Document:

exh10-211_16709.htm

EXHIBIT 10.21.1

 

 

License Reference Number L095638A

 

	
EXECUTION COPY

	PATENT LICENSE

 

 

PATENT LICENSE AGREEMENT (“Patent Agreement”) between INTERNATIONAL BUSINESS MACHINES CORPORATION, a New York corporation (“IBM”), and NEXX SYSTEMS INC., a Delaware corporation (“NEXX”).

 

WHEREAS, concurrent with the execution of this Patent Agreement, the parties are entering into an agreement entitled “Joint Development Agreement between International Business Machines Corporation and NEXX SYSTEMS, INC” (“JDA”) under which IBM and NEXX shall be licensing to each other certain technology, more specifically defined in the JDA;

 

WHEREAS, in light of the JDA both parties desire to grant to one another and acquire from one another a license to certain patents, as more specifically defined herein,

 

WHEREAS, for the purposes of this Patent Agreement the definitions in Section 1 of this Patent Agreement shall take precedence in this Patent Agreement, unless a definition in the JDA is used that is not in Section 1 of this Patent Agreement, in which case the definition of the JDA on the Patent Agreement Date shall take precedence. However, any amendment to the JDA other than to this Patent Agreement shall not apply to this Patent Agreement unless specifically amended in this Patent Agreement and signed by the IBM signator of this Patent Agreement below or his designee,

 

NOW THEREFORE, in consideration of the premises and mutual covenants herein contained and contained in the JDA, IBM and NEXX agree as follows:

 

Section 1.       Definitions

 

“Patent Agreement Date” shall mean the date by which this Patent Agreement is signed by both parties.

 

“Effective Date” shall mean the date defined as the Effective Date in the JDA.

 

“Futures Date” shall mean the date one year and one day after the termination or expiration of the JDA.

 

“IHS Product” shall mean an Information Handling System or any instrumentality or aggregate of instrumentalities (including, without limitation, any component, subassembly, computer program or supply) designed for incorporation in an Information Handling System. Any instrumentality or aggregate of instrumentalities primarily designed for use in the fabrication (including testing) of an IHS Product shall not be considered to be an IHS Product.

 

 

 

 

 

“Information Handling System” shall mean any instrumentality or aggregate of instrumentalities primarily designed to compute, classify, process, transmit, receive, retrieve, originate, switch, store, display, manifest, measure, detect, record, reproduce, handle or utilize any form of information, intelligence or data for business, scientific, control or other purposes.

 

“IBM Licensed Patent” shall mean all patents throughout the world that would necessarily be infringed by use of the IBM Background Technology within the scope of the licenses granted under the JDA to make, use and/or sell NEXX Licensed Product, as those terms are defined in the. JDA, and:

 

	
(a)  

	
issued or issuing on patent applications entitled to an effective filing date prior to the Futures Date; and

	
(b)  

	
under which patents or the applications therefor IBM or any of its Subsidiaries has as of the Patent Agreement Date, or thereafter obtains, the right to grant licenses to NEXX of or within the scope granted herein without such grant or 'the exercise of rights thereunder resulting in the payment of royalties or other consideration by IBM or its Subsidiaries to third parties (except for payments among IBM and its Subsidiaries, and payments to third parties for inventions made by said third parties while employed by IBM or any of its Subsidiaries).

 

Licensed Patents shall include: patent applications entitled to an effective filing date prior to Futures Date which satisfy part (b) of this definition; and patent applications (including reissues, continuations, divisionals and. continuations-in-part) and patents issuing thereon, which claim priority from a Licensed Patent owned by IBM or any of its Subsidiaries on or after the Patent Agreement Date, and which patent applications are filed on or after the Patent Agreement Date by a subsequent assignee of said Licensed Patent, by IBM or by IBM's Subsidiary, but only to the extent the claims of said patent applications are entitled to said priority.

 

“IBM Licensed Products” shall mean IHS Products.

 

“NEXX Licensed Patents” shall mean all patents throughout the world that read on the IBM Background Technology and/or the NEXX Background Technology, as those terms are defined in the JDA, and:

 

	
(a)  

	
issued or issuing on patent applications entitled to an effective filing date prior to the Futures Date; and

	
(b)  

	
under which patents or the applications therefor NEXX or any of its Subsidiaries has as of the Patent Agreement Date, or thereafter obtains, the right to grant licenses to IBM of or within the scope granted herein without such grant or the exercise of rights thereunder resulting in the payment of royalties or other consideration, by NEXX or its Subsidiaries to third parties (except for payments among NEXX and its Subsidiaries, and payments to third parties for inventions made by said third parties while employed by NEXX or any of its Subsidiaries).

 

Licensed Patents shall include: patent applications entitled to an effective filing date prior to Futures Date which satisfy part (b) of this definition; and patent applications (including reissues, continuations, divisionals and continuations-'in-part) and patents. issuing thereon, which claim priority from a . Licensed Patent owned by NEXX or any of its Subsidiaries on or after the Patent Agreement Date, and which patent applications are filed on or after the Patent Agreement Date by a subsequent assignee of said Licensed Patent,. by NEXX or by NEXX's Subsidiary, but only to the extent the claims of said patent applications are entitled to said priority.

 

“NEXX Licensed Products” shall have the meaning set forth in the JDA.

 

“Subsidiary” shall have the meaning set forth in the JDA.

 

 

2

 

 

Section 2.      Grants of Rights and Release

 

2.1.1     Each party, as Grantor, on behalf of itself and its Subsidiaries grants to the other party, as Grantee, a nonexclusive and worldwide license under Grantor Licensed Patents:

 

	 	
 (a)

	
to make (including the right to use any apparatus and practice any method in making), use, import, have imported,offer for sale, lease, sell and/or otherwise transfer Grantee Licensed Products; and

	 	
 (b) 

	
to have Grantee Licensed Products made by anothermanufacturer for the use, importation, offer for sale, lease, sale and/or other transfer by Grantee only when the conditions set forth in Section 2.2 are met.

 

The license granted by NEXX to IBM is fully paid up.

 

2.1.2 NEXX, on behalf of itself and its Subsidiaries, grants to IBM, a nonexclusive, paid up and worldwide license under NEXX Licensed Patents:

	
(a)  

	
to use, import, and have imported apparatus for manufacturing IHS Products; and

	
(b)  

	
to make (including the right to use any apparatus and practice any method in making) and have made, subject to the same terms and conditions of Section 4.2.2 of the JDA, apparatus for manufacturing IHS Products for the use and importation by IBM only when the conditions set forth in Section 2.2 are met.

 

2.2 The license granted in Section 2.1.1(b) and 2.1.2(b) to Grantee to have products made by another manufacturer:

	
(a)  

	
shall only apply to products sold to Grantee after the Patent Agreement Date;

	
(b)  

	
shall only apply to Grantee Licensed Products and/or portions thereof for which the specifications were created by Grantee (either solely or jointly with one or more third parties) or for Grantee;

	
(c)  

	
shall only be under claims of Grantor's Licensed Patents, the infringement of which would be necessitated by compliance with such specifications; and

	
(d)  

	
shall not apply to (i) any products in the form manufactured or marketed by said other manufacturer prior to Grantee's furnishing of said specifications, or (ii) any methods used by said other manufacturer.

Unless Grantee informs Grantor to the contrary, Grantee shall be deemed to have authorized said other manufacturer to make . Grantee's Licensed Products under the license granted to Grantee in this section when the conditions specified in this Section 2.2 are fulfilled. In response to a written request identifying a product and a manufacturer, Grantee shall in a timely manner inform Grantor of the quantity of such product, if any, manufactured by such manufacturer pursuant to the license granted in Section 2.1.1(b) and 2.1.2(b).

 

2.3 Except as expressly provided herein, no license or immunity is granted under this Patent Agreement by either party, either directly or by implication, estoppel or otherwise to any third parties acquiring items from either party for the combination of such acquired items with other items (including items acquired from either party hereto) or for the use of such combination.

 

 

3

 

 

2.4 Subject to Section 2.5, the licenses granted herein include the right of each party to grant sublicenses to its Subsidiaries existing on or after the Patent Agreement Date, which sublicenses may include the right of sublicensed Subsidiaries to sublicense other Subsidiaries of said party. No sublicense shall be broader in any respect at any time during the life of this Patent Agreement than the license held at that time by the party that granted the sublicense.

 

2.5 A sublicense granted to a Subsidiary shall terminate on the earlier of:

	
(a)  

	
the date such Subsidiary ceases to be a Subsidiary of a party hereto; and

	
(b)  

	
the date of termination or expiration of the license of the party or Subsidiary that granted the sublicense.

If a Subsidiary ceases to be a Subsidiary and holds any patents under which a party hereto is licensed, such license shall continue for the term defined herein.

 

2.6 In the event that neither a party nor any of its Subsidiaries has the right to grant a license under any particular Licensed Patent of the scope set forth in Section then the license granted herein under said Licensed Patent shall be of the broadest scope which said party or any of its Subsidiaries has the right to grant within the scope set forth above.

 

Section 3.        Payment

 

3.1 Consideration for the license granted to NEXX hereunder shall be 2% of the Selling Price of NEXX Licensed Products and shall constitute a portion of the royalty paid for a particular Licensed Product under Section 5.1 of the JDA.

 

3.2 No license is granted under this Patent Agreement for any NEXX Licensed Product for which the royalty under Section 5.1 of the JDA is not paid.

 

Section 4.      Term and Termination

 

4.1 The term of the licenses granted under this Patent Agreement shall commence on the Effective Date and continue for the life of the Licensed Patents, unless earlier terminated pursuant to this Section 4; provided, however, that this Patent Agreement shall be void ab initio if the JDA does not become effective for any reason prior to February 28, 2009.

 

4.2 The licenses granted to a party under this Patent Agreement, and all sublicenses granted by such party, shall terminate if the licenses granted to such party under the-JDA terminate for any reason.

 

Section 5.      Means of Payment and Communication

 

5.1 Notices and other communications shall include the License Reference Number above and be sent by email, facsimile, reputable overnight courier, or by registered or certified mail to the following addresses and shall be effective upon sending:

 

 

4

 

 

 

 

	
For IBM:

Director of Licensing 

IBM Corporation 

North Castle Drive, MD-NC119

Armonk, NY 10504-1785

Facsimile: 914-765-4380

Email: ipemail@us.ibm.com

	
For NEXX:

CFO Stan Piekos

NEXX Systems Inc.

900 Middlesex Turnpike, Building 6

Billerica MA 01821-3929

 

Facsimile: 979 932 2045

Email:

 

Section 6.      Miscellaneous

 

6.1 Neither party shall assign or grant any right under any of its Licensed Patents unless such assignment or grant is made subject to the terms of this Patent Agreement.

 

6.2 Except as otherwise permitted in this Section 6.2, neither party shall assign any of its rights (other than the right to receive payments) or delegate any of its obligations under this Patent Agreement without the written consent of the other party. Any attempt to do so shall be void. However, a party which undergoes reorganization may assign such rights, privileges and obligations to its legal successor, provided that after the reorganization, the successor and its Subsidiaries will have essentially the same assets as such party and its Subsidiaries had prior to the reorganization. In addition, this Patent Agreement, including the rights, privileges and obligations of a party, shall be assignable by a party in connection with an assignment of such party's rights, privileges and obligations under the JDA, but in such case, only to the assignee of such rights, privileges and obligations under the JDA.

 

6.3 Neither party shall use or refer to this Patent Agreement or any of its provisions in any promotional activity.

 

6.4 Each party represents and warrants that it has the full right and power to grant the license set forth in Section 2. Neither party makes any other representation or warranty, express or implied, nor shall either party have any liability in respect of any infringement of patents or other rights of third parties due to the other party's operation under the license herein granted.

 

6.5 Nothing contained in this Patent Agreement shall be construed as conferring any rights by implication, estoppel or otherwise, under any non-patent intellectual property right, or any patents or patent applications, other than the Licensed Patents. Neither party is required hereunder to furnish or disclose to the other any technical or other information (including copies of Licensed Patents) except as specifically provided herein.

 

6.5 Neither party shall have any obligation hereunder to institute any action or suit against third parties for infringement of any of its Licensed Patents or to defend any action or suit brought by a third party which challenges or concerns the validity of any of its Licensed Patents. Neither party shall have any right to institute any action or suit against third parties for infringement of any of the other party's Licensed Patents. Neither party, nor any of its Subsidiaries, is required to file any patent application, or to secure any patent or patent rights, or to maintain any patent in force.

 

 

5

 

 

6.6 This Patent Agreement shall not be binding upon the parties until it has been signed hereinbelow by or on behalf of each party. No amendment or modification hereof shall be valid or binding upon the parties unless made in writing and signed as aforesaid, except that either party may amend its address in Section 5.1 by written notice to the other party.

 

6.7 If any section of this Patent Agreement is found by competent authority to be invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of such section in every other respect and the remainder of this Patent Agreement shall continue in effect so long as the Patent Agreement still expresses the intent of the parties. However, if the intent of the parties cannot be preserved, this Patent Agreement shall be either renegotiated or terminated.

 

6.8 This Patent Agreement shall be construed, and the legal relations between the parties hereto shall be determined, in accordance with the law of the State of New York, USA, as such law applies to contracts signed and fully performed in New York.

 

6.9 The headings of sections are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Patent Agreement.

 

6.10 Neither party shall be considered the author of this Patent Agreement for the purpose of interpreting any provision herein.

 

6.11 Until the Futures Date, each party, on behalf of itself.and its Subsidiaries, agrees not to disclose any term or condition of this Patent Agreement to any third party without the prior written consent of the other party. This obligation is subject to the following exceptions:

	
(a)  

	
disclosure is permissible if required by government or court order, provided the'party required to disclose first gives the other prior written notice to enable it to seek a protective order, if otherwise required by law, if required to enforce rights under this Patent Agreement; and to the extent reasonably necessary, on a confidential basis, to its accountants, attorneys, financial advisors, its present or future providers of venture capital and/or potential investors in or acquirers of such party;

	
(b)  

	
each party may use similar terms and conditions in other agreements; and

	
(c)  

	
each party may disclose only the scope of the licenses and immunities granted hereunder (but not any financial terms) to the extent reasonably necessary, on a confidential basis, to its customers, potential customers, and other third parties with which it has a current or potential commercial relationship.

 

6.12 This Agreement and any amendments hereto may be signed in one or more counterparts, each of which, when signed and delivered, shall be deemed to be an original. All such counterparts together shall constitute one and the same valid and binding agreement, even if all of the parties have not signed the same counterpart. Signatures to this Agreement may be delivered by facsimile, in which case the facsimile copy of an original signature shall be deemed to be an original signature.

 

This Patent Agreement embodies the entire understanding of the parties with respect to the Licensed Patents, and replaces any prior oral or written communications between them.

 

 

6

 

 

 

 

 

	Agreed to:	 	 	Agreed to:	 
	NEXX SYSTEMS, INC.	 	 	INTERNATIONAL BUSINESS	 
	 	 	 	MACHINES CORPORATION	 
	 	 	 	 	 
	 	 	 	 	 
	
By:  /s/  Stanley Piekos

	 	 	
By:  /s/  Mark S. Petersen

	 
	 	 	 	 	 
	
Name: Stanley D. Pietos

	 	 	
Name: Marks S. Petersen

	 
	 	 	 	 	 
	
Title: CFO

	 	 	
Title: Director of Finance, IP

	 
	 	 	 	 	 
	Date: 2/11/09	 	 	Date: 2/11/09	 

                                                             

                                                                                  

                                                             

 

 

 

 

 

 

 

 

 

 

 

 

7exh10-22_16709.htm

EXHIBIT 10.22

 

[ * ] =Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

Development Agreement

(hereinafter referred to as "Agreement")

 

between

 

Infineon Technologies Austria AG, a corporation duly organized and existing under the

laws of Austria and having offices at Siemensstrasse 2, 9500 Villach, Austria

(hereinafter referred to as "Infineon")

 

and

 

NEXX Systems, Inc., a corporation duly organized and existing under the laws of the United

States, and having offices at 900 Middlesex Turnpike, Building 6, Billerica, MA 01821-3929,

USA

 

(hereinafter referred to as "NEXX")

 

 

 

Preamble

 

WHEREAS, NEXX possesses know-how and expertise with regard to an ECD tool for electroplating deposition processes for applications such as gold and solder wafer bumping, redistribution layers, integrated passives and various MEMS layers;

 

WHEREAS, Infineon is, inter alia, in the business of semiconductor manufacturing technologies, especially [*]

 

WHEREAS, Infineon wishes NEXX to and NEXX is ready to develop [*]

 

 

 

 

[ * ] =Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

Now therefore, the Parties agree to enter into the following Agreement:

 

1.           Definitions

 

	
1.1 

	
"Results of Development" shall mean any and all results of development, whichNEXX shall provide according to Section 2, including the [*], as defined under Section 2 herein below.

 

	
1.2 

	
"DIN" refers to the German Institute for Standardization ("Deutsches Institut fairNormung e. V.") and shall mean the standards developed by it.

 

	
1.3 

	
"Acceptance" shall mean the explicit written acknowledgement of Infineon statingthat the delivered items comply with the terms and conditions agreed upon between the Parties.

 

	
1.4 

	
"Demand for Changes" shall mean a demand of Infineon for changes to requirementsof Annex 1, prior to the Acceptance of the Results of Development.

 

	
1.5 

	
"Affiliated Companies" shall mean any and all legally separate enterprises which, inrelation to each other, are majority owned and majority owning enterprises, dependent and controlling enterprises, members of a group of enterprises, enterprises with cross-shareholdings, or parties to an enterprise agreement. On the part of Infineon Technologies Austria AG, Affiliate shall additionally include Infineon Technologies AG, Mtinchen, Germany and Affiliates of the later.

 

	
1.6 

	
"Intellectual Property Rights" shall mean any and all trademarks, patents, utilitypatents, designs, layout-designs (topographies) of integrated circuits, copyrights and any and all other intellectual property rights. "IPR" shall mean "Intellectual Property Rights".

 

	
1.7 

	
"Background IPR" shall mean all Intellectual Property Rights with respect to thesubject matter of this Agreement pursuant to Section 2 hereafter, which are owned by one Party or any of its Affiliated Companies on the Effective Date.

 

	
1.8 

	
"Development Work" means any and all development work to be performed by theparties for the "Subject Matter of Agreement" in accordance with Section 2.

 

 

 

 

[ * ] =Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

2.   Subject Matter of Agreement

 

NEXX shall carry out the development of especially customized tool features [*] and provide Infineon with the Results of Development for the purpose of Infineon testing and evaluating such Results of Development.

 

3.   Quality Assurance

 

	
3.1 

	
NEXX shall perform any and all development work with qualified personnel. AtInfineon's request, NEXX shall provide evidence of qualification for those employees involved in the development work, even if this Agreement does not stipulate any certain qualification. Employees of NEXX who are designated to work on security-relevant tasks shall be subjected to a security check to be agreed upon by Infineon. At Infineon's reasonable request, NEXX shall replace, at its own costs, the employees who appear to be not qualified.

 

	
3.2 

	
NEXX shall perform any and all development work diligently and using the mostcurrent, state-of-the-art technology. NEXX shall use the methods/processes and tools stipulated in Annex 2 to this Agreement.

 

	
3.3 

	
NEXX shall keep Infineon informed of the progress of its work Infineon shall beentitled to acquire information at any time regarding the progress of the project by inspecting any relevant documents (reports, descriptions, listings, manuals, etc.). At Infineon's request, the documents required to that end must be submitted and explained. NEXX shall provide Infineon with the relevant documents on a [*]

 

 

 

 

[ * ] =Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
3.4 

	
For the purpose of ensuring process and product quality NEXX shall be obliged toestablish and implement such quality management system as set forth in Annex 2 to this Agreement. Infineon shall be entitled to carry out quality audits at NEXX' premises in order to verify that the quality management system actually exists and is being implemented.

 

	
3.5 

	
If disagreements should arise between the Parties regarding the content of technicalterms and symbols, quality requirements, format requirements, or similar issues, the compliance with the DIN standards in effect at the date of the contract shall be deemed to be agreed.

 

4.            Infineon's Duty to Cooperate

 

	
4.1 

	
Infineon shall provide NEXX in a timely manner with all necessary data andinformation or shall provide NEXX with the names of suitable information sources.

 

	
4.2 

	
NEXX shall perform any and all development work on its premises, unless otherwisestipulated in Annex 1 to this Agreement. If NEXX performs development work on the premises of Infineon, NEXX shall solely use the premises, devices and programs which Infineon has assigned to NEXX and solely in the manner specified by Infineon (e.g. the use of passwords), NEXX shall commit its employees in writing to observe the applicable security and order rules of Infineon and shall inform Infineon about the names of the employees who will have access to Infineon's premises in writing and as soon as possible.

 

	
4.3 

	
If NEXX needs specific cooperative efforts from Infineon, it shall demand these inwriting and in a timely manner. To the extent that fixed dates for cooperative efforts have already been set, NEXX shall point out such dates in a timely manner. Infineon will perform all obligations to cooperate under this Agreement at its own costs.

 

	
4.5 

	
Infineon does not assume any liability for the accuracy, sufficiency or suitability of theuse by NEXX of any data or information provided by Infineon. Likewise, Infineon assumes no liability for freedom of access to, or for disruptions of operations at Infineon-owned or for any possible damage resulting from the use thereof. This exclusion of liability does not apply in the event of [*] of Infineon; nor does it apply in the event of tortuous injury to life, body, or health.

 

 

 

 

[ * ] =Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
4.6 

	
This Section 4 comprehensively regulates the sole and exclusive duties of Infineon tocooperate. Infineon has no further obligation to cooperate. Should Infineon not have complied with any of its obligations in the time stipulated herein or any of the Annexes to this agreement, NEXX shall immediately notify Infineon of such delay in writing. If NEXX fails to thus inform Infineon, NEXX shall be excluded from using such circumstance as a defense.

 

5.            Delivery

 

	
5.1 

	
NEXX shall deliver the Results of Development to Infineon in accordance with thespecification and quantity set forth in Annex 1 to this Agreement and in accordance with the binding time and milestone schedule set forth in Annex 3 to this Agreement.

 

	
5.2 

	
Together with the Results of Development, NEXX shall provide Infineon with copiesof all scientific or technical documents including drawings and plans established during the development as well as operating instructions if necessary for proper use and the evaluation of the developed results as well as all prototypes. The documents have to be provided to Infineon in writing and in electronic format. NEXX shall explain the Results of Development orally.

 

	
5.3 

	
NEXX shall perform any and all development work in accordance with the bindingtime and milestone schedule set forth in Annex 3 to this Agreement. NEXX shall inform Infineon without delay in writing if a significant delay of the performance becomes foreseeable.

 

	
5.4 

	
If NEXX is of the opinion that it is hindered from performing this Agreement due tocircumstances of any kind whatsoever, NEXX shall inform Infineon hereof in writing without undue delay. If such hindering circumstances are not attributable to NEXX, the parties shall agree on a reasonable extension of the agreed deadlines. If the parties reach an agreement on a reasonable extension of the agreed deadlines prior to the agreed deadlines, Section 5.3 Sentence 3 shall not apply. If NEXX fails to inform Infineon without undue delay, in writing, NEXX shall be excluded from using the circumstances as a defense.

 

 

 

 

[ * ] =Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
5.5 

	
NEXX shall announce in writing no later than[*] to the readiness of the Results of Development and shall coordinate the delivery date with Infineon. Delivery shall take place at the location named in Annex 3 to this Agreement. Delivery shall be confirmed in writing.

 

6.   Acceptance of the [*]/Completion of the Development Work

 

	
6.1 

	
Acceptance of the Results of Development will be made and governed by Section 5 ofthe specification contained in Annex 1 to this Agreement. Any confirmation of Infineon indicating that certain functionalities have been reached shall not impact performance due under this Agreement and shall not be deemed to be an Acceptance.

 

	
6.2 

	
Infineon will test and evaluate the Results of Development during a period of [*] as from the date of signature of Final Process Start Up Protocol as further specified in Section 5 of the Annex 1 to this Agreement. The Development Work shall be regarded as being completed successfully once the [*] fulfills the specification as per Annex 1 and the Final Acceptance Protocol, as specified in Section 5 of Annex 1 to this Agreement has been mutually signed

 

7.   Remuneration

 

Within [*] after the date of mutual signature of this Development Agreement and agreement on related commercial terms Infineon will issue a corresponding purchase order to NEXX.

 

 

 

 

[ * ] =Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

8.   Demand for Changes

 

	
8.1

	
Infineon is entitled to demand changes, prior to the Acceptance of the Results of Development. NEXX may, in writing, reject Demands for Changes as infeasible, to the extent that they are unacceptable to NEXX due to deficiencies in its performance capabilities; or other valid reasons.

 

	
8.2 

	
In the event and to the extent that the implementation of a Demand for Changes shouldmake it necessary to adjust the timetable, NEXX must notify Infineon accordingly. Within [*] from the date such notification is submitted, the Parties shall come to an agreement regarding changes to this Agreement.

 

9.   Cooperation by the Parties

 

	
9.1

	
NEXX shall follow instructions issued by Infineon under this Agreement insofar as such instructions relate to the subject matter of the performance itself However, Infineon shall not be authorized to issue instructions directly to employees of NEXX.

 

	
9.2 

	
If NEXX is of the opinion that instructions from Infineon issued in accordance withsection 9.1, or other circumstances attributable to Infineon, are creating changed work requirements, NEXX shall inform Infineon hereof, in writing and without delay. The parties shall then agree on a reasonable adjustment of the agreed evaluation period as stipulated in Section 6.2.

 

	
9.3 

	
Should it become clear to NEXX that documents, data, requirements or any otherinformation or instruction of Infineon are deficient, incomplete, ambiguous, or objectively unsuitable for the performance of the contractual obligations, NEXX shall immediately notify Infineon and submit alternative proposals. Infineon shall, without delay, make decisions on potential alterations, which may arise due to such notices regarding the content of Annex 1 to this Agreement.

 

	
9.4 

	
Each party shall designate a project manager who shall be in a position to provideinformation and to either make decisions or cause them to be made. Should a designated project manager leave the company or be unavailable for a long period oftime, the affected Party shall appoint a new project manager in a timely manner. The project managers are empowered to accept all notifications relating to this Agreement.

 

 

 

 

[ * ] =Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
9.5 

	
Each party may at certain intervals convene a project meeting at which the projectmanagers and possibly other employees of Infineon and NEXX should be present. At the project meeting a development status report should be prepared, observance of contractual responsibilities should be reviewed, and continuation of the project should be discussed. A record of the project meeting shall be prepared and signed by both parties to this Agreement.

 

	
9.6 

	
Declarations by each Party should be sent to the following addresses:

 

· Infineon:   Infineon Technologies AG

 

[*]

 

 

 

 

 

 

 

 

·  NEXX:               NEXX Systems Inc.

 

Project Mgr.: Mr. Arthur Keigler,

VP of Technology

900 Middlesex Turnpike, Building 6

Billerica, MA 01821-3929, USA

Tel.: [*]

Cell: [*]

Email: [*]

Fax: [*]

 

Both Parties are obliged, without delay, to notify the other Party of any changes to the addresses and contact numbers listed above.

 

 

 

 

[ * ] =Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

10.   Subcontractors and Assignment to Third Parties

 

	
10.1

	
NEXX may not subcontract its contractual obligations under this Agreement to freelance workers or other third parties (hereinafter referred to as "Subcontractors") without the prior written consent of Infineon. At Infineon's request, NEXX shall procure evidence of any work permit that may be required for foreign workers. Infineon shall be entitled to request from NEXX termination of said subcontracts at any time and without cause, but in particular in case of facts and circumstances attributable to the Subcontractor if such circumstances would entitle Infineon to terminate this Agreement for cause had they occurred in the relationship between Infineon and NEXX.

 

NEXX Systems will have the right to use in house engineering or a contractor subject to the stipulations set forth in Section 10.

 

	
10.2

	
Neither Party may assign this Agreement, delegate its obligations or assign its rights thereunder without the prior written consent of the other Party, which consent will not be unreasonably withheld.

 

	
10.3

	
Notwithstanding the foregoing and without consent of NEXX, Infineon may assign this Agreement, delegate its obligations or assign its rights thereunder to an Affiliated Company of Infineon or to a third party to whom all or substantially all assets of Infineon's business unit performing this Agreement are transferred.

 

11.   Title and Rights

 

	
11.1 

	
Each Party retains title and ownership in and to its Background 1PR.

 

	 	
(a)

	
Infineon hereby grants to NEXX under its Background IPR the non-exclusive,non-transferable, royalty free right to use same during the term of this Agreement for the purpose of carrying out the Development Work. This right includes the right to have such Background IPR used by a subcontractor;

 

	 	
(b)

	
NEXX hereby grants to Infineon under its Background IPR the non-exclusive, non-transferable, royalty free right to use same during the term of this Agreement for the purposes set forth in the subsequent sub-paragraphs 11.2 through 11.7.

 

	
11.2              (a) 

	
The Results of Development shall be and remain the sole and exclusive property of Infineon, subject to the license grant set forth herein. The Parties agree that any results being general enhancements of the Tool Platform shall be and remain the sole and exclusive property of NEXX. Infineon shall have a [*] license to use or have used such general enhancements of the Tool Platform for the purpose of using the Results of Development within the scope as provided for by this Agreement. NEXX shall have [*] option to license the Results of Development pursuant to a License Agreement to be negotiated between the Parties, provided however, that such option shall not be executed before expiry of a period of [*] as from the date of acceptance of the [*] pursuant to section 6. With Infineon's explicit consent, such consent not to be unreasonably withheld, NEXX may execute its foregoing option at any time before expiry of the option period. In case of NEXX executing the afore­mentioned option the Parties agree to base their negotiations on the following rights and obligations:

[*]

 

	
(b)  

	
The parties agree to use [*] efforts to enter into a commercially reasonable license agreement on the terms set forth above. If the parties are unable to complete and execute a license agreement within [*] after written notice from NEXX, then the parties agree to resolve any discrepancies before a single third party mediator selected by the parties within [*] of such notice after the end of such [*] period. Such mediation shall be held and completed within [*] of the notice by NEXX requesting such mediation.

 

 

 

 

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11.3

	
If protectable inventions or ideas are contained in the Results of Development, Infineon shall, at its sole discretion, be entitled to apply for and register any Intellectual Property Rights thereto in any country in its own name and the Parties shall agree upon the details of such registration and maintenance in a Purchase Agreement.

 

	
11.4

	
NEXX shall ensure in contracts with its employees that the rights per Sections 11.1 to 11.3 above are enjoyed by Infineon exclusively (unless otherwise noted in Sections 11.1 to 11.3) and without time limit, and also that they are not affected by termination of the contracts between NEXX and its employees. NEXX will claim the inventions of its employees without restraints. It is the sole duty of NEXX to pay its employees any compensation, which might be necessary, if applicable, with respect to the rights to which Infineon is entitled to under Section 11.1 through Section 11.3.

 

	
11.5

	
NEXX shall not utilize the Results of Development or parts thereof for other developments or further developments unless Infineon provides its prior written approval, such approval not to be unreasonably withheld.

 

	
11.6

	
NEXX shall ensure and warrants that the Results of Development do not violate any rights of any third parties.

 

	
11.7

	
In case the Parties will not have entered into a Purchase Agreement within a period of [*] after mutual signature of the Final Acceptance Protocol (as defined in Section 5 of the specification contained in Annex 1) NEXX shall have a [*] license to use and have used the Results of Development in any manner it deems suitable provided however, that any use under Infineon's Background IPR, any information, data and know-how of Infineon embodied in the Results of Development would require a prior written license agreement between the Parties.

 

 

 

 

[ * ] =Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

12.   Warranty and Liability

 

	
12.1

	
Any warranties to be given in the framework of the Parties' cooperation regarding the subject matter according to Section 2 of this Agreement shall be finally stipulated in the Purchase Agreement.

 

	
12.2

	
Any liability of a party with respect to death or injury to any person is subject to and governed by the provisions of the applicable law. Neither party is, however, obliged to compensate for death or personal injury or loss of or damage to property of the other party to the extent such death, injury, loss or damage is covered by insurance(s) of the affected party and such affected party shall not be entitled to recover same from the first party.

 

	
12.3

	
Neither party shall be liable for any indirect or consequential damages of the other party, including loss of profit or interest, under any legal cause whatsoever and on account of whatsoever reason, except where such liability is mandatory by applicable law.

 

13.   Confidentiality, Data Protection and Non-Competition Clause

 

	
13.1

	
NEXX shall treat as confidential its work and the know-how and experience, documents, tasks, business developments, and other information that it acquires from Infineon in the context of this Agreement, as well as the conclusion of this Agreement and the Results of Development, and shall not make them available to third parties other than those mentioned in Section 10.1 and 10.2 for as long as they have not become publicly known or Infineon has not given its prior written approval for such disclosure in an individual ease, and shall use such information only for the purpose intended by this Agreement.

 

	
13.2

	
Documents and other tools provided or created by Infineon may be utilized only for implementation of this Agreement, may be copied or reproduced only for NEXX' own use, and may not be made available to third parties. They shall be returned to Infineon of NEXX' own accord, including any copies thereof, following the termination of this Agreement. Infineon may require a corresponding declaration of completeness.

 

 

 

 

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13.3

	
To the extent it is not necessary for NEXX' performance of this Agreement, NEXX shall not, without Infineon's written consent, be authorized to copy, reproduce, or furnish to any third parties Infineon data accessible to NEXX.

 

	
13.4

	
To the extent NEXX must process personal data during its work on the subject matter of this Agreement, it shall observe data protection laws, arrange data security measures with Infineon, and enable Infineon to acquire information regarding compliance with such arrangements.

 

	
13.5

	
NEXX shall impose an obligation corresponding to Sections 13.1 to 13.4 upon those of its employees who are involved in performing this Agreement and on third parties involved in performing this Agreement. At Infineon's demand, NEXX shall be obliged to provide corresponding written proof of such obligation from all persons involved.

 

	
13.6

	
The rights and responsibilities arising in Section 13.1 to 13.5 shall continue in force beyond the term of this Agreement.

 

14.          Termination

 

	
14.1

	
Infineon and NEXX shall have the right to terminate this Agreement by giving [*] In case of any termination under this Section 14.1 Sentence 1, Section 11.7 shall apply mutatis mutandis.

 

	
14.2

	
The right to terminate this Agreement for cause shall remain unaffected. Each Party may terminate this Agreement for cause, if, among other items, the other Party (a) becomes insolvent, (b) is the subject to any proceedings seeking relief, reorganization, receivership or rearrangement under any laws relating to insolvency, (c) makes an assignment for the benefit of creditors, or (d) begins the liquidation, dissolution or winding up of its business. Infineon is also entitled to terminate this Agreement for cause, if Infineon has material doubts that NEXX can achieve the development goal of

 

 

 

 

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this Agreement. In addition, Infineon may terminate this Agreement for cause, if, among other items: (a) NEXX comes under direct or indirect control or direction of any other entity competing with Infineon; (b) NEXX fails to perform development work for a period of [*] (c) NEXX fails to provide Infineon with an acceptable progress report within a [*] (d) NEXX fails to deliver to Infineon any deliverable set forth in the Schedule within [*] of Infineon's written notice to NEXX, of NEXX' failure to deliver in accordance with the schedule; or (e) NEXX is late on its delivery of deliverables set forth in the Schedule by [*]

 

	
14.3

	
In case of termination pursuant to Section 14.2 hereinbefore, Infineon shall have the right to decide at its own free discretion, whether it wants to

 

	
(a)    

	
keep all Results of Development including all relating prototypes and documents created pursuant to this Agreement regardless of the state of processing they are in at the time of termination that it has up to the time of termination acquired pursuant to Section 11 hereinbefore, in which case NEXX shall hand over to Infineon all such Results of Development as well as all documents and information in its possession with respect thereto;

 

	
(b)    

	
renounce all rights to the Results of Development that it has up to the time of termination acquired pursuant to Section 11 hereinbefore, in which case Section 11.7 shall apply mutatis mutandis.

 

15.          Dispute Resolution and Applicable Law

 

	
15.1

	
Any and all disputes arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination, shall be settled finally and through binding arbitration under the Rules of the International Chamber of Commerce, ICC, Paris (hereinafter referred to as "Rules"), by one arbitrator up to an amount of one million Euro and by three arbitrators beyond an amount of one million Euro, in accordance with the Rules. Arbitration shall take place in Zurich, Switzerland; the procedural law of that jurisdiction shall apply where the Rules are silent. The language to be used in the arbitration proceeding shall be English.

 

 

 

 

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15.2

	
This Agreement shall be subject to the substantive law in force in Switzerland without reference to its conflict of law provisions. The application of the United Nations Convention on Contracts for the International Sale of Goods of April 11, 1980 shall be excluded.

 

	
15.3

	
Nothing contained herein shall be construed and the Parties hereby waive any and all rights they may have to claim or assert, that Infineon is subject to the jurisdiction of the courts of the USA.

 

16.          Miscellaneous

 

	
16.1

	
Changes and amendments to this Agreement must be made in writing in order to be valid. Ancillary agreements made orally are invalid. This also applies to revocation of this provision.

 

	
16.2

	
General terms and conditions of NEXX shall not be applicable, even if Infineon has not explicitly objected to them.

 

	
16.3

	
Should any provision of this Agreement be invalid, the validity of the remaining provisions shall remain unaffected. In such case, the respective provision shall be replaced by a valid one approximating as closely as possible the economic purpose of the invalid provision.

 

	
16.4 

	
The Annexes to this Agreement are an integral part of this Agreement.

 

	
16.5

	
NEXX and Infineon shall each receive a copy of this Agreement signed by both Parties.

 

 

 

 

 

 

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Villach, date:

	 	
date:Sep. 24, 2008

	 	 	 
	
Infineon Technologies AG

	 	
NEXX Systems, Inc.

	 	 	 
	  	 	
/s/ Richard Post

	  	 	
CEO

 

 

Annexes:

 

Annex 1: Tool and Process Specification

 

Annex 2: Quality Assurance

 

Annex 3: Time Schedule/Milestones/Place of Delivery

 

Annex 4: Non-Disclosure-Agreements

 

   4.1: NDA Nexx Systems, Inc., USA — Infineon Technologies AG, Germany

 

4.2: NDA Teltec GmbH, Germany — Infineon Technologies AG, Germany

 

4.3: NDA Teltec GmbH, Germany — Infineon Technologies AG, Germany

 

 

 

 

[ * ] =Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

 

ANNEX 1 to Development Agreement between NEXX Systems. Inc. and Infineon Technologies

 

Infineon Technologies Austria AG

 

Tool and Process Specification

 

[*]

 

by and between

 

NEXX Systems, Inc., USA

(hereinafter referred to as `NEXX")

 

and

 

Infineon Technologies Austria AG, Austria

(hereinafter referred to as "IFX")

 

 

 [*]

Specification acceptance:

 

	
Infineon Technologies AG, Germany

	  	
Nexx Systems, Inc., USA

	 	 	 
	
/s/ Michael Melrl

	  	
/s/ David Volfson

	
Name: Michael Melrl

	  	
Product Manager

	 	 	 
	
18/09/09

	  	
9-12-09

	
Date

	  	  

 

 

 

 

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ANNEX 2 to Development Agreement between NEXX Systems, Inc. and Infineon Technologies Austria AG dated July 28th, 2008

 

 

	  	
PRODUCT QUALITY POLICY

Document CD-QU-1003

Revision A.2 – July 30, 2008

 

	
NEXX Product Quality Policy

Deliver on time quality products that

meet customer expectations.

Management Responsibility

Quality Policy

NEXX’s Quality Policy is to "Deliver on time quality products that meet customer expectations."  NEXX's management with executive responsibility has defined and documented this policy for quality so that it is relevant to NEXX's organizational goals and the expectations and needs of our customers.  NEXX supervisors are responsible for ensuring that this policy is understood at all levels of the organization.  All NEXX employees are responsible for implementing and maintaining this policy at all levels of the organization.  One of the ways in which NEXX monitors its performance of the Quality Policy is via metrics, which measure, for example, on-time delivery of product to our customers and the rate of return of nonconforming product from customers.

Organization:  Responsibility and Authority

The responsibility, authority, and the interrelation of personnel who manage, perform, and verify work that affects quality is defined and documented in this Quality Manual as well as in procedures and work instructions.  This is the case particularly for personnel who need the organizational freedom and authority to:

	
a)

	
initiate action to prevent the occurrence of any nonconformities relating to product, process, and quality system;

	
b)

	
identify and record any problems relating to the product, process, and quality system;

	
c)

	
initiate, recommend, or provide solutions through designated channels;

	
d)

	
verify the implementation of solutions;

	
e)

	
control further processing, delivery, or installation of nonconforming product until the deficiency or unsatisfactory condition has been corrected.

 

 

 

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Organization:  Resources

NEXX identifies resource requirements and provides adequate resources, including the assignment of trained personnel, for management, performance of work, and verification activities including internal quality audits.

Organization:  Management Representative

NEXX's management with executive responsibility has appointed a member of NEXX's own management who, irrespective of other responsibilities, has defined authority for

 

	
a)

	
ensuring that a quality system is established, implemented, and maintained in accordance with the requirements of our customers.

 

	
b)

	
reporting on the performance of the quality system to NEXX's management for review and as a basis for improvement of the quality system.

Management Review

NEXX's management with executive responsibility reviews the quality system at defined intervals sufficient to ensure its continuing suitability and effectiveness in satisfying the requirements of our customers and NEXX's stated quality policy and objectives.

 

 

 

 

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Annex 3:

 

[*]

The successful completion of the above listed milestone deliverables is subject to due fulfillment of all stipulations set forth in the Development Agreement dated July 28th, 2008 and corresponding “Tool and Process Specification” (Annex 1).

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