Document:

Prepared by MERRILL CORPORATION

Exhibit 10.96

[Cornish & Carey Commercial Logo]

 

SUBLEASE

 

	

  Sublessor:

  	

  Southwall

  Technologies, Inc.,

  	

  Premises:

  	

  1029

  Corporation Way, #210

  
	

   

  	

  a Delaware

  corporation

  	

   

  	

  Palo Alto,

  CA 94303

  
	

   

  	

   

  	

   

  	

   

  
	

  Sublessee:

  	

  Digeo, Inc.,

  a Delaware corporation

  	

  Date:

  	

  July 10, 2001

  

 

	

  1.

  	

  Parties:

  
	

   

  	

  This

  Sublease is made and entered into as of July 10, 2001, by and between

  Southwall Technologies, Inc., a Delaware corporation (Sublessor), and Digeo,

  Inc., a Delaware corporation (Sublessee), under the Master Lease dated

  October 14, 1999, between C & J Development Co., a California limited

  partnership, as Lessor and Sublessor under this Sublease as Lessee. A copy of

  the Master Lease is attached hereto as Exhibit "A" and incorporated

  herein by reference.

  
	

   

  	

   

  	

   

  
	

  2.

  	

  Provisions Constituting Sublease:

  
	

   

  	

  2.1

  	

  This

  Sublease is subject to all of the terms and conditions of the Master Lease

  except as specifically excluded in section 2.2 of this Sublease. Sublessee

  hereby assumes and agrees to perform all of the obligations of Lessee under

  the Master Lease to the extent said obligations apply to the Subleased

  Premises and Sublessee's use of the common area, except as specifically set

  forth herein. Sublessor hereby agrees to cause Lessor, under the Master

  Lease, to perform all of the obligations of Lessor thereunder to the extent

  said obligations apply to the Subleased Premises and Sublessee's use of the

  common areas. Sublessee shall not commit or permit to be committed on the

  Subleased Premises or on any other portion of the Project any act or omission

  which violates any term or condition of the Master Lease. Except to the

  extent waived or consented to in writing by the other party or parties hereto

  who are affected thereby, neither of the parties hereto will, by

  renegotiations of the Master Lease, assignment, subletting, default or any

  other voluntary action, avoid or seek to avoid the observance or performance

  of the terms to be observed or performed hereunder by such party but, will at

  all times, in good faith assist in carrying out all the terms of this

  Sublease and in taking all such action as may be necessary or appropriate to

  protect the rights of the other party or parties hereto who are affected

  thereby against impairment. Nothing contained in this Section 2.1 or

  elsewhere in this Sublease shall prevent or prohibit Sublessor (a) from

  exercising its right to terminate the Master Lease pursuant to the terms

  thereof or (b) from assigning its interest in this Sublease, only if

  Sublessee is in material, uncured breach of the terms of Sublease.

  
	

   

  	

   

  	

   

  
	

   

  	

  2.2

  	

  All of the

  terms and conditions contained in the Master Lease are incorporated herein,

  except as specifically provided below, and shall together with the terms and

  conditions specifically set forth in this Sublease constitute the complete

  terms and conditions of this Sublease. The following paragraphs of the Master

  Lease shall not be

  included in this Sublease: 2, 4, 5, 7, 9, 13, 16, 48, 53, 54, 55, Exhibit A.

  
	

   

  	

   

  	

   

  
	

  3.

  	

  Subleased Premises:

  
	

   

  	

  Sublessor

  leases to Sublessee and Sublessee leases from Sublessor the Subleased

  Premises upon all of the terms, covenants and conditions contained in this

  Sublease. The Subleased Premises consist of approximately 5,342 rentable +/-

  square feet, located at 1029 Corporation Way, #210 in Palo Alto, California

  as shown and described in Exhibit "B".

  
	

   

  	

   

  	

   

  
	

  4.

  	

  Rent:

  
	

   

  	

  Upon

  execution of this Agreement, Sublessee shall pay to Sublessor as Rent for the

  Subleased Premises the sum of Twenty-Three Thousand Five Hundred Ninety and

  96/100 Dollars ($23,590.96) Full Service, representing July's pro rata rent

  (25th-31st) and August's rent payment. No rent shall be

  due prior to July 25, 2001. Thereafter, the monthly rent shall be the sum of

  Nineteen Thousand Seven Hundred Sixty-Five and 40/100 Dollars ($19,765.40)

  Full Service, in accordance with the following schedule:

  

 

	

  Months

  	

  Amount per square

  foot//Full Service

  	

   

  
	

  01-18

  	

  $3.70

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  

 

	

   

  	

  The rental

  amount shall be paid, without deductions, offset, prior notice or demand. If

  the commencement date or the termination date of the Sublease occurs on a

  date other than the first day or the last day, respectively, of a calendar

  month, then the Rent for such partial month shall be prorated and the

  prorated Rent shall be payable on the Sublease commencement date or on the

  first day of the calendar month in which the Sublease termination date

  occurs, respectively.

  
	

   

  	

   

  	

   

  
	

   

  	

  Sublessee

  shall not be required or obligated to complete any work or pay any repair and

  maintenance costs, property taxes and insurance, common area charges, capital

  expenditures, or other items that Master Lessor may pass through to

  Sublessor. Sublessor shall be responsible for ensuring that the building

  systems, plumbing, electrical and HVAC systems remain in good working

  condition and repair throughout the sublease term.

  
	

   

  	

   

  	

   

  
	

  5.

  	

  Security Deposit:

  
	

   

  	

  Upon

  execution of this Agreement, Sublessee shall pay to Sublessor $39,530.80 as a

  non-interest bearing Security Deposit. In the event Sublessee has performed

  all of the terms and conditions of this Sublease during the term hereof,

  Sublessor shall return to Sublessee, within ten (10) days after Sublessee has

  vacated the Subleased Premises, the Security Deposit less any sums due and

  owing to Sublessor.

  
	

   

  	

   

  	

   

  
	

  6.

  	

  Rights of Access and Use:

  
	

   

  	

  6.1

  	

  Use:

  
	

   

  	

   

  	

  Sublease

  shall use the Subleased Premises only for those purposes permitted in the

  Master Lease, unless Sublessor and Master Lessor consent in writing to other

  uses prior to the commencement thereof.

  
	

   

  	

   

  	

   

  
	

  7.

  	

  Sublease Term:

  
	

   

  	

  7.1

  	

  Sublease

  Term:

  
	

   

  	

   

  	

  The Sublease

  Term shall be for the period commencing on July 23, 2001 and continuing

  through December 31, 2002. In no event shall the Sublease Term extend beyond

  the Term of the Master Lease.

  
	

   

  	

   

  	

   

  
	

   

  	

  7.2

  	

  Inability to

  Deliver Possession:

  
	

   

  	

   

  	

  In the event

  Sublessor is unable to deliver possession of the Subleased Premises at the

  commencement of the term, Sublessor shall not be liable for any damage caused

  thereby nor shall this Sublease be void or voidable, but Sublessee shall not

  be liable for Rent until such time as Sublessor delivers possession of the

  Subleased Premises to Sublessee, but the term hereof shall not be extended by

  such delay. If Sublessee, with Sublessor's consent, takes possession prior to

  commencement of the term, Sublessee shall do so subject to all the covenants

  and conditions hereof and shall pay Rent for the period ending with

  commencement of the term at the same rental as that prescribed for the first

  month of the term prorated at the rate of 1/30th thereof  per day. In the event Sublessor has been

  unable to deliver possession of the Subleased Premises within thirty (30)

  days from the commencement date, Sublessee, at Sublessee's option, may

  terminate this Sublease.

  
	

   

  	

   

  	

   

  
	

  8.

  	

  Notices:

  
	

   

  	

  All notices,

  demands, consents and approvals which may or are required to be given by

  either party to the other hereunder shall be given in the manner provided in

  the Master Lease at the addresses shown below. Sublessor shall notify

  Sublessee of any Event of Default under the Master Lease, or of any other

  event of which Sublessor has actual knowledge which will impair Sublessee's

  ability to conduct its normal business at the Subleased Premises, as soon as

  reasonably practicable following Sublessor's receipt of notice from the

  Lessor of an Event of Default or actual knowledge of such impairment. If

  Sublessor elects to terminate the Master Lease, Sublessor shall so notify

  Sublessee by giving at least thirty (30) days notice prior to the effective

  date of such termination.

  

 

	

  Sublessor's Address:  

  	

   

  	

  Southwall

  Technologies, Inc.

  1029 Corporation Way

  	

  Sublessee's Address:

  	

   

  	

  Digeo, Inc.

  1029 Corporation Way, #210

  
	

   

  	

   

  	

  Palo Alto,

  CA 94303

  	

   

  	

   

  	

  Palo Alto,

  CA 94303

  
	

  Attn:

  	

   

  	

  Robert R.

  Freeman

  	

  Attn:

  	

   

  	

  Larry Weber

  
	

   

  	

   

  	

  Sr. Vice

  President, CFO

  	

   

  	

   

  	

  President,

  Digeo Systems Group

  
	

  Phone Number:

  	

   

  	

  650-962-9111

  x 1225

  	

  Phone Number:

  	

   

  	

  (650)

  823-3985 (Cellular)

  
	

  Fax Number:

  	

   

  	

  650-967-8713

  	

  Fax Number:

  	

   

  	

  TBD

  

 

	

  9.

  	

  Broker Fee:

  
	

   

  	

  Upon

  execution of the Sublease, Sublessor shall pay Cornish & Carey

  Commercial, a licensed real estate broker, fees set forth in a separate

  agreement between Sublessor and Broker, for brokerage services rendered by

  Broker to Sublessor in this transaction.

  
	

   

  	

   

  
	

  10.

  	

  Broker Representation:

  
	

   

  	

  The only

  Brokers involved in this Sublease are Cornish & Carey Commercial

  representing Sublessor and Colliers International representing Sublessee:

  
	

   

  	

   

  
	

  11.

  	

  Compliance with Nondiscrimination Regulations:

  
	

   

  	

  It is

  understood that it is illegal for Sublessor to refuse to display or sublease

  the Subleased Premises or to assign, surrender or sell the Master Lease, to

  any person because of race, color, religion, national origin, sex, sexual

  orientation, marital status or disability.

  
	

   

  	

   

  
	

  12.

  	

  Toxic Contamination Disclosure:

  
	

   

  	

  Sublessor

  and Sublessee each acknowledges that they have been advised that numerous

  federal, state, and/or local laws, ordinances and regulations (Laws) affect

  the existence and removal, storage, disposal, leakage of and contamination by

  materials designated as hazardous or toxic (Toxics). Many materials, some

  utilized in everyday business activities and property maintenance, are

  designated as hazardous or toxic.

  
	

   

  	

   

  
	

   

  	

  Sublessee

  shall be released from any potential liability resulting from Sublessor's

  breach of the terms of the Master Lease including Section 50 (Environmental

  Matters) which occurred prior to commencement of the Sublease.

  
	

   

  	

   

  
	

   

  	

  Some of the

  Laws require that Toxics be removed or cleaned up by landowners, future

  landowners or former landowners without regard to whether the party required

  to pay for "clean up" caused the contamination, owned the property

  at the time the contamination occurred or even knew about the contamination.

  Some items, such as asbestos or PCBs, which were legal when installed, now

  are classified as Toxics and are subject to removal requirements. Civil

  lawsuits for damages resulting from Toxics may be filed by third parties in

  certain circumstances.

  
	

   

  	

   

  
	

   

  	

  Sublessor

  and Sublessee each acknowledge that Broker has no specific expertise with

  respect to environmental assessment or physical condition of the Subleased

  Premises, including, but not limited to, matters relating to: (i) problems

  which may be posed by the presence or disposal of hazardous or toxic

  substances on or from the Subleased Premises, (ii) problems which may be

  posed by the Subleased Premises being within the Special Studies Zone as

  designated under the Alquist-Priolo Special Studies Zone Act (Earthquake

  Zones), Section 2621 - 2630, inclusive of California Public Resources Code,

  and (iii) problems which may be posed by the Subleased Premises being within

  a HUD Flood Zone as set forth in the U.S. Department of Housing and Urban

  Development "Special Flood Zone Area Maps", as applicable.

  
	

   

  	

   

  
	

   

  	

  Sublessor  and Sublessee each acknowledge that Broker

  has not made an independent investigation or determination of the physical or

  environmental condition of the Subleased Premises, including, but not limited

  to, the existence or nonexistence of any underground tanks, sumps, piping,

  toxic or hazardous substances on the Subleased Premises. Sublessee agrees

  that it will rely solely upon its own investigation and/or the investigation

  of professionals retained by it or Sublessor, and neither Sublessor nor

  Sublessee shall rely upon Broker to determine the physical and environmental

  condition of the Subleased Premises or to determine whether, to what extent

  and in what manner, such condition must be disclosed to potential sublessees,

  assignees, purchasers or other interested parties. Sublessor shall indemnify

  Sublessee from any prior toxic contamination.

  
	

   

  	

   

  
	

  13.

  	

  Rent Abatement and Damages to Personal Property:

  
	

   

  	

  In the event

  Sublessor, pursuant to the terms of the Master Lease, is entitled to and

  receives rent abatement, then to the extent such rent abatement affects the

  Subleased Premises, Sublessee shall be entitled to rent abatement in an

  amount that the net rentable area of the Subleased premises bears to the

  total net rentable area of the Master Lease, and only to the extent any such

  abatement applies to the Sublease Term. In addition, any amounts paid or

  credited to Sublessor under the terms of the Master Lease for damage to

  personal property shall be credited to Sublessee, subject to the same

  limitations set forth above.

  
	

   

  	

   

  
	

  14.

  	

  Tenant Improvements:

  
	

   

  	

  Sublessee

  shall take possession of the Premises in an "as is" condition with

  the exception that Sublessor will steam clean the carpet. Sublessor shall

  also insure that all Building systems are in good working condition at Lease

  commencement. Sublessor shall patch the walls and provide touch-up paint as

  necessary so that upon delivery to Sublessee, the walls and doors of the Premises

  are clean, free of holes, and appear in good clean condition. Sublessee shall

  have the right, at Sublessee's cost and completed by licensed contractors

  with government approvals as required, to divide the conference room into two

  separate rooms, add supplemental HVAC to Sublessee's server room, and add a

  satellite dish to the roof. Sublessee shall have access to its satellite dish

  24 hours per day, 7 days per week. Sublessee shall also have the right to

  make further changes to the Premises that it deems necessary subject to

  reasonable approval from Sublessor and Lessor which shall not be unduly

  withheld. Regarding such additional improvements, at the time of Sublessor's

  approval, Sublessor may require Sublessee to return the improvements back to

  its original condition at the end of the Sublease term. Sublessee shall keep

  property lien free for any improvement work.

  
	

   

  	

   

  
	

  15.

  	

  Furniture:

  
	

   

  	

  With the

  exception of all furniture in the conference room, the phone systems and all

  file cabinets, Sublessee shall have the right to use the furniture and

  whiteboards in the Premises at no charge during the sublease term. Sublessor

  shall also provide full compliment of office furniture for each private

  office. Additionally, Sublessor will provide cubicles which will support 14

  full-time work stations. Furthermore, Sublessee, at Sublessee's sole cost,

  will have permission from the Sublessor to reconfigure the cubicles.

  Sublessor shall provide the name and phone number of their furniture

  contractor as soon as possible.

  
	

   

  	

   

  
	

  16.

  	

  Expansion:

  
	

   

  	

  Sublessee

  shall have the right of first offer on Suites #100 and #200 in the building.

  The process for this right of first offer shall be that should Sublessor at

  any time receive an offer on either one of these suites, Sublessor shall provide

  a copy of that offer to Sublessee. Sublessee shall then have 2 full business

  days following receipt of that agreement by the Sublessee to lease the

  subject space under the terms of that offer. If Sublessee does not respond or

  does not accept the terms of the offer, Sublessor shall have the right to

  lease space to that third party. The right of first offer shall exist any

  time Sublessor receives a new offer or substantive change to an existing

  offer.

  
	

   

  	

   

  
	

  17.

  	

  Insurance:

  
	

   

  	

  Pursuant to

  the Master Lease Paragraph #11, 2nd page, 8th line down

  "shall be endorsed to provide that the limits and aggregates apply per

  location using ISO Bureau Form CG25041185" shall not be applicable to

  Sublessee.

  
	

   

  	

   

  
	

   

  	

  With regard

  to the Master Lease Paragraph #11, 2nd page, 12th line

  down, Sublessee deductible shall be $50,000 per occurrence. Sublessee shall

  be solely responsible for any loss up to the $50,000 deductible amount.

  
	

   

  	

   

  
	

   

  	

  Pursuant to

  the Master Lease Paragraph #11, 2nd page, 12th line

  down "The commercial general liability insurance carried ... provisions

  set forth in said Paragraph 18" shall be inapplicable to Sublessee.

  
	

   

  	

   

  
	

  18.

  	

  Early Occupancy:

  
	

   

  	

  Sublessor

  shall provide early occupancy to the Premises no later than July 23, 2001.

  Sublessor will use its best efforts to get Sublessee into the space prior to

  July 23, 2001.

  
	

   

  	

   

  
	

  19.

  	

  Signage:

  
	

   

  	

  Sublessor

  shall allow Sublessee exterior signage in the form of building signage, based

  on their pro rata share of the building. Such signage shall be subject to

  Master Landlord's and Sublessor's prior approval.

  
	

   

  	

   

  
	

  20. 

  	

  Full Service Sublease:

  
	

   

  	

  Both parties

  agree they are entering into a Full Service Sublease including 5 days a week

  janitorial and utilities.

  

 

Sublessor:

 

	

  By:

  	

  /s/ Robert

  R. Freeman

  

  

  

  

  	

   

  	

  Date:

  	

  July 12,

  2001

  

  

  

  

  
	

   

  	

  Robert R. Freeman, Sr. Vice President, CFO

  Southwall Technologies, Inc. 

  	

   

  	

   

  	

   

  

 

Sublessee:

 

	

  By:

  	

  /s/ Larry

  Weber

  

  

  

  

  	

   

  	

  Date:

  	

  July 12,

  2001

  

  

  

  

  
	

   

  	

  Larry Weber, President, Digeo Systems Group

  Digeo, Inc.

  	

   

  	

   

  	

   

  

 

NOTICE TO SUBLESSOR AND

SUBLESSEE: CORNISH & CAREY COMMERCIAL, IS NOT AUTHORIZED TO GIVE LEGAL OR

TAX ADVICE; NOTHING CONTAINED IN THIS SUBLEASE OR ANY DISCUSSIONS BETWEEN

CORNISH & CAREY COMMERCIAL AND SUBLESSOR AND SUBLESSEE SHALL BE DEEMED TO

BE A REPRESENTATION OR RECOMMENDATION BY CORNISH & CAREY COMMERCIAL, OR ITS

AGENTS OR EMPLOYEES AS TO THE LEGAL EFFECT OR TAX CONSEQUENCES OF THIS DOCUMENT

OR ANY TRANSACTION RELATING THERETO. ALL PARTIES ARE ENCOURAGED TO CONSULT WITH

THEIR INDEPENDENT FINANCIAL CONSULTANTS AND/OR ATTORNEYS REGARDING THE

TRANSACTION CONTEMPLATED BY THIS PROPOSAL.

 

Exhibit "A" Master

Lease

Exhibit "B" Premises

 

 

 

 

CONSENT OF MASTER LESSOR

 

                Master Lessor ("Master Lessor"), as

landlord under the Master Lease dated October 14, 1999, attached hereto as

Exhibit A ("Lease") , hereby consents to the foregoing Sublease by

and between Southwall Technologies, Inc., a Delaware corporation

("Sublessor") and Digeo, Inc., a Delaware corporation

("Sublessee"). Said consent shall not, nor be deemed to, waive, amend

or modify any provision of the Lease, nor shall said consent be deemed to be or

constitute a consent to any further sublease or assignment or other future

transaction (whether similar or dissimilar) whatsoever, which under the terms

of the Lease requires Master Lessor's consent. Further, said consent shall not

release, nor be deemed to release, Tenant from any of its covenants,

agreements, liabilities, and obligations under or arising out of the Lease, and

nor shall said consent constitute Master Lessor's consent to, or create or be

deemed to create, any direct contractual privity between Master Lessor and

Sublessee with respect to the Sublease (not-withstanding any provisions as may

exist to the contrary in the Sublease). In providing said consent, Master

Lessor makes no representations or warranties whatsoever, whether express or

implied, regarding the physical or environmental condition of the Subleased

Premises or Premises (including, without limitation, its habitability or

suitability for any use or purpose or compliance with the Americans with

Disabilities Act) or regarding any other condition affecting the Subleased

Premises or Premises, and by its execution of this instrument Sublessee

covenants and agrees not to sue and to forever release Master Lessor, and its

trustees, officers, directors, agents and employees for and from any and all

claims, losses, damages, causes of action, and liabilities arising out of

hazardous substances or groundwater contamination presently existing on, under

or emanating from the Premises or any part thereof.

 

                By its execution of this instrument,

Sublessee acknowledges and agrees that the Sublease is and shall remain at all

times subject and subordinate in all respects to the Lease, and Sublessee

further agrees to indemnify, defend and hold Master Lessor harmless on the same

terms and conditions that Sublessor has agreed to indemnify, defend and hold

Master Lessor harmless under Paragraph 18 of the Lease (with each reference to

the "Premises", "Tenant", "Landlord" and

"Paragraph 7" contained therein being deemed to refer to the

Subleased Premises, Sublessee, Master Lessor, and the Sublease, respectively).

Said indemnity by Sublessee shall survive the expiration or sooner termination

of the Sublease.

 

                As set forth in paragraph 19 of the Master

Lease, one-half of any sums or other economic consideration received by

Sublessor as a result of the foregoing sublease agreement between Sublessor and

Sublessee (except rental or other payments received which are attributable to

the amortization over the term of this lease of the cost of leasehold

improvements constructed for such subtenant, and brokerage fees) whether

denominated rentals or otherwise, which exceed, in the aggregate, the total

sums which Sublessor is obligated to pay Master Lessor under the Master Lease

(prorated to reflect obligations allocable to that portion of the Premises

subject to such sublease), shall be payable to Master Lessor as additional rent

under the Master Lease without affecting or reducing any other obligation of

Sublessor under the Master Lease or hereunder.

 

                All notices to be given to Landlord pursuant

to the Lease (or to Lessor pursuant to the Sublease) shall be sent to 360 S.

San Antonio Road, Suite 14, Los Altos, CA 94022.

 

                Unless otherwise defined herein, all

initially capitalized terms used herein shall have the meaning ascribed to them

in the Lease or Sublease, as applicable. The provisions of the Lease, Sublease

and this consent shall apply during any early occupancy period. In the event of

any inconsistency between the terms of this consent and the terms of the

Sublease, the terms of this consent shall control.

 

                IN WITNESS WHEREOF, the parties hereto have

executed this Consent of Master Lessor as of the day and year set forth the

below parties' respective signatures.

 

	

  MASTER

  LESSOR:

  	

  C & J

  DEVELOPMENT COMPANY,

  
	

   

  	

  a California

  limited partnership

  
	

   

  	

   

  
	

   

  	

  By: /s/

  Sandra Simons

  

  

  

  

  
	

   

  	

  Sandra

  Simons, as Trustee under the Charles S. McCandless and Jean A. McCandless

  Inter Vivos Trust Agreement dated January 25, 1977, a General Partner

  
	

   

  	

   

  
	

   

  	

  Date:

  

  

  

  

  
	

   

  	

   

  
	

  SUBLESSEE:

  	

  SOUTHWALL

  TECHNOLOGIES, INC., a Delaware Corporation

  
	

   

  	

   

  
	

   

  	

  By: /s/

  Robert R. Freeman

  

  

  

  

  
	

   

  	

   

  
	

   

  	

  Name: Robert

  R. Freeman

  

  

  

  

  
	

   

  	

   

  
	

   

  	

  Its: Sr. VP,

  CFO

  

  

  

  

  
	

   

  	

   

  
	

   

  	

  Date: July

  12, 2001

  

  

  

  

  
	

   

  	

   

  
	

  SUBLESSOR:

  	

  DIGEO, INC.,

  a Delaware Corporation

  
	

   

  	

   

  
	

   

  	

  By: /s/

  Larry Weber

  

  

  

  

  
	

   

  	

   

  
	

   

  	

  Name: Larry

  Weber

  

  

  

  

  
	

   

  	

   

  
	

   

  	

  Its:

  President, dSG

  

  

  

  

  
	

   

  	

   

  
	

   

  	

  Date: July

  12, 2001Prepared by MERRILL CORPORATION

Exhibit 10.97

 

 

AGREEMENT BETWEEN SOUTHWALL TECHNOLOGIES

INC./

ENERGY CONVERSION DEVICES, INC.

 

Southwall

Technologies Inc. (“Southwall”) and Energy Conversion Devices, Inc. (“ECD”)

have reached an agreement on September 21, 2001 with regard to the payment of

the indebtedness that Southwall owes to ECD as a result of the purchase of a

production machine generally referred to as PM7.

 

In

consideration of the mutually binding covenants set forth below, the

sufficiency of which are acknowledged, the parties agree as follows:

 

1.     In satisfaction of all

indebtedness owed to ECD in connection with PM7, Southwall shall pay to ECD the

amounts indicated, at the times specified, on the payment schedule attached

hereto as Annex 1.

 

2.     It is acknowledged that

title to PM7 is currently held by Matrix Funding Corporation (“Matrix”) under

sale and leaseback agreements (the “Lease”) executed by Southwall in 1999.  Southwall represents that it is currently

negotiating with Matrix to buyout the Lease and take title to PM7, and

reasonably believes that its negotiations will be successful.  Southwall cannot, however, guarantee that it

will be able to negotiate a commercially reasonable buy-out of the Lease

obligations and can not represent that Southwall presently holds all right,

title and interest in PM7 free of any liens or encumbrances.

 

3.     It is also acknowledged

that Pacific Business Funding Corporation (“PBFC”) has a general security

interest in all of Southwall’s equipment installed at its Tempe, Arizona

facility.  This will include PM7, if

Southwall obtains title to it. 

Southwall represents that it will seek to have PBFC subordinate its

secured position on PM7 to ECD. 

Southwall reasonably believes that, if it is able to acquire title to

PM7 from Matrix, it will be able to cause PBFC to subordinate its interest to

ECD and covenants to take all reasonable steps necessary to obtain such

subordination.  Southwall cannot,

however, guarantee that it will be able to cause PBFC to subordinate its

interest in PM7.

 

4.     Southwall shall keep ECD

informed of its progress in its negotiations with Matrix and PBFC.  If Southwall acquires title to PM7, and

causes PBFC to subordinate its interest to ECD, Southwall shall execute all

documents and take all reasonable actions requested of it by ECD in order to

permit ECD to perfect its primary security interest in PM7 and to record it.

 

5.     Regardless of whether

Southwall obtains title to PM7, or causes PBFC to subordinate its interest in

it, the obligations of Southwall shall be absolutely due and payable according

to the payment schedule.

 

 

	

   

  	

  ENERGY

  CONVERSION DEVICES, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By: 

  	

  /s/  Steven W. Zumsteg

  
	

   

  	

  Name:  Steven W. Zumsteg

  
	

   

  	

  Title:  VP & CFO

  
	

   

  	

   

  
	

   

  	

  SOUTHWALL

  TECHNOLOGIES INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  Robert R. Freeman

  
	

   

  	

  Name:  Robert R. Freeman

  
	

   

  	

  Title:  Senior V.P. & CFO

  

 

 

ANNEX 1

PAYMENT

SCHEDULE

 

	

  DATE

  	

   

  	

  PAYMENT

  	

   

  
	

  September 26, 2001

  	

   

  	

  $

  	

  139,849.54

  	

   

  
	

  October 26, 2001

  	

   

  	

  50,000.00

  	

   

  
	

  November 26, 2001

  	

   

  	

  50,000.00

  	

   

  
	

  December 26, 2001

  	

   

  	

  50,000.00

  	

   

  
	

  January 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  February 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  March 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  April 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  May 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  June 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  July 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  August 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  September 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  October 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  November 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  December 26, 2002

  	

   

  	

  50,000.00

  	

   

  
	

  January 26, 2003

  	

   

  	

  69,769.84

  	

   

  
	

  Total Payments

  	

   

  	

  $

  	

  959,619.38

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]