en制造合同.docx

en制造合同.docx

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en制造合同

BBBINTERNATIONALMANUFACTURINGCONTRACT

*ConfidentialtreatmenthasbeenrequestedforcertainportionsofthisdocumentpursuanttoanapplicationforconfidentialtreatmentsenttotheSecuritiesandExchangeCommission.SuchportionsareomittedfromthisfilingandfiledseparatelywiththeSecuritiesandExchangeCommission.

REV.6-_________（M,D,Y）

ThisManufacturingAgreement（"Agreement"）isenteredinto_________,_________,_________（M/D/Y）byandbetweenAAA,Inc.havingitsplaceofbusiness_________（address）（"AAA"）andBBB（Malaysia）SDN.BHDhavingitsplaceofbusiness_________（address）（"BBB"）.

AAAhascreatedamarketforAAAhandheldcomputerproducts（hereinafter"Products"）andissolelyresponsibleforthesalesandmarketingoftheProducts.BBBhasdevelopedprocessesandpracticesformanufacturingproductsformanydifferentelectronicapplicationsandatAAA'srequestdesirestomanufactureAAA'sProductsinaccordancewithAAA'sspecifications.AAAacknowledgesthatBBB'expertiseismanufacturingandthatBBB'responsibilityrelatedtotheAAA'sProductsislimitedtothisextent.Thepartiesagreeasfollows:

1.WORK,LICENSE

BBBagreestousereasonablecommercialeffortstoperformthework（hereinafter"Work"）pursuanttopurchaseordersorchangestheretoissuedbyorforAAAandacceptedbyBBB.Workshallmeantoprocurecomponents,materials,equipmentandothersupplies,andtomanufacture,assemble,testanddeliverProductspursuanttodetailedwrittenspecifications,workmanshipstandardsandqualityrequirementsforeachsuchProduct（ref;AddendumB）whichareprovidedbyAAAandacceptedbyBBB.ForeachProductorrevisionthereof,writtenspecificationsshallinclude,butarenotlimitedto,billsofmaterials,schematics,assemblydrawings,processdocumentation,testspecifications,currentrevisionnumber,andapprovedvendorlist（hereinafter"Specifications"）asattachedhereto.

BBBisgrantedbyAAAanon-exclusivelicenseduringthetermofthisAgreementtouseallofAAA'spatents,tradesecretsandotherintellectualpropertyintheProducts,solelyinconnectionwithandtotheextentrequiredtoperformBBB'obligationsunderthisAgreement.

2.FORECASTS,ORDERS,MATERIALPROCUREMENT

2.1FORECAST.AAAshallprovideBBB,onamonthlybasis,anon-binding,rollingtwelve（12）monthProductorderforecast.

2.2PURCHASEORDERS.AAAwillissue,orhaveadesignated3rdpartydistributionpartnerissue,writtenpurchaseordersonceamonthwhichspecifyallWorktobecompleted.AAA'sdesignated3rdpartydistributionpartnersmustmeetBBBcreditworthinessguidelines,orAAAwillguaranteepurchaseordersaccordingtothetermsofthisAgreement.AAAwillensurepurchaseorderscoveraminimumfour（4）monthrollingtimeperiod.

EachpurchaseordershallreferencethisAgreement,andtheapplicablewrittenSpecificationsasdescribedinSection1.0.PurchaseordersshallnormallybedeemedacceptedbyBBB,providedhoweverthatBBBmayrejectanyorderdoesnotconformtothelead-time,flexibilityorcancellationtermsofthisAgreement.BBBshallnotifyAAAofrejectionofanypurchaseorderwithinfive（5）workingdaysofreceiptofsuchorder.

AAA,orits'designated3rdpartydistributionpartners,mayuseits'standardpurchaseorderformtoreleaseitems,quantities,prices,schedules,changenotices,specifications,orothernoticeprovidedforhereunder.ThepartiesagreethatthetermsandconditionscontainedinthisAgreementshallprevailoveranytermsandconditionsofanypurchaseorder,acknowledgmentformorotherinstrument.

2.3MATERIALPROCUREMENT.PurchaseordersissuedbyAAAorits'designated3rdpartydistributionpartnersinconformancetothisAgreementwillconstituteauthorizationforBBBtoprocure,usingstandardpurchasingpractices,thecomponents,subassemblies,materialsandsuppliesnecessaryforthemanufactureofProducts（"Inventory"）coveredbysuchpurchaseorders.

2.4LONGLEADTIMECOMPONENTS.AsAAA'sstrategicmaterialsmanagementpartner,BBBmayberequiredtopurchaseLongLeadTimeComponentsinordertoachievethescheduleflexibilityrequirementsidentifiedinSection3.2.ForthepurposesofthisAgreement,"LongLeadTimeComponents"shallmeancomponents,subassemblies,materialsandsupplieswithleadtimesgreaterthanninety（90）daysatthetimeanorderisplaced.AtthetimeofthisAgreement,nocomponents,subassemblies,materialsorsupplieshaveleadtimesgreaterthanninety（90）days.DuringthetermofthisAgreement,ifanyleadtimesforcomponents,subassemblies,materialsorsuppliesexceedninety（90）daysduetochangesinmarketconditions,BBBmayreasonablypurchaseminimumlotsizesfromsuppliers（"MinimumOrderInventory"）,evenifgreaterthantheamountnecessarytomeetpurchaseorders,inordertoensurethescheduleflexibilityrequirementsidentifiedinSection3.2areachieved.BBBwillnotifyAAAinwritingifleadtimesforanycomponents,subassemblies,materialsorsuppliesexceedninety（90）daysandwillquantifyhowmuchadditionalcancellationliabilityAAAwillincuraboveandbeyondthecancellationliabilitytermsdefinedinSection3.3.Ifleadtimesforcomponents,subassemblies,materialsorsuppliesdonotexceedninety（90）daysduringtermofthisAgreement,oranyextensionsthereof,BBBandAAAagreetoabidebytherescheduleflexibilityandcancellationliabilitytermsdefinedinSections3.2and3.3.

3.SHIPMENTS,RESCHEDULEFLEXIBILITY,CANCELLATION

3.1SHIPMENTS.AllProductsdeliveredpursuanttothetermsofthisAgreementshallbesuitablypackedforshipmentinaccordancewithAAA'sSpecifications,markedforshipmenttoAAA'sdestinationspecifiedintheapplicablepurchaseorderanddeliveredtoacarrierorforwardingagent.ShipmentwillbeF.O.B.BBB'MalaysiamanufacturingplantatwhichtimeriskoflossandtitlewillpasstoAAAorAAA'sdesignated3rdpartydistributionpartners.Allfreight,insuranceandothershippingexpensesfromtheF.O.B.point,willbepaidbyAAA.

BBBisexpectedtoachieve100%on-timedeliveryperformancetothedesignatedF.O.B.point."On-time"deliverisdefinedaswithin2daysearlyand0dayslateofscheduleddeliverydateonpurchaseordersplacedbyAAAinaccordancetothisAgreement.IfdeliveryofProductisearly,AAAoritsdesignated3rdpartydistributionpartners,mayreturnsaidProducttoBBBforre-deliveryonthescheduleddeliverydatewithBBBbearingallcostofProductreturnandre-delivery.IfProductislate,AAAmayrequireBBBtoairshiplateforreasonswithBBBcontrol,ProducttolocationsspecifiedbyAAAorits'designated3rdpartydistributionpartnerswithBBBbearingtheincrementalcostbetweenstandardcostversuspremiumairshipment.AAAwillnotunreasonablyrequireBBBtoairshipproductunlessAAAneedsProducttomeetcustomercommitments.

3.2QUANTITYINCREASESANDSHIPMENTSCHEDULECHANGES.ForanypurchaseorderissuedinaccordancetothisAgreement,AAAmay（i）increasethequantityofProductsor（ii）reschedulethequantityofProductsandtheirshipmentdateasprovidedinthetablebelow:

MaximumAllowableVarianceFromPurchaseOrderQuantities/ShipmentDates

#ofdaysbeforeAllowableMaximumMaximum

ShipmentDateonQuantityRescheduleReschedule

PurchaseOrderIncreasesQuantityPeriod

[*][*][*][*]

[*][*][*][*]

AnypurchaseorderquantitiesincreasedorrescheduledpursuanttothisSectionmaynotbesubsequentlyincreasedorrescheduledwithoutthepriorwrittenapprovalofBBB.AllotherchangesinquantityorshipmentdaterequireBBB'priorwrittenconsent.Anyre-schedulesthatexceedtheaboveperiodon3.2willbesubjecttoaonepercentinventorycarryingcharge.BBBwillusereasonablecommercialeffortstomeetquantityincreases.Ifthereareextracoststomeetascheduleincreaseinexcessoftheabovelimits,BBBwillinformAAAforitsapprovalinadvance.

3.3CANCELLATIONLIABILITY.IntheeventAAAcancelsanypurchaseorders,orportionsthereof,AAAandBBBagreetothefollowingcancellationterms:

#daysfromthe

dayofnoticeAAAcancellationliability:

0-30daysAAAisliablefor100%ofthepurchasepriceofProductsscheduledtobedelivered

within0-30daysofthedateofcancellation.

[*]AAAisliablefortheactualcostof[*]plusahandlingfee[*]

[*]AAAisliablefortheactualcostof[*]plusahandlingfee[*]

91+daysAAAmaycancelanyordersscheduledgreaterthan90daysfromthedateofcancellation

withoutliabilityexceptforinventoryapprovedbyAAAaspersection2.4.

4.ENGINEERINGCHANGES

AAAmayrequest,inwriting,thatBBBincorporateengineeringchangesintotheProduct.SuchrequestwillincludeadescriptionoftheproposedengineeringchangesufficienttopermitBBBtoevaluateitsfeasibilityandcost.BBB'evaluationshallbeinwritingandshallstatethecostsandtimeofimplementationandtheimpactonthedeliveryscheduleandpricingoftheProduct.BBBwillnotbeobligatedtoproceedwiththeengineeringchangeuntilthepartieshaveagreeduponthechangestotheProduct'sSpecifications,deliveryscheduleandProductpricingandupontheimplementationcoststobebornebytheAAAincluding,withoutlimitation,thecostofInventoryandSpecialInventoryon-handandon-orderthatbecomesobsolete.

AsAAA'sstrategicmanufacturingengineeringpartner,BBBisexpectedtomakerecommendationstoProductdesignwhichwouldmakeProductmoremanufacturable,reducematerialcostsand/orimprovequality.AAAwillevaluatesuchrecommendationsandincorporatesuchrecommendationsintoProductdesignasappropriate.BBBwillnotmakechangestoproductdesignormanufacturingprocesseswhichaffe