Document:

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                                                                   EXHIBIT 10.10

TESSERA/INTEL CONFIDENTIAL

                                 TESSERA, INC.

                       LIMITED TCC(TM) LICENSE AGREEMENT

       This Agreement is entered into as of this 22nd day of October, 1996
("Effective Date"), between TESSERA, INC., a corporation organized under the
laws of Delaware, having a principal place of business at 3099 Orchard Drive,
San Jose, CA 95134 ("Tessera") and INTEL CORPORATION, 2200 MISSION COLLEGE
BLVD., SANTA CLARA, CA, ("LICENSEE") and its Affiliates and Subsidiaries with
reference to the following facts:

                                     Scope:

       WHEREAS, Tessera owns certain semiconductor integrated circuit ("IC")
packaging technology it calls TCC technology along with related IC tape mounting
technology, where said technologies include manufacturing processes, package
device designs and specifications, including design rules and certain other
proprietary information and technology required to manufacture TCC packages or
related IC packages, collectively (the "Technology") (each of the foregoing
capitalized terms is more particularly described herein); and

       WHEREAS, Licensee wishes to use the Technology including Tessera's
intellectual property rights to manufacture and assemble said TCC and Related IC
Packages that contain IC chips made by or for Licensee and to sell same in
accordance with the terms hereof.

       The Parties Hereto Agree:

       I.     DEFINITIONS:

       As used herein, the following terms shall have the following meaning:

       A. The term "TCC" is an acronym for Tessera Compliant Chip, a type of
integrated circuit ("IC") package made under certain issued Tessera Patents
licensed hereunder. Generally, a TCC package has substantially coplanar bump or
solder ball contacts disposed in a grid array pattern and comprises a thin
compliant multi-layer structure for connection to an IC die, with permanent
flexible electrical connections between at least one of said contacts and a
corresponding bond pad on said IC die.

       B. The term "Technology" means Tessera Patents, copyrights, and know-how
relating to design, manufacture, and assembly of TCC packages (excluding Batch
Technology as defined herein) owned by Tessera as of the Effective Date.
Technology shall also include TCC derivatives modifications, or improvements
thereof made by Tessera during the term of this Agreement (excluding Batch
Technology as defined herein).

       C. The term "Technical Information" means Tessera information relating to
Technology and know-how which may be proprietary and/or confidential in nature
and which may include, without limitation, material specifications, current best
method of manufacture and assembly, plating processes, tooling specifications,
design methods, techniques, proprietary

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TESSERA/INTEL CONFIDENTIAL

software, process data, yields, reliability data, and other Tessera engineering
data and test results needed by Licensee (the foregoing by mutual agreement) to
exercise the rights, licenses and privileges of the licenses granted hereunder.

       D. The term "Patent" means letters patents, utility models, allowances
and applications therefor in all countries of the world, including re-issues,
re-examinations, continuations, divisions, and all corresponding foreign
patents.

       E. The term "Tessera Patent" means Patent(s) (i) which had or have a
first effective filing date in any country prior to expiration or termination of
this Agreement, and (ii) which arise out of inventions based on the Technology
made and/or acquired by Tessera based on the Technology prior to expiration or
termination of this Agreement. The term Tessera Patent shall further include any
patent under which Tessera or any successor thereof has the right to grant
licenses of the scope granted herein, as of the Effective Date or at any time
during the term of this Agreement, without the payment of royalty or other
consideration to third parties except for payment to third parties for
inventions made by said parties while employed by Tessera or any successor
thereof, including US patents and US patent applications set forth in Attachment
A attached.

       F. The term "Batch Technology" as used herein means Technology including:
(i) any method or result of U.S. Patent Number 5,518,964 (and related Patents)
for bonding or connecting one or more substantially planar electrically
conducting flexible elements to electrical contact(s) on a substantially planar
electrical element such as a semiconductor integrated circuit, undiced IC wafer,
or interconnect substrate, and then forming said element(s) away from the plane
of said contacts in a predetermined fashion into the flexible electrical lead(s)
of a TCC package; (ii) any method or result of U.S. Patent 5,455,390 (and
related Patents) for making and forming one or more flexible conducting elements
and simultaneously joining said elements to electrical contacts on a
substantially planar electrical element such as a semiconductor integrated
circuit, undiced IC wafer or interconnect substrate to produce the flexible
electrical leads of a TCC package; and/or (iii) any method or result of further
invention or Patent made or acquired by Tessera during the term hereof covering
any batch processing method for forming or producing and/or connecting flexible
electrical leads of a TCC package. Notwithstanding, the parties expressly agree
that any TCC package made and/or connected individually on an IC wafer before
dicing by traditional wire bonding methods and/or tape automated bonding ("TAB")
gang bonding methods, is NOT included in Batch Technology.

       G. The term "IC Contacts" means any electrical connection to an IC bond
pad contained in any TCC package licensed hereunder.

       H. The term "Licensee's Improvements" means TCC design modifications,
derivatives, improvements, improved manufacturability/cost (to the TCC package)
or changes to materials that were conceived of after March 23, 1995 and may be
made by Licensee arising out of Technology or Technical Information and
incorporated in a TCC package by Licensee for sale or other transfer to a third
party during the term of this Agreement or extension hereof. The parties
understand that any packages made or designed by Licensee that are not TCC
packages are not within the category of "Licensee Improvements".

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TESSERA/INTEL CONFIDENTIAL

       I. "Standards" means those minimum standards set by Tessera for quality,
reliability, materials, external device properties and/or measurements pursuant
to which Licensee may sell any TCC package or related IC package under a Tessera
trademark.

       J. The term "Affiliate" means any company of which fifty percent (50%) or
more of the voting stock is owned or controlled by Licensee. A company shall be
considered an Affiliate only so long as such majority ownership or control
exists.

       II.    LICENSEE RIGHTS:

       A. TCC Assembly License Grant. Subject to the terms and conditions
hereinafter set forth, Licensee's agreement to the provisions hereof including
all attachments hereto, and Licensee's payment of the fees and royalties stated
herein in Paragraph III, Tessera hereby grants Licensee a non-exclusive,
non-transferable, non-sub-licensable limited license to use the Technology and
Technical Information to make, have made, use, sell, offer to sell, and import
the ICs that Licensee owns, regardless of the manufacturer of the ICs, and to
incorporate the same into TCC and related IC packages and sell same world wide
under Licensee's commercial indicia. Licensee's rights hereunder do not include
the right to provide IC packaging services on a consignment basis or for any ICs
that Licensee does not own.

       B. Batch Technology Excluded. Notwithstanding anything herein to the
contrary, Batch Technology is excluded from the scope of this Agreement, and
Licensee's rights herein expressly exclude any right to package and/or assemble,
or sell any TCC or related IC package made using Batch Technology.
Notwithstanding, Tessera and Licensee agree to enter into good faith
negotiations on a separate agreement to define the parties relationship with
respect to Batch Technology.

       C. Additional Rights. Licensee shall have an option to participate in
up-coming rounds of financing upon the opening of such rounds. Licensee shall
also have the option to fund certain development activities and to engage in
joint engineering developments with Tessera, as mutually agreed by the parties.

       III.   FEE AND ROYALTY:

       A. Royalty Reduction Fee. In consideration for the substantially reduced
royalties contained herein, Licensee shall pay to Tessera the sum of [*] US
DOLLARS, (US$[*]) within forty-five (45) days of the Effective Date of this
Agreement.

       B. Royalty. In addition to the Royalty Reduction Fees, Licensee shall pay
a royalty for the license granted in Paragraph II.A., as shown below, in US
currency. Initial Royalty payments due Tessera hereunder are payable on each TCC
package according to the number of IC Contacts on the operational IC device
which is packaged, as shown under the "Initial Royalty" schedule below. After
Licensee has paid an Initial Royalty for an aggregate of [*] ([*]) IC devices
packaged by Licensee under this Agreement, the royalty payments due Tessera
hereunder on each TCC package according to the number of IC Contacts on the
operational IC device which

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

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is packaged shall be adjusted as shown under the "Volume Adjusted Royalty"
schedule shown below:

<TABLE>
<CAPTION>
 Number of IC Contacts         Initial Royalty         Volume Adjusted Royalties
<S>                            <C>                     <C>
     [*]                          $[*]                        $[*]

     [*]                          $[*]                        $[*]

     [*]                          $[*]                        $[*]

     [*]                          $[*]                        $[*]
</TABLE>

The parties hereto agree the royalties scheduled above are substantially reduced
to provide increased incentive for Licensee's early adoption and proliferation
of the Technology. Moreover, to provide additional incentive for Licensee's
early adoption and proliferation of the Technology solely in TCC packages having
[*] ([*]) or less IC Contacts ("Low Contact Count Devices") that Licensee makes
for itself (excluding such similar packages Licensee may purchase from Tessera's
other licensees who pay the royalty under their independent license to Tessera
directly), Licensee's obligation to pay royalties for such Low Contact Count
Devices shall be reduced to $[*] per such TCC package after Licensee has paid
the royalties in the schedule above for [*] ([*]) such Low Contact Count
Devices, and said royalties solely for such Low Contact Count Devices shall
terminate ten (10) years from the Effective Date arid become fully paid up and
perpetual at that time.

Nothing in this Paragraph III.B. shall provide for the early termination of
Licensee's payment of royalties for TCC packages having IC Contacts in excess of
[*] ([*]). All other royalties for Licensee's packaging its other IC devices
into TCC packages shall be as shown in the royalty schedule above and for the
duration of this Agreement and any extension thereof, as set forth in Paragraph
X.

       C. Method of Payment. The royalties may be paid by Licensee to Tessera on
a running royalty basis paid twice annually during the term of this Agreement or
on a pre-paid basis for a given quantity of TCC packages based on the IC Contact
royalty described above. The payment of such a prepaid royalty is subject to
mutual agreement between the parties hereto as to the amount of royalties to be
pre-paid. If an agreement cannot be reached for a pre-paid royalty, running
royalties shall be paid. When a pre-paid royalty is exhausted for the agreed
upon quantity of TCC packages based on the IC Contact royalty, Licensee shall
begin paying the running royalty, unless the parties mutually agree to a further
pre-paid royalty.

       D. Adjustments for CPI Changes. Licensee's royalty payments shall be
further adjusted by multiplying amounts due under Paragraph C. above by a factor
based on changes in the US Consumer Price Index ("CPI"). Said factor is deemed
to be equal to one (1.0) for the first three (3) years of the term of this
Agreement. During said term or any extension hereof, said factor shall be
recalculated every three years by dividing the CPI in effect on each third
anniversary by the actual CPI in effect on the Effective Date of this Agreement.
However, any change in the CPI pursuant to this provision shall not cause an
adjustment of more than 2.5% per annum of the royalties for TCC packages
manufactured hereunder. Licensee will have a reasonable opportunity to review
each adjustment prior to the adjustment going into effect.

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

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       E. Most Favored Customer. Tessera warrants that the royalty terms of
Paragraph III.B. are no less favorable than the royalty terms granted to any
other commercial semiconductor manufacturer who is a Tessera licensee for
packaging IC devices it owns as TCC packages. In the event that Tessera grants
another such similar licensee a license which has more favorable royalty terms
than those granted in this Agreement within Paragraph III.B., then Tessera shall
promptly notify and offer Licensee the royalty terms of such other license,
where any such comparison and potential subsequent adjustment of royalty terms
shall take into consideration all of the elements and/or terms of the royalty
provision(s) in both agreements. The following shall not be deemed agreements
subject to this Paragraph: (i) agreements between Tessera and its Affiliates;
(ii) cross-license or other agreements with commercial semiconductor
manufacturers under which a substantial portion of the consideration received by
Tessera consists of rights to patents and/or technology owned by the other party
to such agreement and such rights to patents and/or technology is necessary for
Tessera to manufacture and sell a TCC package; (iii) agreements with
governmental or educational agencies; or (iv) agreements in settlement of
litigation brought by commercial semiconductor manufacturers against Tessera for
infringement of patents where such patents are necessary for Tessera to
manufacture and sell a TCC package.

       IV.    INTENTIONALLY LEFT BLANK.

       V.     LICENSEE REPORTS AND PAYMENT:

       A Royalties shall be calculated beginning on the Effective Date of this
Agreement and shall be payable in full in semi-annual payments. Beginning with
the first payment period, Licensee shall deliver a written report describing the
basis upon which royalties have been calculated and the total royalty due
Tessera for the applicable payment period to Tessera within forty-five (45) days
after the end of each payment period. All payments under this Paragraph shall be
made in US Dollars by wire transfer to Silicon Valley Bank, 3003 Tasman Drive,
Santa Clara, CA 95054, Account No. 0350527875, Transit No. 121140399, or such
other bank or account as Tessera may from time to time designate in writing.
Payments shall be considered to be made as of the day on which they are received
in Tessera's designated bank or account.

       B. Licensee will submit with each payment, set forth in Paragraph V.A.
above, an accounting of (1) the total quantity of TCC packages manufactured by
or for Licensee during a particular payment period; and (2) the total quantity
of TCC packages manufactured by Licensee.

       VI.    TECHNOLOGY TRANSFER:

       A. In addition to granting of the aforesaid licenses under the Technology
and upon Effective Date of this Agreement and the payment of the Documentation
and Royalty Reduction Fee described in Paragraphs III.A. and III.B. above,
Tessera will transfer to Licensee the standard documentation for the
Technology, including certain TCC package specifications, Standards and
Technical Information for the standard TCC packages licensed herein, including
those items that are identified in Attachment B to this Agreement.

       B. Tessera and Licensee will meet on a mutually agreed upon schedule, to
review technical improvements of Tessera and Licensee. In addition, Tessera will
make available on at

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least a semi-annual basis, Tessera derivatives, modifications or improvements
which have been reduced to practice including changes and modifications in
Standards, methods, and materials during the term of this Agreement through
Tessera's regularly published Technical Briefing Bulletin or substantially
equivalent method. Notwithstanding the foregoing, Tessera is under no obligation
to transfer and/or license any information whether confidential, proprietary or
otherwise that it may be prohibited from transferring to Licensee by contract
with a third party or applicable law. Notwithstanding any provision to the
contrary, Tessera shall not be under any obligation to transfer or disclose
actual patent applications or related documents to Licensee hereunder until such
application has been allowed by the relevant patent authority.

       C. Engineering support from Tessera to Licensee may be made available,
according to a mutually agreeable time schedule and manpower assignment
schedule, at a per diem rate of US $[*] per support engineer, plus reasonable
air travel and hotel charges. Licensee agrees to pay all reasonable coach class
air travel and hotel charges incurred by Tessera personnel in connection with
engineering support performed at any of Licensee's facilities outside of San
Jose. Additional engineering interactions, whether carried out at Tessera's
facilities or Licensee's facilities, conducted to collaborate on technical
issues of mutual concern, shall be supported by each party at its own expense.
Notwithstanding, on a mutually agreed date following the Effective Date and at
each party's own expense, Tessera shall accept up to ten (10) Licensee engineers
at Tessera's facilities for a period of ten (10) consecutive business days for
purposes of teaching Licensee's engineers the Technology and providing
Licensee's engineers with Technical Information to design and make TCC packages.

       VII.   IMPROVEMENTS GRANTBACK:

       A. Subject to the terms and conditions of this Agreement, Licensee hereby
grants to Tessera a fully-paid, non-exclusive, non-transferable,
non-sub-licensable, right to use Licensee's Improvements to make, have made,
use, sell, offer to sell and import the ICs that Tessera owns, regardless of the
manufacturer of the ICs, and to incorporate the same into TCC and related IC
packages world wide. Such license to Tessera under this Paragraph shall remain
in effect during the term of this Agreement and any extension thereof. If
Licensee receives a paid up license right at the termination of this Agreement,
under paragraph X.B. below, Tessera shall have a fully paid up and perpetual
license on the terms set forth herein to use Licensee Improvements to the same
extent as Tessera had been licensed to use Licensee Improvements immediately
prior to such expiration.

       B. Licensee will make available licenses to Licensee's Improvements to
other licensees of Tessera subject to good faith negotiations, reasonable terms
and conditions, and the granting to Licensee of reciprocal licenses from such
other Tessera licensees.

       C. Any improvement that is made through the joint efforts of Tessera and
Licensee shall be deemed a "Joint Improvement" hereunder and shall be the joint
property of both Tessera and Licensee, and both Tessera and Licensee shall have
a fully-paid, non-assessable, transferable, perpetual, sub-licensable right and
license to use such Joint Improvements, but such right and license shall not
include any right of license by implication with respect to any part of the
Technology. The party desiring to file the Joint Improvement as a patent
application shall first

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

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notify the other party of the existence of a Joint Improvement. No party shall
file a patent application on a Joint Improvement without first notifying the
other and receiving an acknowledgment from the other party. The parties hereto
agree that such acknowledgment shall not be unreasonably withheld. If an
acknowledgment is not received within thirty (30) days of the notification, the
acknowledgment shall be deemed to have been given and received. The parties
shall further reasonably consult with one another with respect to applying for
and maintaining jointly owned patents with respect to such Joint Improvements at
shared expense. The parties hereto shall execute such documents and render such
assistance as may be appropriate to enable the party properly having title to
such Improvements to maintain or obtain patents for the same.

       D. Licensee agrees to provide written reports on Licensee's Improvements
annually to Tessera on or about the anniversary of the Effective Date, and will
provide technical updates on Licensee Improvements during mutually agreed
scheduled technical exchange meetings. Notwithstanding, Licensee is not required
to disclose to Tessera Licensee Improvements directed toward improving
electrical performance of Licensee's products. Further, Licensee is not
obligated to provide any patent information to Tessera except in the case that a
patent application falling within the definition of Licensee's Improvements has
been allowed by a relevant governmental patent authority.

       VIII.  TRADEMARKS:

       A. Trademarks. Licensee acknowledges Tessera's claim of ownership of
Tessera's trademarks including, but not limited to, TESSERA, TESSERA BLOCK
LOGO, TCMT, TCC, COMPLIANT CHIP and uBGA (hereinafter "Marks"), and agrees that
it will use reasonable efforts to do nothing inconsistent with such Tessera
ownership. Licensee agrees that nothing in this Agreement shall give Licensee
any right, title or interest in the Marks.

       IX.    SUPPLIER:

       Licensee, at its sole option, may enter into agreements ("Subcontract")
with suppliers ("Supplier") to manufacture TCCs or related packages, materials
or services thereof which are licensed hereunder for Licensee only and not for
Supplier's use or sale to anyone other than Licensee, provided that: (a) prior
to any disclosure of Tessera confidential information, Licensee and Supplier
shall execute a Non-Disclosure Agreement having substantially similar terms as
Paragraph XIV.A. herein (Non-Disclosure); (b) Licensee shall ensure that
Supplier receives no property rights to the Technology transferred under
Subcontract and that the rights to any improvements to the Technology made by
Supplier shall be Licensee Improvements as set forth in this Agreement; and (c)
Licensee shall indemnify and hold harmless Tessera and its successors and
assigns against any breach or any damages, costs, or expenses arising from or
related to any breach by Licensee or Supplier of the foregoing obligations.

       X.     TERM AND TERMINATION:

       A. Term. This Agreement shall become effective on Effective Date and,
unless earlier terminated as provided for elsewhere in this Agreement, shall
remain in full force until it automatically expires on the [*] ([*]) anniversary
of the Effective Date provided that:

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

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              1. On or before six months prior to the expiration date hereof,
Licensee must elect one of the following options and notify Tessera in writing
of its election, for the period beginning upon the expiration of this Agreement:

                     a. Licensee may elect to extend the term of this Agreement
for five years, which includes (i) continuing, for the said five year period,
the payment of full royalties hereunder, and (ii) continuing during such five
year period, all of the obligations, privileges, rights and licenses granted to
the parties hereunder including issued Tessera Patents (filed as applications
prior to the expiration of this Agreement on such [*] ([*]th) anniversary) and
Licensee's right to receive from Tessera the Technical Information relating to
improvements to be made by Tessera up to the expiration of such five year
period; or

                     b. If Licensee wishes to use further any applicable issued
Tessera patent granted prior to the expiration of this Agreement, Licensee may
elect to enter into a patent license agreement with Tessera for any such issued
Tessera patents and shall pay one-half (1/2) of the royalties listed in
Paragraph III.B. hereunder for the lesser of five (5) additional years or the
life of the last expiring Tessera patent so licensed by Licensee without the
option to receive continuing Technical Information relating to improvements to
be made by Tessera up to the expiration of such five year period; or

                     c. Licensee may elect to permit the Agreement to expire in
accordance with its terms (including termination of any payments of royalties
to Tessera and termination of any rights of Licensee to use further any Tessera
Patent licensed hereunder).

       B. Paid-up license. Upon expiration of any extension hereof under option
(a) above or expiration of any one-half royalty patent license under (b) above,
Licensee shall have a fully paid-up and perpetual license on the terms set forth
herein to use Technology to the same extent as Licensee has been licensed to use
Technology immediately prior to such expiration. Said paid-up license shall be
as follows:

              1. In the event that Licensee elects option (a.) above, such
license shall be for applicable Tessera Patent granted for twenty (20) years
from the Effective Date; or

              2. In the event that Licensee elects option (b) above, such
license shall be for applicable Tessera Patent granted for fifteen (15) years
from the effective date,

       C. Termination for Breach. Either party may terminate this Agreement due
to the other party's breach of this Agreement, such as failure to perform its
duties, obligations, or responsibilities herein (including, without limitation,
failure to pay royalties and provide reports as set forth herein). The
non-breaching party may terminate this Agreement if such breach is not cured
within sixty (60) days of notice thereof

       D. Termination for Assignment. In the event that (i) a party either sells
or assigns substantially all of its assets or business to a third party or (ii)
a third party acquires more than fifty percent (50%) of the capital stock
entitled to vote for directors of such party ("Selling Party"), the

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

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Selling Party shall notify the other party of such sale or assignment of assets
or the third party's acquisition. In any case of sale, assignment or
acquisition, the Selling Party shall provide to the other party a written
confirmation from such third party stating that such third party shall expressly
undertake all the terms and conditions of this Agreement to be performed by
Selling Party. In the event that such assignee/transferee does not fulfill
obligations under this Agreement, the other party shall reserve a right to
terminate this Agreement.

       E. Termination for Bankruptcy. In the event that one party becomes
bankrupt, permanently ceases doing business, makes an assignment for the benefit
of its creditors, commits an act of bankruptcy, commences any bankruptcy
proceedings or other proceedings in the nature of bankruptcy proceedings, or has
commenced against it any bankruptcy proceedings or other proceedings in the
nature of bankruptcy proceedings that are not dismissed within sixty (60) days,
then the other party shall have the right to terminate this Agreement
immediately upon its notice. Upon such termination the non-bankrupt party shall
have an option to terminate the obligations of both the parties to transfer or
license Technology, Technical Information, Tessera Patent, or Licensee's
Improvement that is filed after the date of termination for bankruptcy, with the
parties retaining all rights to use any Technical Information and Technology and
Licensee Improvements transferred prior to such termination, to the extent
licensed hereunder, just prior to such termination for bankruptcy, all such
rights remaining in full force and good standing, subject to continuation of the
royalty payments as stipulated in Paragraph III hereof

       F. Any termination of this Agreement pursuant to this paragraph X, except
as provided in Subparagraph B above, shall be deemed a termination of this
Agreement in accordance with its terms (including termination of any payments of
royalties to Tessera, and further termination of any rights of Licensee to use
any Technology or Tessera Patent licensed hereunder or Tessera to use any
Licensee Improvement).

       G. Survival Clause. Unless otherwise provided elsewhere in this
Agreement, the following provisions shall survive the termination or expiration
of this Agreement:

              1. Licensee's obligation to make payment to Tessera accrued under
this Agreement on or prior to expiration or termination.

              2. Licensee's obligation to submit written report stipulated in
Paragraph V, Licensee Reports and Payment, and to permit the inspection and
audit of its account record stipulated in Paragraph XI, Reasonable Audit.

              3. The rights and licenses of Tessera to use all improvements that
may be granted during the term of this Agreement and any extension hereof.

              4. Obligation of both parties stipulated in Paragraph XIV,
Non-Disclosure.

              5. Paragraph X, Term and Termination.

              6. Paragraph XII, No Warranties.

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              7.     Paragraph XIII, Limitation on Damages.

              8.     Paragraph XV, Indemnity.

              9.     Paragraph XVI, Miscellaneous.

       XI.    REASONABLE AUDIT:

       A. Royalty Audit. Upon reasonable written prior notice, Tessera shall
have the right to examine and audit, through an independent third party CPA
firm, at its expense and not more frequently than once per year, all records of
Licensee that may contain information bearing upon the amount of fees payable
under this Agreement; provided, however, that the said auditor shall have agreed
in advance in writing to maintain in confidence and not to disclose to Tessera
or any third party any proprietary information obtained during the course of
such audit. Within forty-five (45) days after receiving the auditor's report,
Licensee shall make payment to Tessera of any amount which the parties agree to
be payable.

       B. Breach Audit. If Licensee has a reasonable belief of unfair treatment
by Tessera or any successor thereof that Tessera is either not complying with
the Most Favored Customer provision, as set forth in Paragraph III.E., or is
transferring substantial Technical Information to other Tessera licensees (for
the same Technology rights licensed to both Licensee and such other Tessera
licensees) which Tessera is not or has not transferred or otherwise made
available to Licensee, Licensee shall consult with Tessera and discuss such
possible unbalanced sharing of Technical Information or possible non-compliance
with the Most Favored Customer provision. After such discussion, if Licensee is
unsatisfied that it has received all materially important Technical Information
or has not received royalty rates consistent with the Most Favored Customer
provision, Licensee shall have a right to an audit performed no more than once
every two (2) years to determine whether such unbalanced transfer of Technical
Information or such violation of the Most Favored Customer provision is
occurring. The audit shall be conducted by a third party independent auditor
mutually agreed upon by the parties prior to the audit. In the event that the
third party auditor determines that Licensee has not (1) received the material
Technical Information transferred to a similarly situated other licensee of
Tessera (taking into account variations in the Technical Information due to
licensee requested data formats, mixtures of Tessera and other licensee
confidential information, time or test changed data, etc.) or (2) received
royalty rates consistent with the Most Favored Customer provision, the auditor
shall issue an opinion of what material information is in need of transfer to
Licensee or what royalty adjustments are to be made. Licensee shall then have
the right to demand and receive the transfer of such untransferred Technical
Information within the auditor's report or adjustment to the royalty rate.
Compliance and dispute resolution issues under this Paragraph XI.B. shall be
determined as set forth in Paragraph XVI.B.

       XII.   NO WARRANTIES:

       Licensee and Tessera acknowledges and agrees that the rights and
licenses, Technology and Specifications granted or otherwise provided hereunder
are provided to Licensee and Tessera "AS IS", with no warranty of any kind.
TESSERA AND LICENSEE MAKE NO WARRANTY,

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EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, CONCERNING THE SUBJECT MATTER OF THIS
AGREEMENT, INCLUDING WITHOUT LIMITATION, WARRANTIES OF FITNESS FOR A PARTICULAR
PURPOSE, QUALITY, USEFULNESS OR NONINFRINGEMENT. Tessera and Licensee make no
warranty that the Technology or Standards will be sufficient or yield any
particular result.

       XIII.  LIMITATION ON DAMAGES:

IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY OTHER PERSON
OR ENTITY (UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY) FOR
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATED TO THE
SUBJECT MATTER OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES OR LOSSES.

       XIV.   NON-DISCLOSURE:

       A. The parties agree that all confidential information disclosed either
orally or, in writing by one party to the other pursuant to this Agreement
shall, for a period of eight (8) years from the date of first receipt of this
information, not be used except in accordance with the rights and licenses
granted pursuant to this Agreement and shall be maintained in confidence by the
receiving party, provided, however, that such information is designated and
marked as being confidential in nature by the disclosing party at the time of
disclosure to the receiving party and provided further that such information, if
disclosed orally, is reduced to writing, marked as being confidential, and
delivered to the receiving party within thirty (30) days after such disclosure.
Such Confidential Information may be disclosed only to employees of the
receiving party who have a specific need to know such information for the
purpose of the disclosing party. Notwithstanding the foregoing provisions of
this Paragraph:

                     1. The receiving party's obligation with respect to keeping
information confidential shall terminate with respect to any part of such
information which appears in issued patents or printed publications or which
ceases to be confidential or enters the public domain through no fault of the
receiving party;

                     2. The receiving party shall not be precluded from
disclosing or making any use whatsoever of any information which it can show was
in its possession prior to the disclosure made by the furnishing party or which
subsequently lawfully came into the receiving party's possession through
channels independent of the furnishing party or which was developed by the
receiving party completely independent of information provided to receiving
party hereunder;

                     3. For the purpose of keeping information confidential the
receiving party shall use efforts commensurate with those which it employs for
the protection of corresponding information of its own, but not less than a
reasonable degree of care to prevent unauthorized use, disclosure,
dissemination, or publication of information transferred hereunder;

                                       11
<PAGE>   12

TESSERA/INTEL CONFIDENTIAL

                     4. The receiving party shall not be liable for any
disclosure resulting from the sale of any product or component; and

                     5. The receiving party may disclose confidential
information of the party to the receiving party's Suppliers or vendors where
necessary for the manufacture, use or sale of products by the receiving party,
as provided for in Paragraph IX (Supplier).

       B. The parties hereto shall consult with each other to mutually approve
promotional materials, including samples or technical data, containing any
proprietary and/or confidential information of the parties, for disclosure to
customers by either party or jointly under a mutually agreeable and reciprocal
non-disclosure agreement. Neither Tessera nor Licensee shall use the other
parties' name, trademarks, logos or other information in any publications,
promotional or marketing or sales materials without prior written permission by
the other party. Notwithstanding the parties' obligations hereunder with respect
to timely reports and/or disclosures to the other containing confidential
information, breach of this Paragraph XIV by either party shall be deemed
sufficient cause for the other party to terminate any further obligation to make
confidential disclosures to the breaching party without limiting any other
remedy at law. If such a breach occurs, the non-breaching party shall send a
written notification to the breaching party. The breaching party will then have
fifteen (15) days from the mailing date of the notification within which to
mitigate the effects of the wrongful disclosure amounting to a breach hereunder.
If such actions are sufficient to mitigate the effects of the wrongful
disclosure, the obligation of the Non-breaching party to make confidential
disclosures shall resume.

       C. The terms and conditions within this Non-Disclosure section shall
supersede all prior non-disclosure agreements between Tessera and Licensee.

       XV.    INDEMNITY:

       A. Licensee agrees to defend, indemnify and hold Tessera harmless from
and against any and all damages, liabilities, costs and expenses (including
reasonable attorney's fees and expenses) finally awarded by a court of competent
jurisdiction arising out of or related to Licensee's use of Technology or
Technical Information.

       B. Tessera agrees to defend, indemnify and hold Licensee harmless from
and against any and all damages, liabilities, costs and expenses (including
reasonable attorney's fees and expenses) finally awarded by a court of competent
jurisdiction arising out of or related to Tessera's use of Licensee
Improvements.

       XVI.   MISCELLANEOUS:

       The following additional terms shall apply to this Agreement:

       A Governing Low. This Agreement shall be governed interpreted and
construed in accordance with the laws of the State of California as if without
regard to its provisions with respect to conflicts of Laws. Both parties shall
use their best efforts to resolve by mutual agreement any disputes,
controversies, claims or difference which may arise from, under, out of or

                                       12
<PAGE>   13

TESSERA/INTEL CONFIDENTIAL

in connection with this Agreement. All disputes arising directly under the
express terms of this Agreement or the grounds for termination thereof shall be
resolved as follows: The senior management of both parties shall meet to attempt
to resolve such disputes. If the disputes cannot be resolved by the senior
management, either party may make a written demand for formal dispute resolution
and specify the scope of the dispute. Within thirty (30) days after such written
notification, the parties agree to meet for one day with an impartial mediator
and consider dispute resolution alternatives. If such disputes, controversies,
claims or differences cannot be settled between the parties, any litigation
between the parties relating to this Agreement shall take place in San Jose,
California. The parties hereby consent to personal jurisdiction and venue in the
state and federal courts of California.

       B. Arbitration. The parties have agreed to arbitrate disputes arising
between the parties solely under Article XI. (Reasonable Audit.). Specifically,
if the parties disagree on the results of an audit and if the disagreement
cannot be resolved by the senior management after ninety (90) days from the date
any Party made a written demand for resolution, a binding arbitration shall be
held. Subject to the terms of this arbitration provision, the rules of the
arbitration shall be agreed upon by the Parties prior to the arbitration and
based upon the nature of the disagreement. To the extent that the Parties cannot
agree on the rules of the arbitration, then the Commercial Arbitration Rules of
the American Arbitration Association ("AAA") in effect on the Effective Date of
this Agreement, and except as the applicable rules are modified by this
Agreement, shall apply. The proceedings shall be held in the County of Santa
Clara, California, U.S.A. under the auspices of the AAA. As a minimum set of
rules in the arbitration the Parties agree as follows:

              (1) The arbitration shall be held by, single arbitrator mutually
acceptable to both Parties. If the Parties cannot agree on a single arbitrator
within thirty (30) days from the date written demand is made, each Party shall
identify one independent individual who shall meet to appoint a single
arbitrator. If an arbitrator still cannot be agreed upon within an additional
thirty (30) days, one shall be appointed by the AAA. The arbitrator shall be
knowledgeable regarding the semiconductor industry.

              (2) Neither Party shall sue the other where the basis of the suit
is within the scope of this Section except for enforcement of the arbitrator's
decision in the event that the other Party is not performing in accordance with
the arbitrator's decision.

              (3) Any arbitration proceeding hereunder shall be conducted on a
confidential basis.

              (4) The arbitrator shall apply the substantive laws of the State
of California in interpreting and resolving disputes.

              (5) The Parties shall agree upon what, if any, discovery shall be
permitted. If the Parties cannot agree on the form of discovery within fourteen
(14) days after the appointment of the arbitrator, then there shall be neither
discovery nor the issuance of subpoenas. In no event, however, shall any such
discovery take more than three months.

              (6) The duty of the Parties to arbitrate any dispute within the
scope of this Arbitration provision shall survive the expiration or termination
of this Agreement for any reason. The Parties specifically agree that any action
must be brought, if at all, within two (2) years from the accrual of the cause
of action.

                                       13
<PAGE>   14

TESSERA/INTEL CONFIDENTIAL

              (7) The discretion of the arbitrator to fashion remedies hereunder
shall be no broader than the legal and equitable remedies available to a court,
unless the parties expressly state elsewhere in this Agreement that the
arbitrator use broader or narrower legal and equitable remedies than would be
available to the arbitrator in this Arbitration provision. This Arbitration
provision and those other sections of the Agreement shall be read together. This
Arbitration provision shall govern if any conflict arises between this
Arbitration provision and any other remedy terms in this Agreement.

              (8) The discretion of the arbitrator to fashion remedies shall be
limited as stated in this Arbitration provision and specifically this paragraph
(8) and shall exclude any right to award a remedy based on implied rights under
the Agreement. The remedies shall include: the payment of money owed as
determined by the arbitrator without additional punitive amounts added, but
including interest if awarded by the arbitrator; the disclosure of Technical
Information determined by the arbitrator to be subject to disclosure under the
terms of the Agreement and the adjustment to the royalty rate needed to be
consistent with the Most Favored Customer provision. If determined by the
arbitrator that such Technical Information should have been disclosed hereunder,
the arbitrator may further provide a reduction of royalties for the period of
time from the issuance of the arbitrator's decision until Tessera or its
successor has complied with the transfer of the untransferred Technical
Information, for which the arbitrator shall be the sole judge.

       C No Waiver. No failure or delay on either party in the exercise of any
right or privilege hereunder shall operate as waiver thereof, nor shall any
single or partial exercise of such right or privilege preclude other or further
exercise thereof or any other right or privilege.

       D. Notices. All notices, required documentation, and correspondence in
connection herewith shall be in the English language, shall be provided in
writing and shall be given by facsimile transmission or by registered or
certified letter to Tessera and Licensee at the addresses and facsimile numbers
set forth below:

             Tessera:                   Tessera, Inc.
                                        3099 Orchard Dr.
                                        San Jose, California 95134
                                        Facsimile No.: 408-894-0768
                                        Attn.: Chief Executive Officer

             Licensee:                  Intel Corporation
                                        2200 Mission College Blvd.
                                        SC4-203
                                        Santa Clara, CA 95052
                                        Facsimile 408-765-1621
                                        Attn.: General Counsel

Either Party may change its address and/or facsimile number by giving the other
party notice of such new address and/or facsimile number. All notices if given
or made by registered certified letter shall be deemed to have been received on
the earlier of the date actually received and the date three days after the same
was posted and if given or made by facsimile transmission shall

                                       14
<PAGE>   15

TESSERA/INTEL CONFIDENTIAL

be deemed to have been received at the time of dispatch, unless such date of
deemed receipt is not a business day, in which case the date of deemed receipt
shall be the next succeeding business day.

       E. Documentation Managers. Both Licensee and Tessera shall designate a
Documentation Manager to perform the task of logging and tracking the
confidential documents transferred between the companies. If possible, each
transfer of confidential information should be first transferred between the
respective Documentation Managers before disclosure in a meeting or via
mail/fax. If the information is first disclosed between representatives of the
parties, an effort should be made to send a copy of the disclosed information to
the receiving party's Documentation Manager along with the date of the
disclosure. Tessera's Documentation Manager is Christopher M. Pickett, In-house
Patent Counsel and may be contacted at the Tessera fax and street address.
Licensee's Documentation Manager is Licensee's Document Control Center, Memory
Components Division, c/o Kristine Carlson and may be contacted at Intel
Corporation, M/S FM2-61, 1900 Prairie City Road, Folsom, CA 95630-9598.

       F. Entire Understanding. This Agreement embodies the entire understanding
between the parties relating to the subject matter hereof, whether written or
oral, and there are no prior representations, warranties or agreements between
the parties not contained in this Agreement. Any amendment or modification of
any provision of this Agreement must be in writing, dated and signed by both
parties hereto.

       G. Invalidity. If any provision of this Agreement is declared invalid or
unenforceable by a court having competent jurisdiction, it is mutually agreed
that this Agreement shall endure except for the part declared invalid or
unenforceable by order of such court. The parties shall consult and use their
best efforts to agree upon a valid and enforceable provision which shall be a
reasonable substitute for such invalid or unenforceable provision in light of
the intent of this Agreement.

       H. Assignment. Neither party may assign this Agreement or any of its
rights or obligations hereunder without the prior written consent of the other
party.

       I. Export Regulations. Both parties shall comply with the laws and
regulations of the government of the United States, and of any other country as
applicable relating to the export of commodities and technical data, any direct
product of such data, or any product received the other, to any proscribed
country listed in such laws and regulations unless properly authorized by the
appropriate government, and not knowingly export, or allow the export or
re-export of any Technology or Proprietary Information, or any system,
component, item, material or package made under or using the foregoing, in
violation of any restrictions, laws or regulations, or without all required
licenses and authorizations, to Afghanistan, the People's Republic of China or
any Group Q, S, W, Y or Z country specified in the then current Supplement No. 1
to Section 770 of the US Export Administration Regulations (or any successor
supplement or regulations).

       J. Section Headings. The headings and captions used herein shall not be
used to interpret or construe this Agreement.

                                       15
<PAGE>   16

TESSERA/INTEL CONFIDENTIAL

       K. Agreement Confidentiality. Tessera and Licensee agree that the terms
of this Agreement are confidential and shall not be disclosed to third parties
without the prior consent of the other party.

       IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

TESSERA, INC.:            LEGAL OK      INTEL CORPORATION

/s/ JOHN W. SMITH                       /s/ GERALD H. PARKER
-------------------------               ----------------------------------------
Signature                               Signature

    John W. Smith                           Gerald H. Parker
-------------------------               ----------------------------------------
Name                                    Name

  10-22-96                                10-23-96
-------------------------               ----------------------------------------
Date                                    Date

  President/CEO                           Executive Vice President
-------------------------               ----------------------------------------
Title                                   Title

                                       16<PAGE>   1
TESSERA CONFIDENTIAL                                               EXHIBIT 10.11

                                 TESSERA, INC.
                            TCC(R) LICENSE AGREEMENT

     This Agreement is entered into as of this 1st day of April 1999 ("Effective
Date"), between TESSERA INC., a corporation organized under the laws of
Delaware, having a principal place of business at 3099 Orchard Drive, San Jose
CA 95134 and the Tessera Affiliates ("Tessera") and Toshiba Corporation, a
corporation organized under the laws of Japan having a principal place of
business at 1-1, Shibaura 1-Chome, Minato-ku, Tokyo 105-8001, Japan and the
Licensee Affiliates ("Licensee") with reference to the following facts:

                                     Scope:

     WHEREAS, Tessera owns certain patents and patent applications relating to
semiconductor integrated circuit ("IC") packaging for single point bonded TCCs;
and

     WHEREAS, Licensee desires to obtain a non-exclusive license under
Tessera's said certain patents and patent applications.

     NOW THEREFORE, in consideration of the promises and covenants hereinafter
set forth the parties hereto agree as follows:

     I.   DEFINITIONS

     As used herein, the following terms shall have the following meaning:

     A.   The term "TCC" is an acronym for Tessera Compliant Chip, a type of
integrated circuit ("IC") package which is the subject matter of certain
Tessera Patents licensed hereunder. By way of non-limiting example, such TCCs
may include IC packages that are in a fan-in arrangement (where external
electrical terminals overlie a surface of an IC device) or are in a fan-out
arrangement (where external electrical terminals are arranged beyond the
periphery of an IC device) or are in a fan-in/fan-out arrangement (where
external electrical terminals both overlie a surface of an IC device and extend
beyond the periphery of the IC device). In such examples, the contact bearing
surface of the IC device may face either towards or away from the external
electrical terminals.

     B.   The term "(mu)BGA(R)" is a type of TCC where the package terminals
are disposed in or over a compliant structure attached to the face, contact
bearing surface of the IC and the term "F-(mu)BGA(TM)" refers to a type of TCC
where the package terminals are disposed in or over a compliant structure
attached to the back, non-contact bearing surface of the IC.

     C.   The term "Patent" means letters, patents, utility models, allowances
and applications therefor in all countries of the world, including re-issues,
re-examinations, continuations, continuations-in-part, divisionals, and all
corresponding foreign patents.

     D.   The term "Tessera Patent" means Patent(s) or claims within such
Patent(s) for the design, manufacture, and/or assembly of TCCs (excluding Batch
Technology as defined herein)

                                  Page 1 of 20
<PAGE>   2
TESSERA CONFIDENTIAL

owned by Tessera prior to expiration or termination of this Agreement. The term
Tessera Patent shall further include any third party patent for the design,
manufacture, and/or assembly of TCCs (excluding Batch Technology as defined
herein) under which Tessera or any successor thereof has the right to grant
licenses of the scope granted herein, as of the Effective Date or at any time
during the term of this Agreement, without the payment of royalty or other
consideration to such third parties except for payment to third parties for
inventions made by said parties while employed by Tessera or any successor
thereof. As of the Effective Date of this Agreement, Tessera Patents, as
defined above, consist of those issued Patents set forth in Attachment A. Prior
to expiration or termination of this Agreement, Attachment A shall be amended
from time to time to include further issued Patents directly related to the
scope of the license grant in Paragraph II. Tessera has sole discretion in the
prosecution of the Tessera patent applications prospectively licensed
hereunder, non-exclusively including filing continuations,
continuations-in-part, divisionals, filing corresponding foreign patents
applications and/or abandoning one or more of such patent applications.

     E.   The term "Batch Technology" as used herein means Patents relating to
or including: (i) any method or result of U.S. Patent Number 5,518,964 (and
related Patents) for making flexible electrically conducting element(s),
joining said elements to electrical contact(s) on a substantially planar
electrical element such as a semiconductor integrated circuit, undiced IC
wafer, or interconnect substrate, and forming said element(s) away from the
plane of said contacts in a predetermined fashion into the flexible electrical
lead(s) of a TCC; (ii) any method or result of U.S. Patent 5,455,390 (and
related Patents) for making and forming flexible conducting element(s) on a
dielectric film and then simultaneously joining said elements to electrical
contacts on a substantially planar electrical element such as a semiconductor
integrated circuit, undiced IC wafer or interconnect substrate to produce the
flexible electrical leads of a TCC; and/or (iii) any method or result of
further invention or Patent made or acquired by Tessera during the term hereof
covering any processing method for simultaneously forming, producing and/or
connecting a plurality of flexible electrical leads of a TCC. Notwithstanding,
the parties expressly agree that any TCC made and/or connected individually on
a semiconductor integrated circuit or undiced wafer by traditional wire bonding
methods and/or tape automated bonding ("TAB") gang bonding methods, is NOT
included in Batch Technology.

     F.   The term "Billable Pin" means any electrical connection to an IC bond
pad made or contained in any TCC license hereunder.

     G.   The term "Licensee Improvements" means derivatives, improvements,
modifications, or enhanced specifications relating to a TCC, or related
materials, that may infringe a Tessera Patent or may be made or incorporated in
a TCC by or for Licensee.

     H.   The term "Standards" means those minimum standards as set forth in
Attachment C pursuant to which Licensee may sell any TCC under a Mark (as
defined in Paragraph VIII).

     I.   The term "Licensee Affiliate" means any company which agrees to  be
bond by the terms and conditions of this Agreement and has more than fifty
percent (50%) of the voting stock owned or controlled directly or indirectly by
Licensee. A company shall be considered a Licensee Affiliate only so long as
such majority ownership or control exists. Licensee shall be ultimately
responsible for the actions of the Licensee Affiliates pursuant to this
Agreement.

                                  Page 2 of 20
<PAGE>   3
TESSERA CONFIDENTIAL

     J.   The term "Tessera Affiliate" means any company which agrees to be
bound by the terms and conditions of this Agreement and has more than fifty
percent (50%) of the voting stock owned or controlled directly or indirectly by
Tessera. A company shall be considered a Tessera Affiliate only so long as such
majority ownership or control exists. Tessera shall be ultimately responsible
for the actions of the Tessera Affiliates pursuant to this Agreement.

     II.  LICENSEE RIGHTS

     A.   License Grant. Subject to the terms and conditions hereinafter set
forth, Licensee's agreement to the provisions hereof including all attachments
hereto, and Licensee's payment of the fees and royalties stated herein in
Paragraph III, Tessera hereby grants Licensee a non-exclusive, non-transferable,
non-sublicensable, limited license to the Tessera Patents to package and/or
assemble ICs into TCCs and use or sell such TCCs world wide. Licensee
specifically is NOT granted any "have made" rights which would allow Licensee to
have non-Affiliates package and/or assemble ICs into TCCs for Licensee.

     B.  Batch Technology Excluded. Notwithstanding anything herein to the
contrary, Batch Technology is excluded from the scope of this Agreement, and
Licensee's rights herein expressly exclude any right to package and/or assemble,
or sell any TCC made using Batch Technology.

     C.  No Implied License. Notwithstanding the foregoing, nothing in this
Agreement shall be construed to grant Licensee, successors or assigns or any
third parties an implied license under any patent owned by Tessera other than
the Tessera Patents.

     III.  FEE AND ROYALTY

       A.  License Fee. As consideration for the licenses and privileges of
Paragraph II.A. hereof, Licensee shall pay to Tessera the sum of [*] US DOLLARS
($[*]). The payment of such Licensee Fee shall be as follows:

         (1) Licensee shall pay [*] US DOLLARS (US$[*]) within thirty (30) days
of the Effective Date

         (2) the remaining [*] US DOLLARS (US$[*]) in License Fee compensation
shall be waived by Licensee's attainment of a minimum cumulative production
quantity and sales level of royalty bearing TCC packages (for which Licensee
pays Tessera a royalty directly, i.e. based upon this Agreement) on the
following schedule:

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

                                  Page 3 of 20

<PAGE>   4
TESSERA CONFIDENTIAL

<TABLE>
<CAPTION>
                                      Cumulative Production
                                         & Sales Quantity
                                        of royalty bearing
Deadline                                   TCC packages       Waiver Amount
----------------------------------    ---------------------   -------------
<S>                                   <C>                     <C>
Two years from the First Quarterly         [*]                 US$[*]
Payment due Tessera pursuant to
Paragraph V.

Three years from the First Quarterly       [*]                 US$[*]
Payment due Tessera pursuant to
Paragraph V.

Four years from the First Quarterly        [*]                 US$[*]
Payment due Tessera pursuant to
Paragraph V.
</TABLE>

     As Licensee meets the cumulative schedule (shown above) each year, the
amount listed in the "Waiver Amount" column shall be subtracted and waived from
the remaining [*] US DOLLARS due Tessera as a License Fee. If Licensee's
production and sales of royalty bearing TCC packages does not meet the
commitment schedule shown above at a respective Deadline, i.e. the end of a
respective production and sales period, any unpaid or unwaived portion of the
remaining [*] US DOLLAR License Fee shall be immediately due and payable to
Tessera from Licensee.

     B.   Royalty.  In addition to the License Fee, Licensee shall pay running
royalties for the license granted in Paragraph II.A. four times annually (as set
forth in Paragraph V) to Tessera during the term of this Agreement. Licensee
shall pay a royalty to Tessera in the amount of [*] US [*] (US$[*]) per Billable
Pin for TCCs made by Licensee hereunder, whether sold, transferred or used
internally.

     C.   Volume Adjustments.  Royalty payments due Tessera hereunder shall be
adjusted by multiplying Licensee's total base royalty calculated under Paragraph
III.B. above, by a factor of [*] ([*]) until Licensee has paid Tessera [*] US
DOLLARS (US$[*]) in aggregate royalties, and then by a factor of [*] ([*]) until
Licensee has paid Tessera an additional [*] US DOLLARS (US$[*]) in royalties.
DISCOUNT FOR PREPAYMENT: At any time, Licensee may elect to pay Tessera [*] US
DOLLARS (US$[*]) in lieu of any such Volume Adjustments, in which event said
Licensee shall notify Tessera and tender such payment and henceforth pay
royalties at the lowest level (as set forth in Paragraph III.B., above) without
any such Volume Adjustments.

     D.   Adjustments for CPI Changes.  Licensee's royalty payments shall be
further adjusted by multiplying amounts due under Paragraph III.C. above by a
factor based on changes in the US Consumer Price Index ("CPI"). Said factor is
deemed to be equal to one (1.0) for the first three years of the term of this
Agreement. During said term or any extension hereof, said

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

                                  Page 4 of 20
<PAGE>   5
TESSERA CONFIDENTIAL

factor shall be recalculated every three years by dividing the average of the
actual CPI during the three (3) years previous to such date of recalculation in
effect on each third anniversary by the actual CPI in effect on the Effective
Date of this Agreement. However, any change in the CPI pursuant to this
provision shall not cause an adjustment of more than a 50%.

     E.   Most Favored Royalty. As of the Effective Date, Tessera, in good
faith, intends that any agreement that Tessera enters into henceforth with
another similarly situated licensee whereby such licensee receives identical
rights, privileges, terms and conditions as contained in this Agreement, shall
be on royalty rate terms no more favorable to such other licensee than the
royalty terms set forth in this Agreement. The following shall not be deemed
agreements subject to this Paragraph: (i) agreements between Tessera and Tessera
Affiliates; (ii) cross-license or other agreements under which a substantial
portion of the consideration received by Tessera consists of rights to patents
and/or technology owned by the other party to such agreement; (iii) agreements
with governmental or educational agencies; and (iv) agreements in settlement of
litigation. In the event that Tessera grants another such identical license
having better royalty terms than the royalty terms set forth in this Agreement,
Tessera shall promptly notify Licensee of the financial terms of such other
license. Upon notice by Licensee, given within 30 days after such notice by
Tessera, this Agreement shall be amended to substitute all of the royalty terms
of such other license for the royalty terms of this Agreement, provided that
(a) Licensee must accept all of the royalty terms of such other license, and
may not select particular terms; and (b) such amendment shall not affect
Tessera's rights with respect to royalties or other moneys accrued and/or paid
prior to such amendment.

     IV.  TAXES

     Any taxes imposed by the Government of Japan based upon payments from
Licensee to Tessera under this Agreement shall be paid in accordance with the
United States-Japan Treaty for the Avoidance of Double Taxation. Tessera
acknowledges that Tessera shall be obligated to pay tax at the reduced
withholding income tax rate of ten percent (10%) rather than the ordinary rate
of twenty percent (20%) by filing the officially sanctioned "Application Form
for Income Tax Convention between the United States and Japan" (hereinafter
"Application Form") with the Japanese tax authorities. Licensee shall send
Tessera the Application Form within thirty (30) days after execution of this
Agreement for Tessera's signature and Tessera shall immediately sign and return
it to Licensee so that Licensee may file it with the relevant Japanese tax
authorities on behalf of Tessera. Tessera agrees that notwithstanding the
payment condition as set forth elsewhere in this Agreement, Licensee may
withhold the remittance of the payment until Licensee completes the filing
procedure of the Application Form with the Japanese tax authorities; provided,
however, that in no event such withholding of the remittance shall extend
beyond the end of fifteen (15) working days from the date when Licensee
received the signed Application Form from Tessera. Licensee shall deduct and
pay any taxes due the Japanese government from payments made by licensee
hereunder to the tax authorities in Japan. Licensee shall promptly furnish
Tessera with the corresponding tax receipts and/or certificates evidencing
payments or registration thereof.

                                  Page 5 of 20
<PAGE>   6
TESSERA CONFIDENTIAL

     V.    LICENSEE REPORTS AND PAYMENT

     Quarterly Royalty Payments. Beginning on the Effective Date of this
Agreement, royalties shall be calculated and paid in full in quarter annual
payment periods ending March 31, June 30, September 30 and December 31 of each
year. Beginning with the first such royalty calculation and payment, Licensee
shall deliver a written report (as shown in Attachment B) describing the basis
upon and containing the information sufficient to determine the royalties due
Tessera for the applicable payment period. All payments under this Paragraph
shall be made in US Dollars by wire transfer to Union Bank of California, 99
Almaden Blvd., San Jose, CA 95113, Account Name: Tessera, Account No.:
6450148359, Routing No. 122000496, International Swift Code: UBLAUS66, or such
other bank or account as Tessera may from time to time designate in writing.
Licensee will further submit with each such calculation report, an accounting of
the total quantity of TCCs manufactured by Licensee as compared to the total
quantity of TCCs manufactured for Licensee by a separate Tessera TCC assembly
licensee. The payments of royalties and submission of royalty reports from
Licensee to Tessera under this Paragraph shall be made within sixty (60) days
from the end of each reporting calendar quarter and shall be considered to be
made as of the day on which such payments are received in Tessera's designated
bank account.

     VI.   INTENTIONALLY LEFT BLANK.

     VII.  IMPROVEMENT GRANTBACK

     A.    Licensee Improvement Grantbacks. Licensee agrees not to assert that
Tessera infringes Licensee's Patents covered by any inventions contained in
Licensee Improvements conceived of prior to the termination of this Agreement so
that Tessera may manufacture, have manufactured, use, sell or offer for sale
TCCs (excluding Batch Technology).

     B.   Cross Licensing With Other Tessera Licensees. Licensee agrees to
negotiate in good faith with the other licensees of Tessera on commercially
reasonable terms a non-exclusive, non-transferable, non-sublicensable license
under Licensee's Patents covering any inventions contained in such Licensee
Improvements that are discoverable from an examination of the TCCs made by
Licensee unless such other licensees refuse to grant to Licensee similar
licensees under any of such other licensees' patent relating to any
improvements developed by such other licensee on similar commercially
reasonable terms. In no event shall Licensee be under any obligation to
negotiate such licenses in good faith with other licensees of Tessera, unless
Licensee Improvements are used in IC packages sold externally to non-Affiliates
or proposed by Licensee and adopted for incorporation into a TCC packaging
standard.

     VII. TRADEMARKS & LICENSE NOTICE

     A.   Trademark Ownership. Licensee acknowledges Tessera's ownership of the
following trademarks: TESSERA BLOCK LOGO, TCC, COMPLIANT CHIP, (mu)BGA, Micro
BGA and F-(mu)BGA (hereinafter "Marks"). Licensee agrees that it will do nothing
inconsistent with such ownership and that all use of the Marks by Licensee shall
inure to the benefit of and be on behalf of Tessera. Licensee agrees that
nothing in this Agreement shall give Licensee any

                                  Page 6 of 20

<PAGE>   7
TESSERA CONFIDENTIAL

right, title or interest in the Marks other than the right to use the Marks in
accordance with this Agreement to make and sell TCCs according to the Standards.

     B.  Trademark License Grant. Subject to the IC packages manufactured
pursuant to this Agreement meeting all of the Standards, Licensee's agreement
and compliance with to other provisions of this Agreement including all
attachments hereto, and Licensee's payment of the fees and royalties stated
herein in Paragraph III, Tessera hereby grants Licensee a non-exclusive,
non-transferable, non-sublicensable limited license to use the Marks to identify
and distinguish the royalty bearing TCCs that are sold by Licensee under this
Agreement, subject to the proper use of such Marks (as set forth in this
Paragraph below) and the acknowledgement of ownership of such Marks in
documentation, articles and promotional material; to wit, each such use shall
contain the following text: "__________ (List of the Marks used in the item) are
trademarks of Tessera, Inc." or a suitable variant thereof to account for a
singular use of one or more of the Marks.

     C.  Trademark Form of Use. Licensee shall use its best efforts to use the
Marks as modifiers in conjunction with generic nouns, e.g. the (mu)BGA(R)
package. Further, all of the Marks, except "Micro BGA" and "F-(mu)BGA", are
federally registered by the U.S. Trademark Office. As such, Licensee shall use
the "(R)" symbol adjacent the Marks in all titles and headings and other
prominent uses of the Marks and shall also use its best efforts to use the "R"
symbol on at least the first and most obvious use of each of the Marks within
the text of any printed material. "Micro BGA" and "F-(mu)BGA" are common law
trademarks of Tessera. As such, Licensee shall use the "(TM)" symbol adjacent
this Mark in all titles and headings and other prominent uses of the Micro BGA
marks and shall also use its best efforts to use the "(TM)" symbol on at least
the first and most obvious use of each such mark within the text of any printed
material.

     D.  License Notice. Licensee promotional material and advertisements
referring to royalty bearing TCCs may include a prominent written notice that
"These products are made under a license from Tessera, Inc.".

     IX.  THIS PARAGRAPH INTENTIONALLY LEFT BLANK

     X.   TERM AND TERMINATION

     A.   Term. This Agreement shall become effective on the Effective Date and,
unless earlier terminated as provided for elsewhere in this Agreement, shall
remain in full force until the expiration of the last to expire of any Tessera
Patent. Notwithstanding, Licensee may terminate this Agreement by reason of
non-use of the relevant Tessera Patents licensed hereunder; such termination by
Licensee shall take effect immediately upon Tessera's receipt of a written
notice signed by Licensee.

     B.   Termination for Breach. Either party may terminate this Agreement due
to the other party's breach of this Agreement, such as failure to perform its
duties, obligations, or responsibilities herein (including, without limitation,
failure to pay royalties and provide reports as set forth herein). The parties
agree that such breach will cause substantial damages to the party not in
breach. Therefore, the parties agree to work together to mitigate the effect of
any such breach; however, the non-breaching party may terminate this Agreement
if such breach is

                                  Page 7 of 20

<PAGE>   8
TESSERA CONFIDENTIAL

not cured or sufficiently mitigated (to the non-breaching party's satisfaction)
within sixty (60) days of notice thereof.

     C.   Termination for Assignment. In the event that (i) a party either sells
or assigns substantially all of its assets or business to a third party
("Selling Party") or (ii) a third party acquires more than fifty percent (50%)
of the capital stock entitled to vote for directors of such party ("Purchasing
Party"), the Selling Party shall notify the other party hereto of such sale or
assignment of assets or the Purchasing Party's acquisition. In any case of
sale, assignment or acquisition, the Selling Party shall provide to the other
party a written confirmation from such Purchasing Party stating that such
Purchasing Party shall expressly undertake all the terms and conditions of this
Agreement to be performed by Selling Party. In the event that Licensee is the
Selling Party and the Purchasing Party does not agree to fulfill such
obligations under this Agreement, Tessera shall reserve a right to terminate
this Agreement. In the event Tessera is the Selling Party, the Purchasing Party
shall be bound to the terms and obligations of this Agreement.

     D.   Termination for Bankruptcy. In the event that one party becomes
insolvent or bankrupt, permanently ceases doing business, makes an assignment
for the benefit of its creditors, commits an act of bankruptcy, commences any
bankruptcy proceedings or other proceedings in the nature of bankruptcy
proceedings, or has commenced against it any bankruptcy proceedings or other
proceedings in the nature of bankruptcy proceedings that are not dismissed
within sixty (60) days, then the other party shall have the right to terminate
this Agreement immediately upon its notice.

     E.   Any termination of this Agreement pursuant to this Paragraph X shall
be deemed a termination of this Agreement in accordance with its terms
(including termination of any payments of unaccrued royalties to Tessera and
any rights of Licensee to use any Tessera Patent licensed hereunder).

     F.   Survival Clause. Unless otherwise provided elsewhere in this
Agreement, the following provisions shall survive the termination or expiration
of this Agreement:

          1.   Licensee's obligation to make payments and associated payment
reports (as stipulated in Paragraph V) to Tessera accrued under this Agreement
on or prior to expiration or termination.

          2.   Licensee's obligation to permit the inspection and audit of its
account record stipulated in Paragraph XI.A., Financial Audit, shall expire
five (5) years from any termination of this Agreement.

          3.   Paragraph VII.A., Licensee Improvement Grantbacks.

          4.   Paragraph X, Term and Termination.

          5.   Paragraph XII, No Warranties

          6.   Paragraph XIII, Limitation on Damages

                                  Page 8 of 20

<PAGE>   9
TESSERA CONFIDENTIAL

          7.   Paragraph XIV, Confidentiality of Agreement Terms

          8.   Paragraph XV, Indemnity

          9.   Paragraph XVI, Miscellaneous

     XI.  REASONABLE AUDIT

     A.   Financial Audit. Upon reasonable written prior notice, Tessera shall
have the right to examine and audit through an independent third party CPA
firm, not more frequently than once per year, all records of Licensee that may
contain information bearing upon the amount of fees payable under this
Agreement; provided, that the said auditor shall have agreed in advance in
writing to maintain in confidence and not to disclose to Tessera or any third
party any Licensee proprietary information obtained during the course of such
audit. The results of any such audit shall be final, and within thirty (30)
days after receiving the auditor's report, Licensee shall make payment to
Tessera of any amount which may be found to be payable, if any. Tessera shall
bear the expenses of such audit examinations unless royalties due and owing to
Tessera are determined by the auditor to be at least five percent (5%) greater
than such similar amounts as calculated and/or paid by Licensee, in which case
Licensee shall bear such expenses.

     B.   Standards Audit. Prior to the first shipment of TCCs to a third party
by Licensee upon which Licensee intends to bear the Marks under the license set
forth in Paragraph VIII.B. pursuant to this Agreement, Licensee shall provide
Tessera with sufficient quantities of such packages to enable Tessera to
determine if such packages are in compliance with the Standards. Upon receipt
of such packages, Tessera shall promptly perform the tests set forth in
Attachment C and provide a written report to Licensee detailing the results of
the tests so performed. After the Licensee manufactured TCCs have passed
Tessera's testing requirements, Licensee may use the Marks as set forth in
Paragraph VIII. To ensure the on-going, future minimum quality and reliability
of the TCCs sold by Licensee under any of the Marks pursuant to this Agreement,
Tessera shall have a right to perform the tests set forth in Attachment C at
any time during the term of this Agreement upon 60 day written notice by
Tessera to Licensee of Tessera's intention to perform such Standards testing.
Upon Licensee's receipt of such written notice from Tessera, Licensee shall
promptly provide sufficient quantities of TCCs for such testing. Upon receipt
of such packages, Tessera shall promptly perform the tests and provide a
written report to Licensee detailing the results of the tests so performed.

     XII. NO WARRANTIES

     Licensee acknowledges and agrees that the rights and licenses, Tessera
Patents and specifications granted or otherwise provided hereunder are provided
to Licensee "AS IS", with no warranty of any kind. TESSERA MAKES NO WARRANTY,
EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, CONCERNING THE SUBJECT MATTER OF THIS
AGREEMENT, INCLUDING WITHOUT LIMITATION, WARRANTIES OF FITNESS FOR A PARTICULAR
PURPOSE, QUALITY, USEFULNESS OR NONINFRINGEMENT. Tessera makes no warranty that
the Tessera Patents, any specifications or Standards provided by Tessera to
Licensee will be sufficient to yield any particular result.

                                  Page 9 of 20
<PAGE>   10
TESSERA CONFIDENTIAL

    XIII. LIMITATION ON DAMAGES

     IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY OTHER
PERSON OR ENTITY (UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER
THEORY) FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR
RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR LOSSES.

     XIV. CONFIDENTIALITY OF AGREEMENT TERMS

     A.   Tessera and Licensee shall keep the terms of this Agreement
(including all Attachments hereto) confidential except:

          (1)  to any court or governmental body or agency compelling such
disclosure; however, any disclosure shall be limited to that compelled by the
governmental body or agency and the disclosing party will take all reasonable
actions to obtain a protective order protecting the disclosure; or

          (2)  as may otherwise be required by law; or

          (3)  either party may disclose to third parties the existence of this
Agreement.

     B.   A party receiving a request, subpoena or order for the disclosure of
the terms or conditions of this Agreement shall notify the other party as soon
as practicable and if, at all possible, in sufficient time to allow the other
party to oppose disclose or seek appropriate protective orders. The party
receiving such request, subpoena or order shall cooperate to the extent
reasonably possible with the other party in any effort to oppose disclosure or
seek protective orders.

      XV. INDEMNITY

     A.   Licensee agrees to defend, indemnify and hold Tessera harmless from
and against any and all damages, liabilities, costs and expenses (including
reasonable attorney's fees and expenses) arising out of or related to Licensee's
use of Tessera's Patents or any Tessera specifications. Notwithstanding,
Licensee shall not bear the obligation or expense of defending the validity of
any Tessera Patent. Tessera shall have sole control over and bear the expense
for so defending the validity of the Tessera Patents.

     B.   Tessera agrees to defend, indemnify and hold Licensee harmless from
and against any and all damages, liabilities, costs and expenses (including
reasonable attorney's fees and expenses) arising out of or related to Tessera's
use of Licensee Improvements or any Licensee specifications. Notwithstanding,
Tessera shall not bear the obligation or expense of defending the validity of
any Licensee Patent. Licensee shall have sole control over and bear the expense
for so defending the validity of the Licensee Patents.

                                 Page 10 of 20
<PAGE>   11
TESSERA CONFIDENTIAL

     XVI. MISCELLANEOUS

     The following additional terms shall apply to this Agreement:

     A.   Governing Law.  This Agreement shall be governed, interpreted and
construed in accordance with the laws of the State of California, irrespective
of choice of laws provisions. Both parties shall use their best efforts to
resolve by mutual agreement any disputes, controversies, claims or difference
which may arise from, under, out of or in connection with this Agreement. If
such disputes, controversies, claims or differences cannot be settled between
the parties, any litigation between the parties relating to this Agreement shall
take place in San Jose, California. The parties hereby consent to personal
jurisdiction and venue in the state and federal courts of California.

     B.   No Waiver.  Any waiver, express or implied, by either of the parties
hereto of any right hereunder or default by the other party, shall not
constitute or be deemed a continuing waiver or a waiver of any right or default.
No failure or delay on the part of either party in the exercise of any right or
privilege hereunder shall operate as waiver thereof, nor shall any single or
partial exercise of such right or privilege preclude other or further exercise
thereof or any other right or privilege.

     C.   Equitable Relief: Nothing herein shall preclude either party from
taking whatever actions are necessary to prevent immediate, irreparable harm to
its interests. Otherwise, these procedures are exclusive and shall be fully
exhausted prior to the initiation of any litigation.

     D.   Notices.  All notices, required documentation, and correspondence in
connection herewith shall be in the English language, shall be provided in
writing and shall be given by facsimile transmission or by registered or
certified letter to Tessera and Licensee at the addresses and facsimile numbers
set forth below:

          Tessera:  Tessera, Inc.
                    3099 Orchard Dr.
                    San Jose, California 95134
                    Facsimile No.: 408-894-0768
                    Attn: Chief Executive Officer

          Licensee: Toshiba Corporation
                    1-1, Shibaura 1-Chome.
                    Minato-ku, Tokyo 105-8001, Japan
                    Facsimile No.: 81-3-5444-9213
                    Attn.: Senior Manager
                           Licensing & Contracts Department
                           Intellectual Property Division

     Either Party may change its address and/or facsimile number by giving the
other party notice of such new address and/or facsimile number. All notices if
given or made by registered or certified letter shall be deemed to have been
received on the earlier of the date actually received and the date three days
after the same was posted and if given or made by facsimile

                                 Page 11 of 20
<PAGE>   12
TESSERA CONFIDENTIAL

transmission shall be deemed to have been received at the time of dispatch,
unless such date of deemed receipt is not a business day, in which case the
date of deemed receipt shall be the next succeeding business day.

      E.    Invalidity. If any provision of this Agreement is declared invalid
or unenforceable by a court having competent jurisdiction, it is mutually
agreed that this Agreement shall endure except for the part declared invalid or
unenforceable by order of such court. The parties shall consult and use their
best efforts to agree upon a valid and enforceable provision which shall be a
reasonable substitute for such invalid or unenforceable provision in light of
the intent of this Agreement.

      F.    Assignment. Neither party may assign this Agreement or any of its
right or obligations hereunder without the prior written consent of the other
party.

      G.    Export Regulations. Both parties shall comply with the laws and
regulations of the government of the United States and of any country as
relevant to each party hereto relating to the export of commodities and
technical data.

      H.    Section Headings. The headings and captions used herein shall not
be used to interpret or construe this Agreement.

      I.    Entire Understanding. This Agreement embodies the entire
understanding between the parties relating to the subject matter hereof,
whether written or oral, and there are no prior representations, warranties or
agreements between the parties not contained in this Agreement. Any amendment
or modification of any provision of this Agreement must be in writing, dated
and signed by both parties hereto.

      IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

TESSERA, INC.                             TOSHIBA CORPORATION

By:  /s/ JOHN W. SMITH                    By:  /s/ KOICHI SUZUKI
   ----------------------------------        -----------------------------------

Print Name:  John W. Smith                Print Name:  Koichi Suzuki
           --------------------------                ---------------------------
                                                Vice President & Group Executive
Title:       President                    Title:  Semiconductor Group
      -------------------------------           --------------------------------

Date:  3-24-99                            Date:  March 31, 1999
     --------------------------------          ---------------------------------

                                 Page 12 of 20

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