************************************************************************************ THIS QUOTATION IS CONFIDENTIAL AND INTENDED SOLELY FOR THE REVIEW OF THE RECIPIENT IDENTIFIED BELOW. IF YOU ARE NOT THE IDENTIFIED RECIPIENT, PLEASE ENSURE THAT THIS COMMUNICATION REMAINS CONFIDENTIAL AND PROMPTLY RELAY IT TO THE INTENDED RECIPIENT. FOR ANY QUESTIONS, PLEASE CALL 1-408-432-8838. THANK YOU. ************************************************************************************ FSM 128NT 200MM (REFURBISHED) SEMI-AUTOMATIC FILM STRESS AND WAFER BOW MAPPING SYSTEM FOR WAFERS UP TO 200MM DIAMETER, MANUAL LOADING (For illustration only. Actual look and components may vary) Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 1 of 17 BUDGETARY QUOTATION (Pricing is quoted as per FSM standard configuration, Terms and conditions. The price may vary as the terms and conditions of this quotation may change as a result of customer requirements on equipment purchase specification, RFQ, Fab and EHS requirements and other factors.) NORTH CAROLINA STATE UNIVERSITY Raleigh, NC 27695, United States https://www.ncsu.edu/ January 06, 2023 Ref: Q230106NS1-P1 FRONTIER SEMICONDUCTOR US Sales Department: Project Manager USA: Bo Sun Mobile: (+1) 408-607-3877 bos@frontiersemi.com Customer Application: Attn: Philip Barletta pbarlet@ncsu.edu 919-513-1976 Directory of Operations NC State Nanofabrication Facility Affiliate Faculty Sales Manager: Nathan Greene nathang@frontiersemi.com Sales Admin: Norman Sanga normans@frontiersemi.com Subject: FSM 128NT 200MM (REFURBISHED) - SEMI-AUTOMATIC FILM STRESS AND WAFER BOW MAPPING SYSTEM FOR WAFERS UP TO 200MM DIAMETER, MANUAL LOADING Dear Philip, Frontier Semiconductor is pleased to present you with the following proposal. All Exhibits (I, II, A, B, C and D) attached hereto shall be incorporated herein by reference. I. SYSTEM ITEM DESCRIPTION 1.0 FSM 128NT 200MM (REFURBISHED) - SEMI-AUTOMATIC FILM STRESS AND WAFER BOW MAPPING SYSTEM FOR WAFERS UP TO 200MM DIAMETER, MANUAL LOADING (see UNIT PRICE (USD) US$54,000.00 notes A and B) Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 2 of 17 A. Application The FSM 128NT 200MM (REFURBISHED) - SEMI-AUTOMATIC FILM STRESS AND WAFER BOW MAPPING SYSTEM Measures film stress and wafer bow height of SEMI standard wafers up to 200MM diameter. (See note B) B. Sample Up to 200mm SEMI standard wafers (See note B) C. Features: a. 3D film stress and wafer bow mapping, manual loading b. Motorized rotational stage for automatic mapping. c. Accepts up to 200mm diameter wafer. d. Capable of measuring bowed wafers from 1um to 200um bow height for 200mm wafer. e. High lateral point density: ≥7,760 pts./194 mm scan f. Capable of measuring patterned wafers. g. Patented automatic dual laser switching. h. The refurbishing includes updating the old operating system from Windows XP to Windows 10 operating system i. Software license for stress, radius, and wafer bow j. Export of data to Excel k. Export of tables, graphs, and maps as jpeg files. * This refurbished machine will update the computer and power supply to provide the Windows 10 operating system to replace the obsolete Windows XP as well as providing full testing for all functionality before release of this machine to customer with (1) year warranty, FSM will provide a (1) year warranty to ensure customer satisfaction. System comprises of: ❖ One stress measurement unit. ❖ FSM control module with Intel Core i5 or later, 1TB or greater storage capacity, and 4GB of RAM, USB ports, 2x RJ-45 Ethernet connections ❖ >=21” Flat Panel Color Monitor, DVD R/W Drive ❖ 104 keyboard and mouse TOTAL FOR ITEM (1.0): US$54,000.00 II. SERVICE 2.0 INSTALLATION, CALIBRATION AND ON-SITE OPERATOR TRAINING, TRAVEL & HOTEL BY 1 FSM ENGINEER (3 days) In the event that the customer wants additional time for installation or training, customer shall pay FSM for such services in accordance with FSM’s prevailing rates and policies as set forth in Exhibit I-Billing Rates & Exhibit II-Billing Policies, which are attached hereto. TOTAL FOR ITEM (2.0): TOTAL FOR ITEMS (1.0-2.0): (ONE TIME SPECIAL DISCOUNT): US$8,000.00 US$62,000.00 (US$2,000.00) TOTAL PRICE FOR ITEMS (1.0-2.0): US$60,000.00 Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL US$8,000.00 Page 3 of 17 Note A: Please refer to Exhibit A for Detailed Configuration Note B: Intended use based on sample report issued prior to purchase order. Tool qualification is based on samples tested and qualified prior to issuance of PO. Same samples will be used for tool demonstration, source inspection and onsite installation and acceptance. Data acquired at the demo shall be used as the benchmark for acceptance at the source inspection and factory acceptance after installation. Other samples, engineering specials, and software customization are considered application development and will be invoiced according to Exhibit I Billing Rates & Exhibit II-Billing Policies, which are attached hereto. III. OPTIONS FSM recommends the following options to be purchased with the system. Items # 3 – 4 are required for calibration purposes. 3.0 4.0 200MM FLAT CALIBRATION MIRROR (Required for calibration) (See Exhibit B item 1) 100MM CURVED CALIBRATION MIRROR, 20 M RADIUS (Required for calibration) (See Exhibit B item 2) Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL US$8,712.00 US$3,400.00 Page 4 of 17 TERMS & CONDITIONS NOTES: 1. This quotation is merely an invitation to offer. All items herein are subject to change pending submission of Buyer’s purchase order, specification (if applicable) and agreement by FSM and Buyer to the terms and condition of purchase. Please provide FSM with the terms and conditions of the proposed purchase agreement for our review as soon as possible. FSM will provide Buyer with the final quotation number, reflecting the final agreed upon price with negotiated specifications, terms, and conditions so that Buyer may incorporate by reference the same on the purchase order. 2. The issuance of Buyer’s purchase order is expressly limited to the terms and conditions contained in this quotation. Any additional, inconsistent or conflicting term or condition shall be inapplicable to this purchase unless specifically agreed to in a writing signed by an authorized representative of FSM. 3. No Reverse Engineering: Buyer and all of its employees, agents, contractors, etc., shall not attempt, in any manner, to reverse engineer, disassemble, or decompile FSM’s products or software or any parts thereof. The specifications of FSM’s products, including FSM’s hardware and software, are FSM proprietary and confidential information to which all terms pertaining to proprietary or confidential information shall apply. Buyer accepts all terms and conditions in the FSM standard software license agreement. 4. Please address all purchase orders to: Frontier Semiconductor 165 Topaz St. Milpitas, California 95035, USA 1-408-432-8838 (P) 1-408-232-1115 (F) All communication should be directed to: Email: geraldinea@frontiersemi.com , fsmlog@frontiersemi.com , nathang@frontiersemi.com and normans@frontiersemi.com 5. Payment Terms: T/T Net 30 days, 95% with order and shipment and 5% upon acceptance Late payments after acceptance sign-off shall accrue interest at the monthly rate of 1% on the outstanding balance. FSM will retain ownership of the tool being shipped to the buyer. As soon as full payment is completed by the buyer, FSM tool ownership will then be transferred to the buyer, subject to the terms and conditions of the licensing right of the software license agreement contained therein. In the event of non-payment, FSM may exercise the option to reclaim the tool from the buyer. 6. Delivery: 8~12 weeks after the receipt of PO. 7. Ex-works: FSM, Milpitas, California. 8. Cancellation: The order is customized and application-specific to the customer, therefore the P.O. placed with FSM being a customized tool is irrevocable and non-cancellable. Once cancellation is placed 100% payment of the P.O value is due. Warranty: Twelve (12) Months against manufacturing defects upon acceptance. However, if acceptance is not signed even though FSM meets all specifications, then acceptance of the tool is deemed given 2 months from the date of ex-factory if the FSM tool meets all the customer’s criteria. Warranty does not include consumables. Spare parts and consumables list will be provided at the time of P.O. received. 9. 10. e.g., FSM ship the tool on January 1, we finish the installation on January 15 (2 Weeks), then the warranty will start on January 16. However, if the customer fails to sign the acceptance (FAT) when there is the completion of installation, then the acceptance is deemed given two months from the date of ex- factory. The warranty will automatically start on March 1. Misuse and any unauthorized changes and adjustments will void the warranty. Warranty does not include consumables. The sale of this FSM tool does not include the Application Development Program. In the event that the samples Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 5 of 17 11. 12. 13. 14. 15. 16. submitted after delivery of the tool is different from the samples submitted prior to issuance of the PO, such additional samples will be a part of the Application Development Program, where FSM shall quote separately if customer is interested to have FSM participate in its R and D program of further application development. Source Inspection must be performed by Buyer, at its cost, at FSM’s facility prior to the shipping of the tool; otherwise, the Source Inspection is deemed waived by Buyer. In order to qualify the tool’s performance, FSM will use their standard procedure. Typically, our acceptance tests are carried out on traceable calibration mirrors and representative wafers. If the buyer wants to include his own samples for the acceptance tests, he must submit representative test samples for all intended usages of the tool prior to issuance of the PO. The set of said representative samples should cover the entire scope of the intended use of the tool and the entire scope of the intended applications for the tool. Tool qualification is based on samples tested as presented in the demo report. Same samples will be used for tool demonstration, source inspection and onsite installation and acceptance. Other samples are considered as application development and will be quoted accordingly. This quotation is valid for only 30 days from the date on the quotation and is subject to change after 30 days have passed. Buyer should not rely on quotations that are older than 30 days for its budgeting of future purchases since the prices and specifications of the subject matter may vary. Purchase order must reference FSM’s final quote number for the latest system configuration and specifications, demo report, deliverables, acceptance criteria and warranty support plan. Customer is responsible for all local and state taxes, payroll tax as well as any other tax which may be applied by the government subject to any regulatory approvals. Any sales, use, excise, or similar tax or any tax payable by Seller which is or may be imposed by any taxing authority upon the sale or delivery of goods covered by this order, or any increase in rate of any such tax not in force or may be in force , shall be added to the sales price by Buyer for its reimbursement or collection to the respective tax authorizes ; shall be the Buyer’s sole responsibility and if not collected at the time of payment of sales, Buyer will hold Seller harmless as Buyer is the collection agency of taxes for the government. All sales price in the quotation is net to the Seller. In the event of a cyber-attack, the customer shall indemnify FSM for all losses. 17. FSM Terms and Conditions apply to any contract resulting from this quotation. 18. FSM is committed to complying with all U.S Government export control laws and regulations which regulate the export and re-export of commodities, software, and technology. No transactions are to be conducted by or on behalf of the Company contrary to these laws. From: FRONTIER SEMICONDUCTOR By: Norman Sanga Norman Sanga, FSM Sales Admin List of Exhibits: I. II. III. IV. V. VI. Exhibit A – DETAILED CONFIGURATION – FSM 128NT 200MM (REFURBISHED) - SEMI-AUTOMATIC FILM STRESS AND WAFER BOW MAPPING SYSTEM FOR WAFERS UP TO 200MM DIAMETER, MANUAL LOADING Exhibit B – DETAILED CONFIGURATION FOR OPTIONAL ITEMS 3.0-4.0 - 200MM FLAT CALIBRATION MIRROR - 100MM CURVED CALIBRATION MIRROR, 20 M RADIUS Exhibit C – FACILITY REQUIREMENTS Exhibit D – FSM SOFTWARE LICENSE AGREEMENT Exhibit I - Billing Rates Exhibit II - Billing Policies Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 6 of 17 EXHIBIT A DETAILED CONFIGURATION FSM 128NT 200MM (REFURBISHED) - SEMI-AUTOMATIC FILM STRESS AND WAFER BOW MAPPING SYSTEM FOR WAFERS UP TO 200MM DIAMETER, MANUAL LOADING 1, 2 & 3 1) APPLICATION FSM 128NT 200MM (REFURBISHED) - SEMI-AUTOMATIC FILM STRESS AND WAFER BOW MAPPING SYSTEM FOR WAFERS UP TO 200MM DIAMETER, MANUAL LOADING 2) SAMPLE Up to 200mm SEMI standard wafers (See note 2, 3) 3) GENERAL SYSTEM DESCRIPTION a) The system is a semi-automatic room temperature stress measurement tool. Film stress is determined by measuring the wafer curvature before and after film deposition on silicon wafers. Features include: i) ii) iii) iv) v) Manual loading of wafers on to sample stage. Capable of accepting up to 200mm diameter wafer. Motorized wafer stage to enable easy wafer loading and retrieval. Motorized rotational stage for mapping. High lateral point density: >7,760 pts./194 mm scan; Data acquisition: 40 pts / mm (overlapping) b) Safety Feature An emergency shut off (EMO) circuit is provided to totally de-energize the equipment in the event of an emergency situation – EMO circuits are supplemented by a control circuit which must be manually activated to re-energize the equipment. EMO buttons are of mushroom style, one inch in diameter, red in color, and with a protective collar to prevent accidental activation. 4) SYSTEM CONFIGURATION The system includes: a) One stress measurement unit. b) One sample stage capable of 360-degree rotation. c) FSM control module with Intel Core i5 or later of greater than or equal to 1.0 TB of data storage capacity, 4 GB of RAM, 4 USB ports min., 2RJ-45 Ethernet connections, and DVD R/W drive. d) The system includes a >=21” Flat Screen color monitor, 104 keyboard and mouse e) All System software license is Windows 10 based, and the most current version offered by FSM. Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 7 of 17 5) MEASUREMENTS AND FUNCTIONS a) The system is able to determine film stress (either compressive or tensile) from 1 MPa to 4GPa provided bow height change is >1um and < 200um. b) System is capable of performing single scan line or multi scan lines for stress or wafer bow mapping. c) Film stress measurement data and wafer bow results can be displayed and printed in tabular formats. d) Stress and wafer bow maps can be exported as jpeg files. e) The pre- and post-stress wafers can be tracked by wafer number or wafer ID. 6) STRESS GAUGE SPECIFICATIONS DESCRIPTION SPECIFICATIONS Stress range 1 MPa to 4GPa (1 x 107 to 4 x 1010 dynes/cm2)* Wafer bow sensitivity (Provided the wafer curvature change before and after processing is greater than 1 micron (bow height) and less than 200 microns for a 194 mm scan line.) 1-micron bow height change. P doped Si<100> Sample size (diam. ⌀) Up to 200mm Scan range up to 194mm for 200mm wafer with 3mm edge exclusion Scan line Single scan line at any wafer orientation Mapping Multiple scan lines for wafer maps up to 32-line scans, 6 lines recommended. >7,760 pts./194 mm scan (40 points/mm), overlapping. Data points Static Stress Repeatability 1% (1 sigma) using a 5000Å Tungsten CVD deposited film, ambient, repeat 30X’s. *Note: FSM128 measures wafer bow height and radius of curvature. Stress measurement range is calculated based on Stoney equation using radius of curvature changes before and after processing. 7) WAFER HANDLING a) Manual loading b) Wafers are contacted, held, and handled on the backside only. No metal contact with the wafer c) The wafers are supported by a 3 support pins on sample stage Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 8 of 17 8) WARRANTY 1 Twelve (12) Months against manufacturing defects upon acceptance. However, if acceptance is not signed even though FSM meets all specifications, then acceptance of the tool is deemed given 2 months from the date of ex-factory if the FSM tool meets all the customer’s criteria. Warranty does not include consumables. Spare parts and consumables list will be provided at the time of P.O. received. e.g., FSM ship the tool on January 1, we finish the installation on January 15 (2 Weeks), then the warranty will start on January 16. However, if the customer fails to sign the acceptance (FAT) when there is the completion of installation, then the acceptance is deemed given two months from the date of ex- factory. The warranty will automatically start on March 1. Misuse and any unauthorized changes and adjustments will void the warranty. Warranty does not include consumables. 9) NOTES: Please Note: 1 Warranty does not include consumables. Spare parts and consumables list will be provided at the time of P.O. received. FSM reserves the right to select any spare part for warranty replacement and after warranty support. 2 All items in this proposal are subject to change based on buyer’s input and FSM’s approval. In the event that buyer accepts this proposal, all specifications, terms and conditions will be incorporated in the purchase order. 3 All representative wafers have to be tested and pre-qualified by FSM engineers at FSM facilities for acceptance prior to issuance of PO. The same representative samples will be used for tool evaluation, source inspection and onsite installation and acceptance. Demo report from the initial tool evaluation will be used as the acceptance criteria. Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 9 of 17 EXHIBIT B DETAILED CONFIGURATION FOR OPTIONAL ITEMS 3.0-4.0 1. 200MM FLAT CALIBRATION MIRROR (Required for calibration) 2. 100MM CURVED CALIBRATION MIRROR, 20 M RADIUS (Required for calibration) 3. WARRANTY Twelve (12) Months against manufacturing defects upon acceptance. However, if acceptance is not signed even though FSM meets all specifications, then acceptance of the tool is deemed given 2 months from the date of ex-factory if the FSM tool meets all the customer’s criteria. Warranty does not include consumables. Spare parts and consumables list will be provided at the time of P.O. received. e.g., FSM ship the tool on January 1, we finish the installation on January 15 (2 Weeks), then the warranty will start on January 16. However, if the customer fails to sign the acceptance (FAT) when there is the completion of installation, then the acceptance is deemed given two months from the date of ex- factory. The warranty will automatically start on March 1. Misuse and any unauthorized changes and adjustments will void the warranty. Warranty does not include consumables. Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 10 of 17 EXHIBIT C FACILITY REQUIREMENTS a) Power: 110-220 VAC (auto-switching), 50-60Hz, 5A b) Environment has to be free of noise and vibration. Vibration of support table on which system is installed has to meet: 1. Z-axis acceleration < 0.0002 g’s, 2. Z-axis speed < 0.5 mils/s (13 um/s), 3. Z-axis displacement < 1 mil (25.4 um). Suitable Vibration Meter Maker: BALMAC, INC., Model: 300 NOTES: Please Note: 1 Warranty does not include consumables. Spare parts and consumables list will be provided at the time of P.O. received. FSM reserves the right to select any spare part for warranty replacement and after warranty support. 2 All items in this proposal are subject to change based on buyer’s input and FSM’s approval. In the event that buyer accepts this proposal, all specifications, terms and conditions will be incorporated in the purchase order. 3 All representative wafers have to be tested and pre-qualified by FSM engineers at FSM facilities for acceptance prior to issuance of PO. The same representative samples will be used for tool evaluation, source inspection and onsite installation and acceptance. Demo report from the initial tool evaluation will be used as the acceptance criteria. Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 11 of 17 EXHIBIT I BILLING RATES EMPLOYEE POSITION HOURLY RATE $ 250.00 FIELD SERVICE ENGINEER SERVICES $ 450.00 • Minimum 4 Hours per service call for area within Santa Clara County, CA • Minimum 8 Hours per service call for area outside of Santa Clara County, CA RESEARCH AND DEVELOPMENT DEPARTMENT APPLICATION, CONSULTATION & TRAINING SERVICES Sr. R&D Engineer $ 450.00 - $ 500.00 SOFTWARE / PROGRAMMING DEPARTMENT Sr. Programmer $ 350.00 OTHERS $ 450.00 Remote Access Time (cover Phone Support and Email Consultancy Services) Travel Time $ 250.00 EXPENSES TO BE REIMBURSED Travel Costs (Hotel, Airfare, Rental Car, etc.) As incurred “Any work done before or after normal business hours or on weekends for client convenience is subject to 1 ½ times our normal hourly rates shown above. Any work done on a holiday is subject to 2 times our normal hourly rates shown above” Signature below confirms that I have read and understand that these are Frontier Semiconductor’s (“FSM”) Standard Support rates and that they are subject to change. Company Q230106NS1-P1_128NT 200mm.doc Name Signature CONFIDENTIAL Date Page 12 of 17 EXHIBIT II BILLING POLICIES We have summarized Frontier Semiconductor’s (“FSM”) billing procedures below and our expectations of clients. Established FSM clients, with acceptable credit documents completed, are extended Terms at NET 30 days. A later charge of 1½ % will be assessed on any unpaid balance over 30 days. All orders and large systems require a deposit with the balance due COD or PreApproved Lease Agreement with deposit. You will receive two billing documents from FSM: 1. Invoices for Equipment, Software and Supplies. Invoiced at Purchase 2. Invoices for Labor Services (Time and Billing). Invoiced as Services are Rendered Equipment and supply invoices are generated at time of purchase and delivery and are due and payable in full at that time. They include a product description, quantity, amount, extension and serial number is applicable. Amounts listed on product and system invoices are for merchandise invoiced only. Delivery, installation, set-up, training and support will be invoiced separately via time & billing. Time and billing invoices represent services performed by FSM employees through the billing period. A new invoice is generated for each specific project (General, Programming, etc.) Each invoice will include the date of service, individual performing the work, service description, additional comments, number of hours, hourly rate, and total amount billed for all work performed. These invoices will include billings for travel time, on-site support and training, phone support, modem support, pickup and delivery, installation, set-up, consultation, research, duplication of problems, custom programming, system design and system testing. These charges are invoiced on a semi-monthly basis. Monthly Statements are generated for accounts with a non-zero balance. The statement provides a list of all invoices open during the month. The bottom section of the statement provides an account aging. In addition, late charges for invoices beyond their terms will be assessed on the statement. NEW SYSTEMS BILLING When implementing a new system, we typically provide a quotation. The quotation includes equipment, supplies and estimated hours for installation, training, support, and customized programming. The quotation provides an estimate for the expected cost of the implementation of your system. In addition, information is provided for leasing or financing costs. Training and support should be included in your financing to amortize the full system cost over the contract period. When FSM invoices the system, only the equipment delivered is included. You are billed for labor services through semi-monthly time & billing invoices. Installation supplies and other products will be invoiced upon delivery. As an example, you may receive a quotation for a $50,000 system and be invoiced for $38,000 worth of equipment and tax and then be billed for services rendered in the installation, implementation, training and support of that system as incurred. Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 13 of 17 WORK ORDERS / PURCHASE ORDERS Work orders are a method that FSM uses to monitor employee workloads and ensure customer satisfaction by tracking client requests through completion. No employee will perform work on behalf of a client without a Purchase Order. The work order must be approved and signed by the client and will provide the billing detail for services rendered. Additional client requests will require additional Purchase Orders. The employee who receives the client request or problem will receive a Purchase Order from the client and issue a written work order. The written work order is then given to the Field Service Engineer responsible for its completion. Our client or their representative must sign the completed work order for on-site work. This work order states the service that was performed, the amount of time it took to complete the work, and any additional work recommended. Note: Additional client requests not included in the original Purchase Order will require additional Purchase Orders. ON-SITE SUPPORT AND TRAVEL TIME On-site support is available when we are unable to rectify a problem via phone or modem. Travel time will be billed at $250 per hour, round trip from our office to your office. This also includes pickups and deliveries. Minimum charge for on-site service billing is 4 hours plus 0.5 hours (30 min.) travel time. MODEM OR PHONE SUPPORT When support is being done via phone and modem, billing will be adjusted to account for both costs. All time to research, duplicate, test or respond to the question is chargeable. Multiple calls regarding a similar topic may be combined into one charge. Minimum charge for modem and phone support is .30 hours (18 min.) plus modem/phone charges. Excessive phone and modem charges will be billed at $250 per hour in addition to support charges. CLIENT SCHEDULING Clients are scheduled for service and support calls based upon the following classifications: 1. 2. 3. 4. 5. Systems down New committed installations / training System upgrades or enhancements Client Meetings re: system upgrades or enhancements Sales meetings or other appointments Clients will be provided with an estimated time to expect the service call. It is necessary to limit our time predictions to AM or PM due to the nature of on-site service calls. We will attempt to contact you if we will be later than the expected time. We will reschedule you for the next available appointment time. If your appointment gets delayed or cancelled due to our above scheduling policy, please accept our apologies. We attempt to service the clients that are most affected by their system problems, which may cause us to rearrange our appointments. However, if your system is completely down, you will be provided with the most prompt service available. Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 14 of 17 BILLING RATES Our billing rates are based upon the employee providing the service. These rates will vary to the skills of the employee. We attempt to provide you with an employee trained to correct the problems as described by you. Due to unforeseen problems, our employees may need to contact the office or manufacturer support staff for additional assistance. On such occasions you may be billed for both employees. Any work done before or after normal business hours or on weekends for client convenience is subject to 1½ times our normal hourly rate. Any work done on a holiday is subject to 2 times our normal hourly rate. “NO-HIRE” CLAUSE Client also agrees that in order to prevent disruptive practices, which may harm the business of FSM during the course of our services under this agreement, for a period of one year thereafter, no person acting on behalf of Client will solicit or attempt to hire any employee or consultant working for our firm. Client and FSM agree that if Client solicits or attempts to hire any employee or consultant working for our firm, because the damages to our firm would be difficult and impracticable to ascertain, therefore the equivalent of the employee’s one-year compensation, shall constitute a fair and reasonable estimate of those damages. Client waives any right to claim that such amount is not fair and reasonable. FSM agrees that the recovery of such amount shall constitute its sole right, remedy and recourse against Client for the violation of the prohibitions contained in this paragraph. PRODUCT WARRANTY STATEMENT FSM warrants its products against defects in materials and workmanship for a specific period of time. If you have a question regarding the warranty items or period on a product, please review the product warranty statement or contact our sales staff for additional warranty information. In the event it becomes necessary to obtain warranty service, products must be returned to a facility designated by FSM. FSM does not extend a product warranty, but may act as an agent for the manufacturer. Any defective part supplied by FSM may be returned to FSM with an RMA number. The authorized return should be insured, freight prepaid, and securely packaged for shipment to FSM. FSM will replace or repair the part under the terms of the manufacturer’s warranty. FSM will charge for labor associated with diagnostic evaluation of the product, if it is determined to be defective. However, if the product is determined to be in proper working order, or the damage is not covered under the manufacturer’s warranty, then FSM will invoice you for the appropriate labor or repair. The client may also elect to have FSM diagnose the problem on-site and replace the part as available. While the part will be replaced or repaired under manufacturer’s warranty, FSM will invoice for our service, including travel, diagnosis and replacement labor. During the first 90 days of a full system installation that the client was invoiced for system setup, testing and installation, FSM may extend the manufacturer’s warranty to include on-site service. EXCLUSIONS The above warranty shall not apply to defects resulting from improper or inadequate maintenance or backup by the customer, customer supplied software, hardware or interfacing, unauthorized modifications or misuse, operation outside of the environmental specifications for the product or improper site preparation and maintenance. Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 15 of 17 IN NO EVENT WILL FSM BE LIABLE FOR DAMAGES, LOST REVENUE, LOST WAGES, LOST SAVINGS OR ANY OTHER DIRECT, INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING FROM THE PURCHASE, USE, OR INABILITY TO USE A SOLD PRODUCT, EVEN IF FSM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT WILL FSM BE LIABLE FOR ANY DAMAGES RESULTING FROM CORRUPTION OR LOSS OF COMPUTER PROGRAMS OR DATA DUE TO DEFECTIVE PRODUCTS. IN NO EVENT SHALL FSM’S LIABILITY FOR ANY CLAIM ARISING OUT OF ITS RELATIONSHIP WITH THE CLIENT EXCEED THE AMOUNT PAID TO FSM BY SUCH CLIENT. Warranty work does not include a change to the original work specifications of requirements or additional work not originally charged to the client. There will be a charge for all new work or work related to recovering lost or corrupted data. Products that worked together in the past may now be incompatible, due to added features or upgrades. When adding a feature or upgrading a product, we will attempt to determine that the system is operating correctly. However, prior to signing the work order completion, please test normal work functions. There will be a charge if additional service calls are required. FSM MAKES NO OTHER WARRANTY, EITHER EXPRESSED OR IMPLIED, WITH RESPECT TO ANY PRODUCT SOLD, OTHER THAN THE WARRANTY GIVEN BY THE MANUFACTURER. FSM SPECIFICALLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AS TO ANY PRODUCTS OR SERVICES PROVIDED TO CLIENT. IN SUMMARY In the event of a question or concern regarding a product, invoice or statement, please contact us immediately. If you wait 30 days before contacting us, the exact nature and purpose of services or equipment rendered may be more difficult to determine. FSM is dedicated to serving the needs of each of our clients, by providing systems and consulting services and support. We shall try very hard to keep you a satisfied customer. We look forward to serving you in every way possible. We would like to take this opportunity to express our sincere appreciation for choosing FSM for your needs. Please do not hesitate to contact us if we may be of assistance with our invoicing and billing procedures or if we can clarify any issues or concerns regarding the services we provide. Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 16 of 17 I have read and understood FSM’s Billing Policies. I agree to pay for services and/or products received. Signature Print Name/Title Company Date After initialing all pages and signing above acknowledgement, please fax to (408) 2321115 or mail a copy back to: Frontier Semiconductor 165 Topaz St., Milpitas, CA 95035 Tel: (408) 432-8838 Fax: (408) 232-1115 Q230106NS1-P1_128NT 200mm.doc CONFIDENTIAL Page 17 of 17