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Delaware
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20-1616267
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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3011 N. First Street
San Jose, California
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95134
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(Address of Principal Executive Offices)
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(Zip Code)
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Large accelerated filer
o
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Accelerated filer
x
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Non-accelerated filer
¨
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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Class
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Outstanding as of April 26, 2013
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Common stock, $0.001 par value
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|
44,684,355
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Page
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March 31, 2013
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December 31, 2012
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||||
ASSETS
|
|
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|
|
|
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Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
79,981
|
|
|
$
|
78,283
|
|
Short-term investments
|
1,001
|
|
|
—
|
|
||
Accounts receivable, net of allowance for doubtful accounts of $170 as of March 31, 2013 and December 31, 2012
|
6,787
|
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7,294
|
|
||
Accounts receivable, due from related parties
|
772
|
|
|
1,036
|
|
||
Inventory, current portion
|
1,625
|
|
|
1,631
|
|
||
Prepaid expenses and other current assets
|
1,399
|
|
|
1,361
|
|
||
Total current assets
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91,565
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89,605
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|
||
Inventory, net of current portion
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4,230
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|
|
3,160
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|
||
Property and equipment, net
|
23,368
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|
24,058
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|
||
Intangible assets, net
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6,836
|
|
|
6,671
|
|
||
Other assets
|
180
|
|
|
191
|
|
||
Total assets
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$
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126,179
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$
|
123,685
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
|
|
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|
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Accounts payable
|
$
|
1,522
|
|
|
$
|
971
|
|
Accrued liabilities
|
3,951
|
|
|
3,386
|
|
||
Accrued compensation and employee benefits
|
2,452
|
|
|
3,397
|
|
||
Deferred revenue
|
1,283
|
|
|
2,301
|
|
||
Related party deferred revenue
|
3,998
|
|
|
829
|
|
||
Note payable
|
26,276
|
|
|
26,514
|
|
||
Total current liabilities
|
39,482
|
|
|
37,398
|
|
||
Deferred rent, net of current portion
|
523
|
|
|
624
|
|
||
Other long-term liabilities
|
98
|
|
|
146
|
|
||
Total liabilities
|
40,103
|
|
|
38,168
|
|
||
Commitments and contingencies (note 5)
|
|
|
|
|
|
||
Stockholders’ equity:
|
|
|
|
|
|
||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding as of March 31, 2013 and December 31, 2012
|
—
|
|
|
—
|
|
||
Common stock, par value $0.001 per share—200,000,000 and 200,000,000 shares authorized as of March 31, 2013 and December 31, 2012, respectively; 44,620,788 and 44,046,970 shares issued and outstanding, respectively
|
45
|
|
|
44
|
|
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Additional paid-in capital
|
188,822
|
|
|
186,778
|
|
||
Accumulated deficit
|
(102,791
|
)
|
|
(101,305
|
)
|
||
Total stockholders’ equity
|
86,076
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|
|
85,517
|
|
||
Total liabilities and stockholders’ equity
|
$
|
126,179
|
|
|
$
|
123,685
|
|
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Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Revenue:
|
|
|
|
|
|
||
Collaborative development program and services revenue
|
$
|
10,903
|
|
|
$
|
12,195
|
|
Product revenue
|
3,104
|
|
|
678
|
|
||
Licensing and royalty revenue
|
3,426
|
|
|
3,509
|
|
||
Total revenue
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17,433
|
|
|
16,382
|
|
||
Cost of revenue:
|
|
|
|
|
|
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Cost of collaborative development program and services revenue
|
6,658
|
|
|
6,879
|
|
||
Cost of product revenue
|
1,133
|
|
|
234
|
|
||
Cost of licensing and royalty revenue
|
52
|
|
|
75
|
|
||
Total cost of revenue
|
7,843
|
|
|
7,188
|
|
||
Gross profit
|
9,590
|
|
|
9,194
|
|
||
Operating expenses:
|
|
|
|
|
|
||
Research and development
|
6,172
|
|
|
5,068
|
|
||
Sales and marketing
|
1,637
|
|
|
1,240
|
|
||
General and administrative
|
2,992
|
|
|
2,818
|
|
||
Total operating expenses
|
10,801
|
|
|
9,126
|
|
||
(Loss) income from operations
|
(1,211
|
)
|
|
68
|
|
||
Other income (expense):
|
|
|
|
|
|
||
Interest expense, net
|
(250
|
)
|
|
(249
|
)
|
||
Other expense, net
|
(19
|
)
|
|
(6
|
)
|
||
Total other income (expense), net
|
(269
|
)
|
|
(255
|
)
|
||
Loss before provision (benefit) for income taxes
|
(1,480
|
)
|
|
(187
|
)
|
||
Provision (benefit) for income taxes
|
6
|
|
|
(1
|
)
|
||
Net loss
|
(1,486
|
)
|
|
(186
|
)
|
||
Net loss per share of common stock, basic and diluted
|
$
|
(0.03
|
)
|
|
$
|
(0.00
|
)
|
Weighted-average number of shares used in computing net loss per share of common stock, basic and diluted
|
44,139
|
|
|
42,241
|
|
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Three Months Ended March 31,
|
||||||
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2013
|
|
2012
|
||||
|
|
|
|
||||
Revenue:
|
|
|
|
|
|
||
Collaborative development program and services revenue
|
$
|
1,912
|
|
|
$
|
2,997
|
|
Licensing and royalty revenue
|
1,366
|
|
|
1,793
|
|
||
Total revenue
|
$
|
3,278
|
|
|
$
|
4,790
|
|
Cost of Revenue:
|
|
|
|
|
|
||
Cost of collaborative development program and services revenue
|
$
|
—
|
|
|
$
|
3
|
|
Total cost of revenue
|
$
|
—
|
|
|
$
|
3
|
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Loss for the period
|
$
|
(1,486
|
)
|
|
$
|
(186
|
)
|
Other comprehensive loss
|
—
|
|
|
—
|
|
||
Comprehensive loss for the period, net of income tax
|
$
|
(1,486
|
)
|
|
$
|
(186
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Cash flows from operating activities:
|
|
|
|
|
|
||
Net loss
|
$
|
(1,486
|
)
|
|
$
|
(186
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
2,201
|
|
|
1,852
|
|
||
Stock-based compensation
|
1,400
|
|
|
827
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Prepaid expenses and other assets
|
(10
|
)
|
|
385
|
|
||
Inventory
|
(671
|
)
|
|
(1,698
|
)
|
||
Accounts receivable
|
771
|
|
|
5,096
|
|
||
Accounts payable
|
9
|
|
|
(412
|
)
|
||
Accrued and other liabilities
|
(525
|
)
|
|
(1,044
|
)
|
||
Deferred revenue
|
(1,018
|
)
|
|
(811
|
)
|
||
Related party deferred revenue
|
3,169
|
|
|
(2,260
|
)
|
||
Net cash provided by operating activities
|
3,840
|
|
|
1,749
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchase of short-term investments
|
(1,001
|
)
|
|
(1,251
|
)
|
||
Purchase of property and equipment
|
(1,423
|
)
|
|
(333
|
)
|
||
Purchased and capitalized intangible assets
|
(108
|
)
|
|
(327
|
)
|
||
Net cash used in investing activities
|
(2,532
|
)
|
|
(1,911
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
|
||
Payment of long-term debt
|
(238
|
)
|
|
(114
|
)
|
||
Proceeds from exercise of common stock options
|
628
|
|
|
121
|
|
||
Net cash provided by financing activities
|
390
|
|
|
7
|
|
||
Net increase (decrease) in cash and cash equivalents
|
1,698
|
|
|
(155
|
)
|
||
Cash and cash equivalents at beginning of period
|
78,283
|
|
|
81,002
|
|
||
Cash and cash equivalents at end of period
|
$
|
79,981
|
|
|
$
|
80,847
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information:
|
|
|
|
|
|||
Cash paid for interest
|
$
|
262
|
|
|
$
|
386
|
|
Cash paid for income taxes, net of refunds received
|
$
|
1
|
|
|
$
|
25
|
|
Noncash investing activities:
|
|
|
|
||||
Transfer of property and equipment to inventory
|
$
|
393
|
|
|
$
|
—
|
|
|
|
|
|
|
Revenue
|
|
Accounts Receivable
|
||||||||
|
Three Months Ended
|
|
As of
|
|
As of
|
||||||
|
March 31,
|
|
March 31,
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||
Customer A
|
12
|
%
|
|
21
|
%
|
|
*
|
|
|
*
|
|
Customer B
|
22
|
%
|
|
33
|
%
|
|
20
|
%
|
|
25
|
%
|
Customer C (1)
|
17
|
%
|
|
14
|
%
|
|
*
|
|
|
*
|
|
Customer D
|
*
|
|
|
*
|
|
|
*
|
|
|
12
|
%
|
Customer E
|
25
|
%
|
|
*
|
|
|
56
|
%
|
|
40
|
%
|
|
|
|
As of March 31, 2013
|
||||||||||||||
|
Fair Value
|
|
Level I
|
|
Level II
|
|
Level III
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
69,751
|
|
|
$
|
69,751
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Certificates of deposit
|
1,001
|
|
|
—
|
|
|
1,001
|
|
|
—
|
|
||||
Total assets measured at fair value
|
$
|
70,752
|
|
|
$
|
69,751
|
|
|
$
|
1,001
|
|
|
$
|
—
|
|
|
As of December 31, 2012
|
||||||||||||||
|
Fair Value
|
|
Level I
|
|
Level II
|
|
Level III
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
70,488
|
|
|
$
|
70,488
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Certificates of deposit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets measured at fair value
|
$
|
70,488
|
|
|
$
|
70,488
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
As of
|
|
As of
|
||||
|
March 31, 2013
|
|
December 31, 2012
|
||||
Lab equipment and machinery
|
$
|
40,514
|
|
|
$
|
38,667
|
|
Leasehold improvements
|
3,019
|
|
|
2,873
|
|
||
Computer equipment and software
|
3,414
|
|
|
3,467
|
|
||
Furniture and fixtures
|
160
|
|
|
160
|
|
||
Construction in progress
|
5,035
|
|
|
5,964
|
|
||
Total property and equipment
|
52,142
|
|
|
51,131
|
|
||
Less accumulated depreciation
|
(28,774
|
)
|
|
(27,073
|
)
|
||
Property and equipment, net
|
$
|
23,368
|
|
|
$
|
24,058
|
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Depreciation expense
|
$
|
2,051
|
|
|
$
|
1,709
|
|
|
As of
|
|
As of
|
||||
|
March 31, 2013
|
|
December 31, 2012
|
||||
Patents issued
|
$
|
4,048
|
|
|
$
|
3,932
|
|
Patents pending
|
3,585
|
|
|
3,386
|
|
||
Trademarks
|
40
|
|
|
40
|
|
||
Total intangible assets
|
7,673
|
|
|
7,358
|
|
||
Less patent amortization
|
(837
|
)
|
|
(687
|
)
|
||
Intangible assets, net
|
$
|
6,836
|
|
|
$
|
6,671
|
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Amortization expense
|
$
|
150
|
|
|
$
|
143
|
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Rent expense
|
$
|
324
|
|
|
$
|
324
|
|
|
Three Months Ended March 31, 2013
|
||||||||||
|
Principal
|
|
Interest
|
|
Total
|
||||||
Symyx payments
|
$
|
238
|
|
|
$
|
262
|
|
|
$
|
500
|
|
|
Three Months Ended
|
||||
|
March 31,
|
||||
|
2013
|
|
2012
|
||
Expected term (in years)
|
6.0
|
|
|
6.0
|
|
Risk-free interest rate
|
1.1
|
%
|
|
1.2
|
%
|
Expected volatility
|
59
|
%
|
|
60
|
%
|
Expected dividend rate
|
—
|
%
|
|
—
|
%
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2013
|
|
2012
|
||||
Cost of revenue
|
$
|
374
|
|
|
$
|
284
|
|
Research and development
|
395
|
|
|
209
|
|
||
Sales and marketing
|
280
|
|
|
125
|
|
||
General and administrative
|
351
|
|
|
209
|
|
||
Total stock-based compensation
|
$
|
1,400
|
|
|
$
|
827
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2013
|
|
2012
|
||||
Stock options
|
$
|
1,018
|
|
|
$
|
793
|
|
Restricted stock awards and restricted stock units (RSUs)
|
382
|
|
|
34
|
|
||
Total stock-based compensation
|
$
|
1,400
|
|
|
$
|
827
|
|
|
Unrecognized
Compensation Expense |
|
Weighted-
Average Period (in years) |
||
Stock options
|
$
|
7,518
|
|
|
2.6
|
RSUs
|
$
|
4,513
|
|
|
3.6
|
|
March 31, 2013
|
|
December 31, 2012
|
||
Number of stock options outstanding
|
7,427,782
|
|
|
7,426,417
|
|
Number of RSUs outstanding
|
687,197
|
|
|
254,863
|
|
Shares available for future grant
|
6,133,832
|
|
|
5,001,956
|
|
Number of warrants outstanding
|
912,368
|
|
|
912,368
|
|
Total shares reserved
|
15,161,179
|
|
|
13,595,604
|
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Net loss attributable to common stockholders
|
$
|
(1,486
|
)
|
|
$
|
(186
|
)
|
Shares used in computing net loss per share of common stock, basic and diluted
|
44,138,813
|
|
|
42,241,345
|
|
||
Net loss per share of common stock, basic and diluted
|
$
|
(0.03
|
)
|
|
$
|
(0.00
|
)
|
|
Three Months Ended March 31,
|
||||
|
2013
|
|
2012
|
||
Stock options to purchase common stock
|
7,427,782
|
|
|
8,786,124
|
|
RSUs
|
687,197
|
|
|
274,070
|
|
Common stock subject to repurchase
|
—
|
|
|
7,500
|
|
Common stock warrants
|
912,368
|
|
|
912,368
|
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Related party revenue
|
$
|
1,159
|
|
|
$
|
1,333
|
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Related party revenue
|
$
|
2,119
|
|
|
$
|
3,456
|
|
Related cost of revenue
|
$
|
—
|
|
|
$
|
3
|
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
|
|
|
|
||||
United States
|
$
|
13,022
|
|
|
$
|
12,048
|
|
Japan
|
4,061
|
|
|
3,565
|
|
||
APAC other
|
241
|
|
|
735
|
|
||
Europe and Middle East
|
109
|
|
|
34
|
|
||
Total
|
$
|
17,433
|
|
|
$
|
16,382
|
|
•
|
Overview
. Discussion of our business and overall analysis of financial and other highlights affecting the Company in order to provide context for the remainder of MD&A.
|
•
|
Strategy
. Our overall strategy.
|
•
|
Basis of Presentation
. A summary of the primary elements of our financial results.
|
•
|
Critical Accounting Estimates
. Accounting estimates that we believe are most important to understanding the assumptions and judgments incorporated in our reported financial results and forecasts.
|
•
|
Results of Operations
. An analysis of our financial results comparing the three months ended March 31, 2013 to the three months ended March 31, 2012.
|
•
|
Liquidity and Capital Resources
. An analysis of changes in our balance sheets and cash flows, and discussion of our financial condition and potential sources of liquidity.
|
•
|
CDP and services revenue.
CDP revenue may include payments for full time equivalent employees, milestone payments, subscription payments for dedicated and shared workflow tools used in the CDP and reimbursed payments for consumables and outside services from third parties. Individual CDPs typically range from one to three years. Services revenue outside of CDPs is substantially comprised of support and maintenance fees and extended warranty agreements. CDP and services revenue is recognized in a manner consistent with activities performed.
|
•
|
Product revenue.
Product revenue consists of sales of our workflow hardware and embedded software. In support of our business strategy, we selectively sell our proprietary tools to increase opportunities for CDPs and licensing fees and royalties. Historically, we have not sold a significant number of our workflow products and we do not anticipate selling a significant number in the future. As our other revenue streams increase we expect our product revenue to decrease as a percentage of our overall revenue. Product revenue has been recognized upon shipment since January 1, 2011. Product sales that originated prior to January 1, 2011 were generally recognized on a straight-line basis over the maintenance period once delivery occurred (title and risk of loss passed to the customer), and customer acceptance, if required, was achieved.
|
•
|
Licensing and royalty revenue.
Licensing and royalty revenue consists of licensing fees and royalties for granting our customers rights to our proprietary technology and IP. Specifically, this includes licensing the HPC capabilities of our workflows, licensing our informatics and analysis software, and licensing fees and royalties on products that incorporate technology developed through our CDPs. In certain instances, minimum license fees and royalties may be guaranteed by customer contracts and are recognized as revenue ratably over the related periods. In the last three years, licensing and royalty revenue has generally been the fastest growing element of our revenue. Over the long term, we expect licensing and royalty revenue to be an increasing and significant component of our revenue.
|
•
|
Cost of CDP and services revenue.
Our cost of CDP and services revenue is primarily comprised of salaries and other personnel-related expenses (including stock-based compensation) for our collaborative research and development scientists, engineers and development fab process operations employees. Additionally, our cost of revenue includes costs of wafers, targets, materials, program-related supplies, third-party professional fees and depreciation of equipment used in CDPs.
|
•
|
Cost of product revenue.
Our cost of product revenue primarily includes our cost of products sold. Our cost of product revenue will fluctuate based on the type of product and configuration sold. Historically, we have not sold a significant number of our workflow products and we do not anticipate selling a significant number in the future. Cost of product revenue has been recognized upon product shipment since January 1, 2011. For product sales that originated prior to January 1, 2011, our cost of product revenue was recognized in a similar manner as the corresponding product revenue and was generally recognized on a straight-line basis over the maintenance period. The variability in cost of product revenue as a percentage of revenue is related to the quantity and configuration of products sold during the period and the corresponding maintenance period over which product revenue and cost of product revenue is being recognized.
|
•
|
Cost of licensing and royalty revenue.
Our cost of licensing and royalty revenue is primarily comprised of the amortization of acquired patents and licensing obligations.
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
|
2013
|
|
2012
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
(in thousands)
|
|
|
|
|
|||||||
Revenue:
|
|
|
|
|
|
|
|
|||||||
CDP and services revenue
|
$
|
10,903
|
|
|
$
|
12,195
|
|
|
$
|
(1,292
|
)
|
|
(11
|
)%
|
Product revenue
|
3,104
|
|
|
678
|
|
|
2,426
|
|
|
358
|
%
|
|||
Licensing and royalty revenue
|
3,426
|
|
|
3,509
|
|
|
(83
|
)
|
|
(2
|
)%
|
|||
Total revenue
|
17,433
|
|
|
16,382
|
|
|
1,051
|
|
|
6
|
%
|
|||
Cost of revenue
|
7,843
|
|
|
7,188
|
|
|
655
|
|
|
9
|
%
|
|||
Gross profit
|
9,590
|
|
|
9,194
|
|
|
396
|
|
|
4
|
%
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Research and development
|
6,172
|
|
|
5,068
|
|
|
1,104
|
|
|
22
|
%
|
|||
Sales and marketing
|
1,637
|
|
|
1,240
|
|
|
397
|
|
|
32
|
%
|
|||
General and administrative
|
2,992
|
|
|
2,818
|
|
|
174
|
|
|
6
|
%
|
|||
Total operating expenses
|
10,801
|
|
|
9,126
|
|
|
1,675
|
|
|
18
|
%
|
|||
(Loss) income from operations
|
(1,211
|
)
|
|
68
|
|
|
(1,279
|
)
|
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
|||||||
Interest expense, net
|
(250
|
)
|
|
(249
|
)
|
|
(1
|
)
|
|
|
||||
Other expense, net
|
(19
|
)
|
|
(6
|
)
|
|
(13
|
)
|
|
|
||||
Total other income (expense), net
|
(269
|
)
|
|
(255
|
)
|
|
(14
|
)
|
|
|
||||
Loss before provision (benefit) for income taxes
|
(1,480
|
)
|
|
(187
|
)
|
|
(1,293
|
)
|
|
|
||||
Provision (benefit) for income taxes
|
6
|
|
|
(1
|
)
|
|
7
|
|
|
|
||||
Net loss
|
$
|
(1,486
|
)
|
|
$
|
(186
|
)
|
|
$
|
(1,300
|
)
|
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
2013
|
|
2012
|
||||||||||
|
Revenues
|
|
% of Revenues
|
|
Revenues
|
|
% of Revenues
|
||||||
|
(in thousands)
|
|
|
|
(in thousands)
|
|
|
||||||
United States
|
$
|
13,022
|
|
|
75
|
%
|
|
$
|
12,048
|
|
|
74
|
%
|
Japan
|
4,061
|
|
|
23
|
%
|
|
3,565
|
|
|
22
|
%
|
||
APAC other
|
241
|
|
|
1
|
%
|
|
735
|
|
|
4
|
%
|
||
Europe and Middle East
|
109
|
|
|
1
|
%
|
|
34
|
|
|
—
|
%
|
||
Total
|
$
|
17,433
|
|
|
100
|
%
|
|
$
|
16,382
|
|
|
100
|
%
|
|
Three Months Ended March 31,
|
||||||
|
2013
|
|
2012
|
||||
Net cash provided by operating activities
|
$
|
3,840
|
|
|
$
|
1,749
|
|
Net cash used in investing activities
|
$
|
(2,532
|
)
|
|
$
|
(1,911
|
)
|
Net cash provided by financing activities
|
$
|
390
|
|
|
$
|
7
|
|
|
Payments Due by Period
|
||||||||||||||||||
|
Total
|
|
Less Than
One Year |
|
1 - 3 Years
|
|
3 - 5 Years
|
|
More Than
5 Years |
||||||||||
|
(in thousands)
|
||||||||||||||||||
Operating lease obligations
|
$
|
3,684
|
|
|
$
|
1,249
|
|
|
$
|
2,435
|
|
|
—
|
|
|
—
|
|
||
Note payable
|
26,276
|
|
|
26,276
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Contractual interest payments on note payable
|
674
|
|
|
674
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Purchase obligations(1)
|
421
|
|
|
421
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
31,055
|
|
|
$
|
28,620
|
|
|
$
|
2,435
|
|
|
$
|
—
|
|
|
$
|
—
|
|
▪
|
our dependence on a limited number of customers;
|
▪
|
the length of our sales and development cycles for CDPs, which makes it difficult to predict the timing of new or expanded CDPs, as well as the timeframe in which technology developed under CDPs will be available for commercialization;
|
▪
|
fluctuations in the volume and prices of products manufactured and sold by our customers that generate licensing and royalty revenue for us;
|
▪
|
our revenue mix, which may vary from quarter to quarter as (i) we enter into new CDPs and related customer arrangements, (ii) existing CDPs, particularly for significant customers, are completed, extended, or undergo a change in scope; (iii) licensing arrangements take effect and/or (iv) we enter into IP sale transactions;
|
▪
|
the highly cyclical nature of and price volatility in the semiconductor industry;
|
▪
|
the financial stability of any of our customers;
|
▪
|
the timing and extent to which we enter into new CDPs or complete, extend, expand or reduce the scope of existing CDPs;
|
▪
|
one-time offsets to revenue associated with the vesting of contingent warrants issued to two of our customers that are currently outstanding;
|
▪
|
non-cash charges relating to stock-based compensation, amortization of intangible assets and impairment expenses related to inventory and long-lived assets;
|
▪
|
any involvement in significant litigation, and in particular intellectual property litigation;
|
▪
|
any payments resulting from our intellectual property indemnification policies and obligations;
|
•
|
any need for significant additional capital to finance our business;
|
•
|
any delay in shipments caused by shortages of components incorporated in products sold into the market, design errors or other manufacturing problems associated with such products;
|
•
|
warranty claims, product recalls and product liability for our HPC tools and for products that incorporate technology developed through our CDPs; and
|
•
|
business interruptions such as earthquakes and other natural disasters.
|
•
|
We may be unable to achieve broad customer acceptance of our HPC platform and approach as an alternative to conventional research and development activities.
|
•
|
We may be unable to successfully collaborate with all of our customers to achieve the technological innovations sought by our customers.
|
•
|
Our customers may not be successful in commercializing products that incorporate technology and IP developed during our CDPs with them.
|
•
|
Existing and potential customers may be resistant to paying license and royalty fees; and we may face challenges in monitoring and enforcing royalty agreements with existing customers.
|
•
|
the limited number of customers that are appropriate sales targets for our platform and that are willing to enter into licensing agreements with us;
|
•
|
our ability to enter into CDPs with customers who are or will become market leaders in larger, growing market segments;
|
•
|
our customers' budgetary constraints and internal review procedures that must be completed to begin collaboration with us; and
|
•
|
the significant cultural transition required for a customer's internal R&D team to embrace us as a collaborative partner.
|
•
|
improve our sales, marketing and customer support programs and our R&D efforts;
|
•
|
enhance our operational and financial control systems;
|
•
|
expand, train and manage our employee base and promptly replace departing employees with key skills; and
|
•
|
effectively address new issues related to our growth as they arise.
|
•
|
fluctuations in our financial results or outlook, or those of our customers or of companies perceived to be similar to us;
|
•
|
changes in estimates of our financial results or recommendations by securities analysts;
|
•
|
changes in market valuations of similar companies;
|
•
|
changes in our capital structure, such as future issuances of securities or the incurring of debt;
|
•
|
announcements by us or our competitors of significant contracts, acquisitions or strategic alliances; and
|
•
|
litigation involving us, our general industry or both;
|
•
|
additions or departures of key personnel;
|
•
|
regulatory developments in the U.S., countries in Asia, and/or other foreign countries;
|
•
|
investors' general perception of us; and
|
•
|
general economic and political conditions in the US and globally, such as recessions, interest rate changes and international currency fluctuations
|
•
|
staggered board of directors;
|
•
|
authorizing the board to issue, without stockholder approval, preferred stock with rights senior to those of our common stock;
|
•
|
authorizing the board to amend our bylaws and to fill board vacancies until the next annual meeting of the stockholders;
|
•
|
prohibiting stockholder action by written consent;
|
•
|
limiting the liability of, and providing indemnification to, our directors and officers;
|
•
|
eliminating the ability of our stockholders to call special meetings; and
|
•
|
requiring advance notification of stockholder nominations and proposals.
|
Exhibit
|
|
|
|
Incorporated by Reference
|
|
Filed
|
||||
Number
|
|
Exhibit Description
|
|
Form
|
|
Date
|
|
Number
|
|
Herewith
|
2.1
|
|
Asset Purchase Agreement by and between Intermolecular, Inc. and Symyx Technologies, Inc. dated as of July 28, 2011 (1)
|
|
S-1/A
|
|
09/09/11
|
|
2.1
|
|
|
3.1
|
|
Amended and Restated Certificate of Incorporation of Intermolecular, Inc.
|
|
10-K
|
|
03/16/12
|
|
3.1
|
|
|
3.2
|
|
Amended and Restated Bylaws of Intermolecular, Inc.
|
|
10-K
|
|
03/16/12
|
|
3.2
|
|
|
4.1
|
|
Specimen Common Stock Certificate
|
|
S-1/A
|
|
11/07/11
|
|
4.1
|
|
|
4.2
|
|
Warrant to purchase shares of common stock issued to Timane S.a.r.l. dated June 20, 2008
|
|
S-1
|
|
07/29/11
|
|
4.2
|
|
|
4.3
|
|
Form of warrant to purchase shares of common stock issued to Toshiba Corporation and SanDisk Corporation dated March 15, 2010
|
|
S-1/A
|
|
10/26/11
|
|
4.3
|
|
|
4.4
|
|
Fourth Amended and Restated Investor Rights Agreement dated as of March 4, 2011, by and among Intermolecular, Inc. and certain stockholders named therein, as amended by Amendment No. 1 to Fourth Amended and Restated Investor Rights Agreement dated as of June 14, 2011
|
|
S-1
|
|
07/29/11
|
|
10.1
|
|
|
4.5
|
|
Secured Promissory Note, issued by the Company to Symyx Technologies, Inc. on November 23, 2011
|
|
10-K
|
|
03/16/12
|
|
4.5
|
|
|
10.20 †
|
|
Second Addendum to Collaborative Development Program Agreement, dated March 27, 2013, by and among Toshiba Corporation, SanDisk Corporation and Intermolecular, Inc.
|
|
|
|
|
|
|
|
X
|
10.21 †
|
|
Tool Purchase and Informatics License Agreement by and between First Solar, Inc. and Intermolecular, Inc., dated February 6, 2013
|
|
|
|
|
|
|
|
X
|
10.22 +
|
|
Separation Agreement and General Release Agreement, effective March 28, 2013, by and between John R. Behnke and Intermolecular, Inc.
|
|
|
|
|
|
|
|
X
|
10.23 +
|
|
Employment Agreement dated March 25, 2013 by and between Raj Jammy and Intermolecular, Inc.
|
|
|
|
|
|
|
|
X
|
32.1
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
|
|
X
|
31.1
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
|
|
X
|
31.2
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
|
|
X
|
32.1
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
|
|
X
|
32.2
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
|
|
X
|
101.INS*
|
|
XBRL Instance Document
|
|
|
|
|
|
|
|
X
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
X
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
X
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
X
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
X
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
INTERMOLECULAR, INC.
|
|
|
|
(Registrant)
|
|
Date: May 2, 2013
|
|
By:
|
/s/ Peter L. Eidelman
|
|
|
|
Peter L. Eidelman
|
|
|
|
Chief Financial Officer
|
1.
|
Extension of Initial Term; Additional Provision for Termination for Convenience
|
1.1
|
The Term of the Agreement is hereby extended by one additional year period from March 15, 2013 through and including March 14, 2014 (“Second Extended Period”) in accordance with Section 11.1 of the Agreement and this Second Addendum. All references to the “Term” as used in the Agreement shall now mean the period from March 15, 2010 through and including March 14, 2014. During the Second Extended Period, Intermolecular agrees to provide capabilities summarized in accordance with Exhibit A. The Development Plan for the Second Extended Period (“Second Extended Development Plan”) shall be mutually agreed upon as soon as practicable and no later than April 15, 2013, in accordance with the guidelines and target criteria provided in Exhibit B and shall be signed and incorporated by reference herein.
|
1.2
|
Section 11.2 of the Agreement, “Termination for Convenience” is amended by adding the following.
|
1
11
|
|
March 15, 2013
|
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
|
(I)
|
If termination for convenience under this Section 1.2 is exercised during the First Window Period, the terminating party shall pay to Intermolecular all amounts due by such party up to the end of the quarterly period ending June 14, 2013 under Section 2.1, as well as US$[***] constituting such payment due for the quarterly period ending September 14, 2013 as a cancellation fee, and this Agreement will terminate with respect to the terminating party on June 14, 2013;
|
(II)
|
If termination for convenience under this Section 1.2 is exercised during the Second Window Period, the terminating party shall pay to Intermolecular all amounts due by such party up to the end of the quarterly period ending September 14, 2013 under Section 2.1, as well as US$[***] constituting such payment due for the quarterly period ending December 14, 2013 as a cancellation fee, and this Agreement will terminate with respect to the terminating party on September 14, 2013;
|
(III)
|
If termination for convenience under this Section 1.2 is exercised during the Third Window Period, the terminating party shall pay to Intermolecular all amounts due by such party up to the end of the quarterly period ending December 14, 2013 under Section 2.1, as well as US$[***] constituting such payment due for the quarterly period ending March 14, 2014 as a cancellation fee, and this Agreement will terminate with respect to the terminating party on December 14, 2013;
|
(IV)
|
All amounts due from Toshiba and SanDisk under Section 3.1 below shall remain due and owing from Toshiba and SanDisk respectively, and shall be unaffected by any termination for convenience exercised under this Section 1.2; and
|
(V)
|
If either Toshiba or SanDisk (but not both) terminates for convenience under this Section 1.2 (“One-Party Termination”), the other may continue the CDP through the conclusion of the Second Extended Period by paying the terminating party’s share of the remaining amounts due under Section 2.1 of the Second Addendum below during the Second Extended Period, so that Intermolecular receives a cumulative total of US$[***] under Section 2.1 below; and
|
(VI)
|
The license election date for Toshiba and SanDisk under Section 4.2.2 of the Original Agreement is unchanged by a termination for convenience under this Section 1.2, i.e. the license election shall be made within [***] after March 14, 2014, the conclusion of the Term as extended under this Second Addendum; and
|
(VII)
|
In no event shall Intermolecular be entitled to receive more than the cumulative total of [***] US Dollars (US$[***]) under Section 2.1 below. In no event shall Intermolecular be entitled to receive less than [***] Dollars (US$[***]) per company or the cumulative total of [***] US Dollars (US$[***]) under Section 2.1 below.
|
2.
|
Service Fees and Workflow Infrastructure Subscription Fees
|
2.1
|
Toshiba and SanDisk each will fund for the CDP under the Second Extended Development Plan for the Second Extended Period and each agrees to pay Intermolecular during the Second Extended Period [***] US Dollars (US$[***]) for a cumulative total of [***] US Dollars (US$[***]) in exchange for
|
2
11
|
|
March 15, 2013
|
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
|
2.2
|
During the Second Extended Period, Toshiba and SanDisk may request use of (i) an additional [***] to be added to the existing [***], or (ii) an additional [***] to be added to the existing [***], or (iii) a [***] to an existing [***] (each individually “Additional Capability”). If so requested, Toshiba and SanDisk each agree to pay Intermolecular [***] US Dollars (US $[***]) for each [***] period for the use of each such Additional Capability within [***] days from their respective receipt of the invoice to be issued by Intermolecular at the end of such [***].
|
3.
|
License Fees
|
3.1
|
In addition to any other license fees payable by Toshiba and SanDisk under Section 5.4 of the Agree
ment if applicable, Toshiba and SanDisk each agree to pay Intermolecular
[***]
US Dollars (US$
[***]
) for a cumulative total of
[***]
US Dollars (US$
[***]
) for the Intermolecular Background IP development license rights set forth in Section 4.1.1 in the CDP Field during the Second Extended Period. These license fees are noncancellable by Toshiba and noncancellable by SanDisk, and shall be paid by each of Toshiba and SanDisk respectively, regardless of whether Toshiba and/or SanDisk elects to terminate the Agreement prior to the conclusion of the Second
Extended Period
in accordance with Section 1.2 of this Second Addendum, provided, however, that Toshiba and/SanDisk shall not be required to pay these licensee fees or any portion thereof that will be due and payable if this Agreement is terminated for breach by Intermolecular as set forth in Section 11.3 of the Original Agreement. Intermolecular acknowledges and agrees that Toshiba’s and SanDisk’s exercise of such license includes internal pre-production development activities at fabrication and R&D centers controlled by Toshiba and/or SanDisk. For the avoidance of doubt, Toshiba’s and SanDisk’s exercise of such license is limited to the Term through the last day of the Second Extended Period (and not to any additional extended periods unless mutually agreed in writing). Intermolecular shall invoice each of Toshiba and SanDisk in
[***]
equal payments of
[***] US Dollars (US$[***]) every [***] starting March 15, 2013, which are payable within [***] from receipt of valid invoices.
|
4.
|
Intellectual Property
|
4.1
|
Subject to the provisions of this Second Addendum, the provisions of Section 4 to the First Addendum are incorporated into this Second Addendum by reference and such provisions are reaffirmed by the parties. The parties agree that all instances of “First Addendum” in Section 4 of the First Addendum shall be “Second Addendum” for meetings, communications and events undertaken on or after the Second Addendum Effective Date.
|
4.2
|
As of the Second Addendum Effective Date, Section 2.2.2 of the Agreement as modified by Section 4 of the First Addendum, is updated and modified as follows.
|
3
11
|
|
March 15, 2013
|
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
|
4.2A
|
Prior to identifying an IP ownership category for any invention disclosure associated with the CDP, Intermolecular shall identify if such invention is subject to ownership by SanDisk and/or Toshiba as [***] and/or [***] under Section 3.2.4 (“Section 3.2.4 IP”). For all inventions that Intermolecular identifies as Section 3.2.4 IP, Intermolecular shall assign and transfer to SanDisk and Toshiba its entire right, title and interest in and to the invention (including any invention disclosures, patent applications and issued patents).
|
4.2B
|
If Intermolecular asserts that an invention is not Section 3.2.4 IP, Intermolecular shall provide, in writing, its reasoning for such assertion with particularity to SanDisk and Toshiba adequately in advance of the immediately following IP Committee meeting. If the IP Committee does not unanimously agree that an invention is not Section 3.2.4 IP, Intermolecular shall not prepare and/or file any patent application describing and claiming such invention in any jurisdiction throughout the world. If the IP Committee agrees that an invention is not Section 3.2.4 IP, the parties shall proceed with the IP ownership categorization pursuant to Section 3 of the Agreement and each party may propose an IP ownership category for such invention. If Intermolecular proposes a category other than [***], Intermolecular shall have the burden to establish why such invention is not [***] and shall identify with particularity the reasons therefor. If the IP Committee does not unanimously agree that an invention is other than [***], Intermolecular shall not prepare and/or file any patent application describing and claiming such invention in any jurisdiction throughout the world. The parties agree to identify all invention categories in good faith and in accordance with the definitions of each category and Section 3 of the Agreement.
|
4.2C
|
[Intentionally left blank.]
|
4.2D
|
The parties hereby agree and understand that the standard applied in determining the ownership or Category of an invention is different from that applied in evaluating patentability (i.e., novelty and non-obviousness) and therefore an invention can still be based exclusively on an Intellectual Property Right even though such invention is patentably distinct from or patentable over such Intellectual Property Right.
|
4.3
|
Notwithstanding the expiration or termination of the Initial Term, Notwithstanding the expiration or termination of the Initial Term, the IP Committee shall continue to meet at least once a quarter to make decisions on filing of patent applications related to the inventions arising out of the CDP. For the avoidance of doubt, Section 2.2.2 of the Original Agreement as modified by Section 4 of the First Addendum and Section 4 of this Second Addendum shall survive termination of the Agreement for an additional period of [***] after the expiration of the Initial Term. Intermolecular shall provide SanDisk and Toshiba with sufficient ongoing information to assess such filings and perfections through and including the first anniversary of the date if applicable in which SanDisk and Toshiba make a Section 4.2.2(A), 4.2.2(C) or 4.2.2(D) license election.
|
4.4
|
In case of One-Party Termination as contemplated in Section 1.2 (V) of this Second Addendum,
|
4.4A
|
the terminating party shall still be entitled to participate to all IP Committee meetings regardless of the termination by such terminating party, provided, however, that the terminating party shall not claim the ownership to any Foreground IP which is exclusively and solely based on any DOE issued or identified after the date of termination with respect to the terminating party; and
|
4.4B
|
provided the terminating party pays all its fees due to Intermolecular under this Second Addendum, the Licensed IP set forth in Section 1.28 of the Original Agreement shall also mean any Foreground IP in which Intermolecular has or will have any ownership that will be conceived or developed
|
4
11
|
|
March 15, 2013
|
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
|
5.
|
Amendments to Section 5 of the Original Agreement
|
5.1
|
The first sentence of Section 5.4.1(D) of the Original Agreement is amended such that (a) in line 3, “US$[***]” is replaced with “US$[***]”, and (b) in line 4, “US$[***]” is replaced with “US$[***]”.
|
5.2
|
Section 5.4.2 of the Original Agreement is amended such that the last row in Table 2B within Section 5.4.2 is amended such that each of the first and second 12 month periods following completion of the CDP (whether the license grant elected is exclusive or non-exclusive) is changed from [***] US Dollars (“US$[***]”) to [***] US Dollars (“US$[***]”).
|
5.3
|
For the avoidance of doubt, the amendments described in Section 5.1 and 5.2 immediately above do not affect any other minimum payments described in Section 5.4.1(D) of the Original Agreement or any other periods in the last row of Table 2B within Section 5.4.2 of the Original Agreement. For further avoidance of doubt, the payments in Section 5.2 above shall not apply to the minimum payments beginning in the third year following this Second Extended Period required to maintain exclusivity, as described in the last row of Table 2B within Section 5.4.2 of the Original Agreement.
|
6.
|
Amendments to Section 7 of the Original Agreement
|
6.1
|
Section 7.1.3 of the Original Agreement is clarified that “CDP” in that section has been extended through the conclusion of the Second Extended Period.”
|
5
11
|
|
March 15, 2013
|
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
|
6.2
|
Intermolecular will work in good faith to seek approval to amend each Warrant to provide that each Warrant may be exercised on a cashless “net exercise” basis at the sole discretion of any Warrant holder. Any amendment to the Warrants requires approval by Intermolecular’s Board of Directors. Nothing in this Section 6.2 guarantees that the Warrants will be amended.
|
7.
|
Miscellaneous
|
7.1
|
All references to the Agreement in any other document shall be deemed to refer to the Agreement as modified by this Second Addendum. All days and times referenced in this Second Addendum will be calculated based on California, USA time (P.S.T.). Except as expressly modified by this Second Addendum, all of the terms and conditions of the Agreement shall remain in full force and effect. In the event that the terms of this Second Addendum conflict with the terms of the Agreement, the terms of this Second Addendum shall control.
|
6
11
|
|
March 15, 2013
|
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
|
7
11
|
|
March 15, 2013
|
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
|
8
11
|
|
March 15, 2013
|
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
|
9
11
|
|
March 15, 2013
|
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
|
Date
|
Time
|
Location
|
[***]
|
16:00 PST
|
[***]
|
[***]
|
16:00 PST
|
[***]
|
[***]
|
16:00 PST
|
[***]
|
[***]
|
16:00 PST
|
[***]
|
[***]
|
16:00 PST
|
[***]
|
[***]
|
16:00 PST
|
[***]
|
[***]
|
16:00 PST
|
[***]
|
[***]
|
16:00 PST
|
[***]
|
[***]
|
16:00 PST
|
[***]
|
[***]
|
16:00 PST
|
[***]
|
[***]
|
16:00 PST
|
[***]
|
[***]
|
16:00 PST
|
[***]
|
10
11
|
|
March 15, 2013
|
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
|
11
11
|
|
March 15, 2013
|
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
|
1.
|
IMI has developed proprietary Equipment (as more fully defined in Section 2.10 below) and Informatics Software (as more fully defined in Section 2.19 below) to enable research, design, experimentation, development and commercialization in the area of and with the use of HPC Technology (as more fully defined in Section 2.17 below).
|
2.
|
IMI is in the business of selling and leasing Equipment and licensing HPC Technology.
|
3.
|
Customer is engaged in the research, design, development and commercialization of materials, manufacturing processes, and technologies in the Field as more fully defined in Section 2.11 below.
|
4.
|
Customer desires to purchase Equipment and associated licenses to HPC Technology and Informatics Software from IMI.
|
1.
|
EXHIBITS
|
1.1
|
Quote
|
1.2
|
Tool and software description
|
1.3
|
Acceptance Criteria
|
1.4
|
IMI Maintenance and Support Services
|
2.
|
DEFINITIONS
|
2.1
|
Acceptance Criteria
|
2.2
|
Affiliate
|
2.3
|
Background Technology
|
2.4
|
CDP Agreement
|
2.5
|
Completion Date
|
2.6
|
Customer Acceptance
|
2.7
|
Customer Site
|
2.8
|
Confidential Information
|
2.9
|
Effective Date
|
2.10
|
Equipment
|
2.11
|
Field
|
2.12
|
HPC Derivatives
|
2.13
|
HPC-Enabled Informatics Software
|
2.14
|
Non-HPC-Enabled Informatics Software
|
2.15
|
HPC Mode
|
2.16
|
HPC Site License
|
2.17
|
HPC Technology
|
1.
|
design,
|
2.
|
synthesis,
|
3.
|
processing,
|
4.
|
process sequencing,
|
5.
|
process integration,
|
6.
|
device integration,
|
7.
|
analysis, or
|
8.
|
characterization,
|
2.18
|
THIS SECTION INTENTIONALLY LEFT BLANK
|
2.19
|
Informatics Software
|
2.20
|
Informatics Improvements
|
2.21
|
Informatics Updates
|
2.22
|
Intellectual Property Rights
|
2.23
|
Know-how
|
2.24
|
License Fees
|
2.25
|
Material
|
2.26
|
THIS SECTION INTENTIONALLY LEFT BLANK
|
2.27
|
THIS SECTION INTENTIONALLY LEFT BLANK
|
2.28
|
Quote
|
2.29
|
Specifications
|
2.30
|
Statutory Rights
|
2.31
|
Support
|
2.32
|
Term
|
2.33
|
Third Party
|
2.34
|
THIS SECTION INTENTIONALLY LEFT BLANK
|
2.35
|
Use
|
2.36
|
Workflow
|
3.
|
PURCHASE
|
3.1
|
Purchase of Software means license
|
3.2
|
Purchase
|
3.3
|
Quote
|
4.
|
ACCEPTANCE AND SUPPORT SERVICES
|
4.1
|
Workflow Assembly
|
4.2
|
Customer Acceptance
|
4.3
|
Delivery
|
4.4
|
Support
|
5.
|
OWNERSHIP OF INTELLECTUAL PROPERTY RIGHTS AND KNOW-HOW
|
5.1
|
HPC Technology
|
5.2
|
Materials
|
6.
|
LICENSES
|
6.1
|
HPC Site License
|
6.2
|
License Grant for Informatics Software
|
6.3
|
Term of License
|
6.4
|
Limited scope of license for use of Third Parties
|
6.5
|
Intentionally Left Blank
|
6.6
|
No Transfer to or use by Third Party of Equipment in HPC Mode
|
6.7
|
Software is licensed and not owned
|
6.8
|
Informatics Software is owned by IMI
|
6.9
|
Customer agrees that it will not itself, and will not through any parent, subsidiary, Affiliate, agent, or other Third Party, directly or indirectly, do any of the following:
|
6.10
|
THIS SECTION INTENTIONALLY LEFT BLANK
|
6.11
|
Subject to payment by Customer of the amounts set forth in the applicable Quote and during any period in which Customer makes the payments as set forth in Section 7.3, IMI will provide to Customer the Support in accordance with Exhibit 1.4. IMI will provide Informatics Updates and improvements (provided such improvements are generally made available to all other licensees) [***].
|
6.12
|
Legend.
All copies of the Informatics Software shall include IM’s copyright, trademarks, patent numbers, and other proprietary notices in the manner in which such notices were placed by IMI on such Informatics Software. Further, IMI may label the Equipment with a permanent non-erasable identification label including but not limited to IMI’s name, IMI’s model number, a sequential serial number in IMI’s standard format, date of manufacture, location manufactured, and specification version to which the Equipment was manufactured. Customer shall not remove, obscure, or alter IM’s copyright notices, trademarks, patent numbers, or other proprietary rights notices affixed to or contained within the Informatics Software or the Equipment.
|
6.13
|
THIS SECTION INTENTIONALLY LEFT BLANK
|
7.
|
PAYMENTS
|
7.1
|
License Fees
|
7.2
|
Equipment Purchase Fees
|
7.3
|
Warranty and Support Fees
|
7.4
|
Payment Method
|
7.5
|
Late payments
|
7.6
|
Taxes
|
7.7
|
Records; Inspection
|
8.
|
CONFIDENTIAL INFORMATION
|
8.1
|
The Parties acknowledge that they may receive information from the other Party which may be considered confidential and
proprietary.
The receiving Party agrees to avoid any un-authorized disclosure, dissemination, or use of such information that, if disclosed in writing, is identified and marked as
|
8.2
|
The receiving Party will use the Confidential Information solely for the purpose of performing its rights and obligations under the Agreement.
|
8.3
|
The receiving Party will not disclose Confidential Information to a Third Party without the prior written consent of the disclosing Party. The receiving Party will protect such information from un-authorized disclosure, use or dissemination with at least the same degree of care as the receiving Party exercises to protect its own information of similar type and importance, but in no event less than reasonable care.
|
8.4
|
The obligations of confidentiality and protection required by this Section will survive the expiration, termination, or cancellation of this Agreement for a period of five years thereafter.
|
8.5
|
The obligation of confidentiality will not apply, or will cease to apply, to any information that: (a) was known to the receiving Party prior to its receipt of Confidential Information under this Agreement; (b) is or becomes publicly available without breach of this Agreement by the receiving Party; (c) is received from a Third Party without an obligation of confidentiality to the disclosing Party; or (d) is developed independently by employees of the receiving Party not having access to such information.
|
8.6
|
Notwithstanding anything to the contrary in this Section 8, each Party shall be permitted to lawfully disclose Confidential Information of the other Party to any governmental agency to the extent such disclosure is required by law (including but not limited to the SEC, USPTO, and pursuant to a subpoena); provided, however that before making such disclosure, the Party about to make such disclosure shall seek the highest level of protection available and give the other Party an adequate opportunity to interpose an objection or take action to assure confidential handling of such information.
|
9.
|
WARRANTY; LIMITATION OF LIABILITY
|
9.1
|
By IMI
|
9.2
|
By Customer
|
9.3
|
Limited Warranty on Equipment
|
9.4
|
Limited Warranty on Informatics Software
|
9.5
|
Exclusions
|
9.6
|
Disclaimer
|
10.
|
LIMITATION OF LIABILITY
|
10.1
|
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AND EXCEPT FOR ANY BREACH OF ANY CONFIDENTIALITY OBLIGATION UNDER THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY OR ITS AFFILIATES BE LIABLE TO THE OTHER PARTY, ITS AFFILIATES OR TO ANYTHIRD PARTY CLAIMING THROUGH OR UNDER THE OTHER PARTY HERETO, FOR ANY LOST PROFITS, LOST REVENUE, LOSS OF DATA, EQUIPMENT DOWNTIME OR FOR ANY SPECIAL, CONSEQUENTIAL
, INDIRECT OR INCIDENTAL DAMAGES, HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY (INCLUDING CONTRACT, STRICT LIABILITY, NEGLIGENCE OR OTHER LEGAL OR EQUITABLE THEORY) ARISING IN ANY WAY OUT OF
THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
|
10.2
|
EXCEPT FOR IMI’S OBLIGATIONS IN SECTION 11 OR A BREACH OF A CONFIDENTIALITY OBLIGATION, IN NO EVENT SHALL EITHER PARTY’S CUMULATIVE LIABILITY TO THE OTHER UNDER THIS AGREEMENT EXCEED THE AMOUNTS RECEIVED BY SUCH PARTY FROM THE OTHER PARTY IN THE PAST TWELVE (12) MONTHS PRECEDING THE CLAIM.
|
10.3
|
IN THE EVENT OF CUSTOMER’S BREACH OF LICENSES GRANTED BY IMI UNDER THIS AGREEMENT, CUSTOMER’S CUMULATIVE LIABILITY TO IMI FOR SUCH BREACH SHALL NOT EXCEED TWO MILLION DOLLARS (U.S. $2,000,000).
|
10.4
|
IN ADDITION, COMPANY ACKNOWLEDGES AND AGREES THAT AS BETWEEN THE PARTIES, COMPANY SHALL NOT BE LIABLE FOR ANY PRODUCT LIABILITY CLAIMS RESULTING FROM THE MANUFACTURE, SALE OR USE OF ANY PRODUCTS DEVELOEPD AS A RESULT OF MATERIALSTHAT COMPANY USES, MAKES OR SELLS.
|
10.5
|
The Parties acknowledge and agree that the foregoing limitations of liability are an essential element of this agreement and that in their absence the terms of this agreement would be substantially different.
|
11.
|
INDEMNIFICATION
|
11.1
|
Promise
|
11.2
|
Conditions
|
11.3
|
Obligation
|
11.4
|
Exclusions
|
11.5
|
Limitation of liability
|
11.6
|
Sole and Exclusive Remedy
|
12.
|
TERM AND TERMINATION
|
12.1
|
Term
|
12.2
|
Termination for Breach
|
12.3
|
Effect of Termination
|
12.4
|
Survival
|
13.
|
MISCELLANEOUS
|
13.1
|
Amendment
|
13.2
|
No Implied License
|
13.3
|
Assignment
|
13.4
|
Drafting
|
13.5
|
Governing Law
|
13.6
|
Venue
|
13.7
|
Dispute Resolution
|
13.8
|
Independent Contractors
|
13.9
|
Compliance with Laws
|
13.10
|
Notices
|
13.11
|
Captions
|
13.12
|
Counterparts
|
13.13
|
Signatures by Electronic Mail or Facsimile
|
13.14
|
Copies
|
13.15
|
Non-waiver
|
13.16
|
Severability
|
13.17
|
Publicity; Disclosure of Agreement
|
13.18
|
Force Majeure
|
13.19
|
Third Party Beneficiaries
|
13.20
|
Integration
|
13.21
|
R
epresentation by Legal Counsel
|
14.
|
INSURANCE.
|
14.1
|
Statutory Workers’ Compensation Insurance covering all persons employed by IMI engaged in the CDP Project, including employers liability coverage, with minimum limits of at least one million dollars ($1,000,000) per accident and one million dollars ($1,000,000) per disease or whatever limit is required by law, whichever is higher.
|
14.2
|
Commercial General liability (CGL) coverage with minimum limits of at least two million dollars ($2,000,000) per occurrence, CGL for bodily injury, personal injury, property damage and products and completed operation liability.
|
14.3
|
Excess liability limits of two million dollars ($2,000,000) per occurrence, excess of underlying general liability and Workers’ compensation.
|
14.4
|
All policies listed herein 13.22(with the exception of those pertaining to employers liability coverage are required to be on a per occurrence policy limit.
|
14.5
|
All policies must be issued by an insurer with an A.M. Best rating of at least “A-.”
|
14.6
|
Within thirty (30) days of the Effective Date, IMI shall provide to Company a certificate of insurance for all insurance required in this subsection. Each such certificate shall contain a provision for thirty (30) days’ advance notice of all policy changes, including without limitation, cancellation. If a policy is changed or canceled, IMI shall deliver to Company renewal or replacement certificates within thirty (30) days prior to expiration or change of any such insurance. Any coverage provided under these policies to Company would be primary to any other coverage available to Company. Notwithstanding, the failure to provide certificates in accordance with this Section shall not release IMI in any manner of any liability established under this Agreement.
|
15.
|
COMPLIANCE WITH LAWS.
|
15.1
|
Compliance with Securities Laws. IMI agrees that certain of the information provided by Company to IMI hereunder may be “material, nonpublic information” for purposes of federal or state securities laws, the awareness of which prohibits IMI and its employees, contractors, representatives and agents from (i) buying or selling Company’s securities (stock, options, etc.) (i.e., “insider trading”) and (ii) passing information to anyone who may buy or sell Company’s securities (i.e., “tipping”), until after the information has been disclosed to the public and absorbed by the market. Without limiting any of IMI’s other obligations under this Agreement, IMI will comply with all federal and state securities laws prohibiting insider trading and tipping, and shall immediately notify Company in the event of any insider trading or tipping by IMI or its employees, contractors, representatives or agents of which it becomes aware.
|
15.2
|
In accordance with the requirements of the Foreign Corrupt Practices Act of the United States (15 U.S.C. § 78dd-1 and 2) (“FCPA”), IMI agrees and warrants that it shall not make, offer, promise or authorize any payment, loan, gift, donation or other giving of money or things of value, directly or indirectly, whether through IMI, its affiliates, partners, officers, employees, agents or representatives, whether in cash or kind, and whether pursuant to a written agreement, to or for the use of any government official, any political party or official thereof or any candidate for political office, for the purpose of influencing or inducing any official act or decision in order to further the activities contemplated by this Agreement, including obtaining or retaining any government approval or funding related to such activities. IMI acknowledges that in entering into this Agreement, Company has relied upon IMI’s representation and warranty that it will strictly comply with the FCPA, and IMI agrees that if it violates the FCPA in the course of performing the activities enumerated in this Agreement, Company may immediately upon notice to IMI terminate this Agreement.
|
15.3
|
EICC Compliance. IMI hereby (a) acknowledges and understands that Company requires its suppliers and consultants to adopt the Electronic Industry Code of Conduct (the “EICC”), as promulgated by the Electronic Industry Citizenship Coalition, and (b) agrees to implement and ascribe to the EICC during the term of this Agreement. The EICC may be viewed at
.
|
Intemolecular, Inc.
3011 North 1 st Street San Jose, CA 95134 |
Date: February 4, 2013
Quotation: 20130204001
|
To: First Solar Inc.
28101 Cedar Park Blvd., Perrysburg, OH 43551 |
|
Description:
|
Price
|
Quantity
|
Total
|
1. Equipment including
[***]
|
[***]
|
[***]
|
[***]
|
2. HPC Site License Fees
[***]
|
[***]
|
[***]
|
[***]
|
3. Informatics Software License Fees
[***]
|
[***]
|
[***]
|
[***]
|
4. Warranty & Support Fees
[***]
|
[***]
|
[***]
|
[***]
|
1 Introduction
|
|
1.1 Purpose
|
|
1.2 Scope
|
|
2 System Configuration and Specifications for acceptance
|
|
2.1 Configuration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18.1
|
Safety
|
A.
|
Press the EMO buttons and verify that the system shuts down immediately.
|
B.
|
Test that the interlocks work appropriately:
|
18.2
|
Wafer Handling Test
|
i.
|
Source Inspection:
|
18.2.11.i.1.
|
Load 25 dummy wafers in a FOUP.
|
18.2.11.i.2.
|
Load the FOUP with 25 wafers onto the first Load Port.
|
18.2.11.i.2.1.
|
Click the ‘Map’ Button on the Platform Main UI, this will load and map the FOUP.
|
18.2.11.i.2.2.
|
Once mapped, a pop-up will appear on the screen; do not enter wafer names. Click ‘OK’.
|
18.2.11.i.3.
|
Execute a sequence without a recipe specified for each wafer such that one chamber is cycled; this sequence will be executed 4 times for each FOUP.
|
18.2.11.i.4.
|
The wafer will be removed from the chamber and transferred back to the FOUP.
|
18.2.11.i.5.
|
Repeat for each load port.
|
18.2.11.i.6.
|
F. Repeat for each chamber, after changing wafers.
|
ii.
|
On Site Check:
|
18.2.11.ii.1.
|
Load 25 dummy wafers in a FOUP.
|
18.2.11.ii.2.
|
Load the FOUP with 25 wafers onto the first Load Port.
|
18.2.11.ii.2.1.
|
Click the ‘Map’ Button on the Platform Main UI, this will load and map the FOUP.
|
18.2.11.ii.2.2.
|
Once mapped, a pop-up will appear on the screen; do not enter wafer names. Click ‘OK’.
|
18.2.11.ii.3.
|
Execute a sequence with the chamber specific mechanical recipe specified for each wafer such that one chamber is cycled; this sequence will be executed 2 times.
|
18.2.11.ii.4.
|
The wafer will then be removed from the chamber and transferred back to the FOUP.
|
18.2.11.ii.5.
|
Repeat for each load port.
|
18.2.11.ii.6.
|
Repeat for each process chamber, after changing wafers.
|
Chamber Type
|
Chamber Number
|
|
|
|
|
|
|
18.3
|
Base Pressure Verification
|
18.4
|
Bake Out Verification
|
A.
|
Ensure the platform is under high vacuum, with the [***] on, and the [***] open.
|
B.
|
Ensure all bake out circuit breakers are turned off on the [***].
|
C.
|
Open the PDU door and turn on the circuit breaker for ‘M2 Heater’.
|
D.
|
Turn on the circuit breakers for the [***].
|
E.
|
Push the start button and verify a temperature increase from ambient.
|
F.
|
After bake out verification, press the stop button and turn off all circuit breakers on the [***].
|
G.
|
Allow to cool by placing fans around the platform (if available).
|
19.
|
ACCEPTANCE CHECKLIST
|
4.1 Safety
|
Requirement
|
Actual Value (if applicable)
|
Source Check
|
Actual Value (if applicable)
|
On-Site Check
|
Test the EMO switches
|
EMO safely shuts down the system
|
N/A
|
|
N/A
|
|
Interlock Testing
|
Verify all interlocks work as designed
|
N/A
|
|
N/A
|
|
4.2 Wafer Transfers
|
Requirement
|
Actual Value (if applicable)
|
Source Check
|
Actual Value (if applicable)
|
On-Site Check
|
Wafers cycled w/o tool faults
|
4 Cycles.
|
N/A
|
|
N/A
|
N/A
|
Wafers cycled w/o tool faults
|
2 Cycles
|
N/A
|
N/A
|
N/A
|
|
4.3 Base Pressure Verification
|
Requirement
|
Actual Value (if applicable)
|
Source Check
|
Actual Value (if applicable)
|
On-Site Check
|
Functional Check
|
[***]
|
|
|
|
|
4.4 Bake Out Verification
|
Requirement
|
Actual Value (if applicable)
|
Source Check
|
Actual Value (if applicable)
|
On-Site Check
|
Functional Check
|
Run bake out to verify a continuous temp rise
|
N/A
|
|
N/A
|
|
20.
|
ACCEPTANCE SIGNATURES
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
2.1
|
Configuration
|
[***]
|
Type
|
Quantity
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
3 Each
|
[***]
|
[***]
|
2 Each
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
1 Each
|
[***]
|
[***]
|
1 Each
1 Each 1 Each 1 Each |
[***]
|
[***]
|
1 Each
|
2.2
|
[***] Process Recipe:
|
2.3
|
Properties for [***] Process Recipe
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
2.4
|
Site-to-Site Repeatability [***] Process Recipe
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
3.2
|
Wafer Transfer Module Wafer Cycling
|
3.3
|
New Target Burn-In with New Process Kit, (to be performed before process tests).
|
20.1.1.
|
Ensure chamber pressure is [***] before performing the [***] target burn-in sequence as follow for each of the four cathodes.
|
3.4
|
[***] Deposition Process Repeatability
|
A.
|
For each gun, run [***] site-isolated depositions using the BKM recipe in the following locations.
|
4.1 Safety
|
Requirement
|
Actual Value
(if applicable)
|
Source Check
|
Actual Value (if applicable)
|
On-Site Check
|
[***]
|
[***]
|
N/A
|
|
N/A
|
|
[***]
|
[***]
|
N/A
|
|
N/A
|
|
[***]
|
[***]
|
Actual Value
(if applicable
|
Source
Check
|
Actual Value
(if applicable)
|
On-Site
Check
|
[***]
|
[***]
|
N/A
|
|
N/A
|
|
[***]
|
[***]
|
Actual Value
(if applicable
|
Source
Check
|
Actual Value
(if applicable)
|
On-Site
Check
|
[***]
|
[***]
|
|
|
|
|
[***]
|
[***]
|
|
|
|
|
[***]
|
[***]
|
|
|
|
|
[***]
|
[***]
|
|
|
|
|
[***]
|
[***]
|
Actual Value
(if applicable
|
Source
Check
|
Actual Value
(if applicable)
|
On-Site
Check
|
[***]
|
[***]
|
|
|
|
|
[***]
|
[***]
|
|
|
|
|
[***]
|
[***]
|
|
|
|
|
[***]
|
[***]
|
|
|
|
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Parameter
|
Nominal Values
|
Unit
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Gauge Name
|
Location
|
Description
|
Min Purity level
|
Recommended Set point
|
Acceptance Check (actual)
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
|
4.1 Safety
|
Requirement
|
Actual Value (if applicable)
|
Source Check
|
Actual Value (if applicable)
|
On-Site Check
|
Test the gas box EMO switch
|
EMO safely shuts down the chamber.
|
N/A
|
|
N/A
|
|
Test interlock
|
Verify interlocks work as designed
|
N/A
|
|
N/A
|
|
4.2 Wafer Transfer Module Wafer Cycling
|
Requirement
|
Actual Value (if applicable
|
Source Check
|
Actual Value (if applicable)
|
On-Site Check
|
Wafers cycled w/o tool faults
|
See the mainframe acceptance document.
|
N/A
|
|
N/A
|
|
4.3 Facilities Gas Set Points
|
Requirement
|
Actual Value (if applicable
|
Source Check
|
Actual Value (if applicable)
|
On-Site Check
|
Confirm required set points
|
N/A
|
N/A
|
|
N/A
|
|
4.4 Chamber conditioning
|
Requirement
|
Actual Value (if applicable
|
Source Check
|
Actual Value (if applicable)
|
On-Site Check
|
Verify RPS function
|
RPS operates without error
|
N/A
|
N/A
|
N/A
|
|
Ran the conditioning recipe w/o faults on the chamber
|
Five wafers processed w/o tool faults
|
N/A
|
N/A
|
N/A
|
|
4.5 Chamber process qualification & repeatability
|
Requirement
|
Actual Value (if applicable
|
Source Check
|
Actual Value (if applicable)
|
On-Site Check
|
Recipe ran all steps successfully
|
Recipe will perform all steps w/o error on 3 wafers
|
N/A
|
N/A
|
N/A
|
|
Full wafer Qualification specification
|
[***]
|
N/A
|
N/A
|
|
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
Name
|
Title
|
Signature
|
|
Date
|
(a)
|
IMI shall maintain the Equipment in accordance with the warranty set forth in the Agreement.
|
(b)
|
Services may also include scheduled preventative maintenance, as determined by IMI.
|
(c)
|
Maintenance will include replacement of parts deemed necessary by IMI. Customer shall inform IMI if any replaced parts may be contaminated with hazardous or toxic materials. All parts may be furnished on an exchange basis and will be new or equivalent to new. Replaced parts removed from the Equipment shall, at IMI’s sole option, become the property of IMI. All customer consumable items, including but not limited to wafers, vials, chemicals, are excluded from coverage hereunder.
|
(d)
|
Exclusions: Maintenance service is contingent upon the proper use of the Equipment , and does not cover Equipment that has been damaged, modified (unless approved in writing by IMI), or altered. IMI shall be under no obligation to furnish maintenance service if
|
i.
|
adjustment, repair or parts replacement is required because of operator-caused error or misuse of Equipment;
|
ii.
|
the Equipment is repaired or if attempts to repair or service the equipment are made by other than authorized IMI personnel, without the prior written approval of IM;
|
iii.
|
a non-conformity results from or after relocation of the Equipment without prior written approval of IMI, which shall not be unreasonably withheld, unless Customer can demonstrate by clear and convincing evidence that the relocation did not cause the non-conformity;
|
iv.
|
the Equipment is damaged through the use of hardware consumables that IMI has not previously recommended or approved, unless Customer can demonstrate by clear and convincing evidence that the use of such consumables did not cause the damage.
|
(e)
|
Customer shall provide full and free access to the Equipment as needed to perform any services to be provided hereunder, subject to Customer’s reasonable policies and procedures.
|
a)
|
On behalf of yourself and your executors, administrators, heirs and assigns, you hereby release and forever discharge the “Releasees” hereunder, consisting of the Company, and each of its owners, directors, officers, managers, employees, agents and insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which you now have or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof, including, without limiting the generality of the foregoing, any Claims arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever your employment by the Company or the termination thereof, including without limitation any and all claims arising under federal, state, or local laws relating to employment, claims of any kind that may be brought in any court or administrative agency, any claims arising under the Age Discrimination in Employment Act ("ADEA"), as amended, 29 U.S.C. § 621,
et seq
.; the Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, 42 U.S.C. § 2000
et seq.
; the Equal Pay Act, as amended, 29 U.S.C. § 206(d); the Civil Rights Act of 1866, 42 U.S.C. § 1981; the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601
et seq.
; the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101
et seq.
; the False Claims Act , 31 U.S.C. § 3729
et seq.
; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001
et seq
.; the Worker Adjustment and Retraining Notification Act, as amended, 29 U.S.C. § 2101
et seq
. the Fair Labor Standards Act, 29 U.S.C. § 215
et seq.
, the Sarbanes-Oxley Act of 2002;
the California Fair Employment and Housing Act; the California Family Rights Act; the California Labor Code; California Business & Professions Code Section 17200; Claims for breach of contract; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees. Notwithstanding the generality of the foregoing, you do not release any claims that cannot be released as a matter of law including, without limitation, claims for indemnity under the California Labor Code and your right to bring to the attention of the Equal Employment Opportunity or California Department of Fair Employment and Housing claims of discrimination; provided, however, that you do release your right to secure damages for any alleged discriminatory treatment.
|
b)
|
YOU ACKNOWLEDGE THAT YOU HAVE BEEN ADVISED OF AND ARE FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:
|
c)
|
In accordance with the Older Workers Benefit Protection Act of 1990, you acknowledge that you are aware of the following:
|
a)
|
During the course of your employment you did not sustain any injuries for which you might be entitled to compensation pursuant to worker’s compensation law;
|
b)
|
You have not made any disparaging comments about the Company; and
|
c)
|
You have not initiated any adversarial proceedings of any kind against the Company or against any other person or entity released herein, nor will you do so in the future, except as specifically allowed by this Agreement.
|
Date: May 2, 2013
|
|
/s/ DAVID E. LAZOVSKY
|
|
|
David E. Lazovsky
President and Chief Executive Officer
|
•
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
•
|
The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
By:
|
|
/s/ DAVID E. LAZOVSKY
|
|
||
|
|
Name:
|
|
David E. Lazovsky
|
|
|
|
Title:
|
|
President and Chief Executive Officer
|
|
Date: May 2, 2013
|
|
/s/ PETER L. EIDELMAN
|
|
|
Peter L. Eidelman
Chief Financial Officer
|
•
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
•
|
The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
By:
|
|
/s/ PETER L. EIDELMAN
|
|
||
|
|
Name:
|
|
Peter L. Eidelman
|
|
|
|
Title:
|
|
Chief Financial Officer
|
|