential and proprietary in nature requiring protection and limitation as to use: 

IT IS HEREBY AGREED: 

1. Confirmatory Discovery Material. All discovery documents previously 

produced in connection with the Litigation settlement discussions shall be considered 

Confirmatory Discovery Material. Documents produced by KLA to Lead Plaintiffs hereafter in 

connection with Lead Plaintiffs’ confirmatory discovery requests shall be considered 

Confirmatory Discovery Material. Additionally, the following shall also be considered 

Confirmatory Discovery (1) a list of all stock option grants KLA determined through its 

restatement had incorrect measurement dates, were retroactively priced, or otherwise improperly 

granted, and (2) a proffer of evidence as to the awareness, if any, of management or KLA’s board 

members of these acts or practices. Confirmatory Discovery Material shall also include any 

information copied or extracted from such documents, as well as copies, excerpts, summaries, or 

compilations thereof. 

2. Use of Confirmatory Discovery Material. Except as set forth in Paragraph 9 

below, all Confirmatory Discovery Material described in Paragraph 1 above, and any information 

Case 3:06-cv-04065-CRB Document 194 Filed 03/07/08 Page 2 of 7
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3 Stipulation And [Proposed] Order Regarding 

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(06-4065 CRB) 

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contained therein or derived therefrom, shall be used only in this action and no other litigation or 

proceeding; shall be used solely for the purpose of evaluating the settlement value of claims and 

potential claims against the Defendants in the Litigation and the accuracy of any representations 

made in connection with the settlement, and for no other purpose; and shall not be disclosed to 

anyone, except counsel in this action, non-testifying consultants in this action who are bound to 

preserve the confidentiality of such materials, or Jonathan B. Marks of MarksADR, the mediator 

jointly designated by Lead Plaintiffs and KLA, provided that nothing herein shall preclude Lead 

Counsel from disclosing Confirmatory Discovery Material or its contents to any Lead Plaintiff, 

subject to such Lead Plaintiff’s agreement in writing to be bound by this Stipulation. 

Confirmatory Discovery Material may not be used to draft an amended complaint, pleading, or 

other court filing or for any purpose other than evaluating the settlement value of claims and 

potential claims against the Defendants and the accuracy of representations made in connection 

with the settlement in the Class Action Litigation. No Confirmatory Discovery Material may be 

filed with the Court or attached as exhibits to any complaint or form the basis of any complaint. 

Notwithstanding anything to the contrary contained herein, Confirmatory Discovery Material may 

be disclosed to the Court in camera, if necessary to support the proposed settlement, the plan of 

allocation or the fee application of Lead Counsel. 

3. Return and/or Destruction of Confirmatory Discovery Material. Within thirty 

(30) days after the settlement agreement has been approved by the Court and the Effective Date 

has occurred and all matters relating to the plan of allocation, the settlement, and fees and 

expenses are finally resolved, all Confirmatory Discovery Material and copies thereof, including 

Confirmatory Discovery Material in the hands of non-testifying consultants, shall either be 

returned to counsel of record for the producing party or destroyed. All Plaintiffs’ Lead Counsel’s 

and Lead Plaintiffs’ non-testifying consultants’ internal work product that contain Confirmatory 

Discovery Material, including copies, excerpts, summaries, or compilations thereof, shall be 

destroyed, or the Confidential Confirmatory Discovery Material deleted therefrom. Plaintiffs’ 

Lead Counsel shall certify in writing within (30) days after the settlement agreement has been 

Case 3:06-cv-04065-CRB Document 194 Filed 03/07/08 Page 3 of 7
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approved by the Court and the Effective Date has occurred and all matters relating to the plan of 

allocation, the settlement, and fees and expenses are finally resolved that such documents have 

been returned or destroyed, or the Confidential Confirmatory Discovery Material deleted 

therefrom. 

4. No Waiver of Privileges or Protections from Disclosure. KLA and Lead 

Plaintiffs agree that the Confirmatory Discovery Material includes voluminous electronic data, 

collected pursuant to various search terms applied to numerous custodians of data. All parties 

acknowledge that, while KLA is making appropriate effort to identify and withhold from 

production any documents that KLA believes are privileged or otherwise protected from 

disclosure, given the large volume and nature of the material being exchanged and the time-frame 

in which it is being produced, there is a possibility that privileged or otherwise protected material 

may be produced inadvertently. Accordingly, in order to facilitate the production of 

Confirmatory Discovery Material and in furtherance of the parties’ joint interests in connection 

with the Stipulation of Settlement, Lead Plaintiffs and KLA understand and agree that, to the 

extent that the Confirmatory Discovery Material may include materials subject to the attorneyclient privilege, work product doctrine or other applicable privilege or protection from disclosure, 

the production of such Confirmatory Discovery Material is not intended to, and shall not, waive 

or diminish in any way the confidentiality of such material or its continued protection under the 

attorney-client privilege, work product doctrine or any other applicable privilege or protection 

from disclosure. The parties further agree that, if KLA at any time notifies Lead Plaintiffs that 

any Confirmatory Discovery Material is subject to a claim of privilege or other protection from 

disclosure, or if Lead Plaintiffs discover that such material has been inadvertently produced, Lead 

Plaintiffs shall return the specified information, testimony, or documents and any copies they 

have, to KLA within five (5) business days of receipt of such notice or discovery and shall not use 

or disclose such items for any purpose. Additionally, the parties agree that any failure by KLA 

either to provide notice to Plaintiffs’ Lead Counsel that particular Confirmatory Discovery 

Material is subject to a claim of privilege or other protection from disclosure or to request the 

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5 Stipulation And [Proposed] Order Regarding 

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(06-4065 CRB) 

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return of such Confirmatory Discovery Material will not waive the claim of privilege or other 

protection from disclosure as to that Confirmatory Discovery Material. 

5. Information Not Subject to the Terms of this Agreement. This Agreement has 

no effect upon, and shall not apply to, a party’s use or disclosure of its own privileged or 

otherwise protected information for any purpose. Nothing contained herein shall impose any 

restrictions on the use or disclosure by a party of documents, information or material obtained 

lawfully by such party independently of this Agreement. 

6. Entire Agreement. This Agreement contains the entire agreement between Lead 

Plaintiffs and KLA regarding its subject matter. 

7. Execution. This Agreement may be signed in counterparts, each of which shall be 

deemed an original but all of which shall be deemed to constitute a single instrument. 

8. Jurisdiction. All persons who have access to information or material produced 

according to this Agreement acknowledge that they are bound by this Agreement and submit to 

the jurisdiction of this Court for purposes of enforcing this Agreement. 

9. Survival. Final termination of this proceeding shall not terminate the limitations 

on use and disclosure imposed by this Agreement, which shall remain in effect until the parties 

agree otherwise or the Court otherwise directs provided, however, that nothing herein limits Lead 

Plaintiffs’ ability to use any designated Confirmatory Discovery Material that is subsequently and 

independently produced in discovery in later proceedings. 

10. Preservation of Discovery and Termination Provision. In the event that the 

settlement of the Action is not approved or is otherwise terminated in accordance with the MOU 

or Stipulation of Settlement, nothing in this Stipulation shall preclude Lead Counsel from 

hereafter seeking any documents or information from defendants, or preclude defendants from 

objecting to any request by Lead Counsel for such documents or information, in accordance with 

the Federal Rules of Civil Procedure and the Private Securities Litigation Reform Act of 1995. 

Nothing in this Stipulation shall affect the 

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6 Stipulation And [Proposed] Order Regarding 

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preservation obligations of any party under Section 21D(b)(3)(C) of the Exchange Act, 15 U.S.C. 

§78u-4(b)(3)(C). 

IT IS SO STIPULATED: 

DATED March 6, 2008 MORGAN, LEWIS & BOCKIUS LLP 

 

 By: /s/ 

 Joseph E. Floren 

Attorneys for Defendants KLA-Tencor 

Corporation, Edward W. Barnholt, H. Raymond 

Bingham, Robert J. Boelke, Robert T. Bond, 

Richard J. Elkus, Jr., Jeffrey L. Hall, Stephen P. 

Kaufman, John H. Kispert, Michael E. Marks, 

Dean O. Morton, Lida Urbanek and Richard P. 

Wallace

DATED: March 6, 2008 BERMAN DEVALERIO PEASE 

 TABACCO BURT & PUCILLO 

 JOSEPH J. TABACCO, JR.

 CHRISTOPHER T. HEFFELFINGER 

 NICOLE LAVALLEE 

 LESLEY HALE 

 

 By: /s/ 

 Nicole Lavallee 

 

 425 California Street, Suite 2100 

 San Francisco, CA 94104-2205 

 Telephone: (415) 433-3200 

 Facsimile: (415) 433-6382 

 Plaintiffs’ Executive Committee and Liaison 

 Counsel 

 KOHN, SWIFT & GRAF, P.C. 

 Denis F. Sheils 

Joseph C. Kohn 

 William E. Hoese 

 One South Broad Street, Suite 2100 

 Philadelphia, PA 19107 

 Telephone: (215) 238-1700 

 Facsimile: (215) 238-1968 

 Email: dsheils@kohnswift.com 

 Email: jkohn@kohnswift.com 

 Email: whoese@kohnswift.com 

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7 Stipulation And [Proposed] Order Regarding 

Confirmatory Discovery Materials

(06-4065 CRB) 

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BERGER & MONTAGUE, P.C. 

Sherrie R. Savett 

Gary E. Cantor 

Douglas M. Risen 

1622 Locust Street 

Philadelphia, PA 19103 

Telephone: (215) 875-3000 

Facsimile: (215) 875-4604 

Email: ssavett@bm.net

Email: drisen@bm.net

TRUJILLO RODRIGUEZ & RICHARDS LLC 

Kenneth I. Trujillo 

Ira Neil Richards 

Kathryn C. Harr 

1717 Arch Street, Suite 3838 

Philadelphia, PA 19103 

Telephone: (215) 731-9004 

Facsimile: (215) 731-9044 

Email: KITrujillo@trrlaw.com

Email: ira@trrlaw.com 

Email: kharr@trrlaw.com 

Plaintiffs’ Executive Committee 

IT IS SO ORDERED: 

Dated: _____________________ THE HONORABLE CHARLES R. BREYER 

JUDGE OF THE UNITED STATES 

DISTRICT COURT 

March 7, 2008

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

Judge Charles R. Breyer

Case 3:06-cv-04065-CRB Document 194 Filed 03/07/08 Page 7 of 7