Document:

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                                                                   Exhibit 10.15

*CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC
 INFORMATION HAS BEEN FILED SEPARATELY WITH THE SEC. CONFIDENTIAL TREATMENT
 HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                       MEMORY COMPILER LICENSING AGREEMENT

        This agreement ("Agreement") is entered into and effective as of
______________ ("Effective Date") by and between Virage Logic Corporation
("Virage Logic"), a company duly incorporated under the laws of California, USA,
having its principal place of business at 46501 Landing Parkway, Fremont, CA
94538 USA, and United Microelectronics Corporation, an ROC corporation having
its principal place of business at 13 Innovation Road I, Science Based
Industrial Park, Hsin-Chu City, Taiwan, on behalf of and for the benefit of
itself, UMC Group (USA), UMC Group (Europe) BV and the UMC Group Fabs
(collectively "UMC"). For purposes of this Agreement, the UMC Group fabs are (i)
Nippon Foundry Inc., and (ii) any integrated circuit fabrication facilities
("Fabs") as to which United Microelectronics Corporation owns or controls,
directly or indirectly, in excess of 30% of the voting shares, but only during
such times as such ownership or control exists.

                                   BACKGROUND

        Virage Logic has the expertise in developing capability in designing
sub-micron memory bit cells, memory compilers, and other silicon intellectual
property; and

        UMC desires to have Virage Logic license to mutual customers an existing
and/or future development of sub-micron memory bit cells and memory compilers
based on UMC's 0.18um and 0.15um technologies;

        Now, therefore, the parties hereto agree as follows:

I.      DEFINITIONS

1.1     "Net Sales Revenue" shall mean net sales revenues on sales of
        Royalty-Bearing Products by UMC as determined in accordance with UMC
        Group normal and customary business records under Taiwan Generally
        Accepted Accounting Practices.

1.2     "Royalty-Bearing Products" shall mean production wafers manufactured by
        UMC and sold to UMC Customers that contain die that include Licensed
        Libraries. Royalty-Bearing Products shall not include test chips,
        samples and other similar products.

1.3     "Licensed Products" shall mean the Memory Compiler which consists of:
        (i) object code versions of a set of executable software programs, (ii)
        libraries containing design elements of memory cell arrays and control
        logic, and (iii) all related documentation, used for generating memory
        configurations as supplied to UMC by Virage Logic.

1.4     "Licensed Libraries" shall mean the libraries set forth in Exhibit A
        which contain the Licensed Products and UMC Cells and shall be licensed
        by Virage Logic to UMC's customers only.

1.5     "The UMC/Virage Logic Library Program" shall mean the design,
        maintenance, sales, distribution and support by Virage Logic of certain
        Memory Compilers.

1.6     "UMC Cells" shall mean certain library cells that are provided by UMC as
        listed in Exhibit D.

II.     DEVELOPMENT AND DELIVERY OF THE LIBRARY

2.1     Development. Virage Logic agrees to use good faith and reasonable
        efforts to develop for UMC the Licensed Libraries according to
        specifications as provided in Exhibit B ("Specifications") of this
        document. Virage Logic agrees to use good faith and reasonable efforts
        to provide to UMC the set of deliverables outlined in Exhibit A and
        Exhibit B Specifications ("Deliverables"). The

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        scope of this Agreement shall include 0.18um and 0.15um technologies,
        which may be extended to other technologies, by mutual agreement in
        writing.

2.2     Schedule. Virage Logic agrees to use good faith and reasonable efforts
        to provide the set of Deliverables according to the schedule and
        milestones as provided in the Exhibit C ("Schedule"). For every
        milestone set forth Exhibit C, Virage Logic commits to allocate
        resources to meet the Schedule.

2.3     UMC Deliverables. UMC agrees to use good faith and reasonable efforts to
        provide early access to the technical information, including Design
        Rules and SPICE models to Virage Logic for the purpose of developing the
        Licensed Libraries. UMC will also provide when available, the DRC
        command file for the given process, if appropriate, to Virage Logic for
        verification of the design rule interpretation. Virage Logic understands
        that there may be potential changes to the information provided, and UMC
        agrees to use good faith and reasonable efforts to keep Virage Logic
        continuously updated on the most current version of information. Any
        changes to the information provided to Virage Logic by UMC may result in
        changes to the Schedule set forth in Exhibit C. Exhibit C shall be
        updated as necessary to reflect these changes to the schedule with no
        penalty imposed upon Virage Logic.

2.4     Licensed Libraries. The Licensed Libraries will be an integration of
        (but not limited to) UMC specific memory compilers using the single-port
        UMC-supplied bit cells (only after Virage Logic has reviewed the UMC bit
        cell and finds it technically superior to the Virage Logic bit cells
        from an electrical, layout and manufacturability standpoint), and UMC
        specific memory compilers for dual-port and ROM compilers, which contain
        bit cells developed by Virage Logic. Licensed Libraries shall also pass
        UMC's design rule check (DRC) procedure. UMC shall consider Virage
        Logic's suggestions with respect to design rule modifications and
        interpretations.

2.5     Quality Assurance. Virage Logic shall use the quality assurance ("QA")
        procedure set forth in Exhibit I to instantiate compiled memory on test
        wafers produced by UMC, to ascertain that Virage Logic's deliverables
        meet the Specification prior to the availability of the Licensed
        Libraries. Virage Logic shall provide a tapeout of the test chip to UMC
        and will verify the test chip. Virage Logic agrees to perform the QA
        procedure on the library deliverables and promptly provide the results
        to UMC for its review. UMC will review the library deliverables, then
        provide authorization for customer release. In the event the
        deliverables provided by Virage Logic are not acceptable, the parties
        will use the process set forth in Exhibit I to resolve any issues. After
        customer release by UMC, both parties agree to make the QA procedure and
        results thereof available to either party's potential customers promptly
        upon request.

2.6     Silicon Characterization. Parties shall mutually agree on a Silicon
        Characterization program for the memory instances and compilers
        generated by Virage Logic for UMC's customers. The intent of such a
        program is to prove the viability of Virage Logic's products on the
        0.18um and 0.15um UMC processes and provide a vehicle to supply such
        Silicon information to UMC's and Virage Logic's joint customers for the
        purpose of ensuring Virage Logic's product functionality and for
        required data to assist in the chip design.

2.7     Schedule Changes. The Schedule set forth in Exhibit C shall be revised
        to reflect any delays resulting from changes to the specification
        implemented by either party and agreed to by both parties.

2.8     Test Chips. UMC agrees to allow Virage Logic to use UMC's silicon
        shuttle program for the manufacture of 50 test chips per run, up to two
        such shuttle runs at no charge to Virage Logic. Any additional test
        chips or additional runs required shall be at an additional charge.
        Virage Logic agrees to promptly provide UMC with a test characterization
        report based on such test chips.

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III.    MODIFICATION AND REVISION

3.1     UMC Changes. In the event that UMC makes changes, including but not
        limited to design rules and/or process parameters which UMC at its
        discretion deem significant, Virage Logic shall, at its sole discretion,
        revise the Library at its own expense and at no charge to UMC. The
        adjusted Virage Logic deliverables will be provided to UMC's customers
        after QA verification, upon a mutually agreed upon schedule.

3.2     Customer Driven Changes. In the event of design tool revisions and
        changes which are deemed significant by customer demand and/or technical
        review, Virage Logic shall use reasonable efforts to revise the design
        kits in the library at its own expense. The adjusted Virage Logic
        deliverables will be provided to UMC's customers after QA verification,
        upon a schedule mutually agreed upon by UMC and Virage Logic.

3.3     UMC Cells. Virage Logic shall have no right to modify, alter or improve
        any cell in UMC Cells and UMC shall remain the sole owner to all rights
        to such UMC Cells. UMC grants Virage Logic the non-exclusive,
        non-transferable, worldwide, royalty-free right and license to
        reproduce, and distribute UMC Cells, under the terms set form in Section
        5.1, for the arm of this agreement, solely for the purpose of evaluation
        and for the design, place-and-route and tape-out of integrated circuits
        to be manufactured at UMC owned or controlled manufacturing facilities.
        Such distribution of UMC Cells by Virage Logic shall be consistent with
        the manner in which Virage Logic distributes the Licensed Libraries
        under UMC/Virage Logic Library Program. UMC will use good faith and
        reasonable efforts to correct any bug as necessary to have Virage Logic
        meet its Support Agreement(s). If such any bug cannot be corrected using
        such efforts, UMC may terminate this Agreement.

IV.     OWNERSHIP AND LICENSE

4.1     Virage. As between the parties, Virage Logic exclusively shall have all
        property rights, including but not limited to, patent rights,
        copyrights, trade secret rights, mask work rights and other rights,
        throughout the world in any inventions, intellectual property,
        trademarks, works-of-authorship, mask works, ideas or information made
        or conceived or reduced to practice by Virage Logic or by Virage Logic
        jointly with mid parties in the course of development of memory bit
        cells, memory compilers, or other Deliverables under this Agreement.

4.2     UMC. As between the parties, UMC exclusively shall have all right, title
        and interest including all patent rights, copyrights, trade secret
        rights, mask work rights and other rights throughout the world
        (collectively "Intellectual Property Rights") in any inventions,
        works-of-authorship, processes, mask works, ideas or information made or
        conceived or reduced to practice by UMC or by UMC jointly with third
        parties in the course of development of those specifically identified
        library cells as listed in Exhibit D, including but not limited to the
        UMC single port memory bit cells under this Agreement. Exhibit D shall
        be modified from time to time upon mutual agreement between the Parties.

4.3     Joint Development. The parties shall jointly own any inventions,
        intellectual property, trademarks, works-of-authorship, mask works,
        ideas or information made or conceived or reduced to practice by Virage
        Logic jointly with UMC during the course of this Agreement. Each party
        shall have the right to use, exploit, and license such joint inventions
        for any purpose without a duty to account to, or obtain the consent of,
        the other party, and the parties shall cooperate with respect to the
        prosecution, protection, and enforcement of the joint inventions.

V.      CONSIDERATION

5.1     Royalties.

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        5.1.1       UMC shall pay to Virage Logic a royalty on Net Sales Revenue
                    of Royalty Bearing Products as follows (as reduced by
                    Section 5.1.2 below) :

<TABLE>
<CAPTION>
                           --------------------- ----------------------
                             Total Cumulative    Maximum Royalty Rate
                             Royalty Paid to
                               Virage Logic
                           --------------------- ----------------------
                           <S>                   <C>
                                    ***                   **%
                           --------------------- ----------------------
                                    ***                   **%
                           --------------------- ----------------------
                                    ***                   **%
                           --------------------- ----------------------
</TABLE>

        5.1.2       Allocation.

               5.1.2.1   By Library Class. Except as set forth herein, **** of
                         the above Maximum Royalty Rate shall be due for each
                         library class integrated into Royalty-Bearing Products
                         that utilize a Licensed Library. The library classes
                         are standard cells (SCL), input/output cells (I/O) and
                         memory.(1)

               5.1.2.2   Within a Library Class. In the event a Royalty-Bearing
                         Product contains both a Licensed Library and library
                         components licensed from a third party for which MAC is
                         contractually obligated to pay royalties in the same
                         library class, the royalty due for Licensed Libraries
                         under the affected library class(es) shall be reduced
                         to **** the applicable Maximum Royalty Rate.(2)

5.2     Royalty Obligation. UMC shall be obligated to pay royalties as stated
        herein to Virage Logic for any UMC customer design that is: (a) properly
        designated at time of production release to UMC by UMC's customer as
        containing Licensed Libraries that have been so licensed under UMC's
        Library Program, and (b) where such designs are manufactured by UMC. In
        the event that a customer designates to UMC that multiple library
        vendors contributed to the design, the royalties payable under this
        Agreement shall be in accordance with Section 5.1.2.

5.3     Identification of Licensed Libraries. UMC agrees to use its standard
        procedures for identifying designs that contain Licensed Libraries,
        including without limitation, requiring customers to identify all third
        party IP included in customer designs manufactured at UMC fabs. In order
        to facilitate this effort, Virage Logic agrees to participate in UMC's
        IP watermarking program. Under this program UMC will read tapeouts to
        identify watermarked IP contained on such tapeout and provide Virage
        Logic with a report of all customer designs that include Virage Logic
        IP. Notwithstanding the above, if any of UMC's customers notifies UMC of
        errors or omissions discovered, UMC shall pay Virage Logic the owed
        applicable royalties as stated under the terms of this Agreement or
        Virage Logic shall refund any overpayment of royalties, as applicable.

5.4     Royalty Reports. In order to facilitate payment of royalties pursuant to
        this Agreement, UMC will report to Virage Logic in writing the total Net
        Sales Revenues on Royalty-Bearing Products within thirty days of the end
        of each quarter in which royalties have accrued, and, for those quarters
        in which royalties have accrued, will pay the applicable royalties to
        Virage Logic within forty-five (45) days of receipt of an applicable
        invoice from Virage Logic.

--------

(1) By way of example, if Licensed Libraries are integrated into a
    Royalty-Bearing Product while the total applicable Royalty Rate is **%, only
    ** percent royalty shall be due on such products (**% for memory libraries).

(2) By way of example, if memory libraries are integrated into a Royalty-Bearing
    Product while the total applicable Royalty Rate is **%, but a third party
    memory library is also integrated into such Royalty-Bearing Product, only
    **% royalty shall be due to Virage on such products.

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5.5     Taxes. The royalties set forth in this Article 5 include all applicable
        taxes, if any. If any taxes (including without limitation, sales taxes,
        value added taxes or withholding taxes) are imposed on the payment of
        NREs, royalties or other fees by UMC to Virage Logic hereunder, UMC may
        either deduct such taxes from payments made to Virage Logic, have Virage
        Logic directly pay such taxes, or have Virage Logic reimburse UMC for
        taxes paid by UMC The parties agree to commercially reasonable efforts
        to cooperate to reduce the tax burden on each party.

5.6     Third Party Licenses. The royalties set forth in this Article 5 include
        all third party licenses necessary for UMC and UMC customers to enjoy
        the rights granted hereunder. Virage Logic win be solely responsible for
        any third party fees and royalties due.

VI.     DISTRIBUTION OF THE LIBRARY

6.1     Distribution of Licensed Libraries. During the terms of this Agreement,
        upon acceptance of the Licensed Libraries by UMC pursuant to Section 2.5
        above, Virage Logic shall have non-exclusive and non-transferable rights
        to reproduce and distribute, free of charge, the Licensed Libraries to
        third party entities ("Licensed Library Recipients") without any payment
        of royalties or other fees to UMC. Virage Logic agrees that UMC bit
        cells may only be shipped with memory compilers developed specifically
        for the UMC bit cell and shall not be distributed by themselves.

6.2     End-User Agreements. Virage Logic agrees to sign "License Agreements"
        with the Licensed Library Recipients for their use of the Licensed
        Libraries. Virage Logic understands and agrees to inform Licensed
        Library Recipients that the relationship between UMC and the Licensed
        Library Recipients will be purely for foundry services provided by UMC
        and the Licensed Library Recipients must enter into a separate agreement
        with UMC to obtain foundry services from UMC.

6.3     Restrictions. Virage Logic shall have no right to use, and hereby agrees
        that it will not use, any information provided by UMC hereunder to
        assist third parties in migrating from UMC processes to non-UMC
        processes. Virage Logic further agrees that it will not provide any UMC
        information to third parties unless such party has entered into a
        non-disclosure agreement with UMC specifically authorizing such
        disclosure.

6.4     Master License Agreement. Virage Logic's standard Master License
        Agreement is attached as Exhibit H for information only and shall serve
        as a basis for the License Agreements Virage Logic will enter into with
        customers under the UMC/Virage Logic Library Program. Virage Logic shall
        have the right to make changes from time to time to the License
        Agreements so long as any such changes do not: (1) violate the terms of
        this Agreement, (2) materially alter the basic license restriction that
        the Licensed Library Recipients may use the Licensed Libraries only for
        evaluation and for the design, place-and-route and tape-out of
        integrated circuits to be manufactured solely at UMC or its designated
        manufacturing facilities, or (3) alter the terms set forth in delete
        Virage Logic's indemnification and limitation of liability sections of
        the Master License Agreement. Virage Logic agrees that it will offer its
        standard Master License Agreement with its standard pricing (or more
        favorable pricing) to all UMC Customers.

6.5     Changes to MLA. The parties agree that Virage Logic may make changes to
        the Master License Agreement on a case-by-case basis for particular
        Licensed Library Recipients that are not permitted under Section 6.4;
        provided that, UMC's consent has been obtained in writing (email with
        appropriate acknowledgment and facsimile will be acceptable forms of
        writing for such consents). Provided that Virage Logic may change those
        sections described in Section 6.4(3) as negotiated with a customer as
        long as the sections described in Section 6.4(3) are initially offered
        to such customer as set forth in the attached Master License Agreement.

6.6     Customer Support. Virage Logic shall be responsible for providing
        Licensed Library Recipients support for the Licensed Libraries
        distributed by Virage Logic. Virage Logic shall be free to set all terms
        and conditions for support, maintenance, engineering and customization
        services

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        provided by Virage Logic to any Licensed Library Recipients; provided
        that UMC customers in the aggregate will be provided the same level of
        support at the same percentage of list price for support as customers of
        other foundries unless UMC customers require abnormal amounts of
        support.

6.7     Distribution by UMC. UMC shall have the right to use and distribute the
        Licensed Libraries for UMC or its designated subcontractors' internal
        designs, including ASICs; provided that, UMC shall execute a Virage
        Logic License Agreement as described in Exhibit H of this Agreement. If
        required, support for UMC's internal ASIC use of the Licensed Libraries
        can be purchased at Virage Logic's standard fees.

6.8     Licenses Requested by UMC. Upon written request by UMC, Virage Logic
        will, on reasonable terms and conditions, license and distribute the
        Licensed Libraries to (a) other third party design service providers
        creating designs that will be manufactured solely at UMC or UMC
        designated facilities; (b) distribute as necessary to library
        developers; or (c), distribute to fulfill UMC's current contractual
        obligations and to facilitate future contractual obligations. The terms
        of these aforementioned licenses will be mutually agreeable to UMC.
        Virage Logic, and the third party on a case by case basis. Virage Logic
        may decline to license the following competitors of Virage Logic:
        Avant!, Dolphin, Virtual Silicon Technology, Duet, Silicon Access, and
        Leda. Virage Logic may unilaterally modify the above list of competitors
        at any time (upon written notice to UMC to include any additional
        competitors that sell, transfer, and/or license compilers and instances
        (designs of discrete integrated circuit memory cell arrays and
        corresponding control logic) that compete with Virage Logic products and
        Virage Logic shall, if requested by UMC, remove from the list any
        entities that no longer compete with Virage Logic.

6.9     Promotion of Licensed Libraries. Both Virage Logic and UMC shall promote
        the Licensed Libraries to customers of both parties ("Customers") using
        Virage Logic as the distributor. All licensees of Licensed Libraries
        will be granted a license for unlimited and/or limited use of the
        Licensed Libraries and Deliverables solely for tapeout to UMC.

6.10    Reports. Virage Logic shall provide UMC a monthly update of all Licensed
        Library Recipients who receive front-end Views and/or Back-End Views.
        Virage Logic shall not directly or knowingly indirectly make available
        the Licensed Libraries to any company on the list provided in Exhibit E
        without first obtaining UMC's consent in writing (email and facsimile
        will be acceptable forms of writing for such consents).

6.11    Quarterly Meetings. Both parties will jointly hold quarterly meetings to
        review performance as a participant in the UMC/Virage Logic Library
        Program beginning from the Effective Date. The parties will assign
        liaison representatives at both corporate and regional levels. The
        liaison representatives are as follows:

<TABLE>
<CAPTION>
     <S>                           <C>
        UMC                         VIRAGE LOGIC
        Name:                       Name: Rusty Ingram or designee
        Title:                      Title: Director, Business Development
        Phone #:                    Phone #: (510) 360-8035
        E-mail address:             E-mail address: rusty@viragelogic.com
</TABLE>

VII.    TERM AND TERMINATION

7.1     Term. This agreement shall have an initial term of five (5) years from
        the Effective Date, and shall automatically be renewed for successive
        one (1) year terms, unless either party give the other party notice of
        its intent to terminate the Agreement at least ninety (90) days prior to
        the end of the then current term.

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7.2     Termination. This Agreement may be terminated early by either party if
        the other party (1) breaches any material provision of this Agreement
        and does not cure or remedy such breach within thirty (30) days after
        receipt of the written notice of breach from the other party; or (2)
        becomes the subject of a voluntary or involuntary petition in bankruptcy
        or any proceeding relating to insolvency, receivership, liquidation, or
        composition for the benefit of creditors if such petition or proceeding
        is not dismissed with prejudice within sixty (60) days after filing.
        Termination of this Agreement shall be effective thirty (30) days after
        issuance of a written notice of termination to the other party by the
        non-defaulting party.

7.3     Effect of Termination. Termination of this Agreement for any reason
        shall not affect the obligations accruing prior to the effective date of
        termination, including but not limited to payment of all royalties due
        Virage Logic based on sales of the Compiler prior to termination. The
        rights and obligations under Sections 4, 5, 7.6 (if a Release Condition
        has occurred), 8, 9, 10, 11, and 12, shall survive the termination or
        expiration of this Agreement.

7.4     Return of Confidential Information. Upon the effective date of
        termination, each receiving party shall cease to use and shall either
        destroy or return to the disclosing party all of the disclosing party's
        Confidential Information in possession or under the receiving party's
        control during the term of this Agreement. Any related documentation and
        copies thereof, in whole or in part, in all forms of media, together
        with the receiving party's written certification by a duly authorized
        officer that the receiving party's Confidential Information, and all
        related documentation and all copies thereof, in whole or in part, are
        no longer in use and have been returned to the disclosing party or
        destroyed; provided that UMC may retain Virage Logic Confidential
        Information in the event it receives source code under Section 7.6, and
        such Confidential Information is necessary or useful for exercising
        UMC's rights grants under Section 7.6 below.

7.5     No Waiver. Termination of this Agreement under this Section shall be in
        addition to, and not a waiver of, any remedy at law or in equity
        available to either party arising from the other party's breach of this
        Agreement.

7.6     Source Code Escrow. Virage Logic agrees to put into escrow a copy of the
        Licensed Libraries, excluding the GUI software, in human readable format
        ("Source Code"), in detail that is in accordance with the industry
        standard for such Source Code. Prior to Virage Logic putting the Source
        Code into escrow, the parties shall execute a source code escrow
        agreement that contains the provisions below:

        7.6.1       Escrow Account. Within sixty (60) days of the signing of a
                    source code escrow agreement between UMC Virage Logic and
                    Data Securities International ("Escrow Agent"), Virage Logic
                    agrees to place in an escrow account in California, a copy
                    of the Source Code. The escrow agreement shall contain, at a
                    minimum, the terms and conditions Set forth in this Section
                    7.6.1 and Section 7.6.2 below. UMC shall bear all fees,
                    expenses and other charges incurred to open and maintain
                    such escrow account. Virage Logic shall update the escrow
                    account as necessary to maintain the most recent copy of
                    Licensed Libraries in the escrow account.

        7.6.2       Release. UMC shall notify Virage Logic and Escrow Agent by
                    certified mail in the event: (i) Virage Logic or its
                    successors is unable or unwilling to provide support, and
                    (ii) UMC reasonably anticipates that the release of the
                    Source Code will be required for UMC to properly support a
                    current existing customer of both UMC and Virage Logic
                    because of a change in Spice Models, Design Rules, UMC
                    Single-Port Memory Bit Cell, Sizing Equation, and/or Layer
                    Mapping for a specific process identified in Exhibit C to
                    this Agreement (the "Release Conditions"). Unless within
                    fifteen (15) days thereafter Virage Logic files with the
                    Escrow Agent its affidavit executed by a responsible
                    executive officer clearly refuting the occurrence of Release
                    Conditions, the Escrow Agent shall upon the sixteenth (16th)
                    day release the Source Code to UMC. In the event Virage
                    Logic files such an affidavit, the parties agree to enter
                    into binding mediation to resolve

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                    the dispute. The mediation shall be completed within thirty
                    (30) days of either party's notification requesting a
                    mediation. The mediator shall require pre-hearing exchange
                    of documentary evidence to be relied upon by each of the
                    respective parties in their respective cases in chief and
                    pre-hearing exchange of briefs. The mediator will make her
                    decision in writing; and her decision will be binding upon
                    the Parties. In the event the mediator decides in favor of
                    UMC, the parties shall send a joint notification to the
                    Escrow Agent to immediately release the Source Code to UMC.

        7.6.3       License. Upon the release of the Source Code hereunder, UMC
                    shall have a license to modify, have modified and use the
                    Source Code only in the event that the need for such use
                    and/or modification is necessary to support current existing
                    customer(s) of both Virage and UMC for the processes
                    identified in Exhibit C. UMC's license to use and/or modify
                    Source Code released hereunder is strictly limited to only
                    the Source Code associated with the process(es) for which
                    support is required or anticipated to be required. UMC shall
                    own all right title and interest in any modifications to the
                    Source Code created by or for UMC; subject to Virage Logic's
                    rights in the underlying Source Code. UMC agrees to grant
                    Virage Logic a perpetual, royalty-free, worldwide,
                    non-exclusive, fully-paid license to use such UMC
                    modifications to create modified versions of the Source Code
                    and to reproduce and distribute such modified versions of
                    the Source Code in object code form.

VIII.   WARRANTY

8.1     Limited Warranty. Virage Logic warrants for a period of twelve (12)
        months from delivery of the Licensed Libraries to UMC that such Licensed
        Libraries, as delivered, will be free from defects in the media and will
        substantially conform to the Specifications. In the event of
        nonconformance of the Licensed Libraries, UMC shall promptly notify
        Virage Logic and provide Virage Logic with all available information in
        written or electronic form so that Virage Logic can reproduce the Error.
        Virage Logic's sole obligation is to undertake good faith and reasonable
        efforts to correct the Errors reported to Virage Logic in writing or in
        electronic form during the warranty period. VIRAGE LOGIC'S SOLE
        LIABILITY AND UMC's EXCLUSIVE REMEDY WITH RESPECT TO BREACH OF THE
        FOREGOING LIMITED WARRANTY WILL BE LIMITED TO, AT VIRAGE LOGIC'S OPTION,
        ERROR CORRECTION OR PRODUCT REPLACEMENT, OR IF NEITHER IS IN VIRAGE
        LOGIC'S OPINION REASONABLY FEASIBLE, TERMINATION OF THE AGREEMENT'S
        COVERAGE OF THE PRODUCT THAT BREACHES THE FOREGOING LIMITED WARRANTY.

8.2     Disclaimer of Warranty. EXCEPT FOR THE ABOVE EXPRESS LIMITED WARRANTY
        AND THE WARRANTIES SET FORTH IN ARTICLE X BELOW, THE LICENSED LIBRARIES,
        KNOW-HOW, AND DOCUMENTATION ARE LICENSED "AS IS," AND VIRAGE LOGIC MAKES
        NO OTHER WARRANTIES EXPRESS, IMPLIED, STATUTORY OR OTHERWISE REGARDING
        THE LICENSED PRODUCT, DESIGN TECHNIQUES OR DOCUMENTATION. VIRAGE LOGIC
        SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND
        FITNESS FOR A PARTICULAR PURPOSE, OR RISING FROM A COURSE OF DEALING OR
        USAGE OF TRADE.

IX.     LIMITATION OF LIABILITY

9.1     Direct Damages. VIRAGE LOGIC'S TOTAL LIABILITY FOR DIRECT DAMAGES UNDER
        THIS AGREEMENT SHALL NOT EXCEED $100,000. UMC's TOTAL LIABILITY FOR
        DIRECT DAMAGES UNDER THIS AGREEMENT SHALL NOT EXCEED $100,000; PROVIDED
        THAT EACH PARTY'S LIABILITY FOR CLAIMS ARISING OUT OF ARTICLE XI BELOW
        SHALL BE AS FOLLOWS: (I) FOR CLAIMS COVERED BY SECTIONS 11.2(i),
        11.2(ii), 11.7(i) or 11.7(ii) EACH PARTY'S TOTAL LIABILITY SHALL NOT BE
        LIMITED; and (II) FOR CLAIMS COVERED BY SECTIONS 11.2(iii) or 11.7(iii),
        EACH PARTY'S LIABILITY SHALL BE LIMITED TO THE AMOUNTS PAID BY UMC TO
        VIRAGE

                                       8
<PAGE>   9

        PURSUANT TO THIS AGREEMENT AT THE TIME THE CLAIM IS SETTLED OR DAMAGES
        ARE AWARDED.

9.2     Consequential Damages. EXCEPT FOR DAMAGES ARISING OUT OF A BREACH OF
        ARTICLE X BELOW OR FOR DAMAGES CLAIMED BY A THIRD PARTY THAT ARE COVERED
        BY ARTICLE XI BELOW, UNDER NO CIRCUMSTANCES, SHALL EITHER PARTY BE
        LIABLE FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING IN
        ANY WAY OUT OF THIS AGREEMENT OR THE USE OF THE LICENSED PRODUCT, DESIGN
        TECHNIQUES AND DOCUMENTATION, HOWEVER CAUSED, (WHETHER ARISING UNDER A
        THEORY OF CONTRACT, TORT (INCLUDING NEGLIGENCE); OR OTHERWISE),
        INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOST PROFITS, LOSS OF DATA,
        OR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES. THE LIMITATIONS
        ON EITHER PARTY'S LIABILITY SET FORTH IN THIS SECTION IX SHALL APPLY
        NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY OF THE LIMITED
        REMEDIES SET FORTH IN SECTIONS 8.1 AND 9.1 ABOVE.

X.      PROPRIETARY INFORMATION

10.1    NDA. The parties have entered into a Non-disclosure agreement (NDA)
        attached hereto as Exhibit G and the terms of such NDA shall be
        incorporated into this Agreement by reference.

10.2    Proprietary Information. All Proprietary Information and any copies
        thereof remain the property of the disclosing party and no license or
        other rights is granted or implied hereby. The receiving party shall,
        upon the disclosing party's request, return the original and all copies
        of tangible Proprietary Information.

10.3    Survival. This Section shall survive the termination or expiration of
        this Agreement for a period of five (5) years.

XI.     PATENT AND COPYRIGHT INFRINGEMENT

11.1    UMC Warranties. UMC represents, warrants and covenants that: (a) the UMC
        Cells will not infringe or misappropriate any patent, copyright, tirade
        secret, trademark, mask work right, or any proprietary right of any
        third party; (b) entering into and performance of this Agreement does
        not contravene the terms, provisions or conditions of any instrument or
        contract by and between UMC and any third party; (c) the UMC Cells shall
        be original works of UMC or its subcontractors who have granted
        ownership to UMC, (d) UMC has not previously granted, and neither will
        grant in the future, any rights in the UMC Cells that are inconsistent
        with the ownership rights and licenses granted to Virage Logic herein;
        (e) UMC has the rights and abilities to perform its obligations
        hereunder; (f) all hardware, software and/or firmware delivered by UMC
        individually or in combination as an integrated system, as the case may
        be, shall accurately and automatically process any and all date and
        date-related data including, but not limited to calculating, comparing,
        and sequencing and that such date-related processing will take into
        consideration leap year calculations; and (a) the UMC Cells will contain
        no computer viruses or other contaminants, including but not limited to
        any code or instructions that may enable unauthorized access to, or
        damage, modify or disable, programs or data stored on or transmitted by
        a computer system in a manner not intended by the owner and/or user of
        such computer system.

11.2    UMC Indemnity. UMC shall, at its own expense, subject to the limitations
        set forth in Sections 9.1 and 9.2 above, indemnify, hold harmless, and
        defend or at its option, settle any claim, suit, or proceeding brought
        by a third party against Virage Logic for infringement of (i) any third
        party's copyright or misappropriation of any third party trade secret,
        (ii) any patent knowingly infringed by UMC that is issued in the United
        States, Taiwan, Japan or the European Union, or (iii) any patent issued
        in the United States, Taiwan, Japan or the European Union that is
        unknowingly infringed by UMC, by virtue of Virage Logic's authorized
        use, reproduction, distribution and

                                       9
<PAGE>   10

        sublicensing of any of the UMC Cells as provided by UMC pursuant to the
        terms of this Agreement and shall pay any settlement amounts or damages
        finally awarded in such claim, suit or proceeding; provided that Virage
        Logic: (a) promptly notifies UMC in writing of such claim, suit or
        proceeding, (b) gives UMC sole control over the defense and/or
        settlement of such claim, suit or proceeding; and (c) fully cooperates
        and provides all available information, assistance and authority to
        defend or settle the claim, suit or proceeding. UMC shall not be liable
        for any costs, expenses, damages or fees incurred by Virage Logic in
        defending such action or claim unless authorized in advance in writing
        by UMC or UMC has failed to fulfill its obligations under the terms of
        this clause in a timely manner. This Section 11.2 shall not apply to
        claims arising out of modifications to the UMC Cells as provided by UMC
        or arising out of combination of the UMC Cells with other technology.

11.3    UMC Control. Any action to be brought to prevent or enjoin any third
        party from infringement of any patent, copyright or other proprietary
        rights of UMC with respect to UMC Cells shall be brought exclusively by
        MAC or UMC's designee, in UMC's sole discretion and as between UMC and
        Virage Logic, at UMC's sole cost and expense.

11.4    Potential Infringement. If the UMC cells are, or in UMC's opinion are
        likely to become, the subject of a claim, suit, or proceeding alleging
        infringement, UMC will use good faith and reasonable efforts: (a) to
        procure at no cost to Virage Logic, the right to continue using,
        reproducing, distributing and sublicensing the UMC cells; (b) to replace
        or modify the UMC cells, at no cost to Virage Logic, to make them
        non-infringing, provided that substantially the same function is
        performed by the replacement of modified UMC cells, or (c) if the right
        to continue using, reproducing, distributing and sublicensing the UMC
        cells cannot be reasonably procured for Virage Logic or the UMC Cells
        cannot be replaced or modified to make them non-infringing, terminate
        the license of such UMC cells hereunder; provided, that UMC's indemnity
        obligations shall continue indefinitely as to all use, reproduction,
        distribution and sublicensing of the UMC cells prior to such
        termination.

11.5    Sole Obligation. The foregoing states UMC's sole obligations and entire
        liability with respect to any claim of infringement of the UMC cells of
        any intellectual property or other rights of any third party.

11.6    Virage Warranties. Virage Logic represents, warrants and covenants that:
        (a) the Licensed Libraries will not infringe or misappropriate any
        patent, copyright, trade secret, trademark, mask work right, or any
        proprietary right of any third party; (b) entering into and performance
        of this Agreement does not contravene the terms, provisions or
        conditions of any instrument or contact by and between Virage Logic and
        any third party; (c) the Deliverables shall be an original work of
        Virage Logic or its subcontractors who have granted ownership to Virage
        Logic, (d) Virage Logic has not previously granted, and neither will
        grant in the future, any rights in the Deliverables that are
        inconsistent with the ownership rights and licenses granted to UMC
        herein; (e) Virage Logic has the rights and abilities to perform its
        obligations hereunder; (f) all hardware, software and/or firmware
        delivered individually or delivered in combination as an integrated
        system, as the case may be, shall accurately and automatically process
        any and all date and date-related data including, but not limited to
        calculating, comparing, and sequencing and that such date-related
        processing will take into consideration leap year calculations; and (a)
        the Deliverables will contain no computer viruses or other contaminants,
        including but not limited to any code or instructions that may enable
        unauthorized access to, or damage, modify or disable, programs or data
        stored on or transmitted by a computer system in a manner not intended
        by the owner and/or user of such computer system.

11.7    Virage Indemnity. Virage Logic shall, at its own expense, , subject to
        the limitations set forth in Sections 9.1 and 9.2 above, indemnify, hold
        harmless, and defend or at its option, settle any claim, damages, suits,
        or proceeding brought by a third party against UMC: (i) for infringement
        of any third party's copyright or misappropriation of a third party
        trade secret, (ii) for infringement of a

                                       10
<PAGE>   11

        third party patent issued in the United States, Taiwan, Japan or the
        European Union where such patent was knowingly infringed by Virage
        Logic; and (iii) for infringement of a third party patent issued in the
        United States, Taiwan, Japan or the European Union where such patent was
        unknowingly infringed by Virage Logic, by virtue of UMC's authorized
        use, reproduction, distribution and sublicensing of any of the Licensed
        Libraries pursuant to the terms of this Agreement, and shall pay any
        settlement amounts or damages finally awarded in such claim, suit or
        proceeding; provided that UMC: (a) promptly notifies Virage Logic in
        writing of such claim, suit or proceeding, (b) gives Virage Logic sole
        control over the defense and/or settlement of such claim, suit or
        proceeding; and (c) reasonably cooperates and provides all available
        information, assistance and authority to defend or settle the claim,
        suit or proceeding. Virage Logic shall not be liable for any costs,
        expenses, damages or fees incurred by UMC in defending such action or
        claim unless authorized in advance in writing by Virage Logic or Virage
        Logic has failed to fulfill its obligations under the terms and
        conditions of this clause in a timely manner. This Section 11.7 shall
        not apply to claims arising out of modifications to the Licensed
        Libraries as provided by Virage Logic or arising out of combination of
        the Licensed Libraries with other technology.

11.8    Virage Control. Any action to be brought to prevent or enjoin any third
        party from infringement of any patent, copyright or other proprietary
        right of Virage Logic with respect to the licensed Libraries shall be
        brought exclusively by Virage Logic or Virage Logic's designee, in
        Virage Logic's sole discretion and as between Virage Logic and UMC, at
        Virage Logic's sole cost and expense.

11.9    Potential Infringement. If the Licensed Libraries are, or in Virage
        Logic's opinion are likely to become, the subject of a claim, suit, or
        proceeding alleging infringement, Virage Logic will use good faith and
        reasonable efforts: (a) to procure at no cost to UMC the right to
        continue using, reproducing, distributing and sublicensing the Licensed
        Libraries; (b) to replace or modify the Licensed Libraries, at no cost
        to UMC, to make them non-infringing, provided that substantially the
        same function is performed by the replacement of modified the Licensed
        Libraries, or (c) if the right to continue using, reproducing,
        distributing and sublicensing the Virage Logic Cells cannot be
        reasonably procured for UMC, or the licensed Libraries cannot be
        replaced or modified to make them non-infringing, terminate the license
        of such Virage Logic products hereunder; provided, that Virage Logic's
        indemnity obligations shall continue indefinitely as to all use,
        reproduction, distribution and sublicensing of the Licensed Libraries
        prior to such termination.

11.10   Sole Obligation. The foregoing states Virage Logic's sole obligations
        and entire liability with respect to any claim of infringement of the
        Licensed Libraries of any intellectual property or other rights of any
        third party.

XII.    GENERAL TERMS

12.1    Choice of Law. This Agreement shall be governed by and construed in
        accordance with the laws of State of California. In the event of any
        dispute arising out of or in connection with this Agreement which cannot
        be amicably settled by the parties hereto, the parties agree to submit
        any such dispute to binding arbitration in accordance with the Rules of
        American Arbitration Association. All information relating to or
        disclosed by either party in connection with the arbitration shall be
        treated by the parties as confidential information and no disclosure of
        such information shall be made by either party without the prior written
        consent of the other party.

12.2    Export Controls. Both parties agree and certify that neither party will
        export the materials nor the direct product thereof outside the United
        States except as authorized and as permitted by the laws and regulations
        of the United States; provided that the party providing such information
        or other items subject to export control restrictions identify such
        restrictions to the receiving party.

12.3    Assignment. This Agreement may not be assigned by either party without
        the prior written consent from the other party, including pursuant to a
        merger or acquisition or operation of law.

                                       11
<PAGE>   12

12.4    Audit. UMC shall keep full and accurate books and records pertaining to
        UMC's performance under this Agreement for a period of at least two (2)
        years after the date a given quarterly payment is made by UMC to Virage
        Logic. UMC shall permit a mutually appointed 3rd party who has signed a
        UMC NDA, on behalf of Virage Logic, to examine such books and records,
        at Virage Logic's sole cost and expense, upon reasonable prior written
        notice during normal working hours, but not later than two (2) years
        following the payment in question nor more frequently than once each
        year, for the sole purpose of verifying the compensation payments and
        reports and accountings related thereto. Prompt adjustment shall be made
        to compensate for any errors or omissions disclosed by such examination.
        In the event such examination shows underreporting and underpayment in
        excess of seven and one half percent (7.5%) in any twelve (12) month
        period ending 3 months prior to the date of such examination, then UMC
        shall pay Virage Logic the reasonable cost of any such examination as
        well as the unpaid compensation payments.

12.5    Notices. Any notice, report, approval or consent required or permitted
        hereunder shall be in writing and will be deemed to have been duly given
        if delivered personally, by facsimile, or mailed by first-class,
        registered or certified mail, postage prepaid to the respective
        addresses of the parties as set forth in this Agreement. If to Virage
        Logic, Attention: VP, Finance.

        If to UMC:

                      Attn:

                      Copy to:
                      Law+
                      993 Highlands Circle
                      Los Altos, CA 94024
                      Attn:  Peter Courture, Esq.
                      Fax:   (650) 968-8885

12.6    No Waiver. Failure by either party to enforce any provision of this
        Agreement will not be deemed a waiver of future enforcement of that or
        any other provision.

12.7    Independent Contractors. The relationship of Virage Logic and UMC
        established by this Agreement is that of independent contractors, and
        nothing contained in this Agreement shall be construed (i) to give
        either party the power to direct or control the day-to-day activities of
        the other or (ii) to constitute the parties as partners, joint ventures,
        co-owners or otherwise as participants in a joint or common undertaking.
        Neither party will have the power to bind the other or incur obligations
        on the other's behalf without the other's prior written consent

12.8    Severability. If for any reason a court of competent jurisdiction finds
        any provision of this Agreement, or portion thereof, to be
        unenforceable, that provision of the Agreement will be enforced to the
        maximum extent permissible so as to effect the intent of the parties,
        and the remainder of this Agreement will continue in full force and
        effect.

12.9    Attorneys' Fees. The prevailing party in any action to enforce the
        Agreement shall be entitled to recover the costs and expenses including,
        without limitation, reasonable attorneys' fees.

12.10   Injunctive Relief. The parties agree that a material breach of this
        Agreement adversely affecting both parties' Intellectual Property Rights
        which would cause irreparable injury to the nonbreaching party for which
        monetary damages would not be an adequate remedy. Therefore, the parties
        agree that the non-breaching party shall be entitled to equitable relief
        in addition to any remedies it may have hereunder or at law.

                                       12
<PAGE>   13

12.11   Force Majeure. Except for the obligation to make payments hereunder,
        nonperformance of either party shall to be excused to the extent that
        performance is rendered impossible by strike, fire, flood, governmental
        action, failure of suppliers, earthquake, or any other reason where
        failure to perform is beyond the reasonable control of the
        non-performing party.

12.12   Entire Agreement. This Agreement, including all Supplements, constitutes
        the entire agreement between the parties with respect to the subject
        matter hereof, and supersedes all prior agreements or representations,
        oral or written, regarding such subject matter. This Agreement may not
        be modified or amended except in writing, signed by a duly authorized
        representative of both parties.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed in duplicate on their behalf by their duly authorized officers and
representatives on the date given above.

UMC GROUP                                   VIRAGE LOGIC CORPORATION

By:                                         By:
   -------------------------------             ---------------------------------

----------------------------------          ------------------------------------
(Print Name)                                (Print Name)

----------------------------------          ------------------------------------
(Title)                                     (Title)

----------------------------------          ------------------------------------
(Date)                                      (Date)

                                       13
<PAGE>   14

              EXHIBIT A: VIRAGE LOGIC 0.18UM & 0.15UM DELIVERABLES
                            REVISION 0, DATED 3/15/00

The content of this Exhibit shall be modified from time to time as mutually
agreed to by both parties:

DEFINITION OF UMC 0.18UM AND 0.15UM DELIVERABLES:

Models and User Documentation ("Front-end Views"):
1.      Verilog Models with SDF Support
2.      VHDL (VITAL) Models with SDF Support
3.      Symbols for composer (RAM support not required)
4.      Symbols for Synopsys (RAM support not required)
5.      Symbols for EDIF 200 (RAM support not required)
6.      PrimeTime Models with SDF Support
7.      Synopsys Synthesis Models (.lib file) - including power information for
        power design, wire-load model (options for customer to choose)
        constructed by place & route results.
8.      Cadence TLF 3.0 Models
9.      Star-DC timing models
10.     LEF/Abstracts for Silicon Ensemble/Cell3/Aquarius/Apollo
11.     Memory compiler abstract for Aquarius & Apollo: manual and automated
        approach
12.     CLF models for Avant!
13.     Derating factors (including pin-to-pin delay time.  Timing constraints :
        setup time, hold time, recovery time, min. pulse width).
               ** Process-derating factor when typical is set to 1
               ** Temp. derating factor when ____ degrees C is set to 1
               ** Voltage derating factor when VDD = ______ V is set to 1
14.     Automatic Data Sheet Generator
15.     Customer Documentation*

-       Note that item 1, 2, 7, 8, 10, 11, 14, 15 are the standard deliverables,
        other items are delivered upon customer request.

Physical Views ("Back-End" Views):
1.      GDSII
2.      Place & Route technology file for Silicon Ensemble/Cell3/Aquarius/Apollo
        ** Provide sample solution in deliverable UMC needs to review and run
           test case).
3.      SPICE netlist for LVS

-       Note that item 2 will be shipped as per customer request

                                       14
<PAGE>   15

          EXHIBIT A: VIRAGE LOGIC 0.18UM & 0.15UM DELIVERABLES (con't.)
                            REVISION 0, DATED 3/15/00

CUSTOMER DOCUMENTATION
Documentation Describing Characterization and Verification Methodology

*Note: Customer Documentation includes:

1)      Standard Cell Databook (if provided by Virage Logic) (including power
        route guide)

2)      Users Manual for Custom-Touch Memory Compilers which may include:

               1.     Installation and usage instructions
               2.     Process Optimization for UMC 0.18 process
               3.     Memory architecture
                         Optimizing clock-to-wordline driver performance
                         Optimizing wordline driver-to-sensing performance
                         Optimizing sensing-to-output drive performance
                         Optimizing sense amplifier recovery time
                         Self-timing and duty-cycle independence

               4.     Memory Compiler
                         User options - Global file parameters
                         Performance metrics
                         Design specifications
                         Run-time configuration
                         Model views
                         Functional description
                         Timing diagrams
                         Characterization conditions

               5.     Test Interface
                         BIST
                         Parallel test
                         Scan test
                         Serial test

LICENSED LIBRARIES (AS DEFINED IN THE DATA SHEETS ATTACHED HERETO AS EXHIBIT F)
2 port (1R, 1W) Register File compiler
1 port high density SRAM compiler
Dual port (2RW) high density SRAM compiler

IN WITNESS WHEREOF, the parties have caused this Exhibit revision to be executed
on their behalf by their duly authorized officers and representatives on the
date given below. This revision hereby supersedes all previous versions of this
Exhibit.

UMC GROUP                                   VIRAGE LOGIC CORPORATION

By:                                         By:
    ----------------------------               ---------------------------------

--------------------------------            ------------------------------------
(Print Name)                                (Print Name)

--------------------------------            ------------------------------------
(Date)                                      (Date)

                                       15
<PAGE>   16

                             EXHIBIT B: SPECIFICATIONS
                             REVISION 0, DATED 3/15/00

The contents of this Exhibit shall be modified from time to time as mutually
agreed to by both parties:

        Please see 0.18(mu)m & 0.15(mu)m UMC Memory Compiler Data Sheets
        1)  Dual Port Bit cell
        2)  ROM Bit cell
        3)  Register File single port bit cell
        4)  Virage Logic Bit cell for Single port High Density

        IN WITNESS WHEREOF, the parties have caused this Exhibit revision to be
executed on their behalf by their duly authorized officers and representatives
on the date given below. This revision hereby supersedes all previous versions
of this Exhibit.

UMC GROUP                                   VIRAGE LOGIC CORPORATION

By:                                         By:
    ----------------------------               ---------------------------------

--------------------------------            ------------------------------------
(Print Name)                                (Print Name)

--------------------------------            ------------------------------------
(Date)                                      (Date)

                                       16
<PAGE>   17

                          EXHIBIT C: DELIVERABLE SCHEDULE
                                REVISION 0, 3/15/00

                 EXHIBIT C1: 0.18UM UMC SPECIFIC MEMORY COMPILERS

<TABLE>
<CAPTION>
UMC SPECIFICATIONS                        VERSION     DATE      DELIVERY     UMC CONTROL #
----------------------------------------- ----------- --------- ------------ --------------------
<S>                                       <C>         <C>       <C>          <C>
Spice Models                                                    TBD
----------------------------------------- ----------- --------- ------------ --------------------
Design Rules                                                    TBD
----------------------------------------- ----------- --------- ------------ --------------------
DRC runset                                                      TBD
----------------------------------------- ----------- --------- ------------ --------------------
UMC Single-Port Memory Bit Cell                                 TBD
----------------------------------------- ----------- --------- ------------ --------------------
Sizing Equation                                                 TBD
----------------------------------------- ----------- --------- ------------ --------------------
Layer Mapping                                                   TBD
----------------------------------------- ----------- --------- ------------ --------------------
</TABLE>

KEY MILESTONES (EFFECTIVE DATE + RELATIVE TIMES)

<TABLE>
<CAPTION>
--------------------------------------- ------------------------- -------------------------------
            REQ. ACTIVITY                         WHO                     DELIVERY TIME
                                                                   (RELATIVE TO EFFECTIVE DATE)
--------------------------------------- ------------------------- -------------------------------
<S>                                     <C>                       <C>
Tech file 0.18um data including         UMC                       Complete
Dracula or Calibre runset
--------------------------------------- ------------------------- -------------------------------
Tech file calibration & sample set      VIRAGE LOGIC              TBD
--------------------------------------- ------------------------- -------------------------------
Tech file review & sign-off             UMC                       TBD
--------------------------------------- ------------------------- -------------------------------
Create memory compilers:                VIRAGE LOGIC
2 port register file                                              Effective Date of this
                                                                  agreement +4 wks

1 port high density                                               Effective Date of this
                                                                  agreement +12 wks

2 port high density                                               Effective Date of this
                                                                  agreement +18 wks
--------------------------------------- ------------------------- -------------------------------
</TABLE>

                 EXHIBIT C2: 0.15UM UMC SPECIFIC MEMORY COMPILERS

<TABLE>
<CAPTION>
UMC SPECIFICATIONS                        VERSION     DATE      DELIVERY     UMC CONTROL #
----------------------------------------- ----------- --------- ------------ --------------------
<S>                                       <C>         <C>       <C>          <C>
Spice Models                                                    TBD
----------------------------------------- ----------- --------- ------------ --------------------
Design Rules                                                    TBD
----------------------------------------- ----------- --------- ------------ --------------------
DRC runset                                                      TBD
----------------------------------------- ----------- --------- ------------ --------------------
UMC Single-Port Memory Bit Cell                                 TBD
----------------------------------------- ----------- --------- ------------ --------------------
Sizing Equation                                                 TBD
----------------------------------------- ----------- --------- ------------ --------------------
Layer Mapping                                                   TBD
----------------------------------------- ----------- --------- ------------ --------------------
</TABLE>

KEY MILESTONES (EFFECTIVE DATE + RELATIVE TIMES)

<TABLE>
<CAPTION>
-------------------------------------- -------------------------- -------------------------------
            REQ. ACTIVITY                         WHO                     DELIVERY TIME
                                                                   (RELATIVE TO EFFECTIVE DATE)
-------------------------------------- -------------------------- -------------------------------
<S>                                    <C>                        <C>
Tech file 0.15um data including        UMC                        TBD
Dracula or Calibre runset
-------------------------------------- -------------------------- -------------------------------
Tech file calibration & sample set     VIRAGE LOGIC               TBD
-------------------------------------- -------------------------- -------------------------------
Tech file review & sign-off            UMC                        TBD
-------------------------------------- -------------------------- -------------------------------
Create synchronous single-port         VIRAGE LOGIC               TBD
memory compiler using UMC bit cell
for larger memories
-------------------------------------- -------------------------- -------------------------------
</TABLE>

                                       17
<PAGE>   18

                     EXHIBIT C: DELIVERABLE SCHEDULE (con't)
                               REVISION 0, 3/15/00

IN WITNESS WHEREOF, the parties have caused this Exhibit revision to be executed
on their behalf by their duly authorized officers and representatives on the
date given below. This revision hereby supersedes all previous versions of this
Exhibit.

UMC GROUP                                   VIRAGE LOGIC CORPORATION

By:                                         By:
    ----------------------------               ---------------------------------

--------------------------------            ------------------------------------
(Print Name)                                (Print Name)

--------------------------------            ------------------------------------
(Date)                                      (Date)

                                       18
<PAGE>   19

                              EXHIBIT D: UMC CELLS
                               REVISION 0, 3/15/00

The contents of this Exhibit shall be modified from time to time as mutually
agreed to by both parties:

<TABLE>
<CAPTION>
PART NUMBER         DESCRIPTION
-----------         -----------
<S>                 <C>
0.18um              4.0 um2 Single-Port SRAM bit cell (Borderless)
                    5.5 um2 Single-Port SRAM bit cell (Bordered)

0.15um              ___um2 Single-Port SRAM bit cell (Borderless)
                    ___um2 Single-Port SRAM bit cell (Bordered)
</TABLE>

IN WITNESS WHEREOF, the parties have caused this Exhibit revision to be executed
on their behalf by their duly authorized officers and representatives on the
date given below. This revision hereby supersedes all previous versions of this
Exhibit.

UMC GROUP                                   VIRAGE LOGIC CORPORATION

By:                                         By:
    ----------------------------               ---------------------------------

--------------------------------            ------------------------------------
(Print Name)                                (Print Name)

--------------------------------            ------------------------------------
(Date)                                      (Date)

                                       19
<PAGE>   20

                      EXHIBIT E: LIST OF EXCLUDED CUSTOMERS
                               REVISION N/C, DATED

List to be updated as appropriate. Companies on this list shall not receive
Licensed Libraries from Virage Logic unless first approved by UMC:

IN WITNESS WHEREOF, the parties have caused this Exhibit revision to be executed
on their behalf by their duly authorized officers and representatives on the
date given below. This revision hereby supersedes all previous versions of this
Exhibit.

UMC GROUP                                   VIRAGE LOGIC CORPORATION

By:                                         By:
    ----------------------------               ---------------------------------

--------------------------------            ------------------------------------
(Print Name)                                (Print Name)

--------------------------------            ------------------------------------
(Date)                                      (Date)

                                       20
<PAGE>   21

                             EXHIBIT F: DATA SHEETS
                            REVISION 0, DATED 3/15/00

The data sheets provided herein are preliminary and may change during the design
of the compilers due to any number of issues. Any change to the datasheet due to
the design of the compilers will be brought to the attention of UMC before being
released.

IN WITNESS WHEREOF, the parties have caused this Exhibit revision to be executed
on their behalf by their duly authorized officers and representatives on the
date given below. This revision hereby supersedes all previous versions of this
Exhibit.

UMC GROUP                                   VIRAGE LOGIC CORPORATION

By:                                         By:
    ----------------------------               ---------------------------------

--------------------------------            ------------------------------------
(Print Name)                                (Print Name)

--------------------------------            ------------------------------------
(Date)                                      (Date)

                                       21
<PAGE>   22

        EXHIBIT G: UMC/VIRAGE LOGIC RECIPROCAL NON-DISCLOSURE AGREEMENT,
                                  DATED 4/23/98

                                       22
<PAGE>   23

               EXHIBIT H: VIRAGE LOGIC'S MASTER LICENSE AGREEMENT

                            MASTER LICENSE AGREEMENT

This Master License Agreement ("Agreement") is made and entered into
_____________ ("Effective Date") by and between Virage Logic ("Virage Logic"), a
California corporation, with offices at 46501 Landing Parkway, Fremont,
California 94538, and ______________ ("Licensee"), a ___________ corporation,
with offices at __________.

This Agreement is a master license agreement that will govern the license of
certain Virage Logic software products and other technology. Licensed Materials
will be listed in schedule(s) ("Program Schedule(s)"), that may be added hereto
from time to time upon mutual execution of such Program Schedule(s).

1.      DEFINITIONS.

1.1     "Compiler" means each Virage Logic development tool listed in a Program
Schedule, which tool consists of: (i) object code versions of a set of
executable software program(s), (ii) libraries containing design elements of
memory cell arrays and control logic, and (iii) all related documentation. Each
Compiler includes any and all updates, replacements and enhancements thereto
that Virage Logic delivers to the Licensee.

1.2     "Instances" means designs of discrete integrated circuit memory cell
arrays and corresponding control logic, which me either generated for Licensee
by Virage Logic and described in a Program Schedule, or are generated by
Licensee through the use of a Compiler. Instances may be expressed in GDSII,
hardware definition languages, or other formats. Each Instance includes all
documentation related to the design and any and all updates, replacements and
enhancements thereto that Virage Logic delivers to the Licensee.

1.3     "Licensed Material(s)" means, collectively, the Compiler(s) and any
Instance(s) generated for Licensee by Virage Logic.

1.4     "Intellectual Property Rights" means patent rights (including patent
applications and disclosures), rights of priority, mask work rights, copyrights,
moral rights, trade secrets, know-how and any other intellectual property rights
recognized in any country or jurisdiction of the world; exclusive of trademarks,
trade names, logos, service marks, and other designations of source.

2.     LICENSE GRANTS.

2.1     License Grants. Virage Logic grants to Licensee, subject to the terms
        and conditions of this Agreement, including but not limited to the
        conditions of pertinent Program Schedules, a non-exclusive,
        non-transferable, fee-bearing license to:

        (a)         use each Compiler to create Instances;

        (b)         use and reproduce Instances (whether created by Licensee or
        by Virage Logic on Licensee's behalf) solely to design and develop
        Licensee's integrated circuits; and

        (c)         distribute such Instances solely: (i) in GDSII data format
        to the semiconductor manufacturer set forth for the relevant Compiler or
        Instance it the pertinent Program Schedule and solely for the purpose of
        enabling such manufacturer to manufacture integrated circuits for
        Licensee, and (ii) as incorporated into physical implementations of
        Licensee's integrated circuits as reduced to silicon.

2.2     Limitations on Licenses.

        (a)         Licensee may use Compilers and Instances only for the
        applications and processes set farm Or those Compilers and Instances it
        me pertinent Program Schedule.

        (b)         Licensee has no right to transfer, sublicense, or otherwise
        distribute Licensed Materials except as expressly set forth in this
        Agreement, and without limiting the generality of the foregoing,
        information (including, but not limited to GDSII data) that reflects any
        element of Compilers or Instances may be provided only to the
        semiconductor manufacturer set forth for the relevant Compilers or
        Instances in the pertinent Program Schedule and solely for the purpose
        of enabling such manufacturer to manufacture integrated circuits for
        Licensee.

        (c)         Licensee will not: (i) copy or otherwise reproduce any
        Licensed Materials, in whole or in part, except as expressly authorized
        by this Agreement or to make reasonable numbers of back-up

                                       23
<PAGE>   24

        copies; or (ii) use the Licensed Materials in any manner to provide
        services to third parties, including, but not limited to, integrated
        circuit design services.

        (d)         Licensee's rights in the Licensed Materials will be limited
        to those expressly granted in this Agreement, and Virage Logic reserves
        all moan and licenses not expressly granted to Licensee in this
        Agreement.

3.      PROPRIETARY RIGHTS.

3.1     Virage Logic's Ownership.

        (a)         The Licensed Materials are and will remain the sole and
        exclusive property of Virage Logic and its suppliers, if any, whether
        the Licensed Materials are separate or combined with any other products.
        Virage Logic's rights under this subsection (a) will include, but not be
        limited to, all copies of the Licensed Materials, in whole and in part;
        and all Intellectual Property Rights in the Licensed Materials.

        (b)         Licensee will not delete or in any manner alter the
        Intellectual Property Rights notices of Virage Logic and its suppliers,
        if any, appearing on the Licensed Materials as delivered to Licensee. As
        a condition of the license rights granted to Licensee in this Agreement,
        Licensee will reproduce and display such notices on each copy it makes
        of any Licensed Material.

        (c)         Nothing in this Agreement grants Licensee any rights in or
        to use any of the Virage Logic's trademarks, tradenames, service marks,
        and/or service names.

4.      PAYMENT; TAXES.

        Licensee will pay Virage Logic the license fee(s) set forth Attachment.
Payments made under this Agreement after their due date will incur interest at a
rate equal to 1.5% per month or the highest rate permitted by applicable law,
whichever is lower. All license fees and other charges stated herein are
exclusive of any sales, use, value-added, or other federal, state or local taxes
(excluding taxes based on Virage Logic's net income) and Licensee agrees to pay
such taxes.

5.      CONFIDENTIALITY.

5.1     Confidential Information. "Confidential Information" means: (i) the
Licensed Materials; and (ii) any business or technical information of Virage
Logic or Licensee, that is designated by the discloser as "confidential" or
"proprietary" and, if orally disclosed, summarized in writing by the discloser
and transmitted to the recipient within thirty (30) days of such disclosure.

5.2     Exclusions. Confidential Information shall not include information that
the recipient can document: (i) is or becomes generally known or available by
publication, commercial use or otherwise through no fault of the recipient; (ii)
is known to the recipient at the time of disclosure without violation of any
confidentiality restriction and without any restriction on the receiving party's
further use or disclosure; (iii) is independently developed by the recipient;
(iv) was received from a third party rightfully in possession of such
information without an obligation of confidentiality; (v) is permitted for
release or disclosure to any third party by me written prior consent of the
discloser; or (vi) is intentionally furnished to a third party by the discloser
without imposing confidentiality restrictions on such third party.

5.3     Use and Disclosure Restrictions. For a term of three (3) years from me
last disclosure of Confidential Information, each party will refrain from using
the other party's Confidential Information except as permitted herein, and will
use the same level of care, but in any event will not use less than reasonable
care, to prevent disclosure of the other party's Confidential Information that
it uses with its own information of similar sensitivity and importance. However,
each party may disclose Confidential Information of me other party: (i) pursuant
to the order or requirement of a court, administrative agency, or other
governmental body, provided that the disclosing party gives reasonable notice to
the other party to contest such order or requirement; and (ii) on a confidential
basis to legal or financial advisors. Notwithstanding anything herein, Licensee
will not allow any individual who is an employee or agent of a direct competitor
of Virage Logic to have access to the Licensed Materials.

5.4     No Reverse Engineering. Licensee acknowledges and agrees that the
Licensed Materials contain trade secrets and other proprietary information of
Virage Logic. In order to protect those trade secrets and other proprietary
information, Licensee agrees that, except as expressly permitted under
applicable law, it will not reverse engineer, disassemble, or otherwise attempt
to derive the source code form of the Licensed Materials.

                                       24
<PAGE>   25

6.      WARRANTY.

6.1     Power and Authority. Each party wan-ants to the other that it has
sufficient corporate power and authority to enter into this Agreement and to
grant to the other all licenses and rights that it grants under this Agreement.

6.2     Performance Warranty. Virage Logic warrants, for a period of ninety (90)
days from the date Virage Logic delivers the Licensed Materials to Licensee,
that the Licensed Materials will substantially conform to the functional
specifications of the Licensed Materials provided to Licensee by Virage Logic.
The foregoing warranty does not apply to any element of the Licensed Materials
that has been modified, combined with other products or used improperly.

6.3     Sole and Exclusive Remedy. FOR ANY BREACH OF THE WARRANTY CONTAINED IN
SECTION 6.2, LICENSEE'S SOLE AND EXCLUSIVE REMEDY WILL BE THAT VIRAGE LOGIC
WILL, AT ITS OPTION, EITHER REPLACE OR CORRECT THE DEFECTIVE PORT-ION OF THE
LICENSED MATERIALS WITHIN 30 DAYS OF BEING INFORMED OF THE BREACH OF WARRANTY.

6.4     Disclaimer of Other Warranties. THE WARRANTIES IN THIS SECTION ARE IN
LIEU OF ALL OTHER WARRANTIES, EXPRESS AND IMPLIED, INCLUDING BUT NOT LIMITED TO
ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND
NONINFRINGEMENT. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, VIRAGE LOGIC
DOES NOT WARRANT THAT THE LICENSED MATERIALS WILL MEET LICENSEE'S REQUIREMENTS,
THAT THE LICENSED MATERIALS WILL OPERATE IN THE COMBINATIONS THAT LICENSEE MAY
SELECT OR USE, THAT THE OPERATION OF THE LICENSED MATERIALS WILL BE
UNINTERRUPTED OR ERROR FREE, OR THAT ALL ERRORS IN THE LICENSED MATERIALS WILL
BE CORRECTED.

7.      INDEMNITIES.

7.1     Licensee. Subject to the terms of Section 7.2, Licensee agrees to
indemnify Virage Logic against any third party claims against Virage Logic for
loss, damage, liability, or expense (including but not limited to attorneys'
fees) arising out of any acts or omissions of Licensee in connection with
Licensee's activities under this Agreement.

7.2     Infringement Indemnity.

        (a)         Duty to Indemnify and Defend. Virage Logic will indemnify
        Licensee against, and will defend or settle at Virage Logic's own
        expense, subject to the limitations set forth in Section 9 of this
        Agreement, any action or other proceeding brought against Licensee to
        the extent that it is based on a claim that the use of the Licensed
        Materials as licensed in this Agreement infringes any copyright or any
        U.S., Taiwan, European or Japanese patent issued as of the Effective
        Date, or that the Licensed Materials incorporate any misappropriated
        trade secrets. Virage Logic will pay costs, damages, and expenses
        (including reasonable attorneys' fees) finally awarded against Licensee,
        subject to the limitations set forth in Section 9 of this Agreement, in
        any such action or proceeding attributable to any such claim. Virage
        Logic will have no obligation under this Section as to any action,
        proceeding, or claim unless: (i) Virage Logic is notified of it
        promptly; (ii) Virage Logic has sole control of its defense and
        settlement; and (iii) Licensee provides Virage Logic with reasonable
        assistance in its defense and settlement.

        (b)         Injunctions. If Licensee's use of any Licensed Materials
        under the terms of this Agreement is, or in Virage Logic's opinion is
        likely to be, enjoined due to the type of infringement or
        misappropriation specified in subsection (a) above, then Virage Logic
        may, at its sole option and expense, either: (i) procure for Licensee
        the right to continue using such Licensed Materials under the terms of
        this Agreement; (ii) replace or modify such Licensed Materials so that
        they are noninfringing and substantially equivalent in function to the
        enjoined Licensed Materials; or (iii) if options (i) and (ii) cannot be
        accomplished despite the reasonable efforts of Virage Logic, terminate
        Licensee's rights and Virage Logic's obligations under this Agreement
        with respect to such Licensed Materials.

        (c)         Sole Remedy. THE FOREGOING ARE VIRAGE LOGIC'S SOLE AND
        EXCLUSIVE OBLIGATIONS, AND LICENSEE'S SOLE AND EXCLUSIVE REMEDIES, WITH
        RESPECT TO INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY
        RIGHTS.

                                       25
<PAGE>   26

        (d)         Exclusions. Virage Logic will have no obligations under this
        Section 7.2 with respect to infringement or misappropriation arising
        from: (i) modifications to the Licensed Materials by any party other
        than Virage Logic, (ii) Licensed Material specifications requested by
        Licensee, (iii) any Instances generated by Licensee except to the extent
        such infringement or misappropriation existed in the Licensed Materials
        as provided to Licensee, or (iv) the use of the Licensed Materials in
        combination with products or technology not provided by Virage Logic.

8.      TERM AND TERMINATION.

8.1     Term. The term, of this Agreement will begin on me Effective Date and
will continue, unless terminated earlier in accordance with the provisions of
8.2 below, for the period specified in the Program Schedule(s) solely for the
applications and processes for the Licensed materials set forth therein.

8.2     Events of Termination.

        (a)         Either party will have the right to terminate this Agreement
        if: (i) the other party breaches any material term or condition of this
        Agreement and fails to cure such breach within thirty (30) days after
        written notice; (ii) the other party becomes the subject of a voluntary
        petition in bankruptcy or any voluntary proceeding relating to
        insolvency, receivership, liquidation, or composition for the benefit of
        creditors; or (iii) the other party becomes the subject of an
        involuntary petition in bankruptcy or any involuntary proceeding
        relating to insolvency, receivership, liquidation, or composition for
        the benefit of creditors, if such petition or proceeding is not
        dismissed within sixty (60) days of filing.

        (b)         Virage Logic will have the right to terminate this Agreement
        if Licensee acquires, consolidates or merges with a direct competitor of
        Virage Logic. For the purposes of this Agreement, a direct competitor of
        Virage Logic is any entity engaged in the commercial sale of Compilers
        and/or Instances as defined in Sections 1.1 and 1.2 of this Agreement
        respectively.

8.3     Effect of Termination. Upon termination or expiration of this Agreement,
Licensee will immediately return to Virage Logic or (at Virage Logic's request)
destroy all copies of the Licensed Materials and other Confidential Information
in its possession or control, and an officer of Licensee will certify to Virage
Logic in writing that Licensee has done so. Provided that Virage Logic did not
terminate the Agreement for Licensee's breach or for the event specified in
section 8.2(b) above, Licensee will have the right to continue to use Licensed
Materials for which Licensee has paid the license fees as of the effective date
of the termination, subject to the terms of Section 2.1.

8.4     No Damages for Termination. Neither party mill be liable to the other on
account of termination or expiration of this Agreement for reimbursement or
damages for the loss of goodwill, prospective profits or anticipated income, or
on account of any expenditures, investments, leases or commitments made by
either party or for any other reason whatsoever based upon or growing out of
such termination or expiration.

8.5     Nonexclusive Remedy. The exercise by either party of any remedy under
this Agreement will be without prejudice to its other remedies under this
Agreement or otherwise.

8.6     Survival. The rights and obligations of the parties contained in
Sections 2.2, 3, 4, 5, 7, 8.3, 8.4, 8.5, 9, and 10 will survive the termination
or expiration of this Agreement.

9.      LIMITATIONS OF LIABILITY.

9.1     Limitations.

        (a)         IN NO EVENT WILL VIRAGE LOGIC BE LIABLE TO LICENSEE FOR ANY
        SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, WHETHER BASED ON BREACH
        OF CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY, OR
        OTHERWISE, AND WHETHER OR NOT VIRAGE LOGIC HAS BEEN ADVISED OF THE
        POSSIBILITY OF SUCH DAMAGE.

        (b)         VIRAGE LOGIC'S TOTAL LIABILITY TO LICENSEE UNDER THIS
        AGREEMENT WILL BE LIMITED TO THE PAYMENTS RECEIVED BY VIRAGE LOGIC FROM
        LICENSEE UNDER THIS AGREEMENT.

9.2     Failure of Essential Purpose. The parties have agreed that the
limitations specified in this Section 9 will survive and apply even if any
limited remedy specified in this Agreement is found to have failed of its
essential purpose.

10.     GENERAL.

                                       26
<PAGE>   27

10.1    Compliance with Law. Each party agrees to comply with all applicable
laws, rules, and regulations in connection with its activities under this
Agreement. Each party shall comply with all applicable international, national,
state, regional and local laws and regulations in connection with its activities
under this Agreement. Without limiting the foregoing, Licensee acknowledges that
all Licensed Materials, including documentation and other Virage Logic technical
data, are subject to export controls imposed by the U.S. Export Administration
Act of 1979, as amended (the "Act"), and the regulations promulgated thereunder.
Licensee shall not export or re-export (directly or indirectly) any Licensed
Materials or other Virage Logic technical data therefor without complying with
the Act and the regulations thereunder.

10.2    Publicity. Virage Logic may include Licensee's name in Virage Logic's
customer list. Virage Logic may also use Licensee's name in Virage Logic
promotional literature and marketing materials, provided that Virage Logic will
obtain Licensee's prior approval, such approval not to be unreasonably withheld
or delayed.

10.3    Assignment. This Agreement will bind and inure to the benefit of each
party's permitted successors and assigns. Licensee may not assign this
Agreement, by operation of law or otherwise, in whole or in part, without Virage
Logic's written consent, which consent will not be unreasonably withheld. Any
attempt to assign this Agreement without such consent will be null and void.

10.4    Governing Law. This Agreement will be governed by and construed in
accordance with the laws of the State of California applicable to agreements
entered into, and to be performed entirely, within California between California
residents. Any suit hereunder will be brought solely in the federal or state
courts in the Northern District of California and Licensee hereby submits to the
personal jurisdiction thereof.

10.5    Injunctive Relief. Licensee acknowledges that the Licensed Materials
contain and embody trade secrets and other intellectual property of Virage
Logic, the disclosure or unauthorized use of which would cause substantial harm
to Virage Logic that could not be remedied by the payment of damages alone.
Accordingly, Virage Logic will be entitled to preliminary and permanent
injunctive relief and other equitable relief for any breach of Licensee's
obligations of confidentiality or use of Licensed Materials not in accordance
with this Agreement.

10.6    Severability. If any provision of this Agreement is found invalid or
unenforceable, that provision will be enforced to the maximum extent
permissible, and the other provisions of this Agreement will remain in force.

10.7    Force Majeure. Except for payments due under this Agreement, neither
party will be responsible for any failure to perform due to causes beyond its
reasonable control (each a "Force Majeure"), including, but not limited to, acts
of God, war, riot, embargoes, acts of civil or military authorities, denial of
or delays in processing of export license applications, fire, floods,
earthquakes, accidents, strikes, or fuel crises, provided that such party gives
prompt written notice thereof to the other party. The dine for performance will
be extended for a period equal to the duration of the Force Majeure, but in no
event longer than sixty (60) days.

10.8    Notices. All notices under this Agreement will be deemed given when
delivered personally, sent by confirmed facsimile transmission, or sent by
certified or registered U.S. mail or nationally-recognized express courier,
return receipt requested, to the address shown below or as may otherwise be
specified by either party to the other in accordance with this Section.

10.9    Independent Contractors. The parties to this Agreement are independent
contractors. There is no relationship of partnership, joint venture, employment,
franchise, or agency between the parties. Neither party will have the power to
bind the other or incur obligations on the other's behalf without the other's
prior written consent.

10.10   Waiver. No failure of either party to exercise or enforce any of its
rights under this Agreement will act as a waiver of such rights.

10.11   Entire Agreement. This Agreement and its exhibits are the complete and
exclusive agreement between the parties with respect to the subject matter
hereof, superseding and replacing any and all prior agreements, communications,
and understandings (both written and oral) regarding such subject matter. This
Agreement may only be modified, or any rights under it waived, by a written
document executed by both parties.

                                       27
<PAGE>   28

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

Licensee:                              VIRAGE LOGIC CORPORATION
         -------------------------
By:                                    By:
   -------------------------------        --------------------------------------
Name:                                  Name:
     -----------------------------          ------------------------------------
Title:                                 Title:
      ----------------------------           -----------------------------------
Address:                               Address:   46501 Landing Parkway
        --------------------------                ------------------------------
                                                  Fremont, California  94538
                                                  ------------------------------
Facsimile:                             Facsimile: 510-360-8099
          ------------------------                ------------------------------

                                       28
<PAGE>   29

                              PROGRAM SCHEDULE NO.

I.      Licensed Materials:

        [ ]      Compiler(s)

        [ ]      Instance(s)

II.     Permitted Use of Licensed Materials"

        (A)    Permitted Processes

        (B)    Permitted Applications

        (C)    Other Restrictions

Licensee:                              VIRAGE LOGIC CORPORATION
         -------------------------
By:                                    By:
   -------------------------------        --------------------------------------
Name:                                  Name:
     -----------------------------          ------------------------------------
Title:                                 Title:
      ----------------------------           -----------------------------------
Address:                               Address:   46501 Landing Parkway
        --------------------------                ------------------------------
                                                  Fremont, California  94538
                                                  ------------------------------
Facsimile:                             Facsimile: 510-360-8099
          ------------------------                ------------------------------

                                       29
<PAGE>   30

                   Attachment A to Program Schedule No.
                                                       ------
                                  LICENSE FEES

                                       30
<PAGE>   31

               EXHIBIT I: UMC'S QUALITY ASSURANCE PROCEDURE
                                                           ------.
                              REVISION N/C, DATED

                                       31<PAGE>   1
                                                                  EXHIBIT 10.16

*CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC
INFORMATION HAS BEEN FILED SEPARATELY WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                                                    CONFIDENTIAL

                               MOSYS-VIRAGE LOGIC
                           MEMORANDUM OF UNDERSTANDING
                              FOR JOINTLY DEVELOPED
                     1T-SRAM(TM) TECHNOLOGY MEMORY COMPILERS

PURPOSE

        To establish a relationship between MoSys Incorporated (MoSys) and
Virage Logic Corporation (Virage) to jointly develop and market 1T-SRAM
technology memory compilers in order to speed proliferation of the MoSys 1T-SRAM
technology and Virage memory compiler technology.

        Following the signature of this MOU both MoSys and Virage will use best
efforts to conclude a definitive agreement within 60 days of the signature of
this MOU.

TERM

        Agreement to have a 3 year duration unless terminated by either party
giving the other 90 days written notice.

PRODUCT

        MoSys and Virage shall jointly develop a multi-megabit 1T-SRAM compiler
for an initial foundry and process. The specification of the compiler shall be
as per the attached specification to be updated by mutual agreement.

        MoSys and Virage shall engineer the 1T-SRAM compiler such that instances
generated include BIST, redundancy and fuse programming to ensure high yield and
density. MoSys and Virage shall provide the plans for all DFT planned; including
but not limited to, BIST, diagnostics, etc. MoSys and Virage to determine before
project start on which parameter to optimize the compilers: low power, speed,
area or any combination of the above factors into one or more compilers.

        The schedule for the joint compiler development project shall be
developed jointly by MoSys and Virage. The current date for the start of the
development is slated to be July 1, 1999. Front-end views would then be
available 6 weeks after project start. The GDS availability date is to be
determined during the schedule development.

        Following this initial joint compiler development MoSys and Virage may
agree to develop additional compilers for further foundries and/or processes.

<PAGE>   2

BUSINESS

        Potential compiler customers of MoSys and Virage can be characterized in
one of three ways: Foundry Users, ASIC Vendors, or semiconductor Integrated
Device Manufacturers (IDMs). The Foundry User is the fabless IC or Systems
Company that goes direct to a licensed Foundry with GDS2 to have the silicon
fabricated. Although a relationship with Foundries will be important in order to
initially develop compilers for their processes and market the results to their
customers, the compilers would not normally be sold to the Foundries themselves.

        The business models, and therefore pricing, for each of these customers
is potentially different. However it is expected to set the same pricing for
ASIC vendors and IDMs, resulting in a simpler compiler pricing structure. All
Foundries, ASIC vendors and IDMs must have a valid 1T-SRAM base technology
license direct from MoSys, who will retain all royalties from that license.

        Any potential 1T-SRAM compiler customer shall be engaged by either
company to determine the need of the customer and determine what course of
action is to be taken to meet and exceed the customers' needs. To that end,
there are four potential engagement scenarios with customers:

        1) Licensing of the 1T-SRAM base technology,

        2) Custom instance development or stand alone chip development,

        3) Instance production using the jointly developed compilers,

        4) Licensing of the Jointly developed compilers themselves.

        In the case of scenarios 1 &2, MoSys shall determine the customers needs
and execute the business with that customer and retain all revenues derived from
such business. MoSys has the sole discretion of directly licensing its 1T-SRAM
technology to its direct customers (Scenarios #1&2).

        In the case of scenarios 3&4, either MoSys or Virage will take the lead
position in determining the customers needs and driving the business with that
customer. In these cases the revenue derived from this business with the
customer will be split between MoSys and Virage as specified in the pricing
section of this agreement. This agreement shall establish the licensing of the
jointly developed compilers incorporating Virage's Compiler Technology and MoSys
1T-SRAM Technology to both companies solely for the purposes of selling the
jointly developed compilers and instances generated from the jointly developed
compilers to customers. Neither MoSys nor Virage may use each other's technology
for any other purpose. The Partner Company takes a secondary role in providing
the product and/or service to the customer in both of the aforementioned

                                      -2-
<PAGE>   3

scenarios 3&4. The ability for the Partner Company to move from a secondary to
primary role in any scenario is only allowed by joint agreement.

        MoSys and Virage will cooperate in Joint selling activities in order to
locate an initial source of NRE fees to help fund development of the compiler
through direct funding of the compiler development or the purchase of a number
of instances. If possible, the first compiler will be developed with common
design rules to allow foundry reuse. MoSys and Virage shall also cooperate on
development of the test chip and silicon validation report with the first
customer. MoSys and Virage shall migrate the developed compiler to additional
foundries based on customer demand.

PRICING

        Although initial pricing is given below, it is expected that pricing
will have to be updated regularly based on the response from the market. MoSys
and Virage will jointly review and, if necessary, amend this pricing by mutual
agreement on a quarterly basis.

        All compiler or compiled instance revenues gained from the jointly
developed compiler products covered by this agreement will be split 50% to MoSys
and 50% to Virage. The pricing below is for the compiler only and does not
include the 1T-SRAM technology license from MoSys, which will require an
additional royalty, together with a license fee from the foundry.

ASIC VENDORS AND IDMS

        Unlimited Compiler License Fee ***.

        Can be converted at customer request to an initial license fee plus
non-capped royalty to at least reach the *** mark. However, both MoSys and
Virage to agree all ASIC Vendor and IDM business proposals prior to customer
commitment.

COMPILERS FOR FOUNDRY USERS

        Unlimited Compiler Site License Fee ***.

        Additional Compiler BIST option Fee ***.

        Compiler royalty (additional to MoSys technology license royalty): MoSys
will assist Virage's negotiations with the foundry to participate in the normal
library EP pool business model royalty. The discount schedule presented in Table
I shall be used in setting discounted pricing for MoSys/Virage products to
prospective customers and applies to MoSys/Virage products only.

                                      -3-
<PAGE>   4

        Any MoSys or Virage specific products included in a deal with a customer
shall not be included in the volume calculation for the purposes of utilizing
Table 1. Any discount in excess of the published discount schedule in Table I to
be extended to any prospective customer is to be agreed by both MoSys and Virage
before being offered.

COMPILED INSTANCES FOR FOUNDRY USERS

        Unlimited worldwide Instance License Fee ***.

        Compiler royalty (additional to MoSys technology license royalty): MoSys
will assist Virage's negotiations with the foundry to participate in the normal
library IP pool business model royalty. The discount schedule presented in Table
I shall be used in setting discounted pricing for MoSys/Virage products to
prospective customers and applies to MoSys/Virage products only.

        Any MoSys or Virage specific products included in a deal with a customer
shall not be included in the volume calculation for the purposes of utilizing
Table 1. Any discount in excess of the published discount schedule in Table I to
be extended to any prospective customer is to be agreed by both MoSys and Virage
before being offered.

TABLE I - VOLUME DISCOUNT TABLE (APPLIES TO COT PRODUCT ONLY)

<TABLE>
<CAPTION>
               VOLUME (LIST PRICE)                        DISCOUNT
               -------------------                        --------
<S>                                                        <C>
                    ***                                     ***

                    ***                                     ***

                    ***                                     ***

                    ***                                     ***

                    ***                                     ***

                    ***                                     ***
</TABLE>

MAINTENANCE AND SUPPORT

        The customer maintenance revenues shall be split 50% MoSys - 50% Virage
as per the agreement that MoSys will answer the physical layout issues resulting
from design rule changes and Virage will answer recharacterization issues,
specific compiler technology issues, EDA models and updates, and will act as the
first line of support to all customers of products borne from this agreement. If
either party finds that this split is not equitable and does not at least cover
the cost of the support provided, the split shall be renegotiated.

                                      -4-
<PAGE>   5

        The maintenance to be charged to the customers shall be 20% of the
compiler list price per year for ASIC and IDM customers and 15% of the list
price per year for Foundry User customers.

MARKETING

        MoSys and Virage agree to perform joint marketing activities to promote
the relationship established by this agreement. The activities shall include,
but not be limited to, the following;

        a) A Joint press release that announces the established partnership,
published after signature of this MOU by both parties,

        b) Joint sales activities to establish the first customer, that will
find the NRE of the first compiler, and also subsequent customers to proliferate
the 1T-SRAM compiler products,

        c) A jointly authored white paper discussing the 1T-SRAM compiler
technology and the Virage compiler technology, and the advantages of both in one
product,

        d) Quarterly technology reviews to inform each party of subsequent
technology developments that could lead to the modification of the product
established under this agreement, or to additional products jointly developed by
the parties,

        e) Advertisement of the compiler in the list of off-the-shelf components
by both MoSys and Virage, including published datasheets to be used by both
companies in the selling of the compiler

<TABLE>
<S>                                     <C>
MOSYS INCORPORATED  /s/ FU-CHIEH HSU    VIRAGE LOGIC CORPORATION  /s/ ADAM KABLANIAN
                   -----------------                             -------------------

Date:  7/1/99                           Date:  6/29/99
     ---------------------------            ---------------------------

Fu-Chieh Hsu                           Adam Kablanian
Chairman, President & CEO              President & CEO
</TABLE>

                                      -5-
<PAGE>   6

                     1T-SRAM COMPILER OUTLINE SPECIFICATION

DELIVERABLES

        -   Data sheet

        -   Verilog model (back-annotatable o/p delays)

        -   VHDL (VITAL95) model (back-annotatable o/p delays)

        -   Synopsys synthesis model

        -   Synopsys static timing (Motive) model

        -   Synopsys timing model

        -   Synopsys power model

        -   Cadence place-and-route abstract (LEF)

        -   Avant! place-and-route Frame view abstract

        -   GDSII

        -   Spice netlist for LVS

PARAMETERS & LIMITS

        -   Word widths: 16, 32, 64 or 128 bits with 8-bit byte enables

        -   Size: 4K, 8K, 16K, 32K, 64K, 128K, 256K, 512K, IM or 2M words
            provided total memory size is between 512K and 32M bits

        -   Pipeline or Flow-Through

        -   Late-write options (To be defined)

        -   Some aspect-ratio control (To be defined)

        -   BIST option (To be defined)

OTHER ITEMS

        -   Include Redundancy

        -   Include Scan support

                                      -6-
<PAGE>   7

        -   Define timing characterization process

        -   Define test silicon process

                                      -7-

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