EXHIBIT 10.1
Amendment to Option Agreement
This Amendment, made to Option Agreement between Benchmarq
Microelectronics, Inc., and Taiwan Semiconductor Manufacturing Co., Ltd., dated
May 31, 1996 (the "Option Agreement"), is effective as of March 31, 1997 (the
"Effective Date") by and between Benchmarq Microelectronics, Inc., a company
organized under the laws of Delaware, USA, with its principal address at 00000
Xxxxxxxxx Xxxxxxx, Xxxxxx, Xxxxx 00000, XXX ("Customer"), and Taiwan
Semiconductor Manufacturing Co., Ltd., a company organized under the laws of the
R.O.C, with its registered address at Xx. 000, Xxxx Xxx. 0, Xxxxxxx-Xxxxx
Xxxxxxxxxx Xxxx, Xxxxxxx, Taiwan, R.O.C ("TSMC").
In consideration of mutual covenants and conditions, both parties agree to
amend the Option Agreement as follows:
I. Defined terms used herein but not defined herein shall have the meaning set
forth in the Option Agreement.
II. Amend Sections 5 (b), 11 and 15 as follows:
5 (b) Customer shall deliver to TSMC, within seven (7) days following the
Effective Date of this Amendment, one promissory note in an amount of
US$1,380,000 due as specified in Exhibit D and payable to TSMC or order,
which promissory note is in the form of Exhibit E. The executed version of
the form of promissory note attached as Exhibit E shall be returned by TSMC
to Customer within seven (7) days upon receipt of corresponding Option Fee by
TSMC. TSMC shall return to Customer the original promissory note, dated May
31,1996, executed by customer in the amount of US$3,380,000 to Customer
within seven (7) days following the Effective Date of this Amendment.
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11. This Agreement, including Exhibits A-E and the Amendment, constitutes the
entire agreement between the parties with respect to the subject matter
hereof, and supersedes and replaces all prior or contemporaneous
understanding, agreements, dealings and negotiations, oral or written,
regarding the subject matter hereof. In the event any provision of this
Agreement conflicts with the Amendment, this Amendment shall govern with
respect to the subject matter therein. No modification, alteration or
amendment of this Agreement shall be effective unless made in writing and
signed by both parties. No waiver of any breach or failure by either party
to enforce any provision of this Agreement shall be deemed a wavier of any
other or subsequent breach, or a waiver of future enforcement of that or
any other provision.
15. Both parties shall keep in strict confidence the existence and contents of
this Agreement and the Amendment, and take best precaution possible to
prevent any unauthorized disclosure or use thereof. Both parties agree that
no disclosure of this Agreement, the Amendment or any matters relating
hereto may be made without the disclosing party first providing the
proposed disclosure to the other party two weeks in advance for consent and
reasonable changes. In the event disclosure is required by laws or
governmental regulations, the disclosing party shall provide the other
party two weeks prior written notice and give the other party the
opportunity to protest, participate in preparing disclosure or make
reasonable changes thereto.
III. Add new Section 2 (d)
Subject to availability of 0.5um embedded flash process technology at TSMC
by July 1997, both parties will adopt either Exhibit B.1 or Exhibit B.2 to
be Exhibit B and applied to this Agreement. Upon production release (i.e.
approval for "Open Order Entry" at Benchmarq) of the first product
utilizing the 0.5um embedded flash process technology, Exhibit B.1 shall be
adopted as Exhibit B and applied to this Agreement. In the event 0.5um
embedded flash process technology is not available at TSMC by July 1997 or
in the event Customer decides not to utilize 0.5um embedded flash process
technology available at TSMC on or before December 31, 1997, Exhibit B.2
shall be adopted as Exhibit B and applied to this Agreement.
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Add to the End of Section 7(a)
"In the event that Exhibit B.2 is adopted as Exhibit B and applied to this
Agreement, this Agreement shall be extended to December 31, 2001."
Add to the End of Section 7(d)
"In no event shall either party be liable for indirect, consequential, or
special damage arising from this Agreement or its performance."
IV. Replace Original Exhibits A, B and D with New Exhibits A, B.1, B.2 and D.
Benchmarq Microelectronics, Inc. Taiwan Semiconductor
Manufacturing Co., Ltd.,
/s/ Xxxxxxx Xxxxx /s/ Xxxxxx X. Xxxxxx
----------------- --------------------
Xxxxxxx Xxxxx Xxxxxx X. Xxxxxx
President & CEO President
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EXHIBIT A
EQUIVALENCY FACTOR TABLE
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Remarks: (1) ******************************************************************
(2) ************************************************************
(3) ************************************
(4) ********************************************************
Date of issue: 04/11/97
(* - "PORTIONS OF THE SUBJECT EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT")
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Exhibit B.1
BENCHMARQ/TSMC
COMMITTED CAPACITY
Unit: *********************
1996 1997 1998 1999 2000
---- ---- ---- ---- ----
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* - ***************************************************************************
Deposit Required: US$5.88M -- *******************************
***************
Option Fee Schedule: US$2.50M -- Xxxxx 00, 0000 (Xxxx)
US$2.00M -- Xxxxx 00, 0000 (Xxxx)
US$1.38M -- December 31, 1997
(* - "PORTIONS OF THE SUBJECT EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT")
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Exhibit B.2
BENCHMARQ/TSMC
COMMITTED CAPACITY
Unit: *********************
1996 1997 1998 1999 2000 2001
---- ---- ---- ---- ---- ----
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* - ***************************************************************************
Deposit Required: US$5.88M -- *******************************
****************
Option Fee Schedule: US$2.50M -- Xxxxx 00, 0000 (Xxxx)
US$2.00M -- Xxxxx 00, 0000 (Xxxx)
US$1.38M -- December 31, 1997
(* - "PORTIONS OF THE SUBJECT EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT")
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Exhibit D
OPTION FEE
Year Option Capacity Option Fee Due Date
(Unit: ******** (Unit: US$)
**********)
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1997-2000 *** $2.5M March 31,1996(Paid)
(or 2001) $2.0M March 31,1997(Paid)
$1.38M December 31,1997
(* - "PORTIONS OF THE SUBJECT EXHIBIT HAVE BEEN OMMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT")
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EXHIBIT E
STANDARD FORM OF PROMISSORY NOTE
Amount: US $1,380,000 DUE DATE: DECEMBER 31, 1997
The Undersigned, BENCHMARQ Microelectronics, Inc. (the "Maker"), unconditionally
promise to pay the Taiwan Semiconductor Manufacturing Co., Ltd. or its order the
sum of US Dollars One Million, Three Hundred, Eighty Thousand and no/cents
($1,380,000), plus interest calculated from the Due date stated herein to the
date of full payment at the rate of 10% per annum on any unpaid portion of the
principal amount stated herein, and said payment will be made at Dallas, Texas.
This Note shall be governed in all respects by the laws of the State of
California.
The Maker of this Note agrees to waive protests and notice of whatever kind.
Issue Date: April 17, 1997
Issue Place: Collin County,
City of Dallas, Texas
Maker: BENCHMARQ Microelectronics, Inc.
By: /s/ Xxxxxxx Xxxxx
-----------------
President and Chief Executive Officer
Maker's Address: 00000 Xxxxxxxxx Xxxxxxx
Xxxxxx, Xxxxx 00000
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