LONDON -- Neil Bush, brother of United States President George Bush, has a contract worth $2 million to provide advice to Chinese foundry Grace Semiconductor Manufacturing Corp. according to a report on the website of the Houston Chronicle.
The account refers to exhibit 24 in the files of Neil Bush's divorce from Sharon Bush, and describes it as a two-page contract between Bush and Grace Semiconductor Manufacturing Co. dated August 15, 2002. The account also quotes Sharon Bush's lawyer asking Neil Bush questions about what he did for Grace Semiconductor Manufacturing.
Under the terms of the contract Bush has two duties, the report said: "To provide GSMC from time to time with business strategies and policies; latest information and trends of the related industry, and other expertized advices (sic)." And "to attend Directors' Board Meetings."
The contract stipulates that Bush be paid $400,000 a year in company preferred stock for five years, for a total of $2 million in stock, the report said. Secondly the contract states that Neil Bush is be paid to $10,000 to cover expenses for each Grace Semiconductor board of directors meeting he attends, the report said.
However, the report added that it is unclear whether Neil Bush has started receiving the stock and referred to a sworn deposition from March 2003 in which Neil Bush noted that the contract provided for the first $400,000 stock installment to be paid, "within one month after the first Board Meeting of GSMC for the year 2002."
Grace Semiconductor Manufacturing is one of several companies in mainland China that is intent on spending hundreds of millions of dollars on capital expenditure to become a world player in the semiconductor industry. Grace began processing wafers at a fab in Shanghai in September and executives expect the company to be producing 10,000 200-mm diameter wafers a month by the end of 2003 (see September 23 story).
The Houston Chronicle article quoted Neil Bush admitting he has no educational background in semiconductors but arguing that he is experienced in Asian business. The article quotes Neil Bush saying: "I feel I've had pretty extensive business interaction over there and that's what I would bring, just general business knowledge."
The Houston Chronicle article could be found here when this story was first posted.