**Exhibit 10.8**

 

**CERTAIN INFORMATION (INDICATED BY “[***]”)IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES ANDEXCHANGE COMMISSION.  CONFIDENTIALTREATMENT HAS BEEN 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 Production Agreement, datedJuly 31, 2008 (TAEC#’51N12402I25) (“Agreement”) is between Toshiba AmericaElectronic Components, Inc., with a principal place of business at 19900MacArthur Boulevard, Suite 400, Irvine, CA 92612 (“TAEC”)and Netlist Inc. with a place of business at 51Discovery, Suite 150 Irvine, CA 92618 (“Customer”) and sets out the termsand conditions under which TAEC will design theproduct identified herein for Customer. This Amendment is effective as of thedate finally executed below (“Effective Date”).

 

**1.****            ****Project Name**

 

**ID ASIC**

 

**2.****            ****New Schedule**

 

The parties agree todelete the contents of Section 4 of the Agreement, Schedule, and replaceit with the following:

 

**MajorProject Milestones**

 
| **Event**                                  | ** ** | **Target Date/Completed** |
|--------------------------------------------|------------|---------------------------|
| Development PO  Released                   | ** ** | **[***]**                 |
| Preliminary  Feasibility Study             | ** ** | **[***]**                 |
| Design Decision                            | ** ** | **[***]**                 |
| Design  Initiation                         | ** ** | **[***]**                 |
| Package  Selection Finalized               | ** ** | **[***]**                 |
| Early Database  for Pipecleaning           | ** ** | **[***]**                 |
| Final Database  (functionally correct)     | ** ** | **[***]**                 |
| Tapeout - Second Signoff (GDSII  transfer) | ** ** | **[***]**                 |
| Delivery of  Prototypes                    |       | TBD                       |
| System compliance  phase - start           |       | TBD                       |
| System  compliance phase - complete        |       | TBD                       |
| 1st Risk Production shipment          |       | TBD                       |

 

Production turnaround time: 16 working weeks.

 

**Toshiba Confidential**

 

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Schedule is provisional.

 

**3.****            ****New Package and Die Size Option**

 

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

 

**[***]**

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

 

**4.****            ****New Price**

 

The parties agree to deletethe contents of Section 8 of the Agreement, Price, and replace it with thefollowing:

 
| First       |   | 10M pieces: |   | US$**[***]** |
|-------------|--------|-------------|--------|--------------|
| Next        |   | 20M pieces: |   | US$**[***]** |
| Next        |   | 20M pieces: |   | US$**[***]** |
| After first |   | 50M pieces: |   | US$**[***]** |

 

Changesin die size will affect the price quoted.

 

Theprices quoted herein for mass production are based on the assumption ofadequate yield.  TAECreserves the right to adjust pricing based on mutual agreement in theevent that adequate yield figures, in TAEC’sreasonable opinion, are not achieved by the start of mass production despitereasonable commercial efforts by both parties. TAEC will provide Netlist with timely data such that Netlistcan reasonably assess yield.

 

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

 

**5.****            ****New Engineering Sample and RiskProduction Pricing**

 

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

 

Allextra engineering samples and Risk Production parts shall be sold at US$**[***]each**(2X the unit price of US$**[***]**).

 

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 whetherto accept extra engineering sample or Risk Production orders.

 

**6.****            ****Additional Non-Recurring EngineeringCharges and Payment Schedule**

 

Customer agrees to payadditional non-recurring engineering charges of US$**[***]** (“Additional NRE”) to TAEC for package and design support.  The Additional NREwill be due and payable as follows.

 

1.             US$**[***]**uponTapeout.

 

2.             US$**[***]**uponDelivery of Prototypes together with test logs showing successful completion ofthe mutually agreed-upon tests.

 

For the avoidance ofdoubt, the Additional NRE payable under thisAmendment is in addition to and does not replace the NREpayable under the Agreement.

 

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

 

## 7.1           If Customer wishes to discontinue the project afterexecution of this Amendment, then in addition to the provisions set forth in Section 10of the Terms and Conditions, the Customer shall be responsible to pay TAEC for the NRE charges as setforth below (“Additional Cancellation Fee”), unless otherwise agreed in writingbetween TAEC and the Customer:

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

 

## 7.2           For the avoidance of doubt, NREalready invoiced to Customer per the milestones and NREpayment schedule set forth herein and in the DPA (“PaidNRE”) shall offset the Additional Cancellation Feeassessed in Article 7.1 above.  Tothe extent that the Paid NRE exceeds the AdditionalCancellation Fee and the Cancellation Fee set forth in Section 10 of theTerms and Conditions, TAEC shall not charge furtherAdditional Cancellation Fee; however, Paid NRE willnot be refunded upon cancellation of the design.

##  

**8.****            ****Additional Terms**

 

## 8.1           **[***]**

##  

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Exceptas modified herein, all other terms and conditions of the Agreement shallremain in 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 Business Unit |       | Gail Itow, CFO            |
| *Printed  name and title*                                          | * *   | *Printed  name and title* |
| * *                                                           | * *   | * *                  |
| 1-28-10                                                            |       | 1-28-10                   |
| *Date*                                                             |       | *Date*                    |

 

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