Document:

ex10-11.htm

    
      

    

    EXHIBIT
      10.11

    SUBSIDIARY
      GUARANTEE

    

    SUBSIDIARY
      GUARANTEE, dated as of November 30, 2007 (this “Guarantee”), made by each
      of the signatories hereto (together with any other entity that may become a
      party hereto as provided herein, the “Guarantors”), in favor of the
      purchasers signatory (the “Purchasers”) to that certain Securities
      Purchase Agreement, dated as of the date hereof, between Visual Management
      Systems, Inc., a Nevada corporation (the “Company”) and the
      Purchasers.

     

    

    W
      I T N E S S E T H:

    

    WHEREAS,
      pursuant to that certain Securities Purchase Agreement, dated as of the date
      hereof, by and between the Company and the Purchasers (the “Purchase
      Agreement”), the Company has agreed to sell and issue to the Purchasers, and
      the Purchasers have agreed to purchase from the Company the Company’s Original Issue Discount 5%
Senior
Secured
Convertible
Debentures,
      due May 30, 2010 (the “Debentures”),
      subject to the terms and conditions set forth therein; and

    

    WHEREAS,
      each Guarantor will directly
      benefit from the extension of credit to the Company represented by the issuance
      of the Debentures; and

    

    NOW,
      THEREFORE, in consideration of the
      premises and to induce the Purchasers to enter into the Purchase Agreement
      and
      to carry out the transactions contemplated thereby, each Guarantor hereby agrees
      with the Purchasers as follows:

    

    1.           Definitions.
      Unless otherwise defined herein, terms defined in the Purchase Agreement and
      used herein shall have the meanings given to them in the Purchase Agreement.
      The
      words “hereof,” “herein,” “hereto” and “hereunder” and words of similar import
      when used in this Guarantee shall refer to this Guarantee as a whole and not
      to
      any particular provision of this Guarantee, and Section and Schedule references
      are to this Guarantee unless otherwise specified. The meanings given to terms
      defined herein shall be equally applicable to both the singular and plural
      forms
      of such terms.  The following terms shall have the following
      meanings:

    

    “Guarantee”
      means this Subsidiary Guarantee, as the same may be amended, supplemented or
      otherwise modified from time to time.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    “Obligations”
      means, in addition to all other costs and expenses of collection incurred by
      Purchasers in enforcing any of such Obligations and/or this Guarantee, all of the liabilities and
      obligations (primary, secondary, direct, contingent, sole, joint or several)
      due
      or to become due, or that are now or may be hereafter contracted or acquired,
      or
      owing to, of any Debtor to the Secured Parties, including, without limitation,
      all obligations under this
      Agreement, the Debentures, this Guarantee
      and any other instruments,
      agreements or other documents executed and/or delivered in connection herewith
      or therewith, in each case, whether now or hereafter existing, voluntary or
      involuntary, direct or indirect, absolute or contingent, liquidated or
      unliquidated, whether or not jointly owed with others, and whether or not from
      time to time decreased or extinguished and later increased, created or incurred,
      and all or any portion of such obligations or liabilities that are paid, to
      the
      extent all or any part of such payment is avoided or recovered directly or
      indirectly from any of the Secured Parties as a preference, fraudulent transfer
      or otherwise as such obligations may be amended, supplemented, converted,
      extended or modified from time to time.  Without limiting the
      generality of the foregoing, the term “Obligations”
      shall include, without limitation: (i)
      principal of, and interest on the Debentures and the loans extended pursuant
      thereto; (ii) any and all other fees, indemnities, costs, obligations and
      liabilities of the Debtors from time to time under or in connection with this
      Agreement, the Debentures, the Guarantee and any other instruments, agreements
      or other documents executed and/or delivered in connection herewith or
      therewith; and (iii) all amounts (including but not limited to post-petition
      interest) in respect of the foregoing that would be payable but for the fact
      that the obligations to pay such amounts are unenforceable or not allowable
      due
      to the existence of a bankruptcy, reorganization or similar proceeding involving
      any Debtor.

    

    2.           Guarantee.

    

    (a)           Guarantee.

    

    
      	
               

            	
              (i)

            	
              The
                Guarantors hereby, jointly and severally, unconditionally and irrevocably,
                guarantee to the Purchasers and their respective successors, indorsees,
                transferees and assigns, the prompt and complete payment and performance
                by the Company when due (whether at the stated maturity, by acceleration
                or otherwise) of the Obligations.

            

    

    

    
      	
               

            	
              (ii)

            	
              Anything
                herein or in any other Transaction Document to the contrary
                notwithstanding, the maximum liability of each Guarantor hereunder
                and
                under the other Transaction Documents shall in no event exceed the
                amount
                which can be guaranteed by such Guarantor under applicable federal
                and
                state laws, including laws relating to the insolvency of debtors,
                fraudulent conveyance or transfer or laws affecting the rights of
                creditors generally (after giving effect to the right of contribution
                established in Section 2(b)).

            

    

    

    
      	
               

            	
              (iii)

            	
              Each
                Guarantor agrees that the Obligations may at any time and from time
                to
                time exceed the amount of the liability of such Guarantor hereunder
                without impairing the guarantee contained in this Section 2 or affecting
                the rights and remedies of the Purchasers
                hereunder.

            

    

     

    
      
        
        

      

      
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              (iv)

            	
              The
                guarantee contained in this Section 2 shall remain in full force
                and
                effect until all the Obligations and the obligations of each Guarantor
                under the guarantee contained in this Section 2 shall have been satisfied
                by payment in full.

            

    

    

    
      	
               

            	
              (v)

            	
              No
                payment made by the Company, any of the Guarantors, any other guarantor
                or
                any other Person or received or collected by the Purchasers from
                the
                Company, any of the Guarantors, any other guarantor or any other
                Person by
                virtue of any action or proceeding or any set-off or appropriation
                or
                application at any time or from time to time in reduction of or in
                payment
                of the Obligations shall be deemed to modify, reduce, release or
                otherwise
                affect the liability of any Guarantor hereunder which shall,
                notwithstanding any such payment (other than any payment made by
                such
                Guarantor in respect of the Obligations or any payment received or
                collected from such Guarantor in respect of the Obligations), remain
                liable for the Obligations up to the maximum liability of such Guarantor
                hereunder until the Obligations are paid in
                full.

            

    

    

    
      	
               

            	
              (vi)

            	
              Notwithstanding
                anything to the contrary in this Agreement, with respect to any defaulted
                non-monetary Obligations the specific performance of which by the
                Guarantors is not reasonably possible (e.g. the issuance of the Company's
                Common Stock), the Guarantors shall only be liable for making the
                Purchasers whole on a monetary basis for the Company's failure to
                perform
                such Obligations in accordance with the Transaction
                Documents.

            

    

    

    (b)           Right
      of Contribution. Each Guarantor hereby agrees that to the extent that a
      Guarantor shall have paid more than its proportionate share of any payment
      made
      hereunder, such Guarantor shall be entitled to seek and receive contribution
      from and against any other Guarantor hereunder which has not paid its
      proportionate share of such payment. Each Guarantor's right of contribution
      shall be subject to the terms and conditions of Section 2(c). The provisions
      of
      this Section 2(b) shall in no respect limit the obligations and liabilities
      of
      any Guarantor to the Purchasers, and each Guarantor shall remain liable to
      the
      Purchasers for the full amount guaranteed by such Guarantor
      hereunder.

    

    
      
        
        

      

      
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    (c)           No
      Subrogation.  Notwithstanding any payment made by any Guarantor
      hereunder or any set-off or application of funds of any Guarantor by the
      Purchasers, no Guarantor shall be entitled to be subrogated to any of the rights
      of the Purchasers against the Company or any other Guarantor or any collateral
      security or guarantee or right of offset held by the Purchasers for the payment
      of the Obligations, nor shall any Guarantor seek or be entitled to seek any
      contribution or reimbursement from the Company or any other Guarantor in respect
      of payments made by such Guarantor hereunder, until all amounts owing to the
      Purchasers by the Company on account of the Obligations are paid in full. If
      any
      amount shall be paid to any Guarantor on account of such subrogation rights
      at
      any time when all of the Obligations shall not have been paid in full, such
      amount shall be held by such Guarantor in trust for the Purchasers, segregated
      from other funds of such Guarantor, and shall, forthwith upon receipt by such
      Guarantor, be turned over to the Purchasers in the exact form received by such
      Guarantor (duly indorsed by such Guarantor to the Purchasers, if required),
      to
      be applied against the Obligations, whether matured or unmatured, in such order
      as the Purchasers may determine.

    

    (d)           Amendments,
      Etc. With Respect to the Obligations. Each Guarantor shall remain obligated
      hereunder notwithstanding that, without any reservation of rights against any
      Guarantor and without notice to or further assent by any Guarantor, any demand
      for payment of any of the Obligations made by the Purchasers may be rescinded
      by
      the Purchasers and any of the Obligations continued, and the Obligations, or
      the
      liability of any other Person upon or for any part thereof, or any collateral
      security or guarantee therefor or right of offset with respect thereto, may,
      from time to time, in whole or in part, be renewed, extended, amended, modified,
      accelerated, compromised, waived, surrendered or released by the Purchasers,
      and
      the Purchase Agreement and the other Transaction Documents and any other
      documents executed and delivered in connection therewith may be amended,
      modified, supplemented or terminated, in whole or in part, as the Purchasers
      may
      deem advisable from time to time, and any collateral security, guarantee or
      right of offset at any time held by the Purchasers for the payment of the
      Obligations may be sold, exchanged, waived, surrendered or released. The
      Purchasers shall have no obligation to protect, secure, perfect or insure any
      Lien at any time held by them as security for the Obligations or for the
      guarantee contained in this Section 2 or any property subject
      thereto.

    

    
      
        
        

      

      
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    (e)           Guarantee
      Absolute and Unconditional. Each Guarantor waives any and all notice of the
      creation, renewal, extension or accrual of any of the Obligations and notice
      of
      or proof of reliance by the Purchasers upon the guarantee contained in this
      Section 2 or acceptance of the guarantee contained in this Section 2; the
      Obligations, and any of them, shall conclusively be deemed to have been created,
      contracted or incurred, or renewed, extended, amended or waived, in reliance
      upon the guarantee contained in this Section 2; and all dealings between the
      Company and any of the Guarantors, on the one hand, and the Purchasers, on
      the
      other hand, likewise shall be conclusively presumed to have been had or
      consummated in reliance upon the guarantee contained in this Section 2. Each
      Guarantor waives to the extent permitted by law diligence, presentment,
      protest, demand for payment and notice of default or nonpayment to or upon
      the
      Company or any of the Guarantors with respect to the Obligations. Each Guarantor
      understands and agrees that the guarantee contained in this Section 2 shall
      be
      construed as a continuing, absolute and unconditional guarantee of payment
      without regard to (a) the validity or enforceability of the Purchase Agreement
      or any other Transaction Document, any of the Obligations or any other
      collateral security therefor or guarantee or right of offset with respect
      thereto at any time or from time to time held by the Purchasers, (b) any
      defense, set-off or counterclaim (other than a defense of payment or performance
      or fraud or misconduct by Purchasers) which may at any time be available to
      or
      be asserted by the Company or any other Person against the Purchasers, or (c)
      any other circumstance whatsoever (with or without notice to or knowledge of
      the
      Company or such Guarantor) which constitutes, or might be construed to
      constitute, an equitable or legal discharge of the Company for the Obligations,
      or of such Guarantor under the guarantee contained in this Section 2, in
      bankruptcy or in any other instance. When making any demand hereunder or
      otherwise pursuing its rights and remedies hereunder against any Guarantor,
      the
      Purchasers may, but shall be under no obligation to, make a similar demand
      on or
      otherwise pursue such rights and remedies as they may have against the Company,
      any other Guarantor or any other Person or against any collateral security
      or
      guarantee for the Obligations or any right of offset with respect thereto,
      and
      any failure by the Purchasers to make any such demand, to pursue such other
      rights or remedies or to collect any payments from the Company, any other
      Guarantor or any other Person or to realize upon any such collateral security
      or
      guarantee or to exercise any such right of offset, or any release of the
      Company, any other Guarantor or any other Person or any such collateral
      security, guarantee or right of offset, shall not relieve any Guarantor of
      any
      obligation or liability hereunder, and shall not impair or affect the rights
      and
      remedies, whether express, implied or available as a matter of law, of the
      Purchasers against any Guarantor. For the purposes hereof, “demand” shall
      include the commencement and continuance of any legal proceedings.

    

    (f)           Reinstatement.
      The guarantee contained in this Section 2 shall continue to be effective, or
      be
      reinstated, as the case may be, if at any time payment, or any part thereof,
      of
      any of the Obligations is rescinded or must otherwise be restored or returned
      by
      the Purchasers upon the insolvency, bankruptcy, dissolution, liquidation or
      reorganization of the Company or any Guarantor, or upon or as a result of the
      appointment of a receiver, intervenor or conservator of, or trustee or similar
      officer for, the Company or any Guarantor or any substantial part of its
      property, or otherwise, all as though such payments had not been
      made.

    

    (g)           Payments.
      Each Guarantor hereby guarantees that payments hereunder will be paid to the
      Purchasers without set-off or counterclaim in U.S. dollars at the address set
      forth or referred to in the Purchase Agreement.

    

    
      
        
        

      

      
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    3.           Representations
      and Warranties. Each Guarantor hereby makes the following representations
      and warranties to Purchasers as of the date hereof:

    

    (a)           Organization
      and Qualification. The Guarantor is a corporation, duly incorporated,
      validly existing and in good standing under the laws of the applicable
      jurisdiction set forth on Schedule 1, with the requisite corporate power and
      authority to own and use its properties and assets and to carry on its business
      as currently conducted. The Guarantor has no subsidiaries other than those
      identified as such on the Disclosure Schedules to the Purchase Agreement. The
      Guarantor is duly qualified to do business and is in good standing as a foreign
      corporation in each jurisdiction in which the nature of the business conducted
      or property owned by it makes such qualification necessary, except where the
      failure to be so qualified or in good standing, as the case may be, could not,
      individually or in the aggregate, (x) adversely affect the legality, validity
      or
      enforceability of any of this Guaranty in any material respect, (y) have a
      material adverse effect on the results of operations, assets, prospects, or
      financial condition of the Guarantor or (z) adversely impair in any material
      respect the Guarantor's ability to perform fully on a timely basis its
      obligations under this Guaranty (a “Material Adverse
      Effect”).

    

    (b)           Authorization;
      Enforcement.  The Guarantor has the requisite corporate power and
      authority to enter into and to consummate the transactions contemplated by
      this
      Guaranty, and otherwise to carry out its obligations hereunder. The execution
      and delivery of this Guaranty by the Guarantor and the consummation by it of
      the
      transactions contemplated hereby have been duly authorized by all requisite
      corporate action on the part of the Guarantor. This Guaranty has been duly
      executed and delivered by the Guarantor and constitutes the valid and binding
      obligation of the Guarantor enforceable against the Guarantor in accordance
      with
      its terms, except as such enforceability may be limited by applicable
      bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
      laws
      relating to, or affecting generally the enforcement of, creditors' rights and
      remedies or by other equitable principles of general application.

    

    (c)           No
      Conflicts. The execution, delivery and performance of this Guaranty by the
      Guarantor and the consummation by the Guarantor of the transactions contemplated
      thereby do not and will not (i) conflict with or violate any provision of its
      Certificate of Incorporation or By-laws or (ii) conflict with, constitute a
      default (or an event which with notice or lapse of time or both would become
      a
      default) under, or give to others any rights of termination, amendment,
      acceleration or cancellation of, any agreement, indenture or instrument to
      which
      the Guarantor is a party, or (iii) result in a violation of any law, rule,
      regulation, order, judgment, injunction, decree or other restriction of any
      court or governmental authority to which the Guarantor is subject (including
      Federal and state securities laws and regulations), or by which any material
      property or asset of the Guarantor is bound or affected, except in the case
      of
      each of clauses (ii) and (iii), such conflicts, defaults, terminations,
      amendments, accelerations, cancellations and violations as could not,
      individually or in the aggregate, have or result in a Material Adverse Effect.
      The business of the Guarantor is not being conducted in violation of any law,
      ordinance or regulation of any governmental authority, except for violations
      which, individually or in the aggregate, do not have a Material Adverse
      Effect.

    

    
      
        
        

      

      
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    (d)           Consents
      and Approvals. The Guarantor is not required to obtain any consent, waiver,
      authorization or order of, or make any filing or registration with, any court
      or
      other federal, state, local, foreign or other governmental authority or other
      person in connection with the execution, delivery and performance by the
      Guarantor of this Guaranty.

    

    (e)           Purchase
      Agreement. The representations and warranties of the Company set forth in
      the Purchase Agreement as they relate to such Guarantor, each of which is hereby
      incorporated herein by reference, are true and correct as of each time such
      representations are deemed to be made pursuant to such Purchase Agreement,
      and
      the Purchasers shall be entitled to rely on each of them as if they were fully
      set forth herein, provided that each reference in each such representation
      and
      warranty to the Company's knowledge shall, for the purposes of this Section
      3,
      be deemed to be a reference to such Guarantor's knowledge.

    

    (f)           Foreign
      Law.  Each Guarantor has consulted with appropriate foreign legal
      counsel with respect to any of the above representations for which non-U.S.
      law
      is applicable. Such foreign counsel have advised each applicable Guarantor
      that
      such counsel knows of no reason why any of the above representations would
      not
      be true and accurate. Such foreign counsel were provided with copies of this
      Subsidiary Guarantee and the Transaction Documents prior to rendering their
      advice.

    

    4.           Covenants.

     

              (a)         Each
      Guarantor covenants and agrees with the Purchasers that, from and after the
      date
      of this Guarantee until the Obligations shall have been paid in full, such
      Guarantor shall take, and/or shall refrain from taking, as the case may be,
      each
      commercially reasonable action that is necessary to be taken or not taken,
      as
      the case may be, so that no Event of Default is caused by the failure to take
      such action or to refrain from taking such action by such
      Guarantor.

     

              (b)         So
      long as any of the Obligations are outstanding, unless Purchasers holding at
      least 75% of the aggregate principal amount of the then outstanding Debentures
      shall otherwise consent in writing, each Guarantor will not directly or
      indirectly on or after the date of this Guarantee:

    

    i.           other
      than Permitted Indebtedness
      (as defined in
      the Debentures) enter into,
      create, incur, assume or suffer to exist any indebtedness for borrowed money
      of
      any kind, including but not limited to, a guarantee, on or with respect to
      any
      of its property or assets now owned or hereafter acquired
      or any
      interest therein or any income or profits therefrom;

    

    
      
        
        

      

      
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    ii.           other
      than Permitted Liens (as defined
      in the Debentures) enter
      into, create, incur, assume or suffer to exist any liens of any kind, on or
      with
      respect to any of its property or assets now
      owned or
      hereafter acquired or any interest therein or any income or profits therefrom;

    

    iii.           amend
      its certificate of incorporation,
      bylaws or other charter documents so as to adversely affect any rights of the
      Holder
      hereunder;

    

    iv.           repay,
      repurchase or offer to repay, repurchase or otherwise acquire more than a de
      minimis number of shares of its securities;

    

    v.           repay,
      repurchase or offer to repay,
      repurchase or otherwise acquire any Indebtedness, other than the Debentures
      if
      on a pro-rata basis, other
      than regularly scheduled principal and interest payments as such terms are
      in
      effect as of the date of
      the Purchase Agreement;

    

    vi.           pay
      cash dividends on any equity securities of the Company;

    

    vii.           enter
      into any transaction with any Affiliate of the Guarantor which would be required
      to be disclosed in any public filing of the Company with the Commission, unless
      such transaction is made on an arm’s-length basis and expressly approved by a
      majority of the disinterested directors of the Company (even if less than a
      quorum otherwise required for board approval); or

    

    viii.           enter
      into any agreement with respect to any of the foregoing.

    

    5.           Miscellaneous.

    

    (a)           Amendments
      in Writing. None of the terms or provisions of this Guarantee may be waived,
      amended, supplemented or otherwise modified except in writing by the
      Purchasers.

    

    (b)           Notices.
      All notices, requests and demands to or upon the Purchasers or any Guarantor
      hereunder shall be effected in the manner provided for in the Purchase
      Agreement, provided that any such notice, request or demand to or upon any
      Guarantor shall be addressed to such Guarantor at its notice address set forth
      on Schedule 5(b).

     

    
      
        
        

      

      
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    (c)           No
      Waiver By Course Of Conduct; Cumulative Remedies. The Purchasers shall not
      by any act (except by a written instrument pursuant to Section 5(a)), delay,
      indulgence, omission or otherwise be deemed to have waived any right or remedy
      hereunder or to have acquiesced in any default under the Transaction Documents
      or Event of Default. No failure to exercise, nor any delay in exercising, on
      the
      part of the Purchasers, any right, power or privilege hereunder shall operate
      as
      a waiver thereof. No single or partial exercise of any right, power or privilege
      hereunder shall preclude any other or further exercise thereof or the exercise
      of any other right, power or privilege. A waiver by the Purchasers of any right
      or remedy hereunder on any one occasion shall not be construed as a bar to
      any
      right or remedy which the Purchasers would otherwise have on any future
      occasion. The rights and remedies herein provided are cumulative, may be
      exercised singly or concurrently and are not exclusive of any other rights
      or
      remedies provided by law.

    

    (d)           Enforcement
      Expenses; Indemnification.

    

    
      	
               

            	
              (i)

            	
              Each
                Guarantor agrees to pay, or reimburse the Purchasers for, all its
                costs
                and expenses incurred in collecting against such Guarantor under
                the
                guarantee contained in Section 2 or otherwise enforcing or preserving
                any
                rights under this Guarantee and the other Transaction Documents to
                which
                such Guarantor is a party, including, without limitation, the reasonable
                fees and disbursements of counsel to the
                Purchasers.

            

    

    

    
      	
               

            	
              (ii)

            	
              Each
                Guarantor agrees to pay, and to save the Purchasers harmless from,
                any and
                all liabilities with respect to, or resulting from any delay in paying,
                any and all stamp, excise, sales or other taxes which may be payable
                or
                determined to be payable in connection with any of the transactions
                contemplated by this Guarantee.

            

    

    

    
      	
               

            	
              (iii)

            	
              Each
                Guarantor agrees to pay, and to save the Purchasers harmless from,
                any and
                all liabilities, obligations, losses, damages, penalties, actions,
                judgments, suits, costs, expenses or disbursements of any kind or
                nature
                whatsoever with respect to the execution, delivery, enforcement,
                performance and administration of this Guarantee to the extent the
                Company
                would be required to do so pursuant to the Purchase
                Agreement.

            

    

    

    
      	
               

            	
              (iv)

            	
              The
                agreements in this Section shall survive repayment of the Obligations
                and
                all other amounts payable under the Purchase Agreement and the other
                Transaction Documents.

            

    

     

     

    
      
        
        

      

      
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    (e)           Successor
      and Assigns. This Guarantee shall be binding upon the successors and assigns
      of each Guarantor and shall inure to the benefit of the Purchasers and their
      respective successors and assigns; provided that no Guarantor may assign,
      transfer or delegate any of its rights or obligations under this Guarantee
      without the prior written consent of the Purchasers.

    

    (f)           Set-Off.
      Each Guarantor hereby irrevocably authorizes the Purchasers at any time and
      from
      time to time while an Event of Default under any of the Transaction Documents
      shall have occurred and be continuing, without notice to such Guarantor or
      any
      other Guarantor, any such notice being expressly waived by each Guarantor,
      to
      set-off and appropriate and apply any and all deposits, credits, indebtedness
      or
      claims, in any currency, in each case whether direct or indirect, absolute
      or
      contingent, matured or unmatured, at any time held or owing by the Purchasers
      to
      or for the credit or the account of such Guarantor, or any part thereof in
      such
      amounts as the Purchasers may elect, against and on account of the obligations
      and liabilities of such Guarantor to the Purchasers hereunder and claims of
      every nature and description of the Purchasers against such Guarantor, in any
      currency, whether arising hereunder, under the Purchase Agreement, any other
      Transaction Document or otherwise, as the Purchasers may elect, whether or
      not
      the Purchasers have made any demand for payment and although such obligations,
      liabilities and claims may be contingent or unmatured. The Purchasers shall
      notify such Guarantor promptly of any such set-off and the application made
      by
      the Purchasers of the proceeds thereof, provided that the failure to give such
      notice shall not affect the validity of such set-off and application. The rights
      of the Purchasers under this Section are in addition to other rights and
      remedies(including, without limitation, other rights of set-off) which the
      Purchasers may have.

    

    (g)           Counterparts.
      This Guarantee may be executed by one or more of the parties to this Guarantee
      on any number of separate counterparts (including by telecopy), and all of
      said
      counterparts taken together shall be deemed to constitute one and the same
      instrument.

    

    (h)           Severability.
      Any provision of this Guarantee which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction.

    

    (i)           Section
      Headings. The Section headings used in this Guarantee are for convenience of
      reference only and are not to affect the construction hereof or be taken into
      consideration in the interpretation hereof.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (j)           Integration.
      This Guarantee and the other Transaction Documents represent the agreement
      of
      the Guarantors and the Purchasers with respect to the subject matter hereof
      and
      thereof, and there are no promises, undertakings, representations or warranties
      by the Purchasers relative to subject matter hereof and thereof not expressly
      set forth or referred to herein or in the other Transaction
      Documents.

    

    (k)           Governing
      Law. THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
      ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY
      PRINCIPLES OF CONFLICTS OF LAWS.

    

    (l)           Submission
      to Jurisdictional; Waiver. Each Guarantor hereby

    irrevocably
      and unconditionally:

    

    
      	
               

            	
              (i)

            	
              submits
                for itself and its property in any legal action or proceeding relating
                to
                this Guarantee and the other Transaction Documents to which it is
                a party,
                or for recognition and enforcement of any judgment in respect thereof,
                to
                the non-exclusive general jurisdiction of the Courts of the State
                of New
                York, located in New York County, New York, the courts of the United
                States of America for the Southern District of New York, and appellate
                courts from any thereof;

            

    

    

    
      	
               

            	
              (ii)

            	
              consents
                that any such action or proceeding may be brought in such courts
                and
                waives any objection that it may now or hereafter have to the venue
                of any
                such action or proceeding in any such court or that such action or
                proceeding was brought in an inconvenient court and agrees not to
                plead or
                claim the same;

            

    

    

    
      	
               

            	
              (iii)

            	
              agrees
                that service of process in any such action or proceeding may be effected
                by mailing a copy thereof by registered or certified mail (or any
                substantially similar form of mail), postage prepaid, to such Guarantor
                at
                its address referred to in the Purchase Agreement or at such other
                address
                of which the Purchasers shall have been notified pursuant
                thereto;

            

    

    

    
      	
               

            	
              (iv)

            	
              agrees
                that nothing herein shall affect the right to effect service of process
                in
                any other manner permitted by law or shall limit the right to sue
                in any
                other jurisdiction; and

            

    

    

    
      	
               

            	
              (v)

            	
              waives,
                to the maximum extent not prohibited by law, any right it may have
                to
                claim or recover in any legal action or proceeding referred to in
                this
                Section any special, exemplary, punitive or consequential
                damages.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (m)           Acknowledgements.  Each
      Guarantor hereby acknowledges that:

    

    
      	
               

            	
              (i)

            	
              it
                has been advised by counsel in the negotiation, execution and delivery
                of
                this Guarantee and the other Transaction Documents to which it is
                a
                party;

            

    

    

    
      	
               

            	
              (ii)

            	
              the
                Purchasers have no fiduciary relationship with or duty to any Guarantor
                arising out of or in connection with this Guarantee or any of the
                other
                Transaction Documents, and the relationship between the Guarantors,
                on the
                one hand, and the Purchasers, on the other hand, in connection herewith
                or
                therewith is solely that of debtor and creditor;
                and

            

    

    

    
      	
               

            	
              (iii)

            	
              no
                joint venture is created hereby or by the other Transaction Documents
                or
                otherwise exists by virtue of the transactions contemplated hereby
                among
                the Guarantors and the Purchasers.

            

    

    

    (n)           Additional
      Guarantors.  The Company shall cause each of its subsidiaries
      formed or acquired on or subsequent to the date hereof to become a Guarantor
      for
      all purposes of this Guarantee by executing and delivering an Assumption
      Agreement in the form of Annex 1 hereto.

    

    (o)           Release
      of Guarantors. Subject to Section 2.6, each Guarantor will be released from
      all liability hereunder concurrently with the repayment in full of all amounts
      owed under the Purchase Agreement, the Debentures and the other Transaction
      Documents.

    

    (p)           Seniority.
      The Obligations of each of the Guarantors hereunder rank senior in priority
      to
      any other Indebtedness (as defined in the Purchase Agreement) of such
      Guarantor.

    

    (q)           Waiver
      of Jury Trial. EACH GUARANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, THE
      PURCHASERS, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY
      LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE AND FOR ANY COUNTERCLAIM
      THEREIN.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, each of the undersigned has caused this Guarantee to
      be
      duly executed and delivered as of the date first above written.

    

     

                            VISUAL
      MANAGEMENT
      SYSTEMS HOLDING, INC.

     

                                                                                                     By:
      _________________________________

                                                                                                Name:Jason
      Gonzalez

                                                                                                 
Title:President

     

                            VISUAL
      MANAGEMENT
      SYSTEMS, LLC

     

                            By:  Visual
      Management Systems Holding, Inc.

                                       
      Managing Member

     

                                                                                                    
      By: _________________________________

                                                                                                                                                        Name:Jason
      Gonzalez

                                                                                                                                                         
      Title:President

     

                            VISUAL
      MANAGEMENT
      PDG, LLC

     

                            By:  Visual
      Management Systems Holding, Inc.

                               
      Managing Member

     

                                                                                                    
      By: ________________________________

                                                                                                        Name:Jason
      Gonzalez

                                                                                                                         
      Title:President

     

                            VMS
      FINANCIAL
      SERVICES, LLC

     

                            By:  Visual
      Management Systems Holding, Inc.

                                                                                                                                                                                   
Managing
      Member

     

                                                                                                                                                            
      By: _________________________________

                                                                                                                                                        Name:Jason
      Gonzalez

                                                                                                                                                         
      Title:President

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    SCHEDULE
      1

    

    GUARANTORS

    

                      The
      following are the names, notice addresses and jurisdiction of organization
      of
      each Guarantor.

     

                                                                                                                        
      COMPANY

                                                           
      JURISDICTION
      OF                           OWNED
      BY

                                                           
      INCORPORATION                            PERCENTAGE

                                                          
       -------------                                             ----------

    

    

    ----------

    
 

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Annex
      1
      to

    SUBSIDIARY
      GUARANTEE

    

    ASSUMPTION
      AGREEMENT, dated as of ____ __, ______ made by ______________________________,
      a
      ______________ corporation (the “Additional Guarantor”), in favor of the
      Purchasers pursuant to the Purchase Agreement referred to below. All capitalized
      terms not defined herein shall have the meaning ascribed to them in such
      Purchase Agreement.

     

     

    W
      I T N E S S E T H :

    

               WHEREAS,
      [COMPANY], a [___________ corporation (the “Company”) and the Purchasers
      have entered into a Securities Purchase Agreement, dated as of [________ ___,
      2007 (as amended, supplemented or otherwise modified from time to time, the
      “Purchase Agreement”);

    

               WHEREAS,
      in connection with the Purchase Agreement, the Company and its Subsidiaries
      (other than the Additional Guarantor) have entered into the Subsidiary
      Guarantee, dated as of [______________ ____, 2007 (as amended, supplemented
      or
      otherwise modified from time to time, the “Guarantee”) in favor of the
      Purchasers;

    

               WHEREAS,
      the Purchase Agreement requires the Additional Guarantor to become a party
      to
      the Guarantee; and

    

               WHEREAS,
      the Additional Guarantor has agreed to execute and

    deliver
      this Assumption Agreement in order to become a party to the
      Guarantee;

    

                                    NOW,
      THEREFORE, IT IS AGREED:

    

    1.           Guarantee.
      By executing and delivering this Assumption Agreement, the Additional Guarantor,
      as provided in Section 5(n) of the Guarantee, hereby becomes a party to the
      Guarantee as a Guarantor thereunder with the same force and effect as if
      originally named therein as a Guarantor and, without limiting the generality
      of
      the foregoing, hereby expressly assumes all obligations and liabilities of
      a
      Guarantor thereunder. The information set forth in Annex 1-A hereto is hereby
      added to the information set forth in Schedule 1 to the Guarantee. The
      Additional Guarantor hereby represents and warrants that each of the
      representations and warranties contained in Section 3 of the Guarantee is true
      and correct on and as the date hereof as to such Additional Guarantor (after
      giving effect to this Assumption Agreement) as if made on and as of such
      date.

    

    2.           Governing
      Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
      INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

                      IN
      WITNESS WHEREOF, the undersigned has caused this Assumption Agreement
      to be duly executed and delivered as of the date first above
      written.

    

    

                                                                                       [ADDITIONALGUARANTOR]

    

                                                                                        By: _______________________________                                                                                                          

                                                                                        Name:

                                                                                        Title:

     

    
      

       

      16Development and License Agreement

 Exhibit 10.23 
 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 

Confidential Treatment Requested 
 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
 DEVELOPMENT AND LICENSE AGREEMENT 
 This Development and License Agreement (the “Agreement”), effective as of September 15, 2002 (the “Effective Date”), is entered into by and between RF Magic, Inc., a Delaware
corporation having a place of business at 10182 Telesis Court, 4th Floor, San Diego, California 92121-4777, U.S.A. (“RFM”) and
STMicroelectronics N.V., with its registered office at WTC Schiphol Airport, Schiphol Boulevard 265, 1118 BH Schiphol Airport, Amsterdam, the Netherlands, acting through its Swiss Branch located at 39, Chemin du Champ des Filles,
1228 Plan-les-Ouates, Geneva, Switzerland (“ST”). 
 Recitals 
 WHEREAS, ST is a global independent semiconductor company which designs, develops, manufactures and markets a broad range of integrated circuits and
discrete devices based on semiconductors used in a wide variety of microelectronic applications, including telecommunication systems, computer systems, consumer products, automotive products and industrial automation and control systems. 

WHEREAS, RFM is a fabless semiconductor company that designs, builds (or has built on its behalf), and sells complex, highly integrated
systems-on-a-chip radio frequency integrated circuits for consumer broadband and entertainment markets. 
 WHEREAS, ST desires to obtain from
RFM certain rights to manufacture and sell certain integrated circuits for satellite single tuners to customers of ST. 
 WHEREAS, RFM is
willing, subject to the terms and conditions set forth below, to design the foregoing integrated circuits and develop certain hardware and software to help bring such integrated circuits into production, and is willing to deliver and license a GDSII
design file for the same to ST solely for ST to manufacture and sell such integrated circuits to customers of ST. 
 NOW, THEREFORE, in
furtherance of the foregoing recitals and in consideration of the mutual covenants and obligations set forth in this Agreement, the parties agree as follows: 
 Articles 
  

	 	1.	DEFINITIONS. 

 1.1
“Affiliates” shall mean a corporation or other legal entity controlling, controlled by, or under common control, now or hereafter, directly or indirectly, with ST, provided that such entity shall be considered an Affiliate only for
the time during which such control exists. For purposes of this definition “control” shall mean ownership or control, either directly or indirectly, of greater than fifty percent (50%) of the voting rights of such entity. 

1.2 “Customers” means customers of ST. 
 1.3 “Development Plan” means the development plan for the Product as set forth in Exhibit A. 
 1.4 “Development Schedule” means the development schedule for the Product as set forth in Exhibit B. 
 1.5 “Evaluation Circuit Design” means the circuit board design developed by RFM pursuant to this Agreement for use in evaluating the functionality of Products. 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 1.6 “Evaluation Software” means the software developed by RFM pursuant to this
Agreement to evaluate the functionality of Products relative to the Specifications, in object code only. 
 1.7 “Exclusive
Period” has the meaning set forth in Exhibit D. 
 1.8 “First Commercial Production Date” means has the
meaning set forth in Exhibit D. 
 1.9 “IC Design” means the integrated circuit design developed by RFM pursuant to
this Agreement for a radio frequency integrated circuit [...***...]. 
 1.10 “IC Design File” means the
[...***...] database file containing the IC Design information necessary to manufacture the Mask Tooling Set. 
 1.11
“Intellectual Property Rights” means any and all (by whatever name or term known or designated) tangible and intangible and now known or hereafter existing (a) rights associated with works of authorship, including but not
limited to copyrights, moral rights and mask-works, (b) rights in and relating to the protection of trademarks, service marks, trade names and goodwill, (c) rights in and relating to the protection of trade secrets and confidential
information, (d) patents, designs, algorithms and other industrial property rights and rights associated therewith, (e) other intellectual and industrial property and proprietary rights (of every kind and nature however designated)
relating to intangible property that are analogous to any of the foregoing rights, whether arising by operation of law, contract, license or otherwise, and (f) registrations, applications, renewals, extensions, continuations, divisions or
reissues thereof now or hereafter in force throughout the world (including without limitation rights in any of the foregoing). 
 1.12
“Manufacturing Test Circuit Design” means the circuit board design developed by the RFM pursuant to this Agreement, in accordance with the Development Plan, to test the functionality of Product upon completion of the manufacturing
and assembly of the Product. 
 1.13 “Manufacturing Test Software” means the software developed by RFM pursuant to this
Agreement, and in accordance with the Development Plan, that is used to confirm functionality of the Products during final testing in the Product manufacturing process, in object code. 
 1.14 “Mask Tooling Set” means the collection of masks used to manufacture the layers of Products, or any portion of a Product.

 1.15 “Product” means a radio frequency integrated circuit Manufactured by ST (or on behalf of ST pursuant to
Section 4.1(B)) that conforms to the IC Design. 
 1.16 “Reference Design” means the system level circuit board design,
including [...***...], developed by ST pursuant to this Agreement to demonstrate the functionality of the Products. 
 1.17
“RFM Materials” means the Evaluation Circuit Designs, Evaluation Software, Specifications, IC Designs, IC Design Files, Manufacturing, Test Circuit Designs and Manufacturing Test Software. 
 1.18 “Satellite Single Tuner” means a device that enables the selection and frequency conversion of [...***...]. 
 1.19 “Specifications” means the specifications set forth in Exhibit C. 
 1.20 “ST Deliverables” means the demodulator software drivers needed to develop the Evaluation Software and Evaluation Circuit Design.

  

 - 2 - 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 1.21 “ST Existing RF Product” has the meaning set forth in Exhibit D.

  

	 	2.	SCOPE OF AGREEMENT. 

 Prior to any exercise of any rights (including, without limitation, license rights) by an Affiliate, ST shall (a) cause such Affiliate to agree to be bound by all the terms of this Agreement to the same extent as
ST is bound, and (b) provide RFM with notice of the name and legal address of each Affiliate to be included within the scope of this Agreement. ST unconditionally guarantees performance by each Affiliate of all of the obligations hereunder to
the same extent ST is bound to perform under this Agreement, without prejudice to RFM’s right to seek injunctive relief for breach of this Agreement directly against such Affiliate if RFM so elects. 
  

	 	3.	DEVELOPMENT. 

 3.1 In General.
In accordance with the Development Plan and Development Schedule, RFM shall use commercially reasonable efforts, at RFM’s cost and expense, to develop the: (a) IC Designs in accordance with Specifications; and (b) Evaluation Software,
Manufacturing Test Software, Manufacturing Test Circuit Design and Evaluation Circuit Designs. The parties shall use commercially reasonable efforts, with each party responsible for and bearing its own costs and expenses in connection therewith, to
jointly develop the Reference Design in accordance with the Development Plan and Development Schedule. ST shall use commercially reasonable efforts, at ST’s cost and expense, to develop the Mask Tooling Sets in accordance with the Development
Plan and Development Schedule. Any failure to conform to Development Plan and Development Schedule shall not be deemed to be a material breach of this Agreement upon which a party may exercise termination rights under Section 9.3, unless a
party fails to use commercially reasonable efforts to meet such plans and schedules. ST agrees that RFM’s ability to comply with the Development Plan and Development Schedule depends on RFM receiving reasonable cooperation and assistance from
ST in accordance with RFM’s requests therefore. 
 3.2 Project Managers. Each party shall designate in writing to the other party
a project manager (the “Project Manager(s)”) who shall serve as the primary source of communication with the other party with respect to the development activities under Section 3.1. The Project Managers shall have primary
responsibility for coordinating all major decisions related to such development. Each party may replace its Project Manager from time to time, as it deems necessary or appropriate, upon written notice to the other party. 
 3.3 Testing and Acceptance. Within [...***...] after RFM’s delivery of the IC Design File to ST, ST shall manufacture and deliver a
commercially reasonable quantity of evaluation Product to RFM for evaluation testing. Upon RFM’s receipt of such Products from ST, RFM shall test such Products with the applicable Evaluation Software and in the applicable Evaluation Circuit
Design to determine if the IC Design for such Products conforms to the applicable Specifications. Upon completion of such testing, RFM shall provide ST with the data from such testing (“Evaluation Data”). Upon ST’s receipt of
the Evaluation Data, ST shall evaluate whether the Evaluation Data indicates that the IC Design conforms to the Specifications in all material respects. ST shall accept or reject the IC Design based on the Evaluation Data and shall give RFM written
notice thereof within seven (7) calendar days after RFM’s delivery of the Evaluation Data to ST. An IC Design will be deemed accepted by ST if RFM has not received notification of rejection of such IC Design from ST within seven
(7) calendar days after RFM’s delivery of the applicable Evaluation Data to ST. ST’s refusal to accept the IC Design must be reasonable, must be in writing and must be accompanied by a reasonably detailed description of the manner in
which the IC Design fails to comply with the Specifications in all material respects (collectively, the “Deficiencies”) so that RFM can have the opportunity to correct the Deficiencies. If ST properly rejects the IC Design, RFM
shall use commercially reasonable efforts to correct any Deficiencies and redeliver a corrected IC Design File within [...***...] after RFM’s receipt of the rejection notice and the foregoing provisions set forth in this Section 3.3
shall be reapplied until the IC Design is accepted; provided, however, that upon the [...***...] or any subsequent rejection, either party may terminate this Agreement upon thirty (30) calendar days prior written notice to the other
party, unless the IC Design is accepted during such notice period. 
  

 - 3 - 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

	 	4.	LICENSES. 

 4.1 Licenses.

 (A) Evaluation. Subject to the terms and conditions of this Agreement, RFM grants to ST and its Affiliates (subject to Article 2
above) a nontransferable (subject to Section 14.3), nonsublicenseable, nonexclusive license, under RFM’s Intellectual Property Rights in and to the Evaluation Software, Specifications and Evaluation Circuit Designs, to: (i) use and
reproduce the Evaluation Software and Specifications solely to conduct evaluation testing of the Products pursuant to Section 3.3; and (ii) use the Evaluation Circuit Designs solely to conduct evaluation testing of the Products pursuant to
Section 3.3. 
 (B) Manufacturing. Subject to the terms and conditions of this Agreement, RFM grants to ST and its Affiliates
(subject to Article 2 above) a nontransferable (subject to Section 14.3), nonsublicenseable, nonexclusive license, under RFM’s Intellectual Property Rights in and to the IC Designs, IC Design Files, Mask Tooling Sets, Manufacturing Test
Circuit Designs and Manufacturing Test Software, to: (i) make and have made the Products solely for sale to Customers pursuant to this Agreement (ii) use and reproduce the IC Design Files to manufacture and have manufactured the Mask
Tooling Sets solely for use in accordance with this Agreement; (iii) use the Mask Tooling Sets to manufacture and have manufactured Products solely for sale, either on a standalone basis or bundled with other ST semiconductor products, to
Customers solely in accordance with this Agreement, (iv) use the Manufacturing Test Circuit Designs solely to test the functionality of Products manufactured in accordance with this Agreement, and (v) use and reproduce the Manufacturing
Test Software solely to test the functionality of Products manufactured in accordance with this Agreement. 
 (C) Sales by ST.
Subject to the terms and conditions of this Agreement, RFM grants to ST and its Affiliates (subject to Article 2 above) a nontransferable (subject to Section 14.3), nonsublicenseable, nonexclusive license, under RFM’s Intellectual Property
Rights in and to IC Design and IC Design File, to offer for sale, sell, and import Products, either on a standalone basis or bundled with other ST semiconductor products, solely in accordance with this Agreement. 
 4.2 Exclusivity and Sales Requirements. 
 (A) During the Exclusive Period, RFM shall not (i) sell Products, or (ii) authorize any third party to sell and/or distribute Products. 
 (B) For the purposes of clarification, upon the expiration or termination of the Exclusive Period, RFM may sell or appoint third parties to sell radio frequency integrated circuits that conform to the Specifications;
and/or (b) buy Products from ST under the Supply Terms (as defined below). During the [...***...] period immediately following the Effective Date, the parties shall negotiate in good faith the certain supply terms for ST’s supply of
Product to RFM (“Supply Terms”) including, without limitation, the following terms: pricing, process qualification, order acceptance, lead times, order rescheduling, order cancellation, delivery, late deliveries, allocation, Product
acceptance, ST warranties, ST support, process changes and process discontinuance. 
 4.3 ST License Restrictions. ST shall not
itself, or through any Affiliate, agent, or third party: (a) sell, lease, license, sublicense or in any way have third parties use the RFM Materials; (b) decompile, disassemble, reverse engineer, or attempt to derive source code, as
applicable, from the RFM Materials, in whole or in part, except to the extent such restriction is prohibited by applicable law and not waiveable thereunder; (c) modify or create derivative works from the RFM Materials; or (d) use the RFM
Materials to provide processing services to third parties or otherwise use the RFM Materials on a service bureau basis. Except as expressly granted in this Agreement, RFM grants no license, by implication, estoppel, or otherwise to the RFM
Materials. 
 4.4 Subject to the terms and conditions of this Agreement, ST grants to RFM a non-exclusive, revocable (only upon expiration or
termination of the Agreement), non-transferable, limited, license, 

  

 - 4 - 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 
without the right to sublicense, to solely and only use ST Deliverables to develop the Evaluation Software and Evaluation Circuit Design and provide warranty
and other support for the Products. RFM may terminate the foregoing license upon written notice to ST. RFM may not transfer the foregoing license without ST’s prior written consent, such consent not to be unreasonably withheld or delayed.
RFM’s (an any Acquirer’s) nonperformance of its obligations to develop and deliver the Evaluation Software and Evaluation Circuit Design and to provide warranty and other support for the Products under this Agreement shall be excused if
and to the extent such RFM (or Acquirer’s) nonperformance relates to ST’s refusal to transfer the foregoing license upon request. ST shall deliver or has already delivered the ST Deliverables to RFM. 
 4.5 Except as necessary to exercise the license rights granted in Section 4.4, RFM shall not itself, or through any agent, or third party;
(a) sell, lease, license, sublicense or in any way have third parties use the ST Deliverables; (b) decompile, disassemble, reverse engineer, or attempt to derive source code, as applicable, from the ST Deliverables, in whole or in part,
except to the extent such restriction is prohibited by applicable law and not waiveable thereunder; (c) modify or create derivative works from the ST Deliverables; or (d) use the ST Deliverables to provide processing services to third
parties or otherwise use the ST Deliverables on a service bureau basis. Except as expressly granted in Section 4.4 above, ST grants to RFM no license, by implication, estoppel, or otherwise to the ST Deliverables. 
  

	 	5.	SALES ACTIVITIES AND CUSTOMER SUPPORT. 

 5.1 Conflict of Interest. During the Exclusive Period, ST shall not, without RFM’s prior written consent, develop, represent, promote or
otherwise try to sell, license or otherwise distribute, whether directly or indirectly, any products or services that in the parties’ reasonable judgment compete with the Products, except for the ST Existing RF Product. 
 5.2 Product Support. ST shall have the responsibility for supporting all Products distributed under this Agreement. ST shall ensure that all
Customer questions regarding the use or operation of Products are initially addressed to and answered by ST. Unless otherwise agreed in writing by RFM, ST shall not represent to any third party that RFM is available to answer questions received
directly from any Customer. Without limiting the foregoing, ST also shall be responsible for (x) providing sufficient information to RFM for RFM to duplicate any reported error related to the design in the Products; and (y) providing
reasonably cooperation and full information between the parties in the furnishing of support for the Products. 
  

	 	6.	MASK TOOLING SET. 

 6.1 Manufacture. ST shall manufacture, at its own expense, the Mask Tooling Sets. 
 6.2 Mask
Proprietary Rights. Except for the license granted under Section 4.1(B), RFM shall own all Intellectual Property Rights in and to the Mask Tooling Sets. Subject to the foregoing, ST shall own title to the tangible Mask Tooling Sets,
provided that such Mask Tooling Sets shall be used solely for the benefit of RFM in accordance with this Agreement. The Mask Tooling Set shall be treated as RFM’s Confidential Information in accordance with Article 12. ST agrees that the Mask
Tooling Set will at all times contain RFM’s trademark, mask work, and copyright notices. Upon expiration or termination of this Agreement (subject only to any ST right to fulfill purchase orders pursuant to Section 9.4(B), and in such
case, upon expiration of such rights), ST shall destroy the Mask Tooling Sets and certify in writing (by an authorized officer of ST) that the Mask Tooling Sets have been destroyed pursuant to this Section 6.2. 
  

	 	7.	PROPRIETARY RIGHTS. 

 7.1 RFM. Except for the licenses expressly granted by RFM to ST pursuant to Article 4, RFM and/or its licensors shall own all right, title and interest in and to the Evaluation Circuit Design, Evaluation Software, Manufacturing Test
Software, Specifications, IC Design, IC Design File and Manufacturing Test Circuit Design (“RFM Owned Materials”), including any Intellectual Property Rights therein. RFM and/or its licensors 

  

 - 5 - 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 
shall own all Intellectual Property Rights in and to the Mask Tooling Sets. Provided, however, that RFM’s ownership of the Evaluation Software shall not
be deemed to give RFM any ownership in any ST Deliverables including the Intellectual Property Rights therein, even though such ST Deliverables may be used with the Evaluation Software or the Evaluation Circuit Design. 
 7.2 ST. Subject to Section 7.1, ST shall own all of right, title and interest in and to the Reference Design, including any Intellectual
Property Rights therein. 
 7.3 Proprietary Notice. Each party shall reproduce and shall not remove, alter, cover or obfuscate any all
patent, copyright, trademark, and other proprietary notices contained in or on the RFM Materials, ST Deliverables or other materials that are provided by a party to the other. 
  

	 	8.	ROYALTIES AND PAYMENT. 

 8.1 Royalties. In consideration for the licenses granted by RFM to ST pursuant to this Agreement, ST shall pay RFM the royalty fees (“Royalties”) set forth in Exhibit D. 
 8.2 Reporting. Within [...***...] after the end of each calendar quarter, ST shall provide to RFM a written report that will contain at
minimum the total number of Products sold, the total number of Products for which royalty payment shall be made, the amounts invoiced for such Products; and the dates such Products were sold by ST and the Affiliates during such quarter. 

8.3 Payment. Within [...***...] after the end of each calendar quarter, ST shall pay RFM all Royalties due for such quarter. ST shall pay
all Royalties in full even if ST has not received payment from its Customers. All references to “dollars,” “U.S. $” or “$” shall mean United States dollars, and all payment under this Agreement shall be made in U.S.
dollars. 
 8.4 Late Payments. Fees not paid when due shall accrue late charges at a rate of [...***...] per month, or the
maximum rate allowed under law, whichever is lower, from the date such payment was due until the date paid. 
 8.5 Taxes. All payments
made under this Agreement do not include any taxes, duties or charges of any kind imposed by any federal, state, or local governmental entity. When RFM has the legal obligation to collect and remit such taxes, excluding only taxes based solely on
RFM’s net income, the appropriate amount shall be due upon invoice to ST unless ST provides RFM with a valid tax exemption certificate authorized by the appropriate taxing authority. All payments by ST shall be made free and clear of, and
without reduction for, any withholding taxes. Any such taxes which are otherwise imposed on payments to RFM shall be the sole responsibility of ST. ST shall provide RFM with official receipts issued by the appropriate taxing authority or such other
evidence as is reasonably requested by RFM to establish that such taxes have been paid. 
 8.6 Audit Rights. During the term of this
Agreement and for [...***...] thereafter, ST shall maintain complete and accurate books and records with respect to the sale of Products, or otherwise pertaining to the payment of fees hereunder (“ST Records”). RFM may have an
independent auditor, on at least seven (7) calendar days prior notice to ST, audit the ST Records, provided that such audits shall not be performed more frequently than [...***...] period. Any such audit must be performed during normal
business hours and conducted in such a manner as not to interfere with the ordinary conduct of ST’s business. The auditor conducting such audit must execute an appropriate confidentiality agreement with respect to ST’s non-public and
proprietary information. The audit will be at RFM’s cost and expense, unless, however, such audit reveals an underpayment of [...***...] or more for the period audited, then ST shall immediately pay the shortage (including interest
pursuant to Section 8.4) and the costs and expenses of such audit. The auditors will report to RFM only upon whether the royalties paid to RFM by ST were or were not correct, and if incorrect, what are the correct amounts for the royalties. ST
shall be supplied with a copy of or sufficient extracts from any report prepared by the auditors. 
  

 - 6 - 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 8.7 Product Pricing. ST must list Products as a separate line item on all ST price lists and
any purchase orders or invoices related to Products. For the avoidance of doubt, RFM acknowledges and agrees that no royalty shall be due to [...***...]. No royalty will accrue for [...***...]. 
  

	 	9.	TERM AND TERMINATION. 

 9.1 Term. This Agreement will commence on the Effective Date and shall continue for a term of three (3) years, unless earlier terminated as set forth Herein. The Agreement shall renew automatically for
additional terms of one (1) year unless either party gives written notice of its intent to terminate at least ninety (90) calendar days prior to the expiration of the then-current term. 
 9.2 Termination for Failure to Invest. If ST fails to purchase three million dollars ($3,000,000) of preferred stock in RFM’s Series C
financing pursuant to mutually agreed upon terms on or before June 2, 2003, RFM may, at its option and election, terminate this Agreement effective upon written notice to ST. 
 9.3 Termination for Cause. Either party may terminate this Agreement upon written notice If (i) the other party materially breeches any term
or condition of this Agreement and fails co cure such breach within thirty (30) calendar days alter receiving written, notice of such breach, or (ii) the other party becomes the subject of any voluntary or involuntary proceeding under the
applicable bankruptcy or insolvency laws and such proceeding is not dismissed within sixty days after the other party’s receipt of written notice of such proceeding. 
 9.4 Effect of Termination or Expiration. 
 (A) Return of Materials. Within thirty
(30) calendar days after the expiration or termination of this Agreement (subject only to any ST right to fulfill purchase orders pursuant to Section 9.4(B), and in such case, upon expiration of such rights), each party will return all
Confidential Information of the other party in its possession or control for shipment or, upon the other party’s request, destroy such information. Within thirty (30) calendar days of a written request by the other party, an officer of
each party shall certify to the other party that all copies of Confidential Information of the other party received hereunder have been returned or destroyed pursuant to this Section 9.4(A). 
 (B) Outstanding Purchase Orders. If ST terminates this Agreement pursuant to Section 9.3, ST shall have [...***...]. If RFM terminates
this Agreement pursuant to Section 9.3, ST may [...***...]. 
 9.5 Survival. Notwithstanding any expiration or termination
of this Agreement, all payment obligations incurred prior to expiration or termination shall survive, and the following provisions shall survive: 1 (Definitions), 2 (Scope of Agreement), 4.3 (ST License Restrictions), 6.2 (Mask Proprietary Rights),
7 (Proprietary Rights), 8 (Royalties and Payment), 9.4 (Effect of Termination), 9.5 (Survival), 10.3 (Disclaimer), 11 (Indemnification), 12 (Confidentiality), 13 (Limitation of Liability) and 14 (Miscellaneous). In addition, if RFM terminates
this Agreement pursuant to Section 9.2, Section 4.1 shall survive solely as necessary for ST to exercise its rights under Section 9.4(B). All other rights and licenses granted hereunder will cause upon expiration or termination.

  

	 	10.	LIMITED WARRANTIES AND DISCLAIMER. 

 10.1 Limited Warranties. Each party represents and warrants to the other party that: (a) it has full power and authority to enter into this
Agreement and to carry out the transactions contemplated by this Agreement, and (b) the execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated by this Agreement, have been duly authorized by
all requisite corporate action on the part of each party; provided, however, that the foregoing shall not be construed as representation or warranty that the exploitation or the use of any RFM Materials does not infringe or misappropriate any third
party rights. As of the Effective Date, RFM warrants to ST that, to its knowledge, the IC Design does not infringe any third party Intellectual Property Rights. During the [...***...] period immediately following the First Commercial
Production Date, RFM warrants to ST that the IC Design shall conform to the Specifications in all material respects. 
  

 - 7 - 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 10.2 Remedy. If the IC Design does not conform as expressly warranted in the last sentence of
Section 10.1, RFM shall use reasonable efforts to modify such IC Design so that it complies with such warranty and reimburse ST for any actual direct costs incurred by ST in manufacturing replacement Products that conform to such modified IC
Design; provided that, upon RFM’s request, ST provides RFM with reasonable documentation showing such costs. THE FOREGOING PROVISIONS OF THIS SECTION 10.2 STATE THE ENTIRE LIABILITY AND OBLIGATIONS OF RFM, AND THE EXCLUSIVE REMEDY OF ST IF
DURING THE [...***...] PERIOD IMMEDIATELY FOLLOWING THE FIRST COMMERCIAL PRODUCTION DATE THE IC DESIGN DOES NOT CONFORM TO THE SPECIFICATIONS IN ALL MATERIAL RESPECTS. 
 10.3 Disclaimer. EXCEPT FOR THE WARRANTIES GRANTED UNDER SECTION 10.1, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND, WHETHER
ORAL OR WRITTEN, WHETHER EXPRESS, IMPLIED, OR ARISING BY STATUTE, CUSTOM, COURSE OF DEALING OR TRADE USAGE, WITH RESPECT TO THE SUBJECT MATTER HEREOF, IN CONNECTION WITH THIS AGREEMENT. EACH PARTY SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED
WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. 
  

	 	11.	INDEMNIFICATION. 

 11.1 Subject to
Section 11.3 and the terms of this Agreement, RFM shall indemnify and hold ST and ST’s Affiliates, (hereafter referred as “ST Indemnities”) harmless against and shall pay all damages fully awarded by a court of competent
jurisdiction, including reasonable attorneys’ fees, resulting from any suit, complaint, demand, action by a third party against ST Indemnities to the extent such suit, complaint, demand, or action alleges that the RFM Materials infringe the
Intellectual Property Rights of a third party (“ST Infringement Claim”), provided that: (i) ST gives written notice to RFM within ten (10) business days after receipt of written notice of such ST Infringement Claim (provided that
ST’s failure to provide such notice will relieve RFM of its indemnification obligations only if and to the extent that such failure prejudices RFM’s ability to defend the ST Infringement Claim), (ii) ST allows RFM at its expense
through attorneys of its own choice, to exclusively defend and/or control the defense of any ST Infringement Claim, and (iii) upon RFM request, ST shall provide full information, cooperation, and assistance in such investigation and defense,
and is reimbursed by RFM for all the reasonable costs incurred in collaborating in such investigation and defense, including trial and any appeals. ST may also participate, at its option and at its own expense, in such defense. No settlement of a ST
Infringement Claim that involves a remedy other than payment of money by RFM shall be agreed to and entered into without the consent of ST, whose consent shall not be unreasonably withheld or delayed. 
 11.2 Without limiting the indemnification obligation set forth in Section 11.1 above, if it is determined, or if RFM reasonably believes, that the
RFM Materials or any portion thereof infringes any third party intellectual property right, then RFM may, at its option and expense: (i) procure for ST the right to continue using such RFM Materials or portion thereof in accordance with this
Agreement; (ii) replace RFM Materials or portion thereof with a substantially similar non-infringing alternative; or (iii) modify such RFM Materials with at least functionally equivalent modification so that ST’s use becomes
non-infringing. RFM will not be liable for any costs or expenses incurred by ST or for any costs of replacement items, without RFM’s prior written authorization. 
 11.3 RFM shall have no liability under Section 11.1 for any claim of infringement based on (i) modification of the RFM Materials other than by RFM, (ii) use of other than the current version of the RFM
Materials despite the fact that RFM has offered to ST a modification or replacement of the RFM Materials and granted to ST a reasonable period of time to implement such new version of the RFM Materials in the applicable Products, (iii) the
combination or use of the RFM Materials furnished hereunder with materials not furnished or authorized in writing by RFM if such infringement would have been avoided by use of the Indemnified Materials alone, or (iv) the use of the RFM
Materials in violation of the licenses granted by RFM in Section 4.1 above. 
  

 - 8 - 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 11.4 Subject to Section 11.5 and the terms of this Agreement, ST shall indemnify and hold RFM
harmless against and shall pay all damages finally awarded by a court of competent jurisdiction, including reasonable attorneys’ fees, to the extent resulting from: (A) act that would be excluded from RFM’s indemnity obligations
pursuant to subsections (i), (ii), (iii) and/or (iv) of Section 11.3 above, or (B) any suit, complaint. demand, action by a third party against RFM alleging that the ST Deliverables infringe the Intellectual Property Rights of a
third party, provided that: (i) RFM gives written notice to ST within ten (10) business days after receipt of written notice of a claim (provided that RFM’s failure to provide such notice will relieve ST of its indemnification
obligations only if and to the extent that such failure prejudices ST’s ability to defend the claim); (ii) RFM allows ST at its expense through attorneys of its own choice, to exclusively defend and/or control the defense of the claim; and
RFM shall provide full information. cooperation, and assistance in such investigation and defense, and is reimbursed by ST for all the reasonable costs incurred in collaborating in such investigation and defense, including trial and any appeals,
provided that such RFM may also participate, at its option and at its own expense, in such defense. 
 11.5 ST shall have no liability under
Section 11.4 for any claim of infringement based on (i) modification of ST Deliverables other than by ST; (ii) use of other than the current version of the ST Deliverables despite the fact that ST has offered to RFM a modification or
replacement of the ST Deliverables and granted to RFM a reasonable period of time to implement use of such ST Deliverables pi scant to this Agreement, (iii) the combination or use of the ST Deliverables with or other materials if such
infringement would have been avoided by use of the ST Deliverables alone, or (iv) the use of the ST Deliverables in violation of the license granted by ST in Section 4.4 above. 
 11.6 Exclusive Remedy. THE FOREGOING PROVISIONS OF THIS ARTICLE 11 STATE THE ENTIRE LIABILITY AND OBLIGATIONS OF EACH PARTY, AND THE SOLE AND
EXCLUSIVE REMEDY OF THE OTHER PARTY, WITH RESPECT TO ANY ACTUAL OR ALLEGED INFRINGEMENT OF ANY PATENT, COPYRIGHT, MASK WORK RIGHT, TRADEMARK, TRADE SECRET OR OTHER INTELLECTUAL PROPERTY RIGHT OR BREACH OF ANY INTELLECTUAL PROPERTY NON-INFRINGEMENT
WARRANTY. 
  

	 	12.	CONFIDENTIALITY. 

 12.1
Definition. As used in this Agreement, the term “Confidential Information” means (a) any information disclosed by one party to the other pursuant to this Agreement which is in written, graphic, machine readable or other
tangible form and is marked “Confidential”, “Proprietary” or in some other manner to indicate its confidential nature, (b) oral information disclosed by one party to the other pursuant to this Agreement, provided that such
information is designated as confidential at the time of disclosure and reduced to a written summary by the disclosing parry, within thirty (30) calendar days after its oral disclosure, which is marked in a manner to indicate its confidential
nature and delivered to the receiving party, and (c) information otherwise reasonably expected to be treated in a confidential manner under the circumstances of disclosure. Notwithstanding the foregoing, all pricing terms in this Agreement and
RFM Materials shall be deemed Confidential Information of RFM. 
 12.2 Obligations. Neither party shall use any Confidential
Information of the other party for any purpose except as expressly set forth in this Agreement or otherwise authorized in writing in advance by the other party. Neither party shall disclose any Confidential Information of the other party to third
parties or to such party’s employees, except to those employees of the receiving party who are required to have the information in order for the receiving party to perform its obligations under this Agreement. Each party agrees, that it shall
take reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of the Confidential Information of the other party. Without limiting the foregoing, each party shall take at least those measures that it takes to protect
its own confidential information of a similar nature and shall ensure that its employees and contractors who have access to Confidential Information of the other party have signed a non-use and non-disclosure agreement in content at least as
protective of the other party’s Confidential Information as the provisions hereof prior to any disclosure of Confidential Information to such employees or contractors. Each party may disclose the existence of this Agreement, but agrees that the
terms and conditions of this Agreement will be treated as Confidential Information of the other party. 
  

 - 9 - 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 12.3 Exceptions. Notwithstanding the above, neither party shall have any obligations under
this Article 12 with regard to any Confidential Information of the other party which: (a) was generally known and available in the public domain at the time it was disclosed or becomes generally known and available in the public domain
through no fault of the receiving party; (b) can be documented as previously known by the receiving party prior to disclosure thereof by the disclosing party; (c) is disclosed with the prior written approval of the disclosing party;
(d) was independently developed by the receiving party without any use of the disclosing party’s Confidential Information; or (e) becomes known to the receiving party from a source other than the disclosing party without breach of
this Agreement by the receiving party and otherwise not in violation of the disclosing party’s rights. Nothing in this Agreement shall prevent the receiving party from disclosing Confidential Information to the extent the receiving party is
legally compelled to do so by any governmental investigative or judicial agency pursuant to proceedings over which such agency has jurisdiction; provided, however, that prior to any such disclosure, the receiving party shall: (x) assert the
confidential nature of the Confidential Information to such agency; (y) immediately notify the disclosing party in writing of such agency’s order or request to disclose; and (z) cooperate fully with the disclosing party in protecting
against any such disclosure and/or obtaining a protective order narrowing the scope of the compelled disclosure and protecting its confidentiality. 
 12.4 Authorized Disclosure. Notwithstanding the provisions of this Article 12, each party may disclose the terms of this Agreement (a) in connection with the requirements of an initial public offering or securities filing;
(b) in confidence, to accountants, banks, and financing sources and their advisors; (c) in confidence, in connection with the enforcement of this Agreement or rights under this Agreement; or (d) in confidence, in connection with a
merger or acquisition or proposed merger or acquisition, or the like. 
 12.5 Remedies. Each party agrees that any violation or
threatened violation of this Agreement may cause irreparable injury to the other party, entitling the other party to seek injunctive relief in addition to all legal remedies. 
 13. LIMITATION OF LIABILITY. EXCEPT FOR ANY BREACH OF SECTION 4.3 OR 12, AND EXCEPT FOR ANY
INDEMNIFICATION OBLIGATIONS UNDER SECTION 11, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INCIDENTAL, INDIRECT, SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO DAMAGES FOR LOST DATA, LOST
PROFITS, DOWNTIME OR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, HOWEVER CAUSED AND ARISING UNDER ANY THEORY OF LIABILITY, INCLUDING BUT NOT LIMITED TO CONTRACT OR TORT (INCLUDING PRODUCTS LIABILITY, STRICT LIABILITY AND NEGLIGENCE), AND
WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
 EXCEPT FOR ANY BREACH OF SECTION 4.3 OR 12, IN NO EVENT SHALL ST’S
CUMULATIVE LIABILITY ARISING OUT OF THIS AGREEMENT EXCEED [...***...]. 
 EXCEPT FOR ANY BREACH OF SECTION 4.3 OR 12, IN NO EVENT SHALL RFM’S
CUMULATIVE LIABILITY ARISING OUT OF THIS AGREEMENT EXCEED [...***...]. 
 THE FOREGOING LIMITATIONS IN THIS ARTICLE 13 SHALL APPLY NOTWITHSTANDING THE
FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY STATED IN THIS AGREEMENT. 
  

	 	14.	MISCELLANEOUS. 

 14.1 Inherently
Dangerous Applications. The IC Design and IC Design File are not designed or authorized for use in the manufacture of Products for use in life support appliances, devices, or systems where malfunction of a Product can reasonably be expected to
result in a personal injury or for use in aviation, nuclear or any other inherently dangerous application. ST and its customers using or selling Products for use in such applications do so at their own risk. 
  

 - 10 - 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 14.2 Joint Press Release. Subject to Section 12, neither party shall make any
announcement or press release regarding this Agreement or any terms thereof without the other Party’s prior written consent. 
 14.3
Assignment. Neither party may assign or otherwise transfer this Agreement or any rights under this Agreement, in whole or in part, whether voluntarily or by operation of law without the other party’s prior written consent.
Notwithstanding the foregoing, REM shall have the right to assign, whether voluntarily or by operation of law, without prior written consent in the event of a transfer of all or substantially all of RFM’s business or assets whether by asset
acquisition, merger, consolidation or otherwise (“Acquisition”). Notwithstanding any other provision in this Agreement, in the event RPM assigns this Agreement in connection with an Acquisition to a third party
(“Acquirer”): [...***...]. Subject to the foregoing, this Agreement will be binding upon and will inure to the benefit of the parties and their respective successors and assigns. Any assignment in violation of this
Section 14.3 will be null and void. 
 In the event of an Acquisition by an Acquirer that is a [...***...] company that has a closing date before
March 1, 2004 (“Closing Date”), ST would have the option to terminate this Agreement upon written notice to RFM within [...***...] after the Closing Date; provided that any such termination would only take effect
[...***...] after the Closing Date (“Option”). If ST exercises the Option, Section 5.1 would terminate; provided, however, that during the Exclusive Period, ST would not, without RFM’s prior written consent, sell or
otherwise distribute, whether directly or indirectly, any products that in the parties’ reasonable judgment compete with the Products. 
 14.4 Governing Law. This Agreement shall be governed, construed and enforced in accordance with the laws of the State of New York and the United States of America, without reference to conflict of laws principles and without regard
to the United Nations Convention on Contracts for the International Sales of Goods. 
 14.5 Dispute. The parties shall attempt in good
faith to resolve any dispute or claim arising out of or in connection with this Agreement or the performance, breach or termination thereof (“Dispute”). Any Dispute not resolved by mutual agreement pursuant to the foregoing sentence within
a period of sixty (60) days after the date of delivery of first written notice of the Dispute from one party to the other party describing the Dispute in reasonable detail will be submitted by the parties to binding arbitration before an
arbitral tribunal consisting of three arbitrators appointed in accordance with the Rules of Arbitration of the International Chamber of Commerce (ICC). The arbitration tribunal, including all staff, all witnesses, and any permitted attending
non-parties, shall be legally bound by agreements and/or orders to prevent disclosure of any information which may be disclosed to them in connection with arbitration proceedings conducted under this Section 14.5. The arbitration shall take
place in the city of New York, New York, United States of America in the English language and according to the Rules of Arbitration of the ICC. The arbitrators shall apply the laws of the State of New York and the United States of America, without
reference to conflict of laws principles, to the merits of the dispute and in all cases shall decide in accordance with the terms of this Agreement. The arbitral decision and award shall be final and binding. The arbitral decision and award shall be
final and binding and shall deal with the questions of costs of arbitration an all matters related thereto. Any costs, fees or taxes involved in enforcing the award shall be fully assessed against and paid by the party resisting enforcement of the
award. Notwithstanding the foregoing, either party may apply to any court of competent jurisdiction for injunctive relief without breach of this arbitration provision. Judgment on the award rendered by the arbitrators may be entered in any court
having jurisdiction thereof. 
 14.6 Subcontractor. RFM has the right to use third party contractors to exercise its rights and
fulfill its obligations under this Agreement. 
 14.7 Independent Contractors. The relationship of the parties under this Agreement is
that of independent contractors. Neither party will be deemed to be an employee, agent, partner, franchisor, franchisee or legal representative of the other for any purpose and neither will have any right, power or authority to create any 

  

					
		 	- 11 -	 	

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 
obligation or responsibility on behalf of the other. ST shall not purport to take on any obligation or responsibility, or make any representations,
warranties, guarantees or endorsements to anyone, on behalf of RFM including, without limitation, relating to Products. 
 14.8
Severability and Headings. If any term, condition or provision of this Agreement is held to be invalid, unlawful or unenforceable to any extent by a court of competent jurisdiction, then the parties agree to negotiate in good faith a
substitute, valid and enforceable provision that most nearly effects the parties’ intent and to be bound by mutually agreed substitute provision. If the parties fail to agree on such an amendment, such invalid term, condition or provision will
be severed from the remaining terms, conditions and provisions, which will continue to be valid and enforceable to the fullest extent permitted by law. Headings used in this Agreement are provided for convenience only, and shall not in any way
affect the meaning or interpretation of this Agreement. 
 14.9 Negotiated Terms. The parties agree that the terms and conditions of
this Agreement are the result of negotiations between the parties and that this Agreement shall not be construed in favor of or against any party by reason of the extent to which any party or its professional advisors participated in the preparation
of this Agreement. 
 14.10 No Waiver. Any waiver of the provisions of this Agreement or of a party’s rights or remedies under
this Agreement must be in writing to be effective. Failure, neglect or delay by a party to enforce the provisions of this Agreement or its rights or remedies at any time, will not be construed as a waiver of such party’s rights under this
Agreement and will not in any way affect the validity of the whole or any part of this Agreement or prejudice such party’s right to take subsequent action. No exercise or enforcement by either party of any right or remedy under this Agreement
will preclude the enforcement by such party of any other right or remedy under this Agreement or that such party is entitled by law to enforce. 
 14.11 Force Majeure. Neither party will be liable to the other party on account of any loss or damage resulting from any delay or failure to perform all or any part of this Agreement if such delay or failure is caused, in whole or in
part, by events, occurrences, or causes beyond the control and without negligence of the parties (“Force Majeure Event”). Such events, occurrences, or causes will include, without limitation, acts of God, strikes, lockouts, riots, acts of
war, earthquake, fire and explosions, but the inability to meet financial obligations is expressly excluded. The party affected by Force Majeure Event shall inform promptly the other party in writing of the Force Majeure Event’s occurrence,
anticipated duration and cessation. 
 14.12 Language. This Agreement is in the English language only, which language shall be
controlling in all respects, and all versions hereof in any other language shall not be binding on the parties hereto. All communications and notices to be made or given pursuant to this Agreement shall be in the English language. 
 14.13 U.S. Export Control. ST understands and acknowledges that RPM is subject to regulation by agencies of the U.S. Government, including, but
not limited to, the U.S. Department of Commerce, which prohibit export or diversion of certain products and technology to certain countries. Any and all obligations of RFM to provide RFM Materials or any media in which any of the foregoing is
contained, as well as any other technical information and assistance shall be subject in all respects to such United States laws and regulations as shall from time to time govern the license and delivery of technology and products abroad by persons
subject to the jurisdiction of the United States, including the Export Administration Act of 1979, as amended, any successor legislation, and the Export Administration Regulations issued by the Department of Commerce, Bureau of Export
Administration. ST agrees to cooperate with RFM, including, without limitation, providing required documentation, in order to obtain export licenses or exemptions therefrom. ST warrants that it will comply with the Export Administration Regulations
and other United States laws and regulations governing exports in effect from time to time. 
 14.14 Compliance with Laws. ST shall at
all times conduct its efforts hereunder in strict accordance with all applicable laws, rules, policies, directives and regulations. 

					
		 	- 12 -	 	

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 14.15 Notices. Any notice required or permitted under the terms of this Agreement or required
by law must be in writing and must be: (a) delivered in person, (b) sent by first class registered mail, or air mail, as appropriate, or (c) sent by overnight air courier, in each case properly posted and fully prepaid to the
appropriate address set forth below. Either party may change its address for notice by notice to the other party given in accordance with this Section. Notices will be considered to have been given at the time of actual delivery in person, seven
(7) calendar days after deposit in the mail as set forth above, or two (2) calendar days after delivery to an overnight air courier service. 
  

			
	STMicroeletronics N.V.	  	RF Magic Inc.
	39, Chemin du Champ des Filles	  	10182 Telesis Court, 4th Floor
	1228 Plan-les-Ouates	  	San Diego, California 92121-4777
	Geneva, Switzerland	  	Attention:                                     
   
	Attention: General Counsel	  	
		
	With a copy to:	  	With a copy to
		
	STMicroelectronics, Inc.	  	RF Magic Inc.
	1310 Electronics Drive, MS 2346	  	10182 Telesis Court, 4th Floor
	Carrollton, Texas 75006	  	San Diego, California 92121-4777
	Attention: General Counsel	  	Attention:                                     
   

 14.16 Entire Agreement. This Agreement (including the Exhibits, Appendices, and any addenda
hereto signed by both parties) contains the entire agreement of the parties with respect to the subject matter of this Agreement and supersedes all previous communications, representations understandings and agreements, either oral or written,
between the parties with respect to said subject matter. No terms, provisions or conditions of any purchase order, acknowledgment or other business form that either party may use in connection with the transactions contemplated by this Agreement
will have any effect on the rights, duties or obligations of the parties under, or otherwise modify, this Agreement, regardless of any failure of a receiving party to object to such terms, provisions or conditions. This Agreement may not be amended,
except by a writing signed by both parties. 
 14.17 Execution in Counterparts. This Agreement and any Exhibits hereto may be executed
in counterparts, each of which will be deemed an original and all of which together will constitute one instrument. 
 IN WITNESS WHEREOF,
the parties by their duly authorized representatives have executed this Agreement as of the Effective Date. 
  

					
	RF Magic, Inc.	 		 	STMicroelectronics N.V.
			
	 /s/ Mark H. Foley
	 		 	 /s/ Mr. Geyees

	Signature	 		 	Signature
			
	 Mark H. Foley
	 		 	 Mr. Geyees

	Printed Name	 		 	Printed Name
			
	 CEO and President
	 		 	 Corporate Vice President

	Title	 		 	Title
			
	  
	 		 	 June 2, 2003

	Date	 		 	Date

					
		 	- 13 -	 	

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 EXHIBIT A 
 DEVELOPMENT PLAN 
 [None] 
  

					
		 	1	 	

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 EXHIBIT B 
 DEVELOPMENT SCHEDULE 
 [None] 
  

					
		 	1	 	

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 EXHIBIT C 
 SPECIFICATIONS 
 [...***...] 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 EXHIBIT D 
 EXISTING RF PRODUCT, ROYALTIES AND EXCLUSIVE PERIOD 
 ST EXISTING RF
PRODUCT: “ST Existing RF Product” means [...***...]. 
 ROYALTIES: 
 For each Product sold by ST to a third party, ST shall pay RFM the Royalties for such Product. 
 “Royalties” means, with respect to each Product shipped or otherwise delivered by ST to a third party, the greater of (i) [...***...], or (ii) [...***...] for such Product.

 “Minimum Royalty” means, with respect to each Product, the minimum royalty amount to be paid by ST to RFM, as mutually agreed upon in
writing by the parties. Prior to the first shipment of Product by ST to a Customer, the parties shall negotiate in good faith and agree in writing upon the Minimum Royalty. Thereafter, the parties shall negotiate in good faith and agree in writing
upon a revised Minimum Royalty prior to, and effective on, [...***...]. In the event the parties do not agree on a revised Minimum Royalty prior to [...***...] pursuant to the foregoing sentence, [...***...]. 
 “Gross Margin” means, with respect to each Product, Gross Sales minus Product Price. 
 “Product Cost” means, the calendar year price set forth in the table below [...***...]. 
  

			
	2003	  	[...***...]
	2004	  	An amount to be mutually agreed upon by the parties in writing at least [...***...], but in no event no less than [...***...]. In the event the parties do not agree on an amount
pursuant to the preceding sentence, then RFM may, at its option, [...***...] upon written notice to ST.
	2005 and thereafter	  	With respect to each applicable calendar year, an amount to be mutually agreed upon by the parties in writing at least [...***...], but in no event to exceed [...***...]. In the
event the parties do not agree on an amount pursuant to the preceding sentence, then RFM may, at its option: (i) [...***...], or (ii) [...***...].

 “Gross Sales” means, with respect to each Product, the total amount invoiced to third parties for
such Product by ST or its Affiliates. 
 ST and its Affiliates shall use reasonable efforts to maximize Gross Sales for the Products. In the event that ST or
its Affiliates sell Products to a third party who also purchases other products or services from ST or its Affiliates, ST shall not, and shall require its Affiliates not to, discount the purchase price of the Products to a greater degree than ST or
its Affiliates, respectively, generally discounts the price of its other products or services to such third party. For purposes of this provision “discounting” includes, without limitation, establishing the list price at lower than
ST’s normal pricing level. Without limiting the foregoing, ST shall not, and shall require its Affiliates not to, treat Products in such a manner that would disadvantage the Product in comparison with other products or services offered for sale
by ST or its Affiliates. 
 During the Exclusive Period, if ST in good faith believes, with respect to a particular sale of Products to a Customer, that: (i)
ST must reduce the price to such Customer compared to the price at which ST otherwise sells Products in order to meet an equally low price of a competitor; and (ii) ST could not reduce such price to its Customer and maintain a reasonable profit on
such sale, then ST shall be entitled to request that RFM reduce the effective Minimum Royalty on such Products to ST for such Customer. Upon RFM’s receipt any other relevant information (excluding manufacturing costs) that RFM may reasonably
request, RFM may provide to ST a proposal as to the Minimum Royalty RFM is prepared to charge for such Products to ST in order to permit ST to make a competitive bid to such Customer. 
  

					
		 	1	 	***Confidential Treatment Requested

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
  

 EXCLUSIVE PERIOD: 
 “Exclusive Period” means, collectively, the Initial Restriction Period and any Additional Restriction Period. 
 “Initial Restriction Period” means [...***...]. 
 “Additional Restriction Period” means the [...***...] period immediately following the expiration of the Initial Restriction Period; provided, however, that ST sells and ships to a third party (other than an
Affiliate) at least [...***...] units of Products during each [...***...] period commencing on [...***...] and thereafter upon each [...***...] until expiration of such [...***...]. For the purposes of clarification, if
ST does not ship and sell at least [...***...] units of Product in any such [...***...]. 
 Notwithstanding any other provision in his Agreement,
the Exclusive Period shall immediately and automatically terminate in the event (i) the relationship of the parties under this Agreement for ST and the Affiliates to manufacture and sell the Products is [...***...], and
(ii) [...***...]. 
  

					
		 	2	 	***Confidential Treatment Requested

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