Document:

[Exhibit 10.5]

 

PATENT LICENSE AGREEMENT

 

THIS PATENT LICENSE AGREEMENT (the "Agreement") is made and entered into as of January 26, 2009 (the "Effective Date") by and between: Advanced MicroSensors, Inc., a Delaware corporation, having a principal place of business at 333 South Street, Shrewsbury, Massachusetts 01545, USA ("AMS" or "Licensor"), and SPINIC, Inc., a China-based corporation, having a principal place of business at 1 Zhongnan Road, Yichang City, Fubei Province 443003, P. R. China("SPINIC" or "Licensee"). Licensor and Licensee are sometimes referred to in this Agreement collectively as the "Parties" and individually as a "Party".

 

Background

 

A.            SPINIC, Inc., a startup company, is aiming at developing, manufacturing and selling spintronic devices including sensor, data couplers and MRAMs.

 

B.            SPINIC, Inc. desires AMS (Advanced MicroSensors, Inc.) to grant it the right in using the currently pending AMS patent titled "Giant Magneto-resistive resistor and sensor apparatus and method". (Patent application number 111763,560, hereinafter referred as "Licensed Patent".)

 

C.            AMS agrees to grant this license to SPINIC, Inc.  The license will be a non-exclusive, non-transferable, perpetual, and royalty free license to design, manufacture and sell products using the information in the patent. Further, the Parties desire to make certain other promises and covenants to each other, all as set forth in this Agreement.

 

IN CONSIDERATION of the mutual promises and obligations of the Parties hereinafter set forth, Licensor and Licensee agree as follows:

 

	
1. 

	
License Grant.

 

	
1.1

	
Licensor hereby grants to Licensee, and Licensee hereby accepts from Licensor, a non-exclusive, non-transferable, perpetual (except in case of a material breach by Licensee of the terms hereof) and royalty free license under the Licensed Patent Claims, to make, have made, develop, use, sell, offer to sell, have sold, lease, import, export globally and otherwise dispose of the Licensed Product, and to sublicense through multiple tiers to Licensee's customers to use, sell, and offer to sell the Licensed Product globally.

 

	
2. 

	
Device Manufacture Using the License.

  

 

  

 

CONFIDENTIAL

 

	
2.1

	
SPINIC agrees to use AMS as its exclusive foundry for developing and manufacturing any product that incorporates the licensed technology for three years, starting on the date of First Revenue Shipment of the first product using the licensed technology. AMS services will be performed for SPINIC pursuant to AMS's standard terms and conditions. After three years, SPINIC may continue to choose AMS as one of its foundries depending on its manufacture cost competitiveness.

 

	
2.2

	
AMS agrees to give SPINIC most competitive rate for device process and manufacture.

 

	
2.3. 

	
SPINIC agrees not to sell GMR-based products to AMS' current customers.

 

	
2.4

	
AMS agrees to treat SPINIC's products with care and to resolve any production issues in a timely manner

 

	
3. 

	
Enforcement.

 

Licensor has the sole right, but not the obligation, to file and control any action for infringement of the Licensed Patent. Any damages awarded in and collected by reason of such lawsuit will belong to Licensor. Licensee agrees: (a) to notify Licensor as soon as possible as to any infringing activity by Third Parties; (b) that it will, to the full extent legally permissible, abstain from any proceedings that may affect the validity of any patents licensed pursuant to this Agreement and (c) Licensee agrees to notify Licensor of any facts which may affect the validity, scope, or enforceability of the Licensed Patents of which Licensee becomes aware.

 

	
4. 

	
Term and Termination.

 

The term of this Agreement will become effective on the Effective Date and will be perpetual.

 

	
5. 

	
Representations and Warranties.

 

Each Party represents and warrants that it has full right, power, and authority to enter into this Agreement, and to perform its obligations and duties under this Agreement. Further, each Party hereto represents and warrants to the other that, as of the Effective Date the execution, delivery and performance of this Agreement has been duly authorized and approved by all necessary corporate action, and no other corporate or shareholder action or other proceeding on the part of such Party or its shareholders is necessary to authorize this Agreement.

 

	
6. 

	
No Warranty.

 

6.1 NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, INCLUDING, WITHOUT LIMITATION, SECTION 5, LICENSEE ACKNOWLEDGES AND AGREES THAT THIS LICENSE IS PROVIDED TO LICENSEE ON AN "AS IS" BASIS, WITHOUT WARRANTY OF ANY KIND. LICENSOR MAKES NO WARRANTY OR REPRESENTATION (WHETHER EXPRESS, OR IMPLIED, OR OTHERWISE) THAT THE LICENSED PATENT IS VALID OR ENFORCEABLE OR THAT ANY MANUFACTURE, SALE, OFFER TO SELL, LEASE, USE OR IMPORTATION OF ANY LICENSED PRODUCT WILL BE FREE FROM INFRINGEMENT OF PATENTS OTHER THAN THOSE LICENSED HEREUNDER. FURTHER, LICENSOR DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

  

2

  

 

CONFIDENTIAL

 

6.2          All statements and representations (other than fraudulent misrepresentations) warranties, terms and conditions (except for those set out in this Agreement) including any implied by statute, common law or otherwise are hereby excluded to the maximum extent permissible by law.

 

	
7. 

	
Limitation of Liability.

 

7.1          UNDER NO CIRCUMSTANCES AND UNDER NO LEGAL THEORY, TORT, CONTRACT, OR OTHERWISE, SHALL LICENSOR BE LIABLE TO LICENSEE FOR ANY DAMAGES OF ANY KIND ARISING OUT OF THIS AGREEMENT, REGARDLESS OF WHETHER THEY ARE DIRECT, INDIRECT, SPECIAL, EXEMPLARY, INCIDENTAL, OR CONSEQUENTIAL DAMAGES INCLUDING WITHOUT LIMITATION, DAMAGES FOR LOST PROFITS, LOSS OF GOODWILL, WORK STOPPAGE, EQUIPMENT FAILURE OR MALFUNCTION, OR ANY OTHER COMMERCIAL DAMAGES OR LOSSES. SUCH LIMITATION WILL APPLY EVEN IF LICENSOR IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

7.2           Licensee shall assume all risks associated with the development, manufacture, use and supply of the Licensed Products and shall be responsible for all Third Party claims relating to the Licensed Products including claims based upon product liability laws and claims in relation to infringement of Third Party intellectual property rights.

 

7.3          Licensor shall have no liability to Licensee whether in contract, tort, negligence or otherwise for any loss or damage arising out of and/or in connection with: (a) any research, development, manufacture, use, distribution or supply of the Licensed Products by or on behalf of the Licensee; and/or (b) any possession or use by a Third Party of the Licensed Products manufactured and/or supplied by or on behalf of the Licensee.

 

7.4          Licensee shall fully indemnify, hold harmless and, at the Licensor's request, defend the Licensor from and against any and all claims, suits, and liabilities or portions thereof and the associated costs and expense, including attorneys' fees, awarded by a court of competent jurisdiction or incurred pursuant to a settlement, which are caused (a) by the Licensee's breach of any term or provision of this Agreement; (b) by any willful, reckless, or negligent act, error or omission by the Licensee, its employees, officers, agents or representatives in the performance of this Agreement and/or (c) by any product of Licensee or any sublicensee of Licensee.

 

	
8. 

	
Entire Agreement.

 

This Agreement, including the schedules attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior writings, instruments and agreements between the parties, whether oral or written, pertaining to such subject matter. It may only be amended by a writing signed by each of the parties.

  

3

  

 

CONFIDENTIAL

 

	
9. 

	
Applicable Law; Arbitration.

 

This Agreement shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of Massachusetts, without regard to its conflict of laws provisions. Any action relating to this Agreement shall be adjudicated by final and binding arbitration (enforceable in any court of competent jurisdiction) before a three-member arbitration panel situated in Boston, Massachusetts USA pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Any refusal to participate in such arbitration or effort to have this Agreement adjudicated in another forum shall be deemed a material breach hereof, provided that injunctive relief in aid of arbitration may be sought in the state or federal courts of the Commonwealth of Massachusetts. Both parties submit to the jurisdiction of such courts.

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by the proper officers as of the Effective Date.

 

	
LICENSOR:

	 	
LICENSEE:

	 	 	 
	
Advanced MicroSensors, Inc.

	 	
SPINIC, Inc.

	  	 	  
	
By:

	
/s/

	 	
By:

	
/s/

	  	 	  
	
Name:

	
Timothy C. Stucchi

	 	
Name:

	
Zhenghong Qian _

	  	  	 	  	  
	
Title:

	
President and CEO

	 	
Title:

	
Chief Technology Officer

	  	  	 	  	  
	
Date:

	
[blank

	 	
Date:

	
01/26/2009

 

521049

  

4[Exhibit 10.6]

 

EQUIPMENT PURCHASE AND USAGE AGREEMENT

 

This EQUIPMENT PURCHASE AND USAGE AGREEMENT (this “Agreement”) is made as of the __1st_ day of _______April_________, 2010 between SPINIC, Inc., a Chinese company with an office at 1 Zhongnan Road, Yichang City, Hubei Province 443003, People’s Republic of China (the “Buyer”), and Advanced MicroSensors, Inc., a Delaware corporation with its principal office at 333 South Street, Shrewsbury, Massachusetts 01545 (the “Seller”).

 

NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereby agree as follows:

 

1.           Sale and Delivery of the Purchased Assets.

 

1.1           Delivery of the Purchased Assets. Subject to and upon the terms and conditions of this Agreement, effective on the Effective Date (as defined in Section 1.3) the Seller hereby sells, transfers, conveys, assigns and delivers to the Buyer, and the Buyer hereby purchases from the Seller, all of Seller’s rights, title and interests in and to all personal property listed on Schedule A hereto (collectively, the “Purchased Assets”).

 

1.2           Further Assurances.  At any time and from time to time after the date hereof and subject to the terms and conditions of this Agreement, at the Buyer’s request and without further consideration, the Seller promptly shall execute and deliver such instruments of sale, transfer, conveyance, assignment and confirmation, and take such other action, as the Buyer may reasonably request to more effectively transfer, convey and assign to the Buyer, and to confirm the Buyer’s title to, all of the Purchased Assets, to assist the Buyer in exercising all rights with respect thereto and to carry out the purpose of this Agreement.

 

1.3           Purchase Price.  The aggregate purchase price for the Purchased Assets is US$1,000,000 (the “Purchase Price”).  The Buyer will pay a deposit of US$500,000 (the “Deposit”) against the Purchase Price by no later than April 15, 2010.  The Buyer will pay the US$500,000 balance of the Purchase Price (the “Balance”) on or before May 15, 2010 (the date of such payment being referred to herein as the “Effective Date”).  All payments  shall be delivered by the Buyer to the Seller on the dates hereof by wire transfer to the account designated by the Seller in Section [8] below.

 

If the Buyer fails to pay the Balance on or before May 15, 2010 for any reason other than a material breach of this Agreement by the Seller that is continuing on such date, the Deposit shall be non-refundable to the Buyer.

1.4           No Assumption of Liabilities. The Buyer does not assume any liabilities or obligations of the Seller, and the Seller shall remain solely liable (as between the Buyer and the Seller) for any and all such liabilities and obligations.

  

1

 

 

1.5           Condition; Disclaimer of Warranties.  The Buyer acknowledges that the Purchased Assets consist of used equipment and related personal property and agrees that it is purchasing each of the Purchased Assets in “as is, where is” condition.  Except as expressly set forth in Section 2 hereof, the Buyer makes no representations or warranties with respect to the Purchased Assets and, without limiting the foregoing, expressly disclaims all warranties (express, implied or otherwise) with respect to the Purchased Assets, including but not limited to any implied warranties of merchantability or fitness for a particular purpose.

 

2.           Representations of the Seller.  The Seller represents and warrants to the Buyer  as follows:

 

2.1           Organization.  The Seller is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation, and has all requisite power and authority (corporate and other) to own its properties, to carry on its business as now being conducted, to execute and deliver this Agreement and to consummate the transactions contemplated hereby.

 

2.2           Authorization.  The execution and delivery of this Agreement by the Seller and the consummation by the Seller of the transactions contemplated hereby have been duly authorized by all requisite corporate and, if necessary, shareholder action.  This Agreement constitutes the valid and legally binding obligation of the Seller, enforceable against the Seller in accordance with its terms.  The execution, delivery and performance by the Seller of this Agreement, and the consummation by the Seller of the transactions contemplated hereby, will not, with or without the giving of notice or the passage of time or both, (a) violate the provisions of any law, rule or regulation applicable to the Seller; (b) violate the provisions of the Certificate of Incorporation or Bylaws of the Seller; (c) violate any judgment, decree, order or award of any court, governmental body or arbitrator; or (d) conflict with or result in the breach or termination of any term or provision of, or constitute a default under, or cause any acceleration under, or cause the creation of any lien, charge or encumbrance upon the Purchased Assets pursuant to, any indenture, mortgage, deed of trust or other instrument or agreement to which the Seller is a party or by which the Seller or any of its properties is or may be bound.  No consents or approvals of third parties (other than any that have been obtained or which will be provided pursuant to this Agreement) are required in connection with the consummation by the Seller of the transactions contemplated by this Agreement.

 

2.3           Ownership of the Purchased Assets.  There are no claims, liabilities, liens, mortgages, security interests, restrictions, prior assignments, pledges, charges, encumbrances and equities of any kind and nature whatsoever affecting or against the Purchased Assets (collectively, the “Encumbrances”).  The Seller is the true and lawful owner of the Purchased Assets, and has the right to sell and transfer to the Buyer good, clear, record and marketable title to the Purchased Assets, free and clear of all Encumbrances of any kind and nature whatsoever. Provided it is possible to register the Buyer as the owner of the Purchased Assets, no matter at present or any time in the future, the Seller shall perform such registration on its own expenses.

 

2.4           Condition of the Purchased Assets.  All of the Purchased Assets are in good operating condition and repair, normal wear and tear excepted and with reasonable allowance for the age of the Purchased Assets, are currently used by the Seller in the ordinary course of business and in the production of products of the Seller, and normal maintenance has been consistently performed with respect to such Purchased Assets.

  

2

 

 

2.5           Compliance with Laws; Regulatory Approvals.  The Seller is not in violation of any law, regulation or ordinance relating to the Purchased Assets.  All consents, approvals, authorizations and other requirements prescribed by any law, rule or regulation and all consents and approvals of third parties which must be obtained or satisfied by the Seller and which are necessary for the execution and delivery by the Seller of this Agreement and the consummation of the transactions contemplated hereby, have been obtained and satisfied.

 

3.           Limited and Discretionary Right to Use Purchased Assets.

 

3.1           Use.  From and after giving effect to the sale of the Purchased Assets by the Seller to the Buyer as provided in this Agreement, the Buyer hereby provides   the Seller the right to use the Purchased Assets for purposes of the Seller providing certain services to (i) the Buyer with respect to the production of certain products for the Buyer and (ii)   third parties.  This limited and discretionary right to use the Purchased Assets is subject to the provisions in Section 3.4.  Notwithstanding the Seller’s right to use the Purchased Assets in accordance with the provisions in this Section 3, the Purchased Assets shall at all times be owned by Buyer.   The Seller agrees to pay the Buyer rent   of $1,000.00 per year for the right to use.  This amount will be payable upon the effective date of the Agreement and each Extended Term as described in Section 3.4.

 

3.2           Repair, Maintenance and Insurance.  While the Seller’s right to use the Purchased Assets as set forth in this Section 3 is in effect, the Seller shall, regardless of whether the Seller actually uses the Purchased Assets during any period, be responsible for and bear the expense of all necessary routine repairs, routine maintenance, operation, and replacements required to be made to maintain the Purchased Assets in good condition, normal wear and tear excepted and with reasonable allowance for the age of the Purchased Assets, it being understood that the Seller shall not be responsible for any cost or expense of repairing or replacing any Purchased Asset should such Purchased Asset experience a fundamental failure or cease to operate notwithstanding the Seller’s performance of its routine repair and maintenance obligations as provided above.  Seller shall keep the Purchased Assets fully insured against all risks of loss or physical damage thereto for the full insurable value thereof, and shall maintain such other insurance thereon in amounts and against such risks as Buyer may reasonably request.

 

3.3           Risk of Loss.  While the Seller’s right to use the Purchased Assets as set forth in this Section 3 is in effect, all risk of loss, damage to or destruction (whether total or partial and even when such loss, damage, or destruction is a result of fortuitous causes or force majeure) of the Purchased Assets shall at all times be on the Seller.  All the Purchased Assets shall remain personal property, and title thereto shall remain in the Buyer exclusively.

 

3.4           Duration of Right to Use Purchased Assets.  The right to use the Purchased Assets shall initially be granted for a one (1) year period beginning on the date hereof (the “Initial Term”).  Unless the Buyer provides the Seller, at least 45 calendar days prior to the expiration of the Initial Term, written notice of the Buyer’s intention to not extend such right beyond the Initial Term, the right to use the Purchased Assets will be extended for an additional one (1) year period (the “Initial Extension”).  The right to use the Purchased Assets will be extended for additional one (1) year periods beyond the Initial Extension unless the Buyer provides the Seller, at least 45 calendar days prior to the expiration of the Initial Extension or then-current subsequent extension, as the case may be, written notice of the Buyer’s intention to not further extend such right (all such extensions, including the Initial Extension, an “Extended Term”).  The determination whether to extend the Initial Term or any Extended Term is in the sole and absolute discretion of the Buyer.

  

3

 

 

3.5           Right of Removal; Repurchase of Purchased Assets.

 

(A)           Subject to the provisions of Section 3.5(B), after the expiration of the Initial Term and any Extended Term (as applicable), the Buyer shall have the right, in its sole and absolute discretion and at the Buyer’s sole expense, to remove the Purchased Assets from the premises where they are located upon the Buyer providing the Seller with written notice of its intention to so remove the Purchased Assets.

 

(B)           If the Buyer wishes to sell any or all of the Purchased Assets to any third party, the Seller shall have a right of first refusal to repurchase the relevant Purchased Assets at the same price and otherwise on substantially the same terms proposed for such third party sale or, if no third party buyer has been identified, at such price and on such terms as the Buyer and the Seller may negotiate and agree.  Promptly after reaching agreement as to the final price and other terms, the Seller shall make payment in full of such final price to the Buyer.  In the event that the Seller does not make prompt payment in full in immediately available funds to the Buyer as so agreed,  the Buyer shall immediately have the right to remove the relevant Purchased Assets without any further action or notice or claim upon the Seller with respect to such Purchased Assets.  In the case of any proposed sale of any Purchased Assets by the Buyer to a third party, the Buyers shall give the Seller at least [30] days prior written notice of such sale and the terms thereof (or of any change in the proposed price or any other material term of such sale) so that the Seller has a reasonable opportunity to evaluate and exercise its right of first refusal with respect thereto.

 

(C)           Exception.    The Purchased Assets consisting of the Nordiko 9606 and the VSM, which are listed at line items 1 and 2 on Schedule A, are excepted from Sections 3.5 (A) and (B).  To avoid confusion, with 90 calendar days prior written notice to the Seller, the Buyer may remove this tool from the Seller’s premises at any time after the effective date of this Agreement, at the Buyer’s sole expense.  The Seller acknowledges that it does not have the right to repurchase this tool.

3.6           Right to File Financing Statement.  The Seller hereby irrevocably authorizes the Buyer at any time and from time to time to file in any Uniform Commercial Code jurisdiction any initial financing statement(s) and amendments thereto in such form and substance as the Buyer shall reasonably require.  It is the intent of the parties that this Agreement and the transactions contemplated hereby constitute a sale of the Purchased Assets and a limited and discretionary right of the Seller to use such Purchased Assets as provided herein, and that any filing of a financing statement under the Uniform Commercial Code or otherwise shall not be construed as evidence that any security interest was intended to be created, but only to give public notice of the Buyer’s ownership of the Purchased Assets.

 

4.           Post-Closing Covenants.  The Seller agrees that:

 

4.1           Asset Tags.  If requested by the Buyer, the Seller shall cause the Purchased Assets to have asset tags affixed in a readily visible location at all times which asset tags will indicate that such Purchased Assets are the property of the Buyer; provided, however, that the Buyer shall be responsible for supplying such asset tags to the Seller.

  

4

 

 

4.2           Location of Assets; Access.  The Purchased Assets shall at all times be kept and maintained only at the address for the Seller listed in the first paragraph of this Agreement.  The Buyer shall be entitled to access the premises where the Purchased Assets are located during normal business hours and upon reasonable prior notice for inspection of same, and/or at any time for removal of same pursuant and subject to the terms of this Agreement.

 

5.           Claim

 

The Seller agrees that if the contract can not be executed which is caused by the seller, the seller will refund Buyer’s deposit of US$500,000.

 

6.           Force Majeure

6.1           If either of the parties to the Agreement is prevented from executing the Agreement by  reasons of Force Majeure such as war, serious fire, flood, typhoon and earthquake, etc., the time for execution of the contract shall be extended by a period equal to the effect of those causes. Such an event of a Force Majeure means the event that the parties could not foresee at the time of signing of the Contract and its occurrence and consequences can not be avoided and can not be overcome.

6.2           The prevented party shall notify the other party by cable or telex within the shortest possible time of the occurrence of the Force Majeure event and within fourteen (14) days thereafter send by registered airmail to the other party, a certificate for evidence issued by relevant authorities for confirmation. Should the effect of a Force Majeure continue for more than ninety (90) consecutive days, both parties shall reach an agreement concerning the further execution of the Contract through friendly negotiation and reach an agreement within a reasonable time.

7.           Arbitration.

 

All disputes arising from the execution of or in connection with this Agreement shall be settled through friendly consultation by both parties. In case no settlement can be reached by such consultation, the dispute shall be submitted for arbitration to be conducted in Boston, Massachusetts in accordance with the rules and procedures of the American Arbitration Association (AAA), with each party to designate one arbitrator and AAA to supply a third arbitrator.  Such arbitration shall be conducted in the English language and shall apply the internal laws of The Commonwealth of Massachusetts.  Any arbitration awarded shall be final and binding on the parties.  The parties shall share the fees of AAA for the arbitration equally, but each party shall otherwise bear its own costs and expenses of the arbitration.

 

8.           Payments.  All payments by the Buyer to the Seller pursuant to this Agreement shall be made in United States dollars, by wire transfer of immediately available funds, to the following account of the Seller:

 

Citizens Bank ABA#011500120

 

Account # 1137529609

 

Swift Code: CTZZIUS33

  

5

 

 

Advanced MicroSensors, Inc.

 

For reference, the bank details of the Buyer are as follows:

 

Company:SPINIC,Inc;

 

Address:No 97 Xiling Er Road, Yichang City, Hubei Province, People’s Republic of China

Bank:Bank of China , Yichang Beishanpo sub-branch.

Account: 832020269508091001

Tax Number:420502682678061

9.           Notices.  Any notices or other communications required or permitted hereunder shall be sufficiently given if delivered personally or sent by overnight courier or registered or certified mail, postage prepaid, addressed to the party at the address set forth on the signature page hereto or to such other address of which the parties may have given notice.  Unless otherwise specified herein, such notices or other communications shall be deemed received (a) on the date delivered, if delivered personally; (b) one (1) business day after being sent via overnight courier; or (c) three (3) business days after being sent, if sent by registered or certified mail.

 

10.         Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

11.         Entire Agreement; Amendments; Attachments.  This Agreement, all Schedules and Exhibits hereto, and all agreements and instruments to be delivered by the parties pursuant hereto represent the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersede all prior oral and written and all contemporaneous oral negotiations, commitments and understandings between such parties.  This Agreement may be modified or amended only by a written instrument executed by the Buyer and the Seller.

 

12.         Expenses.   The Buyer and the Seller shall each pay their own expenses in connection with this Agreement and the transactions contemplated hereby.

 

13.         Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.

 

14.         Limitation on Liability.   In no event shall either party be liable or responsible for any special, indirect, incidental or consequential damages (including but not limited to damages for loss of profits, loss of revenues or claims by any customer of Seller) arising out of or in connection with this Agreement or any performance or failure of performance by such party, even if such party has been advised of the possibility of such damages or losses.

 

15.         Miscellaneous.  The section headings are for the convenience of the parties and in no way alter, modify, amend, limit, or restrict the contractual obligations of the parties.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall be one and the same document.

  

6

 

 

16.         Language of this Agreement.  The parties acknowledge and agree that any Chinese language text or characters in this Agreement are solely for the internal information of the Buyer and have not been reviewed or approved by the Seller, and that the parties’ agreement is embodied solely in the English language text of this Agreement.  Accordingly, and notwithstanding anything to the contrary in this Agreement, no such Chinese language text or characters shall be considered part of this Agreement or have any legal force or effect between the parties or in any court, arbitration or other legal proceeding of forum.

[Remainder of this page left blank]

  

7

 

IN WITNESS WHEREOF, this Strategic Equipment Purchase Agreement has been duly executed by the parties hereto as of and on the date first above written.

 

	  	
SELLER:

	  	
ADVANCED MICROSENSORS, INC.

	  	  
	  	
By:_____/s/___________________________

	  	  
	  	
Name: Timothy C. Stucchi

	  	
Title: CEO/President

	  	
Address:333 South St

	  	
Shrewsbury Massachusetts 01545

	  	
Advanced MicroSensors, Inc.

	  	
Attn: Tina Krasnecky

	  	
Facsimile:  508-770-5807

	  	  
	  	
BUYER:

	  	
SPINIC, INC.

	  	  
	  	
By:_________/s/_______________________

	  	  
	  	
Name:  Zhenghong Qian

	  	
Title:  CTO

	  	
Address:

	  	
Attn: Zhenghong Qian

	  	
1 Zhongnan Road, Yichang City, Hubei Province 443003,

People’s Republic of China

	  	
SPINIC

	  	
Facsimile:  (86)0717-6436888

 

  

8

  

 

	
Schedule A - PURCHASED ASSETS

	
Line Item

	
Tag#

	
InSvcDate

	
Description

	
Manufacture

	
Model

	
SN

	
Equipment Description

	  	  	  	  	  	  	  	  
	
Nordiko 9606

	
1

	
92

	
11/1/2001

	
Nordiko9606

	
Nordico

	
9606

	  	
Six target sputtering system used for GMR multi-stack and spinvalve deposition. System is around 12 years old, very large, and in a working condition.

	  	  	  	  	  	  	  	
Targets include: Ta, NiFe, CoFe, Cu, Ru, IrMn and PtMn

	  	  	  	  	  	  	  	  
	
VSM

	
2

	
104

	
 

	
VSM

	  	  	  	
System used for measuring deposited magnetic films and is in good condition.

	  	  	  	  	  	  	  	  
	
Veeco C2 Microetch

	
3

	
48

	
6/21/1999

	
Veeco#1

	
Veeco

	
C2 Microetch

	
0896-899-117

	
Two module cluster tool for Ion Beam Etching. Capable of reactive or non-reactive etching, with Helium backside cooling and endpoint detection. System is in very good condition.

	  	  	                      	  	  	                             	  	  
	
MRC 943 1 & 2

	
4

	
41

	
6/21/1999

	
MRC#2

	
MRC

	
943

	
20954

	
Three target sputtering system used to deposit plating seed, adhesion and sacrifical layers.  System has a load lock for quick operation and offers heated or non heated exchanges, with an RF sputter etch. Systems are 15 years old.Targets include Ru, Au, TiW, NiFe, Cr & Cu)

	
5

	
42

	
6/21/1999

	
MRC943#1

	
MRC

	
943

	
1022362

	
Systems are in very good condition.

	  	  	  	  	  	  	  	  
	
Comptech 2460

	
6

	
10

	
6/21/1999

	
Comptech#2

	
Comptech

	
2460

	
CV-8966-01

	
Non-load locked sputtering system used for depositing thick layers of Alumina. System runs 4 wafers at a time, using a 2KW RF generator for substrate bias and a 20KW RF generator for target power. System is in very good condition.

	  	  	  	  	  	  	                     	
One Al2O3 Target, 17 inch square

	  	  	  	  	  	  	  	  
	
Comptech 620B

	
7

	
32

	
6/21/1999

	
Comptech 620B

	
Comptech

	
620B

	
CE-9711/1

	
Two module cluster tool used for depositing thin layers of Alumina, using helium backside cooling. Good for depositing thicknesses of 500 to 10,000 angstroms. 12 years old. Load lock, 2 chambers System. Targets include 2 Al2O3 targets.

	  	  	  	  	  	  	  	
System in very good condition.

	  	  	  	  	  	  	  	  
	
Nordiko 8550

	
8

	
78

	
6/21/1999

	
Nordiko8550 #3

	

Nordico

	

8550

	
 

	
Load locked sputtering system. 4 targets: SiCr, In2O3-SnO2 90-19(wt%), Ta0(5)ZrO(2)Al2O3,NiCr(20%)

System is in a good condition

	  	  	  	  	  	  	  	  
	
KLA 4500 Surfscan

	
9

	
105

	
71/2002

	
KLA 4500 surfscan

	
KLA Tencor

	
4500

	
0687-164

	
Cassette to cassette particle measuring system used for verifying the cleanliness of process chambers in photo and vacuum. Data can be uploaded to MES system. Machine in very good condition.

	  	  	  	  	  	  	  	  
	
CMP

	
10

	
6

	
6/21/1999

	
CMP#1

	
Strausbaugh

	
6H

	  	
Polishing system used for planarizing deposited wafers using chemical and mechanical abrasives. Not in use on current product set, system remains in good condition.

	  	  	  	  	  	  	  	  
	
NiFe Plating station

	
11

	
18

	
6/21/1999

	
NiFe Plating Station

	
MKQC

	  	  	
Home made system used for plating two different compositions in a magnetic field. 2 different liquids for plating Ni81Fe19 and Ni45Fe55 respectively.

	  	  	  	  	  	  	  	
System is 15 years old and in good condition.

	  	  	  	  	  	  	  	  
	
Gold Plating station

	
12

	
24

	
6/21/1999

	
Au Plater & Rinse/Dryer

	
MKQC

	  	  	
Home made system used for plating two different compositions, system is 15 years old. 2 different chemical liquid solutions 553 and 556 for plating Au with different grain sizes for different applications.

	  	  	  	                                                 	  	  	  	
System is in good condition.

	  	  	  	  	  	  	  	  
	
Scorpio Coater

	
13

	
36

	
6/21/1999

	
Scorpio#2

	
SSI

	  	
200830

	
System dispenses six different resists, two spin modules, six hotplates for soft baking and three chill plates for cooling. Operates in its own class 10 mini environment for added temperature and humidity controls. System is around 14 years old and is in very good condition.

	  	  	  	  	  	  	  	  
	
Matrix 105 3 & 4

	
14

	
38

	
6/21/1999

	
Matrix #3

	
Matrix

	
105

	
1409101-1081

	
We have five systems, 4 for Oxygen and 1 for H2/N2. Provides descum and ashing for film

	
15

	
125

	
6/21/1999

	
Matrix#4

	
Matrix

	
105

	
14151001-1081

	
adhesion, around 15 years old and are in very good condition.

	  	  	  	  	  	  	                           	  
	
Ultratech 1700

	
16

	
44

	  	
Stepper#2(1700)

	
Ultratech

	
1700

	
1105

	
This step and repeat mask aligner (Stepper) is a cassette to cassette machine used for defining photolithography patterns down to 1.2 microns. System is in very good condition.

	  	  	  	  	  	  	  	  
	
Despatch Oven 2

	
17

	
87

	
7/1/2001

	
Despatch Oven#2

	
Despatch

	
Mag anneal

	
167798 L

	
This Magnetic annealing vacuum bake oven Is capable of running up to 260 degrees C in a permanent magnetic field while controlling pressure and background gas. System can run multiple recipes and is in very good condition.

	  	  	  	  	  	  	  	  
	
Karl Suss MA6

	
18

	
181

	
9/1/2003

	
Karl Suss Aligner

	
Karl Suss

	
MA6

	
167330

	
This mask aligner is a manual system capable of exposing a pattern on the front or backside of 3" or 6" wafers.5um patterning difination. It is in very good condition.

	  	  	  	  	  	  	  	  
	
AIS 3 & 4

	
19

	
31

	
6/21/1999

	
AIS#3

	
Microtronics

	  	  	
These Automatic Inpsection Stations are microscopes with cassette to cassette wafer handling.

	
20

	
30

	
6/21/1999

	
AIS#4

	
Microtronics

	  	  	
They are programable for inspection site consistency and image uploading. Systems are in very good condition.

	  	  	  	  	  	  	  	  
	
Tencor P20

	
21

	
19

	  	
P20#20

	
KLA Tencor

	
P20

	
5950134

	
Surface profilomter used for measuring plated, etched or liftoff films. Connected to the data collection system for accuracy and SPC population. 15 years old and in good condition.

	  	  	  	  	  	  	  	  
	
Semitool Batch Developer

	
22

	
33

	  	
Semitool Batch Dev. #1

	
Semitool

	
WST

	  	
Semitool WST used for KOH developing up to 8 wafers at a time. System uses a recliam tank to conserve chemistry and has multiple reicpes for cinsistency. In very good condition.

	  	  	  	                                                	  	  	  	  
	
Nano 8000

	
23

	
116

	
5/1/2004

	
Nano8000#2

	
Nanospec

	
8000

	
0596-80031-0001

	
Cassette to cassette film measurement system used to check thickness and uniformity. Data can be uploaded, system is in very good condition.

	  	  	  	  	  	  	                               	  
	
Magnetic Tester

	
24

	
170

	
6/21/1999

	
Magnetics Tester

	
Electroglass

	  	  	
Electroglass base prober with magnetic application and subsequent measurement capable. System can utilize multiple probe card for product layout variation, data can be uploaded. It is in good condition.The system can be used to measure hysterises, bridge output, bridge offset etc.

	  	  	  	  	  	  	  	  
	
Omnimap

	
25

	
148

	  	
Tencor Omni Map

	
Tencor

	
Omni Map

	  	
Four point probe used for measuring sheet resistance of deposited films. System is around 15 years old and is tied to the data collection system for

	  	  	  	  	  	  	  	  
	
Electroglass Tester

	
26

	
14

	  	
Test#2

	
Electroglass

	  	  	
Wafer prober used for measuring inline and final tests. We have 4 systems, one configured as a magnetic tester. Systems are 15 years old.

	  	  	  	  	  	  	  	
The system is in good condition.

	  	  	  	  	  	  	  	  
	
Liftoff

	
27

	
34

	  	
Liftoff Process Station

	  	  	  	
This is a 4 vat solvent station capable of heat, ultrasonics and agitation for effective stripping and liftoff processing. System is 15 years old and in good condition.

	  	  	  	                                                	  	  	  	  
	
SVG Track Developer

	
28

	
128

	  	
SVG Track Dev1&2

	
SVG

	
8800

	  	
Two track resist developer configured with two different chemistries. Cassette to cassette operation with 9 recipe program capability. System is 15 years old and in good condition.

	  	  	  	  	  	  	  	  
	
KLA 5107

	
29

	
84

	  	
KLA5107

	
Kaul Suss

	
5107

	  	
Optical measurement tool used for photo critical dimension and overlay measurements. System is connected to our data collection system and is 15 years old and in good condition.

	  	  	  	  	  	  	  	  
	
SRD

	
30

	
57

	  	
Rinser/Dryer

	
Semitool

	
8705

	  	
Spin/Rinser/Dryer used to clean wafers with DI water after develop. System is 15 years old.

	  	  	  	  	  	  	  	  
	
HMDS Prime

	
31

	
74

	  	
Vapor Prime Oven

	  	  	  	
Vacuum bake oven used to apply HMDS as an adhesion promoter before resist application. 15 years old, in good condition.

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