Document:

Exhibit 10.5

 

CERTAIN INFORMATION (INDICATED BY “[***]”) IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

TOSHIBA

 

Toshiba America Electronic Components, Inc.

2950 Orchard Parkway, San Jose, CA 95131

 

Design and Production Agreement

 

Amendment #1

 

Netlist Inc.

 

This Amendment #1 (“Amendment”) to the Register ASIC Design and Production Agreement, dated July 31, 2008, (TAEC#27N1242613) (“Agreement”) is between Toshiba America Electronic Components, Inc., with a principal place of business at 19900 MacArthur Boulevard, Suite 400, Irvine, CA 92612 (“TAEC”) and Netlist Inc. with a place of business at 51 Discovery, Suite 150 Irvine, CA 92618 (“Customer”) and sets out the terms and conditions under which TAEC will design the product identified herein for Customer. This Amendment is effective as of the date finally executed below (“Effective Date”).

 

1.                                      Project Name

 

Register ASIC

 

2.                                      New Schedule

 

The parties agree to delete the contents of Section 4 of the Agreement, Schedule, and replace it with the following:

 

Major Project Milestones

 

	
Event
    	
 
    	
Target Date/Completed
    
	
Development   PO Released
    	
 
    	
[***]
    
	
Preliminary   Feasibility Study
    	
 
    	
[***]
    
	
Design   Decision
    	
 
    	
[***]
    
	
Design   Initiation
    	
 
    	
[***]
    
	
Package   Selection Finalized
    	
 
    	
[***]
    
	
Early   RTL for Pipecleaning
    	
 
    	
[***]
    
	
Final   RTL (functionally correct)
    	
 
    	
[***]
    
	
Tapeout   — Second Signoff (GDSII transfer)
    	
 
    	
[***]
    
	
Delivery   of Prototypes
    	
 
    	
TBD
    
	
System   compliance phase - start
    	
 
    	
TBD
    
	
System   compliance phase - complete
    	
 
    	
TBD
    
	
1st   Risk Production shipment
    	
 
    	
TBD
    

 

Production turnaround time: 16 working weeks.

 

Schedule is provisional.

 

 

3.                                      New Package and Die Size Option

 

The parties agree to delete the contents of Section 6 of the Agreement, Package and Die Size Option, and replace it with the following:

 

	
Package
    	
 
    	
Ball Pitch
    	
 
    	
Body Size
    	
 
    	
Substrate Layers
    	
 
    	
Die Size
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    

 

4.                                      New Price

 

The parties agree to delete the contents of Section 8 of the Agreement, Price, and replace it with the following:

 

	
First
    	
 
    	
1M   pieces:
    	
 
    	
US$[***]
    	
 
    	
*[***]
    
	
Next
    	
 
    	
2M   pieces:
    	
 
    	
US$[***]
    	
 
    	
 
    
	
Next
    	
 
    	
2M   pieces:
    	
 
    	
US$[***]
    	
 
    	
 
    
	
After   first
    	
 
    	
5M   pieces:
    	
 
    	
US$[***]
    	
 
    	
 
    

 

* Prices for first 1 Mpcs represent an addition of US$[***] per unit in amortized Total NRE cost. See Section 10.

 

Changes in die size will affect the price quoted.

 

The prices quoted herein for mass production are based on the assumption of adequate yield. TAEC reserves the right to adjust pricing based on mutual agreement in the event that adequate yield figures, in TAEC’s reasonable opinion, are not achieved by the start of mass production despite reasonable commercial efforts by both parties. TAEC will provide Netlist with timely data such that Netlist can reasonably assess yield.

 

Prices do not include and are subject to any applicable sales tax.

 

5.                                      New Engineering Sample and Risk Production Pricing

 

The parties agree to delete Section 13.3 of the Agreement. The parties agree to delete the contents of Section 12 of the Agreement, Extra Engineering Samples, and replace it with the following:

 

All extra engineering samples and Risk Production parts shall be sold at US$[***] each (2X the unit price of US[***]).

 

All extra engineering samples are sold as Prototypes and are subject to, without limitation, Articles 18.2 and 19.1 of the Design and Production Agreement Terms and Conditions (“Terms and Conditions”). All Risk Production parts are subject to, without limitation, Articles 18.2 and 19.2 of the Terms and Conditions. TAEC reserves the right in its sole discretion to determine whether to accept extra engineering sample or Risk Production orders.

 

6.                                      Additional Non-Recurring Engineering Charges and Payment Schedule

 

Customer agrees to pay additional non-recurring engineering charges of US$[***] (“Additional NRE”) to TAEC for design support. The Additional NRE will be due and payable as follows:

 

1.                                       US$[***] upon Tapeout.

 

2.                                       US$[***] upon Delivery of Prototypes together with test logs showing successful completion of the mutually agreed-upon tests.

 

For the avoidance of doubt, the Additional NRE payable under this Amendment is in addition to and does not replace the NRE payable under the Agreement.

 

 

7.                                      Cancellation

 

7.1                                 If Customer wishes to discontinue the project after execution of this Amendment, then in addition to the provisions set Forth in Section 10 of the Terms and Conditions, the Customer shall be responsible to pay TAEC for the NRE charges as set forth below (“Additional Cancellation Fee”), unless otherwise agreed in writing between TAEC and the Customer:

 

	
Time
    	
 
    	
Additional Cancellation Fee
    
	
[***]
    	
 
    	
[***]% of   Additional NRE
    
	
[***]
    	
 
    	
[***]% of   Additional NRE
    
	
[***]
    	
 
    	
[***]% of   Additional NRE
    

 

7.2                                 For the avoidance of doubt, NRE already invoiced to Customer per the milestones and NRE payment schedule set forth herein and in the DPA (“Paid NRE”) shall offset the Additional Cancellation Fee assessed in Article 7.1 above. To the extent that the Paid NRE exceeds the Additional Cancellation Fee and the Cancellation Fee set forth in Section 10 of the Terms and Conditions of the Agreement, TAEC shall not charge further Additional Cancellation Fee; however, Paid NRE will not be refunded upon cancellation of the design.

 

8.                                      Additional Terms

 

8.1                                 Customer acknowledges that it is solely responsible for performing [***] to screen [***] on all Products, and Customer agrees to perform such [***] prior to [***] to its customers.

 

Except as modified herein, all other terms and conditions of the Agreement shall remain in full force and effect per their terms.

 

	
Toshiba   America Electronic Components, Inc.
    	
 
    	
NetList   Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Takeshi Iwamoto
    	
 
    	
/s/   Gail Itow
    
	
Signature
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Gail   Itow, CFO
    
	
Takeshi   Iwamoto VP, Customer SoC &
    	
 
    	
Printed   Name and Title
    
	
Foundry   Business Unit
    	
 
    	
 
    
	
Printed   Name and Title
    	
 
    	
1-28-10
    
	
 
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
1-28-10
    	
 
    	
 
    
	
DateExhibit 10.6

 

CERTAIN INFORMATION (INDICATED BY “[***]”) IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

TOSHIBA

 

Toshiba America Electronic Components, Inc.

2950 Orchard Parkway, San Jose, CA 95131

 

Design and Production Agreement

 

Amendment #2

 

Netlist Inc.

 

This Amendment #2 (“Amendment #2”) to the Register ASIC Design and Production Agreement, dated July 31, 2008, as amended (TAEC#27N1242613) (“Agreement”) is between Toshiba America Electronic Components, Inc., with a principal place of business at 19900 MacArthur Boulevard, Suite 400, Irvine, CA 92612 (“TAEC”) and Netlist Inc. with a place of business at 51 Discovery, Suite 150 Irvine, CA 92618 (“Customer”) and sets out the terms and conditions under which TAEC will design the product identified herein for Customer, This Amendment is effective as of the date finally executed below (“Effective Date”).

 

1.                                      Project Name

 

Register ASIC

 

2.                                      New Schedule

 

The parties agree to delete the contents of Section 4 of the Agreement, Schedule, and replace it with the following

 

Major Project Milestones

 

	
Event
    	
 
    	
Target Date/Completed
    
	
Development   PO Released
    	
 
    	
[***]
    
	
Preliminary   Feasibility Study
    	
 
    	
[***]
    
	
Design   Decision
    	
 
    	
[***]
    
	
Design   Initiation
    	
 
    	
[***]
    
	
Package   Selection Finalized
    	
 
    	
[***]
    
	
Early   RTL for Pipecleaning
    	
 
    	
[***]
    
	
Final   RTL (functionally correct)
    	
 
    	
[***]
    
	
Tapeout   — Second Signoff (GDSII transfer)
    	
 
    	
[***]
    
	
Delivery   of Prototypes
    	
 
    	
TBD
    
	
System   compliance phase — start
    	
 
    	
TBD
    
	
System   compliance phase — complete
    	
 
    	
TBD
    
	
1st Risk Production shipment
    	
 
    	
TBD
    

 

Production turnaround time:  16 working weeks.

 

Schedule is provisional.

 

 

3.                                      New Internal/External IP

 

The parties agree to delete the contents of Section 7 of the Agreement, Internal/External IP and replace it with the following:

 

Internal IP:

 

[***]

 

External IP:

 

[***]

 

Testing of Internal and External IP will proceed as set forth in the Product Testing Agreement between the parties (TAEC# 121ANN311)

 

Customer will he responsible for any and all support, Defect/Bug fixes, upgrades and/or maintenance that may be required for the External IP.

 

Customer is responsible for validating the External IP as used in the design. TAEC will generate test vectors for manufacturing testing of External IP as described in the Register DFT specification.

 

4.                                      Addition to Section 9, Non-Recurring Engineering Charges (“NRE”)

 

The parties agree to add the following provision to Section 9 of the Agreement, Non-Recurring Engineering Charges (“NRE”):

 

9.5                                 External IP Defects/Bugs

 

TAEC will be responsible [***] and [***] verification of any [***]. Customer agrees that [***] of [***] is Customer’s responsibility and TAEC does not assume any portion of financial cost incurred by Customer in [***] or [***] any [***]. In the event any [***] is identified in the [***] after TAEC has procured such [***], then TAEC will communicate in writing to Customer such [***] provider notification along with any [***] associated with fixing such [***], Customer may choose to [***] this [***] at its own discretion. TAEC will not undertake to [***] until Customer so requests in writing and the parties have agreed on a [***] for such work. If Customer requests TAEC to repair the [***] in the [***],[***] will be calculated as set forth in Section 9.2.

 

[***], at its sole discretion, may choose to [***]for additional [***] resulting from any [***] which [***] believes has occurred as a result of [***] actions and which was not present in the [***] upon receipt from the [***].

 

 

5.                                      Additional Features Non-Recurring Engineering Charges and Payment Schedule

 

5.1                               Customer agrees to pay non-recurring engineering charges (“Additional Features NRE”) to TAEC for support of design changes. Support includes:

 

[***]

 

5.2                               The Additional Features WE will be calculated according to the resources expended by TAEC.  Which will be charged at the rate of US$[***] per full-time-equivalent person per week.  TAEC will provide a weekly update to Customer regarding resources expended.

 

TAEC estimates that the Additional Features NRE for this Register design will be US$[***] or [***].  This estimate is subject to change.

 

5.3                                 The Additional Features NRE will be payable as fellows:

 

1.                                       US$[***] ([***]% of estimated Additional Features NRE) upon tapeout or [***] whichever is earlier.

 

2.                                     The balance (total person-weeks actually expended, less US$[***]), upon Delivery of Prototypes together with test lugs showing successful completion of the Toshiba Testing as defined in the Product Testing Agreement between the parties.

 

For the avoidance of doubt, the Additional Features NM: payable under this Amendment #2 is in addition to and does not replace the NRE payable under the Agreement and/or Amendment #1.

 

6.                                      Cancellation

 

6.1                               If Customer wishes to discontinue the project set forth in this Amendment #2 prior to tapeout, then Customer shall pay TAEC US$[***] (“Additional Features Cancellation Fee”). In addition, TALC reserves the right to invoice Customer for any resources expended by TAEC prior to cancellation in excess of 14.88 person-weeks. The Additional Features Cancellation Fee shall be offset by any amount of the Additional Features NRE already paid to TAEC by Customer.

 

6.2                               In the event that Customer unilaterally fails to provide information, data, or approvals necessary for TAEC to proceed with the project for a period of [***] from TAEC’s initial request for such information, data, or approvals, TAEC reserves the right to deem the project set forth in this Amendment #2 cancelled and assess the Additional Features Cancellation Fee.

 

Except as modified herein, all other terms and conditions of the Agreement shall remain in full force and effect per their terms.

 

 

	
Toshiba   America Electronic Components, Inc.
    	
NetList   Inc.
    
	
 
    	
 
    
	
/s/   Takeshi Iwamoto
    	
 
    	
/s/   Gail Itow
    
	
Signature
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Gail   Itow, CFO
    
	
Takeshi   Iwamoto VP, Customer SoC & Foundry Business Unit
    	
 
    	
Printed   Name and Title
    
	
Printed   Name and Title
    	
 
    	
 
    
	
 
    	
 
    	
3/5/10
    
	
 
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
3/10/10
    	
 
    	
 
    
	
Date

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