Exhibit 10.1
Execution
Copy
SECOND AMENDED AND
RESTATED
MEMBRANE MANUFACTURE AND SUPPLY
AGREEMENT
This Second Amended and Restated
Membrane Manufacture and Supply Agreement (this
“Agreement”) is entered into effective as of
December 19, 2008 (the “Effective Date”), between
Millipore Corporation (“Millipore”), a Massachusetts
corporation with its principal place of business at 290 Concord
Road, Billerica, MA 01821, and Entegris, Inc.
(“Entegris”), a Delaware corporation with its principal
place of business at 3500 Lyman Boulevard, Chaska, MN
55318.
RECITALS
1. The Parties entered into an
Amended and Restated Membrane Manufacture and Supply Agreement
dated as of November 30, 2005 (the “Old
Agreement”) which among other things provided for the
manufacture and supply of certain membranes that are used by and
incorporated into products of both Millipore and Entegris, so as to
appropriately ensure both Millipore and Entegris a continuing
supply of such membranes.
2. Entegris plans to move its
operations out of Millipore’s facility in an orderly manner,
and both Parties desire to coordinate such move without disruption
to the mutual supply relationship between them.
3. Accordingly, the Parties wish to
amend and restate certain provisions of the Old Agreement and to
cancel and replace the Old Agreement as of the Effective Date with
this Agreement.
NOW, THEREFORE, in consideration of
the foregoing and the covenants and agreements set forth below, the
parties hereto agree as follows:
The following terms shall have the
meanings assigned to them below whenever they are used in this
Agreement including the Exhibits and Annexes hereto. Terms defined
elsewhere in this Agreement shall have the meaning ascribed thereto
at the location of their definition. Except where the context
otherwise requires, words imparting the singular shall include the
plural and vice versa, words denoting any gender shall include all
genders and words denoting persons shall include bodies corporate
and vice versa.
“Affiliated
Company” of one of
the parties shall mean any entity that controls, is controlled by,
or is under common control with such party. As used herein,
“control” means the possession, directly or indirectly,
or the power to direct or cause the direction of the management and
policies of such entity, whether through ownership of voting
securities or other interests, by contract or otherwise.
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“Confidential
Information” shall
have the meaning set forth in Section 13.1 hereof.
“Entegris Core
Business” shall
mean: (i) the IC M ANUFACTURING I NDUSTRY including companies that manufacture integrated
circuits, semiconductors, semiconductor chips and other
microelectronics components, flat panel displays, solar cells and
fiber optic cables, optical coatings, coated optical lenses and
coated optical fibers; (ii) the IC OEM E
QUIP & M ATERIALS M FG .
I NDUSTRY
including companies that manufacture
equipment for the fabrication and processing of semiconductors and
integrated circuits for sale to companies in the IC Manufacturing
Industry as well as companies that integrate a number of components
into subsystems sold to OEM equipment manufacturers for
incorporation into semiconductor fabrication equipment, as well as
companies that manufacture, process and supply liquids, gases,
conductive materials and other advanced materials to the IC
Manufacturing Industry and which provide products and systems to
purify, monitor and control atmospheric conditions in clean room
manufacturing environments of the IC Manufacturing Industry; and
(iii) the IC R ESEARCH L ABORATORY I NDUSTRY including university, governmental and
commercial laboratories and research operations that research
and/or develop innovations in the structure and composition of
integrated circuits, the processes and materials used to
manufacture integrated circuits and new forms of integrated
circuits.
“Entegris
Equipment” shall
have the meaning set forth in Section 3.1.1 hereof.
“Entegris Permitted
Persons” shall have
the meaning set forth in Exhibit B.
“Equipment” shall mean the Entegris Equipment and the
Millipore Equipment collectively.
“Facility
Term” shall mean
the period commencing on the Effective Date and ending on
December 31, 2010, or until this Agreement is terminated early
in accordance with Section 6.2.
“Flat Sheet UPE
Membranes” shall
mean rollstock UPE Membranes typically less than 300 microns in
sheet thickness including both phobic and philic Membranes as
produced at the Premises pursuant to the Old Agreement immediately
prior to the Effective Date, or as modified as provided in this
Agreement.
“Information”
shall mean business information,
technical information and data, know-how, research information and
data, formulae and other information, whether or not patentable or
copyrightable, in written, oral, electronic or other tangible or
intangible forms, stored in any medium, including studies, reports,
records, books, contracts, instruments, surveys, discoveries,
ideas, concepts, know-how, techniques, designs, specifications,
drawings, blueprints, diagrams, models, prototypes, samples, flow
charts, data, computer data, disks, diskettes, tapes, computer
programs or other software,
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marketing plans, customer names, communications
by or to attorneys (including attorney-client privileged
communications), memos and other materials prepared by attorneys or
under their direction (including attorney work product), and other
technical, financial, employee or business information or
data.
“Lease”
shall mean the lease of the Premises
as set forth in Section 2 hereof and in the Lease terms set
forth in Exhibit B hereto.
“Machines”
shall have the meaning set forth in
Section 7.1 hereof.
“Machine Hourly
Rates” shall have
them meaning set forth in Section 7.1. hereof.
“Membranes” shall mean UPE Membranes as well as any other
membranes or materials that the parties may hereafter agree to add
to this definition of Membranes.
“Millipore Core
Business” shall
mean: (i) the B IOPHARM I NDUSTRY including pharmaceutical/biotechnology and
genetic engineering companies as well as manufacturers of
cosmetics, medical devices, diagnostic products and clinical
analytical products; (ii) the L
AB & L IFE S CIENCE R ESEARCH I NDUSTRY including government, university and private
research and testing analytical laboratories for proteomic,
genomic, microbiological and similar research and analysis as well
as for environmental research and analysis; and (iii)
the F OOD & B EVERAGE I NDUSTRY including companies that manufacture or process
foods and beverages including dairy products, beer, wine, juice and
soft drink manufacturers and bottled water companies.
“Millipore
Equipment” shall
have the meaning set forth in Section 3.1.2 hereof.
“New Entegris
Facility” shall
mean the facility at a location chosen by Entegris on property not
owned by Millipore to which Entegris will relocate all of its
manufacturing operations from the Premises.
“Original Contract
Date” shall mean
March 31, 2001.
“Other Flat Sheet UPE
Membranes” shall
mean Flat Sheet UPE Membranes other than Treated Flat Sheet UPE
Membranes. Other Flat Sheet UPE Membranes include, as of the
Effective Date, those Membranes listed under the heading
“Other Flat Sheet UPE Membranes” in Exhibit A
hereto.
“Other UPE
Membranes” shall
mean all UPE Membranes other than Treated Flat Sheet UPE
Membranes.
“Other UPE
Products” shall
mean devices or other products which include Other UPE Membranes as
a material or component.
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“PFA Hollow Fiber
Membranes” shall
mean tubular PFA membranes having an outer diameter in the range of
500-1000 mm and an inner diameter of 100-500 mm.
“Premises”
shall have the meaning set forth in
Exhibit B .
“Releases”
shall mean any purchase orders or
other documents of purchase that Millipore may place with Entegris
for UPE Membranes.
“Rent”
shall have the meaning set forth in
Exhibit B .
“Subsidiary” of one of the parties shall mean any entity that
is controlled by such party. As used herein, “control”
of an entity means the possession, directly or indirectly, or the
power to direct or cause the direction of the management and
policies of such entity, whether through ownership of voting
securities or other interests, by contract or otherwise.
“Supplement” shall mean the schedule of supplemental terms
and conditions specifying detailed provisions to implement the
contractual commitments set forth in this Agreement relating to
membrane manufacturing operations and membrane manufacturing
process improvements which is attached to this Agreement as
Exhibit C .
“Supplied
Party” shall mean a
party to this Agreement that orders certain Membranes pursuant to
this Agreement and to whom such Membranes are sold.
“Supplying
Party” shall mean a
party to this Agreement that manufactures certain Membranes ordered
by the other party pursuant to this Agreement and that sells such
Membranes to the other party.
“Term”
or “Term of this
Agreement” shall mean the effective period of this
Agreement as set forth in Section 6 hereof.
“Treated Entegris
Membranes” shall
mean Treated Flat Sheet UPE Membranes and Treated Other Entegris
Membranes.
“Treated Entegris
Products” shall
mean devices or other products which include Treated Entegris
Membranes as a material or component.
“Treated Other Entegris
Membranes” shall
mean those Entegris membranes that are chemically treated using
Millipore’s VMF4 Line or using Millipore’s patented
VMF4 technology, including, as of the Effective Date, those
membranes listed under the heading “Treated Other Entegris
Membranes” in Exhibit A hereto.
“Treated Flat Sheet UPE
Membranes” shall
mean Flat Sheet UPE Membranes that are chemically treated using
Millipore’s VMF4 Line or using Millipore’s patented
VMF4 technology, including, as of the Effective Date, those
Membranes listed under the heading “Treated Flat Sheet UPE
Membranes” in Exhibit A hereto.
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“UPE
Membranes” shall
mean microporous membranes produced from an ultrahigh molecular
weight polyethylene material by a melt cast process, as produced
pursuant to the Old Agreement at the Premises immediately prior to
the Effective Date, or as modified as provided in this
Agreement.
“UPE
Products” shall
mean devices or other products which include UPE Membranes as a
material or component.
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1A.
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T RANSITION OF M ANUFACTURING
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1A.1
Move . The
parties have agreed that Entegris will move its membrane
manufacturing operations currently conducted in the Premises to the
New Entegris Facility in an orderly manner (the “Move”)
during the Facility Term.
1A.2
Timing .
Entegris will not move any equipment or operations sooner than July
2009. Subject to the achievement of required safety stocks as
described in Section 5.7, Entegris will complete the Move and
have vacated the Premises no later than the end of the Facility
Term. Entegris will prepare a detailed move schedule and provide it
to Millipore by December 31,2008 .The parties will review and
update the schedule during the Facility Term on a monthly basis as
the Move progresses. Millipore will supply its requirements for
feasibility and qualification rolls in coordination with the
schedule.
1A.3
Coordination . The parties will work together in good faith
to facilitate such Move to minimize disruptions and costs to both
parties.
1A.4
Qualification . Prior to the reduction or cessation of
production of Membranes at the Premises, Entegris will establish
its own new UPE annealing capability at the New Entegris Facility.
Millipore will use its commercially reasonable efforts, in
conjunction with Entegris, to qualify the Entegris’
manufacturing process at the New Entegris Facility to enable the
supply of qualified Membranes. Entegris will provide to Millipore
in parallel with such qualification a reasonable quantity of rolls
of UPE Membrane necessary for Millipore to conduct feasibility and
qualification testing. All such feasibility and evaluation rolls
provided to Millipore by Entegris will meet all existing Entegris
specifications as agreed by the parties. If, despite each
party’s commercially reasonable efforts, Millipore is unable
to qualify the Entegris UPE annealing line, Millipore reserves the
right to perform the annealing process itself. In such
circumstances, Entegris shall provide to Millipore a sufficient
quantity of extracted gel rolls, at appropriately adjusted prices,
to enable Millipore to produce sufficient finished product to meet
Entegris’ obligations for such finished product.
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1A.5 No Supply
Disruption .
Notwithstanding the Move, Entegris will at all times during the
Term of this Agreement continue to meet its supply obligations to
Millipore under this Agreement of any Membranes from a
manufacturing process qualified by Millipore. It is the expectation
of the parties that Entegris will produce Membranes from both
facilities initially and, after the Facility Term, if the New
Entegris Facility and its processes are qualified by Millipore,
solely from the New Entegris Facility.
1A.6 No VMF4
Disruption .
Notwithstanding the Move, Millipore will at all times during the
Term of this Agreement continue to meet its obligations to Entegris
under this Agreement to provide hydrophilization of any Membranes
on its VMF4 Line.
1A.7
Costs .
Entegris will bear all costs of dismantling, packaging, freight,
shipping, installation, testing and requalification of all Entegris
Equipment to be removed from the Premises.
1A.8 Transfer to New
Annealing Line .
If Entegris’ new UPE annealing process can be qualified
successfully by Millipore as provided above,, then after such
qualification Millipore shall have Millipore membrane processed by
Entegris on the new Entegris annealing machine with pricing based
on the costs associated with the new machine and forego any payment
for existing Film I Annealing machine hours from Entegris. Prior to
any successful qualification of such new process to
Millipore’s reasonable satisfaction, Millipore shall have
Millipore membrane continue to be processed on the existing Film I
annealing machine at the Premises with Entegris continuing to be
charged the same rates and pricing then in effect. Any such
shifting of production shall not result in a termination of the
Agreement, which may be only be terminated in accordance with its
terms.
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2.
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L EASE OF THE P REMISES
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In order to enable Entegris to
manufacture UPE Membranes, including Treated Flat Sheet UPE
Membranes and Other Flat Sheet UPE Membranes, and Treated Other
Entegris Membranes in the same production areas at
Millipore’s facility at 80 Ashby Road, Bedford MA. and/or
such additional, reduced or substituted areas all as described in
greater detail in Exhibit B hereto, and with the same processes as
such UPE Membranes and Treated Other Entegris Membranes were
manufactured prior to the Effective Date (both (i) for its own
use and sale and for its sale of UPE Products and (ii) for
supply of Flat Sheet UPE Membranes to Millipore as provided in this
Agreement), Millipore and Entegris agree to the arrangements
regarding Entegris’ use of the Premises as are set forth in
Exhibit B hereto for the duration of the Facility
Term.
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3.
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O WNERSHIP AND U SE OF THE E QUIPMENT
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3.1.
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Ownership. For purposes of clarification, the parties
acknowledge and agree that:
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3.1.1.
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All right,
title and interest in and to the following equipment currently used
in the manufacture of UPE Membranes and/or Treated Other Entegris
Membranes, now exists with, and is solely owned by Entegris
(collectively, the “Entegris Equipment”):
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Description
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Current Location
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Quantity
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1.
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Slurry Mixing
Vessels
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Bldg C –
Mix Room
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2
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2.
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Extrusion Line
& support equipment (cranes, vents etc.)
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Bldg
D-101
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1
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3.
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NZE Extractors
& support equipment (scales, vents etc.)
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Bldg
C-103
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2
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4.
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Release/Testing
Equipment (porosimeter, flow stands, VBP stands, digital dimension
equipment)
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Bldg
D-101
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1
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5.
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Monomer
Chemical Mixing Vessel (for philic Flat Sheet UPE
Membranes)
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Bldg C –
Mix Room
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1
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6.
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MSR Batch
Extractors & support equipment (cranes, LS-15, etc.)
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Bldg
D-101
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3
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7.
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Release/Testing
Equipment (flow stands, VBP stands, digital dimension
equipment)
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Bldg F-Cell
5
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1
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8.
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CUPE
Mix/recirculation Pumps
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Bldg C-Mix
Room
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2
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9.
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NZE Chiller
Loop (~100 Tons)
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Bldg
C-Roof
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1
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10.
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Oil Mist
Collector (and duct/hood)
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Bldg
D-101
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1
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11.
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7 Ton Edwards
Chiller
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Bldg
D-outside
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1
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12.
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Tiyoda-Serec
Extractor
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Bldg F-Cell
5
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1
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13.
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Tiyoda-Serec
Ext 42 Ton Chiller
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Bldg
C-roof
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1
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3.1.2.
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All right,
title and interest in and to any equipment other than the Entegris
Equipment used in the manufacture of UPE Membranes and/or Treated
Other Entegris Membranes, including the following equipment
currently used in such manufacture (collectively, the
“Millipore Equipment”) is solely owned by
Millipore:
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Description
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Current Location
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Quantity
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1.
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Slurry Mix
Stations; Control Modules 1-3
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Bldg
C-105
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3
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2.
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Film 1
Annealing Line
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Bldg.
C-123
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1
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3.
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VMF 4 Line
(chemical modification)
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Bldg.
C-124
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1
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4.
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Testing: Flow,
Wet Time, Stability
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Bldg.
C-124
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various
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5.
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Monomer
Chemical Mixing Stations 4-6
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Bldg.
C-105
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3
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3.2.
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Use of
Millipore Equipment and Support . At all times during the Facility Term,
Millipore shall provide Entegris with access to and use of the
Millipore Equipment, each as necessary for use in the manufacture
of UPE Membranes or Treated Other Entegris Membranes in accordance
with Article I of the Supplement. Entegris shall pay Millipore
Machine Hourly Rates as set forth in Section 7.1 below with
respect to the use of the Millipore Equipment. At all times during
the Term of this Agreement Millipore will provide a reasonable
level of operational assistance and general technical support
assistance in resolving technical problems in UPE Membrane
manufacture occurring at the Premises in accordance with Article I
of the Supplement. Millipore shall be responsible for maintaining
the Millipore Equipment in its current operational capability, and
Entegris shall be responsible for maintaining the Entegris
Equipment in its current operational capability and condition, in
each case as specified in Article I of the Supplement, unless the
parties agree in writing during the Term of this Agreement to alter
such maintenance responsibilities. To the extent Millipore provides
extraordinary services to Entegris, such services will be charged
in accordance with the rate structure specified in Section 7.3
of the Agreement.
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4.
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M ANUFACTURE OF M EMBRANES
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4.1.
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Membrane Manufacturing
Operations . Millipore and Entegris agree that Membrane
manufacturing operations during the Term of this Agreement shall be
carried out in accordance with this Section 4 and with Article
I of the Supplement.
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4.2.
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Guaranteed Capacity
. 4.2.1. At all times during the Term of
this Agreement, Millipore agrees to have VMF4 Line capacity
sufficient to handle projected philic Membrane volumes hereunder of
up to 280,000 feet (~800 hours) per quarter. If necessary and at
Millipore’s discretion, this capacity can be accomplished by
either moving Millipore products (i.e. products other than the
Membranes covered by this Agreement) to Millipore’s MML
hydrophilization equipment or by moving philic Membranes covered by
this Agreement to the MML hydrophilization equipment if mutually
agreed upon with cost impact to be agreed upon in
advance.
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4.2.2.
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At all times
during the Facility Term, Millipore agrees to have (i) Film 1
Annealing Line processing capacity sufficient to handle projected
phobic Membrane volumes hereunder of up to 3,200,000 feet (~1400
hours) per quarter, and (ii) mix capacity sufficient to handle
up to four (4) mixes of 400 pounds each on any days on which
Entegris is running its extrusion process on the
Premises.
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Page 8 of 28
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4.2.3.
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At all times
during the Facility Term, Entegris agrees to generally schedule
operations in alignment with Millipore’s plan for shutdown
periods and holidays. However, it is acknowledged and agreed that
there will be times of high demand during the Facility Term where
Entegris will be required to run the Entegris Equipment during
these times. In such cases, Millipore and Entegris will mutually
agree on a plan allowing for high utilization of the Entegris
Equipment.
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4.2.4.
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Subject to any
new or changed restrictions imposed by the applicable air emission
permit(s), Entegris agrees to have sufficient capacity, across all
relevant process steps, to meet Millipore’s projected demand
for phobic UPE Membranes that meet agreed specifications and
qualification in an amount of guaranteed capacity per each calendar
quarter during the Term of this Agreement of 300,000 feet. Through
mutual written agreement, this guaranteed capacity level can be
reduced to 200,000 feet for a mutually agreed upon time period
should Millipore’s firm and forecasted releases
warrant.
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4.2.5
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The parties
agree to commence good faith discussions in the first calendar half
of 2011 regarding the possibility of continuing Entegris’
access to Millipore’s VMF4 Line capacity beyond the Term of
this Agreement on terms and conditions mutually acceptable to both
parties, if any.
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4.3.
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Capacity Expansion
. Membrane manufacturing capacity will be reviewed
in accordance with a mutually agreed upon schedule during the Term
of this Agreement, but no less often than annually. Entegris shall
be responsible to review and report on the capacity of the Entegris
Equipment and Millipore shall be responsible to review and report
on the capacity of the Millipore Equipment. The results of these
reviews will be discussed and documented for reference and to
provide a basis for capacity expansion, as may be appropriate and
agreed by the parties.
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4.4.
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Manufacturing Process
Improvements . Millipore and Entegris agree to implement
mutually agreeable Membrane manufacturing process
improvements.
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4.5.
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End of
Term Arrangements for Millipore . Following the expiration or earlier
termination of the Term of this Agreement, Millipore desires the
full capabilities to manufacture (or have manufactured) UPE
Membranes for its and its Affiliated Companies’ use and sale,
and for its and its Affiliated Companies’ use in
manufacturing (or having manufactured) UPE Products for sale.
Accordingly, to facilitate Millipore’s manufacture of UPE
Membranes following the Term of this Agreement:
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Page 9 of 28
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4.5.1
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(i) Entegris
agrees in the event that Entegris during the Term of this Agreement
acquires and has installed at the Premises new equipment in
replacement of the existing Extrusion Line, or otherwise determines
during the Term of this Agreement, in its sole discretion, that the
Extrusion Line and/or one NZE Extractor are surplus and are to be
disposed of, then Entegris agrees to grant Millipore an option to
purchase, prior to or at the termination of this Agreement, at
their then current book values and at such other reasonable terms
as the parties may agree, such surplus Extrusion Line and/or NZE
Extractor. Upon consummation of any such sale transaction, Entegris
agrees to leave in their then current locations at the Premises,
the subject Extrusion Line and/or NZE Extractor, as the case may
be. Entegris agrees to notify Millipore as to whether it is
granting Millipore such an option, at least eighteen
(18) months prior to the termination of this Agreement;
and
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4.5.2
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In the event
that the parties consummate a sale of any equipment deemed to be
surplus by Entegris as specified above, Entegris agrees to provide
Millipore with the know-how (including copies of all pertinent
documentation) and a reasonable amount of transition assistance
relating to the design, specifications, functionality, operation
and maintenance of such equipment, or otherwise necessary or useful
for Millipore to be able to continue the UPE Membrane manufacturing
process immediately upon the termination of this Agreement, so as
to be able to make or have made UPE Membrane in the same process
and of the same quality as made and supplied under this Agreement.
All Entegris transition assistance time shall be charged to
Millipore at the rates per person-hour calculated in accordance
with Section 7.3 below.
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4.6.
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End of
Term Arrangements for Entegris.
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To facilitate Entegris’
manufacture of UPE Membranes and Treated Entegris Membranes at a
different location following the expiration or earlier termination
of this Agreement:
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4.6.1.
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Entegris shall
remove and transport, at its own expense, the Entegris Equipment
(subject to the consummation of any sale pursuant to any option to
purchase certain items of such Entegris Equipment as specifically
set forth in Subsection 4.5.1 above) from the Premises to a
location of its choice within one-hundred eighty (180) days
following such expiration or early termination. Entegris shall use
its best efforts to avoid or minimize damage to the Premises or to
any other part of Millipore’s 80 Ashby Road facility from
such removal, and shall promptly reimburse Millipore for its
reasonable and actual costs of repairing any damage to the extent
caused by Entegris or its agents or representatives in the process
of removing the Entegris Equipment from the Premises or any other
parts of such facility; and,
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Page 10 of 28
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4.6.2.
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Millipore shall
provide Entegris with know-how (including copies of all pertinent
documentation) and a reasonable amount of transition assistance
relating to the design, specifications, functionality, operation
and maintenance of the Millipore Equipment, such that Entegris can
make or have made, and operate and maintain, equipment
substantially equivalent or comparable to the Millipore Equipment,
or successfully outsource the functions performed by the Millipore
Equipment, in the manufacture of UPE Membranes and Treated Other
Entegris Membranes. All Millipore transition assistance shall be
charged to Entegris at the rates per person-hour calculated in
accordance with Section 7.3 below.
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4.7.
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Joint
Know-How . In the
event that any know-how results from or is developed in the course
of the manufacture of UPE Membranes or Treated Other Entegris
Membranes in the Premises during the Facility Term of this
Agreement (including the use of Millipore Equipment in such
manufacture), whether by employees of Millipore, employees of
Entegris or jointly, such know-how shall be jointly owned by
Entegris and Millipore. Millipore shall have rights to use such
know-how in all fields other than the Entegris Core Business, and
Entegris shall have rights to use such know-how in all fields other
than the Millipore Core Business.
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4.8.
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Additional Membranes
. Entegris shall have the right to
add other membranes to the list and definition of “UPE
Membranes” during the Term of this Agreement, subject to
(i) Millipore’s approval (on
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