Amended* Equipment Acquisition Agreement *Reflects changes made by letter amendment dated August 22, 2007
CONFIDENTIAL
TREATMENT REQUESTED
Exhibit 10.29
Amended*
Equipment Acquisition Agreement
*Reflects
changes made by letter amendment dated August 22, 2007
Introduction
This
Amended Equipment Acquisition Agreement (this “Agreement”) is entered into by
and between California Micro Devices Corporation, a Delaware corporation
(“CMD”), and SPEL Semiconductor Limited, a public limited company incorporated
under the provisions of the Indian Companies Act, 1956 (“SPEL”), effective upon
the later of the dates (the “Effective Date”) that it is signed on behalf of
each party under Authorized Signatures
below.
Background
A.
SPEL
has been packaging and testing semiconductor devices for CMD (the “Services”).
The packaging involved has been primarily for TDFN packages and the parties
desire to expand the Services to include UDFN and uUDFN packages.
B.
SPEL
has requested that CMD purchase and consign to SPEL certain equipment in order
to help provide the infrastructure necessary to render increased amounts of
Services. In exchange, SPEL has agreed to provide CMD with lower
prices for the Services to repay the purchase price.
Agreement
Based
upon the facts and premises contained in the above
Background, and the mutual promises below, SPEL and CMD
hereby agree as follows:
0. Definitions.
0.1
“Packaging Process” means TDFN, UDFN, uUDFN, or other packaging for
semiconductors which uses the Equipment as defined in Section 1.3.
0.2 “Total
Equipment Cost” means the cost of all of the Equipment purchased on Schedule 1
as listed on Schedule 1 pursuant to Section 1.
0.3 “Consignment
Period” means that period of time from when the first piece of Equipment is
received by SPEL until the Total Equipment Cost has been paid pursuant to
Section 5 The Consignment Period can be terminated as provided in
Section 7.
1. Pricing
and the Equipment.
1.1.
The
prices listed on Schedule 3 under the heading SPEL Base shall be the mutually
agreed price at which SPEL typically offers the Services to its customers,
which
shall be no more than the price SPEL affords other customers with similar (or
lesser) volumes. The initial version of Schedule 3 contains the SPEL
Base prices as of the Effective Date. The parties shall get together
every ** months to review the SPEL Base prices and possibly revise the SPEL
Base
prices. The expectation of the parties is that over time the SPEL
Base prices will decline due to a corresponding decline in price of
commodities (e.g. gold and copper). However, CMD acknowledges that if the price
of commodities (e.g. gold and copper) should unexpectedly rise then the prices
for the Services may have to increase accordingly and SPEL agrees that such
commodity price increases are the only reason that the SPEL Base prices may
increase.
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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TREATMENT REQUESTED
1.2.
Schedule 3 will also be revised from time to time by the parties to add rows
corresponding to differing numbers of leads or pitches or differing Packaging
Processes.
1.3.
SPEL
has determined with CMD’s concurrence that the equipment to be subject to this
Agreement should comprise of those items listed on Schedule 1, either new or
used, with the estimated prices listed on Schedule 1. Though
estimated prices will remain the same, the number of items of each piece of
Equipment may vary depending on the type of Equipment purchased provided that
the Equipment purchased shall have a ** piece monthly
capacity. Within two weeks of the Effective Date, as CMD’s agent,
SPEL shall obtain firm price quotations, including length and scope of warranty
coverage (which SPEL shall ensure is available for consigned equipment) and
available delivery dates, to purchase the items listed on Schedule 1 with a
targeted delivery date of March or April 2007. The price shall
include the charges to deliver such equipment to SPEL’s location listed in
Schedule 2 (the “Facility”), along with any taxes and duties, whether imposed on
SPEL or CMD. CMD will review such quotations and if such quotations
differ from the estimates shown in Schedule 1 by more than 10% in the aggregate,
the parties shall negotiate mutually acceptable changes to Schedule 3 to
preserve the economics and shall revise Schedule 1 accordingly or else this
Agreement shall terminate. The equipment listed on the final Schedule
1 is referred to in this Agreement as the “Equipment”. Once the
parties have completed the negotiations of Schedules 1 and 3, then CMD shall
place purchase orders for the Equipment for delivery to the Facility as soon
as
possible. In this manner, CMD will consign to SPEL, and SPEL will
accept in consignment, the Equipment.
2.
Consignment of the Equipment.
2.1.
CMD
agrees to make available the Equipment to SPEL on a consignment basis at the
Facility during the Consignment Period for the use by SPEL solely in order
to
improve and support SPEL’s Services to CMD and for no other
purpose. The date that the Equipment vendor ships each particular
Equipment item to the Facility shall be its “Consignment Date”. In no
event during the Consignment Period may SPEL use the Equipment other than as
set
forth in this Section 2.1; thus for example, SPEL may not use the Equipment
to
manufacture, assemble, process, package, or test wafers for another customer
without CMD’s express, prior written consent.
2.2.
SPEL
will assist CMD in obtaining any import licenses and other approvals and permits
required for the importation of the Equipment and shall arrange the custom
clearance of the Equipment as importer. When obtaining the import
licenses, SPEL will inform the authorities that the Equipment will remain the
property of CMD indefinitely and shall arrange to the extent possible for CMD
to
be able to ship the Equipment elsewhere upon termination of this
Agreement.
2.3.
Along with the Equipment, CMD shall supply to SPEL technical documentation
from
the manufacturer relating to the installation and operation of the Equipment
in
the English language. SPEL shall use and operate the Equipment only
in accordance with the instructions as laid down in the documentation or as
otherwise given by CMD.
3.
Facility Preparation and Installation.
3.1.
SPEL
will prepare the Facility in accordance with the Equipment manufacturers’
requirements and will properly install the Equipment at the
Facility. The Equipment will be installed and fully operational no
later than July 1, 2007.
3.2.
CMD
reserves the right to inspect the Facility and to request SPEL to make
reasonable changes to the Facility to accommodate the Equipment.
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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TREATMENT REQUESTED
4.
Custody and Ownership; Obligations During Consignment
Period.
4.1.
During the Consignment Period, CMD shall keep the sole and full title to the
Equipment; thus, the Equipment shall remain the property of CMD.
4.2.
Risk
of loss or damage to, and custody of, the Equipment shall transfer to SPEL
immediately following when risk of loss passes from the vendor of the Equipment
to CMD. SPEL acknowledges the good quality of the Equipment upon
delivery to the Facility, unless SPEL notifies CMD within two weeks of receipt
of the Equipment. In such event, SPEL shall cooperate with CMD to
file appropriate documentation with the Equipment vendor in order to make a
claim.
4.3.
SPEL
shall comply with following obligations as to each item of Equipment until
the
expiration or termination of the Consignment Period:
(a)
SPEL
shall take all necessary steps to protect the Equipment and avoid the Equipment
being subject to any damage and to safeguard CMD’s property rights, including
without limitation intellectual property rights, in the Equipment.
(b)
SPEL
shall not sell, rent, lease, assign, donate, transfer, mortgage, or grant a
security interest in or allow a lien to exist with respect to, the Equipment,
or
any of SPEL’s right to possession or use of the Equipment, to any third party
under whatsoever conditions. Thus, the Equipment and SPEL’s rights to
use the Equipment under this Agreement shall be free from third party security
interest or lien.
(c)
SPEL
shall be responsible for any damage to the Equipment. Upon the
termination of the Consignment Period as defined in Section 7, SPEL shall return
the Equipment to CMD in the same condition it was in on the Consignment Date,
ordinary wear and tear excepted. Thus, for example, SPEL will be
responsible for any damage to the Equipment as a result of improper use,
negligence, gross negligence or willful acts or omissions, by SPEL or by its
employees. Moreover, SPEL shall be responsible for the
maintenance and repair of the Equipment and keeping the Equipment in good
operating condition.
(d)
The
Equipment shall not be transported from the Facility to any other location
without first having obtained CMD’s prior consent in writing;
(e)
SPEL
shall at its sole expense maintain insurance insuring the Equipment against
loss, theft, fire, and damage in an amount sufficient to cover the full value
of
the Equipment. SPEL shall provide CMD with all such copies of insurance, each
of
which shall name CMD as an additional insured and provide that the policy may
not be cancelled or not renewed except upon 30 days prior written notice to
CMD.
(f)
SPEL
will comply with all applicable laws, rules and regulations in exercising its
rights and performing its obligations under this Agreement. SPEL
shall pay all taxes imposed on the Equipment and its use including, without
limitation, VAT and personal property taxes, whether such taxes are imposed
on
CMD or SPEL.
(g)
SPEL
shall prominently label the Equipment as belonging to CMD and shall take
appropriate steps and make any necessary filings with the government to ensure
that the government and third parties know that the Equipment does not belong
to
SPEL and do not extend credit to SPEL on the basis of the
Equipment.
(h)
SPEL
agrees to make any and all appropriate public filings in order to inform the
public or government that the Equipment is the property of CMD and not SPEL
and
is merely on consignment to SPEL. SPEL agrees to provide CMD with a
copy of each such filing when made.
(i)
SPEL
shall perform Services using the Packaging Processes requested by CMD at the
prices shown under the heading “Base Price”on Schedule 3. SPEL
commits to make ** units per month capacity of Packaging Services available
to
CMD using the Equipment and shall provide turn-around time, testing and
quality control, and warranty for CMD that are comparable to or better than
that
provided to other customers of SPEL.
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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TREATMENT REQUESTED
5.
No payment.
In
view
of the fact that the Equipment is provided by CMD to SPEL to support SPEL’s
Services to CMD, SPEL and CMD agree that the Equipment shall be given on
consignment. Notwithstanding the foregoing, SPEL shall pay CMD
$58,200 prior to the last day of each month for 35 months beginning with
September, 2007. During August, 2010, SPEL shall pay CMD the
difference between the Total Equipment Cost and the cumulative amount previously
paid pursuant to the prior sentence..
6.
Liability Limitation and Disclaimer.
6.1.
CMD
shall not be liable for any damages or losses in connection with this Agreement
in excess of fifty US Dollars (US $50.00) and in particular CMD shall not be
responsible or liable for bodily injury or damage to property or other loss
sustained by third parties or SPEL which may arise in consequence of the use
of
the Equipment. In addition, in no event shall CMD be liable for any
indirect, special, incidental or consequential damages of any nature whatsoever,
including without limitation loss of profit and/or revenue.
6.2.
SPEL
shall defend, indemnify and hold CMD harmless from and against any and all
suits, claims, actions, proceedings, costs, damages, liabilities and expenses
(including without limitation reasonable attorneys’ fees) arising out of or
related to SPEL’s use of the Equipment, including without limitation damage or
personal injury arising from SPEL’s use of the Equipment, including substandard
Services. Notwithstanding the foregoing, this section 6.2 shall not apply to
damages or personal injury to customers or other users of CMD’s products which
arise due to their purchase or use of CMD products in which Services were a
part
of the manufacturing, assembly, or packaging process.
6.3. CMD
is providing the Equipment “AS IS” without warranties of any kind except those
provided by the Equipment vendor which CMD shall permit SPEL to assert on its
behalf during the Consignment Period. If the Consignment Period
expires rather than terminates, then CMD shall assign the warranties to
SPEL.
7.
Consignment Period
Expiration.
If
and
once the Consignment Period has expired (rather than terminated), CMD shall
transfer all right, title, and interest to the Equipment to
SPEL. Upon request, CMD will assist SPEL as reasonably requested so
that SPEL may take appropriate steps and make any necessary filings with the
government to ensure that the government and third parties know that the
Equipment no longer belongs to CMD.
8.
Agreement Term and Termination.
8.1.
This
Agreement shall become effective upon the Effective Date and shall expire
immediately after the Consignment Period expires unless earlier terminated
(1)
by either party upon ninety (90) days notice that it desires to terminate this
Agreement without cause for its convenience or (2) by either party pursuant
to
Section 8.2.
8.2.
In
the event of a material breach of the terms and conditions of this Agreement
by
either party, the other party shall have the right to terminate this Agreement
by notice in writing, if such breach or failure is not remedied by the breaching
party within thirty (30) days after written notice describing such breach has
been given by terminating party except that the cure period for payments due
under Section 5 shall be ten (10) days for the first breach and two (2) business
days for subsequent breaches..
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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CONFIDENTIAL
TREATMENT REQUESTED
8.3.
In
the event that CMD shall terminate this Agreement for cause or SPEL shall
terminate this Agreement without cause, then SPEL shall stop the use of the
Equipment and return the Equipment which is listed as test equipment to
CMD. CMD may if it desires inspect the Equipment at the Facility
before the return of the Equipment. SPEL shall pay for the cost of
returning the Equipment from SPEL to CMD, including without limitation, shipping
and insurance costs. As to the Equipment which is listed as assembly
equipment, CMD shall have the option of requesting that such Equipment be
shipped as CMD directs at its cost or to cause SPEL to purchase such Equipment
from CMD. The purchase price shall be equal to the original price of
such Equipment less an amount equal to the cumulative amount previously paid
under Section 5 times the ratio of the original cost of that assembly Equipment
being purchased to the original cost of all Equipment listed on Schedule
1.
8.4.
In
the event that SPEL shall terminate this Agreement for cause or CMD shall
terminate this Agreement without cause, then SPEL shall stop the use of the
Equipment and return the Equipment which is listed as test equipment to CMD
and
CMD shall owe SPEL an amount equal to the cumulative amount previously paid
under Section 5 times the ratio of the original cost of such test Equipment
to
the original cost of all Equipment listed on Schedule 1 plus, as to the
Equipment which is test equipment, the cost of replacement internal circuit
boards unless caused by SPEL’s negligence, accident, or failure of periodic
maintenance schedule provided that SPEL has informed CMD during the term of
the
Agreement whenever a replacement internal circuit board is required and its
cost. As to the Equipment which is listed as assembly equipment, SPEL
shall have the option of purchasing such Equipment from CMD or shipping such
Equipment as CMD directs at CMD’s cost. The purchase price shall be
equal to the original price of such Equipment less an amount equal to the
cumulative amount previously paid under Section 5 times the ratio of
the original cost of that assembly Equipment being purchased to the original
cost of all Equipment listed on Schedule 1. CMD may if it desires
inspect the Equipment at the Facility before the return of the
Equipment. CMD has to pay for the cost of returning such Equipment
from SPEL to CMD, including without limitation, shipping and insurance
costs. SPEL will obtain CMD’s prior approval and will xxxx CMD for
the actual cost of these services.
8.5.
The
rights and obligations of the parties under Sections 6, 8, and 9 shall survive
any expiration or termination of this Agreement and the rights and obligations
of the parties under Section 7 shall survive any expiration of this
Agreement.
9.
Miscellaneous.
9.1.
This
Agreement shall be governed by and construed in accordance with the laws of
California, excluding its conflict of law principles. This Agreement
has been made in English language and all documents and communications between
the Parties hereto shall be in English language.
9.2.
The
terms and conditions contained in this Agreement and its Annexes constitute
the
entire agreement between the parties with respect of its subject matter and
shall supersede any and all prior communications, representations, agreements
and/or understandings, either oral or written, between the parties with respect
to such subject matter. No agreement or understanding varying or
extending the terms and conditions contained in this Agreement and its Annexes
shall be binding upon either party hereto unless made in writing and signed
by
duly authorized representatives of the parties.
9.3.
The
parties shall exercise all commercially reasonable efforts to settle between
themselves in an amicable way any dispute which may arise out of or in
connection with this Agreement. Should a dispute nonetheless arise,
the parties desire to avoid the burdens and delay that often accompany
traditional litigation to the maximum extent possible and, therefore, agree
that
any dispute, controversy or claim concerning or
relating to this Agreement and all connected and related
matters whatsoever (a "Dispute"), shall be resolved exclusively by
referral to arbitration. The arbitration proceedings shall be conducted in
English and in accordance with the rules and provisions of the International
Centre for Dispute Resolution (“ICDR”). The venue of the arbitration
shall be San Jose, California.
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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TREATMENT REQUESTED
The
arbitration shall be conducted by a person nominated jointly by the parties
within ten (10) business days or else chosen in accordance with the rules of
the
ICDR. The arbitration shall be documents only, evidence through affidavits,
"fast track" arbitration except that a party may if it chooses offer oral
testimony. The arbitrator shall have the right to pass interim awards
and issue directions but shall not act in any award, direction, or decision
beyond what a court could. Any arbitration award shall be binding and
final, except as otherwise provided by California law, and judgment may be
entered upon it in accordance with applicable law in any court having
jurisdiction. Notwithstanding any of the foregoing, CMD may request
injunctive and/or equitable relief either from the arbitrator or from a court
of
competent jurisdiction in order to protect its rights or property, including
without limitation for breach of the use restrictions under Section 2.1 and
the
various obligations under Section 4.3.
9.4.
If
any provision of this Agreement is held invalid, illegal or unenforceable,
such
provision will be reformed only to the extent necessary and in such a manner
to
effect the original intention of the parties; all remaining provisions continue
in full force and effect. Any failure by either party to strictly
enforce any provision of this Agreement will not operate as a waiver of that
provision or any subsequent default or breach of the same or a different kind.
Notices under this Agreement must be in writing and will be deemed given when
delivered personally, or by email or facsimile (with confirmation of receipt)
or
by conventional mail (registered or certified, postage prepaid with return
receipt requested). Notices will be addressed to the parties at the
addresses appearing below, but each party may change the address by written
notice in accordance with this paragraph. This Agreement will be
binding upon, and inure to the benefit of, the parties and their respective
successors and assigns.
9.5.
Either party is excused from performance and shall not be liable for any delay
in delivery or non-delivery or performance, in whole or in part, caused by
the
occurrence of any contingency beyond the control of the parties including,
but
not limited to, delay in obtaining required clearances, fires, civil
disobedience, riots, floods, shortage of power & fuel, war, and
other acts of God. If the force majeure event lasts
for more than four (4) months, then the other party may terminate this Agreement
for cause.
9.6.
This
Agreement may be executed by facsimile and in counterparts, each of which shall
be deemed to be an original and all of which together shall be deemed to be
one
and the same instrument.
Authorized
Signatures
In
order
to bind the parties to this Equipment Acquisition Agreement, their duly
authorized representatives have signed their names below on the dates
indicated.
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Spel
Semiconductor Limited (SPEL)
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California
Micro Devices Corporation (CMD)
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By:
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/S/ XXX XXXXXXXX
____________________________
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By:
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/S/
XXXXXX X. XXXXXXXXX
_______________________________
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Xxx
Xxxxxxxx
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Xxxxxx
X. Xxxxxxxxx
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Title:
Chief Executive Officer
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Title:
President and Chief Executive Officer (Principal Executive
Officer)
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Date
Executed: September 6, 2007*
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Date
Executed: August 22, 2007*
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Address:
0 XXXX Xxxxxxxxxx Xxxxxx
XX
Xxxxx, (Xxxxxxx) 603 209,
India
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Address:
000 X. XxXxxxxx Xxxx, #000
Xxxxxxxx,
XX 00000
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*
January
24, 2007 for initial agreement
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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TREATMENT REQUESTED
Schedule
1
List
of Equipment and Cost
A. Initial
Estimate
1. UDFN
Assembly
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Die
Attach (2)
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$ |
50,000
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Wirebonders
(7)
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$ |
300,000
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||
Auto
Mold/ Die set (1)
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$ |
450,000
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Saw
Singulation (1)
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$ |
200,000
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2. uUDFN
Assembly
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Screen
Printer (1)
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$ |
150,000
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Die
Attach (1)
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$ |
200,000
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3. UDFN/uUDFN
Test
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Eagle
Tester (1)
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$ |
250,000
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Tesec
Strip Handler (1) and Tape and Reel (1)
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$ |
600,000
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Total
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$ |
2,200,000
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B. Final
Quotations
1. UDFN
Assembly
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Die
Attach (2)
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$ | ** | ||
Wirebonders
(7)
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$ | ** | ||
Auto
Mold/ Die set (1)
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$ | ** | ||
Saw
Singulation (1)
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$ | ** | ||
2. uUDFN
Assembly
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||||
Screen
Printer (1)
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$ | ** | ||
Die
Attach (1)
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$ | ** | ||
3. UDFN/uUDFN
Test
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||||
Eagle
Tester (1)
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$ | ** | ||
Tesec
Strip Handler (1) and Tape and Reel (1)
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$ | ** | ||
Total
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$ | ** | ||
Schedule
2
Facility
Location
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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Schedule
3
Pricing
Package | Pitch | SPEL Base | ||
8
lead TDFN
|
0.4
mm
|
**
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||
12
lead TDFN
|
0.4
mm
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**
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||
16
lead TDFN
|
0.4
mm
|
**
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||
8
lead TDFN
|
0.5
mm
|
**
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||
12
lead TDFN
|
0.5
mm
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**
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||
16
lead TDFN
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0.5
mm
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**
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||
8
lead UDFN
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0.4
mm
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**
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||
12
lead UDFN
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0.4
mm
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**
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||
16
lead UDFN
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0.4
mm
|
**
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||
8
lead UDFN
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0.5
mm
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**
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||
12
lead UDFN
|
0.5
mm
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**
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||
16
lead UDFN
|
0.5
mm
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**
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||
6
lead uUDFN
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0.4
mm
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**
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||
6
lead uUDFN
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0.5
mm
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**
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**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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CONFIDENTIAL
TREATMENT REQUESTED
Post-Consignment
Services Pricing Agreement
Introduction
This
Post-Consignment Services Pricing Agreement (this “Agreement”) is entered into
by and between California Micro Devices Corporation, a Delaware corporation
(“CMD”), and SPEL Semiconductor Limited, a public limited company incorporated
under the provisions of the Indian Companies Act, 1956 (“SPEL”), effective upon
the date (the “Effective Date”) of either (1) the expiration of the Equipment
Acquisition Agreement entered into by and between CMD and SPEL effective
January
__, 2007 (the “Equipment Acquisition Agreement”) or (2) the termination of the
Equipment Acquisition Agreement without cause by SPEL or with cause by
CMD. Should the Equipment Acquisition Agreement instead be terminated
without cause by CMD or with cause by SPEL, then this Agreement shall never
become effective.
Background
A.
SPEL
has been packaging and testing semiconductor devices for CMD (the
“Services”). The packaging involved has been primarily for TDFN
packages and the parties desire to expand the Services to include UDFN and
uUDFN
packages.
B.
CMD
will be purchasing and consigning to SPEL certain equipment listed on Schedule
1
(the “Equipment”), either new or used, in order to help provide the
infrastructure necessary for SPEL to render increased amounts of Services
as set
forth in the Equipment Acquisition Agreement. In exchange, SPEL has
agreed to provide CMD with lower prices for the Services under this
Agreement once SPEL has provided CMD with price concessions equal to the
purchase price of the Equipment as set forth in the Equipment Acquisition
Agreement.
Agreement
Based
upon the facts and premises contained in the above
Background, and the mutual promises below, SPEL and
CMD hereby agree as follows:
0.
Definitions.
0.1
“Packaging Process” means TDFN, UDFN, uUDFN, or other packaging for
semiconductors which uses the Equipment.
0.2
“SPEL
Ownership Period” means that period of time starting on the Effective Date until
the expiration or termination of this Agreement.
1.
Pricing.
1.1.
The
prices listed on Schedule 2 under the heading SPEL Base shall be the mutually
agreed price at which SPEL typically offers the Services to its
customers, which shall be not greater than the price SPEL affords other
customers with similar (or lesser) volumes, and the Post Amortization prices
are
calculated as a difference from the SPEL Base price. The initial
version of Schedule 2 contains the SPEL Base prices as of the date of execution
of this Agreement. The parties shall get together at the start of the
SPEL Ownership Period and every ** months thereafter to review the SPEL Base
prices and possibly revise the SPEL Base prices, in which case the Post
Amortization prices will be revised accordingly to retain the same differential
from the SPEL Base prices as on the initial Schedule 2. The
expectation of the parties is that over time the SPEL Base prices will decline
due to a corresponding decline in price of commodities (e.g. gold and
copper). However, CMD acknowledges that if the price of commodities
(e.g. gold and copper) should unexpectedly rise then the prices for the Services
may have to increase accordingly and SPEL agrees that such commodity price
increases are the only reason that the SPEL Base prices may
increase.
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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9
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CONFIDENTIAL
TREATMENT REQUESTED
1.2. Schedule
2 will also be revised from time to time by the parties to add rows
corresponding to differing numbers of leads or pitches or differing Packaging
Processes. In the case of TDFN Packaging Processes the Post
Amortization prices for the new rows are anticipated to be **% of the SPEL
Base price while for non-TDFN Packaging Processes, the Post Amortization
prices
for the new rows are anticipated to be **% of the SPEL Base
price.
2.
Liability Limitation and Disclaimer.
2.1. CMD
shall not be liable for any damages or losses in connection with this Agreement
in excess of fifty US Dollars (US $50.00). In addition, in no event
shall CMD be liable for any indirect, special, incidental or consequential
damages of any nature whatsoever, including without limitation loss of profit
and/or revenue.
2.2.
SPEL
shall defend, indemnify and hold CMD harmless from and against any and all
suits, claims, actions, proceedings, costs, damages, liabilities and expenses
(including without limitation reasonable attorneys’ fees) arising out of or
related to SPEL’s use of the Equipment, including without limitation damage or
personal injury arising from SPEL’s use of the Equipment, including substandard
Services. Notwithstanding the foregoing, this section 6.2 shall not apply
to
damages or personal injury to customers or other users of CMD’s products which
arise due to their purchase or use of CMD products in which Services were
a part
of the manufacturing, assembly, or packaging process.
3.
SPEL Obligations During the SPEL Ownership
Period.
3.1.
|
SPEL
shall comply with following obligations during the SPEL Ownership
Period:
|
(a)
SPEL
shall take all necessary steps to protect the Equipment and avoid the Equipment
being subject to any damage. SPEL shall be responsible for the maintenance
and
repair of the Equipment and keeping the Equipment in good operating
condition.
(b)
SPEL
may sell the Equipment, or any of SPEL’s rights to possession or use of the
Equipment, provided that SPEL has first provided CMD with written assurance
that
SPEL has other equipment which SPEL would commit to employ in order to have
the
capacity to render the Services to CMD on five million pieces per month at
the
Post Amortization price.
(c) SPEL
may relocate the Equipment from the Facility provided that SPEL has first
provided CMD with written assurance that the Equipment will still be available
to provide the Services to CMD, or else that SPEL had other equipment that
SPEL
would substitute for the Equipment in order to have the capacity to render
the
Services to CMD on five million pieces per month at the Post Amortization
price.
(d)
SPEL
shall at its sole expense maintain insurance insuring the Equipment against
loss, theft, fire, and damage in an amount sufficient to cover the full value
of
the Equipment.
(e)
SPEL
will comply with all applicable laws, rules and regulations in exercising
its
rights and performing its obligations under this Agreement. SPEL
shall pay all taxes imposed on the Equipment and transfer to SPEL and its
use
including, without limitation, VAT and personal property taxes, whether such
taxes are imposed on CMD or SPEL.
(f)
SPEL
shall give priority to CMD’s needs over those of its other customers in SPEL’s
use of the Equipment.
(g)
SPEL
shall perform Services using the Packaging Processes requested by CMD at
the
prices shown under the heading “Post Amortization” on Schedule
2. SPEL commits to make ** units per month capacity of Packaging
Services available to CMD and shall provide turn-around time, testing and
quality control, and warranty for CMD that are comparable to or better than
that
provided to other customers of SPEL.
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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10
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CONFIDENTIAL
TREATMENT REQUESTED
4.
Agreement Term and Termination.
4.1.
This
Agreement shall become effective upon the Effective Date and shall
expire on **, unless earlier terminated (1) by either party upon
ninety (90) days notice that it desires to terminate this Agreement without
cause for its convenience, (2) by either party pursuant to Section 4.2, or
(3) pursuant to Section 4.3.
4.2.
In
the event of a material breach of the terms and conditions of this Agreement
by
either party, the other party shall have the right to terminate this Agreement
by notice in writing, if such breach or failure is not remedied by the breaching
party within thirty (30) days after written notice describing such breach
has
been given by terminating party.
4.3.
This
Agreement shall be deemed terminated on the day after the Effective Date
if the
Equipment Acquisition Agreement was terminated without cause by SPEL or with
cause by CMD.
4.4.
In
the event that CMD shall terminate this Agreement for cause, SPEL shall
terminate this Agreement without cause, or this Agreement is deemed terminated
pursuant to Section 4.3, then SPEL shall pay to CMD damages per month equal
to
the spread between SPEL Base price and Post Amortization price for ** units
until this Agreement would otherwise have expired.
4.5.
In
the event that SPEL shall terminate this Agreement for cause or CMD shall
terminate this Agreement without cause, then SPEL’s obligations under Section
3.1 shall cease.
4.6.
The
rights and obligations of the parties under Sections 2, 4, and 5 shall survive
any expiration or termination of this Agreement.
5.
Miscellaneous.
5.1.
This
Agreement shall be governed by and construed in accordance with the laws
of
California, excluding its conflict of law principles. This Agreement has
been made in English language and all documents and communications between
the
Parties hereto shall be in English language.
5.2.
The
terms and conditions contained in this Agreement and its Schedules constitute
the entire agreement between the parties with respect of its subject matter
and
shall supersede any and all prior communications, representations, agreements
and/or understandings, either oral or written, between the parties with respect
to such subject matter. No agreement or understanding varying or
extending the terms and conditions contained in this Agreement and its Annexes
shall be binding upon either party hereto unless made in writing and signed
by
duly authorized representatives of the parties.
5.3. The
parties shall exercise all commercially reasonable efforts to settle between
themselves in an amicable way any dispute which may arise out of or in
connection with this Agreement. Should a dispute nonetheless arise,
the parties desire to avoid the burdens and delay that often accompany
traditional litigation to the maximum extent possible and, therefore, agree
that
any dispute, controversy or claim concerning or
relating to this Agreement and all connected and
related matters whatsoever (a “Dispute”), shall be resolved exclusively by
referral to arbitration. The arbitration proceedings shall be conducted in
English and in accordance with the rules and provisions of the International
Centre for Dispute Resolution (“ICDR”). The venue of the arbitration shall be
San Jose, California.
The
arbitration shall be conducted by a person nominated jointly by the parties
within ten (10) business days or else chosen in accordance with the rules
of the
ICDR. The arbitration shall be documents only, evidence through affidavits,
“fast track” arbitration except that a party may if it chooses offer oral
testimony. The arbitrator shall have the right to pass interim awards
and issue directions but shall not act in any award, direction, or decision
beyond what a court could. Any arbitration award shall be binding and
final, except as otherwise provided by California law, and judgment may be
entered upon it in accordance with applicable law in any court having
jurisdiction.
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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11
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CONFIDENTIAL
TREATMENT REQUESTED
5.4.
If
any provision of this Agreement is held invalid, illegal or unenforceable,
such
provision will be reformed only to the extent necessary and in such a manner
to
effect the original intention of the parties; all remaining provisions continue
in full force and effect. Any failure by either party to strictly
enforce any provision of this Agreement will not operate as a waiver of that
provision or any subsequent default or breach of the same or a different
kind.
Notices under this Agreement must be in writing and will be deemed given
when
delivered personally, or by email or facsimile (with confirmation of receipt)
or
by conventional mail (registered or certified, postage prepaid with return
receipt requested). Notices will be addressed to the parties at the
addresses appearing below, but each party may change the address by written
notice in accordance with this paragraph. This Agreement will be
binding upon, and inure to the benefit of, the parties and their respective
successors and assigns.
5.5
Either party is excused from performance and shall not be liable for any
delay
in delivery or non-delivery or performance, in whole or in part, caused by
the
occurrence of any contingency beyond the control of the parties including,
but
not limited to, delay in obtaining required clearances, fires, civil
disobedience, riots, floods, shortage of power & fuel, war, and other acts
of God. The term of this Agreement shall be extended by the amount of
time that the force majeure condition lasts; provided, however, that if the
force majeure event impacts SPEL and lasts for more than four (4) months,
then
CMD may request that SPEL pay to CMD any proceeds it receives from insurance
covering the Equipment in which case this Agreement would expire and SPEL
shall
pay such proceeds to CMD within ten (10) days of when received by
SPEL.
5.6
This
Agreement may be executed by facsimile and in counterparts, each of which
shall
be deemed to be an original and all of which together shall be deemed to
be one
and the same instrument.
Authorized
Signatures
In
order
to bind the parties to this Post-Consignment Services Pricing Agreement,
their
duly authorized representatives have signed their names below on the dates
indicated.
|
Spel
Semiconductor Limited (SPEL)
|
California
Micro Devices Corporation (CMD)
|
||||
By:
|
/S/ XXX XXXXXXXX
____________________________
|
|
By:
|
|
/S/
XXXXXX X. XXXXXXXXX
_______________________________
|
Xxx
Xxxxxxxx
|
|
|
|
Xxxxxx
X. Xxxxxxxxx
|
|
Title:
Chief Executive Officer
|
|
|
|
Title:
President and Chief Executive Officer (Principal Executive
Officer)
|
|
|
|
|
|
||
Date
Executed: January 24, 2007
|
Date
Executed: January 24, 2007
|
||||
Address:
0 XXXX Xxxxxxxxxx Xxxxxx
XX
Xxxxx, (Xxxxxxx) 603 209,
India
|
|
|
|
Address:
000 X. XxXxxxxx Xxxx, #000
Xxxxxxxx,
XX 00000
|
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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12
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CONFIDENTIAL
TREATMENT REQUESTED
Schedule
1
List
of Equipment
1. UDFN
Assembly
Die
Attach (2)
Wirebonders
(7)
Auto
Mold/ Die set
(1)
Saw
Singulation
(1)
2. uUDFN
Assembly
Screen
Printer
(1)
Die
Attach (1)
3. UDFN/uUDFN
Test
Eagle
Tester (1)
Tesec
Strip Handler
(1)
Tape
and Reel (1)
Parenthetical
indicates number of units of equipment.
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
-
13
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CONFIDENTIAL
TREATMENT REQUESTED
Schedule
2
Pricing
Package
|
Pitch
|
SPEL
Base
|
Post
Amortization
|
||||||
8
lead TDFN
|
0.4
mm
|
**
|
**
|
||||||
12
lead TDFN
|
0.4
mm
|
**
|
**
|
||||||
16
lead TDFN
|
0.4
mm
|
**
|
**
|
||||||
8
lead TDFN
|
0.5
mm
|
**
|
**
|
||||||
12
lead TDFN
|
0.5
mm
|
**
|
**
|
||||||
16
lead TDFN
|
0.5
mm
|
**
|
**
|
||||||
8
lead UDFN
|
0.4
mm
|
**
|
**
|
||||||
12
lead UDFN
|
0.4
mm
|
**
|
**
|
||||||
16
lead UDFN
|
0.4
mm
|
**
|
**
|
||||||
8
lead UDFN
|
0.5
mm
|
**
|
**
|
||||||
12
lead UDFN
|
0.5
mm
|
**
|
**
|
||||||
16
lead UDFN
|
0.5
mm
|
**
|
**
|
||||||
6
lead uUDFN
|
0.4
mm
|
**
|
**
|
||||||
6
lead uUDFN
|
0.5
mm
|
**
|
**
|
**
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS
OF
THIS AGREEMENT AND THE CONFIDENTIAL PORTION HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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