Exhibit 10.35
MASTER JOINT TECHNOLOGY
DEVELOPMENT AGREEMENT
This Master Joint Technology
Development Agreement (this “Agreement”) is entered
into as of October 15, 2002 (the “Effective Date”) by
and between Newport Fab, LLC doing business as Jazz Semiconductor,
a Delaware limited liability company having an office at 4321
Jamboree Road, Newport Beach, California (“Jazz”), and
RF Micro Devices, Inc., a North Carolina corporation having an
office at 7628 Thorndike Road, Greensboro, North Carolina 27409
(“RFMD” and together with Jazz hereinafter jointly
referred to as the “Parties” or individually as a
“Party”).
WHEREAS, RFMD owns certain valuable
and confidential technology useful for the design and manufacture
of integrated circuits for wireless communications applications;
and
WHEREAS, Jazz owns certain valuable
and confidential technology useful for the design and manufacture
of integrated circuits for wireless and wireline communications
applications and operates a semiconductor wafer fabrication
facility located in Newport Beach, California; and
WHEREAS, Jazz and RFMD desire to
cooperate with each other on development projects to jointly design
and develop advanced silicon integrated circuit devices and new
silicon wafer manufacturing processes; and
NOW, THEREFORE, in consideration of
the promises and mutual covenants herein contained, the Parties
agree as follows:
1.
DEFINITIONS
Capitalized terms used herein and
not otherwise defined shall have the following meanings:
1.1
“CA Team”
is defined in
Section 2.4.
1.2
“Risk Production
“ means that a particular
silicon wafer fabrication process has established baseline in terms
of process recipes, device models, and design kits, and has passed
standard wafer level reliability tests.
1.3
“Confidential
Information” shall mean Jazz Confidential
Information and/or RFMD Confidential Information, and shall include
this Agreement, each SOW and the MOU.
1.4
“Design”
shall mean the
electrical design, layout, schematics, diagrams, specifications and
bill of materials for any IC covered by a SOW and the production
photomasks and other production tooling for the ICs.
Confidential treatment is being requested for
portions of this document. This copy of the document filed as
an exhibit omits the confidential information subject to the
confidentiality request. Omissions are designated by the
symbol [...***...]. A complete version of this document has
been filed separately with the Securities and Exchange
Commission.
1.5
“Fab”
shall mean the
facility and associated assets owned by Jazz, and used by Jazz to
provide specialty process foundry services and to manufacture
semiconductor wafers, located in Newport Beach,
California.
1.6
“Foreground”
shall mean all
inventions, discoveries, improvements, designs, information, data,
methods, techniques, drawings, component board models, layouts,
schematics, diagrams, functional blocks, cells, design rules,
simulation models, net lists, software, test protocols, methods and
patterns and other technology developed during the course of Work
under a SOW, whether or not patentable, including all Intellectual
Property Rights embodied therein.
1.7
“IC” shall mean an integrated
circuit or other semiconductor device that performs electrical
functions, including associated substrates, circuit elements,
embedded passive elements, packaging, housing and other means of
function and support.
1.8
“Intellectual Property
Rights” shall mean all patents and
all patent applications (including, without limitation, originals,
divisions, continuations, continuations-in-part, CPA’s,
RCE’s, provisional, extensions or reissues), design rights
(whether registered or not and all applications for the foregoing),
copyrights, database rights, topography rights, mask work rights,
applications to register any of the aforementioned rights, trade
secrets, rights in unpatented know-how, rights of confidence and
any other intellectual or industrial property rights of any nature
whatsoever in any part of the world.
1.9
“Jazz Background”
shall mean the
inventions, trade secrets, know-how, designs, information, data,
processes, methods, techniques, drawings, component board models,
layouts, schematics, diagrams, functional blocks, cells, design
rules, simulation models, net lists, software, test protocols,
methods and patterns and other technology owned or used, as at the
effective date of a SOW, by Jazz and which Jazz may use or provide
to RFMD in the performance of Work under such SOW including all
Intellectual Property Rights embodied therein.
1.10
“Jazz Confidential
Information” shall mean all information
identified by Jazz as confidential and disclosed by Jazz to RFMD
under the MOU, this Agreement or any SOW.
1.11
“Jazz Non-Process
Background” shall mean Non-Process
Background that is owned or used, as at the effective date of a
SOW, by Jazz and which Jazz uses or provides to RFMD in the
performance of Work under such SOW including all Intellectual
Property Rights embodied therein.
1.12
“MOU”
shall mean the
nonbinding Memorandum of Understanding dated June 26, 2002,
between the Parties.
1.13
“Non-Process
Background” shall mean all Jazz
Background and all RFMD Background other than Process
Background.
1.14
“Non-Process
Foreground” shall mean all Foreground
other than Process Foreground.
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1.15
“Person”
shall mean any
individual, corporation, partnership, joint venture, trust,
business association, governmental entity or other
entity.
1.16
“Process”
shall mean the
semiconductor manufacturing technology used at the Fab to fabricate
ICs and other semiconductor products, including variants of such
technology used to manufacture CMOS, Bipolar, BiCMOS, SiGe and
other devices, as the same is revised or updated from time to time
under this Agreement or otherwise.
1.17
“Process
Foreground” shall mean Foreground related
to or constituting an improvement, modification, revision,
iteration or other adaptation of the Process and any Foreground
related to or constituting a new Process.
1.18
“Prototype”
shall mean a
preliminary version of an IC fabricated by Jazz on behalf of RFMD
under a SOW, which is intended for evaluation, testing,
characterization and tuning and which may or may not be
functional.
1.19
“RFMD Background”
shall mean the
inventions, trade secrets, know-how, designs, information, data,
processes, methods, techniques, drawings, component board models,
layouts, schematics, diagrams, functional blocks, cells, design
rules, simulation models, net lists, software, test protocols,
methods and patterns and other technology owned or used, as at the
effective date of a SOW, by RFMD and which RFMD may use or provide
to Jazz in the performance of Work under such SOW including all
Intellectual Property Rights embodied therein.
1.20
“RFMD Confidential
Information” shall mean all information
identified by RFMD as confidential and disclosed by RFMD to Jazz
under the MOU, this Agreement or any SOW.
1.21
“RFMD Process
Background” shall mean the semiconductor
manufacturing processes owned or used, as at the effective date of
a SOW, by RFMD and which RFMD uses or provides to Jazz in the
performance of Work under such SOW including all Intellectual
Property Rights embodied therein.
1.22
“SOW”
shall mean the
separate Statements of Work to be agreed by the Parties from time
to time regarding specific development projects agreed to be
undertaken by them. Each SOW will be executed by both Parties and
will specify the tasks and Work to be performed by each Party, the
contributions of engineering and design resources, equipment,
supplies, capital and other resources to be made by each Party, the
deliverables, Prototypes and other work product to be generated,
the development schedule and key milestones, the roles and
responsibilities of the Parties to complete the development, the
exclusivity, marketing, manufacturing and distribution rights of
the Parties, any royalty obligations of the Parties and such other
matters as the Parties may agree.
1.23
“Subsidiary”
shall mean a
corporation, company or other entity:
(a)
more than fifty percent (50%) of
whose outstanding shares or securities (representing the right to
vote for the election of directors or other managing authority)
are, now or hereafter, owned or controlled, directly or indirectly,
by a Party hereto, but such corporation,
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company or other entity shall be deemed to be a
Subsidiary only so long as such ownership or control exists;
or
(b)
which does not have outstanding
shares or securities, as may be the case in a partnership, joint
venture or unincorporated association, but more than fifty percent
(50%) of whose ownership interest representing the right to make
the decisions for such partnership, joint venture, association or
other entity is now or hereafter, owned or controlled, directly or
indirectly, by a Party hereto, but such partnership, joint venture,
association or other entity shall be deemed to be a Subsidiary only
so long as such ownership or control exists.
1.24
“Work”
shall mean the
work carried out under this Agreement or under a SOW.
2.
SCOPE
OF COOPERATION
2.1
During the term
of this Agreement, the Parties will work together in a mutually
beneficial and cooperative fashion in order to develop advanced
semiconductor products, develop new and improved semiconductor
manufacturing processes and ICs and create mutually beneficial
technological solutions. Each joint development project undertaken
by the Parties will be covered by a separate SOW, which shall set
forth in reasonable detail the tasks and Work to be performed by
each Party, the contributions of employee resources, equipment,
supplies, capital, RFMD Background, Jazz Background and other
intellectual property and resources to be made by each Party, the
deliverables, including the hardware and software, reference
designs, technical papers, Prototypes and other work product to be
generated from the Work, the payments (if any) to be made by the
Parties to each other for non-recurring engineering services, the
development schedule and key milestones for the Work and the roles
and responsibilities of the Parties with respect to the
manufacture, marketing, promotion, advertisement,
commercialization, distribution and sale of products created under
or resulting from Work under the SOW. Each SOW will describe each
Party’s participation in the evaluation, characterization,
testing and debugging of Prototypes.
2.2
Each Party agrees
to use commercially reasonable efforts to perform its
responsibilities under each SOW and to allocate sufficient
resources to complete the Work in accordance with the relevant
specifications and development schedule set forth in such SOW. In
the event resource constraints are preventing a timely completion
of milestones or Work under a SOW, each Party will make
commercially reasonable efforts to address the constraints to
ensure completion of the project within the project timeline. To
the extent permitted under its existing contractual obligations,
each Party will disclose to the other Confidential Information that
is relevant to the other in completing Work under a SOW, including
all relevant Background necessary to complete the SOW. Either Party
may propose changes or modifications to a SOW. Both Parties will
timely review any proposed changes to a SOW and will identify
impacts of such changes on the development schedule, cost and
deliverables under the SOW. Any agreed changes shall be described
in a written amendment to the SOW executed by the
Parties.
2.3
This Agreement
shall serve as an overall framework with respect to the joint
technology developments of the Parties, and it contains general
principles regarding the Parties’ responsibilities, cost
sharing and ownership and use of Intellectual Property Rights and
Foreground applicable to all projects undertaken under an SOW by
the Parties, which principles
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may be modified on a
project-by-project basis in the SOW, provided such modifications
are signed by both Parties. The initial SOW will be negotiated by
the Parties as soon as practical after the Effective Date.
Additional SOWs may follow from time to time as agreed by the
Parties.
2.4
RFMD will create
two silicon technology development teams, one of which will be
located at RFMD’s principal offices and one of which will be
located at the Fab (the “CA Team”). RFMD will consult
with appropriate personnel at Jazz regarding hiring of personnel
for the CA team. The Parties may assign, on a permanent or
temporary basis, one or more Jazz employees to the CA Team as
agreed by the Parties. As of the Effective Date, it is estimated
that the CA Team will consist of approximately seven individuals by
the end of 2003. All persons assigned to the CA Team will devote
substantially all their efforts to technology development projects
under this Agreement and agree to sign a Non-Disclosure Agreement
in a form mutually acceptable to the Parties. The CA Team will
report to Jazz’s Integration Manager, under the supervision
of Jazz’s Director of Research & Development, with
secondary reporting to RFMD’s Director of Research &
Development. Unless otherwise agreed by the Parties, all members of
the CA Team will be employees of RFMD and RFMD will be solely
responsible for payment of all salaries, benefits and other
compensation and deposit of all income, unemployment, FICA and
other taxes with respect to such persons. The CA Team will abide
by, and be subject to any and all Jazz Security and Safety
Policies.
2.5
Jazz will provide
the CA Team with office and lab space, office and communications
equipment, personal computers and software, supplies and
administrative and technical support. Jazz will bill RFMD monthly
for such services at a rate to be mutually agreed to cover
Jazz’s standard cost of providing such facilities and
services. To the extent reasonably necessary, Jazz will make
available its existing Process technology, engineering personnel
and other resources only as provided in each SOW at a rate to be
mutually agreed upon within the SOW. Jazz will also provide,
without charge, sufficient access to its Fab, test equipment,
computer-aided design systems, laboratories and other facilities
and associated equipment to enable the CA Team to complete Work
under each SOW. All projects involving Process developments will
follow standard development procedures implemented by Jazz, and the
actual Process development function will continue to be the primary
responsibility of Jazz’s process engineers. Jazz will allow
the CA Team to participate in all relevant meetings and discussions
concerning Process developments covered by a SOW and to engage in
all related aspects of Process development, including process
design, starting and monitoring wafer lots, device
characterization, modeling and testing, except to the extent
related to or involving third party confidential
information.
2.6
In the event a
member of the CA Team discloses to RFMD confidential information
regarding Jazz, or Jazz customers, other than in connection with a
SOW or this Agreement, RFMD agrees to promptly notify Jazz of such
disclosure and to take appropriate reasonable action regarding such
member of the CA Team. In the event an employee of Jazz or any
other person with access to the Fab discloses to Jazz confidential
information regarding RFMD, or RFMD customers, other than in
connection with a SOW or this Agreement, Jazz agrees to promptly
notify RFMD of such disclosure and to take appropriate reasonable
action regarding such person. Nothing contained in this Section 2.6
shall limit the rights and obligations of the Parties under Section
3 of this Agreement. The Parties acknowledge and agree
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that the notices provided
under this Section 2.6 shall not be an admission of any breach
under Section 3 or any other provision of this Agreement, and
neither the fact nor substance of such notice shall be admissible
as evidence against the notifying Party.
2.7
Both Parties
agree not to directly or actively recruit, divert or solicit the
employment of either Party’s employees during the term of
this Agreement and for a period of twelve (12) months
thereafter.
2.8
Each SOW will
address any exclusivity provisions with respect to the development,
manufacturing and marketing of any products resulting from the Work
under each SOW. If exclusivity is not specifically addressed in a
SOW, then subject to the other terms of this Agreement, the
following exclusivity provisions shall prevail:
2.8.1
RFMD shall
exclusively own all Non-Process Foreground, including the Design of
all ICs fabricated for it at the Fab, and shall retain the
exclusive right to make, have made, use, import, market, offer for
sale and sell ICs based on or derived, in whole or in part, from
such Designs. RFMD may not use the improved Process Foreground
fully funded by RFMD under Section 2.8.3, for manufacturing at any
internal or foundry site other than a Jazz site, until
[. . . *** . . .] from the Risk
Production at the Fab of such new or improved Process, and RFMD
agrees that if RFMD asserts “have made” rights under
this Section 2.8.1 at a location other than a Jazz location
thereafter, RFMD shall do so only in full accordance with
RFMD’s obligation to give JAZZ the first right of refusal to
supply all RFMD silicon demand, provided JAZZ is competitive in
pricing, technology, quality and delivery, as set forth in the
Wafer Supply Agreement entered into between RFMD and JAZZ
contempor
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