Document:

<PAGE>   1
                                                                     EXHIBIT 4.2

                           AMENDED AND RESTATED BYLAWS

<PAGE>   2
                              AMENDED AND RESTATED

                                     BYLAWS

                                       OF

                                  VIALTA, INC.

<PAGE>   3
                           AMENDED AND RESTATED BYLAWS
                                       OF
                                  VIALTA, INC.

Article 1. Stockholders

         1.1 Place of Meetings. All meetings of stockholders shall be held at
such place within or without the State of Delaware as may be designated from
time to time by the Board of Directors or the President and Chief Executive
Officer or, if not so designated, at the registered office of the corporation.

         1.2 Annual Meeting. The annual meeting of stockholders for the election
of directors and for the transaction of such other business as may properly be
brought before the meeting shall be held on a date to be fixed by the Board of
Directors or the President and Chief Executive Officer at the time and place to
be fixed by the Board of Directors or the President and stated in the notice of
the meeting. If no annual meeting is held in accordance with the foregoing
provisions, the Board of Directors shall cause the meeting to be held as soon
thereafter as convenient.

         1.3 Special Meetings. Special meetings of stockholders of the
corporation may be called only by the Board of Directors pursuant to a
resolution adopted by a majority of the total number of authorized directors
(whether or not there exist any vacancies in previously authorized directorships
at the time any such resolution is presented to the Board of Directors for
adoption), the Chairman of the Board of Directors or the Chief Executive Officer
of the Corporation. Business transacted at special meetings shall be confined to
the purpose or purposes stated in the notice.

         1.4 Notice of Meetings. Written notice of each meeting of stockholders,
whether annual or special, shall be given not less than ten (10) nor more than
sixty (60) days before the date on which the meeting is to be held, to each
stockholder entitled to vote at such meeting, except as otherwise provided
herein or as required by law (meaning here and hereafter, as required from time
to time by the Delaware General Corporation Law or the Certificate of
Incorporation). The notices of all meetings shall state the place, date and hour
of the meeting. The notice of a special meeting shall state, in addition, the
purpose or purposes for which the meeting is called. If mailed, notice is given
when deposited in the United States mail, postage prepaid, directed to the
stockholder at his address as it appears on the records of the corporation

         1.5 Voting List. The officer who has charge of the stock ledger of the
corporation shall prepare, at least ten (10) days before each meeting of
stockholders, a complete list of the stockholders entitled to vote at the
meeting, arranged in alphabetical order, and showing the address of each
stockholder and the number of shares registered in the name of each stockholder.
Such list shall be open to the examination of any stockholder, for any purpose
germane to the meeting, during ordinary business hours, for a period of at least
ten (10) days prior to the meeting, at a place within the city where the meeting
is to be held, which place shall be specified in the notice of the meeting, or
if not so specified, at the place where the meeting is to be held. The list
shall also be produced and kept at the time and place of the meeting during the
whole time of the meeting, and may be inspected by any stockholder who is
present. This list shall

                                       1
<PAGE>   4

determine the identity of the stockholders entitled to vote at the meeting and
the number of shares held by each of them.

         1.6 Quorum. Except as otherwise provided by law or these Bylaws, the
holders of a majority of the shares of the capital stock of the corporation
entitled to vote at the meeting, present in person or represented by proxy,
shall constitute a quorum for the transaction of business. If a quorum shall
fail to attend any meeting, the chairman of the meeting or the holders of a
majority of the shares of stock entitled to vote who are present, in person or
by proxy, may adjourn the meeting to another place, date or time.

         If a notice of any adjourned special meeting of stockholders is sent to
all stockholders entitled to vote thereat, stating that it will be held with
those present constituting a quorum, then except as otherwise required by law,
those present at such adjourned meeting shall constitute a quorum, and all
matters shall be determined by a majority of the votes cast at such meeting.

         1.7 Adjournments. Any meeting of stockholders may be adjourned to any
other time and to any other place at which a meeting of stockholders may be held
under these Bylaws by the holders of a majority of the shares of stock present
or represented at the meeting and entitled to vote, although less than a quorum,
or, if no stockholder is present, by any officer entitled to preside at or to
act as Secretary of such meeting. When a meeting is adjourned to another place,
date or time, written notice need not be given of the adjourned meeting if the
place, date and time thereof are announced at the meeting at which the
adjournment is taken; provided, however, that if the date of any adjourned
meeting is more than thirty (30) days after the date for which the meeting was
originally noticed, or if a new record date is fixed for the adjourned meeting,
written notice of the place, date, and time of the adjourned meeting shall be
given in conformity herewith. At the adjourned meeting, the corporation may
transact any business which might have been transacted at the original meeting.

         1.8 Voting and Proxies. Each stockholder shall have one vote for each
share of stock entitled to vote held of record by such stockholder and a
proportionate vote for each fractional share so held, unless otherwise provided
by law. Each stockholder of record entitled to vote at a meeting of
stockholders, may vote in person or may authorize any other person or persons to
vote or act for him by written proxy executed by the stockholder or his
authorized agent or by a transmission permitted by law and delivered to the
Secretary of the corporation. No stockholder may authorize more than one proxy
for his shares. Any copy, facsimile telecommunication or other reliable
reproduction of the writing or transmission created pursuant to this Section may
be substituted or used in lieu of the original writing or transmission for any
and all purposes for which the original writing or transmission could be used,
provided that such copy, facsimile transmission or other reproduction shall be a
complete reproduction of the entire original writing or transmission.

         1.9 Action at Meeting. When a quorum is present at any meeting, any
election shall be determined by a plurality of the votes cast by the
stockholders entitled to vote at the election, and all other matters shall be
determined by a majority of the votes cast affirmatively or negatively on the
matter (or if there are two or more classes of stock entitled to vote as
separate classes, then in the case of each such class, a majority of each such
class present or represented and voting affirmatively or negatively on the
matter) shall decide such matter, except when a

                                       2
<PAGE>   5

different vote is required by express provision of law, the Certificate of
Incorporation or these Bylaws.

         All voting, including on the election of directors, but excepting where
otherwise required by law, may be by a voice vote; provided, however, that upon
demand therefor by a stockholder entitled to vote or his or her proxy, a stock
vote shall be taken. Every stock vote shall be taken by ballots, each of which
shall state the name of the stockholder or proxy voting and such other
information as may be required under the procedure established for the meeting.
Every vote taken by ballots shall be counted by an inspector or inspectors
appointed by the chairman of the meeting. The corporation may, and to the extent
required by law, shall, in advance of any meeting of stockholders, appoint one
or more inspectors to act at the meeting and make a written report thereof. The
corporation may designate one or more persons as an alternate inspector to
replace any inspector who fails to act. If no inspector or alternate is able to
act at a meeting of stockholders, the person presiding at the meeting may, and
to the extent required by law, shall, appoint one or more inspectors to act at
the meeting. Each inspector, before entering upon the discharge of his duties,
shall take and sign an oath to faithfully execute the duties of inspector with
strict impartiality and according to the best of his or her ability.

         1.10 Notice of Stockholder Business. At an annual meeting of the
stockholders, only such business shall be conducted as shall have been properly
brought before the meeting. To be properly brought before an annual meeting,
business must be (i) specified in the notice of meeting (or any supplement
thereto) given by or at the direction of the Board of Directors, (ii) properly
brought before the meeting by or at the direction of the Board of Directors, or
(iii) properly brought before an annual meeting by a stockholder. For business
to be properly brought before an annual meeting by a stockholder, the
stockholder must have given timely notice thereof in writing to the Secretary of
the Corporation. To be timely, a stockholder proposal to be presented at an
annual meeting shall be received at the Corporation's principal executive
offices not less than 120 calendar days in advance of the date that the
Corporation's (or the Corporation's predecessor's) proxy statement was released
to stockholders in connection with the previous year's annual meeting of
stockholders, except that if no annual meeting was held in the previous year or
the date of the annual meeting has been advanced by more than 30 calendar days
from the date contemplated at the time of the previous year's proxy statement,
notice by the stockholders to be timely must be received not later than the
close of business on the tenth day following the day on which the date of the
annual meeting is publicly announced.

         A stockholder's notice to the Secretary of the corporation shall set
forth as to each matter the stockholder proposes to bring before the annual
meeting (i) a brief description of the business desired to be brought before the
annual meeting, (ii) the name and address, as they appear on the corporation's
books, of the stockholder proposing such business, (iii) the class and number of
shares of the corporation which are beneficially owned by the stockholder, and
(iv) any material interest of the stockholder in such business.

         1.11 Conduct of Business. At every meeting of the stockholders, the
Chairman of the Board, if there is such an officer, or if not, the person
appointed by the Board of Directors, shall act as Chairman. The Secretary of the
corporation or a person designated by the Chairman of the meeting shall act as
Secretary of the meeting. Unless otherwise approved by the Chairman of the
meeting, attendance at the stockholders' meeting is restricted to stockholders
of record, persons

                                       3
<PAGE>   6

authorized in accordance with Section 1.8 of these Bylaws to act by proxy, and
officers of the corporation.

         The Chairman of the meeting shall call the meeting to order, establish
the agenda, and conduct the business of the meeting in accordance therewith or,
at the Chairman's discretion, it may be conducted otherwise in accordance with
the wishes of the stockholders in attendance. The date and time of the opening
and closing of the polls for each matter upon which the stockholders will vote
at the meeting shall be announced at the meeting.

         The Chairman shall also conduct the meeting in an orderly manner, rule
on the precedence of, and procedure on, motions and other procedural matters,
and exercise discretion with respect to such procedural matters with fairness
and good faith toward all those entitled to take part. The Chairman may impose
reasonable limits on the amount of time taken up at the meeting on discussion in
general or on remarks by any one stockholder. Should any person in attendance
become unruly or obstruct the meeting proceedings, the Chairman shall have the
power to have such person removed from participation. Notwithstanding anything
in these Bylaws to the contrary, no business shall be conducted at a meeting
except in accordance with the procedures set forth in this Section 1.11 and
Section 1.10 above. The Chairman of a meeting shall if the facts warrant,
determine and declare to the meeting that any proposed item of business was not
brought before the meeting in accordance with the provisions of this Section
1.11 and Section 1.10, and if he should so determine, he shall so declare to the
meeting and any such business not properly brought before the meeting shall not
be transacted.

         1.12 Stockholder Action Without Meeting. Any action required or
permitted to be taken by the stockholders of the corporation must be effected at
a duly called annual or special meeting of stockholders of the corporation and
may not be effected by any consent in writing by such stockholders.

Article 2. Board of Directors

         2.1 General Powers. The business and affairs of the corporation shall
be managed by or under the direction of a Board of Directors, who may exercise
all of the powers of the corporation except as otherwise provided by law or the
Certificate of Incorporation. In the event of a vacancy in the Board of
Directors, the remaining directors, except as otherwise provided by law, may
exercise the powers of the full Board until the vacancy is filled.

         2.2 Number and Term of Office. The number of directors shall initially
be four (4) and, thereafter, shall be fixed from time to time exclusively by the
Board of Directors pursuant to a resolution adopted by a majority of the total
number of authorized directors (whether or not there exist any vacancies in
previously authorized directorships at the time any such resolution is presented
to the Board for adoption). The directors shall be divided into three classes,
as nearly equal in number as reasonably possible, with the term of office of the
first class to expire at the 2002 annual meeting of stockholders, the term of
office of the second class to expire at the 2003 annual meeting of stockholders
and the term of office of the third class to expire at the 2004 annual meeting
of stockholders. At each annual meeting of stockholders following such initial
classification and election, directors elected to succeed those directors whose
terms expire shall be elected for a term of office to expire at the third
succeeding annual meeting of stockholders

                                       4
<PAGE>   7

after their election. All directors shall hold office until the expiration of
the term for which elected, and until their respective successors are elected,
except in the case of the death, resignation or removal of any director.

         2.3 Vacancies and Newly Created Directorships. Subject to the rights of
the holders of any series of Preferred Stock then outstanding, newly created
directorships resulting from any increase in the authorized number of directors
or any vacancies in the Board of Directors resulting from death, resignation or
other cause (including removal from office by a vote of the stockholders) may be
filled only by a majority vote of the directors then in office, though less than
a quorum, or by the sole remaining director, and directors so chosen shall hold
office for a term expiring at the next annual meeting of stockholders at which
the term of office of the class to which they have been elected expires, and
until their respective successors are elected, except in the case of the death,
resignation or removal of any director. No decrease in the number of directors
constituting the Board of Directors shall shorten the term of any incumbent
director.

         2.4 Resignation. Any director may resign by delivering his written
resignation to the corporation at its principal office or to the President or
Secretary. Such resignation shall be effective upon receipt unless it is
specified to be effective at some other time or upon the happening of some other
event.

         2.5 Regular Meetings. Regular meetings of the Board of Directors may be
held without notice at such time and place, either within or without the State
of Delaware, as shall be determined from time to time by the Board of Directors;
provided that any director who is absent when such a determination is made shall
be given notice of the determination. A regular meeting of the Board of
Directors may be held without notice immediately after and at the same place as
the annual meeting of stockholders.

         2.6 Special Meetings. Special meetings of the Board of Directors may be
held at any time and place, within or without the State of Delaware, designated
in a call by the Chairman of the Board, the President and Chief Executive
Officer, two or more directors, or by one director in the event that there is
only a single director in office.

         2.7 Notice of Special Meetings. Notice of any special meeting of
directors shall be given to each director by the Secretary or by the officer or
one of the directors calling the meeting. Notice shall be duly given to each
director (i) by giving notice to such director in person or by telephone or
electronic voice message system at least 24 hours in advance of the meeting,
(ii) by sending a telegram, telecopy or telex, or delivering written notice by
hand, to his last known business or home address at least 24 hours in advance of
the meeting, or (iii) by mailing written notice to his last known business or
home address at least three (3) day in advance of the meeting. A notice or
waiver of notice of a meeting of the Board of Directors need not specify the
purposes of the meeting. Unless otherwise indicated in the notice thereof, any
and all business may be transacted at a special meeting.

         2.8 Participation in Meetings by Telephone Conference Calls. Directors
or any members of any committee designated by the directors may participate in a
meeting of the Board of Directors or such committee by means of conference
telephone or similar communications

                                       5
<PAGE>   8

equipment by means of which all persons participating in the meeting can hear
each other, and participation by such means shall constitute presence in person
at such meeting.

         2.9 Quorum. A majority of the total number of authorized directors
shall constitute a quorum at any meeting of the Board of Directors. In the event
one or more of the directors shall be disqualified to vote at any meeting, then
the required quorum shall be reduced by one for each such director so
disqualified; provided, however, that in no case shall less than one-third (1/3)
of the number so fixed constitute a quorum. In the absence of a quorum at any
such meeting, a majority of the directors present may adjourn the meeting from
time to time without further notice other than announcement at the meeting,
until a quorum shall be present. Interested directors may be counted in
determining the presence of a quorum at a meeting of the Board of Directors or
at a meeting of a committee which authorizes a particular contract or
transaction.

         2.10 Action at Meeting. At any meeting of the Board of Directors at
which a quorum is present, the vote of a majority of those present shall be
sufficient to take any action, unless a different vote is specified by law, the
Certificate of Incorporation or these Bylaws.

         2.11 Action by Consent. Any action required or permitted to be taken at
any meeting of the Board of Directors or of any committee of the Board of
Directors may be taken without a meeting, if all members of the Board or
committee, as the case may be, consent to the action in writing. Any such
written consents shall be filed with the minutes of proceedings of the Board or
committee.

         2.12 Removal. Subject to the rights of the holders of any series of
Preferred Stock then outstanding, any directors, or the entire Board of
Directors, may be removed from office at any time, but only for cause and only
by the affirmative vote of the holders of at least a majority of the voting
power of all of the outstanding shares of capital stock entitled to vote
generally in the election of directors, voting together as a single class.

         2.13 Committees. The Board of Directors may designate one or more
committees, each committee to consist of one or more of the directors of the
corporation, with such lawfully delegated powers and duties as it therefor
confers, to serve at the pleasure of the Board. The Board may designate one or
more directors as alternate members of any committee, who may replace any absent
or disqualified member at any meeting of the committee. In the absence or
disqualification of a member of a committee, the member or members of the
committee present at any meeting and not disqualified from voting, whether or
not he or they constitute a quorum, may unanimously appoint another member of
the Board of Directors to act at the meeting in the place of any such absent or
disqualified member. Any such committee, to the extent provided in the
resolution of the Board of Directors and subject to the provisions of the
Delaware General Corporation Law, shall have and may exercise all the powers and
authority of the Board of Directors in the management of the business and
affairs of the corporation and may authorize the seal of the corporation to be
affixed to all papers which may require it. Each such committee shall keep
minutes and make such reports as the Board of Directors may from time to time
request. Except as the Board of Directors may otherwise determine, any committee
may make rules for the conduct of its business, but unless otherwise provided by
such rules, its business shall be conducted as nearly as possible in the same
manner as is provided in these Bylaws for the Board of Directors.

                                       6
<PAGE>   9

         2.14 Compensation of Directors. Directors may be paid such compensation
for their services and such reimbursement for expenses of attendance at meetings
as the Board of Directors may from time to the determine. No such payment shall
preclude any director from serving the corporation or any of its parent or
subsidiary corporations in any other capacity and receiving compensation for
such service.

         2.15 Nomination of Director Candidates. Subject to the rights of
holders of any class or series of Preferred Stock then outstanding, nominations
for the election of Directors may be made by the Board of Directors or a proxy
committee appointed by the Board of Directors or by any stockholder entitled to
vote in the election of Directors generally. However, any stockholder entitled
to vote in the election of Directors generally may nominate one or more persons
for election as Directors at a meeting only if timely notice of such
stockholder's intent to make such nomination or nominations has been given in
writing to the Secretary of the Corporation. To be timely, a stockholder
nomination for a director to be elected at an annual meeting shall be received
at the corporation's principal executive offices not less than 120 calendar days
in advance of the date that the corporation's proxy statement was released to
stockholders in connection with the previous year's annual meeting of
stockholders, except that if no annual meeting was held in the previous year or
the date of the annual meeting has been advanced by more than 30 calendar days
from the date contemplated at the time of the previous year's proxy statement,
or in the event of a nomination for director to be elected at a special meeting,
notice by the stockholders to be timely must be received not later than the
close of business on the tenth day following the day on which such notice of the
date of the special meeting was mailed or such public disclosure was made. Each
such notice shall set forth: (a) the name and address of the stockholder who
intends to make the nomination and of the person or persons to be nominated; (b)
a representation that the stockholder is a holder of record of stock of the
corporation entitled to vote for the election of directors on the date of such
notice and intends to appear in person or by proxy at the meeting to nominate
the person or persons specified in the notice; (c) a description of all
arrangements or understandings between the stockholder and each nominee and any
other person or persons (naming such person or persons) pursuant to which the
nomination or nominations are to be made by the stockholder; (d) such other
information regarding each nominee proposed by such stockholder as would be
required to be included in a proxy statement filed pursuant to the proxy rules
of the Securities and Exchange Commission, had the nominee been nominated, or
intended to be nominated, by the Board of Directors; and (e) the consent of each
nominee to serve as a director of the corporation if so elected.

         In the event that a person is validly designated as a nominee in
accordance with this Section 2.15 and shall thereafter become unable or
unwilling to stand for election to the Board of Directors, the Board of
Directors or the stockholder who proposed such nominee, as the case may be, may
designate a substitute nominee upon delivery, not fewer than five days prior to
the date of the meeting for the election of such nominee, of a written notice to
the Secretary, setting forth such information regarding such substitute nominee
as would have been required to be delivered to the Secretary pursuant to this
Section 2.15 had such substitute nominee been initially proposed as a nominee.
Such notice shall include a signed consent to serve as a director of the
Corporation, if elected, of each such substitute nominee.

         If the chairman of the meeting for the election of Directors determines
that a nomination of any candidate for election as a Director at such meeting
was not made in accordance with the

                                       7
<PAGE>   10

applicable provisions of this Section 2.15, such nomination shall be void;
provided, however, that nothing in this Section 2.15 shall be deemed to limit
any voting rights upon the occurrence of dividend arrearages provided to holders
of Preferred Stock pursuant to the Preferred Stock designation for any series of
Preferred Stock.

Article 3. Officers

         3.1 Enumeration. The officers of the corporation shall consist of a
President and Chief Executive Officer, a Secretary, a Chief Financial Officer
and such other officers with such other titles as the Board of Directors shall
determine, including, at the discretion of the Board of Directors, a Chairman of
the Board, and one or more Vice Presidents and Assistant Secretaries. The Board
of Directors may appoint such other officers as it may deem appropriate.

         3.2 Election. Officers shall be elected annually by the Board of
Directors at its first meeting following the annual meeting of stockholders.
Officers may be appointed by the Board of Directors at any other meeting.

         3.3 Qualification. No officer need be a stockholder. Any two or more
offices may be held by the same person.

         3.4 Tenure. Except as otherwise provided by law, by the Certificate of
Incorporation or by these Bylaws, each officer shall hold office until his
successor is elected and qualified, unless a different term is specified in the
vote appointing him, or until his earlier death, resignation or removal.

         3.5 Resignation and Removal. Any officer may resign by delivering his
written resignation to the corporation at its principal office or to the
President or Secretary. Such resignation shall be effective upon receipt unless
it is specified to be effective at some other time or upon the happening of some
other event. Any officer may be removed at any time, with or without cause, by
the Board of Directors.

         3.6 Chairman of the Board. The Board of Directors may appoint a
Chairman of the Board. If the Board of Directors appoints a Chairman of the
Board, he shall perform such duties and possess such powers as are assigned to
him by the Board of Directors. Unless otherwise provided by the Board of
Directors, he shall preside at all meetings of the stockholders, and, if he is a
director, at all meetings of the Board of Directors.

         3.7 Chief Executive Officer. Subject to such powers and duties, if any,
as may be prescribed by these Bylaws or the Board of Directors for the Chairman
of the Board, if there be such an officer, the Chief Executive Officer shall,
subject to the control of the Board of Directors, have general supervision,
direction, and control of the business and officers of the Corporation. In the
absence of the Chairman of the Board, or if there be none, the Chief Executive
Officer shall preside at all meetings of the stockholders and all meetings of
the Board of Directors. He or she shall have all the powers and shall perform
all of the duties which are ordinarily inherent in the office of the Chief
Executive Officer of a corporation, and he or she shall have such further powers
and shall perform such further duties as may be prescribed for him or her by the
Board of Directors.

                                       8
<PAGE>   11

         3.8 President. The President shall, in addition to any other duties
delegated to him or her, be the chief operating officer of the Corporation,
shall have active management of the business of the Corporation and shall see
that all orders and resolutions of the Board of Directors, Chairman of the Board
and Chief Executive Officer are carried into effect.

         3.9 Vice Presidents. Any Vice President shall perform such duties and
possess such powers as the Board of Directors or the President may from time to
time prescribe. In the event of the absence, inability or refusal to act of the
President, the Vice President (or if there shall be more than one, the Vice
Presidents in the order determined by the Board of Directors) shall perform the
duties of the President and when so performing shall have at the powers of and
be subject to all the restrictions upon the President. The Board of Directors
may assign to any Vice President the title of Executive Vice President, Senior
Vice President or any other title selected by the Board of Directors.

         3.10 Secretary and Assistant Secretaries. The Secretary shall perform
such duties and shall have such powers as the Board of Directors or the
President may from time to time prescribe. In addition, the Secretary shall
perform such duties and have such powers as are incident to the office of the
Secretary, including, without limitation, the duty and power to give notices of
all meetings of stockholders and special meetings of the Board of Directors, to
keep a record of the proceedings of all meetings of stockholders and the Board
of Directors, to maintain a stock ledger and prepare lists of stockholders and
their addresses as required, to be custodian of corporate records and the
corporate seal and to affix and attest to the same on documents.

         Any Assistant Secretary shall perform such duties and possess such
powers as the Board of Directors, the President or the Secretary may from time
to time prescribe. In the event of the absence, inability or refusal to act of
the Secretary, the Assistant Secretary (or if there shall be more than one, the
Assistant Secretaries in the order determined by the Board of Directors) shall
perform the duties and exercise the powers of the Secretary.

         In the absence of the Secretary or any Assistant Secretary at any
meeting of stockholders or directors, the person presiding at the meeting shall
designate a temporary secretary to keep a record of the meeting.

         3.11 Chief Financial Officer. Unless otherwise designated by the Board
of Directors, the Chief Financial Officer shall be the Treasurer. The Chief
Financial Officer shall perform such duties and shall have such powers as may
from time to time be assigned to him by the Board of Directors or the President.
In addition, the Chief Financial Officer shall perform such duties and have such
powers as are incident to the office of chief financial officer, including
without limitation, the duty and power to keep and be responsible for all funds
and securities of the corporation, to maintain the financial records of the
corporation, to deposit funds of the corporation in depositories as authorized,
to disburse such funds as authorized, to make proper accounts of such funds, and
to render as required by the Board of Directors accounts of all such
transactions and of the financial condition of the corporation.

         3.12 Salaries. Officers of the corporation shall be entitled to such
salaries, compensation or reimbursement as shall be fixed or allowed from time
to time by the Board of Directors.

                                       9
<PAGE>   12

         3.13 Delegation of Authority. The Board of Directors may from time to
time delegate the powers or duties of any officer to any other officers or
agents, notwithstanding any provision hereof.

Article 4. Capital Stock

         4.1 Issuance of Stock. Unless otherwise voted by the stockholders and
subject to the provisions of the Certificate of Incorporation, the whole or any
part of any unissued balance of the authorized capital stock of the corporation
or the whole or any part of any unissued balance of the authorized capital stock
of the corporation held in its treasury may be issued, sold, transferred or
otherwise disposed of by vote of the Board of Directors in such manner, for such
consideration and on such terms as the Board of Directors may determine.

         4.2 Certificates of Stock. Every holder of stock of the corporation
shall be entitled to have a certificate, in such form as may be prescribed by
law and by the Board of Directors, certifying the number and class of shares
owned by him in the corporation. Each such certificate shall be signed by, or in
the name of the corporation by, the Chairman or Vice-Chairman, if any, of the
Board of Directors, or the President or a Vice President, and the Chief
Financial Officer, or the Secretary or an Assistant Secretary of the
corporation. Any or all of the signatures on the certificate may be a facsimile.

         Each certificate for shares of stock which are subject to any
restriction on transfer pursuant to the Certificate of Incorporation, the
Bylaws, applicable securities laws or any agreement among any number of
shareholders or among such holders and the corporation shall have conspicuously
noted on the face or back of the certificate either the full text of the
restriction or a statement of the existence of such restriction.

         4.3 Transfers. Except as otherwise established by rules and regulations
adopted by the Board of Directors, and subject to applicable law, shares of
stock may be transferred on the books of the corporation by the surrender to the
corporation or its transfer agent of the certificate representing such shares
properly endorsed or accompanied by a written assignment or power of attorney
properly executed, and with such proof of authority or authenticity of signature
as the corporation or its transfer agent may reasonably require. Except as may
be otherwise required by law, by the Certificate of Incorporation or by these
Bylaws, the corporation shall be entitled to treat the record holder of stock as
shown on its books as the owner of such stock for all purposes, including the
payment of dividends and the right to vote with respect to such stock,
regardless of any transfer, pledge or other disposition of such stock until the
shares have been transferred on the books of the corporation in accordance with
the requirements of these Bylaws.

         4.4 Lost, Stolen or Destroyed Certificates. The corporation may issue a
new certificate of stock in place of any previously saved certificate alleged to
have been lost, stolen, or destroyed, upon such terms and conditions as the
Board of Directors may prescribe, including the presentation of reasonable
evidence of such loss, theft or destruction and the giving of such indemnity as
the Board of Directors may require for the protection of the corporation or any
transfer agent or registrar.

                                       10
<PAGE>   13

         4.5 Record Date. The Board of Directors may fix in advance a date as a
record date for the determination of the stockholders entitled to notice of or
to vote at any meeting of stockholders or to express consent (or dissent) to
corporate action in writing without a meeting, or entitled to receive payment of
any dividend or other distribution or allotment of any rights in respect of any
change, concession or exchange of stock, or for the purpose of any other lawful
action. Such record date shall not be more than sixty (60) nor less than ten
(10) days before the date of such meeting, nor more than sixty (60) days prior
to any other action to which such record date relates.

         If no record date is fixed, the record date for determining
stockholders entitled to notice of or to vote at a meeting of stockholders shall
be at the close of business on the day before the day on which notice is given,
or, if notice is waived, at the close of business on the day before the day on
which the meeting is held. The record date for determining stockholders entitled
to express consent to corporate action in writing without a meeting when no
prior action by the Board of Directors is necessary, shall be the day on which
the first written consent is expressed. The record date for determining
stockholders for any other purpose shall be at the close of business on the day
on which the Board of Directors adopts the resolution relating to such purpose.

         A determination of stockholders of record entitled to notice of or to
vote at a meeting of stockholders shall apply to any adjournment of the meeting;
provided, however, that the Board of Directors may fix a new record date for the
adjourned meeting.

Article 5. General Provisions

         5.1 Fiscal Year. The fiscal year of the corporation shall be as fixed
by the Board of Directors.

         5.2 Corporate Seal. The corporate seal shall be in such form as shall
be approved by the Board of Directors.

         5.3 Waiver of Notice. Whenever any notice whatsoever is required to be
given by law, by the Certificate of Incorporation or by these Bylaws, a waiver
of such notice either in writing signed by the person entitled to such notice or
such person's duly authorized attorney, or by telecopy, telegraph, cable or any
other available method, whether before, at or after the time stated in such
waiver, or the appearance of such person or persons at such meeting in person or
by proxy, shall be deemed equivalent to such notice.

         5.4 Actions with Respect to Securities of Other Corporations. Except as
the Board of Directors may otherwise designate, the President or any officer of
the corporation authorized by the President shall have the power to vote and
otherwise act on behalf of the corporation, in person or proxy, and may waive
notice of, and act as, or appoint any person or persons to act as, proxy or
attorney-in-fact to this corporation (with or without power of substitution) at
any meeting of stockholders or shareholders (or with respect to any action of
stockholders) of any other corporation or organization, the securities of which
may be held by this corporation and otherwise to exercise any and all rights and
powers which this corporation may possess by

                                       11
<PAGE>   14

reason of this corporation's ownership of securities in such other corporation
or other organization.

         5.5 Evidence of Authority. A certificate by the Secretary, or an
Assistant Secretary, or a temporary Secretary, as to any action taken by the
stockholders, directors, a committee or any officer or representative of the
corporation shall as to all persons who rely on the certificate in good faith be
conclusive evidence of such action.

         5.6 Certificate of Incorporation. All references in these Bylaws to the
Certificate of Incorporation shall be deemed to refer to the Amended and
Restated Certificate of Incorporation of the corporation, as amended and in
effect from time to time.

         5.7 Severability. Any determination that any provision of these Bylaws
is for any reason inapplicable, illegal or ineffective shall not affect or
invalidate any other provision of these Bylaws.

         5.8 Pronouns. All pronouns used in these Bylaws shall be deemed to
refer to the masculine, feminine or neuter, singular or plural, as the identity
of the person or persons may require.

         5.9 Notices. Except as otherwise specifically provided herein or
required by law, all notices required to be given to any stockholder, director,
officer, employee or agent shall be in writing and may in every instance be
effectively given by hand delivery to the recipient thereof, by depositing such
notice in the mails, postage paid, or by sending such notice by prepaid
telegram, mailgram, telecopy or commercial courier service. Any such notice
shall be addressed to such stockholder, director, officer, employee or agent at
his or her last known address as the same appears on the books of the
Corporation. The time when such notice shall be deemed to be given shall be the
time such notice is received by such stockholder, director, officer, employee or
agent, or by any person accepting such notice on behalf of such person, if hand
delivered, or the time such notice is dispatched, if delivered through the mails
or be telegram or mailgram.

         5.10 Reliance Upon Books, Reports and Records. Each director, each
member of any committee designated by the Board of Directors, and each officer
of the corporation shall, in the performance of his duties, be fully protected
in relying in good faith upon the books of account or other records of the
corporation, including reports made to the corporation by any of its officers,
by an independent certified public accountant, or by an appraiser selected with
reasonable care.

         5.11 Time Periods. In applying any provision of these Bylaws which
require that an act be done or not done a specified number of days prior to an
event or that an act be done during a period of a specified number of days prior
to an event, calendar days shall be used, the day of the doing of the act shall
be excluded, and the day of the event shall be included.

         5.12 Facsimile Signatures. In addition to the provisions for use of
facsimile signatures elsewhere specifically authorized in these Bylaws,
facsimile signatures of any officer or officers of the corporation may be used
whenever and as authorized by the Board of Directors or a committee thereof.

                                       12
<PAGE>   15

Article 6. Amendments

         6.1 By the Board of Directors. Except as is otherwise set forth in
these Bylaws, these Bylaws may be altered, amended or repealed or new Bylaws may
be adopted by the approval of a majority of the total number of authorized
directors (whether or not there exist any vacancies in previously authorized
directorships at the time any such resolution is presented to the Board of
Directors for adoption).

         6.2 By the Stockholders. Except as otherwise set forth in these Bylaws,
these Bylaws may be altered, amended or repealed or new Bylaws may be adopted by
the affirmative vote of the holders of at least eighty percent (80%) of the
voting power of all of the then outstanding shares of the capital stock of the
corporation entitled to vote generally in the election of directors, voting
together as a single class.

Article 7. Indemnification of Directors and Officers

         7.1 Right to Indemnification. Each person who was or is made a party or
is threatened to be made a party to or is involved in any action, suit or
proceeding, whether civil, criminal, administrative or investigative
("proceeding"), by reason of the fact that he or she or a person of whom he or
she is the legal representative, is or was a director or officer of the
corporation or is or was serving at the request of the corporation as a director
or officer of another corporation, or of a partnership, joint venture, trust or
other enterprise, including service with respect to employee benefit plans,
whether the basis of such proceeding is alleged action in an official capacity
as a director, officer or employee or in any other capacity while serving as a
director, officer or employee, shall be indemnified and held harmless by the
corporation to the fullest extent authorized by the Delaware General Corporation
Law, as the same exists or may hereafter be amended (but, in the case of any
such amendment, only to the extent that such amendment permits the corporation
to provide broader indemnification rights than said Law permitted the
corporation to provide prior to such amendment) against all expenses, liability
and loss reasonably incurred or suffered by such person in connection therewith
and such indemnification shall continue as to a person who has ceased to be a
director, officer or employee and shall inure to the benefit of his or her
heirs, executors and administrators; provided, however, that except as provided
in Section 7.2 of this Article 7, the corporation shall indemnify any such
person seeking indemnity in connection with an action, suit or proceeding (or
part thereof) initiated by such person only if (a) such indemnification is
expressly required to be made by law, (b) the action, suit or proceeding (or
part thereof) was authorized by the Board of Directors of the corporation, (c)
such indemnification is provided by the corporation, in its sole discretion,
pursuant to the powers vested in the corporation under the Delaware General
Corporation Law, or (d) the action, suit or proceeding (or part thereof) is
brought to establish or enforce a right to indemnification under an indemnity
agreement or any other statute or law or otherwise as required under Section 145
of the Delaware General Corporation Law. Such right shall be a contract right
and shall include the right to be paid by the corporation expenses incurred in
defending any such proceeding in advance of its final disposition; provided,
however, that, unless the Delaware General Corporation Law then so prohibits,
the payment of such expenses incurred by a director or officer of the
Corporation in his or her capacity as a director or officer (and not in any
other capacity in which service was or is tendered by such person while a
director or officer, including, without limitation, service to an employee
benefit plan) in advance

                                       13
<PAGE>   16

of the final disposition of such proceeding, shall be made only upon delivery to
the corporation of an undertaking, by or on behalf of such director or officer,
to repay all amounts so advanced if it should be determined ultimately that such
director or officer is not entitled to be indemnified under this Section or
otherwise.

         7.2 Right of Claimant to Bring Suit. If a claim under Section 7.1 is
not paid in full by the corporation within ninety (90) days after a written
claim has been received by the corporation, the claimant may at any time
thereafter bring suit against the corporation to recover the unpaid amount of
the claim and, if such suit is not frivolous or brought in bad faith, the
claimant shall be entitled to be paid also the expense of prosecuting such
claim. It shall be a defense to any such action (other than an action brought to
enforce a claim for expenses incurred in defending any proceeding in advance of
its final disposition where the required undertaking, if any, has been tendered
to this corporation) that the claimant has not met the standards of conduct
which make it permissible under the Delaware General Corporation Law for the
corporation to indemnify the claimant for the amount claimed. Neither the
failure of the corporation (including its Board of Directors, independent legal
counsel, or its stockholders) to have made a determination prior to the
commencement of such action that indemnification of the claimant is proper in
the circumstances because he or she has met the applicable standard of conduct
set forth in the Delaware General Corporation Law, nor an actual determination
by the corporation (including its Board of Directors, independent legal counsel
or its stockholders) that the claimant has not met such applicable standard of
conduct, shall be a defense to the action or create a presumption that claimant
has not met the applicable standard of conduct.

         7.3 Indemnification of Employees and Agents. The corporation may, to
the extent authorized from time to time by the Board of Directors, grant rights
to indemnification, and to the advancement of related expenses, to any employee
or agent of the corporation to the fullest extent of the provisions of this
Article with respect to the indemnification of and advancement of expenses to
directors and officers of the corporation.

         7.4 Non-Exclusivity of Rights. The rights conferred on any person in
Sections 7.1 and 7.2 shall not be exclusive of any other right which such
persons may have or hereafter acquire under any statute, provision of the
Certificate of Incorporation, bylaw, agreement, vote of stockholders or
disinterested directors or otherwise.

         7.5 Indemnification Contracts. The Board of Directors is authorized to
enter into a contract with any director, officer, employee or agent of the
corporation, or any person serving at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, including employee benefit plans, providing
for indemnification rights equivalent to or, if the Board of Directors so
determines, greater than, those provided for in this Article 7.

         7.6 Insurance. The corporation shall maintain insurance to the extent
reasonably available, at its expense, to protect itself and any such director,
officer, employee or agent of the corporation or another corporation,
partnership, joint venture, trust or other enterprise against any such expense,
liability or loss, whether or not the corporation would have the power to
indemnify such person against such expense, liability or loss under the Delaware
General Corporation Law.

                                       14
<PAGE>   17

         7.7 Effect of Amendment. Any amendment, repeal or modification of any
provision of this Article 7 by the stockholders and the directors of the
corporation shall not adversely affect any right or protection of a director or
officer of the corporation existing at the time of such amendment, repeal or
modification.

                                       15<PAGE>   1
                             CONFIDENTIAL MATERIAL
                       OMITTED AND FILED SEPARATELY WITH
                    THE SECURITIES AND EXCHANGE COMMISSION.
                        ASTERISKS DENOTE SUCH OMISSIONS.

                             CONFIDENTIAL TREATMENT
                        PDF SOLUTIONS, INC. HAS REQUESTED
                        THAT THE MARKED PORTIONS OF THIS
                        DOCUMENT BE ACCORDED CONFIDENTIAL
                      TREATMENT PURSUANT TO RULE 406 UNDER
                     THE SECURITIES ACT OF 1933, AS AMENDED.

                                                                   EXHIBIT 10.15

INTEGRATION TECHNOLOGY AGREEMENT

        THIS INTEGRATION TECHNOLOGY AGREEMENT ("this Agreement") is made and
entered into as of ********** (the "EFFECTIVE DATE") by and between
Semiconductor Company of Matsushita Electronics Corporation, a Japanese
corporation ("CUSTOMER") and PDF Solutions, Inc., a California corporation ("PDF
SOLUTIONS").

                                TERM AND CONTACTS

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Customer: Semiconductor Company,            Contact: **********
Matsushita Electronics Corporation
<S>                                         <C>
Address:  **********                        Phone:  **********

          **********                        Fax:    **********

Website: http://www.**********              E-Mail: **********
</TABLE>
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Term: This agreement shall commence on the Effective Date and shall expire on
July 31, 2001, unless sooner terminated in accordance with Sections 1.2 or 1.3.

<TABLE>
<CAPTION>
<S>                                            <C>
All notices, correspondence and invoices
pertaining to this Agreement shall be
sent to the persons and addresses listed,
or such other address as the applicable
party designates by giving written notice:

   To Customer:
                                               To PDF Solutions:
   Matsushita Electronics Corporation **,
   ********************                        PDF Solutions, Inc.
   ********************                        333 West San Carlos Street
                                               Suite 700
   Phone:  **********                          San Jose, CA 95110
   Fax:    **********                          Attn:     Chief Financial Officer
                                               Tel:      (408) 938-6445
                                               Fax:      (408) 938-6478
</TABLE>
--------------------------------------------------------------------------------

        The parties have caused their duly authorized representatives to execute
and deliver this Agreement, which consists of this cover page, the attached
Terms and Conditions and any attached executed exhibits.

CUSTOMER                                    PDF SOLUTIONS, INC.
Matsushita Electronics Corporation
-----------------------------------

Signed: /s/ Seiji Ueda                     Signed: /s/ John K. Kibarian
       ----------------------------                -----------------------------

Printed: Seiji Ueda                        Printed: John K. Kibarian
        ---------------------------                 ----------------------------

TITLE:  Director                           TITLE:  President & CEO
      -----------------------------               ------------------------------

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
<PAGE>   2

                              TERMS AND CONDITIONS

                        INTEGRATION TECHNOLOGY AGREEMENT

                                    RECITALS

        A. PDF Solutions possesses technology and expertise useful in
discovering, analyzing, and fixing problems in the design and manufacturing
processes that cause low yields of useable integrated circuits.

        B. Customer desires to engage PDF Solutions and receive a license to
certain technology useful to analyze its internal integrated circuit
manufacturing process, identify problems therewith, and recommend solutions
thereto, by way of methodology or otherwise, upon the terms and conditions
contained herein.

        C. PDF Solutions desires to be so engaged upon the terms and conditions
contained herein.

                                   DEFINITIONS

"Analysis" refers to all interpretations, recommendations, extractions,
statistical models or other yield and performance models developed by PDF
Solutions and derived in whole or in part from Customer's Raw Data; provided,
however, that Analysis does not include any information sufficiently detailed
that Raw Data could be feasibly re-constructed.

"Characterization Vehicle" or "CV" refers to the parameterized layout structures
or circuit elements, specific implementations of said structures or circuit
elements either in computer format or layout format (for example, GDS-II files),
and images of said structures or circuit elements, historically or hereafter
created or customized by PDF Solutions for the purposes of creating a test
vehicle used to characterize any given manufacturing process. Manufacturing
Designs are usually referenced in the process of generating CVs for the purposes
of optimizing or tuning the vehicle to the targeted designs and process. The CV
is used to create a Mask Set which is used by the fabrication facility to
generate test wafers.

"Developed Technology" refers to all methodologies, techniques, designs, problem
solving processes and practices developed by jointly by the parties in the
course of the performance of this Agreement.

"Manufacturing Designs" refers to all non-public information relating to
*****************

"Mask Set" refers to translucent glass plates used as a light filter to transfer
designs onto a wafer.

"Modified Standard Process of Customer" means the standard process of Customer
for comparison purpose which will be obtained by Customer as the result of
successful completion of this project under the Agreement."

"Permitted Field of Use" means the field of use described in Exhibit "A".

"Proprietary Rights" shall mean all intellectual property rights including, but
not limited to, patents, patent applications, copyrights, copyright
registrations, moral rights, mask work rights, rights of authorship, industrial
design rights, trademarks, tradenames, know-how and trade secrets, irrespective
of whether such rights arise under U.S. or worldwide intellectual property,
unfair competition or trade secret laws.

"PDF Technology" refers to (a) all the methodologies, techniques, software,
designs, CVs, CV layout, Design of Experiments used in creating CV layout,
problem solving processes and practices developed and utilized by PDF Solutions
(i) prior to the Effective Date of this Agreement or (ii) during the term hereof
independently of this Agreement and (b) ***********

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       2
<PAGE>   3

***

"Raw Data" shall mean the data generated by PDF Solutions using the CV in
conjunction with Customer's Manufacturing Design.

     "R&D Team" means those employees of Customer and employees of the ********
(****) who provide research and development work with respect to Customers IC
products in the pre-qualification effort or have a need to know with regards to
the development work of the pre-qualification effort.

                                    AGREEMENT

        NOW, THEREFORE, in consideration of the mutual promises herein
contained, the above recitals and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Customer and PDF
Solutions, intending to be legally bound, hereby agree as follows:

SECTION 1. TERM AND TERMINATION

        1.1 Term. This Agreement shall commence on the Effective Date and shall
expire as described in the attached cover sheet.

        1.2 Termination for Cause. This Agreement may be terminated upon thirty
(30) days prior written notice by either party if the other party materially
breaches or fails to perform any material obligations hereunder and the
breaching party fails to cure such breach within thirty (30) days of such
written notice. Notwithstanding the foregoing, the cure period for any failure
of Customer to pay Fees and Reimbursements due hereunder shall be ten (10) days
from the date of receipt by Customer of any notice of breach relating thereto.
In the event of a termination under this Section 1.2, Customer shall pay PDF
Solutions all Fixed Fees incurred through the effective date of such
termination, all Reimbursements incurred through the effective date of such
termination and, if PDF Solutions shall so terminate this Agreement, all
Incentive Fees that would otherwise have been earned had this Agreement not been
terminated shall be paid after such termination in accordance with the time
schedule and milestone objectives in Exhibit B.

        1.3 Survival of Provisions. Any and all obligations and duties which
have accrued hereunder upon such termination shall survive the termination and
remain obligations and duties of the burdened party. Additionally, Sections 3
(Payment for Services and Technology) as modified by this Section 1, 4
(Proprietary Rights), 5 (Confidentiality), 6 (Representations and Warranties), 7
(Indemnity), 8 (Limitation of Liability), 9 (Export Controls) and 10
(Miscellaneous) shall survive the expiration or sooner termination of this
Agreement and remain binding upon the parties hereto; provided that in the event
of any termination of this Agreement by PDF Solutions pursuant to Section 1.3,
any and all rights and licenses granted by PDF Solutions to Customer hereunder
shall terminate effective upon such termination.

SECTION 2. DELIVERY OF SERVICES

        2.1 Scope of Services. During the term of this Agreement, PDF Solutions
shall furnish the PDF technology and related services (the "SERVICES AND
TECHNOLOGY") described in detail in EXHIBIT "A" attached hereto (the "SCOPE OF
SERVICES AND TECHNOLOGY"). The manner and means used by PDF Solutions to provide
the Services and Technology are in the control of PDF Solutions but shall at all
times be satisfactory to Customer.

        2.2 Standard for Performance. PDF Solutions shall perform and deliver
the Services and Technology under this Agreement in accordance with the
standards and practices of care consistent with the quality of services PDF
Solutions performs for its other similarly situated clients. PDF Solutions at
all times shall

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       3
<PAGE>   4

provide such number of qualified and skilled personnel to perform and deliver
the Services and Technology in accordance with the quality standards, time
frames and other requirements set forth in this Agreement. PDF Solutions shall
utilize and comply with the relevant portions of any regulatory standards
applicable to the provision of the Services and Technology. PDF Solutions shall
promptly repair or replace at its own expense all damages, scars or
disfigurements to any materials or property that is part of, or contained in,
Customer's work site that are the result of the negligence of personnel employed
by PDF Solutions.

        2.3 Customer Assistance. Subject to Section 5 (Confidentiality),
Customer will provide PDF Solutions with such information, materials, technology
and Proprietary Rights as PDF Solutions shall reasonably require in order to
perform and deliver the Services and Technology as specified in the Scope of
Services and Technology.

        2.4 Mutual Cooperation; Schedule. Customer and PDF Solutions agree to
cooperate in good faith to achieve completion of the Services and Technology in
a timely and professional manner. Customer understands and agrees that PDF
Solutions' provision of the Services and Technology may depend on Customer or a
third party completing certain tasks or adhering to certain schedules within
Customer's control. Consequently, the schedule for completion of the Services
and Technology or any portion thereof or milestones for payment of Fees may
require adjustments or changes in the event such tasks are not completed as
anticipated. PDF Solutions shall bear no liability or otherwise be responsible
for or penalized by delays in the provision of Services and Technology or any
portion thereof proximately caused by failure by Customer or a third party to
complete a reasonable task or adhere to a reasonable schedule.

SECTION 3. PAYMENT FOR SERVICES

        3.1 Fees. As compensation for the Services and Technology, Customer
shall pay to PDF Solutions the fees ("FEES") set forth in EXHIBIT "B" attached
hereto.

        3.2 Expenses. Customer shall also reimburse PDF Solutions for its
reasonable out-of-pocket expenses incurred in carrying out its obligations under
this Agreement including, but not limited to, travel, hotel, meals, document
production and other customary business expenses directly related to the
Services and Technology ("REIMBURSEMENT"). Travel, other than trips to
Customer's office or fabrication facilities, shall be in accordance with PDF
Solution's travel policy. Reimbursement for expenses incurred in an amount of up
to $******* in any calendar month shall not require the written approval of
Customer; provided, however, that any extraordinary engagement-related purchases
including, but not limited to, expenses for mask production, equipment
purchases, on-site facilities and on-site communications services, must receive
Customer's prior written authorization. Customer shall not have any liability to
PDF Solutions for any Reimbursement for expenses incurred in an amount in excess
of $******* in any calendar month, unless such expenses are approved in writing
by both parties.

        3.3 Invoice. PDF Solutions shall bill Customer as agreed herein for
Services and Technology pursuant to an invoice delivered on a monthly basis.
Each invoice shall be accompanied by a reasonably detailed breakdown of the
invoiced amount.

        3.4 Payment of Invoices. All payments by Customer hereunder shall be
made in U.S. Dollars by telegraphic transfer to the bank designated by PDF
Solutions. All invoices shall be due and payable within **************** after
the date of invoice. Amounts not paid in accordance herewith shall be subject to
a late charge equal to ************************ (or, if less, the maximum
allowed by applicable law). Without prejudice to other remedies available, PDF
Solutions reserves the right to suspend performance and delivery of Services and
Technology until such delinquency is corrected, provided that PDF Solutions
shall give written notice of payment delinquency and

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       4
<PAGE>   5

shall give ten (10) days advance written notice of its intention to suspend
performance. The amounts payable to PDF Solutions hereunder are exclusive of any
sales or use or other taxes or governmental charges. Customer shall be
responsible for payment of all such taxes or charges except for any taxes based
solely on PDF Solutions' net income. If Customer is required to pay any taxes
based on this Section 3.4, Customer shall pay such taxes with no reduction or
offset in the amounts payable to PDF Solutions hereunder.

SECTION 4. PROPRIETARY RIGHTS

        4.1 Ownership. Customer and PDF Solutions acknowledge and agree that, as
between them, ownership shall be as follows:

                (a) PDF Solutions is the exclusive owner of all PDF Technology
and all Proprietary Rights in the PDF Technology;

                (b) Customer is the exclusive owner of all Analysis,
Manufacturing Designs, Raw Data, Modified Standard Process of Customer and all
Proprietary Rights in the Analysis, Manufacturing Design ,the Raw Data and
Modified Standard Process of Customer;

                (c) Customer and PDF Solutions shall jointly own the Developed
Technology and related Proprietary Rights and each party shall be free to
exploit Developed Technology without any obligation to account to the other
party for royalties, to share any royalties or to cooperate in the enforcement
or defense of Proprietary Rights in Developed Technology.

                (d) Customer is the exclusive owner of *****; provided, however,
that during the term of this Agreement and thereafter, such ***** may be used
only by the ***** and only within the Permitted Field of Use, and Customer will
not license, transfer or disclose the ***** to any third party or outside of the
*****.

        To the extent the law would provide for ownership other than as provided
herein, (y) Customer hereby assigns to PDF Solutions its right, title and
interest in and to the PDF Technology and the Proprietary Rights in the PDF
Technology and (z) PDF Solutions hereby assigns to Customer its right, title and
interest in and to the Analysis, Manufacturing Designs, Raw Data, Modified
Standard Process of Customer and the Proprietary Rights in the Analysis,
Manufacturing Designs and Raw Data, such Modified Standard Process of Customer
and in the Mask Sets for CVs, subject to the restrictions set forth in
Subsection (c) above.

        4.2 Grant of License by PDF Solutions. Subject to the terms and
conditions of this Agreement, including the timely payment of Fees, PDF
Solutions hereby grants to Customer, a perpetual, non-exclusive, irrevocable,
non-transferable license (without any right to sublicense) only for the
********** to use the PDF Technology and associated Proprietary Rights disclosed
by PDF Solutions under this Agreement, but only to the extent PDF Solutions has
the right to grant such license; provided that such license is solely for use of
PDF Technology by the ******** within the permitted field of use. The foregoing
license includes all PDF Technology disclosed by PDF Solutions in its work for
Customer hereunder (including methodologies and practices observed by the
******** in the course of PDF Solutions' work hereunder); provided, however,
that specifically excluded from this license of PDF Technology is any and all
software or software tools or software manuals and documentation to the extent
related to PDF Technology. Customer shall not disclose or license PDF Technology
to any third party or outside of the *******.

        4.3 Grant of License by Customer. Subject to the terms and conditions of
this Agreement, Customer hereby grants to PDF Solutions a perpetual,
non-exclusive, irrevocable, worldwide, non-transferable, license (without the
right to sublicense), but only to the extent Customer has the right to grant
such license, as follows:

                                       5

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
<PAGE>   6

                (a) to incorporate Customer's Manufacturing Designs in CVs at
any time during the term solely for the purpose of performing under this
Agreement; and

                (b) to use, copy, compile, manipulate, analyze or reproduce Raw
Data and the Mask Sets for CVs solely for the purpose of performing under this
Agreement.

        4.4 No Other Rights. Except as otherwise set forth in this Section 4,
neither this Agreement nor performance and delivery of the Services and
Technology shall give either PDF Solutions or Customer any ownership, interest
in, or rights to, the Proprietary Rights owned or provided by the other party.

        4.5 Reference Right. Nothing in this Agreement shall be construed as
limiting the free right of Customer to refer to the Modified Standard Process of
Customer for the purpose of development and mass production of any semiconductor
products.

SECTION 5. CONFIDENTIALITY

The parties acknowledge and agree that during the course of the performance of
the mutual obligations hereunder, each party will occasionally deliver to the
other party certain information (including proprietary information, technical
data, trade secrets, know-how, research, software, developments, inventions,
processes, design flows, methods, methodologies, formulas, algorithms,
technologies, designs, drawings, engineering, hardware configuration
information, yield data or other similar information, and related documentation
and information) which the disclosing party deems to be confidential or
proprietary. Such information shall be considered and treated hereunder as
proprietary and confidential information if it is identified as "Confidential"
or "Proprietary" (hereinafter referred to as "CONFIDENTIAL INFORMATION"): (i) by
stamp or legend if communicated in writing or other tangible form, or (ii)
orally at the time of disclosure with a written confirmation within thirty days
describing the Confidential Information communicated orally. All restrictions as
to use and disclosure shall apply during such thirty day period. Except as
permitted hereunder, the receiving party shall not use or disclose the
Confidential Information of the disclosing party. Any recipient of Confidential
Information disclosed pursuant to this Agreement shall hold the Confidential
Information in strictest confidence and shall protect the Confidential
Information by using the same degree of care, but no less than a reasonable
degree of care, to prevent the unauthorized use, disclosure, dissemination or
publication of the Confidential Information as the recipient uses to protect its
own comparable confidential and proprietary information. Any permitted
reproduction of Confidential Information shall contain all confidential or
proprietary legends which appear on the original. If the disclosing party
discloses any software, the recipient is prohibited from disassembling,
decompiling, reverse-engineering or otherwise attempting to discover or disclose
the disclosing party's source code, trade secrets, ideas or methods or concepts
embodied in such software. Subject to the licenses granted in Section 4, upon
receipt of the written request of the disclosing party, the receiving party will
return, or give written certification of the destruction of all Confidential
Information in any tangible or digital form, including all copies thereof
whether on paper or in digital form, which are in the recipient's possession or
control. The recipient will immediately notify the disclosing party in the event
of any loss or unauthorized disclosure of Confidential Information. The above
restrictions on use and disclosure shall not apply to any Confidential
Information that: (1) is in the public domain or in the possession of the
recipient without restriction at the time of receipt under this Agreement
through no wrongful act or omission of the recipient, (2) is disclosed with the
prior written approval of the disclosing party, (3) is disclosed after
********** ***** from the date of expiration or earlier termination of this
Agreement, (4) is independently developed by the recipient without breach of
this Agreement which independent development is supported by reasonable
contemporary evidence, (5) becomes

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       6

<PAGE>   7
known to the recipient from a source other than the disclosing party without
breach of this Agreement by the recipient or any other wrongful act or omission
by recipient or any third party; or (6) is required to be disclosed pursuant to
law, provided the recipient uses reasonable efforts to give the disclosing party
reasonable notice of such required disclosure sufficient to give the disclosing
party the opportunity to contest such disclosure. The obligations of
confidentiality shall survive the expiration or sooner termination of this
Agreement for a period of ********** ***** thereafter. Disclosing party assumes
no responsibility or liability whatever under this Agreement for any use of
Confidential Information by the recipient or its agents. Nothing in this
Agreement shall restrict recipient's discretion to transfer or assign its
personnel, providing the obligations of recipient under this Agreement are
otherwise met. Subject to the provisions of Section 4, either party shall be
free to use for any purpose the "residuals" resulting from access to or work
with such Confidential Information, provided that such party shall maintain the
confidentiality of the Confidential Information as provided herein. The term
"residuals" means information in non-tangible form, which may be retained in the
memories (without intentional memorization) by persons who have had access to
the Confidential Information, including ideas, concepts, know-how or techniques
contained therein. Neither party shall have any obligation to limit or restrict
the assignment of such persons or to pay royalties for any work resulting from
the use of residuals. Each party hereto recognizes and agrees that there is no
adequate remedy at law for a breach of this Section 5, that such a breach would
irreparably harm the disclosing party and that the disclosing party shall be
entitled to seek equitable relief (including, without limitation, injunctions)
with respect to any such breach or potential breach in addition to any other
remedies. PDF Solutions acknowledges that Confidential Information disclosed by
Customer may include the information of ****, and some employees of **** will
participate in the ****. Customer shall be liable for the performance of
employees of **** in the **** in performing under this Agreement and also be
liable for the confidentiality obligation of **** with respect to the
Confidential Information disclosed by PDF Solutions. The parties agree that the
MUTUAL NON-DISCLOSURE AGREEMENT among PDF Solutions, Customer and **** dated the
********** (NDA) shall be superseded by this Agreement, provided, however, that
any of the Confidential Information exchanged by the parties under the NDA shall
be treated as and included in the Confidential Information under this Agreement.

SECTION 6. REPRESENTATIONS AND WARRANTIES

        6.1 Corporate Warranties. Each party hereby represents and warrants to
the other party that: (i) it is duly organized, validly existing and in good
standing under the laws of the jurisdiction in which it was organized, (ii) the
person executing this Agreement on behalf of each party is duly authorized to
bind such party to all terms and conditions of this Agreement, (iii) this
Agreement, when executed and delivered by each party, will be the legal, valid,
and binding obligation of such party, enforceable against it in accordance with
its terms, and (iv) the execution, delivery and performance of this Agreement by
each party does not and will not conflict with or constitute a breach or default
under such party's charter documents, delegations of authority, or any material
agreement, contract or commitment of such party, or require the consent,
approval or authorization of, or notice, declaration, filing or registration
with, any third party or governmental or regulatory authority.

        6.2 Infringement. PDF Solutions warrants that it is not aware of
infringement or alleged infringement of its deliverables under third parties'
valid worldwide intellectual property rights.

        6.3 Disclaimer of Warranties. THE WARRANTIES STATED IN THIS SECTION 6
ARE THE PARTIES' SOLE AND EXCLUSIVE WARRANTIES PERTAINING TO THE SUBJECT MATTER
OF THIS AGREEMENT, AND EACH PARTY HEREBY

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       7
<PAGE>   8

DISCLAIMS ANY OTHER WARRANTY, EXPRESS OR IMPLIED, WRITTEN OR ORAL, INCLUDING,
WITHOUT LIMITATION, ANY WARRANTY OF TITLE, MERCHANTABILITY, NON-INFRINGEMENT OR
FITNESS FOR A PARTICULAR PURPOSE. NOTHING UNDER THIS AGREEMENT, OR THE STATEMENT
OF WORK OR PROJECT SHALL BE DEEMED TO BE A WARRANTY AS TO THE OUTCOME OF ANY
PROJECT OR THE EFFICACY OF ANY RECOMMENDATIONS MADE BY PDF SOLUTIONS. NOTHING
UNDER THIS AGREEMENT OR THE STATEMENT OF WORK SHALL BE DEEMED TO CREATE ANY
LIABILITY ON THE PART OF EITHER PARTY WITH RESPECT TO THE OUTCOME OF A PROJECT
OR ANY ACTIONS TAKEN BY CUSTOMER OR THE PDF SOLUTIONS AS A CONSEQUENCE OF THE
OTHER PARTY'S RECOMMENDATIONS.

SECTION 7. INDEMNIFICATION. PDF Solutions shall defend or settle at PDF
Solutions' expense any claim ("Claim") brought against Customer that the
Services and Technology and/or any tangible or intangible delivered in
connection therewith impermissibly contains third party's proprietary rights,
trade secrets, or copyrighted materials or that Customer's use of any such
materials, as permitted hereunder by the ******** in the Permitted Field of Use,
infringes any patent issued in Japan; provided that such indemnification shall
not extend (a) to any infringement by Customer's designs or products, (b) to any
infringement resulting from any infringement contained in any technical data,
Manufacturing Designs, Mask Sets or materials or reports or information provided
by Customer. The indemnification obligations set forth in this Section 7 are
subject to the conditions that the Customer: (i) gives prompt written notice of
the Claim to the PDF Solutions, (ii) gives the PDF Solutions the exclusive
authority to control and direct the defense or settlement of such Claim,
provided that the PDF Solutions does not take any positions that may be
prejudicial to Customer and (iii) gives the PDF Solutions, at Customer's own
expense (except for the value of the Customer's employees' time), all reasonably
necessary information and reasonable assistance with respect to such Claim. PDF
Solutions shall pay all amounts paid in settlement and all damages and costs
awarded with respect to such Claim. PDF Solutions will not be liable for any
costs or expenses incurred without its prior written authorization. In the event
of any Claim under this Section 7, PDF Solutions shall have the option, at its
election, to (a) obtain a license to permit continued use of the allegedly
infringing item or practice, (b) modify the allegedly infringing item or
practice to avoid continued infringement provided the modified item or practice
is substantially equivalent, (c) procure or provide a substantially equivalent
substitute for the allegedly infringing item or practice or (d) if PDF Solutions
is unable to achieve (a), (b) or (c) after reasonable efforts, then PDF
Solutions may require that Customer cease use of the infringing item or practice
as soon as feasible and terminate this Agreement and refund all Incentive Fees
paid by Customer to PDF Solutions.

SECTION 8. LIMITATION OF LIABILITY

THE LIABILITY OF EITHER PARTY AND OF SUCH PARTY'S OFFICERS, DIRECTORS,
EMPLOYEES, CONTRACTORS AND AGENTS, TAKEN AS A WHOLE, WHETHER IN TORT, CONTRACT
OR OTHERWISE, AND NOTWITHSTANDING ANY FAULT, NEGLIGENCE, STRICT LIABILITY OR
PRODUCT LIABILITY OF SUCH PARTY OR OF ITS OFFICERS, DIRECTORS, EMPLOYEES, OR
AGENTS OR FAILURE OF ESSENTIAL PURPOSE, WITH REGARD TO ANY SERVICES OR OTHER
ITEMS FURNISHED UNDER THIS AGREEMENT SHALL IN NO EVENT EXCEED THE AGGREGATE
COMPENSATION PAID BY CUSTOMER TO PDF SOLUTIONS HEREUNDER. NOTWITHSTANDING
ANYTHING TO THE CONTRARY IN THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE
LIABLE FOR ANY CLAIM FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       8

<PAGE>   9

CONSEQUENTIAL DAMAGES, COVER OR ANY LOSS OF DATA, PROFIT, REVENUE OR USE UNDER
ANY THEORY OF LAW OR FOR ANY CAUSE OF ACTION.

SECTION 9. EXPORT CONTROL

        9.1 Both parties acknowledge that certain technical information
disclosed by PDF Solutions to Customer hereunder may be subject to the export
control laws or regulations of the U. S. A. PDF Solutions shall be responsible
for obtaining any export license required under such laws or regulations with
respect to the export of any Confidential Information, and shall promptly notify
Customer in writing the technical information which is subject to the
restrictions under such laws or regulations as well as the type of license to
have been obtained.

        9.2 In the event that a Japanese governmental authorization is required
for the disclosure of technical information under this Agreement, Customer will
not disclose such information until Customer obtains such authorization.

SECTION 10. MISCELLANEOUS

        10.1 Publicity. Neither party shall disclose the existence of or the
terms of this Agreement to any third party, or in any manner advertise or
publish statements to such effect, without the prior written consent and mutual
agreement as to the content, medium, and manner of the public announcement of
the other party. Notwithstanding the above, should one of the parties be
required by laws or regulations to disclose either the existence or terms of
this Agreement to a court of law, a governmental agency, an auditor, a bank, or
any person such party may do so without the prior written consent of the other
party provided that the disclosing party: (i) notifies the recipient of the
confidential nature of the information, (ii) requests confidential treatment of
such information, (iii) limits the disclosure to only such information as is
required under the circumstances, and (iv) delivers prompt notice to the other
party of such requested or actual disclosure.

        10.2 Assignment. Neither party shall assign any portion of its rights,
duties, or obligations under this Agreement without the prior written consent of
the other party, which consent will not be unreasonably withheld or delayed,
provided that PDF Solutions may utilize the services of consultants and
subcontractors to perform hereunder with the prior written consent of Customer.

        10.3 Changes. No modification to this Agreement will be binding unless
in writing and signed by a duly authorized representative of each party. Change
orders affecting any Scope of Services and Technology will not be effective
until reviewed and approved in writing by PDF Solutions and Customer. PDF
Solutions will submit to Customer a report on how the proposed changes will
affect the current Services and Technology including the effect on the time
schedule and cost estimates. The parties will have no obligation to proceed with
changed work until both parties have approved the change in writing.

        10.4 Notices. All notices or corres-pondence pertaining to this
Agreement shall be in writing, delivered by either first class mail with receipt
or by facsimile with receipt. Such notice shall be effective upon the earlier of
actual receipt or the expiration of three business days following the date of
mailing, or such alternative address the parties may designate in the future.

        10.5 Independent Contractors. PDF Solutions and Customer shall perform
their obligations under this Agreement as independent contractors, and nothing
contained in this Agreement shall be construed to create or imply a joint
venture, partnership, principal-agent or employment relationship between the
parties. Neither party shall take any action or permit any action to be taken on
its behalf which purports to be done in the name of or on behalf of the other
party and shall have no power or authority to bind the other party to assume or
create any obligation or responsibility express or implied

                                       9
<PAGE>   10

on the other party's behalf or in its name, nor shall such party represent to
any one that it has such power or authority. Each party shall be responsible for
damages to tangible property or personal injury cause by the gross negligence or
willful misconduct of the employees or agents of such party.

        10.6 Force Majeure. Neither party shall be liable to the other party for
any loss, damage, or penalty arising from delay to the extent due to causes
beyond its reasonable control including acts of God, acts of government, war,
riots, or embargoes.

        10.7 Severability. If any term or provision of this Agreement is
determined to be invalid or unenforceable for any reason, it shall be adjusted
rather than voided, if possible, to achieve the intent of the parties to extent
possible. In any event, all other terms and provisions shall be deemed valid and
enforceable to the maximum extent possible.

        10.8 Insurance. PDF Solutions shall carry Workers' Compensation and
Comprehensive General Liability Insurance (including Products, Contractual, and
Automobile Liability) having limits of liability not less than $1 million
combined single limit per occurrence for bodily injury, including death and
property damages, prior to performing any services on Customer's site.

        10.9 Disputes. If any claim or controversy arises out of this Agreement,
the parties shall first make a good faith attempt to resolve the matter through
a designated executive officer. The officers having cognizance of the subject
matter of the Agreement for each of the parties shall first meet and make a good
faith attempt to resolve such controversy or claim. In the event such good faith
negotiation fails to settle any dispute within ********** days from notice of
such dispute, the controversy shall be settled by binding arbitration by one or
three arbitrators, (if three are used, each party shall select one, and the
third shall be selected by mutual agreement of the parties), conducted in Santa
Clara County, California, if Customer initiates the proceedings, and in Osaka,
Japan, if PDF Solutions initiates the proceeding, and in accordance with the
Commercial Arbitration Rules of the American Arbitration Association and
judgment upon the award rendered by the arbitrator(s) may be entered by any
court having jurisdiction thereof. The arbitrator(s) shall not be empowered to
award damages in excess of, and/or in addition to, actual damages, and the
arbitrator(s) shall deliver a reasoned opinion in connection with his/her/their
decision. Nothing herein, however, shall prohibit either party from seeking
injunctive relief if such party would be substantially prejudiced by a failure
to act during the time that such good faith efforts are being made to resolve
the claim or controversy. In the event either party seeks injunctive relief, the
parties agree that jurisdiction will be before a state or district court seated
in Santa Clara County, California.

        10.10 Governing Law. This Agreement and any and all disputes arising
hereunder shall be governed by the internal laws of the State of California,
without regard to choice of law principles. This Agreement is prepared and
executed and shall be interpreted in the English language only, and no
translation of the Agreement into another language shall have any effect. The
parties agree that the United Nations Convention on Contracts for the
International Sale of Goods (1980) is specifically excluded from and shall not
apply to this Agreement.

        10.11 Waiver. The failure of any party hereto to enforce at any time any
of the provisions of this Agreement or to require at any time performance by the
other party of any of the provisions of this Agreement, or any part hereof,
shall not be construed to be a waiver of said provision or to effect the right
of any party to enforce each and every provision in accordance with the terms of
this Agreement.

        10.12 Interpretation. In the event that any term of the Scope of
Services and Technology conflicts with the terms of this Agreement, the terms of
this Agreement shall take precedence.

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       10

<PAGE>   11

        10.13 Non-Solicitation. Customer shall not actively solicit or influence
or attempt to influence any person employed by PDF Solutions to terminate or
otherwise cease his or her employment with PDF Solutions or become an employee
of Customer. PDF Solutions shall not actively solicit or influence or attempt to
influence any person employed by Customer to terminate or otherwise cease his or
her employment with Customer or become an employee of PDF Solutions.

        10.14 Drafter. Neither party will be deemed the drafter of this
Agreement, which Agreement will be deemed to have been jointly prepared by the
parties. If this Agreement is ever construed, whether by a court or by an
arbitrator, such court or arbitrator will not construe this Agreement or any
provision hereof against any party as drafter.

        10.15 Entire Agreement. The parties acknowledge that PDF Solutions is
not providing or licensing to Customer under this Agreement any software
programs or products and anticipate that they will enter into a Software
Evaluation and/or Software License Agreement related to the subject matter
hereof. Such agreement shall also not be affected by this Agreement. Except for
such software agreements, this Agreement shall constitute the entire agreement
between the parties with respect to the subject matter hereof and: (i) shall
supersede all prior contemporaneous oral or written communications, proposals
and representations with respect to its subject matter, and (ii) shall prevail
over any conflicting or additional terms of any statement of work, quote, order
acknowledgment or similar communication between the parties during the term of
this Agreement.

        10.16 Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original, but all of which together will constitute
one and the same instrument.

        10.17 Exhibits. Exhibits "A" and "B" attached hereto are incorporated
herein by this reference as if fully set forth herein.

PDF SOLUTIONS, INC., A CALIFORNIA CORPORATION

By: /s/ John K. Kibarian
   --------------------------------
Name: John K. Kibarian
     ------------------------------
Title: President & CEO
      -----------------------------
Date:   **********
     ------------------------------

CUSTOMER

By: /s/ Seiji Ueda
   --------------------------------
Name: Seiji Ueda
     ------------------------------
Title: Director
      -----------------------------
Date:   **********
     ------------------------------

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       11

<PAGE>   12

                 EXHIBIT "A" TO INTEGRATION TECHNOLOGY AGREEMENT
                        SCOPE OF SERVICES AND TECHNOLOGY
--------------------------------------------------------------------------------

PERMITTED FIELD OF USE

PDF Solutions agrees to provide Customer with **********************************
**************************************************************.  The Agreement,
and all licenses granted by PDF Solutions to Customer under the Agreement,
extends only *******************************************************************
*********.

PROJECT PHASES & DESCRIPTION

The project is described below in the following three phases. Phases may be
amended upon written notice to more appropriately achieve the targeted project
goals.

<TABLE>
<CAPTION>
------------- ------------------------------------------------- ----------------------
PROJECT PHASE                 GENERAL WORK STEPS                  ESTIMATED DURATION
------------- ------------------------------------------------- ----------------------
<S>           <C>                                               <C>
**********    ***********************************************        **********
**********    ***********************************************        **********
              ***********************************************        **********
              ***********************************************
              ***********************************************

------------- ------------------------------------------------- ----------------------
**********    ***********************************************        **********
**********    ***********************************************        **********
              ***********************************************        **********
              ***********************************************
              ***********************************************

------------- ------------------------------------------------- ----------------------
**********    ***********************************************        **********
**********    ***********************************************        **********
              ***********************************************        **********
              ***********************************************
              ***********************************************

------------- ------------------------------------------------- ----------------------
</TABLE>

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       12
<PAGE>   13

                 EXHIBIT "A" TO INTEGRATION TECHNOLOGY AGREEMENT
                        SCOPE OF SERVICES AND TECHNOLOGY
--------------------------------------------------------------------------------

DELIVERABLES

PDF Solutions agrees to provide Customer the following deliverables:

<TABLE>
<CAPTION>
----------- ----------------------------------------------------------------
  PHASE                             DELIVERABLE
----------- ----------------------------------------------------------------
<S>         <C>
**********  **************************************************************
**********  **************************************************************
            **************************************************************

----------- ----------------------------------------------------------------
**********  **************************************************************
**********  **************************************************************
            **************************************************************

----------- ----------------------------------------------------------------
**********  **************************************************************
**********  **************************************************************
            **************************************************************

----------- ----------------------------------------------------------------
</TABLE>

PROJECT ACCOUNTABILITY

PDF Solutions will maintain an engagement manager to lead the project effort
throughout the duration of the project. PDF Solutions' engagement manager
currently assigned to the project is **********. Customer will also maintain a
project leader to lead the project effort and Customer team. ********** will
serve as the primary point of contact for Customer's project leader or other
Customer representatives regarding project status and updates.

REPORTS AND DOCUMENTATION

PDF Solutions agrees to provide at minimum ***** updates to Customer's Project
Leader. PDF Solutions will provide a formal presentation at the conclusion
***************.

REQUIREMENTS FROM CUSTOMER

To assist in the success completion of the project, Customer's cooperation to
support the following as reasonably required by PDF Solutions:

- Business Resources: Secure and private office space (with 24 hour access) and
  other customary and reasonable business resources as required. Reasonable and
  customary communication and business resources including, but is not limited
  to, international access telephones, multiple analog lines, international
  access fax machines and access to a photocopier.

- Computing Resources: Customary and reasonable computing resources as required.

- CVs: Customer agrees to run PDF Solution's characterization vehicles.

- Engineering Resources: Customer's engineering resources as required.

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       13
<PAGE>   14

GENERAL

Customer agrees to pay *** types of fees associated with the services and
technologies rendered with the Integration Technology Agreement.

1. A fixed fee ("Fixed Fee") component, and

2. **********

FIXED FEE

PDF Solutions shall invoice Customer the Fixed Fee on a monthly basis. The Fixed
Fee rates will be as follows:

1. *****************************************************************************
   ******************************************.
2.

Customer shall pay such invoices in accordance with this Agreement. If the term
of this Agreement is extended with prior written approval, both parties may
elect to continue services under this Agreement at a Fixed Fee ***************.

INCENTIVE FEE

PDF Solutions may earn **************** as follows:

<TABLE>
<CAPTION>
--- -------------- -------------- ------------------------------------------
    INCENTIVE FEE   INCENTIVE FEE  INCENTIVE FEE MILESTONE OBJECTIVE(S)
      DUE DATE          AMOUNT
--- -------------- -------------- ------------------------------------------
<S> <C>            <C>            <C>
 1  **********              ***** ***************************************
                                  ***************************************
                                  ***************************************
                                  ***************************************

--- -------------- -------------- ------------------------------------------
 2  **********             *****  ***************************************
                               *  ***************************************
                                  ***************************************
                                  ***************************************

--- -------------- -------------- ------------------------------------------
 3  **********             *****  ***************************************
                               *  ***************************************
                                  ***************************************
                                  ***************************************

--- -------------- -------------- ------------------------------------------
</TABLE>

**************************************

Customer's obligation to pay the Incentive Fee shall be contingent on
satisfaction of the applicable milestone objective(s). PDF Solutions cannot
pre-earn any incentive; each milestone must be achieved during the time frame
applicable to such incentive payment. Should conditions beyond the control of
PDF Solutions result in an inability to achieve incentive(s) including, but not
limited to, delays in Customer

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
<PAGE>   15

process roll-out plans, both parties agree to adjust either the Incentive Fee
milestones, Incentive Fee deadlines or both as required.

PRODUCT VOLUME EXCLUDED FROM INCENTIVE FEE CALCULATIONS

The following wafers shall be excluded from the calculation of the defect
density in determining Incentive Fees:

- Mis-processed wafers

- Wafers adversely affected by equipment failures or malfunctions

- Wafers adversely affected by non-qualified PM (preventative maintenance)
  adjustments. Non-qualified means new equipment introduced but not verified to
  process tolerances. Customer and PDF Solutions agree to review the
  qualification process within forty-five (45) days of Effective Date. Customer
  may elect not to make any changes suggested by PDF Solutions that are deemed
  unreasonable or beyond Customer's control.

- Zero yielding wafers traceable to equipment failures, malfunction, or PM cycle
  dependency.

- Operator errors

- Mishandled wafers during processing or test.

- Scrapped wafers

- Failures caused by tester malfunction, test program inadequacy, or measuring
  beyond the capability of the tester.

If products under this Agreement contains a design *****************************
**************************************************

********************************************************************************
********************************************************************************
********************************************************************************
********************************************************************************

Wafers included or excluded in the yield calculations may be modified provided
both Customer's designated Project Manager and PDF Solutions' designated
Engagement Manager agree to the modifications in writing.

YIELD MODEL

For the purposes of this Agreement, the yield model equation used in determining
Incentive Fees when appropriate will be the ************************************
******************************.

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]