Document:

EX-10.I.O

 

Exhibit 10(i)(O)

Qimonda AG

Confidential Materials Omitted and Filed Separately with the

Securities and Exchange Commission.

Confidential Portions denoted by [***].

Cooperative Joint Venture Contract

for the establishment of

Infineon Technologies Suzbou Co., Ltd.

by and between

Infineon Technologies China Co., Ltd.

and

China-Singapore Suzhou Industrial Park Ventures Co., Ltd.

 

 

TABLE
OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	 	Page	 
	Preliminary Statement	 	 	1	 
	Article 1

	 	Definitions
	 	 	1	 
	Article 2

	 	Parties to Cooperative Company
	 	 	2	 
	Article 3

	 	Establishment of Cooperative Company
	 	 	4	 
	Article 4

	 	Purpose and Scope of Business of Cooperative Company
	 	 	5	 
	Article 5

	 	Total Amount of Investment and Registered Capital
	 	 	6	 
	Article 6

	 	Transfer of Equity
	 	 	8	 
	Article 7

	 	Responsibilities of Parties
	 	 	9	 
	Article 8

	 	Return
	 	 	11	 
	Article 9

	 	License and Service
	 	 	12	 
	Article 10

	 	Board of Directors
	 	 	12	 
	Article 11

	 	Management Organization
	 	 	15	 
	Article 12

	 	Labor Management
	 	 	17	 
	Article 13

	 	Trade Union
	 	 	18	 
	Article 14

	 	Finances, Taxes, Audit and Distribution of Profits
	 	 	18	 
	Article 15

	 	Bank Accounts and Foreign Exchange
	 	 	19	 
	Article 16

	 	Joint Venture Term
	 	 	20	 
	Article 17

	 	Liabilities for Breach of Contract
	 	 	20	 
	Article 18

	 	Termination, Dissolution and Liquidation
	 	 	20	 
	Article 19

	 	Confidentiality
	 	 	23	 
	Article 20

	 	Force Majeure
	 	 	24	 
	Article 21

	 	Applicable Law
	 	 	25	 
	Article 22

	 	Dispute Resolution
	 	 	25	 
	Article 23

	 	Miscellaneous
	 	 	26	 

- i -

 

 

Preliminary Statement

THIS COOPERATIVE JOINT VENTURE CONTRACT (this “Contract”) is entered into this 28th day
of July, 2003 in accordance with the “Law on Sino-foreign Cooperative Joint Ventures of the
People’s Republic of China” and other applicable Chinese laws and regulations by and between
Infineon Technologies China Co., Ltd. (“Party A”), a holding company with limited liability formed
in PRC whose principal office is located at No. 7, Lane 647 Song Tao Road, Zhangjiang Hi-tech
Park, Pudong New District, Shanghai, PRC, and China-Singapore Suzhou Industrial Park Ventures Co.,
Ltd. (“Party B”), a limited liability company duly organized and validly existing under the laws
of China whose principal office is located at 11th Floor International Building, #2 Suhua Road
Suzhou Industrial Park, Jiangsu, PRC.

The Parties hereby agree jointly to establish a sino-foreign cooperative Company (as hereinafter
defined) in Suzhou Industrial Park, Suzhou, Jiangsu Province, the People’s Republic of China on
the terms and conditions set forth below.

Article 1 Definitions

Unless the terms or the context of this Contract otherwise provide, the following terms shall have
the meanings set forth below:

	1.1	 	“Affiliate” of a Party means any corporation, partnership, joint venture or other entity
controlling, controlled by, or under common control with, such Party, excluding the Company.
	 
	1.2	 	“Approval Authority” shall mean the Suzhou Industrial Park Administrative Committee
and any other governmental agencies whose approval may be required by Laws and Regulations
with respect to matters referred to herein.
	 
	1.3	 	“Articles of Association” shall mean the Articles of Association of the Company as
executed by the Parties of even date of this Contract and amended thereby from time to time.
	 
	1.4	 	“Board” or “Board of Directors” shall mean the Board of Directors of the Company.
	 
	1.5	 	“Business License” shall mean the business license to be issued to the Company by the
PRC State Administration for Industry and Commerce through the Suzhou Industrial Park Industry
and Commerce Administration Bureau.
	 
	1.6	 	“Business Registration Authority” shall mean the Suzhou Industrial Park Industry and
Commerce Administration Bureau or its successor in charge of the matters of which it is
currently in charge as referred to herein.
	 
	1.7	 	“Call Option” shall mean the option exercisable by Party A to require Party B to sell all or
part of its equity contribution to the Company to Party A at the same amount invested by Party
B together with any unpaid accrued Return as defined in Article 8, as more particularly
described in Article 6.1.

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	1.8	 	“China” or the “PRC” shall mean the People’s Republic of China.
	 
	1.9	 	“Company” shall mean the cooperative company formed by the Parties pursuant to the
applicable Laws and Regulations of the PRC, as well as this Contract and the Articles of Association.
	 
	1.10	 	“Directors” shall mean the members of the Board of Directors of the Company.
	 
	1.11	 	“Event of Force Majeure” shall mean any unforeseeable and unavoidable event or
circumstance beyond the control of a Party occurring after the execution of this Contract
including, without limitation, epidemic, fire, storm, typhoon, flood, earthquake, explosion,
war and serious strikes or work stoppages, acts of governments and other internationally
recognized events of force majeure which prevents the performance, in whole or in part, of
this Contract by any Party or the Company.
	 
	1.12	 	“Germany” shall mean the Federal Republic of Germany.
	 
	1.13	 	“Joint Venture Term” shall mean the duration of the Company as provided for in
Article 16 hereof.
	 
	1.14	 	“Laws and Regulations” shall mean the officially-published and publicly available
laws, regulations and rules of the PRC, insofar as they apply to Cooperative Joint Ventures
that use investments of the PRC and/or foreign investment.
	 
	1.15	 	“Parties” shall mean Party A and Party B hereto, collectively, and “Party” shall
mean any of the Parties hereto, individually.
	 
	1.16	 	“Renminbi” or “RMB” shall mean the lawful currency of the PRC. “US dollars”
or “USD” shall mean the lawful currency of the United States of America.
	 
	1.17	 	“Subsidiary’’ shall mean any corporation in which any of the Parties and/or their
parent companies, owns or controls 50% (Fifty Percent) or more of the
total voting stocks.

Article 2 Parties to Cooperative Company

	2.1	 	The Parties to this Contract are:

	 	 	 	 	 	 
	 	Party A:
	 	Infineon Technologies China Co., Ltd.
	 	     Place of Registration:	 	No. 7, Lane 647
Song Tao Road, Zhangjiang
	 	 	 	Hi-tech Park, Pudong New District, Shanghai,

PRC
	 	     Legal Address:	 	No. 7, Lane 647 Song Tao Road, Zhangjiang
	 	 	 	Hi-tech Park, Pudong
New District, Shanghai, 

PRC
	 	     Legal Representative:

	 	Name:
	 	LOH Kin Wah
	 	 

	 	Position:
	 	Chairman
	 	 

	 	Nationality:
	 	Malaysian

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	 	Party B:
	 	China-Singapore Suzhou
Industrial Park Ventures Co., Ltd.
	 	     Place of Registration:	 	11th
Floor International Building, #2 Suhua
	 	 	 	Road Suzhou Industrial
Park, Jiangsu, PRC
	 	     Legal Address:	 	11th Floor International Building, #2 Suhua
	 	 	 	Road Suzhou Industrial
Park, Jiangsu, PRC
	 	     Legal Representative:

	 	Name:
	 	WANG Jinghua
	 	 

	 	Position:
	 	Chairman of the Board

	2.2	 	Representations and Warranties

	 	(a)	 	Each Party hereby represents and warrants to the other Party
that:

	 	(i)	 	in the case of Party A, it is a holding company with limited
liability duly established and validly existing as a legal person under the
Laws and Regulations, and in the case of Party B, it is a limited liability
company duly organized and validly existing under the Laws and
Regulations;
	 
	 	(ii)	 	it has full legal right, power and authority to execute this
Contract, the Articles of Association, and any agreements and documents
referred to in this Contract to which it is a Party and to observe and perform
its obligations hereunder and thereunder;
	 
	 	(iii)	 	its legal representative named above is duly authorized and
empowered to sign, execute and give effect to on its behalf this Contract, the
Articles of Association, and any agreements and documents referred to in this
Contract to which it is a Party;
	 
	 	(iv)	 	it has taken all appropriate and necessary corporate actions
to authorize the execution of this Contract including the Articles of
Association and all of the agreements and documents referred to in this
Contract to which it is a Party and to authorize the performance and
observance of the terms and conditions hereof and thereof; and
	 
	 	(v)	 	its execution, delivery and performance of this Contract, the
Articles of Association and any other agreements and documents contemplated
hereunder will not violate any of its constitution documents, any other
agreement or obligation of such Party, or any currently effective law,
regulation or decree of its jurisdiction of organization or incorporation that
may be applicable to any aspect of the transactions contemplated
hereunder.

3

 

Article 3 Establishment of Cooperative Company

	3.1	 	Establishment of Company
	 
	 	 	In accordance with the Laws and Regulations and based upon the provisions of this Contract,
the Parties have agreed to establish the Company, which shall be managed and operated by
Party A.
	 
	 	 	The Parties have also agreed to draw up and sign the Articles of Association of the
Company. This Contract and the Articles of Association shall be signed by the legal
representatives or duly authorized representatives of the Parties and submitted to the
competent authorities for examination and approval.
	 
	 	 	In case of any inconsistency or conflict between the provisions of this Contract and the
Articles of Association, the provisions of this Contract shall prevail, and the Parties
shall undertake to amend the Articles of Association so as to conform with the provisions
of this Contract.
	 
	3.2	 	 Limited Liability Company
	 
	 	 	The Company shall be a limited liability company with the status of enterprise legal person
under the Laws and Regulations. The liabilities of the Parties to the Company’s creditors
are limited to the amount of the registered capital of the Company and the assets of the
Company shall be the only source available to the Company’s creditors for satisfaction of
their justified claims. No Party shall bear any liability whatsoever for the debts or
obligations of the Company, other than its respective share of liability as specified in
this Contract within the limitation of the registered capital of the Company.
	 
	 	 	In case of losses, neither Party shall be obliged to make funds available to the Company in
excess of its proportion of the registered capital of the Company.
	 
	3.3	 	Name and Address of Company
	 
	 	 	The name of the Company shall be
 in Chinese and Infineon Technologies
Suzhou Co., Ltd. in English. The use of the corporate name “Infineon” shall be subject to
the Contract on the Use of Name “Infineon”, to be concluded between Infineon Technologies AG
and the Company where the Company shall cease to use the word “Infineon” as part of its name
if directed by Party A in the event that Party A is no longer the single largest shareholder
in the Company. The legal address of the Company shall be Fangzhou Road, Suzhou Industrial
Park, Jiangsu, PRC.
	 
	3.4	 	 Date of Establishment
	 
	 	 	The date of the establishment of the Company shall be the date on which the Company is
issued its Business License.

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	3.5	 	Change of Law or Policy

	 	(a)	 	If, after the date of the execution of this Contract, the PRC government,
whether
at the national level or local level, adopts any new law, regulation,
rule or policy, amends or repeals any provision of any existing law, regulation, rule or policy, or
adopts any different interpretation or method of implementation of
any law,
regulation, rule or policy which results in more favorable treatment available to
the Company or any Party (without resulting in less favorable treatment to any
other Party) than the terms of this Contract, the Company and the Party concerned
shall promptly apply to receive the benefits of such more favorable treatment and
the other Party shall use diligent efforts to facilitate such
application.
	 
	 	(b)	 	If, after the date of the execution of this Contract, the PRC government
whether at
the national level or local level, adopts any new law, regulation, rule or policy,
amends or repeals any provision of any law, regulation, rule or policy, or adopts
any different interpretation or method of implementation of any law, regulation,
rule or policy which materially and adversely affects any Party’s economic
benefits under this Contract, then upon written notice thereof from the affected
Party to the other Parties, the Parties shall promptly consult with each other and
determine whether (i) to continue to implement this Contract in
accordance with
the original provisions thereof; or (ii) to effectuate necessary adjustments in
order
to preserve each Party’s economic benefits under this Contract on a basis no less
favorable than the economic benefit it would otherwise receive had such law,
regulation, rule or policy not been promulgated, amended, repealed or so
interpreted or implemented.
	 
	 	(c)	 	If any prior approval is required for the operation of this Contract, either
Party
shall not be deemed to have carried out any obligations under the same unless
such approval shall have been obtained.

	3.6	 	Branches
	 
	 	 	The Company may establish branch offices and subsidiaries anywhere in the PRC and abroad
upon the approval of the Board of Directors and the Approval
Authority (if required).

Article 4 Purpose and Scope of Business of Cooperative Company

	4.1	 	Purpose
	 
	 	 	The purpose of the Company shall be to provide an efficient backend operation for the Memory
Products Group of Infineon Technologies AG with its attendant benefits to the semiconductor
industry in China, as well as to achieve the satisfactory economic returns for the Parties
hereto.

5

 

	4.2	 	Business Scope
	 
	 	 	The business scope of the Company shall be to research & develop, manufacture, assemble &
test IC memory products, sell its products and provide related services.
	 
	4.3	 	Business Scale
	 
	 	 	The scale of business of the Company is intended to provide backend to the memory products
of Infineon Technologies AG with the long-term production volume estimated at l,000,000,000
(in words: One Billion) pieces per year.

Article 5 Total Amount of Investment and Registered Capital

	5.1	 	Total Amount of Investment
	 
	 	 	The total amount of investment of the Company shall be US dollars 1,000,000,000 (in words:
One Billion US dollars).
	 
	5.2	 	Registered Capital
	 
	 	 	The registered capital of the Company shall be US dollars 333,000,000 (in words: Three
Hundred Thirty Three Million US dollars). For the avoidance of doubt, the liability of both
Party A and Party B to contribute to the registered capital of the
Company shall be limited
to US dollars 333,000,000 (in words: Three Hundred Thirty Three Million US dollars) as per
the distribution stated in Articles 5.3 and 5.4.
	 
	5.3	 	 Contribution of Party A to Registered Capital
	 
	 	 	Party A’s contribution to the registered capital of the Company shall be made in US dollars
in an amount of US dollars 241,425,000 (in words: Two Hundred Forty One Million Four
Hundred Twenty Five Thousand US dollars) in cash, which shall represent 72.5% (in words:
Seventy Two Point Five Percent) of the total registered capital of the Company.
	 
	5.4	 	Contribution of Party B to Registered Capital
	 
	 	 	Party B’s contribution to the registered capital of the Company shall be made in RMB in an
amount that equals to US dollars 91,575,000 (in words: Ninety One Million Five Hundred
Seventy Five Thousand US dollars) in cash at the official middle
exchange rate on the date
of payment, which shall represent 27.5% (in words: Twenty Seven Point Five Percent) of the
total registered capital of the Company.
	 
	5.5	 	Contribution Schedule
	 
	 	 	The Parties’ registered capital contribution shall be made in accordance with the following
schedule:

6

 

	 	(a)	 	Within 90 (Ninety) days from the issuance of the Business License, Party A
shall
contribute US dollars 16,650,000 (in words: Sixteen Million Six Hundred Fifty
Thousand US dollars), which shall represent 5% (Five Percent) of the total
registered capital of the Company; Party B shall contribute an amount in RMB
that is equivalent to US dollars 33,300,000 (in words: Thirty Three Million Three
Hundred Thousand US dollars), which shall represent 10% (Ten Percent) of the
total registered capital of the Company.
	 
	 	(b)	 	By the end of June, 2004, Party A shall contribute an additional US dollars
58,275,000 (in words: Fifty Eight Thousand Two Hundred Seventy Five
Thousand US dollars), which cumulatively shall represent 22.5% (Twenty Two
Point Five Percent) of the total registered capital of the Company; Party B shall
contribute an additional amount in RMB that is equivalent to US
dollars 58,275,000 (in words: Fifty Eight Million Two Hundred Seventy Five Thousand
US dollars), which cumulatively shall represent 27.5% (in words: Twenty Seven
Point Five Percent) of the total registered capital of the Company.
	 
	 	(c)	 	Party A shall contribute the outstanding balance of its cash contribution, i.e.
US
dollars 166,500,000 (in words: One Hundred Sixty Six Million Five Hundred
Thousand US dollars), which shall represent 50% (Fifty Percent) of the total
registered capital of the Company within 5 (Five) years as of the date of the
establishment of the Company.

	5.6	 	Investment Certificates
	 
	 	 	The Company shall retain at its expense an international certified public accountant
registered in China and acceptable to the Parties to verify the capital contributions by the
Parties and issue a capital verification report. The Company shall then issue investment
certificates to each Party evidencing the contributions by each Party on the basis of such
report in the following items:

	 	(a)	 	name of the Company;
	 
	 	(b)	 	date of establishment of the Company;
	 
	 	(c)	 	name of the Parties;
	 
	 	(d)	 	contents of the investments;
	 
	 	(e)	 	date of each Party’s contribution;
	 
	 	(f)	 	date of issuance of the certificate of investment.

	5.7	 	Difference between Total Amount of Investment and Registered Capital
	 
	 	 	The balance between the total amount of investment and registered capital of the Company
may, pursuant to the decision of the Board in accordance with the business

7

 

	 	 	needs of the Company, be raised by the Company through loans from domestic and/or foreign
financial institutions.
	 
	5.8	 	Increase of Registered Capital and Total Amount of Investment

	 	(a)	 	Any increase in the registered capital and/or total amount of investment of the
Company shall be approved by a unanimous vote of all of the Directors of the
Board present in person by duly organized and functional telephone or video
conference or by proxy at a duly convened meeting of the Board and submitted, if
required by Laws and Regulations, to the Approval Authority for
approval. Upon
receipt of such approval, the Company shall register the increase in the registered
capital and/or total amount of investment with the Business
Registration
Authority, if required by Laws and Regulations.
	 
	 	(b)	 	Unless otherwise agreed to by the Parties and approved by the Board, any
increase in the registered capital shall be made by the Parties in the same
proportions as their originally subscribed ratio of the registered capital. The
Parties may agree between themselves to adjust their proportional
ratio of the
Company’s existing registered capital subject to any required approval of the
Approval Authority. If any agreement is reached between the Parties to adjust
their registered capital, Party B shall endeavour to facilitate approval by the
Approval Authority.

Article 6 Transfer of Equity

	6.1	 	Transfer of Equity
	 
	 	 	The Parties agree that neither of them shall be entitled to sell, assign or otherwise
dispose of all or part of its interests in the registered capital of the Company to any
third party (except to its Subsidiary or its Affiliate where no prior consent is required
other than written notification) unless with the prior written
consent of the other Party. However, Party B hereby agrees that no consent is required other than written notification
if Party A sell, assign or otherwise dispose of all or part of its interests in the
registered capital of the Company to any third party under the following conditions:

	 	(a)	 	The transferee shall covenant in writing to abide by all the obligations of
Party A
under this Contract to the extent of the transferred amount of registered capital;
or
	 
	 	(b)	 	Party A shall remain as the single largest shareholder in the
Company, and is principally managing the operations of the Company.

Notwithstanding that Party B agrees that no consent is required for disposals to transfer
to a Subsidiary or Affiliate of Party A or under those conditions (a) and (b) stated
earlier:

	 	(1)	 	Party B shall still be obligated to execute all necessary
documents as may be
required by Approval Authority to validate the transfer of equity contemplated by
Party A.

8

 

	 	(2)	 	If Party A intends to transfer such part of its interest in the registered
capital resulting in Party A ceasing to be the single largest shareholder of the
Company or not principally managing the operations of the Company, the prior
consent of Party B shall be obtained. In the event that no such consent is obtained
after 60 (Sixty) days, Party A may elect to exercise the Call Option whereupon
Party A may proceed with the transfer on completion of the exercise of the Call
Option. If Party A does not elect to exercise the Call Option, then the act of the
initial transfer shall terminate.

	 	 	The Parties agree that:
	 
	 	 	At any time after the
3rd
anniversary of the establishment of the Company, Party
A shall be entitled to exercise its Call Option to buy out all or part of Party B’s equity
interest in the Company. Party B shall comply with the Call Option, and do all such deeds
and actions required to transfer the equity interest to Party A or its designated assignee,
including the procure that the Approval Authority shall grant consent for the transfer.
This Call Option shall be exercisable more than once by Party A (at not less than USD10
million at each exercise) until the entire equity interest of Party B in the Company had
been depicted. The pricing of the transfer shall be pursuant to Article 1.7 of this
Contract and Party B shall be paid in Renminbi on the date of completion of the exercise of
the Call Option (unless there is a delay due to the Approval Authority, completion shall
take place no later than 90 (Ninety) days after the date of exercise of the Call Option by
Party A).
	 
	 	 	The Parties agree, further, that Party B may compel Party A to exercise the Call Option to
buy out all of Party B’s equity interest in the Company if Party B has obtained reasonable
evidence that Party A had transferred substantial portions of the total assets of the
Company other than in good faith, for bona fide reasons or in the ordinary course of
business, and not based on the arm’s length principle.
	 
	6.2	 	Approvals
	 
	 	 	All equity transfers shall be submitted to the Approval Authority for approval if required
by the Laws and Regulations. Upon receipt of the approval, the Company shall register the
change in equity with the Business Registration Authority.

Article 7 Responsibilities of Parties

	7.1	 	Responsibilities of Party A:
	 
	 	 	Party A shall be responsible for the following matters during
the Joint Venture Term:

	 	(a)	 	making its contributions to the registered capital of the Company in accordance
with the terms and conditions of this Contract;
	 
	 	(b)	 	acting and causing its Directors to act at all times in good faith with respect
to all
matters relating to the Company and this Contract;

9

 

	 	(c)	 	taking the whole responsibility of management of the Company
which is set forth in this Contract;
	 
	 	(d)	 	assisting the Company in selecting and purchasing outside the PRC at
competitive
prices materials, machinery and equipment needed by the Company and in
shipping such items to the designated Chinese ports, subject to the Framework
Purchase Contract to be concluded between Infineon Technologies AG and the
Company;
	 
	 	(e)	 	assisting the Company to grasp the technology and adopt those technology into
production as quickly as possible subject to payment of the licence fees and other
terms and conditions as set forth in the Technology Licence Contract to be
concluded between Infineon Technologies AG and the Company;
	 
	 	(f)	 	assisting the Company in training its PRC staff and workers;
	 
	 	(g)	 	dispatching qualified and experienced expatriate employees to the Company as
needed by the Company subject to the Secondment Contract to be concluded between
Infineon Technologies AG and the Company and assisting in the recruiting of other
managerial, technical and operational personnel of the Company; and
	 
	 	(h)	 	handling other matters set forth in this Contract and as may be entrusted to
the Company from time to time.

	7.2	 	Responsibility of Party B:
	 
	 	 	Besides other responsibilities as stipulated in other articles hereof, Party B shall be
responsible for the following matters during the Joint Venture Term:

	 	(a)	 	making its contribution to the registered capital of the Company in accordance
with the terms and conditions of this Contract;
	 
	 	(b)	 	acting and causing its Directors to act at all times in good faith with respect
to all
matters relating to the business of the Company and this Contract and any other
contracts and agreements pursuant to this Contract;
	 
	 	(c)	 	assisting the Company in obtaining all necessary approvals, registrations,
permits
and licenses from the relevant PRC authorities for the establishment and operation
of the business hereunder of the Company;
	 
	 	(d)	 	assisting the Company in applying for and obtaining the most preferential tax
reductions and exemptions and other investment incentives available under Laws
and Regulations and policies applicable to the Company;
	 
	 	(e)	 	assisting the Company in liaising with the relevant authorities to effectively
procure water supply, power supply, transportation, telecommunications, and such other
things as required for the Company’s operations;

10

 

	 	(f)	 	assisting the expatriate employees of the Company in obtaining all necessary
entry visas and work permits and helping them in arranging for lodging, medical
care and travel formalities in China;
	 
	 	(g)	 	assisting the Company in opening Renminbi and foreign currency bank accounts
and in obtaining all necessary Renminbi loans from local banks;
	 
	 	(h)	 	assisting the Company in carrying out all import and customs declaration
formalities with respect to equipment and office appliances imported by the Company;
	 
	 	(i)	 	assisting the Company in recruiting various types of qualified Chinese
personnel in accordance with the needs and criteria of the Company;
	 
	 	(j)	 	assisting the Company in purchasing within China at reasonable cost all
necessary equipment, office and telecommunications equipment;
	 
	 	(k)	 	assisting in keeping the Company up-to-date of Laws and Regulations and
policies of the PRC government at national or local levels applicable to any aspect of
the operation of the Company and assist the Company in complying with such Laws and
Regulations;
	 
	 	(l)	 	handling other matters set forth in this Contract and as may be entrusted to
the Company from time to time.

	7.3	 	Except as otherwise expressly provided for in this Contract, expenses incurred by each Party
in fulfilling the aforesaid responsibilities may be borne by the Company only upon the approval by the Board.

Article 8 Return

	8.1	 	The Parties agree that:
	 
	 	 	Party B shall be entitled to enjoy its contribution return (hereinafter referred to as:
“Return”) paid in RMB annually by the Company based on all of its contribution made to the
registered capital of the Company. The amount of the Return shall be the amount of Party
B’s contribution made to the Company multiplied by the Return rate. The Return rate shall
be calculated [***].
	 
	 	 	[***].
	 
	 	 	For the avoidance of doubt, Party B shall not be entitled to any dividend or other forms of
remuneration so long as the Return is duly paid out to Party B by the Company. All dividends
shall belong to Party A and Party B shall undertake all actions and execute all deeds to
effect all dividend payments to Party A only.

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	8.2	 	The above-mentioned Return shall be calculated from the date of Party B’s first capital
contribution to the Company, and shall be paid annually by the Company to Party B in full
within 30 (Thirty) days after December 31st. The first Return shall be payable
on or before
January 30th, 2004 calculated on a daily basis (360 days for a
year) from the date of Party B’s disbursement to the Company according to Article 5.5 of
this Contract.
	 
	 	 	As for the year of share transfer from Party B to Party A defined in Article 6 of this
Contract, the Return payable to Party B shall be calculated at day-to-day basis, starting
from January 1st of that year to date of execution of share transfer.

Article 9 License and Service

	9.1	 	The Parties agree that they shall, upon establishment of the Company, cause their
representatives on the Board of the Company to vote for the entry into:

	 	1)	 	the Contract on the Use of the Name “Infineon”;
	 
	 	2)	 	the Framework Purchase Contract; and
	 
	 	3)	 	the Technology License Contract; and
	 
	 	4)	 	the Secondment Contract.

	9.2	 	The Parties undertake to sign the contracts, agreements or documents as provided for in
this Contract for the purpose of providing necessary assistance to the Company in
running the Company’s businesses.

Article 10 Board of Directors

	10.1	 	 Formation of Board

	 	(a)	 	The date of issuance of the Company’s Business License shall be deemed to be
the date of the establishment of the Board of Directors.
	 
	 	(b)	 	The Board of Directors shall be composed of 7 (Seven) Directors of whom 6
(Six) shall be appointed by Party A, 1 (One) by Party B. During the Term, the chairman
of the Board shall be appointed by Party A. However, if Party B holds less than 10%
(Ten Percent) of the registered capital of the Company, after payment-in had been duly
effected as per Article 5, Party B shall not be entitled to appoint any director,
whereupon Party A shall have the right to appoint an additional director. Party A shall
on its own deal with any request for board representation from transferees who have
acquired certain portions of the registered capital of the Company from Party A.
	 
	 	 	 	The Director appointed by Party B shall be a qualified professional acceptable to
both Parties and Party B agrees to take all acts and do all deeds necessary to
effect Article 10.1(b) to cause the expeditious removal of its appointed Director,
if the conditions in that Sub-Article are satisfied.

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	 	 	 	The member of the Board shall each have a term of 3 (Three) years, and shall be
eligible for consecutive terms upon reappointment made by the original appointing
Party.
	 
	 	 	 	Any vacancy created in the Board of Directors shall be immediately filled by the
Party who originally appointed the absent Director.
	 
	 	 	 	Any Party may at any time remove with or without cause any Director appointed by
such Party by written notice to the Company and appoint in lieu thereof any other
person to serve the remainder of the removed Director’s term.
	 
	 	(c)	 	The chairman of the Board shall be the legal representative of the Company and
shall have the power to represent and act on behalf of the Company. Whenever the
chairman is unable or fails to discharge his duties, he shall authorize another
Director to represent the Company and perform the chairman’s duties.

	10.2	 	Powers of Board

	 	(a)	 	The Board of Directors shall be the highest authority of the Company and shall
have the right to make decisions on all major and important matters of the Company.
	 
	 	(b)	 	Resolutions involving the following matters shall be adopted only by the
unanimous affirmative vote of all Directors present in person, by proxy at a
duly convened Board meeting:

	 	(i)	 	amendment of the Articles of Association;
	 
	 	(ii)	 	increment or reduction of registered
capital;
	 
	 	(iii)	 	merger and spin-off of the Company and change in the
form of the organization;
	 
	 	(iv)	 	dissolution of the Company;
	 
	 	(v)	 	mortgage of the assets of the Company;
	 
	 	(vi)	 	getting listed on a stock exchange.

	 	(c)	 	Resolutions involving the following matters shall be subject to and adopted by
more than half affirmative vote of all Directors present in person or by proxy at a
duly convened Board meeting:

	 	(i)	 	addition of items to or change of the scope of business of the Company;
	 
	 	(ii)	 	establishment of branch offices and/or subsidiaries;
	 
	 	(iii)	 	
distribution and payment of the Company’s profits;

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	 	(iv)	 	licensing of technology or know-how to or from any third Party;
	 
	 	(v)	 	contribution, use or expenditure of the general reserve fund,
the bonus and welfare fund and the enterprise expansion fund to be established
under the Laws and Regulations;
	 
	 	(vi)	 	engagement and dismissal of any independent auditor,
accounting, financial or legal advisors of the Company;
	 
	 	(vii)	 	approval of the accounting and financial system of the Company;
	 
	 	(viii)	 	approval of the annual business plan and annual budget of the Company;
	 
	 	(ix)	 	approval of the annual auditing report of the Company; and
	 
	 	(x)	 	other matters the Board considers subject to the approval of a
majority vote of the Directors.

	10.3	 	Meetings

	 	(a)	 	The first Board meeting shall be held within 90 (Ninety) days from the date of
the
issuance of the Business License.
	 
	 	(b)	 	The Board shall meet at least once a year. Board meetings shall be held at the
legal address of the Company unless otherwise determined by the Board of
Directors. Board meetings can also be held by duly organized and functioned
telephone or video conference. 2/3 (Two Thirds) of all of the Directors (including
proxies) shall constitute a quorum for any Board meeting. If at any properly
convened meeting, no quorum is present, then the Board shall reconvene at the
same time and place 1 (One) week later unless otherwise notified by the
chairman.
	 
	 	(c)	 	The chairman of the Board shall set the agenda of Board meetings and shall be
responsible for convening and presiding over such meetings.
	 
	 	(d)	 	The chairman of the Board shall call an interim meeting of the Board under a
request therefore from no fewer than 1/3 (One Third) of all Directors specifying
the matters to be discussed, and shall notify all Directors in writing the agenda
and subject of the meeting.
	 
	 	(e)	 	The chairman of the Board shall send written notice to all Directors at least
14 (Fourteen) days prior to any regular, 7 (Seven) days in the case of an interim
meeting to be held, stating the agenda, time and place of the meeting. Such notice
may, however, be waived by the unanimous consent of all Directors prior, after or at
the meeting in person, by telephone or by proxy. A Board meeting shall be convened no
less than 14 (Fourteen) days and no more than 28 (Twenty Eight) days from the date of
the issuance of the notice in the case of a regular meeting.

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	 	 	 	and no less than 7 (Seven) days and no more than 14 (Fourteen) days in case of an
interim meeting.
	 
	 	(f)	 	Should a Director be unable to attend a Board meeting for any reason, he must
appoint a proxy in writing by mail or facsimile or hand-delivery to be present and to
vote at the meeting on his behalf. A proxy may represent one or more Directors. A
proxy shall have the same rights and powers as the Director who appointed him.
	 
	 	(g)	 	Board resolutions may also be passed through a written circular vote via mail
or facsimile exchange. Such written resolutions shall be filed with the minutes of the
Board and shall have the same force and effect as a vote taken by the Directors
physically present at a meeting.
	 
	 	(h)	 	Unless otherwise decided by the Board, Directors shall serve as Directors
without remuneration unless otherwise approved by the Board. All reasonable costs,
including round-trip airplane tickets and reasonable accommodation incurred by any
Director or his proxy for attending a Board meeting and for performance of duties
assigned by the Board, shall be borne by the Company. Remuneration and other expenses
of each Director unrelated to Company business shall not be borne by the Company. If a
Director also assumes a position as a manager or staff employee in the Company, he shall
be compensated by the Company according to that position.
	 
	 	(i)	 	Each Director shall have 1 (One) vote.
	 
	 	(j)	 	The general manager of the Company shall be entitled to attend all Board
meetings in a consultative capacity but shall not be entitled to vote at the meetings
(unless he is a Director).

	10.4	 	Minutes of Board meetings shall be signed by all Directors present at the meetings in person
or by proxy. In order to facilitate the smooth conduct of Board business, the chairman or, in
the chairman’s absence, a Director appointed by the chairman to act on his behalf, may appoint
a secretary for the purpose of any Board meeting. The duties of the secretary shall include
taking minutes of the meeting, translating or arranging for the translation of documents, and
delivering documents relating to the meeting to the Directors. Minutes of Board meetings shall
be kept in English and translated into Chinese, and be placed on file at the Company’s head
office. Copies of the minutes shall be sent to each Party.

Article 11 Management Organization

	11.1	 	 Management Organization

	 	(a)	 	The Board of Directors of the Company shall establish a management team, which
shall be responsible to and under the leadership of the Board and in charge of the
day-to-day operation and management of the Company. Unless otherwise

15

 

	 	 	 	decided by the Board, the operation and management organization shall be made of 2
or 3 officers (for example, general manager and chief financial officer)
(collectively, the “Senior Corporate Officers”).
	 
	 	(b)	 	The chairman of the Board of and any other Director may concurrently serve as
a Senior Corporate Officer, as well as any other officer of the Company.

	11.2	 	 Responsibilities and Powers of Senior Corporate Officers
	 
	 	 	The Board of Directors shall have the power to determine, qualify, and change in any way
the power, responsibility and authority of the Senior Corporate Officers. The Senior
Corporate Officers shall implement the decisions of the Board of Directors without any
condition.
	 
	11.3	 	Non-competition

	 	(a)	 	All the Senior Corporate Officers of the Company shall be forbidden from
concurrently serving for or working at any other individual, company, unit, entity or
organization as well as directly or indirectly taking part in any activities related to the above-mentioned individual, company, unit, entity or organization which may
be competitive and conflictive to the interest and business of the
Company,
whatsoever unless authorized and approved by the Board.
	 
	 	(b)	 	All other management personnel of the Company shall be forbidden from
concurrently serving for or working at any other company, unit, entity or organization
whatsoever unless authorized by the general manager and approved or ratified by the
Board. Any personnel in violation of such prohibition shall be subject to immediate
dismissal by the general manager, unless the Board shall decide and general manager
decided otherwise.

	11.4	 	Dismissal
	 
	 	 	Any Senior Corporate Officer who misuses or abuses his position for personal ends, engages
in graft or bribery in connection with the Company’s business, acts in violation of any
Board decisions or laws, acts in any way in competition with the Company as prohibited
hereunder, is seriously derelict in his duties, or fails to perform any assigned tasks
without due cause shall be dismissed by the Board of Directors without any compensation.
Upon such dismissal, the Board shall immediately appoint a replacement. Any other management
personnel who engage in such improper activities shall be immediately dismissed by the
general manager.

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Article 12 Labor Management

	12.1	 	Governing Principle
	 
	 	 	The Company shall be entitled to full enterprise autonomy granted to foreign investment
enterprises and shall have complete authority over the hiring and dismissal of its
employees. The recruitment, employment, discipline, dismissal and resignation of the
employees of the Company and their wages, salaries, insurance, welfare benefits and other
matters shall be handled in accordance with the Laws and Regulations.
	 
	12.2	 	Labor Contract
	 
	 	 	The Company may conclude individual employment contracts with staff and workers directly.
The Company shall file such contracts with the local labor department for the record.
	 
	12.3	 	Labor Plan
	 
	 	 	The labor plan including staff number and relative position explanations shall be
determined by the general manager and deputy general manager and approved by the Board of
the Company. All staff should respect to the regulations of the Company. The staff the
Company employed shall be limited to the number required for its management. Increasing or
decreasing the total number of staff because of extension or reduction of Business Scale;
raising or lowering of working efficiency, should be approved by the Board.
	 
	12.4	 	Labor and Personnel Policies

	 	(a)	 	Matters such as employment, dismissal, resignation, wages, insurance, welfare
benefits, reward and discipline of staff and workers of the Company as well as
title to and the right to apply for copyright protection, patent protection and
other
rights regarding inventions and works of authorship in the course of employment
shall be stipulated in the labor and personnel policies of the Company and the
labor contracts between the Company and the employees.
	 
	 	(b)	 	The general manager shall implement hiring policies whereby all PRC employees
of the Company shall be selected on the basis of examination and shall have the
most competitive merits and qualifications. In this regard, upon the receipt of
necessary approvals, the Company may hire qualified personnel from anywhere
within China and, if necessary, from foreign countries.
	 
	 	(c)	 	The Company shall use reasonable endeavors to sign non-competition and
confidentiality agreements with its employees in accordance with the principles
herein.

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	 	12.5	 	Training
	 
	 	 	 	The Parties recognize that the Company will incur significant expenses in training
management personnel and other employees. No Party shall cause any staff and worker who
received training with pay from the Company or any third parties entrusted by the Company,
including training abroad, to resign or otherwise leave the Company during the term of such
staff or worker’s labor contract. Each employee so trained may be required to sign a
training bond with the Company such that the employee shall be bound to work for the
Company during the period of bond (failing which compensation shall be payable forthwith by
the relevant employee) and the bonded period shall commensurate with the amount of training
expenses incurred.
	 
	 	12.6	 	Power of General Manager
	 
	 	 	 	Subject to any limitations the Board may set, the general manager shall have the power to,
according to the degree of seriousness of the case, give warnings, record demerits, deduct
wages, dismiss or otherwise remove any staff member or worker appointed by him who has
violated the terms of the labor contract, the rules, regulations or labor discipline of the
Company or applicable Laws and Regulations.
	 
	 	 	 	For the avoidance of doubt, the day-to-day management of the Company and the appointment of
key officers of the Company shall be left to the general manager and such other officers
appointed.

Article 13 Trade Union

	13.1	 	A trade union may be established in the Company in accordance with the Laws and Regulations.
Activities of the trade union shall be conducted after normal working hours, shall not
interfere with the normal operations of the Company. If a trade union is established by the
staff and workers of the Company, the Company shall be charged with the expenditure into the
Company’s trade union fund for such trade union’s use in accordance with the Laws and
Regulations.

Article 14 Finances, Taxes, Audit and Distribution of Profits

	14.1	 	Taxes

	 	(a)	 	The Company shall pay taxes in accordance with relevant Laws and Regulations.
	 
	 	(b)	 	The Company shall apply for all preferential tax and customs treatment
available
under the Laws and Regulations and policies, and Party B shall facilitate and
provide quality advice on the same.

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	14.2	 	Finances

	 	(a)	 	The fiscal year of the Company shall start on January 1st of each
calendar year and
end on December 31st of the same year. The first fiscal year of the
Company shall
commence on the date of the issuance of the Company’s Business License and
end on December 31st of the same year. The last fiscal year of the
Company shall
start on January lst of the year of termination or expiration and end on
the date of
termination or expiration of the Joint Venture Term of the Company.
	 
	 	(b)	 	The Company shall adopt the internationally recognized accrual basis and debit
and credit accounting system. All accounting records, vouchers, books and
statements of the Company shall be prepared and kept both in Chinese and
English. The Company shall use Renminbi as the base bookkeeping currencies for
its financial statements. The annual, quarterly and monthly reports shall be
prepared and kept in both Chinese and English. The chief financial officer shall be
responsible for formulating the accounting and administrative measures regarding
the Company’s financial affairs, which shall be submitted to the Board for
approval.

	14.3	 	Audit
	 
	 	 	The Company shall engage an international accounting/auditing firm registered in China (the
choice of which shall be as directed by Party A) as its auditor to examine and verify the
accounts and books of the Company within three (3) months following the end of each fiscal
year. The annual audit report issued by such firm shall be submitted to the Board. Any Party
shall also have the right, but not the duty, to appoint another accounting/auditing firm
registered in China or abroad to audit the accounts and books of the Company at such Party’s
own cost. The Company shall make available all of its accounting books and records to such
auditor and provide convenience for the auditing.
	 
	14.4	 	Allocation to Three Funds
	 
	 	 	After the payment of corporate income tax and other applicable taxes by the Company each
year, the Board shall determine the amount from the after-tax net profits to be allocated
into the Company’s reserve fund, enterprise expansion fund, and the employee bonus and
welfare fund to be set up in accordance with the relevant Laws and Regulations. The annual
allocations to and prescription of any limit for the aforesaid funds to be paid out of the
after-tax net profits shall be determined by the Board in light of the business and
financial conditions of the Company.

Article 15 Bank Accounts and Foreign Exchange

	15.1	 	Accounts
	 
	 	 	The Company shall open Renminbi accounts and foreign exchange accounts with financial
institutions in China.

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	15.2	 	Foreign Exchange
	 
	 	 	The Company shall handle its foreign exchange matters in accordance with the Laws and
Regulations. If required by the Company, Party B shall make its best efforts to assist the
Company in handling such matters.

Article 16 Joint Venture Term

	16.1	 	Joint Venture Term
	 
	 	 	The duration of the Company shall commence on the date of the issuance of the Company’s
Business License and continue for a period of 50 (Fifty) years, unless, earlier terminated
or further extended as provided herein.
	 
	16.2	 	Extension
	 
	 	 	The Parties shall commence negotiations on whether and for how long to extend the Joint
Venture Term no less than 2 (Two) years prior to the expiration of the Joint Venture Term
(or any extension thereof). A written application for the extension of duration, proposed
by one Party and agreed to by all Parties, shall be filed to the Approval Authority 6 (Six)
months prior to the expiration date of the Joint Venture Term of the Company.

Article 17 Liabilities for Breach of Contract

	17.1	 	Should all or part of the Contract be unable to be fulfilled as a result of act or
omission of one Party, the Party in default shall bear the liabilities thereof. Should it be
the fault of both the Parties, they shall bear respective liabilities according to the actual
situation.
	 
	17.2	 	Should Party A breach Article 6.1 or the Company fail to pay the Return as per Article 8.1,
therefore, Party B should have the right to consult with Party A to agree (Party A shall not
unreasonably withhold such consent) to a disposal of any assets of the Company up to the
amount equivalent to the registered capital paid by Party B together with the unpaid accrued
Return receivable by Party B pursuant to Article 8.1 of this Contract.

Article 18 Termination, Dissolution and Liquidation

	18.1	 	Any Party not in breach of this Contract may terminate (the “Terminating Party”) this
Contract with immediate effect by written notice to the Company and the other Party if any of
the following events occurs:

	 	(a)	 	A Party breaches any substantial provision of this Contract, and
	 
	 		 	- the breach threatens to render the Company incapable
of continuing its operations; or

20

 

	 	 	 	- the breach infringes upon a significant right of the complaining Party;
	 
	 	 	 	and the breaching Party fails to make good such breach within 120 (One Hundred and Twenty)
days of receiving written notice of the breach from the complaining Party;
	 
	 	(b)	 	A Party is permanently or for an unforeseeable period of time prevented from fulfilling its
obligations under this Contract;
	 
	 	(c)	 	A Party undergoes bankruptcy, liquidation or reorganization proceedings or any other
insolvency proceedings filed or commenced against it in a court of law or by a public
authority, or has voluntarily filed for bankruptcy or has had involuntarily filed against it
a bankruptcy petition, which is not dismissed within 60 (Sixty) days;
	 
	 	(d)	 	A Party has become insolvent or faces a substantial deterioration in the actual or imminent
value of its assets;
	 
	 	(e)	 	A Party has an order entered against it either appointing a receiver or trustee for, or
issuing a levy attachment against, a substantial portion of its assets, and without such
order being vacated, set aside or stayed within 60 (Sixty) days;
	 
	 	(f)	 	A Party has its equity in the Company seized by a creditor or assigns its equity for the benefit of its creditors;
	 
	 	(g)	 	A Party is dissolved;
	 
	 	(h)	 	The accumulated losses of the Company exceed half of the registered capital;
	 
	 	(i)	 	The Parties decide to terminate this Contract as stipulated in Article 20 of this Contract.
	 
	 	 	 	If this Contract is terminated due to the acts or omissions of a Party (the “Default
Party”), pursuant to (a), (b), (c), (d), (e), (f) and (g), the Party not in default
(“Terminating Party”) shall have the following choices:

	 	(1)	 	If so requested by the Terminating Party in writing, the
Default Party shall sell all of its interest in the registered
capital of the Company to the Terminating Party within 90 (Ninety)
days of the written request.
	 
	 	 	 	Should the Default Party refuse to confirm agreement to sell all of its interest in the
registered capital of the Company to the Terminating Party within 28 (Twenty Eight)
days after written request, the Terminating Party shall be entitled to either:

21

 

	 	a.	 	commence proceedings to compel the Default Party to sell
all of its interest in the registered capital of the Company
to
the Terminating Party; or
	 
	 	b.	 	issue an alternative written notice to
compel the Default
Party to purchase all of the interest of the Terminating
Party in the registered capital of the Company. If an
alternative written notice is issued, it shall
become
irrevocable.

The request for sale of equity shall be exercised in writing together with the
notice of termination.

The Terminating Party and the Default Party shall appoint, within a period of 2
(Two) weeks from the date of receipt of the termination notice, an independent
international auditor who shall determine the fair market purchase price for the
portion of the registered capital in the Company. If the Parties fail to appoint
the auditor within the 2(Two)-week period, the Terminating Party shall have the
right to submit the matter to the President of the Singapore International
Arbitration Center, who shall in turn appoint an auditor within a period of 30
(Thirty) days.

The purchase price determined by the auditor shall be final and binding upon the
Parties. No Party shall call upon a court of law or any other authority in an
attempt to invalidate, amend or review the auditor’s determined purchase price.

The Default Party shall pay the costs of the auditor’s opinion.

	 	(2)	 	If the reason for termination is due to Party
A’s serious material breach of this Contract, and Party A fails
to remedy the breach within 60 days after written notification
by Party B, then Party B has the right to compel Party A and
Party A shall exercise the Call Option under Article 6.1.

	18.2	 	Liquidation

	 	(a)	 	Upon the scheduled expiration of the Joint Venture Term (including
any
extension thereof) or the earlier termination of the Company, the Board of
Directors shall immediately adopt a unanimous resolution to liquidate
the
Company, formulate liquidation procedures, establish a liquidation committee and
notify the Approval Authority of the liquidation of the Company.
	 
	 	(b)	 	The liquidation of the Company shall be handled in accordance with applicable
Laws and Regulations. The liquidation committee shall be composed of 3 (Three)
persons. 1 (One) shall be appointed by Party A with the obligations of leading the
liquidation committee, 1 (One) shall be appointed by Party B, and the third shall
be a person agreed upon by the first 2 (Two) people appointed and shall be an
accountant or lawyer registered in China. In case any member of the liquidation
committee so appointed cannot serve, a replacement shall be appointed within 10

22

 

	 	 	 	(Ten) days. If the first 2 (Two) members fail to agree as to the third member within
15 (Fifteen) days, the third member shall be appointed by the Company’s regular
external auditors and shall be an accountant or lawyer registered in China. The
Board of Directors shall thereupon submit the list of the 3 (Three) members of the
liquidation committee to the Approval Authority for record.
	 
	 	(c)	 	The liquidation committee shall be fully responsible for the work set forth in
the
Laws and Regulations.
	 
	 	(d)	 	The Board of Directors shall within 15 (Fifteen) days of receipt of the report
of
the liquidation committee, make decisions on the liquidation plan of
the
liquidation committee. If the Board fails to decide the liquidation plan of the
liquidation committee due to disputes between the Parties, then the matter shall be
handled pursuant to Article 22 hereof.
	 
	 	(e)	 	Any money and assets received by the Company from liquidation shall be applied
in the following order, if required by the applicable Laws and Regulations:

	 	(i)	 	to the payment of liquidation expenses and remuneration
of the members of the Liquidation Committee;
	 
	 	(ii)	 	to the payment of outstanding wages and benefits of the
staff of the Company;
	 
	 	(iii)	 	 to the payment of outstanding State taxes;
	 
	 	(iv)	 	to the payment of other debts;

	 	 	 	The remaining proceeds of liquidation (if any) shall be paid firstly to the Party B
up to the sum of Party B’s RMB contribution made to the Company and its due accrued
Return receivable pursuant to Article 8.1;
	 
	 	 	 	The other remaining proceeds (if any) shall be paid to Party A.
	 
	 	(f)	 	Upon completion of liquidation of the Company, the liquidation committee shall
submit a liquidation proceedings wind-up report to the Board of Directors for approval
and submission to the Approval Authority for the record and carry out the necessary
procedures to cancel the Company’s tax registration, cancel its business registration
and return its Business License, and register with the customs authorities.

Article 19 Confidentiality

	19.1	 	Confidentiality

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	 	(a)	 	Each of the Parties acknowledges and agrees that the discharge of its
obligations
under this Contract will involve the disclosure of confidential information
(“Confidential Information”).
	 
	 	(b)	 	Each of the Parties, its Affiliates, and the Company shall use Confidential
Information only for the purposes specified in this Contract, and shall not disclose
any Confidential Information to any third Parties without the prior written consent
of the Party providing such Confidential Information, except the information
already known to the receiving Party or Parties at the time of receipt, made
publicly available by the supplying Party and coming into the public domain
otherwise than through the default of the receiving Party or Parties. No entity
other than the Company shall be permitted to use, practice or exploit any
Confidential Information provided by any Party or its Affiliates in any manner
without the prior written consent of such Party or such Affiliates.
	 
	 	(c)	 	The Party receiving Confidential Information shall cause its personnel with
access
thereto, and the Company shall cause all of its personnel, to
execute a
confidentiality agreement with respect thereto in form and substance satisfactory
to the providing Party. The receiving Party, its Affiliates and the Company shall
make Confidential Information available only to those of their
personnel whose
duties necessitate access to or familiarity with such Confidential Information. In
addition, the receiving Party shall store Confidential Information in the same
manner as it would for its own confidential information and where not less than
reasonable care and diligence shall be applied.
	 
	 	(d)	 	The confidentiality obligations of the Parties set forth in this Article 19
shall he
maintained during the term of this Contract and for an additional period of seven
(7) years after the expiration or termination of the Company.
	 
	 	(e)	 	Notwithstanding this Article 19, each Party may disclose
Confidential
Information:

	 	(i)	 	to its legal and financial advisers requiring the
information for the purposes of this Contract; and
	 
	 	(ii)	 	to the extent required by the Laws and Regulations or a
stock exchange.

Article 20 Force Majeure

	20.1	 	If any Party is prevented from performing any of its obligations under this Contract due to
an Event of Force Majeure, the prevented Party shall within 10 (Ten) business days of the
occurrence of such Event of Force Majeure notify the other Parties of the occurrence of any
Event of Force Majeure by cable, telex, facsimile or courier. Within 15 (Fifteen) days of the
occurrence of such Event of Force Majeure, the prevented Party shall provide the other Parties
a detailed description of the Event of Force Majeure. The prevented Party shall use
commercially reasonable endeavors to mitigate and circumvent the Event of Force Majeure.

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	20.2	 	According to the effects of Force Majeure on the performance
of the Contract, the
Parties shall consult each other to decide whether to terminate the contract or to exempt one
Party of the Parties from implementing part of its/their obligations pursuant to the
Contract, or to delay the performance of the Contract.
	 
	20.3	 	Should the delay caused by any Event of Force Majeure continue for more than 90 (Ninety)
consecutive days from the date of such notice, any of the other Parties may choose to either
continue to perform this Contract or terminate this Contract.

Article 21 Applicable Law

	21.1	 	The validity, interpretation and implementation of this Contract shall be governed by the
Laws and Regulations, but in the event that there are no Laws and Regulations governing a
particular matter relating to this Contract, reference shall be made to general international
commercial practices.

Article 22 Dispute Resolution

	22.1	 	Amicable Settlement
	 
	 	 	In the event that a dispute arises out of or in connection with this Contract
among the Parties, the Parties shall endeavor in good faith to reach an amicable settlement
of the dispute through friendly negotiations or referral to an independent mediator.

	22.2	 	Arbitration

	 	(a)	 	If no mutually acceptable settlement of the dispute is made within the 60
(Sixty) days from the commencement of the settlement negotiation or from the date of
referral to an independent mediator or if any Party refuses to engage in any settlement
negotiation or if the Parties fail to agree on the selection of the independent
mediator, any Party may submit the dispute to Singapore International
Arbitration Centre (SIAC) by three arbitrators for binding arbitration of the dispute
in accordance with its applicable rules of SIAC. Party A and Party B shall each
nominate one arbitrator and the third arbitrator shall be nominated by the two
aforesaid arbitrators jointly.
	 
	 
	 	(b)	 	The venue of arbitration shall be Singapore. The procedural law of this place
shall apply where the rules of SIAC are silent. The arbitral award shall be final and
binding upon the Parties hereto. No Party shall call upon a court of
law or any other
authority in an attempt to invalidate, amend or review the arbitral award.
	 
	 	(c)	 	The language of any arbitration proceedings shall be in the English language.

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Article 23 Miscellaneous

	23.1	 	This Contract is written in the English language in 7 (Seven) originals, 1 (One) for each
Party and the Company and 4 (Four) for the Approval Authority, and in the Chinese language in
7 (Seven) originals, 1 (One) for each Party and the Company and 4
(Four) for the Approval
Authority. Both the Chinese language and the English language versions shall be equally
authentic.
	 
	23.2	 	Any annexure of this Contract shall form an integral part of the Contract and has the same
legal effectiveness.
	 
	23.3	 	This Contract hereto constitutes the entire agreement among the Parties with respect to the
subject matter of this Contract and supersedes all prior discussions, notes,
memoranda, negotiations, understandings and documents and agreements between them thereon. All
agreements, contracts and other documents executed by the Parties on the subject matter
before the execution of this Contract shall become null and void automatically when
this Contract enters into effect.
	 
	23.4	 	This Contract may only be amended by written agreement executed by the duly authorized
representatives of each Party hereto. Such amendments shall become
effective upon the approval
of the Approval Authority, if required by the Laws and Regulations.
	 
	23.5	 	The rights and obligations of the Parties established by and under this Contract shall
continue to exist throughout the Joint Venture Term (and any extension thereof) and shall not
be prejudiced by the establishment of the Company or the adoption of the Articles of
Association. In the event of any conflict or inconsistency between this Contract on the one
hand and the Articles of Association on the other, this Contract shall prevail. Articles 17,
19 and 22 of this Contract shall survive the termination of this Contract.
	 
	 	 	All notices given by one Party to the other Parties or by the Company to any Party shall be
made in English by personal delivery, facsimile or registered airmail letter to the address
indicated below or such other address notified in lieu thereof and all notices given by any
Party to the Company shall be sent to legal address of the Company.
	 
	 	 	Party A: Infineon Technologies China Co., Ltd.
	 
	 	 	Address: No. 7, Lane 647 Song Tao Road, Zhangjiang Hi-tech Park, Pudong New District,
Shanghai, 201203 PRC
	 
	 	 	Attention: Managing Director
	 
	 	 	Telephone: 86-21-3895 3708
	 
	 	 	Facsimile: 86-21-5080 6204
	 
	 	 	Party B: China-Singapore Suzhou Industrial Park Ventures Co., Ltd.

26

 

	 	 	Address: Room A311, 328 Airport Road, Suzhou Industrial Park, Jiangsu 215021, PRC
	 
	 	 	Attention: General Manager
	 
	 	 	Telephone: 86-512-62882698
	 
	 	 	Facsimile: 86-512-62882598
	 
	 	 	Unless otherwise specifically provided, the date of receipt of a notice or communication
hereunder shall be deemed to be the date of receipt if delivered
personally, 10 (Ten) days
after its postmark in the case of a registered airmail letter and 1 (One) working day after
dispatch in the case of a facsimile (provided that the sending Party can show proof of
confirmation of sending generated by the facsimile machine), whichever shall first occur.
Any Party may change its address for the purpose hereunder by written notice to the other
Parties.
	 
	23.6	 	Failure or delay on the part of any Party to exercise any right or privilege under this
Contract shall not operate as a waiver nor shall any partial exercise of any right or
privilege preclude any further exercise thereof. Any waiver by a Party at any time of a breach
of any term or provision of this Contract shall not be constructed as a waiver by such Party
of any subsequent breach, its rights under such term or provision, or any of its other rights
hereunder.
	 
	23.7	 	If any one or more of the provisions contained in this Contract or any document executed in
connection herewith shall be invalid, illegal or unenforceable in any respect under any
applicable law, (i) the validity, legality and enforceability of the remaining provisions
contained herein or therein shall not in any way be affected or impaired and shall remain in
full force and effect; and (ii) the Parties shall consult together to replace the invalid,
illegal or unenforceable provision immediately with a term or provision that is valid, legal
and enforceable and that comes closest to expressing the original intention of the Parties.
	 
	23.8	 	The headings contained in this Contract are for reference only and shall not be deemed to be
a part of this Contract or to affect the meaning or interpretation hereof.
	 
	23.9	 	Each Party thereto shall bear its own costs and expenses incurred and to be incurred in
connection with the preparation of this Contract and the transactions contemplated by this Contract.
	 
	23.10	 	Without limiting Article 23.7, if any provision of this
Contract is held to be invalid,
including but not limited to the provisions on Return or schedule of capital contribution,
Party B shall indemnify Party A from all damages or disadvantages suffered. In addition, the
parent entity or committee of Party B shall grant additional benefits to Party A to put Party
A in the same position as though the provisions are of full effect.
	 
	23.11 	 	The export of the products processed or manufactured by the Company shall be subject to the
Board of Directors approval on a case-by-case basis.

27

 

	23.12	 	This Contract shall become effective on the date on which this Contract is
approved, in writing by the Parties, and by the Approval Authority.

IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be executed as of the date
first above written by their duly authorized representatives.

Infineon Technologies China Co., Ltd.

	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/  Harald Eggers	 	 
	 	By:	 	/s/  Tien Tee Pow	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

China-Singapore Suzhou Industrial Park Ventures Co., Ltd.

	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/  Wang Jinhua	 	 
	 	By:	 	/s/  Yang Jiangzhong	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

Date: July 28, 2003

28

 

First Amendment to

Cooperative Joint Venture Contract dated 28 July 2003

on the Establishment of

Infineon Technologies Suzhou Co., Ltd.

by and between

Infineon Technologies China Co., Ltd.

and

China-Singapore Suzhou Industrial Park Ventures Co., Ltd.

Dated this 24 September 2004

 

 

Table
of Contents

	 	 	 
	Preliminary Statement
	Article 1.

	 	Definitions
	Article 2.

	 	Parties
	Article 3.

	 	Changes to the Name and Address
of the Company
	Article 4.

	 	Changes to the Composition of
the Board of Directors
	Article 5.

	 	Applicable Law
	Article 6.

	 	Miscellaneous

1

 

Preliminary Statement to this First Amendment

THIS FIRST AMENDMENT TO COOPERATIVE JOINT VENTURE CONTRACT
(this “First Amendment”) dated 28th day of July, 2003 (hereinafter “CJV”)) is
entered into on 24 September 2004 in accordance with the Law on Sino-foreign Cooperative
Joint Ventures of the People’s Republic of China and other applicable Chinese laws and
regulations by and between Infineon Technologies China Co., Ltd. (“Party A”), a holding
company with limited liability formed in PRC whose principal office is located at No. 7, Lane
647 Song Tao Road, Zhangjiang Hi-tech Park, Pudong New District, Shanghai, PRC, and
China-Singapore Suzhou Industrial Park Ventures Co., Ltd (“Party B”), a limited liability
company duly organized and validly existing under the laws of China whose principal office is
located at 11th Floor International Building, #2 Suhua Road Suzhou
Industrial Park, Jiangsu, PRC.

The Parties hereby agree to amend the CJV to effect a change in the address of Infineon
Technologies Suzhou Co., Ltd. (“Company”) and a change in the composition of the board of
directors of the Company established on 28 July 2003, on the terms and conditions set forth
below.

Article 1 Definitions

Unless the terms or the context of this Contract otherwise provide, all capitalized terms shall
have the same meaning as defined in the CJV.

Article 2 Parties

	 	 	 	 	 	 	 	 	 
	2.1	 	The Parties to this First Amendment are:  
	 	 	 
	 	 	 	 	 	 
	 	 	Party A:
	 	Infineon Technologies China Co., Ltd.	 	 	 	 
	 	 	Place of Registration:
	 	No. 7, Lane 647 Song Tao Road, Zhangjiang	 	 	 	 
	 	 	 
	 	Hi-tech    Park,     Pudong     New District,	 	 	 	 
	 	 	 
	 	Shanghai, PRC	 	 	 	 
	 	 	Legal Address:
	 	No. 7, Lane 647 Song Tao Road, Zhangjiang	 	 	 	 
	 	 	 
	 	Hi-tech     Park,     Pudong     New District,	 	 	 	 
	 	 	 
	 	Shanghai, PRC	 	 	 	 
	 	 	Legal Representative:
	 	Name:                   LOH Kin Wah	 	 	 	 
	 	 	 
	 	Position:             Chairman	 	 	 	 

2

 

	 	 	 	 	 	 	 	 	 
	 	 	 
	 	Nationality:           Malaysian	 	 	 	 
	 	 	 
	 	 	 	 	 	 
	 	 	Party B:
	 	China-Singapore   Suzhou   Industrial Park	 	 	 	 
	 	 	 
	 	Ventures Co., Ltd.	 	 	 	 
	 	 	Place of Registration:
	 	11th Floor International Building, #2 Suhua	 	 	 	 
	 	 	 
	 	Road Suzhou Industrial Park, Jiangsu, PRC	 	 	 	 
	 	 	Legal Address:
	 	11th Floor International Building,  #2 Suhua	 	 	 	 
	 	 	 
	 	Road Suzhou Industrial Park, Jiangsu. PRC	 	 	 	 
	 	 	Legal Representative:
	 	Name:                    WANG Jinghua	 	 	 	 
	 	 	 
	 	Position:                   Chairman	 	 	 	 

	2.2	 	Representations and Warranties

	 	(a)	 	Each Party hereby represents and warrants to the other Party
that:

	 	(a)	 	it has the full right, power and authority to execute this
First Amendment; and
	 
	 	(b)	 	its legal representative named above is duly authorized and
empowered to sign, execute and give effect to the First Amendment.

	2.3	 	The Parties shall further execute on the First Amendment to the Articles of
Association of the Company and to take such steps as well as to cause the Company to take
such steps as may be necessary to give effect to the amendment intended by Articles 3 and
4 herein.

Article 3 Name and Address of the Company

The last sentence of Article 3.3 of the CJV shall be amended as follows:

“The legal address of the Company shall be No. 133, Changyang Street, Suzhou
Industrial Park, Suzhou, Jiangsu, PRC.”

Article 4 Composition of the Board of Directors

The first sentence of Article 10.1(b) of the CJV shall be amended as follows:

3

 

“The Board of Directors shall be composed of eight (8) Directors of which seven (7)
Directors shall be appointed by Party A, one (1) Director by Party B.”

Article 5 Applicable Law

The validity, interpretation and implementation of this First Amendment shall be governed by
the Laws and Regulations, but in the event that there are no Laws and Regulations governing a
particular matter relating to this First Amendment, reference shall be made to general
international commercial practices.

Article 6 Miscellaneous

This First Amendment is written in the English language in seven (7) originals, one (1) for
each Party and the Company and four (4) for the Approval Authority and in the Chinese language in
seven (7) originals, one (1) for each Party and the Company and four (4) for the Approval
Authority. Both the Chinese language and the English language versions shall be equally authentic.

4

 

IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be executed as of the
date first above written by their duly authorized representatives.

	 	 	 	 	 
	Infineon Technologies China Co., Ltd.	 	 
	 
	 	 	 	 
	[SEAL]
	 	 	 	 
	 
	 	 	 	 
	By:

	 	[ILLEGIBLE]	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	China-Singapore Suzhou Industrial Park Ventures Co., Ltd.	 	 
	 
	 	 	 	 
	[SEAL]
	 	 	 	 
	 
	 	 	 	 
	By:

	 	[ILLEGIBLE]	 	 
	 

	 	 	 	 

5

 

 

 

2

 

3

 

4

 

5

 

Second Amendment to

Cooperative Joint Venture Contract dated 28 July 2003

on the Establishment of

Infineon Technologies Suzhou Co., Ltd.

by and between

Infineon Technologies China Co., Ltd.

and

China-Singapore Suzhou Industrial Park Ventures Co., Ltd,

Dated this March 15, 2005

 

 

Table
of Contents

	 	 	 
	Preliminary
Statement
	Article 1.

	 	Definitions
	Article 2.

	 	Parties
	Article 3.

	 	Composition of the Board of
Directors
	Article 4.

	 	Applicable Law
	Article 5.

	 	Miscellaneous

1

 

Preliminary Statement to this Second Amendment

THIS SECOND AMENDMENT TO COOPERATIVE JOINT VENTURE CONTRACT
(this “Second Amendment”) dated 28th day of July, 2003 (hereinafter “CJV”) is
entered into on         March 2005 in accordance with the Law on Sino-foreign
Cooperative Joint Ventures of the People’s Republic of China and other applicable Chinese laws and
regulations by and between Infineon Technologies China Co., Ltd. (“Party A”), a holding company
with limited liability formed in PRC whose principal office is located at No. 7, Lane 647 Song Tao
Road, Zhangjiang Hi-tech Park, Pudong New District, Shanghai, PRC, and China-Singapore Suzhou
Industrial Park Ventures Co., Ltd. (“Party B”), a limited liability company duly organized and
validly existing under the laws of China whose principal office is located at 11th
Floor International Building, #2 Suhua Road Suzhou Industrial Park, Jiangsu, PRC.

The Parties hereby agree to amend the CJV to effect a change in the composition of the board of
directors of the Company established on 28 July 2003, on the terms and conditions set forth below.

Article 1 Definitions

Unless the terms or the context of this Contract otherwise provide, all capitalized terms shall
have the same meaning as defined in the CJV.

Article 2 Parties

	 	 	 	 	 	 	 	 	 
	2.1	 	The Parties to this Second Amendment are:  
	 	 	 
	 	 	 	 	 	 
	 	 	Party A:
	 	Infineon Technologies China Co., Ltd	 	 	 	 
	 	 	 
	 	 	 	 	 	 
	 	 	Place of Registration:
	 	No. 7, Lane 647 Song Tao Road,
Zhangjiang	 	 	 	 
	 	 	 
	 	Hi-tech    Park,     Pudong     New    District,	 	 	 	 
	 	 	 
	 	Shanghai, PRC	 	 	 	 
	 	 	Legal Address:
	 	No. 7, Lane 647 Song Tao Road,
Zhangjiang	 	 	 	 
	 	 	 
	 	Hi-tech Park, Pudong New District,	 	 	 	 
	 	 	 
	 	Shanghai, PRC	 	 	 	 
	 	 	Legal Representative:
	 	Name:                LOH Kin Wah	 	 	 	 
	 	 	 
	 	Position:                Chairman	 	 	 	 
	 	 	 
	 	Nationality:             Malaysian	 	 	 	 

2

 

	 	 	 	 	 	 	 	 	 
	 	 	Party B:
	 	China-Singapore   Suzhou   Industrial Park	 	 	 	 
	 	 	 
	 	Ventures Co., Ltd,	 	 	 	 
	 	 	Place of Registration:
	 	11th Floor International Building, #2 Suhua	 	 	 	 
	 	 	 
	 	Road Suzhou Industrial Park, Jiangsu, PRC	 	 	 	 
	 	 	Legal Address:
	 	11th Floor International Building, #2 Suhua	 	 	 	 
	 	 	 
	 	Road Suzhou Industrial Park, Jiangsu, PRC	 	 	 	 
	 	 	Legal Representative:
	 	Name:                WANG Jinghua	 	 	 	 
	 	 	 
	 	Position:                 Chairman	 	 	 	 

	2.2	 	Representations and Warranties

	 	(a)	 	Each Party hereby represents and warrants to the other Party
that:

	 	(i)	 	it has the full right, power and authority to execute this
Second Amendment; and
	 
	 	(ii)	 	its legal representative named above is duly authorized
and empowered to sign, execute and give effect to the Second Amendment.

	2.3	 	The Parties shall further execute the Second Amendment to the Articles of Association of
the Company and to take such steps as well as to cause the Company to take such steps as
may be necessary to give effect to the amendment intended by Article 3 herein.

Article 3 Composition of the Board of Directors

The first sentence of Article 10.1(b) of the CJV shall be amended as follows:

“The Board of Directors shall be composed of six (6) Directors of which five (5) Directors
shall be appointed by Party A, one (1) Director by Party B.”

Article 4 Applicable Law

The validity, interpretation and implementation of this Second Amendment shall be
governed by the Laws and Regulations, but in the event that there

3

 

are no Laws and Regulations governing a particular matter relating to this Second Amendment,
reference shall be made to general international commercial practices.

Article 5 Miscellaneous

This Second Amendment is written in the English language in seven (7) originals, one (1) for
each Party and the Company and four (4) for the Approval Authority, and in the Chinese language in
seven (7) originals, one (1) for each Party and the Company and four (4) for the Approval
Authority. Both the Chinese language and the English language versions shall be equally authentic.

4

 

IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be executed as of the
date first above written by their duly authorized representatives.

	 	 	 	 	 
	Infineon Technologies China Co., Ltd,	 	 
	 
	 	 	 	 
	[SEAL]
	 	 	 	 
	 
	 	 	 	 
	By:

	 	[ILLEGIBLE]	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	China-Singapore Suzhou Industrial Park Ventures Co., Ltd.	 	 
	 
	 	 	 	 
	[SEAL]
	 	 	 	 
	 
	 	 	 	 
	By:

	 	[ILLEGIBLE]	 	 
	 

	 	 	 	 

5

 

 

 

2

 

3

 

4

 

Third Amendment to

Cooperative Joint Venture Contract Dated 28 July 2003

On the Establishment of

Infineon Technologies (Suzhou) Co., Ltd.

(hereinafter referred to as the “Company”)

by and between

Infineon Technologies Central B.V.

AND

China-Singapore Suzhou Industrial Park Venture Co., Ltd.

Dated 13th March 2006

 

 

Table of Contents

Preliminary Statement

	 	 	 
	Article 1.

	 	Definitions
	Article 2.

	 	Parties
	Article 3.

	 	Assignment
	Article 4.

	 	Applicable Law
	Article 5.

	 	Miscellaneous

 

 

Preliminary Statement to this Third Amendment

     This Third Amendment to Cooperative Joint Venture Contract (this “Third Amendment”) dated
28th day of July, 2003 (hereinafter “CJV”) is entered into on 13th March 2006, in
accordance with the “Law of the Cooperative Joint Venture of the People’s Republic of China, by and
between (1) Party A, Infineon Technologies China Co., Ltd, a holding company with limited liability
formed in China, whose principal office is located at No. 7, Lane 647, Song Tao Road, Zhang Jiang
Hi-Tech Park, Pudong Shanghai, (2) Party B, China-Singapore Suzhou Industrial Park Ventures Co.,
Ltd, PRC, a limited liability company duly organized and validly existing under the laws of China
whose principal office is located at
9th Floor Zhi Ye Plaza, 158# Wangdun Road, Suzhou
Industrial Park, Jiangsu, PRC and (3)Party C, Infineon Technologies Central B.V., Netherlands, a
holding company with limited liability formed in Netherlands, whose principal office is located at
Westblaak 32, NL-3012 KM Rotterdam, The Netherlands, and

     The Parties hereby agree to amend the CJV by assigning the CJV from Party A to Party C, concerning
Infineon Technologies (Suzhou) Co., Ltd. (hereinafter the
“COMPANY”), established on 28 July 2003,
on the terms and conditions set forth below.

Article 1 Definitions

     Unless the terms or the context of this Third Amendment otherwise provide, all capitalized terms
shall have the same meaning as defined in the CJV.

Article 2 Parties

2.1 The Parties to this Third Amendment are:

     Party A: Infineon Technologies China Co. Ltd. (hereinafter IFCN)

     Place of Registration: No. 7, Lane 647, Song Tao Road, Zhang Jiang Hi-Tech Park,

     Pudong

     Legal Representative: Mr. Pow Tien Tee

     Party B: China-Singapore Suzhou Industrial Park Ventures Co., Ltd.

Place of Registration: 9th Floor Zhi Ye Plaza, 158# Wangdun Road,

Suzhou Industrial Park,

Jiangsu, PRC

 

 

Legal Address: 9th Floor Zhi Ye Plaza, 158# Wangdun Road,

Suzhou Industrial Park,

Jiangsu, PRC

     Legal Representatives:  Name: LIN Xianghong

Profession: Chairman of the Board of Directors

Nationality: Chinese

     Party C: Infineon Technologies Central B.V. (hereinafter IFCBV)

     Place of Registration: Westblaak 32

NL-3012 KM Rotterdam

The Netherlands

     Legal Address: Westblaak 32

NL-3012 KM Rotterdam

The Netherlands

     Legal Representatives:

	 	1.	 	Name: Robert Hawliczek

Profession: Company Executive

Nationality: German
	 
	 	2.	 	Name: Marlies Schneider

Profession: Company Executive

Nationality: German

2.2 Representative and Warranties

	 	(a)	 	Each Party hereby represents and warrants to the other Parties that:

	 	(i)	 	it has the full right, power and authority to execute this Third Amendment; and
	 
	 	(ii)	 	its legal representative named above is duly authorized and empowered to sign, execute
and give effect to the Third Amendment.

2.3 The Parties shall further execute on this Third Amendment to the Articles of Association of the
Company.

2.4 The abbreviation of IFCBV shall replace IFCN throughout the CJV of the COMPANY.

Article 3 Assignment

     With effect from 1st April 2006, the Parties agree that the CJV shall be assigned

 

 

from Party A to Party C and all the terms and conditions of the CJV shall apply to Party C, in
place of Party A, provided that the original approval authority has granted approval on the share
transfer between Party A and Party C. Party B agrees that it shall look to Party C as its contract
partner for the CJV from
1st
April 2006.

Article 4 Applicable Law

     The validity, interpretation and implementation of this Third Amendment shall be governed by the
Laws and Regulations, but in the event that there are no Laws and Regulations governing a
particular matter relating to this Third Amendment, reference shall be made to general
international commercial practices.

Article 5 Miscellaneous

5.1 This Third Amendment is written in the English language in seven (7) originals, one (1) for
each Party and the Company and four (4) for the Approval Authority, and in the Chinese language in
seven (7) originals, one (1) for each Party and the Company and four (4) for the Approval
Authority. Both the Chinese language and the English language versions shall be equally authentic.

5.2 This Third Amendment shall become effective upon the approval by the original approval
authority.

     In WITNESS WHEREOF, the Parties hereto have caused this Third Amendment to be executed as of the
date first above written by their duly authorized
representatives.

 

 

[execution page]

Infineon Technologies Central B.V.

	 	 	 	 	 
	By
	 	/s/ [ILLEGIBLE]
 

	 	 

China-Singapore Suzhou Industrial Park Ventures Co., Ltd

 

[SEAL]

	 	 	 	 	 
	By

	 	/s/ [ILLEGIBLE]
 

	 	 

Witnessed by

Infineon Technologies China Co., Ltd

	 	 	 	 	 
	[SEAL]
	 	 
	 
	By

	 	 

	 	 

 

 

Fourth Amendment to

Cooperative Joint Ventures Contract Dated 28 July 2003

On the Establishment of

Infineon Technologies (Suzhou) Co., Ltd.

(hereinafter referred to as the “Company”)

by and between

Infineon Technologies Central B. V.

AND

China-Singapore Suzhou Industrial Park Ventures Co., Ltd.

Dated April 18 2006

 

 

Table of Contents

Preamble

	 	 	 
	Article 1.

	 	Definitions
	Article 2.

	 	Parties
	Article 3.

	 	Change of Name
	Article 4.

	 	Applicable Law
	Article 5.

	 	Miscellaneous

 

 

Preamble

     This Fourth Amendment to Cooperative Joint Ventures Contract (this “Fourth Amendment”) dated
28th day of July, 2003 (hereinafter “CJV”) is entered into on April 18 2006, in
accordance with the “Law of the Cooperative Joint Ventures of
the People’s Republic of China,” by
and between (1) Party A, Infineon Technologies Central B. V., Netherlands, a holding company with
limited liability formed in Netherlands, whose principal office is located at Westblaak 32,
NL-3012 KM Rotterdam, The Netherlands, and (2) Party B, China-Singapore Suzhou Industrial Park
Ventures Co., Ltd, PRC, a limited liability company duly organized
and validly existing under the laws of China whose principal office
is located at 9th Floor Zhi Ye Plaza, 158# Wangdun
Road Suzhou Industrial Park, Jiangsu, PRC.

Article 1
Definitions

     Unless
the terms or the context of this Fourth Amendment otherwise provide, all capitalized
terms shall have the same meaning as defined in the CJV.

Article 2 Parties

2.1 The Parties to this Fourth Amendment are:

     Party A: Infineon Technologies Central B. V.

     Place of Registration: Westblaak 32

NL-3012 KM Rotterdam

The Netherlands

     Legal Address: Westblaak 32

NL-3012
KM Rotterdam

The Netherlands

     Legal Representatives:

	 	1.	 	Name: Robert Hawliczek

Profession: Company Executive

Nationality: German
	 
	 	2.	 	Name: Marlies Schneider

Profession: Company Executive

Nationality: German

     Party B: China-Singapore Suzhou Industrial Park Ventures Co., Ltd.

Place of Registration: 9th Floor Zhi Ye Plaza, 158# Wangdun Road

 

 

Suzhou Industrial Park

Jiangsu, PRC

     Legal Address: 9th Floor Zhi Ye Plaza, 158# Wangdun Road

Suzhou Industrial Park,

Jiangsu, PRC

     Legal Representatives:  Name: LIN Xianghong

Profession: Chairman of the Board of Directors

Nationality: Chinese

2.2 Representative and Warranties

	 	(a)	 	Each Party hereby represents and warrants to the other Party that:

	 	(i)	 	it has the full right, power and authority to execute this
Fourth Amendment; and
	 
	 	(ii)	 	its legal representative named above is duly authorized and
empowered to sign, execute and give effect to the Fourth Amendment.

2.3 The Parties shall further execute the Fourth Amendment to the Articles of Association of the
Company.

Article 3 Change of Name

     With effect from the issuance of the new Business License, the Parties agree that the name of the
Company shall be changed from “Infineon Technologies Suzhou Co., Ltd.” to “Qimonda Technologies
(Suzhou) Co., Ltd.”. “Qimonda Technologies (Suzhou) Co., Ltd.” will replace “Infineon Technologies
(Suzhou) Co., Ltd.”
throughout the CJV.

Article 4 Applicable Law

     The validity, interpretation and implementation of this Fourth Amendment shall be governed by the
Laws and Regulations, but in the event that there are no Laws and Regulations governing a
particular matter relating to this Fourth Amendment, reference shall be made to general
international commercial practices.

Article 5 Miscellaneous

5.1 This Fourth Amendment is written in the English language in six (6) originals, one (1) for each
Party and the Company and four (4) for the Approval Authority, and in the Chinese language in six
(6) originals, one (1) for each Party and the Company and four (4) the Approval Authority. Both the
Chinese language and the English

 

 

language versions shall be equally authentic.

	5.2.	 	This Fourth Amendment shall become effective upon the approval by the original approval
authority.

          In WITNESS WHEREOF, the Parties hereto have caused this Fourth Amendment to be executed as of
the date first above written by their duly authorized representatives.

[NO CONTENTS BELOW]

 

 

[EXECUTION PAGE]

Shareholder;

Infineon Technologies Central B.V.

	 	 	 	 	 
	By

	 	/s/ Mr Qian Ziyan
 

Name: Mr Qian Ziyan

(Under Power of Attorney)
	 	 

China-Singapore Suzhou Industrial Park Ventures Co., Ltd

[SEAL]

	 	 	 	 	 
	By

	 	/s/ Mr. Lin Xianghong
 

Name: Mr. Lin XianghongEX-10.I.Q

 

Exhibit 10(i)(Q)

Master IT Cost Sharing Agreement

by and between

Infineon Technologies AG, Munich, Germany

- hereinafter referred to as “IFAG” -

and

Qimonda AG, Munich, Germany

- hereinafter referred to as “MPAG” -

- IFAG and MPAG may hereinafter be collectively referred to as the “Parties” and severally referred

to as a “Party” -

PREAMBLE

	1.	 	With effect as of May 1, 2006, Infineon Technologies AG and its Subsidiaries have transferred
their worldwide activities in the field of developing, manufacturing, marketing and selling
memory products and technologies into Qimonda AG and its Subsidiaries.

	2.	 	Although Qimonda AG and its Subsidiaries shall to the extent reasonably feasible develop
their business independent from Infineon Technologies AG and its Subsidiaries, various Shared
IT Services are required in order to ensure cost-efficient operations within the two groups.

	3.	 	The Parties intend to provide a standardized and balanced legal framework for such Shared IT
Services, and to provide such Shared IT Services on the terms and conditions as more
particularly described and set out in this Master IT Cost Sharing Agreement (“MICSA”).

	4.	 	Cooperating as a pool, the Parties may provide and/or use a number of different Shared IT
Services described in Exhibit 4, Shared IT Services Catalogue, attached to and made a part of
this MICSA by reference therein (“Exhibit 4”). The Shared IT Services are provided in the
common interest and for the common benefit of the Parties by one Party or both Parties.

 

 

	5.	 	The costs arising in connection with provision of the Shared IT Services are to be borne
jointly by the Parties as the beneficiaries, as described in this MICSA

MPAG and IFAG therefore agree as follows:

	1.	 	SCOPE AND CONTRACTUAL STRUCTURE
	 
	1.1	 	Defined Terms
	 
	 	 	In this MICSA, capitalized expressions shall have the meanings set forth in Exhibit 1, unless
the Parties’ contrary intention or context requires otherwise.
	 
	1.2	 	Frame Character of this MICSA
	 
	 	 	This MICSA sets forth the terms and conditions governing all worldwide Shared IT Services, and
shall be effective for any such Shared IT Services without the necessity of referring
explicitly to this MICSA. The scope of the Shared IT Services, the applicable remuneration for
the Shared IT Services, as well as other service-specific regulations is agreed in Exhibit 4.
	 
	 	 	Standard or other terms and conditions of Infineon Group or Qimonda Group (e.g., such as terms
and conditions attached to a purchase order) shall not be applicable to this MICSA unless
incorporated into this MICSA by a duly executed Amendment to this MICSA, even if the other
Party has not explicitly objected to them.
	 
	1.3	 	Order of Priority
	 
	 	 	In the event of a conflict between the terms and conditions of the documents executed pursuant
to this MICSA, precedence in the following order shall apply, unless provided otherwise herein
(listed in order of priority):

	 	(a)	 	Amendments of this Master IT Cost Sharing Agreement;

	 
	 	(b)	 	Master IT Cost Sharing Agreement;

	 	 	In case of conflicts between the Master IT Cost Sharing Agreement and its Exhibits,
Appendices, Addenda or Attachments, except where these are designed to amend the Master IT
Cost Sharing Agreement, the terms of the Master IT Cost Sharing Agreement document itself
shall prevail.
	 
	1.4	 	Modifications to this MICSA
	 
	 	 	Modifications to this MICSA are to be made by Amendments.

2

 

	2.	 	PLACE AND NATURE OF PERFORMANCE, SUBCONTRACTORS
	 
	2.1	 	Unless otherwise agreed in writing, the place of performance of the Shared IT Services shall
be at the office of the respective entity performing or contributing to the Shared IT Service.
	 
	2.2	 	Unless otherwise agreed in writing, the Shared IT Services shall be provided in a form which
is common for such Shared IT Services in the general course of business.
	 
	2.3	 	Unless otherwise agreed in writing, the Party performing or contributing to the Shared IT
Service may either provide or contribute the respective Shared IT Services itself or through
an affiliated or non-affiliated subcontractor. In case the Party intends to enter into a new
agreement with a non-affiliated subcontractor for certain Shared IT Services which have so far
been provided by the Party itself, or extend or otherwise renegotiate a pre-existing agreement
with a non-affiliated subcontractor, the Parties shall seek mutual agreement on the
subcontractor and on the terms under which the Shared IT Services may be subcontracted. In
case the Parties do not agree on such matters within 8 weeks, either of them may – within 14
days after the effort to agree on subcontracting failed – terminate the respective Shared IT
Services by written notice upon 90 days prior written notice.
	 
	2.4	 	To the extent that a non-affiliated subcontractor is providing or contributing to the Shared
IT Service, the terms of the subcontract, especially cooperation obligations, liability,
confidentiality, applicable law (but except for pricing, payment terms and dispute
resolution), shall prevail over any conflicting provisions in this MICSA. Notwithstanding
anything to the contrary contained herein, the Party subcontracting the performance or
contribution to a Shared IT Service shall, at all times, remain fully responsible and liable
for their part in any Shared IT Services provided hereunder.
	 
	3.	 	LIABILITY
	 
	3.1	 	In the performance of the Shared IT Services and related obligations pursuant to this MICSA,
both Parties and their Subsidiaries shall only be obliged to accept responsibility for the
level of care which it also customarily applies in its own matters.
	 
	3.2	 	If any Shared IT Services are not performed at the proper time or are performed in a faulty
manner and the service providing entity is responsible for the delay or faulty performance, it
shall be obliged to remedy and perform the required Shared IT Services in a satisfactory
manner within a reasonable period of time.
	 
	3.3	 	Any liability for damages on the basis of this MICSA shall be excluded to the
extent that is legally permissible.

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	3.4	 	In case one Party has subcontracted all or parts of the performance or contribution to the
Shared IT Services to a Third Party, the other Party may request the assignment of the right
to claim compensation for damages the Party subcontracting incurred due to delay, faulty
performance or other breaches of the subcontract.
	 
	4.	 	REMUNERATION
	 
	4.1	 	Pricing
	 
	 	 	The Parties agree to share the Total Cost related to the provision of the Shared IT Services
rendered under this MICSA, taking into account fixed and variable costs. The Parties have
internally and externally examined the Shared IT Services and determined that there are three
categories of Shared IT Services: revenue driven, user driven and technology driven. Each
category accounts for approximately one third of the Shared IT Services. The Parties have
further examined the split between fixed and variable cost for each category of Shared IT
Service and determined the following split of fixed versus variable costs by category:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Category	 	 	 	 	 	Fixed Costs	 	Variable Costs
	Revenue Driven
	 	 	1/3	 	 	 	20	%	 	 	80	%
	User Driven
	 	 	1/3	 	 	 	50	%	 	 	50	%
	Technology Driven
	 	 	1/3	 	 	 	90	%	 	 	10	%
	Average
	 	 	 	 	 	 	53.3	%	 	 	46.7	%

	 	 	Using the above average percentages as a basis, the Parties agree that the Total Costs will be
shared as follows:

(a) The amount of Total Cost of Shared IT Services will be first split between fixed costs
and variable costs based upon the above percentages, i.e., 53.3% of Total Costs shall be
deemed to be “Fixed Costs,” and 46.7% of Total Costs shall be deemed to be “Variable Costs.”

(b) The amount of Fixed Costs computed in accordance with Section 4.1 (a) above shall be
shared between IFAG and MPAG in accordance with the same methodology that IFAG has allocated
Central Service Providers costs (including IT) until April 30, 2006. This methodology is
described in Exhibit 3, resulting in the mutual agreement between the Parties that 51% of
the Fixed Costs will be allocated to IFAG, and 49% thereof to MPAG (see table in section 5
of Exhibit 3). It is agreed that these percentages for sharing of Fixed Costs will remain
in effect for the life of this MICSA.

(c) The total amount of Variable Costs computed in accordance with Section 4.1 (a) above
shall be shared between IFAG and MPAG in accordance with certain “Volume Indicators” which
are more specifically explained in Exhibit 4 – Shared IT Services Catalogue. Because

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it is impossible to identify the individual variable portion of Total Cost per Shared
IT Service, the Parties agree to compute one overall percentage (the “Variable Cost Share
Percentage”) to be applied to the total of all Variable Costs to determine each Party’s
respective share thereof. Because changing business conditions may result in changes to the
Volume Indicators over time, the Parties agree that each Party’s share of the Variable Costs
may be adjusted from time to time as mutually agreed (but at minimum each fiscal year), consistent with the provisions of Section 4.2,
Adjustment Clause.

The
respective share to be paid by each Party shall be based on the
actual Total Cost incurred in rendering the Shared IT Services.

For the purpose hereof, “Total Cost” shall mean the sum of:

	 	-	 	Gross personnel expenses including personnel total target
compensation and benefits (e.g., social security)
	 
	 	-	 	Related travel and entertainment expenses
	 
	 	-	 	Infrastructure cost adder for rent, facility services, infrastructure
and IT based on local average adders of the entity providing services
	 
	 	-	 	Overhead cost adder for management and other overhead functions based
on average adder of the entity providing services
	 
	 	-	 	External expenses related to respective Services
	 
	 	-	 	Depreciation
and amortization of assets that are related to the Shared IT Services.

	4.2	 	Adjustment clause
	 
	 	 	The Parties commit themselves to entering into negotiations regarding the adjustment of the
Exhibit 4 –Shared IT Services Catalogue, in particular concerning the Volume Indicators, noted
in Exhibit 4 –Shared IT Services Catalogue, in case the contractual basis has changed
significantly.
	 
	 	 	Once a year, typically during the annual budget planning (Apr – Jul) but latest till September
30 of each year, the Parties shall review and mutually agree on the individual Shared IT
Services, the Volume Indicators  and, the planned consumption volume applicable from October 1 until September 30 of
the following year.
	 
	4.3	 	Invoicing
	 
	 	 	Unless otherwise agreed in writing, the remuneration for any individual Shared IT Services
shall be invoiced quarterly in arrears and be paid within 30 days of receipt of the invoice.

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	4.4	 	Currency
	 
	 	 	All amounts due hereunder shall be invoiced and paid in the Euro currency.
	 
	4.5	 	Taxes, Customs Duties and Other Charges
	 
	 	 	Except for VAT, any prices and charges include all taxes, customs duties or other charges
levied against the prices or charges by governmental authorities.
	 
	4.6	 	Other Changes in Scope
	 
	 	 	Any Change in the scope of Shared IT Services described in Exhibit 4 shall be subject to
adjustments and will be dealt with in accordance with the Change Management Process.
	 
	5.	 	RESPONSIBILITIES OF BOTH PARTIES
	 
	5.1	 	General Principle
	 
	 	 	The Parties agree to work closely together. Each Party shall promptly inform the other Party
of any developments that may affect the contractual obligations of the other Party, including
but not limited to potential business changes to Volume Indicators (e.g., significant increase
or reduction of consumption). Each Party shall inform the other Party in writing immediately
upon becoming aware of any impending breach of duty on the part of the other Party.
	 
	5.2	 	Statutory Obligations and Orders by Authorities
	 
	 	 	Each Party shall support the other Party in complying with all statutory obligations and
orders of authorities. Each Party shall provide the other Party with any documents or
information required to that effect. The foregoing shall not affect the Parties’ obligation to
fulfil their respective legal obligations.
	 
	5.3	 	Work at Qimonda Group or Infineon Group Locations
	 
	 	 	If a Party is granted access to the other Party’s sites, network and computing facilities
(which requires such Party’s prior written consent), such access may be used only for the
purpose of performing the Shared IT Services. The Party granted such access shall comply with
all the other Party’s security and access requirements.
	 
	5.4	 	Use of Qualified Personnel
	 
	 	 	The Parties shall perform all Shared IT Services with qualified personnel using the same care
and attention that each Party uses in providing similar services to its own internal users.
Each Party shall be responsible for the day-to-day management of its respective staff.
	 
	5.5	 	Compliance with Service Levels and Schedules
	 
	 	 	Each Party shall perform all Shared IT Services in accordance with the time schedule and
service levels that it delivers similar services to its own internal users.

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	 	 	The Parties shall inform each other promptly in writing if a Party anticipates or becomes
aware of any potential issues that may affect scheduled dates with regard to the Shared IT
Services.
	 
	6.	 	RIGHTS & RESPONSIBILITIES OF BOTH PARTIES
	 
	6.1	 	Audit of Shared IT Services
	 
	 	 	Each Party shall have the right to audit the other Party’s data and records related to the
Shared IT Services as reasonably required. The Party conducting such an audit shall be
required to notify the other Party in writing one month before the Party starts to conduct
such an audit. Should important business reasons justify a delay in the performance of such an
audit, the Parties will agree in good faith to an adjustment of the timing. Any auditors
requesting information from the Party being audited shall sign a non-disclosure agreement that
is satisfactory to the Party being audited.
	 
	6.2	 	Provided Items and Information
	 
	 	 	Certain Shared IT Services will require that the Parties provide certain items and information
to enable the provision of the Shared IT Services. The Parties agree to provide all such items
and information on a timely basis at no charge. The Parties agree to use all reasonable
efforts that any required decisions and tasks to be executed are completed in a timely manner.
Should a Party fail to fulfil its material duties of co-operation in the agreed manner or
within the agreed time limit, such failure shall extend the due date or affected service
levels for the performance of obligations of the other Party to the extent required as a
result of delayed performance.
	 
	6.3	 	Access to the Parties’ Premises
	 
	 	 	Each Party may elect, at its own expense, to visit those parts of the other Party’s facilities
used to provide Shared IT Services. Each Party shall grant reasonable access to the other
Party of any of its premises that are related to such Party’s performance under this MICSA.
Such access shall be granted a) with appropriate prior notice; b) in accordance with the
granting Party’s security and other visitor procedures; c) made during normal business hours
of the granting Party; and d) provided such visits do not hinder or obstruct the granting
Party in its daily operations or the timely performance of its obligations under this MICSA.
Each Party shall have the right to reasonably refuse such access for legal, or confidentiality
purposes.

Each Party will provide, at no charge to the other Party, the premises and working environment
at their respective locations to those members of the other Party’s staff who are reasonably
required to be located on such premises for purposes of providing the Shared IT Services,
including but not limited to such things as reasonable office space, office furnishings, data
center space, utilities in connection with such space. Additionally, a Party’s personnel
located at the other Party’s premises in conjunction with the Shared IT Services shall have
access to

7

 

	 	 	services such as canteen, parking and medical assistance on a comparable basis to such
services that are available to the other personnel at the subject location, at no additional
cost.
	 
	7.	 	CHANGE AND SERVICE MANAGEMENT
	 
	7.1	 	Change Management
	 
	 	 	No Change to the Shared IT Services shall be enacted unless documented and agreed by the
Parties. The Change Management Process shall be agreed as part of the Service Management
Concept to be agreed as provided herein. The Parties acknowledge and agree that Changes may
result in increase or decrease to the Total Costs and the resulting allocations charged for
the Shared IT Services, reflective of the change of scope and impact on the Total Cost.
	 
	7.2	 	Service Management
	 
	 	 	As soon as reasonably possible, the Parties will agree upon and implement a Governance
Structure and Concept which shall include but not be limited to the topics listed in Exhibit
2, Service Management.
	 
	8.	 	Intellectual Property and Infringement of Third Party rights
	 
	8.1	 	Intellectual Property
	 
	 	 	Each Party will remain the owner of its Material, any modifications thereto, and all related
Intellectual Property Rights thereto with regard to all Material provided or otherwise made
available in the course of the performance of the Shared IT Services. The Parties will grant
each other the right to use the Material provided solely to the extent necessary to provide
the Shared IT Services during the term of this MICSA.
	 
	 	 	Unless otherwise agreed in writing, any Material or related Intellectual Property Rights
developed, made, or otherwise created by the Parties or an employee or employees of the
Parties in the course of the performance of the Shared IT Services pursuant to this MICSA
(hereafter “New IP”) shall be jointly owned by each Party, and each Party shall have full,
unrestricted, and unencumbered rights to practice and exploit such New IP.
	 
	 	 	Notwithstanding the foregoing to the contrary, the following shall apply to the New IP with
regard to transfer to third parties: The Parties entered into a contribution agreement
(“Einbringungsvertrag”) dated April 25, 2006 (including its exhibits and amendments), and a subsequent
Information Technology IP amendment thereto (“Nachtrag 2”), including its respective exhibits and amendments

8

 

	 	 	(hereinafter “Amendment 2”) and any New IP shall be subject to the same regulations as
provided for in Amendment 2.
	 
	8.2	 	Software
	 
	 	 	Neither Party shall copy, modify or use any other Party’s Software without the prior written
consent of the other Party, except as otherwise mutually agreed between the Parties.
	 
	8.3	 	Trade Marks/Service marks
	 
	 	 	The Parties agree that neither the Qimonda Group nor the Infineon Group shall, without the
prior written consent of the other Party, use the name, service marks or Trade Marks of such
other Party. The Parties agree to ensure that the copyright notice and any other legend of
ownership on the original is reproduced on any copies of Material provided under this MICSA.
	 
	8.4	 	Intellectual Property Indemnity
	 
	8.4.1	 	If, in connection with the provision or use of the Shared IT Services, any claim, action or
allegation by a Third Party against a Party asserting or involving an infringement of an
Intellectual Property Right of said Third Party, the Party furnishing the alleged Infringing
Material (the “Indemnifying Party”) will defend, at its expense, and will indemnify the other
Party (the “Indemnified Party”) against any loss, cost, expense or liability arising out of
such claim, whether or not such claim is successful.
	 
	8.4.2	 	Neither Party shall be liable for the infringement to the extent that the claim, action or
allegation is based on (i) the use, license or sale of the Infringing Material in combination
with other materials (including software) not furnished by the Indemnifying Party or (ii) use,
modification, installation, implementation of the Infringing Material in a manner not allowed
under the respective license granted to the Indemnified Party or (iii) the failure to maintain
the Infringing Material according to the Indemnifying Party’s prior given written
recommendations, where without these aforesaid activities (i.e., (i) - (iii)), the claim,
allegation or action would not have arisen.
	 
	8.4.3	 	Each Party hereunder shall give the other Party prompt notice in writing of any claim or
liability hereby indemnified against by such other Party and thereupon such other Party shall
be entitled to control, and shall assume full responsibility for, the defense of such matter.
If the Indemnifying Party elects to assume such responsibility, it shall so notify the
Indemnified Party. The indemnities contained herein shall not be deemed to be a waiver of or
limitation of any other rights either Party may have including, but not limited to, rights of
indemnity or contribution.

9

 

	8.4.4	 	The Indemnified Party shall cooperate in all reasonable respects with the Indemnifying Party
and its attorneys in the investigation, trial and defense of such claim or liability and any
appeal arising thereof; provided, however, that the Indemnified Party may, at its own cost and
expense, participate, through its attorneys or otherwise, in such investigation, trial and
defense of such claim or liability and any appeal arising thereof. No settlement of a claim
that involves a remedy other than the payment of money by the Indemnifying Party shall be
entered into without the consent of the Indemnified Party. After notice by the Indemnifying
Party to the Indemnified Party of its election to assume full control of the defense of any
such claim, the Indemnifying Party shall not be liable to the Indemnified Party for any legal
expenses incurred thereafter by such Indemnified Party in connection with the defense of such
claim.
	 
	8.4.5	 	If the Indemnifying Party (i) does not decide to assume full control over the defense of a
claim subject to defense as provided in this Section, or (ii) does not adequately pursue such
defense, the Indemnifying Party may participate in such defense, at its sole cost and expense,
and the Indemnified Party shall have the right to defend such claim in the manner it deems
appropriate, at the cost and expense of the Indemnifying Party.
	 
	8.4.6	 	If an injunction or order is obtained against one Party’s use of any Infringing Material by
reason of the allegations, action or claim, or if such a claim, action or allegation is made
or if in said Party’s opinion any such Infringing Material is likely to become subject of a
claim, action or allegation of infringement or violation of an Intellectual Property Right of
a Third Party, the Indemnifying Party shall, at its option and its expense:

a) Procure for the Indemnified Party the right to continue using the Infringing Material; or

b) Replace or modify the same so that it becomes non-infringing, which modification or
replacement shall not adversely affect the applicable specifications for, or the use or
operation by the Indemnified Party of, the Infringing Material; or

c) If the Infringing Material is licensed and the other options stated are not practicable,
remove such Infringing Material from the Indemnified Party’s site(s) and refund to the
Indemnified Party any charges paid by the Indemnified Party, other than charges for any actual
period of use by the Indemnified Party, release the Indemnified Party from any further
liability hereunder and pay all costs of the Indemnified Party to secure a replacement for the
Infringing Material.

	9.	 	CONFIDENTIALITY
	 
	9.1	 	All Confidential Information received by a Party or its Subsidiaries from the other Party or
its Subsidiaries, or to which access is granted (e.g. via data banks) in connection with this
MICSA,

10

 

	 	 	even if not expressly designated as Confidential Information, shall only be used by the
receiving Party and its Subsidiaries for the performance of its obligations under this MICSA.
For as long as and to the extent that such Confidential Information is not generally known or
the respective other Party to the MICSA has not previously consented in writing to such
Confidential Information being made known, the receiving Party and its Subsidiaries shall
treat the information and documents as confidential with regard to Third Parties who are not
involved in the performance of any obligation under this MICSA.
	 
	 	 	If a Party or its Subsidiaries has to process personal data as part of this MICSA, they shall
comply with all applicable data protection legislation, agree to take required data security
measures and enable the other Party to keep itself informed regarding compliance. These
obligations shall also continue to apply after the termination of this MICSA according to the
applicable laws.
	 
	9.2	 	The Parties shall ensure that their employees, subcontractors and agents maintain the secrecy
of all Confidential information to which they have access on the basis of their work or to
which they are given access as a result of this MICSA, and the Parties shall also impose this
confidentiality obligation upon them in respect of the relevant period required under
applicable laws after the termination of their employment agreements.
	 
	9.3	 	Unauthorized Access to or Use of Confidential Information
	 
	 	 	In the event of unauthorized access or attempt to access, unauthorized use or attempt to use
Confidential Information, the relevant Party shall:

	 	(a)	 	Promptly notify the other Party in writing,
	 
	 	(b)	 	Use best efforts to cooperate with such Party in any investigation and/or
litigation against Third Parties deemed necessary by such Party to protect its
Confidential Information and proprietary rights, and/or
	 
	 	(c)	 	Use best efforts to stop and to prevent a recurrence of any such unauthorized
access or use.

	9.4	 	Return or Destruction of Confidential Information
	 
	 	 	Upon any termination of this MICSA, a Party shall, as directed by the other Party, either
return or destroy all copies (including the original) of Confidential Information that are in
such Party’s possession. In the event Confidential Information is destroyed, such Party shall
send written verification to the other Party that the destruction has been accomplished.

Notwithstanding the above, the Parties may a) maintain archival media containing any
Confidential Information if and to the extent required by mandatory applicable law or an
agreed upon quality system, b) the Parties may use such archived Confidential Information
solely for

11

 

	 	 	back-up purposes, and c) such archived Confidential Information shall be returned or destroyed
pursuant to this Section immediately upon expiration of the archival requirement.
	 
	10.	 	TERM AND TERMINATION OF THIS AGREEMENT
	 
	 	 	The term of this MICSA shall become effective as of May 1, 2006 and shall continue until it is
terminated as provided herein.
	 
	 	 	This MICSA shall terminate once all Shared IT Services (as listed in Exhibit 3) hereunder have
expired or been terminated.
	 
	 	 	Any individual Shared IT Service under this MICSA may be terminated by either of the
respective Parties to that individual Shared IT Service at any time to the end of any calendar
month by giving 90 days prior written notice, provided that there shall be no termination for
convenience prior to September 30th 2007 without mutual agreement. However, any
Shared IT Services which have been subcontracted can in no case be terminated for convenience
within a shorter notice period than set out in the respective subcontract.
	 
	 	 	Each Party shall have the right to terminate this MICSA in the event that bankruptcy,
receivership, insolvency, dissolution, liquidation or other proceedings are instituted by or
against the other Party or all or any substantial part of the other Party’s property under
applicable law.
	 
	 	 	In the event that either Party chooses to terminate any individual Shared IT Service or any
part thereof as listed in Exhibit 4, such Party shall be obliged to enter into a termination
assistance agreement with the other Party. Such termination assistance agreement shall specify
the tasks to be performed and the schedule for winding down the Shared IT Service in order to
secure the operational stability of the terminated Shared IT Service.
	 
	 	 	Such tasks shall include but shall not be limited to the following obligations if and to the
extent required by the other Party:

	 	-	 	Mutual development of a termination assistance plan
	 
	 	-	 	Continued provision of the Shared IT Service until a replacement is operational
	 
	 	-	 	Cooperation, support and know how transfer within the transition period
	 
	 	-	 	Provision of training and documentation
	 
	 	-	 	Each Party will exercise reasonable efforts to facilitate the
potential transfer of related third party license rights from itself
to the other Party as appropriate and feasible (responsibility for
any cost associated with such transfer of licenses shall be the
responsibility of the Party receiving such license rights unless
otherwise mutually agreed in the termination assistance agreement) in
order to continue the terminated Shared IT Service 
	 
	 	-	 	Where feasible and appropriate, assignment of any Third
Parties contracts applicable to the affected Shared IT Service

12

 

	 	 	If the Shared IT Service is provided by a non affiliated subcontractor, each Party shall
exercise reasonable efforts to ensure that any such subcontractor
will provide the necessary termination services to the other Party in
alignment with the termination assistance services as contemplated
herein.
	 
	 	 	Each Party understands that the terminated Party relies on the uninterrupted availability of
the Shared IT Service. Therefore the terminating Party may in no case exercise a retention
right, refuse access to facilities or systems necessary in order to operate the Shared IT
Service or retain any know how, equipment or rights necessary for the uninterrupted operation.
	 
	 	 	The termination assistance shall be remunerated according to the mutual agreement in the
termination assistance plan. This plan shall also cover the equitable sharing of potentially resulting
cost to ramp down the terminated Shared IT Service.
	 
	 	 	Each Party agrees to make commercially reasonable efforts to minimize all costs of any
termination.
	 
	11.	 	MISCELLANEOUS
	 
	11.1	 	Interpretation
	 
	 	 	The Section and Exhibit headings, the table of contents and the list of exhibits are for
reference and convenience purposes only and shall not be considered in the interpretation of
this MICSA.
	 
	11.2	 	Force Majeure
	 
	 	 	Neither Party shall be liable to the other for failure or delay in the performance of any of
its obligations under this MICSA for the time and to the extent such failure or delay is
caused by force majeure such as, but not limited to, riots, civil commotions, wars, strikes,
freight embargo, lock-outs, hostilities between nations, governmental laws, orders or
regulations, actions by the government or any agency thereof, storms, fires, sabotages,
explosions or any other contingencies beyond the reasonable control of the respective Party
and of its sub-contractors. In such events, the affected Party shall immediately inform the
other Party of such circumstances together with documents of proof and the performance of
obligations hereunder shall be suspended during, but not longer than, the period of existence
of such cause and the period reasonably required to resume performance of the Shared IT
Services in such cases. The affected Party shall take commercially reasonable steps to
mitigate damages arising out of the force majeure event.

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	11.3	 	Language and Notices
	 
	 	 	Any notices permitted or required hereunder shall be made by registered mail or by telefax and
confirmed by registered mail to the following addresses or such other addresses as submitted
by a Party to the other from time to time in writing:

	 	 	 	 
	 	If to “MPAG”:

	 	If to “IFAG”:
	 	Qimonda AG

	 	Infineon Technologies AG
	 	Attn: Legal Department

	 	Attn: Legal Department
	 	Copy to: CIO

	 	Copy to: CIO
	 	Gustav-Heinemann-Ring 212

	 	PO Box 80 09 49
	 	81739 München

	 	81609 München
	 	Germany

	 	Germany

	 	 	Copies of such notices shall be forwarded to the Relationship Manager of the other Party.
	 
	11.4	 	Export and Import Compliance
	 
	 	 	Export of controlled commodities, technical data, or information about such commodities or
data may be prohibited by law. Both Parties agree to take all steps reasonably necessary to
comply with applicable export and import laws and regulations as they apply to use and
distribution of the subject mater of this MICSA.
	 
	11.5	 	No Implied Licenses
	 
	 	 	Except if and to the extent specifically provided for in this MICSA, no rights or licenses of
any kind (whether express or implied) are granted hereunder. No right, expressed or implied,
is granted by this MICSA to a Party to use in any manner the name or any other trade name or
trademark of the other Party in connection with the performance of this MICSA.
	 
	11.6	 	Non-Waiver
	 
	 	 	No express or implied waiver by any of the Parties to this MICSA of any breach of any term,
condition or obligation of this MICSA shall be construed as a waiver of any subsequent or
continuing breach of that term, condition or obligation or of any other term, condition or
obligation of this MICSA of the same or of a different nature. Any waiver, consent, or
approval of any kind regarding any breach, violation, default, provision or condition of this
MICSA must be in writing and shall be effective only to the extent specifically set forth in
such writing.
	 
	11.7	 	Entire Agreement
	 
	 	 	This MICSA, and all documents referred to herein, constitutes the entire agreement between the
Parties with respect to the subject matter therein described, and supersedes any prior or
simultaneous communications, representations or agreements with respect hereto, whether oral
or written.

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	11.8	 	Written Form
	 
	 	 	Amendments or Changes to this MICSA shall only be valid if made in writing and duly signed by
the Parties.
	 
	11.9	 	No Assignment
	 
	 	 	Neither Party may assign this MICSA, delegate its obligations or assign its rights hereunder
without the prior written consent of the other Party, which consent will not be unreasonably
withheld.
	 
	11.10	 	No Agency
	 
	 	 	The Parties are independent contractors and nothing in this MICSA is intended or shall be
construed as one Party being an agent, partner, or joint venturer of the other Party.
	 
	11.11	 	Governing Law
	 
	 	 	This MICSA shall be subject to the substantive law in force in Germany without reference to
its conflicts of law provisions. The application of the United Nations Convention on Contracts
for the International Sale of Goods of April 11, 1980 shall be excluded.
	 
	11.12	 	Dispute Resolution and Arbitration
	 
	 	 	Any disputes arising in connection with this MICSA or relating to its validity shall be
finally decided in accordance with the arbitration regulations of the German Arbitration
Institution (Deutsche Institution für Schiedsgerichtsbarkeit e.V.), Bonn, to the exclusion of
legal proceedings. The arbitration tribunal shall also be entitled to come to a binding
decision regarding the validity of this arbitration clause. The venue of the arbitration shall
be Munich.
	 
	11.13	 	Severability
	 
	 	 	If any provision of this MICSA is held to be invalid, illegal or unenforceable under
applicable law the remaining provisions shall continue to be in full force and effect. The
Parties undertake to replace the invalid provision or parts thereof by a new provision which
will meet as closely as possible the economic effect intended by the Parties at the time of
execution of this MICSA.
	 
	11.14	 	No Exclusivity of Remedies
	 
	 	 	Unless explicitly set forth otherwise, this MICSA shall not limit any right or remedy both
Parties may have under applicable law.

15

 

     IN WITNESS WHEREOF, the Parties hereto have caused this MICSA to be executed by their
respective duly authorized representatives:

	 	 	 	 	 	 	 	 	 
	Infineon Technologies AG	 	 	 	Qimonda AG
	Munich,	 	                                         	 	 	 	Munich                                            
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/  ppa. M. Ruth	 	 	 	By:	 	/s/  ppa. Eisenschmid
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	Michael Ruth	 	 	 	Name:	 	C. Eisenschmid
	Title:
	 	Corporate Vice President	 	 	 	Title:	 	VP
	 
	 	 	 	 	 	 	 	 
	By:
	 	/s/  ppa. Schmelmer	 	 	 	By:	 	/s/  Torsten Klee
	 

	 	 
	 	 	 	 	 	 
	Name:
	 	Michael Schmelmer	 	 	 	Name:	 	 
	Title:
	 	Corporate Vice President	 	 	 	Title:	 	 

16

 

EXHIBIT
1 - DEFINITIONS:

“Affiliate”

Shall mean any company of either Party that is related to the respective Party in the sense
of §§ 15 ff. of the German Corporation Law (“Aktiengesetz”).

“Amendment”

Shall mean a document agreed by the Parties and executed hereunder, that in any way alters
(e.g., adds to, deletes from, or modifies) the terms and conditions of this MICSA.

“Business Day(s)”

Shall mean any day that a location of a Party is open for business as defined by the
operating calendar of the location of the Party where Shared IT Services are to be
performed or delivered.

“Calendar Day(s)”

Shall mean a day or days as defined in the Gregorian calendar.

“Change(s)”

Shall mean any modification to the tasks, specifications, functionalities, time schedules,
delivery dates associated with the Shared IT Services which are agreed in writing and
signed by duly authorized representatives of both Parties.

“Confidential Information”

Shall mean any technical and/or commercial information of a Party received by the other
Party in any form under or in connection with this MICSA, including information relating to
the disclosing Party’s respective businesses, facilities, products, services, techniques
and processes, whether in the form of oral disclosure, demonstration, device, apparatus,
model, sample of any kind, computer software (including, but not limited to, source code
and documentation), magnetic media, document, specification, circuit diagram, or drawing or
visual observation of the above. Confidential Information shall include any copies or
abstracts made thereof as well as any modules, samples, prototypes or parts thereof.

Confidential Information as defined above, however, does not include (i) any information in
the public domain, unless such information was made public by the other Party’s failure to
comply with its obligations under this MICSA, (ii) information already known to or in the
possession of the other Party prior to entering into this MICSA, (iii) information
independently developed by the other Party or (iv) information which is obtained by the
other Party without restriction on disclosure.

“Deliverable(s)”

Shall mean those elements of Shared IT Services which are identified in Exhibit 3, which
are to be delivered by one Party to the other in accordance with the applicable project
schedule, delivery or milestone dates.

“Infineon Group”

     Shall mean IFAG and its Subsidiaries.

“Intellectual Property Rights”

Shall mean all intellectual and industrial property rights of any kind whatsoever, now or
hereafter existing, including, without limitation patents, trade marks, service marks,
rights in designs, trade names, present and future copyrights, utility and design models
whether or not any of these are registered and including applications for any such right,
matter or thing or registration thereof, trade secrets and rights of confidence, all rights
or forms of protection of a similar nature or having equivalent or similar effect to any of
these which may subsist anywhere in the world, as well as all documents, information and
other records and data provided to the other Party in the course of the performance of the
MICSA.

“Master IT Cost Sharing Agreement” or “MICSA”

17

 

Shall mean this document and all of its Exhibits, Appendices, Addenda, Attachments and
Amendments.

“Material”

Shall mean all materials and know-how which is subject to an Intellectual Property Right,
including but not limited to Software, tools, documents, reports, data models, functional
specifications, designs, drawings, manuals and magnetic tapes as well as complete or
partial copies of the foregoing.

“Relationship Manager”

Shall mean each Party’s respective individual having the responsibilities for overall
management and governance issues related to this MICSA, as determined in accordance with
Exhibit 2.

“Qimonda Group”

     Shall mean Qimonda AG and its Subsidiaries.

“Shared IT Service(s)”

Shall mean any specialized or professional IT related service tasks defined in Exhibit 3,
Shared IT Service Catalogue.

“Service Manager”

Shall mean each Party’s respective individual having the responsibilities for a respective
Shared IT Service, as determined in accordance with Exhibit 2.

“Subsidiary”

Shall mean any company in which, presently or in the future, any Party owns more than fifty
percent (50%) of such company’s voting capital or controlling interest, provided that a
Subsidiary shall be deemed to be a Subsidiary only as long as such percentage of voting
capital or controlling interest prevails. For the purposes of this MICSA, MPAG and its
Subsidiaries shall not bee deemed to be Subsidiaries of IFAG.

“Third Party” or “Third Parties”

Shall
mean any organization(s), company (or companies) or entities other than MPAG, IFAG, or the Parties respective Subsidiaries.

“Volume Indicator”

Shall mean the specifically defined indicators for each Shared IT Service as identified and
listed in Exhibit 4.

18

 

Exhibit 2 – Service Management

The Parties agree that the following provisions will be agreed in reasonable detail in the
Service Management Concept to be negotiated and mutually agreed:

1. Designation of Key Staff.

Designation of Relationship Manager

As soon as reasonably possible, each Party shall designate in writing an individual to serve
as its Relationship Manager.

Designation of Service Manager

As soon as reasonably possible, each Party shall designate in writing an individual to serve
as its Service Manager for each Shared IT Service agreed between the Parties.

Representative Responsibilities of each Party’s Service Manager include but are not limited
to:

	 	•	 	Day-to-day management of the respective Party’s staff who are involved in the
delivery of the Shared IT Services.
	 
	 	•	 	Day-to-day management of the respective Party’s authorized subcontractors who are
involved in the delivery of the Shared IT Services.
	 
	 	•	 	Manage and ensure the timely execution of the respective Party’s responsibilities
in all service management procedures such as Contract Change Control Procedure,
Acceptance Testing, etc.
	 
	 	•	 	Ensure that agreed schedules are met.
	 
	 	•	 	Ensure that the respective Party’s proposals in response to request for Change
are delivered in accordance with the agreed procedure.
	 
	 	•	 	Ensure that confidentiality and security requirements are complied with.
	 
	 	•	 	Tracking and reporting of service levels or other of the respective Party’s
performance requirements are met.
	 
	 	•	 	Managing all of the respective Party’s responsibilities associated with delivery
of the Shared IT Services.

     Designation of other Key Staff

Each Party shall designate in writing other individuals to serve in key staff positions as
appropriate and agreed. Such key staff positions may include but are not limited to:

	 	•	 	Program Manager in the event that multiple projects are involved.
	 
	 	•	 	Project Manager for each project in the event that multiple projects are involved.
	 
	 	•	 	Members of the steering committee in situations where it is deemed necessary to
create a steering committee.
	 
	 	•	 	Senior managers named as escalation steps above the various other managers
contemplated herein.

19

 

2. Status Meetings

During the term of this MICS, each Party’s respective Service Manager and as appropriate,
other key staff involved in the performance of the relevant Shared IT Services, shall meet
regularly at a mutually agreed location, or conduct a telephone conference call, to discuss
the progress made in the performance of their respective obligations during the period since
the most recent meeting for such purpose. The frequency of such meetings will be at a
minimum every two weeks, and the topics to be discussed will include items such as:

	 	•	 	Work completed since the last meeting, with special attention paid to work planned
but not completed, including reasons for the failure to complete,
	 
	 	•	 	Problems encountered since last meeting and a review of status on all outstanding
problems;
	 
	 	•	 	Work planned to be completed by the next meeting;
	 
	 	•	 	Detailed review of relevant plans and schedules;
	 
	 	•	 	Risks identified since last meeting and a review of status of all outstanding risks;
	 
	 	•	 	Status of change control activities, including requests for Change in process, MICSA
Amendments being implemented and pending since the previous meeting, and
	 
	 	•	 	Other items as requested by each Party’s respective Service Manager or Relationship
Manager.

A record of the proceedings (including decisions taken) at each such status meeting (i.e.,
meeting minutes) shall be prepared by each Party’s Service Manager and such meeting minutes
shall be mutually agreed by the respective Service Managers of each Party.

3. Dispute Resolution

Each Party’s respective Service Manager shall promptly discuss and attempt to resolve
disputes arising out of or relating to this MICSA. Any dispute that cannot be resolved
within five (5) business days (from written notification that there is a dispute) at the
Service Manager Level shall be referred in writing to the respective Relationship Manager of
each Party. Any dispute that cannot be resolved in five (5) additional business days shall
then be referred in writing and discussed by each respective Party’s next highest ranking
management (or higher ranking as determined by the respective Party). Any dispute that
cannot be resolved within a total of twenty (20) business days from initial written
notification that there is a dispute shall then be a matter for pursuit as specified in
Section 11.12 of the MICSA, titled “Dispute Resolution
and Arbitration”. However, the above
dispute resolution rules shall not limit either Party from directly seeking legal remedies
according to Section 11.11 of the MICSA, titled
“Governing Law”.

4. Additional Service Management Provisions

In addition to the requirements and procedures identified above in this Exhibit 2, the
following procedures shall be considered for inclusion in the Service Management Concept,
details to be negotiated and mutually agreed as appropriate to the relevant Shared IT
Service:

Governance of Service Center, Location Management, Regional Management and Global Management

Escalation Management

Incident Management

20

 

Problem Management

Service Request Management

Service Level Management

Capacity Management

Availability Management

Service Continuity Management

Security Management

Change Management Process

Management of any other contractual requirement

21

 

Exhibit 3 – General Allocation Systematics for Infineon CSP

Central Service Providers (CSP) are working on strategic and/or general central functions
within IFAG or the regional organizations IF NA, IF AP, IF J, IF CN, etc. CSPs are subsumed to
clusters like IT-, Logistics- or Central Departments – within the group consolidation the values
over all responsibilities are added to a total amount by cluster and function and are allocated
centrally to product lines

The following Attachment 1 to this Exhibit 3 describes the general allocation process for Infineon
CSP cost which has been applied for the IT cost until April 30, 2006. That same process is used to
determine the allocation keys to be used for sharing of Fixed Costs pursuant to this MICSA.

22

 

Attachment 1 to Exhibit 3

1. Description of the allocation process:

     a. Purpose and objective

	 	i.	 	Infineon’s CSP costs are to be allocated to the
respective product lines (“PL”) to ensure correct recognition of segmental
financial figures in Infineon’s P&L

     b. Procedure

	 	i.	 	Defined costs are to be proportionally transferred to
product lines using specific percentages (“Allocation Keys P&L”) which are
calculated so as to reflect the respective product line’s proportional
benefit of the respective CSP.

     c. Result

	 	i.	 	Each product line will show all costs relevant for
their business, i.e., including a proportional share of costs generated by
Infineon CSPs.

2. Allocation Keys P&L – Details

     a. Calculation

	 	i.	 	Calculation of Allocation Keys shall be done once each
fiscal year, based on the Financial Rolling Forecast for June
	 
	 	ii.	 	Allocation Keys are calculated on BG level and
communicated to the respective BGs.

     b. Application

	 	i.	 	Actuals: usage of new keys (= keys for next FY) from
closing October onward (reason: consistency per quarter)
	 
	 	ii.	 	Forecast: new keys for next FY are used from
forecast RFC_Jul onwards beginning with month of

     c. Further rules

	 	i.	 	No cluster-on-cluster allocation
	 
	 	ii.	 	Allocated CSP cost shall not be born/be born by
responsible BG from quarter beginning 4.6 months after acquisition/closing
onwards respectively; in the meantime cost will be reported under CORP
there after, e.g . till the end of the running FY

3.
Allocation Keys P&L – Responsibilities

     a. For calculation and calculation methodology

	 	i.	 	PC C: Value added, IT CoS, IT R&D, R&D Central, LOG CoS, LOG S&M
	 
	 	ii.	 	MP: MH
	 
	 	iii.	 	LOG: LOG S&M (weighting Corp LOG and CLM)

	 
	 	iv.	 	CP: CCU28
	 
	 	v.	 	MSS: CCU44

     b. For usage within closing and FRFC

	 	i.	 	Actuals: PC SR
	 
	 	ii.	 	FRFC: PC C, PC SR (tool environment)

4.
Allocation Keys P&L – Overview

	 	 	 	 	 	 	 	 	 
	 	 	Base for key calculation and	 	 	Percentage	 	 
	Key	 	further details	 	 	for MP	 	Usage
	 
	 	 
	 	 	 	 	 	 
	Value Added

	 	Value added
base figures
calculated with
total sales less
total EBIT
	 	 	47,05	%	 	Selling costs and G&A costs CKTR96
	 
	IT CoS

	 	Total cost of
sales, i.e., in
proportion to
expenses per
PL
	 	 	52,82	%	 	CoS IT-cluster (CKTR96
	 
	IT R&D

	 	Total R&D
cost, i.e. , in
proportion to
expenses per
PL
	 	 	34,28	%	 	R&D costs IT Cluster (CKTR96)

5. Calculation of overall CSP cost share between Logic and MP

Based upon the figures for
Fiscal Year 05/06, application of the above percentages to the amount
for each category results in an MP share of 49.24%.

23

 

Exhibit 4
– Shared IT Services Catalogue

	 	 	 	 	 	 
	Service ID	 	Service Short Name	 	 
	OS-S1
	 	Access control systems operation	 	 	 
	OS-S2
	 	Active Directory	 	 	 
	OS-S3
	 	BP Application Access (Tarantella)	 	 	 
	OS-S4
	 	Client Services	 	 	 
	OS-S5
	 	Database services	 	 	 
	OS-S6
	 	DataCenter Facility Management	 	 	 
	OS-S7
	 	DMZ	 	 	 
	OS-S8
	 	IT OS PA support tool service	 	 	 
	OS-S9
	 	LAN	 	 	 
	OS-S10
	 	Messaging & Email	 	 	 
	OS-S11
	 	Middleware Service	 	 	 
	OS-S12
	 	Print Service	 	 	 
	OS-S13
	 	Service Desk	 	 	 
	OS-S14
	 	Terminal Server	 	 	 
	OS-S15
	 	Unix System Management	 	 	 
	OS-S16
	 	VIP Service (Board PC Support)	 	 	 
	OS-S17
	 	Voice	 	 	 
	OS-S18
	 	WAN	 	 	 
	OS-S19
	 	Webservice	 	 	 
	OS-S20
	 	Windows System Management	 	 	 
	OS-S21
	 	Storage Service	 	 	 
	OS-S22
	 	Backup & Archiving	 	 	 
	OS-S23
	 	SAP Basis1	 	 	 
	OS-S24
	 	BS2000 Service	 	 	 
	BT-A1
	 	Business to Business	 	 	 
	BT-A2
	 	Customer Relation Management	 	 	 
	BT-A3
	 	Resource Planning and Simulation	 	 	 
	BT-A4
	 	External Order Management	 	 	 
	BT-A5
	 	Provision of i2-Licences	 	 	 
	BT-A6
	 	Information and Knowledge Management	 	 	 
	BT-A7
	 	Integration	 	 	 
	BT-A8
	 	Internal Order Management	 	 	 
	BT-A9
	 	IT-Support of Financial Processes	 	 	 
	BT-A10
	 	IT-Support of Human Resources	 	 	 
	BT-A11
	 	Lotus Notes	 	 	 
	BT-A12
	 	Master Data	 	 	 
	BT-A13
	 	Purchasing	 	 	 
	BT-A14
	 	SAP-Platform	 	 	 
	BT-A15
	 	Shipment & Warehouse	 	 	 
	BT-A16
	 	IT-Support of Research & Development	 	 	 
	MFG-MBI1
	 	Finance Reporting	 	 	 
	MFG-MBI2
	 	Human Resource Reporting	 	 	 
	MFG-MBI3
	 	Logistics Reporting	 	 	 
	MFG-MBI4
	 	SAP BI Platform Management	 	 	 
	MFG-MBI5
	 	Corporate MBI Service	 	 	 
	MFG-MDA1
	 	Quality Reporting & Analysis	 	 	 

For futher details about the
Shared IT Services, please refer to the separate worksheets for each
individual service.

24

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