Document:

Exhibit 10.11

 

CERTAIN INFORMATION (INDICATED BY “[***]”) IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

Settlement Agreement and Amendment to
 Development And Supply Agreement

 

This Settlement Agreement and Amendment to the Development and Supply Agreement (“Amendment”) is made this 12th day of January 2010 (“Amendment Effective Date”) between Diablo Technologies, Inc., a Canadian corporation having a principal place of business at 290 St. Joseph, Suite 200, Gatineau, Quebec J8Y 3Y3 (“Diablo”) and Netlist, Inc., a Delaware corporation having a principal place of business at 51 Discovery, Irvine, CA 92618 (“Netlist”).

 

R E C I T A L S

 

Whereas, Netlist entered into a Development and Supply Agreement with Diablo to have certain products designed and manufactured by Diablo on September 10, 2008 (“Agreement”); and

 

Whereas, in the course of performing this Agreement, the parties have had disputes regarding the obligations and performance under this Agreement, including the breaches thereof;

 

WHEREAS, the parties have agreed to compromise, settle and resolve all past disputes, liabilities and obligations between them concerning or regarding the alleged breaches of the Agreement;

 

WHEREAS, the parties agree that the settlement and amendments embodied in this Agreement are made in good faith and shall not constitute an admission of liability or other admission against interest by any party hereto.

 

Now, therefore, in consideration of the promises and the mutual agreements hereinafter set forth, and intending to be legally bound, the parties hereto agree as follows:

 

A G R E E M E N T S

 

1.                                       Purchase and Payment Obligations.  Within five (5) business days of the Amendment Effective Date, Netlist shall:

 

(a)                                  Receive a certificate of conformance from Diablo stating [***] as per the [***] depicted in [***] between Diablo and Netlist.  Make a payment of US$[***] to Diablo as the NRE Payment milestone “[***]” agreed in Exhibit D;

 

(b)                                 Issue a purchase order to Diablo for [***] aligned with previously provided forecasts, which shall be accompanied by an [***];

 

(c)                                  Provide to Diablo a delivery schedule for all devices between now and September 2010;

 

 

(d)                                 Agree to provide Diablo a budget of $[***] US dollars for each Netlist Chipset qualification in each Netlist density configuration added to the plan of record.  Diablo shall use these funds solely to 1) purchase DIMMs from Netlist and 2) to purchase Netlist customer target systems for in-system validation of the Netlist Chipset.

 

(e)                                  Agree to jointly initiate a cost benefit analysis for development of a [***].  Should this analysis conclude a development is necessary, Netlist shall initiate said development.

 

(f)                                    Receive from Diablo the items requested below or a plan including a schedule to address the items requested below

 

1.                                       Return of all [***] as previously requested (Diablo may request to change the quantity to allow for [***])

2.                                       [***] for both RD and ID devices ([***]).  In addition, Netlist requests specific test results and engineering assessment for the following parameters:  [***]

3.                                       [***] for [***]

4.                                       Progress report on [***] and Reliability [***]

5.                                       Errata List of [***] for both RD and ID

6.                                       Review and finalize the Phase Definition and phase exit criteria ([***]) including [***] phase plan and schedule as well as Production readiness status

7.                                       Latest encrypted [***] for both RD and ID I/O

8.                                       On an ongoing basis Diablo will provide any and all available information and data which is essential for Netlist’s qualification efforts for Diablo Chipsets.

 

2.                                       Release and Covenant Not to Sue.

 

(i)                                     Diablo hereby fully releases and forever discharges Netlist, and its respective past, present and future officers, directors, representatives, employees, agents, principals, shareholders, attorneys, assigns, predecessors, successors, affiliates, and subsidiaries, from any and all claims, causes of action, debts, liabilities, rights to damages, collection, reimbursement, costs, expenses, attorneys’ fees, and rights to injunctive relief, known or unknown, relating to any alleged breach of this Agreement, by such party prior to the Amendment Effective Date, including but not limited to any allegation by Diablo that Netlist made improper use of any Diablo Confidential Information or any other technology encompassed within Diablo’s Intellectual Property Rights.

 

(ii)                                  Diablo further covenants and agrees that it will not assert any claim or take any action against Netlist or any customer or business partner of Netlist, or claim that Netlist is not entitled to ship products using chips procured from other suppliers, now or in the future, based on Netlist’s marketing or sale of products that utilize chips procured from companies other than Diablo, only with respect to the followings claims: 1) any claim that Netlist or any customer or business partner of Netlist is using any Confidential Information of Diablo, provided that Netlist and Netlist’s customers and business partners undertake reasonable precautions to maintain the confidentiality of Diablo’s Confidential Information; 2) any claim for patent infringement based on an invention arising as a consequence of work performed under this Agreement; or 3) that Netlist or its customers or business partners are otherwise using technology developed by Diablo as a consequence of worked performed under this Agreement.  Diablo hereby expressly waives and releases any rights it may have at law or in equity to take any legal action or other action as described in this paragraph against Netlist, its customers or its business partners.  The term “business partner” as used in this paragraph refers to third parties working with Netlist in connection with Netlist products, and such third parties are only entitled to the protections of this paragraph to the extent of their work with Netlist.

 

 

(iii)                               Diablo acknowledges that there is a risk that subsequent to the execution of this Amendment, it may discover, incur or suffer facts and/or claims which were unknown or unanticipated at the time this Amendment is executed.  Diablo acknowledges and agrees that by reason of the releases and covenants contained herein, it is assuming the risk of such unknown facts and/or claims and agrees that this Amendment applies thereto.  In connection therewith, Diablo expressly waives the benefits of Section 1542 of the California Civil Code, which section provides as follows, and any laws of similar affect applicable in any jurisdiction:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

(iv)                              Release and Covenant Not to Sue by Netlist

 

Netlist hereby fully releases, forever discharges and covenants not to sue Diablo and its respective past, present and future officers, directors, representatives, employees, agents, principals, shareholders, attorneys, assigns, predecessors, successors, affiliates, and subsidiaries, from any and all claims, causes of action, debts, liabilities, rights to damages, collection, reimbursement, costs, expenses, attorneys’ fees, and rights to injunctive relief, known or unknown, relating to any alleged breach of this Agreement by such party prior to the Amendment Effective Date.

 

(v)                                 The foregoing Releases and Covenants Not to Sue are not intended to and do not alter or affect the obligations of either Netlist or Diablo with respect to the Agreement or this Amendment, including but not limited to Diablo’s obligations to provide an escrow deposit or to indemnify Netlist pursuant to the terms of the Agreement.

 

A M E N D M E N T S

 

9.                                       Market Share Commitment.  The following Section 3(e) is hereby amended in its entirety to read as follows:

 

“3(e)                      Market Share Commitment.  Netlist shall allocate to Diablo the following percentages of Netlist Market Share for the Netlist Chipsets unless Netlist Product using Netlist Chipsets supplied by Diablo do not successfully complete required third party qualification.  Netlist shall not bias third party qualifications against Netlist Product using Diablo supplied Netlist Chipsets.

 

“Netlist Market Share”: shall mean the number of Netlist Chipsets shipped, invoiced or sold, as part of a qualified memory module using Diablo supplied Netlist Chipsets or separately as individual components, by Netlist to any third party.

 

The Market Share Commitment shall not be capped at the minimum percentages indicated below.  Netlist shall cooperate and disclose the status of and any feedback (whether positive or negative) to Diablo in connection with Netlists’s qualification with any customers of the Netlist Chipset.

 

Netlist agrees not to renegotiate the purchase price of the Products to achieve or maintain this percentage:

 

(i)            1st 6 Months of Netlist Production: [***]; Between 6th and 18th months of Netlist Production: [***]; After 18 month of Netlist Production: [***].

 

(ii)           In addition, all quantities of Netlist Chipsets set forth in any Purchase Order issued by Netlist to Diablo and confirmed by Diablo in accordance with this Agreement, but which Diablo is completely unable to fulfill, shall be deemed to have been allocated to Diablo.

 

(iii)          Audit.  Netlist will maintain complete and accurate records for not less than three (3) years after this Agreement expires or is terminated.  Diablo may audit Netlist’s records in accordance with this Section, twice per year, at its expense; provided that a nationally recognized accounting firm retained by Diablo (“Auditor”) will pursuant to a confidentiality agreement have access to such records solely for the purposes of confirming that Netlist has fulfilled its obligations under Section (i) above.

 

 

(iv)                              If qualification requirements change in the 12 months following signing this Amendment, Netlist will give Diablo notice as soon as possible to allow Diablo to propose a remedy.  During this period, if the product does not meet the customer requirements, Netlist shall make commercially reasonable efforts to maintain Diablo’s market share by increasing shipments to other customers.

 

9.1                                 Guaranteed Minimum Allocation

 

Notwithstanding section 3(e), Netlist shall allocate to Diablo a minimum of [***]% of the Netlist total annual consumption of [***] provided however such allocation shall be limited to a maximum of 100% of the Netlist Market Share.

 

10.                                 Production Incentive.

 

Netlist shall place a [***] pre-paid Purchase Order for [***] chipsets [***] at a [***] price of [***] when [***].

 

[***] is defined as Netlist [***] and (a) unless waived by Netlist, the [***] has [***] and (b) Netlist has received [***].

 

11.                                 Term.  Section 11(a) is hereby amended in its entirety to read as follows:

 

“(a)                            Term.  This Agreement shall become effective on the Effective Date of this Agreement and shall continue for a period of three (3) years (“Initial Term”).  This Agreement shall be extended automatically at the end of the initial term or subsequent terms for an additional one (1) year term, unless terminated in accordance with this Agreement or unless either party notifies the other party in writing of its intent not to renew at least ninety (90) days prior to the expiration of the Initial Term or subsequent term.”

 

16.                                 Section II (e) shall be amended to include:

 

The obligations of Diablo under Section 2 of this Amendment will survive, in accordance with the terms hereof, the term and termination of this Agreement, and will remain in full force and effect regardless of the cause of any termination and be binding on any successors or assigns.

 

G E N E R A L

 

17.                                 Except as set forth herein, all terms and conditions of the Agreement shall remain in full force and effect.  Unless otherwise defined in this Amendment, capitalized terms used in this Amendment shall have the same meaning as set forth in the Agreement.  This Amendment, together with the Agreement, constitute the entire agreement of the parties with respect to the subject matter hereof, and supersedes any other agreements, promises, representations or discussions, written or oral, concerning such subject matter.

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment effective as of the Amendment Effective Date.

 

	
Netlist, Inc.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Chun K. Hong
    	
 
    
	
Name:
    	
Chun   K. Hong
    	
 
    
	
Title:
    	
President,   CEO
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Diablo Technologies, Inc.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Richard Badalone
    	
 
    
	
Name:
    	
Richard   Badalone
    	
 
    
	
Title:
    	
President,   CEOExhibit 10.1

 

MOMENTA PHARMACEUTICALS, INC.

 

Restricted Stock Agreement

Granted Under 2004 Stock Incentive Plan, as amended

 

AGREEMENT made on the date of your restricted stock grant set forth in your notice of restricted stock grant, between Momenta Pharmaceuticals, Inc., a Delaware  corporation (the “Company”), and you, an employee of the Company (the “Participant”).

 

For valuable consideration, receipt of which is acknowledged, the parties hereto agree as follows:

 

1.             Issuance of Shares.

 

The Company hereby issues to the Participant, subject to the terms and conditions set forth in this Agreement and in the Company’s 2004 Stock Incentive Plan, as amended (the “Plan”), that number of shares (the “Shares”) of common stock, $0.0001 par value per share, of the Company (“Common Stock”) set forth in the Participant’s notice of restricted stock grant.  The Shares will be held in book entry by the Company’s transfer agent in the name of the Participant.  The Participant agrees that the Shares shall be subject to the forfeiture provisions set forth in Section 2 of this Agreement and the restrictions on transfer set forth in Section 3 of this Agreement.

 

2.             Vesting.

 

(a)           The Shares shall vest and become free from forfeiture under Section 2(b) hereof and become free from the transfer restriction in Section 3 hereof as follows:  fifty percent (50%) of the Shares shall vest and become free from forfeiture under Section 2(b) hereof and become free from the transfer restrictions in Section 3 hereof on the date that the Company (or any of the Company’s partners or collaborators) receives marketing approval from the Food and Drug Administration for M356 in the United States, provided, that approval occurs on or before March 28, 2015; and the remaining fifty percent (50%) of the Shares shall vest on the first anniversary of such initial vest date; provided, however that upon a Program Transfer (as defined on Appendix A) all of the Shares that are unvested as of such event shall vest and become free from forfeiture under Section 2(b) hereof and shall become free from the transfer restrictions in Section 3 hereof.

 

(b) Unless otherwise provided in this Agreement or the Plan, in the event that Participant ceases to be employed by the Company on or before the Shares fully vest, for any reason or no reason, with or without cause, all of the unvested Shares will be immediately and automatically forfeited and returned to the Company for no consideration effective as of the date of termination of employment.  The Participant will have no further rights with respect to any Shares that are so forfeited.

 

(c)  For purposes of this Agreement, employment with the Company shall include employment with a parent or subsidiary of the Company, or any successor to the Company.

 

(d)  In the event that the Shares do not vest as set forth herein all of the unvested Shares will be immediately and automatically forfeited and returned to the Company for no consideration effective as of March 28, 2015.  The Participant will have no further rights with respect to any Shares that are so forfeited.

 

3.             Restrictions on Transfer.

 

(a)           The Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively “transfer”) any Shares, or any interest therein, until such Shares have vested, except that the Participant may transfer such Shares (i) to or for the benefit of any spouse, children, parents, uncles, aunts, siblings, grandchildren and any other relatives approved by the Board of Directors (collectively, “Approved Relatives”) or to a trust established solely for the benefit of the Participant and/or Approved Relatives, provided that such Shares shall remain subject to this Agreement (including without limitation the restrictions on transfer set forth in this Section 3 and the forfeiture provisions contained in Section 2) and such permitted transferee shall, as a condition to such transfer,

 

 

deliver to the Company a written instrument confirming that such transferee shall be bound by all of the terms and conditions of this Agreement or (ii) as part of the sale of all or substantially all of the shares of capital stock of the Company (including pursuant to a merger or consolidation), provided that, in accordance with the Plan and except as otherwise provided herein, the securities or other property received by the Participant in connection with such transaction shall remain subject to this Agreement.

 

(b)           The Company shall not be required (i) to transfer on its books any of the Shares which have been transferred in violation of any of the provisions set forth in this Agreement or (ii) to treat as owner of such Shares or to pay dividends to any transferee to whom such Shares have been transferred in violation of any of the provisions of this Agreement.

 

4.             Restrictive Legends.

 

All Shares subject to this Agreement subject to the following legend, in addition to any other legends that may be required under federal or state securities laws:

 

“The shares of stock represented by this certificate are subject to forfeiture provisions and restrictions on transfer set forth in a certain Restricted Stock Agreement between the corporation and the registered owner of these shares (or his or her predecessor in interest), and such Agreement is available for inspection without charge at the office of the Secretary of the corporation.”

 

5.             Provisions of the Plan.

 

This Agreement is subject to the provisions of the Plan, a copy of which is furnished to the Participant with this Agreement.  Capitalized terms used, but not otherwise defined, herein shall have the meaning given to them in the Plan.

 

6.             Withholding Taxes; Section 83(b) Election.

 

(a)           The Participant acknowledges and agrees that the Company has the right to deduct from payments of any kind otherwise due to the Participant any federal, state, local or other taxes of any kind required by law to be withheld with respect to the issuance of the Shares to the Participant or the lapse of the forfeiture provisions.  For so long as the Common Stock is registered under the Exchange Act, the Participant shall satisfy such tax obligations in whole by delivery of shares of Common Stock, including shares retained from this award, valued at their Fair Market Value; provided, however, that the total tax withholding where stock is being used to satisfy such tax obligations cannot exceed the Company’s minimum statutory withholding obligations (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income).  Shares surrendered to satisfy tax withholding requirements cannot be subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements.

 

(b)           The Participant has reviewed with the Participant’s own tax advisors the federal, state, local and other tax consequences of this investment and the transactions contemplated by this Agreement.  The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.  The Participant understands that the Participant (and not the Company) shall be responsible for the Participant’s own tax liability that may arise as a result of this investment and the transactions contemplated by this Agreement.

 

THE PARTICIPANT AGREES NOT TO FILE AN ELECTION UNDER SECTION 83(B) OF THE INTERNAL REVENUE CODE WITH RESPECT TO THE ISSUANCE OF THE SHARES.

 

2

 

7.             Miscellaneous.

 

(a)           No Rights to Employment.  The Participant acknowledges and agrees that the vesting of the Shares pursuant to Section 2 hereof is earned only by satisfaction of the performance conditions and continuing service as an employee at the will of the Company (not through the act of being hired or being granted the Shares hereunder).  The Participant further acknowledges and agrees that the transactions contemplated hereunder and the vesting schedule set forth herein do not constitute an express or implied promise of continued engagement as an employee for the vesting period, for any period, or at all.

 

(b)           Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

 

(c)           Waiver.  Any provision for the benefit of the Company contained in this Agreement may be waived, either generally or in any particular instance, by the Board of Directors of the Company.

 

(d)           Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the Company and the Participant and their respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 3 of this Agreement.

 

(e)           Notice.   Each notice relating to this Agreement shall be in writing and delivered in person or by first class mail, postage prepaid, to the address as hereinafter provided.  Each notice shall be deemed to have been given on the date it is received.  Each notice to the Company shall be addressed to it at its offices at 675 West Kendall Street, Cambridge, Massachusetts 02142 (Attention:  General Counsel).  Each notice to the Participant shall be addressed to the Participant at the Participant’s last known address.

 

(f)            Pronouns.  Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.

 

(g)           Entire Agreement.  This Agreement and the Plan constitute the entire agreement between the parties, and supersede all prior agreements and understandings, relating to the subject matter of this Agreement.

 

(h)           Amendment.  This Agreement may be amended or modified by the Board of Directors (or the Compensation Committee thereof), provided that the Participant’s consent to such action shall be required unless the Board of Directors (or the Compensation Committee, as applicable) determines that the action, taking into account any related action, would not materially and adversely affect the Participant.

 

(i)            Governing Law.  This Agreement shall be construed, interpreted and enforced in accordance with the internal laws of the State of Delaware without regard to any applicable conflicts of laws.

 

(j)            Interpretation.  The interpretation and construction of any terms or conditions of the Plan, or of this Agreement or other matters related to the Plan by the Compensation Committee of the Board of Directors of the Company shall be final and conclusive.

 

(k)           Participant’s Acknowledgments.  The Participant acknowledges that he or she: (i) has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of the Participant’s own choice or has voluntarily declined to seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of Wilmer Cutler Pickering Hale and Dorr LLP is acting as counsel to the Company in connection with the transactions contemplated by the Agreement, and is not acting as counsel for the Participant.

 

3

 

(l)            Delivery of Certificates.  The Participant may request that the Company deliver the Shares in certificated form with respect to any Shares that have ceased to be subject to forfeiture pursuant to Section 2.

 

(m)          No Deferral.  Notwithstanding anything herein to the contrary, neither the Company nor the Participant may defer the delivery of the Shares.

 

4

 

Appendix A

Definitions

 

For purposes of this Agreement, the following definitions shall apply:

 

“Program Transfer” means the closing of one or more transactions that effect the disposition by the Company to a third party of all of the Company’s tangible and intangible assets in or related to M356 prior to the initial vesting date set forth above.

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]