Common use of Cost Reduction Efforts Clause in Contracts

Cost Reduction Efforts. (A) Motorola and ASE agree to form a joint cost reduction task force focused on continuous cost improvements for Work on Contract Products, materials, and equipment. Demonstrated cost reductions resulting from joint efforts shall result in immediate price decreases to Motorola of * of the cost savings if such cost reductions are implemented by ASE for other customers, or * of the cost savings if limited to Work on Contract Products.

Cost Reduction Efforts. (A) Motorola and ASE agree to form a joint cost reduction task force focused on continuous cost improvements for Work on Contract Products, materials, and equipment. Demonstrated cost reductions resulting from joint efforts shall result in immediate price prices decreases to Motorola of * of the cost savings if such cost reductions are implemented by ASE for other customers, or of * of the cost savings if limited to Work on Contract Products. ------------ * Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.