Document:

Exhibit

Jacobs Engineering Group Inc.
Restricted Stock Unit Agreement 
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JACOBS ENGINEERING GROUP INC.   
RESTRICTED STOCK UNIT AGREEMENT 
(Performance Shares – ROIC)
(Awarded Pursuant to the 1999 Stock Incentive Plan, as Amended and Restated)
This Agreement is executed as of _____________________, by and between JACOBS ENGINEERING GROUP INC. (the “Company”) and _____________________ (“Employee”) pursuant to the Jacobs Engineering Group Inc. 1999 Stock Incentive Plan (the “Plan”). Unless the context clearly indicates otherwise, all terms defined in the Plan and used in this Agreement (whether or not capitalized) have the meanings as set forth in the Plan. 
1.Restricted Stock Units
Pursuant to the Plan, and in consideration for services rendered to the Company or Related Company or for their benefit, the Company hereby issues, as of the above date (the “Award Date”) to Employee an award of Restricted Stock Units in accordance with the Plan and the terms and conditions of this Agreement (the “Award”).  The target number of Restricted Stock Units Employee is eligible to earn under this Agreement is _______________ (the “Target ROIC Restricted Stock Units”).  Each Restricted Stock Unit represents the right to receive one share of Jacobs Common Stock (subject to adjustment pursuant to the Plan) in accordance with the terms and subject to the conditions (including the vesting conditions) set forth in this Agreement and the Plan.  If, with respect to the Restricted Stock Units, the Employee has made an effective and operative deferral election (“EDP Deferral Election”) under the Jacobs Engineering Group Inc. Executive Deferral Plan (“EDP”) with respect to the shares underlying this Agreement, the terms of the EDP and EDP Deferral Election governing the time of delivery of the shares underlying this Agreement that become vested, if any, are incorporated by reference herein.
2.Vesting and Distribution
		
	(a)
	The Award shall not be vested as of the Award Date and shall be forfeitable by Employee without consideration or compensation unless and until otherwise vested pursuant to the terms of this Agreement. 

		
	(b)
	The number of Restricted Stock Units earned under this Agreement shall be equal to the sum of the following (the “Earned ROIC Restricted Stock Units”):

		
	1.
	An amount, not less than zero, equal to one-third of the Target ROIC Restricted Stock Units multiplied by the ROIC Performance Multiplier (as defined herein) determined based upon the Company's ROIC (as defined herein) in fiscal year 2019; plus

		
	2.
	An amount, not less than zero, equal to (A) two-thirds of the Target ROIC Restricted Stock Units multiplied by the ROIC Performance Multiplier determined based upon the average ROIC in fiscal years 2020 and 2019 minus (B) the amount determined pursuant to Section 2(b)(1) above; plus

		
	3.
	An amount, not less than zero, equal to (A) the Target ROIC Restricted Stock Units multiplied by the ROIC Performance Multiplier determined based upon the average ROIC in fiscal years 2019, 2020, and 2021 

Jacobs Engineering Group Inc.
Restricted Stock Unit Agreement 
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minus (B) the amount determined pursuant to Sections 2(b)(1)and  2(b)(2) above.
The ROIC Performance Multiplier for purposes of the above calculations will be determined by reference to the following tables based upon the average ROIC over the indicated fiscal periods:
Fiscal Year 2019
	
		
	ROIC
	ROIC Performance Multiplier

	Less than 8.3%
	0%

	8.3%
	50%

	9.3%
	100%

	10.3%
	200%

Fiscal Year 2019 and Fiscal Year 2020
	
		
	Average ROIC
	ROIC Performance Multiplier

	Less than 8.4%
	0%

	8.4%
	50%

	9.4%
	100%

	10.4%
	200%

Fiscal Year 2019, Fiscal Year 2020 and Fiscal Year 2021
	
		
	Average ROIC
	ROIC Performance Multiplier

	Less than 8.6%
	0%

	8.6%
	50%

	9.6%
	100%

	10.6%
	200%

The ROIC Performance Multiplier will be determined using straight-line interpolation based on the actual average ROIC other than those listed in the charts above.
For purposes of this Section 2(b), the “Return on Invested Capital” for any fiscal period is computed by dividing Adjusted Net Earnings by the Average of Beginning and Ending Invested Capital during the period, and where invested capital is the sum of equity plus long term debt less cash and cash equivalents.  Adjusted Net Earnings means the Net Earnings attributable to the Company as reported in its consolidated financial statements for such period determined in accordance with accounting principles generally accepted in the United States (“GAAP”) (A) as may be adjusted to eliminate the effects of (i) costs associated with restructuring activities, as determined in accordance with GAAP, regardless of whether the Company discloses publicly the amount of such restructuring costs or the fact that the Company engaged in restructuring activities during the periods restructuring costs were incurred; and (ii) gains or losses associated with discontinued 

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Restricted Stock Unit Agreement 
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operations, as determined in accordance with GAAP, but limited to the first reporting period an operation is determined to be discontinued and all subsequent periods (i.e., there will be no retroactive application of this adjustment); and (B) as adjusted for all gains or losses associated with events or transactions that the Committee has made a finding are unusual in nature, infrequently occurring and otherwise not indicative of the Company’s normal operations, and therefore, not indicative of the underlying Company performance.  For purposes of this part (B), such events or transactions could include: (i) settlements of claims and litigation; (ii) disposals of operations including a disposition of a significant amount of the Company’s assets; (iii) losses on sales of investments; and (iv) changes in laws and/or regulations.  “Invested Capital” means (i) the value of the Company’s equity as reported in its consolidated financial statements for such period determined in accordance with GAAP, plus (ii) the value of the Company’s debt as reported in its consolidated financial statements for such period determined in accordance with GAAP, minus (iii) the Company’s cash and cash equivalent assets as reported in its consolidated financial statements for such period determined in accordance with GAAP.
		
	(c)
	After the Award Date, a number of Restricted Stock Units equal to the Earned ROIC Restricted Stock Units will become 100% vested (referred to as “Vested Units”) on the third anniversary of the Award Date (the “Maturity Date”), provided that, except as provided in Section 2(d) below, Employee remains continuously employed by the Company or Related Company through such Maturity Date. 

		
	(d)
	Notwithstanding anything in this Agreement or Schedule B of the Plan to the contrary, in the event that Employee’s employment with the Company or Related Company terminates prior to the Maturity Date as a result of Employee’s Retirement, death, or Disability, this Award shall remain outstanding and shall vest on the Maturity Date based on the Company’s average Return on Invested Capital over the Performance Period; provided, that on the Maturity Date only a pro-rated portion (based on the number of days, during the period between the Award Date and the Maturity Date, that Employee was employed by the Company or Related Company prior to Employee’s Retirement death, or Disability) of the Earned ROIC Restricted Stock Units will become vested, with the remainder of the Award forfeited at that time.  

		
	(e)
	Notwithstanding anything in this Agreement or Schedule B of the Plan to the contrary, in the event of a Change in Control, the number of Earned ROIC Restricted Stock Units shall be determined as of the date such Change in Control is consummated, rather than the Maturity Date, with the number of Earned ROIC Restricted Stock Units determined as set forth in Section 2(b) hereof, except that: (1) if the Change in Control occurs prior to the last day of fiscal year 2019, the ROIC Performance Multiplier will be 100%; and (2) if the Change in Control occurs upon or after the last day of fiscal year 2019, the ROIC Performance Multiplier shall be determined pursuant to Section 2(b) based upon the Company’s average Return on Invested Capital  based on information available as of the Change in Control (taking into account the consideration per share to be paid in the Change in Control transaction). 

Following a Change in Control, except as otherwise set forth in the Plan (including Schedule B thereof), the Earned ROIC Restricted Stock Units shall remain 

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Restricted Stock Unit Agreement 
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outstanding and subject to the terms and conditions of the Plan and this Agreement, including the vesting condition of continued employment through the Maturity Date.
		
	(f)
	Except as set forth herein and in the Plan (including Schedule B thereof, the terms of which shall apply to the Award), Employee has no rights, partial or otherwise in the Award and/or any shares of Jacobs Common Stock subject thereto unless and until the Award has been earned and vested pursuant to this Section 2. 

		
	(g)
	Each Vested Unit shall be settled by the delivery of one share of Common Stock (subject to adjustment under the Plan), unless the Committee elects to settle the Vested Unit in another form of consideration of equivalent value (as determined by the Committee in its sole discretion) in connection with or following a Change in Control. If the Employee has not made any EDP Deferral Election with respect to Restricted Stock Units that become vested, settlement will occur as soon as practicable following certification by the Company of the number of Earned ROIC Restricted Stock Units and passage of the Maturity Date (or, if earlier, the date the Award becomes vested pursuant to the terms of the Plan, including Schedule B thereof, or Section 2(d) above), but in no event later than 30 days following the Maturity Date (or such earlier date that the Award becomes vested). If the Employee has made an EDP Deferral Election, deferred Vested Units shall be settled as soon as practicable following the date elected on the Employee’s operative EDP Deferral Election or other settlement date set forth under the terms of the EDP.  In any event, no fractional shares shall be issued pursuant to this Agreement.

		
	(h)
	Neither the Award, nor any interest therein nor shares of Jacobs Common Stock payable in respect thereof may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered, either voluntarily or involuntarily. 

3.Section 409A Compliance
Notwithstanding any other provision of the Plan or this Agreement to the contrary, the Plan and this Agreement shall be construed or deemed to be amended as necessary to comply with the requirements of Section 409A of the Code, to avoid the imposition of any additional or accelerated taxes or other penalties under Section 409A of the Code.  The Committee, in its sole discretion, shall determine the requirements of Section 409A of the Code applicable to the Plan and this Agreement and shall interpret the terms of each consistently therewith.  Under no circumstances, however, shall the Company have any liability under the Plan or this Agreement for any taxes, penalties or interest due on amounts paid or payable pursuant to the Plan and/or this Agreement or any EDP Deferral Election, including any taxes, penalties or interest imposed under Section 409A of the Code.  Notwithstanding anything to the contrary contained in this Agreement, to the extent that any payment or benefit under this Agreement, or any other plan or arrangement of the Company or its affiliates, is determined by the Company to constitute “non-qualified deferred compensation” subject to Section 409A and is payable to Employee by reason of Employee’s termination of employment, then (a) such payment or benefit shall be made or provided to Employee only upon a “separation from service” as defined for purposes of Section 409A under applicable regulations and (b) if Employee is a “specified employee” (within the meaning of Section 409A and as determined by the Company), such payment or benefit shall not be made or provided before the date that is six months after the date of Employee’s separation from service (or Employee’s 

Jacobs Engineering Group Inc.
Restricted Stock Unit Agreement 
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earlier death).  Each payment under this Agreement will be treated as a separate payment under Section 409A of the Code.  
4.Status of Participant
Except as set forth in this section, Employee shall have no rights as a stockholder (including, without limitation, any voting rights or rights to receive dividends with respect to the shares of Jacobs Common Stock subject to the Award) with respect to either the Award granted hereunder or the shares of Jacobs Common Stock underlying the Award, unless and until such shares are issued in respect of Vested Units, and then only to the extent of such issued shares.
Notwithstanding the foregoing, the Employee is entitled to a “Dividend Equivalent Right” under the EDP with respect to each Vested Unit for which delivery of the underlying share of Common Stock has been deferred pursuant to an EDP Deferral Election, to the extent the Company pays any cash dividend with respect to outstanding Jacobs Common Stock on or after the date on which such Vested Unit is deferred and while such Vested Unit remains outstanding. The term “Dividend Equivalent Right” shall mean a dollar amount equal to the per-share cash dividend paid by the Company.  Any Dividend Equivalent Right will be subject to the same payment and other terms and conditions (including, if applicable, the terms of the EDP and EDP Deferral Election) as the Vested Unit to which it relates.  
Except as otherwise provided under the terms of the EDP or EDP Deferral Election, if applicable: (a) any vested Dividend Equivalent Right with respect to Vested Units will be paid to the Employee in cash at the same time the underlying share of Common Stock is delivered to the Employee; and (b) the Employee will not be credited with Dividend Equivalent Rights with respect to any Restricted Stock Unit prior to vesting or to any Restricted Stock Unit that, as of the record date for the relevant dividend, is no longer outstanding for any reason (e.g., because it has been settled in Common Stock or has been terminated), and the Employee will not be entitled to any payment for Dividend Equivalent Rights with respect to any Restricted Stock Unit that terminates without vesting.  For purposes of this Agreement, a Vested Unit that has not yet been settled (e.g., because of an EDP Deferral Election) shall be considered outstanding for purposes of this Section 4.
No shares may be issued in respect of Vested Units if, in the opinion of counsel for the Company, all then applicable requirements of the Securities and Exchange Commission and any other regulatory agencies having jurisdiction and of any stock exchange upon which the shares of the Company may be listed are not fully met, and, as a condition of the issuance of shares, Employee shall take all such action as counsel may advise is necessary for Employee to take to meet such requirements.
5.Nature of Award
In accepting the Award, Employee acknowledges, understands and agrees that:
		
	(a)
	The Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;

		
	(b)
	The Award of the Restricted Stock Units hereunder is voluntary and occasional and does not create any contractual or other right to receive future Awards of Restricted 

Jacobs Engineering Group Inc.
Restricted Stock Unit Agreement 
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Stock Units, or any benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been awarded in the past; 
		
	(c)
	All decisions with respect to future Restricted Stock Unit or other awards, if any, will be at the sole discretion of the Company; 

		
	(d)
	The Award and Employee’s participation in the Plan shall not create a right to employment or be interpreted as forming an employment or services contract with the Company, or any Related Companies and shall not interfere with the ability of the Company, or any Related Company, as applicable, to terminate Employee’s employment or service relationship (if any); 

		
	(e)
	The Award and the shares of Jacobs Common Stock subject to the Award, the value of same, and any ultimate gain, loss, income or expense associated with the Award are not part of Employee’s normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments; 

		
	(f)
	No claim or entitlement to compensation or damages shall arise from forfeiture of the Award for any reason, including forfeiture resulting from Employee ceasing to provide employment or other services to the Company or any Related Company (for any reason whatsoever whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Employee is employed or the terms of Employee’s employment agreement, if any), and in consideration of the Award to which Employee is otherwise not entitled, Employee irrevocably agrees never to institute or allow to be instituted on his or her behalf any claim against the Company or any of its Related Companies, waives his or her ability, if any, to bring any such claim, and releases the Company and any Related Companies from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Employee shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim.

6.Data Privacy
Employee understands that the Company and/or a Related Company may hold certain personal information about the Employee in connection with this Agreement (including the terms of the EDP and EDP Deferral Election to the extent applicable under Section 1), including, but not limited to, Employee’s name, home address and telephone number, date of birth, social security number or other identification number, salary, nationality, job title, any shares of Jacobs Common Stock or directorships held in the Company, details of all Awards or any other entitlement to shares of Jacobs Common Stock awarded, canceled, exercised, vested, unvested or outstanding in Employee’s favor, for the exclusive purpose of implementing, administering and managing the Plan and this Agreement (“Data”). 
Employee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Employee’s personal Data by and among, as applicable, the Company 

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Restricted Stock Unit Agreement 
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and its Related Companies for the exclusive purpose of implementing, administering and managing Employee’s participation in the Plan and under this Agreement.
Employee understands that Data will be transferred to the Company’s broker, administrative agents or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan.  Employee understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country or countries in which such recipients reside or operate (e.g., the United States) may have different data privacy laws and protections than Employee’s country.  Employee understands that if he or she resides outside the United States, 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.  Employee understands that Data will be held only as long as is necessary to implement, administer and manage Employee’s participation in the Plan and this Agreement or as required under applicable law. 
7.Payment of Withholding Taxes
Employee acknowledges that, regardless of any action taken by the Company or Related Companies or, if different, Employee’s employer (the “Employer”) the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to Employee’s participation in the Plan and legally applicable to Employee or deemed by the Company, Related Company or the Employer in its discretion to be an appropriate charge to Employee even if legally applicable to the Company, Related Company or the Employer (“Tax-Related Items”), is and remains Employee’s responsibility and may exceed the amount actually withheld by the Company, Related Company or the Employer. Employee further acknowledges and agrees that the Company or Related Company and/or the Employer may, if it so determines, offset any Employer tax liabilities deemed applicable to Employee by reducing the shares of Jacobs Common Stock otherwise deliverable to Employee pursuant to this Agreement.  Employee further acknowledges that the Company, Related Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Restricted Stock Units including, but not limited to, the grant, vesting or settlement of the Restricted Stock Units, the subsequent sale of shares of Jacobs Common Stock acquired pursuant to such settlement; and (2) do not commit to and are under no obligation to structure the terms of the Award or any aspect of the Restricted Stock Units to reduce or eliminate Employee’s liability for Tax-Related Items or achieve any particular tax result.  Further, if Employee is subject to Tax-Related Items in more than one jurisdiction between the Award Date and the date of any relevant taxable or tax withholding event, as applicable, Employee acknowledges that the Company, Related Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  The Company may refuse to issue or deliver any shares of Jacobs Common Stock to the Employee until the obligation for any Tax-Related Items due in connection with the Award has been satisfied.  
Under no circumstances can the Company be required to withhold from the shares of Jacobs Common Stock that would otherwise be delivered to Employee upon settlement of the Award a number of shares having a total Fair Market Value that exceeds the amount of withholding taxes as determined by the Company at the time the Award vests. 
8.Services as Employee

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Restricted Stock Unit Agreement 
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Employee shall not be deemed to have ceased to be employed by the Company (or any Related Company) for purposes of this Agreement by reason of Employee’s transfer to a Related Company (or to the Company or to another Related Company). The Committee may determine that, for purposes of this Agreement, Employee shall be considered as still in the employ of the Company or of the Related Company while on leave of absence. 
Nothing contained in this Agreement or the Plan constitutes an employment or service commitment by the Company or any Related Company, affects the Employee’s status as an employee at will who is subject to termination without cause, confers upon the Employee any right to remain employed by or in service to the Company or any Related Company, interferes in any way with the right of the Company or any Related Company, as applicable, at any time to terminate such employment or services, or affects the right of the Company or any Related Company, as applicable, to increase or decrease the Employee’s other compensation or benefits. Nothing in this paragraph, however, is intended to adversely affect any independent contractual right of the Employee without his or her consent thereto.
9.Miscellaneous Provisions
This Agreement is governed in all respects by the Plan and applicable law.  In the event of any inconsistency between the terms of the Plan and this Agreement, the terms of the Plan shall prevail.  Subject to the limitations of the Plan, the Company may, with the written consent of Employee, amend this Agreement.  This Agreement shall be construed, administered and enforced according to the laws of the State of Delaware. 
10.Clawback
Employee agrees that if Employee is or becomes a Section 16 executive officer of the Company, in the event of any Inaccurate Financial Statement, Employee will return to the Company on demand all incentive-based compensation payments (whether under this Award, the Plan or otherwise) made to Employee during the 3-year period preceding the date on which the Company is required to prepare an accounting restatement that are in excess of what would have been paid had such incentive-based compensation instead been determined under the accounting restatement (the “Payments”).  In addition, Employee agrees to application of any clawback, forfeiture, recoupment, or similar requirement required to apply to incentive-based compensation granted to Employee under any current or future applicable law or listing standard or regulatory body requirement.  An “Inaccurate Financial Statement” is any inaccurate financial statement due to material noncompliance by the Company with any financial reporting requirements under the securities laws.
11.Agreement of Employee
By signing below or electronically accepting this Award, Employee (1) agrees to the terms and conditions of this Agreement, (2) confirms receipt of a copy of the Plan and all amendments and supplements thereto, and (3) appoints the officers of the Company as Employee's true and lawful attorney-in-fact, with full power of substitution in the premises, granting to each full power and authority to do and perform any and every act whatsoever requisite, necessary, or proper to be done, on behalf of Employee which, in the opinion of such attorney-in-fact, is necessary or prudent to effect the forfeiture of the Award to the Company, or the delivery of the Jacobs Common Stock to Employee, in accordance with the terms and conditions of this Agreement. 

Jacobs Engineering Group Inc.
Restricted Stock Unit Agreement 
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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set forth above. 

JACOBS ENGINEERING GROUP INC.

By: /s/ Steven J. Demetriou         
   Steven J. Demetriou 
Chairman and Chief Executive OfficerExhibit

Exhibit 4.12

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE OMISSIONS HAVE BEEN INDICATED BY ASTERISKS (“[***]”), AND THE OMITTED TEXT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (this “MOU”) is entered into as of January 23, 2019 (“MOU Date”) by and among Nikon Corporation, a corporation organized under the laws of Japan (“Nikon”), ASML Holding N.V., a corporation organized under the laws of the Netherlands (“ASML”), Carl Zeiss SMT GmbH (“Zeiss SMT”) and, with regard to Sections 3(b) only, Carl Zeiss AG (“Carl Zeiss”), both companies organized under the laws of Germany. Nikon, ASML and Zeiss SMT are hereinafter also referred to collectively as the “Parties” and each individually as a “Party.”

RECITALS
A.    Nikon, ASML, Carl Zeiss, and Zeiss SMT are parties to certain litigation, International Trade Commission, opposition, inter partes review, and other proceedings, including without limitation those listed in Exhibit A (collectively, “Pending Proceedings”).
B.    The Parties are entering into this MOU to memorialize their mutual understanding of the material terms upon which they wish to settle, dismiss, and terminate the Pending Proceedings and to grant each other certain rights under their respective current and future patents.  The Parties will promptly negotiate in good faith a definitive settlement, release, and license agreement (“Definitive Agreement”) to give effect to the terms of settlement described in Exhibit B hereof and the other terms set forth herein.  
1.    Definitions.  When used in this MOU, the following terms shall have the meanings ascribed to them below:
“Affiliate” means, with respect to an entity, any other entity that controls, is controlled by or is under common control with such first entity, where “control” means possession, directly or indirectly, of the power to direct or cause the direction of management, business affairs or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise).  For avoidance of doubt, [***] and its subsidiaries are not Affiliates of Carl Zeiss and Zeiss SMT for purposes hereof and the Definitive Agreement.
“Completion Date” means February 6, 2019 (Japan Time) or such date as may be extended by mutual consent of the Parties, which consent shall not be unreasonably withheld.
“Designated Neutral” means the Honorable [***] or, if he is unable or unwilling to perform any particular function, a substitute of comparable experience who is mutually agreeable to the relevant Parties.
“Payment” means the payment of One Hundred Fifty Million Euros (€150,000,000.00) to be made to Nikon as set forth in the “Consideration For Rights Conveyed” section of Exhibit B. 
“Pending Proceedings” has the meaning set forth in Recital A hereof.

2.    Pending Proceedings.  The Parties, upon the MOU Date, shall confer about and take appropriate actions, to the extent reasonably practicable without compromising any underlying action, for suspending or rescheduling activities in the Pending Proceedings. For purposes of clarification, the foregoing sentence does not require any Party to seek dismissal of any Pending Proceedings prior to completion and execution of the Definitive Agreement. 
3.    Definitive Agreement.
(a)    Nikon/ASML/Zeiss SMT.  The Parties will negotiate in good faith a Definitive Agreement consistent with and to give effect to the terms set forth in Exhibit B attached hereto, which is hereby incorporated by reference, and containing terms precluding the circumvention of the parties’ agreement and such other terms and conditions as the Parties may reasonably agree.
(b)    Carl Zeiss.  Carl Zeiss will authorize Zeiss SMT to enter into the Definitive Agreement and grant the releases, licenses, and other rights granted therein on behalf of itself and Carl Zeiss and all of their other Affiliates. 
(c)    Drafting of Agreements.  The Parties agree that the initial draft of the Definitive Agreement will be prepared by Nikon and distributed on or before January 23, 2019, PST.  ASML and Zeiss will review, revise, and respond to Nikon’s initial draft on or before January 28, 2019, PST.  The parties will then jointly confer with the Designated Neutral on or before January 30, 2019 regarding their drafting progress.  Each of the foregoing dates may be extended by mutual consent of the Parties, which consent shall not be unreasonably withheld.  The Parties will work diligently and in good faith to complete and execute the Definitive Agreement on or before the Completion Date.  The Parties agree to seek the assistance of the Designated Neutral if required to resolve any disagreements over the terms of the Definitive Agreement.
(d)    Payments.  The Payment shall be made on terms as set forth in the Definitive Agreement.  The Payment and the running royalties set forth in the “Consideration For Rights Conveyed” section of Exhibit B shall be the sole monetary consideration for the rights conveyed in the Definitive Agreement, and no other payments are due under the Definitive Agreement from a Party to another Party.
4.    Failure to Complete Agreements.  If the Parties cannot reach agreement on all terms of the Definitive Agreement by the Completion Date, then the Designated Neutral will have full authority and discretion to decide any remaining disputes so as to complete the Definitive Agreement to give effect to the terms in Exhibit B, which the Parties request occur no later than five (5) days after the Completion Date.  The Parties will execute the Definitive Agreement as so completed by the Designated Neutral within five (5) days.
5.    Joint Press Release.  The Parties agree to the joint press release attached hereto as Exhibit C, which is hereby incorporated by reference, and agree that such press release may be issued by any of the Parties at or after 7 a.m. CET/3 p.m. JST on Wednesday, January 23, 2019.
6.    Confidentiality.  Other than as set forth in the press release described in Section 5, the terms of the settlement among the Parties, including the terms of this MOU and the exhibits hereto, constitute confidential information of each Party, and no Party will disclose any such terms to any third party without the prior written consent of each of the other two Parties, except that each Party may disclose the terms of this MOU (including the exhibits hereto) (a) to the extent reasonably necessary, in confidence, to its legal counsel and accountants, (b) as requested by any governmental agency or court or required by any applicable law or the applicable rules or regulations of any securities exchange on which any of such Party’s securities are listed (in each case as determined by such Party upon advice of counsel), provided that prior to any such 

required disclosure, the disclosing Party minimizes the scope of such disclosure (including by making redactions to documents provided as part of such disclosure) to the extent permitted under applicable law and coordinates with the other Parties with respect to the scope of such disclosure, or (c) to Judge [***] including in connection with the procedure described in paragraph 4 and otherwise in connection with the enforcement of this MOU or the Definitive Agreement.  The Parties shall discuss the appropriate scope of confidentiality applicable to the Definitive Agreement, including the extent to which terms relevant to Covered Entities may be disclosed to them, and the circumstances under which such disclosures may be made.
7.    Representations and Warranties. Each Party represents and warrants to the other Parties as follows:
(a)    Authority. Such Party has all requisite corporate power and authority to execute and deliver this MOU and to carry out the provisions of this MOU. The execution, delivery and performance by such Party of this MOU have been approved by all requisite action on the part of such Party, and no other corporate proceeding on the part of such Party is necessary to authorize this MOU.
(b)    No Conflicts. Such Party’s execution, delivery and performance of this MOU do not and will not conflict with, violate or result in any breach of any relevant law or any provision of any license, agreement, contract, understanding, arrangement, commitment or undertaking of any nature (whether written or oral) to which such Party is a party.
8.    Governing Law.  This MOU is to be construed in accordance with and governed by the internal laws of the State of New York, U.S.A. without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of New York to the rights and duties of the Parties.
9.    Severability. If any provision of any license granted to a Party, including any restriction or condition on such license, is found to be unenforceable, the Parties agree that all three Parties will negotiate in good faith a valid and enforceable substitute provision for the unenforceable provision that achieves, to the greatest extent possible, the original intent of the Parties.
10.    Binding MOU.  Each Party agrees that the terms of this MOU are valid, legally binding on, and enforceable against such Party. 
11.    Dispute Resolution.  It is hereby stipulated and agreed among the Parties to submit all disputes and controversies as to the interpretation and enforcement of this MOU to neutral, binding arbitration before the Designated Neutral, pursuant to Commercial Arbitration Rules and JAMS Arbitration Administrative Policies.  The Parties hereby give up any rights they might have to have such disputes decided in a court or jury trial. The Parties agree that the Designated Neutral shall serve as arbitrator and that after he and the other Parties receive written notice of a request for such arbitration, he shall cease any ex parte communications with the Parties.
12.    Miscellaneous.  No Party may assign, delegate or otherwise transfer any of its rights or obligations under this MOU to any other person without the prior written consent of the other Parties. Any purported or attempted assignment, delegation or other transfer of any rights or obligations under this MOU in contravention of the foregoing sentence shall be null and void. Subject to the foregoing, this MOU shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns. This MOU (including the Exhibits hereto) constitutes the full and entire understanding and agreement between the Parties with regard to the subject matter hereof, and supersedes any communications, 

representations, understandings and agreements, either oral or written, between the Parties prior to, but not on the date hereof, with respect to such subject matter (but does not supersede any written executed agreements signed by authorized representatives of the Parties). This MOU may not be altered or amended except by a written instrument signed by authorized legal representatives of all Parties. Any waiver of the provisions of this MOU or of a Party’s rights or remedies under this MOU must be in writing to be effective.

IN WITNESS WHEREOF, the Parties and Carl Zeiss have caused this MOU to be executed and delivered by their respective duly authorized representatives as of the date first above written.
[SIGNATURE PAGES TO FOLLOW]

Nikon Corporation                ASML Holding N.V.
By: /s/ Masashi Oka                By: /s/ P.T.F.M. Wennink    
Name:    Masashi Oka                Name: P.T.F.M. Wennink
Title: Representative Director, Senior     Title: President & CEO
Executive Vice President & CFO            

Carl Zeiss SMT GmbH            ASML Holding N.V.    
By: /s/ Dr. Karl Lamprecht            By: /s/ M.A. van den Brink    
Name:    Dr. Karl Lamprecht            Name:    M.A. van den Brink
Title: CEO                    Title: President & CTO    

By: /s/ Dr. Andreas Zeiler    
Name:    Dr. Andreas Zeiler    
Title: VP Intellectual Property

Carl Zeiss AG
By: /s/ Dr. Karl Lamprecht                
Name:    Dr. Karl Lamprecht
Title: Member of the Board

By: /s/ Ulrich Hoffmann                
Name:    Ulrich Hoffmann
Title: SVP, General Counsel

EXHIBIT A
Pending Proceedings
Court of Appeal of The Hague, Case No. 200.246.142, 
Court of Appeal of The Hague, Case No. 200.249.089
Court of Appeal of The Hague, Case No. 200.249.121
Court of Appeal of The Hague, Case No. 200.250.327
Court of Appeal of The Hague re incident Zeiss in C/09/553926 [Case No. not yet assigned]
Court of Appeal of The Hague re incident Zeiss in C/09/552858 [Case No. not yet assigned]
Court of Appeal of The Hague re incident Zeiss in C/09/550816 [Case No. not yet assigned]
District Court of The Hague, Case No. C/09/537395
District Court of The Hague, Case No. C/09/539155
District Court of The Hague, Case No. C/09/541038
District Court of The Hague, Case No. C/09/542245
District Court of The Hague, Case No. C/09/543446
District Court of The Hague, Case No. C/09/546837
District Court of The Hague, Case No. C/09/547803
District Court of The Hague, Case No. C/09/548890
District Court of The Hague, Case No. C/09/550816
District Court of The Hague, Case No. C/09/552858
District Court of The Hague, Case No. C/09/553926
District Court of The Hague, Case No. C/09/555962
District Court of The Hague, Case No. C/09/564829
District Court of The Hague, Case No. C/09/566317
District Court of The Hague, Case No. C/09/566318
District Court of The Hague, Case No. C/09/566718
District Court of The Hague re infringement EP3098835, [Case No. unknown or not yet assigned]
District Court of The Hague re invalidity EP1837895, [Case No. not yet assigned]

District Court of The Hague re invalidity EP1667211, [Case No. not yet assigned]

District Court of The Hague re invalidity EP1672681, [Case No. not yet assigned]

District Court of The Hague re invalidity EP1860684, [Case No. not yet assigned]

District Court of The Hague re invalidity EP1760528, [Case No. not yet assigned]

District Court of The Hague re invalidity EP2278402, [Case No. not yet assigned]

District Court of Amsterdam, Case No. C/13/629347

Federal Patent Court (Munich), Case No. 2 Ni 45/17 (EP)
Federal Patent Court (Munich), Case No. 2 Ni 46/17 (EP)
Higher regional court of Karlsruhe, Case No. 6 U 47/18 
Mannheim District Court, Case No. 7 O 79/17
Mannheim District Court, Case No. 7 O 155/17, which was branched off as separate proceeding of Case No. 7 O 79/17,
Mannheim District Court, re infringement EP2645406 [Case Nos. not yet assigned]
Mannheim District Court re infringement EP2615479, [Case No. not yet assigned]
Tribunal de Grande Instance de Paris, 3ème chambre 1ère section (17/12180)
European Commission Case AT. 40601
Tokyo District Court (Div. 29) (Heisei30-wa-7874) (Japan)
Tokyo District Court (Div. 29) (Heisei29-wa-14297) (Japan)
Tokyo District Court (Div. 29) (Heisei29-wa-14357) (Japan)
Tokyo District Court (Div. 29) (Heisei29-wa-17476) (Japan)
Tokyo District Court (Div. 29) (Heisei29-yo-22032) (Japan)
Tokyo District Court (Div. 29) (Heisei29-wa-27578) (Japan) 
Tokyo District Court  (Div. 40) (Heisei29-wa-13532) (Japan)
Tokyo District Court (Div. 40) (Heisei29-wa-14298) (Japan)
Tokyo District Court (Div. 46) (Heisei29-wa-13535) (Japan)
Tokyo District Court (Div. 46) (Heisei29-wa-14356) (Japan)
Tokyo District Court (Div. 46) (Heisei29-yo-22050) (Japan)

Tokyo District Court (Div. 46) (Heisei29-wa-31146) (Japan)  
Tokyo District Court (Div. 47) (Heisei29-yo-22033) (Japan)
Tokyo District Court (Div. 47) (Heisei29-wa-27577) (Japan)
Tokyo District Court (Div. 47) (Heisei29-yo-22051) (Japan)
Tokyo District Court (Div. 47) (Heisei29-wa-30820) (Japan)
Japan Patent Office (2017-800133) (Invalidation trial against JP4987301) (Japan)
Japan Patent Office (2018-800074) (Invalidation trial against JP4791421) (Japan)
Japan Patent Office (2018-800147) (Invalidation trial against JP4776551) (Japan)
Japan Patent Office (2018-800150) (Invalidation trial against JP5462739) (Japan) 
International Centre for Dispute Resolution, Case No. 01-18-0002-1823
USITC, Case No. 337-TA-1059
USITC, Case No. 337-TA-1128
USITC, Case No. 337-TA-1129
USITC, Case No. 337-TA-1137
N.D. Cal., Case No. 3:18-cv-04403
N.D. Cal., Case No. 3:18-cv-05592
N.D. Cal., Case No. 17-mc-80071-BLF-SVK
N.D. Cal., Case No. 18-mc-80051-EDL
N.D. Cal., Case No. 18-mc-80070-EDL 
C.D. Cal., Case No. 2:17-cv-03221, on appeal to the United States Court of Appeals for the Federal Circuit, Case No. 2019-1068
C.D. Cal., Case No. 2:17-cv-03225
C.D. Cal., Case No. 2:17-cv-07083
C.D. Cal., Case No. 2:17-cv-07084
D. Ariz., Case No. 2:17-mc-00035-JJT
E.D.N.Y., Civil Action No. 18-mc-01278-ADS
PTAB (IPR2018-00220)

PTAB (IPR2018-00227)
PTAB (IPR2018-00686)
PTAB (IPR2018-00687)
PTAB (IPR2018-00688)
EPO opposition proceedings re EP1780722 (reference X.15611); oral proceedings are scheduled to take place on Wednesday, October 16, 2019 in Munich.
 EPO Board of Appeal Number T1917/15-3.4.02 (EPO); oral proceedings are scheduled to take place on Wednesday, January 23, 2019 in Munich.
EPO Board of Appeal Number T1153/15-3.4.02 (EPO); oral proceedings are scheduled to take place on Wednesday, March 13, 2019 in Munich.
Case No. 4W102506 (China)
Case No. 4W102505 (China)
Case No. 4W102507 (China)

EXHIBIT B
MATERIAL TERMS OF SETTLEMENT
	
		
	Topic
	Key Terms

	Parties
	The parties to the agreement will be ASML Holding N.V. (“ASML”), Nikon Corporation (“Nikon”), and Carl Zeiss SMT GmbH (“Zeiss”).

The licenses will benefit each party and that party’s direct, and indirect controlled current and future subsidiaries (collectively, “Subsidiaries”) and, in the case of Zeiss with respect to Digital Cameras, Carl Zeiss AG and its Subsidiaries.  

Patents are licensed regardless where they are held within a group of affiliated companies, thus a “Grantor” means a party and its affiliates (i.e., any entity that directly or indirectly, controls, is controlled by, or is under common control either with Nikon or with ASML or Zeiss, individually or jointly).

	Licensed Patents
	“Licensed Patents” of a Grantor means all Patents (as defined in the 2004 agreements) that are Licensable by that Grantor at any time during the Term, and for purposes of the Post-Term provision herein means all Patents with an Effective Application Date (as defined in the 2004 agreements) before the end of the Term.

A patent is “Licensable” by a Grantor, if that Grantor (a) owns that patent, or (b) has the right to license that patent, without that license resulting in a requirement to make a payment to any person or entity that is not an affiliate or a current or former employee of that Grantor.

	 
	Conversion rights.  ASML and Zeiss jointly on the one hand and Nikon on the other each shall have the right to convert up to twenty (20) Licensed Patent families into permanently licensed patents.  Any patent (“Second Patent”) having one or more claims that are not inventive over the subject matter disclosed in any patent within a converted Licensed Patent family if such patent were full prior art to that Second Patent, shall be deemed a member of the converted Licensed Patent family.  For the avoidance of doubt, a claim of a Second Patent is not inventive under this provision if any converted Licensed Patent, alone or in combination with other prior art, would render the claim anticipated or obvious if that converted Licensed Patent were full prior art to the Second Patent.  Conversion rights are exercisable at any time on or before 6 months after expiration of the Term.  Upon exercise of a Conversion right by a Party, the license and immunities as granted in the Definitive Agreement under the relevant converted patents will become perpetual, retroactive as of the Effective Application Date of the converted Licensed Patent family, and a Nikon Licensed Patent family converted jointly by ASML and Zeiss to permanently licensed shall be permanently licensed to both.  

	
		
	Licensed Products
	“ASML Licensed Products” means lithography equipment (including EUV Lithography Products) and components for use in lithography equipment (including EUV Lithography Products) that are designed, made, have made, used, sold, offered for sale, or imported by or on behalf of ASML or its Subsidiaries, and all applications therefor, as well as such other products as may be agreed by the parties; but excluding ASML Excluded Products and components for ASML Excluded Products.  For purposes of clarification, lithography equipment and components licensed pursuant hereto are licensed in their entirety, including any third-party components and materials thereof or therefor that were not designed by or for ASML or its Subsidiaries.

	 
	“Nikon Licensed Products” means (1) lithography equipment (including FPD/Large Area Substrate Products) and components for use in lithography equipment (including FPD/Large Area Substrate Products) and (2) Digital Cameras, in each case that are designed, made, have made, used, sold, offered for sale, or imported by or on behalf of Nikon or its Subsidiaries, and all applications therefor, as well as such other products as may be agreed by the parties; but excluding Nikon Excluded Products and components for Nikon Excluded Products.  For purposes of clarification, lithography equipment and components and Digital Cameras licensed pursuant hereto are licensed in their entirety, including any third-party components and materials thereof or therefor that were not designed by or for Nikon or its Subsidiaries.

	 
	“Zeiss Licensed Products” means (1) components for use in lithography equipment (including EUV Lithography Products) and (2) Zeiss Digital Cameras, in each case that are designed, made, have made, used, sold, offered for sale, or imported by or on behalf of Zeiss (or, with regard to Zeiss Digital Cameras, Carl Zeiss AG) or its Subsidiaries, and all applications therefor, as well as such other products as may be agreed by the parties; but excluding components for Zeiss Excluded Products.  For purposes of clarification, components for use in lithography equipment and Zeiss Digital Cameras licensed pursuant hereto are licensed in their entirety, including any third-party components and materials thereof or therefor that were not designed by or for Zeiss or its Subsidiaries.

	 
	“EUV Lithography Products” means lithography systems that image using radiation with wavelengths of 20 nanometers or less, and all components thereof and therefor. 

	 
	“FPD/Large Area Substrate Products” means products (including lithography equipment) for the manufacture of flat panel displays or substrates having a dimension greater than 500 mm along any dimension. For the avoidance of doubt, this definition does not include products for the manufacture of semiconductor wafers of any size.

	 
	“Digital Camera” means a complete digital camera or digital camera body for personal or professional photography (including video) use. “Digital Camera” does not include microscopes, medical imaging equipment, or stand-alone lenses.

	 
	“Zeiss Digital Camera” means (a) Zeiss’s ZX1 Digital Camera, and (b) future Digital Cameras [***].

	 
	[***].

	
		
	 
	Licenses granted will not cover activities in which a licensee or its affiliates act as a foundry or conduit for a third party or takes title to third party products for the purpose of “laundering” such products from claims of infringement under the patents of a licensor Party.

	Exclusions
	“ASML Excluded Products” means FPD/Large Area Substrate Products.

“Nikon Excluded Products” means (a) EUV Lithography Products; and (b) laser sources [***].

“Zeiss Excluded Products” means FPD/Large Area Substrate Products.

	Supplier Covenants
	[***].

	Territory
	Worldwide

	Grant
	Nikon to ASML. Nikon, on its own behalf and on behalf of its other Grantor entities, grants to ASML and its Subsidiaries, a worldwide, non-exclusive, non-sublicensable, non-transferable license, under Nikon’s Licensed Patents, to make, have made, use, sell, offer for sale, and import ASML Licensed Products during the Term, and permanently for any Converted Licensed Patent family.

	 
	Nikon to Zeiss. Nikon, on its own behalf and on behalf of its other Grantor entities, grants to Zeiss and its Subsidiaries, a worldwide, non-exclusive, non- sublicensable, non-transferable license, under Nikon’s Licensed Patents, to make, have made, use, sell, offer for sale, and import Zeiss Licensed Products during the Term, and permanently for any Converted Licensed Patent family.

	 
	ASML to Nikon. ASML, on its own behalf and on behalf of its other Grantor entities, grants to Nikon and its Subsidiaries, a worldwide, non-exclusive, non-sublicensable, non-transferable license, under ASML’s Licensed Patents, to make, have made, use, sell, offer for sale, and import Nikon Licensed Products during the Term, and permanently for any Converted Licensed Patent family.

	 
	Zeiss to Nikon. Zeiss, on its own behalf and on behalf of its other Grantor entities, grants to Nikon and its Subsidiaries, a worldwide, non-exclusive, non-sublicensable, non-transferable license, under Zeiss’s Licensed Patents, to make, have made, use, sell, offer for sale, and import Nikon Licensed Products during the Term, and permanently for any Converted Licensed Patent family.

	Immunities
	Immunity for Licensed Products: Language from 2004 agreements, including defensive suspension (strikeback) rights against [***], with the following modifications:
[***].
 

	
		
	Release
	Each licensor Party, on its own behalf and on behalf of its other Grantor entities, releases each licensee Party and its Subsidiaries (that are Subsidiaries on the effective date of the agreement) and Carl Zeiss AG, from any and all claims or liability for infringement of the licensor Party’s Licensed Patents, which claims or liability are based on (as defined in the Immunity clause) acts before the effective date of the agreement that would have been licensed under the agreement had they been performed after the effective date of the agreement.

The [***] immunity provisions will apply retroactively to Licensed Products sold before the effective date of the Definitive Agreement. 

	Term
	The “Term” of the agreement and the licenses granted thereunder shall be until ten years from the signature date. Releases, license grants for any Converted Licensed Patent family, and immunities with respect to Licensed Products sold prior to the end of the term, survive beyond the expiration of the Term.  

	 
	Post-Term. After the Term, remedies for infringement of any Patent(s) with an Effective Application Date (as defined in the 2004 agreements) before the end of the Term by the counter-Party’s Licensed Product(s) shall be limited to damages in the form of a reasonable royalty applied against a royalty base that is apportioned to reflect the value of such Licensed Product(s) attributable to the patented features, and exclude from the base any value attributable to unpatented features, as determined by the court . Injunctive relief of any kind (including exclusion orders) shall not be available under such Patents with regard to the counter-Party’s Licensed Product(s).  Whether such Licensed Product(s) infringe any such Licensed Patent(s), all defenses to such a claim, and any such reasonably royalty in the event liability is found, shall be determined by a court mutually agreed upon by the involved Parties, to the extent such court accepts such jurisdiction, and otherwise by any one or more courts of competent jurisdiction.  The Parties agree to select one or more agreed upon courts for the purposes of such Post-Term dispute resolution in their Definitive Agreement.   

	 
	[***]

	Other
	Customary representations and warranties and miscellaneous terms. New York law.

US Term Extensions. To the extent any patent expires outside of the US prior to the expiration of the Term, but due to a patent term extension in the US, one or more US counterpart persists beyond the expiration of the Term, such US counterparts shall be deemed licensed through the expiration of the US term extension.

All pending court, patent, ITC and other proceedings will be dismissed with prejudice in all forums; provided, however, that no Party shall be precluded from challenging the validity of (a) any Licensed Patent expiring after the Term or (b) any patent alleged to cover anything that is not a Licensed Product.

	
		
	Consideration For Rights Conveyed
	ASML/Zeiss to Nikon: As set forth in Section 3(d) of the MOU, ASML and Zeiss collectively will pay to Nikon a sum of One Hundred Fifty Million Euros (€150 million).  

ASML/Zeiss to Nikon: ASML and Zeiss collectively will pay to Nikon a running royalty equal to eight tenths of one percent (0.8%) of the net sales price of entire immersion lithography systems (where for purposes of clarification “net sales price” is determined based on sales revenue booked for a system first shipped to a customer) that are ASML Licensed Products sold during the period commencing on the signature date and continuing for ten (10) years (or made during and sold after that period; where for purposes of clarification an immersion lithography system is made as of the date that it passes final qualification testing).

Nikon to ASML/Zeiss: Nikon will pay to ASML and Zeiss collectively a running royalty equal to eight tenths of one percent (0.8%) of the net sales price of entire immersion lithography systems (where for purposes of clarification “net sales price” is determined based on sales revenue booked for a system first shipped to a customer) that are Nikon Licensed Products sold during the period commencing on the signature date and continuing for ten (10) years (or made during and sold after that period; where for purposes of clarification an immersion lithography system is made as of the date that it passes final qualification testing).

The Definitive Agreement shall allocate responsibility for payment of the aforementioned sum and running royalty to Nikon as between ASML and Zeiss, and to the extent any such amount(s) are jointly owed to Nikon, ASML and Zeiss will be jointly and severally liable for payment of any such amount(s).  

EXHIBIT C
Form of Press Release
NIKON, ASML AND CARL ZEISS SIGN AGREEMENT TO SETTLE ALL LITIGATION
TOKYO, Japan, VELDHOVEN, the Netherlands and OBERKOCHEN, Germany - January 23, 2019 - Nikon Corporation (“Nikon”) (TYO: 7731), ASML Holding N.V. (“ASML”) (NASDAQ: ASML) and Carl Zeiss SMT GmbH (“Zeiss”) have signed a Memorandum of Understanding relating to a comprehensive settlement of all legal proceedings over patents for lithography equipment and digital cameras.
The Memorandum of Understanding is a binding agreement that concerns all pending disputes between Nikon, ASML and Zeiss in Europe, Japan and the United States, including at the U. S. International Trade Commission.  The three companies expect to execute a definitive settlement and cross-license agreement and dismiss all legal proceedings between the parties in February 2019.  The terms of the Memorandum include a payment to Nikon by ASML and Zeiss of a total of EUR 150 million (approximately 19.0 billion Japanese Yen*).  Furthermore, the cross-license agreement contemplated by the Memorandum includes mutual royalty payments of 0.8% over the sales of immersion lithography systems for 10 years from the signature date of the parties’ definitive agreement.
* Based on an exchange rate of 1 EUR = 125 yen

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