1
EXHIBIT 10.10
TRW PROPRIETARY
CONTRACT CHANGE NOTICE AMENDMENT NO. 5
TO
TRW / STANFORD WAFER SUPPLY AGREEMENT
AGREEMENT NO. 1A551
THIS AMENDMENT ("Amendment") is made and entered into and between Stanford
Microdevices, Inc. ("Buyer") and TRW Inc., by and through its Space and
Electronics Group, a corporation organized and existing under the laws of Ohio,
having offices at Redondo Beach, California, USA ("TRW").
WHEREAS, Buyer and TRW entered into Agreement No. 1A551 with an
effective date of August 19, 1998.
WHEREAS, Buyer and TRW desire to amend the Agreement in order to provide
for expedited production.
NOW THEREFORE, the parties agree to amend the Agreement as follows:
Article 3, Effective Date and Term: Delete "31 December 2000" and replace with
"31 December 2001."
Article 13, Notices: Delete "▇▇. ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Phone ▇▇▇-▇▇▇-▇▇▇▇" and
replace with "▇▇. ▇▇▇ ▇. ▇▇▇▇▇▇, Phone ▇▇▇-▇▇▇-▇▇▇▇."
Article 15, Intellectual Property, Section 15.3 Marking: Delete "▇▇. ▇▇▇▇▇▇▇ ▇.
▇▇▇▇▇▇▇▇" and replace with "▇▇. ▇▇▇ ▇. ▇▇▇▇▇▇."
Exhibit IB, Price and Minimum Quantities, as revised through Revision 4 is
deleted and replaced with Exhibit IB - Revision 5 dated November 1, 2000 (Copy
attached).
Add the following exhibit: Exhibit 1D, Time and Material (T&M) Labor Rates,
Calendar Year 2001.
The above changes constitute Contract Change Notice No.5 to the Agreement.
Except as expressly provided hereinabove all other terms and conditions of the
Agreement shall apply herein and remain in full force and effect as previously
agreed to between Buyer and TRW. In the event of any conflict between the terms
of this Amendment and those of the Agreement, the terms of this Amendment will
be deemed to have superseded those of the Agreement and exclusively will govern
the matter in question.
Buyer: TRW Inc.
Space and Electronics Group
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ By: /s/ ▇▇▇ ▇▇▇▇
------------------------------- -------------------------------
Name: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ Name: ▇▇▇ ▇▇▇▇
Title: Chief Operating Officer Title: Vice President & Deputy
Stanford Microdevices, Inc. General Manager TRW Ventures
Date: Date:
TRW PROPRIETARY
2
TRW PROPRIETARY
EXHIBIT 1B - REVISION 5
PRICE, MINIMUM QUANTITIES, DELIVERY SCHEDULE AND SITE
CALENDAR YEAR 2001
A. PRICE
1. 3" GaAs HBT Wafers - The provisions for the Minimum Quantity Purchase
(MQP) price are stipulated in Paragraph "B" below.
QTY MQP Price* Reversion Price*
--- ---------- ----------------
[***] [***] [***]
Price quoted above strictly apply to wafers purchased within the same
calendar year.
* Prices for TRW & SMDI Designs are the same.
** TRW Design consists of Darlington Amplifiers - Part Numbers: DAMXX,
DAPXX, PAD1;
SDMI Design consists of Part Numbers: PAD2, SMDXX and circuits for
the following products Stanford Microdevices SXT -- 1,2,3, SXL --
1,2,3 and SXA -- 1,2,3.
2. Time & Material (T&M) Engineering Support for Failure Analysis and
Device Troubleshooting, Mask Layouts, and related support, shall be
billed per the hourly rates per Exhibit 1D. Material and Other Direct
Costs (ODC) will be billed as incurred.
3. Accelerated Lot Option(1)
Deliverable Standard Process Price
----------- ----------------------
[***] [***]
Note 1) Only one (1) order for an Accelerated lot can be accepted for processing
at any time from all Stanford Microdevices contracts.
Note 2) Accelerated lot pricing is only valid if wafers are shipped to Buyer not
later than 45 days from receipt of order or lot start, whichever is later. TRW
will deliver a minimum of [***] wafers for a [***] wafer lot start. For a lot
that is designated as Accelerated after it has already started fabrication, the
shipment date will be determined as follows; 1+(1-EV) x 45 days from the time
the lot is designated Accelerated at TRW. EV equals the Earned Value or percent
complete of the in-process lot.
Note 3) If the shipment date to Stanford Microdevices is 46 days or later (or as
defined above for a lot in process) from receipt of order or lot start, option
price shall not be charged. The option is available when ordered in conjunction
with a production lot or for a lot in process.
4. Non-recurring costs associated with the upgrading of masksets shall be
the responsibility of SMDI.
*Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
1
3
TRW PROPRIETARY
EXHIBIT 1B - REVISION 5 (CONTINUED)
PRICE, MINIMUM QUANTITIES, DELIVERY SCHEDULE AND SITE
CALENDAR YEAR 2001
B. MINIMUM QUANTITIES DURING CALENDAR YEAR 2001
1) The minimum purchase quantity of HBT wafers for Calendar Year 2001
shall be:
Product Number of Wafers
------- ----------------
3" GaAs Process [***]
Wafers
If Buyer fails to purchase the minimum quantity, the price reverts to
the reversion price of [***] per wafer. Prices are valid and purchase
order quantities shall be measured by all orders received by TRW,
starting 1 January 2001.
C. SITE
Stanford Microdevices
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
D. DELIVERY SCHEDULE
Wafers will be shipped to Buyer not later than ten (10) weeks from the
first Monday after receipt of valid order.
E. LIFE TIME BUY OPTION
TRW has previously agreed to provide up to [***] wafers to Buyer. As of
31 December 2000 TRW will have shipped approximately shipped [***]
wafers to Buyer. TRW will notify Buyer when it plans to obsolete or
upgrade its HBT MMIC fabrications process. TRW will provide this
notification to Buyer at least six months prior to the time that TRW
will no longer accept orders for said Product. A delivery schedule will
be negotiated at the time the option is exercised, prior to TRW's
initiating performance of the option.
*Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
2
4
TRW PROPRIETARY
Stanford Microdevices, Inc. Sales Agreement No. 1A551
E. LIFE TIME BUY OPTION
TRW has previously agreed to provide up to [***] wafers to Buyer. As of 31
December 2000 TRW will have shipped approximately shipped [***] wafers to
Buyer. TRW will notify Buyer when it plans to obsolete or upgrade its HBT
MMIC fabrication process. TRW will provide this notification to Buyer at
least six months prior to the time that TRW will no longer accept orders
for said Product. A delivery schedule will be negotiated at the time the
option is exercised, prior to TRW's initiating performance of the option.
*Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
3
5
TRW PROPRIETARY
Stanford Microdevices, Inc. Sales Agreement No. 1A551
Amendment No. 5/Revision 5
EXHIBIT 1D
TIME AND MATERIAL (T&M) LABOR RATES
CALENDAR YEAR 2001
ACCT. CODE LABOR CATEGORY HOURLY RATES
---------- -------------- ------------
[***] [***] [***]
[***] [***] [***]
[***] [***] [***]
[***] [***] [***]
[***] [***] [***]
[***] [***] [***]
[***] [***] [***]
[***] [***] [***]
[***] [***] [***]
[***] [***] [***]
[***] [***] [***]
[***] [***] [***]
[***] [***] [***]
Notes: 1) [***]
2) [***]
*Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
4