Document:

exv10w43

Exhibit 10.43

CONFIDENTIAL TREATMENT REQUESTED – REDACTED COPY

 

*** Confidential Treatment has been requested for portions of this Exhibit. Confidential
portions of this Exhibit are designated by [****]. A complete version of this exhibit has been
filed separately with the Securities and Exchange Commission.

 

TRANSITION SERVICES AGREEMENT

This Transition Services Agreement (this “Agreement”) is made and entered into as of the
Effective Date by and between Trident Microsystems (Far East) Ltd., a Cayman Islands
company (“Trident Cayman”), and NXP B.V., a Dutch besloten vennootschap (“NXP”). Trident
Cayman and NXP are each referred to individually as “Party” and collectively as the “Parties.”

Background

WHEREAS, pursuant to that certain Share Exchange Agreement, dated as of October 4, 2009, by and
among Trident Microsystems, Inc., a Delaware corporation (“Trident”), NXP and Trident Cayman (the
“Share Exchange Agreement”), Trident Cayman has acquired the Acquired Assets from NXP and its
Affiliates (the “Acquisition”).

WHEREAS, in connection with the Acquisition, and subject to the terms and conditions of this
Agreement, Trident Cayman desires to obtain from NXP and NXP’s Affiliates, and NXP is willing to
provide, and cause its Affiliates to provide, certain transitional services and support for Trident
Cayman, Trident and Trident’s Subsidiaries.

WHEREAS, in connection with the Acquisition, and subject to the terms and conditions of this
Agreement, NXP desires to obtain from Trident Cayman and Trident Cayman’s Affiliates, and Trident
Cayman is willing to provide, and cause its Affiliates to provide, certain transitional services
and support for NXP and NXP’s Subsidiaries.

Now, Therefore, in consideration of the mutual covenants herein and for good and valuable
consideration, receipt of which is hereby acknowledged, the Parties agree as follows.

Agreement

	1.	 	Definitions. The following terms, when used in this Agreement with initial capital
letters, have the meanings given to such terms in this Section 1. Capitalized terms
used but not expressly defined in this Agreement have the meanings given such terms in the
Share Exchange Agreement.

 

 

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     1.1 “Books and Records” shall have the meaning set forth in Section 6.7(a).

     1.2 “Confidential Information” shall have the meaning set forth in Section
7.1.

     1.3 “Costs” means the sum of Direct Costs and Indirect Costs.

     1.4 “Direct Costs” means all of the Service Provider’s actual costs of labor
(including, but not limited to, wages, bonuses, equity compensation, fringe benefits and
employer taxes and contributions), and equipment and materials that are specifically
attributable to the Services provided by the Service Provider under this Agreement
(including allowances for the depreciation of equipment and other capital assets used in
the performance of the Services, as reported in the Service Provider’s local records of
account), but does not include travel costs, extraordinary expenses or financing expenses
(which means interest income or expense, but may include, if any, all exchange gains or
losses and other financial costs).

     1.5 “Dispute Notice” shall have the meaning set forth in Section 12.4(b).

     1.6 “Effective Date” means February 8, 2010.

     1.7 “ERP” shall have the meaning set forth in Section 6.8(a)(i).

     1.8 “Facility” shall have the meaning set forth in paragraph 1a of
Schedule 2 hereto.

     1.9 “Financial Reporting Services” shall have the meaning set forth in paragraph
2a of Schedule 3 hereto.

     1.10 “IT/ICT Schedule” means Schedule 4 hereto.

     1.11 “Indirect Costs” means that portion of the Service Provider’s general and
administrative expenses that are specifically allocated to the Services under this
Agreement on a basis consistent with the Service Provider’s current accounting practices as
reflected in Schedule 7 hereto.

     1.12 “JAMS” shall have the meaning set forth in Section 12.4(c).

     1.13 “JAMS Arbitrator” shall have the meaning set forth in Section 12.4(c).

     1.14 “NXP Services” means the following transitional services and support to be
provided to Trident Cayman, Trident and Trident’s Subsidiaries:

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          (a) human resources management (i.e., compensation and benefit plans, payroll
services, training), as more specifically described in Schedule 1 hereto;

          (b) office and infrastructure, as more specifically described in Schedule 2
hereto;

          (c) financial administration, as more specifically described in chedule 3
hereto;

          (d) ICT hardware, ICT software, ICT infrastructure, telecommunications, and general IT
services, as more specifically described in Schedule 4 hereto;

          (e) for the German Transition Period, maintenance, servicing, housing and all other
services related to the operation and maintenance of the German Assets; and

          (f) for the four month period following the Closing, export, customs and licensing, as
more specifically described in Schedule 5 hereto.

     1.15 “NXP Subsidiaries” means NXP’s Subsidiaries. For the avoidance of doubt, NXP
Subsidiaries does not include Trident and Trident’s Subsidiaries.

     1.16 “Permitted Representatives” shall have the meaning set forth in Section
7.1.

     1.17 “Service Manager” shall have the meaning set forth in Section 5.

     1.18 “Service Provider” means the entity providing the relevant Services.

     1.19 “Service Recipient” means the entity receiving the relevant Services.

     1.20 “Services” means the Trident Services or the NXP Services, as applicable.

     1.21 “Service Schedule” means each of the Schedules attached to this Agreement
(including the annexes or any other attachments thereto) that set forth the Services to be
provided by the Service Provider to the Service Recipient and any future schedules setting
forth additional transitional services as agreed upon between the Parties.

     1.22 “Senior Executive” shall have the meaning set forth in Section 5.

     1.23 “Subsequently Identified Additional Service” shall have the meaning set forth in
Section 2.6(a).

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     1.24 “Taxes” shall have the meaning set forth in Section 6.5.

     1.25 “Trident Services” means the transitional services and support to be provided to
NXP and NXP Subsidiaries as set forth on Schedule 6 hereto.

	2.	 	Service Provider’s Obligations

     2.1 Services Generally. Subject to the terms and conditions of this Agreement, during
the applicable term set forth in the applicable Service Schedule, a Service Provider will
provide the Services to the Service Recipient. The Services shall be of a scope and
delivered in a manner substantially consistent with past practice of the Service Provider
on an internal or, where applicable, intra-company basis. Without limitation, the Services
listed on a Service Schedule include the specific activities, tasks, and responsibilities
that have been historically provided by that party internally on a customary and regular
basis and those that are inherent and reasonably necessary as part of, or for the proper
performance of, the Services, even if not specified on a Service Schedule.

     2.2 Service Provider Responsibility. All Services shall be performed, and all
information shall be delivered, in a professional and workmanlike manner and in accordance
with prevailing professional standards, using personnel with appropriate training and
expertise as determined by the Service Provider in good faith and in accordance with any
specifications or requirements of the Service Recipient set forth in the applicable Service
Schedule, but without other warranties as to results, quality or performance, fitness for
purpose, non-existence of errors or the like.

     2.3 Subcontracting. The Service Provider has the right to subcontract the performance
of any portion of the Services to a third party with the prior written consent of the
Service Recipient (not to be unreasonably withheld); provided, that (i) any such
subcontracting shall be on terms that are consistent with, and no less protective than, the
confidentiality terms of this Agreement and are otherwise sufficient to enable Service
Provider to comply with this Agreement, (ii) the Service Provider remains responsible for
the performance of the Services in accordance with this Agreement and monitors and manages
such performance, (iii) the Services provided by third parities shall be performed and
delivered with at least the same standards and level of performance, priority and quality
to which the Service Provider is accountable under the terms of this Agreement, and (iv)
the Service Provider shall make commercially reasonable efforts to cause the third party
service provider to enter into a direct contractual relationship with the Service Recipient
for the provision of the relevant Services, on such terms and conditions as reasonably
agreed upon by the Service Recipient. Notwithstanding the foregoing, the prior written
consent of the Service Recipient shall not be required (A) where the Services to be
performed by the Service Provider are already provided to the Service Provider by a third
party on a subcontracted basis or (B) for new contracts between the Service Provider and a
third party regarding Services currently provided by such third party to the Service
Provider on terms

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substantially the same as those presently in effect or (C) where such subcontract is
in connection with a merger, acquisition or sale of the portion of the Service Provider’s
assets to which the Service relates. The Service Provider will be responsible for the
payment of all subcontractors such Service Provider engages for the performance of
Services.

     2.4 Certain Limitations. Unless expressly provided herein and/or in any Service
Schedule: (i) the NXP Services shall be available only for the purposes of conducting the
Business transferred to Trident and Trident Cayman substantially in the manner it was
conducted immediately prior to the Effective Date, and (ii) the Trident Services shall be
available only to the extent necessary to sustain the businesses and operations of NXP not
included in the Business transferred to Trident and Trident Cayman. Unless expressly
provided herein and/or in any Service Schedule, the Service Provider is not required to
hire any additional employees or maintain the employment of any specific employee, modify
any existing systems, equipment or software or acquire additional systems, equipment or
software so long as the Service Provider meets the requirements of Section 2.1.

     2.5 Compliance with Laws. The Service Provider shall provide the Services in
accordance with all Applicable Laws. The Service Provider shall not be obligated to
provide, or cause to be provided, any Service if the provision of such Service would
require a Party or any of its employees, agents or representatives to violate any
Applicable Law.

     2.6 Additional Services.

          (a) Should a Party, in its reasonable judgment, after the Effective Date, identify a
particular need for a transitional service that should be provided under this Agreement,
then that Party has the right, at any time after the Effective Date until the end of the
day on May 8, 2010, to request that such transitional service be provided under this
Agreement. Following that request, the Service Provider shall negotiate in good faith with
the Service Recipient to prepare and sign an additional Service Schedule covering such
additional transitional service or amend an existing Service Schedule to provide for such
additional transitional service (each, a “Subsequently Identified Additional Service”). In
the event the Parties agree on such Subsequently Identified Additional Service, “Trident
Services” or “NXP Services,” as applicable, and therefore “Services,” shall be deemed to
include such Subsequently Identified Additional Service. A form of services addendum, to
be completed for each country/region where Subsequently Identified Additional Services are
to be performed, is attached hereto as Exhibit A.

          (b) Notwithstanding anything to the contrary in Section 2.6(a), Subsequently
Identified Additional Services shall not include, and the Service Provider shall not be
required to provide, the following services (except as expressly provided in the Share
Exchange Agreement): (i) tax related services; (ii) legal services; (iii) treasury
services; (iv) manufacturing services (which are

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covered by the Manufacturing Services Agreement); or (v) research and development
services (which are covered by the R&D Services Agreement).

     2.7 Treatment of Employees. All employees and representatives of a Service Provider
are considered, for purposes of all compensation and employee benefits matters, to be
employees or representatives of that Service Provider, as applicable, and not employees or
representatives of the Service Recipient.

     2.8 Viruses. Each Party, as Service Provider, shall use commercially reasonable
efforts to prevent the introduction of viruses and other unauthorized software or
mechanisms into the Service Recipient’s software and computer systems.

     2.9 Audit Rights. Each Party shall cooperate with the other in connection with any
financial audits the Service Recipient may conduct, including by providing access, upon
reasonable notice, for the Service Recipient, its auditors, and designees to the Service
Provider’s and its Affiliates’ computer systems and records.

	3.	 	Additional Obligations

     3.1 Service Recipient Policies. Both Parties shall maintain, and shall cause their
personnel to comply with, confidentiality and security policies in accordance with standard
industry practice, including, without limitation, network access and source code handling
policies. While working at a Service Recipient’s site, the Service Provider shall also: (a)
observe and comply with all of the Service Recipient’s security procedures, rules,
regulations, policies, working hours and holiday schedules that are made available or
provided in writing to the Service Provider; (b) use commercially reasonable efforts to
minimize any disruption to the Service Recipient’s business and operations; and (c) keep
Service Recipient’s facilities in good order, not commit or permit waste or damage to those
facilities and not use the facilities for any unlawful purpose or act. .

     3.2 Cooperation. In order to enable the Service Provider to provide the Services, the
Service Recipient will provide the Service Provider with cooperation and assistance as the
Service Provider reasonably requests as required to facilitate provision of the Services.

	4.	 	Non-Exclusive. Subject to Section 11.2(b), nothing in this Agreement will
preclude a Party from obtaining from its own employees or from providers other than the other
Party, in whole or in part, services of any nature.

	5.	 	Coordination and Communication. The Service Recipient and the Service Provider will
each appoint a single service manager who will serve as the primary point of contact for the
other Party for matters related to this Agreement, including handling of requests for changes
in the Services (the “Service Manager”). Each Party shall also appoint one senior executive
to serve as the primary contact for discussing material issues and handling escalations
(“Senior Executive”). A Party

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	 	 	may replace its Service Manager or Senior Executive with an individual of comparable
qualifications and experience by notifying the other of such new appointment. Each Party
will use reasonable efforts to minimize changes to the person who is serving as its Service
Manager or Senior Executive, as applicable.

	6.	 	Compensation

     6.1 Compensation of Service Provider.

          (a) As compensation for each Service provided under the terms of this Agreement, each
Party, as the Service Recipient, shall pay the Service Provider the fee for the Service as
set forth in the applicable Service Schedule.

          (b) To the extent pricing for a Service is not set forth in the applicable Service
Schedule or in Section 6.8, the Parties will in good faith negotiate the price of
each such transitional Service, [****].

     6.2 Invoice. Each Service Provider shall invoice each Service Recipient for the
applicable Services provided or will provide on a monthly basis. By the fifteenth (15th)
day of each month, the Service Provider shall provide the Service Recipient with an invoice
setting forth the estimated Costs that the Service Provider has incurred or will incur for
that month. Any differences between the invoiced estimated Costs and the actual Costs
incurred by the Service Provider in a given month shall be reflected in the invoice of the
following month. The Service Recipient shall be entitled to dispute, in good faith and in
writing, any invoice, including any estimated Costs included in such invoice. Any dispute
shall be resolved pursuant to the provisions of Section 12.4.

     6.3 Payment. The Service Recipient shall pay the fees then payable under this
Section 6 on or prior to [****] following the date of the
receipt of each invoice. Payment shall be made by the Service Recipient in the form of a
bank draft, wire transfer or other form of payment as may be determined by mutual agreement
of the Parties. The Service Recipient shall not have the right to set off any payment made
to the Service Provider by any outstanding balance owed to Service Recipient by Service
Provider or any losses or damages Service Recipient suffers that are attributable to the
provisions of Services by or on behalf of the Service Provider.

     6.4 Currency. Unless otherwise agreed, all prices and fees will be calculated in
local currencies as set forth in the applicable Service Schedule and will be converted on
the date of invoice into United States Dollars for payment based on the exchange rate of
NXP as consistently applied in accordance with NXP’s accounting principles.

     6.5 Taxes. The fees and charges of the Service Provider under this Agreement do not
include any taxes, including, without limitation, any value-added taxes, sales taxes or
withholding taxes (collectively, “Taxes”). The Service

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Provider shall include the amount of any applicable Taxes on the invoices provided to
the Service Recipient pursuant to Section 6.2, and the Service Recipient shall be
responsible for payment of all Taxes that are legally required to be charged or withheld on
fees payable for Services provided under this Agreement, other than Taxes based on the
Service Provider’s net income.

     6.6 Expenses. Except as otherwise expressly provided in this Agreement, each Party
will bear its own costs and expenses incurred in the performance of this Agreement.

     6.7 Examination of Books and Records.

          (a) Each Party, as Service Provider, shall keep complete, true and correct books and
records (including worksheets, invoices or other supporting documents demonstrating the
time and expenses incurred and calculation of all amounts due) in respect of the Services
provided hereunder to substantiate and confirm all expenses and charges (collectively, the
“Books and Records”). During the term of this Agreement, at the Service Recipient’s
reasonable request, but in any event no more than twice in any twelve (12) month period and
solely in order to substantiate and confirm any expenses and charges set forth on any
invoice, the Service Provider shall (x) provide the Service Recipient with copies of the
relevant Books and Records, or (y) after receiving ten (10) Business Days’ advance notice
from the Service Recipient, grant an independent, reputable audit firm appointed by the
Service Recipient reasonable access (during normal business hours) to the relevant Books
and Records; provided, however, that granting access to such Books and
Records shall not unduly interfere with the normal business and operations of the Service
Provider.

          (b) If an audit reveals that the Service Provider overcharged the Service Recipient,
then the Service Provider shall reimburse the overcharged amount, which reimbursement the
Service Provider shall make within thirty (30) days after receipt of the written demand
from the Service Recipient. Additionally, if the Service Recipient was overcharged by
[****], then the Service Provider shall pay the cost of the audit.

          (c) If an audit reveals that the Service Provider undercharged the Service Recipient,
then the Service Recipient shall pay the undercharged amount, which payment the Service
Recipient shall make within thirty (30) days after receipt of the written demand from the
Service Provider.

     6.8 Costs Borne and Discount provided by NXP.

          (a) Notwithstanding anything to the contrary in this Agreement or any Service
Schedule, NXP shall provide the following NXP Services and bear the following Costs of such
NXP Services:

               (i) Enterprise, Resource and Planning (“ERP”):

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                    (1) NXP Service: NXP will create an ERP environment based on SAP®, B2B®
protocol and MarCS® with booking, billing and shipping in respect of sales transactions for
sole use by Trident based on the scope, functionality and milestones as described in the
IT/ICT Schedule.

                    (2) Cost: NXP will bear Costs estimated to be [****].

               (ii) BP&A transition services:

                    (1) NXP Service: NXP will provide BP&A transition services commencing on the
Closing Date and ending at the end of the Finished Goods Period (as defined in the
Manufacturing Service Agreement).

                    (2) Cost: NXP will bear Costs up to a maximum of [****].

          (b) Any Costs in excess of the amounts stated in (i) Section 6.8(a)(i) to the
extent Trident Cayman requests any deviations in the scope, functionality and milestones as
described in the in the IT/ICT Schedule and (ii) Section 6.8(a)(ii), shall be borne by
Trident Cayman as set forth in the other Sections of this Agreement and the IT/ICT
Schedule.

          (c) During the term of this Agreement, NXP shall apply a [****] discount on Costs of
generic IT NXP Services up to a maximum aggregate discount of [****].

          (d) NXP shall report to Trident the Costs incurred to render the NXP Services provided
pursuant to Section 6.8(a) on a monthly basis.

	7.	 	Confidentiality 

     7.1 Confidentiality Information. Each Party shall keep confidential this Agreement
and all proprietary and non-public information regarding the other Party and its Affiliates
received pursuant to this Agreement that is known to be or otherwise would be reasonably
understood as confidential given the nature of the information disclosed and the context of
its disclosure (the “Confidential Information”), and shall not disclose or reveal any such
information to any Person without the prior written consent of the other Party, other than
those of its employees, officers, directors, Affiliates, attorneys, accountants, financial
advisors and contractors or subcontractors providing Services pursuant to Section
2.3 (“Permitted Representatives”) who need to know such information for the purpose of
taking any action required with respect to this Agreement and shall cause those Permitted
Representatives to observe the terms of this Section 7 and agree for the benefit of
the other Party to do so (and any violation or breach of the terms of this Section
7 by any Permitted Representative shall be deemed a breach hereof by the applicable
Party).

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     7.2 No Other Use. Each Party shall not, and shall cause its respective Permitted
Representatives not to, use the other Party’s Confidential Information for any purpose
other than in connection with this Agreement; provided, that nothing herein shall
prevent a Party or any of its Permitted Representatives from disclosing any such
information that:

          (a) is or becomes generally available to the public other than as a result of a
disclosure by such Party or its Permitted Representatives in violation of this Section
7.2 or any other confidentiality agreement between the Parties or any of their
respective Permitted Representatives or any other legal duty, fiduciary duty, or other duty
of trust and confidence of the Parties, any of their Permitted Representatives;

          (b) was within such Party’s or its Permitted Representative’s possession on a
non-confidential basis prior to being furnished with such information (provided that the
source of such information was not known by such Party at the time of such disclosure by
such Party or any of its Permitted Representatives to be bound by a confidentiality
agreement with, or other contractual, legal or fiduciary obligation of confidentiality to
or other duty of trust and confidence to, the other Party with respect to such
information);

          (c) was independently developed by such Party without use of any information furnished
to such Party, any of its Permitted Representatives; or

          (d) becomes available to such Party or its Permitted Representative on a
non-confidential basis from a source other than the other Party; provided that such
source is not known by such Party at the time of such disclosure by such Party or any of
its Permitted Representatives to be bound by a confidentiality agreement with, or other
contractual, legal or fiduciary obligation of confidentiality to or other duty of trust and
confidence to, the other Party with respect to such information.

     7.3 Disclosure Required by Law. If any Confidential Information is required to be
disclosed by a Party in accordance with Applicable Law or judicial order, then such Party
shall notify the other Party in writing and shall cooperate with the other Party if the
other Party elects to seek a protective order or other appropriate remedy with respect to
such required disclosure. If no such protective order is obtained, and if the Party or any
of its Permitted Representatives has been advised by legal counsel in writing that it is
legally compelled to disclose any Confidential Information, then such Party or such
Permitted Representative may disclose such Confidential Information, but shall furnish only
that portion of the Confidential Information which such Party or its Permitted
Representatives is advised by counsel is legally required and shall exercise its reasonable
efforts to obtain reliable assurance that confidential treatment shall be accorded such
Confidential Information.

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     7.4 Return of Confidential Information. Upon the termination of this Agreement, each
Party shall return to the other Party all written Confidential Information that has been
provided to such Party under this Agreement; provided, that in lieu of returning
such Confidential Information to the other Party, each Party may destroy such Confidential
Information and provide the other Party with a written certification that such written
Confidential Information has been destroyed.

     7.5 Access to Computer Systems. If a Party is given access to any equipment,
computer, software, network, electronic files, or electronic data storage system owned or
controlled by the other Party, such accessing Party will limit such access and use solely
to provide or receive Services under this Agreement and shall not access or attempt to
access any equipment, computer, software, network, electronic files, or electronic data
storage system, other than those specifically required to provide or receive the Services.
Each Party will limit its access to those employees with a requirement to have such access
in connection with this Agreement, will advise the other Party in writing of the name of
each person who will be granted access if requested to do so, and will strictly follow all
security rules and procedures for use of electronic resources. All user identification
numbers and passwords disclosed to a Party and any Confidential Information obtained by a
Party as a result of its access to and use of any equipment, computers, software, networks,
clean-rooms electronic files, and electronic data storage systems owned or controlled by
the other Party, is deemed to be, and will be treated as, Confidential Information under
applicable provisions of this Agreement. The Parties agree to cooperate in the
investigation of any apparent unauthorized access to any equipment, computer, software,
network, clean-room, electronic file, or electronic data storage systems owned or
controlled by the other Party, or any apparent unauthorized release of Confidential
Information.

     7.6 Injunctive Relief. Each of the Parties acknowledges and agrees that (a) any breach
of the provisions of this Section 7 by either Party will result in irreparable
injury to the other Party; (b) the remedy at law alone will be an inadequate remedy for
such breach; (c) in addition to any other undertaking, such Party is entitled,
notwithstanding any provision of Section 12 below, to an injunction or injunctions
or other equitable relief from any court of competent jurisdiction to prevent breaches of
this Agreement and to enforce specifically the terms and provisions of this Section
7 in accordance herewith (to the extent permitted by law), this being in addition to
any other remedy to which such Party is entitled at law or in equity; and (d) in the event
that any action, suit or proceeding is brought in equity to enforce the provisions of this
Section 7, no Party shall allege, and each party waives the defense or
counterclaim, that there is an adequate remedy at law.

	8.	 	Limitations of Liability

     8.1 Consequential Damages Waiver. EXCEPT FOR ANY BREACH OF THE CONFIDENTIALITY
OBLIGATIONS UNDER SECTION 7, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY LOSS
OF PROFIT,

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INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR
RELATING TO THIS AGREEMENT.

     8.2 Limitation of Liability. Each Party’s liability under this Agreement (for its own
conduct and the conduct of its Subsidiary(ies) in performing the Services) shall be limited
to such Party’s willful misconduct or gross negligence.

     8.3 Basis of the Bargain. EACH PARTY ACKNOWLEDGES THAT THE MUTUAL LIMITATIONS OF
LIABILITY CONTAINED IN THIS SECTION 8 REFLECT THE ALLOCATION OF RISK SET FORTH IN
THIS AGREEMENT AND THAT NO PARTY WOULD ENTER INTO THIS AGREEMENT WITHOUT THESE LIMITATIONS
ON LIABILITY.

	9.	 	Disclaimer. OTHER THAN AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR A SERVICE
SCHEDULE, THE SERVICES, AND ALL OTHER FACILITIES, EQUIPMENT, SOFTWARE, AND SERVICES PROVIDED
UNDER THIS AGREEMENT ARE PROVIDED “AS IS” AND THE SERVICE PROVIDER MAKES NO OTHER
REPRESENTATIONS OR WARRANTIES UNDER THIS AGREEMENT, AND DISCLAIMS ANY AND ALL OTHER
REPRESENTATIONS OR WARRANTIES, STATUTORY, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION,
ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND
NON-INFRINGEMENT.

	10.	 	No Indemnification. Each Party has no obligation to indemnify the other for claims,
actions, demands, suits, losses, liabilities, judgments, expenses or costs (including
attorneys’ fees) made by third parties arising out of or related to the Services. Each Party
hereby expressly disclaims any such indemnification obligation.

	11.	 	Term and Termination

     11.1 Term of Agreement.

          (a) The term of this Agreement begins on the Effective Date and, unless earlier
terminated as provided herein, will continue until the termination or expiration of each of
the Service-specific terms set forth in the Service Schedules.

          (b) Except as otherwise provided in a Service Schedule, the term for an individual IT
Service shall be three (3) months. For all other Services, and except as otherwise provided
in a Service Schedule, the Service Recipient may select a term for an individual
transitional Service of two (2), six (6), twelve (12), or eighteen (18) months, in
accordance with feasible alternatives for obtaining the transitional Services available to
the Service Recipient.

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          (c) The provision of the Services hereunder may be extended to the extent mutually
agreed in writing between the Parties.

     11.2 Termination.

          (a) Either Party may terminate this Agreement or any one or more of the Service
Schedules immediately, upon written notice, a copy of which shall also be provided to the
other Party’s Senior Executive: (i) if the other Party materially breaches any material
term of this Agreement and fails to cure such breach within forty-five (45) days after
receipt by the breaching Party of written notice from the non-breaching Party describing in
reasonable detail such breach; (ii) upon the institution by or against the other Party of
insolvency, receivership or bankruptcy proceedings or any other proceedings for the
settlement of the other Party’s debts, which case is not dismissed within sixty (60) days
of filing; (iii) upon the other Party’s making an assignment for the benefit of creditors;
or (iv) upon the other Party’s dissolution or ceasing to conduct business in the normal
course, or the other Party’s failure to pay its debts as they mature in the ordinary course
of business.

          (b) Except as set forth on the applicable Service Schedule in regards to a longer or
shorter termination notice period, a Service Recipient may terminate any Service Schedule
without cause upon three (3) months’ prior written notice. Any such termination shall be
effective on the first day after such notice period.

     11.3 Effect of Termination. Upon termination or expiration of this Agreement for any
reason, (a) the Service Provider will cooperate with the Service Recipient in completing
all work in progress and such other matters which may require the Service Provider’s
assistance; (b) within five (5) business days of any termination or expiration of this
Agreement or any Service Schedule, the Service Provider will deliver to the Service
Recipient all deliverables, whether completed or in progress, as well as all materials
which were furnished to the Service Provider by the Service Recipient or which were
prepared or procured by the Service Provider as a part of the Services, and will disclose
to the Service Recipient all of the Service Provider’s work product related to the
provision of the Services; (c) the Service Provider will cooperate with the Service
Recipient in transitioning all work in progress to the Service Recipient or the Service
Recipient’s designee, and will otherwise cooperate with the Service Recipient as reasonably
requested to prevent disruption to the Service Recipient’s business and operations; and (d)
each Party shall return to the other Party or certify in writing to the other Party that it
has destroyed all documents and other tangible items that it or its employees, contractors
and agents have received or created pertaining, referring or relating to the Confidential
Information of the other Party furnished under this Agreement, and erase or destroy all
electronic or magnetic records in computer memory, tape or other media containing any
Confidential Information. Termination of this Agreement shall not limit either Party from
pursuing any other remedies available to it at law or in equity. Neither the Service
Recipient, on the one hand, nor the

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Service Provider, on the other hand, will be liable to the other because of any proper
termination of this Agreement for compensation, reimbursement, or damages for the loss of
prospective profits, anticipated sales or goodwill. The provisions of this Agreement that
by their nature continue and survive will survive any termination or expiration, including,
without limitation, Sections 1, 6, 7, 8, 9,
10, 11.3, 11.4 and 12. In the event of any termination
with respect to one or more, but less than all, of the Service Schedules, this Agreement
will continue in full force and effect with respect to any Service Schedules not so
terminated.

     11.4 Further Assurances. During the term of this Agreement and following the
expiration of the term a Service Schedule or following any termination of this Agreement,
the Service Provider shall cooperate in good faith with the Service Recipient and take all
other actions reasonably requested by the Service Recipient to enable the Service Recipient
to make alternative arrangements for the provision of Services.

	12.	 	General

     12.1 Notices. All notices or other communications hereunder shall be given in
accordance with Section 12.9 of the Share Exchange Agreement.

     12.2 Governing Law. The internal law, without regard for conflicts of laws
principles, of the State of New York shall govern the validity of this Agreement, the
construction of its terms and the interpretation and enforcement of the rights and duties
of the Parties.

     12.3 Assignment. Except as set forth in Section 2.3, neither this Agreement
nor any of the rights, interests or obligations under this Agreement may be assigned or
delegated, in whole or in part, by operation of law or otherwise by any of the Parties
without the prior written consent of the other Party, and any such assignment or delegation
without such prior written consent shall be null and void, except that a Party may assign
or otherwise transfer its rights without the prior consent of the other Party (i) to a
direct or indirect wholly owned Subsidiary, or (ii) in connection with a merger,
acquisition or sale of substantially all of such Party’s assets, or of the portion of such
Party’s assets to which this Agreement relates. Subject to the preceding sentence, this
Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the
Parties and their respective successors and assigns.

     12.4 Dispute Resolution.

          (a) The Parties shall attempt in good faith to resolve promptly any dispute arising
out of or relating to this Agreement.

          (b) In the event a dispute arises between the Parties under this Agreement that cannot
be resolved after good faith negotiation as contemplated by Section 12.4(a) within
ten (10) Business Days of a Party’s request, NXP or Trident Cayman, as applicable, shall
provide a written notice to the other describing, in

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reasonable detail, the substance of such dispute or disagreement (the “Dispute
Notice”). The Senior Executive of each of NXP or Trident Cayman shall meet, confer and
attempt to resolve the dispute or disagreement within a period of thirty (30) days
following delivery of such Dispute Notice. If such Senior Executives are unable to resolve
the dispute or disagreement within such thirty (30) day period, then either Party shall be
entitled to commence dispute resolution pursuant to Section 12.4(c) below.

          (c) Any dispute or disagreement arising under this Agreement that cannot first be
resolved as provided in Section 12.4(b) shall be finally and exclusively settled by
binding arbitration to be held in New York, New York. Either NXP or Trident Cayman shall
make written application to Judicial Arbitration and Mediation Services (“JAMS”), New York,
New York, for the appointment of a single arbitrator (the “JAMS Arbitrator”) to resolve the
dispute by arbitration. The arbitration shall be administered by JAMS pursuant to its
Comprehensive Arbitration Rules and Procedures. At the request of JAMS, the Parties shall
meet with JAMS at its offices within ten (10) Business Days of such request to discuss the
dispute and the qualifications and experience which each Party respectively believes the
JAMS Arbitrator should have. The Parties shall cooperate with each other and JAMS to
select a JAMS Arbitrator within thirty (30) days of the written application to JAMS. The
arbitrator shall have the authority to grant any equitable and legal remedies that would be
available in any judicial proceeding instituted under New York law to resolve the dispute.
Judgment upon the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof. The losing party shall bear the cost of the arbitration, including
the arbitrator’s fee. The Parties hereto expressly waive all rights whatsoever to file an
appeal against or otherwise to challenge any award by the arbitrator hereunder, except that
the foregoing does not limit the rights of either Party to bring a proceeding in any
applicable jurisdiction to conform, enforce or enter judgment upon such award (and the
rights of the other Party, if such proceeding is brought, to contest such confirmation,
enforcement or entry of judgment).

          (d) Nothing in this Section 12.4 shall preclude either Party from seeking
injunctive relief or any other equitable remedy in any applicable jurisdiction sought to
protect such party’s name, technology, Confidential Information or Intellectual Property.

     12.5 Entire Agreement. This Agreement and the schedules and exhibits hereto
constitute the entire understanding and agreement of the Parties with respect to the
subject matter hereof and supersede all prior and contemporaneous agreements or
understandings, inducements or conditions, express or implied, written or oral, between the
Parties with respect hereto. The express terms hereof control and supersede any course of
performance or usage of the trade inconsistent with any of the terms hereof.

     12.6 Amendments and Waivers. Any term or provision of this Agreement may be amended,
and the observance of any term of this Agreement

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may be waived (either generally or in a particular instance and either retroactively
or prospectively), only by a writing signed by the Party to be bound thereby. The waiver
by a Party of any breach hereof or default in the performance hereof shall not be deemed to
constitute a waiver of any other default or any succeeding breach or default. The failure
of any Party to enforce any of the provisions hereof shall not be construed to be a waiver
of the right of such Party thereafter to enforce such provisions.

     12.7 Severability. If any provision of this Agreement, or the application thereof,
shall for any reason and to any extent be invalid or unenforceable, then the remainder of
this Agreement and the application of such provision to other persons or circumstances
shall be interpreted so as reasonably to effect the intent of the Parties. The Parties
further agree to replace such void or unenforceable provision of this Agreement with a
valid and enforceable provision that shall achieve, to the extent possible, the economic,
business and other purposes of the void or unenforceable provision.

     12.8 Interpretation; Rules of Construction. When a reference is made in this
Agreement to Exhibits, such reference shall be to an Exhibit to this Agreement unless
otherwise indicated. When a reference is made in this Agreement to Schedules, such
reference shall be to a Schedule to this Agreement unless otherwise indicated. When a
reference is made in this Agreement to Sections, such reference shall be to a Section of
this Agreement unless otherwise indicated. The words “include”, “include” and “including”
when used herein shall be deemed in each case to be followed by the words “without
limitation.” The term “$” means United States Dollars. The headings contained in this
Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Reference to the subsidiaries of an entity shall be
deemed to include all direct and indirect subsidiaries of such entity. The Parties agree
that they have been represented by legal counsel during the negotiation and execution of
this Agreement and, therefore, waive the application of any law, regulation, holding or
rule of construction providing that ambiguities in an agreement or other document shall be
construed against the Party drafting such agreement or document. In the event of a
conflict between this Agreement and the Share Exchange Agreement, the Share Exchange
Agreement shall govern unless the context otherwise requires.

     12.9 Third Party Beneficiary Rights. No provisions of this Agreement are intended,
nor shall be interpreted, to provide or create any third party beneficiary rights or any
other rights of any kind in any client, customer, employee, affiliate, stockholder, partner
of any Party or any other Person unless specifically provided otherwise herein and, except
as so provided, all provisions hereof shall be personal solely between the Parties to this
Agreement.

     12.10 No Joint Venture. Nothing contained in this Agreement shall be deemed or
construed as creating a joint venture or partnership between the Parties. Neither Party is
by virtue of this Agreement authorized as an agent, employee, or

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legal representative of the other Party. Neither Party shall have the power to
control the activities and operations of the other Party and their status is, and at all
times shall continue to be, that of independent contractors with respect to each other.
Neither Party shall have any power or authority to bind or commit the other Party. Neither
Party shall hold itself out as having any authority or relationship in contravention of
this Section 12.10.

     12.11 Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original as regards any Party whose signature appears thereon and
all of which together shall constitute one and the same instrument. This Agreement shall
become binding when one or more counterparts hereof, individually or taken together, shall
bear the signatures of all Parties reflected hereon as signatories.

     12.12 Attorneys Fees. The prevailing party is entitled to recover from the losing
party the prevailing party’s attorneys’ fees and costs incurred in any arbitration or other
action with respect to any claim arising out or relating to this Agreement.

     12.13 Execution. This Agreement may be executed by facsimile signatures and such
signature will be deemed binding for all purposes of this Agreement, without delivery of an
original signature being thereafter required.

[Signature Page follows]

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The Parties have executed this Agreement as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	Trident Microsystems (Far East) Ltd.	 	 	 	NXP B.V.	 	 

	 
	By: 

	/s/
Pete J.
Mangan	 	 	 	By: 	/s/
Guido Diereck	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	Name:	  Pete J. Mangan	 	 	 	 	Name:	 Guido Diereck	 	 
	 	 

	 	 	 	 	 	 	 	 	 	 
	 

	Title:	President	 	 	 	 	Title:	Authorized Signatoryexv10w44

Exhibit 10.44

CONFIDENTIAL TREATMENT REQUESTED-REDACTED COPY

 

*** Confidential Treatment has been requested for portions of this Exhibit. Confidential
portions of this Exhibit are designated by [****]. A complete version of this exhibit has been
filed separately with the Securities and Exchange Commission.

 

MANUFACTURING SERVICES AGREEMENT

between

TRIDENT MICROSYSTEMS (FAR EAST) LTD.

and

NXP SEMICONDUCTORS NETHERLANDS B.V.

DATED

February 8, 2010

 

 

 

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Table of Contents

	 	 	 	 	 	 	 
	 

	 	ARTICLE 1	 	 	 	 
	 

	 	Definitions 1	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 2	 	 	 	 
	 

	 	Services 4	 	 	 	 
	 
	 	 	 	 	 	 
	2.1

	 	Finished Goods Period
	 	 	4	 
	2.2

	 	Post-Finished Goods Period Services
	 	 	4	 
	2.3

	 	Quality of Performance by Third Party Providers
	 	 	5	 
	2.4

	 	Returns
	 	 	5	 
	2.5

	 	Purchase of Inventory
	 	 	5	 
	2.6

	 	Quarterly Review of Services
	 	 	5	 
	2.7

	 	Additional Services
	 	 	6	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 3	 	 	 	 
	 

	 	Pricing, Payment and Taxes 6	 	 	 	 
	 
	 	 	 	 	 	 
	3.1

	 	General Pricing Terms
	 	 	6	 
	3.2

	 	Finished Goods Period Pricing
	 	 	6	 
	3.3

	 	Post-Finished Goods Period Pricing
	 	 	7	 
	3.4

	 	Payment
	 	 	8	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 4	 	 	 	 
	 

	 	Planning and Capacity Reservation 8	 	 	 	 
	 
	 	 	 	 	 	 
	4.1

	 	General
	 	 	8	 
	4.2

	 	Long Term Plan
	 	 	8	 
	4.3

	 	Short-Term Plan
	 	 	8	 
	4.4

	 	NXP Group Capacity Commitment for Pending Orders
	 	 	9	 
	4.5

	 	NXP Group Capacity Commitment
	 	 	9	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 5	 	 	 	 
	 

	 	Minimum Volume Commitment and Capacity
Reservation 10	 	 	 	 
	 
	 	 	 	 	 	 
	5.1

	 	Trident Minimum Volume Commitment
	 	 	10	 
	5.2

	 	Audit Rights
	 	 	10	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 6	 	 	 	 
	 

	 	Purchase Orders, Order Placement,
Management and Batch Releases 10	 	 	 	 
	 
	 	 	 	 	 	 
	6.1

	 	Finished Goods Period Ordering
	 	 	10	 
	6.2

	 	Finished Goods Period Wafer Production and Purchase Orders
	 	 	11	 
	6.3

	 	Post-Finished Goods Period Ordering
	 	 	11	 
	6.4

	 	Lead Times; Issue of Purchase Orders
	 	 	11	 
	6.5

	 	Binding Purchase Order
	 	 	11	 
	6.6

	 	Adjustment of Purchase Order
	 	 	11	 

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	6.7

	 	Non-Compliance of Purchase Order
	 	 	12	 
	6.8

	 	Cancellation of Purchase Orders
	 	 	12	 
	6.9

	 	Production Hold
	 	 	13	 
	6.10

	 	Wafer Bank Storage
	 	 	13	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 7	 	 	 	 
	 

	 	Consignment of Wafers, Risk of Loss,
Packing and Date of Shipment 13	 	 	 	 
	 
	 	 	 	 	 	 
	7.1

	 	Consignment of Wafers
	 	 	13	 
	7.2

	 	Risk of Loss
	 	 	13	 
	7.3

	 	Packing
	 	 	13	 
	7.4

	 	Timely Delivery Performance
	 	 	14	 
	7.5

	 	Date of Shipment
	 	 	14	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 8

Product Qualification and Changes 14	 	 	 	 
	 
	 	 	 	 	 	 
	8.1

	 	Product Qualification
	 	 	14	 
	8.2

	 	Quality Standards
	 	 	14	 
	8.3

	 	Changes to Products Initiated by NXP
	 	 	15	 
	8.4

	 	Changes to Products Initiated by Trident
	 	 	15	 
	8.5

	 	Discontinuance
	 	 	15	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 9

Warranties 15	 	 	 	 
	 
	 	 	 	 	 	 
	9.1

	 	Services Warranty
	 	 	15	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 10

Limitation of Liability 16 	 	 	 	 
	 
	 	 	 	 	 	 
	10.1

	 	Direct Damages
	 	 	16	 
	10.2

	 	Cap on Direct Damages
	 	 	16	 
	10.3

	 	Indirect Damages
	 	 	16	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 11	 	 	 	 
	 

	 	Confidentiality 16	 	 	 	 
	 
	 	 	 	 	 	 
	11.1

	 	Confidential Information
	 	 	16	 
	11.2

	 	No Other Use
	 	 	16	 
	11.3

	 	Disclosure Required by Law
	 	 	17	 
	11.4

	 	Return of Confidential Information
	 	 	17	 

 

 

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	 	ARTICLE 12	 	 	 	 
	 

	 	Licensing Arrangements 18	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 13	 	 	 	 
	 

	 	Intellectual Property Indemnification 18	 	 	 	 
	13.1

	 	Infringement by Trident Group
	 	 	18	 
	13.2

	 	Infringement by NXP Group
	 	 	18	 
	13.3

	 	Separate Obligations
	 	 	19	 
	13.4

	 	Indemnification Procedures
	 	 	19	 
	 

	 	ARTICLE 14	 	 	 	 
	 

	 	Transfer of Manufacturing Processes 19	 	 	 	 
	 
	 	 	 	 	 	 
	14.1

	 	Transfers Initiated by NXP
	 	 	19	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 15	 	 	 	 
	 

	 	Term; Termination 20	 	 	 	 
	15.1

	 	Term of the Agreement
	 	 	20	 
	15.2

	 	Extension of the Term
	 	 	20	 
	15.3

	 	Termination
	 	 	20	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 16	 	 	 	 
	 

	 	Miscellaneous 20	 	 	 	 
	 
	 	 	 	 	 	 
	16.1

	 	Force Majeure
	 	 	20	 
	16.2

	 	Export Control
	 	 	20	 
	16.3

	 	Assignment
	 	 	20	 
	16.4

	 	Interpretations; Rules of Construction
	 	 	21	 
	16.5

	 	Survival
	 	 	21	 
	16.6

	 	Entire Agreement
	 	 	21	 
	16.7

	 	Amendments and Waivers
	 	 	21	 
	16.8

	 	Third Party Rights
	 	 	22	 
	16.9

	 	Severability
	 	 	22	 
	16.10

	 	Notices
	 	 	22	 
	16.11

	 	Dispute Resolution
	 	 	22	 
	16.12

	 	Governing Law
	 	 	23	 
	16.13

	 	Attorneys Fees
	 	 	23	 
	16.14

	 	Counterparts
	 	 	23	 

Annex A: Manufacturing Processes

Annex B: NXP Calendar

Annex C: Purchase and Supply Chain Services

Annex D: Service Tariffs

Annex E: Product Data and Yields

Annex F: Product Prices

Annex G: Product Flows

 

 

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Annex H: First Confirmed STP

Annex I: Total Relevant Demand Percentage

Annex J: Product Qualification

Annex K: Buy Back Agreement

Annex L: Lead Time Exceptions

 

 

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Manufacturing Services Agreement

          This Manufacturing Services Agreement (this “Agreement”) is made and entered into as of
February 8, 2010 by and between Trident Microsystems (Far East) Ltd. (“Trident”), a Cayman Islands
company, and NXP Semiconductors Netherlands B.V., a private company with limited liability
incorporated under the laws of The Netherlands, (“NXP Semiconductors”). Trident and NXP
Semiconductors are collectively referred to herein as the “Parties”, or individually as a “Party”,
as the case may be.

          WHEREAS, NXP B.V., a private company with limited liability incorporated under the laws of The
Netherlands (“NXP B.V.”), Trident and Trident Microsystems, Inc., a Delaware corporation, have
entered into that certain Share Exchange Agreement (the “SEA”), dated as of October 4, 2009; and

          WHEREAS, in connection with and as a condition precedent to the closing of the transactions
contemplated by the SEA, NXP B.V. has agreed to provide, and Trident desires to contract for, the
manufacturing and related services described herein.

          NOW, THEREFORE, in consideration of the foregoing and the mutual promises, covenants and
conditions contained herein, the Parties hereby agree as follows.

ARTICLE 1

Definitions

          As used in this Agreement, the following terms have the meanings set forth below. Capitalized
terms used but not defined herein shall have the meanings ascribed to them in the SEA.

          “Adjusted Binding Purchase Order” shall have the meaning set forth in Section 6.6(a).

          “Agreement” shall have the meaning set forth in the Preamble.

          “Back End Services” shall mean any operation performed on a Wafer after it has left the wafer
manufacturing site, including, but not limited to, wafer testing, grinding, sawing, assembly, final
test, marking and packing, as further described in Annex A.

          “Binding Purchase Order” shall have the meaning set forth in Section 6.5(a).

          “Confidential Information” shall have the meaning set forth in Section 11.1.

          “Confirmed Line Item Performance” shall have the meaning set forth in Section 7.4(a)(i).

          “Confirmed STP” shall have the meaning set forth in Section 4.3(d).

          “Dispute Notice” shall have the meaning set forth in Section 16.11(b).

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          “Dual Sourced Products” shall have the meaning set forth in Section 3.2(c)(ii).

          “Finished Goods Period” shall have the meaning set forth in Section 2.1(a).

          “Force Majeure” shall mean an action or event beyond the reasonable control of a Party, as a
result of which it cannot fulfill or cannot reasonably be required to fulfill its obligations
hereunder. Such circumstances include but are not limited to war, strikes, insurrection, terrorism,
fire and explosion, natural disasters, lock-outs, epidemics, industrial espionage or governmental
law or regulations.

          “Front End Services” shall mean the manufacturing of Wafers up to and including the process
control module electrical test and any other services performed on a Wafer before it leaves the
wafer manufacturing facility, as further described in Annex A, but excluding Back End Services
(even if performed in a Front End Services manufacturing facility).

          “Hold” shall have the meaning set forth in Section 6.9(a).

          “JAMS” shall have the meaning set forth in Section 16.11(c).

          “JAMS Arbitrator” shall have the meaning set forth in Section 16.11(c).

          “LTP” shall have the meaning set forth in Section 4.2(a).

          “Manufacturing Processes” shall mean the manufacturing processes relevant for the supply of
Products and provision of Manufacturing Services to Trident Group pursuant to this Agreement, as
described in Annex A.

          “Manufacturing Services” shall mean, collectively, Front End Services and Back End Services.

          “Minimum Volume Commitment” shall have the meaning set forth in Section 5.1(a).

          “NXP B.V.” shall have the meaning set forth in the Recitals of this Agreement.

          “NXP Calendar” shall mean the calendar set forth in Annex B.

          “NXP Group” shall mean NXP Semiconductors and its Affiliates.

          “NXP Plant” shall mean any majority owned or controlled NXP Group facility which shall be used
for the manufacturing of Products and the providing of Manufacturing Services pursuant to this
Agreement.

          “NXP Semiconductors” shall have the meaning set forth in the Preamble of this Agreement.

          “Party” or “Parties” shall have the meaning set forth in the Preamble of this Agreement.

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          “Permitted Representatives” shall have the meaning set forth in Section 11.1.

          “Post-Finished Goods Period” shall have the meaning set forth in Section 2.2.

          “Price Factors” shall have the meaning set forth in Section 3.2(a)(i).

          “Products” shall mean the end products resulting from the Back End Services to be supplied by
NXP Group to Trident Group pursuant to this Agreement.

          “Purchase Order” shall mean any purchase order issued by Trident Group to NXP Group in
accordance with Section 6.1.

          “Purchasing and Supply Chain Services” shall mean the services to be provided by NXP Group to
Trident Group as described in Annex C.

          “Remaining Inventory” shall have the meaning set forth in Section 2.5(a).

          “Remaining Inventory Price” shall have the meaning set forth in Section 2.5(b).

          “Requested Line Item Performance” shall have the meaning set forth in Section 7.4(a)(ii).

          “SEA” shall have the meaning set forth in the Recitals of this Agreement.

          “Service Tariff” shall have the meaning set forth in Section 3.1(a).

          “Service Type” shall have the meaning set forth in Section 5.1(c).

          “STP” shall have the meaning set forth in Section 4.3(a).

          “Term” shall have the meaning set forth in Section 15.1.

          “Third Party Plant” shall mean any facility majority owned or controlled by a Third Party
Provider which shall be used for the manufacturing of Products and the providing of Manufacturing
Services pursuant to this Agreement.

          “Third Party Provider” shall mean any current or future third party provider of Front End
Services or Back End Services. For the avoidance of doubt, NXP Group is not a Third Party
Provider.

          “Total Relevant Demand Percentage” shall have the meaning set forth in Section 5.1(b).

          “Trident” shall have the meaning set forth in the Preamble of this Agreement.

          “Trident Group” shall mean Trident and its Affiliates.

          “VC Products” shall have the meaning set forth in Section 3.2(a)(i).

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          “Wafer” shall mean the basic unit of production in semiconductor fabrication that is comprised
of a thin circular wafer of silicon upon which the transistor and other circuit elements that
comprise an integrated circuit are formed.

          “Wafer Bank” shall mean a wafer bank maintained by NXP Group at one or more NXP Plants for the
storage of partly manufactured (but not yet completed, pre-tested, assembled and final-tested)
ROM-coded Products.

          “Warranty” shall have the meaning set forth in Section 9.1(a).

          “Warranty Period” shall have the meaning set forth in Section 9.1(a).

ARTICLE 2

Services

          2.1 Finished Goods Period.

          (a) During the period commencing on the Closing Date and ending on the earlier of (i)
June 30, 2011 and (ii) the readiness of Trident’s enterprise resource planning system (the
“Finished Goods Period”), NXP Group shall provide Trident Group with Products produced using
the following:

	 	(i)	 	Front End Services by NXP Plants;
	 
	 	(ii)	 	Back End Services by NXP Plants; and
	 
	 	(iii)	 	Purchasing and Supply Chain Services

          (b) Prior to the end of the Finished Goods Period, upon Trident’s reasonable request
and subject to mutual agreement between NXP Semiconductors and Trident, NXP Group shall
render to Trident Group the Manufacturing Services set forth in Section 2.2 with respect to
specified agreed-upon Products; provided that prior to the commencement of such
Manufacturing Services, Trident Group shall purchase from NXP Group the Remaining Inventory
related to such Products in the manner set forth in Section 2.5.

          2.2 Post-Finished Goods Period Services. From the day following the last day of the
Finished Goods Period until the end of the Term (the “Post-Finished Goods Period”), NXP Group shall
render to Trident Group, in respect of the Business, any combination of the following Manufacturing
Services:

          (a) Front End Services by NXP Plants;

          (b) Back End Services by NXP Plants solely with respect to consigned Wafers owned by
Trident Group; and

          (c) Subject to mutual written agreement, Manufacturing Services for mutually agreed
legacy exceptions (i.e., Products provided during the Finished Goods

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Period which the parties agree will continue to be provided during the Post-Finished
Goods Period).

          2.3 Quality of Performance by Third Party Providers. [****]

          2.4 Returns. From and after the Closing Date, Trident Group shall be responsible for
interfacing with customers of the Business with regards to all returns of Products purchased (i)
prior to the Closing Date; provided, however, that all Liabilities incurred with respect to
Products sold prior to the Closing Date shall be governed by the provisions of the SEA, and (ii)
after the Closing Date. NXP Group shall provide support to Trident Group in accordance with NXP
Group’s normal return policies and procedures, including quality levels previously committed by NXP
Group to its customers prior to the Closing Date, and shall make available tools and manpower to
analyze such returns and quality improvement efforts consistent with common industry practices
applied by third party foundries and subcontractors.

          2.5 Purchase of Inventory.

          (a) On the last day of the Finished Goods Period, Trident Group shall purchase from NXP
Group the following (collectively, the “Remaining Inventory”):

               (i) All Products and Wafers in NXP Group’s possession or acquired by NXP Group in the
course of executing Purchasing and Supply Chain Services for Trident Group;

               (ii) All Wafers produced for the Business that have left the front end NXP Plant,`

               (iii) All work in progress Related to the Business; and

               (iv) All Open Outgoing POs with Third Party Providers.

          (b) [****]

          (c) Payment by Trident of the Remaining Inventory Price shall be effectuated first, by
offsetting the amount owed by NXP B.V. under the WIP Note by a corresponding amount and
second, upon the exhaustion of the amount owed by NXP B.V. under the WIP Note, by cash
payment made by Trident to NXP Semiconductors within ten (10) Business Days after the end of
the Finished Goods Period.

          (d) To the extent the amount owed by NXP B.V. under the WIP Note has not been exhausted
by offsets made pursuant to Section 2.5(c), NXP Semiconductors shall make a compensating
cash payment to Trident within ten (10) Business Days after the end of the Finished Goods
Period.

          2.6 Quarterly Review of Services. Trident shall conduct quarterly operations reviews
to assess performance of services provided pursuant to this Agreement. NXP Semiconductors shall
participate in these reviews and provide any information required by

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Trident to support such reviews and shall promptly implement any commercially reasonable
corrective action plans arising as a result of such reviews.

          2.7 Additional Services. [****]

ARTICLE 3

Pricing, Payment and Taxes

          3.1 General Pricing Terms.

          (a) The quarterly tariffs (“Service Tariff”) for Front End Services and Back End
Services are set forth in Annex D hereto. Except for any Third Party Provider prices
included in such Service Tariffs, the Service Tariffs are fixed for the duration of this
Agreement, unless otherwise agreed by the Parties in writing; it being understood that the
prices of Third Party Providers included in the Service Tariffs are current estimates as of
the date of this Agreement and will be subject to changes to reflect actual prices charged
by such Third Party Providers.

          (b) All pricing and Service Tariffs shall be in U.S. dollars unless otherwise agreed.

          (c) Pricing and price quotes shall not include costs of value-added taxes, withholding
taxes and duties.

          (d) [****] At Trident’s reasonable request and expense, NXP Group shall (i) arrange to
transport Products to Hong Kong, P.R.C. and/or (ii) provide
warehousing services for Trident Group in Hong Kong, P.R.C., with respect to the
Products.

          (e) [****] The Parties shall agree on a change management process with respect to test
programs.

          3.2 Finished Goods Period Pricing.

          (a) General.

               (i) Prices for existing or new Products that are or will be subject to the Minimum
Volume Commitment (“VC Products”) shall be determined and revised by [****] (collectively,
the “Price Factors”).

               (ii) [****]

               (iii) [****]

               (iv) For large volume orders of Products that are not reflected in the current
Confirmed STP, the Parties shall use good faith efforts to determine an appropriate price
taking into account the then-current pricing and shall adjust such pricing accordingly to
reflect the size of the transaction.

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          (b) Prices for VC Products as of the Closing Date. The prices for VC Products
as of the Closing Date are set forth in Annex F.

          (c) Quarterly Prices for VC Products

               (i) During the Finished Goods Period, the Parties shall, on a quarterly basis, review
the pricing for VC Products and make applicable adjustments, to be effective the subsequent
quarter, reflecting the anticipated changes in the Price Factors relating to such VC
Products.

               (ii) [****]

          (d) Quarterly Reconciliation

               (i) [****]

               (ii) [****]

               (iii) [****]

          (e) Prices for Non-VC Products. The pricing for Products that that are not
subject to the Minimum Volume Commitment shall be mutually agreed upon by the Parties from
time to time, and shall be subject to quarterly review.

          3.3 Post-Finished Goods Period Pricing.

          (a) The Parties shall determine the pricing for each Manufacturing Service that is
subject to the Minimum Volume Commitment based on the applicable Service Tariff.

          (b) During the Post-Finished Goods Period, the Parties shall, on a quarterly basis,
review the pricing for Manufacturing Services that are subject to the Minimum Volume
Commitment, and make applicable adjustments, to be effective the subsequent quarter,
reflecting changes in yields and test times.

          (c) The pricing for Manufacturing Services that that are not subject to the Minimum
Volume Commitment shall be mutually agreed upon by the Parties from time to time, and shall
be subject to quarterly review.

          (d) For large volume orders of Manufacturing Services that are not reflected in the
current STP, the Parties shall use good faith efforts to determine an appropriate price
taking into account the then-current pricing and shall adjust such pricing accordingly to
reflect the size of the transaction.

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          3.4 Payment.

          (a) NXP Group shall invoice Products and Manufacturing Services on a monthly basis. On
the 15th calendar day of each month, NXP Group shall invoice the costs for Products
delivered and Manufacturing Services provided for that month.

          (b) Payment by Trident Group for Products provided by NXP Group during the Finished
Goods Period shall be effectuated by cash payment within [****]  of the date of
invoice.

ARTICLE 4

Planning and Capacity Reservation

          4.1 General.

          (a) The provisions of this Article 4 shall apply to the entire Term, unless otherwise
provided.

          (b) Trident Group shall regularly provide NXP Group with appropriate visibility on
Trident Group’s anticipated Product and Manufacturing Services needs during the Term.

          (c) Any LTP or STP provided by Trident Group, and any confirmation thereof by NXP
Group, supersedes and replaces any previously provided LTP or STP or confirmation thereof.

          4.2 Long Term Plan.

          (a) In the first quarter of each calendar year, Trident shall provide to NXP
Semiconductors a non-binding long term plan (“LTP”), which shall describe Trident Group’s
anticipated Product and/or Manufacturing Services needs in a reasonably equal spread of
volumes, for the remainder of the Term.

          (b) In the second quarter of each calendar year, NXP Group shall provide a non-binding
confirmation to Trident Group if, according to NXP Group’s reasonably best estimate at such
time, NXP Group would be able to deliver the requested Products and/or Manufacturing
Services.

          4.3 Short-Term Plan.

          (a) No later than the end of the first full week of each calendar month of the NXP
Calendar, Trident shall provide to NXP Semiconductors its non-binding short-term plan
(“STP”) for the following 12 (twelve) months; provided that any STP provided by Trident
during the third quarter of a calendar year shall include Trident’s non-binding short-term
plan for the full subsequent calendar year.

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          (b) The STP shall describe Trident Group’s anticipated Product and/or Manufacturing
Services demand with a monthly breakdown per Manufacturing Process and fab mix, taking into
account an equal spread of volumes over the applicable weeks.

          (c) Within three (3) Business Days after the receipt of an STP, NXP Semiconductors
shall provide to Trident an initial indication with respect to availability of capacity.

          (d) Within ten (10) Business Days after the receipt of an STP, NXP Semiconductors shall
provide a final confirmation, subject to the provisions of Section 4.5 below, upon which the
STP shall then be a “Confirmed STP”. The first Confirmed STP that shall apply at the
Closing Date is set forth in Annex H.

          (e) NXP Group shall use commercially reasonable efforts to procure necessary long lead
time raw materials and components based on any Confirmed STP; provided, however, that
Trident Group shall assume all Liabilities for any such long lead time raw materials and
components that are not used as more particularly described in the Buy Back Agreement
attached hereto as Annex K.

          4.4 NXP Group Capacity Commitment for Pending Orders. For orders in process as of the
Closing Date, NXP Group shall make capacity available consistent with the demand required by the
Business in the ordinary course of the Business as operated in the pre-Closing period (i.e.,
supplies that were secured pre-Closing, shall be secured post-Closing).

          4.5 NXP Group Capacity Commitment.

          (a) [****]

          (b) If NXP Group, after compliance with Section 4.5(a), cannot provide sufficient
capacity to satisfy Trident’s demand for Products or Manufacturing Services, Trident shall
be free to source the Products or Manufacturing Services from Third Party Providers and NXP
Group shall provide reasonable support to Trident Group in such sourcing efforts. The
volume of any such third-party outsourced Products or Manufacturing Services, shall count
towards any Minimum Volume Commitment of Trident Group.

          (c) Until the date that is nine (9) months after the Closing Date, NXP Group shall not
be permitted to claim insufficient capacity pursuant to Section 4.5(a) if NXP Group would
have had sufficient capacity but for the fact that NXP Group had not made investments in
fixed manufacturing or testing assets for rendering of Products and Manufacturing Services
that were planned to be made at the Closing Date.

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ARTICLE 5

Minimum Volume Commitment and Capacity Reservation

          5.1 Trident Minimum Volume Commitment.

          (a) Trident Group shall source the following volumes of NXP Group Products and
Manufacturing Services, in each case as related to the products included in the current
roadmaps of the Business (the “Minimum Volume Commitment”):

               (i) [****]

               (ii) [****]

               (iii) [****]

          (b) “Total Relevant Demand Percentage” for a Service Type shall mean the percentage of
total needs for such Service Type sourced by the Business in 2009 from NXP Plants, as set
forth on Annex I.

          (c) “Service Type” shall mean:

               (i) Front End Services relating to non-advanced CMOS Wafers (larger than .12 microns);

               (ii) Back End Services relating to assembly services; and

               (iii) Back End Services relating to testing services (Wafer testing and final testing
taken together).

          5.2 Audit Rights.

          (a) No more than once per calendar year, Trident shall have the right to have external
independent auditors, selected by Trident and reasonably acceptable to NXP Semiconductors,
perform an audit with respect to NXP Group’s compliance with Section 5.1 above.

          (b) No more than once per calendar year, NXP Semiconductors shall have the right have
external independent auditors, selected by NXP Semiconductors and reasonably acceptable to
Trident, perform an audit with respect to Trident Group’s compliance with Section 5.1 above.

ARTICLE 6

Purchase Orders, Order Placement, Management and Batch Releases

          6.1 Finished Goods Period Ordering. During the Finished Goods Period, Trident Group
shall issue purchase orders (“Purchase Orders”) for Products, and NXP Group shall invoice Trident
Group for Products delivered pursuant to such Purchase Orders.

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          6.2 Finished Goods Period Wafer Production and Purchase Orders. During the Finished
Goods Period, Trident shall be required to approve any Wafer starts in NXP Plants as well as
purchase orders by NXP Group with Third Party Providers necessary for NXP Group to comply with a
Confirmed STP. Any such approved Wafers and purchase orders shall be for the economic benefit and
risk of Trident and shall be used by NXP Group in the provision of Back End Services for Products
of Trident ordered in the Finished Goods Period.

          6.3 Post-Finished Goods Period Ordering. During the Post-Finished Goods Period,
Trident Group shall issue Purchase Orders for Front End Services and Back End Services, and NXP
Group shall invoice Trident Group for Front End Services and Back End Services provided pursuant to
such Purchase Orders.

          6.4 Lead Times; Issue of Purchase Orders.

          (a) [****]

          (b) Any Purchase Orders by Trident Group to NXP Group shall reflect the Products or
Manufacturing Services, as applicable, in quantities consistent with the
applicable Confirmed STP. NXP Group shall confirm Purchase Orders as executable on
specified call-off dates within forty-eight (48) hours.

          (c) All Purchase Orders (including confirmations and changes relating thereto) issued
by Trident Group to NXP Group shall be forwarded by electronic means.

          6.5 Binding Purchase Order.

          (a) A Purchase Order shall be confirmed by NXP Group (a “Binding Purchase Order”) if:

               (i) the Purchase Order is in line with the applicable Confirmed STP; or

               (ii) the Purchase Order is not in line with the applicable Confirmed STP, but NXP Group
shall use commercially reasonable efforts to confirm to Trident Group within two (2)
Business Days, and in no event later than ten (10) Business Days, after receipt of the
Purchase Order that it accepts such Purchase Order.

          (b) For the avoidance of doubt, all Purchase Orders confirmed by NXP which have been
issued by Trident Group to NXP Group prior to the Closing Date shall remain binding between
the Parties and unaffected by this Agreement.

          6.6 Adjustment of Purchase Order.

          (a) Trident Group may at any time, by written notice to NXP Group, make adjustments to
the following provisions of any Binding Purchase Order, which after acceptance and
confirmation by NXP Group, shall become an “Adjusted Binding Purchase Order”:

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               (i) The quantity of Products or Manufacturing Services, provided that the volume
remains in accordance with the Confirmed STP and requested delivery schedule;

               (ii) The method of shipping or packing;

               (iii) The place of delivery, inspection or acceptance and package marking; and

               (iv) The requested ship date.

          (b) In the event that Trident Group requests excess volume for a Purchase Order (i.e.,
the volume exceeds the volume of the Confirmed STP or Binding
Purchase Order), NXP Group shall use commercially reasonable efforts to accommodate
such request.

          (c) In the event that an Adjusted Binding Purchase Order leads to increases or
decreases of the cost of or the time required for the timely completion of the relevant
Binding Purchase Order (and Trident Group has approved such cost increases or decreases),
the agreed adjusted price and/or delivery schedule shall automatically become part of the
Adjusted Binding Purchase Order.

          6.7 Non-Compliance of Purchase Order. If a Purchase Order is not in line with the
applicable Confirmed STP or is otherwise not in compliance with this Agreement, and NXP Group does
not confirm such Purchase Order pursuant to Section 6.5(a)(ii), NXP Group shall as soon as
reasonably practicable provide Trident Group with written notice describing the non-compliance and
shall provide Trident Group a reasonable opportunity to remedy such non-compliance. If Trident
Group remedies such non-compliant Purchase Order, such Purchase Order shall become a Binding
Purchase Order.

          6.8 Cancellation of Purchase Orders. Trident Group may cancel any Purchase Order,
Binding Purchase Order or Adjusted Binding Purchase Order or portion thereof at any time by
submitting a written cancellation notice to NXP Group. In such event, Trident Group shall
compensate NXP Group for any actual work already completed by NXP Group pursuant to such cancelled
Purchase Order, Binding Purchase Order or Adjusted Binding Purchase Order as follows:

          (a) [****]

          (b) [****]

          (c) [****]

          (d) [****]

          (e) [****]

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     6.9 Production Hold.(a) In the event that Trident Group requests NXP Group to
hold the manufacturing of any Products ordered in a Binding Purchase Order or an Adjusted
Binding Purchase Order (the “Hold”), such Hold shall be subject to terms to be mutually
agreed upon by the Parties. In no event shall a Hold last more than three (3) months. If
Trident Group requests a Hold, it shall submit its request together with a written plan on
when and how the manufacturing process shall be resumed within such three (3) month period.

          (b) At the end of the Hold, NXP Group shall deliver the unfinished Products to Trident
Group, unless Trident Group requests NXP Group to (i) scrap the ordered Products, or (ii)
complete the manufacturing of the Products.

          (c) NXP Group shall invoice Trident Group in case of a scrap or delivery of unfinished
Products and Trident Group shall make payment to NXP Group equitably prorated based on the
stage of completion of the manufacturing process. Trident Group shall pay any such received
invoice within [****] of the date of invoice.

          6.10 Wafer Bank Storage. NXP Group shall maintain a Wafer Bank consistent with
generally accepted industry practices in order to store all ROM-coded Wafers in accordance with
current practices, and subject to Trident approval of Wafer starts.

ARTICLE 7

Consignment of Wafers, Risk of Loss, Packing and Date of Shipment

          7.1 Consignment of Wafers. During the Post-Finished Goods Period, or such earlier
time for Back End Services provided by NXP Group during the Finished Goods Period in accordance
with Section 2.1(b), Trident Group shall consign Wafers that are the subject of Back End Services
by NXP Plants to NXP Group, and NXP Group shall keep such Wafers in custody for the sole purpose of
using in Back End Services. NXP Group shall keep, store and use Wafers with the same care that it
extends to its own wafers. NXP Group shall insure, and shall provide at Trident’s request evidence
of such insurance, such Wafers against the risk of loss, damage or theft in accordance with its
insurance policies for its own products and shall make available to Trident any insurance proceeds
NXP Group shall receive under such insurance as a result of an insured event; provided, that
Trident shall be responsible for any applicable deductible or other setoff.

          7.2 Risk of Loss. Transfer of ownership of Wafers or Products supplied by NXP Group
to Trident Group shall occur at the time of shipment to Trident Group. Title and risk of loss
shall pass to Trident Group upon delivery to a carrier.

          7.3 Packing. NXP Group shall package the Wafers and Products in accordance with NXP
Group’s practices immediately prior to Closing, as applicable. If the instructions from Trident
Group are determined by NXP, acting in good faith, to not be commercially reasonable, NXP Group
shall provide Trident Group with an estimate of the excess cost of complying with such
instructions. Upon written acceptance by Trident Group of such estimate, NXP Group shall comply
with such instructions within the scope of such estimate.

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          7.4 Timely Delivery Performance.

          (a) NXP Group shall use commercial reasonable efforts to achieve the following levels
of on-time delivery performance, based on a monthly resolution period:

               (i) “Confirmed Line Item Performance” shall equal [****] based on NXP Group internal
performance excluding factors outside of NXP Group’s control, and shall be calculated as
follows: 100% times (x) order lines delivered to Trident Group before or on the first
confirmed delivery date, divided by (y) total number of order lines.

               (ii) “Requested Line Item Performance” shall equal [****] based on manufacturing and
capacity constraints only, and shall be calculated as follows: 100% times (x) order lines
delivered to Trident Group two (2) days before or one (1) day after the last requested
deliver date, divided by (y) total number of order lines.

          (b) Both Confirmed Line Item Performance and Requested Line Item Performance are
subject to (i) the provisions in Section 4.5(a), (ii) timely approval of Wafer starts by
Trident in accordance with Section 6.2, and (iii) the provisions in Sections 6.2 through
6.10, inclusive. For the avoidance of doubt, Requested Line Item Performance will be the
result of order acceptance in accordance with the Sections referenced in clauses (i), (ii)
and (iii) of this Section 7.4(b) and the order fulfillment (Confirmed Line Item Performance)
as described under Section 7.4(a)(i).

          7.5 Date of Shipment. The date on the bill of lading issued by the first carrier
shall be conclusive proof of the date and fact of shipment of the Wafers or Products.

ARTICLE 8

Product Qualification and Changes

          8.1 Product Qualification.

          (a) NXP Group shall perform Product qualifications in accordance with the Quality and
Reliability Specifications set forth in Annex J.

          (b) NXP shall release diffusion processes in accordance with NXP Group’s procedure
SNW-SQ-020 set forth in Annex J and shall release new packages in accordance with NXP
Group’s procedure SNW-FA-03-04 in Annex J.

          8.2 Quality Standards. NXP Group shall maintain the following certifications, with
such certifications to be provided by an internationally accredited certification body:

          (a) ISO9001 certification for its quality management system; and

          (b) ISO/TS16949 certification for NXP Plants.

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          8.3 Changes to Products Initiated by NXP. Any proposed changes affecting Products
shall be handled in compliance with JEDEC Standard JESD 46C; Customer Notification of
Production/Process Changes by Semiconductor Suppliers.

          8.4 Changes to Products Initiated by Trident. Trident shall provide all relevant data
(Product BOM) in a format acceptable to NXP.

          8.5 Discontinuance. NXP Group shall be entitled to discontinue Products or
Manufacturing Processes in accordance with JEDEC Standard JESD48B20.1.

ARTICLE 9

Warranties

          9.1 Services Warranty.

          (a) NXP Group warrants that it shall render the Manufacturing Services in accordance
with international good workmanship standards in the foundry and back end services industry
and consistent with past practice. NXP Group warrants that it shall use commercially
reasonable efforts to render the Manufacturing Services such that Products delivered to
Trident Group under this Agreement shall substantially meet the agreed specifications set
out in Annex J under normal use for a period (the “Warranty Period”) of one (1) year from
the date of shipment (the “Warranty”). The Warranty shall in any event not extend to (i)
defects to Products caused by accident, abuse, misuse, neglect, improper installation or
packaging, repair or alteration by someone other than NXP Group or its suppliers or
subcontractors, or improper testing or use, or (ii) defects caused by any Third Party
Providers.

          (b) If, during the Warranty Period, a valid Warranty claim is made, and:

               (i) NXP Semiconductors is notified promptly, but in any event within ten (10) Business
Days after discovery, of the underlying facts in writing by Trident; and

               (ii) any affected Products are returned to NXP Group without delay;

then NXP Group shall, as a sole and exclusive remedy, at its discretion, either repair,
replace, or compensate Trident Group with the applicable prices paid for such defective
Products.

          (c) Subject to Section 9.1(b), NXP Group shall promptly return to Trident Group all
Products repaired or replaced under the Warranty, transportation prepaid, and shall
reimburse Trident Group for the transportation charges paid by it for returning such proven
defective Products to NXP Group. Nothing in this Section 9.1(c) shall extend the above
twelve (12) month period for any Product beyond the original Warranty Period.

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          (d) OTHER THAN AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PRODUCTS AND SERVICES
PROVIDED UNDER THIS AGREEMENT ARE PROVIDED “AS IS” AND NXP GROUP MAKES NO OTHER
REPRESENTATIONS OR WARRANTIES UNDER THIS AGREEMENT, AND DISCLAIMS ANY AND ALL OTHER
REPRESENTATIONS OR WARRANTIES, STATUTORY, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION,
ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
NON-INFRINGEMENT.

ARTICLE 10

Limitation of Liability

          10.1 Direct Damages. In no event shall either Party be liable for direct damages
resulting from, arising out of, or in connection with a Party’s performance or failure to perform
under this Agreement, whether due to a breach of contract, breach of warranty, tort, negligence or
otherwise, except for actions constituting gross negligence or willful misconduct of such Party or
its Affiliates.

          10.2 Cap on Direct Damages. Except for any breach of the confidentiality obligations
under Article 11, in no event shall a Party’s liability for direct damages arising out of or
relating to this Agreement exceed, with respect to a claim, the total amounts paid or payable to,
or paid or payable by, such Party for services or Products to which the claim pertains.

          10.3 Indirect Damages. In no event shall either Party be liable for any indirect or
consequential damages (including loss of profits and loss of use) resulting from, arising out of,
or in connection with a Party’s performance or failure to perform under this Agreement, whether due
to a breach of contract, breach of warranty, tort, negligence or otherwise, even if a Party has
been advised of the possibility of such damages.

ARTICLE 11

Confidentiality

          11.1 Confidential Information. Each Party shall keep confidential this Agreement and
all proprietary and non-public information regarding the other Party and its Affiliates received
pursuant to this Agreement that is known to be or otherwise would be reasonably understood as
confidential given the nature of the information disclosed and the context of its disclosure (the
“Confidential Information”), and shall not disclose or reveal any such information to any Person
without the prior written consent of the other Party, other than those of its employees, officers,
directors, Affiliates, attorneys, accountants and financial advisors (“Permitted Representatives”)
who need to know such information for the purpose of taking any action required with respect to
this Agreement and shall cause those Permitted Representatives to observe the terms of this Article
11 and agree for the benefit of the other Party to do so (and any violation or breach of the terms
of this Article 11 by any Permitted Representative shall be deemed a breach hereof by the
applicable Party).

          11.2 No Other Use. Each Party shall not, and shall cause its respective Permitted
Representatives not to, use the other Party’s Confidential Information for any purpose

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other than in connection with this Agreement; provided, that nothing herein shall prevent a
Party or any of its Permitted Representatives from disclosing any such information that:

          (a) is or becomes generally available to the public other than as a result of a
disclosure by the such Party or its Permitted Representatives in violation of this Section
11.2 or any other confidentiality agreement between the Parties or any of their respective
Permitted Representatives or any other legal duty, fiduciary duty, or other duty of trust
and confidence of the Parties, any of their Permitted Representatives;

          (b) was within such Party’s or its Permitted Representative’s possession on a
non-confidential basis prior to being furnished with such information (provided that the
source of such information was not known by such Party at the time of such disclosure by
such Party or any of its Permitted Representatives to be bound by a confidentiality
agreement with, or other contractual, legal or fiduciary obligation of confidentiality to or
other duty of trust and confidence to, the other Party with respect to such information);

          (c) was independently developed by such Party without use of any information furnished
to such Party, any of its Permitted Representatives; or

          (d) becomes available to such Party or its Permitted Representative on a
non-confidential basis from a source other than the other Party (provided that such source
is not known by such Party at the time of such disclosure by such Party or any of its
Permitted Representatives to be bound by a confidentiality agreement with, or other
contractual, legal or fiduciary obligation of confidentiality to or other duty of trust and
confidence to, the other Party with respect to such information).

          11.3 Disclosure Required by Law. If any Confidential Information is required to be
disclosed by a Party in accordance with Applicable Law or judicial order, then such Party shall
notify the other Party in writing and shall cooperate with the other Party if the other Party
elects to seek a protective order or other appropriate remedy with respect to such required
disclosure. If no such protective order is obtained, and if the Party or any of its Permitted
Representatives has been advised by legal counsel in writing that it is legally compelled to
disclose any Confidential Information, then such Party or such Permitted Representative may
disclose such Confidential Information, but shall furnish only that portion of the Confidential
Information which such Party or is Permitted Representatives is advised by counsel is legally
required and shall exercise its reasonable efforts to obtain reliable assurance that confidential
treatment shall be accorded such Confidential Information.

          11.4 Return of Confidential Information. Upon the termination of this Agreement, each
Party shall return to the other Party all written Confidential Information that has been provided
to such Party under this Agreement; provided, that in lieu of returning such Confidential
Information to the other Party, each Party may destroy such Confidential Information and provide
the other Party with a written certification that such written Confidential Information has been
destroyed.

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ARTICLE 12

Licensing Arrangements

          Unless otherwise agreed, ownership by NXP Group of any Manufacturing Process shall be governed
as follows:

          (a) NXP Group solely owns all intellectual property rights, including, but not limited
to, patents, patent applications, inventions, know-how, trade secrets and mask works,
embodied in such Manufacturing Process and any improvements thereto.

          (b) In the event a specific Manufacturing Process is transferred to a Third Party
Provider in accordance with Article 14, NXP Group shall grant a restricted license to such
Third Party Provider with regard to such transferred Manufacturing Process to manufacture
products exclusively for Trident Group.

ARTICLE 13

Intellectual Property Indemnification

          13.1 Infringement by Trident Group.

          (a) Trident shall, at its own expense:

                    (i) defend any claims brought by a third party alleging that any Products developed or
supplied hereunder infringes any of such third party’s patent, trademark, copyright, mask work
right, trade secret or other intellectual property rights to the extent arising from (x) NXP
Group’s compliance with or implementation of any of Trident Group’s written instructions,
specifications, designs or requirements to manufacture, sell, and/or ship the Products for or to
Trident Group, or (y) use of equipment, materials supplies, know-how, methodologies or technology
owned by Trident Group and/or provided to NXP Group by Trident Group or a third party on the
instructions of Trident Group; and

                    (ii) indemnify and hold NXP Group harmless from all damages and costs directly attributable to
such claims.

          (b) Without limiting the foregoing, Trident shall, at its own expense, defend any
claims (whether based in contract, tort, patent infringement or otherwise) brought against
NXP Group, by Tessera Inc. or any of its Affiliates or any party
purporting to act on their behalf, arising out of or in connection with this Agreement
or any of the Products or Manufacturing Services provided hereunder. Trident shall
furthermore hold NXP Group harmless and indemnify NXP Group from all damages and costs
directly attributable to such claims.

          13.2 Infringement by NXP Group. NXP Semiconductors shall, at its own expense:

          (a) defend any claims brought by a third party against Trident Group that the
Manufacturing Processes or any other technologies used by NXP Group to manufacture the
Products purchased hereunder infringes any of such third party’s patent,

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trademark, copyright, mask work right, trade secret, or other intellectual property
rights; and

          (b) indemnify and hold Trident Group harmless from damages and costs directly
attributable to such claims; in each case excluding, however, infringement arising from or
in connection with compliance with or implementation of Trident’s instructions,
specifications, designs or requirements as set forth in Section 13.1 above.

          13.3 Separate Obligations. For the avoidance of doubt, this Article 13 does not
change, alter or add to NXP Group’s or Trident Group’s liability under the IP Transfer and License
Agreement.

          13.4 Indemnification Procedures. Any claims for indemnification by either Party shall
follow the indemnification procedures set forth in Section 11.4 of the SEA.

ARTICLE 14

Transfer of Manufacturing Processes

          14.1 Transfers Initiated by NXP.

          (a) Subject to consent by Trident, which shall not unreasonably be withheld, NXP Group
shall have the right to:

               (i) outsource any of the Manufacturing Processes to a reasonably acceptable Third Party
Provider;

               (ii) close any NXP Plant; or

               (iii) sell any NXP Plant;

provided, that any change that will impact cost, quality or service shall only be made with
reasonable notice in accordance with customary foundry practices (including, but not limited
to, JEDEC Standards) as necessary to avoid material liabilities, material financial impacts
or material threats to Trident Group’s business continuity, to the extent that such
liabilities, impacts or threats may be avoided by giving such reasonable notice.

          (b) Any required requalification shall be done in consultation with Trident.

          (c) For a transfer initiated by NXP Group, NXP Group shall bear the costs of any
required requalification, masks, engineering material and any required NXP Group manpower.

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ARTICLE 15

Term; Termination

          15.1 Term of the Agreement. This Agreement shall be effective as of the Closing Date
and shall remain in force until January 1, 2013 (the “Term”), subject to extension or earlier
termination as provided in this Article 15.

          15.2 Extension of the Term.

          (a) Upon the second anniversary of the Closing Date, if requested by either Party, the
Parties shall commence negotiations in good faith to agree an extension of the Term for the
continued provision by NXP Group to Trident Group of all or part of the Manufacturing
Services.

          (b) Subject to any extension of the Term, the Parties shall develop a plan for the
orderly wind down of the provision of Manufacturing Services during the remaining Term,
including the provision of Manufacturing Services for a limited period beyond such Term to
the extent necessary to avoid any undue negative impact upon the operations of either Party.

          15.3 Termination. Neither Party may terminate this Agreement prior to the expiration
of the Term; provided, however, that each Party may terminate this Agreement with immediate effect
by written notice to the other Party and without incurring any liability on its part in the event
that:

          (a) any proceeding under any bankruptcy or insolvency laws is brought against the other
Party, or a liquidator for a Party is appointed or applied for, or an assignment for the
benefit of creditors is made by a Party; or

          (b) a material breach of this Agreement by the other Party has occurred (which breach,
to the extent it is capable of being remedied, shall not have been
remedied within thirty (30) Business Days of the receipt of a written request by the
non-breaching Party to remedy such material breach).

ARTICLE 16

Miscellaneous 

          16.1 Force Majeure. In the event of a Force Majeure, the affected Party shall
immediately notify the other Party of the occurrence.

          16.2 Export Control. Each Party shall take all appropriate measures to comply in all
material respects with applicable provisions of export control laws and regulations, including any
applicable provisions of the United States Export Administration Act and implementing Export
Administration Regulation, and shall hold the other Party harmless from all damages arising out of
or in connection with any violation of any of the foregoing.

          16.3 Assignment. Neither this Agreement nor any of the rights, interests or
obligations under this Agreement may be assigned or delegated, in whole or in part, by operation

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of law or otherwise by any of the Parties without the prior written consent of the other
Party, and any such assignment or delegation without such prior written consent shall be null and
void, except that a Party may assign or otherwise transfer its rights without the prior consent of
the other Party (i) to a direct or indirect wholly owned Subsidiary, or (ii) in connection with a
merger, acquisition or sale of substantially all of such Party’s assets. Subject to the preceding
sentence, this Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the
Parties and their respective successors and assigns.

          16.4 Interpretations; Rules of Construction. When a reference is made in this
Agreement to Annexes, such reference shall be to an Annex to this Agreement unless otherwise
indicated. When a reference is made in this Agreement to Schedules, such reference shall be to a
Schedule to this Agreement unless otherwise indicated. When a reference is made in this Agreement
to Sections, such reference shall be to a Section of this Agreement unless otherwise indicated.
The words “include”, “include” and “including” when used herein shall be deemed in each case to be
followed by the words “without limitation.” The term “$” means United States Dollars. The headings
contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. Reference to the subsidiaries of an entity shall be
deemed to include all direct and indirect subsidiaries of such entity. The Parties agree that they
have been represented by legal counsel during the negotiation and execution of this Agreement and,
therefore, waive the application of any law, regulation, holding or rule of construction providing
that ambiguities in an agreement or other document shall be construed against the Party drafting
such agreement or document. In the event of a conflict between this Agreement and the SEA, the SEA
shall govern unless the context otherwise requires.

          16.5 Survival. The following Articles shall survive termination or expiration of this
Agreement: Article 9 (Warranties), Article 10 (Limitation of Liability), Article 11
(Confidentiality), Article 12 (Licensing Arrangements), Article 13 (Intellectual Property
Indemnification) and Article 16 (Miscellaneous).

          16.6 Entire Agreement. This Agreement and the annexes and schedules hereto constitute
the entire understanding and agreement of the Parties with respect to the subject matter hereof and
supersede all prior and contemporaneous agreements or understandings, inducements or conditions,
express or implied, written or oral, between the Parties with respect hereto. The express terms
hereof control and supersede any course of performance or usage of the trade inconsistent with any
of the terms hereof. Any additional or different terms on purchase orders, order confirmations and
acknowledgements or invoices are hereby rejected by the Parties, are void and not binding on either
Party.

          16.7 Amendments and Waivers. Any term or provision of this Agreement may be amended,
and the observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only by a writing signed by the Party to be
bound thereby. The waiver by a Party of any breach hereof or default in the performance hereof
shall not be deemed to constitute a waiver of any other default or any succeeding breach or
default. The failure of any Party to enforce any of the provisions hereof shall not be construed
to be a waiver of the right of such Party thereafter to enforce such provisions.

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          16.8 Third Party Rights. No provisions of this Agreement are intended, nor shall be
interpreted, to provide or create any third party beneficiary rights or any other rights of any
kind in any client, customer, employee, affiliate, stockholder, partner of any Party or any other
Person unless specifically provided otherwise herein and, except as so provided, all provisions
hereof shall be personal solely between the Parties to this Agreement.

          16.9 Severability. If any provision of this Agreement, or the application thereof,
shall for any reason and to any extent be invalid or unenforceable, then the remainder of this
Agreement and the application of such provision to other persons or circumstances shall be
interpreted so as reasonably to effect the intent of the Parties. The Parties further agree to
replace such void or unenforceable provision of this Agreement with a valid and enforceable
provision that shall achieve, to the extent possible, the economic, business and other purposes of
the void or unenforceable provision.

          16.10 Notices. All notices or other communications hereunder shall be given in
accordance with Section 12.9 of the SEA.

          16.11 Dispute Resolution.

          (a) The Parties shall attempt in good faith to resolve promptly any dispute arising out
of or relating to this Agreement.

          (b) In the event a dispute arises between the Parties under this Agreement that cannot
be resolved after good faith negotiation as contemplated by Section 16.11(a) within ten (10)
Business Days of a Party’s request, NXP Semiconductors or Trident, as applicable, shall
provide a written notice to the other describing, in reasonable detail, the substance of
such dispute or disagreement (the “Dispute Notice”). The chief executive officer of each of
NXP Semiconductors or Trident shall meet, confer and attempt to resolve the dispute or
disagreement within a period of thirty (30) days following delivery of such Dispute Notice.
If such chief executive officers are unable to resolve the dispute or disagreement within
such thirty (30) day period, then either party shall be entitled to commence dispute
resolution pursuant to Section 16.11(c) below.

          (c) Any dispute or disagreement arising under this Agreement that cannot first be
resolved as provided in Section 16.11(b) shall be finally and exclusively settled by binding
arbitration to be held in New York, New York. Either NXP Semiconductors or Trident shall
make written application to Judicial Arbitration and Mediation Services (“JAMS”), New York,
New York, for the appointment of a single arbitrator (the “JAMS Arbitrator”) to resolve the
dispute by arbitration. The arbitration shall be administered by JAMS pursuant to its
Comprehensive Arbitration Rules and Procedures. At the request of JAMS, the Parties shall
meet with JAMS at its offices within ten (10) Business Days of such request to discuss the
dispute and the qualifications and experience which each party respectively believes the
JAMS Arbitrator should have. The Parties shall cooperate with each other and JAMS to select
a JAMS Arbitrator within thirty (30) days of the written application to JAMS. The
arbitrator shall have the authority to grant any equitable and legal remedies that would be
available in any judicial

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proceeding instituted under New York law to resolve the dispute. Judgment upon the
award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
The losing party shall bear the cost of the arbitration, including the arbitrator’s fee. The
Parties hereto expressly waive all rights whatsoever to file an appeal against or otherwise
to challenge any award by the arbitrator hereunder, except that the foregoing does not limit
the rights of either Party to bring a proceeding in any applicable jurisdiction to conform,
enforce or enter judgment upon such award (and the rights of the other Party, if such
proceeding is brought, to contest such confirmation, enforcement or entry of judgment).

          (d) Nothing in this Section 16.11 shall preclude either Party from seeking injunctive
relief or any other equitable remedy in any applicable jurisdiction
sought to protect such party’s name, technology, Confidential Information or
intellectual property.

          16.12 Governing Law. The internal law, without regard for conflicts of laws
principles, of the State of New York shall govern the validity of this Agreement, the construction
of its terms, and the interpretation and enforcement of the rights and duties of the Parties.

          16.13 Attorneys Fees. The prevailing party is entitled to recover from the losing
party the prevailing party’s attorneys’ fees and costs incurred in any arbitration or other action
with respect to any claim arising out or relating to this Agreement.

          16.14 Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original as regards any Party whose signature appears thereon and all of
which together shall constitute one and the same instrument. This Agreement shall become binding
when one or more counterparts hereof, individually or taken together, shall bear the signatures of
all Parties reflected hereon as signatories.

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          IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above
written

	 	 	 	 	 
	 	TRIDENT MICROSYSTEMS (FAR EAST) LTD.

 	 
	 	By:  	/s/ Pete J. Mangan	 
	 	 	Name:  	Pete J. Mangan	 
	 	 	Title:  	President	 
	 

[Signature Page to Manufacturing Services Agreement]

 

 

CONFIDENTIAL TREATMENT REQUESTED – REDACTED COPY

	 	 	 	 	 
	 	NXP SEMICONDUCTORS NETHERLANDS B.V.

 	 
	 	By:  	/s/ Charles Smit	 
	 	 	Name:  	Charles Smit	 
	 	 	Title:  	Authorized Signatory	 
	 

[Signature Page to Manufacturing Services Agreement]

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