Document:

EXHIBIT 10.1

EIGHTH
AMENDMENT TO

AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT

This Amendment, dated as of June 29, 2007, is made by
and between NETLIST, INC., a Delaware corporation, and NETLIST TECHNOLOGY
TEXAS, L.P., a Texas limited partnership (each a “Borrower” and collectively,
the “Borrowers”), on the one hand, and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Lender”), acting through its
WELLS FARGO BUSINESS CREDIT operating division, on the other hand.

RECITALS

The Borrowers and Wells Fargo Business Credit, Inc., a
Minnesota corporation (“WFBCI”), are parties to an Amended and Restated Credit
and Security Agreement, dated as of December 27, 2003, as amended by a First Amendment
to Amended and Restated Credit and Security Agreement, dated as of June 30,
2004, a Second Amendment to Credit and Security Agreement and Waiver of
Defaults, dated as of December 20, 2005, a Third Amendment to Credit and
Security Agreement, dated as of February 14, 2006, a Fourth Amendment to Credit
and Security Agreement and Waiver of Defaults, dated as of April 18, 2006, a
Fifth Amendment to Credit and Security Agreement, dated as of July 28, 2006, a
Sixth Amendment to Credit and Security Agreement and Waiver of Defaults, dated
as of December 29, 2006, and a Seventh Amendment to Credit and Security
Agreement, dated as of March 21, 2007 (as so amended, the
“Credit Agreement”). Capitalized terms used in these recitals have the meanings
given to them in the Credit Agreement unless otherwise specified.

WFBCI has merged with and into Lender and Lender is
the surviving corporation.

The Borrowers have
requested that the Lender make certain additional amendments to the Credit
Agreement, which the Lender is willing to make pursuant to the terms and
conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and
of the mutual covenants and agreements herein contained, it is agreed as
follows:

1.             Defined Terms.

(a)           Capitalized terms used in this
Amendment which are defined in the Credit Agreement shall have the same meanings
as defined therein, unless otherwise defined herein.

(b)           The following definition set forth in
Section 1.1 of the Credit Agreement is hereby amended in its entirety as
follows:

“Foreign Accounts Eligibility Period” means until July 31, 2008.

 1
 

2.             Bank and Brokerage Statements.  A new clause (r) is hereby added to Section
6.1 immediately following clause (q) thereof as follows:

(r)            Monthly Bank and Brokerage  Statements.  As soon as available and in any event within
20 days after the end of each month, the Borrowers will deliver to the Lender copies
of their most recent bank and brokerage account statements together such
additional information with respect thereto as the Lender may in its discretion
require.

3.             Financial Covenants.  Section 6.2 of the Credit Agreement is hereby
amended in its entirety as follows:

Section 6.2             Financial Covenants.

(a)           Minimum
Book Net Worth.  The
Borrowers will maintain at all times Netlist’s Book Net Worth, determined as at
the end of each month, at an amount not less than $42,600,000.

(b)           Minimum
Net Income (Maximum Net Loss). 
The Borrowers will achieve, for each period described below, Net Income (or
Net Loss) of not less than (or more than, as applicable) the amount set forth
for each such period (numbers appearing between “< >” are negative):

	
  Period

  	
   

  	
  Minimum Net Income / Maximum Net Loss

  	
   

  
	
  7/1/07 – 9/30/07

  	
   

  	
  <$1,500,000>

  	
   

  
	
  7/1/07 – 12/31/07

  	
   

  	
  <$2,000,000>

  	
   

  

(c)           Capital Expenditures.  The Borrowers will not incur or contract to
incur Capital Expenditures of more than $6,000,000 in the aggregate during the fiscal
year ending December 31, 2007.

(d)           Stop
Loss.  The Borrowers will
not, during any single month or in any two consecutive months during the
periods indicated below, suffer a Net Loss in excess of the amounts indicated
in the table below opposite the applicable period:

	
  Period

  	
   

  	
  Maximum One Month Net

  Loss

  	
   

  	
  Maximum Two Consecutive

  Months Net Loss

  	
   

  
	
  7/1/07 –
  10/31/07

  	
   

  	
  <$600,000>

  	
   

  	
  <$900,000>

  	
   

  
	
  11/1/07 and thereafter

  	
   

  	
  <$400,000>

  	
   

  	
  <$700,000>

  	
   

  

(e)           Intentionally Deleted.

 2
 

(f)            Minimum Liquidity.  The Borrowers will maintain at all times, determined
as of the end of each month, the sum of their cash and cash equivalents at an
amount not less than $20,000,000.

4.             Replacement
Exhibit C.  Exhibit C
attached to the Credit Agreement is hereby replaced with Exhibit C attached to
this Amendment.

5.             No Other
Changes. Except as explicitly amended by this Amendment, all of
the terms and conditions of the Credit Agreement shall remain in full force and
effect and shall apply to any advance or letter of credit thereunder.

6.             Amendment
Fee.
The Borrowers shall pay the
Lender a fully earned, non-refundable fee in the amount of $50,000 (“Amendment
Fee”) in consideration of the Lender’s execution and delivery of this Amendment.  The Amendment Fee shall be due and payable as
follows: (i) $25,000 upon execution of this Amendment; and (ii) $25,000 upon
the earlier to occur of (x) January 31, 2008 or (y) the Termination Date;
provided that the second installment of the Amendment Fee shall be waived if no
Event of Default has occurred and is continuing as of December 31, 2007.

7.             Conditions Precedent.
This Amendment shall be effective when the Lender shall have received an
executed original hereof, together with each of the following, each in
substance and form acceptable to the Lender in its sole discretion:

(a)           The first installment of the
Amendment Fee; and

(b)           Such other matters as the Lender may
require.

8.             Representations and
Warranties. Each Borrower hereby represents and warrants to the
Lender as follows:

(a)           Such Borrower has all requisite power
and authority to execute this Amendment, to perform all of its obligations
hereunder, and this Amendment has been duly executed and delivered by such Borrower
and constitute the legal, valid and binding obligation of such Borrower,
enforceable in accordance with their terms.

(b)           The execution, delivery and
performance by each Borrower of this Amendment has been duly authorized by all
necessary corporate action and do not (i) require any authorization,
consent or approval by any governmental department, commission, board, bureau,
agency or instrumentality, domestic or foreign, (ii) violate any provision
of any law, rule or regulation or of any order, writ, injunction or decree
presently in effect, having applicability to such Borrower, or the articles of
incorporation or by-laws of such Borrower, or (iii) result in a breach of
or constitute a default under any indenture or loan or credit agreement or any
other agreement, lease or instrument to which such Borrower is a party or by
which it or its properties may be bound or affected.

(c)           All of the representations and
warranties contained in Article V of the Credit Agreement are correct on and as
of the date hereof as though made on and as of such date, except to the extent
that such representations and warranties relate solely to an earlier date.

 3
 

9.             References.
All references in the Credit Agreement to “this Agreement” shall be deemed to
refer to the Credit Agreement as amended hereby; and any and all references in
the Security Documents to the Credit Agreement shall be deemed to refer to the
Credit Agreement as amended hereby.

10.           No Waiver.  The execution of this Amendment and acceptance of any documents
related hereto shall not be deemed to be a waiver of any Default or Event of
Default under the Credit Agreement or breach, default or event of default under
any Security Document or other document held by the Lender, whether or not
known to the Lender and whether or not existing on the date of this Amendment.

11.           Release.

(a)           Each Borrower  hereby
absolutely and unconditionally releases and forever discharges the Lender, and
any and all participants, parent corporations, subsidiary corporations,
affiliated corporations, insurers, indemnitors, successors and assigns thereof,
together with all of the present and former directors, officers, agents and
employees of any of the foregoing, from any and all claims, demands or causes
of action of any kind, nature or description, whether arising in law or equity
or upon contract or tort or under any state or federal law or otherwise, which such
Borrower has had, now has or has made claim to have against any such person for
or by reason of any act, omission, matter, cause or thing whatsoever arising
from the beginning of time to and including the date of this Amendment, whether
such claims, demands and causes of action are matured or unmatured or known or
unknown.  Each Borrower certifies that it
has read the following provisions of California Civil Code Section 1542:

A general release does not extend to claims which the
creditor does not know or suspect to exist in his or her favor at the time of
executing the release, which if known by him or her must have materially
affected his or her settlement with the debtor.

(b)           Each Borrower understands and
acknowledges that the significance and consequence of this waiver of California
Civil Code Section 1542 is that even if it should eventually suffer additional
damages arising out of the facts referred to above, they will not be able to
make any claim for those damages. Furthermore, each Borrower acknowledges that
it intends these consequences even as to claims for damages that may exist as
of the date of this release but which it does not know exist, and which, if
known, would materially affect its decision to execute this Agreement,
regardless of whether its lack of knowledge is the result of ignorance,
oversight, error, negligence, or any other cause.

12.           Costs and Expenses.
The Borrowers hereby reaffirm their agreement under the Credit Agreement to pay
or reimburse the Lender on demand for all costs and expenses incurred by the
Lender in connection with the Loan Documents, including without limitation all
reasonable fees and disbursements of legal counsel. Without limiting the
generality of the foregoing, the Borrowers specifically agree to pay all fees
and disbursements of counsel to the Lender for the services performed by such
counsel in connection with the preparation of this Amendment and the documents
and instruments incidental hereto. The Borrowers hereby agree that the Lender
may, at any time or from time to time in its sole discretion and without
further authorization by the Borrowers, make a loan to the Borrowers under the
Credit Agreement, or apply the proceeds of any loan, for the purpose of paying
any such fees, disbursements, costs and expenses, and the Amendment Fee.

13.           Miscellaneous.
This Amendment may be executed in any number of counterparts, each of which
when so executed and delivered shall be deemed an original and all of which
counterparts, taken together, shall constitute one and the same instrument.

[remainder
of this page intentionally left blank]

 4

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed as of the date
first written above.

	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION

  Through its Wells Fargo Business Credit

  	
   

  	
  NETLIST, INC.

  
	
  operating division

  	
   

  	
  By:

  	
  /s/ Chun K. Hong

  
	
   

  	
   

  	
  Name: Chun K. Hong

  
	
   

  	
   

  	
  Its: President

  
	
  By

  	
  /s/ Josephine
  Camalian

  	
   

  	
   

  
	
  Name: Josephine
  Camalian

  	
   

  	
   

  
	
  Its   Vice
  President

  	
   

  	
  NETLIST TECHNOLOGY TEXAS L.P.

  
	
   

  	
   

  	
  By: Netlist Holdings GP, Inc., its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Chun K. Hong

  
	
   

  	
   

  	
  Name: Chun K. Hong

  
	
   

  	
   

  	
  Its:  PresidentExhibit 10.1

“CONFIDENTIAL TREATMENT
OF CERTAIN INFORMATION CONTAINED IN THIS DOCUMENT HAS BEEN REQUESTED BY WJ
COMMUNICATIONS, INC.  THE CONFIDENTIAL
PORTIONS OF THIS DOCUMENT INDICATED WITH ASTERISKS (***) HAVE BEEN OMITTED AND HAVE
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.”

Wafer
Manufacturing and Supply Agreement

This Wafer
Manufacturing and Supply Agreement (“Agreement”) is made and entered into this     
day of May, 2007, by and between Amptech,
Inc., a Delaware corporation having its principal place of business
at 5776-D Lindero Canyon Road, #431, Westlake Village, California 91362
(hereinafter “AMPTECH”) and
WJ  Communications,
Inc.,  a Delaware
corporation having its principal place of business at 401 River Oaks Parkway
San Jose, CA 95134 (hereinafter  “WJ”). (WJ and AMPTECH shall
also sometimes be referred to herein together as the “Parties” or individually as a “Party”).

WITNESSETH:

WHEREAS,
AMPTECH is a semiconductor company;

WHEREAS,
AMPTECH is acquiring certain assets of WJ pursuant to that
certain Asset Purchase Agreement of even date (the “Asset Purchase Agreement”);

WHEREAS,
subsequent to the closing under the Asset Purchase Agreement,
WJ desires to pay AMPTECH to manufacture and supply WJ with wafers utilizing WJ’s
wafer production processes;

WHEREAS,
WJ has developed certain proprietary process technology associated with wafer
production products, and desires to provide such technology to AMPTECH  for the purpose of manufacturing wafers for
WJ and, under certain circumstances, as defined in the License Agreement
between the Parties of even date (the “License Agreement”)
will license AMPTECH to produce wafers using certain proprietary process
technology for AMPTECH and other customers of AMPTECH;

 WHEREAS,  AMPTECH is willing to manufacture and supply
wafers to WJ utilizing WJ’s wafer production processes; and

WHEREAS,
the Parties desire to establish the terms and conditions for
the manufacture of wafers by AMPTECH and the purchase of wafers by WJ.

NOW,
THEREFORE, in consideration of the mutual promises and
agreements of the Parties contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties agree as follows:

1.             DEFINITIONS

1.1           “Confidential Information means any and all
information (in any and every form and media) not generally known in the
relevant trade or industry, which was obtained from any Party in connection
with this Agreement or the License Agreement, the respective rights and
obligations of the Parties hereunder, including, without limitation, (a)
information relating to trade secrets of such Party, (b) information relating
to existing or contemplated products, services, technology, ideas, designs,
processes, formulae, research and development (in any and all stages) of such
Party, (c) information relating to the Wafers or any of the patents, trade
secrets, know-how, and other technology and information relating to the Wafers
and their design, and (d) information relating to forecasts, projections,
sales, business plans, methods of doing business, sales or marketing methods,
current and contemplated markets, current and potential customers, strategic
partners, acquirers or  investors,
customer lists, customer usages and/or requirements and supplier information of
such Party.

1.2           “Copyrights” means: (a)  any rights in original works of authorship
fixed in any tangible medium of expression as set forth in the United States
Copyright Act, 17 U.S.C. § 101 et. seq.; (b) 
all registrations and applications to register the foregoing anywhere in
the world; (c)  all foreign counterparts
and analogous rights anywhere in the world; and (d)  all rights in and to any of the foregoing.

 1.3                              “Die” means an
individual integrated circuit or components which when completed create an
integrated circuit.

 1.4                              “Embedded Third Party Technology”
means third party software or hardware embedded as part of the WJ Technology
and/or in Improvements thereto.

1.5           “Facilities” means AMPTECH’s physical
fabrication facilities located at 5130 McCarthy Boulevard, Milpitas,
California.

1.6           “AMPTECH Services” has the meaning set forth
in Section  2.1.

1.7           “AMPTECH Technology” has the meaning set
forth in Section 9.2

1.8           “Gross Die per Wafer” (“GDW”) means the total
quantity of Die candidates on each Wafer, whether or not the Die is operational
when the Wafer has completed the manufacturing process.

1.9           “Improvements” means with respect to any
Technology, all discoveries, innovations, improvements, enhancements,
derivative works, or modifications of or to such Technology.

1.10         “Intellectual Property Rights” means any and
all: (a)  Copyrights, mask work rights,
trademarks, and Patents; (b)  rights
relating to innovations, know-how, trade secrets, and confidential, technical,
and non-technical information; (c)  moral
rights, author’s rights, and rights of publicity; and (d)  other industrial, proprietary and
intellectual property related rights anywhere in the world, and all
applications for, renewals and extensions of the foregoing now or hereafter
filed, regardless of whether or not such rights have been registered with the
appropriate authorities in such jurisdictions in accordance with the relevant
legislation.

1.11         “Jointly Developed Technology” means
Technology that is written, created, or otherwise made or acquired not solely
by one or more employees of one Party, but is created jointly by employees or
contractors of WJ together with employees or contractors of AMPTECH during and
in the course of the transactions contemplated by this Agreement, provided
that: (a)  with respect to copyrightable
material, each contributing Party prepared the work with the intention that
their contributions be merged into inseparable or interdependent parts of a
unitary whole; (b)  with respect to inventions
subject to patent protection, each contributing Party made some original
contribution to the inventive thought and to the final solution; and (c)  with respect to matter subject to trade
secret protection, each contributing Party made substantial contributions to
such matter.

1.12         “Knowledge”
shall mean the actual knowledge of the officers, directors, and
director-level employees of AMPTECH.

1.13         “Lot” means a group of wafers which are
processed simultaneously. Each Lot will be assigned a specific alpha/numeric
identification that distinguishes it from any other group that contains the
same type of Die so that each Lot can be separately identified.

1.14        
“Minimum Yield” means, with respect to a particular  Wafer, the minimum acceptable Yield for such
Wafer as per the Specifications.

1.15          “Net Die per Wafer” (“NDW”) means the net
number of functional Die on each Wafer after the Wafer has completed the wafer
probe testing.

1.16         “Patents” means: (a)  patents and patent applications, worldwide,
including all divisions, continuations, continuing prosecution applications,
continuations in part, reissues, renewals, reexaminations, and extensions 

thereof and any
counterparts worldwide claiming priority therefrom; utility models, design
patents, patents of importation/confirmation, and certificates of invention and
like statutory rights; and (b)  all
rights in and to any of the foregoing.

1.17         “Process” the proprietary wafer manufacturing
processes of WJ to be provided by WJ to AMPTECH for use by AMPTECH in its
Facilities to manufacture wafers subject to the terms and conditions of the
License Agreement.

1.18         “Process Control Monitor
(PCM)” means a collection of test structures that are included
on a wafer for the purpose of monitoring the Process and establishing that the
Process was implemented correctly.

1.19         Purchase Order”
has the meaning set forth in Section 
7.1. 

1.20         “Qualify” or “Qualification” means that the
Process has been approved by WJ for volume manufacturing of the Wafers at the
Facilities because the Wafers have been produced pursuant to the Process as
evidenced by the PCM test results.

1.21         “Scrap” means any Wafer or Die, in any stage
of completion, without regard to its ability to function, that is not in
conformance with the requirements of the Specifications for Wafers to be sold
to WJ.

1.22         “Specifications” mean the technical
specifications provided by WJ for the Process and the manufacture of the Wafers
by AMPTECH including the specifications described in Appendix A.

1.23         “Target Yield” means, with respect to a
particular  Wafer, the Target Yield for
such Wafer as set forth in Appendix B. Notwithstanding the foregoing, the
Target Yield is subject to post qualification confirmation and adjustment pursuant
to Section  3.5 and Appendix B.

1.24         “Technical Information” means the technical
information and materials provided or to be provided by WJ to AMPTECH.

1.25         “Technology” means any and all technical
information, specifications, drawings, records, documentation, works of
authorship or other creative works, ideas, algorithms, models, databases,
ciphers/keys, systems architecture, network protocols, research, development,
and manufacturing information, software (including object code and source
code), application programming interfaces (APIs), innovations, mask works,
logic designs, circuit designs, technical data, processes and methods.

1.26         “Term” has the meaning set forth in
Section  14.1.

1.27         “Verification Test Program” has the meaning
set forth in Section 3.5(b).

1.28         “Wafers”
means the GaAs (gallium arsenide) Wafers described in Appendix B which will be
manufactured by AMPTECH for WJ using the Process.

1.29         “WJ Technology” has the meaning set forth in
Section 9.1.

1.30         “Yield” means the percentage represented by
Net Die per Wafer (NDW) divided by Gross Die per Wafer (GDW).

2.             AMPTECH SERVICES AND FACILITIES

2.1             AMPTECH Services. AMPTECH
shall  manufacture the Wafers at its
Facilities utilizing the Process provided by WJ, and  sell and deliver to WJ  the Wafers, all in accordance with the terms
and conditions set forth in this Agreement (the “AMPTECH Services”).  AMPTECH shall not outsource or delegate to
any third party the manufacture of the Wafers.

2.2             Facilities. All manufacturing
of  Wafers shall take place at the
Facilities. If AMPTECH desires to relocate the 
manufacturing of the Wafers to another facility, it shall provide WJ
with at least *** days prior notice of its intent to  relocate to a proposed new facility. If WJ
notifies AMPTECH within ***  days of its
objection to the new location, AMPTECH shall not transfer the manufacture of
the Wafers to the new facility and shall continue to manufacture the Wafers at
the Facilities, or AMPTECH will provide WJ with a *** month opportunity to make
end of life purchases of Wafers before AMPTECH can terminate this Agreement and
complete the relocation to the new facility. WJ will provide notice within ***
days of AMPTECH’s notification to WJ of its intention to continue with the new
facility. Approval to relocate shall not be unreasonably withheld.

3.             PRODUCTION, QUALITY, RELIABILITY AND CONTROL

3.1            Wafer Technical Information.

(a)              WJ will provide the Technical
Information and assistance relating to the Wafers to AMPTECH in accordance
with  Appendix D.

(b)              AMPTECH will not make any changes
or modifications to the qualified process without WJ’s prior written approval,
which may be granted or withheld in WJ’s sole and absolute discretion.

3.2                              WJ
Technology Improvements by AMPTECH. 
AMPTECH shall provide WJ with prompt written notice with respect to any
Technology or Intellectual Property Rights conceived, developed, or reduced to
practice by or on behalf of AMPTECH or any other person that constitutes an
Improvement to any WJ Technology. 
Thereafter, at WJ’s request, AMPTECH shall make available to WJ
appropriate personnel with suitable knowledge and understanding of such
Improvement to describe and explain such Improvement to designated WJ personnel
and to otherwise provide such WJ personnel with sufficient information and
materials satisfactory to WJ.

3.3           Baseline Modifications:

(a)                                  The
Process baseline may be further refined by mutual agreement. AMPTECH will
obtain written approval of WJ before making any modifications to the baseline
manufacturing Process, materials, or tooling. Approval shall not be
unreasonably withheld.

(b)                                 The
Parties shall confirm the Target Yield and Minimum Yield for the Wafers is
acceptable to WJ.

(c)                                  AMPTECH
will process and deliver wafers that meet the PCM test specifications.  If material does not meet the Target Yield,
the Parties will work together to determine the root cause and corrective
actions.

3.4           Quality Culture.  AMPTECH’s quality systems shall include
Statistical Process Control (SPC) with statistically valid limits. AMPTECH will
establish a culture which responds to established limits, and will stop the
manufacturing line if these limits are found out of tolerance.

3.5             Specification Testing and
Compliance.  AMPTECH will produce
Wafers for WJ that meet the 
Specifications. In that regard:

(a)           AMPTECH shall conduct in line process
monitoring according to testing procedures and use test equipment reasonably
acceptable to WJ. AMPTECH must have sufficient testing capability to handle
testing requirements, including the provision of engineering analysis of test
Wafers sufficient to (i)  identify
potential product issues (i.e. any failure to fully meet Specifications or
achieve Minimum Yields) at the earliest possible stage and (ii)  make necessary adjustments to the Wafers.

***         CONFIDENTIAL MATERIAL REDACTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

(b)           After Wafer completion, AMPTECH shall
conduct testing in accordance with the Specifications (“PCM
Test Program”), and inspect and confirm that the Wafers conform
to the applicable Specifications.

AMPTECH shall neither
ship nor bill WJ for any Wafer that  to
the Knowledge of AMPTECH fails to meet the PCM Test requirements and the
Quality and Reliability Standards unless specifically instructed in writing by
WJ to

do so. AMPTECH shall
notify WJ of any Wafer that is below the PCM Test requirements, and WJ may, at
its discretion, agree to accept delivery of such Wafer at a mutually agreed
upon price. AMPTECH must notify WJ in advance of shipment of those Wafers that
do not comply with the foregoing criteria.

(c)           If AMPTECH or WJ detects any wafer
fabrication related defects in any Wafers, AMPTECH shall promptly provide WJ
with a corrective action plan to correct the failure mechanisms and/or defects.
WJ may review AMPTECH’s quality measurement and control systems at any time,
and AMPTECH shall comply with all commercially reasonable recommendations made
by WJ as a result of any such review.

(d)           From time to time WJ may desire to
update, revise, or modify the Specifications for the Wafers.  If AMPTECH and WJ mutually agree on the updates, revisions, and/or
modifications,  then AMPTECH will
use reasonable efforts to implement all revisions, updates, or modifications as
soon as practicable. If such changes impact Wafer Yield, the Parties shall
re-set Target Yields using the same procedure as initially used by WJ. AMPTECH
shall advise WJ of any cost and schedule impact, and the date and Lot number of
implementation of the revision, update, or modification, all of which shall be
subject to WJ’s written approval. Any requalification required as a result of
the revisions, updates, or modifications will be the responsibility of WJ.

(e)           The results from AMPTECH testing
processes shall be accessible and available to WJ for review and download to WJ
records at the conclusion of each test Lot.

3.6           Failure and Defect Reporting.  The Parties shall notify each other of any
detected failure mechanisms and/or defects which are present, or which they
suspect might be present, in completed Wafers. AMPTECH shall use reasonable
efforts to correct such failure mechanisms and/or defects as promptly as
possible within a time frame acceptable to WJ and reasonable to AMPTECH.

3.7           Reliability Records and Data.  Without limitation of any requirements in the
Quality and Reliability Standards, AMPTECH agrees to provide the following
information relating to the quality or reliability of the Wafers and the
quality systems used to comply with these standards and specifications.

(a)           AMPTECH will maintain Lot history
records for a period of five (5)  years.
WJ shall have access to all Lot history records concerning all Wafers at
any  time.

(b)           AMPTECH agrees to provide reliability
data which demonstrates the ability of mutually
agree on updates, revisions, and/or modifications to the Process used
for Wafers to meet WJ’s Quality and Reliability Standards as set forth in
Appendix E.  Any exceptions to these
criteria will be reviewed on a product-by-product basis. WJ shall have the
right to use reliability data concerning Wafers for the purposes of preparing
sales and promotional information concerning Wafers. AMPTECH’s reliability
testing methods and conditions shall be subject to the review of WJ, and shall
be changed upon WJ’s request, and agreed to by AMPTECH, such agreement not to
be unreasonably withheld.

(c)           WJ may conduct an on-site inspection
and audit of the process and manufacturing records relevant to the Wafers
during normal business hours upon twenty four (24) hours advance notice to
AMPTECH.   Any inspection or audit will
be conducted at WJ’s sole expense.

(d)           AMPTECH agrees to maintain sufficient
documentation regarding all Wafers sold to WJ for five (5)  years after shipment. All Wafers shall be
traceable to the assigned Lot. Lot traceability for Wafers shall be maintained
throughout the entire process from fabrication through verification testing,
packing, and shipment. Traceability and full history for Wafers shall include
applicable wafer fabrication process recipes, substrate vendor identification
and Lot number, quality control data, Process deviation notes and probe data as
well as assembly records and deviations, verification test results, visual
inspection results, burn-in conditions, and final test data. WJ

shall have the right to
limit and approve substrate and other materials suppliers.  Supplier approval will not be unreasonably
withheld, and rejection must be based on objective documented criteria showing
how the substrate and material suppliers will cause AMPTECH to fail to meet the
Specifications.

3.8           Process Control Information.  Upon WJ’s written request, AMPTECH shall
provide WJ with Process control information as set forth in the Specifications.
Such information may include: Process and electrical test yield results,
calibration schedules and logs for equipment, environmental monitor information
for air, gases, and DI water, documentation of operator qualification and
training, documentation of traceability, process verification information, and
trouble report currently available from AMPTECH’s document control center in a
format pursuant to AMPTECH’s standard document retention policy.

3.9           Scrap Disposal.  AMPTECH shall return Scrap which cannot be
reclaimed to WJ at WJ’s request, or otherwise destroy and properly dispose of
all Scrap in order to prevent any unauthorized sale or other disposition of
any  Wafers. AMPTECH will maintain Scrap
procedures and will record all products scrapped including Lot history, reason
for scrap, and WJ’s approval for scrap. WJ shall have the rights to audit the
scrap procedures and to witness scrap of the 
material.

3.10         Manufacturing Metrics.  AMPTECH agrees to provide pertinent
manufacturing metrics to WJ, including but not limited to, data regarding
process yield, cycle time and Process development.

3.11         Deficiency Expectations.  WJ expects consistent, high quality wafer
fabrication processing and services from AMPTECH, such that a Die yield
expectation can be predicted for WJ’s products based on the area of a
particular Die. It is understood that WJ’s design and specifications also
influence this metric. The functional test yields expected by WJ are equal to
or greater than the yields that WJ has experienced in the past for their
products of identical design to the products produced in this Agreement.  WJ shall provide AMPTECH data illustrating
the yield performance and Die size for each device.   A Target Yield will be established on a per
device basis using WJ’s historical data (see Appendix B).

                  WJ will inform AMPTECH of
material exhibiting unexpectedly low Yields. AMPTECH is willing to assist WJ,
to the limits of its existing capabilities, at no additional cost in the
evaluation of the low Yield, and in identification of the necessary activities
to correct such low Yields.

3.12         Shippable Wafer.  A good wafer is defined as one which passes
the PCM tests appropriate for the version of the Process (i.e. MESFET, HFET, 5V
or 28V), to the extent that such specific tests are defined in Attachment.  Wafers will be considered shippable based
upon the PCM tests meeting acceptable parametric ranges.  For any and all wafers where the PCM data
does not meet the mutually defined acceptable criteria, WJ and AMPTECH will
determine a pro rated wafer price.

4.             PARTIES’ ACTIVITIES

4.1           Site Inspections.  WJ and its current employees, customers,
strategic partners, investors, and acquirers shall have the right to visit
AMPTECH’s Facilities to inspect the Facilities and fabrication of  the Wafers, as well as conduct other activities
contemplated by this Agreement, after providing reasonable notice to AMPTECH,
as long as such WJ personnel comply with AMPTECH’s security policies and sign a
non-disclosure agreement acceptable to AMPTECH. Such visits shall be conducted
during AMPTECH’s normal working hours and may be stopped by AMPTECH, if
disruptive to AMPTECH operations. WJ may also assign WJ employees to work at
the Facilities manufacturing the Wafers on an as needed or other mutually
agreed basis. AMPTECH shall grant these employees full access to employee
parking facilities and appropriate sections of the Facilities including the
clean room where the Wafers are manufactured or placed. AMPTECH shall provide
such WJ employees with secured office space and full access to conference room,
food and break facilities. AMPTECH shall allow WJ employees to be full and
active participants on problem solving teams with respect to the manufacturing
of the Wafers.

4.2           Records Inspections.  In addition to WJ’s other inspection rights
set forth elsewhere in this Agreement, WJ shall have the right to inspect the
books and records (whether maintained in documentary form or as computer files)
of AMPTECH related to this Agreement during normal business hours upon one week’s
written advance notice to AMPTECH.

4.3           Financial Reports and Notification
of Financial Impairment .  AMPTECH
agrees, for so long as the Agreement remains in effect, to furnish to WJ:  (i) within 90 days after the end of each
fiscal year, audited annual financial statements (if an audit is performed),
setting forth in comparative form the figures for the previous year (or if not
yet completed, then a draft thereof, followed by the final thereof as soon a
available); (ii) within 45 days of each of the first three fiscal quarters of each
year, the quarterly unaudited financial statements or such summaries that are
provided to AMPTECH’s Board of Directors if unaudited financial statements have
not been prepared; (iii) within 30 days after the end of each month, monthly
financial summaries which shall be limited to the monthly cash balance and
revenue for the period; (iv) within 30 days after the end of each quarter, a
rolling six month forecast of cash flow; and (v) within 60 days after the first
day of each fiscal year, an annual budget. AMPTECH further agrees to
immediately notify WJ  if (i) based on
AMPTECH’s then current three month forecast of cash flow, all or substantially
all of AMPTECH’s available cash balance for working capital would be reasonably
likely to be consumed or (ii) AMPTECH suffers any material adverse change in
its financial condition that is reasonably likely to  impair AMPTECH’s ability to perform its
obligations under this Agreement.

5.             PRICING AND PAYMENTS

5.1           Wafer Pricing.  The price for Wafers ordered and accepted by
WJ and delivered by AMPTECH in accordance with this Agreement shall be as set
forth in Appendix C.

5.2           Invoicing and Payment Terms.  AMPTECH shall invoice WJ upon shipment of the
Wafers. AMPTECH’s invoices shall set forth the amounts due from WJ to AMPTECH
for such shipment, and shall contain sufficient detail to allow WJ to determine
the accuracy of the amount(s) billed. The invoice shall be dated and delivered
as of the date of shipment and payments shall be on *** (***) days net terms.
All payments will be in United States of America dollars. WJ shall have the
right to offset any disputed claims or other amounts due from AMPTECH against
WJ’s payment obligations under any invoice.  
Upon resolution of any dispute, payment is due immediately from WJ.  If WJ pays invoices after *** (***) days from
delivery, interest shall apply at the lesser of the Comerica Bank prime rate
plus 2%, compounded annually, or the highest rate allowable by law.

5.3           Taxes.  WJ
is responsible for all taxes related to the purchase of finished Wafers.

6.             CAPACITY PLANNING AND FORECASTING

6.1           Forecasts.  In order to allow AMPTECH to plan its foundry
capacity and to order raw materials in due time, WJ shall give to AMPTECH a ***
(***) month forecast for its estimated monthly Wafer requirements per product
based on reasonable available information. 
The first *** (***) months are in the form of firm, noncancellable
obligation to place Purchase Orders pursuant to section 7.1 (“Firm Order Quantities”).  The second *** months of purchase orders
maybe rescheduled one time up to ***% of the total (***) month quantity.  The issuance of purchase orders under section
7.1 establishes the legal obligation and not the forecast provided under this section
6.1.  The trailing six months are treated
as a nonbinding forecast.

6.2           Capacity Commitment.

(a)           AMPTECH shall reserve the capacity
and agrees to maintain the ability to manufacture, at the stated lead times,
the minimum volume of Wafers per period for the last forecast under Section 6.1
accepted by AMPTECH plus 15% additional capacity in reserve per Section 6.2
(b).

(b)           Within ten (10)  days after receipt of WJ’s forecast, AMPTECH
shall provide WJ with a written plan detailing AMPTECH’s manufacturing capacity
commitments for the forecast period. AMPTECH shall, consistent with and subject to the limitations of the maximum staffed
capacity of the wafer fabrication facility, use commercially reasonable effort
to allocate sufficient capacity to be able to provide up to *** (***) of
the forecast and shall use commercially reasonable efforts to provide
additional capacity as requested.

***         CONFIDENTIAL MATERIAL REDACTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

(c)           AMPTECH shall provide current-quarter
weekly wafer output updates to the forecast. This weekly update would
comprehend anticipated changes to forecast related to deviations from planned
cycle-time. WJ will use the weekly updates to direct AMPTECH activities, including
the disposition of Wafers for shipping.

(d)           AMPTECH shall provide WJ prompt
written notice if AMPTECH becomes aware of any circumstance which may constrain
its capacity to manufacture Wafers in accordance with the then current
forecast.

7.             ORDER, DELIVERY AND ACCEPTANCE

7.1           Order Placement and Firm Orders.  WJ shall place written orders for the Wafers
to be purchased under this Agreement via a purchase order in a form acceptable
to AMPTECH (each, a “Purchase
Order”).  WJ shall place
Purchase Orders for quantities of Wafers at least as high as the Firm Order
Quantities set forth in the Forecasts. 
The Purchase Order shall include delivery instructions included thereon
or issued in connection with the written order that reference the applicable
written order and provide detail regarding the mix, quantities, and requested
delivery date for the Wafers. Firm Purchase Orders will be placed monthly, no
later than *** (***) business days prior to the end of each calendar month. WJ
may adjust the device mix prior to AMPTECH starting material, but the total
volume of Wafers cannot be decreased without the consent of AMPTECH after the
Purchase Order has been accepted. Modifications to the mix and quantity of
Wafers to be started in any given week may be requested in writing by WJ no
later than Thursday of the previous week. AMPTECH shall use commercially
reasonable efforts to accept any Purchase Order that is within the volume of
the most recent *** (***) month forecast or up to ***% greater.

7.2           Order Acceptance.

(a)           AMPTECH shall acknowledge all
Purchase Orders and confirm all delivery schedules and instructions therein
within two (2)  business days following
its receipt of Purchase Order. AMPTECH may not reject Purchase Orders based on
ordering instructions that conform to the terms of this Agreement and AMPTECH
may not reject the Purchase Order based on the quantity of Wafers ordered
unless, either the quantity is less than the Firm Order Quantities or, and then
only to the extent that, the quantity is more than ***% over the Form Order
Quantity most recent six (6) months forecast.

(b)           AMPTECH shall deliver the quantity of
Wafers stipulated in the relevant Purchase Order and delivery shall be
considered timely only if on or before the scheduled delivery date. In the
event delivery is more than seven (7) days after the scheduled delivery date,
WJ shall be entitled to a reduction in the price of the delayed Wafers in the
amount of ***% per week up to a maximum reduction of ***%. WJ agrees to accept
deliveries of *** percent (***%) above the Purchase Order quantities.  WJ also agrees to allow Purchase Orders to be
delivered short provided the deliveries are within *** (***) of the Purchase
Order Quantity.

7.3           Cancellations and Schedule Changes.

(a)           WJ may, in its discretion, cancel,
suspend, or modify any Purchase Order, even if AMPTECH has begun manufacture of
the Wafers so ordered within the stated lead time up to *** (***) percent of
the current quarter’s committed purchase order quantity. Upon cancellation of
the complete or partial Purchase Order for which AMPTECH has begun
manufacturing Wafers, WJ agrees to pay AMPTECH a percentage of the applicable
selling price set forth in the applicable Purchase Order based on the stage of
completion of the applicable Wafer Lot. 
AMPTECH may not terminate any accepted Purchase Order, unless AMPTECH
terminates this Agreement for default by WJ. 
If WJ desires to cancel, suspend, or modify Purchase Orders in excess of
*** (***) percent of the current quarter’s committed purchase order quantity,
WJ and AMPTECH will meet to review the circumstances and determine if a
mutually agreeable solution can be reached.

(b)           AMPTECH shall use commercially
reasonable efforts to accommodate WJ’s requested changes. AMPTECH will notify
WJ at the earliest indication of any interruption in supply of the Wafers or
other Facility difficulty that may affect the availability of  Wafers under this Agreement.

***         CONFIDENTIAL MATERIAL REDACTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

(c)           WJ may, in its discretion, cancel any
Purchase Order if AMPTECH either does not deliver or projects that it will not
deliver Wafers pursuant to such Purchase Order within *** (***) days of its
originally committed delivery date as adjusted for any holds that WJ may have
requested of AMPTECH with respect to the Purchase Order.  WJ will notify AMPTECH in writing of its
decision to cancel a Purchase Order under this Section 7.3(c).

7.4           Wafer Shipment.  AMPTECH shall deliver free on board (FOB) at
their Facility in Milpitas, California.

7.5           Wafer Acceptance Testing.  Acceptance testing of the Wafers delivered to
WJ will be performed within *** (***) days of receipt.  If WJ identifies an issue with the Wafers, WJ
will notify AMPTECH and provide to AMPTECH the incoming inspection data and
other data in its possession related to the wafers.  AMPTECH, will review the information within
*** (***) hours and meet with WJ to mutually address the issue.  AMPTECH shall immediately exercise its
reasonable efforts to develop and implement a corrective action plan for any
errors, including manufacturing errors or defects identified in its
systems.  If the engineering evaluation,
identifies the source of the problem to be wafer fabrication related, AMPTECH
will issue a return material authorization for the return of the material and
credit of the purchase price or, at WJ’s option, may be retained by WJ subject
to an agreed upon credit being issued by AMPTECH.  For such properly rejected Wafers that WJ
returns to AMPTECH for a refund of the purchase price, title and risk of loss
or damage of returns will pass to AMPTECH at WJ’s docks.  Rejected Wafers shall be subject to the Scrap
disposal procedures set forth in Section 3.9 herein.

8.             PRODUCT WARRANTIES AND FAILURES

8.1           Product Warranty. AMPTECH
warrants that, at the time of delivery to WJ, all Wafers will comply with the
Specifications and the Quality and Reliability Standards and be free of liens,
encumbrances, and defects. WJ shall advise AMPTECH in writing of any claims
involving failure to meet the Specifications or Quality and Reliability
Standards.

8.2           Persistent Failure. In the
event repeated field failures occur with respect to Wafers, or a significant
field failure occurs which requires immediate attention, AMPTECH shall take all
commercially reasonable action required to promptly resolve the matter.

8.3           Product Failure. In the event
that any Wafer fails to pass WJ’s inspection, or WJ otherwise determines that
any Wafer fails to meet the Wafer Standards, WJ will give AMPTECH notice of the
defective Wafer and AMPTECH shall use commercially reasonable efforts to
resolve the matter.  WJ shall have no
financial responsibility for defective Wafers.

9.             PROTECTION OF TECHNOLOGY AND
INTELLECTUAL PROPERTY

9.1           Protection of WJ Technology.
AMPTECH will take steps to avoid benefit to WJ’s competitors from WJ Technology
(as defined in the License Agreement), as follows:

(a)           AMPTECH will create a firewall
between (i)  products, processes, and
other activities on behalf of WJ, and (ii) 
all personnel, products, and processes of (1)  competitors of WJ and (2)  other 
product customers of AMPTECH unless AMPTECH is using WJ Technology under
its License Agreement, in which case it will conform to the License Agreement.

(b)           The Parties will cooperate to prevent
the unauthorized distribution, use, or access, or the unauthorized disclosure
of WJ’s Intellectual Property by AMPTECH.

(c)           If a security compromise related to
the WJ Technology is caused by or results primarily from the acts or omissions
of AMPTECH or any of its subsidiaries, vendors, employees, or sublicensees or
their failure to comply with the agreed security procedures, AMPTECH will be
responsible for responding to and containing such security compromise.

***         CONFIDENTIAL MATERIAL REDACTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

9.2           Know-How Preservation. AMPTECH
will not use any Intellectual Property of WJ (including without limitation
Confidential Information), for any purpose inside or outside AMPTECH, except as
permitted by the License Agreement.

10.          INDEMNIFICATION AND INSURANCE

10.1         Intellectual Property
Indemnification by AMPTECH.

(a)           AMPTECH agrees to defend at its
expense any suits brought by a third party against WJ based upon a claim that
the process used by AMPTECH to manufacture Wafers and the AMPTECH Technology
used in such process infringes any Intellectual Property Rights, and to pay
costs, including attorneys fees and expenses, and damages finally awarded in
any such suit against WJ. AMPTECH has no obligations under this Section to the
extent arising from  AMPTECH’s use of the
Process.  WJ will promptly notify AMPTECH
in writing of any claim or suit. AMPTECH will have control of such claim or
suit to defend or settle at its expense so long as settlement does not involve
any admission of liability or payment by WJ. WJ will provide reasonable
assistance for AMPTECH’s defense of such claim or suit.

(b)           If the use and sale of any of the
Wafers  is prohibited by court order as a
result of a suit within the scope of Section 
10.1(a), AMPTECH, at its option and at no expense to WJ, will obtain for
WJ the right to use and sell the Wafers or will substitute an equivalent method
for performing the AMPTECH Services which are acceptable to and qualified by
WJ.

10.2         Intellectual Property
Indemnification by WJ. In addition to and without limiting WJ’s indemnity
obligations in the License Agreement, WJ agrees to defend at its expense any
suit brought against AMPTECH by a third party based upon a claim that the
Wafers  produced by AMPTECH for WJ
infringe any Intellectual Property Rights, if such infringement arises from  AMPTECH’s use of the Process,  WJ Technology, or WJ’s instruction in
connection with the manufacture of the Wafers and to pay costs, including
attorneys fees, and damages finally awarded in such suit against AMPTECH,
provided that WJ is notified within thirty (30) days in writing of the suit and
at WJ’s request and at its expense is given and opportunity to control of said
suit and all requested reasonable assistance for defense of such claim.

10.3         Damage Mitigation. If a third
party notifies either party that the Technology, processes, specifications, or
formula of a Party infringes or violates the rights of such third party, then
the Parties will cooperate to assure that their actions will respect properly
asserted third party Intellectual Property Rights and address such allegations
of infringement or other claims in a reasonable manner.

10.4         SOLE INFRINGEMENT LIABILITY. THE
FOREGOING PROVISIONS STATE THE ENTIRE LIABILITY OF EITHER PARTY TO THE OTHER
WITH RESPECT TO THIRD PARTY INFRINGEMENT CLAIMS OF ANY TYPE BROUGHT AGAINST A
PARTY REGARDING PERFORMANCE OF THIS AGREEMENT. WITHOUT LIMITING THE OBLIGATIONS
OF EITHER PARTY UNDER SUCH FOREGOING PROVISIONS OR THE PROVISIONS OF THE
LICENSE AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL,
INCIDENTAL, OR CONSEQUENTIAL DAMAGES OF ANY NATURE WHATSOEVER (INCLUDING,
WITHOUT LIMITATION, LOST PROFITS) ARISING FROM INFRINGEMENT OR ALLEGED
INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS.

10.5         Insurance.  AMPTECH shall acquire and maintain at its
sole cost and expense (i) statutory workers’ compensation insurance and
employer’s liability insurance, (ii) all risk insurance coverage for physical
loss or damage to Wafers while at the Facility or under its control, and until
title passes to WJ, and to the tangible personal property provided to AMPTECH
in connection with the Process and (iii) product liability, bodily injury,
business interruption, casualty and property damage insurance, in a form
reasonably acceptable to WJ with a reputable insurance company reasonably
acceptable to WJ. The insurance policy shall provide for combined single limit

coverage of not less than
$***, and WJ shall be named as an additional insured and loss payee. AMPTECH
shall submit certificates of such insurance to WJ (which shall include an
agreement by the insurer not to cancel such coverage except upon thirty (30)
days prior written notice to WJ) for its approval. AMPTECH shall maintain such
insurance coverage in effect for WJ’s benefit throughout the term of this
Agreement and for a period of one (1) year from the date of the last delivery
of wafers to WJ hereunder. If AMPTECH fails to furnish such certificates of
insurance or any required insurance is cancelled for any reason, WJ may, at its
option, immediately terminate this Agreement.

11.          CONFIDENTIALITY

11.1         Confidentiality Obligations. The
Parties recognize that the Confidential Information of one another constitutes
valuable confidential and proprietary information. Accordingly, the Parties
agree on behalf of themselves and their respective officers, directors,
employees and agents that they shall hold in confidence all Confidential
Information of the other party (including the existence of this Agreement and
the terms hereof) and not use the same for any purpose other than as set forth
in this Agreement nor disclose the same to any other person except to the
extent that it is necessary for a Party to enforce its rights under this
Agreement or if required by law or any governmental authority at the discretion
of a Party (including, without limitation, the Securities and Exchange
Commission and any stock exchange or quotation system upon which a Party’s
shares or other equity securities may be traded); provided, however, if a Party
shall be required by law to disclose any such Confidential Information to any
other person, such Party shall give prompt written notice thereof to the other
Party and shall minimize such disclosure to the amount required. The Parties
acknowledge that violation of this Section 13.1 could cause the other Party
irreparable harm and as such each Party agrees and acknowledges that remedies
at law for any breach of its obligations under this Section 11.1 are inadequate
and that in addition thereto the other party shall be entitled to seek
equitable relief, including injunction and specific performance, in the event
of any such breach, without the necessity of demonstrating the inadequacy of
monetary damages. Processes, data, and other information provided, created, or
discovered prior to or during the Term relating to the Wafers and/or the Process(es)
or methods for the manufacture of the Wafers whether provided, created, or
discovered solely by WJ or AMPTECH or jointly by the parties shall, for
purposes of this Agreement, be deemed Confidential Information solely owned by
WJ and furnished by WJ to AMPTECH hereunder, and AMPTECH further agrees that
such specific Confidential Information shall be accessible on a “need to know”
basis only to those AMPTECH employees working on the manufacture of the
Wafers.  AMPTECH warrants and represents
to WJ that no Confidential Information of WJ will be disclosed to any director
of AMPTECH who is a commercial competitor of WJ,, the director’s employee,
officer, agent, or any of its affiliates or subsidiaries. The board members of
AMPTECH agree to be bound by the confidentiality provisions of this Agreement.
Any AMPTECH board member who is a competitor of WJ agrees to recuse themselves
from any meeting where Confidential Information is discussed as long as it is
not in conflict with their fiduciary responsibility as a board member.

11.2         Excluded Information. The
obligations of a Party under  Section
11.1 shall not apply to any information which (a) at the time of disclosure, is
generally known to the public, (b) after disclosure, becomes part of the public
knowledge (by publication or otherwise) other than by breach of this Agreement
by the receiving party, (c) the receiving Party can verify by written
documentation was in its possession at the time of disclosure and which was not
obtained, directly or indirectly, from the other Party, (d) the receiving Party
can verify by written documentation results from research and development by
the receiving Party thereof independent of disclosures by the other Party
thereof or (e) the receiving Party can prove was obtained from any person who
had the legal right to disclose such information, provided that such
information was not obtained to the knowledge of the receiving Party thereof by
such person, directly or indirectly, from the other Party thereof on a
confidential basis. Notwithstanding the foregoing, a Party may disclose
Confidential Information of the other Party (a) to its attorneys, accountants,
and other professional advisors under an obligation of confidentiality to the
other Party, (b) to banks or other financial institutions or venture capital
sources for the purpose of raising capital or borrowing money or maintaining
compliance with agreements, arrangements, and understandings relating thereto
under an obligation of confidentiality to the other Party, and (c) to any
person who proposes to purchase or otherwise succeed (by merger, operation of
law or otherwise) to all of a Party’s right, title and interest in, to and
under this Agreement, if such

***         CONFIDENTIAL MATERIAL REDACTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

person is specifically
identified to the other Party in advance and such person agrees in writing to
maintain the confidentiality of such Confidential Information. The Party
disclosing Confidential Information to any third party as permitted by this
Agreement shall also be responsible for any failure of such third party to
maintain the confidentiality of such Confidential Information. The standard of
care required to be observed hereunder shall be not less than the degree of
care which a Party uses to protect its own information of a confidential
nature.

12.          TERM AND TERMINATION

12.1         Term of Agreement. The term of
this Agreement shall be one (1) year from the date of this Agreement unless
earlier terminated pursuant to the provisions of this Agreement (the “Term”). The Term is
renewable annually by both parties and is to negotiated in good faith 180 days
prior to its termination.    If the
agreement is not renewed in writing, any activity between the parties after the
termination date will be conducted on purchase order terms.

12.2         Termination.

(a)           This Agreement may be terminated
immediately by a Party on written notice to the other Party if the other Party
defaults on any of its material obligations or conditions of this Agreement
which remain uncured for thirty (30) 
calendar days, if capable of being cured, after written notice to the
defaulting Party specifying the nature of the default.

(b)           A Party shall  have the right to immediately terminate this
Agreement by giving written notice of termination to the other Party at any
time upon or after: (i)  the filing by
the other Party of a petition in bankruptcy or insolvency; (ii)  any adjudication that the other Party is
bankrupt or insolvent; (iii)  the filing
by the other Party under any law relating to bankruptcy or insolvency;
(iv)  the appointment of a receiver for
all or substantially all of the property of the other Party; (v)  the making by the other Party of any
assignment or attempted assignment for the benefit of creditors; or (vi)  the institution of any proceedings for the
liquidation or winding up of the other Party’s business or for the termination
of its corporate existence.

(c)           This Agreement may, upon sixty (60) days
notice, be terminated by WJ if (i)AMPTECH engages in fraudulent or material
intentional misconduct, (ii) the lease of the Leased Facility is terminated, or
(ii) WJ is otherwise specifically entitled to immediately terminate this
Agreement under any term or provision of this Agreement.

12.3         Effect of Termination.

(a)           If WJ terminates this Agreement, WJ
may, at WJ’s sole discretion, terminate delivery of all undelivered, and
delivered but unaccepted, Wafers. WJ must compensate AMPTECH for all costs and
expenses incurred for work-in-process Wafers.

(b)           In the event of termination or
cancellation of this Agreement for any reason, AMPTECH shall promptly return to
WJ  any Confidential Information, WJ
Technology, and photomasks, equipment, tools, and other property of WJ used to
manufacture the Wafers, immediately cease the use thereof and certify to WJ in
writing that the same are no longer in use, provided, however, in the event of
termination or cancellation of this Agreement for any reason, WJ may require AMPTECH
to continue to honor the terms of this Agreement for up to nine (9),
]additional months to allow WJ and AMPTECH to effect an efficient transition of
the  photomasks, equipment, tools, and
other property to WJ or a third party designated by WJ, provided that if
AMPTECH terminates this Agreement for cause, AMPTECH shall not be obligated to
provide post termination  services unless
WJ cures the default and prepays for each new Purchase Order in advance.

(c)           If WJ terminates this Agreement
pursuant to Section 14.2(ii) (fraud) or Section 14.2(iii)(loss of lease),
AMPTECH shall be liable to WJ for any reasonable covered costs incurred by WJ
in re-procuring the Wafers which shall include all direct costs incurred by WJ
to procure the Wafers  from another supplier,
including all  non-recurring expenses.
AMPTECH shall also be responsible for any indirect costs incurred by WJ.

AMPTECH’s liability under
this Section 14.3 shall be limited to $***. 
WJ must exercise commercially reasonable efforts to  mitigate damages.

12.4         Survival. The provisions of this
Section and Sections  1, 3.7(a) and (d),
4.2, or 9, 10, 11, 13, 14,  and 15.1,
15.5, 15.6, 15.7, 15.11 shall survive any expiration or termination of this
Agreement.

13.          DISPUTE RESOLUTION

13.1         Mediation. WJ and AMPTECH shall
attempt to settle any claim or controversy, except those related to
intellectual property, through consultation and negotiation in good faith and a
spirit of mutual cooperation. If those attempts fail, then the dispute will be
mediated by a mutually acceptable mediator to be chosen by WJ and AMPTECH
within twenty (20) days after written notice by a Party demanding
mediation.  Neither Party may
unreasonably withhold consent to the selection of a mediator, and WJ and
AMPTECH will share the cost of the mediation equally.

13.2         Arbitration. Any dispute, claim
or controversy arising out of or relating to this Agreement or the breach,
termination, enforcement, interpretation or validity thereof, including the
determination of the scope or applicability of this agreement to arbitrate,
that is not resolved through negotiation or mediation within thirty (30) days
of the date of the initial demand by either Party, shall be determined by
arbitration in San Jose, California before one arbitrator. The arbitration
shall be administered by JAMS pursuant to its Streamlined Arbitration Rules and
Procedures. Judgment on the Award may be entered in any court having
jurisdiction. This clause shall not preclude parties from seeking provisional
remedies in aid of arbitration from a court of appropriate jurisdiction.  The arbitrator may, in the Award, allocate
all or part of the costs of the arbitration, including the fees of the
arbitrator and the reasonable attorneys’ fees of the prevailing party.

14.          LIMITATION OF LIABILITY

14.1         DISCLAIMER. EXCEPT AS EXPRESSLY STATED
IN THIS AGREEMENT, NEITHER PARTY MAKES ANY ADDITIONAL WARRANTIES, EXPRESS,
IMPLIED, OR STATUTORY, ARISING FROM COURSE OF DEALING OR USAGE OF TRADE. IN
PARTICULAR, ANY AND ALL WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, AND NON-INFRINGEMENT ARE HEREBY EXPRESSLY DISCLAIMED.

14.2         LIMITATION OF LIABILITY. EXCEPT FOR
BREACH OF OBLIGATIONS RELATING TO FAILURE TO RETURN THE PROCESS OR WJ
TECHNOLOGY TO WJ UNDER THE TERMS OF THIS AGREEMENT, INFRINGEMENT, OR VIOLATION
OF A PARTY’S INTELLECTUAL PROPERTY RIGHTS ON A BREACH OF OBLIGATIONS RELATING
TO CONFIDENTIAL INFORMATION, (1)  IN NO
EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY, CUSTOMERS, OR ANY THIRD
PARTIES FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, CONSEQUENTIAL, OR
SIMILAR DAMAGE OF ANY KIND OR CHARACTER, REGARDLESS OF WHETHER EITHER PARTY HAS
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND (2)  THE AGGREGATE LIABILITY OF A PARTY FOR ALL
CLAIMS HEREUNDER SHALL NOT EXCEED *** DOLLARS ($***).   THIS IS AN ABSOLUTE LIMITATION ON DAMAGES
AND MAY NOT BE  INCREASED BY ANY OTHER
SECTION OF THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO SECTION 14.

15.          MISCELLANEOUS

15.1         Applicable Law. The law of the
state of California  shall govern this
Agreement without regard to choice of law provisions. The Parties agree that
the UN Convention for the International Sale of Goods shall not apply.
Jurisdiction and venue for litigation of any dispute, controversy, or claim
arising out of or in connection with this Agreement will be only in a United
States federal court for the Northern District of California or a California
state

***         CONFIDENTIAL MATERIAL REDACTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

court having subject
matter jurisdiction located in San Jose, California or San Francisco, California.
Each of the Parties hereby expressly submits to the personal jurisdiction of
the foregoing courts located in California, and waives any objection or defense
based on personal jurisdiction or venue that might otherwise be asserted to
proceedings in such courts.

15.2         Assignment. AMPTECH shall not  assign, sublicense, or otherwise transfer
this Agreement or any rights or obligations arising under this Agreement
without the prior written approval of WJ, and AMPTECH shall not delegate or
subcontract its performance of this Agreement to any third party without the
prior written approval of WJ which approval may be granted or withheld in WJ’s
sole and absolute discretion.  WJ may
assign or transfer this Agreement with the prior written consent of AMPTECH,
provided that the assignee or transferee is bound by law or written agreement
to WJ’s obligations under this Agreement.

Notification.
All notices specifically required to be given under the terms of this Agreement
will be in writing and sent to the addresses stated below or to such other
address, which is designated in writing by the Party to receive notice. All
notices will be deemed to have been given when received by the addressee.

As to AMPTECH:

	
  Name:

  	
   

  	
  Ray Milano

  	
   

  	
  James Black

  
	
  Function:

  	
   

  	
  President

  	
   

  	
  Orrick, Herrington & Sutcliffe LLP

  
	
  Tel. no.:

  	
   

  	
  (818) 879-0061

  	
   

  	
  (415) 773-5700

  
	
  Fax no.:

  	
   

  	
  (818) 865-0917

  	
   

  	
  (415) 773-5759

  
	
  Address:

  	
   

  	
  5776-D Lindero Canyon Road, #431,

  	
   

  	
  415 Howard Street, 10th Floor

  
	
   

  	
   

  	
  Westlake Village, California 91362

  	
   

  	
  San Francisco, California 94105

  
	
  E-mail

  	
   

  	
  rmilano@amptechdesign.com

  	
   

  	
  jblack@orrick.com

  

 

Such persons listed above
shall be subject to change at any time by AMPTECH with prior written
notification to WJ.

As to WJ:

	
  Name:

  	
   

  	
  Mark Knoch

  	
   

  	
  Bruce Diamond

  	
   

  	
  Darrell C. Smith

  
	
  Function:

  	
   

  	
  VP of Operations

  	
   

  	
  CEO & President

  	
   

  	
  Counsel

  
	
  Tel. no.:

  	
   

  	
  (408) 577-6229

  	
   

  	
  (408) 577-6222

  	
   

  	
  (813) 229-7600

  
	
  Fax no.:

  	
   

  	
  (408) 577-6229

  	
   

  	
  (408) 577-6229

  	
   

  	
  (813) 229-1660

  
	
  Address:

  	
   

  	
  401 River Oaks Parkway

  	
   

  	
  401 River Oaks Parkway

  	
   

  	
  101 East Kennedy Blvd, Suite 2800

  
	
   

  	
   

  	
  San Jose, CA 95134

  	
   

  	
  San Jose, CA 95134

  	
   

  	
  Tampa, FL 33602

  
	
  E-mail

  	
   

  	
  Mark.knoch@wj.com

  	
   

  	
  Bruce.diamond@wj.com

  	
   

  	
  dsmith@slk-law.com

  

 

15.4         Entire Agreement/Superseded
Agreements. This Agreement, which includes the appendixes and other
exhibits and attachments hereto, supersedes all prior discussions and writings
and constitutes the entire and only contract between the Parties relating to
the activities to be performed hereunder.

15.5         No Modification. This Agreement
may not be changed, altered, or amended except in writing and signed by duly
authorized representatives of all of the Parties

15.6         Environmental Matters. AMPTECH
will indemnify and hold WJ harmless from and against any liability, claim,
damage, injury, expense, suit, or cause of action, including, but not limited
to, reasonable attorneys fees, arising from or caused by any toxic or hazardous
substances or chemicals, as those terms are defined by applicable environmental
health or safety laws or regulations, which are used in performance of this
Agreement by AMPTECH, present in Scrap disposed of or destroyed by AMPTECH, or
present on any of the Facilities in or during AMPTECH’s performance of this
Agreement, except to the extent present at the time that AMPTECH obtained
possession from WJ. AMPTECH will maintain compliance of the Facility with all
applicable laws and 

have all necessary
permits, operating licenses, or authorizations necessary to operate its
Facilities under applicable environmental safety or health laws or
regulations.  WJ is solely responsible
for environment compliance on its facilities.

15.7         Waiver. The failure of any Party to
enforce, at any time, or for any period of time, any provision of this
Agreement, to exercise any election or option provided herein, or to require,
at any time, performance of any of the provisions hereof, will not be construed
to be a waiver of such provision, or in any way affect the validity of this
Agreement, or any part thereof, or the right of any Party thereafter to enforce
each and every such provision.

15.8         Compliance with Laws. AMPTECH
agrees to comply with all applicable and reasonable local, state, and federal
laws and executive orders and regulations and agrees to defend, indemnify, and
hold WJ harmless against any loss, cost, damage, expense (including attorney’s
fees), or liability by reason of AMPTECH’s violation.

15.9         Independent Contractor. It is
agreed that AMPTECH is an independent contractor for the performance of
services under this Agreement, and that for accomplishment of the desired
result WJ is to have no control over the methods and means of accomplishment
thereof, except as specifically set forth in this Agreement. There is no
relationship of agency, partnership, joint venture, employment, or franchise
between the Parties.

15.10       Export Control and Governmental
Approval.

(a)           The Parties acknowledge that each
must comply with all applicable rules and laws in the performance of their
respective duties and obligations, including, but not limited to, those
relating to restrictions on export and to approval of agreements. AMPTECH will
be responsible for obtaining and maintaining all approvals and licenses,
including export licenses, permits, and governmental authorizations from the
appropriate governmental authorities as may be required, to enable such AMPTECH
to fulfill its obligations under this Agreement.

(b)           Each Party agrees that, unless prior
written authorization is obtained from the United States Bureau of Industry and
Security, it will not export, re-export, or transship, directly or indirectly,
any products or technical information that would be in contravention of the
Export Administration Regulations then in effect as published by the United
States Department of Commerce.

15.11       Non-Solicitation of Employees.   Except as otherwise provided in the Asset
Purchase Agreement, during the term of this Agreement, and for a period of six
(6) months following expiration or termination, neither WJ nor AMPTECH shall
solicit any employee of the other who is or was employed by any organizational
unit of the other Party involved with the performance of this Agreement for
employment, either directly through any of its employees, or indirectly through
any agent or third party such as an recruiting agency or headhunter.

15.12       Force Majeure. Notwithstanding the
insurance requirements under Section 12.6 of this Agreement, neither Party
shall be liable to pay damages during the Term for any delay or failure in
performance, provided such delay or non-performance is due to circumstances
outside its reasonable control, including, but not limited to, decrees or
restraints of government, acts of God or nature, strikes or other labor
disturbances, war, riot, sabotage, fire, earthquake, flooding, power failures
or any other cause which cannot reasonably be controlled by such Party (a “Force Majeure Event”). However, the
aforesaid shall apply with the restriction that the Party not claiming the
Force Majeure Event shall be entitled to terminate this Agreement in writing if
the delay or non-performance of the other Party as a result of the Force
Majeure Event should last for more than 3 months.  For a Party to claim a Force Majeure Event
hereunder, it must notify the other Party within five (5) days of commencement
of the Force Majeure Event specifying the nature of the Force Majeure Event and
the anticipated length of the Force Majeure Event.  The Party claiming a Force Majeure Event
shall use commercially reasonable efforts to investigate, eliminate, avoid or
prevent the Force Majeure Event so as to continue performing its obligations
under this Agreement.  Under no
circumstances shall a Force Majeure event delay WJ’s obligation to pay AMPTECH.

15.13       Section Titles. Section titles as
to the subject matter of particular sections herein are for convenience only
and are in no way to be construed as part of this Agreement or as a limitation
of the scope of the particular Sections to which they refer.

15.14       Counterparts and Facsimiles.  This Agreement may be executed in several
counterparts and by facsimile, each of which shall be deemed to be an original,
but all of which shall constitute one and the same instrument.

IN WITNESS
WHEREOF, the Parties have caused this Agreement to be signed by duly authorized
representations on the date first set forth above.

	
  AMPTECH, INC.

  	
  WJ COMMUNICATIONS, INC.

  	 

	
   

  	
   

  	 

	
  BY:

  	
   

  	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
   

  	
   

  	
  TITLE:

  	
   

  	
   

  	 

										

APPENDIXES

APPENDIX
A- WJ PROCESSES TO BE PROVIDED TO AMPTECH

APPENDIX B- LIST OF PRODUCTS (WAFERS)

APPENDIX C- VOLUMES AND PRICES FOR WAFERS

APPENDIX D- PROCESS RESPONSIBILITIES

Appendix
A

WJ
Processes to be Provided to AMPTECH

The table below contains the valid WJ Process
Specifications. Each modification or change of a parameter leads to a new
release of the Process Specification. 
This change must be performed in written form and signed by AMPTECH and
WJ, respectively.

	
  Description

  	
   

  	
  Process

  	
   

  
	
  MESFET
  ***

  	
   

  	
  X

  	
   

  
	
  MESFET
  ***

  	
   

  	
  X

  	
   

  
	
  HFET
  ***

  	
   

  	
  X

  	
   

  
	
  HBT ***

  	
   

  	
  X

  	
   

  
	
  HBT ***

  	
   

  	
  X

  	
   

  

 

PCM
Measurement Conditions, Pass/Fail-Selection

AMPTECH will perform a
PCM test at all lots, each wafer, performed on the process control monitor
structure (PCM) located in the scribe line or special test inserts.

A wafer will be
classified as having passed if each individual pass/fail parameter listed in
the process specification passes on ***% of the mutually agreed upon number of
test sites. The pass/fail limits for electrical tests performed on the PCM for
each wafer are listed in the relevant process documentation.

If a Wafer fails
the acceptance criteria, the Wafer may not be shipped to WJ unless WJ requests
that it be shipped.

WJ and AMPTECH shall
mutually agree on all applicable PCM tests within *** (***) days following the
Effective Date.  If such agreement is not
reached within thirty days following the Effective Date, either party may
request mediation and arbitration of the issue, in which case each party shall
submit its proposed tests to mediation and, if necessary, arbitration as set
forth in Section 13.  If the proposals
are submitted to arbitration, the arbitrator shall be instructed to select one
of the two proposals.

***         CONFIDENTIAL MATERIAL REDACTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

Appendix B

List
of Products (Wafers)

	
  Products

  	
   

  	
  Process

  	
   

  	
  Die X(um)

  	
   

  	
  Die Y(um)

  	
   

  	
  Area(mm^2)

  	
   

  	
  Target Yield

  	
   

  
	
  ***

  	
   

  	
  MESFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  MESFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  MESFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  MESFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  MESFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  MESFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  MESFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  MESFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  MESFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  MESFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  MESFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HFET

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  Passive

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HBT
  5V

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HBT
  5V

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HBT
  5V

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HBT
  5V

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HBT
  5V

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HBT
  5V

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HBT
  5V

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HBT
  5V

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HBT
  5V

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HBT
  5V

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  HBT 5V

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

***         CONFIDENTIAL MATERIAL REDACTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

Appendix C

Volumes
and Prices for Wafers

All prices under
this agreement are to be quoted, billed, and paid for in U.S. Dollars. USD ($).

Prices
listed below are quoted per Wafer and include the raw Wafer cost and all other
costs, but not IC probing.

	
  Price/Wafer by Process Technology

  
	
  MESFET

  	
   

  	
  HFET

  	
   

  	
  5V HBT

  	
   

  	
  28V HBT

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  

 

WJ will during the initial term of this Agreement, provide AMPTECH with a
purchase order for a minimum of *** per week beginning with the first week that
AMPTECH is able to consistently deliver wafers. 
This commitment will be reduced by any cancellations under section 7.3.

Wafer probing and or scribe and break prices shall be negotiated in good
faith and agreed by the AMPTECH and WJ within *** days following the Effective
Date.  If agreement is not reached on
such pricing within *** (***) days following the Effective Date, the parties
shall submit pricing determination to mediation and, if necessary,  arbitration as set forth in Section 13. The
mediator and arbitrators shall be instructed to determine fair market pricing.

AMPTECH and WJ shall confer and prepare a mutually agreed plan (including
pricing) for AMPTECH to provide WJ with metalized processing of wafers until
such time as WJ can fully qualify an alternative source.  The volume of metalized wafers on a weekly
basis shall not exceed a volume that would constrain AMPTECH’s production for
other requirements.  If agreement is not
reached on such plan and pricing within *** (***) days following the Effective
Date, the parties shall submit determination of a plan and proper pricing to
mediation and, if necessary,  arbitration
as set forth in Section 13.  The mediator
and arbitrators shall be instructed to determine fair market pricing.

Lead-Times

Process lead-times from
AMPTECH will be established after sixty days of fab operation at   .  
days/level.  Device mix releases will be
started in the week following receipt.

Hot lots (if lots in-line
exceed ***) have a *** cost factor. 
Cycle time on hot lots is (—   .    
days/level to be established after sixty days of fab operation)

Hand-Carry lots require
written acceptance of the wafer fab, and have a *** cost factor.  Cycle time on hand-carry lots is (—   .    days/level to be established after sixty days
of fab operation)

Priority lots are
subject to acceptance by AMPTECH according to their internal limits.

***         CONFIDENTIAL MATERIAL REDACTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

Appendix
D

WJ is responsible to
provide all documentation and engineering support to enable AMPTECH to use WJ’s
Processes in its manufacture of the Wafers.

WJ is responsible for
reliability and qualification test costs for all WJ’s products.

  Any future photomask replacement due to
damage caused by AMPTECH’s negligence is the responsibility of AMPTECH.  AmpTech and WJ shall review the condition of
the photomasks within thirty (30) days following the Effective Date, and shall
equitably determine the allocation of costs for the replacement of masks due to
normal wear.  If agreement is not reached
on such allocation within thirty (30) days following the Effective Date, the
parties shall submit the cost allocation determination to mediation and, if
necessary,  arbitration as set forth in
Section 13.

AMPTECH is responsible
for all internal process development costs.

AMPTECH is responsible
for processing Wafers and supporting tools to 
manufacture of the Wafers.

 AMPTECH is responsible for tool installation,
government permits, and Facility costs.

AMPTECH is responsible
for tools ongoing maintenance and operating costs.

AMPTECH is responsible
for any tools needed strictly for capacity expansion associated with the
manufacture of the Wafers.

By the signing of this
agreement. AMPTECH shall be responsible for the costs of preparing and filing
any  UCC statements required by WJ.

Appendix
E

1.1          Appendix
E— Qualification Requirements

Process
Qualification requirements:  each process technology has specific failure
modes unique to that technology and/or methodology.  Other failure modes are generic to materials
& structures common in all semiconductor processes.   Process Qualification requires evaluation of
the following:

Failure modes specific to the individual technology

Three-temperature DC life test

RF operational endurance test

Passive element tests

Mechanical integrity tests

Documents containing very
detailed requirements for MESFET, HFET, and 5V HBT processes have been
previously provided to AMPTECH.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]