Document:

Wafer Manufacturing Agreement

EXHIBIT 10.12 
 
CONFIDENTIAL TREATMENT REQUESTED 
 
 

 
WAFER
MANUFACTURING AGREEMENT 
 
Introduction

 
This Wafer Manufacturing Agreement (this
“Agreement”) is entered into by and between California Micro Devices Corporation, a corporation formed under the laws of, and with a place of business and office in, California USA (“CAMD”), and Advanced Semiconductor
Manufacturing Corporation of Shanghai, a corporation formed under the laws of, and with an office and place of business in, the Peoples Republic of China (“ASMC”), effective upon the later of the dates (the “Effective Date”) it
is signed by a representative of each party under Authorized Signatures below. 
 
Background 
 
A.    CAMD markets and sells worldwide semiconductors which it designs and makes in Milpitas California and Tempe Arizona using proprietary processes. 
 
B.    ASMC manufactures semiconductors for
third parties with its plants located in Shanghai, China. 
 
C.    CAMD desires to have a third party with a lower cost structure make the semiconductors CAMD has designed using processes specified by CAMD. 
 
D.    CAMD has retained ASMC to make certain of its semiconductors and both parties have
been pleased with their relationship to date and wish to expand it. 
 
E.    ASMC currently does not have certain know-how needed to make the type of semiconductors CAMD has designed but, if trained in such know-how, believes it would be able to make such semiconductors in
its facilities. For example, ASMC has never made any semiconductors using Tantulum Nitride. 
 
F.    Worldwide, there is excess capacity to make the type of semiconductors CAMD has designed; ASMC typifies this and currently has excess capacity which CAMD is willing to
utilize. 
 

 
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G.    Historically, semiconductor capacity has been cyclical and CAMD wishes to ensure that when semiconductor capacity gets scarce, ASMC will allocate capacity to CAMD and not raise prices, to which ASMC is
willing to commit. 
 
Agreement 
 
Based upon the facts and premises in the
Background above, which are hereby conclusively presumed to be true and correct, and the mutual promises below, CAMD and ASMC hereby agree as follows: 
 

	1.	 	Capacity, Forecasts, and Orders 

 

	 	a.	 	Long-Term Capacity 

 
Every December and June, officers of ASMC and CAMD will schedule a meeting to discuss, in the case of ASMC, its current allocated and
unallocated capacity and its forecast for such capacity for the next ** months and, in the case of CAMD, its current development plans and demand forecasts for the next ** months. The parties will work together so that CAMD treats ASMC as a
preferred third party manufacturer and ASMC treats CAMD as a preferred customer. In these regards, ASMC agrees that if at any time its unallocated capacity on its **” or **” lines is expected to become less than ** percent
(**%) during the next ** months, then ASMC will so notify CAMD and allow CAMD priority to utilize such capacity. If at the end of a calendar year, CAMD has ordered less than it had forecast and ASMC has purchased excess raw wafers in
anticipation after consultation with CAMD, then CAMD will, upon request of ASMC, purchase such raw wafers from ASMC. Notwithstanding the foregoing, ASMC shall reserve capacity for CAMD which is adequate to cover future orders being at the same level
as orders during the prior twelve months (or during the term of this Agreement, if shorter) excluding from such calculation the first three months of this Agreement while orders are ramping up. 
 

	 	b.	 	Short-Term Forecasts 

 
In the ** week of each month, CAMD will supply ASMC with a non-binding forecast with a +/-**% variation of its demand for
wafer starts during the following six months. ASMC will respond within the following five (5) business days as to whether it has the capacity to meet such forecast. If ASMC responds that it has adequate capacity, then it will reserve such capacity
for CAMD. It is expected that ASMC will have adequate capacity unless both (1) ASMC has notified CAMD that it has less than ** percent (**%) unallocated capacity and (2) CAMD increases its short-term forecast more than **% over
both (a) its prior purchase order and (b) long-term forecast. 
 

 
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	 	c.	 	Orders 

 
Once CAMD has received ASMC’s response, CAMD will place a purchase order for wafer starts covering that portion of the next **
weeks which was not covered by prior CAMD purchase orders. ASMC shall accept each CAMD order which is consistent with the forecast to the extent ASMC had responded that it had adequate capacity. 
 
All purchase orders issued by CAMD shall reference this
Agreement. The terms and conditions of this Agreement shall exclusively govern the purchase and supply of wafers hereunder and shall override any conflicting, amending and/or additional terms contained in any pricing agreement, CAMD purchase order,
CAMD acceptance documents or ASMC’s acknowledgement documents. No variation or addition to the terms and conditions contained in this Agreement shall be binding unless agreed in writing between the authorised representatives of the parties.

 
CAMD’s purchase order shall contain the
CAMD product code, ASMC product code if different, quantity of wafers required, requested start dates for such wafers, wafer unit costs, a statement as to whether unprobed or probed wafers are required and other purchase requirements. 
 

	 	d.	 	Cycle Time 

 
ASMC will report weekly to CAMD on the wafer starts during the prior week. If ASMC is more than ** business days late in starting
any wafer, then ASMC will immediately notify CAMD who may elect to cancel or reschedule the order. ASMC’s wafer fabrication cycle time will not exceed more than ** working days per photomask layer, plus one day for wafer start and one
day for wafer delivery from the fab to the warehouse. Thus, if a CAMD product has four photomask layers, then the guaranteed fab cycle time will be no more than ** days. If the cycle time takes longer, then ASMC will notify CAMD who may put
the order on hold if it chooses. 
 

	 	e.	 	Terms and Conditions 

 
The terms and conditions specified in this Agreement shall govern each order and acceptance. Any pre-printed terms and conditions shall be
ignored. Only those terms on the front of a purchase or sales order governing matters such as quantity, price, wafer start date, and packing and shipping instructions shall be binding on the parties. As provided in Section 7, the parties expressly
agree to be bound by the UN Convention on Contracts for the International Sale of Goods. In the event that CAMD requests from ASMC a non ASMC standard packing method, then CAMD must document those requirements to ASMC. ASMC will attempt to
accommodate CAMD’s special requirements and may adjust price to reflect the additional cost of such requirements. 
 

	 	f.	 	Lot size 

 

 
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CAMD shall
use commercially reasonable efforts to make orders for a minimum of 24 wafers per lot for **” or **” wafers. ASMC reserves the right to levy additional charges if wafer lot sizes are less than 24 wafers for **” or **” wafers in
which case ASMC would propose such additional charges in its order acknowledgement/acceptance for CAMD to accept or reject. CAMD may start up to two lots a week of **” wafers with lot size of 24 wafers without any surcharge. Any additional
weekly lots of **” wafers of less than 49 wafers will incur a surcharge of 30%. 
 

	2.	 	Pricing 

 

	 	a.	 	Price Determination. 

 
The prices for those products currently manufactured by ASMC are shown on Exhibit A. ASMC and CAMD agree that these prices shall be fixed
until December 31, 2002, except as provided in Sections 2c and 2e below, unless the parties otherwise agree. Thereafter, it is anticipated that prices will be set during December and fixed for the following year pursuant to Section 2d. All prices
and payments and charges will be in US dollars. All prices include all taxes, export duties, and other charges imposed by the People’s Republic of China (“PRC”) and any local governments in the PRC but exclude all taxes, import
duties, and other charges imposed by the United States of America (“USA”) and any local governments in the USA. 
 

	 	b.	 	Future Products. 

 
Whenever CAMD wishes ASMC to manufacture a new product with a new process technology the parties shall agree upon the pricing for such
product and how long such price shall be fixed. Pricing for new products made with the existing process technologies will be determined per Exhibit A based upon the wafer cost and the number of layers; however, the parties will agree on an expected
yield of die per wafer for such new product. The expected yield will be based upon commonly used criteria in the semiconductor industry such as die size and defect levels. 
 

	 	c.	 	Price a Function of Yield. 

 
Unless otherwise agreed by the parties, pricing will be based upon the net die per wafer yield resulting from the use of CAMD specified
test procedures. As described above in Section 2b, the initial die per wafer expected will be based upon the commonly used criteria in the semiconductor industry such as die size and defect levels. CAMD, as needed, will work with ASMC to assist in
obtaining the desired yields. The final die per wafer yield will be established after three (3) months of manufacturing experience and Exhibit A will be amended accordingly. Thereafter, within two weeks after each calendar quarter, the parties will
determine whether ASMC has equaled or exceeded this yield, in which case ASMC will be eligible for a yield 

 

 
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improvement bonus under Section 2e below, or whether ASMC has fallen short, in which case CAMD shall receive the following credit. For each
semiconductor product, the credit shall equal the product of the price shown on Exhibit A times the number of wafers for that product purchased during the prior calendar quarter times the ratio of the actual die per wafer yield to the expected die
per wafer yield shown on Exhibit A. 
 

	 	d.	 	Price Adjustments. 

 
In the Section 2a pricing meetings the parties shall agree whether to adjust the price upward or downwards. For a given process, it is
anticipated that the wafer price will decline over time consistent with overall industry trends. 
 
It is anticipated that the parties will agree upon prices that yield reasonable profit to ASMC and yet result in as low a price as possible to CAMD so that CAMD and its products are competitive in the
market which will result in more demand for CAMD and ASMC. ASMC shall share cost information with CAMD on each CAMD product. If the parties cannot agree on prices, then the current prices shall remain in effect for another ** months or else
the parties will attempt to retain a mediator to assist them to reach agreement. 
 

	 	e.	 	Yield Improvement Bonus. 

 
The parties agree to work together to improve yield. ASMC will provide product and process engineering support and CAMD will assist as
requested. The benefits from any improvement in yield will be divided equally among the parties. During the last week of every July and January, the parties shall evaluate whether there should be a yield improvement bonus payable to ASMC based upon
yield improvements during the six months then ended. In these regards, as further described in Exhibit B, CAMD would pay ASMC a bonus so that the parties will have split equally any benefit accruing during such six months from an actual yield that
was higher than the expected yield. 
 

	 	f.	 	Engineering / Pilot / Qualification Lot Fee 

 
The lot size of Engineering / Pilot / Qualification lot shall no less than 12 wafers per lot and ASMC will impose a 50% surcharge on the
production wafer price. ASMC will offer one mask split change without additional charge. 
 

	 	g.	 	Hot Lot Service Fee 

 
If a CAMD order requires cycle time acceleration, then ASMC may impose an expediting surcharge of up to fifty percent (50%). ASMC would
ASMC would propose any such surcharges in its order acknowledgement/acceptance for CAMD to accept or reject. 
 

 
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	3.	 	Testing, Shipping, and Acceptance 

 

	 	a.	 	Testing by ASMC. 

 
ASMC will inspect and test all wafers prior to their shipment to CAMD. If more than two-thirds of the wafers in any lot fail the test,
then ASMC will reject the entire lot and inform CAMD and await instructions for disposition. The test will be a test of the electrical parameters by determining whether three out of five PCM sites on the wafer pass the specifications set by CAMD and
if visual defects will make wafers not yield as specified. If more than 50% of the wafers in any lot fail and CAMD provides a compelling reason, then ASMC will reject the entire lot. 
 

	 	b.	 	Shipping. 

 
Once wafers have passed the Section 3a tests, then ASMC will notify CAMD. CAMD will then pay ASMC in US dollars by wire transfer within
thirty (30) days to an account specified by ASMC. CAMD shall bear any bank charges outside of the PRC. Any late payments shall be subject to finance charges of one and one-half percent (1.5%) per month and ASMC may hold up future shipments until its
account is brought current. Within one (1) business day of notifying CAMD, ASMC will ship the wafers to CAMD, in such packing as specified by CAMD, using Federal Express or such other method as specified by CAMD. CAMD will be responsible to insure
the shipment. ASMC may make partial shipments but shall request CAMD approval for a partial shipment of less than one-third of the order. The delivery term is FCA Shanghai airport, meaning that CAMD will be responsible for any freight, insurance,
and non-ASMC handling charges associated with the shipment of wafers as well as taxes, import duties, and other charges imposed by the USA as provided in Section 2a. All shipments will be accompanied by written documentation showing the test
results. ASMC will monitor CAMD’s payment performance and if CAMD’s payment performance is not in accordance to the thirty days (30) condition, then ASMC has the right to change the payment terms to COD. 
 

	 	c.	 	Acceptance and Warranty 

 

	 	(i)	 	ASMC Testing 

 
ASMC will manufacture wafers to conform with the CAMD-specified acceptance criteria. Prior to delivery, ASMC shall perform on each lot of
wafers manufactured, the tests specified in the acceptance criteria. ASMC will deliver only wafers which meet the acceptance criteria, unless CAMD waives such obligation in writing. 
 

	 	(ii)	 	Effect of Acceptance Test Failure. 

 

 
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If ASMC
discovers that the wafers do not meet any one of the acceptance criteria, ASMC shall as soon as reasonably possible effect the rectification or replacement of the wafers. 
 

	 	(iii)	 	CAMD Acceptance 

 
CAMD will have fourteen (14) days after receipt of the shipment from ASMC to notify ASMC of any discrepancies in quantity and mix of
wafers received from ASMC. CAMD will have ** months from the delivery date of the wafers to perform acceptance testing on the wafers based on wafer sort. CAMD will have remedies for the wafers, or the die resulting from the wafers being cut
and mounted or packaged, being non-conforming for ** from the delivery date of the wafers due to reliability issues. 
 
Warranty Limitations 
 
ASMC shall have no liability and shall not be obliged to accept the return of wafers after the relevant period of two months or one year,
as the case may be. In addition, ASMC shall be under no liability for defects in the wafers caused by persons other than ASMC, including, static discharge, abnormal working conditions, accident, wilful damage, abuse, misuse, neglect, improper
installation, repair or alteration by persons other than ASMC, improper testing and/or improper storage and/or improper handling or use contrary to any instructions issued by ASMC which are in keeping with generally accepted industry practices.
Further, ASMC shall be under no liability for any parts or materials it has not manufactured. 
 

	 	(iv)	 	Duties as to Defective Wafers 

 
ASMC shall have the discretion to decide whether or not to conduct failure analysis on the wafers returned by CAMD, and if such failure
analysis is conducted, ASMC will, at CAMD’s request, provide CAMD with copies of the results of such analysis. If ASMC’s failure analysis determines that the defects are due to causes other than the causes specified in Section 3c(iv)
above, then CAMD may at its option elect for either a full credit (or refund if the Agreement has been terminated) for the purchase price paid for such wafers, or ASMC’s replacement of the defective wafers returned to ASMC. If CAMD elects for
the replacement of defective wafers, the manufacture of such wafers shall have high priority on ASMC’s production schedule. 
 

	 	(v)	 	Sole Warranty For Defects 

 
THE FOREGOING STATES ASMC’S ENTIRE LIABILITY, WHETHER IN CONTRACT OR IN TORT FOR DEFECTS IN WAFERS. THE EXPRESS TERMS OF THIS
AGREEMENT ARE IN LIEU OF ALL WARRANTIES, CONDITIONS, TERMS, UNDERTAKINGS, AND OBLIGATIONS RELATING TO DEFECTIVE PRODUCTS IMPLIED BY STATUTE, COMMON LAW, CUSTOM, TRADE USAGE, COURSE OF 

 

 
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DEALING OR OTHERWISE, ALL OF WHICH ARE HEREBY EXPRESSLY EXCLUDED TO THE FULLEST EXTENT PERMITTED BY LAW AND ASMC SPECIFICALLY DISCLAIMS ANY
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 
 

	 	d.	 	Component Vendors 

 
CAMD shall qualify the supplier of wafers to ASMC and the suppliers of major equipment and chemicals. Thereafter, such suppliers may not
be changed without ninety (90) days prior notice so that CAMD may qualify the proposed new supplier. 
 

	 	e.	 	Production Halts 

 
CAMD may at any time request ASMC to halt the manufacture of wafers still in-process and ASMC shall effect production stoppage. The
manufacture of Wafers shall remain on hold pending written directions from CAMD. 
 
If CAMD decides to cancel its order for wafers after ASMC has begun to process the raw wafers, CAMD shall pay to ASMC a cancellation fee based on the formula set out in Exhibit D. 
 
ASMC shall re-start the manufacture of Wafers within a
reasonable time after receipt of CAMD’s written request, subject to CAMD’ s agreement to bear all expenses incurred by ASMC in production stoppage and re-start. ASMC will make no commitments of yield, reliability and conformance with the
acceptance criteria in respect of Wafers stopped in-process (a) more than one time regardless of the number of days of stoppage, or (b) if the stoppage lasts for more than 30 days. 
 

	2.	 	Know-How Transfer and Intellectual Property. 

 

	 	a.	 	Know-How Transfer. 

 
CAMD will transfer to ASMC the necessary know-how and information for ASMC to run CAMD’s processes and make CAMD products and the
necessary reticles or masks to make CAMD’s products, with responsibility as per Exhibit C. Should ASMC damage a reticle or masks, then ASMC shall replace such reticle or masks at its expense with CAMD’s assistance as required. All such
information is agreed to be proprietary to CAMD and shall be treated as Confidential Information regardless of its labeling. Other information of the parties shall be deemed Confidential Information if so labeled if disclosed in writing or, if
disclosed orally, is said to be confidential at the time and a follow-up writing describing such information and its confidentiality is provided within thirty (30) days of disclosure ASMC agrees not to use CAMD Confidential Information in connection
with making semiconductors for any person 

 

 
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other than CAMD without CAMD’s express written consent. The parties agree maintain each other’s Confidential Information in
confidence using the same degree of care they use for their own confidential information, but in no event less than reasonable care. In these regards, the parties agree not to disclose such Confidential Information except to employees and
independent contractors with a need to know who have written agreements requiring them to retain such information in confidence and not to use such information other than for the party’s authorized purpose. The foregoing shall not apply to
information which otherwise would be treated as Confidential Information (1) if such information is or becomes publicly available other than through acts of the receiving party, (2) is rightfully disclosed to the receiving party by a third party
without restriction on use or disclosure or (3) is previously known by the receiving party and the receiving party so communicates to the disclosing party within thirty (30) days of its receipt of such information. Each party agrees that the other
party would be irreparably damaged by the improper disclosure or prohibited use of such party’s Confidential Information and therefore consents to an arbitrator under Section 8g having the authority to enjoin or prohibit each party from making
or continuing such improper disclosure or prohibited use. 
 

	 	b.	 	Intellectual Property 

 
To the extent that the CAMD products or process are covered by patents, copyrights, mask works, or other intellectual property, CAMD
grants to ASMC the personal and non-transferable non-exclusive license under such intellectual property to manufacture semiconductors for sale only to CAMD. To the extent that ASMC makes any inventions or comes up with ideas which are improvements
to CAMD’s products or processes, ASMC agrees to promptly disclose such inventions and ideas to CAMD and CAMD is hereby granted a non-exclusive license, with right to grant sublicenses, to use such inventions and ideas to design, make, have
made, use, and sell semiconductors. CAMD may register any patents, copyrights, mask works, or other intellectual property rights pertaining to CAMD products or processes in the PRC and ASMC shall cooperate as reasonably requested by CAMD and shall
not make any such registrations absent the prior written consent of CAMD. 
 

	3.	 	Term and Termination 

 
This Agreement shall have a term commencing on the Effective Date. Beginning on June 30, 2004, this Agreement may be terminated by either
party for convenience upon at least eighteen (18) months prior notice. Thus, this Agreement shall have a term of at least four years, unless terminated for cause. This Agreement may be terminated upon notice for cause by ASMC if CAMD is in breach of
an obligation to pay for products, other than due to products for which there are bona fide disputes on acceptance, yield, or quality, and such breach has lasted for thirty (30) days after ASMC notified CAMD of such breach. Otherwise, either party
may terminate this Agreement for cause upon notice if the other party has breached a material provision of this 

 

 
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Agreement and not cured such breach within the following ninety (90) days. Any notice of termination for failure to cure a breach must be
given within sixty (60) days of the end of the cure period or else a new notice of breach must be given. If this Agreement is terminated other than by CAMD for cause, then CAMD shall be financially responsible for any unused materials purchased by
ASMC for the exclusive use in CAMD products if such material was originally purchased in support of CAMD’s demand forecast covering the upcoming three (3) months; provided, however, that ASMC will process such materials into wafers if requested
by CAMD as though this Agreement remained in effect. 
 

	4.	 	CAMD Personnel On-Site. 

 
CAMD may have one or more representative on site at ASMC to visit the fab and test facilities and to assist with technology transfer
issues; such representative may if he or she wishes witness the testing of the wafers. ASMC will provide to such representative, or to CAMD in California if there is no on-site representative, process and electrical test yield results; current
process specifications and conformity to specifications; calibration schedules and logs for equipment; environmental monitor information for air, gases, and water; documentation of operator qualification and training; documentation of tracability
through CAMD’s operation; CAMD process verifications information; and CAMD trouble reports. 
 

	5.	 	Choice of Law 

 
This Agreement shall be governed by and construed under the 1980 United Nations Convention on Contracts for the International Sale of
Goods (the “Convention”), or, to the extent that the Convention does not settle the rights and obligations of the parties, the laws of Hong Kong, excluding that body of law governing choice of law. 
 

	6.	 	Miscellaneous 

 

	 	a.	 	Language. 

 
This Agreement has been made in English language and all documents and communications between the Parties hereto shall be in English
language. 
 

	 	b.	 	Survival 

 
All terms and conditions destined to survive the term of this Agreement shall survive. 
 

	 	c.	 	Entire Agreement 

 

 
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The terms
and conditions contained in this Agreement and its exhibits constitute the entire agreement between the parties with respect of its subject matter and shall supersede any and all prior communications, representations, agreements and/or
understandings, either oral or written, between the parties with respect to such subject matter. No agreement or understanding varying or extending the terms and conditions contained in this Agreement and its exhibits shall be binding upon either
party hereto unless made in writing and signed by duly authorized representatives of the parties. 
 

	 	d.	 	Interpretation 

 
If any provision of this Agreement is held invalid, illegal or unenforceable under a given circumstance, such provision will be reformed
only to the extent necessary and in such a manner to effect the original intention of the parties under such circumstance; such provision to continue to apply unreformed under other circumstances and all remaining provisions continue unchanged in
full force and effect. The headings in this Agreement are inserted for convenience and identification only and are not intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any of its provisions. This
Agreement shall be construed as though it was prepared by both parties. 
 

	 	e.	 	Waiver 

 
Any failure by either party to strictly enforce any provision of this Agreement will not operate as a waiver of that provision or any
subsequent default or breach of the same or a different kind. Waiver of any breach of any provision of the Agreement must be in writing signed by an officer of the party affected and such waiver shall not be deemed to be a waiver of any preceding or
succeeding breach of the same or any other provision. 
 

	 	f.	 	Notices 

 
Notices under this Agreement must be in writing and will be deemed given when delivered personally, when sent by email or facsimile (with
confirmation of receipt), or when sent by international courier service (with fees prepaid and confirmation of receipt requested). Notices will be addressed to the parties at the addresses appearing below under Authorized Signatures, but each
party may change the address by written notice in accordance with this Section 8f. 
 

	 	g.	 	Dispute Resolution 

 
The parties shall exercise all commercially reasonable efforts to settle between themselves in an amicable way any dispute which may arise
out of or in connection with this Agreement. Should a dispute nonetheless arise, the parties desire to avoid the burdens and delay 

 

 
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that often accompany traditional litigation to the maximum extent possible and, therefore, agree that any dispute, controversy or claim
concerning or relating to this agreement (a “Dispute”), shall be resolved in the following manner: 
 

	 	(i)	 	Negotiations. 

 
The parties shall use all reasonable efforts to resolve the Dispute through direct discussions. The senior management of each party
commits itself to respond promptly to any such Dispute. Within twenty (20) days of written notice that there is a Dispute, the parties shall meet in Hong Kong or some other location mutually agreeable to the parties or confer by telephone in an
effort to reach an amicable settlement and to explore alternative means to resolve the dispute expeditiously (e.g., mediation). 
 

	 	(ii)	 	Arbitration 

 
If the Dispute, has not been resolved as a result of the procedure in subsection (i) above or otherwise within sixty (60) days of the
initial written notice that there is a Dispute (or such additional time to which the parties may agree), the matter shall be resolved by final and binding arbitration in accordance with the rules of the World Intellectual Property Organization. The
place of arbitration shall be in Hong Kong, using the facilities of the Hong Kong International Arbitration Centre if possible. There shall be three arbitrators, each of whom shall be neutral, independent and impartial. The language of the
arbitration shall be English. Judgment on an arbitral award may be entered by any court of competent jurisdiction, or application may be made to such a court for judicial acceptance of the award and any appropriate order including enforcement. The
prevailing party in the arbitration shall be entitled to its costs and reasonable attorneys fees. The award (including legal fees) rendered by the arbitrator(s) shall (a) set forth findings of fact and conclusions of law; (b) be supported by
substantial evidence; (c) correctly apply the Convention or Hong Kong law, as the case may be; and (d) provide only the remedies that would otherwise be available pursuant to a judicial proceeding in Hong Kong. 
 

	 	(iii)	 	Requirements for Award 

 
Within thirty (30) days after the last day of the arbitration proceeding, the arbitrator(s) shall deliver to the parties and their counsel
a draft of the proposed award, including proposed written findings of fact and conclusions of law. Within fifteen (15) days following the delivery of such draft, the parties may deliver written comments to the arbitrator(s), a copy of which comments
shall be sent to the other parties and their counsel. Within thirty (30) days after the fifteen-day comment period, the arbitrator(s) shall make a final award, including written findings of fact and conclusions of law. 
 

 
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	 	(iv)	 	Enforcement of Award 

 
Provided that the arbitration award sets forth findings of fact and conclusions of law, and the arbitrator(s) have complied with the
procedures set forth in subsection (iii) above, such award shall be binding and final, except as otherwise provided by Hong Kong law, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. A
FAILURE BY THE ARBITRATORS TO MAKE FINDINGS OF FACT AND CONCLUSIONS OF LAW SHALL BE DEEMED TO RENDER THE AWARD NON-BINDING, AND SHALL BE GROUNDS FOR OVERTURNING THE AWARD. THE PARTIES SPECIFICALLY AGREE THAT IF THE AWARD DOES NOT SET FORTH FINDINGS
OF FACT AND CONCLUSIONS OF LAW, OR IF THE ARBITRATOR(S) DO NOT FOLLOW THE PROCEDURES SET FORTH IN SUBSECTION 8g(iii) ABOVE, THE AWARD SHALL BE NON-BINDING. 
 
Either party may petition any court of competent jurisdiction to vacate, confirm or modify any award in respect of intellectual property
rights where the arbitrator(s) findings of fact are not supported by substantial evidence or the arbitrator(s)’ conclusions of law are erroneous. 
 

	 	(v)	 	Obtaining Information 

 
If one or more of the parties desires to obtain information from the other in order to prepare for the arbitration hearing, the parties
shall attempt in good faith to agree on a plan for such an exchange as may be strictly necessary yet expeditious (e.g., obtaining documents, and the like). Should the parties fail to reach agreement, any party may request that a joint conference be
held in person or by telephone with the arbitrators to explain points of agreement and disagreement. The arbitrators shall thereafter promptly determine the scope of and time allowed for any such information exchange as is permitted by such
commercial rules, except that in no event shall a party be prohibited against its desires from the following discovery: five (5) depositions of one (1) day each, of which no more than three (3) may be of employees of the other party; two (2) sets of
interrogatories comprising a total of thirty-five (35) questions; two (2) sets of requests for admissions comprising a total of ten (10) requested admissions; and two sets of document requests asking for documents relevant to the Dispute.

 

	 	(vi)	 	Continuing Duties 

 
Each party is required to continue to perform its obligations under this Agreement, including without limitation the obligations under
Section 4. 
 

	 	(vii)	 	Terms of Agreement Control 

 

 
** CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

13 

 
CONFIDENTIAL TREATMENT REQUESTED 
 
 

 
In the
event of any inconsistency or discrepancy between the procedural matters set forth in this Agreement and the above-referenced commercial arbitration rules, the provisions of this Agreement shall control. This Agreement to arbitrate shall be
specifically enforceable under the prevailing arbitration law. 
 

	 	(viii)	 	Court Relief 

 
Notwithstanding any of the foregoing, CAMD may request injunctive and/or equitable relief either from the arbitrator or from a court of
competent jurisdiction in order to protect its rights or property, including without limitation for breach of the confidentiality obligations, use restrictions, and scope of license limitations under Section 4. 
 

	 	h.	 	Assignment 

 
ASMC shall not transfer or assign this Agreement and its rights or obligations under this Agreement, including by merger, without
CAMD’s prior written consent. CAMD shall have the right to transfer or assign this Agreement and its rights or obligations under this Agreement to any person or entity acquiring all or substantially all of the assets or stock or CAMD, whether
by merger or otherwise. Any attempted assignment in violation of this Section 8h will be void. This Agreement will be binding upon, and inure to the benefit of, the parties and their respective successors and assigns. 
 

	 	i.	 	Facsimile and Counterpart Signatures 

 
This Agreement may be executed by facsimile and in counterparts, each of which shall be deemed to be an original and all of which together
shall be deemed to be one and the same instrument. 
 
Authorized Signatures 
 
In order to bind the parties to this Manufacturing Agreement, their duly authorized representatives have signed their names below on the dates indicated. 
 

	 Advanced Semiconductor Manufacturing Corporation Of Shanghai
	 	 	 	 California Micro Devices Corporation

	
	 By
	 	
	 	 	 	 By
	 	      

	 Title:
	 	      

	 	 	 	 Title:
	 	      

 

 
** CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

14 

 
CONFIDENTIAL TREATMENT REQUESTED 
 
 

 

	 Date Executed:
	 	      

	 	 	 	 Date Executed:
	 	      

	
	 Address:
  
      

  
      

  
      

	 	 	 	 Address:
  
      

  
      

  
      

	
	 Fax Number:
	 	      

	 	 	 	 Fax Number:
	 	      

	
	 Email Address:
	 	      

	 	 	 	 Email Address:
	 	      

 

 
** CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

15 

 
CONFIDENTIAL TREATMENT REQUESTED 
 
 

 
Exhibit A

 
Pricing 
 

	 Family

	    	 Process

	    	 Wafer Size

	    	 Expected Die Per Wafer

	    	 Wafer Cost

	  	 Layers

	    	 Comments

	    	 Reject DPW

	 PWR025
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 PWR101
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 PWR150
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 PWR330
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 T239
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 CSPEMI201
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 CSPEMI202
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 CSPEMI306
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 CSPEMI307
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 CSPESD304
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 PACDN040
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 PACKBME
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 SZ1284-02
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

	 SZ1284-04
	    	 **
	    	 **
	    	 **
	    	 $ **
	  	 **
	    	 **
	    	 **

 
Additional
Processing: 
 

	 Backlap & Gold
	  	 $ **

	 	  	

	 Backlap Only
	  	 $ **

	 	  	

 
Notes:

 

	 	1	 	CAMD reserves the right to reject any wafer that exhibits die per wafer yields below those listed under the column heading of Reject DPW 

 

	 	2	 	Wafer cost per layer for ** inch wafer                    $ **

 

	 	3	 	Wafer cost per layer for ** inch wafer                    $ **

 

	 	4	 	Adder for Epi, if required 

 

 
** CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

16 

 
CONFIDENTIAL TREATMENT REQUESTED 
 
 

 
Exhibit B

 
Yield Bonus Calculation Mechanism and Example

 

	 1
	  	 CAMD will provide ASMC with a bonus payment when the die per wafer yield exceeds, over a six month period the expected
die per wafer target
	  	 
	
	 2
	  	 This bonus will be paid on specific devices
	  	 
	
	 3
	  	 Below if an example of how this bonus will be calculated:
	  	 
	
	 	  	 Product:
	  	 CAMDXYZ

	
	 	  	 Expected die per wafer:
	  	 3,000

	
	 	  	 Actual average die per wafer (average over all wafers):
	  	 3,500

	
	 	  	 Number of wafers delivered by ASMC in the six-month period on specific product:
	  	 5,000

	
	 	  	 Additional die generated over the six-month period:
	  	 2,500,000

	
	 	  	 Equivalent number of wafers represented by better yields:
	  	 833

	
	 	  	 Profit sharing in terms of wafers (50%)
	  	 416

	
	 	  	 Agreed upon cost per wafer
	  	 $**

	
	 	  	 Bonus payment
	  	 $**

	
	 4
	  	 Payment to be applied six months after the expected die per wafer is agreed to
	  	 

 

 
** CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

17 

 
CONFIDENTIAL TREATMENT REQUESTED 
 
 

 
Exhibit C

 
Process/Product Transfer 
 

	 Task

	  	 New Process

	  	 New Product

	  	 Responsible

	 Transfer Process Documentation
	  	 X
	  	 NA
	  	 CAMD

	 Study Process and Highlight Differences
	  	 X
	  	 NA
	  	 ASMC

	 Resolve Differences
	  	 X
	  	 NA
	  	 CAMD/ASMC

	 Document Process Flow
	  	 X
	  	 NA
	  	 ASMC

	 Select Product vehicle
	  	 X
	  	 X
	  	 CAMD

	 Transfer Reticle Database
	  	 X
	  	 X
	  	 CAMD

	 Generate Reticles
	  	 X
	  	 X
	  	 ASMC

	 Start Lots
	  	 X
	  	 X
	  	 ASMC

	 Characterize Lots
	  	 X
	  	 X
	  	 CAMD

	 Reliability Studies
	  	 X
	  	 NA
	  	 CAMD

	 Turn on Production
	  	 X
	  	 X
	  	 CAMD/ASMC

 

 
** CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

18 

 
CONFIDENTIAL TREATMENT REQUESTED 
 
 

 
Exhibit D

 
Cancellation Fee 
 
 
The cancellation fee payable by CAMD upon cancellation of delivery of each wafer in a purchase order pursuant to Section 3e will be calculated as follows: 
 
CF = [(CS divided by TS) x (P—R)] + R +T 
 
where 
 
‘CF’ means the cancellation fee payable by CAMD. 
 
‘CS’ means the number of completed manufacturing steps as at the date of cancellation.

 
‘TS’ means the total number of
manufacturing steps required to produce the wafers had there not been any cancellation. 
 
‘P’ refers to the purchase price of the wafer as set out in the applicable CAMD purchase order as accepted by ASMC. 
 
‘R’ refers to the raw wafer cost incurred by ASMC. 
 
‘T’ refers to any applicable sales, use, excise, or
other similar taxes levied on or otherwise payable in connection with the Cancellation Fee. If the cancelled wafers are physically shipped out of China, then the tax adder does not applies. 
 

 
** CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

19License Agreement

 
Exhibit 10.14

 
CONFIDENTIAL TREATMENT REQUESTED

 
 
 
 
LICENSE AGREEMENT

 
This Agreement is made this 30th day of
September, 2000 between: 
 

	 FLIP CHIP TECHNOLOGIES, L.L.C.
	 	 )
	  	 
	 a Delaware limited liability company,
	 	 )
	  	 (referred to as “FCT”)

	 having a principal place of business at
	 	 )
	  	 
	 3701 E. University Avenue
	 	 )
	  	 
	 Phoenix, Arizona 85034, USA
	 	 )
	  	 
	 	 	 )
	  	 
	 and
	 	 )
	  	 
	 	 	 )
	  	 
	 CALIFORNIA MICRO DEVICES CORP.
	 	 )
	  	 
	 a California corporation
	 	 )
	  	 (referred to as “CMD”)

	 having a principal place of business at
	 	 )
	  	 
	 215 Topaz Street
	 	 )
	  	 
	 Milpitas, California 95035
	 	 )
	  	 
	  

	 	 )
	  	 

 
Background 
 
FCT has
developed Confidential Information, trade secrets, patents and know-how regarding Ultra CSPTM wafer
bumping in the manufacture of flip chip integrated circuits; and certain Confidential Information, trade secrets, patents and know-how regarding the technology of redistributing bond pads on integrated circuits using a Redistribution Layer (RDL) to
facilitate wafer bumping in the manufacture of flip chip integrated circuits. 
 
On February 11, 1999, CMD and FCT entered into a License Agreement pursuant to which CMD received a license to practice the Ultra CSPTM Technology on non-silicon substrates. CMD now desires access to such Confidential Information, trade secrets, patents and know-how and to obtain
the assistance of FCT for implementing the technology, along with a license to use the Confidential Information, trade secrets, patents and know-how to produce flip chip integrated circuits on silicon wafers, with and without RDL as practiced for
Ultra CSPTM. 
 
FCT is willing to license CMD to use the Confidential Information, trade secrets, patents and know-how in accordance with this Agreement.
A separate royalty-free cross license agreement between the parties defines a technology transfer to FCT of CMD proprietary wafer thinning technology. 
 
Therefore FCT and CMD agree as follows: 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

	 License Agreement
	 	 Page 1 of 11
	 	 Confidential

 
CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
1.    Definitions 
 
1.1    “Ultra CSPTM” means the solder bumping process practiced by FCT at the effective date of this Agreement using an under-bump metal (UBM) structure
patterned prior to deposition of the solder in the form of a solder ball in conjunction with the manufacture of flip chip integrated circuits. 
 
1.2    “Confidential Information” means unpublished research and development information, know-how, trade secrets, and
technical data in the possession of, or under development by FCT, at the effective date of this Agreement used by FCT to practice the Ultra CSPTM Technology, including but not limited to those items specified in Attachment C, except as noted in Paragraph 4.1 below. Confidential Information includes, but is not limited to, any documents or
information provided under any prior Non-Disclosure Agreement (NDA) between the parties that are not in the public domain, or have not been published. Information in the public domain that has been published without the involvement of CMD, is not
Confidential Information. 
 
1.3    “Improvement” means any modification of the Ultra CSPTM Technology, or the equipment or materials used for Ultra CSPTM and which tend to improve
the Ultra CSPTM Technology, or make the process more reliable, less expensive, or otherwise more
advantageous as compared with the Ultra CSPTM Technology initially disclosed by FCT pursuant to this
Agreement. 
 
1.4    “Licensed Site”
means CMD’s facility located at Milpitas, California. Additional sites may be licensed based on additions to Attachment B and in accordance with the provisions noted in Section 4 below. 
 
1.5    “Wafer” means flat disks formed from
silicon substrate material from which electronic devices are produced, typically in diameters of 4, 5, 6, 8, or 12 inches, the devices from which are intended for sale to a third party. 
 
1.6    “Packages” means finished flip chip integrated circuit assemblies, which include at
least one integrated circuit die and at least one substrate, joined together by solder balls. 
 
1.7    “Affiliate” means any corporation or other business entity, which directly or indirectly, controls or is controlled by, or is under common control with a party to
this Agreement. 
 
1.8    “Patents”
means all patents throughout the world owned by FCT covering any aspect of the Confidential Information, know-how, and trade secrets or manufacturing processes disclosed under this Agreement. 
 
1.9    “Trade Secrets” means information of a
technical nature, such as formula, manufacturing processes or machines, materials, inventions, and research projects; business data such as costs, profits, markets, sales, customer lists, plans for future development, and other information of a
similar nature not generally available to the public. 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

	 License Agreement
	 	 Page 2 of 11
	 	 Confidential

 
CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
2.    Disclosure of Confidential Information 
 
2.1    Within thirty (30) days of the effective date of
this agreement, FCT will disclose Confidential Information regarding the Ultra CSPTM Technology
sufficient for CMD to practice production solder bumping of Wafers ranging from 4 inch (100mm) diameter to 8 inch (200mm) diameter. 
 
2.2    The disclosure of Confidential Information regarding the Ultra CSPTM Technology described in Paragraph 2.1 above will include written documentation directed to the subject matter, set forth in Attachment A. Written
documentation will be provided at CMD’s request, given prior documentation provided under the previous License Agreement dated February 11, 1999. 
 
2.3    FCT warrants that the written documentation, material lists, drawings, specifications, instructions, and other Confidential
Information supplied to CMD will be the same as those used by FCT as of the effective date of this Agreement in the practice of the Ultra CSPTM Technology in FCT’s production facility, and that it comprises information sufficient for one skilled in the art to practice that Technology. CMD expressly agrees that the foregoing warranty is
in lieu of all other warranties, express or implied. 
 
2.4    CMD agrees that the disclosure in this Section does not include the transfer of any physical equipment or materials, other than documentation, and that CMD will bear the cost of acquiring any equipment
and/or materials that may be required to practice the Ultra CSPTM Technology at the Licensed Site.

 
3.    Duty to Hold
Confidential Information In Confidence 
 
3.1    CMD agrees not to disclose Confidential Information to any third party, except as stated in this section, and to take such precautions to prevent disclosure of Confidential Information by using the same
degree of care taken to safeguard CMD’s own proprietary information. 
 
3.2    CMD agrees to limit disclosure of Confidential Information to those CMD employees having a reasonable need to know such Confidential Information and for CMD to practice the Ultra CSPTM Technology in accordance with the terms of this Agreement. 
 
3.3    CMD is not obligated to hold in confidence any
information that appears in issued patents or printed publications, nor any information that is shown to be in the public domain for reasons other than a breach of this Agreement, nor any information shown by CMD’s written records to have been
in CMD’s possession prior to disclosure of such information by FCT, nor any information that has legally come into CMD’s possession through channels independent of FCT. 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

	 License Agreement
	 	 Page 3 of 11
	 	 Confidential

 
CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
4.    License 
 
4.1    FCT grants to CMD, during the term of this Agreement, a non-exclusive, personal license to use the
Ultra CSPTM Technology, and to make and sell products embodying Ultra CSPTM Technology and for CMD to produce solder balls on Wafers according to the Ultra CSPTM Technology including a license to use all FCT Patents, trade secrets, know-how, Confidential Information and other
documentation specific to the subject, required to enable CMD to practice the Ultra CSPTM Technology,
including but not limited to those items described in Attachment C. Except as provided in Paragraph 10.1 below, this license does not include Improvements, embodied either by patents or trade secrets, that comprise fundamentally different
technologies from those in existence as of the effective date of the Agreement. Attachment C items show in red italics are considered fundamentally different technologies as described in Paragraph 10.1. 
 
4.2    The license granted in Paragraph 4.1 above is
limited to practice of the Ultra CSPTM Technology at the Licensed Site, and CMD agrees not to practice
the Ultra CSPTM Technology at any other site not covered by the provisions in Section 4. CMD may change
the location of the Licensed Site following written notice to FCT, but may operate only one Licensed Site at a time. CMD may operate more than one Licensed Site with FCT’s prior written consent to add a new site, and a payment of $** per site.
Any engineering assistance requested by CMD for additional sites shall be provided by FCT, as available, for $** per man-day, plus travel, living, and other reasonable expenses. 
 
4.3    CMD agrees not to store or maintain any FCT Confidential Information, or copies, at any site other
than a Licensed Site, and its Corporate Offices. Upon termination of this Agreement, a copy of all materials, correspondence, Confidential Information, and other documentation may be retained in the files of CMD’s General Counsel. 
 
4.4    The license granted by Paragraph 4.1 above is
personal to CMD. CMD’s license does not include the right to sub-license others to use the Confidential Information and/or to grant to others the right to make flip chip integrated circuits according to the Ultra CSPTM Technology. 
 
4.5    The license granted in Paragraph 4.1 above is subject to and conditioned on the payment of royalties specified in Section 7
below. 
 
5.    Equipment/Materials Purchase 
 
5.1    The parties agree that none of the fees payable to FCT under this Agreement are payment for any equipment or materials. CMD agrees to bear the cost for acquiring any equipment and/or materials
required to practice the Ultra CSPTM Technology. 
 
5.2    FCT will disclose to CMD an equipment set preferred
by FCT for practicing the Ultra CSPTM Technology. The parties agree that the license granted is not
subject to CMD’s purchase of the equipment set recommended by FCT. CMD agrees that the ability to successfully practice the Ultra CSPTM Technology may be jeopardized if a different equipment set is used. FCT does not warrant that the process disclosures will function in the same manner for CMD as they do for FCT, if CMD uses a
different equipment set. 
 
5.3    The
Ultra CSPTM Process to be disclosed includes the use of proprietary materials specially formulated by
FCT. CMD understands that the ability to successfully practice the Ultra CSPTM Process may be jeopardized
if different materials are used. CMD agrees that some materials used by FCT are considered Confidential Information, and CMD agrees not to reverse engineer the materials formulation without the prior written consent of FCT. 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

	 License Agreement
	 	 Page 4 of 11
	 	 Confidential

 
CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
6.    Fee for License and Technology Transfer 
 
6.1    CMD agrees to pay FCT US $** as a no-recourse,
non-recoverable, non- refundable advance against future royalty payments for the license of the Ultra CSPTM Technology. CMD agrees to pay FCT the no-recourse advance based on the following schedule: 
 

	 	a.	 	A payment of US $** on license execution. 

 

	 	b.	 	A payment of US $** four (4) months from the date of execution of this Agreement. 

 
6.2    At CMD’s request, FCT agrees to provide concurrent training regarding the Ultra
CSPTM Technology at FCT’s Phoenix, Arizona facility for up to five CMD engineers and/or technicians, all of
whom are to receive training during the same period of time, for up to four weeks. CMD agrees to bear all costs, including transportation and living expenses, for its employees receiving training at FCT. CMD agrees to provide at least three
engineers, who are responsible for the technology transfer, for training and consultation at FCT’s Phoenix, Arizona facility. 
 
6.3    At CMD’s request, FCT will provide up to 4 man-weeks of engineering support at the Licensed Site based on a schedule to be
mutually determined. CMD agrees to provide necessary resources at the Licensed Site, including equipment, materials, and personnel, to facilitate this phase of the technology transfer. CMD agrees to reimburse FCT for all costs of this phase of the
technology transfer, including transportation and living expenses, and other reasonable related expenses, incurred by FCT’s engineers to render technical assistance and support. Should CMD desire FCT engineering support for a longer period, CMD
agrees to pay related travel expenses and the sum of $** per day for each engineer on-site. FCT will provide additional engineering resources on an as available basis. 
 
7.    Royalties 
 
7.1    In addition to the license fee noted in Section 6 above, CMD agrees to pay to FCT a royalty for
use of the Ultra CSPTM Technology for Wafers bumped, in accordance with the following schedule:

 

	 Period

	 	 Royalty Rate

	 1st through 5th years of term
	 	 US $** per Wafer, US $** of which has been pre-paid pursuant to Paragraph 6.1 above, for the first ** Wafers; thereafter
US $** per Wafer

	
	 6th through 10th years of term
	 	 US $** per Wafer

 
 
 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

	 License Agreement
	 	 Page 5 of 11
	 	 Confidential

 
CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
The Royalty schedule and term will commence based on first commercial production Wafer output after the effective date of
this Agreement. Wafers that do not utilize FCT’s Ultra CSPTM Technology are not subject to this
royalty, however, improvements to the Ultra CSPTM Technology developed by CMD will not limit or affect
the above royalty rate in any way. The royalty per Wafer is for Wafers of any diameter and does not include Wafers used for setup or process monitoring. 
 
The Royalty payment in years 6 through 10 is based on ** Wafer volume per week. If actual average weekly Wafer volume as measured over a given quarter is
greater than ** Wafers per month, the royalty rate will decrease to $** per Wafer. If actual average weekly Wafer volume as measured over a given quarter is less than ** wafers per month, CMD and FCT agree to renegotiate the royalty rate within a
range of $** to $** per Wafer, based on actual average Wafer output. If competitive pricing requires a lower royalty rate, CMD may request a reduction in the royalty rates stated above for specific products. CMD and FCT will use their best efforts
to adjust royalty rates to allow CMD to be price competitive. 
 
8.    Reports/Payments/Records/Right of Audit 
 
8.1    CMD agrees to pay royalties due within thirty (30) days after the close of each calendar quarter during the term of this Agreement. 
 
8.2    Simultaneous with the payment of the royalties
required, CMD agrees to provide FCT with a quarterly statement showing the basis for computation of royalties being paid pursuant to Paragraph 8.1 above. 
 
8.3    To demonstrate the basis for computing royalties owed, CMD agrees to include in the quarterly statement, a list of the CMD
tracking numbers for each Wafer lot processed during each calendar quarter using the Ultra CSPTM
Technology. CMD agrees to include in the report the number and diameter of the Wafers in each lot, and the date on which each lot was processed. 
 
8.4    CMD agrees to maintain accurate records/documents for solder-bumping Wafers during the term of this Agreement. For each Wafer
lot processed using the Ultra CSPTM Technology, CMD agrees to include the general nature and type of the
integrated circuits or electronic devices, document any problems encountered in producing solder bumped devices, and supply test data regarding quality parameters of the solder bump process, to the extent that such data is ordinarily collected by
CMD. 
 
8.5    FCT, at its own expense, will
have the right to have an accountant/auditor inspect CMD’s records for purposes of audit for up to two (2) years after the calendar quarter to which records pertain, given at least two (2) weeks written notice. If inspection by FCT’s
accountant/auditor reveals that royalties reported and paid by CMD for a calendar quarter were understated by more than ** percent (**%), then CMD agrees to reimburse FCT for reasonable costs incurred to perform such audit. 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

	 License Agreement
	 	 Page 6 of 11
	 	 Confidential

 
CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
9.    Technology Reports/Status Reviews 
 
9.1    During the term of this Agreement, CMD will provide
FCT a written report once each calendar quarter which includes measured reliability data recorded for flip chip integrated circuits having solder bumps applied by in accordance with the Ultra CSPTM Technology, to the extent that such data is ordinarily collected by CMD. FCT will have the right to consolidate such data with data recorded by FCT
and/or with data reported by other parties licensed by FCT, and to publish such merged data, provided that the reliability data will not be published in a manner that identifies CMD as the source of any particular data. 
 
9.2    CMD agrees to participate in jointly scheduled
meetings with FCT, to review CMD’s use of the licensed Ultra CSPTM Technology, including the number
of Wafers processed, problems experienced in using the Ultra CSPTM processes, and generally to exchange
information and improvements regarding the process. CMD and FCT agree to share information on market conditions, trends, and requirements and review priorities related to product and/or process development and improvements. 
 
10.    Improvements

 
10.1    Periodically and as soon as
is practicable during the term of this Agreement, FCT plans to release Improvements to the Ultra CSPTM
Technology in addition to those specified in Attachment C. CMD will be offered the opportunity to license the practice of all such “major” improvements (shown in red italics on Attachment C) and any additional Improvements under the terms
and conditions of this Agreement, for a reasonable fee commensurate with the nature of the Improvements. CMD acknowledges that all Improvements disclosed by FCT are Confidential Information. CMD agrees to treat all Improvements in the same manner as
the original Ultra CSPTM Technology disclosed. 
 
10.2    Within a reasonable period after the Improvements
are installed at CMD’s licensed site, FCT agrees to audit CMD to certify compliance. To the extent that CMD is certified as compliant with the most recent process, FCT will agree to provide back-up production and/or early qualification of
products in parallel with CMD’s production ramp-up. Royalties for any new process version will commence based on first commercial production Wafer output and in accordance with the provisions in Section 7 above. 
 
11.    Non-Solicitation

 
11.1    During the term of this
Agreement, and for a three (3) year period thereafter, neither party will solicit for employment or consultation any current employee, without the written consent of the other party. 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

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12.    Term and Termination 
 
12.1    Unless terminated in accordance with other
provisions of this Section, this Agreement will expire ten (10) years from the effective date. At expiration of the ten (10) year term, CMD will retain a paid-up, perpetual and royalty-free license to practice the Ultra CSPTM Technology disclosed under this License Agreement. 
 
12.2    In addition to any other right of termination, either party may terminate this Agreement for a
material breach of the Agreement by the other party, on thirty (30) days prior written notice, specifying the nature of the material breach. Assuming that a material breach has not been cured within the thirty (30) day notice period, or another
mutually agreed schedule is set in writing, this Agreement will terminate on the expiration of the thirty (30) day period. 
 
12.3    By way of example, and without limitation, CMD’s failure to pay license fees when due, failure to pay royalties when due,
unauthorized use or disclosure of Confidential Information, and any grant of a sub-license will each be considered a material breach of this Agreement. 
 
12.4    CMD’s obligation to protect Confidential Information under Section 3 of this Agreement will survive the termination of
this Agreement for a period of five (5) years. 
 
12.5    Upon early termination of this Agreement by FCT pursuant to Paragraph 12.2 above, CMD agrees to immediately cease any further practice of the Ultra CSPTM Technology, and the use of Confidential Information. CMD agrees that FCT may seek injunctive relief to enforce this provision, independent of, and
in addition to, any monetary or other relief sought for any breach of the License Agreement. 
 
12.6    Upon termination of this Agreement pursuant to Paragraph 12.2 above, CMD will immediately return all drawings, specifications, instructions, and other Confidential
Information received from FCT under the Agreement, along with any and all copies or derivations. Upon termination of this agreement, a copy of all materials, correspondence, Confidential Information, and other documentation may be retained in the
files of CMD’s General Counsel. 
 
12.7    Any termination of this Agreement will not relieve CMD of its obligations to pay accrued royalties owed, or to provide any reports required by the terms of this Agreement, nor will it relieve FCT of any
obligation incurred before termination became effective. 
 
13.    Disclaimer of Other Warranties 
 
13.1    This Agreement constitutes the entire agreement between the parties regarding the subject matter, and neither of the parties to this Agreement has relied on any representations or warranties,
other than those expressly set forth in this Agreement. Each party disclaims, and waives, any obligation, liability, right, claim, or demand, in contract, warranty, tort, or otherwise, that is not expressly assumed in this Agreement. In no event
will either party be liable for any indirect, incidental or consequential damages of any kind, including without limitation, damages for product liability in connection with this Agreement. 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

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13.2    Nothing in this Agreement will be construed as conferring a right for either party to use any
trademark or trade name of the other party, in advertising, publicity or otherwise, except as stated or as agreed to in writing by both parties. 
 
14.    Indemnification 
 
14.1    FCT agrees to indemnify, and hold CMD harmless, against any damages claimed by any third party
for infringement of any patent, intellectual property, and/or other proprietary rights based on CMD’s use of the Ultra CSPTM Technology to provide flip chip integrated circuits, provided that such claims arise solely from Wafers and/or integrated circuits that were solder bumped at a Licensed Site, in accordance with the instructions provided by
FCT for practicing the Ultra CSPTM Technology. If CMD notifies FCT of an infringement claim, FCT may, at
its option: (a) modify the Ultra CSPTM process so that it becomes non-infringing; (b) procure for CMD a
license to use the infringing technology or process or; (c) dispute the infringement claim, at its expense. FCT’s obligation to indemnify CMD for losses resulting from patent infringement and/or infringement of other proprietary rights will not
exceed the amount of US $500,000.00. 
 
14.2    CMD agrees to notify FCT in writing of any infringement claim or threatened infringement claim made known to CMD and/or asserted against CMD or its customers related to the use of the Ultra CSPTM Technology. CMD shall provide written notice within thirty (30) days of the date CMD receives notice of the
existence or threat of such claim. CMD’s failure to provide prompt notice will cancel and nullify FCT’s obligation to indemnify CMD. 
 
14.3    CMD agrees to indemnify and hold FCT harmless against any product liability claims asserted against FCT by customers of CMD.

 
15.    Confidentiality
of License Terms 
 
15.1    The parties
agree that the terms of this Agreement are Confidential and will not be disclosed except as required by law, including the disclosure requirements of the Securities Laws of the United States. Either party may, however, issue a press release and/or
advise third parties that FCT has granted CMD a non-exclusive, license to practice the Ultra CSPTM
Technology. Any press releases shall be subject to review and approval by the other party and approval shall not be unreasonably withheld. Either party may disclose the terms of this Agreement in documents filed in conjunction with a court
proceeding brought to interpret or enforce the terms of the license or related agreements, or as may be compelled by a court of competent jurisdiction, subject to notice to the other party. 
 
16.    Force Majeure

 
16.1    Neither Party will be liable
for nonperformance due to: a labor dispute, strike, act of war, insurrection, riot, accident, fire, flood, acts of God, governmental action, supply of raw material, utility shortage, or a similar cause beyond each party’s reasonable control and
through no fault or negligence. The Party affected will use reasonable effort to remedy the situation and neither Party will be liable for losses, damages, or costs caused by an inability to remedy the situation. The Party prevented from meeting
obligations under this Agreement will promptly give written notice of the basis for invoking Force Majeure, any obligations which are suspended due to Force Majeure, identify remedial measures being taken and provide an estimate of the duration of
the Force Majeure conditions. 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

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17.    Miscellaneous 
 
17.1    This Agreement has been made and construed under
the laws of the State of Arizona, and the parties agree to submit to the jurisdiction and venue of the courts of the State of Arizona regarding any actions to interpret or enforce the provisions of this Agreement. 
 
17.2    The rights and license granted in this Agreement
are personal to CMD and may not be assigned or otherwise transferred without the prior written consent of FCT. 
 
17.3    This Agreement supersedes all prior understandings between the parties and contains the entire Agreement between the parties concerning this subject matter. 
 
17.4    Any notice required will be delivered by
registered or certified mail, return receipt requested, postage prepaid, and will be addressed to each party at the address first set forth above, or at any other address that either party may subsequently specify in writing during the term of this
Agreement. 
 
17.5    No modification or waiver
of any portion of this Agreement will be made without the written consent of both parties unless any portion is in violation of applicable law. 
 
17.6    Each provision of this Agreement will be considered severable, and if, for any reason, any provision or provisions are
determined to be invalid or contrary to law, any invalidity will not impair the operation of or affect the remaining provisions of this Agreement. 
 
17.7    All disputes arising directly under the terms of this Agreement shall be resolved based on the following: (a) senior
management representatives of both parties shall meet to attempt to resolve any disputes, by meeting at least twice during a thirty (30) day period; (b) if the senior management representatives cannot resolve the dispute, either party may begin
litigation proceedings; (c) if legal action is instituted to interpret or enforce any term or provision of this Agreement, then the prevailing party will be entitled to recover reasonable attorneys’ fees and court costs. 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

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CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
To indicate agreement to the terms and conditions of this Agreement, the parties have had their designated representatives
sign effective as of the date first set forth above. 
 

	 	 	 	 	 FLIP CHIP TECHNOLOGIES, L.L.C.
 (FCT)

	
	 September 30, 2000

	 	 	 	 /s/    DON R. MAY,
III        

	 Date
	 	 	 	 By:
	 	 Don R. May, III

	 	 	 	 	 	 	 Title:  
	 	 Vice President

	
	 	 	 	 	 CALIFORNIA MICRO DEVICES CORPORATION
 (CMD)

	
	 September 30, 2000

	 	 	 	 /s/    JEFFREY C.
KALB        

	 Date
	 	 	 	 By:
	 	 Jeffrey C. Kalb

	 	 	 	 	 	 	 Title:  
	 	 President & CEO

 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

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CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
ATTACHMENT A 
 
Technology Transfer Package Summary 
 
Facilities 
 

	 	·	 	Square footage requirements for various capacity levels 

	 	·	 	Facility specifications and recommended layout 

	 	·	 	Utility requirements, consumption rates 

	 	·	 	Gas and chemical requirements and purity levels 

	 	·	 	Environmental, health, and safety assurances 

 
Mask Design 
 

	 	·	 	Mask design software specification and source 

	 	·	 	Mask design flowchart 

	 	·	 	Mask design rules and layout procedures 

	 	·	 	Mask design manual 

 
Process 
 

	 	·	 	Process flow charts 

	 	·	 	Process specifications 

	 	·	 	List of all direct and indirect materials 

	 	·	 	Material consumption algorithms 

	 	·	 	Material specifications 

	 	·	 	Process capability studies 

	 	·	 	Process characterization data 

	 	·	 	Statistical process control data 

	 	·	 	Operator workmanship standards 

 
Equipment 
 

	 	·	 	Equipment specifications 

	 	·	 	Equipment suppliers 

	 	·	 	Equipment lead times 

	 	·	 	Equipment installation guidelines, procedures, and suggestions 

	 	·	 	Equipment characterization procedures and guidelines 

 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

	 Attachment A
	 	 	 	 Confidential

 
CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
Quality and Reliability 
 

	 	·	 	Quality specifications 

	 	·	 	Reliability data 

	 	·	 	Failure analysis policy 

	 	·	 	Failure analysis specifications 

	 	·	 	Operator certification training, testing, and practical requirements 

	 	·	 	Process qualification requirements 

	 	·	 	FMEAs (Failure Mode Effects Analyses) 

	 	·	 	Change control policy and procedures 

	 	·	 	MRB (Material Review Board) policy and procedures 

	 	·	 	Reliability qualification requirements 

 
Staffing 
 

	 	·	 	Direct and indirect headcount for each level of capacity 

	 	·	 	Selection and training guidelines 

	 	·	 	Description of roles and responsibilities 

 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

	 Attachment A
	 	 	 	 Confidential

 
CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
ATTACHMENT B 
 
Licensed Sites 
 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

	 Attachment B
	 	 	 	 Confidential

 
CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
ATTACHMENT C 
 
Materials Specifications 
 

	 MS 2020
	  	 Aluminum Target
	  	 Sputter

	 MS 2021
	  	 Nickel/Vanadium Target
	  	 Sputter

	 MS 2022
	  	 Copper Target
	  	 Sputter

	 MS 2023
	  	 Titanium Target
	  	 Sputter

	 MS 2510
	  	 ** Photoresist
	  	 Resist Coat

	 MS 2511
	  	 **
	  	 Resist EBR

	 MS 2531
	  	 **, Positive Developer
	  	 Resist Develop

	 MS 3010
	  	 **, Copper/Nickel Etchant
	  	 Wet Etch

	 MS 3011
	  	 **, Aluminum Etchant
	  	 Wet Etch

	 MS 3012
	  	 **
	  	 Wet Etch (Spike)

	 MS 3020
	  	 **, Photoresist Stripper
	  	 Strip

	 MS 3522
	  	 ** Rinse Solvent
	  	 BCB EBR

	 MS 3524
	  	 ** Adhesion Promoter
	  	 BCB Coat

	 MS 3540
	  	 **
	  	 BCB Develop

 
Product
Dimensions 
 
Al Thickness 
Nickel/Vanadium Thickness 
Copper Thickness

BCB Thickness 
 
Design Rules 
Design Guide 
 
IMPROVEMENTS 
 
Patents & Patent Applications 
 

	 Method for Forming Chip Scale Package
	  	 Patent Application Filed

	 Chip Scale Package with Large Ductile Solder Balls
	  	 Patent Application Filed

	 Polymer Collar for Solder Bumps
	  	 Patent Application Filed

	 **
	  	 Patent Application Pending

	 **
	  	 Patent Application Pending

 
Trade Secrets

 

	 Method to Assure BCB Adhesion to Silicon Nitride
	  	 Trade Secret

	 Internal Design Rules for Ultra CSPTM Bump on Nitride
	  	 Trade Secret

	 Internal Design Rules for Ultra CSPTM Bump on I/O
	  	 Trade Secret

	 (One BCB Layer)
	  	 
	 Internal Design Rules for Ultra CSPTM for Redistribution
	  	 Trade Secret

	 All Current and Future Process Specifications
	  	 Trade Secret

	 All Current and Future Material Specifications
	  	 Trade Secret

	 All Current and Future Machine Specifications
	  	 Trade Secret

 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

	 Attachment C
	 	 	 	 Confidential

 
CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
Product. Process and Technology Development 
 

	 Low Cost Tooling for **
	  	 New Development

	 Alternative Dielectrics
	  	 New Development

	 Improved Al/NiV/Cu Etch
	  	 New Development

	 Multi Layer RDL Structure
	  	 New Development

	 Lead Free Solder Paste
	  	 New Development

 
 
Note:    Red italics designates “major” Improvements according to Paragraph 10.1 of the License Agreement. 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 

	 Attachment C
	 	 	 	 Confidential

 
CONFIDENTIAL
TREATMENT REQUESTED 
 
 
 
First Amendment to License Agreement 
 
This First Amendment to License Agreement (this “ First
Amendment”) dated as of this 13th day of December, 2002 (the “Amendment Effective Date”) is made by and between the parties listed below and amends the License Agreement (the “Original Agreement”) between such parties made
the 30th day of September, 2000: 
 

	 FLIP CHIP TECHNOLOGIES, L.L.C.
	 	 )
	  	 
	 a Delaware limited liability company,
	 	 )
	  	 (referred to as “FCT”)

	 having a principal place of business at
	 	 )
	  	 
	 3701 E. University Avenue
	 	 )
	  	 
	 Phoenix, Arizona 85034, USA
	 	 )
	  	 
	 	 	 )
	  	 
	 and
	 	 )
	  	 
	 	 	 )
	  	 
	 CALIFORNIA MICRO DEVICES CORPORATION
	 	 )
	  	 
	 a California corporation
	 	 )
	  	 (referred to as “CMD”)

	 having a principal place of business at
	 	 )
	  	 
	 430 North McCarthy Blvd.
	 	 )
	  	 
	 Milpitas, California 95035
	 	 )
	  	 
	  

	 	 )
	  	 

 
Background 
 
FCT and CMD
were negotiating an amendment and restatement to the Original Agreement in order to grant CMD a “have made” right and to add an additional Licensed Site as CMD believed it wanted to make Wafers using the Ultra CSPTM Technology itself in Tempe and for its contract manufacturer to make Wafers using the Ultra CSPTM Technology in Shanghai and as a result was willing to pay FCT an additional fee of $**. However, CMD subsequently
has decided tentatively on an alternative course of action and no longer requires or is willing to pay for this right and an additional Licensed Site. The parties have agreed to finalize the draft amendment and restatement of the Original Agreement
granting this right and an additional Licensed Site in exchange for such payment but have agreed not to enter into such amendment and restatement at present or to have any obligation to do so in the future. 
 
In the process of such negotiations, FCT and CMD recognized
the need to make certain amendments to the Original Agreement at present in order for CMD to be able to pursue its desired course of action and by this First Amendment desire to amend the Original Agreement accordingly. 
 
Therefore, FCT and CMD hereby agree as follows: 
 

 
** CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 

CONFIDENTIAL TREATMENT REQUESTED 
 
 
Agreement 
 
1.    In
Section 1.4 of the Original Agreement, the first sentence shall be replaced to read in full as follows: 
 
“Licensed Site” means CMD’s facility located in Tempe Arizona. 
 
2.    Section 3.2 of the Original Agreement shall be replaced to read in full as follows: 
 
Except as otherwise stated in this section, CMD agrees to limit disclosure of
Confidential Information to those CMD employees or consultants, or those employees or consultants of a third party staffing a facility used by and subject to the direction and control of CMD, having a reasonable need to know such Confidential
Information for CMD to practice the Ultra CSPTM Technology in accordance with the terms of this
Agreement. 
 
3.    In Section 4.1 of the
Original Agreement, a new second sentence shall be inserted, reading as follows: 
 
This license includes the right for CMD to offer a service to third parties to make chip-scale products for them using the Ultra CSPTM Technology (including producing solder balls on Wafers) provided that the volume of third party Wafers does not exceed 10% of the volume of CMD Wafers in any calendar quarter. 
 
4.    In Section 4.2 of the Original Agreement, a new last
sentence shall be added, reading as follows: 
 
When changing the
location of a Licensed Site, it is understood and agreed that there shall be a reasonable time of overlap, not to exceed six months after production begins at the new Licensed Site, when both the old and new sites are concurrently licensed and
operating in order to facilitate an orderly transition without interruption of supply. 
 
5.    In Section 7.1 of the Original Agreement, the following shall be added as a new last sentence to the first paragraph: 
 
The above royalties need only be paid on “good Wafers” meaning Wafers that were used to make products that CMD (or
CMD’s service customers under Section 4.1) actually puts into its inventory to be sold to its customers or otherwise sells or samples to its customers. 
 
6.    In Section 17.2, the following shall be added at the end, just before the period: 
 
; provided that the rights and license granted under this Agreement may be
extended to Affiliates of CMD upon notice to FCT accompanied by the agreement of the Affiliate to be bound by the terms and conditions of this Agreement 
 
7.    This First Amendment constitutes the entire agreement and understanding of CMD and FCT concerning its subject matter,
superseding all prior written and oral agreements and understandings concerning such subject matter. Except as amended as provided in Sections 1-5 above, the Original Agreement remains unchanged and in full force and effect. 
 
** CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 

CONFIDENTIAL TREATMENT REQUESTED 
 
 
Authorized Signatures 
 
To indicate
agreement to the terms and conditions of this First Amendment, the parties have had their designated representatives sign effective as of the date first set forth above. 
 

	 	 	 	 	 FLIP CHIP TECHNOLOGIES, L.L.C.
 (FCT)

	
	 December 8, 2002

	 	 	 	 /s/    SCOTT
BARRETT        

	 Date Executed
	 	 	 	 By:
	 	 Scott Barrett

	 	 	 	 	 	 	 Title:  
	 	 Director, Marketing and Business Development

	
	 	 	 	 	 CALIFORNIA MICRO DEVICES CORPORATION
 (CMD)

	
	 December 13, 2002

	 	 	 	 /s/    ROBERT V.
DICKINSON        

	 Date Executed
	 	 	 	 By:
	 	 Robert V. Dickinson

	 	 	 	 	 	 	 Title:  
	 	 President & CEO

 
** CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

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