EXHIBIT 10.22

Full and Final Releasebetween NeoMagic International Corporation, a Cayman Island company, with offices c/o Caledonian Bank & Trust Ltd.,
Ground Floor, Caledonian House, Mary Street, P.O. Box 1043, Georgetown, Grand Cayman B.W. I. (hereinafter referred to as "NeoMagic") and Infineon
Technologies AG, St. Martin Str. 53, 81669 Munich, Germany (hereinafter referred to as "Infineon") (hereinafter each individually referred to as a
"Party" and collectively referred to as the "Parties") dated as of September 9, 2002.

WHEREAS, NeoMagic and Infineon have entered into the Wafer Supply Agreement as of March, 15, 1999 ("Wafer Supply
Agreement"), according to which Infineon designs and manufactures processed wafers for NeoMagic;

WHEREAS, the Parties have amended the Wafer Supply Agreement by the General Amendment to the Wafer Supply Agreement as of January, 17,
2001 to provide for the design, fabrication and supply of future products (hereinafter "Amendment");

WHEREAS, NeoMagic and Infineon have entered into the Product Sourcing Agreement as of January, 17, 2001 (hereinafter "Product Sourcing
Agreement"), according to which Infineon agreed to make investments in her manufacturing site in Dresden to enlarge her capacity of wafer supply and NeoMagic agreed to establish an irrevocable Standby
Letter of Credit with the Bank of America in the name of Infineon Technologies AG, Munich, in the amount of US $15,000,000 (in words: fifteen million US dollars).

WHEREAS, under the Product Sourcing Agreement, the Parties agreed to reduce the amount of the irrevocable Standby Letter of Credit
quarterly by US $300 for every processed wafer actually delivered to and paid by NeoMagic to Infineon;

WHEREAS, the Parties agreed that Infineon on February, 27, 2004 should be entitled to draw on the outstanding sum of the irrevocable
Standby Letter of Credit;

WHEREAS, the Parties entered into the First Amendment to the Product Sourcing Agreement ("First
Amendment"), according to which Infineon agreed that if NeoMagic were to replace the existing letter of credit with a new letter of credit not to draw under the existing letter
of credit provided the new letter of credit contained the same terms and conditions of the existing letter of credit and issued by a bank acceptable to Infineon;

WHEREAS, NeoMagic has not ordered a single processed wafer so that the full sum of US $15,000,000 is still outstanding in the irrevocable
Standby Letter of Credit;

WHEREAS, NeoMagic and Infineon wish to terminate the Wafer Supply Agreement Agreement, the Amendment, the Product Sourcing Agreement and
the First Amendment (all four agreements hereinafter called "the Four Agreements") and to finally settle all differences between the Parties arising out
of or in connection therewith;

AND WHEREAS, Infineon and NeoMagic have agreed to enter into this full and final Release (hereinafter, the
"Release") in order to release one another and their respective affiliates from all claims and obligations (except for those expressly set forth in this
Release) that they may have against one another under the Four Agreements.

NOW THEREFORE, in consideration of the premises, obligations and covenants contained herein, the receipt and sufficiency of which are
hereby acknowledged, Infineon and NeoMagic agree as follows:

1.Termination of Agreements.

(a)  The
Four Agreements are hereby terminated.

(b)  Notwithstanding
anything to the contrary contained herein, the parties agree that Section 2.2, Part V, Part VI, Section 7.1 and 7.6 of the Wafer Supply Agreement and
Section 5 and 6 of the Product Sourcing Agreement shall survive termination of the Four Agreements.

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2.Full Release.Subject to Section 8 of this Release, each Party releases and forever discharges the other Party, its
respective directors, officers, employees, affiliates, subsidiaries and related companies and its successors and assigns, from any and all obligations, actions, causes of action, claims and demands
for, upon or by reason of any amount owing, damage or loss whatsoever, existing up to and including the date hereof, which a Party or its agents, affiliates, successors or assigns or any of them ever
had, now have or hereafter may, can or shall have pursuant to or relating to the Four Agreements and any other agreement, correspondence, document or other communication (whether written or oral)
exchanged by or between the Parties about the Four Agreements (collectively, the "Additional Documents").

3.Covenants, Representations and Warranties.Each party hereby specifically covenants, represents and warrants to the other
Party that, except as specified in Sections 4 and 8 of this Release, it has no further claims against the other Party for or arising out of the Four Agreements or the Additional Documents. In the
event that a Party should hereafter make any claim or demand or commence, or threaten to commence any action, claim or proceeding, or make any complaint against the other Party arising out of or in
relation to the Four Agreements or the Additional Documents, or otherwise as specified in Section 2 of this Release, this Release may be raised as an estoppel and complete bar to any such claim,
demand, action, proceeding or complaint.

4.Additional Obligations of the Parties:

(a)  Consideration.



(b)Registration Rights.



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(c)Registration Procedures.In connection with the Shelf Registration Statement, the following provisions shall
apply:



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(d)Registration Expenses.NeoMagic shall bear all fees and expenses incurred in connection with the performance
of its obligations under this Section 4 and shall bear or reimburse Infineon for the reasonable fees and disbursements of Infineon's counsel in connection therewith.

(e)Liquidated Damages for Failure to Register.



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5.Lock-Up Agreement.

(a)  Infineon
agrees that it shall not sell, offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or effect any
hedging or other transaction which is designed to result in any of the above transactions (each, a "Sale") any Shares prior to the Release Date; providedthat Infineon may, prior to the Release Date, (i) engage in private resales of such Shares not effected through the Nasdaq National Market and
(ii) transfer the Shares to a subsidiary, parent, general partner, limited partner, or other affiliate of Infineon,providedin each of clauses (i) and
(ii) that such transferee agrees to be bound to the remaining standoff period described in this Section 5. Nothwithstanding the foregoing, this covenant shall expire and Infineon shall be permitted to
sell, transfer or otherwise dispose of the Shares in the event of a Special Release Event. A "Special Release Event" shall mean the announcement by
NeoMagic of any consolidation or merger of NeoMagic with or into any other corporation or other entity or person, or any other corporate reorganization, other than any such transaction following which
the stockholders of NeoMagic immediately prior to such consolidation, merger or reorganization, retain, by virtue of their equity interest in NeoMagic, at least fifty percent (50%) of the voting power
of the surviving corporation immediately after such consolidation, merger or reorganization, or any transaction or series of related transactions to which NeoMagic is a party in which in excess of
fifty percent (50%) of NeoMagic's voting power is transferred or a sale, lease or other disposition of all or substantially all of the assets of NeoMagic.

(b)  Notwithstanding
the above, except as provided in subsections 5(a)(i) and 5(a)(ii) above, Infineon agrees that, during any three (3) month period, it shall not effect any
Sale of any Shares in excess of the greater of (i) 250,000 Shares (as adjusted for any stock splits, combinations, stock dividends or
similar transactions) and (ii) that number of Shares equal to one-tenth of the aggregate volume of trading in shares of NeoMagic common stock reported through the automated quotation system of the
Nasdaq National Market and/or all national securities exchanges during the three (3) month period ending on the date immediately prior to such Sale. This covenant shall expire as of the date that
Infineon has transferred or otherwise disposed of all of the Shares.

6.Consent to eliminate the Standby Letter of Credit.Infineon agrees to give its written consent to the Bank of America that
NeoMagic may eliminate the irrevocable Standby Letter of Credit as soon as Infineon has received full payment of the US $1,500,000 and 1,667,000 shares of Neo Magic's common stock as further specified
in Section 4(a).

7.Return of Information.The receiving party shall promptly return to the disclosing party all confidential information
received under the Agreements, including any copies thereof in its possession, within forty-five (45) days after termination.

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8.Continuing Obligations.Notwithstanding anything to the contrary in this Release, nothing in this Release shall release the
Parties from their respective obligations, nor detract from their respective rights, as described in Section 4 and 1.2 of this Release. Each Party acknowledges and agrees that the terms of this
Release apply only to the Four Agreements and Additional Documents and not to any other agreements between the Parties, currently in effect or that may be entered into between the Parties in the
future, that is not related to this Release.

9.Confidentiality.This Release is a confidential document. Each Party agrees to keep this Release and its contents
confidential and shall only disclose such information (i) to its agents, employees or representatives who have a need to know such information, for the purpose of performance under this Release and
exercising the rights granted under this Release and who have entered into a non-disclosure agreement at least as protective of the confidential nature of the Release as are these terms, and they
shall keep this information confidential to third parties with the same degree of care as they use with respect to their own confidential information. This obligation shall not apply to information,
which is or becomes public knowledge or which is independently developed or lawfully received from a third party or (ii) to the extent required by applicable law or during the course of or in
connection with any litigation, arbitration or other proceeding based upon or in connection with the subject matter of this Release.

10.Dispute Resolution.All disputes arising out of or in connection with this Release, including any question regarding the
existence, validity or termination of this Release, shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce, Paris (hereinafter, the
"Rules") by three arbitrators in accordance with said Rules. The seat of arbitration shall be Zuerich, Switzerland. The procedural law of Switzerland
shall apply where the Rules are silent. The language to be used in the arbitration proceeding shall be English.

11.Applicable Law.This Release shall be governed by and construed in accordance with the law in Switzerland without
reference to its conflict of law provisions. The application of the United Nations Convention on Contracts for the International Sale of Goods of April 11, 1980 shall be excluded.

12.Miscellaneous.

(a)Modification.This Release, including this Section 13.a, cannot be modified except by written instrument
signed by the Parties. This requirement of written form can only be waived in writing.

(b)Severability.If any provision contained in this Release is or becomes ineffective or is held to be invalid
by a competent authority or court having final jurisdiction thereover, all other provisions of this Release shall remain in full force and effect and there shall be substituted for the said invalid
provision a valid provision having an economic effect as similar as possible to the original provision.

(c)Entire Agreement.This Release constitutes the entire understanding and agreement between the Parties hereto
with respect to the subject matter hereof and shall supersede and cancel all previous agreements, negotiations and commitments, either oral or written, relating hereto.

(d)Governing Language.The governing language of this Release shall be English.

(e)Counterparts.This Release may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

13.Acknowledgment.NeoMagic and Infineon each understands and agrees that the terms of this Release are fully understood by
it, that the consideration stated herein, the receipt and sufficiency of which are hereby acknowledged, is full consideration of this Release and that the said consideration is accepted voluntarily
for the purpose of making full and final compromise, adjustment and settlement of all claims for amounts owing, interest costs incurred, and losses and damages resulting, or to result, from the Four
Agreements and Additional Documents, or otherwise as described in Section 2 of this Release.

[Signature
Page to Follow]

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IN WITNESS WHEREOF, the Parties hereto have caused this Release to be executed in duplicate by their respective duly authorized
representatives as of the date set forth above:

|Neo Magic International Corporation |  | Infineon Technologies AG
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|By:                                 |  |                         
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|Name:                               |  |                         
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|Date:                               |  |                         
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