Document:

<PAGE>
                                                                   EXHIBIT 10.14

                               ADVISORY AGREEMENT

     This Advisory Agreement (this "Agreement") is made and entered into as of
December 21, 2000 by and between AMI Holdings, Inc. ("Holdings"), AMI Spinco,
Inc. (the "Company" and together with Holdings, the "Companies") and Francisco
Partners GP, LLC ("Advisor"). Capitalized terms used but not defined herein
shall have the meanings assigned to such terms in the Agreement and Plan of
Merger and Recapitalization dated December 5, 2000 (the "Recapitalization
Agreement") by and among Japan Energy Corporation ("JEC"), GA-TEK Inc.,
Holdings, AMI Merger Company, Inc., the Company, TBW LLC ("TBW"), and
FP-McCartney, LLC.

     WHEREAS, the Companies desire to retain Advisor and Advisor desires to
perform for the Companies and/or their subsidiaries certain services;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to be
legally bound hereby, agree as follows:

     1. Term. This Agreement shall be in effect for an initial term of ten
(10) years commencing on the date hereof (the "Term"), and shall be
automatically extended thereafter on a year to year basis unless the Companies
provide or Advisor provides written notice of its or their desire to terminate
this Agreement to the other party 90 days prior to the expiration of the Term
or any extension thereof.

     2. Services. Advisor shall perform or cause to be performed such services
for the Companies and/or their subsidiaries as directed by such Company's
board of directors, which may include, without limitation, the following:

          (a) executive and management services;

          (b) identification, support and analysis of acquisitions and
dispositions by such Company or its subsidiaries;

          (c) support and analysis of financing alternatives, including,
without limitation, in connection with acquisitions, capital expenditures and
refinancing of existing indebtedness;

          (d) finance functions, including assistance in the preparation of
financial projections, and monitoring of compliance with financing agreements;

          (e) human resource functions, including searching and hiring of
executives; and

          (f) other services for such Company or its subsidiaries upon which
such Company's board of directors and Advisor agree.

<PAGE>
            Notwithstanding any provision in this Agreement to the contrary,
each of the parties hereto acknowledges and agrees that there are no minimum
levels of services required to be provided to the Companies pursuant to this
Agreement.

            3.    Advisory Fee. Subject to the terms and conditions herein,
payment for services rendered by Advisor and/or its affiliates incurred in
connection with the performance of services pursuant to this Agreement shall be
billed on an hourly basis for actual services rendered (it being agreed that no
minimum services levels shall be required), plus reasonable out-of-pocket
expenses incurred by Advisor and/or its affiliates commencing with the calendar
quarter ended March 31, 2001; provided that, if the Companies and their
subsidiaries are in compliance with the financial covenants contained in that
certain Credit Agreement dated as of December 21, 2000 (the "Credit Agreement")
between the Companies and AMI Merger Company, Inc., on one hand, and the Lenders
named therein together with Credit Suisse First Boston, as Administrative Agent
and Collateral Agent, on the other hand, in lieu of the aforementioned fees and
expenses, Advisor and/or its affiliates shall have the right to collect an
annual advisory fee (the "Advisory Fee"), the amount of which shall be the
greater of (i) $1,000,000 per annum (the "Flat Fee") or (ii) 0.3% per annum of
the annual consolidated revenue of the Companies and their subsidiaries
(determined on a trailing twelve month basis) (the "Percentage Fee"), plus
reasonable out-of-pocket expenses of Advisor and/or its affiliates.

                  (a)   Adjustment. In the event that the Advisory Fee paid in
any given year pursuant to this Section 3 exceeds the greater of the Flat Fee or
the Percentage Fee, the Advisor shall promptly repay to the Companies the
difference between the greater of the Flat Fee or the Percentage Fee and the
amount of the Advisory Fee actually paid by the Companies during that year. In
the event that the amount of the Advisory Fee paid by the Companies to the
Advisor in any given year is less than the greater of the Flat Fee or the
Percentage Fee, the Companies shall promptly pay the difference between the
amount of Advisory Fee actually paid to the Advisor and the greater of the Flat
Fee or the Percentage Fee.

                  (b)   Advisory Fees Paid to the Other Advisor. Notwithstanding
anything in this Section 3 to the contrary, the Advisory Fee paid to the Advisor
hereunder shall be same amount as the Advisory Fee paid to TBW pursuant to that
certain Advisory Agreement dated as of the date hereof between the Companies and
TBW, as the same may be amended, replaced or modified from time to time (the
"TBW Agreement").

                  (c)   Consent to Payment of Advisory Fee. No Advisory Fee may
be paid in any given year without the prior written consent of TBW, such consent
to be in TBW's reasonable discretion. The Companies acknowledge that they will
not pay any Advisory Fee without having received a copy of the written consent
of TBW. Notwithstanding the foregoing sentence, in any year that the Advisor
does not collect the Advisory Fee for any reason it shall nonetheless remain
entitled to collect hourly fees and expense reimbursements as described above.

                  (d)   Collection of Fee. Subject to the limitation described
in Section 3(c) above, the decision whether to collect any Advisory Fee in a
given year shall be in the Advisor's sole discretion. The Advisor's decision not
to collect an Advisory Fee in any given year shall not be construed to be a
waiver of the Advisor's right to collect an Advisory Fee in any future year.

                  (e)   Fee Calculation. All fees and expenses described in this
paragraph 3 shall be payable to Advisor or its designees on a quarterly basis in
advance (based on the parties' estimate of the amount of fees and expenses which
shall become due and payable for such quarter) commencing as of the date hereof.
For the purposes of this Section 3, compliance with the financial covenants
contained in the Credit Agreement shall be determined on a pro-forma basis and
shall include the deduction of the Advisory Fee, the deduction of any other fees
and expenses that may be payable to the Advisor hereunder and the deduction of
any fees that may be payable pursuant to the TBW Agreement

            4.    Transaction Fees. The Companies hereby agree to pay to Advisor
or its designee on the Closing Date (as defined in the Recapitalization
Agreement) upon the consummation of the transactions contemplated by the
Recapitalization Agreement a fee for services rendered in connection with the
structuring of the financing for the transactions contemplated by the
Recapitalization Agreement (the "Transactions") and certain other management
services in the amount of Six Million Dollars ($6,000,000), plus reasonable
out-of-pocket expenses. Such fees shall be payable to Advisor or its designees
by wire transfer to an account designated in writing by the Advisor.

            5.    Personnel. Advisor shall provide and devote to the performance
of this Agreement such partners, employees and agents of Advisor as Advisor
shall deem appropriate to the furnishing of the services required.

                                       2
<PAGE>
     6. Liability. Neither Advisor nor any other Indemnitee (as defined in
Section 7 below) shall be liable to any of the Companies or any of their
subsidiaries or affiliates for any loss, liability, damage or expense arising
out of or in connection with the performance of services contemplated by this
Agreement, unless such loss, liability, damage or expense shall be proven to
result directly from gross negligence, willful misconduct or bad faith on the
part of an Indemnitee acting within the scope of such person's employment or
authority. Advisor makes no representations or warranties, express or implied,
in respect of the services to be provided by Advisor or any of the other
Indemnitees. Except as Advisor may otherwise agree in writing after the date
hereof: (i) Advisor shall have the right to, and shall have no duty (contractual
or otherwise) not to, directly or indirectly: (A) engage in the same or similar
business activities or lines of business as any of the Companies or any of their
subsidiaries, including those competing with any of the Companies or any of
their subsidiaries and (B) do business with any client or customer of any of the
Companies or any of their subsidiaries; (ii) neither Advisor nor any officer,
director, employee, partner, affiliate or associated entity thereof shall be
liable to any of the Companies or any of their subsidiaries or affiliates for
breach of any duty (contractual or otherwise) by reason of any such activities
of or of such person's participation therein; and (iii) in the event that
Advisor acquires knowledge of a potential transaction or matter that may be a
corporate opportunity for the Companies or any of their subsidiaries, on the one
hand, and Advisor, on the other hand, or any other person, Advisor shall have no
duty (contractual or otherwise) to communicate or present such corporate
opportunity to the Companies or any of their subsidiaries and, notwithstanding
any provision of this Agreement to the contrary, shall not be liable to the
Companies or any of their affiliates for breach of any duty (collateral or
otherwise) by reasons of the fact that Advisor directly or indirectly pursues or
acquires such opportunity for itself, directs such opportunity to another
person, or does not present such opportunity to the Companies. In no event will
any of the parties hereto be liable to any other party hereto for any indirect,
special, incidental or consequential damages, including lost profits or savings,
whether or not such damages are foreseeable, or in respect of any liabilities
relating to any third party claims (whether based in contract, tort or
otherwise) other than the Claims (as defined in Section 7 below) relating to the
service to be provided by Advisor hereunder.

     7. Indemnity. Each of the Companies and their subsidiaries shall defend,
indemnify and hold harmless each of Advisor, its affiliates, members, partners,
employees and agents (collectively, the "Indemnitees") from and against any and
all loss, liability, damage or expenses arising from any claim by any person
with respect to, or in any way related to, the performance of services
contemplated by this Agreement (including attorneys' fees) (collectively,
"Claims") resulting from any act or omission of any of the Indemnitees, other
than for Claims which shall be proven to be the direct result of gross
negligence, bad faith or willful misconduct by an Indemnitee. Each of the
Companies and their subsidiaries shall defend at its own cost and expense any
and all suits or actions (just or unjust) which may be brought against such
Company, any of its subsidiaries or any of the Indemnitees or in which any of
the Indemnitees may be impleaded with others upon any Claims, or upon any
matter, directly or indirectly, related to or arising out of this Agreement or
the performance hereof by any of the Indemnitees, except that if such damage
shall be proven to be the direct result of gross negligence, bad faith or
willful misconduct by an Indemnitee, then Advisor shall reimburse the Companies
and their subsidiaries for the costs of defense and other costs incurred by the
Companies and their subsidiaries.

                                       3

<PAGE>
          8.   Notices. All notices hereunder shall be in writing and shall be
delivered personally or mailed by United States mail, postage prepaid, addressed
to the parties as follows:

               To the Companies as appropriate:

                    AMI Holdings, Inc.
                    c/o AMI Spinco, Inc.
                    16644 West Bernardo Drive, Suite 301
                    San Diego, CA 92127
                    Attention: Chief Executive Officer
                    Facsimile: 858.521.3777

               To Advisor:

                    Francisco Partners GP, LLC
                    c/o Francisco Partners, L.P.
                    Two Embarcadero Center
                    Suite 420
                    San Francisco, CA 94111
                    Attention: Gerry Morgan
                    Facsimile: 415.986.1320

          9.   Assignment. The Companies may not assign any obligations
hereunder to any other party without the prior written consent of Advisor (which
consent shall not be unreasonably withheld), and Advisor may not assign any
Advisor obligations hereunder to any other party without the prior written
consent of the Companies (which consent shall not be unreasonably withheld);
provided that Advisor may, without consent of the Companies, assign its rights
and obligations under this Agreement to any Permitted Transferee (as such term
is defined in the Shareholders Agreement dated December 21, 2000 among the
Company, FP-McCartney, LLC, the Advisor, JEC and certain other persons named
therein).

          10.  Successors. This Agreement and all the obligations and benefits
hereunder shall inure to the successors and assigns of the parties.

          11.  Counterparts. This Agreement may be executed and delivered by
each party hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original and all of which taken together shall
constitute but one and the same agreement.

          12.  Entire Agreement; Modification; Governing Law. The terms and
conditions hereof constitute the entire agreement between the parties hereto
with respect to the subject matter of this Agreement and supercede all previous
communications, either oral or written, representations or warranties of any
kind whatsoever, except as expressly set forth herein. No modifications of this
Agreement nor waiver of the terms or conditions thereof shall be binding upon
either party unless approved in writing by an authorized representative of such
party. This Agreement may not be amended in a manner materially adverse to the
Company and the Company may not waive any material provision of this Agreement
that is for its benefit unless a corresponding amendment is made to the TBW
Agreement or TBW's consent is

                                       4
<PAGE>
obtained. All issues concerning this Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without giving
effect to any choice of law or conflict of law provision or rule (whether of
the State of New York or any other jurisdiction) that would cause the
application of the law of any jurisdiction other than the State of New York.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       5
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Advisory Agreement as
of the date first written above.

                                        AMI HOLDINGS, INC.

                                        By:
                                           ------------------------------------

                                        Its:
                                            -----------------------------------

                                        AMI SPINCO, INC.

                                        By:
                                           ------------------------------------

                                        Its:
                                            -----------------------------------

                                        FRANCISCO PARTNERS GP, LLC

                                        By: /s/ Dipanjan Deb
                                           ------------------------------------

                                        Its:  Vice President
                                            -----------------------------------

                                       6<PAGE>

                                                                   Exhibit 10.19

                       Assignment and Assumption Agreement

This Assignment and Assumption Agreement is entered into between
STMicroelectronics NV, a corporation incorporated and existing under the laws of
the Netherlands ("ST") and AMI Semiconductor, Inc., a Delaware company ("AMI")
this 26th day of June 2002.

         WHEREAS, Pursuant to the terms and conditions of a Business Purchase
Agreement (the "BPA"), dated May 8, 2002 among AMI, ST, AMI Semiconductor
Belgium BVBA, a corporation incorporated and existing under the laws of Belgium
("BVBA") and Alcatel Microelectronics N.V., a Belgian company ("AME") (which
will become a party to the BPA on the Completion Date (as defined in the BPA)),
ST and AME are contemporaneously with the execution and delivery of this
Agreement selling to AMI and certain of its Affiliates the Mixed Signal Business
(the "MSB" as defined in the BPA) of AME.

         WHEREAS, pursuant to Section 3.l(j) of the BPA, ST is required to
assign Article 2 and Annex 1 and Annex 2 (the "Relevant Provisions") of that
certain Global Cooperation and Supply Agreement between ST and Alcatel, a French
societe anonyme ("Alcatel"), dated June 26, 2002, a copy of which is attached
hereto, (the "GSA").

NOW, THEREFORE, THE PARTIES HAVE AGREED AS FOLLOWS:

ST hereby assigns the Relevant Provisions of the GSA and all rights and
obligations thereunder to AMI and AMI accepts such assignment and assumes all
obligations under the Relevant Provisions of the GSA arising after the date
hereof. As a consequence, neither ST nor AME shall be liable to Alcatel and AMI
or its Affiliates for any liability, losses, damages, costs and expenses arising
out of or in connection with the Relevant Provisions arising after the date
hereof.

This Agreement shall be governed by the laws of the Republic of France.

STMICROELECTRONICS NV

By: /s/ Alain Dutheil
    ------------------------------
Name:  Alain Dutheil
Title: Corp. V.P.

AMI SEMICONDUCTOR, INC.

By: /s/ Christine King
    ------------------------------
Name: Christine King
Title: President & CEO

<PAGE>

The foregoing assignment is acknowledged and consented to by Alcatel, a French
societe anonyme

ALCATEL

By: /s/ Jean-Pierre Halbron
    -----------------------------
Name:  Jean-Pierre Halbron
Title: President

<PAGE>

C L I F F O R D                                         CLIFFORD CHANCE
                                                        SELAFA
C H A N C E                                             AVOCATS A LA COUR

                                                        112 AVENUE KLEBER
                                                        BP 163 TROCADERO
                                                        75770 PARIS CEDEX 16

                                                        TEL +33 (0)1 44 05 52 52
                                                        FAX +33 (0)1 44 05 52 00
                                                        PALAIS K112
                                                        www.cliffordchance.com

NOS REFERENCES              VOS REFERENCES              DATE

  PARIS-1/437112/01 S5339-PAR/00005-PAR                 26 juin 2002
LIGNE DIRECTE

For the attention of: AMI Semiconductor Inc.

Dear Sir,

At your request, I attach herewith copy of the article 2 of the Global
Cooperation and Supplies Agreement signed today between Alcatel and
STMicroelectronics NV, as well as copy of annexe 1 and annexe 2 of the same
agreement.

With best regards.

Yours faithfully,

/s/ Pierre Verkhovskoy
----------------------------
Pierre Vekhovskoy
Avocat a la Cour

<PAGE>

ARTICLE 2: Guaranty of supply and price

2.1      With respect to those products an exhaustive list of which is set forth
         in annex 1 and in annex 2 hereto, the Parties agree as follows:

         (i)      ST will secure for Alcatel and its Affiliated Companies the
                  manufacturing capability of the products listed in annex 1 and
                  annex 2;

         (ii)     ST will sell and deliver to Alcatel and/or its Affiliated
                  Companies, in accordance with Alcatel needs, the products
                  listed in annex 1 and in annex 2 during the Term of this
                  Agreement;

         (iii)    ST will not make any change to any products listed in annex 1
                  and in annex 2, which would affect the form, fit, or function
                  of such products, without the prior written consent of Alcatel
                  and/or its Affiliated Companies, which shall not be
                  unreasonably withheld or delayed.

         ST commits not to discontinue the products listed in annex 1 and in
         annex 2 for technologies lower or equal to one micron during the term
         of this Agreement. If at any time during the term of this Agreement, ST
         decides to discontinue any or all of said products/technologies, ST
         shall notify Alcatel and/or its Affiliated Companies, and Alcatel,
         and/or its Affiliated Companies, will then promptly provide ST with its
         forecast, which shall represent their firm commitment to purchase from
         ST such products during the remaining period until the end of this
         Agreement. Relevant quantities will be manufactured by ST, and stored
         by or for ST until the delivery term described below, at ST's costs and
         expenses, and will be sold and delivered by ST, and purchased by
         Alcatel, according to Alcatel (and/or its Affiliated Companies)
         purchase orders as will be placed from time to time during the term
         of this Agreement and for delivery no later than six (6) months after
         the termination date of this Agreement.

2.2      In case Alcatel and/or its Affiliated Companies reasonably requires
         technical modification to any products listed in annex 1 and in annex
         2, ST will use all reasonable efforts to perform such modification, at
         Alcatel (and/or its Affiliated Companies) costs.

2.3      ST will sell to Alcatel and/or the Affiliated Companies of Alcatel, and
         Alcatel and/or the Affiliated Companies of Alcatel will purchase, the
         products listed in annex 1 and annex 2 hereto at prices which will not
         exceed the ones given in annex 1 and annex 2.

2.4      If ST sells all or part of the assets and/or business of AME to any
         third party during the Term of this Agreement, then ST undertakes to
         obtain from such third party the same obligations as those set forth in
         this Article 2.

2.5      If ST sells all or part of the assets and/or business of AME to any
         third party during the term of this Agreement, then Alcatel undertakes
         to purchase, or cause its Affiliated Companies to purchase, (i)the
         products listed in annex 1 from that third party; and (ii) between 40%
         (included) and 60% (included) in aggregate value of such products
         listed in annex 2. The terms and conditions of those purchases shall be
         those of the volume purchase agreement ("VPA") signed between Alcatel
         and AME. Notwithstanding the provisions set forth in article 2.3 above,
         upon that third party's request, the prices listed in annexes 1 and 2
         may be reviewed, subject to an audit of such third party's costs to be
         made by or for Alcatel and upon mutual agreement between Alcatel and
         such third party.
<PAGE>

                                                                    CONFIDENTIAL

ANNEX 1

<TABLE>
<CAPTION>
              QEACS                                                                               GEOMETRY   MAXIMUM PRICE
TYPE          ITEM               DESCRIPTION          ALCATEL PART NUMBER       SUPPLIER P/N        TURN     FOR THE TERM      CUR
----         -------   -----------------------------  -------------------       -------------     --------   -------------     ---
<S>          <C>       <C>                            <C>                       <C>               <C>        <C>               <C>
SCIC               8   18PC/LMA9095/100POFP           1AB02838AAAA                                    0.70            7.20     EUR
SCIC              56   CTC3/LCA100008/6BPLCC          1AB03547AAAA              PCTCA-PCT-01          1.50            2.39     EUR
SCIC              60   IPCL/LMA9239/144POFP           1AB0353OABAA              PIPCA-PO-01           1.00            4.60     EUR
SCIC              64   ORC2/LCA100106/16OPOFP         1AB03958ABAA                                    1.00           22.40     EUR
SCIC              95   TRABI/LCA100106/144CPGA        1AB04782AAAA                                    1.00          108.07     USD
SCIC              96   SOHMOOEMQECOOERASIC (ANOREW)   1AB05235AAAA              PANDA-PO-01           1.00           29.23     USD
SCIC             134   AGDEC2/12025/120CPGA           1AB03957AAAA              PAGDA-PG-01           1.00           30.00     EUR
SSIC             142   WCOWFP S12                     1A00391OABAA              PSEPO-PQ-01           3.00            4.57     EUR
SSIC          TB:153   MBULIC-PDIL S12                1AB03544AAAA              PBTMP-PD-01         BICMOS            3.00     EUR
SCIC             159   SMFT-2/LCA100056/160POFP       1AB03463ACAA              PSFMA-P0-01           1.00            8.70     USD
SSIC             161   TCF-PDIL S12                   1A003531BAAA              PBTTC-PD-01           3.00            1.10     EUR
SSIC             162   TCF-PLCC S12                   1AB03531BBAA              PBTTC-PCT-01          3.00            1.10     EUR
SCIC             162   VTCC/LCA100135/16OPOFP         1AB04566AAAA              PVTCA-PO-01           1.00           17.90     USD
SCIC             173   EXTMPV2/100056/100CPGA         1AB02802BAAA              PEXTA-PG-01           1.00           73.36     EUR
SCIC             174   EXTDMV3/100056/84PLCC          1AB02868ACAA              PXTDB-PC-01           1.00           66.06     EVR
SCIC             190   DTSCA/LCA100106/132CPGA        1AB01323ABAA                                    1.00           37.20     USD
SSIC         LTB:198   DSP-PDIL S12                   1AB04087AAAA              PBTSI-PD-01           2.50            2.00     EUR
SSIC             216   DPTC-PDIL S12                  1AB03920AAAA              PBTOO-PD-01           2.40            2.25     EUR
SSIC             218   DPTC-PDIL S12                  1AB03920ABAA                                    2.40            2.25     EUR
SSIC             221   OBCI-PLCC S12                  1AB03909ABAA              PSEOB-PCT-01          2.40            5.10     EUR
SSIC             241   UCLK-PDIL S12                  1AB03917ABAA              PUCLA-PD-01           3.00            0.85     EUR
SCIC             242   FSX/6206/20PDIL                1AB00665AAAA                                    1.00            1.87     EVR
SCIC             243   SIP/621B/4OPDIL                1AB00666AAAA              PSIAB-PD-O1           1.00            1.74     EVR
SSIC             250   TMTC-272 PBGA                  1AB14098AAAA                                    0.35           60.00     EUR
SSIC             261   IPCU-PLCC S12                  1AB04093ABAA              PIPCV-PCT-01          2.50            5.00     EVR
SCIC             329   TGTRS/LCA100006/68PLCC         1AB06478AAAA              PTGTA-PCT-01          1.00            2.47     EUR
SSIC             330   UIC-PDIL ISDN                  1AB03393BAAA              PUICD52-PD-01         1.50            3.90     EUR
SSIC             331   UIC-PLCC ISDN                  1AB03393BBAA                                    1.50            3.90     EUR
SCIC             333   AGEZC/LCA100011/84PLCC         1AB04075AAAA              PAGZB-PCT-01          1.00            3.65     EUR
SSIC             353   MSRA-CLCC ISDN                 1AB03354ABAA              PMSRA-PCT-01          0.70            8.00     EUR
SCIC             356   IC-ASIC*GA*NICA                1AB08349ABAA                                                    7.95     EUR
SCIC             362   IC-ASIC*SC*ULE                 1A013391ABAA                                    0.40            2.50     EUR
SCIC          4/2450   IC-ASIC*SC*LETAL16L            1AB14134ABAA                                    0.35           14.75     EUR
SSIC             400   ISE16 1060                     1AB00956AFAA              PISEA-EQ-01           0.70           44.00     EUR
SSIC             410   EST S12BB                      1AB08471ABAA              PESTA-EQ-01           0.70           29.00     EUR
SCIC             467   CRYSTAL/63.59SMM/128MOFP       1AB03369AAAA              PCRYB-PQ-01           0.70            8.85     EUR
SCIC             469   IC-ASIC-FC*LCIA-2AO3           1AB10294ABAA              PLCIA-PQ-01           0.70            9.50     EUR
SCIC             474   CRCC3/17*45SMM/68PLCC          1AB04354AAAA              PCRCB-PC-01           0.70            2.65     EUR
SCIC             501   MSX/32SMM/40PDIL               1AB00960AAAA                                    1.00            4.16     EUR
SCIC             517   SIBC-B/52SMM/84PLCC            1AB00925BAAA              PSIBD-PCT-01          0.70            6.26     EVR
SCIC             518   ABSYS-B/52.8SMM/68PLCC         1AB00924BAAA              PABYB-PCT-01          0.70            6.06     EUR
SCIC             732   SR155R/LCA 100031/160POFP      1AB06875AAAA              PISRA-PO-01           1.00           20.90     EUR
SCIC             766   IC-ASIC*GA*JECKEL III          1AB07980AAAA              PJGCA-PCT-01          1.00           17.84     USD
SCIC             865   FSX/6206/44POFP                1AB00665ABAA              PFSXA-PQ-01           1.00            1.70     EUR
SSIC             866   SIP/6218/44POFP                1AB00666ABAA              PSIAA-PQ-01           1.00            1.74     EUR
SSIC             448   FICA                           1A0125180001                                    1.20            2.25     EUR
SCIC            1200   SRS/LCA100073/12OPOFP          1AB08481AAAA              PSRSA-PQ-01           1.00           13.45     EUR
SCIC            1255   BUSARD/LCA1O0015/1OOPOFP       1AB08847AAAA              PBUSA-PQ-01           1.00            4.59     EUR
SCIC            1260   CBS/37.4SMM/120POFP            1AB05684AAAA              PCBSA-PQT-01          1.00            8.49     EUR
SCIC            1261   DPI/47SMM/8OPOFP               1AB05135AAAA              PDPIB-PQ-01           1.20            5.13     EUR
SCIC            1273   AGCRM/300030/144POFP           1AB10741AAAA              PAGRA-PQ-01           0.60            6.00     EUR
SCIC            1290   DOPIIAI/LCA100008/68PLCC       1AB09549AAAA              PDOPB-PCT-01          1.00            2.41     EUR
SCIC            1292   DTSCA2/LCA100135/144PPQF       1AB01323ACAA              PDTSA-EQ-01           1.00           24.50     EUR
SCIC            1400   LARA/LCA300236/144PQFP         1AB10801AAAA              PLARA-PQ-01           0.50           33.50     EUR
SCIC            1403   BULLWINKLE2/LCA300/256BG       1AB09069ABAA              PBULA-PB-01           0.60           38.70     USD
SCIC            1700   NOP/LCA100182/160PQFP          1AB05562AAAA              PNOPA-PQ-01           1.00           26.52     USD
SCIC            1933   P2REV3/LCA100/160POFP          1AB03382ACAA                                    1.00           31.95     USD
SCIC            1941   MERLIN/LCA100135/208EQFP       1AB11414ABAA              PMELB-EQ-01           0.60           38.00     EUR
SCIC            1943   S2231PM/LCA10235/160EQFP       1AB04458ACAA              PCCTA-EQ-01           1.00           60.50     EUR
SCIC            1944   BSCX/LCB300/24000FP            1AB03062ACAA              PBSCA-DQ-01           0.60           20.09     EUR
SCIC            I946   RTC2/LCA100020/28PLCC          1AB04048ABAA              PRTCA-PC-01           1.00            5.50     EUR
SCIC            1947   NHC/LCA300036/64PQFP           1AB11883AAAA              PNHCA-PQ-01           0.60            7.68     EUR
SCIC            1948   NX64DC/..../68PLCC             1A806444ABAA                                    0.80           45.60     EUR
SCIC            1956   MSJCN/.../68PLCC               lAB03117AEAA              PMSKA-PCT-01          0.70            2.47     EUR
SCIC            1986   GMAN3/LCAl00/208POFP           1A011727ACAA                                    1.00            8.34     USD
SCIC            2012   ROLF/100040/12OPOFP            1AB07927ABAA              PROLA-PQ-01           1.00           16.19     EUR
SCIC            2013   MX2-34/LCA100084/144CPGA       1AB06104ACAA              PMUXU-PG-01           1.00           40.00     EUR
SCIC            2026   IC-ASIC*SC*ACBT2               1AB04070ABAA              PACTA-PQ-01           0.60           19.67     EUR
SCIC            2029   IC-ASlC*GA*AGUTR2              1AB04072ACAA              PAGAA90-01            1.00            9.32     EUR
SCIC            2031   IC.ASIC*GA*AGCRD2              1AB04072ACAA              PAGCA-PQ-01           1.00            9.25     EUR
SCIC            2035   IC-ASIC*GA*RGMT3               1AB05050ADAA              PRGMA-PQ-01           0.60            6.70     EUR
SCIC            2036   IC-ASIC*GA*PENELOPE            1AB05572AAAA              PPENA-EQ-01           1.00           29.75     USD
SCIC            2037   IC-ASIC*GA*ULYSSES             1AB05573AAAA              PULYA-EQ-01           1.00           33.17     USD
SCIC            2039   IC-ASIC*GA.TGILM2              1AB06476ABAA              PTGIA-PCT-01          0.60            4.87     EUR
SCIC            2040   IC-ASIC*GA*TGIEX2              1AB06477ABAA              PTGXA-PQ-01           0.60            6.55     EUR
SCIC            2042   IC.ASIC.GA.TRIMMER2A01         1AB06582ABAA              PTRIB-PCT-01          0.60            5.46     EUR
SCIC            2083   IC-ASIC*SC*RGLRH               1AB10600ABAA              PRGLA-PB-01           0.60           59.00     EUR
SCIC            2084   IC-ASIC*SC*RGTRl2              1AB10601ABAA              PRGIA-PO-01           0.50           40.80     EUR
SCIC            2093   IC-ASIC*SC*BART                1AB11022ABAA                                    0.50           28.35     USD
SCIC            2109   IC-ASlC*SC*BASE ASIC 2G        1AB12444ABAA                                    0.60            6.36     EUR
SCIC            2112   IC-ASIC*GA*BIC                 1AB12677AAAA              PBICB-PQ-01           0.60            6.27     EUR
SCIC            2123   IC-ASIC*SC*UBAC                1AB13247AAAA              PUBAA-PQ-01           0.50            7.00     EUR
SCIC            2136   IC-ASIC*SC*TRANS               1AB14007AAAA              PTANA-PQ-01           0.50            8.00     EUR
SCIC            2141   IC-ASIC*SC*WINDI               1AB14519AAAA              PWINA-PB-01           0.35           17.00     EUR
SCIC            2203   IC-ASIC*NINA                   1AB16146AAAA              TNIA                  0.25           31.00     EUR
SCIC            2204   IC-ASIC*S.MARIA                1AB16148AAAA              TSMA                  0.25           57.00     EUR
SCIC            2205   IC-ASIC*ELLEN                  1AB15785AAAA              ELLA                  0.35           15.20     EUR
SCIC            2315   IC.ASIC*SC*DILBERT2            1AB10812ACAA                                    0.50           24.00     USD
SCIC            2420   XBUS22                         1AB03967ADAA                                    1.00           24.50     EUR
SCIC            2421   AS0322                         1AB04076ABAA                                    1.00           39.50     EUR
SCIC            2422   HDL322                         1AB04078ABAA                                    1.00           39.50     EUR
SCIC            2426   TGBUS2                         1AB05974ACAA                                    0.80            5.85     EUR
SCIC            2436   LARA2                          1AB10801ABAA                                    0.60           36.80     USD
SCIC            2444   MR                             1AB13193ABAA                                    0.40            3.35     EUR
SCIC            2447   DGGMP/2                        1AB13728ABAA                                    0.60            9.47     EUR
SSIC            2454   BBIBS                          1AB16399AAAA                                    0.35           16.00     EUR
SCIC            2458   PBIB2A2                        1A803171ADAA                                    1.00            2.70     EUR
SCIC            2459   MSRA2A2                        1AB03354ACAA                                    1.50            8.00     EUR
SCIC            2504   MERCULES/CMOS/PBGA388          1AB16572AAAA                                    0.25           34.70     EUU
SCIC            2512   XMETRO3/CMOS/POFP1OO           1AB06652ABAA                                    1.00           20.00     EUR
SCIC            2522   MTC-20278PQ/QFP80              1AB136120004              MTC20278                             15.30     EUR
SCIC            2565   IC-ASIC*SC*IRIS                1AB16043AAAA                                    0.35            4.50     EUR
SCIC            2586   IC-ASIC*GA*DMX-2/34            1AB06104ABAA                                                   48.60     USD
SCIC                   DENAU                          1AB16154AAAA                                                  100.00     EUR
SCIC                   OSIRIS                                                   OSIA                                  3.65     EUR
SCIC                                                  1AB08117ADAA              MXDB                  0.50           60.80     USD
SCIC                   FILOMENA                                                                       0.35           18.50     EUR
SCIC                   PERSEO                                                                         0.18           25.36     EUR
SCIC                   CARBONERA                                                                      0.18           72.35     EUR
SCIC            2034   IC-ASIC*GA*TGRDP               1AB04931ABAA                                    1.00            3.78     EUR
</TABLE>
<PAGE>

                                  CONFIDENTIAL

ANNEX 2

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                                                                               MAXIMUM
           QEACS                                                                                 GEOMETRY   PRICE FOR THE
TYPE       ITEM            DESCRIPTION                      ALCATEL PART NUMBER   SUPPLIER P/N     (UM)          TERM        CUR
--------------------------------------------------------------------------------------------------------------------------------
<S>       <C>           <C>                                 <C>                   <C>            <C>        <C>              <C>
SCIC        25          TRAC/40SMM/68PLCC                    1AB03916BBAA         PTRAA-PCT-01    0,70           2,35        EUR
SCIC        48          MTR-B/LMA9020/22PDIL                 1AB03118ABAA         PMTRB-PD-01     1,50           0,80        EUR
SSIC       108          SWEL-PLCC S12                        1AB02973AAAA         PBTSX-PCT-01    0,70           4,30        EUR
SCIC       131          AGDEC2/12025/144PQFP                 1AB03957ABAA         PAGDA-PQ-01     1,00           4,93        EUR
SSIC       133          QUAP9-PLCC S12                       1AB03911CAAA         PQUAQ-PCT-01    0,70           3,60        EUR
SSIC       200          4CDSP-PLCC S12                       1AB04091BAAA         PBTFF-PCT-01    0,70           2,30        EUR
SSIC       420          RSLIC S12/ALCV                       1AB09316ABAA         PRSLA-PCT-01    dbmos 3        2,30        EUR
SSIC       421          HDSP  S12/ALCV                       1AB09314ABAA         PHDSA-PCT-01    0,50           4,40        EUR
SSIC       423          OASP  S12/ALCV                       1AB09315AAAA         POASA-PCT-01    0,70           4,25        EUR
SSIC       437          INTI  S12                            1AB11378ACAA         PINTA-PQ-01     0,50           5,35        EUR
SSIC       446          EFTI  S12                            1AB11377ACAA         PEFTA-PQ-01     0,50          27,00        EUR
SSIC       460          IC-ASIC-FC*HDSPE2                    1AB09314ACAA                         0,50           4,40        EUR
SCIC       470          CATS/28.35SMM/44PLCC                 1AB04464AAAA                         0,70           1,90        EUR
SSIC       564          OASP TQFP Litespan                   1AB09315ABAA         POASA-TQT-01    0,70           4,25        EUR
SSIC       565          RSLIC TQFP Litespan                  1AB09316ACAA         PRSLB-TQT-01    dbmos 3        2,30        EUR
SCIC       600          STLC54155/QFP48/BICMOS               1AB171070001                                        5,55        EUR
SCIC      2021          IC-ASIC*SC*CTCF                      1AB01859ACAA         PCTFA-PCT-01    0,70           1,13        EUR
SCIC      2025          IC-ASIC*SC*MSJ-C                     1AB03117AFAA         PMSJC-PCT-01    0,70           2,35        EUR
SCIC      2033          IC-ASIC*GA*RGTR2                     1AB04836ABAA         PRGTA-PCT-01    0,70           2,00        EUR
SCIC      2200          IC-ASIC*CIVETTA2                     1AB15654AAAA         CIVA            0,25           34,6        EUR
SCIC      2201          IC-ASIC*CRISTALLO 3.0D               1AB15080ABAA         CRIA            0,25          52,00        EUR
SCIC      2412          ASIC*SC*TRAC-2B20                    1AB03916BBAB                         0,70           2,35        EUR
SCIC      2457          MSJ-B                                1AB03117ADAA                         0,70           2,45        EUR
SCIC      2502          CIVETTA22B/CMOS/PBGA388 see 2000     1AB15654ABAA                         0,25           34,6        EUR
SCIC      2520          ESWA/QFP64/-20+85C                   1AB152790001         ESWA                           2,45        EUR
SCIC      2562          IC-ASIC*SC*CRISTALLO30D              1AB15080ACAA                         0,25          52,00        EUR
SCIC      2585          IC-ASIC*SC*SCILIAR                   1AB15080AEAA                         0,25          52,00        EUR
SSIC       272          ILC-44PLCC S12                              1AB03162BBAA                  1,50           4,05        EUR
SSIC       358          VCOS                                        1AB03918ABAA                  1,50           0,80        EUR
SCIC       375          IC-ASIC*SC*MARMOLADA2                       1AB15354AAAA                  0,25          62,50        EUR
SCIC      2506          MARMOLADA3/CMOS/TBGA576                     1AB15354ABAA                  0,25          62,50        EUR
           566          TMT-2A                                      1AB10326ADAA                  0,70          85,00        EUR
SCIC      2027          IC-ASIC*GA*AGMG12                           1AB04071ABAA                  1,00          27,80        EUR
SCIC      2028          IC-ASIC*GA*AGUTR2                           1AB04072ABAA                  1,00          34,75        EUR
SCIC      2030          IC-ASIC*GA*AGMG22                           1AB04073ABAA                  1,00           4,00        EUR
SCIC      2032          IC-ASIC*GA*AGLOC2                           1AB04077ABAA                  1,00           2,40        EUR
SCIC      2418          IC*ASIC SC,IGTRU                            1AB02074ACAA                  0,60           3,90        EUR
          1201          NAIC2/LCA100033/84PLCC                      1AB02120AAAA                  1,00           7,00        EUR
</TABLE>
<PAGE>

                       ASSIGNMENT AND ASSUMPTION AGREEMENT

This Assignment and Assumption Agreement is entered into between Alcatel
Microelectronics N.V., a Belgian company ("AME") and AMI Semiconductor, Inc., a
Delaware company ("AMI") this 26th day of June 2002.

         WHEREAS, Pursuant to the terms and conditions of a Business Purchase
Agreement (the "BPA"), dated May 8, 2002 among AMI, STMicroelectronics NV, a
corporation incorporated and existing under the laws of the Netherlands ("ST"),
AMI Semiconductor Belgium BVBA, a corporation incorporated and existing under
the laws of Belgium ("BVBA") and AME (which will become a party to the BPA on
the Completion Date (as defined in the BPA)), ST and AME are contemporaneously
with the execution and delivery of this Agreement selling to AMI and certain of
its Affiliates the Mixed Signal Business (the "MSB" as defined in the BPA) of
AME.

         WHEREAS, pursuant to Section 3.1(j)of the BPA, AME is required to
assign the Volume Purchase Agreement Number 2002-245 For Semiconductor
Customized Products between Alcatel, a French societe anonyme ("ALCATEL") and
AME effective as of 1 January 2002, a copy of which is attached hereto (the
"VPA").

NOW, THEREFORE, THE PARTIES HAVE AGREED AS FOLLOWS:

AME hereby assigns the VPA and all rights and obligations thereunder to AMI and
AMI accepts such assignment and assumes all obligations thereunder arising after
the date hereof. As a consequence, neither AME nor ST shall be liable to Alcatel
and AMI or its Affiliates for any liability, losses, damages, costs and expenses
arising out of or in connection with the VPA arising after the date hereof.

This Agreement shall be governed by the laws of the Republic of France.

ALCATEL MICROELECTRONICS N.V.

By: /s/ Y. DE BUSSCHOP
    ------------------

Name: Y. DE BUSSCHOP

Title: GENERAL COUNSEL

<PAGE>

AMI SEMICONDUCTOR, INC.

By: /s/ Christine King

Name: Christine King

Title: President & CEO

The foregoing assignment is acknowledged and consented to by Alcatel, a French
societe anonyme

ALCATEL

By: /s/ Thierry Paul-Dauphin
    ------------------------

Name: Thierry Paul-Dauphin

Title: CPS V.P.

<PAGE>

                            VOLUME PURCHASE AGREEMENT
                                NUMBER 2002-245
                      FOR SEMICONDUCTOR CUSTOMIZED PRODUCTS

This Agreement is made and entered into the FIRST day of January 2002.

BETWEEN

Alcatel, a French societe anonyme with registered office at 54 rue la Boetie,
75008 Paris, France (hereinafter "Alcatel") acting on behalf of its Subsidiaries
(hereinafter "Purchasers").

AND

Alcatel Microelectronics N.V. a company organized and existing under the laws of
Belgium with registered offices at Westerring 15, 9700 Oudenaarde Belgium
(hereinafter "AME")

Whereas Purchasers desire to place one or more purchase orders for the
Customized Products under the specific terms and conditions set forth by this
Volume Purchase Agreement (hereinafter "VPA").

NOW THEREFORE THE PARTIES AGREE AS FOLLOWS:

1.0     DEFINITIONS

     The following terms shall have the meaning set forth hereafter:

     1.1  "Purchaser" shall mean any Subsidiary of Alcatel, except AME.

     1.2  "Subsidiary" shall mean any company in which either party owns
          directly or indirectly more than fifty percent (50%) of the voting
          stock or equivalent voting rights.

     1.3  "Product" shall mean the semiconductor devices designed according to
          Purchaser specification and listed in Exhibit A attached hereto.

     1.4  "Foundry" shall mean a silicon wafer foundry company whose principal
          business is wafer supply starting from customer's own tooling.

2.0     SCOPE

<PAGE>

     2.1  This VPA shall apply to any purchase order placed by Purchaser with
     AME during the term as well as by the Purchaser's contract manufacturers
     and logistic service providers as shall be indicated by the Purchaser or
     Alcatel. This Agreement shall also apply to purchase orders already placed
     for delivery from 1st January until 31st December 2002.

     2.2  Quantities indicated in Exhibit A represent the forecast of
     Purchaser's requirements for delivery during 2002.

3.0     ISSUANCE OF ORDERS

     3.1  Commitments to purchase hereunder from AME shall only be made by means
          of purchase orders. All purchase orders shall refer to this VPA.
          Additional terms and conditions contained in any such purchase order
          shall be in addition to the terms and conditions of this VPA. In the
          event of and to the extent of any inconsistency, the terms and
          conditions of this VPA shall take precedence over any such additional
          terms.

     3.2  Individual purchase orders placed by any Purchaser shall be executed
          and performed under the sole responsibility and liability of such
          Purchaser. Alcatel shall not be held liable for the performance or
          non-performance or otherwise of any such purchase orders and shall not
          have any liability for damages resulting from any act or omission of a
          Purchaser.

     3.3  The minimum order value and quantity shipment shall be Two Thousand
          and Five hundred (2500) Euro or the equivalent amount in US dollars
          per line item or as specified in Exhibit A.

     3.4  AME will acknowledge or reject the Purchase Order within three (3)
          working days.

4.0     PRICE AND PAYMENT TERMS

        4.1  Price and Delivery Incoterms

        4.1.1 AME shall invoice Purchaser at the prices set forth in Exhibit A.
        The prices stated in Exhibit A are the prices for all Products. The
        prices set forth in Exhibit A are stated in Euro or in US dollars and
        are not applicable to samples (before Alcatel RO release). In case of
        substantial

<PAGE>

        change of the market conditions, AME and Alcatel agree to renegotiate
        the prices.

        AME shall deliver the Products according to the following Incoterms
        2000:

        (i)      DDP to the Purchasers' factories in EU

        (ii)     DDU to the Purchasers' factories in Europe non EU

        (iii)    FCA for deliveries to the Purchaser's factories in the rest of
                 the World.

        4.1.2 Purchaser will purchase the Products' from AME subject to being
        competitive in quality, lead time, delivery and technical performance.

     4.2 Payment terms

     4.2.1 Payments shall be made in Euro or in US Dollars, unless otherwise
     agreed by AME and Purchaser.

     In this later case, the exchange rule will be as follows: if during three
     (3) consecutive months the average exchange rate varies by more than five
     percent (5%) Purchaser shall notify AME before the 10th of the month of the
     variation (M). The new exchange rate will be implemented for the Purchase
     orders placed from the first day of the following month (M+1) and for
     deliveries starting the first day of M+2.

                  1 Euro = 0,895 USD

     4.2.2 Payment shall be made to AME within sixty (60) days after date of
     AME's invoice and any other required documents as specified in the
     applicable Purchase Order, unless otherwise locally agreed between AME and
     Purchaser.

5.0 DELIVERY - LEAD TIME - DELAY

          5.1 AME and Purchaser will work together to put in place Vendor
          Managed Inventory programs in order to meet Alcatel flexibility
          requirements and to reduce delivery lead time. Such programs will be
          defined and implemented between AME and Purchaser on a local basis,
          considering the following Alcatel specifications:

          - consignment Stock Rev 1.b dated May 25, 1998

          - JIT 48 hours Rev 1.b dated May 25, 1998

<PAGE>

          5.2 In case of foreseen delay in the delivery date as agreed between
          the Parties, AME shall immediately notify Purchaser and if delivery is
          delayed by more than five (5) working days beyond the agreed delivery
          date AME shall ship the delayed Products by express freight at AME's
          expenses on the sixth (6) day or at any other mutually agreed date. If
          AME does not deliver on the sixth (6) day or at any other mutually
          agreed delivery date, Purchaser may apply as liquidated damages a sum
          amounting to one percent (1%) of the amount of the delayed order per
          week of delay not to exceed five percent (5%) of the same.

          Further, beyond three (3) weeks of delay on the agreed delivery date,
          Purchaser may cancel the affected order at no charge or compensation
          whatsoever.

          5.3 Forecast:

          Forecast resolution is per week at least for the first eight (8)
          weeks. Beyond, these eight (8) weeks, forecast resolution may be
          given per month.

          Purchaser shall provide AME in average twice a month with an updated
          rolling forecast with a minimum of nine (9)months horizon. In case of
          absence of updated forecast, the previous forecast shall be
          re-conducted and automatically be validated as the current forecast.

          EDI shall be used with all of the Purchaser's factories, if available.

          5.4 Unless otherwise locally agreed, Purchaser and AME will implement
          either option 1 or 2 of the following delivery lead time schedule as
          shall be selected and notified by Purchaser. Failing any notification
          or local agreement option 1 will apply.

     -    option 1 : Make to Order Model

          Purchase order leadtime twelve (12) weeks. Purchaser liability is
          limited to accepted purchase orders. Reschedule is authorized in
          accordance with section 5.6 and order cancellations in accordance with
          section 5.5 without any liability on forecasted volumes.

     -    option 2 : Make to Forecast Model

          Manufacturing cycle time of twelve (12) weeks and purchase order
          lead-time of four(4) weeks subject to rescheduling as per section 5.6.

          Start of Manufacturing will be made in accordance with the forecasts
          for the next twelve (12) weeks.

          Purchaser liability is limited to accepted purchase orders and to
          twelve (12)weeks forecasted volumes as well as to the buffer stock if

<PAGE>

          any. Reschedule is authorized in accordance with section 5.6 and order
          and forecast cancellations in accordance with section 5.5. In
          addition, Purchaser and AME may agree upon the conditions of a buffer
          stock to be maintained by AME. Unless otherwise locally agreed such
          buffer stock shall be equal to Forty percent (40%) of the quantities
          of the next Eight (8) weeks, and will be recalculated each time a
          forecast is issued.

          The period during which AME will put in place the first buffer stock
          shall not exceed the manufacturing cycle time.

          Buffer Stock replenishment shall be in accordance with the
          manufacturing cycle time and will not exceed twelve (12) weeks.

     5.5  Cancellations

     -    Option 1 : Make to Order Model

               Purchaser may cancel a Purchase Order at any time, prior to the
               original agreed delivery date with a written notice to AME,
               subject to the payment of cancellation charges for finished
               Products, Product in assembly and Product on wafer state. For the
               purpose of this provision and considering a manufacturing cycle
               time of twelve weeks, the Products on wafer state shall mean
               those Products under manufacture in progress during the First to
               the Eighth week, the products in assembly between the end of the
               Eighth week until the end of the tenth week, the finished Product
               between the Tenth and the Twelfth week.

               The state of the Products will be determined after Purchaser's
               review and possible audit but cancellation charges will never
               exceed the following maximum percentage of price:

               -100 % of the price of the purchase order, for Finished Product.

               -70 % of the price of the purchase order, for Product in assembly

               -50 % of the price of the purchase order, for Product on wafer
               state.

     -    Option 2 : Make to Forecast Model

               Purchaser may cancel a purchase order at any time prior to the
               original agreed delivery date or the requested delivery date in
               case of forecast with a written notice to AME, subject to the
               payment of cancellation charges for finished Products, Product in
               assembly and Product on wafer state. For the purpose of this
               provision and considering a manufacturing cycle time of twelve
               weeks, the Products on wafer state shall mean those Products
               under manufacture in progress during the First to the Eighth
               week, the products in assembly between the end of the Eighth

<PAGE>

               week until the end of the tenth week, the finished Product
               between the Tenth and the Twelfth week.

               The state of the Products will be determined after Purchaser's
               review and possible audit but cancellation charges will never
               exceed the following maximum percentage of price :

               -100 % of the price of the purchase order or the price of the
               forecasted quantities as set forth in Exhibit A, for Finished
               Product

               -70 % of the price of the purchase order or the price of the
               forecasted quantities as set forth in Exhibit A, for Product in
               assembly

               -50 % of the price of the purchase order or the price of the
               forecasted quantities as set forth in Exhibit A, for Product on
               wafer state.

               Notwithstanding the above, Purchaser shall retain the right to
               decrease significantly or cancel the forecast without being
               liable for any cancellation charges if the decreased or cancelled
               quantities is to be delivered within the next six (6) months.

               AME shall immediately cease to incur expense against the
               cancelled purchase order or the cancelled forecast and in
               particular through the use of Buffer Stock if any upon agreement
               with Purchaser.

     5.6 Up to two (2) weeks before the agreed delivery date, Purchaser may
     reschedule orders without liability for any rescheduling charges, provided
     that two (2) reschedules only are authorized but only for a delivery at the
     latest at the end of the next calendar quarter but in no event later than
     December 31, 2002. Rescheduled orders cannot be canceled.

6.0 ACCEPTANCE

     6.1 All Products purchased hereunder are subject to Purchaser's acceptance
     procedure within thirty (30) days of delivery. AME will provide Purchaser
     with all reasonable assistance and information that it may require in
     performing its acceptance tests.

     6.2 Without prejudice to any other rights, if AME delivers Products which
     do not conform with the specification, Purchaser shall be entitled to
     reject the Products. All rejected Products will be returned to AME at AME's
     risk and expenses with Purchaser's written statement of rejection.

<PAGE>

     6.3 If Purchaser fails to notify AME of any non-conforming delivery,
     including but not limited to notification with respect to shortages,
     incorrect part or other inconsistencies within said thirty (30) days the
     Products will be deemed accepted.

7.0 WARRANTY

     7.1 AME warrants the Products against defective materials or workmanship
     for a period of one (1) year from the date of delivery. AME further
     warrants that the Products will conform to the Purchaser's specifications.
     The liability of AME under this warranty is limited at AME's option solely
     to repair the Product, to send replacement Product or, if none of these
     alternatives are feasible, to refund Purchaser the price actually paid for
     the Products returned to AME provided that the RMA procedure as described
     in Exhibit C is followed. AME shall warrant repaired or replaced Products
     under the same conditions as above for a period expiring with the initial
     warranty period or six (6) months after delivery of such repaired or
     replaced Products, whichever is later.

     7.2 AME shall propose a corrective action plan no later than within ten
     (10) days following receipt of Purchaser's notification. If AME's
     responsibility is proven and AME chooses to replace, AME shall replace the
     Products which are non conforming within five (5) working days of receipt
     of Purchaser's notification unless otherwise locally agreed.

8.0 FAILURE ANALYSIS

     At Purchaser's discretion, Purchaser shall request AME to perform failure
     analysis of defective Product. Purchaser shall provide samples of the
     defective Product together with supporting data detailing the nature of the
     defect. Purchaser failure analysis capability and traceability procedures
     shall be sufficient to enable him to define and implement effective
     corrective actions. AME shall perform initial testing of the rejected
     Products and shall notify Purchaser of the results of such testing. Should
     AME confirm Purchaser's complaint, then AME shall conduct a thorough
     analysis of the rejected Product and shall provide Purchaser with a
     complete final report detailing the root cause and the actions to be taken
     to remedy it.

9.0 QUALITY

     9.1 QUALITY CERTIFICATION

     AME is responsible for utilizing processes, in the production of the
     Products and services covered in this Agreement, that are certified to ISO
     9000.

<PAGE>

     9.2 QUALITY REQUIREMENTS

     AME is responsible for insuring that Products furnished hereunder by AME
     have undergone or have been subject to quality control activities and
     procedures, which may include performance measurements, testing, quality
     process reviews or inspections. The quality control system shall provide
     for the early and prompt detection of actual or potential material
     deficiencies, trends or conditions which could result in unsatisfactory
     quality, and for timely and effective corrective action.

     AME is responsible for insuring that its suppliers and subcontractors
     maintain a quality system that supports the ISO 9000 quality system
     requirements.

     Purchaser is entitled to conduct audits at AME's factories with, not less
     than, ten(l0) days prior written notice to AME. Types of audits that may be
     conducted include, but are not limited to, quality system audits, product
     specific audits, and process audits.

     Nothing contained herein will diminish AME's obligation to deliver
     defect-free material, warranty, or any other provision of this VPA.

     In addition, AME is responsible for complying with additional quality and
     environmental standard requirements as designated by any local agreements
     between AME and Purchaser.

     9.3 ENVIRONMENTAL REQUIREMENTS

     AME is responsible for complying with industry standards regarding
     environmental care as well as with the specific standards required in the
     region where AME operates. Purchaser reserves the right to invoke the
     requirement for ISO 14000 registration with a specified timeframe for
     compliance.

AME agrees to provide Purchaser with plans and status for meeting the Lead Free
European regulations. AME agrees to respond in a timely manner to requests from
Purchaser for information necessary to determine compliance of Purchaser's
product to Lead Free regulations.

10.0 VPA COORDINATION, BUSINESS REVIEWS

     10.1 The respective VPA coordinators for Alcatel and AME are:
     For Alcatel:                  For AME:

<PAGE>

     Name :  N. Chastel                             Name :  Lieven Van Lembergen
     Title : ASIC Working                           Title : Telecom Key
             Group Director                                 Accounts Manager

     10.2 The Purchaser's Sourcing and Contracting Managers (listed Exhibit B)
     and AME's local representatives will hold regular business reviews, at
     least one per calendar quarter. These reviews will include:

          10.2.1 REPORT ON ORDERS (prepared by Purchaser)

               Past months and cumulated from 1st January (quantities and
               values)

               - Per Product

               - Totals

               - Forecast for next nine (9) months, grouped per month

          10.2.2 REPORT ON DELIVERIES (prepared by AME)

               Past months and cumulated from 1st January (quantities and
               values)

               - Per Product

               - Totals

               - Expected delivery bottlenecks, for next 6-9 months

          This Business Review shall result in an agreed action plan in order to
          achieve the commitments agreed in this VPA.

11.0 CHANGE OF PRODUCTION - DISCONTINUANCE

     11.1 AME shall have the right to allocate the production of any Product
     between its various qualified production facilities and at any time to re-
     allocate such production to such other facilities provided that AME shall
     give a three (3) months prior notice to Purchaser of any such intent.
     However, AME shall not discontinue production in any existing qualified
     facility before nine (9) month after such notification or until the
     Purchaser has qualified the proposed new facility (manufacturing process
     and Product) whatever is earlier.

     11.2 In the event that AME decides to discontinue completely the
     manufacture of any Product, AME shall give Purchaser with a copy to the
     Alcatel coordinator twelve (12) months prior end-of-life notice of such
     discontinuance and accept orders from Purchaser within the twelve (12)
     months following the date of notice.

<PAGE>

     11.3 Purchaser will have the right, in case of AME deciding to discontinue
     completely the manufacture of a Product, to designate in writing another
     source for the production and supply of the Product. Subject to receipt by
     AME of a specific written request from Purchaser, AME will make available
     to Purchaser and/or a Foundry nominated in writing by Purchaser the
     following data :

     Technology documentation
     Functional documentation
     Test programs

     11.4 In the event that AME decides to change the form, fit, function,
     composition, or any process related to manufacture or procurement of any
     Product, AME shall give Alcatel a six (6) month prior written notice
     including all affected AME part numbers, regardless of sales history to
     Alcatel. AME shall accept orders, for the unchanged products from
     Purchasers within the six (6) months following the date of notice. In the
     event this change is not acceptable to Alcatel, Alcatel will notify AME and
     AME will be obligated to provide Alcatel with a replacement product.

     11.5 Any notices issued by AME relating to the above shall be delivered
     electronically (email) to :

     [Actual name of each commodity]
     Purchasing Manager
     Technical Commodity Manager
     Working Group Manager
     [WLM@alcatel.**] - for Alcatel Europe
     SPCN@usa.alcatel.com - for all of Alcatel USA
     ccec@cid.alcatel.com - for Alcatel Canada
     [and any others defined at the time]

     AME shall also provide notices to any others requesting same.

12.0 EPIDEMIC FAILURE

     12.1 If a Product develops an epidemic failure, AME shall investigate the
     cause of the failure and deliver to Purchaser a corrective action plan, no
     later than ten (10) days as of the date of receipt of Purchaser's written
     notice. The action plan shall indicate the time for the remedy of the
     defect.

<PAGE>

     Epidemic failure shall mean the occurrence of the same defect in any two
     percent (2%) of the Products within three (3) consecutive delivered lots
     assuming the Product is used in accordance with its specifications.

     12.2 Pending the correction of the epidemic failure, Purchaser shall be
     entitled (i) to postpone or cancel at no charge the delivery of any
     outstanding orders - and (ii) at its election either to return the
     defective Products already delivered as well as its stocks of Products for
     replacement free of charge or to be reimbursed of the same.

     AME shall collect at its own costs and expenses the defective Products at
     Purchaser's premises and shall deliver the new Products at Purchaser's
     premises.

     12.3 AME shall indemnify Purchaser for the direct costs and expenses
     incurred by Purchaser. AME 's liability shall be limited to five million
     (5.000.000) euro per damage event.

     12.4 In the event that the epidemic failure is of such nature as to affect
     all the Products delivered under manufacture or to be delivered under all
     the Purchase orders placed by Purchasers, then the rights granted to
     Purchaser shall be deemed to apply to all the Purchasers under this VPA
     irrespective of whether the epidemic failure has only developed in the
     Products included or delivered further to one Purchase order only.

13.0 Intellectual Property Indemnity

     AS long as AME will belong to the Alcatel Group, the General Relations
     Agreement which AME has entered into on January 1, 1997 will apply.

     In the event AME does no longer belong to the Alcatel Group, AME and
     Alcatel shall negotiate in good faith an intellectual property
     indemnification clause

14.0 LIMITATION OF LIABILITY

     To the maximum extent permitted by law and except as otherwise provided in
     this Agreement, under no circumstances and under no legal theory whether in
     tort (including negligence) contract or otherwise shall either AME or
     Purchaser be liable to the other for any special indirect, incidental or
     consequential damages incurred by the other resulting from or arising out
     of or in connection with a Purchase order or this VPA even if the other
     party has been informed of the possibility of these damages.

<PAGE>

15.0 FORCE MAJEURE

15.1 Neither AME nor Purchaser shall be liable for the nonperformance of any of
its obligations, if and to the extent only that such nonperformance is caused by
an event of force majeure, which means an even that is unforeseeable, which
could not be prevented and beyond the reasonable control of the Parties.

15.2 A party claiming a force majeure event shall give written notice to the
other party within seven (7) days from the date of occurrence thereof.

15.3 Delivery of all affected Products shall be made on a revised delivery date
(to be mutually agreed upon by and between the parties), that shall at least
take into account he delay incurred.

15.4 By reason solely of force majeure neither AME nor Purchaser shall (i) be
entitled to terminate an order; or (ii) shall have any claim for liquidated or
other damages against the other in respect of such delay in performance on
nonperformance.

16.0 CONFIDENTIALITY

       The terms and conditions of this VPA, including pricing, are confidential
       to both parties. Neither party shall disclose such confidential terms of
       this Agreement to the public or any third party without the prior written
       consent of the other.

       Prior to any exchange of confidential information AME and Purchaser shall
       enter into a Non Disclosure Agreement.

17.0 ASSIGNMENT

       This VPA may not be assigned by AME without the prior written consent of
       Alcatel.

18   GENERAL

       18.1 The laws of France shall govern this VPA. As long as AME will belong
            to the Alcatel group, any dispute arising out of this VPA or its
            implementation shall be submitted to the general management of
            Alcatel. In the event AME does no longer belongs to the Alcatel
            group, any dispute arising out of this VPA or its implementation and
            unless amicably settled between the parties, shall be submitted to
            the exclusive jurisdiction of the Tribunal de Commerce de Paris (
            Commercial Court of Paris), France. With

<PAGE>

            respect to the Purchase Orders, the laws of the Purchaser's country
            shall govern the purchase orders. Any and all disputes arising out
            of or in connection with a purchase order or its implementation,
            performance or interpretation, and unless amicably settled between
            AME and Purchaser, shall be submitted to the general management of
            Alcatel as long as AME belongs to the Alcatel group. In the event
            AME no longer belongs to the Alcatel group, such dispute shall be
            submitted to the exclusive jurisdiction of the courts of the
            Purchaser's country.

       18.2 No delay or failure by either party to act in the event of a breach
            or default hereunder shall be construed as a waiver of that or any
            subsequent breach or default of any provision of this VPA.

       18.3 If any part, term or provision of this VPA is declared unlawful or
            unenforceable, by judicial determination or performance, the
            remainder of this VPA shall remain in full force and effect.

       18.4 Any terms of this VPA which by their nature extend beyond expiration
            or termination of this VPA, shall remain in effect until fulfilled
            and shall bind the parties and their legal representatives,
            successors, heirs and assigns.

       18.5 The headings contained in this VPA are for reference purposes only
            and shall not affect in any way the meaning or interpretation of
            this VPA.

       18.6 AME and Purchaser shall comply, at their own expense, with all
            applicable federal, state and local laws, regulations and ordinances
            including, but not limited to, the regulations of the U.S.
            Government relating to export and re-export. Purchaser agrees that
            it is responsible for obtaining required government documents and
            approvals prior to export and re-export of any commodity, machine,
            software or technical data.
<PAGE>

         This Agreement has been executed in two (2) counterparts, each of which
         shall be considered an original, but all of which together shall
         constitute one and the same instrument.

For Alcatel:                                 For Alcatel Microelectronics N.V.:

Signature: /s/ Paul Jauphin T                Signature: /s/ JOHAN DANNEELS
           -------------------------                    ------------------------
Name:      Paul Jauphin T                    Name:      JOHAN DANNEELS
Title:     Vice President Components         Title:     CEO
Date:      21 March 2002.                    Date:      April 22, 2002
<PAGE>

ALCATEL Semicustom SCIC 2002

<TABLE>
<CAPTION>
                                               ESTIMATED
                                               QUANTITY
ITEM       ITEM DESC            BULKUP CODE      (KPCS)       AME PARTNU    PRICE     CURRENCY
<S>                             <C>            <C>           <C>            <C>       <C>
   8 IBPC/LMA9095/100PQFP       1AB02838AAAA     50.676      ............     7.2        euro
  25 TRAC/40SMM/68PLCC          1AB03916BBAA        7.6      PTRAA.PCT.01    2.35        euro
  48 MTR.B/LMA9020/22PDIL       1AB03118ABAA     129.52      PMTRB.PD.01      0.8        euro
  56 CTC3/LCA100008/68PLCC      1AB03547AAAA     19.158      PCTCA.PCT.01    2.39        euro
  60 IPCL/LMA9239/144PQFP       1AB03530ABAA     145.84      PIPCA.PQ.01      4.6        euro
  64 QRC2/LCA10010B/160PQFP     1AB03958ABAA      3.227      ............    22.4        euro
  96 ANDREW                     1AB05235AAAA         11                     29.23        USD
 131 AGDEC2/12025/144PQFP       1AB03957ABAA     30.632      PAGDA.PQ.01     4.93        euro
 134 AGDEC2/12025/l20CPGA       1AB03957AAAA        2.8      PAGDA.PG.01       30        euro
 173 EXTMPV2/100056/100CPGA     1AB02802BAAA        0.1      PEXTA.PG.O1    73.36        euro
 174 EXTDMV3/100056/84PLCC      1AB02866ACAA        0.1      PXTDB.PC.01    66.02        euro
 190 DTSCA                      1AB01323ABAA        3.8                      37.2        USD
 243 SIP/6218/40PDIL            1AB00666AAAA          9      PSIAB.PD.01     1.74        euro
 329 TGTRS/LCA100006/68PLCC     1AB06478AAAA     21.252      PTGTA.PCT.01    2.47        euro
 333 AGEZC/LCA100011/84PLCC     1AB04075AAAA     36.624      PAGZB.PCT.01    3 55        euro
 356 IC.ASIC*GA*NICA            1AB08349ABAA      3.809      ............    7.95        euro
 362 IC.ASIC*SC*ULE             1AB13301ABAA        230      ............     2.5        euro
 364 IC.ASIC*SC*LETAL 15L       1AB14134ABAA       5.34      ............   14.75        euro
 375 IC.ASlC*SC*MARMOLADA2      1AB15354AAAA      37.12      ............    62.5        euro
 467 CRYSTAL/63.59SMM/128MQ     1AB03369AAAA        120      PCRYB.PQ.01     8.85        euro
 470 CATS/28.35SMM/44PLCC       1AB04464AAAA        260      ............   1.900        euro
 474 CRCC3/17*45SMM/68PLCC      1AB04364AAAA     80.238      PCRCB.PC.01     2.65        euro
 517 SIBC.B/52SMM/64PLCC        1AB00925BAAA         27      PSIBD.PCT.01    6.26        euro
 518 ABSYS.B/52.8SMM/68PLCC     1AB00924BAAA         30      PABYB.PCT.01    6.06        euro
 600 STLC54155/QFP48/BICMOS     1AB171070001       31.5      ............    5.55        euro
 732 SR 155R/LCA100031/160PQF   1AB06875AAAA      0.352      PISRA.PQ.01     20.9        euro
 865 FSX/6206/44PQFP            1AB00665ABAA         38      PFSXA.PQ.01      1.7        euro
 866 SIP/8218/44PQFP            1AB00666ABAA         38      PSIAA.PQ.01     1.74        euro
 ??? MTC20172PC                 1AB125180001        260      FICA            2.25        euro
1200 SRS/LCA100073/120PQFP      1AB08451AAAA      22.92      PSRSA.PQ.01    13.45        euro
1201 NAIC2/LCA100033/84PLCC     1AB02120AAAA      1.216      PFLEC.PC.01                 ....
1255 BUSARO/LCA100015/100PQ     1AB08847AAAA         20      PBUSA.PQ.01     4.59        euro
1260 CBS/37.45MM/120PQFP        1AB05684AAAA          6      PCBSA.PQT.41    8.49        euro
1261 DPI/47SMM/80PQFP           1AB05135AAAA        2.5      PDPIB.PQ.01     5.13        euro
1273 AGCRM/300030/144PQFP       1AB10741AAAA      25.74      PAGRA.PQ.01      6.8        euro
1290 DOPI1A1/LCA100008/68PLC    1AB09544AAAA         10      PDOPB.PCT.01    2.41        euro
1292 DTSCA2/LCA100135/144PP     1ABO1323ACAA         14      PDTSA.EQ.01     24.5        euro
1400 LARA/LCA300236/144PQFP     1AB10801AAAA          1      PLARA.PQ.01     33.5        euro
1941 MERLIN/LCA100135/208EQF    1AB11414ABAA        1.2      PMELB.EQ.01       38        euro
1943 S2231PM/LCA10235/l80EQF    1AB04458ACAA      13.04      PCCTA.EQ.01     50.5        euro
1944 BSCX/LCB300/240OQFP        1AB03062ACAA        1.6      PBSCA.DQ.01    20.09        euro
1946 RTC2/LCA100020/28PLCC      1AB04048ABAA    170.271      PRTCA.PC.01      5.5        euro
1956 MSJCN/.../68PLCC           1AB03117AEAA         20      PMSKA.PCT.01    2.47        euro
1986 GMAN3                      1AB11727ACAA         12                      8.34        USD
2012 ROLF/100040/120PQFP        1AB07927ABAA        2.3      PROLA.PQ.01    15.19        euro
2013 MX2.34/LCA100084/144CPG    1AB06104ACAA        7.4      PMUXU.PG.01       48        euro
2021 IC.ASIC*SC*CTCF            1AB01859ACAA       40.3      PCTFA.PCT.01    1.13        euro
2025 IC.ASIC*SC*MSJ.C           1AB03117AFAA     53.876      PMSJC.PCT.01    2.35        euro
2026 IC.ASIC*SC*ACBT2           1AE04070ABAA        1.2      PACTA.PQ.01    19.67        euro
2027 IC.ASIC*GA*AGMG 12         1AB04071ABAA     3.9408      PAGNA.PG.01     27.8        euro
2028 IC.ASIC*GA*AGUTR2          1AB04072AEAA          0      PAGAA.PG.01    34.75        euro
2029 IC.ASIC*GA*AGUTR2          1AB04072ACAA        2.4      PAGAA.PG.01     9.32        euro
2030 IC.ASIC*GA*AGMG22          1AB04073ABAA      8.776      PAGMA.PCT.01       4        euro
2031 IC.ASIC*GA*AGCRD2          1AB04074ACAA       3.72      PAGCA.PQ.01     9.25        euro
2032 IC.ASIC*GA*AGLOC2          1AB04077ABAA         38      PAGLA.PCT.01     2.4        euro
2033 IC.ASIC*GA*RGTR2           1AB04836ABAA     49.088      PRGTA.PCT.01       2        euro
2035 IC.ASIC*GA*RGMT3           1AB05050ADAA     40.355      PRGMA.PQ.01      6.7        euro
2036 IC.ASIC*GA*PENELOPE        1AB05572AAAA        8.6                     29.75        USD
2037 IC.ASIC*GA*ULYSSE          1AB05573AAAA          3                     33.17        USD
</TABLE>

<TABLE>
<CAPTION>
ITEM       ITEM DESC                               COMMENT 1
<S>                              <C>
   8 IBPC/LMA9095/100PQFP
  25 TRAC/40SMM/68PLCC           see itemnr.2412
  48 MTR.B/LMA9020/22PDIL
  56 CTC3/LCA100008/68PLCC       See NOTE 1
  60 IPCL/LMA9239/144PQFP
  64 QRC2/LCA10010B/160PQFP      See NOTE1
  96 ANDREW
 131 AGDEC2/12025/144PQFP
 134 AGDEC2/12025/l20CPGA        See NOTE1.1 lot = 15K pcs, LTB
 173 EXTMPV2/100056/100CPGA      phase out LTB June 2002
 174 EXTDMV3/100056/84PLCC       phase out LTB June 2002
 190 DTSCA
 243 SIP/6218/40PDIL             phase OUI LTE June 2002
 329 TGTRS/LCA100006/68PLCC
 333 AGEZC/LCA100011/84PLCC
 356 IC.ASIC*GA*NICA             MOQ is 1 lot= BK pcs
 362 IC.ASIC*SC*ULE
 364 IC.ASIC*SC*LETAL 15L        MOQ is WIP available = 4.2 K pcs
 375 IC.ASlC*SC*MARMOLADA2
 467 CRYSTAL/63.59SMM/128MQ
 470 CATS/28.35SMM/44PLCC
 474 CRCC3/17*45SMM/68PLCC
 517 SIBC.B/52SMM/64PLCC         MOQ is 1 lot is 15K pcs
 518 ABSYS.B/52.8SMM/68PLCC      MOQ is 1 lot is 20K pcs
 600 STLC54155/QFP48/BICMOS
 732 SR 155R/LCA100031/160PQF    MOQ is 1 lot = 8.5K pcs. LTB
 865 FSX/6206/44PQFP             MOQ is 1 lot = 20K pcs
 866 SIP/8218/44PQFP             MOQ is 1 lot = 20K pcs
 ??? MTC20172PC
1200 SRS/LCA100073/120PQFP
1201 NAIC2/LCA100033/84PLCC
1255 BUSARO/LCA100015/100PQ      MOQ is 1 lot = 16K pcs
1260 CBS/37.45MM/120PQFP         WIP TO BE TAKEN IN 3 ORDERS
1261 DPI/47SMM/80PQFP            phase out LTB June 2002
1273 AGCRM/300030/144PQFP
1290 DOPI1A1/LCA100008/68PLC     phase out LTB June 2002
1292 DTSCA2/LCA100135/144PP
1400 LARA/LCA300236/144PQFP      See NOTE 1
1941 MERLIN/LCA100135/208EQF     See NOTE1. MOQ = 600 pcs
1943 S2231PM/LCA10235/l80EQF
1944 BSCX/LCB300/240OQFP         MOQ is 1 lot = 2K pcs
1946 RTC2/LCA100020/28PLCC
1956 MSJCN/.../68PLCC            MOQ is 1 lot = 2.5K pcs
1986 GMAN3
2012 ROLF/100040/120PQFP         See NOTE 1. MOQ = 600 pcs
2013 MX2.34/LCA100084/144CPG
2021 IC.ASIC*SC*CTCF
2025 IC.ASIC*SC*MSJ.C
2026 IC.ASIC*SC*ACBT2            MOQ is 1 lot = 6K pcs
2027 IC.ASIC*GA*AGMG 12          we can confirm 2001 price if MOQ is 1 lot is = 6K pcs
2028 IC.ASIC*GA*AGUTR2           MOQ is 1 lot = 9K pcs
2029 IC.ASIC*GA*AGUTR2           See NOTE1. 1 lot = 9K pcs
2030 IC.ASIC*GA*AGMG22           See NOTE1. 1 lot = 18K pcs
2031 IC.ASIC*GA*AGCRD2           See NOTE1. 1 lot = 8K pcs
2032 IC.ASIC*GA*AGLOC2           See NOTE1. 1 lot = 25K pcs
2033 IC.ASIC*GA*RGTR2
2035 IC.ASIC*GA*RGMT3
2036 IC.ASIC*GA*PENELOPE
2037 IC.ASIC*GA*ULYSSE
</TABLE>

<TABLE>
<CAPTION>
ITEM       ITEM DESC                TOTALS         COMMENT 2
<S>                               <C>         <C>
   8 IBPC/LMA9095/100PQFP           364.87
  25 TRAC/40SMM/68PLCC               17.86
  48 MTR.B/LMA9020/22PDIL           103.62
  56 CTC3/LCA100008/68PLCC           45.79    2.39 if MOQ = 1 lot
  60 IPCL/LMA9239/144PQFP           670.66
  64 QRC2/LCA10010B/160PQFP          72.26
  96 ANDREW                         321.53
 131 AGDEC2/12025/144PQFP           151.02
 134 AGDEC2/12025/l20CPGA            84.00    old price 20,03 euro, MOQ OK after depl. Of stock 3K
 173 EXTMPV2/100056/100CPGA           7.34
 174 EXTDMV3/100056/84PLCC            6.60
 190 DTSCA                          141.36
 243 SIP/6218/40PDIL                 15.66
 329 TGTRS/LCA100006/68PLCC          52.49
 333 AGEZC/LCA100011/84PLCC         130.02
 356 IC.ASIC*GA*NICA                 30.28
 362 IC.ASIC*SC*ULE                 575.00
 364 IC.ASIC*SC*LETAL 15L            78.77    split in 2 orders, OK
 375 IC.ASlC*SC*MARMOLADA2        2,320.00
 467 CRYSTAL/63.59SMM/128MQ       1,062.00
 470 CATS/28.35SMM/44PLCC           494.00
 474 CRCC3/17*45SMM/68PLCC          212.63
 517 SIBC.B/52SMM/64PLCC            169.02
 518 ABSYS.B/52.8SMM/68PLCC         181.80
 600 STLC54155/QFP48/BICMOS         174.83
 732 SR 155R/LCA100031/160PQF         7.36
 865 FSX/6206/44PQFP                 64.80
 866 SIP/8218/44PQFP                 66.12
 ??? MTC20172PC                     585.00
1200 SRS/LCA100073/120PQFP          308.27
1201 NAIC2/LCA100033/84PLCC           0.00
1255 BUSARO/LCA100015/100PQ          91.80
1260 CBS/37.45MM/120PQFP             50.94              MOQ = 2K pcs
1261 DPI/47SMM/80PQFP                12.83
1273 AGCRM/300030/144PQFP           175.03
1290 DOPI1A1/LCA100008/68PLC         24.10
1292 DTSCA2/LCA100135/144PP         343.00
1400 LARA/LCA300236/144PQFP          33.50    NEW QUANTITY  1K, ok agreed
1941 MERLIN/LCA100135/208EQF         45.60    old price with MOQ after stock depl.
1943 S2231PM/LCA10235/l80EQF        658.52
1944 BSCX/LCB300/240OQFP             32.14    price agreed, moq = 2K pcs
1946 RTC2/LCA100020/28PLCC          936.49
1956 MSJCN/.../68PLCC                49.40
1986 GMAN3                          100.08
2012 ROLF/100040/120PQFP             34.94    old price, stock depl. And later MOQ 1 lot
2013 MX2.34/LCA100084/144CPG        355.20
2021 IC.ASIC*SC*CTCF                 45.54
2025 IC.ASIC*SC*MSJ.C               126.61
2026 IC.ASIC*SC*ACBT2                23.60    price agreed, moq not yet
2027 IC.ASIC*GA*AGMG 12             109.55
2028 IC.ASIC*GA*AGUTR2                0.00    LTBuy
2029 IC.ASIC*GA*AGUTR2               22.37    old price, stock depl. And later MOQ 1 lot
2030 IC.ASIC*GA*AGMG22               35.10    4 euro, after stock depl.
2031 IC.ASIC*GA*AGCRD2               34.41    9.25 euro with stock depl. extra 9,25
2032 IC.ASIC*GA*AGLOC2               91.20    old price 2,4/MOQ agreed after 9K stock depl., moq in del.
2033 IC.ASIC*GA*RGTR2                98.17
2035 IC.ASIC*GA*RGMT3               270.39
2036 IC.ASIC*GA*PENELOPE            255.85
2037 IC.ASIC*GA*ULYSSE               99.51
</TABLE>
<PAGE>

                              VPA 2002 - Exhibit A

<TABLE>
<S>                            <C>           <C>                    <C>    <C>   <C>
2039  IC-ASIC*GA*TGILM2        lAB06476ABAA     3.956 PTGIA-PCT-01   4.87  euro  MOQ is 1 lot = 12K pcs, 4K MOQ accepted first order
2040  IC-ASIC*GA*TGIEX2        1AB06477ABAA    16.152 PTGXA-PQ-01    6.55  euro  MOQ is = 1 lot is 10K pcs
2042  IC-ASIC*GA*TRIMMER2A01   1AB06582ABAA       1.6 PTRIB-PCT-01   5.46  euro  phase out LTB june 2002
2083  IC-ASIC*SC*RGLRH         lAB10600ABAA       6.6 PRGLA-PB-01      59  euro
2084  IC-ASIC*SC*RGTRI2        lAB1060lABAA      4.32 PRGIA-PQ-01    40.8  euro  MOQ = 1 lot = 4K pcs
2093  IC-ASIC*SC*BART          1AB11022ABAA       1.8               28.35  USD
2109  IC-ASIC*SC*BASE ASIC 2G  lAB12444ABAA        13 BSIA           5.35  euro
2112  IC-ASIC*GA*BIC           lAB12677AAAA        11 PBICB-PQ-01    6.27  euro  phase out LTB june 2002
2123  IC-ASIC*SC*UBAC          1AB13247AAAA        43 PUBAA-PQ-01       7  euro
2136  IC-ASIC*SC*TRANS         1AB14007AAAA        35 PTANA-PQ-01       8  euro
2141  IC-ASIC*SC*WINDI         1AB14519AAAA        12 PWINA-PB-01      17  euro
2200  IC-ASIC*CIVETTA2         1AB15654AAAA      8.25 CIVA           34.6  euro
2201  IC-ASIC*CRISTALLO 3.0D   1AB15080ABAA       120 CRIA             52  euro
2203  IC-ASIC*NINA             lAB16146AAAA         1 TNIA             31  euro
2204  IC-ASIC*S.MARIA          lAB16146AAAA         1 TSMA             57  euro
2205  IC-ASIC*ELLEN            1AB15785AAAA         5 ELLA           15.2  euro
2315  IC-ASIC*SC*DILBERT2      lAB10812ACAA        13                  24  USD
2412  ASIC*SC*TRAC-2B2O        lAB03916BBAB  145.3376 ............   2.35  euro2
2418  IGTRU                    lAB02074ACAA   27.9504 ............    3.9  euro
2420  XBUS22                   1AB03967ADAA    31.452 ............   24.5  euro
2421  ASO322                   1AB04076ABAA       0.9 ............     59  euro  See NOTE l.1 lot = 9K pcs
2422  HDL322                   lAB04078ABAA       0.9 ............     59  euro  See NOTE 1.1 lot = 9K pcs
2426  TGBUS2                   1AB05974ACAA       8.5 ............   5.85  euro  MOQ is 1 lot = 8,5K pcs
2436  LARA2                    1AB10801ABAA       2.3                36.6  USD
2444  MR                       lABl3193ABAA      1400 ............   3.35  euro
2447  DGGMP/2                  1AB13728ABAA      3.72 ............   9.47  euro
2457  MSJ-B                    lAB03117ADAA     0.252 ............   2.45  euro
2458  PBIB2A2                  lAB0317lADAA        26 ............    2.7  euro
2459  MSRA2A2                  lAB03354ACAA     7.292 ............      8  euro
2502  CIVETTA22B/CMOS/PBGA3    lAB15654ABAA     34.54 ............   34.6  euro2
2504  HERCULES/CMOS/PBGA38     lAB16572AAAA         1 ............   34.7  euro
2506  MARMOLADA3/CMOS/TBGA     lAB15354ABAA       5.8 ............   62.5  euro
2512  XMETRO3/CMOS/PQFP100     1AB06652ABAA       1.3 ............     20  euro  MOQ is 1 lot
2520  ESWA/QFP64/-20+85C       1AB152790001  144.1944 ESWA           2.45  euro
2522  MTC-20278PO/QFP80        lAB136120004    26.112 MTC20278       15.3  euro
2562  IC-ASIC*SC*CRlSTALLO30D  1AB15080ACAA     46.75 ............     52  euro
2565  IC-ASIC*SC*IRIS          lAB16043AAAA        15 ............    4.5  euro
2585  IC-ASIC*SC*SCILIAR       1AB15080AEAA       0.5 ............     52  euro
2586  IC-ASIC*GA*DMX-2/34      lAB06104ABAA         1 ............     48  euro
      IC-ASIC*GA*BBIBS (BIBA)  lAB16399AAAA        60                  16  euro
w     OSIA                                          1                3.65  euro
w     DENALI                                      2.5                 100  USD
</TABLE>

<TABLE>
<S>                             <C>        <C>
2039  IC-ASIC*GA*TGILM2             19.27
2040  IC-ASIC*GA*TGIEX2            105.80
2042  IC-ASIC*GA*TRIMMER2A01         8.74
2083  IC-ASIC*SC*RGLRH             389.40
2084  IC-ASIC*SC*RGTRI2            176.26
2093  IC-ASIC*SC*BART               51.03
2109  IC-ASIC*SC*BASE ASIC 2G       69.55
2112  IC-ASIC*GA*BIC                68.97
2123  IC-ASIC*SC*UBAC              301.00
2136  IC-ASIC*SC*TRANS             280.00
2141  IC-ASIC*SC*WINDI             204.00
2200  IC-ASIC*CIVETTA2             285.45
2201  IC-ASIC*CRISTALLO 3.0D     6,240.00
2203  IC-ASIC*NINA                  31.00
2204  IC-ASIC*S.MARIA               57.00
2205  IC-ASIC*ELLEN                 76.00
2315  IC-ASIC*SC*DILBERT2          312.00
2412  ASIC*SC*TRAC-2B2O            341.54
2418  IGTRU                        109.01
2420  XBUS22                       770.57  24.5 for old version, agreed
2421  ASO322                        53.10  old price 400 pcs, after LBO
2422  HDL322                        53.10  old price all stock
2426  TGBUS2                        49.73
2436  LARA2                         84.64
2444  MR                         4,690.00
2447  DGGMP/2                       35.23
2457  MSJ-B                          0.62
2458  PBIB2A2                       70.20
2459  MSRA2A2                       56.34
2502  CIVETTA22B/CMOS/PBGA3      1,195.06
2504  HERCULES/CMOS/PBGA38          34.70
2506  MARMOLADA3/CMOS/TBGA         362.50
2512  XMETRO3/CMOS/PQFP100          26.00
2520  ESWA/QFP64/-20+85C           353.28
2522  MTC-20278PO/QFP80            399.51
2562  IC-ASIC*SC*CRlSTALLO30D    2,431.00
2565  IC-ASIC*SC*IRIS               67.50  3.3 on second half, closed
2585  IC-ASIC*SC*SCILIAR            26.00
2586  IC-ASIC*GA*DMX-2/34           48.00
      IC-ASIC*GA*BBIBS (BIBA)      960.00  agreed, 16 first half, 13.75 second half
w     OSIA                           3.65
w     DENALI                       250.00

                                33.819.59
</TABLE>

NOTE 1:

2001 price applies for the pieces in stock.

After the stock depletion: if moq = l lot = 1 order is respected, 2001 price
                            will be applied
                           if MOQ is not respected, 2002 price will be applied
<PAGE>

                                                              VPA 2002-EXHIBIT A

ALCATEL CLSI 2002
-----------------

                                    7. QUOTE

<TABLE>
<CAPTION>
                                               AME
                                               2002                                AME
                                           ESTIMATED QTY                          2002
                                               KPCS                               PRICE                            2002
ITEM    DESCRIPTION     PART NUMBER             TAM                                EUR                            REMARKS
----    -----------    --------------      -------------      ----------------------------------------------      -------
<S>     <C>            <C>                 <C>                <C>                                                 <C>
0108    SWEL           1AB 02973 AAAA           67.4           4.3                                                   290
0133    QUAP9.PLCC     1AB 03911 CAAA          170.7           3.6                                                   615
0142    POCO.PQFP      1AB 03910 ABAA           72.7          4.57                                                   332
0153    MBLIC          1AB 03544 AAAA           60.6             3 LTBuy 31.01.02                                    182
0161    TCF.PDIL       1AB 03531 BAAA            0.0               LTBuy                                               0
0162    TCF.PLCC       1AB 03531 BBAA           24.0          1.10 MOQ = 25K pcs is confirmed!!                       26
0198    DSP            1AB 04087 AAAA            7.5          2.00 LTBuy 31.01.02                                     15
0200    4CDSP          1AB 04091 BAAA          498.0           2.3                                                  1145
0216    DPTC.PDIL      1AB 03920 AAAA           13.7          2.25 See NOTE1. 1LOT is 10K pcsmixed PLCC-PDIL          31
0218    DPTC.PLCC      1AB 03920 ABAA           18.4          2.25 See NOTE1. lLOT is 10K pcsmixed PLCC-PDIL          41
0221    OBCII PLCC     1AB 03909 ABAA          132.6           5.1                                                   676
0241    UCLK           1AB 03917 AAAA           71.0          0.85 See NOTE1. 1 LOT is 32K pcs                        60
0261    IPCU.PLCC      1AB 04093 ABAA            0.0             5 See NOTE1. 1 LOT is 6K pcs                          0
0272    ILC.44PLCC     1AB 03162 BBAA          104.9             4                                                   419
0330    UIC.PDIL       1AB 03393 BAAA           30.5           3.9 Ltbuy DONE                                        119
0331    UIC.PLCC       1AB 03393 BBAA            0.0               Ltbuy DONE                                          0
0353    MSRA           1AB 03354 ABAA            6.3          8.00 See NOTE1. 1 LOT is 4K pcs                         50
0356    VCOS           1AB 03918 AA-BA         200.8          0.84                                                   169
0420    RSLIC          1AB 09316 ABAA         1141.8           2.3                                                  2626
0421    HOSP           1AB 09314 ABAA           56.0           4.4                                                   246
0423    OASP           1AB 09315 AAAA          165.2          4.25                                                   702
0437    INTI           1AB 11378 ACAA          161.9          5.35                                                   866
0446    EFTI           1AB 11377 ACAA            5.0            27                                                   135
0448    FICA           1AB 12518 0001            0.0          2.25                                                     0
0460    HDSP           1AB 09314 ACAA           68.9           4.4                                                   303
0469    LCIA.2A01      1AB 10294 ABAA           31.9           9.5                                                   303
0564    OASP           1AB 09315 ABAA          205.4          4.25                                                   873
0565    RSLIC          1AB 09316 ACAA         1027.5           2.3                                                  2363
                                                                                                                   12590
</TABLE>

NOTE 1 :
2001 price applies for the pieces in stock.
After the stock depletion :          if moq = 1lot= 1 order is respected ,2001
                                     price will be applied
                                     If MOQ is not respected, 2002 price will be
                                     applied
<PAGE>

                                    EXHIBIT B

                 ALCATEL ASIC SOURCING AND CONTRACTING MANAGERS

ALCATEL Bell NV :                                G. Lenaerts
Antwerp (Belgium)

ALCATEL Bell NV for CID:                         K. Van Elshocht
Antwerp (Belgium)

ALCATEL CIT:                                     N. Chastel
Velizy (France)

ALCATEL Business Systems for END:                J-C. Parchemin
Brest (France)

ALCATEL SEL AG :                                 M. Griesser
Stuttgart (Germany)

ALCATEL ESPANA:                                  J. Fernandez
Madrid (Spain)

ALCATEL SUBMARINE NETWORKS LTD :
Greenwich (UK)                                   I. Badawi

ALCATEL ITALIA SPA :                             A. Giovannetti
Vimercate (Italy)

ALCATEL USA INC.:                                T. Duncan
Plano (USA)

ALCATEL Internetworking :                        R. Baldwin
Calabasas (USA)

<PAGE>

                                    EXHIBIT C

                          RETURN MATERIAL INSTRUCTIONS

INITIAL INSPECTION / PRODUCT TESTING

         1.   Purchaser shall notify AME in writing within thirty (30) days upon
              discovering Products do not conform to Specifications. The
              parties shall mutually agree whether Product should be returned to
              AME, made available for AME inspection at Purchaser or another
              site, or returned to AME or another site.

         2.   In the event Product is to be returned, Product must be returned
              with part number and quantity well marked. AME shall provide
              Purchaser with a Return Material Authorisation (RMA).

         3.   Parts returned will be inspected by AME Quality Engineering.
              Quality Engineering will reject parts that have been damaged due
              to improper shipping unless the original packaging was not conform
              to specifications or agreement

         4.   Products must be accompanied by a fully completed return form.
              Failure to have such return form shall result in the Product being
              returned to Purchaser and transportation cost shall be invoiced to
              Purchaser.

         5.   Return Products must comply with the packing and shipping
              conditions of the original material (i.e. antistatic and moisture
              precautions)

         6.   All authorised return Products must arrive via the Goods Received
              Department at Westerring 15-Oudenaarde-Belgium.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]