EX-10 2 phnk-loi.htm LETTER OF INTENT RELATING TO SUPPLY AGREEMENT BY AND
BETWEEN NVE CORPORATION AND PHONAK AG  
CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN REPLACED WITH ASTERISKS AND
FILED SEPARATELY WITH THE SEC UNDER A REQUEST FOR CONFIDENTIAL TREATMENT
PURSUANT TO RULE 24B-2 OR RULE 406.
 

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NVE Corporation [sml-logo.gif]
11409 Valley View Road
Eden Prairie, MN 55344-3617
www.nve.com

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CONFIDENTIAL

May 10, 2010

Mr. Marcel Hausmann
Phonak AG
Laubisrütistrasse 28
CH-8712 Stäfa
Switzerland

Dear Mr. Hausmann,

This Letter of Intent confirms the understandings between NVE Corporation, a
Minnesota corporation (“NVE”), and Phonak AG, an entity as defined in Section
1.5 of the Supply Agreement executed May 1, 2009 by and between NVE and Phonak
(“Phonak”). By executing this Letter of Intent, the parties agree to amend the
Supply Agreement executed May 1, 2009 by and between NVE and Phonak (the “Supply
Agreement”).

The terms of the Supply Agreement amendment shall be as follows:

1. Term
The term of the Supply Agreement shall be extended through March 31, 2015.

2. Products
Products within the scope of the Supply Agreement (“Products”) shall be expanded
to include NVE part number ** spintronic magnetic sensors.

3. Usage
During the extended term of the Supply Agreement, Phonak shall agree to purchase
at least ** of the unit volume of magnetic sensors used in Phonak’s hearing
instruments to detect the presence of telephones or other audio devices.
Magnetic sensors subject to this requirement shall include the “Easy Phone”
feature in Phonak’s hearing instruments.

4. Pricing
Starting on the execution date of this Letter of Intent, NVE agrees to provide
the following ** pricing to Phonak for Products:

 Period Agreement
Date to 31
 March 2011  1 April
2011 to 31
  March 2012  1 April
2012 to 31
 March 2013  1 April
2013 to 31
 March 2014 1 April
2014 to 31
 March 2015  Volume      **    $** $** $** $** $** ** $** $** $** $** $** ** $**
$** $** $** $** ** $** $** $** $** $** ** $** $** $** $** $**

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The specified pricing assumes that Phonak will migrate a substantial portion of
its purchases to NVE’s new ** Products over the next few years. NVE and Phonak
will mutually define targets for Product part type volume mix in the Supply
Agreement amendment.

5. Original Agreement and Confidentiality
Except as specifically described herein, nothing in this Letter of Intent is
intended to eliminate, modify, or otherwise amend the terms of the Supply
Agreement, including the confidentiality provisions of Section 16 therein. The
provisions of Section 16 of the Supply Agreement also apply to this Letter of
Intent.

If this Letter of Intent is acceptable to you, please execute the acknowledgment
appearing below on the two copies provided to you and return one of the copies
to the undersigned no later than May 12, 2010. This Letter of Intent may be
executed via fax.

Sincerely,
 

NVE Corporation
 
 
By  /s/ Daniel A. Baker 
Daniel A. Baker
President and CEO

Acknowledged and agreed to this
12 day of May, 2010.

Phonak AG

By  /s/ Paul Schurter 
 Paul Schurter , Corporate Procurement
      Name                      Title

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