Term Sheet for Wafer Capacity and Loading Agreement between Integrated Telecom Express, Inc. and United Microelectronics Corporation

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Summary

Integrated Telecom Express, Inc. (ITeX) and United Microelectronics Corporation (UMC) agree on key terms for wafer manufacturing capacity and loading. UMC grants ITeX rights of first refusal for a specified quantity of wafers, with pricing and terms subject to standard conditions and ITeX's compliance with ordering commitments. ITeX must offer UMC purchase orders for a portion of its foundry needs through December 31, 2003. This document represents the full agreement on these matters between the parties.

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EX-10.20 3 ex10-20_2045.txt EXHIBIT 10.20 UMC ESSENTIAL TERMS FOR CAPACITY AND LOADING 14 February 2000 Rich Forte Integrated Telecom Express, Inc. 2710 Walsh Ave Santa Clara CA 95051 Dear Rich: As requested, this term sheet outlines the essentials of the mutual commitments between Integrated Telecom Express, Inc. (ITeX) and United Microelectronics Corporation (UMC) with respect to capacity and loading. 1. Subject to loading by IteX as described below, UMC will offer ITeX rights of first refusal to a [*] quantity of [*] wafers on the following [*] basis:
- ------------------------- ---------------------- ---------------------- ----------------------- ---------------------- [*] Period [*] [*] [*] [*] - ------------------------- ---------------------- ---------------------- ----------------------- ---------------------- - ------------------------- ---------------------- ---------------------- ----------------------- ---------------------- Wafers per [*] [*] [*] [*] [*] - ------------------------- ---------------------- ---------------------- ----------------------- ----------------------
2. [*] wafer purchases will be at [*] pricing, and subject to [*] standard terms, conditions and forecasting. Unless otherwise agreed in writing, wafer quantities will be generally [*] from [*] with [*]. 3. Conditioned upon ITeX compliance with its commitments to order from UMC during the period involved, UMC wafer prices to ITeX will be [*]. 4. On a [*] basis during the period [*] to December 31, 2003, ITeX will offer to UMC purchase orders [*] or in [*] of [*] of the total ITeX foundry requirements for the relevant period(s). CONFIDENTIAL -1- UMC(C)2000 * Certain Information in this exhibit has been omitted and filed separately with the commission. Confidential treatment has been requested with respect to the omitted portions under 17.C.F.R. section 200.80.80(b)(4), 200.83 and 230.406. Term Sheet Outline 14 February 2000, page 2 5. This term sheet outlines all promises, representations and agreements between UMC and ITeX concerning capacity and loading, and there are no agreements, representations or promises concerning such matters other than as stated here. AGREED: Integrated Telecom Express, Inc. United Microelectronics Corporation /s/ Rich Forte /s/ Peter Chang - ------------------------------ ----------------------------------- Rich Forte, President Peter Chang, CEO Foundry Operations