Document:

Alliance Agreement and Joint Development Agreement

 Exhibit 10.30 
 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
 ALLIANCE AGREEMENT 
 This Alliance Agreement (the “Agreement”) is made the 16th day of June, 2003 (the “Effective Date”) between: 
 BETWEEN 
 ALIEN TECHNOLOGY CORPORATION (“ALIEN”) a
company organized and existing under the laws of California, with a place of business at 18220 Butterfield Blvd, Morgan Hill, CA 95037, represented by Stavro Prodromou, in his quality of President and Chief Executive Officer, 
 On the one hand, 
 AND 
 STMicroelectronics NV (“ST”) a company organized and existing under the laws of the Netherlands, with a place of business at WTC Schiphol Airport
Amsterdam, Schiphol Boulevard 265, 1118 BH Schiphol Airport, the Netherlands, acting for the purposes of this Agreement through its Swiss Branch with offices at 39, chemin du Champ-des-Filles, 1228 Plan-les-Ouates, Geneva, Switzerland, represented
by Carlo Bozotti, in his quality of Corporate V.P., 
 On the other hand. 
 Collectively referred to as the “Parties” or individually as the “Party”. 
 RECITALS

  

	1.	ST and ALIEN are both active sponsors of the Auto-ID Center created by the Massachusetts Institute of Technology (“MIT”) and share its vision of a common specification to
drive mass adoption of low-cost RFID as a next-generation Auto-ID solution; 

  

	2.	ALIEN has developed high-performance, low-cost RFID products (IC, tags, and reader) which operate according to the Auto-ID Center’s Class 1 specification;

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
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	3.	ST designs, develops, manufactures and markets a wide variety of semiconductor integrated circuits and discrete components, including in particular various non-volatile memories,
smart card chips and other memory-based special function ICs; In particular, ST has developed a full portfolio of contactless memories and readers notably based on 13.56Mhz protocols and set-up cost effective manufacturing facilities to enter this
cost driven market. 

  

	4.	ST and ALIEN desire to leverage each other’s expertise, technology, and manufacturing capabilities in order to gain a substantial leadership position in the field of low-cost,
high-performance RFID products which operate according to the Auto-ID Center specifications, such as additional Class 1 ICs, Class 2 ICs, RFID inlays and RFID readers for the mutual advantage of ST and ALIEN; 

  

	5.	ST and ALIEN are both committed to accelerating the growth and driving mass adoption of the low-cost RFID as a next-generation Auto-ID solution, and are interested in leveraging the
strengths of both companies to help make this happen; 

  

	6.	ST and ALIEN desire to define the general framework under which: 

  

	 	a.	the Parties will cooperate in the design and development of RFID products, based on ST process technology, ST non volatile memories expertise and know how in the field of
contactless memories and readers, that will operate in accordance with the Auto-ID Center specifications and future evolutions; and 

  

	 	b.	ST will manufacture and supply to ALIEN as well as to third parties such RFID products; and 

  

	 	c.	the Parties will cooperate in the marketing of such RFID products with the mutual goal of accelerating adoption of low-cost RFID in order to build manufacturing volume rapidly and
to thereby drive down manufacturing costs. This activity is expected to include joint marketing to individual customers, as well as industry marketing to broader audiences; and 

  

	 	d.	The Parties will collaborate to support the worldwide adoption of the Auto-ID Center’s specifications as the standard platform for the deployment of the RFID technology
worldwide. This activity is expected to focus in particular on the UHF and microwave frequency bands; and 

  

	 	e.	The Parties will cooperate in the advancement and implementation of low-cost RFID tag manufacturing techniques best suited to meet the demands of the market in the near-, medium-,
and long-term, according to the manufacturing volumes required. This cooperation is expected to leverage ST’s low-cost manufacturing capabilities and infrastructure and ALIEN’s low-cost, high-volume IC packaging and tag assembly
approaches. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
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 NOW, THEREFORE, in furtherance of the foregoing Recitals and in consideration of the mutual covenants and
obligations set forth in this Agreement, the Parties agree as follows: 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
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	1	Establishment of Alliance 

 ALIEN and ST hereby form
an alliance under which the Parties will cooperate in the design, development and marketing of certain RFID products - that are designated as “Alliance RFID Products” and defined in Paragraph 4.2 of this Agreement - for sales by ALIEN and
ST, individually or jointly, under terms and conditions to be mutually agreed upon by the Parties in specific Project Agreements. As a part of this Alliance, ST will serve as the exclusive manufacturer of such Alliance RFID Products and ST will sell
and ALIEN will purchase such Alliance RFID Products under terms and conditions to be mutually agreed upon by the Parties in specific Project Agreements. Also as a part of this Alliance, the Parties will jointly promote AutoID compliant devices for a
fast large volume deployment worldwide according to terms and conditions to be mutually agreed upon by the Parties in a specific Project Agreement. 
  

	2	Relationship between Alliance Agreement and Project Agreements. 

 This Alliance Agreement constitutes the framework defining the terms and conditions for the Alliance. Specific Alliance RFID Products joint development activities, manufacturing and supply activities, and marketing
efforts (“Projects”) may be launched by the Alliance. Projects will be subject to the terms and conditions established in corresponding specific Project Agreements that will be titled as either “Development Agreement”,
“Manufacturing and Supply Agreement”, or “Marketing Agreement” depending on the nature of the activities governed by these Project Agreements. This Alliance Agreement establishes the contents of future Project Agreements and
default provisions therefore. Any deviation in a Project Agreement from the framework established in this Alliance Agreement should be identified clearly in the Project Agreements. If any provision in a Project Agreement is in conflict with a
provision in this Alliance Agreement, the provision in the Project Agreement controls. 
  

	3	Intellectual Property Definitions 

  

	 	3.1	“Technology” means developments, ideas, designs, inventions, information, know-how, technology, both tangible and intangible, and Intellectual Property Rights.

  

	 	3.2	 “Intellectual Property Rights” means (a) all Patent Rights, (b) all United States and foreign semiconductor mask work rights and
registrations for such rights, and (c) all copyright rights and all other literary property and author rights, whether or not copyrightable, and all copyrights and copyrighted interests, including any renewals thereof, and (d) rights
relating to the protection of trade secrets and confidential information, and 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
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(e) any right analogous to those set forth herein and any proprietary rights relating to intangible property. 

  

	 	3.3	“Patent Rights” means all United States and foreign patent and application for patent, industrial models, industrial designs, utility models, certificates of
invention, and other indicia of invention ownership, including any such rights granted upon reissue, division, continuation or continuation-in-part applications. 

  

	 	3.4	“Background Technology” of a Party means any and all Technology that such Party (i) either (a) owned or controlled prior to the Effective Date of this
Agreement or of the relevant Project Agreement; or (b) develops or acquires ownership or control of, during the term of this Agreement or of the relevant Project Agreement but outside the scope of activities pursuant to this Agreement or the
relevant Project Agreement, and (ii) in each case, that is used in conjunction with the specific Project, whether or not incorporated into an Alliance RFID Product. 

  

	 	3.5	“Foreground Technology” of a Party means any and all Technology that is developed or conceived solely by employees of that Party during work within the scope of and
pursuant to this Agreement or the relevant Project Agreement, whether or not incorporated into an Alliance RFID Product. 

  

	 	3.6	“Joint Foreground Technology” means any and all Technology that is developed or conceived either (a) jointly by ALIEN and ST employees during work within the
scope of and pursuant to this Agreement or the relevant Project Agreement, or (b) by employees of one of the Parties arising out of or as a result of work done under this Agreement or the relevant Project Agreement and such Foreground
Technology is based on the other Party’s proprietary Foreground or Background Technology or on jointly developed or conceived Joint Foreground Technology in the meaning of (a) above. 

  

	 	3.7	“FSA Technology” means the materials, equipment and processes required to perform Alien’s “Fluidic Self Assembly” approach to placing shaped
integrated circuits, called NanoBlockTM ICs, into rolls of plastic film and forming interconnects to those ICs, to the extent constituting ALIEN Background Technology. 

  

	 	3.8	“NanoBlock Technology” means Alien NanoBlockTM IC specifications and formation process, irrespective of the assembly technology used to convert the chip into
the RF Tag, to the extent constituting ALIEN Background Technology. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
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	4	General Definitions 

  

	 	4.1	“Alliance” means the collaboration between ALIEN and ST entered into under this Agreement. 

  

	 	4.2	“Alliance RFID Products” means RFID Products compliant with existing Auto-ID Center specifications and future evolutions thereof jointly developed by ALIEN and ST
within the framework of a Project using ST process technology. 

  

	 	4.3	“Mask Works” means any and all masks generated for the manufacturing of the Alliance RFID Products. 

  

	 	4.4	“RFID Products” means integrated circuits, tags and/or readers that are targeted to the Radio Frequency Identification applications. 

  

	 	4.5	“Confidential Information” shall have the meaning set forth in Paragraph 7.2 of this Agreement. 

  

	 	4.6	“Project” means any project entered into under the Alliance and governed by a Project Agreement. 

  

	 	4.7	“Term” means the period from Effective Date till Expiry Date of this Agreement. 

  

	 	4.8	“Affiliates” means an entity controlling, controlled by or under common control with ST or ALIEN , at the Effective Date of this Agreement or thereafter, for so
long as such control exists. For the purposes of this definition, “control” shall mean direct or indirect possession of greater than 50 % of the voting rights of such entity or other type ownership interests with sufficient power to
elect or cause the election of a majority of the Board of Directors or like governing body of such legal entity. 

  

	5	Organization responsible for the execution of this Agreement : 

  

	 	5.1	Alliance administration. Alliance Coordinators (as designated in Paragraph 5.3) will be responsible for the successful execution of the Alliance and undertake to meet at
least twice a year to review the operation of this Agreement and the Projects being executed within its framework. These meetings will include the Alliance Coordinators and other relevant executives of both Parties, for example Stavro Prodromou
(ALIEN) and Claude Dardanne (ST), hereafter referred to as the “Executive Committee”. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
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	 	5.2	Project Administration. The Project Agreement for a specific Project shall establish the organization responsible for the implementation of that Project. That organization
will normally consist of a team comprising senior management representatives of each Party, and a “Program Management” team tasked with the management and execution of the Project. 

  

	 	5.3	Alliance Coordinators. 

  

	 	5.3.1	ALIEN designates the following person as its Alliance Coordinator: 

  

			
	 Name:
	  	Thomas M. Pounds
	 Company:
	  	Alien Technology Corp.
	 Address:
	  	18220 Butterfield Blvd.
		  	Morgan Hill, CA 95037 USA
	 Phone:
	  	408-201-7470
	 Fax:
	  	408-782-3908

  

	 	5.3.2	ST designates the following person as its Alliance Coordinator: 

  

			
	 Name:
	  	Francis Dell’Ova
	 Company:
	  	STMicroelectronics
	 Address:
	  	ZI de Rousset – BP 2
		  	13106 Rousset cedex, France
	 Phone:
	  	+33 (0)4 42 68 82 42
	 Fax:
	  	+33 (0)4 42 29 00 68

  

	 	5.3.3	The responsibility of the Alliance Coordinator for each Party will be to act as an overall coordinator for cooperation between the Parties under the Alliance. Each Party will advise
the other Party in writing of any successor Alliance Coordinator. 

  

	6	Launching of new Projects: 

  

	 	6.1	At any time during the Term of the Alliance, one Party may make to the other Party a new Project Request containing the information stated in Paragraph 6.2 below. New Project
Requests should involve activities to be performed by both Parties within the framework of the Alliance. This may include: new Alliance RFID Product design and development, a modification of an existing Alliance RFID Product for either Party that
will require any level of participation from the other Party, manufacturing and supply activities and joint marketing efforts. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
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	 	6.2	The Party issuing a new Project Request shall provide to the other Party the following information: 

  

	 	(a)	Project title and brief description clearly identifying the application, reasons for and mutual interests of the Parties in the Project, the deliverables and estimated duration.
Where appropriate, estimates of chip size, package, customers pricing and volume objectives also will be included. 

  

	 	(b)	Clear definition of respective responsibilities for each Party to the Project. 

  

	 	(c)	Identification of risks and any mitigation strategies. 

  

	 	(d)	The proposed organization of the Project. 

  

	 	6.3	The Alliance Coordinators of each Party shall mutually evaluate the feasibility and interest of the new Project Request. The non requesting Party will decide in good faith whether
it is willing to enter the Project or not. Prior to starting a new Project, the Parties shall clearly define the business model(s) applicable for that Project, including marketing, sales, costing and pricing, logistics related to the sales of the
products as well as the expected sales revenues and net revenue to be generated. 

  

	7	Confidentiality and Press Releases 

  

	 	7.1	Non-Disclosure Agreement. The Parties hereby agree to execute a non-disclosure agreement to protect the confidentiality and limit the use of any Confidential Information
exchanged in connection with the Alliance and/or within the framework of specific Projects. 

  

	 	7.2	Public announcement. The Parties expressly agree that no press release or public disclosure of the existence and the terms and conditions of the Alliance or the activities
pertaining thereto (including the Projects, Project Agreements and Alliance RFID Products) can be made without the prior written consent of the other Party. 

  

	8	Intellectual Property Rights Ownership 

  

	 	8.1	Background Technology. ST and ALIEN will each retain all rights, titles and interests in their respective Background Technology, including Intellectual Property Rights
therein. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
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 Each Project Agreement may specify each Party’s major items of Background Technology that are
used in conjunction with the specific Project. 
  

	 	8.2	Foreground Technology. Except as provided in Paragraph 8.3 below, to the extent that Foreground Technology does not constitute Joint Foreground Technology, each Party will
solely own all rights, titles and interests in its respective Foreground Technology, including Intellectual Property Rights therein. 

 Each Project Agreement may specify in detail the classification and ownership rights of the Foreground Technology developed in conjunction with the specific Project. 
 If either Party desires to file a patent or any other Intellectual Property Right based upon its Foreground Technology, it shall notify the other Party
prior to any filing of the proposed filing in reasonable detail. 
  

	 	8.3	Joint Foreground Technology. The Parties will jointly own all rights, titles and interests in the Joint Foreground Technology, including Intellectual Property Rights therein.

 Each Party shall have the undivided rights and equal interest to exploit such Joint Foreground Technology, including the
right to grant non-exclusive licenses, without restriction and without providing notice or accounting to the other Party. The Parties will cooperate with respect to patent and other Intellectual Property Rights applications and registrations,
maintenance protection and enforcement thereof, for Joint Foreground Technology. All Joint Foreground Technology to the extent constituting Confidential Information when the Joint Foreground Technology is made will be maintained confidential by both
Parties unless otherwise agreed in writing; all such Confidential Information in written or any other tangible form shall be marked “ST-ALIEN Confidential”. This shall not, however, prohibit either Party from exploiting such information,
including without limitation, incorporating the corresponding technology into products, or disclosing the information, in confidence, to third parties, subject to prior signature with any such third parties of a non-disclosure agreement containing
terms and conditions similar to those of the non-disclosure agreement attached in Exhibit A hereto. If either Party desires to file a patent or any other Intellectual Property Right based upon the Joint Foreground Technology, it shall notify the
other Party prior to any filing of the proposed filing in reasonable detail. The Parties shall share equitably the expenses associated with the first and further filings of patent applications of such Joint Foreground Technology as well as with the
maintenance of such applications and the patents granted thereon. However, in the event one of the Party elects not to seek or intends to 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
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abandon Intellectual Property Rights in respect to any such Joint Foreground Technology in any particular country or elects not to share equitably in the
expenses thereof with the other Party, that other Party shall have the right to apply for or maintain such Intellectual Property Rights at its own expense in such country and shall have full ownership and control over the prosecution, maintenance
and licensing thereof in accordance with the terms of this Agreement. The Party which has decided to abandon its involvement as aforesaid (and, in the case of ST, ST’s Affiliates) will be licensed to use or have used for its own purposes the
Joint Foreground Technology concerned provided this Party complies with the confidentiality obligations set out in Paragraph 7 to the extent the Joint Foreground Technology constitutes Confidential Information of the other Party. This license will
be a worldwide, royalty-free, fully paid up, personal, limited, non-exclusive, nontransferable, nonsublicensable, license to make, have made, use, import, offer to sell, and sell any products and item, and to practice any method or process under the
Joint Foreground Technology and to reproduce, distribute and create derivative works of, and otherwise exploit the Joint Foreground Technology. 
 For the avoidance of doubt, neither Party may file a patent or any other Intellectual Property Rights over the good faith and duly justified objection of the other if the patent discloses and would reveal Confidential Information of the
other Party. 
 Each Project Agreement may specify in detail the classification and ownership rights of the Joint Foreground Technology
developed in conjunction with the specific Project. 
  

	 	8.4	Cooperation for filing or prosecuting applications for patents. Each Party agrees that, without charge to the other Party, it will and will have its employees sign all papers
and do all acts which may be necessary, desirable or convenient to enable the filing Party at its expense to file and prosecute applications for patents on the Technology that is developed or conceived during work within the scope of and pursuant to
this Agreement or the relevant Project Agreement, and to maintain patents granted thereon. In addition, each Party agrees to acquire from its employees such assignments, rights and covenants to assure the other Party that it shall receive the rights
provided in this Paragraph 8. Employees of each Party performing the Development Program shall not collaborate with third parties in performing the Development Program without the other Party’s prior written consent 

 Ownership of Mask Works. Nothwithstanding any contrary provision in this Agreement, all Mask Works constitute ST Foreground Technology and shall be
the sole and exclusive property of ST including the exclusive rights to protect, register, prosecute and defend such Mask Works. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
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	9	Licenses 

  

	 	9.1	Licenses for performance of Project Agreements. Unless a Project Agreement specifies otherwise, each Party (“Licensor”) hereby grants the other Party (including in
the case of ST, ST’s Affiliates) (“Licensee”) a non-exclusive, personal, non-transferable, royalty free, worldwide license under Licensor’s Background and Foreground Technology (and Intellectual Property Rights therein) to the
extent necessary to carry out Licensee’s obligations under a specific Project Agreement entered into under this Alliance and only for the duration of the Project Agreement. 

 Each Party receiving Background or Foreground Technology from the other Party undertakes to keep such Technology strictly confidential in accordance with
the provisions of Paragraph 7 of this Agreement. 
  

	 	9.2	Licenses for exploitation of Technology developed under the Alliance. 

 In conjunction with Project Agreements, ALIEN agrees to grant irrevocable permission to ST and its Affiliates to sell or have sold the Alliance RFID Products to any third party customer. In order to give effect to the
foregoing, ALIEN will grant ST and its Affiliates, a worldwide, perpetual, royalty free, fully paid up, license under any ALIEN proprietary Technology (such as but not limited to ALIEN Background and Foreground Technology as defined herein but
excluding the NanoBlock Technology and FSA Technology unless specifically called for in a Project Agreement), including the Intellectual Property Rights therein to the extent necessary for ST and its Affiliates, to design, develop, have designed,
have developed, manufacture, have manufactured, commercialize (directly or through its distribution channel) to any third party the Alliance RFID Products. For the avoidance of doubt, ST and ALIEN will negotiate and execute Project Agreement(s)
reflecting the terms set forth in this Paragraph 9.2 (a). It is anticipated that such Project Agreement(s) will contain customary provisions in addition to, but consistent with, the terms set forth in this Alliance Agreement. 
  

	10	Effective Access to Background Technology 

  

	 	10.1	As a basic part of this Alliance, the Parties will jointly develop Alliance RFID Products based on certain ST process technology. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
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 The ST process technology required under each specific Project as well as the modalities of effective
transfer and support will be mutually determined by the Parties in the relevant Project Agreement. 
 ST will secure ALIEN’s timely
access to such mutually determined ST process technology subject to the terms and conditions of Paragraph 9.1 above. 
  

	 	10.2	As a basic part of this Alliance, the Parties will jointly develop Alliance RFID Products based on ALIEN know-how related to low-cost RFID products (IC, tags, and reader) which
operate according to the Auto-ID Center specifications and also related to their corresponding IC implementation and related to very low cost assembly process. 

 The aforementioned ALIEN know how required under each specific Project as well as the modalities of effective transfer and support will be mutually
determined by the Parties in the relevant Project Agreement. 
 ALIEN will secure ST’s timely access to such commonly determined ALIEN
know how subject to the terms and conditions of Paragraph 9.1 above. 
  

	11	Development Costs 

 The costs and expenses for all
design and development activities carried out pursuant to the Alliance and the payment terms and conditions thereof will be defined in each Project Agreement. 
  

	12	Manufacturing and Supply 

  

	 	12.1	Manufacturing for and supply to ALIEN. Any and all Alliance RFID Product shall be manufactured exclusively by ST or its Affiliates (either directly or through ST’s
subcontractors) and sold by ST to ALIEN pursuant to terms and conditions to be agreed upon in specific Project Agreements. The rules governing Alliance RFID Products discontinuance will be defined in the appropriate Project Agreements.

  

	 	12.2	Manufacturing for and supply to a third party. ST and its Affiliates may manufacture and sell, directly or indirectly, any and all Alliance RFID Product to third parties.

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
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	13	Term 

 This Agreement shall become effective as of
its signature by both Parties (the “Effective Date”) and expire on December 31, 2006 (the “Expiry Date”) unless earlier terminated in accordance with Paragraphs 14 or 15.7 below. 
  

	14	Termination 

  

	 	14.1	Events of termination of this Agreement. This Agreement may be terminated subject to thirty days (30 days) prior written notice, in the following cases:

  

	 	(a)	by either Party upon failure by the other Party to comply with any material obligation under this Agreement, provided that such failure has not been corrected or remedied within
thirty days (30 days) of a notice to that effect by the terminating Party. 

  

	 	(b)	by either Party, if a controlling interest of the voting stock of the other Party is acquired by, or if the other Party merges with, or if a majority of the assets of the other
Party is acquired by, a competitor or potential competitor of the terminating Party. 

 In addition, either Party may terminate
this Agreement without prior notice or formality: 
  

	 	(c)	if the other Party ceases its activities or becomes subject to a voluntary or involuntary petition in bankruptcy to the extent permitted by the applicable law.

  

	 	(d)	if the other Party materially breaches the confidentiality obligations contained herein. 

 Finally, Alien may terminate this Agreement without prior notice or formality: 
  

	 	(e)	if the Parties fail to execute two Agreements, namely, a Joint Development Agreement and Letter of Intent specifying at least the wafer price, allocation, and duration of a Wafer
Supply Agreement, by June 30, 2003. Neither Party shall have claims or actions whatever against the other Party, in particular for damages based upon a failure by such other Party to proceed to execution of aforementioned Project Agreements.

  

	 	14.2	Termination of Project Agreements. Termination of a Project Agreement does not terminate this Alliance Agreement. If this Alliance Agreement is terminated, the termination
provisions of each Project Agreement shall define the effect of such termination. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
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	 	14.3	Survival. All provisions of this Agreement that, by their nature, are intended to survive any termination or expiration of this Agreement will survive any such termination or
expiration. In particular, the confidentiality terms of Paragraphs 1 and 7 above as well as the provisions of Paragraphs 3, 4, 8, 9.2, 14, 15 and 16.2 will survive any termination or expiration of this Agreement. 

  

	 	14.4	Effect of Termination under Paragraph 14.1 (e). If the Alliance Agreement is terminated pursuant to Paragraph 14.1 (e), all activities currently underway shall cease. The Parties
shall return all Confidential Information of the other Party within five (5) business days of this termination. The Parties shall have no other obligations or liability to each other as a result of such termination. 

  

	15	Limited Warranty and Liability 

  

	 	15.1	Both ALIEN and ST warrant that: 

  

	 	(a)	each has the right to disclose to each other or use, without liability to others, all subject matter, including ideas, inventions whether patented or not, creations, works,
processes, designs and methods that one party will disclose or use in its performance of this Agreement; 

  

	 	(b)	each has the full power to enter into this Agreement, and to carry out its obligations under this Agreement; 

 NO WARRANTIES OR REPRESENTATIONS, WHETHER EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, INCLUDING BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF
MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE, ARE GIVEN by ST for samples and prototypes delivered to ALIEN under a Project. ST shall not be liable for any damages resulting from any use or application of such samples and
prototypes made by ALIEN. Once Alliance RFID Products are qualified by ST and ALIEN and volume production is launched, ST and/or its Affiliates will supply the Alliance RFID Products under the terms and conditions of the appropriate supply
Agreement. 
  

	 	15.2	 EXCEPT IN THE EVENT OF GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR BREACH OF THE CONFIDENTIALITY OBLIGATION SET OUT IN PARAGRAPH 7 HEREIN, NEITHER PARTY 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
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SHALL HAVE ANY LIABILITY TO THE OTHER PARTY, ITS SUBCONTRACTORS, CLIENTS OR ANY THIRD PARTY FOR COSTS OF SUBSTITUTE PRODUCT(S) OR SERVICES, OR FOR
INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION SUCH DAMAGES OR LIABILITIES FOR LOSS OF REVENUE, LOSS OF BUSINESS, FOR FRUSTRATION OF ECONOMIC OR BUSINESS EXPECTATIONS, LOSS OF PROFITS, LOSS OF DATA, OR
COST OF CAPITAL, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), WARRANTY OR OTHERWISE, ARISING IN ANY WAY OUT OF OR RELATING TO THIS AGREEMENT OR UNDER ANY PROJECT AGREEMENTS, EVEN IF ANY REPRESENTATIVE OF A PARTY HERETO HAD BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. 

  

	 	15.3	EXCEPT IN THE EVENT OF GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR BREACH OF CONFIDENTIALITY OBLIGATIONS SET OUT IN PARAGRAPH 7 HEREIN TOTAL CUMULATIVE LIABILITY ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR UNDER A DEVELOPMENT AGREEMENT, WHETHER IN CONTRACT, IN TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, WILL NOT EXCEED 1,000 USD (ONE THOUSAND US DOLLARS) FOR EITHER PARTY. 

 For the avoidance of doubt, supply agreements that the Parties may enter into, from time to time, pursuant to the Alliance for the sales and purchase of
fully qualified Alliance RFID Products will be governed by the limitation of liability clauses set out in such sales agreements and will not be subject to the limited liability provision contained in this Paragraph 15.3. 
  

	 	15.4	NEITHER PARTY MAKES ANY WARRANTY OF NON-INFRINGEMENT OF INTELLECTUAL PROPERTY WITH RESPECT TO THE ST OR ALIEN IP RIGHTS. 

  

	16	General Terms 

  

	 	16.1	Copyright Notices - Markings. Unless stated otherwise in this Agreement, each Party will ensure that all copyright notices that are marked on or included in any portion of
information, software or documentation, in any form, that is furnished to that Party under this Agreement will be marked on or included at least once in each copy made by or for that Party. 

 In order to protect the rights of the other Party, each Party agrees not to remove or delete any proprietary or confidential legend or marking of the

  

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other Party, on any information or item transferred to it by the other Party, and any copy or derivative work of such item or information. 
  

	 	16.2	Dispute Resolution. 

 16.2.1 The Alliance
Coordinator from each Party will negotiate in good faith to resolve any dispute between them regarding this Agreement. If such negotiations do not resolve the dispute to the satisfaction of both Parties then the resolution process will be escalated
to the Executive Committee. The Executive Committee shall meet at least once in an attempt to resolve the dispute. This meeting is a required prerequisite before either Party may seek resolution of the dispute through arbitration pursuant to
Paragraph 16.2.2 below. The Parties may agree to pursue any other additional mutually acceptable dispute resolution method but such pursuit will not modify the above-stated prerequisite. 
 16.2.2 Any dispute that cannot be amicably solved pursuant to the provisions of Paragraph 16.2.1 above shall be finally settled under the Rules of
Conciliation and Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules. All arbitrator(s) appointed must have knowledge by education or experience of the manufacture and
distribution of semiconductors. Such arbitration shall take place in Geneva if initiated by ALIEN and in San José if initiated by ST and shall be conducted in English. Swiss Law shall be applicable without reference to its conflict of laws
principles. 
 16.2.3 Notwithstanding any other statement in this Paragraph 15.2, either Party may seek immediate injunctive or other relief
related to the breach of the confidentiality obligation stated in Paragraph 7 above. 
  

	 	16.3	Employees. Each Party will remain responsible (e.g., with regard to salaries, expenses, transportation, housing, taxes, workers compensation, performance evaluations) for its
own employees while they are present at the other Party’s facility. Each Party’s employees will remain employees of that Party while they are present at the other Party’s facility and will not be considered to be employees,
contractors, agents, or the like, of the other Party. A Party’s employees will conduct themselves in a professional manner while present at the other Party’s facility and will comply with the other Party’s reasonable management
procedures. The other Party will provide the visiting employees with reasonable desk space, office facilities and office support. A Party may remove and restrict from its premises an individual who does not comply with the provisions of this
Agreement. 

  

	 	16.4	 Entire Agreement. This Agreement sets forth the entire agreement and understanding between the Parties as to its subject matter and merges all prior
discussions between them. Neither of the Parties will be bound by 

  

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any conditions, definitions, warranties, understandings, agreements, or representations, whether written or oral, with respect to such subject matter other
than as expressly provided in this Agreement or as duly set forth on or subsequent to the effective date of this Agreement in writing and signed by a duly authorized representative of each Party. 

  

	 	16.5	Execution And Modification. Execution of this Agreement will be by signature of an authorized representative of each Party. This Agreement may only be modified in a writing
executed by authorized representatives of both Parties. 

  

	 	16.6	Export Restrictions. Each Party will comply, at its own expense, with all applicable federal, state and local laws, regulations and ordinances including, but not limited to,
the regulations of the U.S. Government relating to export and re-export of any (a) software or technology that is provided or licensed under this Agreement, or any (b) technical information, or direct product of such technical information,
that is provided by the other Party under this Agreement, or any (c) product that is provided under this Agreement. The purchaser of any product provided under this Agreement agrees that it is responsible for obtaining required government
documents and approvals prior to export and re-export of any commodity, machine, software or technical data. In addition, the purchaser of any product provided under this Agreement warrants that such products are not for space or missile use, and do
not relate to radiation hardened design, circuitry, manufacturing or testing. 

  

	 	16.7	Force Majeure. Neither Party will be liable in damages or have the right to cancel or terminate this Agreement, in whole or in part, for any delay or default in performance
hereunder if such delay or default is caused by unforeseen conditions or conditions beyond the control of the delaying or defaulting Party (including but not limited to acts of God, terrorism, government restrictions, continuing domestic or
international problems such as wars or insurrections, strikes, fires, floods, work stoppages and embargoes). Either Party will have the right to terminate this Agreement upon sixty (60) days prior written notice if the delay or default of the
other Party due to any such cause continues for a period of six (6) months. Each Party will give the other prompt written notice of any such condition likely to cause any delay or default. 

  

	 	16.8	Non-exclusive cooperation. This Agreement will not prevent either Party from (a) entering into an agreement similar to it with any third party or (b) developing,
manufacturing and/or selling any product or service which can compete with the other Party’s products or services in the marketplace, or with the products developed by the Parties under this Agreement. 

  

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	 	16.9	No right to subcontract 

 Neither Party may
subcontract the performance of the whole or any part of the work assigned to it under a specific development Project without the other Party’s prior written consent, except in the case of ST to any of its Affiliates. 
 Should the performance of either Party’s development work or part thereof be subcontracted to any third party according to the aforementioned
provisions, that Party (i) shall remain fully liable for the performance of the work; and (ii) shall ensure that subcontractor is bound by confidentiality obligations similar to those contained in Paragraph 7 herein. 
 Notwithstanding the foregoing, ST may freely subcontract the generation of Mask Works to any third party of its choice. 
  

	 	16.9	Headings. The paragraph headings used in this Agreement are for convenience of reference only. They will not limit or extend the meaning of any provision of this Agreement,
and will not be relevant in interpreting any provision of this Agreement. 

  

	 	16.10	 Independent Contractors. Each Party’s efforts in relation to this Agreement will be as an independent contractor. Nothing contained in this Agreement will
constitute the Parties entering upon a join venture or partnership, or will constitute either Party the agent for the other Party for any purpose or in any sense whatsoever. 

  

	 	16.11	 Language. All documents and information provided under this Agreement, and correspondence between the Parties, will be in the English language.

  

	 	16.12	 Notices. The addresses for notices will be the addresses for the Agreement Coordinators as specified in Paragraph 5.3 above. All notices that are required or permitted
to be given under this Agreement will be in writing. Notices will be validly given upon the earlier of confirmed receipt by the recipient’s Agreement Coordinator or seven (7) days after dispatch by registered mail, postage prepaid, in any
post office in the United States (for ALIEN) or France or Switzerland (for ST) addressed to the other party’s Agreement Coordinator. Notices may be delivered by telefax or by courier and will be validly given upon confirmed receipt by the
recipient’s Agreement Coordinator. 

  

	 	16.13	 Severability. If any provision of this Agreement is for any reason found to be ineffective, unenforceable or illegal, such condition will not affect the validity or
enforceability of any of the remaining portions of this Agreement. The Parties will negotiate in good faith to replace any ineffective, unenforceable or illegal provision with an effective replacement as soon as is practical.

  

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	 	16.14	 Trademark Usage. Nothing in this Agreement will imply the grant to a Party of a license to use any trademark or service mark of the other Party or any mark that is
confusingly similar to a name or mark used by the other Party. Such a grant may only be made by explicit statement in this Agreement. 

  

	 	16.15	 Assignment. Neither Party may transfer or assign this Agreement, whether by operation of law or otherwise, without the prior written consent of the other Party and any
attempt to do so without such consent will be void. This Agreement will bind and inure to the benefit of the Parties and their respective permitted successors and permitted assigns. 

  

	 	16.15	 Waiver. The waiver of any term, condition, or provision of this Agreement by either Party must be in writing. No such waiver will be construed as a waiver of any other
term, condition, or provision except as provided in writing, nor as a waiver of any subsequent breach of the same term, condition, or provision. 

 IN WITNESS WHEREOF, each Party has executed this Agreement by signature of its authorized representative. 
  

									
	ALIEN Technology Corporation	 		 	STMicroelectronics NV
					
	By:	 	 /S/    STAV PRODROMOU
	 		 	 By:
	 	 /S/    CARLO
BOZOTTI

					
	Name:	 	 Stav Prodromou
	 		 	 Name:
	 	 Carlo Bozotti

					
	Title:	 	 Chief Executive Officer
	 		 	 Title:
	 	 Corporate V.P.

					
	Date:	 	 June 16, 2003
	 		 	 Date:
	 	 July 4, 2003

  

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 JOINT DEVELOPMENT AGREEMENT 
 This Joint Development Agreement (“Agreement”) is entered into by and between Alien Technology Corporation (“Alien”), a California corporation with a place of business at 18220
Butterfield Boulevard, Morgan Hill, California, 95037 and STMicroelectronics N.V., a Dutch corporation, with its registered office at WTC Schiphol Airport, Schiphol Boulevard 265, 1118 BH Schiphol Airport, Amsterdam, The Netherlands, acting through
its Swiss Branch located at 39, Chemin du Champ des Filles, 1228 Plan-les-Ouates, Geneva, Switzerland, on behalf of itself and its Affiliates. 
 RECITALS 
 Whereas: 
  

	 	A.	ALIEN and ST have signed an Alliance Agreement dated June 16, 2003 to address the foundation of the cooperation between the two companies, establishing the fields of activity,
the value added brought in by each partner, the “modus operandi” in terms of developing the RFID based solutions for the AutoId Center standards, as well as the specific terms and conditions of mutual support in terms of market presence,
joint development, joint or coordinated subassembly and/or solution manufacturing. 

  

	 	B.	ST and Alien desire to enter into an agreement setting forth their respective rights and obligations to design and manufacture an IC that will operate according to the Auto-ID
Center Specification. 

 AGREEMENT 
 NOW, THEREFORE, the parties agree as follows: 
 1. Definitions. In this Agreement, the
following words and expressions shall have the following meanings: 
 1.1 “Alien Specification” means the specific
product performance guidelines provided by Alien and included in Exhibit A. The Exhibit A will be agreed between the parties at project start and attached hereto. 
 1.2 “Alien Technology” means any and all Technology that Alien contributes to the development of the Class 1 IC. 
 1.3 “Auto-ID Center Specification” means the Auto-ID Center’s EPC Class 1 Specification 1.0 for a system operating at UHF,
with additional clarifications and enhancements provided by Alien, detailed in Exhibit A. This will include future extensions and revisions of this Auto-ID Center Specification that may arise during the Development Program by the Center or its

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 
successor organizations. The Exhibit A will be agreed between the parties at project start and attached hereto. 
 1.4 “Class 1 IC,” means integrated circuit(s) that, when properly attached to an appropriate antenna in a radio frequency inlet
or tag, operate according to the Specification. 
 1.5 “Development Program” means Phase I and Phase II
collectively. 
 1.6 “Flip-Chip Process” means the process for assembling RF Tags whereby bumped, sawn ICs are
picked from a wafer and placed and adhered onto a tag antenna. 
 1.7 “FSA Technology” means the materials,
equipment and processes required to perform Alien’s “Fluidic Self Assembly” approach to placing shaped integrated circuits, called NanoBlockTM ICs, into rolls of plastic film and forming interconnects to those ICs, to the extent
constituting Alien Background Technology. 
 1.8 “Intellectual Property Rights” means (a) all Patent Rights,
(b) all United States and foreign semiconductor mask work rights and registrations for such rights, and (c) all copyright rights and all other literary property and author rights, whether or not copyrightable, and all copyrights and
copyrighted interests, including any renewals thereof, and (d) rights relating to the protection of trade secrets and confidential information, and (e) any right analogous to those set forth herein and any proprietary rights relating to
intangible property. 
 1.9 “Joint Development” is defined in Section 5.3 below. 
 1.10 “NanoBlock Technology” means Alien NanoBlockTM IC specifications and formation process, irrespective of the assembly
technology used to convert the chip into the RF Tag, to the extent constituting Alien Background Technology. 
 1.11
“Patent Rights” means all United States and foreign patent and application for patent, industrial models, industrial designs, utility models, certificates of invention, and other indicia of invention ownership, including any such rights
granted upon reissue, division, continuation or continuation-in-part applications. 
 1.12 “Phase I” means that
portion of joint development contemplated under this Agreement and described in detail in Sections 2.1, 2.2, 3, and Exhibit B. 
 1.13 “Phase II” means that portion of joint development contemplated under this Agreement and described in Section 2.3. 
 1.14 “Qualification” means the written agreement between the parties for production release of a Class 1 IC as provided for in Exhibit B. 
 1.15 “RF Tag” means a Class 1 IC with electrical connection to an antenna and packaged to enable its use as a radio frequency
identification device. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
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 2 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 1.16 “Specifications” means both the Auto-ID Center Specification and the
Alien Specification. 
 1.17 “Supply Agreement” means the agreement referenced in Section 4. 
 1.18 “ST Technology” means any and all Technology that ST contributes to the development of the Class 1 IC. 
 1.19 “Technology” means developments, ideas, designs, inventions, information, know-how, technology, both tangible and
intangible, and Intellectual Property Rights. 
 All other capitalized terms used herein and not defined shall have the same
meaning as in the Alliance Agreement. 
 2. Project Phases 
 2.1 Project Phases. The development activities hereunder are divided into two project phases (Phase I and Phase II). The project
phases are directed to the ultimate goal of jointly developing a commercially acceptable Class 1 IC. The objectives and project plan of Phase I are described in detail below and in the Exhibits hereto. The specific objectives and project plans of
Phase II are to be developed and formally defined by the parties during the term of this Agreement, following Phase I. 
 2.2
Phase I. The overall objective of Phase I is to develop a Class 1 IC in accordance with the performance specifications shown in Exhibit A. The work plan of Phase I is set forth in detail in Exhibit B. The goal of the work plan is to develop a
low-cost Class 1 IC that is ready for production releases mentioned in Exhibit B. This IC shall be designed and the initial mask sets developed for assembly in both a Flip-chip and by a Fluidic Self-Assembly Process. 
 2.3 Phase II. The general goals of Phase II are to develop an improved Class 1 IC with higher performance and reduced manufacturing
costs compared to the IC developed in Phase I. The estimated target date for commercial availability of this IC is the beginning of 2006. This IC shall be designed as a NanoBlock IC, and the initial mask sets developed for assembly in both a
flip-chip and by a Fluidic Self-Assembly Process. During Phase 1, the parties intend to plan and formally to define the objectives and project plans of Phase II following the completion of Phase I. In the parties’ proposals for Phase II the
areas of responsibility of the parties will continue to be defined by the tasks outlined in Exhibit B, unless both parties agree to an amendment of Exhibit B. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 3 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 3. Development Program: Phase I and Additional Activities 
 3.1 Each party shall use diligent efforts to carry out, in the case of Alien, the Alien responsibilities and, in the case of ST, the ST
responsibilities, in accordance with Exhibit B (including without limitation the time schedule therein), as it may be updated by mutual written agreement of the parties from time to time. Each party agrees to commit sufficient resources
reasonably calculated to make the program a success. 
 3.2 Each party will bear its own operating costs for the Development
Program. ST shall bear the cost of all mask sets and prototype lots for Phase I and Phase II wafers supporting flip-chip version, while Alien shall bear the cost of all mask sets and prototype lots for Phase I and Phase II wafers supporting FSA
version. Alien shall loan one reader with appropriate software and hardware compliant to the latest Auto-ID Center v. 1.0 specification to ST free of charge for purposes of development and product testing. Alien will provide periodic software
updates for this hardware as they become available at Alien. This reader will be returned to Alien at the termination of the Agreement. Alien represents and warrants that it owns, leases or has a valid license to use and sublicense such reader and
the accompanying hardware and software. 
 Throughout the Development Program, ST and Alien agree to make a sufficient number of their appropriately skilled
employees reasonably available to carry out the programs in accordance with Exhibit B. Alien and ST further agree to make a sufficient number of their employees reasonably available at their respective program sites, as appropriate, to consult with
and assist each other on issues arising from work performed in connection with the programs, including, without limitation, product design, technical performance, manufacturing process, manufacturing costs, and related issues. Neither party will
allow any non-employees to perform work on this program without prior approval by the other party. 
 3.3 The primary
technical activities of Phase I are set forth in Exhibit B. Alien agrees to assist ST and ST agrees to assist Alien as set forth in this Agreement and in Exhibit B to achieve the goals of the programs according to the time schedule set forth in
Exhibit B. Each party shall perform each Task for which it has Responsibility under Exhibit B and provide the relevant Deliverable to the other party in the required Format upon completion of the Task by the party but in no event later than the time
schedule permits for Completion of that Task (all capitalized terms in this sentence refer to headings in Exhibit B). The parties shall share responsibility for the tasks where both are shown to be responsible in Exhibit B. It is understood that the
focus of the collaboration and this Agreement is the joint development activities, but that parallel Alien and ST activities are required for the success of the program. Therefore it is expected that both parties will cooperate with respect to the
other’s activities where they are able to do so. 
 3.4 ST will be free to choose the ST locations at which to perform
its responsibilities under this Agreement. Alien will be free to choose the Alien locations at which to perform its responsibilities under this Agreement. Each party shall ensure that all of its personnel, while on the site of the other party, shall
abide by the then current procedures and regulations applicable to independent contractors performing services on such site, and all other reasonable safety, security 

  

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 4 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 
and other instructions and directions issued by the party whose site is being visited, as well as all applicable federal, state and local laws and
regulations. 
 3.5 The following persons shall be appointed Development Program Managers to direct the overall conduct of the
parties and of the development activities described in Exhibit B: 
  

	 	(a)	For ST: 

 Jean-Marie Gaultier 
 Contactless Memories Design Manager 
 STMicroelectronics 
 Zone Industrielle de Rousset 
 13106 Rousset cedex - France 
 E-mail : jean-marie.gaultier@st.com 
  

	 	(b)	For Alien: 

 James Atherton 
 Vice President, IC Engineering 
 Alien
Technology Corp. 
 18220 Butterfield Boulevard 
 Morgan Hill, CA 95037 
 E-mail: jatherton@alientechnology.com 
 The Development Program Managers shall have the authority to mutually approve in writing changes to Exhibit B or changes as detailed in Section 3.6, including
Specifications, scope of work, major milestones, and compensation, for the program within their responsibility as defined above. The Development Program Managers cannot otherwise amend this Agreement. Upon notice to the other party, either party may
substitute a different Development Program Manager of appropriate managerial rank and scope. 
 3.6 If either party proposes
changes to the Development Program then it shall notify the other party’s Development Program Manager in writing of such proposal and the reasons for such proposal. Such a proposal may include, for example, changes to the Specifications or
requirement for system performance or cost; the deferral of one or more of deadlines; and the adjustment of milestones. The other party will give each such proposal its prompt attention. ST (in the case of a proposed change to any of its areas of
primary or shared responsibility) or Alien (in the case of a proposed change to any of its areas of primary or shared responsibility) will promptly state in writing what effect, if any, such change will have on the milestones/time frame, and other
provisions of the affected program. If any such change is agreed by ST and Alien, the change shall be evidenced by a written confirmation signed by the Development Managers of both parties. Such a written confirmation shall amend the terms of
Exhibits A and/or B as appropriate. In such cases where the change is driven by forces outside the agreement, for example changes to the Auto-ID Center Specification, such changes may not be unreasonably withheld. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
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 5 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 3.7 If the Development Program Managers disagree on any proposed changes to Exhibit B
or the Development Program, or if there is any Task in Exhibit B that is not completed by the Completion date, or if there is any other disagreement under this Section 3, the Development Program Managers shall meet in person or by some other
means such as teleconference to discuss the issue within 5 business days of receiving a request for such a meeting by a Development Program Manager. If the Development Program Managers are unable to find a mutually agreeable resolution, either
Development Program Manager may refer the matter to Stav Prodromou of Alien and Claude Dardanne of ST (or equivalent management personnel), who shall promptly meet and endeavor in good faith to resolve the matter in a timely manner. This section in
no way limits or restricts the remedies of the parties under other parts of this Agreement, including without limitation Section 10 (Termination). 
 3.8 The Development Program Managers and other project representatives of ST and Alien as appropriate shall meet weekly by teleconference to review the progress of Phase I. 
 3.9 The Development Managers shall coordinate and attend additional teleconference meetings to occur at least on a monthly basis that
include relevant senior management of the parties to review marketing plans, and to manage other necessary business and technology matters, and to formulate the goals and work plans of Phase II. To facilitate these planning discussions, ST and Alien
shall exchange confidential market research information, technical feasibility evaluations, RFID systems integration analyses, and other information germane to this planning. Notwithstanding the marking requirements of Section 7.1 of the
Non-Disclosure Agreement dated June 16, 2003 between STMicroelectronics SA (an Affiliate of STNV) and Alien, all information relating to processes exchanged under this Section 3.9 shall be deemed Confidential Information for purposes of
this Agreement whether or not marked “Confidential.” 
 To ensure that the Specifications continue to develop in a manner consistent with the
interests of the parties, both parties shall allocate reasonable resources throughout the term of this Agreement to support relevant working groups or development activities at the Auto-ID Center and/or its successor organizations. 
 4. Supply of ST Product to Alien 
 The manufacture, sale and distribution of Class 1 ICs that have successfully completed Qualification shall be governed by the terms and conditions of a separate Supply Agreement executed between the parties. 
 5. Applicable Provisions of Alliance Agreement 
 The provisions of Sections 8 (Intellectual Property Rights Ownership), 9 (Licenses), 15 (Limited Warranty and Liability), and 16 (General Terms) also apply to and govern this Agreement. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
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 6 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 6. ST Technology; Alien Technology 
 In addition to the provisions set forth in Section 8 of the Alliance Agreement, the Parties hereby agree that ST owns all ST Technology as more
specifically set forth in Exhibit C, and Alien owns all Alien Technology as more specifically set forth in Exhibit D. 
 7. Term and
Termination 
 7.1 This Agreement shall become effective as of the date of its signature by both Parties (the
“Effective Date”) and shall remain in existence unless otherwise terminated as provided in this Section 7. 
 7.2 Either party may terminate this Agreement (i) after six (6) months have elapsed from the date set forth in the work plan in Exhibit B for completion of a low-cost Class 1 IC for Phase I, if, after using reasonable commercial
efforts to design and develop a Class 1 IC the Parties are unable to Qualify a final Class 1 IC for Phase I, or (ii), after the Parties Qualify a Class 1 IC for Phase I, but before the start of Phase II, or (iii) after six (6) months have
elapsed from the date set forth in the work plan in Exhibit B for completion of a low-cost Class 1 IC for Phase II if, after using reasonable commercial efforts to design and develop the Class 1 IC, the Parties are unable to Qualify a Class 1 IC for
Phase II. 
 7.3 In addition, this Agreement may be terminated subject to thirty (30) days prior written notice, in the
following cases: 
 (a) by either Party upon failure by the other Party to comply with any material obligation under this
Agreement, provided that such failure has not been corrected or remedied within thirty (30) days of a notice to that effect by the terminating Party. 
 (b) by either Party, if a controlling interest of the voting stock of the other Party is acquired by, or if the other Party merges with, or if a majority of the assets of the other Party is acquired by, a direct
competitor of the terminating Party. 
 In addition, either Party may terminate this Agreement without prior notice or
formality: 
 (c) if the other Party ceases its activities or becomes subject to a voluntary or involuntary petition in
bankruptcy to the extent permitted by the applicable law: 
 (d) if the other Party materially breaches the confidentiality
obligations contained herein . 
 7.4 Upon expiration or termination of this Agreement for any reason each Party shall return
to the other party all Confidential Information of the other Party that was provided by the other Party to such Party during the course of this Agreement. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 7 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 7.5 The provisions of Sections 1, 6 and 8 of this Agreement and Sections 8, 9.2, 15
and 16.2 of the Alliance Agreement will survive any expiration or termination of this Agreement. 
 8. Confidentiality 
 The terms and conditions of the Non-Disclosure Agreement dated June 16, 2003 between STMicroelectronics SA (an Affiliate of STNV) and Alien shall
apply to and govern this Agreement. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates set forth below
effective as of the Effective Date. 
  

									
	 ALIEN TECHNOLOGY CORPORATION
	 		 	STMICROELECTRONICS N.V.
					
	By:	 	  	 		 	 By:
	 	  
					
	Name:	 	  	 		 	 Name:
	 	  
					
	Title:	 	  	 		 	 Title:
	 	  
					
	Date:	 	  	 		 	 Date:
	 	  

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 8 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT A 
 Article 1: Auto-ID Center Specification 
 Technical Report: Auto-ID Center Candidate Recommendation,
Version 1.0.1 
 “860MHz – 930MHz Class I Radio Frequency Identification Tag Radio 
 Frequency & Logical Communication Interface Specification” 
 Article 2: Alien Specification 
 “Operational Specification for a Radio Frequency Identification (RFID) System” 
 Part I. Class 1
Devices 
 MIT Auto-ID Center Cheap Chip Action Group (CCAG) 
 November 2002 
 Article 3: Lepton IC Specification 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT B 
 Phase I Tasks and Deliverables / Target schedule 
 To = April 2003 
 Digital design / Alien = Week17 
 Analog design / Alien = July 14th,
2003 
 EEPROM design / ST = July 14th, 2003 
 Mask
assembly / ST = July 31st (If E2test protocol deliver W28 and all layout blocks checked in ALIEN before to be deliver on 15th July ) 
 Companion chip UHF / ST = July 14th, 2003 
 Companion chip 1/2 Alien = July 14th, 2003 
 Companion E2prom Alien/ST = July 14th, 2003 (If E2test protocol deliver W28) 
 Companion analog /ST = July 14th, 2003 
 TEG F6S40 / UHF = July 14th, 2003 
 Reticule assembly / ST = July 31st 
 Final checks and PG Tape /
ST & ALIEN = July 31st, 2003 
 Mask making / ST = August 20th, 2003 
 Cut 1.0 wafers out = Sept.19th, 2003 (rush) 
 First inlay samples / Alien & ST = Oct.10th, 2003 
 Characterization Cut1.0 Alien & ST = Oct. 31st, 2003 
 Preliminary
reliability test / ST = Oct 31st, 2003 
 Cut 1.1 PG Tape Alien / ST = Nov.28th 2003 
 Cut 1.1 wafers out / ST = Jan.15th, 2003 
 Final characterization Alien/ST = Feb. 27th, 2004 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -2- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 Final reliability tests ST = Feb 27th, 2004 
 Silicon acceptance ready for production Alien/ST = Feb.27th, 2004 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -3- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT C 
 ST Technology 
 Silicon wafer processes / recipes 
 Design rules manual 
 Spice models to related technology 
 EEPROM design and layout implementation 
 Masks assembly techniques / design rules 
 Design Kit to related technology 
 Shottkey design / technology
implementation 
 High frequency capacitance design and process implementation 
 Electrical wafer sort programs 
 Final test programs 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -4- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT D 
 Alien Technology 
 Class I UHF Auto ID Center compliant digital designClass I UHF Auto ID Center compliant RF/analog design
and layout implementation 
 Test methodology, programs and hardware for Class I Auto ID compliant ICs operating at UHF and microwave frequencies (wafer sort
and product final test) 
 Bit stream generation software for Class I Auto ID compliant reader/tag systems 
 Test bench software for Class I Auto ID compliant reader/tag systems 
 Schottky diode layout implementation 
 High frequency capacitor layout implementation 
 Electrostatic discharge protection design and layout implementation 
 NanoBlock ICTM design rules 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -5- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXCLUSIVE SUPPLY AGREEMENT FOR WAFERS 
 This Exclusive Supply Agreement for Wafers (“Agreement”) is made as of August 29, 2003 (“Effective Date”) by and between Alien Technology
Corporation (“ALIEN”), a California corporation having its principal place of business at 18220 Butterfield Boulevard, Morgan Hill, California, 95037 and STMicroelectronics, Inc. and its Affiliates, a Delaware corporation having its
principal place of business at 1310 Electronics Drive, Carrollton, Texas 75006 (“ST”). 
 RECITALS 
  

	 	A.	ALIEN and ST have entered into an Alliance Agreement dated June 16, 2003 to address the foundation of cooperation between the two parties. 

  

	 	B.	ALIEN and ST have entered into a Joint Development Agreement effective as of August 29, 2003 (“JDA”) to jointly design and develop Class 1 ICs.

  

	 	C.	The parties desire to enter into an agreement to define the terms and conditions under which ST will manufacture and supply to ALIEN and to third parties, and ALIEN will purchase
Wafers exclusively from ST. 

 ARTICLE 1 - DEFINITIONS 
 “ALIEN Specification” means the specific product performance guidelines provided by ALIEN and included in Exhibit A, as amended from time to time by mutual agreement. 
 “Auto-ID Center Specification” means the Auto-ID Center’s EPC Class 1 Specification 1.0.1 for a system operating at UHF, as amended from time to time,
with additional clarifications and enhancements provided by ALIEN, currently detailed in Exhibit A. This will include future extensions and revisions of this Auto-ID Center Specification. 
 “Class 1 ICs” means integrated circuits that, when properly attached to an appropriate antenna in a radio frequency inlet or tag, operate according to the
Specifications. 
 “Contract of Sale” means an Order accepted by ST. 
 “Conventional Wafer” shall mean an Alliance RFID Product that is a semiconductor wafer having a diameter of 150 millimeters, comprised of die or dice not
suitable for the FSA Technology manufactured by ST using the Manufacturing Processes and based upon the Specifications, for sale and shipment by ST. 
 “Customer” means ALIEN. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 1 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 “Cycle Time” shall mean the time between Lot start defined in the Order and the Wafers out, currently set
at 12 weeks. ST will evaluate Cycle Time on a yearly basis or upon significant semiconductor market changes, and may revise Cycle Time to reflect changes indicated in ST planning tools for the relevant process technology. 
 “Designs” shall mean all designs, test tapes, GDSII data base tapes, data, and information owned by Customer and relating to the manufacture of Wafers and
required by ST to enable ST to set up any of the Processes and to manufacture the Wafers. 
 “Facility” means the
existing 6” wafer fabrication plant located at Rousset, France. 
 “Lot” shall mean a group of Wafers not to exceed twenty-five (25) in
number that are uniquely identified and tracked through the fabrication Process. 
 “Manufacturing Processes”
shall mean the manufacturing processes used at the Facility. 
 “Misprocessing” shall mean a confirmed deviation from the manufacturing flow that
would result in the Wafers not meeting the T84 Specifications attached hereto as Exhibit D, as amended from time to time. 
 “NanoBlock
Wafer” shall mean an Alliance RFID Product that is a semiconductor wafer having a diameter of 150 millimeters, comprised of die or dice suitable for the Alien Fluidic Self Assembly process manufactured by ST using the Manufacturing Processes
and based upon the Specifications, for sale and shipment by ST to Customer. 
 “Orders” shall mean the purchase orders for Wafers placed by
Customer for ST from time to time. 
 “Process Specification” shall mean the ST documentation describing the manufacturing flow, and the process
steps within the manufacturing flow, of the Manufacturing Processes used by ST to manufacture the Wafers. 
 “Product” means an integrated circuit
that is an Alliance RFID Product or that integrated circuit assembled into an RF Tag not using FSA Technology. 
 “Qualification” shall mean the
execution by both Parties of a specific document confirming that each Class 1 IC is successfully qualified. Qualification of the initial Class 1 IC is set forth in Section 1.15 of the Joint Development Agreement dated August 29, 2003.

 “Qualification Date” shall mean the date of execution of the Qualification documents. 
 “RF Tag” means a Class 1 IC with electrical connection to an antenna and packaged to enable its use as a radio frequency identification device. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 2 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 “Risk Production Orders” means the purchase orders for Wafers placed by Customer and accepted by ST prior
to the Qualification Date. 
 “Specifications” means both the Auto-ID Center Specification and the ALIEN Specification, as amended by mutual
agreement, as currently set forth in Exhibit A of this Agreement. 
 “Wafers” means Conventional Wafers and/or NanoBlock Wafers.

 All other capitalized terms used herein and not defined shall have the same meaning as in the Alliance Agreement. 
 ARTICLE 2 – QUALIFICATION OF CLASS 1 ICS AND ACCEPTANCE OF WAFERS 
 2.1 Customer’s confirmation that each of the Alliance RFID Products is successfully Qualified shall be evidenced by a document signed by both Parties. 
 2.2 Subject to Section 2.3 below, starting from the Qualification Date Customer will start placing Orders with ST for quantities of Wafers in accordance with this
Agreement. 
 2.3 Customer reserves the right to place Risk Production Orders for the Wafers until the Qualification of each Class 1 IC is completed in
accordance with Section 2.1 above. In the event of Misprocessing of the Wafer encompassed by an accepted Risk Production Order, ST shall replace the Wafers affected by such Misprocessing at its cost. If ST manufactured the Wafers encompassed by
an accepted Risk Production Order in accordance with the applicable Process Specification, Customer shall be required to purchase such Wafers from ST. 
 NO
WARRANTIES, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE GIVEN FOR THE RISK PRODUCTION ORDERS DELIVERED HEREUNDER. 
 2.4 Wafers manufactured under the Manufacturing Processes and delivered by ST shall be subject to incoming inspection and testing in accordance with the acceptance
criteria set forth in Exhibit B hereto. If ALIEN finds that any Wafer fails such inspection or test, ALIEN has the right to reject such Wafer in writing within thirty (30) days after delivery and return such lot to ST, at
ST’s expense, and ST will repair or replace such defective Wafer at no charge to ALIEN. 
 2.5 In order to achieve Qualification at ST, a minimum of
[***] yield per wafer must be achieved. The parties agree to apply best efforts to achieve this minimum level, and then to continually improve yield. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 3 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 2.6 ST agrees to use best efforts to achieve the Street Oxide Thickness Measurements (Average Thickness of [***] and
Thickness Uniformity [***]) described in Exhibit B, by no later than December 30, 2003. 
 ARTICLE 3 - PROTOTYPING 
 3.1 ST will perform the final chip layout and assembly. ST will provide to ALIEN the GDSII tape excluding the EEProm portion of such tape. ST is the owner of the GDSII
tape. 
 3.2 The prices for prototype Wafers to be manufactured by ST shall be two times the prices for wafers set forth in Exhibit C hereto.
Should prototype wafers be provided before 4Q03, the price for 4Q03 shall apply. 
 3.3 ST shall use reasonable commercial efforts to manufacture prototype
Wafers on a RUSH basis, with Cycle Time approximately half of that for commercial production. 
 ARTICLE 4 - CHANGES TO THE SPECIFICATION

 4.1 No major changes or modifications can be made by ST to the Specifications or the Wafers without the prior written authorization of Customer. Major
changes and modifications by ST are defined as any product or process modification that affects product form, fit, function or reliability. 
 4.2 Should ST
decide to port Manufacturing Process to another ST facility, ST will notify Customer through a Process Change Notice (“PCN”). Customer may either accept or reject such PCN by providing notice in writing to ST. If ST receives no written
response within thirty-five days after sending the PCN, Customer will be deemed to have accepted such PCN. If required, the cost of new masks and qualification lots associated with the change shall be borne by ST. Alien shall bear its own costs of
testing qualification wafers. 
 4.3 ST will supply Wafers so long as demand exists for the Class 1 IC, ST maintains the technical capability of
manufacturing such Wafers, and the Class 1 IC is not replaced by a more competitive one. Should ST decide to discontinue the manufacturing of Wafers, ST will notify Customer through a Product Termination Notification (“PTN”). Thirty
(30) days after this notification, the following rules will apply: (a) all Contracts of Sale already in backlog at the date of the notification will be fulfilled; and (b) ST will accept one or several purchase orders during the
subsequent twelve (12) months, delivery to be made within a maximum period of six (6) months after the end of this twelve (12) month period. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 4 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 ARTICLE 5 – FORECAST/CANCELLATION/RESCHEDULE 
 5.1 Customer will provide a twelve (12) month rolling forecast of its monthly volume requirements for the Wafers for each of the Manufacturing Processes. Each
forecast shall be based on quarters containing four (4) weeks for the first month of the quarter, four (4) weeks for the second month of the quarter and five (5) weeks for the third month of the forecast. Except as set forth in
Section 5.3 below, the first four (4) months of the rolling forecast shall be binding, and the remaining eight (8) months shall be for information purposes only. Customer shall update this forecast and forward the same to ST, on the
first day of each calendar month during the Term beginning October 1, 2003. On the first day of each calendar month, Customer shall issue an Order to ST to initiate the manufacture of the Wafers; provided, however, that the Order for the first
four (4) months from the Qualification Date shall be issued at least twelve (12) weeks prior to the earliest requested delivery date. Each Order will be issued by Customer in accordance with the applicable Cycle Time. ST shall acknowledge
each Order and confirm the scheduled delivery date within seventy-two (72) hours from the date of receipt of the Order. If Orders for the four (4) month binding period are in accordance with the terms and conditions of this Agreement, such
Orders shall be deemed accepted by ST and therefore a Contract of Sale. 
 5.2 All Orders for the Wafers will be issued to
ST by Customer. 
 5.3 Rescheduling or cancellation after the acceptance of the Order and prior to the commencement of the Cycle Time is limited to 50% of
the quantity of Wafer in the Order; upon commencement of Cycle Time, all Orders are firm and noncancellable. Rescheduling of Orders less than one (1) week prior to the commencement of Cycle Time is subject to ST’s prior written approval.

 5.4 Prior to the commencement of the Cycle Time, ST will use reasonable commercial efforts to meet ALIEN’s requests to increase an Order to up to
135% of the quantity of Wafers in the Order. 
 5.5 For Conventional Wafers, ST and Customer will agree on a testing protocol and associated pricing for this
testing. 
 5.6 For NanoBlock Wafers, ST will provide Customer T84 technology parameters by lot. 
 5.7 ST agrees that Cycle Time for NanoBlock Wafers shall not exceed that for Conventional Wafers, as long as the Conventional Wafers and NanoBlock wafers are
manufactured using the same silicon process technology and in the same Facility. 
 ARTICLE 6 - MANUFACTURING AND SUPPLY 
 6.1. All Wafers shall be manufactured exclusively by ST or its Affiliates (either directly or through ST’s subcontractors) and sold by ST to ALIEN pursuant to the
terms and conditions in this Agreement. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 5 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 6.2 ST and its Affiliates may manufacture and sell, directly or indirectly, the Conventional Wafers and Product to
third parties. 
 ARTICLE 7 - SHIPMENT OF ST PRODUCT 
 7.1 All shipments of the Wafers shall be FOB ST’s facility if shipped from the U.S.; and FCA (Incoterms 2000) if shipped from ST’s or its subcontractor’s facilities in Europe or Asia. Ownership and risk
of loss or damage to the Wafers shall pass to Customer at ST’s delivery of the Wafers to the carrier at the applicable FOB or FCA point. 
 ARTICLE 8 - PRICES AND TERMS OF PAYMENT 
 8.1 The sales of the Wafers to Customer shall be made at the price agreed upon by the parties and
shown in Exhibit C. Such prices will be exclusive of taxes and/or duties. In consideration for ALIEN’s contributions pertaining to the prototype design and development, ST commits to sell Wafers to ALIEN [***]. Such discount is in full payment
of all of ALIEN’S contributions under this Agreement. 
 8.2 All payments shall be made by Customer in US Dollars within thirty (30) days from
Customer’s receipt from ST (by facsimile, mail, electronic file, express courier or hand delivery) of the corresponding invoice or shipment, whichever comes later. 
 ARTICLE 9 - WARRANTY 
 9.1 With respect to the sale and delivery of Wafers: 
 9.1.1 ST warrants that the Wafers shipped by ST to ALIEN will be free from defects in material and workmanship, and will conform to the Specifications. This warranty
shall remain effective for a period of three months from the date of shipment of the Wafers by ST. The warranty set forth in this Section 9.1.1 shall not constitute a yield guarantee. 
 9.1.2 If, during the applicable aforementioned warranty period, (i) ST is notified promptly in writing by ALIEN upon discovery of any such defect in the Wafers,
including a detailed description of such defect; (ii) such Wafers are returned by ALIEN to ST; and, (iii) ST’s examination (such examination to be performed as soon as practicable, but no later than 30 days after receipt) of such
Wafers discloses that such Wafers contain demonstrable processing or electrical defects and such defects are not caused by accident, abuse, misuse, neglect, alteration, improper handling, testing or inspection by any person and/or entity other than
ST, then ST shall replace such Wafers with conforming Wafers, or, at ALIEN’s option, issue to ALIEN a credit for such Wafers. 
 9.1.3 This warranty
shall not apply to any Wafers that have been repaired or altered, except by ST, or that have been subjected to misuse, negligence, accident, improper transportation, unusual physical or electrical stress, or improper storage. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 6 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 9.2 General Warranty Provisions applicable to the Wafers: 
 9.2.1 ST makes no warranty or guarantee of any kind with respect to sales or orders for prototype, Risk Production Orders or any other nonqualified Wafers. Any Wafers
sold under such sales or orders are furnished “AS IS” “WITH ALL FAULTS”. 
 9.2.2 LIFE SUPPORT DEVICES: THE PRODUCTS ARE NOT AUTHORIZED
FOR USE AS CRITICAL COMPONENTS OF LIFE SUPPORT DEVICES OR SYSTEMS. ST DISCLAIMS ANY WARRANTY OR RESPONSIBILITY FOR SUCH USAGE, WHICH SHALL BE AT CUSTOMER’S SOLE RISK, EVEN IF ST HAS BEEN PREVIOUSLY NOTIFIED OF SUCH USAGE. AS USED HEREIN,
“LIFE SUPPORT DEVICES OR SYSTEMS” ARE DEVICES OR SYSTEMS WHICH ARE INTENDED FOR IMPLANT INTO THE BODY TO SUPPORT OR SUSTAIN LIFE, OR TO ASSIST THEREIN, AND WHOSE FAILURE TO PERFORM CAN BE REASONABLY EXPECTED TO RESULT IN SIGNIFICANT INJURY
TO THE USER. A “CRITICAL COMPONENT” IS ANY COMPONENT OF A LIFE SUPPORT DEVICE OR SYSTEM WHOSE FAILURE TO PERFORM CAN REASONABLY BE EXPECTED TO CAUSE OR RESULT IN THE FAILURE OF PERFORMANCE OF A LIFE SUPPORT DEVICE OR SYSTEM OR TO ADVERSELY
AFFECT ITS SAFETY OR EFFECTIVENESS. 
 9.2.3 THE WARRANTIES SET FORTH IN THIS SECTION 9 ARE IN LIEU OF ANY AND ALL OTHER WARRANTIES, EXPRESSED, STATUTORY OR
IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABILITY FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. ST SHALL IN NO EVENT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES,
INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, LOSS OF USE OR COST OF LABOR BY REASON OF THE FACT THAT SUCH WAFERS SHALL HAVE BEEN DEFECTIVE, NON-CONFORMING OR OTHERWISE NOT IN CONFORMITY WITH SECTION 9. ST AND ITS AFFILIATES NEITHER ASSUMES NOR
AUTHORIZES ANY OTHER PERSON TO ASSUME FOR ST OR THE AFFILIATES ANY OTHER LIABILITIES IN CONNECTION WITH THE SALE OF THE WAFERS. 
 ARTICLE
10 - LICENSE GRANT 
 10.1 ALIEN hereby grants to ST and its Affiliates a worldwide, perpetual, royalty-free, fully paid up license under any ALIEN
Technology (including Background Technology and Foreground Technology but excluding Nanoblock Technology and FSA Technology), to the extent necessary for ST and its Affiliates to design, develop, have designed, have developed, manufacture, have
manufactured, commercialize (directly or through its distribution channel) and make the necessary modifications to the Class 1 ICs to comply with changes to the Auto-ID Center Specification for any third party. 
 10.2 As long as this Agreement continues in force, ST shall have license rights to make improvements to the Wafers. To the degree relevant, improvements to the
Conventional Wafers must also be applied to the NanoBlock Wafers, and vice versa. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 7 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 10.3 If this Agreement terminates, the parties will negotiate in good faith license rights to make derivatives to the
Class 1 ICs outside the context of the alliance, provided that the royalty rate payable to Alien shall be one percent (1%) of the selling price. 
 ARTICLE 11 - INDEMNIFICATION BY ST 
 11.1 ST will defend, indemnify and hold harmless Customer against a claim
alleging that the Manufacturing Processes infringe any copyrights, patents, trade secrets, mask works or other proprietary rights of any third parties arising under United States law or the law of any other country in which the Class 1 ICs are sold
and will pay resulting costs, damages and reasonable attorney’s fees finally awarded, provided that: (i) Customer promptly notifies ST, by written communication, of the claim, (ii) Customer cooperates in a reasonable manner in such
investigation and defense; and (iii) ST has sole control of the defense and all related settlement negotiations. If such claim occurs, or in ST’s opinion is likely to occur, Customer agrees to permit ST, at its option and expense, and in
addition to the above obligation, either to procure for Customer the right to continue using the Class 1 ICs or to replace or modify the same so it becomes non-infringing and provides the same capability as before. 
 11.2 ST shall have no obligation under Section 11.1 for any claim, which results from: (a) the combination of a Class 1 IC with other products if such
infringement would not have arisen but for the combination; or (b) the Specification(s) or the Designs provided by Customer to ST under this Agreement. 
 11.3 ST’s total liability to Customer under Section 11.1 is subject to Article 13 below. 
 11.4 The foregoing states the entire liability
of ST for infringement under this Agreement. THIS PROVISION IS STATED IN LIEU OF ANY OTHER EXPRESSED, IMPLIED OR STATUTORY WARRANTY AGAINST INFRINGEMENT, AND SHALL BE THE SOLE AND EXCLUSIVE REMEDY FOR INFRINGEMENT OF ANY KIND. 
 ARTICLE 12 - INDEMNIFICATION BY ALIEN 
 12.1 ALIEN
will defend, indemnify and hold harmless ST against a claim alleging that the ALIEN Technology infringes any copyrights, patents, trade secrets, mask works or other proprietary rights of any third parties arising under United States law or the law
of any other country in which the Class 1 ICs are sold and will pay resulting costs, damages and reasonable attorney’s fees finally awarded, provided that: (i) ST promptly notifies ALIEN, by written communication, of the claim,
(ii) ST cooperates in a reasonable manner in such investigation and defense; and (iii) ALIEN has sole control of the defense and all related settlement negotiations. If such claim occurs, or in ALIEN’s opinion is likely to occur, ST
agrees to permit ALIEN, at its option and expense, and in addition to the above obligation, either to procure for ST the right to continue manufacturing and 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 8 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 
selling the Class 1 ICs or to replace or modify the same so it becomes non-infringing and provides the same capability as before. 
 12.2 ALIEN shall have no obligation under Section 12.1 for any claim, which results from (a) the combination of a Class 1 IC with other products if such
infringement would not have arisen but for the combination, or (b) the Auto-ID Specification. 
 12.3 ALIEN’s total liability to ST under
Section 12.1 is subject to Article 13 below. 
 12.4 The foregoing states the entire liability of ALIEN for infringement under this Agreement. THIS
PROVISION IS STATED IN LIEU OF ANY OTHER EXPRESS, IMPLIED OR STATUTORY WARRANTY AGAINST INFRINGEMENT, AND SHALL BE THE SOLE AND EXCLUSIVE REMEDY FOR INFRINGEMENT OF ANY KIND. 
 ARTICLE 13 - LIABILITY 
 13.1 IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR
INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR FOR EXEMPLARY OR PUNITIVE DAMAGES, HOWEVER CAUSED, WHETHER FOR BREACH OF WARRANTY, CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. 
 13.2 EXCEPT IN THE EVENT OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, THE TOTAL LIABILITY OF EACH PARTY UNDER THIS AGREEMENT
SHALL NOT EXCEED THE AMOUNT OF MONEY RECEIVED BY ST FROM CUSTOMER UNDER THIS AGREEMENT FOR THE TWELVE MONTHS ENDING AT THE LATER OF THE TIME OF THE CLAIM OR THE OCCURRENCE OF THE DAMAGES GIVING RISE TO THE CLAIM FOR THE CLASS 1 ICS THAT ARE THE
SUBJECT MATTER OF THE CLAIM. 
 ARTICLE 14 - APPLICABLE PROVISIONS OF ALLIANCE AGREEMENT 
 The provisions of Sections 8 (Intellectual Property Rights Ownership), 9 (Licenses), 12 (Manufacturing and Supply), and General Terms of 16.1, 16.3, 16.4-16.11, and
16.13-16.15 of the Alliance Agreement also apply to and govern this Agreement. 
 ARTICLE 15 - TERM AND TERMINATION 
 15.1 The term of this Agreement shall begin on August 1, 2003, and unless previously terminated as herein after set forth, shall remain in force until
December 31, 2008. 
 15.2 Each Party may, at its discretion, upon written notice to the other party, and in addition to its rights and remedies
provided under this Agreement and at law, terminate this Agreement or any individual Contract of Sale in the event of any of the following: 
 15.2.1 Upon a
breach by the other Party of any material provision in this Agreement, and failure of such Party to cure such material default within sixty (60) days upon written notice thereof. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 9 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 15.2.2 A Party becomes the subject of any voluntary or involuntary proceeding under the applicable federal or state
bankruptcy or insolvency laws and such proceeding is not terminated within sixty (60) days of its commencement. 
 15.2.3 If a controlling interest of
the voting stock of the other party is acquired by, or if the other party merges with, or if a majority of the assets of the other party is acquired by, a direct competitor of the terminating party. 
 15.3 Upon the expiration or termination of this Agreement however arising the following shall apply: 
  

	 	(a)	ST shall return to Customer all Designs and Confidential Information provided by Customer to ST; 

  

	 	(b)	all outstanding Contracts of Sale existing prior to such expiration or termination shall be completed by ST and for this purpose and to that extent, the provisions of this Agreement
shall continue in full force and effect. 

 15.4 Upon termination of this Agreement, the terminating Party shall have the right to pursue all
available remedies at law or in equity that it may elect. 
 15.5 The provisions of Sections 1, 9, 10, 11, 12, 13, 14, 15.3, 15.4 and 17 of this Agreement
shall survive any termination or expiration of this Agreement. 
 ARTICLE 16 - NOTICES 
 All notices provided for in connection with this Agreement shall be given in writing and shall be effective (i) upon receipt, when served by personal delivery; or
(ii) the next day following the date of transmittal when transmitted by facsimile; or (iii) on the third day following the date of transmittal when transmitted by express mail (e.g., Federal-Express, UPS); or (iv) on the 7th day
following the date of mailing when sent by registered airmail of the sender’s country with postage prepaid, addressed to the Party as follows, or to a changed address as the Party shall have specified by prior written notice: 
 ST: STMicroelectronics, Inc. at 1310 Electronics Drive, Carrollton, TX 75006 USA, Attention: General Counsel; and 
 ALIEN: Alien Technology Corporation, 18220 Butterfield Boulevard, Morgan Hill, California, 95037, Attention: Vice President, Corporate Development. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 10 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 ARTICLE 17 - CHOICE OF LAW 
 This Agreement is made under the laws of the state of New York, without regard to its conflict of laws rules. 
  

									
	 ALIEN TECHNOLOGY CORPORATION
	 		 	 STMICROELECTRONICS, INC.

					
	 By:
	 	  	 		 	 By:
	 	  
					
	 Name:
	 	  	 		 	 Name:
	 	  
					
	 Title:
	 	  	 		 	 Title:
	 	  
					
	 Date:
	 	 ________________________
	 		 	 Date:
	 	 ________________________

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 11 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 Exhibit A 
 Specifications 
 [Insert same spec exhibit as JDA] 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 12 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 Exhibit B 
 Acceptance 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 13 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 Exhibit C 
 Pricing and Quantity 
  

							
	 Calendar Quarter in which Product is Received by ALIEN
	  	Minimum
Quantity of 6”
Wafers ST
Commits to
Ship Upon
Request
from
ALIEN**
(“Capacity
Commitment”)	 	 	Maximum Price
per Wafer
Committed by
ST ($US)*
(“Wafer Price”)	 
			
	 Q4 2003
	  	[	***]	 	[	***]
			
	 Q1 2004
	  	[	***]	 	[	***]
			
	 Q2 2004
	  	[	***]	 	[	***]
			
	 Q3 2004
	  	[	***]	 	[	***]
			
	 Q4 2004
	  	[	***]	 	[	***]
			
	 Q1 2005
	  	[	***]	 	[	***]
			
	 Q2 2005
	  	[	***]	 	[	***]
			
	 Q3 2005
	  	[	***]	 	[	***]
			
	 Q4 2005
	  	[	***]	 	[	***]
			
	 Q1 2006
	  	[	***]	 	[	***]
			
	 Q2 2006
	  	[	***]	 	[	***]
			
	 Q3 2006
	  	[	***]	 	[	***]
			
	 Q4 2006
	  	[	***]	 	[	***]
			
	 Q1 2007
	  	[	***]	 	[	***]
			
	 Q2 2007
	  	[	***]	 	[	***]
			
	 Q3 2007
	  	[	***]	 	[	***]
			
	 Q4 2007
	  	[	***]	 	[	***]
			
	 Q1 2008
	  	[	***]	 	[	***]
			
	 Q2 2008
	  	[	***]	 	[	***]
			
	 Q3 2008
	  	[	***]	 	[	***]
			
	 Q4 2008
	  	[	***]	 	[	***]

  

	*	Wafer Price shown is for Conventional or NanoBlock Wafers but does not include additional costs associated with testing for Conventional Wafers as provided for in Section 5.5.

 As long as rolling annual orders from Alien represent at least 60% of the Capacity Commitment, Wafer Prices shall be as shown in the table
above. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 14 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	 	•	 	If rolling annual order volume from Alien is less than 60% but more than 10% of the Capacity Commitment, Wafer Price will be adjusted as follows: 

  

	 	•	 	New Wafer Price = Wafer Price + (Wafer Price x (60% of Capacity Commitment over past 4 quarters—Actual% of Capacity Commitment ordered by Alien over past 4 quarters)/(300))

  

	 	•	 	For example, if Alien orders over a 4-quarter period are 40% of the Capacity Commitment over that time, the price for the next 4-quarter shall be 1+((60-40)/300) = 1.067 x Wafer
Price in the table above. 

 If orders from Alien represent less than or equal to 10% of the Capacity Commitment for a rolling 4-quarter
period, the parties will negotiate in good faith next year volume and price. 
  

	**	Notes on Wafer Production plants & wafers size: 

 Production shall start in Singapore Facility By July 1st 2004 (Rousset production will be limited to
[***] covering deliveries until end H1/2004) 
 The above Minimum Quantity Commitment assumes 6” Wafers. In the event that the parties
agree to switch to 8” wafers, the price and Minimum Quantity Commitment will be adjusted such that the price per die of the Wafer is no greater than is provided in the table above and the quantity of die provided each quarter is no fewer than
provided above. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 15 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 Exhibit D 
 [***] 
 [***] 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 16IC Technology Development Agreement

 Exhibit 10.31 
 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
 IC TECHNOLOGY DEVELOPMENT AGREEMENT

 This IC TECHNOLOGY DEVELOPMENT AGREEMENT (the “Agreement”) is entered into effective as of 27 of May 2005 (the
“Effective Date”), by and between Tower Semiconductor Ltd., an Israeli company with principal offices located at Ramat Gavriel Industry Zone, Migdal Haemek, 23105 Israel, (“Tower”) and Alien Technology Corporation, a Delaware
corporation with principal offices located at 18220 Butterfield Blvd, Morgan Hill, California 95037, USA (“Alien”). 
 RECITALS

 WHEREAS, Alien is designing and selling RFID tags that include integrated circuits and wishes to engage Tower to provide services
relating to the design of certain integrated circuits and the development of associated process technology; and 
 WHEREAS, Tower is willing
to provide, on the terms and conditions set forth in this Agreement, the design and process development services for integrated circuits, as described in the applicable Statement of Work and any exhibits attached thereto. 
 WHEREAS, Alien and Tower signed on September 3, 2004 a letter agreement titled “Memorandum of Understanding/Preliminary Agreement” (the
“MOU”) with respect to the design and process development of an IC and have commenced work under the MOU. 
 WHEREAS, [***].

 AGREEMENT 
 NOW,
THEREFORE, for good and valuable consideration, the parties hereto agree as follows: 
 1. DEFINITIONS. Unless this Agreement
expressly provides otherwise, the following terms shall have the meanings set forth below: 
 1.1 Technology means
inventions, trade secrets, know-how, designs, information, data, processes, methods, techniques, drawings, component board models, layouts, schematics, diagrams, functional blocks, Circuits, Devices, cells, design tools, software, design rules,
simulation models, net lists, software, test protocols, test structures, characterization and test results, methods and patterns, specifications and other technical information, whether or not patentable or otherwise protectable. 
 1.2 Process means, with respect to the Technology, recipes, modules and other items of semiconductor manufacturing process
Technology used to fabricate integrated circuits and other semiconductor devices and products, including variants of such Technology and any improvements, updates or revisions thereto. The Tower Process Technology in use for any given Statement of
Work will be described in such Statement of Work. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 1.3 Assembly means, with respect to a Technology, the manufacturing steps used
to integrate discrete integrated circuits into a stand-alone electronic system. 
 1.4 Circuit means a unit, comprised
of two or more active and/or passive Devices interconnected with each other and imprinted or associated on one or no re silicon substrates that is forming or performing a defined electrical function. 
 1.5 Device means an element (such as a transistor, diode, resistor, capacitor or inductor) that performs a specific electrical
function, excluding Circuit. 
 1.6 Existing means, with respect to a Technology or Intellectual Property Rights, the
Technology or Intellectual Property Rights owned or used, initially as of the Effective Date and thereafter as at the effective date of each SOW, by a party and which such party may use or provide to the other party in the performance of work under
this Agreement. 
 1.7 Developed means, with respect to a Technology or Intellectual Property Rights, all inventions,
discoveries, improvements and modifications to a Technology or Intellectual Property Rights developed during the course of work under a SOW. 
 1.8 Jointly Owned Developed Technology (JODT) means any Developed Technology that is jointly owned by the parties pursuant to Sections 6.4(b) and 6.4(e) of this Agreement. JODT shall expressly exclude any
underlying Existing Technology and Existing Intellectual Property Rights. 
 1.9 IC means an integrated circuit.

 1.10 RFID IC means integrated circuits that are incorporated into Radio Frequency Identification (“RFID”)
tags. 
 1.11 Intellectual Property Rights (IPR) means any and all copyrights, trade secret rights, inventions, patent
rights, design rights, database rights, mask works, topography rights and know-how, whether registered or unregistered, and including any application for registration for any of the foregoing, and any rights of similar nature or effect existing
anywhere in the world. 
 1.12 Statement of Work (SOW) means each separate statements of work to be mutually agreed
upon by Alien and Tower from time to time describing specific development projects to be conducted under this Agreement, and the parties respective responsibilities therein, as such projects are agreed by the parties to be undertaken. 
 1.13 Services mean the projects, tasks, services, and other work as described in and carried out by Tower under this Agreement or a
SOW. 
 1.14 Confidential Information means any information disclosed by one party to the other in connection with the
performance of this Agreement, including Technology and other information that relates to the disclosing party’s products, designs, business plans, business 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 2 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 
opportunities, finances, research, development, know-how, personnel, or third-party confidential information disclosed to the receiving party by the
disclosing party in any form whatsoever (including, but limited to, disclosure made in writing, orally or in the form of samples, models, computer programs or otherwise), and the terms and conditions of this Agreement, provided that such information
is at the time of disclosure designated as “confidential” or the nature of the information makes it obvious that it is confidential. Confidential Information does and will not include material that: 
 (a) is now or subsequently becomes generally available to the public or is disclosed to third parties without restriction on its use or
disclosure, provided that an officer of the disclosing party with the authority to determine that such information should not be treated as confidential authorized such general availability or disclosure; 
 (b) the receiving party can demonstrate that it had rightfully in its possession prior to disclosure by the disclosing party; 

(c) is developed independently by or for the receiving party without the use of any Confidential Information of the disclosing party or
otherwise in breach of this Agreement; 
 (d) the receiving party rightfully obtains without restriction from a third party
who has the right to transfer or disclose it and is not in breach of a confidentiality agreement with the disclosing party; or 
 (e) is disclosed without restriction on further disclosure, as expressly indicated in writing by ail officer of the disclosing party with authority to make such a determination. 
 1.15 Residual Information means information that is retained in the unaided memories of the receiving party’s employees who
lawfully have had access to the disclosing party’s Confidential Information pursuant to the terms of this Agreement and that employee’s specific responsibilities. An employee’s memory is unaided if the employee has not intentionally
memorized the information for the purpose of retaining and subsequently using or disclosing it, and has not recorded the information. 
 1.16 Exclusivity Period [***]. The Exclusivity Period is subject to extension commensurate with any material delays caused by Tower or [***], including without limitation delays in the wafer manufacturing
process and delays resulting from revised versions of such deliverables necessitated by problems in the initial deliverables by reason of the fault of Tower or [***] and without substantial contributing fault of Alien. 
 2. SCOPE OF SERVICES 
 2.1 Cooperation. During the term of this Agreement, the parties will work together in a mutually beneficial and cooperative fashion as set forth in executed SOWS in order to 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 3 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 
develop RFID IC products, related Process Technologies, including Process Technology modules specifically designed for RFID IC, and to create mutually
beneficial technological solutions. 
 2.2 Statements of Work. Each joint development project undertaken by the parties
will be covered by a separate Statement of Work which: 
 (a) shall be in substantially the form attached hereto as
Exhibit A; 
 (b) shall be subject to the terms and conditions of this Agreement; 
 (c) shall set forth in reasonable detail: (i) a description of the project, the Services to be performed by Tower, the work to be
performed by Alien and any additional work or tasks to be performed by third parties; (ii) each party’s contributions of employee, engineering and design resources, equipment, supplies, capital, and Existing Technology and Intellectual
Property Rights; (iii) the items to be delivered by Alien to Tower under the SOW (“Alien Deliverables”), the items to be delivered by Tower to Alien in connection with the Services (“Tower Deliverables”), and the items, if
any, to be delivered to either Alien or Tower by third parties (“Third Party Deliverables”), including the hardware and software, reference designs, technical papers, prototypes and other work product to be generated from the Services;
(iv) the development schedule; (v) key milestones for the Services; (vi) the roles and responsibilities of each of the parties, and of third parties, in completing the development, including in the evaluation, characterization,
testing and debugging of prototypes; (vii) if applicable, the roles and responsibilities of the parties in manufacturing, marketing, promotion, advertisement, commercialization, distribution and sale of products created under or resulting from
the Services or otherwise under the SOW; 
 (d) shall specify payments to be made by Alien to Tower for the performance of
Services and any other payments the parties agree to with respect to the project covered by the SOW; 
 (e) may contain
additional terms and conditions, including terms expressly modifying the terms of this Agreement, which for purposes of such Statement of Work supersede any conflicting provisions set forth in this Agreement, without modifying: (i) any
provision of this Agreement not expressly modified in such Statement of Work; or (ii) with respect to any other Statement of Work, those or any other provisions of this Agreement. 
 2.3 Obligation to Perform. Subject to Alien’s agreement to make payments as set forth in Section 5 and the applicable
Statement of Work, Tower agrees to engage in performance of Services for Alien. Tower shall have no obligation to commence Services until the applicable Statement of Work is agreed upon and fully executed. Alien shall have no obligation to commence
performance under a SOW until the SOW is agreed upon and fully executed. 
 2.4 Timing and Disclosures. Each party
agrees to use commercially reasonable efforts to perform its responsibilities, if any, as set forth under each applicable SOW and to allocate sufficient resources to complete the Services and other tasks in accordance with the relevant 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 4 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 
specifications and development schedule set forth in such SOW. In the event resource constraints are preventing a timely completion of Services or other
tasks under a SOW, each party will make commercially reasonable efforts to address the constraints to ensure completion of the project within the project timeline. To the extent permitted under its existing contractual obligations, each party, in
its discretion, will disclose to the other Confidential Information that is relevant to the other in performing the Services and other work under a SOW, including its relevant Existing Technology necessary to complete the SOW. While the parties
intend to disclose to one another Confidential Information including their relevant Existing Technology as part of any projects undertaken under this Agreement, for avoidance of doubt, neither party is to have an affirmative obligation hereunder to
assist in show-how, or the teaching of or transfer of know-how ill its Existing Technology or Developed Technology to the other party. 
 2.5 Change Orders. Either party may propose changes or modifications to a SOW. Both Parties will timely review ally proposed changes to a SOW and will identify impacts of such changes 011 the development
schedule, cost and deliverables under the SOW. Any modification or amendment to a Statement of Work agreed by the parties shall take effect by executing a written Change Order in substantially the form attached hereto as Exhibit B. Each
Statement of Work will be deemed to include all executed Change Orders that reference and modify such Statement of Work. Until such time as any Change Order is fully executed by both parties, Tower will continue to perform and be paid for the
Services as if such change had not been requested. 
 2.6 Purchase Order Terms Superseded. The terms and conditions of
this Agreement and the related Statements of Work and Change Orders shall exclusively govern all terms of the projects undertaken under this Agreement, including the performance of any Services and the provision of any Tower Deliverables to Alien,
and shall supersede all terms and conditions contained in any purchase order, order, order acknowledgement form, invoice or other business form submitted by either party to the other with respect to the subject matter of this Agreement and any SOW.

 2.7 Framework Agreement. This Agreement shall serve as an overall framework with respect to the joint Technology
developments of the parties, and it contains general principles regarding the parties’ responsibilities, cost sharing and ownership and use of Intellectual Property Rights and Developed Technology applicable to all projects undertaken under a
SOW executed by the parties, which principles may be modified on a project-by-project basis in the SOW as contemplated in Section 2.2(e), provided such modifications are signed by both Parties. 
 3. RELATIONSHIP OF THE PARTIES 
 3.1 Independent Contractors; No Joint Venture. The parties acknowledge their relationship is that of independent contractors. Nothing in this Agreement shall be construed to create a joint venture, partnership,
employment or agency relationship between Alien and Tower or Tower’s employees or contractors. Neither party is authorized to represent, bind, obligate or contract on behalf of the other. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 5 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 3.2 Subcontractors. Tower may use Tower Semiconductor U SA, Inc. (“Tower
USA”) and the subcontractors listed on Exhibit C (the “Approved Subcontractors”) to perform the Services or any part thereof, provided that such use shall not relieve Tower of its obligations under this Agreement or any SOW, and
Tower shall be responsible for ensuring that the Approved Subcontractors comply with the provisions hereof and of any applicable SOW. Additional subcontractors may be added to Exhibit C with Alien’s prior written approval, which will not be
unreasonably withheld or delayed. It being agreed that if Alien does not respond with its approval or disapproval of any requested addition within fourteen days after receiving the request for approval, Alien will be deemed to have approved such
addition. 
 3.3 Other Customers and Projects. 
 (a) Subject to the terms of this Agreement (including without limitation Section 3.3(b) and the restrictions on use and disclosure of
Confidential Information in Section 8), Tower shall be free to engage in other work, alone or with others, and to furnish information to and receive information from others, both during and after the term of this Agreement. 
 (b) [***]. 
 (c) Subject to the restrictions on use of Technologies and disclosure of Confidential Information as set forth in Sections 6, 7 and 8, Alien may collaborate with, or enter into a development agreement with a third party, before, during or
after the term of a project under this Agreement which is in the same subject area as any particular project contemplated by this Agreement. 
 4. RESPONSIBILITIES 
 4.1 Alien’s Responsibilities. 
 (a) With respect to each SOW, Alien agrees to designate (i) a project manager or single point of contact for Tower for the duration
of the Services to be performed under such SOW and (ii) all executive to whom issues unresolved between the parties’ project managers can be escalated for attempted resolution. 
 (b) Alien is responsible for the accuracy, completeness and quality of information or other materials supplied by Alien and used in
preparation of a SOW or in performance of the Services. 
 (c) Alien shall dedicate appropriate staff to each development
project, as specified in the applicable SOW. 
 (d) Alien shall provide Tower with reasonable access to Alien’s
facilities, subject lo Alien’s standard rules and regulations for such facilities, at all reasonable times when necessary to perform the Services. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 6 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 (e) Alien understands that in order to be able to fully use the results of the
Services performed hereunder, it may be necessary for it to obtain licenses from third parties (such as vendors of physical libraries and other intellectual Property components). 
 (f) Alien acknowledges that Tower’s ability to perform in its obligations (which may include delivery schedules) as set forth in this
Agreement or any SOW is contingent upon Tower receiving timely, accurate and completed data, information, assistance and specifications from Alien and, in certain cases, from third parties. Alien shall promptly notify Tower of anticipated delays in
the delivery of items, which are Alien’s responsibility and shall provide prompt assistance in resolving any such delays or any defects in such items reported by Tower. 
 4.2 Tower’s Responsibilities. 
 (a) With respect to each SOW, Tower agrees to designate (i) a project manager or single point of contact for Alien for the duration of the Services to be performed under such SOW and (ii) a11 executive to
whom issues unresolved between the parties’ project managers can be escalated for attempted resolution. 
 (b) Tower is
responsible for the accuracy, completeness and quality of information supplied by Tower and used in preparation of the SOW or in performance of the Services. 
 (c) Tower shall dedicate appropriate staff to perform the Services described in the applicable SOW. 
 (d) Tower shall provide Alien with reasonable access to Tower’s facilities, subject to Tower’s standard rules and regulations
for such facilities, at all reasonable times when necessary to assist in performance of the Services or other tasks to be performed by Alien as set forth in the applicable SOW. 
 (e) Tower shall promptly notify Alien of anticipated delays in the delivery of items, which are Tower’s responsibility and shall
provide prompt assistance in resolving any such delays. 
 5. BILLING AND PAYMENT 
 5.1 Interim Payments. A SOW may provide for certain payments to be made following the passage of certain dates “Interim
Payment”). Following the passage of each such date (each an “Interim Date”), Tower shall invoice Alien for the applicable amount, it being understood that the date of Towel’s invoice shall not be earlier than the applicable
interim Date. Each Interim Payment shall be due and payable thirty (30) days after the date of invoice. 
 5.2 Milestone
Payments. A SOW may provide for certain portions of the Services to be completed by interim deadlines (“Milestones”), achievement of which by Tower will trigger Tower’s right to invoice Alien for, and Alien’s obligation to
pay, the associated payment (“Milestone 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 7 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 
Payment”). Tower will use commercially reasonable efforts to achieve all Milestones and upon successful completion of a Milestone, Tower will provide to
Alien a statement describing such achievement along with an invoice for the amount of the applicable Milestone Payment. The date of each such invoice shall not be earlier than the date that Tower achieves the applicable Milestone (the
“Milestone Date”). Each Milestone Payment shall be due and payable thirty (30) days after the date of invoice. 
 5.3 Wafer and Mask Payments. A SOW (including by way of incorporating a price quotation submitted by Tower to Alien and signed by Alien) may provide for certain payments to be made to Tower in connection with the manufacturing of
wafers and the making of masks. Tower will invoice Alien for payments associated with wafer manufacturing and mask malting. Wafer manufacturing related payments will be due and payable thirty (30) days after the date of invoice. If so set forth on
the applicable invoice, mask making related payments will be due fourteen (14) days after the date of invoice. It is understood that the date of each such invoice will not be earlier than (a) in the case of masks, receipt of the applicable
GDSII file at Tower, and (b) in the case of wafers, the date of shipment of the applicable wafers to Alien. 
 5.4
Taxes. The amounts payable to Tower under this Agreement do not include any sales, use or other governmental taxes or charges. Alien agrees to pay all applicable taxes, duties or governmental charges (other than taxes based on Tower’s
net income), regardless of when they may come due, or to reimburse Tower for the same if Tower is required by applicable law to collect and pay over the same to the relevant taxing authority. 
 5.5 Late Payments. If Alien Fails to make payments when due, and such payments are not the subject of a good faith dispute, Tower
may charge Alien interest on the overdue amount from the date such amount became due at the lesser of 1% per month or the maximum interest rate permitted by applicable law. In addition, Alien will be liable to Tower for all costs of collection
incurred by Tower in collecting past clue amounts. Nothing in this section shall limit any other remedies available to Tower. 
 6.
INTELLECTUAL PROPERTY RIGHTS 
 6.1 Existing Technology. The parties agree that as between Tower and Alien,
unless otherwise provided in a SOW: (i) Existing Technology of Alien and all Intellectual Property Rights therein are and shall be owned by, and shall remain the sole and exclusive property of Alien; and (ii) Existing Technology of Tower
and all Intellectual Property Rights therein are and shall be owned by, and shall remain the sole and exclusive property of Tower. Except as arid to the extent otherwise provided in this Agreement or an applicable SOW, neither this Agreement nor the
performance of Services hereunder shall give either Tower or Alien any ownership interest in or right to any Existing Technology or Existing Intellectual Property Rights held by the other party. 
 6.2 Developed Process Technology and Devices. The parties agree that as between Tower and Alien, unless otherwise provided in a
SOW, all Developed Process Technology, Developed Devices (and all Intellectual Property Rights therein) arising from work carried out under 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 8 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 
a SOW, including any and all Developed Process Technology modules and Developed Devices specifically designed for the manufacturing of RFID IC, shall be the
exclusive property of Tower, regardless of whether such Developed Process Technology and Developed Devices are invented solely by Tower, solely by Alien or jointly by the parties. Tower shall be free to use any Developed Process Technology and
Developed Devices or any other improved Process Technology or Devices arising eon? development projects or developed independently from a SOW to offer foundry services to any entity, including Alien. Tower shall have the sole and exclusive right
(but not the obligation) to seek patent protection (or any other form of Intellectual Property Rights) covering any Developed Process Technology and Developed Devices iii all countries of the world at its sole expense and shall have full control
over the prosecution and maintenance of such patents or other Intellectual Property Rights and title to any patent or other Intellectual Property Rights issuing therefrom shall be issued solely in the Tower’s name. 
 6.3 Developed Assembly Technology and Developed Circuits. The parties agree that as between Tower and Alien, unless otherwise
provided in a SOW, all Developed Assembly Technology and Developed Circuits (and all Intellectual Property Rights therein) arising from Work carried out under a SOW, including ally and all Developed Assembly Technology modules and Developed Circuits
specifically designed for Alien under SOWS pursuant to this Agreement, shall be the exclusive property of Alien, regardless of whether such Developed Assembly or Developed Circuits Technology are invented solely by Tower, solely by Alien or jointly
by the parties. Alien shall be free to use any Developed Assembly Technology and Developed Circuits or any other improved Assembly Technology and Developed Circuits arising from development projects or developed independently from a SOW to design,
manufacture and assemble Alien products wherever manufactured. Alien shall have the sole and exclusive right (but not the obligation) to seek patent protection (or any other form of Intellectual Property Rights) covering any Developed Assembly
Technology and Developed Circuits in all countries of the world at its sole expense and shall have full control over the prosecution and maintenance of such patents or other Intellectual Property Rights and title to any patent or other Intellectual
Property Rights issuing therefrom shall be issued solely in the Alien’s name. 
 6.4 Other Developed Technology.
Except in the areas of Process, Assembly, Device and Circuit (the rules for which are set forth in Sections 6.2 and 6.3 above), the parties agree that as between Tower and Alien, unless otherwise provided in a SOW, the following rules shall apply in
the following descending order to determine the ownership of items and deliverables of other Developed Technology (and all Intellectual Property Rights therein), arising from work carried out under a SOW: 
 (a) Any item identified to be owned by a particular party in the applicable SOW, shall be exclusively owned by such party. 
 (b) Any item expressly identified to be Jointly Owned Developed Technology by the parties in the applicable SOW shall be jointly owned in
equal undivided interests by Tower and Alien (unless a different joint ownership arrangement expressly described in the applicable SOW). 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 9 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 (c) Any item that has been primarily derived from an Existing Technology or
Intellectual Property Rights of a party shall be exclusively owned by such party. 
 (d) Any item that has been primarily
developed by a party shall be exclusively owned by such party, notwithstanding any inputs and suggestions that the other party may have made in regard to such work and deliverables. 
 (e) Any item developed or reduced to practice jointly by the parties during the course of the performance of a SOW not covered by
sub-Sections 6.4 (a) through (d) above shall be Jointly Owned Developed Technology, owned in equal undivided interests by Tower and Alien. 
 6.5 Assignment of Rights. Except for items of Jointly Owned Developed Technology, the party that is not entitled to own an item pursuant to the rules set forth in Sections 6.2, 6.3 and 6.4 of this Agreement,
hereby assigns to the owning party all right, title and interest it may have in such item and any Intellectual Property Rights therein. The owning party shall have the sole and exclusive right (but not the obligation) to seek patent protection (or
other Intellectual Property Rights) covering any item it solely owns in all countries of the world, at its sole expense, and shall have full control over the prosecution and maintenance of such patents (or other Intellectual Property Rights) and
title to any patent (or other Intellectual Property Rights) issuing therefrom shall be issues solely in the name of the owning party. 
 6.6 Jointly Owned Developed Technology. Tower and Alien shall: 
 (a) execute any and
all documents necessary to effectuate their equal and undivided interests to Jointly Owned Developed Technology; 
 (b) have
the right to freely use, exploit, protect, maintain, license, transfer and enforce its rights to the portion of any Jointly Owned Developed Technology that is not Existing Technology with no royalty payment or accounting to the other party, provided
each party shall bear its portion of Joint Costs (as defined below); and 
 (c) jointly share expenses incurred in securing
rights mutually agreed to be prosecuted by the parties such as those associated with obtaining and maintaining Intellectual Property Rights with respect to Jointly Owned Developed Technology (“Joint Costs”). If one party elects not to seek
or secure such rights on Jointly Owned Developed Technology in any particular country or not to share equally in the expenses thereof, the other party will have the right to seek and maintain such protection at its own expense and shall have full
and exclusive control over the prosecution and maintenance thereof, even though title to any Intellectual Property Rights arising from Jointly Owned Developed Technology will be joint; provided, however, that the non-participating party agrees that
it will not have the right to grant licenses under such Intellectual Property Rights to third parties (other than its own majority-owned subsidiaries) in such country or countries. Each party hereby forever waives and releases any right it has or
will have in the future to require any accounting, sharing or payment of profits from the other in connection with Jointly Owned Developed Technology. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 10 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 6.7 Cooperation and Disclosure. Tower and Alien will: 
 (a) perform such acts, execute and deliver such instruments and documents, submit such filings, and do all such other things as may be
reasonably necessary to evidence, perfect and enforce the rights of the parties stated in this Section 6; 
 (b) cause
their employees performing work under this Agreement or an applicable SOW, whether solely or jointly with others, to promptly make a complete written disclosure to their employer for patent review of any Developed Technology, the normal course,
specifically pointing out those features or concepts believed to be new or different; and 
 (c) promptly submit to the other
party copies, marked as Confidential Information, of any written disclosures pertaining to Developed Technology which is deemed to be owned by the other party or deemed to be Jointly Owned Developed Technology under this Agreement, including any
filing or receiving of documents related to prosecution or issuance of Intellectual Property Rights arising from Jointly Owned Developed Technology for which the party share Joint Costs, which submissions shall be subject to the provisions of
Section 8 (Confidential Information) of this Agreement. 
 7. LICENSES 
 7.1 By Alien. Alien hereby grants to Tower a worldwide, non-exclusive, nontransferable (except pursuant to Section 12.1
below), royalty-free (except as otherwise provided in an applicable SOW), with no right to sublicense (expect as expressly permitted in this Section 7.1) licenses to use any: 
 (a) Existing Technology and other Technology Developed solely by Alien that are owned and licensable by Alien (and the Intellectual
Property Rights of Alien therein), solely to perform Tower’s obligations under this Agreement and under any applicable SOW; 
 (b) Developed Technology jointly Developed by Alien and Tower, that are owned and licensable by Alien (and the Intellectual Property Rights of Alien therein), solely to perform Tower’s obligations under this Agreement and under any
applicable SOW and to make and have made for Alien, use, have used, lease, offer to sell, sell, export or otherwise transfer any products or related processes based on work and deliverables arising from a SOW (including any derivative of such
Developed Technology as described in this sentence), and to practice and have practiced for Alien any method in support of these rights. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

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 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 7.2 By Tower. Tower hereby grants to Alien a worldwide, non-exclusive,
nontransferable (except pursuant to Section 12.1 below), royalty-free (except as otherwise provided in an applicable SOW), with no right to sublicense (expect as expressly permitted in this Section 7.2) licenses to use any: 
 (a) Existing Technology and other Technology Developed solely by Tower that is owned and licensable by Tower (and the Intellectual
Property Rights of Tower therein), to perform Alien’s obligations under this Agreement and under any applicable SOW. 
 (b) Developed Technology jointly Developed by Tower and Alien to the extent owned and licensable by Tower (and the Intellectual Property Rights therein), to perform Alien’s obligations hereunder and under any applicable SOW, and, and
to make at or have made by Tower, use, have used, lease, offer to sell, sell, export, or otherwise transfer any products or processes based on work or deliverables arising from a SOW (including any derivative of such Developed Technology as
described in this sentence), and to practice and have practiced by Tower any method in support of these rights. 
 7.3
Acknowledgments by the Parties. Tower acknowledges that nothing in this Agreement shall restrict Alien’s existing rights to use the Existing Technology or Developed Technology owned by Alien. Except as otherwise provided in
Section 3.3(b), Alien acknowledges that nothing in this Agreement shall restrict Tower’s existing rights to use Existing Technology or Developed Technology owned by Tower. 
 7.4 Rights not Granted. This Agreement grants no license to Tower or to Alien under any other Technology or Intellectual Property
Rights, including all trademarks, not explicitly identified and licensed in this Agreement. 
 8. CONFIDENTIAL INFORMATION 

8.1 Duty to Maintain Confidentiality. Each party agrees to accept Confidential Information from the other party solely for use
in connection with performance of its obligations and exercise of its express rights granted under this Agreement and the executed SOWS and that for a period of five (5) years from the date of disclosure it will hold in strict confidence and not
disclose, publish, or disseminate such Confidential Information, to anyone other than those of its employees and subcontractors with a need to know and have executed appropriate confidentiality agreements, nor use Confidential Information for its
own or any other Party’s benefit, without the prior written approval of an authorized representative of originating Party. The receiving party will protect Confidential Information of the disclosing party from disclosure, publication,
dissemination and unauthorized use with the same degree of care the receiving party uses to protect its own confidential and proprietary information of similar nature, but in no event less than a reasonable degree of care. 
 8.2 Exceptions. The receiving party may disclose Confidential Information if required by operation of law or any tribunal of
competent jurisdiction, provided that it will take reasonable steps to first give the originating party sufficient prior notice to contest the order to disclose, and must cooperate with the originating party in any efforts by the originating party
to obtain a protective order or other confidential treatment. The parties shall have the right to disclose the terms of this Agreement to attorneys, government agencies, financial advisors and potential investors and acquirers (of the party or the
party’s relevant foundry, division, or product line), subject to reasonable confidentiality provisions. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
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 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 8.3 Residuals; No Licenses. The parties acknowledge that exposure to
Confidential Information necessarily will mean that personnel of a receiving party will learn and may retain Residual Information. This Agreement shall not restrict good faith use of Residual Information by personnel of a receiving party as part of
the individual’s generally acquired experience; provided, however, that nothing in this Section 8 shall be deemed to grant any rights under disclosing party Intellectual Property Rights to the receiving party or their personnel in excess
of those license rights expressly granted under Section 7 above. All Confidential Information remains the property of the disclosing party, unless otherwise conveyed under the terms of the Agreement and any license under Intellectual Property
Rights must be express and in writing signed by both parties. 
 8.4 Injunctive Relief. The parties acknowledge that
any breach or threatened breach of the obligations of confidentiality contained in this Section 8 may cause substantial harm to the non-breaching party that may not be reasonably or adequately compensated with monetary damages. Accordingly, in
addition to any other available remedies, the parties recognize each party’s right to seek injunctive relief in connection with such breach or threatened breach. 
 9. TERM; TERMINATION 
 9.1 Term. The term of this Agreement shall begin as of
the Effective Date and continue until [***], unless earlier terminated as set forth in this Section 9. The term of this Agreement may be extended by a writing signed by both parties. 
 9.2 Termination of Agreement or Statement of Work for Default. If a party is in Default (as defined below) the other party may, on
written notice terminate either this Agreement or any particular Statement of Work hereunder, with respect to which the other party is in default, subject to the limitations of Section 9.2. “Default” occurs if: 
 (a) a party is in material breach of its obligations under this Agreement or a Statement of Work and such party does not cure such breach
within thirty (30) days after receipt of written notice thereof; 
 (b) a party infringes or threatens to infringe the
Intellectual Property Rights of the other party, breaches or threatens to breach its obligations in respect to the Confidential Information of the other party or is otherwise in breach of its obligations under Sections 7 or 8 of this Agreement; or

 (c) a party makes an assignment for the benefit of its creditors, files a voluntary petition in bankruptcy, is the subject
of an involuntary petition in bankruptcy which is not discharged within sixty (60) days, or applies for or permits the appointment of a receiver or trustee for its assets. The parties’ rights under this Section 9.2 are not exclusive,
but shall be in addition to any rights or remedies provided by law. 
  

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 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 9.3 Effect of Termination. Termination or expiration of this Agreement shall
terminate all Statements of Work then in effect (but not any payment obligations accrued prior to termination), but the termination of a Statement of Work shall not affect this Agreement or other Statements of Work then in effect. Upon termination
or expiration of this Agreement or any specific Statement of Work: 
 (a) Upon request by the other party, each party shall
return or destroy within 30 days, at the other party’s option, all Confidential Information it received from the other party relating to the terminated Statement of Work, and in the case of termination of the Agreement, all Confidential
Information of the other party; provided however that in either case, each party shall be entitled to retain sufficient copies of those elements of the other party’s Confidential Information as are reasonably necessary to exercise those of its
rights which may survive under subsection (b) immediately below. 
 (b) All definitions contained in this Agreement,
wherever stated, shall survive any termination of this Agreement or any Statement of Work. Further, the following provisions of this Agreement shall survive termination or expiration of the Agreement, and with respect to termination of a Statement
of Work shall survive as to such Statement of Work: Section 1 (Definitions), Section 3.3 (Other Customers), Section 5 (Billing and Payment), Section 6 (Intellectual Property), Section 7.1 (unless the Agreement is terminated
by Alien under Section 9.2), Section 7.2 (unless the Agreement is terminated by Tower under Section 9.2(a) or (b)), Sections 7.3 and 7.4, Section 8 (Confidential Information), this Section 9.3, Section 10 (Disclaimer of
Warranties), Section 11 (Limitation of Liability), and Section 12 (General). 
 (c) If this Agreement or any SOW is
terminated prior to completion of the Services specified in any terminated SOW, then, within thirty (30) days after termination, Tower shall submit invoices for all Services satisfactorily performed and out-of-pocket expenses reasonably
incurred under executed SOWS prior to the effective date of such termination and, only if the Agreement (or the relevant SOW) is terminated by Tower under Section 9.2, an itemized listing of its reasonable expenses resulting from Tower’s
early termination of the Services. Within thirty (30) days after receipt of such statement from Tower, Alien shall remit to Tower payment for any cumulative balance of outstanding invoices. If a SOW provides for Interim Payments or Milestone
Payments, the amount due to Tower for Services performed prior to termination shall be determined as follows: (i) in the case of Interim Payments, (A) all Interim Payments for which the Interim Date has passed but no invoice has been
issued, and (B) the next Interim Payment, multiplied by a fraction, the numerator of which shall be the number of days elapsed from the previous Interim Date until the effective date of termination, and the denominator of which shall be the
total number of days from the previous Interim Date to the next Interim Date; and (ii) in the case of Milestone Payments, (A) all Milestone Payments for which the Milestone has been satisfactorily completed by the Milestone Date but no
invoice has been issued, and (B) the next Milestone Payment, adjusted to reflect the percentage of work toward such Milestone had been completed as of the date of termination, as reasonably determined by the parties. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

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 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 10. DISCLAIMER OF WARRANTIES 
 10.1 No Warranty. ALL INFORMATION, KNOW HOW, TECHNOLOGY AND CONFIDENTIAL INFORMATION SUPPLIED HEREUNDER BY ONE PARTY TO THE OTHER
ARE PROVIDED “AS IS” AND EACH PARTY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF TITLE, NONINFRINGEMENT, MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE. NEITHER PARTY SHALL BE LIABLE TO THE OTHER IF ANY INFORMATION, KNOW-HOW, OR TECHNOLOGY PROVIDED TO THE OTHER PARTY HEREUNDER IS FOUND TO BE INACCURATE, DEFECTIVE, OR INFRINGES THE INTELLECTUAL PROPERTY RIGHTS OF A THIRD
PARTY. 
 11. LIMITATION OF LIABILITY 
 11.1 No Consequential Damages. EXCEPT FOR BREACHES OF DUTY OF CONFIDENTIALITY UNDER SECTION 8, UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL,
INCIDENTAL OR PUNITIVE DAMAGES OF ANY TYPE WHATSOEVER, INCLUDING, WITHOUT LIMITATION, LOST GOODWILL, LOST PROFITS, LOSS OF DATA OR SOFTWARE, SERVICES STOPPAGE OR IMPAIRMENT OF OTHER GOODS, AND WHETHER ARISING OUT OF BREACH OF WARRANTY, BEACH OF
CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE OR IF SUCH DAMAGE COULD HAVE BEEN REASONABLY FORESEEN AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY EXCLUSIVE
REMEDY PROVIDED HEREIN. 
 11.2 Limitation of Liability. EXCLUDING ALIEN’S PAYMENT OBLIGATIONS HEREUNDER, A
PARTY’S TOTAL LIABILITY TO THE OTHER PARTY SHALL NOT EXCEED THE TOTAL AMOUNT ACTUALLY PAID BY ALIEN ASSOCIATED WITH THE STATEMENT OF WORK FROM WHICH SUCH LIABILITY AROSE (“LIABILITY CAP”), EXCEPT IN CASES OF BREACHES OF SECTIONS 6, 7
OR 8 WHERE EACH PARTY’S TOTAL LIABILITY SHALL BE LIMITED TO TWICE THE LIABILITY CAP. THE PARTIES AGREE THAT THE FOREGOING REPRESENTS A REASONABLE ALLOCATION OF THE RISK ASSOCIATED WITH THIS AGREEMENT IN LIGHT OF THE FEES TO BE SPECIFIED IN THE
STATEMENT OF WORK. 
 12. GENERAL PROVISIONS 
 12.1 No Assignment. Neither party may assign its rights or obligations under this Agreement or any SOW, in whole or in part, to a
third party without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, Tower may assign this Agreement to Tower USA. Further, Tower may make the benefits hereof
available to any entity that succeeds to the business of a particular Tower foundry to the extent such benefit is only associated with the operations of such foundry, subject to the approval of Alien, not to be unreasonably withheld. Any assignment
or attempted assignment in violation of this Section 12.1 shall be null and void. 
 12.2 Entire Agreement;
Amendment. This Agreement, together with its Exhibits, any Statements of Work and Change Orders, constitutes the entire agreement between the parties relating to the subject matter hereof and supersedes all prior agreements, communications, and
statements, whether written or oral, between the parties pertaining to such subject matter. Neither 

  

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the Commission. 

 15 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 
this Agreement nor any Statement of Work may be modified, changed or amended except by a writing executed by both parties. 
 12.3 Remedies; Waiver. The remedies provided herein are not exclusive, and the party suffering from a breach or default of this
Agreement may pursue all other remedies, both legal and equitable, alternatively or cumulatively. The failure or delay of either party in enforcing any of its rights or remedies under this Agreement shall not be construed to be a waiver of such
right or remedy with respect to any other breach or failure by the other party. 
 12.4 Force Majeure. Neither party
shall be liable for any delay or failure to perform its obligations hereunder resulting from any cause beyond such party’s reasonable control, including but not limited to acts of God, weather, fire, explosions, floods, strikes, accidents,
wars, terrorist attacks or threats thereof, riots or civil disturbances, acts of government, delays by suppliers or material shortages, power outages, or dangerous conditions that pose a threat to either party’s personnel (each, a “Force
Majeure Event”), but only to the extent such Force Majeure Event is beyond such party’s reasonable control. Scheduled performance dates set forth in a Statement of Work shall be reasonably extended by any such cause. 
 12.5 Choice of Law. This Agreement shall be governed and construed in accordance with the laws of the State of California, USA,
excluding its conflicts of law provisions. The parties agree that the United Nations Convention 012 Contracts for the International Sale of Goods shall not apply. 
 12.6 Dispute Resolution. Except as set forth below, the parties will attempt to settle ally claim or controversy arising out of or
relating to this Agreement through consultation and negotiation in good faith and a spirit of mutual cooperation, If those attempts fail, the dispute will be mediated by a mutually acceptable mediator to be chosen by the parties within 45 days after
written notice by one of the parties demanding mediation. Neither party may unreasonably withhold its consent to the selection of a mediator, and the parties will share the cost of the mediation equally. Any dispute that has not been resolved
through negotiation or mediation within six (6) months of the date of the initial demand by either party may then be the subject of judicial proceedings in the appropriate state or federal court in Santa Clara County, California. In the event
of such judicial proceedings or other adversary proceeding, the parties submit to the exclusive personal jurisdiction of, and venue in, the federal and state courts in the State of California and expressly waive any objection thereto.
Notwithstanding anything to the contrary in this Section 12.6, either party may at any time seek judicial relief in any court of competent jurisdiction to enforce its rights with respect to the protection of such party’s Confidential
Information or Intellectual Property Rights hereunder. In any judicial proceeding relating to this Agreement, each party hereby waives its right to a jury trial and agrees that such proceeding shall be tried by a judge without a jury. The use of
alternative dispute resolution will not be construed under the doctrine of laches, waiver or estoppel to affect adversely the rights of either party, and defenses based on the statute of limitations shall be tolled during the alternative dispute
resolution process unless prohibited by applicable law. 
  

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the Commission. 

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 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 12.7 Compliance with Laws. Each party will comply with all applicable laws and
regulations governing its activities under this Agreement, including without limitation the export control laws and regulations of the United States with respect to any Confidential Information and/or technical data licensed, delivered, or to which
a party is provided access under this Agreement. The parties agree to cooperate with respect to export compliance, and to execute such export-related documents as the other party may reasonably request. 
 12.8 Interpretation of Agreement. Where this Agreement states that a party “will” or “shall” perform in some
manner or otherwise act or omit to act, it means that the party is legally obligated to do so in accordance with this Agreement. The captions, titles and headings, and table of contents, included in this Agreement are for convenience and reference
only, and do not affect this Agreement’s construction or interpretation. When a reference is made in this Agreement to a Section, Exhibit or a SOW, such reference will be to a Section, Exhibit or a SOW to, this Agreement unless otherwise
indicated. The words “including,” “includes,” or “include” are to be read as listing non-exclusive examples of the matters referred to, whether or not words such as “without limitation” or
“but not limited to” are used in each instance 
 12.9 Notice. All notices required under this
Agreement shall be in writing and addressed to the parties at their respective addresses set forth below. Notices may be delivered personally or sent by telex, courier, facsimile, or registered mail, postage prepaid and shall be effective on the
date of receipt at that address: 
  

			
	 To Tower:
 Tower Semiconductor Ltd.
 Ramat Gavriel Industry Zone
 Migdal Haemek, 23105 Israel
 Attn: Yossi Netzer
 Fax: +972-4-654-7788
	  	 To Alien
 Alien Technology Corporation
 18220 Butterfield Blvd
 Morgan Hill, California 95037, USA
 Attn: Legal Department
 Fax: 408-782-3912

		
	with a copy to:	  	with a copy to:
		
	 Tower Semiconductor USA
 2350 Mission College
Blvd.
 Suite 500
 Santa Clara, CA 95054
 Attn: Ishai Naveh
 Fax: 408-969-9831
	  	 Alien Technology Corporation
 18220 Butterfield
Blvd
 Morgan Hill, California 95037, USA
 Attn: Chief Operating
Officer

 12.10 Severability. If any provision of this Agreement is held by a court or
tribunal of competent jurisdiction to be invalid or unenforceable, such provision shall be enforced to the maximum extent permissible and the remaining portions of this Agreement shall remain in full force and effect. 
  

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 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 12.11 Counterparts. This Agreement may be executed in one or more
counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 
 12.12 No Obligation for Production Quantities. Neither party is making any commitment or assuming any obligation for production quantities of RFID ICs under this Agreement; any such commitment can only be authorized by the parties in
a separate written supply agreement that is executed by the parties. 
  

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 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 IN WITNESS WHEREOF, the undersigned have executed this Agreement effective as of the date first set
forth above. 
  

									
	 TOWER SEMICONDUCTOR LTD.
	 		 	 ALIEN TECHNOLOGY CORPORATION

					
	 By: 
	 	 /s/ Doron Simon
	 		 	 By: 
	 	 /s/ John Payne

					
	 Its: 
	 	 VP Mkt.
	 		 	 Its: 
	 	 Chief Operating Officer

	 FAX NUMBER FOR NOTICES: +972-4-654-7788
	 		 	 FAX NUMBER FOR NOTICES: 408-782-3912

  

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 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT A 
 FORM OF STATEMENT OF WORK 
 [***] INTEGRATED CIRCUITS JOINT DEVELOPMENT 
 STATEMENT OF WORK No. 1 
 Tower
Semiconductor Ltd. (“Tower”) agrees to perform the Services described below for Alien Technology Corporation (“Alien”), subject to the terms and conditions set forth in that certain IC Technology Development Agreement by and
between Tower and Alien dated as of 27 May 2005, and as set forth below, and Alien agrees to pay Tower for the Services performed hereunder, as specified below. 
 1. SCOPE OF WORK 
 1.1 All work and services pertain to development of [***] operating
in the [***]. 
 1.2 Product Description: The IC is [***]. RF energy transmitted by an RFID reader is received by the
tag antenna and coupled to the IC to provide operating power. Upon receipt of valid commands from the reader, the IC responds by modulating the antenna to reflect incident RF power to the reader. Anti-collision circuitry in the IC enables RFID
readers to communicate with all individual tags within a group of tags. Non-volatile memory enables users to store unique data into tags at the point of application. 
 1.3 General Description of the development tasks: 
 1.3.1 Process Customization (no charge) - Tower will customize its [***] for the manufacture of UHF RFID ICs. 
 1.3.2 Device Development (no charge) - Tower will develop [***] for application in UHF RFID ICs. The requisite process modules will
be incorporated into Tower’s [***] and the [***] qualified for production. 
 1.3.3 Digital Backend Design - Tower
will conduct silicon implementation of digital circuitry. Task includes synthesis, place and route, physical verification and back annotation of the layout parasitics for Alien’s [***]. 
 1.3.4 Silicon Fabrication - Tower will provide wafer processing services. Full custom mask sets and shuttle runs are anticipated.

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 1.3.5 Third Party Assistance (no charge) - Tower will support [***] in
development of [***] for use in RFID ICs. Expected support is in the following areas: 
  

	 	•	 	Consultation regarding Tower’s [***] process. 

  

	 	•	 	Design reviews. 

  

	 	•	 	Silicon fabrication utilizing Tower’s shuttle service. 

 2. PROJECT MILESTONES & COMPLETION DATES 
  

					
	 ID
	  	 Milestone Description
	  	Due Date
	 1
	  	[***]	  	[***]
	 2
	  	[***]	  	[***]
	 3
	  	[***]	  	[***]
	 5
	  	[***]	  	[***]
	 6
	  	[***]	  	[***]
	 7
	  	[***]	  	[***]
	 8
	  	[***]	  	[***]
	 9
	  	[***]	  	[***]
	 10
	  	[***]	  	[***]
	 11
	  	[***]	  	[***]
	 12
	  	[***]	  	[***]
	 13
	  	[***]	  	[***]
	 14
	  	[***]	  	[***]
	 15
	  	[***]	  	[***]
	 16
	  	[***]	  	[***]
	 17
	  	[***]	  	[***]
	 18
	  	[***]	  	[***]
	 19
	  	[***]	  	[***]
	 20
	  	[***]	  	[***]
	 21
	  	[***]	  	[***]
	 22
	  	[***]	  	[***]
	 23
	  	[***]	  	[***]
	 24
	  	[***]	  	[***]
	 25
	  	[***]	  	[***]
	 26
	  	[***]	  	[***]
	 27
	  	[***]	  	[***]
	 28
	  	[***]	  	[***]
	 29
	  	[***]	  	[***]
	 30
	  	[***]	  	[***]

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -2- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 3. PARTY RESPONSIBILITIES 
 3.1 Tower will be primarily responsible for: 
 3.1.1 [***] development 
 3.1.2 Basic device test structures and test structure
characterization 
 3.1.3 Design support, including physical and electrical design rules, DRC/LVS runsets, SPICE models,
design kits, and RCE extraction runsets; 
 3.1.4 [***] protection consulting 
 3.1.5 Digital back-end design (pending [***] characterization of standard cells library by Alien) 
 3.1.6 Wafer fabrication 
 3.1.7 Process-control monitor (PCM) scribe-line test chip design and characterization, and electrical test for [***] of finished wafers 
 3.1.8 Process quality and reliability testing and assurance 
 3.1.9 Sort results, Product wafer probe, upon agreement with Alien. 
 3.1.10 Yield improvement activity after product ramp 
 3.2 Alien will be primarily responsible for: 
 3.2.1 RF/analog design & layout (per product definition) 
 3.2.2 [***] protection
development 
 3.2.3 Digital front-end design 
 3.2.4 Library timing characterization for [***] operation 
 3.2.5 [***] from [***] ([***]) 
 3.2.6 Chip elements integration, merge, closure and sign-off 
 3.2.7 Chip assembly &
verification 
 3.2.8 Process compatibility of NanoBlock ICs to Tower’s process 
 3.2.9 Alien-specific test vehicle design (SLE) 
 3.2.10 Test vehicle testing and characterization 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -3- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 3.2.11 Wafer sort program: Product test program specification, development/debug,
release to production, and production test hardware per agreement. 
 3.2.12 Product verification and testing 
 3.2.13 Product quality and reliability testing and assurance 
 3.2.14 Product qualification, including any necessary hardware/software and analysis services 
 3.2.15 Package-level and device characterization 
 3.2.16 Reports: yield results, FT data, product qualification data 
 4. DELIVERABLES 
 4.1
Tower deliverables : 
 4.1.1 [***] from each shuttle run 
 4.1.2 SLE wafers run for Alien mfg process development 
  

	 	•	 	NanoBlock wafer map 

  

	 	•	 	Create specific process to comply with Alien special street configuration 

  

	 	•	 	Define additional required masks to comply with Alien special street 

  

	 	•	 	Define specific rules to comply with RFID edge protection during NanoBlock fabrication 

 4.1.3 EEPROM test chips from shuttle run (depends on [***] permission) 
 4.1.4 Final [***] design kit (see exhibit A-1) 
  

	 	•	 	[***] design rules 

  

	 	•	 	[***] technology files for Calibre and X-Calibre 

  

	 	•	 	[***] SPICE models 

  

	 	•	 	[***] specifications, GDSII and SPICE models 

  

	 	•	 	[***] characterization report 

 4.1.5 [***]
design - consult with possible [***] structures and reference designs that comply with RFID constrains 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -4- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 4.1.6 Specific technology for Higgs project (see exhibit A-1) 
  

	 	•	 	Design under pad 

  

	 	•	 	Thin top metal 

  

	 	•	 	[***] 

  

	 	•	 	Streets protection 

  

	 	•	 	MIM for Thin top metal configuration 

 4.1.7 RFID chip silicon wafers 
 4.1.8 Design review attendance 
  

	 	•	 	EEPROM 

  

	 	•	 	RFID IC 

 4.1.9 [***] design 
  

	 	•	 	Synthesized gate netlist of digital block 

  

	 	•	 	GDS I1 database of digital block 

  

	 	•	 	Back annotated Gate-Level netlist (.v) and SDF 

  

	 	•	 	Extraction Data for PrimeTime (DSPF or SPEF) 

  

	 	•	 	CDL netlist of digital block 

  

	 	•	 	Verification report for digital block 

 4.2
Alien deliverables 
 4.2.1 [***] measurement 
 4.2.2 Analog/RF Test chip GDSII 
 4.2.3 ESD Test chip GDSII 
 4.2.4 Short loop Experiment (SLE) GDSII for mfg process
development 
 4.2.5 RFID chip GDS I1 database (DRC clean) 
  

	 	•	 	1 tape-out: 

  

	 	•	 	2nd tape-out: B/E masks only 

  

	 	•	 	3rd tape-out: 

 Alien will provide [***] at least one week
before tapeout to Tower, to allow sufficient time for an interactive work on the reticle and wafer map optimization. 
 4.2.6
[***] design 
  

	 	•	 	Cell characterization for [***] 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -5- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	 	•	 	Verilog code 

  

	 	•	 	Synthesis constraints 

  

	 	•	 	Place and route constraints 

  

	 	•	 	Verification review 

  

	 	•	 	Guidelines for spare gate insertion 

 5.
QUALIFICATION & PRODUCTION READINESS 
 5.1 Qualification 
 5.1.1 Technology qualification is based on [***]. 
 5.1.2 The RFID Product qualification will be conducted by Alien. The qualification report will be provided to Tower. 
 5.1.3 [***] module qualification is under Alien responsibility. 
 5.1.4 Assembly process (NanoBlock) qualification is under Alien responsibility. Tower will provide the required support to qualify product
assembly 
 5.2 Test 
 5.2.1 Sample sort methodology at EOL will be considered for process control at Tower 
 5.2.2
General guidelines 
  

	 	•	 	Test platform - Two options can be considered: Nextest Maverick, or an existing digital sort platform at Tower. 

  

	 	•	 	Sort wafer map to be determined according to prober limitations. 

  

	 	•	 	Sort program transfer and correlation exercise are still to be defined. 

  

	 	•	 	Final details are still to be defined and agreed. 

 6.
SPECIFICATIONS 
 6.1 RFID IC: 
  

					
	6.1.1	  	Chip size:	  	[***]
			
	 6.1.2
	  	RF operating frequency:	  	[***]
			
	 6.1.3
	  	Min. operating Vdd:	  	[***]
			
	 6.1.4
	  	Max. Operating Vdd:	  	[***]

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -6- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 6.1.5 Idd at min. operating Vdd: [***] 
 6.1.6 Operating temperature: [***] 
 6.2 Memory: 
 6.2.1 RFID [***] Specification No. [***] 
 6.2.2 Alien-[***] SOW: [***] 
 6.2.3 [***] Qualification Plan as referenced in [***] 
 6.3 [***] 
 6.3.1 [***] specifications @ Room Temperature: [***] 
 6.3.2 [***] specifications @ Room Temperature: [***] 
 Notes: 
  

	 	•	 	For each [***], the monitor is the calculated value from measurements taken on a [***] array 

  

	 	•	 	[***] specifications will be finalized after sufficient PCM data collection 

  

	 	•	 	Tower [***] SPICE models adequately capture total anticipated device variation with process and temperature for the above parameters 

 6.4 [***] and Latch up goals for design (Alien’s responsibility) 
 6.4.1 [***] 
 6.4.2 [***] 
 6.4.3 [***] (relevant in Alien RFID strap package) 
 6.4.4 [***] 
 7. PROJECT
MANAGEMENT 
 7.1 Project management group consists of Tower’s Program Manager, Alien’s Program Manager, and
individuals, Focal Points, responsible for major tasks of the project. In support of successful task completion, this group is responsible for: 
  

	 	•	 	Coordinating the effort of the respective team members per project requirements. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -7- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	 	•	 	Making the required information, code, data and knowledge available to the respective parties per the project requirements. 

  

	 	•	 	Monitoring project progress and impact of any issues that may arise during the project execution 

  

	 	•	 	Coordinating events during the change resolution process. 

  

	 	•	 	Arranging periodic status meetings and project reviews at the completion of each major milestone / deliverable or in case an escalation is required 

 7.2 Project Contacts 
  

					
	 Project Contact Position
	  	 Name
	  	 Company

	Project Manager	  	 Yosi Netzer
 yosin@towersemi.com
 972-4-6506486
	  	Tower (Israel)
			
	Logistics & Program Management	  	 Eyal Bendory
 eyalbe@towersemi.com
 972-4-6506649
	  	Tower (Israel)
			
	Technology Line manager	  	 Isahi Naveh
 ishai@towersemi.com
 (408) 330-6898
	  	Tower (USA)
			
	Sales	  	 Waqas Khan
 Waqas@nxs.com
 (510) 364-2183
	  	Tower (USA)
			
	Project Sponsor	  	 Iszhak Edrei
 iszhake@towersemi.com
 972-4-6506577
	  	Tower (Israel)
			
	Project Manager	  	 John Rolin
 jrolin@alientechnology.com
 (408) 782-3934
	  	Alien
			
	Manufacturing Process Lead	  	 Eric Snyder
 esnyder@alientechnology.com
 (408) 782-3993
	  	Alien
			
	Business Interface	  	 John Payne
 jpayne@alientechnology.com
 (408) 782-3921
	  	Alien
			
	Project Sponsor	  	 Jim Atherton
 jatherton@alientechnology.com

(408) 782-3924
	  	Alien

 7.3 Focal persons will be assigned in both parties for the following areas:

 7.3.1 DesignICAD and TI0 procedure 
 7.3.2 [***] concepts, simulations and design 
 7.3.3 Characterization (CZ) of product & [***] test-chips 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -8- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 7.3.4 Process engineering (around the NanoBlock module and its implications)

 7.3.5 Product testing 
 7.4 Escalation 
 7.4.1 The Program Managers of each party will act as the overall
point-of-contact in resolving any consulting execution or delivery issues between the parties. 
 7.4.2 When the specific
project manager is not able to provide and/or achieve resolution, the matter will be escalated to the project sponsors, in order to decide on further resolution steps. 
 7.4.3 In a case of a persistent unresolved matters problem or a crash, a special meeting will be held with the relevant engineering and
managerial resources from both parties at a time and place mutually greed upon. 
 8. FEES AND EXPENSES 
 8.1 NanoBlock SLE 
  

	 	•	 	N/A 

 8.2 Multi-project shuttle 

 

	 	•	 	[***] 

  

	 	•	 	[***] 

 8.3 [***] design 
  

	 	•	 	[***] 

 8.4 Full custom fabrication run

  

	 	•	 	[***] 

  

	 	•	 	[***] 

 9. REFERENCE DOCUMENTS 
  

	 	•	 	JDA - IC Technology Development Agreement 

  

	 	•	 	Exhibits - B, C, D 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -9- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 10. ADDITIONAL TERMS: 
 10.1 [***] - as per the JDA 
 11. APPROVAL 
 This Statement of Work has been entered into this 27th day of May, 2005. 
 Each party hereby acknowledge that they have read and understand this Statement of Work 
  

									
	TOWER SEMICONDUCTOR LTD.	 		 	ALIEN TECHNOLOGY CORPORATION:
					
	By:	 	/s/ Doron Simon	 		 	By:	 	/s/ John Payne
		 	Doron Simon	 		 		 	John Payne
					
	Its:	 	VP Mkt.	 		 	Its:	 	Chief Operating Officer

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -10- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT B 
 APPENDIX TO STATEMENT OF WORK 
 TOWER PROCESS & TECHNOLOGY IMPLEMENTATION CHECKLIST

 [***] 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT C 
 APPENDIX TO STATEMENT OF WORK 
 FORM OF CHANGE ORDER 
 Tower Semiconductor Ltd. (“Tower”) and Alien Technology Corporation (“Alien”), subject to the terms and conditions set forth in that
certain IC Technology Development Agreement by and between Tower and Alien dated as of 27 May 2005, hereby agree to modify Statement of Work No. 1 entered into there under and dated as of 27 May, 2005 (the “Statement of
Work”) as follows: 
 (attach other sheets if necessary) 
 Other than as modified herein, or as modified by other Change Orders with respect to the Statement of Work that have been or may be entered into between Alien and Tower, the Statement of Work remains in full force and
effect. 
 The parties have entered into this Change Order as of _______________, 200___. 
  

									
	 TOWER SEMICONDUCTOR LTD.
	 		 	 ALIEN TECHNOLOGY CORPORATION:

		 		 	  
					
	 By:
	 	  	 		 	 By:
	 	  
		 	 [name]
	 		 		 	 [Insert name]

					
	 Its:
	 	  	 		 	 Its:
	 	  

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 -2- 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT D 
 APPENDIX TO STATEMENT OF WORK 
 LIST OF INTELLECTUAL PROPERTY RIGHTS AND LICENSES 

 

	1.	Tower 

  

	 	1.1	[***] 

  

	 	1.2	[***] 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 [***] STATEMENT OF WORK 
 WHEREAS, Alien and Tower have entered into that certain IC Technology Development Agreement, dated the 27th of May 2005 (“Agreement”), and the parties desire to enter into this [***] Statement of Work as a statement of work to that Agreement (as amended
hereby) for Alien’s [***] product; and 
 WHEREAS, in consideration of Tower performing the development activities under this Statement of Work intended
for use as part of Alien’s [***] product, and subject to Alien and Tower agreeing upon [***] for Tower to supply wafers that include Alien’s [***] product, Alien has (a) committed to [***] (“Tower Outsourced Products”) at
Tower, [***], and (b) granted to Tower [***] with respect to the Alien’s manufacturing needs of [***] of the Tower Outsourced Products (i.e., [***]) such right to be exercised as set forth in Exhibit C hereto. The parties will make
commercially reasonable diligent efforts in good faith to negotiate and conclude a foundry agreement for the supply of IC products to Alien by Tower by [***]. 
 Project Name: [***] 
 STATEMENT OF WORK No. 2 
 Tower Semiconductor Ltd. (“Tower”) agrees to perform the Services described below for Alien Technology Corporation (“Alien”), subject to the terms and
conditions set forth in the Agreement, and as set forth below, and Alien agrees to pay Tower for the Services performed hereunder, as specified below. 
 SCOPE OF WORK 
  

	1	Product Description: 

 Based on Tower’s proprietary
patented [***], Tower will design a [***] module in accordance with the Specifications attached to this SOW (the “Module”), and make commercial reasonable best efforts to meet the requirements of such specifications with the purpose of
integrating such Module into a product of Alien (the “Product”). The main features of the Module are: [***]; very low power consumption, very small area, and robustness [***] defined in the Specifications. 
  

	 	1.1	General Description of the development tasks required for the Module: 

  

	 	1.1.1	 Process – The Module will be based on the same Tower [***] process flow that is used for the current Alien products under development, as specified in reference 1.
[***] 

  

	 	1.1.2	 Device Development 

 The [***] cell in the
Module is based on Tower’s [***]. The cell, [***], will be designed to meet the Specification. Supporting devices may be developed, as needed. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	 	1.1.3	 Design. 

 Tower will design: 
  

	 	1.1.3.1	A test chip for the [***], which will serve as a development platform for cell design changes and investigating the optimal work conditions for the [***] cells.

  

	 	1.1.3.2	The Module, including [***]. Tower will deliver to Alien the EDA views specified in Section 4.1.1 necessary to enable smooth integration of the Module into Alien’s RFID
product. 

  

	 	1.1.3.3	A test chip for the Module ([***] – module level test chip) to be tested, verified and qualified by Tower to prove the Module functionality and reliability.

  

	 	1.1.4 	Silicon Fabrication and Testing 

 Tower will
fabricate on its manufacturing process (placing the test chips on a “shuttle” reticle) and test both the [***] and the [***]. 
  

	2	PROJECT MILESTONES & ESTIMATED COMPLETION DATES 

  

							
	ID	  	 Milestone
	  	Estimated Due Date
(Relative)	 	Estimated Due
Date
				
	1	  	 [***]
	  	[***]	 	[***]
				
	2	  	 [***]
	  	[***]	 	[***]
				
	3	  	 [***]
	  	[***]	 	[***]
				
	4	  	 [***]
	  	[***]	 	[***]
				
	5	  	 [***]
	  	[***]	 	[***]
				
	6	  	 [***]
	  	[***]	 	[***]
				
	7	  	 [***]
	  	[***]	 	[***]
				
	8	  	 [***]
	  	[***]	 	[***]
				
	9	  	 [***]
	  	[***]	 	[***]
				
	10	  	 [***]
	  	[***]	 	[***]
				
	11	  	 [***]
	  	[***]	 	[***]
				
	12	  	 [***]
	  	[***]	 	[***]

 Comment: The list above contains the major milestones, detailed project planning will be established during
project kick-off. For purposes of this SOW, (i) “T0” means the Effective Date of this SOW, and (ii) “W” means calendar week. 
 Without limiting other remedies available, in the event Tower fails to meet any of the “Key Milestones” (as defined below) within [***] days after its Estimated Due Date in the chart listed above without any fault on Alien’s
part, Alien may terminate this SOW by delivery of written notice to Tower, and in such case the provisions of Section 9.3(c) of the Agreement (Effect of Termination Prior to Completion of the Services) shall apply. [***]. In no event of
termination by Alien will Tower be entitled to fees and/or expenses that are in excess of the amount set forth in Section 8 of this SOW. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	3	PARTY RESPONSIBILITIES 

  

	 	3.1	Tower will be primarily responsible for: 

  

	 	3.1.1 	Deliver appropriate device test chips and related electrical test programs for the Module production monitoring 

  

	 	3.1.2 	Designing, testing and characterizing an array level test-chip of [***]. 

  

	 	3.1.3 	Participating in the following inter-company reviews: 

  

	 	(a)	Preliminary and final design reviews, to be held prior to [***]. 

  

	 	(b)	Layout review to ensure compatibility with Product requirements, to be held prior to [***]. 

  

	 	3.1.4 	Designing the Module and a test chip and creating the following [***] views for the Module: data Sheet, behavioral model, integration guidelines, physical abstract (LEF), timing
views, and antenna LEF. 

  

	 	3.1.5 	Testing, characterizing and qualifying the test chip for the Module according to agreed upon characterization and qualification plans 

  

	 	3.2	Alien will be primarily responsible for: 

  

	 	3.2.1 	Defining the Specifications for the Module 

  

	 	3.2.2 	Defining the [***] used in the Alien tool flow 

  

	 	3.2.3 	Integrating the Module in the Product 

  

	 	3.2.4 	Participating in the following inter-company reviews: 

  

	 	(a)	Preliminary and final design reviews, [***]. 

  

	 	(b)	Layout review to ensure compatibility with Product requirements, [***]. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	4	DELIVERABLES 

  

	 	4.1	Tower will provide the following deliverables (“Tower Deliverables”) per the estimated schedule listed in Section 2 of the SOW: 

  

	 	4.1.1	 The following [***] for the Module: 

 Module Data
Sheet 
 Behavioral Model 
 Integration Guidelines 
 GDS abstract View 
 GDS database View 
 Timing View 
 Antenna LEF 
  

	 	4.1.2 	The following characterization and qualification reports: 

  

	 	4.1.2.1	 [***] report 

  

	 	4.1.2.2	 [***] characterization report 

  

	 	4.1.2.3	 Module test chip characterization report 

  

	 	4.1.2.4	 Module Qualification report 

  

	 	4.2	Alien will provide the following deliverables (“Alien Deliverables”): 

  

	 	4.2.1 	Module Specifications 

  

	5	Acceptance  

  

	 	5.1	Characterization 

  

	 	5.1.1 	Module characterization plan is attached as Exhibit D 

  

	 	5.2	Qualification 

  

	 	5.2.1 	Module Qualification plan is attached as Exhibit E 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	6	SPECIFICATION & DATASHEET 

 Module
Specifications 
 [***] 
 Preliminary Module Datasheet 
 [***] 
 The parties agree that Alien may request within 2 weeks of the Effective Date of this SOW to change the Module [***] without incurring material impact on the project schedule and datasheet. As of the Effective Date, Alien hereby requests
that Tower change the Module [***], and Tower acknowledges such request. 
  

	7	PROJECT MANAGEMENT 

  

	 	7.1	Project management group consists of Tower’s Program Manager, Alien’s Program Manager, and individuals, Focal Points, responsible for major tasks of the project.

 In support of successful task completion, this group is responsible for: 
  

	 	•	 	Coordinating the effort of the respective team members per project requirements. 

  

	 	•	 	Making the required information, code, data and knowledge available to the respective parties per the project requirements. 

  

	 	•	 	Monitoring project progress and impact of any issues that may arise during the project execution 

  

	 	•	 	Coordinating events during the change resolution process. 

  

	 	•	 	Arranging periodic status meetings and project reviews at the completion of each major milestone / deliverable or in case an escalation is required 

  

	 	7.2	Project Contacts 

  

					
	 Project Contact Position
	  	 Name
	  	 Company

	 Project Manager
	  	 Limor Kendler Levy
	  	 Tower

			
	 Sales / Marketing
	  	 Ishai Naveh
	  	 Tower

			
	 Project Sponsor
	  	 Yossi Netzer
	  	 Tower

			
	 Project Manager
	  	 James Atherton
	  	 Alien

			
	 Business Interface
	  	 John Payne
	  	 Alien

			
	 Project Sponsor
	  	Natalino Camilleri	  	Alien

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	 	7.3	Escalation 

  

	 	7.3.1 	The Program Managers of each party will act as the overall point-of-contact in resolving any consulting execution or delivery issues between the parties. 

 

	 	7.3.2 	When the specific project manager is not able to provide and/or achieve resolution, the matter will be escalated to the project sponsors, in order to decide on further resolution
steps. 

  

	 	7.3.3 	In a case of a persistent unresolved matters problem or a crash, a special meeting will be held with the relevant engineering and managerial resources from both parties at a time
and place mutually agreed upon. 

  

	 	7.4	Inspection 

  

	 	7.4.1 	Upon Alien’s request, Tower shall provide detailed information, reports and materials requested by Alien that describe Tower’s progress towards any Milestone and/or with
respect to any Tower Deliverables. 

  

	 	7.4.2 	Upon Alien’s request, Tower shall provide access to Tower’s facilities and other locations where Tower activities hereunder are being performed for the purpose of
verifying Tower’s progress towards any Milestone or any Tower Deliverable. 

  

	8	FEES AND EXPENSES 

 For the overall
development listed in the SOW, subject to the terms and conditions herein, Alien will pay Tower [***] in accordance with the following payment schedule: 
  

					
	 Milestone
	  	 Percent of Payment
	  	 Comments:

	 [***]
	  	 [***]
	  	 [***]

	 [***]
	  	 [***]
	  	
	 [***]
	  	 [***]
	  	
	 [***]
	  	 [***]
	  	

  

	9	REFERENCE DOCUMENTS 

  

	 	9.1	“Agreement” (as defined in the opening paragraph to this SOW) 

  

	 	9.2	“Previous SOW” 

  

	 	9.3	“Specifications” ([***]) 

  

	 	9.4	Module Characterization plan – Exhibit D 

  

	 	9.5	Module Qualification plan – Exhibit E 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	10	OWNERSHIP, LICENSE & CONFIDENTIALITY 

  

	 	10.1 	Notwithstanding anything in Section 6 of the Agreement, Tower shall solely own the Module including all Tower Deliverables, devices, circuitry and components.

  

	 	10.2 	Subject to the payment of the fees listed in Section 8 of this SOW, Alien is granted the licenses listed in Section 7.2 of the Agreement with respect to the Tower
Deliverables listed in Section 4 of this SOW. Except as expressly set forth in this SOW and in the Agreement, Alien may not disclose, distribute or modify the Module and any of the Tower Deliverables. The manufacture of any integrated circuits
containing either any portion of the Module and any of the Tower Deliverables or any [***] that is derived from the Module, the Tower Deliverables or the datasheet (except to the extent reflecting the Specifications) or other deliverables provided
by Tower under this Agreement, may occur only at Tower’s manufacturing facilities (or as otherwise approved by Tower in writing). In accordance with the pre-existing confidentiality provisions between the parties, the Module and any of the
Tower Deliverables are Confidential Information of Tower and may not be disclosed to any third parties and may be used only as authorized hereunder and only by Alien employees with a need to know in order to design and layout integrated circuits
using the Module and any of the Tower Deliverables solely to be manufactured at Tower’s manufacturing facilities (provided however that Alien’s distribution RFID products, and related marketing and sales activities related thereto, that
include the Module and any of the Tower Deliverables shall not constitute breach of Tower’s Confidential Information). Certain elements of the Module and any of the Tower Deliverables may be provided to Alien in files/data formatted for use
with or by certain third party tools/products. No license to any third party tools/products is granted to Alien by Tower under this Agreement. Alien must ensure that it has the necessary licenses and rights to use the third party tools/products
necessary to utilize the Module and any of the Tower Deliverables. 

  

	 	10.3 	Each of the parties acknowledge that the other has contributed Confidential Information to both the Module Specification and the Module Data Sheet, and hereby agree upon the
following treatment of such Confidential Information: 

  

	 	10.3.1	 Tower agrees that it will not disclose the Alien Confidential Information in the Module Specification to any third party except as expressly permitted by the terms of the
Agreement concerning the treatment of Confidential Information. Tower agrees that Alien may disclose the Tower Confidential Information in the Module Specification to third parties under a nondisclosure agreement at least as protective of
Tower’s interests as the terms of the Agreement concerning the treatment of Confidential Information, and that any terms in the Agreement or this SOW notwithstanding, Alien may retain the Tower Confidential Information in the Module
Specification following the termination of the Agreement or this SOW. 

  

	 	10.3.2	  Alien agrees that it will not disclose the Tower Confidential Information in the Module Data Sheet to any third party except as expressly permitted by the

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	 	 
terms of the Agreement concerning the treatment of Confidential Information. Alien agrees that Tower may disclose the Alien Confidential Information in the
Module Data Sheet to third parties under a nondisclosure agreement at least as protective of Alien’s interests as the terms of the Agreement concerning the treatment of Confidential Information, and that any terms in the Agreement or this SOW
notwithstanding, Tower may retain the Alien Confidential Information in the Module Data Sheet following the termination of the Agreement or this SOW. 

  

	11	ADDITIONAL TERMS: 

  

	 	11.1	Each party represents that it has the right to enter into this SOW 

  

	 	11.2	Indemnification by Tower. Subject to the terms and conditions of the Agreement and this SOW, including the provisions of Sections 10 and 11 of the Agreement and this
Section 11 of the SOW, Tower shall defend, or at its option, settle any claim, suit or proceeding brought by a third party against Alien or its officers, directors or employees (an “Infringement Proceeding”) to the extent such
Infringement Proceeding is based on any claim that the Tower Deliverables directly infringes or misappropriates any copyright, trade secret or U.S. patent, and shall pay any settlement amounts or damages finally awarded in such Infringement
Proceeding; provided, however, that Alien (i) promptly notifies Tower in writing of such Infringement Proceeding; (ii) gives Tower sole control over the defense and/or settlement of such Infringement Proceeding; (iii) does not make
any admission of liability nor settle or otherwise compromise any such Infringement Proceeding without Tower’s prior written consent; (iv) reasonably cooperates and provides Tower with all available information, assistance, and authority
to defend or settle the Infringement Proceeding. Tower shall not enter into any settlement or consent decree that results in an admission of liability by Alien or the entry of injunctive relief against Alien without Alien’s prior written
consent, which consent shall not be unreasonably withheld or delayed. Tower shall not be liable for any costs, expenses, damages or fees incurred by Alien in defending such action or claim unless authorized in advance in writing by Tower

  

	 	11.3	Mitigation. If the use of any Tower Deliverable is, or in Tower’s opinion is likely to become, enjoined or the subject of an Infringement Proceeding, Tower may, and in
the event the use of any Tower Deliverable is enjoined, Tower shall: (a) obtain, at no cost to Alien, the right to continue the use such Tower Deliverable; or (b) replace or modify such Tower Deliverable, at no cost to Alien, with a
non-infringing Tower Deliverable; provided that if (c) Tower cannot obtain for Alien the right to use such Tower Deliverable on a commercially reasonable basis, and cannot on a commercially reasonable basis replace or modify such Tower
Deliverable to make it non-infringing, Tower may terminate this SOW and refund the fees paid by Alien for the applicable Tower Deliverable(s), at which point Alien shall cease use of the applicable Tower Deliverable. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	 	11.4	Exclusions. Tower shall not be responsible and have no liability with respect to any Infringement Proceeding, or portion thereof, to the extent it is based on or results
from: (i) any combination, operation or use of any Tower Deliverable with materials, manufacturing or equipment not furnished by Tower; (ii) Tower’s compliance with Alien’s written direction designs, Specifications or
instructions, including authorized use of Alien technical information; (iii) any act, omission, design and/or Specification of Alien, including any modification or unauthorized or unlicensed use of the Tower Deliverables by Alien or its
customers. 

  

	 	11.5	Sole Remedy. TOWER’S OBLIGATIONS AND ALIEN’S RIGHTS UNDER SECTIONS 11.1, 11.2 AND 11.3 ARE TOWER’S SOLE OBLIGATIONS AND ALIEN’S SOLE REMEDIES, ARISING OUT
OF OR RELATED TO INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS. 

  

	 	11.6	Indemnification by Alien. Subject to the terms and conditions of the Agreement and this SOW, including the provisions of Sections 10 and 11 of the Agreement and this Section
11 of the SOW, Alien shall defend, or at its option, settle any claim, suit or proceeding brought by a third party against Tower or its officers, directors or employees (an “Infringement Proceeding”) to the extent such Infringement
Proceeding is based on any claim that either the Alien Deliverables or the Tower Deliverables, as a result of a modification by Alien or combination of the Tower Deliverables with other equipment, technology or software not purchased or licensed
from Tower, directly infringes or misappropriates any copyright, trade secret or U.S. patent, and shall pay any settlement amounts or damages finally awarded in such Infringement Proceeding; provided, however, that Alien (i) promptly notifies Tower
in writing of such Infringement Proceeding; (ii) gives Tower sole control over the defense and/or settlement of such Infringement Proceeding; (iii) does not make any admission of liability nor settle or otherwise compromise any such Infringement
Proceeding without Tower’s prior written consent; (iv) reasonably cooperates and provides Tower with all available information, assistance, and authority to defend or settle the Infringement Proceeding. Tower shall not enter into any settlement
or consent decree that results in an admission of liability by Alien or the entry of injunctive relief against Alien without Alien’s prior written consent, which consent shall not be unreasonably withheld or delayed. Tower shall not be liable
for any costs, expenses, damages or fees incurred by Alien in defending such action or claim unless authorized in advance in writing by Tower. ALIEN’S OBLIGATIONS AND TOWER’S RIGHTS UNDER SECTIONS 11.6 ARE ALIEN’S SOLE OBLIGATIONS AND
TOWER’S SOLE REMEDIES, ARISING OUT OF OR RELATED TO INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	 	11.7	Except for Alien’s benefit as specified in the Agreement and any SOW related thereto, [***]. The limitation set forth in the preceding sentence shall survive expiration of the
Agreement and / or this SOW, but shall not survive in the event the Agreement or this SOW is terminated by either party. 

  

	 	11.8	The Term of the Agreement is extended until [***]; provided, however, that those elements of this SOW (including Exhibit C hereto) concerning the parties’ rights and
obligations with respect to the purchase and sale of Tower Outsourced Products shall extend until [***], as shall any terms which are required to survive the expiration of the Term in order for the parties to exercise such rights and fulfill such
obligations. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 APPROVAL 
 This Statement of Work has been entered into this 1st day of March, 2006 (the “Effective Date”). 
 Each party hereby acknowledge that
they have read and understand this Statement of Work 
  

									
	 TOWER SEMICONDUCTOR LTD.
	 		 	ALIEN TECHNOLOGY CORPORATION:
					
	BY:	 	 /s/ FRA DRUMM
	 		 	 BY:
	 	/s/ JOHN PAYNE
		 	Fra Drumm	 		 		 	John Payne
					
	ITS:	 	VP & GM TOWER USA	 		 	 ITS:
	 	CHIEF OPERATING OFFICER

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT A 
 APPENDIX TO STATEMENT OF WORK 
 TOWER PROCESS & TECHNOLOGY IMPLEMENTATION CHECKLIST

  

	1.	Technology Implementation Checklist: 

  

	 	1.1	Design Rules Spice models and [***] 

  

	 	1.2	Module specific Design Rules and [***] will be defined at a later stage if required 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT B 
 APPENDIX TO STATEMENT OF WORK 
 FORM OF CHANGE ORDER 
 Tower Semiconductor Ltd. (“Tower”) and Alien (“Alien”), subject to the terms and conditions set forth in that certain IC Technology
Development Agreement by and between Tower and Alien dated as of XXXX, hereby agree to modify Statement of Work No. ___ entered into there under and dated as of __________ ___, 200___ (the “Statement of Work”) as follows: 
 (attach other sheets if necessary) 
 Other than as modified
herein, or as modified by other Change Orders with respect to the Statement of Work that have been or may be entered into between Alien and Tower, the Statement of Work remains in full force and effect. 
 The parties have entered into this Change Order as of ________________, 200__. 
  

									
	 TOWER SEMICONDUCTOR LTD.
	 		 	 ALIEN TECHNOLOGY CORPORATION:

					
	BY:	 	  	 		 	 BY:
	 	  
		 	 [name]
	 		 		 	 [Insert name]

					
	 ITS:
	 	  	 		 	 ITS:
	 	  

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT C 
 APPENDIX TO STATEMENT OF WORK 
 [***] 
  

	(1)	[***] 

  

	(2)	[***] 

  

	(3)	[***] 

 [***] Tower agrees that it will supply the agreed wafer
requirements to Alien provided that Alien meets the forecast, lead time, and other commercial requirements in the Foundry Agreement between Alien and Tower, or if no such Foundry Agreement is in place, Tower’s standard forecast, lead-time and
other commercial requirements for products in the class of the Tower Outsourced Products. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT D 
 APPENDIX TO STATEMENT OF WORK 
 MODULE CHARACTERIZATION PLAN 
  

							
	Title: Module characterization plan
	
	REVISION HISTORY
				
	 Rev
	  	 Originator
	  	 Date
	  	 Page/Paragraph - Changed Deleted

	 1.0
	  	Tóth Tamás	  	Nov. 15 2005	  	Initial Criteria
	 2.0
	  	Limor Levy-Kendler	  	Dec 21, 2005	  	Adjust per biz/customer requirements
	 3.0
	  	Ohad Kritz	  	March 2, 2006	  	Terminology Alignment with the SOW

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	1.	General 

 This document describes the characterization plan for the Tower
Module, [***]. The following sections detail the electrical tests required to determine the functionality and manufacturability of the Tower Module. 
 Description of the Test Conditions: 
 Quantity – [***] 
 Tested Parameters – [***] 
 Operating Temperature: [***] 
 Operating Voltage: [***] 
                                 [***] 
 Output – [***] 
  

	2.	Module Diagram 

 [***] 
 Figure 1. MTEG Architecture 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 2.1 AC Characteristics – Read 
 [***] 
 2.2 AC Characteristics – Write 
 [***] 
 2.3 AC Characteristics – Erase 
 [***] 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 EXHIBIT E 
 APPENDIX TO STATEMENT OF WORK 
 MODULE QUALIFICATION PLAN 
  

											
	Title: TS18 TNV 1K Cycles Technology Qualification Plan
		
	Number: RAI2 070	  	1.0
	
	REVISION HISTORY
					
	 Rev
	  	 Originator
	  	 Date
	  	By	  	 Page/Paragraph - Changed Deleted

	 1.1
	  	Efraim Aloni	  	13/11/2005	  	TE	  	
	 1.2
	  	Ohad Kritz	  	02/03/2006	  		  	Terminology alignment with the SOW
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 QUALIFICATION PLAN 
 TS18 TNV 1K CYCLES TECHNOLOGY 
  

					
	 Responsible Engineer:
	  	Amos Fenigstein	 	(Tel: 6080)
			
	 Originator:
	  	Efraim Aloni	 	(Tel: 6673)
			
	 Fab:
	  	2	 	
			
	 Area:
	  	New Technology	 	

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	1.	PURPOSE AND SCOPE 

 The purpose of this document is
to qualify the Module based on the [***] technology 
  

	2.	TABLE OF CONTENTS 

  

					
	 1.
	 	PURPOSE AND SCOPE	  	3
	 2.
	 	TABLE OF CONTENTS	  	3
	 3.
	 	APPLICABLE DOCUMENTS	  	4
	 4.
	 	DEFINITIONS	  	4
	 5.
	 	SUPPLIES AND MATERIALS	  	4
	 6.
	 	EQUIPMENT	  	4
	 7.
	 	SAFETY	  	4
	 8.
	 	ENVIRONMENTAL PROTECTION	  	4
	 9.
	 	NEW TECHNOLOGY AND QUALIFICATION VEHICLE DESCRIPTION	  	5
	 9.1
	 	General technology	  	5
	 9.2
	 	Process flow Documentation	  	5
	 9.3
	 	Qualifying vehicle description	  	5
	 10.
	 	JUSTIFICATION FOR THE NEW PROCESS	  	6
	 10.1
	 	Business	  	6
	 10.2
	 	Technology	  	6
	 11.
	 	GENERAL	  	6
	 12.
	 	QUALIFICATION PLAN	  	6
	 12.1.
	 	On Line Process Monitor	  	6
	 12.2.
	 	Electrical Tests	  	6
	 12.3.
	 	Duty Cycle	  	7
	 12.4.
	 	Process Qualification	  	7
	 12.4.1.
	 	 [***]	  	7
	 12.4.2
	 	 [***]	  	7
	 12.4.3.
	 	 [***]	  	7
	 12.5.
	 	Standard Evaluation Circuit (SEC)- [***]	  	8
	 12.5.1.
	 	 [***]	  	8
	 12.6.
	 	Technology release	  	10
	 13.
	 	PROCESS CHANGE APPROVAL FORM	  	10

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	3.	APPLICABLE DOCUMENTS 

  

			
	 Document Name
	  	 Document Number

	 Tower Semiconductor Manufacturing Safety Procedures
	  	[***]
	 Tower’s Environmental Quality Master Specifications (QMS)
	  	[***]
	 Reliability Requirements for Qualification of a New Process
	  	[***]
	 Reliability Requirements for Qualification of a New Process Module
	  	[***]
	 Process Qualification Report, [***]
	  	[***]
		
	 Design Rules for [***]
	  	[***]
	 Design Rules For [***]
	  	[***]

  

	4.	DEFINITIONS 

  

			
	 LV
	 	Low Voltage
	 HV
	 	High Voltage
	 RT
	 	Room Temperature
	 HTOL
	 	High Temperature OP-Life
	 LTOL
	 	Low Temperature OP-Life
	 CKBD
 LTPD
	 	 Checker Board
 Lot Tolerance Proportion
Defective

  

	5.	SUPPLIES AND MATERIALS 

 N/A 
  

	6.	EQUIPMENT 

  

			
	 Tool/Machine/Equipment
	 	 Usage

	 [***]
	 	 [***]

	 [***]
	 	 [***]

	 [***]
	 	 [***]

  

	7.	SAFETY 

 All personnel shall read and comply with
[***]. 
  

	8.	ENVIRONMENTAL PROTECTION 

 All personnel must review
their operations with reference to the requirements as noted in [***]. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	9.	NEW TECHNOLOGY AND QUALIFICATION VEHICLE DESCRIPTION 

  

	 	9.1.	General technology 

 [***]. 
  

	 	9.2.	Process flow Documentation 

 [***] 
  

	 	9.3.	Qualifying vehicle description 

 The
qualifying module/vehicle, identified as [***], is described in the following table. 
  

							
	 Device
	  	Package	 	Product size	 	Product array
	 [***]
	  	[***]	 	[***]	 	[***]
		  		 		 	

 Module [***] description 
 [***] 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	10.	JUSTIFICATION FOR THE NEW PROCESS 

  

	 	10.1.	Technology. 

 This Technology is defined in Tower
Semiconductor Technology Road Map. 
  

	11.	GENERAL 

 The qualifying requirements of this new
process are described in tower semiconductor [***]. 
 Device characterization report should be available before final technology approval
will be issued. 
  

	12.	QUALIFICATION PLAN 

  

	 	12.1.	  On Line Process Monitor 

 [***]. 

 

	 	12.2.	  Electrical Tests 

 A total minimum of [***]
will be tested. 
 [***]. 
  

	 	12.3. 	Duty Cycle 

 [***]. 
  

	 	12.4.	  Process Qualification 

  

	(a)	12.4.1. [***] 

  

	 	12.5.	  Standard Evaluation Circuit (SEC)- [***] 

 [***] 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

	 	12.6.	 Technology release 

  

	1	Conditional approval Will be granted upon completion of the following tests:. [***] 

  

	2	Final technology release will granted upon completion of all qualification tests, excluding engineering evaluation tests. 

  

	13.	PROCESS CHANGE APPROVAL FORM 

 CONDITIONAL & FINAL
RELEASE ACCORDING TO QUAL REPORT APPROVERS LIST: 
 Project Manager 
 Reliability Physics Manager 
 Integration Manager 
 Yield & Device MGR 
 [***] 
 Eng. MGR

 Qualification Manager 
 Reliability Manager 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 Module Specifications 
 [***] 

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 CONFIDENTIAL TREATMENT REQUESTED BY ALIEN TECHNOLOGY CORP. 
  

 Preliminary Module Datasheet 
 [***] 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission.

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