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EXHIBIT 6.6
REDACTED CONFIDENTIAL TREATMENT REQUESTED
--------------------------------
The portions of this document which have been
marked "x" have been omitted and are filed
separately with the Securities and Exchange Commission.
JOINT DEVELOPMENT AGREEMENT
FOR
PROCESS TECHNOLOGIES
AMONG
AGERE SYSTEMS INC.,
AGERE SYSTEMS SINGAPORE PTE LTD.
AND
CHARTERED SEMICONDUCTOR MANUFACTURING LTD.
AMENDED AND RESTATED AS OF THE 28TH DAY OF JUNE 2002
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CONTENTS
SECTION PAGE
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1.0 DEFINITIONS 3
2.0 OBJECTIVES OF THE PROJECT 5
3.0 DEVELOPMENT PROGRAM 6
4.0 STEERING COMMITTEE AND EXECUTIVE COMMITTEE 7
5.0 PROJECT UNDERTAKINGS 8
6.0 PROJECT FUNDING 14
7.0 RECRUITING SUPPORT 16
8.0 BACKGROUND INTELLECTUAL PROPERTY - RIGHTS AND LICENSES 16
9.0 INTELLECTUAL PROPERTY OWNERSHIP 17
10.0 CONFIDENTIALITY 21
11.0 LIMITATION OF LIABILITY 22
12.0 COMPLIANCE WITH RULES AND REGULATIONS AND INDEMNIFICATION 22
13.0 TERM AND TERMINATION 23
14.0 PUBLICITY AND TRADEMARKS AND TRADENAMES 25
15.0 NON-ASSIGNABILITY 26
16.0 NOTICES 26
17.0 AGREEMENT PREVAILS 27
18.0 NOTHING CONSTRUED 27
19.0 FORCE MAJEURE 27
20.0 CHOICE OF LAW 28
21.0 HEADINGS 28
22.0 WAIVER 28
23.0 RELEASES VOID 28
24.0 POWER TO SIGN 29
25.0 SURVIVAL OF OBLIGATIONS 29
26.0 EXPORT CONTROL 29
27.0 DISPUTE RESOLUTION 29
28.0 PARTIAL INVALIDITY 30
29.0 COUNTERPARTS 30
30.0 RELATIONSHIP OF PARTIES 30
31.0 INTEGRATION 31
ATTACHMENT A : DEVELOPMENT PLANS 33
ATTACHMENT B : TOTAL PROJECT COST 45
ATTACHMENT C : INFORMATION FOR RELEASE TO THIRD PARTIES 46
ATTACHMENT D : COMPLETION OF PROJECT FOR 0.13UM AND 90NM PROCESSES 48
ATTACHMENT E : PROCEDURE FOR JOINT SELECTION OF TOOL SET AND MATERIALS FOR
JOINT DEVELOPMENT OF THE PROCESSES 49
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JOINT DEVELOPMENT AGREEMENT
FOR PROCESS TECHNOLOGIES
THIS AMENDED AND RESTATED JOINT DEVELOPMENT AGREEMENT is made and entered into
effective the 28th day of June 2002 by and among AGERE SYSTEMS INC., having its
principal place of business at 000 Xxxxx Xxxx., Xxxxxxxxx, Xxxxxxxxxxxx 00000,
U.S.A., AGERE SYSTEMS SINGAPORE PTE LTD., having a place of business at 0
Xxxxxxx Xxxxxx, Xxxxx Ayer Xxxxxxxxxx Xxxx, Xxxxxxxxx 000000 (hereinafter
collectively referred to as "Agere") and CHARTERED SEMICONDUCTOR MANUFACTURING
LTD., having its principal place of business at 00 Xxxxxxxxx Xxxxxxxxxx Xxxx X
Xxxxxx 0, Xxxxxxxxx 000000 (hereinafter referred to as "Chartered").
W I T N E S S E T H
WHEREAS, Agere and Chartered wish to cooperate for the purpose of developing
advanced CMOS logic process technologies with foundry competitive cost, feature
and schedule attributes that will enable the Parties to achieve a market leading
position in semiconductor processing capability; and
WHEREAS, Lucent Technologies, Inc., Lucent Technologies Microelectronics Pte
Ltd. and Chartered Semiconductor Manufacturing Ltd. entered into a Joint
Development Agreement for Process Technologies (hereinafter the "First
Agreement") having an effective date of July 31, 2000; and
WHEREAS, in the intervening period of time Lucent Technologies Inc. assigned its
rights and obligations under the First Agreement to Agere Systems Inc. and
Lucent Technologies Microelectronics Pte Ltd. assigned its rights and
obligations to Agere Systems Singapore Pte Ltd. and Chartered has accepted those
assignments; and
WHEREAS, the Parties desire to redefine the scope of the First Agreement and in
so doing to redefine the obligations to be undertaken by each of the Parties
hereto.
NOW, THEREFORE, the Parties agree as follows:
1.0 DEFINITIONS
1.1 "Background Information" shall mean certain informative material and
technical information, including any mask work or copyright rights in any of the
foregoing, relating to the manufacture of CMOS semiconductor devices which (i)
is owned or controlled by a Party, (ii) exists as of the effective date of the
First Agreement or which is developed by a Party hereto after the effective date
of the First Agreement but such development is outside the scope of this Joint
Development Agreement, and (iii) which is disclosed by one Party to the other
pursuant to the
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Development Program.
1.2 "Chartered's Background Information" shall mean Background Information
owned or controlled by Chartered and/or any of its Subsidiaries.
1.3 "Chartered's Facility" shall mean Chartered's wafer processing
facilities, including joint ventures between Chartered and a third party.
1.4 "Development Program" shall mean the activities relating to the
development of the 0.13um Process and the 90nm Process conducted pursuant to the
respective Development Plan, as defined in Section 3.1.
1.5 "EDA" shall mean electronic design automation.
1.6 "EDB" shall mean the Economic Development Board of Singapore.
1.7 "Enhancement Modules" shall mean collectively the xxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx modules, and "Enhancement Module" shall
mean any one of them.
1.8 "Foreground Information" shall mean informative material and technical
information, including any mask work rights or copyrights in any of the
foregoing, relating to the manufacture of CMOS semiconductor devices which is
created during the Development Program by employees, agents or consultants of
either Party engaged in the development of the Processes pursuant to such
Development Program.
1.9 "Future Technologies" shall mean (a) the 65 nm advanced deep
sub-micron CMOS digital logic and linear (mixed signal) technology, which shall
include the following: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxx) (hereinafter referred to as "the 65nm process") and
(b) process technologies for the manufacture of semiconductor devices that are
developed by Chartered or by Agere either solely or jointly with others, after
the conclusion or termination of the applicable Development Program.
1.10 "Joint Invention" shall mean an invention made by one or more
employees, agents or consultants of Chartered in conjunction with one or more
employees, agents or consultants of Agere.
1.11 "Licensed Products" shall mean any products, in wafer, die or packaged
form manufactured using (i) Processes developed during the applicable
Development Program, or (ii) Future Technologies.
1.12 "Agere's Background Information" shall mean Background Information
owned or controlled by Agere and/or any of its Subsidiaries.
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1.13 "Agere's Facility" shall mean Agere's wafer processing facilities in
Orlando, Florida or SMP in Singapore.
1.14 "Party" shall mean Agere or Chartered.
1.15 "Process" shall mean any of the continuum of processes from 0.13um
to 90nm advanced deep sub-micron CMOS digital logic and linear (mixed signal)
technology, each of which shall include the following: xxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxx, each as more specifically
described in Attachment A, and "Processes" shall mean both of them collectively.
1.16 "Process Specifications" shall mean the specifications for the
Processes, as agreed in writing by the Steering Committee.
1.17 "Project" shall mean the Chartered-Agere joint project described in
Section 2.1.
1.18 "RISC" shall mean Research Incentive Scheme for Companies.
1.19 "SMP" shall mean Silicon Manufacturing Partners Pte Ltd.
1.20 "Subsidiary" of a company shall mean a corporation or other legal
entity (i) the majority (i.e., greater than 50%) of whose shares or other
securities entitled to vote for election of directors (or other managing
authority) is now or hereafter controlled by such company either directly or
indirectly; or (ii) which does not have outstanding shares or securities but the
majority of whose ownership interest representing the right to manage such
corporation or other legal entity is now or hereafter owned and controlled by
such company either directly or indirectly; but any such corporation or other
legal entity shall be deemed to be a Subsidiary of such company only as long as
such control or ownership and control exists.
2.0 OBJECTIVES OF THE PROJECT
2.1 The objectives of this Project are to:
2.1.1 develop and deliver to manufacturing a continuum of foundry
competitive Processes, namely 0.13um and 90nm ("the 0.13um Project" and
"the 90nm Project", respectively);
2.1.2 work together with EDA providers under a separate agreement
mutually agreed upon by the Parties to develop process libraries for Agere and
Chartered customers on the 0.13um Process and the 90nm Process; and
2.1.3 train highly qualified engineers in advanced wafer process
technologies with substantial emphasis on Singaporean and Singapore Permanent
Resident engineers; and
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3.0 DEVELOPMENT PROGRAM
3.1 Chartered and Agere shall up to December 31, 2001, cooperatively
conduct the Development Program for the development of the 0.13um Process and
the 90nm Process in accordance with a plan and budget relating to that
respective Process (the "Development Plan") prepared by the Steering Committee.
The Development Plan with respect to the 0.13um Process and the 90nm Process
shall establish: (i) the scope of the Process development which will be
performed; (ii) the objectives, work plan activities and time schedules with
respect to the Development Program; (iii) the respective obligations of the
Parties with respect to the Development Program; and (iv) the Process
Specifications. The initial Development Plan for the 0.13um Process and the
90nm Process is set forth in Attachment A. From January 1, 2002, Chartered shall
solely continue with the development activities for the 0.13um Process and
the 90nm Process and may further develop the 90nm Process with third parties.
3.2 The initial Development Plan with respect to 0.13um and 90nm CMOS
logic technologies shall be attached hereto as Attachments A-1 and A-2,
respectively. The Steering Committee shall review the Development Plan on an
on-going basis and may propose changes to the Development Plan then in effect
per the procedures outlined in Section 4.0. In order to expedite the
development, Chartered may, on terms mutually agreed between Chartered and
Agere, locate certain engineers at Agere's Facility in Orlando to commence
development activities prior to the approval of the formal Development Plan by
the Executive Committee.
3.3 Chartered and Agere shall each use commercially reasonable efforts to
conduct the Development Program in accordance with the Development Plan and
within the time schedules contemplated therein.
3.4 For a period of one (1) year after January 1, 2002, each Party shall
furnish to the other Party, without any compensation, technical information
relating to corrections, improvements and modifications to be made by such Party
to the 0.13um Process, provided however, that a Party shall not be required
to furnish to the other Party such technical information, if it is prohibited or
restricted from doing so pursuant to any contractual agreement entered into by
such Party prior to execution of this Joint Development Agreement or is
prohibited from doing so under U.S. or Singapore export law. Nothing contained
in this Section 3.4 shall be construed as conferring by implication, estoppel or
otherwise any license or right under any patent, whether or not the use of any
corrections, improvements or modifications necessarily requires the use of any
patent having enforceable rights at any time anywhere in the world.
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4.0 STEERING COMMITTEE AND EXECUTIVE COMMITTEE
4.1 Chartered and Agere shall establish a committee (the "Steering
Committee") to oversee, review and recommend the direction of the Development
Program. The responsibilities of the Steering Committee shall include: (i)
monitoring and overseeing the progress of the Development Program and ensuring
open and frequent exchanges between the Parties; (ii) preparing the initial
Development Plan and revisions thereof for approval; (iii) preparing annual
Project budgets and quarterly forecasts of Project expenditure; (iv)
coordinating all invention disclosure activities resulting from the Development
Program; (v) maintaining the Development Program schedule, design rules and
electrical parameter specifications, (vi) proposing changes to the Development
Program schedule, design rules and electrical parameter specifications; and
(vii) appoint one representative from each company to review and approve
publications arising from the joint Development Program. The Steering Committee
shall be dissolved on December 31, 2001.
4.2 The Steering Committee shall consist of three (3) representatives from
each of the Parties. Each Party may replace its Steering Committee
representatives at any time, with written notice to the other Party. The
Steering Committee shall meet according to a schedule to be mutually agreed upon
and the quorum for each Steering Committee meeting shall be four (4)
representatives.
4.3 Neither Party may alter the scope, direction or schedule of the
Development Program without the Steering Committee's review and the Executive
Committee's approval.
4.4 Chartered and Agere shall establish a committee (the "Executive
Committee") to oversee and review the direction of the Project. The
responsibilities of the Executive Committee shall include: (i) approval of the
Development Plan and proposed revisions thereof; (ii) approval of the selection
of tools and materials for development; (iii) resolution of differences
identified by the Steering Committee; (iv) review of the Project to ensure
foundry competitive Processes; (v) review and approval of the annual Project
budget, quarterly forecast of Project expenditure and budget overruns. The
Executive Committee shall be dissolved on December 31, 2001.
4.5 The Executive Committee shall consist of two (2) representatives from
each of the Parties. Each Party may replace its Executive Committee
representatives at any time, with written notice to the other Party. The
Executive Committee shall meet according to a schedule to be mutually agreed
upon and the quorum for each Executive Committee meeting shall be three (3)
representatives.
4.6 Decisions of the Steering Committee and Executive Committee shall be
unanimous. In the event that the Executive Committee is unable to agree on any
issue, such issue shall be submitted to a committee (the "Management Committee")
consisting of one (1) senior manager from each Party, being in the case of
Chartered, the President and CEO and being in the case of Agere, the IC
President in the Agere Technologies Microelectronics Group. Matters that are
submitted to the Management Committee shall be resolved within fourteen (14)
days of submission (or such other
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date as mutually agreed by the Management Committee), failing which the issue
shall be resolved in accordance with Section 28 (Dispute Resolution). The above
applies only to decisions made prior to January 1, 2002. Decisions regarding any
issue from January 1, 2002 shall be the responsibility of Chartered solely.
5.0 PROJECT UNDERTAKINGS
5.1 0.13um Process Development And Transfer Project
5.1.1 The initial 0.13um Development Plan (which shall include
the list of deliverables, headcount, resources and timeline) is defined in
Attachment A-1-1.
5.1.2 Chartered shall undertake the following up to December 31,
2001:
(a) to jointly develop, integrate (including integration of
the developed Process to the manufacturing tool set) and
demonstrate manufacturability of the 0.13um Process;
(b) in the event that additional tools for development
(beyond those purchased by Agere as at the effective date of
the First Agreement) are required, to jointly select such
additional tools for development which will maximize
efficiency in manufacturing and minimize cost of ownership.
Furthermore, such additional tools will be selected such that
a majority of the tools selected for the development of the
0.13um Process is reusable for the development of the 90nm
Process. The procedure for joint selection of tools for
development is valid until December 31, 2001 and is defined in
Attachment E. The Executive Committee will approve the final
selection of tools for development. Irrespective of whether
the manufacturing tool set is identical to the tool set for
development, Chartered shall provide engineering resources for
the transfer of the resulting 0.13um Process to one of
Chartered's Facility or SMP and ensure successful
qualification of such Process in such facility as defined in
Attachment D;
(c) to jointly provide design rules, electrical parameters
and other technical documents;
(d) to jointly work with EDA providers, including Agere,
under a separate agreement mutually agreed upon by the Parties
to develop design libraries, which include but are not limited
to standard cells, I/Os and ROM and RAM compilers, for the
0.13um Process;
(e) to jointly provide a process qualification plan
(including procedures)
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and qualification and reliability data for representative
products;
(f) to jointly provide simulation and extraction models for
transistors and passive elements required to support product
designs;
(g) to jointly conduct management project reviews;
(h) to cooperate with Agere to design a qualification device
for use in development, characterization and qualification of
the 0.13um Process;
(i) to contract for the design of the qualification device
and reticles, and identify suitable product test vehicles for
use in development, characterization and qualification of the
0.13um Process;
(j) to provide program management and coordination for
Chartered assignees; and
(k) to lead in the interface with EDB.
5.1.3 Agere shall undertake the following up to December 31, 2001:
(a) to jointly develop, integrate (including integration of
the developed Process to the manufacturing tool set) and
demonstrate manufacturability of the 0.13um Process;
(b) in the event that additional tools for development
(beyond those purchased by Agere as at the effective date of
the First Agreement) are required, to jointly select such
additional tools for development which will maximize
efficiency in manufacturing and minimize cost of ownership.
Furthermore, such additional tools will be selected such that
a majority of the tools selected for the development of the
0.13um Process is reusable for the development of the 90nm
Process. The procedure for joint selection of tools for
development is valid until December 31, 2001 and is defined in
Attachment E. The Executive Committee will approve the final
selection of tools for development. Irrespective of whether
the manufacturing tool set is identical to the tool set for
development, Agere shall provide engineering resources for the
transfer of the resulting 0.13um Process to one of
Chartered's Facility or SMP and ensure successful
qualification of such Process in such facility as defined in
Attachment D;
(c) to jointly provide design rules, electrical parameters
and other technical documents;
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(d) to jointly work with EDA providers under a separate
agreement mutually agreed upon by the Parties to develop
design libraries, which include but are not limited to
standard cells, I/Os and ROM and RAM compilers, for the
0.13um Process;
(e) to jointly provide a process qualification plan
(including procedures) and qualification and reliability data
for representative products;
(f) to jointly provide simulation and extraction models for
transistors and passive elements required to support product
designs;
(g) to jointly conduct management project reviews;
(h) to design a qualification device for use in development,
characterization and qualification of the 0.13um Process;
(i) to provide design support and GDSII data for the
qualification device and assist Chartered in the development,
characterization and qualification of the product test
vehicles for the 0.13um Process;
(j) to process wafers for the 0.13um Project per the
Workplan;
(k) to provide a 0.13um development laboratory in Orlando,
Florida for the development, integration and demonstration of
manufacturability of the 0.13um Process;
(l) to develop special modules like new materials, memory
cells and processes associated with advanced lithography
tools; and
(m) to provide manufacturing support for process steps that
have been established.
5.1.4 From January 1, 2002, Chartered will continue with sole
development of the 0.13um Process. From January 1, 2002, Agere agrees to
provide, at Chartered's request, consulting services to Chartered on technical
issues for the 0.13um Process on terms and specifications to be mutually
agreed by both Parties.
5.2 90 nm Process Development And Transfer Project
5.2.1 The initial 90nm Development Plan (which shall include the list
of deliverables, headcount, resources and timeline) is defined in
Attachment A-2-1.
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5.2.2 Chartered shall undertake the following up to December 31, 2001:
(a) to jointly develop, integrate (including integration of the
developed Process to the manufacturing tool set) and demonstrate
manufacturability of the 90nm Process;
(b) to jointly select tools for development which will maximize
efficiency in manufacturing and minimize cost of ownership. The
procedure for joint selection of tools for development is valid
until December 31, 2001 and is defined in Attachment E. The
Executive Committee will approve the final selection of tools for
development. Irrespective of whether the manufacturing tool set
is identical to the tool set for development, Chartered shall
provide engineering resources for the transfer of the resulting
90nm Process to one of Chartered's Facility or SMP and ensure
successful qualification of such Process in such facility as
defined in Attachment D;
(c) to jointly provide design rules, electrical parameters and
other technical documents;
(d) to jointly work with EDA providers, including Agere, under
a separate agreement mutually agreed upon by the Parties to
develop design libraries, which include but are not limited to
standard cells, I/Os and ROM and RAM compilers, for the 90nm
Process;
(e) to jointly provide a process qualification plan (including
procedures) and qualification and reliability data for
representative products;
(f) to jointly provide simulation and extraction models for
transistors and passive elements required to support product
designs;
(g) to jointly conduct management project reviews;
(h) to cooperate with Agere to design a qualification device
for use in development, characterization and qualification of the
90nm Process;
(i) to contract for the design of the qualification device and
reticles, and identify suitable product test vehicles for use in
development, characterization and qualification of the 90nm
Process;
(j) to provide program management and coordination for
Chartered assignees;
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(k) to provide a 90nm development laboratory in Chartered's
Facility in Singapore for the development, integration and
demonstration of manufacturability of the 90nm Process; and
(l) to lead in the interface with EDB.
5.2.3 Agere shall undertake the following up to December 31, 2001:
(a) to jointly develop, integrate (including integration of the
developed Process to the manufacturing tool set) and demonstrate
manufacturability of the 90nm Process;
(b) to jointly select tools for development which will maximize
efficiency in manufacturing and minimize cost of ownership. The
procedure for joint selection of tools for development is valid
until December 31, 2001 and is defined in Attachment E. The
Executive Committee will approve the final selection of tools for
development. Irrespective of whether the manufacturing tool set
is identical to the tool set for development, Agere shall provide
engineering resources for the transfer of the resulting 90nm
Process to one of Chartered's Facilities or SMP and ensure
successful qualification of such Process in such facility as
defined in Attachment D;
(c) to jointly provide design rules, electrical parameters and
other technical documents;
(d) to jointly work with EDA providers under a separate
agreement mutually agreed upon by the Parties to develop design
libraries, which include but are not limited to standard cells,
I/Os and ROM and RAM compilers, for the 90nm Process;
(e) to jointly provide a process qualification plan (including
procedures) and qualification and reliability data for
representative products;
(f) to jointly provide simulation and extraction models for
transistors and passive elements required to support product
designs;
(g) to jointly conduct management project reviews;
(h) to design a qualification device for use in development,
characterization and qualification of the 90nm Process;
(i) to provide design support and GDSII data for the
qualification device and assist Chartered in the development,
characterization and qualification of
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the 0.10um Process;
(j) to process wafers for the 90nm Project per the Workplan;
(k) to provide a 90nm development laboratory in Orlando,
Florida for the development, integration and demonstration of
manufacturability of the 90nm Process;
(l) to develop special modules like new materials, memory cells
and processes associated with advanced lithography tools; and
(m) to provide manufacturing support for process steps that
have been established.
5.2.4 From January 1, 2002, Chartered will continue with sole
development of the 90nm Process. From January 1, 2002, Agere agrees to provide,
at Chartered's request, consulting services to Chartered on technical issues for
the 90nm Process on terms and specifications to be mutually agreed by both
Parties.
5.2.5 From January 1, 2002, Chartered shall be able to work with
third parties in the development of the 90nm Process.
5.3 In the event Agere's business strategy changes such that Agere may
engage in joint development of the 90nm Process or the 65nm Process after
January 1, 2002 with Chartered or any third party, Agere will inform Chartered
in writing within 30 days of the change of such strategy. If Agere has
subsequently decided to engage with any third party after January 1, 2002 in the
development of the 90nm Process or the 65nm process and plans to disclose this
to the public by issue of a prepared statement or a press release, Agere will
inform Chartered about such engagement in writing 30 days prior to such
disclosure to the public.
5.4 The Parties acknowledge that certain obligations of the Parties listed
in Sections 5.1 and 5.2 may change over time. The Steering Committee shall at
the appropriate time, review and propose the most suitable amendments to these
obligations for approval by the Executive Committee.
5.5 The Parties acknowledge that the tool set to be used in the
development of each of the Processes may not be fully utilized during the
Project. It is the desire of the Parties to utilize such excess capacity for the
manufacture of wafers for sale to third parties, in order to defray the costs of
development.
5.6 Enhancement Modules
5.6.1 The Parties will mutually agree on the Enhancement Modules that
will be
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included in the joint development Project.
5.6.2 The Parties undertake to jointly develop the Enhancement
Modules on the terms and conditions to be agreed.
6.0 PROJECT FUNDING
6.1 The Parties expect some reimbursements from EDB covering a portion of
the qualifying costs of the Project (the "EDB RISC"). Each Party agrees to
comply with all terms and conditions specified by EDB in connection with the EDB
RISC, and both Parties will cooperate to resolve any issues that are raised by
the EDB concerning the EDB RISC terms and conditions.
6.2 Within one (1) month from the end of each calendar quarter during the
period prior to January 1, 2002, Chartered and Agere shall aggregate all agreed
upon Project costs (excluding the Equipment costs referred to in Section 6.6)
that have been incurred by each Party during the preceding calendar quarter (the
"Aggregated Project Cost") for submission, together with the relevant auditors'
certification, by Chartered to EDB for reimbursement under the EDB RISC.
6.3 The objective of the cost sharing formula set out below is to achieve
xxxxx sharing of the Aggregated Project Cost for all costs incurred as of
December 31, 2001 (after reimbursement under the EDB RISC).
(a) The Party that has contributed more than xxx of the Aggregated
Project Cost ("Party A") shall be reimbursed in accordance with
the following formula:
xxxxxxxxxxxxxxxxxxxxxxxxxxxx
Where
R(A) = Reimbursement for Party A for the relevant calendar
quarter
PC(A) = Party A's project cost for the relevant calendar quarter
APC = Aggregate Project Cost for the relevant calendar quarter
RISC = EDB RISC received for the relevant calendar
quarter
(b) RISC shall first be paid to Party A to offset R(A). In the event
that RISC is insufficient to offset R(A), then the Party that has
contributed less than xxx of the Aggregated Project Cost ("Party
B") shall pay Party A the difference of R(A) and RISC, such
payment to be made as soon as reasonably practicable but in any
event no later than thirty (30) days after the submission of the
Aggregated Project Cost by Chartered to EDB for reimbursement
under the EDB RISC. Chartered shall pay to Agere such portion of
the EDB RISC that is due to Agere pursuant to this Section 6.3 as
soon as reasonably practicable but in any event, no later than
thirty (30) days after Chartered's receipt of the EDB RISC from
EDB.
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(c) Any surplus RISC after offsetting R(A) shall be applied to Party
B's share of the Project cost.
(d) Cost sharing shall have ceased as of December 31, 2001 and all
EDB RISC funding for expenses incurred after December 31, 2001
shall go to Chartered.
6.4 The Total Project Cost during the period prior to January 1, 2002 is
set out in Attachment B. Unless otherwise set out in Attachment B, costs not
identified in Attachment B shall be borne by the Party incurring such cost, save
that the Executive Committee may, on a case-by-case basis and in accordance with
Section 4.4, approve budget overruns and the sharing of such costs between the
Parties. The Parties acknowledge that the costs set out in Attachment B may
change over time due to changes in the obligations of each Party and the
activities to be performed in Singapore and Orlando, as envisaged in Section
5.4. In such event, the Steering Committee will propose the appropriate
amendments to the Project budget for approval by the Executive Committee.
6.5 Chartered will act as the intermediary for submission of all claims
for qualifying costs to EDB. When making claims, the Parties shall ensure that
all receipts and statements are in form and substance acceptable to EDB, and the
Parties shall cooperate with EDB in securing any claims to which they are
entitled under the EDB RISC.
6.6 The acquisition cost of all process equipment and related capital
items (the "Equipment") required to be purchased by each Party, in accordance
with the undertakings set out in Section 5, shall be borne solely by that Party
acquiring the Equipment.
6.7 In the event that funding support from EDB ceases, neither this
Project nor this Joint Development Agreement shall terminate, but the Executive
Committee shall within thirty (30) days of notice of cessation of funding
support, meet to discuss alternative future funding arrangements.
6.8 With effect from January 1, 2002, the cost-sharing described above
shall cease and all EDB RISC funding for expenses incurred after December 31,
2001 shall be payable to Chartered solely.
6.9 In the event EDB requires that all or any portion of the EDB RISC
funding already disbursed for expenses incurred up to December 31, 2001 be
reimbursed to EDB due to Agere modifying its obligations under the First
Agreement, Agere shall pay to Chartered the amount of the EDB RISC received by
Chartered and Agere and required by the EDB to be reimbursed.
6.10 In the event EDB ceases to provide EDB RISC funding for expenses
incurred up to December 31, 2001 (but which have not yet been disbursed) due to
Agere modifying its obligations under the First Agreement, Agere shall pay to
Chartered the amount of EDB RISC Chartered would have been entitled to.
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6.11 Agere shall not be liable to pay to Chartered all or any portion of
the EDB RISC funding for expenses incurred after December 31, 2001 in the event
EDB requires that all or any portion of this EDB RISC funding be reimbursed to
EDB.
7.0 RECRUITING SUPPORT
Agere shall endeavor to support Chartered in the recruitment of technology
development personnel in Singapore or such other locations as Chartered shall
direct up until December 31, 2001. From January 1, 2002, Agere shall endeavour
to support Chartered in the recruitment of technology development personnel in
Singapore as part of the consulting services rendered from Agere to Chartered on
terms and specifications to be mutually agreed by both Parties, in accordance
with Sections 5.1.4 and 5.2.4.
8.0 BACKGROUND INTELLECTUAL PROPERTY - RIGHTS AND LICENSES
8.1 Chartered grants to Agere a xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxx right to use Chartered's Background Information, excluding
patents (i) for performing those acts that are reasonably necessary to enable
Agere to develop the 0.13um Process and the 90nm Process during the
respective Development Program and (ii) to make, have made, use, offer to sell,
sell or import Licensed Products during the Development Program relating to such
Process and after the conclusion or (subject to Section 13.2.5) termination of
the Development Program relating to such Process. The grant of the license in
this Section 8.1 includes the right, subject to the confidentiality provisions
set forth in this Joint Development Agreement to (i) sublicense those portions
of Chartered's Background Information, excluding patents, that are necessarily
used when using the Foreground Information or Future Technologies to make, have
made, use, offer to sell, sell or import Licensed Products, and (ii) sublicense
Chartered's Background Information, excluding patents, to third parties, to
allow the third party to work with or for Agere in the development of the 90nm
Process from January 1, 2002 and in the development of Future Technologies.
8.2 Agere grants to Chartered a xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxx right to use Agere's Background Information, excluding
patents (i) for performing those acts that are reasonably necessary to enable
Chartered to develop the 0.13um Process and the 90nm Process during the
respective Development Program and (ii) to make, have made, use, offer to sell,
sell or import Licensed Products during the Development Program relating to such
Process and after the conclusion or (subject to Section 13.2.5) termination of
the Development Program relating to such Process. The grant of the license in
this Section 8.2 includes the right, subject to the confidentiality provisions
set forth in this Joint Development Agreement, to (i) sublicense those portions
of Agere's Background Information, excluding patents, that are necessarily used
when using the Foreground Information or Future Technologies to make, have made,
use, offer to sell, sell or import Licensed Products, and (ii) sublicense
Agere's Background
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Information, excluding patents, to third parties, to allow the third party to
work with or for Chartered in the development of the 90nm Process from
January 1, 2002 and in the development of Future Technologies.
8.3 Subject to Section 9.3, there are no patent licenses being granted in
this Joint Development Agreement. The licensing of patents shall be governed by
the existing Patent License Agreement between Agere and Chartered effective as
of January 1, 1998.
8.4 The rights granted to Chartered shall include the right to disclose
to third party customers, subcontractors, EDA providers, and design service
providers of Chartered, technical information of the type specified in
Attachment C.
8.5 The rights granted to Agere shall include the right to disclose to
third party customers, subcontractors, EDA providers, and design service
providers of Agere, technical information of the type specified in Attachment C.
9.0 INTELLECTUAL PROPERTY OWNERSHIP
9.1 All Foreground Information and any intellectual property rights
therein (other than patents) which are created prior to January 1, 2002: (i)
solely by Agere's employees, agents or consultants or (ii) solely by Chartered's
employees, agents or consultants or (iii) by the employees, agents or
consultants of both Agere and Chartered, shall be jointly owned by Agere and
Chartered with each Party being free to use and/or license without accounting to
the other. In addition, in those jurisdictions where consent of all joint owners
is required for licensing, each joint owner agrees to provide such consent.
9.2 All Foreground Information and any intellectual property rights
therein (other than patents) which are created on or after January 1, 2002:
(i) solely by Agere's employees, agents or consultants working in Chartered's
Facility or (ii) solely by Chartered's employees, agents or consultants or
(iii) by the employees, agents or consultants of both Agere and Chartered, shall
be solely owned by Chartered with Chartered being free to use and/or license
without accounting to Agere. Provided that, with regard to Foreground
Information created solely or jointly by Agere employees, Agere will retain a
personal, royalty-free, perpetual, non-transferable, worldwide and non-exclusive
right to use such Foreground Information.
9.3 The following provisions of this Section 9.3 shall apply only with
respect to any Joint Inventions. The term Invention shall be as defined by Title
35 of the United States Code and shall include the intellectual property rights
which may be granted as a result of the filing of United States and foreign
patent applications, including provisional patent applications, and further
including without limitation, all reissues, extensions, substitutions,
continuations, continuations-in-part, and divisions of any of the foregoing.
9.3.1 The Invention Disclosure Committee shall consist of one
(1) Chartered legal
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or technical representative, and one (1) Agere legal or technical
representative. Either Party may replace its Invention Disclosure Committee
representatives at any time, with written notice to the other Party. Each Party
will maintain, compile and distribute the list of invention disclosure
submissions received within the last one (1) calendar month determined by each
Party as candidate Joint Inventions for consideration by the Invention
Disclosure Committee. Such list of Joint Inventions will be created and shared
by the Parties' respective Invention Disclosure Committee members from Agere and
Chartered at least two (2) weeks in advance of the Invention Disclosure
Committee meeting date. The Invention Disclosure Committee will meet (via
telephone or face-to-face) every month to discuss and assign the Joint
Inventions. If there are less than two (2) submissions for a given calendar
month, the Invention Disclosure Committee meeting for that month shall be
postponed to the next Invention Disclosure Committee meeting date, and the
submission (if any) will be considered by the Invention Disclosure Committee at
the next Invention Disclosure Committee meeting date. If however there is one
invention disclosure, and no invention disclosure meetings are held for two (2)
successive months, an invention disclosure meeting will be held in the following
month to consider this submission. The Party that does not select this
submission will receive an additional submission in the next odd numbered
occurrence of submissions, as set forth in Clause 9.3.2 (a).
9.3.2 (a) Joint Inventions in question shall be divided equally
between the Parties, with the Parties alternating their selection until all
submissions have been selected for assignment and ownership. If an odd number of
submissions are in question, then the Party which receives the lesser number of
inventions shall receive the greater number in the next odd numbered occurrence
of submissions whereas it is desirable that each Party receives half of the
total Joint Inventions created during the course of the Development Program.
9.3.2 (b) The first Party to select a submission for assignment,
providing sole, individual ownership rights, and all rights and privileges
thereof, in all jurisdictions in the world attributed to it, shall be determined
by examining the last whole number (units column) in the Dow Xxxxx Industrial
Average (DJIA) as reported in the Wall Street Journal on the first Tuesday of
the month in which the Invention Disclosure Committee meets to review the
submissions in question. If the last whole number is an even number
(i.e. 0,2,4,6,8) then Agere is the first Party to select, with each Party
alternating thereafter until all submissions have been selected for assignment.
Similarly, if the last whole number is an odd number (i.e. 1,3,5,7,9) then
Chartered is the first Party to select, with each Party alternating thereafter
until all submissions have been selected for assignment.
9.3.2 (c) For example, on Tuesday May 2nd, 2000, the DJIA at the time
the market closed in New York was reported at 10,731.12 as reported in the
Wednesday May 3rd publication of the Wall Street Journal. Thus, in this example,
if the Invention Disclosure Committee was scheduled to meet in May 2000 to
review the submissions received in the preceding month (for this example,
April 1, 2000 through April 30, 2000) then Chartered would be provided first
selection, thereafter alternating between Agere and Chartered until the list has
been exhausted. Furthermore, the submissions in question for assignment between
the Parties would only be those submissions identified prior to May 1, 2000.
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9.3.3 Agere grants to Chartered under its assigned Joint Inventions
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx licenses for Licensed Products in accordance
with the license scope set forth in Section 9.3.5. Chartered grants to Agere
under its assigned Joint Inventions, xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
licenses for Licensed Products in accordance with the license scope set forth in
Section 9.3.5.
9.3.4 All licenses granted shall continue xxxxxxxxxxxxxxxxxxxx.
9.3.5 (a) The licenses granted herein are licenses to (i) make, have
made, use, lease, offer for sale, sell and import Licensed Products; (ii) make,
have made, use and import machines, tools, materials and other instruments,
insofar as such machines, tools, materials and other instruments are involved in
or incidental to the development, manufacture, testing or repair of Licensed
Products which are or have been made, used, leased, owned, offered for sale,
sold or imported by the grantee of such license; and (iii) convey to any
customer of the grantee, with respect to any Licensed Product which is sold or
leased by such grantee to such customer, rights to use and resell such Licensed
Products as sold or leased by such grantee (whether or not as part of a larger
combination); provided, however, that no rights may be conveyed to customers
with respect to any invention which is directed to (1) a combination of such
Licensed Product (as sold or leased) with any other product, (2) a method or
process which is other than the inherent use of such Licensed Product itself (as
sold or leased), or (3) a method or process involving the use of a Licensed
Product to manufacture (including associated testing) any other product.
9.3.5 (b) Licenses granted herein are not to be construed either
(i) as consent by the grantor to any act which may be performed by the grantee,
except to the extent impacted by a patent licensed herein to the grantee, or
(ii) to include licenses to contributorily infringe or induce infringement under
U.S. law or a foreign equivalent thereof.
9.3.5 (c) The grant of each license hereunder includes the right to
grant sublicenses within the scope of such license to a Party's Subsidiary for
so long as they remain a Subsidiary. Any such sublicense may be made effective
retroactively, but not prior to the effective date of the First Agreement
hereof, nor prior to the sublicensees becoming a Subsidiary of such Party.
9.3.5 (d) The right to have Licensed Products made pursuant to this
Joint Development Agreement is not limited to Licensed Products custom designed
by the grantee of the license, but shall include the right to have "off the
shelf" Licensed Products made for the grantee and its Subsidiary(ies).
9.3.6 Agere and Chartered shall be responsible for obtaining the
necessary signatures of their respective employees, agents or consultants,
including appropriate documents to effectuate assignment of ownership in such
Joint Invention. Agere and Chartered shall also ensure that each of its
respective employees who is a co-inventor of any Joint Invention will devote
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sufficient time to assist in the drafting and prosecution of the other Party's
assigned Joint Invention, so long as that employee continues to be employed by
that Party. If either Party is of the view that an employee of the other Party
is not devoting sufficient time to assist in the drafting or prosecution of its
assigned Joint Invention, then such matter shall be referred to the Steering
Committee for necessary action. Furthermore, each Party shall pay to its own
employees any patent/invention incentive that such Party would normally have
granted to its employees if the invention was solely invented by that Party. To
facilitate administration of each Party's respective patent/invention incentive
scheme, each Party shall provide to the other Party, with respect to each Joint
Invention assigned to the first mentioned Party, a monthly report indicating the
occurrence of any of the following dates in the lifetime of an assigned Joint
Invention:
(a) date that assigned Joint Invention was accepted for search/prosecution
by that Party's patent committee;
(b) date of US filing of the assigned Joint Invention with the US PTO; and
(c) date of patent issuance by the US PTO.
9.3.7 The Party that is the assigned owner of any and all resulting
patents arising from the Joint Invention, shall pay all filing, prosecution and
maintenance fees, and shall be entitled to all revenues derived by such Party
relating to the issued patent.
9.3.8 If a Party chooses not to file any patent application for an
assigned Joint Invention, it may offer such Joint Invention to the other Party
for re-assignment. The Parties will make reasonable efforts to notify each other
about Joint Inventions that may be available for re-assignment, but failure to
provide such information will not constitute a breach of this Agreement. Upon
re-assignment of a Joint Invention to the other Party, Sections 9.3.3 through
9.3.7 would apply to such Joint Invention as if it had always been assigned to
the other Party.
9.4 To avoid loss of patent rights as a result of premature public
disclosure of patentable information and in no way limiting Section 10
(Confidentiality), neither Party may publicly disclose or commercialize any
Joint Invention without the prior written consent of the other Party, unless (a)
a corresponding patent application has already been filed in any country where
such patent application will serve as the basis of establishing an effective
filing date for countries that are signatories to the Patent Cooperation Treaty,
or (b) xxxxxxxxxxxxxxxxxxxxx have elapsed since the patentable information has
been considered by the Invention Disclosure Committee and the Party controlling
the Joint Invention has not declared in writing its intention to keep the Joint
Invention as a trade secret. Notwithstanding the foregoing, either Party may
commercialize a Joint Invention provided they are able to do so without
disclosing the trade secret or jeopardizing any patent rights.
9.5 All patentable inventions and any intellectual property rights therein
which are created solely by Agere's employees, agents or consultants shall be
solely owned by Agere. All patentable inventions and any intellectual property
rights therein which are created solely by
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CHARTERED'S EMPLOYEES, AGENTS OR CONSULTANTS SHALL BE SOLELY OWNED BY CHARTERED.
10.0 CONFIDENTIALITY
10.1 Subject to the provisions of Section 9.4, each Party shall keep any
technical information provided or disclosed by the other Party in confidence or
jointly developed by the Parties in confidence and shall not disclose such
information to any third party (except for customers, consultants, manufacturers
and contractors, as necessary to exercise any have made rights granted in this
Joint Development Agreement, which customers, consultants, manufacturers and
contractors have entered into a confidentiality agreement having terms
substantially similar to the confidentiality provisions contained in this Joint
Development Agreement) during the term of this Joint Development Agreement and
for a period of xxxxxxxxxxxx thereafter.
10.2 Each Party shall not disclose the terms and conditions of this Joint
Development Agreement to any third party, except to the EDB.
10.3 The confidentiality obligations provided in Sections 10.1 and 10.2
shall not apply to any information which:
10.3.1 is known by the receiving Party at the time of its receipt
thereof from the other Party;
10.3.2 is publicly known through no fault of the receiving Party;
10.3.3 is rightfully provided to the receiving Party without any
restriction on disclosure by a third party;
10.3.4 is independently developed by the receiving Party without use
of the information furnished by the disclosing Party;
10.3.5 is required to be disclosed by laws or regulations of the
Republic of Singapore or the United States of America, as the case may be, or
by court order; provided, however, that the Party so required shall first have
made a good faith effort to obtain a protective order requiring that the
information and documents so disclosed be used only for the purposes for which
the order was issued; or
10.3.6 is required to be disclosed by any securities commission,
exchange or securities regulatory or monitoring body (the "Regulators"), or to
provide or file any information with respect to this Joint Development
Agreement with the Regulators.
10.4 Neither Party shall be liable for any inadvertent or accidental
disclosure of joint information or information received from the other Party
under this Joint Development Agreement, provided such disclosure occurs despite
the exercise of a reasonable degree of care which is at least
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as great as the care such Party normally takes to preserve its own proprietary
information of a similar nature; and provided further, however, that the Party
permitting any material unauthorized disclosure shall use its best efforts to
stop any material unauthorized disclosure and to mitigate any damage caused
thereby.
11.0 LIMITATION OF LIABILITY
11.1 Each Party believes that the technical information to be furnished by
it hereunder will be true and accurate. However, neither Party shall be held to
any liability for errors or omissions in such technical information.
11.2 Each Party warrants that the technical information and copyrights
licensed by such Party under this Joint Development Agreement are the original
work of such Party (or such Party has a valid right to license such property)
and it has the power to grant the rights described in this Joint Development
Agreement.
11.3 Except as provided in Sections 11.1 and 11.2, the Parties make no
representations or warranties, expressly or impliedly. By way of example but not
of limitation, the Parties make no representations or warranties of
merchantability or fitness for any particular purpose with respect to any
technical information provided or licensed hereunder to any Party, or that the
use of any Party's technical information or any portion of it will not infringe
any patent, copyright, trademark or other intellectual property rights of any
third party, and it shall be the sole responsibility of the Party to make such
determination as is necessary with respect to the acquisition of licenses under
patents or other intellectual property rights of third Parties. The Parties
shall not be held to any liability with respect to any patent infringement of a
patent owned by a third party on account of, or arising from the use of any
technical information provided or licensed hereunder.
11.4 NEITHER PARTY SHALL BE LIABLE FOR ANY INCIDENTAL, SPECIAL OR
CONSEQUENTIAL LOSS OR DAMAGE, INCLUDING LOST PROFITS OR LOST REVENUE ARISING OUT
OF THIS JOINT DEVELOPMENT AGREEMENT, WHETHER ARISING OUT OF BREACH OF WARRANTY,
BREACH OF CONTRACT, NEGLIGENCE, STRICT TORT LIABILITY OR OTHERWISE.
12.0 COMPLIANCE WITH RULES AND REGULATIONS AND INDEMNIFICATION
12.1 Chartered's personnel shall, while on any location of Agere in
connection with the joint development work under this Joint Development
Agreement, comply with Agere's rules and regulations with regard to safety and
security. Agere shall inform such personnel of such rules and regulations.
Chartered shall have full control over such personnel and shall be entirely
responsible for their complying with Agere's rules and regulations. Chartered
agrees to indemnify and save Agere harmless from any claims or demands,
including the costs, expenses and reasonable attorneys' fees incurred on account
thereof, that may be made by (i) anyone for injuries to persons or damage to
property to the extent they result from the willful misconduct or negligence of
Chartered's
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personnel; or (ii) Chartered's personnel based on Worker's Compensation or any
other similar laws or employment related claims to the extent such claims are
based on acts of Chartered. Chartered agrees to defend Agere, at Agere's
request, against any such claim or demand.
12.2 Agere's personnel shall, while on any location of Chartered, in
connection with the joint development work under this Joint Development
Agreement, comply with Chartered's rules and regulations with regard to safety
and security. Chartered shall inform such personnel of such rules and
regulations. Agere shall have full control over such personnel and shall be
entirely responsible for their complying with Chartered's rules and regulations.
Agere agrees to indemnify and save Chartered harmless from any claims or
demands, including the costs, expenses and reasonable attorneys' fees incurred
on account thereof, that may be made by (i) anyone for injuries to persons or
damage to property to the extent they result from the willful misconduct or
negligence of Agere's personnel; or (ii) Agere's personnel based on Worker's
Compensation or any other similar laws or employment related claims to the
extent such claims are based on acts of Agere. Agere agrees to defend Chartered,
at Chartered's request, against any such claim or demand.
12.3 Agere and Chartered shall, at all times, retain the administrative
supervision of their respective personnel.
13.0 TERM AND TERMINATION
13.1 This Amended and Restated Joint Development Agreement shall commence
on the effective date of the First Agreement and shall expire upon the
successful completion of the 90nm Project, as defined in Attachment D, at
Chartered's Facility.
13.2 Termination For Breach
13.2.1 If Chartered fails to fulfill one or more of its material
obligations under this Joint Development Agreement, Agere may, upon its
election and in addition to any other remedies that it may have, at any time
terminate this Joint Development Agreement by not less than thirty (30) days
written notice to Chartered specifying any such breach, unless within the period
of such notice all breaches specified therein shall have been remedied to
Agere's reasonable satisfaction. If the breach is not one which is capable of
being cured within thirty (30) days and Chartered has commenced to cure the
breach within such time and continues to do so diligently and in good faith,
then Chartered shall be granted an extension for a reasonable period of time.
13.2.2 If Agere fails to fulfill one or more of its material
obligations under this Joint Development Agreement, Chartered may, upon its
election and in addition to any other remedies that it may have, at any time
terminate this Joint Development Agreement by not less than thirty (30) days
written notice to Agere specifying any such breach, unless within the period of
such notice all breaches specified therein shall have been remedied to
Chartered's reasonable satisfaction. If the breach is not one which is capable
of being cured within thirty (30) days and Agere has commenced to cure the
breach within such time and continues to do so diligently and in good faith,
then Agere
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shall be granted an extension for a reasonable period of time.
13.2.3 Either Party may terminate this Joint Development Agreement
effective immediately by written notice if or when it is discovered that the
other Party has: (i) intentionally or in a willful, wanton or reckless manner,
made any material, false representation, report or claim relative hereto;
(ii) violated each other's copyright or trademark; (iii) become insolvent,
invoked as a debtor under any laws relating to the relief of debtors' or
creditors' rights, or has had such laws invoked against it; (iv) become
involved in any liquidation or termination of business; (v) been adjudicated
bankrupt; or (vi) been involved in an assignment for the benefit of its
creditors.
13.2.4 In the event of termination of this Joint Development
Agreement in accordance with this Section 13.2 due to breach by Agere, Agere
shall pay to Chartered the amount of the EDB RISC received by Chartered and
Agere and required by the EDB to be reimbursed. In the event of termination of
this Joint Development Agreement in accordance with this Section 13.2 due to
breach by Chartered, Chartered shall pay to the EDB the amount of the EDB RISC
received by Chartered and Agere and required by the EDB to be reimbursed.
13.2.5 In the event Chartered terminates this Joint Development
Agreement for breach by Agere, upon such termination Agere agrees to forebear
in the use or licensing of any of the Chartered Background Information for a
period of xxxxxxxxx from the date of termination. In the event Agere terminates
this Joint Development Agreement for breach by Chartered, upon such termination
Chartered agrees to forebear in the use or licensing of any of the Agere
Background Information for a period of xxxxxxxxxxx from the date of termination.
13.2.6 In the event a Party terminates this Joint Development
Agreement for breach by the other Party, upon such termination the Party in
breach agrees to forebear in the use or licensing of any of the jointly owned
Foreground Information for a period of xxxxxxxxxxx from the date of termination.
13.3 Termination For Convenience
13.3.1 Either Party may terminate this Joint Development Agreement
for convenience by giving written notice at least xxxxxxxxxxxxx prior to the
planned successful completion of a Process (excluding Enhancement Modules)
under development, at Chartered's Facility or Agere's Facility or a
Chartered-Agere joint venture facility, whichever is later, and such termination
shall be effective upon the actual successful completion of that Process, as
defined in Attachment D.
13.3.2 Upon termination of this Joint Development Agreement for
convenience in accordance with Section 13.3.1, neither Party shall be liable
to the other, either for compensation or for damages of any kind or character
whatsoever, whether on account of the loss by Agere or Chartered of present or
prospective profits on sales or anticipated sales, or expenditures, investments
or commitments made in connection therewith, or on account of any other cause or
thing
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whatsoever. In the event of termination of this Joint Development Agreement for
convenience in accordance with Section 13.3.1, Agere shall pay to Chartered the
amount of the EDB RISC received by Agere and required by the EDB to be
reimbursed, and Chartered shall pay to the EDB the amount of the EDB RISC
received by Chartered and required by the EDB to be reimbursed.
13.4 Upon expiration or termination of this Joint Development Agreement,
each Party shall immediately return all proprietary information originated and
owned solely by the other Party, except for that information specifically needed
for the support of the Processes.
14.0 PUBLICITY AND TRADEMARKS AND TRADENAMES
14.1 Each Party agrees to obtain prior written approval from the other
Party for any press release or public announcement referring to the other Party,
this Joint Development Agreement or to any of the terms and conditions herein.
14.2 No right is granted herein to either Party to use any identification
(such as, but not limited to, trade names, trademarks, trade devices, service
marks or symbols, and abbreviations, contractions or simulations thereof) owned
by or used to identify the other Party or any of its Subsidiaries or affiliates
or any of its or their products, services or organizations, and, with respect to
the subject matter of this Joint Development Agreement, each Party agrees that
it will not, without the prior written permission of the other Party, (i) use
any such identification in advertising, publicity, packaging, labeling or in any
other manner to identify itself or any of its products, services or
organizations or (ii) represent directly or indirectly that any product, service
or organization of it is a product, service or organization of the other Party
or any of its Subsidiaries or affiliates, or that any product or service of it
is made in accordance with or utilizes any information of the other Party or any
of its Subsidiaries or affiliates.
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15.0 NON-ASSIGNABILITY
Neither Party may assign this Joint Development Agreement nor the performance of
this Joint Development Agreement, or any part thereof, nor transfer licenses or
rights hereunder to anyone other than a Subsidiary without the written consent
of the other Party hereto. However, if either of the Parties divests all or a
portion of its business and such divested business continues operation as a
separately identifiable business, then the licenses granted hereunder to the
divesting Party may be assigned to such divested separate business, but only (i)
for the duration and term of licenses as specified in this Joint Development
Agreement, (ii) to the extent and for the time the divested business functions
as a separately identifiable business, and (iii) for products and services of
the kind provided by the divested business prior to its divestiture and not to
any products or services of any entity which acquires the divested business. Any
such divestiture or other business reorganization affecting the ownership or
title of any of a Party's patents shall be made subject to the rights and
obligations created under this Joint Development Agreement.
16.0 NOTICES
All notices, demands, orders, acknowledgments or other communications required
or permitted under this Joint Development Agreement shall be in writing and
shall be deemed given: (i) when delivered personally; (ii) when sent by
facsimile; (iii) five (5) days after having been sent by registered or certified
mail, return receipt requested, postage prepaid; or (iv) three (3) days after
deposit with a commercial overnight carrier, with written verification of
receipt. All communications will be sent to the addresses set forth below.
Either Party may change its address by giving notice pursuant to this section.
If sent to Agere:
Agere Systems Inc.
000 Xxxxx Xxxxxxxxx
Xxxxxxxxx, XX 00000 XXX
Attention: PURPOSELY LEFT BLANK
Title:
Fax Number: 000-000-0000
With a copy to:
Agere Systems Inc.
Law Group
Room 5SC03
Xxx Xxx Xxx
Xxxxxxxx Xxxxxxx, XX 00000 XXX
Attention: Xxxx X. Xxxxxx
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Fax Number: 000-000-0000
If sent to Agere Systems Singapore:
Agere Systems Singapore Pte Ltd.
0 Xxxxxxx Xxxxxx
Xxxxx Xxxx Xxxxxxxxxx Xxxx
Xxxxxxxxx 000000
Attention: Xx. Xxxx Xxxxx
Title: Managing Director
Fax Number: 00-0000000
If sent to Chartered:
Chartered Semiconductor Manufacturing Ltd.
00 Xxxxxxxxx Xxxxxxxxxx Xxxx X Xxxxxx 0
Xxxxxxxxx 000000
Attention: Legal Department
Fax Number: 00-0000-0000
17.0 AGREEMENT PREVAILS
This Joint Development Agreement shall prevail in the event of any conflicting
terms or legends which may appear on Agere information or Chartered information
or any joint information.
18.0 NOTHING CONSTRUED
Neither the execution of this Joint Development Agreement nor anything in it or
in Agere information or in Chartered information shall be construed as: (i) an
obligation upon either Party or their Subsidiaries to furnish, except as
provided in Section 3.4, any assistance of any kind whatsoever, or any products
or information other than Chartered information or Agere information or to
revise, supplement or elaborate upon such information; or (ii) providing or
implying any arrangement or understanding that either Party or its Subsidiaries
will make any purchase from the other Party or its Subsidiaries; or (iii)
preventing either Party hereunder from pursuing other development activities
either alone or with another company.
19.0 FORCE MAJEURE
Neither Party shall be liable for any loss, damage, delay or failure of
performance resulting directly or indirectly from any cause which is beyond its
reasonable control, including but not limited to acts of God, riots, civil
disturbances, wars, states of belligerency or acts of the public enemy, strikes,
work stoppages, or the laws, regulations, acts or failure to act of any
governmental authority. In the event that performance under this Joint
Development Agreement is prevented for a continuous
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period of two (2) months or longer by any of the foregoing causes, the Party not
affected by the Force Majeure events shall have the right to terminate this
Joint Development Agreement by giving written notice to the other Party. Upon
termination of this Joint Development Agreement in accordance with this Section
19.0, neither Party shall be liable to the other, either for compensation or for
damages of any kind or character whatsoever, whether on account of the loss by
Agere or Chartered of present or prospective profits on sales or anticipated
sales, or expenditures, investments or commitments made in connection therewith,
or on account of any other cause or thing whatsoever. In the event of
termination of this Joint Development Agreement for convenience in accordance
with this Section 19.0, Agere shall pay to Chartered the amount of the EDB RISC
received by Agere and required by the EDB to be reimbursed, and Chartered shall
pay to the EDB the amount of the EDB RISC received by Chartered and required by
the EDB to be reimbursed.
20.0 CHOICE OF LAW
The Parties hereto desire and agree that the laws of the State of New York shall
apply in any dispute or controversy arising with respect to this Joint
Development Agreement, without regard to conflicts of laws provisions. The
United Nations Convention on Contracts for the International Sale of Goods shall
not apply to this Joint Development Agreement.
21.0 HEADINGS
All section headings, including those in the Attachments are for convenience
purposes only and shall in no way affect, or be used, in the interpretation of
this Joint Development Agreement.
22.0 WAIVER
No failure, delay, relaxation or indulgence on the part of either Party in
exercising any power or right conferred upon such Party under the terms of this
Joint Development Agreement will operate as a waiver of such power or right nor
will any single or partial exercise of any such power or right preclude any
other or further exercise thereof or the exercise of any other power or right
under this Joint Development Agreement.
23.0 RELEASES VOID
Neither Party shall require waivers or releases of any personal rights from
representatives of the other in connection with visits to its premises and both
Parties agree that no such releases or waivers shall be pleaded by them or third
persons in any action or proceeding.
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24.0 POWER TO SIGN
Chartered and Agere covenant, warrant and represent that their respective
representatives signing this Joint Development Agreement have full power and
proper authority to sign this Joint Development Agreement and so bind the
Parties, and that there are no outstanding assignments, grants, licenses,
encumbrances, obligations or agreements, either written, oral or implied,
inconsistent with any provision of this Joint Development Agreement.
25.0 SURVIVAL OF OBLIGATIONS
The obligations of the Parties in Sections 1.0, 3.4, 8.0 through 31.0 of this
Joint Development Agreement shall survive termination or cancellation of this
Joint Development Agreement.
26.0 EXPORT CONTROL
The Parties acknowledge that the technical information (including, but not
limited to, services and training) provided under this Joint Development
Agreement are subject to U.S. export laws and regulations and any use or
transfer of such technical information must be authorized under those laws and
regulations. The Parties agree that they will not use, distribute, transfer, or
transmit the technical information (even if incorporated into products) except
in compliance with U.S. export regulations. If necessary, Agere may request
Chartered to sign written assurances and other export-related documents as may
be required for Agere to comply with U.S. export regulations.
27.0 DISPUTE RESOLUTION
27.1 If a dispute arises out of or relates to this Joint Development
Agreement, or the breach, termination or validity thereof, the Parties agree to
submit the dispute to a sole mediator selected by the Parties or, at any time at
the option of a Party, to mediation by the International Chamber of Commerce
("ICC"). If not thus resolved, it shall be referred to a sole arbitrator
selected by the Parties within thirty (30) days of the mediation, or in the
absence of such selection, to ICC arbitration which shall be governed by the
United States Arbitration Act.
27.2 Any award made: (i) shall be a bare award limited to a holding for or
against a Party and affording such remedy as is deemed equitable, just and
within the scope of this Joint Development Agreement; (ii) shall be without
findings as to issues (including but not limited to patent validity and/or
infringement) or a statement of the reasoning on which the award rests; (iii)
may in appropriate circumstances (other than patent disputes) include injunctive
relief; (iv) shall be made within four (4) months of the appointment of the
arbitrator; and (v) may be entered in any court of competent jurisdiction.
27.3 The requirement for mediation and arbitration shall not be deemed a
waiver of any right of termination under this Joint Development Agreement and
the arbitrator is not empowered to
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act or make any award other than based solely on the rights and obligations of
the Parties prior to any such termination.
27.4 The arbitrator shall be knowledgeable in the legal and technical
aspects of this Joint Development Agreement and shall determine issues of
arbitrability but may not limit, expand or otherwise modify the terms of this
Joint Development Agreement.
27.5 The place of mediation and arbitration shall be New York City.
27.6 Each Party shall bear its own expenses but those related to the
compensation and expenses of the mediator and arbitrator shall be borne equally.
27.7 A request by a Party to a court for interim measures shall not be
deemed a waiver of the obligation to mediate and arbitrate.
27.8 The arbitrator shall not have authority to award punitive or other
damages in excess of compensatory damages and each Party irrevocably waives any
claim thereto.
27.9 The Parties, their representatives, other participants and the
mediator and arbitrator shall hold the existence, content and result of
mediation and arbitration in confidence.
28.0 PARTIAL INVALIDITY
If any paragraph, provision, or section thereof in this Joint Development
Agreement shall be found or be held to be invalid or unenforceable in any
jurisdiction in which this Joint Development Agreement is being performed, the
remainder of this Joint Development Agreement shall be valid and enforceable and
the Parties shall negotiate, in good faith, a substitute, valid and enforceable
provision which most nearly effects the Parties' intent in entering into this
Joint Development Agreement.
29.0 COUNTERPARTS
This Joint Development Agreement may be executed in two or more counterparts,
all of which, taken together, shall be regarded as one and the same instrument.
30.0 RELATIONSHIP OF PARTIES
The Parties to this Joint Development Agreement are independent contractors.
There is no relationship of agency, partnership, joint venture, employment or
franchise between the Parties with respect to the subject matter of this
Agreement. Neither Party has the authority to bind the other or to incur any
obligation on its behalf.
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31.0 INTEGRATION
This Joint Development Agreement sets forth the entire agreement and
understanding between the Parties as to the subject matter hereof and merges all
prior discussions and agreements between them. Neither of the Parties shall be
bound by any warranties, modifications, understandings or representations with
respect to the subject matter hereof other than as expressly provided herein, or
in a writing signed with or subsequent to the execution hereof by an authorized
representative of the Party to be bound thereby.
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IN WITNESS WHEREOF the Parties hereunto have entered into this Joint Development
Agreement as of the 28th day of June 2002.
CHARTERED SEMICONDUCTOR MANUFACTURING LTD.
By: /s/ Chia Song Hwee
-----------------------------------------------
Name: Chia Song Hwee
Title: President & Chief Executive Officer
Date: 28 June 2002
AGERE SYSTEMS INC.
By: /s/ Xxxx Xxxxxxx
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Name: Xxxx X. Xxxxxxx
Title: Chief Executive Officer
Date: 27 June 2002
AGERE SYSTEMS SINGAPORE PTE LTD.
By: /s/ Xxxx Xxxxx
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Name: Xxxx Xxxxx
Title: Managing Director
Date: 28 June 2002
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ATTACHMENT A
DEVELOPMENT PLANS
Note: The initial 0.13um Development Plan is attached as Attachment A-1-1.
Any revised Development Plan shall supercede the earlier applicable Attachment,
and shall be attached to this Joint Development Agreement and successively
numbered. For example, revised 0.13um Development Plan(s) will be named
"Attachment A-1-2", "Attachment A-1-3", etc. The 90nm Development Plan(s) will
be named as "Attachment A-2-1", "Attachment A-2-2", "Attachment A-2-3", etc.
These technologies are defined principally by the design rules, and the
transistor options, with associated electrical characteristics. Corresponding
documentation and specification are defined in the list of foreground
deliverables, applicable to all three generations.
The development plan for each xxxx xxxx technology node (0.13um and 90nm) is
outlined by the High Level Milestones and Foreground Deliverables. The
qualification of the xxxxxxxxxxxx modules is expected to be completed concurrent
with the xxxx xxxxx. The qualification of the xxxxx xxxxxx is expected to be
completed within five (5) months of the xxxx xxxxx. The xxxx xxxx module will be
completed on a mutually agreed date.
The same elements will be defined for 90nm technology as soon as practical
(e.g., 90nm by 1Q01). These defining elements will be approved by the Steering
and Executive Committees, and then attached to this document.
The Parties will in good faith negotiate and agree to a detailed workplan for
the joint development of each Process (the "Workplan"). The Workplan shall be a
detailed elaboration of the Development Plan and shall be approved and signed
off by the Executive Committee not later than the date of execution of this
Joint Development Agreement. All subsequent amendments to the Workplan shall be
approved by the Executive Committee.
Minimum monthly manpower commitment by both Parties to the Development Plan is
defined in the Manpower Plan.
Development of Processes is deemed successful and complete when all deliverables
defined in Attachment D are attained.
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MANPOWER PLAN
(Headcount)
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TECHNOLOGY Q499 Y2000 Y2001 Y2002 Y2003 Y2004
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ATTACHMENT A-1-1
(0.13UM DEVELOPMENT PLAN)
For the 0.13um CMOS technology, the high level design rules, transistor
options, milestones, and foreground deliverables follows:
DESIGN RULES
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Technology 0.13um Preliminary
xxxxx 90nm
xxx
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0.13UM TRANSISTOR OPTIONS
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0.13UM HIGH LEVEL PROGRAM MILESTONES
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FOREGROUND DELIVERABLES
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The following are the deliverables necessary to complete the Development Plan.
The date and responsibility for delivery of each such deliverable must be
determined by mutual agreement of the Parties and will be reflected in the
Workplan.
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1. TECHNOLOGY
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1.1. ELECTRICAL (EP) SPECIFICATION AND TEST PROGRAM
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1.2. SCRIBELINE TEST STRUCTURES
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1.3. DESIGN RULES AND MODELS
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1.4. RUNFLOW AND RECIPE SPEC AND PROCESS CHARACTERIZATION REPORTS
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1.5. EQUIPMENT SPECIFICATION
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1.6. QUALIFICATION PLAN AND VEHICLE
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2. DEFECT DENSITY
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2.1. TOOLING ( MASK) METHODOLOGY
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2.2. YIELD ENHANCEMENT PROGRAM
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3. PROGRAM MANAGEMENT
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3.1. RESOURCE PROVISIONS AND MILESTONES
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4. EDA
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4.1. DEVICE CHARACTERIZATION AND LAYOUT
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7
ATTACHMENT A-2-1
(90NM DEVELOPMENT PLAN)
To be attached following approval of Executive Committee.
DESIGN RULE SUMMARY
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TABLE II A: 90NM TRANSISTOR OPTIONS
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TABLE II B : 90nm LOW POWER TRANSISTOR OPTIONS
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MILESTONES FOR THE 90NM PROCESS.
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ATTACHMENT B
TOTAL PROJECT COST
xxxxxx
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ATTACHMENT C
INFORMATION FOR RELEASE TO THIRD PARTIES
1. Design Information-Per Design Manual
1.1. Design Rules (including reliability layout rules)
1.2. Layout Description
1.3. ESD, Latch-up, Pad Rules
1.4. DRC, ERC, LVS, LPE
2. Electrical Targets Information-Per Design Manual
2.1. RAM Cell Transistor
2.2. MOS Transistors
2.3. Other Devices (Bipolar Devices, Diode, Resistor, Capacitor)
2.4. Parasitic Resistor and Capacitor
2.5. SPICE Models and Device Characterization reports
2.6. Interconnect Delay Models
3. Process Information-Per Design Manual
3.1. Simple Process Flow
3.2. Electrical Test Specification
3.3. Qualification report
4. Mask Generation-Per Specific Mask Generation Information
4.1. Mask Specification
4.2. Bias Table
4.3. Mask Layer Generation Equation-Per Design Manual
4.4. Tooling Methodologies like Dummy Pattern Algorithm, OPC and phase
shift procedures
5. Information for Test and Sort Capability
5.1. Transfer vehicle Program files
5.1.1. Main program file for pre DS
5.1.2. Socket file
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5.1.3. All micro pattern files
5.1.4. Insert to pattern file (SDEF File)
5.1.5. Probe area file
5.1.6. Scramble file
5.2. Device Test and Design Documentation
5.2.1. Wafer Test Spec
5.2.2. Wafer Test Pattern Description
5.2.3. Wafer Test Timing Diagram
5.2.4. Wafer Test Flow
5.2.5. Test Commands Description
5.2.6. IPL mode description
5.3. Probe card document
5.3.1. Pads size
5.3.2. Pad to Pad pitch size
5.3.3. Pad x, y coordinates table
5.4. Final Test
5.4.1. Final Test program
5.4.2. Final Test Spec
5.4.3. Product Test Flow
5.4.4. Test board pin connection
5.4.5. Test board load circuit
5.4.6. Device data Sheet
5.4.7. Bonding diagram
5.5. Burn-In Test
5.5.1. Product level Burn-In criteria
5.5.2. Burn-In mode Sequence
5.5.3. Burn-In Cycle
5.5.4. Burn-In Testing Waveform
5.5.5. Burn-In Board Waveform
5.5.6. HIFIX wiring, socket file, tray drawing
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ATTACHMENT D
COMPLETION OF PROJECT FOR 0.13UM AND 90NM PROCESSES
A Process is deemed to be successfully completed when a receiving facility's
qualification achieves the following:
(a) the electrical and physical specifications of such Process achieved at the
receiving facility match the electrical and physical specifications of such
Process achieved in the development facility, and
(b) the reliability performance of such Process at the receiving facility is the
same as or better than the reliability performance of such Process achieved in
the development facility. The reliability requirement at the development
facility shall be
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ATTACHMENT E
PROCEDURE FOR JOINT SELECTION OF TOOL SET AND MATERIALS FOR
JOINT DEVELOPMENT OF THE PROCESSES
1.0 PURPOSE
This Attachment E describes the procedure for review and final approval by the
Executive Committee of new toolset and materials purchased or evaluated under
the Joint Development Agreement. Under this procedure Chartered and Agere will
establish joint tool and materials selection teams for the purpose of
identifying toolset and materials for maximum manufacturing efficiency and
lowest cost of ownership of the jointly developed Processes. Process
extendibility to cover the 0.13um and 90nm Processes will also be a key
factor in the selection criteria.
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2.0 SCOPE
This Attachment E applies to all new processing tools and materials, including
metrology tools, purchased or evaluated by either Party for the purpose of
development and eventual manufacturing of the jointly developed Processes. Tool
evaluations performed as part of a joint development agreement with a supplier
are covered under this procedure.
3.0 DEFINITION
3.1 TOC Tool of choice
3.2 MOC Material of choice
3.3 JDP Joint development program
3.4 EST Equipment/tool selection team
3.5 CST Commodities selection team
3.6 SC Steering Committee
3.7 EC Executive Committee
3.8 COO Cost of ownership
4.0 REFERENCE DOCUMENTS
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5.0 RESPONSIBILITIES
REQUESTOR (AGERE OR CHARTERED):
- The requestor shall inform the SC of any potential tool/material for
purchase or evaluation.
- The requestor shall provide all the necessary data such as acceptance
criteria, COO etc. to enable the EST/CST to make a tool/material
recommendation to the SC.
- The requestor is responsible for the execution of tool and materials
evaluations and reporting of results back to the joint EST/CST.
AGERE:
- Agere is to engage Chartered in any JDP agreements with suppliers on
potential tools and materials that may affect the Chartered or Agere
TOC/MOC to be used in jointly developed Processes.
- Agere shall inform Chartered of any changes to their TOC/MOC.
CHARTERED:
- Chartered is to engage Agere in any JDP agreements with suppliers on
potential tools and materials that may affect the Chartered or Agere
TOC/MOC to be used in jointly developed Processes.
- Chartered shall inform Agere of any changes to their TOC/MOC.
EST:
- The EST leads the selection process for the proposed tool and delivers a
recommendation to the SC.
CST:
- The CST leads the selection process for the proposed materials and delivers
a recommendation to the SC.
SC:
- The SC shall nominate the EST/CST team leader for the purpose of
coordinating and reporting to the SC on the progress and conclusions of the
joint tool/material selection activities.
- The SC shall make a recommendation based on the output of the EST/CST
activity to the EC.
EC:
- The EC has the authority for final approval of tools and materials for
joint development of the Processes.
CHARTERED-AGERE CONFIDENTIAL
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6.0 PROCEDURES
The EST and CST teams are formed under direction and guidance of the SC to
select tools and materials for development and eventual manufacturing of the
jointly developed Processes. The composition of the teams is described below and
may be varied subject to the approval and recommendations of the SC.
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ORGANIZATION/ DEPARTMENT REPRESENTED EST CST
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6.1 EST CRITERIA FOR TOOL AND MATERIALS SELECTION
Attached below is a summary of the selection criteria to be used by the EST for
the purpose of joint tool selection. Further details of the procedures and
decision analysis can be found in xxxxx. Weightages attached to each of the
selection criteria may vary in accordance with the EST team recommendation and
is subject to the approval of the SC.
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REQUESTER'S INPUT CRITERIA WEIGHTAGE VENDOR A TOC
SOURCE (see note 1)
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xxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxx xxx
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xxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxx xxx
xxxxxxxxxx
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xxxxxxxxxxxxx xxxxxxxxxxx xxx
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xxxxxxxxxxxxx xxxxxxxxxxxxx xxx
xxxxxxxxxx
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xxxxxxxxxxxxx xxxxxxx xxx
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xxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxx xxx
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xxxxxxxxxxxxx xxxxxxxxxxxxxx xxx
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xxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxx xxx
xxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxx
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Note 1.
WEIGHTAGES MAY VARY IN ACCORDANCE WITH THE EST TEAM RECOMMENDATION AND ARE
SUBJECT TO THE APPROVAL OF THE SC.
There are 4 parts to the procedures for purchase and/or evaluation of new tools
and materials:
PART A: COMPATIBILITY OF THE PROPOSED TOOL/MATERIAL TO THE CURRENT CHARTERED
OR AGERE TOC/ MOC.
PART B: EST AND CST PROPOSAL TO SC
PART C: TOOL/MATERIAL EVALUATION PHASE
PART D: SC FINAL REVIEW
The accompanying flowchart summarizes the process flow and descriptions of each
of the procedures (parts A to D) are subsequently provided in Sections 6.2 and
6.3.
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[CHART]
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6.2 PROCEDURE FOR PROPOSED TOOL EVALUATION AND PURCHASE
Table F(i) gives a description of the current TOC from Chartered. Due to many
factors (technology and commercial), differences in the TOC for a given Process
may exist between the Parties. Some of the key differences with the Agere TOC
are highlighted in table F(i). The purpose of the procedure below is to enable
the Parties to converge on a common toolset for development and manufacturing of
the jointly developed Processes. In some cases convergence may not be possible
(e.g. due to existing tools used at the Parties manufacturing sites) in which
case the Parties will engage in Process and module matching in advance of the
transfer to manufacturing in Singapore (refer to the Tools of Record as set out
in the Workplan described in Attachment A).
PART A: COMPATIBILITY OF THE PROPOSED TOOL TO THE CURRENT TOC
6.2.1 If the proposed tool is not listed in the TOC list in Table F(i), an
appropriate joint EST will be formed in order to evaluate and make
recommendations to the SC.
6.2.2 If the proposed tool is listed in the TOC list in table F(i), then
the proposal goes directly to the SC and EC for recommendation to
purchase or lease.
6.2.3 The SC shall be notified of any changes to the Chartered or Agere
TOC as given in Table F(i) by the EST.
PART B: EQUIPMENT SELECTION TEAM PROPOSAL TO SC
6.2.4 A joint EST will be formed comprising team members from Agere and
Chartered as described in section 6.0 of this Attachment.
6.2.5 The SC will appoint an EST team leader to co-ordinate and report on
the activities of the EST.
6.2.6 The Chartered or Agere requestor is to provide all the available
tool acceptance data as inputs to the EST selection process.
6.2.7 The proposed tool will be given the same weightage in comparison to
the other tools during the selection process.
6.2.8 The EST is to perform a side-by-side tool comparison based on the
data supplied by Agere as well as Chartered.
6.2.9 The EST is to make a recommendation to the SC.
6.2.10 If approval is not granted, the SC issues a written notice stating
the reason for rejection.
6.2.11 If approval is granted, the EST can proceed to parts C or D as
described below.
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PART C: TOOL EVALUATION PHASE
6.2.12 The EST is to select the site of evaluation and coordinate the
on-site evaluation task force for the proposed tool.
6.2.13 The EST is to set the timeline to verify the Process acceptance
criteria as stipulated by the requestor for the new tool in question
as well as the hardware reliability.
6.2.14 EST makes a final recommendation to the SC based on the on-site
evaluation.
PART D: STEERING COMMITTEE FINAL REVIEW
6.2.15 The SC reviews the final recommendation from the EST or a request to
purchase a TOC as listed in Table F(i).
6.2.16 If the SC does not accept the recommendation of the EST, the SC
issues a written notice stating the reason for rejection.
6.2.17 If the SC accepts the recommendation of the EST, the SC makes a
proposal to the EC to update the TOC.
6.2.18 In the case of a request to purchase a TOC,) and the Parties have a
different TOC listed in Table F(i), the SC may recommend a joint EST
be formed to execute phases B and C above so that a convergent TOC
can be identified.
6.2.19 The decision of the SC to purchase or lease tools is subject to the
final approval of the EC.
6.3 PROCEDURES FOR NEW MATERIAL EVALUATION AND PURCHASE
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxx.
PART A: COMPATIBILITY OF THE PROPOSED MATERIAL TO THE CURRENT MOC
6.3.1 If the proposed material is not listed in the MOC list in Table
F(ii), an appropriate joint CST will be formed in order to evaluate
and make recommendations to the SC.
6.3.2 If the proposed material is listed in the MOC list in Table F(ii),
then the proposal goes straight to the SC and EC for recommendation
to purchase.
6.3.3 The SC shall be notified of any changes to the Chartered or Agere
MOC as given
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in Table F (ii) by the CST.
PART B: COMMODITIES SELECTION TEAM PROPOSAL TO SC
6.3.4 A joint CST will be formed comprising team members from Agere and
Chartered as described in section 6.0 of this Attachment.
6.3.5 The SC will appoint a CST team leader to co-ordinate and report on
the activities of the CST.
6.3.6 The Chartered or Agere requestor is to provide all the available
material acceptance data as inputs to the CST selection process.
6.3.7 The proposed material will be given the same weightage in comparison
to the other materials during the selection process.
6.3.8 The CST is to perform a side-by-side material comparison based on
the data supplied by Agere as well as Chartered.
6.3.9 The CST is to make a recommendation to the SC.
6.3.10 If the approval is not granted, SC issues a written notice stating
the reason for rejection.
6.3.11 If approval is granted, the CST can proceed to parts C or D as
described below.
PART C: MATERIAL EVALUATION PHASE
6.3.12 The CST is to select the site for evaluation and to coordinate the
on-site evaluation task force for the proposed new material.
6.3.13 The CST is to set the timeline to verify the Process acceptance
criteria as stipulated by the requestor for the new material.
6.3.14 CST makes a final recommendation to the SC based on the on-site
evaluation.
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PART D: STEERING COMMITTEE FINAL REVIEW
6.3.15 The SC reviews the final recommendation from the CST.
6.3.16 If the SC does not accept the recommendation of the CST, the SC
issues a written notice stating the reason for rejection.
6.3.17 If the SC accepts the recommendation of the CST, the SC makes a
proposal to the EC to update the MOC.
6.3.18 The SC may recommend an appropriate CST be formed for the purpose of
identifying a convergent MOC if the Parties MOC, as listed in
Table F(ii), is different.
6.3.19 The decision of the SC to purchase materials is subject to the final
approval of the EC.
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TABLE F(i) (TOC)
---------------------------------------------------------------------------------------------------
AL FLOW CHARTERED AGERE
---------------------------------------------------------------------------------------------------
PROCESS MODULES SUPPLIER MODEL AGERE TOC DIFFERENCES
---------------------------------------------------------------------------------------------------
CLEAN TECH
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxxxxx xxx xxxx xxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxx xxxx xxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxx xxx xxxx xxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxx xxx xxxx xxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxx xxxx xxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxxx xxx xxxx xxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxx xxxx xxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxx xxxx xxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxx xxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxx xxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxx xxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxx xxxxxxx xxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxx xxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxx xxxxx xxxxx xxxx
---------------------------------------------------------------------------------------------------
ETCH
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxx xxxx xxxxxxxxxx xxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxx xxxx xxxxxxxxxx xxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxx xxxx xxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxx xxxx xxxxxxxxxx xxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxxx xxxxxx xxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxx xxxx xxxxxxxxxx xxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxx xxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxxx xxxxxxxxxx xxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxxx xxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxxx xxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxxx xxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxxx xxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxxx xxxxxxxxxx
---------------------------------------------------------------------------------------------------
DIFFUSION
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxx xxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxx xxx xxxxx xxxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxx xxx xxxxx xxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxx xxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxx xxxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
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AL FLOW CHARTERED AGERE
---------------------------------------------------------------------------------------------------
xxxxx xxxxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxx xxx xxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxx xxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxx
xxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxx xxxxxx xxxxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
RTA
---------------------------------------------------------------------------------------------------
xxxxxxxxxx xxxx xxxxxxxxxx xxxxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx
xxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxx xxxxx xxxxxxxx
---------------------------------------------------------------------------------------------------
IMPLANT
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxx xxxxxxxxxxx xxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxxxxxxxx xxxxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxx xxxxxxxxx xxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxx xxxxxxxxxxxxx xxxx
---------------------------------------------------------------------------------------------------
xxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
CMP
---------------------------------------------------------------------------------------------------
xxxxxxx xxxxxxx xxxxxxx xxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxxx xxxx xxxx
---------------------------------------------------------------------------------------------------
xxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
LITHO
---------------------------------------------------------------------------------------------------
xxxxx xxxxxxx xxxxxxxxxxxx xxxxxxx
---------------------------------------------------------------------------------------------------
xxxx xxxxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxx xxxxxxx xxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxx xxxxxxx xxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxx xxxxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxx xxxxxxx xxxxxx xxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
DCVD
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxx xxxxx xxxxx xxxxxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxx xxxxx xxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxxxx xxxxx xxxxx xxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxxxx xxxxx x
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AL FLOW CHARTERED AGERE
---------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
PVD
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxxxx xxxxx xxxxxxxxxxxxx
xxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx
xxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxx xxxxx xxxxxxxxxxxxx
xxx
---------------------------------------------------------------------------------------------------
MCVD
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
DEFECT METROLOGY
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxx xxxxx xxxxxxxxx xxxxxxxxxxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxxxxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
xxxxxxxx xxxxx xxxxx xxxxxxxxxxxxx
xxxxxx
---------------------------------------------------------------------------------------------------
xxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------
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--------------------------------------------------------------------------------------------------
CU BEOL CHARTERED AGERE
--------------------------------------------------------------------------------------------------
PROCESS MODULES SUPPLIER MODEL
--------------------------------------------------------------------------------------------------
CLEAN TECH
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx x x
--------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxx xxxxxxxxxxx
--------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxxxx xxxxx xxxxxxxxx
--------------------------------------------------------------------------------------------------
ETCH
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxxxxxxxx xxx xxxxxxxxxxxxxxxxxxxx
xxxxx
--------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxxx xxxxxxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxx
xxxxx
--------------------------------------------------------------------------------------------------
xxxxxxxxxxxxx xxxxxxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxx
xxxxx
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxxxxxxxx xxxxx xxxxxxxxxxxxx
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxx xxxxx xxxxxxxxxxxxx
--------------------------------------------------------------------------------------------------
xxxxxx xxxxxxxx xxxxx xxxxxxxxxxxxx
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxxx xxxxxxxxx xxxxxxxxx
--------------------------------------------------------------------------------------------------
DIFFUSION
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx
--------------------------------------------------------------------------------------------------
CMP
--------------------------------------------------------------------------------------------------
xxx xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx x x
--------------------------------------------------------------------------------------------------
LITHO
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxxxxx xxxxxxxx
--------------------------------------------------------------------------------------------------
DCVD
--------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxx xxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx
--------------------------------------------------------------------------------------------------
xxxxxxxx xxxxxxxxxxx
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxxx xxxxxxxxxxx
--------------------------------------------------------------------------------------------------
xxxxxxx xxxxxxxxxxx xxxxxxxxxxx
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxxxxxxxx
--------------------------------------------------------------------------------------------------
PVD
--------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxxxxxx xxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx
xxxxxxx
--------------------------------------------------------------------------------------------------
xxxxx xxxxxxx xxxxxxxxxxx xxxxxxxxxxx
--------------------------------------------------------------------------------------------------
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TABLE F(II) (MOC)
------------------------------------------------------------------------------------------------------------
MOC CHARTERED AGERE
------------------------------------------------------------------------------------------------------------
COMMODITY TYPES SUPPLIER TYPE SUPPLIER TYPE
------------------------------------------------------------------------------------------------------------
LITHO
------------------------------------------------------------------------------------------------------------
xxxxxxxxxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
xxxxxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
xxxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
xxxxxxxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
CMP
------------------------------------------------------------------------------------------------------------
xxxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
xxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
PVD
------------------------------------------------------------------------------------------------------------
xxxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
DCVD
------------------------------------------------------------------------------------------------------------
xxxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
GENERAL - GAS
------------------------------------------------------------------------------------------------------------
xxxxxxxxxxxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
xxxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
GENERAL - CHEMICAL
------------------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxxxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
xxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxx xxxxx xxxxx xxxxx
xxxxxxxxx
------------------------------------------------------------------------------------------------------------
GENERAL - SUBSTRATE
------------------------------------------------------------------------------------------------------------
xxxxx xxxxx xxxxx xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
Note1: details to be provided by end 8/00.
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