Document:

Foundry Agreement, dated March 31, 2005, between Spansion Japan and Fujitsu

 Exhibit 10.34 
  
 FOUNDRY AGREEMENT 
  
 **** Confidential treatment has been requested as to certain portions of this agreement. Such omitted confidential information has been designated by asterisks and has
been filed separately with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as amended, and the Commission’s rules and regulations promulgated under the Freedom of Information Act, pursuant to a
request for confidential treatment.**** 

 Exhibit 10.34 
  
 Redacted Version 
  
 Foundry Agreement 
  
 Recital : Fujitsu Limited (“FJ”) and Spansion Japan Limited (“SPANSION”) shall enter into this Foundry Agreement (“Agreement”) under which
Spansion engages in foundry activity with FJ for the manufacture of FJ products for FJ for its sale of such products to its customers and which shall supercede certain Foundry Agreement between the parties dated December 31, 2003. 
  
 Article 1 (General Terms) 
  
 This Agreement controls and governs any and all individual sales contracts executed between FJ and SPANSION. 
  
 Article 2 (Foundry Products) 
  
 Exhibit A attached hereto shows the FJ’s Flash embedded Microcontroller unit products which SPANSION manufactures for
FJ under this Agreement. Any change to FJ products shall be made by the mutual written agreement between the parties. Any evaluation for new FJ products shall be carried out in accordance with Article 3.6 below. 
  
 Article 3 (Technical Information / Process Establishment) 
  

	 	1.	FJ and SPANSION shall discuss and agree on the set of specifications including the following specifications required with respect to manufacturing FJ products at SPANSION. SPANSION
‘s original specification may be utilized if it is approved by FJ. 

  

	 	(1)	Wafer process Specification (Process Flow, PCM / SLM Specification) 

  

	 	(2)	Monitor (WET) test Program and specification for FJ products 

  

	 	(3)	Packing specification for FJ products 

  

	 	(4)	Purchase Specifications for FJ products. 

  

	 	(5)	Engineering Change Notice (ECN) Procedure 

  

	 	(6)	Other specifications to be mutually agreed upon by the parties 

  

	 	2.	In case either party finds that there needs any change or addition to the agreed specifications, such party shall notify the other party in wiring of such change and obtain the
other party’s written approval in advance. 

  

	 	3.	Based on the agreed specifications set forth in Article 3.1 above, SPANSION shall establish a certain manufacturing process, fabricate samples of FJ products with such manufacturing
process and deliver such samples to FJ in accordance with the Qualification Plan to be agreed upon between the parties. 

  

	 	4.	FJ shall evaluate the samples provided by SPANSION in accordance with the Qualification Plan. If FJ determines that such samples meet the specifications for the FJ products and
satisfy the quality requirements of FJ, FJ shall notify SPANSION in writing of such determination. Such written notice shall serve the official notification that the manufacturing process established and FJ Products produced at SPANSION is fully
qualified by FJ and SPANSION (such manufacturing process shall be referred to as “Qualified Process”). 

	 	5.	In case FJ requests SPANSION to produce FJ products before such products are qualified by FJ, the required terms and conditions on FJ products and on SPANSION process shall be
discussed and determined by both parties in good faith. 

  

	 	6.	In case it is agreed between FJ and SPANSION to add new products to Exhibit A in accordance with Article 2 of this Agreement, FJ and SPANSION shall agree on the specifications
described in Article 3.1 above for such new product. FJ and SPANSION shall further agree on the qualification plan for such new product pursuant to Article 3.3, according to which evaluation shall be performed by FJ and SPANSION.

  

	 	7.	Unless otherwise agreed upon between the parties, the responsible party on the cost incurred in performing the work stipulated in the Qualification Plan agreed by both parties shall
be determined by following description. 

  

	 	(1)	FJ shall bear the cost for both of Engineering Lot and Qualification required by FJ. 

  

	 	(2)	SPANSION shall bear the cost for both of Engineering Lot and Qualification required by SPANSION’s own reason for increasing the production capability. 

 

	 	(3)	FJ shall bear the cost for both of Engineering Lot and Qualification required for the correction of the failure caused by the reason of the product designing.

  

	 	(4)	SPANSION shall bear the cost for both Engineering Lot and Qualification required for the correction of the failure caused by the reason of other than product designing / testing /
assembling 

  

	 	(5)	SPANSION shall bear the cost of Engineering Lot for die yield improvement, and the parties shall discuss who should bear the cost for the evaluations and others. SPANSION shall
perform yield improvement activities to improve its quality. 

  

	 	(6)	The parties shall discuss who should bear the cost required to investigate any low yield or failures due to the cause attributable to SPANSION’s manufacturing process.

  
 Article 4 (Manufacturing) 
  

	 	1.	Upon the successful establishment of Qualified Process, SPANSION shall manufacture FJ products utilizing the Qualified Process for FJ on a foundry basis. Even if the qualification
is not completed, FJ may ask SPANSION to manufacture FJ products for FJ utilizing the pre-Qualified Process on a risk start basis on the terms and conditions to be negotiated between the parties. 

  

	 	2.	SPANSION shall make best efforts to establish a production capability for FJ in accordance with the schedule to be agreed upon by the parties. 

  

	 	3.	FJ shall bear the cost of the first one set of masks, probe card for WET and WLR for SPANSION to produce FJ products for FJ. 

  

	 	4.	Unless otherwise specifically provided herein, SPANSION shall, at its own responsibility and cost, purchase or procure raw or indirect materials or labor including any supplementary
masks or probe cards for wear-out or breakage required by it to manufacture FJ products under this Agreement. 

  

	 	5.	Under the mutual agreement of both parties, FJ shall directly provide SPANSION with technical assistance required by SPANSION to manufacture FJ products for FJ.

  

	 	6.	SPANSION shall manufacture FJ products only at SPANSION, and shall not have any third party manufacturer for SPANSION without obtaining prior written consent of FJ.

  

	 	7.	SPANSION shall periodically provide FJ with the information and data, which are (1) Shipping data, (2) WIP data, (3) Inline date, (4) WET data, and so on, related to Production and
Quality, in a timely manner in the format and means to be agreed upon between the parties. 

	 	8.	SPANSION shall not supply FJ products to any third party or use those process flows for any purpose other than those permitted under this Agreement or shall not use the Qualified
Process to produce products for its own or for any third party. 

  
 Article 5 (Dispatch of SPANSION Engineers) 
  

	 	1.	SPANSION may send its employees to FJ temporarily for engineering support of this foundry manufacturing, when FJ requested and both parties agreed to do so.

  

	 	2.	SPANSION shall be responsible for causing its engineers or employees to comply with the working rules and security instructions designated by FJ. 

  

	 	3.	SPANSION shall bear all the cost incurred for such engineers or employees such as transportation fee, living expenses, wages, welfare and other allowances or expenses.

  

	 	4.	FJ shall provide such SPANSION’s engineers and employees with appropriate working environment. 

  
 Article 6 (Production Plans) 
  

	 	1.	FJ shall, at its quarterly production planning, provide SPANSION with the demand forecast for the following 6 quarters, and SPANSION shall, within three (3) working days, provide FJ
the capacity allocation plan for the following 6 quarters. 

  

	 	2.	FJ shall provide SPANSION with the monthly rolling demand forecast based on wafer output basis for the following 6 months including then-current month by 5th of every month by each product basis. FJ shall commit the demand for the following 3 months as placing purchase order on
SPANSION. From the 4th to 6th months of the forecast, the demand shall be treated as only the forecast, and FJ shall not have any obligation to placing purchase order on SPANSION. 

  

	 	3.	The production cycle time at SPANSION shall be as shown in Exhibit B. 

  
 ****. 
  
 Article 7 (Pricing) 
  
 Sales
price for each FJ Product between FJ and SPANSION shall be determined on wafer basis. Exhibit C attached hereto shows the mutually agreed sales price. The prices shall be discussed and determined by both parties on a quarterly basis. Sales price
shall be the wafer price with completing WET, without the fee for sort testing. 
  
 **** 
  
 Article 8 (Agreed Die Yield) 
  
 FJ and SPANSION shall discuss and determine the Agreed Die Yield, which shall be achieved and the achievable die yield, on each FJ product. The initial
Agreed Die Yield shall be discussed and be mutually agreed based on the result of sort testing for **** wafers of each FJ product. The Agreed Die Yield shall be revised and mutually agreed quarterly based on the actual yield. 
  

	*	Confidential treatment has been requested pursuant to the Confidential Treatment Request dated September 19, 2005. 

 Article 9 (Acceptance Yield) 
  
 FJ shall be able to refuse the acceptance of products, which can not achieve the yield **** of each product. Such product shall be returned from FJ to
SPANSION, and the amount of such product shall be refund from SPANSION to FJ. 
  
 Article 10 (Individual sales contract) 
  

	 	1.	FJ shall place a purchase order with SPANSION for FJ products for the quantity on the Production Plan for the three month in consideration of the agreed production cycle. Individual
sales contracts shall be deemed executed upon SPANSION’s acceptance of FJ’s purchase order. No notice of rejection by SPANSION within seven (7) working days after SPANSION’s receipt of such purchase orders shall be deemed accepted by
SPANSION. It is agreed by the parties that the minimum wafer quantity per one lot shall be 25 wafers, and the minimum wafer quantity per one lot for trial lot shall be discussed and agreed by both parties. 

  

	 	2.	The purchase order shall specify the purchase order number, part number, quantity, unit price, total amount, delivery schedule and any items to be agreed upon between the parties.

  

	 	3.	SPANSION shall provide FJ with its committed delivery date within three (3) days after its receipt of the purchaser orders from FJ. 

  
 Article 11 (Delivery) 
  

	 	1.	SPANSION shall deliver FJ products which meet the WET Specifications and other specifications set forth in Purchase Specifications. 

  

	 	2.	SPANSION shall pack the FJ products in accordance with the packing specifications to be agreed upon between the parties. 

  

	 	3.	SPANSION shall update weekly delivery schedule of FJ products and provide this to FJ in writing. 

  

	 	4.	SPANSION shall deliver the FJ products to FJ at the warehouse designated by FJ in accordance with the schedule agreed in the Production Plan and the any updated weekly delivery
schedule together with a delivery document designated by FJ or any equivalent form of SPANSION acceptable for FJ. FJ shall receive the shipments and give a written receipt thereof to SPANSION. SPANSION shall bear the cost for the packing, freight
and insurance of FJ products to FJ. 

  

	 	5.	In case SPANSION may not be able to deliver the FJ products in time for the agreed production plan or updated weekly delivery schedule, SPANSION shall notify FJ in writing of any
potential delay together with further updated weekly updated schedule and wafer starts schedule for such FJ products. 

  
 Article 12 (Transfer of ownership) 
  
 The title to or ownership of FJ products shall pass to FJ upon the shipment from SPANSION. 
  
 Article 13 (Acceptance testing) 
  
 Within seven (7) working days after receipt of shipments by SPANSION, FJ shall perform acceptance testing on the shipments in accordance with the
inspection criteria and means to be agreed upon between the parties. FJ shall notify SPANSION in writing of the result of the acceptance testing within such period. FJ may extend such seven-day period to a mutually agreeable period by giving written
notice of such extension to SPANSION. No notice of acceptance or rejection within such seven-day period or extended period shall be deemed acceptance of such FJ products by FJ. 
  

	*	Confidential treatment has been requested pursuant to the Confidential Treatment Request dated September 19, 2005. 

 Article 14 (Rejected products) 
  

	 	1.	In the event any FJ products shipped by SPANSION are rejected at the FJ’s acceptance testing due to a cause attributable to SPANSION, SPANSION shall either replace the rejected
FJ products with other FJ products or discuss rescheduling or others with FJ. 

  

	 	2.	SPANSION shall accept the rejected products returned by FJ. SPANSION’s obligation hereunder shall not apply to rejected products which are specially accepted by FJ.

  

	 	3.	In the event SPANSION does not receive the rejected products returned, FJ may return these rejected products at SPANSION’s costs for such return including freight.

  

	 	4.	SPANSION shall, at its own responsibility and cost, destroy any and all rejected products returned by FJ with the same degree of care it takes with regard to its own products in
accordance with the destruction procedure to be mutually agreed upon between the parties. 

  
 Article 15 (Special acceptance) 
  
 In the event the rejected products are found to be acceptable through additional inspection by FJ and FJ does not require replacements, FJ may accept them as specially accepted products. The sales price of such specially accepted products
shall be discussed and determined by both parties. 
  
 Article 16 (Risk bearing)

  
 The risk of loss or damages to the FJ products shall be borne
by SPANSION in case such loss or damages occur before FJ’s acceptance without FJ’s responsibility, and shall be borne by FJ in case such loss or damages occur after FJ’s acceptance without SPANSION’s responsibility. 

 
 Article 17 (Payment) 
  

	 	1.	The amount of money due for FJ products shipped by SPANSION shall be fixed at the completion of SPANSION’s shipment. 

  

	 	2.	FJ shall sum up all the amount due as of the last working day of each month and immediately provide SPANSION in writing with such data by facsimile or mail.

  

	 	3.	SPANSION shall confirm the data provided in the Article 17.2 above with its own records to see if such data is correct or not. If there are some discrepancies found by SPANSION,
SPANSION shall notify FJ in writing of such discrepancy within seven (7) working days after its receipt of data. At that time SPANSION and FJ shall each other refer their documentation for the reconciliation. 

  

	 	4.	No notice of objection from SPANSION within such 7-day period shall be deemed accepted by SPANSION. If SPANSION makes any objection to the documentation after such 7-days and FJ has
confirmed it, SPANSION and FJ shall discuss how to settle such objection. 

  

	 	5.	FJ shall make the payment by telegraphic transfer of the amount due for a month and the applicable consumption tax to the bank account designated by SPANSION within **** days after
the end of the month in which the applicable shipment occurs. 

  
 Article 18 (Masks) 
  

	 	1.	FJ shall lease the mask sets free of charge to SPANSION which SPANSION requests for production and/or evaluation of FJ products and both parties agreed for the necessity.

  

	*	Confidential treatment has been requested pursuant to the Confidential Treatment Request dated September 19, 2005. 

	 	2.	SPANSION shall use and maintain the FJ’s mask sets with the same degree of care it takes with regard to its own mask sets. 

  

	 	3.	SPANSION shall notify FJ in writing immediately after the mask sets leased by FJ are damaged or lost or when it find any defects in mask sets (including pericle peeling) and follow
any instructions made by FJ. In the event such destruction or damages or defects are not attributable to FJ, SPANSION shall, at its own cost, repair the mask sets or replace with new ones. 

  

	 	4.	SPANSION shall record the delivery in and out and do the inventory check at the end of every half year (end of September and end of March) and report the result to FJ.

  

	 	5.	FJ and SPANSION shall follow other instructions set forth in Exhibit D. 

  
 Article 19 (WIP Compensation) 
  
 Both parties agree that FJ shall compensate the WIP in the process line of SPANSION in the event that FJ cancel the purchase order by its own reason. The
amount of the compensation shall be calculated as the count of performed mask layer equivalent. 
  
 Article 20 (Die Yield Compensation) 
  

	 	1.	In the event that the actual die yield (“Actual Die Yield”) at sort testing of FJ products are lower or higher than the Agreed Die Yield Allowance (“Die Yield Guard
Band”) to be agreed by the parties in accordance with Article 8, both parties agree to settle the die yield compensation to be calculated based on the following formula in a manner to be mutually agreed upon by the parties separately from the
payment for wafer sales prices. 

  

	 	2.	The compensation shall be calculated and executed in every quarterly basis. 

  

	 	3.	The Die Yield Guard Band shall be agreed by both parties based on the Actual Die Yield of ****, as the higher and lower range as percentage from the Agreed Die Yield in Article 8.
The Die Yield Guard Band shall be discussed and agreed by mutual agreement based on the Actual Die Yield by every quarter. 

  

	 	4.	Both parties shall agree on following calculation scheme per each FJ product. 

  

    Actual Good Die Qty / Actual Shipped Wafer Qty / Gross Die per Wafer = Actual Die Yield 
  

	 	(1)	Actual Die Yield > Agreed Die Yield + Die Yield Guard Band 

  
 (Actual Die Yield - Agreed Die Yield) / Agreed Die Yield * Wafer Qty * Wafer Price = Yield Compensation from FJ to SPANSION 
  

	 	(2)	Actual Die Yield < Agreed Die Yield + Die Yield Guard Band 

  
 (Agreed Die Yield - Actual Die Yield) / Agreed Die Yield * Wafer Qty * Wafer Price = Yield Compensation from SPANSION to FJ 
  
 Article 21 (Treatment for automotive applications) 
  
 The parties shall follow the rule to be mutually agreed upon for FJ products
for automotive applications. 
  

	*	Confidential treatment has been requested pursuant to the Confidential Treatment Request dated September 19, 2005. 

 Article 22 (Quality Control) 
  

	 	1.	SPANSION shall maintain an effective and reasonable Quality Control System ranging from acceptance of purchase orders to services after delivery in a proper manner in order to
assure FJ that the products to be manufactured by SPANSION shall conform to the quality criteria to be agreed upon between the parties. 

  

	 	2.	SPANSION shall make a reasonable effort to provide any information regarding its Quality Control System when FJ requests in writing that any such information be provided by FJ.

  

	 	3.	SPANSION shall keep and maintain the quality records of wafer processing and outgoing test results for each lot for at least **** years after the delivery of such lot to FJ.
SPANSION shall provide FJ with such record at FJ’s reasonable request and SPANSION’s consent. 

  

	 	4.	SPANSION shall assign some engineers who are responsible for quality control and shall serve as interface with FJ. 

  

	 	5.	SPANSION and FJ shall periodically hold meetings to exchange or discuss information regarding quality and reliability of FJ products. 

  

	 	6.	SPANSION shall immediately notify FJ in writing whenever SPANSION has reason to believe that the product may not conform to the quality or reliability specifications for products,
and both parties agree to discuss and agree on the means to fix the problem. 

  
 Article 23 (Warranty) 
  

	 	1.	SPANSION shall ship the FJ products which satisfy the quality requirements of SPANSION under the quality control system as set forth in Article 22. 

  

	 	2.	SPANSION shall warrant that the Product shall be free from defects in material and workmanship under normal use and service for twelve (12) month from the date of acceptance of
products by FJ. If, during such 12-month period, any defect is found in the products attributable to SPANSION, FJ shall promptly notify in writing that such defect is found, and SPANSION and FJ shall examine the products in question to determine who
is attributable to such defect. When the examination discloses that such defect is attributable to SPANSION, SPANSION shall, at FJ’s option, either fix the defect of products, replace or credit FJ for such defective parts.

  

	 	3.	In case FJ desires any remedy other than those specified in Article 23.2 above, SPANSION and FJ shall negotiate in good faith such remedy. 

  

	 	4.	In the event any material defect of products attributable to SPANSION is found even after the 12-month period set forth in Article 23.2 above is over, SPANSION and FJ shall discuss
and agree on the measures to be taken. 

  
 Article 24 (Quality Audit) 
  

	 	1.	FJ shall be allowed to visit SPANSION’s facility for FJ products upon reasonable written notice to SPANSION and SPANSION’s written consent to perform a quality audit for
manufacturing facilities of FJ products to confirm the maintenance and improvement of the quality of FJ’s products or respond to its customers’ claims. SPANSION shall allow FJ to inspect the manufacturing process at FJ’s request under
SPANSION’s rules or provide FJ with the quality information which FJ may ask SPANSION to disclose. 

  

	 	2.	FJ may make a request to SPANSION to take corrective actions for any critical issue, if any, which is found at the audit by FJ. SPANSION shall take a corrective action when SPANSION
accepts to do so and make a written report to FJ on the subsequent effect of such action(s). 

  

	*	Confidential treatment has been requested pursuant to the Confidential Treatment Request dated September 19, 2005. 

 Article 25 (Assignments) 
  
 Neither party shall assign or otherwise transfer to any third party, without the other party’s prior written consent,
any of the right and obligations as set forth in this Agreement. 
  
 Article 26 (Confidential Information) 
  

	 	1.	Each party shall keep in strict confidence the content of this Agreement, technical information or documentation disclosed and identified as confidential hereunder, trade secret
disclosed or acquired hereunder from the other party (“Confidential Information”) and shall not disclose to any third party for five (5) years or more longer period which may be indicated by the disclosing party after the receipt of such
Confidential Information. The Confidential Information shall not include the information; 

  

	 	1)	which is publicly known or was already known by the receiving party before receipt from the disclosing party; 

  

	 	2)	which becomes publicly known or available in public after receipt from the disclosing party through no fault of the receiving party; 

  

	 	3)	which is rightfully received by the receiving party from a third party without any duty of confidentiality; 

  

	 	4)	which is disclosed to any third party by the disclosing party without any confidential obligation to such third party; 

  

	 	5)	which is disclosed with the prior written approval of the disclosing party; or 

  

	 	6)	which is independently developed by the receiving party without the use of confidential information of the disclosing party 

  

	 	2.	Each party shall exercise the same degree of care to safeguard the confidentiality of the disclosing party’s Confidential Information as that party exercises to safeguard the
confidentiality of its own information of similar nature, and shall use the Confidential Information of the disclosing party only for the purposes of this Agreement, and shall disclose to its employees who have a need-to-know for the performance of
this Agreement and shall be responsible for its employees’ compliance with the confidentiality obligations hereunder. 

  

	 	3.	The obligations under this Article shall not prevent the parties from disclosing the Confidential Information to any court or government agency as required by law (provide that the
party intending to make such disclosure in such circumstances has given prompt notice to the other party prior to making such disclosure so that such party may seek a protective order or other appropriate remedy prior to such disclosure and
cooperate with such other party in seeking such order or remedy.) 

  
 Article 27 (Intellectual Property Rights) 
  
 When any technology related FJ product is developed jointly by the parties or solely by a party by using the confidential information of the other party
in the course of this Agreement, the ownership of and the right to file for any patent or utility model (“Patent) and maskwork rights, copyright, know-how (other IPR) for such technology shall be jointly owned by SPANSION and FJ. The parties
agree to cooperate in 

 applying for, prosecuting and maintaining any jointly owned Patent and in protecting jointly owned other
IPR and shall equally share the expenses thereof. Each party shall have the right to make, have made, use and sell products and processes using the jointly owned Patent and other IPR and to license without accounting to the other parties unless
otherwise mutually agreed upon in writing, except that neither party shall assign its ownership interest in any jointly owned Patents or jointly owned other IPR to a third party without the consent of and without accounting to the other party.

  
 Notwithstanding the foregoing, where any technology related
to FJ product is developed independently by a party without use of the Confidential Information of the other party in the course of this Agreement, the ownership and the right to file for a Patent shall rest solely with the party developing such
technology. All other IPR in such technology shall be owned jointly by the parties. Any Patent to be solely owned by either party shall be licensed each other pursuant to certain Patent Cross License Agreement between FJ and SPANSION LLC, parent
company of SPANSION, dated June 30, 2003. 
  
 Article 28 (Indemnification) 
  

	 	1.	Any claim by a third party of infringement of its intellectual property rights with respect to the Products hereunder brought against either party shall be settled as follows;

  

	 	(1)	A party who is responsible for the cause of such claim shall, at its own cost, defense and settle the claim. 

  

	 	(2)	In the event that the cause of such claim is found to be attributable to the other party, one party shall promptly notify of such the other party of such claim and such the other
party shall, at its own cost, shall defense and settle such claim, provided, however, that, such one party shall give the other party the right to control and direct the defense and settlement of such claim. If the third party dose not desire to
settle with such the other party and such the other party cannot settle the claim, such one party shall defend and settle such claim. In such event, such one party shall be entitled to claim the reimbursement for any liabilities or damages it has
suffered in such defense or settlement against the other party. The parties shall negotiate in good faith and agree on the scope of liabilities and damages and ways of reimbursement. 

  

	 	(3)	In the event it is not clear which party is responsible for such claim, the parties shall cooperate each other in the defense and settlement. The parties shall discuss in good faith
and agree on how to share the cost for such defense or settlement. 

  
 Article 29 (Limitation of Liability) 
  
 IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES, HOWEVER CAUSED, ON ANY THEORY OF LIABILITY AND
WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, ARISING IN ANY WAY OUT OF THIS AGREEMENT OR INDIVIDUAL SALES CONTRACT OR PRODUCTS PROVIDED PURSUANT TO THIS AGREEMENT. 
  
 Article 30 (Discontinuation of the products) 
  
 If SPANSION desires to discontinue to produce any of FJ products or certain
manufacturing process for FJ products, SPANSION shall notify FJ in writing of such desire **** prior to such discontinuation and, if agreed by FJ, discuss with FJ details of such discontinuation. 
  

	*	Confidential treatment has been requested pursuant to the Confidential Treatment Request dated September 19, 2005. 

 Article 31 (Termination) 
  

	 	1.	Either party may terminate this Agreement or any individual sales contract, in whole or in part, immediately without any notice to the other party in the event the other party is in
material breach of this Agreement and fails to cure the breach within a reasonable period of time after written notice of the breach to the other party. The other party so terminated shall accept the termination and pay any amount due to such
terminating party. 

  

	 	2.	Either party may terminate any individual sales contract, in whole or in part, provided that the terminating party shall be responsible for all the cost or damages incurred by the
other party. Such costs and damages shall be discussed and agreed between the parties. 

  
 Article 32 (Term of this Agreement and effect of termination) 
  

	 	1.	This Agreement shall become effective when executed by the parties and shall continue in full force and effect for three (3) years thereafter, and shall be automatically extended
for one (1) year period after the end of the initial term or any extended term, unless either party hereto gives to the other party a written notice not to extend this Agreement at least two (2) years prior to the end of such initial term or any
extended term of this Agreement. Both parties hereto may terminate this Agreement at any time for the purpose of mutual benefit upon the mutual agreement before the initial term or any extended term of this Agreement. 

  

	 	2.	When this Agreement is terminated in accordance with Article 32.1 above, any effective individual sales contract at the time of termination shall continue to be effective and this
Agreement shall govern such purchase order until it expires. SPANSION may utilize the Confidential Information of FJ to the extent it is required for SPANSION to fulfill its obligations under such individual sales contracts. Disposition of
Confidential Information of FJ when such individual sales contracts expire shall be subject to the following section. 

  

	 	3.	Upon termination or cancellation of this Agreement, each party agrees, at the other party’s option, to return or destroy with written certificate of such destruction all the
Confidential Information of the other party including copies or extracts thereof within thirty (30) days after the termination or cancellation. 

  

	 	4.	The provisions of Articles 12, 17, 19, 22, 23, 25, 26, 27, 28 and 32 shall survive the termination or cancellation of this Agreement. 

  
 Article 33 (Settlement of Dispute) 
  
 Each party shall make reasonable efforts to amicably resolve through mutual
agreement all disputes, controversies or differences of opinion which may arise between the parties, out of, or in connection with this Agreement. 
  
 Article 34 (Working Days) 
  
 Working Days shall mean the days when the banks are open for businesses in Japan. 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by their respective duly
authorized representatives as of the date as below. 
  
 As of March 31, 2005

  

							
	FUJITSU LIMITED	  	SPANSION JAPAN LIMITED
				
	By:	 	 /s/ Koichi Ishizaka

	  	By:	 	 /s/ Shinji Suzuki

	Name:	 	Koichi Ishizaka	  	Name:	 	Shinji Suzuki
	Title:	 	Group Executive Vice President,	  	Title:	 	President
	 	 	Electronic Devices GroupForm of Amendment to Manufacturing Services Agreement

 Exhibit 10.35 
  
 FORM OF FIRST AMENDMENT TO MANUFACTURING SERVICES AGREEMENT 
  
 THIS FIRST AMENDMENT TO MANUFACTURING SERVICES AGREEMENT (this
“Amendment”) is made and entered into as of August     , 2005 (the “Effective Date”), by and between Spansion LLC, a Delaware limited liability company formerly known as FASL LLC
(“Spansion”), and Fujitsu Limited, a corporation organized under the laws of Japan (“Fujitsu”). Spansion and Fujitsu are hereinafter also referred to as the “Parties” and individually as a
“Party.” 
  
 RECITALS 
  
 WHEREAS, Spansion and Fujitsu have entered into the Manufacturing
Services Agreement effective June 30, 2003 (the “Manufacturing Services Agreement”), pursuant to which Fujitsu provides certain assembly and final test services to Spansion; and 
  
 WHEREAS, the Parties have agreed to amend certain provisions of the
Manufacturing Services Agreement, upon the terms and subject to the conditions set forth below. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and other terms and conditions contained herein, Spansion and Fujitsu agree as follows:

  
 AGREEMENT 
  
 1. AMENDMENT OF MANUFACTURING
SERVICES AGREEMENT 
  
 The
Manufacturing Services Agreement is hereby amended as follows (capitalized terms used in this Section 1 without definition have the meaning assigned to such terms in the Manufacturing Services Agreement): 
  
 1.1 Addition of Definitions. The following definitions are hereby
inserted in Section 1.2 of the Manufacturing Services Agreement in their appropriate alphabetical order: 
  
 “‘Affiliate’ of a Person means any other Person which, directly or indirectly, controls, is controlled by, or is under common
control with, such Person. The term “control” (including, with correlative meaning, the terms “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. A Person shall be deemed an Affiliate of another Person only so
long as such control relationship exists. The Parties acknowledge and agree that Fujitsu is not presently controlled by any other Person. Notwithstanding the foregoing, neither Spansion nor any of its directly or indirectly majority owned
subsidiaries shall be deemed to be an Affiliate of Fujitsu.” 
  
 “‘Applicable Law’ means, with respect to a Person, any domestic or foreign, national, federal, territorial, state or local constitution, statute, law (including principles of common law), treaty, ordinance, rule,
administrative interpretation, regulation, order, writ, injunction, legally binding directive, judgment, decree or other requirement or restriction of any arbitrator or governmental authority applicable to such Person or any of its Affiliates or any
of their respective properties, assets, officers, directors, employees, consultants or agents (in connection with such officer’s, director’s, employee’s, consultant’s or agent’s activities on behalf of such Person or any of
its Affiliates).” 
  

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 “‘Business’ means all aspects related to the development, manufacture and sale of
semiconductor devices (including single chip or multiple chip products), a substantial function of which is code and/or data storage.” 
  
 “‘Person’ means any person or entity, whether an individual, trustee, corporation, partnership, limited partnership, limited
liability company, trust, unincorporated organization, business association, firm, joint venture, other legal entity or governmental authority.” 
  
 “‘Tax’ or ‘Taxes’ means all taxes, levies, imposts and fees imposed by any governmental authority (domestic or
foreign) of any nature including but not limited to federal, state, local or foreign net income tax, alternative or add-on minimum tax, profits or excess profits tax, franchise tax, gross income, adjusted gross income or gross receipts tax,
employment related tax (including employee withholding or employer payroll tax, FICA or FUTA), real or personal property tax or ad valorem tax, sales or use tax, excise tax, stamp tax or duty, any withholding or back up withholding tax, value added
tax, severance tax, prohibited transaction tax, premiums tax, occupation tax, together with any interest or any penalty, addition to tax or additional amount imposed by any governmental authority (domestic or foreign) responsible for the imposition
of any such tax.” 
  
 1.2 Revision to Section 1.2.6.
The term “calendar month” in Section 1.2.6 of the Manufacturing Services Agreement is hereby changed to “fiscal month of Spansion,” and the clause “based on local time in Japan” is hereby deleted in its entirety.

  
 1.3 Revision to Section 1.3.3. The term
“Entity” in Section 1.3.3 of the Manufacturing Services Agreement is hereby changed to “entity.” 
  
 1.4 Revision to Section 2. The term “affiliate” in Section 2 of the Manufacturing Services Agreement is hereby changed to
“Affiliate.” 
  
 1.5 Amendment to Section 3.
Section 3 of the Manufacturing Services Agreement is hereby deleted in its entirety and replaced with the following: 
  
 “No later than the end of the second Month of each Fiscal Quarter during the Term, Spansion’s Director of FMO Logistics or his or her designee
shall provide Fujitsu with a written or electronic nonbinding report and forecast of products (each, an “R6Q”), which shall specify (a) the type and quantity of Services ordered during the Month prior to the Month in which such R6Q
is provided, (b) an estimate of the type and quantity of Services expected to be ordered during both the Month in which such R6Q is provided and the subsequent Month (the Months covered by clauses (a) and (b) shall be considered the first Fiscal
Quarter of an R6Q), (c) an estimate of the type and quantity of Services expected to be ordered during each Month of the subsequent five Fiscal Quarters and (d) other relevant information as the Parties may agree. Fujitsu shall not accept any R6Q
provided by anyone other than Spansion’s Director of FMO Logistics or his or her designee, and any such other R6Q shall not be considered in establishing the Projected Aggregate Labor and Overhead Costs (as defined in Section 5 below). If
Spansion’s Director of FMO Logistics or his or her designee does not provide Fujitsu with any R6Q within ten (10) business days of the applicable deadline, Fujitsu shall use the previous R6Q in establishing the Projected Aggregate Labor and
Overhead Costs. For the avoidance of doubt, Spansion shall provide Fujitsu with an R6Q during the Months of February, May, August and November of each year. The Parties acknowledge that Spansion provided an R6Q to Fujitsu in May 2005, which R6Q
included actual Services ordered for April 2005, estimated Service orders for each of May and June of 2005, and forecasted Service orders for the subsequent five Fiscal Quarters commencing on July 1, 2005.” 
  

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 1.6 Revision to Section 4.3.2. The term “Forecasts” in Section 4.3.2 of the
Manufacturing Services Agreement is hereby changed to “R6Q” in each instance in which it is used. 
  
 1.7 Addition of Sections 4.7 and 4.8. The following new Sections 4.7 and 4.8 are herby added to the Manufacturing Services Agreement: 

 
 “4.7 Labor and Overhead Commitment. In the event that the
aggregate expended Labor Costs and Overhead Costs (excluding Material Costs and shipping costs (which are covered in Section 4.2)) of Fujitsu for Services actually purchased by Spansion during a Fiscal Quarter is less than ninety-seven percent (97%)
of the Projected Aggregate Labor and Overhead Costs for such Fiscal Quarter, then Spansion shall pay to Fujitsu the amount of such deficiency. In such event, Fujitsu will issue to Spansion an invoice within five (5) business days (in Japan)
following the end of the relevant Fiscal Quarter for the amount due and payable, together with such reasonable supporting documentation and information as the Parties may agree, and Spansion shall pay Fujitsu the amount set forth in such invoice
within forty-five (45) days of Spansion’s receipt of such invoice in accordance with Section 6. For purposes of this Agreement, the term “Labor Costs” shall include, without limitation, the wages and benefits expenses of those
Fujitsu personnel performing the Services as determined based on generally accepted accounting principles in Japan; the term “Overhead Costs” shall include, without limitation, depreciation of equipment used to perform the services,
facility cost allocations, repairs and maintenance, outsourcing costs, indirect materials, travel, other employee costs, and general administrative expenses specifically designated by Fujitsu to support the Services as determined based on generally
accepted accounting principles in Japan; and the term “Material Costs” shall include, without limitation, Fujitsu costs for substrates, lead-frames, gold wire, mold compound, solder ball, epoxy paste and film, as determined based on
generally accepted accounting principles in Japan.” 
  
 4.8
Purchase of Spansion Specific Tools. Upon expiration or termination of this Agreement, (a) Fujitsu will return to Spansion any tools and equipment owned by Spansion and used by Fujitsu in connection with the performance of Services and (b)
Spansion will purchase from Fujitsu, and Fujitsu will sell to Spansion, flash specific tools and equipment (“Equipment”) used by Fujitsu in connection with the performance of Services, which Equipment is identified on Schedule 1.6
to the First Amendment to this Agreement (“Schedule 1.6”). Fujitsu may not purchase any new Flash specific tools or equipment without Spansion’s prior written consent. The Parties shall update Schedule 1.6 from time to time to
reflect any such newly purchased Flash specific tools and equipment. The purchase price for the Equipment shall be equal to the then current net book value based on generally accepted accounting principles in the U.S., using the straight-line
depreciation method (and assuming, where the Equipment is leased, that Fujitsu owns such Equipment). In addition, Spansion will pay to Fujitsu, with respect to leased Equipment identified as such on Schedule 1.6, such amounts that are incurred by
Fujitsu in connection with the early termination of the lease(s) as may be mutually agreed to by the Parties, provided that Spansion’s agreement shall not be unreasonably withheld. The Equipment shall be sold on an “as is”
basis, and delivery shall be made FCA (Kyushu plant), at which point title and risk of loss to the Equipment will pass to Spansion. Spansion will also bear all other reasonable costs associated with delivering the Equipment, including reasonable
costs incurred in connection with de-installing the testers identified on Schedule 1.6.”  
  

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 1.8 Amendment to Sections 5.1-5.3. The Title of Section 5 of the Manufacturing Services Agreement
is hereby changed from “Requirement; Pricing” to “Pricing”. Sections 5.1 through 5.3 of the Manufacturing Services Agreement are hereby deleted in their entirety and replaced with the following Section 5: 
  
 “The Parties shall establish prices (“Prices”) for
Services for the third Fiscal Quarter in an R6Q no later than thirty (30) days prior to the commencement of such third Fiscal Quarter, on a per product-type basis, which Prices shall be equal to Fujitsu’s good faith estimation of projected
Material Costs, Labor Costs and Overhead Costs for such product-type, plus three percent (3%). The costs shall be projected in good faith by Fujitsu. Spansion shall have a period of ten (10) business days from its receipt of Fujitsu’s
projection in which to object in writing to the Prices in any such projection. If Spansion does not provide Fujitsu written notice of its objection within such ten (10) business-day period, such Prices shall be deemed accepted. If Spansion does
provide Fujitsu with written notice of its objection to such Prices within such ten (10) business-day period, the Parties shall meet and discuss the matter in good faith in an attempt to agree on the Prices. During such good faith discussions, the
Prices set forth in the relevant projection shall apply, provided that in the event that the Parties agree to any change in Prices, such change shall apply retroactively with respect to Services ordered based on Prices set forth in such
projection. In the establishment of Prices, and the timing thereof, by way of example, the Parties shall use the R6Q to be provided by Spansion during August 2005 to establish Prices for the first Fiscal Quarter of 2006, with such Prices to be
established no later than thirty (30) days prior to the first day of the first Fiscal Quarter of 2006. The Parties acknowledge and agree that Prices shall be determined in this manner effective with the fourth Fiscal Quarter of 2005, using the R6Q
provided in May 2005. The Parties further acknowledge and agree that Prices for the period from the commencement of the second Fiscal Quarter of 2005 to the end of the third Fiscal Quarter of 2005 shall be determined using the production forecast
provided by Spansion to Fujitsu in April 2005 using the methodology set forth herein. During the establishment of the Prices, Fujitsu shall provide to Spansion its projected Material Costs, Labor Costs and Overhead Costs in reasonable detail. The
aggregate amount of projected Labor Costs and Overhead Costs for any such Fiscal Quarter is referred to herein as “Projected Aggregate Labor and Overhead Costs”.”  
  
 1.9 Revision to Section 8.3. The term “Governmental
Authority” in Section 8.3 of the Manufacturing Services Agreement is hereby changed to “governmental authority.” 
  
 1.10 Amendment to Section 11.1. Section 11.1 of the Manufacturing Services Agreement is hereby deleted in its entirety and replaced with the
following: 
  
 “This Agreement will be effective as of the
Effective Date, and will continue in full force and effect until September 30, 2006 (the “Term”), unless earlier terminated in accordance with Section 11.2 or Section 11.3; provided however, that Spansion shall have the right to
terminate this Agreement in its entirety, or as it applies to any of the manufacturing processes described on Schedule 1.2.10 at any time and for any reason upon at least four (4) months’ prior written notice.” 
  
 1.11 Amendment to Section 12.3. Section 12.3 of the Manufacturing
Services Agreement is hereby deleted in its entirety and replaced with the following: 
  
 “Any dispute arising under or relating to this Agreement shall be resolved in accordance with the dispute resolution procedures set forth on Schedule 1.11 to the First Amendment to this Agreement.”

  

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 1.12 Amendment to Section 12.6. The phrase “and the Transaction Documents constitute” in
Section 12.6 of the Manufacturing Services Agreement is hereby changed to “constitutes.” 
  
 2. MISCELLANEOUS TERMS 
  
 This Amendment is limited to the amendments set forth herein and is subject to the terms and conditions contained herein. Except as expressly stated herein, the Manufacturing Services Agreement between the parties is
hereby ratified and confirmed in all respects and shall continue in full force and effect. The Manufacturing Services Agreement between the parties shall be read together with this Amendment as one agreement. This Amendment may be executed in any
number of counterparts each of which when executed and delivered shall be an original, but all the counterparts together shall constitute one and the same instrument. This Amendment shall be governed by, and construed in accordance with, California
law without any reference to the conflict of law rules. 
  
 [Remainder of page intentionally left blank.] 
  

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

							
	SPANSION LLC:	 	FUJITSU LIMITED:
				
	By:	 	  

	 	By:	 	  

	Name:	 	  

	 	Name:	 	  

	Title:	 	  

	 	Title:

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