EX-4.16 14 u98916exv4w16.txt AGMT BETWEEN SONY ERICSSON & NAM TAI JAN 10 2003 EXHIBIT 4.16 Page 1 of 7 10th January 2003 SPECIFIC SERVICE AGREEMENT BETWEEN SONY ERICSSON MOBILE COMMUNICATIONS AB (HEREINAFTER REFERRED TO AS "SONY ERICSSON") AND NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS Ltd. (HEREINAFTER REFERRED TO AS THE "SUPPLIER") REGARDING PROJECT "FILIP" Page 2 of 7 10th January 2003 TABLE OF CONTENTS 1. TERMINOLOGY INTEGRATED PART........................................ 1 2. SCOPE OF THE SSA................................................... 2 3. FORECASTS AND ROADMAPS............................................. 2 4. COMMUNICATION AND CONTACT PERSONS.................................. 2 5. INDUSTRIALISATION SERVICES......................................... 2 6. INDUSTRIALISATION-TEST APPLICATIONS................................ 3 7. PROTOTYPES......................................................... 3 8. SPECIFICATION...................................................... 3 9. DOCUMENTATION...................................................... 3 10. PRICING AND TERMS OF PAYMENT..................................... 3 11. TERMS OF DELIVERY................................................ 4 12. PACKING AND LABELLING............................................ 4 13. QUALITY.......................................................... 4 14. PURCHASE OF COMPONENTS........................................... 4 15. TERM OF AGREEMENT AND TERMINATION................................ 5
ENCLOSURES: Enclosure 2.3 Project Plan, NDU/P-02:1321 Enclosure 10.1 Prices and Price model Enclosure 14.1 Purchase of components Enclosure 14.2 Liability and Forecast model Page 1 of 7 10th January 2003 SPECIFIC SERVICE AGREEMENT made as of 10th January 2003, by and between Sony Ericsson Mobile Communications AB, Org no 556615-6658, a limited liability company duly incorporated and existing under the laws of Sweden, with its legal address at Nya Vattentornet, S-221 88 Lund, Sweden, hereinafter referred to as "Sony Ericsson", and NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS Ltd, with organisation number 129666, a corporation duly incorporated and existing under the laws of Hong Kong and having its registered office at 15th Floor, China Merchants Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong (hereinafter referred to as the "Supplier"). (hereinafter referred to as the "Supplier"). WHEREAS: 1. Ericsson and Supplier have entered into the General Service and Purchase Agreement, GSPA, dated 15th February 2001 among other agreements, The GSPA has been duly assigned to Sony Ericsson Mobile Communications AB during 2002. 2. The GSPA contains the general terms and conditions for the performance of Product Supply to Sony Ericsson, from Supplier, 3. It is intended that the GSPA will be supplemented by one (1) or more SSA's setting out the specific provisions relating to the performance of Product Supply, and 4. The Supplier has explained that it is willing and fully able to perform the Product Supply on behalf of Sony Ericsson for delivery of high quality Products, under the terms and conditions set out in this SSA and the GSPA. NOW THEREFORE, in consideration of the mutual obligations herein contained, the Parties agree as follows: 1. TERMINOLOGY, INTEGRATED PART The GSPA shall be an integrated part of this SSA and, accordingly, all terms and conditions in the GSPA shall also apply to this SSA. Capitalised terms contained herein shall have the meanings assigned to them below or as ascribed to them in the GSPA unless otherwise defined in the context or document where it is used. "AGREEMENT", means this Specific Service Agreement. "GSPA", means the General Service and Purchase Agreement referred to in the "Whereas"-section above entered into between the Parties. "PRODUCT", means the Camera Filip, developed by C Technologies AB on behalf of Sony Ericsson and as further specified in this Agreement. Page 2 of 7 10th January 2003 "PA", means the Purchase Agreement separately signed covering the Product. The PA will be the new name of the SPA mentioned in the GSPA. "SSA", means this Specific Service Agreement. 2. SCOPE OF THE SSA 2.1 Under the terms and conditions set forth in the Agreement Documents (i) Supplier shall - exclusively for Sony Ericsson - perform Product Supply regarding the Product, and (ii) Sony Ericsson shall be entitled to purchase the Products from Supplier under the PA. 2.2 In the event of an inconsistency in the Agreement Document, the inconsistency shall be resolved by giving documents precedence in the following order: (i) The Purchase Order, excluding Sony Ericsson's general purchasing conditions if such have been enclosed with the Purchase Order, (ii) The PA, (iii) The GSPA. (iv) This Agreement excluding the Enclosures, (v) Enclosure 2.3 Project Plan (vi) Enclosure 10.1 Prices and Price model (vii) Enclosure 14.1 Purchase of components, (viii) Enclosure 14.2 Liability and Forecast model 2.3 Included in the Product Supply shall be repair and maintenance services as set out in Enclosure 2.3. 3. FORECASTS AND ROADMAPS 3.1 A forecast of RTL and production volumes may be included in Enclosure 2.3.These volume are only for production and capacity planning purposes. Sony Ericsson is not committed to buy according to the forecasted volumes. Sony Ericsson liability of the forecasted volumes as per Article 14. 4. COMMUNICATION AND CONTACT PERSONS 4.1 In accordance with Subsection 5.5 of the GSPA the Parties hereby appoint the contact persons set out in Enclosure 2.3 to receive and to communicate information. 5. INDUSTRIALISATION SERVICES 5.1 Supplier shall, as part of the Product Supply and in accordance with Subsection 6.1 of the GSPA, lead and be responsible for the industrialisation of Product. Page 3 of 7 10th January 2003 5.2 Supplier shall, as part of the Product Supply and in accordance with Subsection 6.4 of the GSPA, provide information for the design work and furthermore manufacture the test applications. 5.3 The requirements for traceability as provided in Subsection 6.7 in the GSPA shall be as set out in Enclosure 2.3. 6. INDUSTRIALISATION-TEST APPLICATIONS. 6.1 Supplier shall develop and deliver Manufacturing Test Applications as set out in Section 7 of the GSPA and as the case may be in Enclosure 2.3 7. PROTOTYPES 7.1 Supplier shall (i) provide Sony Ericsson with Prototypes (ii) review the Prototypes for manufacturability, (iii) perform the testing of the Prototype, as defined in Enclosure 2.3 and (iv) provide Sony Ericsson with written reports of the analysis of the Prototypes. 8. SPECIFICATION 8.1 Supplier shall not deliver any Products unless they meet the requirements set out in the Specification as set out in Enclosure 2.3 and amended from time to time in and as further described in Section 14 in the GSPA. 9. DOCUMENTATION 9.1 Project Documentation The Supplier shall submit written reports to Sony Ericsson on the activities and the progress of the Product Supply. Such reports shall include the reports and plans specified in Enclosure 2.3. 9.2 Product Documentation Supplier shall produce and deliver to Sony Ericsson Product Documentation fulfilling the requirements set out in templates included in Enclosure 2.3. 10. PRICING AND TERMS OF PAYMENT 10.1 The current price and the price model of the Product shall be as set out in Enclosure 10.1. All invoices sent by Supplier shall be in USD or Euro as agreed in the PA 10.2 Price review Page 4 of 7 10th January 2003 The price of the Products shall be reviewed and agreed quarterly before the ending of every quarter in order for the prices to be firm for deliveries during the following quarter. The basis for the price review shall be: (i) significant changes in volumes, and/or; (ii) fluctuations in the exchange rate as defined below, and/or; (iii) changes to the Specification, and/or; (iv) increased production efficiency including but not limited to "The learning curve advantage", and/or; (v) changes in the price of the components. (vi) delivery performance in the last quarter before against agreed and acknowledge order, call of lead time Changes in the Specification and/or changes of a specific component price during a quarter, which causes a different price shall immediately or with a reasonable delay - due to material in stock - apply to all ordered Products. Such reasonable delays shall however only relate to reasonable explainable normal stock levels or situations with higher stock levels attributable to Sony Ericsson. At the quarterly price review meetings Supplier will describe and specify the changes made during the quarter. The different price shall be passed on to Sony Ericsson at the aforementioned fixed exchange rate as defined in GSPA. 11. TERMS OF DELIVERY 11.1 Delivery time The Supplier shall perform the Product Supply, in accordance with the time-schedule set out in Enclosure 2.3 Dates of delivery of volume produced Products shall be as stated in the relevant P.O. 11.2 Delivery terms Applicable terms of delivery shall be FCA Hong Kong International Airport, INCOTERMS 2000, unless otherwise agreed in P.O. 12. PACKING AND LABELLING 12.1 The Products shall be packed and marked separately as set out in the Specifications and the applicable Purchase Order. The Purchase Order and product numbers shall be set out in the shipping documents. 13. QUALITY 13.1 All Product Supply shall be handled in accordance with the standards/requirements set out in the Specification and in Enclosure 2.3 14. PURCHASE OF COMPONENTS Page 5 of 7 10th January 2003 14.1 The Supplier shall purchase materials at contracted prices under existing Sony Ericsson Agreements for supply of materials as set out in Enclosure 14.1. 14.2 Sony Ericsson liability for components as related to volume forecast as set out in Enclosure 14.2 14.3 The Supplier is responsible for the purchase and supply of all components. 15. TERM OF AGREEMENT AND TERMINATION 15.1 This Agreement shall come into force upon its execution by duly authorised representatives of both Parties and shall remain in effect until three (3) months have passed following written notice of termination by either Party, unless terminated on an earlier date as set out in Section 29 "TERM OF AGREEMENT AND TERMINATION" in the GSPA. IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed, in duplicate, each party taking one copy. Date: 10th January 2003 Date: 10th January 2003 Place: Lund Place: Lund NAM TAI ELECTRONIC & SONY ERICSSON MOBILE ELECTRICAL PRODUCTS Ltd COMMUNICATIONS AB /s/ Karene Wong /s/ KAZUAKI TAKANOSE -------------------------- ------------------------------ KARENE WONG KAZUAKI TAKANOSE [SONY ERICSSON LOGO] 1 (7) Internal Limited PROJECT PLAN Filip Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P-02:1321 Approved Checked Date Rev Reference NDU/PC Katarina Ekelund 2002-12-18 B File PROJECT PLAN FILIP CONFIDENTIAL The content of this document is the property of Sony Ericsson Mobile Communication AB and may not be communicated to any other party in any form without the prior written consent of Sony Ericsson Mobile Communication AB. Project Manager: NDU/ P Jeanette Bengtsson Product Manager: NM Magnus Hultberg Sony Ericsson Cost Center: 32001 Project Account Number: 10004069 TABLE OF CONTENTS 1 Revision history 2 2 Project Summary 2 3 Activities 2 4 Time Schedule 4 5 Prototypes 4 6 Type Approval 5 7 Volume Estimates 5 8 Project Responsibilities 6 9 Contractors 6 10 Project Control 6 11 Cross Project Links 6 12 Additional Agreements Document 7
[SONY ERICSSON LOGO] 2 (7) Internal Limited PROJECT PLAN Filip Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P-02:1321 Approved Checked Date Rev Reference NDU/PC Katarina Ekelund 2002-12-18 B File 1 REVISION HISTORY
REV DATE -------------------------------------------------------------------------- B Jeanette Bengtsson 2002-12-18 Activities updated with ALP -------------------------------------------------------------------------- -------------------------------------------------------------------------- --------------------------------------------------------------------------
2 PROJECT SUMMARY Filip is a low cost Camera. TBD 3 ACTIVITIES According to document Reporting and Meeting NDU/P - 02:1323 A 3.1 HARDWARE/OPTICS Responsible developer C-Tech: PM TBD 3.2 MECHANICS/TOOLING Responsible developer Namtai: PM TBD 3.3 SOFTWARE Responsible developer C-Tech: PM TBD 3.4 ID Responsible SEMC 3.5 PACKAGING AND ACCESSORIES Responsible SEMC 3.6 SYSTEM VERIFICATION - Functional C-Tech Responsible C-Tech: PM TBD - Environmental Namati Responsible Namtai: PM TBD - Image Quality C-Tech [SONY ERICSSON LOGO] 3 (7) Internal Limited PROJECT PLAN Filip Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P-02:1321 Approved Checked Date Rev Reference NDU/PC Katarina Ekelund 2002-12-18 B File Responsible C-Tech: PM TBD 3.7 SYSTEM VALIDATION - FSV Responsible C-Tech: PM TBD - GFT SEMC - CRT SEMC 3.8 SOURCING - Sourcing Namati Responsible Namtai: PM TBD - Pricing and negotiation Namtai Responsible Namtai: PM TBD - Volume Support Namtai Responsible Namtai: PM TBD - Logistics Namtai Responsible Namtai: PM TBD 3.9 TECHNICAL APPROVAL - HW/Optics and SW C-Tech Responsible C-Tech: PM TBD - Mechanics Namtai Responsible Namtai: PM TBD 3.10 INDUSTRALISATION - Test Strategy Namtai Responsible Namtai: PM TBD - Test SW Dev. C-Tech Responsible C-Tech: PM TBD - Prod. Tech. Namtai Responsible Namtai: PM TBD [SONY ERICSSON LOGO] 4 (7) Internal Limited PROJECT PLAN Filip Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P-02:1321 Approved Checked Date Rev Reference NDU/PC Katarina Ekelund 2002-12-18 B File - PSA Namtai Responsible Namtai: PM TBD - SPVR Namtai Responsible Namtai: PM TBD 3.11 SUPPORT SERVICES - TBD 3.12 ALP - Total Implementation Responsible C-Tech 2. TIME SCHEDULE More detailed time schedule is found in the Time Plan (Microsoft Project Gantt Chart) Document No.: TBD
ACTIVITY PLANNED ESTIMATED ACTUAL Milestone 2 W TBD W W Tollgate 2 W TBD W W PA W TBD W W Milestone 3 W TBD W W Tollgate 3 W TBD W W Milestone 4 W TBD W W Tollgate 4 W TBD W W LL W TBD W W RTL W 30 W W Milestone 5 W TBD W W Tollgate 5 W TBD W W Milestone 6 W TBD W W Tollgate 6 W TBD W W
3. PROTOTYPES
PROTOTYPES PLANNED ESTIMATED ACTUAL UNITS EP1 W TBD W W (25?) pcs FP1 W TBD W W 300? pcs
[SONY ERICSSON LOGO] 5 (7) Internal Limited PROJECT PLAN Filip Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P-02:1321 Approved Checked Date Rev Reference NDU/PC Katarina Ekelund 2002-12-18 B File FP2 W TBD W W 750? pcs FP3/RTL W TBD 300? pcs
4. TYPE APPROVAL - RADIO APPROVAL PLANNED ESTIMATED ACTUAL W TBD W W - EMC APPROVAL PLANNED ESTIMATED ACTUAL W TBD W W - SAFETY APPROVAL PLANNED ESTIMATED ACTUAL W TBD W W 5. VOLUME ESTIMATES
PLANNED ESTIMATED ACTUAL UNITS Pre-Series * W TBD W W kpcs Series Start ** W TBD W W RTL volume W TBD W W kpcs Capacity per month Min 100? kpcs Amortization volume TBD kpcs Total volume 1000? kpcs Estimated lifetime TBD month
* "Limited Production" ** "Volume Production" Above listed volume is only for planning purposes and do not constitute a commitment for SEMC to purchase [SONY ERICSSON LOGO] 6 (7) Internal Limited PROJECT PLAN Filip Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P-02:1321 Approved Checked Date Rev Reference NDU/PC Katarina Ekelund 2002-12-18 B File 6. PROJECT RESPONSIBILITIES Sony Ericsson Mobile Communications AB +46 46 19 40 00 According to Reporting and Meeting NDU/P 02:1323 7. CONTRACTORS - DESIGN (Development) According to Reporting and Meeting NDU/ P 02:1323 Agreement no. CTECH: FILIP: TBD 9.2 PRODUCTION (Manufacturing) According to Reporting and Meeting NDU/ P 02:1323 Agreement no. NAMTAI: FILIP: TBD 10 PROJECT CONTROL Main TTM Work Model NDU/ P-02:1324 TTM Work Model External (Abstract out of Main TTM Work Model) NDU/P-02:1325 The TTM work Model will be updated after TG1 and TG2. This means that "TBD" will be updated and additional documents will be required. Depending on achieved results, adjustments will be done on existing requirements. The Project Plan and therein listed documents will be subject to further updates and amendments. 11 CROSS PROJECT LINKS [SONY ERICSSON LOGO] 7 (7) Internal Limited PROJECT PLAN Filip Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P-02:1321 Approved Checked Date Rev Reference NDU/PC Katarina Ekelund 2002-12-18 B File 12 ADDITIONAL AGREEMENTS DOCUMENT < Specifications > NDD-02:1223 PA2 < Main TTM Work Model > NDU/ P-02: 1321 < TTM Work Model External > NDU/ P-02: 1322 < Reporting and Meeting > NDU/ P 02: 1323 < Document structure spec. > 109 42-TBD < Verification plans > TBD < Industrial design > TBD < Repair processes > TBD < Validation plans > TBD < Pre-study report > TBD < Pre-study spec. > TBD < Capacity build plans > TBD < TBD > [SONY ERICSSON LOGO] 1 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P-02:1325 Approved Checked Date Rev Reference NDU/PC Katarina Ekelund 2002-12-03 PB File TTM WORK MODEL EXTERNAL
BOX NO ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED DATE EXECUTION PHASE TG 0 - TG 1 1.6 Technical Concepts - Pre-Study - Suppliers Finalized - Pre-Study Report Emma 2 compatible SW 1.8 Industrial Design - Industrial Design - SEMC - Product Models (CAD files) - ID Report Mechanical support is needed - Suppliers from the supplier 1.10 IPR Analysis - IPR Disclosures - Suppliers Tracked 1.14 Pre-Risk Analysis - Pre-Risk Analysis - Suppliers Generated 1.15 Lessons Learned - Lessons Learned - Suppliers Generated 2.9 Prototype - Prototype - Suppliers
[SONY ERICSSON LOGO] 2 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P-02:1325 Approved Checked Date Rev Reference NDU/PC Katarina Ekelund 2002-12-03 PB File EP 0 Working samples TOLLGATE 1 - Decision to start a SEMC Feasibility-Study
[SONY ERICSSON LOGO] 3 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P-02:1325 Approved Checked Date Rev Reference NDU/PC Katarina Ekelund 2002-12-03 PB File
BOX NO ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED DATE EXECUTION PHASE TG 1 - TG 2 2.2 Long Lead Time Parts - Key Elements Report - Suppliers and Processes Supplier responsible to contact SEMC Identified If they need support 2.15 Objects and Sub- - Project Plan, Verification - Suppliers Projects Plans, Budget Plan, Budget, Time and Time Schedule Schedule, Sub-Project Plan, Prototype plan, Travel Plan, Organisation and responsible within C-Tech and Namtai 2.17 Risk Analysis - Risk Analysis - Suppliers 2.18 Capacity Build Plan - Capacity Build Plan - Suppliers Developed The production capacity must include a spare-part of 1% -> 2% 2.23 IPR Tracked - IPR Disclosures - Suppliers Tracked 2.25 Lessons Learned - Updated Lessons - Suppliers Updated Learned 2.26 Functional - Functional Requirement - Suppliers Requirement Specification on Phone
[SONY ERICSSON LOGO] 4 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P-02:1325 Approved Checked Date Rev Reference NDU/PC Katarina Ekelund 2002-12-03 PB File Specification Rev. A, This need to be a SEMC report, FRS 3.5 Technical Design - Periodical Reports -Suppliers - Report at Deviation - Design Report (BOM) TOLLGATE 2 - Decision to start the SEMC Execution Phase
[SONY ERICSSON LOGO] 5 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1325 Approved Checked Date Rev Reference NDU/ PC Katarina Ekelund 2002-12-03 PB File
BOX ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED NO DATE EXECUTION PHASE TG 2 -TG 3 -------------------------------------------------------------------------------------------------------- 3.6 Supply Analysis on - Material Supply -Suppliers Present Component Report Material flow, risks if the volume Specification increases 3.9 Customer Package - Product Package -SEMC Design - Customer Package -Suppliers Concept (type of material could be decided) there need to be a final -SEMC model to finalize this item) 3.10 Producibility Review - Producibility Review -Suppliers Conducted Report 3.12 Product Design - Preliminary Product -Suppliers Documents Design Documents (WHAT DATE?) - Preliminary Product -SEMC Design Documents in PRIM and GASK 3.14 User Documentation - User Documentation -SEMC Concept Generated Directed - User Document -Suppliers Concept - Preliminary User -Suppliers Document Technical Design - Design Report -Suppliers
[SONY ERICSSON LOGO] 6 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1325 Approved Checked Date Rev Reference NDU/ PC Katarina Ekelund 2002-12-03 PB File 3.16 (Bill of Material) (BOM Updated) 3.17 Production Process - Production Process -Suppliers Specification Updated Specification Updated - SPVR plan 3.18 Tools Designed - Recommendation to -Suppliers Start Tool Design - Design Tools -Suppliers 3.20 Customs Analysis - Customs Analysis -Suppliers Report Updated TEMPLATE FROM SEMC - Report Evaluated -SEMC 3.23 Engineering Prototypes - Engineering Prototypes -Suppliers Built EP 1; EP 2 - Engineering Prototypes Built Report T ONE REPORT FOR EACH EP AND FP PRODUCTION. TEMPLATE FROM SEMC 3.24 Engineering Verification - Engineering Verification -Suppliers Performed Report TEMPLATE FROM SEMC - Decision on Acceptance -Suppliers 3.25 Capacity Build Plan - Updated Capacity Build -Suppliers Updated Plan PLUS SPARE PARTS CAPACITY - Updated Capacity Build -SEMC Plan
[SONY ERICSSON LOGO] 7 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1325 Approved Checked Date Rev Reference NDU/ PC Katarina Ekelund 2002-12-03 PB File 3.28 IPR Tracked - IPR Disclosures -Suppliers Tracked 3.30 Material Drive - Approval to Drive -SEMC Material for Volume Production - Material Driving -Suppliers 3.32 Product Safety Review - Product Safety Review -Suppliers Conducted Report Template from SEMC 3.35 Component Risk - Supply Analysis -Suppliers Analysis Performed Report (IS THERE ANY CHANGE IN THE BOM) - Supply Analysis -SEMC Report Evaluated 3.36 Production Concept - Production Concept -Suppliers Verification Verification Everything completed according to RTL - Hard Tools Completed -Suppliers - Process/test equipment etc - Production Concept Evaluated -SEMC 3.38 Customs Analysis - Customs Analysis -Suppliers Report Updated SEE 3.20 Customs analysis Evaluated -SEMC
[SONY ERICSSON LOGO] 8 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1325 Approved Checked Date Rev Reference NDU/ PC Katarina Ekelund 2002-12-03 PB File 3.39 User Document - User Document Design -Suppliers Completed Completed 3.40 Customer Package - Customer Package -Suppliers Design Completed Design Completed CAD FILES READY, MASTERPACK, BULK PACK AND ADJUSTMENT FOR PALLET 3.43 Factory Prototypes - Factory Prototypes FP 1 -Suppliers - FP Build Report Built - SAME AS 3.23 3.44 Engineering - Engineering Verification -Suppliers Verification II Performed Report - SAME AS 3.24 - Decision on Acceptance - Changes ? -Suppliers 3.45 User Document - Verification -SEMC Verified - "LEAFLET" Samples to SEMC for approval? Suppliers 3.46 Customer Package - Verification -SEMC Verified Samples to SEMC for the approval? -Suppliers 3.47 Product Design - Product Design -Suppliers Documents Updated Documents Updated
[SONY ERICSSON LOGO] 9 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1325 Approved Checked Date Rev Reference NDU/ PC Katarina Ekelund 2002-12-03 PB File When will the document be ready? - Product Design -SEMC Documents in PRIM and GASK Updated 3.49 Risk Analysis - Risk Analysis -Suppliers Updated Updated I 3.50 Functional - Functional Requirement -Suppliers Requirement Specification on Phone Specification Finalized FRS 3.55 TOLLGATE 3 - Decision to Continue -SEMC Execution - Decision to Recommended Public Announcement BOX ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED NO DATE EXECUTION PHASE TG 3-TG 4
[SONY ERICSSON LOGO] 10 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1325 Approved Checked Date Rev Reference NDU/ PC Katarina Ekelund 2002-12-03 PB File 4.1 Pre-Production Starts - Factory Prototypes -Suppliers FP 2; FP 3 SAME AS 3.43 4.3 Customer Package - Customer Package -Suppliers Design Completed Design Completed - Approved Package -SEMC Design - Changes? - LATEST DATE EVERYTHING MUST BE READY -Suppliers 4.4 Interoperability Test - System Verification TEMPLATE -Suppliers Performed - System Verification FSV Report - Decision on Acceptance -Suppliers - Changes? - Internal Type Approval (WHEN IS EVERYTHING READY SO THAT 4.5 Internal Type Approval THE TEST CAN BE DONE?) -Suppliers Conducted - Internal Type Approval Report -SEMC - Decision on Acceptance -SEMC - Changes? -Suppliers - External Type Approval (WHEN IS EVERYTHING READY TO BE 4.6 External Type TESTED?) -Suppliers Approval Conducted - External Type Approval -SEMC
[SONY ERICSSON LOGO] 11 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1325 Approved Checked Date Rev Reference NDU/ PC Katarina Ekelund 2002-12-03 PB File 4.9 User Documentation - User Documentation -Suppliers Completed - Decision on Acceptance -SEMC - Changes? -Suppliers - Latest date everything - must be ready 4.10 Product Validation - Customer Services Validation -SEMC (DATE WHEN THE TEST CAN BE PERFORMED) APPROVED Conducted Product Validation - Changes? -Suppliers Date when the test can be performed 4.14 Production - Production Documents -Suppliers Documentation Finalized Finalized (DATE WHEN IT SHOULD BE FINALIZED) - Documents in GASK -SEMC and PRIM. (Code PRA) 4.16 DRS Compliance - DRS Compliancy -Suppliers Protocol - Technical Approval -Suppliers 4.20 Serial Process - Pre-series Build Report -Suppliers Verification Run (SPVR) - SPVR Report -Suppliers - SPVR Approval SEMC - Changes? -Suppliers
[SONY ERICSSON LOGO] 12 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1325 Approved Checked Date Rev Reference NDU/ PC Katarina Ekelund 2002-12-03 PB File 4.22 Technical Summary - Technical Summary -Suppliers Review Conducted Review Report 4.25 Risk Analysis - Risk Analysis -Suppliers Updated Updated 4.27 IPR Tracked - IPR Disclosures -Suppliers Tracked 4.31 TOLLGATE 4 - Decision to start -SEMC production and limited launch according to approved plans. BOX ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED NO DATE
[SONY ERICSSON LOGO] 13 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1325 Approved Checked Date Rev Reference NDU/ PC Katarina Ekelund 2002-12-03 PB File EXECUTION PHASE TG 4 - TG 5 5.9 Remaining Supply - Eliminate remaining -Suppliers Issues Eliminated supply issues 5.10 Volume Production - Series Production Units -Suppliers Started and Packaging according to production plan (RTL criteria) 5.11 Transfer Project - Decision to Transfer -SEMC Responsibility to Project Responsibility Product Maintenance to Product Maintenance Project responsibility and organization in the -Suppliers Maintenance phase 5.13 Lessons Learned - Updated Lessons -Suppliers Updated Learned 5.16 TOLLGATE 5 - Decision to Launch the -SEMC Product According to RTL Definition - To Continue the Execution According to Original or Revised Plan BOX ACTIVITY NAME OUTPUT RESPONSIBLE COMPLETED NO DATE CONCLUSION PHASE TG 5-TG 6
[SONY ERICSSON LOGO] 14 (14) Internal Limited TTM Work Model External Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1325 Approved Checked Date Rev Reference NDU/ PC Katarina Ekelund 2002-12-03 PB File 6.1 Volume Production - Volume Production -Suppliers Running According to Original or Revised Plan MONTHLY REPORT 6.10 TOLLGATE 6 - Decision to Close -SEMC Project and Hand over to Maintenance Organization
[SONY ERICSSON LOGO] 1 (5) Internal Limited Reporting and Meetings Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1323 Approved Checked Date Rev Reference NDU/ PC Gunilla Wejfeldt 2002-11-19 A File REPORTING AND MEETINGS CONTENTS 1.1 Project organization....... 0 1.2 Reporting structure........ 2 1.3 Phone list Sony Ericsson... 3 1.4 Phone list Namtai.......... 4 1.5 Phone list C-Tech.......... 5
1.1 PROJECT ORGANIZATION. [PROJECT ORGANIZATION CHART] [SONY ERICSSON LOGO] 2 (5) Internal Limited Reporting and Meetings Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1323 Approved Checked Date Rev Reference NDU/ PC Gunilla Wejfeldt 2002-11-19 A File 1.2 REPORTING STRUCTURE. Peter Johansson is responsible for the coordination of the project management of C-Tech and Namtai. Namtai Project Manager (PM) and C-Tech PM reports weekly through Peter Johansson to Main Project Management. Peter Johansson attends weekly meetings at SEMC. Weekly report according to NDU/ P 02:1666. Mail concerning the project shall be copied to Main Project Management. Urgent matters shall upon receipt be reported to Main Project Management. All issues and contacts between SEMC and supplier go through Main Project Managers if nothing else is agreed. TTM-model according to NDU/ P 02:1325. [SONY ERICSSON LOGO] 3 (5) Internal Limited Reporting and Meetings Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1323 Approved Checked Date Rev Reference NDU/ PC Gunilla Wejfeldt 2002-11-19 A File 1.3 PHONE LIST SONY ERICSSON
Name Company/ Title Number --------------------------------------------------------------------- Ola Lonhage SEMC/ Main Project +46 46 231645 Manager Draken Jeanette Bengtsson SEMC/ Main Project +46 46 193656 Manager FILIP Maths Gylling SEMC/ Buyer (Paternity +46 46 232879 leave) Niclas Jenvert SEMC/ Buyer +46 46 194673 Carina Rietz SEMC/ Product Manager +46 46 193738 (Maternity leave) Magnus Hultberg SEMC/ Product Manager +46 46 193655 Jessica Reinholds SEMC/ PMQA +46 46 231201 Mats Dahlander SEMC/ Design & Test, FILIP +46 46 232528 Bengt Marntell SEMC/ Design & Test, +46 46 231856 DRAKEN Joshua SEMC/ Designer FILIP Jeanna Kimbre SEMC/ Designer DRAKEN +46 46 231662 Johan Larsson SEMC/ Documentation +46 46 193997 specialist Mika Lilja SEMC/ Customer support +46 46 194011 Andreas Paulsson SEMC/ Product validation +46 46 194395 Hakan Sjoberg SEMC/ Type approval +46 46 193559 Christian SEMC/ Packaging Specialist +46 46 194586 Hakansson Benjamin Wong SEMC/ PMQA, HK Office +852 2590 2399
[SONY ERICSSON LOGO] 4 (5) Internal Limited Reporting and Meetings Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1323 Approved Checked Date Rev Reference NDU/ PC Gunilla Wejfeldt 2002-11-19 A File 1.4 PHONE LIST NAMTAI -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- [SONY ERICSSON LOGO] 5 (5) Internal Limited Reporting and Meetings Prepared (also subject responsible if other) No. NDU/ P Jeanette Bengtsson NDU/ P - 02:1323 Approved Checked Date Rev Reference NDU/ PC Gunilla Wejfeldt 2002-11-19 A File 1.5 PHONE LIST C-TECH -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Enclosure 10.1 Prices and Price model. PRICE MODEL. See enclosed Excel sheet, (Enclosure 10.1 A) to be applied as price model. PRICE. The following price of the Product is agreed. All prices in USD. See Enclosure 10.1 B Prices shall be updated during the development work. Present sheet based upon CIF sensor and thereto related memory configuration, Changes in specification may change prices. Prototypes to be charged at agreed product price plus 5.00 USD each The price of the Product is based upon an electronic BOM with CIF Sensor cost of 6.99 USD. The variety of options listed in enclosure 10.1.B is defined in Namtai quote dated 2002-10-12 ed. B. The corresponding price for the Product but with Argus Lite COB is 9.2 USD, based upon an electronic BOM of 5.4 USD excluding assembly of Argus of 0.4 USD. NRE cost: 19200 USD, travel expenses. Tooling cost: 95.000 USD for a production capacity of 200k units per month Test equipment: 136.500 USD. The August and August CI test equipment shall be reused to greatest possible extend. Tooling and test equipment cost shall be amortized over a fixed amount of units, to be defined and added onto the product price. Enclosure 10.1 A Price model 1 MATERIAL COST Bill of material ------------ Material scrap 1% ------------ Material burden 1.5% ------------ TOTAL MATERIAL COST ============ 2 LABOUR COST PROCESS RATE (USD) LABOUR TIME ------------ SMT 0.003/chip ------------ Final assy. 4.24/hour ------------ Testing 4.24/hour ------------ Packaging 4.24/hour ------------ TOTAL LABOUR COST ============ 3 FREIGHT COST According to enclosure ============ 4 FINANCIAL COST 1.5% of bill of material for 60 days credit ============ 0.75% of bill of material for 30 days sea shipment. IF APPLICABLE ============ 0.375% of bill of material for 15 days sea shipment. IF APPLICABLE ============ 5 PROFIT 4.3% of bill of material ============ TOTAL UNIT PRICE ============ TOOLING COST (FOR INFORMATION ONLY) ============
Enclosure 10.1 B Price SONY ERICSSON MOBILE COMMUNICATIONS AB CONFIDENTIAL DATE: 23-SEP-02 MODEL : FILLP (WITH C-TECH SOLUTION) QTY : 1000K
CONFIG. (MECH / PACKING) Core/ Core 1/Core 2/Core 3/Core Core/A 1/A 2/A 3/A Core/B NO OF PLASTIC PIECES PARTS 2 4 2 4 2 4 2 4 2 SPRAY No No Yes Yes No No Yes Yes No PACKING Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Blister MANUAL/CASE/NECKLOOP No No No No Yes Yes Yes Yes Yes ----------------------------------------------------------------------- 1 MATERIAL COST Bill of material 8.62 8.73 9.01 9.40 9.39 9.50 9.78 10.17 9.57 ------ ------ ------ ------ ------ ----- ----- ----- ------- Material scrap 1% 0.09 0.09 0.09 0.09 0.09 0.09 0.10 0.10 0.10 ------ ------ ------ ------ ------ ----- ----- ----- ------- Material burden 1-5% 0.13 0.13 0.14 0.14 0.14 0.14 0.15 0.15 0.14 ------ ------ ------ ------ ------ ----- ----- ----- ------- TOTAL MATERIAL COST 8.84 8.94 9.23 9.64 9.63 9.73 10.02 10.43 9.8O ------ ------ ------ ------ ------ ----- ----- ----- ------- 2 LABOUR COST PROCESS RATE (USD) LABOUR TIME SMT 0.003/chip 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 ------ ------ ------ ------ ------ ----- ----- ----- ------- Final assy 4.24/hour 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 ------ ------ ------ ------ ------ ----- ----- ----- ------- Testing 4.24/hour 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 ------ ------ ------ ------ ------ ----- ----- ----- ------- Packaging 4.24/hour 0.11 0.11 0.11 0.11 0.12 0.12 0.12 0.12 0.14 ------ ------ ------ ------ ------ ----- ----- ----- ------- TOTAL LABOUR COST 1.00 1.00 1.00 1.00 1.01 1.01 1.01 1.01 1.02 ------ ------ ------ ------ ------ ----- ----- ----- ------- 3 FREIGHT + INSURANCE COST FCA Hong Kong (ship to SEM logistic agent in HK 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 ------ ------ ------ ------ ------ ----- ----- ----- ------- 4 FINANCIAL COST 0.75% of bill of material for 30 days credit 0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.07 ------ ------ ------ ------ ------ ----- ----- ----- ------- 5 PROFIT 4.8% of bill of material 0.41 0.42 0.43 0.45 0.45 0.46 0.47 0.49 0.46 ------ ------ ------ ------ ------ ----- ----- ----- ------- 6 UNIT PRICE FCA HK USD 10.39 10.50 10.80 11.23 11.23 11.34 11.64 12.07 11.43 ------ ------ ------ ------ ------ ----- ----- ----- -------
CONFIG. (MECH / PACKING) 1/B 2/B 3/B Core/C 1/C 2IC 3IC NO OF PLASTIC PIECES PARTS 4 2 4 2 4 2 4 SPRAY No Yes Yes No No Yes Yes PACKING Blister Blister Blister Gift Box Gift Box Gift Box Gift Box MANUAL/CASE/NECKLOO Yes Yes Yes Yes Yes Yes Yes ------------------------------------------------------------------- 1 MATERIAL COST Bill of material 9.67 9.95 10.35 9.61 9.71 9.99 10.39 ------- ------- ------- -------- -------- -------- -------- Material scrap 1% 0.10 0.10 0.10 0.10 0.10 0.10 0.10 ------- ------- ------- -------- -------- -------- -------- Material burden 1-5% 0.15 0.15 0.16 0.14 0.15 0.15 0.16 ------- ------- ------- -------- -------- -------- -------- TOTAL MATERIAL COST 9.91 10.20 10.60 9.85 9.95 10.24 10.64 ------- ------- ------- -------- -------- -------- -------- 2 LABOUR COST PROCESS RATE (USD) LABOUR TIME SMT 0.003/chip 0.35 0.35 0.35 0.35 0.35 0.35 0.35 ------- ------- ------- -------- -------- -------- -------- Final assy 4.24/hour 0.35 0.35 0.35 0.35 0.35 0.35 0.35 ------- ------- ------- -------- -------- -------- -------- Testing 4.24/hour 0.19 0.19 0.19 0.19 0.19 0.19 0.19 ------- ------- ------- -------- -------- -------- -------- Packaging 4.24/hour 0.14 0.14 0.14 O.14 0.14 0.14 0.14 ------- ------- ------- -------- -------- -------- -------- TOTAL LABOUR COST 1.02 1.02 1.02 1.02 1.02 1.02 1.02 ------- ------- ------- -------- -------- -------- -------- 3 FREIGHT + INSURANCE COST FCA Hong Kong (ship to SEM logistic agent in HK 0.07 0.07 0.07 0.07 0.07 0.07 0.07 ------- ------- ------- -------- -------- -------- -------- 4 FINANCIAL COST 0.75% of bill of material for 30 days credit 0.07 0.07 0.08 0.07 0.07 0.07 0.08 ------- ------- ------- -------- -------- -------- -------- 5 PROFIT 4.8% of bill of material 0.46 0.48 0.50 0.46 0.47 O.48 0.50 ------- ------- ------- -------- -------- -------- -------- 6 UNIT PRICE FCA HK USD 11.54 11.84 12.27 11.47 11.58 11.89 12.31 ------- ------- ------- -------- -------- -------- --------
Enclosure 14.1 Purchase of components. COMPONENTS BOUGHT UNDER SONY ERICSSON AGREEMENTS. Supplier may call off volumes of below listed components from applicable Sony Ericsson agreements. Any such components shall only be used for manufacturing of the Product. Supplier may issue a forecast of the estimated volume to the selected component supplier to secure delivery. Supplier is solely responsible for the supply chain 1. Icon, 2. System connector, Sony Ericsson will advise about agreements with component supplier and valid prices during the project. Enclosure 14.2, Liability and Forecast model The components covered by this Enclosure shall solely be used for the manufacturing of the Product. See enclosed Excel sheet for liability model. Volume figures, component lead-time and price to be updated every month The model will be applicable for any forecast issued by Sony Ericsson as agreed between the parties. Sony Ericsson will issue a revised forecast the last business day in each month. During the ramp up period, (normally three months following the RTL date) Supplier shall review the proposed volume to confirm if the necessary capacity is available. This volume proposal to be communicated in due time before formal fore cast is issued at the end of each month. If a revised forecast or the actual call off volume will be lower for a certain month than the previously agreed, which will result in excess components and such components is not possible to reschedule the following applies; - Supplier undertakes to keep such material in stock free of charge for the first three months after the concerned month. From month four to nine after such event Sony Ericsson will cover the interest cost of the listed components based upon an reasonable interest rate and reasonable warehousing cost for the components listed herein. After this nine months period Supplier may claim that this liability undertaking by Sony Ericsson shall be executed. - In an event of excess material Namtai undertakes to make their best effort to cancel any outstanding purchase order of components and to resell or reuse any excess component prior to making any claim to Sony Ericsson - Sony Ericsson will assume liability for scrap of the above components provided cause of scrap is solely at Sony Ericsson and prior written approval to scrap. Sony Ericsson maximum liability is limited to direct material and the maximum liability figure is defined by the liability model using the applicable forecast volume, component lead-time and prices. - Sony Ericsson shall have the option to have the components assembled into finished Products at agreed price instead of scrapping the components. If no notice is given to Sony Ericsson within one week after the receipt of revised forecast or actual monthly call off volume it is deemed that the revised forecast is accepted (i.e. No claim is to be made later nor any objection that the increased volume is not possible to meet) Any delay in delivery of the Products, caused by Supplier will in full release Sony Ericsson from its liability under this amendment. Any undertaking of Sony Ericsson and Supplier as defined herein shall be limited in time to 30th June 2005. Enclosure 14.2A Liability and Forecast model CALCULATION OF FORECAST LIABILITY PRODUCT INFORMATION Part no: DPY XXX Description Camera Project Filip Forecast dated tbd Leadtime, Call off. Days 10 Leadtime, Prod. Weeks 12 Liability per 30th March 2003 Product Price 10,9 Leadtime Months 1 2 3 4 5 6 Accumulated BOM cost per month, (USD) 0 0 0 0 0 0 % liability per month over leadtime 100% 70% 40% 30% 0% 0% Forecast month April May June July August September Average forecast per month 0 0 0 0 0 0 Liability per month, (USD) 0 0 0 0 0 0 Total liability. (USD) 0
Delta 0-12, Leadtime 5-12,9-12, Component Part no Weeks Price, USD 13-16 ------------------------------------------------------------------------------------ Argus LI COB 16 1,75 1,75 Sensor 12 Flash Memory 12 0,5 RAM Memory 12 Lens 12 Tan Cap 9 Regulator 9 Regulator 9 2,25 Tact Switch 8 Crystal 8 8 8 0 2,25 PCB 4 0,45 4 4 4 4 2,7