Document:

Exhibit 10.2

 

RESONANT INC.

 

AMENDED AND RESTATED
 2014 OMNIBUS INCENTIVE PLAN

 

Resonant Inc. (the “Company”), a Delaware corporation, hereby establishes and adopts the following Amended and Restated 2014 Omnibus Incentive Plan (the “Plan”).

 

1.                                    PURPOSE OF THE PLAN

 

The purpose of the Plan is to assist the Company and its Subsidiaries in attracting and retaining selected individuals to serve as employees, directors, consultants and/or advisors who are expected to contribute to the Company’s success and to achieve long-term objectives that will benefit stockholders of the Company through the additional incentives inherent in the Awards hereunder.

 

2.                                    DEFINITIONS

 

2.1                            “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Other Share-Based Award, Performance Award or any other right, interest or option relating to Shares or other property (including cash) granted pursuant to the provisions of the Plan.

 

2.2                            “Award Agreement” shall mean any agreement, contract or other instrument or document evidencing any Award hereunder, whether in writing or through an electronic medium.

 

2.3                            “Board” shall mean the board of directors of the Company.

 

2.4                            “Business Combination” shall have the meaning set forth in Section 11.3(c).

 

2.5                            “Change in Control” shall have the meaning set forth in Section 11.3.

 

2.6                            “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

2.7                            “Committee” shall mean the Compensation Committee of the Board or a subcommittee thereof formed by the Compensation Committee to act as the Committee hereunder.  The Committee shall consist of no fewer than two Directors, each of whom is (i) a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act, (ii) an “outside director” within the meaning of Section 162(m) of the Code, and (iii) an “independent director” for purpose of the rules of the principal U.S. national securities exchange on which the Shares are traded, to the extent required by such rules.

 

2.8                            “Company Voting Securities” shall have the meaning set forth in Section 11.3(b).

 

2.9                            “Consultant” shall mean any consultant or advisor who is a natural person and who provides services to the Company or any Subsidiary, so long as such person (i) renders bona fide services that are not in connection with the offer and sale of the Company’s securities in a capital-raising transaction, (ii) does not directly or indirectly promote or maintain a market for 

 

 

the Company’s securities and (iii) otherwise qualifies as a consultant under the applicable rules of the SEC for registration of shares of stock on a Form S-8 registration statement.

 

2.10                    “Covered Employee” shall mean an employee of the Company or its Subsidiaries who is a “covered employee” within the meaning of Section 162(m) of the Code.

 

2.11                    “Data” shall have the meaning set forth in Section 13.17.

 

2.12                    “Director” shall mean a member of the Board who is not an employee.

 

2.13                    “Dividend Equivalents” shall have the meaning set forth in Section 12.5.

 

2.14                    “Employee” shall mean any employee of the Company or any Subsidiary and any prospective employee conditioned upon, and effective not earlier than, such person becoming an employee of the Company or any Subsidiary.

 

2.15                    “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

2.16                    “Fair Market Value” shall mean, with respect to Shares as of any date, (i) the closing price of the Shares as reported on the principal U.S. national securities exchange on which the Shares are listed and traded on such date, or, if there is no closing price on that date, then on the last preceding date on which such a closing price was reported; (ii) if the Shares are not listed on any U.S. national securities exchange but are quoted in an inter-dealer quotation system on a last sale basis, the final ask price of the Shares reported on the inter-dealer quotation system for such date, or, if there is no such sale on such date, then on the last preceding date on which a sale was reported; or (iii) if the Shares are neither listed on a U.S. national securities exchange nor quoted on an inter-dealer quotation system on a last sale basis, the amount determined by the Committee to be the fair market value of the Shares as determined by the Committee in its sole discretion. The Fair Market Value of any property other than Shares shall mean the market value of such property determined by such methods or procedures as shall be established from time to time by the Committee.

 

2.17                    “Incentive Stock Option” shall mean an Option which when granted is intended to qualify as an incentive stock option for purposes of Section 422 of the Code.

 

2.18                    “Incumbent Directors” shall have the meaning set forth in Section 11.3(a).

 

2.19                    “Maximum Plan Shares” shall have the meaning set forth in Section 3.1(a).

 

2.20                    “Non-Qualifying Transaction” shall have the meaning set forth in Section 11.3(c).

 

2.21                    “Option” shall mean any right granted to a Participant under the Plan allowing such Participant to purchase Shares at such price or prices and during such period or periods as the Committee shall determine.

 

2.22                    “Other Share-Based Award” shall have the meaning set forth in Section 8.1.

 

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2.23                    “Parent Corporation” shall have the meaning set forth in Section 11.3(c).

 

2.24                    “Participant” shall mean an Employee, Director or Consultant who is selected by the Committee to receive an Award under the Plan.

 

2.25                    “Performance Award” shall mean any Award of Performance Cash, Performance Shares or Performance Units granted pursuant to Article 9.

 

2.26                    “Performance Cash” shall mean any cash incentives granted pursuant to Article 9 payable to the Participant upon the achievement of such performance goals as the Committee shall establish.

 

2.27                    “Performance Period” shall mean the period established by the Committee during which any performance goals specified by the Committee with respect to a Performance Award are to be measured.

 

2.28                    “Performance Share” shall mean any grant pursuant to Article 9 of a unit valued by reference to a designated number of Shares, which value may be paid to the Participant upon achievement of such performance goals as the Committee shall establish.

 

2.29                    “Performance Unit” shall mean any grant pursuant to Article 9 of a unit valued by reference to a designated amount of cash or property other than Shares, which value may be paid to the Participant upon achievement of such performance goals during the Performance Period as the Committee shall establish.

 

2.30                    “Permitted Assignee” shall have the meaning set forth in Section 12.3.

 

2.31                    “Restricted Stock” shall mean any Share issued with the restriction that the holder may not sell, transfer, pledge or assign such Share and with such other restrictions as the Committee, in its sole discretion, may impose, which restrictions may lapse separately or in combination at such time or times, in installments or otherwise, as the Committee may deem appropriate.

 

2.32                    “Restricted Stock Award” shall have the meaning set forth in Section 7.1.

 

2.33                    “Restricted Stock Unit” means an Award that is valued by reference to a Share, which value may be paid to the Participant in Shares or cash as determined by the Committee in its sole discretion upon the satisfaction of vesting restrictions as the Committee may establish, which restrictions may lapse separately or in combination at such time or times, in installments or otherwise, as the Committee may deem appropriate.

 

2.34                    “Restricted Stock Unit Award” shall have the meaning set forth in Section 7.1.

 

2.35                    “SEC” means the Securities and Exchange Commission.

 

2.36                    “Shares” shall mean the shares of common stock of the Company, par value $0.001 per share.

 

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2.37                    “Stock Appreciation Right” shall mean the right granted to a Participant pursuant to Article 6.

 

2.38                    “Subsidiary” shall mean any entity (other than the Company) in an unbroken chain of entities beginning with the Company if, at the relevant time each of the entities other than the last entity in the unbroken chain owns equity and/or interests possessing 50% or more of the total combined voting power of all equity in one of the other corporations in the chain.

 

2.39                    “Substitute Awards” shall mean Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted, or the right or obligation to make future awards, in each case by a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines.

 

2.40                    “Surviving Corporation” shall have the meaning set forth in Section 11.3(c).

 

2.41                    “Vesting Period” shall mean the period of time specified by the Committee during which vesting restrictions for an Award are applicable.

 

3.                                    SHARES SUBJECT TO THE PLAN

 

3.1                            Number of Shares.  (a)  Subject to adjustment as provided in Section 12.2, a total of 1,400,000 Shares shall be authorized for grant under the Plan (the “Maximum Plan Shares”).  Any Shares that are subject to Awards shall be counted against this limit as one (1) Share for every one (1) Share granted.

 

(b)                              If any Shares subject to an Award are forfeited, an Award expires or an Award is settled for cash (in whole or in part), then in each such case the Shares subject to such Award shall, to the extent of such forfeiture, expiration or cash settlement, again be available for Awards under the Plan on a one-for-one basis.  In the event that any Award granted hereunder is exercised through the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the Company, then in each such case the Shares so tendered or withheld shall again be available for Awards under the Plan on a one-for-one basis.  In addition, in the event that withholding tax liabilities arising from any Award are satisfied by the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the Company, then in each such case the Shares so tendered or withheld shall again be available for Awards under the Plan on a one-for-one basis.

 

(c)                               Substitute Awards shall not reduce the Shares authorized for grant under the Plan or the applicable limitations applicable to a Participant under Section 10.5, nor shall Shares subject to a Substitute Award again be available for Awards under the Plan as provided in paragraph (b) above.  Additionally, in the event that a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan;

 

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provided that Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not Employees or Directors prior to such acquisition or combination.

 

3.2                            Character of Shares.  Any Shares issued hereunder may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares purchased in the open market or otherwise.

 

4.                                    ELIGIBILITY AND ADMINISTRATION

 

4.1                            Eligibility.  Any Employee, Director or Consultant shall be eligible to be selected as a Participant.

 

4.2                            Administration.  (a) The Plan shall be administered by the Committee.  The Committee shall have full power and authority, subject to the provisions of the Plan and subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be adopted by the Board, to: (i) select the Employees, Directors and Consultants to whom Awards may from time to time be granted hereunder; (ii) determine the type or types of Awards to be granted to each Participant hereunder; (iii) determine the number of Shares (or dollar value) to be covered by each Award granted hereunder; (iv) determine the terms and conditions, not inconsistent with the provisions of the Plan, of any Award granted hereunder; (v) determine whether, to what extent and under what circumstances Awards may be settled in cash, Shares or other property; (vi) determine whether, to what extent, and under what circumstances cash, Shares, other property and other amounts payable with respect to an Award made under the Plan shall be deferred either automatically or at the election of the Participant; (vii) determine whether, to what extent and under what circumstances any Award shall be canceled or suspended; (viii) interpret and administer the Plan and any instrument or agreement entered into under or in connection with the Plan, including any Award Agreement; (ix) correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent that the Committee shall deem desirable to carry it into effect; (x) establish such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; (xi) determine whether any Award, other than an Option or Stock Appreciation Right, will have Dividend Equivalents; and (xii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.

 

(b)                              Decisions of the Committee shall be final, conclusive and binding on all persons or entities, including the Company, any Participant, and any Subsidiary.  A majority of the members of the Committee may determine its actions, including fixing the time and place of its meetings.

 

(c)                               To the extent not inconsistent with applicable law, including Section 162(m) of the Code with respect to Awards intended to comply with the performance-based compensation exception under Section 162(m), or the rules and regulations of the principal U.S. national securities exchange on which the Shares are traded, the Committee may (i) delegate to a committee of one or more directors of the Company any of the authority of the Committee under

 

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the Plan, including the right to grant, cancel or suspend Awards and (ii) to the extent permitted by law, authorize one or more executive officers to do one or more of the following with respect to Employees who are not directors or executive officers of the Company: (A) designate Employees (including officers) to be recipients of Awards, (B) determine the number of Shares subject to such Awards to be received by such Employees and (C) cancel or suspend Awards to such Employees; provided that (x) any resolution of the Committee authorizing such officer(s) must specify the total number of Shares subject to Awards that such officer(s) may so award and (y) the Committee may not authorize any officer to designate himself or herself as the recipient of an Award.

 

5.                                    OPTIONS

 

5.1                            Grant of Options.  Options may be granted hereunder to Participants either alone or in addition to other Awards granted under the Plan.  Any Option shall be subject to the terms and conditions of this Article and to such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall deem desirable.

 

5.2                            Award Agreements.  All Options shall be evidenced by an Award Agreement in such form and containing such terms and conditions as the Committee shall determine which are not inconsistent with the provisions of the Plan.  The terms and conditions of Options need not be the same with respect to each Participant.  Granting an Option pursuant to the Plan shall impose no obligation on the recipient to exercise such Option.  Any Participant who is granted an Option pursuant to this Article may hold more than one Option granted pursuant to the Plan at the same time.

 

5.3                            Option Price.  Other than in connection with Substitute Awards, the option price per Share purchasable under any Option granted pursuant to this Article shall not be less than 100% of the Fair Market Value of one Share on the date of grant of such Option; provided, however, that in the case of an Incentive Stock Option granted to a Participant who, at the time of the grant, owns stock representing more than 10% of the voting power of all classes of stock of the Company or any Subsidiary, the option price per share shall be no less than 110% of the Fair Market Value of one Share on the date of grant.  Other than pursuant to Section 12.2, the Committee shall not without the approval of the Company’s stockholders (a) lower the option price per Share of an Option after it is granted, (b) cancel an Option in exchange for cash or another Award (other than in connection with a Change in Control as defined in Section 11.3), or (c) take any other action with respect to an Option that would be treated as a repricing under the rules and regulations of the principal U.S. national securities exchange on which the Shares are traded.

 

5.4                            Option Term.  The term of each Option shall be fixed by the Committee in its sole discretion; provided that no Option shall be exercisable after the expiration of ten (10) years from the date the Option is granted, except in the event of death or disability; provided, however, that the term of the Option shall not exceed five (5) years from the date the Option is granted in the case of an Incentive Stock Option granted to a Participant who, at the time of the grant, owns stock representing more than 10% of the voting power of all classes of stock of the Company or any Subsidiary.  Notwithstanding the foregoing, in the event that on the last business day of the term of an Option (i) the exercise of the Option, other than an Incentive Stock Option, is

 

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prohibited by applicable law or (ii) Shares may not be purchased or sold by certain employees or directors of the Company due to the “black-out period” of a Company policy or a “lock-up” agreement undertaken in connection with an issuance of securities by the Company, the term shall be extended for a period of thirty (30) days following the end of the legal prohibition, black-out period or lock-up agreement.

 

5.5                            Exercise of Options.  (a) Vested Options granted under the Plan shall be exercised by the Participant (or by a Permitted Assignee thereof or the Participant’s executors, administrators, guardian or legal representative, as may be provided in an Award Agreement) as to all or part of the Shares covered thereby, by giving notice of exercise to the Company or its designated agent, specifying the number of Shares to be purchased.  The notice of exercise shall be in such form, made in such manner, and shall comply with such other requirements consistent with the provisions of the Plan as the Committee may prescribe from time to time.

 

(b)                              Unless otherwise provided in an Award Agreement, full payment of such purchase price shall be made at the time of exercise and shall be made (i) in cash or cash equivalents (including certified check or bank check or wire transfer of immediately available funds), (ii) by tendering previously acquired Shares (either actually or by attestation) valued at their then Fair Market Value, (iii) with the consent of the Committee, by delivery of other consideration having a Fair Market Value on the exercise date equal to the total purchase price, (iv) with the consent of the Committee, by withholding Shares otherwise issuable in connection with the exercise of the Option, (v) through any other method specified in an Award Agreement (including same-day sales through a broker), or (vi) any combination of any of the foregoing.  The notice of exercise, accompanied by such payment, shall be delivered to the Company at its principal business office or such other office as the Committee may from time to time direct, and shall be in such form, containing such further provisions consistent with the provisions of the Plan, as the Committee may from time to time prescribe.  In no event may any Option granted hereunder be exercised for a fraction of a Share.

 

(c)                               Notwithstanding the foregoing, an Award Agreement may provide that if on the last day of the term of an Option the Fair Market Value of one Share exceeds the option price per Share, the Participant has not exercised the Option (or a tandem Stock Appreciation Right, if applicable) and the Option has not expired, the Option shall be deemed to have been exercised by the Participant on such day with payment made by withholding Shares otherwise issuable in connection with the exercise of the Option.  In such event, the Company shall deliver to the Participant the number of Shares for which the Option was deemed exercised, less the number of Shares required to be withheld for the payment of the total purchase price and required withholding taxes; provided, however, any fractional Share shall be settled in cash.

 

5.6                            Form of Settlement.  In its sole discretion, the Committee may provide that the Shares to be issued upon an Option’s exercise shall be in the form of Restricted Stock or other similar securities.

 

5.7                            Incentive Stock Options.  The Committee may grant Incentive Stock Options to any Employee subject to the requirements of Section 422 of the Code.  Solely for purposes of determining whether Shares are available for the grant of Incentive Stock Options under the Plan, the maximum aggregate number of Shares that may be issued pursuant to Incentive Stock

 

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Options granted under the Plan shall be the Maximum Plan Shares, subject to adjustment as provided in Section 12.2.

 

6.                                    STOCK APPRECIATION RIGHTS

 

6.1                            Grant and Exercise.  The Committee may grant Stock Appreciation Rights (a) in tandem with all or part of any Option granted under the Plan or at any subsequent time during the term of such Option, (b) in tandem with all or part of any Award (other than an Option) granted under the Plan or at any subsequent time during the term of such Award, or (c) without regard to any Option or other Award in each case upon such terms and conditions as the Committee may establish in its sole discretion.

 

6.2                            Terms and Conditions.  Stock Appreciation Rights shall be subject to such terms and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time by the Committee, including the following:

 

(a)                               Upon the exercise of a Stock Appreciation Right, the holder shall have the right to receive the excess of (i) the Fair Market Value of one Share on the date of exercise (or such amount less than such Fair Market Value as the Committee shall so determine at any time during a specified period before the date of exercise) over (ii) the grant price of the Stock Appreciation Right.

 

(b)                              The Committee shall determine in its sole discretion whether payment on exercise of a Stock Appreciation Right shall be made in cash, in whole Shares or other property, or any combination thereof.

 

(c)                               The terms and conditions of Stock Appreciation Rights need not be the same with respect to each recipient.

 

(d)                             The Committee may impose such other terms and conditions on the exercise of any Stock Appreciation Right as it shall deem appropriate.  A Stock Appreciation Right shall (i) have a grant price per Share of not less than the Fair Market Value of one Share on the date of grant or, if applicable, on the date of grant of an Option with respect to a Stock Appreciation Right granted in exchange for or in tandem with, but subsequent to, the Option (subject to the requirements of Section 409A of the Code) except in the case of Substitute Awards or in connection with an adjustment provided in Section 12.2, and (ii) have a term not greater than ten (10) years, except in the event of death or disability.  Notwithstanding clause (ii) of the preceding sentence, in the event that on the last business day of the term of a Stock Appreciation Right (x) the exercise of the Stock Appreciation Right is prohibited by applicable law or (y) Shares may not be purchased or sold by certain employees or directors of the Company due to the “black-out period” of a Company policy or a “lock-up” agreement undertaken in connection with an issuance of securities by the Company, the term shall be extended for a period of thirty (30) days following the end of the legal prohibition, black-out period or lock-up agreement.

 

(e)                               An Award Agreement may provide that if on the last day of the term of a Stock Appreciation Right the Fair Market Value of one Share exceeds the grant price per Share of the Stock Appreciation Right, the Participant has not exercised the Stock Appreciation Right

 

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or the tandem Option (if applicable), and the Stock Appreciation Right has not expired, the Stock Appreciation Right shall be deemed to have been exercised by the Participant on such day.  In such event, the Company shall make payment to the Participant in accordance with this Section, reduced by the number of Shares (or cash) required for withholding taxes; provided, however, any fractional Share shall be settled in cash.

 

(f)                                Without the approval of the Company’s stockholders, other than pursuant to Section 12.2, the Committee shall not (i) reduce the grant price of any Stock Appreciation Right after the date of grant, (ii) cancel any Stock Appreciation Right in exchange for cash or another Award (other than in connection with a Change in Control as defined in Section 11.3), or (iii) take any other action with respect to a Stock Appreciation Right that would be treated as a repricing under the rules and regulations of the principal U.S. national securities exchange on which the Shares are traded.

 

7.                                    RESTRICTED STOCK AND RESTRICTED STOCK UNITS

 

7.1                            Grants.  Awards of Restricted Stock and of Restricted Stock Units may be granted hereunder to Participants either alone or in addition to other Awards granted under the Plan (a “Restricted Stock Award” or “Restricted Stock Unit Award” respectively), and such Restricted Stock Awards and Restricted Stock Unit Awards shall also be available as a form of payment of Performance Awards and other earned cash-based incentive compensation.  The Committee has absolute discretion to determine whether any consideration (other than services) is to be received by the Company or any Subsidiary as a condition precedent to the grant of Restricted Stock or Restricted Stock Units, subject to such minimum consideration as may be required by applicable law.

 

7.2                            Award Agreements.  The terms of any Restricted Stock Award or Restricted Stock Unit Award granted under the Plan shall be set forth in an Award Agreement which shall contain provisions determined by the Committee and not inconsistent with the Plan.  The terms of Restricted Stock Awards and Restricted Stock Unit Awards need not be the same with respect to each Participant.

 

7.3                            Rights of Holders of Restricted Stock and Restricted Stock Units.  Unless otherwise provided in the Award Agreement, beginning on the date of grant of the Restricted Stock Award and subject to execution of the Award Agreement, the Participant shall become a stockholder of the Company with respect to all Shares subject to the Award Agreement and shall have all of the rights of a stockholder, including the right to vote such Shares and the right to receive distributions made with respect to such Shares.  A Participant who holds a Restricted Stock Unit Award shall only have those rights specifically provided for in the Award Agreement; provided, however, in no event shall the Participant have voting rights with respect to such Award.  Except as otherwise provided in an Award Agreement, any Shares or any other property distributed as a dividend or otherwise with respect to any Restricted Stock Award or Restricted Stock Unit Award as to which the restrictions have not yet lapsed shall be subject to the same restrictions as such Restricted Stock Award or Restricted Stock Unit Award.  Notwithstanding the provisions of this Section, cash dividends, stock and any other property (other than cash) distributed as a dividend or otherwise with respect to any Restricted Stock Award or Restricted Stock Unit Award that vests based on achievement of performance goals shall either (i) not be

 

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paid or credited or (ii) be accumulated, shall be subject to restrictions and risk of forfeiture to the same extent as the Restricted Stock or Restricted Stock Units with respect to which such cash, stock or other property has been distributed and shall be paid at the time such restrictions and risk of forfeiture lapse.

 

7.4                            Issuance of Shares.  Any Restricted Stock granted under the Plan may be evidenced in such manner as the Board may deem appropriate, including book-entry registration or issuance of a stock certificate or certificates, which certificate or certificates shall be held by the Company.  Such book entry registration, certificate or certificates shall be registered in the name of the Participant and shall bear an appropriate legend referring to the restrictions applicable to such Restricted Stock.

 

8.                                    OTHER SHARE-BASED AWARDS

 

8.1                            Grants.  Other Awards of Shares and other Awards that are valued in whole or in part by reference to, or are otherwise based on, Shares or other property (“Other Share-Based Awards”), including deferred stock units, may be granted hereunder to Participants either alone or in addition to other Awards granted under the Plan.  Other Share-Based Awards shall also be available as a form of payment of other Awards granted under the Plan and other earned cash-based compensation.

 

8.2                            Award Agreements.  The terms of Other Share-Based Awards granted under the Plan shall be set forth in an Award Agreement which shall contain provisions determined by the Committee and not inconsistent with the Plan.  The terms of such Awards need not be the same with respect to each Participant.  Notwithstanding the provisions of this Section, Dividend Equivalents with respect to the Shares covered by an Other Share-Based Award that vests based on achievement of performance goals shall be subject to restrictions and risk of forfeiture to the same extent as the Shares covered by an Other Share-Based Award with respect to which such cash, stock or other property has been distributed.

 

8.3                            Payment.  Except as may be provided in an Award Agreement, Other Share-Based Awards may be paid in cash, Shares, other property, or any combination thereof, in the sole discretion of the Committee.  Other Share-Based Awards may be paid in a lump sum or in installments or, in accordance with procedures established by the Committee, on a deferred basis subject to the requirements of Section 409A of the Code.

 

8.4                            Deferral of Director Fees.  Directors shall, if determined by the Board, receive Other Share-Based Awards in the form of deferred stock units in lieu of all or a portion of their annual retainer.  In addition Directors may elect to receive Other Share-Based Awards in the form of deferred stock units in lieu of all or a portion of their annual and committee retainers and annual meeting fees, provided that such election is made in accordance with the requirements of Section 409A of the Code.  The Committee shall, in its absolute discretion, establish such rules and procedures as it deems appropriate for such elections and for payment in deferred stock units.

 

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9.                                    PERFORMANCE AWARDS

 

9.1                            Grants.  Performance Awards in the form of Performance Cash, Performance Shares or Performance Units, as determined by the Committee in its sole discretion, may be granted hereunder to Participants, for no consideration or for such minimum consideration as may be required by applicable law, either alone or in addition to other Awards granted under the Plan. The performance goals to be achieved for each Performance Period shall be conclusively determined by the Committee and may be based upon the criteria set forth in Section 10.2 or such other criteria as determined by the Committee in its discretion.

 

9.2                            Award Agreements.  The terms of any Performance Award granted under the Plan shall be set forth in an Award Agreement (or, if applicable, in a resolution duly adopted by the Committee) which shall contain provisions determined by the Committee and not inconsistent with the Plan, including whether such Awards shall have Dividend Equivalents. The terms of Performance Awards need not be the same with respect to each Participant.

 

9.3                            Terms and Conditions.  The performance criteria to be achieved during any Performance Period and the length of the Performance Period shall be determined by the Committee upon the grant of each Performance Award.  The amount of the Award to be distributed shall be conclusively determined by the Committee.

 

9.4                            Payment.  Except as provided in Article 11, as provided by the Committee or as may be provided in an Award Agreement, Performance Awards will be distributed only after the end of the relevant Performance Period.  Performance Awards may be paid in cash, Shares, other property, or any combination thereof, in the sole discretion of the Committee.  Performance Awards may be paid in a lump sum or in installments following the close of the Performance Period or, in accordance with procedures established by the Committee, on a deferred basis subject to the requirements of Section 409A of the Code.

 

10.                            CODE SECTION 162(m) PROVISIONS

 

10.1                    Covered Employees.  Notwithstanding any other provision of the Plan, if the Committee determines at the time a Restricted Stock Award, a Restricted Stock Unit Award, a Performance Award or an Other Share-Based Award is granted to a Participant who is, or is likely to be, as of the end of the tax year in which the Company would claim a tax deduction in connection with such Award, a Covered Employee, then the Committee may provide that this Article 10 is applicable to such Award.

 

10.2                    Performance Criteria.  If the Committee determines that a Restricted Stock Award, a Restricted Stock Unit, a Performance Award or an Other Share-Based Award is intended to be subject to this Article 10, the lapsing of restrictions thereon and the distribution of cash, Shares or other property pursuant thereto, as applicable, shall be subject to the achievement of one or more objective performance goals established by the Committee, which shall be based on the attainment of specified levels of one or any combination of the following: net sales; revenue; revenue growth or product revenue growth; operating income (before or after taxes); pre- or after-tax income or loss (before or after allocation of corporate overhead and bonus); earnings or loss per share; net income or loss (before or after taxes); return on equity; total

 

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stockholder return; return on assets or net assets; appreciation in and/or maintenance of the price of the Shares or any other publicly-traded securities of the Company; market share; gross profits; earnings or losses (including earnings or losses before taxes, before interest and taxes, or before interest, taxes, depreciation and amortization); economic value-added models or equivalent metrics; comparisons with various stock market indices; reductions in costs; cash flow or cash flow per share (before or after dividends); return on capital (including return on total capital or return on invested capital); cash flow return on investment; improvement in or attainment of expense levels or working capital levels, including cash, inventory and accounts receivable; operating margin; gross margin; year-end cash; cash margin; debt reduction; stockholders equity; operating efficiencies; market share; customer satisfaction; customer growth; employee satisfaction; regulatory achievements (including submitting or filing applications or other documents with regulatory authorities or receiving approval of any such applications or other documents and passing pre-approval inspections (whether of the Company or the Company’s third-party manufacturer) and validation of manufacturing processes (whether the Company’s or the Company’s third-party manufacturer’s)); strategic partnerships or transactions (including in-licensing and out-licensing of intellectual property; establishing relationships with commercial entities with respect to the marketing, distribution and sale of the Company’s products (including with group purchasing organizations, distributors and other vendors); supply chain achievements (including establishing relationships with manufacturers or suppliers of component materials and manufacturers of the Company’s products); co-development, co-marketing, profit sharing, joint venture or other similar arrangements; financial ratios, including those measuring liquidity, activity, profitability or leverage; cost of capital or assets under management; financing and other capital raising transactions (including sales of the Company’s equity or debt securities, factoring transactions, sales or licenses of the Company’s assets, including its intellectual property, whether in a particular jurisdiction or territory or globally, or through partnering transactions); implementation, completion or attainment of measurable objectives with respect to research, development, manufacturing, commercialization, products or projects, production volume levels, acquisitions and divestitures; and recruiting and maintaining personnel.  Such performance goals also may be based solely by reference to the Company’s performance or the performance of a Subsidiary, division, business segment or business unit of the Company, or based upon the relative performance of other companies or upon comparisons of any of the indicators of performance relative to other companies.  The Committee may also exclude charges related to an event or occurrence which the Committee determines should appropriately be excluded, including (a) restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring charges, (b) an event either not directly related to the operations of the Company or not within the reasonable control of the Company’s management, or (c) the cumulative effects of tax or accounting changes in accordance with U.S. generally accepted accounting principles.  Such performance goals shall be set by the Committee within the time period prescribed by, and shall otherwise comply with the requirements of, Section 162(m) of the Code, and the regulations thereunder.

 

10.3                    Adjustments.  Notwithstanding any provision of the Plan (other than Article 11), with respect to any Restricted Stock Award, Restricted Stock Unit Award, Performance Award or Other Share-Based Award that is subject to this Section 10, the Committee may adjust downwards, but not upwards, the amount payable pursuant to such Award, and the Committee may not waive the achievement of the applicable performance goals except in the case of the

 

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death or disability of the Participant or as otherwise determined by the Committee in special circumstances.

 

10.4                    Restrictions.  The Committee shall have the power to impose such other restrictions on Awards subject to this Article as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements for “performance-based compensation” within the meaning of Section 162(m) of the Code.

 

10.5                    Limitations on Grants to Individual Participants.  Subject to adjustment as provided in Section 12.2, no Participant may (i) be granted Options or Stock Appreciation Rights during any 12-month period with respect to more than 35% of the Maximum Plan Shares and (ii) earn more than 35% of the Maximum Plan Shares for each twelve (12) months in the vesting period or Performance Period with respect to Restricted Stock Awards, Restricted Stock Unit Awards, Performance Awards and/or Other Share-Based Awards that are intended to comply with the performance-based exception under Code Section 162(m) and are denominated in Shares (provided that any Shares that would have been earned after such twelve (12) month period that are earned due to an acceleration as a result of a Change in Control of the Company shall not count against such limitation).  In addition to the foregoing, the maximum dollar value that may be earned by any Participant for each twelve (12) months in a Performance Period with respect to Performance Awards that are intended to comply with the performance-based exception under Code Section 162(m) and are denominated in cash is $2,000,000 (provided that any amount that would have been earned after such twelve (12) month period that is earned due to an acceleration as a result of a Change in Control of the Company shall not count against such limitation).  If an Award is cancelled, the cancelled Award shall continue to be counted toward the applicable limitation in this Section.

 

11.                            CHANGE IN CONTROL PROVISIONS

 

11.1                    Impact on Certain Awards.  Award Agreements may provide that in the event of a Change in Control of the Company (as defined in Section 11.3): (i) Options and Stock Appreciation Rights outstanding as of the date of the Change in Control shall be cancelled and terminated without payment if the Fair Market Value of one Share as of the date of the Change in Control is less than the per Share Option exercise price or Stock Appreciation Right grant price, and (ii) all Performance Awards shall be (x) considered to be earned and payable based on achievement of performance goals or based on target performance (either in full or pro rata based on the portion of Performance Period completed as of the date of the Change in Control), and any limitations or other restrictions shall lapse and such Performance Awards shall be immediately settled or distributed or (y) converted into Restricted Stock Awards or Restricted Stock Unit Awards based on achievement of performance goals or based on target performance (either in full or pro rata based on the portion of Performance Period completed as of the date of the Change in Control) that are subject to Section 11.2.

 

11.2                    Assumption or Substitution of Certain Awards.  (a)  Unless otherwise provided in an Award Agreement, in the event of a Change in Control of the Company in which the successor company assumes or substitutes for an Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award or Other Share-Based Award (or in which the Company is the ultimate parent corporation and continues the Award), if a Participant’s

 

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employment with such successor company (or the Company) or a subsidiary thereof terminates within 12 months following such Change in Control (or such other period set forth in the Award Agreement, including prior thereto if applicable) and under the circumstances specified in the Award Agreement: (i) Options and Stock Appreciation Rights outstanding as of the date of such termination of employment will immediately vest, become fully exercisable, and may thereafter be exercised for 12 months (or the period of time set forth in the Award Agreement), (ii) the restrictions, limitations and other conditions applicable to Restricted Stock and Restricted Stock Units outstanding as of the date of such termination of employment shall lapse and the Restricted Stock and Restricted Stock Units shall become free of all restrictions, limitations and conditions and become fully vested, and (iii) the restrictions, limitations and other conditions applicable to any Other Share-Based Awards or any other Awards shall lapse, and such Other Share-Based Awards or such other Awards shall become free of all restrictions, limitations and conditions and become fully vested and transferable to the full extent of the original grant.  For the purposes of this Section 11.2, an Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award or Other Share-Based Award shall be considered assumed or substituted for if following the Change in Control the Award confers the right to purchase or receive, for each Share subject to the Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award or Other Share-Based Award immediately prior to the Change in Control, the consideration (whether stock, cash or other securities or property) received in the transaction constituting a Change in Control by holders of Shares for each Share held on the effective date of such transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the transaction constituting a Change in Control is not solely common stock of the successor company, the Committee may, with the consent of the successor company, provide that the consideration to be received upon the exercise or vesting of an Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award or Other Share-Based Award, for each Share subject thereto, will be solely common stock of the successor company substantially equal in fair market value to the per Share consideration received by holders of Shares in the transaction constituting a Change in Control.  The determination of such substantial equality of value of consideration shall be made by the Committee in its sole discretion and its determination shall be conclusive and binding.

 

(b)                              Unless otherwise provided in an Award Agreement, in the event of a Change in Control of the Company to the extent the successor company does not assume or substitute for an Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award or Other Share-Based Award (or in which the Company is the ultimate parent corporation and does not continue the Award), then immediately prior to the Change in Control: (i) those Options and Stock Appreciation Rights outstanding as of the date of the Change in Control that are not assumed or substituted for (or continued) shall immediately vest and become fully exercisable, (ii) restrictions, limitations and other conditions applicable to Restricted Stock and Restricted Stock Units that are not assumed or substituted for (or continued) shall lapse and the Restricted Stock and Restricted Stock Units shall become free of all restrictions, limitations and conditions and become fully vested, and (iii) the restrictions, other limitations and other conditions applicable to any Other Share-Based Awards or any other Awards that are not assumed or substituted for (or continued) shall lapse, and such Other Share-Based Awards or such other Awards shall become free of all restrictions, limitations and conditions and become fully vested and transferable to the full extent of the original grant.

 

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(c)                               The Committee, in its discretion, may determine that, upon the occurrence of a Change in Control of the Company, each Option and Stock Appreciation Right outstanding shall terminate within a specified number of days after notice to the Participant, and/or that each Participant shall receive, with respect to each Share subject to such Option or Stock Appreciation Right, an amount equal to the excess of the Fair Market Value of such Share immediately prior to the occurrence of such Change in Control over the exercise price per Share of such Option and/or Stock Appreciation Right; such amount to be payable in cash, in one or more kinds of stock or property (including the stock or property, if any, payable in the transaction) or in a combination thereof, as the Committee, in its discretion, shall determine.

 

11.3                    Change in Control.  For purposes of the Plan, unless otherwise provided in an Award Agreement, Change in Control means the occurrence of any one of the following events:

 

(a)                               During any 12-month period, individuals who, as of the beginning of such period, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the beginning of such period whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director;

 

(b)                              Any “person” (as such term is defined in the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”); provided, however, that the event described in this paragraph (b) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions:  (i) by the Company or any Subsidiary, (ii) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (iii) by any underwriter temporarily holding securities pursuant to an offering of such securities, (iv) pursuant to a Non-Qualifying Transaction, as defined in paragraph (c), or (v) by any person of Voting Securities from the Company, if a majority of the Incumbent Board approves in advance the acquisition of beneficial ownership of 50% or more of Company Voting Securities by such person;

 

(c)                               The consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its Subsidiaries that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination:  (i) more than 50% of the total voting power of (A) the corporation resulting from such Business Combination (the “Surviving Corporation”), or (B) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent 

 

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Corporation”), is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination, (ii) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (iii) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in (i), (ii) and (iii) above shall be deemed to be a “Non-Qualifying Transaction”); or

 

(d)                             The stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or the consummation of a sale of all or substantially all of the Company’s assets.

 

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any person acquires beneficial ownership of more than 50% of the Company Voting Securities as a result of the acquisition of Company Voting Securities by the Company which reduces the number of Company Voting Securities outstanding; provided, that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities beneficially owned by such person, a Change in Control of the Company shall then occur.

 

12.                            GENERALLY APPLICABLE PROVISIONS

 

12.1                    Amendment and Termination of the Plan.  The Board may, from time to time, alter, amend, suspend or terminate the Plan as it shall deem advisable, subject to any requirement for stockholder approval imposed by applicable law, including the rules and regulations of the principal U.S. national securities exchange on which the Shares are traded; provided that the Board may not amend the Plan in any manner that would result in noncompliance with Rule 16b-3 under the Exchange Act; and further provided that the Board may not, without the approval of the Company’s stockholders, amend the Plan to (a) increase the number of Shares that may be the subject of Awards under the Plan (except for adjustments pursuant to Section 12.2), (b) expand the types of awards available under the Plan, (c) materially expand the class of persons eligible to participate in the Plan, (d) amend Section 5.3 or Section 6.2(f) to eliminate the requirements relating to minimum exercise price, minimum grant price and stockholder approval, (e) increase the maximum permissible term of any Option specified by Section 5.4 or the maximum permissible term of a Stock Appreciation Right specified by Section 6.2(d), or (f) increase any of the limitations in Section 10.5.  The Board may not (except pursuant to Section 12.2 or in connection with a Change in Control), without the approval of the Company’s stockholders, cancel an Option or Stock Appreciation Right in exchange for cash or take any 

 

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action with respect to an Option or Stock Appreciation Right that would be treated as a repricing under the rules and regulations of the principal U.S. national securities exchange on which the Shares are traded, including a reduction of the exercise price of an Option or the grant price of a Stock Appreciation Right or the exchange of an Option or Stock Appreciation Right for another Award.  In addition, no amendments to, or termination of, the Plan shall impair the rights of a Participant in any material respect under any Award previously granted without such Participant’s consent.

 

12.2                    Adjustments.  In the event of any merger, reorganization, consolidation, recapitalization, dividend or distribution (whether in cash, shares or other property, other than a regular cash dividend), stock split, reverse stock split, spin-off or similar transaction or other change in corporate structure affecting the Shares or the value thereof, such adjustments and other substitutions shall be made to the Plan and to Awards as the Committee deems equitable or appropriate taking into consideration the accounting and tax consequences, including such adjustments in the aggregate number, class and kind of securities that may be delivered under the Plan, the limitations in Section 10.5 (other than to Awards denominated in cash), the maximum number of Shares that may be issued pursuant to Incentive Stock Options and, in the aggregate or to any Participant, in the number, class, kind and option or exercise price of securities subject to outstanding Awards granted under the Plan (including, if the Committee deems appropriate, the substitution of similar options to purchase the shares of, or other awards denominated in the shares of, another company) as the Committee may determine to be appropriate; provided, however, that the number of Shares subject to any Award shall always be a whole number.

 

12.3                    Transferability of Awards.  Except as provided below, no Award and no Shares that have not been issued or as to which any applicable restriction, performance or deferral period has not lapsed, may be sold, assigned, transferred, pledged or otherwise encumbered, other than by will or the laws of descent and distribution, and such Award may be exercised during the life of the Participant only by the Participant or the Participant’s guardian or legal representative.  To the extent and under such terms and conditions as determined by the Committee, a Participant may assign or transfer an Award without consideration (each transferee thereof, a “Permitted Assignee”) (i) to the Participant’s spouse, children or grandchildren (including any adopted and step children or grandchildren), parents, grandparents or siblings, (ii) to a trust for the benefit of one or more of the Participant or the persons referred to in clause (i), (iii) to a partnership, limited liability company or corporation in which the Participant or the persons referred to in clause (i) are the only partners, members or shareholders or (iv) for charitable donations; provided that such Permitted Assignee shall be bound by and subject to all of the terms and conditions of the Plan and the Award Agreement relating to the transferred Award and shall execute an agreement satisfactory to the Company evidencing such obligations; and provided further that such Participant shall remain bound by the terms and conditions of the Plan.  The Company shall cooperate with any Permitted Assignee and the Company’s transfer agent in effectuating any transfer permitted under this Section.

 

12.4                    Termination of Employment or Services.  The Committee shall determine and set forth in each Award Agreement whether any Awards granted in such Award Agreement will continue to be exercisable, continue to vest or be earned and the terms of such exercise, vesting or earning, on and after the date that a Participant ceases to be employed by or to provide services to the Company or any Subsidiary (including as a Director), whether by reason of death, 

 

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disability, voluntary or involuntary termination of employment or services, or otherwise.  The date of termination of a Participant’s employment or services will be determined by the Committee, which determination will be final.

 

12.5                    Deferral; Dividend Equivalents.  The Committee shall be authorized to establish procedures pursuant to which the payment of any Award may be deferred.  Subject to the provisions of the Plan and any Award Agreement, the recipient of an Award other than an Option or Stock Appreciation Right may, if so determined by the Committee, be entitled to receive, currently or on a deferred basis, amounts equivalent to cash, stock or other property dividends on Shares (“Dividend Equivalents”) with respect to the number of Shares covered by the Award, as determined by the Committee, in its sole discretion.  The Committee may provide that the Dividend Equivalents (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested and may provide that the Dividend Equivalents are subject to the same vesting or performance conditions as the underlying Award.  Notwithstanding the foregoing, Dividend Equivalents credited in connection with an Award that vests based on the achievement of performance goals shall be subject to restrictions and risk of forfeiture to the same extent as the Award with respect to which such Dividend Equivalents have been credited.

 

13.                            MISCELLANEOUS

 

13.1                    Award Agreements.  Each Award Agreement shall either be (a) in writing in a form approved by the Committee and executed by the Company by an officer duly authorized to act on its behalf, or (b) an electronic notice in a form approved by the Committee and recorded by the Company (or its designee) in an electronic recordkeeping system used for the purpose of tracking one or more types of Awards as the Committee may provide; in each case and if required by the Committee, the Award Agreement shall be executed or otherwise electronically accepted by the recipient of the Award in such form and manner as the Committee may require.  The Committee may authorize any officer of the Company to execute any or all Award Agreements on behalf of the Company.  The Award Agreement shall set forth the material terms and conditions of the Award as established by the Committee consistent with the provisions of the Plan.

 

13.2                    Tax Withholding.  The Company shall have the right to make all payments or distributions pursuant to the Plan to a Participant (or a Permitted Assignee thereof) net of any applicable federal, state and local taxes required to be paid or withheld as a result of (a) the grant of any Award, (b) the exercise of an Option or Stock Appreciation Right, (c) the delivery of Shares or cash, (d) the lapse of any restrictions in connection with any Award or (e) any other event occurring pursuant to the Plan.  The Company or any Subsidiary shall have the right to withhold from wages or other amounts otherwise payable to a Participant (or Permitted Assignee) such withholding taxes as may be required by law, or to otherwise require the Participant (or Permitted Assignee) to pay such withholding taxes.  If the Participant (or Permitted Assignee) shall fail to make such tax payments as are required, the Company or its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to such Participant (or Permitted Assignee) or to take such other action as may be necessary to satisfy such withholding obligations.  The Committee shall be authorized to establish procedures for election by Participants (or Permitted Assignee) to satisfy such obligation for the payment of such taxes by tendering previously acquired Shares 

 

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(either actually or by attestation, valued at their then Fair Market Value), or by directing the Company to retain Shares (up to the minimum required tax withholding rate for the Participant (or Permitted Assignee) or such other rate, including a higher rate specified by the Participant, that will not cause an adverse accounting consequence or cost) otherwise deliverable in connection with the Award.

 

13.3                    Right of Discharge Reserved; Claims to Awards.  Nothing in the Plan nor the grant of an Award hereunder shall confer upon any Employee, Director or Consultant the right to continue in the employment or service of the Company or any Subsidiary or affect any right that the Company or any Subsidiary may have to terminate the employment or service of (or to demote or to exclude from future Awards under the Plan) any such Employee, Director or Consultant at any time for any reason.  The Company shall not be liable for the loss of existing or potential profit from an Award granted in the event of termination of an employment or other relationship.  No Employee, Director or Consultant shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Employees, Directors or Consultants under the Plan.

 

13.4                    Substitute Awards.  Notwithstanding any other provision of the Plan, the terms of Substitute Awards may vary from the terms set forth in the Plan to the extent the Committee deems appropriate to conform, in whole or in part, to the provisions of the awards in substitution for which they are granted.

 

13.5                    Cancellation of Award; Forfeiture of Gain.  Notwithstanding anything to the contrary contained herein, an Award Agreement may provide that:

 

(a)                               In the event of a restatement of the Company’s financial statements, the Committee shall have the right to review any Award, the amount, payment or vesting of which was based on an entry in the financial statements that are the subject of the restatement.  If the Committee determines, based on the results of the restatement, that a lesser amount or portion of an Award should have been paid or vested, it may (i) cancel all or any portion of any outstanding Awards and (ii) require the Participant or other person to whom any payment has been made or shares or other property have been transferred in connection with the Award to forfeit and pay over to the Company, on demand, all or any portion of the gain (whether or not taxable) realized upon the exercise of any Option or Stock Appreciation Right and the value realized (whether or not taxable) on the vesting or payment of any other Award during the period beginning twelve months preceding the date of the restatement and ending with the date of cancellation of any outstanding Awards.

 

(b)                              If the Participant, without the consent of the Company, while employed by or providing services to the Company or any Subsidiary or after termination of such employment or service, violates a non-competition, non-solicitation or non-disclosure covenant or agreement or otherwise engages in activity that is in conflict with or adverse to the interest of the Company or any Subsidiary, as determined by the Committee in its sole discretion, then (i) any outstanding, vested or unvested, earned or unearned portion of the Award may, at the Committee’s discretion, be canceled and (ii)  the Committee, in its discretion, may require the Participant or other person to whom any payment has been made or Shares or other property have been transferred in connection with the Award to forfeit and pay over to the Company, on

 

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demand, all or any portion of the gain (whether or not taxable) realized upon the exercise of any Option or Stock Appreciation Right and the value realized (whether or not taxable) on the vesting or payment of any other Award during the time period specified in the Award Agreement.

 

13.6                    Stop Transfer Orders.  All certificates for Shares delivered under the Plan pursuant to any Award shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the SEC, any U.S. national securities exchange upon which the Shares are then listed, and any applicable federal or state securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

13.7                    Nature of Payments.  All Awards made pursuant to the Plan are in consideration of services performed or to be performed for the Company or any Subsidiary, division or business unit of the Company.  Any income or gain realized pursuant to Awards under the Plan constitutes a special incentive payment to the Participant and shall not be taken into account, to the extent permissible under applicable law, as compensation for purposes of any of the employee benefit plans of the Company or any Subsidiary except as may be determined by the Committee or by the Board or board of directors of the applicable Subsidiary.

 

13.8                    Other Plans.  Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.

 

13.9                    Severability.  The provisions of the Plan shall be deemed severable.  If any provision of the Plan shall be held unlawful or otherwise invalid or unenforceable in whole or in part by a court of competent jurisdiction or by reason of change in a law or regulation, such provision shall (a) be deemed limited to the extent that such court of competent jurisdiction deems it lawful, valid and/or enforceable and as so limited shall remain in full force and effect, and (b) not affect any other provision of the Plan or part thereof, each of which shall remain in full force and effect.  If the making of any payment or the provision of any other benefit required under the Plan shall be held unlawful or otherwise invalid or unenforceable by a court of competent jurisdiction, such unlawfulness, invalidity or unenforceability shall not prevent any other payment or benefit from being made or provided under the Plan, and if the making of any payment in full or the provision of any other benefit required under the Plan in full would be unlawful or otherwise invalid or unenforceable, then such unlawfulness, invalidity or unenforceability shall not prevent such payment or benefit from being made or provided in part, to the extent that it would not be unlawful, invalid or unenforceable, and the maximum payment or benefit that would not be unlawful, invalid or unenforceable shall be made or provided under the Plan.

 

13.10            Construction.  As used in the Plan, the words “include” and “including,” and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.”

 

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13.11            Unfunded Status of the Plan.  The Plan is intended to constitute an “unfunded” plan for incentive compensation.  With respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company.  In its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver the Shares or payments in lieu of or with respect to Awards hereunder; provided, however, that the existence of such trusts or other arrangements is consistent with the unfunded status of the Plan.

 

13.12            Governing Law.  The Plan and all determinations made and actions taken thereunder, to the extent not otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the State of Delaware, without reference to principles of conflict of laws, and construed accordingly.

 

13.13            Effective Date of Plan; Termination of Plan.  The Plan shall be effective on the date of the approval of the Plan by the holders of the shares entitled to vote thereon.  The Plan shall be null and void and of no effect if the foregoing condition is not fulfilled and in such event each Award shall, notwithstanding any of the preceding provisions of the Plan, be null and void and of no effect.  Awards may be granted under the Plan at any time and from time to time on or prior to the tenth anniversary of the effective date of the Plan, on which date the Plan will expire except as to Awards then outstanding under the Plan; provided, however, in no event may Incentive Stock Options be granted more than ten (10) years after the earlier of (i) the date of the adoption of the Plan by the Board or (ii) the effective date of the Plan as provided in the first sentence of this Section.  Such outstanding Awards shall remain in effect until they have been exercised or terminated, or have expired.

 

13.14            Foreign Employees and Consultants.  Awards may be granted to Participants who are foreign nationals or employed or providing services outside the United States, or both, on such terms and conditions different from those applicable to Awards to Employees or Consultants providing services in the United States as may, in the judgment of the Committee, be necessary or desirable in order to recognize differences in local law or tax policy.  The Committee also may impose conditions on the exercise or vesting of Awards in order to minimize the Company’s obligation with respect to tax equalization for Employees or Consultants on assignments outside their home country.

 

13.15            Compliance with Section 409A of the Code.  This Plan is intended to comply and shall be administered in a manner that is intended to comply with Section 409A of the Code and shall be construed and interpreted in accordance with such intent.  To the extent that an Award or the payment, settlement or deferral thereof is subject to Section 409A of the Code, the Award shall be granted, paid, settled or deferred in a manner that will comply with Section 409A of the Code, including regulations or other guidance issued with respect thereto, except as otherwise determined by the Committee.  Any provision of this Plan that would cause the grant of an Award or the payment, settlement or deferral thereof to fail to satisfy Section 409A of the Code shall be amended to comply with Section 409A of the Code on a timely basis, which may be made on a retroactive basis, in accordance with regulations and other guidance issued under Section 409A of the Code.

 

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13.16            No Registration Rights; No Right to Settle in Cash.  The Company has no obligation to register with any governmental body or organization (including, without limitation, the SEC) any of (a) the offer or issuance of any Award, (b) any Shares issuable upon the exercise of any Award, or (c) the sale of any Shares issued upon exercise of any Award, regardless of whether the Company in fact undertakes to register any of the foregoing.  In particular, in the event that any of (x) any offer or issuance of any Award, (y) any Shares issuable upon exercise of any Award, or (z) the sale of any Shares issued upon exercise of any Award are not registered with any governmental body or organization (including, without limitation, the SEC), the Company will not under any circumstance be required to settle its obligations, if any, under this Plan in cash.

 

13.17            Data Privacy.  As a condition of acceptance of an Award, the Participant explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of personal data as described in this Section by and among, as applicable, the Company and its Subsidiaries for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan.  The Participant understands that the Company and its Subsidiaries hold certain personal information about the Participant, including the Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company or any Subsidiary, details of all Awards or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in the Participant’s favor, for the purpose of implementing, managing and administering the Plan (the “Data”).  The Participant further understands that the Company and its Subsidiaries may transfer the Data amongst themselves as necessary for the purpose of implementation, management and administration of the Participant’s participation in the Plan, and that the Company and its Subsidiaries may each further transfer the Data to any third parties assisting the Company in the implementation, management and administration of the Plan.  The Participant understands that these recipients may be located in the Participant’s country, or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Participant’s country.  The Participant understands that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative.  The Participant, through participation in the Plan and acceptance of an Award under the Plan, authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Participant’s participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Participant may elect to deposit any Shares.  The Participant understands that the Data will be held only as long as is necessary to implement, manage, and administer the Participant’s participation in the Plan.  The Participant understands that he or she may, at any time, view the Data, request additional information about the storage and processing of the Data, require any necessary amendments to the Data, or refuse or withdraw the consents herein in writing, in any case without cost, by contacting his or her local human resources representative.  The Participant understands that refusal or withdrawal of consent may affect the Optionee’s ability to participate in the Plan.  For more information on the consequences of refusal to consent or withdrawal of consent, the Optionee understands that he or she may contact his or her local human resources representative.

 

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13.18            Indemnity.  To the extent allowable pursuant to applicable law, each member of the Committee or of the Board and any person to whom the Committee has delegated any of its authority under the Plan shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such person in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in such action, suit, or proceeding against him or her; provided he or she gives the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf.  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

 

13.19            Captions.  The captions in the Plan are for convenience of reference only, and are not intended to narrow, limit or affect the substance or interpretation of the provisions contained herein.

 

- 23 -Exhibit 10.35

 

	
 
    	
Confidential treatment   has been requested for portions of this exhibit. The copy filed herewith   omits the information subject to the confidentiality request. Omissions are   designated as [*****]. A complete version of this exhibit has been filed   separately with the Securities and Exchange Commission.
    

 

AMENDED AND RESTATED DEVELOPMENT AGREEMENT

 

This Amended and Restated Development Agreement (the “Agreement”) is entered into as of May, 8 2013 (the “New Effective Date”) by, on the one hand, Skyworks Solutions, Inc. (“Skyworks”), including its wholly-owned subsidiaries, and, on the other hand, Resonant LLC, a California limited liability company (“Resonant”).  Skyworks and Resonant are each a disclosing party(ies) (“Discloser(s)”) and a receiving party(ies) (“Recipient(s)”) of Confidential Information under this Agreement, and each may be referred to individually as a “party” and collectively as the “parties”.

 

A.                                    Skyworks is in the business of designing and distributing high reliability analog and mixed signal semiconductor technologies which support a variety of industries.

 

B.                                    Superconductor Technologies, Inc. (“STI”) has developed novel acoustic wave filter design technology (the “Filter Technology”) which it desires to commercialize.  STI initially planned to contribute the Filter Technology to Resonant Inc., a Delaware corporation (“Old Resonant”), for commercialization.  STI later decided instead to use a limited liability company and contributed the Filter Technology to Resonant.

 

C.                                    On February 3, 2012 (the “Original Effective Date”), Skyworks, STI and Old Resonant entered into a Development Agreement (the “Original Agreement”) to allow the Parties to develop Duplexers (as defined below), for incorporation into Skyworks cellular terminal front-end module (“FEM”) products (the “Development Project”).

 

D.                                    On July 6, 2012, STI contributed the Filter Technology and all of its rights and obligations under the Original Agreement to Resonant in exchange for a minority interest in Resonant.  Resonant has the exclusive right and sole responsibility to further develop and commercialize the Filter Technology.  Skyworks consented to the transfer of the Original Agreement from Old Resonant to Resonant in a letter dated June 3, 2012.

 

E.                                     The parties desire to enter into this Agreement to amend and restate the terms and conditions set forth in the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows:

 

1.                                      Definitions.  For purposes of this Agreement, the following capitalized terms shall have the meanings specified below.

 

“Confidential Information” means any information disclosed by any Discloser to any Recipient, in writing, orally or by inspection of tangible objects (including, without limitation, documents, prototypes, samples, plant and equipment), which is designated as “Confidential,” “Proprietary” or some similar designation.  Information communicated orally will be considered Confidential Information if such information is confirmed in writing as being Confidential Information within thirty (30) days after the initial disclosure.  Confidential Information may also include information disclosed to a Recipient by third parties on behalf of a Discloser.  All Proprietary Technology disclosed by Discloser shall be deemed Confidential Information of Discloser.

 

“Proprietary Technology” means any proprietary technology (including, without limitation, any and all products, components, parts, know-how, data, studies, research, materials, formulae, protocols, techniques, experimental work, inventions, discoveries, designs, drawings, concepts, procedures, methodologies, ideas, diagrams, documentation, specifications, operational data, models, prototypes, works of authorship and other non-public materials) developed or acquired by a party prior to the Original Effective Date or independently developed by such party during or after the term of this Agreement.

 

 

“Intellectual Property Rights” means, on a worldwide basis, all patents (including originals, divisionals, continuations, continuations-in-part, extensions, foreign applications, utility models and re-issues), patent applications, copyrights (including all registrations and applications therefore), trade secrets, service marks, trademarks, trade names, trade dress, trademark applications, moral rights, and any and all other proprietary and intellectual property rights.

 

“Duplexer” means a finished duplexer component suitable for potential incorporation into a Skyworks FEM, which incorporates a Resonant Duplexer Die design realized on an acoustic wave substrate material.  For clarity, during the development of the Duplexer, the term “Duplexer” includes such development-stage Duplexer even though it is not finished.

 

“Duplexer Die” means a finished, patterned Resonant duplexer die design realized on an acoustic wave substrate material suitable for potential incorporation into a Duplexer.

 

 “Selected Band” means the band mutually agreed upon by the parties pursuant to this Agreement.

 

2.                                      Development.

 

(a)                                 Resonant and Skyworks shall each diligently perform the actions and tasks assigned to them respectively, and substantially on the schedule set forth on Exhibit A attached hereto.  The schedule will commence on the earlier of October 1, 2013 or as soon as practicable following the closing of Resonant’s private financing.  If Resonant and Skyworks mutually agree, they may execute Statements of Work (each an “SOW”) to further supplement Exhibit A, including to describe (i) contributions of Proprietary Technology and other resources by each of Skyworks and Resonant; (ii) adjustments to the anticipated timing for completion of each milestone set forth on Exhibit A (each, a “Milestone”); (iii) adjustments to specifications and/or acceptance criteria for the Duplexer to be developed in connection with such Milestone; (iv) additional Milestones; and (v) any adjustments to funding commitments related to the Development Project set forth on Exhibit B.  However, no such additional SOW is required or a condition to the obligations in this Agreement or as a condition to commencement of the Development Project, unless agreed mutually in an SOW.  If an SOW is entered, each such SOW shall automatically be deemed attached to this Agreement as a supplement to Exhibit A upon execution thereof by Skyworks and Resonant without additional action required.  Any such mutually executed SOW shall govern such aspects of the development process as specified therein and shall, to the extent stated expressly therein, supersede and replace specified terms of Exhibit A.  Any amendments or revisions to any SOW that may be entered shall be mutually agreed to by the parties to the SOW in writing.

 

(b)                                 Each of the parties agrees to be responsible for its own costs relating to its negotiation of and performance under this Agreement, except as may be expressly set forth in a mutually agreed to SOW.

 

(c)                                  Within five (5) days following execution of this Agreement, Resonant and Skyworks shall each identify no less than two (2) representatives who will be dedicated to the Development Project (the “Development Team”).  Personnel comprising the Development Team shall have the requisite knowledge and expertise necessary to carry out the respective obligations of the parties on Exhibit A and be reasonably familiar with the technology to be used in connection therewith.  Any party can change its members of the Development Team upon written notice to the other party so long as such new personnel meet the requirements of this sub-paragraph 2(c).

 

3.                                      Testing.  Upon completion of each Milestone, the Development Team for Resonant shall notify the Development Team for Skyworks in writing, and Skyworks shall have thirty (30) days (the “Test Period”) from the date of such notice to evaluate whether the Milestone has been met and/or test the applicable Duplexer, with Resonant’s Development Team’s full cooperation and assistance.  If Skyworks determines that the Milestone and/or the applicable Duplexer  does not conform to the specifications, success criteria, or requirements that are set forth in Exhibit A (or, if applicable, an SOW) and on Exhibit C (each such failure, a “Defect”), Skyworks shall promptly notify the Resonant Development Team of such Defects in writing (the date of such notice, the “Resonant Defect Notice Date”) and provide all reasonable information and data concerning its determination that may be useful to Resonant in correcting the Defects.  The Development Team for Resonant will make appropriate corrections and notify the Development Team for Skyworks when the corrections are complete.  The Test Period shall be extended by an additional thirty (30) days to allow correction of such Defects and to allow for re-testing.  If and when Skyworks verifies that the Milestone has been met and/or the applicable Duplexer is free from all Defects, Skyworks shall promptly notify the Resonant Development Team in writing and such notification shall constitute “Acceptance.”  If, on the other hand, Resonant is unable to correct all Defects within thirty days (30) business days following the Resonant Defect Notice Date, Skyworks’s sole remedy and recourse for such failure and Defect shall be to terminate this Agreement by delivering written notice to Resonant, which shall become effective 30 days 

 

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after delivery, or to waive the failure in writing and proceed with the Development Project.  If Resonant determines that a Defect or a failure to reach a Milestone is caused to any extent by a failure by Skyworks to perform its obligations set forth on Exhibit A, or due to either fab or duplexer packaging, then Resonant shall promptly notify the Development Team for Skyworks of such fact in writing (the date of such notice the “Skyworks Notice Defect Date”), and provide all reasonable information and data concerning its determination that may be useful to Skyworks in correcting such matters.  The Development Team for Skyworks will make appropriate corrections (including by working with the fab or packager) and notify the Development Team for Resonant when the corrections are complete.  If Skyworks is unable to correct all such matters within thirty (30) business days following the Skyworks Defect Notice Date, Resonant’s sole remedy and recourse for such failure shall be to terminate this Agreement by delivering written notice to Skyworks, which shall become effective 30 days after delivery, or to waive the failure in writing and proceed with the Development Project.  Following any such termination, none of the parties shall have any further liability to the other and this Agreement, including all exclusivity provisions, shall terminate except for the confidentiality obligations of Section 6 which shall survive such a termination.  Commencement of each Milestone following the first Milestone is expressly conditioned upon successful completion of the immediately preceding Milestone as evidenced by Acceptance of the applicable preceding Milestones and any applicable Duplexer.

 

4.                                      Intellectual Property; Exclusivity; Commercial License Minimum Terms.

 

(a)                                 Proprietary Technology.  As between the parties, each party exclusively owns all right, title and interest in and to its Proprietary Technology.  Subject only to the licenses granted herein, the parties agree that the design, schematic and/or layout of the Duplexer Die and all Intellectual Property Rights therein are deemed part of Resonant’s Proprietary Technology and not, and will not become by this Agreement, the Proprietary Technology of Skyworks. Notwithstanding anything in this Agreement to the contrary, the parties agree that the design specifications for the Development Project (including, without limitation, the Duplexers and filters) and all Intellectual Property Rights therein are deemed part of Skyworks Proprietary Technology and not, and will not become by this Agreement, the Proprietary Technology of Resonant.

 

(b)                                 Development License.  Each party shall have the right to access and use the other party’s Proprietary Technology solely to the extent necessary to perform their obligations under this Agreement; provided, however, that (i) all Proprietary Technology disclosed hereunder shall be subject to obligations of confidentiality under Section 6, and (ii) neither party shall have the right to use the other party’s Proprietary Technology except as contemplated under this Agreement.

 

(c)                                  Improvements to Skyworks Proprietary Technology.  Skyworks will exclusively own all rights, title and interest in and to any improvements, modifications, enhancements, adaptations, extensions to, or derivative works based upon Skyworks Proprietary Technology whether developed by Skyworks or Resonant or jointly by Skyworks and Resonant pursuant to this Agreement (collectively, “Skyworks Proprietary Technology Improvements”), including all Intellectual Property Rights therein.  Resonant hereby irrevocably transfers and assigns to Skyworks and agrees to irrevocably transfer and assign to Skyworks all rights, title and interest in and to all Skyworks Proprietary Technology Improvements, including all Intellectual Property Right therein, and such items shall thereafter be deemed part of the Skyworks Proprietary Technology.

 

(d)                                 Improvements to Resonant Proprietary Technology.  Resonant will exclusively own all rights, title and interest in and to any improvements, modifications, enhancements, adaptations, extensions to, or derivative works based upon Resonant Proprietary Technology whether developed by Resonant or Skyworks or jointly by Resonant and Skyworks pursuant to this Agreement (collectively, “Resonant Proprietary Technology Improvements”), including all Intellectual Property Rights therein.  Skyworks hereby irrevocably transfers and assigns to Resonant and agrees to irrevocably transfer and assign to Resonant all rights, title and interest in and to all Resonant Proprietary Technology Improvements, including all Intellectual Property Right therein, and such items shall thereafter be deemed part of the Resonant Proprietary Technology.  Without limitation of this Section 4(d), Exhibit D, section 4 is deemed incorporated to this paragraph by reference.

 

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(e)                                  Further Assurances.  Each party shall, and shall cause its employees and agents to, sign, execute and acknowledge or cause to be signed, executed and acknowledged without costs at the expense of the other party, any and all documents and perform such acts as may be reasonably requested by the other party for the purposes of perfecting the foregoing assignments and obtaining, enforcing and defending the Intellectual Property Rights related thereto.

 

(f)                                   Exclusivity.  Unless this Agreement is earlier terminated in accordance with its terms (in which case the covenant in this Section 4(f) will end at the effective date of such termination), Resonant will not contract to sell rights to Resonant-designed filters for the Selected Band in connection with any application similar to mobile front end modules or antenna switch modules, except to Skyworks during the period commencing on the date hereof and ending on ***** months after the Completion (as defined in Section 4(g)) of the Development Project.

 

(g)                                  Commercial License.  Upon successful completion of the first four Milestones in Exhibit A (or earlier if agreed by the parties) (“Completion”), in the event that Skyworks wishes to obtain distribution or related rights to the Duplexer developed in the Development Project based substantially on the specifications provided pursuant to this Agreement for the Selected Band (the “Project Duplexer”), Resonant and Skyworks shall, starting promptly after Completion use their commercially reasonable efforts to negotiate and enter into a license agreement in which Resonant grants such rights to Skyworks (the “Commercial License”).  The Commercial License shall contain the minimum terms set forth in Exhibit D to this Agreement, together with such other terms as the parties may mutually agree.  If Resonant and Skyworks cannot agree to the Commercial License within 45 days after Completion, then the sole remedy and recourse of each party is to terminate this Agreement (and all exclusivity provisions hereof), effective upon notice to the other party (without prejudice to any other termination rights that may exist hereunder).  Resonant and Skyworks agree that the minimum terms, including royalty terms, set forth in Exhibit D and to be included in the Commercial License apply solely to the Project Duplexer, and that neither Skyworks nor Resonant are bound by such terms with respect to any Duplexer other than the Project Duplexer (even if developed contemporaneously during the Development Project), nor bound to enter into any other commercial agreement or license with respect to any other such Duplexer.

 

5.                                      Payment.  [Intentionally Omitted]

 

6.                                      Confidential Information.

 

(a)                                 The parties acknowledge and agree that the existing Mutual Non-Disclosure Agreement between Skyworks and STI dated April 22, 2008 is hereby superseded and replaced in its entirety solely with respect to any and all disclosures made on or after the Original Effective Date but shall remain in full force and effect with respect to any prior disclosures or disclosures unrelated to this Agreement.

 

(b)                                 Any Recipient(s) of Confidential Information disclosed pursuant to this Agreement agrees to treat the Confidential Information as a trade secret under the law and shall protect the Confidential Information by using the same degree of care, but no less than a reasonable degree of care, to prevent the unauthorized use, disclosure, dissemination or publication of the Confidential Information as the Recipient(s) uses to protect its own comparable confidential and proprietary information.  Recipient(s) shall limit the disclosure of Confidential Information to its employees, agents, contractors and representatives having a need-to-know and who are bound by terms and conditions of confidentiality no less restrictive than the terms contained in this Agreement.  Any reproduction of Confidential Information, in whole or in part, shall contain all confidential or proprietary legends that appear on the original.  Upon receipt of the written request of the Discloser(s), Recipient(s) will return, or give written certification of the destruction of all Confidential Information in any tangible or digital form, including all copies that are in Recipient(s)’s possession or control.  Recipient(s) will immediately notify Discloser(s) in writing in the event of any loss or unauthorized disclosure of Confidential Information.  The terms of this Agreement shall constitute Confidential Information.

 

 

***** Confidential material redacted and filed separately with the Securities and Exchange Commission.

 

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(c)                                  The information shall not be deemed Confidential Information under this Agreement if such information:

 

(i)  is or becomes known in or accessible to the public domain without breach of this Agreement;

 

(ii)  is in the possession of the Recipient(s) without restriction at the time of disclosure;

 

(iii)  is used or disclosed with prior written approval of Discloser(s);

 

(iv)  is independently developed by the Recipient(s) without breach of this Agreement or access to Confidential Information; or

 

(v)  is or becomes known to the Recipient(s) without restriction and without breach of this Agreement or any other agreement;

 

(d)  Subject to the license granted in Section 4(b), each party agrees that it will not itself, or through any parent, subsidiary, affiliate, agent or other third party:

 

(i)  sell, lease, license, sublicense, encumber or otherwise transfer any portion of any other party’s Confidential Information or Proprietary Technology (collectively, “Proprietary Materials”);

 

(ii)  decompile, disassemble, or reverse engineer any Proprietary Materials of any other party, unless and to the extent required under national law; or

 

(iii)  use the Proprietary Materials of any other party to for any purpose other than as expressly contemplated by this Agreement, including to provide services to any third party; or

 

(iv)  provide, disclose, divulge or make available to, or permit use of the Proprietary Materials by any third party without Discloser(s)’s prior written consent.

 

(e)                                  Notwithstanding that this Agreement shall have terminated or expired, the parties agree to keep in confidence and prevent the disclosure of Confidential Information to any outside person or persons for a period of five (5) years from date of first receipt of such Confidential Information or such longer period of time as may be required by law.

 

(f)                                   Discloser(s) warrants it has the right to disclose such Confidential Information in accordance with the terms of this Agreement.

 

(g)                                  Notwithstanding this Section 6, any party hereto shall be entitled to publicly summarize and publicly file this Agreement as required by the rules and regulations of the Securities and Exchange Commission (or any national securities exchange) applicable to such party (with such determination to be made in the sole good faith discretion of the party subject to the requirement); provided the party subject to such requirement shall use its reasonable efforts to redact from any such public filing or public summary all pricing, technical and other sensitive commercial information, as it determines, to the extent permissible under SEC rules for FOIA exemption requests, seeking a period of non-disclosure of at least 5 years.

 

7.                                      Right of First Negotiation.  If Resonant’s board of directors proposes to sell Resonant to a non-affiliate (STI excluded), then Resonant will notify Skyworks of such proposal before it makes such proposal to any such non-affiliates (other than STI).  If Skyworks notifies Resonant within 20 days of receiving the notice from Resonant that it is interested in potentially acquiring Resonant, then Resonant and Skyworks will in good faith negotiate for 45 days regarding a sale of Resonant to Skyworks, starting on the date Resonant receives such notice from Skyworks (the “Right of First Negotiation”).  If, in their respective sole and absolute discretion they are unable to enter a definitive acquisition agreement in such 45 day period, then Resonant is free to market and sell itself to any party free of the Right of First Negotiation, and without further notice to Skyworks.  The Right of First Negotiation will only “reset” (i.e., again be triggered) if Resonant’s board of directors determines in its sole business judgment that the sale process which triggered the Right of First Negotiation is to be terminated, and then it later commences a new sale process.  All of Skyworks rights under this Section 7 (including any then pending Right of First Negotiation) shall automatically terminate on the earlier to occur of (a) the termination of this Agreement or (b) an initial public offering of Resonant’s securities (including via reverse merger into 

 

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public shell or other transaction using an affiliate of Resonant that achieves substantially the same result of an IPO or reverse merger).  Skyworks will not interfere with any proposed sale to another party provided only that Resonant has complied with this Right of First Negotiation.  For clarity, the Right of First Negotiation does not apply to a sale by the shareholders of Resonant of their shares, but rather only a transaction to which Resonant itself is a party.  Except as expressly set forth in this Section 7, Resonant has no obligation to discuss or negotiate with Skyworks, or notify Skyworks regarding, any transaction involving a sale of or other extraordinary transactions involving Resonant.

 

8.                                      Term and Termination.

 

(a)                                 Unless terminated earlier by a termination right set forth herein, this Agreement will commence on the Original Effective Date and continue for an initial term of three (3) years following the New Effective Date (the “Initial Term”).  Thereafter, the Agreement will automatically renew for one-year periods and remain in full force and effect, until either party provides written notice to each of the other parties of its intent to terminate the Agreement at least sixty (60) calendar days prior to the expiration of the then-current term (each, a “Renewal Term” and with the Initial Term, the “Term”).  In addition to the other termination rights set forth herein, this Agreement may be terminated prior to the expiration of the Term by Skyworks or Resonant pursuant to Section 3 or Section 4 or by any party upon written notice following any material breach of this Agreement by any other if such breach has not been remedied within thirty (30) days of such breaching party’s receipt of such written notice.

 

(b)                                 Termination of this Agreement will not affect the provisions which the parties intended to survive including, without limitation, provisions regarding a party’s treatment of Confidential Information which provisions will survive termination of this Agreement.

 

(c)                                  Within fourteen (14) days after the date of termination or discontinuance of this Agreement for any reason whatsoever, each party shall return any Confidential Information of the other party in its possession and all copies thereof, in whole or in part (except to the extent required to a generally applicable document retention policy, provided the provisions of this Agreement shall continue to apply per their terms to such retained documents).

 

9.                                      Warranties; Disclaimer.

 

(a)                                 Each party represents and warrants to each other party as follows:  (i) it is an entity duly organized, validly, existing and in good standing under the laws of the jurisdiction of its formation and has the corporate power to own its assets and properties and to carry on its business as currently conducted; (ii) this Agreement is the legal, valid and binding obligation of such party, enforceable in accordance with its terms; and (iii) the execution, performance and delivery of this Agreement by such party will not conflict with or violate or result in any breach of, or constitute a default under, any contract, agreement or other obligation of such party.

 

(b)                                 In addition, Resonant and Skyworks each represents and warrants that: (i) they have the right to grant the rights granted herein; (ii) the use of their Proprietary Technology in the form as delivered under this Agreement will not infringe any Intellectual Property Rights of any third party; and (iii) Resonant and Skyworks has not granted any written or oral licenses in, to, or for their Proprietary Technology that would interfere with their performance under this Agreement.

 

(c)                                  EXCEPT AS OTHERWISE SET FORTH IN THIS AGREEMENT OR IN ANY SOW, NONE OF THE PARTIES MAKES, AND EACH EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED WITH RESPECT TO ANY PROPRIETARY TECHNOLOGY OR CONFIDENTIAL INFORMATION, ITS QUALITY, ITS PERFORMANCE, MERCHANTABILITY, NON-INFRINGEMENT, OR FITNESS FOR A PARTICULAR PURPOSE.

 

10.                               Indemnification.  Resonant and Skyworks, on behalf of itself, its respective employees and agents (each an “Indemnifying Party”) agrees to defend, indemnify and hold harmless the other and its affiliates, and their respective employees, officers, directors and agents (each an “Indemnified Party”) against all costs and expenses of the Indemnified Party (including reasonable attorneys’ fees) and all damages of the Indemnified Party arising from or in connection with any third party claim or demand based on (a) any negligent acts, omissions, or willful misconduct of the Indemnifying Party, (b) any breach by the Indemnifying Party of this Agreement, (c) any violation of a third party’s Intellectual Property Rights by the Indemnifying Party or its Proprietary Technology, (d) any failure of the Indemnifying Party of any applicable law, rule or regulation; or (e) any death, bodily injury or property damage caused or incurred by the Indemnifying Party.  To qualify for the above indemnities, the Indemnified Party shall provide the Indemnifying Party with

 

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timely written notice regarding the claim such that the timing of the notice does not prejudice the Indemnifying Party’s ability to defend or settle the claim. The Indemnifying Party may, at its option, have sole control over the defense and settlement of any action arising under this section, and the Indemnified Party shall cooperate with such defense at the Indemnifying Party’s expense.  Notwithstanding the foregoing, the Indemnified Party shall have the right to be represented by, and have counsel appear, at its own expense, with respect to any such claim.  Skyworks agrees that STI has no liability or responsibility for any actions, errors, omissions or breaches of Resonant or its officers, directors or agents, whether based on a control theory, privity theory or otherwise, and STI is an intended beneficiary of this sentence.

 

11.                               Independent Development.  Each party understands that each other party may currently or in the future be developing information internally, or receiving information from third parties that may be similar to the Confidential Information.  Accordingly, nothing in this Agreement will be construed as a representation or inference that any party will not develop products, or have products developed for it, or enter into joint ventures, alliances, or licensing arrangements that, without violation of this Agreement, compete with the products or systems embodying the Confidential Information.  Notwithstanding anything herein to the contrary, no license rights under any party’s Intellectual Property Rights are granted by implication, estoppel or otherwise by virtue of this section; nor shall anything in this Agreement restrict Recipient’s discretion to transfer or assign its personnel, providing the obligations of Recipient under this Agreement are otherwise met.

 

12.                               Agreement with Filter Manufacturer.  If and when the parties enter into an agreement with the selected filter manufacturer, the parties will endeavor to include in such agreement provisions relating to intellectual property and confidentiality matters which are substantially equivalent to the provisions in Sections 4(a)-(e) and 6 of this Agreement.

 

13.                               General.

 

(a)                                 The Recipient(s) of Confidential Information under this Agreement acknowledges its obligations to control access to technical data under the U.S. Export Administration laws and regulations and agrees to adhere to such laws and regulations with regard to any Confidential Information received under this Agreement.  Without limitation, Recipient(s) will not export (or re-export) or disclose Confidential Information, and will not disclose Confidential Information to a person who is not a U. S. citizen, except as permitted by the laws and regulations of the United States.

 

(b)                                 All notices or correspondence pertaining to this Agreement shall be addressed and sent as follows:

	
 

Skyworks Solutions, Inc.
    	
 

Resonant LLC
    
	
 

5221   California Ave.
   Irvine, CA  92617 USA
   Attention:  Legal Department
    	
 

460   Ward Drive, Suite D
   Santa Barbara, CA 93111
   Attention: Resonant Chief Executive Officer

 
    

 

(c)                                  This Agreement shall be governed by and interpreted in accordance with the laws of the State of California without regard to the conflicts of laws provisions of that State.  Each party submits to the jurisdiction of the California, U.S. state and U.S. Federal courts.

 

(d)                                 No party to this Agreement may assign, transfer or delegate all or any part of its rights or obligations under this Agreement without the prior written consent of all other parties, except to an affiliate or an entity that succeeds to all or substantially all of the business assets of such party and in such event only if such entity agrees to be bound by this Agreement.  Any attempted assignment or delegation without such consent, except as expressly set forth herein, will be void.  Notwithstanding the foregoing, no consent of Skyworks shall be necessary for any assignment or delegation in connection with, or that may be deemed to arise, from a sale of all or substantially all of Resonant’s assets, or upon any sale of a majority ownership of Resonant (whether via sale by shareholders or issuance by Resonant) or upon a merger of Resonant provided, however, that the Agreement may not be assigned or transferred to a party Skyworks reasonably determines to be a competitor with respect to cellular frontend module products that are the subject matter of this Agreement.

 

(e)                                  Any amendment to, or waiver or modification of, this Agreement must be made in writing and signed by all parties.

 

(f)                                   This Agreement has been executed by the duly authorized representatives of all parties whose signatures appear below.  This Agreement may be executed in any number of separate counterparts, each of which shall be

 

-7-

 

deemed to be an original, but which together shall constitute one and the same instrument.  This Agreement may be executed by fax.

 

(g)                                  If any term, condition, or provision in this Agreement is found to be invalid, unlawful or unenforceable to any extent, the parties shall endeavor in good faith to agree to such amendments that will preserve, as far as possible, the intentions expressed in this Agreement. If the parties fail to agree on such an amendment, such invalid term, condition or provision will be severed from the remaining terms, conditions and provisions, which will continue to be valid and enforceable to the fullest extent permitted by law.

 

(h)                                 This Agreement is intended to supersede and replace the Original Agreement in its entirety.  This Agreement constitutes the entire agreement of Skyworks and Resonant with respect to the subject matter hereof and supersedes all other prior and contemporary oral and written agreements and understandings.  In the event of a conflict between the terms of the main body of this Agreement and any Exhibits to this Agreement (including any SOW which is deemed attached as an Exhibit) (i) the terms of the main body of this Agreement shall prevail over the terms of any Exhibits; and (ii) the latest executed SOW shall prevail over any earlier SOW and over any other Exhibit.

 

(i)                                     Resonant, on the one hand, and Skyworks, on the other hand, are independent contractors, are not related and shall not be construed and shall not hold themselves out to be co-employers, joint venturers, partners or any other relationship other than independent contractors.

 

(j)                                    This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument; however, this Agreement will be of no force or effect until executed by all parties.

 

 

	
Skyworks Solutions, Inc.
    	
 
    	
Resonant LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   James P. Young
    	
 
    	
 
    	
By:
    	
/s/   Terry Lingren
    	
 
    
	
Name:   
    	
 James   P Young
    	
 
    	
Name:   
    	
 Terry   Lingren
    
	
Title:   
    	
 VP   of Engineering
    	
 
    	
Title:   
    	
 Chief   Executive Officer
    
	
Date:   
    	
 May 9,   2013
    	
 
    	
Date:   
    	
 May 9,   2013
    
							

 

-8-

 

 

EXHIBIT A

 

SOW

 

Milestone 1 – Resonators - duration ***** months

	
 Resonant   responsibilities
    	
 Skyworks   responsibilities
    
	
 Select filter band
    	
 Select filter band
    
	
 Design resonators
    	
 Provide requirements &   specs for the duplexer
    
	
 Design filters
    	
 Select filter manufacturer
    
	
 Layout and mask
    	
 Fund the fabrication of the   filter
    
	
 Fab and measure resonators   (and filters)
    	
 
    
	
 Interface with the filter   manufacturer
    	
 Facilitate interface with   filter manufacturer
    

 

In the first Milestone Resonant and Skyworks will mutually agree on the duplexer band to be developed.  Skyworks will provide the target specification for the agreed upon band, select the filter manufacturer, facilitate discussions between Resonant and the filter manufacturer, and facilitate having the filter die fabricated and packaged to Resonant’ s design.  Resonant will determine the resonator properties required to meet the filter performance specification.  Resonant will also design the resonators and filters, consistent with the filter manufacturer’s manufacturing requirements.  Skyworks will provide the funds necessary to purchase masks and fabricate the filter structures consistent with Skyworks’ agreement with the filter manufacturer.  After the filter die are fabricated, Resonant will measure them and provide the data to Skyworks.

 

Milestone 2 – Filters - duration ***** months - Milestone 2

 

	
 Resonant   responsibilities
    	
 Skyworks responsibilities
    
	
 Design and fab filters
    	
 
    
	
 Design duplexers
    	
 
    
	
 Layout filter die and design   packaged duplexer 
    	
  Fund the fabrication of the filter
    
	
 Measure filters (and   duplexers)
    	
 
    
	
 Interface with the filter   manufacturer
    	
 Facilitate interface with   filter manufacturer
    
	
 
    	
 
    

 

In the second Milestone, Resonant will design the resonators, filter and packaged duplexer consistent with the filter manufacturer’s manufacturing requirements.  Also, initial duplexer designs will inform the filter design.  Skyworks will provide the funds necessary to purchase masks and fabricate the filter structures consistent with Skyworks’ agreement with the filter manufacturer.  During this Milestone, Skyworks will facilitate having the filter manufactured to Resonant’s design.  After the filters and test structures are fabricated, Resonant will measure them and provide the measured performance data along with samples to Skyworks.

 

 

***** Confidential material redacted and filed separately with the Securities and Exchange Commission.

 

 

Milestone 3 – Duplexer - duration ***** months - Milestone 3

 

	
 Resonant   responsibilities
    	
 Skyworks   responsibilities
    
	
 Design and fab duplexers
    	
 
    
	
 Layout filter die and  packaged duplexer design
    	
 Fund the fabrication of the   filter
    
	
 measure duplexer
    	
 Perform preliminary   qualification testing on duplexer
    
	
 Interface with the filter   manufacturer
    	
 Facilitate interface with   filter manufacturer
    
	
 
    	
 
    

 

In the third Milestone, Resonant will design the resonators filter, and packaged duplexer consistent with the filter manufacturer’s manufacturing requirements.  Skyworks will provide the funds necessary to purchase masks and fabricate the filter structures consistent with Skyworks’ agreement with the filter manufacturer.  During this Milestone Skyworks will facilitate having the filter manufactured to Resonant’s design.  After the filters and test structures are fabricated, Resonant will measure them and provide the measured performance data including a compliance matrix and samples to Skyworks.  Also Skyworks will perform preliminary qualification tests (including ruggedness testing) on packaged Duplexers.

 

Milestone 4 – Duplexer to Specification - duration ***** months - Milestone 4

	
 Resonant   responsibilities
    	
Skyworks responsibilities
    
	
 Iterate duplexer
    	
 
    
	
 Layout filter die and packaged   duplexer design
    	
 
    
	
 Spec compliant packaged   duplexer
    	
Full   electrical testing of duplexer (environment, linearity, etc)
    

 

In the fourth Milestone, Resonant will design the resonators filter, and packaged duplexer consistent with the filter manufacturer’s manufacturing requirements.  Skyworks will provide the funds necessary to purchase masks and fabricate the filter structures consistent with Skyworks’ agreement with the filter manufacturer.  Skyworks will facilitate having the filter manufactured to Resonant’s design.  After the filters and test structures are fabricated, Resonant will measure them and provide the measured performance data including a compliance matrix and samples to Skyworks.  At this milestone the duplexer performance is expected to be compliant.  Skyworks will perform full electrical testing of the duplexer product and provide the data to Resonant.  Skyworks will also complete or rerun any qualification tests as needed to qualify the design.

 

Milestone 5 – Selection for high volume - duration ***** months - Milestone 5

 

	
 Resonant   responsibilities
    	
 Skyworks   responsibilities
    
	
 Iterate design if needed for   particular requirements
    	
 Provide information to design   teams
    

 

In the fifth Milestone, the design approach will compete with other products for inclusion into a high volume product.  Iterations of the design to accommodate particular product requirements are possible.

 

 

***** Confidential material redacted and filed separately with the Securities and Exchange Commission.

 

 

EXHIBIT B

 

 

Milestone:

 

 

I)                Skyworks to fund fabrication and packaging of filters.  Resonant to perform characterization data on filter resonators against filter requirements

 

 

II)            Skyworks to fund fabrication and packaging of filters.  Resonant to sample filter with an agreed upon level of performance.  Need not be fully compliant but must be good enough that the device can be used in a module and run through selected prequalification testing.

 

This performance is defined as:

 

*****

 

III)        Skyworks to fund fabrication and packaging of filters.  Resonant to sample filter with an agreed upon level of performance.  Need not be fully compliant but must be good enough that the device can be used in a module, run through qualification testing and provide viable customer samples.

 

This performance is defined as:

 

*****

 

IV)       Skyworks to fund fabrication and packaging of filters.  Resonant to sample filter fully compliant.

 

 

Royalty Structure:

 

See Exhibit D

 

 

***** Confidential material redacted and filed separately with the Securities and Exchange Commission.

 

 

EXHIBIT C

 

Specification

 

TBD based on Skyworks and Resonant agreement of the duplexer band.  Below is a ***** example.

 

*****

 

Typical examples of expected ***** performance:

 

*****

 

 

***** Confidential material redacted and filed separately with the Securities and Exchange Commission, including the remaining 4 pages of Exhibit C.

 

 

EXHIBIT D

 

MINIMUM TERMS FOR COMMERCIAL LICENSE OF DUPLEXER

 

The Commercial License shall contain the following Minimum Terms.  No additional substantive terms shall apply unless mutually agreed upon in writing by the parties.

 

1.             Definitions:  “Licensed Product” shall mean any and all Project Duplexers offered by Skyworks or its sublicensees which incorporate in whole or in part, Resonant Proprietary Technology.

 

2.             License.  Upon the agreement of the parties to proceed with Skyworks’ manufacturing or use of the Project Duplexer in any commercial applicable or first sale thereof, Resonant shall grant Skyworks a worldwide license to develop, make, have made, use, offer to sell, sell and have sold the Licensed Products (including the right to grant sublicenses as necessary to make or have made Licensed Products as contemplated hereunder), solely as embodied in the Project Duplexer.

 

3.             New Developments and Ownership.  Each filter die design/schematic/layout will be specific to a particular Skyworks specification, and to a particular FAB.  Resonant will exclusively own and control each such filter die design/schematic/layout.  Any changes will be made by Resonant if a new FAB is brought in by Skyworks, or if Skyworks wishes to address some other aspect of the filter die design to improve it, such as power handling, reliability, cost, etc.   The parties agree that this Agreement, including Royalty, and the Licensed Product, pertains solely to the particular Skyworks Project Duplexer set forth in this Agreement and its Exhibits.

 

4.             Pricing.  Skyworks shall pay Resonant the royalties set forth on the table below for Licensed Products sold hereunder (whether by Skyworks or any sublicensee) (the “Royalty”).  The Royalty shall commence on the first date of production of a Licensed Product.  Royalties shall be paid within forty-five (45) days after the close of a given calendar quarter, and shall include reports substantiating the amounts owed.  Skyworks shall keep complete and accurate records pertaining to the sale, use or other disposition of Licensed Products in reasonable detail to permit Resonant to confirm the accuracy of the royalty payments due hereunder, and Resonant shall have the right to audit such books and records under terms agreed to by the parties in the Commercial License.

 

	
Quantity
    	
Royalty
    
	
 
    	
 
    
	
*****
    	
*****
    
	
 
    	
 
    
	
*****
    	
*****
    
	
 
    	
 
    
	
*****
    	
*****
    
	
 
    	
 
    
	
*****
    	
*****
    

 

 

5.             Term and Termination.  The Term of the Commercial License shall be ***** to ***** years from the date of execution of the Commercial License.  The parties will have termination rights in the event of material breach, bankruptcy, and any other matters to be set forth in the Commercial License.  Upon termination or expiration of the

 

 

***** Confidential material redacted and filed separately with the Securities and Exchange Commission.

 

 

Commercial License, all licenses granted by the parties hereunder shall terminate.  Such license (including all Royalty and other terms) shall continue in effect after the Commercial License is terminated or expires with respect to any Skyworks’ products containing Project Duplexers in production at the time of termination or expiration.

 

6.             Indemnification.  Resonant shall indemnify for third party claims against Skyworks alleging that the Resonant Proprietary Technology, as embodied in the Duplexer Die licensed under the Commercial License, violates third party intellectual property rights.  Skyworks shall indemnify for third party claims against Resonant alleging that any Skyworks Proprietary Technology that may be embodied in a Duplexer Die licensed under the Commercial License (including the implementation of such a Duplexer Die or the combination of such a Duplexer Die with other Skyworks Proprietary Technology), violates third party intellectual property rights.  Such indemnification shall include other standard terms and restrictions appropriate for provisions of this type.

 

7.             Other Terms.  The Commercial License shall include such other terms regarding warranties, disclaimers, confidentiality, limitations of liability and such other related matters as the parties may mutually agree, and as are common for agreements of this type.

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