##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K/A


(Amendment No. 1)







|  |                                              
|- | ---------------------------------------------
|þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934


For the year ended December 31, 2004


or




|  |                                                  
|- | -------------------------------------------------
|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period
from                     to                     .


Commission file number 000-31803





Transmeta Corporation


(Exact name of registrant as specified in its charter)


|                         |  |                                  
|------------------------ |  | ---------------------------------
|Delaware                 |  | 77-0402448                       
|(State of Incorporation) |  | (IRS Employer Identification No.)

3990 Freedom Circle, Santa Clara, CA 95054


(Address of
Principal Executive Offices, including zip code)


(408) 919-3000


(Registrants Telephone Number, including area code)


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


Common Stock, $0.00001 par value per share Stock
Purchase Rights


þ o


þ


þ o






DOCUMENTS INCORPORATED BY REFERENCE












---










TRANSMETA CORPORATION


FISCAL YEAR 2004 FORM 10-K/ A


INDEX


|                 |  |                                                                                                    |    |      |    | 
|---------------- |  | -------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|Item             |  |                                                                                                    |    | Page |   
|                 |  |                                                                                                    |    |      |   
|Explanatory Note |  |                                                                                                    | 3  |     
|PART II         
|                
|Item 9A          |  | Controls and Procedures                                                                            |    |      | 4  | 
|PART III        
|                
|Item 10          |  | Directors and Executive Officers of the
    Registrant                                             |    |      | 10 | 
|Item 11          |  | Executive Compensation                                                                             |    |      | 15 | 
|Item 12          |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters |    |      | 22 | 
|Item 13          |  | Certain Relationships and Related
    Transactions                                                 |    |      | 25 | 
|Item 14          |  | Principal Accountant Fees and Services                                                             |    |      | 26 | 
|PART IV         
|                
|Item 15          |  | Exhibits, Financial Statement Schedules and
    Reports on Form 8-K                                |    |      | 27 | 
|Signatures       |  |                                                                                                    | 30 |     
|EXHIBIT 23.02   
|EXHIBIT 31.01   
|EXHIBIT 31.02   
|EXHIBIT 32.01   
|EXHIBIT 32.02   



tm tm tm


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TRANSMETA CORPORATION





EXPLANATORY NOTE






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We previously disclosed in the Initially Filed Form 10-K
    that we intended to include the required managements
    report on internal control over financial reporting and our
    independent registered public accounting firms attestation
    report concerning our internal control over financial reporting
    required under Section 404 of the Sarbanes-Oxley Act of
    2002 (Sarbanes-Oxley) and the related SEC rules and
    regulations in an amendment to our Annual Report on
    Form 10-K in accordance with the SECs exemptive order
    in SEC Release No. 50754. That exemptive order provides
    qualified issuers with a 45-day extension for filing such
    reports and attestations. We have recently completed our
    analysis, documentation and testing of our system of internal
    control over financial reporting and have prepared our report on
    the effectiveness of our internal control over financial
    reporting, and our independent registered public accounting
    firm, Ernst & Young LLP, has completed its audit of
    managements assessment of the effectiveness of our
    internal control over financial reporting and the effectiveness
    of internal control over financial reporting, each of which are
    required to be included in our Annual Report on Form 10-K
    for the fiscal year ended December 31, 2004 under
    Section 404 of Sarbanes-Oxley and the SECs related
    rules and regulations. Accordingly, we are filing this Amendment
    No. 1 to include such reports.
|
| |  | This Amendment No. 1 is also being filed to include
    responses to the items required by Part III, which were
    originally expected to be incorporated by reference to our
    definitive Proxy Statement to be delivered to our stockholders
    in connection with our 2005 Annual Meeting of Stockholders.
    Inasmuch as the definitive Proxy Statement for our annual
    stockholders meeting will not be filed with the SEC within
    120 days after our fiscal year end, such information may
    not be incorporated by reference and is instead included in this
    Amendment No. 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 





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PART II







|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures



|    |                                   
|--- | ----------------------------------
|(a) | Disclosure Controls and Procedures







|    |                                                                     
|--- | --------------------------------------------------------------------
|(b) | Managements Report on Internal Control Over Financial
    Reporting









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##### Table of Contents







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A material weakness existed in our financial statement close
    process for preparing and compiling our financial statements for
    external reporting, including (a) ineffective controls to
    ensure timely review of all account reconciliations and
    significant financial statement accounts; (b) inadequate
    controls to determine that financial spreadsheets are accurately
    calculated and protected against unauthorized changes; and
    (c) ineffective controls over the review of financial
    statements for inclusion in periodic external financial reports.      
|
| |  | A material weakness existed in our contract administration
    process, including (a) lack of a centralized contract
    administration function; (b) lack of a formal contract
    approval process and signature authority matrix; and
    (c) lack of a process to review all contractual commitments
    in order to properly capture and record their effects on the
    financial statements and related disclosures.                                                                                                                                                                      
|
| |  | A material weakness existed in our inventory cost accounting
    process, including (a) ineffective control processes for
    determining excess and obsolescence and lower-of-cost-or-market
    inventory write-offs; (b) ineffective management review of
    cost accounting processes; (c) inadequate controls over the
    completeness and accuracy of information calculated using manual
    spreadsheets for inventory costing and related cost-of-sales
    variance calculations; and (d) inadequate controls for
    verification of inventory and components held by third parties.
|
| |  | A material weakness existed in our control environment relating
    to inadequate staffing of our technical accounting function,
    including a lack of sufficient personnel with skills, training
    and familiarity with certain complex technical accounting
    pronouncements that have or may affect our financial statements
    and disclosures.                                                                                                                                                                                                                                       
|
| |  | A material weakness existed in our processes to determine the
    existence of fixed assets recorded on our balance sheet,
    including inadequate controls over the monitoring and tracking
    of our fixed assets and the physical verification of our fixed
    assets.                                                                                                                                                                                                                                                                                                                     
|
| |  | A material weakness existed in our segregation of duties among
    our limited finance department staff, including lack of internal
    controls in our accounts payable function sufficient to prevent
    or timely detect error or fraud that could have had a material
    impact on our financial statements.                                                                                                                                                                                                                                                                               







|    |                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------
|(c) | Report of Independent Registered Public Accounting Firm on
    Internal Control Over Financial Reporting







5



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A material weakness existed in Transmeta Corporations
    financial statement close process for preparing and compiling
    its financial statements for external reporting, including
    (a) ineffective controls to ensure timely review of all
    account reconciliations and significant financial statement
    accounts; (b) inadequate controls to determine that
    financial spreadsheets are accurately calculated and protected
    against unauthorized changes; and (c) ineffective controls
    over the review of financial statements for inclusion in
    periodic external financial reports.
|
| |  | A material weakness existed in Transmeta Corporations
    contract administration process, including (a) lack of a
    centralized contract administration function; (b) lack of a
    formal contract approval process and signature authority matrix;
    and (c) lack of a process to review all contractual
    commitments in order to properly capture and record their
    effects on the financial statements and related disclosures.                                                                                                                                                                    
|
| |  | A material weakness existed in Transmeta Corporations
    inventory cost accounting process, including
    (a) ineffective control processes for determining excess
    and obsolescence and lower-of-cost-or-market inventory
    write-offs; (b) ineffective management review of cost
    accounting processes; (c) inadequate controls over the
    completeness and accuracy of information calculated using manual
    spreadsheets for                                                                                                                                                                     

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | inventory costing and related cost-of-sales variance
    calculations; and (d) inadequate controls for verification
    of inventory and components held by third parties.                                                                                                                                                                                                                                
|
| |  | A material weakness existed in Transmeta Corporations
    control environment relating to inadequate staffing of its
    technical accounting function, including a lack of sufficient
    personnel with skills, training and familiarity with certain
    complex technical accounting pronouncements that have or may
    affect the Transmeta Corporations financial statements and
    disclosures.
|
| |  | A material weakness existed in Transmeta Corporations
    processes to determine the existence of fixed assets recorded on
    its balance sheet, including inadequate controls over the
    monitoring and tracking of its fixed assets and the physical
    verification of its fixed assets.                                                                                                          
|
| |  | A material weakness existed in Transmeta Corporations
    segregation of duties among its limited finance department
    staff, including lack of internal controls in its accounts
    payable function sufficient to prevent or timely detect error or
    fraud that could have had a material impact on the financial
    statements of the Company.                                                 







| |                          
| | -------------------------
| | /s/ Ernst & Young
    LLP







|    |                                                     
|--- | ----------------------------------------------------
|(d) | Changes in Internal Control Over Financial Reporting

Changes in Internal Control Over Financial Reporting.


Detection of Material Weaknesses.


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Remediation efforts.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | To improve our financial statement close process, we are
    (a) establishing a more efficient and effective
    responsibilities matrix for our close process to provide timely
    and accurate completion of financial reporting as well as timely
    review and approval by the controller of all balance sheet
    reconciliations and account balances, respectively;
    (b) assembling an inventory of financial spreadsheets used
    to support preparation of our financial statements and assigning
    responsibility to review all such spreadsheets for calculational
    integrity and security access limitation; and (c) planning
    a transition from our SAP financial system to a new financial
    system which will be simpler to maintain, less costly to modify,
    and better aligned with our financial statement requirements.
|
| |  | To improve our contract administration process, we are
    initiating a centralized contract administration function. The
    purpose of such function will include documenting the contract
    approval process and determining that all contractual
    commitments are properly provided to the finance department. As
    an interim measure, authorization to execute contracts on our
    behalf is limited to the chief executive officer, the chief
    financial officer, or the general counsel.                                                                                                                                                                                                                                                                                                                                                  
|
| |  | To improve our inventory cost accounting process, during the
    fourth quarter of 2004, (a) we engaged an inventory cost
    accounting consultant to review our significant cost accounting
    entries and to assist in the re-design of the inventory analysis
    and reporting process; and (b) the chief financial officer
    established a product pricing committee composed of sales,
    marketing, manufacturing, and finance                                                                                                                                                                                                                                                                                                                                                                                                                   

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | staff with the purpose to formally set product pricing relative
    to the market, costs to build, and available inventory, and to
    establish standard terms and conditions, which are all factors
    used in the development of inventory valuation. Additionally, as
    noted above, a new financial system will be implemented to
    include a re-designed cost accounting system.                           
|
| |  | To improve our technical accounting function, we are developing
    technical expertise to support the development of our business
    both by training our current staff and by adding, as
    appropriate, permanent staff with such technical accounting
    skills and internal control process background as may be
    required.                                                                                
|
| |  | To improve our fixed asset system tracking, we will initiate a
    formal fixed asset tagging system that can be tied to our fixed
    asset register, and we will periodically conduct physical
    inventories of fixed assets to verify the existence of assets
    recorded our balance sheet.                                                                                                                    
|
| |  | To improve our segregation of duties in accounts payable, we are
    in the process of establishing additional controls over the
    authorizations and approvals of transactions and expenditures,
    and we are currently evaluating our resource requirements in
    order to build a well-controlled and effective organization and
    to ensure segregation of key functions within our finance
    department.









|    |                                                  
|--- | -------------------------------------------------
|(e) | Inherent Limitations on Effectiveness of Controls



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PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant

Directors






|                         |  |     |    |  |                      |                                                                                                         |                |  |      | 
|------------------------ |  | --- | -- |  | -------------------- | ------------------------------------------------------------------------------------------------------- | -------------- |  | ---- | 
|Name of Director         |  | Age |    |  | Principal Occupation |                                                                                                         | Director Since | 
|                         |  |     |    |  |                      |                                                                                                         |                | 
|R. Hugh Barnes           |  |     | 59 |  |                      | Independent Technology Consultant                                                                       |                |  | 1998 | 
|David R. Ditzel          |  |     | 48 |  |                      | Vice Chairman of the Board and Chief Technology Officer of
    Transmeta                                |                |  | 1995 | 
|Murray A. Goldman(3)     |  |     | 67 |  |                      | Independent Technology Consultant                                                                       |                |  | 1998 | 
|Arthur L. Swift          |  |     | 46 |  |                      | President and Chief Executive Officer of Transmeta                                                      |                |  | 2005 | 
|William P. Tai(1)(2)(3)  |  |     | 42 |  |                      | General Partner of Charles River Ventures and Managing Director
    of Institutional Venture Management |                |  | 1995 | 
|T. Peter Thomas(1)(2)(3) |  |     | 58 |  |                      | Managing Director of Institutional Venture Management                                                   |                |  | 1995 | 
|Rick Timmins(2)          |  |     | 52 |  |                      | Vice President, Worldwide Sales and Service Finance of Cisco
    Systems, Inc.                          |                |  | 2003 | 






|    |                                                             
|--- | ------------------------------------------------------------
|(1) | Member of the compensation committee.                       
|   
|(2) | Member of the audit committee.                              
|   
|(3) | Member of the nominating and corporate governance committee.

R. Hugh Barnes


David R. Ditzel


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Murray A. Goldman


Arthur L. Swift


William P. Tai


T. Peter Thomas


Rick Timmins


11



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Executive Officers




|                    |  |     |    |  |          |                                              
|------------------- |  | --- | -- |  | -------- | ---------------------------------------------
|Name                |  | Age |    |  | Position
|                    |  |     |    |  |         
|Arthur L. Swift     |  |     | 46 |  |          | President and Chief Executive Officer        
|David R. Ditzel     |  |     | 48 |  |          | Chief Technology Officer                     
|Patrick J. Gainer   |  |     | 41 |  |          | Vice President of Software Engineering       
|John OHara Horsley |  |     | 43 |  |          | Vice President, General Counsel and Secretary
|Mark R. Kent        |  |     | 45 |  |          | Chief Financial Officer                      
|Andre Kowalczyk     |  |     | 58 |  |          | Vice President of VLSI Engineering           
|Takashi Murayama    |  |     | 54 |  |          | Vice President and President of Transmeta KK 

Arthur L. Swift


David R. Ditzel


Patrick J. Gainer


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John OHara Horsley


Mark R. Kent


Andre Kowalczyk


Takashi Murayama


Audit Committee of the Board of Directors


http://www.transmeta.com/corporate/ir/corp governance.html


Stockholder Director Nominations




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Section 16(a) Beneficial Ownership Reporting
Compliance




Code of Ethics


http://www.transmeta.com/corporate/ir/corpgovernance.html.


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|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation



Summary Compensation Table


|                            |                           |      |      |                     |        |              |                     |         |                  |   |              |           |  |         |        |         |              |  |         |           |  |  |  |   | 
|--------------------------- | ------------------------- | ---- | ---- | ------------------- | ------ | ------------ | ------------------- | ------- | ---------------- | - | ------------ | --------- |  | ------- | ------ | ------- | ------------ |  | ------- | --------- |  |  |  | - | 
|                            |                           |      |      |                     |        | Long-Term    |                     |         |                 
|                            |                           |      |      | Annual Compensation |        |              | Compensation Awards |         |                  |  
|                            |                           |      |      |                     |        |              | Shares of Common    |         |                  |  
|                            |                           |      |      |                     |        | Other Annual |                     |         | Stock Underlying |   |              | All Other | 
|Name and Principal Position |                           | Year |      |                     | Salary |              |                     | Bonus   |                  |   | Compensation |           |  | Options |        |         | Compensation | 
|                            |                           |      |      |                     |        |              |                     |         |                  |   |              |           |  |         |        |         |              | 
|Matthew R. Perry(1)         |                           |      | 2004 |                     |        | $            | 370,000             |         |                  | $ | 174,348      |           |  | $       | 85,447 | (7)     |              |  | 200,000 |           |  |  |  |  
|                            | Chief Executive           |      |      | 2003                |        |              | $                   | 350,000 |                  |   | $            | 141,469   |  |         | $      | 117,915 | (2)          |  |         | 1,000,000 |  |  |  |  | 
|                            | Officer and President     |      |      | 2002                |        |              | $                   | 238,750 |                  |   | $            | 191,250   |  |         | $      | 35,783  | (3)          |  |         | 3,000,000 |  |  |  |  | 
|                           
|David R. Ditzel             |                           |      | 2004 |                     |        | $            | 300,000             |         |                  | $ | 159,653      |           |  |         |       |         |              |  | 100,000 |           |  |  |  |  
|                            | Chief Technology          |      |      | 2003                |        |              | $                   | 286,000 |                  |   | $            | 125,164   |  |         |        |        |              |  |         | 100,000   |  |  |  |  | 
|                            | Officer                   |      |      | 2002                |        |              | $                   | 275,016 |                  |   | $            | 64,410    |  |         |        |        |              |  |         | 370,000   |  |  |  |  | 
|                           
|John OHara Horsley         |                           |      | 2004 |                     |        | $            | 265,000             |         |                  | $ | 123,330      |           |  |         |       |         |              |  | 125,000 |           |  |  |  |  
|                            | Vice President,           |      |      | 2003                |        |              | $                   | 245,750 |                  |   | $            | 80,801    |  |         |        |        |              |  |         | 160,000   |  |  |  |  | 
|                            | General Counsel           |      |      | 2002                |        |              | $                   | 211,208 |                  |   | $            | 37,555    |  |         |        |        |              |  |         | 400,000   |  |  |  |  | 
|                            | and Secretary             |      |      |                     |        |              |                     |         |                  |   |              |           |  |         |        |         |              |  |         |           |  |  |  |   | 
|                           
|Takashi Murayama(4)         |                           |      | 2004 |                     |        | $            | 339,868             |         |                  | $ | 79,649       |           |  | $       | 32,696 | (6)     |              |  | 100,000 |           |  |  |  |  
|                            | Vice President and        |      |      | 2003                |        |              | $                   | 300,200 |                  |   | $            | 6,183     |  |         | $      | 28,283  | (6)          |  |         | 17,500    |  |  |  |  | 
|                            | President of Transmeta KK |      |      | 2002                |        |              | $                   | 93,348  |                  |   |              |          |  |         | $      | 11,549  | (6)          |  |         | 240,000   |  |  |  |  | 
|                           
|Arthur L. Swift(5)          |                           |      | 2004 |                     |        | $            | 265,000             |         |                  | $ | 122,931      |           |  |         |       |         |              |  | 125,000 |           |  |  |  |  
|                            | Senior Vice President     |      |      | 2003                |        |              | $                   | 193,182 |                  |   | $            | 61,625    |  |         |        |        |              |  |         | 825,000   |  |  |  |  | 
|                            | of Marketing              |      |      | 2002                |        |              |                     |        |                  |   |              |          |  |         |        |        |              |  |         |          |  |  |  |  | 






|    |                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Dr. Perry served as President and Chief Executive Officer
    from April 2002 to March 2005, at which time he resigned as
    President and Chief Executive Officer and as a director of
    Transmeta.                                                                     
|   
|(2) | Includes reimbursements of approximately $90,000 for housing and
    related tax payments.                                                                                                                                                                                  
|   
|(3) | Represents relocation expense.                                                                                                                                                                                                                                              
|   
|(4) | Mr. Murayamas employment commenced with us in August
    2002.                                                                                                                                                                                                             
|   
|(5) | Mr. Swifts employment commenced with us in March 2003
    in the position of Senior Vice President of Marketing.
    Mr. Swift served in such capacity until March 2005, at
    which time he became President and Chief Executive Officer and a
    director of Transmeta.
|   
|(6) | Includes reimbursement of national social insurance and related
    tax payments.                                                                                                                                                                                           
|   
|(7) | Represents housing and related tax payments.                                                                                                                                                                                                                                

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Option Grants in Fiscal 2004




Option Grants in Fiscal 2004


|                    |  |               |         |  |                 |  |      |                |  |                      |            |                  |  |    |            |  |     |   |         |  |  |   |         | 
|------------------- |  | ------------- | ------- |  | --------------- |  | ---- | -------------- |  | -------------------- | ---------- | ---------------- |  | -- | ---------- |  | --- | - | ------- |  |  | - | ------- | 
|                    |  |               |         |  |                 |  |      |                |  | Potential Realizable |           
|                    |  |               |         |  |                 |  |      |                |  | Value at Assumed     |           
|                    |  |               |         |  |                 |  |      |                |  | Annual Rates of      |           
|                    |  | Number of     |         |  | Percentage of   |  |      |                |  |                      |            | Stock Price      | 
|                    |  | Securities    |         |  | Total Transmeta |  |      |                |  |                      |            | Appreciation for | 
|                    |  | Underlying    |         |  | Options Granted |  |      |                |  |                      |            | Option Term(3)   | 
|                    |  | Options       |         |  | to Employees in |  |      | Exercise Price |  |                      | Expiration |                  |  |    |           
|Name                |  | Granted(1)(4) |         |  | 2004(2)         |  |      | Per Share      |  |                      | Date       |                  |  | 5% |            |  | 10% |  
|                    |  |               |         |  |                 |  |      |                |  |                      |            |                  |  |    |            |  |     |  
|Matthew R. Perry    |  |               | 200,000 |  |                 |  | 1.70 | %              |  | $                    | 2.15       |                  |  |    | 05/26/2014 |  |     | $ | 270,331 |  |  | $ | 685,018 | 
|David R. Ditzel     |  |               | 100,000 |  |                 |  | 0.85 | %              |  | $                    | 2.15       |                  |  |    | 05/26/2014 |  |     | $ | 135,165 |  |  | $ | 342,509 | 
|John OHara Horsley |  |               | 125,000 |  |                 |  | 1.06 | %              |  | $                    | 2.15       |                  |  |    | 05/26/2014 |  |     | $ | 168,957 |  |  | $ | 428,136 | 
|Takashi Murayama    |  |               | 100,000 |  |                 |  | 0.85 | %              |  | $                    | 2.15       |                  |  |    | 05/26/2014 |  |     | $ | 135,165 |  |  | $ | 342,509 | 
|Arthur L. Swift     |  |               | 125,000 |  |                 |  | 1.06 | %              |  | $                    | 2.15       |                  |  |    | 05/26/2014 |  |     | $ | 168,957 |  |  | $ | 428,136 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The options shown in the above table were granted at an exercise
    price equal to 100% of the fair market value of our common stock
    at the date of grant and will expire ten years from the date of
    grant.                                                                                                                                                                                                                                                                                                                                                              
|   
|(2) | During fiscal 2004, we granted to our employees options to
    purchase a total of 11,775,000 shares of common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(3) | Potential realizable values are calculated by multiplying the
    number of shares of common stock subject to a given option by
    the exercise price; assuming that the amount derived from that
    calculation compounds at the annual 5% or 10% rates shown in the
    table for the entire ten-year term of the option; and
    subtracting from that result the total option price. The 5% and
    10% assumed annual rates of stock appreciation are required by
    the rules of the SEC and do not reflect our estimate or
    projection of future common stock prices.
|   
|(4) | This option vests monthly during the 48 month period
    starting May 27, 2004 at the rate of 1/48th of the shares
    each month, so long as he remains employed by us.                                                                                                                                                                                                                                                                                                                                                                                                          

Aggregated Option Values




|                    |  |                        |           |  |                              |  |           |             |  |   |               |  |  |   |         | 
|------------------- |  | ---------------------- | --------- |  | ---------------------------- |  | --------- | ----------- |  | - | ------------- |  |  | - | ------- | 
|                    |  | Number of Securities   |           |  |                             
|                    |  | Underlying Unexercised |           |  | Value of Unexercised In-the- | 
|                    |  | Options at Fiscal      |           |  | Money Options at Fiscal      | 
|                    |  | Year End(#)            |           |  | Year End(1)($)               | 
|                    |  |                        |           |  |                              | 
|Name                |  | Exercisable            |           |  | Unexercisable                |  |           | Exercisable |  |   | Unexercisable | 
|                    |  |                        |           |  |                              |  |           |             |  |   |               | 
|Matthew R. Perry    |  |                        | 2,895,832 |  |                              |  | 1,304,168 |             |  | $ | 469,333       |  |  | $ | 170,667 | 
|David R. Ditzel     |  |                        | 564,374   |  |                              |  | 255,626   |             |  | $ | 60,496        |  |  | $ | 20,904  | 
|John OHara Horsley |  |                        | 797,603   |  |                              |  | 387,397   |             |  | $ | 103,058       |  |  | $ | 34,142  | 
|Takashi Murayama    |  |                        | 169,009   |  |                              |  | 188,491   |             |  | $ | 60,299        |  |  | $ | 35,951  | 
|Arthur L. Swift     |  |                        | 394,791   |  |                              |  | 555,209   |             |  | $ | 160,406       |  |  | $ | 204,094 | 






|    |                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | These values have not been, and may never be, realized. The
    values are based, with respect to options to purchase shares of
    our common stock, on the positive spread between the respective
    exercise prices of outstanding stock options and the closing
    price of our common stock on December 31, 2004 on the
    NASDAQ National Market ($1.63 per share).

16



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Director Compensation






Employment Contracts, Termination of Employment and Change in
Control Arrangements




| |                     
| | --------------------
| | Employment Contracts





17



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##### Table of Contents





| |                              
| | -----------------------------
| | Change in Control Arrangement



|                                                            |  |                                                                                                            |  |                                     |                               | 
|----------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------- |  | ----------------------------------- | ----------------------------- | 
|Position/Category                                           |  | Lump Sum Cash Severance                                                                                    |  | Option and Restricted Stock Vesting |                              
|                                                            |  |                                                                                                            |  |                                     |                              
|Chief Executive Officer                                     |  | 2 years base salary and 200% of target annual bonus for the
    year of termination of employment          |  |                                     | full acceleration of vesting  | 
|Category 1 Person (as designated by our board of directors) |  | 11/2 years
    base salary and 112.5% of target annual bonus for the year of
    termination of employment |  |                                     | 2 years of additional vesting | 
|Category 2 Person (as designated by our board of directors) |  | 1 year base salary and 50% of target annual bonus for the
    year of termination of employment            |  |                                     | 1 year of additional vesting  | 
|Category 3 Person (as designated by our board of directors) |  | 6 months base salary and 25% of target annual bonus for the
    year of termination of employment          |  |                                     | 1 year of additional vesting  | 





Compensation Committee Interlocks and Insider
Participation




18



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##### Table of Contents





Report on Executive Compensation






General
Compensation Policy








| |   |                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | base salary that is designed primarily to be competitive with
    base salary levels in effect at high technology companies in the
    San Francisco Bay Area that are of comparable size to
    Transmeta and with which Transmeta competes for executive
    personnel;
|
| |  | annual variable performance awards such as bonuses payable in
    cash and tied to the achievement of performance goals, financial
    or otherwise, that are established by the compensation
    committee; and                                                         
|
| |  | long-term equity incentives to strengthen the mutuality of
    interests between Transmetas executive officers and its
    stockholders.                                                                                                                                



19



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##### Table of Contents









Executive
Compensation in General


Base Compensation.


Incentive Compensation.






Stock Options.


20



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##### Table of Contents







Chief
Executive Officer Compensation






Compliance
with Section 162(m) of the Internal Revenue Code




21



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##### Table of Contents



Company Stock Price Performance






COMPARISON OF 49 MONTH CUMULATIVE TOTAL RETURN


AMONG TRANSMETA CORPORATION, THE NASDAQ STOCK MARKET (U.S.)
INDEX


AND THE RDG SEMICONDUCTOR COMPOSITE INDEX










|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters





| |   |                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------
| |  | each person or entity known by us to be the beneficial owner of
    more than 5% of our common stock;
|
| |  | each director;                                                                                       
|
| |  | each executive officer named in the Summary Compensation Table
    in this proxy statement; and      
|
| |  | all directors and executive officers as a group.                                                     



22



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##### Table of Contents







|                                  |                                                                  |                    |            |            |              |  |      |       |  
|--------------------------------- | ---------------------------------------------------------------- | ------------------ | ---------- | ---------- | ------------ |  | ---- | ----- | -
|                                  |                                                                  | Number of Shares   |            |            | Percentage   | 
|                                  |                                                                  | of Common Stock    |            |            | Beneficially | 
|Name of Beneficial Owner          |                                                                  | Beneficially Owned |            |            | Owned        | 
|                                  |                                                                  |                    |            |            |              | 
|5% Stockholders:                  |                                                                  |                    |            |            |              |  |      |      
|Oppenheimer Funds, Inc.(1)        |                                                                  |                    | 17,056,900 |            |              |  | 8.98 | %    
|Directors and Executive Officers: |                                                                  |                    |            |            |              |  |      |      
|T. Peter Thomas(2)                |                                                                  |                    | 11,668,317 |            |              |  | 6.14 | %    
|William P. Tai(3)                 |                                                                  |                    | 3,692,623  |            |              |  | 1.94 | %    
|Matthew R. Perry(4)               |                                                                  |                    | 3,120,830  |            |              |  | 1.62 | %    
|David R. Ditzel(5)                |                                                                  |                    | 1,652,594  |            |              |  | *    |      
|John OHara Horsley(6)            |                                                                  |                    | 911,634    |            |              |  | *    |      
|Murray A. Goldman(7)              |                                                                  |                    | 853,059    |            |              |  | *    |      
|Arthur Swift(8)                   |                                                                  |                    | 493,748    |            |              |  | *    |      
|R. Hugh Barnes(9)                 |                                                                  |                    | 396,235    |            |              |  | *    |      
|Takashi Murayama(10)              |                                                                  |                    | 206,247    |            |              |  | *    |      
|Rick Timmins(11)                  |                                                                  |                    | 44,850     |            |              |  | *    |      
|                                  | All executive officers and directors as a group (12 persons)(12) |                    |            | 20,203,556 |              |  |      | 10.47 | %






| |   |                        
| | - | -----------------------
| | * | Less than 1% ownership.



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Based on a Schedule 13G filed with the SEC on
    February 14, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | (2) | Includes 151,621 shares held by Mr. Thomas that he may
    be deemed to own beneficially. Also includes 163,888 shares
    held by Institutional Venture Management VI, L.P,
    7,569,704 shares held by Institutional Venture Partners VI,
    L.P. and 483,106 shares held by IVP Founders Fund I,
    L.P. T. Peter Thomas and seven other individuals are general
    partners of Institutional Venture Management VI, L.P., which is
    a general partner of each of Institutional Venture Partners VI,
    L.P. and IVP Founders Fund I, L.P. Also includes
    26,666 shares held by Institutional Venture Management VII,
    L.P. and 1,293,332 shares held by Institutional Venture
    Partners VII, L.P. T. Peter Thomas, William P. Tai and eight
    other individuals are general partners of Institutional Venture
    Management VII, L.P., which is a general partner of
    Institutional Venture Partners VII, L.P. Also includes
    1,950,000 shares held by Institutional Venture Partners
    VIII, L.P., 21,000 shares held by IVM Investment
    Fund VIII, LLC and 9,000 shares held by IVM Investment
    Fund VIII-A, LLC. T. Peter Thomas, William P. Tai and nine
    other individuals are general partners of Institutional Venture
    Management VIII, L.P., which is a general partner of
    Institutional Venture Partners VIII, L.P., IVM Investment
    Fund VIII, LLC and IVM Investment Fund VIII-A, LLC.
    Each general partner disclaims beneficial ownership of the
    shares held by these funds except to the extent of his or her
    pecuniary interest in these shares. The address of Institutional
    Venture Partners is 3000 Sand Hill Road, Building Two,
    Suite 290, Menlo Park, California 94025. Of the number of
    shares that are beneficially owned by Mr. Thomas,
    74,925 shares are subject to options exercisable within
    60 days after April 1, 2005.
|
| | (3) | Includes 389,925 shares held by Mr. Tai. Also includes
    3,299,998 shares held by entities affiliated with
    Institutional Venture Partners, as to which Mr. Tai shares
    voting and dispositive power. The address of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

23



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##### Table of Contents



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Institutional Venture Partners is 3000 Sand Hill Road,
    Building Two, Suite 290, Menlo Park, California 94025.
    Also includes 2,700 shares held of record by Steven Kay and
    Augustus Owen Tai, as trustee for the Beauchamp Tai Irrevocable
    Childrens Trust dated October 1, 2000. Of the number
    of shares that are beneficially owned by Mr. Tai,
    44,925 shares are subject to options exercisable within
    60 days after April 1, 2005.



| |     |                                                                                                                                                                  
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (4) | Represents shares subject to options exercisable within
    60 days after April 1, 2005.                                                                         
|
| | (5) | Of the number of shares that are beneficially owned by
    Mr. Ditzel, 623,746 shares are subject to options
    exercisable within 60 days after April 1, 2005. 
|
| | (6) | Of the number of shares that are beneficially owned by
    Mr. Horsley, 908,120 shares are subject to options
    exercisable within 60 days after April 1, 2005.
|
| | (7) | Of the number of shares that are beneficially owned by
    Dr. Goldman, 244,925 shares are subject to options
    exercisable within 60 days after April 1, 2005.
|
| | (8) | Represents shares subject to options exercisable within
    60 days after April 1, 2005.                                                                         
|
| | (9) | Of the number of shares that are beneficially owned by
    Mr. Barnes, 244,925 shares are subject to options
    within 60 days after April 1, 2005.             



|     |                                                                                                                                                                                                                                                             
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Represents shares subject to options exercisable within
    60 days after April 1, 2005.                                                                                                                                                                    
|    
|(11) | Represents shares subject to options exercisable within
    60 days after April 1, 2005.                                                                                                                                                                    
|    
|(12) | Includes shares disclosed under footnotes 2-3 and 5-11. Of
    the number of shares that are beneficially owned by the
    directors and executive officers, 3,170,660 shares are
    subject to options exercisable within 60 days after
    April 1, 2005.

Securities Authorized for Issuance under Equity Compensation
Plans




|                                                           |  |                         |            |     |                      |                      |      |                             |  |  |           |    
|---------------------------------------------------------- |  | ----------------------- | ---------- | --- | -------------------- | -------------------- | ---- | --------------------------- |  |  | --------- | ---
|                                                           |  |                         |            |     |                      | Number of securities |     
|                                                           |  |                         |            |     |                      | remaining available  |     
|                                                           |  | Number of securities to |            |     | Weighted-average     |                      |      | for future issuance         | 
|                                                           |  | be issued upon exercise |            |     | exercise price of    |                      |      | under equity compensation   | 
|                                                           |  | of outstanding options, |            |     | outstanding options, |                      |      | plans (excluding securities | 
|                                                           |  | warrants and rights     |            |     | warrants and rights  |                      |      | reflected in column(a))     | 
|Plan category                                              |  | (a)                     |            |     | (b)                  |                      |      | (c)                         | 
|                                                           |  |                         |            |     |                      |                      |      |                             | 
|Equity compensation plans approved by security holders     |  |                         | 38,873,712 |     |                      | $                    | 2.33 |                             |  |  | 6,203,389 | (1)
|Equity compensation plans not approved by security holders |  |                         | 1,428,228  | (2) |                      | $                    | 5.24 | (2)                         |  |  |          |    
|                                                           |  |                         |            |     |                      |                      |      |                             | 
|Total                                                      |  |                         | 40,301,940 |     |                      | $                    | 2.43 |                             |  |  | 6,203,389 |    
|                                                           |  |                         |            |     |                      |                      |      |                             | 






|    |                                                                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes 4,177,119 shares available for issuance under
    Transmetas 2000 Equity Incentive Plan, all of which may be
    issued as stock options, restricted stock or stock bonuses, and
    2,026,270 shares available for issuance under
    Transmetas 2000 Employee Stock Purchase Plan.
|   
|(2) | Includes options to purchase 930,000 shares and
    warrants to purchase 498,228 shares outstanding as of
    December 31, 2004 that were issued by Transmeta under
    non-plan options granted in or before 2001.                                                                            

Transmeta Non-Plan Option Grants




24



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|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions







25



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##### Table of Contents














|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services



|                   |  |      |           |  |      |   |         | 
|------------------ |  | ---- | --------- |  | ---- | - | ------- | 
|                   |  | 2004 |           |  | 2003 |  
|                   |  |      |           |  |      |  
|Audit Fees         |  | $    | 1,435,620 |  |      | $ | 623,014 | 
|Audit-Related Fees |  |      | 57,835    |  |      |   | 13,200  | 
|Tax Fees           |  |      | 4,166     |  |      |   | 109,492 | 
|All Other Fees     |  |      |          |  |      |   |        | 

Audit Fees.


Audit-Related Fees.


Tax Fees.


All Other Fees.


Pre-Approval of Audit and Non-Audit Services of Independent
Registered Public Accounting Firm




26



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##### Table of Contents










PART IV







|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules

The following documents are filed as part of this
report:


Exhibits




|        |    |               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|------- | -- | ------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |              
|Number  |    | Exhibit Title
|        |    |              
|        | 3  | .01           |  | Second Amended and Restated Certificate of Incorporation.
    Incorporated by reference to Exhibit 3.01 to
    Transmetas Form 10-K for the year ended
    December 31, 2000.                                                                                                                                                                                                                                                                                                      
|        | 3  | .02           |  | Restated Bylaws. Incorporated by reference to Exhibit 3.06
    to Transmetas Form S-1 Registration Statement (File
    No. 333-44030) (the IPO S-1).                                                                                                                                                                                                                                                                                                                             
|        | 3  | .03           |  | Certificate of Designations specifying the terms of the
    Series A Junior Participating Preferred Stock of Transmeta
    as filed with the Secretary of State of the State of Delaware on
    January 15, 2002. Incorporated by reference to
    Exhibit 3.02 to Transmetas Form 8-A Registration
    Statement filed on January 16, 2002.                                                                                                                                       
|        | 4  | .01           |  | Specimen common stock certificate. Incorporated by reference to
    Exhibit 4.01 to the IPO S-1.                                                                                                                                                                                                                                                                                                                                                                                    
|        | 4  | .02           |  | Fifth Restated Investors Rights Agreement dated
    March 31, 2000, between Transmeta, certain stockholders of
    Transmeta and a convertible note holder named therein.
    Incorporated by reference to Exhibit 4.02 to the IPO S-1.                                                                                                                                                                                                                                            
|        | 4  | .03           |  | Form of Piggyback Registration Rights Agreement. Incorporated by
    reference to Exhibit 4.03 to the IPO S-1.                                                                                                                                                                                                                                                                                                                                                                      
|        | 4  | .04           |  | Rights Agreement dated January 15, 2002 between Transmeta
    and Mellon Investor Services LLC as Rights Agent, which includes
    as Exhibit A the form of Certificate of Designations of
    Series A Junior Participating Preferred Stock, as
    Exhibit B the Summary of Stock Purchase Rights and as
    Exhibit C the Form of Rights Certificate. Incorporated by
    reference to Exhibit 4.01 to Transmetas Form 8-A
    Registration Statement filed on January 16, 2002.
|        | 10 | .01           |  | Form of Indemnity Agreement. Incorporated by reference to
    Exhibit 10.01 to the IPO S-1.**                                                                                                                                                                                                                                                                                                                                                                                       
|        | 10 | .02           |  | 1995 Equity Incentive Plan. Incorporated by reference to
    Exhibit 10.02 to the IPO S-1.**                                                                                                                                                                                                                                                                                                                                                                                        
|        | 10 | .03           |  | 1997 Equity Incentive Plan. Incorporated by reference to
    Exhibit 10.03 to the IPO S-1.**                                                                                                                                                                                                                                                                                                                                                                                        
|        | 10 | .04           |  | 2000 Equity Incentive Plan. Incorporated by reference to
    Exhibit 4.06 to Transmetas Form S-8 Registration
    Statement filed January 18, 2002.**                                                                                                                                                                                                                                                                                                                              
|        | 10 | .05           |  | 2000 Employee Stock Purchase Plan. Incorporated by reference to
    Exhibit 4.08 to Transmetas Form S-8 Registration
    Statement filed May 28, 2002.**                                                                                                                                                                                                                                                                                                                           

27



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##### Table of Contents



|        |    |               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|------- | -- | ------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |              
|Number  |    | Exhibit Title
|        |    |              
|        | 10 | .06           |  | Lease Agreement, dated November 1, 1995, between John
    Arrillaga, as trustee of John Arrillaga Family Trust, Richard T.
    Peery, as trustee of Richard T. Peery Separate Property Trust,
    and Transmeta, as amended by Amendment No. 1, dated
    January 29, 1997, and Amendment No. 2, dated
    April 2, 1998, between John Arrillaga, as trustee of John
    Arrillaga Survivors Trust (successor in interest to the
    Arrillaga Family Trust), Richard T. Peery, as trustee of Richard
    T. Peery Separate Property Trust, and Transmeta. Incorporated by
    reference to Exhibit 10.08 to the IPO S-1.
|        | 10 | .07           |  | Lease Agreement, dated January 29, 1997, between John
    Arrillaga, as trustee of John Arrillaga Family Trust, Richard T.
    Peery, as trustee of Richard T. Peery Separate Property Trust,
    and Transmeta, as amended by Amendment No. 1, dated
    April 2, 1998, between John Arrillaga, as trustee of John
    Arrillaga Survivors Trust (successor in interest to the
    Arrillaga Family Trust), Richard T. Peery, as trustee of Richard
    T. Peery Separate Property Trust, and Transmeta. Incorporated by
    reference to Exhibit 10.09 to the IPO S-1.                                                 
|        | 10 | .08           |  | Lease Agreement, dated April 2, 1998, between John
    Arrillaga, as trustee of John Arrillaga Survivors Trust,
    Richard T. Peery, as trustee of Richard T. Peery Separate
    Property Trust, and Transmeta. Incorporated by reference to
    Exhibit 10.10 to the IPO S-1.                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .09           |  | Lease Agreement, dated April 2, 1998, between John
    Arrillaga, as trustee of John Arrillaga Survivors Trust,
    Richard T. Peery, as trustee of Richard T. Peery Separate
    Property Trust, and Transmeta. Incorporated by reference to
    Exhibit 10.11 to the IPO S-1.                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .10           |  | Sublease Agreement, dated as of April 28, 1999, between
    Transmeta and Xuan Nguyen dba World Marketing Alliance.
    Incorporated by reference to Exhibit 10.13 to the IPO S-1.                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 10 | .11           |  | Form of Stock Option Agreement under Transmetas 2000
    Equity Incentive Plan. Incorporated by reference to
    Exhibit 10.17 to the IPO S-1.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 10 | .12           |  | Form of Stock Option Agreement (for Non-Employee Directors)
    under Transmetas 2000 Equity Incentive Plan. Incorporated
    by reference to Exhibit 10.18 to the IPO S-1.**                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 10 | .13           |  | Form of Stock Option Agreement. Incorporated by reference to
    Exhibit 10.18 to Transmetas Form 10-K for the
    year ended December 31, 2000.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 10 | .14           |  | Authorized Exclusive Distributor Agreement, dated
    September 12, 2000, between Transmeta and Siltrontech
    Electronics Corporation. Incorporated by reference to
    Exhibit 10.15 to Transmetas Form 10-K for the
    year ended December 31, 2001 (the 2001 10-K).                                                                                                                                                                                                                                                                                                                                              
|        | 10 | .15           |  | Option Amendment and Termination Agreement, dated
    November 16, 2001, between Transmeta and Merle McClendon.
    Incorporated by reference to Exhibit 10.17 to the 2001
    10-K.**                                                                                                                                                                                                                                                                                                                                                                                                                                    
|        | 10 | .16           |  | Offer of Employment from Transmeta Corporation to Matthew R.
    Perry dated March 21, 2002. Incorporated by reference to
    Exhibit 10.22 to Transmetas Form 10-Q for the
    quarterly period ended June 30, 2002.**                                                                                                                                                                                                                                                                                                                                                                                                  
|        | 10 | .17           |  | Technology Transfer Services and Technology License Agreement,
    dated March 25, 2004, between Transmeta and NEC Electronics
    Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .18           |  | LongRun2 Technology License Agreement, dated November 29,
    2004, between Transmeta and Fujitsu Limited.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 10 | .19           |  | LongRun2 Technology License Agreement, dated January 20,
    2005, between Transmeta and Sony Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 21 | .01           |  | Subsidiaries. Incorporated by reference to Exhibit 21.01 to
    the IPO S-1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        | 23 | .01           |  | Consent of Ernst & Young LLP, Independent Registered
    Public Accounting Firm.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 23 | .02*          |  | Consent of Ernst & Young LLP, Independent Registered
    Public Accounting Firm.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 24 | .01           |  | Power of Attorney.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 31 | .01*          |  | Certification by Arthur L. Swift pursuant to Rule 13a-14(a).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        | 31 | .02*          |  | Certification by Mark R. Kent pursuant to Rule 13a-14(a).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 32 | .01*          |  | Certification by Arthur L. Swift pursuant to 18 U.S.C.
    Section 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 32 | .02*          |  | Certification by Mark R. Kent pursuant to 18 U.S.C.
    Section 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

28



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| |   |                
| | - | ---------------
| | * | Filed herewith.



|   |                                                 
|-- | ------------------------------------------------
|** | Management contract or compensatory arrangement.



| |   |                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Confidential treatment has been requested for portions of this
    exhibit. These portions have been omitted from this Report and
    have been filed separately with the SEC.

29



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##### Table of Contents






SIGNATURES






| |                      
| | ---------------------
| | Transmeta Corporation



| |     |                    
| | --- | -------------------
| | By: | /s/ Arthur L. Swift

| |                                       
| | --------------------------------------
| |                                       
| | Arthur L. Swift                       
| | Chief Executive Officer and a Director
| | +(Principal Executive Officer)        





| |     |                 
| | --- | ----------------
| | By: | /s/ Mark R. Kent

| |                                  
| | ---------------------------------
| |                                  
| | Mark R. Kent                     
| | Chief Financial Officer          
| | +(Principal Financial Officer and
| | Duly Authorized Officer)         





|                       |  |          |  |                |  | 
|---------------------- |  | -------- |  | -------------- |  | 
|Signature              |  | Title    |  | Date          
|                       |  |          |  |               
|                      
|*Murray
    A. Goldman |  | Director |  | April 29, 2005
|                      
|*R.
    Hugh Barnes    |  | Director |  | April 29, 2005
|                      
|*David
    R. Ditzel   |  | Director |  | April 29, 2005
|                      
|*William
    P. Tai    |  | Director |  | April 29, 2005
|                      
|*T. Peter
    Thomas   |  | Director |  | April 29, 2005
|                      
|*Rick
    Timmins      |  | Director |  | April 29, 2005

30



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|                                       |  |                                                    |  |                |  |               
|-------------------------------------- |  | -------------------------------------------------- |  | -------------- |  | --------------
|Signature                              |  | Title                                              |  | Date          
|                                       |  |                                                    |  |               
|                                      
|*By:                                   |  | /s/ Mark R. KentMark
    R. Kent, attorney-in-fact |  |                |  | April 29, 2005
|                                      
|/s/ Arthur L. SwiftArthur
    L. Swift |  | Director                                           |  | April 29, 2005

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##### Table of Contents



EXHIBIT INDEX


|        |    |               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|------- | -- | ------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |              
|Number  |    | Exhibit Title
|        |    |              
|        | 3  | .01           |  | Second Amended and Restated Certificate of Incorporation.
    Incorporated by reference to Exhibit 3.01 to
    Transmetas Form 10-K for the year ended
    December 31, 2000.                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 3  | .02           |  | Restated Bylaws. Incorporated by reference to Exhibit 3.06
    to Transmetas Form S-1 Registration Statement (File
    No. 333-44030) (the IPO S-1).                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 3  | .03           |  | Certificate of Designations specifying the terms of the
    Series A Junior Participating Preferred Stock of Transmeta
    as filed with the Secretary of State of the State of Delaware on
    January 15, 2002. Incorporated by reference to
    Exhibit 3.02 to Transmetas Form 8-A Registration
    Statement filed on January 16, 2002.                                                                                                                                                                                                                                                                             
|        | 4  | .01           |  | Specimen common stock certificate. Incorporated by reference to
    Exhibit 4.01 to the IPO S-1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 4  | .02           |  | Fifth Restated Investors Rights Agreement dated
    March 31, 2000, between Transmeta, certain stockholders of
    Transmeta and a convertible note holder named therein.
    Incorporated by reference to Exhibit 4.02 to the
    IPO S-1.                                                                                                                                                                                                                                                                                                                                                                              
|        | 4  | .03           |  | Form of Piggyback Registration Rights Agreement. Incorporated by
    reference to Exhibit 4.03 to the IPO S-1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 4  | .04           |  | Rights Agreement dated January 15, 2002 between Transmeta
    and Mellon Investor Services LLC as Rights Agent, which includes
    as Exhibit A the form of Certificate of Designations of
    Series A Junior Participating Preferred Stock, as
    Exhibit B the Summary of Stock Purchase Rights and as
    Exhibit C the Form of Rights Certificate. Incorporated by
    reference to Exhibit 4.01 to Transmetas Form 8-A
    Registration Statement filed on January 16, 2002.                                                                                                                                      
|        | 10 | .01           |  | Form of Indemnity Agreement. Incorporated by reference to
    Exhibit 10.01 to the IPO S-1.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | 10 | .02           |  | 1995 Equity Incentive Plan. Incorporated by reference to
    Exhibit 10.02 to the IPO S-1.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        | 10 | .03           |  | 1997 Equity Incentive Plan. Incorporated by reference to
    Exhibit 10.03 to the IPO S-1.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        | 10 | .04           |  | 2000 Equity Incentive Plan. Incorporated by reference to
    Exhibit 4.06 to Transmetas Form S-8 Registration
    Statement filed January 18, 2002.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|        | 10 | .05           |  | 2000 Employee Stock Purchase Plan. Incorporated by reference to
    Exhibit 4.08 to Transmetas Form S-8 Registration
    Statement filed May 28, 2002.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 10 | .06           |  | Lease Agreement, dated November 1, 1995, between John
    Arrillaga, as trustee of John Arrillaga Family Trust, Richard T.
    Peery, as trustee of Richard T. Peery Separate Property Trust,
    and Transmeta, as amended by Amendment No. 1, dated
    January 29, 1997, and Amendment No. 2, dated
    April 2, 1998, between John Arrillaga, as trustee of John
    Arrillaga Survivors Trust (successor in interest to the
    Arrillaga Family Trust), Richard T. Peery, as trustee of Richard
    T. Peery Separate Property Trust, and Transmeta. Incorporated by
    reference to Exhibit 10.08 to the IPO S-1.
|        | 10 | .07           |  | Lease Agreement, dated January 29, 1997, between John
    Arrillaga, as trustee of John Arrillaga Family Trust, Richard T.
    Peery, as trustee of Richard T. Peery Separate Property Trust,
    and Transmeta, as amended by Amendment No. 1, dated
    April 2, 1998, between John Arrillaga, as trustee of John
    Arrillaga Survivors Trust (successor in interest to the
    Arrillaga Family Trust), Richard T. Peery, as trustee of Richard
    T. Peery Separate Property Trust, and Transmeta. Incorporated by
    reference to Exhibit 10.09 to the IPO S-1.                                                 
|        | 10 | .08           |  | Lease Agreement, dated April 2, 1998, between John
    Arrillaga, as trustee of John Arrillaga Survivors Trust,
    Richard T. Peery, as trustee of Richard T. Peery Separate
    Property Trust, and Transmeta. Incorporated by reference to
    Exhibit 10.10 to the IPO S-1.                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .09           |  | Lease Agreement, dated April 2, 1998, between John
    Arrillaga, as trustee of John Arrillaga Survivors Trust,
    Richard T. Peery, as trustee of Richard T. Peery Separate
    Property Trust, and Transmeta. Incorporated by reference to
    Exhibit 10.11 to the IPO S-1.                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .10           |  | Sublease Agreement, dated as of April 28, 1999, between
    Transmeta and Xuan Nguyen dba World Marketing Alliance.
    Incorporated by reference to Exhibit 10.13 to the
    IPO S-1.                                                                                                                                                                                                                                                                                                                                                                                                                                    
|        | 10 | .11           |  | Form of Stock Option Agreement under Transmetas 2000
    Equity Incentive Plan. Incorporated by reference to
    Exhibit 10.17 to the IPO S-1.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 10 | .12           |  | Form of Stock Option Agreement (for Non-Employee Directors)
    under Transmetas 2000 Equity Incentive Plan. Incorporated
    by reference to Exhibit 10.18 to the IPO S-1.**                                                                                                                                                                                                                                                                                                                                                                                                                                            



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##### Table of Contents



|        |    |               |  |                                                                                                                                                                                                                                                                             
|------- | -- | ------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |              
|Number  |    | Exhibit Title
|        |    |              
|        | 10 | .13           |  | Form of Stock Option Agreement. Incorporated by reference to
    Exhibit 10.18 to Transmetas Form 10-K for the
    year ended December 31, 2000.**                                                                                                                         
|        | 10 | .14           |  | Authorized Exclusive Distributor Agreement, dated
    September 12, 2000, between Transmeta and Siltrontech
    Electronics Corporation. Incorporated by reference to
    Exhibit 10.15 to Transmetas Form 10-K for the
    year ended December 31, 2001 (the 2001 10-K).
|        | 10 | .15           |  | Option Amendment and Termination Agreement, dated
    November 16, 2001, between Transmeta and Merle McClendon.
    Incorporated by reference to Exhibit 10.17 to the 2001
    10-K.**                                                                                      
|        | 10 | .16           |  | Offer of Employment from Transmeta Corporation to Matthew R.
    Perry dated March 21, 2002. Incorporated by reference to
    Exhibit 10.22 to Transmetas Form 10-Q for the
    quarterly period ended June 30, 2002.**                                                    
|        | 10 | .17           |  | Technology Transfer Services and Technology License Agreement,
    dated March 25, 2004, between Transmeta and NEC Electronics
    Corporation.                                                                                                                            
|        | 10 | .18           |  | LongRun2 Technology License Agreement, dated November 29,
    2004, between Transmeta and Fujitsu Limited.                                                                                                                                                                 
|        | 10 | .19           |  | LongRun2 Technology License Agreement, dated January 20,
    2005, between Transmeta and Sony Corporation.                                                                                                                                                                 
|        | 21 | .01           |  | Subsidiaries. Incorporated by reference to Exhibit 21.01 to
    the IPO S-1.                                                                                                                                                                                                
|        | 23 | .01           |  | Consent of Ernst & Young LLP, Independent Registered
    Public Accounting Firm.                                                                                                                                                                                            
|        | 23 | .02*          |  | Consent of Ernst & Young LLP, Independent Registered
    Public Accounting Firm.                                                                                                                                                                                            
|        | 24 | .01           |  | Power of Attorney.                                                                                                                                                                                                                                                          
|        | 31 | .01*          |  | Certification by Arthur L. Swift pursuant to Rule 13a-14(a).                                                                                                                                                                                                                
|        | 31 | .02*          |  | Certification by Mark R. Kent pursuant to Rule 13a-14(a).                                                                                                                                                                                                                   
|        | 32 | .01*          |  | Certification by Arthur L. Swift pursuant to 18 U.S.C.
    Section 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002.                                                                                                                          
|        | 32 | .02*          |  | Certification by Mark R. Kent pursuant to 18 U.S.C.
    Section 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002.                                                                                                                             






| |   |                
| | - | ---------------
| | * | Filed herewith.



|   |                                                 
|-- | ------------------------------------------------
|** | Management contract or compensatory arrangement.



| |   |                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Confidential treatment has been requested for portions of this
    exhibit. These portions have been omitted from this Report and
    have been filed separately with the SEC.