EXHIBIT 4.16
Page 1 of 7
10th January 2003
SPECIFIC SERVICE AGREEMENT
BETWEEN
SONY ERICSSON MOBILE COMMUNICATIONS AB
(HEREINAFTER REFERRED TO AS "SONY ERICSSON")
AND
NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS Ltd.
(HEREINAFTER REFERRED TO AS THE "SUPPLIER")
REGARDING PROJECT "FILIP"
Page 2 of 7
10th January 2003
TABLE OF CONTENTS
1. TERMINOLOGY INTEGRATED PART........................................ 1
2. SCOPE OF THE SSA................................................... 2
3. FORECASTS AND ROADMAPS............................................. 2
4. COMMUNICATION AND CONTACT PERSONS.................................. 2
5. INDUSTRIALISATION SERVICES......................................... 2
6. INDUSTRIALISATION-TEST APPLICATIONS................................ 3
7. PROTOTYPES......................................................... 3
8. SPECIFICATION...................................................... 3
9. DOCUMENTATION...................................................... 3
10. PRICING AND TERMS OF PAYMENT..................................... 3
11. TERMS OF DELIVERY................................................ 4
12. PACKING AND LABELLING............................................ 4
13. QUALITY.......................................................... 4
14. PURCHASE OF COMPONENTS........................................... 4
15. TERM OF AGREEMENT AND TERMINATION................................ 5
ENCLOSURES:
Enclosure 2.3 Project Plan, NDU/P-02:1321
Enclosure 10.1 Prices and Price model
Enclosure 14.1 Purchase of components
Enclosure 14.2 Liability and Forecast model
Page 1 of 7
10th January 2003
SPECIFIC SERVICE AGREEMENT
made as of 10th January 2003, by and between
Sony Ericsson Mobile Communications AB, Org no 556615-6658, a limited liability
company duly incorporated and existing under the laws of Sweden, with its legal
address at Nya Vattentornet, S-221 88 Lund, Sweden, hereinafter referred to as
"Sony Ericsson",
and
NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS Ltd, with organisation number 129666, a
corporation duly incorporated and existing under the laws of Hong Kong and
having its registered office at 15th Floor, China Merchants Tower, Shun Tak
Centre, 168-200 Connaught Road Central, Hong Kong (hereinafter referred to as
the "Supplier").
(hereinafter referred to as the "Supplier").
WHEREAS:
1. Ericsson and Supplier have entered into the General Service and
Purchase Agreement, GSPA, dated 15th February 2001 among other
agreements, The GSPA has been duly assigned to Sony Ericsson Mobile
Communications AB during 2002.
2. The GSPA contains the general terms and conditions for the performance
of Product Supply to Sony Ericsson, from Supplier,
3. It is intended that the GSPA will be supplemented by one (1) or more
SSA's setting out the specific provisions relating to the performance
of Product Supply, and
4. The Supplier has explained that it is willing and fully able to perform
the Product Supply on behalf of Sony Ericsson for delivery of high
quality Products, under the terms and conditions set out in this SSA
and the GSPA.
NOW THEREFORE, in consideration of the mutual obligations herein contained, the
Parties agree as follows:
1. TERMINOLOGY, INTEGRATED PART
The GSPA shall be an integrated part of this SSA and, accordingly, all
terms and conditions in the GSPA shall also apply to this SSA.
Capitalised terms contained herein shall have the meanings assigned to
them below or as ascribed to them in the GSPA unless otherwise defined
in the context or document where it is used.
"AGREEMENT", means this Specific Service Agreement.
"GSPA", means the General Service and Purchase Agreement referred to in
the "Whereas"-section above entered into between the Parties.
"PRODUCT", means the Camera Filip, developed by C Technologies AB on
behalf of Sony Ericsson and as further specified in this Agreement.
Page 2 of 7
10th January 2003
"PA", means the Purchase Agreement separately signed covering the
Product. The PA will be the new name of the SPA mentioned in the GSPA.
"SSA", means this Specific Service Agreement.
2. SCOPE OF THE SSA
2.1 Under the terms and conditions set forth in the Agreement Documents
(i) Supplier shall - exclusively for Sony Ericsson - perform Product
Supply regarding the Product, and
(ii) Sony Ericsson shall be entitled to purchase the Products from
Supplier under the PA.
2.2 In the event of an inconsistency in the Agreement Document, the
inconsistency shall be resolved by giving documents precedence in the
following order:
(i) The Purchase Order, excluding Sony Ericsson's general purchasing
conditions if such have been enclosed with the Purchase Order,
(ii) The PA,
(iii) The GSPA.
(iv) This Agreement excluding the Enclosures,
(v) Enclosure 2.3 Project Plan
(vi) Enclosure 10.1 Prices and Price model
(vii) Enclosure 14.1 Purchase of components,
(viii) Enclosure 14.2 Liability and Forecast model
2.3 Included in the Product Supply shall be repair and maintenance services
as set out in Enclosure 2.3.
3. FORECASTS AND ROADMAPS
3.1 A forecast of RTL and production volumes may be included in Enclosure
2.3.These volume are only for production and capacity planning
purposes. Sony Ericsson is not committed to buy according to the
forecasted volumes. Sony Ericsson liability of the forecasted volumes
as per Article 14.
4. COMMUNICATION AND CONTACT PERSONS
4.1 In accordance with Subsection 5.5 of the GSPA the Parties hereby
appoint the contact persons set out in Enclosure 2.3 to receive and to
communicate information.
5. INDUSTRIALISATION SERVICES
5.1 Supplier shall, as part of the Product Supply and in accordance with
Subsection 6.1 of the GSPA, lead and be responsible for the
industrialisation of Product.
Page 3 of 7
10th January 2003
5.2 Supplier shall, as part of the Product Supply and in accordance with
Subsection 6.4 of the GSPA, provide information for the design work and
furthermore manufacture the test applications.
5.3 The requirements for traceability as provided in Subsection 6.7 in the
GSPA shall be as set out in Enclosure 2.3.
6. INDUSTRIALISATION-TEST APPLICATIONS.
6.1 Supplier shall develop and deliver Manufacturing Test Applications as
set out in Section 7 of the GSPA and as the case may be in Enclosure
2.3
7. PROTOTYPES
7.1 Supplier shall
(i) provide Sony Ericsson with Prototypes
(ii) review the Prototypes for manufacturability,
(iii) perform the testing of the Prototype, as defined in Enclosure
2.3 and
(iv) provide Sony Ericsson with written reports of the analysis of
the Prototypes.
8. SPECIFICATION
8.1 Supplier shall not deliver any Products unless they meet the
requirements set out in the Specification as set out in Enclosure 2.3
and amended from time to time in and as further described in Section 14
in the GSPA.
9. DOCUMENTATION
9.1 Project Documentation
The Supplier shall submit written reports to Sony Ericsson on the
activities and the progress of the Product Supply. Such reports shall
include the reports and plans specified in Enclosure 2.3.
9.2 Product Documentation
Supplier shall produce and deliver to Sony Ericsson Product
Documentation fulfilling the requirements set out in templates included
in Enclosure 2.3.
10. PRICING AND TERMS OF PAYMENT
10.1 The current price and the price model of the Product shall be as set
out in Enclosure 10.1.
All invoices sent by Supplier shall be in USD or Euro as agreed in the
PA
10.2 Price review
Page 4 of 7
10th January 2003
The price of the Products shall be reviewed and agreed quarterly before
the ending of every quarter in order for the prices to be firm for
deliveries during the following quarter.
The basis for the price review shall be:
(i) significant changes in volumes, and/or;
(ii) fluctuations in the exchange rate as defined below, and/or;
(iii) changes to the Specification, and/or;
(iv) increased production efficiency including but not limited to
"The learning curve advantage", and/or;
(v) changes in the price of the components.
(vi) delivery performance in the last quarter before against agreed
and acknowledge order, call of lead time
Changes in the Specification and/or changes of a specific component
price during a quarter, which causes a different price shall
immediately or with a reasonable delay - due to material in stock -
apply to all ordered Products. Such reasonable delays shall however
only relate to reasonable explainable normal stock levels or situations
with higher stock levels attributable to Sony Ericsson. At the
quarterly price review meetings Supplier will describe and specify the
changes made during the quarter. The different price shall be passed on
to Sony Ericsson at the aforementioned fixed exchange rate as defined
in GSPA.
11. TERMS OF DELIVERY
11.1 Delivery time
The Supplier shall perform the Product Supply, in accordance with the
time-schedule set out in Enclosure 2.3 Dates of delivery of volume
produced Products shall be as stated in the relevant P.O.
11.2 Delivery terms
Applicable terms of delivery shall be FCA Hong Kong International
Airport, INCOTERMS 2000, unless otherwise agreed in P.O.
12. PACKING AND LABELLING
12.1 The Products shall be packed and marked separately as set out in the
Specifications and the applicable Purchase Order. The Purchase Order
and product numbers shall be set out in the shipping documents.
13. QUALITY
13.1 All Product Supply shall be handled in accordance with the
standards/requirements set out in the Specification and in Enclosure
2.3
14. PURCHASE OF COMPONENTS
Page 5 of 7
10th January 2003
14.1 The Supplier shall purchase materials at contracted prices under
existing Sony Ericsson Agreements for supply of materials as set out in
Enclosure 14.1.
14.2 Sony Ericsson liability for components as related to volume forecast as
set out in Enclosure 14.2
14.3 The Supplier is responsible for the purchase and supply of all
components.
15. TERM OF AGREEMENT AND TERMINATION
15.1 This Agreement shall come into force upon its execution by duly
authorised representatives of both Parties and shall remain in effect
until three (3) months have passed following written notice of
termination by either Party, unless terminated on an earlier date as
set out in Section 29 "TERM OF AGREEMENT AND TERMINATION" in the GSPA.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed, in duplicate, each party taking one copy.
Date: 10th January 2003 Date: 10th January 2003
Place: Lund Place: Lund
NAM TAI ELECTRONIC & SONY ERICSSON MOBILE
ELECTRICAL PRODUCTS Ltd COMMUNICATIONS AB
/s/ Karene Wong /s/ KAZUAKI TAKANOSE
- -------------------------- ------------------------------
KARENE WONG KAZUAKI TAKANOSE
[SONY ERICSSON LOGO] 1 (7)
Internal Limited
PROJECT PLAN Filip
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P-02:1321
Approved Checked Date Rev Reference
NDU/PC Katarina Ekelund 2002-12-18 B File
PROJECT PLAN FILIP
CONFIDENTIAL
The content of this document is the property of Sony Ericsson Mobile
Communication AB and may not be communicated to any other party in any form
without the prior written consent of Sony Ericsson Mobile Communication AB.
Project Manager: NDU/ P Jeanette Bengtsson
Product Manager: NM Magnus Hultberg
Sony Ericsson Cost Center: 32001
Project Account Number: 10004069
TABLE OF CONTENTS
1 Revision history 2
2 Project Summary 2
3 Activities 2
4 Time Schedule 4
5 Prototypes 4
6 Type Approval 5
7 Volume Estimates 5
8 Project Responsibilities 6
9 Contractors 6
10 Project Control 6
11 Cross Project Links 6
12 Additional Agreements Document 7
[SONY ERICSSON LOGO] 2 (7)
Internal Limited
PROJECT PLAN Filip
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P-02:1321
Approved Checked Date Rev Reference
NDU/PC Katarina Ekelund 2002-12-18 B File
1 REVISION HISTORY
REV DATE
- --------------------------------------------------------------------------
B Jeanette Bengtsson 2002-12-18 Activities updated with ALP
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
2 PROJECT SUMMARY
Filip is a low cost Camera. TBD
3 ACTIVITIES
According to document Reporting and Meeting NDU/P - 02:1323 A
3.1 HARDWARE/OPTICS
Responsible developer C-Tech: PM TBD
3.2 MECHANICS/TOOLING
Responsible developer Namtai: PM TBD
3.3 SOFTWARE
Responsible developer C-Tech: PM TBD
3.4 ID
Responsible SEMC
3.5 PACKAGING AND ACCESSORIES
Responsible SEMC
3.6 SYSTEM VERIFICATION
- Functional C-Tech
Responsible C-Tech: PM TBD
- Environmental Namati
Responsible Namtai: PM TBD
- Image Quality C-Tech
[SONY ERICSSON LOGO] 3 (7)
Internal Limited
PROJECT PLAN Filip
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P-02:1321
Approved Checked Date Rev Reference
NDU/PC Katarina Ekelund 2002-12-18 B File
Responsible C-Tech: PM TBD
3.7 SYSTEM VALIDATION
- FSV Responsible C-Tech: PM TBD
- GFT SEMC
- CRT SEMC
3.8 SOURCING
- Sourcing Namati
Responsible Namtai: PM TBD
- Pricing and negotiation Namtai
Responsible Namtai: PM TBD
- Volume Support Namtai
Responsible Namtai: PM TBD
- Logistics Namtai
Responsible Namtai: PM TBD
3.9 TECHNICAL APPROVAL
- HW/Optics and SW C-Tech
Responsible C-Tech: PM TBD
- Mechanics Namtai
Responsible Namtai: PM TBD
3.10 INDUSTRALISATION
- Test Strategy Namtai
Responsible Namtai: PM TBD
- Test SW Dev. C-Tech
Responsible C-Tech: PM TBD
- Prod. Tech. Namtai
Responsible Namtai: PM TBD
[SONY ERICSSON LOGO] 4 (7)
Internal Limited
PROJECT PLAN Filip
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P-02:1321
Approved Checked Date Rev Reference
NDU/PC Katarina Ekelund 2002-12-18 B File
- PSA Namtai
Responsible Namtai: PM TBD
- SPVR Namtai
Responsible Namtai: PM TBD
3.11 SUPPORT SERVICES
- TBD
3.12 ALP
- Total Implementation
Responsible C-Tech
2. TIME SCHEDULE
More detailed time schedule is found in the Time Plan (Microsoft
Project Gantt Chart) Document No.: TBD
ACTIVITY PLANNED ESTIMATED ACTUAL
Milestone 2 W TBD W W
Tollgate 2 W TBD W W
PA W TBD W W
Milestone 3 W TBD W W
Tollgate 3 W TBD W W
Milestone 4 W TBD W W
Tollgate 4 W TBD W W
LL W TBD W W
RTL W 30 W W
Milestone 5 W TBD W W
Tollgate 5 W TBD W W
Milestone 6 W TBD W W
Tollgate 6 W TBD W W
3. PROTOTYPES
PROTOTYPES PLANNED ESTIMATED ACTUAL UNITS
EP1 W TBD W W (25?) pcs
FP1 W TBD W W 300? pcs
[SONY ERICSSON LOGO] 5 (7)
Internal Limited
PROJECT PLAN Filip
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P-02:1321
Approved Checked Date Rev Reference
NDU/PC Katarina Ekelund 2002-12-18 B File
FP2 W TBD W W 750? pcs
FP3/RTL W TBD 300? pcs
4. TYPE APPROVAL
- - RADIO
APPROVAL PLANNED ESTIMATED ACTUAL
W TBD W W
- - EMC
APPROVAL PLANNED ESTIMATED ACTUAL
W TBD W W
- - SAFETY
APPROVAL PLANNED ESTIMATED ACTUAL
W TBD W W
5. VOLUME ESTIMATES
PLANNED ESTIMATED ACTUAL UNITS
Pre-Series * W TBD W W kpcs
Series Start ** W TBD W W
RTL volume W TBD W W kpcs
Capacity per month Min 100? kpcs
Amortization volume TBD kpcs
Total volume 1000? kpcs
Estimated lifetime TBD month
* "Limited Production"
** "Volume Production"
Above listed volume is only for planning purposes and do not constitute a
commitment for SEMC to purchase
[SONY ERICSSON LOGO] 6 (7)
Internal Limited
PROJECT PLAN Filip
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P-02:1321
Approved Checked Date Rev Reference
NDU/PC Katarina Ekelund 2002-12-18 B File
6. PROJECT RESPONSIBILITIES
Sony Ericsson Mobile Communications AB
+46 46 19 40 00
According to Reporting and Meeting NDU/P 02:1323
7. CONTRACTORS
- - DESIGN (Development)
According to Reporting and Meeting NDU/ P 02:1323
Agreement no. CTECH: FILIP: TBD
9.2 PRODUCTION (Manufacturing)
According to Reporting and Meeting NDU/ P 02:1323
Agreement no. NAMTAI: FILIP: TBD
10 PROJECT CONTROL
Main TTM Work Model NDU/ P-02:1324
TTM Work Model External (Abstract out of Main TTM Work Model)
NDU/P-02:1325
The TTM work Model will be updated after TG1 and TG2.
This means that "TBD" will be updated and additional documents will be
required.
Depending on achieved results, adjustments will be done on existing
requirements.
The Project Plan and therein listed documents will be subject to
further updates and amendments.
11 CROSS PROJECT LINKS
[SONY ERICSSON LOGO] 7 (7)
Internal Limited
PROJECT PLAN Filip
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P-02:1321
Approved Checked Date Rev Reference
NDU/PC Katarina Ekelund 2002-12-18 B File
12 ADDITIONAL AGREEMENTS DOCUMENT
< Specifications > NDD-02:1223 PA2
< Main TTM Work Model > NDU/ P-02: 1321
< TTM Work Model External > NDU/ P-02: 1322
< Reporting and Meeting > NDU/ P 02: 1323
< Document structure spec. > 109 42-TBD
< Verification plans > TBD
< Industrial design > TBD
< Repair processes > TBD
< Validation plans > TBD
< Pre-study report > TBD
< Pre-study spec. > TBD
< Capacity build plans > TBD
< TBD >
[SONY ERICSSON LOGO] 1 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P-02:1325
Approved Checked Date Rev Reference
NDU/PC Katarina Ekelund 2002-12-03 PB File
TTM WORK MODEL EXTERNAL
BOX NO ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED DATE
EXECUTION PHASE TG 0 - TG 1
1.6 Technical Concepts - Pre-Study - Suppliers
Finalized - Pre-Study Report
Emma 2 compatible SW
1.8 Industrial Design - Industrial Design - SEMC
- Product Models
(CAD files)
- ID Report
Mechanical support is needed - Suppliers
from the supplier
1.10 IPR Analysis - IPR Disclosures - Suppliers
Tracked
1.14 Pre-Risk Analysis - Pre-Risk Analysis - Suppliers
Generated
1.15 Lessons Learned - Lessons Learned - Suppliers
Generated
2.9 Prototype - Prototype - Suppliers
[SONY ERICSSON LOGO] 2 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P-02:1325
Approved Checked Date Rev Reference
NDU/PC Katarina Ekelund 2002-12-03 PB File
EP 0
Working samples
TOLLGATE 1 - Decision to start a SEMC
Feasibility-Study
[SONY ERICSSON LOGO] 3 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P-02:1325
Approved Checked Date Rev Reference
NDU/PC Katarina Ekelund 2002-12-03 PB File
BOX NO ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED DATE
EXECUTION PHASE TG 1 - TG 2
2.2 Long Lead Time Parts - Key Elements Report - Suppliers
and Processes Supplier responsible to contact SEMC
Identified If they need support
2.15 Objects and Sub- - Project Plan, Verification - Suppliers
Projects Plans, Budget Plan, Budget, Time
and Time Schedule Schedule, Sub-Project
Plan, Prototype plan, Travel Plan,
Organisation and responsible within
C-Tech and Namtai
2.17 Risk Analysis - Risk Analysis - Suppliers
2.18 Capacity Build Plan - Capacity Build Plan - Suppliers
Developed The production capacity must
include a spare-part of 1% -> 2%
2.23 IPR Tracked - IPR Disclosures - Suppliers
Tracked
2.25 Lessons Learned - Updated Lessons - Suppliers
Updated Learned
2.26 Functional - Functional Requirement - Suppliers
Requirement Specification on Phone
[SONY ERICSSON LOGO] 4 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P-02:1325
Approved Checked Date Rev Reference
NDU/PC Katarina Ekelund 2002-12-03 PB File
Specification Rev. A, This need to be a SEMC
report, FRS
3.5 Technical Design - Periodical Reports -Suppliers
- Report at Deviation
- Design Report (BOM)
TOLLGATE 2 - Decision to start the SEMC
Execution Phase
[SONY ERICSSON LOGO] 5 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1325
Approved Checked Date Rev Reference
NDU/ PC Katarina Ekelund 2002-12-03 PB File
BOX ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED
NO DATE
EXECUTION PHASE TG 2 -TG 3
- --------------------------------------------------------------------------------------------------------
3.6 Supply Analysis on - Material Supply -Suppliers
Present Component Report
Material flow, risks if the volume
Specification increases
3.9 Customer Package - Product Package -SEMC
Design
- Customer Package -Suppliers
Concept (type of material could be
decided) there need to be a final -SEMC
model to finalize this item)
3.10 Producibility Review - Producibility Review -Suppliers
Conducted Report
3.12 Product Design - Preliminary Product -Suppliers
Documents Design Documents
(WHAT DATE?)
- Preliminary Product -SEMC
Design Documents in
PRIM and GASK
3.14 User Documentation - User Documentation -SEMC
Concept Generated Directed
- User Document -Suppliers
Concept
- Preliminary User -Suppliers
Document
Technical Design - Design Report -Suppliers
[SONY ERICSSON LOGO] 6 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1325
Approved Checked Date Rev Reference
NDU/ PC Katarina Ekelund 2002-12-03 PB File
3.16 (Bill of Material) (BOM Updated)
3.17 Production Process - Production Process -Suppliers
Specification Updated Specification Updated
- SPVR plan
3.18 Tools Designed - Recommendation to -Suppliers
Start Tool Design
- Design Tools -Suppliers
3.20 Customs Analysis - Customs Analysis -Suppliers
Report Updated
TEMPLATE FROM SEMC
- Report Evaluated -SEMC
3.23 Engineering Prototypes - Engineering Prototypes -Suppliers
Built EP 1; EP 2
- Engineering Prototypes
Built Report T
ONE REPORT FOR EACH EP AND FP
PRODUCTION. TEMPLATE FROM SEMC
3.24 Engineering Verification - Engineering Verification -Suppliers
Performed Report
TEMPLATE FROM SEMC
- Decision on Acceptance -Suppliers
3.25 Capacity Build Plan - Updated Capacity Build -Suppliers
Updated Plan PLUS SPARE PARTS CAPACITY
- Updated Capacity Build -SEMC
Plan
[SONY ERICSSON LOGO] 7 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1325
Approved Checked Date Rev Reference
NDU/ PC Katarina Ekelund 2002-12-03 PB File
3.28 IPR Tracked - IPR Disclosures -Suppliers
Tracked
3.30 Material Drive - Approval to Drive -SEMC
Material for Volume
Production
- Material Driving -Suppliers
3.32 Product Safety Review - Product Safety Review -Suppliers
Conducted Report
Template from SEMC
3.35 Component Risk - Supply Analysis -Suppliers
Analysis Performed Report
(IS THERE ANY CHANGE IN THE BOM)
- Supply Analysis -SEMC
Report Evaluated
3.36 Production Concept - Production Concept -Suppliers
Verification Verification
Everything completed according to
RTL
- Hard Tools Completed -Suppliers
- Process/test equipment
etc
- Production Concept Evaluated -SEMC
3.38 Customs Analysis - Customs Analysis -Suppliers
Report Updated
SEE 3.20
Customs analysis Evaluated -SEMC
[SONY ERICSSON LOGO] 8 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1325
Approved Checked Date Rev Reference
NDU/ PC Katarina Ekelund 2002-12-03 PB File
3.39 User Document - User Document Design -Suppliers
Completed Completed
3.40 Customer Package - Customer Package -Suppliers
Design Completed Design Completed
CAD FILES READY, MASTERPACK, BULK
PACK AND ADJUSTMENT FOR PALLET
3.43 Factory Prototypes - Factory Prototypes FP 1 -Suppliers
- FP Build Report
Built - SAME AS 3.23
3.44 Engineering - Engineering Verification -Suppliers
Verification II Performed Report
- SAME AS 3.24
- Decision on Acceptance
- Changes ? -Suppliers
3.45 User Document - Verification -SEMC
Verified - "LEAFLET"
Samples to SEMC for approval? Suppliers
3.46 Customer Package - Verification -SEMC
Verified
Samples to SEMC for the approval? -Suppliers
3.47 Product Design - Product Design -Suppliers
Documents Updated Documents Updated
[SONY ERICSSON LOGO] 9 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1325
Approved Checked Date Rev Reference
NDU/ PC Katarina Ekelund 2002-12-03 PB File
When will the document be ready?
- Product Design -SEMC
Documents in PRIM
and GASK Updated
3.49 Risk Analysis - Risk Analysis -Suppliers
Updated Updated I
3.50 Functional - Functional Requirement -Suppliers
Requirement Specification on Phone
Specification Finalized FRS
3.55 TOLLGATE 3 - Decision to Continue -SEMC
Execution
- Decision to
Recommended Public
Announcement
BOX ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED
NO DATE
EXECUTION PHASE TG 3-TG 4
[SONY ERICSSON LOGO] 10 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1325
Approved Checked Date Rev Reference
NDU/ PC Katarina Ekelund 2002-12-03 PB File
4.1 Pre-Production Starts - Factory Prototypes -Suppliers
FP 2; FP 3
SAME AS 3.43
4.3 Customer Package - Customer Package -Suppliers
Design Completed
Design Completed
- Approved Package -SEMC
Design
- Changes?
- LATEST DATE EVERYTHING
MUST BE READY -Suppliers
4.4 Interoperability Test - System Verification TEMPLATE -Suppliers
Performed - System Verification
FSV Report
- Decision on Acceptance -Suppliers
- Changes?
- Internal Type Approval (WHEN
IS EVERYTHING READY SO THAT
4.5 Internal Type Approval THE TEST CAN BE DONE?) -Suppliers
Conducted - Internal Type Approval
Report -SEMC
- Decision on Acceptance -SEMC
- Changes? -Suppliers
- External Type Approval (WHEN
IS EVERYTHING READY TO BE
4.6 External Type TESTED?) -Suppliers
Approval Conducted - External Type Approval -SEMC
[SONY ERICSSON LOGO] 11 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1325
Approved Checked Date Rev Reference
NDU/ PC Katarina Ekelund 2002-12-03 PB File
4.9 User Documentation - User Documentation -Suppliers
Completed
- Decision on Acceptance -SEMC
- Changes? -Suppliers
- Latest date everything
- must be ready
4.10 Product Validation - Customer Services Validation -SEMC
(DATE WHEN THE TEST CAN BE
PERFORMED) APPROVED
Conducted Product Validation
- Changes? -Suppliers
Date when the test
can be performed
4.14 Production - Production Documents -Suppliers
Documentation Finalized
Finalized (DATE WHEN IT SHOULD BE FINALIZED)
- Documents in GASK -SEMC
and PRIM. (Code PRA)
4.16 DRS Compliance - DRS Compliancy -Suppliers
Protocol
- Technical Approval -Suppliers
4.20 Serial Process - Pre-series Build Report -Suppliers
Verification Run
(SPVR) - SPVR Report -Suppliers
- SPVR Approval SEMC
- Changes? -Suppliers
[SONY ERICSSON LOGO] 12 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1325
Approved Checked Date Rev Reference
NDU/ PC Katarina Ekelund 2002-12-03 PB File
4.22 Technical Summary - Technical Summary -Suppliers
Review Conducted Review Report
4.25 Risk Analysis - Risk Analysis -Suppliers
Updated Updated
4.27 IPR Tracked - IPR Disclosures -Suppliers
Tracked
4.31 TOLLGATE 4 - Decision to start -SEMC
production and limited
launch according to
approved plans.
BOX ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED
NO DATE
[SONY ERICSSON LOGO] 13 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1325
Approved Checked Date Rev Reference
NDU/ PC Katarina Ekelund 2002-12-03 PB File
EXECUTION PHASE TG 4 - TG 5
5.9 Remaining Supply - Eliminate remaining -Suppliers
Issues Eliminated supply issues
5.10 Volume Production - Series Production Units -Suppliers
Started and Packaging
according to production
plan (RTL criteria)
5.11 Transfer Project - Decision to Transfer -SEMC
Responsibility to Project Responsibility
Product Maintenance to Product Maintenance
Project responsibility
and organization in the -Suppliers
Maintenance phase
5.13 Lessons Learned - Updated Lessons -Suppliers
Updated Learned
5.16 TOLLGATE 5 - Decision to Launch the -SEMC
Product According to
RTL Definition
- To Continue the
Execution According to
Original or Revised Plan
BOX ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED
NO DATE
CONCLUSION PHASE TG 5-TG 6
[SONY ERICSSON LOGO] 14 (14)
Internal Limited
TTM Work Model External
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1325
Approved Checked Date Rev Reference
NDU/ PC Katarina Ekelund 2002-12-03 PB File
6.1 Volume Production - Volume Production -Suppliers
Running According to
Original or Revised Plan
MONTHLY REPORT
6.10 TOLLGATE 6 - Decision to Close -SEMC
Project and Hand over to
Maintenance
Organization
[SONY ERICSSON LOGO] 1 (5)
Internal Limited
Reporting and Meetings
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1323
Approved Checked Date Rev Reference
NDU/ PC Gunilla Wejfeldt 2002-11-19 A File
REPORTING AND MEETINGS
CONTENTS
1.1 Project organization....... 0
1.2 Reporting structure........ 2
1.3 Phone list Sony Ericsson... 3
1.4 Phone list Namtai.......... 4
1.5 Phone list C-Tech.......... 5
1.1 PROJECT ORGANIZATION.
[PROJECT ORGANIZATION CHART]
[SONY ERICSSON LOGO] 2 (5)
Internal Limited
Reporting and Meetings
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1323
Approved Checked Date Rev Reference
NDU/ PC Gunilla Wejfeldt 2002-11-19 A File
1.2 REPORTING STRUCTURE.
Peter Johansson is responsible for the coordination of the project management of
C-Tech and Namtai.
Namtai Project Manager (PM) and C-Tech PM reports weekly through Peter Johansson
to Main Project Management.
Peter Johansson attends weekly meetings at SEMC.
Weekly report according to NDU/ P 02:1666.
Mail concerning the project shall be copied to Main Project Management.
Urgent matters shall upon receipt be reported to Main Project Management.
All issues and contacts between SEMC and supplier go through Main Project
Managers if nothing else is agreed.
TTM-model according to NDU/ P 02:1325.
[SONY ERICSSON LOGO] 3 (5)
Internal Limited
Reporting and Meetings
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1323
Approved Checked Date Rev Reference
NDU/ PC Gunilla Wejfeldt 2002-11-19 A File
1.3 PHONE LIST SONY ERICSSON
Name Company/ Title Number
- ---------------------------------------------------------------------
Ola Lonhage SEMC/ Main Project +46 46 231645
Manager Draken
Jeanette Bengtsson SEMC/ Main Project +46 46 193656
Manager FILIP
Maths Gylling SEMC/ Buyer (Paternity +46 46 232879
leave)
Niclas Jenvert SEMC/ Buyer +46 46 194673
Carina Rietz SEMC/ Product Manager +46 46 193738
(Maternity leave)
Magnus Hultberg SEMC/ Product Manager +46 46 193655
Jessica Reinholds SEMC/ PMQA +46 46 231201
Mats Dahlander SEMC/ Design & Test, FILIP +46 46 232528
Bengt Marntell SEMC/ Design & Test, +46 46 231856
DRAKEN
Joshua SEMC/ Designer FILIP
Jeanna Kimbre SEMC/ Designer DRAKEN +46 46 231662
Johan Larsson SEMC/ Documentation +46 46 193997
specialist
Mika Lilja SEMC/ Customer support +46 46 194011
Andreas Paulsson SEMC/ Product validation +46 46 194395
Hakan Sjoberg SEMC/ Type approval +46 46 193559
Christian SEMC/ Packaging Specialist +46 46 194586
Hakansson
Benjamin Wong SEMC/ PMQA, HK Office +852 2590 2399
[SONY ERICSSON LOGO] 4 (5)
Internal Limited
Reporting and Meetings
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1323
Approved Checked Date Rev Reference
NDU/ PC Gunilla Wejfeldt 2002-11-19 A File
1.4 PHONE LIST NAMTAI
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[SONY ERICSSON LOGO] 5 (5)
Internal Limited
Reporting and Meetings
Prepared (also subject responsible if other) No.
NDU/ P Jeanette Bengtsson NDU/ P - 02:1323
Approved Checked Date Rev Reference
NDU/ PC Gunilla Wejfeldt 2002-11-19 A File
1.5 PHONE LIST C-TECH
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Enclosure 10.1
Prices and Price model.
PRICE MODEL.
See enclosed Excel sheet, (Enclosure 10.1 A) to be applied as price
model.
PRICE.
The following price of the Product is agreed.
All prices in USD.
See Enclosure 10.1 B
Prices shall be updated during the development work. Present sheet
based upon CIF sensor and thereto related memory configuration, Changes
in specification may change prices.
Prototypes to be charged at agreed product price plus 5.00 USD each
The price of the Product is based upon an electronic BOM with CIF
Sensor cost of 6.99 USD. The variety of options listed in enclosure
10.1.B is defined in Namtai quote dated 2002-10-12 ed. B.
The corresponding price for the Product but with Argus Lite COB is 9.2
USD, based upon an electronic BOM of 5.4 USD excluding assembly of
Argus of 0.4 USD.
NRE cost: 19200 USD, travel expenses.
Tooling cost: 95.000 USD for a production capacity of 200k units per
month Test equipment: 136.500 USD. The August and August CI test
equipment shall be reused to greatest possible extend.
Tooling and test equipment cost shall be amortized over a fixed amount
of units, to be defined and added onto the product price.
Enclosure 10.1 A
Price model
1 MATERIAL COST
Bill of material
------------
Material scrap 1%
------------
Material burden 1.5%
------------
TOTAL MATERIAL COST
============
2 LABOUR COST
PROCESS RATE (USD) LABOUR TIME
------------
SMT 0.003/chip
------------
Final assy. 4.24/hour
------------
Testing 4.24/hour
------------
Packaging 4.24/hour
------------
TOTAL LABOUR COST
============
3 FREIGHT COST
According to enclosure
============
4 FINANCIAL COST
1.5% of bill of material for 60 days credit
============
0.75% of bill of material for 30 days
sea shipment. IF APPLICABLE
============
0.375% of bill of material for 15 days
sea shipment. IF APPLICABLE
============
5 PROFIT
4.3% of bill of material
============
TOTAL UNIT PRICE
============
TOOLING COST (FOR INFORMATION ONLY)
============
Enclosure 10.1 B Price
SONY ERICSSON MOBILE COMMUNICATIONS AB
CONFIDENTIAL
DATE: 23-SEP-02
MODEL : FILLP (WITH C-TECH SOLUTION)
QTY : 1000K
CONFIG. (MECH /
PACKING) Core/
Core 1/Core 2/Core 3/Core Core/A 1/A 2/A 3/A Core/B
NO OF PLASTIC PIECES PARTS 2 4 2 4 2 4 2 4 2
SPRAY No No Yes Yes No No Yes Yes No
PACKING Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Blister
MANUAL/CASE/NECKLOOP No No No No Yes Yes Yes Yes Yes
-----------------------------------------------------------------------
1 MATERIAL COST
Bill of material 8.62 8.73 9.01 9.40 9.39 9.50 9.78 10.17 9.57
------ ------ ------ ------ ------ ----- ----- ----- -------
Material scrap 1% 0.09 0.09 0.09 0.09 0.09 0.09 0.10 0.10 0.10
------ ------ ------ ------ ------ ----- ----- ----- -------
Material burden 1-5% 0.13 0.13 0.14 0.14 0.14 0.14 0.15 0.15 0.14
------ ------ ------ ------ ------ ----- ----- ----- -------
TOTAL MATERIAL COST 8.84 8.94 9.23 9.64 9.63 9.73 10.02 10.43 9.8O
------ ------ ------ ------ ------ ----- ----- ----- -------
2 LABOUR COST
PROCESS RATE (USD) LABOUR TIME
SMT 0.003/chip 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35
------ ------ ------ ------ ------ ----- ----- ----- -------
Final assy 4.24/hour 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35
------ ------ ------ ------ ------ ----- ----- ----- -------
Testing 4.24/hour 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19
------ ------ ------ ------ ------ ----- ----- ----- -------
Packaging 4.24/hour 0.11 0.11 0.11 0.11 0.12 0.12 0.12 0.12 0.14
------ ------ ------ ------ ------ ----- ----- ----- -------
TOTAL LABOUR COST 1.00 1.00 1.00 1.00 1.01 1.01 1.01 1.01 1.02
------ ------ ------ ------ ------ ----- ----- ----- -------
3 FREIGHT + INSURANCE COST
FCA Hong Kong (ship to SEM logistic agent in
HK 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07
------ ------ ------ ------ ------ ----- ----- ----- -------
4 FINANCIAL COST
0.75% of bill of material for 30 days credit 0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.07
------ ------ ------ ------ ------ ----- ----- ----- -------
5 PROFIT
4.8% of bill of material 0.41 0.42 0.43 0.45 0.45 0.46 0.47 0.49 0.46
------ ------ ------ ------ ------ ----- ----- ----- -------
6 UNIT PRICE FCA HK USD 10.39 10.50 10.80 11.23 11.23 11.34 11.64 12.07 11.43
------ ------ ------ ------ ------ ----- ----- ----- -------
CONFIG. (MECH /
PACKING)
1/B 2/B 3/B Core/C 1/C 2IC 3IC
NO OF PLASTIC PIECES PARTS 4 2 4 2 4 2 4
SPRAY No Yes Yes No No Yes Yes
PACKING Blister Blister Blister Gift Box Gift Box Gift Box Gift Box
MANUAL/CASE/NECKLOO Yes Yes Yes Yes Yes Yes Yes
-------------------------------------------------------------------
1 MATERIAL COST
Bill of material 9.67 9.95 10.35 9.61 9.71 9.99 10.39
------- ------- ------- -------- -------- -------- --------
Material scrap 1% 0.10 0.10 0.10 0.10 0.10 0.10 0.10
------- ------- ------- -------- -------- -------- --------
Material burden 1-5% 0.15 0.15 0.16 0.14 0.15 0.15 0.16
------- ------- ------- -------- -------- -------- --------
TOTAL MATERIAL COST 9.91 10.20 10.60 9.85 9.95 10.24 10.64
------- ------- ------- -------- -------- -------- --------
2 LABOUR COST
PROCESS RATE (USD) LABOUR TIME
SMT 0.003/chip 0.35 0.35 0.35 0.35 0.35 0.35 0.35
------- ------- ------- -------- -------- -------- --------
Final assy 4.24/hour 0.35 0.35 0.35 0.35 0.35 0.35 0.35
------- ------- ------- -------- -------- -------- --------
Testing 4.24/hour 0.19 0.19 0.19 0.19 0.19 0.19 0.19
------- ------- ------- -------- -------- -------- --------
Packaging 4.24/hour 0.14 0.14 0.14 O.14 0.14 0.14 0.14
------- ------- ------- -------- -------- -------- --------
TOTAL LABOUR COST 1.02 1.02 1.02 1.02 1.02 1.02 1.02
------- ------- ------- -------- -------- -------- --------
3 FREIGHT + INSURANCE COST
FCA Hong Kong (ship to SEM logistic agent in
HK 0.07 0.07 0.07 0.07 0.07 0.07 0.07
------- ------- ------- -------- -------- -------- --------
4 FINANCIAL COST
0.75% of bill of material for 30 days credit 0.07 0.07 0.08 0.07 0.07 0.07 0.08
------- ------- ------- -------- -------- -------- --------
5 PROFIT
4.8% of bill of material 0.46 0.48 0.50 0.46 0.47 O.48 0.50
------- ------- ------- -------- -------- -------- --------
6 UNIT PRICE FCA HK USD 11.54 11.84 12.27 11.47 11.58 11.89 12.31
------- ------- ------- -------- -------- -------- --------
Enclosure 14.1
Purchase of components.
COMPONENTS BOUGHT UNDER SONY ERICSSON AGREEMENTS.
Supplier may call off volumes of below listed components from applicable Sony
Ericsson agreements. Any such components shall only be used for manufacturing of
the Product. Supplier may issue a forecast of the estimated volume to the
selected component supplier to secure delivery.
Supplier is solely responsible for the supply chain
1. Icon,
2. System connector,
Sony Ericsson will advise about agreements with component supplier and valid
prices during the project.
Enclosure 14.2,
Liability and Forecast model
The components covered by this Enclosure shall solely be used for the
manufacturing of the Product. See enclosed Excel sheet for liability
model. Volume figures, component lead-time and price to be updated
every month
The model will be applicable for any forecast issued by Sony Ericsson
as agreed between the parties. Sony Ericsson will issue a revised
forecast the last business day in each month.
During the ramp up period, (normally three months following the RTL
date) Supplier shall review the proposed volume to confirm if the
necessary capacity is available. This volume proposal to be
communicated in due time before formal fore cast is issued at the end
of each month.
If a revised forecast or the actual call off volume will be lower for a
certain month than the previously agreed, which will result in excess
components and such components is not possible to reschedule the
following applies;
- - Supplier undertakes to keep such material in stock free of charge for
the first three months after the concerned month. From month four to
nine after such event Sony Ericsson will cover the interest cost of the
listed components based upon an reasonable interest rate and reasonable
warehousing cost for the components listed herein. After this nine
months period Supplier may claim that this liability undertaking by
Sony Ericsson shall be executed.
- - In an event of excess material Namtai undertakes to make their best
effort to cancel any outstanding purchase order of components and to
resell or reuse any excess component prior to making any claim to Sony
Ericsson
- - Sony Ericsson will assume liability for scrap of the above components
provided cause of scrap is solely at Sony Ericsson and prior written
approval to scrap. Sony Ericsson maximum liability is limited to direct
material and the maximum liability figure is defined by the liability
model using the applicable forecast volume, component lead-time and
prices.
- - Sony Ericsson shall have the option to have the components assembled
into finished Products at agreed price instead of scrapping the
components.
If no notice is given to Sony Ericsson within one week after the
receipt of revised forecast or actual monthly call off volume it is
deemed that the revised forecast is accepted (i.e. No claim is to be
made later nor any objection that the increased volume is not possible
to meet)
Any delay in delivery of the Products, caused by Supplier will in full
release Sony Ericsson from its liability under this amendment.
Any undertaking of Sony Ericsson and Supplier as defined herein shall
be limited in time to 30th June 2005.
Enclosure 14.2A
Liability and Forecast model
CALCULATION OF FORECAST LIABILITY
PRODUCT INFORMATION
Part no: DPY XXX
Description Camera
Project Filip
Forecast dated tbd
Leadtime, Call off. Days 10
Leadtime, Prod. Weeks 12
Liability per 30th March 2003
Product Price 10,9
Leadtime Months 1 2 3 4 5 6
Accumulated BOM cost
per month, (USD) 0 0 0 0 0 0
% liability per month over
leadtime 100% 70% 40% 30% 0% 0%
Forecast month April May June July August September
Average forecast per
month 0 0 0 0 0 0
Liability per month, (USD) 0 0 0 0 0 0
Total liability. (USD) 0
Delta 0-12,
Leadtime 5-12,9-12,
Component Part no Weeks Price, USD 13-16
- ------------------------------------------------------------------------------------
Argus LI COB 16 1,75 1,75
Sensor 12
Flash Memory 12 0,5
RAM Memory 12
Lens 12
Tan Cap 9
Regulator 9
Regulator 9 2,25
Tact Switch 8
Crystal 8
8
8 0 2,25
PCB 4 0,45
4
4
4
4 2,7