Document:

EXHIBIT 10.1

 

 EXHIBIT 10.1
 

 

 THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). 
 NONE OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE 1933 ACT.
 CONFIDENTIAL
PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT
 (Subscribers Resident Outside of the United States)
 

 TO:
 Midwest Oil and Gas Inc. (the “Company”)
 400 West Sycamore Street
 Independence
 KS 67301
 

 Purchase of Shares
 
 1.
 Subscription
 
 1.1
 The undersigned (the “Subscriber”) hereby irrevocably subscribes for and agrees to purchase from the Company, on the basis of the representations and warranties and subject to the terms and conditions set forth herein, 125,000 shares (the “Shares”) at the price of US $0.20 per Share (such subscription and agreement to purchase being the “Subscription”) for the total purchase price of US $25,000 (the “Subscription Proceeds”), in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”).
 
 1.2
 Each Share will consist of one restricted common share in the capital of the Company. The Shares may be referred to as the “Securities”.
 
 1.3
 Subject to the terms hereof, the Subscription will be effective upon its acceptance by the Company.  The Subscriber acknowledges that the offering of the Shares (the “Offering”) contemplated hereby is part a private placement of approximately 125,000 Shares having no maximum subscription level and no minimum aggregate subscription level.
 
 2.
 Payment
 
 2.1
 The Subscription Proceeds must accompany this Subscription and shall be paid by bank wire transfer directly to the Company.
 
 2.2
 The Subscriber acknowledges and agrees that this Subscription Agreement, the Subscription Proceeds and any other documents delivered in connection herewith will be held on behalf of the Company.  In the event that this Subscription Agreement is not accepted by the Company for whatever reason, which the Company expressly reserves the right to do, within 30 days of the delivery of an executed Subscription Agreement by the Subscriber, this Subscription Agreement, the Subscription Proceeds (without interest thereon) and any other documents delivered in connection herewith will be returned to the Subscriber at the address of the Subscriber as set forth in this Subscription Agreement. 
 
 2.3
 Where the Subscription Proceeds are paid to the Company, the Company is entitled to treat such Subscription Proceeds as an interest free loan to the Company until such time as the Subscription is accepted and the certificates representing the Securities have been issued to the Subscriber.
 

 
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 3.
 Documents Required from Subscriber
 
 3.1
 The Subscriber must complete, sign and return to the Company an executed copy of this Subscription Agreement.
 
 3.2
 The Subscriber shall complete, sign and return to the Company as soon as possible, on request by the Company, any documents, questionnaires, notices and undertakings as may be required by regulatory authorities, and applicable law.
 
 4.
 Closing
 
 4.1
 Closing of the offering of the Shares (the “Closing”) shall occur on or before September 11, 2014, or on such other date as may be determined by the Company (the “Closing Date”).
 
 4.2
 The Company may, at its discretion, elect to close the Offering in one or more closings, in which event the Company may agree with one or more subscribers (including the Subscriber hereunder) to complete delivery of the Securities to such subscriber(s) against payment therefor at any time on or prior to the Closing Date.
 
 5.
 Acknowledgements of Subscriber
 
 5.1
 The Subscriber acknowledges and agrees that:
 
 (a)
 none of the Securities have been registered under the 1933 Act, or under any state securities or “blue sky” laws of any state of the United States, and, unless so registered, may not be offered or sold in the United States or, directly or indirectly, to U.S. Persons, as that term is defined in Regulation S under the 1933 Act (“Regulation S”), except in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act and in each case in accordance with applicable state and federal securities laws; 
 
 (b)
 except as provided in this Subscription Agreement, the Subscriber acknowledges that the Company has not undertaken, and will have no obligation, to register any of the Securities under the 1933 Act;
 
 (c)
 the decision to execute this Subscription Agreement and acquire the Securities hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company, and such decision is based entirely upon a review of information (the receipt of which is hereby acknowledged) which has been filed by the Company (the “Public Record”) with the Securities and Exchange Commission (the “SEC”);
 
 (d)
 neither the SEC nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of the Shares;
 
 (e)
 there is no government or other insurance covering any of the Securities;
 
 (f)
 there are risks associated with an investment in the Securities;
 
 (g)
 the Subscriber has not acquired the Shares as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S under the 1933 Act) in the United States in respect of the Shares which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of the Shares pursuant to registration thereof under the 1933 Act and any applicable state and federal securities laws or under an exemption from such registration requirements;
 
 (h)
 the Subscriber and the Subscriber’s advisor(s) have had a reasonable opportunity to ask questions of and receive answers from the Company in connection with the distribution of the 
 

 
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 Securities hereunder, and to obtain additional information, to the extent possessed or obtainable without unreasonable effort or expense, necessary to verify the accuracy of the information about the Company;
 
 (i)
 the Subscriber will indemnify and hold harmless the Company and, where applicable, its directors, officers, employees, agents, advisors and shareholders, from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any representation or warranty of the Subscriber contained herein or in any document furnished by the Subscriber to the Company in connection herewith being untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber to the Company in connection therewith;
 
 (j)
 none of the Securities are listed on any stock exchange or automated dealer quotation system and no representation has been made to the Subscriber that any of the Securities will become listed on any stock exchange or automated dealer quotation system, except that currently market makers make a market for the Company’s common shares on the FINRA’s OTC Bulletin Board;
 
 (k)
 the Company will refuse to register any transfer of the Shares not made in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act or pursuant to an available exemption from the registration requirements of the 1933 Act and in accordance with applicable state and federal securities laws;
 
 (l)
 the statutory and regulatory basis for the exemption claimed for the offer of the Shares, although in technical compliance with Regulation S, would not be available if the offering is part of a plan or scheme to evade the registration provisions of the 1933 Act or any applicable state and federal securities laws; 
 
 (m)
 the Subscriber has been advised to consult the Subscriber’s own legal, tax and other advisors with respect to the merits and risks of an investment in the Shares and with respect to applicable resale restrictions, and it is solely responsible (and the Company is not in any way responsible) for compliance with:
 
 (i)
 any applicable laws of the jurisdiction in which the Subscriber is resident in connection with the distribution of the Shares hereunder, and
 
 (ii)
 applicable resale restrictions; and
 
 (n)
 this Subscription Agreement is not enforceable by the Subscriber unless it has been accepted by the Company, and the Subscriber acknowledges and agrees that the Company reserves the right to reject any subscription for any reason.
 
 6.
 Representations, Warranties and Covenants of the Subscriber
 
 (a)
 The Subscriber hereby represents and warrants to and covenants with the Company (which representations, warranties and covenants shall survive the Closing) that:
 
 (b)
 the Subscriber has the legal capacity and competence to enter into and execute this Subscription Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporation, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber;
 
 (c)
 the entering into of this Subscription Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to the 
 

 
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 Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
 
 (d)
 the Subscriber has duly executed and delivered this Subscription Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber in accordance with its terms;
 
 (e)
 the Subscriber is acquiring the Securities pursuant to an exemption from the registration and prospectus requirements of applicable securities legislation in all jurisdictions relevant to this Subscription, and, as a consequence, the Subscriber will not be entitled to use most of the civil remedies available under applicable securities legislation and the Subscriber will not receive information that would otherwise be required to be provided to the Subscriber pursuant to applicable securities legislation;
 
 (f)
 the Subscriber is not acquiring the Shares for the account or benefit of, directly or indirectly, any U.S. Person;
 
 (g)
 the Subscriber is not a U.S. Person;
 
 (h)
 the Subscriber is resident in the jurisdiction set out under the heading “Name and Address of Subscriber” on the signature page of this Subscription Agreement;
 
 (i)
 the sale of the Shares to the Subscriber as contemplated in this Subscription Agreement complies with or is exempt from the applicable securities legislation of the jurisdiction of residence of the Subscriber;
 
 (j)
 the Subscriber is outside the United States when receiving and executing this Subscription Agreement and is acquiring the Shares as principal for the Subscriber’s own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalisation thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in such Shares;
 
 (k)
 the Subscriber is not an underwriter of, or dealer in, the common shares of the Company, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Shares;
 
 (l)
 the Subscriber (i) is able to fend for him/her/itself in the Subscription; (ii) has such knowledge and experience in business matters as to be capable of evaluating the merits and risks of its prospective investment in the Shares; and (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;
 
 (m)
 the Subscriber acknowledges that the Subscriber has not acquired the Shares as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S under the 1933 Act) in the United States in respect of the Shares which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Shares; provided, however, that the Subscriber may sell or otherwise dispose of the Shares pursuant to registration of the Shares pursuant to the 1933 Act and any applicable state and federal securities laws or under an exemption from such registration requirements and as otherwise provided herein;
 
 (n)
 the Subscriber is not aware of any advertisement of any of the Securities and is not acquiring the Shares as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising; and
 
 (o)
 no person has made to the Subscriber any written or oral representations:
 
 (i)
 that any person will resell or repurchase any of the Securities;
 

 
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 (ii)
 that any person will refund the purchase price of any of the Securities;
 
 (iii)
 as to the future price or value of any of the Securities; or
 
 (iv)
 that any of the Securities will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the Securities of the Company on any stock exchange or automated dealer quotation system.
 
 7.
 Representations and Warranties of the Company
 
 7.1
 The Company acknowledges and agrees that the Subscriber is entitled to rely upon the representations and warranties of the Company contained in this Agreement and further acknowledges that the Subscriber will be relying upon such representations and warranties in purchasing the Shares.
 
 7.2
 The Company warrants that the Public Record fairly represents the status of the Company as at the dates indicated in the Public Record.
 
 8.
 Representations and Warranties will be Relied Upon by the Company
 
 8.1
 The Subscriber acknowledges that the representations and warranties contained herein are made by it with the intention that they may be relied upon by the Company and its legal counsel in determining the Subscriber’s eligibility to purchase the Shares under applicable securities legislation, or (if applicable) the eligibility of others on whose behalf it is contracting hereunder to purchase the Shares under applicable securities legislation.  The Subscriber further agrees that by accepting delivery of the certificates representing the Securities on the Closing Date, it will be representing and warranting that the representations and warranties contained herein are true and correct as at the Closing Date with the same force and effect as if they had been made by the Subscriber at the Closing Date and that they will survive the purchase by the Subscriber of Shares and will continue in full force and effect notwithstanding any subsequent disposition by the Subscriber of such Shares.
 
 9.
 Legending of Subject Securities
 
 9.1
 The Subscriber hereby acknowledges that that upon the issuance thereof, and until such time as the same is no longer required under the applicable securities laws and regulations, the certificates representing any of the Securities will bear a legend in substantially the following form:
 “THESE SECURITIES WERE ISSUED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).  ACCORDINGLY, NONE OF THE SECURITIES TO WHICH THIS CERTIFICATE RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE UNITED STATES OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE 1933 ACT.”
 
 9.2
 The Subscriber hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this Subscription Agreement.
 
 9.3
 The Subscriber hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this Subscription Agreement.
 

 
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 10.
 Costs
 
 10.1
 The Subscriber acknowledges and agrees that all costs and expenses incurred by the Subscriber (including any fees and disbursements of any special counsel retained by the Subscriber) relating to the purchase of the Shares shall be borne by the Subscriber.
 
 11.
 Governing Law
 
 11.1
 This Subscription Agreement is governed by the laws of the State of Nevada.  The Subscriber, in its personal or corporate capacity and, if applicable, on behalf of each beneficial purchaser for whom it is acting, irrevocably attorns to the jurisdiction of the courts of the State of Nevada.
 
 12.
 Survival
 
 12.1
 This Subscription Agreement, including without limitation the representations, warranties and covenants contained herein, shall survive and continue in full force and effect and be binding upon the parties hereto notwithstanding the completion of the purchase of the Shares by the Subscriber pursuant hereto.
 
 13.
 Assignment
 
 13.1
 This Subscription Agreement is not transferable or assignable.
 
 14.
 Severability
 
 14.1
 The invalidity or unenforceability of any particular provision of this Subscription Agreement shall not affect or limit the validity or enforceability of the remaining provisions of this Subscription Agreement.
 
 15.
 Entire Agreement
 
 15.1
 Except as expressly provided in this Subscription Agreement and in the agreements, instruments and other documents contemplated or provided for herein, this Subscription Agreement contains the entire agreement between the parties with respect to the sale of the Shares and there are no other terms, conditions, representations or warranties, whether expressed, implied, oral or written, by statute or common law, by the Company or by anyone else.
 
 16.
 Notices
 
 16.1
 All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted by any standard form of telecommunication.  Notices to the Subscriber shall be directed to the address on the signature page of this Subscription Agreement and notices to the Company shall be directed to the address on the cover page of this Subscription Agreement.
 
 17.
 Counterparts and Electronic Means
 
 17.1
 This Subscription Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall constitute an original and all of which together shall constitute one instrument.  Delivery of an executed copy of this Subscription Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Subscription Agreement as of the date hereinafter set forth.
 

 
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 IN WITNESS WHEREOF the Subscriber has duly executed this Subscription Agreement as of the date of acceptance by the Company.
 ___________________________
 (Name of Subscriber – Please type or print)
 _______________________ 
 (Signature and, if applicable, Office)
 _________________
 (Address of Subscriber)
 ________________________________
 (City, State or Province, Postal Code of Subscriber)
 _______________
 (Country of Subscriber)
 

 

 A C C E P T A N C E
 The above-mentioned Subscription Agreement in respect of the Shares is hereby accepted by Midwest Oil and Gas Inc. (f/k/a Americas Diamond Corp.)
 DATED at London, the 26th of August, 2014.
 
 Midwest Oil and Gas Inc.

Per:
  
  
  
  
 ____________________________
Authorized SignatoryPOWI-EX10.2_2014.3.31Q1A

Exhibit 10.2
AMENDMENT NUMBER ONE
TO
WAFER SUPPLY AGREEMENT

This Amendment Number One to Wafer Supply Agreement (the “Amendment”), effective as of January 1, 2014 (the “Amendment Effective Date”), amends the Wafer Supply Agreement effective October 1, 2010 (the “Agreement”) by and between:
		
	(1)
	Power Integrations International, Ltd., a Cayman Islands corporation having its principal place of business at 4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box 32322, Grand Cayman  KY1-1209 (“POWER INTEGRATIONS”); and

		
	(2)
	X-FAB Semiconductor Foundries AG having its principal place of business at Haarbergstrasse 67, 99097 Erfurt, Germany (“COMPANY” or “SUPPLIER”).

RECITALS
WHEREAS, pursuant to the terms of the Agreement, Power Integrations grants to SUPPLIER licenses of certain of Power Integrations’ intellectual property for the sole purpose of Power Integrations acquiring from SUPPLIER the fabrication and supply of wafers of certain power IC products; and
WHEREAS, Power Integrations and COMPANY desire to amend certain terms of the Agreement; and
WHEREAS, in accordance with Section 18.10 of the Agreement, the Agreement may be amended only by an instrument in writing duly executed by an authorized representative of COMPANY and POWER INTEGRATIONS.
NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby amend the Agreement as follows:
AGREEMENT
		
	1.
	Unless otherwise provided herein, all capitalized terms as used in this Amendment shall have the same meanings as defined in the Agreement.

		
	2.
	A new Section 10.4 and Section 10.5 are added to the Agreement as follows: 

		
	10.4
	Subject to X-FAB [*] receipt of the prior written approval of PI for the specific SG Equipment to be purchased and final pricing, PI will pay X-FAB [*] the SG Equipment Cost on or before a date mutually agreed upon by the parties.  X-FAB [*] will pay PI back for the SG Equipment Cost in the form of [*] discounts per [*] after the [*] until X-FAB [*] delivers and PI accepts [*] WAFERS (the [*]) (i.e., [*] = the SG Equipment Cost).  The parties estimate the SG Equipment Cost will be roughly [*].  The [*] means [*].  

		
	10.5
	If this Agreement is terminated in accordance with Article 13 (“Term and Termination”) before X-FAB [*] delivers and PI accepts the [*], X-FAB [*] shall, at X-FAB [*] election, either immediately:

(1) pay PI the following amount: (a) The difference of (i) the [*] minus (ii) the number of  [*] WAFERS accepted by PI under this Agreement after the [*], times (b) [*].  For example, but without limitation, if PI has accepted [*] WAFERS between the [*] and the termination date, then X-FAB [*] shall pay PI [*]; or 
(2) transfer all right title and interest in the SG Equipment to PI and deliver the SG Equipment to a location specified by PI. 

	
			
	Confidential
	1
	Amendment #1

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

If this Agreement expires before X-FAB [*] delivers and PI accepts the [*], X-FAB [*] will have no obligation to pay PI any funds under this Section 10.5, provided the quantity of [*] WAFERS delivered by X-FAB [*] was not materially adversely affected by X-FAB [*] quality, production, or delivery problems.
3.    Section 13.1 of the Agreement is deleted in its entirety and replaced with the following:
		
	13.1.  
	This Agreement shall continue in full force and effect from the Effective Date until [*], unless earlier terminated as provided herein (“Term”).

		
	4.
	Section 18.16 of the Agreement is deleted in its entirety and replaced with the following:

		
	18.16.
	X-FAB [*] - [*] Wafers.  X-FAB [*] shall use its best efforts to qualify PI’s process and supply [*] inch [*] and [*] WAFERS from X-FAB [*] facility as soon as practicable after the Effective Date.  PI will pay X-FAB [*] a fee of [*] for X-FAB [*] research and development efforts to transfer and qualify [*] and [*] WAFERS processes at X-FAB [*].  Provided X-FAB [*] continues to use its best efforts to transfer and qualify such processes, PI will make such payment in accordance with the following schedule at the beginning of each year:  [*].   

		
	5.
	The following new Article 19 is added to the Agreement:

Article 19.    (SG Manufacturing Equipment)
		
	19.1
	X-FAB [*] will purchase and install at its own cost as soon as mutually agreed in [*] a [*] Tool, a [*] Measurement System, and an [*].  X-FAB [*] will also purchase and subject to the prior written approval of PI: (1) the following manufacturing equipment, which is, (a) a  [*] Tool specific to the [*], (b) a [*] Tool, (c) Specialized Test Equipment, (d) a [*] Tool, (e) a [*] Tool, and (f) a [*] Tool ((a) through (f) collectively the “SG Equipment”); (2) installation of the SG Equipment; and (3) fitting for the SG Equipment.  X-FAB [*] will be responsible for [*].  Subject to PI’s prior written approval of the specific SG Equipment manufacturers, model numbers, and purchase price (the “SG Equipment Cost”) and Sections 10.4 and 10.5, PI will reimburse X-FAB [*] for the SG Equipment Cost.   

		
	19.2
	X-FAB [*] will [*] the SG Equipment and, except as set forth above, will be responsible for full installation, connection to existing equipment, testing and qualification of the SG Equipment at X-FAB [*] facility.  Qualification will be in accordance with a qualification plan mutually agreed upon in writing between X-FAB [*] and PI.  Qualification shall not be complete until the date PI reasonably agrees in writing that the foregoing qualification plan has been met. 

		
	19.3
	X-FAB [*] shall keep the SG Equipment in operating condition and available for VOLUME PRODUCTION during the Term of this Agreement.  X-FAB [*] shall be responsible for the maintenance and operation of the SG Equipment as long as wafers are produced for PI at X‐FAB [*] facility.  X-FAB [*] will pay for all repairs of the SG Equipment.  Any repairs should be completed in reasonable time provided, however, that if a repair cannot be completed within ten (10) calendar days from discovery of the need for such repair, then X-FAB [*] shall give immediate written notice to PI describing (1) the problem preventing repair in such ten (10) day period, and (2) a firm schedule for completing the repair. 

		
	19.4
	X-FAB [*] shall not modify the SG Equipment without the prior written approval of PI.  For modifications initiated by X-FAB [*], X-FAB [*] will pay for any modifications of the SG Equipment.  PI shall determine whether the approved modification requires re-qualification of the SG Equipment.  X-FAB [*] agrees to re-qualify the SG Equipment if so determined in accordance with a mutually agreed-to, written qualification plan.  Such re-qualification will be at X-FAB [*] expense.  For SG Equipment modifications requested by PI, PI will pay for the cost of the modifications and re-qualification. 

		
	19.5
	Without PI’s prior written consent, X-FAB [*] shall not (a) move or relocate the SG Equipment, (b) lend or transfer it to any third party, or (c) encumber the SG Equipment with any lien or other security interest, except for the terms and conditions of any grant by the U.S. government.

	
			
	Confidential
	2
	Amendment #1

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		
	19.6
	The SG Equipment will be used for manufacturing WAFERS for PI, and for PI research and development activities.  The SG Equipment will not be used for the benefit of competitors of PI.  X-FAB [*] will obtain prior written consent of PI for the use of the [*] Tool for non-competitive third parties and such consent will not be unreasonably withheld.  Subject to the foregoing and Section 19.10, the operation of the [*] Tool for any other use, including the use of the [*] Tool for [*], is permitted as long as delivery and FOUNDRY CAPACITY commitments by X-FAB [*] to PI are met.

		
	19.7
	X-FAB [*] will maintain, at its sole cost and expense, the same types and amounts of insurance for the SG Equipment as X-FAB [*] maintains for its other similar equipment at X-FAB [*] facility.  A Certificate of Insurance indicating such coverage shall be delivered to PI upon request. The Certificate shall indicate that the policy will not be changed or terminated without at least thirty (30) days’ prior notice to PI, shall name PI as an additional named insured and shall also indicate that the insurer has waived its subrogation rights against PI.

		
	19.8
	X-FAB [*] hereby grants a security interest in the SG Equipment furnished hereunder and the proceeds therefrom, to secure full re-payment of the SG Equipment Cost to PI in accordance with this Agreement.  X-FAB [*] agrees to execute any financing statements or other documents PI requests to protect its security interest. 

		
	19.9
	The requirements of Sections 19.2 - 19.8 will expire upon [*] the date that [*] and [*] the [*] or upon the date that [*] the [*] set forth in Section 10.5. 

		
	19.10
	Prior to [*], X-FAB [*] shall not [*] or [*] from X-FAB [*] facility to any third party for [*] of the same active material system as the [*] for so long as X-FAB [*] is required under this Agreement to (a) [*] of PI’s [*] or (b) [*].  Subject to 19.6, X-FAB [*] will promptly [*] of the [*] of [*] prior to [*] for such [*] from X-FAB [*] facility.  X-FAB [*] may submit requests to PI from time to time for exceptions to the foregoing restriction and PI may grant or deny such requests in its sole and absolute discretion. Prior to [*], PI will not [*] a [*] with a [*] to [*] of the same active material system as the [*], provided X-FAB [*] at all times during such period satisfies [*], qualifies and supplies [*] in the timeline mutually agreed upon by the Parties, and satisfies the [*] for [*].   

		
	6.
	Exhibit B of the Agreement is hereby amended to include the additional language set forth in Exhibit B-1 attached hereto.

		
	7.
	Notwithstanding anything to the contrary in the WSA, the parties acknowledge and agree that with respect to all PI INTELLECTUAL PROPERTY related to PI’s [*], the scope of the license rights granted to SUPPLIER in Section 4 of the WSA are granted solely to X-FAB [*], and not to [*].

		
	8.
	Effective as of the Amendment Effective Date, all references in the Agreement to the “Agreement” or “this Agreement” shall mean the Agreement as amended by this Amendment.   Except as expressly amended herein, the terms of the Agreement continue unchanged and shall remain in full force and effect. This Amendment may be executed in one or more counterparts, each of which shall be considered an original, but all of which counterparts together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized representatives, effective as of the Amendment Effective Date.

	
		
	X-FAB Semiconductor Foundries AG
	Power Integrations International, Ltd.

	By:/s/ Lloyd Whetzel
	By:/s/ John L. Tomlin

	Name: Lloyd Whetzel
Title: CEO, X-FAB Texas
Date: 2/19/2014
	Name:John L. Tomlin
Title:President
Date:2/19/2014

	
			
	Confidential
	3
	Amendment #1

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Exhibit B-1

PRICES for X-FAB [*] [*] WAFERS
[*] WAFERS
Wafer Price through [*]    [*]/wafer
Pricing for [*] and forward will be negotiated annually with a mutual understanding that both parties will collaborate to [*]. Both parties understand that [*] and that X-FAB [*] and PI will work together to [*].
[*] WAFER
[*] WAFER pricing will be [*] upon completion of the qualification of the technology.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}]]