**Exhibit 10.8**

 

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

 
| Toshiba  America Electronic Components, Inc. |        |
|---------------------------------------------------|-------------|
| 2950  Orchard Parkway, San Jose, CA 95131         | **TOSHIBA** |

 

**Design and Production Agreement**

**Amendment #1**

**Netlist Inc.**

 

This Amendment #1 (“Amendment”) to the ID ASIC Design and ProductionAgreement, dated July 31, 2008 (TAEC#’51N12402I25) (“Agreement”) isbetween Toshiba America Electronic Components, Inc., with a principalplace of business at 19900 MacArthur Boulevard, Suite 400, Irvine, CA92612 (“TAEC”) and Netlist Inc. with a place of business at 51 Discovery, Suite 150Irvine, CA 92618 (“Customer”) and sets out the terms and conditions under whichTAEC will design the product identified herein for Customer. This Amendment iseffective as of the date finally executed below (“Effective Date”).

 

**1.****            ****ProjectName**

 

**ID ASIC**

 

**2.****            ****NewSchedule**

 

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

 

**MajorProject Milestones**

 
| **Event** | ** ** | **Target Date/Completed** | ** ** |
|-----------|------------|--------------------------------|------------|
| **[***]** | ** ** | **[***]**                      | ** ** |
| **[***]** | ** ** | **[***]**                      | ** ** |
| **[***]** | ** ** | **[***]**                      | ** ** |
| **[***]** | ** ** | **[***]**                      | ** ** |
| **[***]** | ** ** | **[***]**                      | ** ** |
| **[***]** | ** ** | **[***]**                      | ** ** |
| **[***]** | ** ** | **[***]**                      | ** ** |
| **[***]** | ** ** | **[***]**                      | ** ** |
| **[***]** |       | TBD                            |       |
| **[***]** |       | TBD                            |       |
| **[***]** |       | TBD                            |       |
| **[***]** |       | TBD                            |       |

 

Production turnaround time: **[***]** workingweeks.

 
|   | **Toshiba Confidential** | TAEC#5IN12402I25A |
|--------|--------------------------|-------------------|

 

Schedule is provisional.

 

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**3.****            ****NewPackage and Die Size Option**

 

Theparties agree to delete the contents of Section 6 of the Agreement,Package and Die Size Option, and replace it with the following:

 
| **Package** | ** ** | **Ball Pitch** | ** ** | **Body Size** | ** ** | **Substrate  Layers** | ** ** | **Die Size** | ** ** |
|-------------|------------|---------------------|------------|--------------------|------------|-----------------------|------------|-------------------|------------|
| ** **  | ** ** | ** **          | ** ** | ** **         | ** ** | ** **            | ** ** | ** **        | ** ** |
| **[***]**   | ** ** | **[***]**           | ** ** | **[***]**          | ** ** | **[***]**             | ** ** | **[***]**         | ** ** |

 

**4.****            ****NewPrice**

 

Theparties agree to delete the contents of Section 8 of the Agreement, Price,and replace it with the following:

 
| First       | ** ** | **[***]** pieces: |   | US$**[***]** |   |
|-------------|------------|-------------------|--------|--------------|--------|
| Next        | ** ** | **[***]** pieces: |   | US$**[***]** |   |
| Next        | ** ** | **[***]** pieces: |   | US$**[***]** |   |
| After first | ** ** | **[***]** pieces: |   | US$**[***]** |   |

 

Changesin die size will affect the price quoted.

 

Theprices quoted herein for mass production are based on the assumption ofadequate yield.  TAEC reserves the rightto adjust pricing based on mutual agreement in the event that adequateyield figures, in TAEC’s reasonable opinion, are not achieved by the start ofmass production despite reasonable commercial efforts by both parties.  TAEC will provide Netlist with timely datasuch that Netlist can reasonably assess yield.

 

Pricesdo not include and are subject to any applicable sales tax.

 

**5.****            ****NewEngineering Sample and Risk Production Pricing**

 

Theparties agree to delete Section 13.3 of the Agreement.  The parties agree to delete the contents of Section 12of the Agreement, Extra Engineering Samples, and replace it with the following:

 

Allextra engineering samples and Risk Production parts shall be sold at US$**[***]**each (**[***]** the unitprice of US$**[***]**).

 

Allextra engineering samples are sold as Prototypes and are subject to, withoutlimitation, Articles 18.2 and 19.1 of the Design and Production Agreement Termsand Conditions (“Terms and Conditions”). All Risk Production parts are subject to, without limitation, Articles18.2 and 19.2 of the Terms and Conditions. TAEC reserves the right in its sole discretion to determine whether toaccept extra engineering sample or Risk Production orders.

 

----

 

**6.****            ****AdditionalNon-Recurring Engineering Charges and Payment Schedule**

 

Customeragrees to pay additional non-recurring engineering charges of US$**[***]** (“Additional NRE”) to TAEC for package and designsupport.  The Additional NRE will be dueand payable as follows.

 

1.             US$**[***]**upon**[***]**.

 

2.             US$**[***]**upon**[***]**together with test logs showingsuccessful completion of the mutually agreed-upon tests.

 

Forthe avoidance of doubt, the Additional NRE payable under this Amendment is inaddition to and does not replace the NRE payable under the Agreement.

 

**7.****            ****Cancellation**

 

7.1           If Customer wishes to discontinue the projectafter execution of this Amendment, then in addition to the provisions set forthin Section 10 of the Terms and Conditions, the Customer shall beresponsible to pay TAEC for the NRE charges as set forth below (“AdditionalCancellation Fee”), unless otherwise agreed in writing between TAEC and theCustomer:

 
| **Time**  | ** ** | **Additional Cancellation Fee** | ** ** |
|-----------|------------|-------------------------------------------|------------|
| **[***]** | ** ** | **[***]**% of  Additional NRE             | ** ** |
| **[***]** | ** ** | **[***]**% of  Additional NRE             | ** ** |
| **[***]** | ** ** | **[***]**% of  Additional NRE             | ** ** |

 

7.2           For the avoidance of doubt, NRE alreadyinvoiced to Customer per the milestones and NRE payment schedule set forthherein and in the DPA (“Paid NRE”) shall offset the Additional Cancellation Feeassessed in Article 7.1 above.  Tothe extent that the Paid NRE exceeds the Additional Cancellation Fee and theCancellation Fee set forth in Section 10 of the Terms and Conditions, TAECshall not charge further Additional Cancellation Fee; however, Paid NRE willnot be refunded upon cancellation of the design.

 

**8.****            ****AdditionalTerms**

 

8.1           **[***]**

 

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Exceptas modified herein, all other terms and conditions of the Agreement shall remainin full force and effect per their terms.

 
| **Toshiba  America Electronic Components, Inc.** | ** ** | **Netlist  Inc.**         |
|-------------------------------------------------------|------------|---------------------------|
| ** **                                            | ** ** | ** **                |
| ** **                                            | ** ** | ** **                |
| */s/  Takeshi Iwamoto*                                |       | */s/  Gail Itow*          |
| *Signature*                                           | * *   | *Signature*               |
| * *                                              | * *   | * *                  |
| * *                                              | * *   | * *                  |
| Takeshi  Iwamoto VP, Customer SoC & Foundry  |       | Gail  Itow, CFO           |
| Business  Unit                                        |       |                      |
| *Printed  name and title*                             |       | *Printed  name and title* |
| * *                                              |       | * *                  |
| * *                                              |       | * *                  |
| 1-28-10                                               |       | 1-28-10                   |
| *Date*                                                | * *   | *Date*                    |

 

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