Common use of Further Development Clause in Contracts

Further Development. It is acknowledged that the Customer desires that the Supplier shall expedite its current miniaturization plan for the mobile units (2 ASICs - digital and RF) preferably with the target to start testing of the prototypes in December, 2004 with mass production starting in the third quarter of 2005. The schedule of supply of Korean version of the mobile units, based on the above ASICs, will be agreed upon between the Parties. The Parties agree that the mass production of base stations and handsets for Korean and other markets in the Region shall be done in Korea, under mutual agreement between the Parties. The Parties further agree that the mobile units should be continuously miniaturized after the initial plan described above so that the mobile units can be ultimately integrated into mobile and stationary assets, and any other applications. The terms and conditions for further development and improvement of Base Station system and mobile units shall be mutually discussed and agreed between the Parties.