Document:

Exhibit 10.43

 

WAFER
SUPPLY AND SERVICES AGREEMENT

 

AMENDMENT
ONE

 

among:

 

JAZZ SEMICONDUCTOR

 

a Delaware limited liability
company

 

and

 

SKYWORKS SOLUTIONS, INC.

 

a Delaware corporation

 

 

Dated as of May 2, 2003

 

 

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

 

 

AMENDMENT
ONE TO THE WAFER SUPPLY AND SERVICES AGREEMENT

 

THIS AMENDMENT ONE TO
THE SKYWORKS WAFER SUPPLY AND SERVICES AGREEMENT (the “Amendment One”) is entered into as of May 2,
2003 (the “Amendment One
Effective Date”) by and between JAZZ SEMICONDUCTOR,
a Delaware limited liability company (“Jazz” or “Company”), and
SKYWORKS SOLUTIONS, INC., a Delaware corporation
(“Skyworks”).

 

RECITALS

 

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

 

B.                                    A
WAFER SUPPLY AND SERVICES AGREEMENT was entered into as of March 30, 2002, by and between CONEXANT
SYSTEMS, INC.,
a Delaware corporation (“Conexant”), and SPECIALTYSEMI, INC., a Delaware corporation currently
known as Jazz Semiconductor (the “CNXT Supply Agreement”).

 

C.                                    Skyworks was formed in June,
2002
through the completion of the merger between Alpha Industries, Inc. and
Conexant’s wireless communications business and Skyworks, under a separate
agreement with Conexant dated June 25, 2002, agreed to assume a portion of
the volume commitment set forth in the CNXT Supply Agreement and undertook
other related obligations (“SWKS CNXT Supply Agreement”). Jazz acknowledges the
Skyworks wafer purchases to date have been counted toward Conexant’s volume
commitment as set forth in Section 2.1(f) of the CNXT Supply Agreement.
Section 2.1(f) of the CNXT Supply Agreement is attached for reference
purposes as Exhibit H.

 

D.                                    The
CNXT Supply Agreement contains Section 2.1 (f)  (iii), stating each Conexant Spin-off (a “Participating Spin-off”)
may enter into a separate agreement with Jazz containing all of the terms and conditions of
the CNXT Supply Agreement. Skyworks acknowledges that the SWKS CNXT Supply
Agreement specifically excludes Section 2.1(f) (Purchase for Certain
Entities) and 6.2 (Wafer Credits). Pursuant to Section 2.1(f)(iii) of the CNXT Supply Agreement,
Skyworks and Company entered into THE
SKYWORKS WAFER SUPPLY AND SERVICES AGREEMENT (the “SWKS Supply Agreement”) as of May 2, 2003.

 

E.                                      Skyworks
and Jazz wish to modify certain terms contained in the SWKS Supply Agreement
regarding (1) the Jazz Wafer
Capacity Commitment;  (2) the
[. . . *** . . .]
for the manufacturing of the Skyworks silicon demand;  (3) second sourcing for the
manufacturing of Skyworks
silicon demand; and (4) Contract Pricing. Skyworks desires a longer term and more
definitive additional capacity assurances, and Jazz desires a more definitive
commitment regarding the manufacturing requirement for Skyworks’ product demand.

 

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

 

1

 

AGREEMENT

 

1.               Definitions. Capitalized terms not
expressly defined elsewhere in this Amendment One have meanings as set forth in this Section 1,
or if not listed in this Section 1
then as set forth in the SWKS Supply
Agreement. All references to “Section”
shall be to the sections of this Amendment One, unless expressly stated
otherwise.

 

1.1.                              “China Fab” means either i) the ASMC
fabrication facility that Jazz establishes in China or ii) the SMIC fabrication
facility that Jazz establishes in China.

 

1.2.                              “Customer Qualification Requirement” means a
requirement imposed on Skyworks by a Skyworks’ customer. By way of example, the Customer
Qualification Requirement may include specific requirements for
fabrication, such as the location and ownership of a second source fabrication
facility.

 

1.3.                              “Initial Standard Yield” means, for each
semiconductor part in production on the Amendment One Effective Date (excluding those
identified in Exhibit K),
the standard yield set forth in Exhibit A. For a new semiconductor part having
a first production after the Amendment
One Effective Date,
the Initial Standard Yield shall be established as the numerical
average of the Probe Yield from the first [. . . *** . . .] production lots, provided the [. . . *** . . .]
production lots have a
standard deviation in Probe Yield of [. . . *** . . .] or less.

 

1.4.                              “Jazz Fabs” mean the (1) Newport Beach
Fab facility located in Newport Beach; and (2) the China Fabs.

 

1.5.                              “Move” means the completion of an individual
stage in the process of fabricating a Wafer at any Jazz Fab as described in SWKS Supply Agreement Exhibit B,
Schedule 2.2

 

1.6.                              “Party” means either Skyworks or
Jazz,
individually, as the context
requires, and Parties means Skyworks and Jazz, collectively.

 

1.7.                              “Process Mix” means the particular
combination of process technologies featured within an offered process classification
available at the Jazz Fabs.

 

1.8.                              “Probe Yield” is calculated for each wafer as the number of
good dies electrically tested and passed at probe versus the total number of die expected to be
capable die on the tested wafer.

 

1.9.                              “Part” or “Semiconductor
Part” means a Skyworks semiconductor device with a unique part number
based on the traditional assignments of part numbers by Skyworks to date.

 

1.10.                     “Reset Standard Yield” means the yield value
determined in a yield update as set forth in Section 11.3.

 

1.11.                        “Standard Yield” means the Initial Standard
Yield or, if the yield for a semiconductor part has been reset pursuant to
a yield update, then the Standard Yield means the Reset Standard Yield.

 

1.12.                        “Uncommitted Available
Capacity” means, at any given time, the capacity controlled
by Jazz that is uncommitted after excluding all capacity necessary to fulfill
Jazz’s commitments under this Wafer Supply Agreement, the CNXT Supply Agreement
(excluding the Skyworks Purchase Obligation), and Jazz contractual obligations
to other third parties under supply agreements or purchase orders previously
accepted by Jazz.

 

1.13.                        “Wafer” means a semiconductor wafer to be processed,
prepared, and tested at a Jazz Fab, and includes a variety of individual semiconductor parts
including Production Wafers, Pizza Mask Wafers, and Risk Materials.

 

2

 

1.14.                        “WSPD” means Wafer Starts Per Day, and is a
number of Wafers that may commence processing in a single day at the Jazz
Fabs.

 

1.15.                        “Standard Delivery Schedule” means the
number of calendar days to manufacture a part using the cycle times set
forth in Exhibit I, and starting from the Jazz confirmed start dates.

 

2.              Requirement
and Forecast for [. . . *** . . .]

 

2.1.                              For
the first 90 days following the Amendment One Effective Date Skyworks shall use
its commercially best efforts to place orders for [. . . *** . . .]
in accordance with the forecast by Skyworks as set forth in exhibit L.

 

2.2.                              Within
thirty (30) days after the Amendment One Effective Date and [. . . *** . . .]
prior to the start of each [. . . *** . . .]
thereafter, Jazz shall provide a [. . . *** . . .]
rolling report for the anticipated need for [. . . *** . . .]
WSPD to load the Newport Beach Fab (“the Anticipated
Load”). After the time period of Section 2.1, Skyworks shall place orders
for [. . . *** . . .]
Wafers up to the Anticipated Load, but not to exceed Skywork’s requirements for
[. . . *** . . .]
parts qualified at the Newport Beach Fab. Skyworks
shall use diligent commercially best efforts to qualify existing and new [. . . *** . . .]
parts at the Newport Beach Fab. If, in any month after
[. . . *** . . .],
Jazz fails to achieve [. . . *** . . .] days
per layer cycle time on at least [. . . *** . . .]% or
better of [. . . *** . . .]
lots, then Skyworks shall be relieved of its
obligation to place orders for any [. . . *** . . .] parts
under this Section 2.2. Skyworks shall resume its purchases
under this Section when the cycle time has improved to [. . . *** . . .]
days per layer cycle time on at least [. . . *** . . .]%
of [. . . *** . . .]
lots or better.

 

2.3.                              Forecast

 

2.3.1.                     Initial
Forecast. Exhibit L is the initial forecast for Skyworks’
projected total WSPD, which will be updated according to the procedure set
forth in Section 2.3.2.

 

2.3.2.                     Rolling Forecast. Skyworks shall provide to
Jazz a [. . . *** . . .]
rolling forecast by [. . . *** . . .].
The rolling forecast will provide an estimate of Skyworks’ projected total WSPD
requirements for each [. . . *** . . .],
and will allocate the total WSPD requirements according to fab-only Wafers and
fab/probe Wafers. By way of convention, the forecast months will be referred to
as follows in a [. . . *** . . .]
rolling forecast:

 

[. . . *** . . .]

 

2.4.                              Volume Commitment. Skyworks hereby makes a
volume commitment to the WSPD in each [. . . *** . . .]
rolling forecast according to the following schedule (the
“Skyworks Wafer Volume Commitment”).
Skyworks acknowledges and affirms the Skyworks Wafer Volume Commitment for any [. . . *** . . .]
shall not be less than the “take or pay” purchase obligations set forth in Section 2.1 of
the SWKS Supply
Agreement (the “Skyworks
Purchase Obligation”), provided Jazz makes a capacity
commitment sufficient to meet the “take or pay” Skyworks Purchase Obligation.

 

2.4.1.                     [. . . *** . . .]
of the forecast WSPD at the forecasted Process Mix, but in no event less
than the Skyworks Purchase Obligation.

 

3

 

2.4.2.                     [. . . *** . . .]
of the forecast WSPD,
but in no event less than the Skyworks Purchase Obligation, but Skyworks
reserves the right to adjust the Process Mix within the available capacity of
each process in the Jazz Fabs.

 

2.4.3.                     [. . . *** . . .]
of the forecast WSPD,
but in no event less than 100% of the Skyworks Purchase Obligation, but
Skyworks reserves the right to adjust the Process Mix within the available
capacity of each process in the Jazz Fabs.

 

2.4.4.                     [. . . *** . . .]
of the forecast WSPD,
but in no event less than 100% of the Skyworks Purchase Obligation, but
Skyworks reserves the right to adjust the Process Mix within the available
capacity of each process in the Jazz Fabs.

 

2.4.5.                     [. . . *** . . .]
But for the Skyworks Purchase Obligation, Skyworks makes no commitment
to any WSPD or particular Process Mix for [. . . *** . . .].

 

2.5.                              Credit
Against CNXT Supply Agreement. Jazz shall continue to
expressly credit Conexant for Conexant’s volume commitment as set forth in Section 2.1(f) of
the CNXT Supply Agreement for all purchases of Wafers by Skyworks (the “Contract
Credit”) under the SWKS Supply Agreement and any amendments thereto including
this Amendment One. However, upon a showing by Skyworks that Conexant is not
applying the Contract Credit to the SWKS CNXT Supply Agreement, Jazz will, upon
Skywork’s request, provide to Conexant evidence of Skyworks qualifying
purchases. Jazz agrees to credit Skyworks for payments Jazz receives from
Skyworks, and further agrees to credit Skyworks that portion of Conexant’s
volume commitment that Conexant claims as originating from Skyworks; and Jazz
agrees not to accept a double payment for that portion.

 

2.6.                              Cycle
Time Increase.

 

2.6.1.                     Exhibit I sets forth target
cycle times for parts and may be updated by written mutual consent of the
parties. For any increase in a target cycle time that may increase the
Standard Delivery Schedule for a part by more than [. . . *** . . .]
days, Jazz shall make commercially reasonable efforts to provide a minimum of
[. . . *** . . .] advance written notice to Skyworks, and Skyworks will use
commercially reasonable efforts to update Exhibit I to reflect the
increase in the cycle time and to accommodate the increase into its Wafer
forecast. If the Purchase Order process reflects a decrease in cycle time for
any part other than for expedited or priority lots, then the Parties agree
to cooperate to update Exhibit I to reflect the decreased cycle time. The
updated cycle times in Exhibit I will become the new target cycle times.

 

2.6.2.                     Jazz shall make commercially
reasonable efforts to maintain a cycle time for each part that is no more
than [. . . *** . . .]% over the target cycle time for
that part as set forth in Exhibit I, as updated.

 

2.6.3.                     If any part has
a delay in delivery of more than [. . . *** . . .]
days in the Standard
Delivery Schedule for that part, then Skyworks may reduce its Wafer
Volume Commitment by a number of Wafers equal to the percentage increase in
cycle time as compared to the Cycle Times set forth in Exhibit I
multiplied by the WSPD of the part having the increase, and Skyworks may move
such Wafers to a non-Jazz fab facility; provided, however, that any Wafer
reduction may be used to reduce the Wafer Volume Commitment only for (i) the
part(s) experiencing the cycle time increase or (ii) parts having a
similar mix in technology as the part(s) having the cycle time increase, or if
neither (i) or (ii) is reasonably available to Skyworks to move
taking into account limitations Skyworks may have due to customer
qualification issues, then (iii) any part(s) by mutual agreement taking
into account Skyworks customer qualification requirements. Notwithstanding the
foregoing, (i) 

 

4

 

Skyworks may not
reduce its Wafer Volume Commitment if such part delay was caused by
changes requested by Skyworks; and ii) Skyworks, for a period of [. . . *** . .
..] days, may not reduce its Wafer Volume Commitment for a part under
this section if Skyworks failed to maintain a loading variance equal to or
less than [. . . *** . . .]% week to week. Skyworks will resume the wafers that
were removed at the start of the next month after which the bottleneck has been
cleared and cycle times have returned to the Exhibit I cycle times.

 

3.               Capacity

 

3.1.                              Initial
Capacity Commitment. Exhibit M sets forth the initial
capacity commitment by Jazz, which will be updated according to the procedure
set forth in Section 3.2.

 

3.2.                              Wafer Capacity. Within [. . . *** . . .]
of receipt of the Skyworks rolling forecast in accordance with Section 2.3.2, Jazz, for each [. . . *** . . .]
in the then current rolling forecast, shall provide in writing a rolling
capacity commitment identifying the Jazz Fab at which each product will be
manufactured (the “Jazz Wafer Capacity Commitment”).
Jazz shall use commercially
reasonable efforts to provide a Jazz Wafer Capacity Commitment sufficient to
meet the Skyworks rolling forecast for each [. . . *** . . .]. The capacity
commitment by Jazz shall not be less than the commitment provided the [. . . *** . . .],
unless Skyworks’ forecast decreases for the commitment period, and then the
Jazz Wafer Capacity Commitment may only decrease to the decreased amount. Should
Skyworks increase a forecast from the previous [. . . *** . . .], and Jazz confirms
the higher forecast amount, the Jazz Wafer Capacity Commitment will then be set
at the confirmed higher forecast amount. If Jazz is unable to provide Skyworks with a
capacity commitment sufficient to meet the Skyworks forecast, then Skyworks may reduce
its forecast by the amount of the capacity shortfall and move such Wafers to a
non-Jazz fab facility; provided, however, that any Wafer reduction may be
used to reduce the forecast only for (i) part(s) for which Jazz failed to
meet Skyworks’ forecast or (ii)  part(s) having a similar mix in
technology as the part(s) for which Jazz failed to meet Skywork’s forecast, or
if neither (i) or (ii) is reasonably available to Skyworks to move
taking into account limitations Skyworks may have due to customer
qualification issues, then (iii) any part(s) by mutual agreement taking
into account Skyworks customer qualification requirements.

 

3.3.                              The Jazz Wafer Capacity Commitment shall be in
addition to any shortfall capacity, if any, that Jazz provides to meet a Wafer
shortfall. By way of example, a Wafer shortfall may be due to a failure to
meet the yield guarantee
of Section 11.1, a failure to meet the Jazz Wafer Capacity Commitment in a prior [. . . *** . . .],
a failure to meet quality requirements, or a process interruption and/or
failure.

 

3.4.                              Process Changes. Any process change must be
in accordance with the Process
Change Notification (PCN) procedures set forth in Exhibit G.

 

3.5.                              Probe Capacity. Jazz shall offer to Skyworks probe capacity
that has been qualified by Skyworks. For purposes of this Amendment, qualified
probe capacity shall mean that probe capacity at a particular probe location
that has passed Skyworks quality processes, and for which Skyworks has provided
Jazz a notification of such qualification. Jazz shall allocate
probe capacity at the Jazz Newport Beach Facility in proportion to the Skyworks
wafer loading at the Jazz Newport
Beach Facility as compared to
the total Capacity at the Jazz
Newport Beach Facility. If additional probe capacity is needed in
excess of that available at the Jazz Newport Beach Facility, when considering
wafer loading, then Jazz shall notify Skyworks of the quantity

 

5

 

of Wafers that need the additional probe service, and
Skyworks may either (1) provide fab only purchase orders above the Skyworks Wafer Volume
Commitment and assume all costs, and logistical and engineering
responsibilities related to the probe of such wafers; or (2) Jazz shall
arrange for, and Skyworks shall bear the [. . . *** . . .] costs associated, with probe service
using a probe service provider pre-approved by Skyworks in writing. Within sixty (60) days of receiving
the notice of additional probe service needs, Skyworks may notify Jazz
that the quantity of Wafers that need additional probe services will be
accepted as fab-only Wafers.
Jazz shall further provide Skyworks with sixty (60) days advance notification for new products
being transferred to a new probe location and thirty (30) days advance notification for existing
products with established test programs qualified at Jazz. No more than one
product per month, and not to exceed two per quarter,  will be transferred to a second probe
location unless mutually agreed upon in writing or electronic mail. Skyworks shall provide
thirty (30) day advance written
notice of change in any wafer probe time/test program of more than ten percent (10%). If Skyworks gives less
than thirty (30) days
notice for an increase in probe time/test program of more than 10%, at Skyworks
request, Jazz will use commercially reasonable efforts to reallocate test
resources in a way to accommodate Skyworks test needs, provided that (i) Skyworks’ products stay within the Probe Test Capacity
allocated to Skyworks and (ii) the
Skyworks Wafer
Volume Commitment shall not be reduced due to the reallocation and (iii) the
invoicing by Jazz and payment by Skyworks for delayed lots due to the
reallocation shall be in accordance with the original shipping schedule.

 

3.6.                              Priority of Commitment. The Jazz Wafer Capacity Commitment
shall be made with consideration of the cycle times required by Skyworks, as
set forth in Exhibit I. Under no circumstance shall Jazz knowingly commit
to deliver to Skyworks an overall capacity, when considering all Jazz
customers, in excess of its actual Capacity for any [. . . *** . . .].

 

3.7.                              Provided
Skyworks has cooperated with the [. . . *** . . .] Qualification
requirements as described in Exhibit E, Skyworks may Submit purchase
orders to Jazz and Jazz shall accept such Purchase Orders, at the price and
upon the terms and conditions contain herein, up to the Uncommitted Available
Capacity at the time of receipt of such Purchase Order.

 

4.               [. . . *** . . .]

 

4.1.                              Currently Manufactured Parts. Only for the [. . . *** . . .]
following the Amendment One Effective date, Jazz’s [. . . *** . . .]
for the manufacturing of the parts identified in Exhibit J -1,
shall not be subject to the conditions and or limitations of section 4.2.

 

4.2.                              Volume. Subject to the limitations of this
paragraph, Skyworks will [. . . *** . . .]
on a part-by-part basis. [. . . *** . . .]
will not apply to (i) the
semiconductor parts identified on Exhibit J –2, (ii) any .18um
or smaller CMOS - technology (iii) provided
Skyworks is fully cooperating, as set forth in Exhibit E, with the
qualification of [. . . *** . . .], that portion of Wafers moved by
Skyworks to a non-Jazz fab pursuant to Section 3.2, and (iv) any
part, or derivative of that part, for which Jazz had a [. . . *** . . .]
and [. . . *** . . .]
was released. Jazz’s
[. . . *** . . .]
shall be effective provided Jazz is competitive in price, technology,
time of delivery, delivery performance, meeting Customer Qualification
Requirement, cycle times, quality, and comparable yield performance for similar
volumes of such parts. Absent a Skyworks Customer Qualification Requirement,
Jazz’s [. . . *** . . .]
for the semiconductor parts identified on Exhibit J-3 shall be
effective provided Jazz is competitive in price, technology, time of delivery,
delivery performance, cycle times, quality, and comparable yield performance
for similar volumes of such parts.

 

6

 

4.2.1.                     Jazz
may periodically, or upon Skyworks request, not to exceed once per
quarter, provide to Skyworks a projection of available capacity. The projection
shall include pricing for the available process technologies. The projection
shall also provide a projection of probe capacity and probe pricing.

 

4.2.2.                     At
the time Skyworks firmly identifies a fabrication need for a semiconductor part subject
to the [. . . *** . . .]
of Section 4.2, Skyworks shall give [. . . *** . . .] to Jazz. Skyworks shall notify Jazz of the
fabrication need using a request for quotation process, and Jazz shall respond
in the time allotted in the request, and in no event less than [. . . *** . . .]. Skyworks shall
notify Jazz within [. . . *** . . .]
of determining that any fabrication requirement subject to the [. . . *** . . .]
may be awarded to any foundry other than a Jazz facility and
identify the basis for such decision [. . . *** . . .]  The [. . . *** . . .]
notice shall be made by Skyworks in good faith, and be based on [. . . *** . . .]
for similar volumes of such parts. Both Parties agree to operate in good
faith, to make
commercially reasonable efforts to resolve issues in a timely manner. The [. . . *** . . .]
notice to Jazz shall
include non-confidential information regarding the specific reason(s) for the [. . . *** . . .], which may include
information regarding [. . . *** . . .].
Within three (3) business days of receiving such [. . . *** . . .] notice, Jazz shall
either (a) [. . . *** . . .], or (b) provide
Skyworks with a revised Jazz proposal to [. . . *** . . .]. If after the
submission of the revised Jazz proposal, Skyworks, in good faith,
determines that the revised Jazz proposal is not [. . . *** . . .], Skyworks shall
notify Jazz thereof (“Second Notice”). If Jazz, in good faith, believes the revised Jazz proposal to be [.
.. . *** . . .], then Jazz may request each Party’s CEO (or, if
unavailable, his or her designated member of senior management)
meet within ten (10) business
days of the Second Notice to review the reasons for such release
or termination and to allow for a final modification of the Jazz proposal. If, after the CEO meeting or upon
expiration of the (10) ten business day meeting period (if no meeting has
been requested), Skyworks, in its sole but good faith discretion, finds that
Jazz is still not [. . . *** . . .] as set forth in Section 4.2 then [. .
.. *** . . .] for that part. Skyworks acknowledges that the [. . . *** . . .] for the manufacture of the part shall
be made only after [. . . *** . . .] under the terms of this Section.

 

4.2.3.                     If
Skyworks selects Jazz for the new Wafer fabrication need, then Skyworks shall
add the new part to rolling forecast and provide for a wafer volume commitment
as set forth in Section 2.3.2, and Jazz shall provide a wafer capacity commitment
for such part as set forth in Section 3.

 

5.               Pricing.

 

5.1.                              [. . . *** . . .]
Pricing.
Provided Skyworks places orders in accordance with Sections 2.1 and 2.2, then
the [. . . *** . . .]
pricing shall be determined as set forth in Exhibit B.

 

5.2.                              Existing Product Pricing(other
than [. . . *** . . .]):

 

5.2.1.                     Basic Wafer Pricing for Existing Products through November 1,
2005. Exhibit J-1 sets forth Existing Products. Basic Wafer
Pricing is exclusive of the pricing for Probe Services. Basic Wafer Pricing for
an Existing Product Lot shall be the Price as set forth in Exhibit B.

 

5.2.2.                     Basic Wafer Pricing for Existing Products after November 1,
2005. Exhibit J-1 sets forth Existing Products. Basic Wafer
Pricing is exclusive of the pricing for Probe

 

7

 

Services. Basic Wafer Pricing for an Existing Product
Lot shall be the lower of: (1) Best Nation Pricing pursuant to Section 5.2.2.1;
(2) Market Pricing pursuant to Section 5.2.2.2; or (3) the Basic
Wafer Price pursuant to Exhibit B, section 2.

 

5.2.2.1.                                    Best Nation Pricing. Jazz agrees to provide
Skyworks pricing no greater than the Best Nation Pricing defined as equal to
the lowest priced customer
for similar technologies and volumes.

 

5.2.2.2.                                    Market Pricing. Market Price may be
reviewed quarterly, and will be based on (1) the lowest verified current
price offered by [. . . *** . . .]
for similar technologies and similar Wafer volumes; or (2) if Skyworks receives [. . . *** . . .], then the average of the verified
lowest current price of [. . . *** . . .]
for similar technologies and similar
Wafer volumes;
provided that if the lowest price of [. . . *** . . .] is [. . . *** . . .]
or more below the
average of [. . . *** . . .], then Market Price will be set in
accordance with section (1).

 

5.3.                              New Product Pricing.

 

5.3.1.                     Basic Wafer Pricing New Products shall be
all products not identified on Exhibit J. Basic Wafer Pricing is exclusive
of the pricing for Probe Services. Basic Wafer Pricing for a New Product Lot
shall be the lower of: (1) Best Nation Pricing pursuant to Section 5.2.2.1;
(2) Market Pricing pursuant to Section 5.2.2.2; or (3) Ceiling
Pricing pursuant to Section 5.3.2.

 

5.3.2.                     Ceiling Pricing. Exhibit B sets forth
a Ceiling Price for selected process technologies in production as of the Amendment One Effective
Date. The Parties agree to meet in good faith to determine a Ceiling Price for
new process technologies put
into production after the Amendment One Effective Date, and will
update Exhibit B to add the Ceiling Price for these new process
technologies.

 

5.4.                              Shuttle Pricing. Shuttle pricing shall be
as set forth in Exhibit C.

 

5.5.                              Budgetary Pricing. Jazz and Skyworks shall
meet in [. . . *** . . .]
to review Jazz pricing issues, and Jazz will provide to Skyworks the
Jazz pricing roadmap.

 

5.6.                              Probe Service Pricing. Probe pricing for a
Wafer shall be set at of the price computed under the cost per test-hour as set
forth in Exhibit D, as amended from time to time. For any probe services
arranged by Jazz to be performed by a probe service provider pursuant to Section 3.5, Jazz agrees to [. . . *** . . .]
the service provider to Skyworks with [. . . *** . . .].

 

5.7.                              Expedited Lots. Jazz shall provide, at [. . . *** . . .],
expedited Lots to Skyworks based on Skyworks Wafer starts as follows:  Jazz shall provide [. . . *** . . .] not to exceed [. . . *** . . .]
at any given time. In addition, Skyworks may purchase [. . . *** . . .].
Subject to availability, Skyworks may also purchase [. . . *** . . .].
Unless otherwise agreed to by the parties, no more than [. . . *** . . .] can run at any
given time. Skyworks may request additional expedited Lots, either as
production Lots or engineering Lots subject to availability. The price for
additional expedited lots is set forth in Exhibit B.

 

5.8.                              Pricing set forth in this Section 5
does not include any US sales tax, but does include excise, value-added (VAT),
import fees, duties, transfer, and any tax to a non-US governmental entity.

 

8

 

6.               Ordering Process.

 

6.1.                              Purchase Order. From time to time, but not later than [. . . *** . . .]
prior to [. . . *** . . .], Skyworks may submit to Jazz a
written purchase order. Skyworks shall issue a written Purchase
Order to Jazz setting forth the specific number of fab-only Wafers needed and
the specific number of fab-probe wafers needed. The Purchase Order shall
specify delivery information, including ship to information and the required
delivery date. The Purchase Order will order sufficient volumes to satisfy
Skyworks Volume Commitment
set forth in Section 2.4.

 

6.2.                              Order Acceptance. Jazz shall accept the
Purchase Order within [. . . *** . . .],
at least up to the Jazz Wafer Capacity
Commitment set
forth in Section 3. The acceptance shall include the original delivery
commitment date for delivery of the Wafers. Amounts ordered in excess of the
Jazz Wafer Capacity
Commitment may be accepted at the discretion of Jazz. Once accepted, Jazz
shall produce and deliver the Wafers in the volumes and within the Standard
Delivery Schedule of Exhibit I, and Skyworks shall be obligated to
purchase such volumes. Any order not expressly accepted or rejected by Jazz
within the [. . . *** . . .]
period shall be deemed accepted.

 

6.3.                              Cancellation.
If Skyworks cancels a Purchase Order (in whole or in part) after the date the
processing of such Wafers has been started, then Jazz shall not complete the
Wafers and shall dispose of the cancelled Wafers according to Skywork’s
instructions. Skyworks shall pay to Jazz [. . . *** . . .] for the cancelled Wafers according
to the following schedule:

 

[. . . *** . . .]

 

Within [. . . *** . . .]
of canceling any order,
Skyworks shall increase its volume commitment only to the extent required to
make up any difference between (a) the revenue Jazz received for the
cancelled order and (b) the Revenue Jazz would have received for the
completed order, provided Jazz makes a capacity commitment sufficient to meet
such Skyworks volume commitment.

 

7.               Delivery. The Wafers will be delivered FOB
the place of manufacturing with Title and risk of loss passing at time of
delivery to the freight forwarder.

 

7.1.                              Delayed Wafers. The Parties acknowledge the importance of
on-time delivery for Wafer requirements, and agree to cooperate to reduce any
delay in delivery. In particular, Jazz agrees to make commercially reasonable
efforts to escalate lots in priority to achieve the original delivery
commitment as set in the Purchase Order process. Any additional costs
associated with the cost of the expedited services to meet the original
delivery date shall be [. . . *** . . .]
and shall not delay delivery of any other Lot .

 

7.2.                              Credits. Except for a [. . . *** . . .]
or [. . . *** . . .]
Wafer, Skyworks shall receive a credit for delayed Wafers received [. . . *** . . .]
or more days after the original delivery commitment date set in the
Purchase Order Process. For Wafers where Jazz does not provide probe service,
the delivery commitment date shall be the date the Wafers are delivered to the
Probe Service or other location as specified by Skyworks in the Purchase Order
for the Fab-only Wafers. The credit shall only be available for Wafers starting
production on or after the Amendment One Effective Date. The credit shall be
equal to a percentage of the invoice amount for the delayed wafers, as set
forth below:

 

Wafers delivered on the [...***...] after the due date –    [...***...]%

Wafers delivered on the [...***...] after the due date –    [...***...]%

Wafers delivered on the [...***...] after the due date –    [...***...]%

Wafers delivered on the [...***...] after the due date –    [...***...]%

Wafers delivered on the [...***...] after the due date –    [...***...]%

 

9

 

Wafers delivered on the [...***...] after the due date –    [...***...]%

Wafers delivered on the [...***...] after the due date –    [...***...]%

Wafers delivered on the [...***...] after the due date –    [...***...]%

Wafers delivered on the [...***...] after the due date –    [...***...]%

Wafers delivered on the [...***...] after the due date –    [...***...]%

Wafers delivered on the [...***...] after the due date –    [...***...]%

Wafers delivered more than [...***...] after the due date – [...***...]%

 

Notwithstanding
the foregoing, i) Skyworks
shall have no right to any credit under this Section 7.2 if the delay in
delivery was caused by changes requested by Skyworks; and ii) Skyworks, for a
period of [. . . *** . . .], shall have no right to any credit
for a part under this Section if Skyworks failed to maintain a
loading variance equal to or less than [. . . *** . . .]% week to week.

 

7.3.                              Delivery Notification Prior to August 1,
2003, Jazz shall provide an automated link to Skyworks where a daily update
will transfer estimated
delivery dates, quantity and lot ID for all parts in process at Jazz Fabs. The
updated delivery dates shall indicate on a part-by-part basis the delivery
date, and the quantity for all parts in process at the Jazz Fabs.

 

7.4.                              Engineering Lots. For each and every
engineering Lot started by Jazz as an HVL or P1 lot, produced and delivered by
Jazz at the request of Skyworks, Jazz shall make and hold a backup Lot, [. . . *** . . .],
like the delivered HVL or P1 Lot. Unless otherwise agreed, Jazz will start the
backup Lot within [. . . *** . . .]
after starting the engineering Lot. Jazz shall hold the backup Lot at
Metal One for a reasonable period of time not to exceed [. . . *** . . .], and upon receipt
of a PO for the purchase of the back up lot, promptly complete and deliver the
lot to Skyworks. Backup lots for any production P1 lot and HVL production lot
shall be by mutual agreement only.

 

8.               Payment.

 

8.1.                              Jazz shall
provide an invoice for Wafers delivered and accepted pursuant to Section 7.
Jazz shall also provide an invoice to Skyworks for any authorized Probe
Services. Irrespective of the specific location providing the Wafers, the invoice
shall be issued from a US office of Jazz to the Skyworks address listed below:

 

Skyworks Solutions, Inc.

20 Sylvan Road

Woburn, MA 
01801

Attn:  Accounts
Payable.

 

8.2.                              Skyworks shall
pay any amount due on the invoice within [. . . *** . . .] days of the
receipt of the invoice. Effective April 1, 2004, payment terms shall be [. . . *** . . .]
after receipt of a proper invoice.

 

9.               Second Source. The Parties acknowledge that
Jazz may need to provide an additional second source to its existing
fabrication facilities. The Jazz Second Source shall supply Wafers at the same
price, schedule, and other terms and conditions then existing at the Newport
Beach Fab facility.

 

9.1.                              To Meet Capacity Commitments. If Jazz is
unable to meet the Jazz Wafer
Capacity Commitment
pursuant to Paragraph 3, then Jazz shall provide for additional capacity at the

 

10

 

China Fab facility (the “Jazz  Second Source”).
Jazz shall be solely responsible for the effort and cost related to qualifying
the Jazz Second Source pursuant to this Paragraph.

 

9.2.                              To Meet Skyworks Requirement. If Skyworks
requests that Jazz obtain a second source for a particular semiconductor part to
meet a Customer Qualification
Requirement,  then Jazz will cooperate
with Skyworks to provide another fabrication and/or probe facility to meet the
Skyworks second source requirement (the “Skyworks
Second Source”). Skyworks shall be solely responsible for the effort
and cost related to qualifying the Skyworks Second Source pursuant to this
Paragraph.

 

9.3.                              Qualification. The Parties will cooperate
in good faith to qualify the Jazz Second Source and the Skyworks Second Source
(collectively, the “Second Sources”). Qualification
requirements and processes are set forth in Exhibit G. The cost of qualification will be
allocated as set forth in Section 9.1 and Section 9.2.

 

9.4.                              New Fab Facility.

 

9.4.1.                     For Existing Semiconductor Parts. Jazz shall comply with the written
Process Change Notification (PCN) procedure if Jazz desires to use a
Jazz Second Source facility to manufacture a semiconductor part already in
production at a Jazz Fab. The
PCN procedure requires mutual written agreement for a part to
be moved to the Jazz Second
Source. Jazz shall be allowed to run following generations of a part qualified at
the Jazz Second Source,
provided that each of the following generations has no more than a single mask
change. Jazz shall not request to move the manufacturing facility
for more than one semiconductor part per month, and no more than two
semiconductor parts per calendar quarter. The Jazz Second Source facility must
be qualified pursuant to Section 9.3 prior to Jazz delivering any
production semiconductor parts from the Jazz Second Source facility. In
addition to the qualification
procedures pursuant to Section 9.3, Jazz shall deliver, at least 6 months
prior to delivering any production semiconductor parts from the Jazz Second
Source facility, a quantity of sample parts made at the Jazz Second Source
facility. The sample parts shall be in a quantity sufficient for Skyworks and
Skyworks’ customer, to test and qualify the semiconductor part. Jazz agrees to
cooperate with Skyworks to meet customer requests for sample parts, on-site
inspections, reports, and other quality and vendor requirements. Jazz shall
continue supplying a semiconductor part from an approved Jazz Fab until
Skyworks approves, in writing, the use by Jazz of the Jazz Second Source
facility.

 

9.4.2.                     For New Semiconductor Parts. Jazz will
notify Skyworks, in writing, at least twelve (12) months prior to using the Jazz Second Source
facility to manufacture a semiconductor part not already in production at
a Jazz Fab, provided that part has been listed by Skyworks in the forecast
during the preceding [. . . *** . . .]
period. The Jazz Second Source facility must be qualified pursuant to Section 9.3
prior to Jazz delivering any production semiconductor parts from the Jazz
Second Source facility. In addition to the qualification
procedures pursuant to Section 9.3, Jazz shall deliver, at least 6 months
prior to delivering any production semiconductor parts from the Jazz Second
Source facility, a quantity of sample parts made at the Jazz Second Source
facility, or a shorter period of time, if by mutual written agreement, or
if such parts have not been forecasted for [. . . *** . . .]. The sample parts
shall be in a quantity sufficient for Skyworks and Skyworks’ customer, to test
and qualify the semiconductor part. Jazz agrees to cooperate with Skyworks to
meet customer requests for sample parts, on-site inspections, reports, and
other quality and vendor requirements. If the Jazz Second Source facility is
not approved by Skyworks under this section at least four months prior to schedule first
delivery of the new semiconductor part (or shorter period of time if by
mutual agreement), then Jazz shall manufacture the new semiconductor part at
an approved Jazz Fab. Jazz shall continue

 

11

 

manufacturing the new semiconductor part at the
approved Jazz Fab until the requirements of Section 9.4.1 are met.

 

9.4.3.                     Mutual Agreement. Subject
to Section 9.4.1, if more than one location of the Jazz Fab are qualified
for a particular semiconductor part, then Jazz may allocate production of
that semiconductor part between the qualified fabs, provided Jazz gives
Skyworks at least thirty (30) days notice of the change in allocation.

 

10.         Wafer Probe

 

10.1.                        Fab Only Wafer. Skyworks may purchase
additional Fab Only Wafers from Jazz above the Skyworks Wafer Volume Commitment set forth in
Paragraph 2.4, and at a price not to exceed the pricing set forth in Paragraph
5. The additional Wafers shall be ordered as fab-only Wafers by Skyworks
without Probe Services. At Skyworks discretion and cost, Skyworks may request
Jazz to provide Probe Services at a location approved by Skyworks.

 

10.2.                        New Probe Location. Jazz will provide
Skyworks with at least a 60 day notice before changing the location where Probe
Services are provided for any semiconductor part in production one year or
less. Jazz shall not request to change the probe location for more than one
semiconductor part per month and not more than two per quarter. Jazz will
provide Skyworks with at least a 30 day notice before changing the location
where Probe Services are provided for any semiconductor part in production
on the Amendment One Effective
Date, or any semiconductor part that has been in production for more than
one year, or any semiconductor part having a established test program qualified
by Skyworks. Once a part has been approved for a change in probe location,
that part and generations thereof, are approved for the changed probe
location.

 

11.         Yield

 

11.1.                        Yield Guarantee.

 

11.1.1.               Jazz shall deliver to Skyworks Wafer
Lots having a Probe Yield that is [. . . *** . . .]%
or higher of the Standard Yield irrespective of the provider of the Probe
Services for those Wafers.

 

11.1.2.               For any Lot having a Probe Yield less
than [. . . *** . . .]%
but greater than [. . . *** . . .]%
of the Standard Yield, Jazz shall deliver the failing Lot to Skyworks, and Jazz
shall provide Skyworks credit of an amount equivalent to the number of wafers
necessary to produce yielding die equivalent to the variance of non yielding
die necessary to reach [. . . *** . . .]%
of the Standard Yield  for that failing
Lot. For example, a failing Lot having a Probe Yield of [. . . *** . . .]% of Standard Yield
would result in Jazz providing a credit to Skyworks for the number of wafers
necessary to yield the equivalent number of yielding die to achieve the
Standard Yield in the failing lot. Skyworks may only use the credit
against new starts for additional semiconductor parts like the parts in the
failing Lot, and Jazz will make all commercially reasonable efforts to expedite
[. . . *** . . .]
the delivery of replacement semiconductor parts. Jazz does not
guarantee, and no credit shall be issued for any yield loss related to test
program updates subsequent to the establishment of Standard Yield. Test program
updates that result in a yield drop below [. . . *** . . .]% of Standard Yield
will result in the “resetting of the Standard Yield” and the subsequent probe
yield guarantees will be reset based on the newly established Standard Yield. Only
for parts not yet having an Initial Standard Yield, any yield loss for which
Jazz

 

12

 

provides credit must be mutually agreed to be a Jazz
issue. If, after using reasonable commercial efforts, Jazz is unable to achieve
[. . . *** . . .]%
of standard yield for those failing lots, Jazz may request that Skyworks
transition that part to an non-Jazz fab facility and the part and its
derivatives will be added to Exhibit J-2. After a reasonable transition
period, Jazz may refuse orders for such parts, and no credit will be due
to Skyworks for orders placed for those parts during the transition period.

 

11.1.3.               For any failing Lot having a Probe Yield
of [. . . *** . . .]%
or less of the Standard Yield, Jazz shall scrap the failing Lot and Skyworks
shall not pay for the scrapped Lot. Skyworks, at its sole discretion, may expressly
accept the failing Lot in writing. If Skyworks chooses to accept the failing
Lot, then Skyworks shall pay for the delivered wafers, and Jazz shall provide a
credit in accordance with Section 11.1.2. At Skyworks’ request, Jazz shall
make commercially reasonable efforts to expedite, [. . . *** . . .] the delivery of
replacement semiconductor parts for any shortfall resulting from having a probe
yield of [. . . *** . . .]%
or less of the Standard Yield.

 

11.2.                        Escalation. Jazz and Skyworks shall
cooperate to address and solve any yield issues. Escalation is intended to
assure that appropriate levels of management in Jazz and Skyworks are aware of
serious yield issues, and to give each Party full opportunity to cooperatively
solve and cure yield issues.

 

11.2.1.               Supply Chain Management. Jazz and
Skyworks supply chain management members shall meet promptly upon
identification, by either party, of a yield issue. If within [. . . *** . . .]
the supply chain management is unable to define a correction plan to the
satisfaction of Skyworks, the yield issue will be escalated to senior
management.

 

11.2.2.               Senior Management. Senior Management of
Jazz and Skyworks shall meet to assure proper and necessary resources are being
deployed to correct the yield issue.

 

11.3.                        Standard
Yield Update. From time to time, Skyworks may request a standard yield
update for a particular semiconductor part. Jazz shall perform the yield update on the next process
run for the semiconductor part, and the updated yield information shall be used
on that and subsequent production runs, until updated. The new yield value
shall be the numerical average of the Probe Yield from [. . . *** . . .] sequential Lots for
the semiconductor part.

 

11.4.                        For
parts in production on the Amendment
One Effective Date with known yield sensitivities (as identified in Exhibit K), the parties shall
work jointly using commercially reasonable efforts to resolve all yield issues until parts have an Initial Standard
Yield set. All parts, upon setting of that part’s Initial Standard Yield, shall
become subject to the Yield requirements of Section 11.

 

12.         Intellectual Property This Amendment does
not transfer to Jazz or any third party any right, title, interest or ownership
rights in any Skyworks intellectual property, including, but not limited to any
patents, copyrights, trademarks, trade secrets, or know how.

 

13.         Services.

 

13.1.                        Engineering Support. Jazz will provide
sufficient engineering, management, process, and technical resources, [. . . *** . . .]
to enhance yields and to continually improve reliability and quality,
for example, by providing for additional data analysis, FA, or test support. At
a minimum, Jazz shall maintain on-going engineering support commensurate with
the level provided as of the
Amendment One Effective Date for similar business conditions,
defined by headcount (number of engineers) or better.

 

13

 

13.2.                        Engineering
Services. Jazz will provide engineering wafer probe
services in a manner consistent with the way in which such services were
provided to Skyworks immediately prior to the Amendment One Effective Date. Equipment provided by
Jazz in connection with such services shall include testers, probers, and other
test support equipment reasonably necessary to support wafer probe services
related to Skyworks’ products.

 

14.         Reporting.

 

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

 

14.2.                        Jazz
shall provide Skyworks with the reports specified in Exhibit F in
accordance with frequency or schedule set forth therein. All such reports
shall be in writing and provided to Skyworks in the form specified in Exhibit F
or as otherwise mutually agreed to in writing by the Parties.

 

15.         Confidentiality

 

15.1.                        Each
Party agrees, for the Term of the SWKS Supply Agreement and any renewals
thereof and five (5) years after its expiration or termination, not to
disclose Confidential Information to any third parties, unless authorized in
writing by the other Party. Each Party may disclose Confidential
Information only to that Party’s employees and contractors, which shall include
the China Fab and probe service provider, all hereinafter referred to as a “Recipient”,
with a legitimate need to know such Confidential Information and who have the
written obligations of confidentiality not to use Confidential Information for
any purpose except as expressly permitted in writing by the other Party. Each
Recipient with a legitimate need to know such Confidential Information shall
treat the Confidential Information as a trade secret under law and shall
protect the Confidential Information by using the same degree of care, but no
less than a reasonable degree of care, to prevent the unauthorized use,
disclosure, dissemination or publication of the Confidential Information as the
Recipient uses to protect its own comparable Confidential Information. The foregoing
prohibition on disclosure of Confidential Information shall not apply to the
extent certain Confidential Information is required to be disclosed by a Party
as a matter of law or by order of a court, provided that the Party provides the
other Party with prior written notice of such obligation to disclose and
reasonably assists in obtaining a protective order therefore. Upon termination
of the SWKS Supply Agreement each Party shall deliver to the other Party any
and all materials, documents or other media (whether maintained electronically
or otherwise) containing Confidential Information, together with all copies
thereof in whatever form. In addition to the foregoing, Jazz may only
provide Skyworks Confidential Information to a China Fab or probe service
provider if (i) such information that is necessary for the China Fab or
probe service provider to perform its function as expressly permitted
under this SWKS Supply Agreement including any amendments thereto, and (ii) such
information does not contain any masks or mask set information.

 

15.2.                        By
way of illustration, but not limitation, Confidential Information may include
tangible or oral disclosures relating to: (a) designs, tests, masks, and
processes of either Party; (b) information regarding either Party’s plans
for research, development, new products, marketing and selling, business plans,
budgets and unpublished financial statements, licenses, prices and costs,
suppliers and customers; and (c) information regarding the skills and
compensation of

 

14

 

either
Party’s employees; and price, delivery, volumes, capacity, forecasts, yield
information, and performance information.

 

15.3.                        Masks. Without
prior written consent from Skyworks, all masks that are created or used in the
manufacture of any Skyworks part at any Jazz Fab shall be made in the
United States, and only finished masks shall be transferred to any Jazz Fab
outside the United States.

 

15.4.                        Process Qualification. In
the event that Jazz requests and Skyworks agrees to participate in the
qualification of any Process at a site other than Newport Beach, Jazz and
Skyworks shall enter into a separate written agreement regarding the use of any
Confidential Information in the qualification process.

 

16.         Representations and Warranties.

 

16.1.                        Each
Party warrants to the other that, as of the Amendment One Effective Date;

 

16.1.1.               it has the
authority to enter into this Amendment
One;

 

16.1.2.               it is a corporation
duly incorporated, validly existing and in good standing under the laws of the
jurisdiction in which it is organized, with full corporate power and authority
to carry on its business as it is now being conducted;

 

16.1.3.               this Amendment One
constitutes a valid and binding obligation of each Party to the other,
enforceable against each respective Party in accordance with its terms, except
that such enforcement may be subject to bankruptcy, insolvency,
reorganization, or similar laws now or hereafter in effect relating to
creditors’ rights; and

 

16.1.4.               neither the
execution, delivery and performance of this Amendment One nor the consummation of the
transactions contemplated hereby violate any provision of the charter or
organizational documents of such Party or any applicable law, regulation,
decree, judgment, or order of any regulatory government agency, or any court of
competent jurisdiction, or violate, conflict or interfere with the terms of any
agreement binding upon such Party.

 

16.2.     Use of Third Party Information. Each Party warrants to the other
that it will not knowingly use the confidential or proprietary information of
third parties to perform its respective development obligations under the SWKS Supply
Agreement.

 

17.       Term and Termination.

 

17.1.                     Term.
The SWKS Supply
Agreement shall terminate on March 30,
2007, unless otherwise terminated as set forth herein.

 

17.2.                     Term
Extension. The Term of the
SWKS Supply Agreement may be extended only by mutual written
consent of the Parties. The Parties agree to meet before [. . . *** . . .]
for a period not to exceed [. . . *** . . .],
to discuss extending the SWKS
Supply Agreement. Either Party may refuse to extend the SWKS Supply Agreement
for any reason or no reason.

 

17.3.                     Survival.
Sections 8, 12, 15, 16, 18.3 of this Amendment One shall survive any termination
of the SWKS Supply
Agreement.

 

18.       Miscellaneous

 

18.1.                        Entire Agreement. The SWKS Supply Agreement,
this Amendment One
and the Exhibits attached hereto contain the full and complete understanding
and agreement between the parties

 

15

 

relating to the subject matter hereof and
supersede all prior and contemporary understandings and agreements, whether
oral or written, relating to such subject matter.

 

18.2.                        Notice. Any and all notices permitted or
required to be given hereunder shall be deemed duly given: (i) upon actual
delivery, if delivery is by hand; or (ii) upon delivery if by overnight
courier. Each such notice shall be sent to the respective party at the address
indicated below or to any other address that the respective parties may designate
from time to time in accordance with this section.

 

	
  If to Skyworks: Skyworks Solutions, Inc.

  
	
   

  	
   

  
	
   

  	
  5221 California Ave.

  
	
   

  	
  P.O. Box 57095, Mail Code 41-1

  
	
   

  	
  Irvine, CA 92619-7095

  
	
   

  	
  Attn: Skyworks Director of External
  Sourcing

  
	
   

  	
  Fax: (949) 231-3206

  
	
   

  	
   

  
	
   

  	
  With a copy to the Director, Business
  Affairs as the same address

  
	
   

  	
  Fax: 949/231-3206

  
	
   

  	
   

  
	
  If to Jazz:

  	
  Jazz Semiconductor

  
	
   

  	
  4321 Jamboree Road

  
	
   

  	
  Newport Beach, CA 92630

  
	
   

  	
  Attn: Jazz Director Business Development

  
	
   

  	
  Fax:
                                 

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  Jazz Semiconductor

  
	
   

  	
  C/o The Carlyle Group

  
	
   

  	
  101 S. Tryon Street, 25th Floor

  
	
   

  	
  Charlotte, NC 28280

  
	
   

  	
  Attn: Claudius E. Watts, IV

  
	
   

  	
  Telecopy: (704) 632-0299

  

 

18.3.                        Export. Jazz and Skyworks shall comply with all
United States, foreign and local laws and regulations that apply to the SWKS Supply
Agreement as Amended, including, without limitation, export control laws and
regulations.

 

18.4.                        Exhibits. The following exhibits are incorporated
herein by this reference as if fully set forth herein:

 

Exhibit A:  Standard Yield For Semiconductor Parts In
Current Production

Exhibit B:  Wafer Pricing

Exhibit C:  Shuttle Pricing

Exhibit D:  Probe Pricing

Exhibit E:  Qualification Cooperation Requirements

Exhibit F:  Reports

Exhibit G:  Quality Specification

Exhibit H: 
Selected Sections from the Conexant-Jazz Agreement

Exhibit I:   
Standard, P1, and HVL Cycle Times

 

16

 

Exhibit J:    List of Parts

Exhibit K:   Parts
with known Yield Issues

Exhibit L:   Initial
Skyworks Forecast

Exhibit M:
 Initial Capacity Commitment

Exhibit N:  [. . . *** . . .] Royalty Terms

Exhibit O:  Portions of the SWKS
Supply Agreement Identified for Section 18.7.4

 

18.5.                        Counterparts. This Amendment One may be
executed in one or more counterparts and by exchange of signed counterparts
transmitted by facsimile, each of which shall be deemed an original and all of
which, when taken together, shall constitute one and the same original
instrument.

 

18.6.                        [. . . *** . . .]
Royalty Payments. Jazz
shall be solely responsible for the [. . . *** . . .]
royalty payments for [. . . *** . . .]
products manufactured at Jazz Fabs accruing from and after the Amendment One Effective Date. The
royalty terms are attached as Exhibit N.

 

18.7.                        Interpretation

 

18.7.1.               Except
as provided for in this Section 18.7, the terms and conditions of the SWKS
Supply Agreement shall remain unchanged and in full force and effect.

 

18.7.2.               Where the terms of this
Amendment One
and the terms of the SWKS Supply Agreement are in inconsistent, the terms of this Amendment One shall govern.

 

18.7.3.               Where this Amendment One provides a
new term in conflict with a term defined in the SWKS Supply Agreement the SWKS
Supply Agreement shall be interpreted in a manner that gives full meaning and
effect to the new term .

 

18.7.4.               The Sections of the SWKS Supply
Agreement set forth in Exhibit O are of no further force and effect after
the Amendment One Effective Date, and this Amendment One governs as to that
subject matter.

 

17

 

IN WITNESS WHEREOF, this Amendment One has been
executed by the duly authorized representatives of the Parties whose signatures
appear below.

 

	
  SKYWORKS SOLUTIONS, INC.

  	
   

  	
   

  	
   

  	
   

  	
  JAZZ SEMICONDUCTOR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signed:

  	
   

  	
  \s\ Kevin Barber

  	
   

  	
   

  	
  Signed:

  	
   

  	
  \s\ Shu Li

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Kevin Barber

  	
   

  	
   

  	
  Name:

  	
   

  	
  Shu Li

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  S.V.P. Operations

  	
   

  	
   

  	
  Title:

  	
   

  	
  CEO & President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  5/2/03

  	
   

  	
   

  	
  Date:

  	
   

  	
  5-03-03

  	
   

  

 

18

 

EXHIBIT A

Standard
Yield for Semiconductor Parts Currently in Production

 

[. . . *** . . .]

 

 

EXHIBIT B

 

WAFER
PRICING

 

1.               [. . . *** . . .]

 

a.               [. . . *** . . .]
pricing for
the [. . . *** . . .]
product run
at Newport Beach is [. . . *** . . .]
per [. . . *** . . .].

 

b.              [. . . *** . . .]
pricing for
[. . . *** . . .]
products
run at Newport Beach or [. . . *** . . .]
is [. . . *** . . .] per [. . . *** . . .].

 

c.               [. . . *** . . .]
pricing or [. . . *** . . .] Pricing for other [. . . *** . . .] Product run at [. . . *** . . .] will receive wafer discounts
below:

[. . . *** . . .]

 

d.              The [. . . *** . . .]
pricing for
[. . . *** . . .]
products
set forth above includes the cost for probe services

 

e.               Should Jazz and [. . . *** . . .] reach further pricing
reductions, Jazz shall share such reductions with Skyworks at an allocation to
be mutually agreed upon.

 

2.               Existing
Product Pricing:  Wafer Pricing is
exclusive of the pricing for Probe Services.

 

a.               All Existing Products other
than [. . . *** . . .]

i.      Prices:

 

	
  Pricing is Fab Only

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract Price

  	
   

  	
  [...***...]

  

 

 

Subject to
availability, P1 lot charges shall not exceed [. . . *** . . .] X of the Wafer Price, and
HVL charges shall not exceed [. . . *** . . .]
X of the
wafer price.

 

b.              [. . . *** . . .]
Pricing

i.      Prices:  

 

	
  Fab Pricing Only

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  
	
  [...***...]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Basic/Contract
  Price [...***...]

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Basic/Contract
  Price [...***...]

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  	
  [...***...]

  

[. . . *** . . .]

 

Credits:    From the Amendment One Effective Date and
until [. . . *** . . .],
Skyworks shall receive credits for any payments for existing [. . . *** . . .]
product as set forth below.

 

[. . . *** . . .]

 

 

3.               Ceiling
Pricing
for new products within selected process technologies not in production as of
the Amendment One Effective Date

 

	
  Pricing is Fab Only

  	
   

  	
  Ceiling Price

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price [...***...]

  	
   

  	
  [...***...]

  
	
  [...***...]

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price [...***...]

  	
   

  	
  [...***...]

  
	
  [...***...]

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  
	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  
	
  Basic/Contract
  Price

  	
   

  	
  [...***...]

  

 

Wafer Rework Pricing. Skyworks shall reimburse Company for any rework requested
by Skyworks in an amount determined by multiplying the applicable Contract or
Basic Price for the completed Wafers times a ratio determined by dividing the
number of additional Moves required as a result of such rework by the total
number of moves required for processing the Wafer.

 

 

EXHIBIT C

Shuttle
Pricing

 

	
  Technology

  	
   

  	
  Maximum Price per Tile

  
	
  [. . . *** . . .]

  	
   

  	
  [. . . *** . . .]

  
	
  [. . . *** . . .]

  	
   

  	
  [. . . *** . . .]

  
	
  [. . . *** . . .]

  	
   

  	
  [. . . *** . . .]

  

 

Notes:

 

1)              [. . . *** . . .]
incurs additional fee of $[. . . *** . . .]
per wafer

2)              Additional wafers
subject to availability and incur additional fees

3)              Purchase Orders &
FSRF’s (Foundry Service Request Forms) must be submitted prior to tape-in date

4)              Shuttle/MPW
(Multiple Project Wafer) schedule to be updated and communicated to
Skyworks quarterly

 

 

EXHIBIT D

Production &
Engineering Probe Pricing

 

Probe Pricing:

 

	
  Test
  Platform

  	
   

  	
  Production Rates

  	
   

  	
  Engineering Rates

  
	
  Catalyst

  	
   

  	
  [. . . *** . . .]

  	
   

  	
  [. . . *** . . .]

  
	
  Trillium

  	
   

  	
  [. . . *** . . .]

  	
   

  	
  [. . . *** . . .]

  
	
  Synchro

  	
   

  	
  [. . . *** . . .]

  	
   

  	
  [. . . *** . . .]

  

 

Probe Card & Probe Card Services:

 

To be quoted on a case by case basis.

 

Terms:

 

1)              All wafers manufactured at
Jazz Semiconductor that require probe are to be probed by or managed by Jazz in
accordance with Section 3.5.

2)              Minimum guaranteed
Engineering hours for the Catalyst probe station is [. . . *** . . .] hours. Additional
hours may be purchased subject to mutual agreement.

3)              The Production Rates listed
above apply to all Jazz locations, [. . . *** . . .]

4)              Catalyst test stations owned
by Skyworks shall remain under the same relocation restrictions per the SWKS
Supply Agreement.

5)              The terms of this Probe
Pricing Exhibit shall be in effect for [. . . *** . . .] after the
Amendment One Effective Date, and shall automatically renew for additional [. . . *** . . .]
terms for the length of this SWKS Supply Agreement unless a party
requests this Probe Pricing Exhibit be re-negotiated. Any renegotiated
Probe Pricing Exhibit shall be upon mutual agreement, and the failure to
renegotiate this Probe Pricing Exhibit shall not affect the enforceability
of any other term of this Amendment One.

6)              The rates in the table above
are [. . . *** . . .]
rates only for [. . . *** . . .].

 

 

EXHIBIT E

Qualification
Cooperation Requirements

 

[...***...]

 

 

EXHIBIT F

Reporting

 

Jazz shall prepare and provide the following
reports to Skyworks. Such reports shall be comparable in form, substance, and
content to those reports prepared by the Newport Beach Fab as of the Amendment
One Effective Date and shall be provided in accordance
with the schedule and in the form specified below:

 

1.              Work in process
(WIP) reports – daily; electronic form

2.              E-Test (WAT/PCM)
data – upon request; electronic form

3.              In-line control
data – upon request; electronic or paper form

4.              Yield trend
charts – upon request; electronic or paper form

5.              On-time delivery
report – quarterly; electronic form

6.              Commitment to forecast
– monthly; electronic form

7.              Capacity
availability – quarterly; electronic form

8.              Probe data –
upon request; electronic or paper form

9.              Test
data – upon request; electronic form

10.       SPC
(Cp/Cpk) data for key nodes – upon request; electronic form

11.       Scrap
Report — monthly; electronic form

12.       Engineering
Lot (e-lot) Inventory Report — monthly; electronic form

13.       Cycle
Time Report — monthly;
electronic form

 

 

EXHIBIT G

Quality
Specifications

 

1.0 Purpose:

 

This document describes the wafer and product
level reliability testing procedures to qualify a new process at Jazz
Semiconductor. Wafer level reliability testing for the purposes of monitoring
and improving release process is included.

 

2.0 Scope:

 

The requirements and procedures herein apply to
the [. . . *** . . .]
and [. . . *** . . .]
process qualifications at the Jazz fabrication facility.

[. . . *** . . .]

 

 

EXHIBIT H

Selected
Sections from the CNXT Supply Agreement

 

2.1 (f) Purchases for Certain Entities. Company agrees that
Conexant, as agent, may place orders for any Conexant Spin-Off or Conexant
Affiliate, under the same terms and conditions for Wafers established under
this Supply Agreement. The Parties acknowledge and agree that at any time after
a Conexant Spin-off commences operations as a separate legal entity, (1) Conexant
may partition the Wafer Volume Commitments between Conexant and Conexant
Spin-offs, assuring that the total volume meets the total Wafer Volume
Commitment; (ii) Conexant and Conexant Spin-offs may partition Wafer
Credits between them, provided that the total number of Wafer Credits held by
Conexant and all Conexant Spin-offs will not exceed the original number of
Wafer Credits and (iii) each Conexant Spin-off (a “Participating Spin-off’)
may enter into a separate agreement with Company containing all of the
terms and conditions of this Supply Agreement, in which case the Participating
Spin-off will order Wafers directly from Company. Company will have the right
to review the allocation of Wafer Volume Commitments, Wafer Credits, and other
rights hereunder partitioned and assigned to each Participating Spin-off; and
Conexant will work in good faith with Company to resolve any reasonable
objections that the Company may have to such allocation. If Conexant and
Participating Spin-offs partition Wafer Volume Commitments as set forth above,
the determination of whether the Wafer Volume Commitment is Met will be
determined on a collective basis, and no additional payments to meet the Wafer
Volume Commitment will be due to Company if the total number of Wafers
purchased by Conexant and Participating Spin-offs is sufficient to meet or
exceed the applicable Wafer Volume Commitment. Conexant will remain responsible
to Company for satisfaction of Wafer purchase and payment obligations hereunder
regardless of whether it is Conexant itself or a Participating Spin-off that
fails to satisfy any such obligations. In the event that a third party acquires
any Participating Spin-off, its business, or all or substantially all of its assets,
then such third party may only assume the rights of Participating
Spin-offs hereunder with respect to Wafer types of such Participating Spin-off
that have been manufactured or are under development by the Newport Beach Fab
at the time of such acquisition.

 

 

EXHIBIT I

Current
Standard, P1, and HVL Cycle Times

 

[. . . *** . . .]

 

 

EXHIBIT J

List of
Parts

 

[. . . *** . . .]

 

 

EXHIBIT K

Parts with
Known Yield Issues

 

Parts in production on the Amendment One Effective Date
with known yield sensitivies due to design/process interactions and reduced
marginality.

 

[. . . *** . . .]

 

 

EXHIBIT L

Initial
Skyworks Forecast

 

[. . . *** . . .]

 

 

EXHIBIT M

Initial
Jazz Capacity Commitment

 

 

EXHIBIT N

Skyworks
[. . . *** . . .]
Royalty Terms 

 

Except from the [. . . *** . . .]
 as assumed by Skyworks:

 

[. . . *** . . .]

 

 

EXHIBIT O

Portions
of the SWKS Supply Agreement Identified for Section 18.7.4

 

	
   

  	
  Section 1.2

  	
   

  	
  Basic Price

  
	
   

  	
  Section 1.6

  	
   

  	
  Current Average Probe Yield

  
	
   

  	
  Section 1.18

  	
   

  	
  Planning Yield Assumption

  
	
   

  	
  Section 1.20

  	
   

  	
  Probe Yield

  
	
   

  	
  Section 1.31

  	
   

  	
  Uncommitted Available Capacity

  
	
   

  	
  Section 2.1(a)

  	
   

  	
  Volume Commitments

  
	
   

  	
  Section 2.1(b)

  	
   

  	
  Segments 1 Through 6

  
	
   

  	
  Section 2.1(d)

  	
   

  	
  Requirements in Excess of the Wafer Volume
  Commitment

  
	
   

  	
  Section 3.2

  	
   

  	
  Forecast

  
	
   

  	
  Section 3.3 (a)

  	
   

  	
  Purchase Order

  
	
   

  	
  Section 3.3(c)

  	
   

  	
  Reserved SiGe Wafers

  
	
   

  	
  Section 3.4

  	
   

  	
  Acceptance and Acknowledgement

  
	
   

  	
  Section 3.5

  	
   

  	
  Wafer Lot Expedites

  
	
   

  	
  Section 3.7(c)

  	
   

  	
  Cancellation after Process Start

  
	
   

  	
  Section Of Section 6(a) Wafers, only the sentence: “In
  Segments ... in all invoices.”

  
	
   

  	
  Section 6(b)

  	
   

  	
  Probe Services and Re-probe Services

  
	
   

  	
  Section 6.3

  	
   

  	
  Taxes

  
	
   

  	
  Section 8.2

  	
   

  	
  Process Failure

  
	
   

  	
  Section 13.9

  	
   

  	
  NoticesExhibit 10.44

AMENDMENT TWO

 

This AMENDMENT TWO
to THE SKYWORKS-JAZZ WAFER SUPPLY AND SERVICES AGREEMENT (“Amendment
Two”) is entered into this 13th day of June, 2003 (“Effective
Date”) between JAZZ SEMICONDUCTOR, a Delaware limited liability company (“Jazz” or “Company”), and SKYWORKS SOLUTIONS, INC. a
Delaware corporation (“Skyworks”)

 

PURPOSES

 

Whereas, AMENDMENT ONE TO THE SKYWORKS-JAZZ WAFER SUPPLY AND SERVICES
AGREEMENT (the “Amendment One “)
was entered into as of May 2, 2003 by and between JAZZ SEMICONDUCTOR, a
Delaware limited liability company (“Jazz”
or “Company”),
and SKYWORKS SOLUTIONS, INC. A Delaware corporation (“Skyworks”); and

 

Whereas, in the exercise of Section 4.2.2 of Amendment One, Jazz
and Skyworks have agreed to supplemental terms and conditions incorporated by
Amendment Two in order to secure the manufacturing at Jazz for the following
Skyworks parts and their derivatives: [. . . *** . . .]:

 

Whereas, Jazz and Skyworks desire to amend the Skyworks-Jazz Wafer
Supply and Services Agreement as Amended in Amendment One, to include the
provisions contained herein;

 

AMENDMENT

 

NOW, THEREFORE, in consideration of the foregoing premises and the
mutual representations and agreements set forth herein, the parties agree as
follows:

 

1.               Skyworks [. . . *** . . .].

 

1.1         Design. Skyworks
shall design [. . . *** . . .]
and their derivatives  using the [. . . *** . . .].

 

1.2         Migration.
Skyworks will use commercially reasonable efforts to migrate [. . . *** . . .]
currently under development,  and
their derivatives or follow-on products to the Jazz [. . . *** . . .] process, at the
first opportunity, provided such migration has no significant impact on time to
market or design resources.

 

1.3         Pricing. Wafer
invoice price for [. . . *** . . .]
and their derivatives shall be based on the following table*:

 

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

 

	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Technology

  Description 

  	
   

  	
  Wafer

  Size

  	
   

  	
  Fab

  Location

  	
   

  	
  Run rate [...***...]

  WSPD

  	
   

  	
  Run rate [...***...] WSPD

  	
   

  
	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]”

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
																

 

* See Schedule 1 for complete details.

 

** Wafer invoice prices for [. . . *** . . .]  and beyond to be determined by the parties at a
later date.

 

1.4   Credits. Skyworks shall be eligible for and shall receive
credits equal to the difference between (a) [. . . *** . . .]  and (b) (i) [. . . *** . . .]
per [. . . *** . . .]
wafer [. . . *** . . .],
or (ii) [. . . *** . . .]
per [. . . *** . . .]
wafer with the exact price per [. . . *** . . .]
wafer to be finalized upon process availability and engineering
determination of [. . . *** . . .]
compared to [. . . *** . . .]
process technology. Jazz will provide to Skyworks [. . . *** . . .]
payments for the
wafer credits available each [. . . *** . . .]
(“Credit Payments”).
Alternatively, in lieu of such Credit Payments, Skyworks shall be free to use
any available credit, at any time,  to
purchase any type and volume of wafers from Jazz. Jazz will provide a [. . . *** . . .] summary of available credit and will
reference invoice number, credit earned and date of invoice. This credit
program for [. . . *** . . .]
and their derivatives
shall continue for the life of the product(s).

 

2.               [. . . *** . . .]
Design. In the event that
Skyworks launches the development of [. . . *** . . .],
Skyworks agrees that [. . . *** . . .]
and its derivatives shall be designed using Jazz processes, including,
but not limited to, [. . . *** . . .].
Upon selection of a specific Jazz process for the design of [. . . *** . . .]
and its derivatives, the applicable terms and conditions, pricing and
credits shall be governed by the Skyworks-Jazz Wafer Supply and Services
Agreement as amended in Amendment One and Amendment Two.

 

3.               [. . . *** . . .]

 

3.1         Design. In the event that Skyworks
launches the development of [. . . *** . . .],
Skyworks shall design the [. . . *** . . .]
and its derivatives using Jazz processes for the life of that product.

 

3.2         Pricing. Wafer invoice price for the [. . . *** . . .]
and its derivatives shall be based on the following table for the life
of the product(s)*:

 

	
  Technology

  Description

  	
   

  	
  Wafer

  Size

  	
   

  	
  Fab

  Location

  	
   

  	
  # of

  Photo

  Masks

  	
   

  	
  # of

  Process

  Layers

  	
   

  	
  Mask Set

  Charge

  	
   

  	
  Production

  Lot

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

*See Schedule  2 for complete details.

 

4. Except as provided for in this Amendment Two, the terms and
conditions of the Skyworks-Jazz Wafer Supply and Services Agreement as amended
in Amendment One shall remain unchanged and in full force and effect.

 

IN WITNESS WHEREOF, this Amendment Two has been executed by the duly
authorized representatives of the Parties whose signatures appear below.

 

	
  SKYWORKS SOLUTIONS, INC.

  	
   

  	
  JAZZ
  SEMICONDUCTOR

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed:

  	
   

  	
  \s\ Mohy F. Adelgany

  	
   

  	
  Signed:

  	
   

  	
  \s\ Shu Li

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Mohy F. Adelgany

  	
   

  	
  Name:

  	
   

  	
  Shu Li

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Vice President & Business

  	
   

  	
  Title:

  	
   

  	
  CEO

  	
   

  
	
   

  	
   

  	
  Director – RF Systems Business

  Unit

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  6/13/03

  	
   

  	
  Date:

  	
   

  	
  6/23/03

  	
   

  

 

 

SCHEDULE 1

 

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

 

 

SCHEDULE 2

 

[. . . *** . . .2 pages omitted]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]