Document:

CSR Save As You Earn Option Plan

 Exhibit 10.4 
  
 RULES OF 
  
 CSR plc SAYE SCHEME 
  
  
  
 This is a copy of the rules of the CSR plc SAYE SCHEME 
 as produced to the meeting of the Board of
Directors on 
 15 September 2006 and signed by the Chairman 
 for the purpose of identification only 
  
  
 Chairman 
  
  
  
 Approved by the Board on 26th February 2004 
  
 Approved by the Inland Revenue 
 on 26th February under reference SRS2842/GRP 
  
 Amended by the Board on 15th September 2006 
  
 Approved by HM Revenue and Customs on [insert date] under reference SRS2842/GRP 
  
 Deloitte & Touche LLP 
 180 Strand 
 London 
 WC2R 1BL 
 tel. 020 7438 3000 

 TABLE OF CONTENTS 
  

					
	Rules of CSR plc SAYE Scheme	  	
			
	 1.
	  	Interpretation and Construction	  	
			
	 2.
	  	Application for Options	  	
			
	 3.
	  	Scaling Down	  	
			
	 4.
	  	Grant of Options	  	
			
	 5.
	  	Number of Shares in respect of which Options may be granted	  	
			
	 6.
	  	Rights To Exercise Options	  	
			
	 7.
	  	Lapse of Options	  	
			
	 8.
	  	Takeover, reconstruction and liquidation	  	
			
	 9.
	  	Manner of Exercise	  	
			
	 10.
	  	Issue or Transfer of Shares	  	
			
	 11.
	  	Adjustments	  	
			
	 12.
	  	Administration	  	
			
	 13.
	  	Alterations	  	
			
	 14.
	  	General	  	
		
	Schedule—US Plan	  	

 Rules of CSR plc SAYE Scheme 
  

	1.	INTERPRETATION AND CONSTRUCTION 

  

	1.1	Definitions 

  

	  	In this Plan, the following words and expressions shall bear, unless the context otherwise requires, the meanings set out below: 

  

			
	 Words/expressions
	  	 Meaning

	 “Acquiring Company”
	  	a company which has obtained Control of Cambridge Silicon Radio in accordance with any of the provisions of Rule 8.7;
		
	 “Appropriate Period”
	  	the meaning given by paragraph 38(3) of Schedule 3;
		
	 “Associated Company”
	  	an associated company of Cambridge Silicon Radio within the meaning of the expression in paragraph 47 of Schedule 3;
		
	 “Board”
	  	the board of directors of Cambridge Silicon Radio, or a duly authorised committee of it;
		
	 “Bonus Date”
	  	the date on which the bonus becomes payable under the Sharesave Contract made in connection with an Option being, in the case of a three year contract, the date of completion of 36 monthly
contributions, in the case of a five year contract, the date of completion of 60 monthly contributions and, in the case of a seven year contract, the second anniversary of the date of completion of 60 monthly contributions;
		
	 “Business Day”
	  	any day on which the London Stock Exchange is open for the transaction of business;
		
	 “Cambridge Silicon Radio”
	  	CSR plc (registered in United Kingdom under no 04187346);
		
	 “Close Company”
	  	a close company as defined in section 414(1) of the Taxes Act as varied by paragraph 11 of Schedule 3;
		
	 “Compromise”
	  	a compromise or arrangement proposed for the purposes of, or in connection with, a scheme for the reconstruction of Cambridge Silicon Radio or its amalgamation with any other company or
companies, which the court sanctions under legislation, which the Inland Revenue accepts is equivalent to section 425 of the Companies Act 1985;
		
	 “Control”
	  	the meaning given by section 840 of the Taxes Act;
		
	 “Date of Invitation”
	  	the date on which the Remuneration Committee invites applications for Options;
		
	 “Eligible Employee”
	  	 any individual who:
  
 (a)    is a director or bona fide employee of a Participating Company on terms which, if he is a
director, require him to devote at least 25 hours a week, to his duties (excluding meal breaks); and either
  
 (i)     has such qualifying period (if any) of continuous service (being a period commencing not earlier
than five years prior to the Grant Date) as the Remuneration Committee may determine; and is subject to income tax under ITEPA; or
  
 (ii)    is nominated by the Remuneration Committee either individually or as a member of a category of such
full time directors or employees

			
	 Words/expressions
	  	 Meaning

		  	 (b)    has not at the Grant Date, and has not had within the preceding twelve months, a
Material Interest in a Close Company which is:
  
 (i)          Cambridge Silicon Radio; or
  
 (ii)        a company which has Control of Cambridge Silicon Radio or is a Member of a
Consortium which owns Cambridge Silicon Radio;

		
	 “Employees’ Share Scheme”
	  	the meaning given by section 743 of the Companies Act 1985;
		
	 “Exercise Price”
	  	the price per Share, as determined by the Board, at which an Eligible Employee may acquire Shares upon the exercise of an Option being not less than the higher of 80% of their Market Value on
the Invitation Date, and, in the case of an Option that is a right to subscribe for Shares, their nominal value, but subject to any adjustment pursuant to Rule 11;
		
	 “Grant Date”
	  	the date on which the Grantor grants an Option to an Eligible Employee;
		
	 “Grant Period”
	  	 the period of 42 days commencing on the day on which the Plan is approved by the Inland Revenue and any of the following:
  
 (a)    the day immediately
following the day on which Cambridge Silicon Radio makes an announcement of its results for the last preceding financial year, half-year or other period;
  
 (b)    any day on which the Board resolves that exceptional circumstances exist which justify the grant of
Options;
  
 (c)    the day on which changes are announced, effected or made to the legislation or regulations affecting share option schemes approved by the Inland Revenue;
  
 (d)    the date of commencement
of an Eligible Employee’s employment with a Participating Company, but only in respect of that Eligible Employee;
  
 (e)    any day on which a new Sharesave Contract prospectus is announced or takes effect;
  
 (f)     the day on which
Listing occurs
  
 provided that if the Grantor cannot grant Options due to
primary or secondary legislation, regulation or government directive or due to any code adopted by Cambridge Silicon Radio (including by reason of its capital being listed on a stock exchange) the relevant Grant Period shall be 42 days commencing on
the day after the restriction is lifted and provided further that no Options shall be granted prior to the date on which the Plan is formally approved by the Inland Revenue;

		
	 “Grantor”
	  	the Board (acting on behalf of Cambridge Silicon Radio) or the Trustees acting on the recommendation or with the consent of the Board (as the case may be);
		
	 “Group Member”
	  	Cambridge Silicon Radio and any Participating Company and “Group Company” shall be construed accordingly
		
	 “ITEPA”
	  	the Income Tax (Earnings and Pensions) Act 2003;

			
	 Words/expressions
	  	 Meaning

	 “Listing”
	  	The first grant of permission to deal in all or any of the ordinary share capital of the Company on the Alternative Investment Market of the London Stock Exchange or the first admission of any
part of the ordinary share capital of the Company to trading on the London Stock Exchange or any other Recognised Investment Exchange.
		
	 “London Stock Exchange”
	  	the stock exchange operated by London Stock Exchange plc or any successor operating the same;
		
	 “Market Value”
	  	 in relation to a Share on any day
  
 (A)   if and so long as the Date of Invitation is the date of Listing, the Flotation Price, as agreed in advance
with the Inland Revenue or such other price as agreed with the Inland Revenue; and thereafter;
  
 (B)   if and so long as the Shares are listed on the London Stock Exchange, their closing middle market quotation
(as derived from the Daily Official List) for the immediately preceding Dealing Day, or if the Grantor determines, the average of the closing middle market quotations over the three immediately preceding Dealing Days, or such other price over such
period as may be agreed in writing with the Inland Revenue (provided that Options are granted within 30 days of the first day by reference to which the Market Value was calculated); or
  
 (C)   subject to (A) and (B) above, its market value, determined in accordance with
Part VIII of the Taxation of Chargeable Gains Act 1992 and agreed in advance with Inland Revenue Shares Valuation

		
	 “Material Interest”
	  	the meaning given by paragraph 11 of Schedule 3;
		
	 “Maximum Contribution”
	  	 the lesser of:
  
 (a)    such maximum monthly contribution as may be permitted pursuant to paragraph 25 of Schedule 3;
or
  
 (b)    such
maximum monthly contribution as may be determined from time to time by the Remuneration Committee;

		
	 “Member of a Consortium”
	  	the meaning given by paragraph 48(2) of Schedule 3;
		
	 “Modified Plan”
	  	a sub-plan to the Plan under which options granted will not be subject to the SAYE Code;
		
	 “Monthly Contributions”
	  	monthly contributions agreed to be paid by an Option Holder under the Sharesave Contract made in connection with his Option;
		
	 “Normal Retirement Age”
	  	in relation to an Option Holder, any age at which he is either bound or entitled to retire in accordance with his contract of employment;
		
	 “Option Holder”
	  	a director or employee, or former director or employee, to whom an Option has been granted or (where the context so admits or requires) the personal representatives of any such
person;
		
	 “Option”
	  	a right to acquire Shares under the Plan which is either subsisting or (where the context so admits or requires) is proposed to be granted;
		
	 “Ordinary Share Capital”
	  	the meaning given by section 832(1) of the Taxes Act;
		
	 “Participating Company”
	  	 (a)    Cambridge Silicon Radio; and
  
 (b)    Any other company which
is under the Control of Cambridge Silicon Radio, is a Subsidiary of Cambridge Silicon Radio, except one which the Board has determined shall not be a Participating Company

			
	 Words/expressions
	  	 Meaning

		
	 “Plan”
	  	The CSR plc SAYE Scheme in its present form or as from time to time amended in accordance with the provisions hereof;
		
	 “Proscribed Period”
	  	the period of eight weeks preceding the announcement of Cambridge Silicon Radio’s annual or interim results to the London Stock Exchange or any other time at which dealings in Plan
Shares by directors would be proscribed due to the existence of unpublished price-sensitive information, whether by the Model Code of the UK Listing Authority, the Criminal Justice Act 1993, Cambridge Silicon Radio’s code on insider dealing or
otherwise;
		
	 “Remuneration Committee”
	  	a duly appointed Committee of the Board comprising a majority of directors who do not hold any executive office with Cambridge Silicon Radio or any of its subsidiaries, or who will not
themselves participate in the Plan;
		
	 “Repayment”
	  	in relation to a Sharesave Contract, the aggregate of the Monthly Contributions which the Option Holder has made and, subject to Rule 2.2(e), any bonus due at the Bonus Date;
		
	 “Rules”
	  	these rules together with any schedules or appendices to these rules;
		
	 “SAYE Code”
  
 “Schedule 3”
	  	 the meaning given by s516 ITEPA
  
 Schedule 3 to ITEPA

		
	 “Schedule 4”
	  	Schedule 4 to ITEPA
		
	 “Share”
	  	a share in the Ordinary Share Capital of Cambridge Silicon Radio which satisfies the conditions specified in Part 4, paragraphs 18-22 of Schedule 3;
		
	 “Sharesave Contract”
	  	a contract under a certified contractual savings scheme (within the meaning of section 326 of the Taxes Act) approved by the Inland Revenue for the purpose of Schedule 3;
		
	 “Specified Age”
	  	60 years of age;
		
	 “Subsidiary”
	  	the meaning given by sections 736 and 736A of the Companies Act 1985;
		
	 “Taxes Act”
	  	the Income and Corporation Taxes Act 1988;
		
	 “Total Acquisition Price”
	  	the amount payable in relation to the exercise of an Option, whether in whole or in part, being an amount equal to the relevant Exercise Price multiplied by the number of Shares in respect of
which the Option is exercised;
		
	 “Trustees”
	  	the trustees for the time being of any employee benefit trust established for the benefit of all or substantially all of the Eligible Employees;
		
	 “UK Listing Authority”
	  	the Financial Services Authority as the competent authority for listing in the United Kingdom under section 74(4) of the Financial Services and Markets Act 2000;

	1.2	Construction 

  

	    	Words or expressions used herein shall where appropriate: 

  

	 	(a)	when denoting the masculine gender include the feminine and vice versa; 

  

	 	(b)	when denoting the singular include the plural and vice versa; 

  

	 	(c)	when referring to any enactment shall include reference to any substantially equivalent foreign legislation (which in the case of Rule 8 is accepted by the Inland Revenue as being
equivalent) and be construed as a reference to that enactment as for the time being consolidated, amended, re-enacted or replaced and shall include any subordinate legislation made there under; and 

  

	 	(d)	be construed such that the headings and sub-headings are for ease of reference only and do not affect the interpretation of any Rule. 

  

	2.	APPLICATION FOR OPTIONS 

  

	2.1	Issue of Invitations 

  

	  	The Remuneration Committee may invite applications for Options from Eligible Employees. Invitations shall only be made within a Grant Period. 

  

	2.2	Contents of Invitation 

  

	  	Any invitation to apply for Options shall be sent in writing or in electronic format and in such form as the Remuneration Committee may from time to time prescribe to all Eligible
Employees save that it shall include details of: 

  

	 	(a)	eligibility; 

  

	 	(b)	the Exercise Price or the mechanism by which the Exercise Price will be notified to Eligible Employees (which for the avoidance of doubt, may be different in respect of three, five
and/or seven year Sharesave Contracts); 

  

	 	(c)	the Maximum Contribution payable; 

  

	 	(d)	whether the Eligible Employees may elect for a three, five or seven year Sharesave Contract; 

  

	 	(e)	whether, for the purpose of determining the number of Shares over which an Option is to be granted, the Repayment under the Sharesave Contract is to be taken as including the
maximum bonus, the standard bonus, or no bonus; 

  

	 	(f)	the date by which applications made pursuant to Rule 2.3 must be received (being neither earlier than 14 days nor later than 25 days after the Date of Invitation),

  

	  	and the Remuneration Committee may determine and include in the invitations details of the maximum number of Shares over which applications for Options are to be invited.

  

	2.3	Application for Sharesave Contract 

  

	  	Applications for Options must incorporate or be accompanied by an application for a Sharesave Contract. 

  

	2.4	Contents of Application 

  

	  	An application for an Option shall be in writing or in electronic format and in such form as the Remuneration Committee may from time to time prescribe save that it shall provide
for the applicant to state: 

  

	 	(a)	the Monthly Contributions (being a multiple of £1 and not less than £5 nor greater than £10) which he wishes to make under the Sharesave Contract to be made in
connection with the Option for which application is made; 

  

	 	(b)	that his proposed Monthly Contributions (when taken together with any monthly contributions he makes under any other Sharesave Contract) will not exceed the Maximum Contribution of
£250; 

	 	(c)	if Eligible Employees may elect for a three, five or seven year Sharesave Contract, his election in that respect. 

  

	2.5	Provision for Scaling Down 

  

	  	Each application for an Option shall provide that, in the event of excess applications, each application shall be deemed to have been modified or withdrawn in accordance with the
steps taken by the Remuneration Committee to scale down applications pursuant to Rule 3. 

  

	2.6	Selection of Savings Carrier 

  

	  	Proposals for a Sharesave Contract shall be limited to such building society or bank as the Remuneration Committee may designate. 

  

	2.7	Number of Shares Applied for 

  

	  	Each application shall be deemed to be for an Option over the largest whole number of Shares which can be acquired at the Exercise Price with the expected Repayment at the Bonus
Date under the Sharesave Contract entered into in connection with the Option. 

  

	2.8	Multiple Applications 

  

	  	Eligible Employees may apply for more than one Option in response to any invitation. However, where an Eligible Employee applies for more than one Option, he shall be deemed for the
purposes of Rule 3 to have applied for a single Option. 

  

	3.	SCALING DOWN 

  

	3.1	Process for Scaling Down 

  

	  	If valid applications are received for a total number of Shares in excess of any maximum number of Shares determined by the Remuneration Committee pursuant to Rule 2.2, or any
limitation under Rule 5, the Remuneration Committee shall scale down applications by taking, at its absolute discretion, any of the following steps until the number of Shares available equals or exceeds such total number of Shares applied for:

  

	 	(a)	by treating any elections for the maximum bonus (being that bonus receivable if savings are made under a seven year contract) as elections for the standard bonus (being that bonus
receivable if savings are made under a five year contract) and then, so far as necessary, by reducing the proposed Monthly Contributions pro rata to the excess over such amount as the Remuneration Committee shall determine for this purpose
being not less than £5 and then, so far as necessary selecting by lot; or 

  

	 	(b)	by treating each election for a bonus as an election for no bonus and then, so far as necessary, by reducing the proposed Monthly Contributions pro rata to the excess over
such amount as the Remuneration Committee shall determine for this purpose being not less than £5 and then, so far as necessary, selecting by lot; or 

  

	 	(c)	by reducing the proposed Monthly Contributions pro rata to the excess over such amount as the Remuneration Committee shall determine for this purpose being not less than
£5 and then, so far as necessary, selecting by lot. 

  

	3.2	Cancellation of Offer 

  

	  	If the number of Shares available is insufficient to enable an Option based on Monthly Contributions of £5 a month to be granted to each Eligible Employee making a valid
application, the Remuneration Committee may, as an alternative to selecting by lot, determine in its absolute discretion that no Options shall be granted. 

	3.3	Modification of Process 

  

	  	If the Remuneration Committee so determines, the provisions in Rule 3.1(a), 3.1(b) and 3.1(c) may be modified or applied in any manner as may be agreed in advance with the Inland
Revenue. 

  

	3.4	Extension of Grant Period 

  

	  	If, in applying the scaling down provisions contained in this Rule 3, Options cannot be granted within the 30 day period referred to in Rule 4.4, the Remuneration Committee may
extend that period by twelve days regardless of the expiry of the relevant period set out in Rule 2.1. 

  

	4.	GRANT OF OPTIONS 

  

	4.1	Grant Period 

  

	  	The Grantor may grant Options only during a Grant Period, except that if part or all of the Grant Period coincides with a Proscribed Period, then the Remuneration Committee may
grant Options within the period of 42 days following the end of the Proscribed Period. 

  

	4.2	Grant Date 

  

	  	Options shall be granted on no later than the thirtieth date, or if Rule 3 applies forty second day, following the day on which invitations were issued pursuant to Rule 2.

  

	4.3	Persons to whom Options may not be granted 

  

	  	No Option shall be granted to any person if at the Grant Date that person shall have ceased to be an Eligible Employee. 

  

	4.4	Grant within 30 days of Determination of Exercise Price 

  

	  	Within 30 days of the day (or the first day) by reference to which the Exercise Price was calculated if the shares are listed on the Official List of the London Stock Exchange or,
if the Shares are not so listed, the date agreement is reached with the Inland Revenue as to the Market Value of a Share, the Remuneration Committee may, subject to Rule 3 above, grant to each Eligible Employee who has submitted a valid application,
an Option in respect of the number of Shares for which application has been deemed to be made under Rule 2.7. The grant of such Options shall occur within the Grant Period. 

  

	4.5	Issue of Option Certificate 

  

	  	As evidence of the grant of an Option, Cambridge Silicon Radio shall execute a document, which may be in respect of an individual Option or any number of Options granted at the same
time. This document shall be sealed or executed in such a manner as to take effect in law as a legally binding obligation of Cambridge Silicon Radio As soon as practicable after the Grant Date, Cambridge Silicon Radio shall issue to each Option
Holder an option certificate in such form (consistent with the provisions of the Plan) as the Grantor may from time to time prescribe. Each such certificate shall specify the Grant Date of the Option, the number and class of Shares over which the
Option is granted, the Bonus Date and the Exercise Price. 

  

	4.6	Limit on Contributions 

  

	  	No Eligible Employee shall be granted an Option to the extent it would at the proposed Grant Date cause the aggregate amount of his contributions under all Sharesave Contracts to
exceed the Maximum Contribution. 

  

	4.7	Non-Transferability 

  

	  	Except as provided in the Plan, every Option shall be personal to the Option Holder to whom it is granted and shall not be transferable. 

	4.8	Options granted Free of Charge 

  

	  	No amount shall be paid in respect of the grant of an Option. 

  

	4.9	Approvals 

  

	  	The grant of an Option or the delivery of any Shares following its exercise shall be subject to obtaining any approval or consent required under any applicable laws, regulations or
governmental authority and the requirements of the UK Listing Authority, and any other securities exchange on which the Shares are traded. 

  

	5.	NUMBER OF SHARES IN RESPECT OF WHICH OPTIONS MAY BE GRANTED 

  

	5.1	Ten Per Cent limit on all Employees’ Share Schemes 

  

	  	The number of Shares which may be allocated under the Plan on any day shall not, when aggregated with the number of Shares which have been allocated on or after the date on which
the Listing of Cambridge Silicon Radio occurs and in the previous ten years under the Plan and any other Employees’ Share Scheme adopted by Cambridge Silicon Radio, or any company under the Control of Cambridge Silicon Radio, exceed ten per
cent of the Ordinary Share Capital of Cambridge Silicon Radio in issue immediately prior to that day. 

  

	5.2	Determining Limit 

  

	  	In determining the above limit 

  

	 	(a)	no account shall be taken of any Shares the right to acquire which has been released, lapsed or otherwise become incapable of exercise 

  

	 	(b)	any Shares allocated to the Trustees under the Plan or any other Employees’ Share Scheme adopted by Cambridge Silicon Radio shall be included; 

  

	 	(c)	no account shall be taken of any Shares where the right to acquire the Shares was granted on or before Cambridge Silicon Radio was admitted to Listing; and 

 

	 	(d)	no account shall be taken of any Shares awarded by Cambridge Silicon Radio before a Listing. 

  

	5.3	Meaning of “Allocated” 

  

	  	References in this Rule to “allocated” shall mean, in the case of any share option scheme, the placing of unissued Shares under option and, in relation to other types of
Employees’ Share Scheme, shall mean the commitment to issue or the issue and allotment of Shares (whichever is the earlier). 

  

	6.	RIGHTS TO EXERCISE OPTIONS 

  

	6.1	No exercise before Bonus Date 

  

	  	Save as provided in Rules 6.6, 6.8, 6.11 and 8, an Option shall not be exercised earlier than the Bonus Date under the Sharesave Contract entered into in connection with the Option.

  

	6.2	No exercise more than six months after Bonus Date 

  

	  	Save as provided in Rule 6.6, an Option shall not be exercised later than six months after the Bonus Date under the Sharesave Contract entered into in connection with the Option.

  

	6.3	Partial Exercise 

  

	  	An Option may be exercised in part only, however, if such partial exercise occurs the unexercised part shall lapse at the date of exercise. 

	6.4	Requirement of Continued Employment 

  

	  	Save as provided in Rules 6.6, 6.7, 6.8, and Rule 8, an Option Holder may exercise an Option only while he is a director or employee of a Participating Company.

  

	6.5	Option Holder with Material Interest 

  

	  	An Option Holder may not exercise an Option if he has, or has had at any time within the twelve month period preceding the date of exercise, a Material Interest in the issued
Ordinary Share Capital of a Close Company which is Cambridge Silicon Radio or a company which has Control of Cambridge Silicon Radio or is a Member of a Consortium which owns Cambridge Silicon Radio. 

  

	6.6	Death of the Option Holder 

  

	  	The personal representatives of a deceased Option Holder may exercise his Option to the extent of the Repayment due under the Sharesave Contract at the date of death within one year
following the date of his death, if such death occurs before the Bonus Date or within twelve months following the Bonus Date in the event of his death within six months after the Bonus Date. 

  

	6.7	Retirement 

  

	  	If an Option Holder ceases to be a director of employee of a Group Member as a result of retirement at Normal Retirement Age, he may, subject to Rule 9.1, exercise a proportion of
his Option within six months of the expiry of the Option Period (which proportion shall reflect the number of months of the Option Period which have elapsed at the date of retirement). 

  

	6.8	Termination of Employment 

  

	  	An Option may, to the extent of the Repayment due under the Sharesave Contract at the date of cessation, be exercised by an Option Holder within six months following the date on
which the Option Holder ceases to hold an office or employment with a Group Member in accordance with the following provisions: 

  

	 	(a)	if such cessation is as a result of the circumstances mentioned in Rules 6.9 (a) and (c); 

  

	 	(b)	The Option Holder may exercise the Option if the cessation is as a result of and in accordance with the conditions or circumstances mentioned in Rules 6.9(b), 6.9 (d) 6.9 (e),
6.9 (f), 6.9 (g) and 6.9 (h). 

  

	6.9	Permitted Exercise Circumstances 

  

	 	(a)	injury or disability; 

  

	 	(b)	pregnancy, but only if cessation of office or employment is more than three years after the Grant Date; 

  

	 	(c)	redundancy within the meaning of the Employment Rights Act 1996; 

  

	 	(d)	retirement at any age at which he is entitled to retire in accordance with the terms of his contract of employment (other than at the Specified Age or any age at which he is bound
to retire), early retirement with the agreement of the employer, but in each case only if such cessation of office or employment is more than three years after the Grant Date; 

  

	 	(e)	the Participating Company of which he is a director, or which employs him, ceasing to be under the Control of Cambridge Silicon Radio, provided that the Option Holder is employed by
the Participating Company on the change of Control; 

  

	 	(f)	the company which employs him (not being under the Control of Cambridge Silicon Radio) ceasing to be an Associated Company, but only if cessation of office or employment is a result
of the circumstances mentioned in Rule 6.7, 6.9 (a) and (c) and 6.12; 

	 	(g)	the transfer or sale of the undertaking or part-undertaking of a Participating Company in which he is employed at that time to a person who is neither under the Control of Cambridge
Silicon Radio nor an Associated Company; 

  

	 	(h)	(if more than three years have passed since the Grant Date of that Option), any other reason. 

  

	6.10	Pregnancy 

  

	  	For the purpose of this Rule 6, a woman who leaves employment due to pregnancy will be regarded as having left on the earliest of, 

  

	 	(a)	the date she notifies her employer of her intention not to return, 

  

	 	(b)	where she is entitled to additional maternity leave, the last day of the twenty nine week period beginning with the week of childbirth (or, where the employee takes up to four
weeks’ parental leave immediately following this period, the last day of this period of parental leave), 

  

	 	(c)	where she is not entitled to additional maternity leave (and provided she has fulfilled any other criteria in this regard) the last day of the eighteen week period beginning with
the week of childbirth, and 

  

	 	(d)	any other date specified by the terms of her office or employment. 

  

	6.11	Exercise on Reaching Specified Age 

  

	  	An Option may, to the extent of the Repayment due under the Sharesave Contract at the date of reaching the Specified Age, be exercised by an Option Holder within six months
following the date he reaches the Specified Age if he continues after that date to hold the office or employment by virtue of which he is eligible to participate in the Plan. 

  

	6.12	Option Holder ceasing to be employed by Participating Company 

  

	  	If an Option Holder ceases to be a director or employee of a Participating Company, but on the Bonus Date is an employee or director of an Associated Company or a company of which
Cambridge Silicon Radio has Control, he may exercise his Option within six months of that date. 

  

	6.13	Transfer of Employment within Group 

  

	  	No person shall be treated for the purposes of Rule 6 as ceasing to hold an office or employment by virtue of which that person is eligible to participate in the Plan until that
person ceases to hold any office or employment in Cambridge Silicon Radio or any Associated Company or any company of which Cambridge Silicon Radio has Control. 

  

	7.	LAPSE OF OPTIONS 

  

	7.1	General 

  

	  	Options shall lapse upon the occurrence of the earliest of the following events: 

  

	 	(a)	subject to Rule 7.1(c), six months after the Bonus Date under the Sharesave Contract entered into in connection with the Option; 

  

	 	(b)	before an Option has become capable of being exercised, the Option Holder giving notice that he intends to stop paying Monthly Contributions, or being deemed under the terms of the
Sharesave Contract to have given such notice by making an application for repayment of the Monthly Contributions; 

  

	 	(c)	where the Option Holder dies before the Bonus Date, twelve months after the date of death, and where the Option Holder dies in the period of six months after the Bonus Date, twelve
months after the Bonus Date; 

	 	(d)	the expiry of any of the periods specified in Rules 6.6 and 6.7 (save that if at the time any of the applicable periods under Rule 6.7 expire, time is running under the period in
Rule 6.6, the Option shall not lapse by reason of this Rule 7(d) until the expiry of the period under Rule 6.6); 

  

	 	(e)	the expiry of any of the periods specified in Rules 8.1, 8.3, 8.4 and 8.5 save where an Option is released in consideration of the grant of a New Option (during one of the periods
specified in Rules 8.3 and 8.4) pursuant to Rule 8.7; 

  

	 	(f)	the Option Holder ceasing to hold an office or employment with a Participating Company or an Associated Company, howsoever that cessation occurs whether lawful or unlawful, in any
circumstances other than: 

  

	 	(i)	where the cessation of office or employment arises on any of the grounds specified in Rules 6.6, 6.7 and 6.8; or 

  

	 	(ii)	where the cessation of office or employment arises on any ground whatsoever during any of the periods specified in Rule 8; 

  

	 	(g)	subject to Rule 8.5, the passing of an effective resolution, or the making of an order by the Court, for the winding-up of Cambridge Silicon Radio; 

  

	 	(h)	the Option Holder being deprived (otherwise than on death) of the legal or beneficial ownership of the Option by operation of law, or doing or omitting to do anything which causes
him to be so deprived or he becomes bankrupt; 

  

	 	(i)	the expiry of the Appropriate Period, except where an Option is released in consideration of a New Option pursuant to Rule 8.7. 

  

	8.	TAKEOVER, RECONSTRUCTION AND LIQUIDATION 

  

	8.1	General Offer 

  

	  	Subject to Rules 8.3 and 8.6, if any person obtains Control of Cambridge Silicon Radio as a result of making an offer to acquire Shares which is either unconditional or is made on a
condition such that if it is satisfied the person making the offer will have Control of Cambridge Silicon Radio, an Option may be exercised within six months of the time when the person making the offer has obtained Control of Cambridge Silicon
Radio and any condition subject to which the offer is made has been satisfied or waived. 

  

	8.2	Control 

  

	  	For the purposes of Rule 8.1 a person shall be deemed to have obtained Control of Cambridge Silicon Radio if he and others acting in concert with him have together obtained Control
of it. 

  

	8.3	Compulsory Purchase of Minority Shareholdings 

  

	  	Subject to Rule 8.6, if any person becomes bound or entitled to acquire Shares under legislation, which the Inland Revenue accepts is equivalent to Sections 428 to 430F of the
Companies Act 1985 an Option may be exercised, at any time when that person remains so bound or entitled. 

  

	8.4	Compromise 

  

	  	If a Compromise is proposed the following applies: 

  

	 	(a)	Cambridge Silicon Radio shall notify all Option Holders at the same time as it sends notices to members of Cambridge Silicon Radio calling the meeting to consider the Compromise;

  

	 	(b)	Subject to Rule 8.6, Options may then be exercised on the Compromise being sanctioned by the Court and becoming effective before the earlier of the expiry of six months from the
date of such notice and the date on which the Compromise becomes effective; 

	 	(c)	to the extent unexercised, Options shall lapse on the Compromise being sanctioned by the Court and becoming effective; and 

  

	 	(d)	after exercising an Option the Option Holder shall transfer or otherwise deal with the Shares issued to him so as to place him in the same position (so far as possible) as would
have been the case if such Shares had been subject to the Compromise. 

  

	8.5	Liquidation 

  

	  	If notice is duly given of a resolution for the voluntary winding-up of Cambridge Silicon Radio, Cambridge Silicon Radio shall notify all Option Holders. Options may then be
exercised until the resolution is duly passed or defeated or the meeting concluded or adjourned indefinitely. If the resolution is duly passed all Options shall, to the extent that they have not been exercised, lapse immediately.

  

	8.6	Mandatory Exchange 

  

	 	(a)	Rules 8.1, 8.3 and 8.4 shall not apply where: 

  

	 	(i)	the events are part of a scheme or arrangement whereby another company (“the Acquiror”) obtains Control of Cambridge Silicon Radio; 

  

	 	(ii)	immediately after the Acquiror obtains Control, the issued ordinary share capital of the Acquiror is owned materially (i.e. 75%) by the same persons who were equity shareholders of
Cambridge Silicon Radio immediately prior to the Acquiror obtaining Control; 

  

	 	(iii)	the Acquiror agrees to grant New Options in accordance with Rule 8.7 in consideration for the release of any Options which have not lapsed. 

  

	8.7	Exchange of Options 

  

	  	If any company: 

  

	 	(a)	obtains Control of Cambridge Silicon Radio as a result of making: 

  

	 	(i)	a general offer to acquire the whole of the issued Ordinary Share Capital of Cambridge Silicon Radio which is made on a condition such that if it is satisfied the Acquiring Company
will have Control of Cambridge Silicon Radio; or 

  

	 	(ii)	a general offer to acquire all the shares in Cambridge Silicon Radio which are of the same class as the Shares which may be acquired on the exercise of Options; or

  

	 	(b)	obtains Control of Cambridge Silicon Radio in pursuance of a Compromise sanctioned by the Court under legislation, which the Inland Revenue accepts is equivalent to section 425 of
the Companies Act 1985; or 

  

	 	(c)	becomes bound or entitled to acquire Shares under legislation, which the Inland Revenue accepts is equivalent to sections 428 to 430F of the Companies Act 1985; or

  

	 	(d)	obtains Control in circumstances where Rule 8.6 applies, 

  

	  	any Option Holder may at any time within the Appropriate Period, by agreement with the relevant company, release any Option which has not lapsed (“the Old Option”) in
consideration of the grant to him of an Option (“the New Option”) which (for the purposes of paragraph 39 of Schedule 3 to ITEPA) is equivalent to the Old Option but relates to shares in a different company (whether the Acquiring Company
itself or some other company falling within paragraph 18(b) or (c) of Schedule 3). 

  

	8.8	Meaning of “equivalent” 

  

	  	The New Option shall not be regarded for the purposes of Rule 8.7 as equivalent to the Old Option unless the conditions set out in paragraph 39(4) of Schedule 3 are satisfied, but
so that the provisions of the Plan shall for this purpose be construed as if: 

  

	 	(a)	the New Option were an option granted under the Plan at the same time as the Old Option; 

	 	(b)	except for the purposes of the definitions of “Participating Company” and “Subsidiary” in Rule 1.1, the reference to Cambridge Silicon Radio Holdings PLC in the
definition of “Cambridge Silicon Radio” in Rule 1.1 were a reference to the different company mentioned in Rule 8.7; and 

  

	 	(c)	Rules 13.1. 

  

	9.	MANNER OF EXERCISE 

  

	9.1	Limitation to Repayment under Savings Contract 

  

	  	An Option may only be exercised during the periods specified in Rules 6 and 8, and only with monies not exceeding the amount of the Repayment under the Sharesave Contract entered
into in connection therewith as at the date of such exercise. For this purpose, no account shall be taken of such part (if any) of the Repayment, of any Monthly Contribution, the due date for the payment of which under the Sharesave Contract arises
after the date of the Repayment. 

  

	9.2	Procedure on Exercise 

  

	  	An Option may be exercised, in whole or in part, subject to applicable law, by the delivery in writing or in electronic format and in such form as the Remuneration Committee may
from time to time prescribe, to the Secretary of Cambridge Silicon Radio or its duly appointed agent of the following: 

  

	 	(a)	an option certificate covering at least all of the Shares over which the Option is then to be exercised; 

  

	 	(b)	the notice of exercise in the prescribed form duly completed and signed by the Option Holder (or by his duly authorised agent); and 

  

	 	(c)	a remittance for the Total Acquisition Price, or authority to Cambridge Silicon Radio to withdraw and apply monies from the Sharesave Contract equal to the Total Acquisition Price,
payable in respect of the Shares over which the Option is to be exercised. 

  

	10.	ISSUE OR TRANSFER OF SHARES 

  

	10.1	Allotment of Shares 

  

	  	Shares to be issued pursuant to the exercise of an Option shall be allotted within 28 days following the effective date of exercise of the Option. 

  

	10.2	Transfer of Shares 

  

	  	The Grantor shall procure the transfer of any Shares to be transferred pursuant to the exercise of an Option within 28 days following the effective date of exercise of the Option.

  

	10.3	Rights of Newly Issued Shares 

  

	  	Shares to be issued pursuant to the Plan will rank pari passu in all respects with the Shares then in issue, except that they will not rank for any rights attaching to Shares
by reference to a record date preceding the date of exercise. 

  

	10.4	Rights of Transferred Shares 

  

	  	Shares to be transferred pursuant to the Plan will be transferred free of all liens, charges and encumbrances and together with all rights attaching thereto, except they will not
rank for any rights attaching to Shares by reference to a record date preceding the date of exercise. 

  

	10.5	Admission of Shares to Listing 

  

	  	If and so long as the Shares are admitted to listing by the UK Listing Authority and admitted to trading on the London Stock Exchange, Cambridge Silicon Radio shall apply to the UK
Listing Authority for admission to listing and to the London Stock Exchange for admission to trading of any Shares issued pursuant to the Plan as soon as practicable after the allotment thereof. 

	11.	ADJUSTMENTS 

  

	11.1	Variation of Share Capital 

  

	  	The number of Shares over which an Option is granted and the Exercise Price thereof shall be adjusted in such manner as the Grantor shall determine following any capitalisation
issue, rights issue, subdivision, consolidation or reduction of share capital of Cambridge Silicon Radio or any other variation of share capital to the intent that (without involving an Exercise Price calculated to more than two places of decimals)
the Total Acquisition Price payable in respect of an Option shall remain unchanged, provided that no adjustment made pursuant to this Rule 11.1, shall be made without the prior approval of the Inland Revenue (so long as the Plan is approved by the
Inland Revenue). 

  

	11.2	Notification to Option Holders 

  

	  	The Board may take such steps as it may consider necessary to notify Option Holders of any adjustment made under this Rule 11 and to call in, cancel, endorse, issue or reissue any
option certificate subsequent upon such adjustment. 

  

	12.	ADMINISTRATION 

  

	12.1	Notices and Communications 

  

	  	Any notice or other communication under, or in connection with, the Plan may be given by personal delivery or by sending the same by electronic means or by post, in the case of a
company to its registered office, and in the case of an individual to his last known address, or, where he is a director or employee of Cambridge Silicon Radio or a Group Member, either to his last known address or to the address of the place of
business at which he performs the whole or substantially the whole of the duties of his office or employment. Where a notice or other communication is given by first-class post, it shall be deemed to have been received by 10am on the second Business
Day after it was put into the post properly addressed and stamped and if by electronic means, when the sender receives electronic confirmation of delivery or if not available 24 hours after sending the notice. If any notice or other communication
would otherwise have become effective on a non-Business Day or after 5pm on a Business Day, it shall instead become effective at 10am on the next Business Day. 

  

	12.2	Replacement of Option Certificate 

  

	  	If any option certificate shall be worn out, defaced or lost, it may be replaced on such evidence being provided as the Grantor may require. 

  

	12.3	Availability of Shares 

  

	  	Cambridge Silicon Radio shall at all times keep available for allotment unissued Shares at least sufficient to satisfy all Options under which Shares may be subscribed or procure
that sufficient Shares are available for transfer to satisfy all Options under which Shares may be purchased. 

  

	12.4	Decision of Grantor 

  

	  	The decision of the Grantor in any dispute relating to an Option or the due exercise thereof or any other matter in respect of the Plan shall be final and conclusive.

  

	12.5	Costs of Establishment and Administration 

  

	  	The costs of introducing and administering the Plan shall be borne by Cambridge Silicon Radio. 

	13.	ALTERATIONS 

  

	13.1	Power of Alteration 

  

	  	Subject to Rule 13.2, the Grantor may at any time alter or add to all or any of the provisions of the Plan in any respect, provided that if an alteration or addition is made at a
time when the Plan is approved by the Inland Revenue under Schedule 3 it shall not have effect until it has been approved by the Inland Revenue, other than where the relevant alteration or addition is to establish a Modified Plan.

  

	13.2	Alterations to the advantage of Option Holders 

  

	  	Subject to Rule 13.3, no alteration or addition to the advantage of present or future Option Holders or employees shall be made under Rule 13.1 to such of the provisions of the Plan
as relate to any of the following: 

  

	 	(a)	the persons to whom Options may be granted; 

  

	 	(b)	limitations on the grant of Options; 

  

	 	(c)	the determination of the price at which Shares may be acquired by the exercise of Options; 

  

	 	(d)	the adjustment of Options; 

  

	 	(e)	the restrictions on the exercise of Options; 

  

	 	(f)	the rights to be attached upon their issue to Shares issued upon the exercise of Options; 

  

	 	(g)	the rights of Option Holders on the winding-up of Cambridge Silicon Radio; 

  

	 	(h)	the transferability of Options; and 

  

	 	(i)	the terms of Rule 13, 

  

	  	without the prior approval by ordinary resolution of the members of Cambridge Silicon Radio in general meeting. 

  

	13.3	Alterations without consent of Shareholders 

  

	  	Rule 13.2 shall not apply to any alteration or addition: 

  

	 	(a)	which is necessary or desirable in order to obtain or maintain Inland Revenue approval of the Plan under ITEPA or any other enactment, or 

  

	 	(b)	to comply with or take account of the provisions of any proposed or existing legislation or law; 

  

	 	(c)	to take advantage of any changes to the legislation or law 

  

	 	(d)	to take account of any of the events mentioned in Rule 8; 

  

	 	(e)	to obtain or maintain favourable taxation treatment of Cambridge Silicon Radio, any Group Member or any Option Holder; 

  

	  	and which does not affect the basic principles of the Plan, the definition of “Exercise Price”, the limits in Rule 5, or the limits on individual participation.

  

	13.4	Consent of Option Holders 

  

	  	No alteration or addition shall be made under Rule 13.1 which would abrogate or adversely affect the subsisting rights of an Option Holder unless it is made:

  

	 	(a)	with the consent in writing of such number of Option Holders as hold Options under the Plan to acquire 75 per cent of the Shares which would be issued or transferred if all
Options granted and subsisting under the Plan were exercised; or 

  

	 	(b)	by a resolution at a meeting of Option Holders passed by not less that 75 per cent of the Option Holders who attend and vote either in person or by proxy

	  	and for the purpose of this Rule 13.4 the Option Holders shall be treated as the holders of a separate class of share capital and the provisions of the Articles of Association of
Cambridge Silicon Radio relating to class meetings shall apply mutatis mutandis. 

  

	13.5	Notice to Option Holders 

  

	  	As soon as reasonably practicable after making any alteration or addition under Rule 13.1, the Grantor shall give written notice thereof to any Option Holder materially affected
thereby. 

  

	14.	GENERAL 

  

	14.1	Termination of Plan 

  

	  	The Plan shall terminate upon the tenth anniversary of its adoption by Cambridge Silicon Radio in general meeting or at any earlier time by the passing of a resolution by the
Remuneration Committee or an ordinary resolution of Cambridge Silicon Radio in general meeting. Termination of the Plan shall be without prejudice to the subsisting rights of Option Holders. 

  

	14.2	Financial Assistance 

  

	  	Cambridge Silicon Radio and any Subsidiary of Cambridge Silicon Radio may provide money to the trustees of any trust or any other person to enable them or him to acquire Shares to
be held for the purposes of the Plan, or enter into any guarantee or indemnity for those purposes. 

  

	14.3	Loss of Office or Employment 

  

	  	The rights and obligations of any individual under the terms of his office or employment with Cambridge Silicon Radio or a Group Member shall not be affected by his participation in
the Plan or any right which he may have to participate therein. Each Option Holder shall waive all and any rights to compensation or damages in consequence of the termination of his office or employment with any such company for any reason
whatsoever, howsoever that termination occurs, whether lawful or unlawful, insofar as those rights arise or may arise from his ceasing to have rights under the Plan as a result of such termination, or from the loss or diminution in value of such
rights or entitlements. 

  

	14.4	Legal Entitlement 

  

	  	Nothing in the Plan or in any instrument executed pursuant to it will confer on any person any right to continue in employment, nor will it affect the right of any Group Member to
terminate the employment of any person without liability at any time with or without cause, nor will it impose upon the Board or any other person any duty or liability whatsoever (whether in contract, tort or otherwise) in connection with:

  

	 	(a)	the lapsing of any Option pursuant to the Plan; 

  

	 	(b)	the failure or refusal to exercise any discretion under the Plan; and or 

  

	 	(c)	an Option Holder ceasing to hold office or employment for any reason whatever. 

  

	14.5	Wages 

  

	  	Options shall not (except as required by taxation law) form part of the emoluments of individuals or count as wages or remuneration for pension or other purposes.

  

	14.6	Governing Law 

  

	  	These Rules shall be governed by and construed in accordance with English law. 

 SCHEDULE 
  

RULES OF THE CSR PLC SAYE SCHEME FOR UNITED STATES TAXPAYERS 
  
 General 
  

	1	This schedule to The CSR plc SAYE Scheme (“the Plan”) sets out the rules of The CSR plc SAYE Scheme for United States taxpayers (“the US Plan”) which constitutes
a Modified Plan (as defined in the Plan). 

  

	2	The US Plan is not intended to be approved under the provisions of Schedule 3 and options granted under this US Plan will not qualify under Schedule 3. 

  

	3	Options may only be granted under the US Plan at the time Options are granted under the Plan and subject to the same terms as those Options, other than where such terms are
inconsistent with the US Plan. Capitalised terms used but not defined in the US Plan have the meaning attributed to them in the Plan. 

  
 Rules of US Plan 
  

	4	The rules of the Plan, in their present form and as from time to time amended, shall, with the following modifications, form the rules of the US Plan: 

  

	 	4.1	references in the Plan to “the Plan” shall be read as references to “the US Plan”; 

  

	 	4.2	rule 6.2 shall be renamed “Latest date for exercise” and shall read “Save as provided in rule 6.6, an Option shall not be exercised later than the earlier of:

  

	 	(i)	6 months after the Bonus Date under the Sharesave Contract entered into in connection with the Option; and 

  

	 	(ii)	15 March of the year following the end of the calendar year in which the Bonus Date occurs (or the date on which the Option first becomes exercisable, if earlier)

  

	 	  	and if not so exercised, the Option shall lapse.”; 

  

	 	4.3	the words “Subject to rule 7.1(j)” shall be inserted at the beginning of rules 6.6, 6.8 and 6.12; 

  

	 	4.4	the words “and rule 7.1(j)” shall be inserted after “subject to rule 9.1” in rule 6.7; 

  

	 	4.5	the words “and rule 7.1(j)” shall be inserted after “8.6” at the beginning of rules 8.1, 8.3 and 8.4(b); 

  

	 	4.6	the words “and, if not so exercised, the Option shall lapse.” shall be inserted at the end of rules 6.6, 6.7, 6.8, 6.12, 8.1, 8.3 and 8.5.”; 

 

	 	4.7	the words “Subject to rule 7.1(j)” shall be inserted at the beginning of the second sentence in rule 8.5; 

  

	 	4.8	the words “To the extent not so exercised, the Option shall lapse on 15 March of the year following the end of the calendar year in which the Option becomes
exercisable.” shall be added to the end of rule 6.11; 

  

	 	4.9	rule 7.1 (j) shall be inserted and shall read “notwithstanding any other provisions of this rule 7.1, on 15 March of the year following the end of the calendar year
in which the Option first becomes exercisable.”; 

  

	 	4.10	the definition of Eligible Employee shall be amended to read “any individual who: 

  

	 	(a)	is a director or bona fide employee of a Participating Company on terms which, if he is a director, require him to devote at least 25 hours a week to his duties (excluding
meal breaks) and is nominated by the Remuneration Committee either individually or as a member of a category of such full time directors or employees; and 

	 	(b)	has not at the Grant Date, and has not had within the preceding twelve months, a Material Interest in a Close Company which is: 

  

	 	(i)	Cambridge Silicon Radio; or 

  

	 	(ii)	a company which has Control of Cambridge Silicon Radio or is a Member of a Consortium which owns Cambridge Silicon Radio;” 

  

	 	4.11	references to any requirement for Inland Revenue approval shall be disregarded for the purposes of the US Plan. 

  

	5	Limits 

  

	  	For the avoidance of doubt, Shares placed under Option under the US Plan shall be taken into account for the purpose of rule 5.1 of the Plan (and vice versa).XAP Technology Licence and XAP2 Development Agreement

 Exhibit 10.5 
  
 DATED
                     1999 
  
  
  
 CAMBRIDGE CONSULTANTS LIMITED (1) 
  
 and 
  
 CAMBRIDGE SILICON RADIO LIMITED (2) 

  
  
  
 XAP TECHNOLOGY LICENCE 
  
 & 
  
 XAP2 DEVELOPMENT AGREEMENT 
  
  

 THIS AGREEMENT is made on
                                1999 (the “Effective Date”) 
  
 BETWEEN: 
  

	(1)	CAMBRIDGE CONSULTANTS LIMITED whose registered office is at unit 29 Cambridge Science Park, Milton Road, Cambridge CB4 0DW (“CCL”); and 

  

	(2)	CAMBRIDGE SILICON RADIO LIMITED whose registered office is at unit 300, Cambridge Science Park, Milton Road, Cambridge CB4 0DW (“CSR”). 

  
 RECITALS: 
  
 CCL has agreed to license its XAP Technology (as defined below) to CSR on the terms of this Agreement and to carry out on
the terms in the Agreement development work of its XAP Technology on the terms set out below. 
  
 OPERATIVE TERMS 
  

	1.	Definitions 

  

	1.1	In this Agreement, the following expressions shall have the following meanings: 

  

			
	“Acceptance”	  	is defined in clause 8.1;
		
	“Acceptance Tests”	  	are set out in Schedule 4;
		
	“Consideration”	  	means, subject to Clause 9.2 the issue of the Consideration Shares in accordance with Clause 7.1;
		
	“Consideration Shares”	  	means, subject to clause 9.2, 29875 ‘B’ Ordinary Shares in CSR bearing the rights set out in the memorandum and articles of association of CSR;
		
	“CSR Products”	  	means any products or systems (including designs for products) as CSR may from time to time design, manufacture or supply which are integrated circuits containing RF or baseband elements of a
radio communications system;
		
	“Deliverables”	  	means those items listed in the column under the heading “Deliverables” in Schedule 2;
		
	“Documentation”	  	means information about the specification of the XAP Processor, and user guides to the Software and its operation and any other material provided by CCL intended by CCL to be passed on to
users of the Software;
		
	“Intellectual Property Rights”	  	means all patents, rights in design, copyright, trademarks and other intellectual property rights whether or not registered or capable of registration which may subsist anywhere in the world;

		
	“Maintenance Services”	  	means the usual level of support services that CCL offers to its other licensors of XAP Technology;
		
	“Software”	  	means software in the Toolset in executable object code form as the same exists on the Effective Date together with any subsequent modifications of or additions to the Software and new
versions of the Software;

  

 1 

			
	“Source Material”	  	means the source code, linkage data, technical data, information and documentation relating to the Software which is necessary for a reasonably experienced programmer with relevant reasonable
expertise to compile, build, maintain, modify and understand the Software and provide support for the Software (but the source code for the “C” compiler is excluded);
		
	“Support Material”	  	means those materials that CCL considers are reasonably necessary to enable CSR to sub-license the Software to third parties in accordance with clause 3.1(e);
		
	“Toolset”	  	means such software and hardware tools from time to time as are reasonably necessary to enable reasonably experienced third parties with relevant expertise to develop designs based on the XAP
Processor (which shall include a XAP2 Processor when required by this Agreement);
		
	“Trade Marks”	  	are set out in Schedule 3, or such other trade marks as CCL may notify in writing to CSR from time to time in connection with the XAP Technology;
		
	“XAP Processor”	  	means the XAP microprocessor core and its serial interface existing at the Effective Date, in the form of a non-encrypted, structural and hierarchical netlist describing the circuit in a
hardware description language;
		
	“XAP2 Processor”	  	means a XAP microprocessor core and its serial interface, being an improved version of the XAP Processor and having the improvements and changes to the XAP Processor listed in Schedule 1,
existing in the form of a non-encrypted, structural and hierarchical netlist describing the circuit in a hardware description language; and
		
	“XAP2 Specification”	  	means the specification for the XAP2 Processor;
		
	“XAP Technology”	  	means the XAP Processor, the Toolset, the Software, the Documentation, the Source Material and the Support Material relating thereto, including any developments, modifications, alterations or
adaptations. The XAP2 Processor is not part of the XAP Technology until Acceptance of the Final Deliverable but does include work in progress delivered by CCL pursuant to clause 9.2.2.

  

	2.	Delivery of XAP Technology 

  

	2.1	On, or as soon as reasonably practicable after, the Effective Date, CCL shall, at its own cost, deliver to CSR the XAP Technology as it exists at the Effective Date.

  

	2.2	For 2 years from the completion date, CCL shall keep CSR fully and timely informed of any changes, additions or modifications (“Revisions”) to the Toolset, the Software,
the Documentation, the Source Material and the Support Material and shall deliver to CSR a reproducible copy of Revisions within 7 days of official release by CCL of Revisions to CCL’s own staff. 

  

	3.	Licence 

  

	3.1	From the Effective Date but subject to the qualifications in clause 3.3, CCL grants to CSR a perpetual, non-exclusive, world-wide licence to use XAP Technology in, or for use as
part of, CSR Products, as follows: 

  

	 	(a)	the right to use XAP Technology for developing CSR Products; 

  

 2 

	 	(b)	the right to develop, modify, alter and make adaptions of the XAP Technology; 

  

	 	(c)	the right to embed XAP Technology in CSR Products; 

  

	 	(d)	the right to supply CSR Products to third parties incorporating or based on XAP Technology and to grant to third parties sublicenses of its rights as are necessary to enable use of
the relevant product; 

  

	 	(e)	the right to supply and subject to clause 5.2, to sub-license third parties to use the Toolset; 

  

	 	(f)	the right to copy the Documentation for use by licensed users of XAP Technology, and to supply the same to such users; 

  

	 	(g)	the right to use the Trade Marks in relation to the above permitted uses; and 

  

	 	(h)	the right to make such other copies (including back-up copies) and otherwise reproduce the XAP Technology for the purpose of exercising the rights set out above or otherwise in
accordance with this Agreement. 

  

	3.2	For the avoidance of doubt nothing in this Agreement shall permit CSR to license or sell XAP Technology when it is not embedded in CSR Products. Also for the avoidance of doubt, CSR
shall not be entitled (save with CCL’s written agreement, such agreement not to be unreasonably withheld) to supply Source Code to third parties other than individual subcontractors contracted directly with CSR and working on CSR’s
premises. 

  

	3.3	The right to develop, modify, alter and adapt the XAP Technology for the purposes of creating functionally similar products to that described in the XAP2 Specification does not
arise until 1 June 1999. 

  

	4.	Payments to CCL by CSR 

  

	4.1	The licence granted by CCL to CSR in clause 3 shall be on a royalty free basis and CSR shall not be obliged to make any payment to CCL for such licence. 

  

	4.2	In the event that CSR supplies copies of the Toolset pursuant to clause 3.1(e), it shall remit to CCL 85% of the price of the Toolset (such price being listed in CCL’s current
list price for the same) or such other price as may be agreed in writing between CCL and CSR; or in the absence of any such list price or agreement, such price as is reasonable. 

  

	4.3	For the avoidance of doubt, nothing shall prevent CSR establishing and altering the prices of the Toolset that CSR charges to third parties (pursuant to clause 3.1(e)).

  

	4.4	All fees payable under this agreement are exclusive of any VAT which may be payable by reference to such payments. 

  

	4.5	Subject to clause 9.1, within 7 days of delivery of the last Deliverable, CSR shall issue to CCL the Consideration Shares. 

  

	5.	Maintenance Services 

  

	5.1	CCL shall for a period of not less than 2 years from the Completion Date provide the Maintenance Services to CSR at a cost to CSR sufficient to cover the reasonable administration
expenses of so doing. 

  

	5.2	In the event that, pursuant to clause 3.1(e), CSR sub-licenses the Toolset to a third party then CCL shall separately contract with that third party to provide support for the
Toolset on its usual terms and conditions for such support. 

  

	6.	CCL Warranties 

  

	6.1	CCL represents and warrants 

  

	 	(a)	that it has full power and authority to enter into and to perform this Agreement; 

  

 3 

	 	(b)	that it has not by the date of this Agreement granted any rights the exercise of which would derogate from or be inconsistent with the rights granted to CSR under this Agreement;

  

	 	(c)	it will use all reasonable care and skill in carrying out its obligations, including the development under this Agreement; 

  

	 	(d)	it has the complete source material for the software as it exists at the Effective Date; 

  

	 	(e)	it is the proprietor of the rights in XAP Technology and the designs for it with the exception of the C Compiler which is owned by Codemist Limited; and 

  

	 	(f)	that it will use reasonable endeavours to ensure that the First Deliverable is in substantial accord with the relevant part of the XAP2 Specification. 

  

	7.	Development and Deliverables 

  

	7.1	As soon as reasonably practicable after the Effective Date, CCL shall:- 

  

	 	(a)	together with CSR, commence the preparation of the XAP2 Specification as follows: subject to clause 7.3, CCL and CSR shall consult each other and work together to agree a detailed
specification (to become the XAP2 Specification) by the relevant milestone date set out in Schedule 2; and 

  

	 	(b)	When CCL agrees the specification and work programme with CSR then CCL will allocate a specific budget and resource consistent with the work plan and the work will be carried out at
the same level of priority as standard commercial work. 

  

	7.2	CCL shall take into account the reasonable requirements of CSR in relation to the XAP2 Specification and shall not unreasonably withhold agreement to any reasonable proposal in
relation to it. 

  

	7.3	CSR shall not unreasonably withhold its written agreement to the final detailed specification proposed by CCL, which upon such agreement shall become the XAP2 Specification.

  

	7.4	CCL shall develop and deliver to CSR on or before the relevant milestone dates specified in Schedule 2, the further items set out in the “Deliverables” column in Schedule
2. 

  

	 7.5
	 If CCL and CSR are unable, within 2 weeks of 15th April 1999, to agree on a specification and work programme, then either may give notice to the other to terminate CCL’s development obligations. Thereupon, CCL has no obligation to develop XAP2 and no
entitlement to Consideration Share and there shall be no further liability on either party in respect thereof. 

  

	8.	Acceptance of the First Deliverable 

  

	8.1	On delivery of the First Deliverable to CSR by CCL, CSR shall promptly test such Deliverable by means of the Acceptance Tests. Fourteen working days after the delivery by CCL to CSR
of any Deliverable, such Deliverable shall be deemed accepted (“Acceptance”) unless CSR notifies CCL in writing that such Deliverable has not passed the Acceptance Tests and CSR notifies CCL in writing of the reason for such failure (a
“Fault”). If CCL reasonably agrees that a Fault exists, then CCL shall within fourteen days carry out such amendments to the Deliverable as may be necessary to remedy the same and shall submit the Deliverable for two (2) retests under
this clause 8.1. 

  

	8.2	If the First Deliverable fails the Acceptance Tests three times in accordance with clause 8.1, then CSR may give notice to CCL that this Agreement is terminated. On such
notice, clause 9.2.1 and 9.2.2 shall, mutatis mutandis, have effect. 

  

	9.	Consequence of failure to meet Milestones or Acceptance Tests 

  

	9.1	If the First Deliverable or the Final Deliverable is not delivered by the relevant milestone date (see Schedule 2) then CSR may give notice to CCL requiring it to make the relevant
delivery by a date not less than 28 days after the date of the notice (the “Final Notice Date”). 

  

 4 

	9.2	If the relevant Deliverable is not delivered by the Final Notice Date then CSR may give notice to CCL that this Agreement is terminated. On such notice:- 

 

	 	9.2.1	No Consideration Shares shall be due (other than pursuant to 9.2.2. below) and, for the avoidance of doubt, the XAP2 Processor shall not form part of the XAP Technology; and

  

	 	9.2.2	CSR may at its option (to be exercised by notice to CCL) require CCL to make available forthwith to CSR all embodiments of the work in progress which CCL has created in the course
of work towards creating the relevant Deliverable, and the parties shall negotiate a fair price expressed as a percentage of the Consideration Shares for such work in progress, having regard to any delay in doing the work and the amount completed in
relation to the relevant part of the XAP2 Specification. In default of agreement as to the price within 28 days the matter shall be dealt with under the procedure set out in clauses 21.7(d) and (e), save that the reference to the President of
the British Computer Society shall be replaced with a reference to the President for the time being of the Institute of Chartered Accountants in England and Wales. 

  

	9.3	This clause 9 constitutes CSR’s sole remedy for late delivery of either Deliverable. 

  

	9.4	The number of the Consideration Shares shall be reduced by 1/10th of the number set out in Clause 1.1 in respect of each complete week (up to a maximum of six) by which delivery of
the Final Deliverable is delayed beyond the last Milestone set out in schedule 2. 

  

	10.	Project Management 

  

	10.1	CCL and CSR will each nominate a project manager responsible for monitoring and managing progress on the development under this Agreement. Each project manager will arrange and
attend project control meetings which will normally be held at least once a month at the offices of CSR. Minutes shall be taken by CCL. 

  

	10.2	At each such meeting, CCL shall report on the progress it is making and CSR and CCL shall raise any difficulties that either may have encountered in performing their obligations
under this Agreement. In particular CCL shall ensure that CSR is made aware of any problem likely to give rise to a delay in completing or delivering a Deliverable. 

  

	11.	Records 

  

	11.1	CSR shall keep proper records and books of accounts showing the amount payable to CCL under this agreement and such records and books shall be open at all reasonable times to
inspection by an independent accountant on behalf of and at the cost of CCL. 

  

	12.	Duration and Termination 

  

	12.1	This Agreement shall come into force on the Effective Date and subject to the other conditions of this Agreement shall remain in force for 20 years. Twenty years after the Effective
Date, the licence to CSR in clause 3 shall become free of restriction. 

  

	13.	Consequences of Termination 

  

	13.1	Termination of this Agreement for any reason shall, subject to the other provisions of this clause 13, be without prejudice to the rights and liabilities of either party which may
have accrued on or at any time up to the date of termination. 

  

	13.2	Upon termination of this Agreement by CCL for material breach by CSR, the licence in clause 3 shall cease. In any other cases the licence in clause 3 shall continue until the later
to expire at the rights licenced hereafter. 

  

	13.3	Following termination, CSR shall have the right to continue to sell and license all CSR Products made prior to the date of termination incorporating XAP Technology.

  

 5 

	14.	Warranty by CCL and Limitation of Liability 

  

	14.1	CCL warrants that the Software shall perform on delivery in all material respects to the Specification relevant at the time in question and will continue to perform in accordance
with the Specification at the date of delivery. It shall be developed to the CCL software development procedures as approved under ISO 9001 at the Effective Date. CCL shall remedy promptly and at its own expense any material defects in the Software
which are reported in writing to CCL within six months of the delivery. CSR shall afford CCL a reasonable opportunity to correct any defect in the Software at CCL’s own expense before CCL is regarded as being in breach of its obligations under
this clause. 

  

	14.2	A separate warranty on the same terms as Clause 14.1 shall apply to any modifications and additions to the Software made available to CSR by CCL. 

  

	14.3	Without prejudice to clauses 14.4, 14.5 and 17.1, and notwithstanding the unenforceability or invalidity of any other provision in this Agreement, each party’s maximum
aggregate liability arising out of or in connection with this Agreement, or any collateral contract, whether in contract, tort (including, but not limited to, negligence) or otherwise, shall in no circumstances exceed £400,000 in aggregate.

  

	14.4	Each party shall be liable for physical damage to the other party’s property resulting from its negligence up to a maximum of £1,000,000. Neither corruption of magnetic
media nor loss of or damage to data shall constitute physical damage for the purposes of this clause 14.4. 

  

	14.5	Nothing in this Agreement shall exclude or limit either party’s liability for fraud or for death or personal injury caused by its negligence. 

  

	14.6	Subject to clause 14.3, neither party shall be liable under or in connection with this Agreement or any collateral contract for any loss of income, profit or contracts or any
indirect or consequential loss or damage of any kind howsoever arising and whether in tort (including negligence), contract or otherwise. 

  

	14.7	Subject to clause 14.5, CCL shall have no liability to the extent that the same arises from or as a result of CSR’s failure to establish back-ups, accuracy checks and/or
security precautions to guard against possible malfunctions, loss of data or unauthorised access to or use of XAP Technology or the Deliverables, in accordance, in each case, with good information technology practice. 

  

	15.	Confidentiality 

  

	15.1	Each party shall treat as confidential the XAP Technology and all other information relating to it supplied by the other which is designated as confidential by such other party or
which is by its nature clearly confidential but this shall not extend to any information which is generally known or becomes so at a future date other than as a result of a breach of this clause or which is developed independently by the recipient
party without reference to the subject information. 

  

	16.	Intellectual Property 

  

	16.1	All Intellectual Property Rights in the XAP Technology, the XAP2 Specification, the Deliverables developed under this Agreement shall remain vested in CCL, provided that rights in
any development of the XAP Technology which but for this clause 16.1 would vest in CSR shall vest in CCL on the delivery of the Final Deliverable. 

  

	16.2	CSR shall execute any and all documents and without limitation shall do all such things which CCL may reasonably require to vest in CCL the Intellectual Property Rights in the items
listed in clause 16.1 or which may be required under the laws of any country in which any of such Intellectual Property Rights may subsist. 

  

	16.3	For the avoidance of doubt, CCL acknowledges that it will not obtain any rights in respect of the CSR Products or designs produced by CSR in which XAP Technology is embedded or
which are used in conjunction with XAP Technology. 

  

 6 

	17.	Indemnity Against Intellectual Property Infringement 

  

	17.1	CCL will indemnify and hold CSR and its manufacturers and customers (“Indemnitees”), harmless against any liability, cost, damage or expense which they may incur to the
extent that it arises out of any claims by any other person alleging infringement of any patent, design, trade mark, copyright or trade secret resulting from the use, copying or provision of XAP Technology provided that the Indemnitees:

  

	 	(a)	promptly notifies CCL in writing of any such claim or suit; 

  

	 	(b)	makes no admissions or settlements without CCL’s prior written consent; 

  

	 	(c)	at CCL’s request and expense, allows CCL complete control over any negotiations or litigation and/or the defence or settlement of such claim or suit; and

  

	 	(d)	gives CCL all information and assistance as CCL may reasonably require. 

  

	17.2	CCL shall have no obligation under clause 17.1 where any alleged infringement arises from: 

  

	 	(a)	continued use (after notice) of a non current release of the XAP Technology, the XAP2 Specification or a Deliverable; 

  

	 	(b)	modifications made to the XAP Technology, the XAP2 Specification or a Deliverable by a party other than CCL; 

  

	 	(c)	use of the XAP Technology, the XAP2 Specification or a Deliverable in any manner not contemplated by this Agreement; or 

  

	 	(d)	any breach of any of the terms of this Agreement or any negligent, wilful or fraudulent act or omission of or by CSR, its officers, employees, agents or contractors.

  

	17.3	Without limitation to clause 17.2, in the event that the use or possession of the XAP Technology, the XAP2 Specification or a Deliverable supplied by CCL to CSR (as contemplated by
this Agreement) infringes or, in CCL’s opinion, is likely to be held to infringe any Intellectual Property Right belonging to a third party, CCL may at its option and expense: 

  

	 	(a)	procure for CSR the right to continue using the XAP Technology, the XAP2 Specification or a Deliverable (as applicable) free from any liability for such infringement;

  

	 	(b)	modify or replace using the XAP Technology, the XAP2 Specification or a Deliverable (as applicable) so as to avoid the infringement; or 

  

	 	(c)	(if no other course is reasonably practicable) terminate this Agreement immediately on written notice. 

  

	17.4	This clause 17 states the entire obligation and liability of CCL and the sole remedy of CSR in respect of any infringement or alleged infringement of any Intellectual Property
Rights arising from its acquisition, possession or use of the XAP Technology, the XAP2 Specification or a Deliverable (as applicable). All other obligations of CCL in relation to infringement or alleged infringement of the Intellectual Property
Rights of any person which but for this clause 17.4 would have effect are hereby excluded, save where clause 17.3(c) is invoked, in which case CSR will be entitled to its other remedies herein, but CCL’s liability in respect thereof shall be
subject to clause 15 of the Sale and Purchase Agreement of even date herewith. 

  

	18.	Force Majeure 

  

	18.1	Neither party shall be liable for any delay or failure to perform its obligations under this Agreement to the extent that and for so long as such delay or failure results from
circumstances beyond its reasonable control (an “event of force majeure”) provided that the first party notifies the other within three working days of becoming aware of such event. If any event of force majeure continues for a period
exceeding 1 month, either party shall have a right to terminate this Agreement immediately on written notice to the other. 

  

 7 

	19.	Change Control 

  

	19.1	Any change proposed or made at any time: 

  

	 	(a)	by either party to any accepted Deliverable; 

  

	 	(b)	by either party to the XAP2 Specification; or 

  

	 	(c)	by either party to any delivery dates in this agreement; 

  

	  	shall be subject to the change control procedure in Schedule 5. 

  

	19.2	Subject to the change control procedure in Schedule 5, without prejudice to its obligations to provide the Maintenance Services, CCL shall use its reasonable endeavours to undertake
any modification or enhancement to the Software reasonably requested by CSR in order to maintain the marketability of the Software including complying with local market requirements in any particular country. 

  

	20.	Co-operation 

  

	20.1	Each party shall reasonably cooperate with the other in performance of this Agreement and shall make such personnel as the other reasonably requests reasonably available and
accessible to the other. 

  

	21.	General 

  

	21.1	Each party shall have the right to assign its rights and benefits under this Agreement and to exercise its rights by subcontract. 

  

	21.2	No relaxation of variance or delay by either party in enforcing any of the terms and conditions of this Agreement shall prejudice affect or restrict the rights and powers of that
said party. Any waiver to be effective must be in writing. 

  

	21.3	This Agreement and its schedules constitute the entire agreement between the parties relating to XAP Technology. This Agreement supersedes and excludes all prior Agreements,
arrangements, representations (except fraudulent representations) and understandings between the parties save relating to the same subject matter. 

  

	21.4	All notices which are required to be given hereunder shall be in writing and shall be sent to the address of the recipient set out in this Agreement or such other address in England
as the recipient may designate by notice given in accordance with the provisions of this clause. Any such notice may be delivered personally or by first class prepaid letter, telex or confirmed fax transmission or confirmed email and shall be
deemed, unless otherwise shown, to have been served if by hand when delivered, if by post 72 hours after posting and if by telex or fax or email transmission when dispatched. Confirmed fax and confirmed email transmissions must be confirmed by
written notice delivered personally or by first class prepaid letter, delivered or dispatched, respectively, not later than the day following such transmission. 

  

	21.5	If any of the provisions of this Agreement should be invalid illegal or unenforceable in any respect the validity legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby unless the business purpose of this Agreement is substantially frustrated thereby. 

  

	21.6	Each party performing this Agreement is acting as an independent contractor and not as an employee or agent of the other and each party shall not assume any obligation of any kind
whether express or implied on behalf of the other party or bind or commit the other party in any way. 

  

	21.7	Disputes 

  

	 	(a)	This Agreement shall be governed by and construed in accordance with the laws of England. Subject to clauses 9 and 21.7(b)-(e), the parties hereby submit to the non-exclusive
jurisdiction of the Courts of England. 

  

	 	(b)	All disputes between the parties arising out of or in connection with this Agreement shall be referred to the project managers at each party for resolution. If, having been referred
under this clause 21.7(b), the dispute is not resolved within three working days, clause 21.7(c) shall apply. 

  

 8 

	 	(c)	Subject to clauses 9 and 21.7(b), such dispute shall then be referred to Claire Ruskin or the Business Office Manager at CCL and James Collier at CSR for resolution. If, having been
referred under this clause 21.7(c), the dispute is not resolved within seven working days, clause 21.7(d) shall apply. 

  

	 	(d)	Subject to clause 21.7(c), if the dispute is substantially of a technical nature, such dispute may be referred, with the written agreement of the parties, to an expert, who shall be
deemed to act as expert and not as arbitrator. The expert shall be selected by mutual agreement or, failing such agreement, within 14 days of a request by one party to the other, shall be chosen by the President for the time being of the British
Computer Society (or his nominee). Decisions of the expert shall be final and binding and, except in the case of manifest error, not subject to appeal. The fees of the expert shall be borne by the parties in such proportion as may be determined by
the expert. 

  

	 	(e)	If the either of the parties does not agree with any dispute being referred for expert determination in accordance with clause 21.7(d), then the dispute shall be determined by the
English courts under clause 21.7(a). 

  
 In
Witness whereof the parties hereto have executed this agreement by their duly authorised representatives the day and year first above written. 
  

					
			
	Signed by Cambridge Consultants)	 	)	  	  

			
	Limited for and on behalf of:	 	)	  	  

			
	in the presence of:	 	)	  	  

			
		 		  	  

			
		 		  	  

			
		 		  	  

			
		 		  	  

			
	Signed by	 	)	  	  

			
	for and on behalf of: Cambridge Silicon 	 	)	  	  

			
	Radio Limited	 	)	  	  

			
	in the presence of:	 		  	  

  

 9 

 SCHEDULE 1 
  

Changes required to the XAP Processor to become the XAP2 Processor 
  

	 	•	 	 Synchronous design that is suitable for scan path (all flip-flops, no latches). 

  

	 	•	 	 Design defined in Verilog. 

  

	 	•	 	 The processor must be capable of 8 Mips on 0.35 micron, using a clock of no more than twice the instruction rate (i.e. 16 MHz for 8 Mips). This clock must also be
sufficient for data and program memory accesses using either synchronous or asynchronous memories, assuming the memories are sufficiently fast. It must also be possible to emulate the processor at this clock speed using appropriate FPGA devices.

  

	 	•	 	 Single instruction cycle execution of all shifts. Multiplies and divides can use multiple instruction cycles. Multiplies should be optimised such that they require
as few instruction cycles as possible, while still allowing the processor to meet the speed requirements defined above. 

  

	 	•	 	 16 bit wide instructions, in order to allow easier interfacing with external program memories, achieved by removing two bits from the data field within each
instruction and adding a new ‘prefix’ instruction that defines the top 8 msbs of the data field for instructions requiring data outside the range -128 to +127. 

  

	 	•	 	 Hardware and software support within the core processor for interrupts. This core support need only be for a single level of interrupt, provided that there is
sufficient flexibility to allow an interrupt controller peripheral to provide multiple interrupt levels for applications that require this. This means that the core processor must allow for nested interrupts, which, for example, requires that
interrupts are disabled during the save/restore registers phases of the interrupt service routines. The processor must provide an efficient method for saving and restoring registers to avoid large latencies in executing interrupts; for example, new
instructions will be necessary to read and write the flags register. 

  

	 	•	 	 Provision for an external memory management unit (MMU) to allow efficient interfacing with external memories (including a multiplexed program/data bus) and slow
peripherals. This must include support for independent wait states on the data and program busses. 

  

	 	•	 	 Provision for a hardware break point that is programmable via the SIF even on the final ASIC and is equivalent to a ‘brk’ instruction at a specified
program address. 

  

	 	•	 	 Full emulator control of the processor using only the MOSI, MISO, SIFCLK and RST signals, including single-step and breakpoints. Note that this requires the
stop/run/step mode of the processor to be modified using the SIF (which can easily be achieved with an external SIF as this can generate the normal STOP and RUN_STEP signals to the processor core based on commands issued over the SIF by the host).
In the case of the final ASIC, the above requirements still apply except for certain operations that are physically impossible such as writing to a ROM. 

  

 10 

 SCHEDULE 2 
  

Milestone Dates 
  
 XAP2 Specification Milestone Dates 
  

			
	 Milstone Date
	  	 XAP2 Specification

	 15th April 1999
	  	delivery of the XAP2 Specification to CSR

  
 Deliverables
Milestone Dates 
  

			
	 Milstone Date for delivery
	  	 Deliverables

	 1st June 1999
	  	validated design of XAP2 Processor in synthesisable form (RTL netlist) (the “First Deliverable”)
		
	 1st July 1999
	  	 preliminary versions of tools for software development using the XAP2 Processor

		
		  	 (a) Assembler

		
		  	 (b) “C” Compiler as allowed by CCL’s contract with Codemist

		
		  	 (c) Software simulator

		
		  	 (d) Emulation software

		
		  	 (e) PC emulator card driver software.

		
		  	at least corresponding to and providing the same features as the same materials for the XAP Processor and being sufficient for reasonably experienced software engineers with relevant and
appropriate expertise of CL and CSR to develop software written in both Assembler and the ‘C’ programming language for use on the XAP2 Processor
		
	 1st December 1999
	  	released versions of tools for software development using XAP2 at least corresponding to and providing the same features as the same materials for the XAP Processor and being sufficient for
reasonably skilled and experienced software engineers of a third party who has not previously worked with XAP Processors to develop software written in both Assembler and the ‘C’ programming language for use on the XAP2 Processor (the
“Final Deliverable”)

  
 The Milestone Dates
set out above shall be extended by a period equal to any delay caused by CSR in agreeing the Specification or otherwise in performing its obligations under this Agreement. 
  

 11 

 SCHEDULE 3 
  

Trade Marks 
  
 ‘XAP’ 
 ‘SIF’ 
  

 12 

 SCHEDULE 4 
  

Acceptance Tests 
  
 The Acceptance Tests shall be agreed between the parties. The Acceptance Tests will be designed to test the performance of the Deliverable against the
relevant part of the Specification. If the parties fail to agree, the matter shall be resolved in accordance with clause 21.7(d). 
  

 13 

 SCHEDULE 5 
  

Change Control Procedure 
  
 Principles 
  

	1.	Neither CCL nor CSR shall unreasonably withhold its agreement to any change. 

  

	2.	Until such time as a change is made in accordance with this Change Control Procedure, CCL shall, unless otherwise agreed in writing, continue to provide the Deliverables as if the
request or recommendation had not been made. 

  

	3.	Any discussions which may take place between CCL and CSR in connection with a request or recommendation before the authorisation of a resultant change shall be without prejudice to
the rights of either party. 

  
 Procedures 
  

	4.	Discussion between the Customer and the Supplier concerning a change shall result in any one of the following: 

  

	 	4.1	no further action being taken; 

  

	 	4.2	a request to change a Deliverable; or 

  

	 	4.3	a recommendation to change a Deliverable. 

  

	5.	Where a written request for an amendment is received from CSR, CCL shall, unless otherwise agreed, submit a Change Control Note (“CCN”) to CSR within 14 days of the date
of the request which embodies substantially the terms of the request (other than as to price). 

  

	6.	A recommendation to amend by CCL shall be submitted as a CCN direct to CSR at the time of such recommendation. 

  

	7.	Each CCN shall contain: 

  

	 	7.1	the title of the change; 

  

	 	7.2	the originator and date of the request or recommendation for the change; 

  

	 	7.3	the reason for the change; 

  

	 	7.4	full details of the change including any specifications; 

  

	 	7.5	the alteration (if any) to the Consideration Shares or any other consideration for the change; 

  

	 	7.6	a timetable for implementation and a new timetable for any relevant timings in this Agreement based on the knock-on impact of the change; 

  

	 	7.7	any proposals for acceptance of the change; 

  

	 	7.8	details of the likely impact, if any, of the change on other aspects of the Deliverables or this Agreement including but not limited to: 

  

	 	(a)	working arrangements; and 

  

	 	(b)	other contractual issues; 

  

	 	7.9	the date of expiry of validity of the CCN (which shall not be less than 3 months); and 

  

	 	7.10	provision for signature by CSR and by CCL. 

  

 14 

	8.	For each CCN submitted, CSR shall, within the period of the validity of the CCN: 

  

	 	8.1	allocate a sequential number to the CCN; 

  

	 	8.2	evaluate the CCN and, as appropriate; 

  

	 	(a)	request further information; 

  

	 	(b)	approve the CCN; or 

  

	 	(c)	notify CCL of the rejection of the CCN; and 

  

	 	8.3	arrange for two copies of any approved CCN to be signed by or on behalf of CSR and CCL. 

  

	9.	A CCN signed by both parties shall constitute an amendment to this Agreement. 

  

 15

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