Source: http://www.justice.gov/atr/cases/f213400/213483.htm
Timestamp: 2014-09-01 21:00:35
Document Index: 376617606

Matched Legal Cases: ['§ 3742', '§ 3742', '§ 1', '§ 3561', '§ 8', '§ 3553', '§ 1', '§ 3571', '§ 3612', '§ 5', '§ 3572', '§ 8', '§ 3013', '§ 6', '§ 3571', '§ 8', '§ 1001', '§ 1503', '§ 1621', '§ 1623', '§ 401', '§ 1503', '§ 1001', '§ 1503', '§ 1621', '§ 1001', '§\n1623', '§ 1503', '§ 401', '§ 8']

Plea Agreement : U.S. v. Samsung Electronics Company, LTD. and Samsung Semiconductor, Inc.
formats: this web page (for browsing content) and PDF (comparable to original document formatting). To view the PDF you will need Acrobat Reader, which may be downloaded from the Adobe site. For an official signed copy, please contact the Antitrust Documents Group. NIALL E. LYNCH (State Bar No. 157959)	NATHANAEL M. COUSINS (State Bar No. 177944)
Attorneys for the United States	Stamp:
RICHARD W. WIEKINGCLERK, U.S. DISTRICT COURTNORTHERN DISTRICT OF CALIFORNIA
UNITED STATES OF AMERICA v. SAMSUNG ELECTRONICS COMPANY, LTD. and SAMSUNG SEMICONDUCTOR, INC.
| Case No. CR05-0643 PJH PLEA AGREEMENT
The United States of America and SAMSUNG ELECTRONICS COMPANY, LTD.,
("SEC") a corporation organized and existing under the laws of the Republic of Korea ("Korea"),
and SAMSUNG SEMICONDUCTOR, INC., ("SSI") a corporation organized and existing under
the laws of California, (hereinafter referred to collectively as "Defendants") hereby enter into the
as to SEC, a corporation organized and existing under the laws of Korea,
the Northern District of California;	to plead not guilty to any criminal charge brought against them;
to have a trial by jury, at which they would be presumed not guilty of the
offense beyond a reasonable doubt for them to be found guilty;
to appeal the imposition of sentence against them.	AGREEMENT TO PLEAD GUILTYAND WAIVE CERTAIN RIGHTS
2.	The Defendants knowingly and voluntarily waive the rights set out in Paragraph
1(b)-(g) above, including all jurisdictional defenses to the prosecution of this case, and agree
voluntarily to consent to the jurisdiction of the United States to prosecute this case against them
in the United States District Court for the Northern District of California. The Defendants also
knowingly and voluntarily waive the right to file any appeal, any collateral attack, or any other
writ or motion, including but not limited to an appeal under 18 U.S.C. § 3742, that challenge the
forth in 18 U.S.C. § 3742(b) and (c). Further, pursuant to Fed. R. Crim. P. 7(b), the Defendants
the United States District Court for the Northern District of California. The Information will
charge the Defendants with participating in a conspiracy in the United States and elsewhere to
suppress and eliminate competition by fixing the prices of Dynamic Random Access Memory
servers ("OEMs") from on or about April 1, 1999, to on or about June 15, 2002, in violation of
the Sherman Antitrust Act, 15 U.S.C. § 1. 3.	The Defendants, pursuant to the terms of this Plea Agreement, will plead guilty to
from on or about April 1, 1999, to on or about June 15, 2002. During the relevant period, SEC was a corporation organized and existing under the laws of Korea and SSI was a
corporation organized and existing under the laws of California. SEC has its
headquarters and principal place of business in Seoul, Korea. SSI has its headquarters
and principal place of business in San Jose, California.
computers, servers, and other devices. During the relevant period, the Defendants were
producers of DRAM and were engaged in the sale of DRAM in the United States and
elsewhere and employed more than 5000 employees. For purposes of this Plea
Agreement, "DRAM" means dynamic random access memory semiconductor devices and
modules, including synchronous dynamic random access memory ("SDRAM"), double
date rate dynamic random access memory ("DDR"), and Rambus dynamic random access
memory ("RDRAM") semiconductor devices and modules. During the relevant period,
Defendants' DRAM sales, directly affected by the conspiracy, to OEMs in the United
States totaled approximately $1.2 billion. During at least certain periods of time during the relevant period, the
Defendants, through certain officers and employees, participated in a conspiracy in the
United States and elsewhere among certain DRAM producers, the primary purpose of
which was to fix the price of DRAM sold to certain OEMs. The conspiracy directly
Computer Corporation, International Business Machines Corporation, Apple Computer
Inc., and Gateway, Inc. In furtherance of the conspiracy, the Defendants, through certain officers and employees, engaged in discussions and attended meetings with
representatives of certain other DRAM producers and sellers. During these discussions
and meetings, agreements were reached to fix the price of DRAM to be sold to certain
Defendants substantially added DRAM capacity and expanded output
during the relevant period. At certain times during the relevant period, DRAM prices
decreased significantly. Nevertheless, the Defendants and their coconspirators at times
reached agreements to limit the rate of price declines, which were achieved with varying
levels of effectiveness. At other periods, the Defendants and their coconspirators reached
agreements on price increases and were able to institute price increases on DRAM sales
to certain OEMs. Defendants invested in, promoted and marketed RDRAM during the
relevant period as a competitive product in the marketplace. The charged violation with
respect to RDRAM occurred at times during the period from January 1, 2001 to June 15,
2002. During the relevant period, DRAM sold by one or more of the conspirator
firms, and equipment and supplies necessary to the sale of DRAM, as well as payments
for DRAM, traveled in interstate and foreign commerce. The business activities of the
Defendants and their co-conspirators in connection with the sale of DRAM affected by
District of California. DRAM affected by this conspiracy was sold by one or more of the
conspirators to OEMs in this District.
5.	The Defendants understand that the statutory maximum penalty which may be
imposed against them upon conviction for a violation of Section One of the Sherman Antitrust
6.	In addition, the Defendants understand that: pursuant to 18 U.S.C. § 3561(c)(1), the Court may impose a term of
pursuant to § 8B1.1 of the United States Sentencing Guidelines
3663(a)(3), the Court may order them to pay restitution to the victims of the offense; and
Defendants to pay a $400 special assessment upon conviction for the charged crime.
7.	The Defendants understand that the Sentencing Guidelines are advisory, not
sentence. The Defendants understand that the Guidelines determinations will be made by the
Court by a preponderance of the evidence standard. The Defendants understand that although the
in 18 U.S.C. § 3553(a). Pursuant to U.S.S.G. § 1B1.8, the United States agrees that
self-incriminating information that the Defendants and their cooperating officers and employees
provide to the United States will not be used to increase the volume of affected commerce
attributable to the Defendants or in determining the Defendants' applicable Guidelines range,
8.	Pursuant to Fed. R. Crim. P. 11(c)(1)(C), the United States and Defendants agree
impose a sentence requiring payment to the United States of a single criminal fine of $300
million, pursuant to 18 U.S.C. § 3571(d), payable in installments as set forth below with interest
accruing under 18 U.S.C. § 3612(f)(1)-(2), with no term of probation ("the recommended
in formulating the Guidelines justifying a departure pursuant to U.S.S.G. § 5K2.0. The parties
agree not to seek or support any sentence outside of the Guidelines range nor any Guidelines
that the recommended sentence set forth in this Plea Agreement is reasonable. The United States and the Defendants agree to recommend, in the interest
of justice pursuant to 18 U.S.C. § 3572(d)(1) and U.S.S.G. § 8C3.2(b), that the fine be
paid in the following installments: within fifteen (15) days of imposition of sentence --
$50 million; at the one-year anniversary of imposition of sentence ("anniversary") -- $50
million (plus any accrued interest); at the two-year anniversary -- $50 million (plus any
accrued interest); at the three-year anniversary -- $50 million (plus any accrued interest);
at the four-year anniversary -- $50 million (plus any accrued interest); and at the five-year anniversary -- $50 million (plus any accrued interest); provided, however, that the
Defendants shall have the option at any time before the five-year anniversary of prepaying
the remaining balance then owing on the fine.
The Defendants understand that the Court will order them each to pay a
$400 special assessment, pursuant to 18 U.S.C. § 3013(a)(2)(B), in addition to any fine
The United States and the Defendants jointly submit that this Plea
Defendants at the plea and sentencing hearings, and the further disclosure described in
Paragraph 10, will provide sufficient information concerning the Defendants, the crime
charged in this case, and the Defendants' role in the crime to enable the meaningful
and Defendants agree to request jointly that the Court accept the Defendants' guilty plea
upon the record provided by the Defendants and the United States, under the provisions
of Fed. R. Crim. P. 32(c)(1)(A)(ii), U.S.S.G. § 6A1.1, and Rule 32-1(b) of the U.S.D.C.
from the charged offense is sufficient to justify the recommended sentence, pursuant to 18
U.S.C. § 3571(d). For purposes of this plea and sentencing only, the Defendants waive
their right to contest this calculation.
9.	The United States and the Defendants agree that the applicable Sentencing
Paragraph 8 above. Subject to the full and continuing cooperation of the Defendants, as
described in Paragraph 13 of this Plea Agreement, and prior to sentencing in this case, the United
States agrees that it will make a motion, pursuant to U.S.S.G. § 8C4.1, for a downward departure
from the Guidelines fine range and will request that the Court impose the recommended sentence
set out in Paragraph 8 of this Plea Agreement based on Defendants' substantial assistance to the
government in investigating and prosecuting violations of federal criminal law in the DRAM
industry. 10.	Subject to the ongoing, full, and truthful cooperation of the Defendants described
in Paragraph 13 of this Plea Agreement, and before sentencing in the case, the United States will
fully advise the Court and the Probation Office as to: (i) the fact, manner, and extent of the
Defendants' cooperation and their commitment to prospective cooperation with the United
States' investigation and prosecutions; (ii) all material facts relating to the Defendants'
involvement in the charged offense; and (iii) all other relevant conduct.
11.	The United States and the Defendants understand that the Court retains complete
and the Defendants agree that this Plea Agreement, except for Paragraph 11(b) below,
shall be rendered void. If the Court does not accept the recommended sentence, the Defendants
will be free to withdraw their guilty plea (Fed. R. Crim. P. 11(c)(5) and (d)). If the
Defendants withdraw their guilty plea, this Plea Agreement, the guilty plea, and any
guilty plea or this Plea Agreement, or made in the course of plea discussions with an
attorney for the government, shall not be admissible against the Defendants in any
criminal or civil proceeding, except as otherwise provided in Fed. R. Evid. 410. In
addition, the Defendants agree that if they withdraw their guilty plea pursuant to this
subparagraph of the Plea Agreement, the statute of limitations period for any offense
referred to in Paragraph 15 of this Plea Agreement will be tolled for the period between
the date of the signing of the Plea Agreement and the date the Defendants withdrew their
guilty plea or for a period of sixty (60) days after the date of the signing of the Plea
12.	In light of the civil class action cases filed against Defendants, including In re
DRAM Antitrust Litigation, No. M-02-1486PJH, MDL No. 1486, in the United States District
Court, Northern District of California, and DRAM Cases, No. CJC-03-004265, in the Superior
Court, San Francisco, California, and others which potentially provide for a recovery of a
DEFENDANTS' COOPERATION 13.	The Defendants and their subsidiaries that are engaged in the sale or production of
DRAM (collectively, "Related Entities") will cooperate fully and truthfully with the United
States in: (i) the prosecution of this case; (ii) the current federal investigation of violations of
federal antitrust and related criminal laws involving the production or sale of DRAM in the
United States and elsewhere; and (iii) any litigation or other proceedings relating to any such
investigation to which the United States is a party (collectively i-iii, "Federal Proceeding"). The
ongoing, full, and truthful cooperation of the Defendants shall include, but not be limited to:
custody, or control of the Defendants or any of their Related Entities, requested by the
United States in connection with any Federal Proceeding; and using their best efforts to secure the ongoing, full, and truthful
cooperation, as defined in Paragraph 14 of this Plea Agreement, of the current and former
directors, officers, and employees of the Defendants or any of their Related Entities as
may be requested by the United States  but excluding Young Bae (Y.B.) Rha, Il Ung
(I.U.) Kim, Young Hwan (Y.H.) Park, Sun Woo "Sunny" Lee, Young Woo Lee, Thomas
Quinn, and Yeongho Kang  including making these persons available upon reasonable
advance notice in the United States and at other mutually agreed-upon locations, at the
Defendants' expense, for interviews and the provision of testimony in grand jury, trial,
and other judicial proceedings in connection with any Federal Proceeding. 14.	The ongoing, full, and truthful cooperation of each person described in Paragraph
all non-privileged documents (with translations into English), including claimed personal
documents, and other materials, wherever located, requested by attorneys and agents of
the United States in connection with any Federal Proceeding;
making himself or herself available for interviews in the United States and
statements (18 U.S.C. § 1001) and obstruction of justice (18 U.S.C. § 1503); otherwise voluntarily providing the United States with any non-privileged
Federal Proceeding, upon reasonable advance notice, testifying in grand jury, trial, and
other judicial proceedings in the United States fully, truthfully, and under oath, subject to
the penalties of perjury (18 U.S.C. § 1621), making false statements or declarations in
grand jury or court proceedings (18 U.S.C. § 1623), contempt (18 U.S.C. §§ 401- 402),
and obstruction of justice (18 U.S.C. § 1503); and
criminal charges against the Defendants or any Related Entities for any act or offense committed
before the date of this Plea Agreement that was undertaken in furtherance of or related to an
antitrust conspiracy involving the production or sale of DRAM in the United States and
elsewhere, or undertaken in connection with any investigation of such a conspiracy. The
against any current or former director, officer, or employee of the Defendants or their
Related Entities for any act or offense committed before the date of this Plea Agreement
and while that person was acting as a director, officer, or employee of the Defendants or
their Related Entities that was undertaken in furtherance of or related to an antitrust
conspiracy involving the production or sale of DRAM in the United States and elsewhere,
or undertaken in connection with any investigation of such a conspiracy ("Relevant
Offense"), except that the protections granted in this Paragraph shall not apply to Y.B.
Rha, I.U. Kim, Y.H. Park, Sun Woo "Sunny" Lee, Young Woo Lee, Thomas Quinn, and
Yeongho Kang;
officer, or employee of the Defendants or their Related Entities may have information
counsel for the individual (with a copy to the undersigned counsel for the Defendants) or,
counsel for the Defendants;
(18 U.S.C. §§ 1001, 1623), or obstruction of justice (18 U.S.C. § 1503);	If any person who provides information to the United States under this
responsive to outstanding grand jury subpoenas issued to the Defendants and/or any of
their Related Entities. 17.	The United States agrees that when any person travels to the United States for
prevent such person from entering or departing the United States. This Paragraph does not apply
to an individual's commission of perjury (18 U.S.C. § 1621), making false statements (18 U.S.C.
§ 1001), making false statements or declarations in grand jury or court proceedings (18 U.S.C. §
1623), obstruction of justice (18 U.S.C. § 1503), or contempt (18 U.S.C. §§ 401- 402) in
18.	The Defendants understand that they may be subject to administrative action by
Defendants and their Related Entities, including the fact that the United States, pursuant to
U.S.S.G. § 8C4.1, moved for a downward departure from the Guidelines fine range, as matters
for that agency to consider before determining what administrative action, if any, to take. REPRESENTATION BY COUNSEL
19.	The Defendants have been represented by counsel and are fully satisfied that their
reviewed this Plea Agreement and acknowledge that counsel has advised them of the nature of
the charge, any possible defenses to the charge, and the nature and range of possible sentences.
20.	The Defendants' decision to enter into this Plea Agreement and to tender a plea of
States has made no promises or representations to the Defendants as to whether the Court will
21.	The Defendants agree that, should the United States determine in good faith,
during the period that any Federal Proceeding is pending, that the Defendants or any of their
Related Entities have failed to provide full and truthful cooperation, as described in Paragraph 13
of this Plea Agreement, or have otherwise violated any provision of this Plea Agreement, the
Defendants and their Related Entities shall be subject to prosecution for any federal crime of
relating to the investigation resulting in this Plea Agreement. The Defendants may seek Court
review of any determination made by the United States under this Paragraph to void any of its
obligations under the Plea Agreement. The Defendants and their Related Entities agree that, in
brings criminal charges against the Defendants or their Related Entities for any offense referred
to in Paragraph 15 of this Plea Agreement, the statute of limitations period for such offense will
be tolled for the period between the date of the signing of this Plea Agreement and six months
Agreement. 22.	The Defendants understand and agree that in any further prosecution
of them or their Related Entities resulting from the release of the United States from its
obligations under this Plea Agreement, because of the Defendants' or their Related Entities'
violation of the Plea Agreement, any documents, statements, information, testimony, or evidence
provided by them, their Related Entities, or their current or former directors, officers, or
employees of them or their Related Entities, to attorneys or agents of the United States, federal
grand juries, or courts, and any leads derived therefrom, may be used against them or their
Related Entities in any such further prosecution. In addition, the Defendants unconditionally
waive their right to challenge the use of such evidence in any such further prosecution,
and the Defendants concerning the disposition of the criminal charge in this case. This Plea
Defendants as evidenced by the Resolution of the Board of Directors or Committee authorized by
the Board of Directors of the Defendants attached to, and incorporated by reference in, this Plea
Agreement. 25.	The undersigned attorneys for the United States have been authorized
BY:_______________/s/________________ Samsung Electronics Company, Ltd.	250, 2-Ga, Taepyong	Jung-gu, Seoul 100-742	Republic of Korea	BY:_______________/s/________________ Samsung Semiconductor, Inc.	3655 North First Street	San Jose, CA 95134	BY:_______________/s/________________ Gary L. Halling	Sheppard, Mullin, Richter & Hampton LLP
BY:_______________/s/________________ David A. Donohoe
BY:_______________/s/________________ Mark C. Schechter
Fax: (202) 383-6610 BY:_______________/s/________________
1.	The execution, delivery and performance of the so-called Plea Agreement between Samsung
Electronics Co., Ltd. (the "Corporation") and the United States Department of Justice, in substantially
the form of the presented draft, as appended hereto as Exhibit 1, is hereby approved.
2.	Dahm Huh, CFO and Vice President of Samsung Semiconductor, Inc., is hereby authorized and
directed to execute and deliver, in the name and on behalf of the Corporation, the Plea Agreement.
3.	Dahm Huh may individually represent the Corporation at any hearing in order to waive any and all
rights of the Corporation referred to under section 2 of the Plea Agreement and to plead guilty in
accordance with the provisions of the Plea Agreement in the name and on behalf of the Corporation.
4.	Dahm Huh is hereby authorized and empowered to take individually any and all actions required
or appropriate in order to carry out the intent and purpose of the preceding resolution.
Dahm Huh Secretary
Resolutions of the Board of Directors October 11, 2005