Document:

exv10w15

Exhibit 10.15

This Technology License Agreement (“TLA”) is made the 20th day of May day of 2004 (“Effective
Date”)

BETWEEN

ARM LIMITED whose registered office is situated at 110 Fulbourn Road, Cambridge CB1 9NJ,
England (“ARM”);

and

HYNIX SEMICONDUCTOR INC. whose principal place of business is situated at Youngdong Building
891, Daechi-dong, Kangnam-gu, Seoul, Republic of Korea (“HYNIX”).

WHEREAS

LICENSEE has requested ARM and ARM has agreed to license to LICENSEE certain ARM Technology
(defined below) on the following terms and conditions.

	1.	 	Definitions
	 
	1.1	 	“ARM Compliant Product” means an integrated circuit incorporating
an ARM Compliant Core as defined in the relevant Annex 1.
	 
	1.2	 	“ARM Technology” means any or all, as the context admits, of the
technology identified in each Annex 1 and any Updates thereto
delivered by ARM to LICENSEE.
	 
	1.3	 	“ASP” means the average sales price of an ARM Compliant Product
or other device which contains royalty bearing ARM Technology, as
the case may be, in a Quarter, calculated by taking the figure
for the aggregate of all invoices for the distribution of such
ARM Compliant Product or other device which contains royalty
bearing ARM Technology in such Quarter by the entity exercising
the licences to manufacture or have manufactured under this TLA
(notwithstanding that such distribution may be between HYNIX and
a Subsidiary of HYNIX or between Subsidiaries of HYNIX), less;
(i) any value added, turnover, import or other tax, duty or
tariff payable by law thereon; and (ii) any freight and insurance
costs included in the invoiced price, and dividing it by the
number of units of such ARM Compliant Product or other device
which contains royalty bearing ARM Technology, as appropriate,
accounted for under such invoices.
	 
	1.4	 	“Claim” means a written notice received by ARM and claiming
infringement of the Intellectual Property of a third party by any
of the ARM Technology and which demands that ARM cease and desist
from such claimed Intellectual Property infringement.
	 
	1.5	 	“Confidential Information” means; (i) the ARM Technology and
derivatives thereof (including any translation, modification,
compilation, abridgement or other form in which the ARM
Technology has been recast, transformed or adapted) and any trade
secrets relating to the ARM Technology; (ii) any information
designated in writing by either party, by appropriate legend, as
confidential; (iii) any information which if first disclosed
orally is identified as confidential at the time of disclosure
and is thereafter reduced to writing for confirmation and sent to
the other party within thirty (30) days after its oral disclosure
and designated, by appropriate legend, as confidential; and (iv)
the terms and conditions of this TLA.
	 
	1.6	 	“Customer” means any entity that has contracted with LICENSEE for
the design and manufacture of an ARM Compliant Product for such
entity.
	 
	1.7	 	“Designer” means any entity sub-contracted by LICENSEE to provide
design resource to LICENSEE.
	 
	1.8	 	“Intellectual Property” means any patents, patent rights, trade
marks, service marks, registered designs, topography or
semiconductor mask work rights, applications for any of the
foregoing, copyright, unregistered design right and any other
similar protected rights in any country.

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	1.9	 	“LICENSEE” means HYNIX and any Subsidiaries of HYNIX.
	 
	1.10	 	“Manufacturer” means any entity sub-contracted by LICENSEE to
manufacture integrated circuits for LICENSEE.
	 
	1.11	 	“Quarter” means each calendar quarter ending the 31st March,
30th June, 30th September and 31st December of each year.
	 
	1.12	 	“Subsidiary” means any company the majority of whose voting
shares is now or hereafter owned or controlled, directly or
indirectly, by a party hereto or any company a majority of whose
voting shares is now or hereafter owned or controlled, directly
or indirectly, by any of the aforementioned entities. A company
shall be a Subsidiary only so long as such control exists.
	 
	1.13	 	“Term” means the term for which the subject ARM Technology is
licensed to LICENSEE by ARM as specifically set out in Section 7
of the relevant Annex 1.
	 
	1.14	 	“Test House” means any entity sub-contracted by LICENSEE to test
integrated circuits for LICENSEE.
	 
	1.15	 	“Trademarks” means the trademarks identified in Section 6 of each Annex 1.
	 
	1.16	 	“Trademark Guidelines” means the guidelines for the use of ARM’s
Trademarks as set out in Annex 2 and any amendment thereto
delivered to LICENSEE by ARM from time to time in accordance
with the provisions of Clause 2.9.
	 
	1.17	 	“Updates” means any; (i) error corrections developed by or for
ARM; and (ii) functional enhancements or other modifications
developed by or for ARM (which ARM in its discretion decides
does not constitute a new product), together with any
Intellectual Property embodied therein.
	 
	2.	 	Licence
	 
	 	 	ARM Technology Licence
	 
	2.1	 	The ARM Technology shall be licensed to LICENSEE subject to the
relevant license terms identified in Section 2 of the relevant
Annex 1.
	 
	 	 	Subcontracting Design
	 
	2.2	 	Subject to the provisions of Clause 3 (Confidentiality), LICENSEE
may exercise the right, if granted in Section 2 of the relevant
Annex 1, to have ARM Compliant Products or other devices which
contain ARM Technology licensed in accordance with the terms of
this TLA, as the case may be, designed by any Designer, provided
that; (a) LICENSEE does not grant to the Designer any license in
respect of the ARM Technology for any other purpose; and (b) that
each Designer;

	 	(i)	 	is subject to contractual obligations of
confidentiality in respect of the ARM Confidential
Information and ARM Technology which are in
accordance with the provisions of Clause 3.3;
	 
	 	(ii)	 	is subject to a contractual obligation to use the
ARM Confidential Information and ARM Technology
solely for the purpose of supplying the designs of
the ARM Compliant Products or other devices which
contain ARM Technology licensed in accordance with
the terms of this TLA, as the case may be, solely to
LICENSEE; and
	 
	 	(iii)	 	is subject to a contractual obligation to return
any ARM Confidential Information and ARM Technology
to LICENSEE on the earlier of; (a) the completion
of the design; and (b) the end of the contractual
confidentiality period (in the agreement between
LICENSEE and Designer) for the relevant ARM
Confidential Information or ARM Technology.

	 	 	If any Designer breaches the provisions of Clauses 2.2(i) to 2.2(iii), LICENSEE agrees
that such breach shall be treated as a material breach of this TLA by LICENSEE which shall
entitle ARM to terminate this TLA in accordance with the provisions of Clause 14.2 and
LICENSEE shall hold ARM harmless from and keep ARM

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	 	 	indemnified against all and any loss, liability, costs, damages, expenses (including the
fees of lawyers and other professionals), suffered, incurred or sustained as a result of or in
relation to such breach.
	 
	 	 	Customer Collaboration
	 
	2.3	 	Subject to the provisions of Clause 3 (Confidentiality), LICENSEE
may exercise the right, if granted in Section 2 of the relevant
Annex 1, to have ARM Compliant Products or other devices which
contain ARM Technology licensed in accordance with the terms of
this TLA, as the case may be, designed by any Customer provided
that; (a) LICENSEE does not grant to the Customer any license in
respect of the ARM Technology for any purpose other than for
collaborating on the design of ARM Compliant Products or other
devices which contain ARM Technology licensed in accordance with
the terms of this TLA, as the case may be, with LICENSEE and; and
(b) that each Customer;

	 	(i)	 	is subject to contractual obligations of
confidentiality in respect of the ARM Confidential
Information and ARM Technology which are in
accordance with the provisions of Clause 3.4;
	 
	 	(ii)	 	is subject to a contractual obligation to use the
ARM Confidential Information and ARM Technology
solely for the purpose of supplying the designs of
the ARM Compliant Products or other devices which
contain ARM Technology licensed in accordance with
the terms of this TLA, as the case may be, solely to
LICENSEE; and
	 
	 	(iii)	 	is subject to a contractual obligation to return
any ARM Confidential Information and ARM Technology
to LICENSEE on the earlier of; (a) the completion
of the design; and (b) the end of the contractual
confidentiality period (in the agreement between
LICENSEE and Customer) for the relevant ARM
Confidential Information or ARM Technology.

	 	 	If any Customer breaches the provisions of Clauses 2.3(i) to 2.3(iii), LICENSEE agrees
that such breach shall be treated as a material breach of this TLA by LICENSEE which shall
entitle ARM to terminate this TLA in accordance with the provisions of Clause 14.2 and
LICENSEE shall hold ARM harmless from and keep ARM indemnified against all and any loss,
liability, costs, damages, expenses (including the fees of lawyers and other professionals),
suffered, incurred or sustained as a result of or in relation to such breach.
	 
	 	 	Subcontracting Manufacture
	 
	2.4	 	Subject to the provisions of Clause 3 (Confidentiality), LICENSEE
may exercise the right, if granted in Section 2 of the relevant
Annex 1, to have ARM Compliant Products or other devices which
contain ARM Technology licensed in accordance with the terms of
this TLA, as the case may be, manufactured by a Manufacturer
provided that; (a) LICENSEE does not grant to the Manufacturer
any license in respect of the ARM Technology for any purpose
other than for manufacturing ARM Compliant Products or other
devices which contain ARM Technology licensed in accordance with
the terms of this TLA, as the case may be, solely for LICENSEE;
and (b) that each Manufacturer;

	 	(i)	 	is subject to contractual obligations of
confidentiality in respect of the ARM Confidential
Information and ARM Technology which are in
accordance with the provisions of Clause 3.2;
	 
	 	(ii)	 	is subject to a contractual obligation to use the
ARM Confidential Information and ARM Technology
solely for the purpose of supplying units of the ARM
Compliant Products or other devices which contain
ARM Technology licensed in accordance with the terms
of this TLA, as the case may be, solely to LICENSEE;
and
	 
	 	(iii)	 	is subject to a contractual obligation to return
any ARM Confidential Information and ARM Technology
to LICENSEE on the earlier of; (a) the completion
of the manufacture; and (b) the end of the
contractual confidentiality period (in the
agreement between LICENSEE and Manufacturer) for
the relevant ARM Confidential Information or ARM
Technology.

	 	 	If any Manufacturer breaches the provisions of Clauses 2.4(i) to 2.4(iii), LICENSEE
agrees that such breach shall be treated as a material breach of this TLA by LICENSEE which
shall entitle ARM to terminate this TLA in accordance with the provisions of Clause 14.2 and
LICENSEE shall hold ARM harmless from and keep ARM

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	 	 	indemnified against all and any loss, liability, costs, damages, expenses (including the
fees of lawyers and other professionals), suffered, incurred or sustained as a result of or in
relation to such breach.
	 
	 	 	Subcontracting Testing
	 
	2.5	 	Subject to the provisions of Clause 3 (Confidentiality), LICENSEE
may exercise the right, if granted in Section 2 of the relevant
Annex 1, to have tested ARM Compliant Products or other devices
which contain ARM Technology licensed in accordance with the
terms of this TLA, as the case may be, by a Test House provided
that; (a) LICENSEE does not grant to the Test House any license
in respect of the ARM Technology for any purpose other than for
testing ARM Compliant Products or other devices which contain ARM
Technology licensed in accordance with the terms of this TLA, as
the case may be, solely for LICENSEE; and (b) that each Test
House;

	 	(i)	 	is subject to contractual obligations of
confidentiality in respect of the ARM Confidential
Information and ARM Technology which are in
accordance with the provisions of Clause 3.5;
	 
	 	(ii)	 	is subject to a contractual obligation to use the
ARM Confidential Information and ARM Technology
solely for the purpose of supplying units of the
tested ARM Compliant Products or other devices which
contain ARM Technology licensed in accordance with
the terms of this TLA, as the case may be, solely to
LICENSEE; and
	 
	 	(iii)	 	is subject to a contractual obligation to return
any ARM Confidential Information and ARM Technology
to LICENSEE on the earlier of; (a) the completion
of the testing; and (b) the end of the contractual
confidentiality period (in the agreement between
LICENSEE and Test House) for the relevant ARM
Confidential Information or ARM Technology.

	 	 	If any Test House breaches the provisions of Clauses 2.5(i) to 2.5(iii), LICENSEE agrees
that such breach shall be treated as a material breach of this TLA by LICENSEE which shall
entitle ARM to terminate this TLA in accordance with the provisions of Clause 14.2 and
LICENSEE shall hold ARM harmless from and keep ARM indemnified against all and any loss,
liability, costs, damages, expenses (including the fees of lawyers and other professionals),
suffered, incurred or sustained as a result of or in relation to such breach.
	 
	 	 	Intercompany Matters
	 
	2.6	 	Any breach of this TLA by a Subsidiary of HYNIX shall entitle ARM
to terminate this TLA in accordance with the provisions of Clause
14.2 as if HYNIX were the party in breach. Any termination of
this TLA in accordance with the provisions of Clause 14.2 shall
be effective in respect of HYNIX and all Subsidiaries.
	 
	 	 	Any rights granted to any Subsidiary of HYNIX hereunder shall automatically terminate
upon such Subsidiary of HYNIX ceasing to be a Subsidiary of HYNIX.
	 
	 	 	In the event that a Subsidiary of HYNIX is in breach of any of the terms of this TLA,
HYNIX shall hold harmless and indemnify ARM against all and any loss, liability, costs,
damages, expenses (including the reasonable fees of lawyers and other professionals) suffered,
as a result of or in connection with such breach.
	 
	 	 	Licence Restrictions
	 
	2.7	 	Except as specifically licensed in accordance with Clause 2.1,
LICENSEE acquires no right, title or interest in any ARM
Confidential Information, ARM Technology or any Intellectual
Property embodied therein. In no event shall the licenses granted
in accordance with Clause 2.1 be construed as granting LICENSEE,
expressly or by implication, estoppel or otherwise, a license to
use any ARM technology except the ARM Technology.
	 
	 	 	Except as expressly licensed in accordance with Clause 2.1, no right is granted to
LICENSEE to sublicense the rights granted to LICENSEE under this TLA.
	 
	 	 	LICENSEE shall not use or procure others to use any ARM Technology or ARM Confidential
Information; (i) for the purposes of determining if any features, functions or processes
provided by the ARM Technology or disclosed by the ARM Confidential Information are covered by
any patents or patent applications owned by LICENSEE; or (ii) as a reference for developing
inventions in respect of which LICENSEE or its agents will seek patent protection; (iii) for
developing technology or products which work around any of ARM’s Intellectual Property
licensed

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	 	 	hereunder; or (iv) as a reference for modifying existing patents or patent applications
or creating any continuation, continuation in part, or extension of existing patents or patent
applications.
	 
	 	 	Intellectual Property Notices
	 
	2.8	 	LICENSEE shall reproduce and not remove or obscure any notice
incorporated in the ARM Technology by ARM to protect ARM’s
Intellectual Property or to acknowledge the Intellectual Property
of any third party. LICENSEE shall incorporate and shall require
that any Designer, Customer, Manufacturer and Test House to which
any ARM Technology is provided in accordance with the terms of
this Agreement, incorporates corresponding notices and such other
markings and notifications as ARM may reasonably require on all
copies of the ARM Technology and any derivatives thereof
(including any translation, modification, compilation,
abridgement or other form in which the ARM Technology has been
recast, transformed or adapted) created by LICENSEE, Designer,
Customer, Manufacturer or Test House, as the case may be.
	 
	 	 	ARM Trademarks
	 
	2.9	 	ARM hereby grants to LICENSEE a non-transferable (subject to
Clause 16.3), non-exclusive, royalty-free, world-wide license to
use the Trademarks in connection with the promotion and sale of
products developed under the licences granted in this TLA.
	 
	 	 	LICENSEE shall use the Trademarks, in accordance with the Trademark Guidelines. ARM shall
have the right to revise the Trademark Guidelines and Section 6 of any Annex 1. Any such
revisions shall be effective with respect to printed materials and products to be produced or
manufactured after ninety (90) days from receipt of ARM’s written notice specifying the
revisions to LICENSEE.
	 
	 	 	Upon request from ARM, LICENSEE shall submit samples of documentation, packaging, and
promotional or advertising materials bearing the Trademarks to ARM so that ARM may verify
compliance with the Trademark Guidelines. In the event that any documentation, packaging,
promotional or advertising material fails to comply with the Trademark Guidelines, ARM shall
notify LICENSEE and LICENSEE shall rectify such documentation, packaging, and promotional or
advertising materials so as to comply with the Trademark Guidelines and cease using any such
non-compliant materials as soon as reasonably possible after the date of ARM’s notice.
	 
	 	 	LICENSEE agrees to provide reasonable assistance to ARM in maintaining the validity of
the Trademarks. Upon ARM’s request, LICENSEE shall provide, free of charge, a reasonable
number of samples of the use of the Trademarks for the purpose of trademark registration or
renewal. Upon request, LICENSEE shall at ARM’s expense execute any documents required by the
applicable laws of any jurisdiction for the purpose of either or both registering and
maintaining the Trademarks.
	 
	 	 	Except as provided by the terms of this TLA, LICENSEE shall not use or register, in any
jurisdiction, any trademark, service mark, device or logo or any word or mark confusingly
similar to any of the Trademarks.
	 
	3.	 	Confidentiality
	 
	 	 	Restricted Disclosure
	 
	3.1	 	Except as expressly provided by Clauses 3.2, 3.3, 3.4, 3.5, 3.6
and 3.7, each party shall maintain in confidence the Confidential
Information disclosed by the other party and apply security
measures no less stringent than the measures that such party
applies to its own like information, but not less than a
reasonable degree of care, to prevent unauthorised disclosure and
use of the Confidential Information. The period of
confidentiality shall be indefinite with respect to each party’s
Confidential Information.
	 
	 	 	Permitted Disclosure to Manufacturers
	 
	3.2	 	LICENSEE may disclose the (i) the ARM Technology marked “M” in
any Annex 1, and any translation, modification, compilation,
abridgement or other form in which the ARM Technology marked “M”
has been recast, transformed or adapted; (ii) any GDSII created
by or for LICENSEE from the synthesizable RTL licensed under any
Annex 1; and (iii) any masks created from the GDSII by or for
LICENSEE, to a Manufacturer pursuant to the exercise of any have
manufactured rights (if granted in Section 2 of the relevant
Annex 1) solely for the purposes of having ARM Compliant Products
manufactured for LICENSEE by such third party and under a
non-disclosure

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	 	 	agreement containing substantially similar terms to this Clause 3, except
that the confidentiality period for each deliverable shall be, at a minimum, of
five (5) years from the date of disclosure.
	 
	 	 	Permitted Disclosure to Designers
	 
	3.3	 	LICENSEE may disclose the ARM Technology marked “D” in any Annex
1 and any translation, modification, compilation, abridgement or
other form in which the ARM Technology marked “D” has been
recast, transformed or adapted, to a Designer pursuant to the
exercise of the have designed rights (if granted in Section 2 of
the relevant Annex 1) solely for the purposes of having ARM
Compliant Products designed for LICENSEE by such third party and
under an non-disclosure agreement containing substantially
similar terms to this Clause 3, including the confidentiality
period for each deliverable determined in accordance with the
provisions of Clause 3.1.
	 
	 	 	Permitted Disclosure to Customers
	 
	3.4	 	LICENSEE may disclose the ARM Technology marked “CS” in any Annex
1 to a Customer solely for the purposes of collaborating on the
design of ARM Compliant Products for such third party and under
an non-disclosure agreement containing substantially similar
terms to this Clause 3, including the confidentiality period for
each deliverable determined in accordance with the provisions of
Clause 3.1.
	 
	 	 	Permitted Disclosure to Test Houses
	 
	3.5	 	LICENSEE may disclose (i) the ARM Technology marked “T” in any
Annex 1 and any translation, modification, compilation,
abridgement or other form in which the ARM Technology marked “T”
has been recast, transformed or adapted; and (ii) any ATPG test
vectors created by or for LICENSEE from the synthesizable RTL to
a Test House pursuant to the exercise of the have tested rights
(if granted in Section 2 of the relevant Annex 1) solely for the
purposes of having ARM Compliant Products tested for LICENSEE by
such third party and under an non-disclosure agreement containing
substantially similar terms to this Clause 3, except that the
confidentiality period for each deliverable shall be, at a
minimum, five (5) years from the date of disclosure.
	 
	3.6	 	Other Permitted Disclosures
	 
	 	 	Either party may disclose Confidential Information received from the other party in the
following circumstances;

	 	(i)	 	disclosure to third parties to the extent that the
Confidential Information is required to be disclosed
pursuant to a court order or as otherwise required by
law, provided that the party required to make the
disclosure promptly notifies the other party upon
learning of such requirement and has given the other
party a reasonable opportunity to contest or limit
the scope of such required disclosure (including but
not limited to making an application for a protective
order);
	 
	 	(ii)	 	disclosure to nominated third parties under written
authority from the original discloser of the
Confidential Information; and
	 
	 	(iii)	 	disclosure to the receiving party’s legal counsel,
accountants or professional advisors to the extent
necessary for them to advise upon the
interpretation or enforcement of this Agreement.

	 	 	Permitted Disclosure of LICENSEE Confidential Information
	 
	3.7	 	LICENSEE royalty reports may be disclosed in confidence to ARM’s
financial and legal advisors. In addition, ARM may disclose the
total unit sales, from time to time, of ARM Compliant Products
and any other devices which contain royalty bearing ARM
Technology, provided that the unit sales of such products by
LICENSEE are not separately identifiable or deducible therefrom.
	 
	 	 	ARM shall be permitted to disclose LICENSEE Confidential Information to Subsidiaries of
ARM subject to the same terms and conditions of confidentiality as are set out in this
Agreement.
	 
	 	 	Restricted Use
	 
	3.8	 	LICENSEE agrees that it shall not use any of ARM’s Confidential
Information other than pursuant to and in accordance with the
exercise of any of the licences granted under this TLA.

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	 	 	Excepted Information
	 
	3.9	 	The provisions of this Clause 3 shall not apply to information which;

	 	(i)	 	is known to and has been reduced to tangible form by
the receiving party prior to its receipt provided
that such information is not already subject to any
obligations of confidentiality; or
	 
	 	(ii)	 	is in the public domain at the time of receipt or
later becomes part of the public domain without
breach of the confidentiality obligations in this
TLA; or
	 
	 	(iii)	 	is received from a third party without any breach
of any obligation of confidentiality in respect of
such information provided that such information is
not subject to any continuing obligations of
confidentiality; or
	 
	 	(iv)	 	is identified as (N) in Section 1 of the relevant Annex 1 of this TLA.

	4.	 	Verification
	 
	4.1	 	Prior to the distribution of any integrated circuit incorporating
a central microprocessor unit manufactured by or for LICENSEE
under the licences granted in Section 2 of any Annex 1, LICENSEE
shall verify such central microprocessor unit in accordance with
the verification procedure set out in Section 3 of the relevant
Annex 1.
	 
	5.	 	Delivery
	 
	5.1	 	ARM shall use reasonable efforts to deliver the ARM Technology in
each Annex 1 to LICENSEE on or before the delivery dates set out
in Section 1 of the relevant Annex 1. ARM shall deliver Updates
for any ARM Technology to LICENSEE as soon as reasonably possible
after such Update is made generally available by ARM.
	 
	6.	 	Fees and Royalties
	 
	 	 	Fees
	 
	6.1	 	HYNIX shall pay, to ARM, fees (“Fees”) as set out in and in
accordance with Section 8 of the relevant Annex 1.
	 
	 	 	Royalties
	 
	6.2	 	If provided for in Section 8 of a relevant Annex 1, HYNIX shall
pay, to ARM, a royalty (“Royalty”) in accordance with the
provisions of such Annex 1.
	 
	 	 	For the purpose of calculating Royalties, only the distribution by the entity exercising
the licences to manufacture or have manufactured under this TLA (notwithstanding that such
distribution may be between HYNIX and a Subsidiary of HYNIX or between Subsidiaries of HYNIX)
shall be relevant.
	 
	 	 	Any distribution of ARM Compliant Products by LICENSEE shall, in the absence of evidence
to the contrary, be deemed to be distributed under the licences granted to LICENSEE under this
TLA and LICENSEE shall pay Royalties to ARM accordingly. The burden of proof for rebutting the
above presumption shall be on LICENSEE.
	 
	 	 	Royalty Report
	 
	6.3	 	HYNIX shall submit a report within thirty (30) days after the end
of each Quarter, containing at least the information required by
the form set out in Section 8 of each Annex 1.
	 
	 	 	Intercompany Sales
	 
	6.4	 	For transactions between any of HYNIX and the Subsidiaries of
HYNIX, LICENSEE shall ensure that such transactions shall be
conducted so that the ASP of any ARM Compliant Product or other
device which contains royalty bearing ARM Technology licensed in
accordance with the terms of this TLA, as the case may be, is not
manipulated for the purpose of reducing the Royalties payable to
ARM under this TLA. If any ARM Compliant Product or other device
which contains royalty bearing ARM Technology is sold to HYNIX or
to a Subsidiary of HYNIX then the invoice price shall be deemed
to be the higher of the actual invoice price and what the invoice
price of the ARM Compliant Product or other device which contains
royalty bearing ARM Technology, as the case may

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	 	 	be, would have been if such ARM Compliant Product or other device which
contains royalty bearing ARM Technology had been sold to an independent
customer at a fair open market value.
	 
	 	 	Records
	 
	6.5	 	For the period of five (5) years from the date that each royalty
report is delivered to ARM by HYNIX, LICENSEE shall keep such
records and books of account, identifying and providing invoice
details for ARM Compliant Products or any other royalty bearing
ARM Technology distributed under the licences granted in this
TLA, as are necessary to derive the ASP for each ARM Compliant
Product or any other royalty bearing ARM Technology identified in
such royalty report and to demonstrate compliance with LICENSEE’s
obligations under this Clause 6.
	 
	 	 	Audit
	 
	6.6	 	ARM shall have the right for representatives of a firm of
independent Chartered Accountants (“Auditors”), to make an
examination and audit, by prior appointment during normal
business hours, of all records and accounts as may under
recognised accounting practices contain information bearing upon;

	 	(i)	 	the number of units of ARM Compliant Products and any
other devices which contain royalty bearing ARM
Technology which have been distributed by LICENSEE
under this TLA;
	 
	 	(ii)	 	the number of ARM microprocessor cores incorporated
into any ARM Compliant Product which has been
distributed by LICENSEE under this TLA;
	 
	 	(iii)	 	the ASP and fair market value of any ARM Compliant
Product and any other devices which contain royalty
bearing ARM Technology which have been distributed
by LICENSEE under this TLA;
	 
	 	(iv)	 	the amounts of Royalties payable to ARM under this TLA; and
	 
	 	(v)	 	any fees payable to ARM under this TLA.

	 	 	The Auditors shall be permitted to provide, to ARM, information relating to Clauses
6.6(i)-(iv), including but not limited to, information relating to the systems operated by
LICENSEE to capture and record such information. Any information obtained pursuant to any
audit performed in accordance with the provisions of this Clause 6.6 and provided by the
Auditors to ARM shall be treated by ARM as LICENSEE Confidential Information. The Auditors’
conclusions shall (in the absence of clerical or manifest error) be final and binding on the
parties. Such audit shall be at ARM’s expense unless it reveals a net underpayment of
Royalties or other fees of five per cent (5%) or more in any Quarter, in which case HYNIX
shall promptly reimburse ARM for the costs of such audit. HYNIX shall make good any
underpayment of royalties forthwith. If the audit identifies that HYNIX has made an
overpayment, such overpayment will be credited to the next payment or payments of Royalties or
fees to be made by HYNIX.
	 
	 	 	Taxes
	 
	6.7	 	All sums stated under this TLA do not include taxes. All
applicable taxes shall be payable by LICENSEE in accordance with
relevant legislation in force at the relevant tax point. Any
income or other tax which LICENSEE is required by law to pay or
withhold on behalf of ARM with respect to any Royalties or other
fees payable to ARM under this TLA may be deducted from the
amount of such Royalties or other fees otherwise due, provided,
however, that in regard to any such deduction, HYNIX shall give
to ARM such assistance as may be necessary to enable or assist
ARM to claim exemption therefrom, or credit therefor, and shall
upon request furnish to ARM such certificates and other evidence
of deduction and payment thereof as ARM may properly require.
	 
	 	 	Payment
	 
	6.8	 	HYNIX shall pay all Royalties and Fees due to ARM under the terms
of this TLA within thirty (30) days of receipt of ARM’s invoice
therefor (“Due Date”). ARM shall send any invoice for payment to
the address set out in Section 8 of the relevant Annex 1 and
HYNIX shall provide ARM with at least ten (10) working days
notice of any change to such address.
	 
	6.9	 	If any sum under this TLA is not paid by the Due Date (defined in
Clause 6.8), then (without prejudice to ARM’s other rights and
remedies in addition to the invoice amount) ARM reserves the
right to charge interest on such sum

8 of 15

 

	 	 	on a day to day basis (as well after as before any judgement) from the Due
Date to the date of payment at the rate of five (5%) per cent per annum above
the base rate of National Westminster Bank PLC from time to time in force.
	 
	 	 	No Right of Set Off
	 
	6.10	 	All sums properly due to ARM under this Agreement shall be paid
in full and LICENSEE shall not be entitled to assert against ARM
any credit, set-off or counterclaim arising under any Annex 1 in
order to justify withholding payment of any sum properly due
under any other Annex 1. Obligations under each Annex 1 shall be
construed as divisible from obligations under any other Annex 1
for the purposes of interpreting this Clause 6.10.
	 
	7	 	Maintenance
	 
	7.1	 	Subject to LICENSEE’s payment of the appropriate Fees (defined in
Clause 6.1), ARM shall provide to LICENSEE, in respect of the
relevant ARM Technology the following maintenance for such ARM
Technology (“Maintenance”);

	 	(i)	 	the use of commercially reasonable efforts to correct
any defects in the ARM Technology which cause such
technology not to operate in accordance with the
functionality described in the relevant datasheet or
manual for such technology. If ARM determines that
such defects are due to errors in such description
ARM shall promptly issue corrections to the datasheet
or manual and shall not be required to revise the ARM
Technology, provided that LICENSEE’s use of the ARM
Technology by LICENSEE is not adversely affected
thereby; and
	 
	 	(ii)	 	all Updates to such ARM Technology.

	7.2	 	Upon LICENSEE requesting ARM’s assistance pursuant to the
provisions of Clause 7.1(i), LICENSEE shall promptly provide to
ARM such samples and technical information as ARM may reasonably
require and in a form specified by ARM to enable ARM to provide
such assistance.
	 
	7.3	 	ARM’s obligation under this Clause 7 is limited expressly to the
provision of Maintenance to LICENSEE and ARM shall be under no
obligation to provide any maintenance to any Designer, Customer,
Manufacturer, Test House or other third parties.
	 
	7.4	 	If ARM believes at any time that any ARM Technology infringes the
Intellectual Property of any third party, then ARM, at its option
and expense, may develop an Update to the relevant ARM Technology
which in ARM’s opinion avoids such infringement and upon receipt
of such Update from ARM, LICENSEE shall cease use of the ARM
Technology which the Update replaces.
	 
	8.	 	Support
	 
	8.1	 	Subject to LICENSEE’s payment of the appropriate Fees (defined in
Clause 6.1), ARM shall provide to LICENSEE, in respect of the
relevant ARM Technology, reasonable telephone, e-mail and written
consultation about the operation and application of such ARM
Technology. The services provided under this Clause 8.1 shall be
limited in accordance with the provisions of Section 4 of the
relevant Annex 1.
	 
	8.2	 	The support shall be provided from the relevant ARM support
centre. Nevertheless, ARM will use reasonable efforts to provide
support to LICENSEE, at LICENSEE’s premises, subject to LICENSEE
meeting all reasonable travelling, accommodation and sustenance
expenses thereby incurred and agreed in advance in writing with
LICENSEE.
	 
	8.3	 	ARM’s obligation under this Clause 8 is limited expressly to the
provision of support to LICENSEE and ARM shall be under no
obligation to provide any support any Designer, Customer,
Manufacturer, Test House or other third parties.

9 of 15

 

	8.4	 	Upon LICENSEE requesting ARM’s assistance pursuant to the
provisions of Clause 8.1, LICENSEE shall promptly provide to ARM
such samples and technical information as ARM may reasonably
require to enable ARM to provide such assistance.
	 
	9.	 	Training
	 
	9.1	 	If provided for in Section 5 of a relevant Annex 1, ARM shall
provide training in respect of the relevant ARM Technology in
accordance with the provisions of Section 5 of the relevant Annex
1.
	 
	10.	 	ARM Technology Functionality Warranties
	 
	10.1	 	Except as expressly provided in this TLA, ARM provides no
warranties express, implied or statutory, including, without
limitation, the implied warranties of satisfactory quality or
fitness for a particular purpose with respect to the ARM
Technology.
	 
	10.2	 	ARM warrants to LICENSEE that the ARM Technology will be
consistent with allowing a competent semiconductor manufacturer
to manufacture products which substantially conform to the
functionality described in the relevant technical reference
manual. LICENSEE acknowledges that the process for converting
the ARM Technology delivered to LICENSEE in to silicon
necessarily involves the introduction and use of technology not
delivered by ARM and accordingly ARM’s liability and LICENSEE’s
sole remedy for breach of the warranty provided under this
Clause 10.2 shall be as follows; if LICENSEE can demonstrate to
ARM that any defect in the silicon developed using any ARM
Technology is exclusively caused by a defect in the ARM
Technology as delivered to LICENSEE then ARM shall use
commercially reasonable efforts to correct any errors in the ARM
Technology and deliver corrected ARM Technology to LICENSEE. THE
FOREGOING STATES THE ENTIRE LIABILITY OF ARM WITH RESPECT TO
BREACH OF THE WARRANTY PROVIDED IN THIS CLAUSE 10.2.
	 
	10.3	 	ARM shall not be responsible for any recoverable or
non-recoverable costs incurred, directly or indirectly, by
LICENSEE in the design migration, processing, or manufacture of
masks and prototypes, characterization or manufacture of
production quality silicon in whatever quantity.
	 
	11.	 	ARM Technology Intellectual Property Warranties
	 
	11.1	 	ARM warrants, to ARM’s knowledge and belief, that;

	 	(i)	 	the ARM Technology does not infringe any third party
copyright, mask work right or trade secret; and
	 
	 	(ii)	 	as at the relevant Annex Effective Date, there are
no pending; (a) Claims, or (b) actions commenced
against ARM for infringement by the relevant ARM
Technology of any third party Intellectual Property.

	12.	 	Intellectual Property Indemnities
	 
	12.1	 	Except as provided under Clause 12.2, in the event of a suit
against LICENSEE based upon a claim that any of the ARM
Technology delivered by ARM to LICENSEE under this TLA, when
used in accordance with this TLA, infringes any third party
Intellectual Property, ARM agrees, subject to the limitations of
Clauses 13.1 and 13.2, to defend and indemnify LICENSEE, at
ARM’s expense, and to pay costs and damages finally awarded in
any such suit, provided that; (i) ARM is promptly notified by
LICENSEE, in writing, of any threats, claims and proceedings
related thereto; (ii) ARM shall have sole control of the defence
and any settlement thereof; (iii) LICENSEE shall not make any
admission of liability nor settle or otherwise compromise any
such claim without ARM’s prior written consent; (iv) LICENSEE
furnishes to ARM, upon request, any information available to
LICENSEE relating to the defence of such claim; (v) LICENSEE
provides reasonable assistance to ARM in the defence of such
claim; and (vi) ARM, at its option and expense, may; (a) obtain
for LICENSEE the right to continue to use the ARM Technology; or
(b) replace or modify the ARM Technology so that it becomes
non-infringing, in which event LICENSEE shall cease use of the
infringing ARM Technology. THE FOREGOING STATES THE ENTIRE
LIABILITY OF ARM

10 of 15

 

	 	 	WITH RESPECT TO INFRINGEMENT BY THE ARM TECHNOLOGY OF ANY THIRD PARTY
INTELLECTUAL PROPERTY.
	 
	12.2	 	ARM shall have no liability under Clause 12.1 for any
infringement arising from; (i) the combination of the ARM
Technology with other products not supplied by ARM if such
infringement would not have occurred but for such combination;
(ii) the modification by LICENSEE of the ARM Technology if such
infringement would not have occurred but for such modification;
(iii) the process of synthesizing any ARM Technology including
but not limited to the use by LICENSEE of LICENSEE’s or
LICENSEE’s agent’s cell libraries if such infringement would not
have occurred but for the application of such process; or (iv)
any manufacturing process applied to the ARM Technology by
LICENSEE if such infringement would not have occurred but for
the application of such process.
	 
	12.3	 	If a suit against ARM is based in whole or in part upon a claim
that any of the ARM Technology delivered by ARM to LICENSEE
under this TLA, when used in accordance with this TLA, infringes
any third party Intellectual Property because of; (i) the
combination of the ARM Technology with other products not
supplied by ARM if such infringement would not have occurred but
for such combination; (ii) the modification by LICENSEE of the
ARM Technology if such infringement would not have occurred but
for such modification; (iii) the process of synthesizing any ARM
Technology including but not limited to the use by LICENSEE of
LICENSEE’s or LICENSEE’s agent’s cell libraries if such
infringement would not have occurred but for the application of
such process; or (iv) any manufacturing process applied to the
ARM Technology by LICENSEE if such infringement would not have
occurred but for the application of such process, then LICENSEE
agrees to indemnify ARM for any legal costs (including
attorney’s fees) reasonably incurred by ARM in defending such
suit, up to a maximum limit of Two Million US Dollars
(US$2,000,000) per suit, provided that LICENSEE is notified
promptly in writing of the suit and that at LICENSEE’s request,
LICENSEE is given control of and all requested reasonable
assistance to defend such suit.
	 
	12.4	 	ARM shall only be liable under Clause 12.1 for any damages
awarded by a court for infringement by any ARM Technology of the
Intellectual Property of a third party, up to the date upon
which such court issues its judgement. ARM shall have no
continuing liability under Clause 12.1 for any loss suffered by
LICENSEE in respect of the same infringement after the date of
such judgement.
	 
	13.	 	Limitation of Liability
	 
	13.1	 	EXCEPT IN RESPECT OF ANY BREACH OF THE PROVISIONS OF CLAUSE 3
(CONFIDENITIALITY), IN RESPECT OF WHICH A PARTY’S LIABILITY
SHALL BE UNLIMITED, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR
ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES
WHETHER SUCH DAMAGES ARE ALLEGED AS A RESULT OF TORTIOUS CONDUCT
(INCLUDING NEGLIGENCE) OR BREACH OF CONTRACT OR OTHERWISE EVEN
IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.
	 
	13.2	 	NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS TLA,
THE MAXIMUM LIABILITY OF ARM TO LICENSEE IN AGGREGATE FOR ALL
CLAIMS MADE AGAINST ARM IN CONTRACT TORT OR OTHERWISE UNDER OR
IN CONNECTION WITH THE SUBJECT MATTER OF EACH ANNEX 1 SHALL NOT
EXCEED THE TOTAL AMOUNT OF THE FEES (DEFINED IN CLAUSE 6.1) PAID
BY LICENSEE TO ARM UNDER SUCH ANNEX 1. THE EXISTENCE OF MORE
THAN ONE CLAIM OR SUIT WILL NOT ENLARGE OR EXTEND THE LIMIT.
LICENSEE RELEASES ARM FROM ALL OBLIGATIONS, LIABILITY, CLAIMS OR
DEMANDS IN EXCESS OF THIS LIMITATION.
	 
	13.3	 	NOTHING IN THIS CLAUSE SHALL OPERATE TO EXCLUDE LIABILITY FOR
DEATH OR PERSONAL INJURY RESULTING FROM EITHER PARTY’S
NEGLIGENCE.
	 
	13.4	 	The parties hereby acknowledge that the provisions of this
Clause 13 allocate the risks under this Agreement between ARM
and Customer after negotiation and ARM’s pricing reflects this
allocation of risk and the limitation of liability specified
herein.
	 
	 	 	Initials of ARM authorised signatory
	 
	 	 	Initials of HYNIX authorised signatory

11 of 15

 

	14.	 	Term, Termination and Expiration
	 
	 	 	TLA Term
	 
	14.1	 	Except as provided below, this TLA shall commence on the
Effective Date and shall continue in force unless earlier
terminated in accordance with the provisions of either of Clause
14.2 or Clause 14.3.
	 
	 	 	Termination by Either Party
	 
	14.2	 	Without prejudice to any other right or remedy which may be
available to it, either party shall be entitled to immediately
terminate this TLA (including all Annexes incorporated
thereunder) by giving written notice to the other, if the other
party:

	 	(i)	 	has committed a material breach of any of its
obligations hereunder which is not capable of remedy;
or
	 
	 	(ii)	 	has committed a material breach of any of its
obligations hereunder which is capable of remedy but
which has not been remedied within a period of sixty
(60) days following receipt of written notice to do
so; or
	 
	 	(iii)	 	any circumstances arise which would entitle the
court or a creditor to appoint a receiver,
administrative receiver or administrator or to
present a winding-up petition or make a winding-up
order; or
	 
	 	(iv)	 	makes any voluntary arrangement with its creditors
for the general settlement of its debts or becomes
subject to an administration order; or
	 
	 	(v)	 	has an order made against it, or passes a resolution,
for its winding-up (except for the purposes of
amalgamation or reconstruction) or has a receiver or
similar officer appointed over all or substantially
all of its property or assets.

	 	 	Termination by ARM
	 
	14.3	 	If a court of competent jurisdiction issues a judgement that any
ARM Technology infringes the Intellectual Property of a third
party, then the licences granted to such ARM Technology under
this TLA shall terminate unless LICENSEE or ARM has obtained the
necessary rights, from such third party, for LICENSEE to
continue to exercise such licenses.
	 
	 	 	Annex Expiry
	 
	14.4	 	Each Annex shall commence on the Annex Effective Date (defined
in each Annex 1) and shall continue in force for the Term set
out therein unless earlier terminated in accordance with the
provisions either Clause 14.2 or Clause 14.3.
	 
	15.	 	Effect of Expiry and Termination
	 
	 	 	Termination by ARM
	 
	15.1	 	Upon termination of this TLA by ARM in accordance with either of
Clause 14.2, LICENSEE will immediately discontinue any use and
distribution of all ARM Technology, ARM Confidential Information
and any products embodying such technology or information.
LICENSEE shall, at ARM’s option, either destroy or return to ARM
any ARM Confidential Information, including any copies thereof
in its possession and any ARM Technology or derivatives
(including any translation, modification, compilation,
abridgement or other form in which the ARM Technology has been
recast, transformed or adapted) thereof in its possession.
Within one month after termination of this TLA LICENSEE will
furnish to ARM a certificate signed by a duly authorised
representative of LICENSEE that to the best of his or her
knowledge, information and belief, after due enquiry, LICENSEE
has complied with provisions of this Clause.
	 
	 	 	Upon termination of this TLA by ARM in accordance with either of Clauses 14.2; (i) the
termination date shall be treated as the end of a Quarter for the purpose of accounting for
Royalties to ARM; and (ii) any fees outstanding,

12 of 15

 

	 	 	whether or not such fees have become due at the date of termination) shall become due and
payable to ARM in accordance with the provisions of Clause 6.
	 
	 	 	Termination by LICENSEE
	 
	15.2	 	Upon termination of this TLA by LICENSEE pursuant to Clause 14.2
the licenses granted under Clause 2 of this TLA shall survive
such termination, subject to the terms and conditions of this
TLA including but not limited to LICENSEE’s continued payment,
to ARM, its liquidator or receiver of any fees and Royalties due
at the date of termination or in the future in accordance with
the provisions of Clause 6.
	 
	 	 	Annex 1 Termination
	 
	15.3	 	Upon termination of any Annex 1 in accordance with the
provisions of Clause 14.3 LICENSEE will immediately discontinue
any use and distribution of all the relevant ARM Technology, ARM
Confidential Information and any products embodying such
technology or information. LICENSEE shall, at ARM’s option,
either destroy or return to ARM any ARM Confidential
Information, including any copies thereof in its possession and
any ARM Technology or derivatives (including any translation,
modification, compilation, abridgement or other form in which
the ARM Technology has been recast, transformed or adapted)
thereof in its possession licensed or disclosed to LICENSEE in
connections with such Annex 1. Within one month after
termination of the relevant Annex 1, LICENSEE will furnish to
ARM a certificate signed by a duly authorised representative of
LICENSEE that to the best of his or her knowledge, information
and belief, after due inquiry, LICENSEE has complied with
provisions of this Clause 15.3.
	 
	 	 	Upon termination of any Annex 1 by ARM in accordance with either of Clauses 14.3; (i) the
termination date shall be treated as the end of a Quarter for the purpose of accounting for
Royalties to ARM; and (ii) any fees outstanding, whether or not such fees have become due at
the date of termination) shall become due and payable to ARM in accordance with the provisions
of Clause 6.
	 
	 	 	Annex 1 Expiry
	 
	15.4	 	Upon expiry of any Annex 1 in accordance with the provisions of Clause 14.4,

	 	(i)	 	any licences granted under Section 2 of the relevant
Annex 1, to use copy and modify the relevant ARM
Technology to develop products shall cease;
	 
	 	(ii)	 	any licences granted under Section 2 of the relevant
Annex 1, to manufacture, have manufactured and sell
supply or otherwise distribute products developed
using the relevant ARM Technology shall survive
subject to the terms and conditions of this TLA and
subject to the continued payment to ARM of any fees
and Royalties due at the time of expiry and in the
future under the terms of this TLA and provided that
such products are already being distributed at the
date of expiry of the Annex 1; and
	 
	 	(iii)	 	except as expressly provided to the contrary in
this Clause 15.4(iii), LICENSEE shall at ARM’s
option, either destroy or return to ARM any ARM
Confidential Information, including any copies
thereof in its possession and any ARM Technology or
derivatives (including any translation,
modification, compilation, abridgement or other
form in which the ARM Technology has been recast,
transformed or adapted) thereof in its possession
but LICENSEE may keep one copy of the relevant ARM
Technology for the purpose of supporting the
products referred to in Clause 15.4(ii).

	15.5	 	Upon termination the provisions of Clauses 1, 3, 6 (to the
extent that any obligation under this Clause remains
outstanding), 11, 13, 15 and 16 shall survive termination.
	 
	16.	 	General
	 
	16.1	 	All communications between the parties including, but not
limited to, notices, royalty reports, error or bug reports, the
exercise of options, and support requests shall be in the
English language.
	 
	16.2	 	All notices which are required to be given hereunder shall be in
writing and shall be sent to the address of the recipient set
out below (either party may change their respective address for
service by giving notice of the change to the other party). Any
such notice may be delivered personally, by commercial overnight
courier or facsimile transmission which shall be followed by a
hard copy and shall be deemed to have been served if by hand
when

13 of 15

 

	 	 	delivered, if by commercial overnight courier 48 hours after deposit with
such courier, and if by facsimile transmission when dispatched.

	 	 	 
	ARM Contact	 	LICENSEE Contact
	 
	 

	16.3	 	Neither party shall assign or otherwise transfer this TLA or any
of its rights and obligations hereunder whether in whole or in
part without the prior written consent of the other, such
consent not to be unreasonably withheld. An assignment shall be
deemed to include, without limitation; (i) a merger of one party
with a third party, whether or not the party is a surviving
entity; (ii) any transaction or series of transactions whereby a
third party acquires direct or indirect power to control the
management and policies of the party, whether through the
acquisition of voting securities, by contract or otherwise; or
(iii) the sale of more than fifty percent (50%) of the party’s
assets whether in a single transaction or series of
transactions.
	 
	16.4	 	Neither party shall be liable for any failure or delay in its
performance under this TLA due to causes, including, but not
limited to, acts of God, acts of civil or military authority,
fires, epidemics, floods, earthquakes, riots, wars, sabotage,
third party industrial disputes and governments actions, which
are beyond its reasonable control; provided that the delayed
party: (i) gives the other party written notice of such cause
promptly, and in any event within fourteen (14) days of
discovery thereof; and (ii) uses its reasonable efforts to
correct such failure or delay in its performance. The delayed
party’s time for performance or cure under this Clause 16.4
shall be extended for a period equal to the duration of the
cause.
	 
	16.5	 	ARM and LICENSEE are independent parties. Neither company nor
their employees, consultants, contractors or agents are agents,
employees or joint venturers of the other party, nor do they
have the authority to bind the other party by contract or
otherwise to any obligation. Neither party will represent to the
contrary, either expressly, implicitly, by appearance or
otherwise.
	 
	16.6	 	Except as expressly provided under Clause 3 of this TLA, the
parties agree that the terms and conditions of this TLA shall be
treated as Confidential Information hereunder and shall not be
disclosed without the consent of both parties.
	 
	16.7	 	Failure or delay by either party to enforce any provision of
this TLA shall not be deemed a waiver of future enforcement of
that or any other provision.
	 
	16.8	 	The provisions contained in each clause and sub-clause of this
TLA shall be enforceable independently of each of the others and
if a provision of this TLA is, or becomes, illegal, invalid or
deemed unenforceable by any court or administrative body of
competent jurisdiction it shall not affect the legality,
validity or enforceability of any other provisions of this TLA.
If any of these provisions is so held to be illegal. Invalid or
unenforceable but would be legal, valid or enforceable if some
part of the provision were deleted, the provision in question
will apply with such modification as may be necessary to make it
legal, valid or enforceable.
	 
	16.9	 	This TLA, including all Annexes, constitutes the entire
agreement between the parties with respect to the subject matter
hereof, and supersedes and replaces all prior or contemporaneous
understandings or agreements, written or oral, regarding the
subject matter. Except in respect of changes to the Trademark
Guidelines which may be changed in accordance with the
provisions of Clause 2.9, no amendment to or modification of
this TLA shall be binding unless in writing and signed by a duly
Authorized representative of both parties.
	 
	16.10	 	The ARM Technology provided under this TLA is subject to U.S.
export control laws, including the U.S. Export Administration
Act and its associated regulations, and may be subject to
export or import regulations in other countries. LICENSEE
agrees to comply fully with all laws and regulations of the
United States and other countries (“Export Laws”) to assure
that neither the ARM Technology, nor any direct products
thereof are; (i) exported, directly or indirectly, in violation
of Export Laws, either to any countries that are subject to U.S
export restrictions or to any end user who has been prohibited
from participating in the U.S. export transactions by any
federal agency

14 of 15

 

	 	 	of the U.S. government; or (ii) intended to be used for any purpose
prohibited by Export Laws, including, without limitation, nuclear, chemical, or
biological weapons proliferation.
	 
	16.11	 	Any ARM Technology provided to the US Government pursuant to
solicitations issued on or after December
1st 1995 is provided with the rights and
restrictions described elsewhere herein. Any ARM Technology
provided to the US Government pursuant to solicitations issued
prior to December 1st 1995 is provided
with “Restricted Rights” as provided for in FAR, 48 CFR
52.227-14 (JUNE 1987) or DFAR, 48 CFR 252.227-7013 (OCT 1988),
as applicable. LICENSEE shall be responsible for ensuring that
the ARM Technology is marked with the “Restrictive Rights
Notice” or “Restrictive Rights Legend”, as required.
	 
	16.12	 	Except as expressly stated in this TLA, the Contracts (Rights
of Third Parties) Act 1999 and any legislation amending or
replacing that Act shall not apply in relation to this TLA or
any agreement, arrangement, understanding, liability or
obligation arising under or in connection with this TLA and
nothing in this TLA shall confer on any third party the right
to enforce any provision of this TLA.
	 
	16.13	 	The validity, construction and performance of this TLA shall be
governed by English Law. In the event that ARM commences
proceedings against LICENSEE under this Agreement, the parties
agree to submit to the jurisdiction of the Seoul District
Court, Korea, for the purpose of hearing and determining any
disputes arising out of this Agreement. In the event that
LICENSEE commences proceedings against ARM under this
Agreement, the parties agree to submit to the jurisdiction of
the High Court of Justice, London, England, for the purpose of
hearing and determining any disputes arising out of this
Agreement.
	 
	 	 	IN WITNESS WHEREOF the parties have caused this TLA to be executed by their duly
authorised representatives:

	 	 	 	 	 	 	 	 	 
	ARM LIMITED:	 	HYNIX SEMICONDUCTOR INC.	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED

	 	 

	 	SIGNED
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	NAME:

	 	 	 	NAME:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	TITLE:

	 	 	 	TITLE:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	DATE:

	 	 	 	DATE:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 

15 of 15exv10w16

Exhibit 10.16

					
	 	 	 	 	 
	20 February, 2007
	 	CONFIDENTIAL
	 	LEC-DMA-00137-V3.0

This Design Migration Agreement (“Agreement”) is made the 01 day of May 2007

between

ARM
LIMITED whose registered office is situated at 110 Fulbourn Road , Cambridge, CBI 9NJ, United Kingdom (“ARM”);

and

MAGNACHIP SEMICONDUCTOR, LTD. whose principal place of bussiness is situated at c/o 891 Daechi-dong,
Gangnam-gu, Seoul 135-738, Korea (“Customer”).

THE PARTIES HEREBY AGREE AS FOLLOWS;

	1.	 	Definitions
	 
	 	 	“Active Project” means a project described in a Project Statement for which
any fees as set out in the Fees Statement remain unpaid.
	 
	 	 	“ARM Services” means the services to be provided by ARM to Customer and
described in Section 1 of each Statement of Work, subject to any change thereto
effected by Change Order.
	 
	 	 	“ARM Deliverables” means the items identified in Section 2 of each Statement
of Work, subject to any
change thereto effected by Change Order.
	 
	 	 	“ARM Delivery Schedule” means the forecast dates for the performance of the
ARM Services for and delivery of the ARM Deliverables to, Customer and set out
respectively in Section 1 and Section 2 of each Statement of Work, subject to any
change thereto effected by Change Order.
	 
	 	 	“Assumptions” means the assumptions made by ARM and circumstances
contemplated by the parties in respect of each project as at the Effective Date
(defined in each Project Statement) as set out in Section 5 of each Project
Statement.
	 
	 	 	“Change Order” means a document signed by both parties recording any changes
to any Project Statement from time to time that have been mutually agreed by the
parties.
	 
	 	 	“Confidential Information” means; (i) ARM Deliverables (including any
translation, modification, compilation, abridgement or other form in which the ARM
Deliverables have been recast, transformed or adapted) and any trade secrets
relating to the ARM Deliverables; (ii) any information designated in writing by
either party, by appropriate legend, as confidential; (iii) any information which
if first disclosed orally is identified as confidential at the time of disclosure
and is thereafter reduced to writing for confirmation and sent to the other party
within thirty (30) days after its oral disclosure and designated, by appropriate
legend as confidential; and (iv) the terms and conditions of this Agreement
	 
	 	 	“Customer Deliverables” means the items identified in Section 3 of each
Statement of Work, subject to any change thereto effected by Change Order.
	 
	 	 	“Customer Delivery Schedule” means the dates for delivery of the Customer
Deliverables to ARM and set out in Section 3 of each Statement of Work, subject to
any change thereto effected by Change Order.
	 
	 	 	“Design Rules” means the process design rules specified by Customer and
identified in Section 4 of each Statement of Work.
	 
	 	 	“Fees Statement” means the statement (Schedule 2 of each Project Statement)
setting out the amount of or basis for charging fees due to ARM for the
performance of the ARM Services and delivery of the ARM Deliverables to Customer
for each Project Statement together with the dates upon which such fees shall be
due, subject to any change thereto effected by Change Order.
	 
	 	 	“Intellectual Property” means any patents, patent rights, trade marks,
service marks, registered designs, topography or semiconductor mask work rights,
applications for any of the foregoing, unregistered design

					
	 	 	 	 	 
	NM/CL
	 	1
	 	ARM/Magnachip Semiconductor Ltd.

 

 

			
	[*****] 	 -	 Portions of this exhibit are subject to a request for confidential treatment and
have been redacted and filed separately with the Securities and Exchange Commission.

 

					
	 	 	 	 	 
	20 February, 2007
	 	CONFIDENTIAL
	 	LEC-DMA-00137-V3.0

	 	 	rights, copyright and any other similar protected rights in
any country to the extent recognised by
any relevant jurisdiction as intellectual property, trade secrets, know-how and Confidential
Information.
	 
	 	 	“Prefab Characterisation Conditions” means the prefabrication characterisation conditions specified
by Customer and identified in Section 4 of each Statement of Work.
	 
	 	 	“Project Statement” means a statement (Annexed hereto) signed by both parties and referencing this
Agreement comprising a Statement of Work and Fees Statement, subject to any change thereto effected
by Change Order.
	 
	 	 	“Statement of Work” means the statement (Schedule 1 of each Project Statement) detailing each
separate project undertaken by ARM for Customer from time to time under the terms and conditions
of this Agreement and including a description of the ARM Services, the ARM Deliverables, the ARM
Delivery Schedule, a description of the Customer Deliverables and the Customer Delivery Schedule,
subject to any change thereto effected by Change Order.

	 
	 	 	“Subsidiary” means any company the majority
of whose voting shares is now or hereafter owned or controlled, directly or indirectly, by a party
hereto. A company shall be a Subsidiary only so long as such control exists.
	 
	 	 	“TLA” means the technology license agreement identified on page one (1) of each Project Statement.
	 
	2.	 	Provision of ARM Services
	 
	2.1	 	ARM shall perform the ARM Services for Customer in accordance with the terms and conditions
of this Agreement.
	 
	2.2	 	ARM shall perform the ARM Services utilising such resources, employees and subcontractors as
ARM in its sole discretion deems appropriate.
	 
	2.3	 	ARM shall use commercially reasonable efforts to perform the ARM Services in accordance with
the ARM Delivery Schedule.
	 
	3.	 	ARM Deliverables
	 
	 	 	Change Control
	 
	3.1	 	Either party may request an amendment to a Project Statement by Change Order.
	 
	3.2	 	Customer may request a Change Order by submitting a request for a Change Order (“Change Order
Request”) to ARM. A Change Order Request may be oral or in writing and shall not require any
formality. Any request from Customer which ARM reasonably believes will affect the terms of a
Project Statement may be deemed by ARM to be a Change Order Request ARM shall review any
Change Order Request in good faith and report to Customer in writing in the form of a draft
Change Order; (i) whether such change is technically feasible and if technically feasible;
(ii) the reasonable impact on the ARM Delivery Schedule and Customer Delivery Schedule; and
(iii) any necessary revision to the ARM Services, ARM Deliverables, Customer Deliverables and
Fees Statement, as appropriate. ARM shall be under no obligation to accept the terms of any
Change Order Request and Customer shall be under no obligation to accept the terms of any
draft Change Order. If the terms of a Change Order Request are agreed by ARM and the terms of
a respective draft Change Order are agreed by Customer the draft Change Order shall be signed
by both parties. Customer shall bear all costs and expenses associated with any variation
requested by Customer to any Project Statement including the cost of any feasibility study
connected with the analysis of such variation. ARM shall be entitled to continue performing
the ARM Services in accordance with the relevant Project Statement until the parties have
agreed the terms of any Change Order

					
	 
	 
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	3.3	 	ARM may request a Change Order in response to a Change Order Request by Customer by
submitting a draft Change Order to Customer. Within ten (10) working days of receiving a draft
Change Order from ARM, Customer shall review the draft Change Order in good faith and report
to ARM in writing whether the terms of such draft Change Order are acceptable. Customer shall
be under no obligation to accept the terms of any draft Change Order. If the terms of a draft
Change Order are accepted by Customer the draft Change Order shall be signed by both parties.
If no report on the draft Change Order is received by ARM from Customer within ten (10)
working days of receipt of the Change Order by Customer then ARM may deem the terms of such
draft Change Order to have been agreed by Customer.
	 
	3.4	 	Any Change Order shall be attached to the Project Statement. After execution of a Change
Order by both parties the amendments detailed therein shall be incorporated into the Project
Statement and Fees Statement as appropriate and shall form part of this Agreement
	 
	 	 	Delivery
	 
	3.5	 	Subject to the prior execution of the TLA by ARM and Customer, ARM shall use commercially
reasonable efforts to deliver the ARM Deliverables to Customer in accordance with the ARM
Delivery Schedule. ARM shall have no obligation to deliver the ARM Deliverables to Customer
prior to execution of the TLA by ARM and Customer.
	 
	4	 	ARM Services; Limited Warranty and Limitation of Liability
	 
	4.1	 	ARM shall use reasonable skill and care in performing the ARM Services for Customer.
	 
	4.2	 	Customer acknowledges that changes to any of the Design
Rules, Prefab Characterisation
Conditions or Assumptions may affect the ability of ARM to perform the ARM Services in
accordance with the ARM Delivery Schedule and in such event the parties shall work together in
good faith to minimize the impact of the change. Any change to the Project Statement resulting
from any changes to any of the Design Rules, Prefab Characterization Conditions or Assumptions
shall be managed by Change Order in accordance with the provisions of Clause 3. ARM shall have
no liability for any delays or increased costs in the provision of the ARM Services which
result directly from changes to any of the Design Rules, Prefab Characterization Conditions or
Assumptions.
	 
	5.	 	ARM Deliverables and Limitation of Liability
	 
	5.1	 	Customer acknowledges that changes to any of the Design
Rules, Prefab Characterisation
Conditions or Assumptions set out by the parties in the relevant Statement of Work may affect
the ability of ARM to deliver the ARM Deliverables in accordance with the ARM Delivery
Schedule and in such event the parties shall work together in good faith to minimize the
impact of the change. Any change to the Project Statement resulting from any changes to any of
the Design Rules, Prefab Characterization Conditions or Assumptions shall be managed by Change
Order in accordance with the provisions of Clause 3. ARM shall have no liability for any
delays or increased costs in the delivery of the ARM Deliverables which result directly from
changes to any of the Design Rules, Prefab Characterization
Conditions or Assumptions.
	 
	6.	 	Customer Deliverables
	 
	6.1	 	Customer shall provide ARM with all necessary accurate information and support and
co-operation that may be reasonably required to enable ARM to perform the ARM Services for and
deliver the ARM Deliverables to Customer in accordance with the ARM Delivery Schedule.
	 
	6.2	 	Customer shall use commercially reasonable efforts to deliver the Customer Deliverables to
ARM in accordance with the Customer Delivery Schedule.

					
	 	 	 	 	 
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	6.3	 	ARM shall test each Customer Deliverable within ten (10) days of its receipt from Customer,
and upon completion of the testing shall report to Customer, in writing, within two (2)
working days whether or not the Customer Deliverable is accepted by ARM. If ARM believes that
any Customer Deliverable is not acceptable, ARM shall provide Customer with details of why
the deliverable is not acceptable and Customer shall use reasonable commercial efforts to
modify the Customer Deliverable so that it is acceptable to ARM.
	 
	6.4	 	If Customer fails; (i) to deliver, in accordance with the Customer Delivery Schedule,
Customer Deliverables which are accepted by ARM in accordance with the provisions of Clause
6.3; or (ii) to provide ARM with all necessary, accurate information, support and co-operation
that may be reasonably required to enable ARM to provide the ARM Services for and delivery of
the ARM Deliverables to Customer in accordance with the ARM Delivery Schedule and such failure
prevents ARM from meeting any of its obligations under Clauses 2.3 and 3.5, ARM shall be
permitted to extend any relevant dependent dates in the ARM Delivery Schedule by Change Order
for such period as is reasonable. If ARM’s cost of providing the ARM Services to Customer is
increased as a result of a failure by the Customer; (i) to deliver, in accordance with the
Customer Delivery Schedule, Customer Deliverables which are accepted by ARM in accordance with
the provisions of Clause 6.3; or (ii) to provide ARM with all necessary, accurate information,
support and co-operation that may reasonably be required to enable ARM to provide the ARM
Services for and delivery of the ARM Deliverables to Customer in accordance with the ARM
Delivery Schedule, then the Customer shall pay such increased costs reasonably incurred on a
time and materials basis at ARM’S then prevailing consulting rate. Such increased costs
reasonably incurred may include the cost of time during which ARM resources are under utilised
as a direct result of the Customers failure to deliver, in accordance with the Customer
Delivery Schedule, any Customer Deliverable which is accepted by ARM in accordance with the
provisions of Clause 6.3. Any such change in the cost of providing the ARM Services to Customer
shall be managed by Change Order in accordance with the provisions of Clause 3.3 except that
provided the terms of the Change Order are reasonable Customer shall have no right to reject
such Change Order.
	 
	7.	 	Fees, Taxes and Payment
	 
	7.1	 	In consideration of ARM performing the ARM Services for and delivering the ARM Deliverables
to Customer pursuant to each Statement of Work, fees shall be due to ARM from Customer in
accordance with the Fees Statement.
	 
	7.2	 	Unless otherwise agreed in writing by the parties Customer shall pay ARM all prior approved
reasonable traveling, accommodation and subsistence expenses reasonably incurred by ARM when
necessarily visiting Customer’s premises or the premises of any third party in the
performance of the ARM Services.
	 
	7.3	 	All sums stated under the Fees Statement do not include taxes. All applicable taxes shall be
payable by Customer in accordance with relevant legislation in force at the relevant tax
point. Any income or other tax which Customer is required by law to pay or withhold on behalf
of ARM with respect to any fees payable to ARM under this Agreement may be deducted from the
amount of such fees otherwise due, provided, however, that in regard to any such deduction,
Customer shall give to ARM such assistance as may be necessary to enable or assist ARM to
claim exemption therefore, or credit therefore, and shall upon request furnish to ARM such
certificates and other evidence of deduction and payment thereof as ARM may properly require.
	 
	7.4	 	Customer shall pay all fees due to ARM under the terms of this Agreement within thirty (30)
days of receipt of ARM’s invoice therefor (“Due Date”).
	 
	7.5	 	If any sum under this Agreement is not paid by the Due Date (as defined in Clause 7.4), then
(without prejudice to ARM’s other rights and remedies in addition to the invoice amount) ARM
reserves the right to charge interest on such sum on a day to day basis (as well after as
before any judgment) from the Due Date to the date of payment at the rate of five (5%) per
cent per annum above the base rate of National Westminster Bank PLC from time to time in
force.
	 
	7.6	 	If Customer fails to pay any sum due to ARM under this Agreement in accordance with the Fees
Statement and the provisions of this Clause 7, ARM shall, upon giving at least seven (7) days
notice in writing to

					
	 	 	 	 	 
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	 	 	Customer, be entitled to stop providing the ARM Services and withhold delivery of any ARM
Deliverable until such payment is made. If ARM has stopped providing the ARM Services to
Customer in accordance with this Clause 7.6, then ARM shall have no obligation to resume the
performance of the ARM Services until Customer pays to ARM, in addition to any sums properly
due but not paid, a fee equal to [*****] of the total fees due to ARM in accordance with the
relevant Fees Schedule.
	 
	7.7	 	All sums properly due to ARM under this Agreement shall be paid in full and Customer shall
not be entitled to assert against ARM any credit, set-off or counterclaim arising under any
Project Statement in order to justify withholding payment of any sum properly due under any
other Project Statement. Obligations under each Project Statement shall be construed as
divisible from obligations under any other Project Statement for the purposes of interpreting
this Clause 7.7.
	 
	8	 	Confidentiality
	 
	8.1	 	Subject to the provisions of Clause 8.2, the confidentiality provisions set out in the TLA
shall apply (prior to the execution of the TLA as well as after) to Confidential Information
disclosed between the parties under this Agreement.
	 
	8.2	 	ARM is hereby authorised to disclose the Customer’s Confidential Information to third party
subcontractors or consultants to the extent necessary for the performance by the
sub-contractor or consultant (including without limitation any supplier of tools or equipment
used in ARM’s design flow) of any of the work under any Statement of Work that is assigned to
it provided always that any such subcontractor or consultant is bound by provisions of
confidentiality no less stringent than those provided by this Clause 8.
	 
	8.3	 	ARM shall be permitted to disclose Customer Confidential Information to Subsidiaries of ARM
subject to the same terms and conditions of confidentiality as are set out in this Agreement
	 
	9.	 	Intellectual Property Ownership and Licensing

ARM Deliverables

	9.1	 	The ARM Deliverables shall be deemed to be derived from the ARM Technology (as defined in the
TLA) under Customer’s have designed rights granted in Clause 2.2 of the TLA and the terms of
the TLA shall apply to such ARM Deliverables accordingly.

Customer Deliverables

	9.2	 	Unless otherwise agreed in writing between the parties, all right, title and interest in the
Customer Deliverables and any Intellectual Property embodied therein shall vest in and be
owned by Customer.

	9.3	 	Customer hereby grants to ARM, a royalty free, non-exclusive, non-transferable, worldwide,
license (or sublicense as appropriate) to use, copy and modify the Customer Deliverables and
sublicense the rights to use, copy and modify the Customer Deliverables solely to ARM’s
subcontractors and solely for the purpose of creating the ARM Deliverables pursuant to the
terms of this Agreement.

	9.4	 	Except as specifically licensed in accordance with Clause 9.3, ARM acquires no right, title or
interest in the Customer Deliverables or the Intellectual Property embodied therein. In no
event shall the licenses granted under Clause 9.3 of this Agreement be construed as granting
to ARM, expressly or by implication, estoppel or otherwise, a license to use any Customer or
third party technology other than the Customer Deliverables.

	9.5	 	ARM shall not remove or obscure any notice incorporated into the Customer Deliverables by
Customer to protect any Intellectual Property of Customer.

					
	 	 	 	 	 
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	[*****] 	 -	 Portions of this exhibit are subject to a request for confidential treatment and
have been redacted and filed separately with the Securities and Exchange Commission.

 

					
	 	 	 	 	 
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	10.	 	Intellectual Property Warranties and Indemnities
	 
	10.1	 	Subject to the provisions of Clause 10.2, the intellectual property warranties and
indemnities set out in the TLA shall apply to the ARM Deliverables.
	 
	10.2	 	ARM shall have no liability for any infringement arising from the use or incorporation into
the ARM Deliverables, of any Customer Deliverables, if such infringement would not have
occurred but for such use or incorporation.

	11.	 	Limitation of Liability
	 
	11.1	 	EXCEPT IN RESPECT OF ANY BREACH OF THE PROVISIONS OF CLAUSE 8 (CONFIDENTIALITY), IN NO EVENT
SHALL EITHER PARTY BE LIABLE UNDER THIS AGREEMENT FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES WHETHER SUCH DAMAGES ARE ALLEGED AS A RESULT OF TORTIOUS CONDUCT OR
BREACH OF CONTRACT OR OTHERWISE EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES. SUCH DAMAGES SHALL INCLUDE BUT SHALL NOT BE LIMITED TO THE COST OF REMOVAL
AND REINSTALLATION OF GOODS, LOSS OF GOODWILL, LOSS OF PROFITS, LOSS OR USE OF DATA,
INTERRUPTION OF BUSINESS OR OTHER ECONOMIC LOSS.
	 
	11.2	 	EXCEPT IN RESPECT OF ANY CLAIM UNDER THE INTELLECTUAL PROPERTY INDEMNITY FOR WHICH THE
LIMITATION OF LIABILITY SET OUT IN THE TLA SHALL APPLY, THE MAXIMUM LIABILITY OF ARM TO
CUSTOMER IN AGGREGATE FOR ALL CLAIMS MADE AGAINST ARM IN CONTRACT TORT OR OTHERWISE UNDER OR
IN CONNECTION WITH THE SUBJECT MATTER OF EACH PROJECT STATEMENT UNDER THIS AGREEMENT SHALL
NOT EXCEED THE TOTAL OF SUMS PAID BY CUSTOMER TO ARM IN RESPECT OF SUCH PROJECT STATEMENT.
	 
	11.3	 	NOTHING IN THIS CLAUSE 11 SHALL OPERATE TO EXCLUDE LIABILITY FOR DEATH OR PERSONAL INJURY
RESULTING FROM EITHER PARTY’S NEGLIGENCE.
	 
	12.	 	Termination
	 
	12.1	 	Customer may terminate any Active Project upon giving at least thirty (30) days prior
written notice of its intention to do so to ARM.
	 
	12.2	 	Without prejudice to any other right or remedy which may be available to it either party
shall be entitled summarily to terminate any or all Active Projects by giving written notice
to the other party if;

	 	(i)	 	the other party has committed a material breach of any of its obligations
under this Agreement which is not capable of remedy;
	 
	 	(ii)	 	the other party has committed a material breach of any of its obligations
under this Agreement which is capable of remedy but which has not been remedied within
a period of fifteen (15) working days following receipt of written notice from the
party seeing remedy to do so;
	 
	 	(iii)	 	the other party makes any voluntary arrangement with its creditors or becomes
subject to an administration order; or
	 
	 	(iv)	 	the other party has an order made against it, or passes a resolution, for its
winding-up (except for the purpose of bona fide solvent amalgamation or reconstruction)
or has an encumbrancer take possession or has a receiver or similar officer appointed
over a material part of its property or assets.

					
	 	 	 	 	 
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	13.	 	Effect of Termination
	 
	13.1	 	Upon termination of this Agreement in respect of an Active Project, by Customer for
convenience in accordance with the provisions of Clause 12.1, without prejudice to any other
right or remedy which may be available to either party;

	 	(i)	 	the licences granted to Customer hereunder and related to the terminated
Active Project shall cease;
	 
	 	(ii)	 	the rights granted to ARM hereunder and related to the terminated Active Project shall
cease;
	 
	 	(iii)	 	Customer shall immediately return to ARM the ARM Deliverables and all ARM
Confidential Information related to the ARM Deliverables identified in the Statement
of Work for the terminated Active Project, including any copies and modified versions
thereof in Customer’s possession;
	 
	 	(iv)	 	ARM shall immediately return to Customer or delete from ARM’s system,
all Customer Deliverables and Customer Confidential Information related to Customer
Deliverables identified in the Statement of Work for the terminated Active Project,
including any copies and modified versions thereof; and
	 
	 	(v)	 	Customer shall pay, to ARM, within thirty (30) days of receipt of an invoice therefor;

	 	(a)	 	any sums due to ARM by Customer, but not invoiced at the date of
termination, for any completed milestones as set out in the Fees Statement for
the terminated Active Project;
	 
	 	(b)	 	an amount representing the actual work performed, as at the date
of termination, by ARM (calculated at ARM’s then prevailing consulting rate)
towards completion of the next open milestone as set out in the Fees Statement
for the terminated Active Project; and
	 
	 	(c)	 	a termination fee of five percent (5%) of the total fees
(excluding any royalties) that would have been due under the Fees Statement for
the terminated Active Project had it not been terminated in accordance with the
provisions of Clause 12.1,

provided that the aggregate of any sums payable to ARM by Customer in accordance
with the provisions of Clauses 13.1(v)(a), 13.1(v)(b) and 13.1(iv)(c) shall not
exceed the fees set out in the Fees Statement for the terminated Active Project.

	13.2	 	Upon termination of an Active Project by Customer under the provisions of Clause 12.2,
without prejudice to any other right or remedy which may be available to either party;

	 	(i)	 	the licences granted to Customer hereunder and related to the terminated
Active Project shall survive;
	 
	 	(ii)	 	the rights granted to ARM hereunder and related to the terminated Active Project shall
cease;
	 
	 	(iii)	 	ARM shall immediately return to Customer or delete from ARM’s system, all
Customer Deliverables and Customer Confidential Information related to Customer
Deliverables identified in the Statement of Work for the terminated Active Project,
including any copies and modified versions thereof; and
	 
	 	(iv)	 	Customer shall pay, to ARM, within thirty (30) days of receipt of an invoice therefor,

	 	(a)	 	any sums due to ARM by Customer, but not invoiced at the date of
termination, for any completed milestones as set out in the Fees Statement for
the terminated Active Project; and

					
	 	 	 	 	 
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	 	(b)	 	an amount representing the actual work performed, as at the date of termination, by ARM
(calculated at ARM’s then prevailing consulting rate) towards completion of the next open
milestone as set out in the Fees Statement for the terminated Active Project;

provided that the aggregate of any sums payable to ARM by Customer in accordance with
the provisions of Clauses 13.2(iv)(a) and 13.2(iv)(b) shall not exceed the aggregate
of fees set out in the Fees Statement for the terminated Active Project.

	13.3	 	Upon termination of an Active Project by ARM under the provisions of Clause 12.2, without
prejudice to any other right or remedy which may be available to either party;

	 	(i)	 	the licences granted to Customer hereunder and related to the terminated Active Project shall
cease;
	 
	 	(ii)	 	the rights granted to ARM hereunder and related to the terminated Active Project shall cease;
	 
	 	(iii)	 	Customer shall immediately return to ARM the ARM Deliverables and all ARM Confidential
Information related to the ARM Deliverables identified in the Statement of Work for the
terminated Active Project, including any copies and modified versions thereof in Customer’s
possession;
	 
	 	(iv)	 	ARM shall immediately return to Customer or delete from ARM’s system, all Customer
Deliverables and Customer Confidential Information related to Customer Deliverables
identified in the Statement of Work for the terminated Active Project, including any copies
and modified versions thereof; and
	 
	 	(v)	 	Customer shall pay, to ARM, within thirty (30) days of receipt of an invoice therefor;

	 	(a)	 	any sums due to ARM by Customer, but not invoiced at the date of termination,
for any completed milestones as set out in the Fees Statement for the terminated
Active Project; and
	 
	 	(b)	 	an amount representing the actual work performed, as at the date of
termination, by ARM (calculated at ARM’s then prevailing consulting rate) towards
completion of the next open milestone as set out in the Fees Statement for the
terminated Active Project;

provided that the aggregate of any sums payable to ARM by Customer in accordance with the
provisions of Clauses 13.3(v)(a)  and 13.3(v)(b)  shall not exceed the aggregate of fees set out in the Fees
Statement for the terminated Active Project.

	13.4	 	The provisions of Clauses 1, 7 (to the extent that any payment has accrued and is
outstanding), 8, 11, 13 and 14 shall survive termination of the
Agreement.

14. General

	 	 	 	 	 
	 

	 	Notices
	 	All notices which are required to be given hereunder shall be in writing (which may include
electronic mail) and shall be sent to the address of the recipient set out in the Agreement or such
other address as the recipient may designate by notice given in accordance with the provisions of
this Clause. Any such notice may be delivered personally, by commercial overnight courier or
facsimile transmission which shall be followed by a hard copy and shall be deemed to have been
served if by hand when delivered, if by commercial overnight courier 48 hours after deposit with
such courier and if by facsimile transmission when dispatched.
	 
	 	 	 	 
	 

	 	Assignment
	 	Except as expressly provided elsewhere in this Agreement, neither party may assign or
otherwise transfer this Agreement or any of their rights and

					
	 	 	 	 	 
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	 	 	 	obligations hereunder whether in whole or in part without the prior, written, consent of the other.

	 	 	 	 	 
	 

	 	Non-association
	 	ARM and Customer are independent parties. Neither party or
their employees, consultants, contractors or agents, are
agents, employees or joint ventures of the other party nor
do they have the authority to bind the other party by
contract or otherwise to any obligation. Neither party
will represent to the contrary, either expressly,
implicitly, by appearance or otherwise.
	 
	 	 	 	 
	 

	 	Waiver
	 	Failure or delay by either party to enforce any provision
of this Agreement shall not be deemed a waiver of the
right to enforce, in the future, that or any other
provision of this Agreement.
	 
	 	 	 	 
	 

	 	Force Majeure
	 	ARM shall not be liable to Customer for any delay in or
failure to perform its obligations as a result of any
failure by a supplier to deliver a relevant deliverable to
ARM on time. If such delay continues for a period of more
than thirty (30) days, then either party shall be entitled
to terminate this Agreement by written notice to the other
party.
	 
	 	 	 	 
	 

	 	 	 	Neither party shall be liable for any failure or delay in its performance under
this Agreement due to causes, including, but not limited to, acts of God, acts of
civil or military authority, fires, epidemics, floods, earthquakes, riots, wars,
sabotage, third party industrial disputes and governments actions, which are
beyond its reasonable control; provided that the delayed party: (i) gives the
other party written notice of such cause promptly, and in any event within
fourteen (14) days of discovery thereof; and (ii) uses its reasonable efforts to
correct such failure or delay in its performance. The delayed party’s time for
performance or cure under this Clause shall be extended for a period equal to the
duration of the cause.
	 
	 	 	 	 
	 

	 	Severance
	 	The provisions contained in each clause and sub-clause of this Agreement shall be
enforceable independently of each of the others and if any provision of this Agreement is or
becomes invalid, illegal or deemed unenforceable for any reason by any court or
administrative body of competent jurisdiction it shall not affect the legality, validity or
enforceability of any other provisions of this Agreement. If any of these provisions is so
held to be illegal, invalid or unenforceable but would be legal, valid or enforceable if some
part of the provision were deleted, the provision in question will apply with such
modification as may be necessary to make it legal, valid or enforceable.
	 
	 	 	 	 
	 

	 	Entire Agreement
	 	This Agreement, including all Project Statements, constitutes the entire
agreement between the parties with respect to the subject matter hereof, and supersedes and
replaces all prior or contemporaneous understandings or agreements, written or oral,
regarding the subject matter. No amendment to or modification of this Agreement shall be
binding unless in writing and signed by a duly Authorized representative of both parties
	 
	 	 	 	 
	 

	 	Export
	 	The ARM Deliverables provided under this Agreement are subject to U.S. export control laws,
including the U.S. Export Administration Act and its associated regulations, and may be
subject to export or import regulations in other countries. Customer agrees to comply fully
with all laws and regulations of the United States and other countries (“Export Laws”) to
assure that neither the ARM Deliverables, nor any direct products thereof are; (i) exported,
directly or indirectly, in violation of Export Laws, either to any countries that are subject
to U.S export restrictions or to any end user who has been prohibited from participating in
the U.S. export transactions by any federal agency of the U.S. government; or (ii) intended
to be used for any purpose prohibited by Export Laws, including, without limitation, nuclear,
chemical, or biological weapons proliferation.

					
	 	 	 	 	 
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	 	 	 	Any ARM Deliverables provided to the US Government pursuant to solicitations
issued on or after December 1st 1995 is provided with the rights and
restrictions described elsewhere herein. Any ARM Deliverables provided to the US
Government pursuant to solicitations issued prior to December 1st 1995 is provided
with “Restricted Rights” as provided for in FAR, 48 CFR 52.227-14 (JUNE 1987) or
DFAR, 48 CFR 252.227-7013 (OCT 1988), as applicable. Customer shall be responsible
for ensuring that the ARM Deliverables is marked with the “Restrictive Rights
Notice” or “Restrictive Rights Legend”, as required.
	 
	 	 	 	 
	 

	 	Incorporation
	 	Each Project Statement generated from time to time and referencing this Agreement
shall be incorporated into and form part of this Agreement.
	 
	 	 	 	 
	 

	 	Precedence
	 	Notwithstanding anything to the contrary contained elsewhere in this Agreement, if any
of the provisions contained in a Project Statement conflict or are inconsistent with any of
the provisions of any of Clauses 1 to 14 of this Agreement inclusive, then to the extent that
the provisions contained in such Project Statement are inconsistent with any of the provisions
of any of Clauses 1 to 14 of this Agreement inclusive and solely for the purposes of
interpretation of this Agreement with respect to such Project Statement, the provisions
contained in such Project Statement shall prevail over and shall supersede the conflicting or
inconsistent provisions in Clauses 1 to 14 of this Agreement
inclusive.
	 
	 

	 	 	 	Notwithstanding anything to the contrary contained elsewhere in this Agreement or
any Project Statement, if any of the provisions contained in the TLA conflict or
are inconsistent with any of the provisions of any of Clauses 1 to 14 of this
Agreement inclusive, then to the extent that the provisions contained in the TLA
are inconsistent with any of the provisions of any of Clauses 1 to 14 of this
Agreement inclusive, the provisions contained in the TLA shall prevail over and
shall supersede the conflicting or inconsistent provisions in Clauses 1 to 14 of
this Agreement inclusive.
	 
	 

	 	English Law
	 	The validity, construction and performance of this Agreement shall be governed by English Law.

IN WITNESS WHEREOF the parties have caused this Agreement to be signed by their duly authorized
representative

	 	 	 	 	 	 	 	 	 	 	 
	ARM LIMITED	 	 	 	CUSTOMER	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BY

	 	/s/Graham Budd
 

	 	 	 	BY
	 	/s/ Robert Krakauer
 

	 	 
	

	 	NAME: Graham Budd
	 	 	 	 
	 	NAME: Robert Krakauer	 	 
	

	 	TITLE: EVP and General Manage
Processors Division
	 	 	 	 	 	TITLE: President	 	 

     

					
	 	 	 	 	 
	NM/CL
	 	10
	 	ARM/Magnachip Semiconductor Ltd.

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