Document:

exv10w3

 

EXHIBIT 10.3

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT (the “Agreement”) is made as of this ___day of                     ,
200_, by and between United Commercial Bank, a California state-chartered bank, (the “Bank”) and
                                                        , an individual (“Indemnitee”).

RECITALS

     A.     The Bank and Indemnitee recognize that unforeseen litigation may subject directors,
officers and agents to costs and expenses.

     B.     The Bank desires to attract and retain the services of highly qualified individuals, such
as Indemnitee, to serve as directors, officers and agents of the Bank and to indemnify its
directors, officers and agents so as to provide them with the maximum protection permitted by law.

     In consideration of the Recitals set forth above and mutual covenants and agreements set forth
below, the Bank and Indemnitee do hereby agree as follows:

AGREEMENT

     1.     Indemnification and Expense Advancement.

             (a)     Proceedings Other than by Right of the Bank. The Bank shall indemnify Indemnitee
if Indemnitee was or is a party or is threatened to be made a party to any proceeding (other than
an action by or in the right of the Bank to procure a judgment in its favor) by reason of the fact
that Indemnitee is or was an Agent (as defined in Section 1(i) below) of the Bank, against costs,
expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in
connection with such proceeding if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the best interests of the Bank and, in the case of a criminal
proceeding, has no reasonable cause to believe the conduct of Indemnitee was unlawful. The
termination of any proceeding by judgment, order, settlement, conviction or upon a plea of nolo
contendere or its equivalent shall not, of itself, create a presumption that Indemnitee did not act
in good faith and in a manner which Indemnitee reasonably believed to be in the best interests of
the Bank or that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

             (b)     Proceedings By or in the Right of the Bank. The Bank shall indemnify Indemnitee
if Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or
completed action by or in the right of the Bank to procure a judgment in its favor by reason of the
fact that Indemnitee is or was an Agent of the Bank, against expenses actually and

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reasonably incurred by Indemnitee in connection with the defense or settlement of such action if
Indemnitee acted in good faith, in a manner Indemnitee believed to be in the best interests of the
Bank and its shareholders; except that no indemnification shall be made under this Section 1(b) for
any of the following:

                       (i)     In respect of any claim, issue or matter as to which Indemnitee shall have been adjudged
to be liable to the Bank in the performance of Indemnitee’s duty to the Bank and its shareholders,
unless and only to the extent that the court in which such proceeding is or was pending shall
determine upon application that, in view of all the circumstances of the case, Indemnitee is fairly
and reasonably entitled to indemnity for the expenses which such court shall determine;

                       (ii)    Of amounts paid in settling or otherwise disposing of a pending action without court
approval; or

                       (iii)   Of expenses incurred in defending a pending action which is settled or otherwise
disposed of without court approval.

             (c)     Determination of Right of Indemnification. Any indemnification under Sections
1(a) and (b) shall be made by the Bank only if authorized in the specific case, upon a
determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee
has met the applicable standard of conduct set forth above in Sections 1(a) and (b) by any of the
following:

                       (i)     A majority vote of a quorum consisting of directors who are not parties to such
proceeding; or

                       (ii)    If such a quorum of directors is not obtainable, by independent legal counsel in a
written opinion; or

                       (iii)   Approval of the shareholders by the affirmative vote of a majority of the shares
entitled to vote represented at a duly held meeting at which a quorum is present or by the written
consent of shareholders as provided in the Bylaws, with the shares owned by the person to be
indemnified not being entitled to vote thereon; or

                       (iv)   By the court in which such proceeding is or was pending upon application made by the Bank
or its Agent or attorney or other person rendering services in connection with the defense, whether
or not such application by the Agent, attorney or other person is opposed by the Bank.

             (d)     Advances of Expenses. Expenses (including reasonable attorneys’ and experts’
fees), costs, and charges incurred in defending any proceeding shall be advanced promptly by the
Bank prior to the final disposition of such proceeding upon receipt of a written undertaking by or
on behalf of Indemnitee to repay such amount unless it shall be determined

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ultimately that Indemnitee is entitled to be indemnified as authorized in this Section 1. The form
of such undertaking shall be substantially similar to Exhibit A hereto.

             (e)     Indemnification Against Expenses of Successful Party. Notwithstanding the other
provisions of this Section 1, to the extent that Indemnitee has been successful on the merits in a
defense of any proceeding, claim, issue or matter referred to in Sections 1(a) and (b), Indemnitee
shall be indemnified against all expenses actually and reasonably incurred by Indemnitee in
connection therewith.

             (f)     Right of Indemnitee to Indemnification Upon Application; Procedure Upon
Application. Any indemnification provided for in Sections 1(a), (b) or (e) shall be made no
later than ninety (90) days after the Bank is given notice of request by Indemnitee, provided that
any indemnification under Sections 1(a) and (b) is authorized pursuant to Section 1(c). Any such
request for indemnification must be made within ninety (90) days of the final adjudication,
dismissal, or settlement of the matter for which Indemnitee seeks indemnification, unless an appeal
is filed, in which case the request may be made within ninety (90) days after the appeal is
resolved (hereafter referred to as “Final Disposition”). Upon such notice, if a quorum of
directors who were not parties to the action, suit, or proceeding giving rise to indemnification is
obtainable, the Bank shall within two (2) weeks call a Board of Directors meeting to be held within
four (4) weeks of such notice, to make a determination as to whether Indemnitee has met the
applicable standard of conduct. Otherwise, if a quorum consisting of directors who were not
parties in the relevant action, suit, or proceeding is not obtainable, the Bank shall retain (at
the Bank’s expense) independent legal counsel chosen by the Bank within two (2) weeks to make such
determination.

                      If notice of a request for payment of a claim under any statute, under this Agreement, or
under the Bank’s Articles of Incorporation or Bylaws providing for indemnification or advance of
expenses has been given to the Bank by Indemnitee, and such claim is not paid in full by the Bank
within ninety (90) days of the later occurring of the giving of such notice and Final Disposition
in case of indemnification and ten (10) days of the giving of such notice in case of advance of
expenses, Indemnitee may, but need not, at any time thereafter bring an action against the Bank to
receive the unpaid amount of the claim or the expense advance and, if successful, Indemnitee shall
also be paid for the expenses (including reasonable attorneys’ and experts’ fees) of bringing such
action. It shall be a defense to any such action (other than an action brought to enforce a claim
for expenses incurred in connection with any action, suit, or proceeding in advance of its Final
Disposition) that Indemnitee has not met the standards of conduct which make it permissible under
applicable law for the Bank to indemnify Indemnitee for the amount claimed, and Indemnitee shall be
entitled to receive interim payment of expenses pursuant to Section 1(d) unless and until such
defense may be finally adjudicated by court order or judgment from which no further right of appeal
exists. Neither the failure of the Bank (including its Board of Directors, independent legal
counsel, or its shareholders) to have made a determination that indemnification of Indemnitee is
proper in the circumstances because Indemnitee has met the applicable standard of conduct required
by applicable law, nor an actual determination by the Bank (including its Board of Directors or its
independent legal counsel) that

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Indemnitee has not met such applicable standard of conduct, shall create a presumption that
Indemnitee has or has not met the applicable standard of conduct.

             (g)     Insurance. The Bank may purchase and maintain insurance on behalf of any person
who is or was an Agent against any liability asserted against such person and incurred by him or
her in any such capacity, or arising out of his or her status as such, whether or not the Bank
would have the power to indemnify such person against such liability under the provisions of this
Section 1.

             (h)     Optional Means of Assuring Payment. Upon request by an Indemnitee certifying that
Indemnitee has reasonable grounds to believe Indemnitee may be made a party to a proceeding for
which Indemnitee may be entitled to be indemnified under this Section 1, the Bank may, but is not
required to, create a trust fund, grant a security interest or use other means (including, without
limitation, a letter of credit) to ensure the payment of such sums as may become necessary to
effect indemnification as provided herein.

             (i)     Definition of Agent. For the purposes of this Agreement, “Agent” means any person
who is or was a director, officer, employee or other agent of the Bank, or is or was serving at the
request of the Bank as a director, officer, employee or agent of another foreign or domestic Bank,
partnership, joint venture, trust or other enterprise, or was a director, officer, employee or
agent of a foreign or domestic Bank which was a predecessor Bank of the Bank or of another
enterprise at the request of such predecessor Bank; “proceeding” means any threatened, pending or
completed action or proceeding, whether civil, criminal, administrative or investigative; and
“expenses” includes without limitation reasonable attorneys’ and experts’ fees and any expenses of
establishing a right to indemnification.

             (j)     Indemnification under Section 204(a)(11) of the California General Corporation
Law. Subject to the provisions of California General Corporation Law Section 204(a)(11) and
any other applicable law, notwithstanding any other provisions of this Section 1, the following
shall apply to the indemnification of Indemnitee:

                      (i)     The Bank shall indemnify Indemnitee pursuant to this Section 1(l) if the Bank would be
required to indemnify Indemnitee pursuant to Sections 1(a) or (b) if in Section 1(a) or (b) the
phrase “in a manner Indemnitee reasonably believed to be in the best interests of the Bank” is
replaced with the phrase “in a manner Indemnitee did not believe to be contrary to the best
interests of the Bank.” If pursuant to Sections 1(c) and (f) the person making the Section 1(a)
and/or (b) conduct standard determination determines that such standard has not been satisfied,
such person shall also determine whether this Section 1(l)(i) conduct standard has been satisfied;

                      (ii)    There shall be a presumption that Indemnitee met the applicable standard of conduct
required to be met in Section 1(c) for indemnification, rebuttable by clear and convincing evidence
to the contrary;

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                      (iii)      The Bank shall have the burden of proving that Indemnitee did not meet the applicable
standard of conduct in Section 1(c);

                      (iv)     In addition to the methods provided for in Section 1(c), a determination that
indemnification is proper in the circumstances because that Indemnitee met the applicable standard
of conduct may also be made by the arbitrator in any arbitration proceeding in which such matter is
or was pending; and

                      (v)       Unless otherwise agreed to in writing between an Indemnitee and the Bank in any specific
case, indemnification may be made under Section 1(b) for amounts paid in settling or otherwise
disposing of a pending action without court approval.

     2.     Changes.

          In the event of any change, after the date of this Agreement, in any applicable law, statute,
or rule which expands the right of a California state-chartered bank to indemnify a member of its
board of directors, its officers or its Agents, such changes shall automatically expand, without
further action of the parties, Indemnitee’s rights and the Bank’s obligations, under this
Agreement. In the event of any change in any applicable law, statute or rule which narrows the
right to indemnify a member of its board of directors, its officers or its Agents, such changes, to
the extent not otherwise required by such law, statute or rule to be applied to this Agreement,
shall have no effect on this Agreement or the parties’ rights and obligations hereunder. In the
event of an amendment to the Bank’s Bylaws which expands the right to indemnify a member of its
board of directors, its officers or its Agents, such change shall automatically expand, without
further action of the parties, Indemnitee’s rights and Bank’s obligations under this Agreement. In
the event of any amendment to the Bank’s Bylaws which narrows such right of a California
state-chartered bank to indemnify a member of its board of directors, its officers or its Agents,
such change shall only apply to the indemnification of Indemnitee for acts committed, or lack of
action, by Indemnitee after such amendment. The Bank agrees to give Indemnitee prompt written
notice of amendments to the Bank’s Bylaws which concern indemnification.

     3.     Nonexclusivity.

          The indemnification provided by this Agreement shall not be deemed exclusive of any rights to
which Indemnitee may be entitled under the Bank’s Articles of Incorporation, its Bylaws, any
agreement, any vote of shareholders or disinterested Directors, the California General Corporation
Law, or otherwise, both as to action in Indemnitee’s official capacity and as to action in any
other capacity while holding such office (an “Indemnified Capacity”). The indemnification provided
under this Agreement shall continue as to Indemnitee for any action taken or not taken while
serving in an Indemnified Capacity even though such Indemnitee may have ceased to serve in an
Indemnified Capacity at the time of any action, suit or other covered proceeding, and shall inure
to the benefit of the heirs, executors, and administrators of Indemnitee.

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     4.     Partial Indemnification.

             If Indemnitee is entitled under any provision of this Agreement to indemnification by the Bank
for some or a portion of the expenses, judgment, fines or penalties actually or reasonably incurred
by Indemnitee in the investigation, defense, appeal or settlement of any civil or criminal action,
suit or proceeding, but not, however, for the total amount thereof, the Bank shall nevertheless
indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which
Indemnitee is entitled pursuant to this Agreement.

     5.     Potential Limitations.

             Both the Bank and Indemnitee acknowledge that in certain instances, California state law and
federal banking laws and regulations, federal law or public policy may override applicable state
law and prohibit the Bank from indemnifying its directors and officers under this Agreement or
otherwise. For example, the Bank and Indemnitee acknowledge that the federal regulators have taken
the position that indemnification is not permissible for liabilities arising under certain federal
securities laws, and federal legislation prohibits indemnification for certain ERISA violations.
Indemnitee understands and acknowledges that the Bank has undertaken or may be required in the
future to undertake with federal regulators to submit questions of indemnification to a court in
certain circumstances for a determination of the Bank’s right under public policy to indemnify
Indemnitee. Furthermore, Indemnitee and Bank acknowledge that the extent of (i) indemnification
permissible under Section 204(a)(11) of the California General Corporation Law has not been
judicially determined; therefore, the enforceability of Indemnitee’s rights under Section 1(l) is
uncertain; and (ii) advancement of expenses and indemnification of Indemnitee in the event of a
proceeding or action described in Section 7(a) below, is also uncertain and may not be permissible
or may be subject to applicable regulatory restrictions.

     6.     Severability.

             Nothing in this Agreement is intended to require or shall be construed as requiring the Bank
to do or fail to do any act in violation of applicable law. The Bank’s inability, pursuant to
court order, to perform its obligations under this Agreement shall not constitute a breach of the
Agreement. If the application of any provision or provisions of the Agreement to any particular
facts or circumstances shall be held to be invalid or unenforceable by any court of competent
jurisdiction, then (i) the validity and enforceability of such provision or provisions as applied
to any other particular facts or circumstances and the validity of other provisions of this
Agreement shall not in any way be affected or impaired thereby and (ii) such provision(s) shall be
reformed without further action by the parties to make such provision(s) valid and enforceable when
applied to such facts and circumstances with a view toward requiring the Bank to indemnify
Indemnitee to the fullest extent permissible by law.

     7.     Exceptions.

             Notwithstanding any other provision herein to the contrary, the Bank shall not be obligated
pursuant to the terms of this Agreement:

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             (a)     Regulatory Agency Proceedings. To indemnify Indemnitee for expenses, penalties or
other payments incurred in an administrative proceeding or action threatened instituted by a bank
regulatory agency, which proceeding or action results in a final order imposing injunctive or
similar relief or assessing civil money penalties or in any other resolution requiring or
preventing action by the Indemnitee; or

             (b)     Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to proceedings or claims (except counter-claims or cross-claims) initiated or brought
voluntarily by Indemnitee and not by way of defense, except with respect to proceedings brought to
establish or enforce a right to indemnification under this Agreement or any other statute or law or
otherwise as required by the California General Corporation Law, but such indemnification or
advancement of expenses may be provided by the Bank in specific cases if the Board of Directors
finds it to be appropriate; or

             (c)     Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by
Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this
Agreement, if a majority of the Bank’s directors or a court of competent jurisdiction determines
that the material assertions made by Indemnitee in such proceeding were not made in good faith or
was frivolous; or

             (d)     Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and
amounts paid in settlement) which have been paid directly to Indemnitee by an insurance carrier
under a policy of officers’ and directors’ liability or other insurance maintained by the Bank; or

             (e)     Claims under Section 16(b). To indemnify Indemnitee for expenses or the payment
of profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

     8.     Counterparts.

             This Agreement may be executed in one or more counterparts, each of which shall constitute an
original.

     9.     Successors and Assigns.

             This Agreement shall be binding upon the Bank and its successors and assigns, and shall inure
to the benefit of Indemnitee and Indemnitee’s estate, heirs, and legal representatives and
permitted assigns. Indemnitee may not assign this Agreement without the prior written consent of
the Bank.

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     10.     Attorneys’ Fees.

               In the event that any action is instituted by Indemnitee under this Agreement to enforce or
interpret any of the terms hereof, Indemnitee shall be entitled to be paid all court costs and
expenses, including reasonable attorneys’ and experts’ fees, incurred by Indemnitee with respect to
such action, unless as a part of such action, the court of competent jurisdiction determines that
each of the material assertions made by Indemnitee as a basis for such action were not made in good
faith or were frivolous. In the event of an action instituted by or in the name of the Bank under
this Agreement or to enforce or interpret any of the terms of this Agreement, Indemnitee shall be
entitled to be paid all court costs and expenses, including reasonable attorneys’ and experts’
fees, incurred by Indemnitee in defense of such action (including with respect to Indemnitee’s
counterclaims and cross-claims made in such action), unless as a part of such action the court
determines that each of Indemnitee’s material defenses to such action were made in bad faith or
were frivolous.

     11.     Notice.

               All notices, requests, demands and other communications under this Agreement shall be in
writing and shall be deemed duly given (i) if delivered by hand and signed for by the party
addressee, on the date of such receipt, or (ii) if mailed by certified or registered mail with
postage prepaid, on the third business day after the date postmarked. Addresses for notice to
either party are as shown on the signature page of this Agreement, or as subsequently modified by
written notice.

     12.     Section Headings.

               The Section headings in this Agreement are solely for convenience and shall not be considered
in its interpretation.

     13.     Waiver.

               A waiver by either party of any term or condition of the Agreement or any breach thereof, in
any one instance, shall not be deemed or construed to be a waiver of such term or condition or of
any subsequent breach thereof.

     14.     Entire Agreement; Amendment.

               This instrument contains the entire integrated Agreement between the parties hereto and
supersedes all prior negotiations, representations or agreements, whether written or oral except
for the Bank’s Articles of Incorporation and Bylaws. It may be amended only by a written
instrument signed by a duly authorized officer of Bank and by Indemnitee.

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     15.     Choice of Law and Forum.

               Except for that body of law governing choice of law, this Agreement shall be governed by, and
construed in accordance with, internal laws of the State of California which govern transactions
between California residents.

     16.     Mediation/Arbitration.

               (a)     All disputes, claims or controversies arising out of or relating to this Agreement
(collectively, “Disputes”) shall be submitted to non-binding mediation by either party to an
impartial mediator, as agreed to by the parties, and appointed through JAMS in San Francisco,
California, for a good faith effort at resolution. The mediator shall review the Dispute within
thirty (30) days of submission or at such other time provided the parties so agree. Any mediation
fee shall be paid equally among the parties. Any Dispute which is not resolved through such
mandatory mediation shall be settled by final and binding arbitration before a single neutral
arbitrator of JAMS in accordance with the then current Commercial Arbitration Rules of the American
Arbitration Association in San Francisco, California. Judgment on the award rendered by the
arbitrator may be entered in any court in California. In the event that any Dispute between
Indemnitee and the Bank should result in arbitration, the prevailing party in the Dispute shall be
entitled to recover from the other party all reasonable fees, costs and expenses of enforcing any
right of the prevailing party, including, without limitation, reasonable attorneys’ fees, experts’
fees, and expenses. Each party agrees that the Dispute as mediated and/or arbitrated and the final
resolution of such Dispute shall be considered to be confidential information, and shall be kept
confidential by each party.

               (b)     Indemnitee specifically acknowledges and understands that by agreeing to this provision,
Indemnitee is waiving all rights to have his or her claims brought, investigated, and/or
adjudicated by an administrative agency, or heard before a judge or jury. Indemnitee also
understands that Indemnitee’s rights to discovery may be lesser or narrower in arbitration, that
there may be fees and costs associated with mediation and/or arbitration that Indemnitee may not
otherwise have, and that Indemnitee is waiving substantial time that Indemnitee might otherwise
have to make a claim, prepare his or her case, or investigate his or her claims. The claims
include claims of any kind relating to Indemnitee’s relationship with the Bank, including claims
relating to compensation, discrimination, any benefits, status as an officer, director or Agent of
the Bank, conflict of interest, or any other claim or dispute relating to or arising out of
Indemnitee’s relationship with the Bank. The underlying Disputes shall be fully and finally
resolved through arbitration, including any right to permanent injunctive relief.

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     17.     Consideration.

               Part of the consideration the Bank is receiving from Indemnitee to enter into this Agreement
is Indemnitee’s agreement to serve or to continue to serve, as applicable, for the present as an
officer, director or Agent of the Bank. Nothing in this Agreement shall preclude Indemnitee from
resigning as an officer, director or Agent of the Bank nor the Bank, by action of its shareholders,
board of directors, or officers, as the case may be, from terminating Indemnitee’s services as an
officer, director or Agent, as the case may be, with or without cause.

[Remainder of page intentionally left blank]

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

	 	 	 	 	 
	 
	INDEMNITEE:	 	 	
UNITED COMMERCIAL BANK
	 
	 	 	 	By	 
	Signature
 
 	 	 
	 	 	 	Printed Name and Title
	Printed Name
 
 
 
 

	 	 	 
	(address)	 	 	(address)

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EXHIBIT A

UNDERTAKING TO REPAY ADVANCEMENT

OF EXPENSES

     A.     Indemnitee is or has been a director, officer, employee or other agent of UNITED COMMERCIAL
BANK, a California state-chartered bank (the “Bank”); and

     B.     On account of such fact, Indemnitee was or is or is threatened to be made a party to the
proceeding described and designated hereinafter (the “Proceeding”); and

     C.     Indemnitee has requested that the Bank advance to Indemnitee, prior to final disposition of
the Proceeding, Indemnitee’s costs and expenses incurred in defense of the Proceeding; and

     D.     As a condition to advancement of such expenses, the Bank has required that the following
undertaking be made by or on behalf of Indemnitee.

The undersigned herein undertakes as follows:

     1.     This undertaking is executed in accordance with and is subject to Section 317 of the
California General Corporation Law, and that certain Indemnification Agreement between Indemnitee
and the Bank dated                     , and is subject to all provisions, including definitions of
terms, thereof.

     2.     Indemnitee was or is or is threatened to be made a party to the following proceeding:

     Name of Claimant or Title

     of Action or Proceeding:                    
                                    
                                     
                                     
                                     
          

     Court or Agency

     (if any):
                                     
                                     
                                     
                                     
                                     
                  

A-1

 

	 	 	 	 	 
	 	Date Filed Or Presented:	

	 	 
	 	Status:	

	 	 	

	 	 	

	 	 
	 	
Indemnitee’s Counsel:	

	 	 
	 	 
	 	Nature and Amount

	 	of Claim:	

	 	 	

	 	 	

	 	 	

 

     3.     In consideration of the advancement by the Bank of Indemnitee’s expenses incurred or to be
incurred in defense of the Proceeding, the undersigned hereby undertakes to repay all amounts
advanced by the Bank on account of Indemnitee’s defense of the Proceeding, unless it shall be
determined ultimately that Indemnitee is entitled to be indemnified with respect to the Proceeding
in accordance with Section 317 of the California General Corporation Law.

	 	 	 	 
	 
Date:	 	 	 
	 	 	 	(Signature of Indemnitee)
	 
 
	 	 	 	 
	 	 	 	(Printed Name of Indemnitee)

A-2exv10w20

 

EXHIBIT 10.20

CONFIDENTIAL TREATMENT REQUESTED

Design Services Agreement

between

Sony Computer Entertainment Inc.

and

SONY Corporation

and

Transmeta Corporation

March 29, 2005

***  Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

			
	 	 	 
	Transmeta and SONY Confidential
	 	FINAL EXECUTION COPY

 

 

Sony Computer Entertainment Inc. and SONY Corporation and Transmeta Corporation

DESIGN SERVICES AGREEMENT

          This Design Services Agreement (“Agreement”) is made and entered into as of March 29, 2005
(the “Effective Date”), by and between Transmeta Corporation. a Delaware U.S.A. corporation with
offices at 3990 Freedom Circle, Santa Clara, CA 95054 (“Transmeta”), and Sony Computer
Entertainment Inc., a Japanese Corporation with office at 2-6-21 Minamiaoyama, Minato-ku, Tokyo
107-0062, Japan (“SCEI”) and Sony Corporation, a Japanese corporation with offices at 6-7-35
Kitashinagawa, Shinagawa-ku, Tokyo 141-0001, Japan (“Sony Co”) (collectively, “SONY”).

          Transmeta and SONY desire to have Transmeta perform certain design services for SONY, subject
to and in accordance with the terms and conditions of this Agreement.

        NOW, THEREFORE, the parties agree as follows:

     1. DEFINITIONS.

          1.1 ““Alliance Manager” means a single alliance manager responsible for general coordination
between the parties under this Agreement.

          1.2 “Background Technology” of a party means any technologies, products, processes,
techniques, designs, specifications, and materials developed by the party independent of this
Agreement.

          1.3 “Confidential Disclosure Agreement” means the Confidential Disclosure Agreement executed
by and between International Business Machines Corporation (“IBM”), SCEI, Toshiba Corporation
(“Toshiba”) and Transmeta as of * * *.

          1.4 “Confidential Information” means any business or technical information of Transmeta or
SONY that is designated by a party as “confidential” or “proprietary” at the time of disclosure or
due to its nature or under the circumstances of its disclosure the party receiving such information
knows or has reason to know should be treated as confidential or proprietary. Notwithstanding the
foregoing, the parties agree that SONY-owned Transmeta Project-related Inventions and Jointly-owned
Projected-related Inventions shall be deemed SONY’s Confidential Information and both parties’
Confidential Information, respectively. Confidential Information does not include information
that: (i) is or becomes generally known to the public through no fault or breach of this Agreement
by the receiving party; (ii) is rightfully known by the receiving party at the time of disclosure
without an obligation of confidentiality; (iii) is independently developed by the receiving party
without use of the disclosing party’s Confidential Information; (iv) is rightfully received by the
receiving party from a third party without restriction on use or disclosure; or (v) is disclosed
with the prior written approval of the disclosing party.

          1.5 “Executive Relationship Manager” means a single executive relationship manager responsible
for the health of the overall relationship between the parties under this Agreement.

***  Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

	 	 	 	 	 
	Transmeta and SONY Confidential
	 	2
	 	3/29/2005  2:27 PM

 

 

          1.6 “Intellectual Property Rights” means Patent Rights, copyright rights, trade secret rights,
know-how and any other intellectual property rights.

          1.7 “Jointly-owned Project-related Inventions” means (a) any inventions, improvements or
innovations created jointly by Transmeta and SONY pursuant to any Project Agreement or any work
related thereto, and (b) any Transmeta Project-related Inventions that are deemed Jointly-owned
Project-related Inventions under Section 4.2.

          1.8 “LongRun2 Agreement” means that certain LongRun2 Technology License Agreement dated
January 20, 2005 between Transmeta and Sony Co.

          1.9 “Patent Rights” means all worldwide patent rights (including rights in patent
applications).

          1.10 “Project Agreement” means a written agreement that describes the specific Services,
including the expected number of authorized Transmeta Personnel.

          1.11 “Project Manager” means the primary point of contact under this Agreement.

          1.12 “Services” means the design and/or engineering services to be performed by Transmeta for
SONY in accordance with the terms and conditions of this Agreement

          1.13 “SONY Material” means any data, information and any other materials required by Transmeta
to perform the Services, including, but not limited to, any data, information or materials
specifically identified in the Project Agreement.

          1.14 “STI Information” means (i) any “Confidential Information” defined in and disclosed to
Transmeta by SCEI, or by IBM or Toshiba on behalf of SCEI, under the Confidential Disclosure
Agreement, and/or (ii) any SONY Confidential Information designated as “STI Information” by SONY at
disclosure.

          1.15 “Transmeta Personnel” means Transmeta employees, contractors and/or consultants
authorized to perform Services pursuant to the Project Agreements.

          1.16 “Transmeta Project-related Inventions” means any inventions, improvements or innovations
created by Transmeta (working alone or with a third party) in connection with performing Services
pursuant to any Project Agreement or any work related thereto.

     2. SERVICES.

          2.1 Project Agreements. From time to time, SONY and Transmeta will execute one or
more Project Agreements. Each Project Agreement will expressly refer to this Agreement, will form
a part of this Agreement, and will be subject to the terms and conditions contained herein.

          2.2 Performance of Services. Transmeta will perform the Services in accordance with
the terms and conditions of this Agreement and of each Project Agreement.

***  Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

	 	 	 	 	 
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          2.3 Project Meetings. During the term of this Agreement, SONY and Transmeta are
expected to schedule and conduct an executive management committee meeting on at least a
quarterly basis, a part of whose purpose is i) to review the progress of Services under
existing Project Agreements, ii) to plan Project Agreements for future Services to be performed
pursuant to this Agreement, iii) to review staffing requirements and associated costs, including
the advance payments and monthly fees payable by SONY to Transmeta pursuant to Section 3 and any
adjustments thereto, and iv) to discuss other technical and business matters relevant to the
successful performance and completion of Services. It is also expected that technical engineering
related meetings will be scheduled as frequently as is mutually determined necessary between the
parties.

          2.4 Changes and Adjustments. As a result of meetings and discussions between the
parties, including, without limitation, meetings conducted by the parties pursuant to Section 2.3,
the parties may desire to make changes to existing Project Agreements including, without
limitation, changes to the number of Transmeta Personnel, the scope or specification of Services
then being performed under such Project Agreements. Changes to the scope or specification of such
Services may also require changes to the schedule for the performance of Services or adjustments to
the fees payable for such Services or may require Transmeta to hire or engage additional Transmeta
Personnel, all as may be appropriately determined between the parties. Any proposed changes to a
Project Agreement will be effective only if such changes are confirmed in writing and signed by the
Executive Relationship Manager and relevant Project Manager(s) of each party. Notwithstanding the
foregoing provisions, if SONY provides Transmeta with * * * prior written notice and discusses with
Transmeta new projection of the headcount of Transmeta Personnel, SONY may reduce headcount of the
Transmeta Personnel set forth in any Project Agreement on its discretion.

          2.5 SONY Responsibilities. In connection with each Project Agreement, SONY will
provide qualified personnel who are capable of performing SONY’s portion of duties and tasks under
the Project Agreement, and such other duties and tasks as may be reasonably required to permit
Transmeta to perform the Services. SONY will also make available to Transmeta SONY Materials on
SONY’s reasonable discretion. SONY will be responsible for ensuring that all such SONY Materials
are accurate and complete.

          2.6 Designated Contacts. Each party will designate an Executive Relationship Manager,
Alliance Manager and Project Manager. One person may be a Project Manger for multiple Project
Agreements. A party may designate a new Executive Relationship Manager, Alliance Manager or
Project Manager by written notice to the other party. The following persons are the Executive
Relationship Manager, Alliance Manager and Project Manager of each party as of the Effective Date:

	 	 	 	 	 	 	 
	Executive Relationship Managers:	 	 	 	 
	

	 	Company: Sony Corporation
	 	 	 	Company: Transmeta Corporation
	

	 	Name: * * *
	 	 	 	Name: David R. Ditzel
	

	 	Phone: * * *
	 	 	 	Phone: * * *
	

	 	Email: * * *
	 	 	 	Email: * * *
	 
	 	 	 	 	 	 
	 	 	Company: Sony Computer Entertainment Inc.
	

	 	Name: * * *	 	 	 	 

***  Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

	 	 	 	 	 
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	 	4
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	 	Phone: * * *	 	 	 	 
	

	 	Email: * * *	 	 	 	 
	 
	 	 	 	 	 	 
	Alliance Mangers :	 	 	 	 
	

	 	Company: Sony Corporation
	 	 	 	Company: Transmeta Corporation
	

	 	Name: * * *
	 	 	 	Name: John Heinlein
	

	 	Phone: * * *
	 	 	 	Phone: * * *
	

	 	Email: * * *
	 	 	 	Email: * * *
	 
	 	 	 	 	 	 
	 	 	Company: Sony Computer Entertainment Inc.
	

	 	Name: * * *	 	 	 	 
	

	 	Phone: * * *	 	 	 	 
	

	 	Email: * * *	 	 	 	 

          2.7 Relationship of the Parties. Transmeta is performing the Services as an
independent contractor, is not an employee, agent, joint venturer or partner of SONY, and has no
authority to bind SONY by contract or otherwise. Transmeta acknowledges and agrees that its
personnel are not eligible for or entitled to receive any compensation, benefits or other incidents
of employment that SONY makes available to its employees. Transmeta is solely responsible for all
taxes, expenses, withholdings, and other similar statutory obligations arising out of the
relationship between Transmeta and its personnel and the performance of Services by such personnel.

     3. PAYMENT.

          3.1 Fees and Expenses. For Transmeta’s performance of Services, SONY will pay
Transmeta fees calculated in accordance with the terms set forth in each Project Agreement. If not
otherwise specified in a Project Agreement, the * * * fees payable to Transmeta will be * * *. In
addition, SONY will reimburse Transmeta for all related reasonable and customary travel, lodging,
facilities, utilities, telecommunications, copying and printing, office supplies, computing
equipment, CAD tools and other related business expenses incurred by Transmeta or its personnel to
the extent incurred in connection with the performance of Services. The parties expressly
acknowledge and agree that the flight expense to be reimbursed by SONY will be limited to the
economy-class fee. Transmeta shall provide SONY from time to time with written estimation for such
expenses to be incurred and obtain SONY’s prior approval. In the event that actual expenses are
expected to exceed * * * beyond Sony’s approved estimation, Transmeta shall contact SONY for
further approval. At SONY’s request, Transmeta will provide SONY with receipts and other
documentation for all such expenses.

     3.2 Payment Terms. By April 8, 2005 SONY will pay Transmeta an advance payment equal
to the fees payable for * * * of Services under the initial Project Agreements as of the Effective
Date. On approximately the 15th day of each month thereafter, Transmeta will invoice
SONY for an additional month of Services as specified in the Project Agreements, as well as for any
applicable expenses for which Transmeta is entitled to reimbursement based on the Services
performed by Transmeta during the preceding month. If Transmeta was unable to provide the total
headcount of Transmeta Personnel for Services performed during a preceding month, as specified in
the Project Agreements, then Transmeta will make a corresponding adjustment correction in each next
monthly invoice. The parties expressly acknowledge and agree that, if Transmeta

***  Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

	 	 	 	 	 
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provided the
Transmeta Personnel beyond the headcount set forth in the Project Agreement for Services performed
during a preceding month, SONY shall not be required to pay the monthly fees
for the Transmeta Personnel provided so beyond such headcount. SONY will pay Transmeta’s
Invoice no later than * * * after SONY’s receipt thereof. Any invoice not paid within such * * *
period will accrue interest at the rate of * * *.

          3.3 Taxes. All fees, expenses and other amounts payable to Transmeta hereunder do not
include any sales, use, value added or other applicable taxes, tariffs or duties, payment of which
will be the sole responsibility of SONY (excluding any taxes based on Transmeta’s net income).
SONY will promptly reimburse Transmeta for any such amounts that Transmeta pays on SONY’s behalf.

     4. OWNERSHIP AND LICENSES. Except as otherwise expressly set forth in a Project Agreement,
ownership of all rights, title and interest in and to all technologies, products, processes,
techniques, designs, specifications, and materials of any kind used or developed by Transmeta
and/or SONY pursuant to this Agreement, including Intellectual Property Rights therein, will be
solely as set forth in this Section 4.

          4.1 Background Technology. As between the parties, each party exclusively owns all
rights, title and interest in and to any Background Technology, including all Intellectual Property
Rights therein. Except as expressly provided in this Agreement or Project Agreement, nothing in
this Agreement will be deemed to grant to either party any rights or licenses of any kind in or to
any Background Technology of the other party, and if the party (“requesting party”) wishes to
obtain such rights or licenses from the other party, such other party will discuss with the
requesting party in good faith the possibility to grant such rights or license to the requesting
party.

          4.2 Transmeta Project-related Inventions. If either party wishes to obtain Patent
Rights for a Transmeta Project-related Invention, then SONY will make a good faith effort to
determine whether the Transmeta Project-related Invention may be based on STI Information. If SONY
determines that the Transmeta Project-related Invention may be based on STI Information, and SONY,
IBM and Toshiba confirm before filing of the corresponding patent application that the Transmeta
Project-related Invention is based on STI Information, then Patent Rights for such Transmeta
Project-related Invention shall be transferred to SONY without charge and be solely owned by SONY.
All other Transmeta Project-related Inventions shall be deemed Jointly-owned Project-related
Inventions and ownership shall be determined by Section 4.3.

          4.3 Jointly-owned Project-related Inventions. Subject to SONY’s rights in any
underlying SONY Background Technology, and Transmeta’s rights in any underlying Transmeta
Background Technology, SONY and Transmeta will jointly own all Intellectual Property Rights in and
to Jointly-owned Project-related Inventions. Each of the parties hereby irrevocably transfers and
assigns to the other party a joint ownership interest in all right, title, and interest that the
transferring party may have in and to the Jointly-owned Project-related Inventions and all
Intellectual Property Rights therein. Neither party will have any obligation to the other party to
account for or to share any royalties, fees or other benefits derived from its use, licenses, sales
or other disposition or exploitation of any Jointly-owned Projected-related Inventions. The
parties will reasonably cooperate in obtaining and maintaining Patent Rights with respect to
Jointly-owned Project-related Inventions and, unless otherwise agreed to by the parties, will share
equally any associated costs and expenses. Either party (“Notifying Party”) may voluntarily give
up control

***  Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

	 	 	 	 	 
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over obtaining, withdrawing and maintaining any such Patent Rights upon written notice
to the other party. In such case, from the date of the written notice going forward, the other
party shall
have full control over obtaining, withdrawing and maintaining any such Patent Rights and shall
pay for all associated costs and expenses to be borne after the other party’s receipt of such
notice but (i) the Patent Rights shall continue to be jointly owned and (ii) the Notifying Party
shall cooperate with the other party in respect of the procedure which is required for the other
party’s obtaining, withdrawing and maintaining the Patent Rights.

          4.4 SONY’s Right to Terminate the License. Notwithstanding Section 4.3, in the event
that any third party obtains from Transmeta a license under jointly owned Patent Rights that are
based on the Jointly-owned Project-related Inventions, and the third party then asserts that SONY’s
products, devices, apparatus, services or systems which implement such jointly owned Patent Rights
infringe the third party’s patent rights, SONY has the right to terminate such license under the
jointly owned Patent Rights granted by Transmeta to such third party. Transmeta shall notify in
writing such SONY’s right to terminate the license to any third parties to which Transmeta grants a
license under such Patent Right.

          4.5 Transmeta Background Technology. If any Transmeta Background Technology which
Transmeta intends to incorporate into deliverables is specified in a Project Agreement (including
in any changes made to a Project Agreement), Transmeta will in good faith discuss with SONY the
possibility to grant such rights or license, including any possible royalty, as necessary to
incorporate such Transmeta Background Technology into the deliverables. If any Transmeta
Background Technology is not so specified in a Project Agreement, then Transmeta hereby grants to
SONY a non-exclusive, transferable, royalty-free right and license, with the right to sublicense,
under Transmeta Background Technology and Intellectual Property Rights therein to make, have made
(including the right to practice any method or process in making), use, sell, offer for sale,
import and/or otherwise dispose of or exploit the incorporated Transmeta Background Technology but
only when incorporated as part of the deliverable. For the avoidance of doubt, the foregoing will
not be deemed to confer on SONY by implication, estoppel or otherwise, any license or other right
under Transmeta Background Technology and Intellectual Property Rights for any other purpose. This
Section 4.5 shall not apply to any Transmeta Background Technology that is licensed to SONY under
the LongRun2 Agreement.

          4.6 Bankruptcy Treatment. The parties acknowledge that the technology and
Intellectual Property Rights licensed hereunder are “intellectual property” as defined in Section
101(56) of the U.S. Bankruptcy Code (the “Code”), that this Agreement is governed by Section 365(n)
of the Code, and that SONY will have the right to exercise all rights provided by Section 365(n) of
the Code with respect to such technology and Intellectual Property Rights. Without limiting the
foregoing, the parties agree that in the event that any bankruptcy proceeding is filed by or
against Transmeta, and the bankruptcy trustee or debtor-in-possession rejects this Agreement, SONY
will have the right to exercise all rights provided by Section 365(n) of the Code, including the
right to retain its license rights to such technology and Intellectual Property Rights under this
Agreement and any agreement ancillary to this Agreement, subject to SONY’s ongoing compliance with
this Agreement.

     4.7 No Conflict. Notwithstanding anything to the contrary in this Agreement, the
licenses to SONY in this Agreement are not intended to grant licenses to any technology or
Intellectual Property Rights that are licensed under the LongRun2 Agreement. To the extent the

***  Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

	 	 	 	 	 
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same technology or Intellectual Property Rights are licensed both under this Agreement and the
LongRun2 Agreement, the license scope in this Agreement shall be reduced to exclude such
technology or Intellectual Property Rights. The relevant license shall be granted only under
the LongRun2 Agreement and royalties, if any, shall be calculated according to the LongRun2
Agreement.

     5. CONFIDENTIAL INFORMATION.

          5.1 Use and Disclosure Restrictions. Each party will not use the other party’s
Confidential Information except as necessary for the performance or enforcement of this Agreement
and will not disclose such Confidential Information to any third party except to those of its
employees and subcontractors who have a bona fide need to know such Confidential Information for
the performance or enforcement of this Agreement; provided that each such employee and
subcontractor is bound by a written agreement that contains use and nondisclosure restrictions
consistent with the terms set fort in this Section (notwithstanding the foregoing, if such
subcontractor is the party’s subsidiary, such subsidiary is not required to execute written-form
agreement). Each party will employ all reasonable steps to protect the other party’s Confidential
Information from unauthorized use or disclosure, including, but not limited to, all steps that it
takes to protect its own information of like importance. The foregoing obligations will not
restrict either party from disclosing the other party’s Confidential Information: (i) pursuant to
the order or requirement of a court, administrative agency, or other governmental body, provided
that the party required to make such a disclosure gives reasonable notice to the other party to
contest such order or requirement; (ii) to its legal or financial advisors; and (iii) as required
under applicable securities regulations.

          5.2 IBM and Toshiba. Notwithstanding Section 5.1, SONY may disclose Confidential
Information disclosed by Transmeta to SONY in the course of performing Services (but exclusive of
Transmeta Background Technology not incorporated into deliverables specified in a Project
Agreement, Confidential Information provided to SONY under the LongRun2 Agreement, and Confidential
Information not related to a Project Agreement), provided that Sony shall cause IBM and/or Toshiba
to be bound by the confidentiality obligation to the same extent as they are bound under the
Confidential Disclosure Agreement. For the avoidance of doubt, the parties acknowledge and agree
that in no event will this Agreement be deemed to amend or release the parties from any obligation
under any other agreement, including without limitation the Confidential Disclosure Agreement and
the LongRun2 Agreement. Confidential Information provided to SONY under the LongRun2 Agreement may
not be disclosed to IBM and/or Toshiba, respectively, until each of them has entered into a similar
license agreement with Transmeta.

     6. WARRANTY.

          6.1 Services Warranty. Transmeta warrants that the Services will be performed in a
good and workmanlike manner consistent with applicable industry standards. This warranty will be
in effect for * * *. As SONY’s sole and exclusive remedy and Transmeta’s entire liability for any
breach of the foregoing warranty, Transmeta will, at its sole option and expense, promptly
re-perform any Services that fail to meet this limited warranty or refund to SONY the fees paid for
the non-conforming Services. Transmeta further warrants that in the course of performance of
Services, Transmeta shall not misappropriate third parties’ confidential information and shall not
infringe third parties’ copyright.

***  Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

	 	 	 	 	 
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          6.2 Warranty Disclaimers. THE EXPRESS WARRANTIES IN SECTION 6.1 ARE IN LIEU OF, AND
TRANSMETA DISCLAIMS, ALL OTHER WARRANTIES, REPRESENTATIONS OR CONDITIONS, EXPRESS OR IMPLIED,
INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

     7. TERM AND TERMINATION.

          7.1 Term. This Agreement will commence on the Effective Date and, unless terminated
earlier in accordance with the terms of this Agreement, will remain in force and effect for two (2)
years, provided that this Agreement shall continue until completion of the Services performed by
Transmeta pursuant to any Project Agreement executed before expiration of this Agreement, in
respect of such Project Agreement. The parties anticipate that they will enter into Project
Agreements for a minimum of twenty-four (24) months from the Effective Date.

          7.2 Termination. Each party will have the right to terminate this Agreement or any
Project Agreement if the other party breaches any material term of this Agreement or Project
Agreement and fails to cure such breach within * * * after receipt of written notice thereof.

          7.3 Effect of Termination. Upon the expiration or termination of this Agreement or of
any Project Agreement: (i) Transmeta will promptly return to SONY all SONY Materials; (ii) each
party will promptly destroy or return to the other party all Confidential Information of the other
party in its possession or control; and (iii) SONY will, within * * * after receipt of Transmeta’s
invoice, pay all accrued and unpaid fees and expenses.

          7.4 Survival. The rights and obligations of the parties contained in Sections 3, 4,
5, 7.3, 7.4, 8, 9, 10 and 11 will survive the expiration or termination of this Agreement or any
Project Agreement.

     8. INDEMNIFICATION.

          8.1 General Indemnity. Each party (an “indemnifying party”) will defend (or settle),
at its expense, any action brought against the other party (an “indemnified party”) by a third
party to the extent that it is based upon a claim for bodily injury, personal injury (including
death) to any person, or damage to tangible property resulting from the negligent acts or willful
misconduct of the indemnifying party or its personnel hereunder, and will pay any costs, damages
and reasonable attorneys’ fees attributable to such claim that are awarded in final judgment
against the indemnified party (or are payable in settlement by the indemnified party); provided
that the indemnified party: (i) promptly notifies the indemnifying party in writing of the claim;
(ii) grants the indemnifying party sole control of the defense and settlement of the claim; and
(iii) provides the indemnifying party, at the indemnifying party’s expense, with all assistance,
information and authority reasonably required for the defense and settlement of the claim. The
indemnifying party will have no obligation under this Section to the extent any claim is based on
the negligent acts or willful misconduct of the indemnified party or its employees or
subcontractors.

          8.2 IP Infringement Assistance. If a third party alleges that SONY’s use
or implementation of Transmeta Project-related Inventions infringes such third party’s
Intellectual Property Rights, then at SONY’s request and at SONY’s expense, Transmeta
will provide SONY

*** Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as *
* *. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

					
	 	 	 	 	 
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with all assistance, information and authority reasonably required for
the defense and settlement of the claim.

          8.3 IP Infringement Indemnity. SONY will defend (or settle), at its expense, any
action brought against Transmeta by a third party to the extent that it is based upon a claim that
Transmeta’s use or implementation of the SONY Material under this Agreement, provision of the
Services for SONY, or compliance with SONY’s directions or specifications infringes such third
party’s Intellectual Property Rights, and will pay any costs, damages and reasonable attorneys’
fees attributable to such claim that are awarded in final judgment against Transmeta (or are
payable in settlement by Transmeta); provided that Transmeta: (i) promptly notifies SONY in writing
of the claim; (ii) grants SONY sole control of the defense and settlement of the claim; and (iii)
provides SONY, at SONY’s expense, with all assistance, information and authority reasonably
required for the defense and settlement of the claim.

     9. LIMITATION OF LIABILITY. IN NO EVENT WILL EACH PARTY BE LIABLE TO THE OTHER PARTY OR TO
ANY THIRD PARTY FOR ANY SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF
USE, DATA, BUSINESS OR PROFITS) OR FOR COSTS OF PROCURING SUBSTITUTE SERVICES, PRODUCTS OR
DELIVERABLES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE SERVICES OR ANY WORK
PRODUCT PROVIDED BY TRANSMETA, HOWEVER CAUSED AND REGARDLESS OF THE THEORY OF LIABILITY, EVEN IF
SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EXCEPT FOR SONY’S OBLIGATION TO
PAY FEES UNDER SECTION 3 OR SONY’S OBLIGATIONS UNDER SECTION 8.3, EACH PARTY’S TOTAL LIABILITY TO
THE OTHER PARTY, FROM ALL CAUSES OF ACTION AND ALL THEORIES OF LIABILITY, WILL BE LIMITED TO AND
WILL NOT EXCEED * * *.

     10. NON-SOLICITATION. During the term of this Agreement and for a period of twelve (12)
months thereafter, SONY will not actively recruit or otherwise actively solicit for employment any
current Transmeta employees or subcontractors who participated in the performance of Services
without Transmeta’s express prior written approval.

     11. GENERAL PROVISIONS.

          11.1 Assignment. Transmeta may not assign this Agreement without SONY’s prior written
consent, except that Transmeta may assign this Agreement, without SONY’s consent, to an affiliate
or to a successor or acquirer, as the case may be, in connection with a merger or acquisition, or
the sale of all or substantially all of Transmeta’s assets or the sale of that portion of
Transmeta’s business to which this Agreement relates. Subject to the foregoing, this Agreement
will bind and inure to the benefit of the parties’ permitted successors and assigns.

          11.2 Governing Law. This Agreement will be governed and construed in accordance with
the laws of the State of California, excluding its body of law controlling conflicts of law.

          11.3 Notices. All notices required or permitted under this Agreement will be in
writing and delivered in person, by confirmed facsimile transmission, by overnight delivery
service, by confirmed electronic mail (email), or by registered or certified mail, postage prepaid
with return

*** Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as *
* *. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

					
	 	 	 	 	 
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receipt requested, and in each instance will be deemed given upon receipt. All
communications will be sent to the addresses set forth above or to such other address as may be
specified by either party to the other party in accordance with this Section.

          11.4 Waiver. The waiver of any breach or default of any provision of this Agreement
will not constitute a waiver of any other right hereunder or of any subsequent breach or default.

          11.5 Entire Agreement. This Agreement, including all Project Agreements, constitutes
the entire and exclusive agreement of the parties regarding its subject matter and supersedes any
and all prior or contemporaneous agreements, communications, and understandings (both written and
oral) regarding such subject matter. In the event of a conflict between the provisions of this
Agreement and the provisions of a Project Agreement, the provisions of the Project Agreement will
govern and control. For the avoidance of doubt, the parties acknowledge and agree that in no event
will this Agreement be deemed to amend the LongRun2 Agreement. This Agreement may only be modified
or any rights under it waived by a written document executed by both parties.

          11.6 Severability. If any provision of this Agreement is held invalid or
unenforceable by a court of competent jurisdiction, the remaining provisions of the Agreement will
remain in full force and effect, and the provision affected will be construed so as to be
enforceable to the maximum extent permissible by law.

          11.7 Force Majeure. Neither party will be responsible for any failure or delay in its
performance under this Agreement (except for the payment of money) due to causes beyond its
reasonable control, including, but not limited to, labor disputes, strikes, lockouts, shortages of
or inability to obtain labor, energy, raw materials or supplies, war, acts of terror, riot, acts of
God or governmental action.

          11.8 Compliance with Laws. Each party shall comply with all laws applicable and shall
procure, at its own expense, all permits and licenses required in connection with the performance
of its obligations under this Agreement.

          11.9 Counterparts. This Agreement may be executed in counterparts, each of which will
be deemed an original, but all of which together will constitute one and the same instrument.

*** Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as *
* *. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

					
	 	 	 	 	 
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Effective
Date by their duly authorized representatives.

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	Transmeta Corporation	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	By:
	 	/s/ Arthur L Swift	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	Print Name: Art Swift	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	Title: President and CEO	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	Date: March 31, 2005	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	Sony Computer Entertainment Inc.	 	 	Sony Corporation	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	By:
	 	/s/ Ken Kutaragi	 	 	By:	 	/s/ Kenshi Manabe	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	Print Name: Ken Kutaragi	 	 	Print Name: Kenshi Manabe	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	Title: President & CEO	 	 	Title: Deputy President,	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Semiconductor Solutions Network Company	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 

 * * *
Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

					
	Transmeta and SONY Confidential
	 	12
	 	3/29/2005 2:27 PM

 

 

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 
	 	Date: March 29, 2005
	 	 	Date: March 29, 2005	 
	 	 
	 	 	 	 
	 	 	 	 	 	 

* * *
Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

					
	Transmeta and SONY Confidential
	 	13
	 	3/29/2005 2:27 PM

 

 

EXHIBIT A

Project Agreement Number: * * * 

     This Project Agreement (“Project Agreement”) is made and entered as of March 29, 2005 (the
“Project Agreement Effective Date”) pursuant to the terms and conditions of the Design Services
Agreement dated March 29, 2005, by and between Transmeta Corporation, a Delaware U.S.A corporation
with offices at 3990 Freedom Circle, Santa Clara, CA, 95054 (“Transmeta”), and Sony Computer
Entertainment Inc., a Japanese Corporation with office at 2-6-21 Minamiaoyama, Minato-ku, Tokyo
107-0062, Japan (“SCEI”) and SONY Corporation, a Japanese corporation with offices at 6-7-35
Kitashinagawa, Shinagawa-ku, Tokyo 141-0001, Japan (“Sony Co”) (collectively, “SONY”).

Description of Services.

Project Name: * * *

Starting Date: April 1, 2005

Project Headcount: * * *

Project Descriptions: * * *. It is expected that one of the first work products
would be individual Project Agreements for each of the following projects:

1.    * * *.

2.    * * *.

3.    * * *.

4.    * * *.

5.    * * *.

6.    * * *.

7.    * * *.

8.    * * *.

Deliverables: N/A as of the Project Agreement Effective Date

Fees and Expenses: * * *.

Project Schedule: More detailed project schedules will be due * * * with the
development of each Project Agreement, and after SONY specifies the required product
schedule.

Description of SONY Responsibilities: * * *

Payment Responsibility: Sony Co

 

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as ***.
A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

					
	 	 	 	 	 
	Transmeta and SONY Confidential
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Project Manager Contacts.

	 	 	 
	Transmeta Contact:

	 	SONY Contact:
	Name: Andre Kowalczyk

	 	Name: TBD
	Title: Vice-President VLSI

	 	Title:                                                                   
	Telephone Number: * * *

	 	Telephone Number:                                           
	Fax Number: * * *

	 	Fax Number:                                                      
	Email Address: * * *

	 	Email Address:                                                  

IN WITNESS WHEREOF, the parties have caused this Project Agreement to be executed as of the Project
Agreement Effective Date by their duly authorized representatives.

Transmeta Corporation

	 	 	 	 	 
	By:

	 	/s/ Arthur L. Swift	 	 
	 
	 	 	 	 
	Print Name: Art
Swift	 	 
	 
	 	 	 	 
	Title: President and CEO	 	 
	 
	 	 	 	 
	Date: 3/31/05	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Sony Computer Entertainment Inc.	 	 	 	 Sony Corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Terushi Shimizu
	 	 	 	By:
	 	/s/ Terushi Shimizu	 	 
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Print Name: Terushi Shimizu	 	 	 	Print Name: Terushi Shimizu	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title: Deputy Vice President,	 	 	 	Title: CFO,	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	          Semiconductor Business Division	 	 	 	          Semiconductor Solutions Network Company
	 
	 	 	 	 	 	 	 	 	 	 
	Date: March 29, 2005	 	 	 	Date: March 29, 2005	 	 

* * *
Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as *
* *. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

					
	Transmeta and SONY Confidential
	 	15
	 	3/29/2005 2:27 PM

 

EXHIBIT B

Project Agreement Number: * * * 

     This Project Agreement (“Project Agreement”) is made and entered as of March 29, 2005 (the
"Project Agreement Effective Date") pursuant to the terms and conditions of the Design Services
Agreement dated March 29, 2005, by and between Transmeta Corporation, a Delaware U.S.A corporation
with offices at 3990 Freedom Circle, Santa Clara, CA, 95054 (“Transmeta”), and Sony Computer
Entertainment Inc., a Japanese Corporation with office at 2-6-21 Minamiaoyama, Minato-ku, Tokyo
107-0062, Japan (“SCEI”) and SONY Corporation, a Japanese corporation with offices at 6-7-35
Kitashinagawa, Shinagawa-ku, Tokyo 141-0001, Japan (“Sony Co”) (collectively, “SONY”).

	1.  	Description of Services.
	 
	   	Project Name: * * *
	 
	   	Starting Date: April 1, 2005
	 
	   	Project Headcount: * * *
	 
	   	Project Description: * * *. It is expected that one of the first work products
would be individual Project Agreements for each of the following projects:

	 	1.  	* * *.
	 
	 	2.  	* * *.
	 
	 	3.  	* * *.
	 
	 	4.  	* * *.
	 
	 	5.  	* * *.
	 
	 	6.  	* * *.
	 
	 	7.  	* * *.
	 
	 	8.  	* * *.
	 
	 	   	Deliverables: N/A as of the Project Agreement Effective Date
	 
	 	   	Description of Transmeta and SONY Responsibilities: * * *
	 
	 	   	Payment Responsibility: Sony Co

***  Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	Transmeta and SONY Confidential
	 	16
	 	3/29/2005  2:27 PM

 

 

	4.  	Project Manager Contacts.

	 	 	 	 	 	 	 
	Transmeta Contact:

	 	 	 	SONY Contact:	 	 
	Name: Tien-Min Chen

	 	 	 	Name: TBD	 	 
	Title: * * *

	 	 	 	Title:	 	 
	

	 	 	 	 	 	 
	Telephone Number: * * *

	 	 	 	Telephone Number:	 	 
	

	 	 	 	 	 	 
	Fax Number: * * *

	 	 	 	Fax Number:	 	 
	

	 	 	 	 	 	 
	Email Address: * * *

	 	 	 	Email Address:	 	 
	

	 	 	 	 	 	 

IN WITNESS WHEREOF, the parties have caused this Project Agreement to be executed as of the Project
Agreement Effective Date by their duly authorized representatives.

Transmeta Corporation

	 	 	 	 	 
	By:

	 	/s/ Arthur L. Swift	 	 
	 

	 	 
	 	 

Print Name: Art Swift

Title: President and CEO

Date: 3/31/05

	 	 	 	 	 	 	 	 	 
	Sony Computer Entertainment Inc.	 	 	 	Sony Corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Terushi Shimizu
	 	 	 	By:
	 	/s/ Terushi Shimizu
	

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Print Name: Terushi Shimizu	 	 	 	Print Name: Terushi Shimizu
	 
	 	 	 	 	 	 	 	 
	Title: Deputy Vice President,	 	 	 	Title: CFO,
	 
	 	 	 	 	 	 	 	 
	     Semiconductor Business Division	 	 	 	     Semiconductor Solutions Network Company
	 
	 	 	 	 	 	 	 	 
	Date: March 29, 2005	 	 	 	Date: March 29, 2005

***  Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	Transmeta and SONY Confidential
	 	17
	 	3/29/2005  2:27 PM

 

 

EXHIBIT C

Project Agreement Number: * * * 

     This Project Agreement (“Project Agreement”) is made and entered as of March 29, 2005 (the
"Project Agreement Effective Date") pursuant to the terms and conditions of the Design Services
Agreement dated March 29, 2005, by and between Transmeta Corporation, a Delaware U.S.A corporation
with offices at 3990 Freedom Circle, Santa Clara, CA, 95054 (“Transmeta”), and Sony Computer
Entertainment Inc., a Japanese Corporation with office at 2-6-21 Minamiaoyama, Minato-ku, Tokyo
107-0062, Japan (“SCEI”) and SONY Corporation, a Japanese corporation with offices at 6-7-35
Kitashinagawa, Shinagawa-ku, Tokyo 141-0001, Japan (“Sony Co”) (collectively, “SONY”).

Description of Services.

Project Name: * * *

Starting Date: April 1, 2005

Project Headcount: * * *

Project Descriptions: * * *. It is expected that one of the first work products
would be individual Project Agreements for each of the following projects:

1.      * * *.

2.      * * *.

3.      * * *.

4.      * * *.

Deliverables: N/A as of the Project Agreement Effective Date

Project Schedule: More detailed project schedules will be due * * * with the development
of each Project Agreement, and after SONY specifies the required product schedule.

Changes to Intellectual Property Rights:

(1) Transmeta agrees that SONY will own all copyright rights in and to all final deliverables
created and delivered by Transmeta to SONY pursuant to this Project Agreement, subject to and
excluding Transmeta’s rights in any underlying Transmeta Background Technology, which shall be
treated in accordance with Section 4.5 of the Design Services Agreement. Transmeta irrevocably
assigns and transfers to SONY all of Transmeta’s copyright rights in and to all such final
deliverables.

     Transmeta agrees that SONY will own all Patent Rights in any Transmeta Project-related
Inventions and Jointly-owned Project-related Inventions or any elements thereof created pursuant to
this Project Agreement (subject to and excluding Transmeta’s rights in any underlying Transmeta
Background Technology which shall be treated in accordance with Section 4.5 of the Design Services
Agreement). Transmeta irrevocably assigns and transfers to SONY all of

***  Confidential
treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	Transmeta and SONY Confidential
	 	18
	 	3/29/2005  2:27 PM

 

 

Transmeta’s worldwide Patent Rights in such Transmeta Project-related Inventions and Jointly-owned
Project-related Inventions (subject to and excluding Transmeta’s rights in any underlying Transmeta
Background Technology, which shall be treated in accordance with Section 4.5 of the Design Services
Agreement). Transmeta will have no obligation to pay for any costs or expenses associated with
obtaining and maintaining Patent Rights for any Jointly-owned Project-related Inventions created
pursuant to this Project Agreement.

(2) At Transmeta’s request, SONY shall discuss with Transmeta in good faith the possibility of
granting to Transmeta a license under SONY’s Patent Rights in and to certain Transmeta
Project-related Inventions created pursuant to this Project Agreement, provided that, however, SONY
will have no obligation to do so if and to the extent any such Transmeta Project-related Invention
is based on STI Information.

Description of SONY Responsibilities: * * *.

Payment Responsibility: SCEI.

Project Manager Contacts.

	 	 	 	 	 
	Transmeta Contact:

	 	 	 	SONY Contact:
	 
	Name: Patrick Gainer

	 	 	 	Name: * * *
	 
	Title: Vice-President Software

	 	 	 	Title: * * *
	 
	Telephone Number: * * *

	 	 	 	Telephone Number: * * *
	 
	Fax Number: * * *

	 	 	 	Fax Number: * * *
	 
	Email Address: * * *

	 	 	 	Email Address: * * *

IN WITNESS WHEREOF, the parties have caused this Project Agreement to be executed as of the Project
Agreement Effective Date by their duly authorized representatives.

***  Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	Transmeta and SONY Confidential
	 	19
	 	3/29/2005  2:27 PM

 

 

Transmeta Corporation

	 	 	 	 	 
	By:

	 	/s/ Arthur L. Swift
	 	 
	

	 	 	 	 

Print Name: Art Swift

Title: President and CEO

Date: 3/31/05

	 	 	 	 	 	 	 	 	 
	Sony Computer Entertainment Inc.	 	 	 	Sony Corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	     /s/ Masayuki Chatani
	 	 	 	By:
	 	     /s/ Terushi Shimizu
	

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Print Name: Masayuki Chatani

	 	 	 	Print Name: Terushi Shimizu

	 
	 	 	 	 	 	 	 	 
	Title:

	 	Corporate Executive & CTO
	 	 	 	Title:
	 	CFO,
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	     Semiconductor Solutions Network Company
	 
	 	 	 	 	 	 	 	 
	Date:

	 	March 29, 2005
	 	 	 	Date:
	 	March 29, 2005

	* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	Transmeta and SONY Confidential
	 	20
	 	3/29/2005  2:27 PM

 

EXHIBIT D

Project Agreement Number: * * * 

     This Project Agreement (“Project Agreement”) is made and entered as of March 29, 2005 (the
"Project Agreement Effective Date") pursuant to the terms and conditions of the Design Services
Agreement dated March 29, 2005, by and between Transmeta Corporation, a Delaware U.S.A corporation
with offices at 3990 Freedom Circle, Santa Clara, CA, 95054 (“Transmeta”), and Sony Computer
Entertainment Inc., a Japanese Corporation with office at 2-6-21 Minamiaoyama, Minato-ku, Tokyo
107-0062, Japan (“SCEI”) and SONY Corporation, a Japanese corporation with offices at 6-7-35
Kitashinagawa, Shinagawa-ku, Tokyo 141-0001, Japan (“Sony Co”) (collectively, “SONY”).

Description of Services.

Project Name: * * *

Starting Date: April 1, 2005

Project Headcount: * * *

Project Descriptions: * * *. It is expected that one of the first work products
would be individual Project Agreements for each of the following projects, but only to the
extent enabled by the approved Project Headcount:

1. * * *.

2. * * *.

3. * * *.

4. * * *.

5. * * *.

6. * * *.

7. * * *.

Deliverables: N/A as of the Project Agreement Effective Date

Changes to Intellectual Property Rights:

(1) Transmeta agrees that SONY will own all copyright rights in and to all final deliverables
created and delivered by Transmeta to SONY pursuant to this Project Agreement subject to and
excluding Transmeta’s rights in any underlying Transmeta Background Technology, which shall be
treated in accordance with Section 4.5 of the Design Services Agreement. Transmeta irrevocably
assigns and transfers to SONY all of Transmeta’s copyright rights in and to all such final
deliverables.

     Transmeta agrees that SONY will own all Patent Rights in any Transmeta Project-related
Inventions and Jointly-owned Project-related Inventions or any elements thereof created pursuant to
this Project Agreement (subject to and excluding Transmeta’s rights in any underlying Transmeta
Background Technology, which shall be treated in accordance with Section 4.5 of the Design Service
Agreement). Transmeta irrevocably assigns and transfers to SONY all of

***  Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	Transmeta and SONY Confidential
	 	21
	 	3/29/2005  2:27 PM

 

Transmeta’s worldwide Patent Rights in such Transmeta Project-related Inventions and Jointly-owned
Project-related Inventions (subject to and excluding Transmeta’s rights in any underlying Transmeta
Background Technology, which shall be treated in accordance with Section 4.5 of the Design Service
Agreement). Transmeta will have no obligation to pay for any costs or expenses associated with
obtaining and maintaining Patent Rights for any Jointly-owned Project-related Inventions created
pursuant to this Project Agreement.

(2) At Transmeta’s request, SONY shall discuss with Transmeta in good faith the possibility of
granting to Transmeta a license under SONY’s Patent Rights in and to certain Transmeta
Project-related Inventions created pursuant to this Project Agreement, provided that, however, SONY
will have no obligation to do so if and to the extent any such Transmeta Project-related Invention
is based on STI Information.

Project Schedule: More detailed project schedules will be due * * * with the development
of each Project Agreement, and after SONY specifies the required product schedule.

Description of SONY Responsibilities: * * *

Payment Responsibility: SCEI.

Project Manager Contacts.

	 	 	 
	

	 	SONY Contact:
	Transmeta Contact:
	 	 
	 
	Name: Michael Stawowy

	 	Name: * * *
	 
	Title: * * *

	 	Title: * * *
	 
	Telephone Number: * * *

	 	Telephone Number: * * *
	 
	Fax Number: * * *

	 	Fax Number: * * *
	 
	Email Address: * * *

	 	Email Address: * * *

IN WITNESS WHEREOF, the parties have caused this Project Agreement to be executed as of the Project
Agreement Effective Date by their duly authorized representatives.

***  Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	Transmeta and SONY Confidential
	 	22
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Transmeta Corporation

	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Arthur L.Swift
	 	 	 	 
	 	 
	

	 	 	 	 	 	 	 

Print Name: Art Swift

Title: President and CEO

Date: 3/31/05

	 	 	 	 	 	 	 	 	 
	Sony Computer Entertainment Inc.	 	 	 	Sony Corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Toshiyuki Hiroi
	 	 	 	By:
	 	/s/ Terushi Shimizu
	

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Print Name: Toshiyuki Hiroi	 	 	 	Print Name: Terushi Shimizu
	 
	 	 	 	 	 	 	 	 
	Title: Deputy Vice President,	 	 	 	Title: CFO,
	 
	 	 	 	 	 	 	 	 
	

	 	   Semiconductor Business Division
	 	 	 	 	 	Semiconductor Solutions Network Company
	 
	 	 	 	 	 	 	 	 
	Date: March 29, 2005	 	 	 	Date: March 29, 2005

***  Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	Transmeta and SONY Confidential
	 	23
	 	3/29/2005  2:27 PM

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