1
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 10.13
MASTER PRODUCT PURCHASING, TESTING
AND ORDER FULFILLMENT AGREEMENT
Effective Date: November 23, 1999 Term: 1 year
(with possible renewal periods)
This Master Product Purchasing, Testing and Order Fulfillment Agreement
("Agreement") is entered into between Netgear, Inc., a Delaware corporation
("Netgear"), and Celestica Asia, Inc., a Delaware corporation, on behalf of
itself and its subsidiaries and Affiliates ("Celestica") and is made as of the
Effective Date for the Term. Subject to the terms and conditions set forth in
this Agreement, the parties have caused this Agreement to be executed by their
duly authorized representatives on the date(s) shown below. The parties may
execute this Agreement in two (2) or more counterparts (no one of which need
contain the signatures of all parties), each of which will be an original and
all of which together will constitute one and the same instrument.
NETGEAR, INC. CELESTICA ASIA, INC.
Signature /s/ ▇▇▇▇▇▇▇ ▇▇ Signature /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
-------------------------- --------------------------
Printed ▇▇▇▇▇▇▇ ▇▇ Printed ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
-------------------------- --------------------------
Title V.P. Title PRESIDENT, CELESTICA ASIA
-------------------------- --------------------------
Date 11-23-99 Date 11-16-99
-------------------------- --------------------------
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇.▇. ▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇, ▇▇. 95131
▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
2
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
In consideration of their mutual representations, promises and obligations,
Netgear and Celestica agree as follows:
1. SCOPE OF THE AGREEMENT
This Agreement sets forth the terms and conditions pursuant to which Celestica
shall provide Netgear full turnkey production and fulfillment services (the
"Services") as listed below in a timely, competent and cost effective manner at
several different locations around the world, all as more fully described in the
Statement of Work attached hereto as Exhibit 1:
- planning and purchasing management
- inventory management
- product testing and inspection
- product fulfillment and logistics
- returns processing
- supplier performance management
- quality program and management
This Agreement contains those terms that shall pertain to all of Celestica's
locations. Celestica will initially conduct the majority of the Services in
Kowloon, Hong Kong and San Jose, California. The parties may agree in the future
if necessary to enter into subordinate agreements which contain specific terms
unique to a site ("Site Agreement"), such as a list of products configured at
the site, support teams, and the specific reporting requirements relevant to the
site. Each such Site Agreement is hereby incorporated by reference into this
Agreement. The terms of this Agreement shall take precedence over those of the
Site Agreement unless specifically provided otherwise in the Site Agreement; the
terms of the Site Agreement shall take precedence over the terms of any Build
Plan, acknowledgment, invoice or other document.
2. DEFINITIONS
The following words and expressions shall have the meanings set forth
below:
"Affiliate" means, with respect to a party hereto, a corporation that
directly or indirectly controls, is controlled by, or is under common control
with, that party.
"Build Plan" means the build plan provided by Netgear to Celestica for
each model of Product substantially in the form set forth as Exhibit 4 hereto,
which specifies the quantity of Product to be purchased and the part number.
"Celestica's Systems" means all software and systems used by Celestica
in the performance of this Agreement, excluding any software or systems provided
to Celestica by Netgear.
"Confidential Information" means a party's proprietary, confidential or
trade secret information.
"Customer" means a customer purchasing Netgear Products.
"Materials" shall mean any components and other materials comprising or
comprised in Products.
"Netgear Inventory Location" means the physical location (identified by
Celestica) where Products will be staged prior to shipment to Customers.
"Netgear Proprietary Information" means any information, technology,
processes, or other proprietary property, including copyrights, trade secrets,
know-how, mask work rights, moral rights patents and/or patent applications in
any form or medium, developed or acquired by Netgear or its licensors from the
Production Effort.
3
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
"Order" shall mean any order for Products placed by a Customer in
accordance with the temps of this Agreement.
"Prices" shall mean the prices for Products and/or Services and/or
non-recurring expenditure (including without limitation, tooling and fixtures
and other agreed items) agreed between the parties from time to time.
"Products" shall mean the items listed in Exhibit 2 and described in the
relevant Specification.
"Specification" means Product technical information and related services
and shall at minimum consist of the ▇▇▇▇ of materials, test procedures, quality
goals, assembly documentation, circuit board art work, Gerber files, assembly
and fabrication drawings, schematics, other design documents, business plan, and
Services, as specified. The Specification for each Product shall be provided by
Netgear and shall be timely reviewed by Celestica and agreed to by both parties.
3. PRODUCTION EFFORT, MATERIALS PROCUREMENT, INSPECTION AND TEST OF THE
PRODUCTS, AND PRODUCT CHANGES
3.1. PRODUCTION EFFORT
Celestica shall be responsible for the procurement, test and inspection of the
Products (collectively, the "Production Effort") and shall ensure that each
Product conforms to the Specification applicable to such Product at the time of
manufacture. Celestica shall perform the Production Effort in accordance with
this Agreement.
3.2. PRODUCT PURCHASING
Celestica is solely responsible for performing purchasing services which shall
include: placing and expediting purchase orders with OEMs and other suppliers,
accepting shipments, managing quality issues, achieving cycle time reductions,
measuring and communicating supplier performance, canceling and rescheduling
product shipments in support of schedule changes, and other supplier management
services that the Parties agree are relevant and appropriate. Netgear hereby
authorizes Celestica to purchase Products and Netgear specified integrated
circuits (I.C.'s) as necessary to fulfill Netgear forecasts.
Any OEM or other source of supply shall be jointly qualified and managed by
Celestica, subject to Netgear's prior written approval and consistent with the
quality requirements set forth in the relevant Product Specification. Netgear's
approval shall normally be provided within fourteen (14) days and, in any event,
shall not be unreasonably withheld or delayed. The Parties acknowledge that in
some instances only the component of a specified supplier may be used in a
Product.
Netgear or a designated third parry may perform inspections ("Source
Inspection") of business systems and processes of a supplier or subcontractor
facility whenever Netgear decides it is necessary. The Source Inspection shall
be conducted during normal business hours and with prior notice to Celestica and
may require participation by Celestica.
3.3. SCOPE OF TEST AND INSPECTION
Celestica shall manage the execution of the test and inspection process for each
Product, which includes testing Products, test capacity planning, and performing
preventative maintenance on the test equipment. Celestica warrants that it will
perform each and every test and inspection in conformance to the process and for
the quantities identified in the relevant Specification. All Products delivered
to Netgear and/or its Customers shall have passed all applicable tests and
inspection in such Specification.
4
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
At the commencement of production of any Product, Netgear will qualify each
piece of test equipment and each test process for such Product. No such
equipment or process shall be changed or modified without the prior written
consent of Netgear.
Netgear shall provide certain Functional Test ("FT") equipment and test set ups,
including test scripts, loop back connectors, and cables.
Celestica will develop inspection capacity plans with every new Forecast (as
defined below). Celestica shall consider upside volume percentage, preventative
maintenance time, new product additions and holding of appropriate spare parts
as part of its inspection capacity plan.
3.4. TEST EQUIPMENT MAINTENANCE COSTS
Celestica agrees to be responsible for and to pay for all costs of maintaining
all inspection equipment and related materials and shall perform preventative
maintenance, which shall include, without limitation, repair and replacement of
worn loopback connectors, cables, and backplanes or any other failing components
due to normal wear. Notwithstanding the above, Netgear shall pay to upgrade or
replace test equipment or fixtures which are rendered outdated because of
Product design changes or changes in test requirements.
3.5. TEST RECORDS FOR PRODUCTS
Celestica shall maintain adequate authenticated inspection and test documents
for Products and shall make such documents available to Netgear upon request for
a period of one year after the delivery of the last Product purchased, unless
otherwise directed by Netgear.
3.6. CHANGES TO A PRODUCT
Either party may propose in writing a change to the design, manufacture, or test
procedure of any Product. The other party shall respond in writing within five
business days to any such proposal. Where necessary and appropriate, Netgear
shall initiate either an engineering change order ("ECO") or a temporary change
to the Specification ("Deviation"). Celestica shall develop a list of the
process steps, an estimate of the time necessary to complete the change, the
hourly rate to complete the work, any excess or obsolete Materials (list and
cost), and the increase or decrease, if any, in the price of the Products
affected. Upon receipt of Celestica's response, Netgear shall determine if it
wants to go forward with the change. If Netgear does want the change, the
parties shall negotiate any open issues and set the implementation date.
If either Netgear or Celestica identifies a change that must be implemented on a
Product for reasons of safety ("Safety Change"), the parties shall cooperate so
as to effect such Safety Change as soon as possible after discovery. Once such a
Safety Change is discovered, no affected Products shall be manufactured or
shipped until such Safety Change has been implemented. The parties shall
cooperate in the implementation of such Safety Change on any Products shipped
prior to discovery of the hazard. If a Safety Change is required due to
Celestica's manufacturing process, then Celestica shall pay all costs associated
with such change, otherwise, Netgear shall pay the costs associated with the
Safety Change.
4. BUSINESS MANAGEMENT PROCEDURES
4.1. METHODOLOGY
The parties intend to plan for and make corporate-wide business decisions as
described in this Section 4, "Business Management Procedures". To manage the
technical and business changes, Netgear and Celestica shall:
5
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
(a) Assign, and in most cases dedicate, business management teams whose goal is
to provide consistent and efficient responses to program requirements.
(b) Conduct quarterly business reviews for each business management team.
(c) Create a process to communicate about and resolve issues promptly and to
drive continuous improvement of the day-to-day operation.
(d) Comply with reporting requirements as outlined in this Agreement.
(e) Meet annually at the executive level to exchange business strategies with
the specific purpose of working to ensure that each party's business goals can
be met.
4.2. PRODUCT QUALITY GOAL
Celestica agrees to adopt the quality assurance procedures and perform the
quality control tests (collectively the "QA Procedures") described in Exhibit 1
("Statement of Work"). The QA Procedures may be amended by mutual agreement of
the parties from time to time, to ensure that all Products conform to the
Specifications.
4.3. QUARTERLY REVIEWS
Celestica and Netgear shall, in conjunction with each other, conduct quarterly
operations reviews of the business processes and procedures of both Celestica
and Netgear with the intent to improve overall supply chain performance. The
review shall include, at a minimum, performance measurements of quality,
delivery, customer satisfaction, costs, capacity, innovations and Price
reductions for Products. Line capacity, test capacity, and staff allocation, and
the plan to meet future requirements in these areas, shall be reviewed.
The quarterly reviews shall be held in person at a Netgear's facility and
Celestica agrees to comply at its own cost.
4.4. TARGET COST REDUCTION
Celestica agrees to participate in periodic cost reviews with the intent to
reduce the costs of the Services provided hereunder to an amount at or below the
cost identified by Netgear. Such reviews shall be held in person at a Netgear's
facility and Celestica agrees to comply at its own cost.
4.5. LOCATION OF CELESTICA'S OPERATIONS
Celestica shall initially perform the Services for all Products from its
facility in Kowloon, Hong Kong. Celestica shall transfer Products for North and
South American Order Fulfillment to its San Jose, California facility. Products
for all other Orders will be fulfilled from Celestica's Kowloon, Hong Kong
facility or such other facilities as the parties may agree upon from time to
time. Any deviation from this policy must be authorized by Netgear in writing.
4.6. RESOURCES AND PRODUCTION SUPPORT
Throughout the life cycle of each Product, Celestica shall provide production
capacity, yield information, corporate resources, necessary administrative
processes, and adequate, qualified, timely staffing for each Product's
introduction and the Production Effort in accordance with the terms of this
Agreement. Celestica shall provide separate functional resources in support of
new Products and mature Products.
6
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
5. BUILD PLANS
The parties acknowledge that they will continue to develop new procedures to
increase schedule flexibility, reduce lead times, and improve forecasting. The
parties shall incorporate such terms as an amendment to this Agreement or to the
Site Agreements, if any, upon completion. Until such time, the parties shall
manage the delivery of Products under the provisions of this Article 5.
5.1. THE BUILD PLAN
Netgear shall issue to Celestica on a monthly basis a Build Plan for each model
of Product covering a minimum of two months in advance of the desired ship date.
Since current OEM supplier lead times are 60 days, each Build Plan issued by
Netgear will be authorization for Celestica to issue purchase orders to OEM
suppliers to cover the 60 day manufacturing lead time for products. The quantity
of Products and the scheduled delivery dates for the Products purchased by
Celestica will satisfy Netgear's projected requirements for the products as
contained in the Build Plan. The Build Plan may be issued in writing, by mail or
facsimile, or by electronic means as the parties may from time to time agree.
Netgear shall have no obligation to purchase any Products from Celestica if the
products were purchased in excess of the 60 day manufacturing lead time except
as specified on such Build Plans placed in accordance with the terms of this
Agreement. Celestica will notify Netgear of acceptance of a Build Plan within
two business days of receipt of the Build Plan.
Each Build Plan issued shall be governed by the terms of this Agreement as
modified by the applicable Site Agreement (if any) to the extent of any conflict
between the terms. The parties hereby expressly object to any additional or
different terms contained in any Build Plan or acknowledgment other than as
authorized by this Agreement and agree that such additional or different terms
shall be of no effect.
Celestica agrees to accept a Build Plan for each model of Product and to sustain
the ability to procure and inspect Products and fulfill Orders for each model of
Product for a minimum of one year. After one year, if Celestica desires to not
maintain its ability to perform these services for a particular model of
Product, Celestica will provide Netgear with written notification 180 days prior
to the date Build Plans will no longer be accepted. Upon Netgear's request,
Celestica shall ship to Netgear all documentation about the procurement,
inspection and test of the Product. Documentation shall include any bills of
material generated by Celestica, process instructions, test procedures and all
other relevant documents.
5.2. FORECASTS OF PRODUCT REQUIREMENTS
Netgear shall deliver to Celestica with its initial Build Plan for any model of
a Product, a non-binding, rolling, forecast covering a period of four months
beyond the Build Plan ("Forecast") which Celestica will use to communicate
forecasted requirements to OEMs and product suppliers. Each Forecast shall be a
good faith estimate of the anticipated requirements for the Products) listed for
the periods indicated.
5.3. RESCHEDULE OR CHANGES TO BUILD PLAN
Netgear may make changes to the scheduled shipment of products in the Build
Plan. Mix changes are acceptable but must be mutually agreed upon within 30
calendar days. If such a change represents an acceleration or increase,
Celestica shall make all reasonable commercial efforts to meet the request,
subject to material and capacity availability.
Based on the requested change, Celestica shall provide an "excess and on order"
inventory report on the third day after change to Build Plan. If Netgear reduces
or reschedules a requirement in the Build Plan prior to the scheduled delivery
date, Celestica shall take all commercially reasonable steps to anticipate and
identify all potential liability of Netgear for Materials or Products on order
and minimize charges to Netgear which result from the change to the Build Plan.
Provided that, and to the extent that Celestica complies with its obligations in
the preceding sentence, and provided further that the aggregate out-of-pocket
costs incurred by Celestica do not exceed the total purchase price of the
Products impacted by the change, Netgear agrees to pay the out-of-pocket costs
incurred by Celestica for cancellation of Materials or Products, and for
proprietary materials which could not be returned or used in other
7
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
products and at other sites of Celestica and for any Materials on order which
could not be canceled. Notwithstanding the foregoing, Celestica agrees that
Netgear may reduce or reschedule any product forecast beyond the Build Plan
without cost or liability to Netgear.
5.4. EXCESS INVENTORY CARRYING COSTS
If Netgear cancels or reschedules the Build Plan and as a result Celestica has
excess material inventory ("Excess Inventory") that is not fully consumed [*]
Netgear agrees to either purchase the Excess Inventory, [*] calculated in U.S.
dollars at the annual rate of the United States prime lending rate plus [*]%.
Excess Inventory shall be calculated as the result of [*]. Netgear is obligated
to purchase inventory [*].
6. PRICES
6.1 PRICES FOR PRODUCTS
The price for each Product shall be as set forth on the price list attached
hereto as Exhibit 3 (the "Price List"). Celestica and Netgear agree that the
price generally includes all Materials cost and Celestica's service fee.
Celestica's service fee generally includes all overheads, allocations and two
months inventory carrying costs with the exception of supplier inbound freight,
customer outbound freight (Japanese customers), Celestica interplant freight,
and duties. Celestica agrees to provide a breakdown of actual cost for each
Product in final form on or before Monday of week ten in each quarter to meet
Netgear's standards setting calendar requirements.
6.2 PRODUCT PRICE CHANGES
The prices of a Product may change over the term of this Agreement but only by
written agreement of the parties. If the parties agree to change the price of a
Product, the new price and the effective date shall be set forth in the new or
amended Price List within five days of the agreement to change. In its sole
discretion, Netgear may buy down Celestica's existing inventory and work in
process ("WIP") and any open Orders by issuing a purchase order equal to the
difference between the existing standard price and the new lower price. Product
prices are to be reviewed on a quarterly basis by both parties. Differences
between the price paid by Netgear and the price paid by Celestica to the OEM
suppliers will be charged to or reimbursed to Netgear on a quarterly basis.
Additionally, the Celestica service fee will be reviewed and adjusted as agreed
to by both parties on a quarterly basis.
6.3. CURRENCY EXCHANGE RATE
All prices shall be in US$
CONFIDENTIAL INFORMATION
Page 7
8
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
6.4. COMPONENT SALES AND COMPONENT PROCUREMENT FEE.
Netgear negotiates costs directly with manufacturers of semiconductor
components. These component costs are frequently less than the costs for the
same component if purchased by an OEM supplier from the same manufacturer.
Celestica will purchase components based upon receipt of a monthly Build Plan
from Netgear, which will contain quantity requirements covering the lead time of
each component part. Celestica will sell these component parts to the OEM
suppliers authorized by Netgear. The component parts will be sold to the OEM
suppliers at a price authorized by Netgear. Any and all profit or loss on the
sale of these component parts will be remitted to Netgear. Celestica's component
procurement fee will be [*]% of the component cost paid by Celestica on their
purchase order with the component manufacturer. Payment of the component
procurement fee is made net [*] days from the date of shipment of the components
to the authorized OEM supplier. Celestica will provide notification of component
shipments to OEM suppliers and to Netgear on the date of shipment.
6.5. MANAGEMENT OF COMPONENT PRICE REDUCTIONS
Not applicable
7. ORDER FULFILLMENT AND PAYMENT
7.1. ORDER FULFILLMENT AND RETURNS
Netgear's call centers in the U.S. will handle all of Netgear's Order processing
functions. Celestica will be responsible for fulfilling all Orders including the
preparation of all shipping documents and coordination with a common carrier.
Immediately prior to preparation of a Customer invoice, Celestica will conduct a
ship transaction between the Celestica system and the Netgear system (the
"SunSystem") and generate an invoice to Netgear for the same product.
7.2. PAYMENT
Payment shall be made based upon a purchase order receipt transaction performed
in Netgear's SunSystem to transfer products into a Netgear Inventory Location.
Payment shall be made net 30 days [*] from Celestica, provided, however, that
payment shall not constitute acceptance of nonconforming products. All amounts
shall be calculated in US Dollars.
Netgear shall invoice Celestica upon return of products to Celestica and receipt
into Celestica's Systems. All amounts properly due shall be paid within 30 days
[*] from Netgear. Payment shall not constitute acceptance of nonconforming
products. All amounts shall be calculated in US Dollars. Netgear may, with the
approval of Celestica, choose to issue a debit memo against existing accounts
payable with Celestica rather than issuing an invoice for accounts receivable.
7.3. SHIPMENT SUCCESS REQUIREMENTS
Netgear requires that all shipments be made on the scheduled shipment day or up
to three days before the scheduled shipment day: Celestica shall make every
shipment on time; however, if Celestica fails to deliver Product on time due to
reasons which are within its reasonable control, Celestica shall pay to Netgear
the amount of the difference between normal shipping expense and expedited
shipping expense. If delays are not attributable to Celestica as set forth
above, then Netgear shall pay the difference between normal shipping expense and
expedited shipping expense.
CONFIDENTIAL INFORMATION
Page 8
9
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
7.4. TAXES AND DUTIES
Netgear will pay as a separate item on an invoice any tax lawfully imposed on
the sale of the Products or on the provision of Services to Netgear or will
provide Celestica with a certificate of exemption acceptable to the appropriate
taxing authority. Celestica agrees to provide reasonable assistance without
charge in any proceeding for the refund or abatement of any such taxes Netgear
is required to pay. Without limiting the generality of the foregoing, Netgear
shall have no obligation to pay taxes based upon Celestica's net income.
7.5. TITLE AND RISK OF LOSS AND SHIPMENT
Title to the Products will pass to Netgear upon delivery to the Netgear
Inventory Location. Prior to title passing, Celestica shall bear risk of all
loss, damage or theft. Shipping instructions shall be specified in the Build
Plan and Netgear will designate default shipping instructions. Celestica will
provide proof of shipment upon request and will provide reasonable assistance to
Celestica at no charge in any claim it may make against a carrier or insurer for
misdelivery, loss or damage to Products.
8. INVENTORY MANAGEMENT
Products will be received into the Netgear Inventory Location using purchase
order receipts on Netgear's SunSystem. Title will pass, and Netgear will take
financial ownership, and will be invoiced, only for Products received into the
Netgear Inventory Location on SunSystem purchase orders.
Products returned from Netgear Customers will be initially received into the
Netgear Inventory Location using the Sales Order Return transaction in
SunSystem. Celestica will have the responsibility to inspect, test, repackage or
return Products to suppliers based upon disposition of the return.
Sixty days of carrying costs associated with all Netgear Products held by
Celestica are included in the standard pricing contained in Section 6.1. All
financial obligations associated with product purchases or returns between
Celestica and its suppliers are the sole responsibility of Celestica.
9. TERM AND TERMINATION
9.1 TERM
This Agreement will commence on the Effective Date and continue for a period of
one year. Unless terminated earlier pursuant to the terms of this Agreement,
this Agreement will automatically renew for successive one-year periods upon
expiration of the term of this Agreement.
9.2 TERMINATION
A party shall be in default under this Agreement if it:
(a) ceases conducting business in the normal course, makes a general assignment
for the benefit of creditors, suffers or permits the appointment of a
receiver for its business or assets, or becomes subject to any proceeding
under any statute of any governing authority relating to insolvency or the
protection of rights of creditors; or
(b) fails to perform any material obligation required to be performed by it
under this Agreement for a period of 30 days after receipt of written
notice by the other party of such failure.
CONFIDENTIAL INFORMATION
Page 9
10
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
New Celestica AgmtV25
In such event, the non-defaulting party shall have the right to terminate this
Agreement immediately by giving written notice to the other.
9.3. EFFECT OF EXPIRATION OR TERMINATION
Upon expiration or any termination of this Agreement by either party:
(a) Netgear shall pay all undisputed amounts or charges owed to Celestica as
provided in this Agreement, provided that Netgear shall have the right to
set-off any such amounts or charges owed to Celestica against any amounts owing
to Netgear by Celestica pursuant to this Agreement. If the aggregate amount
owing by Netgear to Celestica is less than the aggregate amounts owing by
Celestica to Netgear, Celestica shall pay such net amount owing to Netgear
promptly and in full within forty-five days of the date which is the earliest of
expiration or termination, as the case may be.
(b) Celestica shall complete all partially completed Products and deliver such
Products as provided above in accordance with the terms of this Agreement which
would have otherwise applied to such Production Effort or Services, as
applicable. Provided Netgear has made all payments required pursuant to
paragraph (a) above, Celestica shall deliver within three (3) weeks of the later
of the date of expiration or termination or such payment, if required, to
Netgear all finished and partially-finished Products and Materials relating
thereto in exchange for payment by Netgear of the full cost for Products, direct
cost for work-in-process and Material, to the locations designated by Netgear.
(c) The provisions of this Agreement relating to Confidential and Proprietary
Information (Section 10), Intellectual Property Rights (Section 11) except the
license granted to Celestica in Section 11.3, Warranties (Section 12),
Indemnification (Section 13) and Section 14.12, shall remain in effect beyond
any expiration or termination.
(d) Celestica shall return all Netgear Proprietary Information, and under
Netgear's supervision, destroy or erase all copies of such Netgear Proprietary
Information in the possession of Celestica or any of its Affiliates or their
respective employees, consultants, agents or representatives, including copies
on paper or other hard copy and copies on computer or other storage media.
9.4. DUTY TO FULFILL
Notwithstanding any termination or expiration of this Agreement, Celestica
agrees to procure, inspect and fulfill all Orders placed prior to the date of
expiration or termination in accordance with the terms of this Agreement if such
Orders have not previously been cancelled.
10. CONFIDENTIAL AND PROPRIETARY INFORMATION
10.1 PROTECTION OF INFORMATION
During the term of this Agreement, the parties anticipate that each shall
disclose to the other in connection with this Agreement certain of its
Confidential Information. The recipient shall protect the disclosed Confidential
Information by using the same degree of care to prevent the unauthorized use,
dissemination, or publication of the Confidential Information as the recipient
uses to protect its own confidential information of alike nature, but no less
than a reasonable degree of care. Recipient's duty to protect the Confidential
Information disclosed under this Agreement shall expire three years from the
expiration or termination of this Agreement, except that source code shall be
protected hereunder indefinitely. Except as permitted by this Agreement, the
recipient shall disclose no part of such Confidential Information to anyone
except to those of its employees or contractors who have (i) a need to know the
same to accomplish the purposes of this Agreement, (ii) signed an Agreement
under which they shall keep confidential such Confidential Information (iii)
before receiving access to the Confidential Information, acknowledged its
confidential, proprietary and trade secret nature, (iv) agreed to use such
Confidential Information only for the purposes of performing recipient's
obligations under this Agreement. The terms of this Agreement may also be
disclosed to directors, officers, employees, attorneys, accountants,
contractors, banks or actual or potential
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treatment.
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financing sources of recipient, but only if and to the extent such persons need
to know the information for the performance of their duties and are subject to
confidentiality agreements or fiduciary duties of confidentiality to recipient
and agree to use such information only for such duties.
This Agreement imposes no restriction upon the recipient with respect to
disclosure or use of information: (a) that was in the recipient's possession
before receipt from the discloses; (b) that is or becomes (prior to such
disclosure or use) a matter of public knowledge through no fault of the
recipient; (c) that is received by the recipient from a third party without a
duty of confidentiality; (d) that is disclosed by the discloser to a third party
without a duty of confidentiality on the third party; (e) is independently
developed by the recipient; (e) to the extent disclosed in accordance with the
order or requirement of a court, administrative agency, or other governmental
body (provided, however, that the receiver shall provide prompt notice thereof
to enable the discloser to seek a protective order or otherwise prevent such
disclosure); or (f) that is disclosed by the recipient with the discloser's
prior written approval; or (g) as required by the federal securities law and
rules and regulations thereunder:
10.2 PUBLICITY
All press releases and printed material using the name, logo or other
identifying characteristics of a party shall be subject to prior approval of the
other party.
10.3 PROTECTION OF CELESTICA INFORMATION
Each party agrees that the price of components negotiated by it and provided to
the other party shall be deemed to be Confidential Information of that party.
Each party agrees not to discuss the origins of such information with any third
party. Each party agrees not to use such information to solicit a discount from
the disclosing supplier, from any of the supplier's competitors or from any
other supplier for use by the recipient other than for the purposes of
performing its obligations under this Agreement. Each party acknowledges that
unauthorized disclosure of such information may irreparably damage the
discloser's relationship with its suppliers and that any benefit accruing to the
recipient shall belong to Netgear and/or the disclosing party.
10.4 INJUNCTIVE RELIEF
Each party acknowledges that damage from improper disclosure of Confidential
Information is irreparable and that it would be extremely impracticable to
measure the resulting damages. Accordingly, in addition to any other rights and
remedies that a party may have, the injured party is entitled to equitable
review, including preliminary and permanent injunction, and the other party
expressly waives the defense that a remedy in damages will be adequate.
10.5 RETURN OF CONFIDENTIAL INFORMATION
If this Agreement is terminated, and upon request of the discloser, the
recipient shall promptly return all Confidential Information received from the
discloser, together with all copies, or if requested by the discloser, certify
that all such Confidential Information has been destroyed.
11. INTELLECTUAL PROPERTY RIGHTS OF THE PARTIES
11.1 RESERVATION OF PROPRIETARY RIGHTS
Netgear reserves all proprietary rights in the Products and in all associated
original works, documentation, computer programs, discoveries, inventions,
patents, know-how, techniques, designs, engineering details and other data
developed by Netgear or Celestica, either singly or jointly, as a result of work
performed under this Agreement. Celestica agrees to reproduce any appropriate
copyright notice for Netgear on all Products manufactured under this Agreement.
Netgear further reserves all right, title and interest in prototype layouts,
post-layout simulation results, post-layout specifications, test tapes and test
fixtures developed or produced pursuant to this Agreement. The foregoing
reservations shall not, however, apply to proprietary rights, original works,
computer programs,
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a request for confidential
treatment.
New Celestica AgmtV25
discoveries, inventions, patents, know-how, techniques, designs, engineering
details and other data developed solely by Celestica as a result of work
performed under this Agreement that (i) does not relate to (x) the Products or
the Specification, or (y) to Netgear actual or demonstrably anticipated research
or development, (ii) does not result from work performed by Celestica solely for
Netgear, or (iii) relates generally to manufacturing methods and processes. In
each such case, the foregoing shall be the sole property of Celestica.
11.2 LICENSE TO MANUFACTURE
Netgear hereby grants to Celestica a non-exclusive license to use the
Specifications, including all software programs contained therein and all
related proprietary data and know-how necessary to perform the Services pursuant
to this Agreement. This license is non-transferable, may be used only in
connection with the performance of the Services for Netgear under this
Agreement, and shall expire on the date on which Celestica's obligations to
perform the Services terminates under this Agreement.
11.3. TOOLING: OWNERSHIP AND LICENSE
Netgear acknowledges that Celestica shall retain title to the internal tooling
developed by Celestica in connection with this Agreement, and Celestica
acknowledges that Netgear shall have the right to use such tooling in the event
of a material default by Celestica as defined elsewhere in this Agreement only
in order to fulfill Celestica's obligations hereunder prior to such default.
Celestica agrees that each Product created is for Netgear's exclusive use and
further agrees that Celestica has no right to sell or otherwise transfer any
interest in a Product to any party unless Netgear has provided permission in
writing prior to any such sale or transfer.
11.4. CAPITAL ASSETS
In order to perform the Production Effort as stipulated in Article 3, Celestica
may have to use certain capital equipment specified by Netgear. If Celestica can
use the equipment for current or future applications other than for Netgear
assemblies, this equipment shall be the property of Celestica and shall be
funded as such. If the capital equipment cannot be used by other non-Netgear
applications, such equipment shall be solely the properly of Netgear and shall
have Netgear asset tags affixed to the equipment. Such property shall be funded
by Netgear. Maintenance of all equipment shall be per Article 3 above.
Celestica shall maintain inventory of all capital assets, regardless of
ownership, and shall provide inventory records to Netgear on demand. Inventory
records should include, but not be limited to, date of acquisition, description
of asset, serial number, and location.
12. WARRANTIES
12.1. FREE FROM DEFECTS
Celestica warrants that except for refurbished products, the Products shall be
new and unused at the time of delivery to the Netgear Inventory Location.
12.2. TITLE, INFRINGEMENT
Celestica warrants that: (a) it has and shall pass to Netgear good title to the
Products free and clear of all liens and encumbrances; (b) no claim or action is
pending or threatened against Celestica or, to Celestica's knowledge, against
any licensor or supplier of Celestica that would adversely affect the ability of
Celestica to procure and deliver the Products or the right of Netgear or any
Customer of Netgear to use the Products for their intended use, and (c) it has
all rights and powers necessary to perform its obligations under this Agreement.
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treatment.
New Celestica AgmtV25
12.3. SERVICES
Celestica warrants that all Services performed under this Agreement will be
performed in a competent, professional manner and in accordance with the
Statement of Work and the applicable Specifications under this Agreement.
12.4. REMEDIES FOR PRODUCTS UNDER WARRANTY
Not applicable.
12.5. LATENT DEFECTS
Not applicable.
12.6. YEAR ▇▇▇▇ ▇▇▇▇▇▇▇▇
Subject to the provisions of this Section below, Celestica further covenants and
represents that Celestica Systems shall (a) process date and time related data
without causing any processing interruptions, abnormal terminations, or changes
in performance characteristics, and (b) shall process and manipulate all date
and time related functions correctly. Without limiting the generality of the
foregoing, the Celestica Systems shall:
(a) Correctly handle date and time related data before, during and after January
1, 2000, including accepting date and time input, providing date and time
output, and performing ongoing operations on dates and times and portions of
dates and times including calculating, comparing and sequencing of dates and
times (in both forward and backward operations spanning century boundaries);
(b) Correctly handle leap year calculations, including, identification of leap
years, interval calculations (in both forward and backward operations spanning
century boundaries), day-in-year calculations, day-of-the-week calculations, and
week-of-the-year calculations);
(c) Correctly handle all two digit date and time related input in a manner that
resolves ambiguity as to century in a disclosed, defined and predetermined
manner; and
(d) Correctly store, retrieve and provide output of all date and time data in a
manner that is unambiguous as to century.
Celestica shall promptly correct any failure of the Celestica Systems to conform
to the above warranty.
12.7. LIMITATIONS
THIS CLAUSE 12.7 SETS OUT THE SUPPLIER'S SOLE OBLIGATION AND LIABILITY, AND
NETGEAR'S EXCLUSIVE REMEDIES, FOR CLAIMS BASED ON DEFECTS IN OR FAILURE OF ANY
PRODUCT OR SERVICE OR THE SUBJECT MATTER OF ANY SERVICE AND REPLACES ALL OTHER
WARRANTIES AND CONDITIONS, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE PROVIDED ALWAYS THAT THE SUPPLIER DOES NOT EXCLUDE OR LIMIT ITS
LIABILITY FOR DEATH OR PERSONAL INJURY RESULTING FROM ITS NEGLIGENCE NOR
LIABILITY FOR BREACH OF ANY TERM IMPLIED BY STATUTE TO THE EXTENT THAT SUCH
LIABILITIES CANNOT BY LAW BE LIMITED OR EXCLUDED.
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treatment.
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13. INDEMNIFICATION
13.1. INDEMNIFICATION BY NETGEAR
Netgear will, at its expense and at Celestica's request, defend any claim or
action brought against Celestica by a third party (i) to the extent that it is
based on a claim that any Specification provided under this Agreement infringes
or violates any patent, copyright, trademark, trade secret or other proprietary
right of the third party or (ii) to the extent caused by any grossly negligent
act or omission or willful misconduct of Netgear; and Netgear will indemnify and
hold Celestica harmless from and against any costs and liability reasonably
incurred by Celestica that are attributable to that claim, subject to compliance
with the notice provisions below.
Netgear shall have no liability if the alleged infringement is the result of
Celestica's modification or alteration of the Specification; or Netgear's
compliance with Celestica's specifications, designs, or processes; or if
Celestica had actual notice that use of such Specification or its incorporation
into a product would cause such infringement; provided, however, that if
Celestica has such actual notice and promptly informs Netgear of such actual
notice, Celestica shall not be liable for failure to deliver Products hereunder,
but only to the extent that such failure is a result of such actual notice.
13.2. INDEMNIFICATION BY CELESTICA
Celestica will, at its expense and at Netgear's request, defend any claim or
action brought against Netgear by a third party to the extent caused by any
negligent act or omission or willful misconduct of Celestica or its Affiliates;
and Celestica will indemnify and hold Netgear harmless from and against any
costs and liability reasonably incurred by Netgear that are attributable to that
claim, subject to compliance with the notice provisions below.
13.3. PROCEDURE FOR INDEMNIFICATION
If any claim or action shall be brought or asserted against an indemnified party
as provided above (the "Indemnified Party") in respect of which indemnity may be
sought from an indemnifying party under such Sections (the "Indemnifying Party")
the Indemnified Party shall promptly notify the Indemnifying Party who shall
assume the defense thereof and the payment of all expenses; except that any
delay or failure to so notify the Indemnifying Party shall only relieve the
Indemnifying Party of its obligations hereunder to the extent, if at all, that
it is prejudiced by reason of such delay or failure. The Indemnified Party shall
have the right to employ separate counsel in any such claim or action and
participate in the defense thereof, but the fee and expenses of such counsel
shall be at the expense of the Indemnified Party, unless (i) the employment
thereof shall have been specifically directed and required by the Indemnifying
Party or (ii) the Indemnifying Party shall have elected not to assume the
defense and employ counsel. Without the consent of the Indemnified Party, the
Indemnifying Party shall have no right to settle or compromise on any
non-monetary matter.
13.4. LIMITATION OF LIABILITY
TO THE MAXIMUM EXTENT PERMITTED BY LAW, UNDER NO CIRCUMSTANCES AND UNDER NO
LEGAL THEORY, TORT, CONTRACT, OR OTHERWISE, SHALL NETGEAR BE LIABLE TO SUPPLIER
OR ANY OTHER PERSON FOR ANY INDIRECT (INCLUDING BUT NOT LIMITED TO LOST
PROFITS), SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, EVEN IF NETGEAR SHALL
HAVE BEEN INFORMED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY
OTHER PERSON.
TO THE MAXIMUM EXTENT PERMITTED BY LAW, UNDER NO CIRCUMSTANCES AND UNDER NO
LEGAL THEORY, TORT, CONTRACT, OR OTHERWISE, SHALL SUPPLIER BE LIABLE TO NETGEAR
OR
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ANY OTHER PERSON FOR ANY INDIRECT (INCLUDING BUT NOT LIMITED TO LOST PROFITS),
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, EVEN IF SUPPLIER SHALL HAVE BEEN
INFORMED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY OTHER
PERSON.
14. GENERAL PROVISIONS
14.1. ACCESS TO FACILITIES
Netgear shall have the right to review and audit Celestica's facilities,
operations, purchase orders, agreements, and procedures at any reasonable time
with reasonable notice for purposes of determining compliance with the
requirements of this Agreement. From time to time Netgear's Customers will
request the right to review Celestica's facilities and operations for the
purpose of qualification. Celestica agrees to permit such Customer surveys with
five to ten working days notice, provided Celestica does not consider such
Customer of Netgear to be a competitor of Celestica or one of Celestica's
customers.
14.2. FORCE MAJEURE
"Force Majeure" shall include all acts or events beyond the control of a party,
including but not limited to acts of God, government restrictions, continuing
domestic or international problems such as wars or insurrections, strikes,
fires, floods, work stoppages, and embargoes, which prevent totally or partially
the fulfillment of the obligations of either party.
A party affected by an event of Force Majeure shall be released without any
liability on its part from the performance of its obligations (other than an
obligation to pay money) under this Agreement and the applicable Site Agreement,
if any, but only to the extent and only for the period that its performance of
such obligations is prevented by circumstances of Force Majeure and provided
that such party shall have given prompt notice to the other party. Such notice
shall include a description of the nature of the event of Force Majeure, its
cause, and its possible consequences. The party claiming circumstances of Force
Majeure shall promptly notify the other party of the conclusion of the event.
The period of Force Majeure shall be deemed to commence on the date that the
event of Force Majeure first occurs. Regardless of the excuse of Force Majeure,
if either party is not able to perform within ninety (90) days after such event,
the other party may terminate the Agreement. Termination of this Agreement shall
not affect the obligations of either party which exist as of the date of
termination.
During the period that the performance by one of the parties of its obligations
under this Agreement or a Site Agreement has been suspended by an event of Force
Majeure, the other party may likewise suspend the performance of all or part of
its obligations under this Agreement.
14.3. COUNTRY OF ORIGIN
In the event that Netgear requires information concerning component origin due
to government contract requirements or other U.S. reporting requirements,
Netgear will provide Celestica with a written outline of the specific
information requirements, which Products such requirements apply to, and the
reason or legal basis for the requirement. Upon receipt of such information,
Celestica will use commercially reasonable efforts to support Netgear's
requirements.
14.4. NOTICES
All notices shall be sent by certified mail, postage prepaid, by personal
delivery, courier service, or by facsimile or other form of recorded
communication to the parties at their respective addresses set forth below. Any
notices given
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treatment.
New Celestica AgmtV25
shall be deemed to have been received as follows: if sent by facsimile or other
form of recorded communication, when transmitted; if sent by certified mail, on
the date of delivery as shown on the return receipt; and if by courier service,
on the date delivered. Either party may change its notice address by written
notice to the other.
If to Celestica: If to Netgear:
Celestica Asia, Inc.North America Inc. Netgear, Inc.
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇. ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: Director of Operations
Attention: VP of Materials
With a copy to CFO at the same address
14.5. EXPORTS AND CUSTOMS
Each party agrees that it will not knowingly (i) export or re-export, directly
or indirectly, any technical data (as defined by the U.S. Export Administration
Regulations), including software received from the other under this Agreement or
(ii) export or re-export, directly or indirectly, any direct product of such
technical data, including software, to any destination to which such export or
re-export is restricted or prohibited by U.S. or applicable non-U.S. law without
obtaining prior authorization from the U.S. Department of Commerce and/or other
competent government authorities to the extent required by those laws. This
clause shall survive termination or cancellation of this Agreement.
Celestica shall certify quarterly to Netgear the correct country of origin of
each Product determined in accordance with the rules of origin set out in the
applicable laws and treaties. Celestica shall notify Netgear at least sixty (60)
days in advance of any change in the origin of a Product. Celestica shall
maintain supporting documentation sufficient to meet the requirements of any
audit of the origin information by Netgear or by any governmental entity.
Celestica shall obtain from each of its suppliers the appropriate certificate of
origin of Materials and shall provide to Netgear, on the last day of each
calendar quarter, a report identifying which suppliers of Materials have, and
which suppliers have not, certified the country of origin for all Materials
supplied by it to Celestica for manufacture of the Products.
All Products must be marked with their country of origin. The degree of
permanence of the origin marking on the Product shall be sufficient to ensure
that, in any reasonably foreseeable circumstance, the marking shall remain on
the Product throughout its expected life. Both the Product's immediate packaging
and the outermost containers shall also be marked to indicate the country of
origin. Celestica shall be solely responsible for all fines, penalties, costs
and seizures resulting from inadequate marking, packaging of labeling.
Unless otherwise set forth in this Agreement, Celestica shall take all
administrative actions required to produce customs invoices and country of
origin documents for all shipments crossing international borders which comply
with all laws, treaties and regulations of both the exporting country and the
importing country. If a Product includes Materials having different countries of
origin, the different countries of origin must be identified on the customs
invoices, along with the related quantities/serial numbers of such Materials.
Celestica shall be solely responsible for all fines, penalties and costs
resulting from a customs invoice not being so compliant.
Celestica shall perform all administrative actions required to determine the
eligibility of each Product for preferential treatment under the rules of any
applicable trade treaties/agreements and, if eligible, provide the necessary
documentation and obtain such preferential treatment. Celestica shall use it's
best efforts to minimize any penalties and costs resulting from any such
documents subsequently determined to be invalid, shall maintain all
documentation to support the eligibility and shall respond in a timely manner to
verification questionnaires or reviews.
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Commission pursuant to
a request for confidential
treatment.
14.6. AMENDMENT, MODIFICATION OR WAIVER
The provisions of this Agreement may be amended or waived only by an instrument
in writing signed by the authorized representatives of each party, except as
otherwise expressly provided in this Agreement.
14.7. DISASTER RECOVERY PLAN
Celestica agrees to develop and maintain a disaster recovery plan to be put into
effect in the event that it becomes unable to fulfill Orders for any reason for
a period of more than 15 calendar days. The disaster recovery plan shall be
submitted by Celestica to Netgear for review within 15 days of the Effective
Date of this Agreement, and shall be reviewed yearly thereafter. Celestica
agrees that the disaster recovery plan must enable Celestica to continue to
fulfill Orders in accordance with the time schedules required under this
Agreement.
14.8. MANUFACTURING PROCESS INSTRUCTIONS
In the event of a disaster or material default by Celestica under this
Agreement, at no cost and within three business days, Celestica shall make
available to Netgear all process instructions such that Netgear may, at its
discretion, have the Products produced by third parties.
14.9. INDEPENDENT CONTRACTOR
This Agreement shall not constitute Celestica the agent or legal representative
of Netgear for any purpose and Celestica shall not hold itself out as an agent
of Netgear other than as expressly provided in this Agreement. This Agreement
creates no relationship of joint venturers, partners, associates, employment or
principal and agent between the parties, and both parties are acting as
independent contractors. Neither party shall have the right to exercise any
control or direction over the operations, activities, employees or agents of the
other party in connection with this Agreement. Celestica is not granted any
right or authority to, and shall not attempt to, assume or create any obligation
or responsibility for or on behalf of Netgear: Celestica shall not have any
authority to bind Netgear to any contract, whether of employment or otherwise,
and Celestica shall bear all of its own expenses for its operations, including,
without limitation, the compensation of its employees and sales people and the
maintenance of its offices, service, warehouse and transportation facilities.
Celestica shall be solely responsible for its own employees and sales people and
for their omissions, acts and the things done by them. Netgear expressly
disclaims any liability for any commitments on behalf of Netgear made by
Celestica.
14.10. CELESTICA RESPONSIBLE FOR ITS SUBCONTRACTORS
The acknowledgment by Netgear of any subcontractor of Celestica shall in no way
be construed to relieve Celestica of any of its duties, responsibilities and
obligations to Netgear under this Agreement.
14.11. NO ASSIGNMENT
Neither this Agreement nor any right or obligation under it shall be assigned or
delegated by Celestica or by Netgear, voluntarily or by operation of law,
without the prior written consent of the other party, which consent may not be
unreasonably withheld. Any attempted assignment shall be deemed voidable. An
attempted assignment shall be deemed to occur in the event of a sale or transfer
of substantially all of the assets of, or a majority interest in, the voting
shares to, or the merger or consolidation with or into, any other entity .
CONFIDENTIAL INFORMATION
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a request for confidential
treatment.
14.12. APPLICABLE LAW
All issues and questions concerning the construction, validity, enforcement,
interpretation and performance of this Agreement, the rights and obligations
arising hereunder and any purchase made hereunder shall be governed by the laws
of the State of California and the federal laws of the United States applicable
therein, without reference to the UNCITRAL Conventions on Contracts for the
International Sale of Goods and without giving effect to any choice of law or
conflict of law, rules or provisions (whether of California or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than California. The parties hereto submit to and consent to the
nonexclusive jurisdiction of the courts located in the State of California.
14.13. RIGHTS CUMULATIVE
Except as otherwise expressly provided in this Agreement or in any Site
Agreement, all rights and remedies conferred by this Agreement, by any other
instrument, or by law are cumulative and may be exercised singularly or
concurrently.
14.14. SEVERABILITY
If any one or more of the provisions of this Agreement for any reason shall be
held to be invalid, illegal, or unenforceable in any respect by any law or
regulation of any government or by any court, such provision shall not affect
any other provision, and this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had never existed, except in those instances
where removal or elimination of such provision would result in a failure of
consideration under this Agreement.
14.15. ENTIRE AGREEMENT
This Agreement and each Site Agreement, including all Exhibits, constitutes the
entire Agreement between the parties pertaining to the subject matter of this
Agreement. This Agreement supersedes all prior agreements and understandings
between the parties, written or oral, with respect to such subject matter. No
representations or statements of any kind made by any representative of Netgear
which are not stated in this Agreement shall be binding on Netgear. No course of
dealing or course of performance shall be relevant to explain or supplement any
term expressed in this contract.
CONFIDENTIAL INFORMATION
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treatment.
STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
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EXHIBIT 1: STATEMENT OF WORK
The following Statement of Work (SOW) is for the Netgear Operations. Netgear
enters into this contract with Celestica with the understanding that Celestica
will commit the proper mixture of resources and display the attributes of
continuous improvement, initiative, innovation, accountability, responsibility,
and integrity in support of Netgear business goals. All functions described in
this statement of work will be performed at a level of good manufacturing
practices with the goal of being "best in class". All functions performed by
Celestica will be subject to Audit by Celestica's own Quality System and
internal corrective action procedures. There are nine (9) KEY AREAS OF THIS SOW.
Each Key Area contains detailed information about Netgear's requirements. The
Key Areas are:
o Business Management Procedures & Reporting
o Information Systems Integration
o Planning and Purchasing Management
o Inventory Management
o Product Testing and Inspection
o Product Fulfillment and Logistics
o Returns Processing
o Supplier Performance Management
o Supplier Product Quality Program and Management
KEY AREAS IN DETAIL:
BUSINESS MANAGEMENT PROCEDURES & REPORTING - We intend to mutually plan for and
make corporate-wide business decisions. To manage the technical and business
changes, Netgear and Celestica shall:
o Provide dedicated Program Management personnel whose goal is to provide
consistent and efficient responses to program requirements.
o Possess a strong support organization which can be drawn upon in support of
Netgear business needs on a worldwide basis.
o Provide Netgear Functional Organizational Chart.
o Provide Job Descriptions, Roles and Responsibilities for all Netgear
Program personnel.
o Conduct quarterly business reviews for each business management team.
o Create a process to communicate about and resolve issues promptly and to
drive continuous improvement of the day-to-day operations.
o Provide general reporting which supports Netgear's Operations Goals:
- Warranty Return Rate @ < .5% CY98, <.2% CY99
- Product return activity reports
- Returned product test yield reports
- Defects per Million on returned product
- Pareto of Defects on returned product Warranty and non-warranty
receipts activity
- Incoming Inspection Test DOA Units @ < 1% CY1999, < .5 % CY2000
- Incoming Defects per Million by Product
- Incoming Defects per Million by Supplier
- Pareto of Defects by Product by Supplier
- Purchase order receipt reports by supplier by product
- On time receipts by supplier by product
- Product lead-time reports.
- Shipping Errors @ < 1% CY1999, < .5 % CY2000
CONFIDENTIAL INFORMATION
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treatment.
STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
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- Value of shipments at standard cost reports.
- Shipment activity reports.
- On Time Shipment @ 98% (Actual Ship Date Vs Scheduled Ship Date).
- Order Fulfillment Lead-time @ 95% 5 Days ARO (After Receipt of Order).
- Inventory Variance @ $500 per $Million.
- Inventory Turns @ 12.
- Separate Turns calculations for IC inventory and Product
inventories.
- On hand Inventory by item by location.
- Inventory aging reports by item to track slow moving and excess
inventory.
BUSINESS MANAGEMENT PROCEDURES & REPORTING (CONTINUED)
o Provide additional reporting required determining root cause for management
action in support of Operations Goals. This additional reporting may
include activity levels, cost per activity, productivity, cycletime,
process quality, accuracy, or any other measurement determined to be a key
measurement by Netgear management.
o Reports will require information sorted by customer, supplier, product,
inventory location, or activity, as applicable.
o Produce reports which enable Supplier to benchmark performance to Good
Manufacturing Practice (GMP), Best -in-Class, and World-Class Manufacturing
(WCM).
o Prepare and participate in Quarterly performance review.
o Produce both hard and soft (electronic) files of reports.
INFORMATION SYSTEMS INTEGRATION - Netgear will provide the database platform for
the control of Sales and Inventory. This database will be installed at Netgear,
with access provided to the supplier at the supplier's location(s). The supplier
will be required to:
o Maintain the data integrity of all transactions associated with the
receipt, storage, transfer, issue, and shipment of materials and products.
o The supplier will work with Netgear to ensure proper separation of duties,
password access over system functionality, etc. in order to comply with
proper internal controls and financial audit requirements.
o The supplier will provide on-going systems support for the Netgear database
as required.
CONFIDENTIAL INFORMATION
Page 2
22
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------
PLANNING AND PURCHASING, MANAGEMENT - Planning and Purchasing Management is
defined as the management of all controlled activities associated with the
requirements planning and purchase of Netgear material and product. Requirements
are:
o Maintain inventory levels per Netgear forecasts by use of material
requirements planning (MRP) and order action (purchase orders) while
achieving 12 inventory turns.
o Issue Purchase Orders to Netgear suppliers within 5 business days of
receipt of Build Plan.
o Product or item due dates on purchase orders issued will reflect the actual
requested and confirmed delivery date for the product or item ordered on
the purchase order.
o Provide purchase order history reports detailing purchase order number,
purchase order date, product, supplier name, due date, quantity ordered,
unit price, and extended value.
o Provide hard copy of all purchase orders issued to Netgear suppliers to
Netgear within 10 business days of issue to Netgear suppliers. If at any
time a change order is issued to an existing purchase order, a hard copy of
the changed purchase order will be provided to Netgear within 10 business
days of issue to Netgear suppliers.
o Provide open purchase order reports to Netgear on a weekly basis. The
content of the open purchase order report will contain the purchase order
number, purchase order date, product, supplier name, due date, quantity
ordered, unit price, and extended value.
o Provide purchase order receipts report to Netgear on a weekly basis. The
content of the purchase order receipts report will contain the product
ordered, supplier name, purchase order number, issue date of purchase
order, due date, date received, receipt quantity, unit price, and extended
value of quantity received.
o Engage in daily communications with suppliers if necessary to manage on
time delivery of products or items ordered. Expedite or reschedule orders
as required to satisfy fluctuations in demand for Netgear products and to
achieve inventory plans.
o Measure on time delivery performance of suppliers.
o Measure actual lead-time performance of suppliers.
o On a daily basis, provide accurate reporting of product availability
against product demand (available-to-promise report) to include the
following information:
- Total quantity on hand by product by location.
- Total quantity of booked orders by product by location.
- Total quantity of products "drop-shipped" (in-transit to a location but not
received against an open purchase order) by product by destination
location.
- Total quantity of products in inventory but in-transit between locations
(received off purchase orders into inventory and shipped from one location
to another) by product by destination location.
- Net product available versus total demand (total on hand versus total
ordered) by product by location.
- A "remarks" section for each product or item where information concerning
delivery schedules and any relevant actions being taken to satisfy product
demand are noted.
o Report on a daily basis the status of all inbound materials in-transit to
inventory locations. Report will detail product, quantity shipped, supplier
invoice number, forwarding information, and estimated arrival date at
destination.
o Schedule production of bundled products or conversion of products from one
version to another version on a daily basis to satisfy product demand.
o Provide activity reports on a monthly basis to Netgear for use in monthly
forecast creation and master product planning purposes.
CONFIDENTIAL INFORMATION
Page 3
23
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------
INVENTORY MANAGEMENT - Inventory Management is defined as the management of all
controlled activities associated with the receipt, storage, security, transfer,
accuracy, and shipment of Netgear material and product. The requirements for
Inventory Management apply to materials and products controlled by Celestica in
Celestica's SAP Inventory System and Netgear's SunSystem Inventory System.
Requirements are:
o First - In, First - Out (FIFO) process control.
o Lot tracking process for material purge / stop shipment requirements.
o Bar-Code / Auto - Identification processes.
o Bin storage and ESD (Electro-Static Discharge) protection for handling and
storage of LC.'s.
o Assume financial responsibility for loss of product or materials owned by
Netgear in Netgear's SunSystems inventory locations due to shrinkage,
pilferage, transaction error, physical inventory adjustment, or any damage
to Netgear product caused by Celestica personnel.
o Perform all inventory transactions in both Celestica's SAP and Netgear's
SunSystems databases.
o Develop procedures to control and ensure that inventory transactions on
Celestica's SAP and Netgear's SunSystem are performed in the proper
sequence for inventory reconciliation between the two systems.
o Establish procedures to ensure inventory transactions performed by
Celestica personnel in both Celestica's SAP and Netgear's SunSystems
reflect actual material or product movements. Ensure source documents are
used to perform inventory transactions. Examples of such source
documentation are inventory transfer documents, inventory issue documents,
inventory receipt documents, material travelers, inventory receipt
documents, inventory shipment documents, delivery receipts, cargo receipts,
bills of lading, etc., in support of inventory transactions performed on
either SAP or SunSystems databases. Maintain records of all source
documents used for inventory transactions in a manner that facilitates
internal or external audit requirements.
o Provide support from qualified personnel to audit compliance to financial
period end for proper revenue recognition.
o Maintain inventory accuracy through management of cycle-count program,
including ABC count criteria and count frequency.
o Perform Physical Inventories as directed for both SAP and SunSystems.
Provide proper oversight and audit of physical inventories to comply with
reporting requirements from internal or external auditors.
o Inventory accuracy to be maintained at $500 per $Million.
o Perform incoming quality control (IQC) on all products.
o Establish and maintain controlled inventory locations to segregate
materials and products by condition, type, status, or other attributes as
agreed. Examples are:
- By condition: Maintain separate inventory locations for goods returned from
customers, whether returned as unsold products (stock rotations) or
defective product (warranty returns) until product is dispositioned.
- By Type: Raw materials such as integrated circuits, power supplies,
packaging material, etc. should be maintained in separate inventory
locations from completed products (finished goods).
- By status: Establish and maintain separate inventory locations for
materials and products undergoing incoming inspection.
o On a weekly basis, provide to Netgear inventory reports detailing quantity
on hand by product, unit cost, extended value, by location. Reports may
also detail inventory aging to identify slow moving or excess inventory for
disposition.
o On a monthly basis, provide inventory reports to Netgear to support monthly
forecast creation, master product planning, and standard cost setting
processes.
CONFIDENTIAL INFORMATION
Page 4
24
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------
PRODUCT TESTING AND INSPECTION - Celestica shall manage the testing and
inspection of all products received from Netgear suppliers. Product testing will
be performed in conformance to Netgear specification. Product inspection will be
performed to standards and practices as contained in Celestica's quality control
procedures. Requirements are:
o Perform required tests on all products received in conformance to Netgear
approved process and specification.
o Perform preventative maintenance on all test equipment as required.
o Ensure test equipment calibration between Celestica equipment and supplier
equipment per specification.
o Ensure correct revisions of all test programs are used in the test process
for all products.
o Manage the formal release process through Celestica document control
procedures for the release or change to test equipment and test programs.
o Initiate required actions with suppliers when test equipment or test
results indicate nonconformance to specification.
o Maintain adequate authenticated documents on preventative maintenance and
calibration of all test equipment.
o Celestica shall not place into service and test equipment or program until
written approval of the test equipment or program has been received from
Netgear.
o Maintain and submit to Netgear on a monthly basis the list of all test
equipment, detailing Netgear owned or Celestica owned, with adequate
description of equipment.
o For all Netgear owned equipment, Celestica will ensure such equipment is
properly identified per Netgear fixed asset requirements.
o Celestica shall maintain adequate authenticated inspection procedures
covering but not limited to the following processes:
- Documented inspection procedures
- Sampling plans
- Use of defect codes
- Workmanship standards
- Cosmetic standards
- International standards
- First article approvals
- Ship-to-Stock program
- Training and certification of inspection personnel
o Provide product functional test and inspection yields and pareto of defects
report to Netgear on a monthly basis.
o Maintain adequate authenticated inspection and test documents.
CONFIDENTIAL INFORMATION
Page 5
25
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------
PRODUCT FULFILLMENT AND LOGISTICS - Fulfillment is defined as the process of
assembling, picking, packaging, inspecting, and shipping Netgear products to
Netgear customers. Logistics is defined as the management of inbound and
outbound transportation, customs, material classifications in compliance with
international import and export regulations, and compliance to export controls.
Requirements are:
o Ship the same day on Netgear customer orders received by Noon.
o Order consolidation process (multiple orders, same destination)
o Provide partial shipments of orders, as needed.
o Pick, pack, and ship orders to Netgear customers in less than case pack
quantities if required.
o Ensure all shipments are audited for accuracy prior to delivery to
transportation providers. Shipment audits must be performed by authorized
Quality Control personnel.
o Follow customer routing for all outbound customer shipments. Ship using
customer's shipping account numbers.
o Manage carrier dispatching, airline flight or ocean booking activity.
o Handle international customs documentation, including the preparation of
Shipper's Letter of Instructions, Cargo Receipts, Bills of Lading,
Commercial Invoices, Certificates of Origin, etc. as required by the
customs agencies of the origin and destination countries.
o Handle all documentation as required for shipments tendered on Letter of
Credit, Sight Draft, etc.
o In support of resolution of delivery disputes between Netgear and Netgear
customers, investigate disputed claims and provide proof of delivery
documentation or other information to Netgear as required to resolve such
disputes.
o Provide documentation to Netgear in support of all shipments on a daily
basis. Maintain shipment activity logs and all source documentation
required by internal or external auditors in compliance with proper revenue
recognition requirements.
o Prepare and submit to Netgear Shipment accuracy reports on a monthly basis.
o Prepare and submit to Netgear On Time Shipment reports on a monthly basis.
o Prepare and submit to Netgear Order Fulfillment Lead-time reports on a
monthly basis.
o Traffic and Customs expertise for cost control, import and export
compliance (record retention, ECCN, H.T.S.U.S. classification, etc.)
o Manage mode selection (Airfreight or Seafreight) and enforce Netgear
routing instructions.
o Demonstrate proper control of all negotiable documents required for inbound
customs clearance.
o Negotiate freight costs with transportation providers as required.
o Perform Landed Cost Analysis for use in determining accurate product unit
price adjustments in support of changes in terms of sale with Suppliers.
CONFIDENTIAL INFORMATION
Page 6
26
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------
RETURNS PROCESSING - Returns processing is defined as the management of the
receipt, verification, inspection, testing, disposition, re-packaging, and
reporting of product returns from Netgear customers. Netgear issues two basic
types of authorizations to it's customers: Warranty return authorizations for
defective products and Stock Rotation returns for unsold slow moving products
from customer inventory. Celestica will maintain proper separation of warranty
and stock rotation products throughout the following functions:
o Physically receive shipments of returned products from Netgear customers.
o Verify returned products are received in good physical condition, noting
any and all shipping damage on commercial documents (cargo receipts, bills
of lading, delivery receipts, etc.) prior to signing delivery documents.
o Upon acceptance, verify valid return material authorization (RMA) exists
for returned products.
o Report any unauthorized returns to Netgear on date of receipt.
o Verify returned goods received match product and quantity authorized on
Netgear return material authorization.
o Verify
o Report any discrepancy between product and quantity received and product
and quantity authorized on date of receipt.
o Complete Netgear Returned Material Receipt Report (RMRR) and fax to Netgear
on date of receipt.
o Prepare and submit to Netgear a daily return material receipts report,
detailing the customer name, RMA number, product and quantity, and value on
the date of receipt. If no receipt activity occurs on any given day, the
return receipts report will still be sent, noting "No Receipts".
o In support of resolution of delivery disputes on returned products between
Netgear and Netgear customers, investigate disputed claims and provide
proof of delivery documentation or other information to Netgear as required
to resolve such disputes.
o Perform incoming inspection on all returned products per agreed processes.
o Perform functional test on all warranty defective product returns.
o Provide returned product functional test and inspection yields and pareto
of defects report to Netgear on a monthly basis.
o Maintain separate inventory locations for product receipt, work in process
test, inspection or test failure products, inspection or test accepted
products, and refurbished products per agreed process.
o Establish procedures to ensure inventory transactions performed within or
between established returned product inventory locations by Celestica
personnel in Netgear's SunSystems reflect actual material or product
movements. Ensure source documents are used to perform inventory
transactions. Examples of such source documentation are inventory transfer
documents, inventory issue documents, inventory receipt documents, material
travelers, inventory receipt documents, inventory shipment documents,
delivery receipts, cargo receipts, bills of lading, etc., in support of
inventory transactions performed on Netgear's SunSystems database. Maintain
records of all source documents used for inventory transactions in a manner
that facilitates internal or external audit requirements.
o Arrange for timely disposition and return to original manufacturer all
inspection or test failure products which are still under manufacturer's
warranty.
o Refurbish products per agreed process as directed by Netgear.
CONFIDENTIAL INFORMATION
Page 7
27
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------
SUPPLIER PERFORMANCE MANAGEMENT-- Celestica will provide dedicated management
personnel to Netgear in support of the Supplier Performance Management
requirements below.
LOGISTICS
o Ensure Suppliers provide Advice of Shipment notifications on date of
shipment to Celestica and Netgear personnel for all supplier shipments of
product and materials.
o Measure and report monthly on number of shipments advised Vs. number of
shipments.
o Ensure Suppliers provide forwarding information and adequately authentic
documentation that will meet import/export customs requirements, ensure
smooth customs clearances, and assure proper accounts payable aging.
o Measure and report monthly on number of conforming shipments Vs. number of
shipments.
o Resolve any issues with Suppliers that delay or could potentially delay the
receipt of Netgear products into Celestica's Distribution Centers.
o Monitor and report on each Supplier's ability to manage shipment scheduling
to meet expected levels of service and transit times. Initiate corrective
actions as required with suppliers to ensure predictable levels of service
for all transportation modes.
o Ensure Suppliers conform to good practice in consolidating shipments to
minimize cost.
DELIVERY
o Engage in daily communications with suppliers if necessary to manage on
time delivery of products or items ordered. Expedite or reschedule orders
as required to satisfy fluctuations in demand for Netgear products and to
achieve inventory plans.
o Measure and report monthly the on time delivery performance of suppliers.
o Measure and report monthly the actual lead-time performance of suppliers.
o Measure and report monthly the accuracy of Suppliers commitments (Actual
Vs. Advised)
o Report monthly purchase order receipts by supplier by product.
QUALITY
o Measure and report monthly Incoming Defects per Million by Product
o Measure and report monthly Incoming Defects per Million by Supplier
o Measure and report monthly Pareto of Defects by Product by Supplier
o Measure and report monthly Supplier Corrective Actions issued.
o Measure and report monthly Supplier Corrective Action Aging Report
o Measure and report monthly Supplier Ship-to-Stock Status by product.
o Measure and report monthly Cost of Quality by Supplier.
CONFIDENTIAL INFORMATION
Page 8
28
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------
SUPPLIER PRODUCT QUALITY PROGRAM AND MANAGEMENT - Celestica agrees to adopt the
product quality assurance requirements, perform quality control tests, and
provide the quality control functions described below. Celestica will provide
dedicated Quality management personnel to Netgear in support of the quality
assurance program requirements. When deemed appropriate and by mutual consent,
additional resources can be drawn upon from Celestica's Corporate Quality
Organization in support of Netgear business needs on a worldwide basis.
Celestica's Product Quality Management Program will use adequately authenticated
methods to mange Product Quality Assurance, Document Control, and Supplier
Quality Engineering efforts. Celestica's Product Quality Management Program will
encompass, but not be limited to, the attributes of the Product Quality Program
Requirements as follows.
PRODUCT QUALITY ASSURANCE
O QUALITY PLANNING
- Internal Procedure
- Workmanship Standards
- Customer Requirements
- International Standards
- First Article Approval
- Process Release
- New Product Introduction / Process Verification Test Approval
- Quality Stamp/Lot Label Control
- Quality Training Program
o CUSTOMER QUALITY IMPROVEMENT
- Customer Interface
- Closed Loop Corrective Action (CLCA) Feedback: Problem Discovery / Root
Cause Investigation / Determine Corrective Action / Implement Corrective
Action / Verify Effectiveness of Corrective Action / Closure Requirements /
Management Reporting
- Material Review Board
- Statistical Process Control
- Cost of Quality Metrics and Reporting
- Material Traceability
o AUDIT AND DATA ANALYSIS
- ISO System Audit
- Process Audit
- Product Audit
- Material Audit
- ESD Audit
- Data Analysis and Reporting
DOCUMENT CONTROL
o Document Center
o Document Transfer procedures
o Specification Library
o ECO Management
o Quality Manual
CONFIDENTIAL INFORMATION
Page 9
29
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------
SUPPLIER QUALITY ENGINEERING
o Supplier Engineering - Supplier Survey
- Supplier Qualification / Disqualification
- Supplier Audits
- New Product Readiness
- Component Approval
- Approved Vendor List (AVL) Management
- AVL Change Approval
- Supplier Rating
- Supplier Performance Management and Reporting
- Supplier Closed Loop Corrective Action Process
- Suppler Certification Process and Criteria
o INCOMING QUALITY CONTROL
- Inspection Procedures
- Qualified Personnel
- First Article Approval
- Tooling Approval: Conditional, first shots, texturing.
- Functional Test Process
- Test Equipment and Test Programs Qualification, Calibration, Preventative
Maintenance
- Equipment Lock-Out Controls
- Mechanical, Cosmetic, and Workmanship Standards
- Source Inspections
- Statistical AQL Sampling Plans
- Use of Defect Codes
- Ship-to-Stock Qualification, Measurement, and Reporting
o SUPPLIER PERFORMANCE REPORTING
- Incoming Defects per Million (DPM) by product, by supplier
- Pareto of Defects
- On Time Delivery
- Supplier Corrective Action Status Report: Quantity of Corrective Actions
issued, status of open actions, age of corrective actions, duration until
closure.
- Cost of Quality by Supplier.
- Warranty return rate by supplier, by product.
- Returned product Defects per Million by Supplier, by product.
- Returned product Dead On Arrival (DOA) rate, by supplier, by product.
- Returned product pareto of defects by supplier, by product.
CONFIDENTIAL INFORMATION
Page 10
30
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 2: LIST OF PRODUCTS
PRODUCT PRODUCT DESCRIPTION
------- -------------------
DB104AU DUAL SPEED STARTER KIT
DB104CC DUAL SPEED STARTER KIT
DB104FR DUAL SPEED STARTER KIT
DBI04GE DUAL SPEED STARTER KIT
DBI04GR DUAL SPEED STARTER KIT
DBI04JP DUAL SPEED STARTER KIT
DBI04NA DUAL SPEED STARTER KIT
DB104UK DUAL SPEED STARTER KIT
DS104AU 4 PORT DUAL SPEED 10/100 HUB
DS104FR 4 PORT DUAL SPEED 10/100 HUB
DS104GE 4 PORT DUAL SPEED 10/100 HUB
DS104GR 4 PORT DUAL SPEED 10/100 HUB
DS104JP 4 PORT DUAL SPEED 10/100 HUB
DS104NA 4 PORT DUAL SPEED 10/100 HUB
DS104UK 4 PORT DUAL SPEED 10/100 HUB
DS106AU 6 PORT SLIM DUAL SPEED HUB
DS106FR 6 PORT SLIM DUAL SPEED HUB
DS106GE 6 PORT SLIM DUAL SPEED HUB
DS106GR 6 PORT SLIM DUAL SPEED HUB
DS106JP 6 PORT SLIM DUAL SPEED HUB
DS106NA 6 PORT SLIM DUAL SPEED HUB
DS106UK 6 PORT SLIM DUAL SPEED HUB
DS108AU 8 PT SLIM 10/100 HUB AU MOQ 12
DS108FR 8PT SLIM 10/100 HUB EU MOQ 12
DS108GE 8PT SLIM 10/100 HUB EU MOQ 12
DS108GR 8PT SLIM 10/100 HUB EU MOQ 12
DS108JP 8PT SLIM 10/100 HUB JP MOQ 12
DS108NA 8PT SLIM 10/100 HUB NA MOQ 12
DS108UK 8 PT SLIM 10/100 HUB UK MOQ 12
DS116AU 16 PORT SLIM DUAL SPEED HUB
DS116FR 16 PORT SLIM DUAL SPEED HUB
DS116GE 16 PORT SLIM DUAL SPEED HUB
DS116GR 16 PORT SLIM DUAL SPEED HUB
DS116JP 16 PORT SLIM DUAL SPEED HUB
DS116NA 16 PORT SLIM DUAL SPEED HUB
DS116UK 16 PORT SLIM DUAL SPEED HUB
DS309AU 9PT DUAL SPEED HUB W/UPLINK
DS309FR 9PT DUAL SPEED HUB W/UPLINK
DS309GE 9PT DUAL SPEED HUB W/UPLINK
DS309GR 9PT DUAL SPEED HUB W/UPLINK
DS309JP 9PT DUAL SPEED HUB W/UPLINK
DS309NA 9PT DUAL SPEED HUB W/UPLINK
DS309UK 9PT DUAL SPEED HUB W/UPLINK
DS508AU 8 PT D-SPD STACK HUB MOQ 6
DS508GE 8PT D-SPD STACK HUB MOQ 6
DS508JP 8PT D-SPD STACK HUB MOQ 6
DS508NA 8PT D-SPD STACK HUB MOQ 6
DS508UK 8 PT D-SPD STACK HUB MOQ 6
DS516AU 16 PT D-SPD STACK HUB MOQ 6
DS516GE 16 PT D-SPD STACK HUB MOQ 6
DS516JP 16 PT D-SPD STACK HUB MOQ 6
DS516NA 16 PT D-SPD STACK HUB MOQ 6
DS516UK 16 PT D-SPD STACK HUB MOQ 6
DS524AU 24 PT D-SPD STACK HUB MOQ 6
DS524GE 24 PT D-SPD STACK HUB MOQ 6
DS524JP 24 PT D-SPD STACK HUB MOQ 6
DS524NA 24 PT D-SPD STACK HUB MOQ 6
DS524UK 24 PT D-SPD STACK HUB MOQ 6
EA101C USB ETHERNET ADAPTER
EA20110 10-PK 10MBPS ISA CARD MOQ 1
EA20150 50-PACK 10MBPS ISA CARD
EA201C 10 MBPS ISA CARD MOQ 40
EA201CFR 10 MBPS ISA CARD MOQ 40
EA201CGR 10 MBPS ISA CARD MOQ 40
EB104AU NETWORK STARTER KIT ISA
EB104FR NETWORK STARTER KIT ISA
EB104GE NETWORK STARTER KIT ISA
Page 1 of 5
31
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 2: LIST OF PRODUCTS
PRODUCT PRODUCT DESCRIPTION
------- -------------------
EB104NA NETWORK STARTER KIT ISA
EB104UK NETWORK STARTER KIT ISA
EN104AU 4 PT 10BASE-T HUB AU MOQ 10
EN104GE 4 PT 10BASE-T HUB EU MOQ 10
EN104JP 4 PT 10BASE-T HUB JP MOQ 10
EN104NA 4 ▇▇ ▇▇▇▇▇▇-▇ ▇▇▇ ▇▇ ▇▇▇ ▇▇
▇▇▇▇▇▇▇▇▇ 4 PT 10BASE-T HUB AU MOQ 10
EN104TPGE 4 PT 10BASE-T HUB EU MOQ 10
EN104TPGR 4 PT 10BASE-T HUB GERMAN
EN104TPJP 4 PT 10BASE-T HUB JP MOQ 10
EN104TPNA 4 ▇▇ ▇▇▇▇▇▇-▇ ▇▇▇ ▇▇ ▇▇▇ ▇▇
▇▇▇▇▇▇▇▇▇ 4 PT 108ASE-T HUB UK MOQ 10
EN104UK 4 PT 10BASE-T HUB UK MOQ 10
EN106TPAU 6 PT 10BASE-T HUB AU MOQ 12
EN106TPGE 6 PT 10BASE-T HUB EU MOQ 12
EN106TPJP 6 PT 10BASE-T HUB JP MOQ 12
EN106TPNA 6 ▇▇ ▇▇▇▇▇▇-▇ ▇▇▇ ▇▇ ▇▇▇ ▇▇
▇▇▇▇▇▇▇▇▇ 6 PT 108ASE-T HUB UK MOQ 12
EN108AU 8PT 10B-T HUB AUI BNC MOQ 10
EN108GE 8PT 10B-T HUB AUI BNC MOQ 10
EN108JP 8PT 10B-T HUB AUI BNC MOQ 10
EN108NA 8PT 10B-T HUB NA MOQ 10
EN108TPAU 8 PT 10BASE-T HUB AU MOQ 10
EN108TPGE 8 PT 10BASE-T HUB EU MOQ 10
EN108TPJP 8 PT 10BASE-T HUB JP MOQ 10
EN108TPNA 8 ▇▇ ▇▇▇▇▇▇-▇ ▇▇▇ ▇▇ ▇▇▇ ▇▇
▇▇▇▇▇▇▇▇▇ 8 PT 10BASE-T HUB UK MOQ 10
EN108UK 8 PT 10BASE-T HUB UK MOQ 10
EN116AU 16PT 10BASE-T HUB AU MOQ 10
EN116GE 16PT 10BASE-T HUB EU MOQ 10
EN116JP 16 PT 10BASE-T HUB JP MOQ 10
EN116NA 16PT 10BASE-T HUB NA MOQ 10
EN116UK 16 PT 10BASE-T HUB UK MOQ 10
EN308AU 8PT 10BASE-T HUB AUS MOQ 10
EN308GE 8 PT 10BASE-T HUB EU MOQ 10
EN308JP 8 PT 10BASE-T HUB JP MOQ 10
EN308NA 8PT 10BASE-T HUB NA MOQ 10
EN308TCAU 8PT 10BASE-T HUB
▇▇▇▇▇▇▇▇▇ ▇▇▇ 10BASE-T HUB
EN308TCGE 8PT 10BASE-T HUB
▇▇▇▇▇▇▇▇▇ ▇▇▇ 10BASE-T HUB
▇▇▇▇▇▇▇▇▇ ▇▇▇ 10BASE-T HUB
▇▇▇▇▇▇▇▇▇ ▇▇▇ 10BASE-T HUB
▇▇▇▇▇▇▇▇▇ ▇▇▇ 10BASE-T HUB
EN308UK 8 PT 10BASE-T HUB UK MOQ 10
EN516AU 16 PT 10BASE-T HUB AU MOQ 5
EN516GE 16 PT 10BASE-T HUB EU MOQ 5
EN516JP 16 PT 10BASE-T HUB JP MOQ 5
EN516NA 16 PT 10BASE-T HUB NA MOQ 5
EN516UK 16 PT 10BASE-T HUB UK MOQ 5
EN524AU 24 PT 10BASE-T HUB AU MOQ 6
EN524GE 24PT 10BASE-T HUB EU MOQ 6
EN524JP 24 PT 10BASE-T HUB JP MOQ 6
EN524NA 24 PT 10BASE-T HUB NA MOQ 6
EN524UK 24 PT 10BASE-T HUB UK MOQ 6
FA31010 10-PK 10/100 PCI ADPTR MOQ 1
FA31050 50-PK 10/100 PCI ADPTR MOQ 1
FA310CFR 10/100 PCI ADPTR&CBL-FRENCH
FA310CGR 10/100 PCI ADPTR&CBL-GERMAN
FA310JP 10/100 PCI ADAPTER MOQ 40
FA310TX 10/100 PCI ADAPTER MOQ 40
FA310TXC 10/100 PCI ADPTR&CBL MOQ 40
FA310TXGR 10/100 PCI ADAPTER GERMAN
FA410C 10/100 PCMCIA CARD MOQ 40
FA410CFR 10/100 PCMCIA CARD MOQ 40
FA410CJP 10/100 PCMCIA CARD MOQ 40
FA510C 10/100 CARDBUS ADAPTER
Page 2 of 5
32
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 2: LIST OF PRODUCTS
PRODUCT PRODUCT DESCRIPTION
------- -------------------
FB104AU ▇ ▇▇▇▇ ▇▇-▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇ ▇▇
▇▇▇▇▇▇▇ 4 PT FE STARTER KIT FRENCH
FB104GE 4 PORT FE-NET STARTER KIT GE
FB104NA 4 PORT FE-NET STARTER KIT NA
FB104NA-6 SIX PACK FE-NET STARTER KIT
FB104UK 4 PORT FE-NET STARTER KIT UK
FB108AU 8 PORT FE-NET STARTER KIT AU
FB108GE 8 PORT FE-NET STARTER KIT GE
FB108NA 8 PORT FE-NET STARTER KIT NA
FB108UK 8 PORT FE-NET STARTER KIT UK
FE104AU 4 PT FAST E-NET HUB AU MOQ 8
FE104GE 4 PT FAST E-NET HUB EU MOQ 8
FE104JP 4 PT FAST E-NET HUB JP MOQ 8
FE104NA 4 PT FAST E-NET HUB NA MOQ 8
FE104UK 4 PT FAST E-NET HUB UK MOQ 8
FE108AU 8 PT FAST E-NET HUB AU MOQ 8
FE108GE 8 PT FAST E-NET HUB EU MOQ 8
FE108JP 8 PT FAST E-NET HUB JP MOQ 8
FE108NA 8 PT FAST E-NET HUB NA MOQ 8
FE108UK 8 PT FAST E-NET HUB UK MOQ 8
FE116AU 16 PT 100BASE-TX FE HUB
FE116GE 16 PT 100BASE-TX FE HUB
FE116JP 16 PT 100BASE-TX ▇▇ ▇▇▇
▇▇▇▇▇▇▇ ▇▇ ▇▇ ▇▇▇▇▇▇▇-▇▇ ▇▇ ▇▇▇
▇▇▇▇▇▇▇ 16 PT 100BASE-TX FE HUB
FE508AU 8PT FE STACK HUB AU MOQ 5
FE508DIS DISPLAY MODEL FE508
FE508GE 8PT FE STACK HUB EU MOQ 5
FE508JP 8PT FE STACK HUB JP MOQ 5
FE508NA 8PT FE STACK HUB NA MOQ 5
FE508UK 8PT FE STACK HUB UK MOQ 5
FE516AU 16PT FE STACK HUB AU MOQ 5
FE516DIS DISPLAY MODEL FE516
FE516GE 16PT FE STACK HUB EU MOQ 5
FE516JP 16PT FE STACK HUB JP MOQ 5
FE516NA 16PT FE STACK HUB NA MOQ 5
FE516UK 16PT FE STACK HUB UK MOQ 5
FS102AU 2 PT FAST E-NET SW AU MOQ 10
FS102GE 2 PT FAST E-NET SW EU MOQ 10
FS102JP 2 PT FAST E-NET SW JP MOQ 10
FS102NA 2 PT FAST E-NET SW NA MOQ 10
FS102UK 2 PT FAST E-NET SW UK MOQ 10
FS104AU 4 PT FAST E-NET SW AU MOQ 10
FS104GE 4 PT FAST E-NET SW EU MOQ 10
FS104JP 4 PT FAST E-NET SW JP MOQ 10
FS104NA 4 PT FAST E-NET SW NA MOQ 10
FS104UK 4 PT FAST E-NET SW UK MOQ 10
FS105AU 5 PT FAST E-NET SWITCH AU
FS105GE 5 PT FAST E-NET SWITCH GE
FS105JP 5 PT FAST E-NET SWITCH JP
FS105NA 5 PT FAST E-NET SWITCH NA
FS105UK 5 PT FAST E-NET SWITCH UK
FS108AU 8 PORT 10/100 SWITCH,EXT PWR
FS108GE 8 PORT 10/100 SWITCH,EXT PWR
FS108JP 8 PORT 10/100 SWITCH,EXT ▇▇▇
▇▇▇▇▇▇▇ ▇ ▇▇▇▇ ▇▇/▇▇▇ ▇▇▇▇▇▇,▇▇▇ PWR
FS108UK 8 PORT 10/100 SWITCH,EXT PWR
FS308AU 8 PORT 10/100 SWITCH,INT PWR
FS308GE 8 PORT 10/100 SWITCH,INT PWR
FS308JP 8 PORT 10/100 SWITCH,INT ▇▇▇
▇▇▇▇▇▇▇ ▇ ▇▇▇▇ ▇▇/▇▇▇ ▇▇▇▇▇▇,▇▇▇ PWR
FS308UK 8 PORT 10/100 SWITCH,INT PWR
▇▇▇▇▇▇▇ ▇ ▇▇ ▇▇▇▇ ▇-▇▇▇ ▇▇▇ ▇▇ MOQ 5
FS508GE 8 PT FAST E-NET SW EU MOQ 5
FS508JP 8 PT FAST E-NET SW JP MOQ 5
FS508NA 8 PT FAST E-NET SW NA MOQ 5
FS508UK 8 PT FAST E-NET SW UK MOQ 5
Page 3 of 5
33
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 2: LIST OF PRODUCTS
PRODUCT PRODUCT DESCRIPTION
------- -------------------
FS509AU 9 PORT SWITCH W/GBIT UPLINK
FS509GE 9 PORT SWITCH W/GBIT UPLINK
FS509JP 9 PORT SWITCH W/GBIT UPLINK
FS509NA 9 PORT SWITCH W/GBIT UPLINK
FS509UK 9 PORT SWITCH W/GBIT UPLINK
▇▇▇▇▇▇▇ ▇▇ ▇▇ ▇▇▇▇ ▇-▇▇▇ ▇▇ ▇▇ MOQ 6
FS516GE 16 PT FAST E-NET SW EU MOQ 6
FS516JP 16 PT FAST E-NET SW JP MOQ 6
FS516NA 16 PT FAST E-NET SW NA MOQ 6
FS516UK 16 PT FAST ENET SW UK MOQ 6
FS518AU 18PT FAST E-NET SW NA MOQ 5
FS518GE 18PT FAST E-NET SW NA MOQ 5
FS518JP 18PT FAST E-NET SW NA MOQ 5
FS518NA 18PT FAST E-NET SW NA MOQ 5
FS518UK 18PT FAST E-NET SW NA MOQ 5
FS524AU 24 PT FAST E-NET SW AU MOQ 6
FS524GE 24 PT FAST E-NET SW AU MOQ 6
FS524JP 24 PT FAST E-NET SW AU MOQ 6
FS524NA 24 PT FAST E-NET SW AU MOQ 6
FS524UK 24 PT FAST E-NET SW AU MOQ 6
FS562AU 8 PORT FIBER SWITCH
FS562GE 8 PORT FIBER SWITCH
FS562JP 8 PORT FIBER SWITCH
FS562NA 8 PORT FIBER SWITCH
FS562UK 8 PORT FIBER SWITCH
FS566AU 12 PORT FIBER SWITCH
FS566GE 12 PORT FIBER SWITCH
FS566JP 12 PORT FIBER SWITCH
FS566NA 12 PORT FIBER SWITCH
FS566UK 12 PORT FIBER SWITCH
GA620 1GBPS PCI FIBER CARD
GA620JP 1GBPS PCI FIBER CARD
GS504AU GIGABIT FIBERSWT 4PT
GS504GE GIGABIT FIBERSWT 4PT
GS504JP GIGABIT FIBERSWT 4PT
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ GIGABIT FIBERSWT 4PT
LCP100 CABLE MODEM
ND508AU NETWORK ▇▇▇▇ ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ NETWORK ▇▇▇▇ ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ NETWORK ▇▇▇▇ ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ NETWORK ▇▇▇▇ ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ NETWORK DISK DRIVE 20GB
ND520GE NETWORK ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇ NETWORK DISK DRIVE 20GB
ND520UK NETWORK DISK DRIVE 20GB
PA101 10M USB PHONELINE ADAPTER
PA301 10M PCI PHONELINE ADAPTER
PE102NA PHONELINE ETHERNET BRIDGE
PR356NA 56K ANALOG PHONELINE ROUTER
PS104AU PRINT SERVER WITH 4 PT HUB
PS104GE PRINT SERVER WITH 4 PT HUB
PS104JP PRINT SERVER WITH 4 PT HUB
PS104NA PRINT SERVER WITH 4 PT HUB
PS104UK PRINT SERVER WITH 4 PT HUB
PS105AU PRINT SERVER WITH 5 PT HUB
PS105FR PRINT SERVER WITH 5 PT HUB
PS105GE PRINT SERVER WITH 5 PT HUB
PS105GR PRINT SERVER WITH 5 PT HUB
PS105JP PRINT SERVER WITH 5 PT HUB
PS105NA PRINT SERVER WITH 5 PT HUB
PS105UK PRINT SERVER WITH 5 PT HUB
PS110AU 10/100 MBPS PRINT SERVER
PS110FR 10/100 MBPS PRINT SERVER
PS110GE 10/100 MBPS PRINT SERVER
PS110GR 10/100 MBPS PRINT SERVER
PS110JP 10/100 MBPS PRINT SERVER
Page 4 of 5
34
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 2: LIST OF PRODUCTS
PRODUCT PRODUCT DESCRIPTION
------- -------------------
PS111NA 10/100 MBPS PRINT SERVER
PS111UK 10/100 MBPS PRINT SERVER
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ ROUTER HUB
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ ROUTER HUB
RM356AU 56K MODEM/ROUTER W/4PT HUB
RM356GE 56K MODEM/ROUTER W/4PT HUB
RM356JP 56K MODEM/ROUTER W/4PT HUB
RM356NA 56K MODEM/ROUTER W/4PT HUB
RM356UK 56K MODEM/ROUTER W/4PT HUB
RT210AU ISDN ROUTER AU MOQ 1
RT210GE ISDN ROUTER EUROPE MOQ 1
RT210JP ISDN ROUTER JP MOQ 1
RT210UK ISDN ROUTER UK MOQ ▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇
▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇ MOQ 5
RT328GE ISDN ROUTER EUROPE MOQ 5
RT328KO ISDN ROUTER KOREA MOQ 5
RT328NA ISDN ROUTER NA MOQ 5
RT328UK ISDN ROUTER UK MOQ 5
RT338NA ISDN 10/100 ROUTER NA
SB104 PARTIAL SB104 W/HUB ONLY
SB104AU NTWRK STARTER KIT AU MOQ 5
SB104FR NTWRK STARTER KIT FRENCH
SBI04GE NTWRK STARTER KIT EU MOQ 5
SB104GR NTWRK STARTER KIT GERMAN
SB104NA NTWRK STARTER KIT NA MOQ 5
SB104NAR PARTIAL SB104 W/2 NIC CARDS
SB104UK NTWRK STARTER KIT UK MOQ 5
SW108AU 8PT 10B-T E-NET SW AU MOQ 10
SW108GE 8PT 10B-T E-NET SW EU MOQ 10
SW108JP 8PT 10B-T E-NET SW JP MOQ 10
SW108NA 8PT 10B-T E-NET SW NA MOQ 10
SW108UK 8PT 10B-T E-NET SW UK MOQ 10
SW502AU 2PT ▇▇/▇▇▇ ▇-▇▇▇ ▇▇ ▇▇ ▇▇▇ ▇
▇▇▇▇▇▇▇ ▇▇▇ ▇▇/▇▇▇ ▇-▇▇▇ ▇▇ ▇▇ ▇▇▇ ▇
▇▇▇▇▇▇▇ ▇▇▇ 10/100 E-NET SW JP MOQ 5
SW502NA 2PT 10/100 E-NET SW NA MOQ 5
SW502NAD DEMO 2PT ▇▇/▇▇▇ ▇-▇▇▇ ▇▇ ▇▇
▇▇▇▇▇▇▇ ▇▇▇ 10/100 E-NET SW UK MOQ 5
SW507AU 7PT ▇▇/▇▇▇ ▇-▇▇▇ ▇▇ ▇▇ ▇▇▇ ▇
▇▇▇▇▇▇▇ ▇▇▇ ▇▇/▇▇▇ ▇-▇▇▇ ▇▇ ▇▇ ▇▇▇ ▇
▇▇▇▇▇▇▇ ▇▇▇ 10/100 E-NET SW JP MOQ 5
SW507NA 7PT 10/100 E-NET SW NA MOQ 5
SW507NAD DEMO 7PT 10/100MBPS ENET SW
SW507UK 7PT 10/100 E-NET SW UK MOQ 5
SW510AU 10PT 10/100 E-NET SW AU MOQ 5
SW510GE 10PT 10/100 E-NET SW EU MOQ 5
SW510JP 10PT 10/100 E-NET SW JP MOQ 5
SW510NA 10PT 10/100 E-NET SW NA MOQ 5
SW510NAD DEMO 10PT 10/100 E-NET SW
SW510UK 10PT 10/100 E-NET SW UK MOQ 5
SW518AU 18PT 10/100 E-NET SW AU MOQ 5
SW518GE 18PT 10/100 E-NET SW EU MOQ 5
SW518JP 18JP 10/100 E-NET SW JP MOQ 5
SW518NA 18PT ▇▇/▇▇▇ ▇-▇▇▇ ▇▇ ▇▇ ▇▇▇ ▇
▇▇▇▇▇▇▇ 18PT ▇▇/▇▇▇ ▇-▇▇▇ ▇▇ ▇▇ ▇▇▇ ▇
▇▇▇▇▇▇▇ ▇▇▇▇ DIGITAL MODEM EU MOQ 5
XM128JP ISDN DIGITAL MODEM AUSTRALIA
XM128KO ISDN DIGITAL MODEM KO MOQ 5
XM128NA ISDN DIGITAL ▇▇▇▇▇ ▇▇ ▇▇▇ ▇
▇▇▇▇▇▇▇ ▇▇▇▇ DIGITAL MODEM SE MOQ 5
XM128UK ISDN DIGITAL MODEM UK MOQ 5
Page 5 of 5
35
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 1 of 13
36
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 2 of 13
37
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 3 of 13
38
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 4 of 13
39
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 5 of 13
40
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 6 of 13
41
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 7 of 13
42
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 8 of 13
43
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 9 of 13
44
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 10 of 13
45
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 11 of 13
46
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 12 of 13
47
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 3 PRODUCT PRICE LIST
[*]
Page 13 Of 13
48
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 4: BUILD PLAN EXAMPLE
PRODUCT MFR Cost ASP Sep Oct Nov Dec Jan Feb Mar Apr
DB104 ASP $ 156000 135200 135200 135200 135200 135200 135200 135200
DB104 INV $ 103 104 396005 261871 127737 117419 107101 107101 107101 107101
---------------------------------------------------------------------------------------------------------------------------------
DB104NA DELTA Beg Inv 8278 3838 2538 1238 1138 1038 1038 ▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ -▇▇▇▇ 0 0 1200 1200 1300 1300 1300
DB104NA DELTA Demand 1500 1300 1300 1300 1300 1300 1300 ▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ Inv 3838 2538 1238 1138 1038 1038 1038 1038
---------------------------------------------------------------------------------------------------------------------------------
DS104 ASP $ 328500 328500 328500 328500 328500 328500 328500 328500
DS104 INV $ 70 73 784055 470405 156755 331005 331005 331005 331005 331005
---------------------------------------------------------------------------------------------------------------------------------
DS104NA DELTA Beg Inv 9 11249 6749 2249 4749 4749 4749 ▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ 0 0 7000 4500 4500 4500 4500
DS104NA DELTA Demand 4500 4500 4500 4500 4500 4500 4500 ▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇▇ 6749 2249 4749 4749 4749 4749 4749
---------------------------------------------------------------------------------------------------------------------------------
DS106 ASP $ 93600 83200 83200 93600 93600 93600 93600 93600
DS106 INV $ 74 104 -46865 12271 71407 78799 86191 93583 100975 108367
---------------------------------------------------------------------------------------------------------------------------------
DS106NA DELTA Beg Inv 105 -634 166 966 1066 1166 1266 1366
DS106NA DELTA Build Plan 161 1600 1600 1000 1000 1000 1000 1000
DS106NA DELTA Demand 900 800 800 900 900 900 900 900
DS106NA DELTA End Inv -634 166 966 1066 1166 1266 1366 1466
---------------------------------------------------------------------------------------------------------------------------------
DS108 ASP $ 665000 665000 665000 598500 598500 598500 598500 598500
DS108 INV $ 101 133 -8651 -310421 192529 444004 444004 444004 444004 444004
---------------------------------------------------------------------------------------------------------------------------------
DS108NA DELTA Beg Inv 279 -86 -3086 1914 4414 4414 4414 4414
DS108NA DELTA Build Plan 4635 2000 10000 7000 4500 4500 4500 4500
DS108NA DELTA Demand 5000 5000 5000 4500 4500 4500 4500 4500
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇ -▇▇ -▇▇▇▇ 1914 4414 4414 4414 4414 4414
---------------------------------------------------------------------------------------------------------------------------------
DS116 ASP $ 0 0 0 0 0 0 0 0
DS116 INV $ 128 0 231228 179844 115614 115614 115614 115614 115614 115614
---------------------------------------------------------------------------------------------------------------------------------
DS116NA DELTA Beg Inv 330 1800 1400 900 900 900 900 900
DS116NA DELTA Build Plan 2270 0 0 500 500 500 500 500
DS116NA DELTA Demand 800 400 500 500 500 500 500 500
DS116NA DELTA End Inv 1800 1400 900 900 900 900 900 900
---------------------------------------------------------------------------------------------------------------------------------
DS309 ASP $ 55500 64750 64750 74000 74000 74000 83250 83250
DS309 INV $ 122 185 69173 57016 75252 69173 63095 57016 44859 32702
---------------------------------------------------------------------------------------------------------------------------------
DS309NA LITE-ON Beg Inv 869 569 469 619 569 519 469 369
DS309NA LITE-ON Build Plan 0 250 500 350 350 350 350 350
DS309NA LITE-ON Demand 300 350 350 400 400 400 450 450
DS309NA LITE-ON End Inv 569 469 619 569 519 469 369 269
---------------------------------------------------------------------------------------------------------------------------------
DS508 ASP $ 80150 91600 91600 91600 80150 80150 80150 68700
DS508 INV $ 161 229 -43868 -76006 -76006 52546 60580 60580 60580 60580
---------------------------------------------------------------------------------------------------------------------------------
DS508NA DELTA Beg Inv 6 -273 -473 -473 327 377 377 377
DS508NA DELTA Build Plan 71 200 400 1200 400 350 350 300
DS508NA DELTA Demand 350 400 400 400 350 350 350 300
DS508NA DELTA End Inv -273 -473 -473 327 377 377 377 377
---------------------------------------------------------------------------------------------------------------------------------
DS516 ASP $ 310500 310500 310500 310500 310500 310500 310500 310500
DS516 INV $ 223 345 377561 288461 310736 221636 221636 221636 221636 221636
---------------------------------------------------------------------------------------------------------------------------------
DS516NA DELTA Beg Inv 929 1695 1295 1395 995 995 995 995
DS516NA DELTA Build Plan 1666 500 1000 500 900 900 900 900
DS516NA DELTA Demand 900 900 900 900 900 900 900 900
DS516NA DELTA End Inv 1695 1295 1395 995 995 995 995 995
---------------------------------------------------------------------------------------------------------------------------------
DS524 ASP $ 403000 403000 403000 403000 403000 403000 403000 403000
DS524 INV $ 284 403 336860 194845 194845 280054 280054 280054 280054 280054
---------------------------------------------------------------------------------------------------------------------------------
DS524NA DELTA Beg Inv 4 1186 686 686 986 986 986 986
DS524NA DELTA Build Plan 2182 500 1000 1300 1000 1000 1000 1000
DS524NA DELTA Demand 1000 1000 1000 1000 1000 1000 1000 1000
DS524NA DELTA End Inv 1186 686 686 986 986 986 986 986
---------------------------------------------------------------------------------------------------------------------------------
Page 1 of 9
49
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 4: BUILD PLAN EXAMPLE
PRODUCT MFR COST ASP Sep Oct Nov Dec Jan Feb Mar Apr
EA101C ASP$ 70000 70000 70000 70000 70000 70000 70000 70000
EA101C INV$ 25 35 151867 226057 176597 127137 77677 52947 52947 52947
-------------------------------------------------------------------------------------------------------------------------------
EA101C LITE-ON BEG INV 6141 6141 9141 7141 5141 3141 2141 2141
EA101C LITE-ON BUILD PLAN 2000 5000 0 0 0 1000 2000 2000
EA101C LITE-ON DEMAND 2000 2000 2000 2000 2000 2000 2000 2000
EA101C LITE-ON END INV 6141 9141 7141 5141 3141 2141 2141 2141
-------------------------------------------------------------------------------------------------------------------------------
EA201-10 ASP$ 15360 12800 12800 12800 12800 12800 12800 12800
EA201-10 INV$ 65 128 57893 51344 44795 38246 31697 25148 18599 12050
-------------------------------------------------------------------------------------------------------------------------------
▇▇▇▇▇-▇▇ ▇▇▇▇▇ BEG INV 604 884 784 684 584 484 384 284
▇▇▇▇▇-▇▇ ▇▇▇▇▇ BUILD PLAN 400 0 0 0 0 0 0 0
EA201-10 DLINK DEMAND 120 100 100 100 100 100 100 100
▇▇▇▇▇-▇▇ ▇▇▇▇▇ ▇▇▇ INV 884 784 684 584 484 384 284 184
-------------------------------------------------------------------------------------------------------------------------------
EA201C ASP$ 56000 56000 56000 56000 56000 56000 56000 56000
EA201C INV% 9 14 34034 16074 29544 38524 38524 38524 38524 38524
-------------------------------------------------------------------------------------------------------------------------------
EA201C DLINK BEG INV 2290 3790 1790 3290 4290 4290 4290 4290
▇▇▇▇▇▇ ▇▇▇▇▇ BUILD PLAN 5500 2000 2000 5500 5000 4000 4000 4000
▇▇▇▇▇▇ ▇▇▇▇▇ DEMAND 4000 4000 4000 4000 4000 4000 4000 4000
▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ INV 3790 1790 3290 4290 4290 4290 4290 4290
-------------------------------------------------------------------------------------------------------------------------------
EB104 ASP$ 40500 13500 13500 13500 13500 13500 13500 13500
EB104 INV$ 38 45 19045 7618 -3809 11427 11427 11427 11427 11427
-------------------------------------------------------------------------------------------------------------------------------
EB104NA DELTA BEG INV 900 500 200 -100 300 300 300 300
EB104NA DELTA BUILD PLAN 500 0 0 700 300 300 300 300
EB104NA DELTA DEMAND 900 300 300 300 300 300 300 ▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ INV 500 200 -100 300 300 300 300 300
-------------------------------------------------------------------------------------------------------------------------------
EN104 ASP$ 45600 49400 53200 57000 57000 57000 57000 57000
EN104 INV$ 26 38 54571 85315 113497 75067 36637 36637 36637 36637
-------------------------------------------------------------------------------------------------------------------------------
EB104NA DELTA BEG INV 830 2130 3330 4430 2930 1430 1430 1430
EB104NA DELTA BUILD PLAN 2500 2500 2500 0 0 1500 1500 1500
EB104NA DELTA DEMAND 1200 1300 1400 1500 1500 1500 1500 ▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ INV 2130 3330 4430 2930 1430 1430 1430 1430
-------------------------------------------------------------------------------------------------------------------------------
EN104TP ASP$ 336000 252000 252000 252000 252000 252000 252000 252000
EN104TP INV$ 20 28 78238 39158 -78082 136858 156398 175938 175938 175938
-------------------------------------------------------------------------------------------------------------------------------
EN104TPNA DELTA BEG INV 4 4004 2004 -3996 7004 8004 9004 9004
EN104TPNA DELTA BUILD PLAN 16000 7000 3000 2000 10000 10000 9000 9000
EN104TPNA DELTA DEMAND 12000 9000 9000 9000 9000 9000 9000 9000
EN104TPNA DELTA END INV 4004 2004 -3996 7004 8004 9004 9004 9004
-------------------------------------------------------------------------------------------------------------------------------
EN106TP ASP$ 40800 34000 34000 34000 34000 34000 34000 34000
EN106TP INV$ 25 34 19761 32096 32096 24695 24695 24695 24695 24695
-------------------------------------------------------------------------------------------------------------------------------
EN106TPNA DELTA BEG INV 1 801 1301 1301 1001 1001 1001 1001
EN106TPNA DELTA BUILD PLAN 2000 1500 1000 700 1000 1000 1000 1000
EN106TPNA DELTA DEMAND 1200 1000 1000 1000 1000 1000 1000 1000
EN106TPNA DELTA END INV 801 1301 1301 1001 1001 1001 1001 1001
-------------------------------------------------------------------------------------------------------------------------------
EN108 ASP$ 46800 46800 52000 52000 52000 52000 52000 52000
EN108 INV$ 39 52 16408 29985 39682 39682 39682 39682 39682 39682
-------------------------------------------------------------------------------------------------------------------------------
EN108NA DELTA BEG INV 423 423 773 1023 1023 1023 1023 1023
EN108NA DELTA BUILD PLAN 900 1250 1250 1000 1000 1000 1000 1000
EN108NA DELTA DEMAND 900 900 1000 1000 1000 1000 1000 1000
EN108NA DELTA END INV 423 773 1023 1023 1023 1023 1023 1023
-------------------------------------------------------------------------------------------------------------------------------
EN108TP ASP$ 220000 220000 220000 220000 220000 220000 220000 220000
EN108TP INV$ 29 40 -29430 -73575 -58860 132435 132435 132435 132435 132435
-------------------------------------------------------------------------------------------------------------------------------
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇ -1000 -2500 -2000 4500 4500 4500 4500
EN108TPNA DELTA BUILD PLAN 3500 4000 6000 12000 5500 5500 5500 5500
EN108TPNA DELTA DEMAND 5500 5500 5500 5500 5500 5500 5500 5500
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇ -▇▇▇▇ -2500 -2000 4500 4500 4500 4500 4500
-------------------------------------------------------------------------------------------------------------------------------
Page 2 of 9
50
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 4: BUILD PLAN EXAMPLE
PRODUCT MFR Cost ASP Sep Oct Nov Dec Jan Feb Mar Apr
EN116 ASP $ 51600 51600 51600 51600 51600 51600 51600 51600
EN116 INV $ 59 86 19223 84605 49007 37141 37141 37141 37141 37141
----------------------------------------------------------------------------------------------------
EN116NA DELTA BEG INV 924 324 1426 826 626 626 626 626
EN116NA DELTA BUILD PLAN 0 1702 0 400 600 600 600 600
EN116NA DELTA DEMAND 600 600 600 600 600 600 600 600
EN116NA DELTA END INV 324 1426 826 626 626 626 626 626
----------------------------------------------------------------------------------------------------
EN308 ASP $ 52500 37500 37500 0 0 0 0 0
EN308 INV $ 50 75 -21481 4436 -20484 -20484 -20484 -20484 -20484 -20484
----------------------------------------------------------------------------------------------------
EN308NA DLINK BEG INV ▇▇▇ -▇▇▇ ▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇
▇▇▇▇▇▇▇ DLINK BUILD PLAN 0 1020 0 0 0 0 0 0
EN308NA DLINK DEMAND 700 500 500 0 0 0 0 0
EN308NA DLINK END ▇▇▇ -▇▇▇ ▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇
----------------------------------------------------------------------------------------------------
EN308TC ASP $ 10350 17250 17250 34500 41400 55200 55200 55200
EN308TC INV $ 44 69 122650 111552 100455 78260 51626 33870 33870 33870
----------------------------------------------------------------------------------------------------
EN308TCNA DELTA BEG INV 2913 2763 2513 2263 1763 1163 763 763
EN308TCNA DELTA BUILD PLAN 0 0 0 0 0 400 800 800
EN308TCNA DELTA DEMAND 150 250 250 500 600 800 800 ▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ INV 2763 2513 2263 1763 1163 763 763 763
----------------------------------------------------------------------------------------------------
EN516 ASP $ 55200 46000 46000 46000 46000 46000 46000 46000
EN516 INV $ 88 92 59426 15666 -28094 41922 41922 41922 41922 41922
----------------------------------------------------------------------------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇ 679 179 -321 479 479 479 479
EN516NA DELTA BUILD PLAN 0 0 0 1300 500 500 500 500
EN516NA DELTA DEMAND 600 500 500 500 500 500 500 500
EN516NA DELTA END INV 679 179 -321 479 479 479 479 479
----------------------------------------------------------------------------------------------------
EN524 ASP $ 106250 87500 87500 87500 87500 87500 87500 87500
EN524 INV $ 95 125 -1810 -11334 -20858 74382 74382 74382 74382 74382
----------------------------------------------------------------------------------------------------
EN524NA DELTA BEG INV 31 -19 -119 -219 781 781 781 781
EN524NA DELTA BUILD PLAN 800 600 600 1700 700 700 700 700
EN524NA DELTA DEMAND 850 700 700 700 700 700 700 700
EN524NA DELTA END INV -19 -119 -219 781 781 781 781 781
----------------------------------------------------------------------------------------------------
FA31010 ASP $ 142800 142800 142800 151200 151200 151200 159600 159600
FA31010 INV $ 120 168 212219 110363 248168 140321 152304 164287 170278 176270
----------------------------------------------------------------------------------------------------
FA31010 LITE-ON BEG INV 2021 1771 921 2071 1171 1271 1371 1421
FA31010 LITE-ON BUILD PLAN 600 0 2000 0 1000 1000 1000 1000
FA31010 LITE-ON DEMAND 850 850 850 900 900 900 950 950
FA31010 LITE-ON END INV 1771 921 2071 1171 1271 1371 1421 1471
----------------------------------------------------------------------------------------------------
FA31050 see Sec.02 ASP $ 117450 117450 117450 117450 117450 117450 117450 117450
FA31050 INV $ 642 783 94267 254847 158499 62151 62151 62151 62151 62151
----------------------------------------------------------------------------------------------------
FA31050 LITE-ON BEG INV 297 147 397 247 97 97 97 97
FA31050 LITE-ON BUILD PLAN 0 400 0 0 150 150 150 150
FA31050 LITE-ON DEMAND 150 150 150 150 150 150 150 150
FA31050 LITE-ON END INV 147 397 247 97 97 97 97 97
----------------------------------------------------------------------------------------------------
FA310 SINGLE ASP $ 800000 800000 900000 900000 900000 900000 900000 900000
FA310 SINGLE INV $ 15 20 117608 42708 417208 641908 641908 641908 641908 641908
----------------------------------------------------------------------------------------------------
FA310TX LITE-ON ▇▇▇ ▇▇▇ ▇▇▇▇▇ 7851 2851 27851 42851 42851 42851 42851
FA310TX LITE-ON BUILD PLAN 23400 35000 70000 60000 45000 45000 45000 45000
FA310TX LITE-ON DEMAND 40000 40000 45000 45000 45000 45000 45000 45000
FA310TX ▇▇▇▇-▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇ 2851 27851 42851 42851 42851 42851 42851
----------------------------------------------------------------------------------------------------
FA310 TXC ASP $ 66000 66000 66000 66000 66000 66000 66000 66000
FA310 TXC INV $ 15 22 26155 -18785 -41255 33645 48625 48625 48625 48625
----------------------------------------------------------------------------------------------------
FA310TXC LITE-ON BEG INV 1246 1746 -1254 -2754 2246 3246 3246 3246
FA310TXC LITE-ON BUILD PLAN 3500 0 1500 8000 4000 3000 3000 3000
FA310TXC LITE-ON DEMAND 3000 3000 3000 3000 3000 3000 3000 3000
FA310TXC ▇▇▇▇-▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇ -1254 -2754 2246 3246 3246 3246 3246
----------------------------------------------------------------------------------------------------
Page 3 of 9
51
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 4: BUILD PLAN EXAMPLE
PRODUCT MFR Cost ASP Sep Oct Nov Dec Jan Feb Mar Apr
FA312 ASP $ 0 0 0 0 0 0 0 0
FA312 INV $ 0 0 0 0 0 0 0 0 0 0
____________________________________________________________________________________________________________________________________
FA312 LITE-ON Beg Inv 0 0 0 0 0 10000 10000 10000
FA312 LITE-ON Build Plan 0 0 0 0 10000 10000 10000 10000
FA312 LITE-ON Demand 0 0 0 0 0 10000 10000 10000
FA312 LITE-ON End Inv 0 0 0 0 10000 10000 10000 10000
____________________________________________________________________________________________________________________________________
FA410C ASP $ 432000 450000 450000 450000 450000 450000 450000 450000
FA410C INV $ 44 60 2956 -129404 113256 400036 400036 400036 400036 400036
____________________________________________________________________________________________________________________________________
FA410C ▇▇▇▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇ 67 -2933 2567 9067 9067 9067 9067
FA410C DLINK Build Plan 0 4500 13000 14000 7500 7500 7500 7500
FA410C DLINK Demand 7200 7500 7500 7500 7500 7500 7500 7500
FA410C DLINK End Inv 67 -2933 2567 9067 9067 9067 9067 9067
____________________________________________________________________________________________________________________________________
FA510 ASP $ 94500 94500 113400 113400 157500 157500 189000 189000
FA510 INV $ 39 63 243766 340116 540524 471152 374802 278452 162832 47212
____________________________________________________________________________________________________________________________________
FA510C AMBICOM Beg Inv 5825 6325 8825 14025 12225 9725 7225 4225
FA510C AMBICOM Build Plan 2000 4000 7000 0 0 0 0 0
FA510C AMBICOM Demand 1500 1500 1800 1800 2500 2500 3000 3000
FA510C ▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇ 8825 14025 12225 9725 7225 4225 1225
____________________________________________________________________________________________________________________________________
FB104 ASP $ 64500 64500 64500 64500 64500 64500 64500 64500
FB104 INV $ 85 86 145965 82057 43713 47973 47973 47973 47973 47973
____________________________________________________________________________________________________________________________________
FB104NA DELTA Beg Inv 2463 1713 963 513 563 563 563 563
FB104NA DELTA Build Plan 0 0 300 800 750 750 750 750
FB104NA DELTA Demand 750 750 750 750 750 750 750 ▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ Inv 1713 963 513 563 563 563 563 563
____________________________________________________________________________________________________________________________________
FB108 ASP $ #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
FB108 INV $ 117 139 #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
____________________________________________________________________________________________________________________________________
FB108NA DELTA Beg Inv 11 11 11 11 11 11 11 11
FB108NA DELTA Build Plan 0 0 0 0 0 0 0 0
FB108NA DELTA Demand 0 0 0 0 0 0 0 0
FB108NA DELTA End Inv 11 11 11 11 11 11 11 11
____________________________________________________________________________________________________________________________________
FE104 ASP $ 22800 22800 34200 34200 28500 28500 28500 28500
FE104 INV $ 47 57 97002 172490 144182 115874 92284 68694 45104 21514
____________________________________________________________________________________________________________________________________
FE104NA DELTA Beg Inv 456 2056 3656 3056 2456 1956 1456 956
FE104NA DELTA Build Plan 2000 2000 0 0 0 0 0 0
FE104NA DELTA Demand 400 400 600 600 500 500 500 500
FE104NA DELTA End Inv 2056 3656 3056 2456 1956 1456 956 456
____________________________________________________________________________________________________________________________________
FE108 ASP $ 176400 117600 117600 117600 98000 98000 98000 98000
FE108 INV $ 85 98 -120573 32589 58116 83643 83643 83643 83643 83643
____________________________________________________________________________________________________________________________________
FE108NA DELTA Beg Inv 183 -1417 383 683 983 983 983 983
FE108NA DELTA Build Plan 200 3000 1500 1500 1000 1000 1000 1000
FE108NA DELTA Demand 1800 1200 1200 1200 1000 1000 1000 1000
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇ -▇▇▇▇ 383 683 983 983 983 983 983
____________________________________________________________________________________________________________________________________
FE116 ASP $ 46250 64750 46250 46250 46250 46250 46250 46250
FE116 INV $ 139 185 56136 7503 -13339 21398 21398 21398 21398 21398
____________________________________________________________________________________________________________________________________
FE116NA DELTA Beg Inv 654 404 54 -96 154 154 154 154
FE116NA DELTA Build Plan 0 0 100 500 250 250 250 250
FE116NA DELTA Demand 250 350 250 250 250 250 250 250
FE116NA DELTA End Inv 404 54 -96 154 154 154 154 154
____________________________________________________________________________________________________________________________________
FE508 ASP $ 10600 10600 10600 10600 10600 10600 10600 10600
FE508 INV $ 154 212 8806 11896 14986 7261 7261 7261 7261 7261
____________________________________________________________________________________________________________________________________
FE508NA DELTA Beg Inv 107 57 77 97 47 47 47 47
FE508NA DELTA Build Plan 0 70 70 0 50 50 50 50
FE508NA DELTA Demand 50 50 50 50 50 50 50 50
FE508NA DELTA End Inv 57 77 97 47 47 47 47 47
____________________________________________________________________________________________________________________________________
Page 4 of 9
52
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 4: BUILD PLAN EXAMPLE
PRODUCT MFR COST ASP Sep Oct Nov Dec Jan Feb Mar Apr
FE516 ASP $ 45750 54900 54900 54900 54900 54900 54900 54900
FE516 INV $ 219 305 29319 77455 103711 64327 46823 40259 40259 40259
-----------------------------------------------------------------------------------------------------------------------------
FE516NA DELTA BEG INV 10 134 354 474 294 214 184 184
FE516NA DELTA BUILD PLAN 274 400 300 0 100 150 180 180
FE516NA DELTA DEMAND 150 180 180 180 180 180 180 180
FE516NA DELTA END INV 134 354 474 294 414 184 184 184
-----------------------------------------------------------------------------------------------------------------------------
FS102 ASP $ 4300 0 0 0 0 0 0 0
FS102 INV $ 74 86 8167 15525 15525 15525 15525 15525 15525 15525
-----------------------------------------------------------------------------------------------------------------------------
FS102NA DELTA BEG INV 11 111 211 211 211 211 211 211
FS102NA DELTA BUILD PLAN 150 100 0 0 0 0 0 0
FS102NA DELTA DEMAND 50 0 0 0 0 0 0 0
FS102NA DELTA END INV 111 211 211 211 211 211 211 211
-----------------------------------------------------------------------------------------------------------------------------
FS104 ASP $ 93100 93100 0 0 0 0 0 0
FS104 INV $ 133 133 -40177 -86495 -86495 -86495 -86495 -86495 -86495 -86495
-----------------------------------------------------------------------------------------------------------------------------
FS104NA DELTA BEG INV ▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇
▇▇▇▇▇▇▇ DELTA BUILD PLAN 392 353 0 0 0 0 0 0
FS104NA DELTA DEMAND 700 700 0 0 0 0 0 0
FS104NA DELTA END INV -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇
-----------------------------------------------------------------------------------------------------------------------------
FS105 ASP $ 0 332500 266000 266000 266000 266000 266000 266000
FS105 INV $ 133 133 0 -66740 -66740 200220 266960 266960 266960 266960
-----------------------------------------------------------------------------------------------------------------------------
FS105NA LITE-ON BEG INV 0 0 -500 -500 1500 2000 2000 2000
FS105NA LITE-ON BUILD PLAN 0 2000 2000 4000 2500 2000 2000 2000
FS105NA LITE-ON DEMAND 0 2500 2000 2000 2000 2000 2000 2000
FS105NA LITE-ON END INV 0 -500 -500 1500 2000 2000 2000 2000
-----------------------------------------------------------------------------------------------------------------------------
FS108 ASP $ 363000 363000 363000 363000 363000 363000 363000 363000
▇▇▇▇▇ ▇▇▇ $ 134 165 587334 291786 -3762 305220 305220 305220 305220 305220
-----------------------------------------------------------------------------------------------------------------------------
FS108NA DELTA BEG INV 2022 4372 2172 -28 2272 2272 2272 2272
FS108NA DELTA BUILD PLAN 4550 0 0 4500 2200 2200 2200 2200
FS108NA DELTA DEMAND 2200 2200 2200 2200 2200 2200 2200 ▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ INV 4372 2172 -28 2272 2272 2272 2272 2272
-----------------------------------------------------------------------------------------------------------------------------
FS308 ASP $ 41800 52250 52250 52250 62700 62700 62700 62700
▇▇▇▇▇ ▇▇▇ $ 159 209 103375 63737 47882 39955 39955 39955 39955 39955
-----------------------------------------------------------------------------------------------------------------------------
FS308NA DELTA BEG INV 852 652 402 302 252 252 252 252
FS308NA DELTA BUILD PLAN 0 0 150 200 300 300 300 300
FS308NA DELTA DEMAND 200 250 250 250 300 300 300 300
FS308NA DELTA END INV 652 402 302 252 252 252 252 252
-----------------------------------------------------------------------------------------------------------------------------
FS508 ASP $ 88660 88660 80600 80600 72540 72540 72540 72540
▇▇▇▇▇ ▇▇▇ $ 271 403 71607 11935 -42313 66183 66183 66183 66183 66183
-----------------------------------------------------------------------------------------------------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ BEG INV 484 264 44 -156 244 244 244 244
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ BUILD PLAN 0 0 0 600 180 180 180 180
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ DEMAND 220 220 200 200 180 180 180 180
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ END INV 264 44 -156 244 244 244 244 244
-----------------------------------------------------------------------------------------------------------------------------
FS509 ASP $ 67900 33950 67900 67900 67900 67900 67900 67900
▇▇▇▇▇ ▇▇▇ $ 409 679 173285 357195 316326 275457 234588 193719 152850 111981
-----------------------------------------------------------------------------------------------------------------------------
FS509NA DELTA BEG INV 435 424 874 774 674 574 474 374
FS509NA DELTA BUILD PLAN 89 500 0 0 0 0 0 0
FS509NA DELTA DEMAND 100 50 100 100 100 100 100 100
FS509NA DELTA END INV 424 874 774 674 574 474 374 274
-----------------------------------------------------------------------------------------------------------------------------
FS510T ASP $ 0 0 0 0 0 0 0 0
FS510T INV $ 0 0 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
FS510TNA DELTA BEG INV 0 0 0 100 100 100 100 150
FS510TNA DELTA BUILD PLAN 0 0 300 100 50 100 200 150
FS510TNA DELTA DEMAND 0 0 200 100 50 100 150 150
FS510TNA DELTA END INV 0 0 100 100 100 100 150 150
-----------------------------------------------------------------------------------------------------------------------------
Page 5 of 9
53
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 4: BUILD PLAN EXAMPLE
PRODUCT MFR COST ASP Sep Oct Nov Dec Jan Feb Mar Apr
FS516 ASP $ 247950 192850 247950 247950 247950 247950 247950 247950
FS516 INV $ 533 551 -11727 -65030 228137 228137 228137 228137 228137 228137
----------------------------------------------------------------------------------------------------------
FS516NA DELTA BEG INV 10 -22 -122 428 428 428 428 428
FS516NA DELTA BUILD PLAN 418 250 1000 450 450 450 450 450
FS516NA DELTA DEMAND 450 450 450 450 450 450 450 450
FS516NA DELTA END INV -22 -122 428 428 428 428 428 428
----------------------------------------------------------------------------------------------------------
FS518 ASP $ 0 0 0 0 0 0 0 0
FS518 INV $ 676 0 135168 168960 168960 101376 67584 67584 67584 67584
----------------------------------------------------------------------------------------------------------
FS518NA DELTA BEG INV 59 200 250 250 150 100 100 100
FS518NA DELTA BUILD PLAN 241 150 100 0 50 100 100 100
FS518NA DELTA DEMAND 100 100 100 100 100 100 100 100
FS518NA DELTA END INV 200 250 250 150 100 100 100 100
----------------------------------------------------------------------------------------------------------
FS518T ASP $ 0 0 0 0 0 0 0 0
FS518T INV $ 0 0 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------------------
FS518TNA DELTA BEG INV 0 0 0 100 100 100 100 100
FS518TNA DELTA BUILD PLAN 0 0 250 100 50 100 100 100
FS518TNA DELTA DEMAND 0 0 150 100 50 100 100 100
FS518TNA DELTA END INV 0 0 100 100 100 100 100 100
----------------------------------------------------------------------------------------------------------
FS524 ASP $ 319000 223300 255200 255200 255200 287100 287100 287100
▇▇▇▇▇ ▇▇▇ $ 393 638 78578 174836 96258 174836 174836 174836 174836 174836
----------------------------------------------------------------------------------------------------------
FS524NA DELTA BEG INV 700 200 445 245 445 445 445 445
FS524NA DELTA BUILD PLAN 0 595 200 600 400 450 450 450
FS524NA DELTA DEMAND 500 350 400 400 400 450 450 450
FS524NA DELTA END INV 200 445 245 445 445 445 445 445
----------------------------------------------------------------------------------------------------------
FS562 ASP $ 37700 37700 37700 37700 37700 37700 37700 37700
▇▇▇▇▇ ▇▇▇ $ 486 754 28698 78797 54477 30157 5837 -18483 -42803 -67123
----------------------------------------------------------------------------------------------------------
FS562NA DELTA BEG INV 109 59 162 112 62 ▇▇ -▇▇ -▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ BUILD PLAN 0 153 0 0 0 0 0 0
FS562NA DELTA DEMAND 50 50 50 50 50 50 50 50
FS562NA DELTA END INV 59 162 112 62 12 -38 -88 -138
----------------------------------------------------------------------------------------------------------
FS566 ASP $ 13572 13572 13572 13572 13572 13572 13572 13572
▇▇▇▇▇ ▇▇▇ $ 741 1,131 287322 278436 269549 260663 251777 242891 234004 225118
----------------------------------------------------------------------------------------------------------
FS566NA DELTA BEG INV 400 388 376 364 352 340 328 316
FS566NA DELTA BUILD PLAN 0 0 0 0 0 0 0 0
FS566NA DELTA DEMAND 12 12 12 12 12 12 12 12
FS566NA DELTA END INV 388 376 364 352 340 328 316 304
----------------------------------------------------------------------------------------------------------
GA310 ASP $ 0 0 0 0 0 0 0 0
GA310 INV $ 0 0 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------------------
GA310 DELTA BEG INV 0 0 0 0 0 0 0 0
GA310 DELTA BUILD PLAN 0 0 0 0 0 0 0 0
GA310 DELTA DEMAND 0 0 0 0 0 0 0 0
GA310 DELTA END ▇▇▇ ▇ ▇ ▇ ▇ ▇ ▇ ▇ ▇
----------------------------------------------------------------------------------------------------------
▇▇▇▇▇ ASP $ 40500 40500 40500 48600 48600 48600 48600 48600
GA620 INV $ 166 270 231403 206521 214815 184956 155098 125239 95381 65523
----------------------------------------------------------------------------------------------------------
▇▇▇▇▇ ▇▇▇/▇▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇ 1395 1245 1295 1115 935 755 575
GA620 ALT/CTH BUILD PLAN 0 0 200 0 0 0 0 0
GA620 ALT/CTH DEMAND 150 150 150 180 180 180 180 180
GA620 ALT/CTH END INV 1395 1245 1295 1115 935 755 575 395
----------------------------------------------------------------------------------------------------------
GS504 ASP $ 0 0 0 0 0 0 0 0
GS504 INV $ 781 0 28913 62515 62515 46886 46886 46886 46886 46886
----------------------------------------------------------------------------------------------------------
GS504NA DELTA BEG INV 67 37 80 80 60 60 60 60
GS504NA DELTA BUILD PLAN 0 93 50 30 50 50 50 50
GS504NA DELTA DEMAND 30 50 50 50 50 50 50 50
GS504NA DELTA END INV 37 80 80 60 60 60 60 60
----------------------------------------------------------------------------------------------------------
Page 6 of 9
54
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 4: BUILD PLAN EXAMPLE
PRODUCT MFR COST ASP Sep Oct Nov Dec Jan Feb Mar Apr
GS504T ASP $ 0 0 0 0 0 0 0 0
GS504T INV $ 0 0 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------------------------
GS504TNA DELTA BEG INV 0 0 0 50 50 50 50 50
GS504TNA DELTA BUILD PLAN 0 0 100 50 50 50 50 50
GS504TNA DELTA DEMAND 0 0 50 50 50 50 50 50
GS504TNA DELTA END INV 0 0 50 50 50 50 50 50
---------------------------------------------------------------------------------------------------------
GS508T ASP $ 0 0 0 0 0 0 0 0
GS508T INV $ 0 0 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------------------------
GS508TNA DELTA BEG INV 0 0 0 30 30 30 30 30
GS508TNA DELTA BUILD PLAN 0 0 60 30 30 30 30 30
GS508TNA DELTA DEMAND 0 0 30 30 30 30 30 30
GS508TNA DELTA END INV 0 0 30 30 30 30 30 30
---------------------------------------------------------------------------------------------------------
ND508 ASP $ 23200 46400 46400 46400 69600 69600 69600 69600
ND508 INV $ 329 464 359837 326915 392759 359837 310454 261071 211688 162305
---------------------------------------------------------------------------------------------------------
ND508NA DELTA BEG INV 41 1093 993 1193 1093 943 793 643
ND508NA DELTA BUILD PLAN 1102 0 300 0 0 0 0 0
ND508NA DELTA DEMAND 50 100 100 100 150 150 150 150
ND508NA DELTA END INV 1093 993 1193 1093 943 793 643 493
---------------------------------------------------------------------------------------------------------
ND520 ASP $ 45240 75400 113100 113100 150800 150800 150800 150800
ND520 INV $ 497 754 120832 619076 743389 668801 569351 469901 370451 271001
---------------------------------------------------------------------------------------------------------
ND520NA DELTA BEG INV 303 243 1245 1495 1345 1145 945 745
ND520NA DELTA BUILD PLAN 0 1102 400 0 0 0 0 0
ND520NA DELTA DEMAND 60 100 150 150 200 200 200 200
ND520NA DELTA END INV 243 1245 1495 1345 1145 945 745 545
---------------------------------------------------------------------------------------------------------
PA101 ASP $ 0 0 0 0 0 0 0 0
PA101 INV $ 0 0 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------------------------
PA101 DELTA BEG INV 0 0 -1500 7500 7500 7500 7500 7500
PA101 DELTA BUILD PLAN 0 500 17000 4000 4000 4000 4000 4000
PA101 DELTA DEMAND 0 2000 8000 4000 4000 4000 4000 4000
PA101 DELTA END INV 0 -1500 7500 7500 7500 7500 7500 7500
---------------------------------------------------------------------------------------------------------
PA301 ASP $ 0 0 0 0 0 0 0 0
PA301 INV $ 0 0 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------------------------
PA301 DELTA BEG INV 0 0 -1500 7500 7500 7500 7500 7500
PA301 DELTA BUILD PLAN 0 500 17000 4000 4000 4000 4000 4000
PA301 DELTA DEMAND 0 2000 8000 4000 4000 4000 4000 4000
PA301 DELTA END INV 0 -1500 7500 7500 7500 7500 7500 7500
---------------------------------------------------------------------------------------------------------
PE302 ASP $ 0 0 0 0 0 0 0 0
PE302 INV $ 0 0 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------------------------
PE302NA DELTA BEG INV 0 0 400 300 500 500 500 500
PE302NA DELTA BUILD PLAN 0 400 400 700 500 500 500 500
PE302NA DELTA DEMAND 0 0 500 500 500 500 500 500
PE302NA DELTA END INV 0 400 300 500 500 500 500 500
---------------------------------------------------------------------------------------------------------
PR356 ASP $ 0 0 0 0 0 0 0 0
PR356 INV $ 0 0 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------------------------
PR356NA DELTA BEG INV 0 0 0 1800 1600 1400 1200 1000
PR356NA DELTA BUILD PLAN 0 0 2000 0 0 0 0 0
PR356NA DELTA DEMAND 0 0 200 200 200 200 200 200
PR356NA DELTA END INV 0 0 1800 1600 1400 1200 1000 800
---------------------------------------------------------------------------------------------------------
PS104 ASP $ 35100 27300 27300 27300 27300 27300 27300 27300
PS104 INV $ 64 78 109593 87109 64625 48565 48565 48565 48565 48565
---------------------------------------------------------------------------------------------------------
PS104NA SERCOMM BEG INV 2156 1706 1356 1006 756 756 756 756
PS104NA SERCOMM BUILD PLAN 0 0 0 100 350 350 350 350
PS104NA SERCOMM DEMAND 450 350 350 350 350 350 350 350
PS104NA SERCOMM END INV 1706 1356 1006 756 756 756 756 756
---------------------------------------------------------------------------------------------------------
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55
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 4: BUILD PLAN EXAMPLE
PRODUCT MFR Cost ASP Sep Oct Nov Dec Jan Feb Mar Apr
PS105 ASP $ 0 0 0 0 0 0 0 0
PS105 INV $ 68 82 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------
PS105NA SERCOMM BEG INV 0 0 0 0 0 0 0 0
PS105NA SERCOMM BUILD PLAN 0 0 0 0 0 0 0 0
PS105NA SERCOMM DEMAND 0 0 0 0 0 0 0 0
PS105NA SERCOMM END INV 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------
PS110 ASP $ 199500 119700 119700 119700 119700 119700 119700 119700
PS110 INV $ 85 133 -64858 2790 -39490 78894 78894 78894 78894 78894
------------------------------------------------------------------------------------------------------------------
PS110NA SERCOMM BEG INV 733 -767 33 -467 933 933 933 933
PS110NA SERCOMM BUILD PLAN 0 1700 400 2300 900 900 900 900
PS110NA SERCOMM DEMAND 1500 900 900 900 900 900 900 900
PS110NA SERCOMM END INV -767 33 -467 933 933 933 933 933
------------------------------------------------------------------------------------------------------------------
RH340 ASP $ 0 0 0 0 0 0 0 0
RH340 INV $ 145 0 36310 36310 72620 101668 101668 101668 101668 101668
------------------------------------------------------------------------------------------------------------------
RH340NA ZYXEL BEG INV $ 0 250 250 500 700 700 700 700
RH340NA ZYXEL BUILD PLAN 250 500 750 1000 800 800 800 800
RH340NA ZYXEL DEMAND 0 500 500 800 800 800 800 800
RH340NA ZYXEL END INV 250 250 500 700 700 700 700 700
------------------------------------------------------------------------------------------------------------------
RH348 ASP $ 91000 91000 91000 91000 91000 91000 91000 91000
RH348 INV $ 177 260 94438 32656 50308 59134 59134 59134 59134 59134
------------------------------------------------------------------------------------------------------------------
RH348NA ZYXEL BEG INV 885 535 185 285 335 335 335 335
RH348NA ZYXEL BUILD PLAN 0 0 450 400 350 350 350 350
RH348NA ZYXEL DEMAND 350 350 350 350 350 350 350 350
RH348NA ZYXEL END INV 535 185 285 335 335 335 335 335
------------------------------------------------------------------------------------------------------------------
RM356 ASP $ 80850 80850 80850 80850 80850 80850 80850 80850
RM356 INV $ 148 231 96628 133735 156000 104049 52099 52099 52099 52099
------------------------------------------------------------------------------------------------------------------
RM356NA ▇▇▇▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇ 651 901 1051 701 351 351 351
RM356NA ZYXEL BUILD PLAN 0 600 500 0 0 350 350 350
RM356NA ZYXEL DEMAND 350 350 350 350 350 350 350 350
RM356NA ZYXEL END INV 651 901 1051 701 351 351 351 351
------------------------------------------------------------------------------------------------------------------
RT210 ASP $ 0 0 0 0 0 0 0 0
RT210 INV $ 294 395 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------
RT210NA IMS BEG INV 0 0 0 0 0 0 0 0
RT210NA IMS BUILD PLAN 0 0 0 0 0 0 0 0
RT210NA IMS DEMAND 0 0 0 0 0 0 0 0
RT210NA IMS END INV 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------
RT311 ASP $ 0 0 0 0 0 0 0 0
RT311 INV $ 140 0 -27988 -27988 27988 27988 27988 27988 27988 27988
------------------------------------------------------------------------------------------------------------------
RT311NA ZYXEL BEG INV 0 -200 -200 200 200 200 200 200
RT311NA ZYXEL BUILD PLAN 0 200 600 200 200 200 200 200
RT311NA ZYXEL DEMAND 200 200 200 200 200 200 200 200
RT311NA ZYXEL END INV -200 -200 200 200 200 200 200 200
------------------------------------------------------------------------------------------------------------------
RT328 ASP $ 161700 161700 161700 0 0 0 0 0
RT328 INV $ 160 231 14045 30005 -81715 -81715 -18715 -18715 -18715 -18715
------------------------------------------------------------------------------------------------------------------
RT328NA ZYXEL BEG INV 788 ▇▇ ▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇
RT328NA ZYXEL BUILD PLAN 0 800 0 0 0 0 0 0
RT328NA ZYXEL DEMAND 700 700 700 0 0 0 0 0
RT328NA ZYXEL END INV ▇▇ ▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇
------------------------------------------------------------------------------------------------------------------
RT338 ASP $ 0 0 0 0 0 0 0 0
RT338 INV $ 172 0 0 103062 171770 137416 137416 137416 137416 137416
------------------------------------------------------------------------------------------------------------------
RT338NA ZYXEL BEG INV 0 0 600 1000 800 800 800 800
RT338NA ZYXEL BUILD PLAN 0 600 800 400 800 900 900 900
RT338NA ZYXEL DEMAND 0 0 400 600 800 900 900 900
RT338NA ZYXEL END INV 0 600 1000 800 800 800 800 800
------------------------------------------------------------------------------------------------------------------
Page 8 of 9
56
* Portions denoted with an CONFIDENTIAL TREATMENT REQUESTED
asterisk have been omitted
and filed separately with
the Securities and Exchange
Commission pursuant to
a request for confidential
treatment.
EXHIBIT 4: BUILD PLAN EXAMPLE
PRODUCT MFR COST ASP Sep Oct Nov Dec Jan Feb Mar Apr
SB104 ASP $ 45500 45500 45500 78000 78000 78000 78000 78000
SB104 INV $ 57 65 422735 382611 342487 273703 204919 136135 67351 67351
----------------------------------------------------------------------------------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇▇ 7375 6675 5975 4775 3575 2375 1175
SB104NA DELTA BUILD PLAN -8000 0 0 0 0 0 0 1200
SB104NA DELTA DEMAND 700 700 700 1200 1200 1200 1200 ▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ INV 7375 6675 5975 4775 3575 2375 1175 1175
----------------------------------------------------------------------------------------------------------
SW108 ASP $ 0 0 0 0 0 0 0 0
SW108 INV $ 149 265 9417 9417 9417 9417 9417 9417 9417 9417
----------------------------------------------------------------------------------------------------------
SW108NA DELTA BEG INV 58 63 63 63 63 63 63 63
SW108NA DELTA BUILD PLAN 5 0 0 0 0 0 0 0
SW108NA DELTA DEMAND 0 0 0 0 0 0 0 0
SW108NA DELTA END INV 63 63 63 63 63 63 63 63
----------------------------------------------------------------------------------------------------------
SW502 ASP $ 0 0 0 0 0 0 0 0
SW502 INV $ 148 549 2522 2522 2522 2522 2522 2522 2522 2522
----------------------------------------------------------------------------------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ BEG INV 17 17 17 17 17 17 17 17
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ BUILD PLAN 5 0 0 0 0 0 0 0
SW502NA ACCTON DEMAND 0 0 0 0 0 0 0 0
SW502NA ACCTON END INV 17 17 17 17 17 17 17 17
----------------------------------------------------------------------------------------------------------
SW507 ASP $ 0 0 0 0 0 0 0 0
SW507 INV $ 234 445 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ BEG INV 0 0 0 0 0 0 0 0
SW507NA ACCTON BUILD PLAN 0 0 0 0 0 0 0 0
SW507NA ACCTON DEMAND 0 0 0 0 0 0 0 0
SW507NA ACCTON END INV 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------------------
SW510 ASP $ 15660 20880 20880 20880 20880 20880 20880 20880
SW510 INV $ 206 261 39221 23459 6997 -9466 -25928 -42391 -58853 -75315
----------------------------------------------------------------------------------------------------------
SW510NA DELTA BEG INV 254 194 114 ▇▇ -▇▇ -▇▇▇ -▇▇▇ -▇▇▇
▇▇▇▇▇▇▇ DELTA BUILD PLAN 0 0 0 0 0 0 0 0
SW510NA DELTA DEMAND 60 80 80 80 80 80 80 80
SW510NA DELTA END INV 194 114 ▇▇ -▇▇ -▇▇▇ -▇▇▇ -▇▇▇ -▇▇▇
----------------------------------------------------------------------------------------------------------
▇▇▇▇▇ ASP $ 32240 32240 32240 32240 32240 32240 32240 32240
SW518 INV $ 245 403 66564 46986 27409 7831 -11747 -31324 -50902 -70479
----------------------------------------------------------------------------------------------------------
SW518NA DELTA BEG INV 39 272 192 112 ▇▇ -▇▇ -▇▇▇ -▇▇▇
SW518NA DELTA BUILD PLAN 313 0 0 0 0 0 0 0
SW518NA DELTA DEMAND 80 80 80 80 80 80 80 80
SW518NA DELTA END INV 272 192 112 ▇▇ -▇▇ -▇▇▇ -▇▇▇ -▇▇▇
----------------------------------------------------------------------------------------------------------
XM128 ASP $ 63900 56800 56800 56800 56800 56800 56800 56800
XM128 INV $ 111 142 -26753 -15652 -26753 39853 39853 39853 39853 39853
----------------------------------------------------------------------------------------------------------
XM128NA ZYXEL BEG INV 209 -241 -141 -241 359 359 359 359
XM128NA ZYXEL BUILD PLAN 0 500 300 1000 400 400 400 400
XM128NA ZYXEL DEMAND 450 400 400 400 400 400 400 400
XM128NA ZYXEL END INV -241 -141 -241 359 359 359 359 359
----------------------------------------------------------------------------------------------------------
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