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Exhibit 10.58    
  

 
 

MODIFICATION TO
  LOAN AND SECURITY AGREEMENT    
  

        THIS MODIFICATION TO LOAN AND SECURITY AGREEMENT (the "Modification") is entered into as of June 5, 2002, by and between SILICON VALLEY BANK (the "Bank"),
a California-chartered bank whose address is 3003 Tasman Drive, Santa Clara, California 95054, and SPECTRIAN CORPORATION, a Delaware Corporation (the "Borrower"), whose address is 350 W. Java Drive,
Sunnyvale, California 94089 in reliance upon the following: 

RECITALS  

        A.    On
or about December 1, 1997, the Borrower and the Bank entered into that certain Loan and Security Agreement, which was subsequently superceded and restated in
full pursuant to an Amended and Restated Loan and Security Agreement dated August 9, 1999, and further modified by those certain Loan Modification Agreements dated May 28, 1999,
November 24, 1999, January 31, 2000, May 2, 2000, August 15, 2000, April 16, 2001, May 23, 2001, and September 28, 2001 (the Amended and Restated Loan
and Security Agreement and all Loan Modification Agreements collectively referred to herein as the "Loan Agreement"), pursuant to which the Bank made available to the Borrower a Committed Revolving
Line (the "Revolving Line") in the principal amount of up to Ten Million Dollars ($10,000,000). Each capitalized term used in this Modification shall have the meaning accorded to it in the Loan
Agreement unless it is otherwise defined herein. 

        B.    The
Borrower and the Bank hereby agree to amend the Loan Agreement further as follows, all subject to the terms and conditions of this Modification. 

AGREEMENT  

        NOW, THEREFORE, in reliance upon the foregoing and in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties hereto agree as follows: 

        1.    Modification of Certain Provisions.    

        1.1    Amendment of Section 2.1.2 of the Loan Agreement.    Section 2.1.2 of the Loan Agreement is
hereby amended and restated to read in full as follows: 

        2.1.2    Letters of Credit.    

        Bank
will issue or have issued Letters of Credit, and Import, Export, or Standby Letters of Credit, for Borrower's account in an aggregate face amount not to exceed the Committed
Revolving Line minus the sum of (i) the then-outstanding principal balance of the Advances, plus (ii) all amounts then outstanding under the Cash Management Services Sublimit plus
(iii) the Foreign Exchange Sublimit; provided, however, that the face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) may at no time exceed the
Committed Revolving Line. Each Letter of Credit will have an expiry date of not later than 180 days after the Revolving Maturity Date, but Borrower's reimbursement obligation will be secured by
cash on terms acceptable to Bank at any time after the Revolving Maturity Date if the term of this Agreement is not extended by Bank. Borrower agrees to execute any further documentation in connection
with the Letters of Credit as Bank may reasonably request. 

        1.2    Amendment of Section 2.1.3 of the Loan Agreement.    Section 2.1.3 of the Loan Agreement is
hereby amended and restated to read in full as follows: 

        2.1.3    Foreign Exchange Sublimit.    

        To
the extent that the Foreign Exchange Sublimit (as calculated herein) is not exceeded, Borrower may enter into foreign exchange forward contracts with Bank under which Borrower 

 

commits to purchase from or sell to Bank a set amount of foreign currency more than one Business Day after the contract date (the "FX Forward Contract"). The Foreign Exchange Sublimit (the "Foreign
Exchange Sublimit") shall be an amount equal to 10% of the face amount of all outstanding FX Forward Contracts; provided, however, that at no time may the aggregate face amounts of all FX Forward
Contracts exceed ten times the amount of the Foreign Exchange Sublimit, and the Foreign Exchange Sublimit may never exceed the Committed Revolving Line minus the sum of (i) the then-
outstanding principal balance of the Advances, plus (ii) all amounts then outstanding under the Cash Management Services Sublimit plus (iii) the face amount of outstanding Letters of
Credit. The aggregate amount of the Foreign Exchange Sublimit shall at all times reduce, on a dollar-for-dollar basis, the amount otherwise available to be borrowed under the Committed Revolving Line.
Bank may terminate the FX Forward Contracts if an Event of Default occurs. 

        1.3    Addition of New Section 2.1.4 to the Loan Agreement.    Section 2.1.4 is hereby added to the Loan
Agreement to read in full as follows: 

        2.1.4    Cash Management Services Sublimit.    

        Borrower
may use up to $10,000,000 of the amounts available under Section 2.1.1(a) (the "Cash Management Services Sublimit") for Bank's Cash Management Services, which may include
merchant services, business credit card, automated clearing house transactions, and controlled disbursement accounts identified in various cash management services agreements related to such services
(the "Cash Management Services"). All amounts at any one time outstanding under the Cash Management Services Sublimit will reduce, on a dollar-for-dollar basis, the amount otherwise available to be
borrowed under the Committed Revolving Line. Any amounts Bank pays on behalf of Borrower, and any amounts that are not promptly repaid by Borrower, for any Cash Management Services will be treated as
Advances under the Committed Revolving Line and will accrue interest at the rate for Advances. Borrower agrees to execute any further documentation in connection with the Cash Management Services as
Bank may request. 

        1.4    Amendment of Section 6.7(i) of the Loan Agreement.    Clause (i) of Section 6.7 of the Loan
Agreement is hereby amended and restated to read in full as follows: 

        (i)    Quick Ratio.    A ratio of Quick Assets plus marketable securities to Current
Liabilities of at least 2.50 to 1.00. 

        1.5    Amendment and Restatement of Section 6.7(iii) of the Loan Agreement.    Clause (iii) of
Section 6.7 of the Loan Agreement is hereby deleted in its entirety and replaced with the following new clause (iii): 

        (iii)    Minimum Balance Sheet Cash.    Borrower shall at all times maintain at least Sixty
Five Million Dollars ($65,000,000) in cash and marketable securities on its balance sheet, determined in accordance with GAAP. 

        1.6    Amendment of Section 7.3 of the Loan Agreement.    Loan Agreement Section 7.3 entitled "Mergers or
Acquisitions" (referenced incorrectly in that certain Loan Modification Agreement dated May 28, 1999 as Section 6.3) is hereby amended and restated to read in full as follows: 

        7.3    Mergers or Acquisitions.    

        Merge
or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any other business organization, or acquire, or permit any of its Subsidiaries to acquire,
all or substantially all of the capital stock or property of another Person, except for (i) such transactions that do not involve an amount that in the aggregate exceeds Seventy Five Million
Dollars ($75,000,000) through the Revolving Maturity Date; (ii) without the prior consent of the Bank 

2

 

(which consent may be granted or withheld in the Bank's sole discretion), an acquisition for more than Twenty Million Dollars ($20,000,000) in cash through the Revolving Maturity Date; or
(iii) being acquired by REMEC Corp and upon the consummation of such acquisition the Borrower is a wholly-owned subsidiary of REMEC Corp.; provided, however, that in each of the foregoing
situations an Event of Default has not occurred and is continuing or would exist after giving effect to such action. 

        1.7    Modification of Section 13.1 of the Loan Agreement.    The following defined term under
Section 13.1 is hereby amended to read in full as follows: 

        "Revolving
Maturity Date" is June 4, 2003. 

        2.    Reaffirmation of Obligation to Repay.    The Borrower acknowledges that the Loan Documents fully and accurately
reflects and constitutes the valid and enforceable obligations of the Borrower to the Bank, and the Borrower remains fully obligated to perform all covenants thereunder and has no defenses to or
offsets against such obligations. 

        3.    Conditions to Effectiveness.    The following conditions must be satisfied in full, or waived in writing by the
Bank, before this Modification shall be effective and the Bank shall become obligated hereunder. 

        3.1.    Execution and Delivery of Documents.    The Borrower shall have executed and delivered to the Bank this
Modification, and the Bank shall have received any and all other instruments and documents contemplated hereby or otherwise reasonably requested by the Bank, all in form and substance acceptable to
the Bank. 

        3.2    Representations and Warranties; No Default.    The representations and warranties of the Borrower as set forth
in the Loan Agreement shall be true and correct as of the date on which this Modification becomes effective, and no Event of Default shall have occurred and be continuing as of such date without cure. 

        3.3    Payment of Fees.    Borrower shall have paid a loan fee in an amount equal to Twenty-five Thousand Dollars
($25,000), plus all Bank Expenses incurred in entering into this Modification. 

        4.    Continued Full Force and Effect.    Except to the extent expressly amended hereby, all of the terms and
provisions of the Loan Agreement shall remain in full force and effect, and the lien in favor of the Bank in the Collateral shall be and remain a fully perfected senior lien upon all of the Collateral
pursuant to the terms of the Loan Agreement, it being the intent of the parties that nothing herein shall affect or impair the Bank's rights or remedies under the Loan Agreement or its lien upon the
Collateral. Henceforth, the term "Loan Agreement" shall be deemed to mean the Loan Agreement as modified and supplemented by the terms of this Modification, and any default of the Borrower hereunder
shall constitute an Event of Default under the Loan Agreement. 

        5.    General Provisions.    

        5.1    Choice of Law and Venue.    This Modification shall be governed by and construed in accordance with the
internal laws of the State of California, without regard to principles of conflicts of law, and any action or proceeding arising out of this Modification shall be commenced in the Superior Court of
the State of California for the County of Santa Clara, or in the District Court of the United States in the Northern District of California. 

        5.2    WAIVER OF JURY TRIAL.    EACH OF THE BORROWER, ON THE ONE HAND,
AND THE BANK, ON THE OTHER HAND, WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS MODIFICATION, THE LOAN AGREEMENT OR ANY CONTEMPLATED TRANSACTION,  

3

 

 INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH OF THE PARTIES TO ENTER INTO THIS MODIFICATION. EACH PARTY HAS REVIEWED THIS WAIVER WITH
ITS COUNSEL AND UNDERSTANDS THE RAMIFICATIONS THEREOF.

        5.3    Entire Agreement.    This Modification and the Loan Agreement, together with all of the instruments and
documents delivered in connection herewith and therewith, constitute the entire agreement and understanding between the parties hereto with respect to the transactions contemplated hereunder and
thereunder and supersede all prior negotiations, understandings and agreements between the parties with respect to such transactions. 

        5.4    Counterparts.    This Modification may be executed and delivered in any number of counterparts, each of which
shall be an original and all of which together shall constitute one and the same agreement. 

[Remainder
of Page Left Intentionally Blank] 

4

 

        5.5    Time of the Essence.    Time is of the essence in the performance by each party of its obligations hereunder
and the satisfaction of all conditions specified herein. 

        IN
WITNESS WHEREOF, each of the parties hereto ahs caused its duly authorized representative to execute this Modification as of the date first set forth above. 

	BORROWER:	 	BANK:
	

SPECTRIAN CORPORATION,

a Delaware corporation	
 	

SILICON VALLEY BANK,

a California-chartered bank
	

By:	

/s/  MICHAEL D. ANGEL      
	
 	

By:	

/s/  BRADFORD H. LEAHY      

	

Name:	

Michael D. Angel
	
 	

Name:	

Bradford H. Leahy

	

Title:	
Chief Financial Officer
	
 	

Title:	
Vice President

5

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Exhibit 10.58

MODIFICATION TO LOAN AND SECURITY AGREEMENTQuickLinks
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EXHIBIT 10.101    
  

Certain portions of this exhibit have been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted
portions.

[SOUTHWALL
TECHNOLOGIES LOGO] 

SUPPLY
AGREEMENT

BETWEEN

SOUTHWALL TECHNOLOGIES INC.

1029 Corporation Way

Palo Alto, California 94

303 USA

SAINT GOBAIN SEKURIT FRANCE

Bureau Central

B.P.15, Rue Joffre

F-60150 THOUROTTE, France 

	1. Agreement.	 	It is agreed that Saint Gobain Sekurit ("SGSF") commits to place a firm, two (2) year, irrevocable purchase order for Heat Mirror ® XIR® 70 and 75 film ("Film") as detailed in Section 6, below. Additionally, it is
agreed that Southwall Technologies Inc. ("Southwall") commits to supply the volume of Film, including the Optional amounts, as detailed in Section 6 below. The purchase of Film under this Agreement is for the needs of SGSF and Saint Gobain Sekurit
("SGS") worldwide. This Agreement to sell Film is for vehicular application (not architectural applications) only, and SGSF agrees that such films will be used for no other purpose. Film purchased under this Agreement will be incorporated by SGSF (or
an SGSF subsidiary), into vehicular glass and will otherwise not be resold to third parties who are not subsidiaries of SGSF. This agreement supercedes the previous Agreement signed May 27, 1999 by and between Southwall and SGSF.
	
2. Term of the Supply Agreement.	
 	

The term of the Supply Agreement shall be for a period of two (2) years, from January 1, 2002 to December 31, 2003, and may be renewed, if at all, only on such terms and conditions as the parties may then agree for each subsequent
year.
	
3. Best Customer/ Supplier.	
 	

Based on committed purchase volumes from SGSF, Southwall confirms SGSF has received best pricing terms for XIR® Film and enjoys "best customer" status during the term of this Agreement. SGSF agrees to give Southwall "best supplier" status by
approaching Southwall first for the quotation and supply of additional Film (beyond the volumes described in this Agreement).
	
4. Volume of Film Purchases.	
 	

By means of an irrevocable two (2) year purchase order, SGSF commits to three million five hundred thousand (3,500,000) square meters (37.66 million square feet) of Film intended for delivery in the period January 1, 2002 to December 31, 2003 (with a
plus/minus tolerance of five percent [5%] in any one year). Such commitment is contingent upon full web (1.83 meters or 2.00 meters) purchase.
	
 	
 	

 

1

 

	
5. Film

Price/Terms/Warranties and

Liabilities.	
 	

Refer to the attached Price Schedule and Terms, Warranties, and Liabilities attached in Appendix A.
	
6. Orders/Forecasts.	
 	

[***]

* A plus/minus tolerance of five percent (5%) is acceptable only on the Minimum Quantities, in any one (1) year.
	

 	
 	

In the first week of the month next following the date of this Agreement, SGSF will supply Southwall with an expected take-down schedule of Film type and volumes for each film type by month for the full year 2002, (to be attached as Exhibit 1) which
shall not, without written agreement of the parties, be less than the amounts shown above. By November 1, 2002 SGSF will supply a similar takedown schedule for 2003 and will exercise or cancel its option for an additional fixed 500,000 m2 for 2003.
Southwall shall then be committed to supply and sell such volume and type of Film when so ordered by SGSF as part of its two (2) year purchase order. SGSF acknowledges the commercial necessity to advise Southwall of the initial takedown schedule and
significant forecast demand increases or decreases, and/or significant changes in the product mix at the earliest opportunity and in no event less than three (3) months prior to the required delivery date, and confirms that it will spread out
take-down volumes as evenly as possible over each year to avoid capacity problems for Southwall. In turn, Southwall needs to confirm any changes of the initial takedown schedule and acknowledges the commercial necessity for SGSF to receive even
volumes and confirms it will ship takedown volumes over each month to avoid production problems for SGSF.
	

 	
 	

Southwall agrees to establish a "2-week demand" safety stock of Film, as defined and agreed-upon between the Parties, to reduce the risk of supply interruption to SGSF. Southwall will maintain this safety stock with current material of acceptable
quality at this minimum level throughout the term of this Agreement. This material will be held at Southwall's plants in Grossrohrsdorf, Germany and Palo Alto, California and Tempe, Arizona in the form of sputtered polyester Film (i.e.
non-encapsulated). The amount of Film in each of these sites will be determined based on the quarterly scheduled demand from SGSF and will be apportioned based on the type of Film and the scheduled location of manufacture by Southwall operations.
Additionally, Southwall agrees to pay for any extraordinary shipping costs that may be incurred by having to supply Film to SGSF from this stock due to late delivery. This safety stock will be maintained with Film that is no older than 3 months by
ensuring that there is a quarterly turnover of this material. The initial 2-week safety stock will be established no later than March 31, 2002.
	

 	
 	

When at the end of one month during the term of this Agreement, with the exception of the first quarter of 2002 (January 1, 2002 through March 1, 2002), more than one week of delay occurs with any type or width of Film, SGSF will apply penalties to
Southwall for late delivery. These penalties are structured as follows:

2

 

	 	 	1.	 	End of a month with undelivered quantities per SGSF Purchase Order as received and accepted by Southwall—no penalties.
	 	 	2.	 	Southwall has 1 week to have undelivered quantities resolved per Payment Terms (Appendix A) for shipments from the U.S. and/or from SEG.
	 	 	3.	 	At end of week two any remaining undelivered quantities from the prior month have a 3% penalty applied to SGSF's account in the form of a customer credit.
	 	 	4.	 	At end of week three any remaining undelivered quantities from the prior month have a 4% penalty applied to SGSF's account in the form of a customer credit.
	 	 	5.	 	At end of week four any remaining undelivered quantities from the prior month have a 5% penalty applied to SGSF's account in the form of a customer credit.
	 	 	6.	 	The cumulative total late penalty for late shipments from the prior month will be 15%.

	7. Product Specifications.	 	The Film to be supplied under this Agreement shall correspond to the last valid Specifications agreed and signed by both parties, or as may be amended from time to time by agreement of the Parties in writing so as
thereafter to be in effect.
	
8. Assignablilty.	
 	

This Agreement or any part hereof may not be assigned by either Party without the prior consent of the other party; provided, however, that either party may assign this Agreement to any entity which acquires substantially all of its assets or
business, provided that the assignor remains obligated hereunder.
	
9. Term and Termination.	
 	

The term of this Agreement shall be for two (2) years, renewable thereafter upon mutual consent. Either Party may terminate this Agreement for a material breach by the other party which fails to be cured within ninety (90) days (thirty (30) days for
failure to pay) of notice thereof. The rights of termination hereunder are absolute. Neither party shall incur any liability or compensation obligation whatsoever for any damage (including, without limitation, damage or loss of goodwill or
investment) loss or expenses of any kind, suffered or incurred by the other (or any compensation to the other) arising from, or incident to, any termination of this Agreement by such party that complies with the terms of the Agreement, whether such
party is aware of any such damage, loss or expense.
	
10. Force Majeure.	
 	

Not withstanding anything else to the contrary, if the performance of this Agreement is prevented, restricted or interfered with by reason of any cause or circumstance whatsoever beyond the reasonable control of the parties hereto, the party so
affected, upon giving notice to the other, shall be excused hereunder to the extent of such prevention, restriction or interference, provided that the party so affected shall continue performance hereunder insofar as applicable whenever such causes
or circumstances are removed. Matters beyond reasonable control of the parties shall include:

3

 

	 	 	1.	 	Fire, explosion, strike, lock-out, labor dispute, casualty or accident, lack or failure in all transportation facilities, epidemic, cyclone, flood, drought, lack or failure in all sources supply of labor, raw materials,
power or supplies; or,
	 	 	2.	 	War, revolution, civil commotions, acts of public enemies, blockade or embargo; or,
	 	 	3.	 	Any law, order, proclamation, regulation, ordinance, demand or requirement of any government or any sub-division, authority or representative of any such government; or,
	 	 	4.	 	Any other acts whatsoever, whether similar or dissimilar to those enumerated, beyond the reasonable control of the parties hereto, but does not include lack of demand (except when lack of demand is due to a Force Majeure
event, as described herein).

	11. Product Development.	 	Southwall and SGSF commit to cooperate on mutual product and process development efforts, including: better solar properties, heatability, antenna, greater degrees of cross-curvature, and new products. SGSF agrees to
consider all of SGS's worldwide, new product needs in these joint activities.
	
12. Confidentiality.	
 	

Each party (the "Receiving Party") agrees that all inventions, know-how and ideas it obtains from the other party (the "Disclosing Party") and all other business, technical and financial information it obtains from such party are the confidential
property of the Disclosing Party ("Proprietary Information"). Except as unambiguously allowed in other parts of this Agreement, the Receiving Party will hold in confidence and not use or disclose any Proprietary Information and will similarly bind
its employees in writing. The Receiving Party's nondisclosure obligation will not apply to information it can document: (i) was already known to the Receiving Party without restriction prior to execution of the Agreement: (ii) is publicly available
through no fault of the Receiving Party; or (iii) is required to be disclosed pursuant to a regulation or court order (but only to a minimum extent required to comply with such regulation of order). The Receiving Party understands that any breach of
this Section 12 will result in irreparable injury to the Disclosing Party and that the Disclosing Party shall be entitled to equitable relief, including injunction and specific performance, as a remedy for any such breach by the Receiving Party. Such
remedies shall not be deemed to be the exclusive remedy for such breach, but shall be in addition, to all other available remedies at law or equity.
	
 	
 	

 

4

 

	
13. General Terms.	
 	

Any waivers or amendments shall be effective only if made in writing and signed by a representative or agent of the respective parties authorized to bind the parties. However, this Agreement shall be controlling over additional or different terms of
any purchase order, confirmation, invoice or similar document, even if accepted in writing by both parties, and waivers and amendments will be effective only if made by non-preprinted agreements clearly understood by both parties to be an amendment
or waiver. Any notice, report, approval or consent required or permitted hereunder shall be in writing, and will be deemed to have been duly given if delivered personally or mailed by first-class, registered or certified U.S. mail, postage prepaid to
a party at its address as set forth herein. Any communication between the parties shall be in English. Any dispute arising out of or relating to this Agreement shall be resolved in accordance with the International Rules of Arbitration of the
American Arbitration Association. The site of the Arbitration shall be in the United Kingdom. In addition to any award of damages, the prevailing party in any such arbitration shall be entitled to an award of its attorneys' fees and expenses incurred
in connection with the dispute. In any action or proceeding to enforce rights under this Agreement, the prevailing party will be entitled to recover costs and attorney's fees. If any provisions of this Agreement is held to be illegal or unenforceable,
 that provision shall be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect and enforceable. The parties agree that this Agreement is the complete and exclusive statement of the
mutual understanding of the parties, and supersedes and cancels all previous written and oral agreements and communications, with respect to the subject matter of this Agreement. Each party warrants and represents that this Agreement has been duly
authorized by all necessary corporate action and that this Agreement has been duly executed by and constitutes a valid and binding Agreement of that party.

Accepted
and Agreed to: 

	 	 	/s/ Thomas G. Hood
 Thomas G. Hood

President & CEO

Southwall Technologies Inc.

Palo Alto, CA

U.S.A.	 	/s/ Javier Fernandez
 Javier Fernandez

Purchasing Director

Saint Gobain Sekurit International

Paris, France
	

 	
 	

Date: December 18, 2001          	
 	

Date: December 19, 2001          

5

 
APPENDIX A  

PRICE SHEET, TERMS, WARRANTIES, and LIABILITIES

SAINT GOBAIN SEKURIT®  

PRICE SCHEDULE: XIR® Film (Effective January 1, 2002)  

	XIR® FILM

TYPE
	 	2002

Minimum

Quantity

[***]
	 	2002

Optional

Additional

Quantity

[***]
	 	2003

Minimum

Quantity

[***]
	 	2003

Optional

Additional

Quantity

[***]

	

[***]

	*
	A
plus/minus tolerance of 5% is acceptable.

	1.
	All
prices are per square meter.

	2.
	STI
pricing is based on FOB Palo Alto, CA or Tempe, AZ.

	3.
	SEG
pricing is based on DDP Chantereine, France (for 1 delivery per week, after which terms are FOB Grossrohsdorf, Germany for additional shipments and/or shipments to Crown for
encapsulation).

	4.
	Buyer
will pay all applicable non-US taxes and duties upon or measured by the sale of XIR® Film, regardless of how or by whom levied for products shipped from the U.S.A.

	5.
	Shipments
from STI are [***] days net from date of invoice, priced in $/m2.

	6.
	Shipments
from SEG are [***] days net from date of invoice, priced in EURO/m2.

	7.
	Southwall
commits to ship a minimum of [***] m2 out of SEG in 2002 and a minimum of [***] of SGSF needs out of SEG in 2003. 

	Shipment Lead Times	 	All changes to product mix for XIR® firm are subject to a three (3) month lead-time after receipt of request for change and need to be confirmed by Southwall. Lead times are subject to change upon six (6) months
notice.
	
Payment Terms	
 	

Payment terms are open account, net [***] days from date of invoice for SEG shipments, and net [***] days from date of invoice for STI shipments.
	

 	
 	

1. For STI shipments: FOB Palo Alto, CA and Tempe, AZ
	

 	
 	

2. For SEG shipments: DDP Chantereine, France for 1 weekly shipment, and FOB Grossrohrsdorf, Germany for additional shipments and/or shipments to Crown for encapsulation
	
 	
 	

 

6

 

	

 	
 	

Buyer shall pay all applicable non-U.S. taxes and duties upon or measured by the sale of XIR® film, regardless of how or by whom levied for products shipped from the U.S.A. Buyer shall pay Southwall interest on the outstanding balance on all
overdue accounts until paid in full at the rate of U.S. Prime Rate plus three (3%) percent. Credit will be given for splices at a rate of 7 m2/splice
	
Governing Law and Legal Actions	
 	

Any dispute arising out of or relating to this Agreement shall be resolved in accordance with the International Rules of Arbitration of the American Arbitration Association. The site of the Arbitration shall be in the U.K. In addition to any award of
damages, the prevailing party in any such arbitration shall be entitled to an award of it attorneys' fees and expenses incurred in connection with the dispute.
	
Warranties	
 	

Southwall warrants to SGSF that the Film, when shipped to SGSF by Southwall, will conform in all material respects to the Specifications in effect. Such warranty does not apply to Film that (other than by Southwall) has been mishandled, mistreated,
or used or maintained or stored other than in conformity with Southwall's instructions.
	
Warranty Disclaimer	
 	

EXCEPT AS EXPRESSLY PROVIDED IN THE WARRANTIES SECTION ABOVE, SOUTHWALL MAKES NO WARRANTIES TO ANY PERSON WITH RESPECT TO THE FILM AND DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANT ABILITY, FITNESS FOR
PARTICULAR PURPOSE AND NON-INFRINGEMENT.
	
Limited Liability	
 	
NOT WITHSTANDING ANYTHING ELSE IN THIS AGREEMENT OR OTHERWISE, NEITHER PARTY SHALL BE LIABLE UNDER ANY SUBJECT MATTER OF THIS AGREEMENT OR UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR
EQUITABLE THEORY (A) FOR ANY AMOUNTS IN EXCESS IN THE AGGREGATE OF THE AMOUNTS PAID TO SOUTHWALL HEREUNDER DURING THE TWELVE MONTH PERIOD PRIOR TO THE DATE THE CAUSE OF ACTION AROSE OR (B) FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING,
WITHOUT LIMITATION, DAMAGE TO OR LOSS OF GOODWILL OR INVESTMENT), OR (C) FOR COST OF PROCUREMENT OF SUBSTITUTE GOODS. THIS SECTION DOES NOT LIMIT LIABILITY FOR THE BODILY INJURY OF A PERSON.

7

 
EXHIBIT 1

TAKE-DOWN SCHEDULE

FOR 2002  

[***]

	[***]	 	Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

8

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EXHIBIT 10.101

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