Document:

Consulting Agreement - Nathan Sarkisian

 Exhibit 10.3 
 

 
 April 30, 2009 
 Mr. Nathan Sarkisian 
 [address] 
 Dear Nathan: 
 Following is a letter of agreement, to cover the terms and agreement of our relationship starting May 20, 2009. If the
outlined terms are acceptable to you, please sign below. 
 Scope of engagement: 
 You are being engaged as the interim Chief Financial Officer of Spansion for an expected term of 6 months. The terms and conditions of this agreement will be
valid until termination of the agreement by either party. This agreement can be terminated by either party by written notice. All fees and all reimbursable expenses incurred prior to the date of termination shall be paid by Spansion. Except as set
forth in the previous sentence, you agree that you will not be entitled to any payments, including, without limitation, severance, upon termination of this agreement. 
 Fees and Fee Structure: 
 You will be paid a monthly fee of $40,000. You agree to
supply Spansion with a monthly invoice and any required forms such as W-9 before any payment can be made. You agree that you are not eligible to participate in any of Spansion’s employee benefit programs, including, without limitation, any
medical, paid time off, vacation or other similar programs or benefits. You have confirmed that you presently have your own health insurance. You further acknowledge that you are not entitled to any incentive, performance-based or other compensation
except as set forth above. 
 Expenses: 
 Out of pocket expenses for required travel and other necessary business expenses will be reimbursed at actual cost in accordance with Spansion’s current reimbursement policies. 
 Confidentiality and Remedies: 
 All
information provided by Spansion to you (collectively, “Confidential Information”) shall be used by you solely for the purpose of providing the services under this Agreement and shall be kept confidential except to the extent that you may
be required to disclose such information to a court, governmental or regulatory agency, stock exchange or similar body, or as otherwise required by law or judicial process. In the event that you are required or requested to disclose such
information, you shall immediately give Spansion notice of such fact so that Spansion has an opportunity to seek a protective order with respect to the disclosure of such information. You also agree to cooperate with Spansion regarding
Spansion’s efforts, if any, to protect against such disclosure and/or obtain a protective order narrowing the scope of such disclosure and/or use of such Confidential Information. 
 It is understood and agreed that money damages may not be a sufficient remedy for any breach of this Agreement, and that Spansion shall be entitled to obtain specific performance and injunctive or other
equitable relief as a remedy for any such breach. Such remedy shall not be deemed to be the exclusive remedy for breach of this Agreement, but shall be in addition to all other remedies available at law or equity to Spansion. 
 Spansion Inc. 
 915 DeGuigne Drive,
P.O. Box 3453 
 Sunnyvale, CA 94088-3453, USA 
 1-866-SPANSION 
 Web: www.spansion.com 

	 Page 2 
	 April 30, 2009 

 You agree to sign the standard Spansion confidentiality agreement and abide by all company policies during your engagement. 
 Indemnification: 
 Spansion agrees to indemnify you in accordance with the
indemnification agreement provided to its other executive officers. The parties will enter into an indemnification agreement upon the start of your engagement. 
 Attorney’s Fees: 
 If there is any legal action, arbitration or other proceeding
between arising from or based on this Agreement, the unsuccessful party to such action or proceeding shall pay to the prevailing party all costs and expenses, including reasonable attorney’s fees, incurred by such prevailing party in such
action or proceeding and in any appeal in connection therewith. if such prevailing party recovers a judgment in any such action, proceeding or appeal, such costs, expenses and attorneys’ fees shall be included in and as a part of such judgment.

 Governing law 
 This Agreement shall
be governed by and construed in accordance with the laws of the State of California. 
 As you know, Spansion and certain of its affiliates are
presently debtors in cases pending under chapter 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware. You acknowledge and agree that this agreement might require the approval of such bankruptcy court and,
if Spansion determines that it does require the approval of such bankruptcy court, it shall not become effective, and Spansion shall not have any obligation hereunder, until such approval is obtained. 
 Please call me if you have any questions or concerns. 
  

	
	Best regards,
	
	/s/ John Kispert
	 John Kispert
 President
 Spansion

	
	/s/ Nathan Sarkisian
	 Signed: Nathan Sarkisian
  
 Date: April 30, 2009Amd. No. 3 to the Amended and Restated Foundry Agreement

 Exhibit 10.4 
 AMENDMENT NO. 3 
 TO THE 
 AMENDED AND RESTATED FOUNDRY AGREEMENT 
 DATED SEPTEMBER 28, 2006 
 THIS AMENDMENT NO. 3 (this “Amendment”) to the
Amended and Restated Foundry Agreement entered into as of September 28, 2006, and as amended effective June 19, 2008, and as amended a second time effective December 31, 2008 (the “Agreement”), by and between Spansion, Inc.,
a Delaware corporation, Spansion Technology, Inc., a Delaware corporation, and Spansion LLC, a Delaware limited liability company, solely in their capacities as guarantors of Spansion’s obligations hereunder and under the Agreement
(“Guarantors”), Spansion Japan Limited, a Japanese corporation (“Spansion”), and Fujitsu Limited, a Japanese corporation (“Fujitsu”), and assigned by Fujitsu to Fujitsu Microelectronics Limited, a Japanese corporation
(“FML”), effective March 21, 2008, is made and entered into as of June 30, 2009 (the “Amendment Date”). 
 Whereas, Spansion and FML wish to further amend the Agreement. 
 Now, therefore, it is agreed that the Agreement shall be modified as
follows: 
 1. Pursuant to Section 16.1.2 of the Agreement, Spansion and FML hereby agree that the Term of the Agreement
shall be extended to June 26, 2011 (the “Agreement Term”). 
 2. Notwithstanding anything to the contrary set
forth in Sections 2.6.1 through 2.6.6 of the Agreement, FML and Spansion hereby agree that the Subsequent Period Commitment and Subsequent Period Price for the second, third, and fourth Quarters of 2009, each Quarter of 2010, and the
first and second Quarters of 2011, are as defined in Exhibit K attached to this Amendment. Spansion and FML further agree that except as otherwise expressly provided in Exhibit K, the Subsequent Period Remedies for the second, third, and fourth
Quarters of 2009, each Quarter of 2010, and the first and second Quarters of 2011, shall remain as set forth in Sections 2.2 and 2.3 and Exhibit J of the Agreement. 
 3. FML and Spansion hereby acknowledge that any commitment by FML contained in this Amendment will be conditioned upon that FML and its Affiliates may continue to purchase flash memory products from
Spansion and to market, sell or otherwise distribute such products through the end of the Agreement Term, similarly as FML and its Affiliates do as of the Amendment Date. If Spansion (a) agrees in writing to amend the agreement between Spansion
and FML or its Affiliates with respect to such purchase, marketing, sales or distribution of the flash memory products such that Spansion will no longer undertake to supply such products to FML and its Affiliates pursuant thereto, or (b) ceases
to have the capacity to supply such products to FML and its Affiliates on account of its dissolution or liquidation or any other equivalent event that substantially and adversely affects such capacity of Spansion, and it is so detemined that one of
the

  

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Guarantors may sell or distribute such products directly to FML or its Affiliates, FML may, through discussion with Spansion and the Guarantors, (i) shorten the payment terms in the
Agreement and/or (ii) transact directly with the Guarantors for the foundry wafer business as contemplated in the Agreement and this Amendment. However, in the event FML shortens the payment terms in the Agreement pursuant to this provision to
shorter than the then-current payment terms in the Amended and Restated Distribution Agreement, dated December 21, 2005, and as amended effective October 1, 2007, September 30, 2008, January 15,
2009, February 23, 2009, and April 23, 2009, originally entered into between Spansion, Inc. and Fujitsu, and succeeded to by FML (the “Distribution Agreement”), FML hereby agrees that the Guarantors shall have the right to
shorten the payment terms under the Distribution Agreement to the same level with such shorter terms set by FML for the Agreement. 
 4. All capitalized terms used but not defined in this Amendment shall have the meanings assigned to such terms in the Agreement. 
 5. All terms and conditions of the Agreement not specifically modified by this Amendment shall remain unchanged and in full force and effect. In particular, the following standard operating procedures
will continue to be effective and followed by Spansion and FML: 
  

	 	a.	Spansion shall provide FML with the Wafer Demand Plan at least fifty-five (55) days prior to the commencement of each Quarter, as provided in Section 5.2 of
the Agreement. 

  

	 	b.	Upon acceptance of a QBP by FML, Spansion may not request any changes to such accepted QBP unless otherwise expressly permitted under Section 5.4 of the Agreement,
provided that, any request by Spansion to change ten percent (10%) or more of the product mix by technology family as set in the accepted QBP will not be considered as reasonable and FML shall have the right to decline such request.

 6. FML and Spansion acknowledge and agree that the role of Spansion, Inc., Spansion Technology, Inc., and
Spansion LLC as guarantors of Spansion’s obligations hereunder shall apply only to Wafers delivered pursuant to valid Spansion purchase orders approved by one of the Guarantors. Furthermore, FML and Spansion acknowledge that any payment made by
such one of the Guarantors to FML on behalf of Spansion pursuant to the roles of Spansion, Inc., Spansion Technology, Inc., and Spansion LLC as guarantors of Spansion’s payment obligations hereunder shall relieve the Guarantors of (i) any
liability to Spansion to the extent of such payment, and (ii) any other payment obligation to FML pursuant to the role of the Guarantors as guarantors of Spansion’s obligations hereunder. 
 7. This Amendment shall become effective as of the Amendment Date, subject to (i) approval by the Boards of Directors or Trustee of the
respective Parties, (ii) approval by the Tokyo District Court in connection with the corporate reorganization proceeding of Spansion, if required, (iii) approval by the applicable Spansion, Inc.

  

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creditors in connection with the corporate reorganization proceeding of Spansion, Inc., if required, and (iv) the effective execution of an agreement between Spansion LLC and Spansion
concerning the foundry products to be purchased by Spansion from FML and sold in turn to Spansion LLC. 
 This Amendment shall be deemed a part
of and construed in accordance with the Agreement. This Amendment may be executed in counterparts. 
 IN WITNESS WHEREOF, the Parties hereto
have caused this Amendment to be duly signed and executed on the date and year first above written. 
  

			
	FUJITSU MICROELECTRONICS LIMITED
		
	By:	 	/s/  Makoto Goto

			
		
	Name:	 	Makoto Goto
		
	Title:	 	Corporate Vice President

  

			
	SPANSION, INC.
		
	By:	 	/s/  John Kispert

			
		
	Name:	 	John Kispert
		
	Title:	 	President and CEO

  

			
	SPANSION TECHNOLOGY, INC.
		
	By:	 	/s/  John Kispert

			
		
	Name:	 	John Kispert
		
	Title:	 	President and CEO

  

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	SPANSION LLC
		
	By:	 	/s/  John Kispert

			
		
	Name:	 	John Kispert
		
	Title:	 	President and CEO

  

			
	SPANSION JAPAN LIMITED
		
	By:	 	/s/  Masao Taguchi

			
		
	Name:	 	Masao Taguchi
		
	Title:	 	Trustee

  

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 EXHIBIT K 
 Subsequent Period Commitment for the second, third, and fourth Quarters of 2009, each of the Quarters of 2010, and the first and second Quarters of 2011 
  

																																	
	 2Q2009
  
	 	  	 	3Q2009	 	  	 	4Q2009	 	  	 	1Q2010	 	  	 	2Q2010	 	  	 	3Q2010	 	  	 	4Q2010	 	  	 	1Q2011	 	  	 	2Q2011
	 24,000
  
	 	 	 	 35,000
	 	 	 	 35,000
	 	 	 	 27,000
	 	 	 	 15,000
	 	 	 	 15,000
	 	 	 	 15,000
	 	 	 	 6,000
	 	 	 	6,000

 Subsequent Period Price 
 Wafer Price for the second, third, and fourth Quarters of 2009 shall be 45,000 Japanese Yen. Wafer Price for each Quarter of 2010 shall be 47,000 Japanese Yen. Wafer Price for the first and second
Quarters of 2011 shall be 57,000 Japanese Yen.

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