Document:

License Agreement dated March 4, 2004

 EXHIBIT 10.7 
 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 LICENSE AGREEMENT 
 This Patent License Agreement (“Agreement”) is effective as of Mach 4, 2004 (the “Effective Date”), between STMicroelectronics N.V., registered office at WTC Schiphol Airport, Schiphol
Boulevard 265, 1118 BH Schiphol Airport, Amsterdam, the Netherlands, acting through its Swiss Branch located at 39, Chemin du Champ des Filles, 1228 Plan-les-Ouates, Geneva, Switzerland, The Netherlands (“ST”), and Upek, Inc., a
Delaware corporation with its principal place of business located at 2001 Center Street, Suite 500, Berkeley, California 94704 (“Upek”). 
 Recital 
 WHEREAS, Upek and ST are parties to that certain Contribution Agreement (as defined below) between ST and Upek,
and 
 WHEREAS, ST has agreed to contribute certain assets and grant certain rights to Upek upon the Closing of the transactions contemplated
by the Contribution Agreement, including, but not limited to certain intellectual property rights, and 
 WHEREAS, ST owns or controls,
directly or through Subsidiaries, the Licensed Intellectual Property as defined herein as to which Upek desires to acquire license rights as hereafter provided. 
 NOW, THEREFORE, in consideration of the mutual covenants and conditions hereinafter set forth, it is agreed as follows: 
 Section 1: Definitions 
 1.1 “Business” means the following activities of the ST business unit internally designated as
the TouchChip Division: developing, testing, marketing, supporting, selling and otherwise disposing of Existing TouchChip Products and Existing TouchChip Developments. 
 1.2 “Capture Period” means from the Effective Date up to the fourth anniversary of the Effective Date of this Agreement. 
 1.3 “Companion Chips” means [***]*. 
 1.4 “Contribution Agreement” means the Contribution Agreement dated as of
January 29, 2004 by and between ST and Upek. 
 1.5 “Existing Navigation Device” means a Navigation Device sold by the TouchChip Division at
the time of the Effective Date and for which the definition of Navigator Application refers to the Sensor as opposed to a generic fingerprint sensor. 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 1.6 “Existing TouchChip Developments” means all developments in progress within the TouchChip Division at
the time of the Effective Date, including [***]*. 
 1.7 “Existing TouchChip Products” means products sold by the TouchChip Division at the time of
the Effective Date, including 
 [***]* 
 1.8 “Fingerprint
Biometric Applications” means the use or incorporation of technology in products, sensors, components, services, or other applications for measurement, data capture, enrollment, storage, verification, or analysis of physiological biological
data including, without limitation, fingerprints, toeprints, and other cutaneous (skin) metrics which could be used to identify, or authenticate, an individual. Such products, sensors, services and other applications include, without limitation, all
peripheral devices required for enrollment, storage, analysis, and verification of the physiological data. 
 1.9 “Improvement” means enhancements,
modifications, and derivative works. 
 1.10 “Intellectual Property” means (a) Patents; (b) all trade secret rights arising under the
laws of any jurisdiction; (c) all United States of America and foreign semiconductor Mask Work rights and registrations for such rights; and (d) all copyright rights and all other literary property and author rights, whether or not
copyrightable, and all copyrights and copyrighted interests, including any renewals thereof but will not include any rights in any trademarks, trade names, service marks, logos and the goodwill associated therewith. 
 1.11 “Navigator Applications” means the use of a fingerprint sensor for navigation functionality, such as pointer control, panning, scrolling or tapping
functionality. 
 1.12 “Navigation Device” means a single product that offers both Fingerprint Biometric and Navigator Applications at the
exclusive conditions that (i) such applications are embedded together in a single Subsystem, [***]* 
 1.13 “Non-Compete Period” shall have
the meaning ascribed to it in the Contribution Agreement. 
 1.14 “Patents” means all United States of America and foreign patents and applications
therefore and all reissues, divisions, renewals, reexaminations, extensions, provisional, continuations, continuing prosecution applications and continuations-in-part thereof. 
 1.15 “Process Patents” means patents whose claims are directed toward processes for the manufacturing of semiconductor devices. 
 1.16 “Products” means the Existing TouchChip Products, the Existing TouchChip Developments, and Existing Navigation Device. 
 1.17 “Sensor” shall mean the circuits designed (i.e., the representation of an electronic circuit in a net list format) by the Business to [***]* 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 1.18 “ST Competitor” means the legal entities, as they exist as of the Effective Date, listed on Exhibit
C of this Agreement. 
 1.19 “ST Licensed Intellectual Property” means the ST Licensed Patents and the ST Licensed Pending Patent Applications.

 1.20 “ST Licensed Patents” means the issued patents specifically listed on Exhibit A hereto. 
 1.21 “ST Licensed Pending Patents Applications” means the invention disclosures and patent applications listed on Exhibit B hereto. 
 1.22 “ST Non-Assert Patents” means all claims of all classes or types of Patents, including but not limited to, design patents, utility models and applications
therefore, in all countries of the world, which have a first effective filing date as of the Effective Date and which are owned or controlled, as of the Effective Date by ST or its Subsidiaries, and under and to the extent to which, and subject to
the conditions under which ST or its Subsidiaries may have as of the Effective Date, the right to grant rights of the scope granted herein without the payment of royalties or other consideration to third persons except for payment to third persons
for inventions made by said third persons while employed by ST or its Subsidiaries. [***]* 
 1.23 “ST Process” means a semiconductor manufacturing
process owned or controlled by ST at any time prior to or during the Term, whether or not patented. 
 1.24 “Sublicensing Breach” means breach of
the prohibition against sublicensing in Section 2 of this Agreement. 
 1.25 “Subsidiary(ies)” means a corporation, company, partnership or
other legal entity more than fifty percent (50%) of whose outstanding shares or securities or interests (representing the right to vote for the election of directors or other managing authority) are, on the Effective Date or hereafter during
the Term owned or controlled, directly or indirectly, by a party hereto, but such corporation, company, partnership or other entity shall be deemed to be a Subsidiary only so long as such ownership or control exists. 
 1.26 “Subsystem” means a [***]* 
 1.27 “Term” shall have
the meaning ascribed to it in Section 5.1 below. 
 1.28 “Upek Improvements” shall mean all Improvements made to ST Licensed Intellectual
Property made by Upek during the Capture Period, whether or not patented and all Intellectual Property inherent therein. 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 1.29 “Watchlist Patents” shall mean the patents listed in Exhibit D of this Agreement. 

Section 2: License 
 2.1 Subject to the terms of this
Agreement, ST, for itself and on behalf of any Subsidiary holding record title, hereby grants to Upek an irrevocable, perpetual, worldwide, non-exclusive, royalty-free, fully paid-up, non-sublicensable license to the ST Licensed Intellectual
Property to make, have made, design, have designed, use, sell (directly or indirectly), offer for sale, import or otherwise dispose of (i) products and services in the field of Fingerprint Biometric Applications, and (ii) Navigation
Device. 
 2.2 Immediately after the Non-Compete Period the license set forth above in Section 4.1 above shall be read as follows: 
 Subject to the terms of this Agreement, ST, for itself and on behalf of any Subsidiary holding record title, hereby grants to Upek an irrevocable, perpetual, worldwide,
non-exclusive, royalty-free, fully paid-up, non-sublicensable license to the ST Licensed Intellectual Property to make, have made, design, have designed, use, sell (directly or indirectly), offer for sale, import or otherwise dispose of any products
and services. 
 Section 3: Non-Assertion Covenant by ST 
 3.1 ST and its Subsidiaries hereby agree not to assert against Upek, trade secrets, mask work right, copyright, and/or any claim of the ST Non-Assert Patents; provided, however, that such agreement not to assert
(i) is limited to the fields of Fingerprint Biometric Applications and Navigation Applications, (ii) is limited to ST Non-Assert Patents and/or trade secrets, mask work right, copyright, owned by ST or its Subsidiaries, Embodied (hereafter
defined in Section 3.2 below) in the Products, and (iii) does not include Intellectual Property directed toward processes for the manufacturing of semiconductor devices. 
 3.2 As used in Section 3.1 above, ST Non-Assert Patents and/or trade secrets, mask work right, copyright are Embodied in the Products [***]*. 
 3.3 ST and its Subsidiaries also agree to extend the non-assertion covenant provided in Section 3.1 hereof to [***]* 
 3.4 As used in Section 3.3, a trade secret, mask work or copyright and/or a patent claim is “Embodied” in a Product [***]*. 
 [***]*

  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 Section 4: License and covenant not to assert by Upek 
 4.1 Upek will own all right, title and interest in and to any Upek Improvements, subject to ST’s continued ownership of the ST Licensed Intellectual Property to
which such improvement or derivative work applies. 
 4.2 Upek hereby grants to ST and its Subsidiaries a perpetual, worldwide, non-exclusive, royalty-free,
fully paid-up, non-transferable, non-sublicensable (except as hereafter set forth in this Section 4.1), license to the Upek Improvements patented by Upek during the Capture Period to make, have made, use, modify, have modified, sell, offer for
sale, import, export and otherwise dispose of products outside of the fields of Fingerprint Biometric Applications. [***]* 
 4.3 Upek hereby agrees not to
assert against ST and its Subsidiaries the Upek Improvements that are not subject matter of a patent during the Capture Period. Upek also agrees to extend the non-assertion covenant provided in this Section 4.3 hereof to [***]*. 
 4.4 Notwithstanding anything herein to the contrary, Upek shall have no obligation to disclose Upek Improvements or provide technical assistance regarding Upek
Improvements to ST. 
 Section 5: Term and Termination 
 5.1 This Agreement shall be effective as of the Effective Date and [***]*. 
 5.2 ST may, in its discretion, upon written
notice to Upek, and in addition to its rights and remedies provided under this Agreement and at law or in equity, terminate the licenses granted to Upek hereunder in the event Upek files a petition in bankruptcy or insolvency, any adjudication that
Upek is bankrupt or insolvent, the appointment of a receiver or trustee for all or substantially all of the property of Upek, the making by Upek of any assignment or attempted assignment for the benefit of creditors, or the institution of any
proceeding for the liquidation or winding up of Upek’s business or upon the effectiveness of a Upek certificate of dissolution, provided that such “default event” has not been remedied within fifteen (15) days of receipt of
written notice specifying such event from ST. 
 5.3 In the event of a Sublicensing Breach by Upek and failure by Upek to cure the Sublicensing Breach [***]*
after written notice from ST, ST may terminate or suspend this Agreement, without liability, unless the Sublicensing Breach reasonably requires [***]* to correct and Upek has begun substantial corrective actions to remedy the default and is
diligently pursuing such actions, in which event, Upek shall have so much time as is reasonably necessary to cure such default. 
 5.4 In the event of any
breach of this Agreement by Upek other than a Sublicensing Breach, ST may terminate the Agreement upon [***]* written notice if such breach is not cured within such [***]*. In the event Upek contests the breach specified by ST in the notice of
termination, Upek, within the foregoing [***]* period, will notify ST of its objection to the breach invoked by ST in the notice of termination. In such event, the dispute shall be immediately submitted to an arbitral tribunal consisting of one
(1) arbitrator appointed by the Court of Arbitration of the International Chamber 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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of Commerce (ICC). The arbitration tribunal, including all staff, all witnesses, and attending non-parties, shall be legally bound by agreements and/or
orders to prevent disclosure of any information which may be disclosed to them in connection with arbitration proceedings conducted hereunder. The arbitration shall take place in the State of Delaware, United States of America in the English
language and according to the Rules of conciliation and arbitration of the ICC. The arbitrator shall apply the State of Delaware law to the merits of the dispute and in all cases shall decide in accordance with the terms of this Agreement. The
arbitrator shall decide if the alleged default invoked by ST in the notice of termination is a breach. If the arbitrator decision is that the alleged default is a breach, Upek shall have thirty (30) days from the date of such decision to cure
the breach. In the event such breach is not cured within such (30) days period, the Agreement shall immediately terminate The arbitral decision and award shall be final and binding and shall deal with the questions of costs of arbitration as
follows: 
  

	 	•	 	 [***]* 

  

	 	•	 	 [***]* 

 5.5 Upon termination of this Agreement and
during the proceeding set forth in Section 6.4 above, ST shall have the right to pursue all available remedies at law or in equity that it may elect. 
 5.6 This Agreement also may be terminated by written agreement executed by both Parties. 
 5.7 Sections 1 [***]* and 7 hereof shall survive any
termination of this Agreement. 
 Section 6: Dispute Resolution 
 6.1 Subject to Section 6.2 hereof, the parties shall make a good faith attempt to resolve any dispute or claim arising out of or related to this Agreement amicably by mutual agreement. Any such dispute which is
not resolved by agreement within a period of sixty (60) days after the date of delivery of a notice describing the dispute referred to as “Notice of Claim” shall be finally settled by an arbitral tribunal consisting of three
arbitrators appointed by the Court of Arbitration of the International Chamber of Commerce (ICC). The arbitration tribunal, including all staff, all witnesses, and attending non-parties, shall be legally bound by agreements and/or orders to prevent
disclosure of any information which may be disclosed to them in connection with arbitration proceedings conducted hereunder. The arbitration shall take place in the city of Delaware, United States of America in the English language and according to
the Rules of conciliation and arbitration of the ICC. The arbitrators shall apply the State of Delaware law to the merits of the dispute and in all cases shall decide in accordance with the terms of this Agreement. The arbitral decision and award
shall be final and binding and shall deal with the questions of costs of arbitration an all matters related thereto. 
 6.2 Nothing herein, however, shall
prevent either party from seeking interim injunctive relief from a court of appropriate jurisdiction. 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 Section 7: Miscellaneous 
 7.1 Each party hereto represents and warrants that it has the right to grant the rights and licenses contained herein on behalf of itself and its Subsidiaries. 
 7.2 ST represents and warrants to Upek that (a) [***]*. 
 7.3 Nothing
contained in this Agreement shall be construed as: 
  

	 	a)	a warranty or representation by either party hereto or its Subsidiaries as to the validity, scope or enforceability of any patent or utility model; or 

  

	 	b)	a warranty or representation by either party hereto that any acts covered by the rights granted hereunder will be free from infringement of any third party Intellectual Property; or

  

	 	c)	an agreement by either party hereto to bring or prosecute actions or suits against third parties for infringement or conferring any right to bring or prosecute actions or suits
against third parties for infringement; or 

  

	 	d)	conferring any right to use in advertising, publicity or otherwise, any trademark, trade name or names, or any contraction, abbreviation or simulation thereof, of either party
hereto or its Subsidiaries; or 

  

	 	e)	conferring upon either party or any of its Subsidiaries any obligation to file any patent application or to secure any patent or maintain any patent application or patent in force;
or 

  

	 	f)	an obligation by either party hereto to furnish any technical information or know-how. 

 For the avoidance of doubt, the provisions of this Section 8.3 are only applicable to this Agreement. 
 7.4 This
license to Licensed Patents set forth in Section 2.1 of the Agreement may be assigned [***]*. The non-assert covenant may be assigned together with the license [***]*. Other than as set forth in the two immediately preceding sentences (and the
rights and obligations herein), this Agreement may not be assigned by either party, to any third party including without limitation through a U.S. Bankruptcy Code Chapter 11 reorganization, without prior written consent of the other party; provided,
however, that ST may assign this entire Agreement to an entity acquiring all or substantially all of its assets by merger, acquisition, sale or otherwise. In the event that this Agreement is assigned to a third party, this Agreement shall be binding
upon successors and assigns of the assigning party. 
 7.5 Upek acknowledges and agrees that all Intellectual Property licensed herein (including the
non-assert provisions) are granted on an “AS-IS” basis, and neither ST nor any of its Subsidiaries makes 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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any representations or extends any warranties whatsoever, express, implied or statutory, with respect thereto, including without limitation any implied
warranties of merchantability, fitness for a particular purpose, title, enforceability or non-infringement. Without limiting the generality of the foregoing, neither ST nor any of its Subsidiaries makes any warranty or representation that any
manufacture, use, importation, licensing, offer for sale or sale of any product or service will be free from infringement of any patent or other Intellectual Property of any third party. For the avoidance of doubt, the provisions of this
Section 7.5 is only applicable to this Agreement and shall not limit in any way the representations and warranties set forth in the Contribution Agreement. 
 7.6 Nothing contained in this Agreement shall be construed as conferring any rights by implication, estoppel or otherwise, under any Intellectual Property, other than the rights expressly granted in this Agreement. [***]* 
 7.7 Neither party assume any responsibilities or obligations pursuant to this Agreement whatsoever, other than the responsibilities and obligations expressly set forth
in this Agreement or in a separate written agreement between the parties. Without limiting the generality of the foregoing, neither party, nor any of its Subsidiaries, is obligated to [***]*. 
 7.8 Legal Notices. All legal notices provided for in connection with this Agreement shall be given in writing and shall be effective (i) upon receipt, when served
by personal delivery; or (ii) on the third day following the date of transmittal when transmitted by express mail (including Federal Express or a similar type of express mail); or (iii) on the 7th day following the date of mailing when
sent by registered airmail of the sender’s country with postage prepaid, addressed to the party as follows, or to a changed address as the party shall have specified by prior written notice: 
 ST: STMicroelectronics N.V. 39, Chemin du Champ des Filles, 1228 Plan-les-Ouates, Geneva, Switzerland: General Counsel; and 
 Upek: Upek, Inc. 2001 Center Street, Suite 500, Berkeley, California 94704 Attention: Chief Executive Officer. 
 7.9 The waiver by either party of the remedy for the other party’s breach of or its right under this Agreement will not constitute a waiver of the remedy for any
other similar or subsequent breach or right. 
 7.10 If any provision of this Agreement is or becomes, at any time or for any reason, unenforceable or
invalid, no other provision of this Agreement shall be affected thereby, and the remaining provisions of this Agreement shall continue with the same force and effect as if such unenforceable or invalid provisions had not been inserted in this
Agreement. 
 7.11 Neither party shall make any announcement or press release regarding this Agreement or any terms thereof without the other party’s
prior written consent. The Parties agree to immediately issue 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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a press release upon the execution of the Agreement. The parties acknowledge and agree that the terms of this Agreement are confidential; provided, however,
that such terms may be disclosed, on a confidential basis, to a party’s consultants, advisors, legal counsel, and existing or potential investors 
 7.12 No changes, modifications or alterations to this Agreement shall be valid unless reduced to writing and duly signed by the respective authorized representative of each party. 
 7.13 This Agreement shall be interpreted, construed and enforced in accordance with the laws of the United States and the State of Delaware without regard to the
conflict of law provisions of that State. 
 7.14 No party will be deemed to be the drafter of the Agreement. The Agreement will be deemed to have been
jointly prepared by the parties. If the Agreement is ever construed, whether by a court or by an arbitrator, such court or arbitrator will not construe the Agreement or any provision hereof against any party as drafter. 
 7.15 This Agreement may be executed in two or more counterparts, all of which, taken together, shall be considered to be one and the same instrument. 
 7.16 This Agreement, the Contribution Agreement and the Related Agreements (as defined in the Contribution Agreement) constitute the entire agreement between the parties
with respect to the subject matter hereof and shall supersede all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof. To the extent there is a conflict between this Agreement,
the Contribution Agreement and any related documents referenced in the Contribution Agreement relating to the rights and obligations set forth in this Agreement, the terms of this Agreement shall govern. 
 [The remainder of this page is intentionally left blank.] 
  
  

					
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 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in their respective corporate manner by their duly authorized representatives on the
date written below. 
  

							
	For STMicroelectronics N.V.	 	For Upek, Inc.
		
	Name: A. Dutheil	 	Name: Alan Kramer
		
	Title: Corporate Vice-President	 	Title: Chief Executive Officer
		
	Strategic Planning, Human Resources.	 	
		
	Date: March 4, 2004	 	Date: March 4, 2004
				
	Signature:	  	/s/ A. Dutheil	 	Signature:	 	/s/ Alan Kramer

  

 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 Exhibit A 
 ST Licensed Patents 
 [***]* 
  

	*	Indicates that the exhibit has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the exhibit.

 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 Exhibit B 
 ST Licensed Pending Patent Applications 
 [***]* 
  

	*	Indicates that the exhibit has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the exhibit.

 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 Exhibit C 
 ST Competitors 
 [***]* 
  

	*	Indicates that the exhibit has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the exhibit.

 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 Exhibit D 
 Watchlist Patents 
 [***]* 
  

	*	Indicates that the exhibit has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the exhibit.Purchase and Supply Agreement

 EXHIBIT 10.8 
 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
 PURCHASE AND SUPPLY AGREEMENT

 This Purchase and Supply Agreement dated as of March 4, 2004 (The “Effective Date”) is made by and between Upek,
Inc., a Delaware corporation with its principal place of business located at 2001 Center Street, Suite 500, Berkeley, California 94704 (hereafter “Upek”), and STMicroelectronics N.V. with its registered office at WTC Schiphol
Airport, Schiphol Boulevard 265, 1118 BH Schiphol Airport, Amsterdam, the Netherlands, acting through its Swiss Branch located at 39, Chemin du Champ des Filles, 1228 Plan-les-Ouates, Geneva, Switzerland (hereafter “ST”). 
 RECITAL 
 Whereas, ST and Upek
are parties to a certain Transaction as defined below, 
 Whereas, in connection with the Transaction, Upek desires to purchase from ST and
its Affiliates (hereafter defined) the Wafers (hereafter defined) and the Products (hereafter defined) on the terms and subject to the conditions set forth herein, and 
 Whereas, ST is willing to sell the Wafers and Products to Upek on the terms and subject to the conditions set forth herein. 
 NOW, THEREFORE, in furtherance of the foregoing Recitals and in consideration of the mutual covenants and obligations set forth in this Agreement, the Parties agree as follows: 
 Section 1: Definitions 
 Unless the provisions of this Agreement
otherwise provide, the following capitalized terms used in this Agreement shall have the meaning set out below. 
 1.1 “Active Capacitive-Sensing
Technology” shall mean technology based on a Sensor cell which contains an active charge integrator, with a feedback circuit composed of two side by side capacitor plates, as generally described in the schematics resulting from the patent
applications licensed to Upek pursuant to the Asset Purchase Agreement and any improvement or enhancement to such technology. 
 1.2 “Affiliate”
means an entity controlling, controlled by, or under common control, now and hereafter with a Party. For purposes of this Definition “control” shall mean greater than 50% of the voting rights of such entity. 
 1.3 “Agreement” shall mean this Purchase and Supply Agreement, together with all Appendices hereto, as the same may be hereafter amended, modified or
supplemented from time to time by mutual agreement of the Parties. 
  

 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 1.4 “Companion Chips” shall mean [***]*. 
 1.5 “Contract of Sales” shall mean an Order accepted by ST. 
 1.6 “CMP Planarization” shall mean
chemical mechanical planarization, or CMP, which is a process whereby a chemical reaction increases the mechanical removal rate of a material, by polishing off high spots on wafers or films deposited on wafers, flattening the film or wafer.

 1.7 “Current Products” shall mean TCS1 Products or TCS2 Products or TCS3 Products. 
 1.8 “Defect-free Die” shall mean [***]*. 
 1.9 “Defect-free
Yield” shall mean [***]*. 
 1.10 “Defect-free Yield Requirement” shall mean: [***]*. 
 1.11 “Delivery Date” shall mean the delivery date expressly confirmed by ST upon acceptance of an Order. 
 1.12 “Designs” shall mean all designs, test tapes, GDSII database tapes, data, and information [***]* to manufacture Wafers or Products. 
 1.13 “Facility” shall mean a manufacturing plant owned or controlled by ST or an Affiliate of ST. 
 1.14 “Finished Form” shall mean an integrated circuit that has been wafer tested, packaged and final tested, and is in a form ready for shipment to Upek.

 1.15 “Foundry Services” shall mean the services of one of the semiconductor manufacturing companies with which ST has a wafer manufacturing
relationship. 
 1.16 “Initial Supply Period” shall mean the [***]*. 
 1.17 “Initial Wafer Commitment” shall mean [***]*. 
 1.18 “Lot Size” shall mean a group of Wafers
[***]*. 
 1.19 “Manufacturing Processes” shall mean (i) the manufacturing processes [***]* for the production of the Sensor in Wafers form or
Products form, and (ii) the manufacturing process [***]* for the production of the Companion Chips in Wafers form. 
 1.20 “Misprocessing”
shall mean a confirmed deviation from the manufacturing flow that would result in the Wafers not meeting the Specifications. 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 1.21 “Orders” shall mean the purchase orders for Wafers or Products placed by Upek for ST from time to
time. 
 1.22 “Parties” shall mean ST and Upek. 
 1.23
“Party” shall mean one of the Parties. 
 1.24 “Process Specification” shall mean the ST documentation describing the manufacturing flow,
and the process steps within the manufacturing flow of the Manufacturing Processes and the relevant process parameters values. 
 1.25 “Products”
shall mean Sensors, or Companion Chips, in Finished Form. 
 1.26 “Qualification Date” shall mean the execution by both Parties of a specific
document confirming that a Wafer or a Product, as applicable, is successfully qualified. 
 1.27 “Risk Production Orders” shall mean the purchase
orders for wafer level Products placed by Upek and accepted by ST prior to the Qualification Date. 
 1.28 “Sensor” shall mean [***]*. 

1.29 “Specifications” shall mean for each Manufacturing Process the design rules and design kit models 
 1.30 “Software” shall mean the software (in object code form) to be used in the Sensor where such Software is actually provided by Upek to ST to be
incorporated during the manufacturing of the Wafers or Products. 
 1.31 “TCS1 Product” shall mean the area sensor [***]*. 
 1.32 “TCS2 Product” shall mean the area sensor [***]*. 
 1.33
“TCS3 Product” shall mean the strip sensor [***]*. 
 1.34 “Total Number of Die” shall mean the gross die per wafer based on [***]*.

 1.35 “Transaction” shall mean the combination of transactions effective as of the date hereof, whereby ST is contributing certain assets for
Preferred Stock of Upek, licensing certain intellectual property rights and entering into this Agreement. 
 1.36 “Term” shall mean the period
during which this Agreement is in effect, as more specifically set forth in Section 15 of this Agreement. 
 1.37 “Wafer(s)” shall mean a
semiconductor wafer [***]*. 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 The appendices hereto shall be taken, read and construed as essential parts of this Agreement and are incorporated
herein by reference. 
 The headings in this Agreement are inserted for convenience of reference only and shall not be taken, read or construed as essential
parts of this Agreement. 
 Words applicable to natural persons include any body of persons, company, corporation, firm or partnership, corporate or
incorporate, and vice versa. Words importing the masculine gender shall include the feminine and neuter genders, and vice versa. Words importing the singular number shall include the plural number, and vice versa. 
 Section 2: Qualification of Products and Supply of Risk Wafers 
 2.1 Upek’s confirmation that a Wafer or Product, as applicable, is successfully qualified shall be evidenced by a document signed by both Parties. ST will provide Upek with a representative sample of each Product for inspection and
qualification purpose. 
 2.2 Subject to Section 2.3 and if a qualification procedure was required, starting from the Qualification Date Upek will have
the right to start placing Orders with ST for quantities of Wafers or Products in accordance with Section 6 below. 
 2.3 Upek may place Risk Production
Orders for Wafers until the qualification procedure is completed in accordance with Section 2.1 above. In the event of Misprocessing encompassed by accepted Risk Production Order(s), ST shall replace the Wafers affected by such Misprocessing
[***]*. 
 Section 3: Prototyping 
 3.1 Unless
already in ST’s possession, Upek will deliver to ST for each Product a GDSII tape for use by ST for manufacturing purpose. ST will augment the database with ST frame data for the appropriate manufacturing process and will contract an
appropriate mask shop to acquire masks or reticules where necessary. 
 3.2 The quantities of and prices for prototype Wafers to be manufactured by ST will
be agreed upon by the Parties [***]*. 
 3.3 [***]*. 
 Section 4: Purchase and Sale Commitments. 
 4.1 Upek commits to purchase the Initial Wafer Commitment during the Initial Supply Period;
provided, however, that such Wafers have passed qualification pursuant to Section 2.1 and the price of such Wafers [***]*. 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 4.2 ST commits to supply Upek the Initial Wafer Commitment, [***]*, subject to the forecasting requirements of
Section 6. In the event at the end of the Initial Supply Period Upek has not purchased from ST the Initial Wafer Commitment, [***]* subject to any reduction as set forth in Section 6.6 below. 
 4.3 Following the Initial Supply Period until the end of the Term and subject to the terms and conditions of this Agreement, ST will use reasonable efforts to supply
Upek with Wafers and/or Products [***]* and [***]*. 
 Section 5: Changes. 
 5.1 If major changes or modifications are made by ST to the Specifications Upek will be informed of such changes as early as possible. [***]* 
 5.2 Should ST decide to port the Manufacturing Process to an ST Facility different from the ST Facility that is currently, as of the Effective Date, manufacturing the Wafers or Products and outside of the already
agreed port [***]*. 
 5.3 ST reserves the right to modify or change the Manufacturing Process. In such event the change of Manufacturing Process will be
made in accordance with ST’s process change policy attached hereto as Appendix 1. 
 5.4 Should ST decide to discontinue the manufacturing of
Wafers or Products, ST will notify Upek through a Product Termination Notification (“PTN”). Thirty (30) days after this notification, the following rules will apply: [***]* ST will also use reasonable efforts to provide Upek with
access to another manufacturing process, provided that such shall not be deemed to oblige ST to provide Upek with any manufacturing process. 
 Section 6: Production 
 6.1 Upek shall provide ST with its volume requirements for Wafers or Products for each of the Manufacturing
Processes pursuant to a rolling forecast subject to the following conditions: 
  

	 	a)	A [***]* rolling forecast updated [***]*. 

  

	 	b)	A [***]* rolling forecast will be presented [***]*. 

  

	 	c)	[***]* such Orders shall be deemed accepted by ST, upon express confirmation by ST of a Delivery Date, and a Contract of Sale. 

 6.2 Each Order shall be sent to the address to be provided by ST. 
 Quantities specified in each Order shall be in accordance with the Lot Size for each Wafer or Product ordered. [***]* 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 6.3 Cancellation of Contract of Sales by Upek is possible provided that (i) the cancellation is [***]* the
quantity of Wafers [***]* or Products stated in the Contract of Sale concerned by the cancellation, and (ii) subject to the following: 
 6.3.1 With
respect to the sale and delivery of Wafers: 
  

	 	a)	At no cost or charge to Upek, provided that Upek provides ST with written notice of such cancellation [***]* prior to the Delivery Date set forth in the Contract of Sale affected by
the cancellation; 

  

	 	b)	If the cancellation is requested within [***]* prior to the Delivery Date of set forth in the Contract of Sale affected by the cancellation, the fee, to be paid by Upek, equal to
[***]* of the Contract of Sale affected by the cancellation, plus a fraction of [***]* of the Contract of Sale affected by the cancellation based on the number of masks already processed at the time the request for cancellation is made.

 6.3.2 With respect to the sale and delivery of Products: 
  

	 	a)	at no cost or charge to Upek provided that Upek provides ST with written notice of such cancellation [***]* prior to the Delivery Date set forth in the Contract of Sale affected by
the cancellation; 

  

	 	b)	If the cancellation is requested within [***]* prior to the Delivery Date set forth in the Contract of Sale affected by the cancellation, the fee, to be paid by Upek, equal to
[***]* of the Contract of Sale affected by the cancellation; 

  

	 	c)	If the cancellation is requested within [***]* prior to the Delivery Date of set forth in the Contract of Sale affected by the cancellation, the fee, to be paid by Upek, equal to
[***]* of the Contract of Sale affected by the cancellation. 

 6.4 Upek may reschedule a Contract of Sales provided that the rescheduling is
limited to [***]* stated in the Contract of Sale affected by the rescheduling; provided that: 
  

	 	1.	The rescheduled delivery date is [***]* after the Delivery Date applicable to the Contract of Sale affected by the rescheduling. 

  

	 	2.	No delivery originally scheduled for [***]* can be rescheduled to [***]*. 

  

	 	3.	[***]* 

 6.5 ST will use reasonable effort to deliver all lots [***]*
containing any of the Current Products (hereafter a “Lot”) [***]* acceptance of an Order (hereafter the “Turnaround Time”). In the event of any forecasted delay in such wafer delivery, ST will inform Upek [***]*. The Turnaround
Time will be reviewed by the Parties [***]*. 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 6.6 In the event that a Lot is not shipped within the Delivery Date the Initial Wafer Commitment will be reduced by
an amount corresponding to the number of wafers [***]*. 
 6.7 Subject to the terms of Section 8.2 of this Agreement, in the event that a Lot delivered
to Upek does not meet the Defect-free Yield Requirement (the “Low Yield Lot”), Upek may decide not to reject the Wafers in such event the following will apply: 
 [***]* 
 6.8 In the event that prior to delivery a Lot tested by ST is deemed by ST a [***]*, the following will apply:

 [***]* 
  

	 	Ø	In the event Upek informed ST that it accepts the delivery of the [***]* (the “Acceptance Notice”), such acceptance will trigger the following consequences:

 [***]* 
 6.9 In accordance with Section 8.2
below if the [***]* is replaced by ST with another production lot, the additional elapsed delivery time, [***]*, will reduce the Initial Wafer Commitment, in accordance with the terms of Section 6.6 above. 
 6.10 [***]* 
 Section 7: [***]* 
 7.1 [***]* 
 Section 8: Shipment of Product 
 8.1 All shipments of Products shall be FOB from the Facility. Ownership and risk of loss or damage to the Products shall pass to Upek at ST’s delivery of the
Products to the carrier at the FOB point. ST will use reasonable efforts in meeting the Delivery Date stated in the Contract of Sales. In the event that any Wafers or Products scheduled for delivery is [***]* late and Upek production is affected,
Upek may request that the Wafers or Products be shipped and delivered via a different mode of transportation at ST’s expense and ST will make reasonable efforts to fulfill the request. 
 8.2 Within [***]* after delivery to Upek of the Wafers or Products, provided that such [***]*, Upek will inspect them and give written notice by registered or certified
mail to ST of any Wafers or Products rejected, describing the Wafers or Products rejected and specifying in detail the reason or reasons why the rejected Wafers or Products do not conform. Upon receiving authorization and shipping instructions from
authorized personnel of ST, Upek may return rejected Wafers or 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
		 	7	 	

 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 
Products, transportation charges prepaid, for inspection by ST and for replacement, if the rejection is confirmed as valid by ST. Upek will be deemed to have
irrevocably accepted any and all Wafers or Products with respect to which Upek has failed to give ST written notice of rejection by registered or certified mail [***]*. ST may charge Upek any costs resulting from the testing, handling, and
disposition of any Wafers or Products returned by Upek that are not found by ST to be non-conforming, provided ST has performed reasonable tests to so determine, and ST has shared the results of such tests with Upek. 
 8.3 If the sale Agreement calls for delivery by installments, each such installment will be deemed sold under a separate and independent Agreement, and default in any
shipment or delivery shall not invalidate this Agreement as it pertains to any other shipments or deliveries. Delay in delivery of any installment will not relieve Upek of its obligation to accept remaining deliveries. 
 8.4 [***]* ST reserves the right to allocate production and deliveries among its various customers at ST in its sole discretion under any circumstances. 
 Section 9: Prices and Terms of Payment 
 9.1 The prices for
Wafers and Products sold to Upek during the Term shall be as follows: 
  

	 	a.	During the Initial Supply Period the base price for [***]*. 

  

	 	b.	[***]* 

  

	 	c.	For all Products and all Wafers, [***]* the prices will be negotiated, in good faith, on a yearly basis and shall be based on the most favorable prices offered by ST to other
customers for products in similar technologies and volume and under substantially the same terms and conditions. 

  

	 	d.	Pricing for all Wafers will be subject to the adjustments set forth in Sections 6.7, 9.1(b), and 9.1(e) of this Agreement. 

  

	 	e.	[***]* such service will be charged on a price per hour equal to [***]*. In the event a different platform [***]* is used in the future the hourly price for such use will be agreed
upon by the Parties. 

 9.2 All payments shall be made by Upek in US Dollars within [***]* from Upek’s [***]*. All prices are exclusive of
(a) any taxes now or existing or hereafter imposed, including but not limited, to any excise tax, sales tax, or value added tax; (b) transportation, clearance, forwarding and insurance costs; and (c) any duty. 
 9.3 Each shipment of Wafers or Products shall constitute an independent transaction and Upek shall pay for same in accordance with these payment terms. Where ST has
extended credit to Upek, terms of payment shall be [***]*. The amount of credit may be changed, or credit withdrawn, or 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
		 	8	 	

 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 
terms of payment changed, by ST at any time. Unless credit is extended, payment will be required in full prior to shipment. In the event Upek becomes the
subject of a bankruptcy or other insolvency proceeding, or fails to pay ST’s invoices as they become due, ST may cancel any Contract of Sales then outstanding. 
 9.4 [***]*. Upek is in no event entitled to make reductions on the invoice unit prices or quantities without prior written approval of ST. 
 Section 10: Foundry and Other Services 
 10.1 During the Term, upon the request of Upek, ST will use
commercially reasonable efforts to make available to Upek the benefit of its existing Foundry relationships so that any Foundry already qualified on the Wafers or Product will be available to Upek. In the event Upek requests the use of such Foundry
Services, ST will [***]*. In the event Foundry Services are utilized and unless the parties otherwise agree, [***]*. In such event, and notwithstanding anything to the contrary in this Agreement, the Products will be sold by ST or its Affiliates to
Upek “AS IS” WITH ALL FAULTS, WITHOUT ANY WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY (IF ANY) WARRANTIES OF: MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, WORKMANLIKE EFFORT AND
LACK OF NEGLIGENCE. ALSO THERE IS NO WARRANTY, DUTY OR CONDITION OF TITLE, QUIET ENJOYMENT, QUIET POSSESSION, CORRESPONDENCE TO DESCRIPTION OR NONINFRINGEMENT. THE ENTIRE RISK ARISING OUT OF USE OR PERFORMANCE OF THE PRODUCTS REMAINS WITH UPEK.

 10.2 With respect to the Sensor Wafers, Upek will have the option to directly develop an alternate supplier in addition to an ST Foundry. [***]* For
the avoidance of doubt, this Section 10.2 applies only and solely for the manufacturing steps applicable for the Sensor Wafers. 
 10.3 Upek may request
ST to provide related services such as testing and quality assurance services. The terms and conditions for such services shall be negotiated in good faith between the parties. 
 Section 11: Warranty 
  

	11.1	With respect to the sale and delivery of Wafers: 

 11.1.1 ST
warrants that the Wafers shipped by ST to Upek [***]*. 
 [***]* 
 11.1.3 This warranty shall not apply to [***]*. 
 11.2 With respect to the sale and delivery of Products: 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 11.2.1 ST warrants that during the Warranty Period [***]*. This warranty shall not apply to any defect caused by
mishandling, misuse, neglect or improper testing or repair attributable to Upek, its contractors or its customers. This warranty extends only to Upek, and not to the customers of Upek, and notice of the purportedly defective Product must be given
during the Warranty Period. 
 11.2.2 Any Product that does not conform to the above warranty may be returned to ST, as provided in Section 112.3 below.
[***]* 
 11.2.3 As to all Products which Upek believes to have a defect (“Defective Device”), Upek may request ST in writing to provide a return
material authorization (“RMA”), and Upek may send a sample of the Defective Device with its request. ST shall perform a failure analysis within: 
  

	 	Ø	[***]* from the date of receipt of the samples [***]*; 

  

	 	Ø	[***]* from the date of receipt of the samples [***]*. 

 [***]*

 11.3 General Warranty Provisions applicable to the Wafers and Products: 
 11.3.1 ST makes no warranty or guarantee of any kind with respect to Contract of Sales for nonstandard or sub-grade Wafers or Products. Any of such Wafers or Products are sold “AS IS” “WITH ALL
FAULTS”. Additionally ST makes no warranty and shall have no liability with respect to a Product failure resulting form a design, specification, schematic or software provided by Upek to ST. 
 11.3.2 LIFE SUPPORT DEVICES: THE PRODUCTS ARE NOT AUTHORIZED FOR USE AS CRITICAL COMPONENTS OF LIFE SUPPORT DEVICES OR SYSTEMS. ST DISCLAIMS ANY WARRANTY OR
RESPONSIBILITY FOR SUCH USAGE, WHICH SHALL BE AT CUSTOMER SOLE RISK, EVEN IF ST HAS BEEN PREVIOUSLY NOTIFIED OF SUCH USAGE. AS USED HEREIN, “LIFE SUPPORT DEVICES OR SYSTEMS” ARE DEVICES OR SYSTEMS WHICH ARE INTENDED FOR IMPLANT INTO THE
BODY TO SUPPORT OR SUSTAIN LIFE, OR TO ASSIST THEREIN, AND WHOSE FAILURE TO PERFORM CAN BE REASONABLY EXPECTED TO RESULT IN SIGNIFICANT INJURY TO THE USER. A “CRITICAL COMPONENT” IS ANY COMPONENT OF A LIFE SUPPORT DEVICE OR SYSTEM WHOSE
FAILURE TO PERFORM CAN REASONABLY BE EXPECTED TO CAUSE OR RESULT IN THE FAILURE OF PERFORMANCE OF A LIFE SUPPORT DEVICE OR SYSTEM OR TO ADVERSELY AFFECT ITS SAFETY OR EFFECTIVENESS. 
 11.3.3 THE FOREGOING WARRANTY IS EXPRESSED IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED, STATUTORY AND IMPLIED, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE, AND OF ALL OTHER OBLIGATIONS OR LIABILITIES 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
		 	10	 	

 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 
ON ST’S PART (EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT), AND ST ASSUMES NOR AUTHORIZES ANY OTHER PERSON TO ASSUME FOR CUSTOMER ANY OTHER
LIABILITIES IN CONNECTION WITH THE SALE OF THE WAFERS OR PRODUCTS. ST SHALL IN NO EVENT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, LOSS OF USE OR COST OF LABOR
BY REASON OF THE FACT THAT THE WAFERS OR PRODUCTS SHALL HAVE BEEN DEFECTIVE, NON-CONFORMING OR OTHERWISE NOT IN CONFORMITY WITH SECTION 11. ST NEITHER ASSUMES NOR AUTHORIZES ANY OTHER PERSON TO ASSUME FOR ST ANY OTHER LIABILITIES IN CONNECTION WITH
THE SALE OF THE WAFERS OR PRODUCTS. 
 Section 12: Confidentiality 
 12.1 Each Party shall receive and hold the confidential and/or proprietary information (“Confidential Information”) of the other Party in confidence, exercising the same degree of care (and no less than
reasonable care) to maintain such confidentiality as each Party uses to protect its own confidential and/or proprietary information of like importance, provided that any such Confidential Information that initially is disclosed in writing or other
tangible form shall be conspicuously marked by the disclosing Party with a legend such as “Confidential” or “Proprietary,” and any such Confidential Information that initially is disclosed orally or in any other unwritten form
shall be identified by the disclosing Party as confidential at the time of initial disclosure, and thereafter shall be reduced by the disclosing Party to a writing similarly marked and delivered to the receiving Party within thirty (30) days of
initial disclosure. A Party receiving Confidential Information of the other Party shall use such Confidential Information only for the purpose of performance under this Agreement, and shall not disclose such Confidential Information to any other
entity or person (other than to the receiving Party’s employees having a genuine need to know such Confidential Information for the purposes contemplated by this Agreement) without the prior written consent of the Party disclosing such
Confidential Information (except that ST may disclose relevant portions of Upek’s Confidential Information, but only as necessary and in confidence pursuant to appropriate confidentiality agreements no less restrictive than this Agreement, to
ST’s mask vendor and ST’s design/assembly/test subcontractor(s) for the purpose of performance under this Agreement). Notwithstanding anything to the contrary herein, the Parties acknowledge and agree that the Design and Software are the
Confidential Information of Upek. 
 12.2 The obligation of one Party to receive and hold the Confidential Information of the other Party in confidence, as
described above, shall terminate [***]* from the date of disclosure of the Confidential Information hereunder, and shall survive any earlier termination of this Agreement; provided, however, that neither Party shall have any obligation to the other
Party with respect to any Confidential Information or any portion thereof which: 
  

	 	(a)	is now, or which hereafter becomes, through no wrongful act or omission on the part of the receiving Party, generally known or available; or, 

  

	 	(b)	is already known to the receiving Party at the time of receiving the same hereunder; or, 

  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
		 	11	 	

 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

	 	(c)	is furnished to a third party by the disclosing Party without restriction on disclosure; or, 

  

	 	(d)	is hereafter rightfully furnished to the receiving Party by a third party as a matter of right, without restriction on disclosure and without breach of this Agreement; or,

  

	 	(e)	is independently developed by the receiving Party without reference to or use of the Confidential Information of the disclosing Party hereunder; or, 

  

	 	(f)	is approved for release by written authorization of the disclosing Party. 

 12.3 Each Party appoints the person listed below as its Data Control Coordinator to receive the Confidential Information of the other Party. Each Party may change its Data Control Coordinator by giving the other Party written notice of the
name and address of its newly appointed representative: 
  

											
	For ST:	  		  	For Upek:	  	
						
	Name:	  	                                      
                           	  		  	Name:	  	                                      
                           	  	
	Title:	  	                                      
                           	  		  	Title:	  	                                      
                           	  	
	Phone:	  	                                      
                           	  		  	Phone:	  	                                      
                           	  	
	Fax:	  	                                      
                           	  		  	Fax:	  	                                      
                           	  	
	Email:	  	                                      
                           	  		  	Email:	  	                                      
                           	  	

 12.4 All Confidential Information delivered by the disclosing Party to the receiving Party pursuant to this
Agreement shall be and remain the property of the disclosing Party. All originals and copies of materials received by one Party from the other hereunder are to be returned immediately upon the disclosing Party’s written request, or destroyed at
the disclosing Party’s option. 
 12.5 Except to the extent otherwise expressly provided in this Section 12, the disclosure or furnishing of any
Confidential Information by either Party hereunder shall not be construed as a grant by either Party to the other Party, whether expressly, by implication, estoppels or otherwise, of any license under any invention, patent, trademark, copyright,
mask work right or other intellectual property right now or hereafter owned by either Party. 
 12.6 Neither Party shall publicly announce or disclose the
existence of this Agreement or its terms and conditions, or advertise or release any publicity regarding this Agreement, without the prior written consent of the other Party. This provision shall survive the expiration or termination of this
Agreement. 
 12.7 Except to the extent otherwise expressly provided in this Agreement, neither Party makes any warranty, express, statutory or implied,
regarding the sufficiency of any Confidential Information disclosed under this Agreement for any purpose, or regarding claims of patent, copyright, mask work or other infringement which may arise from the use of any such Confidential Information.

  

					
		 	12	 	

 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 12.8 Subject to the requirements set forth below, either Party may disclose the other Party’s Confidential
Information to the limited extent genuinely necessary: (a) to prosecute and/or defend any litigation between the parties arising out of this Agreement, and/or (b) to respond to a court order, governmental action, or as otherwise required
by law. However, any such disclosure under either (a) or (b) above may be made only if the original disclosing Party has been given prior written notice of the proposed disclosure by the receiving Party, and has been given an opportunity
to appear and object to such disclosure and/or to take such other protective measures as the original disclosing Party may deem appropriate. 
 12.9 Both
parties agree that Confidential Information as described herein disclosed by an “Affiliate” (as more broadly defined below for the purposes only of this Section 12) to a Party or by a Party to an Affiliate will be governed by this
Agreement, and that the receiving Party is permitted to disclose the disclosing Party’s Confidential Information to any of the receiving Party’s Affiliates who have a genuine need for such Confidential Information for the purpose set forth
in this Agreement (provide that each such Affiliate is bound by an appropriate confidentiality agreement no less restrictive than this Agreement). For the purposes of Section 12 of this Agreement, “Affiliate” shall mean an entity
controlling, controlled by, or under common control, now and hereafter with a Party. For purposes of this Definition “control” shall mean greater than 50% of the voting rights of such entity. 
 Section 13: Indemnification 
 13.1 ST will defend, indemnify and
hold harmless Upek, its officers and employees from and against claim(s) alleging that the Manufacturing Processes (or any modified Manufacturing Processes pursuant to Section 5.3) infringe any copyrights, patents, trade secrets, mask works or
other proprietary rights of any third parties arising under United States law or the law of any other country in which the Products are sold and will pay resulting costs, damages and reasonable attorney’s fees finally awarded, provided that:
(a) Upek promptly notifies ST, by written communication, of the claim, (b) Upek cooperates, in a reasonable manner and at ST costs with ST, in the defense; and (c) ST has sole control of the defense and all related settlement
negotiations. If such claim occurs, or in ST’s opinion is likely to occur, Upek agrees to permit ST, at its option and expense, and without limiting the above indemnification, either to procure for Upek the right to continue using the Wafers or
the Products or to replace or modify the same so as such Wafers and/or Products become non-infringing and provides the same capability and performance as before. 
 13.2 ST shall have no obligation under Section 13.1 for any claim, to the extent such claim results from: (a) the combination of a Product with other products if such infringement would not have arisen but for the combination;
(b) the specification(s), the Designs or Software provided by Upek to ST under this Agreement. Upek shall defend, indemnify and hold ST harmless and shall pay all costs, and reasonable attorneys’ fees and expenses relating to its defense
resulting from any suit, claim, demand, action arising from (a) or (b) above and pay all damages finally awarded, provided that (i) ST promptly notifies Upek, by written communication, of such event under (a) or (b) above;
(ii) ST cooperates, in a reasonable manner and at Upek’s costs with Upek, in the defense; and (iii) Upek has sole control of the defense and all related settlement negotiations. 
 13.3 Each Party total liability to the other under Section 13.1 is subject to Section 14 below. 
  

					
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 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 13.4 The foregoing states the entire liability of ST for infringement under this Agreement. THIS PROVISION IS STATED
IN LIEU OF ANY OTHER EXPRESSED, IMPLIED OR STATUTORY WARRANTY AGAINST INFRINGEMENT, AND SHALL BE THE SOLE AND EXCLUSIVE REMEDY FOR INFRINGEMENT OF ANY KIND. 
 Section 14: Liability 
 14.1 EXCEPT WITH RESPECT TO BREACHES OF A PARTY’S OBLIGATIONS UNDER SECTION [***]*, IN NO EVENT SHALL
EITHER PARTY BE LIABLE TO THE OTHER FOR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR FOR EXEMPLARY OR PUNITIVE DAMAGES, HOWEVER CAUSED, WHETHER FOR BREACH OF WARRANTY, CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, EVEN IF
SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
 14.2 EXCEPT WITH RESPECT TO BREACHES OF A PARTY’S OBLIGATIONS UNDER SECTION [***]*,
ST TOTAL LIABILITY TO UPEK FOR ANY KIND OF LOSS, DAMAGE OR LIABILITY ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT, UNDER ANY THEORY OF LIABILITY, SHALL NOT EXCEED [***]*. THE LIMITATIONS SPECIFIED IN THIS SECTION 14 SHALL SURVIVE
AND APPLY EVEN IF ANY LIMITED REMEDY SPECIFIED IN THIS AGREEMENT IS FOUND TO HAVE FAILED OF ITS ESSENTIAL PURPOSE. 
 Section 15: Term and
Termination 
 15.1 The term of this Agreement shall begin on the Effective Date, and unless previously terminated as herein after set forth, shall remain
in force for an initial period of three (3) years (the “Term”). The Agreement shall automatically renew thereafter on an annual basis unless either party notifies the other of its election not to renew, such notice to be provided in
writing six (6) months prior to the end of the initial three year term or any renewal term. 
 15.2 Each Party may, at its discretion, upon written
notice to the other party, and in addition to its rights and remedies provided under this Agreement and at law, terminate this Agreement or any individual Contract of Sale in the event of any of the following: 
  

	 	(a)	Upon a breach by the other Party of any material provision in this Agreement, and failure of such Party to cure such material default within sixty (60) days upon written notice
thereof. 

  

	 	(b)	A Party becomes the subject of any voluntary or involuntary proceeding under the applicable federal or state bankruptcy or insolvency laws and such proceeding is not terminated
within sixty (60) days of its commencement. 

 15.3 Upon the expiration or termination of this Agreement or any individual Contract of
Sale however arising the following shall apply: 
 [***]* 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 15.4 Upon termination of this Agreement, the terminating Party shall have the right to pursue all available remedies
at law or in equity that it may elect. 
 15.5 The provisions of Sections 1, [***]* and 16 shall survive any termination or expiration of this Agreement.

 Section 16: General Provisions 
 16.1
Assignment. This Agreement may not be assigned by either Party, nor any of such Party’s rights or obligations hereunder, to any third party including without limitation through a U.S. Bankruptcy Code Chapter 11 reorganization, without
prior written consent of the other Party. For the purposes of this Agreement the following shall be deemed an assignment: (1) any dissolution, merger, consolidation, or other reorganization of or affecting the Party, whether or not such Party
is the surviving entity, and (2) the sale or transfer, whether is one or a series of transactions, of stock possessing more than fifty percent of the total combined voting power of all classes of the party’s capital stock issued,
outstanding and entitled to vote for the election of the directors and (3) a sale of all or substantially all of the assets of a Party. Notwithstanding the foregoing, restriction on assignment, and except with respect to the possibility to
increase the commitment set forth in Section 4.2 above to a maximum of 50%, each Party will have the right to assign this Agreement to a successor or affiliate in connection with a reorganization, merger or similar transaction, provided that
the successor or affiliate agrees to assume and fulfill all of such Party’s ongoing and future obligations under this Agreement. In the event that this Agreement is assigned effectively to a third party, this Agreement shall bind upon
successors and assigns of the Parties hereto. Provided, however, that ST has the right to assign this Agreement to any of its Affiliates upon prior notice to Upek. 
 16.2 Force majeure. Except for the payment of purchase prices, fees and/or royalties, neither Party shall be liable to the other Party for failure of or delay in performance of any obligation under this Agreement, directly or
indirectly, owing to acts of God, war, war-like condition, embargoes, riots, strike and other events beyond its reasonable control. In the event that such failure or delay occurs, the affected Party shall notify the other Party of the occurrence
thereof as soon as possible and the Parties shall discuss the best way to resolve the event of force majeure. 
 16.3 Legal Notices. All legal notices
provided for in connection with this Agreement shall be given in writing and shall be effective (i) upon receipt, when served by personal delivery; or (ii) on the third day following the date of transmittal when transmitted by express mail
(e.g., Federal-Express, UPS); or (iv) on the 7th day following the date of mailing when sent by registered airmail of the sender’s country with postage prepaid, addressed to the Party as follows, or to a changed address as the Party shall
have specified by prior written notice: 
  

	*	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

					
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	ST:	  	ST Microelectronics, Inc.
		  	1310 Electronics Drive
		  	Carrollton, TX 75006 U.S.A.
		  	Attention: General Counsel; and
		
	Upek:        	  	Upek, Inc. 2001 Center Street,
		  	Suite 500, Berkeley, California 94704.
		  	Attention: Chief Executive Officer

 16.4 Waiver. The waiver by either Party of the remedy for the other Party’s breach of or its right
under this Agreement will not constitute a waiver of the remedy for any other similar or subsequent breach or right. 
 16.5 Severability. If any
provision of this Agreement is or becomes, at any time or for any reason, unenforceable or invalid, no other provision of this Agreement shall be affected thereby, and the remaining provisions of this Agreement shall continue with the same force and
effect as if such unenforceable or invalid provisions had not been inserted in this Agreement. 
 16.6 Press Release. Neither Party shall make any
announcement or press release regarding this Agreement or any terms thereof without the other Party’s prior written consent. 
 16.7 Amendment.
No changes, modifications or alterations to this Agreement shall be valid unless reduced to writing and duly signed by the respective authorized representative of each Party. 
 16.8 Governing Law and Venue. This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of Delaware without respect to its conflict of law provisions. The Parties
shall attempt to resolve any dispute arising in connection with this Agreement amicably by mutual agreement. Any such dispute which is not resolved by agreement within a period of sixty (60) days after the date of delivery of a notice
describing the dispute referred to as “Notice of Claim” shall be finally settled by an arbitral tribunal consisting of three arbitrators appointed by the Court of Arbitration of the International Chamber of Commerce (ICC). The arbitration
tribunal , including all staff, all witnesses, and attending non-Parties, shall be legally bound by agreements and/or orders to prevent disclosure of any information which may be disclosed to them in connection with arbitration proceedings conducted
hereunder. The arbitration shall take place in the city of Delaware, United States of America in the English language and according to the Rules of conciliation and arbitration of the ICC. The arbitrators shall apply the State of Delaware law to the
merits of the dispute and in all cases shall decide in accordance with the terms of this Agreement. The arbitral decision and award shall be final and binding and shall deal with the questions of costs of arbitration an all matters related thereto.
For the avoidance of doubt, nothing in this Section 16.8 shall prevent either party seeking interim injunctive relief from a court of appropriate jurisdiction and the seeking of such relief will not operate as a waiver of arbitrability.

 16.9 No Partnership. In giving effect to this Agreement, no Party shall be or be deemed to be an agent or employee of another Party for any
purpose, and that their relationship to each other shall be that of independent contractors. Nothing in this Agreement shall constitute a partnership or a joint venture between the Parties. No Party shall have the right to enter into contracts or
pledge the credit of or incur expenses or liability on behalf of the other Party. 
  

					
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 16.10 Entire Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes all
prior proposal(s) and discussions relative to the subject matter of this Agreement, and neither of the Parties shall be bound by any conditions, definitions, warranties, understandings or representations with respect to the subject matter other than
as expressly provided herein. The terms and conditions contained herein and the mutually agreed upon appendices attached hereto constitute the entire agreement between the Parties and shall supersede all previous communications either oral or
written between the Parties with respect to the subject matter hereof. No oral explanation or oral information by either Party hereto shall alter the meaning or interpretation of this Agreement. 
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 IN WITNESS WHEREOF, the authorized representative of the Parties hereto have executed this Agreement as of the
Effective Date. 
  

							
	STMicroelectronics N.V.	    	Upek Systems Inc.
				
	By:	 	 /s/ Aldo Romano
	    	By:	 	 /s/ Alan Kramer

		 	(Signature)	    		 	(Signature)
		
	Print Name: Aldo Romano	    	Print Name: Alan Kramer
				
	Title:	 	Corporate VP – TPA Group	    	Title:	 	Chief Executive Officer
		
	Date: March 4, 2004	    	Date: March 4, 2004

  

					
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 Appendix 1 
 Process Change Policy 
 [***]* 
  

	*	Indicates that the appendix has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
appendix. 

 FOIA CONFIDENTIAL TREATMENT REQUESTED BY UPEK, INC. 
  

 Appendix 2 
 Manufacturing Steps 
 [***]* 
  

	*	Indicates that the appendix has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
appendix.

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