Document:

exv10w1

 

Exhibit 10.1

CONTRACT FOR SALE OF REAL PROPERTY

IMPROVED COMMERCIAL PROPERTY

County of Midland

State of Texas

     THIS CONTRACT OF SALE is between Big Tex Trailer Manufacturing, Inc., a Texas corporation, of
850 1-30 East, Mt. Pleasant, Titus County, Texas (referred to in this Contract as “Seller”) and
Natural Gas Services Group, Inc., a Colorado corporation, of 2911 South County Road 1260, Midland,
Midland County, Texas, (referred to in this Contract as “Buyer”), on the terms set forth in this
Contract.

ARTICLE I

PURCHASE AND SALE

1.01. Seller sells and agrees to convey, and Buyer purchases and agrees to pay for, the tract of
land containing approximately 9.30 acres of land located in Midland County, Texas, being more
particularly described as follows:

BEING 9.30 acres of land in Section 13, Block 41, T-2-S, T & P RR Co. Survey,
Midland County, Texas, being described more fully by metes and bounds as follows:

BEGINNING at a 1/2” iron rod set in the North line of a County Road for the SW comer
of this tract, from which point a I” iron pipe at the S W corner of Section 13,
Block 41, T-2-S, T & P RR Co. Survey, Midland County, Texas, bears S. 58 ° 44’ W.
684.7 feet and S. 15’ 1 T E. 565.1 feet;

THENCE N. 58° 44’ E. with the North line of said County Road, 300.0 feet to a
copperweld rod set in concrete at the SW corner of an 18.6 acre tract for the SE
comer of this tract;

THENCE N. 31’ 16W. with the West line of 18.6 acre tract,1350 feet to a corner of
18.6 acre tract and NE corner of this tract;

THENCE S. 58° 44’ W. with the South line of County Road, 300.00 feet to a 1/2” iron
rod set for the NW corner of this tract;

THENCE S. 310 16’ E. 1350 feet to the PLACE OF BEGINNING, containing 9.30
acres of land, more or less.

This sale and purchase include all rights and appurtenances pertaining to the property, including
any right, title or interest of Seller in adjacent streets, alleys or rights-of-way, together with
any improvements, fixtures, and personal property situated on and attached to the Property, less
and except paint booth heaters, paint guns and pumps and storage treatment tanks, which items have
been or will be removed by the Seller from the Property on or before the date of Closing.

			
	 	 	 
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     The real property described above, and any rights or appurtenances are referred to in this
Contract as the “Property.”

ARTICLE II

SALES PRICE

2.01. The sales price for the Property due at closing is One Million Nine Hundred Thousand and
No/100 Dollars ($1,900,000.00).

ARTICLE III

BUYER’S OBLIGATIONS

Conditions to Buyer’s Obligations

3.01. The Buyer’s obligations under this Contract are subject to the satisfaction of each of the
following conditions (any of which may be waived in whole or in part by Buyer at or before the
closing).

Preliminary Title Report

3.02. Within thirty (30) days after the Effective Date of this Contract, Seller, at Seller’s
expense, will obtain for the Buyer from a title company a preliminary title report (the “Commitment
for Title Insurance”). Buyer will give Seller written notice on or before the expiration of ten
(10) days after Buyer receives the Commitment for Title Insurance that the condition of title as
set forth in the Title Commitment is or is not satisfactory. In the event that Buyer states that
the condition is not satisfactory, Seller may, at Seller’s option, promptly undertake to eliminate
or modify all unacceptable matters to the reasonable satisfaction of Buyer. In the event that
Seller chooses not or is unable to do so within twenty (20) days after receipt of written notice,
this Contract may be terminated, and the Escrow Deposit plus any accrued interest will be returned
by the Escrow Agent to Buyer immediately upon Buyer’s request. Otherwise, this condition will be
deemed acceptable and any objection by the Buyer will be deemed waived.

Surveys and Tests

3.03. Within thirty-five (35) days after the Effective Date of this Contract, Buyer may conduct an
engineering survey and feasibility study of the property including any inspections, environmental
studies, appraisals, and/or other such usual due diligence desired by Buyer. Buyer or Buyer’s
agents may enter on the premises for purposes of soil analysis, core drilling, or other tests, as
required. If, in Buyer’s judgment, the property is not suitable for Buyer’s intended purposes, on
written notice to Seller received before thirty-five (35) days from the Effective Date of this
Contract, Buyer may terminate this Contract. If the Contract is terminated, the Escrow Deposit plus
any accrued interest will be returned by the Escrow Agent to Buyer immediately upon Buyer’s
request. If the written notice is not received within this thirty-five (35) day period, the
condition will be deemed acceptable and any objection will be deemed waived.

			
	 	 	 
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Zoning Acceptability

3.04. Within twenty (20) days after the Effective Date of this Contract, if Buyer, in Buyer’s
opinion, determines that the zoning of the Property is not acceptable, Buyer may terminate this
Contract, on written notice to Seller received before twenty (20) days from the Effective Date of
this Contract. In that event, the Escrow Deposit plus any accrued interest will be returned to
Buyer by the Escrow Agent immediately upon Buyer’s request. If the written notice is not received
within this twenty (20) day period, the condition will be deemed acceptable and any objection by
the Buyer waived.

3.05. Seller will have complied with all of the covenants, agreements, and conditions required by
this Contract by the closing.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLER

     Seller represents and warrants to Buyer, as of the closing date, as follows:

	 	(1)	 	There are no parties in possession of any portion of the Property as lessees,
tenants at sufferance, or trespassers;
	 
	 	(2)	 	Seller possesses free and clear title to all property and improvements
thereupon made;
	 
	 	(3)	 	There is no pending or threatened condemnation or similar proceeding or
assessment affecting the Property, or any part of it, nor to the best knowledge of
Seller is any proceeding or assessment contemplated by any governmental authority;
	 
	 	(4)	 	Seller has complied with all applicable laws, ordinances, regulations, and
restrictions relating to the Property, or any part of it;
	 
	 	(5)	 	There are water, sewer, and electricity lines to the Property and buildings
that are available for tap in by the Buyer and that are sufficient for service on the
Property and buildings;
	 
	 	(6)	 	The Property has free access to and from public highways, streets or roads and,
to the Seller’s best knowledge, there is no pending or threatened governmental
proceeding that would impair or result in the termination of this access;
	 
	 	(7)	 	Within 10 days after the date of this Contract, Seller shall complete and
deliver to Buyer, the Seller’s Disclosure of Property Condition which form is attached
hereto as Exhibit B, and the statements and representations therein shall be true and
correct.

			
	 	 	 
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	 	(8)	 	Seller represents and warrants to Buyer, as to environmental matters as
follows:

	 	(a)	 	No hazardous substances are present or contained on,
in, or under the Property.
	 
	 	(b)	 	Seller does not know and has no reason to know that any
hazardous substance has been used, manufactured, handled, created, stored,
treated, discharged, released, buried, or transported to or from the Property.
	 
	 	(c)	 	At no time during the period that Seller has owned the Property
has Seller allowed any hazardous substance to be present, contained, used,
manufactured, handled, created, stored, treated, discharged, released, or
buried on the Property or transported to or from the Property.
	 
	 	(d)	 	To the knowledge of Seller, the Property is in compliance with
the terms, conditions, and requirements of all applicable federal, state, and
local laws, ordinances, and regulations concerning hazardous substances.
	 
	 	(e)	 	Seller is not aware of any pending or threatened proceedings,
including lawsuits, arbitrations, and administrative hearings, instituted by a
private party or by a governmental entity concerning and hazardous substance
alleged to be or to have been present, contained, used, manufactured, handled,
created, stored, treated, discharged, released, or buried on the Property or
transported to or from the Property.

	 	(9)	 	Notwithstanding the foregoing provisions contained in Paragraph (8) (a), (b)
and (c), Seller has disclosed to Buyer and Buyer is aware that Seller has used the
subject property as a manufacturing facility, which involved use of paint booths to
apply paint to Seller’s products. Above ground storage tanks and two holding ponds have
been removed from the property and the ponds filled in. Seller is not aware of, nor
does Seller believe, any use of the property by Seller has caused any detrimental
environmental impact to the property. Buyer may satisfy itself as to the environmental
status of the property by conducting any of the tests or inspections authorized by
Article III, Paragraph 3.03 of this Contract, or terminate the contract as authorized
in Paragraph 3.03.

ARTICLE V

CLOSING

     The closing will be held at the office of West Texas Abstract & Title, Co., 4519 N. Garfield,
Suite 15, Midland, Texas 79705, on or before November 30, 2007 (closing date) or at the time, date,
and place agreed on by Seller and Buyer. At the closing Seller will:

			
	 	 	 
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	 	(1)	 	Deliver to Buyer a properly executed and acknowledged General Warranty Deed
conveying marketable title in fee simple to all of the Property, free from all liens,
encumbrances, conditions, easements, assessments, and restrictions, except for the
following:

	 	(a)	 	General real estate taxes for the year of closing and
subsequent years not yet due;
	 
	 	(b)	 	Any exceptions approved by Buyer in accordance with Article III
of this Contract; and
	 
	 	(c)	 	Any exceptions approved by Buyer in writing.

	 	(2)	 	Deliver to Buyer a Texas Owner’s Title Policy, at Seller’s expense, issued by
West Texas Abstract & Title, Co., 4519 N. Garfield, Suite 15, Midland, Texas 79705, in
Buyer’s favor in the full amount of the sales price, insuring Buyer’s fee simple title
to the Property subject to the title exceptions listed in Article V of this Contract,
to any other exceptions approved in writing by Buyer, and to the standard printed
exceptions contained in the usual form of Texas Owner’s Title Policy, with the
following exceptions:

	 	(a)	 	The boundary and survey exceptions will be deleted;
	 
	 	(b)	 	The exception as to restrictive covenants will be endorsed
“None of Record”; and
	 
	 	(c)	 	The exception as to the lien for taxes will be limited to the
year of closing and will be endorsed “Not Yet Due and Payable.”

	 	(3)	 	Deliver to Buyer possession of the property.
	 
	 	(4)	 	Bill of Sale for any personal property items.

     Buyer will pay to Seller at closing, in cash, the sum of One Million Nine Hundred Thousand and
No/100 Dollars ($1,900,000.00).

     General real estate taxes for the current year relating to the Property, insurance and utility
charges, if any, will be prorated as of the closing date and will be adjusted in cash at the
closing. If the closing occurs before the tax rate is fixed for the current year, the apportionment
of taxes will be on the basis of the tax rate for the preceding year applied to the latest assessed
valuation. All special taxes or assessments to the closing date will be paid by Seller.

     All costs and expenses of closing in consummating the sale and purchase of the Property will
be paid as follows:

	 	(a)	 	Owner’s Title Policy paid by Seller.

			
	 	 	 
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	 	(b)	 	Mortgagee’s Title Policy, if any, paid by Buyer.
	 
	 	(c)	 	Escrow fees, if any, shall be paid by the Seller.
	 
	 	(d)	 	Survey costs, if any, shall be paid by the Buyer.
	 
	 	(e)	 	Appraisal fees, if any, shall be paid by the Buyer.
	 
	 	(f)	 	All other inspection costs and fees shall be paid by Buyer with
the exception of the Environmental Phase I Study, the cost of which has been
paid by Seller.
	 
	 	(g)	 	Filing fees shall be paid by the party who benefits from the
specific filing of any documents necessary to consummate this transaction.
	 
	 	(h)	 	Attorney’s fees, if any, shall be paid by the party incurring
same.

ARTICLE VI

REAL ESTATE COMMISSIONS

     No brokers have been involved in the negotiation and consummation of this Contract and no
commissions are payable to any persons or entity. Each of the parties represents to the other that
it has not incurred and will not incur any liability for brokerage fees or agent’s commissions in
connection with this Contract.

ARTICLE VII

ESCROW DEPOSIT

     For the purpose of securing the performance of Buyer under the terms of this Contract, Buyer
has or will have delivered to West Texas Abstract & Title, Co., (“Escrow Agent”), the sum of One
Hundred Thousand and No/100 Dollars ($100,000.00), the Escrow Deposit, within three (3) days of the
execution of the Contract. At the closing, the Escrow Deposit will be paid over to Seller and
applied to the cash portion of the sales price. Buyer may direct Title Company to invest the
Earnest Money in an interest-bearing account in a federally insured financial institution by giving
notice to Title Company. Any interest earned on the Earnest Money will be paid to Buyer upon
closing of this transaction or upon return of earnest money to Buyer or upon termination of this
contract.

			
	 	 	 
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ARTICLE VIII

BREACH BY SELLER

     If Seller fails to fully and timely perform any of its obligations under this Contract or
fails to divulge material information related to the property or fails to consummate the sale of
the Property for any reason not authorized by this Contract, Buyer may: (1) enforce specific
performance of this Contract; (2) request that the Escrow Deposit and any earned interest be
immediately returned by the Escrow Agent to Buyer; or (3) bring suit for damages against Seller. If
Seller fails to consummate the sale, and Buyer is not at fault, and Buyer elects to bring suit for
damages, Buyer shall immediately receive the Escrow Deposit plus accrued interest upon demand.

ARTICLE IX

BREACH BY BUYER

     In the event Buyer fails to consummate the purchase of the Property for reasons other than
those reserved by Buyer in this agreement, and if Seller is not in default under this Contract,
Seller will have the right to receive the sum of Thirty Three Thousand and No/100 Dollars
($33,000.00) out of the Escrow Deposit from the Escrow Agent, as liquidated damages for the failure
of Buyer to perform the duties imposed on it by the terms of this Contract. If Seller opts to
receive this sum from the Escrow Deposit, Seller agrees to accept this cash payment as total
damages and as Seller’s only remedy under this Contract in the event of Buyer’s default. The
balance of the Escrow Deposit shall be immediately delivered to Buyer by the Escrow Agent.

ARTICLE X

SPECIAL PROVISIONS

10.01. Seller has informed Buyer that, in accord with an agreement with Chevron USA, Inc., Chevron
will be commencing work to re-route a pipeline over and across the property, the subject of this
contract; said pipeline to be re-routed in the manner appearing on the easement and plat attached
thereto, which easement is attached hereto as Exhibit “A” and incorporated herein by reference as
if fully set forth.

10.02. Seller shall be fully responsible for the expense of re-routing the pipeline.

10.03. Based on the information provided to Seller by Chevron, it is anticipated that the
re-routing of the pipeline should be completed in advance of the November 30, 2007 closing date
established in this Agreement.

ARTICLE XI

MISCELLANEOUS

			
	 	 	 
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Assignment of Contract

11.01. Thus contract may not be assigned without the express written consent of Seller, but consent
to any said assignment shall not be unreasonably withheld.

Survival of Covenants

11.02 Any of the representations, warranties, covenants, and agreements of the parties, as well as
any rights and benefits of the parties, pertaining to a period of time following the closing of the
transactions contemplated by this Contract, will survive the closing.

Notice

11.03 Any notice required or permitted to be delivered under this Contract will be deemed received
when sent by electronic mail (e-mail), facsimile or by United States mail, postage prepaid,
certified mail, return receipt requested, addressed to either Seller or Buyer, as appropriate, at
the addresses and/or e-mail or fax numbers set forth in the signature block of that party appearing
below. A copy of said notices shall also be sent to Seller and Buyer’s attorneys, if any, reflected
below.

Texas Law to Apply

11.04 This contract will be construed in accordance with the laws of the State of Texas, and all
obligations of the parties created under this Contract are performable in Midland County, Texas.

Parties Bound

11.05 This contract will be binding on and inure to the benefit of the parties and their respective
heirs, executors, administrators, legal representatives, successors and assigns, as permitted by
this Contract.

Legal Construction

11.06 In case anyone or more of the provisions contained in this contract for any reason is held
invalid, this invalidity will not affect any other provision of this Contract, which will be
construed as if the invalid or unenforceable provision had never existed.

Prior Contracts Superseded

11.07 This contract constitutes the only agreement of the parties and supersedes any prior
understandings or written or oral agreements between the parties respecting the subject matter of
this Contract.

Compliance

11.08 In accordance with the requirements of Section 20 of the Texas Real Estate License Act, Buyer
is advised that it should be furnished with or obtain a policy of title insurance or Buyer

			
	 	 	 
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should
have the abstract covering the Property examined by an attorney of Buyer’s own choosing.

Time Limit

11.09 In the event a fully executed copy of this Contract has not been returned to Seller by Buyer
within ten (10) business days of the date of Seller’s signature to this Contract as indicated
below, Seller will have the right to terminate this contract on written notice to Buyer. The
effective date of this Contract shall be the date the Contract is signed by the Buyer as indicated
below.

Like-Kind Exchange

11.10 Each party consents to the other party’s assignment of it’s rights and obligations under this
Agreement to its Qualified Intermediary (as that term is defined in Section 1.103 (k)-I(g)(4)(v) of
the Treasury Regulations), or to its Qualified Exchange Accommodation Titleholder (as that term is
defined in Rev. Proc. 2000-37), in connection with effectuation of a like-kind exchange. However,
Seller and Buyer acknowledge and agree that any assignment of this Agreement to a Qualified
Intermediary or to a Qualified Exchange Accommodation Titleholder does not release either party
from any of their respective liabilities and obligations to each other under the Agreement. Each
party agrees to cooperate with the other to attempt to structure the transaction as a like-kind
exchange, provided that such agreement to cooperate shall not delay the closing scheduled for
November 30, 2007.

SELLER

BIG TEX TRAILER MANUFACTURING, INC.

850 I-30 East

Mt, Pleasant, Texas 75455

(903) 575-0300 — telephone

(903) 577-8858 — facsimile

	 	 	 	 	 	 	 
	By:

	 	/s/ Ricky Baker
	 	 	 	Date: October 24, 2007
	 

	 	 	 	 	 	 
	 

	 	Ricky Baker	 	 	 	 
	 

	 	President	 	 	 	 
	 

	 	rickyb@bigtextrailers.com	 	 	 	 

			
	 	 	 
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BUYER

NATURAL GAS SERVICES GROUP, INC.

2911 S. County Road 1260

Midland, Texas 79706

(432) 563-0245 — telephone

(432) 563-5567 — facsimile

	 	 	 	 	 	 	 
	By:

	 	/s/ Stephen Taylor
	 	 	 	Date: November 3, 2007
	 

	 	 	 	 	 	 
	 

	 	Stephen Taylor	 	 	 	 
	 

	 	President and CEO	 	 	 	 
	 

	 	sct@ngsgi.com	 	 	 	 

ATTORNEY FOR SELLER:

Danny Woodson

Law Offices of Danny Woodson

P.O. Box 399

Mt. Pleasant, Texas 75456-0399

(903) 572-6675 -telephone

(903) 572-7348 — facsimile

dwoodsonlodw@sbcglobal.net

brandilodw@sbcglobal.net

			
	 	 	 
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EXHIBIT A

     Exhibit A attached to the preceding Contract is a Pipeline Right-of-Way Grant, which includes
a plat and centerline description for a re-route of a gas pipeline.

 

 

EXHIBIT B

     Exhibit B attached to the preceding Contract is the Seller’s Disclosure of Property Condition
for the Property.exv10w33

 

Exhibit 10.33

SEPARATION AGREEMENT AND RELEASE

     This Separation Agreement and Release (together with its attachments, the “Agreement”) is made
and entered into as of June 15, 2007, by and between Transmeta Corporation, a Delaware corporation
(together with its subsidiaries, successors and assigns, the “Company”), and David R. Ditzel (the
“Executive”).

     WHEREAS, the Executive has been employed by the Company since its founding and has held a
series of management positions, most recently as the Company’s Chief Technology Officer (“CTO”)
until that position was eliminated effective March 31, 2007, pursuant to a workforce reduction
announced February 2, 2007;

     WHEREAS, the Executive and the Company have terminated the Executive’s employment relationship
with the Company, effective May 31, 2007;

     WHEREAS, the Company believes that it is in the best interest of its shareholders to enter
into a comprehensive separation agreement and release with the Executive;

     WHEREAS, the Executive and the Company (the “Parties”) desire to settle fully and finally any
and all differences between them, and so have negotiated and agreed to a final settlement of their
respective rights, obligations and liabilities;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Executive and the Company hereby agree as follows:

     1. The Parties agree that Executive’s employment relationship with the Company terminated as
of May 31, 2007 (the “Separation Date”). The Parties acknowledge that the Executive’s position as
Chief Technology Officer of the Company was eliminated as of March 31, 2007, and that the Executive
resigned that office and each other office and position in the Company or any of its subsidiaries,
with the sole exception of his position as a member of the Company’s Board of Directors, as of
March 31, 2007. The Executive hereby retires from and resigns his position as a member of the
Company’s Board of Directors effective as of the date of this Agreement.

     2. Severance Payment. The Company shall make to the Executive a final lump sum severance
payment of $210,000 according to the following schedule: (a) the first installment of $105,000
shall be paid on or before June 30, 2007; (b) the second installment of $55,000 shall be paid on or
before December 31, 2007; and (c) the third and final installment of $50,000 shall be paid on or
before June 30, 2008. The Executive acknowledges that this sum represents a gross amount before
all applicable federal, state and local withholding taxes that are required to be deducted by the
Company.

     3. Health Benefits. Pursuant to the provisions of COBRA, the Company will continue to pay
for the Executive’s present election of group health benefits for the

Page 1 of 8

 

Executive and his dependents until he finds employment providing comparable health benefits,
or through and including September 30, 2007, whichever comes first.

     4. Reimbursements. The Company shall promptly reimburse the Executive for any reasonable
business expenses properly incurred by the Executive through May 31, 2007 and duly submitted by the
Executive for reimbursement. By or before the Effective Date, the Company will pay to Executive
all expense reimbursements, accrued vacation, outstanding benefits, salary and any similar
payments, if any, owed by the Company to Executive as of the separation date of May 31, 2007.

     5. Stock Options. With respect to the stock options granted to the Executive by the Company,
the Parties acknowledge and agree to the following:

     a. The Parties acknowledge and agree that the Company has granted to the Executive certain
options to purchase the Company’s common stock as follows: (1) a March 1999 grant to purchase up
to 500,000 shares of the Company’s common stock at an exercise price of $0.65 per share; (2) a July
2001 grant to purchase up to 250,000 shares of the Company’s common stock at an exercise price of
$3.11 per share; (3) an April 2002 grant to purchase up to 240,000 shares of the Company’s common
stock at an exercise price of $2.46 per share; (4) a November 2002 grant to purchase up to 130,000
shares of the Company’s common stock at an exercise price of $1.05 per share; (5) a May 2003 grant
to purchase up to 100,000 shares of the Company’s common stock at an exercise price of $1.57 per
share; (6) a May 2004 grant to purchase up to 100,000 shares of the Company’s common stock at an
exercise price of $2.15 per share; (7) a May 2005 grant to purchase up to 433,000 shares of the
Company’s common stock at an exercise price of $0.75 per share; and (8) a June 2006 grant to
purchase up to 250,000 shares of the Company’s common stock at an exercise price of $1.48 per share
(collectively, the “Stock Options”). The Parties acknowledge and agree that each of the Stock
Options is governed by the terms of their respective grant agreements.

     b. The Executive acknowledges and agrees that the Company has not issued to him any option to
purchase common stock of the Company other than the stock options described above in subsection 5.a
of this Agreement, and that he has no other right, title or interest in or to any option or right
to acquire common stock of the Company.

     6. Mutual Releases.

     a. Release by the Company. In consideration of the Executive entering into this Agreement,
to the fullest extent permitted by law, the Company, on behalf of itself and its subsidiaries,
successors and assigns (collectively, the “Releasing Company Parties”), knowingly and voluntarily
releases and discharges the Executive, and each of the Executive’s heirs, family members,
executors, administrators and attorneys, and any successor or assign of any of the foregoing
(collectively, the “Released Executive Parties”), from any claim, charge, action or cause of action
that any of the Releasing Company Parties may have against any of the Released Executive Parties,
whether known or unknown, from the beginning of time through the date of this Agreement based

Page 2 of 8

 

upon any act, fact, omission, matter, cause or thing whatsoever, whether or not related to or
arising out of the Executive’s employment with the Company or the termination thereof.
Notwithstanding the foregoing, this release shall not extend to or discharge (i) the Company’s
right to enforce the terms and conditions of this Agreement, or (ii) any rights or claims that
might arise after the date of this Agreement, or (iii) the Company’s right to enforce the terms and
conditions of the Proprietary Information Agreement, or (iv) the Company’s right to enforce the
terms and conditions of the Indemnity Agreement, its Certificate of Incorporation or its Bylaws, or
(v) the Company’s right to collect any applicable federal, state or local withholding taxes that
are required to be deducted by the Company for any reason, all of which rights and claims shall be
preserved, or (vi) the Company’s right to enforce the terms and conditions of each agreement and
plan governing the issuance of each stock option referenced in Section 5.a, as well as the stock
issued upon exercise of that stock option. The Company represents and warrants that it currently
knows of no basis for any claims by it against any Released Executive Party, and that neither the
Company nor anyone acting on its behalf has filed any claim, action, suit, complaint or proceeding
against any Released Executive Party in any agency, court or other forum or tribunal.

     b. Release by the Executive. In consideration of the Company entering into this Agreement,
to the fullest extent permitted by law, the Executive, on behalf of himself and his heirs,
executors, administrators, successors and assigns (collectively, the Releasing Executive Parties”),
knowingly and voluntarily releases and discharges the Company and its subsidiaries and affiliates,
the respective current and former officers, employees, attorneys, agents and directors of the
Company and its subsidiaries and affiliates, and any successor or assign of any of the foregoing
(collectively, the “Released Company Parties”), from any claim, charge, action or cause of action
that any of the Releasing Executive Parties may have against any of the Released Company Parties,
whether known or unknown, from the beginning of time through the date of this Agreement based upon
any act, fact, omission, matter, cause or thing whatsoever, whether or not related to or arising
out of the Executive’s employment with the Company or the termination thereof. Notwithstanding the
foregoing, this release shall not extend to or discharge any claims that Executive may not release
as a matter of law, including but not limited to any rights to or claims for indemnification or
contribution, including associated expenses and attorneys fees and the advancement of either of the
foregoing, that Executive currently has or may in the future have under any of the following: the
Certificate of Incorporation or By-Laws of the Company, under any applicable insurance policy,
under that certain Indemnity Agreement effective as of September 13, 2000 between Executive and the
Company (the “Indemnity Agreement”), or under any other provision or principle of law, or
otherwise. In addition, this release shall not extend to or discharge (i) the Executive’s right to
enforce the terms and conditions of this Agreement, or (ii) any rights or claims that might arise
after the date of this Agreement, or (iii) the Executive’s right to enforce the terms and
conditions of the Indemnity Agreement or the Company’s Certificate of Incorporation or its Bylaws,
all of which rights and claims shall be preserved, or (iv) the Executive’s right to enforce the
terms and conditions of each agreement and plan governing the issuance of each stock option
referenced in Section 5.a, as well as the stock issued upon exercise of that stock option. Nothing
in this Section 6.b shall prohibit

Page 3 of 8

 

Executive from filing a charge or complaint with a government agency such as but not limited
to the Equal Employment Opportunity Commission, the National Labor Relations Board, the Department
of Labor, the California Department of Fair Employment and Housing, or other applicable agency.
The Executive represents and warrants that he currently knows of no basis for any claims by him
against any Released Company Party, and that neither he nor anyone acting on his behalf has filed
any claim, action, suit, complaint or proceeding against any Released Company Party in any agency,
court or other forum or tribunal.

     c. The releases and discharges provided in subsections 6.a and 6.b above include, but are not
limited to, any rights or claims under United States federal, state or local law for wrongful or
abusive discharge, or for discrimination based upon race, color, ethnicity, sex, age, national
origin, religion, disability, sexual orientation, including rights or claims under the Age
Discrimination in Employment Act of 1967 (“ADEA”). The Executive and the Company each expressly
waives any right or benefit that otherwise would be available to them, respectively, pursuant to
section 1542 of the Civil Code of the State of California, which statute provides as follows: “A
general release does not extend to claims which the creditor does not know or suspect to exist in
his or her favor at the time of executing the release, which if known by him or her must have
materially affected his or her settlement with the debtor.”

     d. It is understood and agreed that this Agreement represents a compromise settlement of a
disputed claim or claims, and that neither this Agreement itself nor the furnishing of the
consideration for this Agreement shall be deemed or construed as an admission of liability or
wrongdoing of any kind by the Company.

     e. The Executive affirms that that he has been advised by the Company to consult with an
attorney of his choice concerning the terms and conditions set forth herein; that he has availed
himself of that right; that he has been given at least twenty-one (21) days within which to
consider this release and its consequences; that he has seven (7) days after signing this Agreement
to revoke and cancel this Agreement by written notice to the Company; that this Agreement shall not
become effective or enforceable until the eighth day following its execution (the “Effective
Date”); and that Executive, if he chooses to sign this Agreement, should do so no earlier than May
31, 2007.

     7. Cooperation. For the period of one year following the date of this Agreement, the
Executive hereby agrees to assist the Company, upon reasonable request by the Company, and subject
to reasonable accommodation of the Executive’s personal and business schedule, in connection with
any pending or future dispute, litigation, arbitration or similar proceeding or investigation
(“Dispute”) or any regulatory request or filing involving the Company, any of its directors, or any
of the directors of any of its subsidiaries, provided that such Dispute or regulatory request or
filing related to a matter of which he had knowledge or for which he was responsible prior to the
date of this Agreement, and that such request for assistance is neither unduly burdensome nor
unreasonable. The Company shall promptly reimburse the Executive for, or promptly advance to the
Executive, all costs and expenses reasonably incurred by the Executive in connection with rendering
assistance to the Company in connection with any such

Page 4 of 8

 

Dispute or regulatory request or filing, including without limitation reasonable fees and
disbursements of separate counsel for the Executive if the Executive reasonably determines that the
matter is of a nature which indicates that he should have separate representation. Such expenses
shall be reimbursed or advanced promptly after the Executive’s submission to the Company of
statements in such reasonable detail as the Company may require. Time devoted by the Executive to
assisting the Company pursuant to this Section 7 shall not be required to exceed 20 hours in any
month.

     8. Publicity and Non-Disparagement.

     a. Unless and until the Company publicly discloses this Agreement, the Executive shall
neither discuss any aspect of the terms of this Agreement with, nor disclose all or any portion of
this Agreement to, any person or organization. Notwithstanding anything elsewhere to the contrary,
the Executive may in any event discuss this Agreement with, and disclose all or any portion of this
Agreement to, his spouse and his legal, tax and financial advisors.

     b. The Executive agrees that he shall not intentionally make any public statement to third
parties, the public, the press or the media, or any administrative agency that is intended to
disparage the Company or to cause injury to the Company or any of its officers, directors, or
employees. The Company agrees that it shall use its reasonable best efforts to cause its officers
and directors not knowingly to make any public statement to third parties, the public, the press or
the media, or any administrative agency intending to disparage the Executive.

     c. Notwithstanding the foregoing, nothing in this Section 8 shall prevent any person from
responding publicly to incorrect, disparaging or derogatory public statements to the extent
reasonably necessary to correct or refute such public statements, provided, in the case of the
Executive, that, prior to making any such responses or statements, he has informed the Company of
their substance and tenor reasonably in advance and discussed his intended course of action with
it. Further, nothing in this Section 8 shall prohibit the Executive from providing truthful
information in response to a proper subpoena or other legal process.

     9. Confidentiality and Protection of Proprietary Information.

     a. The Executive hereby reaffirms his obligations pursuant to that certain Agreement
Regarding Proprietary Information and Inventions, dated October 2, 1995, between the Executive and
the Company (the “Proprietary Information Agreement”), to which agreement the Executive
acknowledges that he is bound; provided, however, that the provisions of Section 10 of this
Agreement (“Non-Solicitation”) shall supersede the provisions of paragraph 10.b of the Proprietary
Information Agreement.

     b. The Executive hereby agrees and covenants that he shall use his best efforts to return or
cause to be returned to the General Counsel of the Company any and all property of the Company of
any kind or description whatsoever which on the Effective

Page 5 of 8

 

Date is in his possession or under his control (including, but not limited to, any Proprietary
Information, as defined in the Proprietary Information Agreement, in written or other tangible
form) and shall not retain any copies, duplicates, reproductions or excerpts thereof that are
knowingly in his possession, except as otherwise provided hereunder. The Company and Executive
agree that the Executive shall not be required to extensively search through the materials he
accumulated over his tenure with the Company to determine whether any such materials constitute
Proprietary Information of the Company. The Executive represents and warrants to the Company that
he will continue to cooperate in returning to the Company all of the Company’s property or data of
any type whatsoever that he determines to be in his possession, including but not limited to any
planning data, personnel data, historical or projected financial data, compensation data, computer
software and any and all documents in hardcopy or electronic format, that has been in the
Executive’s possession or control as a result of his employment with the Company. Anything to the
contrary notwithstanding, nothing in this Section 9 shall prevent the Executive from retaining (i)
papers and other materials of a personal nature, including personal diaries and Rolodexes,
information showing his compensation or relating to reimbursement of expenses, information that he
reasonably believes may be needed for tax purposes, and copies of plans, programs and agreements
relating to his employment with the Company, or (ii) copies of papers or information that the
Executive reasonably determines would be appropriate for him to retain in his capacity as a
consultant to the Company and subject to the Proprietary Information Agreement.

     c. For the one-year period that commenced on May 31, 2007, the Executive shall not manage,
operate, control or materially participate in the management, operation or control of any other
company in any position or role that would reasonably be expected to put him in material breach of
his obligations to the Company pursuant to the Proprietary Information Agreement. The Executive
warrants and represents that, as of the Effective Date, he is in compliance with this Section 9.c.

     d. Notwithstanding the foregoing, the provisions of this Section 9 shall not apply (i) to any
disclosure or use of Proprietary Information in connection with providing services or assistance
pursuant to Section 7, (ii) to any disclosure that may be required by law or by any court,
arbitrator, or administrative or legislative body with apparent jurisdiction to order the Executive
to disclose or provide any such Proprietary Information, (iii) to any disclosure of Proprietary
Information reasonably required to enforce the terms of this Agreement, or (iv) to any Proprietary
Information that becomes generally known to the public other than as a result of any violation of
this Agreement by the Executive.

     10. Non-Solicitation. For the one-year period that commenced on May 31, 2007, the Executive
shall not, directly or indirectly, without the prior written consent of the Company, knowingly
solicit, induce, or attempt to induce, either for himself or on behalf of any company or business
organization in which he serves as an officer, employee, partner, director, or consultant, any
employee or consultant of the Company to terminate his, her or its employment or consulting
relationship with the Company, whether for

Page 6 of 8

 

employment or to consult with a third party or otherwise. Anything to the contrary
notwithstanding, the Company agrees that this Section 10 does not prohibit the Executive from (i)
responding in any manner to an unsolicited request from any present or former employee of the
Company for advice or information on employment matters, or (ii) responding to an unsolicited
request for an employment reference for any present or former employee of the Company, by providing
a reference setting out his personal views about such present or former employee.

     11. Indemnification. Notwithstanding anything in this Agreement to the contrary, the Company
and Executive agree that the Indemnity Agreement, and the parties’ respective obligations
thereunder, shall remain in full force and effect.

     12. Notice. Any notice, request, or other communication given in connection with this
Agreement shall be in writing and shall be deemed to have been given (i) when delivered personally
to the recipient or (ii) provided that a written acknowledgement of receipt is obtained, three days
after being sent by prepaid certified or registered mail, or two days after being sent by a
nationally recognized overnight courier, to the address specified below for the recipient (or to
such other address as the recipient shall have specified by ten days’ advance written notice given
in accordance with this Section 12). Such communication should be addressed to the Executive at
his principal residence and to the Company at its corporate headquarters to the attention of the
General Counsel.

     13. Entire Agreement. Except as expressly set forth herein, this Agreement contains the
entire agreement between the parties concerning the subject matter hereof and supersedes all prior
agreements, understandings, discussions, negotiations, and undertakings, whether written or oral,
between the parties with respect thereto. This Agreement may be modified only by a written
document signed by the Executive and a duly authorized officer of the Company. Any waiver by any
person of any provision of this Agreement shall be effective only if in writing and signed by the
person against whom enforcement of the waiver is sought. For any waiver or modification to be
effective, it must specifically refer to this Agreement and to the terms or provisions being
modified or waived. No waiver of any provision of this Agreement shall be effective as to any
other provision of this Agreement except to the extent specifically provided in an effective
written waiver.

     14. Severability. In the event that any provision or portion of this Agreement shall be
determined to be invalid or unenforceable for any reason, the remaining provisions or portions of
this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law. Specifically, should a court, arbitrator or agency conclude that a
particular claim may not be released as a matter of law, it is the intention of the Parties that
the general release and the waiver of unknown claims herein shall otherwise remain effective to
release any and all other claims.

     15. Governing Law. This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the State of California.

Page 7 of 8

 

     16. Headings. The headings of the Sections contained in this Agreement are for convenience
only and shall not be deemed to control or affect the meaning or construction of any provision of
this Agreement.

     17. Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original but all of which together shall constitute one and the same
instrument. Signatures delivered by facsimile shall be effective for all purposes.

     IN WITNESS WHEREOF, the Parties have executed this Agreement.

PLEASE READ CAREFULLY. THIS SEPARATION AGREEMENT AND RELEASE INCLUDES A RELEASE OF ALL KNOWN AND
UNKNOWN CLAIMS.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	THE EXECUTIVE: David R. Ditzel	 	 
	 
	 	 	 	 	Executed this 15th day of June, 2007.	 	 
	 	 	 
	 	 	 	 	 	 
	 	 	 	 	           /S/ DAVID R. DITZEL	 	 
	 	 	 	 	 	 	 
	 	 	 	 	                David R. Ditzel	 	 
	 	 	 
	 	 	 	 	 	 
	 	 	 	 	THE COMPANY: Transmeta Corporation	 	 
	 
	 	 	 	 	Executed this 15th day of June, 2007.	 	 
	 
	 	 	 	 	Transmeta Corporation	 	 
	 	 	 
	 	 	 	 	 	 
	 	 	 

	 	By:
	 	/S/ JOHN O’HARA HORSLEY
	 	 
	 	 	 

	 	 	 	 	 	 
	 	 	 

	 	 	 	John O’Hara Horsley	 	 
	 	 	 

	 	 	 	Executive Vice President,	 	 
	 	 	 

	 	 	 	General Counsel & Secretary	 	 
	 	 	 
	 	 	 	 	 	 
	 	 	Address:	 	2540 Mission College Blvd.	 	 
	 	 	 	 	Santa Clara, California 95054	 	 
	 	 	 	 	Telephone: 408-919-3000	 	 

Page 8 of 8

 

CONSULTING AGREEMENT

     This Consulting Agreement (the “Agreement”) is entered into as of June 15, 2007, by and
between David R. Ditzel (“Ditzel” or the “Consultant”) and Transmeta Corporation, a Delaware
corporation (“Transmeta” or the “Company”) (each a “Party” and, collectively, the “Parties”).

RECITALS 

     WHEREAS, Ditzel has substantial professional experience and knowledge relating to technology
licensing and the development of business opportunities involving the licensing of Transmeta’s
computing and low power semiconductor technologies, and has served as the Chief Technology Officer
of the Company from March 2001 through March 2007; and

     WHEREAS, the Company now desires to engage the services of Ditzel as a consultant, and Ditzel
is willing to render, and to hold himself available to render, consulting services to the Company
upon the terms and conditions herein set forth.

AGREEMENT 

     NOW, THEREFORE, in consideration of the mutual promises set forth herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties
agree as follows:

     1. Services. For the term of this Agreement, Ditzel shall serve as a consultant to the
Company, and shall be available to perform, and shall perform, for the Company consulting services
relating to technology licensing and the development of business opportunities involving the
licensing of Transmeta’s computing and low power semiconductor technologies as reasonably requested
by the Company’s President and Chief Executive Officer (the “Services”). Ditzel shall personally
perform all of the Services provided for in this Agreement.

     2. Compensation. In consideration for Ditzel’s performance of Services pursuant to this
Agreement, the Company shall pay Ditzel a consulting fee of $1600 per day. Ditzel shall maintain
and submit to the Company periodic statements for Services rendered. The Company will pay such
statements on a monthly basis. In addition, all stock options that were previously granted to
Ditzel as a Transmeta employee (the “Stock Options”) will cease vesting but remain exercisable
through and until the Termination Date of this Agreement (as defined below in Paragraph 4) and
subject to the terms of Ditzel’s original stock option grant agreements, including provisions
allowing exercise of the Stock Options, to the extent vested and exercisable, within three months
after the Termination Date. The Company acknowledges that the compensation for Services provided
for in this Paragraph 2 shall be in addition to the Severance Payment to which Ditzel is entitled
pursuant to that certain Separation and Release Agreement between the Parties dated June 15, 2007
(the “Separation Agreement”).

Page 1 of 2

 

     3. Expenses. The Company shall reimburse Consultant for his reasonable expenses in accordance
with the Company’s policies. Consultant shall keep and submit to the Company records of such
expenses.

     4. Term and Termination. This Agreement shall terminate as of June 30, 2008 unless extended
or earlier terminated by the Parties (the “Termination Date”). Either Party may terminate this
Agreement at any time for any reason with 30 days notice, and, upon such termination, neither Party
shall have any obligations hereunder to the other except for payment for Services previously
rendered or expenses previously incurred.

     5. Relationship of the Parties. Ditzel’s consulting relationship to the Company will be that
of an independent contractor. Nothing in this Agreement is intended or shall be construed to
constitute Ditzel as, and Ditzel acknowledges that he is not, an employee of the Company. Ditzel
acknowledges that his performance of Services pursuant to this Agreement will not entitle him to
receive any vacation payments, or to participate in any of the Company’s employee benefits plans,
arrangements, stock options or distributions relating to any bonus, insurance or similar benefits
provided for the Company’s employees.

     6. Indemnification. If Ditzel is made a party to, or is threatened to be made a party to, or
is involved in any action, suit or proceeding, whether civil, criminal, administrative or
investigative, by reason of the fact that he provided Services pursuant to this Agreement, then
Ditzel shall be indemnified and held harmless by the Company, to the fullest extent permitted by
applicable law, against all expenses, liability and loss (including attorneys’ fees, judgments,
fines, excise taxes and penalties and amounts paid or to be paid in settlement) reasonably incurred
or suffered by Ditzel in connection therewith; provided, that Ditzel shall not be so indemnified or
held harmless in any action, suit or proceeding brought by the Company against Ditzel or, with
respect to a criminal action or proceeding, if Ditzel had reasonable cause to believe that his
conduct in question was unlawful.

     7. Governing Law. This Agreement shall be construed in accordance with the laws of the State
of California, without giving effect to the principles of conflict of laws.

	 	 	 
	CONSULTANT

	 	TRANSMETA CORPORATION
	 
	 	 
	/S/ DAVID R. DITZEL

	 	/S/ LESTER M. CRUDELE
	 

	 	 
	David R. Ditzel

	 	By Lester M. Crudele
	 

	 	President and Chief Executive Officer

Page 2 of 2

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