Document:

Exhibit 10.1

 

 

CONTRIBUTION
AGREEMENT

 

among:

 

SPECIALTYSEMI,
INC.,

a Delaware corporation;

 

CONEXANT
SYSTEMS, INC.,

a Delaware corporation;

 

and

 

CARLYLE
CAPITAL INVESTORS, L.L.C.,

a Delaware limited liability
company.

 

 

Dated as of February 23, 2002

 

 

 

Confidential
treatment is being requested for portions of this document.  This copy of
the document filed as an exhibit omits the confidential information subject to
the confidentiality request.  Omissions are designated by the symbol
[...***...].  A complete version of this document has been filed
separately with the Securities and Exchange Commission.

 

 

CONTRIBUTION
AGREEMENT

 

THIS
CONTRIBUTION AGREEMENT (this “Agreement”) is
entered into as of February 23, 2002, by and among:  SPECIALTYSEMI, INC., a Delaware corporation
(the “Company”);
CONEXANT SYSTEMS, INC., a Delaware corporation (“Conexant”); and CARLYLE CAPITAL
INVESTORS, L.L.C., a Delaware limited liability company (“Carlyle”). Certain
capitalized terms used in this Agreement are defined in Exhibit A.

 

RECITALS

 

WHEREAS,
the Conexant Group Companies currently conduct, and historically have
conducted, semiconductor wafer fabrication and manufacturing operations at
Conexant’s Newport Beach California facilities (the “Wafer Fabrication Operations”),
which operations include (i) the semiconductor wafer fabrication and probing
operations located at the facilities surrounding, or physically housed in,
either in part or in whole, Buildings 501, 503 and 505 located at 4311 Jamboree
Road, Newport Beach, California (buildings 503 and 505 being referred to
collectively as the “El
Capitan Buildings”) and (ii) certain research and development,
design support service and other support operations (“Wafer Fabrication Support
Operations”);

 

WHEREAS,
(i) Conexant wishes to contribute to the Company, and the Company wishes
Conexant to contribute to the Company, all of the membership interests of
Newport Fab, LLC, a Delaware limited liability company and a wholly owned
Subsidiary of Conexant (“Newport
Fab LLC”), and the Warrant (as defined below) and (ii) Carlyle
wishes to contribute to the Company cash in the amounts specified herein, each
in exchange for shares of Common Stock of the Company as part of a plan
pursuant to Section 351 of the Code; and

 

WHEREAS,
in connection with the transactions contemplated by this Agreement, (i) the
Company, Conexant and Carlyle will enter into (1) a Stockholder Agreement in
the form of Exhibit B
hereto (the “Stockholders
Agreement”) which, among other things, sets forth the agreements
relating to the operations of the Company and the rights and obligations of
Conexant and Carlyle as stockholders of the Company and (2) a Registration
Rights Agreement in the form of Exhibit C hereto (the “Registration Rights Agreement”) setting
forth certain rights of registration of the Company’s capital stock; (ii) the
Company, Newport Fab LLC and Conexant will enter into: (1) one or more License
Agreements in the form agreed to by both parties (the “License Agreements”) pursuant to which,
among other things, Conexant will transfer or license certain technology and
intellectual property rights to the Company; (2) a Long Term Supply Agreement
in the form of Exhibit D
hereto (the “Long-Term
Supply Agreement”) pursuant to which, among other things, the Company
shall supply wafers to Conexant; (3) Real Property Lease Agreements in the
forms agreed to by both parties (the “Real Property Lease Agreements”) pursuant to
which, among other things, the Company will lease the wafer fabrication
facilities located in Newport Beach, California from Conexant; (4) a Transition
Services Agreement in the form agreed to by both parties (the “Transition Services Agreement”)
pursuant to which Conexant and the Company will agree to the sharing and
transitioning of certain support services related to the Wafer Fabrication
Operations; (5) an IT Services Agreement in the form agreed to by the parties
(the “IT Services
Agreement”) pursuant to which Conexant will provide certain
information technology support services to the Company, and (6) an Employee
Matters Agreement in the form of Exhibit E hereto (the “Employee

 

1

 

Matters Agreement”); (iii)
the Company will enter into Employment Agreements with certain key employees of
Conexant listed on Schedule 6.8(a) to be hired by the Company in the form
agreed upon by the parties (the “Key Employees”); and (iv) the Company and Carlyle will
enter into (1) a Management Services Agreement in the form of Exhibit F hereto (the
“Carlyle Management
Services Agreement”) pursuant to which Carlyle will perform
certain management services for the Company, and (2) agreements in the form of Exhibit G hereto (the
“Carlyle Management
Rights Agreements”), pursuant to which Carlyle will have certain
rights with respect to management of the Company; and (v) the Company and
Conexant will enter into (1) a Management Services Agreement in the form of Exhibit H hereto (the
“Conexant Management
Services Agreement”) pursuant to which Conexant will perform
certain management services for the Company and (2) agreements in the form of Exhibit I hereto (the
“Conexant Management
Rights Agreements” and, together with the Carlyle Management
Rights Agreements, the “Management
Rights Agreements”) pursuant to which Conexant will have certain
rights with respect to management of the Company.

 

AGREEMENT

 

NOW,
THEREFORE, the parties to this Agreement, intending to
be legally bound, agree as follows:

 

1.             CONTRIBUTION
OF ASSETS; RELATED TRANSACTIONS.

 

1.1          Contributions
by Conexant. Conexant shall contribute, assign, transfer, convey and
deliver to the Company, and the Company shall accept from Conexant, at the
Closing (as defined in Section 1.7), good and valid title to the Membership
Interests, which Membership Interests represent one hundred percent (100%) of
the membership and other interests in Newport Fab LLC, free and clear of any
Encumbrances, on the terms and subject to the conditions set forth in this
Agreement. In addition, at the Closing, Conexant shall issue to the Company a
warrant (the “Warrant”) to purchase up to an aggregate of 2,900,000 shares of
Conexant’s Common Stock (the “Warrant Shares”). The Warrant shall (i) be
exercisable according to a schedule agreed upon by the parties, (ii) have an
exercise price per share agreed upon by the parties, (iii) expire on a date
agreed upon by the parties, and (iv) be in such form, and contain such other
terms and conditions (including without limitation provisions regarding
registration of the shares issuable upon exercise of the Warrant), as may be
agreed to by the parties.

 

1.2          Cash
Contribution by Carlyle. Carlyle shall contribute to the Company, and the
Company shall accept from Carlyle, at the Closing, cash in the amount of
fifty-two million dollars ($52,000,000). Such cash contribution shall be made
by wire transfer of immediately available funds made payable to the order of
the Company.

 

1.3          Consideration
for Membership Interests and Cash.

 

(a)           Subject
to the satisfaction or waiver of the conditions set forth in Sections 5 and 6,
as consideration for the contribution of the Membership Interests and the
Warrant by Conexant to the Company set forth in Section 1.1 above, the Company
shall:

 

2

 

(i)            at
the Closing, issue 4,500,000 shares of Class B Common Stock, par value $0.001
per share, of the Company, to Conexant, representing 45.0% of the total shares
of Common Stock of the Company outstanding immediately after the Closing;

 

(ii)           at
the Closing, pay to the order of Conexant, by wire transfer of immediately
available funds, cash in the amount of twenty million dollars ($20,000,000)
(the “Cash Consideration”);

 

(iii)         at the Closing, guarantee the timely
discharge or satisfaction by Newport Fab LLC of the Assumed Liabilities;

 

(iv)          pay
to the order of Conexant, by wire transfer of immediately available funds, cash
equal to the amount of the Earn-Out Payment (as and to the extent provided by
Section 1.4), if and when earned; and

 

(v)            pay
to the order of Conexant, by wire transfer of immediately available funds, cash
equal to the amount of the Royalties (as and to the extent provided by Section
1.5), if and when earned.

 

(b)           Subject
to the satisfaction or waiver of the conditions set forth in Sections 5 and 6,
as consideration for the cash contribution of Carlyle to the Company set forth
in Section 1.2 above, the Company shall issue 5,500,000 shares of Class A
Common Stock of the Company to Carlyle, representing 55.0% of the total shares
of Common Stock of the Company outstanding immediately after the Closing.

 

1.4          Earn-Out
Payments.

 

(a)           As
partial consideration for the contribution by Conexant to the Company of the
Membership Interests and the Warrant as contemplated by Section 1.1(a), the
Company shall pay to Conexant cash in the amount of ten million dollars
($10,000,000) (the “Earn-Out Payment”), as provided
in Section 1.4(d), if either:

 

(i)            the
Specialtysemi Group Companies’ total Revenue (as defined in Section 1.4(b))
during the period commencing on the first anniversary of the Closing Date and
ending 12 months thereafter is equal to or greater than eighty-five million
dollars ($85,000,000); or

 

(ii)           the
Specialtysemi Group Companies’ total Revenue during the period commencing on
the second anniversary of the Closing Date and ending 12 months thereafter is
equal to or greater than one hundred five million dollars ($105,000,000).

 

(b)           For
purposes of this Section 1.4, “Revenue” for any period shall
mean that revenue, determined in accordance with GAAP, including nonrecurring
engineering revenue (“NRE
Revenue”), of the Specialtysemi Group Companies, derived during
such period from sales of products (including all revenue derived from
engineering lots (“E-Lot
Revenue”)) and services of the types produced by or provided
through, in each case either currently or in the future, the Wafer Fabrication
Operations as such operations are currently conducted by the Conexant Group
Companies and as will be conducted by the Specialtysemi Group Companies

 

3

 

after the
Closing (taking into account any revenue resulting from the expansion of the
capacity of Wafer Fabrication Operations located in the El Capitan Buildings
after the Closing) as well as any revenue derived from sales to customers of
the Specialtysemi Group Companies through the Specialtysemi Group Companies’
other fabrication operations as a result of the Specialtysemi Group Companies
not being able to satisfy such customers from the then manufacturing capacity
of the Wafer Fabrication Operations (all such products and services being
referred to herein as the “Products”);
provided however that Revenue
shall exclude: (i) any revenue of the Specialtysemi Group Companies derived or
earned from the sale of Products to (1) Conexant, (2) any Person who is an
Affiliate of Conexant as of the date hereof, or (3) any Affiliate of Conexant
that is formed by Conexant after the date hereof from Conexant’s current assets
and operations, (ii) any revenue of the Specialtysemi Group Companies derived
from businesses that are acquired by the Specialtysemi Group Companies after
the Closing Date (to the extent such businesses are not used to increase the
capacity of the Wafer Fabrication Operations located in the El Capitan
Buildings), (iii) any revenue of the Specialtysemi Group Companies derived from
assets acquired (other than equipment acquired pursuant to ordinary course
capital expenditures and other than any assets that are employed in the Wafer
Fabrication Operations located in the El Capital Building), or Subsidiaries
formed (to the extent such Subsidiaries are not deriving revenue from the sale
of Products), by the Specialtysemi Group Companies after the Closing, (iv) any
amounts received or realized in respect of dispositions of assets (other than
sales of Products) or any other non-recurring or extraordinary items, (v) mask
revenues, and (vi) revenues derived from the sale of Products pursuant to the
Long-Term Supply Agreement; provided that all revenue derived from the sale of
Products to Persons other than Conexant, Affiliates of Conexant as of the date
hereof and Affiliates of Conexant formed by Conexant after the date hereof from
Conexant’s current assets and operations pursuant to the Long-Term Supply
Agreement at the Basic Price (as defined in the Long-Term Supply Agreement)
shall be included in the definition of “Revenue.”

 

(c)           In
the event Conexant shall be entitled to the Earn-Out Payment under Section
1.4(a)(i), then no further Earn-Out Payment shall be due under Section
1.4(a)(ii), and the total amount of the Earn-Out Payment due under Section
1.4(a) shall not exceed ten million dollars ($10,000,000).

 

(d)           In
the event Conexant shall be entitled to the Earn-Out Payment, the Company shall
make such payment to Conexant no later than thirty (30) days following the date
on which the Company has completed audited financial statements of the Company
(which will include the revenue of Newport Fab LLC) for the year to which such
payment applies (but in any event no later than April 15 of the year following
the year to which such payment applies). In the event such payment is not to be
made by the Company, then the Company shall provide to Conexant, on the dates
set forth in the preceding sentence, a report (the “Revenue Report”)
reflecting the amount and sources (on a product-by-product basis) of Revenue
received by the Specialtysemi Group Companies for the calendar year to which
the Revenue Report relates. Conexant shall have thirty (30) days from the date
the Revenue Report is received by Conexant to dispute the amount of Revenue
reflected thereon. If Conexant disputes the amount of Revenue reflected on the
Revenue Report, Conexant and the Company shall negotiate in good faith to
reconcile their differences. If such dispute has not been resolved within
thirty (30) days after the Company’s receipt of notice of such dispute, the
parties shall submit the item(s) remaining in dispute to a mutually acceptable
Independent Accounting Firm, which shall, as

 

4

 

promptly as practical
but in no event later than thirty (30) calendar days after such submission,
determine the total Revenue received by the Specialtysemi Group Companies
during the period in dispute. The Company shall provide the Independent
Accounting Firm access to all books and records of the Specialtysemi Group
Companies necessary or reasonably requested by the Independent Accounting Firm
and will assist the Independent Accounting Firm in completing their report in a
timely fashion. Such determination and report shall be final, binding and
conclusive on the parties hereto and any amount payable under this Section 1.4
shall be paid by the Company within five (5) business days thereafter. The fees
and disbursements of the Independent Accounting Firm shall be allocated equally
between Conexant and the Company.

 

1.5          Royalties.

 

(a)           As
partial consideration for the contribution by Conexant to the Company of the
Membership Interests as contemplated by Section 1.1(a), the Specialtysemi Group
Companies or any Specialtysemi Group Successor shall, subject to Section 8.10
hereof, pay to Conexant a royalty equal to five percent (5%) of the Gross
Revenue of the Specialtysemi Group Companies or any Specialtysemi Group
Successor, as applicable, derived or earned from the sale of SiGe Products; provided, however, that (i) no such
royalties will be due for sales that occur more than ten (10) years after the
Closing Date and (ii) no royalties will be due for sales by any Specialtysemi
Group Successor other than sales (directly or indirectly through any
Subsidiary) to third party customers. (As used herein, the term “sale” shall include
leases, licenses, and all other dispositions of SiGe Products but shall not
include proceeds from the disposition of SiGe Products in connection with the
sale of any business or the sale of all or substantially all of the assets of
any business or business unit.)

 

(b)           For
the purposes of this Section 1.5, “SiGe Products” shall mean each product that,
as of the Closing Date, is manufactured, or for which a prototype has been
developed, by the Wafer Fabrication Operations, in whole or in part, with the
use of silicon germanium (SiGe) specialty process technology or Intellectual
Property assigned, licensed or transferred to the Newport Fab LLC by Conexant
or any improvements to or future versions of such technology or Intellectual
Property developed by or on behalf of the Specialtysemi Group Companies or any
Specialtysemi Group Successor (other than such improvements or future versions
purchased, acquired or obtained by license by the Specialtysemi Group Companies
for value following the Closing Date); and “Gross Revenue” shall mean all revenue of the
Specialtysemi Group Companies or any Specialtysemi Group Successor, determined
in accordance with GAAP, derived or earned from sales of the SiGe Products and
including E-Lot Revenue; provided that
Gross Revenue shall exclude: (i) any revenue of the Specialtysemi Group
Companies derived or earned from the sale of SiGe Products to (1) Conexant, (2)
any Person who is an Affiliate of Conexant as of the date hereof, or (3) any
Affiliate of Conexant that is formed by Conexant after the date hereof from
Conexant’s current assets and operations, (ii) any amounts received (1) in
respect of dispositions of any property or assets other than SiGe Products, or
(2) from non-recurring or extraordinary items, (iii) mask revenues, (iv) any
NRE Revenue, (v) any incremental revenue that is earned from the sale of SiGe
Products with features that are the result of the implementation of Intellectual
Property that was not assigned, licensed or transferred to the Newport Fab LLC
by Conexant and (vi) any revenue derived from any sales pursuant to the
Long-Term Supply Agreement; provided that all revenue derived from the sale of
SiGe Products to Persons other than Conexant, Affiliates of Conexant as of the
date hereof and

 

5

 

Affiliates of
Conexant formed by Conexant after the date hereof from Conexant’s current
assets and operations pursuant to the Long-Term Supply Agreement at the Basic
Price (as defined in the Long-Term Supply Agreement) shall be included in the
definition of “Gross Revenue.”  “Specialtysemi Group Successor”
shall mean any entity that acquires all or substantially all of the assets and
properties of the Company and its Subsidiaries, taken as a whole.

 

(c)           Within
thirty (30) days after the end of each calendar quarter, the Company shall
submit to Conexant a quarterly royalty report containing a statement of the
royalties owed to Conexant under this Section 1.5 and such other information as
specified by Conexant prior to preparation of such report reasonably necessary
to show how the amount of such royalties was calculated. Payment of the
royalties owed to Conexant shall be due along with the report. The Company
shall maintain complete and accurate books and records, prepared in accordance
with GAAP, relating to all sales of SiGe Products, including purchase orders
and acknowledgments, invoices and receipts, for a period of at least five (5)
years from the date of the sale. No more than once per year, Conexant will have
the right, upon reasonable advance notice to the Company and so as not to
unduly interfere with the Specialtysemi Group Companies’ operations, to have a
mutually acceptable Independent Accounting Firm inspect and audit the
Specialtysemi Group Companies’ books and records to determine whether the
Specialtysemi Group Companies have accurately reported and paid the royalties
owed to Conexant in any one or more of the preceding two calendar years under
this Section 1.5. Notwithstanding the foregoing, Conexant shall not be entitled
to audit any year prior to the two preceding years and shall not be entitled to
audit any specific year more than once. The Company shall provide to the
Independent Accounting Firm access to all of the books and records of the
Specialtysemi Group Companies necessary or reasonably requested by the
Independent Accounting Firm and will assist the Independent Accounting Firm in
completing the audit in a timely fashion. In the event the audit reveals that
the Company owes any additional amounts to Conexant, then subject to the
Company’s right to dispute such amounts as provided below, the Company shall,
within five (5) business days of the completion of the audit, pay to Conexant,
in immediately available funds, all such amounts. Conexant shall pay the fees
and expenses of the Independent Accounting Firm in connection with any such
audit, unless the audit reveals that the Company has underreported or underpaid
the amount of royalties owed to Conexant by five percent (5%) or more over the
period of time being audited in which case the Company shall pay the fees and
expenses of the Independent Accounting Firm. Both the Company and Conexant
shall have fifteen (15) days from the date the audit is received by them to dispute
the amount of the royalties reflected thereon. If either party disputes the
amount of royalties reflected on the audit then the Company and Conexant shall
resolve such dispute in accordance with Section 10.18 hereto.

 

1.6          Sales
Taxes. Conexant shall be responsible for, and shall pay and reimburse the
Specialtysemi Group Companies, Carlyle, and/or their Affiliates (other than the
Specialtysemi Group Companies), as applicable, for, any sales taxes, use taxes,
transfer taxes, documentary charges, recording fees, stamp taxes or similar
taxes, charges, fees or expenses (collectively “Sales and Transfer Taxes”) that may
become payable in connection with the contributions of Membership Interests and
cash to the Company as contemplated hereby and the consummation of the
transactions contemplated by the Newport Fab Contribution Agreement. The
Company and Conexant shall cooperate with each other in timely making all
filings, returns, report and forms as may be required in connection with the
payment of all Sales and Transfer Taxes,

 

6

 

including but
not limited to delivering all instruments and certificates as are necessary to
minimize such Sales and Transfer Taxes and enable the other to timely comply
with the filing of any Tax Return that relates to Sales and Transfer Taxes.

 

1.7          Closing.

 

(a)           The
closing of the transactions contemplated by Sections 1.1, 1.2 and 1.3 and the
other transactions contemplated hereby (the “Closing”) shall take place at the
offices of Cooley Godward LLP, located at 4401 Eastgate Mall, San Diego,
California, at 9:00 a.m. (Pacific Standard Time) no later than the second (2nd)
business day after the last of the conditions set forth in Sections 5 and 6 has
been satisfied or waived or such other date, time or place as mutually agreed
between the parties. For purposes of this Agreement, “Closing Date” shall
mean the date as of which the Closing actually takes place.

 

(b)           At
the Closing:

 

(i)            Conexant
shall execute and deliver to the Company such endorsements, assignments and
other documents as may (in the reasonable judgment of Carlyle) be necessary or
appropriate to assign, convey, transfer and deliver to the Company the
Membership Interests;

 

(ii)           Carlyle
shall pay to the Company the sum, in cash, of $52,000,000, by wire transfer of
immediately available funds to a bank account in the United States to be
designated by the Company to Carlyle at least two business days prior to the
Closing;

 

(iii)         the Company shall pay to Conexant the sum,
in cash, of $20,000,000, by wire transfer of immediately available funds to a
bank account in the United States to be designated by Conexant to the Company
at least two business days prior to the Closing;

 

(iv)          each
of the parties to the Transactional Agreements shall execute and deliver such
agreements to the other parties thereto;

 

(v)            Conexant
and the Company shall execute and deliver to each other an Assignment and
Assumption Guarantee Agreement in the form reasonably acceptable to Conexant,
Carlyle and the Company (the “Assignment and Assumption Agreement”);

 

(vi)          the
Company shall issue to Conexant and Carlyle certificates evidencing the shares
of Common Stock contemplated by Section 1.3; and

 

(vii)         Conexant shall execute and deliver to the
Company the Warrant.

 

2.             REPRESENTATIONS
AND WARRANTIES OF CONEXANT.

 

Conexant
represents and warrants to, and for the benefit of, the Company, Carlyle and
the other Carlyle Indemnitees, as follows:

 

7

 

2.1          Due
Organization; Authority; Binding Nature of Agreements. Conexant is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware. Conexant has the requisite corporate power and
authority to own the Membership Interests, and Newport Fab LLC has the
requisite corporate power and authority to own, lease and operate the
Contributed Assets. Each of the Conexant Group Companies has the requisite
corporate power and authority to enter into, deliver, and perform its
obligations under each of the Transactional Agreements to which it is a party
and the Newport Fab Contribution Agreement; and the execution, delivery and
performance by each of the Conexant Group Companies of the Transactional
Agreements to which it is a party and the Newport Fab Contribution Agreement
have been duly authorized by all necessary action on the part of each of such
Conexant Group Company and its board of directors, and no other corporate
proceedings on the part of any of the Conexant Group Companies are necessary to
authorize the Transactional Agreements and the Newport Fab Contribution
Agreement and the transactions contemplated thereby. This Agreement and the
Newport Fab Contribution Agreement have been duly executed and delivered by
Conexant, and constitute the legal, valid and binding obligation of Conexant,
and enforceable against Conexant in accordance with their respective terms,
except as enforceability may be limited by applicable bankruptcy, insolvency or
other similar Legal Requirements affecting the enforcement of creditors’ rights
generally and by general principles of equity relating to enforceability. Upon
the execution of each of the other Transactional Agreements at the Closing,
each of such other Transactional Agreements to which any of the Conexant Group
Companies is a party will constitute the legal, valid and binding obligation of
each of the Conexant Group Companies that is a party thereto, enforceable
against such Conexant Group Company in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency or other
similar Legal Requirements affecting the enforcement of creditors’ rights
generally and by general principles of equity relating to enforceability.

 

2.2          Tangible
Assets. Newport Fab LLC owns, and has good and valid title to all of the
Contributed Assets (other than the Transferred Contracts). Except as set forth
in Part 2.2(a) of the Conexant Disclosure Schedule, all of the Contributed
Assets owned by Newport Fab LLC are owned free and clear of any Encumbrances,
other than Permitted Encumbrances. Part 2.2(b) of the Conexant Disclosure
Schedule identifies all of the Contributed Assets that are leased or licensed
to the Conexant group Companies. All material Tangible Personal Property is in
good operating condition and repair in all material respects, subject to normal
wear and tear. No Conexant Group Company has any agreement with any other
Person to sell or otherwise transfer any of the Contributed Assets or any line
of business or material asset required for the performance of Conexant’s
obligations under the Transactional Agreements, except for any sales or
transfers of finished goods. The Tangible Personal Property, collectively with
any tangible personal property owned by the Conexant Group Companies and used
in the provision of services to be provided to the Specialtysemi Group
Companies pursuant to the Transition Services Agreement and the IT Services
Agreement, constitute all of the material tangible personal property used by
the Conexant Group Companies and the Transferred Employees in the ordinary
course of conduct of the Wafer Fabrication Operations. Since January 1, 2001,
except as otherwise set forth in Part 2.2(c) of the Conexant Disclosure
Schedule, no Conexant Group Company has (i) sold, transferred or conveyed any
material tangible personal property used in the ordinary course of conduct of
the Wafer Fabrication Operations, or (ii) removed any material items of
tangible personal property from the blue shaded areas on the floor plan
building schematics for Buildings 503 and 505 located at 4311 Jamboree Road,
Newport Beach,

 

8

 

California
attached hereto as Schedule 1.1(a)(i)(2), in each case, other than the sale of
finished goods (and the raw materials and inventory comprising the finished
goods) in the ordinary course of business and the disposition of obsolete or
worn-out equipment.

 

2.3          Inventory.The Inventory is of such
quality and quantity as to be usable and saleable by the Conexant Group
Companies in the ordinary course of business, and is free of any defect or
deficiency. The levels of Inventory maintained by the Conexant Group Companies
(i) are not excessive in light of the Conexant Group Companies’ normal
operating requirements for the Wafer Fabrication Operations and (ii) are
adequate for the conduct of the Wafer Fabrication Operations as conducted by
the Conexant Group Companies in the ordinary course of business. The Inventory
to be included in the Contributed Assets shall have a book value, determined in
accordance with Conexant’s past practices, of no less than $8,000,000.

 

2.4          Contracts.

 

(a)           Part
2.4(a) of the Conexant Disclosure Schedule lists each Contract to which any Conexant
Group Company is a party and which is used in connection with or relate to the
conduct of the Wafer Fabrication Operations as currently conducted by the
Conexant Group Companies. Part 2.4(b) of the Conexant Disclosure Schedule lists
each Contract to which any Conexant Group Company is a party that relates
solely to the Wafer Fabrication Operations and which is transferable with
consent of the other party thereto by Conexant to Newport Fab LLC in connection
with the transactions contemplated by the Newport Fab Contribution Agreement
(the “Transferred
Contracts”). Each of the Transferred Contracts requires that
Conexant obtain the Consent of the other party thereto in order to be
transferred to the Newport Fab LLC. Part 2.4(c) of the Conexant Disclosure
Schedule lists each Contract to which any Conexant Group Company is a party
related in part to the Wafer Fabrication Operations (the “Shared Contracts”). The
Transferred Contracts and the Shared Contracts are collectively referred to
herein as the “Wafer Fabrication
Operations Contracts.” 
Conexant has made available to Carlyle accurate and complete copies of
all Wafer Fabrication Operations Contracts, including all amendments thereto. The
Wafer Fabrication Operations Contracts include all of the material Contracts
(other than any Contracts related to the license of intellectual property)
necessary to conduct the Wafer Fabrication Operations as such operations are
being conducted by the Conexant Group Companies as of the date hereof and
include all the material Contracts reasonably necessary to enable the
Specialtysemi Group Companies to conduct the Wafer Fabrication Operations in
the manner in which such business is currently being conducted by the Conexant
Group Companies. Each Transferred Contract is valid and in full force and
effect. Except as set forth in Part 2.4(e) of the Conexant Disclosure
Schedule: (i) no Person has violated or breached, or declared or committed any
default under, any Transferred Contract; (ii) no event has occurred that has or
would reasonably be expected to (A) result in a violation or breach of any
of the provisions of any Transferred Contract, (B) give any Person the
right to declare a default or exercise any remedy under any Transferred
Contract, (C) give any Person the right to accelerate the maturity or
performance of any Transferred Contract, or (D) give any Person the right to
cancel, terminate or modify any Transferred Contract;  (iii) the Conexant Group Companies have not
received any written notice or other communication regarding any violation or
breach of, or default under, any Transferred Contract; (iv) no Conexant Group
Company has knowingly waived any right under any Transferred Contract; and (v)
neither any Conexant Group Company nor any of its Affiliates

 

9

 

has, and to
the knowledge of Conexant no other Person has, repudiated any material
provision of any of the Transferred Contracts.

 

(b)           To
the knowledge of the Conexant Group Companies, the performance of the Transferred
Contracts will not result in any violation of or failure to comply with any
material Legal Requirement.

 

(c)           No
Person is renegotiating, or has the right to renegotiate, any amount paid or
payable to the Conexant Group Companies under any Transferred Contract or any
other term or provision of any Transferred Contract.

 

(d)           The
Conexant Group Companies have no knowledge of any basis upon which any party to
any Transferred Contract may object to (i) the assignment to the Newport
Fab LLC or the Specialtysemi Group Companies of any right under such
Transferred Contract, or (ii) the delegation to or performance by the
Specialtysemi Group Companies of any obligation under such Transferred
Contract, except for those Transferred Contracts that require the consent of
such third party thereto prior to any such assignment, delegation or
performance, all of which are identified on Part 2.4(b) of the Conexant
Disclosure Schedule.

 

2.5          Intellectual
Property.

 

(a)           Schedule
1.1(a)(vi)(2) is a complete and accurate list of all patents and patent
applications owned by the Conexant Group Companies that are primarily related
to the Process Technology used in the Wafer Fabrication Operations. Schedule
2.5(a) is a complete and accurate list of all patent and patent applications
(other than the patents and patent applications listed on Schedule
1.1(a)(vi)(2)) owned by the Conexant Group Companies related to the Process
Technology used in the Water Fabrication Operations. None of the Excluded
Patent Rights is primarily related to the Process Technology used in the Wafer
Fabrication Operations.

 

(b)           The
Newport Fab LLC owns, and has good and valid title to, all of the Transferred
Intellectual Property, free and clear of any Encumbrances other than Permitted
Encumbrances and other than licenses granted by Conexant or its predecessors or
any previous owner of the Transferred Intellectual Property prior to the date
of this Agreement.

 

(c)           Conexant
has taken reasonable steps in accordance with normal industry practice to
protect the Conexant Group Companies’ rights in the portions of the Transferred
Know-How that: (1) derive independent economic value, actual or potential, from
not being generally known to the public or to other persons who can obtain
economic value from its disclosure or use; and (2) are the subject of efforts
that are reasonable under the circumstances to maintain its secrecy. Without
limiting the foregoing, all Intellectual Property developed by any contractor
or employee of the Conexant Group Companies during the course of their
employment and constituting a part of the Transferred Intellectual Property has
been fully assigned to Conexant.

 

(d)           None
of the Transferred Patents is involved in any interference or opposition
proceeding, and, to the Knowledge of the Conexant Group Companies, no such
proceeding is being threatened with respect to any of the Transferred Patents.

 

10

 

(e)           Part
2.5(e) of the Conexant Disclosure Schedule contains a complete and accurate
list, and except as set forth in Part 2.5(e) of the Conexant Disclosure
Schedule, Conexant has provided to Carlyle or its representatives complete and
accurate copies, of all material licenses under or to the Transferred
Intellectual Property granted by the Conexant Group Companies or by Conexant’s
predecessors or any other previous owner of the Transferred Intellectual
Property. Any licenses that are no longer valid or in effect will not be
considered material for purposes of this representation and warranty. There is
no pending or, to the Knowledge of the Conexant Group Companies, threatened
dispute concerning any license listed in Part 2.5(e) of the Conexant Disclosure
Schedule.

 

(f)            Part
2.5(f) of the Conexant Disclosure Schedule contains a complete and accurate list,
and, except as set forth in Part 2.5(f) of the Conexant Disclosure Schedule,
Conexant has provided to Carlyle or its representatives complete and accurate
copies, of all material intellectual property licenses granted to the Conexant
Group Companies or, to the Knowledge of Conexant, any of their predecessors,
that relate to the Process Technology used in the Wafer Fabrication Operations
or the Design Kits and under which any of the Conexant Group Companies has
rights. Any licenses that are no longer valid or in effect will not be
considered material for purposes of this representation and warranty. There is
no pending or, to the Knowledge of the Conexant Group Companies, threatened
dispute concerning any license listed in Part 2.5(f) of the Conexant Disclosure
Schedule.

 

(g)           Part
2.5(g) of the Conexant Disclosure Schedule contains a complete and accurate
list of all software licensed to any of the Conexant Group Companies by third
parties that is used in or for and is material to the Wafer Fabrication Operations,
other than (i) software used in other parts of Conexant’s business operations,
the use of which by or on behalf of the Specialtysemi Group Companies is
addressed in the IT Transition Services Agreement and (ii) software that is
commercially available on standard terms for less than $10,000, and the
agreement or agreements pursuant to which such software is licensed to the
Conexant Group Companies. True and correct copies of such license agreements
(other than any shrinkwrap or clickwrap licenses) have been provided to Carlyle.
There is no pending or, to the Knowledge of Conexant, threatened dispute
concerning any of the Conexant Group Companies’ licenses for such software and
other copyrights.

 

(h)           As
of the Closing Date, Conexant will have full right, power and authority to
grant to the Specialtysemi Group Companies the licenses to be granted any of
the Specialtysemi Group Companies in the License Agreements. No approval,
permission or consent of any third party will be needed for Conexant to grant such
licenses.

 

(i)            Except
as set forth in Part 2.5(i) of the Conexant Disclosure Schedule, since December
31, 1998, none of the Conexant Group Companies has received any written notice
or claim alleging that the conduct of the Wafer Fabrication Operations, as
currently conducted, infringes, misappropriates, or violates any Intellectual
Property of a third party (other than any claims relating to the design,
structure, performance or functionality of specific devices or other products
manufactured at the Newport Beach Fab Facility, as opposed to the process used
to fabricate the device or product). Except as set forth in Part 2.5(i) of the
Conexant Disclosure Schedule, there is not now nor at any time since December
31, 1998 have there been any pending or, to the Knowledge of Conexant,
threatened Proceeding involving any such claims

 

11

 

or allegations.
To the Knowledge of the Conexant Group Companies, no third party is infringing,
misappropriating, or violating any of the Transferred Intellectual Property or
Licensed Intellectual Property (other than the Intellectual Property of third
parties sublicensed by Conexant to the Specialtysemi Group Companies), and
since December 31, 1998, no Conexant Group Company has asserted any claims or
initiated any Proceedings against any third party based on any such
infringement, misappropriation, or violation of the Transferred Intellectual
Property. To the Knowledge of the Conexant Group Companies, the conduct of the
Wafer Fabrication Operations, as currently conducted, does not infringe,
misappropriate, or violate any Intellectual Property of a third party (other
than Intellectual Property related to the design, structure, performance or
functionality of specific devices or other products manufactured at the Newport
Beach Fab Facility, as opposed to the process used to fabricate the device or
product).

 

(j)            The
Transferred Intellectual Property and the Licensed Intellectual Property, along
with (1) all rights granted or transferred under Transferred Contracts, (2) any
express rights granted or transferred to the Specialtysemi Group Companies, and
any implied rights the Specialtysemi Group Companies may have, under the
Long-Term Supply Agreement and other agreements relating to the supply of
products by the Specialtysemi Group Companies to Conexant, Conexant
Subsidiaries or Conexant Spin-Offs (as defined in the Long-Term Supply
Agreement), and (3) “have made” rights of Conexant, Conexant Subsidiaries and
Conexant Spin-Offs under third party Intellectual Property licenses, (i)
collectively constitute all Intellectual Property rights owned or controlled by
the Conexant Group Companies related to the Process Technology and Design Kits
currently practiced or used in the Wafer Fabrication Operations and (ii)
collectively include all Intellectual Property Rights owned or controlled by
the Conexant Group Companies that are sufficient to permit the Specialtysemi
Group Companies to conduct the Wafer Fabrication Operations as currently conducted.

 

(k)           None
of the Transferred Patents is licensed to IBM under the Agreement between IBM
and Rockwell International Corporation dated as of January 1, 1991.

 

(l)            Conexant
has provided to Carlyle a true and correct copy of that certain License and
Supply Agreement (the “TSMC License Agreement”) dated
January 10, 2001 between Conexant and Taiwan Semiconductor Manufacturing
Company Limited (“TSMC”), except that certain provisions (the “Redacted TSMC Provisions”)
of the TSMC License Agreement have been redacted from the copy of the TSMC
License Agreement provided to Carlyle. The Redacted TSMC Provisions do not and
will not in any way restrict or limit the rights of the Conexant Group
Companies or the Specialtysemi Group Companies related to the practice, use,
licensing or assignment of the Intellectual Property that is subject to the
TSMC License Agreement.

 

(m)          The
TSMC License Agreement does not and will not restrict the rights of the
Specialtysemi Group Companies to (i) make, have made, use, offer to sell, sell,
distribute, advertise, import or export any product at or from the Newport
Beach Fab Facility, including, without limitation, using the Transferred
Intellectual Property and Licensed Intellectual Property at the Newport Beach
Fab Facility or (ii) assign or convey ownership of, or pledge or grant a
security interest in, any Transferred Intellectual Property (it being
understood that any future owner of the Transferred Intellectual Property will
take ownership subject to the license granted to TSMC in the TSMC License
Agreement).

 

12

 

(n)           The
TSMC License Agreement does not and will not restrict the rights of the
Specialtysemi Group Companies to (i) assert, bring, pursue or prosecute any
claim or suit for infringement or misappropriation of any of the Transferred
Intellectual Property against any party, except for claims or suits (x)
asserted against TSMC with respect to the Intellectual Property under which
TSMC received a license under the TSMC License Agreement, and (y) relating to
products manufactured or sold by TSMC or TSMC affiliates, or their successors,
under the rights licensed to TSMC in the TSMC License Agreement, or (ii) grant
non-exclusive licenses to make, have made, use, offer to sell, sell, distribute,
advertise, import and/or export products (a “Settlement License”) to any Person (a “Settlement Licensee”)
under the Transferred Intellectual Property in connection with settling or
avoiding any pending or threatened litigation (and nothing in the TSMC License
Agreement restricts the rights of any Settlement Licensee from exercising its
rights under any Settlement License granted to it).

 

2.6          Employee
Matters.

 

(a)           Part
2.6(a)(i) of the Conexant Disclosure Schedule sets forth the name and position
with Conexant of (i) each employee of Conexant whose services are related to
the Wafer Fabrication Operations that is covered by the Collective Bargaining
Agreement (the “Union
Employees”), and (ii) each other employee of Conexant whose
services are related to the Wafer Fabrication Operations that is not covered by
or subject to the Collective Bargaining Agreement (the “Non-Union Employees”).
The Union Employees and the Non-Union Employees are collectively referred to
herein as the “Wafer
Fabrication Operations Employees”. Except as set forth on Part
2.6(a)(ii) of the Conexant Disclosure Schedule, (1) Conexant is not a party to
any labor, collective bargaining agreement, union, or other similar agreement
covering any of the Wafer Fabrication Operations Employees, (2) there are not
occurring or, to Conexant’s knowledge, threatened, and there have not been
within the last five (5) years, any strikes, slowdowns, work stoppages, or
other organized efforts by union or other groups of employees against Conexant
and the Wafer Fabrication Operations Employees, (3) to the knowledge of
Conexant, no union or other labor organization has attempted to organize any
Wafer Fabrication Operations employees except as set forth in Part 2.6(a)(ii)
of the Conexant Disclosure Schedule, (4) to Conexant’s knowledge, Conexant has
not committed any unfair labor practices, (5) Conexant is currently in
compliance with all applicable Legal Requirements relating to the employment of
the Wafer Fabrication Operations Employees, including those related to wages,
hours, collective bargaining, labor, and the payment and withholding of taxes
and other sums required to be withheld, (6) Conexant has paid in full to all
Wafer Fabrication Operations Employees all amounts currently due and payable for
wages, salaries, commissions, bonuses, benefits and other compensation, and (7)
to Conexant’s knowledge, no Wafer Fabrication Operations Employee is in
violation of any employment contract, nondisclosure agreement, noncompetition
agreement, or nonsolicitation agreement to which such employee is bound due to
the activities in which such employee engages on behalf of Conexant.

 

(b)           Part
2.6(b) of the Conexant Disclosure Schedule sets forth all employee benefit
plans, as such term is defined in Section 3(3) of ERISA (including without
limitation medical, dental, health, life insurance) in which all or any of the
Wafer Fabrication Operations Employees are entitled to participate and true and
correct copies of each such plan have been provided or otherwise made available
by Conexant to Carlyle (each such plan, an “Employee

 

13

 

Plan”).
Conexant has provided the Company a true and correct copy of the actuarial
report related to the Retirement Plan.

 

(c)           Conexant
has delivered to Carlyle complete and accurate copies of the Retirement Plan
and the documents relating to the trust established in connection with the
Retirement Plan. To Conexant’s knowledge, Conexant is, and has been, in
compliance with all applicable material Legal Requirements related to the
Retirement Plan except the requirement to furnish a summary plan description to
participants and beneficiaries as required under ERISA Sections 102 and 104. Conexant
has made all contributions or other payments that are required to have been
made under or with respect to the Retirement Plan. Conexant shall pay to the
Company a portion of the contributions required to be made under or with
respect to the Retirement Plan for 2002. Such portion will be determined by
dividing the number of days beginning January 1, 2002 and ending on May 1, 2002
by 365 and multiplying that fraction by the amount of any contribution required
to be made by the Company under or respect to the Retirement Plan for 2002. Conexant
shall pay such prorated amount and the balance of the 2001 minimum contribution
within 30 days of receipt of an invoice from the Company. No Person that is or
was an administrator or fiduciary of the Retirement Plan (or that acts or has
acted as an agent of any such administrator or fiduciary): (i) has engaged in a
“prohibited transaction” within the meaning of Section 406 of ERISA or
Section 4975 of the Code; (ii) has failed to perform any of the
responsibilities or obligations imposed upon fiduciaries under Title I of ERISA;
or (iii) has taken any action that (A) may subject such Retirement Plan or
such Person to any Tax, penalty or Liability relating to any “prohibited
transaction,” or (B) may directly or indirectly give rise to or serve as a
basis for the assertion (by any employee or by any other Person) of any claim
under, on behalf of or with respect to such Retirement Plan. To Conexant’s
knowledge, the trusts forming a part of each Employee Plan of Conexant that is
intended to be qualified under both Section 401(a) and 401(k) of the Code (the “Conexant 401(k) Plans”)
and of the Retirement Plan are exempt from tax pursuant to Code Section 501(a).
To Conexant’s knowledge, no fact or set of circumstances has adversely
affected, or could adversely affect, the qualification of the Retirement Plan
and the Conexant 401(k) Plans prior to May 1, 2002. To Conexant’s knowledge,
there are no pending or threatened claims by, on behalf of, or against, the
Retirement Plan or its related trust (other than routine requests for benefits).
As of the last day of the plan year of the Retirement Plan prior to Closing,
the Projected Benefit Obligation as defined under Financial Accounting
Standards Board Statement 87 (“PBO”) based upon the actuarial assumptions used for
accounting purposes in the most recent actuarial report prepared by the
Retirement Plan’s actuary, will not exceed the market value of the assets of
the Retirement Plan. In addition, based on a reasonable projection of the PBO
using generally accepted actuarial principles, the PBO will not exceed the
market value of the assets of the Retirement Plan as of May 1, 2002. Conexant
shall be required to reimburse the Company for all costs and expenses incurred
in the preparation and filing of a determination letter request for the Retirement
Plan, and the preparation and distribution of a summary plan description for
the Retirement Plan unless Conexant prepares and files the determination letter
request with the Internal Revenue Service, and prepares and distributes the
summary plan description prior to Closing. Conexant shall pay any such required
amounts within 30 days of receipt of invoice(s) from the Company.

 

2.7          Compliance
with Legal Requirements. Except as set forth in Section 2.9 (and the
schedules thereto) and in Part 2.7 of the Conexant Disclosure Schedule:
(a) the Conexant Group Companies and their Affiliates are, and at all times
during the prior five (5) calendar years

 

14

 

have been, in
material compliance with each Legal Requirement (including Environmental Laws)
that is applicable to the Wafer Fabrication Operations or any of the
Contributed Assets; (b) no event has occurred that, to Conexant’s knowledge,
would be reasonably likely to result in a material violation by any Conexant
Group Company or any of its Affiliates of, or a material failure on the part of
any Conexant Group Company or any of its Affiliates to comply with, any Legal
Requirement (including Environmental Laws) related to the Wafer Fabrication
Operations or the Contributed Assets; and (c) none of the Conexant Group
Companies has received any notice from any Governmental Body regarding any
violation of, or failure to comply with, any material Legal Requirement. Conexant
has made available to Carlyle an accurate and complete copy of each report,
study, survey, letter, or other document or communication received by any of
the Conexant Group Companies within the last five (5) calendar years that
addresses or otherwise relates to the compliance by any of the Conexant Group
Companies with, or the applicability to any of the Conexant Group Companies of,
any Legal Requirement related to the Wafer Fabrication Operations or the
Contributed Assets. To Conexant’s knowledge, no Governmental Body has proposed
or is considering any Legal Requirement that, if adopted or otherwise put into
effect, (i) may have an adverse effect on the current Wafer Fabrication
Operations or the ownership of the Contributed Assets, or on the ability of
Conexant to comply with or perform any covenant or obligation under any of the
Transactional Agreements, or (ii) may have the effect of preventing,
delaying, making illegal or otherwise interfering with any of the Transactions.
Except as set forth in Part 2.7 of the Conexant Disclosure Schedule, none of
the Conexant Group Companies has, during the past five (5) years, conducted any
internal investigation concerning any actual or alleged violation of any Legal
Requirement by any of the Conexant Group Companies, any Affiliate thereof, or
any officer, director, employee, or agent thereof in connection with the
conduct of the Wafer Fabrication Operations.

 

2.8          Governmental
Authorizations. Part 2.8(a) of the Conexant Disclosure Schedule lists all
Governmental Authorizations held by any of the Conexant Group Companies and
related to the conduct of the Wafer Fabrication Operations and the Contributed
Assets (the “Wafer
Fabrication Operations Permits”). Conexant has made available to
Carlyle accurate and complete copies of all Wafer Fabrication Operations Permits,
including all renewals thereof and all amendments thereto. Each Wafer
Fabrication Operations Permit is valid and in full force and effect. Except as
set forth in Part 2.8(b) of the Conexant Disclosure Schedule: (i) the
Conexant Group Companies are in material compliance with all of the terms and
requirements of each Wafer Fabrication Operations Permit; (ii) no event has
occurred that would be reasonably likely to (A) result in a material
violation of or a material failure to comply with any term or requirement of
any Wafer Fabrication Operations Permit or (B) result in the revocation,
withdrawal, suspension, cancellation, termination, modification, or failure to
be renewed if applicable in the ordinary course of any Wafer Fabrication
Operations Permit; (iii) none of the Conexant Group Companies has received any
written notice or other communication from any Governmental Body regarding any
violation of or failure to comply with any term or requirement of any Wafer
Fabrication Operations Permit. Except as set forth on Part 2.8(c) of the
Conexant Disclosure Schedule, the Wafer Fabrication Operations Permits
constitute all of the Governmental Authorizations necessary (i) to enable
the Conexant Group Companies to conduct the Wafer Fabrication Operations in the
manner in which such business is currently being conducted, and (ii) to
permit the Conexant Group Companies to own and use the Contributed Assets in
the manner in which they are currently owned and used by the Conexant Group
Companies.

 

15

 

2.9          Environmental
Matters. Except as set forth in Part 2.9 of the Conexant Disclosure
Schedule:

 

(a)           Conexant
has no knowledge of any violation of any Environmental Law, which violation is
the result of or arises out of the conduct of the Wafer Fabrication Operations
or any of the Contributed Assets and would be reasonably likely to result in a
Conexant Material Adverse Effect, and there are no facts or circumstances that,
to Conexant’s knowledge, would reasonably be expected to give rise to any such
violation of any Environmental Law.

 

(b)           Conexant
has obtained or caused to be obtained all environmental permits necessary for
the operation of the Wafer Fabrication Operations or any of the Contributed
Assets to comply, in all material respects, with all applicable Environmental
Laws, and all such environmental permits are in full force and effect.

 

(c)           None
of the Conexant Group Companies has received any written notice, report, or
other communication regarding any violation, alleged violation of, liability,
or potential liability under any Environmental Law relating to the Wafer
Fabrication Operations or any of the Contributed Assets, and there are no
writs, injunctions, decrees, orders or judgments outstanding, or any actions, suits,
claims, proceedings or investigations pending or, to Conexant’s knowledge,
threatened, relating to compliance with or liability under any Environmental
Law affecting the Wafer Fabrication Operations or any of the Contributed
Assets.

 

(d)           None
of the Conexant Group Companies has received, during the last five years, any
notice, report or other communication regarding any alleged violation of any
Environmental Law, based on the treatment, storage, disposal of, arrangement
for or permission for the disposal of, transportation, handling, use, or
release of any Hazardous Material, or ownership or operation of any property or
facility relating to the Wafer Fabrication Operations or any of the Contributed
Assets.

 

(e)           To
Conexant’s knowledge, no Hazardous Material has been discharged, disposed of,
dumped, injected, pumped, deposited, spilled, leaked, emitted, or released at,
on or under any facility or property relating to the Wafer Fabrication
Operations or any of the Contributed Assets.

 

(f)            Conexant
has made available to Carlyle accurate and complete copies of all material
environmental audits, reports and other material environmental documents
authored within the past five years relating to the Wafer Fabrication
Operations or any of the Contributed Assets, which are in its possession,
custody or control, provided that any conclusions or assessments made by
Conexant in any such audits, reports and other environmental documents prepared
by Conexant have been stricken or otherwise redacted from the copies of such
audits, reports and other environmental documents.

 

2.10        Proceedings;
Orders.  There is no Order to which
the Contributed Assets are subject; and none of the Conexant Group Companies is
subject to any Order that relates to the Wafer Fabrication Operations. To
Conexant’s knowledge, no Wafer Fabrication Operations Employee is subject to
any Order that may prohibit such employee from engaging in the Wafer
Fabrication Operations. Except as set forth in Part 2.10 of the Conexant
Disclosure Schedule,

 

16

 

there is no
proposed Order and no Proceeding pending or, to Conexant’s knowledge,
threatened that (i) relates to the Wafer Fabrication Operations, the
Contributed Assets, or on any of the Conexant Group Companies’ ability to
comply with or perform any covenant or obligation under any of the
Transactional Agreements, or (ii)  if issued or already determined, would
be reasonably likely to have the effect of preventing, delaying, making illegal
or otherwise interfering with any of the Transactions.

 

2.11        Non-Contravention;
Consents.

 

(a)           Except
as set forth in part 2.11(a) of the Conexant Disclosure Schedule, neither the
execution and delivery by any of the Conexant Group Companies of any of the
Transactional Agreements and the Newport Fab Contribution Agreement nor the
consummation or performance by any of the Conexant Group Companies of any of
the Transactions or the Newport Fab Contribution, will:

 

(i)            contravene,
conflict with or result in a violation of, or give any Governmental Body the
right to challenge any of the Transactions or to exercise any remedy or obtain
any relief under, any Legal Requirement or any Order to which any of the
Conexant Group Companies, the Wafer Fabrication Operations, or any of the Contributed
Assets is subject;

 

(ii)           contravene,
conflict with or result in a violation of any of the terms or requirements of,
or give any Governmental Body the right to revoke, withdraw, suspend, cancel,
terminate, modify, or fail to renew in the ordinary course, any Transferred
Permit;

 

(iii)         violate or conflict with any provision of
the Certificate of Incorporation or Bylaws or other organizational documents of
any of the Conexant Group Companies or any of their Affiliates;

 

(iv)          violate,
conflict with, or result in a breach of any provision of, or constitute a
default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the termination of, or accelerate the
performance required by, or result in a right of termination or acceleration
under, or result in the creation of any material Encumbrance upon any of the
Contributed Assets or the Membership Interests under any of the terms,
conditions or provisions of, or require the consent of any party under, any contract,
indebtedness, note, bond, indenture, security or pledge agreement, commitment,
license, Lease, franchise, Permit, agreement, or other instrument or obligation
(i) to which any of the Conexant Group Companies or any of their Affiliates is
a party or (ii) by which the Contributed Assets or the Membership Interests are
bound; or

 

(v)            otherwise
result in or impose any Encumbrance on the Contributed Assets or the Membership
Interests.

 

(b)           Except
as otherwise set forth in Part 2.11(b) of the Conexant Disclosure
Schedule, none of the Conexant Group Companies is or will be required to make
any filing with or give any notice to, or obtain any Consent from, any Person
in connection with the execution and delivery of any of the Transactional
Agreements or the Newport Fab Contribution Agreement or the consummation or
performance of any of the Transactions or the Newport Fab Contribution.

 

17

 

2.12        Absence
of Certain Changes or Events.  Since June 30, 2001, except as
contemplated by this Agreement, there has not been any:

 

(a)           event
or occurrence resulting in or reasonably likely to result in a Conexant
Material Adverse Effect;

 

(b)           material
damage, destruction or loss (whether or not covered by insurance) adversely affecting
the Contributed Assets or the Wafer Fabrication Operations;

 

(c)           increase
in the rate of compensation payable or to become payable to any employee
primarily engaged in the Wafer Fabrication Operations, except as provided in
any employment agreement (including any union contract) between Conexant and
any such Persons or in any Employee Plan, and any increases in the normal
course of business;

 

(d)           cancellation
or termination of any material contract or entry into any material contract
relating to the Contributed Assets or the Wafer Fabrication Operations that is
not in the ordinary course of the business of the Conexant Group Companies;

 

(e)           agreement
by any of the Conexant Group Companies or any if their Affiliates to do any of
the things described in the preceding clauses (a) through (d) other than as
expressly provided for herein.

 

2.13        Financial
Information.  Conexant has provided Carlyle or its
representatives the historical financial and operating information related to
the Wafer Fabrication Operation and the Contributed Assets for the periods
commencing October 1999 through November 2001 listed in Schedule 2.13
(collectively the “Financial
Information”). The Financial Information (i) is complete, true
and accurate in all material respects; (ii) with respect to the financial
information, was prepared on a basis consistent with Conexant’s historical
accounting policies, practices, and procedures consistently applied as those in
prior fiscal years; and (iii) fairly and accurately presents in all material
respects all costs associated with the Wafer Fabrication Operations and the
Contributed Assets for the period commencing October 1999 through November
2001.

 

2.14        Suppliers.  Part
2.14 of the Conexant Disclosure Schedule sets forth a complete and accurate
list of the names and addresses of the Wafer Fabrication Operations’ ten (10)
largest suppliers for the most recent fiscal year showing the approximate total
purchases in dollars by Conexant from each such supplier during such fiscal
year.  As of the date hereof, no Conexant Group Company has received any
communication from any supplier named on Part 2.14 of the Conexant Disclosure
Schedule of any intention to terminate or materially reduce purchases from or
supplies to any of the Conexant Group Companies. Part 2.14 of the Conexant
Disclosure Schedule sets forth a list of all current customer contracts and
current customer proposals of the Conexant Group Companies with respect to the
Wafer Fabrication Operations.

 

2.15        Taxes.

 

(a)           Except
as set forth in part 2.15(a) of the Conexant Disclosure Schedule, (i) all Tax
Returns required to be filed with respect to the Wafer Fabrication Operations
or the Contributed Assets have been or will be timely filed, (ii) all Taxes
that accrue or are payable by any of the Conexant Group Companies in respect of
the Contributed Assets or the Wafer

 

18

 

Fabrication
Operations for Pre-Closing Tax Periods (determined on the closing of the books
method of accounting) have been or will be timely paid in full, (iii) there are
no liens for Taxes on the Contributed Assets (other than liens for current
Taxes not yet due and payable), (iv) there is no audit or other matter in
controversy with respect to any Taxes that relate to the Wafer Fabrication
Operations or the Contributed Assets and there is no Tax deficiency or claim
assessed that relates to the Wafer Fabrication Operations or the Contributed
Assets, (v) none of the Contributed Assets (A) are required to be treated as
being owned by any other person pursuant to the so-called safe harbor lease
provisions of former Section 168(f)(8) of the Code, (B) secures any debt the
interest of which is tax-exempt under Code Section 103(a), (C) is tax-exempt
use property within the meaning of Code Section 168(h) or (D) is subject to a
467 rental agreement as defined in Section 467 of the Code,

 

(b)           each
of the Conexant Group Companies has paid in full or discharged all Taxes the
nonpayment of which could result in (i) a Lien on the Contributed Assets in the
hands of the Company or (ii) a Lien on the Contributed Assets in the hands of
the Newport Fab LLC after the Closing Date, excepting in each case such Taxes
as will not be due until after the Closing Date.

 

(c)           Conexant
is not a “foreign person” within the meaning of section 1445 of the Code;

 

(d)           Conexant
has not entered into an agreement to dispose of the Common Stock of the Company
to be received pursuant to Section 1.3(a)(i) of this Agreement and Conexant
does not have a plan or intention to dispose of such stock;

 

(e)           The
aggregate adjusted tax basis of the Contributed Assets is not less than
$204,139,164.30 and Part 2.15(e) of the Conexant Disclosure Schedule sets forth
the aggregate adjusted tax basis of each category of Contributed Assets that is
included in the Company’s regularly prepared balance sheet.

 

(f)            Conexant
is not a “new loss corporation” within the meaning of Section 382 of the Code
and losses or deductions with respect to the Contributed Assets will not be
subject to any limitations under Section 382 of the Code or the Treasury
Regulations promulgated thereunder immediately prior to the contribution of the
Membership Interests to the Company.

 

(g)           Conexant
is the sole member of Newport Fab LLC. The Newport Fab LLC is, and has been
since its formation, classified for federal and state income Tax purposes as a
disregarded entity, and neither Conexant nor Newport Fab LLC has made an
election for the Newport Fab LLC to be treated as an association taxable as a
corporation.

 

2.16        No
Brokers.  No broker, finder or similar agent is entitled to any
finder’s fee, brokerage fees or commission or similar payment from any of the
Conexant Group Companies or any of their Affiliates in connection with the
transactions contemplated hereby or by the Newport Fab Contribution Agreement.

 

19

 

2.17        Real
Property.  Part 2.17 of the Conexant Disclosure Schedule lists
all real property owned or leased by Conexant or its Affiliates and primarily
used in the Wafer Fabrication Operations (the “Real Property”).

 

2.18        Affiliated
Transactions.  Except as set forth on Part 2.18 of the Conexant
Disclosure Schedule, no Affiliate of any of the Conexant Group Companies or any
Subsidiary thereof and, to Conexant’s knowledge, no officer, director,
employee, stockholder, or any individual related by blood, marriage or adoption
to any such individual or any entity in which any such Person or individual
owns a greater than 10% beneficial interest, is a party to any agreement,
commitment, or transaction with any of the Conexant Group Companies or any
Subsidiary thereof or has any material interest in any material property used
by the Conexant Group Companies or any Subsidiary, wherein such agreement,
commitment, transaction, or property is primarily related to the Wafer
Fabrication Operations or the Contributed Assets.

 

2.19        Sufficiency
of Assets.  The Membership Interests and the Contributed Assets,
together with the rights and assets to be leased, licensed, or otherwise provided
to the Company pursuant to the Transactional Agreements together with the
Shared Contracts, are sufficient to permit the Specialtysemi Group Companies to
operate the Wafer Fabrication Operations, following the Closing, in the manner
currently conducted by the Conexant Group Companies.

 

2.20        Newport
Fab Contribution Agreement.  Conexant has provided to Carlyle a
true and correct copy of the Newport Fab Contribution Agreement and all
documents and instruments (the “Related Newport Fab Documents”) executed in connection
with the consummation of the Newport Fab Contribution. The Newport Fab
Contribution Agreement and the Related Newport Fab Documents have not been
amended or modified by the parties thereto and no party thereto has waived,
released or compromised any rights under the Newport Fab Contribution Agreement
or any of the Related Newport Fab Documents.

 

2.21        Liabilities.  The
Newport Fab LLC has no liabilities or obligations of any kind or nature other
than the Assumed Liabilities.

 

2.22        Consummation
of the Newport Fab Contribution.    The Newport Fab
Contribution has been consummated strictly in accordance with the terms of the
Newport Fab Contribution Agreement and the Related Newport Fab Documents, and
Newport Fab LLC owns all of the Contributed Assets (other than the Transferred
Contracts), free and clear of all Encumbrances other than Permitted
Encumbrances.

 

2.23        Membership
Interests.    The Membership Interests were duly
authorized and validly issued by Newport Fab LLC, free of any preemptive or
similar rights, and are held, beneficially and of record, by Conexant, free and
clear of all Encumbrances. Other than the Membership Interests, there are not
issued or outstanding any membership or equity interests of Newport Fab LLC or
any options, warrants or other rights exercisable for, or securities
convertible or exchangeable into, any membership or equity interests of Newport
Fab LLC.

 

2.24        Newport
Fab LLC.  Newport Fab LLC is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Delaware and is duly licensed or qualified as a foreign limited liability
company to conduct business in each state

 

20

 

and other
jurisdiction where the character of the Contributed Assets and the nature of
such activities make such qualification necessary, except where the failure to
be so qualified would not result in a Conexant Material Adverse Effect. Conexant
has provided to Carlyle true and correct copies of the certificate of
formation, limited liability company agreement, and other organizational
documents of Newport Fab LLC as amended to date (the “Newport Fab LLC Organizational
Documents”). Newport Fab LLC has conducted no business,
operations or activities other than the ownership of the Contributed Assets and
conduct of the Wafer Fabrication Operations.

 

2.25        The
Warrant.

 

Prior to
Closing, the issuance of the Warrant will be duly authorized by all necessary
corporate action on the part of Conexant. Prior to Closing, the Warrant Shares
will be duly authorized and reserved for issuance and, when issued upon
exercise of the Warrant, will be validly issued, fully paid and non-assessable
and will be issued free of any preemptive or similar rights.

 

3.             REPRESENTATIONS AND WARRANTIES OF CARLYLE.

 

Carlyle
represents and warrants, to and for the benefit of the Company, Conexant and
the other Conexant Indemnitees as follows:

 

3.1          Due
Organization; Authority; Binding Nature of Agreements.  Carlyle
is a limited liability company duly organized, validly existing and in good
standing under the laws of Delaware. Carlyle has the requisite corporate power
and authority to enter into, deliver and to perform its obligations under each
of the Transactional Agreements to which it is a party; and the execution,
delivery and performance by Carlyle of the Transactional Agreements to which it
is a party have been duly authorized by all necessary action on the part of
Carlyle and its members and no other limited liability company proceedings on
the part of Carlyle are necessary to authorize the Transactional Agreements and
the transactions contemplated thereby. This Agreement constitutes the legal,
valid and binding obligation of Carlyle, enforceable against Carlyle in
accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency or other similar Legal Requirements affecting
the enforcement of creditors’ rights generally and by general principles of
equity relating to enforceability. Upon the execution of each of the other
Transactional Agreements at the Closing, each of such other Transactional
Agreements to which Carlyle is a party will constitute the legal, valid and
binding obligation of Carlyle, enforceable against Carlyle in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency or other similar Legal Requirements affecting the enforcement of
creditors’ rights generally and by general principles of equity relating to
enforceability.

 

3.2          Non-Contravention;
Consents.  Except as set forth in Part 3.2 of the Carlyle
Disclosure Schedule, neither the execution and delivery by Carlyle of any of
the Transactional Agreements, nor the consummation or performance by Carlyle of
any of the Transactions, will directly or indirectly (with or without notice or
lapse of time): (i) contravene, conflict with or result in a violation of, or
give any Governmental Body the right to challenge any of the Transactions or to
exercise any remedy or obtain any relief under, any Legal Requirement or any

 

21

 

Order to which
Carlyle is subject; or (ii) result in the imposition or creation of any
Encumbrance (other than Permitted Encumbrances) upon or with respect to any
shares of Common Stock of the Company to be issued to Carlyle. Except as set
forth in Part 3.2 of the Carlyle Disclosure Schedule, Carlyle is not and will
not be required to make any filing with or give any notice to, or to obtain any
Consent from, any Person in connection with the execution and delivery of any
of the Transactional Agreements or the consummation or performance of any of
the Transactions. There is no Order, or proposed Order that if issued or
otherwise put into effect, would be reasonably likely to have an adverse affect
on Carlyle’s ability to comply with or perform any covenant or obligation under
any of the Transactional Agreements.

 

4.             COVENANTS
OF THE PARTIES.

 

4.1          Conduct
of Business.

 

(a)           During
the period commencing on the date of this Agreement and ending on the earlier
to occur of (a) the Closing or (b) the termination of this Agreement (the “Pre-Closing Period”),
Conexant shall and shall cause Newport Fab LLC to, except as expressly
contemplated by this Agreement, or as consented to in writing by Carlyle (which
consent will not be unreasonably withheld or delayed) conduct the Wafer
Fabrication Operations in the ordinary course of business, and substantially in
accordance with past practice and will use its reasonable efforts not to take
any action that would adversely affect the Wafer Fabrication Operations or the
Contributed Assets. Without limiting the generality of the foregoing, Conexant
shall not and shall cause each of its Affiliates not to, except (i) as set
forth on Schedule 4.1, (ii) as specifically contemplated by this Agreement,
(iii) as consented to in writing by Carlyle (which consent will not be
unreasonably withheld or delayed), or (iv) except where wholly unrelated to the
Wafer Fabrication Operations or the Contributed Assets:

 

(i)            enter
into, extend, materially modify, terminate or renew any Transferred Contract
except in the ordinary course of business;

 

(ii)           sell,
assign, transfer, convey, lease, mortgage, pledge or otherwise dispose of or
encumber any material Contributed Asset, or any interests therein, except in
the ordinary course of business;

 

(iii)         except as otherwise required by applicable
Legal Requirements, take any action with respect to the grant of any bonus,
severance or termination pay, other than pursuant to written policies or
agreements of any of the Conexant Group Companies or their Affiliates in effect
on the date hereof, or with respect to any increase of benefits payable under
its severance or termination pay policies or agreements in effect on the date
hereof or increase in any material respect the compensation or fringe benefits
of any employee (other than increases required under the Collective Bargaining
Agreement) or pay any benefit not required by any existing Employee Plan,
agreement or policy;

 

(iv)          make
any change in the key management structure of the employees employed primarily
in the Wafer Fabrication Operations, including, without limitation, the hiring
of additional officers or management employees or the termination of existing
officers or management employees other than pursuant to offers of employment
made

 

22

 

by Conexant or
its Affiliates prior to the date hereof (which offers have been disclosed to
Carlyle) or otherwise in the ordinary course of business;

 

(v)            except
in the ordinary course of business, adopt, enter into or amend any Employee
Plan, agreement (including, without limitation, any collective bargaining or
employment agreement), trust, fund or other arrangement for the benefit or
welfare of any Wafer Fabrication Operations Employee;

 

(vi)          fail
to expend funds for budgeted capital expenditures or commitments set forth on
Schedule 4.1(a)(vi) in accordance with customary practices;

 

(vii)         fail to maintain the Contributed Assets in
substantially their current state of repair, excepting normal wear and tear, or
fail to replace consistent with the Conexant Group Companies’ past practices
inoperable, worn-out or obsolete or destroyed Contributed Assets;

 

(viii)        make any material income tax election or
settlement or compromise with tax authorities affecting the Contributed Assets,
the Membership Interests, or the Assumed Liabilities;

 

(ix)          intentionally
do any other act that would be reasonably likely to cause any representation or
warranty of Conexant in this Agreement to be or become untrue in any material
respect;

 

(x)           fail
to keep available the services of and maintain good relations with its current
Wafer Fabrication Operations Employees, suppliers, customers, licensors and
other persons having business relationships with the Wafer Fabrication
Operations;

 

(xi)          fail
to keep in full force and effect all insurance policies in effect as of the
date of this Agreement covering the Contributed Assets;

 

(xii)         enter into any agreement or otherwise become
obligated to do any action that would materially and adversely affect the Wafer
Fabrication Operations or the Contributed Assets; or

 

(xiii)       permit or cause Newport Fab LLC to
distribute or transfer to Conexant or any of its Affiliates any assets or property
(other than cash).

 

(b)           Notwithstanding
anything herein to the contrary, Conexant shall, within seven (7) days of the
date hereof, prepare and present to Carlyle a proposed plan to reduce the fixed
costs associated with the Wafer Fabrication Operations by at least ten percent
(10%) during the Pre-Closing Period (the “Cost Reduction Plan”). Conexant and Carlyle
shall negotiate in good faith regarding the Cost Reduction Plan, and Conexant
shall take steps to implement any portions of the Cost Reduction Plan agreed to
by Carlyle. In the event that Carlyle does not agree to a cost-reduction
measure reflected in the Cost Reduction Plan, then Conexant shall not be
obligated or permitted to take any action with respect to such measure.

 

23

 

(c)           The
Company and Conexant shall, prior to the Closing and within the time periods
required by all applicable Legal Requirements, file all applications and any
other documents required to be submitted or filed prior to the Closing with the
appropriate Governmental Bodies, and seek to obtain all applicable consents and
approvals required to be obtained prior to the Closing by the appropriate
Governmental Bodies, and take all other actions necessary to effect the
transfer of, or issuance of replacement permits for, the Wafer Fabrication
Operations Permits. After the Closing, the Company and Conexant shall, within
the time periods required by all applicable Legal Requirements, file all
applications and any other documents required to be submitted or filed after
the Closing with the appropriate Governmental Bodies, and seek to obtain all
applicable consents and approvals required to be obtained after the Closing by
the appropriate Governmental Bodies, and take all other actions necessary to
effect the transfer of, or issuance of replacement permits for, the Wafer
Fabrication Operations Permits. During the Pre-Closing Period and for a period
of six (6) months thereafter, the Company and Conexant shall use their
commercially reasonable efforts in assisting each other with complying with the
obligations set forth in the two preceding sentences. Notwithstanding the
foregoing, Conexant shall not be obligated to transfer to the Company a
specific Wafer Fabrication Operations Permit if any such transfer would violate
applicable Legal Requirements. Neither party shall be liable to the other party
for any costs, fees, penalties or other liabilities resulting from the failure
of such party to take any action required to be taken by the other party in
order for the Company to obtain replacement permits for the Wafer Fabrication
Operations Permits. Notwithstanding the foregoing, the Company and Conexant
shall each pay 50% of all costs (including application and permitting fees)
associated with the Company obtaining any replacement permits for the Wafer
Fabrication Operations Permits. Neither party shall have any Liability due
solely to a failure by the other party to take any action, which is required to
be taken exclusively by such other party, in order for the Company to obtain,
assume or become the named party on such replacement permits for the Wafer
Fabrication Operations Permits.

 

(d)           During
the Pre-Closing Period and for a period of six (6) months after the Closing,
Conexant and the Company shall use their commercially reasonable efforts to
transfer or assign, or cause to be transferred or assigned, the Transferred
Contracts as provided in the Newport Fab Contribution Agreement and to
negotiate replacement contracts for the Shared Contracts. The Company shall pay
the first $100,000 for all costs (including attorneys fees) associated with the
Specialtysemi Group Companies negotiating replacement contracts for the Shared
Contracts following Closing. Thereafter, the Company and Conexant shall each
pay 50% of such costs; provided that Conexant shall not be required to pay any
such costs with respect to the platform technology contracts listed on Schedule
2.5(g) under the heading “CAD Licenses” (which costs shall be borne by the
Company). Notwithstanding anything herein to the contrary, Conexant shall not
be obligated to transfer any Shared Contracts.

 

4.2          Access
to Information.  From the date hereof through the Closing,
Conexant shall, and shall cause their respective officers, directors, and
employees to afford Carlyle and its authorized representatives, during normal
business hours and upon reasonable notice to the Conexant Group Companies and
in a manner that will not unduly interfere with the operation of the Wafer
Fabrication Operations, complete access at all reasonable times to the
Contributed Assets for the purpose of inspecting the same, and to the officers
and employees of Conexant, and shall, as Carlyle may reasonably request,
furnish Carlyle and its authorized representatives all financial, operating,
and other data and information that is related to the Wafer Fabrication

 

24

 

Operations or
the Contributed Assets reasonably requested by Carlyle, except to the extent
that such access would violate any Legal Requirement to which the Conexant
Group Companies, their employees or the Contributed Assets are subject.

 

4.3          Filings
and Consents.  Conexant and Carlyle shall use commercially
reasonable efforts to ensure that: (i) all filings, notices and Consents
required to be made, given and obtained in order to consummate the Transactions
and the transactions contemplated by the Newport Fab Contribution Agreement are
made, given and obtained on a timely basis; (ii) during the Pre-Closing Period,
Conexant and Carlyle and their respective Representatives cooperate with one
another, and prepare and make available such documents and take such other
actions as the other may request in good faith, in connection with any filing,
notice or Consent that the other is required to make, give or obtain.

 

4.4          No
Solicitation.  During the period (the “No-Solicitation Period”)
commencing as of the date of this Agreement and ending on the earlier to occur
of (a) the termination of this Agreement and (b) the Closing, Conexant shall
not and shall cause Newport Fab LLC and Conexant’s and Newport Fab LLC’s
respective Representatives not to, directly or indirectly, (i) enter into,
solicit, initiate or continue any discussions or negotiations with, or
encourage or respond to any inquiries or proposals by, or participate in any
negotiations with, or provide any information to, or otherwise cooperate in any
other way with, any Person, other than Carlyle and its Representatives,
concerning any sale, lease, or license of all or any substantial portion of the
Wafer Fabrication Operations or the Contributed Assets, or (ii) provide any
nonpublic information regarding the Contributed Assets or the Wafer Fabrication
Operations to any Person in response to any proposal described in clause (i)
above, provided however, that
Conexant shall not be prohibited from providing nonpublic information regarding
the Contributed Assets or the Wafer Fabrication Operations to any Person who is
considering the acquisition of all or substantially all of the assets of
Conexant or the acquisition of beneficial ownership of 50% or more of the
capital stock of Conexant, provided that such third party enters into a
non-disclosure agreement with Conexant which provides that the Company is a
third party beneficiary of those provisions contained in such non-disclosure
agreement that relate to the non-disclosure of nonpublic information related to
the Wafer Fabrication Operations or the Contributed Assets. Conexant shall
promptly notify Carlyle of the material terms of any inquiry, proposal, or
offer received by the Conexant Group Companies during the No-Solicitation
Period from any Person (other than the Company or Carlyle) solely related to
the acquisition, lease, license or transfer of all or a material portion of the
Contributed Assets or the Wafer Fabrication Operations including, without
limitation, the identity of the prospective purchaser or soliciting party,
except to the extent that any such notification would violate any existing
agreement of Conexant. Notwithstanding the foregoing, Conexant shall have no
obligation to disclose to any Person the existence of any inquiry, proposal or
offer received by Conexant relating to the acquisition of all or substantially
all of the assets of Conexant or the acquisition of beneficial ownership of 50%
or more of the capital stock of Conexant.

 

4.5          Notification.  During
the Pre-Closing Period, each of Conexant and Carlyle shall promptly notify the
other parties to this Agreement in writing of: (i) the discovery by it of any
event, condition, fact or circumstance that occurred or existed on or prior to
the date of this Agreement and that caused or constitutes a breach of any
representation or warranty made by it in this Agreement; (ii) any event,
condition, fact or circumstance that occurs, arises or exists after

 

25

 

the date of
this Agreement and that would cause or constitute a breach of any
representation or warranty made by it in this Agreement if (A) such
representation or warranty had been made as of the time of the occurrence,
existence or discovery of such event, condition, fact or circumstance, or
(B) such event, condition, fact or circumstance had occurred, arisen or
existed on or prior to the date of this Agreement; (iii) any breach of any
covenant or obligation of it; and (iv) any event, condition, fact or
circumstance that may make the timely satisfaction of any of the conditions set
forth in Section 4 impossible or unlikely.

 

4.6          Bulk
Transfer Laws.  Carlyle and the Company hereby acknowledge that
the Conexant Group Companies have not taken, and do not intend to take, any
action required to comply with any applicable bulk sale or bulk transfer Legal
Requirements or similar Legal Requirements, and each of Carlyle and the Company
hereby waive compliance by the Conexant Group Companies with any applicable
bulk sale or bulk transfer Legal Requirements of any jurisdiction in connection
with the contribution of the Contributed Assets to Newport Fab LLC or the
transactions contemplated hereby.

 

4.7          Publicity.  Each
of Conexant, Carlyle and the Company shall ensure that, during the Pre-Closing
Period: (i) neither it nor any of its Representatives issues or disseminates
any press release or other publicity or otherwise makes any disclosure of any
nature (to any supplier, landlord, or creditor of Conexant, Carlyle or the
Company or to any other Person other than a Representative of the party making
such disclosure) regarding any of the Transactions or the existence or terms of
this Agreement, except to the extent that any of the Conexant Group Companies,
Carlyle or the Company is required by any Legal Requirement to make any such
disclosure (it being understood that Conexant shall (A) issue a press release
following the execution hereof which shall have been approved by Carlyle and
(B) file one or more reports on Form 8-K with the Securities Exchange
Commission); and (ii) if it is required by any Legal Requirement to make any
such disclosure, it shall advise the other parties to this Agreement, at least
seven (7) business days before making such disclosure, of the nature and
content of the intended disclosure.

 

4.8          Reasonable
Best Efforts.  During the Pre-Closing Period, each of Conexant,
the Company and Carlyle shall, and Conexant shall cause Newport Fab LLC to, use
its reasonable best efforts to cause the conditions set forth in Sections 5 and
6 to be satisfied on a timely basis. Each of Conexant, the Company and Carlyle
shall also negotiate in good faith and use their reasonable best efforts to
reach agreement concerning the forms of the License Agreements, Real Property
Lease Agreements, IT Services Agreement, Transition Services Agreement, the
Employee Matters Agreement, and the Warrant.

 

4.9          Environmental
Matters.  In the event that at any time after the Closing Date,
the conduct of the Wafer Fabrication Operations ceases, then the Company shall
be required to (i) either (1) remove all Contributed Assets from the physical
facilities in which the Contributed Assets reside or (2) if such assets are not
removed from the physical facilities in which they reside, to remove all
Hazardous Materials from the Contributed Assets, and (ii) to obtain all
Governmental Authorizations required to be obtained as a result of the
cessation of operations, except for any Governmental Authorizations required to
be obtained in connection with Environmental Conditions existing prior to the
Closing Date that relate solely to ground-water or soil contamination (such
actions collectively referred to as the “Decommission Plan”). The

 

26

 

Company shall
be responsible for and shall bear all fees, costs, expenses and other
Liabilities incurred in connection with the Decommission Plan.

 

4.10        Tax
Matters.

 

(a)           The
Company, Carlyle and Conexant each agrees (i) that the contribution of the
Membership Interests to the Company will be treated and reported for income tax
purposes as a contribution by Conexant of the Contributed Assets to the Company
in exchange for the consideration specified in Section 1.3(a)(i) (the “Section 351 Transfer”),
(ii) not to take any action that would cause the Section 351 Transfer not to
qualify under Section 351 of the Code, (iii)to report the transactions
contemplated under Sections 1.1, 1.2, 1.3 and 1.4 of this Agreement as one
which qualifies under Section 351 of the Code in the filing of all Tax Returns
(including reporting the portion of the consideration received in exchange for
the Contributed Assets other than the stock of the Company as “boot” under
Section 351) and (iv) to report to each other any communication from the
Internal Revenue Service which challenges in any way such characterization of
this transaction. The parties further agree that they will continue to report
the Section 351 Transaction as one that so qualifies under Section 351 of the
Code notwithstanding any contrary communication from the Internal Revenue
Service and, each party will defend such qualification in an audit, tax review
or tax-litigation challenging such qualification. Without limiting the
generality of the foregoing (i) the parties shall file with their respective
Tax Returns for the taxable year in which the transactions described in this
Agreement are consummated (which Tax Returns shall be timely filed (including
extensions)) the statement required by Treasury Regulation § 1.351-3(a), and
shall deliver a copy of such statements to the other parties within thirty (30)
days thereafter and (ii) the Company shall file with its Tax Return for the
taxable period which includes the Closing Date (which Tax Return shall be
timely filed by the Company (including extensions)) the statement required by
Treasury Regulation § 1.351-3(b). Conexant, Carlyle and the Company shall also
maintain such permanent records as are required by Treasury Regulation §
1.351-3(c).

 

(b)           Within
sixty (60) days after the Closing, Conexant shall deliver to the Company: (i)
all of the cost and other basis information relating to the Contributed Assets
and Assumed Liabilities for federal income tax purposes reasonably required for
the Company to prepare the statement required by Treasury Regulation §
1.351-3(b)(2), (ii) the gain, if any, recognized by Conexant in the Section 351
Transfer with respect to each item of tangible and intangible property included
in the Contributed Assets, (iii) a complete and correct list of the income tax
basis of each item of tangible and intangible property included in the
Contributed Assets, (iv) the year of acquisition of each such item of tangible
or intangible property, (v) the depreciable life of each such item of tangible
or intangible property and (vi) the amount and method of depreciation with
respect to each such item of tangible or intangible property.

 

(c)           The
Company and Conexant agree to retain all records relating to the Taxes of the
Wafer Fabrication Operations or the Contributed Assets for all taxable periods
ending on or prior to the Closing Date or which include the Closing Date until
ninety days after the expiration of the statute of limitation (including any
extensions thereof) for the taxable period or periods to which such records
relate. Consistent with Section 9.1 of this Agreement, the Company and Conexant
agree to provide each other with such information and assistance as is
reasonably necessary, including without limitation, access to records and
personnel, for the

 

27

 

preparation of
any Tax Returns or for the defense of any Tax claim or assessment that relates
to the Wafer Fabrication Operations or the Contributed Assets, whether in
connection with an audit or otherwise.

 

(d)           Conexant
shall promptly pay after the Closing when due all Taxes for Pre-Closing Tax
Periods that have given rise to, or could give rise to a lien on the
Contributed Assets in the hands of the Company (or in the hands of Newport Fab LLC after the Closing Date), provided however, that, in the case of any Taxes relating to the
Wafer Fabrication Operations and the Contributed Assets that are imposed on a
periodic basis and are payable for a Taxable period that includes (but does not
end on) the Closing Date, the portion of such Tax allocated to the Pre-Closing
Tax Period shall, (i) in the case of any Taxes based on the value of property,
such as property or ad valorem Tax, be deemed to be the amount of such Tax for
the entire Taxable period multiplied by a fraction the numerator of which is
the number of days in the Taxable period ending on the Closing Date and the
denominator of which is the number of days in the entire Taxable period, and
(ii) in the case of any other Tax, such as income, sales, or gross receipts
Tax, be deemed equal to the amount which would be payable if the relevant
Taxable period ended on the Closing Date. The Company shall be responsible for
and shall promptly pay when due any such Taxes that are not allocated to
Pre-Closing Tax Periods. In the event Conexant is required by any taxing
authority to pay any Taxes for which the Company is responsible pursuant to
this Section 4.10, Conexant shall provide to the Company a written notice
stating the amount and type of such Taxes due and the due date thereof at least
fourteen (14) days prior to such due date, and the Company shall reimburse
Conexant for such Taxes prior to such due date.

 

(e)           Conexant
shall deliver to the Company an executed affidavit, dated not more than thirty
(30) days prior to the Closing Date, in accordance with Code Section 1445(b)(2)
and Treasury Regulation Section 1.1445-(b)(2), which statement certifies that
Conexant is not a “foreign person” and sets forth Conexant’s name, identifying
number and address. Conexant shall deliver to the Company all clearance
certificates and similar documents that may be required by any state, local or
other taxing authority in order to relieve the Company of any obligation to
withhold or escrow any of the consideration to be paid to Conexant for the
benefit of such taxing authority.

 

(f)            Conexant
shall file all Tax Returns with respect to Pre-Closing Tax Periods on the basis
that the aggregate adjusted tax basis of the Contributed Assets is not less
than $232,574,697.25 as of January 31, 2002.

 

(g)           For
a period of twelve (12) months after the Closing Date, unless the Company
obtains the prior written consent of Conexant, the Company will not (i)
dissolve or liquidate Newport Fab LLC, (ii) merge Newport Fab LLC with the
Company or any entity that is an Affiliate of the Company prior to such merger,
or (c) cause Newport Fab LLC to distribute or otherwise transfer all or
substantially all of the Contributed Assets to the Company or any entity that
is an Affiliate of the Company prior to such distribution or transfer.

 

4.11        Update
of Schedules.  The parties acknowledge and agree that, no later
than five (5) days prior to the Closing Date, Conexant may update or supplement
Parts 2.1 through 2.19 of the Conexant Disclosure Schedule solely for the
purpose of reflecting events or occurrences

 

28

 

occurring
after the date hereof by providing to the Company and Carlyle an updated or
supplemented Conexant Disclosure Schedule (which shall be marked to show
changes against the original Conexant Disclosure Schedule). Such updated parts
of the Conexant Disclosure Schedule shall, solely for the purpose of Section
6.1 hereof (and not for the purpose of Section 8 hereof), be deemed to have
amended the relevant parts of the Conexant Disclosure Schedule unless the
events or occurrences reflected in such updated or supplemented parts of the
Conexant Disclosure Schedule have or would reasonably be expected to have a
Conexant Material Adverse Effect.

 

4.12        GE
Capital Lease Reimbursement.  Conexant shall, within 30 days of
receiving any invoice therefor from the Company from time to time, pay to the
Company an amount equal to fifty percent (50%) of all lease and other payments
actually paid by the Specialtysemi Group Companies under that certain equipment
lease agreement dated March 3, 2000 between General Electric Capital
Corporation and Conexant for that piece of equipment known as “193A-F Micrascan
Step and Scan Deep UV System” leased to Conexant.

 

4.13        Newport
Fab Contribution Agreement.  Between the date hereof and the
Closing Date, the Conexant Group Companies will not amend any provision of the
Newport Fab Contribution Agreement and neither of the Conexant Group Companies
will waive, release or compromise any right under the Newport Fab Contribution
Agreement.

 

4.14        TSMC
License Agreement.  Between the date hereof and the Closing Date,
the Conexant Group Companies will not and following the Closing, Conexant will
not, amend any provision of the TSMC License Agreement or waive, release or
compromise any right under the TSMC License Agreement if such amendment,
waiver, release or compromise would affect, limit or restrict any right of, or
create any obligation of, the Specialtysemi Group Companies, including, without
limitation, any rights with respect to the Transferred Intellectual Property or
the Licensed Intellectual Property.

 

5.             CONDITIONS
PRECEDENT TO CONEXANT’S OBLIGATION TO CLOSE.

 

Conexant’s
obligation to contribute the Membership Interests to the Company and to take
the other actions required to be taken by Conexant at the Closing is subject to
the satisfaction, as of the Closing, of each of the following conditions (any
of which may be waived by Conexant, in whole or in part, in writing):

 

5.1          Accuracy
of Representations.  All of the representations and warranties
made by Carlyle in this Agreement shall be accurate in all material respects as
of the date of this Agreement and as of the Closing Date (except to the extent
such representations and warranties specifically speak as of an earlier date,
in which case such representations and warranties shall be accurate in all
material respects as of such earlier date).

 

5.2          Performance
of Obligations.

 

(a)           Each
of the Transactional Agreements shall have been executed by each of the parties
thereto (other than Conexant) and delivered to Conexant; and

 

29

 

(b)           All
of the covenants and obligations that the Company and Carlyle are required to
comply with or to perform at or prior to the Closing (considered collectively),
and each of said covenants and obligations (considered individually), shall
have been duly complied with and performed in all material respects.

 

5.3          Governmental
Approvals.  All Wafer Fabrication Operations Permits that are
required to be issued in Newport Fab LLC’s name as of the Closing Date in order
for Newport Fab LLC to be able to conduct the Wafer Fabrication Operations in
the manner in which the Conexant Group Companies conducted such operations as
of immediately prior to the Closing Date without violating applicable Legal
Requirements shall have been issued in Newport Fab LLC’s name.

 

5.4          Governmental
Proceedings.  No Governmental Body shall have commenced any
Proceeding (i) involving any material challenge to, or seeking material
damages or other material relief in connection with, any of the Transactions,
or (ii) that may have the effect of preventing, delaying, making illegal
or otherwise interfering with any of the Transactions.

 

5.5          Receipt
of Consideration.  Conexant shall have received the consideration
and other items it is entitled to receive pursuant to Section 1.3.

 

5.6          Certificates.  Carlyle
shall have furnished Conexant with such certificates of its duly authorized
officers to evidence compliance with the conditions set forth in Section 5.1
and, to the extent applicable to Carlyle, Section 5.2(b), and the Company shall
have furnished Conexant with such certificates of its duly authorized officers
to evidence compliance with the conditions set forth in Section 5.2(b) to the
extent applicable to the Company.

 

5.7          Agreements
to be Delivered.  The form of each of the License Agreements, the
Real Property Lease Agreements, the IT Services Agreement and the Transition
Services Agreement executed and delivered by Carlyle or the Company at Closing
shall be acceptable to Conexant.

 

5.8          Warrant.

 

The form of
Warrant to be delivered by Conexant at Closing shall be acceptable to Conexant,
and all consents and approvals required for the issuance of the Warrant and the
shares issuable upon exercise of the Warrant shall have been obtained to the
reasonable satisfaction of Conexant.

 

6.             CONDITIONS
PRECEDENT TO CARLYLE’S OBLIGATION TO CLOSE.

 

Carlyle’s
obligation to contribute to the Company the cash contribution described in
Section 1.2 and to take the other actions required to be taken by Carlyle at
the Closing is subject to the satisfaction, as of the Closing, of each of the
following conditions (any of which may be waived by Carlyle, in whole or in
part, in writing):

 

6.1          Accuracy
of Representations.  Subject to, and as modified by the update or
supplement to the Conexant Disclosure Schedule contemplated by, Section 4.11,
all of the representations and warranties made by Conexant in this Agreement
and the Newport Fab

 

30

 

Contribution
Agreement shall be accurate in all material respects as of the date of this
Agreement and as of the Closing Date (except to the extent such representations
and warranties specifically speak as of an earlier date, in which case such
representations and warranties shall be accurate in all material respects as of
such earlier date).

 

6.2          Performance
of Obligations.

 

(a)           Each
of the Transactional Agreements shall have been executed by each of the parties
thereto (other than Carlyle or the Company) and delivered to Carlyle; and

 

(b)           all
of the covenants and obligations that Conexant is required to comply with or to
perform at or prior to the Closing, under this Agreement and the Newport Fab
Contribution Agreement shall have been duly complied with and performed in all
material respects.

 

6.3          Governmental
Proceedings. No Governmental Body shall have commenced any Proceeding
(i) involving any material challenge to, or seeking material damages or
other material relief in connection with, any of the Transactions or the
transactions contemplated by the Newport Fab Contribution Agreement, or
(ii) that may have the effect of preventing, delaying, making illegal or
otherwise interfering with any of the Transactions.

 

6.4          Consents
and Replacement Contracts.  Each of the Consents identified on
Schedule 6.4(a) shall have been obtained and each of the Contracts listed on
Schedule 6.4(a) shall have been assigned to Newport Fab LLC pursuant to the
Newport Fab Contribution Agreement and shall be in full force and effect, and
the Specialtysemi Group Companies shall have entered into Contracts replacing
the Shared Contracts listed on Schedule 6.4(b) on terms acceptable to Carlyle.

 

6.5          Governmental
Approvals.  All Wafer Fabrication Operations Permits that are
required to be issued in one or more of the Specialtysemi Group Companies’
names as of the Closing Date in order for the Specialtysemi Group Companies to
be able to conduct the Wafer Fabrication Operations in the manner in which the
Conexant Group Companies conducted such operations as of immediately prior to
the Closing Date without violating applicable Legal Requirements shall have
been issued in one of the Specialtysemi Group Companies’ names.

 

6.6          Material
Adverse Effect. There shall not have occurred (and be continuing) any
event, condition, or occurrence that has resulted in, or would reasonably be
expected to result in, a Conexant Material Adverse Effect.

 

6.7          Inventory.  The
raw material and work-in-process Inventory held by Newport Fab LLC shall have a
book value, determined in accordance with the calculation reflected on Schedule
6.7, of no less than $8,000,000. Conexant shall provide to Carlyle a detailed
schedule, certified as true and correct by an officer of Conexant, reflecting
the Inventory held by Newport Fab LLC as of the Closing Date, including a
breakdown between wafer fabrication and probe of the following items: (i) the
number of wafers included in such Inventory, (ii) the raw material value of
such wafers and (iii) any labor and overhead allocations.

 

31

 

6.8          Employment.

 

(a)           The
Employment Agreements shall be in a form acceptable to Carlyle and shall have
been executed by the Persons listed on Schedule 6.8(a);  and

 

(b)           At
least 75% of the Wafer Fabrication Operations Employees shall have accepted
offers of employment by the Specialtysemi Group Companies.

 

6.9          Company
Bank Account.  A checking account shall have been established for
the Company.

 

6.10        Certificates.  Conexant
shall have furnished Carlyle with such certificates of its duly authorized
officers and others to evidence compliance with the conditions set forth in
Sections 6.1, 6.2(b), and 6.7.

 

6.11        Agreements
to be Delivered.  The form of each of the License Agreements, the
Real Property Lease Agreements, the IT Services Agreement, the Employee Matters
Agreement and the Transition Services Agreement executed and delivered by
Conexant at the Closing shall be acceptable to Carlyle.

 

6.12        Conveyancing
Documents.  The documents and instruments executed and delivered
by Conexant and Newport Fab LLC to effect the Newport Fab Contribution shall be
delivered to Carlyle and such documents shall be in a form reasonably
acceptable to Carlyle.

 

6.13        Warrant.
The form of Warrant to be delivered by Conexant at the Closing shall be
acceptable to Carlyle, and all consents and approvals required for the issuance
of the Warrant and the shares issuable upon exercise of the Warrant shall have
been obtained to the reasonable satisfaction of Carlyle.

 

7.             TERMINATION.

 

7.1          Termination
Events. This Agreement may be terminated prior to the Closing:

 

(a)           by
Conexant or Carlyle if the Closing has not taken place on or before April 30,
2002 (the “Termination
Date”) (other than as a result of any failure on the part of the
terminating party to comply with or perform its covenants and obligations under
this Agreement);

 

(b)           by
the mutual written consent of Conexant and Carlyle;

 

(c)           by
Conexant if there is a material breach of any representation or warranty set
forth in Section 3 hereof or any covenant or agreement to be complied with or
performed by Carlyle pursuant to the terms of this Agreement, provided that Conexant may not terminate
this Agreement prior to the Closing for such breach unless Carlyle has failed
to cure such breach within thirty (30) days of receiving notice of such breach;
or

 

(d)           by
Carlyle if there is a material breach of any representation or warranty set
forth in Article 2 hereof or any covenant or agreement to be complied with or
performed by Conexant pursuant to the terms of this Agreement, provided that Carlyle may not terminate
this

 

32

 

Agreement
prior to the Closing for such breach unless Conexant has failed to cure such
breach within thirty (30) days of receiving notice of such breach.

 

7.2          Termination
Procedures.  If any party wishes to terminate this Agreement pursuant
to Section 7.1, the party shall deliver to the other parties a written
notice in accordance with Section 10.5 stating that it is terminating this
Agreement and setting forth a reasonably detailed description of the basis on
which it is terminating this Agreement.

 

7.3          Effect
of Termination.  If this Agreement is terminated pursuant to
Section 7.1, all further obligations of the parties under this Agreement shall
terminate; provided, however,
that: (a) no party shall be relieved of any obligation or other Liability
arising from any breach by such party of any provision of this Agreement prior
to such termination; (b) the parties shall, in all events, remain bound by and
continue to be subject to this Article 7 and the provisions set forth in
Article 10; and (c) the parties shall, in all events, remain bound by and
continue to be subject to Section 4.7 (Publicity).

 

7.4          Nonexclusivity
of Termination Rights.    The termination rights
provided in Section 7.1 shall not be deemed to be exclusive. Accordingly, the
exercise by any party of its right to terminate this Agreement pursuant to
Section 7.1 shall not be deemed to be an election of remedies and shall
not be deemed to prejudice, or to constitute or operate as a waiver of, any
other right or remedy that such party may be entitled to exercise (whether
under this Agreement, under any other Contract, under any statute, rule or
other Legal Requirement, at common law, in equity or otherwise).

 

8.             INDEMNIFICATION,
ETC.

 

8.1          Survival
of Representations and Warranties.    The
representations and warranties made by Conexant in Section 2 and by Carlyle in
Section 3 shall survive the Closing until eighteen (18) months following the
Closing Date; except that (i) the representations and warranties in Sections
2.5 (Intellectual Property) and 2.9 (Environmental Matters) and all claims and
causes of action with respect thereto, shall survive the Closing until the
fifth anniversary of the Closing Date; (ii) the representations and warranties
in Section 2.6 (Employee Matters) and in Section 2.15 (Tax Matters), and all
claims and causes of action with respect thereto, shall survive until ninety
(90) days after expiration of the applicable statutes of limitations with
extensions with respect to the matters addressed in such Section; and (iii) the
Newport Fab LLC Representations shall survive the Closing without limitation. If
a Claim Notice (as defined below) relating to any representation or warranty
set forth in any of said Sections is given to the appropriate party on or prior
to the expiration of the applicable survival period for such representation or
warranty, then, notwithstanding anything to the contrary contained in this
Section 8.1, such representation or warranty shall not expire, but rather shall
remain in full force and effect until such time as any breach or alleged breach
of such representation or warranty has been fully and finally resolved. For
purposes of this Agreement, a “Claim Notice” relating to a particular representation or
warranty shall be deemed to have been given if any Indemnitee, acting in good
faith, delivers to the indemnifying party a written notice stating that such
Indemnitee believes that there is or has been a possible breach of such
representation or warranty and containing (i) a reasonably detailed
description of the circumstances supporting such Indemnitee’s belief that there
is or has been such a possible breach, and (ii) if reasonably

 

33

 

determinable
under the circumstances, a non-binding, preliminary estimate of the aggregate
dollar amount of the actual Damages that have arisen as a result of such
possible breach.

 

8.2          Indemnification
by Conexant.

 

(a)           From
and after the date of this Agreement, Conexant shall hold harmless and
indemnify the Company Indemnitees and the Carlyle Indemnitees from and against,
and shall compensate and reimburse the Company Indemnitees and the Carlyle
Indemnitees for, any Damages that are suffered or incurred by the Company
Indemnitees or the Carlyle Indemnitees (regardless of whether or not such
Damages relate to any third-party claim) that arise from:

 

(i)            any
breach of any of the representations or warranties made by Conexant in Section
2 of this Agreement or the failure of any such representations or warranties to
be true and correct as of the Closing Date;

 

(ii)           any
breach of or noncompliance with any covenant or obligation of Conexant
contained in this Agreement or the Newport Fab Contribution Agreement;

 

(iii)         any Liability of Conexant or Newport Fab
LLC other than the Assumed Liabilities;

 

(iv)          any
Environmental Condition (or any Environmental Claim arising out of or relating
to any Environmental Condition) relating to the Wafer Fabrication Operations or
any of the Contributed Assets, or other operations, facilities, or assets of
the Conexant Group Companies, which condition was in existence on, or arose, on
or before the Closing Date, or that is attributable to the Wafer Fabrication
Operations or the Contributed Assets on or before the Closing Date, including but
not limited to, the scheduled items under Part 2.9 of the Conexant Disclosure
Schedule; provided, however, that
in the event that the Specialtysemi Group Companies shall be obligated to
undertake the Decommission Plan as contemplated by Section 4.10, Conexant shall
not be required to indemnify the Company Indemnitees or the Carlyle Indemnitees
for any costs, fees or other liabilities incurred by the Specialtysemi Group
Companies in connection with the Decommission Plan;

 

(v)            any
Liability arising out of the Collective Bargaining Agreement other than any
such Liability expressly included within the Assumed Liabilities;

 

(vi)          any
Liability arising out of the Conexant Group Companies’ failure to comply with
any bulk transfer Legal Requirement in connection with the transactions
contemplated in this Agreement and the Newport Fab Contribution Agreement; or

 

(vii)         any Liability arising out of (a) the
failure of the Retirement Plan to be qualified under the Code (other than any
failure first arising or occurring after May 1, 2002); (b) the failure to
prepare and distribute a summary plan description to participants and
beneficiaries of the Retirement Plan who were entitled to receive such summary
plan description prior to May 1, 2002; and (c) the failure of Conexant to
tender any contribution to the Retirement Plan required to be paid or which
accrue prior to May 1, 2002 pursuant to any applicable Legal Requirement. To
the extent that, following the Closing, the Internal Revenue Service notifies
the Company in writing that the Retirement Plan is not qualified under the Code
(other than a failure

 

34

 

first arising
or occurring after May 1, 2002), (i) the Company shall, as soon as may be
reasonably practical thereafter, remedy such failure or terminate the
Retirement Plan and replace such Retirement Plan with one or more plans that
are qualified under the Code and (ii) Conexant shall indemnify and hold
harmless the Company Indemnitees and the Carlyle Indemnitees for any and all
Damages incurred by the Company Indemnitees and the Carlyle Indemnitees arising
out of or relating to the remedy of such failure of the Retirement Plan to be
so qualified or the termination and replacement of the Retirement Plan
contemplated by the foregoing clause (i) of this sentence.

 

(b)           Conexant
shall not be required to make any indemnification payment pursuant to clause
(i) of Section 8.2(a) (other than for breach of the Newport Fab LLC
Representations) until such time as the total amount of all Damages (including
the Damages arising from such breach and all other Damages arising from any
other breaches of any representations or warranties) that have been suffered or
incurred by the Company Indemnitees and the Carlyle Indemnitees exceeds $1,000,000,
in which case the Company Indemnitees and the Carlyle Indemnitees shall be
entitled to be indemnified against and compensated and reimbursed only for that
portion of such Damages that exceed $1,000,000. The total amount of Damages
which Conexant shall be obligated to pay to the Company Indemnitees or Carlyle
Indemnitees pursuant to clause (i) of Section 8.2(a) of this Agreement (other
than for any IP Representation Breach and other than for any breach of a
Newport Fab LLC Representation) shall not exceed $10,000,000 in the aggregate,
and the total amount of Damages which Conexant shall be obligated to pay to the
Company Indemnitees or Carlyle Indemnitees for IP Representation Breaches
(other than for breaches of the TSMC Representations and Warranties) shall not
exceed $20,000,000 in the aggregate. The total amount of Damages which Conexant
shall be obligated to pay to the Company Indemnitees or Carlyle Indemnitees
pursuant to clause (i) of Section 8.2(a) (including for IP Representation
Breaches) shall not exceed $20,000,000 in the aggregate (other than for
breaches of the Newport Fab LLC Representations). Notwithstanding the
foregoing, (i) in the event that any Company Indemnitees or Carlyle Indemnitees
incur any Damages as a result of or relating to any breach of or any inaccuracy
of any TSMC Representation or Warranty and (ii) such Company Indemnitees or
Carlyle Indemnitees are not entitled to recover any portion of such Damages by
reason of the limitations set forth in the immediately preceding sentence, the
aggregate dollar amount of all Wafer Credits (as defined in the Long-Term
Supply Agreement) provided for under the Long-Term Supply Agreement shall be
reduced (but not by more than $20,000,000) by the amount of such Damages that
the Company Indemnitees and Carlyle Indemnitees are not entitled to recover by
reason of the limitations set forth in the immediately preceding sentence. The
foregoing limitations shall in no way limit the ability of any Company
Indemnitee or any Carlyle Indemnitee to recover for Damages pursuant to clauses
(ii) through (vi) of Section 8.2(a) or for any breach of the Newport Fab LLC
Representations.

 

35

 

8.3          Indemnification
by the Company.

 

(a)           From
and after the date of this Agreement, the Company shall hold harmless and
indemnify the Conexant Indemnitees and the Carlyle Indemnitees from and
against, and shall compensate and reimburse the Conexant Indemnitees and the
Carlyle Indemnitees for, any Damages that are suffered or incurred, directly or
indirectly, by the Conexant Indemnitees or the Carlyle Indemnitees (regardless
of whether or not such Damages relate to any third-party claim) that arise
from:

 

(i)            any
breach of any covenant or obligation of the Company contained in this
Agreement;

 

(ii)           any
failure on the part of the Specialtysemi Group Companies to guarantee, perform
and discharge the Assumed Liabilities on a timely basis;

 

(iii)         any Environmental Condition (or any
Environmental Claim arising out of or relating to any Environmental Condition)
relating to the Wafer Fabrication Operations or any of the Contributed Assets,
which condition arises after the Closing Date as a result of (A) a release,
discharge or spill of Hazardous Materials by the Specialtysemi Group Companies
following the Closing (or any Person present at the Newport Beach Fab Facility
by invitation of the Specialtysemi Group Companies following the Closing), or
(B) any of the Specialtysemi Group Companies’ negligent or unlawful conduct
following the Closing; provided further, however, that the indemnification
obligations set forth in this Section 8.3(a)(iii) shall in no way limit the
right of the Company Indemnitees and the Carlyle Indemnitees to indemnification
for breach of the representations set forth in Section 2.9; or

 

(iv)          any
Liability arising out of the Collective Bargaining Agreement to the extent
expressly included in the Assumed Liabilities.

 

8.4          Indemnification
by Carlyle.

 

(a)           From
and after the date of this Agreement, Carlyle shall hold harmless and indemnify
the Company Indemnitees and the Conexant Indemnitees from and against, and
shall compensate and reimburse the Company Indemnitees and the Conexant
Indemnitees for, any Damages that are suffered or incurred, directly or
indirectly, by the Company Indemnitees or the Conexant Indemnitees (regardless
of whether or not such Damages relate to any third-party claim) that arise
from:

 

(i)            any
breach of any of the representations or warranties made by Carlyle in Section 3
of this Agreement or the failure of any such representations or warranties to
be true and correct as of the Closing Date; or

 

(ii)           any
breach of or noncompliance with any covenant or obligation of Carlyle contained
in this Agreement.

 

(b)           Carlyle
shall not be required to make any indemnification payment pursuant to clause
(i) of Section 8.4(a) until such time as the total amount of all Damages
(including the Damages arising from such breach and all other Damages arising
from any other

 

36

 

breaches of
any representations or warranties) that have been suffered or incurred by any
one or more of the Company Indemnitees or the Conexant Indemnitees exceeds
$1,000,000. If the total amount of such Damages exceeds $1,000,000, the Company
Indemnitees shall be entitled to be indemnified against and compensated and
reimbursed only for that portion of such Damages that exceed $1,000,000. The
total amount of Damages which Carlyle shall be obligated to pay to the Company
Indemnitees pursuant clause (i) of Section 8.4(a) of this Agreement shall not
exceed $10,000,000. The foregoing limitations shall in no way limit the ability
of any Conexant Indemnitee or any Company Indemnitee to recover Damages
pursuant to clause (ii) of Section 8.4(a).

 

8.5          Setoff.  The
parties hereto agree that any payments required to be made by any party
pursuant to this Section 8 shall be made without any withholding, deduction or
set-off, and each party hereto agrees not to assert a right of set-off at
common law or otherwise. All amounts paid with respect to indemnity claims
under this Agreement, and amounts paid pursuant to Sections 1.4, 1.5, and 10.3
of this Agreement, shall be treated by the parties hereto for all Tax purposes
as purchase price adjustments other than amounts paid pursuant to Sections 1.4
and 1.5, which are required to be treated as interest payments under the Code
or the Treasury Regulations promulgated thereunder.

 

8.6          Defense
of Third Party Claims. In the event of the assertion or commencement by any
Person (other than any party hereto) of any claim or Proceeding (whether
against the Company, Carlyle or Conexant, or against any other Indemnitee or
against any other Person) with respect to which any party hereto may become
obligated to indemnify, hold harmless, compensate or reimburse any Indemnitee
pursuant to this Section 8, the Indemnitee shall have the right, at its
election, to either (i) assume the defense of such claim at the Indemnitee’s
sole expense, or (ii) designate the indemnifying party to assume the defense of
such claim or Proceeding at the sole expense of the indemnifying party. If the
Indemnitee so elects to designate the indemnifying party to assume the defense
of any such claim or Proceeding:

 

(a)           the
indemnifying party shall proceed to defend such claim or Proceeding in a
diligent manner with counsel reasonably satisfactory to the Indemnitee;

 

(b)           the
Indemnitee shall make available to the indemnifying party any non-privileged
documents and materials in the possession of the Indemnitee that may be
necessary to the defense of such claim or Proceeding;

 

(c)           the
indemnifying party shall keep the Indemnitee informed of all material
developments and events relating to such claim or Proceeding;

 

(d)           the
Indemnitee (at its own expense) shall have the right to participate in the
defense of such claim or Proceeding;

 

(e)           the
indemnifying party shall not settle, adjust or compromise such claim or
Proceeding without the prior written consent of the Indemnitee; and

 

(f)            the
Indemnitee may at any time (notwithstanding the prior designation of the
indemnifying party to assume the defense of such claim or Proceeding) assume
the defense of such claim or Proceeding at its own expense.

 

37

 

If the Indemnitee does not elect
to designate the indemnifying party to assume the defense of any such claim or
Proceeding (or if, after initially designating the indemnifying party to assume
such defense, the Indemnitee elects to assume such defense), the Indemnitee may
proceed with the defense of such claim or Proceeding on its own. If the
Indemnitee so proceeds with the defense of any such claim or Proceeding on its
own:

 

(i)            all
expenses relating to the defense of such claim or Proceeding (whether or not
incurred by the Indemnitee) shall be borne and paid exclusively by the
Indemnitee;

 

(ii)           the
indemnifying party shall make available to the Indemnitee any documents and
materials in the possession or control of either of the indemnifying party that
may be necessary to the defense of such claim or Proceeding;

 

(iii)         the Indemnitee shall keep the indemnifying
party informed of all material developments and events relating to such claim
or Proceeding; and

 

(iv)          the
Indemnitee shall have the right to settle, adjust or compromise such claim or
Proceeding with the prior written consent of the indemnifying party; provided, however, that the indemnifying
party shall not unreasonably withhold such consent. Such consent will not be
considered to have been unreasonably withheld if the settlement, adjustment or
compromise does not provide for a full release of the indemnifying party from
any further claims with respect to the matter at issue.

 

The foregoing provisions of this Section 8.6 shall not apply to any
claim or Proceeding subject to indemnification pursuant to Section 8.10.

 

8.7          Sole
and Exclusive Remedy.  The indemnification rights set forth in
this Section 8 shall be the sole and exclusive remedy of any party hereto
following the Closing with respect to any claim directly or indirectly (whether
in tort, at law or in equity) arising out of or resulting from this Agreement,
and, except with respect to Sections 1.4 and 1.5, the dispute resolution
procedures in Section 10.18 shall be the sole method by which to resolve any
such claim.

 

8.8          Exercise
of Remedies by Indemnitees other than Parties to this Agreement.

No Indemnitee
(other than the parties to this Agreement or any successor thereto or assign
thereof) shall be permitted to assert any indemnification claim or exercise any
other remedy under this Agreement unless the respective party to this Agreement
entitled to indemnification (or any successor thereto or assign thereof) shall
have consented in writing to the assertion of such indemnification claim or the
exercise of such other remedy.

 

8.9          Additional
Procedures Relating to Environmental Claims.

 

(a)           Section
8.6 shall govern the procedures for indemnification of any Environmental
Condition or Environmental Claim brought by a third party. With respect to any
Environmental Claim for which a party seeks any indemnification pursuant to
this Section 8, the Indemnitee shall be entitled to participate in the defense
of such Environmental Claim pursuant to Section 8.6, and such participation
shall include:  (i) receiving copies of
all reports, work plans and analytical data submitted to governmental agencies,
any other non-privileged documents and

 

38

 

correspondence
materially bearing on the Environmental Claim, and notices of material
meetings; (ii) the opportunity to attend and participate in such material
meetings; and (iii) the right of reasonable consultation with the indemnifying
party.

 

(b)           With
respect to any Environmental Condition or Environmental Claim brought by a
third party for which the Indemnitee designates the indemnifying party to
assume the defense pursuant to Section 8.6, the indemnifying party shall
exercise its authority in good faith and in a responsible manner, and any
activities conducted in connection therewith shall be undertaken promptly and
concluded as expeditiously and as economically as practicable using
commercially reasonable efforts, subject to the schedules and approvals
required by the applicable Governmental Bodies. Any actions taken by the
indemnifying party shall not unreasonably interfere with the operation of the
Wafer Fabrication Operations. The parties agree to reasonably cooperate with
one another in connection with addressing any Environmental Claim brought by a
third party for which a party seeks any indemnification pursuant to Section 8. Either
party may take such action as is reasonable under the circumstances to respond
to an actual or threatened emergency or imminent endangerment situation arising
from any Environmental Claim brought by a third party for which a party seeks
any indemnification pursuant to Section 8.

 

(c)             With respect to any Environmental
Claim for which Conexant seeks indemnification pursuant to Section 8.3(a)(iii)
from the Company, and which is alleged to have resulted from the Company’s
release, discharge or spill of any Hazardous Materials present in the soil or
groundwater prior to the Closing Date, a rebuttable presumption shall exist
that the Hazardous Materials involved in the Environmental Claim for which
Conexant seeks indemnification were present in the soil or groundwater prior to
the Closing Date. Such presumption shall be rebuttable by clear and convincing
evidence.

 

8.10        Additional
Indemnification by Conexant

 

(a)           In
addition to the indemnification obligations of Conexant set forth in
Section 8.2 and notwithstanding any disclosure set forth in the Conexant
Disclosure Schedules, Conexant agrees to indemnify and hold harmless the
Company Indemnitees from and against 60% of any and all royalties or similar
payments that are actually paid by the Company or any of its Subsidiaries or
their respective successors in interest arising out of any infringement,
misappropriation or violation of any patents, patent applications or other
rights (the “Licensed Rights”) licensed under or pursuant to that certain
Agreement dated January 1, 1991 by and between International Business
Machines Corporation and Rockwell International Corporation as
a result of or related to the manufacture, development, fabrication or sale of
any SiGe Products, including, without limitation, any royalties or similar
payments actually paid pursuant to any license or similar agreement entered
into by the Company or any Subsidiary to avoid, settle or compromise any claim
of, or satisfy any judgment, determination or finding of, infringement,
misappropriation or violation (any such infringement, misappropriation or
violation being referred to as a “Specified Infringement”) of any Licensed
Rights as a result of the manufacture, development, fabrication or sale of SiGe
Products by the Company or its Subsidiaries following Closing.

 

(b)           In
the event of any assertion or commencement by any Person of any claim or
Proceeding against the Company or any Subsidiary in respect of or relating to
any Specified Infringement, the Company shall (i) notify Conexant in writing,
(ii) have the right to

 

39

 

defend such
claim or Proceeding and (iii)  be entitled to settle, adjust or compromise
such Proceeding (without the consent of Conexant). Any settlement of any such
claim or Proceeding without the consent of Conexant shall not limit or impair
the ability of the Company to recover the amounts specified in Section 8.10(a).
Conexant shall reasonably cooperate with the Company in connection with the
Company’s defense of such claim or Proceeding (at the cost and expense of
Conexant) and shall provide to the Company such information as may be
reasonably requested by the Company in connection with the defense of such
claim or Proceeding; provided that such cooperation shall not require Conexant
to defend any such claim or Proceeding.

 

(c)           Any
amounts which the Company Indemnitees shall be entitled to recover from
Conexant pursuant to Section 8.10(a) (the “Recovered Amounts”) shall be
recovered by reducing any payments to be made by the Company pursuant to
Section 1.5 by any Recovered Amounts, and such reduction in payments shall be
the sole and exclusive source of payment of the indemnification obligations of
Conexant pursuant to this Section 8.10(a).

 

9.             COVENANTS
OF THE PARTIES AFTER THE CLOSING.

 

9.1          Access
to Information.  In order to facilitate the resolution of any
claims made against or incurred by any party following the Closing, for a
period of seven years after the Closing, each of Conexant and the Specialtysemi
Group Companies shall (i) retain all books, records, documents and other
information pertaining to the Wafer Fabrication Operations, the Contributed
Assets, the Assumed Liabilities, and the Excluded Liabilities, in a manner
reasonably consistent with the standard industry practices or with GAAP, if
applicable, and (ii) upon reasonable notice, afford the officers, employees,
authorized agents, accountants, counsel and representatives of the other
parties reasonable access (including the right to make photocopies at such
other party’s expense) during normal business hours, to such books, records
documents and other information.

 

9.2          Election
Out of Installment Method.  Conexant may, in its sole discretion,
choose to make the election described in Section 453(d) of the Code, with
respect to the transactions contemplated hereby, provided that Conexant and the
Company agree on the fair market value of the Company’s obligation to make
payments to Conexant pursuant to Sections 1.4 and 1.5 of this Agreement.

 

9.3          Certain
Agreements Concerning the Specified Excluded Assets. Following the Closing,
Conexant shall provide to the Specialtysemi Group Companies, at no cost to the
Specialtysemi Group Companies, complete, unfettered and exclusive use of and
access to the assets listed on Schedule 1.1 (b) and the assets physically
located on the floor plan attached to Schedule 1.1(b) (the “Specified Excluded Assets”)
which shall include the right to repair and maintain the Specified Excluded
Assets. At all times following the Closing, the Company shall maintain the
Specified Excluded Assets to the extent and in the manner determined by the
Specialtysemi Group Companies. Conexant agrees that at all times prior and
subsequent to the Closing, Conexant will not (i) remove any of the Specified
Excluded Assets from their current location or (ii) sell, transfer, convey or
encumber any interest in any of the Specified Excluded Assets. The
Specialtysemi Group Companies shall have no liability to pay any amount to

 

40

 

Conexant in
respect of the use of and access to the Specified Excluded Assets provided
pursuant to this Section 9.3.

 

10.          MISCELLANEOUS
PROVISIONS.

 

10.1        Publicity.  Without
limiting the generality of anything contained in Section 4.7, each party
to this Agreement shall ensure that, on and at all times after the Closing
Date: (a) no press release or other publicity concerning any of the
Transactions is issued or otherwise disseminated by or on behalf of such party
without the other party’s prior written consent; (b) such party shall continue
to keep the terms of this Agreement and the other Transactional Agreements
strictly confidential; and (c) such party shall keep strictly confidential, and
shall not use or disclose to any other Person (other than a Representative or
investor of the disclosing party), any non-public document or other non-public
information that relates directly or indirectly to the business of the Company.
Notwithstanding the provisions of Section 4.7 or this Section 10.1, any
party to this Agreement shall be permitted to disclose the terms of the Agreement
in order to comply with applicable laws or regulations (such as disclosure to
the United States Securities and Exchange Commission or to their foreign
equivalents), or to comply with a court or administrative order, provided that
the other parties hereto receives prior written notice of such disclosure and
that the disclosing party takes all reasonable and lawful actions to obtain
confidential treatment for such disclosure and, if possible, to minimize the
extent of such disclosure.

 

10.2        Further
Assurances.    Each party hereto shall execute and/or
cause to be delivered to each other party hereto such instruments and other
documents, and shall take such other actions, as such other party may
reasonably request (prior to, at or after the Closing) for the purpose of
carrying out or evidencing any of the Transactions.

 

10.3        Fees
and Expenses.

 

(a)           Each
party to this Agreement shall bear and pay all fees, costs and expenses
(including all legal fees and expenses) that have been incurred or that are in
the future incurred by, on behalf of or for the benefit of such party in
connection with:  (i) the negotiation,
preparation and review of any letter of intent or similar document relating to
any of the Transactions; (ii) the investigation and review conducted by such
party and its Representatives with respect to the Transactions; (iii) the
negotiation, preparation and review of this Agreement, the other Transactional
Agreements and all bills of sale, assignments, certificates, opinions and other
instruments and documents delivered or to be delivered in connection with the
Transactions; (iv) the preparation and submission of any filing or notice
required to be made or given in connection with any of the Transactions, and
the obtaining of any Consent required to be obtained in connection with any of
the Transactions; and (v) the consummation and performance of the Transactions;
provided however, that, if the
Closing shall occur, then the Company shall pay (i) to Carlyle an amount equal
to the total amount of all fees, costs and expenses incurred by Carlyle
(including without limitation all accounting, legal, environmental consulting,
financial and investment banking fees, costs and expenses) in connection with
the Transactions up to a maximum of $4,500,000 (which amount shall include the
transaction fees payable to Carlyle pursuant to Section 3(b) of the Carlyle
Management Services Agreement), and (ii) to Conexant an amount equal to the
total amount of all outside legal fees, costs and

 

41

 

expenses
incurred by Conexant in connection with the Transactions. Any payments required
to be made by the Company to Carlyle or Conexant pursuant to the preceding
sentence shall be made by wire transfer of immediately available funds to the
relevant party within five (5) business days of the receipt by the Company from
time to time of one or more invoices from Carlyle or Conexant, as applicable,
reflecting such fees, costs and expenses.

 

10.4        Attorneys’
Fees.  If any legal action or other legal proceeding relating to
any of the Transactional Agreements or the enforcement of any provision of any
of the Transactional Agreements is brought against any party to this Agreement,
the prevailing party shall be entitled to recover reasonable attorneys’ fees,
costs and disbursements (in addition to any other relief to which the
prevailing party may be entitled).

 

10.5        Notices.    Any
notice or other communication required or permitted to be delivered to any
party under this Agreement shall be in writing and shall be deemed properly
delivered, given and received when delivered (by hand, by registered mail, by
courier or express delivery service or by facsimile) to the address or
facsimile telephone number set forth beneath the name of such party below (or
to such other address or facsimile telephone number as such party shall have
specified in a written notice given to the other parties hereto):

 

if to
Conexant:

 

Conexant
Systems, Inc.

4311 Jamboree
Road

Newport Beach,
CA  92660

Attn:  General Counsel

Facsimile:  (949) 483-9576

 

with a copy
to:

 

Cooley Godward
LLP

4401 Eastgate
Mall

San Diego,
CA  92121

Attn:  Carl R. Sanchez, Esq.

Facsimile:  (858) 550-6420

 

42

 

if to the
Company or Carlyle:

 

Carlyle Capital
Investors, L.L.C.

c/o The
Carlyle Group

101 S. Tryon
Street, 25th Floor

Charlotte,
N.C., 28280

Attn:  Claudius E. Watts, IV

Facsimile:  (704) 632-0299

 

with a copy
to:

 

Latham &
Watkins

555 11th
Street N.W., Ste 1000

Washington,
D.C., 20004-1304

Attn:       Raymond
B. Grochowski, Esq.

Facsimile:  (202) 637-2201

 

10.6        Time
of the Essence. Time is of the essence of this Agreement.

 

10.7        Headings.  The
headings contained in this Agreement are for convenience of reference only,
shall not be deemed to be a part of this Agreement and shall not be referred to
in connection with the construction or interpretation of this Agreement.

 

10.8        Governing
Law.  This Agreement shall be construed in accordance with, and
governed in all respects by, the internal laws of the State of Delaware
(without giving effect to principles of conflicts of laws).

 

10.9        Successors
and Assigns; Parties in Interest.

 

(a)           This
Agreement shall be binding upon and inure to the benefit of the Company;
Conexant; and Carlyle, and the respective successors and assigns (if any) of
the foregoing.

 

(b)           No
party to this Agreement shall be permitted to assign any of his or its rights
or delegate any of his or its obligations under this Agreement without the
prior written consent of the other parties; except that (i) Carlyle may,
without such consent, assign all such rights to any Affiliate controlling
Carlyle or to any Person providing financing to the Company as collateral
security for such financing provided that no such assignment shall relieve the
Company or Carlyle from any of their respective obligations hereunder, (ii)
Conexant may, without such consent, assign all such rights to any Affiliate
controlling Conexant, and (iii) following the Closing, any party may, without
such consent, assign all such rights to any Person who acquires, directly or
indirectly, all or any substantial portion of the assets or securities of such
Person.

 

(c)           None
of the provisions of this Agreement is intended to provide any rights or
remedies to any Person other than the parties to this Agreement and their
respective successors and assigns (if any). Without limiting the generality of
the foregoing, (i) no employee of Conexant shall have any rights under this
Agreement or under any of the other Transactional Agreements (other than the
Employment Agreements), and (ii) no creditor of Conexant, Carlyle

 

43

 

or the Company
shall have any rights under this Agreement or any of the other Transactional
Agreements.

 

10.10      Remedies Cumulative; Specific Performance.  The
rights and remedies of the parties hereto shall be cumulative (and not
alternative). The parties hereto agree that: (a) in the event of any breach or
threatened breach by any party of any covenant, obligation, or other provision
of this Agreement applicable to such party, the other parties shall be entitled
(in addition to any other remedy that may be available) to (i) a decree or
order of specific performance or mandamus to enforce the observance and
performance of such covenant, obligation or other provision, and (ii) an
injunction restraining such breach or threatened breach; and (b) neither such
other parties nor any other Indemnitee shall be required to provide any bond or
other security in connection with any such decree, order or injunction or in
connection with any related action or Proceeding.

 

10.11      Waiver.

 

(a)           No
failure on the part of any Person to exercise any power, right, privilege or
remedy under this Agreement, and no delay on the part of any Person in exercising
any power, right, privilege or remedy under this Agreement, shall operate as a
waiver of such power, right, privilege or remedy; and no single or partial
exercise of any such power, right, privilege or remedy shall preclude any other
or further exercise thereof or of any other power, right, privilege or remedy.

 

(b)           No
Person shall be deemed to have waived any claim arising out of this Agreement,
or any power, right, privilege or remedy under this Agreement, unless the
waiver of such claim, power, right, privilege or remedy is expressly set forth
in a written instrument duly executed and delivered on behalf of such Person;
and any such waiver shall not be applicable or have any effect except in the
specific instance in which it is given.

 

10.12      Amendments.  This Agreement may not
be amended, modified, altered or supplemented other than by means of a written
instrument duly executed and delivered on behalf of Conexant and Carlyle. The
Company expressly agrees, by the signature of its authorized representative on
the signature page hereof, that no amendment shall require the consent or
signature of the Company.

 

10.13      Severability .  In the event that
any provision of this Agreement, or the application of any such provision to
any Person or set of circumstances, shall be determined to be invalid,
unlawful, void or unenforceable to any extent, the remainder of this Agreement,
and the application of such provision to Persons or circumstances other than
those as to which it is determined to be invalid, unlawful, void or
unenforceable, shall not be impaired or otherwise affected and shall continue
to be valid and enforceable to the fullest extent permitted by law.

 

10.14      Counterparts. This Agreement may be executed
in several counterparts, each of which shall constitute an original and all of
which, when taken together, shall constitute one agreement.

 

10.15      Entire Agreement. This Agreement and the
Transactional Agreements, together with all exhibits and schedules hereto and
thereto, and that certain Non-Disclosure Agreement

 

44

 

dated October
12, 2001 by and between Conexant and TC Group, LLC set forth the entire
understanding of the parties relating to the subject matter hereof and thereof
and supersede all prior agreements and understandings among or between any of
the parties relating to the subject matter hereof and thereof.

 

10.16      Construction.

 

(a)           For
purposes of this Agreement, whenever the context requires:  the singular number shall include the plural,
and vice versa; the masculine gender shall include the feminine and neuter
genders; the feminine gender shall include the masculine and neuter genders;
and the neuter gender shall include the masculine and feminine genders.

 

(b)           The
parties hereto agree that any rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not be applied
in the construction or interpretation of this Agreement.

 

(c)           All
monetary amounts referenced herein are denominated in United States Dollars.

 

(d)           As
used in this Agreement, the words “include” and “including,” and variations
thereof, shall not be deemed to be terms of limitation, but rather shall be
deemed to be followed by the words “without limitation.”

 

(e)           Except
as otherwise indicated, all references in this Agreement to “Sections” and “Exhibits” are
intended to refer to Sections of this Agreement and Exhibits to this Agreement.

 

10.17      No Implied Licenses.  Nothing in
this Agreement is intended or shall be construed to grant to the Company,
Carlyle or any other Person, by implication, estoppel or otherwise, any license
under any Intellectual Property (other than the licenses granted pursuant to
the License Agreements) owned by Conexant that is not included within the
Contributed Assets.

 

10.18      Dispute Resolution; Arbitration.

 

(a)           The
parties hereto will act in good faith and use commercially reasonable efforts
to promptly resolve any claim, dispute, controversy or disagreement arising out
of or relating to or in connection with this Agreement or the breach,
termination or validity hereof (each a “Dispute”) between the parties or any of
their respective Subsidiaries or affiliates under or related to this Agreement
or any of the transactions contemplated hereby.

 

(b)           Upon
the written request (a “Request”)
of any party, the relevant parties shall commence good faith negotiations with
the goal of resolving the Dispute on a mutually satisfactory basis. If the
Dispute has not been resolved to the satisfaction of all relevant parties
within fifteen (15) calendar days after the date on which the Request is
delivered, the Dispute shall immediately be referred to senior officers of each
relevant party. The senior officers of each party (e.g., chief executive officer and/or chief financial officer
or senior or executive vice president) shall meet immediately, and in no case
later than 30 calendar days after the date on which the Request is delivered,
for a minimum of two business days with a mutually selected

 

45

 

mediator and
attempt in good faith to negotiate a resolution of the Dispute. If the parties
are unable to resolve the Dispute within 35 calendar days after the date on
which the Request is delivered, then any relevant party may submit the Dispute
to arbitration as the exclusive means of resolving it in accordance with the
procedures set forth in this Section.

 

(c)           Except
as otherwise specified in this Section, any Dispute not resolved through the
procedure set forth above shall be finally settled by arbitration in accordance
with the Rules and Procedures of the American Arbitration Association (the “Arbitration Rules”),
which are deemed to be incorporated by reference herein except as otherwise
modified herein.

 

(d)           The
arbitration situs shall be Wilmington, Delaware, and the laws of the State of
Delaware shall be applied.

 

(e)           In
the event of an arbitration involving two parties, there shall be one
arbitrator who shall be jointly nominated by such parties. In the event of an
arbitration involving more than two parties, there shall be three arbitrators
who shall be jointly nominated by the parties. If the parties fail to so
nominate the arbitrators within 30 days from the date when the Dispute is
submitted to arbitration pursuant to this Section, at the request of any party,
the arbitrator(s) shall be appointed in accordance with the Arbitration Rules.

 

(f)            The
arbitration hearing shall commence no later than 30 days following the
appointment of the sole arbitrator or after the appointment of the last of the
three arbitrators, as the case may be, and the final award shall be rendered no
later than 30 calendar days following the close of the hearing.

 

(g)           Consistent
with the expedited nature of arbitration, each party will, upon the written
request of the other party, provide the other with copies of documents relevant
to the issue raised by any claim or counterclaim. Other discovery may be
ordered by the panel to the extent the panel deems additional discovery
relevant and appropriate, and any dispute regarding discovery, relevance or
scope thereof, shall be determined by the panel, which determination shall be
conclusive.

 

(h)           By
agreeing to arbitration, the parties do not intend to deprive any court of its
jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment,
injunctive or other equitable relief or an order in aid of arbitration
proceedings and the enforcement of any award. Without prejudice to such
provisional remedies in aid of arbitration as may be available under the
jurisdiction of a national court, the arbitral tribunal shall have full
authority to grant provisional remedies and to award damages for the failure of
any party to respect the arbitral tribunal’s orders to that effect.

 

(i)            The
award shall be final and binding upon the parties, and shall be the sole and
exclusive remedy between the parties regarding any claims, counterclaims,
issues, or accounting presented to the arbitral tribunal in connection with the
Dispute. Judgment upon any award may be entered in any court having competent
jurisdiction thereof.

 

(j)            The
costs of the arbitration shall be borne as determined in accordance with the
Arbitration Rules; provided, however,
that to the extent a party is non-prevailing or unsuccessful on a claim in an
arbitration proceeding under this Section, as determined by the

 

46

 

arbitrator(s),
that party shall pay the prevailing or successful party’s costs and expenses
incurred in connection with the arbitration of that Dispute, including
attorneys’ fees and arbitration expenses, whether or not such Dispute is
prosecuted to award or judgment.

 

(k)           Subject
to the receipt of any applicable governmental approval, any monetary award
shall be made and promptly payable in U.S. dollars if due in U.S. dollars, free
of any deduction or offset, and the arbitral tribunal shall be authorized in
its discretion to grant pre-award and post-award interest at commercial rates. The
arbitral tribunal shall have the authority to award any remedy or relief
proposed by the claimants or respondents pursuant to this Agreement, including
without limitation, a declaratory judgment, specific performance of any
obligation created under this Agreement or the issuance of an injunction.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

47

 

The parties to this Agreement
have caused this Agreement to be executed and delivered as of the date first
above written.

 

	
   

  	
  SPECIALTYSEMI, INC.,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  \s\ Claudius
  E. Watts IV

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Claudius E.
  Watts IV

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CONEXANT SYSTEMS, INC.,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  \s\ Dwight
  Decker

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Dwight
  Decker

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CARLYLE CAPITAL INVESTORS, L.L.C.

  
	
   

  	
  a Delaware
  limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  \s\ Claudius
  E. Watts IV

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Claudius E.
  Watts IV

  
	
   

  	
   

  	
  Title:

  	
  President

  
						

 

 

[SIGNATURE PAGE TO ASSET CONTRIBUTION
AGREEMENT]

 

 

EXHIBIT
A

 

CERTAIN
DEFINITIONS

 

For purposes
of the Agreement (including this Exhibit A):

 

“Affiliate” shall
mean, with respect to any Entity, any other Entity controlled by, controlling,
or under common control with such first Entity.

 

“Agreement” shall mean
the Asset Contribution Agreement to which this Exhibit A is attached (including the
Conexant Disclosure Schedule and the Carlyle Disclosure Schedule), as it may be
amended from time to time.

 

“Assumed Liabilities”
shall mean only the following Liabilities:

 

(i)            all
Liabilities arising under or out of the Transferred Contracts (other than
Liabilities arising out of breaches or violations by the Conexant Group
Companies occurring prior to the Closing Date) for performance of or payments
to be made under the Transferred Contracts that accrue in respect of events
following the Closing Date; provided however,
that any payment obligations arising under the Transferred Contracts for
products or services received by the Conexant Group Companies prior to the
Closing Date shall not be deemed an Assumed Liability, and Conexant shall
remain liable for any such payments;

 

(ii)           all
Liabilities arising, accruing or occurring under or out of that certain Labor
Agreement, effective May 1, 1998 between Conexant and Local Union No. 2295 of
the International Brotherhood of Electrical Workers (the “Collective Bargaining Agreement”)
on or after June 1, 2002 to the extent provided in the Employee Matters
Agreement;

 

(iii)         all Liabilities other than Excluded
Liabilities arising on or after the Closing Date out of the ownership or use of
the Contributed Assets or the conduct of the Wafer Fabrication Operations by
the Specialtysemi Group Companies on or after the Closing Date;

 

(iv)          all
Liabilities related to the capital expenditures and other acquisition
commitments identified on Schedule 1.2(b)(v); and

 

(v)            all
employment related liabilities set forth on Schedule 1.2(b)(ii).

 

“Carlyle Disclosure
Schedule”  shall mean the schedule of exceptions
(dated as of the date of the Agreement), delivered by Carlyle, if any that is
attached to the Agreement and incorporated in the Agreement by reference.

 

“Carlyle Indemnitees”
shall mean the following Persons: (a) Carlyle; (b) Carlyle’s current and future
Affiliates (other than the Company); (c) the respective Representatives of the
Persons referred to in clauses (a) and (b) above; and (d) the respective
successors and assigns of the Persons referred to in clauses (a) through (c)
above.

 

A-1

 

“Carlyle Material
Adverse Effect” shall mean any change in, or
circumstances relating to, Carlyle that adversely affects Carlyle’s ability to
contribute the cash to the Company pursuant to Section 1.2 of this Agreement.

 

“Class A Common
Stock” shall mean the class of Common Stock of the
Company that at all times, in the aggregate, carries at least 51% of the total
equity voting power of the Company, regardless of the Percentage Interest
represented thereby, and for which all other terms are identical to Class B
Common Stock.

 

“Class B Common
Stock” shall mean the class of Common Stock of the
Company consisting of all Common Stock that is not Class A Common Stock, and
that is subject to terms that are identical to Class A Common Stock except for
aggregate voting percentage.

 

“Code” shall mean the
Internal Revenue Code of 1986, as amended.

 

“Common Stock”
shall mean the common stock of the Company, par value $.001 per share,
including all of the Class A Common Stock and the Class B Common Stock.

 

“Company Indemnitees”
shall mean the following Persons: (a) the Company and Newport Fab LLC; (b) the
Company’s current and future Affiliates (other than Carlyle or Conexant); (c)
the respective Representatives of the Persons referred to in clauses (a) and
(b) above; and (d) the respective successors and assigns of the Persons
referred to in clauses (a) through (c) above.

 

“Conexant Disclosure
Schedule”  shall mean the schedule of exceptions
(dated as of the date of the Agreement), delivered by Conexant, if any, a copy
of which is attached to the Agreement and incorporated in the Agreement by
reference.

 

“Conexant Group
Companies” shall mean, collectively: (i) Conexant
and (ii) at all times prior to the Closing, Newport Fab LLC.

 

“Conexant Indemnitees”
shall mean the following Persons: (a) Conexant; (b) Conexant’s current and future
Affiliates (other than the Company); (c) the respective Representatives of the
Persons referred to in clauses (a) and (b) above; and (d) the respective
successors and assigns of the Persons referred to in clauses (a) through (c)
above.

 

“Conexant Material
Adverse Effect”  means any change, event, or
circumstance that results in a material adverse effect or change in the
Contributed Assets, Assumed Liabilities, or the results of operations,
condition (financial or otherwise) or business of the Wafer Fabrication
Operations; provided however, in
no event shall any of the following, either individually or in combination,
constitute a Conexant Material Adverse Effect: (i) changes in general business
or economic conditions, (ii) any circumstance, change, or effect solely
resulting from or arising out of, directly or indirectly, the fact that the
Company or Carlyle (rather than another party) is a party to the transactions
contemplated by any of the Transactional Agreements; (iii) any circumstance,
change in or effect resulting solely from or arising out of, directly or
indirectly, actions taken by Conexant that are specifically required by any of
the Transactional Agreements to be taken (including any actions taken by
Conexant to reduce fixed costs associated with the Wafer Fabrication Operations
as contemplated by Section 4.1(b) of this Agreement); (iv) any

 

A-2

 

failure by Conexant or the Wafer Fabrication Operations to meet
internal projections of forecasts, or published revenue or earnings predictions
for any period; and (v) any adverse change, occurrence, effect, state of facts
or development solely attributable to the announcement or pendency of the
Transactions (including cancellations or delays in customer orders, termination
of employment by employees of the Wafer Fabrication Operations, disruption in
supplier, distributor or partner relationships or any nongovernmental
litigation).

 

“Consent” shall mean
any approval, consent, ratification, permission, waiver or authorization of any
Person (including any Governmental Authorization).

 

“Contract” shall mean
any written agreement, contract, instrument, note, guaranty, indemnity,
representation, warranty, deed, assignment, power of attorney, certificate,
purchase order, work order, insurance policy, benefit plan or commitment of any
nature.

 

“Contributed Assets”
shall mean all right, title, and interest of the Conexant Group Companies in
and to only the following assets and properties:

 

(i)            except
as set forth on Schedule 1.1(a)(i)(1), all equipment, machinery, computers,
tools, trade fixtures, improvements (including waste treatment and pollution
control systems, raised floors, walls, HEPA filters, exhaust ductwork, gas and
liquid lines, etc.) supplies, materials, furniture, and other tangible personal
property used or held for use in the conduct of the Wafer Fabrication
Operations and that are physically located within the blue shaded areas on the
floor plan building schematics for Buildings 503 and 505 located at 4311
Jamboree Road, Newport Beach, California attached hereto as Schedule
1.1(a)(i)(2) (the “Identified
WFO  Property”),
and all furniture, personal computers, calculators and other personal property
used by or held for use by the Transferred Employees (the “Transferred Employees’ Property”);

 

(vi)          all
equipment, machinery, computers, tools, fixtures, supplies, materials,
furniture, and other tangible property related to the Wafer Fabrication Support
Operations that are specifically listed on Schedule 1.1.(a)(ii) (together with
the Identified WFO Property and the Transferred Employees’ Property, the “Tangible Personal Property”);

 

(vii)         the Inventory owned by the Conexant Group
Companies as of the Closing Date (as defined in Section 1.7);

 

(viii)        the spare parts used in the Wafer
Fabrication Operations and owned by the Conexant Group Companies as of the
Closing Date;

 

(ix)          all
contracts listed on Schedule 1.1(a)(v), including any purchase orders related
to such contracts (the “Transferred Contracts”);

 

(x)           except
as set forth on Schedule 1.1(a)(vi)(1) and except for any patent and patent
applications not listed on Schedule 1.1(a)(vi)(1) that are primarily related to
the Product Technology (collectively, the “Excluded Patent Rights”), the patent and
patent applications set forth on Schedule 1.1(a)(vi)(2) and all other all
patents, patent applications and worldwide patent rights to all invention
disclosures (which invention disclosures have been submitted to Conexant in
writing as of the date of the Closing) primarily related to the Process

 

A-3

 

Technology
(collectively, the “Transferred
Patents”). Notwithstanding the foregoing, the Excluded Patent
Rights shall not include any patents, patent applications or disclosures set
forth on Schedule 1.1(a)(vi)(2);

 

(xi)          the
know-how, trade secrets and other intellectual property primarily related to
the Process Technology, including, without limitation, the know how, trade
secrets, and other intellectual property rights described on Schedule
1.1(a)(vii) (collectively, the “Transferred Know-How”);

 

(xii)         all Governmental Authorizations primarily
relating to the operation of the Wafer Fabrication Operations, to the extent
such Governmental Authorizations were transferred or are transferable by
Conexant to Newport Fab LLC pursuant to the Newport Fab Contribution Agreement
(the “Transferred
Permits”);

 

(xiii)       All claims, causes of action and rights of
set-off relating to any of the Contributed Assets other than claims, causes of
action and rights of set-off for infringement, misappropriation or violation of
the Transferred Intellectual Property that occurred prior to the Closing Date;

 

(xiv)        (a) all records and lists of Conexant Group
Companies primarily relating to Wafer Fabrication Operations and the assets
described in clauses (i) through (ix) of this definition of “Contributed Assets”,
including without limitation all records and lists pertaining to all external
customers and suppliers of and to the Wafer Fabrication Operations, (b) all
product, business, and marketing plans of Conexant Group Companies primarily
pertaining to the Wafer Fabricating Operations, (c) all books, ledgers, files,
reports, plans, drawings, and operating records related primarily to the Wafer
Fabrication Operations or the assets described in clauses (i) through (ix) of
this definition of “Contributed Assets”, and (d) to the extent permitted by
applicable Legal Requirements, personnel records for all Transferred Employees
(collectively, the “Books
and Records”); and

 

(xv)          all
trusts, trust assets, trust accounts, reserves, insurance policies or other
assets of the Conexant Systems, Inc. Retirement Plan for Hourly Employees (the “Retirement Plan”).

 

“Damages” shall mean
any loss, damage, cost injury, liability, claim, demand, settlement, judgment,
award, fine, penalty, Tax or expense of any nature, including without
limitation, reasonable fees and disbursements of counsel.

 

“Design
Kits” shall mean the semiconductor design kits
described on Exhibit J.

 

“Employment
Agreements” shall mean those employment agreements
to be entered into between the Company and the Key Employees.

 

“Encumbrance” shall
mean any lien, pledge, hypothecation, mortgage, security interest, encumbrance,
claim, lease, license, Order, imperfection of title, condition or restriction (including
any restriction on the transfer of any asset, any restriction on the receipt of
any income derived from any asset, any restriction on the use of any asset and
any restriction on the possession, exercise or transfer of any other attribute
of ownership of any asset).

 

A-4

 

“Entity” shall mean
any corporation (including any non-profit corporation), general partnership,
limited partnership, limited liability partnership, joint venture, estate,
trust, cooperative, foundation, society, political party, union, company
(including any limited liability company or joint stock company), firm or other
enterprise, association, organization or entity.

 

“Environmental Claim”
means any and all administrative, regulatory or judicial Proceeding, demands,
claims, claims, liens, Encumbrance, notices of non-compliance or violation,
investigations, consents, Orders or consent agreements relating in any way to
any Environmental Law or any permit, approval or license under any
Environmental Law (hereinafter “Claims”), including without limitation, (a) any
and all Claims by Governmental Bodies for enforcement, cleanup, remediation or
other actions or Damages pursuant to any Environmental Law, and (b) any and all
Claims by any Person seeking Damages, contribution, indemnification, cost
recovery, compensation or injunctive relief resulting from Hazardous Materials
or arising from alleged injury or threat of injury to health, safety or the environment.

 

“Environmental Condition”
shall mean (a) a condition relating to or arising or resulting from a failure
to comply with any applicable Environmental Law or any permit, approval or
license under any Environmental Law or (b) any and all conditions, including
soil, surface water and groundwater contamination, resulting from the handling
or use of any Hazardous Material or the disposal, release or discharge of a
Hazardous Material into the environment.

 

“Environmental Law”
means any Legal Requirement, now or hereafter in effect and as amended, and any
judicial, legislative or administrative interpretation thereof, including any
judicial, legislative or administrative Order relating to the environment; the
effect of Hazardous Materials on the environment or human safety or health;
emissions, discharges or releases of Hazardous Materials into the environment,
including without limitation into ambient air, surface water, groundwater or
land; or otherwise relating to the handling of Hazardous Materials or the
clean-up or other remediation of Hazardous Materials.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended.

 

“Excluded Liabilities”
shall mean any Liabilities of the Conexant Group Companies, whether arising out
of the Wafer Fabrication Operations or otherwise, including without limitation
any liabilities related to or arising from employment, employee benefits and
employee benefit plans, the ownership of the Contributed Assets, Taxes,
compliance with Legal Requirements, or any breaches or violations under the
Transferred Contracts, in each case, accruing, arising out of, or relating to
events and occurrences prior to the Closing.

 

“Governmental Authorization”
shall mean any permit, license, certificate, franchise, approval, consent,
certification, designation, registration, qualification or authorization issued
or granted by any Governmental Body.

 

“Governmental Body”
shall mean any: (a) nation, principality, state, commonwealth, province,
territory, county, municipality, district or other jurisdiction; (b) federal,
state, local, municipal or foreign government (including any agency,
department, bureau, division, court, or

 

A-5

 

other administrative or judicial body thereof); or (c) governmental or
quasi-governmental authority of any nature.

 

“Hazardous Material”
shall mean: (a) any petroleum, waste oil, crude oil, asbestos, urea
formaldehyde or polychlorinated biphenyl; (b) any waste, gas or other substance
or material that is explosive or radioactive; (c) any “hazardous substance,” “pollutant,”
“contaminant,” “hazardous waste,” “regulated substance,” “hazardous chemical,” “toxic
chemical” or “toxic substance” as designated, listed or defined (whether
expressly or by reference) in any statute, regulation or other Legal
Requirement (including the Comprehensive Environmental Response, Compensation
and Liability Act, 42 U.S.C. Section 9601 et seq. and any other so-called “superfund”
or “superlien” law, the Resource Conservation and Recovery Act, 42 U.S.C.
Section 6901 et seq., the Clean Water Act, 33 U.S.C. Section 1251 et seq., the
Clean Air Act, 42 U.S.C. Section 7401 et seq., and the Toxic Substances Control
Act, 15 U.S.C. Section 2601 et seq., and the respective regulations promulgated
thereunder, or any analogous federal, state or local laws and regulations); (d)
any other substance or material (regardless of physical form) or form of energy
that is subject to any Legal Requirement which regulates or establishes
standards of conduct in connection with, or which otherwise relates to, the
protection of human health, plant life, animal life, natural resources,
property or the enjoyment of life or property from the presence in the
environment of any solid, liquid, gas, odor, noise or form of energy; and (e)
any compound, mixture, solution, product or other substance or material that
contains any substance or material referred to in clause “(a),” “(b),” “(c),”
or “(d)” above.

 

“Indemnitee” shall
mean any of the Conexant Indemnitees, the Carlyle Indemnitees or the Company
Indemnitees.

 

“Independent Accounting Firm”
shall mean a nationally recognized public accounting firm that is not then
engaged by Conexant, Carlyle or the Company.

 

“Intellectual
Property” shall mean any and all worldwide (a) rights associated
with works of authorship, including copyrights, moral rights, and mask works;
(b) trademark and trade name rights and similar rights; (c) trade secret
rights; (d) patents and patent rights; (e) other proprietary rights in know-how,
inventions, ideas, algorithms, formula, methods, processes, techniques,
proprietary information, software, semiconductor devices, and other types of
technology; and (f) all registrations, applications, renewals, extensions,
combinations, divisions, or reissues of the foregoing.

 

“Inventory” shall mean those items of raw materials
and work-in-process used to manufacture semiconductor wafers at the Newport
Beach Fab Facility or otherwise related to the Wafer Fabrication Operations.

 

“IP Representation Breach” shall mean a breach of the representation
and warranties set forth in Section 2.5 hereof or the failure of the
representations and warranties set forth in Section 2.5 to be true and correct
as of the Closing Date.

 

“Specialtysemi Group
Companies” shall mean, collectively: (i) the
Company and (ii) at all times subsequent to the Closing, Newport Fab LLC.

 

A-6

 

“Knowledge”
shall mean the actual knowledge of Daniel Yannuzzi, Dennis O’Reilly, Sam
Talpalatsky, Paul Kempf, Jean Hu, Shu Li, Mark Becker, Steve Lin, Scott
Silcock, Theodore Chu, or Rick Bluth.

 

“Legal Requirement”
shall mean any federal, state, foreign, local or municipal law, statute,
legislation, constitution, ordinance, code, edict, rule, regulation, ruling,
directive, pronouncement, or interpretation issued, enacted, adopted, passed,
approved, promulgated, made, implemented or otherwise put into effect by or
under the authority of any Governmental Body.

 

“Liability” shall mean
any debt, obligation, duty or liability of any nature (including any unknown,
undisclosed, unmatured, unaccrued, unasserted, contingent, indirect,
conditional, implied, vicarious, derivative, joint, several or secondary
liability).

 

“Licensed Intellectual Property”
shall mean all Intellectual Property and all rights to any Intellectual
Property licensed to the Company pursuant to the License Agreements.

 

“Long Term Supply Agreement”
shall mean that certain Long Term Supply Agreement by and between the Company
and Conexant in the form attached hereto as Exhibit D.

 

“Membership
Interests” shall mean all membership and any other
ownership interests in Newport Fab LLC

 

“Newport Beach Fab
Facility” shall mean Conexant’s semiconductor
wafer manufacturing facility located in buildings 501, 503 and 505 at 4311
Jamboree Road, Newport Beach, California, together with any other real property
used in the Wafer Fabrication Operations.

 

“Newport Fab
Contribution” shall mean the consummation of the
contribution of the Contributed Assets to, and assumption of the Assumed
Liabilities by, Newport Fab LLC, as contemplated by the Newport Fab
Contribution Agreement.

 

“Newport Fab
Contribution Agreement” shall mean the Newport Fab
LLC Contribution Agreement dated as of the date hereof by and between Conexant
and Newport Fab LLC.

 

“Newport Fab LLC
Representations” shall mean the representations
and warranties set forth in Sections 2.20 through 2.25 hereof.

 

“Order”
shall mean any order, judgment, injunction, edict, decree, ruling,
pronouncement, determination, decision, opinion, verdict, sentence, subpoena,
writ or award issued, made, entered, rendered or otherwise put into effect by
or under the authority of any Governmental Body or any arbitrator or
arbitration panel.

 

“Permitted Encumbrance”
shall mean (i) any Encumbrance for Taxes not yet due and payable or which are
being contested in good faith through appropriate proceedings for which
adequate reserves have been established in accordance with GAAP on the
financial statements, (ii) any Encumbrance with respect to leased equipment
that exists under the express terms of any equipment lease included in the
Contributed Assets, and (iii) liens of landlords and liens of

 

A-7

 

carriers, warehousemen, mechanics and materialmen and other like liens
arising in the ordinary course of business for sums not yet due and payable or
which are being contested in good faith through appropriate proceedings for
which adequate reserves have been established in accordance with GAAP on the
financial statements.

 

“Person” shall mean
any individual, Entity or Governmental Body.

 

“Pre-Closing Tax
Period” shall mean all taxable periods ending
prior to the Closing Date and the portion ending on the Closing Date of any
taxable period that includes but does not end on the Closing Date.

 

“Proceeding” shall
mean any action, suit, litigation, arbitration, or investigation (including any
civil, criminal or administrative) commenced, brought, conducted or heard by or
before, or otherwise involving, any Governmental Body or any arbitrator or
arbitration panel.

 

“Process
Technology”
shall mean: (a) a non-device-specific step or sequence of steps carried out in
the Newport Beach Fab Facility used to fabricate wafers, including, without
limitation, technology relating to (i) the use, development or application of
new materials in building devices, such as conductors, dielectrics,
semiconductors, organics, or inorganics; (ii) the process of materials
deposition (either fixed or sacrificial) by CVD, PVD, APCVD, or ALCVD; (iii)
transformation of materials, including thermal treatment, chemical or plasma
exposure, and implantation; (iv) the patterning of materials using organic or
inorganic masking layers including multi-stacked materials and various chemistries
or plasmas; (v) the removal of materials, whether partially or completely, by
dry etch, plasma etch or wet etch or (vi) the cleaning of the wafer to remove
unwanted materials by wet cleans, dry cleans, and plasma cleans; (b) an
improvement or new design of the manufacturing tools used in the Newport Beach
Fab Facility to enhance throughput and yield; and (c) layout optimization
carried out in the Newport Beach Fab Facility to enhance yield and performance
by design for manufacturing rules, optical proximity correction, and other
photo techniques. Notwithstanding the foregoing, Process Technology shall not
include either Product Technology or technology specifically relating to the
GaAs processes used in Conexant’s Newbury Park fabrication facility.

 

“Product Technology”
shall mean (a) the design, structure, architecture and layout of semiconductor
devices or components thereof (such as, for example, “IP cores” (as such term
is commonly understood in the semiconductor industry) and individual circuits
or circuit elements); (b) software or firmware embedded in or used in
conjunction with a semiconductor device; (c) combinations of semiconductor
devices and the design or layout of such combinations; (d) semiconductor
packaging technology; (e) algorithms, functions, methods, and processes
performed by or embodied in semiconductor devices, components or combinations
thereof, or software or firmware embedded therein or used in conjunction
therewith; and (f) products designed, developed, implemented, marketed or sold
(in the past, present or future) by Conexant’s product line businesses,
including the broadband business, Mindspeed business, wireless business and
personal imaging business.

 

“Representatives”
shall mean officers, directors, employees, shareholders, agents, attorneys,
accountants, advisors and representatives.

 

A-8

 

“Subsidiary” shall
mean, in respect of any Person, any Entity of which the majority of each class
of Voting Stock (as defined in the Stockholders Agreement) or other voting
equity and the majority of each other class of Capital Stock (as defined in the
Stockholders Agreement) is owned by either (a) such Person or (b) another
Subsidiary of such Person.

 

“TSMC Representations”
means the representations and warranties set forth in Sections 2.5(l), 2.5(m),
and 2.5(n).

 

“Tax” shall mean any
tax (including any income tax, franchise tax, capital gains tax, estimated tax,
gross receipts tax, value-added tax, surtax, excise tax, ad valorem tax, transfer
tax, stamp tax, sales tax, use tax, property tax, business tax, occupation tax,
inventory tax, occupancy tax, withholding tax or payroll tax), levy,
assessment, tariff, impost, imposition, toll, duty (including any customs
duty), deficiency or fee, and any related charge or amount (including any fine,
penalty or interest), that is, has been or may in the future be
(a) imposed, assessed or collected by or under the authority of any
Governmental Body, or (b) payable pursuant to any tax-sharing agreement or
similar Contract.

 

“Tax Return”
shall mean any return, declaration, report, claim for refund, or information
return or statement relating to Taxes, including any schedule or attachment
thereto, and including any amendment thereof.

 

“Transactional Agreements”
shall mean: (a) the Agreement; (b) the Stockholder Agreement; (c) the License
Agreements; (d) the Employee Matters Agreement; (e) the Long Term Supply
Agreement; (f) the Real Property Lease Agreements; (g) the Assignment and
Assumption Agreement; (h) the Registration Rights Agreement; (i) the Transition
Services Agreement; (j) the IT Services Agreement, (k) the Conexant and Carlyle
Management Services Agreements, (l) the Management Rights Agreements, and (m)
the Warrant.

 

“Transactions” shall
mean (a) the execution and delivery of the respective Transactional Agreements,
and (b) all of the transactions contemplated by the respective Transactional
Agreements, including: (i) the contribution of the Membership Interests by
Conexant and the contribution of cash by Carlyle to the Company in accordance
with the Agreement; (ii) the guarantee of the Assumed Liabilities by the
Company pursuant to the Assignment and Assumption Agreement; (iii) the
performance by the Company, Conexant and Carlyle of their respective
obligations under the Transactional Agreements; and (iv) the exercise by the
Company, Conexant and Carlyle of their respective rights under the
Transactional Agreements.

 

“Transferred
Employees” shall mean those employees of the
Conexant Group Companies who become employees of the Specialtysemi Group
Companies after the Closing.

 

“Transferred
Intellectual Property” shall mean collectively the
Transferred Patents and the Transferred Know-How.

 

A-9

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  1.

  	
  CONTRIBUTION
  OF ASSETS; RELATED TRANSACTIONS

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Contributions
  by Conexant

  	
  2

  
	
   

  	
  1.2

  	
  Cash
  Contribution by Carlyle

  	
  2

  
	
   

  	
  1.3

  	
  Consideration
  for Membership Interests and Cash

  	
  2

  
	
   

  	
  1.4

  	
  Earn-Out
  Payments

  	
  3

  
	
   

  	
  1.5

  	
  Royalties

  	
  5

  
	
   

  	
  1.6

  	
  Sales
  Taxes

  	
  6

  
	
   

  	
  1.7

  	
  Closing

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  REPRESENTATIONS
  AND WARRANTIES OF CONEXANT

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Due
  Organization; Authority; Binding Nature of Agreements

  	
  8

  
	
   

  	
  2.2

  	
  Tangible
  Assets

  	
  8

  
	
   

  	
  2.3

  	
  Inventory

  	
  9

  
	
   

  	
  2.4

  	
  Contracts

  	
  9

  
	
   

  	
  2.5

  	
  Intellectual
  Property

  	
  10

  
	
   

  	
  2.6

  	
  Employee
  Matters

  	
  13

  
	
   

  	
  2.7

  	
  Compliance
  with Legal Requirements

  	
  14

  
	
   

  	
  2.8

  	
  Governmental
  Authorizations

  	
  15

  
	
   

  	
  2.9

  	
  Environmental
  Matters

  	
  16

  
	
   

  	
  2.10

  	
  Proceedings;
  Orders

  	
  16

  
	
   

  	
  2.11

  	
  Non-Contravention;
  Consents

  	
  17

  
	
   

  	
  2.12

  	
  Absence
  of Certain Changes or Events

  	
  18

  
	
   

  	
  2.13

  	
  Financial
  Information

  	
  18

  
	
   

  	
  2.14

  	
  Suppliers

  	
  18

  
	
   

  	
  2.15

  	
  Taxes

  	
  18

  
	
   

  	
  2.16

  	
  No
  Brokers

  	
  19

  
	
   

  	
  2.17

  	
  Real
  Property

  	
  20

  
	
   

  	
  2.18

  	
  Affiliated
  Transactions

  	
  20

  
	
   

  	
  2.19

  	
  Sufficiency
  of Assets

  	
  20

  
	
   

  	
  2.20

  	
  Newport
  Fab Contribution Agreement

  	
  20

  
	
   

  	
  2.21

  	
  Liabilities

  	
  20

  

 

i

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
   

  	
  2.22

  	
  Consummation
  of the Newport Fab Contribution

  	
  20

  
	
   

  	
  2.23

  	
  Membership
  Interests

  	
  20

  
	
   

  	
  2.24

  	
  Newport
  Fab LLC

  	
  20

  
	
   

  	
  2.25

  	
  The
  Warrant

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  REPRESENTATIONS
  AND WARRANTIES OF CARLYLE

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Due
  Organization; Authority; Binding Nature of Agreements

  	
  21

  
	
   

  	
  3.2

  	
  Non-Contravention;
  Consents

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  COVENANTS
  OF THE PARTIES

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Conduct
  of Business

  	
  22

  
	
   

  	
  4.2

  	
  Access
  to Information

  	
  24

  
	
   

  	
  4.3

  	
  Filings
  and Consents

  	
  25

  
	
   

  	
  4.4

  	
  No
  Solicitation

  	
  25

  
	
   

  	
  4.5

  	
  Notification

  	
  25

  
	
   

  	
  4.6

  	
  Bulk
  Transfer Laws

  	
  26

  
	
   

  	
  4.7

  	
  Publicity

  	
  26

  
	
   

  	
  4.8

  	
  Reasonable
  Best Efforts

  	
  26

  
	
   

  	
  4.9

  	
  Environmental
  Matters

  	
  26

  
	
   

  	
  4.10

  	
  Tax
  Matters

  	
  27

  
	
   

  	
  4.11

  	
  Update
  of Schedules

  	
  28

  
	
   

  	
  4.12

  	
  GE
  Capital Lease Reimbursement

  	
  29

  
	
   

  	
  4.13

  	
  Newport
  Fab Contribution Agreement

  	
  29

  
	
   

  	
  4.14

  	
  TSMC
  License Agreement

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  CONDITIONS
  PRECEDENT TO CONEXANT’S OBLIGATION TO CLOSE

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Accuracy
  of Representations

  	
  29

  
	
   

  	
  5.2

  	
  Performance
  of Obligations

  	
  29

  
	
   

  	
  5.3

  	
  Governmental
  Approvals

  	
  30

  
	
   

  	
  5.4

  	
  Governmental
  Proceedings

  	
  30

  
	
   

  	
  5.5

  	
  Receipt of
  Consideration

  	
  30

  
	
   

  	
  5.6

  	
  Certificates

  	
  30

  
	
   

  	
  5.7

  	
  Agreements
  to be Delivered

  	
  30

  

 

ii

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
   

  	
  5.8

  	
  Warrant

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  CONDITIONS
  PRECEDENT TO CARLYLE’S OBLIGATION TO CLOSE

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Accuracy
  of Representations

  	
  30

  
	
   

  	
  6.2

  	
  Performance
  of Obligations

  	
  31

  
	
   

  	
  6.3

  	
  Governmental
  Proceedings

  	
  31

  
	
   

  	
  6.4

  	
  Consents
  and Replacement Contracts

  	
  31

  
	
   

  	
  6.5

  	
  Governmental
  Approvals

  	
  31

  
	
   

  	
  6.6

  	
  Material
  Adverse Effect

  	
  31

  
	
   

  	
  6.7

  	
  Inventory

  	
  31

  
	
   

  	
  6.8

  	
  Employment

  	
  32

  
	
   

  	
  6.9

  	
  Company
  Bank Account

  	
  32

  
	
   

  	
  6.10

  	
  Certificates

  	
  32

  
	
   

  	
  6.11

  	
  Agreements
  to be Delivered

  	
  32

  
	
   

  	
  6.12

  	
  Conveyancing
  Documents

  	
  32

  
	
   

  	
  6.13

  	
  Warrant

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  TERMINATION

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Termination
  Events

  	
  32

  
	
   

  	
  7.2

  	
  Termination
  Procedures

  	
  33

  
	
   

  	
  7.3

  	
  Effect
  of Termination

  	
  33

  
	
   

  	
  7.4

  	
  Nonexclusivity
  of Termination Rights

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  INDEMNIFICATION,
  ETC.

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Survival
  of Representations and Warranties

  	
  33

  
	
   

  	
  8.2

  	
  Indemnification
  by Conexant

  	
  34

  
	
   

  	
  8.3

  	
  Indemnification
  by the Company

  	
  36

  
	
   

  	
  8.4

  	
  Indemnification
  by Carlyle

  	
  36

  
	
   

  	
  8.5

  	
  Setoff

  	
  37

  
	
   

  	
  8.6

  	
  Defense
  of Third Party Claims

  	
  37

  
	
   

  	
  8.7

  	
  Sole and
  Exclusive Remedy

  	
  38

  
	
   

  	
  8.8

  	
  Exercise
  of Remedies by Indemnitees other than Parties to this Agreement

  	
  38

  

 

iii

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
   

  	
  8.9

  	
  Additional
  Procedures Relating to Environmental Claims

  	
  38

  
	
   

  	
  8.10

  	
  Additional
  Indemnification by Conexant

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  COVENANTS
  OF THE PARTIES AFTER THE CLOSING

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Access
  to Information

  	
  40

  
	
   

  	
  9.2

  	
  Election
  Out of Installment Method

  	
  40

  
	
   

  	
  9.3

  	
  Certain
  Agreements Concerning the Specified Excluded Assets

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  MISCELLANEOUS
  PROVISIONS

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Publicity

  	
  41

  
	
   

  	
  10.2

  	
  Further
  Assurances

  	
  41

  
	
   

  	
  10.3

  	
  Fees and
  Expenses

  	
  41

  
	
   

  	
  10.4

  	
  Attorneys’
  Fees

  	
  42

  
	
   

  	
  10.5

  	
  Notices

  	
  42

  
	
   

  	
  10.6

  	
  Time of
  the Essence

  	
  43

  
	
   

  	
  10.7

  	
  Headings

  	
  43

  
	
   

  	
  10.8

  	
  Governing
  Law

  	
  43

  
	
   

  	
  10.9

  	
  Successors
  and Assigns; Parties in Interest

  	
  43

  
	
   

  	
  10.10

  	
  Remedies
  Cumulative; Specific Performance

  	
  44

  
	
   

  	
  10.11

  	
  Waiver

  	
  44

  
	
   

  	
  10.12

  	
  Amendments

  	
  44

  
	
   

  	
  10.13

  	
  Severability

  	
  44

  
	
   

  	
  10.14

  	
  Counterparts

  	
  44

  
	
   

  	
  10.15

  	
  Entire
  Agreement

  	
  44

  
	
   

  	
  10.16

  	
  Construction

  	
  45

  
	
   

  	
  10.17

  	
  No Implied
  Licenses

  	
  45

  
	
   

  	
  10.18

  	
  Dispute
  Resolution; Arbitration

  	
  45

  

 

iv

 

LIST OF EXHIBITS

 

	
  Exhibit A

  	
  Certain Definitions

  	
   

  
	
  Exhibit B

  	
  Stockholder Agreement

  	
   

  
	
  Exhibit C

  	
  Registration Rights Agreement

  	
   

  
	
  Exhibit D

  	
  Long-Term Supply Agreement

  	
   

  
	
  Exhibit E

  	
  Employee Matters Agreement

  	
   

  
	
  Exhibit F

  	
  Carlyle Management Services Agreement

  	
   

  
	
  Exhibit G

  	
  Carlyle Management Rights Agreements

  	
   

  
	
  Exhibit H

  	
  Conexant Management Services Agreements

  	
   

  
	
  Exhibit I

  	
  Conexant Management Rights Agreement

  	
   

  
	
  Exhibit J

  	
  Design Kits

  	
   

  

 

 

DISCLOSURE SCHEDULE

to

CONTRIBUTION AGREEMENT

Dated as of February 23, 2002

by and among

SPECIALTYSEMI, INC., CONEXANT SYSTEMS, INC.,
and CARLYLE CAPITAL

INVESTORS, L.L.C.

 

This
disclosure schedule (“Disclosure
Schedule”) is being furnished by Conexant Systems, Inc. (“Conexant”) to
Specialtysemi, Inc. (the “Company”)
and Carlyle Capital Investors L.L.C. (“Carlyle”) in connection with the execution
and delivery of that certain Contribution Agreement dated as of February 23,
2002 by and among Conexant, the Company and Carlyle (the “Agreement”). Unless
the context otherwise requires, all capitalized terms used in this Disclosure
Schedule shall have the respective meanings assigned to them in the Agreement.

 

No reference
to or disclosure of any item or other matter in this Disclosure Schedule shall
be construed as an admission or indication that such item or other matter is
material or that such item or other matter is required to be referred to or
disclosed in this Disclosure Schedule. No disclosure in this Disclosure
Schedule relating to any possible breach or violation of any agreement, law or
regulation shall be construed as an admission or indication that any such
breach or violation exists or has actually occurred.

 

This Disclosure
Schedule and the information and disclosures contained in this Disclosure
Schedule are intended only to qualify and limit the representations, warranties
and covenants of Conexant contained in the Agreement and shall not be deemed to
expand in any way the scope or effect of any such representation, warranties or
covenants.

 

The bold-faced
headings contained in this Disclosure Schedule are included for convenience
only, and are not intended to limit the effect of the disclosures contained in
this Disclosure Schedule or to expand the scope of the information required to
be disclosed in this Disclosure Schedule.

 

2

 

SCHEDULE
1.1(a)(i)(1)

 

EXCLUDED
ASSETS

 

See attached spreadsheet titled Excluded
Asset Summary.

 

 

Schedule 1.1(a)(i)(1)

Newport Beach Wafer Fab

Excluded Detailed Asset Listing (Probe Floor Only)

 

	
  Co

  	
   

  	
  CC

  	
   

  	
  Cost Cent

  	
   

  	
  Hyperion C

  	
   

  	
  Asset No.

  	
   

  	
  Location

  	
   

  	
  Class

  	
   

  	
  Class Des.

  	
   

  	
  Asset Description

  	
   

  	
  Cap Date

  	
   

  	
  Curr.net bk.val

  
	
  [...***...]

  

 

4

 

SCHEDULE
1.1(a)(i)(2)

 

MAP

 

See attached
map.

 

5

 

[Map]

 

 

SCHEDULE
1.1(a)(ii)

 

TANGIBLE
PERSONAL PROPERTY

 

See attached
spreadsheet titled Tangible Personal Property.

 

 

Newport Beach Wafer Fab

Assets Located Outside of El Capitan (503) and the Pad (505)

 

	
  Co.

  	
   

  	
  CC

  	
   

  	
  Asset No.

  	
   

  	
  Location

  	
   

  	
  Class

  	
   

  	
  Class
 Description

  	
   

  	
  Asset

  Description

  	
   

  	
  Cap. Date

  
	
  [...***... 4 pages omitted]

  

 

 

 

SCHEDULE
1.1(a)(v)

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Surplus Material Sales Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Consignor”)

  	
   

  	
  11/27/01 (Effective Date)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bulk Gas Purchase Agreement (P.O. No.
  C2CJ-737000) (as amended)

   

  Purchase Order No.

  NB 18420404

   

  Purchase Order No.

  NB18420232

  	
   

  	
  [...***...]

   

  Rockwell International Corporation
  (“Buyer”)

  	
   

  	
  8/27/91 (Effective 1/24/92)

   

  Letter Am. No. 1 10/19/98

   

  P.O. #NB 18420404 10/31/00

   

  P.O. #NB 18420232 10/31/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement (as amended)

   

  Purchase Order No. NB363182, Change Order
  #3

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  11/5/98

   

  Letter Am. 2/4/99 Purchase Order 10/10/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nitrogen/Oxygen Supply Agreement No.
  BN98140030 (as amended)

   

  Purchase Order #NB98140030

   

  Purchase Order #NB98140030, Change Order #
  1

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  12/01/98

   

  Am. No. 19/17/00

   

  P.O. #NB 98140030 12/1/98

   

  P.O. #NB 98140030, Change Order # 1:
  9/17/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Specialty Gas Supply Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  1/15/01

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Bailment Agreement

  No. E200400016

   

  (Attachment 3 to P.O.

  NB08330111)

   

  Purchase Order No.

  NB08330111

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Bailee”)

  	
   

  	
  3/2/00

   

  Purchase Order 2/29/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  License to Purchase and Use the
  Electraclean Cleaning Solution

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  7/27/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Commercial Terms Agreement

  No. C203124

   

  Purchase Order #NB28650030

   

  Purchase Order #NB28600001

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  11/1/01 (Effective Date)

   

  P.O. #NB 28650030 10/16/01

   

  P.O. #NB 28600001 10/6/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Parts Management Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  5/24/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order No.

  NB 18240007

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  Change Order #1 7/13/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conexant/[...***...]

  Master Business Agreement Revision A.1

  	
   

  	
  [...***...]

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  10/17/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Service and Maintenance Agreement

   

  Purchase Order #

  NB 18600047

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  10/10/01

  

  Purchase Order 10/02/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB98240013

  	
   

  	
  [...***...] Conexant Systems, Inc.

  	
   

  	
  12/8/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order #

  NB98240013,

  Change Order #6

  	
   

  	
  [...***...] Conexant Systems, Inc.

  	
   

  	
  10/10/01

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Purchase Order #NB28600006

  

  Quotation #3715E

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  10/10/01

   

  Quotation 9/26/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] and Conexant Systems, Inc.
  Maintenance Agreement

  

  Purchase Order # NB 18600046

  	
   

  	
  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  10/10/01

   

  Purchase Order 9/28/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement

  

  Purchase Order #

  NB07140159,

  Change Order # 1

  	
   

  	
  [...***...]

   

  Conexant Systems (“Buyer”)

  	
   

  	
  10/1/99

   

  Purchase Order 12/16/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement

  

  Service Contract Agreement (Quotation No. 112098-TRK ROCKSERCON)

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems

  (Conexant Systems, Inc.) (“Buyer”)

  	
   

  	
  1/11/99

  

  Service Contract 11/20/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order #

  NB28600050

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Customer”)

  	
   

  	
  10/02/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems (“Buyer”)

  	
   

  	
  12/9/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB98000503

   

  Support Services Agreement No. NB98000503

  (Attach 1 to P.O. #NB98000503)

   

  Firm Fixed-Price Commercial Terms and
  Conditions (Attach 2 to

  P.O. #NB9800503)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  7/8/99

   

  Support Services Agreement 7/1/99

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Purchase Order

  NB08240014,

  Change Order #2

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  5/30/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Master Lease Agreement (as amended)

  Interim Equipment Schedule No. 1

  Electronic Test Equipment

  Schedule No. 1

  Amendment to Schedule No. 1

   

  Certificate of Acceptance

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Lessee”)

  	
   

  	
  3/3/00

  

  Interim Equipment Schedule 7/25/00

  

  Electronic Test & Equipment Schedule 7/25/00

  

  Am. to Schedule # 1 12/19/00

  

  Acceptance Certificate 12/19/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Household Goods Agreement for United States
  and Canada No. 8209-94 (as amended)

  	
   

  	
  [...***...]

   

  Rockwell International Corporation
  (“Shipper”)

  	
   

  	
  2/26/94

  

  Am. No. 2 2/26/96

  

  Am. No. 3 3/15/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Software License Agreement

  	
   

  	
  [...***...]

  	
   

  	
  Not executed

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB98240015, Change

  Order # 1

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  11/7/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB98320081

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  6/22/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB28660105

  Firm Fixed-Price Commercial Terms and
  Conditions (Attach. 1)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  12/5/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order No.

  NBO8500470

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  5/25/00

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Standard Non-Disclosure Agreement

  

  Confidential Information Transmittal Record

  

  Support Services Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

   

   

  [...***...]

  	
   

  	
  12/14/99

  

  12/14/99

  

  9/20/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement No.

  NB98240087

  

  Purchase Order

  #NB98240087

   

  Purchase Order #NB98240087, Change Order #6

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  4/6/99

  

  P.O. #NB

  98240087

  4/6/99

  

  P.O. #NB

  98240087, Change

  Order #6: 5/7/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB28600019

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  10/24/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB8660073

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  11/12/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quotation # 9496- RI regarding renewal of [...***...]
  Software Support Contract

  	
   

  	
  [...***...]

   

  Conexant Systems

  	
   

  	
  9/28/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Field Service Maintenance Support Agreement
  (“FSMS Agreement’)

   

  Framework Order No. NBF9800013 Quotation #
  CS-3629

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  9/6/01

  

  Framework Order 9/28/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB 18600048

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  10/2/01

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Memorandum of. Understanding No. 2001-01927

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  9/6/01

   

  Framework Order 9/28/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB18200399

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  2/19/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Process Development and Evaluation
  Agreement No. 2001-00809

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  1/31/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order #NB 18600045, Change Order #
  1

  Service Quotation #SC-1700, Rev. B

  Service Contract Service Quotation

  #SC-1699

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  10/09/01

  

  Quotation #SC-1700, Rev. B Service Contract 9/14/01

  

  Quotation #SC-1699 9/14/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  NB98240021, Change

  Order # 5

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  6/29/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  N1308330052, Change

  Order #1

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  12/6/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equipment Lease Agreement

  

  Purchase Order #NB28600049

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Lessee”)

  	
   

  	
  9/28/01

  

  Purchase Order 10/2/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Strategic Technology Alliance and Exclusive
  Supply Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  8/22/01

  (Effective Date)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Asset Purchase Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  8/7/01

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Conexant Laundry Service

  Agreement

  (Revision 1/24/00)

  

  Purchase Order

  #NB07140350

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  1/24/00

  

  Purchase Order

  3/31/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wafer Qualification and Purchase Agreement
  No. 2001-01182

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  6/5/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wafer Purchase Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  8/24/01

  (Effective Date)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  License Agreement

  (Attach No. I to P.O.

  NB98060016)

  

  Purchase Order No.

  

  NB98060016

  	
   

  	
  [...***...]

  

  Rockwell Semiconductor Systems,

  Inc. (“Rockwell”)

  

  [...***...]

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  10/30/98

  

  Purchase Order 10/20/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Funds-In Agreement No. SNL-00FI-0170120 (as
  amended)

  

  Purchase Order

  #NB08320092

  	
   

  	
  [...***...]

   

  Conexant, Inc. (“Sponsor”)

  	
   

  	
  6/2/00

  

  Am. No. 1

  12/19/00

  

  Am. No.

  2 3/30/01

  

  Purchase Order 5/31/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conexant Systems, Inc.

  [...***...]

  

  Rental Contract No.

  NP08140087 (Attach

  No. 1 to Contract No.

  NB 18392083)

  

  [...***...] Letter Proposal

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  5/1/01

  

  Letter

  11/12/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Amended and Restated

  [...***...]

  Participation Agreement

  	
   

  	
  [...***...]

  Conexant Systems, Inc. (“Member”)

  	
   

  	
  3/25/99

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Joint Development and License Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  6/27/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Joint Development and License Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  1/10/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  System Integration Services Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  9/17/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Standard Non-Disclosure

  Agreement No. 00SNDA0111

  

  (Exhibit H to Sale and

  Purchase Agreement

  dated 9/1/01)

  

  Confidential Information Transmittal

  Record (“CITR”)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  11/1/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sale and Purchase Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  9/1/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB98240023,

  Change Order #10

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  5/22/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Conexant

  Consignment Inventory

  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems

  	
   

  	
  8/28/00

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Conexant Systems

  Purchasing Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  Revised 11/1/01

  

  Amended

  12/4/01

  

  P.O.s #NB 18420315,

  316, 321 10/18/00

  

  P.O.s #NB 18420033,

  314, 317, 318, 319,

  142, 143, 144, 322

  10/17/00

   

  
	
  P.O.

  P.O.

  P.O.

  P.O.

  P.O.

  P.O.

  P.O.

  P.O.

  P.O.

  P.O.

  P.O.

  	
  #NB18420315

  #NB1842031

  #NB18420321

  #NB18420033

  #NB18420314

  #NB18420317

  #NB18420318

  #NB18420319

  #NB18420142

  #NB18420143

  #NB18420144

  
	
  P.O.

  	
  #NB 18420322

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Letter and Rate Sheet

  	
   

  	
  [...***...]

  	
   

  	
  Undated

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  Software Site License and

  Support Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Licensee”)

  	
   

  	
  9/29/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  End User Software License

  Agreement

  	
   

  	
  [...***...]

  	
   

  	
  Unexecuted; undated

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Products Supply and Services

  Agreement

  	
   

  	
  [...***...]

  

  Rockwell Semiconductor Systems

  	
   

  	
  9/13/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  Undated

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Purchase Order

  #NB18190460

  

  Purchase Order

  #NB08260733

  

  Purchase Order

  #NB18560512

  

  Purchase Agreement

  

  Support Services

  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  6/26/01

  

  3/28/00

  

  3/6/01

  

  5/18/01

  

  3/8/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Member Confidential

  Information Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  5/21/01

  

 

 

SCHEDULE 1.1(a)(vi)(1)

 

 

Schedule 1.1(a)(vi)(1)

 

Mindspeed Exclusions

 

	
  Docket ID

  	
   

  	
  Short Title

  	
   

  	
  Grant No.

  	
   

  	
  Grant Date

  
	
  [...***... 14 pages omitted]

  

 

 

Schedule 1.1(a)(vi)(1)

CMOS Imager Exclusions

 

CMOS Imager Patents, Applications and
Disclosures

 

	
  Docket
  No.

  	
   

  	
  Patent No./Serial No.

  	
   

  	
  Filing Issue Date

  	
   

  	
  Title

  
	
  [...***... 9 pages omitted]

  

 

 

Schedule 1.1(a)(vi)(1)

LeaderCo Packing Exclusions

 

LeaderCo Packing Patents, Applications and
Disclosures

 

	
  Docket No.

  	
   

  	
  PN/SN

  	
   

  	
  Title

  
	
  [...***... 3 pages omitted]

  

 

 

Schedule 1.1(a)(vi)(1)

LeaderCo Wireless Exclusions

 

LEADERCO PATENTS, APPLICATIONS AND
DISCLOSURES

 

	
  Case Number

  	
   

  	
  App Title

  	
   

  	
  Status

  	
   

  	
  App. Number

  	
   

  	
  Pat Number

  	
   

  	
  Issue Date

  
	
  [...***... 25 pages omitted]

  

 

 

SCHEDULE 1.1(a)(vi)(2)

 

PATENTS, APPLICATIONS AND DISCLOSURES BEING
TRANSFERRED TO COMPANY

 

 

Schedule 1.1(a)(vi)(2)

 

Patents, Applications and Disclosures Being
Transferred to Company

 

	
  Docket
  Number

  	
   

  	
  Serial #/

  Patent #

  	
   

  	
  Title

  	
   

  	
  Inventory

  	
   

  	
  Filing Date

  	
   

  	
  Status

  
	
  00CXT001T

  	
   

  	
   

  	
   

  	
  Ultra-Low-K Materials and Fabrication for High Performance Ics

  	
   

  	
  Bin Zhao; Maureen R. Brongo; QZ Liu

  	
   

  	
   

  	
   

  	
  Unfiled – Assigned 11/22/99

  
	
  00CXT0058T

  	
   

  	
   

  	
   

  	
  Vapor Phase Doping as a Technique to Form Extrinsic Base and Base
  Contact

  	
   

  	
  Pankaj N. Joshl

  	
   

  	
   

  	
   

  	
  Innovation

  
	
  00CXT0088T/

  	
   

  	
  4698417

  	
   

  	
  Production of Oxy-Metallo-Organic Polymer

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Granted

  
	
  00CXT0222T

  	
   

  	
   

  	
   

  	
  Circuit/Layout Technique for Realizing a High Gain, Low Noise Gate
  Controlled Lateral PNP Bipolar Transistor in a Standard CMOS Process

  	
   

  	
  Chih-Chelh King; Matloubian, Mishel; Sandeep D’Souza; Surya S
  Bhattacharya

  	
   

  	
   

  	
   

  	
  Unfiled – On Hold 10/00.Assigned 4/6/00

  
	
  00CXT0253T

  	
   

  	
   

  	
   

  	
  Pad Aluminum Metal Fuses in Dual Damascene Copper Flow

  	
   

  	
  Arjun KarRoy

  	
   

  	
   

  	
   

  	
  Unfiled – On Hold 10/00.Assigned 5/31/00

  
	
  00CXT0269TRCE

  	
   

  	
  09/002,326

  	
   

  	
  Damascene Metalization Process and Structure

  	
   

  	
  Bin Zhao

  	
   

  	
  1/2/1998

  	
   

  	
  Licensed to Sematech

  
	
  00CXT0271T

  	
   

  	
  6309922

  	
   

  	
  Method for Fabrication of On-Chip Inductors and Related Structure

  	
   

  	
  Bin Zhao; David Howard; QZ Liu

  	
   

  	
  7/28/2000

  	
   

  	
  Issued to Sematech

  
	
  00CXT0271T-DIV

  	
   

  	
  09/754,806

  	
   

  	
  Method for Fabrication of On-Chip Inductors and Related Structure

  	
   

  	
  Bin Zhao; David Howard; QZ Liu

  	
   

  	
  1/2/2001

  	
   

  	
  Divisional Pending

  
	
  00CXT0280T

  	
   

  	
   

  	
   

  	
  Deep Trench Isolation Integration Scheme Using Highly Anisotropic and
  Selective Pad TEOS Hardmask Dry Removal

  	
   

  	
  Kevin Q. YinKlaus Schuegraf

  	
   

  	
   

  	
   

  	
  Approved to file 8/1/00

  
	
  00CXT0313T

  	
   

  	
  09/668,790

  	
   

  	
  Method for Increasing Inductance of On-Chip Inductors and Related
  Structure

  	
   

  	
  David Howard; QZ Liu

  	
   

  	
  9/22/2000

  	
   

  	
  Pending

  
	
  00CXT0314T

  	
   

  	
  09/649,442

  	
   

  	
  Method for Fabrication of High Inductance Inductors and Related
  Structure

  	
   

  	
  David Howard; QZ Liu

  	
   

  	
  8/25/2000

  	
   

  	
  Pending – PCT Pending

  
	
  00CXT0324T

  	
   

  	
   

  	
   

  	
  An Improved Fabrication Method for Dual Damascene Interconnects

  	
   

  	
  Bin Zhao

  	
   

  	
   

  	
   

  	
  Unfiled – On Hold 10/00.Assigned 8/25/00

  
	
  00CXT0344T

  	
   

  	
   

  	
   

  	
  Highly Conductive Interconnects and Fabrication

  	
   

  	
  Bin Zhao; Maureen R. Brongo; QZ Liu

  	
   

  	
   

  	
   

  	
  Unfiled – On Hold 10/00.Assigned 8/21/00

  
	
  00CXT0345T

  	
   

  	
  09/658,483

  	
   

  	
  Method for Fabricating On-chip Inductors and Relates structure

  	
   

  	
  Bin Zhao; David Howard; QZ Lin

  	
   

  	
  9/8/2000

  	
   

  	
  Pending

  
	
  00CXT0564T

  	
   

  	
  09/653,982

  	
   

  	
  Method for Reducing Base Resistance and Related Structure

  	
   

  	
  Marco Racanelli

  	
   

  	
  9/1/2000

  	
   

  	
  Pending

  

 

1

 

	
  00CXT0565T

  	
   

  	
  09/721,551

  	
   

  	
  Method for controlling Critical Dimension in a Polycrystalline
  Silicon Emitter and Related Structure

  	
   

  	
  Klaus Schnegraf

  	
   

  	
  11/17/2000

  	
   

  	
  Pending

  
	
  00CXT0568T

  	
   

  	
  09/677,707

  	
   

  	
  Structure for Reduction of Base and Emitter Resistance and Related
  Method

  	
   

  	
  Marco Racanelli

  	
   

  	
  9/30/2000

  	
   

  	
  Pending

  
	
  00CXT0571T

  	
   

  	
   

  	
   

  	
  Doped Poly With Buffer Layer for Emitter Poly Application

  	
   

  	
  Klaus Schuegraf

  	
   

  	
   

  	
   

  	
  Approved to file 8/1/00

  
	
  00CXT0572T

  	
   

  	
  09/677,708

  	
   

  	
  Method for Reducing Contamination Prior to Epitaxial Growth and
  Related Structure

  	
   

  	
  David L. Chapek; Klaus Schuegraf

  	
   

  	
  9/30/2000

  	
   

  	
  Pending

  
	
  00CXT0576T

  	
   

  	
  09/833,953

  	
   

  	
  Low Cost High Value Resistor Formation

  	
   

  	
  Marco Racanelli

  	
   

  	
  4/11/2001

  	
   

  	
  Pending

  
	
  00CXT0577T

  	
   

  	
  09/667,274

  	
   

  	
  Method for Independence Control of Poly in a non-selective SiGe
  Epitaxial Process

  	
   

  	
  Greg D U’Rea

  	
   

  	
  9/22/2000

  	
   

  	
  Pending/Allowed

  
	
  00CXT0578T

  	
   

  	
  09/667,660

  	
   

  	
  Method for Elimination Contaminants Prior to Epitaxy and Related
  Structure

  	
   

  	
  Greg D U’Rea

  	
   

  	
  9/22/2000

  	
   

  	
  Pending

  
	
  00CXT0580T

  	
   

  	
  09/721,128

  	
   

  	
  Method for Fabricating Interfacial Oxide in a Transistor and Related
  Structure

  	
   

  	
  Klaus Schuegraf; Pankaj N Joshi

  	
   

  	
  11/17/2000

  	
   

  	
  Pending

  
	
  00CXT0587T

  	
   

  	
  09/811,321

  	
   

  	
  High-Performance, High-Breakdown, Super Narrow Emitter Finger SiGe

  	
   

  	
  Klaus Schuegraf; Paul Kempf; Peter Asbeck; Peter J Zampardi

  	
   

  	
  3/17/2001

  	
   

  	
  Pending

  
	
  00CXT0597T

  	
   

  	
  09/851,228

  	
   

  	
  Method for Shaping CMOS Region to Avoid Formation of Polysilicon
  Stringers

  	
   

  	
  Marco Racanelli; Klaus Schuegraf

  	
   

  	
  5/8/2001

  	
   

  	
  Pending

  
	
  00CXT0598T

  	
   

  	
  09/852,183

  	
   

  	
  Method To Improve Npn Performance by Reducing Parasitic Base-Emitter
  Capacitance

  	
   

  	
  Klaus Schuegraf

  	
   

  	
  5/9/2001

  	
   

  	
  Pending

  
	
  00CXT0599T

  	
   

  	
  09/850,028

  	
   

  	
  Method to Improve Cbe by patterning CMOS Spacer Around Npn Device

  	
   

  	
  Klaus Schuegraf

  	
   

  	
  5/7/2001

  	
   

  	
  Pending

  
	
  00CXT0600T

  	
   

  	
  09/853,735

  	
   

  	
  Method to Form Lateral PnP Device with SiGe Epi Process

  	
   

  	
  Klaus Schuegraf

  	
   

  	
  5/10/2001

  	
   

  	
  Pending

  
	
  00CXT0675T

  	
   

  	
   

  	
   

  	
  Damascene Trench Capacitor for Mixed-Signal/RF IC Applications

  	
   

  	
  Bin Zhao

  	
   

  	
   

  	
   

  	
  Unfiled – Assigned 1/31/01

  
	
  00CXT0678T

  	
   

  	
   

  	
   

  	
  Embedded Damascene Inductors

  	
   

  	
  Bin Zhao; Maureen R Brongo

  	
   

  	
   

  	
   

  	
  Approved to file 9/14/00;

  
	
  00CXT0688T

  	
   

  	
  09/721,244

  	
   

  	
  Method for Fabricating Self-Aligned Emitter in a Bipolar Transistor

  	
   

  	
  Marco Racanelli

  	
   

  	
  11/22/2000

  	
   

  	
  Pending

  
	
  00CXT0694T

  	
   

  	
   

  	
   

  	
  Fabrication of High Density MIM Capacitor for Mixed-Signal/RF
  Circuits

  	
   

  	
  Bin Zhao; Maureen R Brongo

  	
   

  	
   

  	
   

  	
  Unfiled – Assigned 1/31/01

  

 

2

 

	
  00CXT0730T

  	
   

  	
   

  	
   

  	
  Method of forming inductors with Stacked Metal and Continuously
  Slotted via Layers

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00CXT0734T

  	
   

  	
   

  	
   

  	
  New Layout of On-Chip Inductors to Minimize Coupling Loss to
  Substrates at High Frequencies

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Closed and Combined with 00CXT0678T

  
	
  00CXT0824T

  	
   

  	
   

  	
   

  	
  Techniques to Reduce the Electroplated Metal Overburden in Inlaid
  Metal Processes; Selective Plating

  	
   

  	
  David Howard

  	
   

  	
   

  	
   

  	
  Innovation

  
	
  01CXT0008T

  	
   

  	
   

  	
   

  	
  A Process for Doping the Intrinsic Base of a SIGe NPN Transistor by
  Using Vapor Phase Doping Source

  	
   

  	
  Pankaj N. Joshi

  	
   

  	
   

  	
   

  	
  Innovation

  
	
  O1CXT0009T

  	
   

  	
   

  	
   

  	
  Methods for Incorporating P Type Dopants in a SiGe NPN by Ex-situ
  Processes

  	
   

  	
  Klaos Schuegraf; David L. Chapek; David Howard

  	
   

  	
   

  	
   

  	
  Innovation

  
	
  01CXT0025T-PRO

  	
   

  	
  60/276,277

  	
   

  	
  Method of Integrating Metal Resistor into a Subtractive Aluminum
  Metallization Flow

  	
   

  	
  KarRoy, Arjun; David Howard; Q Z Liu

  	
   

  	
  3/15/2001

  	
   

  	
  Pending-provisional

  
	
  01CXT0027T

  	
   

  	
   

  	
   

  	
  Method of Fabricating Thin Film Resistors for High-Speed Electronic
  Circuits

  	
   

  	
  Q.Z. Liu; David Howard

  	
   

  	
   

  	
   

  	
  Innovation

  
	
  01CXT0031T

  	
   

  	
   

  	
   

  	
  Lateral PNP Structure with Hole Burrier Layer on Emitter for
  Improving Beta

  	
   

  	
  Jiw Zheng Peihua YeMarco Racanelli

  	
   

  	
   

  	
   

  	
  Innovation

  
	
  01CXT0046T

  	
   

  	
   

  	
   

  	
  Technique to Achieve Thick ILD and Thick Vias for Metal Isolation
  from VLSI Wafer Substrates

  	
   

  	
  David Howard

  	
   

  	
   

  	
   

  	
  Innovation

  
	
  01CXT0090T

  	
   

  	
   

  	
   

  	
  High Performance Varactors for Wireless Applications

  	
   

  	
  Chun Hu

  	
   

  	
   

  	
   

  	
  Innovation

  
	
  01CXT0105T

  	
   

  	
   

  	
   

  	
  A Method of Nitride Spacer Etch for Submicron BiCMOS Application

  	
   

  	
  Kevin Q. Yin

  	
   

  	
   

  	
   

  	
  Innovation

  
	
  01CXT0146T

  	
   

  	
   

  	
   

  	
  Highly Scalable Self-Aligned Bipolar Transistor

  	
   

  	
  Amol Kalburge; Kevin Q. Yin; Klaus Schuegraf

  	
   

  	
   

  	
   

  	
  Assigned-unfiled

  
	
  01CXT0175T

  	
   

  	
   

  	
   

  	
  Selective Epitaxial SiGe HBT Emitter

  	
   

  	
  Greg U’Rea; Marco Racanelli; Klaus Schuegraf

  	
   

  	
   

  	
   

  	
  Assigned-unfiled

  
	
  01CXT0194T

  	
   

  	
   

  	
   

  	
  Method of Fabricating Self-Aligned Bipolar/BiCXMOS Semiconductor
  Devices

  	
   

  	
  Frank F. Wang

  	
   

  	
   

  	
   

  	
  Innovation

  
	
  01CXT0221T

  	
   

  	
   

  	
   

  	
  Strain Compensated SiGeC drift field transistor

  	
   

  	
  Marco Racanelli; Greg U’Rea; Klaus Schuegraf

  	
   

  	
   

  	
   

  	
  Assigned/Unfiled

  

 

3

 

	
  01CXT0244T

  	
   

  	
   

  	
   

  	
  Design and Integration of SiGeC Into a SiGe Drift Field NPN Transistor

  	
   

  	
  Marco Racanelli; Greg U’Rea; Klaus Schuegraf

  	
   

  	
   

  	
   

  	
  Assigned/unfilled

  
	
  01CXT0269T

  	
   

  	
   

  	
   

  	
  Two-step HF Last Cleaning Method

  	
   

  	
  Klaus Schuegraf; Greg D. U’Rea; David L. Chapek

  	
   

  	
   

  	
   

  	
  Approved to File

  
	
  01CXT0271T

  	
   

  	
   

  	
   

  	
  Method of forming L-shaped ‘oxide-nitride-oxide” spacer on CMOS for
  SiGe BiCMOS Application

  	
   

  	
  Klaus Schuegraf

  	
   

  	
   

  	
   

  	
  Closed

  
	
  01CXT0273T

  	
   

  	
   

  	
   

  	
  Temp Insensitive Resistors for Semiconductors

  	
   

  	
  Marco Racanelli; Chun Hu; Bruce Shen

  	
   

  	
   

  	
   

  	
  Approved to File

  
	
  01CXT0277T

  	
   

  	
   

  	
   

  	
  Method to Improve Alignment Tolerance for Self-Aligned SiGe NPN
  Device

  	
   

  	
  Klaus Schuegraf

  	
   

  	
   

  	
   

  	
  Approved to File

  
	
  01CXT0278T

  	
   

  	
   

  	
   

  	
  Method to Improve Emitter Dimension Control for Self-Aligned
  SiGe/SiGeC NPN Device

  	
   

  	
  Klaus Schuegraf

  	
   

  	
   

  	
   

  	
  Assigned-unfiled

  
	
  01CXT0280T

  	
   

  	
   

  	
   

  	
  Structure for Selective Emitter for Self-Aligned SiGe/SiGeC NPN

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Closed/Combined w/01CXT0175T

  
	
  01CXT0281T

  	
   

  	
   

  	
   

  	
  Emitter bandgap Engineering to Reduce Operating Voltages for Silicon
  NPN Devices

  	
   

  	
  Klaus Schuegraf

  	
   

  	
   

  	
   

  	
  Closed (11/28/01)

  
	
  01CXT0284T

  	
   

  	
   

  	
   

  	
  A Method of Forming CMOS Nitride Spacer for SiGe BiCMOS Applications

  	
   

  	
  Kevin Q. Yin; Amol Kalburge; Klaus Schuegraf

  	
   

  	
   

  	
   

  	
  Approved to File

  
	
  77E095/5

  	
   

  	
  4506437

  	
   

  	
  Proc.f/Fabricationo/HiDensty VLSI Crets Having Self-Aligned Gtes
  & Contcts f/Fets &

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Granted

  
	
  77E095/6

  	
   

  	
  4477962

  	
   

  	
  Proc.f/Fabrication o/HiDensty VLSI Crets Having Self-Aligned Gtes
  & Contcts F/Fets &

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Granted

  
	
  78E073/2

  	
   

  	
  4459937

  	
   

  	
  High Rate Resist Polymereization Method

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Granted

  
	
  79E030/1

  	
   

  	
  4396479

  	
   

  	
  Ion Etching Process w/Minimized Redeposition

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Granted

  
	
  82E032/

  	
   

  	
  4507852

  	
   

  	
  Method f/Making a Reliable Ohmic Contact Between Two Layers of
  Integrated Circuit Metallizations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Granted

  
	
  83E090/

  	
   

  	
  4639142

  	
   

  	
  Dimension Monitoring Technique for Semiconductor Fabrication

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Granted

  
	
  86E018/

  	
   

  	
  467867

  	
   

  	
  Planarization Process f/Double Metal MOS Using Spin-On Glass as Sacrificial
  Layer

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Granted

  

 

4

 

	
  88E060/

  	
   

  	
  5017199

  	
   

  	
  Spent Solvent Recovery in Circuit Processing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Granted

  
	
  94E064

  	
   

  	
   

  	
   

  	
  Improved Performance CMOS Process

  	
   

  	
  Bob L. Zwingman; R A Williams; Richard A Mann

  	
   

  	
   

  	
   

  	
  Abandoned 3/28/99

  
	
  97RSS017

  	
   

  	
   

  	
   

  	
  Improved Method for Shallow Trench Formation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Innovation

  
	
  97RSS109

  	
   

  	
   

  	
   

  	
  Interconnect with Embedded Low Dielectric Constant Insulators for
  Semiconductor IC Manufacturing

  	
   

  	
  Bin Zhao; Maureen R Brongo

  	
   

  	
   

  	
   

  	
  Closed

  
	
  97RSS256

  	
   

  	
  618672

  	
   

  	
  Interconnect with Low Dielectric Constant Insulators for
  Semiconductor Integrated Circuit Manufacturing

  	
   

  	
  Bin Zhao; Maureen R Bronzo

  	
   

  	
  2/13/2001

  	
   

  	
  Issued

  
	
  97RSS256 DIV

  	
   

  	
  09/317,536

  	
   

  	
  Interconnect with Low Dielectric Constant insulators for
  Semiconductor Integrated Circuit Manufacturing

  	
   

  	
  Bin Zhao; Maureen R Brongo

  	
   

  	
  5/24/1999

  	
   

  	
  Pending

  
	
  97RSS330

  	
   

  	
  09/210,965

  	
   

  	
  PECVD Inorganic Dielectric Layer for Photo Anti-Reflection Coating or
  Hard mask or Etch Stop for Metal or Oxide Etch or use it as a CMP Stop

  	
   

  	
  Maureen R Brongo; Shao-Wen Hsia

  	
   

  	
   

  	
   

  	
  Abandoned 11/14/00

  
	
  97RSS340

  	
   

  	
  629361

  	
   

  	
  High Resolution In-Situ Inorganic ARC/Metal Etch Process

  	
   

  	
  Maureen R Brongo; Michael J Berg; Shao-Wen Hsia

  	
   

  	
  9/18/2001

  	
   

  	
  Issued – Taiwan, Japan Singapore pending

  
	
  97RSS340 DIV-1

  	
   

  	
  6328848

  	
   

  	
  Apparatus for High-Resolution IN-Situ Plasma Etching of Inorganic and
  Metal Films

  	
   

  	
  Maureen R Brongo; Michael J Berg; Shao-Wen Hsia

  	
   

  	
   

  	
   

  	
  Issued

  
	
  97RSS357

  	
   

  	
   

  	
   

  	
  Methods and Apparatus for Manufacturing Semiconductors

  	
   

  	
  Lee Chung; Abhijit B Joshi; Kwong

  	
   

  	
   

  	
   

  	
  Abandoned 12/11/00

  
	
  97RSS358

  	
   

  	
  6180976

  	
   

  	
  Damascene Bottom Plate Metal-Insulator-Metal Capacitor

  	
   

  	
  KarRoy, Arjun

  	
   

  	
  1/30/2001

  	
   

  	
  Issued

  
	
  97RSS358 DIV

  	
   

  	
  09/772,726

  	
   

  	
  Thin-Film Capacitors and Methods for Forming the Same

  	
   

  	
  Arjun Kar Roy

  	
   

  	
  1/30/2001

  	
   

  	
  Divisional Pending

  
	
  97RSS359

  	
   

  	
  6245663

  	
   

  	
  IC Interconnect Structures and Methods for Making Same

  	
   

  	
  Bin Zhao; Maureen R Brongo

  	
   

  	
  6/30/2001

  	
   

  	
  Issued

  
	
  97RSS378

  	
   

  	
  6255192

  	
   

  	
  Improved Method for Barrier Layer Deposition or Selective
  Metallization of Trenches and Vias

  	
   

  	
  Dornisch, Deiter

  	
   

  	
  7/3/2001

  	
   

  	
  Issued – EP & JP pending

  
	
  97RSS402

  	
   

  	
  6119368

  	
   

  	
  Apparatus for Reducing Cool Chamber particles

  	
   

  	
  Sean P. Masterson

  	
   

  	
  9/19/2000

  	
   

  	
  Issued

  

 

5

 

	
  97RSS433

  	
   

  	
  6211561

  	
   

  	
  Interconnect Structure and Method Employing Air Gaps Between Metal
  lines and Between Metal Layers

  	
   

  	
  Bin Zhao

  	
   

  	
  4/3/2001

  	
   

  	
  Issued

  
	
  97RSS433

  	
   

  	
  6211561

  	
   

  	
  Interconnect Structure and Method Employing Air Gaps Between Metal
  lines and Between Metal Layers

  	
   

  	
  Bin Zhao

  	
   

  	
  4/3/2001

  	
   

  	
  Issued

  
	
  97RSS433DIV

  	
   

  	
  09/686,323

  	
   

  	
  Interconnect Structure and Method Employing Air Gaps Between Metal
  lines and Between Metal Layers

  	
   

  	
  Bin Zhao

  	
   

  	
  10/9/2000

  	
   

  	
  Divisional Pending

  
	
  97RSS434

  	
   

  	
  09/665.422

  	
   

  	
  A Damascene Interconnect Structure and Fabrication Method Having Air
  Gaps Between Metal Lines and Metal Layers

  	
   

  	
  Bin Zhao; Maureen R Brongo

  	
   

  	
  9/20/2000

  	
   

  	
  Pending

  
	
  97RSS515

  	
   

  	
  09/162,579

  	
   

  	
  Dummy Fill Cell for Reducing Layer-to-Layer Interaction

  	
   

  	
  Bob L Zwingman; Abhijit B Joshi

  	
   

  	
   

  	
   

  	
  Abandoned 5/21/01

  
	
  97RSS527

  	
   

  	
  6239026

  	
   

  	
  Nitride-Etch Stop for Poisoned Unlanded Vias

  	
   

  	
  David Feller; Qz Lui

  	
   

  	
  5/29/2001

  	
   

  	
  Issued

  
	
  97RSS543

  	
   

  	
  6143593

  	
   

  	
  Elevated Channel MOSFET

  	
   

  	
  Carlos J Augusto

  	
   

  	
  11/7/2000

  	
   

  	
  Issued – EP pending

  
	
  97RSS543 RCE

  	
   

  	
  09/616,233

  	
   

  	
  Elevated Channel Mosfet

  	
   

  	
  Carlos J Augusto

  	
   

  	
  7/14/2000

  	
   

  	
  RCE Pending

  
	
  97RSS546

  	
   

  	
  6251568

  	
   

  	
  Advanced Dry Strip of Sub-Quarter MicroInterconnect

  	
   

  	
  Shao-Wen Hsia; Peter Y Huang

  	
   

  	
  6/26/2001

  	
   

  	
  Issued

  
	
  98RSS036

  	
   

  	
  09/149,910

  	
   

  	
  Dual Damascene Interconnect Structures Employing Low-K Dielectric
  Materials

  	
   

  	
  Bin Zhao; Maureen R Brongo

  	
   

  	
  9/9/1998

  	
   

  	
  Pending – EP pending

  
	
  98RSS039

  	
   

  	
  09/224,339

  	
   

  	
  Structures and Fabrication of Dual Damascene Interconnect with
  Improved Reliability

  	
   

  	
  Bin Zhao

  	
   

  	
  12/31/1998

  	
   

  	
  Pending – Final

  
	
  98RSS063

  	
   

  	
  6284623

  	
   

  	
  Control of STI Narrow Width Effect with Nitride Undercut Etch and
  Self-Aligned Corner Implant

  	
   

  	
  Ping Zhang; Richard A Mann

  	
   

  	
  9/4/2001

  	
   

  	
  Issued

  
	
  98RSS098

  	
   

  	
  09/247/201

  	
   

  	
  Innovative Flourine-Based Dry Strip Process Flow On
  Sub-Quarter-Micron

  	
   

  	
  Peter Huang; Shao-Wen Hsia

  	
   

  	
  2/9/1999

  	
   

  	
  Pending

  
	
  98RSS217

  	
   

  	
  09/370,508

  	
   

  	
  Anti-Reflective Coating and Process Using an Anti-Reflective Coating

  	
   

  	
  Hong J Wu; Kevin Q Yin; Surya S Bhattacharya; Umesh ShRma; Xiaoming
  Li

  	
   

  	
  8/6/1999

  	
   

  	
  Pending

  
	
  98RSS237

  	
   

  	
  09/369,982

  	
   

  	
  Semiconductor Device Having a Passivation Layer and Method for its
  Fabrication

  	
   

  	
  Umesh Sharma; Marrina Mei

  	
   

  	
  8/6/1999

  	
   

  	
  Pending

  
	
  98RSS240

  	
   

  	
  6071809

  	
   

  	
  High Performance Dual-Damascene Interconnect Structures

  	
   

  	
  Bin Zhao

  	
   

  	
  6/62000

  	
   

  	
  Issued – EP and Taiwan pending

  

 

6

 

	
  98RSS265

  	
   

  	
  6271127

  	
   

  	
  Method and Apparatus for Dual Damascene Process

  	
   

  	
  Bin Zhao; David Feiler; Maureen R Brongo; Q S Liu

  	
   

  	
  8/7/2001

  	
   

  	
  Issued

  
	
  99RSS011

  	
   

  	
  6280794

  	
   

  	
  Method for Producing Intermetal Dielectric Material for Ultra Large
  Scale Integration Devices

  	
   

  	
  Bin Zhao; King-Ning Tu; Yuhuan Zu

  	
   

  	
  8/28/2001

  	
   

  	
  Issued

  
	
  99RSS059

  	
   

  	
  6225681

  	
   

  	
  Microelectric Interconnect Structures and Methods for Forming the
  Same

  	
   

  	
  Craig Davidson; S. Chungpaiboonpatana

  	
   

  	
  5/1/2001

  	
   

  	
  Issued – TW pending

  
	
  99RSS075

  	
   

  	
  6207551

  	
   

  	
  Method and Apparatus Using Formic Acid Vapor as Reducing Agent for
  Copper Wirebonding

  	
   

  	
  Craig Davidson; S. Chungpaiboonpatana

  	
   

  	
  3/27/2001

  	
   

  	
  Issued

  
	
  99RSS110

  	
   

  	
  09/721,342

  	
   

  	
  Method for Fabrication of an MIM Capacitor and Related Structure

  	
   

  	
  Phil Sherman; Arjun KarRoy; Marco Racanelli

  	
   

  	
  11/22/2000

  	
   

  	
  Pending

  
	
  99RSS110

  	
   

  	
  09/721,342

  	
   

  	
  Method for Fabrication of an MIM Capacitor and Related Structure

  	
   

  	
  Arjun KarRoy; Marco Racanelli; Phil N Sherman

  	
   

  	
  11/22/2000

  	
   

  	
  Pending

  
	
  99RSS126

  	
   

  	
  09/411/807

  	
   

  	
  Stepper Alignment Mark Design for Metal Layers When CMP Process is
  Used

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  99RSS131

  	
   

  	
   

  	
   

  	
  High Density Capacitor Formation

  	
   

  	
  Marco Racanelli; Zhe Zhang

  	
   

  	
   

  	
   

  	
  Assigned 6/00 Unfiled –

  
	
  99RSS140

  	
   

  	
  09/590,462

  	
   

  	
  Double-Implant High Performance Varactor and Method for Manufacturing
  Same

  	
   

  	
  Chun Hu; Marco Racanelli; Phil N Sherman

  	
   

  	
  6/9/2000

  	
   

  	
  Pending

  
	
  99RSS145

  	
   

  	
  09/594,851

  	
   

  	
  Selective Air Dielectric Technology for High Performance
  Interconnects

  	
   

  	
  Bin Zhao

  	
   

  	
  6/15/2000

  	
   

  	
  Pending

  
	
  99RSS145-DIV

  	
   

  	
  09/967,115

  	
   

  	
  Selective Air Dielectric Technology for High Performance
  Interconnects

  	
   

  	
  Bin Zhao

  	
   

  	
  9/28/2001

  	
   

  	
  Pending

  
	
  99RSS156

  	
   

  	
  09/575,055

  	
   

  	
  A Novel Cu/Low-k Process for Mixed Signal Circuits

  	
   

  	
  Bin Zhao; David Feiler; Maureen R Brongo; Phil N Sherman; Q Z Liu

  	
   

  	
  5/19/2000

  	
   

  	
  Pending

  
	
  99RSS184

  	
   

  	
  09/512,396

  	
   

  	
  Fabrication Method and Structures for Damascene Interconnects

  	
   

  	
  Bin Zhao

  	
   

  	
  2/24/2000

  	
   

  	
  Pending – PCT and Taiwan pending

  
	
  99RSS235

  	
   

  	
  6251796

  	
   

  	
  TaN Film as a Dielectric Material

  	
   

  	
  David T Young; Hadi Abdul-Ridha; Maureen R Brongo

  	
   

  	
  6/26/2001

  	
   

  	
  Issued

  
	
  99RSS235DIV

  	
   

  	
  09/61,489

  	
   

  	
  TaN Film as a Dielectric Material

  	
   

  	
  David T Young; Hadi Abdul-Ridha; Maureen R Brongo

  	
   

  	
  1/12/2001

  	
   

  	
  Divisional Pending

  
	
  99RSS248

  	
   

  	
  09/578,229

  	
   

  	
  Structure and Method for Fabrication of an Improved Capacitor

  	
   

  	
  Arjun KarRoy; Phil N Sherman

  	
   

  	
  5/24/2000

  	
   

  	
  Pending – PCT Pending

  

 

7

 

	
  99RSS287

  	
   

  	
  09/569,890

  	
   

  	
  Method for Fabrication of Damascene Interconnects and Related
  Structures

  	
   

  	
  Lawrence Camilletti; Q Z Liu

  	
   

  	
  5/11/2000

  	
   

  	
  Pending

  
	
  99RSS302

  	
   

  	
  09/430,729

  	
   

  	
  Improved Tungsten Plug for Deep-Submicron Contact and Vias

  	
   

  	
  David T Young; Hadi Abdul-Ridha; Maureen R Brongo; Shao-Wen Hsia

  	
   

  	
  10/29/1999

  	
   

  	
  Pending – NOA dated 7/17/01 – IF paid 10/17/01

  
	
  99RSS303

  	
   

  	
  09/583,593

  	
   

  	
  Method and Apparatus for Improving a Dark Field Inspection
  Environment

  	
   

  	
  Hao Zhou; Travis L Smith; William D Jimenez

  	
   

  	
  5/31/2000

  	
   

  	
  Pending

  
	
  99RSS344

  	
   

  	
  09/606,778

  	
   

  	
  Technique for Reducing 1/F Noise in Mosfets

  	
   

  	
  Anridduha B Joshi; Li-Ming Hwang; Sandeep D’Souza; Surya S
  Bhattacharya

  	
   

  	
   

  	
   

  	
  Divisional – to be filed (12/6/01)

  
	
  99RSS349

  	
   

  	
  619870

  	
   

  	
  Cu Pads Structures for Cu Chips

  	
   

  	
  Bin Zhao

  	
   

  	
  3/6/2001

  	
   

  	
  Issued–PCT and Taiwan pending

  
	
  99RSS349 CON

  	
   

  	
  09/716,350

  	
   

  	
  Bonding pad and Support Structure and Method for their Fabrication

  	
   

  	
  Bin Zhao

  	
   

  	
  11/20/2000

  	
   

  	
  Pending PCT Pending

  
	
  99RSS416

  	
   

  	
  09/559,292

  	
   

  	
  Fabrication Method and Structures of Low-K Damascene Interconnects

  	
   

  	
  Bin Zhao; Q.Z. Liu

  	
   

  	
  4/25/2000

  	
   

  	
  Pending

  
	
  99RSS442

  	
   

  	
   

  	
   

  	
  High Throughput Trench Fill with Improved Surface Morphology and
  Reduced Voiding

  	
   

  	
  Marco Racanelli; Michael A Todd

  	
   

  	
   

  	
   

  	
  Unfiled–

  
	
  99RSS451

  	
   

  	
  09/497,360

  	
   

  	
  Pre-Clean Chamber

  	
   

  	
  Sean P Masterson

  	
   

  	
  2/3/2000

  	
   

  	
  Pending –

  
	
  99RSS452

  	
   

  	
  09/498,169

  	
   

  	
  Wafer Detection Apparatus

  	
   

  	
  Sean P Masterson

  	
   

  	
  2/4/2000

  	
   

  	
  Pending

  

 

8

 

SCHEDULE 1.1(a)(vii)

 

KNOW-HOW

 

The Transferred
Know How shall include such proprietary, non-public information
including the processes, formulae, designs, methods, techniques, procedures,
concepts, developments, technologies and improvements, whether or not patented,
that are primarily related to, but not limited to, (i) the types of processes
listed in Table A attached to this Schedule 1.1(a)(vii) that have been or are
being produced or that have been or are under development, and (ii) the circuit
blocks listed in Table B attached to this Schedule 1.1(a)(vii). For the purpose
of clarity, the Transferred Know How shall exclude all know how, trade secrets
and other intellectual property rights primarily related to the Product
Technology.

 

 

Table A

 

	
  Process

  	
   

  	
  Document

  
	
  [...***...]

  

 

 

Table B

 

	
  Type

  	
   

  	
  Description

  	
   

  	
  Process

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  

 

 

SCHEDULE 1.1(b)

 

EXCLUDED ASSETS

 

 

Excluded assets.xls

 

Newport Beach Wafer Fab

Schedule 1.1(b)

Includes CIP

 

	
  Co.

  	
   

  	
  CC

  	
   

  	
  Asset No.

  	
   

  	
  Location

  	
   

  	
  Class

  	
   

  	
  Class Description

  	
   

  	
  Asset Description

  
	
  [...***...]

  

 

 

[Map]

 

 

SCHEDULE 1.2(b)(ii)

 

Employment Related Liabilities to be Assumed by the
Joint Venture

 

Employment Related Liabilities

 

	
  Title

  	
   

  	
  Amount(1)

  	
   

  	
  Cut-Off Date

  	
   

  	
  Description

  
	
  Vacation

  	
   

  	
  1,747,708

  	
   

  	
  5/1/02

  	
   

  	
  Employees’ balances as of cut-off date

  
	
  Sick

  	
   

  	
  262,470

  	
   

  	
  5/1/02

  	
   

  	
  Employees’ balances as of cut-off date

  
	
  CSSIP (Collins Significant Service Plan)

  	
   

  	
  515,600

  	
   

  	
  5/1/02

  	
   

  	
  Total liability as of cut-off date (balance is all union employees)

  
	
   

  	
   

  	
  2,525,778

  	
   

  	
   

  	
   

  	
   

  

 

(1)           Actual amounts will be computed as of May 1, 2002.

 

 

SCHEDULE 1.2(b)(v)

 

ASSUMED LIABILITIES RELATED TO CAPITAL
EXPENDITURES AND

 

OTHER ACQUISITION COMMITMENTS

 

	
  DESCRIPTION

  	
   

  	
  DOLLAR AMOUNT OF LIABILITY

  	
   

  
	
  AMAT SiGe Deposition Tool

  Installed & accepted

  Currently on bailment, payable on Oct. 1, 2002

  	
   

  	
  $

  	
  2,155,000

  	
   

  
					

 

 

CONEXANT DISCLOSURE SCHEDULE

PART 2.2(a)

 

ENCUMBRANCES ON ASSETS BEING TRANSFERRED

 

See Parts 2.2(b) and 2.5(e) of this Disclosure Schedule.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.2(b)

 

LEASED OR LICENSED ASSETS BEING TRANSFERRED

 

	
  PO #/ Contract

  	
   

  	
  Vendor

  	
   

  	
  Item

  	
   

  	
  Term

  	
   

  	
  Mo Pymt

  	
   

  	
  FY02

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NB28390026 /

  No contract

  	
   

  	
  DPR Construction Inc.

  	
   

  	
  14k Sq Ft. Storage, Santa Ana, CA

  	
   

  	
  10/01 – 03/02

  	
   

  	
  7,000

  	
   

  	
  42,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NB08240014 /

  Contract

  	
   

  	
  GE Capital

  	
   

  	
  193 ArF Step & Scanner

  	
   

  	
  03/00 – 03/03

  	
   

  	
  139,306

  	
   

  	
  1,671,672

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NB28390030 /

  Contract

  	
   

  	
  Sasco

  	
   

  	
  Generators

  	
   

  	
  12/01 – 10/02

  	
   

  	
  41,000

  	
   

  	
  410,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NB98140030 /

  Contract

  	
   

  	
  Air Products

  	
   

  	
  Nitrogen Plant – Base Facility Charge

  	
   

  	
  09/00 – 09/15

  	
   

  	
  87,320

  	
   

  	
  1,047,840

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NB28600049 /

  Contract

  	
   

  	
  Photronics, Inc.

  	
   

  	
  Starlight 300 Inspection System

  	
   

  	
  09/01 – 09/04

  	
   

  	
  12,603

  	
   

  	
  151,236

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Totals

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,322,748

  

 

 

Disclosure
Schedule

 

Part 2.2(c)

 

Assets
Disposed of Since January 1, 2001

 

	
  Co CC

  	
   

  	
  Asset
  No.

  	
   

  	
  Disposition

  	
   

  	
  Location

  	
   

  	
  Class
  Description

  	
   

  	
  Asset
  Description

  	
   

  	
  Net

  Value

  	
   

  	
  Book

  	
   

  
	
  39-680

  	
   

  	
  842780-0

  	
   

  	
  Donated UC
  Riverside 02/01/02

  	
   

  	
  503

  	
   

  	
  Machinery &
  Equipment

  	
   

  	
  MEAS MACH,
  THCKNESS

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  39-680

  	
   

  	
  843814-0

  	
   

  	
  Donated UC
  Riverside 02/01/02

  	
   

  	
  503

  	
   

  	
  Machinery &
  Equipment

  	
   

  	
  BENCH, WET

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  39-680

  	
   

  	
  843830-0

  	
   

  	
  Donated UC
  Riverside 02/01/02

  	
   

  	
  503

  	
   

  	
  Machinery &
  Equipment

  	
   

  	
  RINSER/DRYER,
  WAFER

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  39-680

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  39-683

  	
   

  	
  843263-0

  	
   

  	
  Donated UC
  Riverside 02/01/02

  	
   

  	
  503

  	
   

  	
  Machinery &
  Equipment

  	
   

  	
  WET BENCH

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  39-683

  	
   

  	
  843263-1

  	
   

  	
  Donated UC
  Riverside 02/01/02

  	
   

  	
  503

  	
   

  	
  Machinery &
  Equipment

  	
   

  	
  WORK STATION

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  39-683

  	
   

  	
  843344-0

  	
   

  	
  Donated UC
  Riverside 02/01/02

  	
   

  	
  503

  	
   

  	
  Machinery &
  Equipment

  	
   

  	
  ETCHER, WAFER

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  39-683

  	
   

  	
  844143-0

  	
   

  	
  Sold to Micorsemi
  01/27/02

  	
   

  	
  503

  	
   

  	
  Machinery &
  Equipment

  	
   

  	
  LOADER, WAFER

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  39-683

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39-686

  	
   

  	
  1083361-0

  	
   

  	
  Donated UC
  Riverside 02/01/02

  	
   

  	
  501

  	
   

  	
  Machinery &
  Equipment

  	
   

  	
  ENCLOSURE FOR
  CRITICAL LAYER - DNS-80B

  	
   

  	
   

  	
   

  	
  695.00

  	
   

  
	
  39-686

  	
   

  	
  54840-0

  	
   

  	
  Donated UC
  Riverside 02/01/02

  	
   

  	
  503

  	
   

  	
  Machinery &
  Equipment

  	
   

  	
  STATION, DEFECT
  REVIEW

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  39-686

  	
   

  	
  6374-0

  	
   

  	
  Donated UC
  Riverside 02/01/02

  	
   

  	
  503

  	
   

  	
  Machinery &
  Equipment

  	
   

  	
  CLEANING SYSTEM,
  CMP

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  39-686

  	
   

  	
  53412-0

  	
   

  	
  Sold to Micorsemi
  01/27/02

  	
   

  	
  503

  	
   

  	
  Machinery &
  Equipment

  	
   

  	
  TABLE, ISOLATION

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  39-686

  	
   

  	
  39-686

  	
   

  	
  Disposal

  	
   

  	
  503

  	
   

  	
  Office Equipment

  	
   

  	
  FAX MACHINE

  	
   

  	
   

  	
   

  	
  629.00

  	
   

  
	
  39-686

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,324.00

  	
   

  
	
  39-951

  	
   

  	
  39-951

  	
   

  	
  Disposal

  	
   

  	
  502

  	
   

  	
  Leasehold
  Improvement

  	
   

  	
  LEASEHOLD
  IMPROVEMENTS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39-951

  	
   

  	
  39-951

  	
   

  	
  Disposal

  	
   

  	
  504

  	
   

  	
  Building
  Equipment

  	
   

  	
  BUILDING SIGNAGE

  	
   

  	
   

  	
   

  	
  30,055.00

  	
   

  
	
  39-951

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  30,055.00

  	
   

  
	
  Grand
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  31,379.00

  	
   

  

 

 

CONEXANT SYSTEMS, INC.

 

Fixed Assets – Photomask Operations (Cost Center 654)

 

	
  PROMIS ID

  	
   

  	
  Asset

  	
   

  	
  SNo.

  	
   

  	
  Asset&Sno.

  	
   

  	
  Asset
  Description

  	
   

  	
  Cap.date

  	
   

  	
  Type
  name

  	
   

  	
  Asset
  manufacturer

  
	
   

  	
   

  	
  4748

  	
   

  	
  0

  	
   

  	
  4748-0

  	
   

  	
  INSPECTION
  SYSTEM, RETICLE

  	
   

  	
  5151995

  	
   

  	
  KLA 331-3 SYSTEM

  	
   

  	
  KLA INSTRUMENTS
  CORP

  
	
   

  	
   

  	
  4748

  	
   

  	
  1

  	
   

  	
  4748-1

  	
   

  	
  INSP SYSTEM,
  RETICLE

  	
   

  	
  9011996

  	
   

  	
  SWAPED FOR KLA

  	
   

  	
  KLA INSTRUMENTS

  
	
  N/A

  	
   

  	
  4748

  	
   

  	
  2

  	
   

  	
  4748-2

  	
   

  	
  INSP SYSTEM,
  RETICLE

  	
   

  	
  3151997

  	
   

  	
  353UV See Aset
  No.

  	
   

  	
  KLA INSTRUMENTS

  
	
   

  	
   

  	
  4748

  	
   

  	
  3

  	
   

  	
  4748-3

  	
   

  	
  INSPECTION
  SYSTEM, RETICLE

  	
   

  	
  3101998

  	
   

  	
  1082575

  	
   

  	
  KLA INSTRUMENTS
  CORP

  
	
   

  	
   

  	
  4748

  	
   

  	
  4

  	
   

  	
  4748-4

  	
   

  	
  INSPECTION
  SYSTEM, RETICLE

  	
   

  	
  3011999

  	
   

  	
   

  	
   

  	
  KLA INSTRUMENTS
  CORP

  
	
  N/A

  	
   

  	
  5966

  	
   

  	
  0

  	
   

  	
  5966-0

  	
   

  	
  WORKSTATION,
  COMPUTER

  	
   

  	
  5151995

  	
   

  	
  61

  	
   

  	
  SUN MICROSYSTEMS

  
	
  N/A

  	
   

  	
  5967

  	
   

  	
  0

  	
   

  	
  5967-0

  	
   

  	
  WORKSTATION,
  COMPUTER

  	
   

  	
  5151995

  	
   

  	
  61

  	
   

  	
  SUN MICROSYSTEMS

  
	
  N/A

  	
   

  	
  5968

  	
   

  	
  0

  	
   

  	
  5968-0

  	
   

  	
  SUBSYSTEM, DISK

  	
   

  	
  5151995

  	
   

  	
  ST410800N

  	
   

  	
  SEAGATE
  TECHNOLOGY

  
	
  N/A

  	
   

  	
  5972

  	
   

  	
  0

  	
   

  	
  5972-0

  	
   

  	
  DRIVE, TAPE

  	
   

  	
  5151995

  	
   

  	
  HP88780B

  	
   

  	
  HEWLETT-PACKARD

  
	
  8NIK02

  	
   

  	
  6007

  	
   

  	
  0

  	
   

  	
  6007-0

  	
   

  	
  METROLOGY SYSTEM,
  LASER

  	
   

  	
  5151995

  	
   

  	
  NIKON 51

  	
   

  	
  NIKON PRECISION,
  INC.

  
	
  N/A

  	
   

  	
  6008

  	
   

  	
  0

  	
   

  	
  6008-0

  	
   

  	
  WORKSTATION,
  COMPUTER

  	
   

  	
  5151995

  	
   

  	
  SPARC 1040

  	
   

  	
  SUN MICROSYSTEMS

  
	
  8HMP01

  	
   

  	
  6220

  	
   

  	
   

  	
   

  	
  6220-0

  	
   

  	
  PROCESSOR, SINGLE
  SUBSTRATE

  	
   

  	
  5151995

  	
   

  	
  HMP-90

  	
   

  	
  STEAG MICROTECH,
  INC

  
	
  8HMR02

  	
   

  	
  6221

  	
   

  	
   

  	
   

  	
  6221-0

  	
   

  	
  CLEANER, SINGLE
  SUBSTRATE

  	
   

  	
  5151995

  	
   

  	
  HMR-90

  	
   

  	
  STEAG MICROTECH,
  INC

  
	
  N/A

  	
   

  	
  6679

  	
   

  	
  0

  	
   

  	
  6679-0

  	
   

  	
  WORKSTATION,
  COMPUTER

  	
   

  	
  5151995

  	
   

  	
  61

  	
   

  	
  SUN MICROSYSTEMS

  
	
  N/A

  	
   

  	
  6679

  	
   

  	
  1

  	
   

  	
  6679-1

  	
   

  	
  WORKSTATION,
  COMPUTER

  	
   

  	
  3101998

  	
   

  	
  61

  	
   

  	
  SUN MICROSYSTEMS

  
	
  8ANA01

  	
   

  	
  48051

  	
   

  	
  0

  	
   

  	
  48051-0

  	
   

  	
  PLASMA SYSTEM,
  DESCUM

  	
   

  	
  5151995

  	
   

  	
  SP 150

  	
   

  	
  ANATECH LTD.

  
	
  8KLA 12/13

  	
   

  	
  48085

  	
   

  	
  0

  	
   

  	
  48085-0

  	
   

  	
  INSPECTION
  SYSTEM, MASK

  	
   

  	
  1151996

  	
   

  	
  KLA-239E

  	
   

  	
  KLA INSTRUMENTS

  
	
  8KMS01

  	
   

  	
  49277

  	
   

  	
   

  	
   

  	
  49277-0

  	
   

  	
  METROLOGY SYSTEM,
  MASK

  	
   

  	
  10151996

  	
   

  	
  KMS-310RT

  	
   

  	
  TECHNICAL
  INSTRUMENTS CO

  
	
  8ENGX1

  	
   

  	
  57789

  	
   

  	
  0

  	
   

  	
  57789-0

  	
   

  	
  TERMINAL X

  	
   

  	
  1151997

  	
   

  	
  NONEG

  	
   

  	
  NETWORK COMPUTING

  
	
  N/A

  	
   

  	
  71416

  	
   

  	
  1

  	
   

  	
  71416-1

  	
   

  	
  MOTOR GENERATOR
  SETS FOR MEBES

  	
   

  	
  10102000

  	
   

  	
   

  	
   

  	
  INT’L COMPUTER
  POWER

  
	
  8MIC07

  	
   

  	
  109557

  	
   

  	
  0

  	
   

  	
  109557-0

  	
   

  	
  MICROSCOPE, INSP

  	
   

  	
  10161986

  	
   

  	
  WM30

  	
   

  	
  MICROCRAFT

  
	
   

  	
   

  	
  109557

  	
   

  	
  1

  	
   

  	
  109557-1

  	
   

  	
  MICROSCOPE, INSP

  	
   

  	
  8102000

  	
   

  	
  WM30

  	
   

  	
  PROBING SOLUTION
  INC.

  
	
   

  	
   

  	
  110636

  	
   

  	
  0

  	
   

  	
  110636-0

  	
   

  	
  LITHOGRAPHY
  SYSTEM, LASER BEAM

  	
   

  	
  8091988

  	
   

  	
  CORE-2000

  	
   

  	
  ATEQ CORP.

  
	
  8ATQ01

  	
   

  	
  110636

  	
   

  	
  1

  	
   

  	
  110636-1

  	
   

  	
  LITHOGRAPHY
  SYSTEM, LASER BEAM

  	
   

  	
  2151997

  	
   

  	
  CORE-2100 Upgrade

  	
   

  	
  ETEC SYSTEMS,
  INC.

  
	
   

  	
   

  	
  110636

  	
   

  	
  2

  	
   

  	
  110636-2

  	
   

  	
  LITHOGRAPHY
  SYSTEM, LASER BEAM

  	
   

  	
  4031999

  	
   

  	
  CORE-2564 Upgrade

  	
   

  	
  ETEC SYSTEMS

  
	
   

  	
   

  	
  110696

  	
   

  	
  0

  	
   

  	
  110696-0

  	
   

  	
  INSPECTION SYS,
  RETICLE

  	
   

  	
  5131988

  	
   

  	
  KLA-239

  	
   

  	
  KLA INSTRUMENTS
  CORP

  
	
  8KLA04/05

  	
   

  	
  110696

  	
   

  	
  1

  	
   

  	
  110696-1

  	
   

  	
  INSPECTION SYS,
  RETICLE

  	
   

  	
  2151990

  	
   

  	
  Upgrade

  	
   

  	
  KLA INSTRUMENTS

  
	
   

  	
   

  	
  110696

  	
   

  	
  2

  	
   

  	
  110696-2

  	
   

  	
  INSPECTION SYS,
  RETICLE

  	
   

  	
  7151995

  	
   

  	
  Upgrade

  	
   

  	
  KLA INSTRUMENTS

  
	
  8QUA02

  	
   

  	
  111206

  	
   

  	
  0

  	
   

  	
  111206-0

  	
   

  	
  REPAIR STATION,
  MASK

  	
   

  	
  8121988

  	
   

  	
  840

  	
   

  	
  QUANTRONIX CORP.

  
	
   

  	
   

  	
  111206

  	
   

  	
  1

  	
   

  	
  111206-1

  	
   

  	
  REPAIR STATION,
  MASK

  	
   

  	
  5151995

  	
   

  	
  840e Upgrade

  	
   

  	
  EXCEL QUANTRONIX

  
	
  N/A

  	
   

  	
  366493

  	
   

  	
  0

  	
   

  	
  366493-0

  	
   

  	
  WORK STATION

  	
   

  	
  10161982

  	
   

  	
  WPS500-S

  	
   

  	
   

  
	
   

  	
   

  	
  375445

  	
   

  	
  0

  	
   

  	
  375445-0

  	
   

  	
  MICROSCOPE, INSP

  	
   

  	
  3161984

  	
   

  	
  WM24

  	
   

  	
  M & M
  MICROSCOPES

  
	
   

  	
   

  	
  375447

  	
   

  	
  0

  	
   

  	
  375447-0

  	
   

  	
  MICROSCOPE, INSP

  	
   

  	
  3161984

  	
   

  	
  WM24

  	
   

  	
  M & M MICROSCOPES

  
	
  8SUR01

  	
   

  	
  843218

  	
   

  	
  0

  	
   

  	
  843218-0

  	
   

  	
  DETECTION SYSTEM

  	
   

  	
  4151990

  	
   

  	
  70-01280

  	
   

  	
  TENCOR

  
	
  N/A

  	
   

  	
  843388

  	
   

  	
  0

  	
   

  	
  843388-0

  	
   

  	
  TABLE,
  VIBRATION-FREE

  	
   

  	
  9151990

  	
   

  	
  1201-02-00

  	
   

  	
  KINETIC SYSTEMS

  
	
  8EBE02

  	
   

  	
  844832

  	
   

  	
  0

  	
   

  	
  844832-0

  	
   

  	
  LITHOGRAPHY
  SYSTEM, ELECTRON BEAM

  	
   

  	
  10151992

  	
   

  	
  MEBES 3

  	
   

  	
  PERKIN-ELMER

  
	
   

  	
   

  	
  844832

  	
   

  	
  1

  	
   

  	
  844832-1

  	
   

  	
  LITHOGRAPHY
  SYSTEM, ELECTRON BEAM

  	
   

  	
  5151995

  	
   

  	
  MEBES IV Upgrades

  	
   

  	
  ETEC SYSTEMS

  
	
  8HPB01

  	
   

  	
  845502

  	
   

  	
  0

  	
   

  	
  845502-0

  	
   

  	
  PROCESSOR, E-BEAM
  (hot plate bake system)

  	
   

  	
  7151993

  	
   

  	
  2000lx

  	
   

  	
  BREWER SCIENCE,
  INC.

  
	
  8HME01

  	
   

  	
  845510

  	
   

  	
  0

  	
   

  	
  845510-0

  	
   

  	
  PROCESSOR, E-BEAM

  	
   

  	
  7151993

  	
   

  	
  HME-90

  	
   

  	
  HAMATECH

  
	
  8ENV13

  	
   

  	
  845511

  	
   

  	
  0

  	
   

  	
  845511-0

  	
   

  	
  CHAMBER,
  ENVIRONMENTAL

  	
   

  	
  7151993

  	
   

  	
  HME-90 Chamber

  	
   

  	
  HAMATECH

  
	
  8ASC01

  	
   

  	
  1076828

  	
   

  	
  0

  	
   

  	
  1076828-0

  	
   

  	
  CLEANER, SINGLE
  SUBSTRATE

  	
   

  	
  12151997

  	
   

  	
  HMR ASC 500

  	
   

  	
  STEAG MICROTECH,
  INC.

  
	
  8MIC08

  	
   

  	
  1076922

  	
   

  	
  0

  	
   

  	
  1076922-0

  	
   

  	
  INSPECTION
  STATION, PHOTOMASK

  	
   

  	
  3111998

  	
   

  	
  CFG1080

  	
   

  	
  PROBING
  SOLUTIONS, INC.

  
	
   

  	
   

  	
  1076922

  	
   

  	
  1

  	
   

  	
  1076922-1

  	
   

  	
  INSPECTION
  STATION, PHOTOMASK

  	
   

  	
  8102000

  	
   

  	
  CFG1080

  	
   

  	
  PROBING
  SOLUTIONS, INC.

  

 

1

 

	
  PROMIS ID

  	
   

  	
  Asset

  	
   

  	
  SNo.

  	
   

  	
  Asset&Sno.

  	
   

  	
  Asset
  Description

  	
   

  	
  Cap.date

  	
   

  	
  Type
  name

  	
   

  	
  Asset
  manufacturer

  
	
  N/A

  	
   

  	
  1077015

  	
   

  	
  1

  	
   

  	
  1077015-1

  	
   

  	
  MOTOR GENERATOR
  SETS — BATTERY FOR MEBES 4500S

  	
   

  	
  10102000

  	
   

  	
  20 MINUTES

  	
   

  	
  SASCO

  
	
  N/A

  	
   

  	
  1077409

  	
   

  	
  0

  	
   

  	
  1077409-0

  	
   

  	
  CAROUSEL, BUBBLE

  	
   

  	
  6011988

  	
   

  	
  3570C11

  	
   

  	
  DRYDEN ENGINEERING

  
	
  8HMR03

  	
   

  	
  1077435

  	
   

  	
  0

  	
   

  	
  1077435-0

  	
   

  	
  MASK CLEANER,
  SINGLE SUBSTRATE

  	
   

  	
  3091998

  	
   

  	
  HMR-900

  	
   

  	
  STEAG MICROTECH,
  INC.

  
	
  8HMR04

  	
   

  	
  1077436

  	
   

  	
  0

  	
   

  	
  1077436-0

  	
   

  	
  MASK CLEANER,
  SINGLE SUBSTRATE

  	
   

  	
  3091998

  	
   

  	
  HMR-900

  	
   

  	
  STEAG MICROTECH,
  INC.

  
	
  N/A

  	
   

  	
  1077442

  	
   

  	
  0

  	
   

  	
  1077442-0

  	
   

  	
  LAMP, INSPECTION

  	
   

  	
  3101998

  	
   

  	
  YP-250-1

  	
   

  	
  YAMADA

  
	
  N/A

  	
   

  	
  1077444

  	
   

  	
  0

  	
   

  	
  1077444-0

  	
   

  	
  RACK, SHIELD
  SYSTEM CAROUSEL

  	
   

  	
  3101998

  	
   

  	
  NONE

  	
   

  	
  DRYDEN
  ENGINEERING CO. INC.

  
	
  8KLA23/24

  	
   

  	
  1077455

  	
   

  	
  0

  	
   

  	
  1077455-0

  	
   

  	
  INSPECTION
  SYSTEM, RETICLE

  	
   

  	
  4151998

  	
   

  	
  KLA351-4 C4

  	
   

  	
  KLA INSTRUMENTS
  CORPORATION

  
	
   

  	
   

  	
  1077455

  	
   

  	
  1

  	
   

  	
  1077455-1

  	
   

  	
  INSPECTION
  SYSTEM, RETICLE

  	
   

  	
  4031999

  	
   

  	
  KLA351-4 C4

  	
   

  	
  KLA INSTRUMENTS
  CORPORATION

  
	
  8FIX02

  	
   

  	
  1077456

  	
   

  	
  0

  	
   

  	
  1077457-0

  	
   

  	
  PELLICLE MOUNTER

  	
   

  	
  3101998

  	
   

  	
  7002A

  	
   

  	
  MICRO
  LITHOGRAPHY, INC.

  
	
  8FIX03

  	
   

  	
  1077457

  	
   

  	
  0

  	
   

  	
  1077457-0

  	
   

  	
  PELLICLE MOUNTER

  	
   

  	
  3101998

  	
   

  	
  7002A

  	
   

  	
  MICRO LITHOGRAPHY,
  INC.

  
	
  8ANA02

  	
   

  	
  1077458

  	
   

  	
  0

  	
   

  	
  1077458-0

  	
   

  	
  PLASMA DESCUM
  SYSTEM

  	
   

  	
  3101998

  	
   

  	
  SP150

  	
   

  	
  ANATECH LTD.

  
	
  8MIC11

  	
   

  	
  1077604

  	
   

  	
  0

  	
   

  	
  1077604-0

  	
   

  	
  MICROSCOPE,
  INSPECTION

  	
   

  	
  3101998

  	
   

  	
  WM-42-8P-V1

  	
   

  	
  MICROMANIPULATOR
  COMPANY

  
	
   

  	
   

  	
  1077604

  	
   

  	
  1

  	
   

  	
  1077604-1

  	
   

  	
  MICROSCOPE,
  INSPECTION

  	
   

  	
  8102000

  	
   

  	
  WM-42-8P-V1

  	
   

  	
  PROBING SOLUTION
  INC.

  
	
  8HMR05

  	
   

  	
  1077710

  	
   

  	
  0

  	
   

  	
  1077710-0

  	
   

  	
  MASK CLEANER,
  SINGLE SUBSTRATE

  	
   

  	
  60119981

  	
   

  	
  HMR-900

  	
   

  	
  STEAGH/HAMATECH

  
	
  8EBE03

  	
   

  	
  1078257

  	
   

  	
  0

  	
   

  	
  1078257-0

  	
   

  	
  LITHOGRAPHY
  SYSTEM, ELECTRON BEAM

  	
   

  	
  5151998

  	
   

  	
  MEBES 4500S

  	
   

  	
  ETEC SHSTEMS,
  INC.

  
	
  8SLR01

  	
   

  	
  1078294

  	
   

  	
   

  	
   

  	
  1078294-0

  	
   

  	
  ETCH SYSTEM, MASK
  DRY

  	
   

  	
  5151998

  	
   

  	
  SLR-770

  	
   

  	
  PLASMA-THERM,
  INC.

  
	
  8ASP01

  	
   

  	
  1078426

  	
   

  	
   

  	
   

  	
  1078426-0

  	
   

  	
  PROCESSOR,
  ADVANCED SINGLE SUBSTRATE

  	
   

  	
  9151998

  	
   

  	
  ASP-500

  	
   

  	
  STEAG MICROTECH,
  INC.

  
	
  8SEM01

  	
   

  	
  1079428

  	
   

  	
  0

  	
   

  	
  1079428-0

  	
   

  	
  MICROSCOPE,
  SCANNING ELECTRON

  	
   

  	
  9101999

  	
   

  	
  KLA 8100-XPR

  	
   

  	
  KLA-TENCOR
  CORPORATION

  
	
  8ASE01

  	
   

  	
  1079429

  	
   

  	
  0

  	
   

  	
  1079429-0

  	
   

  	
  PROCESSOR, MASK

  	
   

  	
  12101998

  	
   

  	
  ASE-500

  	
   

  	
  STEAG/HAMA TECH

  
	
   

  	
   

  	
  1079429

  	
   

  	
  1

  	
   

  	
  1079429-1

  	
   

  	
  PROCESSOR, MASK

  	
   

  	
  6101999

  	
   

  	
  ASE-500 Chamber

  	
   

  	
  STEAG/HAMA TECH

  
	
  8AFM01

  	
   

  	
  1079783

  	
   

  	
  0

  	
   

  	
  1079783-0

  	
   

  	
  AFM DEFECT
  METROLOGY SYSTEM

  	
   

  	
  3011999

  	
   

  	
  DIMENSIONS 3500

  	
   

  	
  DIGITAL
  INSTRUMENTS

  
	
  8KMS02

  	
   

  	
  1079790

  	
   

  	
  0

  	
   

  	
  1079790-0

  	
   

  	
  METROLOGY SYSTEM,
  MAKS LINEWIDTH

  	
   

  	
  3011999

  	
   

  	
  KMS-400RT

  	
   

  	
  TECHNICAL
  INSTRUMENTS CO.

  
	
  8MPM01

  	
   

  	
  1081931

  	
   

  	
  0

  	
   

  	
  1081931-0

  	
   

  	
  PHASE-SHIFT
  METEROLOGY SYSTEM

  	
   

  	
  12021999

  	
   

  	
  MPM-248

  	
   

  	
  LASERTECH

  
	
   

  	
   

  	
  1082575

  	
   

  	
  0

  	
   

  	
  1082575-0

  	
   

  	
  8KLA25 SYSTEM
  UPGRADINGFROM 353UV TO 363UV

  	
   

  	
  2102000

  	
   

  	
  K-T 353UV to 363
  UV

  	
   

  	
  KLA-TENCOR

  
	
  8KLA25

  	
   

  	
  1082575

  	
   

  	
  1

  	
   

  	
  1082575-1

  	
   

  	
  GIGAPREP OPTION
  FOR KLA363

  	
   

  	
  6012000

  	
   

  	
  KLA363 upgrade

  	
   

  	
  KLA-TENCOR

  
	
   

  	
   

  	
  1082575

  	
   

  	
  3

  	
   

  	
  1082575-3

  	
   

  	
  8KLA25 SYSTEM
  UPGRADINGFR. 363UV TO 365UV

  	
   

  	
  10102000

  	
   

  	
  KLA 365UV-HR
  Upgrade

  	
   

  	
  KLA-TENCOR

  
	
   

  	
   

  	
  1082575

  	
   

  	
  99

  	
   

  	
  1082575-99

  	
   

  	
  8KLA25 SYSTEM
  UPGRADINGFROM 353UV TO 363UV

  	
   

  	
  10102000

  	
   

  	
  K-T 353UV to 363
  UV

  	
   

  	
  KLA-TENCOR

  
	
  8LMD01

  	
   

  	
  1083106

  	
   

  	
  0

  	
   

  	
  1083106-0

  	
   

  	
  RESIST PATTERN
  INSPECTION SYSTEM — 9MD BINARY

  	
   

  	
  5012000

  	
   

  	
  9MD84SR(1)

  	
   

  	
  LASERTEC

  
	
   

  	
   

  	
  1083106

  	
   

  	
  1

  	
   

  	
  1083106-1

  	
   

  	
  LASERTEC MD 2000
  UPGRADE

  	
   

  	
  12192000

  	
   

  	
  MD-2000 upgrade

  	
   

  	
  LASERTEC

  
	
  8ASR01

  	
   

  	
  1084601

  	
   

  	
  0

  	
   

  	
  1084601-0

  	
   

  	
  ASR 5000 TRACK —
  PSM RESIST COAT TRACK

  	
   

  	
  1022001

  	
   

  	
  ASR-5000

  	
   

  	
  STEAG HAMATECH

  
	
  8QUA04

  	
   

  	
  1084602

  	
   

  	
  0

  	
   

  	
  1084602-0

  	
   

  	
  PHOTOMASK LASER
  REPAIR SYSTEM

  	
   

  	
  1022001

  	
   

  	
  Model 855

  	
   

  	
  QHANTRONIX

  
	
  8AMT01

  	
   

  	
  1084635

  	
   

  	
  0

  	
   

  	
  1084635-0

  	
   

  	
  ETCHER, CENTURA
  II DRY ETCH

  	
   

  	
  2012001

  	
   

  	
  Model 5202

  	
   

  	
  APPLIED MATERIALS

  
	
  N/A

  	
   

  	
  1084638

  	
   

  	
  0

  	
   

  	
  1084638-0

  	
   

  	
  FILM TEK 2000,
  THIN FILM CHARACTERIZATION

  	
   

  	
  2012001

  	
   

  	
  FT391F

  	
   

  	
  SCIENTIFIC
  COMPUTING

  
	
  8AIM01

  	
   

  	
  1084795

  	
   

  	
   

  	
   

  	
  1084795-0

  	
   

  	
  MICROSCOPE,
  MICROLITHOGRAPHY SILUATION AIMS

  	
   

  	
  6012001

  	
   

  	
  MSM-100

  	
   

  	
  ZEISS

  
	
  8FEI01

  	
   

  	
  1083918

  	
   

  	
  0

  	
   

  	
  1083918-0

  	
   

  	
  FIB MASK
  REPAIR/SURFACEINTERFACE SYSTEM

  	
   

  	
  9102000

  	
   

  	
  PSM8000

  	
   

  	
  FEI MICRON

  
	
  8SNP01

  	
   

  	
  1083920

  	
   

  	
  0

  	
   

  	
  1083920-0

  	
   

  	
  MICROSCOPE, MASK
  NANOPROFILER SNP 9000

  	
   

  	
  10102000

  	
   

  	
  SNP9000

  	
   

  	
  FEI
  MICRON/SURFACE INTERFACE

  
	
  N/A

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  MASK SPIN BAKE
  UNIT FOR PSM 2ND LAYER COND. PLYM

  	
   

  	
  N/A

  	
   

  	
  CEE MODEL 100CB

  	
   

  	
  BREWER SCIENCE,
  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  NVB $19m

  

 

2

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.4(a)

 

ALL CONTRACTS RELATING TO WFO

 

See Schedule 1.1(a)(v).

 

See the attached table titled
Shared Agreements.

 

See the attached spreadsheet
Fab Specific Purchase Orders.

 

See the attached spreadsheet
Fab Shared Purchase Orders.

 

 

Shared
Agreements

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Purchase Order No.

  NB08320117

  	
   

  	
  [...***...]

  

  Conexant

  	
   

  	
  6/14/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order No.

  NB18380874

  	
   

  	
  [...***...]

  

  Conexant Systems, Inc.

  	
   

  	
  8/23/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order No.

  NB88140005, Change Order

  #5

  

  Amendment No. 5 to Support

  Services Agreement No.

  NB88140005

  	
   

  	
  [...***...]

   

  (“Seller”)

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  11/5/98

  

  AM No. 5

  
1/23/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hazardous Waste

  Transportation and Disposal

  Agreement

  

  Purchase Order No.

  NB98140171,

  
Change Order # 5

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  12/1/99

  

  Purchase Order

  
12/1/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Technology License

  Agreement

  

  Amendment One to

  Technology License

  Agreement

  

  Amendment Two to

  Technology License

  Agreement

  
Supplemental Agreement

  	
   

  	
  [...***...]

   

  Rockwell International Corporation

  (“Rockwell”)

   

  [...***...] and Conexant

  Systems, Inc.

  	
   

  	
  3/25/96

  

  3/31/01

  
8/7/01

  
3/31/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order No.

  NB28610451

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  10/29/01

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Purchase Order No.

  MX28610453

  

  Support Solution Proposal

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer “)

  	
   

  	
  10/29/01

   

  Proposal 9/26/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order No.

  NB19610241

  	
   

  	
  [...***...]

   

  (“Seller”)  Conexant Systems, Inc. (“Buyer “)

  	
   

  	
  6/28/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conexant Systems, Inc.

  

  [...***...]

  
Blanket Construction Contract

  No. NB28390001

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  10/1/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  National Account Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  8/30/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mutual Non-Disclosure

  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  (“Customer”)

  	
   

  	
  4/22/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] and Conexant

  Systems, Inc. Travel

  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“the

  Corporation”)

  	
   

  	
  4/1/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Corporate Travel Agreement

  	
   

  	
  [...***...]

   

  Rockwell International Corporation and its
  subsidiaries and [...***...] and Conexant (“Customer”)

  	
   

  	
  6/12/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Corporate Purchasing Card

  Account Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Company”)

  	
   

  	
  7/1/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AccountingLink License Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Licensee”)

  	
   

  	
  7/24/01

  

 

 

	
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  Date

  
	
  EBR Information Agreement

  	
   

  	
  [...***...]

   

  Rockwell International Corporation

  (“the Corporation”)

  	
   

  	
  1/1/83

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Data Storage and Service

  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  3/1/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMBA Design Kit License

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Licensee”)

  	
   

  	
  12/7/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Limited Use License

  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Licensee”)

  	
   

  	
  9/3/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beta Test Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Participant”)

  	
   

  	
  7/12/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] MicroPack License

  

  Amendment One to

  

  [...***...] MicroPack License

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Licensee”)

  	
   

  	
  9/24/99

  

  1/7/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Peripherals License

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Licensee”)

  	
   

  	
  9/24/99

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Technology Develpoment and

  License Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  2/12/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notice Pursuant to Section 1.3

  of Technology Development

  License Agreement

  	
   

  	
   

  	
   

  	
  6/1/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Amendment to Technology

  Development and License

  Agreement

  	
   

  	
   

  	
   

  	
  6/12/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Master Licensing Agreement

  	
   

  	
   

  	
   

  	
  12/11/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Components End

  User License Agreement for

  [...***...] Processes

  	
   

  	
   

  	
   

  	
  12/27/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Components End

  User License Agreement for

  [...***...] Processes

  	
   

  	
   

  	
   

  	
  12/27/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Components End

  User License Agreement for

  [...***...] Processes

  	
   

  	
   

  	
   

  	
  12/27/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Components End

  User Single Site Maintenance

  and Support Addendum for

  [...***...] Processes

  	
   

  	
   

  	
   

  	
  12/27/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Components End

  User Single Site Maintenance

  and Support Addendum for

  [...***...] Processes

  	
   

  	
   

  	
   

  	
  12/27/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Addendum to License

  Agreement and Master

  Licensing Amendment

  Regarding New Products

  	
   

  	
   

  	
   

  	
  12/27/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Non-Disclosure Agreement

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems, Inc.

  	
   

  	
  1/22/98

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Purchase Order No.

  NB18600014, Change Order

  No. 5

  

  [...***...] Offer Letter

  (Attachment 4 to .P.O.)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  10/26/01

  

  

  Offer Letter 3/22/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] World Band Order

  Form

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems

  	
   

  	
  Not executed

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Contract Tariff Order

  Form

  	
   

  	
  [...***...]

   

  Rockwell International Systems

  	
   

  	
  1/22/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Transporation

  Agreement No. 9402-99

  	
   

  	
  [...***...]

   

  Rockwell (“Shipper”)

  	
   

  	
  12/1/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  No. NB18260034

  

  Purchase Order

  No. NB98320192

  

  Letter Agreement for Non-

  Renewal of Maintenance

  Contract

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  10/10/00

  

  9/10/99

  

  5/16/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Software License

  Agreement

  

  Purchase Order

  No. NB98090096

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  8/27/99

  

  

  1/7/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Amended and Restated Time-

  Based License Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  4/1/01

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Software License and Support

  Agreement

  

  Purchase Order

  No. NB98320200

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  9/17/99

  

  1/14/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  No. NB98060000

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems, Inc.

  	
   

  	
  10/2/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement

  

  

  Software License Agreement

  (Attachment A)

  
Purchase Order

  No. NB98320068

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  6/8/99

  

  

  6/8/99

  

  

  6/11/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement

  

  Software License Agreement

  (Attachment G)

  
Purchase Order

  No. NB98320028

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  5/27/99

  

  5/6/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Service and Maintenance

  Terms and Conditions

  

  Purchase Order

  No. NB08320027

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  12/14/99

  

  12/14/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Installment Payment

  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  (“Customer”)

  	
   

  	
  9/28/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beta Software License

  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“License”)

  	
   

  	
  1/11/02

  

 

 

	
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  Parties

  	
   

  	
  Date

  
	
  TAG Agreement – Phase 2

  No. 00-0TAG2-26

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Member”)

  	
   

  	
  4/1/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Standard Non-Disclosure

  Agreement No. 99SNDA0306

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  9/29/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Professional

  Services Agreement

  No. PSA/L-98ROCK0630

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems

  (“Customer”)

  	
   

  	
  6/30/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Installment Payment

  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  7/1/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Telecommute Addendum (Addendum to Software
  License Agreement dated 6/17/98)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Customer”)

  	
   

  	
  12/10/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Installment Payment Agreement (Attachment A to
  Flexible Access License Agreement dated 6./17/98)

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems, Inc.
  (“Licensee”)

  	
   

  	
  7/17/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Flexible Access License Agreement
  No. FALA-98ROCK0617 (as amended)

  

  

  

  

  

  

  

  

  

  

  

  [...***...] Letter regarding
  transfer of [...***...] Software from [...***...] to Conexant

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  

  Conexant Spinco, Inc.
  (“Spinco”)

  (as amended by Am. No. 2)

  	
   

  	
  6/17/98

  Am. No. 1 6/00

  

  Am. No. 2 12/21/00

  
Attach. E 7/1/00

  
Attach. F. 12/30/00

  
Attach. H. 9/28/01

  
Letter 6/28/00

  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  No. NB98320195

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  9/13/99

  

 

 

	
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  Parties

  	
   

  	
  Date

  
	
  Paid-Up Software License and Maintenance Agreement

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems, Inc.
  (“Licensee”)

  	
   

  	
  12/31/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Master Service Agreement

  

  

  Standard Non-Disclosure
  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  7/24/99

  

  

  7/7/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] License Agreement Terms and Conditions

  

  License Agreement Supplement
  (Exhibit A)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Customer”)

  	
   

  	
  5/31/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Object Code Software License Agreement

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems, Inc.
  (“Rockwell”

  or “Licensee”)

  	
   

  	
  9/16/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  No. NB18450213

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  12/4/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Statement of Work for Procurement Services

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Client”)

  	
   

  	
  6/13/01 (Engagement Start Date: 11/20/00)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  No. NB08320067

  	
   

  	
  [...***...]

   

  Conexant Spinco, Inc.

  	
   

  	
  3/10/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conexant Spinco, Inc. and [...***...] Price
  Protection Agreement (Exhibit 1 to Amendment No. 2 to the Price Protection
  Program Agreement)

  	
   

  	
  [...***...]

   

  Conexant Spinco, Inc.

  	
   

  	
  1/3/01

  

 

 

	
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  Parties

  	
   

  	
  Date

  
	
  Conexant Systems, Inc. and [...***...] Price
  Protection Program Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  8/1/99

  

  Am. No. 2 7/23/01 (Effective
  8/8/01)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conexant Systems, Inc. and [...***...] Price
  Protection Program, Amendment No. 3, Concurrent User Subscription Agreement

  

  [...***...] Addendum 1 for
  Rockwell International Corp.

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Shipper”)

  	
   

  	
  4/18/96

  

  

  

  Addendum 5/15/00 Supplement to
  Exhibit B 6/2/00 (Effective Date)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Corporate Sales Incentive Agreement

  	
   

  	
  [...***...]

   

  Rockwell International,

  [...***...], and Conexant (“Company”)

  	
   

  	
  6/15/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Guaranty

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Counterparty”)

  	
   

  	
  12/13/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Master Sale Agreement

  

  

  Confirmation Agreement
  (Exhibit 2 to Master Sale Agreement)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  1/1/02 (Effective Date)

  

  Confirmation 12/17/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Standby Letter of Credit

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Applicant”)

  	
   

  	
  12/20/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Master Power Purchase and Sale Agreement

  

  

  Confirmation Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  (“Conexant,” “Party A” or “Buyer”)

  	
   

  	
  12/14/01

  

  

  Confirmation 1/10/02

  

 

 

	
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  Date

  
	
  [...***...] Software License Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Licensee”)

  	
   

  	
  8/10/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Service Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  6/1/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Service Agreement

  

  Schedule No. 1, Schedule
  No. 2,

  Schedule No. 3

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  12/7/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Light Air Freight Agreement
  No. 9322-99

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Shipper”)

  	
   

  	
  7/1/99 (Effective Date)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  No. NB28390026

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  10/16/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Construction Contract No. NB28390003
  (Attachment No. 1)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  10/10/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  No. NB08260011

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  11/2/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Heavy Air Freight Agreement
  No. 9323-99

  

  

  Domestic Heavy Air Freight
  Addendum

  	
   

  	
  [...***...]

   

  Rockwell International Corporation

  (“Shipper”)

  	
   

  	
  7/1/99 (Effective Date)

  

  Addendum is not dated.

  

 

 

	
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  Parties

  	
   

  	
  Date

  
	
  Conexant Systems, Inc. [...***...] Blanket
  Construction Contract No. NB28390004 (Attachment No. 1)

  

  Purchase Order No.

  NB2830004

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  10/1/01

  

  

  

  Purchase Order 10/3/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  No. NB98320037

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  5/13/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Domestic Light Air Freight Agreement No. 9324-99

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Shipper”)

  	
   

  	
  7/1/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Household Goods Agreement for United States and
  Canada No. 8209-94 (as amended)

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Shipper”)

  	
   

  	
  2/26/94

  

  Am. No. 2 2/26/96

  
Am. No. 3 3/15/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  National Account Master Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  4/18/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Guard Service Agreement

  No. 360199

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Buyer”)

  	
   

  	
  12/20/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Client”)

  	
   

  	
  7/1/01

  

 

 

	
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  Parties

  	
   

  	
  Date

  
	
  Software License Agreement

  

  Addendum A

  
Purchase Order

  No. NB08320012

  
Purchase Order

  No. NB08261106

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  12/31/98

  

  12/31/98

  
10/29/99

  

  

  6/5/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  No. NB98320163

  

  Analytical Services

  Agreement

  

  Confidential Disclosure

  Agreement

  
Confidential Disclosure

  Agreement Supplement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  8/20/99

  

  

  11/9/99

  

  

  11/9/99

  

  

  11/15/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Prime Support Maintenance Agreement

  

  U.S. Perpetual Software
  Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  Undated

  

  12/13/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conexant Systems, Inc.

  [...***...] Blanket Construction Contract

  No. NB28390005

  (Attachment No. 1)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  10/1/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Master Lease Agreement

  

  

  Amendment

  

  Purchase Order

  No. NB08320026

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  12/9/99

  

  

  12/13/99

  
12/15/99

  

 

 

	
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  Parties

  	
   

  	
  Date

  
	
  Purchase Order

  No. NB08320070

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  3/23/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Records Management and

  Service Agreement

  No. 8418-95

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  1/31/99

  

  Schedule C 10/1/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Software License and

  Professional Services

  Agreement

  

  Purchase Order

  No. NB08320115

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  7/19/00  7/21/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Client Services Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Client”)

  	
   

  	
  11/1/00

  

  Amendment 1/11/01

  
Am No. 3 12/21/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conexant Systems, Inc.

  [...***...] Blanket Construction Contract

  No. NB28390006

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  10/1/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Master Lease

  Agreement

  

  Lease Schedule

  
Statement of Work

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  9/29/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  No. MX26050238

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  11/2/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Year 2000 Term License Addendum to Customer
  Agreement No. MA4363

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  (“Conexant”)

  	
   

  	
  6/29/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Engagement Letter No.

  EL031699, Revision 1

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  3/24/99

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Master Lease and License

  Agreement

  

  Software Schedule

  No. L00483032PCSI

  	
   

  	
  [...***...]

  

  

  [...***...]

  	
   

  	
  2/4/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Licensed Software Agreement

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems

  	
   

  	
  5/29/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Business

  Agreement, No. U8953548

  	
   

  	
  [...***...]

   

  Conexant

  	
   

  	
  9/17/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Select Agreement,

  No. U8953548

  	
   

  	
  [...***...]

   

  Conexant

  	
   

  	
  9/17/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conexant Rates with [...***...]

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net 2000 Communications

  Maintenance Renewal Rates

  	
   

  	
  [...***...]

  	
   

  	
  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Letter [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  11/6/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Heavy Air

  Freight Agreement

  No. 9325-99

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Shipper”)

  	
   

  	
  8/1/99

  (Effective Date)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] End User Software

  License Agreement

  

  Purchase Order

  No. NB08320116

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  7/21/00

  

  7/21/00

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Purchase Order

  No. NB98320067

  

  Software License and Services

  Agreement & Amendment

  No. 1

  
Payment Plan Agreement

  
Payment Schedule and

  Amendment No. 1

  
Assignment Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  

  

  

  

  

  

  

  

  Rockwell International
  Corporation

  
Conexant Systems, Inc.

  	
   

  	
  6/8/99

  

  5/28/99

  

  

  

  

  

  

  

  

  5/28/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  No. NB18560191

  

  Purchase Order

  No. NB163286

  	
   

  	
  [...***...]

  

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  P.O. No. NB18560191 11/1/00

  

  P.O. No. NB16328691
  4/17/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement

  No. 163286

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Buyer”)

  	
   

  	
  7/11/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Express Agreement for Services

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Customer”)

  	
   

  	
  7/9/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Express Agreement for Services

  	
   

  	
  [...***...]

   

  Coxenant Systems, Inc. (“Customer”)

  	
   

  	
  8/24/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Select Payphone Service Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  10/18/00

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Conexant Systems, Inc.

  [...***...]

  Blanket Construction Contract

  No. NB28390007

  (Attachment No. 1)

  

  Purchase Order No.

  NB28390007

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  10/1/01

  

  

  Purchase Order 10/3/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conexant Systems, Inc.

  [...***...]

  Blanket Construction Contract

  

  NO.NB28390008

  (Attachment No. 1)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  (“Conexant”)

  	
   

  	
  10/1/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  

  Employee Relocation Management
  Services Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  (“Company”)

  	
   

  	
  4/30/99

  

  Second Amendment 1/8/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electricity Services Contract

  (California) (as amended)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  6/29/01 (Effective Date)

  

  Amendment 10/2/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Services and Software License Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  12/23/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bill Management Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Client”)

  	
   

  	
  Unspecified

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  License Agreement for

  [...***...] Licensed Products

  

  Schedule 1, Schedule 11

  
License Agreement for Promis

  Licensed Products, No. 8204

  
Schedule 1, Schedule 11

  
Amendment No. 1 to Master

  Agreement No. 7610

  	
   

  	
  [...***...]

   

  Rockwell International Corp.

   

   

   

   

   

   

   

  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  7/18/88

  

  

  

  

  

  

  

  3/26/96

  
9/20/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  Software License and Support Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  (“Customer”)

  	
   

  	
  12/22/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order #NB28660138

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  12/17/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order #NB18660033

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  6/25/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order 950119

  

  Letters

  	
   

  	
  Rockwell International

   

  [...***...]

  	
   

  	
  9/2/94

  

  2/21/89, 10/28/94, 11/23/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Designware Supplement

  	
   

  	
  Rockwell International Corporation

  (“Licensee”)

   

  [...***...]

  	
   

  	
  3/27/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  Software License Agreement,

  as amended

  

  Purchase Order #NB08320050

  
Flysheet SLA Form

  (Attachment A)

  	
   

  	
  [...***...]

   

  Conexant Systems, Corporation (“Licensee”)

  	
   

  	
  8/18/00

  

  

  

  

  

  2/8/00

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Administrative Services Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Client”)

  	
   

  	
  6/7/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Software End-User

  License Agreement

  

  

  Appendix 1

  
Amendment 1 to Appendix

  
Amendment 2 to Appendix

  
Appendix 9 to the [...***...]

  Software End-User License Agreement

  
[...***...] Software End-User License
  Agreement

  	
   

  	
  [...***...]

   

   

  Conexant Systems, Inc.

   

   

   

   

   

   

   

   

   

  [...***...]

  Rockwell International Corp.

  	
   

  	
  3/31/00

  

  

  

  

  3/31/00

  
4/28/00

  
11/20/00

  
3/31/00

  

  
6/30/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conexant Systems, Inc.

  [...***...]

  Blanket Construction Contract

  No.NB28390010

  (Attachment No. 1)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  10/1/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order #NB18610169

  

  

  

  

  

  Agreement No. WC-0424,

  Attachment A

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  

  (Agreement No. WC-0424, Attach
  A is in the name of [...***...]

  	
   

  	
  5/23/01

  

  

  

  

  

  Agreement WC-0424, Attach. A
  5/1/01 (Effective Date)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order #NB

  18200397

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  2/16/01

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Corporate Account Agreement

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems, Inc.

  	
   

  	
  8/28/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order #NB98320217

  

  Total Coverage Plan Standard
  Coverage Maintenance Contract

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  9/30/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Custom Service Agreement No.
  BSG0009-085R6

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  1/30/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB186600049

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  7/25/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equipment Maintenance and Service Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  9/11/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Furniture Agreement

  

  

  

  [...***...] Design Partnership/
  Conexant Systems, Inc. Addendum

  	
   

  	
  [...***...]

  

  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  10/10/01

  

  

  Addendum 10/15/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  

  Terms of Sales and Service

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  (“Customer”)

  	
   

  	
  3/23/00

  

  Am. No. 1 3/23/00

  
Direct Passport Exhibit 10/11/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Product Module

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Customer”)

  	
   

  	
  3/23/00

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  [...***...] Support Program Module

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  (“Customer”)

  	
   

  	
  3/23/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Professional Services Program Module

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  (“Customer”)

  	
   

  	
  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  End User Software License Agreement No.
  EUL98-70005880

  

  Continental Wide-Area Network
  (WAN) Supplement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Licensee”)

  	
   

  	
  1/1/99

  (Effective Date)

  

  Supplement 6/27/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DW8051 MarcoCell

  Supplement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Licensee”)

  	
   

  	
  1/1/99

  (Effective Date)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assignment of Purchase Order No. 264353 Letter
  Agreement

  	
   

  	
  [...***...]

   

  Rockwell International, Inc.

  

  Conexant Systems, Inc.

  	
   

  	
  2/23/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Licensee”)

  	
   

  	
  1/1/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Letter Agreement for Assignment of Software
  Licenses & Support

  

  (assignment from Rockwell to
  Conexant, consented to by [...***...])

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  

  Rockwell International, Inc.

  	
   

  	
  Executed by Synopsys on 2/24/99

  

  Executed by Conexant on 7/2/99

  
Executed by Rockwell on 7/1/99

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Purchase Order #264353

  

  Time Based Supplement

  
Supplement No.2

  
Supplement No.3

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems

  

  [...***...]

  	
   

  	
  6/28/96

  

  6/28/96

  
3/21/97

  
6/19/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  End User Software License Agreement

  

  Amendment No. 1

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems, Inc.

  	
   

  	
  1/4/95

  

  5/8/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Non-Disclosure Agreement

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems, Inc.

  	
   

  	
  one copy not executed; one copy only executed by
  Rockwell on 5/20/98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Volume Purchase Agreement No. VPA – 70005880 (as
  amended)

  

  Continental Wide-Area Network
  (WASN) Supplement (Exhibit E)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  6/27/00

  

  Am. No. 1

  7/24/00

  
Am. No. 3

  1/30/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dealer Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  9/10/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB18610320, Change Order #4

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  9/25/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order #NB18610314

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  11/29/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement

  (Attachment 1 to P.O.

  #NB8370025 dated 11/3/99)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  11/3/99

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Purchase Order #NB0837025

  (Chanage #004)

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  11/3/99

  (change date is 9/6/01)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Corporate Account Agreement

  	
   

  	
  [...***...]

   

  Rockwell International Corporation with
  applicability to Rockwell International Corporation, Conexant Systems, Inc.,
  and [...***...] (“the Company”)

  	
   

  	
  Effective 7/1/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Worldwide Liability Protection Override Agreement
  (Rider to Corporate Account Agreement with [...***...])

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (the “Company”)

  	
   

  	
  7/1/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Software License Agreement

  

  Application Deployment
  Addendum

  	
   

  	
  [...***...]

   

  Licensee

  	
   

  	
  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Agreement

  

  License Agreement

  
Management and Support

  Agreement

  
Consulting Service Agreement

  
Purchase Order #NB98320190

  
Addendum

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  8/26/99

  

  

  

  

  

  

  

  

  8/25/99

  

  9/28/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order #NB18190369

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  4/5/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order

  #NB98060057, Change Order #9

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  10/31/01

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Water Treatment Program Agreement

  

  Purchase Order #NP08141009

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  12/15/99

  

  4/1/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Domestic Ground and Air Freight Agreement No.
  9327-99

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Shipper”)

  	
   

  	
  8/9/99

  (Effective Date)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land-Based Transportation Contract Carrier
  Agreement

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Shipper”)

  	
   

  	
  4/1/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land-Based Transportation Contract Carrier
  Agreement

  

  Supplement to Exhibit B

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Shipper”)

  	
   

  	
  4/1/99

  

  

  Supplement 6/2/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  West Area Major Account Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  11/12/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  License Order and End-User Software License and
  Maintenance Agreement

  

  Purchase Order #NB08320074

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  2/11/00

  

  3/24/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Customer Pricing Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems

  	
   

  	
  12/3/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Confirmation of Participation in Installment
  Licensing Program

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  8/18/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order
 #NB186600092

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  9/12/01

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Support Services Agreement

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Buyer”)

  	
   

  	
  4/2/93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Corporate Travel Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Conexant”)

  	
   

  	
  7/10/00

  

  Am No. 1 1/2/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Installation, Network

  Operations, Support and

  Maintenance Agreement

  

  Amendment to Installation,

  Network Operations, Support

  and Maintenance Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Customer”)

  	
   

  	
  5/1/01

  

  5/1/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Service Order Agreement

  

  

  National Master Communications
  Service Agreement (not executed)

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Shipper”)

  	
   

  	
  10/17/00

  

  

  10/31/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land-Based Transportation Contract Carrier
  Agreement No. 9446-99

  

  Letter by [...***...]

  
Fuel Surcharge Addendum

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Shipper”)

  	
   

  	
  4/15/99

  

  Letter 5/11/00

  
Fuel Surcharge Addendum 5/15/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Product License Agreement

  

  Amendment No. 1

  	
   

  	
  [...***...]

   

  Rockwell Semiconductors Systems, Inc.

  	
   

  	
  3/30/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Global License Program Foundation Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  3/21/00

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Software License Agreement

  

  Purchase Order #NB98060085

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  9/24/01

  

  12/19/98

  

 

 

Fab Specific

Purchase Orders

 

	
  Verified

  	
   

  	
   

  	
  F

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PO

  	
   

  	
   

  	
  (All)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LI

  	
   

  	
   

  	
  (All)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Buyer Name

  	
   

  	
   

  	
  (All)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cost ctr

  	
   

  	
   

  	
  (All)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Supplier Name

  	
   

  	
  Line Item Description

  	
   

  	
  Cost ctr function

  	
   

  	
  PO Date

  	
   

  	
  Original Order $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***... 33 pages omitted]

  

 

 

Fab Shared

Purchase Orders

 

 

	
  Verified

  	
   

  	
   

  	
  S

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PO

  	
   

  	
   

  	
  (All)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LI

  	
   

  	
   

  	
  (All)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Buyer Name

  	
   

  	
   

  	
  (All)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cost ctr

  	
   

  	
   

  	
  (All)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Supplier Name

  	
   

  	
  Line Item Description

  	
   

  	
  Cost ctr function

  	
   

  	
  PO Date

  	
   

  	
  Original Order $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***... 10
  pages omitted]

  

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.4(b)

 

CONTRACTS SOLELY FOR COMPANY REQUIRING
CONSENT FOR TRANSFER

 

See Schedule
1.1(a)(v).(1)

 

(1) All Fab Specific contracts
require consent in order to be transferred to the Company.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.4(c)

 

SHARED CONTRACTS

 

See Shared
Agreements Table in Part 2.4(a) of the Conexant Disclosure Schedule.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.4(e)

 

BREACHES

 

None.

 

 

SCHEDULE 2.5(a)

 

PATENTS, APPLICATIONS AND DISCLOSURES
LICENSED TO COMPANY

 

	
  Docket Number

  	
   

  	
  Serial/Patent #

  	
   

  	
  Title

  	
   

  	
  Inventor(s)

  	
   

  	
  Filing Date

  
	
  00CXT0290T

  	
   

  	
  09/797,307

  	
   

  	
  Improved Transformer Comprising Stacked Inductors

  	
   

  	
  Siamak Fazelpour

  	
   

  	
  3/1/2001

  
	
  00CXT0313T

  	
   

  	
  09/668,790

  	
   

  	
  Method for Increasing Inductance of On-Chip Inductors and Related
  Structure

  	
   

  	
  David Howard; QZ Liu

  	
   

  	
  9/22/2000

  
	
  00CXT0335T

  	
   

  	
  09/779,402

  	
   

  	
  On-chip Transformers

  	
   

  	
  David Howard; QZ Liu

  	
   

  	
  2/8/2001

  
	
  00CXT0379T

  	
   

  	
  09/667,364

  	
   

  	
  Diode with Variable Width Metal Stripes for Improved Protection
  Against Electrostatic Discharge (ESD) Current Failure

  	
   

  	
  Eugene R. Worley; Matloubian, Mishel

  	
   

  	
  9/21/2000

  
	
  01CXT0240T

  	
   

  	
  09/879,142

  	
   

  	
  Method and Systems for Predictive MOSFET Layout Generation with Reduced
  Design Cycle

  	
   

  	
  Lampaert, Koen; Matloubian, Mishel; Miliozzi, Paolo; Bhattacharyya,
  Bijan K; Brotman, Andy; Singh, Paramjit

  	
   

  	
  6/12/2001

  
	
  01CXT0241T

  	
   

  	
  TBD

  	
   

  	
  Method and Systems for Multi-Component Circuit Layout Generation with
  Reduced Design Cycle

  	
   

  	
  Lampaert, Koen; Matloubian, Mishel; Miliozzi, Paolo; Bhattacharyya,
  Bijan K; Brotman, Andy; Singh, Paramjit

  	
   

  	
  10/24/2001

  
	
  01CXT0242T

  	
   

  	
  09/941,883

  	
   

  	
  Method and Systems for Predictive Inductor Layout Generation with
  Reduced Design Cycle

  	
   

  	
  Lampaert, Koen; Matloubian, Mishel; Miliozzi, Paolo; Bhattacharyya,
  Bijan K; Brotman, Andy; Singh, Paramjit

  	
   

  	
  8/28/2001

  
	
  01CXT0341T

  	
   

  	
   

  	
   

  	
  High Performance BiFET Low Noise Amplifier

  	
   

  	
  Pingxi Ma; Marco Racanelli

  	
   

  	
   

  
	
  78E035/1

  	
   

  	
  4406049

  	
   

  	
  Very High Density Cells Comprising a ROM & Method of Manufacturing
  Same

  	
   

  	
   

  	
   

  	
   

  
	
  79E039/1

  	
   

  	
  4419808

  	
   

  	
  ROM W/Redundant ROM Cells Employing a Highly Resistive Polysilicon
  Film f/Programming the Cells

  	
   

  	
  Custode, F Z

  	
   

  	
   

  
	
  80E006/10

  	
   

  	
  5027184

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  
	
  80E006/12

  	
   

  	
  5031014

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  
	
  80E006/13

  	
   

  	
  5097316

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  
	
  80E006/24

  	
   

  	
  4506283

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  
	
  80E006/25

  	
   

  	
  4497685

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  
	
  80E006/3

  	
   

  	
  5043787

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  
	
  80E006/31

  	
   

  	
  5047828

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  
	
  80E006/33

  	
   

  	
  5025302

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  

 

 

	
  Docket Number

  	
   

  	
  Serial/Patent #

  	
   

  	
  Title

  	
   

  	
  Inventor(s)

  	
   

  	
  Filing Date

  
	
  80E006/36

  	
   

  	
  4522682

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  
	
  80E006/5

  	
   

  	
  4419150

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  
	
  80E006/7

  	
   

  	
  4611387

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  
	
  80E006/8

  	
   

  	
  4485551

  	
   

  	
  Lateral NPN Transistor & Method

  	
   

  	
  S I Soclof

  	
   

  	
   

  
	
  80E120/

  	
   

  	
  4549100

  	
   

  	
  MOS Voltage Comparator and Method

  	
   

  	
   

  	
   

  	
   

  
	
  81E057/

  	
   

  	
  4432134

  	
   

  	
  Process for In-Situ Formation of Nioblum-Insulator Niobium Josephson
  Tunnel Junction Devices

  	
   

  	
   

  	
   

  	
   

  
	
  82E013/1

  	
   

  	
  4593453

  	
   

  	
  Two-Level Transistor Structures & Method Utilizing Minimal Area
  Therefor

  	
   

  	
   

  	
   

  	
   

  
	
  86E065/

  	
   

  	
  5017811

  	
   

  	
  CMOS TTL Input Buffer Using a Ratioed Inverter w/ a Threshold Voltage
  Adj. N Channel Field Eff. Tran

  	
   

  	
   

  	
   

  	
   

  
	
  93E052

  	
   

  	
  5440162

  	
   

  	
  ESD Protection for Submicron CMOS Circuits

  	
   

  	
  Jones, Addison B; Jones, B J; Gupta, Rajiv; Worley, Eugene

  	
   

  	
  7/26/1994

  
	
  93E052/

  	
   

  	
  5440162

  	
   

  	
  ESD Protection for Submicron CMOS Circuits

  	
   

  	
   

  	
   

  	
   

  
	
  93E052

  	
   

  	
  5654862

  	
   

  	
  Method and Apparatus for Coupling Multiple Independent On-Chip Vdd
  Busses to an ESD Core Clamp

  	
   

  	
  Worley, Eugene; Nguyen, C.; Kjar, Ray; Tennyson, Mark

  	
   

  	
  10/18/1996

  
	
  98RS266

  	
   

  	
  09/738,127

  	
   

  	
  Electrostatic Discharge Protection Circuit

  	
   

  	
  Larry Li

  	
   

  	
  12/15/2000

  
	
  99RSS098

  	
   

  	
  09/672,165

  	
   

  	
  Fully Synthesisable and Highly Area Efficient Very Large Scale
  Integration (VLSI) Electrostatic Discharge (ESD) Protection Circuit

  	
   

  	
  Worley, Eugene R; Mark R Tennyson; Xiaoming LI

  	
   

  	
  9/27/2000

  
	
  99RSS143

  	
   

  	
  09/519,214

  	
   

  	
  Electrostatis Discharge Protection

  	
   

  	
  Eugene R Worley

  	
   

  	
  3/6/2000

  
	
  99RSS152

  	
   

  	
  09/667,363

  	
   

  	
  High Voltage Tolerant Electrostatic Discharge (ESD) Bus Clamp

  	
   

  	
  Eugene R. Worley

  	
   

  	
  9/21/2000

  
	
  99RSS214

  	
   

  	
  09/502,418

  	
   

  	
  Vertical MIM  (Conductor/Insulator/conductor)
  Capacitor (Vertical to the Wafer Surface)

  	
   

  	
  Phil N Sherman; Zhe Zhang

  	
   

  	
  2/10/2000

  
	
  99RSS482

  	
   

  	
  09/863,089

  	
   

  	
  High Density Metal Insulator Metal Capacitors

  	
   

  	
  Arjun KarRoy; Klaus Schuegraf

  	
   

  	
  5/22/2001

  

 

 

SCHEDULE 2.5(e)

 

IP OUT-LICENSES

 

International Business Machines Corporation
and Conexant Systems, Inc.

Patent Cross-License Agreement

June 25, 1999

 

Sharp Corporation and Conexant Systems, Inc.

Joint Development and License Agreement

June 27, 1999

 

Sharp Corporation and Conexant Systems, Inc.

Joint Development and License Agreement

January 10, 2000

 

Sharp Corporation and Conexant Systems, Inc.

Master Technology License Agreement

August 24, 2000

 

Taiwan Semiconductor Manufacturing Company
and Conexant Systems, Inc.

License and Supply Agreement

January 10, 2001

 

Lucent Technologies GRL Corporation and
Conexant Systems, Inc.

Patent License Agreement

October 1, 1999

 

With respect to United States Patent
Application Serial No. 09/002,326, Sematech members will be licensed under the
ensuing patent (if granted) pursuant to the Amended and Restated

Sematech, Inc. Participation Agreement

Sematech, Inc. and Conexant Systems, Inc.

Amended and Restated Sematech, Inc.
Participation Agreement

March 17, 1999

 

 

SCHEDULE 2.5(f)

 

IP IN-LICENSES

 

International Business Machines Corporation
and Conexant Systems, Inc.

Patent Cross-License Agreement

June 25, 1999

 

Sharp Corporation and Conexant Systems, Inc.

Joint Development and License Agreement

June 27, 1999

 

Sharp Corporation and Conexant Systems, Inc.

Joint Development and License Agreement

January 10, 2000

 

Sharp Corporation and Conexant Systems, Inc.

Master Technology License Agreement

August 24, 2000

 

Lucent Technologies GRL Corporation and
Conexant Systems, Inc.

Patent License Agreement

October 1, 1999

 

Lemelson Medical, Education and Research
Foundation and Conexant Systems, Inc.

Patent License Agreement

December 31, 1999

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.5(g)

 

SOFTWARE LICENSES

 

	
  Supplier

  	
   

  	
  Product or Service

  	
   

  	
  Contract Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***... 3 pages omitted]

  

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.5(i)

 

NOTICES OF INFRINGEMENT

 

On January 7, 2002, the Syndia
Corporation notified Conexant of patent infringement with regard to two patents
held by Syndia.

 

Plasma Physics sent Conexant a letter on
July 11, 2001, requesting that Conexant obtain a license to certain
patents.

 

 

SCHEDULE 2.6(a)(i)

 

COLLECTIVE BARGAINING UNIT EMPLOYEES

 

	
   

  	
   

  	
  [...***... 6 pages omitted]

  	
   

  	
   

  

 

 

Conexant Disclosure Schedule Part 2.6(a)(i)

 

Non-Collective Bargaining Unit Employees

 

	
   

  	
   

  	
  [...***... 7 pages omitted]

  	
   

  	
   

  

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.6(a)(ii)

 

LABOR MATTERS

 

	
  Labor Agreements

  	
   

  	
  Coverage Dates

  	
   

  	
  Covered Employees

  
	
  Agreement between Conexant and IBEW Local Union 2295

  	
   

  	
  Effective May 1, 1998 through April 30, 2003.

  	
   

  	
  Covers all production and maintenance employees at the Newport Beach
  facility.

  

 

There are:

 

No threatened
work stoppages.

 

No attempts to
organize the employees, other than the above listed agreement.

 

No known
violations of labor laws or agreements.

 

No employees
known to be in violation of contracts or agreements to which Conexant is a
party.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.6(b)

 

EMPLOYEE BENEFIT PLANS

 

	
  Benefit Category for 2002

  	
   

  	
  Salaried Employees in California

  	
   

  	
  Bargaining Unit Employees

  
	
  Medical Plans

  	
   

  	
  Blue Shield PPO

  Blue Shield HMO
HealthNet HMO

  	
   

  	
  Blue Shield POS

  PacifiCare HMO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dental Plan

  	
   

  	
  Aetna

  	
   

  	
  Delta Premier

  Delta PMI (like an HMO)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vision Plan

  	
   

  	
  VSP

  	
   

  	
  VSP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Basic Life Insurance (company-paid)

  	
   

  	
  2 times base salary

  	
   

  	
  2 times base salary, minimum $40K benefit

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AD&D Insurance (company-paid)

  	
   

  	
  1 times base salary

  	
   

  	
  2 times base salary, minimum $40K benefit

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Optional life insurance (employee-paid)

  	
   

  	
  1 to 5 times base salary

  	
   

  	
  1 to 5 times base salary

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Optional dependent life insurance (employee-paid)

  	
   

  	
  Various levels available

  	
   

  	
  Various levels available

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Short-term disability

  	
   

  	
  • California
  SDI premium paid by employees

  • Company pays
  100% base salary (less SDI) of 1 week per year of service, min. 4 weeks, max.
  26 - Balance of 26 weeks paid
  at 66.7% pay (less SDI) Benefits
  continue

  	
   

  	
  • California
  SDI premium paid by company

  • No company
  pay during leave of absence

  • Benefits
  continue for duration of leave, up to 1 year maximum

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-Term Disability

  	
   

  	
  • Company-paid
  basic benefit of 60% base salary, max, monthly benefit of $7,500

  • Optional
  additional coverage (employee-paid) provides combined total of 66.7% base
  salary, max. monthly benefit of $20,000

  • Medical
  coverage continues for total of 29 months from start of leave.

  	
   

  	
  • Optional
  only; employee pays most of cost. Provides 60% of base salary

  • Medical
  coverage continues to age 65

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee Stock Purchase Plan

  	
   

  	
  Eligible to participate

  	
   

  	
  Eligible to participate

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  401k Savings Plan

  	
   

  	
  100% company match on first 4% contributed; immediate match
  participation and immediately 100% vested

  	
   

  	
  Company match up to max. of $650 in 2002; match starts after 1 year
  of employment; 5 year vesting

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pension Plan and Retiree Medical/Life

  	
   

  	
  Not available

  	
   

  	
  Pension Plan ($per year of service) and $10K life insurance. Must
  retire from active service to get retiree medical

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Paid sick/personal days off

  	
   

  	
  Salaried non-exempt get 40 hours per year; exempt no set limit

  	
   

  	
  40 hours per year

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24 Hour Fitness discount memberships

  	
   

  	
  Eligible to participate

  	
   

  	
  Eligible to participate

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee Assistance Program  (EAP)

  	
   

  	
  Available

  	
   

  	
  Available

  

 

 

	
  Benefit Category for 2002

  	
   

  	
  Salaried Employees in California

  	
   

  	
  Bargaining Unit Employees

  
	
  Child Care and Elder Care Resource * Referral Services

  	
   

  	
  Available

  	
   

  	
  Available

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Educational Reimbursement

  	
   

  	
  $7,500 per year for tuition, books and fees

  	
   

  	
  $7,500 per year for tuition, books and fees

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Paid holidays per year

  	
   

  	
  14

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vacation

  	
   

  	
  New hire to 2 years = 10 days

  2.1 years to 4 years = 13 days

  4.1 years to 9 years = 15 days

  9.1 years to 13 years = 18 days

  13.1 years or more = 20 days

  	
   

  	
  1 through 4 years = 2 weeks

  5 through 14 years = 3 weeks

  15 through 19 years = 4 weeks

  20 or more years = 5 years

  

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.7

 

COMPLIANCE WITH LEGAL REQUIREMENTS

 

See part 2.9
of this Disclosure Schedule, items 2 and 3.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.8(a)

 

PERMITS HELD

 

PERMITS HELD

 

	
  Issuing
  Agency

  	
   

  	
  Comments

  	
   

  	
  Permit
  or

  Registration

  Number (if

  applicable)

  	
   

  	
  Description

  	
   

  	
  Expiration
  /

  Renewal

  Date

  	
   

  	
  Transfer

  Requirements

  TENTATIVE

  02/04/2002

  
	
  South Coast Air Quality Management District

  	
   

  	
  Provided in Phase 1 ESA issued 8/6/2001

  	
   

  	
  800210

  	
   

  	
  Air permit for all manufacturing equipment,
  pollution control devices and all support equipment

  	
   

  	
  Annually, July

  	
   

  	
  File Applications for each permit group
  (15) pay fees ($10,000), transfer NOx credits. Agency stated new company has
  1 year to file change of owner. Once forms are submitted new company is
  protected. Need TAX ID number to file. No expected change of conditions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  South Coast Air Quality Management District

  	
   

  	
  New Information 1/28/2002

  	
   

  	
  4712

  	
   

  	
  RTC Transfer Confirmation: RECLAIM Emission
  credit transfer from seller to Conexant Systems Inc.

  	
   

  	
  12/31/2002

  	
   

  	
  See above

  

 

 

	
  Issuing
  Agency

  	
   

  	
  Comments

  	
   

  	
  Permit
  or

  Registration

  Number (if

  applicable)

  	
   

  	
  Description

  	
   

  	
  Expiration
  /

  Renewal

  Date

  	
   

  	
  Transfer

  Requirements

  TENTATIVE

  02/04/2002

  
	
  Newport Beach Fire Department

  	
   

  	
  Provided to IT on 1/8/02

  	
   

  	
  NA

  	
   

  	
  Hazardous materials inventory and Business
  Emergency Plan

  	
   

  	
  Annually, March

  	
   

  	
  Letter notifying of change

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Orange County Sanitation District

  	
   

  	
  Provided 1/11/02

  	
   

  	
  7-1-140

  	
   

  	
  Facility industrial wastewater discharge
  permit

  	
   

  	
  April 30, 2002

  	
   

  	
  Letter notifying of change. Will have to
  file for new WW permit. No expected change of conditions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  California EPA

  	
   

  	
   

  	
   

  	
  CAD008371 437

  	
   

  	
  US EPA Hazardous Waste Generator ID for
  Site at 4311 Jamboree Road

  	
   

  	
   

  	
   

  	
  Letter to State. Notification only.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cal EPA – Dept. of Toxic Substances Control

  	
   

  	
  Available on request

  	
   

  	
  NA

  	
   

  	
  Hazardous Waste Source Reduction Plan

  	
   

  	
  Sept., 2003

  	
   

  	
  Letter notifying of change

  

 

 

	
  Issuing
  Agency

  	
   

  	
  Comments

  	
   

  	
  Permit
  or

  Registration

  Number (if

  applicable)

  	
   

  	
  Description

  	
   

  	
  Expiration
  /

  Renewal

  Date

  	
   

  	
  Transfer

  Requirements

  TENTATIVE

  02/04/2002

  
	
  Orange County Health Care Agency (CUPA)

  	
   

  	
  Provided 1/11/02

  	
   

  	
  ID#

  	
   

  	
  Under Notice of Intent to treat industrial
  wastewater under a General Permit governed by the Tiered Permit program. UST
  and hazardous waste. Risk Management Plan Registration

  	
   

  	
  Upon System Modification. Annual Review

  	
   

  	
  Letter notifying of change. New Financial
  assurance and closure plan. No new conditions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  California EPA – State Water Resources
  Control Board

  	
   

  	
  Provided 1/11/02

  	
   

  	
  8-305015344

  	
   

  	
  Stormwater permit under the EPA’s General
  Permit Program

  	
   

  	
  Annual, July

  	
   

  	
  Notification

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CalOSHA

  	
   

  	
  Available on request

  	
   

  	
  NA

  	
   

  	
  Carcinogen Use Registration Notification to
  CalOSHA indicating usage of arsenic on site.

  	
   

  	
  none

  	
   

  	
  Will need name change only.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cal OSHA

  	
   

  	
  Available on request

  	
   

  	
  75325,

  75324,

  37408,

  37409

  	
   

  	
  Registration for pressure vessels

  	
   

  	
  5 Year permits – 2 are due this year.

  	
   

  	
  Will need name change only.

  

 

 

	
  Issuing
  Agency

  	
   

  	
  Comments

  	
   

  	
  Permit
  or

  Registration

  Number (if

  applicable)

  	
   

  	
  Description

  	
   

  	
  Expiration
  /

  Renewal

  Date

  	
   

  	
  Transfer

  Requirements

  TENTATIVE

  02/04/2002

  
	
  California Dept. of Health Services,
  Radiologic Health Branch

  	
   

  	
  Available on request

  	
   

  	
  027390

  	
   

  	
  Radiation Machine Registration Registration
  of devices utilizing x-rays or capable of producing incidental x-rays
  (electron microscopes, ion implanters, etc.).

  	
   

  	
  none

  	
   

  	
  Will need name and taxpayer ID change only.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U S. Environmental Protection Agency

  	
   

  	
  Available on request

  	
   

  	
  92658RCK WL4311J

  	
   

  	
  Annual SARA 313 (Form “R”) report.

  	
   

  	
  Annual

  	
   

  	
  Letter notifying of change

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Spill Prevention Control and Countermeasure
  Plan

  	
   

  	
  Available on request

  	
   

  	
  NA

  	
   

  	
  Spill response plan for diesel fuel tanks
  on Emergency Generators

  	
   

  	
  5/18/2004

  	
   

  	
  Letter notifying of change

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  State Board of Equalization

  	
   

  	
  Provided 1/11/02

  	
   

  	
  HYEF- 36058362

  	
   

  	
  Hazardous waste disposal tax fee

  	
   

  	
  none

  	
   

  	
  Conexant will keep the registration for San
  Diego and Newbury Park. Company will need to obtain new registration.

  

 

 

	
  Issuing
  Agency

  	
   

  	
  Comments

  	
   

  	
  Permit
  or

  Registration

  Number (if

  applicable)

  	
   

  	
  Description

  	
   

  	
  Expiration
  /

  Renewal

  Date

  	
   

  	
  Transfer

  Requirements

  TENTATIVE

  02/04/2002

  
	
  United States Department of Transportation

  	
   

  	
  Provided 1/11/02

  	
   

  	
  0711000070 0-9IK

  	
   

  	
  Site hazardous materials registration for
  the shipment of containers previously containing hazardous materials

  	
   

  	
  June 30,2003

  	
   

  	
  Conexant will keep the registration for San
  Diego and Newbury Park. Company will need to obtain new registration.

  

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.8(b)

 

PERMIT VIOLATIONS

 

None.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.8(c)

 

PERMITS NECESSARY

 

The Orange County Sanitation District will
require that a new Industrial Waste Water (“IWW”) permit be issued as a part of
the change of owner process that is taking place. When the Sanitation District
issues a new IWW permit, the existing grandfathered flow baseline will be reset
to 25,000 gallons per day. Conexant’s current baseline is 1.7 million gallons
per day. This change will result in additional quarterly fees being charged to
the new permit holder. Details of the new fee structure can be found in Orange
County Sanitation District Ordinance NO. OCSD-15.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.9

 

ENVIRONMENTAL ISSUES

 

1.                                      Conexant
has provided Carlyle with a true and complete copy of that certain environmental
report entitled “Phase 1 Environmental Site Assessment” prepared by Clayton
Group Services, Inc. dated August 6, 2001 (“Phase
I Report”), which reflects that certain levels of Hazardous
Materials exist in the groundwater and soil underlying the physical facilities
in which Conexant conducts wafer fabrication operations since the date of the
Phase I Report, Conexant does not know whether the levels of Hazardous
Materials reflected in the Phase I Report are accurate as of the date hereof.

 

2.                                      On
June 29, 2001, Conexant received a Notice of Determination from the United
States Environmental Protection Agency (“EPA”)
concerning violations of the Emergency Planning and Community Right to Know
Act, 42 U.S.C. sec. 11001 et seq. This notice served as final settlement
between Conexant and the EPA for reporting errors that were disclosed under the
National Nitrate Enforcement Initiative on October 3, 2000. The Initiative
provided for the opportunity to audit and correct past reporting errors. The
reporting errors corrected are summarized in the table below.

 

	
  Failure to Report

  	
   

  	
  Catechol (000120809)

  	
   

  	
  1996, 1997, 1998

  
	
  Failure to Report

  	
   

  	
  Nitrate Compounds (N511)

  	
   

  	
  1996, 1997, 1998

  
	
  Inaccurate Submittal

  	
   

  	
  Hydrogen Fluoride (007664393)

  	
   

  	
  1996, 1997, 1998

  
	
  Inaccurate Submittal

  	
   

  	
  Nitric Acid (007697372)

  	
   

  	
  1996, 1997, 1998

  

 

3.                                      Conexant
received verbal notification from the South Coast Air Quality Management
District (“AQMD”) that the application for a Change of Name from Rockwell
Semiconductor Systems Inc. to Conexant, completed in January 1999 by Conexant,
should have been an application for a Change of Owner. On December 9, 1998
Conexant provided the AQMD with paperwork that specially stated that this event
was a change of name event.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.10

 

GOVERNMENT ORDERS OF PROCEEDINGS AFFECTING
OPERATIONS

 

None.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.11(a)

 

CONFLICTS AND TERMINATIONS, ACCELERATION OR
ENCUMBRANCE OF RIGHTS

 

None.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.11(b)

 

NOTICE AND CONSENT REQUIREMENTS

 

See Part
1.1(a)(v) of this Disclosure Schedule.

 

 

SCHEDULE 2.13

 

FINANCIAL INFORMATION

 

See attached
binders.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.14

 

SUPPLIERS AND CUSTOMERS

 

1.             Ten
Largest Suppliers over Last Fiscal Year

 

	
  Name

  	
   

  	
  Address

  	
   

  	
  Total Purchases(1)

  
	
  [...***...]

  

 

2.             Customer
List

 

	
  [...***... 11 pages omitted]

  

 

(1)  October 1, 2000 through September 30,
2001

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.15(a)

 

TAX INFORMATION

 

A lien search was conducted on February 8,
2002. The search showed two liens filed. The first was filed by the State of
Texas for $617. The second lien was filed by the Commonwealth of Pennsylvania
for $12,902.

 

Conexant is in the process of appealing the
assessed value of the Contributed Assets as of January 1, 2000, and
January 1, 2001.

 

 

Schedule 2.15(e)_22feb02_21.xs8:5- PM

 

Aggregate Tax Basis - ¶2.15(e)

 

	
  February 22,
  2002 federal tax basis of Fixed Assets & CIP to be contributed

  	
   

  	
  $

  	
  197,092,746.30

  	
   

  
	
  Federal tax
  basis of inventory at February 11, 2002 (book equals tax)

  	
   

  	
  $

  	
  7,346,418.00

  	
   

  
	
  Federal tax
  basis of other contributed assets (book equals tax)

  	
   

  	
  $

  	
  —

  	
   

  
	
  Adjustment
  for [...***...] fixed asset depreciation calculations

  	
   

  	
  $

  	
  (300,000.00

  	
  )

  
	
  Total

  	
   

  	
  $

  	
  204,139,164.30

  	
   

  

 

(A)               Based
on 2-22-2 download from Conexant [...***...] Fixed Asset System adjusted for
certain “top side” adjustments. Conexant and Andersen (due diligence item, it
would be safest to reduce the total above by, say, $300,000 or so to cover any
possible tax depreciation calc errors that are in the download from [...***...].

Andersen is aware of the “top side”
adjustments mentioned in the first sentence above.

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.17

 

REAL PROPERTY

 

	
  Portions of the buildings known as 501, 503, and 505 located at 4311
  Jamboree Road, Newport Beach, California 92660

  	
  Owned

  

 

 

CONEXANT DISCLOSURE SCHEDULE

 

PART 2.18

 

AFFILIATED TRANSACTIONS

 

None.

 

 

SCHEDULE 4.1

 

FUNDAMENTAL CHANGES

 

None.

 

 

SCHEDULE 4.1(a)(vi)

 

BUDGETED CAPITAL COMMITMENTS

 

None.

 

 

Schedule 6.4(a)

The Consents To Assign The Contracts

On Schedule 6.4(a) To Newport Fab, LLC

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Product Supply and Services Agreement

  	
   

  	
  [...***...]

   

  Rockwell Semiconductor Systems (“Buyer”)

  	
   

  	
  9/13/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bulk Gas Purchase Agreement (P.O. No. C2CJ-737000)
  (as amended)

   

  Purchase Order No. NB18420404

   

  Purchase Order No. NB18420232

  	
   

  	
  [...***...]

   

  Rockwell International Corporation (“Buyer”)

  	
   

  	
  8/27/91  (Effective 1/24/92) Letter
  Am. No. 1 10/19/98

   

  P.O. #NB18240404  10/31/00

   

  P.O. #NB 18420232 10/31/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement (as amended)

   

  Purchase Order No. NB363182, Change Order #3

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  11/5/98

   

  Later Am.  2/4/99

   

  Purchase Order  10/10/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nitrogen/Oxygen Supply Agreement No. NB98140030
  (as amended)

   

  Purchase Order #NB98140030

   

  Purchase Order #NB98140030, Change Order #1

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  12/01/98

   

  P.O. #NB98140030

  12/1/98

   

  Am. No. 1

  9/17/00

   

  P.O. #NB98140030,

  Change Order #1

  9/17/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Specialty Gas Supply Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  1/15/01

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  [...***...] End User Software License Agreement

  	
   

  	
  [...***...]

  	
   

  	
  Not signed or dated

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RTD License Agreement #2166, and Autosched

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  8/7/99 for RTD License Agreement; 1/13/99 for
  Purchase Order

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  License #’s 1968, 2195, and 2196, as referenced in
  Purchase Order NB98090096 (with [...***...], subsequently acquired by [...***...])

  	
   

  	
   

  	
   

  	
  NB98090096

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cellworks – License for 200 SECS connects

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  Not signed or dated

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  X-Site License as referenced in Purchase Orders
  NB360461 (with [...***...], subsequently acquired by [...***...]) and
  FB28600083

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  Not signed; dated 10/16/98

   

  Not signed; dated 2/13/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement with Software License
  Agreement as Attachment A

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  6/8/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Support Services Agreement with Software License
  Agreement as Attachment G

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  5/27/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchase Order #NB98060057, Change Order #9

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  10/31/01

  

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  Conexant Systems Purchasing Agreement

   

  P.O. #NB18420315

  P.O. #NB18420316

  P.O. #NB18420321

  P.O. #NB18420033

  P.O. #NB18420314

  P.O. #NB18420317

  P.O. #NB18420318

  P.O. #NB18420319

  P.O. #NB18420142

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc. (“Buyer”)

  	
   

  	
  Revised 11/1/01

  Amended 12/4/01

  P.O.s #NB18420315,

  316, 321 – 10/18/00

  P.O.s #NB18420033,

  314, 317, 318, 319, 142,

  143, 144, 322 – 10/17/00

  

 

 

Schedule 6.4(b)

 

 

	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  RS – Site ID 698; Purchase Order
  NB18450196, and the 10 floating licenses associated therein

  

  Purchase Order NB28660180

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  Purchase Order is not signed or dated

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Software License Agreement (impacts RTD
  License)

  

  Purchase Order #NB98060085

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  9/24/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  License Agreement for

  [...***...]

  Schedule I, Schedule II

  License Agreement for

  [...***...]

  License Products, No. 8204

  Schedule I, Schedule II

  Amendment No. 1 to Master

  Agreement No. 7610

  	
   

  	
  [...***...]

   

  Rockwell International Corp.

   

   

   

   

   

   

  [...***...]

   

  Conexant Systems, Inc.

  	
   

  	
  7/18/88

   

   

   

  3/28/96

   

   

   

   

  9/20/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  Software License and Support Agreement

  	
   

  	
  [...***...]

   

  Conexant Systems, Inc.

  (“Customer”)

  	
   

  	
  12/22/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...] Software End-User License
  Agreement

  	
   

  	
  [...***...]

  

  Conexant Systems, Inc.

  	
   

  	
  3/31/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Appendix 1

  

  Amendment 1 to Appendix

  

  Amendment 2 to Appendix

  

  Appendix 9 to [...***...]

  Software End-User License Agreement

  	
   

  	
   

  	
   

  	
  3/31/00

  

  4/28/00

  

  11/20/00

  

  3/31/00

  

 

 

SCHEDULE 6.7

 

	
  [...***... 4 pages omitted]

  

 

 

SCHEDULE 6.8(a)

 

EMPLOYEE AGREEMENTS

 

THAT MUST BE IN PLACE TO CLOSE

 

Scott Silcock

 

Paul Kempf

 

Theodore Zhu

 

Mark Becker

 

Daniel Lynch

 

Shu Li

 

Jeff McHenry

 

Marco RacanelliExhibit 10.11

 

 

WAFER
SUPPLY AND SERVICES AGREEMENT

 

among:

 

SPECIALTYSEMI,
INC.,

a Delaware corporation;

 

and

 

CONEXANT SYSTEMS, INC.,

a Delaware corporation

 

 

Dated as of March 30, 2002

 

 

 

 

Confidential treatment is being requested for
portions of this document.  This copy of the document filed as
an exhibit omits the confidential information subject to the
confidentiality request.  Omissions are designated by the symbol
[...***...].  A complete version of this document has been filed
separately with the Securities and Exchange Commission.

 

 

TABLE OF
CONTENTS

 

	
  1.

  	
  DEFINITIONS.

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  “Affiliate”

  	
  1

  
	
   

  	
  1.2

  	
  “Basic Price”

  	
  1

  
	
   

  	
  1.3

  	
  “Capacity”

  	
  1

  
	
   

  	
  1.4

  	
  “Conexant Spin-off”

  	
  1

  
	
   

  	
  1.5

  	
  “Contract Price”

  	
  2

  
	
   

  	
  1.6

  	
  “Current
  Average Probe Yield

  	
  2

  
	
   

  	
  1.7

  	
  “Delivery Note”

  	
  2

  
	
   

  	
  1.8

  	
  “Engineering Wafers”

  	
  2

  
	
   

  	
  1.9

  	
  “Fab Yield”

  	
  2

  
	
   

  	
  1.10

  	
  “Lot”

  	
  2

  
	
   

  	
  1.11

  	
  “Maximum
  Capacity”

  	
  2

  
	
   

  	
  1.12

  	
  “Move”

  	
  2

  
	
   

  	
  1.13

  	
  “MPD”

  	
  2

  
	
   

  	
  1.14

  	
  “Non-Specialty Wafers”

  	
  2

  
	
   

  	
  1.15

  	
  “Party”

  	
  2

  
	
   

  	
  1.16

  	
  “Pizza Mask Wafers”

  	
  2

  
	
   

  	
  1.17

  	
  “Photomasks”

  	
  2

  
	
   

  	
  1.18

  	
  “Planning Yield Assumption”

  	
  2

  
	
   

  	
  1.19

  	
  “Probe Services”

  	
  3

  
	
   

  	
  1.20

  	
  “Probe Yield”

  	
  3

  
	
   

  	
  1.21

  	
  “Process Failure”

  	
  3

  
	
   

  	
  1.22

  	
  “Production Wafers”

  	
  3

  
	
   

  	
  1.23

  	
  “Purchase Order”

  	
  3

  
	
   

  	
  1.24

  	
  “Purchase Order Release

  	
  3

  
	
   

  	
  1.25

  	
  “Quality Specifications”

  	
  3

  
	
   

  	
  1.26

  	
  “Risk Materials”

  	
  3

  
	
   

  	
  1.27

  	
  “Segment”

  	
  3

  
	
   

  	
  1.28

  	
  “Specialty Wafers”

  	
  3

  
	
   

  	
  1.29

  	
  “Specifications”

  	
  3

  

 

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.30

  	
  “Third-Party Requirement

  	
  4

  
	
   

  	
  1.31

  	
  “Uncommitted Available
  Capacity”

  	
  4

  
	
   

  	
  1.32

  	
  “Wafers”

  	
  4

  
	
   

  	
  1.33

  	
  “Wafer Credits”

  	
  4

  
	
   

  	
  1.34

  	
  “Wafer Volume Commitment”

  	
  4

  
	
   

  	
  1.35

  	
  “WOPD”

  	
  4

  
	
   

  	
  1.36

  	
  “WSPD”

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  PURCHASE AND SUPPLY OBLIGATIONS

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Conexant Purchase
  Obligations

  	
  4

  
	
   

  	
  2.2

  	
  Company Supply Obligations

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  WAFER PURCHASES

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Scope

  	
  9

  
	
   

  	
  3.2

  	
  Forecasts

  	
  10

  
	
   

  	
  3.3

  	
  Purchase Orders; Purchase Order Releases; Specialty Wafers

  	
  10

  
	
   

  	
  3.4

  	
  Acceptance and Acknowledgement

  	
  11

  
	
   

  	
  3.5

  	
  Wafer Lots; Expedited Services

  	
  11

  
	
   

  	
  3.6

  	
  Pizza Mask Wafers

  	
  12

  
	
   

  	
  3.7

  	
  Cancellation and Modifications to Orders

  	
  12

  
	
   

  	
  3.8

  	
  Materials

  	
  13

  
	
   

  	
  3.9

  	
  Risk Materials

  	
  13

  
	
   

  	
  3.10

  	
  NRE Services

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  PROBE SERVICES AND RE-PROBE SERVICES

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Scope

  	
  14

  
	
   

  	
  4.2

  	
  Purchase Orders

  	
  14

  
	
   

  	
  4.3

  	
  Acknowledgement and Acceptance

  	
  14

  
	
   

  	
  4.4

  	
  Changes, Cancellation and Modifications to Orders

  	
  14

  
	
   

  	
  4.5

  	
  Removal of Test Equipment from the Fab

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  DELIVERY AND LOGISTICS

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Delivery

  	
  15

  
	
   

  	
  5.2

  	
  Storage

  	
  16

  
	
   

  	
  5.3

  	
  Transition Services Agreement

  	
  16

  

 

ii

 

	
  6.

  	
  PRICING; CREDITS; AND PAYMENTS

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.2

  	
  Wafer Credits

  	
  16

  
	
   

  	
  6.3

  	
  Costs

  	
  17

  
	
   

  	
  6.4

  	
  Taxes

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  TRACKING; REPORTING; AND AUDITS

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Wafer Tracking

  	
  17

  
	
   

  	
  7.2

  	
  Reporting Requirements

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  WARRANTY AND DISCLAIMER

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Wafer Warranty

  	
  17

  
	
   

  	
  8.2

  	
  Process Failure

  	
  18

  
	
   

  	
  8.3

  	
  Disclaimers

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  INDEMNIFICATION

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Conexant
  Indemnification Obligations

  	
  18

  
	
   

  	
  9.2

  	
  Company Indemnification Obligations

  	
  18

  
	
   

  	
  9.3

  	
  Conditions

  	
  19

  
	
   

  	
  9.4

  	
  Sole and Exclusive Remedy

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  CONFIDENTIALITY

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  LIMITATIONS OF LIABILITY

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  Disclaimer

  	
  19

  
	
   

  	
  11.2

  	
  Basis of Bargain

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  TERM; TERMINATION

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  Term

  	
  20

  
	
   

  	
  12.2

  	
  Termination

  	
  20

  
	
   

  	
  12.3

  	
  Effect of Termination

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  GENERAL

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.1

  	
  Agency

  	
  21

  
	
   

  	
  13.2

  	
  Governing Law; Venue and Jurisdiction

  	
  21

  
	
   

  	
  13.3

  	
  Dispute Resolution

  	
  21

  
	
   

  	
  13.4

  	
  Injunctive Relief

  	
  23

  
	
   

  	
  13.5

  	
  Third-Party Beneficiaries

  	
  23

  
	
   

  	
  13.6

  	
  Compliance with Law

  	
  23

  

 

iii

 

	
   

  	
  13.7

  	
  Force Majeure

  	
  23

  
	
   

  	
  13.8

  	
  Amendment; Later Agreement

  	
  23

  
	
   

  	
  13.9

  	
  Notices

  	
  23

  
	
   

  	
  13.10

  	
  Assignment

  	
  24

  
	
   

  	
  13.11

  	
  Waiver

  	
  24

  
	
   

  	
  13.12

  	
  Severability

  	
  24

  
	
   

  	
  13.13

  	
  Counterparts and Facsimile

  	
  24

  
	
   

  	
  13.14

  	
  Rules of Construction

  	
  25

  
	
   

  	
  13.15

  	
  Schedules and Exhibits

  	
  25

  
	
   

  	
  13.16

  	
  Entire Agreement

  	
  25

  

 

iv

 

	
  EXHIBIT A

  	
   

  	
  PRICING

  
	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
   

  	
  WAFER VOLUME COMMITMENTS

  
	
   

  	
   

  
	
   

  	
  SCHEDULE 1

  	
  FORECAST

  
	
   

  	
   

  	
   

  
	
   

  	
  SCHEDULE 2

  	
  WAFER MOVES TABLE

  
	
   

  	
   

  
	
  EXHIBIT C

  	
   

  	
  RULES OF CHANGE, OPERATION, AND RELEASE
  PROCEDURES

  
	
   

  	
   

  	
   

  
	
  EXHIBIT D

  	
   

  	
  NEWPORT BEACH FAB CAPACITY

  
	
   

  	
   

  	
   

  
	
  EXHIBIT E

  	
   

  	
  WAFER CYCLE TIMES

  
	
   

  	
   

  	
   

  
	
  EXHIBIT F

  	
   

  	
  QUALITY SPECIFICATIONS

  
	
   

  	
   

  	
   

  
	
  EXHIBIT G

  	
   

  	
  REPORTS

  
					

 

v

 

CONFIDENTIAL

 

WAFER
SUPPLY AND SERVICES AGREEMENT

 

THIS WAFER SUPPLY AND SERVICES AGREEMENT
(the “Supply Agreement”) is entered into
as of March 30, 2002 (the “Effective Date”)
by and between CONEXANT SYSTEMS, INC., a Delaware corporation (“Conexant”) and SPECIALTYSEMI, INC.
a Delaware corporation (“Company”).

 

RECITALS

 

A.                                   Conexant,
Company, and Carlyle Capital Investors, L.L.C. have entered
into a Contribution Agreement dated February 23, 2002 (the “Contribution Agreement”)pursuant to
which Conexant
contributed to Company the assets used to provide specialty process foundry
services and to manufacture semiconductor wafers at a facility in Newport
Beach, California (the “Newport Beach Fab”).

 

B.                                     Conexant
desires, on the terms and conditions of this Supply Agreement, to purchase from
Company semiconductor wafers and related foundry, manufacturing, and probe
services. Company is willing to supply such wafers and services to Conexant
on the terms and conditions of this Supply Agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained in this Supply
Agreement, the Parties agree as follows:

 

AGREEMENT

 

1.                                      DEFINITIONS. Capitalized
terms not expressly defined elsewhere in this Supply Agreement have the
following meanings:

 

1.1                               “Affiliate” means any entity that at
any time during the term of this Supply Agreement controls, is controlled by,
or is under common control with a Party, where
control means direct or indirect ownership of fifty percent (50%) or more of
the outstanding voting stock or other equity interests ordinarily having voting
rights.

 

1.2                               “Basic Price” is defined in Exhibit A
(Pricing).

 

1.3                               “Capacity” means, as of any date for any period, the
number of MPD capable of being completed at the Newport Beach Fab during such
period, based on available equipment, tools, and personnel,
without additional capital spending, equipment purchases, or hiring of
personnel.

 

1.4                               “Conexant Spin-off” means any entity that is a successor of
any portion of the business of Conexant resulting
from a spin-off, sale, or divestiture of such business, regardless of whether Conexant
retains an equity or ownership interest in such entity. Without limiting the
foregoing, the Parties agree and acknowledge that Mindspeed Technologies and Conexant’s
wireless business (which is referred to within Conexant as “LeaderCo”) are, or
upon the date of divestiture will be, Conexant Spin-offs.

 

1

 

1.5                               “Contract Price” is defined in Exhibit A
(Pricing).

 

1.6                               “Current Average Probe Yield means,
for a particular type of Wafer, the Probe Yield established by averaging the
Probe Yield for two hundred (200) Wafers of such type in each of the three
previous Segments.

 

1.7                               “Delivery Note” means the delivery instructions provided
by Conexant
to Company for Wafers ordered by Conexant.

 

1.8                               “Engineering Wafers” means non-production Wafers
manufactured by Company for qualification or testing and may include Pizza Mask
Wafers.

 

1.9                               “Fab Yield” means the percentage deviation between a
particular number of Wafers for which fabrication is commenced at the Newport
Beach Fab, and the number of such Wafers for which fabrication is successfully
completed, irrespective of probe results.

 

1.10                        “Lot” means a single lot of Wafers
that are processed together at the Newport Beach Fab. Each Lot of Production
Wafers, Pizza Mask Wafers (other than Engineering Wafers), or Risk Materials
shall consist of twenty-five (25) Wafers. Each Lot of Engineering Wafers shall
consist of no less than five (5) and no more than twenty-five (25) Wafers.

 

1.11                        “Maximum Capacity” means, as of any date for any period, the
maximum number of MPD capable of being completed at the Newport Beach Fab
during such period based on available equipment, tools, and personnel, without
additional capital spending or equipment purchases. Maximum Capacity as of the
Effective Date is reflected in Exhibit D
(Newport Beach Fab Capacity).

 

1.12                        “Move” means completion with respect to a single Lot of
an individual stage in any of the processes required in fabricating Wafers at
the Newport Beach Fab, as described in Exhibit B, Schedule 2.

 

1.13                        “MPD” means Moves per day at the Newport Beach Fab.

 

1.14                        “Non-Specialty Wafers” means all Wafers of all types
other than Specialty Wafers.

 

1.15                        “Party” means either Conexant or Company,
as the context requires, and “Parties” means Conexant and Company collectively.

 

1.16                        “Pizza Mask Wafers” means multiple device designs on a
single Wafer.

 

1.17                        “Photomasks” means precision photographic quartz or
glass plates containing microscopic images of integrated circuits for use as
master images to transfer circuit patterns onto semiconductor wafers during the
fabrication of integrated circuits and other semiconductor products.

 

1.18                        “Planning Yield Assumption” means, for any given type of
Wafer, the expected
percentage deviation between the number of Wafers specified for delivery in a
Purchase Order and 

 

2

 

the total
number of Wafers actually delivered, as set forth in Exhibit B, Schedule 2
as such exhibit may be updated from time to time upon written notice from
Company.

 

1.19                        “Probe Services” means electrical testing of individual
semiconductor wafers on a substrate.

 

1.20                        “Probe Yield” means the percentage deviation between a
particular number of Wafers for which probing is conducted at the Newport Beach
Fab, and the number of such Wafers that probe successfully.

 

1.21                        “Process Failure” means a fault or flaw in the
performance of any process within the fabrication
operation that is
not due to designs, specifications, Photomasks, or
instructions provided by Conexant.

 

1.22                        “Production Wafers” means Wafers manufactured by Company
at the Newport Beach Fab after successful qualification and approval for mass
production.

 

1.23                        “Purchase Order” means a written blanket order for the
purchase of a specified quantity of Wafers or Probe Services submitted by Conexant
to Company.

 

1.24                        “Purchase Order Release” means a written release issued
by Conexant
authorizing Company to commence processing of the Wafers under a Purchase
Order.

 

1.25                        “Quality Specifications” means the Wafer quality
standards and criteria set forth in Exhibit F (Quality
Specifications), as may they be modified by written agreement of the Parties
from time to time.

 

1.26                        “Risk Materials” means Wafers specifically identified by
Conexant
in a Purchase Order as “Risk Materials” that are to be manufactured by Company
pursuant to Conexant’s
Specifications, but for which compliance with the Quality Specifications is
specifically waived. “Risk Materials” may include the following: unverified
mask sets, unverified process changes, no supporting qualification data, and
known design rule violations.

 

1.27                        “Segment” means any one of the following two-calendar
month periods: April-May, June-July, August-September, October-November,
December-January, and February-March. Segments shall be numbered sequentially
during the term of this Supply Agreement, commencing with Segment 1, which
shall be the first full Segment following the Effective Date.

 

1.28                        “Specialty Wafers” means Bipolar, Bi-CMOS, and SiGe
Wafers.

 

1.29                        “Specifications” means the technical specifications for
the Wafers in effect at the Newport Beach Fab immediately prior to the
Effective Date, as they may be modified from time to time by written agreement
of the Parties, or if such technical specifications do not exist as of the
Effective Date, then those technical specifications mutually agreed to in
writing by the Parties for such Wafers, as they may be modified from time to
time written agreement of the Parties.

 

3

 

1.30                        “Third-Party Requirement means any oral or written
commitment from a customer (other than Conexant or a Conexant
Spin-Off or a Conexant Affiliate) to engage Company to
manufacture Wafers or provide related services for such customer at the Newport
Beach Fab, which commitment is reasonably likely to result in a binding
obligation.

 

1.31                        “Uncommitted Available Capacity” means, at any given
time, the Capacity remaining at the Newport Beach Fab after excluding all
Capacity necessary to fulfill the Company’s commitments under this Supply
Agreement and Third-Party Requirements.

 

1.32                        “Wafers” means semiconductor wafers to be processed and
prepared for shipping by Company at the Newport Beach Fab including Engineering
Wafers, Production Wafers, Pizza Mask Wafers, and Risk Materials.

 

1.33                        “Wafer Credits” is defined in Section 6.2
(Wafer Credits).

 

1.34                        “Wafer Volume Commitment” is defined in Section 2.1(a) (Volume
Commitments).

 

1.35                        “WOPD” means a number of Wafers for which the
fabrication process is completed at the Newport Beach Fab in a single day.

 

1.36                        “WSPD” means a number of Wafers for which the
fabrication process is commenced at the Newport Beach Fab in a single day.

 

2.                                      PURCHASE
AND SUPPLY OBLIGATIONS.

 

2.1                               Conexant Purchase Obligations.

 

(a)                                  Volume
Commitments. Subject to the terms and conditions of this Supply Agreement
and in accordance with the procedures set forth in Section 3.3 (Purchase
Orders; Purchase Order Releases; Specialty Wafers), Conexant
will submit Purchase Orders to Company for the manufacture of, and will
purchase pursuant to such Purchase Orders, Wafers in volumes sufficient to meet
the minimum MPD purchase commitments set forth in Exhibit B,
Schedule 1 (the “Wafer Volume Commitments”),
at the prices set forth below.

 

(b)                                  Segments
1 Through 6. During Segments 1 through 6:

 

(i)                                    Conexant
shall meet the Wafer Volume Commitment corresponding to the current Period set
forth in Exhibit B, Schedule 1.

 

(ii)                                For
any of Segments 1 through 6 in which the number of Wafers purchased by Conexant
at the end of the Segment is less than the greater of (i) the Wafers
ordered in the Purchase Order for such Segment described in Section 3.3(a) and
(ii) the Wafer Volume Commitment for such Segment, in addition to the
amounts paid for Wafers purchased, Conexant shall pay the following in respect
of the shortfall in the Wafers purchased compared to the greater of (i) the
Wafers ordered in the Purchase Order for such Segment described in Section 3.3(a) and
(ii) the Wafer Volume Commitment (the “Shortfall”):

 

4

 

(1)                                 [...***...]
of the Contract Price for the Shortfall up to the difference between the Wafer
Volume Commitment and the Wafers ordered in the Purchase Order described in Section 3.3(a) (unless the number of Wafers ordered in the
Purchase Order described in Section 3.3(a) equals or exceeds
the Wafer Volume Commitment, in which case this portion will be equal to
[...***...]); plus

 

(2)                                 [...***...]
of the Contract Price for the portion of the Shortfall not covered in Section 2.1(b)(ii)(1) above
(if any), up to the lesser of (i) the difference between (A) the
number of Wafers purchased in the Working Segment and (B) the Wafer Volume
Commitment (unless the number of Wafers purchased exceeds the Wafer Volume
Commitment, in which case this amount will be equal to [...***...]); and (ii) the
difference between the Wafers covered in Section 2.1(b)(ii)(1) and
[...***...] of the Wafer Volume Commitment; plus

 

(3)                                 [...***...]
of the Contract Price for the portion of the Shortfall not covered in Section 2.1(b)(ii)(1) or
in Section 2.1(b)(ii)(2) above (if any).

 

Example
1. The Wafer Volume Commitment is [...***...] WSPD. Thirty
days prior to the beginning of the Working Segment, Conexant orders the Wafer
equivalent of [...***...] WSPD for
the Working Segment. At the end of the Segment, Conexant purchases the Wafer
equivalent of [...***...] WSPD. The
Shortfall is the Wafer equivalent of [...***...] WSPD. Conexant pays [...***...] on a Wafer equivalent of [...***...] WSPD, [...***...] on a Wafer equivalent of [...***...] WSPD, and [...***...] on a
Wafer equivalent of [...***...] WSPD.

 

Example 2. The Wafer Volume Commitment is [...***...]
WSPD. Thirty days prior to the beginning of
the Working Segment, Conexant orders the Wafer equivalent of [...***...]
WSPD for the Working Segment. At the end of
the Segment, Conexant purchases the Wafer equivalent of [...***...] WSPD. The Shortfall is the Wafer equivalent of [...***...]
WSPD. Conexant pays [...***...] on a Wafer equivalent of [...***...] WSPD, and [...***...] on the Wafer equivalent of [...***...] WSPD.

 

(iii)                            If,
in any of Segments 1 through 6, Conexant fails to meet the Wafer Volume
Commitment or to purchase Wafers ordered in the Purchase Order for such Segment
described in Section 3.3(a), and as a result pays any amounts pursuant to Section 2.1(b)(ii),
and, prior to the end of Segment 6, purchases Wafers in excess of the Wafer
Volume Commitment for the Working Segment, then Conexant shall be required to
pay only [...***...] of the Contract Price for all Wafers purchased in such Working
Segment in excess of the Wafer Volume Commitment, until the total number
purchased up to that time equals the greater of (A) the average of the
total Wafer Volume Commitment for Segments 1 through 6, pro-rated to the time
in question; or (B) the average of the total Wafers ordered in Purchase
Orders pursuant to Section 3.3(a) during Segments 1 through 6
for which Conexant paid amounts pursuant to Section 2.1(b)(ii),
pro-rated to the time in question. Conexant will pay the Contract Price, Basic
Price, or other price specified in this Supply Agreement, as appropriate, for
any additional Wafers purchased in the Working Segment thereafter.

 

(c)                                  Segments
7 Through 18. During Segments 7 through 18:

 

5

 

(i)                                    Conexant
shall meet the Wafer Volume Commitment for such period set forth in Exhibit B,
Schedule 1.

 

(ii)                                In
the event that the number of Wafers purchased under the Purchase Order(s) for
any Working Segment is less than the greater of (i) the Wafers ordered in
the Purchase Order for such Segment described in Section 3.3(a) and (ii) the
Wafer Volume Commitment for the Working Segment, Conexant
shall pay to Company, in addition to the Contract Price for the Wafers actually
purchased,
an amount equal to one hundred percent (100%) of the total Contract Price for
the Shortfall for such Segment.

 

(d)                                  Requirements
in Excess of the Wafer Volume Commitment.

 

(i)                                    Non-Specialty
Wafers. During Segments 1 through 24, except to the extent that it has any
preexisting obligations as of the Effective Date to purchase Non-Specialty
Wafers from third parties, (and, only during Segments 18 through 24, upon the additional condition
that Company is competitive on cost, service, yield
and technology for those Non-Specialty Wafers), Conexant shall
submit all requirements for Non-Specialty Wafers that are in excess of the
Wafer Volume Commitment to Company, which, provided that it has sufficient
Uncommitted Available Capacity, shall be obligated to produce such Wafers, and Conexant
shall be obligated to purchase such Wafers at the Contract Price, except during
Segments 13 through 24. During Segment 13 and the first month of Segment 14 (“Quarter 9”), Conexant
will purchase such Wafers at a price equal to the sum of the Contract Price and
[...***...] of the difference between the Contract Price and the Basic Price. During
the second month of Segment 14 and Segment 15 (“Quarter 10”), Conexant
will purchase such Wafers at a price equal to the sum of the Contract Price and
[...***...] of the difference between the Contract Price and the Basic Price. During
Segment 16 and the first month of Segment 17 (“Quarter 11”), Conexant
will purchase such Wafers at a price equal to the sum of the Contract Price and
[...***...] of the difference between the Contract Price and the Basic Price (in
each of Quarters 9, 10, and 11, the prices described for each respective
Quarter shall be referred to as the “Stepped Price”). During Segments 18
through 24, Conexant
will purchase such Wafers at the Basic Price.

 

(ii)                                Specialty
Wafers. During Segments 1 through 12, Conexant may submit
its requirements for Specialty Wafers in excess of the Wafer Volume Commitment
to Company, which, provided that it has sufficient Uncommitted Available
Capacity, shall be obligated to produce such Wafers. Conexant
shall purchase such Wafers at the Contract Price.

 

(e)                                  Surge
Capacity. At any time after Conexant’s
submission of a Purchase Order for any Working Segment, Conexant
may request to increase the number of Wafers to be purchased in such Working
Segment (an “Increase Notice”).

 

(i)                                    Segments 1 through 18. During
Segments 1 through 18, the following terms will apply:

 

(1)                                 Commitment Surge. If Conexant
submits an Increase Notice with at least [...***...] advance notice for additional
Wafers in order to meet a Wafer Volume Commitment (“Commitment Surge Wafers”),
Company will fabricate and sell to Conexant a number of Commitment Surge Wafers
equal to the lesser of (A) [...***...]; or (B) the 

 

6

 

equivalent
of no more than [...***...] WSPD. Company will use commercially reasonable efforts
to deliver the Commitment Surge Wafers as soon as possible. Conexant will pay
the [...***...] for all Commitment Surge Wafers.

 

(2)                                 Beyond Commitment Surge. If
Conexant submits an Increase Notice with at least [...***...] advance notice for
additional Wafers that either (A) are [...***...]; or (B) represent the
equivalent of more than [...***...] WSPD (“Additional Wafers”), Company will use
commercially reasonable efforts to fabricate and sell to Conexant the number of
Additional Wafers ordered by Conexant. Conexant will pay [...***...] for all
Additional Wafers.

 

(ii)                                After Segment 18. After Segment
18, at any time after Conexant’s submission of a Purchase Order for
any Working Segment, Conexant may submit an Increase Notice to Company. If Company
has Uncommitted Available Capacity, Company will fabricate and sell to Conexant
such additional Wafers, or as many as can be fabricated in light of the
Uncommitted Available Capacity. Conexant will pay [...***...] for all such
additional Wafers purchased after Segment 18.

 

(f)                                    Purchases
for Certain Entities. Company agrees that Conexant, as agent,
may place orders for any Conexant Spin-Off or Conexant
Affiliate, under the same terms and conditions for Wafers established under
this Supply Agreement. The Parties acknowledge and agree that at any time after
a Conexant
Spin-off commences operations as a separate legal entity, (i) Conexant
may partition the Wafer Volume Commitments between Conexant
and Conexant
Spin-offs, assuring that the total volume meets the total Wafer Volume
Commitment; (ii) Conexant and Conexant Spin-offs
may partition Wafer Credits between them, provided, however, that the total number
of Wafer Credits held by Conexant and all Conexant Spin-offs
will not exceed the original number of Wafer Credits; and (iii) each Conexant
Spin-off (a “Participating Spin-off”) may
enter into a separate agreement with Company containing all of the terms and
conditions of this Supply Agreement, in which case the Participating Spin-off
will order Wafers directly from Company. Company will have the right to review
the allocation
of Wafer Volume Commitments, Wafer Credits, and other rights hereunder
partitioned and assigned to each Participating Spin-off, and Conexant
will work in good faith with Company to resolve any reasonable objections that
the Company may have to such allocation. If Conexant
and Participating Spin-offs partition Wafer Volume Commitments as set forth
above, the determination of whether the Wafer Volume Commitment is met will be
determined on a collective basis, and no additional payments to meet the Wafer
Volume Commitment will be due to Company if the total number of Wafers purchased
by Conexant
and Participating Spin-offs is sufficient to meet or exceed the applicable
Wafer Volume Commitment. Conexant will remain responsible
to Company for
satisfaction of Wafer purchase and payment obligations hereunder,
regardless of whether it is  Conexant itself or a
Participating Spin-off that fails to satisfy any such obligations.
In the event that a third party acquires any Participating Spin-off, its
business, or all or substantially all of its assets, then such third party may
only assume the rights of Participating Spin-offs hereunder with respect to
Wafer types of such Participating Spin-off that have been manufactured or are
under development by the Newport Beach Fab at the time of such acquisition.

 

(g)                                 Cooperation.
Conexant
shall cooperate with Company in furtherance of the purposes hereof by timely
furnishing all design information, Photomasks, specifications, 

 

7

 

intellectual
property, and other items and information needed to fabricate the Wafers
ordered by Conexant,
and by providing reasonable technical advice and assistance in such efforts.

 

(h)                                 Payment;
Remedy. All determinations of whether Wafer Volume Commitments have been
met during any Working Segment shall be determined at the end of such Working
Segment, and all amounts to be paid in respect of portions of the Wafer Volume
Commitment not purchased in accordance with this Section will be tracked
monthly, and reconciled and paid at the end of each Working Segment. Conexant’s
payment of the foregoing amounts shall be Company’s sole and exclusive remedy,
and Conexant’s
entire liability, for Conexant’s failure to meet any Wafer Volume
Commitment hereunder or to purchase any Wafers ordered in Purchase Orders
pursuant to Section 3.3(a) during Segments 1 through 18.

 

2.2                               Company
Supply Obligations.

 

(a)                                  Commitment; Requests
for Increased Capacity. Company shall be able to provide the Capacity to
satisfy the Wafer Volume Commitments set forth in Exhibit B, Schedule 1
during each Segment of the term of this Supply Agreement, and will accept and
fulfill all Purchase Orders that are submitted pursuant to the [...***...] Purchase
Order requirements set forth in Section 3.3 (Purchase Orders;
Purchase Order Releases; Specialty Wafers) up to the applicable Wafer Volume
Commitments. In addition, upon Conexant’s request,
Company will increase (and maintain for a period of time specified by Conexant)
Capacity up to the Maximum Capacity of the Newport Beach Fab,
provided that (i) Company will have no less than three (3) Segments
in which to accomplish such increase; (ii) in no event will Company be
required to increase Capacity by an increment equivalent to more than fifty
(50) WSPD for any three (3) Segment period; and (iii) at the time of
its request, Conexant submits binding Purchase Orders for a
total number of Wafers sufficient to utilize the requested increase in Capacity
for the period of the desired increase.

 

(b)                                  Notice
Requirements. If at any time Company believes or becomes aware that it
would be unable to satisfy the Wafer requirements of Conexant
contained in the latest Order Forecast, then Company will promptly notify Conexant
in writing.

 

(c)                                  Wafer
Processes. This Supply Agreement applies to all processes currently
available or in development at the Newport Beach Fab. Future processes that are
developed by the Company may be added to this Supply Agreement by mutual
consent. Subject to the restrictions in this Section 2.2(c),
Company may terminate the use of a Wafer process at the Newport Beach Fab. At
least [...***...] prior to the date of the discontinuance of any process with
respect to any Wafers, Company shall provide Conexant with
written notice of its intent to terminate such Wafer process and shall
cooperate with Conexant on a transition plan with respect to Conexant’s
supply of Wafers. If the projected or actual volume on any process decreases to
less than the equivalent of [...***...] WSPD over [...***...] consecutive Segments,
Company may phase out such process without such [...***...] notice, provided that Conexant and Company will in such case
cooperate to phase out such process in a timely manner through an end-of-life
buy. Company will perform the transition in accordance with the plan and will
use commercially reasonable efforts to ensure a smooth transition.

 

8

 

(d)                                  Closing
of Newport Beach Fab. Company shall notify Conexant at least
[...***...] prior to the date that Company intends to commence any closure, in
whole or in part, of the Newport Beach Fab. Company shall prepare and obtain Conexant’s
written approval on a transition plan to transfer the Wafer processing
technologies requested by Conexant to a foundry or foundries designated by
Conexant
and specifically designed to ensure that there is no interruption in Conexant’s
supply of Wafers. The time to prepare and approve the transition plan will be
completed in parallel with the [...***...] notification period. Both Parties will
use commercially reasonable efforts to (i) transfer the Wafer processing
technology in accordance with the Conexant-approved
plan and (ii) ensure a smooth transition of Wafer processing including
making available Company engineers to assist the designated foundry or
foundries in implementing and qualifying the Wafer processing technology and to
promptly respond to inquiries regarding the use of such processes or technology.
Conexant
shall reimburse Company for the actual out-of-pocket expenses incurred by
Company, and pre-approved by Conexant, in
transitioning such technology to the designated foundry or foundries. Conexant
will have the right, until such time as the designated foundry or foundries is
operational and qualified to process the Wafers, to continue to submit Purchase
Orders for Wafers to Company. Company will continue to manufacture, supply, and
provide to Conexant,
in accordance with the Wafer purchase procedures in Section 3
(Wafer Purchases), any such Wafers that are ordered. The foregoing obligations
are in addition to Company’s other obligations under this Supply Agreement.

 

(e)                                  Supply Interruptions. If at any time
Company experiences a Material Interruption (as defined below), Conexant’s
Wafer Volume Commitments shall be reduced by the number of Wafers Company is
unable to supply for the actual duration of such Material Interruption,
provided, however, that if such Material Interruption results from Conexant’s
failure to provide any services that Conexant is obligated to provide under the
Information Technology Service Agreement of even date herewith by and between
Company and Conexant, then Conexant’s Wafer Volume Commitment shall not be  reduced as a result of such Material
Interruption. If an unintended interruption in Company’s ability to fulfill its
supply obligations occurs that is not a Material Interruption, Conexant shall
remain obligated to satisfy its obligations hereunder to purchase Wafers,
provided, that if, due to such interruption, Company is unable to deliver a
number of Wafers ordered to fulfill a portion of a Wafer Volume Commitment
prior to the end of the Segment, then Conexant will be excused from that
portion of the Wafer Volume Commitment for that Segment, and such portion will
be rolled over to be fulfilled by the end of the following Segment. This
provision shall not limit any other rights or remedies Conexant or Company may
have for a breach of this Supply Agreement or otherwise, and nothing in this
provision is intended to supersede, restrict, or otherwise limit either party’s
rights under Section 13.7 (Force Majeure). For purposes of this Section, “Material
Interruption” means an unintended interruption in Company’s ability to produce
Wafers that (i) endures for more than a period of [...***...], and (ii) causes
a reduction in Capacity of [...***...] or more WSPD.

 

3.                                      WAFER
PURCHASES.

 

3.1                               Scope.
Upon receipt of an applicable Purchase Order Release (as described in Section 3.3(b) (Purchase
Order Releases) below), Company shall produce Wafers and provide Probe Services
for Conexant.
Wafers may include Production Wafers, Engineering Wafers, and Risk Materials from
any semiconductor wafer process in production, or released to production, at
the Newport Beach Fab on or after the Effective Date. For new Wafers or
processes requested by 

 

9

 

Conexant,
Conexant
will provide Company with the documentation substantially similar to the
document(s) set forth in Exhibit C (Rules of Change, Operation
and Release Procedures), as applicable to the requested process. Both Parties
agree to cooperate to provide all necessary information as described in Exhibit C.

 

3.2                               Forecasts.
On or about the last day of each calendar month during the term of this
Supply Agreement, Conexant will provide to Company a rolling
forecast, covering a minimum period of [...***...], of Conexant’s
expected order volumes for Wafers in the coming [...***...] (the “Order Forecast”). The Order
Forecasts are for planning purposes only and will not bind Conexant
or the Company in any respect. No deviation of actual volumes from the
forecasted volumes will relieve Conexant or Company
of their respective responsibilities and obligations under this Supply
Agreement or affect the pricing established under this Supply Agreement. Subject
to the requirements of Section 2.1 (Conexant Purchase Obligations),
Conexant
may change or update the forecasts delivered hereunder at any time upon notice
to Company.

 

3.3                               Purchase
Orders; Purchase Order Releases; Specialty Wafers.

 

(a)                                  Purchase
Order. Not later than [...***...] prior to the first business day of each
Segment during the term of this Supply Agreement (other than Segment 1), Conexant
shall submit to Company a written Purchase Order setting forth the specific
volume and mix of Wafers [...***...] it intends to purchase under this Supply
Agreement during the following Segment (the “Working
Segment”), expressed as total WSPD per type of Wafer. Conexant
shall not load the Newport Beach Fab by a number of WSPD in each day of the
Working Segment set forth in such Purchase Order that deviates by more than
plus or minus [...***...] WSPD from the average number of WSPD per day for the
entire Working Segment, as determined by dividing the total number of WSPD for
the entire Working Segment set forth in such Purchase Order by sixty and
two-thirds (60 2/3) days. The Purchase Order for Segment 1 will be submitted to
Company within three (3) business days after the Effective Date.

 

(b)                                  Purchase
Order Releases  Conexant
will submit [...***...] Purchase Order Releases against outstanding Purchase
Orders, to be submitted by close of business on [...***...] for
Wafers to be released [...***...]   Each Purchase Order Release for Wafers will
specify the applicable Purchase Order, Wafer part number and revision level,
quantity, additional component parts required by Conexant,
price, delivery date, ship-to address, and other applicable information as
determined by Conexant. Purchase Order Releases shall not
deviate from the volumes and mixes specified for the corresponding period of
time in the applicable Purchase Order, except that Conexant
may (i) modify the volume of Wafers by no more than plus or minus [...***...]
WSPD from the specified volume for the applicable period of time in the
applicable Purchase Order; and (ii) [...***...], subject to available Capacity
at the Newport Beach Fab. Notwithstanding the receipt of a Purchase Order, Company
will not commence manufacturing of the Wafers under a Purchase Order until Conexant
has issued a Purchase Order Release.

 

(c)                                  Reserved
SiGe Wafers. If, at any time Company receives a written order (a “SiGe Order”) from a third party
customer for the purchase of SiGe Wafers, and Company lacks sufficient Capacity
to fill the SiGe Order because it is obligated to reserve such Capacity for
SiGe Wafers that have been ordered but not yet released by Conexant
pursuant to Section 3.3(b) (Purchase Order Releases) above
(the “Reserved SiGe Wafers”), Company may
notify Conexant

 

10

 

of the SiGe
Order and require Conexant to confirm that it will issue a
Purchase Order Release for such Reserved SiGe Wafers.

 

(i)                                    If
Conexant
confirms that it will issue a Purchase Order Release for the Reserved SiGe
Wafers and later does so, then Company will fill the Purchase Order Release for
the Reserved SiGe Wafers [...***...].

 

(ii)                                If
Conexant
confirms that it will issue a Purchase Order Release for the Reserved SiGe
Wafers and later fails to do so, then Conexant will pay to
Company an amount equal to [...***...], up to the number of SiGe Wafers made
unavailable due to Conexant’s failure to cancel the unreleased
Reserved SiGe Wafers.

 

(iii)                            If
Conexant
agrees to cancel the Reserved SiGe Wafers, then (A) Company will be
relieved of any further obligation to hold the Capacity for the Reserved SiGe
Wafers or deliver the Reserved SiGe Wafers to Conexant; and (B) Company
may utilize the previously reserved Capacity to fill the SiGe Order.

 

3.4                               Acceptance
and Acknowledgement  All Purchase
Orders submitted at least [...***...] prior to the start of the Working Segment for
Wafers shall be accepted by Company up to the Wafer Volume Commitment and as
specified in Section 2.1(d) (Requirements in Excess of the
Wafer Volume Commitment), and may be accepted by Company in all other cases. Subject
to the terms of this Supply Agreement, once Company accepts a Purchase Order,
it will be obligated to produce and deliver the Wafers in the volumes specified
in the Purchase Order (subject to the applicable Planning Yield Assumption),
and Conexant will be obligated to purchase such Wafers in the volumes specified
in the Purchase Order. Within [...***...] after receipt of each Purchase Order or
Purchase Order Release or, if received on a non-business day or on the day
prior to a non-business day, within [...***...], Company will acknowledge such
Purchase Order or Purchase Order Release in writing by either fax or e-mail
notice to Conexant’s
purchasing agent identified on the face of the Purchase Order or Purchase Order
Release. Such acknowledgement will include Company’s projected delivery date
for the order; provided that, in establishing such delivery date, Company shall
use reasonable efforts to comply with the delivery dates specified in Conexant’s
Purchase Order Release. The Wafer process cycle times set forth in Exhibit E
(Wafer Cycle Times) shall be updated each Segment. If at any time during the
production of such Wafers Company believes or becomes aware that the delivery
may be delayed by more than [...***...], Company shall provide Conexant
with written notice of such change in the delivery schedule and the
quantity of Wafers affected. Such report shall be referred to as an “Exception Report” and any Wafer
Lots not specifically identified in an Exception Report shall be delivered by
Company no later than the delivery date specified in the Purchase Order Release.
Purchase Orders or Purchase Order Releases not acknowledged or rejected by
Company within such time will be deemed accepted by Company.

 

3.5                               Wafer
Lots; Expedited Services. Unless otherwise agreed to in writing by the
Parties, Production Wafers shall be ordered by Conexant and
delivered by Company in Lots of twenty-five (25) Wafers
(subject to the applicable Planning Yield Assumptions)
and Engineering Wafers shall be ordered by Conexant and
delivered by Company in Lots of five (5) to twenty-five (25) Wafers
(subject to the applicable Planning Yield Assumptions). At Conexant’s
request, Company will use commercially reasonable efforts to process Production
Wafer Lots, Engineering 

 

11

 

Wafer Lots,
and Risk Materials on an expedited basis; provided that
Company shall have no liability for failure to actually provide priority
processing. Company shall provide up to the Allowable Number (as defined below)
of priority Lots to be processed at any one time [...***...], and if the number of
expedited Lots requested by Conexant and provided on an expedited basis by
Company exceeds the Allowable Number of Lots in process at any given time, the
cost of Wafers in excess of the Allowable Number shall be:

 

	
  P1 Lots

  	
   

  	
  [...***...] multiplied
  by the Contract Price or Basic Price (or other applicable price)

  
	
   

  	
   

  	
   

  
	
  HVL Lots

  	
   

  	
  [...***...] multiplied
  by the Contract Price or Basic Price (or other applicable price)

  

 

The “Allowable Number” shall be
determined as follows:  in Segments 1-6,
the Allowable Number of expedited Lots shall be [...***...] ([...***...] of which may
be HVL), in Segments 7-12, the Allowable Number shall be [...***...] ([...***...] of
which may be HVL), and in Segments 13-18, the Allowable Number shall be [...***...]
([...***...] of which may be HVL); provided, that,
for every [...***...] WSPD contained in any Purchase Order in excess of the Wafer
Volume Commitment for any Working Segment, the Allowable Number shall be
increased by [...***...] for that Segment.

 

3.6                               Pizza
Mask Wafers. Conexant may submit Purchase Orders and Purchase
Order Releases for Pizza Mask Wafers, and Company shall fulfill such orders to
the extent required to fill such orders under Section 2.2 (Company
Supply Obligations), provided that (i) the only testing of Pizza Mask
Wafers required to be performed by Company will be parametric testing; and (ii) Company
will deliver Pizza Mask Wafers in wafer form. The price of the Pizza Mask Wafer
will be [...***...].

 

3.7                               Cancellation
and Modifications to Orders. Conexant may modify
or reschedule a Purchase Order Release (in whole or in part) as set forth
in this Section 3.7; provided that Conexant meets its
Wafer Volume Commitments.

 

(a)                                  Cancellation
Before Process Start  Except as set
forth in Section 3.3(b) (Purchase Order Releases), for each
Purchase Order Release for which processing of the Wafers has not yet begun, Conexant
may cancel or modify a Purchase Order Release (in whole or in part) [...***...] by
delivering to Company a written notice of cancellation or modification, provided that Conexant replaces
within a reasonable time any Moves reduced or eliminated through such
cancellation or modification with the same number of Moves with respect to
replacement products.

 

(b)                                  Rescheduling.
For each Purchase Order Release, Conexant may reschedule delivery
[...***...]  by delivering to Company a
written notice rescheduling such delivery; provided that Conexant
shall be responsible for payment for all completed Wafers in accordance with
the original delivery schedule, and that such delays shall be subject to Section 5.2
(Storage) regarding storage of completed Wafers.

 

12

 

(c)                                  Cancellation
After Process Start  If Conexant
cancels a Purchase Order Release (in whole or in part) after the date the
processing of such Wafers has been started, then either, (i) if so
instructed by Conexant, Company will not complete the
cancelled Wafers and will deliver the incomplete Wafers to a location
designated by Conexant, in which case the Wafers will not
count against the Wafer Volume Commitment, and Conexant will pay
the Pro-Rated Price, as defined below; or (ii) unless otherwise instructed
pursuant to clause (i) of this Section, complete the cancelled Wafers and
hold the resulting Wafers in finished goods inventory where they will be stored
in accordance with Section 5.2 (Storage), in which case the Wafers
will count against the Wafer Volume Commitment and Conexant
will pay the applicable Price for completed Wafers. The “Pro-Rated
Price” means the greater of (A) [...***...] percent ([...***...] %)
of the price that would have been paid for the completed Wafers (either the
Contract Price, the Basic Price, or other applicable price, as the case may be)
and (B) such applicable price for completed Wafers multiplied by the ratio
obtained by dividing (i) the number of Moves completed with respect to the
Lots for which the Purchase Order Release is cancelled as of the time the
cancellation notice is received by Company by (ii) the total number of
Moves that would have been required to process the Lots in question.

 

(d)                                  Rework
Requests  If for any reason other than
a Process Failure it becomes necessary to, or Conexant otherwise
requests Company to, modify any part of the fabrication process with respect to
Wafers for which a Purchase Order has already been accepted or for which the
fabrication process has already started, Company may agree to such changes if
technically feasible and if Company has available Capacity, in which case Conexant
will be obligated to pay the applicable price for rework services set forth in Exhibit A
(Pricing). In the event that Company does not accept such changes, then Conexant
may cancel the Purchase Order Release in question, subject to this Section 3.7.

 

3.8                               Materials.
Company shall be responsible for procuring all materials required to
manufacture the quantity of Wafers ordered by Conexant. Conexant
shall be responsible for obtaining and furnishing to Company all Photomasks, or
any other products with similar functional characteristics, required to
manufacture or support the Wafers ordered by Conexant. Company
shall be responsible for repair or replacement of any of Conexant’s
Photomasks damaged while in Company’s possession.

 

3.9                               Risk
Materials. At Conexant’s request and subject to Section 2.1
(Conexant Purchase Obligations) and to an applicable Purchase Order, Company
shall process and provide Risk Materials to Conexant. With all
Purchase Orders for Risk Materials, Conexant shall
provide a written statement setting forth the risk factors or any special
circumstances related to the Risk Materials and specifying the quantity of Risk
Materials to be provided. Company’s acknowledgement of a Purchase Order for
Risk Materials shall be deemed an acknowledgement of such risks or
circumstances.

 

3.10                        NRE
Services  At Conexant’s
request, Company shall negotiate to provide non-recurring engineering services
for new Wafers, provided that the Parties reach
agreement concerning the terms and conditions of provision of such services. The
Parties shall negotiate in good faith the terms and conditions and any
applicable costs associated with such engineering services.

 

13

 

4.                                      PROBE
SERVICES AND RE-PROBE SERVICES.

 

4.1                               Scope.
Company shall provide Probe Services for all Wafers produced for Conexant
by the Company that are included in the Wafer Volume Commitment, at no
additional charge. For other Wafers provided by Company, the Parties will agree
upon whether the Basic Price will include Probe Services. Company may also
provide Probe Services for Wafers from other sources provided by Conexant,
subject to agreement by the Parties on terms and conditions for such Probe
Services. Probe Services to be provided under this Supply Agreement shall be
limited to Probe Services in conjunction with Wafer production, and do not
include Engineering Probe or Probe Card Services, which are subject to the
separate Transition Services Agreement between the Parties. Probe Services may
be provided using testers owned by Company or Conexant, as
specified by Conexant in the applicable Purchase Order. Conexant
will provide all of the documentation and test parameters necessary to complete
Probe Services prior to issuing a Purchase Order Release.

 

4.2                               Purchase
Orders. Subject to the agreement of the Parties on the terms for Probe
Services (other than for Wafers produced by Company), Conexant
will submit blanket Purchase Orders to Company for Conexant’s
expected requirements for Probe Services. Conexant will then
submit [...***...] Purchase Order Releases to such Purchase Orders. Notwithstanding
the receipt of a Purchase Order, Company will not commence performance of Probe
Services under a Purchase Order until Conexant has issued
a Purchase Order Release. Each Purchase 
Order Release for Probe Services will specify the applicable Purchase
Order, applicable wafers provided by Conexant, testers to
be used, price, delivery date, ship-to address, and other applicable
information as determined by Conexant.

 

4.3                               Acknowledgement
and Acceptance. Within [...***...] after receipt of each Purchase Order or
Purchase Order Release or, if received on a non-business day or on the day
prior to a non-business day, within [...***...], Company will acknowledge such
Purchase Order or Purchase Order Release in writing by either fax or e-mail
notice to Conexant’s
purchasing agent identified on the face of the Purchase Order or Purchase Order
Release. Purchase Orders or Purchase Order Releases not acknowledged or
rejected by Company within such time will be deemed accepted by Company.

 

4.4                               Changes,
Cancellation and Modifications to Orders.

 

(a)                                  Changes.
Conexant
may submit documentation changes for Probe Services at any time. In the event
such change requires a substantial change in the scope of work, Company shall
promptly notify Conexant in writing as to whether Company
accepts such change, and, if accepted, of the impact of the change on cost and
delivery prior to implementing the change. Upon receipt of Conexant’s
written approval of the change, Company shall adjust the price and delivery for
the Probe Services to be performed and implement the requested change

 

(b)                                  Cancellations.
For each Purchase Order Release for which Probe Services has not yet been
started, Conexant
may cancel or modify a Purchase Order Release (in whole or in part) [...***...] by
delivering to Company a written notice of cancellation or modifications.

 

(c)                                  Rescheduling.
For each Purchase Order Release, Conexant may reschedule the
Probe Services [...***...] by delivering to Company a written notice rescheduling 

 

14

 

such Probe
Services, which schedule change shall be subject to Company’s approval
depending on Capacity and available resources

 

(d)                                  Holds
and Cancellations After Process Start. Conexant may put on
hold any Probe Services to be provided under a Purchase Order Release for up to
[...***...] Lots at a time; provided that no Lot will remain on hold for longer
than [...***...], after which the Probe Services shall be deemed cancelled and
Company shall, as Company’s sole remedy, invoice Conexant
for the Probe Services actually performed by Company prior to date of the hold.
If Conexant
cancels a Purchase Order Release (in whole or in part) after the date the Probe
Services have been started, then Company will either, at Conexant’s
sole discretion (i) not complete the cancelled Probe Services and hold the
wafers in a processing location designated by Conexant; or (ii) complete
the cancelled Probe Services. As Conexant’s sole
liability, and Company’s sole remedy, for such cancellation, Conexant
will pay to Company an amount equal to the price for the Probe Services actually
performed by Company prior to the date of cancellation.

 

(e)                                  Excess
Service Requirements. If Conexant’s demand
exceeds the Company’s Probe Services capacity in Newport Beach, Conexant
shall offer any available Probe Services capacity to Company at a Conexant
facility and assure this capacity is offered at the same cost or less then the
cost that would have been incurred by Company had the Probe Services been
performed at the Company.

 

4.5                               Removal
of Test Equipment from the Fab. The Parties acknowledge that certain probe
and test equipment owned by Conexant is located in the Newport Beach Fab,
and that Company is entitled to use and access such equipment pursuant to the
Transition Services Agreement between Conexant and
Company, dated March 12, 2002. Conexant may
not remove any of the test equipment from the Probe floor during the first
three (3) year period during the term of this Supply Agreement. At any
time following the third anniversary of this Supply
Agreement, Conexant
may deliver a written notice of removal to
Company with respect to any test device owned by it, and may remove such test
device after six (6) months following
receipt by Company of such notice. Notwithstanding the
foregoing, at any
time following the first anniversary of
this Supply Agreement, Conexant may deliver a written notice of
removal to
Company with respect to the HP 84000 equipment owned by it, and may remove such
HP 84000 equipment after three (3) months
following receipt by Company of such notice.

 

5.                                      DELIVERY
AND LOGISTICS.

 

5.1                               Delivery.
All Wafers delivered to Conexant shall be delivered F.O.B. the Company’s
facility at the Newport Beach Fab, as requested in the applicable Delivery Note.
Title and risk of loss shall pass from Company to Conexant
upon delivery, which shall be deemed made upon transfer of possession to the
shipping carrier or to storage if not shipped immediately. Conexant
shall be responsible for all freight, handling and insurance charges subsequent
to such delivery. Except in accordance with the applicable delivery terms set
forth in this Supply Agreement, Company shall not have any liability in
connection with shipment, nor shall the shipping carrier be deemed to be an
agent of Company.

 

15

 

5.2                               Storage.
Following delivery to Conexant, Company shall provide storage of up to
[...***...] Lots of completed Wafers [...***...], provided that
no Lot shall remain in such storage for longer than [...***...].

 

5.3                               Transition
Services Agreement  Shipping and
handling of finished Wafers will be in accordance with the applicable
provisions of the Transition Services Agreement between Conexant
and Company, dated March 12, 2002.

 

6.                                      PRICING;
CREDITS; AND PAYMENTS.

 

(a)                                  Wafers.
Company will invoice Conexant for all Wafers upon completion of
production of each Lot, at the applicable Wafer price calculated pursuant to Exhibit A
(Pricing) in effect on the date of the invoice, less any applicable Wafer
Credits (as defined in Section 6.2 (Wafer Credits) below). For Lots
of Engineering Wafers, Company will invoice Conexant at the end
of each month for all Moves completed with respect to such Engineering Wafers
during such month, and upon completion of production for Engineering Wafers for
any completed Moves not previously invoiced. Each invoice submitted to Company
shall specifically set forth the Wafer Credits, if any, applied to such invoice.
In Segments 1 through 6, Conexant shall pay any amounts due on such
invoices within [...***...] of the receipt of the invoice and in all subsequent
Segments such payments shall be made within [...***...] of receipt of the invoice. Notwithstanding
any other provision hereof, neither Party may offset any amounts owed by such
Party to the other Party against any amounts from such other Party, without
such other Party’s express written agreement to such offset in each case.

 

(b)                                  Probe
Services and Re-probe Services. Company will invoice Conexant
for Probe Services and any other services specified in this Supply Agreement on
a monthly basis. Pricing for such services shall be in accordance with Exhibit A
(Pricing). All invoice costs include, without limitation, the labor for
services actually performed, materials, material burden, and costs associated
with any changes approved in writing by Conexant

 

6.2                               Wafer
Credits. Company will provide to Conexant credits for
the purchase of Wafers from Company in the amount of Sixty Million U.S. Dollars (U.S. $60,000,000) to be used in
Segments 13 through 30 (the “Wafer Credits”).
No more than Twenty Million U.S. Dollars (U.S. $20,000,000) total in Wafer
Credits may be used within any consecutive six-Segment period. Such Wafer
Credits shall apply only to Wafers purchased by Conexant at the
Basic Price (or, during Quarters 9 through 11, at the Stepped Price). The
amount of the Wafer Credit applied to each such Wafer shall not exceed Four Hundred U.S. Dollars (U.S. $400) or the difference between
the Contract Price and the Basic Price, whichever is less. Conexant
may, at its discretion and at any time upon written notice to Company, allocate
any existing Wafer Credits between Conexant and any of
the Conexant
Spin-offs, provided that any Wafer Credits so
allocated shall remain subject to the provisions hereof. Upon expiration of this
Supply Agreement, if Conexant has any unused Wafer Credits remaining,
Conexant
will be permitted to apply such unused Wafer Credits against any purchase of
Wafers from Company during the two (2) year period immediately following
the date of termination; provided, however,
that the amount of the Wafer Credit applied to any one Wafer shall not exceed Four Hundred U.S. Dollars (U.S. $400) and the total amount of
Wafer Credits may not exceed Twenty Million U.S. Dollars (U.S. $20,000,000) in the
aggregate in such two year period. During the time
that Conexant has unused Wafer Credits available, Conexant may make a 

 

16

 

guaranteed
commitment (a “Guaranteed Commitment”) to Company for the following quantities
of Wafers:  (a) during Segments 13
through 18 (“Year 3”), a number of Wafers equal to no more than the equivalent
of [...***...] ([...***...]) MPD during Year 3; and (b) thereafter, a number of
Wafers equal to no more than the equivalent of [...***...] ([...***...]) MPD during
each year. Provided that the Guaranteed Commitment is made no later than six (6) months
in advance and covers the purchase of Wafers over a six (6) month period,
Company will accept and fulfill all Purchase Orders issued against the
Guaranteed Commitment.

 

6.3                               Costs.
Except as otherwise provided herein or agreed to in writing by the Parties,
each Party will be solely responsible for the costs and expenses it incurs in
performing its obligations under this Supply Agreement.

 

6.4                               Taxes.
Conexant
will be responsible for payment of any and all taxes or related governmental
charges (“Taxes”) imposed on or
arising from Conexant’s purchase of Wafers or Probe Services
under this Supply Agreement, excluding any Taxes on the net income or net worth
of Company, provided that such taxes are specifically identified by Company as
a separate line item on Company’s invoices provided pursuant to Section 6.1
(Pricing and Invoices). Company will provide Conexant with copies
of official receipts for the payment of any such Taxes, and any other
information and documents Conexant may reasonably request in order to
verify the payment of such amounts to the appropriate governmental entity.

 

7.                                      TRACKING;
REPORTING; AND AUDITS.

 

7.1                               Wafer
Tracking. All Wafers manufactured and delivered by Company to Conexant
shall have backward and forward trace ability sufficient to enable Company to
identify (i) the processes and materials used in the manufacture of such
Wafers; (ii) the batches or lots of such materials; and (iii) other
Wafers in the same or sequential lots. Such information shall be provided to Conexant,
upon Conexant’s
request.

 

7.2                               Reporting
Requirements. Company shall provide Conexant with the
reports specified in Exhibit G (Reports) in accordance with
frequency or schedule set forth therein. All such reports shall be in
writing and provided to Conexant in the form (e.g.,
electronic form) specified in Exhibit G or otherwise mutually
agreed to in writing by the Parties.

 

8.                                      WARRANTY
AND DISCLAIMER.

 

8.1                               Wafer
Warranty. For a period of [...***...] days from the date of delivery (the “Wafer
Warranty Period”), Company warrants that the Wafers, other than Risk Materials,
delivered hereunder will conform to the applicable Specifications, will be
manufactured in accordance with the Quality Standards, and will be free from
defects in material, manufacturing and workmanship. If, during the Wafer
Warranty Period, a breach of the warranty is discovered in the Wafers, then
Company shall promptly begin production to replace the defective Wafer and work
with Conexant
on a timely basis to determine the cause of such defect and appropriate
corrective measures. For the avoidance of doubt, a breach of the foregoing
warranty will not give rise to any termination provision under Section 12
(Term; Termination) provided that Company provides the foregoing express
remedy.

 

17

 

8.2                               Process
Failure. In the event that, (a) the Fab Yield of any Lot of Production Wafers
is [...***...] percent ([...***...] %) or
less of the applicable Planning Yield Assumption due to a Process Failure or (b) during
Segments 12 through 30, the Probe Yield of any Lot of Production Wafers
purchased at the Basic Price is [...***...] percent
([...***...] %) or less of the Current Average Probe Yield
(applied to the applicable Planning Yield Assumption) due to a Process Failure,
then Company will notify Conexant
and will dispose of such Lot and/or start a new Lot in accordance with Conexant’s
directions.

 

8.3                               Disclaimers.
EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS SUPPLY AGREEMENT,
NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED OR
OTHERWISE, IN CONNECTION WITH THIS SUPPLY AGREEMENT OR ANY WAFERS OR SERVICES
PROVIDED UNDER THIS SUPPLY AGREEMENT, AND EACH PARTY SPECIFICALLY DISCLAIMS THE
IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY, FITNESS FOR PARTICULAR
PURPOSE AND NONINFRINGEMENT.

 

9.                                      INDEMNIFICATION.

 

9.1                               Conexant Indemnification Obligations. Conexant
agrees to indemnify, hold harmless and defend at its own expense any liability
or cost associated with any claim, suit, or action (collectively, “Claims”) asserted or brought
against Company, its Affiliates and its subsidiaries, and their officers,
directors, employees, agents, and representatives by a third party to the
extent that such Claim alleges that Conexant’s
specifications or designs used in the production of Wafers infringe on any
patent, copyright, or any other intellectual property right (a “Conexant
Infringement Claim”). Conexant will pay
such damages awarded against Company by a court of competent jurisdiction, or
agreed to in a monetary settlement of any such Claim by Conexant,
to the extent that such damages are directly attributable to a Conexant
Infringement Claim. Conexant’s indemnification obligation will not
apply to Conexant
Infringement Claims to the extent they result from or are attributable to (a) any
modifications, combinations, or improvements made to the design or
specification as furnished to Company by Conexant that are
not agreed to by Conexant; or (b) use of the design or
specification by Company for any purpose other than providing Wafers or Probe
Services to Conexant.

 

9.2                               Company
Indemnification Obligations. Company agrees to indemnify, hold harmless and
defend at its own expense any liability or cost associated with any claim,
suit, or action (collectively, “Claims”)
asserted or brought against Conexant, a Conexant Spin-off,
or any of their respective Affiliates and subsidiaries, and their officers,
directors, employees, agents, and representatives by a third party to the
extent that such Claim alleges that Company’s use of technology, equipment,
processes, or methods to manufacture the Wafers or provide the Probe Services
infringes upon any patent, copyright, or any other intellectual property right
(a “Company Infringement Claim”). Company
will pay such damages awarded against Conexant by a court
of competent jurisdiction, or agreed to in a monetary settlement of any such
Claim by Company, to the extent that such damages are directly attributable to
a Company Infringement Claim. Company’s indemnification obligation hereunder
will not apply to Company Infringement Claims alleging infringement by any
technology, equipment, processes, or methods that were (a) in use by
Company upon the Effective Date; or (b) provided by Conexant
to Company. For the avoidance of doubt, if Company modifies, improves, or
combines any such technology equipment, 

 

18

 

processes, or
methods, the foregoing indemnification obligation will apply to the extent that
Company Infringement Claims are directed at the modifications, improvements, or
combinations, except for modifications, improvements, or combinations performed
at the direction of Conexant or its Affiliates.

 

9.3                               Conditions.
The obligations of the indemnifying Party (the “Indemnifying
Party”) under Section 9.1 (Conexant Indemnification
Obligations) or Section 9.2 (Company Indemnification Obligations)
with respect to a Conexant Infringement Claim or Company
Infringement Claim (as applicable) (an “Infringement Claim”)
are subject to the following conditions: (a) the indemnified Party (the “Indemnified Party”) must promptly
notify the Indemnifying Party in writing of such Infringement Claim; (b) the
Indemnifying Party must have sole control of the defense and settlement of the
Infringement Claim; and (c) the Indemnified Party must fully cooperate
with and provide reasonable assistance to the Indemnifying Party in the defense
and settlement of such Infringement Claim (which includes furnishing to the
Indemnifying Party all evidence in the possession of the Indemnified Party that
is relevant to such Infringement Claim). The Indemnifying Party will not accept
a settlement or stipulated judgment of any Conexant
Infringement Claim or Company Infringement Claim (as applicable) without the
prior written consent of the Indemnified Party, which consent will not be
unreasonably withheld. The Indemnifying Party will have no liability under this
Section 9 (Indemnification) for any costs, losses, liabilities, or
damages resulting from the willful acts of the Indemnified Party or any
settlement or compromise incurred or made by the Indemnified Party without the
Indemnifying Party’s prior written consent. The Indemnified Party will have the
right to participate, at its own expense, in the defense or settlement of the
Infringement Claim.

 

9.4                               Sole
and Exclusive Remedy. This Section 9 (Indemnification) states
the Indemnifying Party’s entire liability and the Indemnified Party’s sole
remedy with respect to the infringement, violation, or misappropriation of any
intellectual property rights of any third party arising from or relating to
this Supply Agreement, other than any rights to indemnification provided for in
the Contribution Agreement. Each Party’s obligations under this Section 9
(Indemnification) are subject to the limitations of liability set forth in Section 11
(Limitations of Liability).

 

10.                               CONFIDENTIALITY.
The Parties acknowledge that any nonpublic information disclosed or provided by
one Party to another Party in connection with this Agreement will be subject to
the Confidentiality Agreement between the Parties dated February 23, 2002.
The terms and conditions of this Supply Agreement (including the pricing
information contained herein) will be considered to be the Confidential
Information (as defined in the Confidentiality Agreement) of both parties.

 

11.                               LIMITATIONS
OF LIABILITY.

 

11.1                        Disclaimer.
EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS SUPPLY AGREEMENT, IN NO
EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR LOST PROFITS OR FOR
ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, OR EXEMPLARY DAMAGES ARISING
FROM THE SUBJECT MATTER OF THIS SUPPLY AGREEMENT, REGARDLESS OF THE TYPE OF 

 

19

 

CLAIM AND EVEN
IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

11.2                        Basis
of Bargain. EACH PARTY ACKNOWLEDGES THAT THE MUTUAL LIMITATIONS OF
LIABILITY CONTAINED IN THIS SECTION 11 (LIMITATIONS OF LIABILITY)
REFLECT THE ALLOCATION OF RISK SET FORTH IN THIS SUPPLY AGREEMENT AND THAT EACH
PARTY WOULD NOT ENTER INTO THIS SUPPLY AGREEMENT WITHOUT THESE LIMITATIONS ON
LIABILITY.

 

12.                               TERM;
TERMINATION.

 

12.1                        Term  This Supply Agreement will take effect on the
Effective Date and will remain in effect for a period of five (5) years
from the Effective Date (the “Initial Term”),
unless earlier terminated in accordance with this Section 12 (Term;
Termination). Following the Initial Term, this Supply Agreement may be renewed
for additional one-year renewal terms (each a “Renewal
Term”), upon mutual agreement of the Parties.

 

12.2                        Termination.
This Supply Agreement may be terminated at any time as follows:

 

(a)                                  by
written agreement of the Parties;

 

(b)                                  by
either Party, at its discretion upon written notice to the other Party, if the
other Party materially breaches any provision of this Supply Agreement and such
breach is not cured within sixty (60) days after written notice of such breach
is furnished by the non-breaching Party;

 

(c)                                  by
either Party, at its discretion upon written notice to the other Party, if
within any period of twelve (12) months there are five (5) or more
material breaches by the other Party that would constitute grounds for termination
pursuant to this Section 12.2 (without giving effect to cure
periods), regardless of whether such breaches were cured within the applicable
cure periods; or

 

(d)                                  by
either Party, at its discretion, if (i) the other Party becomes insolvent,
admits in writing its inability to pay its debts as they become due, or files
or has filed against it any proceeding in bankruptcy or for reorganization
under any federal bankruptcy law or similar state law, or has any receiver
appointed for all or a substantial part of such Party’s assets or business, or
makes any assignment for the benefit of its creditors, or enters into any other
proceeding for debt relief, and such proceeding is not dismissed within sixty
(60) days of filing; (ii) the other Party dissolves, liquidates, or
institutes any proceedings for the liquidation or winding up of its business.

 

12.3                        Effect
of Termination. The rights and obligations under Sections 1
(Definitions), 6.2 (Wafer Credits), 8 (Warranty and Disclaimer), 9 (Indemnification),
10 (Confidentiality), 11 (Limitations of Liability), 12.4 (Effect
of Termination), and 13 (General) will survive termination or expiration
of this Supply Agreement for any reason.

 

20

 

13.                               GENERAL.

 

13.1                        Agency.
Under this Supply Agreement (i) each Party will be deemed to be an
independent contractor and not an agent, joint venturer, or representative of
the other Party; (ii) neither Party may create any obligations or
responsibilities on behalf of or in the name of the other Party; and (iii) neither
Party will hold itself out to be a partner, employee, franchisee,
representative, servant, or agent of the other Party.

 

13.2                        Governing
Law; Venue and Jurisdiction. This Supply Agreement will be governed by,
subject to, and construed in accordance with the internal laws of the State of
Delaware, as such laws apply to contracts between Delaware residents performed
entirely within Delaware. The Parties agree that the United Nations Convention
on Contracts for the International Sale of Goods will not apply to this Supply
Agreement.

 

13.3                        Dispute
Resolution. The Parties will act in good faith and use commercially
reasonable efforts to promptly resolve any claim, dispute, controversy or
disagreement arising out of or relating to or in connection with this Supply
Agreement or the breach, termination or validity hereof (each a “Dispute”) between the Parties under
or related to this Supply Agreement or any of the transactions contemplated
hereby.

 

(a)                                  Upon
the written request (a “Request”)
of a Party, the other Party shall commence good faith negotiations with the
goal of resolving the Dispute on a mutually satisfactory basis. If the Dispute
has not been resolved to the satisfaction of the Parties within fifteen (15)
days after the date on which the Request is delivered, the Dispute shall
immediately be referred to senior officers of each Party. The senior officers
of each Party (e.g., chief executive officer
and/or chief executive officer of international business) shall meet immediately,
and in no case later than thirty (30) days after the date on which the Request
is delivered, for a minimum of two (2) Business Days with a mutually
selected mediator and attempt in good faith to negotiate a resolution of the
Dispute. If the Parties are unable to resolve the Dispute within thirty-five
(35) days after the date on which the Request is delivered, then any relevant
Party may submit the Dispute to arbitration as the exclusive means of resolving
it in accordance with the procedures set forth in this Section 13.3.

 

(b)                                  Except
as otherwise specified in this Section 13.3, any Dispute not
resolved through the procedure set forth above shall be finally settled by
arbitration in accordance with the International Rules and Procedures of
the American Arbitration Association (the “Arbitration Rules”),
which are deemed to be incorporated by reference herein except as otherwise
modified herein.

 

(c)                                  The
arbitration situs shall be Wilmington, Delaware, and the laws of the State of
Delaware shall be applied.

 

(d)                                  In
the event of arbitration, there shall be one arbitrator who shall be jointly
nominated by such parties. If the Parties fail to so nominate the arbitrators
within thirty (30) days from the date when the Dispute is submitted to
arbitration pursuant to this Section 13.3, at the request of any
Party, the arbitrator(s) shall be appointed in accordance with the Arbitration
Rules.

 

21

 

(e)                                  The
arbitration hearing shall commence no later than ninety (90) days following the
appointment of the sole arbitrator, as the case may be, and the final award
shall be rendered no later than thirty (30) days following the close of the
hearing.

 

(f)                                    Consistent
with the expedited nature of arbitration, each Party will, upon the written
request of the other Party, provide the other with copies of documents relevant
to the issue raised by any claim or counterclaim. Other discovery may be
ordered by the arbitrator to the extent the arbitrator deems additional
discovery relevant and appropriate, and any dispute regarding discovery,
relevance or scope thereof, shall be determined by the arbitrator, which
determination shall be conclusive.

 

(g)                                 By
agreeing to arbitration, the Parties do not intend to deprive any court of its
jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment,
injunctive or other equitable relief or an order in aid of arbitration
proceedings and the enforcement of any award. Without prejudice to such
provisional remedies in aid of arbitration as may be available under the
jurisdiction of a national court, the arbitral tribunal shall have full
authority to grant provisional remedies and to award damages for the failure of
any party to respect the arbitral tribunal’s orders to that effect.

 

(h)                                 The
award shall be final and binding upon the Parties, and shall be the sole and
exclusive remedy between the Parties regarding any claims, counterclaims,
issues, or accounting presented to the arbitral tribunal in connection with the
Dispute. Judgment upon any award may be entered in any court having competent
jurisdiction thereof.

 

(i)                                    The
costs of the arbitration shall be borne as determined in accordance with the
Arbitration Rules; provided, however,
that to the extent a Party is non-prevailing or unsuccessful on a claim in an
arbitration proceeding under this Section 13.3 as determined by the
arbitrator, that Party shall pay the prevailing or successful Party’s costs and
expenses incurred in connection with the arbitration of that Dispute, including
attorneys’ fees and arbitration expenses, whether or not such Dispute is
prosecuted to award or judgment.

 

(j)                                    Subject
to the receipt of any applicable governmental approval, any monetary award
shall be made and promptly payable in U.S. dollars, if due in U.S. dollars,
free of any deduction or offset, and the arbitral tribunal shall be authorized
in its discretion to grant pre-award and post-award interest at commercial
rates. The arbitral tribunal shall have the authority to award any remedy or
relief proposed by the claimants or respondents pursuant to this Supply
Agreement, including without limitation, a declaratory judgment, specific
performance of any obligation created under this Supply Agreement or the
issuance of an injunction.

 

13.4                        Injunctive
Relief. Company acknowledges and agrees that Conexant
would suffer irreparable harm for which monetary damages would be an inadequate
remedy if there were a willful or intentional breach of any obligation of
Company to supply Wafers ordered against a Wafer Volume Commitment hereunder. Accordingly,
Company acknowledges and agrees that equitable relief, including specific
performance, would be appropriate to protect Conexant’s rights
and interests if such a breach were to arise, were threatened, or were
asserted, and that Conexant shall be entitled to obtain such
equitable relief without proving any additional elements.

 

22

 

13.5                        Third-Party
Beneficiaries. Except for Conexant Spin-offs,
there are no third-party beneficiaries of this Supply Agreement. Except for the
pricing established under this Supply Agreement, and the rights of Conexant
Spin-offs to purchase Wafers from Company at such pricing, no provision of this
Supply Agreement, express or implied, is intended or will be construed to
confer upon or give to any customer or other person other than the Parties any
rights, remedies, or other benefits under or by reason of this Supply
Agreement.

 

13.6                        Compliance
with Law. The Parties will at all times comply with all applicable foreign,
U.S., state, and local laws, rules and regulations relating to the
execution, delivery and performance of this Supply Agreement. Each Party agrees
that it will not export or reexport, resell, ship, or divert or cause to be
exported or reexported, resold, shipped, or diverted directly or indirectly any
software, documentation, or technical data incorporating any software to any
country for which the government (or any agency thereof) of the United States,
or any foreign sovereign government with competent jurisdiction requires an
export license or other governmental approval without first obtaining such
license or approval.

 

13.7                        Force
Majeure. Neither Party shall be liable for failure or delay in performance
of its obligations under this Supply Agreement to the extent such failure or
delay is caused by an act of God, act of a public enemy, war or national
emergency, rebellion, insurrection, riot, epidemic, quarantine restriction,
fire, flood, explosion, storm, earthquake, interruption in the supply of
electricity, power, or energy, or other catastrophe, terrorist attack, labor
dispute or disruption of such Party’s suppliers, or other event beyond the
reasonable control of such Party. If a Party’s performance under this Supply
Agreement is affected by a force majeure event, such Party shall give prompt
written notice of such event to the other Party and shall at all times use its
reasonable commercial efforts to mitigate the impact of the force majeure event
on its performance under this Supply Agreement. In the event of a force majeure
event as described in this Section that affects either or both Parties’
ability to perform under this Supply Agreement, the Parties agree to cooperate
in good faith in order to resume the transactions contemplated by this Supply
Agreement as soon as commercially possible to the extent commercially
reasonable.

 

13.8                        Amendment;
Later Agreement. This Supply Agreement may not be amended, modified, or
supplemented by the Parties in any manner, except by an instrument in writing
signed by Conexant
and Company and specifically reciting that it amends this Supply Agreement. No
purchase order or acknowledgement will amend this Supply Agreement. All matters
designated herein as subject to agreement of the Parties must be agreed upon in
a writing signed by authorized representatives of both Parties for such
agreement to be effective.

 

13.9                        Notices.
Any notice, consent, approval, or other communication intended to have
legal effect to be given under this Supply Agreement (other than a purchase
order or invoice) must be in writing and will be delivered (as elected by the
Party giving such notice): (i) personally; (ii) by postage prepaid
registered or certified airmail, return receipt requested; (iii) by
express courier service; or (iv) by facsimile with a confirmation copy
deposited prepaid with an express courier service. Unless otherwise provided
herein, all notices will be deemed to have been duly given on: (y) the date of
receipt (or if delivery is refused, the date of such refusal) if delivered
personally, by mail, or by express courier; or (z) one (1) business day
after receipt by telecopy if the telecopy was accompanied by the mailing of the
notice via mail or courier service. Each Party may change its address for
purposes hereof on not less than three (3) days’ prior notice to the other

 

23

 

Party. Notice
hereunder will be sent to the following addresses (with a copy to the legal
department):

 

	
  If to Conexant, to:

  	
   

  	
  If to Company, to:

  
	
   

  	
   

  	
   

  
	
  Conexant Systems, Inc.

  

  4311 Jamboree Road

  

  Newport Beach, CA 92660

  

  Attn: General Counsel 

  

  Telecopy: (949) 483-9576

  	
   

  	
  Specialtysemi, Inc.

  

  c/o The Carlyle Group

  

  101 S. Tryon Street, 25th Floor

  

  Charlotte, N.C. 28280

  

  Attn: Claudius E. Watts, IV

  

  Telecopy: (704) 632-0299

  

 

13.10                 Assignment.
Except as otherwise expressly provided in this Supply Agreement, neither
Party shall be permitted to assign any of its rights or delegate any of its
obligations under this Supply Agreement without the prior written consent of
the other Party; except that (i) Company may, without such consent, assign
all such rights to any Affiliate controlling Company or to any Person providing
cash financing to the Company as collateral security for such financing
provided that no such assignment shall relieve Company from any of its
obligations hereunder, (ii) Conexant may,
without such consent, assign all such rights to any Affiliate controlling Conexant,
provided that no such assignment shall relieve Conexant from any of
its obligations hereunder, and (iii) either Party may, without the other
Party’s consent, assign all rights to any entity which acquires, directly or
indirectly, all or any substantial portion of the assets or securities of such
Party. Any unauthorized assignment or transfer shall be null and void. This
Supply Agreement shall be binding upon and inure solely to the benefit of each
Party and its successors and permitted assigns.

 

13.11                 Waiver.
If a Party fails to insist on performance of any of the terms and conditions,
or fails to exercise any of its rights or privileges of this Supply Agreement,
such failure will not constitute a waiver of such terms, conditions, rights, or
privileges.

 

13.12                 Severability.
If the application of any provision or provisions of this Supply Agreement
to any particular facts or circumstances is held to be invalid or unenforceable
by any court of competent jurisdiction, then: (i) the validity and
enforceability of such provision or provisions as applied to any other
particular facts or circumstances and the validity of other provisions of this
Supply Agreement will not in any way be affected or impaired thereby; and (ii) such
provision or provisions will be reformed without further action by the Parties
and only to the extent necessary to make such provision or provisions valid and
enforceable when applied to such particular facts and circumstances.

 

13.13                 Counterparts
and Facsimile  This Supply Agreement
may be executed in any number of counterparts, each of which when so executed
and delivered will be deemed an original, and such counterparts together will
constitute one and the same instrument. The Parties intend that each Party will
receive a duplicate original of the counterpart copy or copies executed by it. For

 

24

 

purposes hereof, a facsimile
copy of this Supply Agreement, including the signature pages hereto, will be
deemed to be an original.

 

13.14                 Rules
of Construction.. As used in this Supply Agreement, all terms used in the singular
will be deemed to include the plural, and vice versa, as the context may
require. The words “hereof,” “herein,” and “hereunder” refer to this Supply
Agreement as a whole, including the attached exhibits, as the same may from
time to time be amended or supplemented, and not to any subdivision in this
Supply Agreement. When used in this Supply Agreement, unless otherwise
expressly stated, “including” means “including, without limitation” and “discretion”
means sole discretion. Unless otherwise expressly stated, when a Party’s
approval or consent is required under this Supply Agreement, such Party may
grant or withhold its approval or consent in its discretion. References to “Section”
or “Exhibit” will be to the applicable section or exhibit of this Supply
Agreement. Descriptive headings are inserted for convenience only and will not
be utilized in interpreting the Supply Agreement. This Supply Agreement has
been negotiated by the Parties and reviewed by their respective counsel and
will be fairly interpreted in accordance with its terms and without any strict
construction in favor of or against either Party.

 

13.15                 Schedules
and Exhibits  Conexant hereby represents and warrants to
Company that the information related to the fabrication processes conducted at
the Newport Beach Fab provided by Conexant in Exhibit
B, Schedule 2 (the “Fabrication Information”) is materially true and
correct as of the Effective Date. If the Fabrication Information is later found
not to have been materially true and correct as of the Effective Date in a
manner such that the pricing for any Wafer did not accurately reflect the
actual number of Moves required for its fabrication, Conexant
will work together in good faith with Company to recalculate a new price based
upon corrected assumptions. The Parties will determine whether there were any
amounts overpaid or underpaid for purchases previously conducted pursuant to
this Supply Agreement as a result of using the original price, and settle any
underpayments or overpayments within ninety (90) days of such determination. The
recalculated price will apply to all prospective purchases of affected Wafers
under this Supply Agreement. The foregoing states Company’s sole and exclusive
remedy, and Conexant’s
entire liability, for breach of the representation and warranty set forth in
this Section 13.15.

 

13.16                 Entire
Agreement. As to the subject matter hereof: (i) this Supply Agreement,
including its exhibits, sets forth the entire agreement between Conexant
and Company; (ii) no promise, inducement, understanding, or agreement not
expressly contained herein has been made; and (iii) this Supply Agreement
merges and supersedes any and all previous agreements, understandings, and
negotiations between the Parties concerning the subject matter hereof.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

25

 

IN WITNESS
WHEREOF, the parties have executed this Supply
Agreement as of the Effective Date by the undersigned duly authorized
representatives of each party.

 

	
  CONEXANT SYSTEMS, INC.,

  	
  SPECIALTYSEMI, INC.,

  
	
  a Delaware corporation

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  \s\ Dwight Decker

  	
   

  	
  By:

  	
  \s\ Claudius E. Watts IV

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Dwight Decker

  	
   

  	
  Name:

  	
  Claudius E. Watts IV

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Chief Executive Officer

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
										

 

26

 

EXHIBIT A - PRICING

 

WAFER PRICING.

 

Contract Price. For
Wafers purchased by Conexant to fulfill its Wafer Volume Commitment
and, except as set forth in this Supply Agreement, for all additional Wafers
purchased by Conexant during Segments 1-6 and 7-12, the price
of the Wafers shall be calculated by multiplying the Moves in Exhibit B
- Schedule 2 by the Fab Cost per Move set forth below, plus the cost
of the raw wafer (the “Contract Price”).

 

Fab Cost per Move                                                                                                                                             $[...***...]
per probed wafer

 

Basic Price. For
Wafers purchased by Conexant subsequent to Segment 18, and as
otherwise set forth in this Supply Agreement, the price of the Wafers shall be
the “Basic Price,” determined as set
forth below, less any applicable Wafer Credit. For Wafers purchased by Conexant
in excess of the Wafer Volume Commitment during Segments 13 through 18, the
price of the Wafers will increase from the Contract Price to the Basic Price on
a stepped basis, as further described in Section 2.1(d)(i).

 

The Basic Price for each type of Wafer shall be determined
upon the Effective Date and recalculated every six (6) months thereafter
during the term hereof, and shall be the lesser of (a) the
most favorable per-Wafer price offered by Company to any of its customers for
comparable volumes and schedules during the six (6) months immediately
preceding the date of calculation; or (b) the most favorable Wafer price
offered by [...***...] over the previous six (6) months for Wafers
manufactured using similar process technology for comparable volumes and
comparable schedules. If no similar Wafers or terms provided by these
manufacturers can be found, (y) for Specialty Wafers, Company will determine
the Basic Price based on the average price per Move as sold to all customers
(other than, Conexant, Conexant Affiliates,
or Conexant
Spin-offs) for the family of Company’s Specialty Wafer products most comparable
to the Wafers in question; and (z) for Non-Specialty Wafers, the Parties will
agree upon a reasonable Basic Price.

 

Wafer Rework Pricing. Conexant
shall reimburse Company for any rework requested by Conexant
in an amount determined by multiplying the applicable
Contract or Basic Price for the completed Wafers times
a ratio determined by dividing the number of additional Moves required as a
result of such rework by the total number of moves required for processing the
Wafer, as set forth in Exhibit B – Schedule 2.

 

27

 

PROBE SERVICES AND RE-PROBE SERVICES.

 

Cost (based on FY02 standards)

 

	
   

  	
   

  	
  $/hour

  	
   

  
	
  Platform

  	
   

  	
  JV Tester

  	
   

  	
  Non-JV Tester

  	
   

  
	
  Trillium

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
   

  	
  [...***...]

  	
   

  
	
  Synchro

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
   

  	
  [...***...]

  	
   

  
	
  Catalyst

  	
   

  	
  $

  	
  [...***...]

  	
   

  	
  $

  	
   

  	
  [...***...]

  	
   

  

 

THESE COSTS ARE BASED
ON ANNUAL SPEND. THE ACTUAL COST WILL BE THE GREATER OF THIS NUMBER OR THE
ACTUAL SPEND RECONCILED AT THE END OF EACH SEGMENT. THE CURRENT COST PER PROBE
HAS BEEN CALCULATED AT $[...***...] ON AVERAGE.

 

28

 

EXHIBIT B
- WAFER VOLUME COMMITMENTS

 

SCHEDULE 1

 

Conexant will submit Purchase Orders
to Company for the manufacture of Wafers in volumes sufficient to sustain the
MPD purchases as follows, averaged over 364 days:  

 

	
  Period

  	
   

  	
  # of Work Days

  	
   

  	
  MPD

  	
   

  
	
  I
  (first 12 calendar month period from Effective Date)

  	
   

  	
  364

  	
   

  	
  [...***...]

  	
   

  
	
  II
  (second 12 calendar month period from Effective Date)

  	
   

  	
  364

  	
   

  	
  [...***...]

  	
   

  
	
  III
  (third 12 calendar month period from Effective Date)

  	
   

  	
  364

  	
   

  	
  [...***...]

  	
   

  

 

Conexant’s current fifteen (15) month
forecast is attached as Exhibit B – Schedule 1. Based on the
forecasted demand and the mix of Wafers specified therein, the average
conversion rate is [...***...] Moves
per Wafer. Conexant’s
Wafer Volume Commitments, in MPD, are calculated as follows:

 

	
  Period I:

  	
   

  	
  [...***...] WSPD x [...***...] = [...***...] MPD

  
	
   

  	
   

  	
   

  
	
  Period II:

  	
   

  	
  [...***...] WOPD x [...***...] = [...***...] MPD

  
	
   

  	
   

  	
   

  
	
  Period III:

  	
   

  	
  [...***...] WOPD x [...***...] = [...***...] MPD

  

 

These Wafer Volume Commitments include up to [...***...]
Engineering Wafers.

 

For determining compliance with the Wafer
Volume Commitments, the number of MPD utilized by Conexant will be determined by converting the total quantity and
type of Wafers purchased by Conexant during the calendar year to moves based on
the conversion table attached as Exhibit B – Schedule 2 and
dividing this number by 364 days. The Parties agree that Wafers that are
delivered after the end of the Segment in which the original delivery date was
scheduled as agreed by the Parties through no fault of Conexant shall count
toward the Wafer Volume Commitment for the Segment in which the original
delivery date was scheduled as agreed by the Parties.

 

29

 

EXHIBIT B

 

SCHEDULE 2

 

WAFER MOVES TABLE

 

[...***...]

 

30

 

EXHIBIT C
— RULES OF CHANGE, OPERATION AND RELEASE PROCEDURES

 

[See Attached]

 

[...***...]

 

31

 

EXHIBIT D
– NEWPORT BEACH FAB CAPACITY

 

Maximum Capacity:

 

	
  Process Family

  	
   

  	
  Nwpt Bch

  	
   

  
	
  8” Equiv. WSPD

  	
   

  	
  Cap. WSPD

  	
   

  
	
  1+ micron

  	
   

  	
  [...***...]

  	
   

  
	
  0.8 um

  	
   

  	
  [...***...]

  	
   

  
	
  0.6 um

  	
   

  	
  [...***...]

  	
   

  
	
  0.5 um

  	
   

  	
  [...***...]

  	
   

  
	
  0.35 um

  	
   

  	
  [...***...]

  	
   

  
	
  0.25 um

  	
   

  	
  [...***...]

  	
   

  
	
  0.18 um & below

  	
   

  	
  [...***...]

  	
   

  
	
  Bipolar

  	
   

  	
  [...***...]

  	
   

  
	
  BiCMOS

  	
   

  	
  [...***...]

  	
   

  
	
  SiGe BiCMOS

  	
   

  	
  [...***...]

  	
   

  
	
  Subtotal WSPD

  	
   

  	
  [...***...]

  	
   

  
	
  ELOTS

  	
   

  	
  [...***...]

  	
   

  
	
  Total WSPD

  	
   

  	
  [...***...]

  	
   

  
	
  Total int vs. Ext

  	
   

  	
   

  	
   

  

 

32

 

EXHIBIT E
– WAFER CYCLE TIMES

 

The following table sets forth the average Wafer process cycle time for
the Newport Beach Fab:

 

	
  PROCESS

  	
   

  	
  Days Per
  Layer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

All new or
unidentified processes will be added to this table once at least three (3) lots
have been manufactured to set an average cycle time. THESE CYCLE
TIMES ARE FOR PLANNING PURPOSES ONLY AND NOT AN OBLIGATION FOR DELIVERY, BUT
THE COMPANY WILL WORK TO MEET THESE CYCLE TIMES.

 

33

 

EXHIBIT F
- QUALITY SPECIFICATIONS

 

IX.                                RELEASED
MATERIAL SPECIFICATIONS REPORT

 

A.                                   Released Material Specifications as
of 10-jan-2002 11:04 PM

 

[...***...]

 

34

 

X.                                    RELEASED WAFER
PROCUREMENT REPORT

 

A.                                    Released Wafer Procurements as of 10-jan-2002
11:03 PM

 

[...***...]

 

35

 

EXHIBIT G
- DELIVERY AND LOGISTICS

 

[To be expanded as necessary.]

 

Processing Requirements.

 

Company shall provide the following processing for all wafers:

 

1.              Handling and
packaging for delivery (packaging specification attached as Exhibit G –
Schedule 1).

 

2.              Box and hold (if
specified).

 

3.              Preparing
required shipping paperwork (airway bill, export documentation).

 

4.              Customs
clearance documentation, packing list, etc.

 

5.              Export control
clearance.

 

6.              Posting delivery
in [...***...].

 

7.              Contacting the
specified carrier.

 

8.              Handing product
off to the specified carrier at the appropriate location.

 

9.                                      Tape
and reel (when specified).

 

Handling and Receiving Services. Company
will provide handling and receiving services to Castle at the Newport Beach Fab
including the following:

 

1.                                      Returned
goods material authorization (RMA) receipt, notification and delivery to Castle
quality control (per log into the appropriate information system).

 

2.                                      Receive,
count, notify and deliver documents and goods delivered to the subject shipping
locations for Castle personnel and functions.

 

3.                                      Receive
Castle production goods (wafers, die, and/or packaged parts) and either: (a) transfer
to another production location; (b) enter into Company’s Probe Services;
or (c) enter into Castle finished goods (system) and store in a secure,
physically separate and secure finished goods area as specified below.

 

Finished Goods Storage. Company
will provide finished goods storage for Castle on consistent with the
following:

 

1.              Product storage
consistent with IEEE (spec#?).

 

2.              Product stored
in a separate and secure storage location.

 

36

 

3.              Inventory
quantity maintained accurately in the appropriate system ([...***...]) including
periodic cycle counts as required to maintain accuracy.

 

37

 

EXHIBIT H
- REPORTS

 

Company shall prepare and provide the following reports to Castle. Such
reports shall be comparable in form, substance, and content to those reports
prepared by the Newport Beach Fab as of the Effective Date and shall be
provided in accordance with the schedule and in the form specified below:

 

1.              Work in process
(WIP) reports – daily; electronic form

 

2.              E-Test (WAT/PCM)
data – upon request; electronic form

 

3.              In-line control
data – upon request; electronic or paper form

 

4.              Yield trend
charts – upon request; electronic or paper form

 

5.              Customer line
item performance (CLIP) – upon request; electronic or paper form

 

6.              On-time delivery
report – weekly; electronic form

 

7.              Commitment to
forecast – monthly; electronic form

 

8.              Scrap reports –
daily; electronic form

 

9.              Capacity
availability – quarterly; electronic form

 

10.       PPM levels – upon
request; electronic form

 

11.       Probe data – upon
request; electronic or paper form

 

12.       Test
data – upon request; electronic form

 

13.       SPC
(Cp/Cpk) data for key nodes – upon request; electronic form

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]