Document:

Basic Agreement dated September 7, 1998

 Exhibit 4.15 
 BASIC AGREEMENT 
 (Reference PSI/BA/210898) 
 For the backend processing of semiconductor devices 
 Between 
 PSi Technologies, Inc. 
 Electronics Avenue, 
 FTI Complex, Taguig, 
 Metro Manila, Philippines. 
 -hereinafter referred to as “Supplier”-

 and 
 Siemens
Aktiengesellschaft, Berlin and Munchen 
 Federal Republic of Germany 
 -hereinafter referred to as “Siemens”- 
 Article 1- Definitions 
  

	1.1	“Contract Products” shall mean Devices processed by Supplier according to the Processing Specification and packed according to the Packing Specification.

  

	1.2	“Devices” shall mean semiconductor devices defined in an Individual Agreement delivered by Siemens or its Subsidiaries for processing by Supplier.

  

	1.3	“Effective Date” shall mean the date on which this Agreement enters into force. 

  

	1.4	“Equipment” shall mean machinery and testing facilities suitable for the processing of Devices which may be consigned from Siemens to Supplier. 

 

	1.5	“Packing Specification” shall mean the specification according to which the Contract products shall be packaged by Supplier. The Packing Specification shall be attached to
the respective Individual Agreement. 

  

	1.6	“Processing Specification” shall mean the specification for processing of Devices as well as specific quality requirements agreed upon in written form between the Parties.
For each type of Devices or a family of devices a Processing Specification shall be agreed be agreed upon between the Parties. The Processing Specification shall be attached to the Individual Agreement dealing with the respective Devices.

	1.7	“Requirements for Quality Assurance” shall mean the quality requirements for processing of Devices attached to the Individual Agreement including any future updates
or modifications thereof. 

  

	1.8	“Siemens Information” shall mean all such technical Information as well as know-how and software (which are given orally, in writing or in other tangible forms) as
necessary for the processing of devices and available at Siemens , which technical information and know-how Siemens will submit to Supplier according to the provisions of this Agreement. 

  

	1.9	“Special Tooling” shall mean Siemens specific tools suitable for the processing of devices which may be consigned from Siemens to Supplier. 

  

	1.10	“Subsidiary” shall mean a corporation, company or other entity: 

 More than fifty percent (50%) of whose outstanding shares ore securities (representing the right to vote for the election of directors or other managing authority) are, now or hereafter, owned or controlled,
directly or indirectly, by a Party hereto, or 
 Which does not have outstanding shares ore securities, as may be the case in a partnership,
joint venture or unincorporated association, but more than fifty percent (50%) of whose ownership interest representing the right to make the decisions for such corporation, company or other entity is, now or hereafter, owned or controlled,
directly or indirectly by a Party hereto. 
 Article 2 – Scope of Work 
  

	2.1	Subject to the terms and conditions of this Agreement and the respective Individual Agreement to be executed for each Device or family of Devices Supplier shall – in
accordance with and under use of the applicable Processing Specification and the Requirements for Quality Assurance – process and pack Devices according to the specifications using the materials defined in an Individual Agreement.

  

	2.2	Subject to Siemen’s prior written consent, Supplier may use one of its subsidiaries for performing the work as sot forth in Section 2.1 above. The Subsidiary and the
place, where the work according to Section 2.1 above will be performed have to be fixed in the respective Individual Agreement and shall not be changed without Siemen’s prior written consent. 

  

	2.3	In the case of technical problems arising in the processing of Devices, especially with regard to yield and/or quality, Supplier shall inform Siemens immediately in writing.
Notwithstanding any with Siemens may have, Siemens is at its own costs prepared to assist Supplier to a reasonable extent in solving the above mentioned problems. 

	2.4	The Parties shall name a technical coordinator in each Individual Agreement. 

 Article 3- Qualification Procedure 
 Prior to the start of volume processing of each type of Device or a family of Devices
the Parties shall conduct a qualification procedure. The details are to be fixed in the respective Individual Agreement. The qualification procedure involves inspection of the processing line by Siemens or its Subsidiaries. 
 Article 4- Siemens Information 
  

	4.1	Siemens shall provide supplier with the Siemens Information in the same form as available at Siemens in the English language. The details are to be fixed in the respective
Individual Agreement. 

  

	4.2	Supplier may use Siemens Information supplied under this Agreement only for the purposes set forth in this Agreement and shall not use Siemens Information for any other purposes,
even not for internal purposes. 

 Article 5- Delivery of Devices by Siemens 
  

	5.1	Siemens or a Subsidiary of Siemens will deliver to Supplier as set forth in an Individual Agreement the quantity of devices necessary to fulfill Supplier’s obligations.
The Devices shall be delivered by special carriers. The Supplier undertakes to return such special carriers to the address specified by Siemens or its Subsidiaries. Freight costs incurred in connection with the return of such special carriers shall
be borne by Siemens or its Subsidiaries. 

  

	5.2	Supplier shall inform Siemens or its subsidiaries immediately in writing of defective Devices and shall return such defective devices to Siemens or its Subsidiaries. On written
request of siemens or its Subsidiaries Supplier shall destroy the defective Devices and confirm the destruction in writing. All costs resulting therefrom shall be borne by Siemens or its Subsidiaries. 

 Article 6- Consignment of Equipment and Special Tooling 
  

	6.1	Siemens may consign to Supplier Equipment or Special Tooling which is required for the purposes of this Agreement. Title to such equipment and Tools shall vest in Siemens. Supplier
shall acknowledge the consignment of Equipment or Special Tooling within two weeks of its installation and with effect of such acknowledgment, Supplier shall be responsible for the maintenance and repair of such Equipment and Special Tooling fair
wear and tear excepted. 

 Siemens may conduct physical inventory checks of such equipment and Special Tooling. 
  

	6.2	Supplier shall use such Equipment and Special Tooling only in the performance of this Agreement, an Individual Agreement or Purchase Orders placed hereunder unless otherwise approve
by Siemens. 

  

	6.3	Suppler shall clearly mark such Equipment and Special Tooling as property of Siemens and shall indemnify siemens for all damages of Equipment and Special Tolling belonging to
Seimens. 

  

	6.4	The Supplier shall not modify or upgrade the Equipment or Special Tooling in any manner without prior written approval of Siemens. 

  

	6.5	After the termination or completion of this Agreement, the respective Individual Agreement or Purchase Order placed hereunder Supplier will upon request of Siemens provide a list of
Equipment and Special Tooling in the form requested and shall return Equipment and Special Tooling in the same condition as it had been at the time of consignment. 

 Article 7- Quality Assurance 
  

	7.1	Supplier shall submit to Siemens its official quality assurance manual and workmanship standard and shall use and maintain such standard. Siemens may request alterations to the
quality assurance manual and workmanship standard reasonable in order to improve the overall product quality of the Contract Products. The responsibility for such quality assurance manual and workmanship standard, however, shall in any case rest
with Supplier. 

  

	7.2	Supplier shall allow siemens and its Subsidiaries direct access to its system monitoring process of Contract Products by dataline. Each Party shall bear the costs for such a data
link arising at its side. 

  

	7.3	Supplier shall provide and maintain an inspection system to be approved by Siemens. Records of all inspections shall be delivered to Siemens together with each lot of Contract
Products and shall be kept complete and available for review by Siemens at any time. The access of data shall be made possible on request within 24 hours. The data retention period is specified in the Individual Agreement.

  

	7.4	If during the term of an Individual Agreement the actual yield is below the guaranteed yield set forth in the respective Individual Agreement. Supplier shall immediately
inform Siemens in writing and Siemens and suppler shall compensate Siemens for the damage of the Devices. The amount of compensation shall be calculated in accordance with the formula specified in the Individual Agreement.

	7.5	Upon request of Siemens or its Subsidiaries, Supplier is prepared to allow Siemens or its Subsidiaries and Supplier’s Subsidiaries. If the audit results are negative and
corrective actions are denied Siemens has – notwithstanding any other right Siemens have – the right to terminate the Basic Agreement and/or the respective Individual Agreement concerned on immediate effect. Siemens’ personnel and
that of its Subsidiaries are allowed to enter all premises which are used by Supplier or its Subsidiaries in order to fulfill the obligations under this Agreement or an Individual Agreement and to observe all Contract Product related operations and
documentation provided proper written notice is given duly in advance. 

  

	7.6	Upon request of Siemens, Supplier is prepared to allow the delegation of a reasonable number of qualified engineers to Suppler for the term of this Agreement. Notwithstanding the
fact that at all times it is Supplier’s sole responsibility to comply with the terms of this Agreement and the Individual Agreements, these engineers shall assist supplier in fulfilling its obligations under this Agreement. All costs resulting
form such Delegation shall be borne by Siemens. Further details (e.g. number and qualification of the engineers) shall be agreed upon in writing separately. 

  

	7.7	All further details regarding quality assurance are laid down in the Requirements for Quality Assurance and the respective Individual Agreement. 

 Article 8- Changes of the Specifications 
  

	8.1	In case Siemens requests changes of the Processing Specification, Supplier has to comply with such change request and to evaluate its consequences. Supplier will inform Siemens
within 20 working-days of the result of such evaluation in writing. The Parties shall discuss in good faith the price for such changes. 

  

	8.2	In the event Supplier proposes to deviate from the Processing Specification or the requirements for Quality Assurance, Supplier shall inform siemens thereof in writing. Siemens may
approve or disapprove such modifications or change request and shall inform Supplier in writing about its decision. Siemens and its subsidiaries will then determine how many units of the ordered number of Contract Products shall be shipped without
the modifications or changes until first shipment takes place according to the new revision level. 

  

	8.3	If the Processing Specification is changed Suppler and Siemens shall – on written request of Siemens – perform a new Qualification Procedure according to Article 3 above.

 Article 9- Blanket Purchase Orders, Demand Plan 
 The scope of Suppler’s delivery and the purchase obligations of Siemens and/or its subsidiaries shall depend on the Blanket Purchase Orders and written Demand Plan place by Siemens and/or its subsidiaries in
writing. The detailed procedure shall be fixed in the Individual Agreement. 

 Article 10- Delivery of Contract Products 
  

	10.1	Delivery of Contract Products shall be effected as set forth in the Individual Agreement. 

  

	10.2	On request of Siemens and/or its Subsidiaries and on terms and conditions to be set for the in each Individual Agreement Supplier is prepared to accept fast track orders. The term
of delivery with respect to normal and fast track is set forth in the Individual Agreement. 

 Article 11- Default 
  

	11.1	If any circumstances should arise, which could result in a delayed delivery to Siemens or its Subsidiaries, Supplier shall promptly notify Siemens or its Subsidiaries in writhing.

  

	11.2	If Supplier is, except by reasons of Force Majeure as set forth in Article 16 hereof or delayed delivery of Devices, in default with the delivery of Contract Products, Siemens or
its Subsidiaries shall serve written notice (hereinafter: “Notice”) to Supplier stating customer, quantities,, due date and details of Contract Products being in default, Siemens may claim liquidated damages as set forth in the Individual
Agreement. 

 In addition to these rights, after a period of one month after serving Notice to Supplier Siemens or its
Subsidiaries may cancel the Blanket Purchase Order wholly or in part without incurring any liability, and shall reorder the quantities according to their needs after termination of the circumstances interrupting the delivery. 
 Article 12- Prices and Terms of Payment 
 Prices for
the Contract Products and terms of payment are stated in the Individual Agreement or Purchase Order and include appropriate packing. Payment of invoices shall not constitute acceptance of the Contract Products. Invoices shall be addressed to such
addresses as set forth in the respective individual Agreement. 

 Article 13 – Warranty/Defects of Epidemic Nature 
  

	13.1	Supplier represents and warrants that the Contract Products conform with the Processing and Packing Specifications and the Requirements for Quality Assurance and are free from
defects in material and workmanship. 

  

	13.2	The warranty period for the Contract Products shall end 24 months after the delivery to customers of Siemens but in any case not later than twelve months from the date of receipt of
the Contract Products by Siemens or its Subsidiaries. 

  

	13.3	If any Contract Product supplied by Supplier hereunder fails to conform with this warranty Supplier shall replace the defective Contract Products free of charge for Siemens.
Supplier shall pay to Siemens and its Subsidiaries the costs of the Devices (Including the cost for transportation) which are necessary to replace the defective Contract Products. 

 The costs of returning defective Contract Products to Supplier and the expenses required for resending Contract Products to Siemens shall be borne by
Supplier 
  

	13.4	If defects or failures appear to be of epidemic nature, Supplier shall without delay take appropriate actions to remedy such defects in agreement with Siemens. Supplier shall
immediately inform Siemens about his actions to be taken. Epidemic failure shall mean a factory failure rate or field return rate as defined in the Individual Agreement. Pending the correction of the epidemic failure, Siemens and its
Subsidiaries shall be entitled to postpone the delivery or cancel any outstanding orders. 

 Supplier shall pay to Siemens the
costs of the Devices (including the cost for transportation) which are necessary to replace the defective Contract Products and shall replace free of charge all the defective Contract Products notified by Siemens or its Subsidiaries to Supplier.

 The warranty for epidemic failures shall end two (2) years from the date of receipt of Contract Products by Siemens. 
 Article 14 – Patent Indemnity and Liability 
  

	14.1	If a third party raises justified claims against Siemens or its Subsidiaries for infringement of intellectual property rights or copy rights (all together hereafter referred to as
“Protective Rights”) by Contract Products provided that such claims do not refer to the Siemens Information, Supplier shall indemnify and hold harmless siemens or its Subsidiaries against any costs, claims, expenses and damages caused by
Protective Right infringement by the Contract Product. 

 Claims shall be deemed justified only if the are acknowledged as such by seller or finally adjudicated as
such by a court of competent jurisdiction. 
  

	14.2	The obligations of Supplier mentioned in Section 14.1 above apply under the precondition that Siemens or its Subsidiaries inform Supplier without delay in writing of any claims
for infringement of Protective Rights, do not accept on their own any such claims and conduct any disputes, including settlements out of court, only in agreement with Seller. 

  

	14.3	Supplier shall indemnify and hold harmless Siemens and its Subsidiaries against any costs, claims, expenses and damages due to any product liability caused by defects in the
Contract Products Supplier is responsible for. 

  

	14.4	Supplier warrants that all Contract Products delivered to Siemens comply with the applicable laws, ordinances, and other rules of the Federal Republic of Germany and the European
Union concerning the protection of the environment and public health. 

 Suppler shall indemnify and hold Siemens or its
Subsidiaries against any costs, claims, expenses and damages resulting from Supplier’s violation of such laws, ordinances and rules. 
 Article 15
– Confidentiality 
  

	15.1	Supplier will keep secret – even after termination of this Agreement – with respect to third parties all Siemens Information furnished hereunder. Supplier shall limit
internal access to Siemens information to officers or employees who have a need to know the Siemens Information for the purpose of this Agreement. Supplier shall treat the Siemens Information with the same degree of care, which companies adopt to
protect their own confidential information but no less than a reasonable degree of care. 

  

	15.2	Prior to disclosure of any Siemens Information to its officers or employees, Supplier shall inform them of their duties of confidentiality and if there does not exist a general
written confidentiality agreement, Supplier shall obtain from such persons written confidentiality agreements. 

	15.3	Any Siemens Information which Supplier can demonstrate 

  

	 	•	 	is known to or is in the possession of Supplier prior to transmission by Siemens without obligation of confidentiality as proven by Supplier’s written records, or

  

	 	•	 	became legally available to Supplier from a source other than Siemens without obligation of confidentiality or has been passed into the public domain other than by breach of this
Agreement, or 

  

	 	•	 	is independently developed by Supplier as proven by Supplier’s written records, or 

  

	 	•	 	the disclosure of which is expressly authorized by Siemens shall not be subject to the above confidentiality provisions. 

 Article 16 – Force Majeure 
 Neither Party shall
be liable to the other for failure or delay in the performance of any of its obligations under this Agreement for the time and to the extent such failure or delay is caused by Force Majeure such as, but not limited to, riots, civil commotions, wars,
hostilities between nations, governmental laws, orders or regulations, actions by the government or any agency thereof, storms, fires, sabotages, explosions or any other contingencies beyond the reasonable control of the respective party. In such
events, the affected Party shall immediately inform the other part of such circumstances together with documents of proof and the performance of obligations hereunder shall be suspended during, but not longer than, the period of existence of such
cause and the period reasonably required to perform the obligations in such cases. 
 Should, however, a circumstance of Force Majeure
continue for a period of more than sixty (60) days, then either Party has the right to forthwith terminate this Agreement, the respective Individual Agreement, and Purchase Order by registered letter. 
 Article 17 – Term and Termination 
  

	17.1	This Agreement becomes effective upon its execution by both Parties. It shall be in effect for a period of five (5) years and shall be extended automatically by periods of one
year each unless terminated by written notice to the end of such five years or the end of an extension period. The term of notice shall be six (6) months or as stated in the Individual Agreement. 

	17.2	This Agreement may by written notice be prematurely terminated with immediate effect by the Party having such rights as herein provided – and notwithstanding any other rights
such Party may have – upon the occurrence of either one or more of the following events stated below: 

  

	 	•	 	By either Party in the event that the other Party voluntarity files a petition in bankruptcy or has such a petition involuntarily filed against it or is placed in an insolvency
proceeding or if any assignment for the benefit of its creditors is made. 

 The aggrieved party shall, without delay, inform the other Party in writing of the occurrence of any one
of the events mentioned above. 
  

	 	•	 	By either Party in the event that the other Party has failed substantially in the performance of any material contractual obligation, provided that such default is not remedied to
the other Party’s satisfaction, within thirty (30) days after written notice to the other Party specifying the nature of such default and requiring remedy of the same. 

 Article 18 – Provisions covering the time after termination 
  

	18.1	In the event of termination of this Agreement and/or an Individual Agreement hereunder Siemens shall take and Supplier shall be obliged to deliver all quantities of Contract
Products ordered by Siemens and acknowledged by Supplier prior to the effective date of termination and on terms and conditions as set forth in the individual Agreement. 

  

	18.2	In case of termination of this Agreement Supplier shall, upon respective written request by Siemens, 

  

	 	•	 	immediately stop to use any Siemens Information unless other wise agreed upon in writing, and 

  

	 	•	 	return all Siemens Information received in writing, as well as all copies made of such Siemens Information, and 

  

	 	•	 	certify by written statement that no copies of Siemens Information have been retained by Supplier. 

  

	18.3	Articles 13, 14, 15, 19, 20 shall survive the termination of this Agreement. 

 Article 19-Arbitration 
  

	19.1	Any differences or disputes arising out of or in connection with this Agreement shall be finally settled under the Ruled of Arbitration of the International Chamber of Commerce in
Paris (“Rules”) by three arbitrators appointed in accordance with the Rules. 

  

	19.2	The place of arbitration shall be Manila if Supplier is the defendant, and Munich if Siemens is the defendant. The procedural law of this place shall apply where the Rules are
silent. The arbitrage award shall be substantiated in writing. The arbitrage tribunal shall also decide on the matter of costs of the arbitration. The language of the arbitration shall be English. 

 Article 20- Substantive law 
 All disputes shall be in accordance with the provisions of this Agreement and all other agreements regarding its performance, otherwise in accordance with the substantive law in force in Switzerland without reference
to its conflict of law provisions. The United Nations Convention on Contracts for the International Sale of Goods of April 11, 1980 shall not apply. 
 Article 21- Miscellaneous 
  

	21.1	For the Purchase Orders placed by Siemens or its Subsidiaries under this Agreement no other conditions than those specified herein and in the respective Individual Agreement shall
be applicable. 

  

	21.2	All changes and amendments to this Agreement must be in writing to be valid. This requirement of written form can only be waived in writing. 

  

	21.3	Notices and communications between Supplier and Siemens shall be given in writing in English language to the following addresses of the Parties or to such other address as the Pary
concerned may subsequently notify in writing to the other Party: 

 If to Supplier to: PSi Technologies, Inc 
 Electronics Avenue, 
 FTI Complex, Taguig

 Metro Manila, Philippines. 
 If to Siemens to: Siemens or its Subsidiaries as specified in the respective Individual Agreement. 
  

	21.4	Supplier shall not be permitted to assign this Agreement, or parts thereof, or any right or obligation hereunder, wholly or partially to any third party without the prior written or
consent of Siemens. 

  

	21.5	Should individual provisions of this Agreement be legally ineffective or unfeasible for legal reasons the validity of the remaining provisions of this Agreement shall not be
affected thereby. In such a case the Parties shall come to an agreement approximating as closely as possible the arrangement originally envisaged in this Agreement. 

  

	21.7	Supplier is authorized to use the Simens logo, and trademark only to the extent necessary to meet the Processing Specification and/or Packing Specification. No other rights with
respect to Siemens’ trademarks, trade names or brand names are conferred, either expressly or by implication upon Siemens. 

	21.8	When this Agreement becomes effective, it shall constitute the entire understanding and agreement between the Parties and shall insofar supersede and cancel all previous agreements,
negotiations and commitments, either oral or written. 

  

	21.9	Siemens Information as well as supplies to be performed under this Agreement may be subject to governmental export regulations and therefore may be subject to the approval by the
respective governmental authorities. 

 In Witness Whereof the Parties hereto have duly executed this
Agreement. 
  

					
	Date: 7th September 1998	 		 	Date: 7th September 1998
			
	PSi Technologies, Inc.	 		 	Siemens Aktiengesellschaft
			
	 /s/ Arthur J Young, Jr.
	 		 	 /s/ K. Platzoeder

	Arthur J Young, Jr.	 		 	Dr. K. Platzoeder
	President and Chief Operating Officer	 		 	Head of Backend OperationsIndividual Agreement dated September 7, 1998

 Exhibit 4.16 
 INDIVIDUAL AGREEMENT 
 (Reference PSi/IA/210898 Rev 1.0) 
 for the backend processing of semiconductor devices 
 to 
 the Basic Agreement dated 7th September 1998 between Siemens Aktiengesellschaft 
 and PSi Technologies, inc.

 between 
 PSi Technologies,
Inc. 
 Electronics avenue, 
 FTI
Complex, Taguig, 
 Metro Manila, Philippines 
 -hereinafter referred to as “Supplier” 
 and 
 Siemens Components (Advanced Technology) Sdn. Bhd. 
 Free Trade Zone, batu Berendam, 
 75350 Melaka, Malaysia. 
 -hereinafter referred to as “ Siemens” – 
 – Siemens and Supplier
are hereinafter referred to as “Party” or “Parties” – 

 Article 1 – Definitions 
  

	1.1	“Devices” shall mean the semiconductor devices specified in Annex 1. 

  

	1.2	“ Contract Products” shall mean Devices processed by Supplier according to Processing specification and packed according the to the Packing Specification. Types of
Contract Products as per Annex 1. 

  

	1.3	“Effective Date” shall mean the date on which this Agreement enters into force. 

  

	1.4	“Packing Specification” shall mean the specification and documentation attached hereto as Annex 2 according to which the Contract Products shall be packaged by Supplier.

  

	1.5	“Processing Specification” shall mean the specification and documentation attached hereto as Annex 3. 

  

	1.6	“Requirement for Quality Assurance” shall mean the quality requirements attached hereto as Annex 4. 

 Article 2 – Scope of Work 
  

	2.1	Subject to Purchase Orders pursuant to Article 6.3 below Supplier shall – in accordance with and under use of the Processing Specification – process Devices and pack the
processed Devices according to the Packing Specification. 

  

	2.2	Supplier shall purchase the material necessary for the processing of Devices in accordance with the Processing Specification. 

  

	2.3	The work to be performed by Supplier according to Article 2.1 above shall be done at Supplier’s facility in Manila, Philippines. 

  

	2.4	Upon request of Siemens, supplier shall promptly furnish such information , reports or data as set out in Annex 5. 

  

	2.5	The technical coordinators of the Parties shall be : 

 Supplier : 
 Mr. Marco Parado 
 Siemens : 
 Mr. Lim Eng Kuan 

 Article 3 – Delivery of Devices by Siemens 
  

	3.1	Devices are delivered CIF Supplier’s Manila Factory according to incoterms 1990. 

  

	3.2	Siemens may ask Supplier to rework defective Devices. Supplier will comply with such request if he is able to rework the Defective Devices. The price for such work shall be agreed
separately on a case by case basis. 

 Article 4 – Qualification Procedure 
  

	4.1	Prior to the start of volume processing of each typed of Device or family of Devices, the parties shall conduct a qualification procedure. Supplier shall process the requested
quantity of samples of Contract products. These qualification samples shall meet the following requirements : 

  

	 	•	 	Samples shall originate from a statistically stable production line. 

  

	 	•	 	Samples shall be recently processed in the production line intended for volume processing of Devices for Siemens. 

  

	 	•	 	Samples shall not be prepared, tested or prescreened under special conditions, unless these procedures are part of the normal process flow. 

  

	4.2	Siemens may perform a System Audit and Line Audit at the start of the processing of the Contract Products. Further regular audits will be carried out on as ix monthly basis or when
Siemens deems necessary. 

 Article 5 – Quality Assurance 
  

	5.1	Records of all production, process and quality inspection shall be kept complete and data retention period of such records shall be (10) years. 

  

	5.2	The guaranteed yield for processing of Devices shall be as set out in Annex 8. 

  

	5.3	All vendor corrective action reports ( VCAR ) have to be replied promptly within five (5) days. 

 Article 6 – Delivery of Contract Products 
  

	7.1	Contract Products shall be delivered FOB Manila Airport according to Incoterms 1990. 

  

	7.2	Delivery shall be effected lot by lot. Each lot shall be accompanied with appropriate papers ( lot traveler ). All dispatch notes and/or invoices must include the order number,
product number and the lot numbers of Contract Products shipped. 

	7.3	All production data ( Lot travelers and Statistic Process Control ( SPC) – cards ) of each lot shall be available at Supplier for at least ten (10) years and shall be
provided to Siemens upon written request of Siemens. 

 Supplier shall constantly document and affix its lot number on Contract
Products for identification purposes. 
 If requested by Siemens, supplier shall further mark Contract Products with any marking ( top and
bottom ) as determined by Siemens in writing. Supplier will keep records of these shipments and related serial numbers available for Siemens, it requested. 
 Article 8 – Term of Delivery, Fast Track Orders, Cycle Time 
  

	8.1	The term of delivery for Contract Products shall be nine (9) days after arrival of the Devices at Supplier. 

  

	8.2	Supplier shall use best efforts to implement a process that will reduce the door to door cycle time and shall ensure that in any event, its in house cycle shall not exceed nine
(9) days. In house cycle shall mean throw in of Devices to packing . 

 Article 9 – Prices, Terms of
Payment 
  

	9.1	Prices are stated in Annex 6 hereto. 

  

	9.2	Payment shall be effected thirty (30) days net after receipt of Contract Products and the respective invoice from Supplier. Siemens and the Subsidiaries of Siemens reserve the
right to deduct any amount due to Siemens or Siemens’ Subsidiaries by Supplier. 

  

	9.3	Invoices shall be addressed to: 

 Siemens Components (
Advanced Technology ) Sdn. Bhd. 
 P.O. Box 52, 
 75710 Melaka 
 West Malaysia 
  

	9.4	The prices set forth in Annex 6 shall be fixed for a period of one year ( “ Fix Period” ). However, the Parties will review the market conditions, material and labor cost
influencing the price to be fixed for the succe3eding Fix Period in good faith. Within the last three months of each Fix Period the Parties shall mutually agree on the price applicable for the next Fix Period. 

 If the Parties have not worked out a mutually acceptable solution, Supplier shall continue to process Devices at the most recent contractual prices until
the Individual Agreement terminates. Should the Parties, however, come to an agreement before the Individual Agreement terminates, then the new price shall apply retroactively. 

 Article 10 – Warranty/Defects of epidemic nature 
 Epidemic failure shall mean a factory failure rate at Suppleir exceeding 7,500 dpm or a field return rate exceeding 5.000 dpm. 
 Article 11 – Consignment of Equipment and Special Tooling 
 Siemens may consign to Supplier equipment or special tooling which is required for the purposes of this Agreement as set out in Annex 9. The terms and
conditions shall be as set out in the Basic Agreement. 
 Article 12 – Scrap 
 Rejects and fallouts and other scrap containing Devices, must be destroyed by Supplier unless otherwise mutually agreed. Such destruction if desired, can
be witnessed by a Siemens representative. The destruction has to be certified by Supplier in written form. 
 Article 13
– Term and Termination 
 This Agreement becomes effective with its execution by both Parties and after the approvals of all authorities
concerned have been obtained. It shall be in effect until 30th September 2001 but subject to yearly negotiation
on the terms and conditions, volume and prices. The Individual Agreement shall be extended automatically by periods of one year each unless terminated by written notice. The term of notice shall be six (6) months. This Agreement shall
automatically terminate upon termination of the Basic Agreement. 
 Article 14 – Interim Provisions Following
Termination 
  

	14.1	After notice to terminate this Agreement, by Siemens or by Supplier, Supplier shall continue to supply Siemens according to the terms of this Agreement the Contract Products which
are due for delivery up to the expiration for the notice and a further period up to twelve (12) months of specified jo0b relocation to another Supplier or it sown premises, qualification and production ramp – up. 

 

	14.2	In case of termination of this Agreement for whatever reason Supplier shall, upon respective written request by Siemens, return all documented “ Siemens Information”
received , as well as copied made of such documented information. 

  

	14.3	All provisions which by their context are intended to survive termination shall survive. 

 Article 15 – Miscellaneous 
 As far as this Individual Agreement contains no provisions or no final provisions the Basic Agreement shall apply supplementary. 
 In Witness Whereof the Parties hereto have duly executed this Agreement. 
  

					
	Date : 7th September 1998	 		 	Date : 7th September 1998
			
	PSi Technologies Inc.	 		 	Siemens Components ( Advanced Technology) Sdn. Bhd.
			
	 /s/ Arthur J. Young Jr.
	 		 	 /s/ Lee Ah Nga

	Arthur J. Young Jr.	 		 	Lee Ah Nga
	President and Chief Operating Officer	 		 	General Manager

 INDIVIDUAL AGREEMENT 
 PSi Technologies, Inc. 
 And 
 Siemens Components ( Advanced Technology) Sdn. Bhd. 

 ANNEXES to Individual Agreement reference PSi/IA/210898 Rev1.0 
 THE ASSEMBLY AND TESTING OF POWER DEVICES 
  

	 	1.	Types of Devices and Contract Products 

  

	 	2.	Packing Specification 

  

	 	3.	Process Specification and Materials 

  

	 	4.	Requirements for Quality Assurance 

  

	 	5.	Requirements for Process and Quality Reports, Shipping Records and Retention Period 

  

	 	6.	Contract Prices and terms of Payment 

  

	 	7.	Forecast and Demand 

  

	 	8.	Guaranteed Accumulative Production Yield Level 

  

	 	9.	Consigned Equipment and Tooling List 

 Annex 1 
 Types of
Devices and Contract Products 
  

					
	1.	 	The Devices are defined as follows :
			
		 	Device Types or Wafer for	  	: D-Pak / I-PAK
		 		  	    To 220-3/ TO 220-3FP
		 		  	      To 247
		
	2.	 	Contract Products are defined as follows :
			
		 	Contract Products	  	: D-PAK / I-PAK
		 		  	    TO 220-3 / TO 220-3FP
		 		  	      TO 247

 Annex 2 
 Packing
Specification 
 Packing specification shall be as per SIEMENS’s packing specification APAS 30/35, a copy of

 Annex 3 
 Processing Specification and Materials 
  

	1.	Processing Specification 

  

	 	1.1	SUPPLIER shall manufacture, test and pack the contract product strictly as per SUPPLIER’s manufacturing specification which shall be approved and signed off by SIEMENS for the
following packages with their respective documentation number and revision level: 

  

					
	 Package
	 	 Manufacturing Specification Doc.#
	  	Revision Level
	TO 220	 	Siemens-TO-4001	  	Rev.00
	TO 220-2FP	 	To be advised when available	  	
	D-PAK	 	}Siemens-TO-4002	  	Rev. 00
	I-PAK	 	}	  	
	TO 247	 	Siemens –TO-403	  	Rev. 00

 The above manufacturing specification shall include the following 
  

	 	 ̈	Testing shall be as per SIEMENS test specification (PV), official copies shall be made available to SUPPLIER 

  

	 	 ̈	Die-attach solder wire used must be of J-Alloy solder type SnAGSb10 for TO 220 package and type 95Pb/5Sn for D-pak AND I-PAK 

  

	 	 ̈	Molding compound used must be from Nitto Agreement 

  

	 	1.2	Should there be any change in the manufacturing specification prior written approval must be obtained from SIEMENS. SIEMENS has the right to object to the changes as per condition
set forth in article 8 in the Basic Agreement. 

  

	2.	Materials 

  

	 	2.1	Wafer shall be consigned by SIEMENS in the form of unsawn wafer. 

  

	 	2.2	Primer, Print Labels and Quality Seal Stickers shall be consigned by Siemens. 

  

	 	2.3	Other raw materials including packing materials shall be provided by the SUPPLIER: 

 Materials specification shall be as per specified by SUPPLIER’s manufacturing specifications. The material specification shall be disclosed to SIEMENS. Should there be any change in materials specification prior
written approval must be obtain from SIEMENS. SIEMENS has the right to object to the changes as per conditions set forth in article 8 in the Basic Agreement. 

 Annex 4 
 Requirement for Quality Assurance 
  

	1.	The quality requirement and Contract Products specifications are per SUPPLIER Processing Specifications as set forth in Annex 3 

  

	2.	SIEMENS deserves the right to perform incoming inspection of the Contract Products to ascertain its compliance to the quality requirement and specifications as per SUPPLIER
Processing Specification as set forth in Annex 3. 

 Annex 5 
 Requirement for Process and Quality Reports, Shipping Records and Retention Period 
  

	 	1.	The SUPPLIER shall provide the following data to SIEMENS on a monthly basis: 

  

	 	a)	AOQ (Average Outgoing Quality) 

  

	 	b)	PA (Process Average) 

  

	 	c)	Cpk (Capability Indices) 

  

	 	d)	PSC (Process control Survellance Records) 

  

	 	e)	Reliability Monitoring Report 

  

	 	f)	Production Yield Report 

  

	 	g)	Delivery Performance Report 

  

	 	2.	The SUPPLIER shall provide the following data to SIEMENS on a weekly basis with monthly cut-off: 

  

	 	a)	WIP Inventory Reports for raw chips and assembled units 

  

	 	3.	Records of all production, process and quality inspection shall be kept complete and data retention period of such records shall be ten (10) years. 

 Annex 6 
 Prices
and Terms of Payment 
  

	 	1.	Contract Products Pricing shall be as per attached PSi Agreed Price List for B’Y98/99 

  

	 	2.	Price base : XXXXXXXXXXXXXXX 

  

	 	3.	Terms of Payment : XXXXXXXXXXXXXXXXXXXX 

  

	 	4.	XXXXXXXXXXXXXXXXXXXX 

  

	 	5.	Liquidated damages 

 XXXXXXXXXXXXXXXXXXXXXXXXXXXXX 
 PSI AGREED PRICE LIS BY 1998 / 1999 
 xxxxxxxxxxxxxxxxxxxxxxxxx 

 Annex 7 
 Forecast
and Demand 
  

	 	1.	Prior to the 15th day of each calendar month
SIEMENS shall submit to SUPPLIER a tolling forecast for the next three (3) calendar months period in the manner as follows. 

  

	 	1.1	The 1st calendar month of this rolling forecast
shall be firm and binding in quality and Contract Products mix. The 2nd and 3rd calendar months of this rolling forecast is not binding and may fluctuate within the window of plus or minus twenty (20) percents.

 Changes in each rolling forecast shall become the basis for the next rolling forecast. Any change in quality which is not
within for-mentioned limits is considered to be agreed by SUPPLIER if SUPPLIER does not not object in writing to such variations within five (5) working days upon receipt of forecast from SIEMENS. SUPPLIER shall employ its best efforts to
conform with the request of SIEMENS. 
  

	 	1.2	SIEMENS shall order Contract Products by submitting each week a written demand plan, specifying Contract Products, quantities and request delivery dates. SUPPLIER shall deliver the
Contract Products as per SIEMENS request in conformity with the clause 1.1 (Annex 2) above. 

  

	 	1.3	Notwithstanding clause 1.1 (annex 2) SIEMENS is entitled without liability to revise its forecast plan for individual Contract Products by giving two(2) months written notice to
cater for product cancellation and/or to readjust latest forecast volume due to fluctuation in demand. 

  

	 	1.4	XXXXXXXXXXXXXXXXXXXXX 

 Annex 8 
 Guaranteed Accumulative Production Yield Level 
  

	 	1.	The month-to-date Guaranteed Yield levels shall be jointly determined by Supplier and Seimens after three (3) to six (60) months of production run.

  

	 	2.	The above Guaranteed Yield Levels shall then be used as reference for the calculation of yield loss compensation as per item 4 in Annex 6 on a quarterly basis.

 Annex 9 
 Consigned Equipment Tooling 
 Package/Product
:    Dpak/Ipak 
 Date of transfer
:                                   
  

										
	 S/N
	  	 Descriptions
	  	Qty	  	Fixed Asset No.	 	Original
Acquisition cost ($)
	1	  	Primer Coating Controller	  	1 unit	  	015190	 	Rm	 4,500
					
	2	  	Semi-auto Primer Dispensing Machine	  	1 unit	  	015190 (Cap)	 	Rm	 46,000
					
	3	  	Wire-bonder Delvotec Model 6310	  	1 unit	  	06595	 	Rm	 490,675

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