- 21 - "The Joint Development Agreement shall prevail over this Agreement." The purchase agreement also stated that [CV] shall get the benefit of lower prices that are given to other customers of * * * [Sun] for current and future products that are sold on terms and conditions that are the same as the terms and conditions offered to * * * [CV]. If * * * [Sun] does not offer * * * [CV] a price equal to the lowest price being offered to such other customer of * * * [Sun] because the terms and conditions being offered to that customer are different from those offered to * * * [CV], * * * [CV] shall have the option to accept the lower price on the same terms and conditions as are being offered to the other customer. Terms and conditions shall include, but not be limited to, such items as payment terms, manufacturing rights, quantities, technology exchanges, warranties and up- front investment by a purchaser. Pursuant to the investment agreement, Sun agreed to issue two stock warrants to CV to provide a further "incentive for an ongoing business relationship." The exercise of the first stock warrant was contingent upon CV’s purchase of $20 million of products (including royalties paid by CV to Sun pursuant to the joint development agreement) within 36 months of the first shipment by Sun to CV; the exercise of the second warrant required $30 million of purchases within the same 36-month period. The stock warrants were exercisable in whole or in part at any time within 5 years after they first became exercisable. The investment agreement provided in relevant part: Sun and CV have entered into a Joint Development Agreement of even date * * * providing for the sharing by the parties of certain technologies, for the manufacture by CV of certain reasonable workstationPage: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Next
Last modified: May 25, 2011