Case 5:20-cv-05676-EJD Document 42-10 Filed 12/07/20 Page 1 of 8
`Case 5:20-cv-05676—EJD Document 42-10 Filed 12/07/20 Page 1 of 8
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`EXHIBIT H
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`EXHIBIT H
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`
`
`
`

`

`Case 5:20-cv-05676-EJD Document 42-10 Filed 12/07/20 Page 2 of 8
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`SV-m.rPhlx IDC.
`
`INTEROFFICE MEMORANDUM
`_ ==_.._ .... ":-=-r __--::...._. . .==. _._~__._ .=-c__.._.==__..__._...__~-:..___::-l=
`To: D. Sponseller
`
`From: B. Conner
`
`Subjec: AKT - Symmorphix Agreement
`
`Date: 01/11/99
`
`I received the attached memo from Corning last Friday requesting clarifications to Exhibit
`C of our agreement. Coming's major concern is that paragraph 3b) may be broader than
`intended and may allow AK to use Symmorphix's patents to compete with Symmorphix in
`flat panel displays.
`
`You had mentioned that Dennis Hunter wants to revise paragraph 1) as the payment terms
`for future systems sate are not the same as the initial system sales.
`
`Paragraph 3b) discourages Symmorphix from filing patents regarding sputtered silcon.
`Keeping Symmorphix' innovations trade secrets only poses the risk that another
`equipment vendor could independently develop and patent similar innovations. I believe
`that Applied Materials would like Symmorphix' sputtered silcon innovations to be patented
`(hence, protected) and may appreciate a license. I suggest that paragraph 3b) be revise
`to restrict the license of Symmorphix' patents back to AKTA (and AKTA's parents) for use
`on silcon wafers for semiconductors. This would stil provide a "balanc agreemene,
`which was one of Larr Edelman's objectives -- i.e., offset paragraph 3a) with 3b) - as
`paragraph 3a) is narrow. (Its purpose is only to allow Symmorphix to use AKT's sputered
`silcon tecnology with systems we purchase from AKT and be able to modify the system).
`
`I would like to request that we meet to discuss revising Appendix C to incorporate changes
`from AKT/AMAT and SymmorphixlComing.
`
`Attached is a handwritten sketch of the items transferred / not transferred between AKT
`and Symmorphix as well as a re-cp of Symmorphix beneifts to AK.
`
`Regards,fl
`
`Symorphix Cofidential
`
`

`

`Case 5:20-cv-05676-EJD Document 42-10 Filed 12/07/20 Page 3 of 8
`ADP CORNING NY
`01/08/99 16:01 i5 :02/05 NO:971
`li 6079747097
`
`CORNING
`
`Janua 8, 1999
`
`Bob Conner
`President and CEO
`Symorphi Incorporated
`
`Dear Bob,
`
`As we discussed, Symmorphix has nOl met the pi-erequisite of our Assessment of
`Technolog and Commercial Feasibilry Agreement regadig Comi's understandin and
`acceptance of Syminorphi business relationships and agrements with AKT, Applied
`licese of technlogy and
`inteJlecnia propert_ Consequently, Corng wil not provide Synorphi wm fundig
`unti SymmorphI mee~ dus prei-equisite.
`
`Materials, or other thd panics, including but not lited to.
`
`Comig has the following major objections to Exhibit C of the AKT A - Symorphi Sale
`and Relationship Agreement dated December 11, 1998:
`
`1) Comig's original understanding of the arraement between Syn1Iiphix and AKT
`and its parent companies, was that Symmorphix 'Would be fully licensed to utilize the
`thin film sputtering technology and mtelec-rual propeny and that Syrnorphix was
`encourged by both AKT and AM T to quick buid thei own patent portfoli.
`Paragraph 3b seems to conrradict this direction by providing a disicentive for
`Symorphix to parent (heir own tecnology developments for the fist 2 yeas. It alows
`AKT A's cuStomers to uSe Symmoiphi's patenrs to deposit spmrredsilcon on PVD
`systems purchased from AKTA 11iìs woul pose a competitive threat (0 die
`SymorphIx - Corning husiness model sie flax panel manufa(.tuers depositing
`sputtered silcon in-house reduces rh demand for substraxes co;aed with sputtered
`silcon_
`
`2) Paragraph 7 is unenforceable as written.
`
`Attched are the changes G:)ming would like to see mae in Exhbit C.
`
`As we have discussed, Coming is also concerned about the isi.'Ues raised by Shai durg our
`visiT in December and is anxous to lear of AKT - Symmorplii'I plas to resolve those
`inatters.
`
`

`

`Case 5:20-cv-05676-EJD Document 42-10 Filed 12/07/20 Page 4 of 8
`ADP CORNING NY
`01/08/99 16: 01 B : 03/05 NO: 971
`fi 6079747097
`
`- i-
`
`.
`Jan 8,199
`
`Given (he positive preliminary (.'U5tOffeT feedback, we would lie (0 proced with (he
`Assessment of Technology and Marker Feasibilty and provide Syminorphi with fundig to
`do so. However, the issues raised in this letter must be addressed to Cor's satisfaction
`before we can proceed.
`
`Sincerely
`
`~
`
`.-li- I~Ç
`Robel~
`Director - World Wide Sales and Marketing
`Advanced Display Products
`
`

`

`Case 5:20-cv-05676-EJD Document 42-10 Filed 12/07/20 Page 5 of 8
`ADP CORNING NY
`01/08/99 16:01 B :04/05 NO:971
`li 6079747097
`
`Exhfblt C
`Future Dealings, IntêUectuaf Propert, Confidential Information and licenses
`
`1. AKT A intends to offer for sale new 1600/3500/4300 PVD systems to Symmorphix in the
`future. under the same terms as detailed in this Agreement.
`
`2. Symmorphix will provide AKT A with the first right" to supply any sputered silicon PVD
`systems, spares, and upgrades. During AKTA's 1999 fiscal year (please sDecifv fiscal year
`
`end date). AKTA wil provide Symmorphix with a right of
`
`first refusal for additional PVD
`system sales. that is, AKT A wil offer to sell a PVD system to Symmorphix before sellng it to
`another part having the same sputtered silicon film product objectives as Symmorphix.
`
`3. License Grants
`
`~AKTA grants to Symmorphix a non-assignable. non-transferable, non-excJusive.
`perpetual. royalty free license to use. with flfegyet Qquioment purchased from or
`supplied by nr for AKTA ("Products"), patented methods and processes of AKTA which
`are appropriately utilizable in the Products, and to AKT A's rights under any patents.
`patent applications. inventions, or technology relating to sputtered silcon deposition
`technology owned by or licensed to AKT Ai includinq the inventions and intellectual
`propert referred to in Section 4 of this Exhibit C of this Aareement. for the purpose of
`providing sputered silicon deposition services rServices"). This license does not
`extend to the use of any of AKTA's patented methods or processes in proElysts
`eauioment not purchased from or supplied by or for AKTA or in Products which have
`been substantially altered by any third part except Symmorphix.
`
`2a¡ :=~~~~~ ,:? II!(/\ a ROR a..i¡nallla, ROR t:::r:: :::::::~:. =
`:: ,~,~ ~ ".At~~~ "f g\'-lf~" ~R"ar aRY ,pa , i a :; Y
`nppløaaRO fi.. lIafro JamlaF) 1, 2901: far IR~eRllano. ==i:;; "
`:~~~~~evele"," IIy SY"'",alfhl. "'13l"!l 10 op~ ~, .l ,.. ==
`:'~:~~Y, ~~~~ i~et AKTA o,~all Rolllilize OYO~ i;~;::::~ "' r..Y61
`~~~;~ ~:~e:mfng ~at f'~Flol ~IGplnys as SYFn~orp . ~. ~. .S
`~~l: ~ I~a feregaf"!l. ,U , .~~ii ~ .aY!haAzed ~'::.:: Ð; -= :; : :: ~
`~_~:" 11"","0" la aA" ar ",are at ..!(n & pa.aAI a~i " ~ ". ;;i~;'~ -;~ A
`:::~~~~:=~;~~~~~vle06 provtaed ~y SymmerpRI)(, aAd AKTI\£ .
`1:89 9€luipment f'oviàod ay AKTA iASêflomting invontioflÐ liooooeEl ta J\KTJ\ herel:ndor
`wfthot further QonsiåeF3tion.
`
`4. Symmorphix understands and agrees that intellectual property conceived or received by
`AKT A employees (including those individuals named in Section 9 of this Agreement) during
`the period of their respective employment is owned by AKTA. Nothing in this Agreement
`shall transfer any ownership right in any intellectual propert owned by AKTA. including all
`rights contained in patent applications and invention disclosures held by AKT A.
`Notwithstanding the presumption, contained within those certain written agreements with
`
`

`

`Case 5:20-cv-05676-EJD Document 42-10 Filed 12/07/20 Page 6 of 8
`ADP CORNING NY
`01/08/99 16: 01 iS : 05/05 NO: 971
`it 6079747097
`
`AKTA, that AKTA owns all inventions disclosed by AKTA employees and related to the work
`done for AKT A after leaving AKT A employment. the parties hereto agree that:
`· Any invention in the field of sputtered silicon deposition technology conceived 9f
`develøf'od by any of the individuals named in Section 9 of this Agreement on or
`before December 31, 1998, shall be owned by AKT A;
`· Symmorphix and AKTA shall cooperate to provide any documentation, filing, and
`execution required to fulfill or effect this provision. including specifcally alf patent
`matters;
`· AKTA does not own and shall not claim any right 1=:.".":'" Ha9R6e g"'Rt ia
`AKT:\ Eiøtailoå in ~e9tian 3 of thiG Ekhibit C of this-l----_~ . ____ to intellectual property
`devele~oo conceived by Symmorphix on or after January 1, 1999;
`· AKTA does not own and shall not claim any right in any other proprietary propert of
`Symmorphix which was developed by or for Symmorphix on or after November 1,
`1998. including without limitation business plans and company organization of
`Symmorphix.
`
`5. Symmorphix shall not disclose any information which is proprietary to AKTA to any third
`part without prior written approval by a duly.authorized AKTA offcial, and then only under
`the provisions of an AKTA-approved non-disclosure agreement. Likewise. AKTA shall not
`disclose any information which is proDrietarv to Svmmorphix to any third ~a~ without Drior
`writen aoproval by a duly-authorized Symmorohix offcial, and then onlv ~nd~r the
`provisions of a Symmorohix-aooroved non-disclosure aareement.
`
`6. In the event that AKTA elects not to manufacture PVD systems (either existing or new
`generation models), AKTA wil endeavor to make appropriate arrangements to support
`Symmorphix (which ~sha" involve the transfer of information and/or rights to
`Symmorphix or a third party selected by AKTA) and the license in Section 38 of this Exhibit
`of this A reement shall extend to an e ui ment urchased or otherwise obtained by
`Svmmorohix from sources other than AKTA and to anv EQuioment which mav have been or
`may be altered bv any third oart.
`
`7. If Symmorphix is or is about to be acquired
`
`by an independent third part, or is otherwise
`preparing to merge. combine, or sell substantially alf of its assets or otherwise change its
`corporate status, :",~T"iX may r..~Y96 reaco~abl9 a~9:a.: ::n~= ::~oamiRg
`the Sbl9jeet mattr of tAIS I\§ momo nt, and I\KT!\ will nogotI3---I- _ ~_ . _ fa _._ __ ___
`~ru:ea6eAably mjoct any SoSR rOEflJoGUhis agreement may be assigned by Svmmorohix to
`such third oart or new organization with notice to but without the consent of AKTA
`
`provided that such assignee is not then in direct comoetition with AKTA for sales of
`
`deoosition eQuioment.
`
`thin film
`
`

`

`Case 5:20-cv-05676-EJD Document 42-10 Filed 12/07/20 Page 7 of 8
`Case 5:20-cv-05676—EJD Document 42-10 Filed 12/07/20 Page 7 of 8
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`Case 5:20-cv-05676-EJD Document 42-10 Filed 12/07/20 Page 8 of 8
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