EXHIBIT 4.25
Page 1 of 7
19 September 2003
SPECIFIC SERVICE AGREEMENT
BETWEEN
SONY ERICSSON MOBILE COMMUNICATIONS AB
(HEREINAFTER REFERRED TO AS "SONY ERICSSON")
AND
NAMTAI ELECTRONIC (SHENZHEN) COMPANY LTD.
(HEREINAFTER REFERRED TO AS THE "SUPPLIER")
REGARDING PROJECT "JI-LONG"
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19 September 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 ............................. 5
15. TERM OF AGREEMENT AND TERMINATION .................. 5
ENCLOSURES:
Enclosure 2.3 Project Plan, 1/10053-FCP101XXX Latest Edition
Enclosure 10.1 Prices and Price model
Enclosure 14.1 Purchase of components
Enclosure 14.2 Forecast Flexibility & Liability model
Page 1 of 7
19 September 2003
SPECIFIC SERVICE AGREEMENT
made as of 19th September 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
principal office at Nya Vattentornet, S-221 88 Lund, Sweden, hereinafter
referred to as "Sony Ericsson",
and
NAMTAI ELECTRONIC (SHENZHEN) COMPANY LTD., a corporation duly incorporated and
existing under the laws of The Peoples' Republic of China ("PRC") and having its
registered officer at Gu Su Industrial Estate, Xinan, Baoan, Shenzhen, PRC
(hereinafter referred to as the "Supplier").
(hereinafter referred to as the "Supplier").
WHEREAS:
1. Ericsson and Namtai Electronic & Electrical Products Ltd 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 and duly assigned
to Namtai Group Management Ltd, Hong Kong at 16th July 2003.
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.
Page 2 of 7
19 September 2003
"PRODUCT", means the Bluetooth Headset Ji-Long, developed by Sony
Ericsson and as further specified in this Agreement.
"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 Forecast, Flexibility & Liability 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 is liability for 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
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19 September 2003
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.
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
Page 4 of 7
19 September 2003
10.2 Price review
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
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19 September 2003
14. PURCHASE OF COMPONENTS
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
authorized 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: 19th September 2003 Date: 19th September 2003
Place: Shenzhen, China Place: Lund
NAMTAI ELECTRONIC SONY ERICSSON MOBILE
(SHENZHEN) CO. LTD. COMMUNICATIONS AB
/s/ Karene Wong /s/ Matho Gylling
- -------------------- -------------------------
KARENE WONG Matho Gylling
08-Dec-03 16-08-03
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.
Price of 18.77
Prices shall be updated during the development work.
Tooling cost: 80300 USD for a production capacity of 100k units per month.
Production Jig : 10000 USD for a production capacity of 100k units per months.
Tooling shall be amortized over a fixed amount of units of 100k, to be defined
and added onto the product price.
Enclosure 10.1 A
Price model
1 MATERIAL COST
Bill of material 15.5103
Material scrap 1% 0.1551
Material burden 1.5% 0.2327
TOTAL MATERIAL COST 15.9000
=======
2 LABOUR COST
PROCESS RATE (USD) LABOUR TIME
SMT 0.003/chip 0.6020
Final assy. 4.24/hour 0.6590
Testing 4.24/hour 0.5410
Packaging 4.24/hour 0.1293
TOTAL LABOUR COST 1.9300
=======
3 FREIGHT COST
According to enclosure 0.0700
=======
4 FINANCIAL COST
1 .5% of bill of material for 60 days credit
0.75% of bid of material for 30 days 0.1200
sea shipment. IF APPLICABLE =======
0.375% of bill of material for 15
days sea shipment. IF APPLICABLE
5 PROFIT
4.8% of bill of material 0.7500
=======
TOTAL UNIT PRICE 18.7700
=======
TOOLING COST (FOR INFORMATION ONLY) 80,300
=======
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
3. Bluetooth chip set
4. Battery
Sony Ericsson will advise about agreements with component supplier and
valid prices during the project.
Enclosure 14.2,
Forecast, Flexibility & Liability model
Sony Ericsson's forecast and production planning process, named Seihan
Process is based upon constraint planning, i.e. the planning process
takes all constraints regarding the product, components, manufacturing
capacity, and other thereto related matters of Sony Ericsson entire
supply chain. The Seihan Process operates with a six months planning
period.
This Forecast, Flexibility & Liability model, the Model, defines the
responsibilities and undertaking of both Parties with regard to
forecasts, flexibility and lead-times.
The components covered by this Model shall solely be used for the
manufacturing of the Product. See enclosed Excel sheet, Enclosure 14.2A
defining the Model. Components included in the Model shall have a
significant impact upon the Product price and/or the applicable
delivery lead-time. Standard components shall not be included in the
Model. Volume figures, component lead-times and prices shall be updated
on a monthly base by Sony Ericsson. (Seller shall provide input for
lead-times.)
Sony Ericsson shall issue a new Model the last business day of each
month, with updated forecast volumes, prices and lead-times for the
following six months. Prices and lead times shall be agreed with
supplier prior to such update.
If the forecast proposal during the ramp-up period, (normally three
months from the RTL-date) is higher than the latest agreed flexibility
limits or production capacity Sony Ericsson may issue a forecast
proposal to Supplier in order for Supplier to confirm if the
availability of the necessary production capacity. This forecast
proposal shall be communicated in due time before the Model shall be
issued at the end of each month.
Supplier undertakes that for all components listed in the Model
actively work for to reduce the lead-time for each component in order
to increase the flexibility of production process and to reduce its own
financial exposure. The agreed objective, which is not a binding
commitment of the Supplier, shall be to reduce lead-time by 20%
annually.
If Supplier does not receive the purchase orders in the quantity amount
as stated in the forecast or any part thereof for any month within the
agreed lead-time, the Supplier shall withhold purchase of components
for that month and for subsequent months in the excess of the purchase
orders received. For purpose of clarification; The forecasted volume do
not constitute a commitment to buy the Product, deviations is likely to
appear
It is recommended that purchase orders for component shall be placed at
component suppliers on weekly bases to enable high flexibility. Seller
to align amount of components in stock and on PO with amount of
Products on order and in production considering the applicable
lead-time for each component
Supplier shall always have an obligation to reallocate any components
in stock and on order which becomes in excess due to changes in
Enclosure 14.2,
Forecast, Flexibility & Liability model
forecasted volumes within (above) the flexibility limit. The agreed
flexibility limit each month is 60% of the forecasted volume of the
previous months forecast. For any components in excess, covered by the
Model but outside the flexibility limit, Sony Ericsson shall bear
liability for the cost of the excess components outside the flexibility
limit, provided the Model is rejected as defined below. Sony Ericsson
may allocate these excess volume within (above) the flexibility limit
to subsequent months on the condition that such excess volume shall not
be reallocated over any period more than 6 months thereafter.
In case of sudden, unforeseen events which would significantly change
the forecast volume or call off quantities during a calendar month, the
Model shall be updated and agreed by the parties to reflect the status
at such time, (week) by inserting the current week in the Model. The
forecasted volume for each month as stated in the latest agreed Model
shall be adjusted on a prorata basis to match the current week.
The Supplier shall within three days from receipt of a new Model review
and confirm the acceptance of the same. However, if the forecasted
volume in the new Model is without (below) the 60% flexibility limit,
Supplier may reject the new Model and the following shall apply;
(Enclosure 14.2B is an illustration of the application of the Model in
various scenarios)
- Supplier undertakes to use his best commercial effort to
reallocate, divest and cancel any excess component due to the new
forecast provided by Sony Ericsson. Any remaining components
(calculated on a 4-weeks basis) which are covered by the Model shall be
kept in stock free of charge for the first three months following the
rejection of the new Model. After this three months period Supplier may
agree to the liability undertaking by Sony Ericsson as set out in the
latest agreed Model. Such liability undertaking is calculated as
defined in the latest agreed model.
- Sony Ericsson will assume liability for the scrapping of
excess components covered by the Model provided that Sony Ericsson has
given the Supplier a written approval to scrap. Sony Ericsson maximum
liability shall always be limited to the direct cost for the
components; taking into consideration the applicable lead-times and the
forecast volume all as defined in the Model.
- Sony Ericsson shall always have the option to have any excess
components assembled into finished Products at agreed price instead of
scrapping the components.
- Supplier may invoice (30 days net) Sony Ericsson for any
components covered by this Model and still remaining after three months
or at the end of the undertaking
Any non insignificant delay in delivery of the Products, caused by
Supplier shall fully relieve Sony Ericsson from its liability under
this Article.
Any undertaking by Sony Ericsson and/or Supplier as defined herein
shall be valid until for 30th December 2004.
Enclosure 14.2,
Forecast, Flexibility & Liability model
Supplier may invoice Sony Ericsson for any components left at 30th
December 2004 and covered by the last agreed Model within 30 days
thereafter and Sony Ericsson shall settle any such invoice within 30
days from the date of invoice. The Supplier shall deliver the concerned
components as advised by Sony Ericsson, FCA "HK / SZ" acc. to
INCO-terms 2000.
Enclosure 14.2 A
Forecast, flexibility and Liability model
DEFINITION OF FORECAST, FLEXIBILITY & LIABILITY, THE MODEL
Fore cast & liability (?)
Part no: DPY XXX (?)
Description BT (?) (?)
Project A Long (T2 Up Version)
Date of "The Model" 30th November 2003
Week of "The Model" end of week 48 (N)
Leadtime, call off, Weeks 2
Leadtime, w/o f.c Weeks 16
Product Price 18.77
Month 1 2 3 4 5 6
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulated BOM cost 15,51025 15,51025 8,37829 6,21020 8,00000 0
per month, (USD)
% Liability per Month 100% 85% 80% 97% 50% 0%
Forecast week 49-01 (N+1-5) 02-05(N+6-9) 06-09 (N+10-13) 10-14(N10+14-18) 15-18 (N+19-22) 19-22(N+23+26)
Forecast month December January February March April May
Average forecast per month 0 0 0 50,000 50,000 50,000
Maximum liability per month, 0 0 0 301,195 150,000 0
(USD)
- ------------------------------------------------------------------------------------------------------------------------------------
Total liability, (USD) 451,195
Flexibility
Presently agreed/installed max. production capacity 25000 per week
Leadtime to increase capacity with 50% 16 Weeks
Leadtime to increase capacity with 100% 16 Weeks
Maximum flexibility within installed capacity to increase % of volume month 1
production per month, upword flexibility
Prices and Leadtime of selected components.
All Leadtimes are including 2 weeks for manufacturing.
Component NT Part no. Part no. Leadtime Weeks Price, USD
- ---------------- ---------------- --------------- -------------- ----------- --------
MULTICHIP MODULE 0107- 16 6.00000
"BFB 101"
MICROCIRCUIT 0107- 16
PCF(?)
Transistor 0103-BSH 10301 BSH103 14 0.06700
Transistor 0103-FDN 10301 FDN338P 14 0.09700
THERMISTOR 0214- 14 0.02620 6.21020
CHIP CAP 0309-0015(?)A111 12 0.00231
CHIP CAP 0309-2201BJA111 12 0.00500
Chip inductor 0406-22302191 LOH32CN4220K21L 12 0.03950
Transistor 0101-UMA 11N21 10 0.03400
Transistor 0101-BC857891 10 0.02200
Transistor 0101-2018TL21 (?) 10 0.06220
Transistor 0101-C(?)17091 (?) 10 0.0(?)00
DIODE SCH 010(?)-1P(?)11 (?) 10 0.09000
SUPPRESSOR VARISTOR 0213-567(?)0521 (?) 10 0.13500
LED 0 109-165HRY01 (?) 10 0.07(?)00
PUSH-BUTTON 1806-EVOPPK12 (?) 10 0.17949
MELTING FUSE 1916-05230303 (?) 10 0.0935(?)
TRANSISTOR 0101- (?) 10 0.02700
LDO REGULATOR 0107- 10 0.12000
RECTIFIER 0106- 10 0.07000
MULTILAYERPRINTBOAR 0601- 10 0.84000
XTAL 13MHZ 4x2.5x1mm 1903- 10 0.33(?)00 8.37829
(?) CAP 0305-3363(?) 8 0.12308
CHIP CAP 0309-1001BKA211 8 0.00550
CHIP CAP 0309-1002(?)KA211 8 0.01283
CHIP CAP 0309-10037ZA211 8 0.032(?)2
CHIP CAP 0309-1004(?)ZB211 8 0.01154
CHIP CAP 0309-0330BJA111 8 0.00942
CHIP CAP 0309-470(?)ZC211 8 0.032(?)
CHIP CAP 0309(?)BA111 8 0.00410
Chip inductor 0406-10002(?)f (?) 8 0.01000
Chip inductor 0406-680021C1 (?) 8 0.057500
PCB 8 0.084000
Battery 1712-GP 1588(?)1 (?) 8 0.93000 10.96527
CHIP RES 0210-00001J(?)1 6 0.00138
CHIP RES 0210-1001(?)A 6 0.01269
CHIP RES 0210-00101(?)1 6 0.00136
CHIP RES 0210-1003FA 6 0.00118
CHIP RES 0210-1002BA 6 0.0034(?)
CHIP RES 0210-22001B(?)1 6 0.00231
CHIP RES 0210-22021B(?)1 6 0.00923
CHIP RES 0210-22011B(?)1 6 0.00.462
CHIP RES 0210-00471J(?)1 6 0.00069
CHIP RES 0210-45021BB1 6 0.00231
CHIP RES 0210-00(?)21J(?)1 6 0.00069
CHIP RES 0210-0(?)201B(?)1 6 0.00231
CHIP RES 0210- 6 0.00090
CHIP RES 0210- 6 0.00(?)92
CHIP RES 0210- 6 0.00115
CONNECTOR 1803-03402K43 6 0.30500
SPEAKER 1921-131(?)0541 6 0.58000
MICROPHONE 1911-44052A62 6 0.3(?)538
TOP HOUSING NEW 6 0.4(?)23
BOTTOM HOUSING NEW 6 0.57077
DECORATIVE PANEL NEW 6 0.0(?)154
MIC BOOT NEW 6 0.05538
ACTION BUTTON NEW 6 0.03538
LIGHT GUIDE NEW 6 0.0348(?)
VOLUME UP NEW 6 0.113(?)5
VOLUME DOWN NEW 6 0.11.3(?)5
MIC DOOR NEW 6 0.113(?)5
HOOK BEARING NEW 6 0.113(?)5
SCREW 6214-0 (?)6403 6 0.02462
BEZEL BEZEL 6 0.06815
COVER SHIELD NEW 6 0.01(?)2
ANTENNA NEW 6 0.04(?)15
FLIP OUTSIDE NEW 6 0.041(?)15
FLIP INSIDE NEW 6 0.033(?)5
FLIP PLASTIC NEW 6 0.01(?)2
FLIP SHAFT NEW 6 0.05077
HINGE BASE NEW 6 0.1(?)7(?)
HINGE RUBBER NEW 6 0.0(?)
HOOK NEW 6 0.22923
HINGE JOINT NEW 6 0.02923
BATTERY FOAM NEW 6 0.00(?)
LIGHT GUIDE FOAM NEW 6 0.00585
CONNECTOR CLOTH NEW 6 0.0094
SEMC ICON 8.0mm 0.09(?)
Others (All + Bulk 0. (?)4
Packing)
15,51025
GRAND TOTAL 15.51025
Enclosure 14.2A
Forecast, Flexibility and Liability model
DEFINITION OF FORECAST, FLEXIBILITY & LIABILITY, THE MODEL.
FILL OUT YELLOW AND BLUE FIELDS
YELLOW FIELDS TO BE UPDATED MONTHLY
BROWN FIELDS CALCULATED BY FORMULA
FORE CAST & LIABILITY
Part no: DPY XXX
Description BT Headset
Project Ji Long (T2 Up Version)
Date of "The Model" 31st December 2003
Week of "The Model" week 01 (N)
Leadtime, Call off. Weeks 2
Leadtime, w/o f.c. Weeks 16
Product Price 18.77
Month 1 2 3 4
Accumulated BOM cost per
month, (USD) 15,51025 15,51025 8,37829 6,21020 6,21020
% Liability per Month 100% 85% 80% 97% 97%
Liability Amount =
Accumulated BOM Cost (*)
Liability % 15,5103 13,1837 6,7026 6,0239 6,0239
Forecast week 02-05 (N + 1-4) 06-09 (N+5-8) 10-14 (N+9-13) 15-18 (N+14-17)
Forecast month January February March April
Average forecast per
month 0 0 30 000 20 000 10 000
Maximum liability per
month, (USD) 0 0 201 079 120 478 60 239
Total liability, (USD) 471 796
FORE CAST & LIABILITY
Part no:
Description
Project
Date of "The Model"
Week of "The Model"
Leadtime, Call off. Weeks
Leadtime, w/o f.c. Weeks
Product Price
Month 5 6
Accumulated BOM cost per
month, (USD) 6,00000 0,00000 0,00000
% Liability per Month 50% 0% 0%
Liability Amount =
Accumulated BOM Cost (*)
Liability % 3,0000 0,0000 0,0000
Forecast week 19-22 (N+18-21) 23-27 (N+22-26)
Forecast month May June
Average forecast per
month 30 000 10 000 20 000
Maximum liability per
month, (USD) 90 000 0 0
Total liability, (USD)
FLEXIBILITY
Presently agreed/installed max. production capacity 25000 per week
Leadtime to increase capacity with 50% 16 Weeks
Leadtime to increase capacity with 100% 16 Weeks
Maximum flexibility within installed capacity to increase production
per month, upward flexibility. % of volume month 1
REMARKS :
1. THIS LATEST UPDATED MODEL IS ACCEPTABLE WITH THE ASSUMPTION THAT THE
REVISED QTY SHOULD BE WITHIN (ABOVE) FLEXIBILITY LIMIT (60%) OF PREVIOUS
MONTHS FORECAST.
THE NEW MODEL IS REJECTED IF THE REVISED QTY IS LESS THAN 60% OF PREVIOUS
FIGURES.
FOR EXAMPLE, THE PREVIOUS FIGURES IS 50K, THE LIMIT FOR REVISED QTY IS 30K.
2. BOTH PARTIES HAS AN OBLIGATION TO REALLOCATE OR REUSE EXCESS MATERIAL DUE
TO THE LOWER FORECAST AS DESCRIBE IN ENCLOSURE 14.2
Enclosure 14.2A
Forecast, Flexibility and Liability model
DEFINITION OF FORECAST, FLEXIBILITY & LIABILITY, THE MODEL.
FILL OUT YELLOW AND BLUE FIELDS
YELLOW FIELDS TO BE UPDATED MONTHLY
BROWN FIELDS CALCULATED BY FORMULA
FORE CAST & LIABILITY
Part no: DPY XXX
Description BT Headset
Project Ji Long (T2 Up Version)
Date of "The Model" 31st December 2003
Week of "The Model" week 01 (N)
Leadtime, Call off. Weeks 2
Leadtime, w/o f.c. Weeks 16
Product Price 18,77
Month 1 2 3 4
Accumulated BOM cost
per month, (USD) 15,51025 15,51025 8,37829 6,21020 6,21020
% Liability per Month 100% 85% 80% 97% 97%
Liability Amount =
Accumulated BOM Cost (*)
Liability % 15,5103 13,1837 6,7026 6,0239 6,0239
Forecast week 02-05 (N+1-4) 06-09 (N+5-8) 10-14 (N+9-13) 15-18 (N+14-17)
Forecast month January February March April
Average forecast per
month 0 0 29 000 21 000 8 000
Maximum liability
per month, (USD) 0 0 194 376 126 502 48 191
Total liability, (USD) 456069
FORE CAST & LIABILITY
Part no:
Description
Project
Date of "The Model"
Week of "The Model"
Leadtime, Call off. Weeks
Leadtime, w/o f.c. Weeks
Product Price
Month 5 6
Accumulated BOM cost
per month, (USD) 6,00000 0.00000 0,00000
% Liability per Month 50% 0% 0%
Liability Amount =
Accumulated BOM Cost (*)
Liability % 3,0000 0,0000 0,0000
Forecast week 19-22 (N + 18-21) 23-27 (N+22-26)
Forecast month May June
Average forecast per
month 29 000 13 000 16 000
Maximum liability
per month, (USD) 87 000 0 0
Total liability, (USD)
FLEXIBILITY
Presently agreed/installed max. production capacity 25000 per week
Leadtime to increase capacity with 50% 16 Weeks
Leadtime to increase capacity with 100% 16 Weeks
Maximum flexibility within installed capacity to increase production
per month, upward flexibility. % of volume month 1
REMARKS :
1. THIS NEW MODEL IS REJECTED SINCE THE REVISED QTY IS WITHOUT (BELOW)
FLEXIBILITY LIMIT (60%) OF PREVIOUS MONTH FORCAST.
FOR EXAMPLE, THE PREVIOUS FIGURES IS 50K, THE LIMIT FOR REVISED QTY IS 30K.
SINCE THIS MODEL IS REJECTED IT IS NOT VALID, IE THE LATEST AGREED MODEL, IE
END NOVEMBER WOULD BE VALID.
Enclosure 14.2A
Forecast, Flexibility and Liability model
DEFINITION OF FORECAST, FLEXIBILITY & LIABILITY, THE MODEL.
FILL OUT YELLOW AND BLUE FIELDS
YELLOW FIELDS TO BE UPDATED MONTHLY
BROWN FIELDS CALCULATED BY FORMULA
FORE CAST & LIABILITY
Part no: DPY XXX
Description BT Headset
Project Ji Long (T2 Up Version)
Date of "The Model" 31st December 2003
Week of "The Model" week 01 (N)
Leadtime, Call off. Weeks 2
Leadtime, w/o f.c. Weeks 16
Product Price 18,77
Month 1 2 3 4
Accumulated BOM cost per
month, (USD) 15,51025 15,51025 8,37829 6,21020 6,21020
% Liability per Month 100% 85% 80% 97% 97%
Liability Amount =
Accumulated BOM Cost (*)
Liability % 15,5103 13,1837 6,7026 6,0239 6,0239
Forecast week 02-05 (N+1-4) 06-09 (N+5-8) 10-14 (N+9-13) 15-18 (N + 14-17)
Forecast month January February March April
Average forecast per
month 0 0 29 000 21 000 8 000
Maximum liability per
month, (USD) 0 0 194 376 126 502 48 191
Total liability, (USD) 456 069
FORE CAST & LIABILITY
Part no:
Description
Project
Date of "The Model"
Week of "The Model"
Leadtime, Call off. Weeks
Leadtime, w/o f.c. Weeks
Product Price
Month 5 6
Accumulated BOM cost per
month, (USD) 6,00000 0,00000 0,00000
% Liability per Month 50% 0% 0%
Liability Amount =
Accumulated BOM Cost (*)
Liability % 3,0000 0,0000 0,0000
Forecast week 19-22 (N+18-21) 23-27 (N+22-26)
Forecast month May June
Average forecast per
month 29 000 13 000 16 000
Maximum liability per
month, (USD) 87 000 0 0
Total liability, (USD)
FLEXIBILITY
Presently agreed/installed max. production capacity 25000 per week
Leadtime to increase capacity with 50% 16 Weeks
Leadtime to increase capacity with 100% 16 Weeks
Maximum flexibility within installed capacity to increase production
per month, upward flexibility. % of volume month 1
REMARKS :
1. THIS NEW MODEL IS REJECTED SINCE THE REVISED QTY IS WITHOUT (BELOW)
FLEXIBILITY LIMIT (60%) OF PREVIOUS MONTH FORCAST.
FOR EXAMPLE, THE PREVIOUS FIGURES IS 50K, THE LIMIT FOR REVISED QTY IS 30K.
SINCE THIS MODEL IS REJECTED IT IS NOT VALID, IE THE LATEST AGREED MODEL, IE
END NOVEMBER WOULD BE VALID.