EXHIBIT 10.16
[*] --Certain information omitted and filed separately with the Commission
pursuant to a confidential treatment request under Commission Rule 24b-2.
FOURTH AMENDMENT
TO PURCHASE AGREEMENT
FOURTH AMENDMENT (this "Amendment"), dated and effective as of the 16th day of
December, 1998 (the "Effective Date"), to the PURCHASE AGREEMENT dated September
6, 1996 , as amended by the FIRST AMENDMENT dated April 22, 1997, as further
amended by the SECOND AMENDMENT dated December 9, 1997, and as further amended
by the THIRD AMENDMENT dated September 8, 1998 (as thus amended, the "Purchase
Agreement" or "Agreement"), between CREE RESEARCH, INC. ("Seller"), a
corporation organized under the laws of the State of North Carolina, the United
States of America, and SIEMENS AKTIENGESELLSCHAFT ("Purchaser"), a corporation
organized under the laws of the Federal Republic of Germany. As used in this
Amendment, capitalized terms not defined herein which are defined in the
Purchase Agreement shall have the meaning defined in the Purchase Agreement.
In consideration of the mutual provisions below the parties hereby agree as
follows:
1. In Second Amended Schedule 1 annexed to the Third Amendment to this
Agreement, the first sentence of Paragraph A(1) is amended to increase the
number of GaN LEDs to be purchased during the year ending June 27, 1999
from ************ die to *********** die. In addition, the following is
added at the end of such Paragraph A(1): "Purchaser will also purchase from
Seller, during the period commencing June 28, 1999 and ending September 26,
1999, an additional *********** GaN LED die."
2. In Second Amended Schedule 1 annexed to the Third Amendment to this
Agreement, the shipment schedule for GaN LED die in Paragraph B(1) is
revised as follows (with no change being made to the shipment schedule
given in such paragraph for other Products):
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Quarterly (13-Week) Period Ending
------------------------------------------------------
Product* 9/27/98 12/27/98 3/29/99 6/27/99 9/26/99
=========================================================================
GaN LED die (in K) ****** ** ****** ****** ****** ******
-------------------------------------------------------------------------
* As described in Third Amended Schedule 3.
** ****** was included in June 1998 shipments.
3. In Second Amended Schedule 2 annexed to the Third Amendment to this
Agreement, the price schedule for GaN LEDs in the Paragraph (A)(1) is
revised as follows:
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Incremental Quantities Unit Price (US$)
-------------------------------------------
0 to ****** $******
-------------------------------------------
****** to ****** $******
-------------------------------------------
****** to ****** $******
-------------------------------------------
****** to ****** $******
-------------------------------------------
****** to ****** $******
-------------------------------------------
Greater than ****** $******
-------------------------------------------
4. The Purchase Agreement as previously amended shall govern the prices and
other terms applicable to Products shipped prior to the Effective Date of
this Amendment; such prices are final and no adjustment is made by this
Amendment. Except as amended hereby, the terms and conditions of the
Purchase Agreement shall continue in effect.
IN WITNESS WHEREOF, the parties, through their respective duly authorized
officers, have executed this Amendment to be effective as of the Effective Date
set out in the preamble hereto.
CREE RESEARCH, INC. SIEMENS AKTIENGESELLSCHAFT
By /s/ F. ▇▇▇▇ ▇▇▇▇▇▇ By /s/ ▇. ▇▇▇▇▇▇▇
------------------------------- ---------------------------------
F. ▇▇▇▇ ▇▇▇▇▇▇, President ▇. ▇▇▇▇▇▇▇, President, Opto
Semiconductors
Date Date
------------------------------- ---------------------------------
By /s/ ▇. ▇▇▇▇▇
---------------------------------
▇. ▇▇▇▇▇, Vice President-
Finance & Admin.
Date 16.12.98
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