Document:

exv10w15

 

Exhibit 10.15

Herbert Smith

8 OCTOBER 2007

 

AGREEMENT

for the sale and purchase of certain assets of

ATMEL NORTH TYNESIDE LIMITED

 

by and among

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED,

ATMEL NORTH TYNESIDE LIMITED,

and

ATMEL CORPORATION

 1

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Clause	 	Headings	 	Page
	1.

	 	DEFINITIONS
	 	 	1	 
	2.

	 	INTERPRETATION
	 	 	5	 
	3.

	 	CONDITION
	 	 	6	 
	4.

	 	SALE AND PURCHASE
	 	 	6	 
	5.

	 	CONSIDERATION
	 	 	7	 
	6.

	 	ESCROW RELEASE
	 	 	9	 
	7.

	 	PRE-SIGNING DELIVERIES
	 	 	9	 
	8.

	 	POST-SIGNING COVENANTS
	 	 	10	 
	9.

	 	EMPLOYEES
	 	 	13	 
	10.

	 	HEALTH AND SAFETY
	 	 	13	 
	11.

	 	GUARANTEE
	 	 	14	 
	12.

	 	VAT
	 	 	14	 
	13.

	 	WARRANTIES BY THE SELLER
	 	 	17	 
	14.

	 	WARRANTIES BY THE PURCHASER
	 	 	17	 
	15.

	 	WARRANTIES BY THE GUARANTOR
	 	 	17	 
	16.

	 	LIMITATION OF LIABILITY
	 	 	17	 
	17.

	 	REMEDIES
	 	 	20	 
	18.

	 	THIRD PARTY CLAIMS
	 	 	20	 
	19.

	 	ANNOUNCEMENTS
	 	 	21	 
	20.

	 	CONFIDENTIALITY
	 	 	21	 
	21.

	 	OTHER PROVISIONS
	 	 	22	 
	22.

	 	NOTICES
	 	 	24	 
	23.

	 	LAW AND JURISDICTION
	 	 	25	 
	SCHEDULE 1 - WARRANTIES BY THE SELLER	 	 	27	 
	SCHEDULE 2 - WARRANTIES BY THE PURCHASER	 	 	28	 
	SCHEDULE 3 - WARRANTIES BY THE GUARANTOR	 	 	29	 
	SCHEDULE 4 - TOOLS	 	 	30	 

 

 

	 	 	 	 	 	 	 
	Clause	 	  Headings	 	Page
	SCHEDULE 5 - SPARE PARTS	 	 	31	 
	SCHEDULE 6 - RETAINED EQUIPMENT	 	 	32	 
	SCHEDULE 7 - TOOL DELIVERY PROGRAMME	 	 	33	 
	SCHEDULE 8 -  PRE-SIGNING DELIVERIES	 	 	36	 
	SCHEDULE 9 - VAT EVIDENCE	 	 	37	 
	SCHEDULE 10 - AGREED FORM DOCUMENTS	 	 	38	 
	SCHEDULE 11 - SELLER’S BANK ACCOUNT	 	 	39	 
	SCHEDULE 12 - PURCHASER’S BANK ACCOUNT	 	 	40	 

 

 

AGREEMENT FOR SALE AND PURCHASE OF CERTAIN ASSETS

DATE 8 OCTOBER 2007

PARTIES

	(1)	 	TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
(incorporated in Taiwan, Republic of China) the registered office/principal place of
business of which is at 8 Li-Hsin 6 Road, Hsinchu Science Park, Hsinchu, Taiwan ROC 300-77
(the “Purchaser”)
	 
	(2)	 	ATMEL NORTH TYNESIDE LIMITED (incorporated and registered in England and Wales under company
number 04018730 the registered office of which is at Lacon House, Theobald’s Road, London WC1X
8RW (the “Seller”); and
	 
	(3)	 	ATMEL CORPORATION (incorporated in the State of Delaware) the principal place of business of
which is at 2325 Orchard Parkway, San Jose, California 95131, USA (the “Guarantor”).

IT IS AGREED AS FOLLOWS:

	1.	 	DEFINITIONS
	 
	 	 	In this Agreement, the following definitions apply:
	 
	 	 	“Accepted Non-Compliant Tool” means any Tool which is a Failed Tool but which the
Purchaser has accepted pursuant to Schedule 7 on the basis of the Reduced Tool Price and
which has become a Purchaser’s Tool upon such acceptance;
	 
	 	 	“Accepted Repaired Tool” means any Tool which is a Failed Tool that is a Critical Tool but
which the Purchaser has accepted pursuant to paragraph 10(c) of Schedule 7;
	 
	 	 	“Accepted Tool” means a Tool which has met or exceeded the Equipment Condition Baseline in
the Equipment Acceptance Test in accordance with Schedule 7;
	 
	 	 	“Accessories” means the ancillary systems related to the Tools as delivered by the
original equipment manufacturer for such Tools and that are in Seller’s possession; for
each Tool, “Accessories” include at least one complete pump set and may also include,
without limitation, generators, chillers, heaters, gas cabinets, local scrubbers, pumping
lines, O3 generators and O3 destructors;
	 
	 	 	“Agreed Form” means in a form agreed by and signed by or on behalf of the applicable Party
or Parties;
	 
	 	 	“Agreed Level” shall have the meaning attributed to it in Schedule 7;
	 
	 	 	“Appointed ECB Tester” means an appropriately qualified employee of the Seller or the
Guarantor;
	 
	 	 	“Appointed ECB Witness” means an appropriately qualified employee of the Purchaser;
	 
	 	 	“Assets” means the Tools, Accessories, Manuals and Spare Parts;

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	 	 	“Business Day” means a day other than Saturday, Sunday or a day on which banks are authorised to
close in London;
	 
	 	 	“Claim” means a claim by the Purchaser against the Seller or the Guarantor under any provision of
this Agreement, for breach of any of the Warranties or breach of any other provision of this
Agreement, or under, or for a breach of, any provision of any of the Related Agreements, or a
claim by the Seller or the Guarantor against Purchaser under, or for a breach of, any provision of
this Agreement, or under, or for a breach of, any provision of any of the Related Agreements (as
the context may require);
	 
	 	 	“Completion” means the time at which (i) the Condition is satisfied pursuant to Clause 3 and (ii)
the Transaction is then consummated;
	 
	 	 	“Condition” shall have the meaning attributed to it in Clause 3;
	 
	 	 	“Consumables” means all consumables relating to the Tools, including but not limited to
quartzware, targets, gases, chemicals and other supplies;
	 
	 	 	“Consumed Spare Parts” means any Spare Parts are consumed and used by the Seller between the date
of this Agreement and the Production End Date;
	 
	 	 	“Critical Tool” means any Tool identified as a Critical Tool in the Tool List;
	 
	 	 	“ECB Plan” shall have the meaning attributed to it in Schedule 7;
	 
	 	 	“Effective Date” means the date on which this Agreement becomes unconditional following the
satisfaction of the Condition;
	 
	 	 	“Employees” means the persons employed by the Seller immediately prior to the date hereof and any
further persons employed by the Seller immediately before the Tri-Partite Agreement becomes
unconditional under the terms therein;
	 
	 	 	“Equipment Acceptance Test” shall have the meaning set forth in Schedule 7;
	 
	 	 	“Equipment Condition Baseline” means the objectively measurable condition of each Tool as referred
to in Schedule 7;
	 
	 	 	“Escrow Account” means the interest bearing deposit account details of which are set forth in the
Escrow Agreement in the name of JP Morgan Chase whereby the Seller and the Purchaser which account
shall be established and regulated in accordance with the Escrow Agreement;
	 
	 	 	“Escrow Agent” means JP Morgan Chase as appointed pursuant to the Escrow Agreement;
	 
	 	 	“Escrow Agreement” means the joint escrow account agreement in Agreed Form relating to the Escrow
Account to be entered into and effective on or around the date hereof;
	 
	 	 	“Escrow Interest” shall have the meaning
attributed to it in Clause 5.2;
	 
	 	 	“Escrow Release
Amount” shall have the meaning attributed to it in Clause 6.2;
	 
	 	 	“Fab” means the facility for the production and manufacture of semiconductor and related products
located at the Premises;

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	 	 	“Failed Tool” is a Tool which fails to meet the Equipment Condition Baseline in an Equipment
Acceptance Test carried out pursuant to Schedule 7;
	 
	 	 	“Final Escrow Release Date” means the date on which the final payments are made from the Escrow
Account pursuant to the Escrow Agreement;
	 
	 	 	“Final Spare Parts Inventory” shall have the meaning attributed to it in Clause 5.5;
	 
	 	 	“Governmental Entity” means any supranational, national, international, state, municipal, local or
foreign government, any instrumentality, subdivision, court, administrative agency or commission
or other governmental authority or instrumentality;
	 
	 	 	“Guarantor’s Warranties” means the warranties made by the Guarantor in this Agreement.
	 
	 	 	“Initial Spare Parts Inventory” shall have the meaning attributed to it in Clause 5.5;
	 
	 	 	“Joint Escrow Instructions” shall be any joint instructions of the Purchaser and the Seller to the
Escrow Agent for release and payment of any amount to the Seller or the Purchaser from the Escrow
Account in the form set forth in Schedule 2 to the Escrow Agreement;
	 
	 	 	“Last Spare Parts Transfer Date” shall have the meaning set forth in Clause 5.5;
	 
	 	 	“Law” means any law, statute, order, code, ordinance, regulation, rule, policy, guidance,
interpretation of the law or administrative practice of any Governmental Entity;
	 
	 	 	“Liens” means any mortgage, pledge, lien, encumbrance, hypothecation, security interest or other
security agreement or security arrangement;
	 
	 	 	“Long Stop Date” means 31 May 2008;
	 
	 	 	“Losses” means claims, losses, damages, liabilities and reasonable costs and expenses;
	 
	 	 	“Manuals” means any and all documents, references, and guides in the Seller’s possession that
explain or describe (the operation or maintenance of the Tools;
	 
	 	 	“Non Specific Spare Part” shall have the meaning set forth in Clause 5.4.2;
	 
	 	 	“Non Specific Spare Part Price” shall have the meaning set forth in Clause 5.4.2;
	 
	 	 	“OEM” means the original equipment manufacturer of any relevant Tool;
	 
	 	 	“Overrun” means that the Purchaser’s Tools remain on the Premises after the Tool Removal Completion
Date;
	 
	 	 	“Parties” means, collectively, the Seller, the Purchaser and the Guarantor;
	 
	 	 	“Party” means, individually, the Seller, the Purchaser or the Guarantor, as the case may be;
	 
	 	 	“Payment Date” means the last Business Day of the month following the first Transfer Date and each
last Business Day of each month thereafter until the Final Escrow Release Date.

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	 	 	“Premises” means leasehold property known as Land at Middle Engine Lane, Hadrian Business Park,
Silverlink, Wallsend, Newcastle Upon Tyne, NE28 9NZ registered at the Land Registry under title
numbers TY319516 and TY319520, including all buildings and erections thereon, but excluding the
plot of land located near the parking area to the office building which is subject to the contract
dated 15 November 2006 among (i) the Seller, (ii) Sandalbeech Limited and (iii) Honda Motor Europe
Limited;
	 
	 	 	“Production End Date” means 31 December 2007 (or such other date as may be agreed between the
Purchaser and the Seller in writing);
	 
	 	 	“Purchase Price” shall have the meaning attributed to it in Clause 4.1;
	 
	 	 	“Purchaser’s Bank Account” means the bank account with the details set forth in Schedule 12
attached hereto.
	 
	 	 	“Purchaser’s Solicitors” means Simmons & Simmons of CityPoint, One Ropemaker Street, London
EC2Y 9SS;
	 
	 	 	“Purchaser’s Tools” means any Tool risk in and title to which has been transferred to the
Purchaser on the relevant Transfer Date;
	 
	 	 	“Purchaser’s Warranties” means the warranties made by the Purchaser in this Agreement.
	 
	 	 	“Reduced Critical Tool Price” shall have the meaning attributed to it in Schedule 7;
	 
	 	 	“Reduced Tool Price” shall have the meaning attributed to it in Schedule 7;
	 
	 	 	“Rejected Tool” means any Tool that the risk in or title to such Tool remains with the Seller and
does not pass to the Purchaser pursuant to this Agreement;
	 
	 	 	“Related Agreements” means the Tri-Partite Agreement and the Escrow Agreement;
	 
	 	 	“Retained Equipment” means all items of machinery, tools and any other assets set forth in the
list in Schedule 6 together with all other equipment and assets of whatever nature found on the
Premises as of the date hereof but excluding any Tools, Spare Parts, Accessories and Manuals;
	 
	 	 	“Sellers’ Solicitors” means Herbert
Smith of Exchange House, Primrose Street, London EC2A 2HS;
	 
	 	 	“Seller’s Bank Account” means the bank account with the details set forth in Schedule 11 attached
hereto;
	 
	 	 	“Seller’s Warranties” means the warranties made by the Seller in this Agreement;
	 
	 	 	“Spare Parts” means the stock of spare parts for the Tools set forth in Schedule 5, which schedule
shall be audited, amended and updated pursuant to the terms set forth in Clause 5.5;
	 
	 	 	“Spare Parts Transfer Date” shall have the meaning set forth in Clause 4.5;
	 
	 	 	“Third Party
Claim” shall have the meaning attributed to it in Clause 18;
	 
	 	 	“Threshold Cost” shall have the meaning attributed to it in Schedule 7;

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	 	 	“Tool List” means the list of Tools set forth in Schedule 4;
	 
	 	 	“Tool Price” means the part of the Purchase Price apportioned to each Tool and all of its
related Spare Parts, Accessories and Manuals, as set forth opposite that Tool in Schedule
4;
	 
	 	 	“Tool Removal Completion Date” means 30 April 2008 (or such other date as may he agreed
between the Purchaser and the Seller in writing);
	 
	 	 	“Tool Removal Start Date” means a date after the date of this Agreement that is no later
than 1 January 2008 (or such other date as may be agreed between the Purchaser and the
Seller in writing);
	 
	 	 	“Tools” means the equipment and tools of the Seller which are listed in Schedule 4 (and
which definition shall not include Purchaser’s Tools);
	 
	 	 	“Total Consumed Spare Parts” shall have the meaning attributed to it in Clause 5.6;
	 
	 	 	“Total Consumed Spare Parts Value” shall have the meaning attributed to it in Clause 5.6;
	 
	 	 	“Transaction” means the transaction or series of transactions contemplated in this
Agreement and the Tri-Partite Agreement;
	 
	 	 	“Transfer Date” for any Tool means the date on which risk in and title to such Tool is
passed to the Purchaser as set forth in Schedule 7;
	 
	 	 	“Transfer Regulations” means The Transfer of Undertakings (Protection of Employment)
Regulations 2006;
	 
	 	 	“Tri-Partite Agreement” means the agreement of even date herewith by and among the
Purchaser, the Seller, the Guarantor, Highbridge Business Park Limited and Highbridge
Properties Plc;
	 
	 	 	“VAT” means United Kingdom value added tax; and
	 
	 	 	“VATA” means the Value Added Tax Act 1994.
	 
	2.	 	INTERPRETATION
	 
	2.1	 	In this Agreement:

	 	2.1.1	 	the contents page(s) and clause headings are for convenience only and do not
affect its construction;
	 
	 	2.1.2	 	words denoting the singular include the plural and the other way round;
	 
	 	2.1.3	 	words denoting one gender include each gender and all genders;
	 
	 	2.1.4	 	general words shall not be given a restrictive meaning by reason of their
being preceded or followed by words indicating a particular class or examples of acts,
matters or things; and
	 
	 	2.1.5	 	references to time and dates shall be references to the local time and the
date in London, United Kingdom.

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	2.2	 	In this Agreement, unless otherwise specified or the context otherwise requires, a
reference to:

	 	2.2.1	 	any reference to this Agreement includes the schedules, exhibits and other
attachments to it each of which forms part of this Agreement for all purposes;
	 
	 	2.2.2	 	a person is to be construed to include a reference to any individual, firm,
partnership, company, corporation, association, organisation or trust (in each case
whether or not having a separate legal personality);
	 
	 	2.2.3	 	a document, instrument or agreement (including, without limitation,
this Agreement) is a reference to any such document, instrument or agreement as
modified, amended, varied, supplemented or novated from time to time;
	 
	 	2.2.4	 	a clause or schedule (whether or not capitalised) is a reference to a clause
of or schedule to this Agreement and a reference to this Agreement includes its
schedules, exhibits and all other attachments hereto;
	 
	 	2.2.5	 	a paragraph is a reference to a paragraph of the schedule in which the
reference appears;
	 
	 	2.2.6	 	any phrase introduced by the term “include”, “including”, “in particular” or
any similar expression will be construed as illustrative and will not limit the
sense of the words preceding or following that term;
	 
	 	2.2.7	 	a provision of any statute, statutory provision, European Community directive
or other legislation is to be construed as a reference to such provision as amended or
re-enacted or as its application is modified from time to time (whether before or after
the date of this Agreement) and shall include a reference to any provision of which it
is a re-enactment (whether with or without modification) and to any orders, regulations,
instruments or other subordinate legislation (and relevant codes of practice) made
under the relevant statute or other legislation except to the extent that any amendment
or re-enactment coming into force after the date of this Agreement would increase or
extend the liability of any Party to any other person under this Agreement; and
	 
	 	2.2.8	 	writing shall include any mode of reproducing words in a legible and permanent
form.

	3.	 	CONDITION
	 
	 	 	The sale and purchase of the Assets under this Agreement and the consummation of the
Transaction are conditional on the Tri-Partite Agreement becoming unconditional subject to
the condition therein being satisfied (the
“Condition”).

	4.	 	SALE AND PURCHASE
	 
	4.1	 	The Seller shall sell and transfer and the Purchaser shall purchase, free from Liens the
legal and beneficial title to the Assets for an aggregate consideration of US$82,000,000
(eighty two million US dollars) (the “Purchase Price”) on the terms and subject to the
conditions set forth in this Agreement.

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	4.2	 	Risk in and title to the Tools shall pass to the Purchaser at the Premises on the
relevant Transfer Date, each such Transfer Date to take place in accordance with the
procedure set forth in Schedule 7.
	 
	4.3	 	Risk in and title to the Accessories and Manuals relating to any Tool shall pass to the
Purchaser at the Premises simultaneously with the transfer of risk in and title to the
relevant Tool.
	 
	4.4	 	Risk in and title to the Spare Parts which relate and are specific to any Tool (as identified
pursuant to Clause 4.2 and the audit of Spare Parts set forth in Clause 5.5) shall pass to the
Purchaser at the Premises simultaneously with the transfer of risk in and title to the
relevant Tool.
	 
	4.5	 	Risk in and title to the Non Specific Spare Parts shall pass to the Purchaser at the Premises
at the time of the removal of such Spare Parts by the Purchaser following the Production End
Date (the “Spare Parts Transfer Date”).
	 
	4.6	 	For the avoidance of doubt the sale and purchase of the Assets and the Transaction shall not
include the Retained Equipment and no title to such Retained Equipment shall pass as a result
of the Transaction or this Agreement, the Tri-Partite Agreement, the Escrow Agreement or any
other document referred thereto.
	 
	5.	 	CONSIDERATION
	 
	5.1	 	Subject to adjustment in accordance with the other provisions of this Clause 5, the
consideration for the sale and purchase of the Assets as contemplated herein shall be the
Purchase Price (apportioned as set forth in Schedule 4) which shall be paid in cash as set
forth in this Clause 5.
	 
	5.2	 	Within seven days of the date hereof the Purchaser shall pay by wire transfer in immediately
available funds the full amount of the Purchase Price into the Escrow Account. Interest on the
monies standing to the credit from time to time of the Escrow Account (“Escrow Interest”)
shall accrue for the benefit of the Purchaser, but the Purchaser agrees that such Escrow
Interest shall be paid or disbursed in accordance with the provisions in the Escrow Agreement.
	 
	5.3	 	The fees of the Escrow Agent being US$3,000 shall be borne equally by the Seller and the
Purchaser.
	 
	5.4	 	Within 45 days following the date hereof the Purchaser and the Seller shall verify and agree
the allocation of the Purchase Price as set out in Schedule 4 as follows:

	 	5.4.1	 	a Tool Price shall be determined for each Tool and all related Accessories,
Manuals and Spare Parts;
	 
	 	5.4.2	 	a price (a “Non Specific Spare Part Price”) shall be determined for and
allocated to each Spare Part which is not specific to any Tool (a “Non Specific Spare
Part”);
	 
	 	5.4.3	 	the Tool Price for any Tool, and all related Accessories, Manuals and Spare
Parts may be nil. The Non Specific Spare Part Price for any Non Specific Spare Part
shall be nil;

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	 	5.4.4	 	the aggregate of all Tool Prices and Non Specific Spare Part Prices shall
not exceed the Purchase Price.

	5.5	 	Within 45 days of the date of this Agreement, in order to identify the Spare Parts to be
transferred to the Purchaser, the Seller shall perform an audit of its inventory of the Spare
Parts and amend, update or make any corrections to Schedule 5 as necessary and appropriate
(the “Initial Spare Parts Inventory”) and shall submit such Initial Spare Parts Inventory to
the Purchaser for review. Such Initial Spare Parts Inventory shall
inter alia determine all
Non Specific Spare Parts and all Non Specific Spare Parts Prices. The Seller shall review and
maintain its record of inventory of Spare Parts on each Transfer Date or Spare Parts Transfer
Date and update Schedule 5 as necessary and appropriate, to take into account all spare parts
(including Non Specific Spare Parts) as have been transferred to the Purchaser on any Transfer
Date or Spare Parts Transfer Date and any Consumed Spare Parts. On the “Last Spare Parts
Transfer Date” (being the date on which risk in and title to the last remaining Spare Parts on
the Initial Spare Parts Inventory shall pass to the Purchaser and which shall be the later of
the last Transfer Date or the last Spare Parts Transfer Date) the Seller shall perform a final
audit of its inventory of Spare Parts and produce a final version of Schedule 5 containing the
inventory of Spare Parts as of such Last Spare Parts Transfer Date, which shall specify all
the Spare Parts (including all Non Specific Spare Parts) which were transferred to the
Purchaser and all Consumed Spare Parts (the “Final Spare Parts Inventory”) and shall submit
such Final Spare Parts Inventory to the Purchaser for review.
	 
	5.6	 	At the time of the Final Spare Parts Inventory, the Seller and the Purchaser shall determine
(i)  the aggregate number of Consumed Spare Parts by reference to all of the revised and
updated
versions of Schedule 5 and the difference (if any) between the Initial Spare Parts
Inventory and the Final Spare Parts Inventory (the “Total Consumed Spare Parts”), and (ii)
the aggregate value for the Total Consumed Spare Parts (the “Total Consumed Spare Parts
Value”), which shall be an amount calculated by multiplying (a) the number of Total
Consumed Spare Parts by (b) the market value for each unit of Consumed Spare Parts as
determined by the Seller.
	 
	5.7	 	The Seller shall, at the discretion of the Purchaser, either (a) pay an amount to the
Purchaser equal to the Total Consumed Spare Parts Value (which shall for these purposes
include instructing the Escrow Agent to release from and pay out of the Escrow Account monies
to the Purchaser) or (b) provide the Purchaser with spare parts identical in all material
respects to the Consumed Spare Parts, in either case in accordance with such mechanics as the
Parties shall agree between them acting reasonably.
	 
	5.8	 	If any Accepted Non-Compliant Tools become Purchaser’s Tools the aggregate Purchase Price and
the relevant Tool Price shall be deemed to be reduced by the difference between the relevant
Tool Price and the Reduced Tool Price paid by the Purchaser.
	 
	5.9	 	On the relevant Transfer Date relating to any Tool, the Tool Price for such Tool and all
related Accessories, Manuals and Spare Parts shall be finally agreed by the Parties as the
Tool Price determined pursuant to this Clause 5.
	 
	5.10	 	The Parties agree and acknowledge that no Tool Price may be changed, amended or redetermined
following such Transfer Date, and such Tool Price shall be final and binding on the Parties
for all purposes.
	 
	5.11	 	The aggregate Purchase Price shall be reduced by the aggregate of the Tool Prices relating to
each Rejected Tool.

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	6.	 	ESCROW RELEASE
	 
	6.1	 	The Purchaser and the Seller shall use all reasonable endeavours to procure that the relevant
part of the Purchase Price due to the Seller on each Payment Date is released from, and paid
out of, the Escrow Account to the Seller in the manner set forth below.
	 
	6.2	 	Four Business Days prior to any Payment Date, the Seller shall inform the Purchaser of the
amount of the Purchase Price due to the Seller on the relevant Payment Date (the “Escrow
Release Amount”), such amount having been calculated by taking into account the following:

	 	6.2.1	 	all Tools (including Accepted Non-Compliant Tools) which have become
Purchaser’s Tools, plus
	 
	 	6.2.2	 	all Spare Parts, Accessories and Manuals that relate to such Tools,
	 
	 	6.2.3	 	all Non Specific Spare Parts which have been transferred to the Purchaser; and
	 
	 	6.2.4	 	the relevant Tool Price and Non Specific Spare Part Price attributable toe
ach of the foregoing as calculated or determined in accordance with Clause 5;

	 	 	in the period commencing on the date falling four Business Days prior to the previous
Payment Date, or, only in the case of the first Payment Date, the Tool Removal Start Date,
and ending on the date falling four Business Days prior to the relevant Payment Date (both
dates inclusive).
	 
	6.3	 	Within four Business Days after the Tool Removal Completion Date, or in the event of an
Overrun within four Business Days after the Long Stop Date, the Seller shall inform the
Purchaser of the amount of the Total Consumed Spare Parts to be deducted from any Escrow
Release Amount, such amount having been calculated pursuant to Clause 5.5.

	6.4	 	Except in the event of manifest error the Purchaser shall agree to the Escrow Release Amount.
	 
	6.5	 	One Business Day prior to the relevant Payment Date each of the Seller and the Purchaser
shall serve a counterpart of a Joint Escrow Instructions to the Escrow Agent in the Agreed
Form containing the instruction to release from, and to pay out of, the Escrow Account to the
Seller the Escrow Release Amount on the relevant Payment Date by electronic wire transfer of
funds for same day value.
	 
	6.6	 	Subject to all amounts due to the Seller (including but not limited to any part of the
Purchase Price) under this Agreement having been paid in full and credited to the Seller’s
designated account, within 30 days after the Long Stop Date, the Purchaser shall be entitled
to unilaterally instruct the Escrow Agent to release from, and pay out of, the Escrow Account
to the Purchaser, the entire amount standing to the credit of the Escrow Account as at that
date together with the Escrow Interest.
	 
	7.	 	PRE-SIGNING DELIVERIES
	 
	 	 	The Parties acknowledge respective receipt (on or prior to the date hereof) of each of the
deliveries listed in Schedule 8 to this Agreement.

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	8.	 	POST-SIGNING COVENANTS
	 
	8.1	 	Equipment Condition Baseline
	 
	 	 	For each Tool, the Equipment Condition Baseline shall be established and the ECB Plan shall
be jointly agreed upon, as set forth in Schedule 7.
	 
	8.2	 	Tool Shutdown and Removal

	 	8.2.1	 	The Seller and the Purchaser have agreed that the Tools shall be shutdown,
disconnected and line-capped by the Seller and then removed from the Premises by the
Purchaser in accordance with Schedule 7.
	 
	 	8.2.2	 	The Seller shall be responsible for the shutdown, disconnection and
line-capping of the Tools prior to the relevant Transfer Date, and all costs,
liabilities and expenses incurred in or related to such shutdown, disconnection and
line-capping of the Tools shall be borne by the Seller.
	 
	 	8.2.3	 	Subject to the Seller’s obligations set forth in Clause 10 below, the
Purchaser shall be responsible for removing and shall remove the Purchaser’s Tools,
Spare Parts (excluding the Consumed Spare Parts), Accessories and Manuals on or
following the relevant Transfer Date and all costs, liabilities and expenses incurred
in or related to removing the Purchaser’s Tools, Spare Parts (excluding the Consumed
Spare Parts), Accessories and Manuals, including but not limited to costs and expenses
of removing, packing, crating, exporting and shipping the Tools, shall be borne by the
Purchaser.
	 
	 	8.2.4	 	The Seller agrees to use all reasonable endeavours to procure that in
accordance with Schedule 7:

	 	(A)	 	the first Tool shall have been disconnected, line-capped
and made available for removal by the Purchaser by no later than 1 January
2008;
	 
	 	(B)	 	50 per cent (by number) of the Tools shall have been
disconnected, line-capped and made available for removal by the Purchaser by
no later than 1 February 2008; and
	 
	 	(C)	 	all of the Tools shall have been disconnected, line-capped
and made available for removal by the Purchaser by no later than 15 February
2008.

	 	8.2.5	 	Without prejudice to Clause 8.2.4, the Purchaser and the Seller shall
undertake to procure that, in accordance with Schedule 7, all of the Tools shall have
become Purchaser’s Tools or Rejected Tools, as the case may be, by the Tool Removal
Completion Date, or in the event of an Overrun by the Long Stop Date.
	 
	 	8.2.6	 	If any Tools remain in the Premises on the Tool Removal Completion Date, in
order to permit the Purchaser and the Seller to complete the steps set forth in
Schedule 7, during the Overrun Period, the Seller shall provide to the Purchaser
reasonable access to and space within the Fab, as well as office space for housing the
Purchaser’s employees and contractors.
	 
	 	8.2.7	 	In the event of an Overrun, the Seller and the Purchaser agree to apportion
the Overrun Fee (as defined below) between them on the following basis:

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	 	(A)	 	For the purposes of this Clause 8.2.7, the following terms have the meanings set forth
below:
	 
	 	 	 	“Extension Period” means any period of time following the Long Stop Date during which the
Purchaser and the Seller may continue to occupy the Premises for the purposes of, inter
alia, performing any works and activities (including removing the Tools from the
Premises) under the Tri-Partite Agreement;
	 
	 	 	 	“Overrun Fee” means the costs and expenses of renting the Premises and maintaining all
utilities at the Premises during the Overrun Period, which shall include, without
limitation, electricity, gas, water, foul water and surface drainage, heating,
ventilation and air-conditioning, smoke and fumes, signals, telecommunications (excluding
calls), satellite and data communications and all other utilities;
	 
	 	 	 	“Overrun Period” means the period commencing on the date immediately following the Tool
Removal Completion Date and ending at the close of business on the Long Stop Date or the
last day of the Extension Period if applicable, and includes, for the avoidance of doubt,
a Business Day and each day that is not a Business Day;
	 
	 	 	 	“Purchaser Overrun” means an Overrun caused by or resulting from the Purchaser’s delay in
removing or failure to remove all of the Purchaser’s Tools from the Premises by the Tool
Removal Completion Date;
	 
	 	 	 	“Purchaser Overrun Day” means, in the event of a Purchaser Overrun, each day or part of a
day following the Tool Removal Completion Date that the Purchaser has failed to remove
all of the Purchaser’s Tools in accordance with this Agreement;
	 
	 	 	 	“Purchaser Overrun Fee” means the amount calculated by multiplying (i) the Overrun Fee by
(ii) Purchaser’s Portion;
	 
	 	 	 	“Purchaser Overrun Reduced Fee” means the amount calculated by multiplying (i) the
Overrun Fee by (ii) Purchaser’s Reduced Portion;
	 
	 	 	 	“Purchaser’s Portion” means the ratio, (i) the numerator of which is the total number of
Purchaser Overrun Days, and (ii) the denominator of which is the total number of days
during the Overrun Period;
	 
	 	 	 	“Purchaser’s Reduced Portion” means the ratio, (i) the numerator of which is the amount
equal to the total number of Purchaser Overrun Days minus the total number of
Seller Overrun Days, and (ii) the denominator of which is the total number of days during
the Overrun Period; and
	 
	 	 	 	“Seller Overrun” means an Overrun caused by or resulting from the Seller’s delay in
satisfying or failure to satisfy the requirements set forth under Clause 8.2.4(A),
8.2.4(B) or 8.2.4(C) above (each, a “Milestone,” and each date referred to in a
Milestone, a “Milestone Date”); and
	 
	 	 	 	“Seller Overrun Day” means, in the event of a Seller Overrun, each day or part of a day
following a Milestone Date that the Seller has failed to meet the relevant Milestone;
provided, however, that when the Seller

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	 	 	 	meets the relevant Milestone, the day on which the Milestone is met and
each subsequent day thereafter before the next Milestone shall not be
considered to be a Seller Overrun Day.

	 	(B)	 	During the Overrun Period, the Seller shall be responsible
for paying the total amount of the Overrun Fee to the respective utility
service providers (or the landlord of the Premises as the case may be);
provided, that the Purchaser shall be responsible for and shall
reimburse and pay the Seller for any Purchaser Overrun Fee; provided,
further, that in the event that a Purchaser Overrun is caused by or
results from a Seller Overrun, the Purchaser shall be responsible for and
shall reimburse and pay the Seller for the Purchaser Overrun Reduced Fee.
If at any time the Purchaser Overrun Reduced Fee shall be a negative number
by reason of the number of Seller Overrun Days exceeding the Purchaser
Overrun Days, the Purchaser shall have no obligation to reimburse or pay the
Seller under this Clause 8.2.7(B).
	 
	 	(C)	 	As soon as practicable after the date of the last
Purchaser’s Tool to be removed from the Premises and in any event no later
than the Long Stop Date, or in the event of an Extension Period the last day
of occupancy of the Premises, the Purchaser Overrun Fee or the Purchaser
Overrun Reduced Fee, as the case may be, shall be payable to the Seller in
cash by wire transfer of immediately available funds to the Seller’s Bank
Account.

	8.3	 	Production End Date

	 	8.3.1	 	The Purchaser agrees and accepts that:

	 	(A)	 	in respect of any Assets the Seller may at its own cost
continue to use such Assets for its production and operations until the
earlier of the Production End Date or the Transfer Date relating to such
Assets and during such time the Seller shall use and maintain any Tools used
in a manner consistent with the Seller’s current practices as of the date
hereof; provided that, if and to the extent that the Seller intends
to use the Assets after the Production End Date, it shall notify the
Purchaser in advance;
	 
	 	(B)	 	subject to Seller’s obligations in Clauses 5 as regards
Consumed Spare Parts, the Seller may use and consume any and all Spare Parts
relating to any such Tools in connection with its production and operations;
and/or
	 
	 	(C)	 	the Seller may use and consume any and all Consumables in
connection with its production and operations and the Seller shall have no
obligation or liability to the Purchaser (i) to replace, provide or make
available any Consumables, or (ii) to reimburse or pay to the Purchaser in
connection with the Seller’s use and consumption of the Consumables.

	8.4	 	Effect of Transfer Date or Tool Removal Completion Date

	 	8.4.1	 	In respect of any Tools from the date of this Agreement until the earlier
of (i) the Tool Removal Completion Date (or in the event of an Overrun, the Long Stop
Date, or in the event of an Extension Period, the last day of the Extension Period)
and (ii) the Transfer Date relating to such Tools, the Seller undertakes to the
Purchaser that the Seller shall:

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	 	(A)	 	maintain the Tools in a manner consistent with the Seller’s current
practices as of the date hereof; and
	 
	 	(B)	 	not sell, transfer or otherwise dispose of, or agree to
sell, transfer or otherwise dispose of, or grant or agree to grant any option
in respect of any of the Tools (excluding any Rejected Tools) or any right or
interest in them (other than pursuant to this Agreement).

	8.5	 	Procurement of Spare Parts
	 
	 	 	If pursuant to Schedule 7 the Seller is required to procure any spare part or other items
for the repair, replace or refurbish and/or maintenance of any Failed Tool, the Purchaser
shall provide reasonable assistance and cooperation to the Seller to ensure that such part
is sourced and delivered as soon as reasonably possible and at a reasonable cost to the
Seller.
	 
	8.6	 	Insurance
	 
	 	 	For the period from:

	 	8.6.1	 	the date of this Agreement up to and including the Effective Date, the
Seller shall provide at its own cost the same level of insurance coverage as
maintained at the Premises and on the Tools as at the date of this Agreement; and
	 
	 	8.6.2	 	the Effective Date up to and including the Tool Removal Completion Date, or
in the event of an Overrun, up to and including the Long Stop Date, or in the event of
an Extension Period, up to and including the last day of the Extension Period, the
Seller shall provide at its own cost such commercially reasonable level of insurance
coverage for the Premises and the Tools as is reasonably satisfactory to the
Purchaser.

	9.	 	EMPLOYEES
	 
	 	 	It is acknowledged and agreed by each of the Parties that the Transfer Regulations will not
apply to the sale and purchase of the Tools under this Agreement and that accordingly no
Employees will transfer to the Purchaser as a result of this Agreement and the Transaction.
	 
	10.	 	HEALTH AND SAFETY
	 
	10.1	 	From the date of this Agreement until the Tool Removal Completion Date, or in the event of an
Overrun until the Long Stop Date, the Seller agrees to maintain the clean room in a manner
consistent with current practices as of the date hereof.
	 
	10.2	 	From the date of this Agreement until the Tool Removal Completion Date, or in the event of an
Overrun until the Long Stop Date, or in the event of an Extension Period, until the last day
of the Extension Period:

	 	10.2.1	 	in the event of any accident, damage or injury occurring at the Premises as a result
of shutdown or removal of the Tools as contemplated herein, the Seller shall implement
and follow its emergency response procedures existing as of the date of this
Agreement; and

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	 	10.2.2	 	the Purchaser shall be subject to and shall comply with all security,
access, environmental, health, safety and emergency response procedures of the
Seller existing as of the date of this Agreement.

	11.	 	GUARANTEE
	 
	11.1	 	In consideration of the Purchaser entering into this Agreement at the request of the
Guarantor, as the Guarantor hereby acknowledges, the Guarantor unconditionally and irrevocably
guarantees to the Purchaser the observance and performance by the Seller of the Seller’s
obligations to the Purchaser under this Agreement and agrees to pay any sum that become due
and payable (but remains unpaid by the Seller) which the Seller becomes liable to pay to the
Purchaser under this Agreement.
	 
	11.2	 	The obligations of the Guarantor under Clause 11.1 above shall not be impaired by:

	 	11.2.1	 	any extension of time, forbearance or concession by the Purchaser in taking steps to
enforce the terms of this Agreement;
	 
	 	11.2.2	 	any disclaimer of this Agreement by a liquidator or trustee in bankruptcy of the
Seller; or
	 
	 	11.2.3	 	the administration, insolvency or liquidation of the Seller.

	11.3	 	The guarantee contained in Clause 11.1 shall be a continuing guarantee and shall remain in
full force and effect until all the Seller’s obligations to the
Purchaser under this
Agreement have been duly performed or sums that have become due and payable to the Purchaser
(but remain unpaid by the Seller) have been paid, whether by the Seller or the Guarantor.
	 
	12.	 	VAT
	 
	12.1	 	Except where otherwise specified, an obligation to pay any sum under this contract includes
an obligation to pay VAT properly due on that sum or any part of it (against delivery of a VAT
invoice), and all sums payable under this contract are exclusive of VAT payable on them.
	 
	12.2	 	The Purchaser and the Seller intend and expect that the sale of the Assets will be a zero
rated export of goods under section 30 VATA.
	 
	12.3	 	The Purchaser warrants that it is not a taxable person for the purposes of VATA and does not
have a place of business in the UK from which taxable supplies are made.
	 
	12.4	 	The Purchaser shall ensure that the Purchaser’s Tools, the Spare Parts (excluding the
Consumed Spare Parts), Accessories and Manuals are exported to a destination outside the
European Community within 3 months from the earliest of:

	 	12.4.1	 	the Purchaser’s Tools, the Spare Parts (excluding the Consumed Spare Parts),
Accessories and Manuals being made available to the Purchaser pursuant to Schedule 7;
and
	 
	 	12.4.2	 	the date that the Purchase Price payable in respect of the Purchaser’s Tools, the
Spare Parts (excluding the Consumed Spare Parts), Accessories and Manuals transferred
on that Transfer Date is released from the Escrow Account pursuant to the Joint Escrow
Instructions; or

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	 	12.4.3	 	in relation to any Accepted Non-Compliant Tools (including Accessories and
Manuals associated with such Accepted Non-Compliant Tools), the date that the
Reduced Tool Price is paid by the Purchaser;

	 	 	(the “Time Period”), and shall, within the Time Period, provide the Seller with:

	 	(A)	 	two items on either the “Official Evidence” list or the
“Commercial Transport Evidence” list set forth in Schedule 9 which shall be
interpreted in accordance with HM Revenue & Customs Notice 703 — VAT: Export
of goods from the United Kingdom; and
	 
	 	(B)	 	any further information or documentation reasonably
requested by the Seller to enable the Seller to treat the supply of the
Purchaser’s Tools, the Spare Parts (excluding the Consumed Spare Parts),
Accessories and Manuals as a zero-rated supply.

	12.5	 	If the Purchaser fails to export the Purchaser’s Tools, the Spare Parts (excluding the
Consumed Spare Parts), Accessories and Manuals or provide the evidence of export as required
by Clause 12.4 above within the Time Period or if, for any other reason, the sale of any of
the Assets is subject to VAT at the standard rate, then the Purchaser shall pay to the Seller,
within four Business Days from the expiry of the Time Period, VAT at the standard rate on the
Purchase Price payable in respect of such Assets together with any interest, penalty,
surcharge or other sum demanded by HM Revenue & Customs (“Penalties”). The Purchaser shall pay
reasonable professional costs and expenses the Seller may incur in relation to such VAT and
Penalties, provided that the Seller gives the Purchaser reasonable notice prior to incurring
such costs and expenses, and, subject to Clause 12.6 and so far as permitted by Law, permits
the Purchaser to control any appeal or related proceedings,
provided that (a) the Purchaser
shall first indemnify and secure the Seller to their satisfaction against all losses
(including any Penalties), costs, interest, damages and expenses which the Seller may so
incur, (b) the Seller shall be entitled to participate in any such appeal or related
proceedings at its own cost and expense (including legal counsel’s fees and costs of
investigation), and (c) the Purchaser shall not agree to any settlement or compromise of, or
an entry of any judgment arising from, any such appeal or related proceedings except with the
prior written consent of the Seller , such consent not to be unreasonably withheld or delayed.
	 
	12.6	 	At the Purchaser’s cost, the Seller shall take or cause to be taken any action as reasonably
requested or that is reasonably necessary or appropriate to give effect to the provisions of
this Clause 12 provided that such action is consistent with the following provisions of this
Clause 12.6.

	 	12.6.1	 	The Seller shall notify the Purchaser of any enquiry by HM Revenue & Customs into
the transactions contemplated under this Agreement, and of any determination or
assessment by HM Revenue & Customs in respect of the same.
	 
	 	12.6.2	 	At the Purchaser’s cost, the Seller shall take such action and give such information
and assistance to give effect to the provisions of this Clause 12 as is reasonably
requested by the Purchaser or that is reasonably necessary or appropriate to give
effect to its provisions. For the avoidance of doubt, the Purchaser shall be entitled
to require the Seller by written notice to avoid, resist or appeal any determination
or assessment by HM Revenue & Customs that VAT is due in relation to the transactions
contemplated under this Agreement provided that:

- 15 -

 

	 	(A)	 	the Seller shall not he obliged to appeal against any determination or
assessment if, having given the Purchaser notice of such determination,
the Purchaser has not, by the earlier of 14 days from receipt by the
Seller of such notice, and 7 days prior to the expiry of any time for
appeal, received instructions in writing from the Purchaser to do so; and
	 
	 	(B)	 	the Seller shall not be obliged to comply with any request
of the Purchaser which involves contesting any determination or assessment
before any tribunal, court or other appellate body unless they have been
advised in writing by leading VAT counsel instructed by agreement between the
Purchaser and the Vendor (or failing agreement to be selected at the instance
of either party by the President for the time being of the General Council of
the Bar of England and Wales) at the expense of the Purchaser that an appeal
against the assessment will, on the balance of probabilities, be successful
and a copy of such advice has been provided to the Seller; and
	 
	 	(C)	 	the Seller shall not be obliged to take any action which in
the reasonable opinion of the Seller is likely to:

	 	(1)	 	increase a liability to tax of any company
in the group of companies of which the Seller is for the time being a
member; or
	 
	 	(2)	 	interfere with the normal course of
business of any such company; or
	 
	 	(3)	 	materially prejudice such company’s
relationship with HM Revenue and Customs.

	 	12.6.3	 	If either the Seller is not obliged to take any action pursuant to any of the
clauses 12.6.2(A), (B) or (C) or the Purchaser fails to respond to any written request
for instructions from the Seller within 10 days of such request, the Seller shall be
free to satisfy or settle the relevant enquiry, determination or assessment on such
terms as it may in its absolute discretion think fit and such satisfaction or
settlement shall be without prejudice to any liability of the Purchaser under this
Agreement.
	 
	 	12.6.4	 	The action which the Purchaser may request under this clause 12.6 shall include
(without limitation) the Seller applying to postpone (so far as legally possible) the
payment of any tax but shall not include allowing the Purchaser to take on or take
over the conduct of any proceedings of whatsoever nature arising in connection with
the determination or assessment in question.
	 
	 	12.6.5	 	Notwithstanding anything in the Agreement, the Seller shall not be obliged to take
any steps under this clause 12.6 unless the Purchaser shall first indemnify and secure
the Seller to their satisfaction against all losses (including any Penalties), costs,
interest, damages and expenses which the Seller may so incur.

	12.7	 	If the Purchaser fails to pay any amount in respect of VAT when due to be paid to the Seller
pursuant to this Agreement, the Purchaser shall in addition pay interest on it at the rate of
four per cent (4%) above the Bank of England base rate from the date that such payment was
payable until the date that the Purcahser makes actual payment to the Seller.

- 16 -

 

	12.8	 	If the Purchaser fails in any respect to comply with its obligations under this Clause
12 as a direct or indirect result of which HM Revenue & Customs impose any interest, penalty
or surcharge on the Seller then the Purchaser shall immediately on demand pay to the Seller
an amount equal to such interest, penalty or surcharge, and shall pay to the Seller an
amount equal to any reasonable professional costs the Seller incurs in connection with the
imposition.
	 
	12.9	 	To the extent that any sale pursuant to this Agreement is not a zero rated export of goods
under section 30 VATA, the Seller or the Guarantor agrees to provide reasonable assistance and
information, at the Purchaser’s cost, as the Purchaser shall reasonably require in seeking to
reclaim any VAT charge to it under the terms of this Agreement from HM Revenue & Customs.
	 
	13.	 	WARRANTIES BY THE SELLER
	 
	13.1	 	The Seller warrants to the Purchaser in the terms of the statements set forth in Schedule 1
as at the date of this Agreement.
	 
	13.2	 	The Seller acknowledges and accepts that the Purchaser in entering into this Agreement has
relied on the Seller’s Warranties.
	 
	13.3	 	Each of the Seller’s Warranties shall be construed as a separate and independent provision.
	 
	13.4	 	The Seller’s Warranties are given subject to matters fairly disclosed.
	 
	14.	 	WARRANTIES BY THE PURCHASER
	 
	14.1	 	The Purchaser warrants to the Seller in the terms of the statements set forth in Schedule 2
as at the date of this Agreement.
	 
	14.2	 	The Purchaser acknowledges and accepts that the Seller in entering into this Agreement has
relied on the Purchaser’s Warranties.
	 
	14.3	 	Each of the Purchaser’s Warranties shall be construed as a separate and independent
provision.
	 
	15.	 	WARRANTIES BY THE GUARANTOR
	 
	15.1	 	The Guarantor warrants to the Seller in the terms of the statements set forth in Schedule 3
as at the date of this Agreement.
	 
	15.2	 	The Guarantor acknowledges and accepts that the Seller in entering into this Agreement has
relied on the Guarantor’s Warranties.
	 
	15.3	 	Each of the Guarantor’s Warranties shall be construed as a separate and independent
provision.
	 
	16.	 	LIMITATION OF LIABILITY
	 
	16.1	 	Maximum amount of liability

	 	16.1.1	 	The combined, cumulative, aggregate, joint liability of the Seller and the Guarantor
(for the avoidance of doubt the cumulative, aggregate, liability of the Seller plus

- 17 -

 

	 	 	 	the cumulative, aggregate, liability of the Guarantor) for all Claims shall not
exceed the Purchase Price (as amended in accordance with Clause 5); and
	 
	 	16.1.2	 	The cumulative, aggregate liability of the Purchaser for all Claims shall not
exceed US$10 million.

	16.2	 	De Minimis
	 
	 	 	No Party shall have any liability in respect of a Claim unless the liability agreed or
determined in respect of the Claim (excluding related interest and costs) exceeds
US$25,000 (twenty five thousand US dollars)
	 
	16.3	 	Minimum amount of aggregate liability
	 
	 	 	No Party shall have any liability in respect of a Claim unless the aggregate liability
agreed or determined (excluding related interest and costs) in respect of all Claims
exceeding US$25,000 (twenty five thousand US dollars) per Claim as referred to in Clause
16.2 exceeds US$100,000 (one hundred thousand US dollars) provided that if such aggregate
liability exceeds US$100,000 (one hundred thousand US dollars), then the Party subject to
such Claim shall be liable for the whole of the liability.
	 
	16.4	 	Time limits
	 
	 	 	Any claims made by a Party against another Party hereunder shall be made promptly when the
claiming Party becomes aware of the basis for or circumstances that may give rise to a
Claim. No Party shall have any liability or obligation with respect to any Claim if its
defence of the Claim is materially prejudiced because it received late notice or no notice
of the Claim from the claiming Party. No Claim shall be made against a Party unless notice
in writing is given to the other Party or Parties by the claiming Party in accordance with
the notice provisions under Clause 22 of this Agreement on or before the date falling six
months after the Tool Removal Completion Date, or in the event of an Overrun, the Long
Stop Date, or in the event of an Extension Period, the last day of any Extension Period. A
Claim in respect of which notice is given in accordance with this Clause shall, if it has
not previously been satisfied, settled or withdrawn, be deemed to have been withdrawn and
be barred and unenforceable unless legal proceedings have been issued and served on the
other Parties in respect of such Claim within six months after the date of such notice or,
where the Claim is based on a contingent liability, within six months after such liability
ceases to be contingent.
	 
	16.5	 	Exclusion of Claims

	 	16.5.1	 	No Party shall have any liability in respect of any Claim in relation to any matter:

	 	(A)	 	fairly disclosed by such Party, with sufficient detail to
identify the nature of and extent of the matters so disclosed;
	 
	 	(B)	 	actually known by the other Party or Parties prior to the
date of this Agreement;
	 
	 	(C)	 	which would not have occurred but for any act, omission or
transaction on or after the date of this Agreement by or with the consent of
the other Party or Parties.

	 	16.5.2	 	The Purchaser specifically acknowledges and agrees that it shall have no Claim
against the Seller or the Guarantor on any account whatsoever in relation to the

- 18 -

 

	 	 	 	Assets or Consumables (whether on account of its state or condition, fitness for
purpose or otherwise) save as provided in Schedule 7.

	16.6	 	No special loss
	 
	 	 	No Party shall have liability under a Claim to the extent that such Claim constitutes
punitive, incidental or special loss or damages, or losses or damages related to or arising
from any loss of profits, opportunity costs or financing costs, delay or change in
valuation of any real property or other asset.
	 
	16.7	 	Contingent Claims
	 
	 	 	No Party shall have liability in respect of any Claim which is based upon a liability
which is contingent only unless and until such contingent liability becomes an actual
liability and is due and payable.
	 
	16.8	 	No other warranties or covenants

	 	16.8.1	 	The Purchaser acknowledges and agrees that it has made its own inquiry and
investigation into, and, based thereon, has formed an independent judgment concerning
the Transaction, and the Purchaser has been furnished with or given sufficient access
to such information about the Assets, the Consumables, the Seller and its operations
and other information relevant to the Transaction.
	 
	 	16.8.2	 	The Purchaser acknowledges that, except as expressly set forth in this Agreement,
there are no warranties of any kind, express or implied, by the Seller or any other
affiliated companies of the Seller, including, without limitation, the Guarantor.
	 
	 	16.8.3	 	Notwithstanding anything to the contrary contained herein, no Party shall have any
liability in respect of any liability or loss:

	 	(A)	 	to the extent that it arises or is increased as a result of
the passing of, or a change in, any Law, interpretation of the Law or
administrative practice of any Governmental Entity, after the date of this
Agreement;
	 
	 	(B)	 	if it would not have arisen but for any act, omission,
transaction or arrangement carried out at the request of or with the written
consent of the other Party; or
	 
	 	(C)	 	to the extent that it relates to any liability or loss for
which the other Party or any of its affiliates makes recovery whether by
contribution, indemnity or insurance (except that no Party shall be required
to make a claim under any insurance policy ahead of any Claim against the
other Party if such insurance claim will result in a material increase of
that Party’s insurance premiums).

	16.9	 	No double recovery
	 
	 	 	A Party is not entitled to recover damages or otherwise obtain payment, reimbursement or
restitution under this Agreement more than once in respect of the same loss or liability
(other than a recurring loss or liability).

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	16.10	 	Non-applicability in the event of fraud or wilful misconduct
	 
	 	 	The exclusions and limitations set forth in this Clause 16 shall not apply in relation to
Claims which are the consequence of fraud or wilful misconduct by any Party.

	17.	 	REMEDIES
	 
	17.1	 	A Party’s rights and remedies in respect of any Claim shall be limited only to damages for
breach of contract and as set forth in Clause 16. A Party shall not be entitled to (i)
rescind or
terminate this Agreement, the Tri-Partite Agreement, the Escrow Agreement or any of the
documents referred thereto, (ii) void or otherwise challenge consummation of the
Transaction or any portion thereof, or (iii) recover damages in tort, including pursuant to
a claim for misrepresentation.
	 
	17.2	 	Nothing in this Agreement shall operate to reduce any Party’s common law duty to mitigate
any loss giving rise to any Claim and for the avoidance of doubt each Party shall be under a
duty so to mitigate.
	 
	17.3	 	The Purchaser agrees to waive any right or remedy which the Purchaser may have against
any Employee, consultant, representative, advisor or agent of the Seller or the Guarantor in
connection with any representation, warranty, agreement or statement by any such person in
relation to the Transaction, this Agreement, the Tri-Partite Agreement, the Escrow
Agreement and any other document to be delivered or executed in connection therewith. The
Seller agrees to waive any right or remedy which the Seller may have against any employee,
consultant, representative, advisor or agent of the Purchaser in connection with any
representation, warranty, agreement or statement by any such person in relation to the
Transaction, this Agreement, the Tri-Partite Agreement, the Escrow Agreement and any
other document to be delivered or executed in connection therewith.
	 
	18.	 	THIRD PARTY CLAIMS
	 
	 	 	A Party (the “Indemnifying Party”) shall promptly notify the other Parties of any claims
against the Indemnifying Party brought or threatened by any person (including any
Governmental Entity) in respect of which the Indemnifying Party is or may be liable for
Losses under this Agreement (each, a “Third Party Claim”). The Party receiving such notice
(the “Indemnified Party”) may at its election undertake and conduct the defence of such
Third Party Claim with legal counsel that it selects, and the Indemnifying Party shall be
entitled to participate in at its own cost and expense (including legal counsel’s fees and
costs of investigation), but not to determine, control or conduct, the defence of such
Third Party Claim. If the Indemnified Party has assumed the defence of a Third Party Claim,
the Indemnifying Party shall not be liable for any costs and expenses (including legal
counsel’s fees and costs of investigation) subsequently incurred by the Indemnified Party
in connection with the defence of the Third Party Claim. The Indemnified Party shall not
agree to any settlement or compromise of, or an entry of any judgment arising from, any
such Third Party Claim except with the prior written consent of the Indemnifying Party,
such consent not to be unreasonably withheld or delayed, even if such settlement or
compromise gives the claimant or the plaintiff to the Indemnifying Party a release from
liability in respect of such Third Party Claim.

- 20 -

 

	19.	 	ANNOUNCEMENTS
	 
	19.1	 	Subject to Clause 19.2, each of the Parties undertakes that it shall not make any
announcement or issue any circular or other publicity relating to the existence or subject
matter of this Agreement without it being approved in writing by the other Parties as to its
content, form and manner of publication (such approval not to be unreasonably withheld or
delayed). The Parties shall consult together upon the form of any such announcement or
circular in relation to the subject matter of this Agreement and each of the other Parties
shall
promptly provide such information and comment as the Party making the announcement or
sending out the circular may from time to time reasonably request.
	 
	19.2	 	Any Party shall be permitted to make announcements relating to the existence or subject
matter of this Agreement without it being approved in writing by the other Parties if and to the extent:

	 	19.2.1	 	required by Law; or
	 
	 	19.2.2	 	required by any securities exchange or regulatory or any other Governmental
Entity to which any Party is subject or submits, wherever situated.

	19.3	 	Nothing in this Clause 19 shall prohibit the Purchaser from engaging in private discussions
with select potential buyers for some but not all of the Purchaser’s Tools at any time after
the Condition has been satisfied provided that any such private discussion is limited to the
make, model, specification and general performance data of the relevant Purchaser’s Tools and does
not involve the use of any public advertising.
	 
	20.	 	CONFIDENTIALITY
	 
	20.1	 	Subject to Clauses 20.2 and 20.3, the Seller, the Guarantor and the Purchaser each undertake
to treat as confidential, and not to disclose or use, directly or indirectly, for its own or any
other person’s benefit, all information obtained as a result of entering into or performing this
Agreement which relates either to the provisions of, or negotiations relating to, this
Agreement or to the business or affairs of the any Party.
	 
	20.2	 	A Party may disclose information which is subject to Clause 20.1 to its employees,
professional advisers, auditors, and bankers.
	 
	20.3	 	A Party may disclose information which is subject to Clause 20.1 if and to the extent:

	 	20.3.1	 	required by Law;
	 
	 	20.3.2	 	required by any securities exchange or regulatory or any other Governmental
Entity to which any Party is subject or submits, wherever situated;
	 
	 	20.3.3	 	required to vest the full benefit of this Agreement in that Party or expressly
contemplated by this Agreement;
	 
	 	20.3.4	 	the information has come into the public domain through no fault of that party;
	 
	 	20.3.5	 	the information was already known to the relevant party at the time it was disclosed
to it or otherwise obtained by it; or
	 
	 	20.3.6	 	the Party to whom it relates has given their consent in writing;

- 21 -

 

	 	 	 	and any information to be disclosed pursuant to Clauses 20.3.1 or 20.3.2 shall be disclosed
so far as is reasonably practicable only after prior consultation with each of the other
Parties.

	21.	 	OTHER PROVISIONS
	 
	21.1	 	Costs
	 
	 	 	Except as otherwise stated in this Agreement and any documents referred to in it, each of
the Parties shall pay its own costs and expenses (including legal fees and VAT (if any))
incurred by it in connection with the negotiation, preparation and execution of this
Agreement and all other documents referred to in it and the Transaction.
	 
	21.2	 	Deductions and Withholdings

	 	21.2.1	 	For the purposes of this Clause 21.2:
	 
	 	 	 	A “UK Tax Paying Company” shall mean, a company incorporated in England and
Wales, and resident for tax purposes, carrying on business and subject to
corporation tax, in the United Kingdom of Great Britain & Northern Ireland; and
	 
	 	 	 	the Seller shall be entitled in its absolute discretion:

	 	(A)	 	to assess whether or not any deductions or withholdings are
required by law and whether or not such deductions or withholdings would have been
required had the Purchaser been a UK Tax Paying Company;
	 
	 	(B)	 	to assess (the extent to which an amount paid or due to the
Purchaser under this Agreement would have been subject to UK corporation tax had the
Purchaser been a UK Tax Paying Company; and

	 	 	 	in both cases, to treat the Purchaser accordingly.

	21.2.2	 	Except as expressly provided in this Agreement, any amount payable under this
Agreement shall be paid free and clear of all deductions, withholdings,
counter-claims or set-off whatsoever, save only as may be required by Law.
	 
	21.2.3	 	If, subject to Clause 21.2.1, any deductions or withholdings would be required by
law to be made from any sums payable by the Seller to the Purchaser, the Seller
shall be obliged to pay the Purchaser such amount as would, after the deduction or
withholding has been made, leave the Purchaser with the same amount as it would
have been entitled to receive in the absence of such requirement to make a
deduction or withholding, unless the Seller would not have had to make such
deductions or withholdings had the Purchaser been a UK Tax Paying Company.
	 
	21.2.4	 	If the Seller would be required by law to make a deduction or
withholding as is referred to in Clause 21.2.3, the Seller shall:

	 	(A)	 	make such deduction or withholding;
	 
	 	(B)	 	account for the full amount deducted or withheld to the relevant authority in accordance with applicable law; and
	 
	 	(C)	 	provide to the Purchaser the original, or a certified copy, of a receipt or other documentation evidencing the above.

- 22 -

 

	 	21.2.5	 	If, subject to Clause 21.2.1, any amount paid or due to the Purchaser
under this Agreement would be a taxable receipt of the Purchaser, then the amount
so paid or due (the “Net Amount”) shall be increased to an amount which, after
subtraction of the amount of any tax on such increased amount which arises, or
would but for the availability of any relief arise, shall equal the Net Amount
provided that if any payment is initially made on the basis that the amount is
not taxable in the hands of the Purchaser and it is subsequently determined that
it is, or vice versa, appropriate adjustments shall be made between the Purchaser
and the Seller and provided further that the amount paid or due shall not be
increased to the extent that such increase would not have been necessary had the
Purchaser been a UK Tax Paying Company.

	21.3	 	Further assurance
	 
	 	 	Each of the Parties shall, at its own expense, do, execute and perform all further acts,
deeds, documents and things as may be reasonably requested from time to time in order to
implement all the provisions of this Agreement and to transfer the legal and beneficial
title to the Assets in accordance with this Agreement.
	 
	21.4	 	Variation
	 
	 	 	Except for Schedule 5, which may be amended by the Seller pursuant to Clause 5.4 hereof,
no variation of this Agreement shall be effective unless made in writing and signed by or
on behalf of each of the Parties.
	 
	21.5	 	Construction
	 
	 	 	The Parties have participated jointly in the drafting and negotiation of this Agreement.
This Agreement shall be construed as if drafted jointly by the Parties and no presumption
or burden of proof shall arise favouring or disfavouring any Party by virtue of the
authorship of any of the provisions herein.
	 
	21.6	 	Entire agreement

	 	21.6.1	 	This Agreement and the Related Agreements contain the entire agreement in
relation to the matters contemplated by this Agreement and supersede any previous
agreements or undertakings between or among the Parties in relation to such
matters.
	 
	 	21.6.2	 	Each of the Parties acknowledges that in entering into this Agreement it has not
relied on any representation, warranty or undertaking not set forth in this
Agreement and that (in the absence of fraud) it will not have any right or remedy
arising out of any such representation, warranty or undertaking.

	21.7	 	Waivers and remedies

	 	21.7.1	 	No failure or delay to exercise, or other relaxation or indulgence granted in
relation to, any power, right or remedy under this Agreement shall operate as a waiver of
it or impair or prejudice it nor shall any single or partial exercise or waiver of
any power, right or remedy preclude its further exercise or the exercise of any other
power, right or remedy.
	 
	 	21.7.2	 	All rights of any person contained in this Agreement are in addition to all rights
vested or to be vested in it pursuant to common law or statute.

- 23 -

 

	21.8	 	Severability
	 
	 	 	Each of the provisions of this Agreement is distinct and severable from the others and if
at any time one or more of such provisions is or becomes invalid, unlawful or
unenforceable (whether wholly or to any extent), the validity, lawfulness and
enforceability of the remaining provisions (or the same provision to any other extent)
shall not in any way be affected or impaired.
	 
	21.9	 	Successors
	 
	 	 	This Agreement shall be binding on and enure to the benefit of each Party and its lawful
successors.
	 
	21.10	 	Assignment
	 
	 	 	None of the Parties shall be entitled to assign or transfer any of its rights or benefits
under this Agreement.
	 
	21.11	 	Third party rights
	 
	 	 	Nothing in this Agreement confers any rights on any person under the Contracts (Rights of
Third Parties) Act 1999 but this does not affect any right or remedy of any person which
exists or is available apart from that Act.
	 
	21.12	 	Counterparts
	 
	 	 	This Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original and which shall together constitute one and the same Agreement.
	 
	22.	 	NOTICES
	 
	22.1	 	Each party may give any notice or other communication under or in connection with this
Agreement by letter, facsimile transmission or electronic mail addressed to the other Party.
The address for service of each Party shall be the address set forth in Clause 22.3 or such
other address for service as the addressee may from time to time notify to the other Parties
for the purposes of this Clause.
	 
	22.2	 	Any such communication will be deemed to be served:

	 	22.2.1	 	if personally delivered, at the time of delivery and, in proving service, it shall
be sufficient to produce a receipt for the notice signed by or on behalf of the
addressee;
	 
	 	22.2.2	 	if by letter, at noon on the tenth Business Day after such letter was posted (or, in
the case of airmail, five Business Days after such letter was posted) and, in proving
service, it shall be sufficient to prove that the letter was properly stamped
first class (or airmail), addressed and delivered to the postal authorities;
	 
	 	22.2.3	 	if by overnight courier (such as Federal Express or DHL), on the third Business
Day after such courier was dispatched, and in proving service, it shall be
sufficient to produce a tracking number or a receipt confirmation indicating that the courier
was dispatched and received by the recipient;

- 24 -

 

	 	22.2.4	 	if by facsimile transmission, at noon on the Business Day after the day of
transmission and, in proving service, it shall be sufficient to produce a transmission
report from the sender’s facsimile machine indicating that the facsimile was sent in
its entirety to the recipient’s facsimile number; and
	 
	 	22.2.5	 	if by electronic mail, at noon on the Business Day after such communication was
sent and, in proving service, it shall be sufficient to produce a computer print
out indicating that the message was sent to the recipient’s electronic mail address.

	22.3	 	Details of each Party for service of notice are as follows:

	 	 	 	 	 
	 

	 	Name:
	 	Atmel North Tyneside Limited (Seller)
	 

	 	Address:
	 	C/o Atmel Corporation
	 

	 	 	 	2325 Orchard Parkway
	 

	 	 	 	San Jose, California 95131
	 

	 	 	 	USA
	 
	 	 	 	 
	 

	 	Fax no:
	 	+1 408 436 4111
	 

	 	Electronic mail address:
	 	preutens@atmel.com and
nyamaguchi@atmel.com
	 

	 	Tel no:
	 	+ 1408 441 0311
	 

	 	Attention:
	 	Chief Legal Officer
	 
	 	 	 	 
	 

	 	Name:
	 	Taiwan Semiconductor Manufacturing Company
	 

	 	Address:
	 	Limited (Purchaser)
	 

	 	 	 	8 Li-Hsin 6 Road
	 

	 	 	 	Hsinchu Science Park
	 

	 	 	 	Hisinchu, Taiwan ROC
	 
	 	 	 	 
	 

	 	Fax no:
	 	+886-3-567-8689
	 

	 	Electronic mail address:
	 	Dick Thurston@tsmc.com
	 

	 	Tel no:
	 	+886-3-568-2002
	 

	 	Attention:
	 	Office of the General Counsel
	 
	 	 	 	 
	 

	 	Name:
	 	Atmel Corporation (Guarantor)
	 

	 	Address:
	 	2325 Orchard Parkway
	 

	 	 	 	San Jose, California 95131
	 

	 	 	 	USA
	 
	 	 	 	 
	 

	 	Fax no:
	 	+1 408 436 4111
	 

	 	Electronic mail address:
	 	preutens@atmel.com and
nyamaguchi@atmel.com
	 

	 	Tel no:
	 	+1 408 441 0311
	 

	 	Attention:
	 	Chief Legal Officer

	23.	 	LAW AND JURISDICTION
	 
	23.1	 	This Agreement and all disputes or claims arising out of or in connection with it shall be
governed by, and construed in accordance with, English law.
	 
	23.2	 	Each Party hereby irrevocably submits to the exclusive jurisdiction of the courts of England
and Wales in relation to any claim, dispute or difference concerning this Agreement and any
matter arising therefrom.

- 25 -

 

	23.3	 	Each of the Parties agrees that without preventing any other mode of service, any
document in action (without limitation) may be served on any Party by being delivered to or left for
that Party at its address for service of notices under Clause 22; or (a) in the case of the
Purchaser, by being delivered to its agent in accordance with Clause 23.3, marked, for so long as such
agent is Simmons & Simmons, “For the urgent attention of the Managing Partner, Corporate
Department”, and (b) in the case of the Seller or the Guarantor, by being delivered to their
agent in accordance with Clause 23.4.
	 
	23.4	 	The Purchaser irrevocably appoints Simmons & Simmons of One Ropemaker Street, London
EC2Y 9SS, United Kingdom, fax number +44 (0)20 7628 2070, as its agent to receive on its
behalf in England or Wales service of any proceedings arising out of or in connection with
this Agreement. Such service shall be deemed completed on delivery to such agent (whether
or not it is forwarded to and received by the Purchaser) and shall be valid until such time as
each of the Seller and the Guarantor has received prior written notice that such agent has
ceased to act as agent pursuant to this Clause. If for any reason such agent ceases to be able
to act as agent or no longer has an address in England or Wales, the Purchaser shall forthwith
appoint a substitute acceptable to the Seller and the Guarantor (each acting reasonably) and
deliver to the Seller and the Guarantor the new agent’s name, address and fax number within
England and Wales.
	 
	23.5	 	As soon as reasonably practicable following signing, and in any event no later than ten
Business Days following signing of this Agreement, each of the Seller and the Guarantor
shall appoint an agent acceptable to the Purchaser (acting reasonably) and deliver to the
Purchaser such agent’s name, address and fax number within England and Wales to receive
on its behalf in England or Wales service of any proceedings arising out of or in connection
with this Agreement. Such service shall be deemed completed on delivery to such agent
(whether or not it is forwarded to and received by the Seller or the Guarantor (as the case
may be)) and shall be valid until such time as the Purchaser has received prior written notice
that such agent has ceased to act as agent pursuant to this Clause. If for any reason such agent
ceases to be able to act as agent or no longer has an address in England or Wales, each of
the Seller and the Guarantor shall forthwith appoint a substitute acceptable to the Purchaser
(acting reasonably) and deliver to the Purchaser the new agent’s name, address and fax
number within England and Wales.

- 26 -

 

AS WITNESS of which this Agreement has been duly signed on the date written at the beginning of
this Agreement.

	 	 	 	 	 	 	 
	Signed
by Steven Laub

	 	 	)	 	 	 
	a director or officer duly authorised

	 	 	)	 	 	 
	for and on behalf of ATMEL NORTH

	)	 	 	/s/ Steven Laub
	TYNESIDE LIMITED

	 	 	)	 	 	Director/Officer
	Signature
of witness:                    /s/ Walt Lifsey
	 	 	 
	Name (in BLOCK CAPITALS):
 WALT LIFSEY

	 	 	 
	Address:

	 	 	 
	 	 	 	 	 	 	 
	Signed by
Steven Laub
	 	 	)	 	 	 
	a director or officer duly authorised
	 	 	)	 	 	 
	for and on behalf of ATMEL
	 	 	)	 	 	/s/ Steven Laub
	CORPORATION
	 	 	)	 	 	Director/Officer

Signature
of
witness:                    /s/
Walt Lifsey

Name (in
BLOCK CAPITALS): WALT LIFSEY

Address:

[Signature Page to Asset Sale Agreement]

 

 

	 	 	 	 	 	 	 
	Signed by
C.C. Wei
	 	)	 	 	 	 
	a director
or officer duly authorised
	 	)	 	 	 	 
	for and on behalf of TAIWAN
	 	)	 	 	 	 
	SEMICONDUCTOR
	 	)	 	 	 	 
	MANUFACTURING COMPANY
	 	)	 	           
    /s/ C.C. Wei
	LIMITED
	 	)	 	          
     Authorised Officer

[Signature
Page to Asset Sale Agreement]exv10w16

 

Exhibit 10.16

Herbert Smith

8 OCTOBER 2007

 

AGREEMENT

in relation to the removal of equipment from

premises at Middle Engine Lane, Hadrian

Business Park, Silverlink, Wallsend,

Newcastle Upon Tyne, NE28 9NZ

 

by and among

ATMEL NORTH TYNESIDE LIMITED, 

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED,

HlGHBRIDGE BUSINESS PARK LIMITED,

ATMEL CORPORATION

and

HIGHBRIDGE PROPERTIES PLC

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Clause	 	Headings	 	Page	 
	1.	 	DEFINITIONS
	 	 	2	 
	2.	 	INTERPRETATION
	 	 	6	 
	3.	 	CONDITION
	 	 	7	 
	4.	 	ATMEL’S OBLIGATIONS TO HIGHBRIDGE
	 	 	8	 
	5.	 	PRE-REMOVAL PROCEDURES
	 	 	8	 
	6.	 	ENVIRONMENTAL OBJECTIVE
	 	 	9	 
	7.	 	ATMEL ENVIRONMENTAL WORKS AND INDEMNITY
	 	 	10	 
	8.	 	TSMC INDEMNITY
	 	 	12	 
	9.	 	HIGHBRIDGE RESPONSIBILITY AND INDEMNITY
	 	 	13	 
	10.	 	FINAL TOOL REMOVAL
	 	 	13	 
	11.	 	HIGHBRIDGE RELEASE
	 	 	13	 
	12.	 	EMPLOYEES
	 	 	13	 
	13.	 	GUARANTEES
	 	 	14	 
	14.	 	LIMITATION OF LIABILITY
	 	 	15	 
	15.	 	REMEDIES
	 	 	15	 
	16.	 	OTHER PROVISIONS
	 	 	15	 
	17.	 	NOTICES
	 	 	18	 
	18.	 	LAW AND JURISDICTION
	 	 	20	 
	SCHEDULE 1 - CONSULTANTS	 	 	21	 
	SCHEDULE 2 - M W ZANDER PROPOSAL	 	 	22	 
	SCHEDULE 3 - TOOLS	 	 	23	 

 

 

THIS AGREEMENT is made this 8th day of October 2007

BETWEEN:

	(1)	 	ATMEL NORTH TYNESIDE LIMITED (incorporated and registered in England and Wales under company
number 04018730 the registered office of which is at Lacon House, Theobalds Road, London WC1X
8RW (“Atmel”);
	 
	(2)	 	TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
(incorporated in Taiwan, Republic of China) the registered office/principal place of
business of which is at 8 Li-Hsin 6 Road, Hsinchu Science Park, Hsinchu, Taiwan ROC 300-77
(“TSMC”);
	 
	(3)	 	HIGHBRIDGE BUSINESS PARK LIMITED (incorporated and registered in England and Wales under
company number 3493084), the registered office of which is at 131 Edgware Road, London, W2 2AP
(“Highbridge”);
	 
	(4)	 	ATMEL CORPORATION (incorporated in the State of Delaware) the principal place of business of
which is at 2325 Orchard Parkway, San Jose, California 95131, USA (“Atmel Guarantor”); and
	 
	(5)	 	HIGHBRIDGE PROPERTIES PLC (incorporated and registered in England and Wales under company
number 02244773), the registered office of which is at 131 Edgware Road, London, W2 2AP(the
“Highbridge Guarantor”).

WHEREAS:

	(A)	 	all capitalized terms used in this Agreement are defined in Clause 1 below, and all
capitalized terms used herein but not defined herein shall have the meanings attributed
thereto in the Asset Agreement or the Property Agreement as the case may be;
	 
	(B)	 	Atmel, the Atmel Guarantor, Highbridge and the Highbridge Guarantor are parties to an
agreement of even date herewith for the sale and purchase of the residue of the leasehold
interests in the Premises;
	 
	(C)	 	Atmel, the Atmel Guarantor and TSMC are parties to an agreement of even date herewith for the
sale and purchase of certain assets of Atmel;
	 
	(D)	 	pursuant to the Asset Agreement, TSMC has agreed to remove the TSMC Tools from the Premises
on the terms set forth herein;
	 
	(E)	 	Atmel has agreed to remove the Atmel Tools from the Premises on the terms set forth herein;
	 
	(F)	 	the Parties have agreed to regulate the removal of TSMC Tools and the Atmel Tools from the
Premises and apportion liability for such removal as between the Parties on the terms set
forth herein;
	 
	(G)	 	the Atmel Guarantor has agreed to guarantee the obligations of Atmel under this Agreement;
and
	 
	(H)	 	the Highbridge Guarantor has agreed to guarantee the obligations of Highbridge under
this Agreement.

1

 

IT IS AGREED as follows:

	1.	 	DEFINITIONS
	 
	 	 	In this Agreement, the following definitions apply:
	 
	 	 	“Agreement” means this agreement in relation to the removal of equipment from the Premises
by and among Atmel, TSMC, Highbridge, the Atmel Guarantor, and the Highbridge Guarantor;
	 
	 	 	“Asset Agreement” means the agreement of even date herewith for the sale and purchase of
the Assets to be entered into between Atmel, Atmel Guarantor and TSMC;
	 
	 	 	“Atmel Invitees” means any affiliate, employee, invitee, licensee, consultant contractor,
agent or representative of Atmel or the Atmel Guarantor;
	 
	 	 	“Atmel Plan” shall have the meaning attributed to it in Clause 7,4 of this Agreement;
	 
	 	 	“Atmel Tools” means all tools, accessories, spare parts, and all other equipment and
assets located at the Premises other than the TSMC’s Tools, which Atmel and TSMC intend to
transfer to TSMC in accordance with the Asset Agreement;
	 
	 	 	“Atmel Tool Removal” means the removal of all Atmel Tools from the Premises by Atmel;
	 
	 	 	“Atmel Works” shall have the meaning attributed to it in Clause 7.3 of this Agreement;
	 
	 	 	“Baseline Environmental Condition” means the presence of Hazardous Materials in soil
and/or groundwater at or under the Premises as identified in the Baseline Environmental
Investigation;
	 
	 	 	“Baseline Environmental Investigation” means the report of the Phase II environmental site
assessment and investigation of the Premises performed by Cundall Johnson and Partners LLP
as of 22 August 2007 and agreed to by the Parties hereto as being definitive, as between
them, of the environmental condition of the soil and groundwater as of 22 August 2007,
including as to whether Atmel could be required to undertake Remedial Action;
	 
	 	 	“Business Day” means a day other than Saturday, Sunday or a day on which banks are
authorised to close in London or Taipei;
	 
	 	 	“CDM Regulations” shall have the meaning attributed to it in Clause 5.3 of this Agreement;
	 
	 	 	“Closing” shall have the meaning attributed to it in Clause 3.3 of this Agreement;
	 
	 	 	“Closing Date” shall mean the date upon which the Closing occurs under Clause 3.3;
	 
	 	 	“Condition” shall have the meaning attributed to it in Clause 3.1 of this Agreement;
	 
	 	 	“Condition Satisfaction Notice” shall have the meaning attributed to it in Clause 3.3 of
this Agreement;
	 
	 	 	“Conditional Option” means the Conditional Option Agreement of even date herewith to be
entered into between Atmel and Highbridge relating to the plot of land being retained by

2

 

	 	 	Atmel (located near the parking area to the office building) which is subject to the contract
dated 15 November 2006 among (i) Atmel, (ii) Sandalbeech Limited and (iii) Honda Motor Europe
Limited;
	 
	 	 	“Consultant” means M W Zander, and each of Atmel and Highbridge shall use all reasonable
endeavours to jointly select and appoint M W Zander after the date hereof at Atmel’s cost with
respect to the Oversight and Monitoring Services only, on the basis of the Consultant Proposal;
provided, however, that if Atmel and Highbridge (both acting reasonably) jointly decide
not to accept or agree to the Consultant Proposal and any other terms and conditions, including,
without limitation, any such terms in the Consultant Contract, as required by M W Zander, Atmel
and Highbridge (both acting reasonably) may (i) jointly select and appoint any other expert listed
in Schedule 1 and (ii) jointly seek to accept and agree to another proposal and other terms and
conditions, including, without limitation, any such terms in the Consultant Contract, submitted by
such other expert;
	 
	 	 	“Consultant Contract” means the agreement by and among the Consultant, Atmel and Highbridge to be
entered after the date hereof, which shall set forth the terms of Oversight and Monitoring
Services to be provided by Consultant at the Premises at Atmel’s cost with respect to the
Oversight and Monitoring Services, such terms to be agreed by Atmel and Highbridge acting
reasonably and to include professional indemnity coverage for the Consultant of not less than
£5,000,000;
	 
	 	 	“Consultant Proposal” means the proposal submitted by M W Zander at or about the date hereof and
attached hereto as Schedule 2 subject to any amendments that Atmel and Highbridge shall agree
(both acting reasonably), and if M W Zander is not jointly selected or appointed by Atmel and
Highbridge, any other proposal submitted by another Consultant and agreed by Atmel and Highbridge
(both acting reasonably);
	 
	 	 	“Employees” means the persons employed by Atmel immediately before the date hereof and any further
persons employed by Atmel on and prior to the Long Stop Date (or expiry of the Extension if
applicable);
	 
	 	 	“Environmental Laws” means any Laws or legal requirements applicable to the Premises relating to
pollution or protection of the environment including laws, regulations, code, ordinances, rules,
orders, policies or guidelines relating to emissions, discharges, releases or the presence of
Hazardous Materials, decontamination or decommissioning of equipment and other items containing
Hazardous Materials, or otherwise relating to the manufacture, processing, registration,
distribution, labelling, recycling, use, treatment, storage, disposal, transport or handling of
Hazardous Materials including for the avoidance and doubt any such laws or legal requirements
relating to town and country planning;
	 
	 	 	“Escrow Agreement” means the agreement of at or about the date hereof relating to an escrow
account for the sale and purchase of the Assets to be entered into among Atmel, TSMC and JP
Morgan;
	 
	 	 	“Extension Period” shall have the meaning attributed to it in Clause 7.3 of this Agreement;
	 
	 	 	“Governmental Entity” means any supranational, national, international, state, municipal, local or
foreign government, any instrumentality, subdivision, court, administrative agency or commission
or other governmental authority or instrumentality;

3

 

	 	 	“Hazardous Materials” means any substance which alone or in combination with any other substance
is capable of giving rise to harm or damage to property, the environment, man or any other
organism supported by the environment including but not limited to chemicals, pollutants,
contaminants, wastes, toxic substances (including asbestos and asbestos containing materials),
hazardous materials, hazardous substances, hazardous waste, radioactive and biological materials,
noxious chemicals and gases, petroleum and petroleum products and polychlorinated biphenyls;
	 
	 	 	“Highbridge Invitees” means any affiliate, employee, invitee, licensee, consultant contractor,
agent or representative of Highbridge or the Highbridge Guarantor but not including Atmel, TSMC,
the Atmel Invitees or the TSMC Invitees;
	 
	 	 	“Highbridge Lender” means the Royal Bank of Scotland plc or, if not chosen by Highbridge to
provide finance for this Transaction, such other lender as Highbridge may notify to Atmel in
writing;
	 
	 	 	“Highbridge Plan” shall have the meaning attributed to it in Clause 7.4 of this Agreement;
	 
	 	 	“Laws” means any law, statute, order, code, ordinance, regulation, rule, policy, guidance and
interpretation of the law or administrative practice of any Governmental Entity;
	 
	 	 	“Lease Back” means the agreement of even date herewith for the lease of the Premises by Highbridge
to Atmel effective as of the Closing Date;
	 
	 	 	“Long Stop Date” means 31 May 2008;
	 
	 	 	“Losses” means claims, losses, damages, liabilities and reasonable costs and expenses but
excluding in all cases punitive, incidental, special losses or damages and losses or damages
related to or arising from any loss of profits, opportunity costs, delay, or change in valuation
of any real property or other asset;
	 
	 	 	“Net Amount” shall have the meaning attributed to it in Clause 16.11 of this Agreement;
	 
	 	 	“Overrun” means that the TSMC Tools or the Atmel Tools remain on the Premises after the Tool
Removal Completion Date;
	 
	 	 	“Oversight and Monitoring Services” means the services comprising the project management,
oversight and monitoring of (i) the implementation of the Pre-Removal Procedures; (ii) the
carrying out of Removal; (iii) removal of those bulk chemicals and gases which would otherwise
have been used in the manufacture of semiconductor wafers or has been used by Atmel and/or the
Atmel Invitees in the decommissioning process; and (iv) the purging of all supply lines from
storage locations to “point of use”;
	 
	 	 	“Parties” means, collectively, Atmel, TSMC, Highbridge, the Atmel Guarantor and the Highbridge
Guarantor;
	 
	 	 	“Party” means, individually, Atmel, TSMC, Highbridge, the Atmel Guarantor or the Highbridge
Guarantor, as the case may be;
	 
	 	 	“Pre-Removal Procedures” means the operations and procedures in relation to the operation, testing,
shutdown, disconnection, and line-capping of all TSMC Tools and Atmel Tools;

4

 

	 	 	“Premises” means leasehold premises known as Land at Middle Engine Lane, Hadrian Business Park,
Silverlink, Wallsend, Newcastle Upon Tyne, NE28 9NZ registered at the Land Registry under title
numbers TY319516 and TY319520, including all buildings and erections thereon, but excluding the
plot of land located near the parking area to the office building which is subject to the contract
dated 15 November 2006 among (i) Atmel, (ii) Sandalbeech Limited, and (iii) Honda Motor Europe
Limited;
	 
	 	 	“Procedures” means, collectively, the Pre-Removal Procedures, the Atmel Tool Removal and the TSMC
Tool Removal;
	 
	 	 	“Property Agreement” means the agreement of even date herewith for the sale and purchase of the
Premises to be entered into between Atmel, Atmel Guarantor, Highbridge and the Highbridge
Guarantor;
	 
	 	 	“Related Agreements” means all the agreements between or among any of the Parties made in
connection with or contemplation of this Agreement and the Transaction contemplated in this
Agreement, including without limitation the Asset Agreement, the Property Agreement, the Escrow
Agreement, the Lease Back, the Conditional Option and the Share Sale Agreement;
	 
	 	 	“Remedial Action” means remediation work that is requisite under the Environmental Laws;
	 
	 	 	“Remediation Plan” shall have the meaning attributed to it in Clause 7.4 of this Agreement;
	 
	 	 	“Removal” means the removal of all Tools from the Premises before the Long Stop Date or the
expiration of the Extension Period as applicable, which shall include the TSMC Tool Removal and
Atmel Tool Removal;
	 
	 	 	“Reportable Claim” shall have the meaning attributed to it in Clause 7.1 of this Agreement;
	 
	 	 	“Reportable Event” shall have the meaning attributed to it in Clause 7.1 of this Agreement;
	 
	 	 	“Reporting Notice” shall have the meaning attributed to it in Clause 7.1 of this Agreement;
	 
	 	 	“Revised Environmental Condition” means the presence of Hazardous Materials in soil and/or
groundwater at or under the Premises as identified in the Revised Environmental Investigation;
	 
	 	 	“Revised Environmental Investigation” means the report of the updated Phase II environmental site
assessment and investigation of the Premises to be commissioned by, and at the cost of, Atmel and
performed by Cundall Johnson and Partners LLP at, or as soon as possible after, the Tool Removal
Completion Date, or in the event of an Overrun, the Long Stop Date, to identify any adverse change
from, and adopting the same assessment methodologies as, the Baseline Environmental Investigation,
including as to whether Atmel could be required to undertake Remedial Action;
	 
	 	 	“Share Sale Agreement” means the agreement of even date for the sale and purchase of the entire
issued share capital in each of Atmel North Tyneside Contractor One Limited

5

 

	 	 	and Atmel North Tyneside Developer One Limited entered into between Atmel and Highbridge;
	 
	 	 	“Tool Removal Completion Date” means 30 April 2008 (or such other date on which the Removal
has been completed);
	 
	 	 	“Tool Removal Start Date” means the earliest date after the Closing Date on which the first
of the TSMC Tools are made available by Atmel for removal from the Premises and in any case
shall be no later than 1 January 2008;
	 
	 	 	“Tools” means the TSMC Tools and Atmel Tools as listed in Schedule 3 attached
hereto;

	 
	 	 	“TSMC Invitees” shall have the meaning attributed to it in Clause 5.2 of this
Agreement;

	 
	 	 	“TSMC Invitees” shall have the meaning attributed to it in Clause 5.2 of this
Agreement;
	 
	 	 	“TSMC Tools” means the tools, accessories, spare parts, and other equipment and assets
located at the Premises which will be purchased by TSMC from Atmel on or following the
Closing Date in accordance with the Asset Agreement;
	 
	 	 	“TSMC Tool Removal” means the removal of all TSMC Tools from the Premises;
	 
	 	 	“Transaction” means the transaction or series of transactions contemplated under this
Agreement and the Related Agreements;
	 
	 	 	“Transfer Regulations” means The Transfer of Undertakings (Protection of Employment)
Regulations 2006; and
	 
	 	 	“UK Tax Paying Company” shall have the meaning attributed to it in Clause 16.11 of this
Agreement.
	 
	2.	 	INTERPRETATION
	 
	2.1	 	In this Agreement:

	 	2.1.1	 	the contents page(s) and clause headings are for convenience only and do not
affect its construction;
	 
	 	2.1.2	 	words denoting the singular include the plural and the other way round;
	 
	 	2.1.3	 	words denoting one gender include each gender and all genders;
	 
	 	2.1.4	 	general words shall not be given a restrictive meaning by reason of their
being preceded or followed by words indicating a particular class or examples of acts,
matters or things; and
	 
	 	2.1.5	 	references to “indemnify” and “indemnifying” any person against any
liability or circumstance include indemnifying that person against all Losses from
time to time directly made, suffered or incurred by that person as a consequence of or
which would not have arisen but for that liability or circumstance, but shall exclude
any and all punitive, incidental, or special losses or damages, or losses or damages
related to or arising from any loss of profits or opportunity, delay, or change in
valuation of any real property or other asset and where any payment to be made under
any indemnity is subject to any tax such payment shall be made on an after tax basis.

6

 

	2.2	 	In this Agreement, unless otherwise specified or the context otherwise requires, a
reference to:

	 	2.2.1	 	any reference to this Agreement (whether or not capitalised) includes the
schedules, exhibits and other attachments to it each of which forms part of this
Agreement for all purposes;
	 
	 	2.2.2	 	a person is to be construed to include a reference to any individual, firm,
partnership, company, corporation, association, organisation or trust (in each case
whether or not having a separate legal personality);
	 
	 	2.2.3	 	a document, instrument or agreement (including, without limitation,
this Agreement) is a reference to any such document, instrument or agreement as
modified, amended, varied, supplemented or novated from time to time;
	 
	 	2.2.4	 	a clause or schedule (whether or not capitalised) is a reference to a clause
of or schedule to this Agreement and a reference to this Agreement includes its
schedules, exhibits and all other attachments hereto;
	 
	 	2.2.5	 	a paragraph is a reference to a paragraph of the schedule in which the
reference appears;
	 
	 	2.2.6	 	any phrase introduced by the term “include”, “including”, “in particular” or
any similar expression will be construed as illustrative and will not limit the sense
of the words preceding or following that term;
	 
	 	2.2.7	 	a provision of any statute, statutory provision, EC directive or other
legislation is to be construed as a reference to such provision as amended or
re-enacted or as its application is modified from time to time (whether before or after
the date of this Agreement) and shall include a reference to any provision of which it
is a re- enactment (whether with or without modification) and to any orders,
regulations, instruments or other subordinate legislation (and relevant codes of
practice) made under the relevant statute or other legislation except to the extent
that any amendment or re-enactment coming into force after the date of this Agreement
would increase or extend the liability of any Party to any other person under this
Agreement; and
	 
	 	2.2.8	 	writing shall include any mode of reproducing words in a legible and permanent
form; and
	 
	 	2.2.9	 	dates and times are references to local dates and times in London, England, UK.

	3.	 	CONDITION

	3.1	 	This Agreement, together with all rights and obligations under it or the enforcement thereof
(with the exception of Clauses 3, and 14 to 18 inclusive which shall have full force and
effect from the date hereof), and completion of all the Related Agreements and the
Transaction, will be conditional upon Atmel having complied with its procedural obligations to
inform and consult with appropriate representatives of Atmel’s employees in relation to the
impact that the Transaction may have on those employees (the “Condition”).

7

 

	3.2	 	Atmel shall use all reasonable endeavours to satisfy or procure the satisfaction of the
Condition as expeditiously as possible following the date hereof.
	 
	3.3	 	Within two Business Days following the satisfaction of the Condition, Atmel shall serve
notice on all the Parties advising that the Condition has been satisfied (the “Condition
Satisfaction Notice”). On the date two Business Days following service of such notice on all
Parties, this Agreement and the Related Agreements, together with all rights and obligations
under them or the enforcement thereof, shall become unconditional and have full force and
effect (the “Closing”). With respect to Highbridge, Atmel shall procure, before the Closing,
(a) the removal of entry 6 and 8 subsisting on the Charges Register of title number TY319520
as at 21 August 2007, and (b) letter of reliance from Cundall Johnson and Partners LLP
confirming professional indemnity coverage of £5,000,000. At the Closing, (i) the Purchase
Price under the Asset Agreement shall be available for release from escrow pursuant to the
terms thereof and the Escrow Agreement, and (ii) the Property Agreement shall be completed,
including (without limitation) payment of the purchase price to Atmel pursuant to the terms
thereof.
	 
	4.	 	ATMEL’S OBLIGATIONS TO HIGHBRIDGE

	4.1	Atmel undertakes to Highbridge that Atmel will procure at Atmel’s cost (i) the
implementation of the Pre-Removal Procedures; (ii) the carrying out of the Removal; (iii)
removal of those bulk chemicals and gases which would otherwise have been used in the
manufacture of semiconductor wafers or has been used by Atmel and/or the Atmel Invitees in the
decommissioning process; (iv) the purging of all supply lines from storage locations to “point
of use”; and (iv) the delivery by the Consultant of the Oversight and Monitoring Services in
accordance with the Consultant Contract, in all cases:
	 
	 	4.1.1	 	in compliance with all statutory requirements, including the CDM Regulations;
	 
	 	4.1.2	 	in a good and workmanlike, proper and professional manner;
	 
	 	4.1.3	 	so that Atmel delivers the environmental objectives referred to in Clause 6
including promptly and adequately cleaning up any spillages at the Premises as soon as
reasonably practicable after their occurrence; and
	 
	 	4.1.4	 	so as to avoid any environmental impact and to minimise any damage to the
Premises other than as contemplated under Clause 6.1.5.

	4.2	 	Provided that Atmel complies with the relevant instructions and recommendations of the
Consultant, Highbridge acknowledges and agrees that residual chemicals within plumbing,
ductwork and drains will remain after purging and equipment decommissioning and that Atmel has
no responsibility or liability for such residual contamination whatsoever.
	 
	5.	 	PRE-REMOVAL PROCEDURES
	 
	5.1	 	Without prejudice to the generality of Clause 4 as to Atmel’s obligations to Highbridge,
Atmel shall be responsible for the Pre-Removal Procedures, and TSMC shall be responsible for
removing the TSMC Tools from the Premises, both as set forth in Clause 8.2 of the Asset
Agreement.
	 
	5.2	 	Subject to the terms of the Lease Back and this Agreement, Highbridge hereby acknowledges
and agrees that (i) Atmel shall he permitted to carry out Pre-Removal Procedures and Removal
at the Premises, and (ii) TSMC shall be permitted to carry out the

8

 

	 	 	TSMC Tool Removal, in each case until the Long Stop Date or to expiry of the Extension
Period if applicable. For the purposes of carrying out TSMC Tool Removal and inspection,
Highbridge and Atmel shall provide to TSMC, its employees, contractors, consultants and
invitees (the “TSMC Invitees”), at no charge to TSMC up to and including the Long Stop
Date, or the expiration of the Extension Period if applicable, reasonable access to and
space within the Premises, as well as office space for housing the TSMC Invitees, which is
estimated to require approximately 10,000 square feet. TSMC shall be subject to and shall
comply with all security, access, environmental, health, safety and emergency response
procedures of Atmel existing as of the date of this Agreement.
	 
	5.3	 	The Parties agree that Atmel and Highbridge shall jointly engage, at Atmel’s cost, the
Consultant to provide Oversight and Monitoring Services until the Long Stop Date or the
expiration of the Extension Period if applicable. Atmel shall negotiate and finalise the
Consultant Contract, which shall be approved by Highbridge (such approval not to be
unreasonably withheld or delayed), and pursuant to the terms thereof, shall, inter alia,
require that the Consultant comply with applicable statutory obligations under the
Construction (Design and Management) Regulations 2007 (the “CDM Regulations”).
	 
	5.4	 	Atmel and Highbridge may consult with TSMC as to the terms of the Consultant Contract for the
Consultant and the Oversight and Monitoring Services.
	 
	5.5	 	At all times prior to the Long Stop Date, Atmel shall ensure that the Consultant receives
reasonable comments made by Highbridge or TSMC in connection with any aspect of the Oversight
and Monitoring Services, and shall request that the Consultant gives reasonable consideration
to such comments and feedback in the course of the execution of the Oversight and Monitoring
Services.
	 
	6.	 	ENVIRONMENTAL OBJECTIVE
	 
	6.1	 	The Parties agree that the objective of the Oversight and Monitoring Services is to
ensure that during the carrying out of (a) the Pre-Removal Procedures and (b) the Removal:

	 	6.1.1	 	there are or will be procedures in place to minimise the likelihood of any
release, spillage or escape of Hazardous Materials to air or to soil and groundwater
and that compliance with these procedures is overseen and monitored;
	 
	 	6.1.2	 	such procedures are performed in compliance with applicable
statutory obligations under the Laws of England and Wales, including the CDM
Regulations;
	 
	 	6.1.3	 	the Pre-Removal Procedures and Removal are conducted in a safe manner and in
accordance with the requirements of all Laws, including Environmental Laws and in
accordance with any applicable requirements of any Governmental Entity;
	 
	 	6.1.4	 	any release, spillage or escape of Hazardous Materials to air is, as
necessary, immediately addressed in accordance with appropriate emergency response
procedures in place at the Premises as at the date hereof;
	 
	 	6.1.5	 	no extraordinary damage occurs to the fab portion of the Premises where
manufacturing of semiconductors takes place and no building damage occurs to the
offices at the Premises as a result of the Procedures (other than reasonable wear and
tear); and

9

 

	 	6.1.6	 	no additional contamination of soil and/or groundwater is created or, in
the event of an incident resulting in the same that remedial works are implemented as
soon as practicable to restore the Premises to substantially the same state as the
Baseline Environmental Condition such that no Remedial Action is required.

	6.2	 	The Parties agree that the Baseline Environmental Condition and the
Revised Environmental Investigation are deemed to be final, conclusive and binding on the
Parties and that the Revised Environmental Investigation shall, as between and among them, be
final, conclusive and binding upon the Parties as to any adverse changes to soil and
groundwater at or under the Premises as between the Baseline Environmental Condition and the
Revised Environmental Condition.
	 
	6.3	 	Atmel shall procure production and delivery as soon as is reasonably practicable after the
Tool Removal Completion Date, or in the event of an Overrun, the Long Stop Date of:

	 	6.3.1	 	to both TSMC and Highbridge, the Revised Environmental Investigation; and
	 
	 	6.3.2	 	to Highbridge, a letter of reliance from Cundall Johnson and Partners LLP
confirming professional indemnity coverage of £5,000,000.

	7.	 	ATMEL ENVIRONMENTAL WORKS AND INDEMNITY
	 
	7.1	 	The Parties agree that if, notwithstanding the procedures in place, there is a release,
spillage or escape of Hazardous Materials during the Pre-Removal Procedures and/or Removal or
other environmental condition or other circumstances before the Long Stop Date or the
expiration of the Extension Period if applicable that may result in or give rise to a
potential or actual Loss (a “Reportable Event”):

	 	7.1.1	 	Highbridge shall provide Atmel and the Atmel Invitees such access to the
Premises, and extend such other reasonable cooperation (such cooperation to be
provided at Atmel’s cost and expense and at Atmel’s request) to undertake any works
and other action to restore the condition of the Premises to the Baseline
Environmental Condition;
	 
	 	7.1.2	 	As soon as is practicable after Highbridge or TSMC becomes aware of a
Reportable Event, such Party shall give prompt notice of such Reportable Event (a
“Reporting Notice”) to Atmel.A Reporting Notice must describe the Reportable Event in
reasonable detail and must indicate the amount (estimated, if necessary and to the
extent feasible) of the Loss that has been or may be suffered by a Party;
	 
	 	7.1.3	 	Atmel has the right to assume and control the defence of any claim that may
arise from or relate to the Reportable Event (a “Reportable Claim”) with counsel
selected by the Atmel Guarantor. While Atmel has assumed the defence of a Reportable
Claim as provided in this Clause 7.1.3, Atmel shall not be liable for any legal costs
and expenses subsequently incurred by the other Parties (other than the Atmel
Guarantor) in connection with the defence of the Reportable Claim save for any
reasonable legal costs and expenses incurred because other Parties have been joined in
the Reportable Claim as a co-defendant and a named party before Atmel assumes and
takes control of the defence. Highbridge or TSMC, as the case may be, has the right
to participate in (but not control), at its own expense, the defence of any Reportable
Claim which Atmel has assumed and taken control as provided herein and Atmel shall
keep Highbridge and TSMC

10

 

	 	 	 	fully informed of the progress of the Reportable Claim and shall consider the
reasonable requests of Highbridge or TSMC in respect of the Reportable Claim; and
	 
	 	7.1.4	 	Highbridge and TSMC shall, promptly after giving a Reporting Notice at
Atmel’s cost and expense, use all reasonable endeavours to take, or cause to be taken,
all actions, and to do, or cause to be done, and to assist and cooperate with Atmel in
connection with any Reportable Claim.

	7.2	 	Subject to the other terms of this Agreement, Atmel agrees to indemnify Highbridge against
all Losses actually incurred or suffered by Highbridge (i) as a result of any adverse change
from the Baseline Environmental Condition identified in the Revised
Environmental Investigation requiring Remedial Action, and (ii) in relation to any release,
spillage or escape of Hazardous Materials on the Premises during the Procedures.
	 
	7.3	 	In the event that an adverse change is identified under Clause 7.2 above, Atmel shall be
entitled, at its own cost and expense, to undertake as soon as is reasonably practicable, any
works and take other action to restore the condition of the Premises to the Baseline
Environmental Condition and/or remediate any such release, spillage or escape in an
appropriate manner in accordance with good industry practice and shall promptly give written
notice to Highbridge that it has had to commence such works and, in any event no later than
seven Business Days of such commencement If such works and other activities on the Premises
(including but not limited to Removal) result in a delay in Atmel or TSMC vacating the
Premises on or before the Long Stop Date, upon request by Atmel, from the Long Stop Date,
Highbridge will grant Atmel and those properly authorised by Atmel (including without
prejudice to the foregoing, TSMC) licence to enter the Premises for a period of 3 months from
the Long Stop Date (the “Extension Period”). During the Extension Period, Atmel shall as
soon as is reasonably practicable after the Long Stop Date complete all works and take other
action, at its own cost and expense, through a contractor or otherwise (with suitable
warranties and professional indemnity coverage being obtained, from any contractor appointed,
for Highbridge and the Highbridge Lender), to take Remedial Action, facilitate the Removal and
perform any and all other acts to satisfy its obligations under this Clause 6 (such works and
activities by Atmel or its contractors collectively referred to herein as the “Atmel Works”).
	 
	7.4	 	If at any time it is determined that the Atmel Works shall take longer than the Extension
Period, Atmel shall notify Highbridge as soon as is reasonably practicable and (i)
Highbridge and Atmel (both acting reasonably and without delay) shall jointly instruct the
Consultant to identify the environmental condition or conditions to be rectified and develop a
plan to implement Remedial Action as required under this Clause 7 (the “Remediation Plan”);
(ii) Highbridge shall cause a contractor of its choice to provide an estimate of the cost and
time within which that contractor can reasonably complete the Remediation Plan (the
“Highbridge Plan”) and inform Atmel and its contractor of such estimated cost and time; and
(iii) Atmel or a contractor of its choice shall provide an estimate of the cost and time with
which Atmel or its contractor can complete the Remediation Plan (the “Atmel Plan”) and inform
Highbridge of such estimated cost and time.
	 
	7.5	 	If the Highbridge Plan can be performed at a comparable or lower cost and in a lesser time
than the Atmel Plan, Highbridge shall have the right to (a) engage a contractor (with suitable
warranties and professional indemnity coverage being obtained for Atmel), at Atmel’s cost, to
undertake the works and take such actions as described in the Remediation

11

 

	 	 	Plan, (b) terminate the right of access (which shall result in a concurrent termination of
TSMC’s right to access the Premises), and (c) begin demolishing, redevelopment and other
related work; provided that if the Atmel Plan can be performed at a comparable or lower
cost and in a lesser time than the Highbridge Plan, then (x) Highbridge shall not undertake
the works set forth in the Remediation Plan, (y) Atmel shall have the right to undertake
such works and take such actions set forth in the Remediation Plan (with suitable
warranties and professional indemnity coverage being obtained for Highbridge and the
Highbridge Lender), and (z) Highbridge will grant Atmel and those properly authorised by
Atmel (including without prejudice to the foregoing TSMC) licence to enter the Premises for
the period up to and ending on the date that the works and actions set forth in the
Remediation Plan are completed. If the Highbridge Plan is to be performed by Highbridge
pursuant to the foregoing sub-Clause 7.5(a), Atmel shall have the right to monitor the
progress of and supervise and otherwise propose direction as to the performance of the
Remediation Plan in accordance with the Highbridge Plan. If the Atmel Plan is to be
performed by Atmel pursuant to the foregoing sub-Clause 7.5(y), Highbridge shall have the
right to monitor the progress of and supervise and otherwise propose direction as to the
performance of the Remediation Plan in accordance with the Atmel Plan.
	 
	7.6	 	The Parties hereby agree that any Extension Period or right of access to the Premises granted
by Highbridge under this Clause 7 shall be on such terms as exclude the security of tenure
provisions of the Landlord and Tenant Act 1954).
	 
	7.7	 	At anytime after the Tool Removal Completion Date, and in the event of an Overrun anytime
after the Long Stop Date, Highbridge shall be entitled, at its own cost, to engage Cundall
Johnson and Partners LLP to conduct another Phase II environmental site assessment and
investigation of the Premises.
	 
	7.8	 	Notwithstanding the foregoing, under either the Highbridge Plan or the Atmel Plan, at all
times before the Long Stop Date or the expiration of the Extension Period or the completion of
the Remediation Plan, if applicable, TSMC is to be afforded reasonable rights of access to the
Premises in order to carry out the TSMC Tool Removal.
	 
	7.9	 	Notwithstanding anything to the contrary herein Atmel shall not be liable for and shall have
no obligation to indemnify or pay for any Losses incurred or suffered by Highbridge as a
result of and to the extent of:

	 	7.9.1	 	any environmental condition that is not required or could not have been
required by a Governmental Entity, either as at the date hereof or at any time prior
to the Long Stop Date, to be investigated, removed or otherwise remedied pursuant to
any Environmental Law not in force and applicable as at the Long Stop Date; and
	 
	 	7.9.2	 	any environmental condition to the extent exacerbated or otherwise worsened
by any of Highbridge or the Highbridge Invitees.

	8.	 	TSMC INDEMNITY
	 
	 	 	Subject to the other terms of this Agreement, TSMC agrees to indemnify Atmel against all
Losses actually incurred or suffered by Atmel in relation to any release, spillage or
escape of Hazardous Materials to soil and/or groundwater and/or on the Premises where such
release, spillage or escape arises or results from any action or omission by TSMC or any of
the TSMC Invitees related to or in connection with TSMC Tool Removal, including any Losses
that Atmel is liable to pay to Highbridge pursuant to sub-Clause 7.2 above.

12

 

	9.	 	HIGHBRIDGE RESPONSIBILITY AND INDEMNITY
	 
	9.1	 	Subject to the other terms of this Agreement, Highbridge accepts that, as between or among
the Parties, as from the date of the Revised Environmental Investigation, it has all
responsibility and liability for Hazardous Materials at, in or under the Premises.
	 
	9.2	 	Subject to the other terms of this Agreement, Highbridge agrees to indemnify Atmel against
any and all Losses actually incurred or suffered by Atmel as a result of (i) Hazardous
Materials at any time at in or under the Premises, and (ii) any works performed and all other
action taken by Highbridge or any of the Highbridge Invitees including but not limited to
demolition, redevelopment and other activities in on or around the Premises, in both cases (x)
as from the date of the Revised Environmental Investigation and (y) excluding anything for
which Atmel shall indemnify under Clause 7.
	 
	10.	 	FINAL TOOL REMOVAL
	 
	10.1	 	TSMC undertakes to Highbridge to procure the completion of the TSMC Tool Removal as soon as
reasonably practicable, but in any event by the Long Stop Date.
	 
	10.2	 	Atmel undertakes to Highbridge to procure completion of the Removal as soon as reasonably
practicable, but in any event by the Long Stop Date.
	 
	11.	 	HIGHBRIDGE RELEASE
	 
	 	 	Highbridge agrees that without prejudice to any rights that have already arisen
thereunder, the indemnity in Clause 7.2 above shall terminate to the extent that (i) the
Revised Environmental Investigation confirms that there have been no adverse changes since
the Baseline Environmental Investigation or (ii) with respect to any release, spillage or
escape of Hazardous Materials on the Premises, the works and actions set forth in the
Remediation Plan shall be performed in accordance with Clauses 7.4 and 7.5 above.
	 
	12.	 	EMPLOYEES
	 
	12.1	 	It is acknowledged by each of the Parties that the Transfer Regulations should not apply to
this Agreement or any of the transactions contemplated in it or the Related Agreements and
that accordingly no Employees will transfer to Highbridge or TSMC as a result of the Closing
or any of the Related Agreements.
	 
	12.2	 	Notwithstanding the acknowledgement set forth in Clause 12,1, Atmel shall indemnify each of
Highbridge and TSMC from and against any Losses that it actually incurs or suffers by reason
of any claim, action or proceeding made by any Employee or person who is or has been, or
purports to be or have been, employed by Atmel under the Transfer Regulations in connection
with this Transaction;
	 
	12.3	 	Each of TSMC and Highbridge shall as soon as reasonably practicable notify Atmel if it
receives or becomes aware of any claim, action or demand against it, made or threatened by any
person in respect of which Atmel is or may be liable for Losses under Clause 12.2 (each, an
“Employment Related Claim”). Atmel may at its election, and at its own cost and expense
undertake and conduct the defence of such Employment Related Claim with legal counsel selected
by Atmel. Each of TSMC and Highbridge shall be entitled to participate in at its own cost
and expense (including legal counsel’s fees and costs of investigation), but not to determine,
control or conduct, the defence of such Employment Related Claim. If time has assumed the
defence of an Employment Related Claim, Atmel

13

 

	 	 	shall not be liable for any costs and expenses (including legal counsel’s fees and costs of
investigation) subsequently incurred by TSMC or Highbridge in connection with the defence
of the Employment Related Claim. TSMC or Highbridge shall not agree to any settlement or
compromise of, or an entry of any judgment arising from, any such Employment Related Claim
except with the prior written consent of Atmel, even if such settlement or compromise given
by the claimant or the plaintiff to Atmel constitutes a release from liability in respect
of such Employment Related Claim.
	 
	12.4	 	If Atmel does not take conduct of the defence of any Employment Related Claim pursuant to
Clause 12.3, then Atmel shall give to each of Highbridge and TSMC all reasonable cooperation,
assistance and information which may be reasonably required by either of them in relation to
such Employment Related Claim; and
	 
	12.5	 	If any contract of employment of any Employee or former Employee has effect, or is alleged to
have effect, following Closing as if originally made between Highbridge or TSMC and that
Employee, Highbridge and/or TSMC may terminate the employment of such person.
	 
	12.6	 	Atmel shall indemnify each of Highbridge and/or TSMC against all Losses actually incurred by
Highbridge or TSMC, as applicable, arising out of the termination of employment of any person
by Highbridge and/or TSMC (as the case may be) in accordance with Clause 12.5 and against any
sum payable to or in respect of that person in connection with the period up to the date of
termination of employment.
	 
	12.7	 	Atmel may, by written request, control and take over conduct of all proceedings and/or
negotiations of whatsoever nature arising in connection with any Employment Related Claim
which is subject to this indemnity provided that Atmel shall:

	 	12.7.1	 	upon request provide all available information and copies of all correspondence and
documentation relating to such Employment Related Claim; and
	 
	 	12.7.2	 	inform Highbridge and TSMC as to the status of any such Employment Related Claim,
including but not limited to matters regarding avoiding, disputing, resisting,
appealing, compromising or defending the claim, and take reasonable account of their
representations.

	13.	 	GUARANTEES
	 
	13.1	 	In consideration of Atmel entering into this Agreement at the request of the Atmel Guarantor,
the Atmel Guarantor guarantees to each of TSMC and Highbridge the discharge by Atmel of its
obligations in full to TSMC and Highbridge, respectively, under this Agreement and any Related
Agreement, and promises to pay each sum which Atmel is liable to pay to TSMC and Highbridge,
respectively, under this Agreement if Atmel fails to do so.
	 
	13.2	 	In consideration of Highbridge entering into this Agreement at the request of the Highbridge
Guarantor, the Highbridge Guarantor guarantees to each of TSMC and Atmel the discharge by
Highbridge of its obligations in full to TSMC and Atmel, respectively, under this Agreement
and any Related Agreement, and promises to pay each sum which Highbridge is liable to pay to
TSMC and Atmel, respectively, under this Agreement if Highbridge fails to do so.

14

 

	14.	 	LIMITATION OF LIABILITY
	 
	14.1	 	TSMC agrees that the cumulative, aggregate, joint liability of Atmel
and the Atmel Guarantor (for the avoidance of doubt the cumulative
and aggregate, liability of Atmel plus the cumulative and aggregate
liability of the Atmel Guarantor) for all claims of whatever nature
under or in connection with this Agreement or any of the Transactions
shall be subject to the limitations set out in the Asset Agreement.
	 
	14.2	 	Atmel agrees that the cumulative, aggregate liability of TSMC for all
claims of whatever nature under or in connection with this Agreement
or any of the Transactions shall be subject to the limitations set
out in the Asset Agreement.
	 
	14.3	 	Highbridge agrees that the cumulative, aggregate, joint liability of
Atmel and the Atmel Guarantor (for the avoidance of doubt the
cumulative and aggregate liability of Atmel plus the cumulative and
aggregate liability of the Atmel Guarantor) for all claims of
whatever nature under or in connection with this Agreement or any of
the Transactions shall be subject to the limitations set out in the
Property Agreement.
	 
	14.4	 	Atmel agrees that the cumulative, aggregate, joint liability of
Highbridge and the Highbridge Guarantor (for the avoidance of doubt
the cumulative and aggregate liability of Highbridge plus the
cumulative and aggregate liability of the Highbridge Guarantor) for
all claims of whatever nature under or in connection with this
Agreement or any of the Transactions shall be subject to the
limitations set out in the Property Agreement.
	 
	15.	 	REMEDIES
	 
	15.1	 	Each of the Parties’ rights and remedies in respect of any claims
under this Agreement shall be limited only to damages for breach of
contract and as set forth in Clause 14.
	 
	15.2	 	The Parties shall not be entitled to (i) rescind or terminate this
Agreement, the Related Agreements or any other document referred to
in this Agreement or in the Related Agreements, (ii) void or
otherwise challenge consummation of the Transaction or any portion
thereof, or (iii) recover damages in tort.
	 
	15.3	 	Nothing in this Agreement shall operate to reduce any Party’s common
law duty to mitigate any loss giving rise to any claim under this
Agreement and for the avoidance of doubt each Party shall be under a
duty so to mitigate.
	 
	15.4	 	Each Party agrees to waive any right or remedy which that Party may
have against any employee, consultant, representative, advisor or
agent of another Party in connection with any representation,
warranty, agreement or statement by any such person in relation to
the Transaction, this Agreement, the Related Agreements and any other
document to be delivered or executed in connection therewith,
provided that such waiver shall not affect its rights against any
Party under this Agreement.
	 
	16.	 	OTHER PROVISIONS
	 
	16.1	 	Costs
	 
	 	 	Except as otherwise stated in this Agreement and any documents
referred to in it, each of the Parties shall pay its own costs and
expenses (including legal fees and VAT (if any)) incurred by it in
connection with the negotiation, preparation and execution of this
Agreement and all other documents referred to in it and the
completion of the Transaction.

15

 

	16.2	 	Variation
	 
	 	 	No variation of this Agreement shall be effective unless made in
writing (which for this purpose shall not include e-mail or other
electronic communication) and signed by or on behalf of each of the
Parties.
	 
	16.3	 	No special loss
	 
	 	 	Atmel, the Atmel Guarantor or TSMC shall have no liability under any
claim under this Agreement to the extent that such claim constitutes
punitive, incidental, special loss or damages, or losses or damages
related to or arising from any loss of profits, opportunity costs,
delay or change in valuation of any real property or other asset.
	 
	16.4	 	Waivers and remedies
	 
	 	 	No failure or delay to exercise, or other relaxation or indulgence
granted in relation to, any power, right or remedy under this
Agreement shall operate as a waiver of it or impair or prejudice it
nor shall any single or partial exercise or waiver of any power,
right or remedy preclude its further exercise or the exercise of any
other power, right or remedy.
	 
	16.5	 	Severability
	 
	 	 	Each of the provisions of this Agreement is distinct and severable
from the others and if at any time one or more of such provisions is
or becomes invalid, unlawful or unenforceable (whether wholly or to
any extent), the validity, lawfulness and enforceability of the
remaining provisions (or the same provision to any other extent)
shall not in any way be affected or impaired.
	 
	16.6	 	Successors
	 
	 	 	This Agreement shall be binding on and enure to the benefit of each
Party and its lawful successors.
	 
	16.7	 	Assignment
	 
	 	 	None of the Parties shall be entitled to assign or transfer any of
its rights or benefits under this Agreement.
	 
	16.8	 	Third party rights
	 
	 	 	Nothing in this Agreement confers any rights on any person under the
Contracts (Rights of Third Parties) Act 1999.
	 
	16.9	 	Counterparts
	 
	 	 	This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original and which shall together
constitute one and the same Agreement.
	 
	16.10	 	Announcements
	 
	 	 	No Party shall release any announcement or despatch any announcement
or circular, relating to this Agreement unless the form and content
of such announcement or circular have been submitted to, and or
agreed by, the other Parties. Nothing in this Clause 15.11 shall
prohibit any Party from making any announcement, consulting with any
person

16

 

	 	 	(including any employees) or despatching any circular as required by Law or the rules of any
listing authority or recognised investment exchange or any other regulatory body.
	 
	16.11	 	Deductions and Withholdings

	 	16.11.1	 	Except as expressly provided in this Agreement, every payment payable by any Party,
the “payer”, to another Party, the “payee”, under this Agreement shall be made in full
without any set-off or counterclaim howsoever arising and shall be free and clear of,
and without deduction of, or withholding for or on account of, any amount, save only
as may be required by Law.
	 
	 	16.11.2	 	For the purposes of this Clause 16.11:
	 
	 	 	 	“UK Tax Paying Company” shall mean, a company incorporated in England and Wales,
and resident for tax purposes, carrying on business and subject to corporation
tax, in the United Kingdom of Great Britain & Northern Ireland; and
	 
	 	 	 	the payer shall be entitled in its absolute discretion, acting reasonably:

	 	(A)	 	to assess whether or not any deductions or withholdings are required
by law and whether or not such deductions or withholdings would have
been required had the payee been a UK Tax Paying Company;
	 
	 	(B)	 	to assess the extent to which an amount paid or due to the payee under
this Agreement would have been subject to UK corporation tax had the
payee been a UK Tax Paying Company; and

	 	 	 	in both cases, to treat the payee accordingly.
	 
	 	16.11.3	 	If, subject to this Clause 16.11, any deductions or withholdings would be required
by Law to be made from any sums payable by the payer to the payee, such payer shall be
obliged to pay the payee such amount as would, after the deduction or withholding has
been made, leave the payee with the same amount as it would have been entitled to
receive in the absence of such requirement to make a deduction or withholding, unless
the payer would not have had to make such deductions or withholdings had the payee
been a UK Tax Paying Company.
	 
	 	16.11.4	 	If the payer would be required by law to make a deduction or withholding as is
referred to in this Clause 16.11, the payer shall:

	 	(A)	 	make such deduction or withholding;
	 
	 	(B)	 	account for the full amount deducted or withheld to the
relevant authority in accordance with applicable law; and
	 
	 	(C)	 	provide to the payee the original, or a certified copy, of
a receipt or other documentation evidencing the above.

	16.11.5	 	If, subject to this Clause 16.11, any amount paid or due to the payee under this
Agreement would be a taxable receipt of the payee, then the amount so paid or due (the
“Net Amount”) shall be increased to an amount which, after subtraction of the amount
of any tax on such increased amount which arises, or would but for the availability of
any relief arise, shall equal the Net Amount provided that if any payment is initially
made on the basis that the amount is not taxable in the hands

17

 

	 	 	 	of the payee and it is subsequently determined that it is, or vice versa,
appropriate adjustments shall be made between the payee and the payer and
provided further that the amount paid or due shall not be increased to
the extent that such increase would not have been necessary had the payee
been a UK Tax Paying Company.

	16.12	 	Further assurance
	 
	 	 	Each Party shall, at its own expense, do, execute and perform all further acts, deeds,
documents and things as may be reasonably requested from time to time in order to
implement the Transaction contemplated by this Agreement and the Related Agreements.
	 
	16.13	 	Entire Agreement

	 	16.13.1	 	As between Atmel, TSMC and the Atmel Guarantor this Agreement together with the
Asset Agreement and any documents referred to in those agreements (but excluding
the Property Agreement, the Lease Back, the Conditional Option and any other
agreement to which TSMC is not a party) contain the entire agreement in relation to
the matters contemplated in those agreements and supersede any previous agreements
between or among the Parties in relation to such matters.
	 
	 	16.13.2	 	As between Atmel, Highbridge, the Highbridge Guarantor and the Atmel Guarantor
this Agreement together with the Property Agreement, the Lease Back, the
Conditional Option and the Share Sale Agreement and any documents referred to in
those agreements (but excluding the Asset Agreement and any other agreement to
which Highbridge is not a party) contain the entire agreement in relation to the
matters contemplated in those agreements and supersede any previous agreements
between or among the Parties in relation to such matters.
	 
	 	16.13.3	 	Each of the Parties acknowledges that in entering into this Agreement it has not
relied on any representation, warranty or undertaking not set out in this Agreement
or any of the Related Agreements (as the case may be) and that (in the absence of
fraud or wilful misconduct by the Party giving such representation, warranty or
undertaking) it will not have any right or remedy arising out of any such
representation, warranty or undertaking.

	17.	 	NOTICES
	 
	17.1	 	Each Party may give any notice or other communication under or in connection with this
Agreement by letter, facsimile transmission or electronic mail addressed to the other Party.
The address for service of each Party shall be the
address set forth in Clause 17.3 or such other address for service as the addressee may
from time to time notify to the other Party for the purposes of this Clause.
	 
	17.2	 	Any such communication will be deemed to be served:

	 	17.2.1	 	if personally delivered, at the time of delivery and, in proving service, it
shall be sufficient to produce a receipt for the notice signed by or on behalf of
the addressee;
	 
	 	17.2.2	 	if by letter, at noon on the tenth Business Day after such letter was posted (or,
in the case of airmail, five Business Days after such letter was posted) and, in
proving service, it shall be sufficient to prove that the letter was properly
stamped first class (or airmail), addressed and delivered to the postal
authorities;

18

 

	 	17.2.3	 	if by overnight courier (such as Federal Express or DHL), on the
third Business Day after such courier was dispatched, and in
proving service, it shall be sufficient to produce a tracking
number or a receipt confirmation indicating that the courier was
dispatched and received by the recipient;
	 
	 	17.2.4	 	if by facsimile transmission, at noon on the Business Day after the
day of transmission and, in proving service, it shall be sufficient
to produce a transmission report from the sender’s facsimile
machine indicating that the facsimile was sent in its entirety to
the recipient’s facsimile number; and
	 
	 	17.2.5	 	if by electronic mail, at noon on the Business Day after such
communication was sent and, in proving service, it shall be
sufficient to produce a computer print out indicating that the
message was sent to the recipient’s electronic mail address as set
forth in Clause 16.3.

	17.3	 	Details of each Party for service of notice are as follows:

	 	 	 
	Name:

	 	Atmel North Tyneside Limited (Atmel)
	Address:

	 	c/o Atmel Corporation
	 

	 	2325 Orchard Parkway
	 

	 	San Jose, California 95131
	 

	 	USA
	 
	 	 
	Fax no:

	 	+1 408 436 4111
	Electronic mail address:

	 	preutens@atmel.com and
	 

	 	nyamaguchi@atmel.com
	Tel no:

	 	+1 408 441 0311
	Attention:

	 	Chief Legal Officer
	 
	 	 
	Name:

	 	Taiwan Semiconductor Manufacturing Company
	Address:

	 	Limited (TSMC)
	 

	 	8 Li-Hsin 6 Road
	 

	 	Hsinchu Science Park
	 

	 	Hsinchu, Taiwan ROC
	 
	 	 
	Fax no:

	 	+886-3-567-8689
	Electronic mail address:

	 	Dick Thurston@tsmc.com
	Tel no:

	 	+886-3-568-2002
	Attention:

	 	Office of the General Counsel
	 
	 	 
	Name:

	 	Highbridge Business Park Limited (Highbridge)
	Address:

	 	131 Edgware Road,
	 

	 	London W2 2AP
	 

	 	England, UK
	 
	 	 
	Fax no:

	 	+44 20 7494 9493
	Electronic mail address:

	 	guy@nlf.co.uk
	Tel no:

	 	+44 20 7494 9401
	Attention:

	 	Guy Marsden

19

 

	 	 	 
	Name:

	 	Atmel Corporation (Atmel Guarantor
	Address:

	 	2325 Orchard Parkway
	 

	 	San Jose, California 95131
	 

	 	USA
	 
	 	 
	Fax no:

	 	+1 408 436 4111
	Electronic mail address:

	 	preutens@atmel.com and
	 

	 	nyamaguchi@atmel.com
	Tel no:

	 	+1 408 441 0311
	Attention:

	 	Chief Legal Officer
	 
	 	 
	Name:

	 	Highbridge Properties plc
	Address:

	 	131 Edgware Road,
	 

	 	London W2 2AP
	 

	 	England, UK
	 
	 	 
	Fax no:

	 	44 20 7494 9493
	Electronic mail address:

	 	piet@nlf.co.uk; guy@nlf.co.uk
	Tel no:

	 	+44 20 7494 9401
	Attention:

	 	Piet Pulford or Guy Marsden

	18.	 	LAW AND JURISDICTION
	 
	18.1	 	This Agreement and all disputes or claims arising out of or in
connection with it shall be governed by, and construed in accordance
with, the law of England and Wales.
	 
	18.2	 	Each Party hereby irrevocably submits to the non-exclusive
jurisdiction of the courts of England and Wales in relation to any
claim, dispute or difference concerning this Agreement and any matter
arising therefrom.
	 
	18.3	 	Each of the Parties agrees that, without preventing any other mode of
service, any document in action (without limitation) may be served on
any Party by being delivered to or left for that Party at its address
for service of notices under Clause 17.

20

 

AS WITNESS of which this Agreement has been duly signed on the date written at the beginning of this Agreement.

	 	 	 	 	 	 	 	 	 
	Signed
by Steven Laub

	 	 	)	 	 	 	 	 
	a director or officer duly authorised for

	 	 	)	 	 	 	 	 
	and on behalf of ATMEL NORTH

	 	 	)	 	 	/s/ Steven Laub	 
	TYNESIDE LIMITED

	 	 	)	 	 	Director/Officer
	 	 
	 

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature of witness:
	 	/s/ Walt Lifsey 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name (in BLOCK CAPITALS):
	 	WALT LIFSEY 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed
by Steven Laub

	 	 	)	 	 	 	 	 
	a director or officer duly authorised for

	 	 	)	 	 	 	 	 
	and on behalf of ATMEL

	 	 	)	 	 	/s/ Steven Laub
	CORPORATION

	 	 	)	 	 	Director/Officer
	 	 
	 

	 	 	)	 	 	 	 	 
	Signature of witness:
	 	/s/ Walt Lifsey 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name (in BLOCK CAPITALS):
	 	WALT LIFSEY 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 

[Signature
Page to Tripartite Agreement]

 

 

	 	 	 	 	 	 	 	 	 
	Signed
by C.C. Wei

	 	 	)	 	 	 	 	 
	a director or officer duly authorised for

	 	 	)	 	 	 	 	 
	and on behalf of TAIWAN

	 	 	)	 	 	 	 	 
	SEMICONDUCTOR

	 	 	)	 	 	 	 	 
	MANUFACTURING COMPANY

	 	 	)	 	 	/s/ C.C. Wei	 	 
	LIMITED

	 	 	)	 	 	Officer
	 	 
	 

	 	 	)	 	 	 	 	 

[Signature Page to Tripartite Agreement]

 

 

	 	 	 	 	 	 	 	 	 
	Signed
by Piet Pulford

	 	 	)	 	 	 	 	 
	a director or officer duly authorised for

	 	 	)	 	 	 	 	 
	and
on behalf of HIGHBRIDGE

	 	 	)	 	 	/s/ Piet Pulford	 	 
	BUSINESS PARK LIMITED

	 	 	)	 	 	Director/Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	Signed by Piet Pulford

	 	 	)	 	 	 	 	 
	a director or officer duly authorised for

	 	 	)	 	 	 	 	 
	and on behalf of

	 	 	)	 	 	/s/ Piet Pulford	 	 
	HIGHBRIDGE PROPERTIES PLC

	 	 	)	 	 	Director/Officer	 	 

[Signature Page to Tripartite Agreement]

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