Document:

Joint Development Agreement

 Exhibit 10.9 
  

	[***]	CERTAIN INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE
SECURITIES ACT OF 1933, AS AMENDED. 

  
 JOINT
DEVELOPMENT AGREEMENT 
  
 This JOINT DEVELOPMENT AGREEMENT
(“Agreement”) is entered into as of June 1, 1999, by and between Advanced Analogic Technologies, Inc. (“AATI”), a California corporation with offices at 1250 Oakmead Parkway, Suite 310, Sunnyvale, CA 94086 and GEM
Services, Inc. (“GEM”), a Cayman Islands corporation with offices at 43170 Osgood Road, Fremont, CA 94538. GEM and AATI are hereinafter also referred to, singly, as the “Party,” and collectively, as the
“Parties.” 
  
 RECITALS 

 
 A. AATI has established capabilities in designing, engineering,
manufacturing, and marketing certain semiconductor integrated circuit and discrete devices. 
  
 B. GEM has established capabilities as an outsourcing company for designing, engineering, manufacturing, and marketing packages and packaging technologies for semiconductor integrated circuit and discrete devices.

  
 C. GEM and AATI have decided that it is in their mutual
interests to cooperate in the development of certain packages commonly employed in the manufacturing, packaging and assembly of discrete and integrated circuit devices as set forth herein. 
  
 NOW, THEREFORE, in consideration of the recitals and other good and valuable
consideration the PARTIES agree as follows: 
  

	1.	NATURE & SCOPE OF AGREEMENT & RELATIONSHIP OF THE PARTIES 

  
 This Agreement defines guidelines and legal obligations for GEM and AATI to engage in cooperative development efforts of packages, packaging
techniques, and packaging related manufacturing techniques. The Agreement also prescribes guidelines and obligations for the manufacturing of packages, whenever applicable. The Agreement describes an initial co-development effort in specifics, and
sets forth a set of guidelines for future co-developments whose scope, content, and innovations have yet to be defined and agreed upon by the Parties (the initial development final deliverable and agreed upon subsequent development final
deliverables are collectively referred to as “Products”). For the purposes of this Agreement, “Processes” means those certain related processes, assembly and test techniques and other novel manufacturing and
engineering know-how and innovation discovered, conceived, or developed in the course of the Parties cooperative development effort of the Products. 
  
 1.1 First Co-Development Effort: The Parties agree to co-develop a JW-Type Package comprising a proprietary modification of a plastic
surface-mounted-package combining a J-lead type leaded package with a plastic body expanded to improve the lead-frame die-pad area (hence the nomenclature JW-Type packaging, an acronym for the J-lead Widebody package construction) as further
described in Annex A-1. The co-developed JW-Type Package of this Agreement houses a larger die and provides other improvements over conventional gull-wing and standard J-lead surface mount packages available today. The Parties also agree to
co-develop any related Processes needed to implement a JW-Type Package. The functional, mechanical, technical and reliability specifications of such a JW-Type Package (the “Product Success Criteria”) are to be included along with a
mutually agreed upon work and development plan (“Development Plan”) described in Annexes A-1 and B-1. The Parties agree to use commercially 
  

 
reasonable efforts to meet the Product Success Criteria, e.g. in this specific case to design, develop, test, and qualify the new JW-Type Package and to
bring it to a state of production readiness. The status of the JW-Type Package development at the signing date of this Agreement is also described in Annex A-1. 
  
 1.2 Subsequent Co-Development Efforts: The Parties may from time-to-time agree to co-develop other new
packaging-related Products or Processes that may be mutually beneficial to both Parties; the scope and the extent of such developments are to be attached as subsequent Annexes A’s and B’s to this Agreement (e.g. Annex A-2, Annex A-3, etc)
and each such Product shall be described in a mutually agreed upon Development Plan. The functional, mechanical, technical, and reliability specifications of such a Product Success Criteria are to be included along with the Development Plan in the
applicable Annex. Only key criteria are to be listed in the Product Success Criteria (it is not meant to replace technical knowledge and common-sense engineering practices). In the event that the Development Plan includes the realization of
working prototypes or manufacturable product, the Parties agree to use commercially reasonable efforts to design, develop, test, and qualify the agreed-upon new package, process, or technique and to bring it to a state of production readiness
consistent with the Development Plan. Except in case of Section 1.1 (JW-Type Package), there is no presumption that the Development Plan for any Product or Process must or should result in a manufactured Product or marketed Process. In some
instances the Parties may agree that reduction to practice may be limited to a patent application. 
  
 1.3 Independent Contractors: This Agreement is not intended to and does not constitute a joint venture, partnership or other formal business
organization. Each Party hereto shall act as an independent contractor solely and shall not, except as specifically authorized and provided herein, act, or be construed, as an agent for the other Party for any purpose whatsoever and no Party shall
have the authority to bind the other or make any commitment or incur any costs or expenses for or in the name of the other Party except to the extent prescribed herein. 
  
 1.4 Development Expenses: Except as otherwise provided herein or by subsequent written contract, each Party shall
bear the expenses incurred by it with respect to this Agreement. 
  
 1.5 Patent Prosecution Expenses: Development expenses are separate and distinct from patent prosecution expenses, which are provided for in Section 2.6. 
  
 1.6 Key Employee: Richard K. Williams, an individual residing at 10292 Norwich Ave. Cupertino, CA 95014 is hereby
designated as a “Key Employee” under this Agreement. If Williams is for any reason, without GEM’s consent, no longer an AATI employee, such event shall give each Party the right to terminate any further development obligations
under this Agreement except for those programs and obligations in which it already is engaged. AATI represents that it has entered into an agreement with Richard K. Williams, and that he exclusively assigns AATI the authority, the right, and the
requirement to enter this Agreement with GEM for any and all of his innovations associated with (but specifically limited to) cooperative development efforts between GEM and AATI as set forth herein. 
  

	2.	INTELLECTUAL PROPERTY 

  
 It is anticipated in the course of package co-development efforts between GEM and AATI, that intellectual property, inventive know-how, and patentable
material may and will likely result. The Intellectual Property (defined below) from this combined effort is separate and distinct from independently developed Intellectual Property that each of the Parties may utilize in the co-development.

  

 2.1 Definition: For the purposes of this Agreement, “Intellectual Property” means
any intellectual property right of any kind or nature, including without limitation, invention (whether patentable or not), utility patents, design patents, copyrights and works of authorship, software, mask works, technology, devices, apparatus,
processes, methods, know-how, trade secrets and confidential or proprietary information. Annex C-l lists the Intellectual Property. 
  
 2.2 AATI Intellectual Property: Except as otherwise provided in Section 2.4, all Intellectual Property conceived or created by or for AATI pursuant
to its responsibilities under this Agreement (collectively, “AATI Intellectual Property”) shall as between the Parties, be the sole and exclusive property of AATI, and AATI will retain any and all rights to file any patent and/or
copyright applications thereon. 
  
 2.3 GEM Intellectual
Property: Except as otherwise provided in Section 2.4, all Intellectual Property conceived or created by or for GEM pursuant to its responsibilities under this Agreement (collectively, “GEM Intellectual Property”) shall as
between the Parties, be the sole and exclusive property of GEM, and GEM will retain any and all rights to file any patent and/or copyright applications thereon. 
  

2.4 Jointly Developed Intellectual Property: For the purposes of this Agreement and unless otherwise designated under this Section 2.4 or any
applicable Annex A, any Intellectual Property first discovered, conceived or created jointly by one or more of GEM employees and one or more of AATI employees (including the Key Employee’s related contributions) in the course of
performing development under this Agreement, shall be considered jointly-developed Intellectual Property (collectively, “Joint Intellectual Property”). 
  
 (a) Ownership of “First Co-Development Effort” Joint Intellectual Property (JW-Type
Package): Notwithstanding Section 2.4 above and unless otherwise agreed upon by the Parties in writing, all Joint Intellectual Property regarding the JW-Type Package referred to in Section 1.1 of this Agreement (collectively,
“JW-Package Intellectual Property”) will be exclusively owned by GEM free and clear from any restrictions by AATI. 
  
 (b) Ownership of Packaging-Related “Subsequent Co-Development Efforts” Joint Intellectual Property:
Notwithstanding Section 2.4 above and unless otherwise agreed upon by the Parties in writing, all Joint Intellectual Property regarding Subsequent Co-Development Efforts between GEM and AATI (as referred to in Section 1.2) limited solely within the
field of semiconductor packaging and assembly methods, semiconductor packages, lead frames, packaging and assembly equipment, handlers, test equipment and/or other packaging-related apparatus and methods (collectively “Packaging Intellectual
Property”) will be exclusively owned by GEM, unless otherwise specified in writing between GEM and AATI. Such ownership will be free and clear from any restrictions by AATI. 
  
 (c) Ownership of Non-Package-Related “Subsequent Co-Development Efforts” Joint
Intellectual Property: This Agreement does not provide for nor anticipate Joint Intellectual Property other than that related to JW-Package Intellectual Property or Packaging Intellectual Property. Accordingly, AATI does not agree to, nor
implies any assignment of its Intellectual Property regarding the design of semiconductor devices, processes, discrete power devices and transistors, wafer processing, circuit design, or other non-packaging related technology (collectively,
“Semiconductor Intellectual Property”). Notwithstanding Section 2.4 above, all Joint Intellectual Property regarding Semiconductor Intellectual Property will be exclusively owned by AATI, unless otherwise specified in writing
between GEM and 

  

 
AATI. Such ownership will be free and clear from any restrictions by GEM. Unless otherwise agreed upon by the Parties in writing, any Joint Intellectual
Property which does not constitute JW Package Intellectual Property, Packaging Intellectual Property or Semiconductor Intellectual Property, shall be jointly owned by the Parties without a duty of accounting. 
  
 2.5 “Joint Intellectual Property” Derivatives: For the
purpose of this Agreement, any improvement, modification, derivative, optimization, or other innovation resulting from or requiring Joint Intellectual Property shall likewise be considered as Joint Intellectual Property and remain subject to and
bound by the terms of this Agreement, including all inventive matter included in any and all “continuation” and “continuation in part” (CIP) patent applications or foreign filings. 
  
 2.6 “Joint Intellectual Property” Patent Prosecution: Under
this Agreement, the Parties agree to establish a Development Committee (defined below) will (i) determine whether the Parties intend to seek intellectual property protection of the Joint Intellectual Property, (ii) decide which claims and in what
countries patent prosecution of Joint Intellectual Property will be executed, (iii) determine whether “reduction to practice” should and will be extended to include producing functional prototypes (or limited to the filing of patent
applications) and (iv) determine which Party shall have primary responsibility for obtaining intellectual property protection for an invention or work of authorship and allocate the costs of the determined Intellectual Property filings and
prosecution between the Parties. 
  
 (a)
Patent Prosecution of Joint Intellectual Property of JW-Type Package and Packaging Intellectual Property: Notwithstanding Section 2.6 to the contrary and unless otherwise determined by the Development Committee, GEM shall be responsible for
all costs to prepare, prosecute, issue and maintain patents regarding the “JW-Package Intellectual Property” and “Packaging Intellectual Property.” 
  
 (b) Patent Prosecution of Joint Intellectual Property Not Approved By the Development Committee:
Notwithstanding Section 2.6 to the contrary and in the event that the Development Committee is unable to agree to file an application or applications regarding Joint Intellectual Property, the following provisions shall apply: 
  
 (1) Responsibility for Filings: Unless otherwise
determined by the Development Committee, GEM shall have the initial right to control the preparation, filing, prosecution and maintenance of any patent applications and patents within the Joint Intellectual Property. GEM shall keep the Development
Committee reasonably informed as to the status of such matters, including without limitation providing the Development Committee with copies of any substantive documents that GEM receives from the patent or copyright office promptly after receipt,
and by providing the Development Committee the opportunity, as far in advance of filing dates as reasonably possible, to review and comment on any documents which will be filed. AATI shall reasonably cooperate with and assist GEM and the Development
Committee in connection with such activities. 
  
 (2) Abandonment of Prosecution: If GEM decides that it no longer desires to prepare, file, prosecute or maintain an application or Intellectual Property right as provided in this Section 2.6 in any country or countries, GEM shall
give written notice to AATI of such election, but in no case later than 60 days before any required action relating to the filing, prosecution or maintenance of such patent application or Intellectual Property right. Upon such notice, AATI shall
have the right, but not the obligation, to file and maintain such Intellectual Property right or patent application in its own name and at 

  

 
its own expense and GEM shall reasonably cooperate with and assist AATI in connection with such activities. 
  
 2.7 Enforcement of Joint Intellectual Property. 
  
 (a) Enforcement Rights: Subject to the provisions of
this Section 2.7, if either Party reasonably believes that any Joint Intellectual Property is infringed or misappropriated by a third party, such Party shall promptly notify the Development Committee. In such event, GEM shall have the initial right
(but not the obligation) to enforce such technology with respect to such infringement, or defend any declaratory judgment action with respect thereto (for purposes of this Section 2.7, an “Enforcement Action”). AATI shall cooperate
and joint such Enforcement Action. If GEM chooses not to enforce the patent, AATI may request GEM to enforce the applicable Intellectual Property. 
  
 (b) Initiating Actions: If GEM fails to initiate an Enforcement Action within sixty (60) days of AATI’s request, AATI may
initiate an Enforcement Action against such infringement or misappropriation and GEM shall cooperate in such Enforcement Action. The Party initiating or defending any such Enforcement Action shall keep the other Party reasonably informed of the
progress of any such Enforcement Action, and such other Party shall have the right to participate with counsel of its own choice. The Parties shall share equally in all costs and expenses incurred in any such Enforcement Action, except as set forth
in Section 2.7 (c) below. In settling any Enforcement Action, neither Party shall enter into any agreement, license or settlement that materially affects the other Party’s rights or interests without such Party’s written consent, which
consent shall not be unreasonably withheld. 
  
 (c) Recoveries: Any recovery received as a result of any Enforcement Action to enforce the Joint Intellectual Property under this Section 2.7 shall be used first to reimburse the Parties for the costs and expenses (including
attorneys’ and professional fees) incurred in connection with such Enforcement Action, and the remainder of the recovery shall be shared equally between the Parties; provided, however, if either Party has requested not to share in the
costs and expenses of the Enforcement Action and the Party prosecuting such action has agreed to such request, the other Party prosecuting such action retain one hundred percent (100%) of the amounts recovered in such Enforcement Action. 

 
 2.8 No Implied Transfer of Intellectual Property: Except for the
limited licenses granted regarding Joint Intellectual Property herein, nothing in this Agreement shall transfer any right title or interest in any Intellectual Property owned, conceived, or created solely by GEM to AATI. Conversely, except for the
limited licenses granted regarding Joint Intellectual Property herein, nothing in this Agreement shall transfer any right title or interest in any Intellectual Property owned, conceived, or created solely by AATI to GEM. 
  

	3.	DEVELOPMENT COMMITTEE 

  
 The PARTIES shall establish a joint development committee (hereinafter “Development Committee”), which has the overall responsibility for
providing oversight for the joint development effort outlined in this Agreement. The composition, operation, detailed responsibilities, and limits upon the authority of the Development Committee shall be as follows: 
  
 3.1 Membership: The Development Committee shall be composed of one (1)
representative of GEM and one (1) representative of AATI. An alternate from each Party shall be also nominated, who in case of absence of a Party’s representative shall be fully empowered to act on behalf of the Party. Each 

  

 
Party may replace its representatives and the alternate upon giving notice to the Chairman and the other Party. 
  
 3.2 Meetings: The Chairmanship of the Development Committee shall be
alternated between the Parties every six calendar months with GEM chairing the Development Committee from January 1 through June 30, and AATI chairing such Development Committee from July 1 through December 31 of each year. Meetings of the
Development Committee shall be held, in principle, at least quarterly, but should circumstances so require, a meeting may be convened at any time at the request of either of the Parties hereto. The decisions of the Development Committee shall be
made by unanimous agreement and shall be binding on the Parties subject to each Party’s executive management’s or Board of Director’s approval, if any, and then represent their decisions under this Agreement. The Chairman shall
prepare minutes of each meeting of the Development Committee and shall distribute copies to each Party in a timely manner. Such minutes shall be deemed to have been accepted by the Parties unless changes are requested in writing within thirty (30)
days of distribution. Such minutes (as amended and accepted by each Party) shall represent a complete and representative record of the decisions made by the Development Committee. Any development activities not covered by this Agreement may be
considered or investigated by the Development Committee, but neither Party shall have an obligation to participate in such development and such development activities shall be governed by a separate agreement in writing between AATI and GEM. In such
cases, the Development Committee can recommend allocation of costs, division of responsibilities, and ownership rights of such Intellectual Property not covered by this Agreement, as detailed in said separate agreement acknowledged and approved by
both AATI and GEM. 
  
 3.3 Limitations on the Power of the
Development Committee: Except as expressly provided for elsewhere in this Agreement, the Development Committee shall have no power to alter or vary any of the provisions of this Agreement nor to dissolve the Development Committee nor take any
action contrary to the intent or terms of this Agreement. The Development Committee shall not have the power to incur expenditure or financial liability on behalf of the Parties beyond that provided by this Agreement; provided, however, that the
Development Committee can agree upon new tasks to be delegated to each of the Parties not originally specified in Annex A-l or Annex B-l and propose such tasks to the Parties. Each Party can only be bound to perform any such additional task upon its
written consent thereto, which agreement may be provided in its sole discretion. THE DECISION MAKING POWERS OF THE DEVELOPMENT COMMITTEE SHALL NOT SUPERSEDE THE PREROGATIVE OF EITHER PARTY TO ACT UNILATERALLY AS PROVIDED BY THIS AGREEMENT OR AS
OTHERWISE PROVIDED BY LAW. 
  

	4.	SUPPLY AGREEMENT OF CO-DEVELOPED PRODUCTS 

  
 Some of the Products, Processes, and Joint Intellectual Property resulting from the co-development effort of GEM and AATI will or may result in
manufactured products or be used in manufacturing services. Depending upon the parties mutual agreement, (i) in some instances GEM may serve the role of a manufacturing subcontractor to AATI and to other semiconductor product companies, (ii) in some
instances GEM may license other packaging, assembly, test, and backend-manufacturing subcontractors as a second source (or conceivably as a primary or sole source) of a package or service using Joint Intellectual Property or (iii) in some instances,
AATI may also be a customer of GEM licensed suppliers. The parties intend to enter into a definitive Supply Agreement within one year of the date of this Agreement. 
  
 4.1 Intent of Supply Agreement: The intent of this Section 4 is to ensure that in the event that GEM (or a licensed
subcontractor of GEM) manufactures and supplies Products, Processes or related 

  

 
services to customers using know-how based on cooperative development efforts of GEM and AATI or utilizing Joint Intellectual Property pursuant to this
Agreement, that AATI shall have access to buy said Products, practice or have practices such Processes and manufacturing services from GEM meeting prescribed guarantees for capacity, pricing, delivery and other quantifiable deliverables. 

 
 4.2 Decision to Manufacture Product: For each Product under this
Agreement, GEM has the right-of-first refusal to manufacture said Product. GEM is under no obligation to produce such Products. 
  
 (a) In the event that GEM elects to mass-produce the aforementioned Product, it will inform AATI of its intent to do so and estimate the
timing of mass production (“Manufacturing Date”). GEM will then use commercially reasonable effort to meet the production schedule for mass production. 
  
 (b) In the event that GEM elects not to mass-produce the aforementioned Product, GEM will seek to establish
one or more qualified alternate source (“Alternate Sources”) or alternatively assist AATI in doing same. The Alternate Source subcontractor will be licensed to manufacture the Product for AATI and any other customers that GEM wishes
to supply through its Alternate Sources. 
  
 4.3 Production
Success Criteria: In the event that GEM elects to mass-produce the aforementioned Product pursuant to 4.2(a) above, the Development Committee shall set forth reasonable conditions which define when commercially-ready Products have been produced
(the “Manufacturing Success Criteria”). GEM will then use commercially reasonable effort to meet the production schedule for mass production and to meet the Manufacturing Success Criteria. 
  
 (a) To the extent that the Parties cannot agree whether
either the Manufacturing Success Criteria have been achieved, or in the event that GEM is no longer able to provide the Products, the Executive Management of GEM and AATI will meet within thirty (30) days thereafter to seek remedies. 
  
 (b) In the extreme case where the Parties cannot agree
whether either the Manufacturing Success Criteria have been achieved even after the meeting specified in 4.3(a), the matter shall be resolved through arbitration in accordance with Article 9 hereof. 
  
 4.4 Supply Terms: The following terms describe the Parties’
obligations concerning the purchase and sale of the Products: 
  
 (a) Supply. GEM hereby agrees to sell to AATI on a non-exclusive basis and AATI hereby agrees to buy on a non-exclusive basis from GEM the Product developed under the Agreement [***]. 
  
 (b) Second Source Establishment. Upon or at any time
after a Product meets its Product Success Criteria and its Manufacturing Success Criteria or is otherwise accepted by AATI (the “Release to Manufacturing Date”), AATI may establish, or in its option have GEM establish, a second
source (the “Second Source”) to manufacture such Product for AATI and for other customers GEM may wish to supply using said Second Source. Within sixty (60) days after AATI’s request, GEM shall select an unaffiliated
third-party outsourcing company that is reasonably acceptable to AATI and qualified to manufacture anticipated quantities of the Product for AATI. AATI shall be entitled to establish, or have established, a Second Source for each Product developed
under this Agreement. In addition, if at any time AATI reasonably objects to a Second Source (including, without limitation, because the Second Source has 
  

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manufactured Products for AATI of unacceptable quality), AATI may establish, or have established, another Second Source. 
  
 (c) [***]. Notwithstanding the establishment of a Second
Source under Section 4.4(b) and so long as GEM offers the Products on competitive terms, AATI shall [***] GEM, and GEM agrees to [***] AATI the Product [***]. To the extent that a Second Source is established under Section 4.4(b), AATI cannot source
any Products during the term of this Agreement from the Second Source for [***] than those contained herein for equivalent volumes and terms than those contained herein [***] to GEM for all Products purchased hereunder. 
  
 (d) Alternate Source Establishment. To the extent
that GEM and any GEM qualified Alternate Sources are unable or unwilling (e.g., change of control, change of corporate goals, lack of capacity) to satisfy all of AATI’s orders for the Products at any time during the term of this Agreement after
the Production Success Date, GEM agrees that AATI may, in its reasonable select and utilize alternative sources to provide AATI with such additional capacity (the “Alternate Sources”), and GEM Services agrees to provide appropriate
licenses for such additional capacity. 
  

	5.	LIMITATION OF LIABILITY 

  
 EXCEPT FOR A BREACH OF SECTION 6 (CONFIDENTIALITY), IT IS EXPRESSLY AGREED THAT IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INDIRECT,
CONTINGENT OR CONSEQUENTIAL LOSS OR DAMAGE (INCLUDING, WITHOUT LIMITATION, LOSS OF CONTRACT, LOSS OF BUSINESS, LOSS OF REVENUE, LOSS OF GOODWILL, LOSS OF MARKET, LOSS OF PROFIT OR LOSS OF ANTICIPATED PROFIT), EXPENSE OR COST WHATSOEVER OR HOWSOEVER
SUFFERED OR INCURRED, WHETHER OR NOT THE SAME ARE FORESEEABLE AND WHETHER ARISING IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, RELATING TO OR ARISING OUT OF PERFORMANCE OF THIS AGREEMENT OR PURSUANT TO THIS AGREEMENT, EVEN IF EITHER PARTY
HAD BEEN ADVISED, KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY THEREOF. AS LONG AS THE PARTIES USE COMMERCIALLY REASONABLE EFFORTS IN CONNECTION WITH THE DEVELOPMENT EFFORTS CONTEMPLATED HEREIN, NEITHER PARTY SHALL HAVE ANY LIABILITY TO THE OTHER
SOLELY AS A RESULT OF THE FAILURE TO ACHIEVE THE PRODUCT SUCCESS CRITERIA. 
  

	6.	PROPRIETARY INFORMATION 

  
 In furtherance of the purposes of this Agreement, the Parties contemplate that it may be advantageous and/or necessary to exchange proprietary
information. The Parties wish to protect such proprietary information from unauthorized use and disclosure and accordingly the Parties hereby agree as follows: 
  

6.1 Subject to the terms of this Agreement, neither Party shall disclose to any person or persons outside its corporation or to any person or persons
within its corporation not having a need to know for the purposes of this Agreement any non-public, proprietary information: (1) which the other Party submits in writing or electronically and designates by an appropriate stamp, marking or legend
thereon to be of a proprietary nature; or (2) which the other Party orally or visually submits and identifies as proprietary provided that in the case of oral or visual disclosure the submitting Party notifies the receiving Party in writing,
specifically identifying any such proprietary information so orally or visually submitted within 
  

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thirty (30) days of the oral or visual disclosure (hereinafter referred to as “Proprietary Information”). In addition, a receiving Party
shall use the Proprietary Information except as permitted under the terms of this Agreement. 
  
 6.2 The Parties shall take appropriate action to provide for and prevent the unauthorized disclosure of Proprietary Information in accordance with Section 6.1 above. A Party shall not be liable for disclosure of any
such Proprietary Information if the same is: (1) in the public domain or becomes available to the public through no wrongful or negligent act or omission on the receiving Party’s part; or (2) properly known to or independently developed by the
Party in receipt of such Proprietary Information prior to disclosure; or (3) disclosed to the receiving Party by a third Party without any obligation of confidentiality; or (4) disclosed to the receiving Party by the other Party without any
obligation of confidentiality; or (5) independently developed by the receiving Party without the use of Proprietary Information received hereunder and there is adequate evidence to demonstrate such condition; or (6) disclosed by the receiving Party
with the prior written approval of the disclosing Party. 
  
 6.3
Each Party agrees to use its best efforts to minimize any damage resulting from inadvertent or accidental disclosure of Proprietary Information. 
  
 6.4 Each Party agrees that upon expiration or termination of this Agreement, reasonable recall by the disclosing Party, or request for destruction by the
disclosing Party, the receiving Party shall promptly return to the disclosing Party any Proprietary Information provided by such disclosing Party. The Parties acknowledge and agree that certain Joint Intellectual Property may be deemed Proprietary
Information and that following termination or expiration of this Agreement, each party may use Residuals of such Proprietary Information; provided however each party acknowledges and agrees that no licenses are granted under either party’s
copyrights or patent rights under this Section 6.4. For the purposes of this Agreement, Residuals means that information which is retained in the memory of those persons that had authorized access to the Proprietary Information under this Agreement.

  
 6.5 The Parties’ obligations to protect Proprietary
Information disclosed in accordance with this Agreement prior to its termination shall survive termination of this Agreement. 
  
 6.6 In the event any governmental or judicial order requires the disclosure of Proprietary Information, the recipient of such Proprietary Information
shall promptly and, if possible, prior to such disclosure notify the originator of the Proprietary Information of the requirement and provide reasonable aid and assistance if the originator decides to oppose such governmental or judicial order. The
recipient shall not be liable for any disclosure of Proprietary Information made pursuant to such governmental or judicial order if it has complied with the provisions of this paragraph. 
  
 6.7 The terms of this Article 6 shall also apply to any Proprietary Information disclosed between the Parties during the
course of the relationship between them before the date of this Agreement. Notwithstanding anything in this Section 6, either Party may disclose the terms and conditions of this Agreement: (i) to legal counsel of the Parties; (ii) in confidence, to
accountants, banks, and financing sources and their advisors; (iii) in connection with the enforcement of this Agreement or rights under this Agreement; or (iv) in confidence, in connection with an actual or proposed merger, acquisition, or similar
transaction. 
  

	7.	TERM AND TERMINATION 

  
 7.1 Term: Unless earlier terminated pursuant to Section 7.2 hereof, this Agreement shall expire upon the completion of performance by the Parties
of their responsibilities under this Agreement (the “Completion Date”). 
  
 7.2 Early Termination of the Agreement: The Agreement can be terminated at any time prior to the Completion Date upon any of the following events: (a) by the mutual written agreement of the Parties; or (b) by
either Party if the Product Success Criteria for the initial Product has not occurred (or has not been waived in writing by both Parties) on or prior to five (5) years from the date of this Agreement; or (c) by either Party in the event that the
other Party breaches, in any material respect, any of the terms of this Agreement and does not cure such breach within a forty-five (45) day cure period following written notice of such breach from the other Party; provided, however, the failure to
satisfy the Product Prototype Success Criteria or the Product Commercial Success Criteria will not be deemed a breach by either Party as long as the Party has used commercially reasonable efforts. 
  

	8.	GOVERNING LAW 

  
 This Agreement shall be governed and interpreted in accordance with the laws of the State of California without regard to any conflicts of law provisions
contained therein. 
  

	9.	SETTLEMENT OF DISPUTES 

  
 9.1 Dispute Resolution: In the event of any dispute, difference or claim arising out of or relating to this Agreement or the performance,
enforcement, breach, termination or validity thereof (a “Claim”), the Parties shall use their best endeavors to settle such Claim. To this effect, they shall consult and negotiate with each other, in good faith and understanding of
their mutual interests, to reach a just and equitable solution satisfactory to both Parties. If they do not reach such solution within a period of thirty (30) days, then the Claim shall be finally settled by arbitration administered by and in
accordance with the rules of American Arbitration Association (the “AAA”) for Commercial Cases, as such rules exist on the date of the arbitration. Notwithstanding, either Party is entitled to seek equitable remedies from a court of law.

  
 9.2 Venue. The exclusive place for any Claim shall be
arbitration in San Jose under the rules and auspices of the American Arbitration Association for Commercial Cases; provided, however, that a Party is entitled to seek equitable remedies from a court of law having jurisdiction. 
  

	10.	ASSIGNMENT 

  
 Neither Party shall assign this Agreement or any rights or obligations hereunder in whole or in part to any third Party without the prior written consent
of the other Party, and no purported assignment by either Party shall be binding on the other Party without such written consent; provided, however, either Party can, without the prior written consent of the other, assign its rights and
obligations hereunder to any affiliate of the Party. 
  

	11.	PUBLICITY 

  
 Neither Party shall issue a news release, advertisement, public announcement or any other form of publicity concerning this Agreement or the other
Party’s efforts in connection with this Agreement without prior written consent of the other Party. The Parties may issue news releases, advertisements, public 

  

 
announcements and other forms of publicity concerning this Agreement from time to time, and each Party agrees to not unreasonably withhold its consent to
such publicity. 
  

	12.	AMENDMENTS 

  
 Any amendments or modifications to this Agreement and/or Annexes must be made in writing by both Parties and executed by a duly authorized representative
of each Party. 
  

	13.	NOTICES 

  
 All Notices, requests, demands and other communications shall be given to or made upon the respective Parties as follows: 
  

			
	If to GEM:	  	If to AATI:
		
	 GEM Services, Inc.
 43170 Osgood Road
 Fremont, CA 94538
	  	 Advanced Analogic Technologies, Inc.
 1250 Oakmead
Parkway, Suite 310
 Sunnyvale, CA 94086

		
	 Attention: Richard Kulle
	  	Attention: Richard K. Williams

  
 The address for giving notice or point
of contact may be changed by complying with the written notice provisions of this Article. All notices, requests, demands and other communications given or made concerning the terms of this Agreement shall be in writing and shall be given either by
mail or fax and shall become effective on the date received by the receiving Party if given by mail or on the date of transmission if given by fax (confirmation retained). 
  

	14.	FORCE MAJEURE EVENT 

  
 Nonperformance of either Party shall be excused to the extent that performance is rendered impossible by strike, fire, flood, governmental acts or orders
or restrictions, or any other reason where failure to perform is beyond the reasonable control of the non-performing Party (each a “Force Majeure Event”). The Party whose performance is affected by a Force Majeure Event shall use
reasonable efforts to: (i) avoid, remove, or minimize the impact of such event on its performance and other obligations; and (ii) recommence performance of its obligations at the required level as soon as possible. If either Party is, or anticipates
it is likely to be, delayed or prevented from performing its obligations in connection with a Force Majeure Event, such Party shall promptly notify the other Party by telephone with confirmation in writing within two (2) business days after the
inception of such delay. 
  

	15.	COMPLIANCE WITH LAWS 

  
 15.1 This Agreement is not intended to require, and will not require, any Party to violate any applicable laws or regulations of the U.S., or any other
country or jurisdiction, including without limitation, the export control laws of the United States. 
  
 15.2 The Parties understand and agree that both Parties are subject to all applicable laws and regulations of the U.S. and certain other countries with
respect to the export and use of technology exported from such countries. Without limiting the generality of the foregoing, the Parties shall, to the extent 

  

 
necessary, obtain the prior written approval of the competent authorities of the U.S., or any other country having proper jurisdiction, before any technology
may be resold, sublicensed, diverted, transferred, transshipped, reshipped, or re-exported to, or used in, any country for any purpose other than as described on the applicable export license. 
  

	16.	SURVIVAL OF PROVISIONS 

  
 Notwithstanding any termination of the Agreement, the Parties’ obligations with respect to Article 2 - Intellectual Property, Article 4 - Supply
Agreement, Article 5 - Limitation of Liability, Article 6 - Proprietary Information, Article 7 - Termination, Article 8 - Governing Law, Article 9 - Settlement of Disputes and Article 17 - Equitable Remedies shall survive any such termination and
shall bind the Parties, their successors, their assigns, and their legal representatives. All licenses and sublicenses granted under Section 4.4 shall survive any termination or expiration of this Agreement. 
  

	17.	EQUITABLE REMEDIES 

  
 The Parties acknowledge that remedies at law may be inadequate to protect each other against any actual or threatened breach of this Agreement, and, that
either Party may apply to seek injunctive relief for a material on-going breach of this Agreement. 
  

	18.	ENTIRE AGREEMENT 

  
 This Agreement and Annexes hereto contain the entire understanding and agreement between the Parties with respect to the subject matter hereof and
supersedes any previous proposals, understandings, commitments or representations whatsoever, oral or written. 
  

	19.	WAIVER 

  
 No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel to enforce any provision of this Agreement,
except by written instrument of the Party charged with such waiver or estoppel. 
  

	20.	MULTIPLE COUNTERPARTS 

  
 This Agreement may be executed in separate or multiple counterparts, each of which shall be deemed an original, but all of which together shall be
considered as one and the same agreement. 
  

	21.	SEVERABILITY 

  
 In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any
respect, such provision will be enforced to the maximum extent permissible so as to effect the intent of the Parties, and the remainder of this Agreement will continue in full force and effect. The Parties shall negotiate in good faith an
enforceable substitute provision that most nearly achieves the intent and economic effect of such invalid or unenforceable provision. 
  

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by their duly authorized
representatives. 
  

									
	 	 	 	 	 AATI

					
	By:	 	 /s/ R. J. Kulle
	 	 	 	By:	 	 /s/ Richard K. Williams

	 Name:
	 	 R. J. Kulle
	 	 	 	 Name:
	 	 Richard K. Williams

	 	 	 President & CEO
	 	 	 	 Title:
	 	 President & CEO/CTO

	 Date:
	 	 6-1-99
	 	 	 	 Date:
	 	 June 1, 1999

  

  
 ANNEX A-1 

PLAN & PRODUCT SUCCESS CRITERIA 
  

			
	 Product to Develop (name)
	  	 JW-Type Packages

		
	 Brief Description
	  	 J-lead (reverse gull-wing) plastic surface mount package
 Widebody to expand package cavity
 SC70 footprint & TSOP footprint packages
 Tighter pin pitch than conventional low pin count packages
 Improved thermal resistance (more grounded pins)
 Low profile

		
	 Product Success Criteria
	  	 Die to package footprint area ratio over 35%
 Thermal
resistance junction to board < ?
 8 pins for SC70 form factor
 12 pins for TSOP form factor
 Height not to exceed 1.1 mm
 Meets industry-standard suite of package qualification tests

		
	 Development Plan
	  	 J-lead (reverse gull-wing) plastic surface mount package
 Widebody to expand package cavity
 SC70 footprint & TSOP footprint packages
 Tighter pin pitch than conventional low pin count packages
 Improved thermal resistance (more grounded pins)
 Low profile

		
	 	  	 Multiple Patents Applications
 Mass Production of
8-pin SC70
 Mass Production of 12-pin TSOP
 Mass Production of
8-pin TSOP

		
	 Target Release to
 Manufacturing Date
	  	 SC70JW: TBD
 TSOP12JW: TBD
 TSOP8JW: TBD

  

  
 ANNEX B-1 

 
 PRODUCT DEVELOPMENT PLAN & PRODUCT SUCCESS CRITERIA 

 

			
	 Product to Develop (name)
	 	 TBD

		
	 Brief Description
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 Product Success Criteria
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 Development Plan
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 Reduction To Practice
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 Target Release to
 Manufacturing Date
	 	 

  

  
 ANNEX C-1 

 
 INTELLECTUAL PROPERTY 
  
 GEM Owned-JW Package and Packaging Related-Joint Intellectual Property

  

									
	 TTC Ref
 Country
 ATTY(s) Handling

	  	 Client’s Ref

	  	 Title

	  	 Inventor

	  	 Application
 No.
 Filing Date

					
	 020964-000100US
 KJT (RTO)
	  	TSSOP-8J	  	 Surface Mount
 Package
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/143227
 06/08/01

					
	 020964-000200US
 KJT (RTO)
	  	 	  	 Surface Mount
 Package
	  	 Harden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 60/291212
 05/15/01

					
	 020964-000210US
 KJT (RTO)
	  	 	  	 Surface Mount
 Package
	  	 Harden, James
 Williams.
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 09/895478
 06/29/01

					
	 020964-000300US
 KJT (RTO)
	  	2928-6J	  	 Surface Mount
 Package
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/141964
 05/15/01

					
	 020964-000400US
 KJT (RTO)
	  	2828-8J	  	 Surface Mount
 Package
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/141963
 05/15/01

					
	 020964-000500US
 KJT (RTO)
	  	2021-8J	  	 Surface Mount
 Package
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/141966
 05/15/01

					
	 020964-000600US
 KJT (RTO)
	  	SOT-2303J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145235
 07/17/01

					
	 020964-000700US
 KJT (RTO)
	  	 2021-8J
 Lead Frame
	  	 Surface Mount
 Package Leadframe
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/143226
 06/08/01

  

									
	 TTC Ref
 Country
 ATTY(s) Handling

	  	 Client’s Ref

	  	 Title

	  	 Inventor

	  	 Application
 No.
 Filing Date

					
	 020964-000800US
 KJT (RTO)
	  	2928-SJ	  	 Surface Mount
 Package
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/142096
 05/18/01

					
	 020964-000900US
 KJT (RTO)
	  	 J Lead Form
 Design
	  	 Surface Mount
 Package Lead
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/142106
 05/18/01

					
	 020964-001000US
 KJT (RTO)
	  	 J Lead
 FootDesign
	  	 Surface Mount
 Package Lead Foot
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/142111
 05/18/01

					
	 020964-001100US
 KJT (RTO)
	  	 J Lead
 Notch
 Design
	  	 Surface Mount
 Package Body
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/142097
 05/18/01

					
	 020964-001200US
 KJT (RTO)
	  	Micro-8J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145233
 07/17/01

					
	 020964-001300US
 KJT (RTO)
	  	Micro-12J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145234
 07/17/01

					
	 020964-001400US
 KJT (RTO)
	  	3528-14J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145236
 07/17/01

					
	 020964-001500US
 KJT (RTO)
	  	SC-70-3J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145292
 07/18/01

					
	 020964-001600US
 KJT (RTO)
	  	2928-12J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145237
 07/17/01

  
 AATI Owned Non-Package-Joint
Intellectual PropertyWafer Foundry Agreement

 Exhibit 10.12 
  

	[***]	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES ACT OF 1933, AS AMENDED. 

  
 Master 
 WAFER FOUNDRY AGREEMENT 
  
 THIS WAFER FOUNDRY AGREEMENT is made effective as of the 4TH day of JUNE, 2002, by and among the Systems I.C. Division of HYNIX SEMICONDUCTOR AMERICA, a California corporation, located at 3101 North First
Street, San Jose, California 95134 hereinafter (“HSA”) functioning as the contract facilitator and limited agent of HSI, and HYNIX SEMICONDUCTOR INC., LTD. (“HSI”) a Republic of Korea
corporation with its principal offices located at San 136-1, Ami-ri, Bubal-eub, Ichon-si, KyoungKi-do, 467-701 Korea, performing as the FOUNDRY, and ADVANCED ANALOGIC TECHNOLOGIES, INC., a California corporation, located at 1250 Oakmead Parkway
Suite 310, Sunnyvale, CA 94086, hereinafter (“CUSTOMER”). 
  
 RECITALS 
  
 WHEREAS, (CUSTOMER)
desires to establish a source for supply of fabricated and / or unprobed wafers and / or probed wafers and / or packaged and tested units; and 
  
 WHEREAS, (CUSTOMER) has created certain design parameters and specifications for its semiconductor wafer requirements; and 
  
 WHEREAS, HSI as a semiconductor wafer fabrication business has manufacturing
capabilities to assist and does desire to assist CUSTOMER in transitioning CUSTOMER’s designs and specifications into fabricated semiconductor wafers; and 
  

WHEREAS, HSA is HSI’s contract facilitator and limited agent to coordinate communications and sales between HSI and CUSTOMER; and 
  
 WHEREAS, upon acceptable completion of the development and productization phases of
CUSTOMER’s semiconductor wafer designs to enable manufacturing (“Fabrication”), CUSTOMER and HSI desire that HSI shall fabricate and deliver production quantities of unprobed wafers, probed wafers and / or packaged and tested units in
accordance with this Agreement and the Exhibits incorporated herein; 
  
 NOW,
THEREFORE, in consideration of these premises, the terms and conditions and exhibits contained herein, the parties hereto agree as follows: 
  
 ARTICLE I 
 DEFINITIONS

  
 Section 1.0. Where set forth in this Agreement, the following terms shall
have the meanings as defined in this Section: 
  
 “Design
Specifications” shall mean the specifications, test vectors, GDSII or MEBES databases and other design parameters and guidelines provided by CUSTOMER to the FOUNDRY as more fully set forth in Exhibit B (Parametric and Other
Specifications), which Exhibit is attached hereto and incorporated herein and all of which shall be of adequate detail and specificity to enable the FOUNDRY to generate other tools, mask sets and other items as customarily necessary to
prepare the product for production. 
  
 “Effective Date” shall mean the
effective date of this Agreement which shall be the date first above written. 
  
 “Exhibit” or “Exhibits” shall mean any and all exhibits to this Agreement, which by this reference are incorporated into and made a part hereof. 
  

 1 

 “Foundry” shall mean, unless otherwise mutually agreed to in writing by the parties, Hynix Semiconductor Inc.,
a corporation of the Republic of Korea. 
  
 “Intellectual Property (IP)”
shall mean, custom design blocks developed by HSI and provided to customer for the propagation of his design and intended for Production at FOUNDRY. 
  
 “Library” shall mean the Foundry supplied libraries and design kits provided to CUSTOMER for the design of Product. 
  
 “Products” shall mean the semiconductor wafers and / or finished turnkey units to
be manufactured under this Agreement as more fully described in the Exhibits hereto. 
  
 “Production” shall mean the volume Fabrication of Products as semiconductor wafers following a written, formal Acceptance and Release For Production by CUSTOMER to HSI and pursuant to a written Volume Purchase Agreement.

  
 “Production Lot” shall mean a total of 25 8 inch wafers and / or 50,
6 inch wafers, processed together at FOUNDRY. 
  
 “Prototype Lot” shall
mean a total of 25 wafers or less processed with special engineering instructions provided by CUSTOMER or FOUNDRY. 
  
 “Proprietary Information” shall mean any and all designs, technical, scientific, marketing or business information or data, engineering know-how, trade secrets,
drawings, artwork, documentation, circuitry, processes, illustrations, mask work, and any other information, whether or not copyrightable or patentable, of any party to this Agreement which is deemed by such party to be confidential and/or
proprietary, including any such Proprietary Information which may be developed by the parties in the future. 
  
 “Risk Production” shall mean the fabrication of Products, prior to formal acceptance of the production units. 
  
 “Target Yield” shall mean an average number of good Products resulting from production wafers agreed to by CUSTOMER and FOUNDRY. 
  
 “Turn Key” shall mean the complete fabrication process which includes, wafer
fabrication, wafer probing, packaging and testing of Products. 
  
 “Wafers” shall mean the silicon discs of varying sizes to be processed by FOUNDRY into semiconductor wafers in accordance with the information supplied by CUSTOMER as specified in Exhibit B. 
  
 ARTICLE II 
 DESCRIPTION OF WORK 
  
 Section 2.0. Agreement to Undertake and Perform Fabrication. FOUNDRY hereby agrees to perform the Fabrication requested by CUSTOMER in accordance with the Design Specifications set forth in Exhibit B and the Development and
Fabrication Schedules set forth in Exhibit A (Scheduling, Quantities and Prices) which is attached hereto and incorporated herein. CUSTOMER hereby acknowledges and agrees that such manufacturing work may be requested through HSA and be
performed by HSI functioning as the FOUNDRY as above defined. In consideration for the performance of such wafer manufacturing work, CUSTOMER agrees to pay through HSA all of the FOUNDRY non-recurring engineering charges (“NRE”) and other
charges at the rates set forth in Exhibit A in accordance with the schedule set forth therein for the specified quantities. 
  

 2 

 Section 2.1. Support. CUSTOMER will in a timely manner against the Development Schedule, provide HSA and the
FOUNDRY with such documentation, specifications and additional engineering support as may be reasonably necessary for the FOUNDRY to complete the productization of the Product in preparation for beginning Production. 
  
 Section 2.2. Changes. CUSTOMER shall promptly notify HSA and FOUNDRY in writing of any
requested additions and desired Exhibit B amendments. If any such addition, deletion or change shall require an adjustment in any schedule for the Design Work or processes that may not be compatible with those of FOUNDRY, any such requested
additions or changes are subject to written acceptance by HSA and FOUNDRY and when accepted, such schedule or Exhibit will also be adjusted according to written changes to the Design Specifications which may become necessary or desirable with
respect to a Product. CUSTOMER will pay any additional charges resulting from any such addition or change. 
  
 Section 2.3. Simulations. CUSTOMER shall perform the pre-layout simulation and post-layout simulation and release to HSA for delivery to FOUNDRY, a GDSII formatted data base tape conforming to FOUNDRY process
design rules and which is subject to acceptance by FOUNDRY. FOUNDRY shall perform design rule checks (“DRC”) on the CUSTOMER database. Should the CUSTOMER database have design rule (DRC) errors, those errors shall be reported in writing
and the data base tape shall be returned to CUSTOMER for correction. Upon completion of an error free design rules check, written authorization of the CUSTOMER and the written acceptance of HSA and FOUNDRY, FOUNDRY shall release the data base for
fabrication of Prototypes. 
  
 ARTICLE III 
 PROTOTYPE UNITS 
  
 Section 3.1. Nonrecurring Engineering Charges (“NRE”). CUSTOMER agrees to pay to HSA for the work performed during the first iteration, described in
Section 3.2, the nonrecurring engineering charges as set forth in Exhibit A. The NRE includes engineering work for unprobed wafers or blind build units as previously agreed to by CUSTOMER and FOUNDRY. 
  
 Section 3.2. Prototype, First Iteration. CUSTOMER shall supply an RTL or GDS database,
as set forth in EXHIBIT B, to the FOUNDRY for fabrication of the Product. FOUNDRY shall fabricate unprobed prototype wafers or blind build units of the Product as set forth in Exhibit B. 
  
 CUSTOMER may subcontract mask making to HSA and FOUNDRY, or HSA may subcontract photomask making to a designated subcontractor. In any case,
the expense, responsibility and ownership of and for the masks remain CUSTOMER’s. If an HSA and FOUNDRY designated photomask subcontractor is used, the subcontractor shall be subject to the non-disclosure terms at least as restrictive as stated
herein and be subject to the written consent of CUSTOMER and HSA, and FOUNDRY. 
  
 CUSTOMER shall have a period of thirty (30) days to inspect the EXHIBIT B Prototypes. Within such thirty (30) day period, CUSTOMER shall provide HSA and FOUNDRY with a written notice of its acceptance or rejection of the Prototypes. The
notice to be provided by CUSTOMER, if a rejection, shall set forth in sufficient and specific detail the reasons for rejection, and such notice shall be accompanied by the return of all of the Prototypes. If written notice of rejection or a request
for additional evaluation time, not to exceed ten (10) business days, is not received by HSA and FOUNDRY within such thirty (30) day period, then the Prototypes are here agreed to have been accepted by CUSTOMER 
  
 Upon receipt by HSA of the Prototypes and a notice from CUSTOMER rejecting the Prototypes,
HSA and FOUNDRY shall evaluate the reasons for the rejection and inspect the Prototypes. 
  

 3 

 If the reasons for rejection are due to a nonconformity of the Prototypes to the PCM data set out in Exhibit
B, or are due to a nonconformity of the Prototypes of the post-simulation layout, then Foundry shall accept responsibility and correct any such nonconformity at its expense. 
  
 In all other cases the Prototypes are here agreed to have been accepted and CUSTOMER shall accept responsibility for the rejection and pay
the balance of the nonrecurring engineering charges at the rates set forth in EXHIBIT A and any additional charges required for a second iteration. 
  
 Section 3.3. Products and Process 
  
 Amendments to electrical test specification limits specified in Exhibit B and in Hynix’s process flows shall only be made upon prior written consent of
CUSTOMER and HSA. 
  
 HSA and FOUNDRY shall process, at CUSTOMER’S expense,
first silicon for each Product meeting process specifications included in Exhibit B. First silicon may include mutually agreed Poly Critical Dimension or any other relevant experiment conditions, in which case the Exhibit B specification is waived
for electrical parameters effected by the split. 
  
 CUSTOMER shall perform or
separately contract wafer sort/probe, assembly, and final test (including production burn-in if appropriate) for the first silicon qualification Lot and provide the test results to HSA AND FOUNDRY within (3) months of receipt date. CUSTOMER shall
perform or separately contract all wafer level, Product and assembly stresses and evaluations required to complete the qualification and provide HSA and FOUNDRY with the results within (3) months. 
  
 Section 3.4. Second Iteration. CUSTOMER shall pay for any correction or modification
to the Prototypes, including, but not limited to the cost of making new masks. In a case where the modification is limited to the metal layers, CUSTOMER shall provide the revision mask layers as required. In a case where the modification is not
limited to the metal layers, CUSTOMER shall pay a dollar amount equal to one hundred percent (100%) of the original nonrecurring engineering charges set forth in Section 3.1. 
  
 Section 3.5. Good Die Pricing Methodology. FOUNDRY & CUSTOMER agree to a target die price, based on the projected good die yield
as stated in Exhibit A. The final die price may be adjusted up or down depending on results of the margin rating and verified by the yield from 10 lots of 25 or 50 wafers each initially, for pre-qualification risk production, product
will be ordered and invoiced by wafer level pricing. Successful margin rating is defined as a valid skew lot definition and execution, a minimum of 10 lots of wafers processed correctly, using the process technology described in Exhibit
B, in accordance with Hynix’s PCM Acceptance Criteria, and achievement of mutually acceptable yield results. At Hynix’s option, any changes to the test program or product design may require a new margin rating. 
  
 Section 3.6. Yield Improvement: Risk wafers for yield improvement will be ordered and
invoiced by wafer level pricing. FOUNDRY will accept responsibility for maintaining it’s process within the prescribed limits of the electrical rules and physical layout rules as documented in FOUNDRY’s design rules, including pre-approved
design rule waivers for custom IP, and responsibility for systemic defects, for example, (cd’s, film thickness, implant doses, etc.) as evaluated by the PCM data and random defects (particles) 
  
 CUSTOMER will accept responsibility for the design meeting FOUNDRY’S electrical and
physical design rules per specifications listed in Exhibit B. 
  
 Section
3.6. Turnkey. HSA and FOUNDRY may subcontract assembly and test to a designated subcontractor. If an HSA and FOUNDRY designated Assembly and Test subcontractor is used, the subcontractor shall be subject to the non-disclosure terms at least
as restrictive as stated herein and be subject to the written consent of CUSTOMER. 
  

 4 

 ARTICLE IV 
 PURCHASE OF VOLUME PRODUCTION PRODUCTS 
  
 Section 4.1. Purchase Orders. Purchase orders shall be issued by CUSTOMER to HSA, at its address above provided and shall reference HSA’s Volume Production Sales Agreement terms and conditions as controlling except for those
items specified and separately agreed to by HSA on the face of CUSTOMER’s purchase order form. HSA reserves the right to negotiate CUSTOMER credit standing, purchase order pricing, volume and schedule. A copy of HSA’s Volume Production
Sales Agreement is attached hereto as Exhibit C. HSA will not accept purchase orders for volume production without CUSTOMER’s prior written confirmation of its acceptance of the Prototype. Purchase orders accepted by HSA for Product
prior to written acceptance of Prototype are agreed to be Risk Production units as set forth in Section 4.4. 
  
 CUSTOMER shall place purchase orders for the Production Product with the volume and delivery requirements for the three (3) month period following the date for which the Production Product will be available for
delivery. Thereafter, the first week of each successive month after issuance of the initial purchase order, CUSTOMER shall issue additional purchase orders and/or amendments so that HSA shall continue to have on a revolving basis, firm purchase
orders effective for the next immediate succeeding three months following the issuance of such additional purchase orders. Each purchase order shall obligate CUSTOMER to purchase at least the minimum of 2 (25 or 50 wafers per lot) wafer lots or
units equivalent to 2 lots. No purchase order shall require delivery of any Product earlier than ninety (90) days from the effective date of the purchase order without prior written approval from HSA. Every such purchase order shall contain such
unit pricing, delivery and quantity terms as accepted in writing by HSA. The purchase and sale of Products between CUSTOMER or CUSTOMER’s approved agents, if any, and HSA shall be governed solely and exclusively by this Agreement, and
HSA’s Volume Production Sales Agreement, which shall supersede the terms and conditions contained in any purchase order, acknowledgment or other document related to the purchase and sale of Products, all of which terms and conditions are hereby
expressly waived. 
  
 Section 4.2. Changes in Purchase Orders. Changes to
firm purchase orders to decrease the quantity or to increase the quantity, price or delivery schedule within ninety (90) days of shipment, may be made only with the prior written consent of HSA. CUSTOMER shall not increase or decrease the volume of
Products by more than fifty percent (50%), unless otherwise consented to in advance by HSA, and in any event such changes shall not decrease the volume for any month to less than the minimum release quantities set forth in Exhibit C. Any
increase in volume in a purchase order for Product that is scheduled to ship in less than ninety (90) days will only be granted as a pull-in from Product for which orders were placed and Product is available for delivery. 
  
 The Purchase Orders and Forecasts for Product not scheduled to ship within the following
ninety (90) days, may be increased or decreased from the FOUNDRY Capacity Commitment in accordance with the following schedule: 
  

									
	 Month 1 – 3

	 	 Month 4,

	 	 Month 5,

	 	 Month 6,

	 	 Month 7 – 12

	Firm	 	10%	 	30%	 	50%	 	100%

  
 Section 4.3. Forecasts. With
each new Purchase order, CUSTOMER shall provide HSA with a rolling forecast of CUSTOMER’s future Product needs for the next succeeding six (6) months per Section 4.2. CUSTOMER shall submit the forecast so that it is received by HSA by the first
of each month. HSA will review the forecast and confirm the Capacity Commitment within the ten (10) days following receipt of CUSTOMER forecast. 
  

 5 

 Section 4.4. Risk Orders. Purchase Orders for volume production of Product prior to CUSTOMER’s written
acceptance of the Prototype or completed qualification are Risk Orders. Manufacturing shall only guarantee its workmanship based upon the wafer Process Control Monitors’, “PCM” data as specified in Exhibit B. CUSTOMER
agrees to accept this Product without exception. Cancellation of Risk Orders are subject to charges as described in Section 4.3. 
  
 Section 4.5. Cancellations. Cancellation of any purchase order for a Risk Order, shall be made by CUSTOMER only upon thirty (30) days, prior written notice to HSA.
Upon cancellation, HSA shall invoice CUSTOMER and CUSTOMER shall pay for all Risk Order wafers and units in process as defined below: 
  
 Risk Order Pricing on Order Cancellation: 
  

			
	Per Wafer	 	All technologies
	a. Prior to wafer start:	 	No Charge
	b. After wafer start:	 	100%

  
 Section 4.6. Pricing, Minimum
Orders. Pricing for the Products to be fabricated by FOUNDRY shall be as set forth in Exhibit A. Prices for Products for any firm commitments in any purchase orders shall be fixed and not subject to increase. Unit prices shall include all
applicable taxes. Minimum ordering quantities and minimum release quantities are set forth in Exhibit A. No orders shall be accepted, and no Products released unless such orders and releases are at least equal to or greater than the minimum
quantities set forth in Exhibit A. 
  
 Section 4.7. Shipping Terms.
Products ordered by CUSTOMER will be delivered F.O.B. HSI’s facilities located in the Republic of Korea. Title and risk of loss will be transferred upon delivery of Products by HSI to a common carrier designated by CUSTOMER. 
  
 Section 4.8. Payment Terms. Payments are Net 30 Days for all shipments of Product
where the accumulated sum of all outstanding invoices does not exceed CUSTOMER’s pre-approved credit limit. 
  
 Section 4.9. Credit Limit. As a condition precedent to HSA and FOUNDRYs’ duties under this Agreement, CUSTOMER agrees to apply for and provide all information
requested by HSA to establish a satisfactory credit limit. 
  
 CUSTOMER credit
requirements which do not meet or exceed the credit limit authorized by HSA, shall be secured through the establishment, with HSA as beneficiary, of an Irrevocable Standby Letter of Credit or other financial mechanism which HSA in its sole
discretion may require, in the amount equal to the additional desired credit. HSA shall provide written notice to CUSTOMER, prior to HSA’s accessing such Letter of Credit. 
  
 Section 4.10. Contractor Assembly Company To Buy Product. 
  
 A (CONTRACTOR), if any, which contracts with CUSTOMER for assembly/packaging on CUSTOMER’s behalf, may buy Production Product directly
from HSA upon CUSTOMER’s advance written authorization, guarantee of payment and HSA’s agreement thereto. In a case where a CONTRACTOR wishes to place an order with HSA, the method of payment, place of delivery terms and other conditions
may be different from those already in place under CUSTOMER purchase orders. Similarly, CONTRACTOR’s creditworthiness will be subject to HSA’s prior approval. Such differences will be agreed upon independently between HSA and CONTRACTOR,
but all the other terms and conditions in a CONTRACTOR’s purchase order shall be of no effect and completely subordinate to those in this Agreement and in HSA’s Volume Production Sales Agreement. 
  

 6 

 Section 4.11. Hold Terms 
  

Should CUSTOMER place a production lot on hold for reasons other than yield improvement and the Wafer Bank Plan as listed in Exhibit C, CUSTOMER shall pay HSA a hold
fee of one hundred dollars ($100) for each calendar day that a Production Lot is held. Production Lots may be held only at certain manufacturing steps. Hynix will provide notice to CUSTOMER with respect to such manufacturing steps. The cumulative
maximum number of days that a Production Lot may be held is 60 days. There is no charge for holding prototype lots although prototype lots cannot be held for longer than 30 days. 
  
 Section 4.12. Line Audit. Upon the written request of CUSTOMER, HSA and FOUNDRY agree to hold a line audit on a mutually agreed
basis. 
  
 Section 4.13. Changes in Manufacturing. HSA and FOUNDRY must
obtain CUSTOMER’S written approval before changing manufacturing sites or making major changes to the process for any of CUSTOMER’S Products where HSA and FOUNDRY has been qualified or where CUSTOMER is in the process of qualifying HSA and
FOUNDRY. 
  
 In the event that during the term of this Agreement, FOUNDRY finds it
necessary to shut down any CUSTOMER product lines in FOUNDRY’S fabs located at Chung Ju, Ichon or Gumi, FOUNDRY agrees to provide CUSTOMER with 6 months’ written notice 
  
 CUSTOMER shall have the option, as specified in the following subparagraphs, to halt and scrap partially fabricated Risk Production and
Production Wafers, paying HSA according to the following formula: 
  
 Scrap Price = (% of process completed x Wafer Price) 
  

			
	 % Complete

	 	 Process Point

	50%	 	Before LDD Photo/Implant
	70%	 	Before Metal-1 Photo
	100%                        	 	After Metal-1 Photo

  
 Section 4.14. Lot Identification
and Visual Inspection. Prior to shipping Wafer Lots, HSA will meet the following criteria: 
  
 1) Wafer Lot Identification - All Production Lots shipped to CUSTOMER will be scribed with the correct Lot identification number as provided by CUSTOMER
or FOUNDRY. CUSTOMER will provide lot ID in case FOUNDRY needs to experiment at its own cost. The wafer scribe shall meet the specification as defined by CUSTOMER or FOUNDRY. 
  
 2) Visual Inspection – FOUNDRY shall perform visual inspection based upon the Visual Inspection Procedure as stated in
Exhibit B and which may be updated by FOUNDRY with/without notice to CUSTOMER. 
  
 Section 4.15. Parametric Wafer Testing. FOUNDRY will perform standard Parametric test sampling (PCM testing) and accept/reject plan as defined in Exhibit B. The wafer sites must be tested for each parameter defined in
Exhibit B. CUSTOMER and HSA and FOUNDRY will work together in confirming those parameters in Exhibit B that may be marginal, and adjust such parameters. 
  
 Section 4.16. Return of Products. All Lots delivered by HSA shall be subject to incoming inspection and testing on a monitoring basis
by CUSTOMER in accordance with the Wafer Lot acceptance criteria set forth in herein. In the event any Lot or Wafer is found to fail the criteria per Exhibit B, CUSTOMER shall have the right to reject such Lot or Wafer within (30) days after
receipt by CUSTOMER. 
  

 7 

 CUSTOMER shall request a Return Material Authorization (RMA) number and/or credit back from HSA in accordance with the
Agreement for such material. Materials returned by CUSTOMER without receipt of said RMA will not be accepted but will be returned to CUSTOMER, freight collect. 
  

HSA will notify CUSTOMER of any lot scrap that occurs during processing, or PCM test. It will be CUSTOMER’S decision to either have HSA and = FOUNDRY replace the
scrapped lot, or to reduce the expected delivery on the forecast as defined in Section 4.3 (Rolling Forecast). 
  
 Section 4.17. Reliability and QA. Reliability and QA data, which is sufficient to demonstrate normal life and environmental test performance of Products shall, if required, be submitted by HSA and FOUNDRY to
CUSTOMER upon request. 
  
 Section 4.18. Delivery. HSA shall ship
fabricated Wafer Lots in accordance with CUSTOMER Packing Criteria as stated in herein. Any changes of shipping method shall only be made following written approval from CUSTOMER, which approval shall not be unreasonably withheld or delayed.

  
 Delivery lead time for each production release shall be the quoted number
weeks from date of release per process technology. All good Wafers from each Production Lot must be shipped together as a single Lot. Wafers from the same Lot are not to be split into different shipments. HSA will notify CUSTOMER prior to shipment
of any lots with less than 15 wafers, and explain the cause of the loss of wafers. CUSTOMER and HSA will mutually agree on material disposition within five (5) working days after receipt by CUSTOMER to include acceptance, conditional acceptance, or
scrap based on CUSTOMER’s quality and reliability requirements. 
  
 HSA must
notify CUSTOMER of any delivery delays caused by HSA’s or FOUNDRY’s scheduling conflict, Wafer scrap, Fab shut downs, non-conforming material, etc. HSA and FOUNDRY will use the most reasonable business efforts to expedite recovery of
delivery delays. 
  
 Section 4.19. Title and Risk of Loss. Title and risk
of loss and damage to all Wafers purchased by CUSTOMER vest in CUSTOMER when the Wafers are placed by HSA into the possession of the CUSTOMER-designated freight carrier. 
  
 Section 4.20. Taxes and Duties. All taxes and/or duties of any kind whatsoever in connection with the performance of this Agreement
imposed by the authorities of the U.S. or its political subdivisions shall be borne by CUSTOMER. 
  
 Section 4.21. Work-In-Process (WIP) Report. HSA and FOUNDRY shall provide CUSTOMER with an updated WIP lot location report at least once every week through e-mail or “Web-site”. 
  
 Section 4.22. Ship Alert. Hynix shall provide CUSTOMER with a ship alert via fax or
Email within two (2) day after a shipment is made. The ship alert shall include the Airway bill number, number of boxes shipped, as well as the information given on the packing list. 
  
 ARTICLE V 
 PROPRIETARY INFORMATION 
  
 Section 5.1. Title to
Information. Title to Proprietary Information shall at all times be and remain with the party providing or developing such Proprietary Information. Title to any new features or functions made exclusively by HSA or the FOUNDRY shall vest in
and/or remain with such party. All mask sets, design tapes and rules and any other information related to the fabrication process of any Product developed by HSA or the FOUNDRY, shall be the property of and remain in the custody of HSA or the
FOUNDRY. Upon termination of this Agreement and the written request of CUSTOMER, HSA and/or the FOUNDRY, shall return or render useless all mask sets, design tapes and other CUSTOMER supplied information and provide CUSTOMER with written
confirmation. 
  

 8 

 Section 5.2. Confidentiality of Contract Terms. Neither party will disclose pricing or any other terms of this
contract or subsequent Purchase Orders without prior written approval of an officer of the other. 
  
 ARTICLE VI 
 TERM AND TERMINATION 
  
 Section 6.1. Term. The term of this Agreement and for any resulting Volume Production
Sales Agreement between the Parties, shall be for a period of three (3) years from the above Effective Date unless earlier terminated as provided below. Thereafter, the term may be renewed for additional terms of one (1) year upon the written
agreement of the parties, which written agreement shall be entered at least thirty (30) but not more than forty-five (45) days prior to the expiration of the then current term. 
  
 Section 6.2. Termination. In addition to termination under Section 2.4 of this Agreement, this Agreement may be earlier terminated:

  
 (a) for cause upon thirty (30) days’ written notice of a material breach
of this Agreement, provided, however, that at HSA’s and FOUNDRY’S sole option they may enforce any firm purchase order in place unless either of them is in breach; however, if the breach is cured within the thirty (30) days following
receipt of such notice, no termination shall occur based on material breach; 
  
 (b) by either party immediately upon written notice to the other party, to the extent permitted by law, if the other party files a voluntary petition in bankruptcy or otherwise seeks protection under any law for the protection of debtors,
has a proceeding instituted against it under any bankruptcy law which is not dismissed within sixty (60) days of filing, is adjudged a bankrupt, has a court assume jurisdiction of its assets under a reorganization act, has a trustee or receiver
appointed by a court for all or a substantial portion of its assets for the benefit of its creditors, or admits in writing its inability to pay its debts as they become due; or any party is acquired by or merged with another business where the party
is not a surviving entity; or 
  
 (c) by either party for convenience upon ninety
(90) days’ prior written notification to the other party, provided, however, that CUSTOMER’s firm purchase order(s) shall remain in full force and effect, and that within the ninety (90) day period, CUSTOMER is allowed to place one last
purchase order. CUSTOMER shall continue to be liable therefore and the terms of this Agreement and the Volume Production Sales Agreement shall remain in full force and effect until such time that HSA receives full payment of all invoices and the
other terms have been fulfilled. 
  
 Section 6.3. Effect of Termination.
Upon termination of this Agreement for any reason, the parties shall each promptly return to the other or, at the request of the disclosing party, destroy (including purging from any system or storage media) all items of Proprietary Information of
the disclosing party. Upon termination, CUSTOMER shall make payment of all then as yet unpaid charges, expenses and fees earned or accrued by HSA in the performance of the Foundry Work under this Agreement and the Volume Production Sales Agreement
up to the effective date of termination. At HSA’s sole option, any firm purchase orders shall remain in effect, and payment therefore shall be made upon delivery. Should HSA or FOUNDRY decide to cancel further development work in the event of
the termination of this Agreement, all work in progress may be purchased by CUSTOMER on an “as is” and “where is” basis for costs of materials and labor as described in Section 4.5. 
  
 Section 6.4. Survival. The provisions of Article V, Sections 6.3, Article VII, Article
VIII and Section 9 and 10 shall survive the expiration, cancellation or termination of this Agreement. 
  

 9 

 ARTICLE VII 
 LIMITED WARRANTY; DISCLAIMER; 
 AND LIMITATION OF LIABILITY 
  
 Section 7.1. Limited Warranty. FOUNDRY warrants that the Production Products, when
delivered hereunder to the CUSTOMER pursuant to the HSA Volume Production Sales Agreement, shall be free from defects in material and workmanship, and shall conform in all respects to the Customer’s Specifications, which were accepted hereunder
as the basis for fabrication of wafers. This warranty shall not extend to any Products which have been subject to damage in CUSTOMER’s shipping, storage, mishandling, misapplication, misuse, neglect, accident or abuse, improperly repaired or
installed, altered or modified in any way or by Acts of God. HSA shall have no liability whatsoever for any defects or problems of any kind or nature. For a period of twelve (12) months following shipment of the Production Product, FOUNDRY will
repair or replace, free of charge, all Production Products determined to be defective in manufacture, provided, however, that CUSTOMER promptly notifies HSA of such defect in writing timely providing all available information related thereto and
obtains a Return Material Authorization Number (“RMA”) prior to returning any defective Product so that HSA may properly coordinate FOUNDRY’s technical investigation and remedial efforts with CUSTOMER. HSA may make an independent
determination of the accuracy of any claim. In any event, FOUNDRY liability for any defective Product shall in no event exceed one hundred percent (100%) of the purchase price of the defective Product. 
  
 Section 7.2. Disclaimer and Limitation of Liability. EXCEPT AS SPECIFICALLY PROVIDED
IN SECTION 7.1 ABOVE, HSA AND FOUNDRY HEREBY SPECIFICALLY DISCLAIM ANY AND ALL WARRANTIES, WRITTEN OR ORAL, STATUTORY, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF DESIGN, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR USE OR PURPOSE OR ANY WARRANTIES ARISING FROM A COURSE OF DEALING, TRADE USAGE OR TRADE PRACTICE. NO REPRESENTATION OR OTHER AFFIRMATION OF FACT, ORAL OR WRITTEN INCLUDING, BUT NOT LIMITED TO, STATEMENTS REGARDING CAPACITY, SUITABILITY
FOR USE OR PERFORMANCE OF PRODUCTS, WHETHER MADE BY HSA, FOUNDRY OR THEIR EMPLOYEES, AGENTS OR OTHERWISE, WHICH IS NOT CONTAINED IN THIS AGREEMENT SHALL BE DEEMED TO BE A WARRANTY TO CUSTOMER FOR ANY PURPOSE OR GIVE RISE TO ANY LIABILITY OF HSA OR
FOUNDRY, THEIR AGENTS OR EMPLOYEES WHATSOEVER. SPECIFICATION OF ANY ACCEPTANCE CRITERIA CONCERNING ANY ITEM TO BE DELIVERED PURSUANT TO THIS AGREEMENT SHALL NOT BE DEEMED TO CONSTITUTE A WARRANTY WITH RESPECT TO SUCH ITEM. NEITHER PARTY SHALL BE
LIABLE FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OF ANY KIND OR NATURE ARISING FROM ANY PERFORMANCE OR FAILURE TO PERFORM, AND IN NO EVENT SHALL DAMAGES BE MORE THAN THE NONRECURRING ENGINEERING COST TO A LIQUIDATED DAMAGE
MAXIMUM OF TEN THOUSAND DOLLARS FOR THE DESIGN WORK OF ANY PRODUCT ORDERED BY CUSTOMER. THE PROVISIONS HEREOF SHALL BE THE SOLE AND EXCLUSIVE REMEDY FOR ANY BREACH OF THIS AGREEMENT. 
  
 ARTICLE VIII 
 WARRANTIES BY CUSTOMER; INDEMNIFICATION 
  
 Section 8.1.
Warranty By CUSTOMER. CUSTOMER hereby warrants that the Design Specifications and its transfer thereof to HSA and FOUNDRY, including, but not limited to, net lists and test lists, do not infringe any trade secrets, copyrights, patents, mask
work rights or any other proprietary rights of any third party nor do any of the Design Specifications as augmented comprise matters regulated by U.S. Department of Commerce Export Control Regulations or U.S. Department of Defense International
Traffic In Arms Regulations and to the extent that any such regulations may be involved, CUSTOMER has secured or otherwise confirmed the issuance to HSA and FOUNDRY hereunder of the necessary Export Licenses to allow the lawful transfer of such
materials to HSA and FOUNDRY. 
  

 10 

 Section 8.2. Indemnification. CUSTOMER hereby agrees to defend and indemnify HSA and FOUNDRY and to defend and
hold them harmless from or for any breach or violation of CUSTOMER’s warranties under Section 8.1 above and against any claims, actions, liabilities, damages, and costs resulting from any alleged infringement of any third party patent,
copyright, mask work right, trade secrets, or any other proprietary rights related to the Design Specifications. CUSTOMER shall not issue any warranties or guarantees with respect to Production Products to any person which in any way obligates or
purports to obligate HSA or FOUNDRY to any such person. 
  
 ARTICLE IX; 
 MISCELLANEOUS 
  

Section 9.1. Assignment. No party may assign this Agreement nor delegate its duties hereunder other than as provided herein without the prior written consent of
the other party, and any attempted assignment or delegation shall be null and void. However, a Party may assign this Agreement with prior notification to an entity which acquires, directly or indirectly, substantially all of its assets or merges
with it and the Party is the surviving entity. Subject to the above, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto. 
  
 Section 9.2. Waiver. No term or condition of this Agreement shall be deemed waived unless such waiver is in a writing executed by the
party against whom the waiver is sought to be enforced. Failure or delay in the exercise of any right, power or privilege hereunder shall not operate as a waiver thereof or of any subsequent failure or delay. 
  
 Section 9.3. Law to Govern, Jurisdiction. This Agreement shall be governed by and
construed in all respects under the laws of California, without regard to rules concerning conflicts of law. The Parties hereby submit to the exclusive, personal jurisdiction of the appropriate state and federal courts located in the County of Santa
Clara, State of California, for the resolution of all matters related to this Agreement including arbitration thereof as set forth below. 
  
 Section 9.4. Severability. If any of the provisions of this Agreement in any way violate or contravene any laws applicable to this Agreement, such provision shall
be deemed not to be a part of this Agreement and the remainder of this Agreement shall remain in full force and effect. 
  
 Section 9.5. Notice. All notices required pursuant to this Agreement shall be in writing and delivered personally or via facsimile or via registered or certified
mail, return receipt requested, to the address of the parties first above appearing, which address may be changed by written notice of the same to the other party. Mailed notices shall be deemed to be effective as of the date of mailing. 

 

			
	 To CUSTOMER:

	 	 To HSA and FOUNDRY

	Analogic Tech	 	Hynix Electronics America
	1250 Oakmead Parkway, Suite 310	 	3101 N. First St.
	Sunnyvale, California 94086	 	San Jose, California 95134
	ATTENTION: Director of Operations	 	ATTENTION: Director of Western Area Sales
	Telephone: 408 524-9684 x186	 	Telephone: 408 232-8758
	Facsimile: 408 904-5067	 	Facsimile: 408 232-8135

  
 Section 9.6. Entire Agreement;
Amendments. This Agreement, including all exhibits and attachments hereto, which by this reference are incorporated into and made a part of this Agreement, constitutes the entire understanding and agreement of the Parties related to the subject
matter hereof, and supersedes any and all prior or contemporaneous offers, negotiations, agreements and/or understandings, written or oral, 
  

 11 

 as to such subject matter. Except as provided herein, no amendment, revision or modification of this Agreement shall be
effective or binding unless made in writing and signed by the Party against whom enforcement is sought. 
  
 Section 9.7. Counterparts. This Agreement may be executed in any number of counterparts, and each counterpart shall constitute an original instrument, but all such separate counterparts shall constitute one and
the same instrument. 
  
 Section 9.8. Attorney’s Fees. If a dispute
arises concerning the meaning or interpretation of any provision of this Agreement, the Party not prevailing in such dispute shall pay any and all reasonable costs and expenses including attorney’s fees, incurred by the other Party in resolving
such dispute or enforcing or establishing its rights hereunder. 
  
 Section 9.9.
Further Assurances. The parties to this Agreement shall each perform such acts, execute and deliver such instruments and documents, and do all such other things as may be reasonably necessary to accomplish the transactions contemplated in
this Agreement. 
  
 Section 9.10. Mediation and Arbitration of Disputes.

  
 (A) Mediation. Any dispute between the Parties arising from or related
to the subject matter of this Agreement will first be discussed by the high-ranking executives of each company, each of whom shall be fully authorized to settle the dispute. If such dispute cannot be resolved by such high-ranking executives, the
dispute shall be mediated before an impartial, neutral mediator mutually agreed to by the Parties within 20 days following failure to resolve the dispute. The provisions of California Evidence Code Section 1152.5 shall be applicable to all
statements and admissions made, and all documents prepared, in connection with such mediation. Any mediation fee shall be divided equally between the Parties. If any Party commences arbitration without first attempting to resolve the matter through
mediation, then in the discretion of the arbitrator, that Party shall not be entitled to recover attorneys’ fees, even if they would otherwise have been available to that Party. 
  
 (B) Arbitration. In the event the Parties are unable to resolve the dispute through mediation, the dispute shall be finally resolved
through binding arbitration pursuant to the rules of the American Arbitration Association, as amended, and the Parties hereto specifically agree to be bound thereby. The arbitration shall be decided by an a panel of three arbitrators mutually
acceptable to the Parties, provided, however, that if the parties cannot agree on one arbitrator, then the Parties shall each appoint an arbitrator who shall then appoint the third arbitrator by mutual agreement. The Parties hereby agree that the
arbitration of the dispute shall be conducted in Santa Clara County, State of California. 
  
 (C) Nothing in this Agreement will be deemed to prevent either Party from seeking injunctive relief or any other provisional remedy from any court having jurisdiction over the Parties and the subject matter of the
dispute as necessary to protect either Party’s name, proprietary information, trade secrets, know-how, or any other proprietary rights. 
  
 Section 9.11. Independent Contractors. The Parties are each independent contractors and not joint venturers, partners, agents or representatives of the other.
Neither Party has any right to create any obligation on the part of the other Party. 
  
 Section 9.12. Force Majeure. Neither Party shall be liable for any loss, damage, delay or failure of performance resulting directly or indirectly from any cause beyond its reasonable control, including, but not limited to, acts of
God, extraordinary traffic conditions, riots, civil disturbances, wars, states of belligerence or acts of the public enemy, strikes, labor disturbances, work stoppages, or the laws, regulations, acts or failure to act of any governmental authority,
provided that neither of the Parties shall be excused for failure or delay in making payments of money due and payable hereunder. 
  

 12 

 Section 9.13 Authority. Each person signing this Agreement on behalf of a Party represents and warrants that he or
she has actual authority to bind the Party on behalf of whom the person is signing this Agreement. 
  
 Section 9.14 Section Headings. Section Headings and titles used herein are for convenience only and shall not in any way control the meaning and interpretation of this Agreement. 
  
 Section 9.15. Exhibits. The following Exhibits are attached hereto and made a part
hereof: 
  

			
	EXHIBIT A	  	: Product Pricing, Scheduling and Quantities
	EXHIBIT B	  	: Parametric (PCM) and Other Specifications
	EXHIBIT C	  	: Volume Production Sales, Terms and Condition
	EXHIBIT D	  	: Multiparty Disclosure Agreement (NDA)

  

 13 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by its duly authorized
representatives effective as of the date first above appearing. 
  

			
	(“CUSTOMER”)
		
	By:	 	 /s/ Richard K. Williams

	Name:	 	Richard K. Williams
	Title:	 	President & CEO/CTO
	
	HYNIX SEMICONDUCTOR AMERICA (“HSA”)
		
	By:	 	 /s/ John Radanovich

	Name:	 	JOHN RADANOVICH
	Title:	 	VP/GM System IC Division
	
	HYNIX SEMICONDUCTOR INDUSTRIES. (“HSI”)
		
	By:	 	 /s/ Channy Lee

	Name:	 	CHANNY LEE
	Title:	 	VP & GM of SMS Division.

  

 14 

 HSAHHSYSIC.8900 
  
 EXHIBIT A 
  
 PRODUCT WAFER PRICING, SCHEDULING AND QUANTlTIES(to be completed by HSA, HSI and 
 ADVANCED ANALOGIC TECHNOLOGIES, INC.) 
  
 The following prices are
currently in effect for wafers on Hynix’s fabrication process:  
  
 (FILL IN FOR EACH CUSTOMER PRODUCT) 
  
 UNPROBED WAFERS 
  

									
	 CUSTOMER
 Alias

	  	Hynix
Alias

	  	 Process
 Description

	  	 Wafer
 Qty

	  	 Hynix Wafer
 Price (USD)

	AATXXX	  	 	  	0.6um 5V/0.6um HV	  	[***]	  	$ [***]
	AATXXX	  	 	  	0.6um 5V/0.6um HV	  	[***]	  	$ [***]

  
 TURNKEY 
  

											
	 CUSTOMER
 Alias

	  	Pkg

	  	Hynix
Alias

	  	 Process
 Description

	  	Target
Yield

	  	Hynix Unit
Price (USD)

	N/A	  	 	  	 	  	 	  	 	  	 

  
 Note: The above prices shall be
negotiated and agreed upon in writing by both parties on an annual basis. 
  
 NON-RECURRING ENGINEERING CHARGES 
  

							
	 CUSTOMER
Alias

	  	Hynix
Alias

	  	 Process
 Description

	  	 Engineering
 Charge

	AATxxxx	  	 	  	0.6um 2P3M 5V	  	$[***]
	AATxxxx	  	 	  	0.6um 2P2M 5/16V	  	$[***]

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 15 

 DEVELOPMENT SCHEDULE (Original Qual Plan) 
  

							
	 Action

	  	Alias: 1
Date: May 2002

	  	Alias: 2
Date: July 2002

	  	Alias: 3
Date: Sep 2002

	 Database release by CUSTOMER
	  	5/?/2002	  	7/?/2002	  	9/?/2002
	 Mask tooling confirmed between CUSTOMER and FOUNDRY
	  	 	  	 	  	 
	 PG and Frame work completed by FOUNDRY
	  	 	  	 	  	 
	 Job Deck reviewed and confirmed by CUSTOMER
	  	 	  	 	  	 
	 1st
Prototype Development fab lot start/out date
	  	 	  	 	  	 
	 CUSTOMER evaluation of 1st Prototype Development Lot
	  	 	  	 	  	 
	 2nd
Prototype Development fab lot start/out date
	  	 	  	 	  	 
	 CUSTOMER evaluation of 2nd Prototype Development Lot
	  	 	  	 	  	 
	 Start/Process/Fab-Out of first qual lot
	  	 	  	 	  	 
	 Start/Process/Fab-Out of second qual lot
	  	 	  	 	  	 
	 Start/Process/Fab-Out of third qual lot
	  	 	  	 	  	 
	 CUSTOMER evaluation of qualification lots
	  	 	  	 	  	 
	 Qualification testing and completion of all tests and qualification paperwork
	  	 	  	 	  	 
				
	 Action

	  	 Alias: (fix)
 Date

	  	 Alias: (fix)
 Date

	  	 Alias:
 Date

	 Database release by CUSTOMER
	  	 	  	 	  	 
	 Mask tooling confirmed between CUSTOMER and FOUNDRY
	  	 	  	 	  	 
	 PG and Frame work completed by FOUNDRY
	  	 	  	 	  	 
	 Job Deck reviewed and confirmed by CUSTOMER
	  	 	  	 	  	 
	 1st
Prototype Development fab lot start/out date
	  	 	  	 	  	 
	 CUSTOMER evaluation of 1st Prototype Development Lot
	  	 	  	 	  	 
	 2nd
Prototype Development fab lot start/out date
	  	 	  	 	  	 
	 CUSTOMER evaluation of 2nd Prototype Development Lot
	  	 	  	 	  	 
	 Start/Process/Fab-Out of first qual lot
	  	 	  	 	  	 
	 Start/Process/Fab-Out of second qual lot
	  	 	  	 	  	 
	 Start/Process/Fab-Out of third qual lot
	  	 	  	 	  	 
	 CUSTOMER evaluation of qualification lots
	  	 	  	 	  	 
	 Qualification testing and completion of all tests and qualification paperwork
	  	 	  	 	  	 

  
 Initials 
  

					
	Date:	 	Date:	 	Date:
			
	CUSTOMER:	 	HSA:	 	HSI:

  

 16 

 EXHIBIT B 
  

PARAMETRIC (PCM) AND OTHER SPECIFICATIONS 
 List of CUSTOMER and HSA and FOUNDRY Design and Process Specifications and Rules Numbers. 
  
 Waivers and PCM Specifications. 
 Design Rule Specification Number(s): 
 Electrical Specification Number(s): 
 Spice Model Specification
Number(s): 
 Mask Specification Number(s): 
 Customer Tooling and Device Specification Number(s) (COT Check Request): 
 Assembly Drawing Specification Number(s): 
 Test Program Specification Number(s): 
 PCM Specification
Number(s): 
 Specification Number(s) for Wafer Procurement 
 Visual Inspection Specification Number(s): 
 Reliability and OA Specification Number(s): 
 Test Baseline Spec: 
 Assembly Baseline Spec: 
 Packing Baseline Spec: 
  
 (To be completed by Hynix and ADVANCED ANALOGIC TECHNOLOGIES, INC. engineering) 
  

					
	 Device(s)

	 	 Specification Description

	 	 Specification Number

	 	 	Design Rule	 	HI60S-D1.0/HL60S-D1 9
	 	 	Electrical Spec	 	HI60S-E1.0/HL60S-E1 7
	 	 	Spice Model Mask Spec	 	HI60S-S1.0/HL60S-S1 9
	 	 	PCM Spec	 	HI60S-W0.0/HL60S-W1 .0
	 	 	Wafer Procurement Spec	 	 
	 	 	Visual Inspection Spec	 	HEIS-CSQGA-003
	 	 	Reliability and QA Spec	 	 
	 	 	Customer Tooling and Device Form	 	NA
	 	 	Customer Tooling and Device Form	 	NA
	 	 	Customer Tooling and Device Form	 	NA
	 	 	Assembly Drawing	 	NA
	 	 	Test Program	 	NA
	 	 	Test Program	 	NA
	 	 	Test Program	 	NA
	 	 	Product Change Notification	 	????

  
 Yield Guarantee (at wafer sort) and
Reimbursement/Discount Plan 
  

			
	 Sort Yield

	 	 Discount

	>/= 80%	 	0%
	70~79%	 	10%
	50~69%	 	20%
	40~49%	 	40%
	</=40%	 	RMA

  
 Note: Applies to any die size
equal to 3mm x 3mm or smaller. 
 Note: Discounts will be applied to new wafer orders. 
 Note: RMA will be for wafer replacement only. 
  

 17 

 EXHIBIT C 
  

VOLUME PRODUCTION SALES AGREEMENT 
 TERMS AND CONDITIONS 
 (attach current standard terms) 
  
 Volume Purchase Agreement 
  

											
	 CUSTOMER
Alias

	  	Hynix
Alias

	  	Period

	  	 CUSTOMER Expected
 Purchase
Quantity

	  	 Hynix Expected
 Supply
Quantity

	  	Production
Cycle Time
(days / layer)

	AATxxxx	  	?	  	[***]	  	[***]	  	[***]	  	[***]
	AATxxxx	  	?	  	[***]	  	[***]	  	[***]	  	[***]

  
 Wafer Bank Plan 
  

			
	 Period

	  	 Payment Terms

	[***]	  	[***]
	[***]	  	[***]
	[***]	  	[***]

  
 Note: Bank lots will be stored at
metal 1, 2 or 3 mask steps. 
  
 Initials 
  

					
	Date:	 	Date:	 	Date:
			
	CUSTOMER:	 	HSA:	 	HSI:

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 18 

 EXHIBIT D 
  

MULTIPARTY NON DISCLOSURE AGREEMENT 
  
 (Attach copy of signed NDA) 
  

 19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]