Cree Inc. of Durham, N.C., has signed a three-year agreement with Osram Opto Semiconductors GmbH of Regensburg, Germany, under which Osram will purchase Cree's LED chips, including the standard, midbright and Xbright lines. The initial agreement on pricing, volume and product mix will be reviewed and adjusted regularly during the contract period, which extends through June 2008. The arrangement was designed to allow the companies to react quickly to changes in the industry and to enhance their ability to attract new business.