Document:

exv10w20a

 

Exhibit 10.20A

SONICS, INC.

RESTATED AND AMENDED

TECHNOLOGY LICENSE AGREEMENT

FOR TOSHIBA*

     This Restated and Amended Technology License Agreement (the “Agreement”) is entered into this
26th day of March, 2003 (the “Effective Date”) its date of actual execution notwithstanding by and
between Sonics, Inc., a Delaware corporation with principal offices at 2440 West El Camino Real,
Suite 600, Mountain View, California 94040 (“Sonics”), and Toshiba Corporation, a Japanese
corporation with principal offices at 1-1, Shibaura 1-Chome, Minato-Ku, Tokyo 105-8001, Japan
(“Licensee”).

     WHEREAS, Sonics develops and licenses intellectual properties (“IP”) in the field of on chip
or system on chip (“SOC”) communication networks that connect IP cores used by Licensee to
optimize, improve, configure and automate on-chip communications;

     WHEREAS, Licensee wishes to license certain Sonics products as listed in the Technology
Schedule attached to this Agreement, which Technology Schedule shall be governed by the terms and
conditions of this Agreement;

     WHEREAS Sonics and Licensee have previously entered into a licensing agreement for Sonics
technology with an effective date of March 29, 2002 for use in the development and design of
Licensee’s Valiant Device (“Valiant Agreement”), and Sonics and Licensee desire that the Valiant
Device continue to be governed by the provisions of the Valiant Agreement;

     WHEREAS, Sonics and Licensee’s Subsidiary, Toshiba America Electronics Components, Inc.
(“TAEC”), have previously entered into a licensing agreement for Sonics technology with an
effective date of March 30, 2002 (“TAEC Agreement”), and Sonics and Licensee desire to, and upon
the Effective Date of this Agreement hereby do, terminate the TAEC Agreement (subject to the
agreement of TAEC), provided, however, that (i) any provisions of the TAEC Agreement that survive
under the terms of the TAEC Agreement shall not be affected by the termination herein, and (ii)
TAEC may continue to design and develop the Hidden Dragon Device under the terms and conditions of
this Agreement; and

     WHEREAS the parties entered into a Technology License Agreement with an effective date of
March 26, 2003 (the “Original TLA”), which the parties wish to modify to reflect changes acceptable
to both;

     NOW, THEREFORE, THE PARTIES HERETO AGREE TO AMEND AND RESTATE THE ORIGINAL TLA AS FOLLOWS:

1. Definitions. 

     1.1 “ASP” means the average selling price of the Device as determined by the aggregate
Net Sales realized by Licensee during a given calendar quarter divided by the net quantity
(shipments less returns) of the Device Sold during the same calendar quarter. When a non-Toshiba
fabrication facility (except for the fabrication facilities Licensee controls by stock ownership or
contract. such fabrication facility, “Non-Toshiba Fabrication Facility”) is used to produce
Devices, the term “Licensee” in this Section 1.1 shall be substituted with “Sublicensee,” as
necessary, in order to calculate royalty amounts due under this Agreement.

 

			
	*  [***]:	 	Certain information in this document has been
omitted and filed separately with the Commission. Confidential treatment has
been requested with respect to the omitted portions.

					
	 	 	 	 	 
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     1.2 “Commencement Notice” means the formal, written notice from Licensee to Sonics
informing Sonics of the beginning of a new design project by Licensee, a Subsidiary, or a
Sublicensee using the Deliverables in substantially the form attached hereto as Exhibit C.

     1.3 “Confidential Information” means all technical, financial, commercial, legal or
other information disclosed in writing under this Agreement which is clearly marked at the time of
disclosure as being “Confidential” or “Proprietary,” in whatever form or media, that is not
generally known to the public, and includes, without limitation, the Deliverables, databases and
netlists generated with the Deliverables and the commercial intentions of the parties. Any
information disclosed orally shall be considered to be Confidential Information only if the
information is identified as Confidential Information at the time of disclosure and is then reduced
to writing, marked “Confidential” or “Proprietary” and transmitted to the receiving party within
thirty (30) days after such disclosure.

     1.4 “Deliverables” means those deliverables relating to the Licensed Technology
identified in the Technology Schedule including, without limitation, all Licensed Tools,
Documentation, Updates, copies, enhancements, and upgrades thereto, and all modifications of the
above that may be issued by Sonics from time to time as part of its Maintenance, regardless of the
form or media in or on which they may exist.

     1.5 “Device” means any semiconductor device (other than “Valiant”, the license for
which has been properly granted under the Valiant Agreement) developed by or for Licensee which
incorporates the Sonics Licensed Core, as described in the Technology Schedule. [***].

     1.6 “Documentation” means the descriptions, diagrams, specifications, technical notes,
manuals and designs including, without limitation, copies, Updates and modifications, regardless of
the form or media in or on which they may exist, related to the Licensed Technology.

     1.7 “Effective Date” shall be the date this Agreement is entered into by Licensee and
Sonics as indicated at the beginning of the Agreement.

     1.8 “Licensed Technology” shall mean, collectively, the Licensed Tools, the
Documentation, the Sonics Licensed Core, and other technical information to be provided under this
Agreement, including but not limited to, technical information related to Design Data, Synthesis &
Simulations, Timing Analysis and Verification & Test.

     1.9 “Licensed Tools” shall mean the tools used to generate the Sonics Licensed Core as
described in Section 2 entitled “Deliverables,” of the Technology Schedule.

     1.10 “Maintenance” shall have the meaning set forth in the Technology Schedule.

     1.11 “Net Sales” means the gross sales amount invoiced to customers of Licensee for
Devices, less amounts invoiced for returned goods for which a refund is given, and less charges for
insurance, handling, duty, freight and taxes where such items are included in the invoiced price.
Except for “Nonmarket Dispositions” subject to Section 5.3 of this Agreement, in the case of
Devices transferred within Licensee for resale, only the final sale by Licensee shall be included
in the Net Sales amount. Net Sales shall include the full fair market value of all Devices Sold
and shall not be reduced by any offsets or tradeoffs by Licensee against any amounts invoiced to
customers of Licensee for Devices. When a Non-Toshiba Fabrication Facility is used to produce
Devices, the term “Licensee” in this Section 1.11 shall be substituted with “Sublicensee,” as
necessary, in order to calculate royalty amounts due under this Agreement.

     1.12 “Sale” or “Sold” shall mean a transaction where Licensee (or any
Sublicensee of Licensee pursuant to Section 2.1(c) below) ships, sells, leases, transfers, or
otherwise disposes of Devices for fair value.

     1.13 “Sonics Intellectual Property Rights” means all patents, patent applications,
copyrights, and other intellectual property rights in all countries of the world, which are owned
by Sonics or licensed to Sonics with the right to grant sublicenses of the scope granted herein
without payment of royalties.

					
	 	 	 	 	 
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     1.14 “Sonics Licensed Core” shall mean the SiliconBackplaneTM MicroNetwork and/or
MemMaxTM Memory Scheduler, as described in the Technology Schedule, to be integrated into Licensee’s
Device, which is generated by using the Deliverables listed and described in the Technology
Schedule and licensed by Sonics to Licensee pursuant to the terms and conditions of this Agreement.

     1.15 “Sublicensee” shall mean a third-party customer (except for Subsidiaries, which
are properly and separately sublicensed under Section 2.1) of Licensee with whom Licensee has
agreed to cooperate in the design or manufacture of Devices for sale or distribution by Sublicensee
and with whom Licensee has entered into a Sublicense Agreement.

     1.16 “Sublicense Agreement” shall mean an agreement between Licensee and a third-party
(Sublicensee) granting such third-party some or all of the sublicense rights contained in Section
2.1(c) and further containing the minimum Sublicense Agreement provisions of Exhibit D hereto.

     1.17 “Subsidiary” means a corporation, company or other entity more than fifty percent
(50%) of whose outstanding shares or securities (representing the right to vote for the election of
directors or other managing authority) are, now or hereafter owned or controlled, directly or
indirectly, by Licensee.

     1.18 “Technology Schedule” shall mean the schedule attached hereto as Exhibit A. The
Technology Schedule shall be governed by and subject to all terms and conditions set forth in this
Agreement. The parties may execute subsequent Technology Schedules with later effective dates,
which shall form part of and be governed by and subject to all terms and conditions set forth in
this Agreement.

     1.19 “Term” means the duration of any license granted pursuant to this Agreement as
set forth in the Technology Schedule, unless sooner terminated in accordance with Section 7

     1.20 “Trademarks” shall mean all representations of Sonics’ name, product names,
markings and logos.

     1.21 “Updates” means any changes, corrections or additions to the Deliverables that
are made generally available by Sonics to its licensees during any period in which Licensee is
obtaining Maintenance from Sonics pursuant to Section 4.4 of this Agreement, and that are not
offered by Sonics, in its sole discretion, as separately priced new products or options to existing
products. For the sake of clarity, any updates, changes, upgrades, or modifications developed by
Sonics during the Term of this Agreement to the Licensed Technology shall be construed as an
Update, provided, however, that new products developed by Sonics with different architectures shall
not be construed as Updates.

2. License Grant.

     2.1 License. Subject to the terms and conditions of this Agreement, Sonics hereby
grants to Licensee a nonexclusive, nontransferable and worldwide license under Sonics Intellectual
Property Rights, to: (a) internally use the Deliverables for the design and development of Devices
and for the Term indicated in the Technology Schedule; (b) manufacture, have manufactured, sell,
import, and otherwise distribute and dispose of (subject to the payment of royalties under Section
5.2 below) the Devices developed under the license granted in Sections 2.1(a) and 2.8; and
(c) subject to the provisions of Section 2.10, sublicense to Sublicensees (i) the rights and
licenses in the same scope as granted in Sections 2.1 (a) and 2.8 and (ii) the rights to
manufacture, and have manufactured Devices and (iii) the rights to sell, import, and otherwise
distribute the Devices developed and manufactured under the licenses granted in Section 2.1(c)(i)
and (ii), and further subject to the payment of license fees and royalties under Section 5 below
and under Section 7 of the Technology Schedule. In addition, notwithstanding any provision to the
contrary elsewhere in this Agreement, Licensee shall have the right to sublicense to Subsidiaries
the rights and licenses in the same scope as granted to Licensee under this Agreement; provided
however, that such Subsidiaries shall agree to be bound by substantially the same terms as are
applicable to Licensee in this Agreement.

     2.2 Restrictions on Use.

					
	 	 	 	 	 
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          (a) The Deliverables may not be used for the development of aviation, medical, military,
nuclear, or any ultra hazardous applications. Licensee may use the Deliverables countries outside
of the United States or Japan (“Third Countries”). In addition to the compliance obligations of
both parties in connection with Section 8.11, Licensee shall use due-diligence to ensure compliance
with, and be responsible for obtaining at its own costs, any necessary governmental licenses,
registrations or permits for the use or transmittal of the Deliverables to Third Countries and
shall indemnify Sonics for any damages to Sonics arising out of the failure to obtain any such
necessary governmental licenses, registrations or permits.

          (b) Licensee may use, import, export, offer for sale, and sell or otherwise distribute the
Device only as provided in the Technology Schedule.

          (c) Licensee may use and copy the Deliverables internally solely for the purposes of
exercising its rights and performing its obligations under this Agreement, subject to the terms and
conditions of this Agreement.

          (d) Licensee may not reverse engineer any Deliverables not delivered in source format (the
“binary materials”) nor may Licensee decompile, disassemble, or otherwise reduce the binary
materials or any component thereof to human-readable or non-binary form.

          (e) The Deliverables may be placed on file server(s) only if access to such server(s) is
restricted to a known set of computer systems. For clarity, for the purpose of this subsection
(e), the “Deliverables” shall not include any RTL, test bench or similar technology, which is
automatically generated utilizing Sonics’ Tools, including, but not limited to, those as described
in Exhibit A 2. Deliverables.

          (f) The Deliverables shall be protected using, at a minimum, native operating system
permissions capabilities to restrict all access (including read access) to a known and specific
group of users, each of whom has a need to use the Deliverables, or using an equivalent system
which provides for similar protection of the Deliverables.

          (g) The Deliverables may be backed up only to a medium which is also protected as required for
other Deliverables.

          (h) Licensee shall prevent remote access to the Deliverables from other locations by any party
other than Licensee’s employees that need to have access. Should files move to another system,
whether or not remote, the same access limitations shall apply. For clarity, for the purpose of
this subsection (h), the “Deliverables” shall not include any RTL, test bench or similar technology
which is automatically generated utilizing Sonics’ Tools, including, but not limited to, those as
described in Exhibit A 2. Deliverables.

          (i) Licensee agrees to restrict access to the Deliverables solely to those of its employees
who have a need to use the information in performing Licensee’s duties and exercising Licensee’s
rights under this Agreement. As used in this Agreement, “access” means having the capability to
view, copy, display, print, transfer, or otherwise manipulate or have exposure to any tangible or
electronic form of the Deliverables. Licensee agrees to use its commercially reasonable efforts to
maintain a list of all individuals who at any time actually have access to or have had access to
the Deliverables or any portion thereof. Licensee agrees to comply with the requests of Sonics,
from time to time, to provide Sonics with such list.

     2.3 Proprietary Markings. To the extent practicable, Licensee shall take reasonable
actions to apply appropriate patent, copyright, trademark and other proprietary notices to protect
the Documentation and Sonics’ Confidential Information, as necessary and appropriate.

     2.4 Trademarks. Licensee shall not use any Sonics Trademarks without the prior
written approval of or except under a separate agreement with Sonics.

     2.5 Copying. No copies of the Deliverables, other than as permitted under Section
2.2(c) hereof, shall be made without Sonics’ prior written consent.

					
	 	 	 	 	 
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     2.6 Limitations. No license or other right is granted, by implication, estoppel or
otherwise, to Licensee under any patents, Confidential Information or other intellectual property
or proprietary rights now or hereafter owned or controlled by Sonics except for the licenses and
rights expressly granted in this Agreement. Licensee further acknowledges that, other than as
specifically provided herein, the scope of the license granted hereunder does not permit Licensee
to (a) disclose the source code of any aspect of the Deliverables, in whole or in part, to any
third party; (b) distribute the Deliverables to third parties; (c) sublicense or manufacture as a
standalone product the Deliverables (or any portion thereof); (d) modify the Deliverables (or any
portion thereof) except as expressly set forth in this Section 2; (e) translate, create derivative
works of or otherwise reproduce the Deliverables (or any portion thereof), except as expressly set
forth in this Section 2; (f) decompile, disassemble, reverse engineer or attempt to reconstruct,
identify or discover any source code, underlying ideas, underlying user interface techniques or
algorithms of the Deliverables (or any portion thereof) by any means whatsoever, or disclose any of
the foregoing; (g) provide, lease, lend, or use for timesharing or service bureau purposes the
Deliverables (or any portion thereof); (h) use or allow others to use the Deliverables for the
benefit of third parties except as provided in this Agreement; or (i) use the Deliverables to
develop functional equivalents of the Deliverables (or any portion thereof); provided, however,
Licensee retains the right to use other on-chip interconnection technology and to develop
proprietary technology for interconnecting cores, both of which are wholly independent of and
separate from the Deliverables.

     2.7 Confidentiality of Agreement. Except as expressly provided herein, each party
agrees that the terms and conditions of this Agreement and the Technology Schedule shall be treated
as confidential and that neither party will disclose the terms or conditions of this Agreement or
the Technology Schedule to any third party (excluding Subsidiaries and Sublicensees as provided
under Section 2.1 above, and independent contractors (as provided for in Section 2.8 below) without
the prior written consent of the other party, provided, however, that each party may disclose the
terms and conditions of this Agreement, to the extent necessary: (a) as required by any court or
other governmental body; (b) as otherwise required by law; (c) in confidence to legal counsel of
the parties, accountants, and other professional advisors; (d) in confidence, to banks, investors
and other financing sources and their advisors; (e) in connection with the enforcement of this
Agreement or rights under this Agreement; or (f) in confidence, in connection with an actual or
prospective merger or acquisition or similar transaction. With respect to disclosure required by a
court, governmental order or otherwise required by law, the party required to disclose shall
provide prior notification of such impending disclosure to the other party and use all reasonable
efforts to preserve the confidentiality of the terms of this Agreement and the Technology Schedule
in complying with such required disclosure, including obtaining a protective order to the extent
reasonably possible. With regard to disclosure to “other professional advisors” as provided in (c)
above or to the parties described in (d) above (collectively referred to herein as “Advisors”), the
disclosing party may disclose the terms and conditions of this Agreement and the Technology
Schedule to such Advisors provided such Advisors enter into written agreements under which they
agree to be bound by confidentiality obligations substantially similar to the provisions of this
Agreement.

     2.8 Independent Contractors. Sonics recognizes that Licensee may use one or more
independent contractors to design and develop the Device, and that Licensee shall have the right to
delegate responsibilities to such independent contractors provided, however, that prior to any
disclosure to such independent contractors of any of Sonics’ Confidential Information, such
independent contractors shall enter into written agreements under which they acknowledge and agree
(i) that the Deliverables and other Confidential Information of Sonics may be used only for the
design and development of the Device; (ii) that all work performed by such independent contractors
shall be wholly owned by Licensee; (iii) to be bound by provisions substantially similar to the
provisions of this Agreement; and (iv) that Sonics makes no warranties of any kind and assumes no
liability with respect to any third parties under this Agreement. Licensee shall, upon request,
inform Sonics of the identify of such independent contractors. When such independent contractors
are anything other than self-employed individuals, Licensee will submit an approval form in
substantially the form attached hereto as Exhibit B (the “Approval Form”), and will await Sonics’
approval before disclosing any Sonics Confidential Information to them. Sonics, for its part,
agrees that approvals shall not be unreasonably withheld or delayed.

     2.9 Liability for Third Party Actions. Notwithstanding any provision set
forth in this Agreement to the contrary, Licensee shall be liable for all actions undertaken by any
Sublicensees and Subsidiaries licensed pursuant to Section 2.1, by any independent contractors
pursuant to Section 2.8, or the misuse of Confidential information provided to third-parties under
Section 8.3.

					
	 	 	 	 	 
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     2.10 Additional Sublicense Restrictions. In addition to any other applicable
restrictions contained herein, Licensee may only exercise the rights to grant sublicenses to the
Licensed Technology in Section 2.1(c) to Sublicensees under the following conditions:

          (a) Licensee shall notify Sonics in advance of its desire to sublicense to a Sublicensee, and
Sonics shall (within a reasonable time) approve or disapprove, at Sonics sole discretion, such
sublicense, provided, however, that Sonics shall endeavor to approve all sublicenses to entities
that do not compete with Sonics’ technology or products or do not represent a risk to unauthorized
dissemination of the Licensed Technology or Confidential Information.

          (b) Any Sublicensee sublicensed shall enter into a Sublicense Agreement with Licensee
incorporating at a minimum the provisions in Exhibit D hereto and Sonics shall have access upon
written request to Licensee to all completed Sublicense Agreements, which shall be the Confidential
Information of Licensee, provided, however, that Licensee may redact from such Sublicense
Agreements any monetary terms or royalties paid by such Sublicensee.

          (c) Sonics shall issue and deliver any Deliverables to Sublicensees directly and Licensee
shall not be permitted to transfer Deliverables directly to Sublicensees.

3. Proprietary Ownership Rights.

     Except for the rights and licenses expressly granted to Licensee in this Agreement, and except
for any third party software which may be included as a part of the Deliverables and which Sonics
has the rights to license, Sonics retains all right, title, ownership and interest in and to the
Trademarks, Deliverables, the design techniques and Documentation associated therewith, including,
without limitation, all intellectual property rights embodied therein, and all subsequent copies,
modifications, revisions, upgrades and Updates of any of the foregoing, regardless of the form or
media in or on which the original and other copies may exist. This license shall not constitute a
sale of the Deliverables, the design techniques and Documentation associated therewith, or any
copies thereof.

4. Acceptance; Support.

     4.1 Delivery. Sonics shall deliver to Licensee the Deliverables subject to this
Agreement pursuant to the terms of delivery set forth in the Technology Schedule attached hereto.

     4.2 Acceptance. If Licensee does not provide written rejection of the Deliverables
within thirty (30) days after receipt of the Deliverables by Licensee, the Deliverables shall be
deemed accepted by Licensee. Licensee shall be entitled to finally refuse to accept the
Deliverables in the event that the Deliverables fail to perform in accordance with the accompanying
specifications or Documentation in any material respect and in the further event that such failure
cannot be reasonably remedied by Sonics within thirty (30) days following receipt of written notice
from Licensee.

     4.3 Return of Deliverables. The Deliverables shall be returned to Sonics within
thirty (30) days of the expiration or termination of this Agreement and Licensee shall thereafter
immediately destroy all copies of all Deliverables whether in electronic or any other form.

     4.4 Support. Sonics will provide Maintenance and support and Engineering Services
(as defined in the Technology Schedule) to Licensee as set forth in the Technology Schedule.
Sonics has no obligation to provide Licensee with Maintenance and support services or Engineering
Services other than as set forth in the Technology Schedule.

					
	 	 	 	 	 
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5. Fees and Royalties.

     5.1 License Fees. Licensee will pay Sonics a nonrefundable license fee as indicated
on the Technology Schedule for the licenses granted to Licensee, Subsidiaries or Sublicensees in
Section 2 of this Agreement according to the terms set forth in this Agreement and the Technology
Schedule.

     5.2 Royalties. Licensee shall pay to Sonics a royalty as indicated on the attached
Technology Schedule based on Net Sales of all Devices Sold by Licensee, Subsidiaries or
Sublicensees.

     5.3 Nonmarket Dispositions. In the event that a Device is Sold or disposed of in
circumstances in which the selling price is established on other than an arms length basis, “Net
Sales” shall be deemed to be the volume of the Device multiplied by the ASP (adjusted for refunded
returns and other adjustments as set forth in Section 1.10) earned by Licensee, Subsidiaries or
Sublicensees during such quarter on Sales of the Device to unaffiliated customers in arms length
Sales.

     5.4 Maintenance Fees. Licensee will pay Sonics a nonrefundable maintenance fee as
indicated on the Technology Schedule for the Maintenance and support provided to Licensee in
Section 4.4 of this Agreement according to the terms set forth in this Agreement and the Technology
Schedule. Sonics shall not have to provide Maintenance for any Devices for which it has not
received a Commencement Notice.

     5.5  Special Provision. [***].

6. Payment and Accounting.

     6.1 Records and Audits. With respect to the royalties set forth herein, Licensee
shall keep complete and accurate records. These records shall be retained for a period of three
(3) years from the date of payment (but no later than two (2) years after any termination of this
Agreement). Sonics shall have the right to examine and audit, at Sonics’ cost, through an
independent certified public accountant not more than once a year, during normal business hours and
with twenty (20) business days prior written notice, all such records. Prompt adjustment shall be
made to compensate for any errors and/or omissions disclosed by such examination or audit that
results in an underpayment or overpayment of royalties hereunder. Upon notice by Sonics of such
shortfall, Licensee shall pay Sonics the amount of such shortfall in full within thirty (30)
business days. If any such audit or inspection uncovers a shortfall in payments to Sonics of more
than five percent (5%) for the period being audited, Licensee agrees to pay Sonics interest at one
and one-half percent (1-1/2%) per month from the original due date, or the maximum rate permitted
by law for such late fee, whichever is less, and, in addition, Licensee agrees to reimburse Sonics
for that full auditing expense upon written request by Sonics.

     6.2 Reports and Payment Terms. Within forty-five (45) days after the end of each
fiscal quarter of Licensee, Licensee shall furnish to Sonics a statement showing the amount of Net
Sales, ASP (only in the case of Section 5.3) and royalties payable on Devices Sold. If no products
subject to royalty have been Sold or put into use, that fact shall be shown on such statement,
provided that, in no event shall Licensee be obligated to furnish such statement until the first
Sale of the Device occurs. Also, within such forty-five (45) day period, Licensee shall pay to
Sonics the royalties payable hereunder for such fiscal quarter. All royalty and other payments to
Sonics hereunder shall be in United States dollars. All royalties based on sales in currencies
other than United States dollars shall be converted to United States dollars according to the
official currency exchange rate quoted by Bank of Tokyo Mitsubishi on the date such payment is
made. The payment shall be transmitted by telegraphic wire transfer to the following bank account
or to such other bank account as Sonics may notify Licensee in writing:

Silicon Valley Bank

3003 Tasman Drive

Santa Clara, California 95054

ABA #121140399

For credit to: Sonics, Inc., Account #3300049070

					
	 	 	 	 	 
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     6.3 Taxes. The amount of any present or future sales, revenue, excise, levies or
other tax (excluding all taxes relating to Sonics’ income), withholding or duty applicable to the
products and/or services covered by this Agreement or the possession or use thereof imposed by any
country in any form whatsoever and of whatever nature, shall be added to the prices and fees hereof
and shall be paid by Licensee, or in lieu thereof Licensee shall provide Sonics with a tax
exemption certificate acceptable to the appropriate taxing authorities. Any income tax which
Licensee is required by law to pay or withhold on behalf of Sonics with respect to any fees payable
to Sonics under this Agreement may be deducted from the amount of such fees due, provided, however,
that in regard to any such deduction, Licensee shall furnish to Sonics the certificate evidencing
the deduction as soon as practicable after the actual tax payment.

     6.4 Invoices. Sonics shall submit invoices to Licensee for all sums, except for
royalties, due under this Agreement and Licensee shall pay such invoices within forty-five (45)
days of their receipt by Licensee.

7. Term and Termination.

     7.1 Term. The Term of this Agreement shall be as set forth in the Technology
Schedule, unless sooner terminated in accordance with this Section 7. Any and all renewals of any
Term with regard to the Technology Schedule shall be subject in their entirety to the terms and
conditions of this Agreement.

     7.2 Breach. If either party breaches a material provision of this Agreement and does
not (a) cure such breach within fifteen (15) days after written notice from the non-breaching
party, and (b) provide the non-breaching party with written notice of such cure, the non-breaching
party shall have the right at its option to terminate this Agreement immediately and all licenses
granted hereunder shall be deemed immediately terminated.

     7.3 Insolvency. Should either party (a) become insolvent, (b) make an assignment for
the benefit of creditors, (c) file or have filed against it a petition in bankruptcy or seeking
reorganization which is not dismissed within sixty (60) days, (d) have a receiver appointed or (e)
institute any proceedings for liquidation or winding up, then the other party may, at its option
and in addition to other rights and remedies it may have, terminate this Agreement immediately by
written notice and all licenses granted hereunder shall be deemed immediately terminated upon
receipt of such notice.

     7.4 Consequences of Termination. Upon termination of this Agreement, the licenses and
rights granted hereunder and the obligations imposed hereunder shall cease except as otherwise
expressly set forth herein. Upon termination, Licensee shall immediately return to Sonics the
Deliverables, including all copies thereof. Sonics will not be liable to Licensee for damages of
any sort solely as a result of terminating this Agreement in accordance with its terms, and
termination of this Agreement will be without prejudice to any other right or remedy of either
party.

8. General Provisions.

     8.1 Limited Warranty. Sonics warrants that, for a period of ninety (90) days from
shipment of the Deliverables, such Deliverables will be free from defects under normal use and that
the unmodified Deliverables will meet Sonics’ published specifications. Sonics’ obligations under
this warranty, at Sonics’ option, are limited to promptly providing the Licensee with a copy of
corrected Deliverables (or portion thereof) or refunding the license fee and any maintenance fees
paid hereunder related to such defective Deliverables. EXCEPT AS EXPRESSLY PROVIDED FOR HEREIN,
THE DELIVERABLES AND CONFIDENTIAL INFORMATION PROVIDED BY SONICS TO LICENSEE ARE PROVIDED “AS IS”
WITHOUT WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO ANY
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT OF
THIRD PARTY RIGHTS.

     8.2 Indemnity for Infringement.

          (a) Indemnification. Sonics will [***] Licensee, Subsidiaries and Sublicensees
against any liability resulting from any claim or action against Licensee, Subsidiaries and
Sublicensees asserting that the Deliverables and/or the Sonics Licensed Core infringe any U.S.,
Japan, Taiwan or European Union copyright or any patent duly issued in the U.S., Japan, Taiwan or
the European Union or, to Sonics’ knowledge, any trade secret or other intellectual property
rights, provided [***].

          (b) Remedies. Should use of the Deliverables or the Sonics Licensed Core be found to
infringe [***].

          (c) Exclusions. Sonics shall have no liability for, and Licensee shall defend and
indemnify Sonics and its majority-owned subsidiaries from any third party claims made against
Sonics to the extent such claims arise out of [***].

          (d) [***].

					
	 	 	 	 	 
	SONICS/TOSHIBA CONFIDENTIAL
	 	 
	 	EXECUTION COPY

8

 

          (c) [***].

          (d) [***].

     8.3 Confidentiality.

          (a) Nondisclosure. Licensee and Sonics shall each maintain in confidence all
Confidential Information communicated, discussed, delivered or made available to it by the other
party, and except as required to fulfill the purposes of this Agreement, shall not use or disclose
such Confidential Information to any third party, firm or corporation, including any agent,
affiliate, subsidiary, consultant, customer, potential customer, independent contractor or
subcontractor of the parties, without the prior written consent of the disclosing party, provided
that, Licensee may disclose Confidential Information to Subsidiaries and Sublicensees sublicensed
pursuant to Section 2.1 above and independent contractors pursuant to Section 2.8, provided, such
Subsidiaries, Sublicensees and independent contractors agree to be bound by the confidentiality
obligations set forth under this Agreement. Notwithstanding the foregoing, the receiving party may
disclose the Confidential Information to its employees with a need to know such information,
provided each employee shall be obligated in writing to keep such information confidential.
Licensee may at anytime disclose written portions of Confidential Information to customers on a
need-to-know basis to the extent deemed necessary by Licensee to market, sell and/or manufacture
Devices for such customers provided such customer agrees to be bound by terms at least as
restrictive as those set forth in the Agreement. Nothing in the foregoing sentence shall permit
Licensee to transfer software contained in the Licensed Technology, the Licensed Tools, or the
Sonics Licensed Core to third-parties, except as expressly permitted in Article 2. The obligations
in this paragraph shall not apply if and to the extent the receiving party establishes that the
Confidential Information:

               (i) was already known to the receiving party prior to its first receipt of the same from the
disclosing party;

               (ii) was in the public domain on the Effective Date or is subsequently placed in the public
domain by the disclosing party;

               (iii) was received by the receiving party in good faith from a third party lawfully in
possession thereof and without an obligation of confidentiality to the disclosing party and without
breach of this Agreement;

               (iv) was developed independently by the receiving party’s employees or subcontractors who have
not had access to any of the disclosing party’s Confidential Information;

               (v) was required by law to be disclosed, provided that notice of such legally required
disclosure is delivered to the disclosing party prior to disclosure so that the disclosing party
may contest such disclosure; or

               (vi) was approved for release in advance and in writing by the disclosing party.

          (b) Copy. The receiving party shall not directly or indirectly cause or permit any
Confidential Information to be copied or reproduced unless such copy or reproduction is necessary
to fulfill the purposes of this Agreement. Any such copy shall be marked confidential and, when
appropriate, marked as proprietary to the disclosing party.

          (c) No Right. Nothing in this Agreement shall confer upon the receiving party any
right, title, interest or license in or to any Confidential Information received from the
disclosing party, except and to the extent otherwise expressly stated in this Agreement.

          (d) Term. The obligations imposed by this Section 8.3 shall expire, with respect to
any Confidential Information, ten (10) years after the receipt of such Confidential Information by
the receiving party. Upon expiration or termination of this Agreement, the receiving party shall
return to the disclosing party all

					
	 	 	 	 	 
	SONICS/TOSHIBA CONFIDENTIAL
	 	 
	 	EXECUTION COPY

9

 

Confidential Information received from the disclosing party, together with any copies thereof
in written or other tangible form, in the possession or control of the receiving party, its agents,
affiliates or subcontractors, or shall certify in writing that all Confidential Information and any
copies in written or other tangible form have been destroyed.

          (e) Compliance. The receiving party shall take all reasonable steps to ensure
compliance of its directors, officers, employees, and subcontractors with the confidentiality
provisions of this Agreement. Without limiting the foregoing, the receiving party agrees to take
any step that the disclosing party reasonably requests to ensure compliance with this Section 8.3.

          (f) Relief. The receiving party acknowledges that any disclosure, or use of the
Confidential Information or any part thereof, except as expressly permitted under this Agreement,
shall diminish substantially the value to the disclosing party of its proprietary rights and
interests and that legal remedies in such circumstances would be wholly inadequate. In such
instance, the receiving party agrees that the disclosing party shall be entitled to seek equitable
relief to protect its interest in and to the Confidential Information or any part thereof,
including, but not limited to, seeking injunctive relief and/or the receiving party’s compliance
with the provisions of this Agreement, as well as monetary and other damages available to it under
any applicable law.

          (g) Access to Deliverables. Licensee agrees that the Deliverables furnished hereunder
shall be treated as proprietary trade secrets of Sonics. Licensee shall use the same care for
protecting Sonics proprietary trade secrets as Licensee uses for protecting its own proprietary
trade secrets, but in no event less than reasonable care. Licensee represents that it maintains a
reasonable system to protect its own confidential business information, including written
agreements with its employees, and that the Deliverables will be protected by such system to the
same extent.

     8.4 Solicitation. Licensee and Sonics each agrees that it shall not, for a period of
two (2) years from the Effective Date, solicit or induce any of the other party’s employees to
leave the other party’s employment. Notwithstanding the foregoing, a party may hire any of the
other party’s employees who voluntarily applies to that party without solicitation or inducement by
that party.

     8.5 Severability. If any provision of the Agreement is held to be ineffective,
unenforceable or illegal for any reason, such decision shall not affect the validity or
enforceability of any or all of the remaining portions thereof.

     8.6 Nonassignment. Neither this Agreement nor any interest therein or part thereof
shall be transferable or assignable by either party, by operation of law or otherwise, without the
other party’s prior written consent.

     8.7 Damage Limitation. INDEPENDENT OF ANY REMEDY LIMITATION HEREOF, AND REGARDLESS OF
WHETHER THE PURPOSE OF SUCH REMEDY IS SERVED, IT IS AGREED THAT IN NO EVENT SHALL EITHER PARTY BE
LIABLE FOR ANY LOSS OF PROFITS, LOSS OF BUSINESS, LOSS OF REVENUE, INTERRUPTION OF SERVICE,
INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES OF ANY KIND UNDER THIS
AGREEMENT, EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO
EVENT WILL SONICS’ AGGREGATE LIABILITY UNDER ANY LEGAL THEORY RELATED TO THIS AGREEMENT EXCEED AN
AMOUNT EQUAL TO TWO (2) TIMES THE AGGREGATE AMOUNT OF LICENSE FEES PAID BY LICENSEE TO SONICS
HEREUNDER FOR THE INFRINGING DEVICE DESIGN.

     8.8 Governing Law. This Agreement shall be governed by and enforced in accordance with
California law as applied to contracts entered into in California by California residents to be
performed entirely within the State of California and exclusive of any law or principle that would
apply the law of any other jurisdiction. The parties shall strive to settle any dispute,
controversy or claim arising from or in connection with the interpretation or performance of this
Agreement through amicable consultations. In case no settlement can be reached through such
consultations, the dispute, controversy or claim shall then be settled under the rules of
Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators
appointed in accordance with these rules. The arbitration shall be held in Santa Clara County,
California. The arbitration proceedings and all pleadings, documents, correspondence and the
arbitration award shall be in English. The arbitration award shall be final and binding upon the
parties and shall be enforceable in accordance with its terms.

					
	 	 	 	 	 
	SONICS/TOSHIBA CONFIDENTIAL
	 	 
	 	EXECUTION COPY

10

 

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

     8.10 Other Licenses. Nothing contained in this Agreement shall be construed as
conferring by implication, estoppel or otherwise upon either party hereunder any license or other
right except the licenses and rights expressly granted hereunder to a party hereto.

     8.11 Export. Neither party shall export or re-export, directly or indirectly, any
technical information disclosed hereunder or direct product thereof to any destination prohibited
or restricted by the export control regulations of Japan or the United States, including the U.S.
Export Administration Regulations, without the prior authorization from the appropriate
governmental authorities. Each party hereby certifies that such party will not use technical
information supplied by the other party hereunder for any purpose to develop or manufacture
nuclear, chemical or biological weapons or missiles (hereafter “weapons of mass destruction”) nor
for any other military purpose. Each party further certifies that it will not sell any products
manufactured using the other party’s technical information to any party if it knows that the
end-user of the products will use them for the development and/or manufacture of weapons of mass
destruction and/or for any other military purpose.

     8.12 Entire Agreement. This Agreement and its Exhibits contain the entire Agreement
and understanding between the parties with respect to the subject matter hereof and merges and
supersedes all prior oral and written agreements, understandings and representations. No addition
or modification to this Agreement is valid unless made in writing and signed by both parties
hereto.

     8.13 Conflict. In the event the terms and conditions of any Exhibit shall conflict,
or be inconsistent, with the terms and conditions of this Agreement, such Exhibit will be the
controlling document.

     8.14 Survival. The provisions of the sections entitled Section 1 (Definitions), 2.1
(License (paragraph (b) only)), Section 2.2 (Restrictions on Use), Section 2.3 (Proprietary
Markings), Section 2.5 (Copying), Section 2.6 (Limitations), Section 2.7 (Confidentiality of
Agreement), Section 2.8 (Independent Contractors), Section 2.9 (Liability for Third Party Actions),
Section 2.10 (Additional Sublicense Restrictions), Section 3 (Proprietary Ownership Rights),
Section 5 (Fees and Royalties), Section 6 (Payment and Accounting), Section 7.4 (Consequences of
Termination), Section 8.1 (Limited Warranty), Section 8.2 (Indemnity for Infringement), Section 8.3
(Confidentiality), Section 8.4 (Solicitation), Section 8.5 (Severability), Section 8.6
(Nonassignment), Section 8.7 (Damage Limitation), Section 8.8 (Governing Law), Section 8.9
(Waiver), Section 8.10 (Other Licenses), Section 8.11 (Export), Section 8.12 (Entire Agreement),
Section 8.13 (Conflict), Section 8.14 (Survival), Section 8.16 (Heading), Section 8.17 (No Agency)
and Section 8.19 (Notice) shall survive the expiration or termination of this Agreement.

     8.15 Force Majeure. Neither party shall be responsible or liable to the other party
for failure or delay in the performance of any of its obligations under this Agreement for the time
and to the extent such failure or delay is caused by riots, civil commotion, wars, hostilities
between nations, governmental laws, orders or regulations, embargoes, actions, by any government or
any agency thereof, acts of God, earthquakes, storms, fires, accidents, strikes, sabotages,
explosions, or other similar or different contingencies beyond the reasonable control of the
respective parties hereto. If, as a result of legislation or governmental action, either party or
both parties are precluded from receiving any benefit to which they are entitled hereunder, the
parties hereto shall review the terms of this Agreement so as to restore such party or parties to
the same relative positions as previously obtained or contemplated hereunder.

     8.16 Headings. The headings of the Sections hereof are inserted for reference only
and shall have no effect on the interpretation of this Agreement.

     8.17 No Agency. Nothing herein contained shall be construed to constitute the parties
hereto as partners or joint ventures or the agent of another party in any sense of those terms
whatsoever. Neither party assumes any liability of the other party nor shall have any authority to
enter into any binding obligation on behalf of the other party.

					
	 	 	 	 	 
	SONICS/TOSHIBA CONFIDENTIAL
	 	 
	 	EXECUTION COPY

11

 

     8.18 Multiple Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, but such counterparts together shall constitute only one
and the same instrument.

     8.19 Notice. Unless either party notifies the other of a different address, any
notice or other communication required or permitted hereunder shall be sufficiently given, if sent
by overnight delivery, registered mail, postage prepaid, return receipt requested, addressed as
follows:

	 	 	 
	For Sonics:

	 	For Licensee:
	 
	 	 
	Sonics, Inc.

	 	Toshiba Corporation
	2440 W. El Camino Real, Ste. 600

	 	580-1, Horikawa-cho,
	Mountain View, CA 94040

	 	Saiwai-ku,
	 

	 	Kawasaki 212-8520
	Attention: President

	 	JAPAN
	w/copy to: Director, Legal Affairs

	 	Attention: General Manager, System LSI Design Dept., System
LSI Division, Semiconductor Company w/copy to: General Manager, Legal Affairs & Contracts Division,
Semiconductor Company

					
	 	 	 	 	 
	SONICS/TOSHIBA CONFIDENTIAL
	 	 
	 	EXECUTION COPY

12

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by duly
authorized officers or representatives as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	SONICS, INC.	 	 	 	TOSHIBA CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Martin Kovacich
 

	 	 	 	By:
	 	/s/ Shigeo Koguchi
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name: Martin Kovacich	 	 	 	Name: Shigeo Koguchi	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title: CFO	 	 	 	Title: President & CEO, Semiconductor Company	 	 

 

 

EXHIBIT A

TECHNOLOGY SCHEDULE

to the

TECHNOLOGY LICENSE AGREEMENT

          This Technology Schedule (“Schedule”) states that Licensee wishes to license from Sonics and
Sonics will license to Licensee Sonics Intellectual Property Rights associated with the Sonics
Licensed Core and the Deliverables listed below subject to the terms and conditions of the
Technology License Agreement (the “Agreement”) executed on March 26, 2003, and amended and restated
on October 29, 2003 and this Technology Schedule.

	 	1.	 	Licensed Technology

	 	A.	 	SiliconBackplaneTM MicroNetwork (“SB”)

SB is a high performance, configurable interconnect technology. The following are some of the
features of SB:

	 	–	 	User selected pipelining data path width scales raw data bandwidth from
50MBytes/s to 4GBytes/second at 250MHz.
	 
	 	–	 	User defined access control delivers high bandwidth utilization (over 90% for
networking data sets).
	 
	 	–	 	Hardware threading simultaneously guarantees realtime quality of service to
multiple data flows.
	 
	 	–	 	Agents decouple IP cores.
	 
	 	–	 	Manages data, control, and manufacturing test flows.
	 
	 	–	 	If pre-characterized, then will enable rapid performance analysis with
guaranteed timing closure.
	 
	 	–	 	Optional programmable registers enable runtime operating flexibility.
	 
	 	–	 	Fully automated netlist hookup.
	 
	 	–	 	Full GUI, with configuration, computed defaults, and timing constraint generator.
	 
	 	–	 	Simple floorplan interface.
	 
	 	–	 	Hierarchical synthesis script generation.
	 
	 	–	 	Integrated support for system service (programmable arbitration, and address map).

	 	B.	 	MemMax Memory Scheduler

MemMax is a high performance, configurable memory access scheduler. The following are some of the
features of MemMax:

	 	–	 	User selected memory dataflow scheduling to optimize DRAM utilization for
multiple dataflow traffic.
	 
	 	–	 	User selected global and per-thread scheduling parameters.
	 
	 	–	 	Maximum throughput of 2.4GBytes/second at 150MHz.
	 
	 	–	 	Standard OCP interface to the memory controller enables independence from
changes in DRAM controller.
	 
	 	–	 	Configurable data width, address width, and OCP interfaces.
	 
	 	–	 	GUI dialog boxes, with configuration and timing constraint generator.
	 
	 	–	 	Programmable prefetch to improve performance across SB.

A-1

 

     2. Deliverables 

	 	 	 	 	 	 	 
	SiliconBackplane Deliverables	 	Confidential	 	Commercial	 	Delivery Date
	Documentation
	 	 	 	 	 	 
	Relevant product guides and manuals and other
	 	 	 	 	 	 
	related technical collaterals
	 	Ö	 	 	 	[***]
	Tools
	 	 	 	 	 	 
	CoreCreator Tool Suite (including user manuals)
	 	Ö	 	 	 	[***]
	SOCCreator Tool Suite (including user manuals)
	 	Ö	 	 	 	[***]
	Keys for the tools valid for one year
	 	Ö	 	 	 	[***]
	Design Data
	 	 	 	 	 	 
	SiliconBackplane MicroNetwork RTL Generator
	 	Ö	 	 	 	[***]
	Synthesis & Simulations
	 	 	 	 	 	 
	Synopsys Design Compiler Scripts Generator
	 	Ö	 	 	 	[***]
	Simulations Scripts Generator
	 	Ö	 	 	 	[***]
	Timing Analysis
	 	 	 	 	 	 
	Pre-layout Primetime template Generator
	 	Ö	 	 	 	[***]
	Verification & Test
	 	 	 	 	 	 
	Quick Models Generators
	 	Ö	 	 	 	[***]
	Simulation & Verification Test Bench RTL
Generators
	 	Ö	 	 	 	 

	 	 	 	 	 	 	 
	MemMax Deliverables	 	Confidential	 	Commercial	 	Delivery Date
	Documentation
	 	 	 	 	 	 
	Relevant product guides and manuals and
other
	 	 	 	 	 	 
	related technical collaterals
	 	Ö	 	 	 	[***]
	Tools
	 	 	 	 	 	 
	SOCCreator based Dialog boxes for
configuration of MemMax
	 	Ö	 	 	 	[***]
	Keys for the tools valid for one year
	 	Ö	 	 	 	[***]
	Design Data
	 	 	 	 	 	 
	MemMax RTL Generator
	 	Ö	 	 	 	[***]
	Synthesis & Simulations
	 	 	 	 	 	 
	Synopsys Design Compiler Scripts Generator
	 	Ö	 	 	 	[***]
	Simulations Scripts Generator
	 	Ö	 	 	 	[***]
	Timing Analysis
	 	 	 	 	 	 
	Pre-layout Primetime template Generator
	 	Ö	 	 	 	[***]
	Verification & Test
	 	 	 	 	 	 
	Quick Models Generators
	 	Ö	 	 	 	[***]

A-2

 

	 	3.	 	License Fee

          Licensee agrees to pay Sonics non-refundable design license fees for all Devices designed or
developed by, or for, Licensee, its Subsidiaries or Sublicensees, in accordance with the following
tables, for the license rights granted to Licensee and Subsidiaries in Section 2 of the Agreement.
Licensee shall deliver to Sonics in writing a Commencement Notice within thirty (30) days of the
start of development of each Device identifying the development project name to which the
Deliverables are applied. If the SB or MemMax did not perform technically as described and
documented for any specific design, such design shall not count as a design in the below table.

	 	 	 
	Number of Designs Incorporating SB or MemMax	 	License Fee
	[***]
	 	[***]
	[***]
	 	[***]
	[***]
	 	[***]
	[***]
	 	[***]

	 	 	 
	Payment Due	 	Amount Due
	[***]
	 	[***]
	[***]
	 	[***]
	[***]
	 	[***]
	[***]
	 	[***]

          [***].

          The Valiant Device commenced by Licensee under the Valiant Agreement shall not count as a
design use in the above table. The Hidden Dragon Device commenced by Licensee’s Subsidiary, TAEC,
under the TAEC Agreement shall be counted as a design in the above table.

	 	4.	 	Royalties

          Licensee agrees to pay Sonics a royalty for each Device Sold by Licensee or Subsidiaries in
accordance with the Agreement and per this Technology Schedule as set forth below:

	 	 	 	 	 
	 	 	 	 	Royalty
	Product	 	Total Devices	 	(% of Net Sales)
	SiliconBackplane MicroNetworks and
MemMax
	 	[***]	 	[***]
	 
	 	[***]	 	[***]
	 
	 	[***]	 	[***]
	 
	 	[***]	 	[***]
	 
	 	[***]	 	[***]

          Total Device volume refers to the cumulative number of Devices Sold by Licensee or
Subsidiaries under the terms of this Technology Schedule.

          Royalties for the Valiant Device commenced by Licensee under the Valiant Agreement shall not
be calculated under the above table, but rather under the royalty provisions of the Valiant
Agreement. Royalties, for the Hidden Dragon Device commenced by Licensee’s Subsidiary, TAEC, under
the TAEC Agreement shall be calculated in accordance with the above table.

	 	5.	 	Maintenance and Support Fee

          Licensee agrees to pay Sonics a non-refundable maintenance fee as set forth below. This fee
is due and payable upon acceptance of the Deliverables by Licensee as provided in Section 4.2 of
the Agreement. The

A-3

 

fees for Maintenance are actually paid over the Term of the contract as an
annual maintenance fee. However, the first year maintenance fee is covered by the initial payment
of the License Fee, thus the payment of annual maintenance fee starts from the first anniversary
from the Effective Date (the Total Maintenance Fee below is
exclusive of the first year maintenance fee included in the initial payment of the License Fee).
Note that for the purposes of the maintenance fee calculation Licensee’s Microelectronics Center
and OME Works shall be deemed one Licensee site.

	 	 	 	 	 
	Licensed Product	 	Total Maintenance Fee	 	Annual Maintenance Fee
	SB

	 	[***]
	 	[***]
	MemMax

	 	[***]
	 	[***]
	Total

	 	[***]
	 	[***]

	 	 	 	The following services (“Maintenance”) shall be provided:
	 
	 	–	 	Sonics will assign a program manager as Licensee’s point of contact.
The program manager will support Licensee with the SB and the
Deliverables.
	 
	 	–	 	Sonics will provide Licensee with Updates on the date of general release.
	 
	 	–	 	Sonics will provide bug fixes in its general Update release dates.
	 
	 	–	 	If Licensee reports a bug or a problem, then Sonics will correct such
problem and, depending on the severity of the problem, Sonics will
provide Licensee with a fix as soon as commercially possible.
	 
	 	–	 	Sonics will provide [***] of phone and e-mail support on the SB,
MemMax and the Deliverables via Sonics’ assigned customer support
engineer. Support hours will not include time spent on bug fix support.
Licensee shall appoint an internal point of contact for technical issues
who will interface with the Sonics customer support engineer during the
Term of the Agreement.

               Sonics will provide a training class at Sonics’ Mountain View training center for up to [***]
Licensee engineers per class at a rate of [***], plus any incurred travel expenses (discounted
economy class travel) if such training class is held outside Sonics locations. Each training class
will consist of the following:

	 	–	 	Training on CoreCreator and Open Core Protocol interfaces.
	 
	 	–	 	Training on SOCCreator and the SB and MemMax.
	 
	 	–	 	System analysis using SOCCreator.

               Upon Toshiba’s written request for Sonics technical support and Sonics’ acceptance thereof,
Toshiba shall pay to Sonics [***] for [***] of phone and email support on the Licensed Technology
for that Device. Additional technical support may be purchased for each Device in blocks of [***]
for [***] up to a total of [***] per Device after which Toshiba shall receive technical support on
such Device at no additional cost. Engineers at Toshiba not involved in any specific design
project described in any Commencement Notice, but seeking for general technical support by Sonics,
may also request technical support at the rate of [***] for [***], but shall not be subject to the
per Device maximum support cost.

     6.      Additional Engineering Services

               Sonics will also offer additional engineering support services (“Engineering Services”) to
Licensee as part of a separate, value-added engineering or design services consulting arrangement.
The work required will be fully scoped to Licensee’s requirements and clearly defined in a separate
“Statement of Work.”

               Such Engineering Services work will be delivered on either a fixed fee or a time-and-materials
basis. Time-and-materials based Engineering Services will be charged using Sonics’ standard
Engineering Services rates (currently [***] per engineer-day, plus travel and expenses).

               Engineering Services work may consist of, but are not limited to, the following type of
activities:

	•	 	Support in tailoring of the SB, MemMax and the Deliverables to Licensee’s
design flow.
	 
	•	 	Support of Licensee during the core “hardening” (implementing the core into
the targeted

A-4

 

	 	 	process) stage of development.
	 
	•	 	Support in Licensee’s core conversion to OCP compliance.
	 
	•	 	Support in the integration and interface of the SB and MemMax within
Licensee’s IC product design.
	 
	•	 	Guidance in SB and MemMax related issues during the system-level verification
phase of the IC product development.
	 
	•	 	Memory Subsystem design
	 
	•	 	Custom OCP mergers splitters and cross bars

	 	7.	 	Sublicense Fees and Royalties

          In the event Licensee or its Subsidiaries elects to grant to Sublicensees some or all of the
sublicense rights pursuant to Section 2.1(c) of the Agreement, Licensee agrees to make the
following payments under the following circumstances:

          Design Rights Fee: Subject to the restrictions on sublicensing contained in the
Agreement, Licensee or its Subsidiaries may sublicense free-of-charge to Sublicensees the right for
Sublicensees to internally use the Deliverables for the design and development of Devices for which
Sonics has previously received a Commencement Notice pursuant to Section 3 of this Exhibit A. 

          Third-Party Manufacturing Rights Fee: Subject to the restrictions on sublicensing
contained in the Agreement, for each sublicense granted by Licensee or its Subsidiaries to
Sublicensees of the right to manufacture or have manufactured a Device at a third-party
semiconductor foundry (not at a Licensee semiconductor foundry) for sale or distribution by
Sublicensees, Licensee shall pay to Sonics [***] for each Device containing one or more SB cores
and [***] for each Device containing one or more MemMax cores.

          Royalties for Sales by Sublicensees: Subject to the restrictions on sublicensing
contained in the Agreement, in the event that Devices are manufactured by a third-party
semiconductor foundry and Sold by a Sublicensee (rather than by Licensee or its Subsidiaries),
Licensee shall pay Sonics a royalty for each Device Sold by such Sublicensee (or its wholly-owned
subsidiaries) at the rate of [***] of the Net Sales of each Device. For the sake of clarification,
all Devices shall be royalty bearing in one, and only one, of two ways: (i) each Device Sold by
Licensee or its Subsidiaries shall be royalty bearing under Section 4 of this Exhibit A and (ii)
each Device Sold by Sublicensees that is manufactured at a Non-Toshiba Fabrication Facility shall
be royalty bearing under this Section.

          Support and Training Fees: In the event Sonics is requested to provide support or
training directly to Sublicensees, Licensee shall pay to Sonics (i) [***] for each fifty hour block
of support provided to each Sublicensee, and (ii) [***] for each training class (plus travel)
provided to any Sublicensee. 

	 	8.	 	Term

               The term of the Agreement shall begin on the Effective Date and, unless earlier terminated as
provided in the Agreement, shall continue for a period of five (5) years thereafter (the “Term”);
provided that, the licenses granted under Section 2 of the Agreement shall remain in effect until
the end of life of each Device for which a design activity was commenced during the Term (as
evidenced by the prior submission of a Commencement Notice). Further, as provided in Section 8.14
of the Agreement, certain rights survive any such termination or expiration. In the event
Licensee’s use of the Deliverables, the SB or MemMax shall be enjoined for the reasons set forth in
Section 8.2(b) of the Agreement, the Term shall be tolled during the period of enjoinment plus the
amount of time necessary for end-users of the Device to verify any modifications to or replacements
of the Deliverables.

	 	9.	 	Program Managers
	 
	 	 	 	Business Manager:                         Technical Manager:

For Licensee:     [To be specified in an individual Commencement Notice]

A-5

 

	 	 	 	 	 
	For Sonics:

	 	Hayssam Balach
	 	John Ivie
	 

	 	Managing Director – ASIA Pacific
	 	Director, Applications Engineering
	 

	 	2440 W. El Camino Real
	 	2440 W. El Camino Real
	 

	 	Suite 600
	 	Suite 620
	 

	 	Mountain View, CA 94040
	 	Mountain View, CA 94040
	 

	 	(650)605-6145
	 	(650)938-2500 ext. 159
	 

	 	Fax: (650)938-2577
	 	Fax: (650)938-2577
	 

	 	E-mail: hbalach@sonicsinc.com 
	 	E-mail: ivie@sonicsinc.com 

A-6

 

ADDENDUM TO EXHIBIT A

TECHNOLOGY SCHEDULE

to the

TECHNOLOGY LICENSE AGREEMENT

For

SYNAPSETM 3220 IP CORE

          This Technology Schedule (“Schedule”) states that Licensee wishes to license from Sonics and
Sonics will license to Licensee Sonics Intellectual Property Rights associated with the Sonics
Licensed Core and the Deliverables listed below subject to the terms and conditions of the
Technology License Agreement (the “Agreement”) executed on March 26, 2003, and amended and restated
on October ___, 2003 and this Technology Schedule.

          1. Licensed Technology

               SynapseTM 3220 IP Core

Synapse 3220 is a peripheral interconnect optimized to provide low-latency access to a
large number of low bandwidth, low speed target IP cores. Synapse 3220 is a
pipe-lined, multi-threaded and non-blocking interconnect, which allows overlapping of
different transactions temporally.

          2. Deliverables 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Synapse 3220 Deliverables	 	Confidential	 	Commercial	 	Delivery Date
	Documentation
	 	 	 	 	 	 	 	 	 	 	 	 
	Relevant product guides and manuals and other 

related technical collaterals
	 	 	Ö	 	 	 	 	 	 	 	[***]	 
	Tools
	 	 	 	 	 	 	 	 	 	 	 	 
	CoreCreator Tool Suite (including user manuals)
	 	 	Ö	 	 	 	 	 	 	 	[***]	 
	SOCCreator Tool Suite (including user manuals)
	 	 	Ö	 	 	 	 	 	 	 	[***]	 
	Keys for the tools valid for one year
	 	 	Ö	 	 	 	 	 	 	 	[***]	 
	Design Data
	 	 	 	 	 	 	 	 	 	 	 	 
	Synapse 3220 RTL Generator
	 	 	Ö	 	 	 	 	 	 	 	[***]	 
	Synthesis & Simulations
	 	 	 	 	 	 	 	 	 	 	 	 
	Synopsys Design Compiler Scripts Generator
	 	 	Ö	 	 	 	 	 	 	 	[***]	 
	Simulations Scripts Generator
	 	 	Ö	 	 	 	 	 	 	 	[***]	 
	Timing Analysis
	 	 	 	 	 	 	 	 	 	 	 	 
	Pre-layout Primetime template Generator
	 	 	Ö	 	 	 	 	 	 	 	[***]	 
	Verification & Test
	 	 	 	 	 	 	 	 	 	 	 	 
	Quick Models Generators
	 	 	Ö	 	 	 	 	 	 	 	[***]	 
	Simulation & Verification Test Bench RTL
Generators
	 	 	Ö	 	 	 	 	 	 	 	[***]	 

A-1 

 

          3. License Fee

               Licensee agrees to pay Sonics non-refundable design license fees for all Devices designed or
developed by, or for, Licensee, its Subsidiaries or Sublicensees, in accordance with the following
tables, for the license rights granted to Licensee and Subsidiaries in Section 2 of the Agreement.
Licensee shall deliver to Sonics in writing a Commencement Notice within thirty (30) days of the
start of development of each Device identifying the development project name to which the
Deliverables are applied. If the Synapse 3220 did not perform technically as described and
documented for any specific design, such design shall not count as a design in the below table.

	 	 	 	 	 
	Number of Designs	 	 	 	 
	Incorporating Synapse	 	License Fee for each	 	 
	3220	 	Device	 	Payment Due Date
	[***]

	 	[***]
	 	Upon receipt of Commencement Notice for a Device incorporating a Synapse 3220 IP Core
	[***]
	 	[***]	 	 

          4. Royalties

               Licensee agrees to pay Sonics a royalty for each Device Sold by Licensee or Subsidiaries in
accordance with the Agreement and per this Technology Schedule as set forth below:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Royalty
	 	 	 	 	 	 	(% of Net
	Product	 	Total Devices	 	Sales)
	 
	 	 	[***]	 	 	 	[***]	 
	 
	 	 	[***]	 	 	 	[***]	 
	Synapse 3220
	 	 	[***]	 	 	 	[***]	 
	 
	 	 	[***]	 	 	 	[***]	 
	 
	 	 	[***]	 	 	 	[***]	 

               Total Device volume refers to the cumulative number of Devices Sold by Licensee or
Subsidiaries under the terms of this Technology Schedule.

               In the event Licensee sells Devices incorporating one or more different Sonics IP Cores (e.g.,
an SB IP Core and a Synapse 3220 IP Core), Licensee shall only have to pay a royalty equal to the
highest royalty rate from any one (1) IP Core incorporated in such Devices.

          5. Maintenance and Support Fee

               Licensee agrees to pay Sonics a non-refundable maintenance fee as set forth below. This fee
is due and payable upon receipt of a Commencement Notice for each Device incorporating a Synapse
3220 IP Core.

	 	 	 
	Licensed Product	 	Maintenance Fee
	Synapse 3220

	 	[***]

               The following services (“Maintenance”) shall be provided:

	 	–	 	Sonics will assign a program manager as Licensee’s point of contact.
The program manager will support Licensee with Synapse 3220 and the
Deliverables.

A-2 

 

	 	–	 	Sonics will provide Licensee with Updates on the date of general release.
	 
	 	–	 	Sonics will provide bug fixes in its general Update release dates.
	 
	 	–	 	If Licensee reports a bug or a problem, then Sonics will correct such
problem and, depending on the severity of the problem, Sonics will
provide Licensee with a fix as soon as commercially possible.
	 
	 	–	 	Sonics will provide [***] of phone and e-mail support on the Synapse
3220 and the Deliverables via Sonics’ assigned customer support engineer.
Support hours will not include time spent on bug fix support. Licensee
shall appoint an internal point of contact for technical issues who will
interface with the Sonics customer support engineer during the Term of
the Agreement.

               Sonics will provide a training class at Sonics’ Mountain View training center for up to eight
(8) Licensee engineers per class at a rate of [***] per class, plus any incurred travel expenses
(discounted economy class travel) if such training class is held outside Sonics locations. Each
training class will consist of the following:

	 	–	 	Training on CoreCreator and Open Core Protocol interfaces.
	 
	 	–	 	Training on SOCCreator and the Synapse 3220.
	 
	 	–	 	System analysis using SOCCreator.

               Upon Toshiba’s written request for Sonics technical support and Sonics’ acceptance thereof,
Toshiba shall pay to Sonics [***] for [***] of phone and email support on the Licensed Technology
for that Device. Additional technical support may be purchased for each Device in blocks of [***]
for [***] up to a total of [***] per Device after which Toshiba shall receive technical support on
such Device at no additional cost. Engineers at Toshiba not involved in any specific design project
described in any Commencement Notice, but seeking for general technical support by Sonics, may also
request technical support at the rate of [***] for fifty (50) hours, but shall not be subject to
the per Device maximum support cost.

          6. Additional Engineering Services

               Sonics will also offer additional engineering support services (“Engineering Services”) to
Licensee as part of a separate, value-added engineering or design services consulting arrangement.
The work required will be fully scoped to Licensee’s requirements and clearly defined in a separate
“Statement of Work.”

               Such Engineering Services work will be delivered on either a fixed fee or a time-and-materials
basis. Time-and-materials based Engineering Services will be charged using Sonics’ standard
Engineering Services rates (currently [***] per engineer-day, plus travel and expenses).

               Engineering Services work may consist of, but are not limited to, the following type of
activities:

	•	 	Support in tailoring of the SB, MemMax, Synapse 3220 and the Deliverables to
Licensee’s design flow.

	•	 	Support of Licensee during the core “hardening” (implementing the core into
the targeted process) stage of development.

	•	 	Support in Licensee’s core conversion to OCP compliance.

	•	 	Support in the integration and interface of the SB, MemMax, or Synapse 3220
within Licensee’s IC product design.

	•	 	Guidance in SB, MemMax, and Synapse 3220 related issues during the
system-level verification phase of the IC product development.

	•	 	Memory Subsystem design

	•	 	Custom OCP mergers splitters and cross bars

          8. Sublicense Fees and Royalties

          In the event Licensee or its Subsidiaries elects to grant to Sublicensees some or all of the
sublicense rights pursuant to Section 2.1(c) of the Agreement, Licensee agrees to make the
following payments under the following circumstances:

A-3 

 

          Design Rights Fee: Subject to the restrictions on sublicensing contained in the
Agreement, Licensee or its Subsidiaries may sublicense free-of-charge to Sublicensees the right for Sublicensees to internally
use the Deliverables for the design and development of Devices for which Sonics has previously
received a Commencement Notice pursuant to Section 3 of this Addendum to Exhibit A.  

          Third-Party Manufacturing Rights Fee: Subject to the restrictions on sublicensing
contained in the Agreement, for each sublicense granted by Licensee or its Subsidiaries to
Sublicensees of the right to manufacture or have manufactured a Device at a third-party
semiconductor foundry (not at a Licensee semiconductor foundry) for sale or distribution by
Sublicensees, Licensee shall pay to Sonics [***] for each Device containing one or more Synapse
3220 cores.

          Royalties for Sales by Sublicensees: Subject to the restrictions on sublicensing
contained in the Agreement, in the event that Devices are manufactured by a third-party
semiconductor foundry and Sold by a Sublicensee (rather than by Licensee or its Subsidiaries),
Licensee shall pay Sonics a royalty for each Device Sold by such Sublicensee (or its wholly-owned
subsidiaries) at the rate of [***] of the Net Sales of each Device. For the sake of clarification,
all Devices shall be royalty bearing in one, and only one, of two ways: (i) each Device Sold by
Licensee or its Subsidiaries shall be royalty bearing under Section 4 of this Addendum to Exhibit A
and (ii) each Device Sold by Sublicensees that is manufactured at a Non-Toshiba Fabrication
Facility shall be royalty bearing under this Section.

          Support and Training Fees: In the event Sonics is requested to provide support or
training directly to Sublicensees, Licensee shall pay to Sonics (i) [***] for each fifty hour block
of support provided to each Sublicensee, and (ii) [***] for each training class (plus travel)
provided to any Sublicensee. 

          8. Term

               The term of this Addendum to Exhibit A shall begin on October ___, 2003 and, unless earlier
terminated as provided in the Agreement, shall continue until the expiration of the Term in Exhibit
A, thereafter (the “Term”); provided that, the licenses granted under Section 2 of the Agreement
shall remain in effect until the end of life of each Device for which a design activity was
commenced during the Term (as evidenced by the prior submission of a Commencement Notice).
Further, as provided in Section 8.14 of the Agreement, certain rights survive any such termination
or expiration. In the event Licensee’s use of the Deliverables or Synapse 3220 shall be enjoined
for the reasons set forth in Section 8.2(b) of the Agreement, the Term shall be tolled during the
period of enjoinment plus the amount of time necessary for end-users of the Device to verify any
modifications to or replacements of the Deliverables.

          9. Program Managers

	 	 	 	 	 
	 	 	Business Manager:	 	Technical Manager:
	For Licensee:	 	[To be specified in an individual Commencement Notice]
	 
	 	 	 	 
	For Sonics:

	 	Hayssam Balach
	 	John Ivie
	 

	 	Managing Director – ASIA Pacific
	 	Director, Applications Engineering
	 

	 	2440 W. El Camino Real
	 	2440 W. El Camino Real
	 

	 	Suite 600
	 	Suite 620
	 

	 	Mountain View, CA 94040
	 	Mountain View, CA 94040
	 

	 	(650)605-6145
	 	(650)938-2500 ext. 159
	 

	 	Fax: (650)938-2577
	 	Fax: (650)938-2577
	 

	 	E-mail: hbalach@sonicsinc.com
	 	E-mail: ivie@sonicsinc.co

A-4 

 

EXHIBIT B

APPROVAL FORM

	 	 	 	 	 	 	 	 	 
	TO:

	 	Sonics, Inc. (“Sonics”)
	 	 	 	FROM:	 	 
	 

	 	 	 	 	 	 	 	 
	ATTN:

	 	Program Manager
	 	 	 	AT:
	 	Toshiba Corporation (“Licensee”)
	FAX NO.:

	 	(650) 938-2577
	 	 	 	FAX NO.:	 	 
	 

	 	 	 	 	 	 	 	 
	DATE:

	 	 	 	 	 	 	 	(Please provide fax number to which
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 Sonics should respond.)

          The Licensee identified above requests approval from Sonics in accordance with the terms and
conditions of the Technology License Agreement dated as of March ___, 2003, by and between Sonics
and Licensee (the “License Agreement”) to use the third party identified below for the purpose
identified below or hereby provides notice to Sonics as set forth below:

          That the following third party shall be approved as a contractor to be used by Licensee in
exercising its internally developed or internal design rights as permitted under Section 2.1 of the
License Agreement pursuant to the Technology Schedule attached to the License Agreement as
Exhibit A:

	 	 	 	 	 	 	 
	 

	 	Third Party Contractor:	 	 	 	 
	 

	 	Address:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Country:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Contact Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Telephone/Fax:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Email:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 Nature of Work to be Performed: 	 	 	 	 
	 

	 	 	 	 	 	 

	 
	 

	 

	 

	 

	 

	 

	 

	 

	 

	 	 	 	 	 
	 	 	SONICS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

B-5 

 

EXHIBIT C

FORM OF COMMENCEMENT NOTICE

Commencement Notice 

	 	 	 	 	 	 	 	 	 
	TO:

	 	Sonics Inc. (“Sonics”)
	 	 	 	FROM:	 	 
	 

	 	 	 	 	 	 	 	 
	ATTN:

	 	Program Manager
	 	 	 	AT:
	 	Toshiba Corporation (“Licensee”)
	FAX NO.:

	 	(650) 938-2577
	 	 	 	FAX NO.:
	 	
	 

	 	 	 	 	 	 	 	 
	DATE:

	 	 	 	 	 	 	 	(Please provide fax number to which
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Sonics should respond)

In accordance with the terms and conditions of the Technology License Agreement entered into
by and between Licensee and Sonics as of                     , 2003 (the “Agreement”) and pursuant to
Section 3 in Exhibit A of the Agreement, Licensee hereby notifies Sonics of the start of
development of a new Device as identified below:

Development of the following Device has been commenced as of                     , 200_, using the Deliverables set forth in the
Technology Schedule(s) attached to the Agreement.

	 	 	 
	Project Name:

	 	Device being designed by: (check one)
	 
	 	 
	 

	 	___ Licensee (or Subsidiary)
	 
	 	 
	Design Site for the Device:

	 	___ Sublicensee:                     [Name]
	 
	 	 
	Description of Device:
	 	 

Licensee’s Project Manager for this project

	 	 	 	 	 
	Business Manager

	 	Technical Manager	 	 
	 	 	 
	[Name]

	 	[Name]	 	 
	 	 	 
	[Title]

	 	[Title]	 	 
	 	 	 
	[Address]

	 	[Address]	 	 
	 	 	 
	[Tel]

	 	[Tel]	 	 
	 	 	 
	[Fax]

	 	[Fax]	 	 
	 	 	 
	[E-mail]

	 	[E-mail]	 	 
	 	 	 
	Signature
	 	 	 	 
	 

	 	 	 	 

C-1 

 

EXHIBIT D

Minimum Provisions for Sublicense Agreements with Sublicensees

	1.	 	The Deliverables may only be used by Sublicensee as sublicensed by Licensee in the sublicense
agreement, but in no event in excess of the license grants in Section 2.1 of the Agreement.

	2.	 	Sublicensee may not transfer or sublicense the License Technology to any entity other than
Sublicensee’s wholly-owned subsidiaries, and then only under the same terms and conditions of
the sublicense agreement. Sublicensee may not assign or transfer the sublicense agreement

	3.	 	Sublicensee agrees to restrictions on the use of Licensed Technology at least as restrictive
as those in Article 2 of the Agreement.

	4.	 	Sublicensee agrees to confidentiality provisions at least as restrictive as Section 8.3 of
the Agreement.

	5.	 	Licensee shall have audit rights at least once per year to audit Sublicensee’s compliance
with the payment of fees and royalties.

	6.	 	Licensee shall have the right to terminate the sublicense agreement immediately upon breach
by Sublicensee.

	7.	 	Upon expiration or termination of the sublicense agreement, Sublicensee shall return all
copies in its possession of the Licensed Technology and Confidential Information to Licensee.

D-1exv10w22

 

Exhibit
10.22

MASTER TECHNOLOGY LICENSE AGREEMENT*

          This Master Technology License Agreement (this “Agreement”) is entered into effective as of
this 28th day of September 2007 (“Effective Date”), by and between Sonics, Inc., a Delaware
corporation with principal offices at 1098 Alta Avenue, Suite 101, Mountain View, California 94043
(“Sonics”), and Marvell International Ltd., a Bermuda corporation with offices at Argyle House, 41A
Cedar Avenue, Hamilton, HM 12, Bermuda, on behalf of itself and its Affiliates (as defined below)
(“MIL”).

          WHEREAS, Sonics® develops and licenses semiconductor intellectual property (“IP”) cores in the
field of on chip or system on chip communication networks that connect IP cores in order to
optimize, improve, configure and automate on-chip communications; and Sonics also provides related
software design tools.

          WHEREAS, Licensee (as defined below) wishes to license the Licensed Technology (as defined
below) in order to develop integrated circuit devices that incorporate Sonics’ IP Cores (as defined
below).

          NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

	1.	 	DEFINITIONS

          For purposes of this Agreement, the following terms shall have the following meanings:

          1.1 “Affiliate” as applied to Licensee, shall mean any company or other legal entity
other than Licensee, in whatever country organized, that directly or indirectly is controlled by,
is under common control with, or controls Licensee. The term “control” means possession of the
power to direct or cause the direction of the management and policies whether through the ownership
of voting securities, by contract or otherwise; and the term “control” includes the direct or
indirect possession of beneficial ownership of more than 50% of the stock or other similar
interests entitled to vote for election motherboard of directors or similar managing authority.

          1.2 “Binary Materials” shall mean the portion of the Licensed Technology provided to
Licensee in binary format, and shall exclude materials provided in human readable or source format.

          1.3 “Commencement Notice” shall mean the notice attached hereto as Exhibit A,
informing Sonics of the commencement of the design or development of a Device under this Agreement.

          1.4 “Confidential Information” shall mean all technical, financial, commercial, legal
or other information, in whatever form or media, that is not generally known to the public, whether
or not it is patented, registered or otherwise publicly protected, and includes, without
limitation, the Licensed Technology databases and netlists generated with the Licensed Technology,
the terms and conditions of this Agreement and the commercial intentions of the parties.

* [***]: Certain information in this document has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

          1.5 “Derivative Work” shall mean a new or modified work that is based on or derived
from a preexisting work, including, without limitation, a work that, in the absence of a license,
would infringe the copyright in such preexisting work or that uses trade secrets or other
proprietary information with respect to such preexisting work; provided that it is understood and
agreed that the incorporation of Sonics IP Cores into a Device does not constitute a “Derivative
Work” as such term is used in this Agreement.

          1.6 “Device” shall mean a semiconductor device designed by Licensee (with the use of
Licensed Technology) that incorporates at least one instance of a
Sonics IP Core. For purposes of royalty calculation, reporting and
payment, the term “Device” shall include any MCM. An
“MCM” or “Multi-Chip Module” is a Device that
contains more than one die, at least one of which is a device that
incorporates at least one instance of a Sonics IP Core.

          1.7 “Intellectual Property Rights” shall mean any and all intellectual property rights
throughout the world) including without limitation any and all patents, patent applications,
copyrights, copyright applications, moral rights, trademarks, trade secret rights, rights to
know-how, inventions, and algorithms, and any and all similar or equivalent rights throughout the
world,

          1.8 “Licensee” means MIL and MIL’s Affiliates.

          1.9 “License Fee” shall mean the amount to be paid by Licensee for the use of the
Licensed Technology as set forth in the Licensed Technology Schedule.

          1.10 “License Use” shall mean the use of the Licensed Technology for the design and
development of one (1) Device. The use of the Licensed Technology to design and develop a new
Device or a Device variant (i.e, any changes to an existing Device’s features, functionalities or
architecture) constitutes a new License Use. Process geometry shrinks and bug fixes to an existing
Device that do not alter the defined features of such Device shall be deemed to not be a new
License Use.

          1.11 “Licensed Technology” shall mean the Sonics IP core(s), the Sonics Studio and
Tools, and all documentation thereto as specified in the Licensed Technology Schedule. In
addition, Licensed Technology includes: (i) any Updates thereto that are provided by Sonics to
Licensee during the Term of this Agreement; and (ii) all documentation relating to the Licensed
Technology that Sonics provides to Licensee during the Term. In the event that Sonics delivers to
Licensee during the Term, in Sonics’ discretion, any additional technology or tools not otherwise
licensed to Licensee, then such technology and tools shall be deemed Licensed Technology for
purposes of this Agreement.

          1.12 “Licensed Technology Schedule” shall mean Exhibit B hereto as well as any future
schedules entered into by the parties.

          1.13 “Net Sales” shall mean the gross sales amount invoiced to customers of Licensee
(or its Affiliates) for all copies of Devices sold, less: (i) amounts invoiced for returned goods
for which a refund is given; (ii) charges for insurance, handling, duty, freight and taxes (where
such items are included in the invoiced price and detailed separately on the invoice); (iii)
amounts invoiced that are not paid and then written off by Licensee; and (iv) any pricing
adjustments made to the amounts invoiced to distributors for Devices. Net Sales shall not be
reduced by any other offsets or tradeoffs by Licensee against any amounts invoiced to customers of
Licensee for Devices. In the event that Licensee sells or barters Devices in exchange for non-cash

2

 

consideration as determined by applying generally accepted accounting principles, then Net
Sales shall also include the fair market value of such non-cash consideration.

          1.14 “Royalty Report” shall mean a royalty report in the form attached as Exhibit C)
detailing royalties due by Licensee for sales of Devices.

          1.15 “Sonics IP Core(s)” shall mean the integrated circuit design database(s)
specified in the Licensed Technology Schedule that is (are) generated by the use of Sonics Studio
and Tools.

          1.16 “Sonics Studio and Tools” shall mean all of Sonics’ software design tools
(including without limitation included development tools, synthesis tools, and verification tools)
listed in the Licensed Technology Schedule (subject to the representation and warranty contained in
Section 7.1(g)).

          1.17 “Term” shall have the meaning given to it in Section 6.1.

          1.18 “Trademarks” shall have the meaning given to it in Section 11.1.

          1.19 “Unit Volume” shall mean the number of units of copies of any single Device sold
or otherwise transferred by Licensee or its Affiliates to customers during a specific period.
Sales by Licensee of Devices to its Affiliates shall not be counted in Unit Volume until such
Devices are sold to customers.

          1.20 “Updates” shall mean any and all error corrections, bug fixes, or workarounds to
the Licensed Technology to ensure the Licensed Technology performs according to its specifications
that are generally released to Sonics’ customers from time to time. Updates may, from
time-to-time, include enhancements to the Licensed Technology which Sonics, at its sole discretion,
may include as part of an Update.

	2.	 	LICENSE GRANTS

          2.1 Subject to the terms and conditions of this Agreement, Sonics hereby grants to Licensee a
royalty-bearing, nonexclusive, nonsublicensable, nontransferable license under Sonics’ Intellectual
Property Rights in the Licensed Technology to:

               (a) use the Licensed Technology internally by the number of License Uses identified in the
Licensed Technology Schedule (subject to the payment of License Fee under Section 5.1) during the
Term of this Agreement; and

               (b) make, have made, offer to sell, sell, import or otherwise distribute Devices designed and
developed under the License Uses granted in Section 2.1 (a).

          2.2 Restrictions on Use of Licensed Technology. Licensee agrees to the following
restrictions on its use of the Licensed Technology:

               (a) Licensee may not reverse engineer any Binary Materials, nor may Licensee decompile,
disassemble, or otherwise reduce the Binary Materials or any component

3

 

thereof to human-readable or non-binary form. The Sonic Studio and Tools (including the
un-configured IP cores) may not be used in or accessed from sites outside of the [***] and Licensee
agrees to be liable for any damages caused to Sonics by Licensee’s violation of this prohibition;
provided however that output from the Sonic Studio and Tools may be used and the Devices may be
sold and used anywhere in the world, subject to compliance with Section 11.7.

               (b) Licensee agrees to restrict access to the Licensed Technology solely to the following
persons or entities that have a need to use the Licensed Technology in performing Licensee’s duties
and exercising Licensee’s rights under this Agreement: (i) employees of Licensee, (ii) individuals
working as independent consultants for Licensee (and together with employees, the “Licensee
Users”), or (iii) electronic design automation (“EDA”) tool vendors (but only to debug, modify or
confirm the functionality of their EDA design tools for use with Devices containing the Licensed
Technology). Prior to granting such access to the Licensed Technology, such individuals or
entities shall have entered into agreements with Licensee, which contain provisions substantially
similar to this Agreement restricting the use, confidentiality, and dissemination of the Licensed
Technology.

               (c) The Licensed Technology may be placed on file servers only if access to such server(s) is
restricted to a known set of computer systems. The Licensed Technology shall be protected using,
at a minimum, native operating system permissions capabilities to restrict all access (including
read access) to a known and specific group of users, each of whom has a need to use. Moreover,
such users shall use commercially reasonable password security, and “log off’ or “lock access” to
their systems when not in use. The Licensed Technology may be backed up only to a medium that
complies with the restrictions of this Section 2.2. Licensee shall prevent remote access to the
Licensed Technology from other locations by any party other than the Licensee Users that need to
have access. In the event that files are moved to another system, whether or not remote, then the
same access limitations shall apply.

               (d) No more often than once per year, Licensee agrees to allow reasonable access to a third
party reasonably agreeable to both Licensee and Sonics in order to audit Licensee’s handling of the
Licensed Technology; provided that such third party first enters into a reasonably appropriate
confidentiality agreement acceptable to Licensee and such audit is conducted in accordance with
such other reasonable terms with respect thereto as the parties may agree to.

               (e) Except as permitted expressly herein, Licensee shall not distribute, disclose, assign,
sublicense, or otherwise transfer the Licensed Technology (or any data created or derived from the
Licensed Technology) to any third party, except for the Sonics IP Core and then only as
incorporated in a Device where the configuration parameters of the Sonics’ IP Core have been
specified by Licensee.

               (f) Licensee shall not modify, translate or create any Derivative Works based upon the
Licensed Technology or any portion thereof. Licensee shall not remove or alter any copyright,
trademark, trade name or other proprietary notices, legends, symbols or labels appearing on or in
copies of the Licensed Technology.

4

 

               (g) Licensee may use other on-chip interconnection technology and may develop proprietary
technology for interconnecting cores, so long as such use and development are wholly independent of
and separate from the Licensed Technology.

          2.3 Rights and Reservations. No license or other right is granted, by implication,
estoppel or otherwise, to Licensee under any Confidential Information or Intellectual Property
Rights now or hereafter owned or controlled by Sonics except for the licenses and rights expressly
granted in this Agreement. Except for any third party software or open source software which may
be included as a part of the Licensed Technology, Sonics retains all rights, title, ownership and
interest in and to the Licensed Technology, including, all Intellectual Property Rights embodied
therein, and all subsequent copies, modifications, revisions, upgrades, Derivative Works, Updates
and Upgrades of any of the foregoing.

	3.	 	DELIVERY

          3.1 Delivery. Sonics shall deliver to Licensee the Licensed Technology promptly as
specified in the Licensed Technology Schedule.

          3.2 Updates. Sonics shall deliver to Licensee each and every Update no later than the
time that Sonics makes such Update generally available to Sonics’ other customers.

          3.3 Commencement Notices. Licensee [***] deliver to Sonics a Commencement Notice [***]. The form of the Commencement Notice
is attached hereto as Exhibit A.

	4.	 	MAINTENANCE, TRAINING AND TECHNICAL SUPPORT

          4.1 Maintenance, Training and Technical Support. Sonics will provide maintenance
services, training and technical support to Licensee for the Licensed Technology as specified in
the Licensed Technology Schedule and at the rates described therein.

          4.2 Post Termination Maintenance. Provided that Licensee is not in breach of this
Agreement, Licensee may elect to continue to pay the maintenance services fees after the
termination or expiration of the Term (at the rates specified in Section 4.1) in order to receive
continuing maintenance services. Nothing in this Section 4.2 shall permit Licensee to use the
Licensed Technology to commence the design or development of a new Device (or a new License Use),
after the expiration or termination of the Term. Licensee shall have the right to use the Licensed
Technology to continue to design, develop, and debug any Devices that have been commenced as of
such termination or expiration (as evidenced by a list of such Devices provided by Licensee to
Sonics at such time).

	5.	 	CONSIDERATION

          5.1 License Fee. In consideration of the license grants and access to the Licensed
Technology, Licensee agrees to pay to Sonics the License Fee specified in the License Technology
Schedule:

          5.2 Royalties. In further consideration of the license grants and access to the
Licensed Technology, Licensee will pay Sonics running royalties with respect to each Device at the
royalty rate calculated by the formula in Section 4 of the Licensed Technology Schedule

5

 

multiplied by Net Sales of copies of such Device, (that incorporate(s) a royalty-bearing
Sonics IP Core) sold (or distributed by barter, exchange or similar disposition) by Licensee or its
Affiliates. Sales by Licensee of Devices to its Affiliates shall not be subject to running
royalties until such Devices are thereafter sold to customers, at which time such Devices shall be
subject to such running royalties.

          5.3 Royalty Reports and Payments. Licensee shall deliver to Sonics, within 45 days
after the end of each fiscal quarter of Licensee during which any Devices are sold (or distributed
by barter, exchange or similar disposition), a Royalty Report (in the form attached hereto as
Exhibit C) setting forth in reasonable detail the calculation of the royalties payable to Sonics
for such fiscal quarter, including the number and identification of Devices sold (or distributed by
barter, exchange or similar disposition) and the Net Sales thereof, together with payment of the
royalty with respect to such Devices.

          5.4 Payments. All amounts paid by Licensee hereunder shall be non-refundable and
non-creditable. All royalties shall be earned upon invoicing by Licensee for Devices for which
royalties are owed to Sonics. All payments due under this Agreement shall be made by bank wire
transfer in immediately available funds to a bank account designated by Sonics. Any payments due
hereunder that are not paid when due shall bear interest at the lesser of one percent (1 %) per
month or the maximum rate permitted by law, calculated on the number of days such payment is
delinquent.

          5.5 Books and Records. Licensee shall maintain accurate books and records that enable
the calculation of royalties payable hereunder to be verified. Licensee shall retain the books and
records for each fiscal quarter for three (3) years after the submission of the corresponding
report under Section 5.3. Upon prior notice to Licensee, independent accountants selected by
Sonics, reasonably acceptable to Licensee, may have access to Licensee’s books and records during
Licensee’s normal business hours at mutually agreed times to conduct a review or audit no more than
once per fiscal year, for the purpose of verifying the accuracy of Licensee’s royalty payments in
compliance with this Agreement. Any such inspection or audit shall be at Sonics’ expense, however,
in the event an inspection reveals underpayment of five percent (5%) or more in any audit period,
then Licensee shall pay the reasonable costs of such inspection. Licensee shall promptly pay to
Sonics any underpayment identified in such an audit with interest as specified in Section 5.4.

	6.	 	EXPIRATION AND TERMINATION

          6.1 Expiration. The term of this Agreement shall be as stated in the Licensed
Technology Schedule (“Term”).

          6.2 Termination for Material Breach. In the event that: (i) either party commits any
material breach of any of the representations, warranties, covenants, or obligations contained in
this Agreement; and (ii) such material breach is not cured within 30 days after the non-breaching
party gives to the breaching party written notice of such material breach; then the non-breaching
party shall be entitled to terminate the Term immediately upon written notice thereof to the
breaching party. Upon any such termination for such material breach, the parties shall be entitled
to all rights and remedies provided by law with respect thereto. In the event that Sonics

6

 

duly terminates the Term for Licensee’s material breach in accordance with this Section 6.2,
then at such time the license rights specified in Section 2.1 shall also terminate.

          6.3 Retention of Licensed Technology. Except for termination for Licensee’s material
breach in accordance with Section 6.2, Licensee shall have the right to retain the Licensed
Technology after the termination or expiration of the Term to the extent necessary to enjoy the
rights that survive such expiration or termination of the Term.

          6.4 Consequences of Expiration or Termination. Subject to the provisions of Section
6.2, upon expiration or termination of the Term, the following shall survive any such expiration or
termination: (i) the obligations of Sections 2.2, 2.3, 4.2,5.2,5.3,5.4,5.5.6.3 and 6.4 and Articles
7, 8, 9, 10 and 11 (and any sections in the Exhibits referenced therein); (ii) subject to the
continuing payment of royalties, Licensee’s right to make, have made, offer to sell, sell, import
or otherwise distribute copies of Devices under Section 2.1(b), where the design or development of
such Devices has been commenced as of the expiration or termination, (iii) subject to the
continuing payment of maintenance fees (pursuant to Section 4.2), the right to receive continuing
maintenance services; (iv) the right to use the Licensed Technology to continue to design and
develop any Devices (under Section 2.1(a) which have been commenced as of the expiration or
termination; and (v) any right or obligation of a party that has accrued as of the effective date
of any termination or expiration, including without limitation, obligations to pay amounts owed.

	7.	 	REPRESENTATIONS AND WARRANTIES

          7.1 Sonics Representations and Warranties. Sonics hereby represents and warrants to
Licensee and covenants with Licensee as follows:

               (a) Duly Organized. Sonics is duly organized, validly existing, and in good standing
under the laws of the jurisdiction of its organization, and this Agreement has been duly authorized
by all necessary corporate (or other entity) action.

               (b) Valid and Binding. This Agreement is the legal, valid, and binding obligation of
Sonics, enforceable against Sonics in accordance with its terms.

               (c) Rights Necessary. Sonics has full power, authority, unrestricted ability, and all
rights necessary: (i) to enter into this Agreement and to perform all of Sonics’ obligations
hereunder; (ii) to provide to Licensee the Licensed Technology; and (iii) to grant to Licensee the
licenses granted under this Agreement. Sonics has obtained any and all consents, permits,
licenses, and authorizations necessary for or in connection with providing the Licensed Technology
to Licensee. Sonics’ entry into or performance of this Agreement does not and shall not violate
any other agreement by which Sonics is bound.

               (d) Compliance with Laws. Sonics and Sonics’ employees, consultants, and contractors
have complied and shall comply with all laws, rules, regulations, ordinances, and codes that are
applicable to the providing of the Licensed Technology.

               (e) Infringement. To the best of Sonics’ knowledge as of the Effective Date, the
Licensed Technology and the use thereof as contemplated by this Agreement: (a) do not and shall not
infringe on any Intellectual Property Rights, rights of publicity or privacy, or other

7

 

proprietary rights of any person, whether contractual, statutory, or at common law; and (b) do
not and shall not violate any applicable laws, rules, regulations, ordinances, or codes.

               (f) Specifications. For a period of ninety (90) days from Sonics’ delivery to
Licensee of each component of the Licensed Technology, the Licensed Technology shall operate in
substantial conformity with all documentation and other detailed and functional specifications for
the Licensed Technology and that the media on which the Licensed Technology is delivered will be
free from defects under normal use. Sonics’ obligations under this Section 7.1(f), at Sonics’
option, are limited to promptly providing the Licensee with a copy of corrected media (or portion
thereof) or refunding the License Fee and any maintenance charges paid hereunder.

               (g) Licensed Technology Schedule. The Licensed Technology Schedule contains: (i) all
of Sonics’ software design tools (including without limitation development tools, synthesis tools,
and verification tools) that have been released to any of Sonics’ customers as of the Effective
Date (other than: (1) tools that have been custom developed for a particular customer and are not
generally available to Sonics’ customers; and (2) tools that Sonics no longer offers to its
customers); and (ii) all of Sonics’ IP cores in the field of on chip or system on chip that connect
IP cores as of the Effective Date.

          7.2 Licensee Representations and Warranties. Licensee hereby represents and warrants
to Sonics and covenants with Sonics as follows:

               (a) Duly Organized. Licensee is duly organized, validly existing, and in good
standing under the laws of the jurisdiction of its organization, and this Agreement has been duly
authorized by all necessary corporate (or other entity) action.

               (b) Valid and Binding. This Agreement is the legal, valid, and binding obligation of
Licensee, enforceable against Licensee in accordance with its terms.

               (c) Compliance with Laws. Subject to the accuracy of Sonics’ representations and
warranties, Licensee and Licensee’ employees, consultants, and contractors have complied and shall
comply with all laws, rules, regulations, ordinances, and codes that are applicable to the
receiving of the Licensed Technology.

EXCEPT AS PROVIDED FOR IN THIS AGREEMENT, LICENSEE ACKNOWLEDGES AND AGREES THAT THE LICENSES
GRANTED UNDER THIS AGREEMENT, THE LICENSED TECHNOLOGY AND THE CONFIDENTIAL INFORMATION ARE PROVIDED
“AS IS” AND THAT SONICS MAKES NO OTHER WARRANTIES UNDER THIS AGREEMENT, EITHER EXPRESS, IMPLIED OR
STATUTORY, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE AND NONINFRINGEMENT OF THIRD PARTY RIGHTS, OR WARRANTIES ARISING FROM A COURSE
OF DEALING, COURSE OF PERFORMANCE, USAGE OR TRADE PRACTICE.

EXCEPT AS PROVIDED FOR IN THIS AGREEMENT, SONICS DISCLAIMS ON BEHALF OF ALL CONTRIBUTORS TO ANY
OPEN SOURCE SOFTWARE USED IN THE LICENSED TECHNOLOGY ALL WARRANTIES AND CONDITIONS, EXPRESS AND
IMPLIED, INCLUDING WARRANTIES OR CONDITIONS OF TITLE AND NON-

8

 

INFRINGEMENT, AND IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE; SONICS EXCLUDES ON BEHALF OF ALL SUCH CONTRIBUTORS ALL LIABILITY FOR DAMAGES, INCLUDING,
BUT NOT LIMITED TO, DIRECT, INDIRECT, SPECIAL, INCIDENTAL AND CONSEQUENTIAL DAMAGES. ALL OPEN
SOURCE SOFTWARE DELIVERED WITH THE LICENSED TECHNOLOGY IS DELIVERED FREE-OF-CHARGE. THE SOURCE
CODE FOR ALL SUCH OPEN SOURCE SOFTWARE IS AVAILABLE FROM SONICS.

	8.	 	INDEMNIFICATION

          8.1     Indemnification. [***] for infringement of any U.S., Japan, or European Union
patent duly issued in the U.S., Japan, or European Union, or for the wrongful use of proprietary
information of any third party, insofar as such suit is based on a claim that the infringement or
wrongful use is attributable to Licensee’s use, without modification, of the Licensed Technology
supplied under this Agreement. In response to any such suit, Sonics will [***]. The obligations of
Sonics stated in this Section 8.1 apply only if [***].

          8.2     Exclusions. Sonics shall have no obligation to defend and shall have no liability
for any costs, losses or damages, for any infringement allegation that is based on: [***].

	9.	 	LIMITATION OF LIABILITY

IN NO EVENT WILL EITHER PARTY HAVE ANY LIABILITY TO THE OTHER HEREUNDER FOR ANY LOST PROFITS, LOSS
OF DATA, OR FOR ANY OTHER INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES ARISING IN ANY WAY OUT OF
THIS AGREEMENT UNDER ANY CAUSE OF ACTION, OTHER THAN FOR (i) A MATERIAL BREACH BY EITHER PARTY OF
THE CONFIDENTIALITY PROVISIONS OF THIS AGREEMENT OR (ii) THE OBLIGATIONS OF SECTION 8
(INDEMNIFICATION) OF THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN INFORMED OF THE POSSIBILITY OF
SUCH DAMAGES. EXCEPT WITH RESPECT TO THE OBLIGATIONS OF SECTION 8 (INDEMNIFICATION) OF THIS
AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY IN AN AMOUNT GREATER THAN
$6,000,000.00; PROVIDED HOWEVER THAT IN THE CASE OF ANY WILLFUL MATERIAL BREACH OF THE
CONFIDENTIALITY PROVISIONS OF THIS AGREEMENT, THERE SHALL BE NO CAP ON LIABILITY THEREFOR.

	10.	 	CONFIDENTIALITY

          10.1 Confidentiality Obligations. A party receiving Confidential Information
(“Receiving Party”) shall treat as confidential all Confidential Information received from the
other party (“Disclosing Party”) and shall not use such Confidential Information except as
expressly permitted under this Agreement. Without limiting the foregoing, the Receiving Party
shall use at least the same degree of care that it uses to prevent the disclosure of its own
confidential information of like importance, but in no event with less than reasonable care, to
prevent the disclosure of Confidential Information. The Receiving Party agrees to limit access to
Confidential Information to those individuals or entities permitted to access the Licensed
Technology in Section 2.2(b) and having a reasonable need to know such information in connection
with this Agreement or their reasonable business needs. The Receiving Party agrees not to provide
access to the Confidential Information to any other individuals or entities without the prior
written consent of the Disclosing Party, except, however that a party may disclose the terms and
conditions of this Agreement to potential investors in confidence, in connection with an actual or
prospective investment, merger or acquisition or similar transaction. Any person to

9

 

whom such Confidential Information is disclosed by the Receiving Party shall be subject to the
same obligations as regards disclosure and non-use as the Receiving Party. The Receiving Party
shall assume responsibility and accept liability for the non-fulfilment of these obligations from
any person given access to the Confidential Information. The Receiving Party shall not directly or
indirectly cause or permit any Confidential Information of the Disclosing Party to be copied or
reproduced unless such copy or reproduction is necessary or appropriate to fulfill the purposes of
this Agreement. Any such copy shall be marked confidential and, when appropriate, marked as
proprietary to the Disclosing Party. Disclosures in nondocumentary form made orally or by visual
inspection shall be reduced to writing, marked confidential and then distributed to all parties
within thirty (30) days of the original communications. The following shall be deemed to be the
Confidential Information of Licensee: (i) terms and conditions of this Agreement; and (ii) all
reports and other information regarding the Devices or the sale of Devices provided by Licensee to
Sonics. The terms and conditions of this Agreement shall also be deemed to be the Confidential
Information of Sonics.

          10.2 Exclusions. The obligations in this Article 10 shall not apply if and to the
extent that the Receiving Party establishes by written proof that the Confidential Information:

               (a) was already known to the Receiving Party prior to its first receipt of the same from the
Disclosing Party;

               (b) was in the public domain on the Effective Date or is subsequently placed in the public
domain without breach of this Agreement;

               (c) was received by the Receiving Party in good faith from a third party lawfully in
possession thereof and without an obligation to maintain the confidentiality of the Confidential
Information;

               (d) was developed independently by the Receiving Party’s employees or subcontractors who have
not had access to any Confidential Information;

               (e) was required by law to be disclosed, provided that notice of such legally required
disclosure is delivered to the Disclosing Party prior to disclosure so that the Disclosing Party
may contest such disclosure; or

               (f) was approved for release in advance and in writing by the Disclosing Party.

          10.3 Continuing Obligation. The obligations imposed by this Article 10 shall expire
five (5) years after the expiration or termination of the Term.

          10.4 Publicity and Press Releases. Without limiting the generality of the foregoing,
except to the extent that Sonics obtains the prior written approval of Licensee (which approval may
be withheld in Licensee’s sole discretion), Sonics: (i) shall not directly or indirectly issue or
permit the issuance of any publicity, press or news release, or other public statement concerning
the relationship between the parties, this Agreement, the terms hereof, or any of the transactions
contemplated hereby; and (ii) shall not use the name, trademarks, or service marks of Licensee in
any promotional materials. Any approval or consent given by Licensee under this Agreement for

10

 

any continued use may be revoked by Licensee at any time by giving to Sonics written notice of
such revocation.

	11.	 	GENERAL PROVISIONS

          11.1 Trademark Grant. Sonics hereby grants to Licensee a nonexclusive,
nontransferable license (without the right to sublicense) to use, reproduce and display any
trademarks owned or controlled by Sonics and authorized explicitly in writing for use by Licensee
(“Trademarks”) in connection with (i) the exercise of Licensee’s rights hereunder with respect to a
Device and/or (ii) any related packaging, marketing, publicity, demonstration, promotional,
advertising, instructional or other material. Licensee agrees to comply with the then-current
Sonics’ trademark use and product-marketing guidelines in conjunction with any sales and marketing
activities of Sonics products. Licensee shall include an appropriate trademark indicator
(“TM” or “®”) in connection with the use of the Trademarks in any packaging, marketing,
publicity, demonstration, promotional, advertising, instructional or other material. Licensee
acknowledges that, as between the parties, all worldwide rights associated with Trademarks and all
goodwill attached thereto belong exclusively to Sonics. Licensee shall not reproduce or use the
Trademarks in any manner whatsoever other than as expressly authorized by this Agreement or
permitted by applicable law without a license. Licensee acknowledges that it has not acquired, and
will not acquire, any right, title or interest in or to the Trademarks except the limited right to
use the Trademarks as expressly set forth in this Agreement. Sonics shall retain the exclusive
right to apply for and obtain registrations for its Trademarks throughout the world. Licensee
agrees to immediately discontinue any use of any Sonics’ Trademarks by Licensee to which Sonics
objects.

          11.2 Severability. If any provision of this Agreement is held to be ineffective,
unenforceable or illegal for any reason, such decision shall not affect the validity or
enforceability of any or all of the remaining portions thereof.

          11.3 No assignment. Neither this Agreement nor any interest therein or part thereof
shall be transferable or assignable by either party, by operation of law or otherwise, without the
other party’s prior written consent; provided, however, that any party may assign this Agreement to
its surviving entity in conjunction with the sale or transfer of substantially all of its assets.

          11.4 Relationship of Parties. The relationship of Licensee and Sonics established by
this Agreement is that of independent contractors, and nothing contained in this Agreement shall be
construed to (i) give either party the power to direct and control the day-to-day activities of the
other, (ii) constitute the parties as partners, joint venturers, co-owners or otherwise as
participants in a joint or common undertaking, or (iii) allow either party to create or assume any
obligation on behalf of the other party for any purpose whatsoever.

          11.5 Governing Law. This Agreement shall be governed in all respects by the laws of
the State of California, except that its conflict of law rules shall not apply. Any action arising
out of any dispute between any of the parties to this Agreement shall be brought in either the
Superior Court for the County of Santa Clara or the United States District Court for the Northern
District of California, and each of the parties hereto hereby submits itself to the exclusive
jurisdiction of such courts for purposes of any such action.

11

 

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

          11.7 Export. All obligations by Sonics to furnish Licensed Technology under this
Agreement are subject to U.S. export control laws and regulations. Licensee recognizes that any
reexport of Licensed Technology may be subject to U.S. export control laws and regulations and
agrees to comply with such laws and regulations prior to undertaking any such reexports to the
extent, of course, such actions are expressly authorized under the terms of this Agreement.
Licensee agrees that, without appropriate government authorization, it will neither re-export or
release the Licensed Technology to a national of a country or to a country identified in Country
Code D:1 or E:2 of Part 740 of the United States Export Administration Regulations (or any
successor regulations), nor export Devices made from the Licensed Technology to a country
identified in Country Code D:1 or E:2 of Part 740 of the United States Export Administration
Regulations (or any successor regulations). The obligations and restrictions of this Section will
survive any termination or expiration of the Term.

          11.8 Entire Agreement. This Agreement (including the Exhibits hereto which are
incorporated herein by this reference) contains the entire agreement and understanding between the
parties with respect to the subject matter hereof and merges and supersedes all prior oral and
written agreements, understandings and representations. No addition or modification to this
Agreement is valid unless made in writing and signed by both parties hereto.

          11.9 Notice. Unless either party notifies the other of a different address, any
notice or other communication required or permitted hereunder shall be sufficiently given, if sent
by facsimile, overnight delivery, registered mail, postage prepaid, return receipt requested,
addressed as follows:

For Sonics:

1098 Alta Avenue, Suite 101

Mountain View, CA 94043

Fax: 650-938-2577

Attention: President

With Copy to: Director, Legal Affairs

Any notice to Licensee must be given to both of the following addresses in order to be
effective: (1) Marvell International Ltd., Argyle House, 41A Cedar Avenue, Hamilton, HM 12,
Bermuda, Attn: President; and (2) Marvell Semiconductor, Inc., 5488 Marvell Lane, Santa Clara,
CA 95054, Attn: Legal Department.

          11.10 Technical Contacts. The parties hereby appoint the following persons as the
technical contacts for this Agreement. The technical contacts shall be responsible for

12

 

coordinating disseminating and receiving all technical information or Licensed Technology,
monitoring the development and use of the Licensed Technology, evaluating any deliverables, and any
other technical discussion relating to this Agreement.

	 	 	 	 	 	 	 
	 
	Sonics Technical Contact
	 	Licensee Technical Contact

	 
	Name:

	 	Dave O’Brien
	 	Name:
	 	Frank Palazzolo
	Title:

	 	VP SOC Solutions
	 	Title:
	 	Functional Verification Manager
	Phone:

	 	+1-650-938-2500 x159
	 	Phone:
	 	408-222-9209
	Mobile:

	 	+1-650-279-6270
	 	Mobile:	 	 
	E-Mail:

	 	obrien@sonicsinc.com
	 	E-Mail:
	 	pal@marvell.com
	 

          IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in
duplicate originals by its duly authorized officers or representatives.

	 	 	 	 	 	 	 
	SONICS, INC.	 	MARVELL INTERNATIONAL LTD.
	 
	 	 	 	 	 	 
	By:

	 	 
	 	By:
	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 
	 	Name:
	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 
	 	Title:
	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	 
	 	Date:
	 	 
	 

	 	 
	 	 	 	 

13

 

EXHIBIT A TO MASTER TECHNOLOGY LICENSE AGREEMENT

COMMENCEMENT NOTICE

	 	 	 	 	 	 	 	 	 
	TO:

	 	Sonics Inc. (“Sonics”)
	 	FROM:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	ATTN:

	 	Program Manager
	 	AT:
	 	 
	 	(“Licensee”)
	 

	 	 	 	 	 	 	 	 
	FAX NO.:

	 	(650) 938-2577
	 	FAX NO.:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	DATE:	 	 	 	(Please provide fax number to which Sonics should respond)
	 

	 	 	 	 	 	 	 	 

In accordance with the terms and conditions of the Master Technology License Agreement entered into
by and between Licensee and Sonics as of                     , 2007 (the “Agreement”) and pursuant to
Section 3.3 thereof, Licensee hereby notifies Sonics of the start of development of a new Device as
identified below:

Development of the following Device has been commenced as of                     , 200  ,
using the Licensed Technology licensed to Licensee in the Agreement.

Name of Licensee Device:

Location where the Device is being designed:

Description:

	 	 	 	 	 	 	 
	Sonics IP Core Used: (check all that apply)	 	Signature:	 	 
	 

	 	 	 	 	 	 

	 
	 	 	 	 	 	 
	     

	 	Sonics MX TM IP Core	 	 	 	 
	 
	 	 	 	 	 	 
	     

	 	SonicsExpress TM IP Core	 	 	 	 
	 
	 	 	 	 	 	 
	     

	 	MemMax® Memory Scheduler IP Core	 	 	 	 
	 
	 	 	 	 	 	 
	     

	 	S3220 IP Core	 	 	 	 

1

 

EXHIBIT B TO MASTER TECHNOLOGY LICENSE AGREEMENT

LICENSED TECHNOLOGY SCHEDULE

     1. DELIVERABLES

[***]

     2. MAINTENANCE SERVICES, TRAINING, TECHNICAL SUPPORT 

          (a) Maintenance Services. Maintenance services will include bug fixes to the Licensed
Technology, and analysis of, and response to reported errors in the Licensed Technology.
Maintenance services will also include all Updates to the Licensed Technology that are made
generally available to other Sonics’ customers.

[***]

Licensee agrees to pay the Maintenance Services fee for the first year within 45 days after
Licensee receives the invoice therefore, which invoice may be issued upon execution of the
Agreement, and at Licensee’s option, for subsequent years. If Licensee fails to pay maintenance
services fees for one or more years after the first year, Licensee may re-start maintenance at any
time thereafter (during the Term of this Agreement) by paying for all maintenance services terms
(that were unpaid) up to and including the then-current maintenance services term. Sonics shall
provide to Licensee maintenance services and customer support based upon the urgency of the request
received from Licensee as follows:

[***]

Sonics shall provide software patches to Licensee in accordance with Sonics’ current patch
management process as provided to Licensee on the Effective Date (as such process may be reasonably
modified by Sonics from time to time upon written notice of such modification to Licensee).

          (b) Training. Training classes and system analysis on the Licensed Technology will be
provided by Sonics’ application engineers. Training classes will be provided, upon request, at the
rate of [***] per class and shall be provided at a Sonics location (or at a Licensee location upon
payment by Licensee of travel and lodging costs).

          (c) Technical Support. Technical support may be purchased in [***] blocks, and each
block shall cost [***].

1

 

     3. LICENSE FEES 

	 	 	 	 	 	 	 
	Sonics IP Core	 	Number of	 	License	 	Payment Due Dates
	 	 	License Uses	 	Fee	 	 
	 
	[***]	 	[***]	 	[***]	 	[***]

	 	 	 	 	 
	[***]	 	[***]	 	 	 	 

	 	 	 	 	 
	[***]	 	[***]	 	 	 	 

	 	 	 	 	 
	[***]	 	[***]	 	 	 	 

	 	 	 	 	 
	[***]	 	[***]	 	 	 	 

	 

	 	 	 	 	 	 	 
	Additional	 	Number of	 	License	 	Payment Due Dates
	Sonics Products	 	Seat Licenses	 	Fee	 	 
	 
	[***]	 	[***]	 	[***]	 	[***]

	 	 	 	 	 
	[***]	 	[***]	 	 	 	 

	 

Licensee will provide to Sonics a Licensee purchase order as soon as reasonably practicable after
the time of execution of the Agreement containing terms consistent with the table(s) above.

          4. ROYALTIES

Royalties for Article 5 of the Agreement shall be calculated pursuant to Section 4.1 or Section
4.2 of this Exhibit B, as applicable.

4.1 Royalty Rate per Device (single die)

Running royalties will be calculated based on a royalty rate for each Device according to the
following formula:

[***]

          4.2 Royalty Rate per Device (Multi Chip Modules or MCM)

Running royalties will be calculated based on a royalty rate for each Device according to the
following formula:

[***]

          5. TERM

The term of this Agreement shall commence on the Effective Date and continue until the earlier
of: (i) [***] after the Effective Date; or (ii) [***] after the first tape out of the first
Device (not including any test chips taped out prior to the Effective Date). Licensee shall
have the option to renew the Term for an additional [***] by giving to Sonics written notice of
renewal thereof at least 30 days prior to the scheduled expiration of the original term (and by
paying the same Licensee Fee for the same Licensed Technology for such renewal term within 45
days after the commencement of such renewal term).

2

 

EXHIBIT C TO MASTER TECHNOLOGY LICENSE AGREEMENT

ROYALTY REPORT

In accordance with the terms and conditions of the Master Technology License Agreement entered into
by and between Licensee and Sonics as of                     , 2007 (the “Agreement”) and pursuant to Section
5.2 thereof, Licensee hereby submits to Sonics the following royalty report and royalty payment:

			
	Fiscal Quarter Ending:	 	
 

			
	Report Date:	 	
 

	 	 	 	 	 	 	 	 	 	 	 
	Name or	 	 	 	 	 	 	 	 	 	 
	Number of	 	 	 	 	 	 	 	 	 	 
	Device	 	 	 	Unit Volume	 	 	 	 	 	 
	incorporating	 	Licensee	 	this fiscal	 	 	 	Royalty	 	 
	Sonics IP	 	Device	 	quarter	 	Net Sales	 	Rate*	 	Royalty Due
	 
	 
	 	 	 	 	 	 
	 	 	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	TOTAL
	 	 	 	 
	 

* The devices that are MCM and the related adjustment factor are as follows:

 

 

 

 

This report is, to the best of my knowledge, a true and correct representation of unit volume,
net sales thereof and royalties due.

			
	     By:	 	
 

			
	     Name:	 	
 

			
	     Title:	 	
 

			
	     Date:	 	
 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]