Exhibit 10.5

 

AMENDMENT dated as of April 22, 2004 (this “Amendment”) to (a) the Pledge
Agreement dated as of August 4,1999, as amended and restated as of March 3, 2003
(as amended, supplemented or otherwise modified from time to time and in effect
on the date hereof, the “Pledge Agreement”), among SEMICONDUCTOR COMPONENTS
INDUSTRIES, LLC, a Delaware limited liability company (the “Borrower”), ON
SEMICONDUCTOR CORPORATION, a Delaware corporation (“Holdings”), the subsidiaries
of Holdings party thereto (together with the Borrower and Holdings, the
“Pledgors”) and JPMORGAN CHASE BANK (formerly known as THE CHASE MANHATTAN BANK)
(“JPMCB”), as collateral agent (in such capacity, the “Collateral Agent”) for
the Secured Parties (as defined therein), and (b) the Security Agreement dated
as of August 4,1999, as amended and restated as of March 3, 2003 (as amended,
supplemented or otherwise modified from time to time and in effect on the date
hereof, the “Security Agreement”), among the Borrower, Holdings, the
subsidiaries of Holdings party thereto (together with the Borrower and Holdings,
the “Grantors”) and JPMCB, as Collateral Agent.

 

A. Reference is made to the Amendment and Restatement Agreement (the “Amendment
and Restatement Agreement”) dated April     , 2004 among Holdings, the Borrower,
the Lenders party thereto and JPMCB, as Administrative Agent, which, among other
things, amends and restates the Credit Agreement dated as of August 4, 1999, as
amended and restated as of November 25, 2003 (the “Existing Credit Agreement”)
among Holdings, the Borrower, the lenders party thereto and JPMCB, as
Administrative Agent.

 

B. Pursuant to Section 5(e) of the Amendment and Restatement Agreement, the
Restatement Lenders have consented to the amendment of certain provisions of the
Pledge Agreement and the Security Agreement to implement the provisions of the
Existing Credit Agreement as amended and restated pursuant to the terms of the
Amendment and Restatement Agreement (the “Restated Credit Agreement”).

 

C. The parties hereto wish to amend the terms of the Pledge Agreement and the
Security Agreement to effect such amendments as authorized by the Amendment and
Restatement Agreement.

 

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Accordingly, in consideration of the mutual agreements herein contained and
other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, and subject to the conditions set forth herein, the parties
hereby agree as follows:

 

SECTION 1. Defined Terms. Capitalized terms used but not defined herein shall
have the meanings assigned to such terms in the Restated Credit Agreement, and
if not defined therein, in the Pledge Agreement or the Security Agreement, as
applicable, each as amended hereby.

 

SECTION 2. Amendment to the Pledge Agreement. The Pledge Agreement is hereby
amended as follows:

 

  (a) Section 1(b)(iii) of the Pledge Agreement is hereby amended to insert the
text “, other than promissory notes evidencing Indebtedness of Holdings, the
Borrower and each Subsidiary that is owing to any Loan Party in an amount less
than $500,000 and not exceeding $5,000,000 in the aggregate” before the text
“(the “Pledged Debt Securities”)”.

 

  (b) Section 2(b) of the Pledge Agreement is hereby amended to insert the text
“, provided that no Pledgor shall have any such obligation with respect to any
Indebtedness for borrowed money that is owing to any Loan Party in an amount
less than $500,000 and not exceeding $5,000,000 in the aggregate” before the
text “.”.

 

SECTION 3. Amendment to the Security Agreement. The Security Agreement is hereby
amended as follows:

 

  (a) The definition of “Collateral” is hereby amended by substituting the text
“and (iii)” for the text”, (iii)’.

 

  (b) The definition of “Collateral” is further amended by inserting the text
“and (iv) any promissory note evidencing Indebtedness of Holdings, the Borrower
and each Subsidiary that is owing to any Loan Party in an amount less than
$500,000 and not exceeding $5,000,000 in the aggregate” before the text “.”.

 

  (c) Annex 1 to the Security Agreement is amended by replacing it with Exhibit
A attached hereto.

 

SECTION 4. Representations and Warranties. Each of Holdings and the Borrower
represents and warrants to the Administrative Agent and to each of the Lenders
that:

 

  (a)

This Amendment has been duly authorized, executed and delivered by each of
Holdings, the Borrower, the other Pledgors listed in Schedule I to the Pledge
Agreement and the other Grantors listed in Schedule I to the Security Agreement
and constitutes a legal, valid and binding obligation of Holdings, the Borrower,
such Pledgors and such Grantors, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium

 

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or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in equity
or at law.

 

  (b) After giving effect to this Amendment, each of the representations and
warranties of Holdings and the Borrower set forth in the Loan Documents is true
and correct on and as of the date hereof, except to the extent such
representations and warranties expressly relate to an earlier date, in which
case such representations and warranties are true and correct as of such earlier
date.

 

  (c) Immediately after giving effect to this Amendment, no Default shall have
occurred and be continuing.

 

SECTION 5. Effectiveness. This Amendment shall become effective as of the date
first above written when (a) Section 5 of the Amendment and Restatement
Agreement shall have become effective pursuant to the terms thereof and (b) the
Administrative Agent shall have received counterparts of this Amendment that,
when taken together, bear the signatures of Holdings, the Borrower, the other
Pledgors listed on Schedule I to the Pledge Agreement, the other Grantors listed
on Schedule I to the Security Agreement and the Collateral Agent.

 

SECTION 6. Pledge Agreement and Security Agreement. Except as specifically
waived or amended hereby, each of the Pledge Agreement and the Security
Agreement shall continue in full force and effect in accordance with the
provisions thereof as in existence on the date hereof. After the date hereof,
any reference to the Pledge Agreement or the Security Agreement shall mean the
Pledge Agreement or Security Agreement, as applicable, as amended or modified
hereby. This Amendment shall be a Loan Document for all purposes.

 

SECTION 7. Counterparts. This Amendment may be executed in two or more
counterparts, each of which shall constitute an original but all of which when
taken together shall constitute a single contract. Delivery of an executed
counterpart of a signature page of this Amendment by facsimile or other
electronic transmission shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

SECTION 8. Applicable Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 9. Expenses. The Borrower agrees to reimburse the Collateral Agent for
its reasonable out-of-pocket expenses in connection with this Amendment,
including the fees, charges and disbursements of Cravath, Swaine & Moore LLP,
counsel for the Collateral Agent.

 

SECTION 10. Headings. The Section headings used herein are for purposes of
reference only, are not part of this Amendment and are not to affect the
construction of, or be taken into consideration in interpreting, this Amendment.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their duly authorized officers, all as of the date and year first
above written.

 

ON SEMICONDUCTOR CORPORATION,

by   /s/    DONALD A. COLVIN        

Name:

  Donald A. Colvin

Title:

  Senior Vice President and Chief Financial Officer SEMICONDUCTOR COMPONENTS
INDUSTRIES, LLC, by   /s/    DONALD A. COLVIN        

Name:

  Donald A. Colvin

Title:

  Senior Vice President and Chief Financial Officer

SCG INTERNATIONAL DEVELOPMENT LLC,

by   /s/    DONALD A. COLVIN        

Name:

  Donald A. Colvin

Title:

  Senior Vice President and Chief Financial Officer SCG (MALAYSIA SMP) HOLDING
CORPORATION, by   /s/    DONALD A. COLVIN        

Name:

  Donald A. Colvin

Title:

  Senior Vice President and Chief Financial Officer

SCG (CZECH) HOLDING CORPORATION,

by   /s/    DONALD A. COLVIN        

Name:

  Donald A. Colvin

Title:

  Senior Vice President and Chief Financial Officer

 

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SCG (CHINA) HOLDING CORPORATION,

by   /s/    DONALD A. COLVIN        

Name:

  Donald A. Colvin

Title:

  Senior Vice President and Chief Financial Officer SEMICONDUCTOR COMPONENTS
INDUSTRIES PUERTO RICO, INC., by   /s/    DONALD A. COLVIN        

Name:

  Donald A. Colvin

Title:

  Senior Vice President and Chief Financial Officer SEMICONDUCTOR COMPONENTS
INDUSTRIES OF RHODE ISLAND, INC., by   /s/    DONALD A. COLVIN        

Name:

  Donald A. Colvin

Title:

  Senior Vice President and Chief Financial Officer SEMICONDUCTOR COMPONENTS
INDUSTRIES INTERNATIONAL OF RHODE ISLAND, INC., by   /s/    DONALD A.
COLVIN        

Name:

  Donald A. Colvin

Title:

  Senior Vice President and Chief Financial Officer

 

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JPMORGAN CHASE BANK,

as Collateral Agent,

by   /s/    EDMOND DEFOREST        

Name:

  Edmond DeForest

Title:

  Vice President

 

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EXHIBIT A

Annex 1 to the

Security Agreement

 

[FORM OF]

 

PERFECTION CERTIFICATE

 

Reference is made to (a) the Credit Agreement, dated as of August 4, 1999, as
amended and restated as of April 22, 2004 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among ON SEMICONDUCTOR
CORPORATION (“Holdings”), SEMICONDUCTOR COMPONENTS INDUSTRIES, LLC (the
“Borrower”), the lenders from time to time party thereto (the “Lenders”), and
JPMORGAN CHASE BANK, as administrative agent for the Lenders (in such capacity,
the “Administrative Agent”), and CREDIT SUISSE FIRST BOSTON, as joint lead
arrangers, joint bookrunners and co-syndication agents, (b) the Security
Agreement, dated as of August 4,1999, as amended and restated as of March 3,
2003, among the Issuers, the Guarantors (as defined therein) and JPMORGAN CHASE
BANK, as collateral agent (in such capacity, the “Collateral Agent”).
Capitalized terms used herein but not defined herein have the meanings assigned
to them in the Security Agreement.

 

The undersigned, a Financial Officer of each of Holdings and the Borrower,
hereby certify to the Collateral Agent and to each other Secured Party as
follows:

 

1. Names. (a) The exact legal name of each Grantor, as such name appears in its
respective certificate of incorporation, is as follows:

 

(b) Set forth below is each other legal name each Grantor has had in the past
five years, together with the date of the relevant change:

 

(c) Except as set forth in Schedule 1 hereto, no Grantor has changed its
identity or corporate structure in any way within the past five years. Changes
in identity or corporate structure would include mergers, consolidations and
acquisitions, as well as any change in the form, nature or jurisdiction of
corporate organization. If any such change has occurred, include in Schedule 1
the information required by Sections 1 and 2 of this certificate as to each
acquiree or constituent party to a merger or consolidation.

 

(d) The following is a list of all other names (including trade names or similar
appellations) used by each Grantor or any of its divisions or other business
units in connection with the conduct of its business or the ownership of its
properties at any time during the past five years:

 

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(e) Set forth below is the organizational identification number, if any, issued
by the jurisdiction of formation of each Grantor that is an organization that is
registered in any other state other than the State of Delaware:

 

(f) Set forth below is the Federal Taxpayer Identification Number of each
Grantor:

 

Grantor

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Federal Taxpayer Identification Number

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2. Current Locations. (a) The chief executive office of each Grantor is located
at the address set forth opposite its name below:

 

Grantor

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Mailing Address

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County

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   State

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(b) Set forth below opposite the name of each Grantor are all locations where
such Grantor maintains any books or records relating to any Accounts Receivable
or General Intangibles (with each location at which chattel paper, if any, is
kept being indicated by an “*”):

 

Grantor

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Mailing Address

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County

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   State

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(c) The jurisdiction of formation of each Grantor that is a registered
organization is set forth opposite its name below:

 

Grantor

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Mailing Address

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County

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   State

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(d) Set forth below opposite the name of each Grantor are all the locations
where such Grantor maintains any Inventory for periods in excess of one month or
Equipment with a fair market value in excess of $50,000 U.S. dollars or other
Collateral with a fair market value in excess of $50,000 U.S. dollars not
identified above:

 

Grantor

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Mailing Address

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County

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   State

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(e) Set forth below opposite the name of each Grantor are all the places of
business of such Grantor not identified in paragraph (a), (b), (c) or (d) above:

 

Grantor

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Mailing Address

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County

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   State

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(f) Set forth below opposite the name of each Grantor are the names and
addresses of all Persons other than such Grantor that have possession of any of
the Collateral of such Grantor for periods in excess of one month:

 

Grantor

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Mailing Address

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County

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   State

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3. Unusual Transactions. All Accounts Receivable have been originated by the
Grantors and all Inventory has been acquired by the Grantors in the ordinary
course of business.

 

4. File Search Reports. File search reports have been obtained from each Uniform
Commercial Code filing office identified with respect to such Grantor in Section
2 hereof, and such search reports reflect no Liens against any of the Collateral
other than those permitted under the Credit Agreement.

 

5. UCC Filings. UCC financing statements have been filed in the Uniform
Commercial Code filing office in the jurisdiction in which each Grantor is
located and, to the extent any of the Collateral is comprised of fixtures in the
proper local jurisdiction, as set forth with respect to such Grantor in Section
2 hereof.

 

6. Schedule of Filings. Attached hereto as Schedule 6 is a schedule setting
forth, with respect to the filings described in Section 5 above, each filing and
the filing office in which such filing is to be made.

 

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7. Equity Interests. Attached hereto as Schedule 7 is a true and correct list of
all the issued and outstanding Equity Interests (as defined in the Credit
Agreement) owned by Holdings and each Subsidiary of Holdings (including the
Borrower). Also set forth on Schedule 7 is each equity investment of Holdings
and each Subsidiary of Holdings (including the Borrower) that represents 50% or
less of the equity of the entity in which such investment was made.

 

8. Debt Instruments. Attached hereto as Schedule 8 is a true and correct list of
all instruments, including any promissory notes, and other evidence of
indebtedness held by Holdings and each Subsidiary of Holdings (including the
Borrower), including all intercompany notes between Holdings and each Subsidiary
of Holdings (including the Borrower) and each Subsidiary of Holdings (including
the Borrower) and each other such Subsidiary of Holdings (including the
Borrower).

 

9. Advances. Attached hereto as Schedule 9 is (a) a true and correct list of all
advances made by Holdings to any Subsidiary of Holdings (including the Borrower)
or made by any Subsidiary of Holdings (including the Borrower) to Holdings or to
any other Subsidiary of Holdings (including the Borrower) (other than those
identified on Schedule 8), which advances will be on and after the date hereof
evidenced by one or more intercompany notes pledged to the Collateral Agent
under the Pledge Agreement (as defined in the Credit Agreement) and (b) a true
and correct list of all unpaid intercompany transfers of goods sold and
delivered by or to Holdings or any Subsidiary of Holdings (including the
Borrower), except for those expected to be settled/paid in the subsequent month
in the normal course of business.

 

10. Mortgage Filings. Attached hereto as Schedule 10 is a schedule setting
forth, with respect to each Mortgaged Property and each Restatement Mortgaged
Property (as such terms are defined in the Credit Agreement), (a) the exact name
of the Person that owns such property as such name appears in its certificate of
incorporation or other organizational document, (b) if different from the name
identified pursuant to clause (a), the exact name of the current record owner of
such property reflected in the records of the filing office for such property
identified pursuant to the following clause and (c) the filing office in which a
Mortgage (as defined in the Credit Agreement) with respect to such property must
be filed or recorded in order for the Collateral Agent to obtain a perfected
security interest therein.

 

11. Intellectual Property. Attached hereto as Schedule 11(A) is a schedule
setting forth all of each Grantor’s Patents and registered Trademarks and Patent
and Trademark applications, including the name of the registered owner or
applicant, as applicable, and the registration or application number, as
applicable, of each Patent and registered Trademark or Patent or Trademark
application owned by any Grantor, in proper form for filing with the United
States Patent and Trademark Office, and a schedule setting forth all of each
Grantor’s material Patent Licenses and material Trademark Licenses. Attached
hereto as Schedule 11(B) is a schedule setting forth all of each Grantor’s
registered Copyrights, including the name of the registered owner and the
registration number of each Copyright owned by any Grantor, in proper form for
filing with the United States Copyright Office, and a schedule setting forth all
of each Grantor’s material Copyright Licenses that grant right with respect to
registered Copyrights.

 

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IN WITNESS WHEREOF, the undersigned have duly executed this certificate on this
[    ]th day of [            ].

 

ON SEMICONDUCTOR CORPORATION,

By    

Name:

   

Title:

  [Financial Officer] SEMICONDUCTOR COMPONENTS INDUSTRIES, LLC, By    

Name:

   

Title:

  [Financial Officer]

 

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