FAIRCHILD ASSEMBLY SERVICES AGREEMENT
CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN DELETED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT.
THIS ASSEMBLY SERVICES AGREEMENT ("Agreement") is dated and made effective
this 11th day of March, 1997 (the "Effective Date") by and between NATIONAL
SEMICONDUCTOR CORPORATION, a Delaware corporation, having its principal place of
business at 2900 Semiconductor Drive, Santa Clara, California 95052-8090
("National") and [FAIRCHILD SEMICONDUCTOR CORPORATION], a Delaware corporation,
having its principal place of business at 333 Western Avenue, South Portland,
Maine 04106 ("Fairchild"), National and/or Fairchild may be referred to herein
as a "Party" or the "Parties" as the case may require.
WITNESSETH:
WHEREAS, the Parties have entered into a certain Asset Purchase Agreement
(hereinafter referred to as the "Purchase Agreement") under which Fairchild is
acquiring certain of the assets of National's Logic, Memory and Discrete Power
and Signal Technologies Business Units as historically conducted and accounted
for (including Flash Memory, but excluding Public Networks, Programmable
Products and Mil/Aero Logic Products) (the "Business"); and
WHEREAS, pursuant to the transactions contemplated in the Purchase
Agreement, Fairchild is acquiring National's manufacturing facilities in South
Portland, Maine (excluding the eight-inch fab and related facilities), West
Jordan, Utah, Penang, Malaysia and Cebu, the Philippines; and
WHEREAS, after the closing of the transactions contemplated by the
Purchase Agreement Fairchild will own or lease and operate the Facilities; and
WHEREAS, National has been performing assembly, test and other back-end
services at the Facilities; and
WHEREAS, National is conveying to Fairchild certain intellectual property
rights pursuant to the Technology Licensing and Transfer Agreement between
National and Fairchild, of even date herewith; and
WHEREAS, National and Fairchild desire to enter into an agreement under
which Fairchild will continue to provide certain services to National following
the closing of the transactions contemplated by the Purchase Agreement; and
WHEREAS, National and Fairchild recognize that the prices for assembly and
test services to be provided by Fairchild to
National as set forth herein are determined based on the collateral transactions
and ongoing relationship between the Parties as expressed in the Purchase
Agreement, Revenue Side Letter between National and Fairchild of even date
herewith (the "Revenue Side Letter") and the other Operating Agreements (as
defined in Paragraph 9.1); and
WHEREAS, the execution and delivery of this Agreement is a condition
precedent to the closing of the transactions contemplated by the Purchase
Agreement.
NOW, THEREFORE, in furtherance of the foregoing premises and in
consideration of the mutual movements and obligations hereinafter set forth, the
Parties hereto, intending to be legally bound hereby, do agree as follows:
1.0 DEFINITIONS
1.1 "Best Efforts" shall require that the obligated Party make a
diligent, reasonable and good faith effort to accomplish the
applicable objective. Such obligation, however, does not require any
material expenditure of funds or the incurrence of any material
liability on the part of the obligated Party, which expenditure or
liability is unreasonable in light of the related objective, nor
does it require that the obligated Party act in a manner which would
otherwise be contrary to prudent business judgment or normal
commercial practices in order to accomplish the objective. The fact
that the objective is not actually accomplished is no indication
that the obligated Party did not in fact utilize its Best Efforts in
attempting to accomplish the objective.
1.2 "Confidential Information" shall have the meaning set forth in
Paragraph 16.1 below.
1.3 "Devices" shall mean National integrated circuits to be assembled
and/or tested by Fairchild hereunder.
1.4 "Die" shall mean the silicon die material, consigned by National to
Fairchild in wafer form, from which Devices are assembled.
1.5 "Effective Date" shall mean the date first set forth above.
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1.6 "Facilities" shall mean the existing assembly facilities located at
Penang, Malaysia and Cebu, the Philippines, transferred to Fairchild
from National pursuant to the Purchase Agreement.
1.7 "Fairchild Assured Capacity" shall mean the capacity of assembly
and/or test services that Fairchild agrees to supply National
pursuant to Section 7 below.
1.8 "Fairchild" shall mean Fairchild Semiconductor Corporation and its
Subsidiaries.
1.9 "Mix" shall mean the allocation within a forecast by package type
and pin count.
1.10 "National" shall mean National Semiconductor Corporation and its
Subsidiaries.
1.11 "Specifications" shall mean National drawings, criteria and other
documented specifications in effect as of the Effective Date,
including, but not limited to, build procedures, buy-off criteria,
quality and reliability parameters, material specifications, marking
specifications, test settings, program specifications, load board
schematics, facilities and environmental SOP's, handling
requirements, lot and/or die traceability and processes for
manufacturing Devices.
1.12 "Subsidiary" shall mean any corporation, partnership, joint venture
or similar entity more than fifty percent (50%) owned or controlled
by a Party hereto, provided that any such entity shall no longer be
deemed a Subsidiary after such ownership or control ceases to exist.
1.13 "Technology Licensing and Transfer Agreement" shall mean the
agreement of even date herewith between the Parties under which
National is licensing and transferring certain intellectual property
rights to Fairchild.
2.0 INTELLECTUAL PROPERTY
2.1 The provisions of the Technology Licensing and
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Transfer Agreement will govern all issues related to the respective
intellectual property rights of the Parties hereunder, to include
but not be limited to, use rights, ownership rights and
indemnification obligations.
2.2 All assembly and test services shall take place at the Facilities.
Fairchild shall not transfer any National-owned intellectual
property or other National technical information outside of the
Facilities or to any other site, other than as may be permitted
under the Technology Licensing and Transfer Agreement.
3.0 SHIPPING AND BUILD ORDER REQUIREMENTS
3.1 Fairchild shall provide backgrind, assembly and test services
hereunder in accordance with the Specifications. Such services shall
be performed at those Facilities at which they have historically
been performed.
3.2 National will, at "No Charge", deliver and consign to Fairchild at
the Facilities its electrically probed wafers or wafers requiring
wafer probe. Any reject die on said wafers shall be ink marked or
identified by National in a manner acceptable for use with
Fairchild's pattern recognition equipment. Wafers and other
materials shall be packed in accordance with the Specifications.
3.3 Fairchild shall be responsible for forecasting and ordering lead
frames, bonding wire, molding compound and other raw materials
required for assembly in sufficient quantities and with sufficient
lead times to meet its obligations under the Fairchild Assured
Capacity. Fairchild shall also be responsible for maintenance and
replacement costs associated with manufacturing tools and equipment
(e.g., mold die, trim and form die, lead frame tooling), except for
lead frame tooling which is currently owned by and used exclusively
for National.
3.4 National shall supply an appropriate bonding diagram and test
program (if applicable) for each Device to be assembled per the
Specifications.
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3.5 Fairchild hereby agrees to verify the Die count and advise National
of any variance greater than one percent (1%).
3.6 National will provide Fairchild with a "Lot Traveler" in a format
identical to that in effect on the Effective Date and outlined in
Exhibit A hereto for the first six (6) months after the Effective
Date. After that period of time, Fairchild may utilize its own
Traveler, provided its form has previously been approved in writing
by National, which approval shall not be unreasonably withheld.
3.7 Fairchild shall provide National with the following manufacturing
data in a format and pursuant to criteria and procedures agreed to
by the parties, on a monthly basis:
(a) WIP from sealing through final assembly, including finished
goods;
(b) Test yield and wafer sort yield results (if applicable);
(c) Shipping activity (description, quantity, ship date);
(d) Acknowledgment of National Die shipments as well as such other
information which National may reasonably request from time to
time; and
(e) Cycle time (if requested by National).
3.8 Fairchild shall deliver completed lots to National, packaged in
accordance with the Specifications, with the assembly run card
enclosed for each assembly lot (kit). Future traceability for a lot
(kit) shall be based solely on the run card and shall be the
responsibility of National. The assembly run card shall show the
yield for each yield point in the assembly process. By mutual
agreement of the Parties, traceability may instead be software
based, so long as such records are accessible to both Parties.
4.0 PACKAGE/PROCESS CHANGES NOTIFICATION
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4.1 If Fairchild proposes to make any change affecting the assembly
processes, materials and/or suppliers, to include, but not be
limited to, lead frame design, lead frame material, die attach
material, wire bond material, molding compound, lead plating process
or plating material, test programs or assembly procedures affecting
the Devices, Fairchild will notify National of the intended change
in accordance with Fairchild's change procedures then in effect. If
the proposed change is unacceptable to National, National and
Fairchild shall work together in efforts to resolve the problem. If
during the first thirty-nine (39) fiscal periods of this Agreement
the Parties are unable to resolve the problem, Fairchild shall not
make the proposed change. After the first 39 fiscal periods of this
Agreement, if the Parties are unable to resolve the problem,
Fairchild shall have the right to make such change upon the
provision of ninety (90) days prior written notice to National.
Notwithstanding the foregoing, however, Fairchild shall in no event
manufacture Devices other than in strict accordance with the
Specifications, or any amendments thereto, without the prior written
consent of National.
4.2 National shall provide at least fifteen (15) days prior written
notice to Fairchild of any proposed change in Die design, layout
modification, fabrication process, test programs or other changes
which may impact upon Fairchild's processing, handling or assembly
of Devices. Fairchild shall not be responsible for any assembly or
test loss incurred as a result of National's failure to provide
timely notification of such change.
4.3 National reserves the right to make changes to the Specifications
that reflect improvements, developments or other technically desired
changes in the Devices. National shall notify Fairchild of such
requested change orders and Fairchild shall respond within thirty
(30) working days regarding the feasibility, schedule and
anticipated costs of implementing such change orders. Once the
Parties have agreed in writing to the engineering changes, schedule
and prices thereof, Fairchild shall promptly take all measures
required to incorporate such change orders into the Devices.
Fairchild shall have the right to renegotiate the price and/or
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its capacity commitments hereunder if such changes will have an
adverse effect on Fairchild's assembly or test capacity.
5.0 DEVICE ACCEPTANCE/QUALIFICATION/RAMP UP
5.1 Should Fairchild agree to add new package types requested by
National, Fairchild shall utilize its Best Efforts to complete
qualification assembly of new package types as soon as possible,
including qualification lots. National shall reimburse Fairchild for
the full costs of equipment, tooling and one time start up costs
required to manufacture new packages that Fairchild will exclusively
use for National, otherwise such costs will be shared.
5.2 National shall be responsible for specifying and performing any
qualification testing deemed necessary.
5.3 Fairchild reserves the right to refuse assembly of any new Devices
which violate Fairchild internal design or processing requirements
that are introduced after the Effective Date.
5.4 Fairchild shall provide National with a preliminary ramp-up
schedule, which may be subject to subsequent reduction by Fairchild
in the event unforeseen problems are encountered by Fairchild with
yields, process, capacity support, quality/reliability or other
product or process features. Fairchild shall immediately notify
National in writing of the necessity of any such reductions.
6.0 INSPECTION, ACCEPTANCE AND WARRANTY
6.1 For those Devices not tested by Fairchild, National shall conduct
incoming acceptance tests within ten (10) days after delivery at its
test facility. Upon completion of such tests, National shall
promptly report any shortage, damage or defective Devices in any
shipment. In the case of defective Devices found by National to
exceed applicable AQL and/or PPM Limits in effect as of the
Effective Date, or as subsequently agreed in writing by the Parties,
National shall promptly ship samples of defective
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Devices to Fairchild for verification. If such testing demonstrates
that the shipment failed to meet the relevant Specifications due to
Fairchild workmanship or materials, National may at its option
either:
(a) deduct the defective Devices' purchase price from Fairchild's
invoice, in which event National shall, if requested by
Fairchild, return to Fairchild the damaged or defective
Devices at Fairchild's risk and expense,
(b) return the damaged or defective Devices to Fairchild, at
Fairchild's risk and expense, for credit, or
(c) scrap the defective Devices at Fairchild's request for credit.
6.2 Fairchild warrants that the services provided to National hereunder
shall conform to all applicable Specifications for assembly and/or
test and shall be free from defects in material and Fairchild's
workmanship. Such warranty, however, shall not apply to the design
or operation of the National supplied Die incorporated in the
Devices. This warranty is limited to a period of one (1) year from
the date of delivery to National. If, during the one year period:
(i) Fairchild is notified promptly upon discovery in writing by a
detailed description of any such defect in any Device; and
(ii) National receives a return material authorization number from
Fairchild and returns such Device to the applicable Facility
at National's expense for inspection; and
(iii) Fairchild's examination reveals that the Device is indeed
defective and does not meet the applicable Specification or is
defective in materials or Fairchild's workmanship and such
problems are not caused by accident, abuse, misuse, neglect,
improper storage, handling, packaging or installation, repair,
alteration or improper testing or use by someone other than
Fairchild
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then, within a reasonable time, Fairchild shall credit
National for such defective Device. Fairchild shall reimburse
National for the transportation charges paid by National in
returning such defective Devices to Fairchild. The performance
of this warranty shall not act to extend the one (1) year
warranty period for any Device(s) repaired or replaced beyond
that period applicable to such Devices(s) as originally
delivered.
6.3 THE FOREGOING WARRANTY CONSTITUTES FAIRCHILD'S EXCLUSIVE LIABILITY,
AND NATIONAL'S EXCLUSIVE REMEDY, FOR ANY BREACH OF WARRANTY.
FAIRCHILD MAKES AND NATIONAL RECEIVES NO WARRANTIES OR CONDITIONS ON
THE SERVICES PERFORMED HEREUNDER, EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE, AND FAIRCHILD SPECIFICALLY DISCLAIMS ANY WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
7.0 CAPACITY; VOLUME COMMITMENTS; PRODUCTION PLANNING
7.1 All planning herein will be done under National's accounting
calendar which currently divides its fiscal year into four (4) equal
fiscal quarters, each of which consists of three (3) fiscal periods.
The first two (2) periods of each quarter are of four (4) weeks in
duration and the third period is of (5) weeks duration.
7.2 Two (2) weeks prior to the end of each National fiscal period, or as
otherwise agreed by the Parties, National will provide to Fairchild
a baseline quantity of assembly starts, set forth in terms of
product family, package and pin count, for the next eight (8) fiscal
periods (the "Capacity Request"). National's initial Capacity
Request and Fairchild's Assured Capacity response formats are set
forth herein at Exhibit B.
7.3 Each fiscal period, National may make changes to the Capacity
Request in accordance with the following table, provided that the
maximum Capacity Request for each package and pin count module does
not exceed National's share of each package and pin count module's
installed equipment capacity. Any changes outside those permitted
under the following table must be by mutual consent of the Parties.
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Fiscal Periods in
the Capacity Request Permitted Changes
-------------------- -----------------
Period 1 Fixed
Period 2 +/-10%
Period 3 +/-20%
Period 4 +/-40%
Period 5 +/-40%
Period 6 +/-40%
Period 7 +/-40%
Period 8 +/-40%
7.4 National's share of a package and pin count module's installed
equipment capacity will equal the previous Fairchild Assured
Capacity for that module, plus that percentage of any excess
capacity available in the package and pin count module equal to
National's percentage of the currently utilized capacity in said
module. Installed equipment capacity by package and pin count module
is set forth herein at Exhibit C.
7.5 One (1) work week after receipt of the Capacity Request, Fairchild
shall provide National with a response to such Capacity Request, the
"Fairchild Assured Capacity". The Fairchild Assured Capacity must
guarantee the amount requested in National's latest Capacity
Request, provided that any changes to National's latest Capacity
Request are within the limits of Paragraph 7.3. Fairchild shall
utilize its Best Efforts to comply with any requests by National for
capacity above those which are permitted under Paragraph 7.3. In any
case, Fairchild shall be obligated hereunder to provide National
with the assembly starts guaranteed in the Fairchild Assured
Capacity response. The initial Fairchild Assured Capacity response
shall be the last response provided prior to the Effective Date. Set
forth below are two examples of the foregoing:
Example #1 The new Capacity Request is less than the last Fairchild
Assured Capacity response.
Period A B C D E F G H
------ - - - - - - - -
Last Capacity Request 100 100 100 100 100 100 100 100
Last Fairchild Assured Capacity 100 100 100 100 100 100 100 100
New Capacity Request 100 90 80 60 60 60 60 60
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New Fairchild Assured Capacity 100 90 80 60 60 60 60 60
Example #2 The new Capacity Request is greater than the last
Fairchild Assured Capacity response.
Period A B C D E F G H
------ - - - - - - - -
Last Capacity Request 100 100 100 100 100 100 100 100
Last Fairchild Assured Capacity 100 100 100 100 100 100 100 100
New Capacity Request 100 110 120 140 140 140 140 140
New Fairchild Assured Capacity 100 110 120 140 140 140 140 140
7.6 The timetable for the rolling eight fiscal period Capacity Request,
the Fairchild Assured Capacity response, purchase order release and
detailed Device level assembly starts request for the next fiscal
period are set forth in Exhibit D hereto.
8.0 PURCHASE ORDERS
8.1 All purchases and sales between Fairchild and National shall be
initiated by National's issuance of written purchase orders sent by
either first class mail or facsimile. By written agreement of the
Parties, purchase orders may also be sent and acknowledged by
electronic data exchange or other mutually satisfactory system. Such
"blanket" purchase orders shall be issued once per fiscal quarter
for assembly starts three (3) fiscal periods in the future. They
shall state the product family, package and pin count, and shipping
and invoicing instructions. Fairchild shall accept purchase orders
through a written or electronic acknowledgment. Within a reasonable
time after receipt of National's detailed Device level assembly
starts request for the next fiscal period, Fairchild shall provide
National with a Device delivery schedule either on a weekly basis as
assembly is started or for the assembly starts for the entire fiscal
period, as the Parties may agree in writing. The purchase orders may
utilize the first three (3) fiscal periods forecast in the eight
period rolling forecast supplied pursuant to Section 7, as the
embodiment of the purchase order for specifying the assembly starts
by package and pin count.
8.2 In the event of any conflict between the terms and conditions of
this Agreement and either Party's purchase order, acknowledgment, or
similar forms, priority shall be determined as
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follows:
(a) typewritten or handwritten terms on the face of a written
purchase order, acknowledgment or similar document or in the
main body of an electronic equivalent which have been
specifically accepted in writing by the other Party's Program
Manager;
(b) the terms of this Agreement;
(c) preprinted terms incorporated in the purchase order,
acknowledgment or similar document.
8.3 Consistent with standard practices of issuing specific Device level
details of part numbers to be assembled on a weekly or periodic
basis, National may unilaterally change the part number to be
manufactured, provided that Fairchild agrees that the change does
not negatively impact Fairchild's loadings and provided further that
there is no change in the package and pin count to be used. A change
that will negatively impact loading or alter the package and pin
count may only be directed upon Fairchild's written agreement, which
shall utilize its Best Efforts to comply with such requested change.
The specific part number detail shall be submitted by first class
mail or facsimile. By written agreement of the Parties, specific
part number detail may also be sent by electronic data exchange, or
other mutually satisfactory system.
8.4 National shall request delivery dates which are consistent with
Fairchild's reasonable lead times for each Device as indicated at
the time National's purchase order is placed. Notwithstanding the
foregoing, Fairchild shall utilize its Best Efforts to accommodate
requests by National for quick turnarounds or "hot lots", which
includes prototype lots. Hot lot cycle times shall be a 50%
reduction of standard cycle time with a $2000.00 lot charge.
8.5 Fairchild may manufacture lots of any size which satisfy the
requirements of effective manufacturing. However, National must
place order for full
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flow and prototype products in minimum lot sizes of three thousand
(3,000) Devices.
9.0 PRICING AND PAYMENT
9.1 The Parties hereby acknowledge that, as part of the collateral
transactions contemplated under the Purchase Agreement and ongoing
relationship between the Parties, they have entered into the Revenue
Side Letter under which National agrees to provide a minimum revenue
of Three Hundred Thirty Million Dollars ($330,000,000.00) to
Fairchild during the first thirty-nine (39) fiscal periods after the
Effective Date. National shall discharge its obligations under the
Revenue Side Letter by purchasing goods and services under this
Agreement, a corresponding Fairchild Foundry Services Agreement, and
a Mil/Aero Wafer and Services Agreement of even date herewith
(collectively the "Operating Agreements"). Set forth herein at
Exhibit G is the forecasted volume of assembly services that
National will purchase from Fairchild during the aforementioned
thirty-nine fiscal periods (the "Forecast Volumes"). The Forecast
Volumes are for pricing purposes under this Section 9 only and may
vary in magnitude and mix in practice, whereupon the prices
applicable to the revised magnitude and mix may also vary. The
Forecast Volumes will be reviewed and updated by the Parties every
fiscal period and shall be consistent with the principles of
manufacturing set forth in Exhibit H.
9.2 Set forth in Exhibit G hereto are the prices which National shall
pay to Fairchild for backgrind, standard assembly and test services
hereunder during the first six (6) fiscal periods of this Agreement.
The prices in Exhibit G for fiscal periods 7 through 39 are for
information purposes only and are based on the Parties' best
estimate of forecast volumes and projected costs.
9.3 The prices which National shall pay to Fairchild for background,
standard assembly and test services hereunder after the first six
(6) fiscal periods of this Agreement are set forth herein as
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Exhibit K. The pricing methodology to be followed hereafter will
depend on the Facility at which the services will be provided.
9.4 For purposes of Exhibit K, National, or any "Big 6" accounting firm
designated by National, shall have reasonable rights to audit not
more than twice each fiscal year the books and records of Fairchild
relevant to the pricing terms of this Agreement in order to come to
agreement with Fairchild with regard to Fairchild's actual
manufacturing costs.
9.5 Prices are quoted and shall be paid in U.S. Dollars. Such prices are
on an FOB ship point basis. Payment terms are net thirty (30) from
date of invoice. Miscellaneous services may be invoiced separately.
9.6 National shall pay, in addition to the prices quoted or invoiced,
the amount of any freight, insurance, special handling and duties.
National shall also pay all sales, use, excise or other similar tax
applicable to the sale of goods or provision of services covered by
this Agreement, or National shall supply Fairchild with an
appropriate tax exemption certificate.
9.7 Quoted prices are based on the use of standard Fairchild processes
and on the assumption that National's product is readily
accommodated by Fairchild's assembly/handling equipment and
processes. Any changes that must be made thereto shall result in
additional charges to National that are mutually agreed to by the
Parties.
9.8 Unless otherwise noted, quoted prices for assembly shall include
packing, marking and testing in accordance with the Specifications
for Devices that are in production as of the Effective Date. For new
Devices added after the Effective Date, pricing will reflect
specifications and any special requirements for the Devices such as
multi-insertion testing.
9.9 Should yields below historical levels be directly attributable to
Die, materials, processes or documentation provided by National,
then National
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shall be charged for the full price of Devices begun in assembly,
including handling, incurred by Fairchild in processing such units.
9.10 Should National terminate any order prior to process completion,
National shall be charged a prorated portion of the full price of
such Device subject to a negotiated adjustment, based on the process
termination point, including handling incurred by Fairchild in
processing the total quantity started in assembly.
9.11 Fairchild may invoice National for complete or partial lots (kits).
9.12 National shall in no event be required to pay prices in excess of
those charged by Fairchild for other third party customers, for
substantially similar services sold on substantially similar terms
(e.g., volume, payment terms, manufacturing criteria, contractual
commitments vs. spot buys, etc.). In the event Fairchild desires to
perform such services for other third party customers at such lower
prices, Fairchild shall immediately notify National and National
shall begin receiving the benefit of such lower price at the same
time as such other third party customer. This Paragraph 9.12 shall
not apply to the prices to be paid by National hereunder for the
first twelve (12) fiscal periods of this Agreement, or if National
fails to honor its fixed commitments under Section 7 and to the
extent that such sales by Fairchild to third party customers are
only made in an attempt to make up for any underutilization of
capacity thereby caused by National.
9.13 For assembly and test services not reflected in Exhibit G, terms
shall be on an individual purchase order basis at prices to be
negotiated by the Parties using a methodology based on that set
forth in Exhibit K.
10.0 DELIVERY; RESCHEDULING AND CANCELLATION
10.1 Fairchild shall make reasonable and diligent efforts to deliver
assembled and/or tested Devices
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on the delivery dates published to National. Any shipment made
within +/- 3 days of the shipment date(s) published to National
shall constitute timely shipment,
10.2 All Devices delivered pursuant to the terms of this Agreement shall
be suitably packed for shipment in National's specified containers,
marked for shipment to National's address set forth in the
applicable purchase order and delivered to a carrier or forwarding
agent chosen by National. Fairchild shall not be responsible for
delays in shipment resulting from National's failure to supply
Fairchild with an adequate supply of National's specified
containers. Should National fail to designate a carrier, forwarding
agent or type of conveyance, Fairchild shall make such designation
in conformance with its standard shipping practices. Shipment will
be F.O.B. shipping point, at which time risk of loss and title shall
pass to National. Shipments will be subject to incoming inspection
as set forth in Paragraph 6.1 above.
10.3 National may, with Fairchild's prior written consent, reschedule
delivery of any order of assembled and/or tested Devices once each
fiscal period.
10.4 Subject to the provisions of Section 7 hereof, National may cancel
any purchase order at least two (2) weeks prior to the commencement
of work by Fairchild without charge, provided that National
reimburses Fairchild for the cost of any unique raw materials
purchased after such purchase order has been placed, and provided
further that Fairchild had provided National with a listing of
materials it considers unique.
10.5 As of 12:01 A.M. on the Effective Date, National will consign to
Fairchild all Devices located at the Facilities upon which National
had previously commenced services but which have not yet been
completed, which Devices are termed work in process in the Purchase
Agreement and which are not purchased by Fairchild thereunder.
Unless expressly directed in writing by National otherwise,
Fairchild shall commence performing
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services hereunder to bring such Devices to a normal state of
completion. National shall pay Fairchild for the accumulated
additional processing costs, plus a twenty-five percent (25%) mark
up, for the additional servicing taking place after the Effective
Date. The provisions of Sections 6 and 11 hereof shall specifically
apply to all such Devices.
11.0 QUALITY AND YIELD PROGRAMS
11.1 Fairchild shall maintain continuous cost, quality and yield
enhancement programs throughout the term of this Agreement.
11.2 Fairchild shall support National quality programs and shall supply
to National reports and/or manufacturing data in standard Fairchild
format that are in effect and which are required as of the Effective
Date.
11.3 Fairchild hereby warrants that the Facilities currently are, and
will remain throughout the term of this Agreement, ISO9000
certified.
12.0 ON-SITE INSPECTION AND INFORMATION
12.1 Fairchild shall allow National and/or National's customers to visit
and evaluate the Facilities during normal business hours as part of
established source inspection programs, it being understood and
agreed between National and Fairchild that National must obtain the
concurrence of Fairchild for the scheduling of all such visits,
which such concurrence shall not be unreasonably withheld. It is
anticipated that these visits will not occur more than once per
quarter on average.
12.2 Upon National's written request, Fairchild will provide National
with process control information, to include but not be limited to:
SPC, yield and other detailed assembly and test quality and
reliability data and associated analyses required to support
National and National's customers quality and reliability
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programs. Except for exigent circumstances, such requests shall not
be made more than twice per year for a given category of
information.
12.3 Upon National's request and Fairchild's agreement, which shall not
be unreasonably withheld, Fairchild shall provide National engineers
with access to the Facilities to the extent necessary to perform
yield improvement and product management updates relevant to this
Agreement. National's engineers will comply with all applicable
Fairchild regulations in force at the Facilities and National hereby
agrees to hold Fairchild harmless for any damages or liability
caused by any such National engineer which are attributable to: (i)
the negligence or willful malfeasance of such engineer and (ii) any
failure to comply with Fairchild's regulations in force at the
Facilities or with applicable law.
13.0 REPORTS AND COMMUNICATIONS
13.1 Each Party hereby appoints a Program Manager whose responsibilities
shall include acting as a focal point for the technical and
commercial discussions between them related to the subject matter of
this Agreement, to include monitoring within his or her respective
company the distribution of Confidential Information received from
the other Party and assisting in the prevention of the unauthorized
disclosure of Confidential Information within the company and to
third parties. The Program Managers shall also be responsible for
maintaining pertinent records arranging such conferences, visits,
reports and other conditions as are necessary to fulfill the terms
and conditions of this Agreement. The names, addresses and telephone
numbers of the Program Managers will be communicated between the
Parties from time to time.
14.0 EXPORT CONTROL
14.1 The Parties acknowledge that each must comply with all rules and
laws of the United States government relating to restrictions on
export.
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Each Party agrees to use its Best Efforts to obtain any export
licenses, letters of assurance or other documents necessary with
respect to this Agreement.
14.2 Each Party agrees to comply fully with United States export laws and
regulations, assuring the other Party that, unless prior
authorization is obtained from the competent United States
government agency, the receiving Party does not intend and shall not
knowingly export or re-export, directly or indirectly, any wafers,
Die, Devices, technology or technical information received
hereunder, that would be in contravention of any laws and
regulations published by any United States government agency.
15.0 TERM AND TERMINATION
15.1 The term of this Agreement shall be thirty-nine (39) fiscal periods
from the Effective Date; provided, however, that the Parties shall
not less than eight (8) fiscal periods prior to the end of such
thirty-ninth (39th) fiscal period determine in good faith a
ramp-down schedule of production under this Agreement so as to
minimize disruption to both Parties at the termination of this
Agreement. If the Parties are unable to agree on the terms governing
a ramp-down, National shall be allowed to reduce its purchase
commitment by not more than twenty percent (20%) per fiscal quarter
after the initial thirty-nine (39) fiscal period term of this
Agreement. National will provide Fairchild with not less than ninety
(90) days prior written notice of any such reduction.
15.2 This Agreement may be terminated, in whole or in part, by one Party
sending a written notice to the other Party of the termination of
this Agreement, which notice specifies the reason for the
termination, upon the happening of any one or more of the following
events:
(a) the other Party is the subject of a petition filed in a
bankruptcy court of competent jurisdiction, whether voluntary
or involuntary, which petition in the event of an in-
-19-
voluntary petition is not dismissed within sixty (60) days; if
a receiver or trustee is appointed for all or a substantial
portion of the assets of the other Party; or if the other
Party makes an assignment for the benefit of its creditors; or
(b) the other Party fails to perform substantially any material
covenant or obligation, or breaches any material
representation or warranty provided for herein; provided,
however, that no right of termination shall arise hereunder
until sixty (60) days after receipt of written notice by the
Party who has failed to perform from the other Party,
specifying the failure of performance, and said failure having
not been remedied or cured during said sixty (60) day period.
15.3 Upon termination of this Agreement, all rights granted hereunder
shall immediately terminate and each Party shall return to the other
Party any property belonging to the other Party which is in its
possession, except that Fairchild may continue to retain and use any
rights or property belonging to National solely for the period
necessary for it to finish manufacturing the currently forecasted
Fairchild Assured Capacity and/or complete any production ramp-down
activity. Nothing in this Section 15 is intended to relieve either
Party of any liability for any payment or other obligation existing
at the time of termination.
15.4 The provisions of Section 2, 14, 16 and Paragraphs 6.2, 6.3, 17.5
and 17.8 shall survive the termination of this Agreement for any
reason.
16.0 CONFIDENTIALITY
16.1 For purposes of this Agreement, "Confidential Information" shall
mean all proprietary information, including National and/or
Fairchild trade secrets relating to the subject matter of this
Agreement disclosed by one of the Parties to the other Party in
written and/or graphic form and originally designated in writing by
the
-20-
disclosing Party as Confidential Information or by words of similar
import, or, if disclosed orally, summarized and confirmed in writing
by the disclosing Party within thirty (30) days after said oral
disclosure, that the orally disclosed information is Confidential
Information.
16.2 Except as may otherwise be provided in the Technology Licensing and
Transfer Agreement, each Party agrees that it will not use in any
way for its own account, or for the account of any third party, nor
disclose to any third party except pursuant to this Agreement, any
Confidential Information revealed to it by the other Party. Each
Party shall take every reasonable precaution to protect the
confidentiality of said information. Each Party shall use the same
standard of care in protecting the Confidential Information of the
other Party as it normally uses in protecting its own trade secrets
and proprietary information.
16.3 Notwithstanding any other provision of this Agreement, no
information received by a Party hereunder shall be Confidential
Information if said information is or becomes:
(a) published or otherwise made available to the public other than
by a breach of this Agreement;
(b) furnished to a Party by a third party without restriction on
its dissemination;
(c) approved for release in writing by the Party designating said
information as Confidential Information;
(d) known to, or independently developed by, the Party receiving
Confidential Information hereunder without reference to or use
of said Confidential Information; or
(e) disclosed to a third party by the Party transferring said
information hereunder without restricting its subsequent
disclosure and use by said third party.
-21-
16.4 In the event that either Party either determines on the advice of
its counsel that it is required to disclose any information pursuant
to applicable law or receives any demand under lawful process to
disclose or provide information of the other Party that is subject
to the confidentiality provisions hereof, such Party shall notify
the other Party prior to disclosing and providing such information
and shall cooperate at the expense of the requesting Party in
seeking any reasonable protective arrangements requested by such
other Party. Subject to the foregoing, the Party that receives such
request may thereafter disclose or provide information to the extent
required by such law (as so advised by counsel) or by lawful
process.
17.0 GENERAL
17.1 AMENDMENT: This Agreement may be modified only by a written document
signed by duly authorized representatives of the Parties.
17.2 FORCE MAJEURE: A Party shall not be liable for a failure or delay in
the performance of any of its obligations under this Agreement where
such failure or delay is the result of fire, flood, or other natural
disaster, act of God, war, embargo, riot, labor dispute,
unavailability of raw materials or utilities (provided that such
unavailability is not caused by the actions or inactions of the
Party claiming force majeure), or the intervention of any government
authority, providing that the Party failing in or delaying its
performance immediately notifies the other Party of its inability to
perform and states the reason for such inability.
17.3 ASSIGNMENT: This Agreement may not be assigned by any Party hereto
without the written consent of the other Party; provided that
Fairchild may assign its rights but not its obligations hereunder as
collateral security to any bona fide financial institution engaged
in acquisition financing in the ordinary course providing financing
to consummate the transactions
-22-
contemplated by the Purchase Agreement or any bona fide financial
institution engaged in acquisition financing in the ordinary course
through whom such financing is refunded, replaced, or refinanced and
any of the foregoing financial institutions may assign such rights
in connection with a sale of Fairchild or the Business in the form
then being conducted by Fairchild substantially as an entirety.
Subject to the foregoing, all of the terms and provisions of this
Agreement shall be binding upon, and inure to the benefit of, and
shall be enforceable by, the respective successors and assigns of
the Parties hereto.
17.4 COUNTERPARTS: This Agreement may be executed simultaneously in two
or more counterparts, each of which shall be deemed an original and
all of which together shall constitute but one and the same
instrument.
17.5 CHOICE OF LAW: This Agreement, and the rights and obligations of the
Parties hereto, shall be interpreted and governed in accordance with
the laws of the State of California, without giving effect to its
conflicts of law provisions.
17.6 WAIVER: Should either of the Parties fail to exercise or enforce any
provision of this Agreement such failure shall not be construed as
constituting a waiver or a continuing waiver of its rights to
enforce such provision or right or any other provision or right.
Should either of the Parties waive any provision or right under this
Agreement, such waiver shall not be construed as constituting a
waiver of any other provision or right.
17.7 SEVERABILITY: If any provision of this Agreement or the application
thereof to any situation or circumstance shall be invalid or
unenforceable, the remainder of this Agreement shall not be
affected, and each remaining provision shall be valid and
enforceable to the fullest extent.
17.8 LIMITATION OF LIABILITY: IN NO EVENT SHALL EITHER PARTY BE LIABLE
FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES
RESULTING
-23-
FROM THE OTHER PARTY'S PERFORMANCE OR FAILURE TO PERFORM UNDER THIS
AGREEMENT, OR THE FURNISHING, PERFORMANCE, OR USE OF ANY GOODS OR
SERVICES SOLD PURSUANT HERETO, WHETHER DUE TO BREACH OF CONTRACT,
BREACH OR WARRANTY, NEGLIGENCE OR OTHERWISE, REGARDLESS OF WHETHER
THE NONPERFORMING PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES OR NOT.
17.9 EFFECT OF HEADINGS: The headings and sub-headings contained herein
are for information purposes only and shall have no effect upon the
intended purpose or interpretation of the provisions of this
Agreement.
17.10 INTEGRATION: The agreement of the Parties, which is composed of this
Agreement and the Exhibits hereto and the documents referred to
herein, constitutes the entire agreement and understanding between
the Parties with respect to the subject matter of this Agreement and
integrates all prior discussions and proposals (whether oral or
written) between them related to the subject matter hereof.
17.11 PUBLIC ANNOUNCEMENT: Prior to the closing of the transactions
contemplated under the Purchase Agreement, neither Fairchild nor
National shall, without the approval of the other Party hereto, make
any press release or other public announcement concerning the terms
of the transactions contemplated by this Agreement, except as and to
the extent that any such Party shall be so obligated by law, in
which case the Party shall use its Best Efforts to advise the other
Party thereof and the Parties shall use their Best Efforts to cause
a mutually agreeable release or announcement to be issued; provided
that the foregoing shall not preclude communications or disclosures
necessary to (a) implement the provisions of this Agreement or (b)
comply with accounting, securities laws and Securities and Exchange
Commission disclosure obligations. Fairchild shall provide National
with a reasonable opportunity to review and comment on any
references to National made by Fairchild (and shall not include any
such references to National without the written consent of National,
which
-24-
consent shall not be unreasonably withheld or delayed) in any
written materials that are intended to be filed with the Securities
and Exchange Commission in connection with obtaining financing
required to effect the transactions contemplated in connection with
the Purchase Agreement or intended to be distributed to prospective
purchasers pursuant to an offering made under Rule 144A promulgated
under the Securities Act of 1933 in connection with obtaining such
financing.
17.12 NO PARTNERSHIP OR AGENCY CREATED: Nothing contained herein or done
pursuant to this Agreement shall constitute the Parties as entering
upon a joint venture or partnership, or shall constitute either
Party the agent for the other Party for any purpose or in any sense
whatsoever.
17.13 BINDING EFFECT: This Agreement and the rights and obligations
hereunder shall be binding upon and inure to the benefit of the
Parties hereto and to their respective successors and assigns.
17.14 NOTICES: All notices, requests, demands and other communications
which are required or may be given under this Agreement shall be in
writing and shall be deemed to have been duly given when received if
personally delivered; when transmitted if transmitted by telecopy,
electronic or digital transmission method; the day after it is sent,
if sent for next day delivery to a domestic address by a recognized
overnight delivery service (e.g., Federal Express); and upon
receipt, if sent by certified or registered mail, return receipt
requested. In each case notice shall be sent to:
National: National Semiconductor Corporation
2900 Semiconductor Drive
P.O. Box 58090
M/S 16-135
Santa Clara, CA 95052-8090
Attn: General Counsel
FAX: (408) 733-0293
Fairchild: Fairchild Semiconductor Corporation
MS01-00 (General Counsel)
333 Western Avenue
-25-
South Portland, ME 04106
FAX: (207) 761-6020
or to such other place as such Party may designate as to itself by
written notice to the other Party.
IN WITNESS WHEREOF, the Parties have had this Agreement executed by their
respective duty authorized officers on the day and date first written above. The
persons signing warrant that they are duly authorized to sign for and on behalf
of the respective Parties.
NATIONAL SEMICONDUCTOR CORPORATION
By: /s/ John M. Clark III
--------------------------------
Title: Senior Vice President
FAIRCHILD SEMICONDUCTOR CORPORATION
By: /s/ Joseph R. Martin
--------------------------------
Title: Executive Vice President, CFO
-26-
EXHIBIT A
WKS ASSEMBLY/TEST EASY FLOW INSTRUCTION DOCUMENT
PAGE :1
DATE: 96-12-20
Lot No.:
NN4788F019
ORDER/LOT NO: NN4788-F-01-9 ORD TYPE B PRIORITY 7
NSID: 74VHC138MTCX SPEC: - S/O RV:
PROD LINE: 02FL08 PKG N-MTCO-016 PF: 8P
LOT PREFIX: CODE:
CUSTOMER:
PROCESS OPTION: SOIC * FULL RAIL * 2500
BUILD SHEET ID: 74VHC138MTC - 01 STARTS QTY: 5423
BS REV: A BS DRWG SIZE : EBS BS DIE-STEP REV: M STARTS DATE: 97310
SALES ORDER REF:
SHIP TO DEST - (LOC/DIV/DEP) --- -> IL023500 PLANT SCH ST. DATE:
NEXT AREA LOC: LOC: IL DEPT: 3500 MIC: BG
DEC:
----------- DIE PTV INFO ----------
MFG FLOW: 3 ETA DUE: WW31-0 PTV: 45376 PTV ITEM: 001
4 ETA WW31-0 DIV/DEPT: 02-3100 MCC: DC
5 ETB WW31-4 RACK NO: STD LOT QTY: 56452
6 CEA WW32-0 SI CONTROL NO.: 97JKEP01N003D001
COMMITED QTY: 5423
BIN READ (ME): QTY: 0
SOURCE LOC: EP PARENT LOT: SHPT #:
SPECIAL INSTRUCTIONS:
CUSTOMER DELIVERY DATE 97/32/2
BILL OF MATERIALS/DUTY & TRACEABILITY INFOR (FOR RELEASE ORDER)
PM NSPN: 74VHC138 -M1A3006T STEP M
SI CONTROL NO: 97JKEP01N003D001 DIE 1330.00X 1330.00/MC
SIZE/UM:
CUS CON NO: 97JKEP01N003D001 DIE RUN 15 ORIG: US
NO:
KK DESCRIPTION: FRAME, TSSOP, 16L, 2SQ, CU, MAT, ETCH, AP4AG4AG (OPT 06)
KK STK NO: 052655 FRM LOT#: _________________________________________________
_________________________________________________
MARKING INSTRUCTIONS:
2 DIGIT D/C: P69 4DIGIT D/C: P9652 DIE RUN CODE: AB
CARRIER #/L-BOX #: _________________________________________________
PDS SPCL INST:
PDS LONG DESC:
REF #: TS1310 $NP69AB
PKGCD:N-MTC0-016 V138
- ------------------------------------------------------------------------------------------------ ------------------------------
CARRIER# CARRIER# CARRIER# MOUNT SAW
- ------------------------------------------------------------------------------------------------ ------------------------------
DIE ATTACH LEAD BOND 3RD OPT CASSETTE
- ------------------------------------------------------------------------------------------------ ------------------------------
E/NO MAG STRIP MC E/NO MAG STRIP MC E/NO MAGA STRIP MCC FRM# FRM# FRM# FRM#
- ------------------------------------------------------------------------------------------------ ------------------------------
1 1 1
- ------------------------------------------------------------------------------------------------ ------------------------------
2 2 2
- ------------------------------------------------------------------------------------------------ ------------------------------
3 3 3
- ------------------------------------------------------------------------------------------------ ------------------------------
4 4 4
- ------------------------------------------------------------------------------------------------ ------------------------------
5 5 5
- ------------------------------------------------------------------------------------------------ ------------------------------
6 6 6
- ------------------------------------------------------------------------------------------------ ------------------------------
7 7 7
- ------------------------------------------------------------------------------------------------ ------------------------------
8 8 8
- ------------------------------------------------------------------------------------------------ ------------------------------
9 9 9 3/OPT
- ------------------------------------------------------------------------------------------------ ------------------------------
10 10 10 8 STRIPS
- ------------------------------------------------------------------------------------------------ ------------------------------
11 11 11 GROSS QTY
- ------------------------------------------------------------------------------------------------ ------------------------------
12 12 12 DA BLUE
- ------------------------------------------------------------------------------------------------ ------------------------------
13 13 13 S/O REJ
- ------------------------------------------------------------------------------------------------ ------------------------------
14 14 14 QTY OUT
- ------------------------------------------------------------------------------------------------ ------------------------------
15 15 15
- ------------------------------------------------------------------------------------------------ ------------------------------
16 16 16
- ------------------------------------------------------------------------------------------------ ------------------------------
17 17 17
- ------------------------------------------------------------------------------------------------ ------------------------------
18 18 18
- ------------------------------------------------------------------------------------------------ ------------------------------
19 19 19
- ------------------------------------------------------------------------------------------------ ------------------------------
20 20 20
- ------------------------------------------------------------------------------------------------ ------------------------------
21 21 21 POST PLATE
- ------------------------------------------------------------------------------------------------ ------------------------------
22 22 22 POS 1 2 3 4
- ------------------------------------------------------------------------------------------------ ------------------------------
23 23 23 RACK #
- ------------------------------------------------------------------------------------------------ ------------------------------
24 24 24 STRUP POS
- ------------------------------------------------------------------------------------------------ ------------------------------
25 25 25 COMBO POS
- ------------------------------------------------------------------------------------------------ ------------------------------
26 26 26 POS 5 6 7 8
- ------------------------------------------------------------------------------------------------ ------------------------------
27 27 27 RACK 8
- ------------------------------------------------------------------------------------------------ ------------------------------
28 28 28 STRIP POS
- ------------------------------------------------------------------------------------------------ ------------------------------
COMBO POS
------------------------------
- ------------------------------------------------------------------------------------------------ ------------------------------
LOT TRACEABILITY IDENTIFICATION FOI
- ------------------------------------------------------------------------------------------------ ------------------------------
OPERATION MAG # OF
- ------------------------------------------------------------------------------------------------
TRAY QTY REMARKS
- ------------------------------------------------------------------------------------------------ ------------------------------
F/S FULL
- ------------------------------------------------------------------------------------------------ ------------------------------
HALF
- ------------------------------------------------------------------------------------------------ ------------------------------
DEJUNK TOTAL
- ------------------------------------------------------------------------------------------------ ------------------------------
- ------------------------------------------------------------------------------------------------ ------------------------------
HONING
- ------------------------------------------------------------------------------------------------ ------------------------------
- ------------------------------------------------------------------------------------------------ ------------------------------
MARK
- ------------------------------------------------------------------------------------------------ ------------------------------
- ------------------------------------------------------------------------------------------------ ------------------------------
- ------------------------------------------------------------------------------------------------
MOLD MARK CURE
- ------------------------------------------------------------------------------------------------
OVEN # TEMP CURE TIME TIME IN WW IN E/NO-S TIME OUT WW OUT ACT T-OUT
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
TRIM AND FORM
- ------------------------------------------------------------------------------------------------
TMF TAM TNF TAM EPI
TROLLEY TROLLEY VAR
MKE # #
- ------------------------------------------------------------------------------------------------
NO. OF TRAY
- ------------------------------------------------------------------------------------------------
GROSS UNITS
- ------------------------------------------------------------------------------------------------
REJECTS
- ------------------------------------------------------------------------------------------------
VARIANCE
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
EOL EPI REJECTS
- ------------------------------------------------------------------------------------------------
INCOMP VOIDS MISP OTHERS DEJUNK HONING MARK VAR TOTAL
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
HON M/C COMBO STRIPS REMARKS
- ------------------------------------------------------------------------------------------------
F/S DEJUNK HONING MARK
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
ORDER/LOT NO: NN4788F019 NSPN: 74VHC138MTCX PAGE: 3
DATE: 96-12-2
PACK INSTRUCITONS TEMPLATE
PACK INSTRUCTIONS-> HTB = IMM
MTC16 MOLDED TSSOP, JEDEC, 4.4MM BODY WIDTH, 16 LD,
LVL ALT STOCK# DESCRIPTION PACK UNITS LABEL CAU MST BEO
IMM 017983 REEL, PLASTIC, EMPTY, A/S, 13" DIA 12MM 2500 F63TNR Y
TAPE
053044 TAPE, S/D, EMBOSSED, 12MM, TSSOP 1
4/16, ADV
025360 TAPE, COVER, S/D, 12MM CAVITY
051035 LABEL, NSC LOGO, ESD, SELF ADHESIVE,
65MM X 70MM
A 045189 LABEL, NSC LOGO, ESD, PULL STRENGTH,
2 1/8" X 2 1/2"
IN1 001826 BOX, TRF1-1, TUCKED TOP, 13 7/8" X 1 2500 F63TNR
13 3/8"x1 3/8", 150LB
COMMENTS:
REV DATE: 08/29/94 REV NBR: 00 PACKTID: M20746
ORDER/LOT 3 NN4788-F-01-9 74VHC138MTCX - 02FL08 NMTC0016 PAGE: 2
DATE: 96-12
OPN TYP OUT QTY E/NO/SHIFT WWD/S FLOW INSTRUCTIONS
- ----------- ------- ------------- ------------ ---------------- ------------- ------------------------------------------
EW/TECN INFORMATION: NIL
FLOW CODE: A09
3610 K _____ _____ _____ _____ DIE PREP MODULE
WAFER NO: _____# WAFERS:
3006 _____ _____ _____ _____ WAFER MOUNT
3002 _____ _____ _____ _____ SAW/WASH
M/C #:______M/C: DFD640 "A" MOT
9300 _____ _____ _____ _____ P/S B/O
4634 K _____ _____ _____ _____ DIE ATTACH MODULE/DIE ATTACH
AMI: 1 KNS CHUCK: 11 ESEC: 1
YLD LOSSES:____M/C #_____
FRAME STOCK #: 052655
4094 _____ _____ _____ _____ POLY CURE OVEN #:
TIME IN:__________ TIME OUT:_________
9400 _____ _____ _____ _____ PUSH/AUDIT TEST
4600 K _____ _____ _____ _____ LEAD BOND MODULE/LEAD BOND
WIRE SIZE: 1 MIL
YLD LOSSES: _____M/C #_____
USE BOND PARA CODE: C
4056 _____ _____ _____ _____ 3/OPT
9401 _____ _____ _____ _____ 3/OPT B-OFF
FLOW CODE: E07
5121 _____ _____ _____ _____ MOLD
M/C #:______
MAND COMPD: B-26 SUB-LOT #:_____
MOLD: GP
# STRIPS:_____ REMARKS:_____
5104 _____ _____ _____ _____ PACKAGE CURE
CURING TIME: 5 HRS
5217 _____ _____ _____ _____ DEJUNK
M/C#:_____
# STRIPS:______ REMARKS:_____
5601 K _____ _____ _____ _____ HONING
M/C#:_____ REMARKS:_____
5781 _____ _____ _____ _____ POST PLATE
TANK #:_____ # STRIPS:_____
5907 _____ _____ _____ _____ LMTNF
YIELD LOSSES:_____
# STRIPS:______ REMARKS:_____
5127 _____ _____ _____ _____ FOI
5602 K _____ _____ _____ _____ PACK MODULE/PACK
YIELD LOSSES:_____
EXHIBIT B
FAIRCHILD
ASSEMBLY SERVICES AGREEMENT
EXHIBIT B
====================================================================================================================================
FORECASTING FORMAT
- ------------------------------------------------------------------------------------------------------------------------------------
MINIMUM
STOCK NO STK TYP BF MFLO PROD GRP LEAD ASY LO CUST MISC STOCK PER 1 PER 2 PER 3 PER 4 PER 5 PER 6 PER 7 PER 8
- ------------------------------------------------------------------------------------------------------------------------------------
100441 B PY SS106 0202DL55 JCDIP008 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
010438 B PY LS108 0202DL55 JCDIP008 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
023549 B PY LS116 0202DL55 JCDIP016 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
023546 B PY SS116 0202DL55 JCDIP016 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
010743 B PY LS120 0202DL55 JCDIP020 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
010533 L PY SS108 0202DL55 JCDIP006 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
010533 L PY LS106 0202DL55 JCDIP006 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
020057 L PY LS116 0202DL55 JCDIP016 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
020057 L PY SS116 0202DL55 JCDIP016 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
004653 L PY LS120 0202DL55 JCDIP020 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
007670 F PY SS106 0202DL55 JCDIP006 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
007667 F PY LS106 0202DL55 JCDIP006 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
007964 F PY MS116 0202DL55 JCDIP016 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
023552 F PY SS116 0202DL55 JCDIP016 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
007978 F PY MS120 0202DL55 JCDIP020 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
065725 F F30 IDF 0202DL55 NMDIP006 EM 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
000626 F F30 IDF 0202DL55 NMDIP006 EM 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
065725 F F30 IDF 0202DL55 NMDIP006 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
000626 F F30 IDF 0202DL55 NMDIP006 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
010737 F F30 IDF 0202DL55 NMDIP014 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
024246 F F30 IDF 0202DL55 NMDIP014 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
021706 F F30 IDF 0202DL55 NMDIP014 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
001023 F F30 IDF 0202DL55 NMDIP014 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
009407 F F30 IDF 0202DL55 NMDIP020 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
023206 F F30 IDF 0202DL55 NMDIP020 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
022765 F F30 IDF 0202DL55 NMDIP020 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
003276 F F30 IDF 0202DL55 NMDIP022 EM 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
023996 F F30 IDF 0202DL55 NMDIP06E EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
007700 F F30 IDF 0202DL55 NMDIP06E EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
000475 F F30 IDF 0202DL55 NMDIP06E EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
009396 F F30 IDF 0202DL55 NMDIP06E EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
007768 F F30 IDF 0202DL55 NMDIP06E EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
065708 F PCC PCC20 0202DL55 NMPCC020 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
065771 F PCC PCC20 0202DL555 NMPCC020 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
065881 F PCC PCC20 0202DL55 NMPCC020 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
022655 F PCC PCC44 0202DL55 NMPCC044 SG 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
024625 F SO S006N 0202DL55 NMSON006 EM 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
051149 F SO S006N 0202DL55 NMSON006 EM 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
023077 F SO S006N 0202DL55 NMSON006 EM 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
024626 F SO S006N 0202DL55 NMSON006 EM 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
024631 F SO S014N 0202DL55 NMSON014 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
024629 F SO SO14N 0202DL55 NMSON014 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
023079 F SO SO14N 0202DL55 NMSON014 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
024646 F SO SO16N 0202DL55 NMSON016 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
053243 F SO SO16N 0202DL55 NMSON016 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
023078 F SO SO16N 0202DL55 NMSON016 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
065933 F SO SO16W 0202DL55 NMSOW016 EM 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
065917 F SO SO16W 0202DL55 NMSOW016 EM 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
014591 F SO SO20W 0202DL55 NMSOW020 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
051295 F SO SO20W 0202DL55 NMSOW020 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
024279 F SO SO20W 0202DL55 NMSOW020 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
049356 F SO SO20W 020DL55 NMSOW020 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
066001 F SO SO24W 0202DL55 NMSOW024 US 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
037192 F SO SO24W 0202DL55 NMSOW024 US 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
022539 F SO SO26W 0202DL55 NMSOW026 SA 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
022539 F TSO TSO48 0202DL55 NMTD0048 SA 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
022539 F TSO TS056 0202DL55 NMTD0056 SA 0 0 0 0 0 0 0 0
====================================================================================================================================
EXHIBIT B
====================================================================================================================================
022539 F SSO SS028 0202DL55 NSSOE026 MA 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
022539 F SSO SSO48 0202DL55 NSSOP048 EP 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
022539 F BGA BGA121 0202DL55 NUBD0121 SA 0 0 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
022539 F QFP PQFP44 0202DL55 NVEF0044 SH 0 0 0 0 0 0 0 0
====================================================================================================================================
EXHIBIT B
- --------------------------------------------------------------------------------
Total Cebu Installed Capacity
FY98
in M units RR/Wk
-----------------------------------------------------------
TO-92 14.0
SOT-23 42.0
SOT-223 2.0
SOT 6 1.0
SOT 8 1.0
Diode 100.0
TO-220 1.2
SO-8 2.0
SO-16 0.1
-----------------------------------------------------------
1/22/97
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Exhibit C
TOTAL PENANG FACILITY CAPACITY
--------------------------------------------------------------------------
workdays
----------------------------
DAILY 344.7 344.7
Run Rate FY98 FY99
-------- ---- ----
in K units
--------------------------------------------------------------------------
MDIP ASSEMBLY
flow 30 08 73 25163 25163
14/6E 395 136157 136157
20 219 75489 75489
24 6 2068 2068
28 20 6894 6894
TOTAL 713 245771 245771
simp flow
14 440 151668 151668
20 219 75489 75489
TOTAL 659 227157 227157
--------------------------------------------------------------------------
--------------------------------------------------------------------------
JEDEC SOIC
non sim flow 14/16 1162 400541 400541
20 614 211646 211646
24 0 0 0
TOTAL 1776 612187 612187
simp flow 14 1120 386064 386064
20 602 207509 207509
TOTAL 1722 593573 593573
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TSSOP
14/16/20/24 305 105134 105134
--------------------------------------------------------------------------
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SSOP
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EXHIBIT D
Section 6 12/20/96
Proposed Scheduling Table
ASSEMBLY & TEST
FORECAST TIMETABLE
Week
Day
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Period 12 Period 1 Period 2 Period 3
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1 2 3 4 5 1 2 3 4 1 2 3 4 1 2 3 4 5
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1
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2 ZA A ZA
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3
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4
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5 R Y R Y R Y R Y
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R=NSC 90 DAY ROLLLING (OR 8 PD) FORECAST TO FSC
Y=FSC PROVIDES CAPACITY REQUEST TO NSC
Z=NSC PLACES BLANKET 3 PD PURCHASE ORDER WITH NSC
A=NSC RELEASES DETAIL OF WAFER STARTS FOR THE FOLLOWING PERIOD
Foundry Agreement
Penang - Exhibit G
Q497 Q198 Q298 Q398 Q498 Q199 Q299 Q399 Q499 Q100 Q200 Q300 Q400
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Volume
MDIP08 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP14 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP6E [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP2S [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP20 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC14 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC16 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC20 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
TSSOP 20 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SSPO 48 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
- ------------------------------------------------------------------------------------------------------------------------------------
Total [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
- ------------------------------------------------------------------------------------------------------------------------------------
Assembly Price MDIP08 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
(per K) MDIP14 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP6E [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP2S [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP20 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC 14 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC 16 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC 20 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
TSSOP 14/16 (assy) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
TSSOP 20 (assy) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SSOP48 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
Test price MDIP08 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
(per k) MDIP14 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
(single insert) MDIP6E [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP2S [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP20 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC 14 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC 16 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC 20 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SSOP 48 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SSOP 40 (test) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
EIAJ (test) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
NMPCC (test) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
JDIP (test) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
TSSOP (test) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
Foundry Agreement
Penang - Exhibit G
Q497 Q198 Q298 Q398 Q498 Q199 Q299 Q399 Q499 Q100 Q200 Q300 Q400
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Total A+ T price MDIP08 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
(per k) MDIP14 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP6E [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP2S [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
MDIP20 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC 14 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC 16 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOIC 20 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
TSSOP 20 (assay) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SSOP48(assay) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
Foundry Agreement
Cebu - Exhibit G
Q397 Q497 Q198 Q298 Q398 Q498 Q199 Q299 Q399 Q499 Q100 Q200 Q300 Q400
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Volume TO 92 (assy+test) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
(M) SOT 23-3 (assy) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOT 23-5 (assy) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOT 223-4 (assy) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
Super SOT (assy+test) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
Outs TO 92 (93%) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
(M) SOT 23-3 (97%) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOT 23-5 (97%) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOT 223-4 (97%) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
Super SOT (93%) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
Price TO 92 (assy) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
(per K) TO 92 (test) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
TO 92 (assy+test) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOT 23-3 (assy) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOT 23-5 (assy) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
SOT 223-4 (assy) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
Super SOT (assy) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
Super SOT (test) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
Super SOT (assy+test) [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
Ave Unit Price [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]
Exhibit H
Principles of Manufacturing
o Forecasted volumes will be supplied covering all aspects of activity for 3
years.
o National will meet a Revenue commitment of [CONFIDENTIAL INFORMATION
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION]
over[CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION], effective the date of closing of the
purchase agreement.
o Price will be fixed for the first [CONFIDENTIAL INFORMATION OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] months.
Pricing will reflect National's full absorption of the fixed cost based on
its percent utilization of the South Portland, Maine 6" facility (i.e.,
this incorporates the agreed equivalency factors).
o Principles will be set to establish pricing for the second [CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION] months.
o Cost base for FM Class 1 will be Q4 Forecast FY97 with a fully capitalized
base.
o National will pay a mark up of [CONFIDENTIAL INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] in the first
[CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION] months.
Principles of Manufacturing
o For Class 1 the pricing after the initial [CONFIDENTIAL INFORMATION
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION]
months is targeted to decline [CONFIDENTIAL INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] % or better given
equal loadings in each subsequent interval. If the volume is greater price
reduction will be increased accordingly.
o Incremental volumes above the forecast volumes will be priced per table:
4" = [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION]
5" = [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION]
6" ABIC [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION]
CBTX [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION]
CBI [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION]
CS80 [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION]
o Available incremental capacity will be at [CONFIDENTIAL INFORMATION
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION]
the base.
Principles of Manufacturing
o Pricing activity beyond Fiscal Year 00
- In case the Parties are unable to agree on prices for the following
year, the prices used in the previous year will remain in effect,
and the Parties will be allowed to reduce the capacity commitment
each quarter by a quantity of [CONFIDENTIAL INFORMATION OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] %,
starting one quarter after the price agreements expires. A notice
shall be given [CONFIDENTIAL INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] prior to any
capacity reduction.
Principles of Manufacturing
o For the Class 100 and the Penang Assembly and Test Facilities the price
after the initial [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION] months commitment will be at
cost plus [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION] %. If the actual cost is better than
the agreed upon base a credit will be given to National in the subsequent
Fiscal Half equal to [CONFIDENTIAL INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] % of the savings.
If the cost is greater than the agreed upon base, the price will be
[CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION]
Exhibit K
[CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION]