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 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. (B) If, in the reasonable opinion of both parties, Motorola is solely responsible for cost reductions associated with the performance of the Work, ASE shall immediately reduce the prices of the affected Contract Products by * of the per unit cost savings derived from such reduction. If such cost reduction results from the use of Motorola's Confidential Information (as defined in Section 23 hereof), ASE shall use such Confidential Information only with respect to the Work, and not any other work or services for other customers or suppliers unless, and only to the extent Motorola licenses such use. (C) Motorola agrees in good faith to work with its suppliers who have Supplier Managed Inventory Agreements with Motorola to obtain the benefits of such agreements for ASE.