Document:

Exhibit 10.34

 

CONFIDENTIAL

 

 

WAFER
SUPPLY AGREEMENT

 

between:

 

Newport Fab, LLC

 

a Delaware limited liability
company

 

d/b/a Jazz Semiconductor

 

and

 

RF
Micro Devices, Inc.

 

a North
Carolina corporation.

 

 

Dated as of October 15,
2002

 

 

 

 

Confidential treatment is being requested for portions of this
document.  This copy of the document
filed as an exhibit omits the confidential information subject to the
confidentiality request.  Omissions are
designated by the symbol [...***...].  A
complete version of this document has been filed separately with the Securities
and Exchange Commission.

 

 

TABLE
OF CONTENTS

 

	
  1.

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  “Basic Price”

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.2

  	
  “Capacity”

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.3

  	
  “Engineering
  Wafers”

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.4

  	
  “Forecast”

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.5

  	
  “Hot Lot”  and “Super Hot Lot”

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.6

  	
  “Lead-time”

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.7

  	
  “Lot”

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.8

  	
  “Newport Beach Fab”

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.9

  	
  “NRE Services”

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.10

  	
  “Party”

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.11

  	
  “Photomasks”

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.12

  	
  “Production Wafers”

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.13

  	
  “Purchase Order”

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.14

  	
  “Risk Materials”

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.15

  	
  “Wafers”

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.16

  	
  “Wafer Acceptance Criteria”

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.17

  	
  “Wafer Warranty Period”

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Purchase and Supply Obligations

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Establishment of Capacity and Volume Commitments

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Wafer Purchases

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Scope

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Purchase Orders; Delivery Schedule

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.3

  	
  Acceptance and Acknowledgement

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.4

  	
  Materials

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.5

  	
  Risk Materials

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.6

  	
  NRE Services

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.7

  	
  No Waiver or Release

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Wafer Delivery and Logistics

  	
  5

  

 

 

	
  5.

  	
  Pricing; Credits; and Payments

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Invoicing and Payment

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.2

  	
  Wafer Credits

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.3

  	
  Costs

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.4

  	
  Taxes

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Tracking; Reporting; and Audits

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Wafer Tracking

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.2

  	
  Reporting Requirements

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Warranty and Disclaimer

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Wafer Warranty

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.2

  	
  Disclaimers

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Indemnification

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  RFMD
  Indemnification Obligations

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2

  	
  JAZZ Indemnification Obligations

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.3

  	
  Conditions

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.4

  	
  Sole and Exclusive Remedy

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Confidentiality

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Limitations of Liability

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  DISCLAIMER

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.2

  	
  BASIS OF BARGAIN

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Term; Termination

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  Term

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.2

  	
  Termination

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.3

  	
  Survival

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  General

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  Agency

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.2

  	
  Governing Law; Venue and Jurisdiction

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.3

  	
  Dispute Resolution

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.4

  	
  Third-Party Beneficiaries

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.5

  	
  Compliance with Law

  	
  10

  

 

ii

 

	
   

  	
  12.6

  	
  Force Majeure

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.7

  	
  Amendment; Later Agreement

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.8

  	
  Notices

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.9

  	
  Assignment

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.10

  	
  Waiver

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.11

  	
  Severability

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.12

  	
  Counterparts and Facsimile

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.13

  	
  Rules of Construction

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.14

  	
  Entire Agreement

  	
  12

  

 

iii

 

LIST
OF EXHIBITS

 

	
  EXHIBIT A

  	
  PRICING & LEADTIME

  
	
   

  	
   

  
	
  EXHIBIT B

  	
  WAFER FORECAST

  
	
   

  	
   

  
	
  EXHIBIT C

  	
  REPORTS

  
	
   

  	
   

  
	
  EXHIBIT D

  	
  MAP SAMPLE SIZE

  

 

iv

 

WAFER
SUPPLY AGREEMENT

 

THIS WAFER SUPPLY AGREEMENT
(this “Supply Agreement”) is
entered into as of October 15, 2002 (the “Effective
Date”) by and between NEWPORT FAB, LLC,
a Delaware limited liability company d/b/a Jazz Semiconductor (“JAZZ”) and RF MICRO DEVICES, INC., a North Carolina
corporation (“RFMD”).

 

RECITALS

 

RFMD desires, on the terms and
conditions of this Supply Agreement, to purchase from JAZZ semiconductor wafers
and related foundry manufacturing services.

 

JAZZ is willing to supply such wafers and
services to RFMD
on the terms and conditions set forth in this Supply Agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained in this Supply
Agreement, the Parties agree as follows:

 

AGREEMENT

 

1.             DEFINITIONS. Capitalized terms not expressly defined
elsewhere in this Supply Agreement have the following meanings:

 

1.1          “Basic
Price” is defined in Exhibit A (Pricing).

 

1.2          “Capacity”  means, as of any date for any period, the average number
of wafer starts per day capable of being completed at the Newport Beach Fab
during such period, based on available equipment, tools, and personnel,
without additional capital spending, equipment purchases, or hiring of
personnel.

 

1.3          “Engineering Wafers”  means Wafers, manufactured by
JAZZ solely for qualification or testing, and which are either (1) initial
lot run for a new mask set or mask set revision, (2) any lot run by RFMD
with less than 25 wafers, or (3) any lot that is split or placed on hold
by RFMD.

 

1.4          “Forecast”
is defined in Section 2.1(a).

 

1.5          “Hot Lot” and “Super Hot
Lot” mean Lots that are processed so as to meet certain accelerated
Lead-times specified in writing to RFMD from time to time.

 

1.6          “Lead-time”
means the estimated amount of time required from submission of a Purchase
Order to delivery, as specified in Exhibit A to this Supply Agreement.

 

1.7          “Lot” means a single lot of Wafers
that are processed together.  Each Lot of
Production Wafers or Risk Materials shall consist of twenty-five (25)
Wafers.  Each Lot of Engineering Wafers
shall consist of no less than ten (10) but less than twenty-five (25)
Wafers.

 

1.8          “Newport Beach Fab” means the
facility and associated assets used by JAZZ to provide specialty process
foundry services and to manufacture semiconductor wafers, located in Newport
Beach, California.

 

1.9          “NRE
Services”  means non-recurring
engineering services.

 

 

1.10        “Party”  means either RFMD or JAZZ, as the
context requires, and “Parties” means RFMD
and JAZZ collectively.

 

1.11        “Photomasks”  means precision photographic quartz or glass plates
containing microscopic images of integrated circuits, for use as master images
to transfer circuit patterns onto semiconductor wafers during the fabrication
of integrated circuits and other semiconductor products.

 

1.12        “Production Wafers”  means all Wafers other than
Engineering Wafers, manufactured by JAZZ.

 

1.13        “Purchase Order”  means a written blanket order
for the purchase of a specified quantity of Wafers by process and product
submitted by RFMD to Jazz.

 

1.14        “Risk Materials”  means Wafers specifically
identified by RFMD in a Purchase Order as “Risk Materials”
that are to be manufactured by JAZZ, but for which compliance with the Wafer
Acceptance Criteria is specifically waived. 
“Risk Materials” may include Wafers manufactured with authorized
compliance exceptions relating to, for example, unverified process changes, no
supporting qualification data, and known design rule violations.

 

1.15        “Wafers”  means
semiconductor wafers to be processed and prepared for shipping by JAZZ at the
Newport Beach Fab, including Engineering Wafers, Production Wafers, and Risk
Materials.

 

1.16        “Wafer
Acceptance Criteria” means the parametric wafer measurements set forth in
JAZZ’s procedures as specified in JAZZ’s document #19091A01 entitled “Wafer
Acceptance Criteria,” set forth in Exhibit D.

 

1.17        “Wafer
Warranty Period” is defined in Section 7.1.

 

2.             PURCHASE AND
SUPPLY OBLIGATIONS.

 

2.1          Establishment of Capacity and Volume
Commitments

 

(a)           Forecast.  Within [...***...] prior to the [...***...] during
the term of this Supply Agreement, RFMD shall submit in writing or
electronically to JAZZ a rolling [...***...]
forecast setting forth the number of Wafers for which the Company shall
commence a specified fabrication process (SiGe or CMOS) during each month of
the forecast (a “Forecast”).

 

(b)           RFMD Volume Commitments. 
RFMD
shall purchase, at the Contract Price, 100% of the Wafers for which JAZZ is
required to commence the SiGe or CMOS fabrication process as specified by RFMD
for the [...***...]
month of
the Forecast and for the [...***...] of the
initial Forecast (a “Guaranteed
Month”). 
The number of Wafers set forth in a Forecast with respect to a
Guaranteed Month that RFMD is obligated to purchase pursuant to this section shall
be referred to herein as the  “Wafer
Volume Commitment.” 
RFMD may decrease, by the percentages set forth in the following table,
the number of Wafers for any month (other than for a Guaranteed Month) of the
then current Forecast in the next subsequent Forecast, but in no event shall
JAZZ be obligated to supply Wafers for any calendar year in excess of its
capacity commitment set forth in Section 2.1(c) of this
Agreement: 

 

2

 

	
  Month of the

  current

  Forecast

  	
   

  	
  Percentage Change

  permitted in the next

  subsequent Forecast

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
  %

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
  %

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
  %

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
  %

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
  %

  

 

JAZZ and RFMD acknowledge that the number of
Wafers in a Forecast shall be the number for a certain fabrication process
(i.e., SiGe or CMOS), and nothing herein shall restrict changes to the mix of
Wafers within a certain fabrication process by RFMD in subsequent Forecasts,
provided the total number of Wafers for a certain fabrication process shall be
subject to the limitations set forth above.

 

(c)           JAZZ Capacity
Commitments.  JAZZ, shall accept each Purchase Order, which
is consistent with the Forecast, and fulfill all the amounts in RFMD’s
then-current Forecasts up to the baseline amount for each year of the term of
this Supply Agreement referenced in Exhibit B (the “Baseline Commitment”).  If the amount forecasted in any calendar year
exceeds the Baseline Commitment (the amount of such excess being referred to
herein as the “Excess
Demand”), provided such Excess Demand does not exceed [...***...] the Baseline Commitment then
JAZZ shall use its commercially best efforts to satisfy the Excess Demand, and
JAZZ shall not fulfill the demands of any other customers of JAZZ in excess of
JAZZ’s minimum commitment to such other customers unless and until JAZZ has
fully satisfied the Excess Demand. 
Regardless of Baseline or subsequent forecast, Jazz shall at all times
agree, upon [...***...] advance
notice by RFMD, to start [...***...] per
day during the term of this Agreement.

 

(d)           Preferred Vendor
Status.  RFMD shall give JAZZ the first right of
refusal to supply all RFMD silicon demand, provided JAZZ is competitive in
pricing, technology, quality and delivery, and further provided no material
breach as reasonably determined in good faith by RFMD, by Jazz or other Jazz
board members, of the Confidentiality Agreement or confidentiality provisions
of the Company Second Amended and Restated Stockholder Agreement signed
contemporaneously herewith occur.

 

(e)           Lead-Times. 
Jazz shall not revise any Lead-time without providing RFMD with [...***...] advanced written notice, and
in no event shall any Lead-time exceed [...***...]
of the then current industry average for like processes.

 

3.             WAFER PURCHASES.

 

3.1          Scope.
Upon receipt of a Purchase Order from RFMD (as described in Section 3.2(a) (Purchase
Orders)), JAZZ shall produce the Wafers covered by such Purchase Order release
as described therein Section 3.3..

 

3.2          Purchase
Orders; Delivery Schedule.

 

(a)           Purchase Order.  Simultaneously with
providing each Forecast to JAZZ required by Section 2.1 (a), FRMD shall
submit to JAZZ a non-cancelable Purchase Order for the number of Wafers for
which the fabrication process is to be commenced during the [...***...] month of
such Forecast, except

 

3

 

that the
initial Forecast shall be accompanied by a noncancelable Purchase Order for the
number of Wafers for which the fabrication process is to be commenced during
the [...***...] months of such Forecast.

 

(b)           Delivery Schedule. 
JAZZ will acknowledge each Purchase Order with an acknowledgement (a “Purchase Order
Acknowledgment”), which shall include a schedule by
Wafer part number and quantity, within [...***...]
of the date of such Purchase Order.

 

3.3          Acceptance
and Acknowledgement.  Each Purchase
Order submitted shall be accepted by JAZZ up to the Wafer Volume Commitment
defined in Section 2.1 and shall be acknowledged by JAZZ within [...***...] days of receipt.  Subject to the terms of this Supply
Agreement, once JAZZ accepts a Purchase Order, it will be obligated to produce
and deliver the Wafers in the volumes specified in the Purchase Order and RFMD
will be obligated to purchase such Wafers in the volumes specified in the
Purchase Order.  Unless otherwise agreed
to in writing by the Parties, Production Wafers shall be ordered by RFMD and
delivered by JAZZ in Lots of twenty-five (25) Wafers and Engineering Wafers
shall be ordered by FRMD and delivered by JAZZ in Lots of ten (10) to no
more than twenty-five (25) Wafers. 
Subject to available Capacity, RFMD may request that specified Lots be
processed on an expedited basis, in which case JAZZ shall use commercially
reasonable efforts to process such Lots on such expedited basis; provided that JAZZ shall have no liability
for failure to actually provide expedited processing.  The cost of Wafers delivered on an expedited
basis shall be:

 

	
  Engineering
  Lots and

  Hot Lots

  	
   

  	
  [...***...] multiplied by the
  Contract Price (or other price applicable to such Lots for unexpedited
  processing)

  
	
   

  	
   

  	
   

  
	
  Super-Hot
  Lots

  	
   

  	
  [...***...] multiplied by the
  Contract Price (or other price applicable to such Lots for unexpedited
  processing)

  

 

Jazz agrees that subject to available
capacity loading, Jazz will make commercially reasonable efforts to provide
RFMD with accelerated production lot processing at cycle times which are less
that the stated Lead-times, but at cycle times greater that Hot Lots.  Such commitments will apply to an agreed upon
number of Wafer lots prioritized in conjunction with RFMD and at a mutually
agreed upon charge less than the standard Hot Lot processing premium.

 

3.4          Materials.
 JAZZ shall be responsible for
procuring all materials required to manufacture the quantity of Wafers ordered
by RFMD.  Upon JAZZ’s receipt of the GDS Files from
RFMD, JAZZ shall obtain and furnish all Photomasks, which shall be at RFMD’s
expense.  Jazz shall invoice RFMD for
such Photomasks at the start Wafer production. 
JAZZ shall be responsible for repair or replacement of any of RFMD’s
Photomasks damaged while in JAZZ’s possession, unless such damage was due to
any act or omission of RFMD.

 

3.5          Risk
Materials.  At RFMD’s
request and subject to Section 2.1.(b) (RFMD Volume
Commitments) and to any applicable Purchase Order, JAZZ shall process and
provide Risk Materials to RFMD. 
Each Purchase Order for Risk Materials submitted by RFMD shall include a
written statement setting forth the risk factors or any special circumstances
related to the Risk Materials and specifying the quantity of Risk Materials to
be provided.  JAZZ’s acknowledgement of a
Purchase Order for Risk Materials shall be deemed an acknowledgement by RFMD of
such risks or circumstances.

 

3.6          NRE
Services At RFMD’s request, the Parties shall negotiate
regarding provision by JAZZ of NRE Services to RFMD related to development of
new Wafers.  All NRE Services provided
pursuant to this Supply Agreement shall be in accordance with the Research and
Development Agreement entered into between the parties concurrently
herewith.  The Parties shall negotiate in
good faith the terms and conditions and any applicable pricing for such NRE
Services.

 

4

 

3.7          No
Waiver or Release No failure by JAZZ to accept any modification in the
volume, delivery date, or other term with respect to any Forecast, Wafer Volume
Commitment or Purchase Order proposed by RFMD, provided that JAZZ has the
discretion under the terms hereof to accept or reject such proposed
modification, shall act as a waiver or release of, or otherwise relieve RFMD
from, RFMD’s obligations hereunder to satisfy the Waiver Volume Commitment for
each month during the term hereof.

 

4.             WAFER DELIVERY
AND LOGISTICS.

 

All Wafers delivered to RFMD
shall be delivered F.O.B. the Newport Beach Fab.  Title and risk of loss shall pass from JAZZ
to RFMD
upon delivery, which shall be deemed made upon transfer by JAZZ of possession
to the shipping carrier or to storage if not shipped immediately.  RFMD shall be
responsible for all freight, handling and insurance charges subsequent to such
delivery.  Except in accordance with the
applicable delivery terms set forth in this Supply Agreement, JAZZ shall not
have any liability in connection with shipment, nor shall the shipping carrier
be deemed to be an agent of JAZZ.

 

5.             PRICING;
CREDITS; AND PAYMENTS.

 

5.1          Invoicing
and Payment.

 

(a)           Shipped Wafers. 
JAZZ will invoice RFMD for Wafers delivered hereunder upon
shipment of each Lot, at the applicable Basic Wafer price.  The Contract Price shall mean the price
calculated pursuant to the Basic Price applicable to such Wafers in effect on
the date of the invoice, less any applicable Wafer Credits (as defined in Section 5.2
(Wafer Credits) below).  RFMD shall pay
any amounts due on such invoices within forty (40) days of receipt
thereof.  Notwithstanding any other
provision hereof, neither Party may offset any amounts owed by such Party to
the other Party against any amounts from such other Party, without such other
Party’s express written agreement to such offset in each case.

 

(b)           Shortfalls. 
The amounts of the Wafer Volume Commitment not purchased by RFMD (“Shortfalls”), if any,
will be reconciled and invoiced at the end of each month, subject to the
allowances provided for in Section 2.1.(b) attributable to
that month, and amounts due in respect thereof, after applying the Wafer Credits,
shall be paid by RFMD within forty (40) days thereafter RFMD’s payment of the
foregoing amounts in respect to Shortfalls shall be JAZZ’s sole and exclusive
remedy, and RFMD’s entire liability, for RFMD’s failure to meet any Forecast
hereunder or to release or purchase any Wafers ordered in Purchase Orders.

 

5.2          Wafer
Credits.  (a) JAZZ will provide
to RFMD
credits for the purchase of Wafers from JAZZ, in the amount of Twenty Million
U.S. Dollars (U.S. $20,000,000).  Such Wafer Credits shall
apply only to the Basic Price (as described in Exhibit A) of Wafers
purchased by RFMD.  The
amount of the Wafer Credit shall be applied to each and every Wafer purchased
by RFMD by the reduction in the Basic Price per wafer invoiced by: sixteen  percent (16%) through December 2003, thirteen percent (13%) through December 2004, twelve  percent (12%) through December 2005, ten  percent (10%) through December 2006, and five percent (5%) in all subsequent years until the total
amount of Wafer Credits has been satisfied. 
Within 10 days after the close of the Jazz accounting month, Jazz will
provide to RFMD payment for the wafer credits earned during such accounting
period.  The summary provided will
reference invoice number, credit earned and date of invoice.

 

(b) Upon the receipt of full payment of
the Promissory Note of RFMD in the principal amount of $30 million held by Jazz
dated October 15, 2002 (the “RFMD Note”), the amount of the Wafer Credits
shall be increased to a total of Forty Million
U.S. Dollars (U.S. $40,000,000) to be
applied in accordance with Section 5.2 (a) above.

 

5

 

(c) If the RFMD Note is not paid in full
in cash by October 15, 2003, in addition to any other remedy available to
Jazz, the unused Wafer Credit remaining as of October 15, 2003 shall be
forfeited as of that date.

 

5.3          Costs.
 Except as otherwise provided herein
or agreed to in writing by the Parties, each Party will be solely responsible
for the costs and expenses it incurs in performing its obligations under this
Supply Agreement.

 

5.4          Taxes.
 RFMD will be
responsible for payment of any local, state or federal sales, use and excise or
similar taxes or related government charges (“Taxes”)
imposed on or arising from RFMD’s purchase of Wafers under this Supply
Agreement, excluding any Taxes on the net income or net worth of JAZZ.  All Wafer prices are exclusive of federal,
state or local sales, use, excise, or similar taxes applicable to Wafers or
mask sets or the fabrication, processing, engineering, or sale thereof.  Any such tax(es) shall be separately itemized
on JAZZ’s invoice(s) and paid by RFMD, or, in lieu thereof, RFMD shall furnish
JAZZ a properly executed tax exemption certificate prior to shipment.

 

6.             TRACKING;
REPORTING; AND AUDITS.

 

6.1          Wafer
Tracking.  All Wafers manufactured
and delivered by JAZZ to RFMD shall have backward and forward trace
ability sufficient to enable JAZZ to identify (i) the processes and
materials used in the manufacture of such Wafers; (ii) the batches or lots
of such materials; and (iii) other Wafers in the same or sequential
lots.  Such information shall be provided
to RFMD,
upon RFMD’s
reasonable request.

 

6.2          Reporting
Requirements.  JAZZ shall provide RFMD
with the reports specified in Exhibit C (Reports) or otherwise as
mutually agreed to in writing by the Parties.

 

7.             WARRANTY AND
DISCLAIMER.

 

7.1          Wafer
Warranty.  For a period of [...***...] from the date of delivery (the
“Wafer
Warranty Period”), JAZZ warrants that the Wafers, other
than Risk Materials, delivered hereunder will conform to and be manufactured in
accordance with the Wafer Acceptance Criteria, and will be free from defects in
material, manufacturing and workmanship. 
If, during the Wafer Warranty Period, a breach of this warranty is
discovered in any Wafers, then JAZZ shall work with RFMD to determine the cause
of such defect and appropriate corrective measures, and, at RFMD’s option, (i) promptly
begin production to replace the defective Wafers, or (ii) provide RFMD
with a credit equal to the purchase price of such Wafers to be applied towards
future purchases of Wafers by RFMD.  For
the avoidance of doubt, a breach of the foregoing warranty will not give rise
to any termination provision under Section 11 (Term; Termination)
provided that JAZZ provides the foregoing express and exclusive remedy for any
breach of this warranty.

 

7.2          Disclaimers.
 EXCEPT FOR THE EXPRESS WARRANTIES
SET FORTH IN THIS SUPPLY AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED OR OTHERWISE, IN CONNECTION WITH THIS SUPPLY
AGREEMENT OR ANY WAFERS OR SERVICES PROVIDED UNDER THIS SUPPLY AGREEMENT, AND
EACH PARTY SPECIFICALLY DISCLAIMS THE IMPLIED WARRANTIES AND CONDITIONS OF
MERCHANTABILITY, FITNESS FOR PARTICULAR PURPOSE AND NONINFRINGEMENT.

 

8.             INDEMNIFICATION.

 

8.1          RFMD Indemnification Obligations.  RFMD agrees to
indemnify, hold harmless and defend at its own expense any liability or cost
associated with any claim, suit, or action (collectively, “Claims”)
asserted or brought against JAZZ, its Affiliates and its subsidiaries, and
their respective officers,

 

6

 

directors, employees, agents, and
representatives by a third party to the extent that such Claim alleges that RFMD’s
specifications or designs used in the production of Wafers infringe on any
patent, copyright, or any other intellectual property right (a “RFMD Infringement
Claim”).  RFMD
will pay such damages awarded against JAZZ by a court of competent
jurisdiction, or agreed to in a monetary settlement of any such Claim by RFMD,
to the extent that such damages are directly attributable to a RFMD
Infringement Claim.  RFMD’s
indemnification obligation will not apply to RFMD Infringement
Claims to the extent they result from or are attributable to (a) any
modifications, combinations, or improvements made to the design or
specification as furnished to JAZZ by RFMD that are not
agreed to by RFMD; or (b) use of the design or
specification by JAZZ for any purpose other than providing Wafers to RFMD.

 

8.2          JAZZ
Indemnification Obligations.  JAZZ
agrees to indemnify, hold harmless and defend at its own expense any liability
or cost associated with any Claim asserted or brought against RFMD,
its Affiliates and it subsidiaries, and their respective officers, directors,
employees, agents, and representatives by a third party to the extent that such
Claim alleges that JAZZ’s use of technology, equipment, processes, or methods
to manufacture the Wafers or provide the Probe Services infringes upon any
patent, copyright, or any other intellectual property right, other than any
such Claim that is a RFMD Infringement Claim (a “JAZZ
Infringement Claim”). 
JAZZ will pay such damages awarded against RFMD
by a court of competent jurisdiction, or agreed to in a monetary settlement of
any such Claim by JAZZ, to the extent that such damages are directly
attributable to a JAZZ Infringement Claim. 
JAZZ’s indemnification obligation hereunder will not apply to JAZZ
Infringement Claims alleging infringement by any technology, equipment,
processes, or methods that were provided by RFMD to JAZZ.  For the avoidance of doubt, if JAZZ modifies,
improves, or combines any such technology equipment, processes, or methods, the
foregoing indemnification obligation will apply to the extent that JAZZ
Infringement Claims are directed at the modifications, improvements, or
combinations, except for modifications, improvements, or combinations performed
at the direction of RFMD or its Affiliates.

 

8.3          Conditions.
 The obligations of the indemnifying
Party (the “Indemnifying Party”) under Section 8.1
(RFMD Indemnification Obligations) or Section 8.2 (JAZZ
Indemnification Obligations) with respect to a RFMD Infringement
Claim or JAZZ Infringement Claim (as applicable) (an “Infringement
Claim”) are subject to the following conditions: (a) the
indemnified Party (the “Indemnified Party”)
must promptly notify the Indemnifying Party in writing of such Infringement
Claim; (b) the Indemnifying Party must have sole control of the defense
and settlement of the Infringement Claim; and (c) the Indemnified Party
must fully cooperate with and provide reasonable assistance to the Indemnifying
Party in the defense and settlement of such Infringement Claim (which includes
furnishing to the Indemnifying Party all evidence in the possession of the
Indemnified Party that is relevant to such Infringement Claim).  The Indemnifying Party will not accept a
settlement or stipulated judgment of any RFMD Infringement
Claim or JAZZ Infringement Claim (as applicable) without the prior written
consent of the Indemnified Party, which consent will not be unreasonably
withheld.  The Indemnifying Party will
have no liability under this Section 8 (Indemnification) for any
costs, losses, liabilities, or damages resulting from the willful acts of the
Indemnified Party or any settlement or compromise incurred or made by the
Indemnified Party without the Indemnifying Party’s prior written consent.  The Indemnified Party will have the right to
participate, at its own expense, in the defense or settlement of the
Infringement Claim.

 

8.4          Sole
and Exclusive Remedy.  This Section 8
(Indemnification) states the Indemnifying Party’s entire liability and the
Indemnified Party’s sole remedy with respect to the infringement, violation, or
misappropriation of any intellectual property rights of any third party arising
from or relating to this Supply Agreement, subject to Section 10.1.  Each Party’s obligations under this Section 8
(Indemnification) are subject to the limitations of liability set forth in Section 10
(Limitations of Liability).

 

7

 

9.             CONFIDENTIALITY.

 

The Parties acknowledge that any nonpublic
information disclosed or provided by one Party to another Party in connection
with this Agreement will be subject to the Confidentiality Agreement between
the Parties dated                         ,
2002.  The terms and conditions of this
Supply Agreement (including the pricing information contained herein) will be
considered to be the Confidential Information (as defined in the
Confidentiality Agreement) of both parties.

 

10.          LIMITATIONS OF
LIABILITY.

 

10.1        DISCLAIMER.
 EXCEPT FOR INTENTIONAL, RECKLESS OR
GROSSLY NEGLIGENT BREACHES OF THIS AGREEMENT, IN NO EVENT WILL EITHER PARTY BE
LIABLE TO THE OTHER PARTY FOR LOST PROFITS OR FOR ANY INDIRECT, INCIDENTAL,
CONSEQUENTIAL, SPECIAL, OR EXEMPLARY DAMAGES ARISING FROM THE SUBJECT MATTER OF
THIS SUPPLY AGREEMENT, REGARDLESS OF THE TYPE OF CLAIM AND EVEN IF THAT PARTY
HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. FURTHER, IN NO EVENT WILL JAZZ’S AGGREGATE LIABILITY
(INCLUDING ATTORNEY’S FEES) TO RFMD HEREUNDER EXCEED THE TOTAL VALUE OF PAYMENTS
MADE BY RFMD TO JAZZ FOR WAFERS UNDER THIS AGREEMENT, EXCEPT THAT THIS LIMITATION
SHALL NOT APPLY TO ANY INTENTIONAL, RECKLESS OR GROSSLY NEGLIGENT BREACH BY
JAZZ OF SECTION 9 OF THIS AGREEMENT.

 

10.2        BASIS
OF BARGAIN.  EACH PARTY ACKNOWLEDGES
THAT THE MUTUAL LIMITATIONS OF LIABILITY CONTAINED IN THIS SECTION 10
(LIMITATIONS OF LIABILITY) REFLECT THE ALLOCATION OF RISK SET FORTH IN THIS
SUPPLY AGREEMENT AND THAT EACH PARTY WOULD NOT ENTER INTO THIS SUPPLY AGREEMENT
WITHOUT THESE LIMITATIONS OF LIABILITY.

 

11.          TERM;
TERMINATION.

 

11.1        Term
This Supply Agreement will take effect on the Effective Date and will
remain in effect for a period of five (5) years from the Effective Date
(the “Initial Term”), unless earlier
terminated in accordance with this Section 11 (Term;
Termination).  Following the Initial
Term, this Supply Agreement may be renewed for additional one-year renewal
terms (each a “Renewal Term”), upon mutual
agreement of the Parties.

 

11.2        Termination.
 This Supply Agreement may be
terminated at any time as follows:

 

(a)           by written agreement of the Parties;

 

(b)           by either Party, at its discretion
upon written notice to the other Party, if the other Party materially breaches
any provision of this Supply Agreement and such breach is not cured within
sixty (60) days after written notice of such breach is furnished by the
non-breaching Party;

 

(c)           by either Party, at its discretion,
if (i) the other Party becomes insolvent, admits in writing its inability
to pay its debts as they become due, or files or has filed against it any
proceeding in bankruptcy or for reorganization under any federal bankruptcy law
or similar state law, or has any receiver appointed for all or a substantial
part of such Party’s assets or business, or makes any assignment for the
benefit of its creditors, or enters into any other proceeding for debt relief,
and such proceeding is not dismissed within sixty (60) days of filing or (ii) the
other Party dissolves, liquidates, or institutes any proceedings for the
liquidation or winding up of its business.

 

11.3        Survival.
 The rights and obligations under Sections
1 (Definitions), 5.2 (Wafer Credits), 7 (Warranty and
Disclaimer), 8 (Indemnification), 9 (Confidentiality), 10
(Limitations of Liability),

 

8

 

11.3 (Survival),
and 12 (General) will survive termination or expiration of this Supply
Agreement for any reason.

 

12.          GENERAL.

 

12.1        Agency.
 Under this Supply Agreement (i) each
Party will be deemed to be an independent contractor and not an agent, joint
venturer, or representative of the other Party; (ii) neither Party may
create any obligations or responsibilities on behalf of or in the name of the
other Party; and (iii) neither Party will hold itself out to be a partner,
employee, franchisee, representative, servant, or agent of the other Party.

 

12.2        Governing
Law; Venue and Jurisdiction.  This
Supply Agreement will be governed by, subject to, and construed in accordance
with the internal laws of the State of Delaware, as such laws apply to
contracts between Delaware residents performed entirely within Delaware.  The Parties agree that the United Nations
Convention on Contracts for the International Sale of Goods will not apply to
this Supply Agreement.

 

12.3        Dispute
Resolution.  The Parties will act in
good faith and use commercially reasonable efforts to promptly resolve any
claim, dispute, controversy or disagreement arising out of or relating to or in
connection with this Supply Agreement or the breach, termination or validity
hereof (each a “Dispute”) between the
Parties under or related to this Supply Agreement or any of the transactions
contemplated hereby.

 

(a)           Upon the written request (a “Request”) of a Party, the other
Party shall commence good faith negotiations with the goal of resolving the
Dispute on a mutually satisfactory basis. 
If the Dispute has not been resolved to the satisfaction of the Parties
within fifteen (15) days after the date on which the Request is delivered, the
Dispute shall immediately be referred to senior officers of each Party.  The senior officers of each Party (e.g., chief executive officer) shall meet immediately, and
in no case later than thirty (30) days after the date on which the Request is
delivered, for a minimum of two (2) Business Days with a mutually selected
mediator and attempt in good faith to negotiate a resolution of the
Dispute.  If the Parties are unable to
resolve the Dispute within thirty-five (35) days after the date on which the
Request is delivered, then any relevant Party may submit the Dispute to
arbitration as the exclusive means of resolving it in accordance with the
procedures set forth in this Section 12.3.

 

(b)           Except as otherwise specified in
this Section 12.3, any Dispute not resolved through the procedure
set forth above shall be finally settled by arbitration in accordance with the
International Rules and Procedures of the American Arbitration Association
(the “Arbitration Rules”), which are
deemed to be incorporated by reference herein except as otherwise modified
herein.

 

(c)           The arbitration situs shall be
Wilmington, Delaware, and the laws of the State of Delaware shall be applied.

 

(d)           In the event of arbitration, there
shall be one arbitrator who shall be jointly nominated by such parties. If the
Parties fail to so nominate the arbitrators within thirty (30) days from the
date when the Dispute is submitted to arbitration pursuant to this Section 13.3,
at the request of any Party, the arbitrator(s) shall be appointed in accordance
with the Arbitration Rules.

 

(e)           The arbitration hearing shall
commence no later than ninety (90) days following the appointment of the sole
arbitrator, as the case may be, and the final award shall be rendered no later
than thirty (30) days following the close of the hearing.

 

9

 

(f)            Consistent with the expedited nature
of arbitration, each Party will, upon the written request of the other Party,
provide the other with copies of documents relevant to the issue raised by any
claim or counterclaim.  Other discovery
may be ordered by the arbitrator to the extent the arbitrator deems additional
discovery relevant and appropriate, and any dispute regarding discovery,
relevance or scope thereof, shall be determined by the arbitrator, which
determination shall be conclusive.

 

(g)           By agreeing to arbitration, the
Parties do not intend to deprive any court of its jurisdiction to issue a
pre-arbitral injunction, pre-arbitral attachment, injunctive or other equitable
relief or an order in aid of arbitration proceedings and the enforcement of any
award.  Without prejudice to such
provisional remedies in aid of arbitration as may be available under the
jurisdiction of a national court, the arbitral tribunal shall have full
authority to grant provisional remedies and to award damages for the failure of
any party to respect the arbitral tribunal’s orders to that effect.

 

(h)           The award shall be final and binding
upon the Parties, and shall be the sole and exclusive remedy between the
Parties regarding any claims, counterclaims, issues, or accounting presented to
the arbitral tribunal in connection with the Dispute.  Judgment upon any award may be entered in any
court having competent jurisdiction thereof.

 

(i)            The costs of the arbitration shall
be borne as determined in accordance with the Arbitration Rules; provided, however, that to the extent a Party is
non-prevailing or unsuccessful on a claim in an arbitration proceeding under
this Section 12.3 as determined by the arbitrator, that Party shall
pay the prevailing or successful Party’s costs and expenses incurred in
connection with the arbitration of that Dispute, including attorneys’ fees and
arbitration expenses, whether or not such Dispute is prosecuted to award or
judgment.

 

(j)            Subject to the receipt of any
applicable governmental approval, any monetary award shall be made and promptly
payable in U.S. dollars, if due in U.S. dollars, free of any deduction or
offset, and the arbitral tribunal shall be authorized in its discretion to grant
pre-award and post-award interest at commercial rates.  The arbitral tribunal shall have the
authority to award any remedy or relief proposed by the claimants or
respondents pursuant to this Supply Agreement, including without limitation, a
declaratory judgment, specific performance of any obligation created under this
Supply Agreement or the issuance of an injunction.

 

12.4        Third-Party
Beneficiaries.  There are no
third-party beneficiaries of this Supply Agreement.  Except for the pricing established under this
Supply Agreement, and any rights of RFMD’s Affiliates
set forth herein to purchase Wafers from JAZZ subject to such pricing, no
provision of this Supply Agreement, express or implied, is intended or will be
construed to confer upon or give to any customer or other person other than the
Parties any rights, remedies, or other benefits under or by reason of this
Supply Agreement.

 

12.5        Compliance
with Law.  The Parties will at all
times comply with all applicable foreign, U.S., state, and local laws, rules and
regulations relating to the execution, delivery and performance of this Supply
Agreement.  Each Party agrees that it
will not export or reexport, resell, ship, or divert or cause to be exported or
reexported, resold, shipped, or diverted directly or indirectly any software,
documentation, or technical data incorporating any software to any country for
which the government (or any agency thereof) of the United States, or any
foreign sovereign government with competent jurisdiction requires an export license
or other governmental approval without first obtaining such license or
approval.

 

12.6        Force
Majeure. Neither Party shall be liable for failure or delay in performance
of its obligations under this Supply Agreement to the extent such failure or
delay is caused by an act of God, act of a public enemy, war or national
emergency, rebellion, insurrection, riot, epidemic, quarantine restriction,

 

10

 

fire, flood, explosion, storm, earthquake,
interruption in the supply of electricity, power, or energy, or other
catastrophe, terrorist attack, labor dispute or disruption of such Party’s
suppliers, or other event beyond the reasonable control of such Party.  If a Party’s performance under this Supply
Agreement is affected by a force majeure event, such Party shall give prompt
written notice of such event to the other Party and shall at all times use its
reasonable commercial efforts to mitigate the impact of the force majeure event
on its performance under this Supply Agreement. 
In the event of a force majeure event as described in this Section that
affects either or both Parties’ ability to perform under this Supply Agreement,
the Parties agree to cooperate in good faith in order to resume the
transactions contemplated by this Supply Agreement as soon as commercially
possible to the extent commercially reasonable.

 

12.7        Amendment;
Later Agreement.  This Supply
Agreement may not be amended, modified, or supplemented by the Parties in any
manner, except by an instrument in writing signed by RFMD
and JAZZ and specifically reciting that it amends this Supply Agreement.  No purchase order or acknowledgement will
amend this Supply Agreement, and all purchase orders or acknowledgements shall
be subject to the terms and conditions of this Agreement regardless of
statements to the contrary contained within the purchase order or
acknowledgment.  All matters designated
herein as subject to agreement of the Parties must be agreed upon in a writing
signed by authorized representatives of both Parties for such agreement to be
effective.

 

12.8        Notices.
 Any notice, consent, approval, or
other communication intended to have legal effect to be given under this Supply
Agreement (other than a purchase order or invoice) must be in writing and will
be delivered (as elected by the Party giving such notice): (i) personally;
(ii) by postage prepaid registered or certified airmail, return receipt
requested; (iii) by express courier service; or (iv) by facsimile
with a confirmation copy deposited prepaid with an express courier
service.  Unless otherwise provided
herein, all notices will be deemed to have been duly given on: (y) the date of
receipt (or if delivery is refused, the date of such refusal) if delivered
personally, by mail, or by express courier; or (z) one (1) business day
after receipt by telecopy if the telecopy was accompanied by the mailing of the
notice via courier service.  Each Party
may change its address for purposes hereof on not less than three (3) days’
prior notice to the other Party.  Notice
hereunder will be sent to the following addresses (with a copy to the legal
department):

 

	
  If to RFMD, to:

  	
  If to JAZZ, to:

  
	
   

  	
   

  
	
  RF Micro Devices, Inc.

  	
  Newport Fab, LLC.

  
	
  7628 Thorndike Road,

  	
  4321 Jamboree Road

  
	
  Greensboro, NC 27409-9421.

  	
  Newport Beach, CA 92660

  
	
  Attn: Chief Financial Officer

  	
  Attn: Legal Counsel

  
	
  Telecopy: (336) 931-7655

  	
  Telecopy: (949) 435-8455

  
	
   

  	
   

  
	
  With copy to:

  	
  With copy to:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Womble Carlyle Sandridge & Rice,
  PLLC

  	
  The Carlyle Group

  
	
  200 West Second Street

  	
  101 S. Tryon Street, 25th Floor

  
	
  Winston-Salem, NC 27101

  	
  Charlotte, NC 28280

  
	
  Attn: Jeffrey C. Howland, Esq.

  	
  Attn: Claudius E. Watts, IV

  
	
  Facsimile: (336) 733-8371

  	
  Telecopy: (704) 632-0299

  

 

12.9        Assignment.
 Except as otherwise expressly
provided in this Supply Agreement, neither Party shall be permitted to assign
any of its rights or delegate any of its obligations under this Supply

 

11

 

Agreement without the prior written consent
of the other Party; except that (i) JAZZ may, without such consent, assign
all such rights to any Affiliate controlling JAZZ or to any Person providing
cash financing to the JAZZ as collateral security for such financing provided
that no such assignment shall relieve JAZZ from any of its obligations
hereunder, (ii) RFMD may, without such consent, assign all such
rights to any Affiliate controlling RFMD, provided that
no such assignment shall relieve RFMD from any of its
obligations hereunder, and (iii) either Party may, without the other Party’s
consent, assign all rights to any entity which acquires, directly or
indirectly, all or any substantial portion of the assets or securities of such
Party subject to the rights of RFMD under the Second Amended and Restated
Stockholder Agreement, dated as of October 15, 2002, by and among the
Company, RFMD and the other parties thereto. 
Any unauthorized assignment or transfer shall be null and void.  This Supply Agreement shall be binding upon
and inure solely to the benefit of each Party and its successors and permitted
assigns.

 

12.10      Waiver.
 If a Party fails to insist on
performance of any of the terms and conditions, or fails to exercise any of its
rights or privileges of this Supply Agreement, such failure will not constitute
a waiver of such terms, conditions, rights, or privileges.

 

12.11      Severability.
 If the application of any provision
or provisions of this Supply Agreement to any particular facts or circumstances
is held to be invalid or unenforceable by any court of competent jurisdiction,
then: (i) the validity and enforceability of such provision or provisions
as applied to any other particular facts or circumstances and the validity of
other provisions of this Supply Agreement will not in any way be affected or
impaired thereby; and (ii) such provision or provisions will be reformed
without further action by the Parties and only to the extent necessary to make
such provision or provisions valid and enforceable when applied to such
particular facts and circumstances.

 

12.12      Counterparts
and Facsimile This Supply Agreement may be executed in any number of
counterparts, each of which when so executed and delivered will be deemed an
original, and such counterparts together will constitute one and the same
instrument.  The Parties intend that each
Party will receive a duplicate original of the counterpart copy or copies
executed by it.  For purposes hereof, a
facsimile copy of this Supply Agreement, including the signature pages hereto,
will be deemed to be an original.

 

12.13      Rules of
Construction.  As used in this Supply
Agreement, all terms used in the singular will be deemed to include the plural,
and vice versa, as the context may require. 
The words “hereof,” “herein,” and “hereunder” refer to this Supply
Agreement as a whole, including the attached exhibits, as the same may from
time to time be amended or supplemented, and not to any subdivision in this
Supply Agreement.  When used in this
Supply Agreement, unless otherwise expressly stated, “including” means “including,
without limitation” and “discretion” means sole discretion.  Unless otherwise expressly stated, when a
Party’s approval or consent is required under this Supply Agreement, such Party
may grant or withhold its approval or consent in its discretion.  References to “Section” or “Exhibit” will be
to the applicable section or exhibit of this Supply Agreement.  Descriptive headings are inserted for
convenience only and will not be utilized in interpreting the Supply
Agreement.  This Supply Agreement has
been negotiated by the Parties and reviewed by their respective counsel and
will be fairly interpreted in accordance with its terms and without any strict
construction in favor of or against either Party.

 

12.14      Entire
Agreement.  As to the subject matter
hereof: (i) this Supply Agreement, including its exhibits, sets forth the
entire agreement between RFMD and JAZZ; (ii) no promise, inducement,
understanding, or agreement not expressly contained herein has been made; and (iii) this
Supply Agreement merges and supersedes any and all previous agreements,
understandings, and negotiations between the Parties concerning the subject
matter hereof.

 

[The remainder of this page is intentionally left blank.]

 

12

 

IN WITNESS WHEREOF,
the parties have executed this Supply Agreement as of the Effective Date by the
undersigned duly authorized representatives of each party.

 

 

	
  RF MICRO DEVICES, INC.

  

  

  a North Carolina corporation

  	
  NEWPORT FAB, LLC d/b/a JAZZ

  SEMICONDUCTOR

  

  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  \s\ Jerry D. Neal

  	
   

  	
  By:

  	
  \s\ Scott Silcock

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Jerry D. Neal

  	
   

  	
  Name:

  	
  Scott Silcock

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Executive Vice President of
  Marketing and

  	
  Title:

  	
  Vice President Operations

  	
   

  
	
   

  	
  Strategic Development

  	
   

  	
   

  	
   

  

 

 

EXHIBIT A
- PRICING

 

WAFER PRICING.

 

Basic Price. 
For Wafers purchased by RFMD,
and as otherwise set forth in this Supply Agreement, the price of the Wafers
shall be the “Basic Price,” determined as
set forth below. Each party can request to modify the Basic Price but no more
frequently than once every three months. 
The Basic Price shall only be modified by mutual written consent of both
parties and the new Basic Price shall become effective upon the next Purchase
Order placed by RFMD.  The initial Basic
Price used for this Agreement is listed below. 
Any changes to the Basic Price shall be established through amendments
to this Exhibit A, which shall be labled Exhibit A-1, A-2, etc.,
which amendments shall be effective when signed by the parties.

 

Basic Price

 

	
  Technology

  Description

  	
   

  	
  Wafer

  Size

  	
   

  	
  Fab Location

  	
   

  	
  CY 2002

  	
   

  	
  CY 2003

  	
   

  	
  CY 2004

  	
   

  	
  CY

  2005-2007

  	
   

  
	
  SiGe60-M

  	
   

  	
  8”

  	
   

  	
  Newport
  Beach

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  
	
  SiGe60-QT

  	
   

  	
  8”

  	
   

  	
  Newport
  Beach

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  
	
  SiGe90-M

  	
   

  	
  8”

  	
   

  	
  Newport
  Beach

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  
	
  SiGe90-QTD

  	
   

  	
  8”

  	
   

  	
  Newport
  Beach

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  
	
  CL25Q

  	
   

  	
  8”

  	
   

  	
  Newport
  Beach

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  
	
  CA18Q
  Digital

  	
   

  	
  8”

  	
   

  	
  Newport
  Beach

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  
	
  CR18PW54

  	
   

  	
  8”

  	
   

  	
  Newport
  Beach

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
  [...***...]

  	
   

  

 

*  The Basic Price shall equal
the lesser of the stated price in the table or the then current market
price.  The market price shall be the
average global price for substantially equal Wafers, technology, quantity, and
delivery.  If no global average price is
available, the average price of Jazz Customers, exclusive on Conexant and
Conexant affiliates and or spin offs.

 

Wafer Lead Times (Days)

 

	
  Technology

  Description

  	
   

  	
  # of Mask

  Layers

  	
   

  	
  Engineering/Pre

  –Production

  	
   

  	
  Standard

  Production

  	
   

  	
  Hot Lots

  	
   

  	
  Super Hot

  Lots

  	
   

  
	
  SiGe60-M

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  SiGe60-QT

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  SiGe90-M

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  SiGe90-QTD

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  CL25Q

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  CA18W
  Digital

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  CR18P

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

 

Lead time includes Order Management, Wafer
Processing, and PCM Test only.

 

Mask set generation or mask layer changes will add [...***...] days to the
above cycle times.

 

	
  Dated:

  	
   

  	
   

  

 

 

	
  RF MICRO DEVICES, INC.

  	
  NEWPORT FAB, LLC d/b/a JAZZ SEMICONDUCTOR

  
	
   

  	
   

  
	
  A North Carolina corporation

  	
  A Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
										

 

 

[SIGNATURES
REQUIRED FOR AMENDMENTS TO EXHIBIT A ONLY.]

 

15

 

EXHIBIT B

 

WAFER
FORECAST

 

Number of 8” Wafers per year (K)

 

	
   

  	
   

  	
  CY03

  	
   

  	
  CY04

  	
   

  	
  CY05

  	
   

  	
  CY06

  	
   

  	
  CY07

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SiGe
  Baseline

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CMOS
  Baseline

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

 

EXHIBIT C

 

-REPORTS

 

JAZZ shall prepare and provide the following
reports to RFMD.  Such reports shall be
comparable in form, substance, and content to those reports prepared by the
Newport Beach Fab for its customers generally as of the Effective Date and
shall be provided in accordance with the schedule and in the form
specified below:

 

1.             Work
in process (WIP) reports – daily; electronic form

 

2.             E-Test
(WAT/PCM) data – upon request; electronic form

 

3.             Customer
line item performance (CLIP) – upon request; electronic or paper form

 

 

EXHIBIT D

 

MAP SAMPLE SIZE

 

The table below lists the standard map sample
size (by process type) for lots manufactured in Newport Beach.

 

	
  Process

  	
   

  	
  No of wafers/lot

  	
   

  	
  No of sites/wafer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CO8*

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CO6*

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CO5*

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C_35*

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C_25*

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bipolar
  (BX25*)

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BiCMOS
  (BC35*)

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C*18*

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Any STR

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Any E-Lot

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Any CFS lot

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SBC35*

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SBC18*

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

12.15      SiGe50 PCM
Parameters

 

	
  TEST NAME

  	
   

  	
  DEVICE NAME

  	
   

  	
  TEST UNITS

  	
   

  	
  LOW LIMIT

  	
   

  	
  TARGET

  	
   

  	
  HIGH

  LIMIT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

 

	
  TEST NAME

  	
   

  	
  DEVICE NAME

  	
   

  	
  TEST UNITS

  	
   

  	
  LOW LIMIT

  	
   

  	
  TARGET

  	
   

  	
  HIGH

  LIMIT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

vi

 

	
  TEST NAME

  	
   

  	
  DEVICE NAME

  	
   

  	
  TEST UNITS

  	
   

  	
  LOW LIMIT

  	
   

  	
  TARGET

  	
   

  	
  HIGH

  LIMIT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
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[...***...]

 

viiExhibit 10.36

 

LICENSE AND SUPPLY AGREEMENT

 

THIS
AGREEMENT, is made and entered into this 16th day of
December, 2003 (“Effective
Date”) by and between NEWPORT FAB, LLC,
a Delaware limited liability company d/b/a Jazz Semiconductor (“Jazz”), and ADVANCE SEMICONDUCTOR MANUFACTURING CORP. OF SHANGHAI, a
corporation formed under the laws of the Peoples Republic of China (“ASMC”) (hereinafter
Jazz and ASMC may each be referred to as a “party”
and may be jointly referred to as “parties”).

 

PURPOSES

 

ASMC has committed to
provide Jazz with semiconductor products utilizing manufacturing capacity at
ASMC’s facility in Shanghai, Peoples Republic of China that ASMC has reserved
for the exclusive use of Jazz. This Agreement provides the terms and conditions
for the manufacture of such products by ASMC for Jazz, including the use of the
information and know-how of Jazz in order to meet Jazz’s needs for Wafers, and
for no other purpose.

 

In consideration of the
mutual promises of the parties hereto, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto, intending to be legally bound, do hereby agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

In this Agreement, unless
otherwise defined or the context otherwise requires, the following words and
expressions shall have the following meanings:

 

1.1           “Affiliate” shall mean
and include, with respect to either of the parties, any Person that directly or
indirectly controls, is controlled by or is under common control with such
specified Person.

 

1.2           “Aggregate Wafer Receipts”
shall mean an aggregate amount equal to the sum of (i) the ASMC Net Income and
(ii) the Jazz Net Income.

 

1.3           “ASMC’s Facility”
shall mean ASMC’s facility located at 385 Hong Cao Road, Shanghai 200233,
Peoples Republic of China.

 

1.4           “ASMC
Net Income” shall mean the aggregate gross revenue of ASMC
resulting from the sale of the Wafers to Jazz pursuant to this Agreement,
determined as of the date of the finding of infringement.

 

1.5           “CMOS” and “BiCMOS” shall refer to complementary metal oxide
semiconductor devices and bipolar complementary metal oxide semiconductor
devices, respectively.

 

1.6           “Damages” shall mean
any and all demands, claims, actions or causes of action, assessments, losses,
diminution in value, damages (including special and consequential damages),
liabilities, costs, and expenses, including without limitation, interest,
penalties, cost of investigation and defense, and reasonable attorneys’ and
other professional fees and expenses.

 

Confidential
treatment is being requested for portions of this document.  This copy of
the document filed as an exhibit omits the confidential information
subject to the confidentiality request.  Omissions are designated by the
symbol [...***...].  A complete version of this document has been filed
separately with the Securities and Exchange Commission.

 

 

1.7           “Delivery
Date” shall mean a date for delivery of an agreed upon quantity
of Wafers ordered by Jazz as set forth in any Jazz order.

 

1.8           “Intellectual
Property Rights” shall mean all patents and all patent applications
(including, without limitation, originals, divisions, continuations,
continuations-in-part, CPA’s, RCE’s, provisional, extensions or reissues),
design rights (whether registered or not and all applications for the
foregoing), copyrights, database rights, topography rights, mask work rights,
applications to register any of the aforementioned rights, trade secrets,
rights in unpatented know-how, rights of confidence and any other intellectual
or industrial property rights of any nature whatsoever in any part of the
world.

 

1.9           “Lead-time” shall mean
the estimated amount of time required from order placement to delivery as
agreed to by the parties.

 

1.10         “Jazz Net Income”
shall mean the aggregate gross revenue of Jazz resulting from the sale of the
Wafers to its customers, less
(ii) the aggregate amount paid by Jazz to ASMC pursuant to this Agreement,
determined as of the date of the finding of infringement.

 

1.11         “Jazz Technology”
shall mean all proprietary information and know-how provided to ASMC by Jazz or
any of its Affiliates, no matter what form and including without limitation
information and know-how identified in Confidential Information Transmittal
Report(s) (copies of which shall be provided to Jazz), that relate to Jazz’s
process(es) for the manufacture of Wafers, Jazz’s specifications for Wafers,
Jazz’s performance criteria for Wafers and all other matters relating to Wafers
and their manufacture, including without limitation, information relating to
the products and processes identified in Exhibit
A hereto.

 

1.12         “Jazz Patent Rights”
shall mean those patent rights owned by Jazz during the term of this Agreement.

 

1.13         “Person” shall mean and include
any individual, corporation (including any non-profit corporation), general or
limited partnership, limited liability company, joint venture, estate, trust,
association, organization, labor union, or other entity or governmental body.

 

1.14         “Process” shall mean
Jazz’s process for the manufacture of Wafers as communicated by Jazz or any of
its Affiliates to ASMC or from time to time during the term of this Agreement.

 

1.16         “Term” shall have the
meaning ascribed to it in Article 15.

 

1.17         “Wafers” shall mean
wafers that have been manufactured or processed according to the Process so as
to include or embody any of the products listed on Exhibit B attached hereto.

 

1.18         “Wafer Acceptance Criteria”
shall mean those written Wafer
specifications, engineering requirements, performance criteria, etc. provided
to ASMC by Jazz or any of its Affiliates from time to time during the term of
this Agreement.

 

CONFIDENTIAL 

 

2

 

ARTICLE 2

 

PURCHASE
OF WAFERS; PURCHASE FORECASTS, ETC.

 

2.1           ASMC shall
manufacture Wafers utilizing the Process for Jazz. Jazz will purchase Wafers
manufactured by ASMC in accordance with the terms of this Agreement.

 

2.2           Jazz
shall provide to ASMC on or before [...***...] rolling forecast setting forth its
estimated requirements [...***...] for Wafers. Such rolling forecast shall not
constitute a binding commitment to ASMC to buy the estimated number of Wafers
specified.

 

2.3           With
respect to Specialty Wafers, ASMC shall provide Jazz with sufficient production
capacity at ASMC’s Facility to manufacture at least five thousand (5,000) Wafer
starts per month between the Effective Date and March 2004 and at least ten
thousand (10,000) Wafer starts per month between April 2004 and December 2006. Additionally,
ASMC shall use best efforts to meet Jazz’s demand for Specialty Wafers should
that demand exceed the forgoing minimum quantities.

 

2.4           With
respect to Advanced Specialty Wafers, ASMC shall use best efforts to provide
Jazz with the quantity of Wafers set forth in the [...***...] rolling forecast for all
months after March 2004.

 

2.5           ASMC
shall manufacture Wafers, including, without limitation, Specialty Wafers,
using Jazz Technology and/or the Process exclusively for Jazz. Except as set
forth in Section 2.11, ASMC shall not manufacture Specialty wafers for any
entity other than Jazz, regardless of the process used in the manufacture of
such wafers. ASMC shall have the right to manufacture CMOS and BiCMOS wafers
for entities other than Jazz, provided that ASMC shall not use the Process, the
Jazz Patent Rights or Jazz Technology, in whole or in part, in such manufacture
without an express license from Jazz.

 

2.6           With
respect to CMOS and BiCMOS Wafers, ASMC shall use best efforts to provide Jazz
with the quantities of Wafers set forth in the [...***...] rolling forecast.

 

2.7           Jazz
shall place its purchase order for Wafers with ASMC in accordance with the
Lead-time.

 

2.8           Jazz shall qualify the suppliers to ASMC of
major equipment, chemicals and other components required to manufacture the
Wafers in accordance with the Process and the terms hereof. Thereafter, such
suppliers may not be changed without [...***...] prior notice so that Jazz may qualify the proposed new supplier

 

2.9           Nothing
herein shall be construed as an obligation on the part of Jazz to purchase any
quantity of Wafers from ASMC.

 

2.10         ASMC
shall use commercially reasonable efforts to refer potential customers for
semiconductor devices to Jazz. If ASMC refers any potential customer(s) with
which Jazz has a commercial relationship, and the referred customer(s) agrees
to purchase Specialty Wafers from Jazz, then Jazz shall give ASMC the first
option to provide Specialty Wafers to Jazz for the referred customer, provided
that the referred customer does not otherwise object to ASMC as a source for
Specialty Wafers.

 

2.11         If
Jazz’s orders for Specialty Wafers for [...***...]
consecutive months are less than [...***...]percent
([...***...]%) of the smaller of:
(1) ASMC’s actual capacity for the manufacture of Specialty Wafers and (2) the
capacity amounts set forth in Section 2.3, then 

 

3

 

ASMC may manufacture
Specialty wafers for third parties, provided that ASMC shall not utilize
Process, Jazz Patent Rights or Jazz Technology in whole or in part, in such
manufacture.

 

2.12         If Jazz
considers obtaining Specialty Wafers from third parties between [...***...], then Jazz shall meet its
requirements of up to [...***...] from ASMC
pursuant to this Agreement provided: (1) the capacity for the manufacture of
Specialty Wafers at all Jazz facilities now owned or hereafter acquired
(including those facilities under complete or partial common ownership) is
full, (2) Jazz’s customer(s) do not object to ASMC as a source of Specialty
Wafers and (3) ASMC agrees to sell such Specialty Wafers to Jazz on terms and
conditions as advantageous, in terms of price, delivery and otherwise, as any
third party offer(s) made to Jazz for the provision of Specialty Wafers.

 

ARTICLE 3

 

ORDERS

 

3.1           Jazz
shall place orders for the Wafers by mail or by facsimile to ASMC or in another
mutually agreed upon way. ASMC shall, within [...***...] after receipt of such orders, send Jazz an acknowledgement
of such orders. ASMC shall regard Jazz’s orders as having most favored customer
status, providing Wafers to Jazz in quantities and on schedules at least as
advantageous as ASMC provides comparable wafers to its two other largest
customers in terms of sales revenues.

 

3.2           The
terms of this Agreement shall supersede the terms of any Jazz purchase order
and/or ASMC’s acknowledgment/acceptance of such purchase order. Although it is
recognized that the parties may, for their respective convenience, desire to
use standardized purchase order forms, acknowledgment forms and other documents
which may contain terms in addition to or at variance with the terms of this
Agreement, no purchase order or acknowledgement will amend this Agreement and
all purchase order or acknowledgements shall be subject to the terms and
conditions of this Agreement regardless of statements to the contrary contained
within the purchase order or acknowledgment.

 

3.3           All
matters designated herein as subject to agreement of the parties must be agreed
upon in a writing signed by authorized representatives of both parties for such
agreement to be effective. All issues that arise during the Term that are not
addressed by the terms herein shall be resolved in accordance with Article 17
below.

 

ARTICLE 4

 

MANUFACTURE
OF WAFERS, ETC.

 

4.1           ASMC
shall manufacture Wafers only according to the Process and only on behalf of
Jazz.

 

4.2           ASMC
shall, at its own expense, install all equipment necessary to produce Wafers
according to Process in the minimum quantities contemplated by this Agreement. Further,
ASMC shall install, at its own expense, all equipment necessary to manufacture
Specialty Wafers in the quantities set forth in Section 2.3 above by June 2003
in accordance with the Process. ASMC shall install, at its own expense,
equipment necessary for a pilot production line of Specialty Wafers by March  2004

 

4

 

and
thereafter shall use its best efforts to expand its production capacity for
Specialty Wafers.

 

4.3           Jazz
shall provide ASMC with Jazz Technology and other technical assistance to
enable ASMC to implement the Process to manufacture Wafers. Prior to the
commercial production of Wafers, Jazz shall verify that ASMC is utilizing the
Process in accordance with Jazz’s specifications to produce Wafers meeting the
Wafer Acceptance Criteria. Absent prior approval and subsequent verification by
Jazz, ASMC shall not deviate from the Process once the process at ASMC’s
Facility is verified.

 

4.4           ASMC
shall provide authorized personnel of Jazz with access to the ASMC Facility in
order to assist ASMC in implementing the Process and, thereafter, to
periodically verify that ASMC is manufacturing Wafers according to the Process,
that Wafers meet Wafer Acceptance Criteria and as otherwise necessary in Jazz’s
discretion to inspect the Process and/or ASMC’s Facility for compliance with
the terms of this Agreement. Jazz shall give reasonable notice of its intent to
inspect ASMC’s Facility.

 

4.5           Jazz
shall provide ASMC with advance written notice of changes in Process and Jazz
Technology relating thereto. With assistance from Jazz, ASMC shall change its process
to comply with any changes, verify the Process as changed and assist Jazz in
verifying the Process as changed.

 

4.6           Each
party shall use its commercially reasonable efforts to complete, and shall bear
its own expenses in connection with, the actions associated with enabling ASMC
to utilize the Process, verifying ASMC’s process, implementing changes to
Process and ensuring that Wafers meet Wafer Acceptance Criteria.

 

4.7           ASMC
shall not use Process or Jazz Technology at any location other than ASMC’s Facility
or for any purpose other than the manufacture of Wafers for Jazz.

 

4.8           Jazz
may at any time request ASMC to [...***...]
and ASMC shall [...***...]. The
manufacture of Wafers shall [...***...]
pending [...***...]. ASMC shall [...***...] within a reasonable time after
receipt of Jazz’s written request, subject to Jazz’s agreement to bear all
expenses incurred by ASMC in [...***...].
If Jazz [...***...] for more than
ninety (90) days, then ASMC may, at its option, cancel the order. If an order
for Wafers is cancelled after ASMC has [...***...],
Jazz shall pay to ASMC a cancellation fee based on [                               ].

 

ARTICLE 5

 

LICENSE,
INTELLECTUAL PROPERTY, ACKNOWLEDGEMENT

 

5.1           Jazz
hereby grants to ASMC a non-exclusive, non-transferable, royalty-free license
to use the Jazz Technology and Jazz Patent Rights that can be licensed by Jazz
(including the Intellectual Property Rights of Jazz therein) to manufacture
Wafers at ASMC’s Facility solely on behalf of Jazz. This license shall not be
exercised at any other facility or for the manufacture of Wafers for any other
entity. Upon termination of this Agreement, the license granted herein shall
terminate automatically.

 

5.2           ASMC
hereby agrees and acknowledges that Jazz is the sole owner of and shall retain
all ownership right, title, and interest in Jazz Technology and Jazz Patent
Rights.

 

5

 

5.3           ASMC
shall not contest or oppose or otherwise participate in or support any
challenge, including without limitation a challenge to ownership, validity,
scope, or enforceability of Jazz Technology or Jazz Patent Rights nor shall it
participate in or support in any way any reissue, reexamination or
reconsideration thereof, with the exception of the ability to challenge the
validity of United States patents as permitted under applicable law.

 

5.4           ASMC
shall sign or cause to be signed all documents necessary to perfect Jazz’s
ownership rights in Jazz Technology and Jazz Patent Rights, including all
Intellectual Property Rights therein, including without limitation all
necessary assignments and agreements with its employees, subcontractors or
agents.

 

5.5           ASMC
acknowledges that, except as set forth herein, Jazz reserves to itself all
rights in all fields, territories and technologies under Jazz Technology, Jazz
Patent Rights and the Intellectual Property Rights of Jazz therein. No licenses
are granted, no implied licenses are granted and no rights to grant sublicenses
are transferred to ASMC except those expressly stated herein.

 

ARTICLE 6

 

OWNERSHIP
OF NEWLY DEVELOPED TECHNOLOGY

 

6.1           During
the term of this Agreement and with the written consent of Jazz, the Process
may be improved, modified, refined or otherwise altered by ASMC or by the
parties working in conjunction with one another. Such improvements,
modifications, refinements or other alterations of the Process, whether before
or after the date hereof, shall hereinafter be referred to as “Newly Developed Technology”
and may, but need not necessarily, constitute one or more inventions, whether
patentable or not.

 

6.2           ASMC agrees to promptly disclose any Newly
Developed Technology to Jazz. All Newly Developed Technology and all
Intellectual Property Rights therein shall be owned by Jazz.

 

6.3           For
no longer than the remainder of the term of this Agreement, Jazz hereby grants
to ASMC a non-exclusive, non-transferable, royalty-free license in the Newly
Developed Technology (including newly developed technology developed pursuant
to any agreement with any of Jazz’s Affiliates) and all Intellectual Property
Rights therein to manufacture Wafers at ASMC’s Facility. This license shall not
be exercised at any other facility or for the manufacture of Wafers for any
other entity. Upon termination of this Agreement, the license grant in the
Newly Developed Technology and all Intellectual Property Rights therein shall
terminate automatically.

 

6.4           ASMC
shall sign or cause to be signed all documents necessary to perfect Jazz’s
ownership rights in the Newly Developed Technology and all Intellectual
Property Rights therein, in the Peoples Republic of China or elsewhere,
including without limitation all necessary assignments and agreements with its
employees, subcontractors and agents. ASMC
shall not make any registrations or filings with respect to any Newly Developed
Technology absent the prior written consent of Jazz.

 

6.5           It
is the intent of the parties that ownership of the Newly Developed Technology
and all Intellectual Property Rights therein shall permanently reside in Jazz.
However, should a court of competent jurisdiction find that ASMC owns any
interest in the Newly Developed Technology or 

 

6

 

the Intellectual Property
Rights therein, then ASMC hereby grants to Jazz a worldwide, perpetual,
exclusive, irrevocable, transferable, royalty-free license in the Newly
Developed Technology and all Intellectual Property Rights therein to make,
sell, offer to sell, import and otherwise distribute products that include or
incorporate, in whole or in part, the Newly Developed Technology and the
Intellectual Property Rights therein.

 

ARTICLE 7

 

PRICES
AND PAYMENT

 

7.1           Prices
for Jazz’s purchases of Wafers, are provided in Exhibit B. Orders or changes to Orders increasing the volume
of an existing order shall [...***...]. After the first anniversary of this Agreement, either
party may, from time to time, request the other party to renegotiate pricing
based on changing market conditions. Only price changes agreed to in writing by
both parties shall be effective.

 

7.2           All
prices are stated in U.S. Dollars. All
prices include all taxes, export duties, and other charges imposed by the
Peoples Republic of China and any local governments in the Peoples Republic of
China but are exclusive of all federal, state or local sales, use,
excise, or similar taxes imposed by the United States of America and any local
governments within the United States of America. Any such tax(es) shall be
separately itemized on ASMC’s invoice(s) and paid by Jazz, or, in lieu thereof,
Jazz shall furnish ASMC a properly executed tax exemption certificate prior to
shipment.

 

7.3           ASMC
shall invoice Jazz upon ASMC’s shipment of such Wafers to Jazz. Payments from
Jazz shall be due [...***...] days from the date of ASMC’s invoice or Jazz’s acceptance
of Wafers, whichever occurs later. [Any late payment shall be subject to late
payment charges of [...***...] percent ([...***...]%) per month]. Jazz shall pay the Invoices by wire transfer
or check, payable in U.S. Dollars. Jazz shall make any wire transfer payment
requested by ASMC to the account designated below or as otherwise directed by
ASMC:

 

Bank:

Location:

Account Name:

Account Number:

ABA/Routing:

 

ARTICLE 8

 

TERMS OF
DELIVERY, PACKING

 

8.1           The
terms of delivery are Ex Works, [                         ].

 

8.2           Wafers
shall be packed in accordance with Jazz’s packing instructions, which shall be
provided to ASMC by Jazz from time to time. Prices for Wafers include the cost
of packing. Each delivery of Wafers to Jazz must include a packing list that
contains at least the Jazz Order number, the quantity of Wafers shipped; the
Process Control Monitor (PCM) data of the shipped Wafers (either as hard copy
or location of web-based data); the date of shipment and the results of any
testing performed on the Wafers pursuant to the Wafer Acceptance Criteria.

 

7

 

8.3           Wafers
shall be shipped via [                         ].
ASMC shall obtain insurance on all Wafers in an amount sufficient to replace
any Wafers that are lost, stolen, or damaged during shipping. [...***...].

 

8.4           ASMC
shall be responsible for complying with all regulations and paying for all
duties relating to the export from the Peoples Republic of China and the import
into the United States of America of Wafers. Jazz shall have no obligation to
ASMC with respect to any regulation or duty relating to the export of or the
import of Wafers. ASMC shall be responsible for meeting all customs
requirements relating to Wafers both in the Peoples Republic of China and in
the United States of America. ASMC shall at all times take necessary steps to
expedite all shipments of Wafers through customs. Prices for Wafers include the
cost of customs compliance.

 

8.5           ASMC
shall be responsible for meeting all import and export controls relating to
Wafers both in the Peoples Republic of China and the United States of America. Jazz
shall provide reasonable assistance in meeting import and export control
requirements. Prices for Wafers include the cost of export control compliance.

 

8.6           Jazz
will promptly notify ASMC concerning any visible damage to Wafers or shipping
containers from shipment. Jazz agrees to reasonably assist ASMC in asserting any claim for such loss or
damage against ASMC’s carrier for the loss or damaged involved.

 

ARTICLE 9

 

DELIVERY
DATES

 

9.1           ASMC
will make best efforts to schedule the Delivery Dates consistent with ASMC’s
Lead-time. The Delivery Date shall be specified in Jazz’s order. ASMC shall
deliver Wafers according to such Delivery Dates.

 

9.2           Unless
otherwise notified by ASMC, all orders will be delivered complete. ASMC will
give Jazz prompt notice if it reasonably expects a delay in a Delivery Date or
if only a portion of the Wafers will be available for delivery to meet a
Delivery Date. For partial shipments, ASMC will deliver the available Wafers
unless directed by Jazz to reschedule a delivery.

 

9.3           If
ASMC cannot deliver the Wafers in accordance with the Delivery Dates, then ASMC
shall, as soon as ASMC becomes aware of the delay, inform Jazz thereof and ASMC
shall propose a new date for delivery (the “New Date”‘). [...***...].

 

ARTICLE
10

 

INSPECTIONS,
QUALITY REQUIREMENTS AND ACCEPTANCE

 

10.1         Wafers
furnished hereunder shall be inspected and/or tested by ASMC prior to shipment
for conformance with the Wafer Acceptance Criteria. No Wafers shall be shipped
by ASMC that fail to meet the Wafer Acceptance Criteria.

 

10.2         Jazz,
at its option, may inspect and/or test Wafers after receipt for conformance
with the Wafer Acceptance Criteria.

 

8

 

10.3         Jazz
shall accept or reject the Wafers in each shipment within [...***...] of its
receipt of Wafers.

 

ARTICLE
11

 

WAFER
WARRANTY AND RETURNS

 

11.1         ASMC
warrants that all Wafers furnished under this Agreement will be free from
defects in material and workmanship and in conformity with the Wafer Acceptance
Criteria. Prior to shipment to Jazz, in the event that ASMC discovers that any of the Wafers do not meet
any one of the Wafer Acceptance Criteria, ASMC shall as soon as reasonably
possible effect the rectification or replacement of the Wafers.
Following the delivery to Jazz, ASMC will, at Jazz’s option, credit or replace
any Wafers that, in Jazz’s discretion, do not conform to this warranty,
provided ASMC is notified of the nonconforming Wafers within thirty (30) days
after Jazz becomes aware of the nonconformity. ASMC shall credit any amounts
paid by Jazz for any Wafers that do not conform to this warranty against the
account of Jazz. All returns shall be shipped Ex Works, Newport Beach,
California, United States of America.

 

11.2         Shipping
and insurance charges for any Wafers returned by Jazz to ASMC shall be at ASMC’s
expense.

 

11.3         The
warranty provided herewith shall be void in the event (a) the Wafers fail,
malfunction or are damaged as a result of improper handling, storage,
processing, test, or packaging by Jazz or (b) the Wafers are altered or damaged
by Jazz.

 

ARTICLE
12

 

REPRESENTATIONS
AND WARRANTIES

 

12.1         ASMC
represents and warrants to Jazz as follows:

 

(a)           ASMC
has the full right, power and authority to enter into and perform its
obligations under this Agreement and this Agreement constitutes a legal, valid
and binding obligation of ASMC, enforceable against ASMC in accordance with its
terms.

 

(b)           The
execution, delivery and performance of this Agreement by ASMC will not result
in the breach of any terms of, or constitute a default under, or conflict with
any obligation of ASMC.

 

(c)           The
execution, delivery and performance of this Agreement by ASMC will not violate
any applicable law, rule, statute or regulation.

 

(d)           The
Process, and ASMC’s use of Process pursuant to the terms of this Agreement and
the manufacture, offer for sale, sale and importation into the United States of
America of Wafers do not infringe upon or violate any patent, copyright, trade
secret or other intellectual property or industrial rights of a third party.

 

(e)           ASMC
will retain sufficient free capacity at ASMC’s Facility to meet its obligations
to manufacture Wafers under this Agreement.

 

9

 

(f)            ASMC
will not make nor will ASMC allow any entity or employee or agent of ASMC to
make unauthorized use of Process or Jazz Technology in the Peoples Republic of
China or elsewhere.

 

12.2         Jazz
represents and warrants to ASMC as follows:

 

(a)           Jazz
has the full right, power and authority to enter into and perform its
obligations under this Agreement and this Agreement constitutes a legal, valid
and binding obligation of Jazz, enforceable against Jazz in accordance with its
terms.

 

(b)           The
execution, delivery and performance of this Agreement by Jazz will not result
in the breach of any terms of, or constitute a default under, or conflict with
any obligation of Jazz.

 

(c)           The
execution, delivery and performance of this Agreement by Jazz will not violate
any applicable law, rule, statute or regulation.

 

(d)           To
Jazz’s knowledge, it has the right to use and to license others to use the Jazz
Technology so as to manufacture Wafers or to have Wafers manufactured by others
on behalf of Jazz in accordance with the Process.

 

(e)           Jazz
has no knowledge of any claim by a third party that any Intellectual Property
Rights of a third party will be infringed by the use of the Jazz Technology in
the manufacture of Wafers pursuant to the Process or by the offer for sale,
sale and importation into the United States of America of Wafers manufactured
pursuant to the Process, which claim, if adversely determined, would have a
material adverse effect on the ability of Jazz to perform its obligations under
the Jazz Agreement and this Agreement.

 

(f)            To
Jazz’s knowledge, Jazz Technology is fit for the particular purpose of
manufacturing Wafers pursuant to the Process provided that ASMC adheres to the
manufacturing specifications provided by Jazz.

 

12.3         EXCEPT AS PROVIDED IN THIS AGREEMENT, THERE ARE NO
EXPRESS WARRANTIES, REPRESENTATIONS, UNDERTAKINGS, OR CONDITIONS (STATUTORY OR
OTHERWISE) BY EITHER PARTY, AND THERE ARE NO IMPLIED WARRANTIES,
REPRESENTATIONS, UNDERTAKINGS, OR CONDITIONS (STATUTORY OR OTHERWISE) BY EITHER
PARTY, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, USAGE OF TRADE,
PAST PRACTICES, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT,
IN THIS AGREEMENT.

 

ARTICLE
13

 

INDEMNIFICATION,
LIMITATION OF LIABILITY

 

13.1         ASMC
shall defend, indemnify and hold harmless Jazz from any costs, loss, damage and
liability, except indirect and consequential damages, which may be incurred by
Jazz on account of (a) any breach by ASMC of this Agreement, including any
inaccuracy or breach of any representation or warranty of ASMC contained
herein, (b) the manufacture of the
Wafers, including, without 

 

10

 

limitation any claims for
injury, death or property damage related to any alleged defect in any Wafers or
the failure of any Wafers to conform to Wafer Acceptance Criteria, or (c) any
allegation that the process or some portion thereof employed by ASMC in the
manufacture of Wafers provided under this Agreement infringes any Intellectual
Property Rights of a third party, except for those portions of the process
employed by ASMC that constitute Jazz Technology and that must be practiced by
ASMC in order to comply with the Process as specified by Jazz. ASMC, at its own
expense, shall defend all suits or actions, provided ASMC is promptly notified
of such suits or actions, given all evidence in Jazz’s possession, and given
reasonable assistance in and sole control of defense thereof and all
negotiations for its settlement or compromise. ASMC shall have no liability to
Jazz for any settlement or compromise incurred or made by Jazz without ASMC’s
prior written consent.

 

13.2         Notwithstanding a breach of any of the
representations and warranties of either of the parties contained in this
Agreement, if either Jazz or ASMC incurs any Damages arising out of or related
to a claim that any portion of the Process employed by ASMC in the manufacture
of the Wafers infringes any United States patent or trade secret rights, then
the other party hereto shall contribute to the amount paid or payable by Jazz
or ASMC as a result of such Damages in such proportion as is determined in the
following sentence. The parties agree that (i) the proportion of such Damages
that ASMC shall bear shall be determined by dividing the ASMC Net Income by the
Aggregate Wafer Receipts and (ii) the proportion such Damages that Jazz shall
bear shall be determined by dividing the Jazz Net Income by the Aggregate Wafer
Receipts.

 

13.3         If
any suit or action alleging patent or trade secret infringement as set forth in
Section 13.2 is filed or threatened against either of the parties and Jazz
determines in its reasonable judgment to settle or compromise such suit or
action, including without limitation by entering into a license to continue the
manufacture, use, sale, offer to sell, importation or other distribution of
Wafers manufactured utilizing the alleging infringing process, then ASMC shall
contribute to the amount paid or payable by Jazz as a result of such settlement
in such proportion as is set forth in Section 13.2. Jazz shall have no
liability to ASMC for any settlement or compromise incurred or made by ASMC in
connection with any suit or action alleging such patent infringement without
Jazz’s prior written consent.

 

13.4         The aggregate liability of ASMC for contribution
pursuant to Sections 13.2 and 13.3 shall not exceed the aggregate gross revenue
of ASMC resulting from the sale of the Wafers to Jazz pursuant to this
Agreement, determined as of the date of the finding of infringement.

 

EACH OF
JAZZ AND ASMC ACKNOWLEDGES AND AGREES THAT, NOTWITHSTANDING A BREACH OF ANY OF
THE REPRESENTATIONS AND WARRANTIES OF THE PARTIES CONTAINED IN THIS AGREEMENT,
THE PROVISIONS CONTAINED IN SECTIONS 13.2 AND 13.3 REFLECT THE MUTUALLY AGREED
UPON ALLOCATION OF RISK WITH RESPECT TO CLAIMS OF PATENT AND/OR TRADE SECRET
INFRINGEMENT BETWEEN THE PARTIES AS SET FORTH IN SECTIONS 13.2 AND 13.3 AND
THAT EACH OF THE PARTIES WOULD NOT HAVE ENTERED INTO THIS AGREEMENT WITHOUT THE
CONTRIBUTION PROVIDED FOR HEREIN.

 

NOTWITHSTANDING
ANYTHING TO THE CONTRARY ELSEWHERE HEREIN AND EXCEPT AS SET FORTH IN SECTIONS
13.2 AND 13.3, NEITHER PARTY SHALL BE LIABLE (WHETHER BASED UPON CONTRACT,
TORT, STATUTORY OR EQUITABLE THEORIES) TO THE OTHER PARTY FOR ANY INCIDENTAL,
INDIRECT, SPECIAL, REMOTE OR CONSEQUENTIAL DAMAGES (INCLUDING BUT NOT LIMITED
TO LOSS OF REVENUE OR PROFITS) ARISING OUT OF THIS AGREEMENT, 

 

11

 

EVEN IF
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR IF SUCH DAMAGES ARE FORESEEABLE.

 

ARTICLE
14

 

CONFIDENTIALITY

 

14.1         In
connection with the transactions contemplated by this Agreement, ASMC will
obtain or have access to Jazz Confidential Information. Jazz Confidential
Information may be disclosed by ASMC only to those persons within ASMC who “need
to know” such information in order to perform their responsibilities under this
Agreement on behalf of ASMC. ASMC will, and will cause each of its employees
to: (a) keep in confidence all Jazz Confidential Information; (b) not use any
Jazz Confidential Information for any purpose other than the performance of
this Agreement; (c) not disclose any Jazz Confidential Information to any third
party without Jazz’s prior written consent; and (d) return all of Jazz
Confidential Information, regardless of form and including, without limitation,
all copies, analyses, derivations and compilations of Jazz Confidential
Information to Jazz within thirty (30) days after the termination of this
Agreement for any reason and, therefore, provide verification by an officer of
ASMC that all Confidential Information has been returned to Jazz.

 

14.2         As
used herein, the term “Jazz
Confidential Information” means information about the business,
assets or operations of Jazz, including but not limited to Jazz Technology,
deemed by Jazz to be of value and not commonly known to others within Jazz’s
industry. Jazz Confidential Information will not include information which ASMC
demonstrates with documentary evidence: (a) was known to the public at the time
of its disclosure, or becomes known to the public after the disclosure through
no action of the receiving party; (b) was in its possession prior to the time
of the disclosure (provided that ASMC did not receive such information from a
party that was subject to a confidentiality agreement with Jazz); or (c) was
developed by ASMC independent of the disclosure by Jazz.

 

14.3         ASMC
agrees that, because the breach or threatened breach of any of the terms of
this Article 14 by ASMC will result in immediate and irreparable injury to
Jazz, Jazz shall be entitled to an injunction restraining ASMC from any such
breach to the fullest extent allowed by law. Any such right of equitable relief
granted to Jazz shall not be deemed to preclude Jazz from seeking money damages
or any other remedy from Jazz and/or its agents in the event of such a breach.

 

14.4         The
terms and conditions of this Agreement are deemed to be confidential, and each
party will maintain such terms and conditions in strict confidence. The terms
of this Agreement may be disclosed only to those persons within ASMC’s and Jazz’s
organizations who “need to know” such information in order to perform their
work responsibilities on behalf of their employer.

 

12

 

ARTICLE 15

 

EFFECTIVE DATE, TERM,
TERMINATION

 

15.1         The
Term of this Agreement shall commence on the Effective Date and continue for a
period of five (5) years therefrom (the “Initial Term”), unless terminated earlier in
accordance with Section 15.2. Upon expiration of the Initial Term, this
Agreement will renew automatically for successive one-year periods unless
terminated by either party with 90 days  written notice prior to the
expiration of any such period.

 

15.2         In
addition to the provisions of Section 15.1, and as otherwise set forth in this
Agreement, this Agreement may be terminated by either party (a) after the
Initial Term with 90 days  written notice to the other
party, (b) after the material breach of this Agreement by the other party which
is not cured within thirty (30) days after the non-breaching party provides the
breaching party with written notice of such breach (other than a failure of
Jazz to pay ASMC for Wafers due to bona fide disputes concerning the
acceptance, delivery or quality of any Wafers produced hereunder), (c) upon the
filing of a petition by the other party seeking to take advantage of any laws,
domestic or foreign, relating to bankruptcy, insolvency, reorganization,
winding up or composition for adjustment of debts after thirty (30) days written
notice to the other party or (d) after twelve (12) consecutive months in which
Jazz does not place an order for Wafers from ASMC.

 

15.3         Upon
termination of this Agreement for any reason:

 

(a)                                  Except
as set forth herein, ASMC shall have no right to make, offer for sale, sell,
export or import Wafers or any other product incorporating or manufactured in
accordance with Jazz Technology, Jazz Patent Rights or Process. ASMC shall have
no right to use, offer for sale, sell or import Wafers or Jazz Technology for
any purpose. Upon termination, ASMC shall discontinue use of Process and the
obligations of Section 14.1 shall apply.

 

(b)                                 ASMC
shall return Jazz Technology to Jazz pursuant to Section 14.1.

 

(c)                                  ASMC
shall immediately cease using and remove all Jazz Technology from the Process
at ASMC’s Facility and certify to Jazz in writing that Process is no longer in
use.

 

(d)                                 At
any time and from time to time during the two (2) year period following the
termination of this Agreement and upon ten (10) days prior written notice, ASMC
shall permit Jazz to inspect ASMC’s Facility to insure compliance with the
obligations of this Agreement.

 

15.4         The
expiration or termination of this Agreement shall not affect the delivery or
payment for Wafers that have been ordered and confirmed prior to such
termination.

 

15.5         The
obligations set forth in Sections 5.2, 5.3 and 5.5 and in Articles 6, 7, 11,
12, 13, 14, 15, 17, 18, 19, and 21 shall survive any cancellation or
termination of this Agreement as described in this Article 15.

 

13

 

ARTICLE 16

 

INSURANCE

 

16.1         ASMC
shall acquire and maintain at its sole cost and expense throughout the Term,
and for a period of five (5) years following the termination or expiration of
this Agreement, comprehensive general liability insurance, including product
liability, completed operations, advertising injury/personal injury,
contractual liability and patent, trademark, trade dress and copyright
liability, underwritten by an insurance company with a Best’s rating of at
least A-/VIII and licensed to do business in all states of the United States of
America. This insurance coverage shall be primary and non-contributory, contain
a waiver of subrogation against additional insureds and provide coverage of not
less than $10,000,000 combined single limit for
personal injury and property damage (on a per occurrence basis) and a
deductible not to exceed $1,000,000. All insurance
policy(ies) shall name Jazz and their respective officers, employees and agents
as additional insured parties, shall contain an endorsement which requires that
notice be given to Jazz more than thirty (30) days prior to cancellation or
expiration of the policy(ies), and shall provide adequate protection for Jazz
and their respective officers, employees, and agents against any and all
claims, demands, causes of action or damages, including attorney’s fees,
arising out of the manufacture and use of the Wafers and ASMC obligations in
this Agreement, regardless of when such claims are made or when underlying
injuries occur or manifest themselves. Insurance policies shall not contain
cross-claim, cross-suit, or other such exclusion clauses that would preclude
additional insured parties from instituting causes of action against other
insureds under the policy or which would otherwise limit coverage of additional
insureds.

 

16.2         Prior
to the date on which ASMC begins manufacturing the Wafers, certificates issued
by ASMC’s insurance company evidencing the insurance required herein shall be
provided to Jazz. Such certificates shall set forth, minimally, the amount of
insurance, the additional insured endorsement, the policy number, the date of
expiration, and an endorsement that Jazz shall receive thirty (30) days written
notice prior to termination, or reduction in coverage. The certificates shall
bear an inked or stamped signature. Facsimile or photocopied certificates are
not acceptable. Certificates shall be furnished to Jazz upon renewal of
insurance.

 

16.3         In
the event ASMC’s insurance providing the coverage required under this Section
is canceled and replacement insurance is not obtained prior to the effective
date of such cancellation or if ASMC fails to procure the insurance required
herein, Jazz shall have the right to procure such coverage and charge the
expenses incurred to ASMC.

 

ARTICLE 17

 

SETTLEMENT OF DISPUTES
AND APPLICABLE LAW

 

17.1         All
disputes between Jazz and ASMC, including without limitation any disputes
arising out of the execution, interpretation and performance of this Agreement
(including the validity, scope and enforceability of this arbitration
provision) or any provision of any instrument, document, agreement,
certification or other writing delivered hereunder or in connection herewith
shall be solely and finally settled by a board of arbitrators consisting of
three arbitrators conducted in accordance with the Rules of Conciliation and
Arbitration of the International Chamber of Commerce in effect at the time of
arbitration (the “ICC
Rules”). The board of arbitrators shall be chosen by each party
selecting one arbitrator and a third arbitrator being appointed in accordance 

 

14

 

with the ICC Rules. The
arbitration proceedings shall be held in Orange County, California, United
States of America. Any arbitration proceeding, including all documents and
communications in connection therewith, shall be in the English language. Any
translation of such documents or communications shall be for convenience
purposes only and the parties agree that the English language version of any
such document, communication or proceeding shall govern and control for all
purposes. To the extent that the ICC Rules conflict with any provision set
forth in this Section 17.1, the provisions of this section 17.1 shall prevail. If any party determines to submit a dispute
for arbitration pursuant to this Section 17.1, such party shall furnish the
other party to the dispute with a dated, written statement indicating (i) such
party’s intent to commence arbitration proceedings, (ii) the nature, with
reasonable detail, of the dispute and (iii) the remedy or remedies such party
will seek. The awards and findings of the arbitrators shall be conclusive and
binding upon the parties (or their successors) and judgment upon such award may
be entered in any court of competent jurisdiction. Any party against whom an
arbitrator’s award shall be issued shall not, in any manner, oppose or defend
against any suit to confirm such award, or any enforcement proceedings brought
against such party, whether within or outside the United States of America or
the Peoples Republic of China, with respect to any judgment entered upon the
award, and such party hereby consents to the entry of a judgment against such
party, in the full amount thereof, or other relief granted therein, in any
jurisdiction in which enforcement is sought. The fees of the arbitrators shall
be borne by the party against whom the arbitration award is issued. All other
expenses of the arbitration shall be shared equally by the parties.

 

17.2         All deadlines in this Article may be
extended by mutual agreement.

 

17.3         This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of California, United States of America, without regard for
its choice and or conflict of laws provisions and without regard to the United
Nations Convention on Contracts for the International Sale of Goods and is
subject to all other applicable governmental laws and regulations, including
but not limited to applicable regulations and requirements of any United States
regulatory agency concerning the import of Wafers into the United States of
America and the export of Jazz Technology from the United States of America. This Agreement has been made in the English
language and all documents and communications (including any arbitration or
mediation proceedings and any documents or communications delivered in
connection therewith) between the parties hereto shall be in the English
language. Any translations of this Agreement or any documents relating to this
Agreement shall be for convenience purposes only and the parties hereto agree
that the English language version of this Agreement and the documents relating
hereto shall govern and control for all purposes.

 

ARTICLE
18

 

FORCE
MAJEURE

 

18.1         Neither
Jazz nor ASMC shall be liable in damages for failure to deliver or for delay in
delivery or performance arising out of causes beyond its reasonable control
including, but not limited to, acts of God or of the public enemy, fires,
floods, earthquakes, outages of electrical power, epidemics, quarantine
restrictions, strikes, labor disputes, or freight embargoes (a “Force Majeure Event”).
The party suffering a Force Majeure Event shall promptly notify the other party
of such Force Majeure Event. A party shall be excused from its performance to
the extent caused by such Force 

 

15

 

Majeure Event; provided
that such party (i) gives notice of the Force Majeure Event to the other party
promptly after its occurrence, (ii) uses its reasonable efforts (including
executing any disaster plan) to overcome, mitigate and remove the cause of the
event preventing or delaying performance, (iii) continues the performance of
all its obligations under this Agreement that are not prevented or delayed and
(iv) upon cessation of the Force Majeure Event, promptly performs or completes
performance of the obligations which were prevented or delayed. In the event
ASMC’s inability to perform continues for sixty (60) days or more from
notification to Jazz of the Force Majeure Event, Jazz shall have the right to
terminate its obligations to ASMC with no further liability under this
Agreement upon prompt written notice.

 

ARTICLE
19

 

ACCOUNTING
AND RECORDS

 

19.1         ASMC
will keep complete, true and accurate books of account, records of production,
engineering documents, etc. for the purpose of showing its compliance with the
terms of this Agreement. Such books, records and documents will be kept at ASMC’s
principal place of business for at least five (5) years after the end of the
quarter to which they pertain, and will be open at all reasonable times for
inspection by a representative of Jazz. The representative will be obliged to
treat as confidential all relevant matters. Such inspections shall be at the
expense of Jazz, unless a variation or error exceeding U.S. $1,000 is
discovered in the course of any such inspection, whereupon ASMC shall pay all
costs relating thereto. ASMC will promptly pay to Jazz the full amount of any
underpayment, together with interest thereon at the maximum rate of interest
allowed by law.

 

ARTICLE 20

 

COMPLIANCE WITH
LAWS

 

20.1         In exercising its rights and meeting
its obligations under this license, ASMC shall fully comply with the
requirements of any and all applicable laws, regulations, rules and orders of
any domestic or foreign governmental body having jurisdiction over the exercise
of rights under this license. ASMC further agrees to indemnify and hold Jazz
harmless from and against any costs, expenses, attorney’s fees, citation, fine,
penalty and liability of any kind which might be imposed by reason of any
asserted or established violation of any such laws, order, rules or
regulations.

 

ARTICLE 21

 

MISCELLANEOUS

 

21.1         Each party hereto is contracting
independently with the other and there is no agency, employment or other
relationship except as may be expressly set forth herein. Neither party is
authorized nor has the power to obligate or bind the other party by contract,
agreement, warranty, representation or otherwise in any matter whatsoever.

 

21.2         The headings used in this Agreement
are inserted for convenience only and shall not affect the interpretation of
the respective provisions of this Agreement.

 

16

 

21.3         ASMC
shall not assign or subcontract its rights and obligations under this Agreement
without the prior written consent of Jazz.

 

21.4         The following persons shall act as
the representatives of the parties regarding notices, performance, extension,
dispute resolution, termination and changes in respect of this Agreement:

 

If to ASMC:

 

Mr. Tony Liu

President

Advanced
Semiconductor Manufacturing Corporation of Shanghai

385 Hong Cao Rd.

Shanghai, China

 

If to Jazz:

 

Mr. Theodore Zhu

Jazz/Semiconductor

4321 Jamboree Road

Newport Beach, CA
92660

 

with copies to:

 

Carolyn Follis,
Esq.

Jazz Semiconductor

4321 Jamboree Road

Newport Beach, CA 92660

 

and

 

Mark Kelly, Esq.

Alston & Bird

Bank of America Plaza

101 South Tryon Street, Suite 4000

Charlotte, NC 28280-4000

 

21.5         No failure or delay of either party
in exercising its rights hereunder (including but not limited to the right to
require performance of any provision of this Agreement) shall be deemed to be a
waiver of such rights unless expressly made in writing by the party waiving its
rights.

 

21.6         In the event that any provision of
this Agreement shall be held invalid or unenforceable as contrary to any law,
statute or regulation in that regard, the invalidity or unenforceability of
such provision shall in no way affect the validity of any other provision of
this Agreement, and each and every provision shall be severable from each and
every other.

 

21.7         Neither party shall make a press
release, advertisement, public statement or disclosure to any third party
concerning the existence of this Agreement or its contents without the express
written consent of the other party not to be unreasonably withheld or delayed.

 

17

 

21.8         Neither
party will be deemed the drafter of this Agreement (or its Exhibits), which
Agreement will be deemed to have been jointly prepared by the parties. If this
Agreement is ever construed, whether by a court or by an arbitrator, such court
or arbitrator will not construe this Agreement or any provision hereof against
any party as drafter.

 

21.9         This Agreement embodies the entire
agreement between the parties hereto and supersedes all other prior agreements
between the parties in connection with the sale of goods described herein. This
Agreement cannot be modified or supplemented except in writing and signed by
both parties. Neither party shall be bound by or liable to the other for any
representation, promise, or inducement, whether prior to or concurrent with,
made by any agent or person in the other’s employ, not embodied in this
Agreement.

 

21.10       Time is of the essence of this
Agreement, as are the provisions relating to ownership, warranties,
confidential information and payments.

 

21.11       This Agreement may be executed in
counterparts, which together shall constitute one and the same Agreement.

 

21.12       Each party to this Agreement, upon
the request of the other party, agrees to perform all further acts and execute,
acknowledge, and deliver any documents that may be reasonably necessary,
appropriate, or desirable to carry out the provisions of this Agreement.

 

21.13       Upon
the request of ASMC or Jazz, this Agreement shall be registered with the
appropriate governmental authorities in the People’s Republic of China.

 

[SIGNATURES
FOLLOW ON NEXT PAGE]

 

18

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed
by their duly authorized representatives.

 

 

	
   

  	
  ADVANCE
  SEMICONDUCTOR MANUFACTURING CORP. OF SHANGHAI

  
	
   

  	
   

  
	
  [CORPORATE
  SEAL]

  	
   

  
	
   

  	
  By:

  	
  \s\ SUN ZHEN

  
	
   

  	
  Name:  Sun Zhen

  
	
   

  	
  Title:    Sales & Marketing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEWPORT
  FAB, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  \s\ PAUL KEMPF

  
	
   

  	
  Name:  Paul Kempf

  
	
   

  	
  Title:    CTO

  

 

19

 

EXHIBIT
A

 

Jazz
Technology

 

	
  Process

  Name

  	
   

  	
  Description

  
	
  C05LA

  	
   

  	
  0.5 um Analog

  
	
  CL35Q

  	
   

  	
  0.35um Digital

  
	
  CA25QW

  	
   

  	
  0.25um Analog

  
	
  CR25QW3

  	
   

  	
  0.25um RF

  
	
  CA25QL

  	
   

  	
  0.25um [...***...]

  
	
  BC35M

  	
   

  	
  0.35um

  
	
  BC35Q

  	
   

  	
  0.35um

  
	
  SBC35M

  	
   

  	
  SiGe60-

  
	
  SBC35Q

  	
   

  	
  SiGe60-

  
	
  SBC35QT

  	
   

  	
  SiGe60-QT [...***...]

  
	
  SBC18M

  	
   

  	
  SiGe90-

  
	
  SBC18QT

  	
   

  	
  SiGe90-QTD [...***...]

  
	
  SBC18

  	
   

  	
  SiGe90-P (0.18um

  

 

20

 

EXHIBIT
B

 

Wafers
and Wafer Pricing

 

	
  Wafers to be Manufactured by ASMC

  	
   

  	
  Price Not
  to Exceed

  
	
  C05LA 0.5um Analog CMOS;

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  CL35Q 0.35um Digital CMOS;

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  CL25Q 0.25um Digital CMOS;

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  CA25QW3 0.25um Analog CMOS;

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  CR25QW34 0.25um RF CMOS;

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  CA25QLD 0.25 um [...***...]

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  BC35M 0.35 um BiCMOS

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  BC35Q 0.35 um BiCMOS

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  Specialty60-M

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  Specialty60-Q

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  Specialty60-QT [...***...]

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  Specialty90-M

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  Specialty90-QTD [...***...]

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  
	
  Specialty90-P

  	
   

  	
   

  	
  $

  	
  [...***...] USD

  	
   

  

 

The
prices set forth above for Wafers shall decrease [...***...] on April 1, 2004 and
ASMC shall make commercially reasonable efforts to decrease the prices set
forth above by [...***...] on each anniversary thereafter.

 

21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]