Exhibit 10.6

 

CERTAIN INFORMATION (INDICATED BY “[***]”) IN THIS EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

TOSHIBA

 

Toshiba America Electronic Components, Inc.

2950 Orchard Parkway, San Jose, CA 95131

 

Design and Production Agreement

 

Amendment #2

 

Netlist Inc.

 

This Amendment #2 (“Amendment #2”) to the Register ASIC Design and Production
Agreement, dated July 31, 2008, as amended (TAEC#27N1242613) (“Agreement”) is
between Toshiba America Electronic Components, Inc., with a principal place of
business at 19900 MacArthur Boulevard, Suite 400, Irvine, CA 92612 (“TAEC”) and
Netlist Inc. with a place of business at 51 Discovery, Suite 150 Irvine, CA
92618 (“Customer”) and sets out the terms and conditions under which TAEC will
design the product identified herein for Customer, This Amendment is effective
as of the date finally executed below (“Effective Date”).

 

1.                                      Project Name

 

Register ASIC

 

2.                                      New Schedule

 

The parties agree to delete the contents of Section 4 of the Agreement,
Schedule, and replace it with the following

 

Major Project Milestones

 

Event

 

Target Date/Completed

[***]

 

[***]

[***]

 

[***]

[***]

 

[***]

[***]

 

[***]

[***]

 

[***]

[***]

 

[***]

[***]

 

[***]

[***]

 

[***]

[***]

 

TBD

[***]

 

TBD

[***]

 

TBD

[***]

 

TBD

 

Production turnaround time:  [***] working weeks.

 

Schedule is provisional.

 

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3.                                      New Internal/External IP

 

The parties agree to delete the contents of Section 7 of the
Agreement, Internal/External IP and replace it with the following:

 

Internal IP:

[***]

 

External IP:

[***]

 

Testing of Internal and External IP will proceed as set forth in the Product
Testing Agreement between the parties (TAEC# 121ANN311)

 

Customer will he responsible for any and all support, Defect/Bug fixes, upgrades
and/or maintenance that may be required for the External IP.

 

Customer is responsible for validating the External IP as used in the design.
TAEC will generate test vectors for manufacturing testing of External IP as
described in the Register DFT specification.

 

4.                                      Addition to Section 9, Non-Recurring 
Engineering Charges (“NRE”)

 

The parties agree to add the following provision to Section 9 of the Agreement,
Non-Recurring

 

Engineering Charges (“NRE”):

 

9.5                                 [***]

 

TAEC will be responsible [***] and [***] verification of any [***]. Customer
agrees that [***] of [***] is Customer’s responsibility and TAEC does not assume
any portion of financial cost incurred by Customer in [***] or [***] any [***].
In the event any [***] is identified in the [***] after TAEC has procured such
[***], then TAEC will communicate in writing to Customer such [***] provider
notification along with any [***] associated with fixing such [***], Customer
may choose to [***] this [***] at its own discretion. TAEC will not undertake to
[***] until Customer so requests in writing and the parties have agreed on a
[***] for such work. If Customer requests TAEC to repair the [***] in the
[***],[***] will be calculated as set forth in Section 9.2. [***], at its sole
discretion, may choose to  [***]for additional [***] resulting from any [***]
which [***] believes has occurred as a result of [***] actions and which was not
present in the [***] upon receipt from the [***].

 

--------------------------------------------------------------------------------

 

5.                                      Additional Features  Non-Recurring
Engineering Charges and Payment Schedule

 

5.1                                 Customer agrees to pay non-recurring
engineering charges (“Additional Features NRE”) to TAEC for support of design
changes. Support includes:

 

[***]

 

5.2                                 The Additional Features WE will be
calculated according to the resources expended by TAEC.  Which will be charged
at the rate of US$[***] per full-time-equivalent person per week.  TAEC will
provide a weekly update to Customer regarding resources expended.

 

TAEC estimates that the Additional Features NRE for this Register design will be
US$[***] or [***].  This estimate is subject to change.

 

5.3                                 The Additional Features NRE will be payable
as fellows:

 

1.                                       US$[***] ([***]% of estimated
Additional Features NRE) upon [***] or [***], whichever is earlier.

 

2.                                       The balance (total person-weeks
actually expended, less US$[***]), upon [***] together with test lugs showing
successful completion of the Toshiba Testing as defined in the Product Testing
Agreement between the parties.

 

For the avoidance of doubt, the Additional Features NM: payable under this
Amendment #2 is in addition to and does not replace the NRE payable under the
Agreement and/or Amendment #1.

 

6.                                      Cancellation

 

6.1                                 If Customer wishes to discontinue the
project set forth in this Amendment #2 prior to tapeout, then Customer shall pay
TAEC US$[***] (“Additional Features Cancellation Fee”). In addition, TALC
reserves the right to invoice Customer for any resources expended by TAEC prior
to cancellation in excess of 14.88 person-weeks. The Additional Features
Cancellation Fee shall be offset by any amount of the Additional Features NRE
already paid to TAEC by Customer.

 

6.2                                 In the event that Customer unilaterally
fails to provide information, data, or approvals necessary for TAEC to proceed
with the project for a period of [***] from TAEC’s initial request for such
information, data, or approvals, TAEC reserves the right to deem the project set
forth in this Amendment #2 cancelled and assess the Additional Features
Cancellation Fee.

 

--------------------------------------------------------------------------------

 

Except as modified herein, all other terms and conditions of the Agreement shall
remain in full force and effect per their terms.

 

 

Toshiba America Electronic Components, Inc.

 

NetList Inc.

 

 

 

/s/ Takeshi Iwamoto

 

/s/ Gail Itow

Signature

 

Signature

 

 

 

 

 

Gail Itow, CFO

Takeshi Iwamoto VP, Customer SoC & Foundry Business Unit

 

Printed Name and Title

Printed Name and Title

 

 

 

 

3/5/10

3/10/10

 

Date

Date

 

 

 

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