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Exhibit 10.22  

 
 

MANUFACTURING AGREEMENT    
    

        This agreement ("Agreement") is dated December 10, 1998, and is entered into by and between Displaytech, Inc., a corporation organized and existing
under the laws of the State of Colorado in the United States of America, with its principal place of business located at 2602 Clover Basin Drive, Longmont, CO 80503 U.S.A. ("DT"), and Miyota
Co., Ltd., established and existing under the laws of Japan, with its registered office located at 4107-5 Miyota-machi, Kitasaku-gun, Nagano-ken,
389-0294 Japan ("MYT"; along with DT a "Party", and together the "Parties"). 

RECITALS  

        WHEREAS, DT possesses technology intellectual property rights and know-how related to certain
micro-display devices using ferroelectric liquid crystals ("FLCs"); and 

        WHEREAS, MYT possesses know-how and expertise related to the mass manufacture of various types of micro-electronic devices;
and 

        WHEREAS, DT and MYT desire to enter into an agreement with respect to the performance by MYT of certain manufacturing services in relation
to certain micro-display products using FLCs that are based on or incorporate or include DT's technology intellectual property rights or know-how, or both, which performance of MYT
manufacturing services is for, upon the order of or on behalf of DT without regard to what the identity of the customer, assembler (if any), packager (if any) or user thereof is or may be; 

        NOW, THEREFORE, in consideration of the premises and the mutual promises of the parties contained herein, the parties agree as follows: 

1.     DEFINITIONS.  

As
used in this Agreement, the following terms shall have the meanings set forth below: 

	1.1
	"Products" shall mean all FLC micro-display glass on silicon and glass on glass devices which are based on or incorporate or include
DT's technology intellectual property rights or know-how, or both.

	1.2
	"Finished Products" shall mean Products that are completely processed and tested, and ready for shipment to the customer or other
person designated as the recipient thereof in the order pursuant to which such Finished Products have been manufactured by MYT.

	1.3
	"Semi-Finished Products" shall mean Products that are partially processed, meaning that they shall have been completed
through the FOL and MOL processes, but not the EOL processes.

	1.4
	"FOL" (Front of Line) shall mean all manufacturing processes required to produce good wafer to glass or glass to glass assembly of a
Product or Products. The assembly will be properly spaced and glue lines in place. The assembly will be ready for MOL processing.

	1.5
	"MOL" (Middle of Line) shall mean the processes required to properly singulate, fill, seal and test the silicon to glass, and the glass
to glass assembly of a Product or Products so that each such Product is ready for EOL processing.

	1.6
	"EOL" (End of Line) shall mean the final processes in the production of a Product or Products, each of which Products shall include all
packaging and final testing thereof. 

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	1.7
	"Manual" shall, when used with respect to an operation in the manufacturing process (whether FOL, MOL or EOL), mean an operation
performed solely by an operator who is a natural person, with no automation provided or associated therewith.

	1.8
	"Yield" shall, when used with respect to a specified part or Product, mean the number of good parts or Product of the type specified
versus the number of total parts or Products of the type specified produced by a process during a defined time period, and shall be determined by the following formula: 

	Y	 	=	 	GP

TP
	

Where Y	
 	

=	
 	

Yield in or for the time period in question
	

GP	
 	

=	
 	

the number (measured in units) of good parts or Products of the specified type produced in such time period by MYT
	

TP	
 	

=	
 	

the number (measured in the same units) of total parts or Products of such specified type produced in such time period by MYT

And
"good" means a part or Product that is produced by MYT under this Agreement and that meets or exceeds the quality control standards therefor that are herein or hereinafter specified by the Parties
with respect thereto 

	1.9
	"Yield Rates" shall, when used with respect to a specified part or Product, mean the average Yield with respect to such part or
Product, computed over many days or weeks of production, the number of such days or weeks to be mutually agreed to from time to time, on a reasonable basis, by the Parties.

	1.10
	"Qualify" or "Qualification", or words of like purport, shall, as related to a
manufacturing facility or a manufacturing process, mean that such manufacturing facility or such particular manufacturing process has been released to volume manufacturing by the Parties with respect
to a specified Product because such Product has been produced at such facility or pursuant to such process with predictable Yields that are acceptable to the Parties and has passed all tests required
by the Parties to determine that the Product specification is being met within the quality control standards therefor that are herein or hereinafter specified by the Parties with respect thereto. 

2.     DESIGN AND MANUFACTURE OF PRODUCTS.  

        2.1    Manufacture of Products.    DT and MYT agrees that MYT will manufacture Products for,
upon the order of or on behalf of DT upon the written request or notification of DT, subject to the terms and conditions hereof, during the term of this Agreement and any renewal thereof. 

        2.2    Products Covered by Agreement.    This Agreement governs all Products, whether
currently existing or subsequently developed during the term of this Agreement, or any renewal thereof. 

        2.3    Design of Products.    DT will be responsible for the design and development of the
Products. Each type of Product, such as, but not limited to, quarter VGA ("QVGA"), shall be identified and described in detail and listed in a schedule attached hereto as  Schedule 2.3, Product Description. Types of Product subsequently developed shall be added to Schedule 2.3 after specifications and
drawings have been developed for such Products. DT shall have the responsibility for developing such Product specifications and drawings. The design of each Product will be in accordance with DT's
Product specifications, which will include, among other things, product reliability, for quality control purposes, and will be set forth in drawings, or in other written or computer aided design data,
and delivered to 

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MYT.
MYT agrees to use the Product design only for manufacturing Products. If MYT believes Product can be manufactured more efficiently or for less cost by changing DT's Product design, MYT agrees to
inform DT of such changes and such changes will be incorporated in the Product design upon DT's written consent. 

        2.4    Manufacturing Processes for Products.    Displaytech will be responsible for the
development of manufacturing processes for the Products, whether such processes are implemented in DT's existing facilities in Longmont, Colorado, or in MYT's existing facilities in Nagano, Japan. As
provided below, MYT agrees to collaborate with DT toward the development and refinement of manufacturing processes for the Products, particularly in connection with the design and installation of
manufacturing facilities in Longmont, Colorado. DT will document its manufacturing processes and know-how and include it in a schedule attached hereto as  Schedule 2.4, Process Procedure Documentation. Such documentation will include specifications for each process, a process flow chart and certain
standards, such as, but not limited to, assembly, environmental and safety standards. All manufacturing processes and know-how subsequently developed during the term of this Agreement or
any renewal period, whether by DT or MYT, will be documented and added to Schedule 2.4. DT will furnish such documentation to MYT, free of charge, for the sole purpose of enabling MYT to
manufacture Product. MYT agrees that, if it determines that Product can be manufactured more efficiently or for less cost by changing, adding to or deleting from any of DT's manufacturing processes,
it will inform DT, and such changes will be incorporated into DT's manufacturing processes upon DT's written consent. 

        2.5    Process or Design Changes.    

        2.5.1    By DT.    DT may change Product design, Product specification or Product
manufacturing process requirements at any time upon thirty (30) days written notice to MYT, and MYT agrees to implement each such change on a reasonable, timely basis. If either Party believes
that any such change significantly affects manufacturing equipment requirements, the manufacturing processing fee, the Product price, or the delivery or quality performance of a Product, then that
Party will prepare and deliver to the other Party a written analysis of such impact. No change will be implemented until MYT and DT have discussed the proposed change, (including where applicable,
such written analysis). If any change required by DT hereunder results in agreed upon documented increased costs to MYT, then MYT will be able to recover such costs through increased depreciation
charges (over a five (5) year period) to the price of the related Finished Product, or by some other means agreed upon by DT and MYT; provided, however, that if any such change results in a
decrease in the manufacturing cost of the
related Finished Products, then DT and MYT shall share such decrease equally. No change in the manufacturing processing fee or Product price will be made as a result of such DT change, unless agreed
to by DT and MYT after completion of such review. The provisions of this paragraph shall be subject to the provisions of paragraph 2.5.3 of this Agreement. 

        2.5.2    By MYT.    If MYT wishes to change a manufacturing process in Nagano, then MYT will
discuss such proposed change with DT and request its approval. If DT approves the change, then DT's responsibility for the process will include such modification. If either Party believes that any
change to the manufacturing process proposed by MYT significantly affects the manufacturing processing fee, the Product price, or the delivery or quality performance of a Product, then that Party will
prepare and deliver to the other Party a written analysis of such impact. No change will be implemented until MYT and DT have discussed the proposed change (including, where applicable, such written
analysis). No change in the manufacturing processing fee or Product price will be made as a result of such DT change, unless agreed to by DT and MYT after completion of such review. If any change
recommended by MYT and accepted by DT hereunder results in agreed upon documented increased costs to MYT, then MYT will be able to recover such costs through increased depreciation charges (over a
five (5) year period) to the price of related Finished Product, or by some other means agreed upon by DT and MYT; provided, however, that 

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if
any such change results in a decrease in the manufacturing cost of related Finished Products, then DT and MYT shall share such decrease equally. The provisions of this paragraph shall be subject to
the provisions of paragraph 2.5.3 of this Agreement. 

        2.5.3    Emergencies.    In the case where an emergency change to a manufacturing process
needs to be made, whether in Longmont or in Nagano, the Parties will confer and use their best efforts to complete the change within seven (7) days of the discovery of the need. 

        2.6    MYT Responsibility for Manufacture of Products.    MYT agrees that, subject to the
terms and conditions hereof, and purchase orders issued by or on behalf of DT, it will manufacture all Product in accordance with the applicable Product design, will meet all Product specifications
contained in Schedule 2.3 attached hereto, and will act in accordance with the process procedures contained in Schedule 2.4 attached hereto. 

3.     MYT PRIVATE LABEL PRODUCTS  

        3.1    Applications.    DT agrees to sell Finished Product to Miyota for camcorder viewfinder,
wristwatch-type information terminals, and professional TV broadcast camera viewfinder applications ("Private Label Products" or "PLPs"). Subject to the prior written agreement of Nissho
Electronics Co. ("Nissho"), DT's exclusive distributor of Products in Japan, DT agrees that it will sell Finished Product only to MYT in Japan for such PLPs. If Nissho consents to MYT's exclusivity
for PLPs, then MYT will agree to make minimum annual purchases of Finished Products for such PLPs to maintain such exclusivity, which minimum requirements shall be set forth in  Schedule 3.1, Minimum Annual Volume
Requirements for PLP Exclusivity hereto. 

        3.2    Product Forecasts.    MYT agrees to provide nine (9) month rolling forecasts of
its projected sales of Private Label Products to DT to enable DT to provide MYT with a similar nine (9) month forecast of its manufacturing needs. Orders for PLPs will be processed in
accordance with the ordering process for other Products as described below. 

        3.3    Price of Private Label Products.    The price for the Finished Products for PLPs sold
by DT to MYT will be determined in accordance with a formula which will take into account such factors as the volume of Finished Products ordered for PLP's, the price charged by MYT to DT for
manufacturing such Finished Products, commissions DT may have to pay to Nissho regarding such Finished Products, patent license royalties DT must pay on sale of such Finished Products, and taxes and
import duties DT may have to pay in regard to such Finished Products. Such formula will be included in a schedule which is attached to this Agreement as Schedule 3.2,
Pricing Formula for Finished Products for Private Label Products. 

        3.4    Capacity Constraints.    MYT acknowledges and agrees that in the event its capacity to
manufacture Products becomes constrained, with the result that MYT cannot fill all of DT's Product orders: 1) up to forty percent (40%) of its available manufacturing capacity must be used to
manufacture Products ordered by or on behalf of DT for delivery to or for the account or upon the designation of Hewlett-Packard Company, and 2) DT may otherwise allocate the remaining MYT
manufacturing capacity among DT's other customers, including MYT, in any manner determined solely in the discretion of DT. 

4.     INSTALLATION OF MANUFACTURING FACILITIES.  

        4.1    Timetable.    DT and MYT agree to collaborate fully and to use their best efforts to
cause the installation of complete manufacturing facilities for the Products in DT's existing plant in Longmont, Colorado, and in MYT's existing plant in Nagano Prefecture, Japan in accordance with
the timetable attached hereto as Schedule 4.1, Timeline for Installation of Manufacturing Facilities, and as described below. 

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        4.2    DT's Longmont Plant.    DT agrees that during the period from January 1999
through April 1999 it will design, install, debug and Qualify FOL, MOL and EOL manufacturing processes at its plant in Longmont, Colorado. MYT agrees to undertake reasonable efforts, under the
circumstances, at its expense, to work with DT in designing, installing, debugging and Qualifying the FOL, MOL and EOL manufacturing processes in Longmont. It is expected that MYT's work and
assistance to DT in designing and installing the Longmont FOL, MOL and EOL manufacturing processes will provide MYT with valuable information and experience in regard to designing FOL, MOL and EOL
manufacturing processes in Nagano, Japan. The goal for DT's Longmont manufacturing facility is for a Manual, dependable, and stable manufacturing process. The Parties acknowledge that the Longmont
FOL, MOL and EOL manufacturing processes may not have high Yield Rates, and that such processes may not be replicated at MYT's manufacturing facility in Nagano, Japan. 

        4.3    Cost of Longmont Plant.    DT shall bear the entire cost of the equipment, tooling and
materials used for the installation and operation of the FOL, MOL and EOL manufacturing processes at its Longmont plant. DT shall own all such equipment, materials and tooling, as well as the design
of the manufacturing process. DT will be responsible for the cost of operation of its Longmont facility. 

        4.4    Operation of Longmont Plant.    The target date for completing Qualification and
beginning full scale operation of the Longmont FOL, MOL and EOL manufacturing processes is May 1, 1999. It is expected that by such date DT will begin full scale production of
Semi-Finished Products. The Semi-Finished Products will be shipped to MYT's plant in Nagano for EOL processing, as described below. DT will be responsible for Yield and quality
of the Semi-Finished Products assembled at its Longmont plant. 

        4.5    MYT's EOL Manufacturing Process in Nagano.    MYT agrees that during the period of
January through April 1999 it will design, install, and debug an EOL manufacturing process for Products at its existing facility in Nagano, Japan, which has an initial capacity as set forth in
Section 4.6. DT agrees to work with MYT in designing, installing, debugging, and Qualifying MYT's EOL manufacturing processes in Nagano, and the expenses incurred by DT in Nagano shall be borne
solely by DT. 

        4.6    Capacity of EOL Manufacturing Processes.    The initial capacity of the manufacturing
line for the EOL manufacturing process will be determined prior to ordering long lead time equipment for the EOL
process, and shall be based on the highest monthly total in DT's initial nine (9) month Product demand forecast as provided in Section 5.3 below, plus twenty percent (20%). 

        4.7    Cost of Nagano EOL Manufacturing Process.    MYT shall bear the entire cost of the
equipment, tooling and materials used for the installation of the EOL manufacturing process for Products at its Nagano plant. MYT shall own all such equipment, materials and tooling. MYT will be
responsible for all costs of operation of its EOL manufacturing process at its Nagano facility. 

        4.8    Qualification and Operation of Nagano EOL Manufacturing Processes.    The target date
for having MYT's EOL manufacturing process capable of initial production is May 1, 1999. Completion of Qualification and full scale production of MYT's EOL manufacturing process is expected to
be no later than July 1, 1999. MYT will notify DT of the time MYT believes the EOL manufacturing process is ready for Qualification, and DT, after receipt of such notice, will conduct an
inspection of the manufacturing line as a condition to Qualification. MYT will be responsible for compliance with the standards set forth in this Agreement with respect to the Yield and quality of the
Finished Products it produces from its EOL manufacturing process. 

        4.9    MYT's FOL and MOL Manufacturing Processes in Nagano.    MYT agrees that during the
period of January through July 1, 1999, based in part on its experience working with DT to design and install a manufacturing line at Longmont for FOL and MOL manufacturing processes, it will
work with DT to design a manufacturing line for FOL and MOL manufacturing processes at MYT's plant in 

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Nagano,
Japan. Such manufacturing line will be based in part on the technology and know-how developed by DT with MYT's help for the Longmont FOL and MOL manufacturing processes. Beginning
February 1, 1999 MYT agrees to discuss with DT at least monthly MYT's assessment of the design and operation of the FOL and MOL manufacturing processes to be installed at DT's Longmont facility
in relation to use of the same or a similar design at MYT's facility in Nagano. By July 1, 1999 MYT agrees to make a decision as to whether or not to order long lead time equipment for the
Nagano FOL manufacturing process based on MYT's and DT's assessment of the Longmont FOL process. In assessing the Longmont FOL process MYT and DT will take into consideration the stability of the
process as related to current Yield, and the stability of the process as related to the trend in Yields. If MYT and DT agree that the Longmont FOL process is not yet stable enough to predict
commercially viable Yields, and that more work is needed on the Longmont FOL process, then they agree to use their best efforts until August 31, 1999 to improve such process. If, on
August 31, 1999, the Parties cannot agree that the Longmont FOL process is stable enough to predict commercially viable Yields, and MYT decides not to order long lead time equipment for its
Nagano plant, then either Party may terminate this Agreement as it relates to MYT performing FOL and MOL manufacturing processes for DT in Nagano, by giving the other Party thirty (30) days
written notice of such termination. If either Party gives such notice of termination, then MYT agrees that it will continue to perform EOL manufacturing services for DT's Products in Nagano; provided,
however, because DT would have to seek another manufacturer to perform MYT's FOL and MOL operations, DT's obligations hereunder related to using MYT exclusively to manufacture Products, and its
obligation to sell Private Label Products exclusively to MYT, shall also be terminated. If the Parties agree that MYT should order the long lead time equipment for the FOL Manufacturing process in
Nagano, then during the period October 1, 1999 through March 1, 2000 MYT agrees to complete installation of and debug its manufacturing line for FOL and MOL manufacturing processes, and
to complete Qualification of such line by March 31, 2000, with full scale production beginning April 1, 2000. MYT will notify DT of the date MYT believes the FOL and MOL manufacturing
processes are ready for Qualification, and DT, after receipt of such notice, will conduct an inspection of the manufacturing line as a condition to Qualification. MYT will have responsibility for
compliance with the standards set forth in this Agreement with respect to Yield and quality of Products produced at its Nagano facility. 

        4.10    Capacity of FOL and MOL Manufacturing Processes.    The initial capacity of the
manufacturing line for the FOL and MOL manufacturing process will be determined prior to ordering long lead time equipment for the FOL and MOL manufacturing processes, and shall be based on the
highest monthly total of DT's most recent (prior to the order time) nine (9) month Product demand forecast as provided in Section 6.2 below, plus twenty percent (20%). 

        4.11    Changes to Capacity.    If, as a result of DT's Product demand forecasts and purchase
orders, DT and MYT, after discussion, agree that the manufacturing line at Nagano, or any part thereof, should be changed to increase its capacity, then DT will give MYT written notice that the change
needs to be made, and MYT will make the change within six (6) months of the date of the written notice by adding capital equipment at its expense. If DT's Product demand forecasts indicate that
DT's Product demand will exceed the capacity of the manufacturing line at Nagano, but that such forecasts will not require the addition of capital equipment, DT and MYT will discuss alternative
methods of meeting capacity demand, such as 1) increasing workers' hours (overtime), 2) adding workers, 3) adding shifts, or 4) streamlining the manufacturing process.
After discussion, the Parties will agree (and each Party agrees not to unreasonably withhold its agreement) on which alternative or alternatives should be undertaken, and MYT will thereafter use its
best efforts to implement such alternative(s) as quickly as possible, but in no event longer than one (1) month for alternative 1), and two (2) months for alternatives 2) through
4) after the date of agreement of the Parties. 

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5.     INITIAL MANUFACTURING SERVICES.  

        5.1    EOL Manufacturing Services at MYT's Nagano Plant.    The initial manufacturing services
performed by MYT for DT will consist of EOL processing in Nagano of Semi-Finished Products supplied by DT from its Longmont plant. MYT will perform such EOL processing in order to produce
Finished Products for delivery to DT or, at DT's direction, to its customers. 

        5.2    Forecasts and Orders.    

        5.2.1    Forecasts.    As soon as reasonably possible after execution of this Agreement by the
Parties, and to the extent it is able to do so, DT will furnish to MYT a written, non-binding forecast of the quantity and type of each Product DT expects to sell to its customers over the
next nine (9) months. This forecast will be updated monthly thereafter on or before the fifth day of such month. After DT and MYT have established the Product ordering procedures in accordance
with Section 5.2.2 below, and at a time in 1999 to be determined by the Parties, DT will issue an irrevocable purchase order to MYT for Product listed in the forecast in accordance with the
Product ordering procedures agreed upon by the Parties.. 

        5.2.2    Orders.    The Parties agree to cooperate and work diligently to establish ordering
procedures for the Products manufactured hereunder, which procedures shall be set forth in a schedule which is attached hereto as Schedule 5.2, Product Ordering
Procedures. The Parties anticipate there may be distinct
ordering procedures for the three separate manufacturing phases provided for hereunder: (i) where DT performs FOL and MOL manufacturing processing in Longmont and MYT performs EOL manufacturing
processing in Nagano, (ii) where MYT has Qualified its FOL and MOL manufacturing processes in Nagano, but DT supplies Semi Finished Products and/or materials and component parts to MYT from it
Longmont plant, and (iii) where MYT purchases materials and component parts directly from suppliers. Such procedures shall be based on and coordinated with DT's and MYT's contract obligations
to its materials and component parts suppliers, the lead times for such materials and component parts, and the lead time requirements of DT's customers. Product orders will also be based on the
forecasts set forth in Section 5.2.1 above, and the Parties expect that such orders will be made on a weekly basis. Each Party agrees to keep each other informed of the status of its orders for
materials and component parts for the Products, particularly orders for silicon wafers. All suppliers to MYT must be approved in advance in writing by DT. Any purchase order issued in accordance with
the Product ordering procedures will state lead times for the Product type, quantity, delivery date or dates, delivery instructions and price per unit of the Finished Product ordered. Notwithstanding
Section 5.3 following, MYT will be bound by the provisions of the purchase order issued by DT, regardless of whether MYT acknowledges or otherwise signs the purchase order, unless MYT
reasonably objects to such provision in writing. 

        5.3    Acceptance and Acknowledgement.    MYT will accept each purchase order issued by DT
within seven (7) days of issuance (unless such purchase order exceeds by more than twenty five percent (25%) the number of units of the covered Product as set forth in the forecast for the
applicable time period), and will acknowledge in writing the receipt and acceptance of each such purchase order, and will confirm delivery dates for quantities of Finished products that are the
subject of the purchase order. If the quantity of Product ordered for any month exceeds the forecasted number of units for that Product for such month by more than twenty five percent (25%), then the
Parties agree to discuss supply of such excess number of units. In any event, MYT will acknowledge and accept DT's purchase order for the maximum quantity of Product authorized, that is, one hundred
twenty five percent (125%) of the forecasted amount. In the event of any discrepancy between (1) the provisions set forth in this Agreement and (2) any purchase order, purchase order
confirmation or acknowledgement, invoice, or other communication between the Parties relating to a purchase order, the provisions of this Agreement shall prevail. 

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        5.4    Supply of Semi-Finished Product by DT.    DT agrees to timely supply
sufficient quantities and types of Semi-Finished Products to MYT to enable MYT to process and timely deliver the quantities and types of Finished Products ordered by DT. A complete list of
the materials and component parts for each type of Semi-Finished Product that is necessary for the assembly of Finished Products ordered by DT is or will be set forth in a schedule which
is attached hereto as Schedule 5.4, Materials and Component Parts. The Semi-Finished Products shall be processed, inspected and
electrically tested at DT's Longmont factory before being shipped to MYT. 

        5.5    Cost of Semi-Finished Products.    DT shall not charge MYT for the
Semi-Finished Products shipped for EOL processing by MYT. DT shall be responsible
for all costs related to shipping the Semi-Finished Products to MYT's Nagano plant, including shipping, insurance, and any import or export duties applicable to shipment of the
Semi-Finished Products to MYT. MYT agrees to notify DT of any necessary taxes, and import or export duties which are applicable to shipment of the Semi-Finished Products to
MYT. 

        5.6    Other Terms.    All other terms related to full scale manufacturing services, as set
forth below, shall apply to the initial EOL manufacturing services provided by MYT under this Article 5. 

6.     FULL SCALE MANUFACTURING SERVICES  

        6.1    FOL, MOL and EOL Manufacturing Services at MYT's Nagano Plant.    After MYT has
installed, debugged and Qualified a manufacturing line for FOL and MOL manufacturing processes in Nagano, MYT will perform substantially all of DT's high volume manufacturing of Products, and will do
so from its plant in Nagano, including FOL, MOL and EOL. 

        6.2    Forecasts, Orders Acceptance and Acknowledgement.    The procedures for forecasts,
orders, acceptance and acknowledgement established and contained in Sections 5.2 and 5.3 above shall apply to and be continued with respect to MYT's full scale manufacturing operations. 

        6.3    Product Fluctuation.    

        6.3.1    Rapid Increase in Product Demand.    In the event that DT's Product forecasts and
orders increase by one hundred percent (100%) or more within any six (6) month period, the Parties agree to meet to discuss courses of action to accommodate such increase. The Parties will
consider and agree (and each Party will not unreasonably withhold its agreement) on any of those actions described in Section 4.11 hereof. 

        6.3.2    Rapid Decreases in Product Demand.    In the event that DT's Product forecasts and
orders over any six month period indicate that the actual or projected purchases of Product by DT will fall below the agreed upon minimum Product purchase, as set forth in Section 9.1 hereof,
then the Parties will meet to discuss and agree (and each Party will not unreasonably withhold its agreement) upon a course of action to remedy shortfalls in purchase, including, but not limited to,
increasing Product sales or orders by DT, or increasing the per unit price of Product, in order to amortize on schedule the cost of the manufacturing equipment installed by MYT for the DT
manufacturing line 

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        6.4    Supply and Purchase of Semi-Finished Product for Full Scale
Manufacturing.    After MYT's manufacturing line for FOL, MOL and EOL is Qualified for full scale production, DT agrees to supply MYT with Semi-Finished
Products and the materials and component parts listed in Schedule 5.4, free of charge, for a period of three (3) months from the date of Qualification, and to enable MYT to produce
Finished Products to meet DT's orders. After such initial three (3) month period, DT agrees to supply the materials and component parts listed in Schedule 5.4 to MYT free of charge for
an additional three (3) month period. Thereafter, except for the supply of FLCs from DT, MYT shall purchase all materials and parts necessary to produce Finished Products directly from the
vendors and suppliers of such materials and parts. DT agrees to supply FLC materials to MYT free of charge during the term of this Agreement and any renewal period thereof for the Production of
Finished products to DT. DT agrees that after the three (3) month period for supplying Semi-Finished Products to MYT as stated above, it will restrict the capacity of its Longmont
plant to twenty (20) wafers per day per shift. 

        6.5    Finished Products.    All Finished Products produced by MYT will conform to the Product
specifications for the Products ordered, as set forth in Schedule 2.3, Product Description, and the warranties, and quality standards agreed upon by the Parties for the Finished Products
ordered, as set forth herein. 

        6.6    Final Quality Control Inspection and Testing of Finished Products.    MYT agrees to
conduct final quality control inspection and testing of all Finished Products in accordance with testing and acceptance criteria listed on Schedule 6.6, Quality and
Acceptance Tests, attached hereto, before releasing them to DT or DT's customers. 

        6.7    Delivery.    MYT agrees to deliver the quantities of Finished Product ordered to DT or
its customers, as may be designated by DT, on the delivery dates specified in the purchase order. MYT will strive for one hundred percent (100%) on time delivery of the Finished Products, defined as
receipt of the Finished Products by DT specified carrier on or before the delivery date specified in the purchase order. MYT agrees to promptly notify DT in the event delivery of the Finished Products
is delayed for any reason, and to use its best efforts to correct such delay 

        6.8    Shipment Terms, Title and Risk of Loss.    The Finished Products shall be shipped from
MYT's Nagano plant FOB Nagano (as defined in the 1990 INCO Terms, except that the term is not limited to sea or inland waterway transport). Title and risk of loss for a Finished Product passes to DT
when MYT delivers the Finished Product to the carrier for shipment to DT or its designated customer. If DT's customer for Finished Products is MYT, then title and risk of loss for a Finished Product
passes first to DT upon completion of the manufacturing processes for such Product, then to MYT upon receipt by DT of written notice of completion of the Product by MYT. 

        6.9    Warranty.    MYT warrants to DT that each Finished Product shall be manufactured in
accordance with the provisions of Section 2.6 hereof, and shall be free from defects in workmanship and materials for a period of one (1) year from the date of delivery to DT or its
designated customer, and will be free and clear of all liens, encumbrances, and other claims against title at the time of delivery. The foregoing warranty shall not apply to (i) DT consigned or
supplied materials and Semi-Finished Products, (ii) any Finished Product that is abused, damaged, altered or misused by DT, any DT customer, or any carrier into whose possession the
Finished Product has been delivered. 

        6.10    Non-Conforming Finished Products.    DT's remedy for any breach of the
Warranty set forth in Section 6.9 shall be, at DT's election, repair or replacement of the Finished product by MYT, or refund of the price paid for the such non-conforming Finished
Product. 

        6.11    Quality.    MYT shall maintain an acceptable documented quality system (such as an ISO
9002 certified quality program or equivalent) at its Nagano plant. MYT shall make available for DT 

9

 

review,
quality programs and supporting documentation. MYT programs shall include, but not be limited to, processes, and implementing and corrective action. 

7.     PRICE AND PAYMENT.  

        7.1    Price.    The price payable by DT to MYT for manufacture of the Products shall be
denominated in U.S. dollars and calculated in accordance with a formula to be determined and agreed to by the Parties (which agreement shall not be unreasonably withheld by either Party) and shall be
set forth in a schedule attached hereto as Schedule 7.1, Price. The formula shall take into consideration the labor costs of MYT to manufacture
the Products, the cost and depreciation (over a five (5) year period, based on the minimum order quantity set forth below) of the equipment purchased to manufacture the Products, facilities cost,
tooling, materials purchased by MYT for inclusion in the Product, Yield and profit. Upon the request of either Party, the Price for any given Product or Finished Product shall be reviewed at six
(6) month intervals or on any written notice of at least one hundred eighty (180) days. 

        7.2    Payment.    Payment by DT to MYT for Finished Products shall be due upon receipt of
payment by DT for the Finished Products from its customers, but in no event more than thirty (30) days after DT's receipt of such Finished Products (in accordance with the terms of this
Agreement, such receipt being deemed to have occurred when such Finished Products are receipted by DT, its customer or such other person as shall be designated as the proper recipient thereof in
connection with the purchase order
pursuant to which such Finished Products were manufactured), and shall be calculated in accordance with the applicable provisions of this Agreement (taking into account all adjustments effected
pursuant to any provision of this Agreement, including, but not limited to, any of the provisions of Section 8 hereof) and shall be made in U.S. dollars by an acceptable letter of credit
established two (2) weeks prior to date of delivery with a bank reasonably satisfactory to MYT. Such letter of credit shall remain open until drawn on by MYT. If the yen/US dollar exchange rate
fluctuates at a rate equal to or less than ten percent over any successive six (6) month period during this Agreement, then the payments due under this Agreement for such period shall be made
based on the average exchange rate over such six (6) month period. If the exchange rate fluctuates more than ten percent (10%) over any successive six (6) month period during this
Agreement, then the Parties agree to renegotiate the exchange rate and shall agree to the exchange rate to be used for payments under this Agreement, which agreement shall not be unreasonably withheld
by either Party. 

8.     YIELD AND PRICING.  

        8.1    Yield of MYT EOL Manufacturing Process.    MYT will price the Finished Product on which
it performs EOL processing based on Yield Rates of ninety percent (90%). The agreed upon price for such Finished Products will be firm unless Yield Rates fall below eighty percent (80%). In such
event, the Parties will meet to determine the cause of the decrease in Yield, and depending on such cause, the price may be changed by agreement of the Parties, which agreement shall not be
unreasonably withheld by either Party. The provisions of this Section 8.1 shall become void and of no further force or effect at the time MYT's manufacturing line for FOL and MOL manufacturing
processes is Qualified. 

        8.2    Yield as a Factor in Pricing Full Scale Manufacturing Product.    The Parties recognize
that Yield Rates could impact the cost of manufacturing Finished Products, and each agrees to discuss the effects of Yield in regard to pricing Finished Products. To the extent reasonable, each of the
Parties agrees to take Yield into consideration in the pricing formula established in Schedule 7.1. 

        8.3    Yield Rates Information Exchange and Meetings.    Each of the Parties agrees to have an
open exchange of information regarding Yield, and agrees to meet with the other Party, at least monthly, by telephone conference call or otherwise to discuss Yield. MYT agrees to provide information
regarding Yield Rates daily to DT by electronic means. 

10

 

9.     MINIMUM ORDERS.  

        9.1    Minimum Commitment.    During the period from July 1, 1999 to June 30,
2001 DT commits to purchase a minimum of three hundred fifty thousand (350,000) units of QVGA Products, or any Products which have a higher list price than QVGA Products manufactured by MYT. 

10.   EXCLUSIVE AGREEMENT.  

        10.1    DT.    DT agrees that with the exception of manufacturing Product on its own
manufacturing line at Longmont, Colorado, in accordance with the terms of this Agreement, DT will not manufacture or have a third party manufacture Products during the term of this Agreement or any
renewal thereof, unless MYT fails to install a manufacturing line for FOL and MOL manufacturing processes in Nagano, as described in Section 4.9 above, and unless MYT experiences a problem at
its Nagano plant so that MYT fails to meet DT's Product volume, price and quality requirements as set forth herein, and fails to cure such problem within a reasonable period of time. 

        10.2    MYT.    MYT agrees that it will use the manufacturing equipment it installs in Nagano
to manufacture Products in accordance with this Agreement only for the manufacture of Products and Finished Products, and no others. 

11.   INTELLECTUAL PROPERTY.  

        11.1    Intellectual Property Rights.    The term "Intellectual Property Rights" shall mean: 

        a)    Rights
in all U.S., Japanese, and foreign letters patent, applications for letters patent (including any reissue, re-examination, division, continuation,
continuation-in-part or provisional applications), patents of addition, invention certificates, industrial designs, industrial models, and utility models; 

        b)    Rights
in copyrights, rights of authorship, or any other literary property rights; 

        c)     Rights
under the Semiconductor protection Act or equivalent U.S., Japanese or foreign law; 

        d)    Rights
in trade secrets and know-how, including any equivalent rights that arise under common law, state law, federal law and the laws of Japan and foreign
countries, whether or not patentable, copyrightable, protectable by trademark or protectable under the Semiconductor Protection Act or equivalent U.S., Japanese or foreign protection. 

        11.2    Ownership of Intellectual Property Rights.    MYT agrees that all Intellectual
Property Rights that are applicable to or used in connection with the FOL, MOL and EOL manufacturing processes used or available to manufacture Products or Finished Products, in whole or part, whether
in Longmont, Colorado, or Nagano, Japan, and whether currently in existence or coming into being in the future ("DT IP Rights"), are and shall be owned by DT, either solely, or jointly with MYT, if
developed by MYT. 

        11.3    Use of Intellectual Property Rights.    Except as provided below in this
Section 11.3, MYT agrees that it will use DT IP Rights only to manufacture Products or Finished Products for or upon the order or on behalf of DT. MYT further agrees that it will not, at any
time, whether during the term of this Agreement or any renewal thereof, or afterwards, use DT IP Rights to manufacture products which are competitive with Products or Finished Products or any other DT
product or part. DT agrees that if MYT develops any Intellectual Property Right which is used in DT's FOL, MOL or EOL manufacturing processes, whether in Longmont, Colorado, or Nagano, Japan, MYT may
use such Intellectual Property Right in its other manufacturing lines to manufacture other products, so long as such other products are not competitive with any DT products, Product or Finished
Product. 

11

 

        11.4    Manufacturing Equipment.    If MYT owns or develops any Intellectual Property Right
which is used to make any piece of equipment that is used in the FOL, MOL and EOL manufacturing processes, whether in Longmont, Colorado, or Nagano, Japan, MYT agrees that it will not refuse to build
or sell such piece of equipment to DT if DT requests to purchase it or have it purchased. DT agrees that MYT may use such piece of equipment in other manufacturing lines for other products, so long as
such other products are not competitive to DT's products, Products or Finished Products. 

12.   CONFIDENTIALITY.  

        12.1    Confidential Information.    During the term and in the course of performing this
Agreement each Party may disclose information to the other concerning its business, technology, products, manufacturing, marketing, sales, and financial operations which is proprietary and
confidential to that Party (the "Discloser" or "Disclosing Party"). Such information may be disclosed in writing, orally or visually to the other Party (the "Recipient"). All information which is
marked confidential, if it is disclosed in writing or tangible form, or is designated as confidential at the time it is disclosed visually or orally and is thereafter identified and summarized in a
written memorandum which is delivered to the Recipient within thirty days of the date of the disclosure, shall be considered "Confidential Information" of the Disclosing Party. "Confidential
Information" shall not include information which: 

        (a)   was
known by the Recipient prior to receipt from Discloser; 

        (b)   is
or becomes a matter of public knowledge or known in the trade through no fault of Recipient; 

        (c)   is
rightfully received by Recipient from a third party without a duty of confidentiality to the third party; 

        (d)   is
independently developed by or for Recipient by individuals not having knowledge of or access to Confidential Information; 

        (e)   is
required to be disclosed by operation of law; or 

        (d)   is
disclosed by Recipient with Discloser's prior written permission. 

        12.2    Maintaining Confidence.    Recipient agrees that it will not disclose Confidential
Information to any third party without the Discloser's prior written consent. Recipient shall use Confidential Information only for the purpose of performing its obligations under this Agreement.
Recipient shall preserve and protect the confidentiality of the Confidential Information using the same degree of care, which shall be not less than a reasonable degree of care, which it uses to
protect its own Confidential Information. 

        12.3    Employees.    Each Party represents and warrants to the other that all of its
employees who perform work under this Agreement will protect the confidentiality of the other Party's Confidential Information with the same degree of care that they protect their own employer's
Confidential Information, and will use the Confidential Information only for the purpose of performing this Agreement. 

        12.4    Period of Confidentiality.    The obligation to protect Confidential Information shall
continue for a period of three years after expiration or termination of this Agreement. Upon expiration or termination of this Agreement, the provisions of this Article 12 shall survive and
remain in full force. 

        12.5    Confidential Disclosure Agreement Dated June 15, 1998.    The Parties
acknowledge and agree that upon execution hereof, this Agreement shall supersede that certain Confidential Disclosure Agreement ("CDA") between them dated June 15, 1998, and that all
Confidential Information disclosed under said CDA shall be treated as Confidential Information under this Agreement. 

12

 

13.   REPRESENTATIONS.  

        13.1    Representations of DT.    DT represents to MYT as follows: 

        13.1.1    Authority; Binding Effect.    DT represents that it is a corporation duly organized
and existing under the laws of the State of Colorado in the U.S.A.; that it has the corporate power and authority to execute, deliver, and perform this Agreement and the transactions contemplated
hereby and the execution and delivery of this Agreement have been duly authorized by DT; the execution, delivery, and performance of this Agreement and the consummation of the transactions
contemplated hereby do not and will not violate or conflict with any provision of DT's Certificate of Incorporation or Bylaws or, to the best knowledge of the individuals signing this Agreement, any
agreement, instrument, law or regulation to which DT is a party or by which DT is bound; no governmental or other approval or authorization of this Agreement or the acts or transactions contemplated
hereby is required by law or otherwise in order to make this Agreement binding upon DT; and this Agreement, and all other instruments required hereby to be executed and delivered to MYT by DT are, or
when delivered to MYT in accordance herewith, will be, legal, valid and binding instruments of DT enforceable in accordance with its terms. 

        13.1.2    Patents and Trademarks.    (a) DT owns all patents, rights to patents, patent
applications, trademarks and trade names necessary for it to satisfy the conditions of its performance hereunder (the "Patents and Trademarks") in Japan and any other country to which MYT exports the
Product on behalf of DT; (b) the issued Patents and Trademarks are subsisting and have not been adjudged invalid or unenforceable, in whole or in part, and there is no litigation or proceeding
pending concerning the validity or enforceability of the issued Patents and Trademarks; (c) to the best of DT's knowledge, each of the issued Patents and Trademarks is valid and enforceable;
(d) to the best of DT's knowledge, there is no infringement by others of the issued Patents and Trademarks; and (e) no claim has been made that the use of any of the Patents and
Trademarks does or may violate the rights of any third person, and to the best of DT's knowledge the use of the Patents and Trademarks does not infringe upon the patent or trademark rights of any
third party. 

        13.2    Representations of MYT.    MYT represents to DT as follows: 

        13.2.1    Authority; Binding Effect.    MYT represents that it is a corporation duly organized
and existing under the laws of Japan, that it has the corporate power and authority to execute, deliver, and perform this Agreement and the transactions contemplated hereby and the execution and
delivery of this Agreement have been duly authorized by MYT; the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby do not and will not
violate or conflict with any provision of MYT's Certificate of Incorporation or Bylaws or, to the best knowledge of the individuals signing this Agreement, any agreement, instrument, law or regulation
to which MYT is a party or by which MYT is bound; no governmental or other approval or authorization of this Agreement or the acts or transactions contemplated hereby is required by law or otherwise
in order to make this Agreement binding upon MYT; and this Agreement, and all other instruments required hereby to be executed and delivered to DT by MYT are, or when delivered to DT in accordance
herewith, will be, legal, valid and binding instruments of MYT enforceable in accordance with its terms. 

        13.2.2    Patents and Trademarks.    (a) MYT owns all patents, rights to patents,
patent applications, trademarks and trade names necessary for it to satisfy the conditions of its performance hereunder (the "Patents and Trademarks"); (b) the issued Patents and Trademarks are
subsisting and have not been adjudged invalid or unenforceable, in whole or in part, and there is no litigation or proceeding pending concerning the validity or enforceability of the issued Patents
and Trademarks; (c) to the best of MYT's knowledge, each of the issued Patents and Trademarks is valid and enforceable; (d) to the best of MYT's knowledge, there is no infringement by
others of 

13

 

the
issued Patents and Trademarks; and (e) no claim has been made that the use of any of the Patents and Trademarks does or may violate the rights of any third person, and to the best of MYT's
knowledge the use of the Patents and Trademarks does not infringe upon the patent or trademark rights of any third party. 

14.   INDEMNIFICATION.  

        14.1    DT Indemnification of MYT.    DT shall indemnify and hold harmless MYT and its
officers, directors, shareholders, agents, and employees (collectively "MYT") from and against any and all liability, damage, loss, cost, or expense (including reasonable attorneys' fees and
disbursements) resulting from any third party claim made, investigation, product recall, or legal proceeding (individually and collectively, a "Proceeding") brought against MYT or to which MYT is
subject to the extent such Proceeding arises or is alleged to arise as a result of (i) DT's negligence or willful misconduct; (ii) DT's breach of any of its representations or warranties
set forth herein; (iii) DT's material breach of any of the other terms of this Agreement, or (iv) is otherwise caused by or arises or is alleged to arise out of the DT's Product design
or specification. Upon being notified of any such Proceeding, MYT shall promptly notify DT in writing thereof and shall permit DT, at the sole cost and expense to DT, to defend and control the defense
of such Proceeding. MYT shall have the right to participate in the defense of such Proceeding at its own expense to the extent MYT's interest may be affected in such Proceeding. 

        14.2    Indemnification by MYT.    MYT shall indemnify and hold harmless DT and its officers,
directors, shareholders, agents, employees (collectively, "DT") from and against any and all liability, damage, loss, cost, or expense (including reasonable attorneys' fees and disbursements)
resulting from any third party claim made, investigation, product recall, or legal proceeding (individually and collectively, a "Proceeding") brought against DT or to which DT is subject to the extent
such Proceeding arises or is alleged to arise as a result of (i) MYT's negligence or willful misconduct; (ii) MYT's breach of any of its representations or warranties set forth herein;
or (iii) MYT's material breach of any of the other terms of this Agreement. Upon being notified of any such claim, investigation or legal proceeding, DT shall promptly notify MYT in writing
thereof and shall permit MYT at its sole cost and expense to defend and control the defense of such claim or legal proceeding. DT shall have the right to participate in the defense of such claim or
legal proceeding at its own expense to the extent that DT's interests may be affected in such Proceeding. 

15.   TERM.  

        15.1    Initial Term and Renewal.    The initial term of this Agreement is five
(5) years. The Agreement will automatically renew for an indefinite period thereafter, unless either Party provides written notice to the other Party of its intention not to renew the Agreement
at least eighteen (18) months prior to the expiration date of the initial term of the Agreement. During the renewal term of the Agreement, either of the Parties will have the right to terminate
the Agreement by providing written notice to the other Party eighteen (18) months prior to the date of termination. 

16.   TERMINATION.  

        16.1    Termination by Non-Breaching Party.    This Agreement may be terminated by
a Party in the event the other Party breaches a material term or condition of the Agreement. Except for a breach of a Party's Intellectual Property Rights, in order to terminate the Agreement for
breach, a Party must first give written notice of the breach to the other Party, describing the breach in detail, and request that executives of both Parties meet or confer by telephone conference to
resolve the breach amicably. If the Parties cannot resolve the breach in this manner within thirty (30) days of the written notice, then a Party can request that the matter be resolved by
mediation, to be held in Hawaii, USA at the East/West Center at the University of Hawaii. If the Parties cannot resolve the breach by mediation within 

14

 

thirty
days of the date mediation is requested, then a Party may request that the matter be resolved by arbitration to be held in Colorado pursuant to the rules of the American Arbitration
Association. If the arbitrator rules that the Agreement has been breached, then the Agreement shall be terminated twelve (12) months after the date of the arbitrator's ruling. During such
twelve (12) month period the Parties shall continue to perform their obligations under the Agreement in good faith. 

        16.2    Termination for Breach of Intellectual Property Rights.    A Party may immediately
seek injunctive relief in the U.S. District Court for the District of Colorado against the other Party for breach of the first Party's Intellectual Property Rights, and each Party hereby agrees to the
jurisdiction, and to be subject to the process, of such Court. 

        16.3    Effect of Termination.    In the event that this Agreement is terminated in accordance
with the provisions of this Article 16, then upon such termination date, or within a reasonable period of time thereafter, DT agrees to purchase and take delivery of, and MYT agrees to sell and
deliver to DT or as directed by DT all capital equipment and tooling it has purchased for use in or in connection with MYT's manufacturing line in Nagano for production of Products which (i) is
custom made by MYT for use with FLC devices, or (ii) directly handles FLC materials (both of which classifications are hereinafter referred to as "Buyout Equipment and Tooling"). After
receiving delivery of the Buyout Equipment and Tooling DT agrees to pay MYT the price therefor, which is that part of the original cost of the Buyout Equipment and Tooling that remains undepreciated
(as the term "depreciation" is used in Section 7.1 hereof) at the time of termination. The Parties agree that they will jointly classify all equipment and tooling purchased for use in MYT's
manufacturing line in Nagano for Products at the time it is purchased as either Buyout Equipment and Tooling or general purpose equipment and tooling ("General Purpose Equipment and Tooling"), with
respect to which DT has no buyout obligation. 

17.   GENERAL TERMS.  

        17.1    Governing Law.    This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the United States and the State of Colorado without giving effect to the principles of choice of law of such state. 

        17.2    Headings.    The headings of the Articles, Sections and paragraphs of this Agreement
are intended solely for convenience and shall not be deemed to constitute part of this Agreement or to affect the construction or interpretation hereof. 

        17.3    Severability.    In the event that a court of competent jurisdiction holds that
particular provisions or requirements of this Agreement are in violation of any law of the United States or any state thereof, such provisions or requirements shall not be enforced except to the
extent they are not in violation of any such law, and all other provisions and requirements of this Agreement shall remain in full force and effect. 

        17.4    Force Majeure.    Any delay in the performance of any of the duties or obligations of
either Party hereto (except the payment of money owed) shall not be considered a breach of this Agreement and the time required for performance shall be extended for a period equal to the period of
such delay, provided that such delay has been caused by or is the result of any acts of God; acts of the public enemy; insurrections; war; riots, embargoes, labor disputes, including strikes,
lockouts, job actions, or boycotts; fires; explosions; floods; shortages of material or energy; delay in transportation; any orders, actions or regulations of any governmental or regulatory authority
that will prohibit either Party from ordering or furnishing their respective products or performing any other aspect of their respective obligations under this Agreement; or other unforeseeable causes
beyond the control and without the fault or negligence of the Party so affected. The Party so affected shall give prompt notice to the other Party of such cause, and shall take whatever reasonable
steps are necessary to relieve the effect of such cause as rapidly as possible. 

15

 

        17.5    Notices.    All notices hereunder, other than day-to-day
communications, shall be in writing and delivered (i) personally, (ii) by registered or certified mail, postage prepaid; (iii) by overnight courier service, or (iv) by
facsimile, confirmed promptly by one of the foregoing delivery methods, to the following addresses of the respective Parties; 

	If to DT, individual copies to:	 	With a copy to:
	

Displaytech, Inc.

Attn: Haviland Wright

Chief Executive Officer

2602 Clover Basin Drive

Longmont, CO 80503-7603

Phone: (303) 772-2191

Fax: (303) 772-2193	
 	

Displaytech, Inc.

Attn: George E. Clough

General Counsel & Secretary

2602 Clover Basin Drive

Longmont, CO 80503-7603

Phone: (303) 772-2191

Fax: (303) 772-2193
	

If to MYT, individual copies to:	
 	

With a copy to:
	

Miyota Co., Ltd.

Attn: Yoritake Oya

4107-5 Miyota-machi

Kitisaku-gun

Nagano-ken

389-0294 Japan

Phone: 81 0267 (32) 3331

Fax: 81 0267 (32) 6327	
 	

Toshihiko Ide

4107-5 Miyota-machi

Kitisaku-gun

Nagano-ken

389-0294 Japan

81 0267 (32) 3331

81 0267 (32) 3520

Notices
shall be effective: (a) upon receipt if personally delivered or delivered by confirmed facsimile; (b) on the fifth business day following the date of mailing, if mailed; and
(c) upon receipt, if sent by overnight courier service. A Party may change its address listed above by notice to the other Party. 

        17.6    Waiver; Modification of Agreement.    No waiver or modification or amendment of any of
the terms of this Agreement, including its Schedules, shall be valid unless in writing and signed by authorized representatives of both Parties hereto. Failure by either Party to enforce any rights
under this Agreement shall not be construed as a waiver of such rights nor shall a waiver by either Party in one or more instances be construed as constituting a continuing waiver or as a waiver in
other instances. 

        17.7    Entire Agreement.    This Agreement constitutes the entire agreement between the
Parties concerning the subject matter hereof and supersedes all written or oral prior agreements or understandings with respect thereto. No course of dealing or usage of trade shall be used to modify
the terms hereof except as expressly set forth otherwise herein. 

        17.8    Assignment.    Except for the sale or transfer by DT of all or substantially all of
the its business, or DT's merger into another company, this Agreement shall not be assigned by either Party without the prior written consent of the other Party, which consent shall not be
unreasonably delayed or withheld. Any assignment to which consent is given shall be binding upon, inure to the benefit of, and be enforceable by, the assignee and any successors in interest of the
assignee. 

        17.9    Remedies.    In addition to the right to terminate this Agreement upon the breach or
default of a Party, the other Party shall be entitled to any other remedies to which it may be entitled at law or in equity including, but not limited to, monetary damages. 

16

 

18.   SCHEDULES ATTACHED.  

        18.1    Incorporation of Schedules and Terms.    All Schedules attached to the Agreement shall
be deemed a part of this Agreement and incorporated herein. Terms that are defined in this Agreement, and used in any Schedule, have the same meaning in the Schedule as in this Agreement. The Parties
acknowledge that on the effective date of this Agreement not all of the Schedules listed below have been completed. Each Party agrees, however, to use diligent, good faith efforts to complete the
contents of all such Schedules within sixty (60) days of the effective date of this Agreement. If the parties fail to complete all such Schedules by the sixtieth day after the effective date of
this Agreement, and the Parties have not agreed on an extension of such time period, then either Party may terminate this agreement on thirty (30) days written notice to the other Party. 

        18.2    List of Schedules.    The following Schedules are hereby made a part of this
Agreement: 

Schedule 2.3    Product Description

Schedule 2.4    Process Procedure Documentation

Schedule 3.1    Minimum Annual Volume Requirements for PLP Exclusivity

Schedule 3.2    Pricing Formula for Finished Products for Private Label Products

Schedule 4.1    Timeline for Installation of Manufacturing Facilities

Schedule 5.2    Product Ordering Procedures

Schedule 5.4    Materials and Component Parts

Schedule 6.6    Quality and Acceptance Tests

Schedule 7.1    Price  

 19.   COOPERATION OF PARTIES.  

        19.1    Future Circumstances.    The Parties have set forth in this Agreement their mutual
understanding and commitments regarding the development, manufacture and sale of the Products. The Parties further understand that they will cooperate and negotiate in good faith with each other in
order to resolve any future differences and to agree upon adjustments or modifications hereto which may be needed due to future circumstances, and to otherwise act to promote a long term relationship
regarding the Products and any future business dealings between the Parties. 

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

	MIYOTA CO., LTD.	 	DISPLAYTECH, INC.
	

By:	
 	

/s/  EIJI KAWAKAMI      
	
 	

By:	
 	

/s/  HAVILAND WRIGHT      

	

Name:	
 	

Eiji Kawakami
	
 	

Name:	
 	

Haviland Wright

	

Title:	
 	
President
	
 	

Title:	
 	
CEO

17

SCHEDULE 2.3  

 (Attached to and Part of the

Manufacturing Agreement

Between

Miyota Co., Ltd. and Displaytech, Inc.

Dated December 10, 1998)  

 PRODUCT DESCRIPTION

Date: February 5, 1999 

        The
Products subject to and manufactured under the Manufacturing Agreement are set forth in the following document, which is incorporated into and made a part of the Manufacturing
Agreement by reference thereto: 

	1.	 	Product:	 	QVGA Display Panel Product—"Palermo"
	 	 	Document Title:	 	QVGA "Palermo" Product Description
	 	 	Document No.:	 	REMF-04001
	 	 	Document Date:	 	February 5, 1999

        Any
Product developed by DT subsequent the date hereof that is to be manufactured under the Manufacturing Agreement will be added to this Schedule. 

	MIYOTA CO., LTD.	 	DISPLAYTECH, INC.
	

By:	
 	

/s/  YORITAKE OYA      
	
 	

By:	
 	

/s/  HAVILAND WRIGHT      

	

Name:	
 	

Yoritake Oya
	
 	

Name:	
 	

Haviland Wright

[LETTERHEAD] 

QVGA "PALERMO" PRODUCT DESCRIPTION

REMF-04001

DATE: 2/5/99 

ATTACHED DOCUMENTS WITHIN:  

	DOCUMENT NO./TITLE
 
	 	REVISION
	 	DATE

	Product Description Definition	 	Preliminary	 	01/99
	Wire Bond Diagram	 	Preliminary	 	01/99
	Die Attach Diagram	 	Preliminary	 	01/99
	LED Diagram	 	Preliminary	 	01/99
	Flex "A" Drawing	 	Preliminary	 	01/99
	Lid Photograph	 	Preliminary	 	01/99
	Stiffener Drawing—4027005	 	B	 	01/15/99
	Silicon Substrate Material Specification and Drawing—2325003	 	Preliminary	 	01/28/99

DISPLAYTECH SIGNATURE AND DATE  

	 
	 	 

	Project Leader:	 	/s/ [ILLEGIBLE] 2/2/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/2/99

MIYOTA SIGNATURE AND DATE  

	 
	 	 

	Process Engineer Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/5/99

Schedule 2.4  

 (Attached to and Part of the

Manufacturing Agreement

Between

Miyota Co., Ltd. and Displaytech, Inc.

Dated December 10, 1998)  

 Process Procedure Documentation

Dated: February 5, 1999 

        The
manufacturing processes developed by DT which are used to manufacture Products under the Manufacturing Agreement are set forth in the following document, which is incorporated into
and made a part of the Manufacturing Agreement by reference thereto: 

	1.	 	Document Title:	 	Manufacturing Processes
	 	 	Document No.:	 	REMF-04002
	 	 	Document Date:	 	February 5, 1999

        All
manufacturing processes and know-how subsequently developed during the term of the Manufacturing Agreement or any renewal period, whether by DT or MYT, will be documented
and added to Schedule 2.4. 

	MIYOTA CO., LTD.	 	DISPLAYTECH, INC.
	

By:	
 	

/s/  YORITAKE OYA      
	
 	

By:	
 	

/s/  HAVILAND WRIGHT      

	Name:	 	Yoritake Oya
	 	Name:	 	Haviland Wright

[LETTERHEAD]

MANUFACTURING PROCESSES

REFM-04002

DATE: 2/5/99 

ATTACHED DOCUMENTS WITHIN:  

	DOCUMENT NO./TITLE
 
	 	REVISION
	 	DATE

	BASIC CLEANROOM SPECIFICATIONS	 	ORIGINAL	 	01/99
	BASIC CLEANROOM SPECIFICATIONS FOR DI WATER	 	ORIGINAL	 	01/99
	MANUFACTURING PROCESS FLOW CHART	 	ORIGINAL	 	01/99
	REMF-03000 MANUFACTURING PROCESS MANUAL	 	ORIGINAL	 	01/99
	CONF-01000 ENGINEERING CHANGE ORDER PROCEDURE	 	ORIGINAL	 	01/99

	MATERIAL SPECIFICATIONS

PART NUMBER/TITLE
 
	 	REVISION
	 	DATE

	2300001 PERIMETER SEAL	 	ORIGINAL	 	01/99
	2300002 END SEAL	 	ORIGINAL	 	01/99
	2300003 SPACER BALL	 	ORIGINAL	 	01/99
	2300005 8086 FLC	 	ORIGINAL	 	01/99
	2300007 POLYIMIDE	 	ORIGINAL	 	01/99
	2300009 DIE ATTACH EPOXY	 	ORIGINAL	 	01/99
	2300011 BOND WIRE	 	ORIGINAL	 	01/99
	2300012 SILVER EPOXY	 	ORIGINAL	 	01/99
	2300013 DIE/WAFER HANDLING FILM	 	ORIGINAL	 	01/99
	2300014 BUFFING CLOTH	 	ORIGINAL	 	01/99
	2321004 SUBSTRATE, GLASS, 8", LOW R ITO, BBAR	 	ORIGINAL	 	01/99

DISPLAYTECH SIGNATURE AND DATE  

	 
	 	 

	Project Leader:	 	/s/ [ILLEGIBLE] 2/2/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/2/99

MIYOTA SIGNATURE AND DATE  

	 
	 	 

	Process Engineer Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/5/99

Schedule 3.1  

 (Attached to and Part of the

Manufacturing Agreement

Between

Miyota Co., Ltd. and Displaytech, Inc.

Dated December 10, 1998)  

 Minimum Annual Volume Requirements for PLP Exclusivity

Dated: February 5, 1999 

        The
Parties acknowledge that as of the date of this Schedule no minimum annual volume requirement for Private Label Products has been established. Such requirement will be established
and incorporated in this Schedule at such time as the Parties commence negotiations for the sale of any Private Label Product to MYT. 

	MIYOTA CO., LTD.	 	DISPLAYTECH, INC.
	

By:	
 	

/s/  YORITAKE OYA      
	
 	

By:	
 	

/s/  HAVILAND WRIGHT      

	Name:	 	Yoritake Oya
	 	Name:	 	Haviland Wright

Schedule 3.2  

 (Attached to and Part of the

Manufacturing Agreement

Between

Miyota Co., Ltd. and Displaytech, Inc.

Dated December 10, 1998)  

 Pricing Formula for Finished Products for Private Label Products

Date: February 5, 1999 

        The
Parties acknowledge that as of the date of this Schedule MYT has not yet ordered any Finished Products for PLPs; therefore, no pricing formula has been established. A pricing formula
will be established after an agreement has been concluded, but prior to the time MYT orders Finished Products from DT. 

	MIYOTA CO., LTD.	 	DISPLAYTECH, INC.
	

By:	
 	

/s/  YORITAKE OYA      
	
 	

By:	
 	

/s/  HAVILAND WRIGHT      

	Name:	 	Yoritake Oya
	 	Name:	 	Haviland Wright

Schedule 4.1  

 (Attached to and Part of the

Manufacturing Agreement

Between

Miyota Co., Ltd. and Displaytech, Inc.

Dated December 10, 1998)  

 Timeline for Installation of Manufacturing Facilities

Date: February 5, 1999 

        The
timeline for installation of the manufacturing facilities to be used to manufacture Products under the Manufacturing Agreement is set forth in the following document, which is
incorporated into and made a part of the Manufacturing Agreement by reference thereto: 

	1.	 	Document Title:	 	Installation of Manufacturing Facilities
	 	 	Document No.:	 	REFM-04005
	 	 	Document Date:	 	February 5, 1999

	MIYOTA CO., LTD.	 	DISPLAYTECH, INC.
	

By:	
 	

/s/  YORITAKE OYA      
	
 	

By:	
 	

/s/  HAVILAND WRIGHT      

	Name:	 	Yoritake Oya
	 	Name:	 	Haviland Wright

[LETTERHEAD] 

INSTALLATION OF MANUFACTURING

FACILITIES

REFM-04005

DATE: 2/5/99 

ATTACHED DOCUMENTS WITHIN:  

	DOCUMENT NO./TITLE
 
	 	REVISION
	 	DATE

	MASTER PLAN FOR DT AND MYT INSTALLATION	 	ORIGINAL	 	01/99
	MIYOTA MANUFACTURING TIMELINE	 	ORIGINAL	 	01/99
	MIYOTA EQUIPMENT INVESTMENT PLAN AND TIMELINE	 	ORIGINAL	 	01/99
	TESTER CAPITAL EQUIPMENT AND INSTALLATION TIMELINE	 	ORIGINAL	 	01/99
	WINK PROGRAM SCHEDULE	 	ORIGINAL	 	01/99
	REFLECTIVE MICRODISPLAY TESTER SPECIFICATION	 	ORIGINAL	 	01/99

DISPLAYTECH SIGNATURE AND DATE  

	 
	 	 

	Project Leader:	 	/s/ [ILLEGIBLE] 2/2/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/2/99

MIYOTA SIGNATURE AND DATE  

	 
	 	 

	Process Engineer Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/5/99

Schedule 5.2  

 (Attached to and Part of the

Manufacturing Agreement

Between

Miyota Co., Ltd. and Displaytech, Inc.

Dated December 10, 1998)  

 Product Ordering Procedures

Date: February 5, 1999 

        The
procedures for ordering Products manufactured under the Manufacturing Agreement are set forth in the following document, which is incorporated into and made a part of the
Manufacturing Agreement by reference thereto: 

	1.	 	Document Title:	 	Product Ordering Procedure
	 	 	Document No.:	 	REFM04006
	 	 	Document Date	 	February 5, 1999

	MIYOTA CO., LTD.	 	DISPLAYTECH, INC.
	

By:	
 	

/s/  YORITAKE OYA      
	
 	

By:	
 	

/s/  HAVILAND WRIGHT      

	Name:	 	Yoritake Oya
	 	Name:	 	Haviland Wright

[LETTERHEAD]

PRODUCT ORDERING PROCEDURE

REFM-04006

DATE: 2/5/99 

ATTACHED DOCUMENTS WITHIN:  

	DOCUMENT NO./TITLE
 
	 	REVISION
	 	DATE

	PRODUCT ORDERING PROCEDURE	 	ORIGINAL	 	01/99

DISPLAYTECH SIGNATURE AND DATE  

	 
	 	 

	Project Leader:	 	/s/ [ILLEGIBLE] 2/2/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/2/99

MIYOTA SIGNATURE AND DATE  

	 
	 	 

	Process Engineer Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/5/99

PRODUCT ORDER PROCESSING

Section 5.2  

        The following represents procedures that support the "Manufacturing Agreement" between Miyota and Displaytech dated December 10th, 1998. Where applicable
we have made reference to paragraphs within this agreement. 

Forecast Development  

        Displaytech will combine forecast information from all sources in an effort to consolidate overall customer requirements. This will include a forecast from
Miyota, (ref 3.2, 5.2.1), which will result in defining a build plan and subsequent purchase orders to Miyota for all product in phase one (5.2.2 i). Combined forecasts will extend 9 months. In phase
two (ref 5.2.2 ii) and phase three (ref 5.2.2 iii) Miyota will generate Build Plans based upon Displaytech forecast including scheduling and sourcing required materials which may possibly come from
Displaytech. 

Orders  

        All purchase orders will contain a Statement of Work specifically describing the manufacturing services to be performed by Miyota with respect to the products
ordered by Displaytech. Material to be supplied by Displaytech, at no charge, shall be referenced on the order. Supplied material, order lead times and pricing, in most cases, will be predefined. If
not predefined a request for quote will be written. Acceptance and acknowledgement as per (ref 5.2, 5.3, 6.3.1, 6.3.2). Initial correspondence via fax and e-mail. 

Irrevocable Orders  

        It is our intent to provide as stable a schedule as possible. We will make every effort to minimize schedule fluctuations within a (90)-day period (ref 5.3).
Displaytech will submit a 9 month forecast by the 5th day of each month with purchase orders covering through month 2 (current month plus 2 months). 

	Current
	 	note: 1
	 	note: 2
	 	 
	 	 
	 	 

	Month 0	 	Month 1	 	Month 2	 	Month 3	 	Month 4	 	Month 5
	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sep
	PO on the 5th	 	 	 	100% Commitment	 	Non-binding

Forecast	 	Non-binding

Forecast	 	Non-binding

Forecast

Notes:  1)    PO
not to exceed 125% of month 2 PO. 

             2)    PO
not to exceed 125% of month 3 forecast. 

Consigned Material  

        Displaytech will initially consign material to Miyota (ref 5.2.2). Miyota will manage this inventory by providing a current weekly status of on hand, scrapped and
consumed material. Scrapped or defective material should be returned to Displaytech for cause and corrective action. Displaytech will provide an estimated 2 week supply of material ahead of Miyota's
manufacturing start schedules. 

Finished Goods Management  

        From time to time, due to capacity planning and/or schedule smoothing, we may require product to be built for finished goods and held for shipment to our
customers. Finished goods inventory, at a location to be determined, will be monitored very closely and reviewed for determining future build schedules. 

Displaytech
Confidential 

Shipping  

        Displaytech will provide shipment direction for all customer products as soon as it becomes available. Actual shipment charges will most likely be prepay and add
to the customers invoice. Upon shipment Miyota will forward all relevant shipment documentation to Displaytech as soon as possible. Reimbursement to Miyota through normal payment terms (ref 7.2).
F.O.B. point will be origin if shipped in Japan and destination for all other cases. 

Displaytech
Confidential 

Schedule 5.4  

 (Attached to and Part of the

Manufacturing Agreement

Between

Miyota Co., Ltd. and Displaytech, Inc.

Dated December 10, 1998)  

 Materials and Component Parts

Date: February 5, 1999 

        The
materials and component parts necessary to produce the Products manufactured under the Manufacturing Agreement are set forth in the following document, which is incorporated into and
made a part of the Manufacturing Agreement by reference thereto: 

	1.	 	Document Title:	 	Materials and Component Parts
	 	 	Document No.:	 	REFM04007
	 	 	Document Date	 	February 5, 1999

	MIYOTA CO., LTD.	 	DISPLAYTECH, INC.
	

By:	
 	

/s/  YORITAKE OYA      
	
 	

By:	
 	

/s/  HAVILAND WRIGHT      

	Name:	 	Yoritake Oya
	 	Name:	 	Haviland Wright

[LETTERHEAD] 

MATERIALS AND COMPONENT PARTS

REFM-04007

DATE: 2/5/99 

ATTACHED DOCUMENTS WITHIN:  

	DOCUMENT NO./TITLE
 
	 	REVISION
	 	DATE

	QVGA BILL OF MATERIALS	 	ORIGINAL	 	01/99

DISPLAYTECH SIGNATURE AND DATE  

	 
	 	 

	Project Leader:	 	/s/ [ILLEGIBLE] 2/2/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/2/99

MIYOTA SIGNATURE AND DATE  

	 
	 	 

	Process Engineer Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/5/99

BILL OF MATERIALS - QVGA MINIMUM SIZE PRODUCT            1-8-98  

	PART NUMBER
	 	REVISION
	 	LEVEL
	 	ASSEMBLY OR PART DESCRIPTION
	 	QTY

	4027000	 	A	 	1	 	FINAL ASSEMBLY, QVGA, WINK	 	1
	4027007	 	A	 	2	 	    DISPLAY PANEL, ASSEMBLY, QVGA, PALERMO	 	1
	4027008	 	A	 	3	 	        BOND WIRE, 0.001" DIAMETER, Al 99% Si 1%	 	UNIT
	2300010	 	A	 	3	 	        ENCAPSULANT, EPOTEK OE107-3	 	UNIT
	2300009	 	A	 	3	 	        ADHESIVE, CELL ATTACH, EPOTEK OE107-1	 	UNIT
	4027003	 	A	 	3	 	        FLEX BARE, ASSEMBLY, QVGA, PALERMO	 	1
	4027005	 	A	 	4	 	            STIFFNER, A, CERAMIC, FLEX, QVGA, PALERMO	 	1
	4027009	 	A	 	4	 	            CONNECTOR, 25-PIN, VERTICAL	 	1
	4027010	 	A	 	4	 	            CAPACITOR, CERAMIC, 0603 (if needed)	 	1
	4027011	 	A	 	4	 	            CAPACITOR, TANTALUM, 0604 (if needed)	 	1
	4027012	 	A	 	4	 	            RESISTOR, 0603 (if needed)	 	1
	4027002	 	A	 	3	 	        DIE CELL, QVGA, PALERMO	 	1
	2300005	 	A	 	4	 	            FLC, 8068	 	UNIT
	2300007	 	A	 	4	 	            POLYIMIDE	 	UNIT
	2300012	 	A	 	4	 	            ADHESIVE, CONDUCTIVE, EPOTEK 4110	 	UNIT
	2321004	 	A	 	4	 	            GLASS, 200 mm, ITO, BBAR	 	1
	2325003	 	A	 	4	 	            WAFER, 200 mm, QVGA, PALERMO	 	1
	2300003	 	A	 	4	 	            SPACER BALLS, ONE MICRON	 	UNIT
	2300002	 	A	 	4	 	            ADHESIVE, ENDSEAL, 3 BOND	 	UNIT
	2300001	 	A	 	4	 	            ADHESIVE, PERIMETER SEAL, NORLIN 68	 	UNIT
	4027012	 	A	 	2	 	    ILLUMINATOR, ASSEMBLY, Q-RAINBOW	 	1
	4027013	 	A	 	3	 	        HOUSING, Q-RAINBOW	 	1
	4027014	 	A	 	3	 	        DBEF FILM, ZERO DEGREE, Q-RAINBOW	 	1
	4027015	 	A	 	3	 	        INITIAL POLARIZING FILM, Q-RAINBOW	 	1
	4027016	 	A	 	3	 	        CLEAN-UP, POLARIZING FILM, IP38-01-1,

            Q-RAINBOW	 	1
	4027017	 	A	 	3	 	        DIFFUSING EPOXY, Q-RAINBOW	 	UNIT
	4027018	 	A	 	3	 	        ADHESIVE, Q-RAINBOW	 	UNIT
	4027019	 	A	 	2	 	    FLEX, ILLUMINATOR, ASSEMBLY, Q-RAINBOW	 	1
	4027020	 	A	 	3	 	        FLEX B, ASSEMBLY, QVGA, Q-RAINBOW	 	1
	4027021	 	A	 	4	 	            LED, NICHIA, MSCM310A	 	1
	4027022	 	A	 	4	 	            CONNECTOR, 7-PIN, MOLEX 52689-0793	 	1
	4027023	 	A	 	4	 	            FLEX, B, BARE, QVGA, Q-RAINBOW	 	1
	4027024	 	A	 	4	 	            MOSFETS, DIGIKEY, SOT23 (option #1)	 	3
	4027025	 	A	 	4	 	            DIODE, SCHOTTKY, DIGIKEY, SOT23 (option #2)	 	1
	4027026	 	A	 	3	 	        TAPE, FLEX, DOUBLE-SIDED	 	UNIT

DISPLAYTECH CONFIDENTIAL  

 Schedule 6.6  

 (Attached to and Part of the

Manufacturing Agreement

Between

Miyota Co., Ltd. and Displaytech, Inc.

Dated December 10, 1998)  

 Quality and Acceptance Tests

Date: February 5, 1999 

        The
quality and acceptance tests for the Products manufactured under the Manufacturing Agreement are set forth in the following document, which is incorporated into and made a part of
the Manufacturing Agreement by reference thereto: 

	1.	 	Document Title:	 	Quality and Acceptance Test
	 	 	Document No.:	 	REFM04008
	 	 	Document Date	 	February 5, 1999

	MIYOTA CO., LTD.	 	DISPLAYTECH, INC.
	

By:	
 	

/s/  YORITAKE OYA      
	
 	

By:	
 	

/s/  HAVILAND WRIGHT      

	Name:	 	Yoritake Oya
	 	Name:	 	Haviland Wright

[LETTERHEAD]

QUALITY AND ACCEPTANCE TEST

REFM-04008

DATE: 2/5/99 

ATTACHED DOCUMENTS WITHIN:  

	DOCUMENT NO./TITLE
 
	 	REVISION
	 	DATE

	STANDARD VISUAL ACCEPTANCE CRITERIA	 	ORIGINAL	 	01/99
	QASR-02600 LCQC	 	1	 	10/98
	QASR-03100 FILL INSPECTION	 	2	 	05/98
	QASR-03300 PHYSICAL QC	 	4	 	11/98
	QASR-03500 PANEL QA	 	ORIGINAL	 	01/99

DISPLAYTECH SIGNATURE AND DATE  

	 
	 	 

	Project Leader:	 	/s/ [ILLEGIBLE] 2/2/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/2/99

MIYOTA SIGNATURE AND DATE  

	 
	 	 

	Process Engineer Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/5/99

Standard Visual Acceptance Criteria  

Note:
These acceptance criteria are common to all displays. Special application may require additional inspection/tests. 

No
glue in active area

Complete glue seal

No particles causing interference fringes

No visible scratches

No electrical/driving problems (lines out, scrolling etc)

No more than 3 pixels out, no two adjacent

No visible alignment defects in black state

No more than 4 color bands

No image sticking

Contrast greater than 200:1 

All
criteria are "as measured". Magnification or test conditions for inspection purposes are representative of customer application. Refer to specific documentation for details. 

  

	 TITLE: FILL INSPECTION	 	SPECIFICATION NUMBER

QASR-03100	 	 	 	REVISION

2
	

	DISPLAYTECH PROPRIETARY INFORMATION
	

	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12
	2	 	2	 	2	 	2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	13	 	14	 	15	 	16	 	17	 	18	 	19	 	20	 	21	 	22	 	23	 	24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	25	 	26	 	27	 	28	 	29	 	30	 	31	 	32	 	33	 	34	 	35	 	36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	
REVISION
	
 	

DATE
	
 	

DESCRIPTION
 

	1	 	7/97	 	Change doc to Fill/Glue Dam Inspect, remove Physical QC sec and create new Doc, QASR-03300.
	2	 	4/98	 	Remove Glue Dam and Scribe inspection from process., add polarizer to tools, remove 40X magnifier

	

	ORIGINATOR	 	PRODUCT ASSURANCE
	

	PROCESS ENGINEERING MANAGER	 	FACILITIES/MAINTENANCE
	

	MANUFACTURING MANAGER	 	PRIMARY TECHNICIAN
	

CONFIDENTIAL MATERIAL

Displaytech, Inc.

1

 
	1.0
	PURPOSE

	

	To
provide an inspection procedure of the physical quality of the units during the final assembly process. The procedure is performed after fill.

	2.0
	SCOPE

	

	This
document covers operation and material handling procedure necessary for manufacture of ICD parts.

	3.0
	APPLICABLE
DOCUMENTS

	3.1
	MSDS
for chemicals used in process.

	3.2
	Microscope
training specification

	3.3
	ESD
training specification.

	3.4
	Ergonomic
training specification.

	4.0
	EQUIPMENT
AND MATERIALS

	4.1
	Equipment

Not applicable

	4.2
	Chemicals

IPA

	4.3
	Materials

Texwipe TX609

	4.4
	Tools

#5 tweezers

Polarizer, hand held

	5.0
	GENERAL/SAFETY
REQUIREMENTS

	5.1
	Due
to the potential hazards to untrained personnel there should be no attempt to operate the system unless a complete orientation has been given by qualified personnel.

	5.2
	Safety
glasses shall be worn at all times.

	5.3
	Chemical
resistant gloves shall be worn when handling any chemical.

	5.4
	Process
Specific Requirements 

        5.4.1 Only
one open lot at each inspection station at a time. 

        5.4.2 Traveler
must be completed and rejects properly stored before beginning the next lot. 

2

 

	5.5
	ESD
wrist strap shall be worn while handling live parts.

	6.0
	PROCESS
SET UP

	6.1
	Clean/Prepare
area 

        6.1.1 Remove
any unnecessary items from work area. 

        6.1.2 Wipe
down area surfaces with IPA. 

        6.1.3 Wipe
down area surfaces with clean dry wipes. 

	6.2
	Clean/Prepare
Materials 

        6.2.1 Wipe
down scale plate with clean dry wipe to remove any loose particles. 

        6.2.2 Wipe
inside of mixing tray with IPA. 

        6.2.3 Wipe
inside of mixing tray with dry, clean wipe. 

	6.3
	Setup/Verify
Equipment.

	7.0
	PROCEDURE

	7.1
	Fill
Inspection 

        7.1.1 Determine
completeness of fill using a Polarizer. Carefully inspect each cell, rotating the polarizer through complete 360 degrees. The Cell must be below 30 deg C
during inspection. Refer to Drawing 7.3 

        7.1.2 Fill
area inside the cell must be 100% filled. The liquid crystal should be smooth in texture to the eye and there can be no defects. The following defects are to be
rejected: 

	

	Color
bands, reject if 4 or more bands are observed

Particles, reject for any, should be caught at Physical QC

Bubbles, rework if any, reject if any

Incomplete fill, rework if any, reject if any

Major zig zags, reject if any, small zig zag at fill hole is allowed

Focal conics, reject if any 

        7.2   If
Fill is incomplete or there are bubbles, the Fill Process, BKND-03300, may be repeated up to twice to recover the part. Repeat Fill inspections as necessary. 

        7.3   100%
Filled Cell Drawing 

3

 

  

	8.0
	PROCESS
SHUTDOWN

	8.1
	Mark
all reject parts on the window with a sharpie maker using the following code.

	

	F—Fill
Problem

	8.2
	Fill
out Job Traveler with yield and process information as necessary, note any and amount of reworks.

	8.3
	Clean
up area.

	9.0
	PROBLEM
SOLVING/TROUBLE SHOOTING

	

	Not
applicable 

4

  

	 TITLE: PHYSICAL QC	 	SPECIFICATION NUMBER

QASR-03300	 	 	 	REVISION

4
	

	DISPLAYTECH PROPRIETARY INFORMATION
	

	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12
	3	 	3	 	4	 	4	 	3	 	3	 	3	 	3	 	3	 	3	 	3	 	3
	

	13	 	14	 	15	 	16	 	17	 	18	 	19	 	20	 	21	 	22	 	23	 	24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	25	 	26	 	27	 	28	 	29	 	30	 	31	 	32	 	33	 	34	 	35	 	36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	
REVISION
	
 	

DATE
	
 	

DESCRIPTION
 

	1	 	5/98	 	Change order of inspection to particle, delam glue line, scribe, glue registration, glue line, glue tip, scratches, add definition and reject limits, add QA form
	2	 	6/98	 	Clarify instructions, drawing numbers, referenced documents
	3	 	10/98	 	6.2.1 remove ref. To spec; 6.2.2 remove ref to set up; 7.4.4 remove measurement of glue line thickness; 7.4.6.3 remove measurement of registration; 7.5.1 remove ref. to scratch size; add three new inspection format
sheets; Section 7.2, add sentence to 1st Note, to include, "APIX numbering is performed per the XY grid numbering system supplied by HP".
	4	 	11/23/98	 	Add sentence to 1st Note under Section 7.0, PROCEDURE, to include, "If a die has a defect, but does not fail specification, mark a "P" on the yield form for that defect."; Section 7.1.3, change sentence to read,
 "Any die with a visible scratch, other than a buff scratch, is rejected."; Section 7.1.4, change sentence to read, "Any die that has contamination that blocks more than 5 pixels will be rejected."

	

	ORIGINATOR

BRIAN McCONAHY	 	PRODUCT ASSURANCE
	

	PROCESS ENGINEERING MANAGER	 	FACILITIES/MAINTENANCE
	

	PRODUCTION MANAGER	 	PRIMARY TECHNICIAN
	

CONFIDENTIAL MATERIAL

Displaytech, Inc.

1

 
	1.0
	PURPOSE

	1.1
	To
provide a procedure of qualifying the physical characteristics of singulated die.

	2.0
	SCOPE

	2.1
	This
document covers inspection procedures and criteria for the determination of physical qualities of singulated die.

	3.0
	APPLICABLE
DOCUMENTS

	3.1
	MSDS
for IPA (isopropyl alcohol)

	3.2
	Form:
Laminate Physical QC, last page of this document

	4.0
	EQUIPMENT
& MATERIALS

	4.1
	Equipment

Green, monochromatic light source

40X Lighted Microscope

Sharpie Fine (or Ultra Fine) Point Marker, not red

	4.2
	Chemicals

IPA (isopropyl alcohol)

	4.3
	Materials

TexWipe Part # TX2209 Wipes

	4.4
	Tools

Not applicable

	5.0
	GENERAL/SAFTEY
REQUIREMENTS

	5.1
	Due
to the potential hazards to untrained personnel, there should be no attempt to execute the following procedure by "unqualified personnel", nor be assisted by such personnel unless
following a formal orientation procedure.

	5.2
	All
personnel in the room shall wear safety glasses at all times, except when they are using the microscope.

	5.3
	Gloves
shall be worn at all times when handling die. Chemical resistant gloves shall be worn whenever handling chemicals.

	5.4
	Process
Specific Requirements

	5.4.1
	Only
one open lot at each inspection station at a time.

	5.4.2
	Job
traveler must be completed and all die properly stored before beginning the next lot.

	5.4.3
	Workstation
must be wiped down between lots. 

2

 

	6.0
	PROCESS
SETUP

	6.1
	Clean/Prepare
area

	6.1.1
	Remove
any unnecessary items from work area.

	6.1.2
	Wipe
down area surfaces with IPA.

	6.1.3
	Wipe
down area surfaces with clean dry wipes.

	6.2
	Setup/Verify
Equipment

	6.3
	ESD
Grounding

	6.3.1
	When
handling live die, follow ESD methods at all.

	7.0
	PROCEDURE

	

	Note:
Mark each die with all of the defects found on that individual die. The explanations for individual reject codes are listed in section 9. If a die has
a defect, but does not fail specification, mark a "P" on the yield form for that defect.

	7.1
	Physical
QC inspections performed prior to singulation.

	7.1.1
	Particle
Inspection:

	

	Using
a green monochromatic light source, view the die so that the reflection of the light source can be seen in the die. Look for any fringes that emanate
from a single point. Any die that has two or more concentric dark bands under the green light is a reject die. This means a die with any portion of a dark band surrounded all or in part by another
dark band.

	

	Mark
the window of any die failing the particle inspection with the letter "P" using a black sharpie marker, and record on the Yield Breakdown form.

	7.1.2
	Glue
Line Inspection: Performed using magnification.

	7.1.2.1
	Glue
Covering Pixels:

	

	Any
die on which glue covers any portion of the pixilated active area of the display is rejected.

	

	Mark
the window of any die failing the glue covering pixel inspection with the letter "R" using a black sharpie marker, and record on the Yield Breakdown
form.

	7.1.2.2
	Continuous
Glue Line:

	

	Start
at the fill hole and verify the completeness of the glue seal by following it around the cell. Check for gaps, collections of bubbles, or breaks which
would allow the flow of liquid crystal from the inside to the outside of the cell (except for the fill hole). Any die with a glue line break is rejected. 

3

 

	

	Glue
line breaks due to circuit topography are not rejected.

	

	Mark
the window of any die failing the continuous glue line inspection with the letter "G" using a black sharpie marker, and record on the Yield Breakdown
form.

	7.1.3
	Window
Scratch: Performed using magnification.

	

	Any
die with a visible scratch, other than a buff scratch, is rejected.

	

	Mark
the window of any die failing the window scratch inspection with the letter "W" using a black sharpie marker, and record on the Yield Breakdown form.

	7.1.4
	Display
Contamination: Performed using magnification

	

	Any
die that has contamination that blocks more than 5 pixels will be rejected.

	

	Mark
the window of any die failing the display contamination inspection with the letter "C" using a black sharpie marker, and record on the Yield Breakdown
form.

	7.1.5
	Other
rejects:

	

	Mark
the window of any die with any other reject with the letter "O" using a black sharpie marker, and record on the Yield Breakdown form, along with an
explanation of the reject.

	7.2
	Individual
Die Numbering

	

	Note:
Numbering is currently being done on live (and process dummy) ATV, SXGA, and XGA parts. APIX numbering is performed per the XY grid numbering system
supplied by HP. Reference APIX wafer map. Numbering is not being done on VGA parts, or any experimental parts (unless otherwise requested).

	7.2.1
	Each
die from the laminate will be numbered to maintain traceability throughout the process.

	7.2.2
	Beginning
with the upper left-hand die, number the die sequentially, finishing at the lower right hand part of the wafer (wafer positioned with the flat down).

	7.2.3
	Use
a black sharpie pen to place the number on each die. Place number in lower left corner of window.

	7.3
	Physical
QC inspections performed after singulation.

	7.3.1
	Delaminated
Glue Line Inspection: Performed using green light.

	

	Any
die on which any part of its glue line has delamination is rejected.

	

	Mark
the window of any die failing the delaminated glue line inspection with the letter "D" using a black sharpie marker, and record on the Yield Breakdown
form. 

4

 

	7.3.2
	Scribe
Inspection: Performed using magnification.

	

	Any
die that has a scribe that breaks the apron skirt boundary, or a scribe that cuts into any bond pads is rejected. Any glass scribe that is not aligned
with the window target lines on the silicon is rejected.

	

	Mark
the window of any die failing the scribe inspection with the letter "S" using a black sharpie marker, and record on the Yield Breakdown form.

	7.3.3
	Break
Inspection: Performed using magnification.

	

	Any
die that has a break that cuts into the apron skirt boundary or any bond pads, a break that does not follow the scribe line or leaves edge flares of
more than 180 microns is rejected.

	

	Mark
the window of any die failing the break inspection with the letter "B" using a black sharpie marker, and record on the Yield Breakdown form.

	7.3.4
	Window
Scratch Inspection: Performed using magnification.

	

	Any
die with a visible scratch is rejected

	

	Mark
the window of any die failing the window scratch inspection with the letter "W" using a black sharpie marker, and record on the Yield Breakdown form.

	7.3.5
	Glue
Tip Inspection: Performed using magnification.

	

	Any
die on which the glue tips do not extend to the edge of the silicon is rejected.

	

	Cells
that have glue tips that do not extend to the silicon edge due to circuit topography are not rejected.

	

	Mark
the window of any die failing the glue tip inspection with the letter "T" using a black sharpie marker, and record on the Yield Breakdown form.

	7.3.6
	Other
Rejects:

	

	Mark
the window of any die with any other reject with the letter "O" using a black sharpie marker, and record on the Yield Breakdown form, along with an
explanation of the reject.

	8.0
	PROCESS
SHUTDOWN

	8.1
	Return
wafer to storage bag with job traveler

	8.2
	Turn
off all equipment

	8.3
	Clean
area

	8.3.1
	Seal
and return all chemicals to proper storage areas

	8.3.2
	Clean
and store all tools and materials

	8.3.3
	Wipe
area surfaces with IPA

	8.3.4
	Wipe
area with clean dry wipes 

5

 

	8.3.5
	Dispose
of garbage properly

	8.4
	Fill
out Job Traveler/Process Sheet

	9.0
	PROBLEM
SOLVING/TROUBLESHOOTING

	9.1
	Particles
Inspection:

	9.1.1
	Particles
or substrate protrusions larger than the nominal cell gap between silicon and glass can cause spacing problems in the cell (i.e. the cell gap varies from nominal around
the particle). This causes interference fringes around the particle that look similar to ripples around a disturbance in a pond. Sometimes the particle can be seen in the middle of the fringe circles,
but not always.

	9.2
	Glue
line Inspection:

	9.2.1
	Glue
Covering Pixels:

	9.2.1.1
	The
glue line should not cover any portion of the pixilated active area. Failures could result from poorly registered glue, fat glue lines, glue that seeped from the glue line, or
any reason that causes the glue to cover the pixels.

	9.2.2
	Continuous
Glue Line:

	9.2.2.1
	The
glue line should be continuous and have no breaks other than the fill hole. Air bubbles in the glue line are acceptable as long as they do not make a path for the liquid
crystal to cross the glue line. Refer to Figure 1 for examples of an incomplete glue line. 

 Figure 1  

  

Glue
line must not have any path—except the fill hole—from the inside to the outside of the cell. 

6

 

	9.3
	Window
Scratch:

	9.3.1
	A
window scratch is a visible scratch that is located over the pixilated area of the display. The scratch can either be on the top surface of the window glass, the top surface of
the pixilated silicon, or the bottom surface of the glass just above the silicon and liquid crystal. Scratches are usually caused by process or handling problems.

	9.4
	Delaminated
Glue Line Inspection:

	9.4.1
	Glue
line delamination occurs when the bond between the glue and either the silicon or glass fails. It appears similar to a particle when viewed under a green light except that the
dark bands surround the delaminated portion of the glue line. Jagged line formations inside the glue line or color fringes that are parallel to the glue line are evidence that glue line delamination
has occurred. Refer to Figure 1 for examples of delaminated glue lines.

	9.5
	Scribe
Inspection:

	9.5.1
	Scribe
failures pertain to the actual scribe placement and quality. Typically, scribe failures will affect entire rows or entire wafers. Scribe failures include wrong pressure or
penetration settings on the machine, using the wrong scribe wheel or program, misalignment of the laminate during scribe, or any scribe line that cuts off circuitry of the cell. Circuitry consists of
the active area, the apron, and the bond pads.

	9.6
	Break
Inspection:

	9.6.1
	Break
failures pertain to the actual break quality of the scribe. Typically break failures affect individual die or entire rows. Break failures include any breaks that do not follow
the scribe line, breaks that wander into and disrupt circuitry or glass edges that flare. Flared edges can be measured on the incoming QC microscope.

	9.7
	Glue
Tip Inspection:

	9.7.1
	The
glue tips must extend to the edge of the silicon to facilitate proper filling of the liquid crystal. Causes for the glue tips not extending to the edge of the silicon include
glue stamp registration error, scribe placement error, or breaks that travel around the end of the glue rather than cut across the glue.

	9.8
	Display
Area Contamination Inspection:

	9.8.1
	Particles
and other contamination that is less than 1 micron will not cause color bands to show up in the Particle Inspection. This contamination could be glass defects, polyimide,
glue, or materials that get trapped in the cell during lamination. The contamination must block the pixels from view to be rejected. 

7

  

	Laminate #
 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

	 	Yield Breakdown Form

	Serial #:
 

	 	Total
	 	1
	 	2
	 	3
	 	4
	 	5
	 	6
	 	7
	 	8
	 	9
	 	10
	 	11
	 	12
	 	13
	 	14
	 	15
	 	16
	 	17
	 	18
	 	19
	 	20
	 	21
	 	22
	 	23
	 	24
	 	25

	Particles	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Glue in pixels	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Glue breaks	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scratch	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contamination	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other (note)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Delamination	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bad scribe	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bad break	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scratch	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Glue tips	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other (note)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Incomplete fill	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Die Attach	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Wirebond bad	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Electrical	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Visual:

Non-uniform Spacing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Apron Problem	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pixels Out	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Color bands	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Chord ZZ	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Aperture ZZ	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pressure	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lint	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Feathering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scratch	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bad fill	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contamination	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Circle defect	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other (note)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final: Electrical	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Surface quality	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Alignment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Spacing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	___ses QC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

8

 

	Laminate #
 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

	 	Yield Breakdown Form

	Serial #:
 

	 	26
	 	27
	 	28
	 	29
	 	30
	 	31
	 	32
	 	33
	 	34
	 	35
	 	36
	 	37
	 	38
	 	39
	 	40
	 	41
	 	42
	 	43
	 	44
	 	45
	 	46
	 	47
	 	48
	 	49
	 	50

	Particles	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Glue in pixels	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Glue breaks	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scratch	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other (note)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Delamination	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bad scribe	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bad break	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scratch	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Glue tips	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other (note)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Incomplete fill	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Die Attach	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Wirebond bad	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Electrical	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Visual:

Non-uniform Spacing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Apron Problem	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pixels Out	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Color bands	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Chord ZZ	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Aperture ZZ	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pressure	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lint	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Feathering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scratch	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bad fill	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contamination	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Circle defect	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other (note)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final: Electrical	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Surface quality	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Alignment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Spacing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	___ses QC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

9

 

	Key Metrics
 

	S/N
 
	 	dark
	 	off
	 	on
	 	Angle 1
	 	Angle 2
	 	rise time
	 	fall time

	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 

10

  

	 TITLE: LCQC	 	SPECIFICATION NUMBER:

QASR-02600	 	 	 	REVISION

1
	

	DISPLAYTECH PROPRIETARY INFORMATION
	

	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12
	1	 	1	 	1	 	1	 	1	 	1	 	1	 	 	 	 	 	 	 	 	 	 
	

	13	 	14	 	15	 	16	 	17	 	18	 	19	 	20	 	21	 	22	 	23	 	24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	25	 	26	 	27	 	28	 	29	 	30	 	31	 	32	 	33	 	34	 	35	 	36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	
REVISION
	
 	

DATE
	
 	

DESCRIPTION
 

	1	 	10/98	 	Remove definitions from section 7 and add to section 9, change pixels out from 5 to 3, no two Adjacent, change from black state texture/problems allow to not allowed.

	

	OWNER

RICK MILLER	 	PRODUCT ASSURANCE
	

	PROCESS ENGINEERING MANAGER	 	FACILITIES/MAINTENANCE
	

	PRODUCTION MANAGER	 	PRIMARY TECHNICIAN
	

CONFIDENTIAL

1

 
	1.0
	PURPOSE

	

	To
provide a procedure of qualifying the liquid crystal characteristics of live die, under selected driving conditions.

	2.0
	SCOPE

	

	This
document covers inspection procedures and criteria for the determination of liquid crystal optical qualities of live, driven die.

	3.0
	APPLICABLE
DOCUMENTS

	3.1
	MSDS
for IPA (isopropyl alcohol)

	3.2
	Job
Traveler

	3.3
	QA
sheet from QASR-03300, Physical QC

	4.0
	EQUIPMENT
& MATERIALS

	4.1
	Equipment

Microscope, 50X

Viewing Module

Specific Drivers

	4.2
	Chemicals

IPA (isopropyl alcohol)

	4.3
	Materials

Cotton swabs

	4.4
	Tools

Not applicable

	5.0
	GENERAL/SAFETY
REQUIREMENTS 

        5.1   Due
to the potential hazards to untrained personnel, there should be no attempt to execute the following procedure by "unqualified personnel", nor be assisted by such
personnel unless following a formal orientation procedure. 

        5.2   Gloves
shall be worn at all times when handling die. Chemical resistant gloves shall be worn whenever handling chemicals. 

        5.3   Process
Specific Requirements 

        5.3.1 Only
one open lot at each inspection station at a time. 

        5.3.2 Job
traveler must be completed and all die properly stored before beginning the next lot. 

2

 

	6.0
	PROCESS
SETUP 

        6.1   Clean/Prepare
area. Remove any unnecessary items from work area. 

        6.2   Setup/Verify
Equipment 

        6.2.1 Driver
should be OFF. 

        6.2.2 CDK
cable should connect driver board to the FR-4 board such that the cable comes straight off each board without crossing the connector or the board. 

        6.2.3 All
of the DIP switches on the driver board should be OFF except 1, which does not matter, and 8, which should be ON. 

        6.2.4 Driver
should be plugged in. 

        6.3   ESD
Grounding 

         When
handling live die, proper ESD methods will be followed at all times. 

        6.4   Obtain
the QA sheet from QASR-03300, Physical QC. All yields will be reported on this sheet. 

	7.0
	PROCEDURE 

        7.1   Set
up Panel to be inspected. 

        7.1.1 If
die wires are not exposed (the die is packaged), clean the exposed surface of the window using a cotton swab wetted with isopropyl alcohol, rolling and wiping until
all surface contaminants have been removed. 

        7.1.2 Check
the driver to insure that it is off. 

        7.1.3 Plug
the flex lead tab of a VGA packaged die into ZIF connector on the FR-4 board, pushing the flex to the back of the ZIF socket and inserting it such that the
display side of the flex faces the FR-4 board. 

        7.1.4 Squeeze
the ZIF connector slider shut, trapping the flex tab in the socket. 

        7.1.5 Gently
place the flex assembly under the viewer or microscope. 

        7.1.6 Turn
the driver on. 

        7.2   Check
first for obvious electrical problems in the current state. Switch the image of the display from Black to White and check again for electrical problems. 

        7.2.1 Any
display with no electrical problems is then judged for general display qualities. The explanations and probable causes for problems are listed in Section 9. 

        7.2.2 Rate
the display using the definitions and defect limits for ratings explanations and marking the results on the Display Rating
Chart, the last page of this document. 

3

 

        7.3   Reject
Categories 

        7.3.1 Electrical
problems: column out, column group out, chip short, scrolling pattern, starfield, gray apron, gray active area, will not change state: 

         Any
die on which any of these electrical problems are present is rejected. 

        7.3.2 Pixel
out: Any electrical problem or debris that causes any pixel to not appear to switch will be considered a pixel out. This includes hillocks, point defect/light
leakage and contaminating particles. 

         Any
die with more than 3 pixels out, no two pixels adjacent will be rejected. 

        7.3.3 Black
State: Color fringes, zigzag, feathering or texture, pressure defect, wandering null, hillocks, point defect/light leakage, circle defect, or focal conic, lint. 

         Any
die with any of these defects is rated in the following manner. 

	Good: Any die with no indication of a problem.	 	Do not mark on the sheet
	Pass: Any die with a minor problem.	 	Mark on sheet with a "P"
	Fail: Any die with a major problem	 	Checkmark box or mark with an "X"

        7.3.4 White
State: Scratch, contamination. Die with scratches visible to the eye, covering two pixels or more is rejected or any die on which has a non-removable
contamination is rejected if it covers 1 pixel or more is rejected. 

         Any
die with any of these defects is rated in the following manner: 

	Good: Any die with no indication of a problem.	 	Do not mark on the sheet
	Pass: Any die with a minor problem.	 	Mark on sheet with a "P"
	Fail: Any die with a major problem	 	Checkmark box or mark with an "X"

        7.3.5 Contrast:
No panels are rejected for poor contrast until they are measured in a display engine. When measured in a display engine, any parts with contrast below 200:1
will be rejected. 

	8.0
	PROCESS
SHUTDOWN 

        8.1   Turn
off the driver. 

        8.2   Release
the flex from the ZIF socket and repeat process with another die until entire lot has been viewed. 

        8.3   Return
wafer to storage bag with job traveler. 

        8.4   Turn
off all equipment 

        8.5   Clean
area 

        8.5.1 Seal
and return all chemicals to proper storage areas 

        8.5.2 Clean
and store all tools and materials 

        8.5.3 Wipe
area surfaces with IPA 

4

 

        8.5.4 Wipe
area with clean dry wipes 

        8.5.5 Dispose
of garbage properly 

        8.6   Fill
out Job Traveler/QA Sheet 

	9.0
	PROBLEM
SOLVING/TROUBLESHOOTING 

Defect
Definitions/Potential Causes 

        9.1   Particles:
As viewed with the Chiron viewer for VGA, with the microscope for all other parts. Any die that contains material obscuring and area of one or more pixels
that does not affect uniformity. 

        9.2   Column
group out: One or more adjacent columns will not switch with the balance of the columns. Chip problem, can be caused by a short in the chip, shorting a pixel to
ground or to supply voltage. 

        9.3   Short:
The driver will buzz lightly and the chip and/or flex will get hot. Sometimes the chip will fade in a wave from one side to the other several seconds after being
driven. Usually chip or wire bond problem, although it can be a flex problem (also see Pixel Out). 

        9.4   Pixel
out: As viewed with the Chiron viewer for VGA, with microscope for all others. A pixel or group of pixels will not switch with the balance of the pixels. Usually
pixels are out due to a wafer problem (pit or particle), but could be electrical trace problems in the silicon. 

        9.5   Scrolling
checkerboard pattern: When any non-solid pattern (such as the checkerboard pattern) appear on the screen, they scroll, rather than remain in place. Chip or
flex problem. 

        9.6   Starfield:
Chip will not switch to white state when driven and instead displays a black state with a white random pattern of pixels in the white state. No clock line.
Could be a flex or a wire bond problem. 

        9.7   Gray
apron: The apron will not get as black as the active area. Apron not connected. 

        9.8   Gray
active area: The active area will not get black, but instead remain somewhat gray. Open circuit in chip. 

        9.9   Will
not change state: Display will always remain all white or all black, but will not switch to the other state. Flex, chip, or wire bond problem. 

        9.10 Fill
rings: Seen in black state. Alternating band of relatively light and dark bands that seem to emanate from the fill hole like ripples from a disturbance in a pond.
In general, seen after encapsulation. 

        9.11 Color
fringes: Seen in black state between crossed polarizers. Bands or areas of colors across the display. Although color fringes are a symptom of uneven stress
between wafer and glass, actual causes can vary from uneven spacer ball densities across the chip, glue pulling or pushing between the laminate layers, particles between the layers, non-planer
laminate layers, or other unknown mechanisms. 

        9.12 Spacing
non uniformity: Seen in the black state with parallel polarizers. An area that is different in height than the remainder of the display will appear a different
color. These will usually appear as a "bulls-eye" pattern. If the display is viewed between parallel polarizers and rotated correctly, the spacing problem will show up as a change in the gray shade of
the display (rather than a change in color). 

5

 

        9.13 Feathering
or texture: Seen near the black state. Texturing that changes shades as the part is rotated near the black state. Pattern looks like bird feather layering,
aligned in the direction of the buff. Most likely a polyimide or buff problem. 

        9.14 Streaks:
Streaks running parallel with the buff. These streaks appear quite smooth and uniform, like small ridges on the wafer. Unknown, but possibly caused by
contamination in alignment layer. 

        9.15 Poor
contrast: One or both of the states is not very "extreme" (and instead tends toward the gray state). No panels are rejected for poor contrast until they are
measured in a display engine. When measured in a display engine, any parts with contrast below 200:1 will be rejected. 

        9.16 Wandering
null: The entire display cannot be in its darkest state at the same angle (of the display with respect to the polarizers). As the display is rotated, the
darkest part of the display will move across the display, leaving behind an area that is no longer as dark as possible. Cause unknown, most likely an alignment layer, buff, or LC problem. 

        9.17 Hillocks:
Seen as small pocket of light leakage. A crystalline growth, or particle on the wafer, usually later trapped by the Metal 3, this is a wafer problem. 

        9.18 Zigzags,
active area: Best seen near the black state, as extinction angle for each domain is slightly different, causing one domain to be off-black while the other is
black. LC domain boundaries that lie perpendicular to the buff. Usually the side nearest to the fill hole is fairly straight, while the side opposite the fill hole is quite jagged. Chord zigzags tend
to anchor on the cell boundary (i.e. a glue line) and usually start from a discontinuity in the boundary (i.e. a notch in the glue line). Usually they are fairly short, tending to stay in the corners,
but can occasionally form across the active area if they can find two anchor points that allow them to set up perpendicular to the buff. Differential cooling the UV cure fixture is the usual cause. 

        9.19 Zigzags,
aperture: Best seen near the black state, as extinction angle for each domain is slightly different, causing one domain to be off-black while the other is
black. Seen under microscope only. LC domain boundaries that are not chord zigzag and appear within the aperture. Usually they are of varying size and concentration; sometimes they are a relatively
large area, other times they are a scattering of little slivers that run parallel with the buff. Cause unknown. 

        9.20 Scratch,
window or top AR coating: Scratch on the top of the window, seen with 40X microscope. Process or handling problem. 

        9.21 Window
blob, misc.: Some particle, epoxy, or other goober on top of the window. Usually a process problem. 

        9.22 Point
defect/Light leakage: An area in the black state that is not black. Occasionally focal conic or other problems can cause a pocket of light inside the glue line,
but should be categorized under the appropriate problem and not as light leakage. Could also be light reflecting off a glass scratch, spacer ball clump or a chip problem. Viewed from an angle normal
to the center point of the display. 

        9.23 Pressure
defect: A disruption in the LC alignment appearing as a mottled or gray area that can have many appearances. In mild cases, the mottling is barely noticeable
and appears as a mild bruise. In more severe cases (such as being dropped or whacked), zigzags, voids, discontinuities, pixilated three-tone patterns, and other severe texturing can form in the
shocked area. Process or handling problem. 

        9.24 Partial
LC fill: The entire cell will not be filled with LC; some pocket will remain with no LC. This pocket will not be birefringent, always appearing black between
crossed polarizers. LC fill process problem. 

6

 

        9.25 Focal
conic: An LC contamination problem or non-aligning LC that appears as a pocket of crystal cell grains, a stained glass look. Usually the glue was not entirely
cured when the cell was filled with LC. 

        9.26 Circle
defect: Usually best seen in the near black state, but sometimes seen well with the near white state. A somewhat small circle, halo, ellipse, or comet-shaped
pattern. When the polyimid is spun onto a wafer or glass, a bubble can form in the polyimid, or something can interrupt the spread of the liquid (i.e. a particle). Spin coat process problem or
possibly a liquid drying stain. 

        9.27 Lint:
Small streaks or blobs of light in the dark state that are random in nature. Generally caused by spacer ball clumps or small liquid crystal defects near spacer
balls. 

        9.28 Contamination:
And area of discoloration or fading in a localized area of the cell, usually near the fill hole. Encapsulant or other foreign material leas in through an
incomplete perimeter seal. 

7

  

	 TITLE: Panel QA

                    TCO 98031	 	SPECIFICATION NUMBER:

QASR-03500	 	 	 	REVISION

Original
	

	DISPLAYTECH PROPRIETARY INFORMATION
	

	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	13	 	14	 	15	 	16	 	17	 	18	 	19	 	20	 	21	 	22	 	23	 	24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	25	 	26	 	27	 	28	 	29	 	30	 	31	 	32	 	33	 	34	 	35	 	36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	
REVISION
	
 	

DATE
	
 	

DESCRIPTION
 

	 	 	 	 	 

	

	ORIGINATOR	 	PRODUCT ASSURANCE
	

	PROCESS ENGINEERING MANAGER	 	FACILITIES/MAINTENANCE
	

	MANUFACTURING MANAGER	 	PRIMARY TECHNICIAN
	

CONFIDENTIAL MATERIAL

Displaytech, Inc.

1

 
	1.0
	PURPOSE

To
provide an operating procedure for final inspection of Projection Panel devices. 

	2.0
	SCOPE 

This
document covers operation and material handling procedure necessary for manufacture of Projector Panel devices. 

	3.0
	APPLICABLE
DOCUMENTS

	3.1
	MSDS
for chemicals used in process.

	3.2
	Clean
room operation specification.

	3.3
	Visual
QC Yield Breakdown Sheet

	4.0
	EQUIPMENT
AND MATERIALS

	4.1
	Equipment

Stand (to hold driver)

Square Stage on Microscope

Photodetector w/ Power Supply

Microscope Olympus BH2-UMA w/ DC light source

IR Filter

UV Filter

Panel driver

HP Power Supply 3610A

Oscilloscope TDS 340A

	4.2
	Chemicals

IPA

Acetone

	4.3
	Materials

Tape

Glass slide

Serial Number Sheet

Sharpie

Q-tip

Lens Tissue

	4.4
	Tools

Not applicable

	5.0
	GENERAL/SAFETY
REQUIREMENTS

	5.1
	Due
to the potential hazards to untrained personnel there should be no attempt to operate the system unless a complete orientation has been given by qualified personnel.

	5.2
	Safety
glasses shall be worn at all times. 

2

 

	5.3
	Chemical
resistant gloves shall be worn when handling any chemical or devices.

	5.4
	ESD
protections shall be worn when handling any live parts.

	6.0
	PROCESS
SET UP

	6.1
	Clean/Prepare
area

	6.2
	Oscilloscope
Setup

	6.3.1
	Attach
photodetector to input 1.

	6.3.2
	Set
up measurements to max, min, rise time and fall time.

	6.3
	Power
Supply for Light Source

	6.3.3
	Set
to 6.0 V

	6.4
	Microscope
and Photodetector.

	6.4.1
	Remove
camera from the top of microscope and attach photodetector.

	6.4.2
	Insert
IR and UV filters into microscope light source.

	6.4.3
	Remove
X-Y stage.

	6.4.4
	Mount
vernier rotating stage onto system.

	6.4.5
	Set
microscope to use 5X objective.

	6.4.6
	Set
Polarizers on Microscope to cross.

	6.4.7
	Determine
black state noise by closing camera shutter on microscope and taking reading on oscilliscope.

	Note:
	Reading
should be less than 10 mV.

	6.5
	Pattern
Generator Board.

	6.5.1
	Set
DIP switches for fast switching speed and part type.

	7.0
	PROCEDURE

	7.1
	Put
Panel in System

	7.1.1
	Attach
panel connector to driver cable.

	7.1.2
	Place
in center of the rotating stage.

	7.1.3
	Hold
in place with tape. 

3

 

	7.1.4
	Connect
driver board to power supply and set to 5V.

	7.2
	Perform
a Visual Inspection

	7.2.1
	Check
first for obvious electrical problems in the current state. Switch the image of the display from Black to White and check again for electrical problems.

	7.2.1.1
	Any
display with no electrical problems is then judged for general display qualities. The explanations and probable causes for problems are listed in Section 9.

	7.2.2.2
	Rate
the display using the definitions and defect limits for ratings explanations and marking the results on the Physical QC Inspection
Sheet.

	7.2.2
	Reject
Categories

	7.3.1.1
	Electrical:
column out, column group out, chip short, scrolling pattern, star field, gray apron, gray active area, will not change state:

	

	Any
die on which any of these electrical problems are present is rejected.

	7.3.1.2
	Surface
Quality: Scratch, contamination. Die with scratches visible to the eye, covering two pixels or more, a non-removable contamination is rejected if it covers more than three
pixels with no two adjacent.

	

	Any
die with these defects is rejected.

	7.3.1.3
	Alignment
Quality: Color fringes, zigzag, feathering or texture, pressure defect, wandering null, hillocks, point defect/light leakage, circle defect, or focal conic, lint.

	

	Any
die with any of these defects is rejected.

	7.3.1.4
	Spacing:
any die with yellowing in a portion of the white state.

	

	Any
die with this defect is rejected.

	7.3
	Contrast
Ratio Measurement

	7.3.1
	Rotate
cell until black state reaches minimum value on the 10 mV scale.

	7.3.2
	Record
measurement

	7.3.3
	Change
scale to read Max value on the 500 mV scale.

	7.3.4
	Record
Value.

	7.3.5
	Calculate
contrast ratio using following formula or enter into spreadsheet. 

	Contrast =	 	Max-Black State

Min-Black State	 	 

4

 

	

	Reject
any cell with contrast less than 200.

	7.4
	Switching
Speed Measurement

	7.4.1
	Record
rise and fall times from digital microscope.

	

	Reject
any die with a rise or fall time greater than 300 μs.

	7.5
	Tilt
Angle Measurement

	7.5.1
	Note
current angle on microscope stage.

	7.5.2
	Move
clockwise until maximum value recorded in 7.2.3 is shown.

	7.5.3
	Record
new angle.

	7.5.4
	Calculate
Tilt Angle using following formula or enter into spread sheet.

	

	Tilt
Angle = New Angle - Original angle

	

	Reject
any cell with tilt angle less than 20°.

	8.0
	PROCESS
SHUTDOWN

	8.1
	Switch
camera back onto microscope.

	8.2
	Turn
off all equipment.

	8.3
	Replace
stage set up as it was when started.

	9.0
	Defect
Definitions/Potential Causes

	9.1
	Particles:
As viewed with the Chiron viewer for VGA, with the microscope for all other parts. Any die that contains material obscuring and area of one or more pixels that does not
affect uniformity.

	9.2
	Column
group out: One or more adjacent columns will not switch with the balance of the columns. Chip problem, can be caused by a short in the chip, shorting a pixel to ground or to
supply voltage.

	9.3
	Short:
The driver will buzz lightly and the chip and/or flex will get hot. Sometimes the chip will fade in a wave from one side to the other several seconds after being driven.
Usually chip or wire bond problem, although it can be a flex problem (also see Pixel Out).

	9.4
	Pixel
out: as viewed with the Chiron viewer for VGA, with microscope for all others. A pixel or group of pixels will not switch with the balance of the pixels. Usually pixels are out
due to a wafer problem (pit or particle), but could be electrical trace problems in the silicon.

	9.5
	Scrolling
checkerboard pattern: When any non-solid pattern (such as the checkerboard pattern) appear on the screen, they scroll, rather than remain in place. Chip or flex problem. 

5

 

	9.6
	Starfield:
Chip will not switch to white state when driven and instead displays a black state with a white random pattern of pixels in the white state. No clock line. Could be a flex
or a wire bond problem.

	9.7
	Gray
apron: The apron will not get as black as the active area. Apron not connected.

	9.8
	Gray
active area: The active area will not get black, but instead remain somewhat gray. Open circuit in chip.

	9.9
	Will
not change state: Display will always remain all white or all black, but will not switch to the other state. Flex, chip or wire bond problem.

	9.10
	Fill
rings: Seen in black state. Alternating band of relatively light and dark bands that seem to emanate from the fill hole like ripples from a disturbance in a pond. In general,
seen after encapsulation.

	9.11
	Color
fringes: Seen in black state between crossed polarizers. Bands or areas of colors across the display. Although color fringes are a symptom of uneven stress between wafer and
glass, actual causes can vary from uneven spacer ball densities across the chip, glue pulling or pushing between the laminate layers, particles between the layers, non-planer laminate layers, or other
unknown mechanisms.

	9.12
	Spacing
non uniformity: Seen in the black state with parallel polarizers. An area that is different in height than the remainder of the display will appear a different color. These
will usually appear as a "bulls-eye" pattern. If the display is viewed between parallel polarizers and rotated correctly, the spacing problem will show up as a change in the gray shade of
the display (rather than a change in color).

	9.13
	Feathering
or texture: Seen near the black state. Texturing that changes shades as the part is rotated near the black state. Pattern looks like bird feather layering, aligned in the
direction of the buff. Most likely a polyimide or buff problem.

	9.14
	Streaks:
Streaks running parallel with the buff. These streaks appear quite smooth and uniform, like small ridges on the wafer. Unknown, but possibly caused by contamination in
alignment layer.

	9.15
	Poor
contrast: One or both of the states is not very "extreme" (and instead tends toward the gray state). No panels are rejected for poor contrast until they are measured in a
display engine. When measured in a display engine, any parts with contrast below 200:1 will be rejected.

	9.16
	Wandering
null: The entire display cannot be in its darkest state at the same angle (of the display with respect to the polarizers). As the display is rotated, the darkest part of
the display will move across the display, leaving behind an area that is no longer as dark as possible. Cause unknown, most likely an alignment layer, buff, or LC problem.

	9.17
	Hillocks:
Seen as small pocket of light leakage. A crystalline growth, or particle on the wafer, usually later trapped by the Metal 3, this is a wafer problem.

	9.18
	Zigzags,
active area: Best seen near the black state, as extinction angle for each domain is slightly different, causing one domain to be off-black while the other is black. LC
domain boundaries that lie perpendicular to the buff. Usually the side nearest to the fill hole is fairly straight, while the side opposite the fill hole is quite jagged. Chord zigzags tend to anchor
on the cell boundary (i.e. a glue line) and usually start from a discontinuity in the boundary (i.e. a notch in the glue line). Usually they are fairly short, tending to stay in the corners, but can
occasionally form across the 

6

 

active
area if they can find two anchor points that allow them to set up perpendicular to the buff. Differential cooling the UV cure fixture is the usual cause. 

	9.19
	Zigzags,
aperture: Best seen near the black state, as extinction angle for each domain is slightly different, causing one domain to be off-black while the other is black. Seen under
microscope only. LC domain boundaries that are not chord zigzag and appear within the aperture. Usually they are of varying size and concentration; sometimes they are a relatively large area, other
times they are a scattering of little slivers that run parallel with the buff. Cause unknown.

	9.20
	Scratch,
window or top AR coating: Scratch on the top of the window, seen with 40X microscope. Process or handling problem.

	9.21
	Window
blob, misc.: Some particle, epoxy, or other goober on the top of the window. Usually a process problem.

	9.22
	Point
defect/Light leakage: An area in the black state that is not black. Occasionally focal conic or other problems can cause a pocket of light inside the glue line, but should be
categorized under the appropriate problem and not as light leakage. Could also be light reflecting off a glass scratch, spacer ball clump or a chip problem. Viewed from an angle normal to the center
point of the display.

	9.23
	Pressure
defect: A disruption in the LC alignment appearing as a mottled or gray area that can have many appearances. In mild cases, the mottling is barely noticeable and appears as
a mild bruise. In more severe cases (such as being dropped or whacked), zigzags, voids, discontinuities, pixilated three-tone patterns, and other severe texturing can form in the shocked area. Process
or handling problem.

	9.24
	Partial
LC fill: The entire cell will not be filled with LC; some pocket will remain with no LC. This pocket will not be birefringent, always appearing black between crossed
polarizers. LC fill process problem.

	9.25
	Focal
conic: An LC contamination problem or non-aligning LC that appears as a pocket of crystal cell grains, a stained glass look. Usually the glue was not entirely cured when the
cell was filled with LC.

	9.26
	Circle
defect: Usually best seen in the near black state, but sometimes seen well with the near white state. A somewhat small circle, halo, ellipse, or comet-shaped pattern. When the
polyimid is spun onto a wafer or glass, a bubble can form in the polyimid, or something can interrupt the spread of the liquid (i.e. a particle). Spin coat process problem or possibly a liquid drying
stain.

	9.27
	Lint:
Small streaks or blobs of light in the dark state that are random in nature. Generally caused by spacer ball clumps or small liquid crystal defects near spacer balls.

	9.28
	Contamination:
And area of discoloration or fading in a localized area of the cell, usually near the fill hole. Encapsulant or other foreign material leas in through an incomplete
perimeter seal. 

7

 

Fig. 1:
Connection Diagram 

  

8

Schedule 7.1  

 (Attached to and Part of the

Manufacturing Agreement

Between

Miyota Co., Ltd. and Displaytech, Inc.

Dated December 10, 1998)  

 Price

Date: February 5, 1999 

        The
formula(s) for determining the price for the Products manufactured under the Manufacturing Agreement is (are) set forth in the following document, which is incorporated into and made
a part of the Manufacturing Agreement by reference thereto: 

	1.	 	Document Title:	 	Price
	 	 	Document No.:	 	REFM04009
	 	 	Document Date	 	February 5, 1999

	MIYOTA CO., LTD.	 	DISPLAYTECH, INC.
	

By:	
 	

/s/  YORITAKE OYA      
	
 	

By:	
 	

/s/  HAVILAND WRIGHT      

	Name:	 	Yoritake Oya
	 	Name:	 	Haviland Wright

[LETTERHEAD]

PRICE

REFM-04009

DATE: 2/5/99 

ATTACHED DOCUMENTS WITHIN:  

	DOCUMENT NO./TITLE
 
	 	REVISION
	 	DATE

	PRICE DEFINITION	 	Original	 	01/99
	DISPLAYTECH PRICE FORMULA	 	Original	 	01/99
	MIYOTA PRICE FORMULA	 	Original	 	01/99
	DEPRECIATION FORMULA	 	Original	 	01/99

DISPLAYTECH SIGNATURE AND DATE  

	Project Leader:	 	/s/ [ILLEGIBLE] 2/2/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/2/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/2/99

MIYOTA SIGNATURE AND DATE  

	Process Engineer Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Manufacturing Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	Quality Manager:	 	/s/ [ILLEGIBLE] 2/5/99

	VP Operations:	 	/s/ [ILLEGIBLE] 2/5/99

QuickLinks

MANUFACTURING AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 10.22.1  

 
  AMENDMENT
  NO. 1    
    

        This agreement ("Amendment") dated Mar. 25, 1999, is entered into by and between Displaytech, Inc., a corporation organized and existing under the
laws of the State of Colorado in the United States of America, with its principal place of business located at 2602 Clover Basin Drive, Longmont, CO 80503 U.S.A. ("DT"), and Miyota Co., Ltd.,
established and existing under the laws of Japan, with its registered office located at 4107-5 Miyota-machi, Kitasaku-gun, Nagano-ken, 389-0294 Japan
("MYT" along with DT a "Party", and together the "Parties"). This Amendment amends that certain Manufacturing Agreement dated December 10, 1999 entered into by the Parties as follows: 

	1.
	Third "Whereas" Clause.    Page 1, lines 4 and 5. The phrase "... which
performance of MYT manufacturing services is for, upon the order of or on behalf of DT..," is changed to "... which performance of MYT manufacturing services is for or upon the order of DT.... "

	2.
	Section 2.1.    Page 3, lines 1 and 2. The phrase "...MYT will
manufacture Products for, upon the order of or on behalf of DT..," is changed to "... MYT will manufacture Products for or upon the order of DT.... "

	3.
	Section 2.4.    Page 3, line 2. The word "development" is deleted and
replaced with the word "design".

	4.
	Section 2.6.    Page 4, line 2. The words "on behalf of" are deleted.

	5.
	Section 3.4.    Page 5, line 4. The words "or on behalf of" are
deleted.

	6.
	Section 6.8.    Page 11. Section 6.8 is deleted in its entirety
and replaced with the following section:

	6.8
	Shipment Terms, Title and Risk of Loss.    Finished Products delivered outside Japan shall be shipped from MYT's Nagano plant
FOB destination. Payment of the price for the Finished Products shall be as provided in Section 7.2 hereof. Shipment of Finished Products sold and delivered inside Japan will be FOB Nagano, and
title and risk of loss shall pass to DT when MYT delivers the Finished Products to a carrier for shipment in Japan to DT or its designated customer.

	7.
	Section 11.3.    Page 14, lines 3. The words "or on behalf" are
deleted.

	8.
	Section 13.1.2.    Page 16, line 4. The words "on behalf of DT" are
deleted. 

Except
as modified hereby, the Agreement shall remain in full force and effect. The Parties agree that the changes set forth in this Amendment will be implemented by replacing the affected pages in
the Agreement with new pages that incorporate the changes. 

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

	
MIYOTA CO., LTD.	
 	
DISPLAYTECH, INC.
	

By:	

/s/  YORITAKE OYA      
	
 	

By:	

/s/  HAVILAND WRIGHT      

	

Name:	

Yoritake Oya
	
 	

Name:	

Haviland Wright

	

Title:	
Managing Director
	
 	

Title:	
C.E.O.

1

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AMENDMENT NO. 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]