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Exhibit 10.10
EXECUTION COPY
CROSS LICENSE AGREEMENT
This CROSS LICENSE AGREEMENT (this " Agreement "), dated
as of April , 2006 (the "
Effective Date "), is entered into by and between Texas
Instruments Incorporated, a Delaware corporation (" Seller
"), and Sensata Technologies B.V., a Dutch limited liability
company, formerly known as Potazia Holding B.V., assignee of
S&C Purchase Corp. (" Buyer ") (each a " Party "
and collectively, the " Parties ").
Terms that are not defined in this Agreement shall have the
meaning set forth in the Purchase Agreement (as defined below).
W I T N E S S E T H
:
WHEREAS, pursuant to an Asset and Stock Purchase Agreement dated
as of January 8, 2006 (the " Purchase Agreement "),
Buyer is acquiring from Seller and its Subsidiaries the Shares and
the Purchased Assets including ownership of certain Intellectual
Property Rights;
WHEREAS, Seller and its Subsidiaries are retaining ownership of
certain Intellectual Property Rights;
WHEREAS, the Purchase Agreement contemplates that each Party
shall grant the other Party a license to use certain technology
used in connection with such other Party’s business; and
WHEREAS, each Party is willing to grant the licenses
contemplated in the Purchase Agreement upon the terms and subject
to the conditions set forth in this Agreement;
NOW THEREFORE, the Parties agree as follows:
ARTICLE 1
D EFINITIONS
Section 1.01 . Definitions. (a) The
following terms, as used herein, have the following meanings:
" Announcement Date " means January 8, 2006.
" Buyer Activities " means the design, development, use
and distribution of (i) design, automation, application or
other software embodied in or operating on or in any way relating
to the manufacture, or use of, any Buyer Product and
(ii) services, application notes, reference designs, and
marketing materials directly relating to the sales, marketing or
use of any Buyer Product.
" Buyer Core Business Technology " means (i) ceramic
capacitive sensing, (ii) microfused silicon strain gauges,
(iii) monometal and bimetal snap acting actuators,
(iv) low level arc detection, (v) metal oxide silicon
sensor, and (vi) a self-regulating heater or current limiter
that (A) is an electromechanical product,
(B) incorporates positive temperature coefficient materials
based on doped barium titanate chemistry, and (C) responds to
temperature with increased resistance, or when energized with
current generates heat at a self-regulating point.
" Buyer Information " means the know-how
and trade secrets owned or licensable by any Buyer Party that any
Seller Party has in its possession as of the Effective Date (so
long as such know-how and trade secrets have been used by any
Seller Party other than in connection with the Business prior to
the Effective Date), excluding any Exclusive Buyer
Information.
" Buyer License " means the rights granted by Seller to
Buyer pursuant to Section 2.01.
" Buyer Party " means Buyer and/or any of its Permitted
Subsidiaries.
" Buyer Patents " means all Patents now or hereafter
owned or licensable by any Buyer Party with a Priority Date prior
to the Effective Date.
" Buyer Product " means any (i) Sensor Product,
(ii) Control Product, (iii) Core Business Technology
Product, and (iv) any software marketed by Buyer for use in
conjunction with any of the foregoing. Notwithstanding the
foregoing, Buyer Product does not include any Semiconductor
Product, except (A) any Semiconductor Product that
incorporates arc fault circuits as a functionally and commercially
significant part thereof and/or (B) any Semiconductor Product
that is a functionally and commercially significant part of a
Sensor Product, a Control Product, or a Core Business Technology
Product, provided that such Core Business Technology Product also
includes at least one functionally and commercially significant
component which is not a Semiconductor Product.
" Confidential Information " means all Seller Information
and Buyer Information (and all other trade secrets of the Retained
Business or the Business that the receiving Party has in its
possession as of the Effective Date that are not licensed
hereunder) without the need for any further notice or marking,
together with any confidential or proprietary information exchanged
between the Parties after the Effective Date pursuant to this
Agreement (it being understood that if any such confidential or
proprietary information exchanged after the Effective Date is
disclosed pursuant to a non-disclosure agreement, then the terms of
such non-disclosure agreement shall govern the disclosure of such
information), excluding any information that: (i) the
receiving Party independently develops (in the case of Seller,
within any of the Retained Businesses and in the case of Buyer,
within the Business) without reference to the disclosed
information; (ii) the receiving Party independently receives
(in the case of Seller, other than from the Business and in the
case of Buyer, other than from any of the Retained Businesses) on a
non-confidential basis; (iii) becomes public knowledge through
no fault of the receiving Party or any of its Affiliates; or
(iv) is in the public domain at the time the receiving Party
receives the disclosed information.
" Core Business Technology Product " means any product
incorporating Buyer Core Business Technology as a functionally and
commercially significant part thereof (other than a Sensor Product
or Control Product).
" DLP System " means a Deformable Device and/or DMD
System. For the purposes of the foregoing, " Deformable
Device " means a semiconductor device wherein addressable and
movable electromagnetic radiation reflecting members comprise a
substantial portion of the device, including, by way of
illustration, electrostatically controllable, deformable or
deflectable mirrors and " DMD System " means any
instrumentality or aggregate of instrumentalities which incorporate
one or more Deformable Devices as a functionally and commercially
significant part thereof.
" Exclusive Buyer Information " means
know-how and trade secrets constituting or directly relating to the
Buyer Core Business Technology.
" Exclusive Seller Information " means know-how and trade
secrets constituting or directly relating to any Semiconductor
Process and/or DLP System.
" Licensed Party " means the Party to whom the applicable
license set forth in Article 2 has been granted.
" Licensing Party " means the Party granting the other
Party the applicable license set forth in Article 2.
" MEMS License " means the rights granted by each Party
to the other Party pursuant to Section 2.03.
" Net Sales " means (A) the total amount billed to
any unrelated third party by the MEMS Licensee in connection with
the sale of Licensed MEMS Products, or (B) the Fair Market
Value of any Licensed MEMS Products sold as a Combination Product
or sold to a related third party (other than a MEMS Licensee); in
each case less (i) sales taxes, excise taxes, import duties
and other similar taxes (it being understood that taxes based on
the MEMS Licensee’s overall income are excluded) levied by a
Governmental Authority in respect to such sales,
(ii) reasonable and customary returned sales, sales allowances
(adjustments for quality and/or yield) and/or retroactive price
adjustments or credits, in each case consistent with the MEMS
Licensee’s practices with respect to similar products,
(iii) reasonable and customary trade, cash or quantity
discounts, in each case consistent with the MEMS Licensee’s
practices with respect to similar products, (iv) unreimbursed
transportation costs, and (v) unreimbursed transportation
insurance costs (but only if they are expressly documented); in any
case where such sales, incorporation into a system, or the
manufacture of such Licensed MEMS Products occurs in a country
where the Infringed MEMS Patent is issued. " Fair Market
Value " of the Licensed MEMS Products, as used above, shall
mean such commercially reasonable price for which the Licensed MEMS
Products could have been sold to an unrelated third party, as
standalone products, at the time that such Licensed MEMS Products
were sold to such unrelated third party as a Combination Product or
to a related third party (other than a MEMS Licensee). In
determining what is a commercially reasonable price, sales to an
unrelated third party by such MEMS Licensee of the same or similar
products as a standalone product at any time within six months of
the sale of such Combination Product or sale to such related third
party (other than a MEMS Licensee) (as applicable), shall be deemed
to establish the commercially reasonable per unit price. "
Combination Product " means a Licensed MEMS Product sold to
an unrelated third party that is not sold on a standalone
basis.
" Other Seller Product " means (i) any product
intended for incorporation in a DLP System; (ii) any products
intended for applications addressed by products currently or
previously marketed or under development by the Educational and
Productivity Solutions business unit of Seller (e.g., calculators);
(iii) board-level products for use in telecommunications
products (e.g.,
Bluetooth, GPS and WLAN boards);
(iv) board-level products for use in Broadband or networking
products (e.g., DSL boards); (v) High Volume Analog Logic
(HVAL) module or board-level products (other than any product that
is a Restricted Buyer Product); (vi) power modules or boards
(e.g. Powertrends power board) (other than any product that is a
Sensor Product or a Control Product; provided that for these
purposes the phrase "or under development" in clause (iii) of
the definition of Control Product and in clause (ii) of the
definition of Sensor Product shall be disregarded);
(vii) modems, residential-gateways and routers; (viii) Tire
Pressure Sensor Products; (ix) any other products that any
Seller Party manufactured, marketed, sold, offered for sale,
distributed or otherwise transferred prior to the Effective Date or
with respect to which any Seller Party has substantially completed
its development efforts, and any extension, modification,
derivative, replacement or successor products referred to in clause
(ix) (in each case, other than Semiconductor Products and
products included in the Business); and (x) board-level
and systems products (such as a Tagit and Tagit reader) for use in
RFID systems.
" Permitted Subsidiary " means, with respect to any
Party, (i) any Subsidiary of such Party as of the Effective
Date and (ii) any Subsidiary acquired, directly or indirectly,
after the Effective Date by such Party, whether by stock purchase,
merger, asset acquisition or otherwise, which has been granted a
sublicense pursuant to Section 2.04(b).
" Priority Date " means the first effective filing date
of an issued Patent or any application therefor.
" Restricted Buyer Product " means (i) any Sensor
Product and/or Control Product (provided that for these purposes
the phrase "or under development" in clause (iii) of the
definition of Control Product and in clause (ii) of the
definition of Sensor Product shall be disregarded) and
(ii) any other product that incorporates a Restricted Core
Business Technology Product as a functionally and commercially
significant part thereof.
" Restricted Core Business Technology Product " means any
(i) ceramic capacitive sensor, (ii) microfused silicon
strain gauge, (iii) monometal and bimetal snap acting
actuator, (iv) metal oxide silicon sensor and (v) a
self-regulating heater or current limiter that (A) is an
electromechanical product, (B) incorporates positive
temperature coefficient materials based on doped barium titanate
chemistry, and (C) responds to temperature with increased
resistance, or when energized with current generates heat at a
self-regulating point.
" S&C Field " means the field of Sensor Products
and/or Control Products.
" Seller Activities " means the design, development, use
and distribution of (i) design, automation, application or
other software embodied in or operating on or in any way relating
to the manufacture, or use of, any Seller Product and
(ii) services, application notes, reference designs,
emulators, evaluation modules (EVMs), and marketing materials
directly relating to the sales, marketing or use of any Seller
Product.
" Seller Information " means the know-how and trade
secrets owned or licensable by any Seller Party that any Buyer
Party has in its possession as of the Effective Date (so long as
such know-how and trade secrets have been used in the Business
prior to the Effective Date) and not assigned to Buyer under the
Purchase Agreement, excluding any Exclusive Seller Information.
" Seller License " means the rights
granted by Buyer to Seller pursuant to
Section 2.02.
" Seller Party " means Seller and/or any of its Permitted
Subsidiaries.
" Seller Patents " means all Patents now or hereafter
owned or licensable by any Seller Party with a Priority Date prior
to the Effective Date and not assigned to Buyer under the Purchase
Agreement.
" Seller Product " means any (i) Semiconductor
Product, (ii) Other Seller Product and (iii) any software
marketed by Seller for use in conjunction with any of the
foregoing.
" Semiconductor Part " means any semiconductor device or
other device made using a Semiconductor Process and implemented on
and/or as part of a common semiconductor substrate, such as a
discrete or integrated circuit, and further including a MEMS
Product or radio frequency identification product.
" Semiconductor Product " means any Semiconductor Part,
and/or any combination of two or more Semiconductor Parts that may
be used, sold, assembled or otherwise aggregated together in a
chipset, board-level product, or in any assembly or system;
provided, however, that the portions of such chipset, board-level
product, assembly or system that do not constitute a Semiconductor
Part shall not be included as a "Semiconductor Product" (it being
understood that Semiconductor Product shall include electrical
connections between Semiconductor Parts, decoupling capacitors,
power supply connections and any other circuitry directly enabling
the Semiconductor Parts to function together). Semiconductor
Product also includes any software which is incorporated in, or
specific to any of the foregoing which are Semiconductor
Products.
(b) Each of the following terms is defined in the Section set
forth opposite such term:
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Term
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Section
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2.04(b)
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Purchase Agreement
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Preamble
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Purchase Agreement
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Purchase Agreement
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Preamble
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Purchase Agreement
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Purchase Agreement
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Preamble
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2.02(g)
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Purchase Agreement
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2.03(a)
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2.03(a)
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Intellectual Property Right
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Purchase Agreement
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Licensed MEMS Products
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2.03(a)
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Term
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Section
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Maximum Stay
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2.02(f)
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MEMS Infringement Notice
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2.03(a)
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MEMS Licensee
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2.03(a)
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MEMS Product
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Purchase Agreement
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MEMS Royalty
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2.03(a)
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Party
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Preamble
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Parties
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Preamble
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Patents
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Purchase Agreement
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Permitted Buyer Customer
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2.01(c)
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Permitted Seller Customer
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2.02(c)
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Person
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Purchase Agreement
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Protected Claim
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2.02(f)
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Purchase Agreement
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Preamble
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Residual Knowledge
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4.01
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Retained Businesses
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Purchase Agreement
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Seller
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Preamble
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Semiconductor Process
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Purchase Agreement
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Sensors Products
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Purchase Agreement
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Stay Request
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2.02(f)
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Subsidiaries
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Purchase Agreement
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Successful Workaround
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2.02(f)
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Tire Pressure Sensor Products
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Purchase Agreement
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Section 1.02 . Other Definitional And
Interpretative Provisions. The words "hereof", "herein" and
"hereunder" and words of like import used in this Agreement shall
refer to this Agreement as a whole and not to any particular
provision of this Agreement. The captions herein are included for
convenience of reference only and shall be ignored in the
construction or interpretation hereof. References to Articles,
Sections, Exhibits and Schedules are to Articles, Sections,
Exhibits and Schedules of this Agreement unless otherwise
specified. All Schedules annexed hereto or referred to herein are
hereby incorporated in and made a part of this Agreement as if set
forth in full herein. Any capitalized terms used in any Exhibit or
Schedule but not otherwise defined therein, shall have the meaning
as defined in this Agreement. Any singular term in this Agreement
shall be deemed to include the plural, and any plural term the
singular. Whenever the words "include", "includes" or "including"
are used in this Agreement, they shall be deemed to be followed by
the words "without limitation", whether or not they are in fact
followed by those words or words of like import. When the words
"not to be unreasonably withheld" are used in this Agreement, they
shall be deemed to be followed by the phrase ", conditioned or
delayed", whether or not they are in fact followed by that phrase
or a phrase of like import. "Writing", "written" and comparable
terms refer to printing, typing and other means of reproducing
words (including electronic media) in a visible form. References to
any agreement or contract are to that agreement or contract as
amended, modified or supplemented from time to time in accordance
with the terms hereof and thereof. References to any Person include
the successors and permitted assigns of that Person. References
from or through any date mean, unless otherwise specified, from and
including or through and including, respectively. References to
"law" or "laws" shall be deemed to include any and all Applicable
Law.
ARTICLE 2
G RANT O F R
IGHTS
Section 2.01 . From Seller To Buyer.
(a) Subject to the terms and conditions of this Agreement,
each Seller Party hereby grants to each Buyer Party a perpetual,
worldwide, nonexclusive, irrevocable, nontransferable (except as
set forth herein), royalty-free (except as set forth in
Section 2.03), fully paid-up license under the Seller Patents
and Seller Information (i) to make, have made, use, sell,
offer for sale and import, reproduce, perform, display or
distribute any Buyer Product (other than a MEMS Product in the
S&C Field, which is licensed only pursuant to
Section 2.03) and (ii) to engage in Buyer Activities.
(b) Effective upon the Effective Date, each Seller Party hereby
irrevocably releases each Buyer Party and their respective
customers, mediate and immediate, from any and all claims of
infringement of any Seller Patent, with respect to any act
performed or product made, used or sold by a Buyer Party prior to
the Effective Date.
(c) Each Seller Party hereby agrees not to initiate any
infringement action, or otherwise assert any claim, demand, cause
of action or request for damages or other relief, either alone or
in cooperation with any other Person, against any Buyer Party or
any of their customers on or before April 30, 2007 under any
Seller Patent and/or the Seller Information with respect to
(i) any Buyer Product of the type manufactured and sold to
such customers (including any Buyer Product of the type with
respect to which such customer has entered into a contract or
otherwise placed an order with a Buyer Party) within the one
(1) year period immediately prior to the Announcement Date for
any product of an immediate customer of a Buyer Party and/or
(ii) any product of an immediate customer which infringes or
has infringed upon such Seller Patent claims and in which such
Buyer Product is or has been incorporated within the one
(1) year period immediately prior to the Announcement Date
(including any such customer products which are modifications,
derivations, replacements or successor products of any of the
foregoing) (a " Permitted Buyer Customer Product ");
provided that the foregoing shall not apply with respect to any
product of an immediate customer which is only under development as
of the Announcement Date. Without limiting the generality of the
foregoing, it is understood and agreed that the foregoing covenant
with respect to a Permitted Buyer Customer Product shall apply to
all downstream customers, sellers, distributors, and the like, as
in the case of patent exhaustion. Notwithstanding the foregoing, as
to any particular Seller Patent claim, the covenant set forth in
this Section 2.01(c) shall only apply to any changes made to
such Buyer Products and/or customer products after the Announcement
Date if such changes do not result in such products infringing such
Seller Patent claim in a manner that is materially different from
such Buyer Product and/or customer product as each existed within
the one (1) year period immediately prior to the Announcement
Date. Notwithstanding the terms of this Section 2.01(c), in
the event that any customer of a Buyer Party initiates a patent
infringement action against a Seller Party after the Effective Date
and such action does not arise out of or relate to a patent
infringement dispute initiated by a Seller Party, then such Seller
Party shall be permitted to respond to such patent infringement
action and assert any Seller Patent claim that such Seller Party
would otherwise be precluded from asserting under this
Section 2.01(c) against such customer; provided that the
assertion of any such Seller Patent claim (A) is not in
respect of a customer product which incorporates a Buyer Product
that directly infringes such Seller Patent claim and (B) is
not otherwise prevented by any of the other licenses and covenants
of this
Article 2. Notwithstanding the foregoing, in no
event shall Seller be permitted to recover any damages or obtain
any other relief resulting from any infringement of any Seller
Patent and/or Seller Information that occurred on or before
April 30, 2007 with respect to any Buyer Product and/or any
Permitted Buyer Customer Product to the extent that the above
covenant applies.
(d) Notwithstanding anything in this Agreement to the contrary,
the Seller Patents and Seller Information shall only be deemed to
be licensable if any Seller Party has the power to sublicense such
Seller Patents and Seller Information to Buyer at no additional
cost to, and such sublicense will not result in any further
obligations being imposed on, any Seller Party; provided, however,
if Buyer agrees to assume and directly pay such additional cost to
the applicable third party and such direct payment is permitted,
such Seller Patents and Seller Information (as applicable) shall be
licensable hereunder.
Section 2.02 . From Buyer To Seller.
(a) Subject to the terms and conditions of this Agreement,
each Buyer Party hereby grants to each Seller Party a perpetual,
worldwide, nonexclusive, irrevocable, nontransferable (except as
set forth herein), royalty-free (except as set forth in
Section 2.03), fully paid-up license under the Buyer Patents
and Buyer Information to make, have made, use, sell, offer for sale
and import, reproduce, perform, display or distribute any Seller
Product (other than a MEMS Product in the S&C Field, which is
licensed only pursuant to Section 2.03) and (ii) to
engage in any Seller Activities. Notwithstanding the foregoing, the
Seller Parties shall be prohibited from exercising the license
rights granted in this Section 2.02 in any manner which
contravenes the terms of Section 5.03 of the Purchase
Agreement.
(b) Effective upon the Effective Date, each Buyer Party hereby
irrevocably releases each Seller Party and their respective
customers, mediate and immediate, from any and all claims of
infringement of any Buyer Patent, with respect to any act performed
or product made, used or sold by a Seller Party prior to the
Effective Date.
(c) Each Buyer Party hereby agrees not to initiate any
infringement action, or otherwise assert any claim, demand, cause
of action or request for damages or other relief, either alone or
in cooperation with any other Person, against any Seller Party or
any of their customers on or before April 30, 2007 under any
Buyer Patent and/or the Buyer Information with respect to
(i) any Seller Product of the type manufactured and sold to
such customers (including any Seller Product of the type with
respect to which such customer has entered into a contract or
otherwise placed an order with a Seller Party) within the one
(1) year period immediately prior to the Announcement Date for
any product of an immediate customer of a Seller Party and/or
(ii) any product of an immediate customer which infringes or
has infringed upon such Buyer Patent claims and in which such
Seller Product is or has been incorporated within the one
(1) year period immediately prior to the Announcement Date
(including any such customer products which are modifications,
derivations, replacements or successor products of any of the
foregoing) (a " Permitted Seller Customer Product ");
provided that the foregoing shall not apply with respect to any
product of an immediate customer which is only under development as
of the Announcement Date. Without limiting the generality of the
foregoing, it is understood and agreed that the foregoing covenant
with respect to a Permitted Seller Customer Product shall apply to
all downstream customers, sellers, distributors, and the like, as
in the case of patent exhaustion. Notwithstanding the foregoing, as
to any particular Buyer Patent claim, the covenant
set forth in this Section 2.02(c) shall only
apply to any changes made to such Seller Products and/or customer
products after the Announcement Date if such changes do not result
in such products infringing such Buyer Patent claim in a manner
that is materially different from such Seller Product and/or
customer product as each existed within the one (1) year
period immediately prior to the Announcement Date. Notwithstanding
the terms of this Section 2.02(c), in the event that any
customer of a Seller Party initiates a patent infringement action
against a Buyer Party after the Effective Date and such action does
not arise out of or relate to a patent infringement dispute
initiated by a Buyer Party, then such Buyer Party shall be
permitted to respond to such patent infringement action and assert
any Buyer Patent claim that such Buyer Party would otherwise be
precluded from asserting under this Section 2.02(c) against
such customer; p
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