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EXHIBIT 10.37(c)
[ALTERA CORPORATION LETTERHEAD]
May 22, 1998
Xx. Xxxxxx Xxxxxxxx
Department General Manager
North & South America III, Sales & Marketing Group
Electronics Components and Devices
SHARP CORPORATION
0000-0 Xxxxxxxxxx-xxx
Xxxxx, Xxxx 000
Xxxxx
SUBJECT: AMENDMENT OF PRODUCTS SUPPLY AGREEMENT
Dear Hiro:
Altera Corporation ("Altera") and Sharp Corporation ("Sharp") have entered into
the LSI Products Supply Agreement dated October 1, 1993, as amended by Mr.
Xxxxxx Xxxxx'x letter addressed to Xx. Xxxxxxxx Xxxxxx on August 28, 1996, and
as further amended by the letter addressed to you on May 22, 1997 (the "Supply
Agreement"). This letter will memorialize the understanding reached between
Xxxxx and Altera to revise the terms of payment set forth in the Supply
Agreement and the August 28, 1996, letter amendment.
Article 5, Paragraph (b) of the Supply Agreement provides for payment pursuant
to a letter of credit ("LC") payable at sight. We have agreed that instead of
these payment terms, Sharp will invoice Altera for wafer purchases on shipment,
with net thirty (30) day payment terms. Altera will open an irrevocable standby
LC in favor of Sharp at a mutually acceptable bank, presently Banque Nationale
de Paris, to back up Altera's payment obligations. The amount of the standby LC
will be as agreed upon by Xxxxx and Altera from time to time, and will be four
hundred seventy-five million (475,000,000) yen for the period August 20, 1998,
to August 19, 1999. This amount may be adjusted if there is a material and
sustained change in wafer volumes in the first and second quarters of 1999.
Xxxxx has agreed to give Altera written notice of any invoices not paid within
thirty (30) days, and to only draw on the LC if and to the extent that the
invoice remains unpaid after 15 days have passed since delivery of notice.
If the above provisions accurately and completely reflect the parties'
understanding of the arrangements described, please so indicate by executing and
returning to Altera a signed copy of this letter.
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Xx. Xxxxxx Xxxxxxxx
May 22, 1998
Page 2
Thank you for your cooperation.
Sincerely,
/s/ XXXXX XXXXXX
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Xxxxx Xxxxxx
Executive Vice President and Chief Operating Officer
Altera Corporation
The foregoing is agreed to and accepted by Sharp Corporation this 8th day of
July 1998.
SHARP CORPORATION
By:
/s/ XXXXXX XXXXXXXX
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Xxxxxx Xxxxxxxx
Department General Manager
Sharp Corporation
