EXHIBIT 10.05
XXXXXXXXX ASSEMBLY SERVICES AGREEMENT
THIS ASSEMBLY SERVICES AGREEMENT ("Agreement") is dated and made effective
this 11th day of March, 1997 (the "Effective Date") by and between NATIONAL
SEMICONDUCTOR CORPORATION, a Delaware corporation, having its principal place of
business at 0000 Xxxxxxxxxxxxx Xxxxx, Xxxxx Xxxxx, Xxxxxxxxxx 00000-0000
("National") and [XXXXXXXXX SEMICONDUCTOR CORPORATION], a Delaware corporation,
having its principal place of business at 000 Xxxxxxx Xxxxxx, Xxxxx Xxxxxxxx,
Xxxxx 00000 ("Fairchild"), National and/or Fairchild may be referred to herein
as a "Party" or the "Parties" as the case may require.
WITNESSETH:
WHEREAS, the Parties have entered into a certain Asset Purchase Agreement
(hereinafter referred to as the "Purchase Agreement") under which Xxxxxxxxx is
acquiring certain of the assets of National's Logic, Memory and Discrete Power
and Signal Technologies Business Units as historically conducted and accounted
for (including Flash Memory, but excluding Public Networks, Programmable
Products and Mil/Aero Logic Products) (the "Business"); and
WHEREAS, pursuant to the transactions contemplated in the Purchase
Agreement, Fairchild is acquiring National's manufacturing facilities in South
Portland, Maine (excluding the eight-inch fab and related facilities), West
Jordan, Utah, Penang, Malaysia and Cebu, the Philippines; and
WHEREAS, after the closing of the transactions contemplated by the
Purchase Agreement Fairchild will own or lease and operate the Facilities; and
WHEREAS, National has been performing assembly, test and other back-end
services at the Facilities; and
WHEREAS, National is conveying to Xxxxxxxxx certain intellectual property
rights pursuant to the Technology Licensing and Transfer Agreement between
National and Xxxxxxxxx, of even date herewith; and
WHEREAS, National and Xxxxxxxxx desire to enter into an agreement under
which Xxxxxxxxx will continue to provide certain services to National following
the closing of the transactions contemplated by the Purchase Agreement; and
WHEREAS, National and Xxxxxxxxx recognize that the prices for assembly and
test services to be provided by Xxxxxxxxx to National as set forth herein are
determined based on the collateral transactions and ongoing relationship between
the Parties as expressed in the Purchase Agreement, Revenue Side Letter between
National and Xxxxxxxxx of even date herewith (the
"Revenue Side Letter") and the other Operating Agreements (as defined in
Paragraph 9.1); and
WHEREAS, the execution and delivery of this Agreement is a condition
precedent to the closing of the transactions contemplated by the Purchase
Agreement.
NOW, THEREFORE, in furtherance of the foregoing premises and in
consideration of the mutual movements and obligations hereinafter set forth, the
Parties hereto, intending to be legally bound hereby, do agree as follows:
1.0 DEFINITIONS
1.1 "Best Efforts" shall require that the obligated Party make a
diligent, reasonable and good faith effort to accomplish the
applicable objective. Such obligation, however, does not
require any material expenditure of funds or the incurrence of
any material liability on the part of the obligated Party,
which expenditure or liability is unreasonable in light of the
related objective, nor does it require that the obligated
Party act in a manner which would otherwise be contrary to
prudent business judgment or normal commercial practices in
order to accomplish the objective. The fact that the objective
is not actually accomplished is no indication that the
obligated Party did not in fact utilize its Best Efforts in
attempting to accomplish the objective.
1.2 "Confidential Information" shall have the meaning set forth in
Paragraph 16.1 below.
1.3 "Devices" shall mean National integrated circuits to be
assembled and/or tested by Fairchild hereunder.
1.4 "Die" shall mean the silicon die material, consigned by
National to Fairchild in wafer form, from which Devices are
assembled.
1.5 "Effective Date" shall mean the date first set forth above.
1.6 "Facilities" shall mean the existing assembly facilities
located at Penang, Malaysia and Cebu, the Philippines,
transferred to Fairchild from National
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pursuant to the Purchase Agreement.
1.7 "Fairchild Assured Capacity" shall mean the capacity of
assembly and/or test services that Fairchild agrees to supply
National pursuant to Section 7 below.
1.8 "Fairchild" shall mean Xxxxxxxxx Semiconductor Corporation and
its Subsidiaries.
1.9 "Mix" shall mean the allocation within a forecast by package
type and pin count.
1.10 "National" shall mean National Semiconductor Corporation and
its Subsidiaries.
1.11 "Specifications" shall mean National drawings, criteria and
other documented specifications in effect as of the Effective
Date, including, but not limited to, build procedures, buy-off
criteria, quality and reliability parameters, material
specifications, marking specifications, test settings, program
specifications, load board schematics, facilities and
environmental SOP's, handling requirements, lot and/or die
traceability and processes for manufacturing Devices.
1.12 "Subsidiary" shall mean any corporation, partnership, joint
venture or similar entity more than fifty percent (50%) owned
or controlled by a Party hereto, provided that any such entity
shall no longer be deemed a Subsidiary after such ownership or
control ceases to exist.
1.13 "Technology Licensing and Transfer Agreement" shall mean the
agreement of even date herewith between the Parties under
which National is licensing and transferring certain
intellectual property rights to Xxxxxxxxx.
2.0 INTELLECTUAL PROPERTY
2.1 The provisions of the Technology Licensing and Transfer
Agreement will govern all issues related to the respective
intellectual property rights of the Parties hereunder, to
include but not be limited to, use rights, ownership rights
and indemnification
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obligations.
2.2 All assembly and test services shall take place at the
Facilities. Xxxxxxxxx shall not transfer any National-owned
intellectual property or other National technical information
outside of the Facilities or to any other site, other than as
may be permitted under the Technology Licensing and Transfer
Agreement.
3.0 SHIPPING AND BUILD ORDER REQUIREMENTS
3.1 Xxxxxxxxx shall provide backgrind, assembly and test services
hereunder in accordance with the Specifications. Such services
shall be performed at those Facilities at which they have
historically been performed.
3.2 National will, at "No Charge", deliver and consign to
Xxxxxxxxx at the Facilities its electrically probed wafers or
wafers requiring wafer probe. Any reject die on said wafers
shall be ink marked or identified by National in a manner
acceptable for use with Xxxxxxxxx'x pattern recognition
equipment. Wafers and other materials shall be packed in
accordance with the Specifications.
3.3 Xxxxxxxxx shall be responsible for forecasting and ordering
lead frames, bonding wire, molding compound and other raw
materials required for assembly in sufficient quantities and
with sufficient lead times to meet its obligations under the
Xxxxxxxxx Assured Capacity. Xxxxxxxxx shall also be
responsible for maintenance and replacement costs associated
with manufacturing tools and equipment (e.g., mold die, trim
and form die, lead frame tooling), except for lead frame
tooling which is currently owned by and used exclusively for
National.
3.4 National shall supply an appropriate bonding diagram and test
program (if applicable) for each Device to be assembled per
the Specifications.
3.5 Xxxxxxxxx hereby agrees to verify the Die count and advise
National of any variance greater than one percent (1%).
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3.6 National will provide Xxxxxxxxx with a "Lot Traveler" in a
format identical to that in effect on the Effective Date and
outlined in Exhibit A hereto for the first six (6) months
after the Effective Date. After that period of time, Xxxxxxxxx
may utilize its own Traveler, provided its form has previously
been approved in writing by National, which approval shall not
be unreasonably withheld.
3.7 Xxxxxxxxx shall provide National with the following
manufacturing data in a format and pursuant to criteria and
procedures agreed to by the parties, on a monthly basis:
(a) WIP from sealing through final assembly, including
finished goods;
(b) Test yield and wafer sort yield results (if applicable);
(c) Shipping activity (description, quantity, ship date);
(d) Acknowledgment of National Die shipments as
well as such other information which
National may reasonably request from time
to time; and
(e) Cycle time (if requested by National).
3.8 Xxxxxxxxx shall deliver completed lots to National, packaged
in accordance with the Specifications, with the assembly run
card enclosed for each assembly lot (kit). Future traceability
for a lot (kit) shall be based solely on the run card and
shall be the responsibility of National. The assembly run card
shall show the yield for each yield point in the assembly
process. By mutual agreement of the Parties, traceability may
instead be software based, so long as such records are
accessible to both Parties.
4.0 PACKAGE/PROCESS CHANGES NOTIFICATION
4.1 If Xxxxxxxxx proposes to make any change affecting the
assembly processes, materials and/or suppliers, to include,
but not be limited to, lead frame design, lead frame material,
die attach material,
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wire bond material, molding compound, lead plating process or
plating material, test programs or assembly procedures
affecting the Devices, Xxxxxxxxx will notify National of the
intended change in accordance with Xxxxxxxxx'x change
procedures then in effect. If the proposed change is
unacceptable to National, National and Xxxxxxxxx shall work
together in efforts to resolve the problem. If during the
first thirty-nine (39) fiscal periods of this Agreement the
Parties are unable to resolve the problem, Xxxxxxxxx shall not
make the proposed change. After the first 39 fiscal periods of
this Agreement, if the Parties are unable to resolve the
problem, Xxxxxxxxx shall have the right to make such change
upon the provision of ninety (90) days prior written notice to
National. Notwithstanding the foregoing, however, Xxxxxxxxx
shall in no event manufacture Devices other than in strict
accordance with the Specifications, or any amendments thereto,
without the prior written consent of National.
4.2 National shall provide at least fifteen (15) days prior
written notice to Xxxxxxxxx of any proposed change in Die
design, layout modification, fabrication process, test
programs or other changes which may impact upon Xxxxxxxxx'x
processing, handling or assembly of Devices. Xxxxxxxxx shall
not be responsible for any assembly or test loss incurred as a
result of National's failure to provide timely notification of
such change.
4.3 National reserves the right to make changes to the
Specifications that reflect improvements, developments or
other technically desired changes in the Devices. National
shall notify Xxxxxxxxx of such requested change orders and
Xxxxxxxxx shall respond within thirty (30) working days
regarding the feasibility, schedule and anticipated costs of
implementing such change orders. Once the Parties have agreed
in writing to the engineering changes, schedule and prices
thereof, Xxxxxxxxx shall promptly take all measures required
to incorporate such change orders into the Devices. Xxxxxxxxx
shall have the right to renegotiate the price and/or its
capacity commitments hereunder if such changes will have an
adverse effect on Xxxxxxxxx'x assembly or test capacity.
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5.0 DEVICE ACCEPTANCE/QUALIFICATION/RAMP UP
5.1 Should Xxxxxxxxx agree to add new package types requested by
National, Xxxxxxxxx shall utilize its Best Efforts to complete
qualification assembly of new package types as soon as
possible, including qualification lots. National shall
reimburse Xxxxxxxxx for the full costs of equipment, tooling
and one time start up costs required to manufacture new
packages that Xxxxxxxxx will exclusively use for National,
otherwise such costs will be shared.
5.2 National shall be responsible for specifying and performing
any qualification testing deemed necessary.
5.3 Xxxxxxxxx reserves the right to refuse assembly of any new
Devices which violate Xxxxxxxxx internal design or processing
requirements that are introduced after the Effective Date.
5.4 Xxxxxxxxx shall provide National with a preliminary ramp-up
schedule, which may be subject to subsequent reduction by
Xxxxxxxxx in the event unforeseen problems are encountered by
Xxxxxxxxx with yields, process, capacity support,
quality/reliability or other product or process features.
Xxxxxxxxx shall immediately notify National in writing of the
necessity of any such reductions.
6.0 INSPECTION, ACCEPTANCE AND WARRANTY
6.1 For those Devices not tested by Xxxxxxxxx, National shall
conduct incoming acceptance tests within ten (10) days after
delivery at its test facility. Upon completion of such tests,
National shall promptly report any shortage, damage or
defective Devices in any shipment. In the case of defective
Devices found by National to exceed applicable AQL and/or PPM
Limits in effect as of the Effective Date, or as subsequently
agreed in writing by the Parties, National shall promptly ship
samples of defective Devices to Xxxxxxxxx for verification. If
such testing demonstrates that the shipment failed to meet the
relevant Specifications due to Xxxxxxxxx workmanship or
materials, National may at its option
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either:
(a) deduct the defective Devices' purchase price from
Xxxxxxxxx'x invoice, in which event National shall, if
requested by Xxxxxxxxx, return to Xxxxxxxxx the damaged
or defective Devices at Xxxxxxxxx'x risk and expense,
(b) return the damaged or defective Devices to Xxxxxxxxx, at
Xxxxxxxxx'x risk and expense, for credit, or
(c) scrap the defective Devices at Xxxxxxxxx'x request for
credit.
6.2 Xxxxxxxxx warrants that the services provided to National
hereunder shall conform to all applicable Specifications for
assembly and/or test and shall be free from defects in
material and Xxxxxxxxx'x workmanship. Such warranty, however,
shall not apply to the design or operation of the National
supplied Die incorporated in the Devices. This warranty is
limited to a period of one (1) year from the date of delivery
to National. If, during the one year period:
(i) Xxxxxxxxx is notified promptly upon discovery in writing
by a detailed description of any such defect in any
Device; and
(ii) National receives a return material authorization number
from Xxxxxxxxx and returns such Device to the applicable
Facility at National's expense for inspection; and
(iii) Xxxxxxxxx'x examination reveals that the Device is
indeed defective and does not meet the applicable
Specification or is defective in materials or
Xxxxxxxxx'x workmanship and such problems are not caused
by accident, abuse, misuse, neglect, improper storage,
handling, packaging or installation, repair, alteration
or improper testing or use by someone other than
Xxxxxxxxx
then, within a reasonable time, Xxxxxxxxx shall credit
National for such defective Device. Xxxxxxxxx shall reimburse
National for the transportation charges paid by National in
returning such de-
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fective Devices to Xxxxxxxxx. The performance of this warranty shall
not act to extend the one (1) year warranty period for any Device(s)
repaired or replaced beyond that period applicable to such
Devices(s) as originally delivered.
6.3 THE FOREGOING WARRANTY CONSTITUTES XXXXXXXXX'X EXCLUSIVE
LIABILITY, AND NATIONAL'S EXCLUSIVE REMEDY, FOR ANY BREACH OF
WARRANTY. XXXXXXXXX MAKES AND NATIONAL RECEIVES NO WARRANTIES
OR CONDITIONS ON THE SERVICES PERFORMED HEREUNDER, EXPRESS,
IMPLIED, STATUTORY OR OTHERWISE, AND XXXXXXXXX SPECIFICALLY
DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.
7.0 CAPACITY; VOLUME COMMITMENTS; PRODUCTION PLANNING
7.1 All planning herein will be done under National's accounting
calendar which currently divides its fiscal year into four (4)
equal fiscal quarters, each of which consists of three (3)
fiscal periods. The first two (2) periods of each quarter are
of four (4) weeks in duration and the third period is of (5)
weeks duration.
7.2 Two (2) weeks prior to the end of each National fiscal period,
or as otherwise agreed by the Parties, National will provide
to Xxxxxxxxx a baseline quantity of assembly starts, set forth
in terms of product family, package and pin count, for the
next eight (8) fiscal periods (the "Capacity Request").
National's initial Capacity Request and Xxxxxxxxx'x Assured
Capacity response formats are set forth herein at Exhibit B.
7.3 Each fiscal period, National may make changes to the Capacity
Request in accordance with the following table, provided that
the maximum Capacity Request for each package and pin count
module does not exceed National's share of each package and
pin count module's installed equipment capacity. Any changes
outside those permitted under the following table must be by
mutual consent of the Parties.
Fiscal Periods in
the Capacity Request Permitted Changes
-------------------- -----------------
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Period 1 Fixed
Period 2 +/-10%
Period 3 +/-20%
Period 4 +/-40%
Period 5 +/-40%
Period 6 +/-40%
Period 7 +/-40%
Period 8 +/-40%
7.4 National's share of a package and pin count module's installed
equipment capacity will equal the previous Xxxxxxxxx Assured
Capacity for that module, plus that percentage of any excess
capacity available in the package and pin count module equal
to National's percentage of the currently utilized capacity in
said module. Installed equipment capacity by package and pin
count module is set forth herein at Exhibit C.
7.5 One (1) work week after receipt of the Capacity Request,
Xxxxxxxxx shall provide National with a response to such
Capacity Request, the "Xxxxxxxxx Assured Capacity". The
Xxxxxxxxx Assured Capacity must guarantee the amount requested
in National's latest Capacity Request, provided that any
changes to National's latest Capacity Request are within the
limits of Paragraph 7.3. Xxxxxxxxx shall utilize its Best
Efforts to comply with any requests by National for capacity
above those which are permitted under Paragraph 7.3. In any
case, Xxxxxxxxx shall be obligated hereunder to provide
National with the assembly starts guaranteed in the Xxxxxxxxx
Assured Capacity response. The initial Xxxxxxxxx Assured
Capacity response shall be the last response provided prior to
the Effective Date. Set forth below are two examples of the
foregoing:
Example #1 The new Capacity Request is less than
the last Xxxxxxxxx Assured Capacity
response.
Period A B C D E F G H
------ - - - - - - - -
Last Capacity Request 100 100 100 100 100 100 100 100
Last Xxxxxxxxx Assured Capacity 100 100 100 100 100 100 100 100
New Capacity Request 100 90 80 60 60 60 60 60
New Xxxxxxxxx Assured Capacity 100 90 80 60 60 60 60 60
Example #2 The new Capacity Request is greater
than the last Xxxxxxxxx Assured Capacity
response.
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Period A B C D E F G H
------ - - - - - - - -
Last Capacity Request 100 100 100 100 100 100 100 100
Last Xxxxxxxxx Assured Capacity 100 100 100 100 100 100 100 100
New Capacity Request 100 110 120 140 140 140 140 140
New Xxxxxxxxx Assured Capacity 100 110 120 140 140 140 140 140
7.6 The timetable for the rolling eight fiscal period Capacity
Request, the Xxxxxxxxx Assured Capacity response, purchase
order release and detailed Device level assembly starts
request for the next fiscal period are set forth in Exhibit D
hereto.
8.0 PURCHASE ORDERS
8.1 All purchases and sales between Xxxxxxxxx and National shall
be initiated by National's issuance of written purchase orders
sent by either first class mail or facsimile. By written
agreement of the Parties, purchase orders may also be sent and
acknowledged by electronic data exchange or other mutually
satisfactory system. Such "blanket" purchase orders shall be
issued once per fiscal quarter for assembly starts three (3)
fiscal periods in the future. They shall state the product
family, package and pin count, and shipping and invoicing
instructions. Fairchild shall accept purchase orders through a
written or electronic acknowledgment. Within a reasonable time
after receipt of National's detailed Device level assembly
starts request for the next fiscal period, Xxxxxxxxx shall
provide National with a Device delivery schedule either on a
weekly basis as assembly is started or for the assembly starts
for the entire fiscal period, as the Parties may agree in
writing. The purchase orders may utilize the first three (3)
fiscal periods forecast in the eight period rolling forecast
supplied pursuant to Section 7, as the embodiment of the
purchase order for specifying the assembly starts by package
and pin count.
8.2 In the event of any conflict between the terms and conditions
of this Agreement and either Party's purchase order,
acknowledgment, or similar forms, priority shall be determined
as follows:
(a) typewritten or handwritten terms on the face of a
written purchase order, acknowledgment
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or similar document or in the main body of an electronic
equivalent which have been specifically accepted in
writing by the other Party's Program Manager;
(b) the terms of this Agreement;
(c) preprinted terms incorporated in the purchase order,
acknowledgment or similar document.
8.3 Consistent with standard practices of issuing specific Device
level details of part numbers to be assembled on a weekly or
periodic basis, National may unilaterally change the part
number to be manufactured, provided that Xxxxxxxxx agrees that
the change does not negatively impact Xxxxxxxxx'x loadings and
provided further that there is no change in the package and
pin count to be used. A change that will negatively impact
loading or alter the package and pin count may only be
directed upon Xxxxxxxxx'x written agreement, which shall
utilize its Best Efforts to comply with such requested change.
The specific part number detail shall be submitted by first
class mail or facsimile. By written agreement of the Parties,
specific part number detail may also be sent by electronic
data exchange, or other mutually satisfactory system.
8.4 National shall request delivery dates which are consistent
with Xxxxxxxxx'x reasonable lead times for each Device as
indicated at the time National's purchase order is placed.
Notwithstanding the foregoing, Xxxxxxxxx shall utilize its
Best Efforts to accommodate requests by National for quick
turnarounds or "hot lots", which includes prototype lots. Hot
lot cycle times shall be a 50% reduction of standard cycle
time with a $2000.00 lot charge.
8.5 Xxxxxxxxx may manufacture lots of any size which satisfy the
requirements of effective manufacturing. However, National
must place order for full flow and prototype products in
minimum lot sizes of three thousand (3,000) Devices.
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9.0 PRICING AND PAYMENT
9.1 The Parties hereby acknowledge that, as part of the collateral
transactions contemplated under the Purchase Agreement and
ongoing relationship between the Parties, they have entered
into the Revenue Side Letter under which National agrees to
provide a minimum revenue of Three Hundred Thirty Million
Dollars ($330,000,000.00) to Xxxxxxxxx during the first
thirty-nine (39) fiscal periods after the Effective Date.
National shall discharge its obligations under the Revenue
Side Letter by purchasing goods and services under this
Agreement, a corresponding Xxxxxxxxx Foundry Services
Agreement, and a Mil/Aero Wafer and Services Agreement of even
date herewith (collectively the "Operating Agreements"). Set
forth herein at Exhibit G is the forecasted volume of assembly
services that National will purchase from Xxxxxxxxx during the
aforementioned thirty-nine fiscal periods (the "Forecast
Volumes"). The Forecast Volumes are for pricing purposes under
this Section 9 only and may vary in magnitude and mix in
practice, whereupon the prices applicable to the revised
magnitude and mix may also vary. The Forecast Volumes will be
reviewed and updated by the Parties every fiscal period and
shall be consistent with the principles of manufacturing set
forth in Exhibit H.
9.2 Set forth in Exhibit G hereto are the prices which National
shall pay to Xxxxxxxxx for backgrind, standard assembly and
test services hereunder during the first six (6) fiscal
periods of this Agreement. The prices in Exhibit G for fiscal
periods 7 through 39 are for information purposes only and are
based on the Parties' best estimate of forecast volumes and
projected costs.
9.3 The prices which National shall pay to Xxxxxxxxx for
background, standard assembly and test services hereunder
after the first six (6) fiscal periods of this Agreement are
set forth herein as Exhibit K. The pricing methodology to be
followed hereafter will depend on the Facility at which the
services will be provided.
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9.4 For purposes of Exhibit K, National, or any "Big 6" accounting
firm designated by National, shall have reasonable rights to
audit not more than twice each fiscal year the books and
records of Xxxxxxxxx relevant to the pricing terms of this
Agreement in order to come to agreement with Xxxxxxxxx with
regard to Xxxxxxxxx'x actual manufacturing costs.
9.5 Prices are quoted and shall be paid in U.S. Dollars. Such
prices are on an FOB ship point basis. Payment terms are net
thirty (30) from date of invoice. Miscellaneous services may
be invoiced separately.
9.6 National shall pay, in addition to the prices quoted or
invoiced, the amount of any freight, insurance, special
handling and duties. National shall also pay all sales, use,
excise or other similar tax applicable to the sale of goods or
provision of services covered by this Agreement, or National
shall supply Xxxxxxxxx with an appropriate tax exemption
certificate.
9.7 Quoted prices are based on the use of standard Xxxxxxxxx
processes and on the assumption that National's product is
readily accommodated by Xxxxxxxxx'x assembly/handling
equipment and processes. Any changes that must be made thereto
shall result in additional charges to National that are
mutually agreed to by the Parties.
9.8 Unless otherwise noted, quoted prices for assembly shall
include packing, marking and testing in accordance with the
Specifications for Devices that are in production as of the
Effective Date. For new Devices added after the Effective
Date, pricing will reflect specifications and any special
requirements for the Devices such as multi-insertion testing.
9.9 Should yields below historical levels be directly attributable
to Die, materials, processes or documentation provided by
National, then National shall be charged for the full price of
Devices begun in assembly, including handling, incurred by
Xxxxxxxxx in processing such units.
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9.10 Should National terminate any order prior to process
completion, National shall be charged a prorated portion of
the full price of such Device subject to a negotiated
adjustment, based on the process termination point, including
handling incurred by Xxxxxxxxx in processing the total
quantity started in assembly.
9.11 Xxxxxxxxx may invoice National for complete or partial lots
(kits).
9.12 National shall in no event be required to pay prices in excess
of those charged by Xxxxxxxxx for other third party customers,
for substantially similar services sold on substantially
similar terms (e.g., volume, payment terms, manufacturing
criteria, contractual commitments vs. spot buys, etc.). In the
event Xxxxxxxxx desires to perform such services for other
third party customers at such lower prices, Xxxxxxxxx shall
immediately notify National and National shall begin receiving
the benefit of such lower price at the same time as such other
third party customer. This Paragraph 9.12 shall not apply to
the prices to be paid by National hereunder for the first
twelve (12) fiscal periods of this Agreement, or if National
fails to honor its fixed commitments under Section 7 and to
the extent that such sales by Xxxxxxxxx to third party
customers are only made in an attempt to make up for any
underutilization of capacity thereby caused by National.
9.13 For assembly and test services not reflected in Exhibit G,
terms shall be on an individual purchase order basis at prices
to be negotiated by the Parties using a methodology based on
that set forth in Exhibit K.
10.0 DELIVERY; RESCHEDULING AND CANCELLATION
10.1 Xxxxxxxxx shall make reasonable and diligent efforts to
deliver assembled and/or tested Devices on the delivery dates
published to National. Any shipment made within +/- 3 days of
the shipment date(s) published to National shall constitute
timely shipment,
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10.2 All Devices delivered pursuant to the terms of this Agreement
shall be suitably packed for shipment in National's specified
containers, marked for shipment to National's address set
forth in the applicable purchase order and delivered to a
carrier or forwarding agent chosen by National. Xxxxxxxxx
shall not be responsible for delays in shipment resulting from
National's failure to supply Xxxxxxxxx with an adequate supply
of National's specified containers. Should National fail to
designate a carrier, forwarding agent or type of conveyance,
Xxxxxxxxx shall make such designation in conformance with its
standard shipping practices. Shipment will be F.O.B. shipping
point, at which time risk of loss and title shall pass to
National. Shipments will be subject to incoming inspection as
set forth in Paragraph 6.1 above.
10.3 National may, with Xxxxxxxxx'x prior written consent,
reschedule delivery of any order of assembled and/or tested
Devices once each fiscal period.
10.4 Subject to the provisions of Section 7 hereof, National may
cancel any purchase order at least two (2) weeks prior to the
commencement of work by Xxxxxxxxx without charge, provided
that National reimburses Xxxxxxxxx for the cost of any unique
raw materials purchased after such purchase order has been
placed, and provided further that Xxxxxxxxx had provided
National with a listing of materials it considers unique.
10.5 As of 12:01 A.M. on the Effective Date, National will consign
to Xxxxxxxxx all Devices located at the Facilities upon which
National had previously commenced services but which have not
yet been completed, which Devices are termed work in process
in the Purchase Agreement and which are not purchased by
Xxxxxxxxx thereunder. Unless expressly directed in writing by
National otherwise, Xxxxxxxxx shall commence performing
services hereunder to bring such Devices to a normal state of
completion. National shall pay Xxxxxxxxx for the accumulated
additional processing costs, plus a twenty-five percent
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(25%) xxxx up, for the additional servicing taking place after
the Effective Date. The provisions of Sections 6 and 11 hereof
shall specifically apply to all such Devices.
11.0 QUALITY AND YIELD PROGRAMS
11.1 Xxxxxxxxx shall maintain continuous cost, quality and yield
enhancement programs throughout the term of this Agreement.
11.2 Xxxxxxxxx shall support National quality programs and shall
supply to National reports and/or manufacturing data in
standard Xxxxxxxxx format that are in effect and which are
required as of the Effective Date.
11.3 Xxxxxxxxx hereby warrants that the Facilities currently are,
and will remain throughout the term of this Agreement, ISO9000
certified.
12.0 ON-SITE INSPECTION AND INFORMATION
12.1 Xxxxxxxxx shall allow National and/or National's customers to
visit and evaluate the Facilities during normal business hours
as part of established source inspection programs, it being
understood and agreed between National and Xxxxxxxxx that
National must obtain the concurrence of Xxxxxxxxx for the
scheduling of all such visits, which such concurrence shall
not be unreasonably withheld. It is anticipated that these
visits will not occur more than once per quarter on average.
12.2 Upon National's written request, Xxxxxxxxx will provide
National with process control information, to include but not
be limited to: SPC, yield and other detailed assembly and test
quality and reliability data and associated analyses required
to support National and National's customers quality and
reliability programs. Except for exigent circumstances, such
requests shall not be made more than twice per year for a
given category of information.
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12.3 Upon National's request and Xxxxxxxxx'x agreement, which shall
not be unreasonably withheld, Xxxxxxxxx shall provide National
engineers with access to the Facilities to the extent
necessary to perform yield improvement and product management
updates relevant to this Agreement. National's engineers will
comply with all applicable Xxxxxxxxx regulations in force at
the Facilities and National hereby agrees to hold Xxxxxxxxx
harmless for any damages or liability caused by any such
National engineer which are attributable to: (i) the
negligence or willful malfeasance of such engineer and (ii)
any failure to comply with Xxxxxxxxx'x regulations in force at
the Facilities or with applicable law.
13.0 REPORTS AND COMMUNICATIONS
13.1 Each Party hereby appoints a Program Manager whose
responsibilities shall include acting as a focal point for the
technical and commercial discussions between them related to
the subject matter of this Agreement, to include monitoring
within his or her respective company the distribution of
Confidential Information received from the other Party and
assisting in the prevention of the unauthorized disclosure of
Confidential Information within the company and to third
parties. The Program Managers shall also be responsible for
maintaining pertinent records arranging such conferences,
visits, reports and other conditions as are necessary to
fulfill the terms and conditions of this Agreement. The names,
addresses and telephone numbers of the Program Managers will
be communicated between the Parties from time to time.
14.0 EXPORT CONTROL
14.1 The Parties acknowledge that each must comply with all rules
and laws of the United States government relating to
restrictions on export. Each Party agrees to use its Best
Efforts to obtain any export licenses, letters of assurance or
other documents necessary with respect to this Agreement.
-18-
14.2 Each Party agrees to comply fully with United States export
laws and regulations, assuring the other Party that, unless
prior authorization is obtained from the competent United
States government agency, the receiving Party does not intend
and shall not knowingly export or re-export, directly or
indirectly, any wafers, Die, Devices, technology or technical
information received hereunder, that would be in contravention
of any laws and regulations published by any United States
government agency.
15.0 TERM AND TERMINATION
15.1 The term of this Agreement shall be thirty-nine (39) fiscal
periods from the Effective Date; provided, however, that the
Parties shall not less than eight (8) fiscal periods prior to
the end of such thirty-ninth (39th) fiscal period determine in
good faith a ramp-down schedule of production under this
Agreement so as to minimize disruption to both Parties at the
termination of this Agreement. If the Parties are unable to
agree on the terms governing a ramp-down, National shall be
allowed to reduce its purchase commitment by not more than
twenty percent (20%) per fiscal quarter after the initial
thirty-nine (39) fiscal period term of this Agreement.
National will provide Xxxxxxxxx with not less than ninety (90)
days prior written notice of any such reduction.
15.2 This Agreement may be terminated, in whole or in part, by one
Party sending a written notice to the other Party of the
termination of this Agreement, which notice specifies the
reason for the termination, upon the happening of any one or
more of the following events:
(a) the other Party is the subject of a petition filed in a
bankruptcy court of competent jurisdiction, whether
voluntary or involuntary, which petition in the event of
an involuntary petition is not dismissed within sixty
(60) days; if a receiver or trustee is appointed for all
or a substantial portion of the assets of the other
Party; or if the
-19-
other Party makes an assignment for the benefit of its
creditors; or
(b) the other Party fails to perform substantially any
material covenant or obligation, or breaches any
material representation or warranty provided for herein;
provided, however, that no right of termination shall
arise hereunder until sixty (60) days after receipt of
written notice by the Party who has failed to perform
from the other Party, specifying the failure of
performance, and said failure having not been remedied
or cured during said sixty (60) day period.
15.3 Upon termination of this Agreement, all rights granted
hereunder shall immediately terminate and each Party shall
return to the other Party any property belonging to the other
Party which is in its possession, except that Xxxxxxxxx may
continue to retain and use any rights or property belonging to
National solely for the period necessary for it to finish
manufacturing the currently forecasted Xxxxxxxxx Assured
Capacity and/or complete any production ramp-down activity.
Nothing in this Section 15 is intended to relieve either Party
of any liability for any payment or other obligation existing
at the time of termination.
15.4 The provisions of Section 2, 14, 16 and Paragraphs 6.2, 6.3,
17.5 and 17.8 shall survive the termination of this Agreement
for any reason.
16.0 CONFIDENTIALITY
16.1 For purposes of this Agreement, "Confidential Information"
shall mean all proprietary information, including National
and/or Xxxxxxxxx trade secrets relating to the subject matter
of this Agreement disclosed by one of the Parties to the other
Party in written and/or graphic form and originally designated
in writing by the disclosing Party as Confidential Information
or by words of similar import, or, if disclosed orally,
summarized and confirmed in writing by the disclosing Party
within thirty (30) days
-20-
after said oral disclosure, that the orally disclosed
information is Confidential Information.
16.2 Except as may otherwise be provided in the Technology
Licensing and Transfer Agreement, each Party agrees that it
will not use in any way for its own account, or for the
account of any third party, nor disclose to any third party
except pursuant to this Agreement, any Confidential
Information revealed to it by the other Party. Each Party
shall take every reasonable precaution to protect the
confidentiality of said information. Each Party shall use the
same standard of care in protecting the Confidential
Information of the other Party as it normally uses in
protecting its own trade secrets and proprietary information.
16.3 Notwithstanding any other provision of this Agreement, no
information received by a Party hereunder shall be
Confidential Information if said information is or becomes:
(a) published or otherwise made available to the public
other than by a breach of this Agreement;
(b) furnished to a Party by a third party without
restriction on its dissemination;
(c) approved for release in writing by the Party designating
said information as Confidential Information;
(d) known to, or independently developed by, the Party
receiving Confidential Information hereunder without
reference to or use of said Confidential Information; or
(e) disclosed to a third party by the Party transferring
said information hereunder without restricting its
subsequent disclosure and use by said third party.
16.4 In the event that either Party either determines on the advice
of its counsel that it is required to disclose any information
pursuant to appli-
-21-
cable law or receives any demand under lawful process to
disclose or provide information of the other Party that is
subject to the confidentiality provisions hereof, such Party
shall notify the other Party prior to disclosing and providing
such information and shall cooperate at the expense of the
requesting Party in seeking any reasonable protective
arrangements requested by such other Party. Subject to the
foregoing, the Party that receives such request may thereafter
disclose or provide information to the extent required by such
law (as so advised by counsel) or by lawful process.
17.0 GENERAL
17.1 AMENDMENT: This Agreement may be modified only by a written
document signed by duly authorized representatives of the
Parties.
17.2 FORCE MAJEURE: A Party shall not be liable for a failure or
delay in the performance of any of its obligations under this
Agreement where such failure or delay is the result of fire,
flood, or other natural disaster, act of God, war, embargo,
riot, labor dispute, unavailability of raw materials or
utilities (provided that such unavailability is not caused by
the actions or inactions of the Party claiming force majeure),
or the intervention of any government authority, providing
that the Party failing in or delaying its performance
immediately notifies the other Party of its inability to
perform and states the reason for such inability.
17.3 ASSIGNMENT: This Agreement may not be assigned by any Party
hereto without the written consent of the other Party;
provided that Xxxxxxxxx may assign its rights but not its
obligations hereunder as collateral security to any bona fide
financial institution engaged in acquisition financing in the
ordinary course providing financing to consummate the
transactions contemplated by the Purchase Agreement or any
bona fide financial institution engaged in acquisition
financing in the ordinary course through whom such financing
is refunded,
-22-
replaced, or refinanced and any of the foregoing financial
institutions may assign such rights in connection with a sale
of Xxxxxxxxx or the Business in the form then being conducted
by Xxxxxxxxx substantially as an entirety. Subject to the
foregoing, all of the terms and provisions of this Agreement
shall be binding upon, and inure to the benefit of, and shall
be enforceable by, the respective successors and assigns of
the Parties hereto.
17.4 COUNTERPARTS: This Agreement may be executed simultaneously in
two or more counterparts, each of which shall be deemed an
original and all of which together shall constitute but one
and the same instrument.
17.5 CHOICE OF LAW: This Agreement, and the rights and obligations
of the Parties hereto, shall be interpreted and governed in
accordance with the laws of the State of California, without
giving effect to its conflicts of law provisions.
17.6 WAIVER: Should either of the Parties fail to exercise or
enforce any provision of this Agreement such failure shall not
be construed as constituting a waiver or a continuing waiver
of its rights to enforce such provision or right or any other
provision or right. Should either of the Parties waive any
provision or right under this Agreement, such waiver shall not
be construed as constituting a waiver of any other provision
or right.
17.7 SEVERABILITY: If any provision of this Agreement or the
application thereof to any situation or circumstance shall be
invalid or unenforceable, the remainder of this Agreement
shall not be affected, and each remaining provision shall be
valid and enforceable to the fullest extent.
17.8 LIMITATION OF LIABILITY: IN NO EVENT SHALL EITHER PARTY BE
LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL
DAMAGES RESULTING FROM THE OTHER PARTY'S PERFORMANCE OR
FAILURE TO PERFORM UNDER THIS AGREEMENT, OR THE FURNISHING,
PERFORMANCE, OR USE OF ANY GOODS OR SERVICES SOLD PURSUANT
HERETO, WHETHER DUE TO BREACH OF
-23-
CONTRACT, BREACH OR WARRANTY, NEGLIGENCE OR OTHERWISE,
REGARDLESS OF WHETHER THE NONPERFORMING PARTY WAS ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES OR NOT.
17.9 EFFECT OF HEADINGS: The headings and sub-headings contained
herein are for information purposes only and shall have no
effect upon the intended purpose or interpretation of the
provisions of this Agreement.
17.10 INTEGRATION: The agreement of the Parties, which is composed
of this Agreement and the Exhibits hereto and the documents
referred to herein, constitutes the entire agreement and
understanding between the Parties with respect to the subject
matter of this Agreement and integrates all prior discussions
and proposals (whether oral or written) between them related
to the subject matter hereof.
17.11 PUBLIC ANNOUNCEMENT: Prior to the closing of the transactions
contemplated under the Purchase Agreement, neither Xxxxxxxxx
nor National shall, without the approval of the other Party
hereto, make any press release or other public announcement
concerning the terms of the transactions contemplated by this
Agreement, except as and to the extent that any such Party
shall be so obligated by law, in which case the Party shall
use its Best Efforts to advise the other Party thereof and the
Parties shall use their Best Efforts to cause a mutually
agreeable release or announcement to be issued; provided that
the foregoing shall not preclude communications or disclosures
necessary to (a) implement the provisions of this Agreement or
(b) comply with accounting, securities laws and Securities and
Exchange Commission disclosure obligations. Xxxxxxxxx shall
provide National with a reasonable opportunity to review and
comment on any references to National made by Xxxxxxxxx (and
shall not include any such references to National without the
written consent of National, which consent shall not be
unreasonably withheld or delayed) in any written materials
that are intended to be filed with the Securities and Exchange
Commission in connection with obtaining financing
-24-
required to effect the transactions contemplated in connection
with the Purchase Agreement or intended to be distributed to
prospective purchasers pursuant to an offering made under Rule
144A promulgated under the Securities Act of 1933 in
connection with obtaining such financing.
17.12 NO PARTNERSHIP OR AGENCY CREATED: Nothing contained herein or
done pursuant to this Agreement shall constitute the Parties
as entering upon a joint venture or partnership, or shall
constitute either Party the agent for the other Party for any
purpose or in any sense whatsoever.
17.13 BINDING EFFECT: This Agreement and the rights and obligations
hereunder shall be binding upon and inure to the benefit of
the Parties hereto and to their respective successors and
assigns.
17.14 NOTICES: All notices, requests, demands and other
communications which are required or may be given under this
Agreement shall be in writing and shall be deemed to have been
duly given when received if personally delivered; when
transmitted if transmitted by telecopy, electronic or digital
transmission method; the day after it is sent, if sent for
next day delivery to a domestic address by a recognized
overnight delivery service (e.g., Federal Express); and upon
receipt, if sent by certified or registered mail, return
receipt requested. In each case notice shall be sent to:
National: National Semiconductor Corporation
0000 Xxxxxxxxxxxxx Xxxxx
X.X. Xxx 00000
M/S 00-000
Xxxxx Xxxxx, XX 00000-0000
Attn: General Counsel
FAX: (000) 000-0000
Fairchild: Xxxxxxxxx Semiconductor Corporation
MS01-00 (General Counsel)
000 Xxxxxxx Xxxxxx
Xxxxx Xxxxxxxx, XX 00000
FAX: (000) 000-0000
or to such other place as such Party may designate as
-25-
to itself by written notice to the other Party.
IN WITNESS WHEREOF, the Parties have had this Agreement executed by their
respective duty authorized officers on the day and date first written above. The
persons signing warrant that they are duly authorized to sign for and on behalf
of the respective Parties.
NATIONAL SEMICONDUCTOR CORPORATION
By: /s/ Xxxx X. Xxxxx III
--------------------------------
Title: Senior Vice President
XXXXXXXXX SEMICONDUCTOR CORPORATION
By: /s/ Xxxxxx X. Xxxxxx
--------------------------------
Title:Executive Vice President, CFO
-26-
EXHIBIT A
WKS ASSEMBLY/TEST EASY FLOW INSTRUCTION DOCUMENT
PAGE :1
DATE: 96-12-20
Lot No.:
NN4788F019
ORDER/LOT NO: NN4788-F-01-9 ORD TYPE B PRIORITY 7
NSID: 74VHC138MTCX SPEC: - S/O RV:
PROD LINE: 02FL08 PKG CODE: N-MTCO-016 PF: 8P
LOT PREFIX:
CUSTOMER:
PROCESS OPTION: SOIC * FULL RAIL * 2500
BUILD SHEET ID: 74VHC138MTC - 01 STARTS QTY: 5423
BS REV: A BS DRWG SIZE : EBS BS DIE-STEP REV: M STARTS DATE: 97310
SALES ORDER REF:
SHIP TO DEST - (LOC/DIV/DEP) --- -> IL023500 PLANT SCH ST. DATE:
NEXT AREA LOC: LOC: IL DEPT: 3500 MIC: BG
DEC:
----------- DIE PTV INFO ----------
MFG FLOW: 3 ETA DUE: WW31-0 PTV: 45376 PTV ITEM: 001
4 ETA WW31-0 DIV/DEPT: 02-3100 MCC : DC
5 ETB WW31-4 RACK NO: STD LOT QTY: 56452
6 CEA WW32-0 SI CONTROL NO.: 97JKEP01N003D001
COMMITED QTY: 5423
BIN READ (ME): QTY: 0
SOURCE LOC: EP PARENT LOT: SHPT #:
SPECIAL INSTRUCTIONS:
CUSTOMER DELIVERY DATE 97/32/2
XXXX OF MATERIALS/DUTY & TRACEABILITY INFOR (FOR RELEASE ORDER)
PM NSPN: 74VHC138 -M1A3006T STEP M
SI CONTROL NO: 97JKEP01N003D001 DIE 1330.00X 1330.00/MC
SIZE/UM:
CUS CON NO: 97JKEP01N003D001 DIE RUN 15 ORIG: US
NO:
KK DESCRIPTION: FRAME,TSSOP,16L,2SQ,CU,MAT,ETCH,AP4AG4AG (OPT 06)
KK STK NO: 052655 FRM LOT#: -------------------------------------------------------
-------------------------------------------------------
MARKING INSTRUCTIONS:
2 DIGIT D/C: P69 4DIGIT D/C: P9652 DIE RUN CODE: AB
CARRIER #/L-BOX #:
-------------- --------------- -------------- -------------
PDS SPCL INST:
PDS LONG DESC:
REF #: TS1310 $NP69AB
PKGCD:N-MTC0-016 V138
------------------------------------------------------------------------------------------------ ------------------------------
CARRIER# CARRIER# CARRIER# MOUNT SAW
------------------------------------------------------------------------------------------------ ------------------------------
DIE ATTACH LEAD BOND 3RD OPT CASSETTE
------------------------------------------------------------------------------------------------ ------------------------------
E/NO MAG STRIP MC E/NO MAG STRIP MC E/NO MAGA STRIP MCC FRM# FRM# FRM# FRM#
------------------------------------------------------------------------------------------------ ------------------------------
1 1 1
------------------------------------------------------------------------------------------------ ------------------------------
2 2 2
------------------------------------------------------------------------------------------------ ------------------------------
3 3 3
------------------------------------------------------------------------------------------------ ------------------------------
4 4 4
------------------------------------------------------------------------------------------------ ------------------------------
5 5 5
------------------------------------------------------------------------------------------------ ------------------------------
6 6 6
------------------------------------------------------------------------------------------------ ------------------------------
7 7 7
------------------------------------------------------------------------------------------------ ------------------------------
8 8 8
------------------------------------------------------------------------------------------------ ------------------------------
9 9 9 3/OPT
------------------------------------------------------------------------------------------------ ------------------------------
10 10 10 8 STRIPS
------------------------------------------------------------------------------------------------ ------------------------------
11 11 11 GROSS QTY
------------------------------------------------------------------------------------------------ ------------------------------
12 12 12 DA BLUE
------------------------------------------------------------------------------------------------ ------------------------------
13 13 13 S/O REJ
------------------------------------------------------------------------------------------------ ------------------------------
14 14 14 QTY OUT
------------------------------------------------------------------------------------------------ ------------------------------
15 15 15
------------------------------------------------------------------------------------------------ ------------------------------
16 16 16
------------------------------------------------------------------------------------------------ ------------------------------
17 17 17
------------------------------------------------------------------------------------------------ ------------------------------
18 18 18
------------------------------------------------------------------------------------------------ ------------------------------
19 19 19
------------------------------------------------------------------------------------------------ ------------------------------
20 20 20
------------------------------------------------------------------------------------------------ ------------------------------
21 21 21 POST PLATE
------------------------------------------------------------------------------------------------ ------------------------------
22 22 22 POS 1 2 3 4
------------------------------------------------------------------------------------------------ ------------------------------
23 23 23 RACK #
------------------------------------------------------------------------------------------------ ------------------------------
24 24 24 STRUP POS
------------------------------------------------------------------------------------------------ ------------------------------
25 25 25 COMBO POS
------------------------------------------------------------------------------------------------ ------------------------------
26 26 26 POS 5 6 7 8
------------------------------------------------------------------------------------------------ ------------------------------
27 27 27 RACK 8
------------------------------------------------------------------------------------------------ ------------------------------
28 28 28 STRIP POS
------------------------------------------------------------------------------------------------ ------------------------------
COMBO POS
------------------------------
------------------------------------------------------------------------------------------------ ------------------------------
LOT TRACEABILITY IDENTIFICATION FOI
------------------------------------------------------------------------------------------------ ------------------------------
OPERATION MAG # OF
------------------------------------------------------------------------------------------------ ------------------------------
TRAY QTY REMARKS
------------------------------------------------------------------------------------------------ ------------------------------
F/S FULL
------------------------------------------------------------------------------------------------ ------------------------------
HALF
------------------------------------------------------------------------------------------------ ------------------------------
DEJUNK TOTAL
------------------------------------------------------------------------------------------------ ------------------------------
------------------------------------------------------------------------------------------------ ------------------------------
HONING
------------------------------------------------------------------------------------------------ ------------------------------
------------------------------------------------------------------------------------------------ ------------------------------
XXXX
------------------------------------------------------------------------------------------------ ------------------------------
------------------------------------------------------------------------------------------------ ------------------------------
------------------------------------------------------------------------------------------------
MOLD XXXX CURE
------------------------------------------------------------------------------------------------
OVEN # TEMP CURE TIME TIME IN WW IN E/NO-S TIME OUT WW OUT ACT T-OUT
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TRIM AND FORM
------------------------------------------------------------------------------------------------
TMF TAM TNF TAM EPI
TROLLEY TROLLEY VAR
MKE # #
------------------------------------------------------------------------------------------------
NO. OF TRAY
------------------------------------------------------------------------------------------------
GROSS UNITS
------------------------------------------------------------------------------------------------
REJECTS
------------------------------------------------------------------------------------------------
VARIANCE
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
EOL EPI REJECTS
------------------------------------------------------------------------------------------------
INCOMP VOIDS MISP OTHERS DEJUNK HONING XXXX VAR TOTAL
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
HON M/C COMBO STRIPS REMARKS
------------------------------------------------------------------------------------------------
F/S DEJUNK HONING XXXX
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
ORDER/LOT NO: NN4788F019 NSPN: 74VHC138MTCX PAGE : 3
DATE: 96-12-2
PACK INSTRUCITONS TEMPLATE
PACK INSTRUCTIONS-> HTB = IMM
MTC16 MOLDED TSSOP, JEDEC, 4.4MM BODY WIDTH, 16 LD,
LVL ALT STOCK# DESCRIPTION PACK UNITS LABEL CAU MST BEO
IMM 017983 REEL, PLASTIC, EMPTY, A/S, 13" DIA 12MM 2500 F63TNR Y
TAPE
053044 TAPE, S/D, EMBOSSED, 12MM, TSSOP 1
4/16, ADV
025360 TAPE, COVER, S/D, 12MM CAVITY
051035 LABEL, NSC LOGO, ESD, SELF ADHESIVE,
65MM X 70MM
A 045189 LABEL, NSC LOGO, ESD, PULL STRENGTH, 2
1/8" X 2 1/2"
IN1 001826 BOX, TRF1-1, TUCKED TOP, 13 7/8" X 13 1 2500 F63TNR
3/8"x1 3/8", 150LB
COMMENTS:
REV DATE: 08/29/94 REV NBR: 00 PACKTID: M20746
XXXXX/XXX 0 XX0000-X-00-0 00XXX000XXXX - 00XX00 XXXX0000 PAGE: 2
DATE: 96-12
OPN TYP OUT QTY E/NO/SHIFT WWD/S FLOW INSTRUCTIONS
------------------------------------------------------------------------------------------------------------------------
EW/TECN INFORMATION: NIL
FLOW CODE: A09
3610 K _____ _____ _____ _____ DIE PREP MODULE
WAFER NO: _____# WAFERS:
3006 _____ _____ _____ _____ XXXXX XXXXX
0000 _____ _____ _____ _____ SAW/WASH
M/C #:______M/C: XXX000 "X" XXX
0000 _____ _____ _____ _____ P/S B/O
4634 K _____ _____ _____ _____ DIE ATTACH MODULE/DIE ATTACH
AMI: 1 KNS XXXXX: 11 ESEC: 1
YLD LOSSES:____M/C #_____
FRAME STOCK #: 052655
4094 _____ _____ _____ _____ POLY CURE OVEN #:
TIME IN:__________ TIME OUT:_________
9400 _____ _____ _____ _____ PUSH/AUDIT TEST
4600 K _____ _____ _____ _____ LEAD BOND MODULE/LEAD BOND
WIRE SIZE: 1 MIL
YLD LOSSES: _____M/C #_____
USE BOND PARA CODE: C
4056 _____ _____ _____ _____ 3/OPT
9401 _____ _____ _____ _____ 3/OPT B-OFF
FLOW CODE: E07
5121 _____ _____ _____ _____ MOLD
M/C #:______
MAND COMPD: B-26 SUB-LOT #:_____
MOLD: GP
# STRIPS:_____ REMARKS:_____
5104 _____ _____ _____ _____ PACKAGE CURE
CURING TIME: 5 HRS
5217 _____ _____ _____ _____ DEJUNK
M/C#:_____
# STRIPS:______ REMARKS:_____
5601 K _____ _____ _____ _____ HONING
M/C#:_____ REMARKS:_____
5781 _____ _____ _____ _____ POST PLATE
TANK #:_____ # STRIPS:_____
5907 _____ _____ _____ _____ LMTNF
YIELD LOSSES:_____
# STRIPS:______ REMARKS:_____
5127 _____ _____ _____ _____ FOI
5602 K _____ _____ _____ _____ PACK MODULE/PACK
YIELD LOSSES:_____
EXHIBIT B
XXXXXXXXX
ASSEMBLY SERVICES AGREEMENT
EXHIBIT B
====================================================================================================================================
FORECASTING FORMAT
------------------------------------------------------------------------------------------------------------------------------------
MINIMUM
STOCK NO STK TYP BF MFLO PROD GRP LEAD ASY LO CUST MISC STOCK PER 1 PER 2 PER 3 PER 4 PER 5 PER 6 PER 7 PER 8
------------------------------------------------------------------------------------------------------------------------------------
100441 B XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
010438 B XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
023549 B XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
023546 B XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
010743 B XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
010533 L XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
010533 L XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
020057 L XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
020057 L XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
004653 L XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
007670 F XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
007667 F XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
007964 F PY MS116 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
023552 F XX XX000 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
007978 F PY MS120 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
065725 F F30 IDF 0202DL55 NMDIP006 EM 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
000626 F F30 IDF 0202DL55 NMDIP006 EM 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
065725 F F30 IDF 0202DL55 NMDIP006 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
000626 F F30 IDF 0202DL55 NMDIP006 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
010737 F F30 IDF 0202DL55 NMDIP014 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
024246 F F30 IDF 0202DL55 NMDIP014 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
021706 F F30 IDF 0202DL55 NMDIP014 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
001023 F F30 IDF 0202DL55 NMDIP014 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
009407 F F30 IDF 0202DL55 NMDIP020 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
023206 F F30 IDF 0202DL55 NMDIP020 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
022765 F F30 IDF 0202DL55 NMDIP020 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
003276 F F30 IDF 0202DL55 NMDIP022 EM 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
023996 F F30 IDF 0202DL55 NMDIP06E EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
007700 F F30 IDF 0202DL55 NMDIP06E EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
000475 F F30 IDF 0202DL55 NMDIP06E EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
009396 F F30 IDF 0202DL55 NMDIP06E EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
007768 F F30 IDF 0202DL55 NMDIP06E EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
065708 X XXX XXX00 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
065771 X XXX XXX00 0000XX000 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
065881 X XXX XXX00 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
022655 X XXX XXX00 0000XX00 XXXXX000 XX 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
024625 X XX X000X 0000XX00 XXXXX000 EM 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
051149 X XX X000X 0000XX00 XXXXX000 EM 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
023077 X XX X000X 0000XX00 XXXXX000 EM 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
024626 X XX X000X 0000XX00 XXXXX000 EM 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
024631 F SO S014N 0202DL55 NMSON014 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
024629 X XX XX00X 0000XX00 XXXXX000 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
023079 X XX XX00X 0000XX00 XXXXX000 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
024646 X XX XX00X 0000XX00 XXXXX000 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
053243 X XX XX00X 0000XX00 XXXXX000 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
023078 X XX XX00X 0000XX00 XXXXX000 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
065933 F SO SO16W 0202DL55 NMSOW016 EM 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
065917 F SO SO16W 0202DL55 NMSOW016 EM 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
014591 F SO SO20W 0202DL55 NMSOW020 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
051295 F SO SO20W 0202DL55 NMSOW020 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
024279 F SO SO20W 0202DL55 NMSOW020 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
049356 F SO SO20W 020DL55 NMSOW020 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
066001 F SO SO24W 0202DL55 NMSOW024 US 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
037192 F SO SO24W 0202DL55 NMSOW024 US 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
022539 F SO SO26W 0202DL55 NMSOW026 SA 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
022539 F TSO TSO48 0202DL55 NMTD0048 SA 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
022539 F TSO TS056 0202DL55 NMTD0056 SA 0 0 0 0 0 0 0 0
====================================================================================================================================
EXHIBIT B
====================================================================================================================================
022539 F SSO SS028 0202DL55 NSSOE026 MA 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
022539 F SSO SSO48 0202DL55 NSSOP048 EP 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
022539 F BGA BGA121 0202DL55 NUBD0121 SA 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
022539 F QFP XXXX00 0000XX00 XXXX0000 XX 0 0 0 0 0 0 0 0
====================================================================================================================================
EXHIBIT B
-------------------------------------------------------------------------------
Total Cebu Installed Capacity
FY98
in M units RR/Wk
------------------------------------------
TO-92 14.0
SOT-23 42.0
SOT-223 2.0
SOT 6 1.0
SOT 8 1.0
Diode 100.0
TO-220 1.2
SO-8 2.0
SO-16 0.1
------------------------------------------
1/22/97
-------------------------------------------------------------------------------
Page 1
Exhibit C
TOTAL PENANG FACILITY CAPACITY
--------------------------------------------------------------------------------------------------
workdays
---------------------------------------
DAILY 344.7 344.7
Run Rate FY98 FY99
-------- ---- ----
in K units
--------------------------------------------------------------------------------------------------
MDIP ASSEMBLY
-------------
flow 30 08 73 25163 25163
14/6E 395 136157 136157
20 219 75489 75489
24 6 2068 2068
28 20 6894 6894
TOTAL 713 245771 245771
simp flow
14 440 151668 151668
20 219 75489 75489
TOTAL 659 227157 227157
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
JEDEC SOIC
----------
non sim flow 14/16 1162 400541 400541
20 614 211646 211646
24 0 0 0
TOTAL 1776 612187 612187
simp flow 14 1120 386064 386064
20 602 207509 207509
TOTAL 1722 593573 593573
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
TSSOP
-----
14/16/20/24 305 105134 105134
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
SSOP
48/56 36 12409 12409
--------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
EXHIBIT D
Section 6 12/20/96
Proposed Scheduling Table
ASSEMBLY & TEST
FORECAST TIMETABLE
Week
Day
----------------------------------------------------------------------------------------------
Period 12 Period 1 Period 2 Period 3
----------------------------------------------------------------------------------------------
1 2 3 4 5 1 2 3 4 1 2 3 4 1 2 3 4 5
----------------------------------------------------------------------------------------------
1
----------------------------------------------------------------------------------------------
2 ZA A ZA
----------------------------------------------------------------------------------------------
3
----------------------------------------------------------------------------------------------
4
----------------------------------------------------------------------------------------------
5 R Y R Y R Y R Y
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R=NSC 90 DAY ROLLLING (OR 8 PD) FORECAST TO FSC
Y=FSC PROVIDES CAPACITY REQUEST TO NSC
Z=NSC PLACES BLANKET 3 PD PURCHASE ORDER WITH NSC
A=NSC RELEASES DETAIL OF WAFER STARTS FOR THE FOLLOWING PERIOD
Foundry Agreement
Penang - Exhibit G
Q497 Q198 Q298 Q398 Q498 Q199 Q299 Q399 Q499 Q100 Q200 Q300 Q400
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Volume
MDIP08 4.2 4.1 4.1 4.1 4.1 3.9 3.9 3.9 3.9 4.0 4.0 4.0 4.0
MDIP14 4.5 4.4 4.4 4.4 4.4 4.3 4.3 4.3 4.3 4.3 4.3 4.3 4.3
MDIP6E 8.8 8.6 8.6 8.6 8.6 8.3 8.3 8.3 8.3 8.5 8.5 8.5 8.5
MDIP2S 0.7 0.7 0.7 0.7 0.7 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6
MDIP20 6.3 6.1 6.1 6.1 6.1 5.9 5.9 5.9 5.9 6.0 6.0 6.0 6.0
--- --- --- --- --- --- --- --- --- --- --- --- ---
MDIP 24.5 23.9 23.9 23.9 23.9 23.1 23.1 23.1 23.1 23.4 23.4 23.4 23.4
SOIC14 7.5 7.4 7.4 7.4 7.4 8.1 8.1 8.1 8.1 9.1 9.1 9.1 9.1
SOIC16 13.4 13.2 13.2 13.2 13.2 14.4 14.4 14.4 14.4 16.1 16.1 16.1 16.1
SOIC20 12.3 12.2 12.2 12.2 12.2 13.3 13.3 13.3 13.3 14.8 14.8 14.8 14.8
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
SOIC 33.3 32.8 32.8 32.8 32.8 35.8 35.8 35.8 35.8 40.0 40.0 40.0 40.0
TSSOP 20 11.5 6.0 6.0 6.0 6.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
SSPO 48 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
-----------------------------------------------------------------------------------------------------------------------------------
Total 57.8 56.7 56.7 56.7 56.7 58.9 58.9 58.9 58.9 63.5 63.5 63.5 63.5
-----------------------------------------------------------------------------------------------------------------------------------
Assembly Price MDIP08 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3
(per K) MDIP14 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3
MDIP6E 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3 71.3
MDIP2S 173.0 173.0 173.0 173.0 173.0 173.0 173.0 173.0 173.0 173.0 173.0 173.0 173.0
MDIP20 88.0 88.0 88.0 88.0 88.0 88.0 88.0 88.0 88.0 88.0 88.0 88.0 88.0
SOIC 14 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4
SOIC 16 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4 45.4
SOIC 20 71.1 71.1 71.1 71.1 71.1 71.1 71.1 71.1 71.1 71.1 71.1 71.1 71.1
TSSOP 14/16 (assy) 116.0 116.0 116.0 116.0 116.0 116.0 116.0 116.0 116.0 116.0 116.0 116.0 116.0
TSSOP 20 (assy) 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2
SSOP48 334.0 334.0 334.0 334.0 334.0 334.0 334.0 334.0 334.0 334.0 334.0 334.0 334.0
Test price MDIP08 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9
(per k) MDIP14 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9
(single MDIP6E 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9
insert) MDIP2S 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5
MDIP20 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5
SOIC 14 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5
SOIC 16 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5
SOIC 20 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9
SSOP 48 191.0 191.0 191.0 191.0 191.0 191.0 191.0 191.0 191.0 191.0 191.0 191.0 191.0
SSOP 40 (test) 315.5 315.5 315.5 315.5 315.5 315.5 315.5 315.5 315.5 315.5 315.5 315.5 315.5
EIAJ (test) 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0
NMPCC (test) 90.0 90.0 90.0 90.0 90.0 90.0 90.0 90.0 90.0 90.0 90.0 90.0 90.0
JDIP (test) 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0
TSSOP (test) 59.6 59.6 59.6 59.6 59.6 59.6 59.6 59.6 59.6 59.6 59.6 59.6 59.6
Foundry Agreement
Penang - Exhibit G
Q497 Q198 Q298 Q398 Q498 Q199 Q299 Q399 Q499 Q100 Q200 Q300 Q400
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Total A+ T price MDIP08 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1
(per k) MDIP14 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1
MDIP6E 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1 85.1
MDIP2S 186.5 186.5 186.5 186.5 186.5 186.5 186.5 186.5 186.5 186.5 186.5 186.5 186.5
MDIP20 101.5 101.5 101.5 101.5 101.5 101.5 101.5 101.5 101.5 101.5 101.5 101.5 101.5
SOIC 14 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9
SOIC 16 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9 62.9
SOIC 20 92.0 92.0 92.0 92.0 92.0 92.0 92.0 92.0 92.0 92.0 92.0 92.0 92.0
TSSOP 20 (assay) 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2
SSOP48(assay) 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0
FOUNDRY AGREEMNT
Cebu -Exhibit G
Q397 Q497 Q198 Q298 Q398 Q498 Q199 Q299 Q399 Q499 Q100 Q200 Q300 Q400
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Volume TO 92 (assy+test) 37.3 37.3 40.4 40.4 40.4 40.4 44.8 44.8 44.8 44.8 44.6 44.6 44.6 44.6
(M) SOT 23-3 (assy) 24.1 24.1 24.6 24.6 24.6 24.6 29.0 29.0 29.0 29.0 36.4 36.4 36.4 36.4
SOT 23-5 (assy) 5.0 5.0 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5
SOT 223-4 (assy) 1.6 1.6 2.0 2.0 2.0 2.0 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5
Super SOT (assy+test) 1.9 1.9 2.5 2.5 2.5 2.5 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
69.9 69.9 77.0 77.0 77.0 77.0 88.8 88.8 88.8 88.8 95.9 95.9 95.9 95.9
Outs TO 92 (93%) 34.7 34.7 37.5 37.5 37.5 37.5 41.7 41.7 41.7 41.7 41.4 41.4 41.4 41.4
(M) SOT 23-3 (97%) 23.4 23.4 23.9 23.9 3.9 23.9 28.1 28.1 28.1 28.1 35.3 35.3 35.3 35.3
SOT 23-5 (97%) 4.9 4.9 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3
SOT 223-4 (97%) 1.6 1.6 1.9 1.9 1.9 1.9 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4
Super SOT (93%) 1.8 1.8 2.3 2.3 2.3 2.3 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
66.2 66.2 73.0 73.0 73.0 7.30 84.2 84.2 84.2 84.2 91.0 91.0 91.0 91.0
Price TO 92 (assy) 18.96 18.96 18.96 18.96 18.96 18.96 18.96 18.96 18.96 18.96 18.96 18.96 18.96 18.96
(per K) TO 92 (test) 9.77 9.77 9.77 9.77 9.77 9.77 9.77 9.77 9.77 9.77 9.77 9.77 9.77 9.77
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
TO 92 (assy+test) 28.73 28.73 28.73 28.73 28.73 28.73 28.73 28.73 28.73 28.73 28.73 28.73 28.73 28.73
SOT 23-3 (assy) 13.98 13.98 13.98 13.98 13.98 13.98 13.98 13.98 13.98 13.98 13.98 13.98 13.98 13.98
SOT 23-5 (assy) 38.11 38.11 38.11 38.11 38.11 38.11 38.11 38.11 38.11 38.11 38.11 38.11 38.11 38.11
SOT 223-4 (assy) 68.46 68.46 68.46 68.46 68.46 68.46 68.46 68.46 68.46 68.46 68.46 68.46 68.46 68.46
Super SOT (assy) 31.88 31.88 31.88 31.88 31.88 31.88 31.88 31.88 31.88 31.88 31.88 31.88 31.88 31.88
Super SOT (test) 10.07 10.07 10.07 10.07 10.07 10.07 10.07 10.07 10.07 10.07 10.07 10.07 10.07 10.07
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Super SOT (assy+test) 41.95 41.95 41.95 41.95 41.95 41.95 41.95 41.95 41.95 41.95 41.95 41.95 41.95 41.95
Ave Unit Price 25.49 25.49 26.32 26.32 26.32 26.32 26.49 26.49 26.49 26.49 25.50 25.50 25.50 25.50
Exhibit H
Principles of Manufacturing
o Forecasted volumes will be supplied covering all aspects of activity for 3
years.
o National will meet a Revenue commitment of $330m over 3 years and 3 months,
effective the date of closing of the purchase agreement.
o Price will be fixed for the first 6 months. Pricing will reflect National's
full absorption of the fixed cost based on its percent utilization of the
Xxxxx Xxxxxxxx, Xxxxx 0" facility (i.e., this incorporates the agreed
equivalency factors).
o Principles will be set to establish pricing for the second 6 months.
o Cost base for FM Class 1 will be Q4 Forecast FY97 with a fully capitalized
base.
o National will pay a xxxx up of 25% in the first 12 months.
Principles of Manufacturing
o For Class 1 the pricing after the initial 12 months is targeted to decline
12% or better given equal loadings in each subsequent interval. If the volume
is greater price reduction will be increased accordingly.
o Incremental volumes above the forecast volumes will be priced per table:
4" = 470
5" = $110
6" ABIC $825
CBTX $635
CBI $705
CS80 $500
o Available incremental capacity will be at the same rate as the base.
Principles of Manufacturing
o Pricing activity beyond Fiscal Year 00
o In case the Parties are unable to agree on prices for the
following year, the prices used in the previous year will
remain in effect, and the Parties will be allowed to reduce
the capacity commitment each quarter by a quantity of 20%,
starting one quarter after the price agreements expires. A
notice shall be given 90 days prior to any capacity reduction.
Principles of Manufacturing
o For the Class 100 and the Penang Assembly and Test Facilities the price after
the initial 12 months commitment will be at cost plus 25%. If the actual cost
is better than the agreed upon base a credit will be given to National in the
subsequent Fiscal Half equal to 50% of the savings. If the cost is greater
than the agreed upon base, the price will be at the agreed upon base.
Exhibit K
1. Shortly prior to the conclusion of the first six (6) fiscal periods of this
Agreement ("Fiscal Half"), the Parties shall meet in order to determine new
prices for assembly and test services for each Facility for the next Fiscal
Half. At that meeting the Parties will review the manufacturing history during
such part of the first Fiscal Half, for which such information shall be
available, in order to determine each Facility's actual manufacturing cost base,
which shall be consistent with National's standard cost accounting practices in
effect as of the Effective Date, (the "Reference Cost Base" per applicable
Facility). For each Facility, if the Reference Cost Base, plus a twenty-five
percent (25%) xxxx-up is less than the price applicable for the first Fiscal
Half, prices for the second Fiscal Half for that Facility will be equal to its
Reference Cost Base, plus a twenty-five percent (25%) xxxx up. Otherwise, the
prices for assembly services for the applicable Facility will remain the same as
during the first Fiscal Half.
The applicable Reference Cost Base and second Fiscal Half prices will
remain in effect for each Facility for the remaining term of this Agreement.
Shortly prior to the conclusion of the eighteenth (18th) fiscal period of this
Agreement, and every six (6) fiscal periods thereafter, the Parties shall meet
in order to determine Xxxxxxxxx'x actual manufacturing costs, which shall be
consistent with National's standard cost accounting practices in effect as of
the Effective Date, for the preceding Fiscal Half. If a Facility's actual costs
during the previous Fiscal Half were lower than its Reference Cost Base, the
Parties shall calculate what National would have paid if such actual costs had
been used in originally setting the prices, rather than the applicable Reference
Cost Base. Xxxxxxxxx shall give National a credit equal to fifty percent (50%)
of the savings National would have realized if it had paid the recalculated
prices. No monies will be owing to or from National or to or from Xxxxxxxxx if
Xxxxxxxxx'x actual costs during the preceding Fiscal Half were higher than the
applicable Reference Cost Base.
2. The prices for backgrind, standard assembly and test services purchased
during a National fiscal year in excess of the Forecast volumes will be
negotiated by the Parties on a case by case basis.
3. If National does not place orders for assembly services in accordance with
the Forecast Volumes during any National fiscal year, the provisions of the
Revenue Side Letter will apply with respect to the manner in which National will
discharge its commitment to Xxxxxxxxx for that fiscal year.
4. Pricing for any extension and/or ramp-down period beyond the first
thirty-nine (39) fiscal periods of this Agreement will be negotiated in good
faith by the Parties.
