Document:

Exhibit 10.2

 

Conformed Copy

 

TRANSITION AGREEMENT

 

This Transition Agreement (this “Agreement”) is entered into as of December 3, 2012 (the “Effective Date”) between Lam Research Corporation, a Delaware corporation (“Lam”) and Axcelis Technologies, Inc., a Delaware corporation (“Company”).

 

 

1.                                    DEFINITIONS.  As used in this Agreement:

 

“Advanced Products” means the products described in Exhibit A.

 

“Affiliate” means, with respect to a party, any person or entity that controls, is controlled by, or is under common control with such party, where “control” means ownership of fifty percent (50%) or more of the outstanding voting securities (but only as long as such person or entity meets these requirements).

 

“Change of Control” means, with respect to a party, the occurrence of any of the following events: (a) any consolidation or merger of such party with or into any other entity in which the holders of such party’s outstanding shares immediately before such consolidation or merger do not, immediately after such consolidation or merger, retain stock representing a majority of the voting power of the surviving entity or stock representing a majority of the voting power of an entity that wholly owns, directly or indirectly, the surviving entity; (b) the sale, transfer or assignment of securities of such party representing a majority of the voting power of all of such party’s outstanding voting securities to an acquiring party or group; or (c) the sale of all or substantially all of such party’s assets.

 

“Company Customer” means any Person who has purchased or purchases a Licensed Product from Company or any Affiliate of Company, whether prior to or after the Effective Date.

 

“Existing Configurations” means configurations of the Advanced Products that Company has sold to and installed for Existing Customers prior to the Effective Date.

 

“Existing Customers” means the persons or entities to whom Company has sold Licensed Products prior to the Effective Date.

 

“Ion Implant Applications” means any process for selectively implanting ions into defined areas of silicon or other substrates in order to create areas with different levels of conductivity or other material modifications (other than the removal of material) that enable the formation of integrated circuits.

 

“Intellectual Property”  means all algorithms, application programming interfaces, apparatus, chemical compositions and structures, circuit designs and assemblies, concepts, data, databases and data collections, designs, diagrams, documentation, drawings, flow charts, formulae, gate arrays, ideas and inventions (whether or not patentable or reduced to practice), IP cores, know-how, materials, marketing and development plans, marks (including brand names, product names, logos, and slogans), methods, models, net lists, network configurations and architectures, photomasks, procedures, processes, protocols, schematics, semiconductor devices, software code (in any form including source code and executable or object code), specifications, subroutines, techniques, test vectors, tools, uniform resource identifiers including uniform resource locators (URLs), user interfaces, web sites, works of authorship, and other forms of technology.

 

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“Intellectual Property Rights” means any and all now known or hereafter existing (a) rights associated with works of authorship throughout the universe, including exclusive exploitation rights, copyrights, moral rights, and mask works; (b) trademark and trade name rights; (c) trade secret rights; (d) patents, designs, algorithms, and other industrial property rights; (e) other proprietary rights in Intellectual Property of every kind and nature throughout the universe, whether arising by operation of law, by contract or license, or otherwise; and (f) all registrations, applications, renewals, extensions, combinations, divisions, or reissues of the foregoing.

 

“Lab System” means the “Lab System” acquired by Lam from Company pursuant to the Asset Purchase Agreement dated November [*], 2012 between Lam and Company, as such term is defined therein.

 

“Legacy Products” means the products described in Exhibit B.

 

“Licensed Marks” means the trademarks and trade names listed in Exhibit C (as such list may be updated from time to time by Lam upon notice to Company).

 

“Licensed Products” means the Advanced Products and the Legacy Products.

 

“Licensed Technology” means the “Intellectual Property Rights” acquired by Lam from Company pursuant to the Asset Purchase Agreement dated November [*], 2012 between Lam and Company, as such term is defined therein, together with any and all Company Inventions assigned or licensed to Lam pursuant to Section 2.2(a) of this Agreement.

 

“Order Deadline” means the date that is 180 days following the Effective Date.

 

“Person” means any individual, partnership, firm, corporation, association, trust, unincorporated organization, joint venture, limited liability company, governmental authority or other entity.

 

“Prohibited Upgrade” means any part, component, sub-system, sub-assembly, or combination or series of parts, components, sub-systems or sub-assemblies of a Licensed Product that replaces an existing part, component, sub-system, sub-assembly, or combination or series of parts, components, sub-systems or sub-assemblies of an existing Licensed Product and, either individually or collectively, (i) increases the actual or potential productivity of such existing Licensed Product by 10% or more relative to the same Licensed Product prior to such replacement, (ii) has a standard list price of $50,000 or greater, (iii) upgrades an existing Licensed Product for advanced technology optimized for 90nm or below, or (iv) upgrades an existing Licensed Product to enhance capabilities for low material loss strip or clean.

 

“Support Period” means the period beginning on the Effective Date and ending on the third anniversary of the Effective Date.

 

“Transition Period” means the period beginning on the Effective Date and ending on the date that is nine months following the Effective Date.

 

2.                                   INTELLECTUAL PROPERTY

 

2.1 Licenses.  Subject to the terms and conditions of this Agreement, Lam grants to Company a non-exclusive, non-transferable (except as provided in Section 10.2), irrevocable (except as provided in Section 2.3 and Section 9.3(a)), royalty-free, worldwide license (without the right to grant sublicenses except to contract manufacturers, subject to Lam’s prior written consent, which shall not be unreasonably withheld) under the Licensed Technology:

 

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(a)        during the Transition Period, to make, sell, offer for sale, and distribute Advanced Products, solely for the sale of Existing Configurations of such Advanced Products to Existing Customers who have placed non-cancellable purchase orders for such Advanced Products not later than the Order Deadline;

 

(b)       during the Support Period, to make, sell, offer for sale, and distribute Legacy Products;

 

(c)        to make, sell, offer for sale, and distribute spare and replacement parts and components for Licensed Products solely to the extent needed to enable Company to provide support and maintenance services with respect to Licensed Products owned by Company Customers in accordance with Section 3.1 hereof, which license shall be perpetual (for the duration of the Intellectual Property Rights in such Licensed Technology); provided, however, that in no event may Company make, sell, offer for sale, or distribute Prohibited Upgrades pursuant to this Section 2.1(c); and

 

(d)       to make, sell, offer for sale, and distribute semiconductor manufacturing equipment solely for Ion Implant Applications or equipment for photo-resist “curing” or photostabilization applications, or to make, sell, offer for sale and distribute equipment or processes solely for mask and reticle cleaning, which license shall be perpetual (for the duration of the Intellectual Property Rights in such Licensed Technology).

 

2.2 Ownership of Intellectual Property Rights.

 

(a)        All worldwide Intellectual Property Rights in the Licensed Technology and Licensed Products are the exclusive property of Lam and its suppliers.  All rights in and to the Licensed Technology not expressly granted to Company in this Agreement are reserved by Lam and its suppliers.    In the event, during the Support Period, that Company makes any improvements, developments and/or modifications to the Licensed Technology or Licensed Products or otherwise conceives, creates, develops, or reduces to practice any Intellectual Property, in any stage of development, in connection with performing its obligations under this Agreement or otherwise covering, related to, necessary for or used in making, using or selling, the Licensed Products or any part thereof, or otherwise related to, necessary for or used in the conduct of the business of developing and providing manufacturing equipment designed to perform dry strip or clean processes on a silicon wafer or substrate (each, a “Company Invention”), Company agrees that: (i) Company shall promptly notify Lam in writing of any such Company Invention; (ii) such Company Invention shall the sole and exclusive property of Lam; and (iii) Company hereby irrevocably and unconditionally assigns to Lam all right, title, and interest worldwide in and to such Company Invention and all Intellectual Property Rights thereto. If any Intellectual Property Rights in a Company Invention cannot (as a matter of law) be assigned by Company to Lam as provided in the preceding sentence, then (a) Company unconditionally and irrevocably waives the enforcement of such rights and all claims and causes of action of any kind against Lam with respect to such rights, and (b) Company unconditionally grants to Lam an exclusive, perpetual, irrevocable, worldwide, fully-paid license, with the right to sublicense through multiple levels of sublicensees, under any and all such rights (i) to reproduce, create derivative works of, distribute, publicly perform, publicly display, digitally transmit, and otherwise use the Company Invention in any medium or format, whether now

 

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known or hereafter discovered, (ii) to use, make, have made, sell, offer to sell, import, and otherwise exploit any product or service based on, embodying, incorporating, or derived from the Company Invention, and (iii) to exercise any and all other present or future rights in the Company Invention.  Company will, at Lam’s request, (a) cooperate with and assist Lam, both during and after the term of this Agreement, in perfecting, maintaining, protecting, and enforcing Lam’s rights in the Company Inventions, and (b) execute and deliver to Lam any documents deemed necessary or appropriate by Lam in its discretion to perfect, maintain, protect, or enforce Lam’s rights in the Company Inventions or otherwise carry out the purpose of this Agreement.  Without limiting the generality of the foregoing, Company will execute and deliver to Lam, at Lam’s request, a patent application assignment for any Company Invention for which Lam elects to file a patent application.  At Lam’s request, Company will promptly record such assignment with the United States Patent and Trademark Office.  Company hereby irrevocably designates and appoints Lam and its duly authorized officers and agents as Company’s agent and attorney-in-fact to act for and in Company’s behalf to execute, deliver and file any and all documents with the same legal force and effect as if executed by Company, if Lam is unable for any reason to secure Company’s signature on any document needed in connection with the actions described in this section.  Company acknowledges that this appointment is coupled with an interest.

 

(b)       Intellectual Property developed, acquired, or otherwise obtained by Company that is not included in the Licensed Technology (other than the commercially available licenses from Cimetrix Incorporated) which is either owned or licensed by the Company on the date hereof or licensed or obtained by Company from third parties hereafter may not be used by Company in making, selling or distributing Licensed Products.

 

2.3 Termination of Certain Licenses.  If Company enters into a Change of Control transaction, the licensed rights granted pursuant to Sections 2.1(a) and 2.1(b) of this Agreement will immediately cease to exist, and Company must promptly discontinue all further use of the Licensed Technology for the purposes described in Section 2.1(a) and Section 2.1(b) and certify to Lam in writing signed by an officer of Company that it has fully complied with this requirement.

 

3.                                    TRANSITION OBLIGATIONS

 

3.1 Customer Support.  Company agrees, during the Support Period, to be solely responsible for performing, and in a manner consistent with good industry practice, all installation, training, support, spares, upgrades and other services requested or required by Company Customers, at each Company Customer’s expense, with respect to Licensed Products that are sold by Company, subject to Section 2.1(c) hereof.  Company shall be responsible, without limitation, for maintaining, at Company’s sole expense, a sufficient inventory of spare parts and components to support the spares and service needs of Company Customers during the Support Period, and for maintaining a staff of properly trained technical support personnel sufficient to meet the support needs of Company Customers with respect to Licensed Products that are sold by Company.  Company may not refer any Company Customer to Lam for such support. Lam has no obligation under this Agreement to provide any services to, or respond to any requests from, Company Customers. However, Lam reserves the right to establish and maintain contact with any Company Customer in order to facilitate the delivery of any Licensed Product support needed by such Company Customer.

 

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3.2 Transition Support.  Company agrees, during the Transition Period and as requested by Lam, to use reasonable commercial efforts to assist Lam in transitioning Existing Customers and Existing Customer processes to any dry strip or clean system(s) that Lam may designate and to recommend such Lam designated system to Existing Customers, which efforts will include making Company employees available to meet with Lam and with Existing Customers and to provide other services to Lam or Existing Customers, all as reasonably requested by Lam, at Company’s expense; provided, however, that any out-of-pocket expense incurred by Company at Lam’s request and pre-approved by Lam, including without limitation travel expenses, shall be reimbursed by Lam within 30 days of receipt of Company’s invoice.  Company will consult with Lam in good faith on a regular basis to report operational developments relating to the manufacture or sale of Licensed Products, changes in the status of relationships with Existing Customers or potential customers and other matters reasonably requested by Lam.  Subject to Section 6 hereof, Company agrees that any material communications between Company and any Existing Customer related to the Licensed Products, Lam or this Agreement will be subject to Lam’s prior approval.  Company’s responsibilities under this Section 3.2 shall include using its commercially reasonable efforts to (i) transfer all of Company’s knowledge, know-how and expertise related to the Licensed Products  to Lam, (ii) assist Lam in adapting Existing Customer processes, recipes and know-how related to any Licensed Product to Lam’s designated system and (iii) facilitate the successful qualification of Lam’s designated system for use with such Existing Customer processes and recipes.  Company further agrees to use commercially reasonable efforts, at Company’s sole expense (except for out-of-pocket expenses as described above), to assist Lam in obtaining any Existing Customer consents or approvals that Lam may deem necessary or desirable to permit the use of such Existing Customer recipes by Lam, whether in connection with a Licensed Product or any other system designated by Lam.

 

3.3 Maintenance and Operation of Lab System.  Subject to the provisions of this Agreement, Company agrees to hold the Lab System for and on behalf of Lam in Company’s facility.  Company has conducted within the last 30 days, or will conduct promptly following the Effective Date at no additional expense to Lam, a comprehensive maintenance and service of the Lab System including a complete review and assessment of the condition of the Lab System and all components thereof.  In the event the condition of the Lab System is not in good working order as of the Effective Date, Company agrees to perform all necessary repairs, replacements and updates, at no additional expense to Lam for either services or parts, in order to restore the Lab System to good working order.  Company further agrees, during the Transition Period, to maintain the Lab System and all related facilities, utilities, power and other connections in good working order and to operate the Lab System at Lam’s direction free of charge, other than reimbursement of Company’s actual, documented costs of wafers, consumable parts and other operating expenses, provided that such expenses are pre-approved by Lam prior to being incurred.  For the avoidance of doubt, Lam shall not be responsible for any facilities, utilities, power, infrastructure or other costs associated with the Lab System or the operation thereof during the Transition Period, other than such expenses as are pre-approved by Lam in accordance with the preceding sentence.  Upon Lam’s request, Company agrees to cooperate with Lam to arrange for the packaging and shipment of the Lab System in the manner and to the location reasonably specified by Lam, the cost of which shipment shall be paid by Lam.   Following the expiration of the Transition Period, if Lam has not requested the shipment of the Lab System from Company’s facility, Company and Lam will mutually agree on the location and maintenance of the Lab System.  Company shall ensure that, at all times prior to the delivery of

 

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the Lab System to Lam, Company shall provide Lam and its representatives with free and complete access (during normal working hours unless otherwise agreed) to the Lab System and to the subsystems, abatement and clean room infrastructure needed to operate the Lab System, and to such operating, technical and other records, data, documents and information relating to the Lab System as Lam may reasonably request.

 

3.4 Branding Restrictions.  Company will use the Licensed Marks to identify the Licensed Products and in all materials used to advertise, market, or promote the Licensed Products in a manner approved in advance by Lam.  Company agrees that all use of the Licensed Marks will comply with Lam’s then-current trademark usage guidelines and policies.  Company must reproduce, on all Licensed Products, and must not remove, alter, or obscure in any way all proprietary rights notices of Lam on or within the Licensed Products and the User Documentation.  Lam grants no rights in the Licensed Marks other than those granted in Section 2.1.  Company acknowledges Lam’s exclusive ownership of the Licensed Marks.  Company agrees not to take any action inconsistent with such ownership and to cooperate, at Lam’s request and expense, in any action which Lam deems necessary or desirable to establish or preserve Lam’s exclusive rights in and to the Licensed Marks.  Company will not adopt, use, or attempt to register any trademarks or trade names that are confusingly similar to the Licensed Marks or in such a way as to create combination marks with the Licensed Marks.  Company will provide Lam with samples of all products and materials that contain the Licensed Marks prior to their public use, distribution, or display for Lam’s quality assurance purposes and will obtain Lam’s written approval before such use, distribution, or display.  At Lam’s request, Company will modify or discontinue any use of the Licensed Marks if Lam determines that such use does not comply with Lam’s then-current trademark usage policies and guidelines.

 

4.                                    REPORTS AND RECORDS

 

4.1 Reports.  Within forty-five (45) days after the end of each fiscal quarter during the Support Period, Company will provide Lam with a written report stating (a) the number of Licensed Products made and sold by Company during such quarter, (b) the identity and location of the Company Customers that received such Licensed Products, (c) the date of shipment of such Licensed Products, and (d) any other information that may be reasonably requested by Lam.

 

4.2 Records.  At all times during the Support Period, and for at least three (3) years thereafter, Company will maintain at its principal place of business complete and accurate records with respect to Company’s activities pursuant to this Agreement, including a complete list of all Licensed Products made or sold by Company and a complete list of Company Customer names, addresses, electronic mail addresses, and primary contacts.

 

4.3 Audits.  Lam will have the right, during normal business hours and upon at least ten (10) days prior notice, to inspect Company’s facilities and audit Company’s records relating to Company’s activities pursuant to this Agreement in order to verify that Company has complied with the terms of this Agreement, including the terms of the licenses granted in Section 2.1 hereof.  The audit will be conducted at Lam’s expense, unless the audit reveals that Company has violated the terms of Section 2.1 or 4.1, in which case Company will reimburse Lam for all costs and expenses incurred by Lam in connection with such audit.

 

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5.                                    COMPANY’S OTHER OBLIGATIONS

 

5.1 Compliance with Laws.  Company will at all times comply with all applicable laws and regulation in manufacturing and selling the Licensed Products.

 

5.2 Warranties Made by Company.  Company will not make or publish any representations, warranties, or guarantees on behalf of Lam concerning the Licensed Products.

 

5.3 Insurance.  Company shall, at its sole cost and expense, obtain and maintain in full force and effect appropriate liability insurance with reputable insurers and at such coverage levels as are customary in Company’s business.

 

6.                                    CONFIDENTIALITY

 

6.1 Confidential Information.  Each party (the “Disclosing Party”) may from time to time during the term of this Agreement disclose to the other party (the “Receiving Party”) certain information regarding the Disclosing Party’s business, including technical, marketing, financial, employee, planning, and other confidential or proprietary information (“Confidential Information”).  The Disclosing Party will mark all Confidential Information in tangible form as “confidential” or “proprietary” or with a similar legend.  The Disclosing Party will identify all Confidential Information disclosed orally as confidential at the time of disclosure and provide a written summary of such Confidential Information to the Receiving Party within thirty (30) days after such oral disclosure.  Regardless of whether so marked or identified, however, any information relating to the Licensed Technology that Company knew or should have known, under the circumstances, was considered confidential or proprietary by Lam will be considered Confidential Information of Lam.

 

6.2 Protection of Confidential Information.  The Receiving Party will not use any Confidential Information of the Disclosing Party for any purpose not expressly permitted by this Agreement, and will disclose the Confidential Information of the Disclosing Party only to the employees of the Receiving Party who have a need to know such Confidential Information for purposes of this Agreement and who are under a duty of confidentiality no less restrictive than the Receiving Party’s duty hereunder.  The Receiving Party will protect the Disclosing Party’s Confidential Information from unauthorized use, access, or disclosure in the same manner as the Receiving Party protects its own confidential or proprietary information of a similar nature and with no less than reasonable care.

 

6.3 Exceptions.  The Receiving Party’s obligations under Section 6.2 with respect to any Confidential Information of the Disclosing Party will terminate if such information: (a) was already lawfully known to the Receiving Party at the time of disclosure by the Disclosing Party; (b) is lawfully received by the Receiving Party from a third party without any confidentiality restrictions; (c) is, or through no fault of the Receiving Party has become, generally available to the public; or (d) is independently developed by the Receiving Party without access to, or use of, the Disclosing Party’s Confidential Information.  In addition, the Receiving Party will be allowed to disclose Confidential Information of the Disclosing Party to the extent that such disclosure is (i) approved in writing by the Disclosing Party, or (ii) required by law or by the order or a court of similar judicial or administrative body, provided that the Receiving Party, if

 

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permitted by law, notifies the Disclosing Party of such required disclosure promptly and in writing and cooperates with the Disclosing Party, at the Disclosing Party’s reasonable request and expense, in any lawful action to contest or limit the scope of such required disclosure.

 

6.4 Return of Confidential Information.  The Receiving Party will return to the Disclosing Party all Confidential Information of the Disclosing Party in the Receiving Party’s possession or control and permanently erase all electronic copies of such Confidential Information promptly upon the written request of the Disclosing Party or the expiration or termination of this Agreement, whichever comes first.

 

6.5 Confidentiality of Agreement.  Except as provided in Section 5.7 of the Asset Purchase Agreement between the parties dated the date hereof, neither party will disclose any terms of this Agreement to anyone other than its Affiliates, attorneys, accountants, and other professional advisors under a duty of confidentiality except (a) as required by law or (b) pursuant to a mutually agreeable press release.

 

7.                                    WARRANTIES; INDEMNIFICATION

 

7.1 Warranties by Both Parties.  Each party warrants that it has full power and authority to enter into and perform this Agreement, and the person signing this Agreement on such party’s behalf has been duly authorized and empowered to enter into this Agreement.

 

7.2 Disclaimer of Warranties.  THE LICENSED TECHNOLOGY IS PROVIDED “AS IS” AND COMPANY ACKNOWLEDGES THAT LAM MAKES NO WARRANTIES, WHETHER EXPRESS, IMPLIED, OR STATUTORY, REGARDING THE LICENSED TECHNOLOGY, INCLUDING ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, OR NON-INFRINGEMENT OF THIRD-PARTY RIGHTS.

 

7.3 Indemnification.  Company agrees to defend, indemnify and hold harmless Lam and its Affiliates from and against any claims, suits, losses, damages, liabilities, costs, and expenses (including reasonable attorneys’ fees) brought by third parties resulting from or relating to:

 

(a)        any breach by Company of its obligations, duties, or responsibilities under this Agreement;

 

(b)       any actions or omissions on the part of Company in making, selling or distributing the Licensed Products;

 

(c)        any claims against Lam made by Company Customers who receive the Licensed Products from Company.

 

Lam agrees to give Company prompt written notice of any such claim and cooperate with Company, at Company’s reasonable request and expense, in defending or settling the claim.

 

8.         LIMITATION OF LIABILITY. IN NO EVENT WILL LAM BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, EXEMPLARY, SPECIAL OR INCIDENTAL DAMAGES,

 

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INCLUDING ANY LOST PROFITS, ARISING FROM OR RELATING TO THIS AGREEMENT.

 

9.                                    TERM AND TERMINATION

 

9.1 Term.  The term of this Agreement will begin on the Effective Date and continue indefinitely unless terminated pursuant to Section 9.2.

 

9.2 Termination.

 

(a)        Lam may terminate this Agreement, effective immediately upon written notice to Company, if:  (i) Company materially breaches any provision of this Agreement and does not cure the breach within forty-five (45) days after receiving written notice thereof from Lam; (ii) any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding is commenced by or against Company, or Company fails to continue to do business in the ordinary course, or Company becomes insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they become due, or Company applies for or consents to the appointment of a trustee, receiver or other custodian for Company, or makes a general assignment for the benefit of its creditors; or (iii) Company enters into a Change of Control transaction.

 

(b)       Company may terminate this Agreement, effective immediately upon written notice to Lam, if Lam materially breaches any provision of this Agreement and does not cure the breach within forty-five (45) days after receiving written notice thereof from Company.

 

9.3 Effects of Termination

 

(a)        Licenses.  Upon termination of this Agreement by Lam pursuant to Section 9.2(a)(i) or (ii), all licensed rights granted in this Agreement will immediately cease to exist, and Company must promptly discontinue all further use of the Licensed Technology and certify to Lam in writing signed by an officer of Company that it has fully complied with this requirement. Upon termination of this Agreement by Lam pursuant to Section 9.2(a)(iii) or by Company pursuant to Section 9.2(b), the licensed rights granted pursuant to Sections 2.1(c) and 2.1(d) of this Agreement will survive in perpetuity but Company shall have no other licensed rights under this Agreement.

 

(b)       Survival.  Sections 1 (Definitions), 2.2 (Ownership of Intellectual Property Rights), 6 (Confidentiality), 7 (Warranties; Indemnification), 8 (Limitation of Liability), 9.3 (Effects of Termination), and 10 (General) will survive expiration or termination of this Agreement for any reason.

 

10.                            GENERAL

 

10.1     Export and Import Laws.  Company will comply with all applicable export and import control laws and regulations in its use of the Licensed Technology.

 

10.2     Assignments.  Neither party may assign or transfer, by operation of law or otherwise, any of its rights under this Agreement (including any licenses with respect to the

 

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Licensed Technology) or delegate any of its duties under this Agreement to any third party without the other party’s prior written consent, except that a party may assign this Agreement without such consent to its successor in interest by way of merger, acquisition or sale of all or substantially all of its assets.  Any attempted assignment or transfer in violation of the foregoing will be void. The terms of this Agreement shall be binding upon assignees.  For the avoidance of doubt, the provisions of this Agreement relating to Company’s entry into a Change of Control transaction shall apply notwithstanding this Section 10.2.

 

10.3     Notices.  All notices, consents and approvals under this Agreement must be delivered in writing by courier, by electronic facsimile (fax), or by certified or registered mail, (postage prepaid and return receipt requested) to the other party at the address set forth beneath such party’s signature, and will be effective upon receipt or three (3) business days after being deposited in the mail as required above, whichever occurs sooner.  Either party may change its address by giving notice of the new address to the other party.

 

10.4     Governing Law and Venue.  This Agreement will be governed by the laws of the State of New York as such laws apply to contracts between New York residents performed entirely within New York.  Any action or proceeding arising from or relating to this Agreement must  be brought in a federal court in the Southern District of New York or in state court in New York, New York, and each party irrevocably submits to the jurisdiction and venue of any such court in any such action or proceeding.

 

10.5     Remedies.  The parties’ rights and remedies under this Agreement are cumulative.  Company acknowledges that the Licensed Technology contains valuable trade secrets and proprietary information of Lam, that any actual or threatened breach of Section 6 (Confidentiality) will constitute immediate, irreparable harm to Lam for which monetary damages could be an inadequate remedy, and that injunctive relief may be an appropriate remedy for such breach.  If Company continues to make or sell Licensed Products after its right to do so has terminated or expired, Lam will be entitled to immediate injunctive relief without the requirement of posting bond, including an order directing that any Licensed Products that Company attempts to import into any country or territory be seized, impounded, and destroyed by customs officials.  Lam acknowledges that any actual or threatened breach by Lam of the licenses granted in Section 2.1 will constitute immediate, irreparable harm to Company for which monetary damages could be an inadequate remedy, and that injunctive relief may be an appropriate remedy for such breach.  If any legal action is brought to enforce this Agreement, the prevailing party will be entitled to receive its attorneys’ fees, court costs, and other collection expenses, in addition to any other relief it may receive.

 

10.6     Waivers.  All waivers must be in writing.  Any waiver or failure to enforce any provision of this Agreement on one occasion will not be deemed a waiver of any other provision or of such provision on any other occasion.

 

10.7     Severability.  If any provision of this Agreement is unenforceable, such provision will be changed and interpreted to accomplish the objectives of such provision to the greatest extent possible under applicable law and the remaining provisions will continue in full force and effect.

 

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10.8     Construction.  The headings of Sections of this Agreement are for convenience and are not to be used in interpreting this Agreement.  As used in this Agreement, the word “including” means “including but not limited to.”

 

10.9     Counterparts.  This Agreement may be executed in counterparts, each of which will be considered an original, but all of which together will constitute the same instrument.

 

10.10   Force Majeure.  Any delay in the performance of any duties or obligations of either party will not be considered a breach of this Agreement if such delay is caused by a fire, earthquake, flood, or any other event beyond the reasonable control of such party, provided that such party uses reasonable efforts, under the circumstances, to notify the other party of the circumstances causing the delay and to resume performance as soon as possible.

 

10.11   Independent Contractors.  Company’s relationship to Lam is that of an independent contractor, and neither party is an agent or partner of the other.  Company will not have, and will not represent to any third party that it has, any authority to act on behalf of Lam.

 

10.12   Entire Agreement.  This Agreement constitutes the entire agreement between the parties regarding the subject hereof and supersedes all prior or contemporaneous agreements, understandings, and communication, whether written or oral.  This Agreement may be amended only by a written document signed by both parties.  The terms on any purchase order or similar document submitted by Company to Lam will have no effect.

 

IN WITNESS WHEREOF, the parties have executed this Transition Agreement as of the Effective Date.

 

 

	
LAM RESEARCH CORPORATION
    	
 
    	
AXCELIS TECHNOLOGIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: /s/ Sarah O’Dowd
    	
 
    	
By: /s/ Jay Zager
    
	
 
    	
 
    	
 
    
	
Name: Sarah O’Dowd
    	
 
    	
Name: Jay Zager
    
	
 
    	
 
    	
 
    
	
Title: Group Vice   President and Chief Legal Officer
    	
 
    	
Title: Executive Vice   President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address for Notice:
    	
 
    	
Address for Notice:
    
	
 
    	
 
    	
 
    
	
4650 Cushing Parkway
    	
 
    	
108 Cherry Hill Drive
    
	
Fremont, CA 94538
    	
 
    	
Beverly, MA 01915
    
	
Attn: General Counsel
    	
 
    	
Attn: General Counsel
    
	
Fax: (510) 572-2876
    	
 
    	
Fax: 978-787-4090
    

 

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EXHIBIT A

 

ADVANCED PRODUCTS

 

	
Product   Line Family
    	
Wafer
   Size
    	
Product
    
	
Chuck based   systems
    	
300
    	
Integra RS
    
	
 
    	
300
    	
Integra ES
    
	
 
    	
300
    	
RapidStrip 320   (RpS320)
    
	
Lamp based   systems
    	
300
    	
RadiantStrip   320(RdS320),
    
	
 
    	
300
    	
RadiantStrip ES   (RdS320ES)
    
	
 
    	
300
    	
RadiantStrip   320i (RdS320i)
    
	
 
    	
300
    	
RadiantStrip 320   Low K (RdS320LK)
    

 

 

EXHIBIT B

 

LEGACY PRODUCTS

 

	
Product   Line Family
    	
Wafer
   Size
    	
Product
    
	
 Chuck based   systems
    	
150, 200
    	
RapidStrip 210 (RpS210)
    
	
 Lamp based   systems
    	
200
    	
RadiantStrip 220ES-SMIF   (RdS220ES-SMIF)
    
	
 
    	
200
    	
RadiantStrip 220-SMIF   (RdS220-SMIF)
    
	
 
    	
200
    	
RadiantStrip 220ES   (RdS220ES)
    
	
 
    	
200
    	
RadiantStrip 220   (RdS220)
    
	
 
    	
150, 200
    	
FusionGemini ES (GES)
    
	
 
    	
150, 200
    	
FusionGemini ES –IS   (GES-IS)
    
	
 
    	
150, 200
    	
FusionGemini Asher   (GPL)
    
	
 
    	
150, 200
    	
FusionGemini Asher   (GPL-IS)
    

 

 

EXHIBIT C

 

LICENSED MARKS

 

The tradenames listed for the Products on Exhibit A and B.Exhibit 10.20

 

STEEL DYNAMICS, INC.

 

CHANGE IN CONTROL BENEFIT PLAN

 

1.             Introduction.

 

This Steel Dynamics, Inc. (“SDI” or the “Company”) Change in Control Benefits Plan (the “CIC Plan”) is established, effective as of December 1, 2012.

 

(a)           Purpose. The purpose of the Plan is to describe eligibility for certain post-employment benefits for Eligible Executives (as defined, and in the amounts set forth, below), whose employment is involuntarily terminated as a result of, or following, a Change in Control (as defined below).

 

(b)           Effect. This Plan, to the extent that it provides Eligible Executives with benefits upon a change in control event (i) supersedes and replaces any other prior plans, policies or practices of the Company or any of its subsidiaries, but only on a dollar-for-dollar basis, that relate to severance payments or acceleration of vesting requirements with respect to any stock options, restricted stock units, performance units, or any other equity-based securities, triggered specifically upon a change in control (as may be defined therein ), and (ii) replaces, but only on a dollar-for-dollar basis, any other like-kind benefits or payments that may be payable to the Eligible Executive upon a termination of service unrelated to a Change in Control event, the purpose of such offset being to insure that any such change in control payment is not duplicative of a similar payment otherwise also payable to the Eligible Employee merely because the termination of that person’s employment associated with the Change in Control event also constitutes a termination of employment without regard to that Change in Control event. Notwithstanding the foregoing, this CIC Plan, and any the payment required hereby, is and will be deemed subordinated, in any event, to any individually negotiated severance benefit agreement, in writing, whether in the form of a change in control severance agreement, as such, or an employment agreement that also provides for severance benefits upon a change in control event.

 

2.             Definition of Terms.

 

The following capitalized terms used in this CIC Plan shall have the following meanings:

 

(a)           Cause. “Cause” shall mean (i) gross negligence or willful misconduct in the performance of an Eligible Executive’s duties to Company; (ii) a material and willful violation of any federal or state law by an Eligible Executive that if made public would injure the business or reputation of Company; (iii) refusal or willful failure by an Eligible Executive to comply with any specific lawful direction or order of Company or the material policies and procedures of Company, including but not limited to the Steel Dynamics, Inc. Code of Ethics for Principal Executive Officers and Senior Financial Officers (iv) conviction (including a plea of nolo contendere ) of an Eligible Executive of a felony, or of a misdemeanor that would have a material adverse effect on the Company’s goodwill or commercial relationships if such Eligible Executive were to

 

 

continue to be retained as an employee of the Company; or (v) substantial and continuing willful refusal by an Eligible Executive to perform duties ordinarily performed by an employee in the same position and having similar duties as such Eligible Executive; in each case as reasonably determined by the Compensation Committee or the Board of Directors of the Company (the “Board”).

 

(b)           Change in Control. “Change in Control” shall mean the occurrence of one or more of the following with respect to the Company:

 

(i)            the acquisition by any person (or related group of persons), whether by tender or exchange offer made directly to the Company’s stockholders, open market purchases or any other transaction or series of transactions, of stock of the Company that, together with stock of the Company held by such person or group, constitutes more than fifty percent (50%) of the total voting power of the then outstanding stock of the Company entitled to vote generally in the election of the members of the Company’s Board;

 

(ii)           a merger or consolidation in which the Company is not the surviving entity, except for a transaction in which both (A) securities representing more than fifty percent (50%) of the total combined voting power of the surviving entity are beneficially owned (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934), directly or indirectly, immediately after such merger or consolidation by persons who beneficially owned common stock immediately prior to such merger or consolidation, and (B) the members of the Board immediately prior to the transaction (the “Existing Board”) constitute a majority of the Board immediately after such merger or consolidation;

 

(iii)          any reverse merger in which the Company is the surviving entity but in which either (A) persons who beneficially owned, directly or indirectly, common stock immediately prior to such reverse merger do not retain immediately after such reverse merger direct or indirect beneficial ownership of securities representing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities, or (B) the members of the Existing Board do not constitute a majority of the Board of Directors immediately after such reverse merger; or

 

(iv)          the sale, transfer or other disposition of all or substantially all of the assets of the Company (other than a sale, transfer or other disposition to one or more subsidiaries of the Company).

 

(c)           Disability. “Disability” shall mean a mental or physical disability, illness or injury, evidenced by medical reports from a duly qualified medical practitioner, which renders an Eligible Executive unable to perform any one or more of the essential duties of his or her position after the provision of reasonable accommodation, if applicable, for a period of greater than ninety (90) days within a one year period.

 

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(d)           “Eligible Executives” shall mean (i) the Chief Executive Officer of the Company; (ii) the Executive Vice President for Steelmaking, President and COO of Steel Operations;(iii) the Executive Vice President and Chief Financial Officer; (iv) the Executive Vice President of Metals Recycling, President and COO of OmniSource; the Executive Vice President of Business Development, President and COO of New Millennium Building Systems; and (v) such other Executive Vice Presidents or other senior officers, by name and title, as may be recommended by the Chief Executive Officer and approved by the Compensation Committee of the Board.

 

(e)           Good Reason. “Good Reason” shall mean an Eligible Executive’s resignation from the Company within thirty (30) days following the occurrence of any of the following events with respect to such Eligible Executive:

 

(i)            without Eligible Executive’s express written consent, the significant reduction of Eligible Executive’s duties, authority, responsibilities, or reporting relationships relative to Eligible Executive’s duties, authority, responsibilities, or reporting relationships as in effect immediately prior to such reduction, or the assignment to Eligible Executive of such reduced duties, authority, responsibilities, or reporting relationships, which reduction or assigned reduction remains in effect five (5) business days after written notice by the Eligible Executive to the Chief Executive Officer of such conditions; provided, however, that the mere occurrence of a Change in Control shall not, in and of itself, constitute a material adverse change in Eligible Executive’s duties, authority, responsibilities or reporting relationships.

 

(ii)           a material reduction by Company in the base salary, bonus structure or benefits of Eligible Executive as in effect immediately prior to such reduction, with the result that Eligible Executive’s overall benefits package is significantly reduced; or

 

(iii)          the relocation of Eligible Executive’s principal work location to a facility or a location more than fifty (50) miles from Eligible Executive’s then present principal work location, without Eligible Executive’s express written consent.

 

(f)            Termination Date. “Termination Date” shall mean:

 

(i)            if an Eligible Executive’s employment is terminated by Company for Disability, the date designated by Company as the last day of such Eligible Executive’s employment;

 

(ii)           if an Eligible Executive dies, the date of death;

 

(iii)          if an Eligible Executive’s employment is terminated by Company for any other reason, the date designated by Company as the last day of such Eligible Executive’s employment; or

 

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(iv)          if an Eligible Executive’s employment is terminated by such Eligible Executive, the date designated by Company as the effective date of resignation.

 

3.                                      Severance and Other Benefit Payments: Unless otherwise prescribed by the Compensation Committee, upon recommendation by the Chief Executive Officer, Eligible Executives will receive the benefits described herein under the following circumstances:

 

(a)           Termination in Connection with a Change in Control. If an Eligible Executive’s employment terminates either by Company without Cause, or by such Eligible Executive for Good Reason, at any time commencing during the period beginning six (6) months prior to a Change in Control and ending twenty-four (24) months following a Change of Control (the “Change in Control Period”), then, subject to the Eligible Executive’s execution and delivery of an effective release of claims against Company, and any related parties, that releases Company and any such parties from any claims whatsoever arising from or related to the Eligible Executive’s employment relationship with Company, including the termination of that relationship, in a form reasonably acceptable to the Company, the Eligible Executive will receive or otherwise become entitled to the following:

 

(i)            acceleration in full, so as to become immediately and completely vested, or acceleration of any applicable deferred settlement dates (subject in all cases to applicable holding periods) of any and all unvested stock options, restricted stock units, performance units, or any other equity-based securities or similar incentives that have been awarded to Eligible Executive as of the Termination Date. In all other respects, Eligible Executive’s securities shall continue to be subject to the terms of the applicable equity incentive plan, the notice of grant and any grant agreement;

 

(ii)           in the case of the Chief Executive Officer, or, from time to time, upon recommendation by the Chief Executive Officer and approval by the Compensation Committee, any other senior officer , by name and title (each thereafter a “Tier One Officer”), including, if so recommended, those officers noted in Section 3(a)(iii), a lump sum cash payment equal to (A) two (2) times that person’s highest base salary, at the Chief Executive Officer’s or such other designated Tier One Officer’s highest base salary rate then in effect as of the Termination Date (without taking into account any reduction in base salary that could independently trigger Eligible Executive’s resignation for Good Reason), plus (B) two (2) times the greater of that person’s target bonus or average actual bonus for the prior two (2) years, pursuant to the Company’s 2008 Executive Incentive Compensation Plan (the “Annual Bonus Plan”) or its annual bonus plan successor), less, in all instances, applicable withholding taxes or other withholding obligations of the Company, and less any amounts to which the Chief Executive Officer or other Tier One Officer is otherwise entitled under any statutory or Company long or short term disability plan, or by reason of any other plans, policies or practices of the Company that, if and to the extent implemented, would result in benefit payments to the Chief Executive Officer or such other Tier

 

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One Officer, on the occasion of a termination of employment without Cause, unrelated to a Change in Control event;

 

(iii)          except if otherwise previously designated and approved as a Tier One Officer, in the case of the Executive Vice President and Chief Operating Officer of the Company, the Chief Financial Officer of the Company, or, upon recommendation by the Chief Executive Officer and approval by the Compensation Committee, any other senior officer , by name and title (each thereafter a “Tier Two Officer”) a lump sum cash payment equal to (A) one and one-half (11⁄2) times such Tier Two Officer’s base salary, at such Tier Two Officer’s highest base salary rate then in effect as of the Termination Date (without taking into account any reduction in base salary that could independently trigger such person’s resignation for Good Reason), plus (B) one and one-half (11⁄2) times the greater of such Tier Two Officer’s target bonus or average actual bonus for the prior two (2) years, pursuant to the Company’s Annual Bonus Plan or its annual bonus plan successor, less, in all instances, applicable withholding taxes or other withholding obligations of the Company, and less any amounts to which such Tier Two Officer is otherwise entitled under any statutory or Company long or short term disability plan, or by reason of any other plans, policies or practices of the Company that, if and to the extent implemented, would result in benefit payments to the that Tier Two Officer on the occasion of a termination of employment without Cause, unrelated to a Change in Control event; and

 

(iv)          if Eligible Executive elects benefits continuation under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) following termination of employment, payment of the full cost of such benefits (either directly to Eligible Executive or to the appropriate carrier or administrator at the Company’s election) for the lesser of (a) twenty-four (24) months or (b) until such time as Eligible Executive becomes eligible for reasonably comparable health care benefits from a subsequent employer.

 

(b)           Voluntary Resignation; Termination for Cause. If an Eligible Executive’s employment terminates by reason of voluntary resignation (which is not for Good Reason), or if an Eligible Executive is terminated for Cause, then such Eligible Executive is not entitled to receive any benefits under Section 3(a) of this CIC Plan.

 

(c)           Disability. If an Eligible Executive suffers from a Disability, the Company may terminate such Eligible Executive’s employment to the extent permitted by law and, if such termination occurs during the Change in Control Period, Company will then pay to that Eligible Executive the compensation set forth in Section 3(a) of this Plan.

 

(d)           Death. If the Eligible Executive’s employment is terminated due to the death of such Eligible Executive within twenty-four (24) months following a Change in Control, then the compensation set forth in Section 3(a) of this Plan will be paid to the former Eligible Executive’s estate.

 

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(e)           Application of Section 409A. Notwithstanding any inconsistent provision of this CIC Plan, to the extent the Company determines in good faith that (a) one or more of the payments or benefits received or to be received by an Eligible Executive pursuant to this CIC Plan in connection with such Eligible Executive’s termination of employment would constitute deferred compensation subject to the rules of Section 409A, and (b) that the Eligible Executive is a “specified employee” under Section 409A, then, but only to the extent required to avoid the Eligible Executive’s incurrence of any additional tax or interest under Section 409A of the Code, such payment or benefit will be delayed until the date which is six (6) months after the Eligible Executive’s “separation from service,” within the meaning of Section 409A. The Company will revise any applicable provisions of this CIC Plan to maintain to the maximum extent practicable the original intent of the applicable CIC Plan provisions without violating the provisions of Section 409A of the Code, if the Company deems such revisions necessary or advisable pursuant to guidance under Section 409A to avoid the incurrence of any such interest and penalties. Such revisions shall not result in a reduction of the aggregate amount of payments or benefits under this Plan, without regard to the delayed payment, if any, that might be required hereunder.

 

(f)            Termination Not in Connection With a Change of Control. If the Executive’s employment terminates for any reason or no reason, whether on account of Disability, death, or otherwise, other than during the Change in Control Period, then such Eligible Executive shall not be entitled to receive severance or any other benefits under Section 3(a) of this Plan.

 

(g)           Coordination with Other Change of Control Benefits, Severance Benefits or Debts. If an Eligible Executive is entitled to cash payments, accelerated vesting of stock options or restricted stock grants, or any other benefits from Company following the termination of such Eligible Executive’s employment, after a Change in Control but pursuant to any other individually negotiated agreement, of the kind contemplated by Section I(b) hereof, then any benefits to which that Eligible Executive may become entitled under this CIC Plan shall be reduced by the benefits, if any, to which that Eligible Executive may become entitled to from the Company under such other agreement. Furthermore, if an Eligible Executive is indebted to the Company at the time of a termination, and the situation is such as would give rise to severance benefits under Section 3(a) of this CIC Plan, the Company shall have the right, but not the obligation to offset such severance payment under this CIC Plan by all or any portion of such indebtedness.

 

4.             At-Will Employment. Subject only to any applicable individual employment agreement between the Company and an Eligible Executive, or to any applicable policy of the Company, nothing herein shall be construed to imply a right to continued employment, for any specific period or otherwise, and each Eligible Executive’s employment, unless otherwise provided pursuant to any such other individual employment agreement or policy, is and shall continue to be at-will, as defined under applicable law. If an Eligible Executive’s employment terminates for any reason other than as specified in Section 3, such Eligible Executive shall not be entitled to any benefits, damages, awards or compensation under this CIC Plan.

 

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5.             Tax Matters. The Company may withhold from any amounts payable under the CIC Plan such federal, state and local taxes as may be required to be withheld. In the event that any payment or other benefits provided for in this CIC Plan or otherwise payable to an Eligible Executive (i) would constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) become subject to the excise tax imposed by Section 4999 of the Code (or any corresponding provisions of state tax law), then, notwithstanding the other provisions of this CIC Plan, such Eligible Executive’s benefits under Section 3 will be reduced by an amount necessary to insure that such payments under this CIC Plan, together with any other payments that may constitute parachute payments for purposes of Section 280G, are at least one dollar less than the aggregate amount that, if applicable, would otherwise render such payments subject to Section 280G. 6. Severability, Enforcement. If any provision of this CIC Plan, or the application thereof to any person, place or circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable or void, the remainder of this CIC Plan and such provisions as applied to other persons, places and circumstances shall remain in full force and effect.

 

7.             General.

 

(a)           Notice. Notices and all other communications contemplated by this CIC Plan shall be in writing and shall be deemed to have been duly given either (i) when personally delivered or sent by facsimile or (ii) five (5) days after being mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of an Eligible Executive, mailed notices shall be addressed to him or her at the home address or facsimile number which he or she most recently communicated to Company in writing. In the case of Company, mailed notices or notices sent by facsimile shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Chief Financial Officer.

 

(b)           Amendment. Prior to a Change in Control, the Company reserves the right to amend or terminate this CIC Plan. Upon a Change in Control, this Plan will become non-modifiable without the consent of the affected Eligible Executive(s).

 

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