Document:

EXHIBIT 10.120

 

GUARANTEE AGREEMENT

 

REGARDING

 

10 MILLION US$ CREDIT FACILITY

 

                This
Agreement is made as of May 6, 1997 by and between Southwall Technologies Inc.,
a Delaware corporation whose principal business offices are at 1029 Corporation
Way, Palo Alto, California 94303 (hereinafter called "Southwall")

 

and

 

                Teijin
Limited, a Japanese corporation whose registered office is at 6-7,
Minami-honmachi 1-chome, Chuo-ku, Osaka 541, Japan (hereinafter called
"Teijin").

 

WITNESSETH:

 

                WHEREAS,
Southwall wishes to obtain a loan facility amounting to Ten Million US Dollars
(US$10,000,000, hereinafter called the "LOAN") from The Sanwa Bank,
Limited, San Francisco Branch at 444 Market Street, 18th Floor, San Francisco,
CA 94111 (hereinafter called "LENDER") and Southwall requests that
TEIJIN provide LENDER with a letter of guarantee (hereinafter called
"L/G") as an inducement to LENDER to extend a LOAN to Southwall;

 

                WHEREAS,
Teijin is, on the above request from Southwall, willing to issue a L/G to
LENDER;

 

                NOW
THEREFORE, the parties hereto have agreed as follows:

 

ARTICLE 1. LOAN FACILITY

 

                The
summary of the LOAN extended to Southwall by LENDER is described below:

 

 

 

 

 

	
   

  	
  (1)

  	
   

  	
  Date of Credit Agreement
  by and between Southwall and LENDER:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  May 6, 1997

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (2)

  	
   

  	
  Principal amount:
  US$10,000,000.00

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (3)

  	
   

  	
  First Draw-Down Date: May
  6, 1997, for US$5,000,000.00

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Second Draw-Down Date:
  November 6, 1997, for the balance of the principal amount

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (4)

  	
   

  	
  Grace period: Four (4)
  years after the First Draw-Down Date. During this period, Southwall shall
  make semi-annual, interest-only payments.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (5)

  	
   

  	
  Repayments: Eight (8)
  semi-annual equivalent principal repayments, plus accrued interest starting
  forty-eight (48) months after the First Draw-Down Date.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (6)

  	
   

  	
  Interest rate: The LIBOR
  Rate, as defined in the Credit Agreement between LENDER and Southwall, plus
  0.4375%.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (7)

  	
   

  	
  Prepayment: Southwall may
  have the right to prepay this LOAN in full or in part, subject to the terms
  of the Credit Agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (8)

  	
   

  	
  Kind of assurance: L/G
  issued by Teijin

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

ARTICLE 2. 
L/G & RISK BEARING COMMISSION

 

	
  2.1

  	
   

  	
  Teijin hereby agrees to
  submit the L/G to LENDER on the condition that Southwall pays Teijin a risk
  bearing commission as a Guarantee Fee (hereinafter called "Guarantee
  Fee") at the rate of 0.5625% per year on the outstanding amount of the
  principal amount of the LOAN.

  
	
   

  	
   

  	
   

  
	
  2.2

  	
   

  	
  The Guarantee Fee shall be
  paid in arrears on each Interest Payment Date for the Period commencing
  either on and including the date of the 

  

 

2

 

	
   

  	
   

  	
  First Draw-Down, or on and
  including the immediately preceding Interest Payment Date up to and including
  the date immediately preceding such relevant Interest Payment Date.

  
	
   

  	
   

  	
   

  
	
  2.3

  	
   

  	
  The Guarantee Fee shall
  accrue daily and shall be computed on the basis of a year of three hundred
  and sixty (360) days and the actual number of days elapsed.

  
	
   

  
	
  ARTICLE 3.  PAYMENT

  
	
   

  
	
  3.1

  	
   

  	
  Guarantee Fee shall be
  made by wire transfer by Southwall to Teijin in US Dollars to Teijin's account
  No. 403-401 with The Sanwa Bank, Limited, Osaka Head Office.

  
	
   

  	
   

  	
   

  
	
  3.2

  	
   

  	
  Any taxes, charges, or
  other expenses with respect to each Guarantee Fee payment made to Teijin by
  Southwall shall be borne by Southwall. Nevertheless, Southwall may deduct
  withholding tax duly levied on Guarantee Fee payments to the extent that a
  tax credit will be obtained by such party under the convention for the
  avoidance of double taxation between the governments of U.S.A. and Japan.
  Southwall shall secure for Teijin a tax receipt acceptable to Japanese tax
  authorities for the said tax purpose and send it to Teijin within thirty (30)
  days after such payment.

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4.  FINANCIAL COVENANTS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  During the term of the
  LOAN, Southwall shall maintain the following financial covenants, as measured
  on a quarterly basis as of the last day of each fiscal quarter of Southwall
  from financial data publicly reported in Southwall's Form 10-Q and Form 10-K
  Reports filed with the Securities and Exchange Commission, or from supporting
  data for such reports:

  

 

	
   

  	
  (1)

  	
   

  	
  Minimum Quick Ratio:   1.00 to 1.00

  

 

3

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Minimum Quick Ration is
  defined as Cash and Equivalents plus Short Term Investments plus Accounts
  Receivables to Total Current Liabilities.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (2)

  	
   

  	
  Minimum Tangible Net
  Worth:  $24,000,000 and to increase
  annually by 50% of annual Net After Tax Profits, such increases to be
  cumulative. Southwall shall remain profitable in each fiscal year.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Tangible Net Worth is
  defined as Stockholders Equity plus Subordinated Debt minus Intangible Assets
  (including Goodwill, Patents and Licenses).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Net After Tax Profits is
  defined as Net Operating Income minus recorded Tax Provision for the period,
  excluding any extraordinary adjustments due to changes in accounting rules as
  provided by the Financial Accounting Standard Board or for recording of Net
  Operating Loss Carryforward or other tax assets or liabilities relating to
  prior year results or activities.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (3)

  	
   

  	
  Maximum Debt to Tangible
  Net Worth ratio: 0.65 to 1.00

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Debt is defined as Total
  Liabilities minus Subordinated Debt.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Southwall shall provide to
  Teijin with a quarterly certificate, signed by a responsible officer of
  Southwall, together with a copy of the current quarter's Form 10-Q Report, as
  early as reasonably possible but no later than sixty (60) days following the
  last day of the fiscal quarter, or following the end of Southwall's fiscal
  fourth quarter, a copy of the Form 10-K Report, as early as reasonably
  possible but no later than one hundred and twenty (120) days following the
  last day of the fiscal quarter.

  

 

4

 

	
  ARTICLE 5. DEFAULT

  	 

	
   

  	
   

  	 

	
  5.1

  	
   

  	
  In the event of any actual
  or expected default by Southwall in any payment of principal or interest on
  the LOAN or of any actual or expected default by Southwall in any financial
  covenants in ARTICLE 4, Southwall shall immediately give a written notice of
  such actual or expected default to Teijin. Such notice shall include detailed
  information on the LOAN including the payment amount and due date for the
  payment which is or may become in default. After receiving such notice, the
  parties hereto shall call a meeting and discuss the concerned matter.

  
	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  If Teijin shall make a
  payment when due of any amount demanded by LENDER under L/G, then Teijin
  shall have the right to exercise any right of reimbursement, indemnity or
  subrogation against Southwall.

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6.  OFFER OF COLLATERAL SECURITY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In order to secure the
  repayment obligation of Southwall to Teijin referred to in paragraph 5.2,
  Southwall shall execute and deliver to Teijin a Reimbursement and Security
  Agreement substantially in the form of Exhibit A attached hereto.

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7.  VALIDITY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This Agreement shall come
  into effect on the day when signed by the parties hereto.

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8. MISCELLANEOUS

  	 

	
   

  	
   

  	
   

  	 

	
  8.1

  	
   

  	
  This Agreement shall be
  interpreted and construed in accordance with the laws of Japan.

  	 

					

 

5

 

	
  8.2

  	
   

  	
  All disputes or
  controversies concerning the interpretation or construction of this Agreement
  shall be settled amicably by the parties hereto. In the event the parties
  cannot reach an amicable settlement, arbitration under paragraph 13.6 of the
  Basic Agreement dated April 9, 1997 between Southwall and Teijin shall be the
  final settlement.

  
	
   

  	
   

  	
   

  
	
  8.3

  	
   

  	
  This Agreement shall not
  be assigned without the prior written consent of the other party hereto.

  
	
   

  	
   

  	
   

  
	
  8.4

  	
   

  	
  This Agreement shall be
  amended only by a written instrument signed by duly authorized
  representatives of both parties hereto.

  

 

                IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and signed in their respective names by their duly authorized representatives
as of the date and year first above written.

 

 

 

	
   

  	
  FOR SOUTHWALL TECHNOLOGIES
  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ L. Ray Christie

  
	
   

  	
  Name:

  	
   

  	
  L. Ray Christie

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Vice President, Chief
  Financial Officer, and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FOR TEIJIN LIMITED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Shosaku Yasui

  
	
   

  	
  Name:

  	
   

  	
  Shosaku Yasui

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Senior Managing Director

  
	
   

  	
   

  	
   

  	
  Member of the Board

  

 

6

 

Exhibit A

 

REIMBURSEMENT AND SECURITY AGREEMENT

 

                This REIMBURSEMENT AND SECURITY AGREEMENT, dated as
of May 6, 1997 (this “Agreement”), is made by SOUTHWALL TECHNOLOGIES, INC., a
Delaware corporation (the “Grantor”), and TEIJIN LIMITED, a Japanese
corporation, as secured party (the “Secured Party”).

 

                PRELIMINARY STATEMENTS:

 

                (1)           The
Secured Party has entered into that certain Guarantee Agreement Regarding 10
Million US$ Credit Facility, dated as of the date hereof (said agreement, as it
may hereafter be amended or otherwise modified from time to time, the “Guaranty
Agreement”; the terms defined therein and not otherwise defined herein are used
herein as therein defined), under which the Secured Party has agreed to provide
LENDER with a letter of guarantee (the “Letter of Guarantee”) as an inducement
to extend a LOAN to the Grantor.

 

                (2)           It
is a condition precedent to the making of the guarantee by the Secured Party
under the Guaranty Agreement that the Grantor shall have agreed to the
reimbursement and security interest contemplated by this Agreement.

 

                NOW, THEREFORE, in consideration of the premises and
in order to induce the Secured Party to make the guarantee under the Guaranty
Agreement, the Grantor hereby agrees with the Secured Party as follows.

 

                SECTION 1. Reimbursement; Assignment and Grant of
Security Interest.

 

                (a)           The
Grantor hereby agrees to reimburse the Secured Party on demand for and in the
amount of any payment made by the Secured Party to LENDER under the Letter of
Guarantee. All payments made by the Grantor under this Agreement shall be made
by the Grantor free and clear of and without deduction for any and all present
and future taxes, levies, charges, deductions and withholdings, excluding, in
the case of the Secured Party, any of the foregoing imposed on or measured by
its net income or gross receipts by the jurisdiction (or any political
subdivision thereof) under the laws of which the Secured Party is organized or
maintains a lending office (“Taxes”). To the extent applicable law requires a
deduction or withholding for Taxes, then the gross amount of such payment made
by the Grantor shall be increased at the Grantor’s sole cost and expense such
that the net payment to the Secured Party or its assignee equals that amount
which the Secured Party or its assignee would have received if such deduction
or withholding were not made. In addition, the Grantor shall pay upon demand
any stamp or other taxes, levies or charges of any jurisdiction with respect to
the execution, delivery, registration, performance and enforcement of this
Agreement.

 

 

Upon request by the Secured
Party,  the Grantor shall furnish
evidence satisfactory to the Secured Party that all requisite authorizations
and approvals by, and notices to and filings with, governmental authorities and
regulatory bodies have been obtained and made and that all requisite taxes,
levies and charges have been paid. Any amounts payable by the Grantor to the
Secured Party hereunder not paid upon demand shall bear interest at an annual
rate equal to the six (6) months LIBOR rate established by BBA at the time of
non-payment plus five percent (5%).

 

                (b)           The
Grantor hereby assigns to the Secured Party for its benefit, and hereby grants
to the Secured Party for its benefit a security interest in, all of the
Grantor’s right, title and interest in and to Grantor’s property set forth on
Exhibit A attached hereto (the “Collateral”), andall proceeds of any and all of
the foregoing Collateral. The list of Collateral may be amended from time to
time by mutual agreement of the parties; provided, however, that the Secured
Party shall have no obligation to agree to the amendment of the list of
Collateral if it believes that such amendment would impair the security
interest in the Grantor’s property created hereunder.

 

                SECTION 2. Security for Obligations. This Agreement
secures the payment of all obligations of the Grantor now or hereafter existing
under the Guaranty Agreement and under this Agreement (all such obligations
being the “Obligations”).

 

                SECTION 3. 
Representations, Warranties and Covenants.  The Grantor represents and warrants as follows.

 

                (a)           The
Grantor is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware; the Grantor has the lawful power to
own its properties and to engage in the businesses it conducts, and is duly
qualified and in good standing as a foreign corporation in the jurisdictions
wherein the failure to so qualify would have a material adverse effect on the
Grantor or its business or prospects.

 

                (b)           The
Grantor is not in default with respect to any of its existing indebtedness, and
the making and performance of this Agreement will not (immediately or with the
passage of time, the giving of notice, or both):

 

                                (i)            violate
the  articles of  incorporation,  by-laws or other organizational of the Grantor or violate any
laws or result in a default under any contract, agreement, or instrument to
which the Grantor is a party or by which the Grantor or any of its property is
bound; or

 

                                (ii)           result
in the creation or imposition of any security interest in, or lien or
encumbrance upon, any of the assets of the Grantor, other than in favor of the
Secured Party.

 

 

2

 

 

                (c)           The
Grantor has the power and authority to enter into and perform this Agreement
and to incur the obligations herein provided for, and has taken all actions
necessary to authorize the execution, delivery, and performance of this
Agreement.

 

                (d)           This
Agreement is valid, binding, and enforceable in accordance with its terms.

 

                (e)           The
chief place of business and chief executive office of the Grantor and the
office where the Grantor keeps its records concerning the Collateral, are
located at 1029 Corporation Way, Palo Alto, California 94303.

 

                (f)            The
Grantor is, or as soon as practicable following the Closing will be, the legal
and beneficial owner of the Collateral free and clear of any lien, security
interest, option or other charge or encumbrance except for the security
interest created by this Agreement and Permitted Liens. No effective financing
statement or other document similar in effect covering all or any part of the
Collateral is on file in any recording office, except such as may have been
filed in favor of the Secured Party relating to this Agreement and Permitted
Liens. As used herein, “Permitted Liens” means (i) liens to secure taxes,
assessments or charges not yet due or which are being contested in good faith
and by appropriate proceedings and for which adequate reserves are maintained;
(ii) carriers’, mechanics’, warehousemen’s artisans’, repairmen’s or similar
liens arising in the ordinary course of business which are not overdue or which
are being contested in good faith and by appropriate proceedings and for which adequate
reserves are maintained; and (iii) liens and encumbrances which (A) existed on
property acquired by the Grantor before the time of its acquisition and was not
created in anticipation of such event, or (B) were taken or retained by the
seller of such property to secure all or part of its price or created solely
for the purpose of securing indebtedness representing, or incurred to finance
or refinance the cost of such property; provided that no such Lien shall extend
to or cover any property of the Grantor other than the property so acquired and
improvements on such property.

 

                (g)           This
Agreement creates a valid and perfected first priority security interest in the
Collateral (other than with respect to Permitted Liens given priority as a
matter of law), securing the payment of the Obligations, and all filings and
other actions necessary or desirable to perfect and protect such security
interest have been duly taken.

 

                (h)           No
consent of any other person or entity and no authorization, approval or other
action by, and no notice to or filing with, any governmental authority or
regulatory body is required (i) for the grant by the Grantor of the assignment
and security interest granted hereby or for the execution, delivery or
performance of this Agreement by the Grantor, (ii) for the perfection or
maintenance of the assignment and security interest created hereby (including
the first priority nature of such assignment and security interest) or (iii)
except as required by applicable law, for the exercise by the Secured Party of
its rights and remedies hereunder.

 

 

3

 

 

                (i)            There
are no conditions precedent to the effectiveness of this Agreement that have
not been satisfied or waived.

 

                (j)            Grantor
shall pay Secured Party a risk bearing commission as a Guarantee Fee
(hereinafter called “Guarantee Fee”) at the rate of 0.5625% per year on the
outstanding amount of the principal amount of the LOAN, as specified in the
Guaranty Agreement.

 

                (k)           The
Guarantee Fee shall be paid by Grantor in arrears on each Interest Payment Date
(as such term is defined in the Guaranty Agreement) for the period commencing
either on and including the date of the First Draw-Down, or on and including
the immediately preceding Interest Payment Date up to and including the date
immediately preceding such relevant Interest Payment Date, as specified in the
Guaranty Agreement.

 

                (l)            The
Guarantee Fee shall accrue daily and shall be computed on the basis of a year
of three hundred and sixty (360) days and the actual number of days elapsed.

 

                (m)          Guarantee
Fee payments shall be made by wire transfer by Grantor to Secured Party in US
Dollars to Secured Party’s Account No. 403-401 with The Sanwa Bank, Limited,
Osaka Head Office.

 

                (n)           Any
taxes, charges, or other expenses with respect to each Guarantee Fee payment
made to Secured Party by Grantor shall be borne by Grantor. Nevertheless,
Grantor may deduct withholding tax duly levied on Guarantee Fee payments to the
extent that a tax credit will be obtained by such party under the convention
for the avoidance of double taxation between the governments of U.S.A. and
Japan. Grantor shall secure for Secured Party a tax receipt acceptable to
Japanese tax authorities for said tax purpose and will send it to Secured Party
within thirty (30) days after such payment.

 

                (o)           During
the term of the LOAN, as specified in the Guaranty Agreement, Grantor shall
maintain the following financial covenants, as measured on a quarterly basis as
of the last day of each fiscal quarter of Grantor from financial data publicly
reported in Grantor’s Form 10-Q and Form 10-K Reports filed with the Securities
and Exchange Commission, or from supporting data for such reports:

 

(1)           Minimum Quick Ratio: 1.00 to 1.00

 

Minimum
Quick Ratio is defined as Cash and Equivalents plus Short Term Investments plus
Accounts Receivables to Total Current Liabilities.

 

(2)           Minimum Tangible Net Worth:
$24,000,000 and to increase annually by 50% of 

annual Net After Tax Profits, such increases to be cumulative. Grantor shall
remain profitable in each fiscal year.

 

 

4

 

 

Tangible
Net Worth is defined as Stockholders 
Equity plus Subordinated Debt minus Intangible Assets (including
Goodwill, Patents and Licenses).

 

Net
After Tax Profits is defined as Net Operating Income minus recorded Tax
Provision for the period, excluding any extraordinary adjustments due to
changes in accounting rules as provided by the Financial Accounting Standard
Board or for recording of Net Operating Loss Carryforward or other tax assets
or liabilities relating to prior year results or activities.

 

Maximum
Debt to Tangible Net Worth ratio: 0.65 to 1.00

 

Debt is
defined as Total Liabilities minus Subordinated Debt.

 

Grantor
shall provide to Secured Party a quarterly certificate, signed by a responsible
officer of Grantor, together with a copy of the current quarter’s Form 10-Q
Report as early as reasonably possible but no later than sixty (60) days
following the last day of the fiscal quarter, or following the end of Grantor’s
fiscal fourth quarter, a copy of the Form 10-K Report, as early as reasonably
possible but no later than one hundred and twenty (120) days following the last
day of the fiscal quarter.

 

                (p)           In
the event of any actual or expected default by Grantor in any payment of
principal or interest on the LOAN or of any actual or expected default by
Grantor in any financial covenants in Section 3(o), Grantor shall immediately
give a written notice of such actual or expected default to Secured Party. Such
notice shall include detailed information on the LOAN including the payment
amount and due date for the payment which is or may become in default.

 

                SECTION 4. Further Assurances.

 

                (a)           The
Grantor agrees that from time to time, at the expense of the Grantor, the
Grantor will promptly execute and deliver all further instruments and
documents, and take all further action, that may be necessary or desirable, or
that the Secured Party may reasonably request, in order to perfect and protect
the assignment and security interest granted or purported to be granted hereby
or to enable the Secured Party to exercise and enforce its rights and remedies
hereunder with respect to any Collateral. Without limiting the generality of
the foregoing, the Grantor will: (i) if any Collateral shall be evidenced by a
promissory note or other instrument or chattel paper, promptly notify the
Secured Party thereof and, if requested, deliver and pledge to the Secured
Party hereunder such note or instrument or chattel paper duly endorsed and
accompanied by duly executed instruments of transfer or assignment, all inform
and substance reasonably satisfactory to the Secured Party; (ii) execute and
file such financing or continuation statements, or amendments thereto, and such
other instruments or notices, as may be necessary or desirable, or as the
Secured Party may

 

 

5

 

 

reasonably request, in order to
perfect and preserve the assignment and security interest granted or purported
to be granted hereby; and (iii) mark conspicuously any Collateral and, at the
request of the Secured Party, each of its records pertaining to the Collateral
with a legend, in form and substance reasonably satisfactory to the Secured
Party, indicating that such Collateral is subject to the assignment and
security interest granted pursuant hereto.

 

                (b)           The
Grantor hereby authorizes the Secured Party to file one or more financing or
continuation statements, and amendments thereto, relating to all or any part of
the Collateral without the signature of the Grantor where permitted by law. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Collateral or any party thereof shall be sufficient as a financing
statement where permitted by law.

 

                (c)           During
the term of the LOAN, as specified in the GuarantyAgreement, the amount of
Grantor’s inventory, consisting of raw materials, work-in-process and finished
goods (“Inventory”), that shall constitute a part of the Collateral will at all
times be an amount equal to the difference between 120% of the principal and
accrued interest then owing under the LOAN and the net value (defined as the
purchase price for the equipment less accumulated depreciation calculated at the
rate of 10% per annum) of the equipment and machinery that constitutes a part
of the Collateral. The Secured Party agrees that its security interest in
Inventory shall be limited to Inventory having a value equal to the amount
described in the preceding sentence. The Grantor acknowledges that, upon the
occurrence of a Default, the Secured Party intends to look to the components of
the Inventory in the following order of priority: finished goods,
work-in-process and raw materials.

 

                (d)           The
Secured Party agrees to execute such agreements and documents that may be
reasonably necessary to confirm the scope of its interest in the Inventory upon
the reasonable request of Grantor.

 

                SECTION 5. Place of Perfection; Records. The Grantor
shall keep its chief place of business and chief executive offices and the
offices where it keeps its records concerning the Collateral, and the original
copies of all chattel paper or other documents or instruments that evidence the
Collateral at the locations therefor specified in Section 3(e) or, upon 30
days’ prior written notice to the Secured Party, at any other locations in a
jurisdiction where all action required by Section 4 shall have been taken with
respect to the Collateral. The Grantor will hold and preserve such records, and
such chattel paper, documents and instruments and will permit representatives
of the Secured Party at any time during normal business hours and upon
reasonable notice to inspect and make abstracts from such records, chattel
paper, documents and instruments.

 

                SECTION 6. As to the Collateral.

 

                (a)           The
Grantor shall at its expense:

 

 

 

6

 

 

                                (i)            properly
maintain the Collateral and take all such action to such end as may be from
time to time reasonably requested by the Secured Party; and

 

                                (ii)           furnish
to the Secured Party promptly upon receipt thereof copies of all notices,
requests and other documents received by the Grantor relating to the
Collateral, and from time to time (A) furnish to the Secured Party such
information and reports regarding the Collateral as the Secured Party may
reasonably request and (B) upon request of the Secured Party make to any other
party such demands and requests for information and reports or for action as
the Grantor is entitled to make, respecting the Collateral.

 

                (b)           The
Grantor shall not:

 

                                (i)            sell,
assign (by operation of law or otherwise) or otherwise dispose of, or grant any
option with respect to, any of the Collateral (other than a proposed sale or
other disposition of obsolete or worn-out equipment, in which events Grantor
shall provide Secured Party with thirty (30) days advanced written notice), or
create or permit to exist any lien, security interest, option or other charge
or encumbrance upon or with respect to any of the Collateral, except for the
assignment and security interest under by this Agreement or Permitted Liens; or

 

                                (ii)           take
any other action in connection with the Collateral which would impair the value
thereof or the interest or rights of the Grantor therein or which would impair
the interest or rights of the Secured Party therein.

 

                SECTION 7. Secured Party Appointed Attorney-in-Fact.
The Grantor hereby appoints the Secured Party the Grantor’s attorney-in-fact,
with full authority in the place and stead of the Grantor and in the name of
the Grantor or otherwise, from time to time, after the Secured Party has
notified the Grantor of a Default under this Agreement and for so long as any
such Default exists, in the Secured Party’s discretion to take any action and
to execute any instrument which the Secured Party may deem necessary or
advisable to accomplish the purposes of this Agreement, including, without
limitation:

 

                                (i)            to
ask, demand, collect, sue for, recover, compromise, receive and give acquitance
and receipts for moneys due and to become due under or in connection with the
Collateral;

 

                                (ii)           to
receive, endorse and collect any drafts or other instruments, documents and
chattel paper in connection therewith; and

 

                                (iii)          to
file any claims or take any action or institute any proceedings which the
Secured Party may deem necessary or desirable to enforce the rights of the
Secured Party with respect to any of the Collateral.

 

                SECTION 8. Secured Party May Perform. If the Grantor
fails to perform any agreement contained herein after having a reasonable
opportunity therefor, the Secured Party may itself perform, or cause
performance of, such agreement, and the

 

 

 

7

 

 

expenses of the Secured Party incurred
in connection therewith shall be payable by the Grantor under Section 11(b).

 

                SECTION 9. The Secured Party’s Duties. The powers
conferred on the Secured Party hereunder are solely to protect its interest in
the Collateral and shall not impose any duty upon it to exercise any such
powers. Except for the safe custody of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Secured Party
shall have no duty as to any Collateral or as to the taking of any necessary
steps to preserve rights against any parties or any other rights pertaining to
any Collateral. The Secured Party shall be deemed to have exercised reasonable
care in the custody and preservation of any Collateral in its possession if
such Collateral is accorded treatment substantially equal to that which the
Secured Party accords its own property.

 

                SECTION 10. Remedies. If after five (5) days’ written
notice the Grantor fails to reimburse or pay any amounts due to the Secured
Party under Section 1(a) of this Agreement, or if the Grantor fails to observe
or perform any other material term of this Agreement which continues unremedied
for a period of thirty (30) days after written notice thereof (each a
“Default”):

 

                (a)           The
Secured Party may exercise any and all legal or equitable rights and remedies
of the Grantor in connection with or in respect of the Collateral in any court
or other tribunal of proper jurisdiction; the Grantor and the Secured Party
acknowledge and agree that the remedies of the Secured Party under this
Agreement are not subject to the arbitration provisions set forth in Section
8.2 of the Guaranty Agreement;

 

                (b)           All
payments received by the Grantor in connection or in respect of the Collateral
shall be received in trust for the benefit of the Secured Party, shall be
segregated from other funds of the Grantor and shall be forthwith paid over to
the Secured Party in the same form as so received (with any necessary
endorsement);

 

                (c)           All
payments made under or in connection with or in respect of the Collateral, and
all cash proceeds in respect of any sale of, collection from, or other
realization upon all or any part of the Collateral, received by the Secured
Party may, in the discretion of the Secured Party, beheld by the Secured Party
as collateral for, and/or then or at any time thereafter applied (after payment
of any amounts payable to the Secured Party pursuant to Section 11) in whole or
in part by the Secured Party against, all or any part of the Obligations in
such order as the Secured Party shall elect. Any surplus of such payments or
cash proceeds held by the Secured Party and remaining after payment in full of
all the Obligations shall be paid over to the Grantor or to whomsoever may be
lawfully entitled to receive such surplus; and

 

                (d)           The
Secured Party may exercise in respect of the Collateral, in addition to other
rights and remedies provided for herein or otherwise available to it, all the
rights and remedies of a secured party on default under the Uniform Commercial
Code in

 

 

 

8

 

 

 

effect in the State of
California, at that time (the “Code”) (whether or not the Code applies to the
affected Collateral).

 

                SECTION 11. Indemnity and Expenses; Payments.

 

                (a)           The
Grantor agrees to indemnify the Secured Party from and against any and all
claims, losses and liabilities (including reasonable attorneys' fees) growing
out of or resulting from this Agreement (including, without limitation,
enforcement of this Agreement), except claims, losses or liabilities resulting
from the Secured Party’s gross negligence or willful misconduct.

 

                (b)           The
Grantor will upon demand pay to the Secured Party the amount of any and all
reasonable out-of-pocket expenses, including the reasonable fees and expenses
of its counsel and of any experts and agents, which the Secured Party may incur
in connection with (i) the administration of this Agreement, (ii) the custody
or preservation of, or the sale of, collection from or other realization upon,
any of the Collateral, (iii) the exercise or enforcement of any of the rights
of the Secured Party hereunder or (iv) the failure by the Grantor to perform or
observe any of the provisions hereof.

 

                SECTION 12. Amendments; etc. No amendment or waiver
of any provision of this Agreement, and no consent to any departure by the
Grantor here from shall in any event be effective unless the same shall be in
writing and signed by the Secured Party, and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given.

 

                SECTION 
13.  Addresses  for 
Notices.  All  notices and other communications provided
for hereunder shall be in writing (including telecopier, telegraphic, telex or
cable communication) and mailed, telecopied, telegraphed, telexed, cabled or
delivered to it, if to the Grantor, at its address at 1029 Corporation Way,
Palo Alto, California 94303, Attention: Chief Executive Officer, Facsimile
415/967-8713, and if to the Secured Party, at its address at 1-1, Uchisaiwaicho
2-Chome, Chiyoda-ku, Tokyo 100, Japan, Attention: General Manager, Films
Planning and Administration Dept., Facsimile 011-81-3-3506-4378, or, as to
either party, at such other address as shall be designated by such party in a
written notice to the other party. All such notices and other communications
shall be effective, if sent via facsimile, upon confirmation via telephone of
receipt of transmission in legible form, if sent via air courier express
delivery, upon the third business day after deposit for delivery with an
international air courier service, if sent via telegraph, telex or cable, when
delivered to the telegraph company, confirmed by telex answerback or delivered
to the cable company, respectively, or if mailed, upon the first business day
of the recipient that is after the tenth day after the date deposited into the
U.S. or Japanese mail, or if delivered, upon delivery.

 

                SECTION 14. Continuing Assignment and Security
Interest; Assignments Under Credit Agreement. This Agreement shall create a
continuing assignment of and

 

 

 

9

 

 

security interest in the
Collateral and shall (i) remain in full force and effect until the later of
(X), the payment in full of the Obligations and all other amounts payable under
this Agreement and (Y) the expiration or termination of the Guaranty Agreement,
(ii) be binding upon the Grantor, its successors and assigns, and (iii) inure,
together with the rights and remedies of the Secured Party hereunder, to the
benefit of the Secured Party and its successors, transferees and assigns.
Without limiting the generality of the foregoing clause (iii), if the Secured
Party assigns or otherwise transfers all or any portion of its rights and
obligations under the Guaranty Agreement to any other person or entity, such
other person or entity shall thereupon become vested with all the benefits in
respect hereof granted to the Secured Party herein or otherwise. Upon the later
of the payment in full of the Obligations and all other amounts payable under
this Agreement and the expiration or termination of the Guaranty Agreement, the
security interest granted hereby shall terminate and all rights to the
Collateral shall revert to the Grantor. Upon any such termination, the Secured
Party will, at the Grantor’s expense, execute and deliver to the Grantor such
documents as the Grantor shall reasonably request to evidence such termination.

 

                SECTION 15. Governing Law; Terms. This Agreement
shall be governed by and construed in accordance with the laws of the State of
California, except to the extent that the validity or perfection of the
assignment and security interest hereunder, or remedies hereunder, in respect
of any particular Collateral are governed by the laws of a jurisdiction other
than the State of California. Unless otherwise defined herein, terms used in
Division 9 of the Uniform Commercial Code in effect in the State of California
are used herein as therein defined.

 

                SECTION 16. Waiver of Jury Trial. THE GRANTOR AND
SECURED PARTY BOTH HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY
RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN),
OR ACTIONS OF THE GRANTOR AND SECURED PARTY.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

 

10

 

 

                IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and delivered by their respective officers
thereunto duly authorized as of the date first above written.

 

	
   

  	
  SOUTHWALL TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ L. Ray Christie

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  L. Ray Christie

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President, Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  TEIJIN LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Shasaku Yasui

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Shasaku Yasui

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Managing Director

  
	
   

  	
   

  	
  Member of the Board

  

 

 

 

11

 

 

EXHIBIT A

 

1.             Inventory in an amount as described in Section 4(c).

 

2.             The following equipment and
machinery located at the Southwall Technologies, Inc. facility at 8175 S. Hardy
Street, Tempe, Arizona 85284:

 

	
  ITEMS

  
	
   

  
	
  Custom Designed and
  Fabricated High Vacuum Planar Magnetron Sputter Roll Coating System, known as
  PM5

  
	
   

  
	
  15 Planar Magnetron Sputter
  Sources with Supported Fixed Flange, Gas Inlets, Electrical Feedthrough,
  Water Cooling Connections, Backing Plates and Power Adaption Modules, for use
  with PM5

  
	
   

  
	
  Power Generation System for
  use with PM5

  
	
   

  
	
  Vacuum Deposition Machine,
  known as PM6

  
	
   

  
	
  Power Generation System for
  use with PM6

  
	
   

  
	
  Trane Chiller RTHB-150 460 A,
  Process Chilling System

  
	
   

  
	
  Water Cooled Dual Zone
  Chiller/Heater, Process Chilling System

  
	
   

  
	
  Resistance Monitoring
  Equipment; Non-contact Resistance Monitoring

  
	
   

  
	
  Solvent Based Tandem Coating
  Line

  
	
   

  
	
  5500 SCFM Catalytic System
  with Allen-Bradley SLC502 PLC networked to coating line

  
	
   

  
	
  610 Slitter/Rewinder

  
	
   

  
	
  Toray Sheeting MachineQuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

EXHIBIT 10.1    
  

 
 

SETTLEMENT AGREEMENT    
  

        THIS SETTLEMENT AGREEMENT (the "Agreement") is entered into among Fischer Imaging Corporation ("Fischer"), a Delaware corporation, on the one hand, and Thermo
Electron Corporation ("Thermo") and Trex Medical Corporation ("Trex"), each a Delaware corporation, on the other hand, effective as of the last date of signature below (the "Effective Date"). 

 
 

Recitals    
  

	1.
	In
1992, Fischer sued Lorad Corporation for alleged infringement of United States Patent No. 5,078,142 (the "142 Patent") in the United States District Court for the District of
Colorado in Civil Action No. 92-MK-619, and Lorad Corporation filed counterclaims for a declaratory judgment as well as other claims, which counterclaims (except for the
claim for declaratory judgment) were separated from Civil Action No. 92-MK-619 into Civil Action No. 93-MK-1588, also pending in the
United States District Court for the District of Colorado. The parent corporation of Trex later acquired Lorad Corporation, and the assets and business of Lorad were subsequently contributed to Trex
and became an unincorporated division within Trex. In 1998, Fischer sued Trex for alleged infringement of United States Patent No. 5,735,264 (the "264 Patent") in the United States District
Court for the District of Colorado in Civil Action 98-MK-772. Therein, Trex filed counterclaims for a declaratory judgment as well as for antitrust and other claims. The Court
separated all counterclaims (except the claim for a declaratory judgment) asserted by Trex, and consolidated these claims with those pending in Civil Action
No. 93-MK-1588 (such action, together with any and all counterclaims associated therewith, the "Trex/Fischer Antitrust Action"). The Court then consolidated Civil Action
92-MK-619 for all purposes with Civil Action 98-MK-772 (such action, together with any and all counterclaims associated therewith, the "Fischer/Trex
Action").

	2.
	In
2000, Trex sold assets of its Lorad business ("Lorad") to Hologic, Inc. ("Hologic"), a Delaware corporation, pursuant to the Asset Purchase and Sale Agreement among Trex
Medical Systems Corporation, Trex Medical Corporation, Thermotrex Corporation, Thermo Electron Corporation and Hologic, Inc. dated August 13, 2000 (the "Trex/Hologic Agreement"), which,
under Article VI, contains indemnity provisions concerning litigation or potential litigation involving Fischer.

	3.
	In
November 2001, Fischer sued Hologic for alleged infringement of the "264 Patent in the United States District Court for the District of Massachusetts, Civil Action
No. 01-11943 WGY (such action, together with any and all counterclaims associated therewith, the "Fischer/Hologic Action").

	4.
	Fischer
has also filed an action in Germany before the District Court of Duesseldorf for infringement of the German Part enumerated DE 692 31 238 T1 of European Patent No. 0 625
024, which action is styled Fischer Imaging Corporation, Denver, USA vs. MMS Medicor Medical Supplies GmbH, Kerpen, Germany, and Lorad, Inc., Danbury,
USA, court file number 4 0 4199/01 (such action, together with any and all counterclaims associated therewith, the "German Action"), and Fischer has filed an action in France
before the Tribunal de Grande Instance de Paris (Paris Court of First Instance) under No. RG 01/19791 for infringement of the French Part (such French translation having been submitted to the Institut
National de la Propriété Industrielle, as indicated in the Bulletin Officiel de la Propriété Industrielle No. 49, dated
December 8, 2000) of European Patent No. 0 625 024, which action is styled Fischer Imaging Corp. v. Hologic, Inc., Lorad, Inc., Hologic S. A.,
Stephanix S. A., and Trophy Radiologie S. A. (such action, together with any and all counterclaims associated therewith, the "French Action"). 

1 of 13

 
	5.
	Hologic
has filed a Nichtigkeitsklage (nullity complaint) before the Federal Patent Court in Munich, Germany, styled Hologic Inc., Bedford, USA vs
Fischer Imaging Corporation, Inc. Denver, USA, court file No. 4 Ni 7/02 (EU), against the German Part enumerated DE 692 31 238 of European Patent No. 0 625
024 (such action, together with any and all counterclaims associated therewith, the "Hologic Opposition Action").

	6.
	The
parties desire, inter alia, to settle the Fischer/Trex Action, the Trex/Fischer Antitrust Action, the Fischer/Hologic Action, the
German Action, the French Action and the Hologic Opposition Action (collectively, the "Litigation"). In view of the foregoing, and without admitting the validity of any assertion, contention or
defense made in the Litigation, the Parties have agreed to settle the Litigation on the terms set forth herein. 

 
 

Agreement    
  

        In consideration of the mutual promises, covenants, payments and releases contemplated herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Fischer on the one hand and Thermo and Trex on the other hereby agree as follows: 

 
 

Article I
  Definitions

	1.01
	"Actions
and Claims" shall mean any and all actions, causes of action, suits, claims, rights, liabilities, demands, damages, losses, costs and expenses, of every kind and nature
whatsoever, in law or in equity, negligent or intentional, known or unknown, fixed or contingent, accrued or not accrued, foreseen or unforeseen, matured or not matured.

	1.02
	"Affiliate"
shall mean any entity that is controlled by, controls or is under common control with another entity. "Control" for these purposes shall mean (a) in the case of
corporate entities, direct or indirect ownership of at least 50% of the stock or shares having the right to vote for the election of directors, and (b) in the case of non-corporate
entities, direct or indirect ownership of at least 50% of the equity interest with the power to direct the management and policies of such entity.

	1.03
	"Fischer
Parties" shall mean any or all of the Fischer Released Parties and the Fischer Third Party Releasees.

	1.04
	"Fischer
Released Parties" shall mean any or all of (a) Fischer, (b) the current, former and future Affiliates of Fischer, (c) the successors and assigns of the
entities and individuals described in clauses (a) and (b) of this Section 1.04, and (d) the officers, directors and employees of the entities and individuals described in
clauses (a), (b) and (c) of this Section 1.04.

	1.05
	"Fischer
Third Party Releasees" shall mean any or all of (a) the distributors, customers, agents, licensees and contract manufacturers of the Fischer Released Parties,
(b) the current, former and future Affiliates of the entities and individuals described in clause (a) of this Section 1.05, (c) the successors and assigns of the entities
and individuals described in clauses (a) and (b) of this Section 1.05, and (d) the officers, directors and employees of the entities and individuals described in clauses
(a), (b) and (c) of this Section 1.05.

	1.06
	"Hologic
Released Parties" shall mean any or all of (a) Hologic, (b) the distributors, customers, agents, licensees and contract manufacturers of Hologic,
(c) the current, former and future Affiliates of the entities and persons described in clauses (a) and (b) of this Section 1.06, (c) the successors and assigns of
the entities and individuals described in clauses (a), (b) and (c) of this Section 1.06, and (e) the officers,
directors and employees of the entities and individuals described in clauses (a), (b), (c) and (d) of this Section 1.06. 

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	1.07
	"Licensed
Non-U.S. Patents" shall mean European Patent No. 0 625 024 and all Parts thereof, including but not limited to the German Part (enumerated DE 692 31 238)
and the French Part (as described in paragraph 5 above), any other non-U.S. counterparts of the Licensed U.S. Patents, and any reissues, extensions, continuations, divisions,
foreign counterparts or continuations in part thereof, and any other patent claiming priority to the applications resulting in the "142 Patent, the "264 Patent, United States Patent
No. 5,240,011, United States Patent No. 5,415,169, United States Patent No. 5,803,912 or United States Patent No. 6,022,325.

	1.08
	"Licensed
Patents" shall mean all of the Licensed U.S. Patents and Licensed Non-U.S. Patents. "Licensed Patent" shall mean any one of the Licensed U.S. Patents or the
Licensed Non-U.S. Patents.

	1.09
	"Licensed
U.S. Patents" shall mean the "142 Patent, the "264 Patent, United States Patent No. 5,240,011, United States Patent No. 5,415,169, United States Patent
No. 5,803,912, United States Patent No. 6,022,325, any reissues, extensions, continuations, divisions or continuations in part thereof, and any other patent claiming priority under 35
U.S.C. §119 or 120 to the applications resulting in the "142 Patent, the "264 Patent, United States Patent No. 5,240,011, United States Patent No. 5,415,169, United States
Patent No.5,803,912 or United States Patent No. 6,022,325.

	1.10
	"Parties"
or "parties" shall refer exclusively to Fischer, Thermo and Trex, and expressly does not include Hologic.

	1.11
	"Table
Product(s)" shall mean the prone stereotactic breast biopsy table manufactured, sold or offered for sale by Trex on or before the date of the Trex/Hologic Agreement, as such
table may be or has been enhanced or improved from time to time by or on behalf of Hologic, so long as such table as so enhanced or improved is not alleged by Fischer in good faith to infringe on any
claims of the Licensed U.S. Patents which were not infringed upon by such table as manufactured by Trex on or before August 13, 2000, or any claims of foreign counterparts of the Licensed U.S.
Patents whose corresponding U.S. claims, if any, are not alleged to be infringed upon by such table as manufactured by Trex on or before August 13, 2000, provided that in any such case such
table is manufactured, offered for sale or sold only for the uses offered by Trex on or before August 13, 2000.

	1.12
	"Thermo
Parties" shall mean any or all of the Thermo Released Parties and the Thermo Third Party Releasees.

	1.13
	"Thermo
Released Parties" shall mean any or all of (a) Trex and Thermo, (b) the current, former and future Affiliates of Trex and Thermo, (c) the successors and
assigns of the entities and individuals described in clauses (a) and (b) of this Section 1.13, and (d) the officers, directors and employees of the entities and individuals
described in clauses (a), (b) and (c) of this Section 1.13.

	1.14
	"Thermo
Third Party Releasees" shall mean any or all of (a) the distributors, customers, agents, licensees and contract manufacturers of the Thermo Released Parties,
(b) the current, former and future Affiliates of the entities and individuals described in clause (a) of this Section 1.14, (c) the successors and assigns of the entities
and individuals described in clauses (a) and (b) of this Section 1.14, and (d) the officers, directors and employees of the entities and individuals described in clauses
(a), (b) and (c) of this Section 1.14. 

 
 

Article II
  Mutual Releases and Covenants Not to Sue Between the Parties

	2.01
	Mutual
Releases. 

3 of 13

 

        (a)  Fischer
hereby releases each of the Thermo Released Parties, and Trex and Thermo each hereby release each of the Fischer Released Parties, from any and all Actions and
Claims, including but not limited to those relating or pertaining to or concerning: any of the Licensed Patents; the sale, offer for sale, use, manufacture or import by or on behalf of any of the
Thermo Parties of the StereoGuide product or any other stereotactic breast biopsy table or component thereof; the alleged infringement by any of the Thermo Parties of any of the Licensed Patents;
Fischer's alleged patent misuse (including any potential antitrust violations) regarding the Licensed Patents; any claim that was or could have been brought by any party in the Litigation; and any
claim that could have been brought by Fischer against any of the Thermo Parties in connection with the transactions contemplated by the Trex/Hologic Agreement. 

        (b)  Fischer
hereby releases each of the Thermo Third Party Releasees, and Trex and Thermo each hereby release each of the Fischer Third Party Releasees, from any and all
Actions and Claims relating or pertaining to or concerning: any of the Licensed Patents; the sale, offer for sale, use, manufacture or import by or on behalf of any of the Thermo Parties of the
StereoGuide product or any other stereotactic breast biopsy table or component thereof; the alleged infringement by any of the Thermo Parties of any of the Licensed Patents; Fischer's alleged patent
misuse (including any potential antitrust violations) regarding the Licensed Patents; any claim that was or could have been brought by any party in the Litigation; and any claim that could have been
brought by Fischer against any of the Thermo Parties in connection with the transactions contemplated by the Trex/Hologic Agreement. 

        (c)  The
various releases provided in this Section 2.01 are given in consideration of one another and the other consideration provided for herein. These releases shall
not apply to any Action or Claim based on performance or lack of performance under this Agreement. 

	2.02
	Covenants
Not to Sue. 

        (a)  Fischer
agrees to and does hereby covenant not to sue or take any other action, including without limitation any action or proceeding before any administrative agency,
domestic or foreign, against any of the Thermo Parties on any and all Actions or Claims relating or pertaining to or concerning: any of the Licensed Patents; the sale, offer for sale, use, manufacture
or import of the StereoGuide product or any other stereotactic breast biopsy table or component thereof; the alleged infringement of any of the Licensed Patents; any claim that was or could have been
brought by any party in the Litigation; and any claim that could have been brought by Fischer against any of the Thermo Parties in connection with the transactions contemplated by the Trex/Hologic
Agreement. Fischer shall ensure that any person or entity (a "Transferee") to whom Fischer or any Fischer Released Party sells, transfers, assigns or licenses any Licensed Patent(s) or any rights
therein that would enable such Transferee to bring a suit for infringement of such Licensed Patent(s) agrees, as a condition to such sale, transfer, assignment or license, to be bound by the covenants
contained in this Section 2.02(a), and requires the same of any subsequent transferee of such rights. 

        (b)  Each
of Trex and Thermo agrees to and does hereby covenant not to sue or take any other action, including without limitation any action or proceeding before any
administrative agency, domestic or foreign, against any of the Fischer Parties on any and all Actions or Claims relating or pertaining to or concerning: any of the Licensed Patents; the sale, offer
for sale, use, manufacture or import of the StereoGuide product or any other stereotactic breast biopsy table or component thereof; the alleged infringement of any of the Licensed Patents; Fischer's
alleged patent misuse (including any potential antitrust violations) regarding the Licensed Patents; any claim that was or could have been brought by any party in the Litigation; and any claim that
could have been brought by Fischer against any of the Thermo Parties in connection with the transactions contemplated by the Trex/Hologic Agreement. 

4 of 13

 

        2.03 Dismissal.
The Fischer/Trex Action and the Trex/Fischer Antitrust Action shall be dismissed with prejudice with each party bearing its own costs, and the Parties hereby
direct their respective attorneys to execute and file a Stipulation of Dismissal with Prejudice in each of those Actions in the forms attached hereto as Exhibits A and B within five
(5) business days after the Effective Date, provided that Fischer has received the Immediate Payment (as defined below). The Parties expressly agree to waive their rights to have any produced
documents returned, as set forth in the first sentence of Paragraph 14 of the Stipulated Protective Order, entered in the Fischer/Trex Action on or about June 24, 1992 (and as modified
by the Joint and Stipulated Motion to Amend Stipulated Protective Order, filed on September 25, 1998). Counsel for Trex may, therefore, retain indefinitely any documents and all reproductions
of documents produced in the Fischer/Trex Action or the Trex/Fischer Antitrust Action,
and any such document may be used by such counsel in their capacity as counsel for Hologic in any subsequent litigation between Fischer and Hologic as if it had been produced in that subsequent
litigation. Counsel for Fischer may retain indefinitely any documents and all reproductions of documents produced in the Fischer/Trex Action or the Trex/Fischer Antitrust Action, and any such document
may be used by such counsel in any subsequent litigation between Fischer and Hologic as if it had been produced in that subsequent litigation. The Parties reaffirm all other provisions of the
Stipulated Protective Order, as modified. Fischer and Trex further agree that the Parties will take all reasonable steps to assure that the French Action as to Stephanix S.A. and Trophy Radiologie,
S.A., including all claims and counterclaims, shall be dismissed with prejudice as soon as reasonably possible, except that each of Stephanix S.A. and Trophy Radiologie, S.A. shall be permitted to
dismiss any counterclaims and defenses without prejudice, so that such counterclaims and defenses could be asserted in any future Action or Claim seeking to enforce the Licensed Patents. The Parties
hereto will cooperate to accomplish such dismissal, and to execute any and all documents to effect such dismissal, with all parties assuming their own costs, attorneys' fees and expenses. Fischer
expressly recognizes that Stephanix S. A. is no longer an Affiliate of Thermo and, as such, may refuse to cooperate to accomplish such dismissal. Trex and Thermo hereby agree to exercise such proper
influence, control or authority, if any, as it may have over Stephanix, S.A. to obtain a dismissal of the French Action. Trex and Thermo expressly recognize that Fischer may maintain the French Action
against Stephanix S.A. until Stephanix S.A. agrees to the dismissal of the French Action. 

 
 

Article III
  License, Covenant Not to Sue, and Release Regarding Hologic

        3.01 Condition
Precedent to this Article III. Each of (1) the License granted in Section 3.02, (2) the Release of Section 3.03,
(3) the Covenant not to Sue of Section 3.04, and (4) the agreements and other provisions of Section 3.05 shall not become effective or enforceable until Trex has delivered
to Fischer a Stipulation of Dismissal in the form of Exhibit C executed by Hologic's attorneys as contemplated by Section 3.05 below. 

        3.02 License
Grant to Hologic 

 3.02.01.  Fischer
hereby grants to Hologic under the Licensed U.S. Patents and the Licensed Non-U.S. Patents and for the lives of such patents, a
non-exclusive, irrevocable license to make, have made, use, sell, offer for sale through all channels of distribution and otherwise dispose of Table Products throughout the United States
and the World, including but not limited to import and export of Table Products into and out of the United States and other countries. 

 3.02.02.  No
Right to Sub-license. The license granted in Section 3.02.01 does not include any right to grant any license or sub-license for
any or all of the Licensed U.S. Patents or Licensed Non-U.S. Patents to any other person or entity. 

 3.02.03.  Limited
Right to Transfer. The license granted in Section 3.02.01 above is personal to Hologic, and shall not be assigned or transferred, and does not inure
to the benefit of any of 

5 of 13

 

Hologic's successors or assigns. However, the previous sentence notwithstanding, Hologic may assign the license granted in Section 3.02.01 in conjunction with a merger, sale, or other transfer
of substantially all of Hologic's assets and business. 

  3.02.04  Infringement
Actions Against Third Parties. Fischer does not by the license provided in this Section 3.02 agree to any obligation to institute any action or
suit against any third party for infringement of the Licensed Patents, or to defend any action brought by a third party that challenges or concerns the validity of any of the Licensed Patents. 

 3.02.05.  No
Warranties. Nothing herein shall be construed as a warranty that any Table Product does not infringe patents of persons or entities other than Fischer, and
Fischer has not made any warranties whatsoever regarding merchantability, noninfringement, fitness for a particular purpose, or the suitability for any purpose of the technology embodied in the
Licensed Patents. 

        3.03 Release.
Fischer hereby releases each of the Hologic Released Parties from any and all Actions and Claims that both (a) relate or pertain to or otherwise concern
any Table Product, or any component thereof, and (b) relate or pertain to or otherwise concern any of the Licensed Patents; were or could have
been brought by any party in the Litigation; or could have been brought by Fischer against any of the Hologic Released Parties in connection with the transactions contemplated by the Trex/Hologic
Agreement. 

        3.04 Covenants
Not to Sue. Fischer agrees to and does hereby covenant not to sue or take any other action, including without limitation any action or proceeding before any
administrative agency, domestic or foreign, against any of the Hologic Released Parties on any and all Actions or Claims that both (a) relate or pertain to or otherwise concern any Table
Product, or any component thereof, and (b) relate or pertain to or otherwise concern any of the Licensed Patents; any claim that was or could
have been brought by any party (including any Hologic Released Party) in the Litigation; or any claim that could have been brought by Fischer against any of the Hologic Released Parties in connection
with the transactions contemplated by the Trex/Hologic Agreement. Fischer shall ensure that any Transferee to whom Fischer or any Fischer Released Party sells, transfers, assigns or licenses any
Licensed Patent(s) or any rights therein that would enable such Transferee to bring a suit for infringement of such Licensed Patent(s) agrees, as a condition to such sale, transfer, assignment or
license, to be bound by the covenants contained in this Section 3.04, and requires the same of any subsequent transferee of such rights. 

        3.05 Dismissal.
The Fischer/Hologic Action shall be dismissed with prejudice with each party bearing its own costs, except that Hologic shall be permitted to dismiss any
counterclaims and defenses without prejudice, so that such counterclaims and defenses could be asserted in any future Action or Claim
seeking to enforce the Licensed Patents. The Parties shall direct their respective attorneys to execute and file a Stipulation of Dismissal in such Action in the form attached hereto as
Exhibit C within five (5) business days after the Effective Date, provided that Fischer has received the Immediate Payment (as defined below). Fischer and Trex further agree that the
French Action and the German Action shall be dismissed with prejudice, with all parties assuming their own costs, attorney's fees, and expenses, and that the Hologic Opposition Action shall be
dismissed without prejudice, with all parties assuming their own costs, attorney's fees, and expenses. The Parties hereto will cooperate to accomplish such dismissals, and to execute any and all
documents to effect such dismissals. Fischer expressly recognizes that Stephanix S. A. is no longer an Affiliate of Thermo and, as such, may refuse to cooperate to accomplish such a dismissal of the
French Action. Fischer also expressly recognizes that Medicor Medical Supplies GmbH is not an Affiliate of Thermo and, as such, may refuse to cooperate to accomplish such a dismissal of the German
Action. Trex and Thermo each hereby recognizes that, in the event that Stephanix S.A. refuses to cooperate with Fischer to effect dismissal of the French Action, Fischer may continue to maintain the
French Action against Stephanix S.A. until such time as Stephanix S.A. has agreed to the dismissal of such Action. Trex and Thermo each hereby recognizes 

6 of 13

  

that, in the event that Medicor Medical Supplies GmbH refuses to cooperate with Fischer to effect dismissal of the German Action, Fischer may continue to maintain the German Action against Medicor
Medical Supplies GmbH until such time as Medicor Medical Supplies GmbH has agreed to the dismissal of such Action. 

 
 

Article IV
  Payments by Trex and/or Thermo

        4.01 Amount.
In settlement of the Litigation and in consideration of the releases, covenants, dismissals and other consideration provided for herein, Trex and Thermo hereby
jointly and severally agree and promise to pay to Fischer, in lawful currency of the United States of America, (a) a single payment of twenty-five million dollars ($25,000,000.00)
(the "Immediate Payment") and (b) as royalties for the patent license granted above to Hologic in Section 3.02, subject to the provisions of Section 4.05 below, $7,200,000 in
eight equal installments of nine hundred thousand dollars ($900,000.00) each (each such payment referred to herein as a "Royalty Installment Payment") on the dates and in the manner provided below. 

	4.02
	Delivery
Date. 

	4.02.01	 	The Immediate Payment shall be made in the manner described below in Section 4.03.01 within two business days of the Effective Date. If Fischer does not receive the Immediate Payment within two business days of the
Effective Date, this Agreement shall be null and void and of no further force or effect.
	

4.02.02	
 	

Each Royalty Installment Payment shall be due on April 30th of each year hereafter, with the first Royalty Installment Payment due on April 30, 2003, and the last Royalty Installment Payment due on April 30, 2010.

        4.03 Method.

	4.03.01	 	The Immediate Payment shall be made by wire transfer to an account selected by Fischer, and pursuant to instructions provided by Fischer, no later than the Effective Date, by separate correspondence to the person and
address specified herein for notice.
	

4.03.02	
 	

Each of the Royalty Installment Payments shall be made by wire transfer to the same account specified by Fischer in Section 4.03.01 for receipt of the Immediate Payment, unless Fischer provides other written instructions not less than
15 days prior to the date upon which such Royalty Installment Payment is due. Such written instructions shall be provided according to the provisions for Notice set forth in Section 6.02 below.

        4.04 Attorneys'
Fees, Interest. In the event that Trex and Thermo fail to make any Royalty Installment Payment when due, Fischer shall be entitled to reasonable attorneys'
fees incurred by Fischer to collect payment of any or all of such Royalty Installment Payment. Interest shall accrue on any and all amounts not paid when due hereunder at the rate of twelve percent
(12%) per annum, or, alternatively, should this rate be usurious under applicable law, the maximum rate permitted by applicable law, until paid. 

        4.05 Promise
by Fischer Regarding the Sale of Products to Hologic. If Fischer desires to sell, lease, market, license, distribute or otherwise provide (collectively,
"Distribute") its Mammotest System or derivatives or components thereof, or any other stereotactic breast biopsy table, or derivatives or 

7 of 13

 

components thereof (collectively, "Products"), to Hologic or any of its Affiliates, manufacturers or distributors, or any of their respective successors or assigns, at any time before the anniversary
of the Effective Date occurring in 2010, Fischer shall first provide written notice thereof to Trex and Thermo. Effective upon the earlier of (a) the delivery of such written notice to Trex and
Thermo and (b) six months prior to the first actual Distribution of any Product to Hologic or any of its Affiliates, manufacturers or distributors, Trex and Thermo shall be irrevocably relieved
of any obligation to pay further Royalty Installment Payments hereunder. If Trex or Thermo has made any Royalty Installment Payment to Fischer within the six-month period described in the
preceding sentence, Fischer shall immediately refund such Royalty Installment Payment upon the effectiveness of Thermo and Trex being released of their obligation to make such payment. 

        4.06 Assignability
of Royalty Installment Payments. Subject to all obligations and limitations under this Agreement, including but not limited to Section 4.05 above,
the right of Fischer to receive the Royalty Installment Payments is assignable. Any such assignment shall be made pursuant to an agreement in
form and substance reasonably satisfactory to Thermo and Trex, which agreement shall expressly make reference to the terms of this Agreement. Upon assignment of its rights under this Article IV
to the Royalty Installment Payments, Fischer shall provide written notice to Trex and Thermo of such assignment and the identity of the assignee, and all Royalty Installment Payments due after receipt
of such notice shall be made to Fischer's assignee. 

 
 

Article V
  Indemnification and Other Matters

        5.01 Indemnification. 

  5.01.01  Fischer
agrees to indemnify, defend and hold harmless each of the Thermo Parties from and against any and all losses, damages, claims, demands, suits, obligations
and other liabilities, fines, penalties and expenses (including without limitation costs of investigation, costs of defense, costs of enforcement, amounts paid in settlement, interest, court costs and
reasonable attorneys' fees and expenses) incurred or suffered by or awarded against any of the Thermo Parties and arising out of, relating to or constituting: 

        (a)  any
claim by any of the Hologic Released Parties in connection with this Agreement or the settlement, releases, covenants, dismissals and/or other transactions
contemplated hereby; or 

        (b)  any
claim by any of the Hologic Released Parties, under the Trex/Hologic Agreement or otherwise, based on, arising out of or relating to any claim, proceeding, demand or
lawsuit asserted by or on behalf of any of the Fischer Parties against all or any of the Hologic Released Parties alleging infringement or violation by any of the Hologic Released Parties of any
intellectual property rights (including without limitation rights under patents and trade secrets) of any of the Fischer Parties relating to prone table mammography, stereotactic breast biopsy tables
or components thereof. 

  5.01.02  All
claims for indemnification made under Section 5.01.01 shall be made in accordance with the following procedures, and shall be subject to the following
conditions: 

        (a)  Each
Thermo Party claiming indemnity under this Section 5.01 (a "Claimant") as a result of a claim falling within subsection (a) or (b) of
Section 5.01.01 above and asserted by any of the Hologic Released Parties against it or any other Claimant shall give written notification to Fischer as soon as reasonably possible after
receiving notice of such claim; provided, however, that the failure to give such notice to Fischer shall not relieve Fischer of any liability hereunder except to the extent, if any, it was actually
prejudiced thereby. 

8 of 13

 

        (b)  Within
thirty (30) days after delivery of such notification, Fischer may, upon written notice thereof to the Claimant, assume control of the defense of such claim
with counsel reasonably satisfactory to the Claimant, provided that Fischer acknowledges in writing to the Claimant that any damages, fines, costs or other liabilities that may be assessed against the
Claimant in connection with such claim constitute damages for which the Claimant shall be entitled to indemnification pursuant to this Section 5.01. If Fischer does not assume control of such
defense, the Claimant shall control such defense. If Fischer elects to assume control of the defense, it shall pay the attorneys' fees and other costs and expenses associated with the defense as they
are incurred. If Fischer does not assume control of such defense, it shall reimburse the Claimant for its attorneys' fees and other costs and expenses associated with the defense as they are incurred. 

        (c)  The
Party not controlling such defense may participate therein at its own expense; provided that if Fischer assumes control of such defense and the Claimant reasonably
concludes that Fischer and the Claimant have conflicting interests or different defenses available with respect to such claim, the Claimant shall have the right to engage counsel and to control the
defense with respect to such matters and the reasonable fees and expenses of such counsel shall be considered "damages" for purposes of Section 5.01.01. 

        (d)  The
Party controlling such defense shall keep the other Party advised of the status of such claim and the defense thereof and shall consider in good faith
recommendations made by the other Party with respect thereto. 

        (e)  The
Claimant shall not agree to any settlement of such claim without the prior written consent of Fischer (not to be unreasonably withheld, conditioned or delayed).
Fischer shall not agree to any settlement of such claim that does not include a complete release of the Claimant from all liability with respect thereto or that directly or indirectly imposes any
liability, limitation, restriction or obligation on the Claimant without the prior written consent of the Claimant, which shall not be unreasonably withheld, conditioned or delayed. 

 
 

Article VI
  Miscellaneous

        6.01 Complete
Agreement; Amendment. Each party acknowledges that it has read this Agreement (including all Exhibits), understands it and agrees to be bound by its terms, and
further agrees that it is the complete and exclusive statement of the agreement between the parties that supersedes and merges
all prior proposals, understandings, representations, and all other agreements, oral and written, between the parties, relating to the subject matter hereof. This Agreement may not be modified or
altered except by written instrument duly executed by all Parties. 

        6.02 Notice.
Any notice or communication required or permitted in this Agreement shall be in writing signed by a party's authorized representative and either (1) hand
delivered by a person to the person and address set forth below, (2) sent via a reputable overnight courier service to the person and 

9 of 13

 

address set forth below, or (3) mailed by first class mail, postage prepaid, addressed as follows and by facsimile to the number as follows: 

	To Fischer:	 	Morgan Nields, Executive Chairman

Fischer Imaging Corporation

12300 N. Grant Street

Denver, CO 80241

Facsimile: 303-252-4256
	

With a copy to:	
 	

George G. Matava, Esq.

LeBoeuf, Lamb, Greene & MacRae, LLP

633 Seventeenth Street, Suite 2000

Denver, CO 80202

Facsimile: 303-297-0422
	

To Thermo or Trex:	
 	

Thermo Electron Corporation

81 Wyman Street

Waltham, MA 02454-9046

Attention: General Counsel

Facsimile: 781-622-1283
	

With a copy to:	
 	

Hal J. Leibowitz, Esq.

Hale and Dorr, LLP

60 State Street

Boston, MA 02109

Facsimile: 617-526-5000

All
notices required or permitted under this Agreement shall be deemed to have been received on the earliest of the following: (A) on the date delivered, if by personal delivery; (B) on
the date of signature of a receipt of delivery, if sent by mail and a receipt of delivery is returned; (C) on the first business day
following deposit with a reputable overnight courier service; (D) on the fifth business day following postmarking, if sent by First Class mail, postage prepaid; (E) on the first business
day following the completed, legible facsimile transmission of the notice, if sent by facsimile and the copy required to be mailed under this Section 6.02 was not received; or (F) on the
date of actual receipt if none of the foregoing applies. 

        6.03 Attorneys'
Fees to Prevailing Party. If litigation or other action is commenced between the Parties concerning any dispute arising out of or relating to this Agreement,
the prevailing party in any contested ancillary proceeding relating to the action (e.g., motions to transfer, to compel discovery, etc.) and the prevailing party in the action itself will be entitled,
in addition to any other award that may be made, to recover all court costs and all reasonable expenses associated with the ancillary proceeding or action, including without limitation reasonable
attorneys' fees and expenses. 

        6.04 Governing
Laws. This Agreement, its construction, interpretation, application and performance, shall be governed in all respects by the laws of the Commonwealth of
Massachusetts without reference to choice of law principles. 

        6.05 Severability.
If any provision of this Agreement is invalid under any applicable statute or rule of law, it is to that extent to be deemed omitted and the remainder of
the Agreement shall be valid and enforceable to the maximum extent possible. 

        6.06 Signatures
Required; Three Originals. This Agreement shall not be binding or effective on any party unless and until each of Trex, Thermo and Fischer has executed this
Agreement by having a corporate representative with authority sign below. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which
together shall be deemed to 

10 of 13

 

be one and the same instrument. Each party shall send a facsimile of an executed signature page of this Agreement immediately upon execution to the other parties. Original signature pages shall be
exchanged within two (2) business days after the date of execution. Facsimile signatures shall be considered the same as the originals. 

        6.07 Section
Headings. The article and section headings contained in this Agreement are for reference purposes only and shall not in any way control the meaning or
interpretation of this Agreement. 

        6.08 Intended
Third Party Beneficiaries. It is intended by the parties hereto that each of the Hologic Released Parties, each of the Fischer Parties other than Fischer and
each of the Thermo Parties other than Thermo and Trex is an intended third party beneficiary to this Agreement. Aside from the Hologic Released Parties, the Fischer Parties other than Fischer, and the
Thermo Parties other than Thermo and Trex, there are no intended third party beneficiaries to this Agreement. 

        6.09 Press
Releases. No Party may disclose, publish or cause to be published any press release, or otherwise make any public statement, disclosing the fact of the settlement
contemplated by this Agreement or the terms hereof without the prior written consent of the other Parties, such consent not to be unreasonably withheld, conditioned or delayed. Notwithstanding the
foregoing, any Party may, without the consent of any other Party, make any disclosure required to fulfill its obligations under applicable laws, rules or regulations, including rules and regulations
of the Securities and Exchange Commission and of any applicable securities exchange, provided that, to the extent practical, such Party provides the other Parties with prior notice of the proposed
disclosure and an opportunity to comment thereon. 

        6.10 Fischer
represents and warrants that (i) as of the Effective Date it has the exclusive right to make the covenants and agreements relating to the Licensed
Patents provided for herein, (ii) it has not assigned, sold, transferred or otherwise disposed of any of its rights or interests in the Licensed Patents, and (iii) to the extent approval
of another person or entity is necessary to grant any of the rights set forth in this Agreement, such approval has been obtained. 

        6.11 Trex
and Thermo represent and warrant that they have in their possession a Stipulation of Dismissal in the form of Exhibit C executed by counsel for Hologic. 

        6.12 The
Parties hereto represent and warrant that they possess the full and complete authority to covenant and agree as provided herein, and further represent and warrant
that they have full and complete authority to execute this Agreement. In addition, the individuals executing this Agreement on behalf of the respective Parties represent and warrant that they have
been duly authorized and empowered to execute this Agreement on behalf of their respective entities. 

        6.13 It
is specifically understood that this Agreement may be pleaded as a full and complete defense to, and may be used as the basis for, an injunction against any action,
suit or other proceeding which may be instituted, prosecuted or attempted in breach of this Agreement. 

        6.14 The
Parties acknowledge and agree that this Agreement and its Exhibits are not to be deemed, interpreted, construed, described or referred to by any person as being or
constituting an admission of liability, fault or wrongful conduct of any kind or nature whatsoever on the part of any Party or of any Party's past or present shareholders, directors, officers,
representatives, partners, employees, agents or attorneys. 

        6.15 Assignment.
This Agreement is personal to each of the Parties hereto, and may not be assigned or otherwise transferred without the written consent of each of the other
Parties. The preceding sentence notwithstanding, the Royalty Installment Payments may be assigned subject to Sections 4.05 and 4.06 above, Hologic has the limited right to assign the license granted
in Section 3.02 subject to the restrictions of Section 3.02.03, and this Agreement may be assigned by Fischer in 

11 of 13

 

connection with either the sale of the Licensed Patents or the sale of substantially all of Fischer's assets and business, or by Trex or Thermo in conjunction with the sale or transfer of
substantially all of the assets or business of either Trex or Thermo. 

        [Remainder of page intentionally left blank.]

12 of 13

 

        IN
WITNESS WHEREOF, the Parties have executed or caused this Agreement to be executed by their duly authorized representatives. 

	TREX MEDICAL CORPORATION	 	 
	

By:	
 	

/s/  THEO MELAS-KYRIAZI      
	
 	

 
	

Name:	
 	

Theo Melas-Kyriazi
	
 	

 
	

Title:	
 	
President
 81 Wyman Street

Waltham, MA 02454-9046	
 	

 
	

Date:	
 	

June 7, 2002
	
 	

 
	
THERMO ELECTRON CORPORATION	
 	

 
	

By:	
 	

/s/  THEO MELAS-KYRIAZI      
	
 	

 
	

Name:	
 	

Theo Melas-Kyriazi
	
 	

 
	

Title:	
 	
Vice President
 81 Wyman Street

Waltham, MA 02454-9046	
 	

 
	

Date:	
 	

June 7, 2002
	
 	

 
	
THE UNDERSIGNED HEREBY ENTERS INTO THIS AGREEMENT FOR THE SOLE PURPOSE OF AGREEING TO ITS RIGHTS AND OBLIGATIONS UNDER ARTICLE II HEREOF:
	
TROPHY RADIOLOGIE, S.A.	
 	

 
	

By:	
 	

/s/  THEO MELAS-KYRIAZI      
	
 	

 
	

Name:	
 	

Theo Melas-Kyriazi
	
 	

 
	

Title:	
 	
President
	
 	

 
	

Date:	
 	

June 7, 2002
	
 	

 
	
FISCHER IMAGING CORPORATION	
 	

 
	

By:	
 	

/s/  MORGAN W. NIELDS      
 Morgan Nields, Executive Chairman

12300 M. Grant Street

Denver, Colorado 80241	
 	

 
	

Date:	
 	

June 4, 2002
	
 	

 

13 of 13

 
 

Exhibit A
  
    IN THE UNITED STATES DISTRICT COURT
  FOR THE DISTRICT OF COLORADO    
  

Civil Action No. 92-MK-619

(consolidated with Civil Action No. 98-MK-772)

FISCHER IMAGING CORPORATION,

a Delaware corporation

 Plaintiff,  

v.  

TREX MEDICAL CORPORATION, a Connecticut

corporation, formerly known as Lorad Corporation,

        Defendant.  

 STIPULATED MOTION FOR DISMISSAL OF CLAIMS AND COUNTERCLAIMS

WITH PREJUDICE  

        Pursuant to Fed. R. Civ. P. 41(a)(1)(ii), Plaintiff Fischer Imaging Corporation ("Fischer") and Defendant Trex Medical Corporation ("Trex") hereby stipulate,
subject to the approval of this Court, that all claims and counterclaims in this Civil Action No. 92-MK-619 (consolidated with Civil Action
No. 98-MK-772) are dismissed with prejudice. Each party will bear its own costs and attorney fees. 

        Respectfully
submitted this            day of                        , 2002.

	

	
 	

 
	
George G. Matava

Brian A. Carpenter

Nancy L. Dempsey

LEBOEUF, LAMB, GREENE

& MACRAE LLP

633 Seventeenth Street, Suite 2000

Denver, Colorado 80202

(303) 291-2600	
 	

 
	

Todd P. Blakely

SHERIDAN ROSS P.C.

1560 Broadway, Suite 1200

Denver, Colorado 80202

(303) 863-9700	
 	

 
	

ATTORNEYS FOR PLAINTIFF

FISCHER IMAGING CORPORATION	
 	

 
	

 	
 	

 
	

	
 	

 
	

Gilbert H. Hennessey III

Kurt L. Glitzenstein

FISH & RICHARDSON P.C.

225 Franklin Street

Boston, MA 02110-2840	
 	

 
	

Michael A. Williams, Esq.

MICHAEL A. WILLIAMS, LLC

950 Seventeenth Street, Suite 2450

Denver, Colorado 80202	
 	

 
	

Christopher J. Koenigs

Michael B. Carroll, Esq.

SHERMAN & HOWARD, LLC

950 Seventeenth Street, Suite 2450

Denver, Colorado 80202	
 	

 
	

ATTORNEYS FOR DEFENDANT

TREX MEDICAL CORPORATION
 	
 	

 

 
 

CERTIFICATE OF SERVICE

        The undersigned attorney hereby certifies that a copy of the foregoing STIPULATED MOTION FOR DISMISSAL OF CLAIMS AND COUNTERCLAIMS WITH PREJUDICE was served upon
the party of record listed below, by United States mail, first-class postage prepaid,

this    day of                        , 2002:

	FISH & RICHARDSON P.C.

Gilbert H. Hennessey III

Kurt L. Glitzenstein

225 Franklin Street

Boston, MA 02110-2840	 
	

MICHAEL A. WILLIAMS, LLC

Michael A. Williams, Esq.

950 Seventeenth Street, Suite 2450

Denver, Colorado 80202	

 
	

SHERMAN & HOWARD, LLC

Christopher J. Koenigs

Michael B. Carroll, Esq.

950 Seventeenth Street, Suite 2450

Denver, Colorado 80202	

 
	

LEBOEUF, LAMB, GREENE & MACRAE LLP

George G. Matava

Brian A. Carpenter

Nancy L. Dempsey

633 Seventeenth Street, Suite 2000

Denver, Colorado 80202

(303) 291-2600	

 
	

SHERIDAN ROSS P.C.

Todd P. Blakely

1560 Broadway, Suite 1200

Denver, Colorado 80202

(303) 863-9700	

 
	

 	

 
 

Exhibit B
  
    IN THE UNITED STATES DISTRICT COURT
  FOR THE DISTRICT OF COLORADO    
  

Civil Action No. 93-MK-1588 

FISCHER IMAGING CORPORATION,

a Delaware corporation

 Plaintiff,  

v.  

TREX MEDICAL CORPORATION, a Connecticut

corporation, formerly known as Lorad Corporation,

        Defendant.  

 STIPULATED MOTION FOR DISMISSAL OF CLAIMS AND COUNTERCLAIMS

WITH PREJUDICE  

        Pursuant to Fed. R. Civ. P. 41(a)(1)(ii), Plaintiff Fischer Imaging Corporation ("Fischer") and Defendant Trex Medical Corporation ("Trex") hereby stipulate,
subject to the approval of this Court, that all claims and counterclaims in Civil Action No. 93-MK-1588 are dismissed with prejudice. Each party will bear its own costs
and attorney fees. 

        Respectfully
submitted this            day of                        , 2002.

	

	
 	

 
	
George G. Matava

Brian A. Carpenter

Nancy L. Dempsey

LEBOEUF, LAMB, GREENE

& MACRAE LLP

633 Seventeenth Street, Suite 2000

Denver, Colorado 80202

(303) 291-2600	
 	

 
	

Todd P. Blakely

SHERIDAN ROSS P.C.

1560 Broadway, Suite 1200

Denver, Colorado 80202

(303) 863-9700	
 	

 
	

ATTORNEYS FOR PLAINTIFF

FISCHER IMAGING CORPORATION	
 	

 
	

 	
 	

 
	

	
 	

 
	
Gilbert H. Hennessey III

Kurt L. Glitzenstein

FISH & RICHARDSON P.C.

225 Franklin Street

Boston, MA 02110-2840	
 	

 
	

Michael A. Williams, Esq.

MICHAEL A. WILLIAMS, LLC

950 Seventeenth Street, Suite 2450

Denver, Colorado 80202	
 	

 
	

Christopher J. Koenigs

Michael B. Carroll, Esq.

SHERMAN & HOWARD, LLC

950 Seventeenth Street, Suite 2450

Denver, Colorado 80202	
 	

 
	

ATTORNEYS FOR DEFENDANT

TREX MEDICAL CORPORATION
 	
 	

 

 
 

CERTIFICATE OF SERVICE    
  

        The undersigned attorney hereby certifies that a copy of the foregoing MOTION FOR DISMISSAL OF CLAIMS AND COUNTERCLAIMS WITH PREJUDICE was
served upon the party of record listed below, by United States mail, first-class postage prepaid,

this    day of                        , 2002:

	FISH & RICHARDSON P.C.

Gilbert H. Hennessey III

Kurt L. Glitzenstein

225 Franklin Street

Boston, MA 02110-2840	 
	

MICHAEL A. WILLIAMS, LLC

Michael A. Williams, Esq.

950 Seventeenth Street, Suite 2450

Denver, Colorado 80202	

 
	

SHERMAN & HOWARD, LLC

Christopher J. Koenigs

Michael B. Carroll, Esq.

950 Seventeenth Street, Suite 2450

Denver, Colorado 80202	

 
	

LEBOEUF, LAMB, GREENE & MACRAE LLP

George G. Matava

Brian A. Carpenter

Nancy L. Dempsey

633 Seventeenth Street, Suite 2000

Denver, Colorado 80202

(303) 291-2600	

 
	

SHERIDAN ROSS P.C.

Todd P. Blakely

1560 Broadway, Suite 1200

Denver, Colorado 80202

(303) 863-9700	

 
	 	

 
 

Exhibit C    
  

 
 

IN THE UNITED STATES DISTRICT COURT
  FOR THE DISTRICT OF MASSACHUSETTS    
  

	FISCHER IMAGING CORPORATION,

a Delaware corporation
	

 	

Plaintiff,	

 
	 	

v.	

 	

Civil Action No. 01-11943 WGY
	

HOLOGIC, INC.,

a Delaware corporation,	

 
	

 	

Defendant.	

 

STIPULATED MOTION FOR DISMISSAL OF CLAIMS WITH PREJUDICE AND COUNTERCLAIMS WITHOUT PREJUDICE  

        Pursuant to Fed. R. Civ. P. 41(a)(1)(ii), Plaintiff Fischer Imaging Corporation (AFischer@) and Defendant Hologic, Inc. ("Hologic") hereby stipulate,
subject to the approval of this Court, that Fischer's claims in Civil Action No. 01-11943 WGY are dismissed with prejudice, and that Hologic's defenses and counterclaims in Civil
Action No. 01-11943 WGY are dismissed without prejudice. Each party will bear its own costs and attorney fees. 

        Respectfully
submitted this            day of                        , 2002.

	

	
 	

 
	

Allen C. B. Horsley (B.B.O No. 240440)

Daniel F. Lula (B.B.O No. 647899)

LeBoeuf, Lamb, Greene & MacRae, L.L.P.

260 Franklin Street

Boston, Massachusetts 02110

(617) 439-9500	
 	

 
	

and	
 	

 
	

George G. Matava

Brian A. Carpenter

LeBoeuf, Lamb, Greene & MacRae, L.L.P.

633 17th Street, Suite 2000

Denver, Colorado 80202

303-291-2600	
 	

 
	

ATTORNEYS FOR PLAINTIFF

FISCHER IMAGING CORPORATION	
 	

 
	

 	
 	

 
	

	
 	

 
	

Gilbert H. Hennessey, Esq.

Kurt L. Glitzenstein, Esq.

Fish & Richardson, P.C.

225 Franklin Street

Boston, MA 02110-2804	
 	

 
	

ATTORNEYS FOR DEFENDANT

HOLOGIC, INC.

	
 	

 

 
 

CERTIFICATE OF SERVICE

        The
undersigned attorney hereby certifies that a copy of the foregoing MOTION FOR DISMISSAL OF CLAIMS WITH PREJUDICE AND COUNTERCLAIMS WITHOUT
PREJUDICE was served upon the party of record listed below, by United States mail, first-class postage prepaid, this    day
of                        , 2002: 

	FISH & RICHARDSON P.C.

Gilbert H. Hennessey III

Kurt L. Glitzenstein

225 Franklin Street

Boston, MA 02110-2840	 
	

MICHAEL A. WILLIAMS, LLC

Michael A. Williams, Esq.

950 Seventeenth Street, Suite 2450

Denver, Colorado 80202	

 
	

SHERMAN & HOWARD, LLC

Christopher J. Koenigs

Michael B. Carroll, Esq.

950 Seventeenth Street, Suite 2450

Denver, Colorado 80202	

 
	

LEBOEUF, LAMB, GREENE & MACRAE LLP

George G. Matava

Brian A. Carpenter

Nancy L. Dempsey

633 Seventeenth Street, Suite 2000

Denver, Colorado 80202

(303) 291-2600	

 
	

 	

QuickLinks

EXHIBIT 10.1

SETTLEMENT AGREEMENT

Recitals

Agreement

Article I Definitions

Article II Mutual Releases and Covenants Not to Sue Between the Parties

Article III License, Covenant Not to Sue, and Release Regarding Hologic

Article IV Payments by Trex and/or Thermo

Article V Indemnification and Other Matters

Article VI Miscellaneous

Exhibit A IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

CERTIFICATE OF SERVICE

Exhibit B IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

CERTIFICATE OF SERVICE

Exhibit C

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS

CERTIFICATE OF SERVICE

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