Document:

Security Agreement, dated July 1, 2004

 Exhibit 10.10 
  
 SECURITY AGREEMENT 
  
 THIS SECURITY AGREEMENT is made as of July 1, 2004 (“Security Agreement”), by CAMBRIDGE DISPLAY TECHNOLOGY LIMITED, a United Kingdom corporation
and CDT OXFORD LIMITED, a United Kingdom corporation (collectively, or individually, as applicable, “Grantor”), in favor of IPIFS GUARANTEE CORP., a Delaware corporation (“Secured Party”). 
  
 RECITALS 
  
 WHEREAS, pursuant to a certain Credit Agreement dated as of the date hereof by and among Grantor and Lloyds TSB Bank plc
(“Lender”) (as the same may from time to time be amended, modified, supplemented or restated, the “Credit Agreement”), Lender has agreed to make certain advances of money and to extend certain financial accommodations to Grantor
in the amounts and manner set forth in the Credit Agreement (collectively, the “Loans”); 
  
 WHEREAS, a condition to the obligation of the Lender to make the Loans to Grantor is that the Secured Party and the Lender enter into a Letter of
Understanding of even date herewith (such agreement, as amended, modified, supplemented or restated from time to time being referred to as the “Letter of Understanding”). Simultaneously herewith the Secured Party is executing and delivered
the Letter of Understanding to the Lender; and 
  
 WHEREAS, the
Secured Party is unwilling to enter into the Letter of Understanding unless Grantor executes and delivers (a) this Security Agreement and (b) the Reimbursement Agreement of even date herewith (such agreement, as amended, modified, supplemented or
restated from time to time, being referred to as the “Reimbursement Agreement”), pursuant to which Grantor agrees to reimburse the Secured Party for any payments made by the Secured Party to Lender under (i) the Letter of Understanding or
(ii) the L/C Reimbursement Agreement of even date herewith by the Secured Party in favor of Principal Financial Services, Inc. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in order to induce Secured Party to enter into the Reimbursement Agreement and the Security Agreement and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, Grantor hereby represents, warrants, covenants and agrees with the Secured Party for its benefit, as follows: 
  
 1. DEFINED TERMS. When used in this Security Agreement the following terms
shall have the following meanings (such meanings being equally applicable to both the singular and plural forms of the terms defined): 
  
 1.1 “Accounts” shall have the meaning assigned to such term in Section 3.2 of this Security Agreement. 

 1.2 “Collateral” shall have the meaning assigned to such term in Section 2 of this Security
Agreement. 
  
 1.3 “Collateral Realization” means (a)
the sale, transfer, assignment or other disposition by the Secured Party of any Patent, Patent License, Copyright, Copyright License, Trademark, Trademark License or other License comprising a portion of the Collateral, or (b) the Secured Party
taking and retaining possession of any Patent, Patent License, Copyright, Copyright License, Trademark, Trademark License or other License comprising a portion of the Collateral, in each case, following exercise by the Secured Party of its remedies
hereunder. 
  
 1.4 “Copyrights” means all of the
following in which Grantor now holds or hereafter acquires any right, title or interest: (a) all copyrights, whether registered or unregistered, held or existing pursuant to the laws of the United States, any State thereof or any other country; (b)
registrations, applications and recordings in the United States Copyright Office or in any similar office or agency of the United States, any State thereof or any other country; (c) any continuations, renewals or extensions of any copyright; (d) any
registrations to be issued in any pending applications; (e) any prior versions of works covered by copyright and all works based upon, derived from or incorporating such works; (f) any embodiments of a work that are useful or necessary for the
manufacture or production of a copyrighted work including, without limitation, molds, master tapes, film reels, CDs, DVDs, disks or other magnetic or electronic media; (g) any income, royalties, damages, claims and payments now and hereafter due
and/or payable with respect to copyrights, including, without limitation, damages, claims and recoveries for past, present or future infringement; (h) any rights to sue for past, present and future infringements of any copyright; and (i) any other
rights corresponding to any of the foregoing rights throughout the world. 
  
 1.5 “Copyright License” means any written agreement, in which Grantor now holds or hereafter acquires any right, title or interest, which agreement grants any right in or to any Copyright or Copyright
registration (whether Grantor is the licensee or the licensor thereunder) including, without limitation, licenses pursuant to which Grantor has obtained the exclusive right to use a copyright owned by a third party, a sublicense to use a copyright,
a distribution agreement regarding copyrighted works and the right to prepare for sale, sell or advertise for sale, all of the inventory now or hereafter owned by Grantor and now or hereafter covered by such license agreements. 
  
 1.6 “Event of Default” has the meaning provided in the
Reimbursement Agreement. 
  
 1.7 “License” means any
Copyright License, Patent License, Trademark License or other license of intellectual property rights or interests to which Grantor is or shall become a party. 
  

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 1.8 “Lien” means any mortgage, lien, deed of trust, charge, pledge, security interest or other
encumbrance. 
  
 1.9 “Litigation” means any suits,
actions, proceedings (administrative, judicial or in arbitration, mediation or alternative dispute resolution), claims or counterclaims for infringement, misappropriation, or other violation of any of the Copyrights, Patents, Trademarks and/or
Licenses. 
  
 1.10 “Patents” means all of the following
in which Grantor now holds or hereafter acquires any right, title or interest: (a) all United States or foreign patents (including, without limitation, utility, design and plant patents), all registrations and recordings thereof and all applications
for United States or foreign patents, including, without limitation, registrations, recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other
country; (b) all reissues, divisions, continuations, renewals, continuations in part or extensions of any patent; (c) all petty patents, divisionals and patents of addition; (d) all patents to issue in any such applications; (e) all means of
manufacturing patented products, including, without limitation, trade secrets, formulas, customer lists, manufacturing processes, mask works, molds and prototypes, (f) any income, royalties, damages, claims and payments now and hereafter due and/or
payable with respect to patents, including, without limitation, damages, claims and recoveries for past, present or future infringement; and (g) any rights to sue for past, present and future infringements of any patent. 
  
 1.11 “Patent License” means any written agreement (other than any
joint development agreement), in which Grantor now holds or hereafter acquires any right, title or interest, which agreement grants any right with respect to any Patent (whether Grantor is the licensee or the licensor thereunder) including, without
limitation, licenses pursuant to which Grantor has obtained the exclusive right to use a patent owned by a third party, a sublicense to use a patent, a distribution agreement regarding one or more patented products or processes and the right to
prepare for sale, sell or advertise for sale, all of the inventory now or hereafter owned by Grantor and now or hereafter covered by such license agreements. 
  
 1.12 “Secured Obligations” means (a) all obligations and liabilities of the Grantor under the Reimbursement Agreement; (b) the obligation of
Grantor to pay any fees, costs and expenses of the Secured Party under Section 6.2 hereof; and (c) all other indebtedness, liabilities and obligations of Grantor to Secured Party, whether now existing or hereafter incurred, and whether created
under, arising out of or in connection with any written agreement or otherwise. 
  
 1.13 “Trademarks” means any of the following in which Grantor now holds or hereafter acquires any right, title or interest: (a) any United States or foreign trademarks, trade names, corporate names, company
names, business names, trade styles, trade dress, service marks, logos, other source or business identifiers, designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all registrations and recordings thereof and
any applications in connection therewith, including, without limitation, registrations, recordings and 
  

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 applications in the United States Patent and Trademark Office or in any similar office or agency of the United States,
any State thereof or any other country (collectively, the “Marks”); (b) any reissues, extensions or renewals of any Marks, (c) the goodwill of the business symbolized by or associated with the Marks, (d) all means of manufacturing goods or
offering services covered by the Marks, including, without limitation, trade secrets, formulas, customer lists, manufacturing processes, molds, designs, plans and prototypes, (e) any income, royalties, damages, claims and payments now and hereafter
due and/or payable with respect to the Marks, including, without limitation, payments under all licenses entered into in connection with the Marks and damages, claims, payments and recoveries for past, present or future infringement and (f) any
rights to sue for past, present and future infringements of the Marks. 
  
 1.14 “Trademark License” means any written agreement, in which Grantor now holds or hereafter acquires any right, title or interest, which agreement grants any right in and to any Trademark (whether Grantor is the licensee or the
licensor thereunder) including, without limitation, licenses pursuant to which Grantor has obtained the exclusive right to use a trademark owned by a third party, a sublicense to use a trademark, a distribution agreement relating to goods or
services covered by one or more trademarks and the right to prepare for sale, sell or advertise for sale, all of the inventory now or hereafter owned by Grantor and now or hereafter covered by such license agreements. 
  
 1.15 “UCC” means the Uniform Commercial Code as the same may, from
time to time, be in effect in the State of North Carolina; provided, however, in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of Secured Party’s security interest in any
Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of Delaware, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the
provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such provisions. 
  
 1.16 In addition, the following terms shall be defined terms having the meaning set forth for such terms in the UCC: “Account Debtor” and
“Proceeds”. Each of the foregoing defined terms shall include all of such items now owned or existing, or hereafter arising or acquired by Grantor. 
  
 1.17 All capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Reimbursement Agreement.

  
 2. GRANT OF SECURITY INTEREST. As collateral security for the
prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of all the Secured Obligations and in order to induce Secured Party to enter into the Letter of Understanding, Grantor hereby grants to
Secured Party a security interest in all of Grantor’s right, title and interest, if any, in, to and under the following, whether now owned or existing or hereafter arising or acquired and wheresoever located (collectively, the
“Collateral”): 
  
 2.1 All Copyrights, Patents,
Trademarks including, without limitation, the Copyrights, Patents and Trademarks listed in Schedule A, all Licenses including, without limitation, the Licenses listed in Schedule B and any presently pending Litigation relating to Patents or Patent
Licenses including, without limitation, the Litigation listed in Schedule C; and 
  

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 2.2 To the extent not otherwise included, all Proceeds of each of the foregoing and all accessions to,
substitutions and replacements for and rents, profits and products of each of the foregoing. 
  
 2.3 The accounts listed in Schedule I and all monies and other property deposited in such accounts. 
  
 3. RIGHTS OF SECURED PARTY; COLLECTION OF ACCOUNTS. 
  
 3.1 Notwithstanding anything contained in this Security Agreement to the contrary, Grantor expressly agrees that prior to the Collateral Realization
relating to such License, it shall remain liable under each of its Licenses to observe and perform all the conditions and obligations to be observed and performed by it thereunder and that it shall perform all of its duties and obligations
thereunder, all in accordance with and pursuant to the terms and provisions of each such License. Nothing contained in this Security Agreement shall be deemed to impose on the Secured Party any obligation or liability under any License by reason of
or arising out of this Security Agreement or the granting to Secured Party of a Lien therein or the receipt by Secured Party of any payment relating to any License pursuant hereto, or to require or obligate Secured Party in any manner to perform or
fulfill any of the obligations of Grantor under or pursuant to any License, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any
License, or to present or file any claim, or to take any action to collect or enforce any performance or the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. Grantor agrees that any
rights granted under this Security Agreement to the Secured Party with respect to all of the Collateral shall be worldwide and without any liability for royalties or other related charges from the Secured Party to Grantor. 
  
 3.2 Secured Party authorizes Grantor to collect its accounts and accounts
receivable related to the sale, license, settlement, judgment or other disposition of, or otherwise arising from, any of the Collateral (collectively, the “Accounts”), provided that such collection is performed in a prudent and
businesslike manner, and Secured Party may, upon the occurrence and during the continuation of any Event of Default and with prior written notice to Grantor, limit or terminate said authority at any time. Upon the occurrence and during the
continuance of any Event of Default, at the request of Secured Party, Grantor shall, to the extent available to or possessed by Grantor, deliver all originals or other documents evidencing and relating to the performance of labor or service which
created such Accounts, including, without limitation, all original orders, invoices and shipping receipts. 
  

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 3.3 Secured Party may at any time, upon the occurrence and during the continuance of any Event of
Default, with prior written notice to Grantor of its intention to do so, notify any Account Debtors of Grantor or any parties to the Licenses of Grantor that the Accounts and the right, title and interest of Grantor in and under such Licenses have
been assigned to Secured Party and that payments shall be made directly to Secured Party. Upon the request of Secured Party at any time after the occurrence and during the continuance of an Event of Default, Grantor shall so notify such Account
Debtors and parties to such Licenses. Upon the occurrence and during the continuance of any Event of Default and upon prior written notice to Grantor, Secured Party may, in its name or in the name of others, communicate with such Account Debtors and
parties to such Licenses to verify with such parties, to Secured Party’s satisfaction, the existence, amount and terms of any such Accounts or Licenses. 
  
 4. REPRESENTATIONS AND WARRANTIES. Grantor hereby represents and warrants to Secured Party that: 
  
 4.1 Except for the security interest granted to Secured Party under this
Security Agreement, and except as set forth on Schedule F attached hereto, each of which is owned by the Grantor set forth thereon and one or more third parties, Grantor is the sole legal and equitable owner of all right, title and interest in and
to each item of the Collateral in which it purports to grant a security interest hereunder, having good and marketable title thereto, free and clear of any and all Liens (other than the rights of each licensor or licensee party to any License), and
will continue to be the sole legal and equitable owner of all right, title and interest in and to each item of the Collateral so long as the Copyrights, Patents, Trademarks and Licenses shall continue in force. For greater certainty, Grantor shall
not be deemed to have breached any provision of this Section 4.1 solely by virtue of being a non-exclusive licensee under any License. 
  
 4.2 No effective security agreement, financing statement, equivalent security or lien instrument or continuation statement covering all or any part of the
Collateral exists. Grantor has made no previous assignment, transfer or agreements in violation hereof or constituting a present or future assignment, transfer or encumbrance on any of the Collateral. 
  
 4.3 This Security Agreement creates a legal and valid security interest on
and in all of the Collateral in which Grantor now has rights. Upon the filing of appropriate financing statements in the UCC filing office for the District of Columbia, and, where applicable, the filing of a copy of this Security Agreement with the
Trademark division of the United States Patent and Trademark Office, a conditional assignment with the Patent division of the United States Patent and Trademark Office, and the filing of a copy of this Security Agreement with the United States
Copyright Office, Secured Party will have a fully perfected first priority security interest (under the laws of the United States) in all of the Collateral in which Grantor now has rights. This Security Agreement will create a legal and valid and
fully perfected first priority security interest in the Collateral in which Grantor later acquires rights of the type which can be perfected by the following, when Grantor acquires those rights and additional filings as required are made with the
United States Copyright Office, Patent and Trademark Office and/or other offices as are necessary to perfect Secured Party’s security interest in subsequent ownership rights and interests of Grantor in the Collateral. 
  

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 4.4 So long as any Secured Obligations remain outstanding, the commitment of the Lender to extend credit
has not been terminated or any Loan remains outstanding, Grantor will not execute, and there will not be on file in any public office, any effective financing statement or other document or instrument covering the Collateral. 
  
 4.5 On the date hereof, Grantor’s chief executive office, principal
place of business and the place where Grantor maintains its records concerning the Collateral are located at the address set forth on the signature page hereof on the date hereof, and Grantor’s corporate name, type of organization, jurisdiction
of organization, and corporate identification number set forth on the signature page hereof on the date hereof are all true and correct. 
  
 4.6 Grantor has the full right and power to grant the security interest in the Collateral made hereby. 
  
 4.7 No information furnished to the Secured Party concerning the Collateral
and proceeds thereof, for the purpose of inducing Secured Party to enter into the Letter of Understanding and the transaction contemplated thereby, contains (or will contain at the time the information is furnished) any material misstatement of fact
or omits (or will omit at the time the information is furnished) to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
  
 4.8 Except as set forth on Schedule F, to the best of Grantor’s
knowledge and belief, no infringement, breach or unauthorized use presently is being made of any of the Collateral which has or may reasonably be expected to have, alone or in the aggregate, a material adverse effect on the value or use of such
Collateral. The Grantor has advised the Secured Party of the existence of all material restrictions on the use of the Collateral, provided that Grantor shall be deemed to have advised Secured Party of each restriction contained in each
License provided to the Secured Party by Grantor. 
  
 4.9 Except
as set forth on Schedule F, to the best of Grantor’s knowledge and belief (i) except for this Security Agreement and as expressly set forth in each License, there are no obligations to, covenants to or restrictions from third parties affecting
Grantor’s use, disclosure, enforcement, transfer or licensing of the Collateral; (ii) all Collateral that is owned by Grantor is valid and enforceable; (iii) Grantor has the right to use all Collateral that is necessary or desirable for the
operation of Grantor as presently conducted and as proposed by Grantor to be conducted; (iv) Grantor has taken all actions deemed necessary by Grantor, in the exercise of its good business judgment to maintain and protect all Collateral; (v) no loss
of such Collateral is pending, reasonably foreseeable or threatened; (vi) except as set forth on Schedule C hereof, there is no claim pending or currently threatened by or against Grantor asserting the invalidity, 
  

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 misuse or unenforceability of any item of Collateral or challenging Grantor’s right to use or ownership of any item
of Collateral, and there are no grounds for any such claim or challenge; (vii) except as set forth on Schedule C there is not any actual or threatened infringement, misappropriation, breach or other violation of any Collateral, and there are no
facts raising a likelihood of infringement, misappropriation, breach or other violation; (viii) except for the grant of a security interest to the Secured Party under this Security Agreement, the consummation of the transactions contemplated by this
Security Agreement, the Reimbursement Agreement and the Credit Agreement will not alter, impair or extinguish any rights of Grantor in the Collateral; (ix) except as set forth on Schedule C Grantor has not infringed, misappropriated or otherwise
violated, and Grantor does not infringe, misappropriate, or otherwise violate any intellectual property or proprietary right of any other person or entity; and (x) except as set forth on Schedule C there is no claim pending or currently threatened
against Grantor alleging infringement, misappropriation or other violation of intellectual property; and (xi) the Grantor has not given any warranty or indemnification in connection with any item of Collateral to any third party except for statutory
and other warranties given in the ordinary course of business in connection with the sale of goods or services. 
  
 5. COVENANTS. Grantor covenants and agrees with Secured Party that from and after the date of this Security Agreement and until the Secured Obligations
have been performed and paid in full (other than contingent indemnity obligations and other contingent reimbursement obligations): 
  
 5.1 Disposition of Collateral. Except as set forth on Schedule G, Grantor shall not sell, lease, assign, transfer or otherwise dispose of any of
the Collateral, or attempt or contract to do so. Except as set forth on Schedule G, Grantor may enter into any agreement, including, without limitation, any license, related to any or all of the Collateral provided that Grantor obtains Secured
Party’s prior written consent (such consent not to be unreasonably withheld). If Secured Party does not respond within ten (10) Business Days of receipt of Grantor’s written request for such consent (such request to include a copy of the
agreement substantially in the form to be executed), Secured Party’s right to object shall be deemed waived. Notwithstanding the foregoing, Grantor may enter into any license agreement without obtaining Secured Party’s consent if such
license agreement contains terms identical to those set forth in Schedule H or no less favorable to Grantor for each and every term set forth in the numbered paragraphs of Schedule H. Grantor also agrees to maintain, to the extent deemed necessary
by Grantor in the exercise of good business judgment, the quality of any and all merchandise and/or services in connection with which the Trademarks are used, substantially consistent with or better than the quality of said merchandise and/or
services as of the date hereof. 
  
 5.2 Relocation of Business
or Collateral. Grantor shall not relocate its chief executive office, principal place of business or its records from such address(es) provided to Secured Party pursuant to Section 4(d) above without prior written notice to Secured Party except
that Grantor may move its chief executive office, principal place of business or records to 2020 Cambourne Business Park, Cambourne, Cambridge, United Kingdom. 
  

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 5.3 Limitation on Liens on Collateral. Grantor shall not, directly or indirectly, create, permit
or suffer to exist, and shall defend the Collateral against and take such other action as is necessary to remove, any Lien on the Collateral. Notwithstanding the foregoing, liens securing purchase money obligations for intellectual property acquired
from third parties after the date hereof are permitted, provided that, (i) such liens do not, at any time, encumber any property other than the property financed by such Indebtedness, and (ii) the Indebtedness secured thereby does not exceed
the cost or fair market value, whichever is lower, of the property being acquired on the date of acquisition. 
  
 5.4 Maintenance of Records. Grantor shall keep and maintain at its own cost and expense satisfactory and complete records of the Collateral (except
that this Section 5.4 shall not be applicable to Copyrights reasonably deemed to be immaterial by Grantor). 
  
 5.5 Registration and Maintenance of Intellectual Property Rights. Grantor shall (i) diligently prosecute any Patent, Trademark or material
Copyright pending as of the date hereof or thereafter in the manner deemed necessary or appropriate in the good faith businesses judgment of Grantor, (ii) promptly make applications for, register or cause to be registered (to the extent not already
registered and consistent with good faith business judgment) any material Copyright, any Copyright License, any Patent, any Patent License, any Trademark or any Trademark License, which is (a) set forth in Schedule A or Schedule B or (b) is
individually or in the aggregate, material to the conduct of Grantor’s business, with the United States Copyright Office or Patent and Trademark Office, as applicable, including, without limitation, in all such cases the filing and payment of
maintenance, registration and/or renewal fees, the filing of applications for renewal, affidavits of use, affidavits of noncontestability, the filing and diligent prosecution of opposition, interference and cancellation proceedings, and promptly
responding to all United States Copyright Office or Patent and Trademark Office requests and inquiries. Grantor also agrees to preserve and maintain (consistent with good faith business judgment) all rights in the Collateral (other than Copyrights
reasonably determined by Grantor to be immaterial). Any expenses incurred in connection with prosecution, registration and maintenance shall be borne by Grantor. Except to the extent consistent with past practice and consistent with the exercise of
Grantor’s good faith business judgment, Grantor further agrees to retain experienced patent attorneys for the filing and prosecution of all such applications and other proceedings. Grantor shall not, without the Secured Party’s prior
written consent, abandon any rights in or fail to pay any maintenance or renewal fee for any Patent, Trademark or material Copyright listed in Schedule A or materially breach, terminate, fail to renew or extend, or fail to perform any duties or
obligations for any License listed in Schedule B. Grantor further agrees that it will not take any action, or permit any action to be taken by any Person to the extent that such Person is subject to its control, including licensees, or fail to take
any action, which would materially impair the validity, priority, perfection or enforcement of the rights granted to the Secured Party under this Security Agreement, and any such action if it shall take place shall be null and void and of no effect
whatsoever. If Grantor fails to comply with any of the foregoing provisions of Section 5.5, the Secured Party shall have the right (but shall not be obligated) to do so in Grantor’s name to the extent permitted by law, but at Grantor’s
expense, and Grantor hereby agrees to reimburse the Secured Party in full for all expenses, including the fees and disbursements of counsel incurred by the Secured Party in procuring, protecting, defending and 
  

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 maintaining the Collateral. In the event that Grantor shall fail to pay when due any fees required to be paid by it
hereunder, or shall fail to comply with any other duty under this Security Agreement, the Secured Party may, but shall not be required to, pay, satisfy, discharge or bond the same for the account of Grantor, and all monies so paid out shall be
Secured Obligations of Grantor repayable on demand, together with interest at the rate applicable to the Loan. 
  
 5.6 Notification Regarding Changes in Intellectual Property. At the end of each fiscal quarter of Grantor, Grantor shall advise Secured Party of
any subsequent right, title or interest of Grantor in or to any Patent, Trademark, License or material Copyright not specified on Schedule A hereto, the provisions of Section 2 above shall automatically apply thereto, and Grantor hereby authorizes
and appoints Secured Party as Grantor’s attorney-in-fact solely to the extent necessary to modify or amend such Schedule, as necessary, to reflect any addition or deletion to such ownership rights, and pursuant to Schedule D, to make any
additional filings. Grantor hereby authorizes the Secured Party to modify this Security Agreement by amending Schedules A and B to include any future Copyrights, Patents, Trademarks or Licenses that are Collateral under Section 2 above. In addition
to any requirements in this Security Agreement for notification, Grantor shall also provide the Secured Party with quarterly reports that identify the status of the Collateral, any new Patents, Trademarks, Licenses and/or material Copyrights, any
newly filed applications, the status of any pending applications, the payment of any maintenance or renewal fees, the status of any litigation and any threats of litigation, in each case, solely to the extent relating to the Collateral.
Notwithstanding anything to the contrary in this Section 5.6, no representations set forth in Section 4 of this Security Agreement shall apply to any information added to Schedules A and B by the Secured Party or any modifications to such schedules
made by Security Party after the effective date of this Security Agreement. 
  
 5.7 Defense of Intellectual Property. Grantor shall, to the extent it deems necessary or appropriate in its good faith businesses judgment, (i) protect, defend and maintain the validity and enforceability of
all material current and future Patents, Trademarks and material Copyrights, (ii) use its commercially reasonable efforts to detect material infringements of such Copyrights, Patents and Trademarks and promptly advise Secured Party in writing of
material infringements detected and (iii) not allow any material Copyrights, Patents or Trademarks to be abandoned, forfeited or dedicated to the public without the written consent of Secured Party. Grantor shall not commence, or cause to be
commenced, any action, proceeding, lawsuit, mediation or arbitration relating to the Collateral without the prior written consent of the Secured Party, such consent not to be unreasonably withheld; nor shall Grantor engage in any activity or conduct
that could give rise to declaratory judgment jurisdiction. At Grantor’s sole expense, Secured Party shall have the right (but shall not be obligated) to approve (such approval not to be unreasonably withheld)counsel and/or participate in
any action, proceeding, lawsuit, mediation or arbitration relating to the Collateral. In addition, except as set forth in Schedule F, any proposed settlement or compromise of any action, proceeding, lawsuit, mediation or arbitration relating to the
Collateral must be approved, in writing, by the Secured Party, such approval not to be unreasonably withheld. If Secured Party does not respond within ten (10) Business Days of receipt of Grantor’s written request for any consent or approval
required under this Section 5.7, Secured Party’s right to object shall be deemed waived. 
  

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 5.8 Further Assurances; Pledge of Instruments. At any time and from time to time, upon the written
reasonable request of Secured Party, and at the sole expense of Grantor, Grantor shall promptly and duly execute and deliver any and all such further instruments and documents (including, without limitation, control agreements) and take such further
action as Secured Party may reasonably deem necessary or desirable to obtain the full benefits of this Security Agreement, including, without limitation, facilitating the filing of UCC-1 Financing Statements in all applicable jurisdictions and this
Security Agreement (and any amendment hereto) or any other document that the Secured Party may reasonably deem necessary, including, without limitation, any filing described in Schedule D or any other collateral assignment, (and any amendments
thereto) with the United States Copyright Office, Patent and Trademark Office and/or the state or foreign equivalents of these offices, as applicable. 
  
 5.9 Right of Inspection and Audit. Upon reasonable notice to Grantor (unless an Event of Default has occurred and is continuing, in which case no
notice is necessary), Secured Party shall at not more than three (3) times in any calendar year, be afforded full and free access during normal business hours (or during an Event of Default at any time and any number of times) to all the books,
records, correspondence, office, facilities and operations of Grantor, including, without limitation, Grantor’s quality control processes, and Secured Party or any agents or representatives of Secured Party may examine the same, take extracts
therefrom and make photocopies thereof, and Grantor agrees to render to Secured Party, at Grantor’s cost and expense, such clerical and other assistance as may be reasonably requested with regard thereto. 
  
 5.10 Continuous Perfection. Grantor shall not change its name,
identity, corporate structure, jurisdiction of organization or corporation identification number in any manner which might make any financing or continuation statement filed in connection herewith seriously misleading within the meaning of Section
9-506 of the UCC (or any other then applicable provision of the UCC or any other applicable law) unless Grantor gives Secured Party thirty (30) days prior written notice thereof and takes all action necessary or reasonably requested by Secured Party
to amend such financing statement or continuation statement so that it is not seriously misleading. 
  
 5.11 Power of Attorney. Effective only upon the occurrence and during the continuance of an Event of Default, Grantor hereby irrevocably appoints
Secured Party (and any of Secured Party’s designated officers or employees) as Grantor’s true and lawful attorney to: (a) send requests for verification of Accounts and Licenses or notify account debtors or licensees of Secured
Party’s security interest in the Accounts and Licenses; (b) endorse Grantor’s name on any checks or other forms of payment or security that may come into Secured Party’s possession relating to any Account, License or other Collateral;
(c) sign Grantor’s name on any invoice or bill of lading relating to any Account, drafts against account debtors of any Account, schedules and assignments of Accounts and Licenses, verifications of Accounts and Licenses, and notices to account
debtors of any Account and licensees of any License, (d) make, settle and adjust all claims under and decisions with respect to Grantor’s policies of insurance relating to any Account, License or other Collateral; (e) settle and adjust disputes
and claims respecting the Accounts and Licenses directly with account debtors and licensees, for amounts and upon terms 
  

 11 

 which Secured Party determines to be reasonable; (f) modify, in its sole discretion, any intellectual property security
agreement entered into between Grantor and Secured Party without first obtaining Grantor’s approval of or signature to such modification by amending reference to any right, title or interest in any Copyright, Patent, Trademark or License,
acquired by Grantor after the execution hereof or to delete any reference to any right, title or interest in any Copyright, Patent, Trademark or License, in which Grantor no longer has or claims any right, title or interest; (g) file, in its sole
discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral without the signature of Grantor where permitted by law; (h) endorse Grantor’s name on all applications, documents, papers
and instruments, in each case, relating to the Collateral, necessary or desirable for the Secured Party in the use of the Collateral, (i) take any other actions with respect to the Collateral as the Secured Party deems in the best interest of the
Secured Party; (j) grant or issue any exclusive or non-exclusive license under the Collateral to anyone or (h) assign, pledge, convey or transfer title in or dispose of the Collateral to anyone, including the Secured Party or a third party to the
extent permitted under the UCC (or any other applicable law), free and clear of any encumbrance upon title thereof (other than any encumbrance created by this Security Agreement). The appointment of Secured Party as Grantor’s attorney in fact,
and each and every one of Secured Party’s rights and powers, being coupled with an interest, is irrevocable until all of the Secured Obligations have been fully repaid and performed and Secured Party’s obligation to provide advances
hereunder is terminated. Grantor hereby ratifies all that such attorney shall lawfully do or cause to be done by virtue of this Security Agreement. 
  
 6. RIGHTS AND REMEDIES UPON DEFAULT. 
  
 6.1 If any Event of Default shall occur and be continuing, Secured Party may exercise in addition to all other rights and remedies granted to it under
this Security Agreement and under any other instrument or agreement securing, evidencing or relating to the Secured Obligations, all rights and remedies of a secured party under the UCC (or any other applicable law). Without limiting the generality
of the foregoing, Grantor expressly agrees that in any such event, and during the existence and continuance of an Event of Default, Secured Party, without demand of performance or other demand, advertisement or notice of any kind (except the notice
specified below of time and place of public or private sale) to or upon Grantor or any other Person (all and each of which demands, advertisements and notices are hereby expressly waived to the maximum extent permitted by the UCC and other
applicable law), may forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and may forthwith sell, lease, license, assign, give an option or options to purchase or sell or otherwise dispose of and deliver said
Collateral (or contract to do so), or any part thereof, in one or more parcels at public or private sale or sales, at any exchange or broker’s board or at any of Secured Party’s offices or elsewhere at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk. Secured Party shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or
any part of said Collateral so sold, free of any right or equity of redemption, which equity of redemption Grantor hereby releases. Secured Party shall apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or
sale as provided in Section 6.4 hereof, Grantor remaining liable for any deficiency remaining unpaid after such application, and 
  

 12 

 to the extent required by the UCC (or any other applicable law), only after so paying over such net proceeds and after
the payment by Secured Party of any other amount required by any provision of law, need Secured Party account for the surplus, if any, to Grantor. To the maximum extent permitted by applicable law, Grantor waives all claims, damages, and demands
against Secured Party arising out of the repossession, retention or sale of the Collateral except such as arise out of the gross negligence or willful misconduct of Secured Party. Grantor agrees that Secured Party need not give more than ten (10)
days’ notice (which notification shall be deemed given when mailed or delivered on an overnight basis, postage prepaid, addressed to Grantor at its address set forth on the signature page hereof) of the time and place of any public sale or of
the time after which a private sale may take place and that such notice is reasonable notification of such matters. Grantor shall remain liable for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient to pay
all amounts to which Secured Party is entitled, Grantor also being liable for the reasonable fees of any attorneys employed by Secured Party to collect such deficiency. 
  
 6.2 Grantor also agrees to pay all fees, costs and expenses of Secured Party, including, without limitation, reasonable
attorneys’ fees, reasonably incurred in connection with the enforcement of any of its rights and remedies hereunder. 
  
 6.3 Grantor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection with
this Security Agreement or any Collateral. 
  
 6.4 The Proceeds of
any sale, disposition or other realization upon all or any part of the Collateral shall be distributed by Secured Party in the following order of priorities: 
  

FIRST, to Secured Party in an amount equal to the then unpaid fees, costs and expenses of Secured Party; 
  
 SECOND, to Secured Party in an amount equal to the other unpaid Secured
Obligations and 
  
 FINALLY, upon payment in full of the Secured
Obligations, to Grantor or its representatives, in accordance with the UCC (or any other applicable law) or as a court of competent jurisdiction may direct. 
  
 7. SECURED PARTY’S RIGHT TO SUE. From and after the occurrence and during continuance of an Event of Default, the Secured Party shall have a right,
but shall in no way be obligated, to bring suit for past, present and future damages in its own name and for its own benefit to enforce the Copyrights, Patents, Trademarks and Licenses, and if the Secured Party commence any such suit, Grantor shall,
at the request of the Secured Party, do any and all lawful acts and execute any and all proper documents required by the Secured Party in aid of such enforcement. 
  

 13 

 8. INDEMNITY. Grantor agrees to defend, indemnify and hold harmless Secured Party and its officers,
employees, and agents against (a) all obligations, demands, claims and liabilities claimed or asserted by any other party in connection with the transactions contemplated by this Security Agreement and (b) all losses or expenses in any way suffered,
incurred or paid by Secured Party as a result of or in any way arising out of or following transactions between Secured Party, Lender and/or Grantor, whether under this Security Agreement, the Letter of Understanding, the Reimbursement Agreement or
otherwise (including without limitation, reasonable attorneys’ fees and expenses for one firm of counsel), except for losses arising from or out of Secured Party’s gross negligence or willful misconduct.  
  
 9. LIMITATION ON SECURED PARTY’S DUTY IN RESPECT OF COLLATERAL. Secured
Party shall deal with the Collateral in the same manner as it deals with similar property for its own account. Secured Party shall be deemed to have acted reasonably in the custody, preservation and disposition of any of the Collateral if it takes
such action as Grantor requests in writing, but failure of Secured Party to comply with any such request shall not in itself be deemed a failure to act reasonably and no failure of Secured Party to do any act not so requested shall be deemed a
failure to act reasonably. 
  
 10. REINSTATEMENT. This Security
Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against Grantor for liquidation or reorganization, should Grantor become insolvent or make an assignment for the benefit of creditors or
should a receiver or trustee be appointed for all or any significant part of Grantor’s property and assets and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Secured
Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent
conveyance” or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed
reduced only by such amount paid and not so rescinded, reduced, restored or returned. 
  
 11. MISCELLANEOUS. 
  
 11.1 No
Waiver; Cumulative Remedies. 
  
 11.1.1 Secured Party shall not
by any act, delay, omission or otherwise be deemed to have waived any of its respective rights or remedies hereunder, nor shall any single or partial exercise of any right or remedy hereunder on any one occasion preclude the further exercise thereof
or the exercise of any other right or remedy. 
  
 11.1.2 The
rights and remedies hereunder provided are cumulative and may be exercised singly or concurrently and are not exclusive of any rights and remedies provided by law. 
  

 14 

 Grantor acknowledges and agrees that this Security Agreement is not intended to limit or restrict in any way the rights
and remedies of the Secured Party but rather is intended to facilitate the exercise of such rights and remedies. The Secured Party shall have, in addition to all other rights and remedies given it by the terms of the Security Agreement, all rights
and remedies allowed by law and the rights and remedies of a secured party under the UCC (or any other applicable law). Recourse to security will not be required at any time. 
  
 11.1.3 None of the terms or provisions of this Security Agreement may be waived, altered, modified or amended except by an
instrument in writing, duly executed by Grantor and Secured Party. 
  
 11.2 Releases. 
  
 11.2.1 This Security Agreement is
made for collateral purposes only. Subject to Section 11.2.2 below, at such time as the Secured Obligations shall have been paid and performed in full (other than contingent indemnity obligations and other contingent reimbursement obligations), the
Collateral shall automatically be released from the Liens created hereby, and this Security Agreement and all obligations of Secured Party and Grantor hereunder shall automatically terminate, all without delivery of any instrument or performance of
any act by any party, and all rights to the Collateral shall revert to Grantor. At the request and sole expense of Grantor following any such termination Secured Party shall deliver to Grantor all termination statements, releases or other
instruments as may be necessary or proper to revest in Grantor (without recourse to or warranty by the Secured Party) full title to the Collateral granted in this Security Agreement, subject to any acceptance or disposition of Collateral which may
have been made by the Secured Party pursuant to this Security Agreement. 
  
 11.2.2 This Security Agreement and the security interests granted herein shall remain in full force and effect and continue to be effective if at any time payment and performance of the Secured Obligations, or any
part thereof, is, pursuant to applicable law, avoided, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent
conveyance” or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof, is avoided, rescinded, reduced, restored or returned, the Secured Obligations and the security interests
granted herein shall be reinstated and the Secured Obligations shall be deemed reduced only by such amount paid and not so avoided, rescinded, reduced, restored or returned. The provisions of this Section 11.2.2 shall survive repayment of all of the
Secured Obligations, and the termination of this Security Agreement in any manner 
  
 11.3 Successor and Assigns. This Security Agreement and all obligations of Grantor hereunder shall be binding upon the successors and permitted assigns of Grantor, and shall, together with the rights and
remedies of Secured Party hereunder, inure to the benefit of Secured Party, any future holder of any of the Secured Obligations and their respective successors and assigns. The Secured Party may, without cost or expense to Grantor, assign to any
Eligible 
  

 15 

 Assignee all or any part of, or any interest (undivided or divided) in, the Secured Party’s rights and benefits
under this Security Agreement including, without limitation, the right, title or interest in and to the Collateral. For the purpose of this Section 11.3, the term “Eligible Assignee” shall mean (a) prior to the occurrence of a Default or
an Event of Default, any financial institution, financial services company, insurance or reinsurance company, government agency, investment company, institutional investor or pension fund, or (b) after a Default or an Event of Default, any Person.
To the extent of any assignment by the Secured Party, the assignee shall have the same rights and benefits against Grantor hereunder as it would have had if such assignee were the Secured Party. Grantor may not assign this Security Agreement without
the prior written consent of the Secured Party, which consent may be granted or withheld at the sole discretion of the Secured Party. Grantor’s successors shall include, without limitation, a receiver, trustee or debtor-in-possession of or for
Grantor. No sales of participations, other sales, assignments, transfers or other dispositions of any agreement governing or instrument evidencing the Secured Obligations or any portion thereof or interest therein shall in any manner affect the Lien
granted to Secured Party hereunder. 
  
 11.4 Notices. All
notifications and other communications permitted or required under this Agreement shall be in writing. Notices shall be effective upon delivery if delivered to the party entitled to receive the same by hand or two Business Day after deposit with an
internationally recognized overnight courier, specifying next day delivery with written verification of receipt, addressed to such party at the address set forth on the signature page hereof. 
  
 11.5 Confidentiality; Sharing Information. Secured Party agrees to
maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its affiliates and to its affiliates’ respective partners, directors, officers, employees, agents, advisors and representatives
(it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority
purporting to have jurisdiction over it, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Security Agreement or any Related Document, (e) in connection with the
exercise of any remedies hereunder or under any other Related Document or any action or proceeding relating to this Security Agreement or any other Related Document or the enforcement of rights hereunder or thereunder, (f) subject to any agreement
containing provisions substantially the same as those of this Section, to (i) any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Security Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Grantor and its obligations, (g) with the consent of the Grantor or (h) to the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section or (y) becomes available to Secured Party or any of its affiliates on a non-confidential basis from a source other than the Grantor. 
  
 For the purpose of this Section, “Information” means all information received from the Grantor relating to
the Grantor or any of its businesses, other than any such information that is available to Secured Party on a non-confidential basis prior to disclosure by the Grantor, 
  

 16 

 provided that, in the case of information received from the Grantor after the date hereof, such information is clearly
identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 
  
 11.6 Counterparts. This Security Agreement may be executed in any number of separate counterparts, each of which, when so executed, shall be deemed
an original, and all of said counterparts taken together shall be deemed to constitute but one and the same instrument. 
  
 11.7 Severability. If any provision of this Security Agreement is held to be unenforceable under applicable law for any reason, it shall be
adjusted, if possible, rather than voided in order to achieve the intent of the parties to the extent possible. In any event, all other provisions of this Security Agreement shall be deemed valid and enforceable to the fullest extent possible under
applicable law. 
  
 11.8 Governing Law. IN ALL RESPECTS,
INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS SECURITY AGREEMENT AND THE SECURED OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE EXCEPT TO THE EXTENT THAT PERFECTION OR THE EFFECT OF PERFECTION OF ANY SECURITY INTEREST IN THE COLLATERAL MAY BE GOVERNED BY THE LAWS OF ANY OTHER JURISDICTION. 
  
 11.9 Consent to Jurisdiction and Service of Process; Waiver of Jury
Trial. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST EACH PARTY HERETO WITH RESPECT TO THIS SECURITY AGREEMENT MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION SITTING IN NEW YORK, NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS
SECURITY AGREEMENT, EACH PARTY HERETO ACCEPTS, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY FINAL JUDGMENT RENDERED
THEREBY IN CONNECTION WITH THIS SECURITY AGREEMENT FROM WHICH NO APPEAL HAS BEEN TAKEN OR IS AVAILABLE. EACH PARTY HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE
MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ITS NOTICE ADDRESS, SUCH SERVICE TO BECOME EFFECTIVE TEN (10) DAYS AFTER SUCH MAILING. EACH OF PARTIES HERETO IRREVOCABLY WAIVES (I) TRIAL BY JURY IN ANY ACTION OR
PROCEEDING WITH RESPECT TO THIS SECURITY AGREEMENT AND (II) ANY OBJECTION (INCLUDING, WITHOUT LIMITATION, ANY OBJECTION OF THE 
  

 17 

 LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS) WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF
ANY SUCH ACTION OR PROCEEDING WITH RESPECT TO THIS SECURITY AGREEMENT IN ANY JURISDICTION SET FORTH ABOVE. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF THE LENDER TO BRING
PROCEEDINGS AGAINST GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION. 
  
 11.10 Advice of Counsel. Grantor represents to the Secured Party that Grantor’s attorneys have reviewed this Security Agreement and that it has discussed this Security Agreement with its attorneys. 
  
 11.11 Section and Heading Titles. The section and heading titles are
for convenience and reference only and shall not affect in any way the interpretation of any of the provisions of this Security Agreement. 
  
 (Remainder of page intentionally left blank) 
  

 18 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement to be executed and
delivered by its duly authorized officer on the date first set forth above. 
  

							
	 CAMBRIDGE DISPLAY TECHNOLOGY LIMITED
	 	 CDT OXFORD LIMITED

				
	 By:
	 	 /s/    Stephen Chandler

	 	By:	 	 /s/    Scott S. D. Brown

	 	 	 Printed Name: Stephen Chandler
	 	 	 	 Printed Name: Scott S. D. Brown

	 	 	 Title: General Counsel
	 	 	 	 Title: Director

  

			
	 ADDRESS OF GRANTOR:
	 	 ADDRESS OF GRANTOR

		
	 Greenwich House
	 	Greenwich House
	 Madingley Rise
	 	Madingley Rise
	 Madingley Road
	 	Madingley Road
	 Cambridge CB30TX
	 	Cambridge CB30TX
	 Great Britain
	 	Great Britain
		
	 TYPE OF ORGANIZATION: Corporation
	 	 TYPE OF ORGANIZATION: Corporation

	 JURISDICTION: United Kingdom
	 	 JURISDICTION: United Kingdom

	 CORPORATE ID NUMBER: 2672530
	 	 CORPORATE ID NUMBER: 4421247

  

			
	 ACCEPTED AND ACKNOWLEDGED BY:

	 IPIFS GUARANTEE CORP.

	 By:
	 	 /s/    Keith Agisim

	 	 	 Printed Name: Keith Agisim

	 	 	 Title: President

  

	
	 ADDRESS OF IPIFS GUARANTEE CORPORATION:

	
	 2221 Edge Lake Drive

	 Suite 100

	 Charlotte, NC 28217License Agreement, dated August 1, 1996

 CONFIDENTIAL TREATMENT REQUESTED: INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED FROM THIS
DOCUMENT. SUCH OMISSIONS ARE NOTED BY “[**]”. AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN SUBMITTED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION. 
  
 Exhibit 10.12 
  
 L IC E N S E    A G R E E M E N T 
  
 This Agreement is made and entered into this 1st day of August, 1996, by and between 
  
 Cambridge Display Technology, Ltd., having a principal place of business at 181a Huntingdon Road, Cambridge CB3 0DJ, United Kingdom (hereinafter referred to as “CDT”) on the one hand, 
  
 and 
  

Philips Electronics N.V., a corporation organized and existing under the laws of the Netherlands, having a principal place of business at Groenewoudseweg 1, 5621 BA
Eindhoven, the Netherlands (hereinafter referred to as “Philips”) on the other hand. 
  
 WITNESSETH 
  
 WHEREAS, Philips and its
Subsidiaries are or intend to be in the business of manufacturing and selling polymer electroluminescent devices; 
  
 WHEREAS, CDT owns or controls several patents and/or patent applications in different countries of the world relating to polymer electroluminescent devices; 

 
 WHEREAS, Philips owns or controls several patents and/or patent applications in different
countries of the world relating to polymer electroluminescent devices; 
  
 WHEREAS, Philips desires to acquire a license under said patents and/or patent applications, and CDT is willing to grant such a license on terms and conditions as described in this Agreement; 
  
 WHEREAS, both CDT and Philips have and expect to continue to have a research and development
effort which will result in further patents relating to polymer electroluminescent devices; 
  
 WHEREAS, each party desires to acquire a license under current and future patents and patent applications of the other party, and 
  
 WHEREAS, each party is willing to extend such a license to the other party, subject to the terms and conditions of this Agreement.

  

 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties agree as
follows: 
  
 Article 1 
  
 As used in this Agreement, the following terms shall have the following meanings: 

 

	1.01	The term “this Agreement” shall mean the present document, including Exhibit A. 

  

	1.02	The term “Subsidiary” shall mean any subsidiary for the time being of either party where the expression “subsidiary” shall have the meaning ascribed to it by
Section 736 of the Companies Act 1985. 

  

	1.03	The term “Patent Rights” shall mean 

  

	 	(1)	patents and patent applications owned and/or the licensing of which is controlled by either Party to this Agreement or any of its Subsidiaries and any and all patents maturing from
such patent applications; 

  

	 	(2)	any and all reissues, renewals and extensions of any of said patents; and 

  

	 	(3)	any and all divisions, continuations and continuations-in-part of said patent applications and all patents issuing thereon. 

  

	 	“Patent	Rights” shall include analogous rights, including utility models. 

  

	1.04	The term “Basic Patent Rights” shall mean CDT’s Patent Rights set forth in Exhibit A. 

  

	1.05	The term “Licensed Patent Rights” of either Party shall mean Patent Rights other than Basic Patent Rights relating to the manufacture, structure and operation of polymer
electroluminescent devices and entitled to receive the benefit of a priority date before January 1, 2001. (Date patent initially filed at 1st Patent office). 

  

	1.06	The term “Products” shall mean complete polymer electroluminescent devices and arrays of such devices in the form of layers or layer structures incorporating at least a
light emitting polymer layer and electrode layers and further optionally incorporating other layers such as for example substrate and supporting layers or protective layers. The term “Products” excludes [**]. 

  

	1.07	The term “Remuneration Products” shall mean Products covered by any claim of the Basic Patent Rights. 

  

 2 

	1.08	The term “Net Sales Value” of Remuneration Products sold by Philips and/or any of its Subsidiaries shall mean the gross invoice price or arms length sales price whichever
is the greater received therefor, less returns and less (to the extent separately stated on such invoice) any normal discounts and allowances actually granted and less any sales, use or other excise taxes and third party shipping charges included in
such invoice price. “Net Sales Value” of Remuneration Products not sold (including those not sold as such but sold by Philips and/or any of its Subsidiaries as components or constituents of other products, or used by Philips and/or any of
its Subsidiaries in its operations, or supplied by Philips and/or any of its Subsidiaries to others for use, or otherwise disposed of) shall mean the standard net selling price of Philips or of the Philips Subsidiary concerned, for such Remuneration
Product (or the nearest equivalent to such Remuneration Product) in effect at the time of such use for quantities of Remuneration Products equal to the quantity so used in the month in which such use occurs or arms length sale price whichever is the
greater. 

  

	1.09	The term “Effective Date” shall mean the date first above appearing on Page 1 of this Agreement. 

  

	1.10	The term “Term of this Agreement” shall mean the period of time running from the Effective Date of this Agreement to the date of expiration of the last expiring patent
included in the Licensed Patent Rights. 

  

	1.11	The term “Term of the Basic Patent Rights” shall mean the period of time running from the Effective Date of this Agreement to the date of expiration of the last expiring
patent included in the Basic Patent Rights. 

  

	1.12	The term “Licensed Year” shall mean the year commencing with the Effective Date hereof and each anniversary year thereafter. 

  

	1.13	The term “Party” or “Parties” shall mean CDT and/or Philips, as the case may be. 

  

	1.14	Plural shall include singular and singular shall include plural unless the context otherwise requires. 

  
 Article 2 
  

	2.01	CDT hereby grants and shall procure that its Subsidiaries shall grant to Philips and its Subsidiaries and Philips hereby accepts on behalf of itself and its Subsidiaries an
indivisible, non-exclusive license under the Basic Patent Rights, without the right to grant sublicenses, to manufacture, to use and to sell or otherwise dispose of Remuneration Products, such licenses to be effective for the Term of this Agreement.

  

 3 

	2.02	CDT hereby grants and shall procure that its Subsidiaries shall grant to Philips and its Subsidiaries and Philips hereby accepts on behalf of itself and its Subsidiaries a
worldwide, indivisible, non-exclusive license under CDT’s Licensed Patent Rights, without the right to grant sublicenses, to manufacture, to use and to sell or otherwise dispose of Products in any and all countries of the world, such licenses
to be effective for the Term of this Agreement. 

  
 The licenses granted in this Article 2.02 shall only apply to Licensed Patent Rights which CDT or its Subsidiaries are free to license to Philips and its Subsidiaries hereunder without CDT or its Subsidiaries having to pay royalties or
other consideration to parties other than their employees. 
  

	2.03	Philips hereby grants and shall procure that its Subsidiaries shall grant to CDT and its Subsidiaries and CDT hereby accepts on behalf of itself and its Subsidiaries a worldwide,
indivisible, non-exclusive license under Philips’ Licensed Patent Rights, without the right to grant sublicenses, to manufacture, to use and to sell or otherwise dispose of Products in any and all countries of the world, such licenses to be
effective for the Term of this Agreement. 

  
 The
licenses granted in this Article 2.03 shall only apply to Licensed Patent Rights which Philips or its Subsidiaries are free to license to CDT and its Subsidiaries hereunder without Philips or its Subsidiaries having to pay royalties or other
consideration to parties other than their employees. 
  

	2.04	The licenses granted in this Article 2 to either Party and its Subsidiaries include a license to have manufactured for it, and to incorporate into Products, materials, foils and
subassemblies of such Products. 

  

	2.05	The Parties shall not assert, nor cause or permit their Subsidiaries to assert, against any customer, direct or indirect, of the other Party, any claim for infringement of Basic or
Licensed Patent Rights by such customer’s use, sale or other disposal of Products obtained directly or indirectly from said other Party, if and to the extent such use, sale or other disposal, if performed by said other Party, would have been
licensed under this Agreement. For Remuneration Products provided by Philips or its Subsidiaries, this undertaking is conditional upon the actual payment of royalties as provided in Article 3. 

  
 Article 3 
  

	3.01	For the license rights granted to Philips and its Subsidiaries under Article 2.01, Philips shall pay to whom CDT designates: 

  

	 	(1)	a non-refundable license fee [**] 

  

 4 

	 	(2)	earned royalties and minimum royalties as recited in Articles 3.02 and 3.03 hereof. 

  

	3.02	As earned royalties, Philips shall pay to CDT the following with respect to all Remuneration Products sold by Philips and its Subsidiaries to third parties or otherwise disposed of
by Philips and its Subsidiaries during the Term of the Basic Patent Rights: 

  

	 	(1)	[**] 

  

	 	(2)	[**] 

  

	3.03	In respect of each Licensed Year during the Term of the Basic Patent Rights [**] of the Effective Date Philips shall pay CDT a minimum royalty of [**] within two (2) months after
the beginning of the said Licensed Year. Any minimum royalty paid by Philips to CDT shall only be creditable against earned royalties in the Licensed Year for which said minimum royalty is due. 

  

	3.04	In the circumstances where both of the following conditions are met: 

  

	 	(1)	Philips or its Subsidiaries manufacture Remuneration Products in a country where CDT has no Basic Patent Rights, and 

  

	 	(2)	such Remuneration Products are sold to a third party in a country where CDT has no Basic Patent Rights, 

  
 then the Parties agree to enter into good faith discussions about a reasonable compensation to CDT, taking into account
CDT’s legitimate business interests and the expected proportion of Remuneration Products that will be imported by the third party into a country where CDT has a Basic Patent Right, where such Remuneration Products may be sold as such or as
components or constituents of other products. Such reasonable compensation will in no case be higher than the compensation agreed upon in Article 3.02. 
  

	3.05	Other than has been provided in Articles 3.01 to 3.04, the licenses under Articles 2.02 and 2.03 are royalty free and no license fee is payable. 

  

	3.06	No royalty shall be due for sales by Philips or its Subsidiaries to CDT or its Subsidiaries. 

  

 5 

 Article 4 
  

	4.01	All royalties and other amounts payable pursuant to Article 3 hereof shall be paid in US Dollars. In case of Net Sales Value paid to Philips in other currency than US Dollars, the
rate of exchange for converting such other currency shall be the telegraphic selling rate of US Dollars in terms of the other currency quoted by Citi Bank New York for payment of current transactions on the last day of the three (3) months calendar
period in respect of which the report according to Article 5 is due. 

  

	4.02	All taxes, duties, fees, imposts or other charges imposed or required to be withheld by any taxing authority in any jurisdiction on the amounts payable by Philips to CDT pursuant to
Article 3 hereof or levied by reason of the execution of this Agreement shall be borne and paid by Philips so that CDT shall receive the amount calculated to be due under Article 3, except to the extent that CDT can offset such taxes, duties, fees,
imposts or charges against its tax liability. Philips shall deliver to CDT the original or a true copy of the receipts covering each of such payments of said taxes, duties, fees, imposts or charges and such other documents as may be required to
claim such offset. 

  
 Article 5 

 
 Not later than the last day of the second (2nd) month following each three (3) months
calendar period subsequent to January 1, 1997, Philips shall furnish to CDT a written report in such detail as CDT reasonably requires of all amounts due and their calculation pursuant to Article 3 for the relevant three (3) months calendar period,
and shall pay CDT all amounts due to CDT. The first such report made by Philips shall also include the Net Sales Value of Remuneration Products sold or otherwise disposed of prior to January 1, 1997. Not later than two (2) months after the
expiration date or other termination of this Agreement, Philips shall furnish to CDT a written report of all amounts due pursuant to Article 3 for the period ending on the expiration or termination date and shall pay CDT all amounts due to CDT.

  
 Such report shall also be accompanied by all the receipts or receipt copies
required by reason of Article 4 hereof showing payment by Philips for the account of CDT of all taxes, duties, fees, imposts or charges required to be withheld by Philips from the amounts paid to CDT during the specified period, and such report
shall separately show such taxes, duties, fees, imposts or charges. 
  

 6 

 Article 6 
  

Philips shall keep and cause its Subsidiaries to keep true and complete books of account containing an accurate record of all data necessary for the determination of
the amount of the royalty payments that shall become due under Article 3 hereof, and shall permit and cause its Subsidiaries to permit CDT, by a duly authorized independent auditor reasonably acceptable to Philips, to examine on a confidential basis
such books or accounts at all reasonable time during normal business hours (but not more than once in any Licensed Year) to such extent as may be necessary to determine the accuracy or inaccuracy of any of the statements to be rendered by Philips
pursuant to Article 5 hereof; provided, however, that the examination with respect to the books of any Licensed Year shall be made within three (3) years after the end of such Licensed Year. Such inspection shall be completed at the own expense of
CDT, provided that if any deficiency exceeding five percent (5%) of the money actually due is found in connection with the computation the cost of such inspection shall be borne by Philips. 
  
 Article 7 
  
 If Philips shall fail to render a statement, make proper payment or deliver a tax receipt or tax receipt copy hereunder when due and such
default shall continue for sixty (60) days after written notice thereof from CDT, or if Philips shall become insolvent, or file a petition in bankruptcy or insolvency or be adjudicated insolvent, CDT may terminate this Agreement and thus the
licenses herein granted upon ten (10) working days prior written notice to Philips. Any such termination shall be without prejudice to any accrued rights of CDT, including without limitation the license fee and minimum royalties under Articles
3.01(1) and 3.03, and all royalties earned prior to such termination. 
  
 Article 8 
  
 Except as otherwise specifically provided herein,
any notice or communication required or permitted hereunder shall be in writing, which shall be deemed to include facsimile provided the same is confirmed by prepaid post, posted within 48 hours of such facsimile, and may be sent by facsimile or by
prepaid registered air mail, addressed to the party concerned at such address as such party shall have notified to the party giving notice in writing for that purpose, failing which at the registered office or principal place of business of the
party receiving the notice. Any payments to be made hereunder by Philips to CDT shall be made in US Dollars and shall be transmitted, unless expressly indicated otherwise by CDT, by wire transfer to CDT’s account with TSB Bank p1c, 6 St.
Andrews Street, Cambridge, CB2 3AX, Sort Code 77-05-18, Account Number 9321 3468, mentioning as title for payment “Royalties LEP’s”. The date of giving of any such notice, receipt, report or other communication, and the date of making
any such payment, provided such payment is received, shall be the date the facsimile or payment was transmitted. The Post Office receipt showing the date of deposit shall be prima facie evidence of these facts in respect of postal transmission.

  

 7 

 Article 9 
  

If under otherwise similar and substantially the same conditions as contained in this Agreement, licenses under Patent Rights referred to and licensed pursuant to this
Agreement should be granted for Remuneration Products to any third party at a royalty rate more favourable than the rate payable by Philips under this Agreement, Philips shall be entitled to have the royalty rate applicable to it modified (subject
to undertaking such terms as are undertaken by such third party and in any event only from the date such royalty and terms apply to such third party) to such extent that the same shall be as favourable as that available to such third party.

  
 Article 10 
  

	10.01	At the option of either Party, the Parties shall discuss in good faith the possibility and the conditions for extending the licenses in this Agreement to [**].

  

	10.02	The Parties hereto agree to engage in good faith discussions to extend the period for including Patent Rights under Licensed Patent Rights until after January 1, 2001, such
discussions to be started at least six (6) months before that date. 

  
 Article 11 
  

	11.01	The licenses herein shall extend, to the extent specified, to the Subsidiaries of the Parties. 

  

	    	Neither Party to this Agreement shall assign or transfer any of its rights or privileges hereunder without the prior written consent of the other Party and without such
authorization or approval of any competent governmental authority as then may be required. 

  

	11.02	In the event either Party or their Subsidiaries’ undertakings, business or assets relating to the manufacture, sale and/or other disposal of Products are divested or are
acquired by any third party or the majority of the issued share capital of either Party or their Subsidiaries is acquired by any third party, the licenses granted hereunder to that Party or its Subsidiaries shall remain limited to its activities
before such event and shall not extend to any operations or activities with which that Party or its Subsidiaries’ activities are or become combined, merged or otherwise grow “unnaturally”. 

  

 8 

 Article 12 
  

	12.01	Either Party or its Subsidiaries may assign or otherwise transfer any of its Patent Rights subject to this Agreement; provided that such transfer and any subsequent transfer (i) is
made subject to the licensing commitments hereunder and (ii) does not cause the other Party to negotiate with or make any payments to any third party. 

  

	12.02	Nothing contained in this Agreement shall be construed as: 

  

	 	(i)	a restriction on the right of either Party or its Subsidiaries to make, use, sell or otherwise dispose of any particular product or products other than Products; or

  

	 	(ii)	a warranty or representation by either Party or its Subsidiaries as to the validity or scope of any Patent Rights licensed hereunder; or 

  

	 	(iii)	a warranty or representation that any manufacture, sale, use or other disposition of Products hereunder will be free from infringement of patent rights or other industrial or
intellectual property rights, under which no licenses have been granted under and pursuant to this Agreement; or 

  

	 	(iv)	an obligation on either Party or any of its Subsidiaries to file any patent application or to secure any patent rights or maintain any patent rights in force; or

  

	 	(v)	an agreement to bring or prosecute actions or suits against outside third parties for infringement or conferring any rights to bring or prosecute actions or suits against third
parties for infringement; or 

  

	 	(vi)	conferring any right to use in advertising, publicity, or otherwise, any trademark, trade name or names, or any contraction, abbreviation or simulation thereof, of either Party or
any of its Subsidiaries, except as otherwise agreed in writing; or 

  

	 	(vii)	conferring by implication, estoppel or otherwise, upon either Party or its Subsidiaries licensed hereunder, any license or other right under any patent rights or other industrial or
intellectual property rights except for the licenses and rights expressly granted hereunder; or 

  

	 	(viii)	an obligation to furnish any technical information or know-how; or 

  

	 	(ix)	requiring CDT to repay or account for any sums actually received or which have become due under this Agreement at the time in question. 

  

 9 

 Article 13 
  

	13.01	This Agreement shall be construed, and the performance thereof shall be enforced, in accordance with the laws of England. 

  

	13.02	All disputes arising out of or in connection with the interpretation or execution of this Agreement during its life or thereafter shall be finally settled according to the Rules of
Conciliation and Arbitration of the International Chamber of Commerce by one arbitrator chosen in accordance with the Rules. The Court of Arbitration shall convene at London, Great Britain, or such other place as the Parties may agree. The award of
the Court of Arbitration shall be final and binding. 

  

	13.03	If any question or matter arises as to the calculation or determination of Net Sales Value (in so far as it depends on the price or “arms length price” of any Remuneration
Products), either Party may refer the matter to an expert for determination. The Parties shall appoint such member of the Institute of Chartered Accountants in England, with relevant experience, as they may agree, or in the absence of agreement as
shall be nominated by the President for the time being of the Institute of Chartered Accountants, who shall decide the matter as soon as reasonably practicable, and in any event within 3 months of his appointment. 

  
 The costs of such appointment shall be borne by the Parties in such
proportion as the expert thinks fit. The Parties shall make available to the expert all such information and documents as he reasonably requires for the purpose of making his determination. The determination of the expert shall be final and binding
on both Parties. 
  

	13.04	The Parties shall keep the detailed terms of this Agreement confidential, and shall not now or hereafter divulge any such detailed terms to any outside third party except:

  

	 	(a)	with the prior written consent of the other Party; or 

  

	 	(b)	to any governmental body having jurisdiction to call therefor; or 

  

	 	(c)	as otherwise may be required by law or legal processes; or 

  

	 	(d)	in confidence to legal counsel or other professional advisers of either Party. 

  

	13.05	The waiver by either Party of a breach or default in any of the provisions of this Agreement by the other Party shall not be construed as a waiver by such Party of any succeeding
breach of the same or other provisions, nor shall any delay or 

  

 10 

	    	omission on the part of either Party to exercise or avail itself of any right, power or privilege that it has or may have hereunder, operate as a waiver of any right, power or
privilege by such Party. 

  

	13.06	This Agreement sets forth the entire agreement and understanding between the Parties hereto as to the subject matter hereof and merges and supersedes any and all prior discussions
between them. 

  
 This Agreement may not be amended
except in a written instrument signed by both Parties. 
  

	13.07	If any term, clause or provision of this Agreement shall be judged to be invalid, the validity of any other term, clause or provision shall not be thereby affected and such invalid
term, clause or provision shall be deemed deleted from this Agreement. 

  

	13.08	CDT and its Subsidiaries shall not be liable for any employee, public or product liability arising out of or based on any exercise by Philips or its Subsidiaries of the license
granted under this Agreement and Philips shall indemnify CDT and its Subsidiaries and hold them harmless against all claims, actions, losses and costs (including reasonable legal costs) pursuant to any claim or action by any third party against CDT
or its Subsidiaries for the same. 

  
 Philips and
its Subsidiaries shall not be liable for any employee, public or product liability arising out of or based on any exercise by CDT or its Subsidiaries of the license granted under this Agreement and CDT shall indemnify Philips and Its Subsidiaries
and hold them harmless against all claims, actions, losses and costs (including reasonable legal costs) pursuant to any claim or action by any third party against Philips or its Subsidiaries for the same. 
  
 The Party relying on such indemnity shall inform the other promptly of any
such claim or action, and the other Party shall, subject to suitable security being given in respect of any liability which the indemnified Party may incur in the proceedings, be entitled to have the conduct of any proceedings or settlement
negotiations. The indemnifying Party shall keep the indemnified Party fully informed and shall not settle the proceedings or incur any liability on the part of the indemnified Party without prior written consent of the indemnified Party, such
consent not to be unreasonably withheld. 
  
 Each Party receives
and holds the indemnity herein as agent and trustee of its Subsidiaries. 
  

	13.09	Each Party agrees to notify the other promptly of any apparent infringement by any third party of any of the rights licensed to it hereunder on becoming aware of the same. However,
any inadvertent failure to observe this obligation shall not, without more, be considered as a material breach of the Agreement. 

  

 11 

	13.10	For a minimum period of ten (10) years from the Effective Date, Philips shall ensure that published technical material relating to Remuneration Products so far as reasonable carries
the notice “Manufactured under licence from CDT” or similar language or a translation thereof. However, any failure to observe this obligation shall not be considered as a material breach of the Agreement. 

  
 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their
duly authorized representatives. 
  

							
	 Cambridge Display Technology, Ltd.
	  	Philips Electronics N.V.
				
	 By:
	 	 /s/ David Fyfe

	  	By:	  	 /s/ E.P. Continho

				
	 Title:
	 	Chief Executive	  	Title:	  	Authorized Signatory
				
	 Date:
	 	12.8.1996	  	Date:	  	12-8-1996

  

 12

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