exv10w4w1



 






Exhibit 10.4.1




[MIDA LETTERHEAD]



	 	Our Ref 	:	130/38320/1556/0010ACI

	 	Date 	:	21 July, 2005



Managing Director,

Komag USA (Malaysia) Sdn.

Bayan Lepas Free Trade Zone,

Phase III, 11900 Pulau Pinang




Dear Sir:




     Application
for:-




	 	(i)	 	Reducing the period of current tax exemption approved to the projects located
at Bayan Lepas Free Trade Zone, Phase III, Pulau Pinang (KM1) and Bayan Lepas
Free Trade Zone, Phase IV, Pulau Pinang (KM3)
	 
	 	(ii)	 	Extension of Tax Exemption for ten (10) years under Section 127, the Income Tax
Act, 1967 at Bayan Lepas Free Trade Zone, Phase III, Pulau Pinang
(KM1), Bayan Lepas
Free Trade Zone, Phase IV, Pulau Pinang (KM3), Sama Jaya Free Industrial Zone,
Kuching, Sarawak (KSO) and Pasir Gudang Industrial Zone,
Johor Darul Takzim
(KJO)
	 
	 	(iii)	 	Tax Exemption for ten (10) years to manufacture silicon ingots and
wafers for solar applications at Sama Jaya Free Industrial Zone, Kuching, Sarawak
(KSO)
	 	 





I refer to your application received on 6 June, 2005 regarding the above.





	2.	 	I wish to inform you that the Hon. Minister of Finance has
approved as follows:






	 	(i)	 	To reduce the period of current tax
exemption under Section 127, the Income Tax Act, 1967,
until 31 December 2006 for:-






	 	(a)	 	The
manufacture of thin-film magnetic disks using
Advanced Multi-layer Longitudinal Magnetic Recording
(LMR) technology and Perpendicular Multi-layer
Magnetic Recording (PMR)





 





LEMBAGA KEMAJUAN PERINDUSTRIAN MALAYSIA

(Malaysian Industrial Development Authority)

Blok 4, Plaza Sentral, Jalan Stesen Sentral 5, Kuala Lumpur Sentral, 50470 Kuala Lumpur,

P.O. Box 10618, 50720 Kuala Lumpur,

Telefon: 603-2267 3633, 603-2274 3633  Fax: 603-2274 7970

E-mail: mida@mida.gov.my

http://www.mida.gov.my




 









 








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	 	 	 	technology; including plated substrates, plated polished substrates, textured disks and
metalized glass disks at Bayan Lepas Free Trade Zone, Phase III, Pulau Pinang (KM1). (The
earlier tax exemption period for this project is from 1
July 2003 to 30 June 2011).
	 
	 	(b)	 	The
manufacture of thin-film magnetic disks, textured
disks and metalized glass disks at Bayan Lepas Free
Trade Zone, Phase IV, Pulau Pinang (KM3). The
earlier tax exemption period for this project is from
1 January 1999 to December 2008.






	 	(ii)	 	Extension of tax exemption for ten (10)
years under Section 127, the Income Tax Act, 1967 for manufacture
of the following products effective from 1
January, 2007:-






	 	(a)	 	Thin-film
magnetic disks using Advanced Multi-layer
Longitudinal Magnetic Recording (LMR) technology and
Perpendicular Multi-layer Magnetic Recording (PMR)
technology; including plated substrates, plated
polished substrates, textured disks and metalized
glass disks at Bayan Lepas Free Trade Zone, Phase III,
Pulau Pinang (KM1).
	 
	 	(b)	 	Thin-film
magnetic disks, textured disks and metalized glass
disks at Bayan Lepas Free Trade Zone, Phase IV, Pulau
Pinang (KMS).
	 
	 	(c)	 	Thin-film
magnetic disks, plated polished substrates and
aluminium substrates at Sama Jaya Free Industrial
Zone, Kuching, Sarawak (KSO).
	 
	 	(d)	 	Plated
polished substrates, plated substrates and aluminium
substrates at Pasir Gudang Industrial Zone, Johor
Darul Takzim (KJO).






	 	(iii)	 	Tax exemption for ten (10) years under
Section 127, the Income Tax Act, 1967 to manufacture silicon ingots
and wafers for solar applications at Sama Jaya Free Industrial
Zone, Kuching, Sarawak (KSO).





3. The approvals as mentioned in para 2(ii) and (iii) are
subject to the following conditions:





	 	(i)	 	Total additional investment in fixed
assets excluding land must be at least RM1,100 million within a
period of 3 years starting from 1 July, 2005 to 30 June, 2008 as
proposed.





 









 










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	 	(ii)	 	The percentage of R&D expenditure to gross sales should be at
least 1% on an annual basis.
	 
	 	(iii)	 	The percentage of science and
technical staff having degrees or diplomas with a minimum of 5
years working experience in related fields should comprise at
least 7% of the company’s total workforce; and
	 
	 	(iv)	 	The sales of plated substrates, plated
polished substrates and aluminium substrates to other companies
excluding those for use by Komag USA (Malaysia) Sdn. should not
exceed 20% of the total sales of thin-film magnetic disks, plated
substrates, plated polished substrates, textured disks, aluminium
substrates and metalized glass disks.





You are required to submit a report on the progress of the implementation of the project to MIDA.



4. The implementation of tax exemption approval under Section
127, the Income Tax Act, 1967 is in accordance with the guidelines under the
Promotion of Investment Act, 1986.



Thank you.




Yours sincerely,




/s/
Datuk R.
Karunakaran          

(DATUK R. KARUNAKARAN)

Director General

Malaysian Industrial Development Authority




	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 



 









 






	 	 	 	 	 



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	c.c.

	 	Secretary General
	 

	 	Ministry of International Trade and Industry
	 

	 	(Attention: Director, Industrial Division)
	 
	 	 
	 

	 	Secretary General
	 

	 	Ministry of Finance
	 

	 	(Attention: Secretary, Tax Division)
	 
	 	 
	 

	 	Director General
	 

	 	Inland Revenue Authority
	 
	 	 
	 

	 	General Manager
	 

	 	Penang Development Council
	 
	 	 
	 

	 	Permanent Secretary
	 

	 	Ministry of Industrial Development
	 

	 	Sarawak
	 
	 	 
	 

	 	General Manager
	 

	 	Johor Corporation
	 
	 	 
	 

	 	Director
	 

	 	MIDA Regional Office, Penang
	 
	 	 
	 

	 	Director
	 

	 	MIDA Regional Office, Sarawak
	 
	 	 
	 

	 	Director
	 

	 	MIDA Regional Office, Johor
	 
	 	 
	 

	 	Director
	 

	 	Industry Services Division, MIDA