FROM 10 cc Bcc. DATE = TIME SUBJECT ‘ATTACHMENT BODY Geof Tate ‘engmgr@rambus.com, exec@rambus.com., adlepenb@rambus.com, barth@rambus.com, gasbare@rantus com, stark @rambus.com, énguyen@rambus.com,bsmangrambus.com ooraai1907 21:06:34 ‘Samsung exee meeting seoul 9/24/97 ‘met in seout with yw lee, president, samsung semi group +98 choi, runs all sales/markeling for samsung semi group Hk lim, runs memory division had met them 8/97 in seou! to discuss how we could improve our relationship. this meeting was to present a “special strategic relationship” proposal to them. (put the powerpoint foils on commor/userfolders/geoff when m back in the office wednesday 9/24 - 'm sending this from seoul kimpo airport red carpet club). they had heard about the ibm réram license announcement; yw lee had not yet heard about siemens. they knew about hp pc using rambus (they think they are getting the business for this production? i didn't say anything to the contrary). {98 choi knew about the intel mobile power symposium already and that rambus ‘was on the 99 road map. ‘hk lim hadn't heard about it and got a copy of the mobile power guidelines ‘99 rev 0.8 from me (laura - i believe this isa public document now - if did an oops let me know and il followup with ‘hk tir), ‘my pitch was they want to be #1 in dramsfin all semis and we want fo be #1 ‘memory interface standard so let's work together making special commitments to-each other in return for special advantages. the actual proposals i made them are ail ones that, when/if we get a deal with samsung done i am actualy prepared to make to our other major rdram Partners. what makes them special i quess is that samsung has the market ‘share and engineering ability o be the winner with high odds - so we are ‘ot going to block anyone else from competing with samsung. i said we want them =o commit to do rambus logic (ike necitoshibafgtiibmMujtsu who do ‘ram and rambus logic both): ©. alpha with rambus interface, consumer matimedia, dsp, asi, memory expander chip for servers, etc. “make rambus their #1 markating pry > DDR: rambus seminar series in «i; concurrent avaiabilty press release 10/07. 32M clrctrdram press, release 94/97, with same schedule as 64M (i said s3/trident would participate); 1198 multimedia ads showing concurrent->direct rdram_ “suggested they buy stock in rambus: 196 or more (250K or more) they seem wiling to consider ail ofthe above. inretum i offered reduction from 2% to 1.5% for intial 10MU of concurentdirect rdrams IF ‘Samsung is #1 seller in any given quarter R 236252 RH 387746 OUTSIDE COUNSEL ONLY cx0956-001warrants on up to 125K shares of rambus stock for a combination of goals: first to sell {MU concurrent, one of ist 3 to qualify direct rdram, one Of frst 3 to sell 10mU direct rdrams = if they prepay $1M of royalty Nowiover next 4-8 quarters we can add a ‘dedicated engineers (or they could waive the prepaid royally balance that already exists) we could help them move ahead to higher frequency, lower latency, lower power work with them on derivatives fro graphics, handhelds = they would be one of 10-12 dramviogic/system companies on a leadership council setting strategic direction for the rambus developers forum {also said they would need to joint the patent pool. they seemed to lke the idea of prepaying royalty for dedicated engineers. they asked f we had engineers now at rambus from various partners working with us or other special deals. i said we do racs all the time and that we have probably 8 engineers at rambus now from dram and logic companies, they asked if we glve companies who's dram engineers work at rambus early ‘access to our netists, etc. i said we treat all companies the same and that they are welcome, as part ofa strategic relationship, to also station 2 engineers at rambus if they think it would help on technology transfer - | said i thought we'd offered this in the past but there was no interest at the time. ("DAVE R™ - do toshiba guys get early access to our netlist release ahead of samsung because they are working at rambus?) yw lee said for him the key areas are = differentiation (getting/staying ahead of taiwan i think this means to him) - investment in rambus (he said something about similar to intel) “financial incentives {98 choi seemed to be on a different wavelength (or maybe it was good {copbad cop routine) and said that our proposed financial incentives were “altrife™. i showed them that 125K warrants could be worth $15-20M if we ‘are successful overtime. and that to us that is way more than “a trifle” although to a $608 company i guess it might be. but f $20M is a trifle than 30 is all of the money they are investing in rambus of will pay us in the future on royalty. {98 choi said we had offered individuals 100K shares when we went public!!?? ‘50 we were not offering samsung very much. i corrected his misperception there. then he said that intel got 1M warrants (this | think was his real Issue) s0 why only 125K for samsung. at that point they all pointed out that our proposal wasnt terribly ‘special. i pointed out it was a lot better than our current relationship for them and for us, so i's win win. yw lee agreed our proposal was a {definite improvement on our relationship, but he was expecting more. Wt intel i noted thet that is a very very special relationship and very diferent from what i had proposed to samsung because i didn't think ‘Samsung would go for what intel was doing for us. intel has agreed to ‘switch 100% over to rambus and create a market for us. samsung at this time is doing no market creation for us and even under my proposal would be doing a higher level of marketing but basicaly would build whatever the market would want. RH 387747 | said # samsung was wiling to consider dropping der, synclink and R 235253 COUTSIDF COUNSEL ONLY ‘cx0956-002Boor ‘announcing that after sdram-100 that rambus is their only dram strategy then we could talk about a more-intel-ike deal in terms of rewards 10 samsung, they said they had to build what customers asked for and customers are ‘asking for ddr (of course ths is because samsung has been promating to them as the best thing since sliced bread for a year). yw lee noted that even inte, although they are pushing rambus for main memory, is Considering using dar (i assume this was in reference to abid's graphics roadmap for 96/99). and they couldn't break commitments to customers, but, g8 choi said, they might consider actively promoting only ramus from now on and supplying but not doing any mora promotion for ddr. in return they would lke to see more warrants, a chance to cut fist 2% on 1OMU to 1% and reductions on the 1% royalty Iong term, i said our proposal was just one of many possible win-win deals, so we ‘would be wiling to listen to their proposal, but that for every concession they asked from us they needed to propose a concession TO us to offset it ‘30 the deal stayed win-win. i noted that going below 1% would be very dificult for us as its our only source of revenue. and that we had already given samsung the best deal in drams in 1994. overall the tone of the meeting was cordial, positive. think they were disappointed i wasnt offering more. maybe they really are wiling to do ‘much more for usin return. pointed out that we expected 3 workstation ‘companies, cyrix, amd, 83, trident all to join up to rambus in the next 3-6 ‘months 80 we are winning. and that rambus is better than ddr in all market ‘segments. they disagreed but the sense i get is that they may actually now be thinking that ddr is losing to rambus anyways so maybe they should get ‘on the rambus bandwagon and get the best deal they can while they stil have some leverage. they have the action item to send us a counter-proposal in the next few ‘weeks and then welll get together again probably in 4-6 weeks to discuss, their counter to see if we can agree on something. sounds like gs choi wil writeup the counterproposal. geott PS. on the way to the elevator i mentioned to hk lim i heard the monday intelsamsung/rambus meeting went well except for die size. he said it was an issue and hoped they could get down to 15%. PPS. we talked about chip-scale packaging before the meeting started. they Understand now the RIMM is the standard for main memory, not the chip package. they understand that as die shrink it's hard to hold to the same footprint for a csp, unless they make the die bigger, so they might have to redesign the module at some point for a new-footprnt csp. this didn't ‘seem to be a big issue to them. they said they thought intel wanted everyone to have the same csp footprint. | said that intel realizes over time manufacturers will have different csp packages and different Sizessfootprints and that is great ft means they can all optimize for lowest cost. but that intially intel (and rambus) would prefer to have everyone for the frst generation have the same footprint f possible to ‘minimize engineering/compatibllty issues for intial production. PPPS. i'm stuck in kimpo airport for the afternoon but the good news is all R 235254 eal hd (OUTSIDE COUNSEL ONLY ¢x0956-003