Document:

Opti Inc. Technology License Agreement

 EXHIBIT 10.1 
  
 OPTi, INC. TECHNOLOGY LICENSE AGREEMENT 
  
 THIS TECHNOLOGY LICENSE AGREEMENT (this
“Agreement”) is made and entered into as of this 30th day of September, 2002 (the “Effective Date”) between OPTi, Inc., a California corporation (“OPTi”) and Opti Technology,
Inc., a California corporation (“Licensee”). 
  
 RECITALS 
  

	A.
	 
	OPTi has developed and has manufactured certain integrated circuits that function as Universal Serial Bus (“USB”) controllers and core
logic devices. 
 

  

	B.
	 
	OPTi desires to license the relevant technology to Licensee for Licensee to manufacture and sell such integrated circuits, as well as sell off OPTi’s
existing inventory of such integrated circuits. 
 

  
 NOW, THEREFORE, Licensee and OPTi hereby agree as follows:

  
 1     DEFINITIONS 
  
 1.1.  “Confidential Information” means confidential and proprietary information of either party which is: (i) designated with the legend “Confidential” or
comparable legend in case of disclosure thereof in written, graphic, machine readable or other tangible form or (ii) designated “Confidential” at the time of disclosure thereof in other form and within thirty (30) days after such
disclosure set forth in writing designated “Confidential” and forwarded to the receiving party. Confidential Information of OPTi further includes without limitation: (x) any unpublished patent applications of OPTi Patent Rights; and (y)
the terms of this Agreement. 
  
 1.2.  “Licensed Devices” means the specific
classes of integrated circuit products defined in Exhibit C hereto. Licensed Devices expressly excludes any product except those integrated circuits defined in Exhibit C. 
  
 1.3.  “OPTi Technology” means the OPTi technology described in Exhibit A hereto. 
  
 1.4.  “OPTi Intellectual Property Rights” means the OPTi Patent Rights and all other intellectual
property rights, including without limitation those intellectual property rights necessary to practice the OPTi Technology, under which and to the extent OPTi has or acquires the right to grant licenses of the scope to be granted by OPTi, including
without limitation, rights of priority, mask work rights, copyrights, moral rights, trade secrets, know-how and any other intellectual property rights recognized in any country or jurisdiction of the world, exclusive of trademarks, trade names,
logos, service marks, and other designations of source. 

  
 1.5.  “OPTi Patent Rights” means the rights in
and to: (i) the patents and patent applications described in Exhibit B hereto; (ii) all continuation, continuation-in-part, divisional, reissue and reexamination applications of any of the foregoing; and (iii) any and all patents, patent
applications and utility models in all countries of the world issued on or before the date of termination of this Agreement (and all foreign counterparts thereof), to the extent they: (1) derive priority in whole or part from any of the foregoing,
(2) claim any aspect of the OPTi Technology as subject matter, or (3) claim any subject matter contained in a patent or patent application described in Exhibit B, in each of the foregoing cases (i), (ii) and (iii), such rights being
either owned by OPTi or licensed to OPTi with the right to grant sublicenses of the scope of the licenses granted to Licensee herein without payment of royalties. 
  
 2    GRANT OF LICENSE RIGHTS 
  
 2.1.  OPTi Technology.    Subject to all of the terms and conditions of the Agreement, OPTi hereby grants Licensee, under all OPTi Intellectual Property Rights in the OPTi Technology, a
world-wide, nontransferable, royalty-bearing license (with no right to sublicense) to develop, make, have made, use, sell, offer to sell, distribute, export, and import Licensed Devices. The foregoing license shall be exclusive with respect to
Licensed Devices. 
  
 2.2.  OPTi Trademarks.    OPTi hereby grants to
Licensee a nonexclusive, nontransferable, fully-paid, royalty-free right and license (without right to sublicense) to reproduce and display the OPTi trademarks to be provided to Licensee under this Agreement (the “OPTi
Marks”) solely for the purposes of: (i) placing the OPTi Marks on the packaging of, and documentation for Licensed Devices; and (ii) in connection with the marketing and sale of Licensed Devices and Marked Products. 

 
 2.3.  OPTi reserves and retains all rights in the OPTi Marks not expressly granted to Licensee hereunder, and
Licensee agrees and acknowledges that, subject only to the licenses granted in this Section 2.2, OPTi owns all rights, title, and interest, including but not limited to all goodwill, in and to the OPTi Marks. 
  
 2.4.  With respect to all Marked Products, Licensee bears full responsibility for acquiring all rights (other than the right
granted herein to use the OPTi Mark) necessary to manufacture, distribute, market and use such Marked Products. Licensee hereby indemnifies OPTi, without limitation, for all damages, legal costs, fees and expenses related to any legal right or claim
asserted against OPTi related to any legal right or claim asserted against OPTi related to or in connection with the manufacture, distribution, marketing or use of any Marked Product. 
  
 2.5  Reservation.    Except for licenses and rights expressly granted in this Agreement, OPTi grants Licensee no license or
right, by implication, estoppel or otherwise, in the OPTi Technology under any OPTi Intellectual Property Rights. 

 
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 Licensee’s license rights under Section 2.1 expressly exclude any right under any OPTi Intellectual Property Rights to develop, make, use,
sell, offer to sell, export, or import any products other than Licensed Devices. 
  
 3    TECHNOLOGY TRANSFER AND
SUPPORT 
  
 3.1.  Delivery.    Within forty-five (45) days after the
execution of this Agreement, OPTi will provide to Licensee the deliverables for the OPTi Technology identified in Exhibit A. 
  
 3.2.  Technical Support.    No technical support will be provided by OPTi. 
  
 4    MANUFACTURING AND MARKING 
  
 4.1.  Licensee
Commitment.      Licensee expects to be able to manufacture Licensed Devices in quantity on an ongoing basis. Licensee will use reasonable efforts to promote to the electronics industry the use of integrated
circuits containing OPTi Technology as licensed hereunder. 
  
 4.2.  OPTi Proprietary
Markings.    Licensee shall duplicate and apply OPTi’s trademark, patent and other proprietary rights notices, which OPTi shall provide from time to time, to Licensed Devices and their documentation, such notices to
be consistent with the rights granted to Licensee pursuant to Sections 2.1 and 2.2. In consideration of the limited space for marking on semiconductor packaging, Licensee shall only be required to use its reasonable efforts to include all such
markings as requested by OPTi. 
  
 5    INTELLECTUAL PROPERTY RIGHTS 
  
 5.1.  OPTi Ownership.    All right, title, and interest in and to the OPTi Technology, and all
OPTi Intellectual Property Rights therein, shall remain the sole and exclusive property of OPTi. OPTi will maintain the trademarks or if OPTi decides to abandon the trademarks they will offer them to licensee for their use. 
  
 5.2.  Infringement. 
  
 (a)  In the event that Licensee learns of the substantial infringement by a third party of any intellectual property rights licensed under this
Agreement from OPTi, Licensee will promptly call OPTi’s attention thereto in writing and will provide OPTi with such evidence of such infringement as it may permitted to provide, either contractually or under applicable law. 

 
 (b)  Each party shall provide reasonable cooperation to the other, at the other’s expense, in
the other’s prosecution of a claim of infringement of intellectual property rights against a third party. 

 
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 (c)  If Licensee does not bring legal action for
infringement within ninety (90) days of notice thereof, OPTi shall have the sole right to bring legal action itself. In the event that legal action for infringement is brought by: (i) Licensee, any recoveries shall be subject to royalty payments to
OPTi set forth in Exhibit D; or (ii) OPTi, all recoveries shall belong to OPTi. 
  
 6    CONSIDERATION AND
PAYMENTS TERMS 
  
 6.1.  Fixed Payments and Royalties.    As
consideration for the license granted to Licensee in Section 2.1, Licensee will pay OPTi the amounts set forth in Exhibit D hereto for the sale of Licensed Devices during the term of this Agreement and any sell-off period permitted under
Section 10.5. 
  
 6.2.  No Change in Royalty Rates.    For purposes of
convenience in computing royalties under this Agreement, the fixed royalty rates specified in Exhibit D shall apply until the last of the OPTi Patent Rights have expired, after which no royalty shall apply. 
  
 6.3.  Payment Terms.    Within thirty (30) days after the end of each calendar quarter,
Licensee shall provide an accounting of the sales of Licensed Devices, if any, and shall pay OPTi the royalties due and payable hereunder (if any) in consideration of the sale of Licensed Devices in such calendar quarter. On any overdue payments,
Licensee shall pay an interest charge of the lower of one and one-half percent (1.5%) per month or the highest rate allowed by law upon the unpaid balance until the date of payment. 
  
 6.4.  Currency.    Licensee shall pay all amounts specified in this Agreement in U.S. dollars. Licensee will convert sales in
other currencies to U.S. dollars based on the average of the exchange rates published in the Wall Street Journal (West Coast Edition) for the month in which Licensee realizes the Net Revenue. 
  

6.5.  Taxes.    Licensee will pay all sales, use and other taxes imposed by any applicable laws and regulations as a result
of the payments under this Agreement, other than taxes based upon OPTi’s net income. Royalties which are payable by Licensee to OPTi hereunder will not be reduced by any tax withholding. 
  

7    RECORDS AND AUDIT REQUIREMENTS 
  
 7.1.  Records.    For a period of three (3) years after each royalty or other payment made to OPTi under this Agreement, Licensee agrees to make and maintain such books, records and
accounts as are reasonably necessary to verify from the sale of Licensed Devices royalty and other payments. 
  
 7.2.  Reports.    Within thirty (30) days after the end of each calendar quarter, for the term of this Agreement and through the end of the period specified in Section 10.5, 

 
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 Licensee shall furnish to OPTi a statement specifying the royalties due and/or credited for such quarter, along with all information reasonably
necessary for computation and/or confirmation of such royalties, including, but not limited to a listing of all Licensed Devices shipped in that quarter, set forth by Licensee product. If no royalties are due, that fact shall be shown on such
statement. 
  
 7.3.  Audit.    Upon at least thirty (30) days prior
written notice to Licensee, no more than once a year, OPTi shall have the right, at its own cost and expense, to authorize an internationally recognized certified public accounting firm (“CPA Firm”) selected by OPTi and
approved by Licensee, which approval will not be unreasonably withheld, to audit Licensee’s books, records, and accounts for the sole purpose of verifying royalties reported to OPTi under Section 7.2. Licensee will promptly make up any
underpayment revealed by any audit. If an audit reveals an understatement greater than five percent (5%) for the period audited, then Licensee will promptly reimburse OPTi for the cost of the audit. OPTi shall require such CPA Firm to maintain the
results of the audit in confidence. 
  
 8    CONFIDENTIAL INFORMATION 
  
 8.1.  Receipt of Confidential Information.    OPTi and Licensee acknowledge that, in the
course of performing their respective obligations hereunder, each may obtain information relating to the other and the other’s products that is of a confidential and proprietary nature to such other party. OPTi and Licensee agree that they
will: 
  
 (a)  Use the other party’s Confidential Information only in connection with
fulfilling its rights and obligations under this Agreement; 
  
 (b)  Hold the other
party’s Confidential Information in strict confidence and exercise due care with respect to its handling and protection, consistent with its own policies concerning protection of its own Confidential Information of like importance but in no
instance less than reasonable care. Before a party allows its employees or subcontractors access to the Confidential Information of the other party, the first party shall: (i) require its subcontractors to execute non-disclosure agreements; and
(ii) impose confidentiality obligations on its employees, either through the execution of non-disclosure agreements or through such party’s employee policy manuals, in each of cases (i) or (ii), providing protection of the other
party’s Confidential Information at least as strict as the terms and conditions of this Agreement; 
  
 (c)  Not disclose, divulge or publish the other party’s Confidential Information except to such of its responsible employees and subcontractors who have a bona fide need to know to the extent necessary to fulfill such
party’s obligations under this Agreement; and 

 
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 (d)  Instruct all such employees and subcontractors not
to disclose the other party’s Confidential Information to third parties, including consultants, without the prior written permission of the other party. 
  
 8.2.  Exclusions.    The obligations of this Section 8 does not apply to information which: (i) is or becomes public knowledge or is received by the other
party without the fault or action of the other party or any breach of any confidentiality obligation; (ii) the other party can document was independently developed by it without use of or access to the Confidential Information; (iii) the other party
can document was previously known to it prior to receipt of the Confidential Information; or (iv) is required to be disclosed pursuant to law, provided the other party uses reasonable efforts to give the party owning the Confidential Information
sufficient notice of such required disclosure to allow the party owning the Confidential Information reasonable opportunity to contest or reduce the scope of such disclosure. 
  
 8.3.  Injunctive Relief.    Each of the parties acknowledges that unauthorized disclosure or use of the other party’s
Confidential Information or infringement or misappropriation of the other party’s intellectual property rights could cause irreparable harm and significant injury that would be difficult to ascertain and may not be compensable by damages alone.
Accordingly, the parties agree that, in addition to any and all legal remedies, claims regarding intellectual property rights or Confidential Information may, subject to claims, be remedied by specific performance, injunction or other appropriate
equitable relief. 
  
 9    WARRANTIES 
  
 9.1.  Warranties of Right.    Each party represents and warrants that it has the corporate power and authority to enter into
this Agreement. 
  
 9.2.  No Known Infringement Claims.    OPTi
represents and warrants that, as of the Effective Date, it has not received notice from any third party of any claim, nor has it any knowledge of any potential third party that might have a claim, that the OPTi Technology infringes any third party
patents, copyrights, or trade secrets. 
  
 9.3.  No Other Warranty or
Representation.    NOTHING IN THIS AGREEMENT WILL BE CONSTRUED AS: (I) A WARRANTY OR REPRESENTATION BY OPTi AS TO THE VALIDITY OR SCOPE OF ITS INTELLECTUAL PROPERTY RIGHTS; (II) A WARRANTY OR REPRESENTATION THAT ANY
PRODUCT, SERVICES, OR INFORMATION PROVIDED, MADE, USED, SOLD OR OTHERWISE DISPOSED OF UNDER ANY LICENSE GRANTED OR AGREED TO BE GRANTED BY OPTi IN THIS AGREEMENT IS OR WILL BE FREE FROM INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES;
OR (III) ANY OBLIGATION OF OPTi TO BRING OR PROSECUTE ACTIONS OR SUITS AGAINST THIRD PARTIES 

 
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 FOR INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, ALL
PRODUCTS, SERVICES, AND INFORMATION PROVIDED HEREUNDER ARE PROVIDED “AS-IS”, AND OPTi MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND, WITH RESPECT TO ANY INFORMATION, PRODUCT, OR SERVICES SUPPLIED TO LICENSEE HEREUNDER, WHETHER EXPRESS,
IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NONINFRINGEMENT. 
  
 10    TERM AND TERMINATION 
  
 10.1.  Term.    Unless sooner terminated as provided in this Section 10, this Agreement will commence on the Effective Date and continue until the longer of: (i) the pendency of any
unissued patent applications which constitute the OPTi Patent Rights, and (ii) expiration of the last of any issued patents which constitute the OPTi Patent Rights. 
  
 10.2.  Termination for Convenience.    Licensee may terminate this Agreement at any time for convenience upon ninety (90) days
advance written notice. 
  
 10.3.  Termination due to Material
Breach.    If either party materially breaches any term or condition of this Agreement and fails to cure that breach within ninety (90) days after receiving written notice of the breach, the other party shall have the
right to terminate this Agreement at any time after the end of such ninety (90) day period. 
  
 10.4.  Termination due to Insolvency.    If either party becomes the subject of a voluntary or involuntary petition in bankruptcy or any proceeding relating to insolvency, receivership,
liquidation, or composition for the benefit of creditors, if that petition or proceeding is not resolved in its favor within sixty (60) days after filing, the other party may terminate this Agreement immediately on written notice. 

 
 10.5.  Work in Progress.    Upon any termination or expiration of this Agreement
under Sections 10.3 or 10.4, Licensee shall have the right, subject to its compliance with the terms of this Agreement, including, but not limited to, continued payment of royalties, to continue to exercise the license rights granted to it under
Section 2.1 for no more than six (6) months after the effective date of such termination or expiration only to the extent necessary to sell off its then-existing inventory of Licensed Devices, including without limitation any Licensed Devices then
in production at a Licensee facility; provided, however, that Licensee shall have no right to begin the manufacture of any Licensed Devices after any termination or expiration of this Agreement. 
  

10.6.  No Liability for Damages.    Neither party will be liable for damages of any kind solely as a result of exercising
its right to terminate this Agreement according to its 

 
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 terms. Further, termination will not affect any other right or remedy at law or in equity of either
party, subject to the limitations of this Agreement. 
  
 10.7.  Obligations Upon Termination or
Expiration.    Upon any termination or expiration of this Agreement, Licensee shall: (i) promptly pay OPTi any unpaid amount due as of such termination or expiration and continue to make all payments hereunder as they
become due; and (ii) each party shall return or destroy all copies of the Confidential Information of the other party, except for Confidential Information required to exercise a party’s surviving rights, within thirty (30) days after the
termination or expiration, and, at the request of the other party, have an officer certify in writing that the party has complied with this obligation. 
  
 10.8.  Survival of Obligations.    The following provisions shall survive termination or expiration of this Agreement for any reason: Sections 1
(Definitions); 5.1 (OPTi Ownership); 6 (Payments and Payment Terms); 7 (Records and Audit Requirements); 8 (Confidential Information); 9 (Warranties); 10 (Term and Termination); 11 (Limitation of Liability); and 12 (General). 

 
 11    LIMITATION OF LIABILITY 
  
 11.1.  General Limitation of Damages.    EXCEPT FOR DAMAGES CAUSED BY UNAUTHORIZED DISCLOSURE OF CONFIDENTIAL INFORMATION, IN NO EVENT SHALL EITHER PARTY BE
LIABLE FOR LOSS OF USE, DATA OR PROFITS, INTERRUPTION OF BUSINESS OR ANY SPECIAL, INCIDENTAL, INDIRECT, EXEMPLARY, OR CONSEQUENTIAL DAMAGES, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, HOWEVER CAUSED, ON ANY THEORY OF LIABILITY, WHETHER IN
AN ACTION FOR CONTRACT, STRICT LIABILITY, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, AND WHETHER OR NOT THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. 
  
 11.2.  Specific Limitation.    EXCEPT FOR LICENSEE’S OBLIGATIONS TO MAKE PAYMENTS WHEN DUE, THE AGGREGATE LIABILITY OF
EITHER PARTY UNDER THIS AGREEMENT SHALL NOT EXCEED THE TOTAL OF THE AMOUNTS PAID UNDER THIS AGREEMENT. 
  
 11.3.  Severability.    EACH AND EVERY PROVISION OF THIS AGREEMENT WHICH PROVIDES FOR A LIMITATION OF LIABILITY, DISCLAIMER OF WARRANTY OR EXCLUSION OF DAMAGES IS INTENDED BY THE PARTIES TO
BE SEVERABLE AND INDEPENDENT OF ANY OTHER SUCH PROVISION. FURTHER, IN THE EVENT THAT ANY REMEDY HEREUNDER IS DETERMINED TO HAVE FAILED OF ITS ESSENTIAL PURPOSE, ALL LIMITATIONS OF LIABILITY AND EXCLUSIONS OF DAMAGES SHALL REMAIN IN EFFECT.

 
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 12    GENERAL 
  
 12.1.  Joint Press Announcement.    The parties agree to make a joint press announcement regarding the technology alliance
contemplated hereunder at a time and in a format and manner mutually agreeable to both parties. Both parties shall provide management and coordination of such press announcement. Additionally, without regard to this sections, or the confidentiality
portions of this Agreement, either party may make such disclosures as required under the Security and Exchange Commission laws, regulations and rules. 
  
 12.2.  Governing Law.    This Agreement will be governed by and interpreted in accordance with the laws of the State of California without reference to its
conflicts of law. The parties agree to the exclusive jurisdiction, and hereby irrevocably waive objection to the inconvenience of the forum, of the federal and state courts located in the Northern District of California. The parties additionally
agree to waive the right to a jury trial. 
  
 12.3.  Assignment.    OPTi
may freely assign this Agreement. Licensee may assign all of its rights and obligations under this Agreement in connection with a merger with or into another corporation or other entity or the sale of all or substantially all that party’s
assets. Except as set forth herein, Licensee may not assign this Agreement without the prior written consent of OPTi. Any attempted assignment in derogation of this Section 12.3 will be null and void. 
  
 12.4.  Modification and Waiver.    No modification to this Agreement, nor any waiver of any
rights, will be effective unless assented to in writing by the party to be charged, and the waiver of any breach or default shall not constitute a waiver of any other right hereunder or any subsequent breach or default. 
  
 12.5.  Notices.    Any required or permitted notices hereunder must be given in writing at the
address of each party set forth below, or to such other address as either party may substitute by written notice to the other in the manner contemplated herein, by one of the following methods: hand delivery; registered, express, or certified mail,
return receipt requested, postage prepaid; internationally-recognized private express courier; or facsimile. Notices will be deemed given on the date when hand delivered or transmitted by facsimile, five (5) days after being sent by express mail or
internationally-recognized private express courier, and ten (10) days after being sent by registered or certified mail. 
  
 
	 If to OPTi:
 	  	 If to Licensee:
 
	 OPTi Inc.
 880 Maude Avenue, Ste
A
 Mountain View, CA 94043
 Fax: (650) 625-8781

Attn: Bernard Marren
 	  	 Opti Technology, Inc.
 732 Sussex
Place
 Milpitas, CA 94035
 Fax:
 Attn: Ming Hsu
 

 
  
  
  
  

 
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 12.6.  Compliance with Law, including Export
Laws.    Each party agrees to comply with all applicable international, national, state, regional and local laws and regulations (including, without limitation, export laws and regulations) in performing its duties
hereunder and in any of its dealings with respect to the technical information and technology disclosed hereunder or direct products thereof. 
  
 12.7.  Force Majeure.    Neither party shall be responsible for delay or failure in performance caused by any government act, law, regulation, order or
decree, by communication line or power failures beyond its control, or by fire, flood or other natural disasters or by other causes beyond its reasonable control, nor shall any such delay or failure be considered to be a breach of this Agreement. In
any such event, performance shall take place as soon thereafter as is reasonably feasible. 
  
 12.8.  Independent Contractors.    In performing their respective duties under this Agreement, each of the parties will be operating as an independent contractor. Nothing contained herein
will in any way constitute any association, partnership, or joint venture between the parties hereto, or be construed to evidence the intention of the parties to establish any such relationship. Neither party will have the power to bind the other
party or incur obligations on the other party’s behalf without the other party’s prior written consent. 
  
 12.9.  Severability.    In the event that it is determined by a court of competent jurisdiction that any provision of this Agreement is invalid, illegal, or otherwise unenforceable, such
provision will be enforced as nearly as possible in accordance with the stated intention of the parties, while the remainder of this Agreement will remain in full force and effect and bind the parties according to its terms. To the extent any
provision cannot be enforced in accordance with the stated intentions of the parties, such provisions will be deemed not to be a part of this Agreement. 
  
 12.10.  Headings.    The headings of the Sections of this Agreement are for convenience only and will not be of any effect in construing the meanings of the
Sections. 
  
 12.11.  Counterparts.    This Agreement may be executed in
multiple counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 
  
 12.12.  Entire Agreement.    This Agreement and the Exhibits attached hereto constitute the entire and exclusive agreement between the parties hereto with respect to the subject
matter hereof and supersede any prior agreements between the parties with respect to such subject matter. 

 
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 IN WITNESS WHEREOF, OPTi and Licensee have caused this Agreement to be executed
by their duly authorized representatives as of the Effective Date. 
  
 
	 /s/    BERNARD MARREN
 	  	 /s/    MING HSU
 
	 
	  	 

	 Signature
 	  	 Signature
 
	 President & CEO
 	  	 President
 
	 
	  	 

	 Title
 	  	 Title
 
	 September 30, 2002
 	  	 September 30, 2002
 
	 
	  	 

	 Date
 	  	 Date
 

 

 
 11<PAGE>

                                                                  Exhibit 10.117

                                PROCESS AGREEMENT

               This PROCESS AGREEMENT (this "Agreement") dated as of October 16,
2002 is made between Nexell Therapeutics Inc., a Delaware corporation (the
"Company"), and Baxter International Inc., a Delaware corporation, and Baxter
Healthcare Corporation, a Delaware corporation (together, "Baxter").

               WHEREAS, on May 15, 2002, the Company announced that it was
commencing a wind down of its operations; and

               WHEREAS, the Company has been exploring alternatives available to
it in effecting the wind-down, including liquidation or reorganization under the
federal bankruptcy code, dissolution under Delaware law or other process or
transaction; and

               WHEREAS, the liquidation preference of the Company's outstanding
Cumulative Convertible Series A Preferred Stock ("Series A Preferred Stock") and
Cumulative Convertible Series B Preferred Stock ("Series B Preferred Stock") is
in the aggregate amount of approximately $150,500,000, which is substantially in
excess of the value of the Company's assets; and

               WHEREAS, the Company and Baxter agree that it is in the Company's
best interest to preserve the maximum value of the Company's assets by promptly
winding up the Company's affairs and commencing an orderly liquidation of its
assets, and in connection therewith, Baxter has agreed to a cash distribution to
the holders of common stock, par value $.001 per share ("Common Stock") other
than Baxter, subject to certain conditions; and

               WHEREAS, the Company and Baxter desire to confirm certain
understandings in connection with the foregoing.

               NOW, THEREFORE, in consideration of the foregoing and of the
mutual covenants and agreements contained herein, the parties agree as follows:

               Section 1.   Liquidation. Promptly following, concurrently with,
or immediately prior to the execution of this Agreement, the Company, acting
through its Board of Directors, will vote on a resolution approving this
Agreement, including the adjustment of the Series B Preferred Stock conversion
price as provided herein, deeming it advisable that the Company be dissolved and
approving and adopting a plan of complete liquidation and dissolution of the
Company in the form attached as Exhibit A (the "Plan"), and approving the form
of an Information Statement as contemplated by Section 3. In the event that the
Board of Directors shall not approve all of the foregoing within 3 days of the
date hereof, this Agreement shall be null and void. Subject to the approval of
the Plan by the Company's stockholders as contemplated by Section 2 below and
Baxter's compliance with its obligations hereunder, the Company agrees to take
any and all action necessary to carry out the terms and the intent of the Plan
and to effect the liquidation of the Company as contemplated thereby and by the
Timetable previously exchanged by the parties (the "Timetable"), recognizing
that the dates are estimates and are subject to factors outside the control of
the parties. Notwithstanding the liquidation preference of the holders of Series
A Preferred Stock and Series B Preferred Stock, Baxter

                                       1

<PAGE>

agrees, and if deemed necessary by the Company, shall secure the consent of all
the holders of Series B Preferred Stock, that pursuant to the Plan the Company
may make a liquidating distribution or distributions to the holders of Common
Stock (other than Baxter) in an amount of $0.05 per share (but not to exceed an
aggregate of $872,026 to all such holders of Common Stock), and that such
preferred holders shall waive any provisions in the Company's Certificate of
Incorporation, including any Certificate of Designation, the Securities
Agreement dated November 24, 1999, the Registration Rights Agreement dated
November 24, 1999 and any other agreements or rights they may otherwise have as
necessary to permit such distribution and the other transactions expressly
contemplated by the Plan, including but not limited to, any right of holders of
Series B Preferred Stock to "Common Equivalent Dividends" as defined in the
Company's Certificate of Designation filed with the Delaware Secretary of State
on November 24, 1999 and any rights resulting or arising by virtue of any unpaid
past, current or future semi-annual cash dividends with respect to the Series B
Preferred Stock.

               Section 2.   Information Statement. Promptly following adoption
of the Plan by the Board of Directors of the Company, the Company shall prepare
and file with the Securities and Exchange Commission (the "SEC") a preliminary
Information Statement in form reasonably satisfactory to the parties hereto and
shall use its best efforts to respond to any comments of the SEC or its staff,
and, to the extent permitted by law, to cause such Information Statement to be
mailed to the Company's stockholders as promptly as practicable after responding
to all such comments to the satisfaction of the staff. The Company shall notify
Baxter promptly of the receipt of any comments from the SEC or its staff and of
any request by the SEC or its staff for amendments or supplements to such
Information Statement or for additional information and will promptly supply
Baxter with copies of all correspondence between the Company or any of its
representatives, on the one hand, and the SEC or its staff, on the other hand,
with respect to such Information Statement or the Plan.

               Section 3.   Shareholder Consent. Promptly following the
resolution of any comments from the SEC regarding the Information Statement, the
Company shall take such actions as are necessary to set a record date for a
written stockholder consent approving the Plan and shall request Baxter to
execute or cause to be executed a consent as provided in Section 4.

               Section 4.   Shareholder Approval. Baxter agrees to execute or
cause to be executed (and not revoke) a written consent in favor of the Plan,
which consent shall represent a majority of outstanding shares of Common Stock
as contemplated by Section 6 below.

               Section 5.   Put. Baxter shall obtain the right to acquire all of
the issued and outstanding shares of the Series B Preferred Stock. Baxter agrees
to acquire the Series B Preferred Stock (and the associated Class A Warrants and
Class B Warrants, which Baxter agrees it will not exercise at any time unless
the Plan is not carried out as contemplated hereby) and to exercise or cause to
be exercised those certain put rights issued by Baxter International Inc. on
November 24, 1999 on a date (the "Put Exercise Date") no later than immediately
prior to the record date for the stockholder consent. In consideration of the
benefits afforded to the Company and the holders of its Common Stock pursuant to
this Agreement and the Plan, the Company agrees to the acceleration of the
exercisability of such put rights to the Put Exercise Date. Baxter and the
Company agree that, pursuant to the terms of that certain Side Letter Agreement
dated November 24, 1999, among Baxter, the Company and certain other parties
(the "Side Letter"), the conversion price of the Series B Preferred Stock is
hereby adjusted to a price

                                       2

<PAGE>

equal to $0.09 per share of Common Stock, effective as of the Put Exercise Date.
Baxter agrees that it will not exercise at any time the warrant issued by the
Company to Baxter on May 28, 1999 unless the Plan is not carried out as
contemplated hereby.

               Section 6.   Conversion. Following the exercise of the put rights
and no later than immediately prior to the record date for the stockholder
consent, Baxter shall convert or cause to be converted so much of the Series B
Preferred Stock as would be necessary for Baxter, its affiliates and assignees
to be the record holder of a majority of the then outstanding shares of Common
Stock (the date of such conversion being referred to herein as the "Conversion
Date"). The remaining Series B Preferred Stock and all of the Series A Preferred
Stock would not be converted to Common Stock and would remain outstanding,
retaining its liquidation preference.

               Section 7.   Timetable. The parties agree to cooperate with each
other and use commercially reasonable effort to effect the actions set forth on
the Timetable as soon as practicable.

               Section 8.   Board of Directors. Immediately after the approval
by the Board of Directors of the Plan, this Agreement, the adjusted Series B
Preferred Stock conversion price and the form of the Information Statement,
Victor W. Schmitt shall be appointed to the Board of Directors to serve through
the final distribution of the Company's assets as contemplated by the Plan.

               Section 9.   Additional Limitation. Notwithstanding the
provisions contained in Section 10 of the Plan, the Company shall not pay,
authorize or enter into any arrangement for compensation or other payments
within the scope of Section 10 of the Plan in excess of the estimated amounts
set forth in Schedule F to the Plan without the consent of Baxter, which consent
shall not be unreasonably withheld.

               Section 10.  Valuation. The Company shall deliver to Baxter a
copy of the determinations of fair market value by the Board of Directors
contemplated by Section 3(d) of the Plan.

               Section 11.  Conditions to Baxter's Obligations. The obligations
of Baxter contained in Sections 4, 5 and 6 above shall be subject to the
compliance by the Company of all of its obligations hereunder.

               Section 12.  Representations and Warranties. (a) The Company
represents and warrants to Baxter that (1) the Company is a corporation duly
organized and validly existing under the laws of the State of Delaware, (2) the
Company has taken all corporate action necessary for it to execute, deliver and
perform this Agreement (subject to Section 4 hereof), (3) the Company has full
power and authority to enter into this Agreement and perform its obligations
hereunder and (4) this Agreement is the valid and legally binding agreement of
the Company enforceable in accordance with its terms.

               (b)  The Company represents and warrants to Baxter that: (1) it
has provided to Baxter a cash analysis setting forth the cash currently
available or estimated to become available to the Company from the collection or
disposition of assets, the application of such available cash for the settlement
of liabilities, claims and obligations, the payment of the continuing

                                       3

<PAGE>

expenses of the liquidation and the amount of cash remaining for distribution to
the stockholders of the Company and an analysis of the claims and obligations of
the Company of the nature described in Paragraph 3(c) of the Plan (the "Cash and
Claims Analysis") and (2) it has provided to Baxter a list of patents and patent
applications owned or held by the Company (the "Patent List"). The Company
represents and warrants to Baxter that (1) to the Company's knowledge, the Cash
and Claims Analysis, the Patent List and each of the Schedules attached to the
Plan set forth in all material respects a true, correct, complete and accurate
description of the information purported to be set forth therein, and (2) to the
Company's knowledge none of the information in the Cash and Claims Analysis, the
Patent List or any such Schedule is false or misleading in any material respect
or omits to state a fact necessary to make the statements therein not misleading
in any material respect.

               (c)  Baxter represents and warrants to the Company that (1)
Baxter is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware, (2) Baxter has taken all corporate
action necessary for it to execute, deliver and perform this Agreement, (3)
Baxter has full power and authority to enter into this Agreement and perform its
obligations hereunder and (4) this Agreement is the valid and legally binding
agreement of Baxter enforceable in accordance with its terms.

               Section 13.  Binding Agreement. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
permitted successors and assigns.

               Section 14.  Assignment. Neither party hereto may assign or
transfer this Agreement without the prior written consent of the other party
hereto; provided, however, that either party hereto may assign this Agreement to
any person or entity with or into which such party may merge or consolidate or
to whom all or substantially all of its assets or businesses may be sold; and
provided further that Baxter may assign this Agreement to any wholly-owned
subsidiary of Baxter, or to any other person to which Baxter and its affiliates
shall transfer all of their interest in the capital stock of the Company and
which shall assume and be bound by all of the obligations of and restrictions on
Baxter hereunder, including, without limitation, Section 5 hereof, provided that
the foregoing shall not relieve Baxter of its obligations hereunder.

               Section 15.  Entire Agreement. This Agreement sets forth the
entire understanding of the parties hereto with respect to the subject matter
hereof and supersedes all prior agreements, written and oral, among the parties
hereto as to such subject matter.

               Section 16.  Waiver. The waiver by either party hereto of any
breach of any provision of this Agreement shall not constitute or operate as a
waiver of any other breach of such provision or of any other provision hereof,
nor shall any failure to enforce any provision hereof operate as a waiver of
such provision or of any other provision hereof.

               Section 17.  Expenses. Except as expressly provided in this
Agreement and subject to any rights based on a breach of this Agreement, each
party hereto shall bear its own costs and expenses incident hereto.

                                       4

<PAGE>

               Section 18.  Amendments. This Agreement may not be amended, nor
may any provision hereof be modified or waived, except by an instrument in
writing duly signed by all parties hereto.

               Section 19.  Severability. If any provision of this Agreement
shall be held invalid, illegal or unenforceable, the validity, legality or
enforceability of the other provisions hereof shall not be affected thereby, and
there shall be substituted for the provision at issue a valid and enforceable
provision as similar as possible to the provision at issue.

               Section 20.  Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without
reference to the principles of conflict of laws thereof.

               Section 21.  Headings. The headings contained in this Agreement
are for reference purposes only and shall not affect the meaning,
interpretation, enforceability or validity of this Agreement.

               Section 22.  Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original but all of
which taken together shall constitute one and the same document.

               Section 23.  No Third Party Beneficiaries. Nothing in this
Agreement, express or implied, is intended to confer or does confer on any
person or entity, other than the parties hereto and their respective successors
and permitted assigns, any rights or remedies under or by reason of this
Agreement.

*  *  *  *  *  *

                                       5

<PAGE>

IN WITNESS WHEREOF, the Company and Baxter have each caused this Agreement to be
executed by their duly authorized officers as of the date first written above.

                                           NEXELL THERAPEUTICS INC.

                                           By: /s/ William A. Albright, Jr.
                                               -------------------------------
                                           Name:  William A. Albright, Jr.
                                           Title: Chief Executive Officer

                                           BAXTER INTERNATIONAL INC.

                                           By: /s/ Jan Stern Reed
                                               -------------------------------
                                           Name:  Jan Stern Reed
                                           Title: Corporate Secretary

                                           BAXTER HEALTHCARE CORPORATION

                                           By: /s/ Jan Stern Reed
                                               -------------------------------
                                           Name:  Jan Stern Reed
                                           Title: Secretary

                                       6

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