Common use of Component Sourcing Clause in Contracts

Component Sourcing. If agreed upon by the parties and set forth in the applicable Statement of Work: (i) Turnkey Components shall be purchased only from SPANSION-approved vendors; (ii) Supplier shall not utilize a Turnkey Component vendor or purchase any Turnkey Component item other than an item specifically approved by SPANSION without obtaining prior written approval from SPANSION; (iii) absent an agreement to the contrary in the applicable Statement of Work, Supplier shall issue purchase orders to SPANSION-approved vendors for sufficient quantities of Turnkey Components, taking into account manufacturer lead-times, so as to ensure Turnkey Component availability as necessary to meet SPANSION forecast requirements as set forth in the applicable Statement of Work; (iv) unless otherwise agreed in the applicable Statement of Work, when the applicable manufacturer has established minimum order quantities for a Turnkey Component, Supplier may order that Turnkey Component in quantities that exceed SPANSION’s forecasted requirements by up to five percent (5%); and (v) any order of Turnkey Components that exceeds the quantity percentage in the previous sentence requires the prior written approval of SPANSION. Unless otherwise agreed by SPANSION in writing, any Turnkey Components purchased by Supplier not in accordance with this subsection shall be the responsibility of the Supplier; associated costs shall not be passed on to SPANSION. SPANSION - ChipMOS CONFIDENTIAL SPANSION - ChipMOS Assembly and Test Services Agreement

Component Sourcing. If agreed upon by the parties and set forth in the applicable Statement of Work: (i) Turnkey Components shall be purchased only from SPANSION-approved vendors; (ii) Supplier shall not utilize a Turnkey Component vendor or purchase any Turnkey Component item other than an item specifically approved by SPANSION without obtaining prior written approval from SPANSION; (iii) absent an agreement to the contrary in the applicable Statement of Work, Supplier shall issue purchase orders to SPANSION-approved vendors for sufficient quantities of Turnkey Components, taking into account manufacturer lead-times, so as to ensure Turnkey Component availability as necessary to meet SPANSION forecast requirements as set forth in the applicable Statement of Work; (iv) unless otherwise agreed in the applicable Statement of Work, when the applicable manufacturer has established minimum order quantities for a Turnkey Component, Supplier may order that Turnkey Component in quantities that exceed SPANSION’s forecasted requirements by up to five percent (5%); and (v) any order of Turnkey Components that exceeds the quantity percentage in the previous sentence requires the prior written approval of SPANSION. Unless otherwise agreed by SPANSION in writing, any Turnkey Components purchased by Supplier not in accordance with this subsection shall be the responsibility of the Supplier; associated costs shall not be passed on to SPANSION. SPANSION - ChipMOS CONFIDENTIAL SPANSION - ChipMOS Assembly and Test Services AgreementChipMOS