Exhibit 10.34
SUPPLY CONTRACT
Advanced Power Technology intends to secure
silicon wafers for the manufacture of power switch devices.
Siltronic Corporation manufactures silicon wafers and intends to
supply this material. Set forth is the “Silicon Supply
Agreement” between Advanced Power Technology (APT) located in
Bend, OR and Siltronic Corporation (SCO) located in Portland,
OR.
1.0
Term of Agreement
1.1
Eight and half (8.5) month agreement
commencing on April 15, 2005 and expiring on December 31,
2005.
1.2
Renegotiating discussions will
commence one month before contract expiration; extension period to
be agreed upon.
1.3
Cause for early termination of this
agreement would be for non-performance by SCO and/or APT, including
but not limiting non-payment by APT.
2.0
Volume — [ * ]
3.0
Pricing
3.1
Pricing is set forth in attachment
#1.
3.2
Where possible, SCO will
“help” keep APT competitive in both price and
technology through cost reduction programs and technology
improvements.
4.0
Payment and Freight Terms
4.1
Net [ * ] days from date of SCO
invoice. Currency in US dollars.
4.2
F.O.B. Siltronic Corporation,
Portland, OR, freight collect. Freight carrier as specified by
APT.
4.3
Freight costs for expedited
shipments, if requested by APT, will be the responsibility of
APT. SCO will incur all expedited freight costs for
late shipments caused by SCO.Substrate Buffer Stock.
5.0
Substrate Buffer Stock
5.1
For AMT reactor material:
5.1.1
SCO agrees to maintain a three week
inventory equivalent to APT’s consumption of one common
substrate. This substrate inventory will be maintained in
Portland.
5.1.2
SCO agrees to replenish the
Substrate Buffer Stock within four weeks.
[ * ] = CONFIDENTIAL TREATMENT
REQUESTED
1
