Amendment Two to Supply Agreement between Maxtor Corporation and MMC Technology, Inc.

Summary

This amendment updates the supply agreement between Maxtor Corporation and MMC Technology, Inc., effective December 31, 2000. It revises product pricing and payment terms for Maxtor’s purchases from MMC, specifying how prices are calculated and when payments are due. The new terms apply from December 31, 2000, to June 30, 2001, after which the original agreement terms resume. All other provisions of the original agreement remain unchanged. The amendment ensures continued supply and support between the two companies during this period.

EX-10.81 3 f70224ex10-81.txt EXHIBIT 10.81 1 EXHIBIT 10.81 CONFIDENTIAL TREATMENT REQUESTED Amendment Two Supply Agreement This Amendment Two ("Amendment") amends the Supply Agreement, dated August 18, 1998, and its Amendment One, dated July 7, 1999 ("Agreement"), is effective December 31, 2000 ("Effective Date"), and is made by and between Maxtor Corporation, a Delaware corporation, having principal places of business at 510 Cottonwood Drive, Milpitas, California 95035 U.S.A. and 2190 Miller Drive, Longmont, Colorado 80501 U.S.A. ("Maxtor") and MMC Technology, Inc., a California corporation, having its principal place of business at 2001 Fortune Drive, San Jose, California 95131 ("MMC"). Whereas,MMC has requested Maxtor assistance with pricing and payment terms, due to failure of a recent acquisition offer; and Whereas,Maxtor agrees that this arrangement is necessary to ensure continuity of supply of quality material to support Maxtor needs; NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND ADEQUACY OF WHICH IS HEREBY ACKNOWLEDGED, AND IN CONSIDERATION OF THE ABOVE PREMISES AND THE MUTUAL PROMISES CONTAINED IN THIS AGREEMENT, THE PARTIES AGREE TO AMEND THE AGREEMENT AS FOLLOWS: Paragraph 1.4.1 (A) is amended to read as follows: 1.4.1 Product Price. (A) Product Price shall be calculated according to the following rules, and applied on a reconciliation basis to the entire Maxtor purchase of Products in a fiscal quarter. The parties shall use their best efforts to calculate such reconciliations in time for posting for the effected quarter or other reporting period. The purchase price for Product paid to MMC by Maxtor shall be /***/. Single-sided Product Price. Notwithstanding the foregoing, single-sided Product shall be priced at /***/ of the corresponding double-sided Product, in the proportion of the actual total Product purchases in each fiscal quarter or applicable pricing period. 2. Paragraph 2.12.1 is amended to read as follows: 2.12.1 Terms. Invoices shall be due and payable within /***/ days after the date of invoice. In cases where an invoice is not issued, payment shall be due within /***/ days after the delivery of the Product. Maxtor's payment advice shall reference MMC's invoice number(s) and date(s). 3. The above terms shall be in effect from the first day of Maxtor's first fiscal quarter of 2001 (December 31, 2000) until the last day of Maxtor's second fiscal quarter of 2001 (June 30, 2001). After such time, the present terms of the Agreement shall be full force and effect and the terms of this Amendment shall have no further force or effect. /***/ Indicates confidential material redacted and filed separately with the Commission. THIS AMENDMENT, INCLUDING THE AGREEMENT OF WHICH IT IS A PART, IS A COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES, WHICH SUPERSEDES ALL PRIOR OR 1 of 2 2 CONFIDENTIAL TREATMENT REQUESTED CONCURRENT PROPOSALS AND UNDERSTANDINGS, WHETHER ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO ITS SUBJECT MATTER. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THE AGREEMENT, IN THE EVENT OF A CONFLICT BETWEEN THIS AMENDMENT AND THE AGREEMENT, THIS AMENDMENT SHALL PREVAIL. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED AND ARE RATIFIED HEREBY. In witness whereof, the parties have executed this Amendment as of its Effective Date. MAXTOR CORPORATION MMC TECHNOLOGIES, INC. By: /s/ David L. Beaver By: /s/ Ian Sanders --------------------------------- ------------------------------- (signature) (signature) David L. Beaver Ian Sanders - ------------------------------------ ---------------------------------- (print name) (print name) V.P. Worldwide Materials Chief Technical Officer - ------------------------------------ ---------------------------------- (title) (title) 2 of 2