THE CONTRACT FOR THE JOINT VENTURE
OF IMP AND MINGHUA MICROELECTRONIC INVESTMENT CO. LTD

Chapter 1 General Provisions

In accordance  with the Law of the People's  Republic of China on Joint ventures
Using  Chinese  and  Foreign  Investment  ("the  Joint  Venture  Law") and other
relevant  Chinese  laws  and  regulations,  Minghua  Microelectronic  Investment
Company and IMP Company, in accordance with the principle of equality and mutual
benefit  and through  friendly  consultations,  agree to set up a joint  venture
enterprise by the investment of IMP Company and Minghua Company in Ningbo of the
People's Republic of China.

Chapter 2 Parties of the Joint venture

Article 1

Parties to this contract are as follows:

1.1  Minghua   Microelectronic   Investment   Company  (the   original   Minghua
Microelectronic  Company  hereinafter  referred  to  as  Party  A),  is a  legal
enterprise  in  accordance  with  the  law of the  People's  Republic  of  China
(hereinafter referred to as China) in China,  registered with the license number
of 3302001004703, and its legal address is at:

[Chinese  translation  not  provided] 578 [Chinese  translation  not provided] 7
[Chinese translation not provided].

Legal representative: Name: [Chinese characters] (Zhang Er-bao)
                      Position: Chairman of the Board
                      Nationality: Chinese

1.2 IMP Company  (hereinafter  referred to as Party B), is a legal enterprise in
accordance  with the American law,  registered in the U.S.,  with license number
IMPXC. Its legal address is at:

                    2830 North First St., San Jose, CA 94134

Legal representative: Name: Subbarao Pinamaneni
                      Position: Chairman of the board
                      Nationality: American

1.3 Both parties are legal person in accordance  with  respective  law, with the
right to conclude and perform the contract.

Chapter 3 Establishment of the joint venture company

Article 2

In  accordance  with the Joint Venture Law and other  relevant  Chinese laws and
regulations,  both parties of the joint  venture agree to set up a joint venture
limited liability company (hereinafter referred to as the joint venture company)
in Ningbo, China.

Article 3

The name of the joint venture is [Chinese translation not unavailable].

The name in foreign language is IMP&MH Microelectronic Co. Ltd.

The legal address of the joint venture company is at:  [Chinese  translation not
provided]  578 [Chinese  translation  not provided] 7 [Chinese  translation  not
provided]

Article 4

All  activities  of the joint  venture  company  shall be  governed by the laws,
decrees and pertinent rules and regulations of the People's Republic of China.

Article 5

The  Organization  form of the joint  venture  company  is a  limited  liability
company. Each party to

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the joint  venture  company is liable to the joint  venture  company  within the
limit of the  capital  subscribed  by it. The  profits,  risks and losses of the
joint  venture  company  shall be shared by the parties in  proportion  to their
contributions to the registered capital.

Chapter 4 The Purpose, Scope and Scale of Production and Business

Article 6

The goals of the  parties to the joint  venture  in the  business  specified  at
Article 7 are to enhance  economic  co-operation  and  technical  exchanges,  to
improve  the  product  quality,  develop new  products,  and gain a  competitive
position  in the world  market in quality  and price by  adopting  advanced  and
appropriate  technology  and  scientific  management  methods,  so as  to  raise
economic results and ensure satisfactory economic benefits for each investor.

Article 7

The  productive  and business  scope of the joint venture  company is to design,
develop,  produce and sell  Integrated  Circuits,  and  products  of  electronic
modules and software as well.

Article 8

The production scale of the joint venture company is as follows:

The  production  capacity of  semiconductor  electric  power devices and others,
after the joint  venture is put into  operation,  is 12,000  wafers per month (5
inch wafer, 12 masks process,  processing level 0.65 u m.). The production scale
may be  increased  up to  40,000  with the  development  of the  production  and
operation.  The wafer varieties may be developed into 6~8 inch (processing level
0.5 u m.).

Chapter 5 Total Amount of Investment and the Registered Capital

Article 9

The total  amount of  investment  of the joint  venture  company  is RMB  248.24
million Yuan (including US dollar 4.0 million).

Article 10

Investment  contributed by the parties is RMB 152.0 million Yuan,  which will be
the registered capital of the joint venture company. Of which:

Party A shall pay RMB 76.0 million Yuan, accounting for 50%;

Party B shall pay RMB 76.0 million Yuan, accounting for 50%.

Article 11

Both Party A and Party B will contribute the following as their investment:

11.1 Party A:

machines and equipment RMB 32.0 million Yuan premises RMB 40.20 million Yuan the
right to the use of the site RMB 3.8 million Yuan RMB 76.0 million Yuan in all.

11.2 Party B:

machines and  equipment  RMB 39.92  million Yuan  industrial  property RMB 36.08
million Yuan, RMB 76.0 million Yuan in all.

When  contributing   capital  goods   (Attachment  3)  or  industrial   property
(Attachment  2, 4, 6, 7) as  investment,  Party A and Party B shall  conclude  a
separate agreement to be a part of this main contract.

Article 12

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The registered capital of the joint venture company shall be paid by Party A and
Party  B  respectively,  according  to  their  respective  proportion  of  their
investment.  The  machines  and  equipment  capital of party B can be to Ningbo,
China, in three installments.  The payment arrangement proposal is in Attachment
1.

Article 13

The shortage  between the total  investment and registered  capital of the joint
venture  shall be lent  from  bank,  especially  from the bank in China or other
resources.  The joint  venture  company  shall handle the matter of the required
bank guarantees for the loan.

Except  for the  about  loan,  judged  by the  board of  directors  of the joint
venture,  the working  capital  dollar or other capital  dollar  required by the
joint  venture,  shall be lent  and the  joint  venture  shall  handle  the bank
guarantee.

If the joint venture  fails to get the loan,  the board shall raise the required
money from both parties according to the above proportion. Unless agreed by both
parties,  any party has no  obligation  to increase the  registered  capital for
providing with bank guarantees for the loan from the third party.

Article 14

Any  party  of the  contract  shall  not  assign  all or part of his  investment
subscribed  to a third party  without the  agreement  of the other party and the
approval from the examination and approval authority.

In case any  party to the joint  venture  intends  to assign  all or part of his
investment subscribed to a third party, the other party has preemptive right.

Article 15

Without  the  unanimous  approval of the board,  any  parties  shall not raise a
mortgage on all or part of his  investment or take all or part of his investment
as guarantor.

Chapter 6 Responsibilities of Each Party to the Joint venture

Article 16

Party A and Party B shall be respectively responsible for the following matters:

16.1 Responsibilities of Party A:

Providing  cash,  machinery and  equipment  and premises in accordance  with the
provisions of Chapter 5;

Handling of applications for approval, registration,  business license and other
matters  concerning the establishment of the joint venture company from relevant
departments in charge of China;

Processing the  application  for the right to the use of a site to the authority
in charge of the land;

Organizing  the design and  construction  of the premises and other  engineering
facilities of the joint venture company and in conultation with Party B;

Process import customs  declaration for the machinery and equipment  contributed
by Party B as investment  and arranging  the  transportation  within the Chinese
territory;

Contacting and settling the fundamental  facilities such as water,  electricity,
transportation etc.;

Appling for the possible tax benefit and reduction and other benefit;

Recruiting Chinese management personnel,  technical personnel, workers and other
personnel needed, and in conultation with Party B;

Assisting  foreign workers and staff in applying for entry visas,  work licenses
and handling their travel procedures;

Responsible for handling other matters entrusted by the joint venture company.

16.2 Responsibilities of Party B:

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Providing,  machinery and equipment,  industrial property ... in accordance with
the  provisions  of Chapter 5, and  assisting to raise the capital for the joint
venture;

Handling the matters  entrusted by the joint venture company,  such as selecting
and purchasing machinery and materials outside China, etc.;

Providing  necessary  technical  personnel  for  installing,  testing  and trial
production of the equipment as well as the  technical  personnel for  production
and inspecting;

Training the technical personnel and workers of the joint venture company;

Providing the technology, product to be manufactured and the market to the joint
venture  in  accordance  with  the  contract  and  responsible  for  the  stable
production of qualified  products of the joint  venture  company in the light of
design capacity within the specified period;

Responsible  for the sale of the joint  venture's  products  for the first three
years;

Responsible for other matters entrusted by the joint venture company.

Chapter 7 Transfer of Technology

Article 17

Party B shall transfer all the existing foundry processing technology, the IMP's
standard products processing  technology to the joint venture company. The major
contents of the transfer is in Attachment 2, which shall be signed the same time
with this contract.

Both sides agree that the transfered technology of products and processing shall
not be  transferred  to the third party in China  without the  agreement by both
sides.

Article 18

In case Party B fails to provide equipment and technology in accordance with the
provisions of this contract and the technology transfer agreement or in case any
deceiving or  concealing  actions are found,  Party B shall be  responsible  for
compensating  the  direct  losses  to Party A. Also if Party A fails to keep its
commitments  as  specified  with  respect to  factory,  cash and other  items as
specified, the losses suffered by the Party B will be paid by Party A.

Chapter 8 Trade Mark and Selling of Products

Article 19

"Trade mark  License  agreement"  (Attachment  6) shall be conclude  between the
joint  venture and Party B, all relevant  activities  concerning  the use of IMP
trade mark shall be in accordance with its provision.  The 4.0 million US dollar
payment to party B includes  the fee of using the IMP trade mark,  the  products
produced by the joint venture company can use the IMP trade mark.

Article 20

The products of the joint  venture  company will be sold both on the Chinese and
the  overseas  market,  the  export  portion  accounts  for  90% and 10% for the
domestic market, for the first three years. The products sold are those business
including  the wafers made for IMP's  products by the Joint  venture and the new
business brought in by the Joint venture Company.

Article 21

The joint  venture's  products  to be sold in China may be  handled by the joint
venture company directly.  This includes IMP standard products. In order to sell
IMP's standard products in an unified price, the Joint venture Company will sign
a separate sale agreement with IMP.

Article 22

Products  of the joint  venture  may be sold on  overseas  markets  through  the
following channels:

The joint venture  company may directly  sell its products on the  international
market, or the joint venture company may entrust Party B to sell its products.

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Chapter 9 The Board of Directors

Article 23

The date of  registration  of the joint venture company shall be the date of the
establishment of the board of directors of the joint venture company.

Article 24

The board of directors is composed of 9 directors, of which 5 shall be appointed
by Party A, 4 by Party B. The  chairman,  vice  chairman  of the board  shall be
appointed  respectively by one Party and the other Party. The term of office for
the directors,  chairman and vice-chairman is three years,  their term of office
may be renewed if continuously appointed by the relevant party.

The chairman shall be appointed by Minghua, the vice chairman by IMP;

The general manager/board member shall appointed by IMP, and four deputy general
managers shall be recommended by Minghua and approved by the board of directors.

However it is understood  that the goal of the Joint  venture is making  profit.
All the appointments will be made based on the goal.

Article 25

The  highest  authority  of the  joint  venture  company  shall be its  board of
directors.  It shall  decide  all major  issues  concerning  the  joint  venture
company:

1.    Amendment of the regulation of the joint venture;

2.    Termination of the joint venture;

3.    Mergence with the other economic units;

4.    Increase of the registered capital of the Joint venture;

5.    Acceptance,  alteration  or  termination  of the  labor  contract,  wages,
      welfare for the staff, etc.;

6.    Bonus share.

7.    Approval of annual financial report of the joint venture.

Article 26

Unanimous  approval  shall be required  for Article 25 term 1.2.3.  As for other
matters, approval by majority or a simple majority shall be required.

Article 27

The  chairman  of the board is the  legal  representative  of the joint  venture
company.  Should the chairman be unable to exercise his responsibilities for any
reason, he shall authorize the vice-chairman or any other directors to represent
the joint venture company temporarily.

Article 28

The board of  directors  shall  convene at least one  meeting  every  year.  The
meeting  shall be called and  presided  over by the  chairman of the board.  The
chairman may convene an interim  meeting  based on a proposal  made by more than
one third of the total number of  directors.  Minutes of the  meetings  shall be
placed on file.

Chapter 10 Business Management Office

Article 29

The joint  venture  company shall  establish a management  office which shall be
responsible for its daily management. The management office shall have a general
manager, 4 deputy general managers, by Party A and by Party B respectively.  The
general  manager and deputy  general  managers  whose terms of office is 3 years
shall be  appointed  by the board of  directors.  The general  manager  shall be
appointed from the non-chairman Party.

Article 30

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The  responsibility  of the general manager is to carry out the decisions of the
board and  organize  and  conduct  the  daily  management  of the joint  venture
company.  The deputy general  managers  shall assist the general  manager in his
work.

Article 31

In case of  graft or  serious  dereliction  of duty on the  part of the  general
manager and deputy general managers, the board of directors shall have the power
to dismiss them at any time.

Chapter 11 Purchase of Equipment

Article 32

The joint  venture is  responsible  for the purchase of required  equipment  and
apparatus, etc.

Article 33

In its purchase of required raw materials,  fuel, parts, means of transportation
and articles for office use,  etc.,  the joint venture  company shall give first
priority to purchase in China where conditions are the same.

Chapter 12 Labor Management

Article 34

Labor contract covering the recruitment,  employment, dismissal and resignation,
wages, labor insurance, welfare, rewards, penalties and other matters concerning
the staff and workers of the joint venture company shall be drawn up between the
joint  venture  company  and the labor union of the joint  venture  company as a
whole,  or the individual  employees in the joint venture  company in accordance
with the  Regulations of the People's  Republic of China on Labor  Management in
Joint Ventures Using Chinese and Foreign Investment and its Implementing  Rules.
The labor  contracts  shall, after being  signed,  be filed with the local labor
management department.

Article 35

The matters  concerning the employment of foreign staff shall be governed by the
relative regulations of China.

Chapter 13 Labor Union

Article 36

The task of the labor union is:

Protecting the rights and benefit of the staff in accordance with the law;

Assisting the joint venture to arrange welfare funds reasonably;

Taking  part in the  settlement  of the  dispute  between  staff  and the  joint
venture.

Article 37

Labor union  representative  has the right to deal with the management office of
the joint  venture for the  problems of the staff,  such as rewards,  penalties,
wages labor insurance, etc.

Article 38

The joint venture shall transfer 2% of the total wages of the staff as the funds
of labor union, in accordance with Chinese law and provisions.

Chapter 14 Taxes, Finance and Audit

Article 39

The joint venture  company shall pay taxes in accordance  with the provisions of
Chinese laws and other relative regulations.

Article 40

Staff  members and workers of the joint  venture  company  shall pay  individual
income tax according to the Individual  Income Tax Law of the People's  Republic
of China.

<PAGE>

Article 41

Allocations for reserve funds,  expansion funds of the joint venture company and
welfare funds and bonuses for staff and workers shall be set aside in accordance
with  the  provisions  of the  Joint  Venture  Law.  The  annual  proportion  of
allocations shall be decided by the board of directors according to the business
situation of the joint venture company.

Article 42

The fiscal year of the joint venture company shall be from January 1 to December
31 (IMP will prefer the fiscal year to match with IMP fiscal year which is April
1st to March 31st).  All vouchers,  receipts,  statistic  statements and reports
shall be  written  in  Chinese  and  English.  The  accounting  procedure  is in
Attachment 5.

Article 43

Financial  checking  and  examination  of the  joint  venture  company  shall be
conducted by an auditor  registered  in China and the results shall be submitted
to the board of directors and the general manager.

The joint venture shall  prepare the financial  statement  every quarter and the
year end result Which will also audited by IMP auditor.

Article 44

In the first three months of each fiscal  year,  the manager  shall  prepare the
previous year's balance sheet,  profit and loss statement and proposal regarding
the  disposal  of  profits,  and  submit  them to the  board  of  directors  for
examination.

Chapter 15 Insurance

Article 45

Insurance  policies of the joint venture company on various kinds of risks shall
be underwritten with the People's Republic of China.  Types,  value and duration
of insurance  shall be decided by the board of directors in accordance  with the
provisions of the People's Insurance Company of China.

Chapter 16 Duration of the Joint venture

Article 46

The duration of the joint venture company is 10 years. The establishment date of
the joint venture company shall be the date on which the business license of the
joint venture company is issued.

An  application  for the  extension of the  duration,  proposed by one party and
unanimously  approved  by the  board of  directors,  shall be  submitted  to the
Ministry of Foreign  Trade and  Economic  Cooperation  (or the  examination  and
approval  authority  entrusted by it) six months prior to the expiry date of the
joint venture.

Article 47

Upon  the  expiration  of the  duration,  or  termination  before  the  date  of
expiration of the joint venture,  liquidation  shall be carried out according to
the  relevant  laws.  The  liquidation  shall  be made in  accordance  with  the
proportion of investment contributed by Party A and Party B.

Chapter 17 The Amendment, Alteration and Termination of the Contract

Article 48

The  amendment  of the contract or other  appendices  shall come into force only
after a written agreement has been signed by Party A and Party B and approved by
the original examination and approval authority.

<PAGE>

Article 49

In case of  inability  to fulfil the  contract or to continue  operation  due to
heavy losses in successive  years as a result of force majeure,  the duration of
the joint  venture  and the  contract  shall be  terminated  before  the time of
expiration  after being  unanimously  agreed upon by the board of directors  and
approved by the original examination and approval authority.

Article 50

Should the joint venture  company be unable to continue its operation or achieve
its business  purpose due to the fact that one of the contracting  parties fails
to  fulfil  the   obligations   prescribed  by  the  contract  and  articles  of
association,  or seriously  violates the provisions of the contract and articles
of association,  that party shall be deemed to have unilaterally  terminated the
contract.  The other party  shall have the right to  terminate  the  contract in
accordance  with the  provisions of the contract  after approval by the original
examination and approval  authority,  and to claim damages. In case both Parties
of the joint venture company agree not to terminated the contract, the party who
fails to fulfil its obligations shall be liable for the losses caused thereby to
the joint venture company.

Chapter 18 Liability for Breach of Contract

Article 51

Should  either Party A or Party B fail to pay on schedule the  contributions  in
accordance with the provisions defined in Article 12 of this contract, the party
in breach shall pay to the other party 0.5% of the  contribution  starting  from
the first month after exceeding the time limit.  Should the party in breach fail
to pay  after 3  months,  1.5% of the  contribution  shall be paid to the  other
party,  who shall have the right to terminate  the contract and to claim damages
from the party in breach in accordance  with the provisions of Article 49 of the
contract.

Article 52

Should all or part of the contract and its  appendices be unable to be fulfilled
owing to the fault of one party,  the party in breach  shall bear the  liability
therefore.  Should  it be the  fault of both  parties,  they  shall  bear  their
respective liabilities according to the actual situation.

Chapter 19 Force Majeure

Article 53

Should  either of the parties to the contract be prevented  from  executing  the
contract by force majeure,  such as  earthquake,  typhoon,  flood,  fire, war or
other unforeseen events, and their occurrence and consequences are unpreventable
and  unavoidable,  the prevented  party shall notify the other party by telegram
without any delay, and within 15 days thereafter provide detailed information of
the events and a valid  document  for  evidence  issued by the  relevant  public
notary  organization  explaining the reason of its inability to execute or delay
the  execution  of all or part of the  contract.  Both  parties  shall,  through
consultations, decide whether to terminate the contract or to exempt part of the
obligations for implementation of the contract or whether to delay the execution
of the contract according to the effects of the events on the performance of the
contract.

Chapter 20 Applicable Law

Article 54

The formation, validity, interpretation, execution and settlement of disputes in
respect of this contract  shall be governed by the relevant laws of the People's
Republic of China.

Chapter 21 Settlement of Disputes

Article 55

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Any disputes  arising from the execution of, or in connection with, the contract
shall be settled through friendly consultations between both parties. In case no
settlement can be reached through consultations, the disputes shall be submitted
to the Foreign  Economic and Trade  Arbitration  Commission of the China Council
for the Promotion of International  Trade for arbitration in accordance with its
rules of procedure. The arbitral award is final and binding upon both parties.

Article 56

During the  arbitration,  the  contract  shall be observed  and enforced by both
parties except for the matters in dispute.

Chapter 22 Language

Article 57

The contract shall be written in Chinese and in English.  Both language versions
are  equally  authentic.  In  the  event  of any  discrepancy  between  the  two
aforementioned versions, the Chinese version shall prevail.

Chapter 23 Effectiveness of the Contract and Miscellaneous

Article 58

The appendices drawn up in accordance with the principles of this contract,  are
integral parts of this contract, including the project agreement, the technology
transfer agreement, the sales agreement etc.

Article 59

The contract  and its  attachments  shall come into force until  approved by the
relevent  top  management  administration  (before  that,  this  contract is not
legally effective).

Article 60

Should notices in connection  with any party's rights and obligations be sent by
either Party A or Party B by telegram or telex, etc., the written letter notices
shall be also required  afterwards.  The legal  addresses of Party A and Party B
listed in this contract shall be the posting addresses.

Article 61

The contract is signed in Ningbo,  China, by the authorized  representatives  of
both parties on ____________, ____________.

Note:  Attachment  1, 2, 3,  4, 5 and 6 have  the  same  legal  validity  to the
contract.

For Party A                                     For Party B
Ningbo Minghua Microelectronic
Investment Co.         IMP Inc


/s/ (sd ---)                                   /s/ (sd ---)
(Signature)                                    (Signature)

<PAGE>

Attachment 1 Payment Arrangement of Compensation by Minghua to IMP

1. U.S.$ 2.0M L/C for IMP on the signing  and coming into force of the  contract
within 15~30days.

________ release U.S.$ 0.75M on the receiving of IMP's project plan and complete
processing  documents the receiving of the shipping documents (the first lot) of
part of the first 50% of  equipment,  and within  one week  after the  technical
training starting;

_________ release U.S.$ 0.75M on the shipping  documents (the second lot) of the
first 50% of equipment;

_________  release the last U.S.$ 0.5M on the arrival  and  verification  of the
first 50% of equipment.

2. U.S.$ 1.0M L/C for IMP after 6 moths of commercial  production  and achieving
U.S.$6M sales revenue. After IMP receives the L/C, shipping of the second 50% of
equipment shall start.

_________  release U.S.$ 0.5M on the shipping  documents  (the third lot) of the
second 50% equipment;

_________  release the other U.S.$ 0.5M on the arrival and  verification  of the
second 50% of equipment.

3. The  remainder  U.S.$  1.0M  shall be paid to IMP from the first  U.S.$  1.0M
profit created by the joint venture.

Note:  IMP shall  provide  with  detailed  descriptions  for the contents of the
compensation made by Minghua to IMP as appendix.

For Party A (Minghua)                          For Party B (IMP)


/s/ (sd ---)                                   /s/ (sd ---)
(Signature)                                    (Signature)

<PAGE>

Attachment 2 Transfer of Technology, Proceess

      According  to  "Memorandum  of  Understanding  Relating  to Joint  Venture
between IMP Inc. and NingBo MingHua Micro--Electronic Co. Ltd of China",

"1. IMP will contribute to the joint venture with the following items: .........

      b) Process  technology.  IMP will  license to the joint  venture its mixed
signal processes ranging from 2.5 to 700 volts.  These process  technologies are
specially  developed for analog and mixed signal designs and ideal for low power
and high efficient power management ICs.

      c) Set up process for  manufacturing,  IMP engineers and technicians  will
bring up processes in the joint venture Fab facility for wafer manufacturing."

      IMP shall provide with:

1. Process technology

1.1 process integration

      IMP  transfer  its more than 35 process  integration  modules to the joint
venture,  ranging from 2.5 to 700volts.  Each process module including:  process
type,  application  rang,  design rule for layout,  device model  specification,
standard  cell  data  base,   PCM  structure,   integration   process  flow  and
manufacturing requirement.

1.2 Chip manufacturing technology including:

Photolithographic,  oxidation and diffusion, planarization, deposit, etching and
implantation,   etc.  Technological  flow,  procedure,   process  specification,
operation specification, inspection specification.

2. PCM (Process Control Monitor) test technology, including:

PCM test operation system software, application software for PCM testing, layout
design for test devices,  testing  methods and operation,  device  specification
analyzing technique.

3. IMP shall continuatively provide with new process technology developed.

      According to the following of the memorandum:

      "e) Business,  IMP will bring  business  volume to the joint venture wafer
foundry  business from its wafer foundry  business and from its standard product
business. IMP can bring to the joint venture the following business revenue:

             year 1----------U.S.$ 12M
             year 2----------U.S.$ 18M
             year 3----------U.S.$ 24M

      f)  Standard  products.  The joint  venture  can expand its scope to cover
development of new standard ICs for China market."

      IMP shall provide with detailed list of product transferred, including:

Product  type,  package  form,  process  type,  manufacturing  level,  product's
performance  and  application,  technical  specification,  similar type by other
company.

1.  IMP  shall  provide  with  integrated  technical  data  for the  design  and
manufacture of the products, including:

      Schematic and logic diagram

      Layout of the circuit

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      Working masks

      Testing methods for the products

      Package type and manufacturing

2. IMP shall provide with yield historical records, including:

      Wafer probing yield

      Yield of packaging and bonding

      Composite yield of product

      According to

      "7.  Management  and control of the  operation.  IMP currently has several
large wafer  fabrication  foundry  customers  such as  Microsemi,  International
rectifier,  National  semiconductr,  Dialog and Tektronix,  In order to maintain
continuity  relative to those businesses,  it is necessary that IMP will need to
manage the joint  venture  and has the  control of the  operation  for the first
three years of operations.  After the first three years, MingHua will assume the
lead role of management and control of the operation." (Memorandum)

IMP shall provide with

1.    IS09000 quality system management file, including:

      Procedure file, Quality system guarantee file

2.    In-line processing management software

3.    Data about quality control and reliability control such as statistic data,
      failure analyzing data.

4.    The type, specification, vendor of the raw materials, gases, chemical etc,
      for the processing line.

For Party A (Minghua)                          For Party B (IMP)


/s/ (sd ---)                                  /s/ (sd ---)
(Signature)                                    (Signature)

<PAGE>

Attachment 3 Assets and Equipment

      According  to  "Memorandum  of  Understanding  Relating  to Joint  Venture
between IMP Inc. and NingBo MingHua  Micro-Electronic  Co. Ltd of China", and to
the  intention   concerning  the  transferred   assets  and  equipment   through
consultation by both parties, IMP shall provide with:

A.  Fabrication  equipment:  IMP will transfer its present  production  and test
equipment of the line to the joint  venture,  IMP shall provide with whatever is
available:

1. Complete Fab equipment and instruments, and a list of them, including:

      Wafer processing equipment,

      In-line test / inspection equipment and instruments,

      PCM test system,

      Computer aided production management Hardware and Software,

      Raw material test / inspection equipment;

  indicating the manufacturer model#, date, and status of above items.

2.    Complete documentation,
      including

      Instruction Manual
      Maintenance Manual
      System Structure Drawing
      Electrical Drawings
      Technical Specification and Acceptance Specification
      Installation Manual and Environment Requirements
      Maintenance Records (If only available)

3.    IMP will provide with complete spare parts, and a list of them, indicating
      in the list:

      Item description
      Quantity
      Description of using (If only available)

B.    Supporting facilities with listing:
      Including:

      IMP's existing air compressor
      IMP's existing DI water system
      IMP's existing processing gas supply system
      Others
      Instruction Manuals of the above

      This can be done only if the Fab in San Jose is shut down.

C.  According to the  agreement  by both  parties,  IMP shall  provide the joint
venture  with all the  assets,  equipment  and assets in the San Jose  facility.
Minghua  will send  their  representatives  to  register  these  items  with IMP
personnel.  The Joint Venture shall decide if these items should be  transferred
to China.

D. IMP shall provide with the  documentation  of  installation  and  environment
requirements as soon as possible to meet with the need of constructions  and the
equipment installation.

E. IMP shall  transfer all hardware of the Fab  equipment and  instruments  in 2
shipments  to  Ningbo.  The  equipment  list is the list 3. The items of the two
shipments are listed in list 3.1, 3.2.

For Party A (Minghua)                          For Party B (IMP)


/s/ (sd ---)                                   /s/ (sd ---)
(Signature)                                    (Signature)
<PAGE>

                     IMP [Chinese translation not available]
                      The List of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #                  SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>                       <C>
           Ellipsometer        Rudolp                             Auto EI                                                    70387
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 AB-1           BPSG                             BD4/7351A                 DIMM-1
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 AB-2           Poly                             BDF4/7351A                DIMM-1
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 AB-3           Nitride                          BDF4/7351A                DIMM-1
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 AB-4           Nitride                          BDF4/7351A                DIMM-1
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-4A          FOR WS-4                         1600-3                    5060
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-4B          FOR WS-4                         1600-3                    5061
------------------------------------------------------------------------------------------------------------------------------------
           Wet Sink            Noah                WS-4           100:1 HF,H2S04,H2S04             8
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 BB-1           Initial OX,Isolation,Field       BDF4/7351A                DIMM-2
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 BB-2           Initial OX,Isolation,Field       BDF4/7351A                DIMM-2
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 BB-3           Initial Pregate,base,field       BDF4/7351A                DIMM-2
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 BB-4           Initial Pregate,base,field       BDF4/7351A                DIMM-2
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-5A          FOR WS-5                         1600-3                    5076
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-5B          FOR WS-5                         1600-3                    5075
------------------------------------------------------------------------------------------------------------------------------------
           Wafer Transfer      Fortrend            FWT-6          Wafer Transfe                    F-5000
------------------------------------------------------------------------------------------------------------------------------------
           Wafer Transfer      Fortrend            FWT 3          Wafer Transfe                    F-5000                    1092382
------------------------------------------------------------------------------------------------------------------------------------
           Wet Sink            Noah                WS-5           RCA-SC2,RCA-SC1,20               8
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 CB-1           Initial OX,Isolation,Field       BDF4/7351A                DlMM-3
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 CB-2           Pregate,Field                    BDF4/7351A                DIMM-3
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 CB-3           S/D Reox                         BDF4/7351A                DIMM-3
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 CB-4           LTO Denisify                     BDF4/7351A                DIMM-3
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-2A          For WS-6                         1600-3                    5051
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-2B          For WS-6                         1600-3                    5110
------------------------------------------------------------------------------------------------------------------------------------
           Wafer Transfer      Fortrend            FWT-4          Wafer Transfe                    F-5000                    693368
------------------------------------------------------------------------------------------------------------------------------------
           Wet Sink            Noah                WS-6           20:1 HF,H2SO4,H2S04              8
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 DB-1           Poly Dope, Pocl3, Dens           BDF4/7351A                DIMM-4
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 DB-2           Poly Dope, Pocl3, Dens           BDF4/7351A                DIMM-4
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 DB-3           Phos Drive,Arsnic Drive          BDF4/7351A                DIMM-4
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 DB-4           Annel, Alloy                     BDF4/7351A                DIMM-4
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-7A          For WS-7                         1600-4                    5073
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-7B          For WS-7                         1600-4                    5074
------------------------------------------------------------------------------------------------------------------------------------
           Wafer Transfer      MGI Electronics     Phoenix-V4     Transfer Station                 PXM-5872V4-5-V            587068
------------------------------------------------------------------------------------------------------------------------------------
           Wet Sink            Noah                WS-7           20:1 HF,H2S04,H2S04              8
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 EB-1           Cap OX, Interpoly OX             BDF4/7351A                DIMM-5
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 EB-2           Poly Dep                         BDF4/7351A                DIMM-5
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 EB-3           LTO Dep, LTO Pass                BDF4/7351A                DIMM-5
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Fab Equipment List.xls                1 OF 7            IMP Confidential 8/10/01


<PAGE>

                     IMP [Chinese translation not available]
                      The List of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #            SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>                <C>
           Furance             BTU                 EB-4           LTO Dep, LTO Pass                BDF4/7351A         DIMM-5
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Semitool            RD-3B                                           260C               3621C
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Semitool            RD-3A                                           260C               3620C
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-8A                                           1600-3             5068
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-8B                                           1600-3             5072
------------------------------------------------------------------------------------------------------------------------------------
           Wafer Transfer      MGI Electronics     Phoemx-V4      Transfer Station                 PXM-6882V2 125-U   587052
------------------------------------------------------------------------------------------------------------------------------------
           Wet Sink            Noah                WS-8           1:1 HF,H2S04,H2SO4               8
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 FB-l           P-WELL                           7351C              DIMM-6
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 FB-2           P-WELL                           7351C              DIMM-6
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 FB-3           N-WELL                           7351C              DIMM-6
------------------------------------------------------------------------------------------------------------------------------------
           Furance             BTU                 FB-4           SOG Bake/Cure                    7351C              DIMM-6
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-11A                                          1600-3             5069
------------------------------------------------------------------------------------------------------------------------------------
           Vertical Furance    Thermco/SVG         VF-1                                            6105DOX            193
------------------------------------------------------------------------------------------------------------------------------------
           Wafer Transfer      Fortrend            FWT-5                                           F-5000             693457
------------------------------------------------------------------------------------------------------------------------------------
           Wet Clean/Etch      FSI Mercury         FS-1           Gate,Field,Base,Pregate          903736-001         0106-0129-0794
------------------------------------------------------------------------------------------------------------------------------------
           Wet Sink            Noah                WS-10          RCA-SC2,RCA-SC1,20               4
------------------------------------------------------------------------------------------------------------------------------------
           Film Analyzer       Gaetner Ellipsomter Film Analyer                                    L1116-B            1414-AK
------------------------------------------------------------------------------------------------------------------------------------
           Film Measurement    Nanometrics         NS-3                                            3B                 8466
------------------------------------------------------------------------------------------------------------------------------------
           Inspection Scope    Irvine Opti Corp    UL-3                                            3D                 8464
------------------------------------------------------------------------------------------------------------------------------------
           V/l Measurement     Signatone
------------------------------------------------------------------------------------------------------------------------------------
           Crystal Damage Meas.Therma Wave         TW-1                                            TP-2705            2005
------------------------------------------------------------------------------------------------------------------------------------
           Film Measurement    Nanometrics         NS-1                                            180                0181-1009
------------------------------------------------------------------------------------------------------------------------------------
           Inspection Scope    Olympus             Scope
------------------------------------------------------------------------------------------------------------------------------------
           Inspection Scope    Irvine Opti Corp    UL-9                                            3B                 846
------------------------------------------------------------------------------------------------------------------------------------
           Measurement         Tencor                             Alpha Step 200                   200
------------------------------------------------------------------------------------------------------------------------------------
           Oxide Etecher       Lam Research        LO-1           Sog & BPSG Plannarization        590                1788
------------------------------------------------------------------------------------------------------------------------------------
           Oxide Etecher       Mtrix               MO-1           Contact,Iso,Oxide Etch,          303                S164101-05
------------------------------------------------------------------------------------------------------------------------------------
           Oxide Etecher       Tegal               TO-1           Contact, Via,Pad Mask            903E               10406
------------------------------------------------------------------------------------------------------------------------------------
           Oxide Etecher       Tegal               TO-2           Contact, Via,Pad Mask            903E               10841
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
           Oxide Etecher       Lam Research        LO-2           Sog & BPSG Plannarization        595                9004
------------------------------------------------------------------------------------------------------------------------------------
           Poly Etcher         Lam Research        LP 1           Poly Etcher                      490                1791
------------------------------------------------------------------------------------------------------------------------------------
           Poly Etcher         Lam Research        LP-2           Poly Etcher                      490                60621
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-12A         ForWS-12                         1600-3             5066
------------------------------------------------------------------------------------------------------------------------------------
           Rinser/Dryer        Verteq              RD-12B         ForWS-12                         1600-3             5069
------------------------------------------------------------------------------------------------------------------------------------
           UV Inspection       Ultrastation        UL-4           BOE 6:1 w/es 1(5017 pro)         3L
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Fab Equipment List.xls                2 OF 7            IMP Confidential 8/10/01
<PAGE>

                     IMP [Chinese translation not available]
                      The List of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #            SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>                <C>
[     ]    Wet Sink            Noah                WS-12                                           BDF4/7351 A
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Branson/IPC         BA-l                                            PM-1813            FM-827-l
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Branson/IPC         BA-2                                            PM-1813            FM8280-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Branson/IPC         BA-4                                            PM11220            FM762RO-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Branson/IPC         BE-2                                            L2101              M909800
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Gasonics            GA-1                                            A95-037-01         04972-A
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Gasonics            GA-2                                            A95-037-01         02968-A
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Bake Oven           Blue M              OV-3                                            DCC-256-C          DCC-509
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Deep UV             Fusion              FS-4                                            M150PC
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-7                                            3B
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-11                                           3B                 8492
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Particle Monitor    Surfscan 4500       TS-1                                            86630              0490-406
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-16A         For WS-13                        1600-33            5736
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-16B         For WS-13                        1600-33            5789
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-2A          For WS-2                         1600-3             5303
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-2B          For WS-2                         1600-3             5041
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Solvent Sink        Noah                WS-13                                           8
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Transfer      Fortrend            FWT-1                                           F-5225             693454
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-2           H2SO4,H2SO4,H2SO4                6
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Blue M Bake Oven    DCC-256C            OV-4                                            DCC-510
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Blue M Bake Oven    DCC 256C            OV-5                                            DCC-506
------------------------------------------------------------------------------------------------------------------------------------
[     ]    CD Measurement      Nanometrics         NL-2                                            3B                 8482
------------------------------------------------------------------------------------------------------------------------------------
[     ]    CV-Plotter          MDC/Signature       CV-1           GP                               S-104 105DDI       528-4/87
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Deep UV             Fusion              FS-1                                            M150PC             156
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Deep UV             Fusion              FS-2                                            M150PC             19
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Deep UV             Fusion              FS-3                                            M150PC             PA5G718BR
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Film Measurement    Nanometrics         NS-2                                            3B                 8485
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-8                                            3B
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
[     ]    Nitride Etch        Lam Research        LN-2                                            490                490
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Poly Etcher         Lam Research        LP-3                                            4420B              3414
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Prober              Signatone                                                           153                1007
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-18A         For WS-14                        1600-3             5429
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-18B         For WS-14                        1600-3             5430
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-14          Al Pad,Poly Etch for 50          8
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Branson/IPC         BA-3                                            23100-11220        PM0410-1
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


Fab Equipment List.xls                3 OF 7            IMP Confidential 8/10/01
<PAGE>

                     IMP [Chinese translation not available]
                      The List of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #            SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>                <C>
[     ]    Asher               Branson/IPC         BE-l                                            PM-112200          M60B3RO-4
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Hi-Current Implant  Eaton               10-160-1       Nova                             10-160
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Hi-Pox              Gastronics
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Implanter           Varian              350D-1                                          350D               50788
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Implanter           Varian              350D-2                                          350D               51083
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Implanter           Varian              350D-3                                          350D
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-6
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Metal Etcher        Drytech             DM-1                                            Quad
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Metal Etcher        Lam Research        DM-2                                            Asiq
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Oxide Etcher        Lam Research        LO-3                                            Asiq
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-14A                                          1600-34            6232
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-14B                                          1600-34            6232
------------------------------------------------------------------------------------------------------------------------------------
[     ]    W CVD/Etch          Applied Materials   Prec. 5000
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Transfer      Fortend             FWT-2                                           F-5225             693453
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-3           Metal Etch,H2SO4,6:l             8
------------------------------------------------------------------------------------------------------------------------------------
           Bake Oven           Blue M              OV-1           GP                               DCC-256C           DCC-508
------------------------------------------------------------------------------------------------------------------------------------
           Bake Oven           Blue M              OV-2           GP                               DCC-256C           DCC-507
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
           Spinner             Solitic             SS-6           OFPR 30, Nova 2015               820-ACB            8890611
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             Solitic             SS-7
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-8           ARC                              8636               36-19322
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-9           Nova 2071, 2071 Dyed2            8626/36            940506-TY3736
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-10          Nova 2071, ARC                   8626/36            940506-TY3736
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-11          Nova 2021, Acetone, No           8626/36            012795-TY40703
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-12          Nova 2071, Acetone, No           8626/36            012795-TY40703
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-15          Nova 2071, Nova 2015             8626/8636          950928-TY4207
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-16          Nova 2071, Nova 2015             8626/8636          950928-TY4207
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-17                                           8600
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-18                                           8600
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-19                                           8600
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-20                                           8600
------------------------------------------------------------------------------------------------------------------------------------
           Spinner             SVG                 SS-21                                           8600
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


Fab Equipment List.xls                4 OF 7            IMP Confidential 8/10/01
<PAGE>

                     IMP [Chinese translation not available]
                      The List of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #           SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>               <C>
[     ]    Vapor Primer        IMTEC               IMT-1          GP                               STAR-2000         V01794
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Vapor Primer        IMTEC               IMT-2          GP                               STAR-2000         V01015
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Vapor Primer        IMTEC               IMT-3          GP                               YES-5             87600
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspecton Scope     Olympus             Scope          GP                               BHMJL             201325
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspecton Scope     Nikon               Scope
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspecton Scope     PPL/Olympus         Scope          GP                               U-PMYVC           4J00418
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspecton Scope     Irvine Opti Corp    UL-12          GP
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Laser Scribe        Lumonics            LS-1                                            Wafer Mark II     145
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Laser Scribe        Lumonics            LS-2                                            Wafer Mark II     145
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Megasonics          Verteq              MS-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Prober              Electroglas         EG-109         GP                               2001X            WP88073005/1293
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Prober              Signatone                          GP                               S-1007X-5         291-3/90
------------------------------------------------------------------------------------------------------------------------------------
[     ]    QC Lamp             Scientific Product                 GP                               L6094
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinse/Dryer         Verteq              RD-15A         For MSI                          1600-4            5368
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinse/Dryer         Verteq              RD-15B         For MSI                          1600-4            5368
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spin on Glass       Semix               Sog-2          GP                               TR61324(D)        695142
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spin on Glass       Semix               Sog-3          GP                               TR61324(D)        63A367
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Flat Measure  Tropel                                                              9000              203861
------------------------------------------------------------------------------------------------------------------------------------
[     ]    5X Stepper          ASM Litho           AS-1                                            PAS2500/40        53219
------------------------------------------------------------------------------------------------------------------------------------
[     ]    5X Stepper          ASM Litho           AS-2                                            PAS2500/50        9481
------------------------------------------------------------------------------------------------------------------------------------
[     ]    5X Stepper          ASM Litho           AS-3
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Measurement         Imspex                             TPC 8525                         8525
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Std. Field Stepper  U Tech Stepper      US-1           GP                               1000              158
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Std. Field Stepper  U Tech Stepper      US-4           GP                               1000              264
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Std. Field Stepper  U Tech Stepper      US-5           GP                               1000              276
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Std. Field Stepper  U Tech Stepper      US-6           GP                               1000              417
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Std. Field Stepper  U Tech Stepper      US-9           GP                               1000              416
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspetion Scope     Nikon               Scope          GP                                                 251592
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wide field Stepper  U Tech Stepper      US-11          GP                               1000              472
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wide field Stepper  U Tech Stepper      US-12          GP                               1000              475
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wide field Stepper  U Tech Stepper      US-15          GP                               1500              696
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wide Field Stepper  U Tech Stepper      US-17          GP                               1100              487
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


Fab Equipment List.xls                5 OF 7            IMP Confidential 8/10/01
<PAGE>

                     IMP [Chinese translation not available]
                      The List of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #            SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>                <C>
[     ]    Wide Field Stepper  U Tech Stepper      US-18          GP                               1100               474
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wide Field Stepper  U Tech Stepper      US-19          All First Layers                 1100               952
------------------------------------------------------------------------------------------------------------------------------------
[     ]    CD Measurement      Nano Metrics        NL-1           GP                               7000-0237          589-5243
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Immersion Develop   Ultra Tec Corp      ID-2           015 resist only, exclude         504                OIL
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Immersion Develop   UTE                 ID-3           NON 2015 resist only, exclude    4051               9401-4407
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Olympus             Scope          GP                                                  251592
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-1           GP                               3D                 8494
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-2           GP                               3D                 8493
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-12          GP                               3D
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-10A                                          1600-3             5011
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-10B                                          1600-3             5047
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-17A                                          1600-3             5190
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-17B                                          1600-3             5191
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Track Developer                         SD-4,5                                          8632               950905TY-42070
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Track Developer     SVG                 SD-6,7,8
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-5
------------------------------------------------------------------------------------------------------------------------------------
[     ]    PECVD Reactor       Novellus            NV-1           Plasma Pass/ Inter-metal         Concept One        89-17-66
------------------------------------------------------------------------------------------------------------------------------------
[     ]    PECVD Reactor       Novellus            NV-2                                            Concept One        89-24-7B
------------------------------------------------------------------------------------------------------------------------------------
[     ]    PECVD Reactor       Novellus            NV-3                                            Concept One        93-39-702
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rapd Thermal Annel  AST                 AST-1                                           AS5-2000           91-11-0050
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Relective MES       MTW Inc.            Rdflectometer                                   RMS-11             104078
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Resistance Probe    Veeco Instrment     4 point Probe                                   FPP5000            762D
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-9A          For WS-9                         1600-3             5137
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-9B          For WS-9                         1600-3             5138
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Sputter             Varian              3180-1                                          3180               84218-165
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Sputter             Varian              3180-2                                          3180               88722-055
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Sputter             MRC                 MRC-1                                           ECLIPS MARK II     47758
------------------------------------------------------------------------------------------------------------------------------------
[     ]                                                                                            04 1406-47758
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-9           50:1 BOE,H2SO4,H2O2              8
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Hitachi
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


Fab Equipment List.xls                6 OF 7            IMP Confidential 8/10/01
<PAGE>

                     IMP [Chinese translation not available]
                      The List of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #            SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>                <C>
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]                                                                                                               SUMMARY
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]                                                                                                               FAB
------------------------------------------------------------------------------------------------------------------------------------
[     ]                                                                                                               Reliability
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


Fab Equipment List.xls                7 OF 7            IMP Confidential 8/10/01
<PAGE>

                       [Chinese translation not available]
                    The First Lot of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #            SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>                <C>
[     ]    Furance             BTU                 AB-1           BPSG                             BD4/7351A          DIMM-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 AB-2           Poly                             BDF4/7351A         DIMM-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 AB-3           Nitride                          BDF4/7351A         DIMM-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 AB-4           Nitride                          BDF4/7351A         DIMM-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-4A          FOR WS-4                         1600-3             5060
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 BB-1           Initial OX,Isolation,Field       BDF4/7351A         DIMM-2
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 BB-2           Initial OX,Isolation,Field       BDF4/7351A         DIMM-2
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 BB-3           Initial Pregate,base,field       BDF4/7351A         DIMM-2
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 BB-4           Initial Pregate,base,field       BDF4/7351A         DIMM-2
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-5B          FOR WS-5                         1600-3             5075
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Transfer      Fortrend            FWT-3          Wafer Transfe                    F-5000             1092382
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-5           RCA-SC2,RCA-SC1,20               8
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 CB-1           Initial OX,Isolation,Field       BDF4/7351A         DIMM-3
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 CB-2           Pregate,Field                    BDF4/7351A         DIMM-3
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 CB-3           S/D Reox                         BDF4/7351A         DIMM-3
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 CB-4           LTO Denisify                     BDF4/7351A         DIMM-3
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-2A          For WS-6                         1600-3             5051
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Transfer      Fortrend            FWT-4          Wafer Transfe                    F-5000             693368
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-6           20:1 HF,H2S04,H2S04              8
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 DB-1           Poly Dope, Pocl3, Dens           BDF4/7351A         DIMM-4
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 DB-2           Poly Dope, Pocl3, Dens           BDF4/7351A         DIMM-4
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 DB-3           Phos Drive,Arsnic Drive          BDF4/7351A         DIMM-4
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 DB-4           Annel, Alloy                     BDF4/7351A         DIMM-4
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-7A          For WS-7                         1600-4             5073
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Transfer      MGI Electronics     Phoenix-V4     Transfer Station                 PXM-5872V4-5-V     587068
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-7           20:1 HF,H2S04,H2S04              8
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 EB-1           Cap OX, Interpoly OX             BDF4/7351A         DIMM-5
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 EB-2           Poly Dep                         BDF4/7351A         DIMM-5
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 EB-3           LTO Dep, LTO Pass                BDF4/7351A         DIMM-5
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 EB-4           LTO Dep, LTO Pass                BDF4/7351A         DIMM-5
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Semitool            RD-3B                                           260C               3621C
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Transfer      MGI Electronics     Phoenix-V4     Transfer Station                 PXM-6882V2 125-U   587052
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-8           1:1 HF,H2SO4,H2SO4               8
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 FB-1           P-WELL                           7351C              DIMM-6
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 FB-2           P-WELL                           7351C              D1MM-6
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Furance             BTU                 FB-3           N-WELL                           7351C              DIMM-6
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     1 OF 4
<PAGE>

                       [Chinese translation not available]
                    The First Lot of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #            SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>                <C>
[     ]    Furance             BTU                 FB-4            SOG Bake/Cure                   7351C              DIMM-6
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-11A                                          1600-3             5069
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Vertical Furance    Thermco/SVG         VF-1                                            6105DOX            193
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Transfer      Fortrend            WT-5                                            F-5000             693457
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Clean/Etch      FSI Mercury          S-l           Gate,Field,Base,Pregate          903736-001         0106-0129-0794
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-10          RCA-SC2,RCA-SC1,20               4
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Film Analyzer       Gaetner Ellipsomter Film Analyer                                    L116-B             1414-AK
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Film Measurement    Nanometrics         NS-3                                            3B                 8466
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Film Measurement    Nanometrics         NS-1                                            180                0181-1009
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Olympus             scope
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-9                                            3B                 846
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Oxide Etecher       Lam Research        LO-1           Sog & BPSG Plannarization        590                1788
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Oxide Etecher       Tegal               TO-1           Contact, Via,Pad Mask            903E               10406
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Oxide Etecher       Lam Research        LO-2           Sog & BPSG Plannarization        595                9004
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Poly Etcher         Lam Research        LP-1           Poly Etcher                      490                1791
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-12A         For WS-12                        1600-3             5066
------------------------------------------------------------------------------------------------------------------------------------
[     ]    UV Inspection       Ultrastation        UL-4           BOE 6:1 w/es1(5017 pro)          3L
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Branson/IPC         BA-1                                            PM-1813            FM-827-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Branson/IPC         BA-2                                            PM-1813            FM8280-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Gasonics            GA-1                                            A95-037-01         04972-A
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Gasonics            GA-2                                            A95-037-01         02968-A
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Deep UV             Fusion              FS-4                                            M150PC
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-7                                            3B
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-16A         For WS-13                        1600-33            5736
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Solvent Sink        Noah                WS-13                                           8
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-2           H2SO4,H2SO4,H2S04                6
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Blue M Bake Oven    DCC-256C            OV-4                                            DCC-510
------------------------------------------------------------------------------------------------------------------------------------
[     ]    CD Measurement      Nanometrics         NL-2                                            3B                 8482
------------------------------------------------------------------------------------------------------------------------------------
[     ]    CV-Plotter          MDC/Signature       CV-1           GP                               S-l04 105DDI       528-4/87
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Deep UV             Fusion              FS-1                                            M150PC             156
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Film Measurement    Nanometrics         NS-2                                            3B                 8485
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-8                                            3B
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Nitride Etch        Lam Research        LN-2                                            490                490
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Poly Etcher         Lam Research        LP-3                                            4420B              3414
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     2 OF 4
<PAGE>

                       [Chinese translation not available]
                    The First Lot of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #           SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>               <C>
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Prober              Signatone                                                           153               1007
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              HD-18A         For WS-14                        1600-3            5429
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-14          Al,Pad,Poly Etch for 50          8
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Hi-Current Implant   Eaton              10-160-1       Nova                             10-160
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Implanter           Varian              350D-1                                          35OD              50788
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Implanter           Varian              350D-2                                          35OD              51083
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Metal Etcher        Lam Research        DM-2                                            Asiq
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Oxide Etecher       Lam Research        LO-3                                            Asiq
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-14A                                          1600-34           6232
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Transfer      Fortend             FWT-2                                           F-5225            693453
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-3           Metal Etch,H2SO4,6:l             8
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             Solitic             SS-6           OFPR 30,Nova 2015                820-ACB           8890611
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             Solitic             SS-7
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-8           ARC                              8636              36-19322
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-9           Nova 2071,2071 Dyed2             8626/36           940506-TY3736
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-10          Nova 2071, ARC                   8626/36           940506-TY3736
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-11          Nova 2021,Acetone,No             8626/36           012795-TY40703
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-17                                           8600
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-18                                           8600
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Vapor Primer        IMTEC               IMT-1          GP                               STAR-2000         V01794
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Vapor Primer        IMTEC               IMT-3          GP                               YES-5             87600
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspecton Scope     Olympus             Scope          GP                               BHMJL             201325
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Laser Scribe        Lumonics            LS-1                                            Wafer Mark II     145
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Megasonics          Verteq              MS-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Prober              Electroglas         EG-109         GP                               2001X             WP88073005/1293
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinse/Dryer         Verteq              RD-15A         For MS1                          1600-4            5368
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spin on Glass       Semix               Sog-2          GP                               TR61324(D)        695142
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Flat Measure  Tropel                                                              9000              203861
------------------------------------------------------------------------------------------------------------------------------------
[     ]    5X Stepper          ASM Litho           AS-1                                            PAS2500/40        53219
------------------------------------------------------------------------------------------------------------------------------------
[     ]    5X Stepper          ASM Litho           AS-2                                            PAS2500/50        9481
------------------------------------------------------------------------------------------------------------------------------------
[     ]    5X Stepper          ASM Litho           AS-3
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
                                     3 OF 4
<PAGE>


                       [Chinese translation not available]
                    The First Lot of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #           SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>               <C>
[     ]    Measurement         Imspex                             TPC 8525                         8525
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Std.Field Stepper   U Tech Stepper      US-4           GP                               1000              264
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Std.Field Stepper   U Tech Stepper      US-5           GP                               1000              276
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspetion Scope     Nikon               Scope          GP                                                 251592
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wide field Stepper  U Tech Stepper      US-11          GP                               1000              472
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wide field Stepper  U Tech Stepper      US-12          GP                               1000              475
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wide Field Stepper  U Tech Stepper      US-19          All First Layers                 1100              952
------------------------------------------------------------------------------------------------------------------------------------
[     ]    CD Measurement      Nano Metrics        NL-1           GP                               7000-0237         0589-5243
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Immersion Develop   Ultra Tec Corp      ID-2           2015 resist only, exclude        504               OIL
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Immersion Develop   UTE                 ID-3           NON 2015 resist only, exclude    4051              9401-4407
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Olympus             Scope          GP                                                 251592
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-10A                                          1600-3            5011
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-10B                                          1600-3            5047
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Track Developer                         SD-4,5                                          8632              950905TY-42070
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Track Developer     SVG                 SD-6,7,8
------------------------------------------------------------------------------------------------------------------------------------
[     ]    PECVD Reactor       Novellus            NV-1           Plasma Pass/ Inter-metal         Concept One       89-17-66
------------------------------------------------------------------------------------------------------------------------------------
[     ]    PECVD Reactor       Novellus            NV-2                                            Concept One       89-24-7B
------------------------------------------------------------------------------------------------------------------------------------
[     ]    PECVD Reactor       Novellus            NV-3                                            Concept One       93-39-702
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rapd Thermal Annel  AST                 AST-1                                           AS5-2000          91-11-0050
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Relective MES       MTW Inc.            Rdflectometer                                   RMS-11            104078
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Resistance Probe    Veeco Instrment     4 point Probe                                   FPP5000           762D
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-9A          For WS-9                         1600-3            5137
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Sputter             Varian              3180-1                                          3180              84218-165
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Sputter             Varian              3180-2                                          3180              88722-055
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Sputter             MRC                 MRC 1                                           ECLIPS MARK II    47758
------------------------------------------------------------------------------------------------------------------------------------
[     ]                                                                                            04 1406-47758
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-9           50:1 BOE,H2SO4,H202              8
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     4 OF 4
<PAGE>

                       [Chinese translation not available]
                   The Second Lot of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #           SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>               <C>
[     ]    Ellipsometer        Rudolp                             Auto EI                                            70387
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-4B          FOR WS-4                         1600-3            5061
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-5A          FOR WS-5                         1600-3            5076
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Transfer      Fortrend            FWT-6          Wafer Transfe                    F-5000
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-2B          for WS-6                         1600-3            5110
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-7B          for WS-7                         1600-4            5074
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Semitool            RD-3A                                           260C              3620C
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-8A                                           1600-3            5068
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-8B                                           1600-3            5072
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-3                                            3D                8464
------------------------------------------------------------------------------------------------------------------------------------
[     ]    V/l Measurement     Signatone
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Crystal Damage Meas.Therma Wave         TW-1                                            TP-2705           2005
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-9                                            3B                846
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Oxide Etecher       Lam Research        LO-1           Sog & BPSG Plannarization        590               1788
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Oxide Etecher       Tegal               TO-2           Contact, Via,Pad Mask            903E              10841
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Poly Etcher         Lam Research        LP-2           Poly Etcher                      490               60621
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-12B         For WS-12                        1600-3            5069
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wet Sink            Noah                WS-12                                           BDF4/7351A
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Branson/IPC         BA-4                                            PM11220           FM762RO-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Branson/IPC         BE-2                                            L2101             M909800
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Bake Oven           Blue M              OV-3                                            DCC-256-C         DCC-509
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-11                                           3B                8492
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Particle Monitor    Surfscan 4500       TS-1                                            86630             0490-406
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-16B         For WS-13                        1600-33           5789
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-2A          For WS-2                         1600-3            5303
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-2B          For WS-2                         1600-3            5041
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Transfer      Fortrend            FWT-1                                           f-5225            693454
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Blue M Bake Oven    DCC-256C            0V-5                                            DCC 506
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Deep UV             Fusion              FS-2                                            M150PC            19
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Deep UV             Fusion              FS-3                                            M150PC            PA5G718BR
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Film Measurement    Nanometrics         NS-2                                            3B                8485
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-18B         For WS-14                        1600-3            5430
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Branson/IPC         BA-3                                            23100-11220       PM0410-1
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Asher               Branson/IPC         BE-1                                            PM-112200         M60B3RO-4
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Hi-Pox              Gastronics
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Implanter           Varian              350D-3                                          35OD
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-6
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     1 OF 3
<PAGE>

                       [Chinese translation not available]
                   The Second Lot of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #           SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>               <C>
[     ]    Metal Etcher        Drytech             DM-l                                            Quad
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-14B                                          1600-34            6232
------------------------------------------------------------------------------------------------------------------------------------
[     ]    W CVD/Etch          Applied Materials   Prec.5000
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wafer Transfer      Fortend             FWT-2                                           F-5225             693453
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Bake Oven           Blue M              0V-1           GP                               DCC 256C           DCC 508
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Bake Oven           Blue M              OV-2           GP                               DCC-256C           DCC 507
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-12          Nova 2071, Acetone,No            8626/36            012795-TY40703
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-15          Nova 2071, Nova 2015             8626/8636          950928-TY4207
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-16          Nova 2071, Nova 2015             8626/8636          950928-TY4207
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-19                                           8600
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-20                                           8800
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spinner             SVG                 SS-21                                           8600
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Vapor Primer        IMTEC               IMT-2           GP                              STAR-2000          V01015
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspecton Scope     Nikon               Scope
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspecton Scope     PPL/Olympus         Scope          GP                               U-PMYVC            4J00418
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspecton Scope     Irvine Opti Corp    UL-12          GP
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Laser Scribe        Lumonics            LS-2                                            Wafer Mark II      145
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Prober              Signatone                          GP                               S-1007X-5          291-3/90
------------------------------------------------------------------------------------------------------------------------------------
[     ]    QC Lamp             Scientific Product                 GP                               L6094
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinse/Dryer         Verteq              RD-15A         For MS1                          1600-4             5368
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Spin on Glass       Semix               Sog-2          GP                               TR61324(D)         695142
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Std.Field Stepper   U Tech Stepper      US-1           GP                               1000               158
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Std.Field Stepper   U Tech Stepper      US-6           GP                               1000               417
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Std.Field Stepper   U Tech Stepper      US-9           GP                               1000               416
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wide field Stepper  U Tech Stepper      US-15          GP                               1500               696
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wide Field Stepper  U Tech Stepper      JS-17          GP                               1100               487
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Wide Field Stepper  U Tech Stepper      LJS-18         GP                               1100               474
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-1           GP                               3D                 8494
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-2           GP                               3D                 8493
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Inspection Scope    Irvine Opti Corp    UL-12          GP                               3D
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-17A                                          1600-3             5190
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-17B                                          1600-3             5191
------------------------------------------------------------------------------------------------------------------------------------
[     ]    PECVD Reactor       Novellus            NV-1           Plasma Pass/ Inter-metal         Concept One        89-17-66
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Rinser/Dryer        Verteq              RD-9B          For WS-9                         1600-3             5138
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     2 OF 3
<PAGE>

                       [Chinese translation not available]
                   The Second Lot of IMP Equipment Transfered

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
AREA       TYPE                MANUFACTURE         EQUIP.ID       COMMENTS                         MODEL #           SERIAL #
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>                 <C>            <C>                              <C>               <C>
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]    Hitachi
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
[     ]
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     3 OF 3
<PAGE>

Attachment 4 Products Market and Development

      According to the  Memorandum  of  Understanding  Relating to Joint Venture
between IMP Inc and NingBo Minghua  Microelectronic  Co Ltd of China, the detail
is added as following:

1.    With the regulation of item 1 of the Memo:

      "b) Process  technology  IMP will  license to the joint  venture its mixed
      signal  processes  ranging from 2.5-700V.  These process  technologies are
      specially  developed for analog and mixed signal designs and ideal for low
      power and high efficient power management Ics.

      f)  Standard  products  The joint  venture  can  expand its scope to cover
development of new standard ICs for china market."

The joint venture can:

      1) Sell and spread IMP's present standard products keep the balanced price
      system with IMP.

      2) Use the process  technology  to develop new products  keep the balanced
      product configuration with IMP.

      3) Develop new agents (abroad and in China),  keep the balanced market net
      with IMP.

      4) Above items 1,2,3 are subject to seperated agreement.

With the following of the Memo:

      "e) Business:  IMP will bring  business  volume to the joint venture wafer
foundry  business from its wafer foundry  business and from its standard product
business.  IMP can bring to the joint  venture the following  business  revenue:
year 1-u.s.$1.2M: year 2-u.s.$1.8M year 3-u.s.$24M."

      IMP shall supply with:

      1)  The  detailed  list  of  all  products  to  be  transferred,  and  the
description of the product, including: product type, performance and application
range,  specifications,  process  type and  level,  package  and the  compatible
products.

      2) The fabrication  cost,  market price,  marketing form, list of customer
and agent, market share etc, for the main products.

      The revenue of the last three years, the contracts on operation, the order
volume, the main area and application of sale.

      3) The  proportion  of foundry  entrusted  processings  is 65%,  and IMP's
standard products is 35%, respectively.

      4) The  expected  gross and net profit is 40% and 18%  respectively,  when
fulfilling the revenue which IMP bring to the joint venture.

      In case of less than 70% of expected profit, IMP should make compensation.

      With the following of the Memo:

      "d) Training of the personnel.  IMP will train  engineers and  technicians
from Minghua Micro  Electronics  Co. In IMP's San Jose wafer  fabrication  plant
before  the  equipment  is  relocated  to  China,  and  also  in  joint  venture
fabrication plant in NingBo, China, after the equipment is set up."

      IMP  should  help the market  personnel  of Minghua to know and handle the
foundry business and standard products business,  and give necessary support, so
as to develop the market for the joint venture.
<PAGE>

With the regulation of item 2 of the Memo:

      "c) Minghua will move their current 4" wafer  fabrication  operations  and
processes from BengBu,  Anhui to NingBo for the joint venture.  The capacity for
this 4" facility is approximately 2000 wafers per month."

      The joint  venture can produce  present  products  using the 4" processing
line and develop new products using that line, the joint venture should keep the
line in operation.

With the regulation of item 7 of the Memo:

      "Management and control of the operation.  IMP currently has several large
wafer fabrication  foundry customers such as  Microsemi.Intemational  rectifier,
National  semiconductor,  Dialog and Tektronix.  In order to maintain continuity
relative to those  businesses  it is necessary  that IMP will need to manage the
joint  venture and has the control of the operation for the first three years of
operations.  After the first three  years,  Minghua will assume the lead role of
management and control of the operation."

      Therefore,

      1) The  joint  venture  can use the  processing  line to  develop  the new
products except the business supplied by IMP in the first three years.

      2)  After  that  period,  IMP  should  supply  the  order  and keep a good
relationship with Minghua.

For Party A (Minghua)                                  For Party B (IMP)


/s/ (sd ---)                                            /s/ (sd ---)
(Signature)                                            (Signature)
<PAGE>

Attachment 5 Accounting Procedure

Article 1 Accounting Regulation

      1.1 In accordance  with the  Accounting  System of the Joint Venture Using
Chinese  and  Foreign  Investment  of  the  People's  Republic  of  China,  this
Accounting Procedure is drawn up. As the attachment of the contact for the joint
venture of IMP and Minghua,  the duration of the  regulations of this Accounting
Procedure shall agree with the contact.

      1.2 The  accounting  system and procedure is a part of the business of the
joint venture,  and shall be responsible to produce accurate and truthful report
required.

      The  accounting   system  and  procedure   applicable  to  China  and  its
subordinates shall be adopted by the joint venture.

      1.3 The  accounting  reports and records of the joint venture shall follow
the General  Regulation of Accounting  and the  Implement  Rules for  Enterprise
Accounting,  published by the  Ministry of Finance of the  People's  Republic of
China.

      1.4 All Reports shall be recorded in Chinese and English.

      1.5 Renminbi (RMB) shall be basic monetary adopted by the joint venture.

      1.6 The  board of  directors  shall  approve  the  operating  capital  and
expenses in the budget.  The general  manager has the authority to use the loans
from the  banks in  China.  The  general  manager  has the  authority  to demand
shareholders to pay the registered capital as agreed.

      1.7 Any short term operation and cash flow  transactions  exceeding budget
shall require the approval of the board of directors,  and handled with relevant
tactics and accounting procedure.

Article 2 Calculation of the Paid Up Capital

      The paid up capital of equipment and premise shall be calculated  when the
equipment is in the site of the joint venture or the construction is finished.

      For the investment of industrial property, Party B shall list the contents
(including  main  processing   categories  and  the  typical  products  of  each
category).  The paid up capital of  industrial  property  shall be calculated as
following : 15%  of  the  total  investment  of  industrial  property  shall  be
calculated  when the  joint  venture  receives  the  transfer  of IMP's  related
document of processing and products; 35% shall be calculated when the production
line of the joint  venture  is set up;  40% shall be  calculated  when the joint
venture produces the typical products;  and 10% when the economic benefit of the
joint venture is resulted.

Article 3 Management of Cash and Foreign Currency

      3.1 In accounting,  when converting foreign currency into RMB, the foreign
exchange  rates is fixed on the 1st day of each  month,  published  by the State
Administration of Foreign Exchange.

Article 4 Asset & Inventory Calculation

      4.1 Inventory will be calculated  based on lower of cost of  manufacturing
or sale price.

Article 5 Fixed Asset Calculation

      5.1 Fixed assets (Equipment,  Machines,  Tools, Factory & Other Buildings)
shall be based on five year depreciation.

      5.2 Any  fixed  asset  transaction  has to be  approved  by the  board  of
directors.

Article 6 Intangible Assets and Other Assets

      6.1 Intangible Assets (Intellectual Property, Goodwill, etc ) shall at the
depreciation rate: full depreciation in five years.

      6.2 Construction Fees: full depreciation in five years.

Article 7 Calculation of Cost and Expenses

      7.1 IMP will provide with cost factors input.

Article 8 Calculation of Sales and Profits

      8.1 Methodology Standard
<PAGE>

      8.2  Profit  Sharing:  Profits  shall be shared  according  to the  equity
structure of the joint venture.

      8.3 The general  manager shall present the profit sharing  proposal to the
board of directors within 2 months of the financial year end.

Article 9 Account Classification and Accounting Report

      9.1 The un-audited  accounting report shall be presented to the management
office and shareholders on or before the 10th day of the following month.

      9.2 IMP shall be given the accounting  report in both U.S.  Dollars and in
Renminbi.

      9.3 The  accounting  report  should  show  budget  variances.  The general
manager should explain major variances from budget.

For Party A (Minghua)                              For Party B (IMP)


/s/ (sd ---)                                       /s/ (sd ---)
(Signature)                                        (Signature)

<PAGE>

Attachment 6 Trade Mark License Agreement

      According to the  Memorandum  of  Understanding  Relating to Joint Venture
between IMP Inc and NingBo Minghua  Microelectronic Co Ltd of China, through the
consultations  about the  industrial  property  and the payment  arrangement  of
compensation. both parties agree with the following:

      The joint  venture of IMP and Minghua shall have the rights to use the IMP
trade mark. The products made by the joint venture can mark IMP trade mark.

      IMP and the joint venture shall sign a seperate agreement on the terms and
conditions of the sales and marketing of IMP standard products and the IMP trade
mark.

For Party A (Minghua)                              For Party B (IMP)


/s/ (sd ---)                                       /s/ (sd ---)
(Signature)                                        (Signature)

<PAGE>

Attachment 7 Idustrial Proporty

A. IMP's Process Technology

      IMP shall  provide with the 34 kinds of  processing  technology  which had
been developed before 1999 and recorded on the disc of IMP:

1.  Process C0809-5 Volt Analog
2.  Process C0810 - High Resistance Poly for Analog
3.  Process C1004-5 Volt Digital
4.  Process C1012-5 Volt Digital
5.  Process C1015 - Analog Mixed Mode
6.  Process C1026 - Schottky Diode and Low TC P-Poly Resistor
7.  Process C1027 - Low TC-P-Poly Resistor
8.  Process C1028 - Low TC-P-Poly Resistor
9.  Process C1029 - Schottky Diode and High-Resistance P-Poly Resistor
10. Process C1201 - Digital Double Metal
11. Process Cl202 - Analog Mixed Mode
12. Process C1203 - 2.0GHz
13. Process C1206 - 6.4GHz
14. Process C1209 - EECMOS
15. Process C1210 - Zero Threshold Devices
16. Process C1212 - 12 Volt Bipolar Operation
17. Process C1215 - Low Threshold Devices
18. Process C1216 - 15 Volt Operation
19. Process C1219 - EEPROM
20. Process C1221 - High-Resistance Poly for Analog
21. Process C1225 - BiCMOS
22. Process C1226 - 100V CMOS, Double Metal-Double Poly
23. Process C1227 - 30V Double Metal-Double Poly
24. Process C1229 - 30V Double Metal-Double Poly
25. Process C1230 - Low TCR P-Poly for Analog
26. Process C1231 - 30V Double Metal-Double Poly
27. Process C1232 - EEPROM with Lateral PNP
28. Process C1601 - Analog Mixed Mode
29. Process C3013 - 10 Volt Single Metal Analog
30. Process C3014 - 5 Volt Single Metal Analog
31. Process C3015 - Digital
32. Process C3017 - 10 Volt Analog Mixed Mode
33. Process C3025 - 10 Volt Analog
34. Process C5014 - 5 Volt Analog

      IMP shall provide with the new developed processing technology,  including
high voltage (100-1000 V) CMOS Processing technology, developed from 1999-2002.

<PAGE>

The  processing   technology   provided  by  IMP  shall  include  the  following
catergories.  (1.5V 700V analog and mixed signal IC processing technology,  more
than 40 typies.)

1.    Super low power CCMOS, BiCMOS technology(l.5V - 3.0V)

This  technology  is suitable to develop  super low power circuit for battery or
backup, such as PDA, Wireless phone MP3 player battery circuit for mobile phone,
cell phone, palm computer.

The typical technology include.

Lot traveler, process flow & specifications, elect para design rules & training.

2.    Standrad  analog and mixed signal IC processing  technology  (3V-18V CMOS,
      BiCMOS, Bipolar).

This technology is suitable to develop standard analog and mixed signal IC, such
as PWM circuit, DC.DC conyerter. Power management and regulater circuits.

The typical technology include.

Lot traveler, process flow & specifications, elect para design rules & training.

3.    High voltage  compatible analog and mixed signal IC processing  technology
      (3V -500V CMOS, BiCMOS, BCD).

This technology is suitable to develop electric power devices,  power management
and motor drivier Ics.

The typical technology include:

Lot traveler, process flow & specifications, elect para design rules & training.

4.    Super high voltage high current CMOS. BiCMOS. BCD. DMOS technology.

This technology is suitable to develop new electric power devices, motor drivier
circuit, conven frequency circuit for home appliances, display drive circuit.

The typical technology include,

Lot traveler, process flow & specifications, elect para design rules & training.

5.    EEPROM, EPROM processing technology

This technology is suitable to develop varies circuits of IC cards.

The typical technology include,

Lot traveler, process flow & specifications, elect para design rules & training.

More detailed  technical data than those on the dice of IMP shall he provided as
well by IMP, including,

(1) Main steps of the manufacturing process flow

The detailed  processing  steps,  the processing and monitoring  requirement for
each step  shall be  included.  The  format of a ample is shown in  Appendix 1 A
Sample of Processing Flow.

(2) Detailed layout design rules

The detailed layout design rules for each process  technology shall he provided,
such as max and min width,  max or min space,  etc, and with the  drawings.  The
format of a sample is shown in Appendix 2. A Sample of Layout Design Rules.

(3) Technical description for the layout of each layer

For  example,  there are 20 masks for Process  C1026-  Schomky  Diede and Low TC
P-Poly Resister.

The detailed function of each layer of the layout shall he explained.

<PAGE>

(4) Technical description for the layout cell library

The detailed  technology  file of layout design and circuit  design,  and layout
data base library as well as base cell unit layout library, shall be provided. A
sample is shown in Appendix 3 A Sample of single poly EEPROM storage cell layout
and circuit design.

(5) The cross-section view of the technology process

A sample  is shown in  Appendix;  4A  Sample  of the  Cross-Section  View of the
Technology Process.

(6) PCM (Process Control Monitor)

The PCM,  layout and  circuit for the test  device for each  process  technology
shall be provided.  The test technique  includes:  PCM test system; PCM software
operation  system;  the  application  software for PCM test;  circuit and layout
design of test device;  the device parameter  testing method and operation;  the
test analyzing of the device parameter.

      B. IMP's Products

IMP's process  technology  can enable the joint venture to produce the following
products:

      1. Main products of IMP

      The present products of IMP are mainly in two categories: Power Management
circuits and Data Communication  circuits.  The PM circuits mainly includes five
kinds of circuits: PWM control circuit; Low drop regulator; MPU monitor circuit;
General  series bus power  management  circuit;  Field effect LED drive circuit,
etc.  The  DC  circuits  mainly  includes  three  kinds  of  circuits:   General
asynchronous  receive  and  transmit  circuit;  Single SCSI  interface  circuit;
Multi-model LVD SCSI interface circuit, etc.

1.1 Power Management

1.1.1 PWM Controllers

Key Features

      o     384x Series Pinout with BiCMOS Technology
      o     Zero Cross-Conduction Current by Design
      o     65ns Maximum Current-Sense Delay
      o     120uA Maximum Start-Up Current
      o     1.5uA Maximum Operating Current
      o     High Output Current Drive
            -     -1 A, IMP38HC4x
            -     -0.5 A, IMP38C4x
      o     20V Maximum Supply Voltage
      o     Trimmed Oscillator Discharge Current

--------------------------------------------------------------------------------
Part Number      Start Up       Minimum       Maximum Duty     Peak Output Drive
                 Voltage        Operating     Cycle
                                Voltage
--------------------------------------------------------------------------------
IMP38C42         14.5V          9.0V          96%              0.5A
--------------------------------------------------------------------------------
IMP38C43         8.4V           7.6V          96%              0.5A
--------------------------------------------------------------------------------
IMP38C44         14.5V          9.0V          50%              0.5A
--------------------------------------------------------------------------------
IMP38C45         8.4V           7.6V          50%              0.5A
--------------------------------------------------------------------------------
IMP38HC42        14.5V          9.0V          96%              1.0A
--------------------------------------------------------------------------------

<PAGE>

--------------------------------------------------------------------------------
IMP38HC43        8.4V           7.6V          96%              1.0A
--------------------------------------------------------------------------------
IMP38HC44        14.5V          9.0V          50%              1.0A
--------------------------------------------------------------------------------
IMP38HC45        8.4V           7.6V          50%              1.0A
--------------------------------------------------------------------------------
Pin-for-Pin Enhanced Replacements for Micrel MIC38C/HC4x and GMT38C4x/HC4x
--------------------------------------------------------------------------------

1.1.2 Low Dropout Voltage Regulators

1. IMP37 LDO

Key Features

      o     Low Dropout Voltage

            o     0.8V maximum at l00mA

            o     0.95V maximum at 800mA

            o     Reduced Quiescent Current: 75uA Maximum

            o     20% lower dropout voltage than "1117" LDO regulators

      o     l% Trimmed 2.5V, 3.0V and 3.3V Outputs

      o     Up to 5.5V input voltage

      o     "1117" Pin Compatible

      o     Guaranteed Low Dropout Voltage at Multiple Current Levels

      o     High-efficiency linear power supplies

      o     Post regulator for switching supplies

      o     5V to 3.3V linear regulators

2. IMP2xxx LDOS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
IMP Base     Output         Minimum   Shutdown Pin    Adjust   Error      Reference     Telcom
Part         Voltage        Output                    Pin      Flag       Bypass Pin    Equivalent
Number                      Current                            Output
                            (mA)
--------------------------------------------------------------------------------------------------
<S>          <C>            <C>       <C>             <C>      <C>        <C>           <C>
IMP2014      Fixed          60        X                                   X             TC1014
             Options(7)
--------------------------------------------------------------------------------------------------
IMP2015      Fixed          110       X                                   X             TC1015
             Options(7)
--------------------------------------------------------------------------------------------------
IMP2054      Fixed          60        X                        X                        TC1054
             Options(7)
--------------------------------------------------------------------------------------------------
IMP2055      Fixed          110       X                        X                        TC1055
             Options(7)
--------------------------------------------------------------------------------------------------
IMP2070      Adjustable     60        X               X                                 TC1070
--------------------------------------------------------------------------------------------------
IMP2071      Adjustable     110       X               X                                 TC1071
--------------------------------------------------------------------------------------------------
IMP2185      Fixed          160       X                                   X             TC1185
             Options(7)
--------------------------------------------------------------------------------------------------
IMP2186      Fixed          160       X                        X                        TC1186
             Options(7)
--------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
--------------------------------------------------------------------------------------------------
<S>          <C>            <C>       <C>             <C>      <C>        <C>           <C>
IMP2187      Adjustable     160       X                                                 TC1187
--------------------------------------------------------------------------------------------------
Notes:      1.    Fixed Output Voltage  Options are: 2.5V,  2.7V,  2.85V,  3.0V,
                  3.3V, 3.6V, and 4.0V.
            2.    IMP2070, IMP2071 and IMP2187 have adjustable outputs.
--------------------------------------------------------------------------------------------------
</TABLE>

1.1.3 Microprocessor Supervisors

1. IMP1232LP

      o     5V Low Power Supervisor

      o     User selectable threshold tolerance via TOL pin

            o     5% for 4.74V max. threshold and 10% for 4.49V

      o     Selectable watchdog timer period via TD pin: 150ms/610ms/1.2sec

      o     40% lower power supply current than Dallas

            o     30m A maximum (IMP) vs 50m A for Dallas

2. IMP1832

      o     3.0/.3V Low Power Supervisor

      o     User selectable threshold tolerance via TOL pin

            o     10% for 2.97V max. threshold and 20% for 2.64V max threshold

      o     Selectable watchdog timer period via TD pin: 150ms/610ms/1.2sec

      o     40% lower power supply current than Dallas

            o     20m A maximum (IMP) vs 35m A for Dallas

3. IMP161, IMP162

      o     Edge triggered manual reset input

      o     Low supply current extends battery life Low supply current makes the
            IMP161/162 ideal for use in battery operated equipment.

      o     Single pulse output CMOS/TTL logic or switch interface

      o     With 3V  supplies  power  consumption  is 8m W  typically  and 30m W
            maximum

4. IMP1810/1811/1812/1815/1816/1817/1834/1834A/1834D

--------------------------------------------------------------------------------
IMP Part             Output Stage           RESET Polarity         System Supply
--------------------------------------------------------------------------------

<PAGE>

--------------------------------------------------------------------------------
IMP1810              Push-Pull              LOW                    5V
--------------------------------------------------------------------------------
IMP1811              Open-Drain             LOW                    5V
--------------------------------------------------------------------------------
IMP1812              Push-Pull              HIGH                   5V
--------------------------------------------------------------------------------
IMP1815              Push-Pull              LOW                    3/3.3V
--------------------------------------------------------------------------------
IMP1816              Open-Drain             LOW                    3/3.3V
--------------------------------------------------------------------------------
IMP1817              Push-Pull              HIGH                   3/3.3V
--------------------------------------------------------------------------------
IMP1834              Push-Pull              LOW                    3.3/5V
--------------------------------------------------------------------------------
IMP1834A             Open-Drain             LOW                    3.3/5V
--------------------------------------------------------------------------------
IMP1834D             Push-Pull              HIGH                   3.3/5V
--------------------------------------------------------------------------------

5. IMP1233D and 1233M

--------------------------------------------------------------------------------
IMP Part            Reset Threshold        Maximum Supply         Package
                                           Current
--------------------------------------------------------------------------------
IMP1233MS-55        4.625V                 20 microamperes        8-pin, SO
--------------------------------------------------------------------------------
IMP1233MS-5         4.375V                 20 microamperes        8-pin, SO
--------------------------------------------------------------------------------
IMP1233MS-3         2.720V                 20 microamperes        8-pin, SO
--------------------------------------------------------------------------------
IMP1233DZ-5         4.625V                 20 microamperes        4-pin, SOT-223
--------------------------------------------------------------------------------
IMP1233DZ-15        4.125V                 20 microamperes        4-pin, SOT-223
--------------------------------------------------------------------------------
IMP1233DZ-10        4.375V                 20 microamperes        4-pin, SOT-223
--------------------------------------------------------------------------------

6. IMP690A, IMP692A, IMP802L/M, and IMP805L

--------------------------------------------------------------------------------
IMP Part No      RESET           Threshold          Power Fail         Watchdog
                 Polarity        Voltage            Threshold          Function
                                                    Accuracy
--------------------------------------------------------------------------------
IMP690A          LOW             4.65V              4%                 YES
--------------------------------------------------------------------------------
IMP692A          LOW             4.40V              4%                 YES
--------------------------------------------------------------------------------
IMP802L          LOW             4.65V              2%                 YES
--------------------------------------------------------------------------------
IMP802M          LOW             4.40V              2%                 YES
--------------------------------------------------------------------------------
IMP805L          HIGH            4 40V              4%                 YES
--------------------------------------------------------------------------------

7. IMP706P/R/S/T/J, IMP708P/R/S/T/J, IMP705, IMP706, IMP707, IMP708, and IMP813L

--------------------------------------------------------------------------------
IMP Part No       RESET         Manual      Watchdog    Threshold Voltage
                                RESET       Timer
--------------------------------------------------------------------------------
IMP706P           LOW           YES         YES         2.63V
--------------------------------------------------------------------------------
IMP706R/S/T/J     HIGH          YES         YES         2.63V/2.93V/3.08V/ 4.0V
--------------------------------------------------------------------------------
IMP708R/S/T/J     LOW and       YES         NO          2.63V/2.93V/3.08V/ 4.0V
                  HIGH
--------------------------------------------------------------------------------
IMP705            LOW           YES         YES         4.65V
--------------------------------------------------------------------------------
IMP706            LOW           YES         YES         4.40V
--------------------------------------------------------------------------------
IMP707            LOW and       YES         NO          4.65V
                  HIGH
--------------------------------------------------------------------------------
IMP708            LOW and       YES         NO          4.40V
                  HIGH
--------------------------------------------------------------------------------
IMP813            HIGH          YES         YES         4.65V
--------------------------------------------------------------------------------

8. IMP809, IMP810, IMP811, IMP812

<PAGE>

      o     Low Power, Low Cost Microprocessor Supervisors

      o     75% Lower Power Supply Current than Maxim

--------------------------------------------------------------------------------
                              IMP809     IMP810        IMP811           IMP812
--------------------------------------------------------------------------------
Package Pins                  3          3             4                4
--------------------------------------------------------------------------------
Package Type                  SOT-23     SOT-23        SOT-143          SOT-143
--------------------------------------------------------------------------------
Manual Reset                                           o                o
--------------------------------------------------------------------------------
Active HIGH RESET Output                 o                              o
--------------------------------------------------------------------------------
Active LOW RESET Output       o                        o
--------------------------------------------------------------------------------

1.1.4 Universal Serial Bus

      Power Management Products

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
IMP Part Number    Package       Operating Temperature                  # of          Output Resistance      Enable
                                 Range                                  Switches      (milli-ohms)           Logic
-------------------------------------------------------------------------------------------------------------------
<S>                <C>           <C>                                    <C>           <C>                    <C>
IMP2524-1BWM       16-SO         -40[degrees]C to +85[degrees]C         4             140.0                  HIGH
-------------------------------------------------------------------------------------------------------------------
IMP2524-2BWM       16-SO         -40[degrees]C to +85[degrees]C         4             140.0                  LOW
-------------------------------------------------------------------------------------------------------------------
IMP2524-1BN        16-DIP        -40[degrees]C to +85[degrees]C         4             140.0                  HIGH
-------------------------------------------------------------------------------------------------------------------
IMP2524-2BN        16-DIP        -40[degrees]C to +85[degrees]C         4             140.0                  LOW
-------------------------------------------------------------------------------------------------------------------
IMP2525-1BM        8-SO          -40[degrees]C to +85[degrees]C         1             140.0                  HIGH
-------------------------------------------------------------------------------------------------------------------
IMP2525-2BM        8-SO          -40[degrees]C to +85[degrees]C         1             140.0                  LOW
-------------------------------------------------------------------------------------------------------------------
IMP2525-1BN        8-DIP         -40[degrees]C to +85[degrees]C         1             140.0                  HIGH
-------------------------------------------------------------------------------------------------------------------
IMP2525-2BN        8-DIP         -40[degrees]C to +85[degrees]C         1             140.0                  LOW
-------------------------------------------------------------------------------------------------------------------
IMP2525A-1BM       8-SO          -40[degrees]C to +85[degrees]C         1             70.0                   HIGH
-------------------------------------------------------------------------------------------------------------------
IMP2525A-2BM       8-SO          -40[degrees]C to +85[degrees]C         1             70.0                   LOW
-------------------------------------------------------------------------------------------------------------------
IMP2525A-1BN       8-DIP         -40[degrees]C to +85[degrees]C         1             70.0                   HIGH
-------------------------------------------------------------------------------------------------------------------
IMP2525A-2BN       8-DIP         -40[degrees]C to +85[degrees]C         1             70.0                   LOW
-------------------------------------------------------------------------------------------------------------------
IMP2526-1BM        8-SO          -40[degrees]C to +85[degrees]C         2             140.0                  HIGH
-------------------------------------------------------------------------------------------------------------------
IMP2526-2DM        8-SO          -40[degrees]C to +85[degrees]C         2             140.0                  LOW
-------------------------------------------------------------------------------------------------------------------
IMP2526-1BN        8-DIP         -40[degrees]C to +85[degrees]C         2             140.0                  HIGH
-------------------------------------------------------------------------------------------------------------------
IMP2526-2BN        8-DIP         -40[degrees]C to +85[degrees]C         2             140.0                  LOW
-------------------------------------------------------------------------------------------------------------------
IMP2527-1BWM       16-SO         -40[degrees]C to +85[degrees]C         4             300.0                  HIGH
-------------------------------------------------------------------------------------------------------------------
IMP2527-2BWM       16-SO         -40[degrees]C to +85[degrees]C         4             300.0                  LOW
-------------------------------------------------------------------------------------------------------------------
IMP2527-1BN        16-DIP        -40[degrees]C to +85[degrees]C         4             300.0                  HIGH
-------------------------------------------------------------------------------------------------------------------
IMP2527-2BN        16-DIP        -40[degrees]C to +85[degrees]C         4             300.0                  LOW
-------------------------------------------------------------------------------------------------------------------
</TABLE>

1.1.5 Electroluminescent Lamp Drivers

      IMP offers a full line of  Electroluminescent  (EL) lamp driver integrated
circuits.  The four EL lamp driving  functions are integrated on chip. These are
the switch-mode power supply,  its high-frequency  oscillator,  the high voltage
H-bridge lamp driver and its low-frequency oscillator.

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
IMP Part     Packages                  Input Voltage      Output Voltage      Number of Drivers
Number                                 Range (V)          (Vpp)
-----------------------------------------------------------------------------------------------
<S>          <C>                       <C>                <C>                 <C>
IMP522       10-MicroSO                2.0 to 6.5V        220                 2
-----------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
-----------------------------------------------------------------------------------------------
<S>          <C>                       <C>                <C>                 <C>
IMP525       8-SO, 8-MicroSO, Die      0.9 to 2.5V        112                 1
-----------------------------------------------------------------------------------------------
IMP527       8-SO, 8-MicroSO, Die      0.9 to 2.5V        180                 1
-----------------------------------------------------------------------------------------------
IMP528       8-SO, 8-MicroSO, Die      2.0 to 6.5         220                 1
-----------------------------------------------------------------------------------------------
IMP560       8.SO, 8-MicroSO, Die      2.0 to 6.5         120                 1
-----------------------------------------------------------------------------------------------
IMP803       8-SO, 8-MicroSO, Die      2.0 to 6.5         180                 1
-----------------------------------------------------------------------------------------------
</TABLE>

1.1.6 PCM Digital Switch

IMP8980D PCM Digital Switch

Key Features

      o     ST-BUS compatible

      o     8-line x 32-channel inputs

      o     8-line x 32-channel outputs

      o     256 ports non-blocking switch

      o     Single power supply (+5V)

      o     3OmW power consumption

      o     Microprocessor-control interface

      o     Pin-compatible with Mitel MT8980

1.2 Data Communication

1.2.1 UART Products

          ----------------------------------------------------
          Part Number              Description
          ----------------------------------------------------
          IMP16C450                UART
          ----------------------------------------------------
          IMPI6C550                UART with FIFO
          ----------------------------------------------------
          IMP16C552                Dual UART with Parallel Port
          ----------------------------------------------------
          IMP16C554                Quad UART
          ----------------------------------------------------
          IMP68C681                DUART: Phillilps Compatible
          ----------------------------------------------------
          IMP88C681                DUART: Phillilps Compatible
          ----------------------------------------------------
          IMP82C684                DUART: Phillilps Compatible
          ----------------------------------------------------

1.2.2 Single Ended SCSI Terminators

      IMP5111/5112 9-line, Non-Linear SCSI

      IMP5115 9-line, Non-Linear SCSI

      IMP5121 27-line, Non-Linear SCSI

      IMP5218 9-line, Non-Linear SCSI

      IMP5219 9-line, Non-Linear SCSI

<PAGE>

      IMP5225 18-line, Non-Linear SCSI

      IMP5226 18-line, Non-Linear SCSI

1.2.3 Multimode LVD SCSI Terminators

-------------------------------------------------------------
Part Number     Packages          Max. Output       Cross
                                  Capacitance       Reference
-------------------------------------------------------------
IMP5241         36P-SSOP          3pF               DS2118M
                24P-TSSOP                           UCC5630
-------------------------------------------------------------
IMP5242         36P-SSOP          3pF
                24P-TSSOP
-------------------------------------------------------------
 All IMP multimode devices are Hot Swap capable
-------------------------------------------------------------

      IMP shall provide with integrated technical information for the design and
manufacture of the products, including;

      (1)   Circuit schematic and logic diagram;

      (2)   Physical layout;

      (3)   Working masks;

      (4)   Testing method for the product;

      (5)   Package type and manufacture.

2 List of the standard products of IMP

Part of the standard products of IMP is listed as following;

IMP1232LP        IMP1233DZ-15         IMP1810R-15         IMP1812R-15
IMP1232LPCMA     IMP1233DZ-5          IMP1810R-5          IMP1812R-5
IMP1232LPEMA     IMP1233M-3           IMP1811-10          IMP1815-10
IMP1232LPN       IMP1233M-5           IMP1811-15          IMP1815-20
IMP1232LPS       IMP1233M-55          IMP1811-5           IMP1815-5
IMP1232LPS-2     IMP1233MS-3          IMP1811R-10         IMP18l5R-10
IMP1232LPSN      IMP1233MS-5          IMP1811R-15         IMP1815R-20
IMP1232LPSN-2    IMP1233MS-55         IMP1811R-5          IMP1815R-5
IMP1233D-10      IMP1810-10           IMP1812-10          IMP1816-10
IMP1233D-15      IMP1810-15           IMP1812-15          IMP1816-20
IMP1233D-5       IMP1810-5            IMP1812-5           IMP1816-5
IMP1233DZ-10     IMP1810R-10          IMP1812R-10         IMP1816R-10

<PAGE>

IMP1816R-20      IMP38C44ESA          IMP5241CPW          IMP707CPA
IMP1816R-5       IMP38C44ESD          IMP5242CDB          IMP707CSA
IMP1817-10       IMP38C45EMA          IMP5242CPW          IMP707CUA
IMP1817-20       IMP38C45EPA          IMP5245CPW          IMP707EPA
IMP1817-5        IMP38C45EPD          IMP5246CPW          IMP707ESA
IMP1817R-10      IMP38C45ESA          IMP525EMA           IMP708CPA
IMP1817R-20      IMP38C45ESD          IMP525ESA           IMP708CSA
IMP1817R-5       IMP38HC42EMA         IMP690ACPA          IMP708CUA
IMP1832          IMP38HC42EPA         IMP690ACSA          IMP708EPA
IMP1832EMA       IMP38HC42EPD         IMP690AEPA          IMP708ESA
IMP1832S         IMP38HC42ESA         IMP690AESA          IMP708RCPA
IMP1834          IMP38HC42ESD         IMP692ACPA          IMP708RCSA
IMP1834A         IMP38HC43EMA         IMP692ACSA          IMP708RCUA
IMP1834AEMA      IMP38HC43EPA         IMP692AEPA          IMP708REPA
IMP1834AS        IMP38HC43EPD         IMP692AESA          IMP708RESA
IMP1834D         IMP38HC43ESA         IMP705CPA           IMP708SCPA
IMP1834DEMA      IMP38HC43ESD         IMP705CSA           IMP708SCSA
IMP1834DS        IMP38HC44EMA         IMP705CUA           IMP708SCUA
IMP1834EMA       IMP38HC44EPA         IMP705EPA           IMP708SEPA
IMP1834S         IMP38HC44EPD         IMP705ESA           IMP708SESA
IMP2525-1BM      IMP38HC44ESA         IMP706CPA           IMP708TCPA
IMP2525-1BN      IMP38HC44ESD         IMP706CSA           IMP708TCSA
IMP2525-2BM      IMP38HC45EMA         IMP706CUA           IMP708TCUA
IMP2525-2BN      IMP38HC45EPA         IMP706EPA           IMP708TEPA
IMP2525A-1BM     IMP38HC45EPD         IMP706ESA           IMP708TESA
IMP2525A-1BN     IMP38HC45ESA         IMP706PCPA          IMP802LCPA
IMP2525A-2BM     IMP38HC45ESD         IMP706PCSA          IMP802LCSA
IMP2525A-2BN     IMP5111CDP           IMP706PCUA          IMP802LEPA
IMP2526-1BM      IMP5111CPWP          IMP706PEPA          IMP802LESA
IMP2526-1BN      IMP5112CDP           IMP706PESA          IMP802MCPA
IMP2526-2BM      IMP5112CPWP          IMP706RCPA          IMP802MCSA
IMP2526-2BN      IMP5115CD            IMP706RCSA          IMP802MEPA
IMP38C42EMA      IMP5115CDW           IMP706RCUA          IMP802MESA
IMP38C42EPA      IMP5115CPWP          IMP706REPA          IMP803IMA
IMP38C42EPD      IMP5121CDB           IMP706RESA          IMP803LG
IMP38C42ESA      IMP5121CPW           IMP706SCPA          IMP805LCPA
IMP38C42ESD      IMP5218CDW           IMP706SCSA          IMP805LCSA
IMP38C43EMA      IMP5218CPW           IMP706SCUA          IMP805LEPA
IMP38C43EPA      IMP5219CDW           IMP706SEPA          IMP805LESA
IMP38C43EPD      IMP5219CPW           IMP706SESA          IMP809JEUR
IMP38C43ESA      IMP5225CDB           IMP706TCPA          IMP809LEUR
IMP38C43ESD      IMP5225CDWP          IMP706TCSA          IMP809MEUR
IMP38C44EMA      IMP5226CDB           IMP706TCUA          IMP809REUR
IMP38C44EPA      IMP5226CDWP          IMP706TEPA          IMP809SEUR
IMP38C44EPD      IMP5241CDB           IMP706TESA          IMP809TEUR

<PAGE>

IMP810JEUR       IMP8l3LEPA           IMP2054-3.0JUK/T    IMP2185-4.0JUK/T
IMP810LEUR       IMP813LESA           IMP2054-3.3JUK/T    IMP2185-5.0JUK/T
IMP810MEUR       IMP2014-2.5JUK/T     IMP2054-3.6JUK/T    IMP2186-2.5JUK/T
IMP810REUR       IMP2014-2.7JUK/T     IMP2054-4.0JUK/T    IMP2186-2.7JUK/T
IMP810SEUR       IMP2014-2.85JUK/T    IMP2054-5.0JUK/T    IMP2186-2.85JUK/T
IMP810TEUR       IMP2014-3.0JUK/T     IMP2055-2.5JUK/T    IMP2186-3.0JUK/T
IMP811JEUS       IMP2014-3.3JUK/T     IMP2055-2.7JUK/T    IMP2186-3.3JUK/T
IMP811LEUS       IMP2014-3.6JUK/T     IMP2055-2.85JUK/T   IMP2186-3.6JUK/T
IMP811MEUS       IMP2014-4.0JUK/T     IMP2055-3.0JUK/T    IMP2186-4.0JUK/T
IMP811REUS       IMP2014-5.0JUK/T     IMP2055-3.3JUK/T    IMP2186-5.0JUK/T
IMP811SEUS       IMP2015-2.5JUK/T     IMP2055-3.6JUK/T    IMP2l87JUK/T
IMP811TEUS       IMP2015-2.7JUK/T     IMP2055-4.0JUK/T    IMP37-25JST
IMP812JEUS       IMP2015-2.85JUK/T    IMP2055-5.0JUK/T    IMP37-30JST
IMP812LEUS       IMP2015-3.0JUK/T     IMP2070JUK/T        IMP37-33JST
IMP812MEUS       IMP2015-3.3JUK/T     IMP2071JUK/T        IMP37-25JCM
IMP812REUS       IMP2015-3.6JUK/T     IMP2185-2.5JUK/T    IMP37-30JCM
IMP812SEUS       IMP2015-4.0JUK/T     IMP2185-2.7JUK/T    IMP37-33JCM
IMP812TEUS       IMP2015-5.0JUK/T     IMP2185-2.85JUK/T   IMP8980DE
IMP813LCPA       IMP2054-2.5JUK/T     IMP2185-3.0JUK/T    IMP8980DP
IMP813LCSA       IMP2054-2.7JUK/T     IMP2185-3.3JUK/T
IMP813LCUA       IMP2054-2.85JUK/T    IMP2185-3.6JUK/T

      IMP shall  provide  with the  relevent  certificatation  materials  of the
industrial  proporty  transferred to the joint venture,  including:  the copy of
certificate for patents or trade mark etc.

Appendix 1 A Sample of Processing Flow

Appendix 2 A Sample of Layout Design Rule

For Party A (Minghua)                       For Party B (IMP)


/s/ (sd ---)                                /s/ (sd ---)
(Signature)                                 (Signature)
<PAGE>

                    The Regulation of IMP&MH Microelectronic
                            Limited Liability Company

Chapter 1 General provisions

Article 1

      In  accordance   with  the  contract  for  the  joint  venture  of  IMP&MH
Microelectronic Co. Ltd (hereafter referred to as the joint venture),  which was
concluded  in the  light of the law of the  People's Republic  of China on Joint
Venture Using Chinese and Foreign Investment and other relevant Chinese laws and
regulations  through the  investment  of IMP Company  (hereafter  referred to as
Party B) and Minghua  Microelectronic  Investment  Company (the original Minghua
Microelectronic Company,  hereafter referred to as Party A) in Ningbo, Zhejiang,
on           , 2002, this regulations of the joint venture is drawn up.

Article 2

      The name of the joint venture is [Chinese translation not available]

      The name in English is IMP&MH Microelectronic Co. Ltd.

      The legal address of the joint venture is at:

            [Chinese translation not available]

Article 3

      The name and legal address of both parties are as follows:

      Party A: Minghua Microelectronic Investment Co. Ltd; registered in Ningbo,
zhejiang.

      Legal address: [Chinese translation not available]

      Legal representative: Name: [Chinese translation not available]

            Position: Chairman of the board

            Nationality: Chinese

      Party B: IMP Inc. registered in USA.

      Legal address: 2830 North first St., San Jose, CA 94134

      Legal representative: Name: Subbarao Pinamaneni

            Position: Chairman of the board

            Nationality: American

      Any changes of aforementioned with one party shall be noticed to the joint
venture and to the other party. Otherwise, the joint venture and the other Party
shall not be responsible for the legal consequences arouse from the changes.

Article 4

      The joint venture is a limited liability company.

Article 5

<PAGE>

      The joint venture is a legal person in China.  All activities of the joint
venture shall be governed by the laws, decrees,  pertinent rules and regulations
of the People's Republic of China.

Chapter 2 The Purpose, Scope of Business

Article 6

      The goals of the  parties of the joint  venture  are to  enhance  economic
co-operation and technical  exchanges,  to improve the product quality,  develop
new products, and gain a competitive position in the world market in quality and
price by adopting advanced and appropriate  technology and scientific management
methods,  so as to raise  economic  results  and  ensure  satisfactory  economic
benefits for each investor.

Article 7

      The business scope of the joint venture is to design, develop, produce and
sell  Integrated  Circuits,  and products of electronic  modules and software as
well.

Article 8

      The  production  capacity  of  simeconductor  electric  power  devices and
others,  after the joint venture is put into  operation,  shall be 12,000 wafers
per month (5 inch wafer, l2mask process, 0.65 micron level).

      The production scale may be increased up to 40,000 with the development of
the production and  operation.  The wafer  varieties may be developed into 6 - 8
inch, 0.5 micron level.

Article 9

      The products of the joint venture will be sold both on the Chinese and the
overseas  market,  the export portion accounts for 90%, and 10% for the domestic
market, for the first three years.

Chapter 3 Total Amount of Investment and the Registered Capital

Article 10

      The total amount of investment of the joint venture is RMB 248.24  million
Yuan (including US$ 400 million).

      The registered capital of the joint venture is RMB 152 million Yuan.

Article 11

      Of the registered capital: Party A pay RMB 76 million Yuan, accounting for
50% of the registered capital;

      Party B pay RMB 76 million Yuan, accounting for 50%.

Article 12

      The  registered  capital of the joint venture shall be paid by Party A and
Party B  respectively  within  the  allotted  time,  in the form and  quantities
according to the provisions of the contract of the joint venture.

Article 13

      Within 15 days on any installment payment of the registered capital of the
joint venture, paid by

<PAGE>

      Party  A or  Party  B,  the  joint  venture  shall  invite  the  certified
accountant registered in China to check it and produce the report of the capital
checking.  Within 30 days on receiving the report of the capital  checking,  the
joint  venture  shall  produce the  certificate  of  investment to the party and
report to the original examination and approval authority and the administration
department of business on file.

Article 14

      Within the duration of the joint venture,  the  registered  capital of the
joint venture shall not be decreased.  Any adjustment of the registered  capital
and the total  amount of  investment  shall be reported  to and  approved by the
examination and approval authority.

Article 15

      In case any party to the joint  venture  intends  to assign all or part of
his  investment  subscribed  to a  third  party,  the  party  shall  ask for the
agreement of the other party,  and the other part has  preemptive  rights to buy
where the condition is the same.

Article 16

      Any increase or transfer of the  registered  capital shall be  unanimously
approved by the board and  reported to the  original  examination  and  approval
authorities   for  approval,   and  shall  be  handled  and  registered  at  the
administration department of business.

Article 17

      The shortage  between the total  investment and registered  capital of the
joint  venture,  and the working  capital  dollar  required by the joint venture
shall be lent from banks in China or overseas.

      Without the advanced  agreement with the other party,  any party shall not
raise a mortgage or other creditor's rights on all or part of his investment.

Chapter 4 The board of Directors

Article 18

      The date of  registration  of the joint  venture  shall be the date of the
establishment  of the board of  directors  of the  joint  venture.  The  highest
authority of the joint venture shall be its board of directors.

Article 19

      The board of  directors  is composed of 9  directors,  of which 5 shall be
appointed by Party A, 4 by Party B. the chairman  shall be appointed by Party A,
and the vice  president  (one  person)  by Party B. The term of  office  for the
directors,  chairman and vice-chairman is three years,  their term of office may
be renewed if continuously appointed by the relevant party.

      About the  appointment  or the dismissal of the director,  one party shall
notice the other party in writings and report the  administration  department of
business on file.

Article 20

      The board of the joint  venture  shall decide all major issues  concerning
the joint venture,

<PAGE>

including:

      1)    Amendment of the regulation of the joint venture;

      2)    Separating of the joint  venture or merging with the other  economic
            units;

      3)    Termination of the joint venture;

      4)    Increase  of  the  registered   capital  and  the  total  amount  of
            investment or the transfer of the investment;

      5)    The investment by the joint venture to other economic units;

      6)    Setting up of branches or affiliated units of the joint venture;

      7)    Proposal  of  annual  profit  disposal  of the joint  venture  after
            taxing;

      8)    Allocations for reserve funds,  expansion funds of the joint venture
            and welfare founds for staff and workers;

      9)    Major financial expenditure;

      10)   Annual and long term plan on production,  sales and such development
            plans, etc, of the joint venture;

      11)   Any loan or guarantor provided by the joint venture;

      12)   The  setting  of  the  basic  configuration  of the  joint  venture,
            including the positions of management staff;

      13)   Internal regulations of the joint venture;

      14)   Appointment,  dismissal  and  rewards  for  high-ranking  management
            personnel;

      15)   Engaging of certified accountant, auditor or lawyer, etc.;

      16)   Lawsuits or arbitration arising from the joint venture;

      17)   Sale of the fixed assets of the joint venture;

      18)   Other issues for the approval of its directors judged by the board,

Unanimous approval shall be required for the following:

1)    Amendment of the regulation of the joint venture;

2)    Termination of the joint venture;

3)    Adjustment of the registered capital of the joint venture;

4)    Separations  of the joint  venture  or  merging  with the  other  economic
      unities;

5)    Transfer of the stock  ownership of the joint venture by one party or more
      parties;

6)    Mortgage of the stock  ownership of the joint venture by one party or more
      parties;

7)    Mortgage of the assets of the joint venture;

8)    Issues judged by the board for the unanimous approval of its directors.

As for  other  matters,  approval  by  majority  or a simple  majority  shall be
required.

<PAGE>

Article 21

      The  chairman  of the  board  is the  legal  representative  of the  joint
venture.  Should the chairman be unable to exercise his responsibilities for any
reason, he shall authorize the vice-chairman or any other directors to represent
the joint  venture  temporarily.  In case the  chairman  fails to  exercise  his
responsibilities  and to authorize other person  explicitly,  the  vice-chairmen
shall exercise the chairman's responsibilities.

Article 22

      The board of directors  shall convene at least one meeting every year. The
meeting  shall be called and  presided  over by the  chairman of the board.  The
chairman may convene an interim meeting based on a proposal made by more than on
third of the total member of directors.  Minutes of the meetings shall be placed
on file.

      The notice  about  convening  the meeting of the board  shall  include the
meeting's  date,  place and agenda,  etc.,  and shall be  distributed to all the
directors in writings 30 days before the convening of the meeting.

Article 23

      More than two third of the number of directors of the board present at the
meeting (including the interim meeting) shall be required. Each director has one
ballot for voting.

Article 24

      All parties shall be voluntary to ensure the  directors  entrusted by them
respectively  present at the meeting of the board. Should the director be unable
at the meeting,  he shall  entrust  other person at meeting with the  commission
notice.

Article 25

      Should the  directors  entrusted  by one party or parties be unable at the
meeting  of the board and fail to  entrust  other  person,  therefore  the board
should  not make the  resolutions  to the  major  matters  concerning  the joint
venture  according  to the law and  regulations,  and to the  contract  and this
regulation of the joint venture,  within 30 days, the other party may notice the
party or  parties  unable at the  meeting  and not  entrusting  other  person at
meeting to urge them to be present at the meeting on the specified date at their
legal address.

Article 26

      Aforementioned  urging  notice  shall be  delivered  in  double-registered
letter and 60 days before the date of convening the meeting specified, and shall
give indication that the party noticed should reply whether or not to be present
at the meeting of the board within 45 days of the notice being delivered. Should
the party noticed be unable reply to the noticing party within 45 days after the
notice being  delivered,  or should the noticed party reply not to be present at
the  meeting,  the noticed  party  shall be deemed to abstain  from  voting.  On
receiving the receipt of the double-registered letter, the director entrusted by
the noticing party and other directors may

<PAGE>

convene the special  meeting of the board and then make effective  resolution to
the major matters  concerning  the joint venture with the unanimous  approval of
the directors presented at the meeting,  even if the number of directors is less
than legal number.

      As for the matters  requiring the  resolution of the board before  action,
the  chairman  of the  board may ask for the  opinion  of all the  directors  in
writings.  With the approval of more than legal number of directors in writings,
the  resolution  of  the  matter  shall  be  deemed  as  the  resolution  of the
conventional meeting.

Article 27

      The  director  of the board who has no  management  position  in the joint
venture  shall not be paid by the joint  venture.  All the relevant  expenses to
hold the meeting of the board shall be beard by the joint venture.

Chapter 5 Business management Office

Article 28

      The joint  venture  shall  establish a  management  office  which shall be
responsible for its daily management. The management office shall have a general
manager,  recommended by Party B; 4 deputy general managers recommended by Party
A. The general manager and deputy general  managers,  whose terms of office is 3
years,  shall be appointed by the board of directors.  The general manager shall
be appointed from the non-chairman  party. The term of office of the general and
deputy general managers may be renewed if continuously appointed by the board.

Article 29

      The responsibility of the general manager is to carry out the decisions of
the board,  to organize and conduct the daily  management of the joint  venture.
The deputy general  managers  shall assist the general  manager in his work, and
exercise the necessary  daily  management of the general  manager for the normal
business  operation at the absence of the general  manager.  Co-decision  by the
general and deputy general managers on the major matters shall be required.  The
scope of the general and deputy  general  managers'  function shall be discussed
and decided by the board.

      Several  department  managers may be appointed by the  management  office,
they  shall be  responsible  for the work in various  departments  respectively,
handle the  matters  handed  over by the  general  manager  and  deputy  general
managers and shall be responsible to them.

Article 30

      The general manager,  deputy general manager and other department  manager
shall perform his duty seriously and shall not hold a manager position or not be
an employee of other companies concurrently.

      In case of graft or  serious  dereliction  of duty on the part of  general
manager and deputy  managers,  the board of directors shall dismiss them through
the resolution of the meeting of the

<PAGE>

board at any time.

Article 31

      The setting of departments of the joint venture and their structures shall
be planned by the general  manager and deputy  manager and decided by the board.
The setting of other units and other positions of non-management personnel shall
be decided by the general manager and deputy managers.

Article 32

      In  case  of  graft  or  serious  dereliction  of  duty  on  the  part  of
high-ranking  management personnel,  the board of directors shall have the power
to dismiss them at any time.

Chapter 6 Finance and Accounting

Article 33

      In accordance  with Chinese laws and  regulations and the rules of finance
administration,  the joint  venture  shall  establish  the system of finance and
accounting, to carry out the financial management of the joint venture under the
responsibility of the general manager.

Article 34

      The fiscal year of the joint  venture  shall be the same as the  Gregorian
calendar.  The first fiscal year shall be from the date of  registration  of the
joint venture to December 31st of that year.  IMP will prefer the fiscal year to
match with IMP fiscal year which is April 1st to March 31st.

Article 35

      All vouchers,  receipts,  statistic statement and reports shall be written
in Chinese,  if written in English,  additional  explanation in Chinese shall be
required.

Article 36

      RMB  shall  be the  basic  monetary  adopted  by  the  joint  venture  for
accounting.  The  converting  of RMB  to  other  foreign  monetary  shall  be in
accordance with the mid exchange rate published by the State  Administration  of
Foreign Exchange in due time.

Article 37

      The joint venture shall open a foreign  exchange  account with the Bank of
China or with other banks  approved to do the foreign  exchange  business by the
People's Bank of China.

Article 38

      The joint  venture  shall  adopt the  system of  duties  and  rights,  and
accounting of loan with current international standard.

Article 39

      In the first three months of each fiscal year,  the manager  shall prepare
the  previous  year's  balance  sheet,  profit and loss  statement  and proposal
regarding the disposal of profits, and submit them to the board of directors for
examination.

Article 40

<PAGE>

      On  promising to keep the  business  secrets in advance,  any party of the
joint  venture  may employ an  auditor  at its own  expenses  to  undertake  the
accounting  checking and  examination.  The joint venture shall give its consent
for that.

Article 41

      In accordance with Rules for the  Implementation  of the Income Tax Law of
the  People's  Republic  of China to Foreign  Enterprise  and  Enterprise  Using
Foreign  Investment,  the board of the joint  venture shall decide the number of
years set for the depreciation of fixed assets of the joint venture.

Article 42

      The joint venture shall handle the matter of foreign exchange according to
the relevant rules of China about the foreign exchange management,  and keep the
balance of the foreign exchange of the joint venture.

Chapter 7 Disposal of Profits

Article 43

      Allocations  for reserve funds,  expansion  funds of the joint venture and
welfare  funds  and bonus for  staff  and  workers  shall be set aside  from the
profits after payment of income tax. If the proportion of allocations of reserve
funds is no less  than 15% of the  profits  after  payment  of income  tax,  the
decision by the board of the joint venture shall be required.

Article 44

      Within 4 months after the end of previous  fiscal  year,  the board of the
joint venture shall decide the profit  dividends  after payment of various taxes
and allocation of various funds according to the actual  conditions of the joint
venture.  The  share  dividends  shall be  distributed  with the  proportion  of
registered capital actually invested by each party.

      Without  making up the loss of previous  fiscal  years,  the joint venture
shall not draw  dividends.  The  un-allotted  profits of  previous  years may be
distributed with the profits of this fiscal year.

Article 45

      Insurance policies of the joint venture on various kinds of risks shall be
taken out with insurance  companies in China.  The types,  value and duration of
insurance  shall be  decided by the board of  director  in  accordance  with the
provisions of the insurance company.

Article 46

      The joint  venture  shall  supervise its domestic and foreign staff to pay
individual income tax according to the Individual Income Tax Law of the People's
Republic of China.

Article 47

      The lawful profits of investor  earned from the joint  venture,  the other
legal income and the capital after liquidation may be remitted abroad.

      The wages  and  other  proper  income  of the  foreign  staff of the joint
venture may be remitted

<PAGE>

abroad after the payment of individual income tax.

      The  profits of  foreign  investor  and the wages of foreign  staff of the
joint  venture  shall be paid with RMB. The joint  venture shall provide help to
convert them into foreign exchange.

Chapter 8 Staff and Workers

Article 48

      The  matters   covering  the   recruitment,   employment,   dismissal  and
resignation,  wages,  labor insurance,  welfare,  rewards,  labor discipline and
labor  protection,  etc.,  concerning the staff and workers of the joint venture
shall be handled in accordance with the Regulations of the People's  Republic of
China on Labor Management in Joint Ventures Using Chinese and Foreign Investment
and its Implementing Rules.

The joint venture shall not employ child labors.

Article 49

      The staff and  workers  required  by the joint  venture  shall be publicly
engaged in the  condition  that they are  recommended  by, or agreed  with local
labor management department,  and employed on the basis of competitive selection
through  examination test. The labor contract between the personnel enrolled and
the joint  venture shall be signed  according to the laws,  and be on filed with
the local labor management department.

Article 50

      The joint venture shall have the rights to give  penalties to those staff,
who violate the regulation of the joint venture or the discipline of labor, such
as warning,  offence recording and wage reducing,  and resignation to those with
serious offence. The resignation of staff of the joint venture shall be on filed
with the local management department.

Article 51

      The  wages  and  other  rewards  of staff of the  joint  venture  shall be
specified in the labor  contract in accordance  with relevant  Chinese rules and
the actual condition of the joint venture,  and shall be decided by the board of
directors.  With the development of the business of the joint venture,  with the
improvement of the staff's business  capabilities and technical level, the wages
of staff shall be increased properly.

Chapter 9 Labor Union

Article 52

      The staff and workers of the joint venture shall have the rights to set up
a basic unit of labor union and to take activities in accordance with the law of
the People's Republic of China on Trade Union.

Article 53

      The labor union of the joint venture  shall  represent the benefits of the
staff and workers. The task of the labor union is:

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      Protecting  the rights and  benefits of the staff in  accordance  with the
      law;

      Assisting the joint venture to arrange welfare funds and rewards properly;

      Organizing  the staff of learning  politics,  science and  technology  and
      business;

      Developing activities on arts and sports;

      Instructing the staff and workers on observing the labor  discipline,  and
on fulfilling the various tasks of the joint venture with best efforts.

Article 54

      The labor union of the joint venture,  representing  the staff and workers
as a whole,  may sign a  contract  with the joint  venture,  and  supervise  the
implementation of this contract.

Article 55

      The  representative of the labor union shall have the rights to attend the
meeting of the joint  venture as an observer  when the meeting is conceming  the
staff and workers  about  their  awards and  penalties,  wages,  welfare,  labor
protection and labor insurance.  The joint venture shall heed the opinion of the
labor union and co-operate with the labor union.

Article 56

      The joint venture shall provide the labor union with  necessary  rooms and
equipment,  according to the  provisions of the Law of the People's  Republic of
China on Trade Union,  used for offices  meetings and the  activities  about the
staff's collective welfare, culture and sports.

Article 57

      The joint  venture  shall  transfer 2% of the total wages of the staff and
workers as the funds of the labor  union.  The labor union of the joint  venture
shall use the funds in  accordance  with the  relevant  management  rules of the
funds of labor union specialized by the All-China Federation of Trade Unions.

Chapter 10 Duration Termination and Liquidation

Article 58

      The duration of the joint venture shall be for 10 years. The establishment
date of the joint venture shall be the date on which the business license of the
joint venture is issued.

Article 59

      An application  for the extension oft the duration,  proposed by one party
and  unanimously  approved by the board of directors,  shall be submitted to the
original  examination and approval authority in writings six months prior to the
expiry date of the joint venture.

Article 60

      The  contract  of the joint  venture and the joint  venture  itself may be
terminated and disbanded  before the date of expiration of the joint venture for
the reasons as follows:

(1)   Either of the parties to the  contract be  prevented  from  executing  the
      contract of the joint venture by force majeure;

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(2)   In case of inability to fulfill the contract or to continue  operation due
      to heavy losses in successive years;

(3)   The contract of the joint venture be  unnecessary to continue in operation
      due to the fact the one of the contracting parties substantially  violates
      the provisions of the contract and articles of association;

(4)   Both  parties deem that the  business  goal of the joint  venture have not
      been reached and there are no prospects on the development of business;

(5)   Other  reasons  on the  termination  of the  contract  specialized  by the
      contract the  regulation  of the joint  venture and the relevant  laws and
      regulations;

      The written  application for the disbandment of the joint venture shall be
raised by the board of directors  and approved by the  examination  and approval
authority.

      Should the  directors  of one party or more parties do not attend at or do
not  convene  the meeting of the board for more than two years so that the board
of directors can not make the  effective  resolution  of  terminating  the joint
venture,  should  those  directors  do not  reply  the no  less  than 3  notices
delivered by other investors,  the other investors may apply for the disbandment
of the joint venture to the original  examination  and approval  authority under
the witness of Chinese notarization office or the lawyer.

Article 61

      Upon the  termination of the joint venture,  liquidation  shall be carried
out. The commission of  liquidation  shall consist of at least 3 persons who are
selected from the  directors by the board or engaged from relevant  specializing
persons.

      Should  the  joint  venture  be  unable  to  organize  the  commission  of
liquidation  by himself,  the board of directors or the  investors and creditors
may apply for a special  liquidation with the original  examination and approval
authority.

      During the period of  liquidation,  the joint  venture  shall not open new
business.

Article 62

      The joint venture shall be liquidated by the  commission of liquidation in
accordance  with the  Implement of  Liquidation  of  Enterprises  Using  Foreign
Investment.

      The  property of the joint  venture  shall be  assessed by the  accountant
registered in China and invited by the commission of liquidation.

      In the  liquidation,  each  investor of the joint venture shall first take
back his  contributing  investment  respectively,  the new property  produced by
parties together shall be allotted in proportion to the investment.

      For the property of the joint venture,  the investing party shall have the
pre-emptive rights to purchase them.

Article 63

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      After  finishing  the  liquidation,  the joint  venture  shall conduct the
registration   nullifying  with  the  business  and  administration   management
department, and cancel the license of the joint venture.

Chapter 11 Regulation and Institution

Article 64

      Through the board of directors,  the joint venture shall draft regulations
and institutions as follows:

      (1)   Business management system, including the terms of reference and the
            working procedures of the various management departments;

      (2)   Regulation of staff and workers;

      (3)   Labor and wage system;

      (4)   The system of attendance promotion and rewards & penalties for staff
            and workers;

      (5)   Staff welfare institution;

      (6)   The finance system;

      (7)   The procedure of liquidation when the joint venture is disbanded;

      (8)   Other necessary rules.

Chapter 12 Appendices

Article 65

      This regulation shall be written in Chinese and in English.  Both language
versions are equally authentic.  In the event of any discrepancy between the two
afore mentioned versions, the Chinese version shall prevail.

      This regulation shall be in four copies, one for each party  respectively,
one  for the  examination  and  approval  authority,  and  one for the  business
administration management department.

Article 66

      Other  matters  not  specialized  in  this  regulation  shall  be  handled
according  to the  provisions  of the  contract  of the  joint  venture,  to the
resolution by the board of directors and to the  provisions of relevant laws and
regulations in China.  In the event of any  discrepancy  between the contract of
the joint venture and this regulation, the contract shall prevail.

Article 67

      This regulation shall come in force upon the approval of the foreign trade
and economic cooperation  commission.  The amendment of this regulation shall be
approved by the same commission.

Article 68

      This regulation is signed in Ningbo,  Zhejiang of China, by the authorized
representatives of

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both parties on

Party A:                                            Party B:

Ningbo Minghua                                      IMP Inc.

Microelectronic Investment

Co. Ltd.


/s/ (sd ---)                                        /s/ (sd ---)

Legal representative:                               Legal representative:

Authorized representative:                          Authorized representative: