Document:

Purchase Agreement Dated March 31, 2004

 EXHIBIT 4.1 
  
 EXECUTION COPY 
  
 ON SEMICONDUCTOR CORPORATION 
  
 $260,000,000 
  
 Zero Coupon Convertible Senior Subordinated Notes due 2024 
  
 PURCHASE AGREEMENT 
  
 March 31, 2004 
  
 Morgan Stanley & Co. Incorporated 
 Credit Suisse First Boston LLC 
 J.P. Morgan Securities Inc. 
 Citigroup Global Markets Inc. 
 Lehman Brothers Inc. 
 c/o Morgan Stanley & Co. Incorporated 

1585 Broadway 
 New York, New York 10036, 
  
 Credit Suisse First Boston LLC 
 Eleven Madison Avenue 
 New York, NY 10010 3629, and 
  
 J.P. Morgan Securities Inc. 
 270 Park Avenue

 New York, NY 10017 
  
 Dear Sirs and Mesdames: 
  
 ON SEMICONDUCTOR CORPORATION, a Delaware corporation (the “Company”) proposes to issue and sell to the several purchasers named in
Schedule I hereto (the “Initial Purchasers”) $260,000,000 principal amount of the Zero Coupon Convertible Senior Subordinated Notes due 2024 (the “Firm Securities”) to be issued pursuant to the provisions of an
Indenture dated the Closing Date (as defined in Section 4) (the “Indenture”) among the Company, the subsidiaries of the Company listed on the signature pages hereof and Wells Fargo Bank of Minnesota, N. A., as Trustee (the
“Trustee”). The Company also proposes to issue and sell to the several Initial Purchasers not more than an additional $30,000,000 principal amount of the Zero Coupon Convertible Senior Subordinated Notes due 2024 (the
“Additional Securities”) if and to the extent that Morgan Stanley & Co. Incorporated (“Morgan Stanley”), Credit Suisse First Boston LLC and J.P. Morgan Securities Inc., as managers of the offering (the
“Managers”), shall have determined to exercise, on behalf of the Initial Purchasers, the right to purchase such Zero Coupon Convertible Senior Subordinated Notes due 2024 granted to the Initial Purchasers in Section 2 hereof. The
Firm Securities and the Additional Securities are hereinafter collectively referred to as the “Securities”. The Securities will be convertible into shares of common stock, $0.01 per share, of the Company (the “Underlying
Securities”). The shares 

  

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of common stock, par value $0.01 per share, of the Company are hereinafter referred to as the “Common Stock.” 
  
 The Company’s obligations under the Securities, including the due and
punctual payment of interest on the Securities, shall be unconditionally guaranteed (each, a “Guarantee” and collectively, the “Guarantees”) on a senior subordinated basis by each of the Company’s subsidiaries
listed in Schedule II hereto (the “Guarantors”). 
  
 The Securities will be offered without being registered under the Securities Act of 1933, as amended (the “Securities Act”), to qualified institutional buyers in compliance with the exemption from registration provided by
Rule 144A under the Securities Act. 
  
 The Initial Purchasers and
their direct and indirect transferees will be entitled to the benefits of a Registration Rights Agreement dated the Closing Date between the Company and the Initial Purchasers (the “Registration Rights Agreement”). 
  
 In connection with the sale of the Securities, the Issuer has prepared a
preliminary offering memorandum (the “Preliminary Memorandum”) and will prepare a final offering memorandum (the “Final Memorandum” and, with the Preliminary Memorandum, each a “Memorandum”)
including or incorporating by reference a description of the terms of the Securities and the Underlying Securities, the terms of the offering and a description of the Company. As used herein, the term “Memorandum” shall include in each
case the documents incorporated by reference therein. The terms “supplement”, “amendment” and “amend” as used herein with respect to a Memorandum shall include all documents deemed to be
incorporated by reference in the Preliminary Memorandum or Final Memorandum that are filed subsequent to the date of such Memorandum with the Securities and Exchange Commission (the “Commission”) pursuant to the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). 
  
 1. Representations and Warranties of the Company and the Guarantors. The Company and the Guarantors jointly and severally represent and warrant to, and agree with, the several Initial Purchasers that: 
  
 (a) (i) Each document, if any, filed or to be filed pursuant to the Exchange
Act, and incorporated by reference in either Memorandum, when filed with the Commission, did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein in order to make the
statements therein, in light of the circumstances under which they were made, not misleading and complied or will comply when so filed in all material respects with the Exchange Act and the applicable rules and regulations of the Commission
thereunder, and (ii) the Preliminary Memorandum as of its date did not contain, and the Final Memorandum, in the form used by the Initial Purchasers to confirm sales and on the Closing Date, will not contain, any untrue statement of a material fact
or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except that the representations and warranties set forth in this paragraph do not apply to
statements or omissions in either Memorandum based upon information relating to any Initial Purchaser 

  

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furnished to the Company in writing by such Initial Purchaser through you expressly for use therein. 
  
 (b) The Company has been duly incorporated, is validly existing as a
corporation in good standing under the laws of the State of Delaware, has the corporate power and authority to own its property and to conduct its business as described in the Final Memorandum and is duly qualified to transact business and is in
good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not, singly or in the
aggregate, have a material adverse effect on the Company and its subsidiaries, taken as a whole. 
  
 (c) Each subsidiary of the Company has been duly incorporated or otherwise organized, is validly existing as a corporation, limited liability company or
similar entity in good standing under the laws of the jurisdiction of its incorporation or formation, as the case may be, has all power and authority necessary to own its property and to conduct its business as described in the Final Memorandum and
is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or
be in good standing would not have a material adverse effect on the Company and its subsidiaries, taken as a whole; all of the issued and outstanding shares of capital stock, membership interests or other equity interests of each subsidiary of the
Company have been duly authorized and validly issued; are, in the case of capital stock or membership interests of subsidiaries organized under the United States, fully paid and nonassessable or, in the case of membership interests of any subsidiary
of the Company that is a Delaware limited liability company, are not subject to assessment by such subsidiary of the Company for additional capital contributions; and the shares of capital stock, membership interests or other equity interests of
each subsidiary owned by the Company, directly or through subsidiaries (other than (i) those shares of capital stock of Leshan-Phoenix Semiconductor Co., Ltd. that are owned by Leshan Radio Company Ltd. and Motorola (China) Investment Ltd., (ii)
shares of capital stock of ON Semiconductor Czech Republic, a.s. that are owned by minority shareholders, (iii) 60% of the shares of capital stock of Amicus Realty Corporation and (iv) in the case of foreign subsidiaries, directors’ qualifying
shares or shares required by applicable law to be held by a person other than Semiconductor Components Industries, LLC (“SCI LLC”), the Company or a subsidiary thereof), are owned free from any security interest, mortgage, pledge,
lien or encumbrance, or defect (collectively, “Liens”), except for (A) Liens described in the Final Memorandum, (B) Liens pursuant to or contemplated by the Amended and Restated Credit Agreement dated as of August 4, 1999, as
amended and restated through the Closing Date, (C) the Indenture and Liens contemplated by the indenture for the Senior Secured Notes due 2008 (the “2008 Notes Indenture”) dated as of May 6, 2002, among the Company, SCI LLC, the
guarantors defined therein and Wells Fargo Bank Minnesota, National Association, as trustee or (D) the Indenture and Liens contemplated by the indenture for the Senior Secured Notes due 2010 (the “2010 Notes Indenture”) dated as of
March 3, 2003, among the Company, SCI LLC, the guarantors defined therein and Wells Fargo Bank Minnesota, National Association, as trustee (collectively, the “Permitted Liens”). 
  

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 (d) No consent, approval, authorization, or order of, or filing with, any governmental agency or body or
any court is required for the consummation of the transactions contemplated by this Agreement, the Indenture, the Registration Rights Agreement or the Securities by the Company and the Guarantors, except (i) such as may be required by the securities
or Blue Sky laws of the various states in connection with the offer and sale of the Securities (ii) by Federal and state securities laws with respect to the Company’s obligations under the Registration Rights Agreement or (iii) where the
failure to obtain such consent, approval, authorization, order or filing would not, singly or in the aggregate, have a material adverse effect on the Company and its subsidiaries, taken as a whole. 
  
 (e) Except as disclosed in the Final Memorandum, the Company and its
subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all other properties and assets owned by them that is material to the business of the Company and its subsidiaries, in each case free
from Liens, except Permitted Liens, that would materially and adversely affect the value thereof or materially interfere with the use made or to be made thereof by them. 
  
 (f) The Company and its subsidiaries own, possess or can acquire on reasonable terms, the trademarks, trade names and other
rights to inventions, know-how, patents, copyrights, confidential information and other intellectual property (collectively, “intellectual property rights”) necessary to conduct the business now operated by them, and have not
received any notice of infringement of or conflict with asserted rights of others with respect to any intellectual property rights that, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a material
adverse effect on the Company and its subsidiaries, taken as a whole, except as described in the Final Memorandum. 
  
 (g) No labor dispute with the employees of the Company or any of its subsidiaries exists, or, to the knowledge of the Company, is imminent that would have
a material adverse effect on the Company and its subsidiaries, taken as a whole. 
  
 (h) The Company and its subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses,
and neither the Company nor any of its subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit that, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would have a material adverse effect on the Company and its subsidiaries, taken as a whole. 
  
 (i) The Company and each of its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance, in all material
respects, that (1) transactions are executed in accordance with management’s general or specific authorizations; (2) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability; and (3) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
  

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 (j) PricewaterhouseCoopers LLP are independent certified public accountants with respect to the Company
as required by the Securities Act and the rules and regulations of the Commission thereunder. 
  
 (k) This Agreement has been duly authorized, executed and delivered by the Company and each of the Guarantors. 
  
 (l) The authorized capital stock of the Company conforms to the description thereof contained in the Final Memorandum. 
  
 (m) The shares of Common Stock outstanding prior to the issuance of the
Securities have been duly authorized and are validly issued, fully paid and non-assessable. 
  
 (n) The Securities and the Guarantees have been duly authorized by the Company and the Guarantors, respectively, and, when executed and authenticated in accordance with the provisions of the Indenture and delivered to
and paid for by the Initial Purchasers in accordance with the terms of this Agreement, will be valid and binding obligations of the Company and each of the Guarantors, as the case may be, enforceable in accordance with their terms, subject to the
effects of applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and equitable principles of general applicability, and will be entitled to the benefits of the Indenture and the Registration Rights Agreement.

  
 (o) The Underlying Securities issuable upon conversion of the
Securities have been duly authorized and reserved and, when issued upon conversion of the Securities in accordance with the terms of the Securities, will be validly issued, fully paid and non-assessable, and the issuance of the Underlying Securities
will not be subject to any preemptive or similar rights. 
  
 (p)
Each of the Indenture, the Registration Rights Agreement and the Escrow Agreement has been duly authorized, and when executed and delivered by the Company and each of the Guarantors, will be a valid and binding agreement of the Company and each of
the Guarantors, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of equity and except as rights to indemnification and
contribution under the Registration Rights Agreement may be limited under applicable law. 
  
 (q) The execution and delivery by the Company and the Guarantors of, and the performance by the Company and the Guarantors of their obligations under, this Agreement, the Indenture, the Registration Rights Agreement
and the Securities, as applicable, (i) will not violate any provision of or the charter or by-laws or limited liability company agreement, as the case may be, of the Company or any Guarantor, (ii) will not result in a breach or violation of any of
the terms and provisions of, or constitute a default under, any statute, any rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company or any subsidiary of the Company or any
of their properties, or, to the extent not included in subclause (iii) of this paragraph, any agreement or instrument to which the Company or any other such subsidiary is a party or by which the Company or any other such subsidiary is bound or to
which any of the properties 

  

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of the Company or any subsidiary is subject except in each case set forth in this clause (ii) for such breaches, violations or defaults that would not
reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, and (iii) will not result in a breach or violation of any of the terms and provisions of, or constitute a default under any agreement or
instrument governing material indebtedness of the Company or subsidiary of the Company. 
  
 (r) No “nationally recognized statistical rating organization” as such term is defined for purposes of Rule 436(g)(2) under the Securities Act (i) has imposed (or has informed the Company that it is
considering imposing) any condition (financial or otherwise) on the Company’s, retaining any rating assigned to the Company, or any securities of the Company, or (ii) has given notice to the Company that it is considering (A) the downgrading,
suspension, or withdrawal of, or any review for a possible change that does not indicate the direction of the possible change in, any rating so assigned or (B) any change in the outlook for any rating of Company or any securities of the Company.

  
 (s) The financial statements included in the Final Memorandum
present fairly the financial position of the Company and its consolidated subsidiaries as of the dates shown and their results of operations and cash flows for the periods shown and, except as disclosed in the Final Memorandum, such financial
statements have been prepared in conformity with the generally accepted accounting principles in the United States applied on a consistent basis. 
  
 (t) Except as disclosed in the Final Memorandum, since the date of the latest audited financial statements included in the Final Memorandum, there has
been no material adverse change, or any development involving a prospective material adverse change, in the condition (financial or otherwise) or in the earnings, business or operations of the Company and its subsidiaries taken as a whole, and,
except as disclosed in or contemplated by the Final Memorandum, there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its capital stock. 
  
 (u) Except as disclosed in the Final Memorandum, there is no pending action,
suit or proceeding against or affecting the Company, any of its subsidiaries or any of their respective properties that, individually or in the aggregate, is reasonably likely to result in a material adverse effect on the Company and its
subsidiaries, taken as a whole, or would materially and adversely affect the ability of the Company and the Guarantors to perform their obligations under this Agreement, the Indenture, the Registration Rights Agreement or the Securities, as
applicable, or to consummate the transactions contemplated by the Final Memorandum; and, to the Company’s knowledge, there is no such action, suit or proceeding threatened. 
  
 (v) Neither the Company nor any of its subsidiaries is an open-end investment company, unit investment trust or face-amount
certificate company that is or is required to be registered under Section 8 of the United States Investment Company Act of 1940 (the “Investment Company Act”); and neither the Company nor any of its subsidiaries is and, after giving
effect to the offering and sale of the Securities and the application of the proceeds thereof as described in the Final Memorandum, will be an “investment company” as defined in the Investment Company Act. 
  

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 (w) Except as disclosed in the Final Memorandum or except as would, singly and in the aggregate, not have
a material adverse effect on the Company and its subsidiaries, taken as a whole, the Company and its subsidiaries (1) are in compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of
human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (2) have received all permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses and (3) are in compliance with all terms and conditions of any such permit, license or approval. 
  
 (x) Except as disclosed in the Final Memorandum, there are no costs or liabilities associated with Environmental Laws (including, without limitation, any
capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or any permit, license or approval, any related constraints on operating activities and any potential liabilities to third parties)
that would, singly or in the aggregate, have a material adverse effect on the Company and its subsidiaries, taken as a whole. 
  
 (y) Neither the Company nor any of its subsidiaries is in violation of its respective charter or by-laws or in default in the performance of any
obligation, agreement, covenant or condition contained in any indenture, loan agreement, mortgage, lease or other agreement or instrument, except for such defaults that, singularly or in the aggregate, would not reasonably be expected to have a
material adverse effect on the Company and its subsidiaries, taken as a whole, to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries or their respective property is bound. 
  
 (z) None of the Company or any affiliates (as defined in Rule 501(b) of
Regulation D under the Securities Act, an “Affiliate”) of the Company has directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the
Securities Act) which is or will be integrated with the sale of the Securities in a manner that would require the registration under the Securities Act of the Securities or (ii) offered, solicited offers to buy or sold the Securities by any form of
general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act. 
  
 (aa) Assuming the Securities are issued, sold and delivered under the
circumstances contemplated by the Final Memorandum and the accuracy of, and Initial Purchasers’ compliance with, the representations, warranties and agreements of the Initial Purchasers set forth in Section 7 of this Agreement, it is not
necessary in connection with the offer, sale and delivery of the Securities to the Initial Purchasers in the manner contemplated by this Agreement to register the Securities under the Securities Act or to qualify the Indenture under the Trust
Indenture Act of 1939, as amended. 
  
 (bb) The Securities satisfy
the requirements set forth in Rule 144A(d)(3) under the Securities Act. 
  

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 2. Agreements to Sell and Purchase. The Company agrees to sell to the several Initial Purchasers,
and each Initial Purchaser, upon the basis of the representations and warranties herein contained, but subject to the conditions hereinafter stated, agrees, severally and not jointly, to purchase from the Company the respective amount of Firm
Securities set forth in Schedule I hereto opposite its name at a purchase price of 97% of the principal amount thereof (the “Purchase Price”). 
  

On the basis of the representations and warranties contained in this Agreement, and subject to its terms and conditions, the Company agrees to sell to
the Initial Purchasers the Additional Securities, and the Initial Purchasers shall have the right to purchase, severally and not jointly, up to $30,000,000 principal amount of Additional Securities at the Purchase Price. You may exercise this right
on behalf of the Initial Purchasers in whole or from time to time in part by giving written notice of each election to exercise this option not later than 30 days after the date of this Agreement. Any exercise notice shall specify the principal
amount of Additional Securities to be purchased by the Initial Purchasers and the date on which such Additional Securities are to be purchased. Each purchase date must be at least one business day after the written notice is given and may not be
earlier than the Closing Date for the Firm Securities nor later than ten business days after the date of such notice. Should such date be subsequent to the Closing Date, Morgan Stanley shall provide such notice no later than three days prior to such
date. If any Additional Securities are to be purchased, each Initial Purchaser agrees, severally and not jointly, to purchase the principal amount of Additional Securities (subject to such adjustments to eliminate fractional Securities as you may
determine) that bears the same proportion to the total principal amount of Additional Securities to be purchased as the principal amount of Firm Securities set forth in Schedule I hereto opposite the name of such Initial Purchaser bears to the total
principal amount of Firm Securities. 
  
 The Company hereby agrees
that, without the prior written consent of the Managers on behalf of the Initial Purchasers, it will not, during the period ending 60 days after the date of the Final Memorandum, (i) offer, pledge, sell, contract to sell, sell any option or contract
to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or
exchangeable for Common Stock or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause (i) or
(ii) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The foregoing sentence shall not apply to (A) the sale and issuance of the Securities under this Agreement, (B) the issuance of Underlying
Securities upon conversion of the Securities in accordance with their terms, (C) the issuance by the Company of any shares of Common Stock upon the exercise of an option or warrant or the conversion of a security outstanding on the date hereof, or
in the case of an option granted after the date hereof, pursuant to existing employee benefit plans of the Company or any of its subsidiaries, of which the Initial Purchasers have been advised in writing, (D) the granting by the Company of any
options to purchase shares of Common Stock or any restricted stock units or the sale by the Company of any shares of Common Stock, in each case pursuant to any existing employee benefit plan or direct stock plan of the 

  

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Company or any of its subsidiaries, (E) the issuance by the Company of any shares of Common Stock in connection with the acquisition of or merger with or
into any other company or the acquisition of any assets, (F) the sale of Common Stock on or after May 4, 2004 by directors or executive officers under existing plans or agreements meeting the requirements of Rule 10b5-1 under the Exchange Act for
the pre-arranged sale of shares of Common Stock or (G) the sale of Common Stock by TPG Semiconductor Holdings LLC (“TPG Holdings”) or TPG ON Holdings LLC, provided that this exception shall not affect the applicability of any
sales restrictions pursuant to (i) the Underwriting Agreement dated February 3, 2004 among the Company, TPG Holdings and the Underwriters as defined therein (the “February Underwriting Agreement”) or (ii) any lock-up agreement
executed pursuant to the February Underwriting Agreement; provided that in the case of any issuance, transfer or disposition pursuant to clause (E), (i) each recipient of such shares shall agree in writing, for the benefit of the Managers on
behalf of the Initial Purchasers, that such shares shall remain subject to restrictions identical to those contained in the first sentence of this paragraph for the remainder of the period for which the Company is bound thereunder, and each such
recipient shall execute and deliver to the Managers a duplicate of such writing, and (ii) if a filing by any party to such issuance, transfer or disposition (issuer, transferor, disposer, recipient or transferee) under Section 16(a) of the Exchange
Act shall be required in connection with such issuance, transfer or disposition (other than a filing on a Form 5 made after the expiration of the 60-day period referred to above), such party shall provide the Managers no less than seven days prior
written notice of such filing (it being understood that no such filing shall be made by any such party if not required to be made under the Exchange Act). 
  
 3. Terms of Offering. You have advised the Company that the Initial Purchasers will make an offering of the Securities purchased by the Initial
Purchasers hereunder on the terms to be set forth in the Final Memorandum, as soon as practicable after this Agreement is entered into as in your judgment is advisable. 
  
 4. Payment and Delivery. Payment for the Firm Securities shall be made to the Company in Federal or other funds
immediately available at the offices of Cleary, Gottlieb, Steen & Hamilton in New York City against delivery of such Firm Securities for the respective accounts of the several Initial Purchasers at 10:00 a.m., New York City time, on April 6,
2004, or at such other time on the same or such other date, not later than April 13, 2004, as shall be designated in writing by you. The time and date of such payment are hereinafter referred to as the “Closing Date”. 
  
 Payment for any Additional Securities shall be made to the Company in Federal
or other funds immediately available in New York City against delivery of such Additional Securities for the respective accounts of the several Initial Purchasers at 10:00 a.m., New York City time, on the date specified in the corresponding notice
described in Section 2 or at such other time on the same or on such other date, in any event not later than 30 days after the Closing Date, as shall be designated in writing by you. The time and date of such payment are hereinafter referred to as
the “Option Closing Date”. 
  
 The Securities
shall be in definitive form or global form, as specified by you, and registered in such names and in such denominations as you shall request in writing not 

  

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later than one full business day prior to the Closing Date or the Option Closing Date, as the case may be. The Securities shall be delivered to you on the
Closing Date or the Option Closing Date, as the case may be, for the respective accounts of the several Initial Purchasers, with any transfer taxes payable in connection with the transfer of the Securities to the Initial Purchasers duly paid,
against payment of the Purchase Price therefor. 
  
 5.
Conditions to the Initial Purchasers’ Obligations. The several obligations of the Initial Purchasers to purchase and pay for the Firm Securities on the Closing Date are subject to the following conditions: 
  
 (a) Subsequent to the execution and delivery of this Agreement and prior to
the Closing Date: 
  
 (i) there shall not have occurred any
downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded any of the Company’s
securities by any “nationally recognized statistical rating organization,” as such term is defined for purposes of Rule 436(g)(2) under the Securities Act; and 
  
 (ii) there shall not have occurred any change, or any development involving a prospective change, in the condition,
financial or otherwise, or in the earnings, business operations of the Company and its subsidiaries, taken as a whole, from that set forth in the Final Memorandum that, in your judgment, is material and adverse and that makes it, in your judgment,
impracticable to market the Securities on the terms and in the manner contemplated in the Final Memorandum. 
  
 (b) The Initial Purchasers shall have received on the Closing Date a certificate, dated the Closing Date and signed by Keith D. Jackson, as chief
executive officer, and Donald Colvin, as chief financial officer, to the effect set forth in Section 5(a)(i) above and to the effect that the representations and warranties of the Company and each of the Guarantors contained in this Agreement are
true and correct as of the Closing Date and that the Company and each of the Guarantors has complied with all of the agreements and satisfied all conditions on its part to be performed or satisfied hereunder on or before the Closing Date.

  
 The officers signing and delivering such certificate may rely
upon the best of his or her knowledge as to proceedings threatened. 
  
 (c) The Initial Purchasers shall have received on the Closing Date from George H. Cave, General Counsel of the Company, dated the Closing Date, an opinion in form and substance reasonably satisfactory to the Underwriters. 
  
 (d) The Initial Purchasers shall have received on the Closing Date from
Cleary, Gottlieb, Steen & Hamilton, special counsel to the Company and the Guarantors, dated the Closing Date, an opinion in form and substance reasonably satisfactory to the Initial Purchasers. 
  

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 (e) The Initial Purchasers shall have received on the Closing Date an opinion of Cravath, Swaine &
Moore LLP, counsel for the Initial Purchasers, dated the Closing Date, in form and substance reasonably satisfactory to the Initial Purchasers. 
  
 (f) The Initial Purchasers shall have received, on each of the date hereof and the Closing Date, a letter dated the date hereof or the Closing Date, as
the case may be, in form and substance satisfactory to the Initial Purchasers, from PricewaterhouseCoopers LLP, independent certified public accountants, containing statements and information of the type ordinarily included in accountants’
“comfort letters” to underwriters with respect to the financial statements and certain financial information contained in or incorporated by reference into each Memorandum, and only if permitted, by Statement of Auditing Standard No. 72;
provided that the letter delivered on the Closing Date shall use a “cut-off date” not earlier than the date hereof. 
  
 (g) The “lock up” agreements, each substantially in the form of Exhibit A hereto, between you and the directors and executive officers of the
Company, relating to sales and certain other dispositions of shares of Common Stock or certain other securities, delivered to you on or before the date hereof, shall be in full force and effect on the Closing Date. 
  
 (h) The Company shall have filed a “Notification Form: Listing of
Additional Shares” and any required supporting documentation relating to the Underlying Securities with the NASDAQ Stock Market. 
  
 The several obligations of the Initial Purchasers to purchase Additional Securities hereunder are subject to the delivery to you on the Option Closing
Date of such documents as you may reasonably request with respect to the good standing of the Company, the due authorization, execution and authentication of the Additional Securities to be sold on the Option Closing Date and other matters related
to the execution and authentication of such Additional Securities. 
  
 6. Covenants of the Company and Guarantors. In further consideration of the agreements of the Initial Purchasers herein contained, the Company and Guarantors jointly and severally covenant with each Initial Purchaser as follows:

  
 (a) To furnish to you in New York City, without charge, prior
to 10:00 a.m. New York City time on the business day next succeeding the date of this Agreement and during the period mentioned in Section 6(c), as many copies of the Final Memorandum, any documents incorporated by reference therein and any
supplements and amendments thereto as you may reasonably request. 
  
 (b) Before amending or supplementing either Memorandum, to furnish to you a copy of each such proposed amendment or supplement and not to use any such proposed amendment or supplement to which you reasonably object. 
  
 (c) If, during such period after the date hereof and prior to the date on
which all of the Securities shall have been sold by the Initial Purchasers, any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Final 

  

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Memorandum in order to make the statements therein, in the light of the circumstances when the Final Memorandum is delivered to a purchaser, not misleading,
or if, in the opinion of counsel for the Initial Purchasers, it is necessary to amend or supplement the Final Memorandum to comply with applicable law, forthwith to prepare and furnish, at its own expense, to the Initial Purchasers, either
amendments or supplements to the Final Memorandum so that the statements in the Final Memorandum as so amended or supplemented will not, in the light of the circumstances when the Final Memorandum is delivered to a purchaser, be misleading or so
that the Final Memorandum, as amended or supplemented, will comply with applicable law; provided, that in the event the Company is required to amend or supplement the Final Memorandum pursuant to this Section 6(c) after nine months from the
date hereof, any costs incurred by the Company relating to such supplement or amendment shall be borne by the Initial Purchasers. 
  
 (d) To endeavor to qualify the Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions as you shall reasonably request;
provided that neither the Company nor any of its subsidiaries shall be obligated to qualify as foreign corporations in any jurisdiction in which it is not so qualified or to file a general consent to service of process in any jurisdiction.

  
 (e) Whether or not the transactions contemplated in this
Agreement are consummated or this Agreement is terminated, to pay or cause to be paid all expenses incident to the performance of the Company’s obligations under this Agreement, including: (i) the fees, disbursements and expenses of the
Company’s counsel and the Company’s accountants in connection with the issuance and sale of the Securities and all other fees or expenses in connection with the preparation of each Memorandum and all amendments and supplements thereto,
including all printing costs associated therewith, and the delivering of copies thereof to the Initial Purchasers, in the quantities herein above specified, (ii) all costs and expenses related to the transfer and delivery of the Securities to the
Initial Purchasers, including any transfer or other taxes payable thereon, (iii) the cost of printing or producing any Blue Sky or legal investment memorandum in connection with the offer and sale of the Securities under state securities laws and
all expenses in connection with the qualification of the Securities for offer and sale under state securities laws as provided in Section 6(d) hereof, including filing fees and the reasonable fees and disbursements of counsel for the Initial
Purchasers in connection with such qualification and in connection with the Blue Sky or legal investment memorandum, (iv) any fees charged by rating agencies for the rating of the Securities, (v) the fees and expenses, if any, incurred in connection
with the admission of the Securities for trading in PORTAL or any appropriate market system, (vi) the costs and charges of the Trustee and any transfer agent, registrar or depositary, (vii) the cost of the preparation, issuance and delivery of the
Securities, (viii) the costs and expenses of the Company relating to investor presentations on any “road show” undertaken in connection with the marketing of the offering of the Securities, including, without limitation, expenses
associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company, costs and expenses associated with any conference
rooms or presentation facilities used in connection with the road show presentations and travel and lodging expenses of the representatives and officers of the Company and any such consultants, and 

  

 - 12 - 

 
(ix) all other costs and expenses incident to the performance of the obligations of the Company hereunder for which provision is not otherwise made in this
Section; provided, however, that the Initial Purchasers shall pay their own costs and expenses associated with lodging and provided, further, that the Initial Purchasers and the Company shall each pay 50% of the costs of
any limousine used or any aircraft chartered in connection with the “road show”. It is understood, however, that except as provided in this Section, Section 8 entitled “Indemnity and Contribution” and the last paragraph of
Section 10, the Initial Purchasers will pay all of their costs and expenses, including fees and disbursements of their counsel, transfer taxes payable on resale of any of the Securities by them and any advertising expenses connected with any offers
they may make. 
  
 The provisions of this Section shall not
supersede or otherwise affect any agreement that the Initial Purchasers may otherwise have for the allocation of such expenses among themselves. 
  
 (f) To not offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in the Securities Act) which could be
integrated with the sale of the Securities in a manner which would require the registration under the Securities Act of the Securities. 
  
 (g) To not solicit any offer to buy or offer or sell the Securities or the Underlying Securities by means of any form of general solicitation or general
advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act. 
  
 (h) While any of the Securities or the Underlying Securities remain “restricted securities” within the meaning of
the Securities Act, to make available, upon request, to any seller of such Securities the information specified in Rule 144A(d)(4) under the Securities Act, unless the Company is then subject to Section 13 or 15(d) of the Exchange Act. 

 
 (i) To use its reasonable best efforts to permit the Securities to be
designated PORTAL securities in accordance with the rules and regulations adopted by the National Association of Securities Dealers, Inc. relating to trading in the PORTAL Market. 
  
 (j) During the period of two years after the Closing Date or any Option Closing Date, if later, to not resell or permit any
of its affiliates (as defined in Rule 144 under the Securities Act) to resell any of the Securities or the Underlying Securities which constitute “restricted securities” under Rule 144 that have been reacquired by any of them. 

 
 (k) To reserve and keep available at all times, free of preemptive rights,
shares of common stock for the purpose of enabling the Company to satisfy any obligations to issue shares of common stock upon conversion of the Securities. 
  
 7. Offering of Securities; Restrictions on Transfer. Each Initial Purchaser, severally and not jointly, represents and warrants that such Initial
Purchaser is a qualified institutional buyer as defined in Rule 144A under the Securities Act (a “QIB”). Each Initial Purchaser, severally and not jointly, agrees with the Company that (i) it will not solicit offers 

  

 - 13 - 

 
for, or offer or sell, such Securities by any form of general solicitation or general advertising (as those terms are used in Regulation D under the
Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act and (ii) it will solicit offers for such Securities only from, and will offer such Securities only to, persons that it reasonably
believes to be QIBs that in purchasing such Securities are deemed to have represented and agreed as provided in the Final Memorandum under the caption “Transfer Restrictions”, and it has taken or will take reasonable steps to ensure that
the purchaser of such Securities are aware that such sale is being made in reliance on Rule 144A. 
  
 8. Indemnity and Contribution. (a) Each of the Company and the Guarantors jointly and severally agree to indemnify and hold harmless each Initial
Purchaser, each person, if any, who controls any Initial Purchaser within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and each affiliate of any Initial Purchaser within the meaning of Rule 405 under the
Securities Act from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) caused by any
untrue statement or alleged untrue statement of a material fact contained in either Memorandum (as amended or supplemented, if the Company shall have furnished any amendments or supplements thereto), or caused by any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements therein in the light of the circumstances under which they were made not misleading, except insofar as such losses, claims, damages or liabilities are
caused by any such untrue statement or omission or alleged untrue statement or omission based upon information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through you expressly for use therein;
provided, however, that the foregoing indemnity agreement with respect to any Preliminary Memorandum shall not inure to the benefit of any Initial Purchaser or any person who controls any Initial Purchaser within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act from whom the person asserting any such losses, claims, damages or liabilities purchased Securities, if a copy of the Final Memorandum was furnished by the Company to such Initial Purchaser but
was not sent or given by or on behalf of such Initial Purchaser to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of such Securities to such person, and if the Final Memorandum would
have cured the defect giving rise to such loss, claim, damage or liability, unless such failure is the result of noncompliance by the Company with Section 6(a) hereof. 
  
 (b) Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless the Company, the Guarantors,
the directors and officers of the Company, the directors and officers of the Guarantors and each person, if any, who controls the Company or the Guarantors within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange
Act to the same extent as the foregoing indemnity from the Company or the Guarantors, as the case may be, to such Initial Purchaser, but only with reference to information relating to such Initial Purchaser furnished to the Company in writing by
such Initial Purchaser through you expressly for use in either Memorandum or any amendments or supplements thereto. 
  

 - 14 - 

 (c) In case any proceeding (including any governmental investigation) shall be instituted involving any
person in respect of which indemnity may be sought pursuant to Section 8(a) or 8(b), such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be sought (the “indemnifying
party”) in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others the indemnifying party may
designate in such proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded
parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the indemnifying
party shall not, in respect of the legal expenses of any indemnified party in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any
local counsel) for all indemnified parties and that all such fees and expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by Morgan Stanley, in the case of parties indemnified pursuant to Section 8(a), and by
the Company, in the case of parties indemnified pursuant to Section 8(b). The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final
judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any
settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed
the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in
respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on
claims that are the subject matter of such proceeding. 
  
 (d) To
the extent the indemnification provided for in Section 8(a) or 8(b) is unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each indemnifying party under such Section
in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the
relative benefits received by the indemnifying party or parties on the one hand and the indemnified party or parties on the other hand from the offering of the Securities or (ii) if the allocation provided by clause 

  

 - 15 - 

 
8(d)(i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause
8(d)(i) above but also the relative fault of the indemnifying party or parties on the one hand and of the indemnified party or parties on the other hand in connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative fault of the Company and Guarantors on the one hand and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and Guarantors or by the Initial Purchasers and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. The Initial Purchasers’ respective obligations to contribute pursuant to this Section 8 are several in proportion to the respective principal
amount of Securities they have purchased hereunder, and not joint. 
  
 (e) The Company and Guarantors and the Initial Purchasers agree that it would not be just or equitable if contribution pursuant to this Section 8 were determined by pro rata allocation (even if the Initial Purchasers were
treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in Section 8(d). The amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this Section 8, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities resold by
it in the initial placement of such Securities were offered to investors exceeds the amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The remedies provided
for in this Section 8 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. 
  
 (f) The indemnity and contribution provisions contained in this Section 8 and the representations, warranties and other
statements of the Company and the Guarantors contained in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Initial Purchaser,
any person controlling any Initial Purchaser or any affiliate of any Initial Purchaser, by or on behalf of the Company, its officers or directors or any person controlling the Company or by and on behalf of the Guarantors, their officers or
directors or any person controlling the Guarantors and (iii) acceptance of and payment for any of the Securities. 
  
 9. Termination. The Initial Purchasers may terminate this Agreement by notice given by you to the Company, if, after the execution and delivery of
this Agreement and prior to the Closing Date, (i) trading generally shall have been suspended or materially limited on, or by, as the case may be, any of the New York Stock Exchange, the American Stock 

  

 - 16 - 

 
Exchange, the Nasdaq National Market, the Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the Chicago Board of Trade, (ii) trading of
any securities of the Company shall have been suspended on any exchange or in any over-the-counter market, (iii) a material disruption in securities settlement, payment or clearance services in the United States shall have occurred, (iv) any
moratorium on commercial banking activities shall have been declared by Federal or New York State authorities or (v) there shall have occurred any outbreak or escalation of hostilities, or any change in financial markets or any calamity or crisis
that, in your judgment, is material and adverse and that, singly or together with any other event specified in this clause (v), makes it, in your judgment, impracticable to proceed with the offer, sale or delivery of the Securities on the terms and
in the manner contemplated in the Final Memorandum. 
  
 10.
Effectiveness; Defaulting Initial Purchasers. This Agreement shall become effective upon the execution and delivery hereof by the parties hereto. 
  
 If, on the Closing Date, or the Option Closing Date, as the case may be, any one or more of the Initial Purchasers shall fail or refuse to purchase
Securities that it or they have agreed to purchase hereunder on such date, and the aggregate principal amount of Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase is not more than
one-tenth of the aggregate principal amount of Securities to be purchased on such date, the other Initial Purchasers shall be obligated severally in the proportions that the principal amount of Firm Securities set forth opposite their respective
names in Schedule I bears to the aggregate principal amount of Firm Securities set forth opposite the names of all such non-defaulting Initial Purchasers, or in such other proportions as you may specify, to purchase the Securities which such
defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase on such date; provided that in no event shall the principal amount of Securities that any Initial Purchaser has agreed to purchase pursuant to this
Agreement be increased pursuant to this Section 10 by an amount in excess of one-ninth of such principal amount of Securities without the written consent of such Initial Purchaser. If, on the Closing Date any Initial Purchaser or Initial Purchasers
shall fail or refuse to purchase Firm Securities which it or they have agreed to purchase hereunder on such date and the aggregate principal amount of Securities with respect to which such default occurs is more than one-tenth of the aggregate
principal amount of Firm Securities to be purchased on such date, and arrangements satisfactory to you, the Company for the purchase of such Firm Securities are not made within 36 hours after such default, this Agreement shall terminate without
liability on the part of any non-defaulting Initial Purchaser, the Company. In any such case either you or the Company shall have the right to postpone the Closing Date, but in no event for longer than seven days, in order that the required changes,
if any, in the Final Memorandum or in any other documents or arrangements may be effected. If, on the Option Closing Date, any Initial Purchaser or Initial Purchasers shall fail or refuse to purchase Additional Securities and the aggregate principal
amount of Additional Securities with respect to which such default occurs is more than one-tenth of the aggregate principal amount of Additional Securities to be purchased on the Option Closing Date, the non-defaulting Initial Purchasers shall have
the option to (a) terminate their obligation hereunder to purchase the Additional Securities to be sold on the Option Closing Date or (b) purchase not less than the principal amount of Additional 

  

 - 17 - 

 
Securities that such non-defaulting Initial Purchasers would have been obligated to purchase in the absence of such default. Any action taken under this
paragraph shall not relieve any defaulting Initial Purchaser from liability in respect of any default of such Initial Purchaser under this Agreement. 
  
 If this Agreement shall be terminated by the Initial Purchasers, or any of them, because of any failure or refusal on the part of the Company or any
Guarantor to comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason the Company or any Guarantor shall be unable to perform its obligations under this Agreement, the Company will reimburse the Initial
Purchasers or such Initial Purchasers as have so terminated this Agreement with respect to themselves, severally, for all documented out-of-pocket expenses (including the fees and disbursements of their counsel) reasonably incurred by such Initial
Purchasers in connection with this Agreement or the offering contemplated hereunder. 
  
 11. Counterparts. This Agreement may be signed in two or more counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 12. Applicable Law. This Agreement shall be governed by and construed in accordance with the internal laws of the
State of New York. 
  

 - 18 - 

 13. Headings. The headings of the sections of this Agreement have been inserted for convenience of
reference only and shall not be deemed a part of this Agreement. 
  

			
	 Very truly yours,

	
	 ON SEMICONDUCTOR CORPORATION

		
	By	 	/s/    KEITH JACKSON        
	 	 	

	 Name:
	 	Keith Jackson
	 Title:
	 	President & CEO

  

			
	 SEMICONDUCTOR COMPONENTS
 INDUSTRIES, LLC

		
	By	 	/s/    KEITH JACKSON        
	 	 	

	 Name:
	 	Keith Jackson
	 Title:
	 	President & CEO

  

			
	 SCG (MALAYSIA SMP) HOLDING
 CORPORATION

		
	By	 	/s/    DONALD COLVIN        
	 	 	

	 Name:
	 	Donald Colvin
	 Title:
	 	Sr. Vice President, CFO & Treasurer

  

			
	 SCG (CZECH) HOLDING CORPORATION

		
	By	 	/s/    DONALD COLVIN        
	 	 	

	 Name:
	 	Donald Colvin
	 Title:
	 	Sr. Vice President, CFO & Treasurer

  

 - 19 - 

			
	 SCG (CHINA) HOLDING CORPORATION

		
	By	 	/s/    DONALD COLVIN        
	 	 	

	 Name:
	 	Donald Colvin
	 Title:
	 	Sr. Vice President, CFO & Treasurer

  

			
	 SEMICONDUCTOR COMPONENTS
 INDUSTRIES PUERTO RICO, INC.

		
	By	 	/s/    DONALD COLVIN        
	 	 	

	 Name:
	 	Donald Colvin
	 Title:
	 	Sr. Vice President, CFO & Treasurer

  

			
	 SEMICONDUCTOR COMPONENTS
 INDUSTRIES OF RHODE ISLAND, INC.

		
	By	 	/s/    DONALD COLVIN        
	 	 	

	 Name:
	 	Donald Colvin
	 Title:
	 	Sr. Vice President, CFO & Treasurer

  

			
	 SCG INTERNATIONAL DEVELOPMENT LLC

		
	By	 	/s/    DONALD COLVIN        
	 	 	

	 Name:
	 	Donald Colvin
	 Title:
	 	Sr. Vice President, CFO & Treasurer

  

			
	 SEMICONDUCTOR COMPONENTS
 INDUSTRIES INTERNATIONAL OF RHODE
 ISLAND, INC.

		
	By	 	/s/    DONALD COLVIN        
	 	 	

	 Name:
	 	Donald Colvin
	 Title:
	 	Sr. Vice President, CFO & Treasurer

  

 - 20 - 

			
	 Accepted as of the date hereof

	
	MORGAN STANLEY & CO. INCORPORATED Acting severally on behalf of itself and the several Initial Purchasers named in Schedule I hereto,
		
	By	 	/s/    NATHAN MCMURTRAY        
	 	 	

	 Name:
	 	Nathan McMurtray
	 Title:
	 	Vice President

  

			
	 Accepted as of the date hereof

	
	 CREDIT SUISSE FIRST BOSTON LLC
 Acting
severally on behalf of itself and the several
 Initial Purchasers named in Schedule I hereto,

		
	By	 	/s/    JOHN HODGE        
	 	 	

	 Name:
	 	John Hodge
	 Title:
	 	Managing Director

  

			
	 Accepted as of the date hereof

	
	 J. P. MORGAN SECURITIES INC.
 Acting
severally on behalf of itself and the several
 Initial Purchasers named in Schedule I hereto,

		
	By	 	/s/    KEVIN KULAK        
	 	 	

	 Name:
	 	Kevin Kulak
	 Title:
	 	Vice President

  

 - 21 - 

 Schedule I 
  

				
	 Initial Purchaser

	  	Principal Amount of Firm
Securities to be Purchased

	 Morgan Stanley & Co. Incorporated
	  	$	69,334,000
	 Credit Suisse First Boston LLC
	  	$	69,333,000
	 J.P. Morgan Securities Inc.
	  	$	69,333,000
	 Citigroup Global Markets Inc.
	  	$	26,000,000
	 Lehman Brothers Inc.
	  	$	26,000,000
	 Total
	  	$	260,000,000
	 	  	
	

  

 - 22 - 

 Schedule II 
  
 Guarantors 
  
 Semiconductor Components Industries, LLC 
 SCG (Malaysia SMP) Holding Corporation 
 SCG (Czech) Holding Corporation 
 SCG (China) Holding Corporation 

Semiconductor Components Industries Puerto Rico, Inc. 
 Semiconductor
Components Industries of Rhode Island, Inc. 
 SCG International Development LLC 
 Semiconductor Components Industries International of Rhode Island, Inc. 
  

 - 23 - 

 EXHIBIT A 
  

[Form of Lock-up Agreement] 
  
                     , 2004 
  
 Morgan Stanley & Co. Incorporated 
 1585 Broadway 
 New York, NY 10036, 
 Credit Suisse First Boston LLC 
 Eleven Madison Avenue 
 New York, NY 10010 3629, and 
 J.P. Morgan Securities Inc. 
 270 Park Avenue 
 New York, NY 10017 
  
 Dear Sirs and Mesdames: 
  
 The undersigned understands that Morgan Stanley & Co. Incorporated (“Morgan Stanley”), Credit Suisse
First Boston LLC (“CFSB”) and J.P. Morgan Securities Inc. (“JPM”, and together with Morgan Stanley and CSFB, the “Managers”) proposes to enter into a Purchase Agreement (the “Purchase
Agreement”) with ON Semiconductor Corporation, a Delaware corporation (the “Company”) and the guarantors listed on Schedule II thereto (the “Guarantors”), providing for the offering (the
“Offering”) by the several Initial Purchasers, including the Managers (the “Initial Purchasers”), of Zero Coupon Convertible Senior Subordinated Notes due 2024 of the Company (the “Securities”). The
Securities will be convertible into shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”). 
  
 To induce the Initial Purchasers that may participate in the Offering to continue their efforts in connection with the Offering, the undersigned hereby
agrees that, without the prior written consent of the Managers on behalf of the Initial Purchasers, it will not, during the period commencing on the date hereof and ending 60 days after the date of the final offering memorandum relating to the
Offering (the “Final Memorandum”), (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise
transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock or (2) enter into any swap or other arrangement that transfers to another, in whole or in
part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The foregoing
sentence shall not apply to (a) transactions relating to shares of Common Stock or other securities acquired in open market transactions after the completion of the Offering, (b) transfers of shares of Common Stock or any security convertible into
Common Stock as a bona fide gift or gifts, (c) transfers and dispositions between or among the undersigned, any of its affiliates and any partners, shareholders or members of any of the foregoing (d) the sale of shares of Common Stock on or after
May 4, 2004 by directors or 

  

 - 1 - 

 
executive officers under existing plans or agreements entered into that establish plans meeting the requirements of Rule 10b5-1 under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), for the pre-arranged sale of shares of Common Stock or (e) the sale of shares of Common Stock by TPG Semiconductor Holdings LLC (“TPG Holdings”) or TPG ON Holdings LLC,
provided that this exception shall not affect the applicability of any sales restrictions pursuant to (i) the Underwriting Agreement dated February 3, 2004 among the Company, TPG Holdings and the Underwriters as defined therein (the
“February Underwriting Agreement”) or (ii) any lock-up agreement executed pursuant to the February Underwriting Agreement; provided, that in the case of any transfer, distribution or disposition pursuant to clause (b) or (c),
(i) each donee, distributee or disposition recipient shall execute and deliver to the Managers a duplicate form of this Lock-up Letter and (ii) if a filing by any party (donor, donee, transferor, transferee, disposer or disposition recipient) under
Section 16(a) of the Exchange Act, shall be required in connection with such transfer, distribution or disposition (other than a filing on a Form 5 made after the expiration of the 60-day period referred to above), such party shall provide the
Managers no less than one day prior notice of such filing (it being understood that no such filing shall be made by any such party if not required to be made under the Exchange Act). In addition, the undersigned agrees that, without the prior
written consent of the Managers on behalf of the Initial Purchasers, it will not, during the period commencing on the date hereof and ending 60 days after the date of the Final Memorandum, make any demand for or exercise any right with respect to,
the registration of any shares of Common Stock or any security convertible into or exercisable or exchangeable for Common Stock. 
  
 Whether or not the Offering actually occurs depends on a number of factors, including market conditions. Any Offering will only be made pursuant to a
Purchase Agreement, the terms of which are subject to negotiation between the Company, the Guarantors and the Initial Purchasers. 
  
 Delivery of an executed signature page to this letter by facsimile shall be effective as delivery of a manually executed signature page of this letter.

  

	
	 Very truly yours,

	
	 
	

	 (Name)

  

	
	
	 
	

	 (Address)

  

 2Waiver and Amendment Dated March 30, 2004

 Exhibit 10.1 
  
 WAIVER AND AMENDMENT (this “Amendment”) dated as of March 30, 2004 to the Credit Agreement
dated as of August 4, 1999, as amended and restated as of November 25, 2003 (as amended, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”), among ON SEMICONDUCTOR CORPORATION
(formerly known as SCG HOLDING CORPORATION, “Holdings”), SEMICONDUCTOR COMPONENTS INDUSTRIES, LLC (the “Borrower”), the LENDERS party thereto, and JPMORGAN CHASE BANK (formerly known as The Chase Manhattan Bank), as
administrative agent. 
  
 A. Pursuant to the Credit Agreement, the
Lenders have extended credit to the Borrower, and have agreed to extend credit to the Borrower, in each case pursuant to the terms and subject to the conditions set forth therein. 
  
 B. Holdings and the Borrower have requested that the Lenders agree to (a) waive the provisions of the Credit Agreement with
respect to the prepayment of Tranche E Term Loans with 50% of the Net Proceeds of the issuance of certain Equity Interests by Holdings or Permitted Convertible Debt and (b) amend certain provisions of the Credit Agreement to (i) permit the Borrower
to purchase, redeem and retire a portion of the First Lien Notes, the Second Lien Notes and the Subordinated Debt with the proceeds of such Equity Interests or Permitted Convertible Debt and (ii) permit the Borrower to incur Indebtedness for the
purpose of refinancing First Lien Notes, Second Lien Notes and Subordinated Debt. 
  
 C. The undersigned Lenders are willing so to waive such provisions and to amend the Credit Agreement pursuant to the terms and subject to the conditions set forth herein. 
  
 D. Capitalized terms used but not defined herein have the meanings assigned
to them in the Credit Agreement, as amended hereby. 
  
 Accordingly, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and subject to the conditions set forth herein, the parties
hereto hereby agree as follows: 
  
 SECTION 1. Amendments to
Section 1.01. Section 1.01 of the Credit Agreement is amended by adding the following defined terms in the appropriate alphabetical order: 
  
 “Permitted Refinancing Indebtedness” means Indebtedness of the Borrower incurred to refinance all or any portion of the First Lien Notes,
the Second Lien Notes or the Subordinated Debt; provided that: 
  
 (a) such refinancing Indebtedness matures no earlier than, and does not require any scheduled principal payments prior to, the scheduled maturity date of the Indebtedness being refinanced; 
  
 (b) such refinancing Indebtedness is issued in a capital
market transaction; 
  

 (c) the principal amount of such refinancing Indebtedness does not exceed the principal
amount of the Indebtedness being refinanced plus the amount of any applicable redemption premiums and any fees (other than fees payable to Affiliates) and expenses incurred in connection with the issuance of such refinancing Indebtedness;

  
 (d) the Indebtedness being refinanced is
redeemed, repaid or repurchased during the Refinancing Period, and is thereupon canceled and retired, provided that the proceeds of such refinancing Indebtedness may, at the Borrower’s option, be used to prepay Tranche E Term Loans;

  
 (e) if the Indebtedness being refinanced is
not redeemed, repaid or repurchased on the date that such refinancing Indebtedness is incurred, then the proceeds of such refinancing Indebtedness shall be segregated and held pursuant to an arrangement reasonably satisfactory to the Administrative
Agent to ensure that such proceeds are so applied during the Refinancing Period; 
  
 (f) at the time of and after giving effect to the incurrence of such refinancing Indebtedness, no Default has occurred and is continuing,
and the incurrence of such refinancing Indebtedness and the refinancing of the Indebtedness being refinanced is permitted by the terms of all other Indebtedness of the Borrower and its Subsidiaries (including the First Lien Notes, the Second Lien
Notes and the Subordinated Debt); 
  
 (g) the
Administrative Agent is reasonably satisfied that the terms of such refinancing Indebtedness are no more restrictive in any material respect, or adverse to the interests of the Lenders in any material respect, than the terms of the Indebtedness
being refinanced; 
  
 (h) such refinancing
Indebtedness is no more senior than the Indebtedness being refinanced, it being understood that (i) in the case of a refinancing of First Lien Notes or Second Lien Notes, such refinancing Indebtedness may share in the Collateral securing the
Obligations on the same basis as the Second Lien Notes subject to intercreditor arrangements that, in the reasonable judgment of the Administrative Agent, are no less favorable to the Lenders than those applicable to the Second Lien Notes, (ii)
except as provided in clause (i) above, such refinancing Indebtedness shall be unsecured and (iii) in the case of a refinancing of Subordinated Debt, such refinancing Indebtedness shall be subordinated to the Obligations on terms no less favorable
to the Lenders than the terms of the Subordinated Debt; and 
  
 (i) if such refinancing Indebtedness is Guaranteed by any Subsidiary, such Subsidiary shall have Guaranteed the Obligations and such Subsidiary’s Guarantee shall comply with the conditions and restrictions
applicable to the refinancing Indebtedness Guaranteed thereby as set forth above. 
  
 “Refinancing Period” means the period from and including the date of issuance of any Permitted Refinancing Indebtedness
or consummation of the Specified 2004 Securities Offering and to and including September 30, 2004. 
  
 “Specified 2004 Securities Offering” means one or more offerings and sales by Holdings of (a) its common stock, par value $0.01 per
share, pursuant to a registration statement on Form S-3 to be filed with the Securities and Exchange Commission, (b) Permitted Convertible Debt 

  

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or (c) a combination thereof, in any event, in an aggregate amount (together with the aggregate principal amount of Permitted Refinancing Indebtedness) not
to exceed $300,000,000, provided that (i) such securities are issued on or prior to September 30, 2004, (ii) all Net Proceeds of such securities must be applied during the Refinancing Period for the purpose of purchasing, redeeming and
retiring a portion of the First Lien Notes, the Second Lien Notes, the Subordinated Debt or a combination thereof (or, at the Borrower’s option, to prepay Tranche E Term Loans), and (iii) any proceeds required to be applied as described in
clause (ii) above and not so applied on the date of receipt shall be segregated and held pursuant to an arrangement reasonably satisfactory to the Administrative Agent to ensure that such proceeds are so applied during the Refinancing Period (or, at
the Borrower’s option, to prepay Tranche E Term Loans). 
  
 SECTION 2. Additional Amendments to Section 1.01. Section 1.01 of the Credit Agreement is further amended as follows: 
  
 (a) Clause (c) of the definition of “Prepayment Event” is amended to insert the text “that does not constitute
Permitted Refinancing Indebtedness” after the text “Permitted Convertible Debt”. 
  
 (b) The definition of “Permitted Convertible Debt” is amended to insert the text “ or of Holdings and the Borrower”
after the text “Indebtedness of Holdings”. 
  
 SECTION
3. Amendments to Section 6.01. Section 6.01(a) of the Credit Agreement is amended as follows: 
  
 (a) Clause (xiv) is amended by deleting the text “and” at the end thereof. 
  
 (b) Clause (xv) is amended by substituting the text “;
and” for the text “.”. 
  
 (c)
Section 6.01(a) is further amended by inserting the following new clause (xvi) at the end thereof: 
  
 (xvi) Permitted Refinancing Indebtedness incurred prior to September 30, 2004, provided that the aggregate principal amount of
Permitted Refinancing Indebtedness plus the aggregate proceeds from any Specified 2004 Securities Offering shall not exceed $300,000,000. 
  
 SECTION 4. Amendments to Section 6.08. Section 6.08(b) of the Credit Agreement is hereby amended as follows: 
  
 (a) Clause (vi) is amended by deleting the text
“and” at the end thereof. 
  
 (b)
Clause (vii) is amended by substituting the text “; and” for the text “.”. 
  
 (c) Section 6.08(b) is further amended by inserting the following new clause (viii) at the end thereof: 
  
 (viii) payments on account of the purchase, redemption or
retirement of any First Lien Notes, Second Lien Notes or Subordinated Debt with the Net Proceeds of the 

  

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Specified 2004 Securities Offering, provided that (A) after giving effect to such purchase, redemption or retirement, no Default or Event of Default
shall have occurred and be continuing and (B) any such purchase, redemption or retirement shall be made during the Refinancing Period and otherwise in compliance with the provisions of the First Lien Note Indenture, Second Lien Note Indenture or the
Subordinated Debt Documents, as applicable (it being understood and agreed that any First Lien Notes, Second Lien Notes or Subordinated Debt purchased pursuant to this clause (viii) shall immediately be canceled). 
  
 SECTION 5. Waiver. The undersigned Lenders hereby waive the provisions
of Section 2.11(c)(i)(C) of the Credit Agreement with respect to the prepayment of Tranche E Term Borrowings with 50% of the Net Proceeds of the Specified 2004 Securities Offering and consent to the application of the Net Proceeds of the Specified
2004 Securities Offering as contemplated herein. Such waiver shall automatically expire if the Specified 2004 Securities Offering is not consummated on or prior to September 30, 2004. 
  
 SECTION 6. Amendment Fee. The Borrower agrees to pay to the Administrative Agent, for the account of each Lender that
delivers an executed counterpart of this Amendment at or prior to 4:00 p.m., New York City time, on March 30, 2004, an amendment fee in an amount equal to 0.05% of the sum of such Lender’s Revolving Commitment and outstanding Tranche E Term
Loans as of the date this Amendment becomes effective, provided that such fee shall not be payable unless and until this Amendment becomes effective as provided in Section 8. 
  
 SECTION 7. Representations and Warranties. Each of Holdings and the Borrower represents and warrants to the
Administrative Agent and to each of the Lenders that: 
  
 (a) This Amendment has been duly authorized, executed and delivered by each of Holdings and the Borrower and constitutes a legal, valid and binding obligation of Holdings and the Borrower, enforceable in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 

 
 (b) After giving effect to this Amendment, each of the
representations and warranties of Holdings and the Borrower set forth in the Loan Documents is true and correct on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date, in which case
such representations and warranties are true and correct as of such earlier date. 
  
 (c) Immediately after giving effect to this Amendment, no Default shall have occurred and be continuing. 
  
 SECTION 8. Conditions to Effectiveness. This Amendment shall become
effective on the date that any Permitted Refinancing Indebtedness is incurred or any Equity Interests are issued pursuant to the Specified 2004 Securities Offering (which date shall not be later than September 30, 2004), subject to satisfaction of
the following conditions on or prior to such date: (a) the Administrative Agent shall have received counterparts of this Amendment that, when taken together, 

  

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bear the signatures of Holdings, the Borrower and the Required Lenders, and (b) all fees and other amounts due and payable in connection with this Amendment
or the Credit Agreement, including to the extent invoiced in writing to the Borrower at least two Business Days prior to such date, reimbursement or payment of all reasonable, documented, out-of-pocket expenses (including fees, charges and
disbursements of counsel or other advisors) required to be paid or reimbursed by any Loan Party, shall have been paid or reimbursed, as applicable. 
  
 SECTION 9. Credit Agreement. Except as specifically waived or amended hereby, the Credit Agreement shall continue in full force and effect in
accordance with the provisions thereof as in existence on the date hereof. After the date hereof, any reference to the Credit Agreement shall mean the Credit Agreement as amended or modified hereby. This Amendment shall be a Loan Document for all
purposes. 
  
 SECTION 10. Applicable Law; Waiver of Jury
Trial. (A) THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 (B) EACH PARTY HERETO HEREBY AGREES AS SET FORTH IN SECTION 9.10 OF THE CREDIT AGREEMENT AS IF SUCH SECTION WERE SET FORTH IN FULL
HEREIN. 
  
 SECTION 11. Counterparts. This Amendment
may be executed in two or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute but one agreement. Delivery of an executed signature page to this Amendment by facsimile or other
electronic transmission shall be effective as delivery of a manually signed counterpart of this Amendment. 
  
 SECTION 12. Expenses. The Borrower agrees to reimburse the Administrative Agent for its reasonable, documented, out-of-pocket expenses in
connection with this Amendment, including the reasonable fees, charges and disbursements of Cravath, Swaine & Moore LLP, counsel for the Administrative Agent. 
  
 SECTION 13. Headings. The Section headings used herein are for convenience of reference only, are not part of this
Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Amendment. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective
authorized officers as of the day and year first written above. 
  

			
	 ON SEMICONDUCTOR CORPORATION,

		
	By	 	 /s/    DONALD
COLVIN        

	 Name:
	 	Donald Colvin
	 Title:
	 	Sr. Vice President & Chief Financial Officer

  

			
	SEMICONDUCTOR COMPONENTS INDUSTRIES, LLC,
		
	By	 	/s/    DONALD COLVIN        
	 	 	

	 Name:
	 	Donald Colvin
	 Title:
	 	Sr. Vice President & Chief Financial Officer

  

			
	 JPMORGAN CHASE BANK,
 individually and as Administrative Agent,

		
	By	 	/s/    EDMOND DEFOREST        
	 	 	

	 Name:
	 	Edmond DeForest
	 Title:
	 	Vice President

  

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	 	 	 SIGNATURE PAGE TO AMENDMENT AND WAIVER DATED AS OF MARCH 30, 2004, TO THE CREDIT AGREEMENT DATED AS OF AUGUST 4, 1999, AS AMENDED, AND RESTATED AS OF NOVEMBER 25,
2003, AMONG ON SEMICONDUCTOR CORPORATION, SEMICONDUCTOR COMPONENTS INDUSTRIES, LLC, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE BANK, AS ADMINISTRATIVE AGENT.

  

			
	 	 	Name of Institution: Galaxy CLO 1999-1, Ltd.

  

			
	By:	 	 AIG Global Investment Corp.
 as Collateral Agent

  

			
		
	By	 	 /s/    JOHN G. LAPHAM,
III        

	 Name:
	 	John G. Lapham, III
	 Title:
	 	Managing Director

  
 [Not included in this filing are
numerous signature pages for the numerous banks that are Lenders under the Credit Agreement.] 
  

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