Document:

Severance Agreement and General Release of all Claims

 Exhibit 10.2 
 SEVERANCE AGREEMENT 
 AND 
 GENERAL RELEASE OF ALL CLAIMS 
 This Severance Agreement and General Release of
all Claims (“Agreement”) is made by and between Stanley Kinsey (hereinafter “EMPLOYEE”), and NTN Communications, Inc. (“EMPLOYER”). 
 RECITALS 
 A. EMPLOYEE was employed by EMPLOYER from November, 1997 through July 7, 2006, the date such employment
was terminated (the “Effective Date”). 
 B. From time to time during his employment, EMPLOYER has granted to EMPLOYEE various stock options to
purchase shares of EMPLOYER’s common stock (“Common Stock”), which options were issued pursuant to EMPLOYER’S 1995 Stock Option Plan (“1995 Plan”) and 2005 Performance Incentive Plan (“2005 Plan”; the 1995
Plan and the 2005 Plan are sometimes collectively referred to herein as the “Plans”). 
 C. Since July 1, 2005, the terms of EMPLOYEE’s
employment by EMPLOYER has been as set forth in that certain Employment Agreement dated June 28, 2005 by and between EMPLOYEE and EMPLOYER (“Employment Agreement”). 
 D. Pursuant to the Employment Agreement and the Plans, EMPLOYEE is entitled to payment of certain amounts and certain rights with respect to such stock options following termination of his employment. 
 E. The parties wish to fully and finally settle all matters between them and, accordingly hereby enter into this Agreement. 
 NOW, THEREFORE, in consideration of the promises and mutual agreements hereinafter set forth, it is hereby agreed by and among the parties as follows: 
 1. PAYMENT 
 a. Final
Wages. On the Effective Date, EMPLOYER agrees to pay EMPLOYEE all normal payroll amounts owing to him through and including that date, plus all accrued and unused vacation pay benefits. In addition, on or before the Effective Date, EMPLOYER
agrees to pay EMPLOYEE his share of the 2005 Executive Bonus Pool, which the parties currently estimate to be approximately Five Thousand to Fifteen Thousand Dollars. In the event the Board does not approve the entire bonus payment, EMPLOYEE shall
be entitled to receive a pro rata portion of any bonus paid to the senior management team at a ratio equal to the plan’s original percentages. In addition, at any time and from time to time following the Effective Date, in order to validate the
calculations relating to his share of the 2005 Executive Bonus Pool, EMPLOYEE will have the right to audit EMPLOYER’S internal financial reports, at EMPLOYEE’S sole expense, provided EMPLOYEE provides reasonable advance notice and any such
audit 

  

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will be conducted at EMPLOYER’S place of business and during normal business hours. 
 b. Severance Wages. EMPLOYER agrees to pay EMPLOYEE the following as severance wages: 
 (1) The total sum of Three Hundred Ninety Four Thousand Dollars ($394,000.00); such payment will be made in accordance with EMPLOYER’s normal payroll
practices (less payroll withholdings for taxes and other amounts in accordance with federal and state law) payable in 26 equal biweekly increments of $15,153.85 each, commencing on the first pay date immediately subsequent to the eighth
(8th) day after EMPLOYEE’S execution of this Agreement with the first payment retroactive to the Effective Date, and continuing each consecutive pay date until such sum is paid in full. 
 c. Other Severance Benefits. In addition to the foregoing, and the benefits described in subpart d. below, EMPLOYER shall pay, at its sole expense
and at no cost to EMPLOYEE, and continue each of the following benefits in full force and effect for the twelve (12) month period immediately following the Effective Date: 
 (1) COBRA medical and dental premiums for EMPLOYEE and dependent coverage; 
 (2) Major medical insurance premiums with an annual cumulative deductible amount of no more than $500 for EMPLOYEE, his wife, if any, and those or his children who qualify as his dependents under Section 152 of
the Internal Revenue code of 1954, and 
 (3) Term life insurance on EMPLOYEE’s life, payable to his designated beneficiary, in the
amount of $1,000,000, and, in the event of accidental death or dismemberment, in the amount of $2,000,000; the premium relating to such coverage shall not exceed $4,000 per year. 
  

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 d. Stock Options. Further, EMPLOYER hereby certifies as being granted to, fully vested in and
exercisable by, EMPLOYEE, with Exercise Periods following EMPLOYEE’s termination of employment for each as noted below, the stock option grants to purchase shares of EMPLOYER’s common stock (“Common Stock”) set forth in Table
1.A. below, which grants were made pursuant to the Plans: 
 Table 1. A. 
  

											
	 Grant
	  	# Options	  	Granted	  	Price	  	Expire	  	 Exercise
 Period

	 A
	  	100,000	  	11/03/97	  	1.8750	  	11/02/07	  	2 years
	 B
	  	650,000	  	10/07/98	  	0.6250	  	10/06/08	  	3 years
	 C
	  	650,000	  	10/07/98	  	1.0000	  	10/06/08	  	3 years
	 D
	  	500,000	  	10/07/99	  	0.9800	  	10/06/09	  	3 years
	 E
	  	350,000	  	01/26/01	  	0.8750	  	01/25/11	  	3 years
	 F
	  	100,000	  	10/07/02	  	0.7500	  	10/05/12	  	3 years
	 G
	  	400,000	  	02/18/03	  	1.1000	  	02/17/13	  	3 years
	 H
	  	300,000	  	08/16/04	  	1.8600	  	08/15/14	  	3 years
	 I
	  	250,000	  	06/28/05	  	1.8800	  	06/27/15	  	3 years
		  	#DSUs	  		  		  		  	
		  	50,000	  	09/30/04	  	—  	  	09/29/14	  	

 The following terms shall apply to such stock options in addition to the terms set forth in the
Plans and the documents delivered pursuant thereto: 
 (1) Accelerated Vesting. EMPLOYEE shall be entitled to accelerated vesting in
full of Stock Option Grant I, as set forth in Table 1.A. above. 
 (2) Cashless Exercise. In accordance with the authority vested in
the Compensation Committee of the Board as Administrator of the Company’s stock option plans, the EMPLOYEE is granted both (a) the use of a cashless exercise program for any and all options , and (b) the use of Common Stock, acquired
through DSU’s or the cashless exercise of stock options, to pay to the Company any required withholding taxes that the Company is required to withhold. 
 Several forms of cashless exercise are allowed by the Plans with approval of the Administrator: accordingly, EMPLOYER hereby grants EMPLOYEE the right to use any form of cashless exercise permitted under applicable
law that generally follows the economic model in the following example: 
 In lieu of EMPLOYEE making a cash payment for any Common Stock he
may purchase upon exercise of any of the above Options, EMPLOYEE may, in his sole discretion, elect to convert all or any portion of any of such Options to shares of Common Stock of EMPLOYER by the surrender of the particular Option or portion
thereof in accordance with the provisions of the Plans, in exchange for a number of shares of Common Stock EMPLOYER determined in accordance with the following formula: 
 X = Y times (A minus B) 
                               A 
  

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 where X = the number of shares of Common Stock of EMPLOYER to be issued to EMPLOYEE pursuant to this
Section 1 
 Y = the number of shares of Common Stock of EMPLOYER that could be acquired upon a cash exercise of the portion of the
Option being surrendered (as adjusted to the date of calculation) 
 A = the closing sale price of one share of Common Stock of EMPLOYER
as of the end of the day immediately preceding the date of exercise 
 B = the then exercise price of one share of Common Stock per the
above TABLE1.A. 
 For example, if the EMPLOYEE requests to exercise 100,000 options with an exercise price of $1.00 and a closing sale price
on the day immediately preceding the date of exercise of $2.00, then the EMPLOYER would deliver to the EMPLOYEE 50,000 registered shares of Common Stock upon the surrender of the 100,000 stock options. 
 In addition, EMPLOYEE may also elect to have EMPLOYER withhold from the number of shares of Common Stock that would otherwise be delivered to the EMPLOYEE
by the EMPLOYER on exercise of the option, a number of shares of Common Stock equal in value to the aggregate withholding taxes applicable to such exercise. 
 By entering into this Agreement, EMPLOYER agrees that neither it, the Plan Committee nor the Plan Administrator may modify or terminate the terms of EMPLOYEE’S cashless exercise, or other rights with respect to
the stock options set forth herein, unless expressly required to do so by applicable law. 
 (3) Company Responsiveness to Option Exercise
Request. As long as EMPLOYEE’S broker initiates an exercise request according to electronic DWAC system requirements, the EMPLOYER will act on such request as if signed by the EMPLOYEE and electronically deliver to the EMPLOYEE the required
number of shares of Common Stock of the Company, either by standard exercise or cashless exercise, as the case may be, within 24 hours of each such request. 
 (4) Transferability of Options. Without limiting the applicability of any other provisions under the Plans, EMPLOYER confirms EMPLOYEE’S right to transfer the options, in the manner permitted under
Section 2.4 of the 1995 Plan. 
 e. Outplacement Services. EMPLOYEE to receive $5,000 for reimbursement of standard senior
executive outplacement service package or fees incurred in termination discussions. 
  

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 2 GENERAL RELEASE. 
 a. Release. In exchange for the foregoing consideration, EMPLOYEE and his heirs, assigns, executors, successors and each of them, hereby unconditionally, irrevocably and absolutely release and discharge
EMPLOYER and all of their agents, brokers, attorneys, insurers, trustees, employees, officers, directors, partners, shareholders, representatives, predecessors-in-interest, successors-in-interest and all related, subsidiary or affiliated persons or
entities (however described), (collectively, “Released Parties”) from any and all claims related in any way to the transactions, affairs or occurrences between them up to the date of this Agreement including, but not limited to, all
losses, liabilities, claims (for example: unpaid wages, benefits, vacation pay), charges, demands and causes of action, known or unknown, suspected or unsuspected, arising directly or indirectly out of or in any way connected with the facts or
circumstances arising from or out of his employment with EMPLOYER. 
 EMPLOYER will, and hereby does, forever release and discharge EMPLOYEE
from any and all causes of action, judgments, liens, indebtedness, damages, losses, claims, liabilities, and demands of every kind and character, or any other matter or event occurring, or to occur, including attorneys’ fees and costs, whether
or not previously brought before any state or federal court or before any state or federal or any other governmental agency. 
 EMPLOYEE
SPECIFICALLY AGREES AND ACKNOWLEDGES HE IS WAIVING ANY RIGHT TO RECOVERY AGAINST EMPLOYER BASED ON STATE OF FEDERAL AGE, SEX, PREGNANCY, RACE, COLOR, NATIONAL ORIGIN, MARITAL STATUS, RELIGION, SEXUAL ORIENTATION, VETERAN’S STATUS, DISABILITY,
PHYSICAL HANDICAP, MENTAL CONDITION, MEDICAL CONDITION, MENTAL HANDICAP OR OTHER ANTI-DISCRIMINATION LAWS, INCLUDING, WITHOUT LIMITATION, TITLE VII OF THE CIVIL RIGHTS ACT, THE AGE DISCRIMINATION IN EMPLOYMENT ACT, THE AMERICANS WITH DISABILITIES
ACT AND TITLE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, ALL AS AMENDED, WHETHER SUCH CLAIM IS BASED UPON ANY ACTION FILED BY EMPLOYEE OR BY A GOVERNMENTAL AGENCY. 
 b. Legal Counsel; Additional Facts. EMPLOYEE declares and represents that he is executing this Agreement with the opportunity to obtain full advice from legal counsel. EMPLOYEE further acknowledges that he may
discover facts or law different from, or in addition to, the facts or law that he knows or believes to be true with respect to the claims released in this Agreement, and agrees, nonetheless, that this Agreement and the release contained in it shall
be and shall remain effective in all aspects, notwithstanding such different or additional facts, or the discovery of them. 
  

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 c. Known and Unknown Claims. EMPLOYEE acknowledges that he is aware of and is familiar with the
provisions of Section 1542 of the California Civil Code, which provides as follows: 
 “A general release does not extend to claims
which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him, must have materially affected his settlement with the debtor.” 
 EMPLOYEE does, after opportunity to obtain independent advice of counsel, hereby waive and relinquish all rights and benefits he may have under
Section 1542 of the California Civil Code, or the law of any other state or jurisdiction, or common law principle, to the same or similar effect. 
 d. Agreement Not to Sue. EMPLOYEE irrevocably and absolutely agrees that he will neither prosecute nor allow to be prosecuted on his behalf, in any administrative agency, whether federal or state, or in any
court, whether federal or state, any claim or demand of any type related to the matter released in Section 2.a. above, it being the intention of all parties that with the execution of this Agreement, EMPLOYER and alt Released Parties will be
absolutely, unconditionally and forever discharged of and from all obligations to or on behalf of EMPLOYEE related in any way to his employment with EMPLOYER or otherwise up to and including the date of this Agreement. 
 3. TWENTY-ONE DAY WAITING PERIOD. EMPLOYEE understands that he has been given a period of 21 days to review and consider this Agreement before
signing it. EMPLOYEE further understands that he may use as much of this 21-day period as he wishes prior to signing it. 
 4.
REVOCATION. EMPLOYEE may revoke this Agreement within seven days of signing it. Revocation can be made by delivering a written notice of revocation to Gary Arlen, Chairman of the Compensation Committee of the Board of Directors, NTN Buzztime,
Inc., 5966 La Place Court, Carlsbad, California 92008. For this revocation to be effective, written notice must be received by no later than the close of business on the seventh day after he signs this Agreement. If EMPLOYEE revokes this Agreement,
it shall not be effective or enforceable and EMPLOYEE will not receive the benefits described in Section I other than those to which he is otherwise contractually entitled. If EMPLOYEE does not revoke this Agreement, its effective date shall be the
eighth day after the date of his signature. 
 5. FUTURE COMMUNICATIONS. The terms and conditions of this Agreement shall remain
confidential between the parties hereto, and the parties agree not to disclose any information concerning the fact, the amount, terms or conditions of this Agreement to any third party. Nothing contained in this Agreement, however, shall be
construed to prevent the parties from disclosing the terms hereof to individuals or agencies to whom disclosure is required to fulfill the terms of this Agreement including his or its attorneys or accountants or as otherwise required by law. In
addition, nothing herein shall preclude either party from complying with any legal process that can compel a disclosure of all terms of this Agreement or from discussing the Agreement with his or its attorney, 
  

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accountant or his immediate family, as long as such party clearly advises any such individual that all information regarding the terms of the Agreement is
disclosed in strict confidence and must not be repeated or disclosed to others. 
 Notwithstanding the foregoing, EMPLOYEE agrees that EMPLOYER, and any of
its officers, directors, employees and agents, shall be permitted to make any public or private, written or oral communication, which shall state, in principle, as follows: 
 a) If made regarding EMPLOYEE’S separation from the Company: 
 “EMPLOYEE notified the Board of Directors in
December 2005 that he would not renew his employment contract and urged the Board to seek a successor to replace him. A new CEO was put in place about three months after his notification.” 
 b) If made regarding any question pertaining to whether the EMPLOYEE was terminated by the Company: 
 “EMPLOYEE was not terminated by the Company. Employee notified the Board of Directors in December 2005 that he would not renew his employment contract and urged the Board to seek a successor to replace him.
A new CEO was put in place about three months after his notification.” 
 If EMPLOYEE violates the provisions of this Section 5,
EMPLOYEE’S right to exercise any of the stock options accelerated in accordance with Section 1 hereof remaining unexercised at the time of such violation shall expire. 
 If EMPLOYER, or any of its officers, directors, employees or agents, violates the provisions of this Section 5 including, without limitation, if any such person makes any communication not substantially the same
as the responses presented above, which communication is made to any third party including, without limitation, the press or media, in any investor presentation, or in any written press release or presentation, EMPLOYER agrees that it has violated
this confidentiality provision and EMPLOYER hereby acknowledges that damages have been incurred by the EMPLOYEE as a result of this, the exact amount of such damages shall be subject to proof at the time of trial. Without limiting the generality of
Section 7.d. hereof relating to the award of attorneys fees and costs, the parties agree that the provisions of that section shall be applicable to any action for breach of this Section 5. 
 6. COMPANY PROPERTY. EMPLOYER also transferred all right, title and interest in the following Company property to EMPLOYEE effective upon termination of
employment: 
 EMPLOYEE contacts in Outlook; 
 Treo 650 cellular telephone; and 
 HP TC1100 tablet PC. 
 EMPLOYEE is to receive the full cooperation of EMPLOYER in transferring contact names, historic calendar information and task list information, and forwarding personal
e-mail, to his personal desktop system within 30 days following the Effective Date. EMPLOYER will allow EMPLOYEE to send and e-mail notification to all of his 

  

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Microsoft Outlook® contacts informing them of EMPLOYEE’S new e-mail address for future correspondence. EMPLOYER will also designate an executive assistant to scan any e-mails addressed to
EMPLOYEE’S e-mail account at EMPLOYER during the six (6) month period following the Effective Date, and promptly forward any and all personal e-mails to such e-mail address as EMPLOYEE may designate during that period. 
 7. GENERAL PROVISIONS. 
 a. Binding Effect. The provisions of this Agreement shall inure to the benefit of and be binding upon the successors, assigns, heirs, administrators and executors of the parties hereto. 
 b. Freely Entering Agreement. EMPLOYEE is fully competent as of the date hereof, and this Agreement has been freely executed and entered into by
EMPLOYEE without duress or any imbalance in bargaining position, and in determining to execute and enter into this Agreement, EMPLOYEE has relied, among other things, on the opportunity to obtain advice of independent legal counsel of his own
selection. 
 c. Full Opportunity to Review. This Agreement has been reviewed by the parties hereto and their respective attorneys, and
the parties have had a full opportunity to negotiate the contents hereof. The parties hereto expressly waive any common law or statutory rule of construction that ambiguity shall be construed against the drafter of this Agreement, and acknowledge
that for purposes of any such rule all parties contributed equally to the drafting of this Agreement. 
 d. Prevailing Party. In any
action at law or equity between the parties seeking enforcement of any of the terms and provisions of this Agreement, the prevailing party in such action shall be awarded, in addition to damages or other relief, its reasonable costs and expenses,
including, but not limited to, taxable costs and reasonable attorneys’ fees. Such recovery shall also include out-of-pocket expenses and attorneys fees on appeal, if any. The court shall determine the prevailing party, unless the parties can
resolve the matters between themselves. 
 e. No Waiver. No waiver by any party hereto of any breach of this Agreement by any other
party shall operate or be construed as a waiver of any other or subsequent breach. No waiver by any party hereto of any breach of this Agreement by any other party hereto shall be effective unless it is in writing and signed by the party claimed to
have waived such breach. 
 f. Amendment. This Agreement (and provisions) may be amended only by a written instrument executed by all
parties hereto. 
 g. Further Assurances. The parties agree to do all things necessary and to execute all further documents necessary
and appropriate to carry out and effectuate the terms and purposes of this Agreement. 
  

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 h. Entire Agreement. It is agreed that, except as otherwise provided herein, there are no
collateral agreements or representations, written or oral, that are not contained in this Agreement. Rather, this Agreement is intended by all parties to be fully integrated and contains the entire agreement between the parties. 
 i. Severability. Should it be determined by a court that any term of this Agreement is unenforceable, that term shall be deemed to be deleted.
However, the validity and enforceability of the remaining terms shall not be affected by the deletion of the unenforceable term. 
 j.
Applicable Law/Venue. The validity, interpretation and performance of this Agreement shall be construed and interpreted according to the laws of the State of California. The parties further agree that if any party hereto commences litigation
to enforce or interpret his/its rights hereunder, such litigation shall take place only in an appropriate court in San Diego County, and not elsewhere. To effectuate this provision, each party hereby consents to the jurisdiction of the California
courts located in the county of San Diego. 
 k. Counterparts. This Agreement may be executed in counterparts and when signed by all
parties hereto shall constitute one single document. 
 The parties to this Agreement, with the benefit of representation and advice of
counsel, have read the foregoing Agreement, and fully understand each and every provision contained herein. 
 WHEREFORE, the parties have executed this
Agreement on the dates shown below. 
  

									
			
		 		 	 /s/ STANLEY B. KINSEY

		 		 		 	 STANLEY B. KINSEY

			
		 		 	 NTN BUZZTIME, INC.

					
		 		 		 	 By:
	 	 /s/ Gary Arlen

		 		 		 		 	 Gary Arlen

				
		 		 	 By:
	 	 /s/ Barry Bergsman

		 		 		 		 	 Barry Bergsman

  

 9Patent License Agreement

 EXHIBIT 10.85 
 PROPRIETARY INFORMATION 
 CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND

 FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION 
 TDMA PATENT LICENSE AGREEMENT 
 BETWEEN 
 INTERDIGITAL TECHNOLOGY CORPORATION 
 AND 
 SAMSUNG ELECTRONICS CO., LTD. 

 PROPRIETARY INFORMATION 
  

 TABLE OF CONTENTS 
  

					
	  	 	 	  	 Page

	ARTICLE 1 - DEFINITIONS	  	1
			
	        1.1.	 	Definitions	  	1
		
	ARTICLE 2 - LICENSE GRANT	  	1
			
	        2.1.	 	ITC License Grant	  	1
	        2.2.	 	Limitations on License Grant	  	1
	        2.3.	 	General Limitations on License Grants	  	2
		
	ARTICLE 3 - WARRANTIES	  	2
			
	        3.1.	 	Mutual Warranties	  	2
	        3.2.	 	ITC Warranties	  	3
	        3.3.	 	Limitation of Liability	  	3
	        3.4.	 	Limitation of Warranties	  	3
		
	ARTICLE 4 - ADDITIONAL COVERED STANDARDS	  	3
			
	        4.1.	 	Right to Designate	  	3
	        4.2.	 	Objection to Additional Designation	  	3
	        4.3.	 	Royalty Rates	  	3
	        4.4.	 	Effect on Advance Payment Amount	  	3
	        4.5.	 	No Stacking of Royalties	  	4
		
	ARTICLE 5 - TERM; TERMINATION	  	4
			
	        5.1.	 	Term	  	4
	        5.2.	 	Termination.	  	4
		
	ARTICLE 6 - PAYMENT OF LICENSE FEES	  	4
			
	        6.1.	 	Royalty Rate	  	4
	        6.2.	 	Cap on Royalties.	  	5
	        6.3.	 	[***]	  	5
	        6.4.	 	No Stacking	  	6
	        6.5.	 	Pending Applications	  	6
		
	ARTICLE 7 - WIRELESS LOCAL LOOP SUBSCRIBER UNITS	  	6
			
	        7.1.	 	ITC Option	  	6
	        7.2.	 	Cross License	  	6
		
	ARTICLE 8 - ADJUSTMENTS TO ROYALTIES	  	6
			
	        8.1.	 	Adjustment Meeting	  	6

	***	Confidential material which has been omitted and filed separately with the Securities and Exchange Commission. 

  

 -i- 

 PROPRIETARY INFORMATION 
  

					
	        8.2.	 	Adjustment Effective Date	  	6
	        8.3.	 	Effect on Advance Payment Amount	  	6
	        8.4.	 	Manner of Application	  	7
	        8.5.	 	Notice	  	7
		
	ARTICLE 9 - PAYMENTS	  	8
			
	        9.1.	 	Reports; Timing	  	8
	        9.2.	 	No Set Off	  	8
		
	ARTICLE 10 - CROSS-LICENSES	  	8
			
	        10.1.	 	SEC License Grant	  	8
	        10.2.	 	Additional Patent Licenses	  	8
		
	ARTICLE 11 - ADVANCE PAYMENT	  	9
		
	ARTICLE 12 - MISCELLANEOUS	  	9
			
	        12.1.	 	Incorporation by Reference	  	9
	        12.2.	 	Affixation	  	9
	        12.3.	 	Limitation on Actions	  	10
	        12.4.	 	Litigation	  	10
	        12.5.	 	Reports Until Advance Payment Amount Exhausted	  	10

  

 -ii- 

 PROPRIETARY INFORMATION 
  

			
	Exhibit A	  	List of Licensed Patents
		
	Schedule 1	  	Application of Advance Payment

  

 -iii- 

 PROPRIETARY INFORMATION 
  

 PATENT LICENSE AGREEMENT 
 THIS AGREEMENT is entered into as of the date each party hereto has fully executed this Agreement, by and between InterDigital Technology Corporation, a Delaware corporation with offices at 900 Market Street,
Second Floor, Wilmington, DE 19801 (“ITC”), and Samsung Electronics Co., Ltd., a corporation existing under the laws of the Republic of Korea with offices at Samsung Main Building, 250, 2-Ka, Taepyung-Ro, Chung-Ku, Seoul, Korea 100-742
(“SEC”). 
 Background 
 ITC owns an international portfolio of patents that relate to digital wireless communications systems. SEC is in the business of manufacturing and selling digital wireless communications systems and desire licenses under the ITC patents to
make, use and sell digital wireless infrastructure equipment and subscriber units on the terms and conditions set forth herein. SEC and ITC, along with InterDigital Communications Corporation (“IDC” and, together with ITC,
“InterDigital”), desire to enter into the other Related Agreements and in consideration of the terms and conditions contained herein and in the other Related Agreements, the parties hereto agree to the following terms and conditions:

 NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto, intending to be legally bound, agree as follows:

 ARTICLE 1 - DEFINITIONS 
  

	1.1.	Definitions. As used herein, the “Master Agreement” means the agreement entitled “Master Agreement” between and among SEC, IDC and ITC of even date
herewith, and the Related Agreements mean the agreements required to be executed pursuant to the Master Agreement. As used herein, the terms in Exhibit A of the Master Agreement, when used with initial capital letters in this Agreement,
including any Exhibits, attachments or amendments, shall have the meanings described in Exhibit A of the Master Agreement. 

 ARTICLE 2 - LICENSE GRANT 
  

	2.1.	ITC License Grant. ITC grants to the SEC Group a non-exclusive, worldwide, royalty bearing, perpetual license for the life of and under the Licensed Patents, including the
Patents listed in Exhibit A hereto, to make, have made, use, sell, lease or otherwise dispose of Covered TDMA Subscriber Units, Covered TDMA Infrastructure Units and components and subassemblies intended for use with Covered TDMA Subscriber
Units and/or Covered TDMA Infrastructure Units. 

 PROPRIETARY INFORMATION 
  

	2.2.	Limitations on License Grant. The license grant of Paragraph 2.1 is subject to the following limitations: 

  

	 	2.2.1.	Third party purchasers of Covered Subscriber or Covered Infrastructure Units purchased directly or indirectly from SEC shall have the right to use and sell such purchased products
for their normal or expected uses without obligation under patents to ITC or its Affiliates. 

  

	 	2.2.2.	Notwithstanding the terms of Section 2.2.1, no license is granted by estoppel or implication to any third party customer of Covered Subscriber Units to make, use or sell
Infrastructure Equipment, and no license is granted by estoppel or implication to any third party customer of Covered Infrastructure Units to make, use or sell Subscriber Units, and any claims that ITC may have against a third party manufacturer of
Subscriber Units that the use of such Subscriber Units with Infrastructure Equipment licensed under this Agreement contributorily infringe or induce the infringement of any claims of any of the Licensed Patents are expressly reserved by ITC.

  

	 	2.2.3.	Notwithstanding the terms of Section 2.2.2, in no event shall SEC be held liable for contributory infringement or inducing infringement (or under any similar theory of
liability), based on the uses made of Covered Subscriber Units or Covered Infrastructure Units by direct or indirect purchasers, regardless of the manner in which such Covered Subscriber Units or Covered Infrastructure Units are sold, marketed or
promoted by SEC. 

  

	2.3.	General Limitations on License Grants. Nothing in this Agreement shall be construed as: 

  

	 	(i)	requiring the maintenance of the Licensed Patents; 

  

	 	(ii)	a warranty as to the validity or scope of the Licensed Patents; 

  

	 	(iii)	a warranty or representation that any product will be free from infringement of patents of third parties; 

  

	 	(iv)	an agreement to bring or prosecute actions against third party infringers of the Licensed Patents provided, that ITC, in determining whether to bring or prosecute actions against
third party infringers, shall act in a commercially reasonable manner in light of the parties’ mutual interest in protecting the value of the Licensed Patents; or 

  

	 	(v)	conferring any license or right under any patent other than the Licensed Patents. 

 ARTICLE 3 - WARRANTIES 
  

	3.1.	Mutual Warranties. Each party represents and warrants that it has the right and authority to enter into this Agreement. 

  

 -2- 

 PROPRIETARY INFORMATION 
  

	3.2.	ITC Warranties. ITC represents and warrants that: 

  

	 	3.2.1.	it owns the patents that it is licensing hereunder; and 

  

	 	3.2.2.	it has the right and authority to convey the rights that it is granting hereunder. 

  

	3.3.	Limitation of Liability. Neither of the parties hereto shall be liable to the other party in tort, contract or otherwise for any consequential, incidental, exemplary,
punitive, indirect or special damages of any kind, including, but not by way of limitation, damages for loss of profit by ITC or SEC, even if the possibility of such damages was disclosed to, or could reasonably have been foreseen, by the injuring
party. 

  

	3.4.	Limitation of Warranties. THE PARTIES MAKE NO WARRANTIES EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE, OTHER THAN THE WARRANTIES SET FORTH IN THIS ARTICLE . 

 ARTICLE 4 - ADDITIONAL COVERED STANDARDS

  

	4.1.	Right to Designate. ITC and SEC shall each have the right to designate additional standards (including, without limitation, SEC product architectures, even if such
architectures are not the subject of an industry standard) as candidates for adoption as Covered Standards, by giving written notice to the other. Any such designation shall include a full description of the standard, and a list of those patent
claims which are deemed to cover the use and operation of SEC’s products in conformity with that standard. 

  

	4.2.	Objection to Additional Designation. If candidates for adoption as additional Covered Standards are designated by ITC, SEC shall retain the right to object to such
designation on the ground that such candidate is not a Covered Standard. If the parties are unable to reach agreement on this issue, this dispute will be resolved under the dispute resolution provisions of Article 5 of the Master Agreement.

  

	4.3.	Royalty Rates. If a candidate for adoption as an additional Covered Standard is adopted as such, either by agreement of the parties or through the dispute resolution process,
the parties shall enter into good faith negotiations to determine an appropriate royalty applicable to Covered Subscriber Units or Covered Infrastructure Units which comply with such additional Covered Standard. Such negotiations shall take into
consideration the Manufacturer’s Average Selling Price of such product, the Licensed Patents covering such product and the royalty rates and terms contained herein. 

  

	4.4.	Effect on Advance Payment Amount. In the event that an additional Covered Standard is adopted prior to the exhaustion of prepaid royalties, SEC shall have the option to apply
prepaid royalties towards products compliant with such additional Covered Standard. Such prepaid royalties will be applied at a rate consistent with the ratio between the royalty rate applicable to already covered products and the royalty rate
applicable to newly covered products. 

  

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 PROPRIETARY INFORMATION 
  

	4.5.	No Stacking of Royalties. [***].

 ARTICLE 5 - TERM; TERMINATION 
  

	5.1.	Term. The term of this Agreement shall commence on the Effective Date and terminate upon the last-to-expire of the Licensed Patent applicable to any Covered Standard, unless
sooner terminated as provided herein. 

  

	5.2.	Termination. 

  

	 	5.2.1.	Without limitation of the rights and remedies available to the invoking Party, this Agreement may be terminated for cause in accordance with the terms set forth in Section 8.5
of the Master Agreement. 

  

	 	5.2.2.	After payment in full of all amounts due under Article 11 of this Agreement, this Agreement may thereafter be terminated without cause by SEC upon written notice to ITC on thirty
(30) days prior written notice, or at any time after the expiration, unenforceability, determination by SEC of non-use, or invalidation of any of the Licensed Patents; provided, however, upon such termination, ITC shall have the right to take
any action that it deems appropriate to collect royalties on products manufactured by SEC before termination but for which royalties hereunder were not paid. 

  

	 	5.2.3.	Upon termination of this Agreement, SEC’s licenses with respect to all of the Licensed Patents shall cease and SEC shall have no further right or license with respect to the
Licensed Patents, except that so long as Section 3.3 of the UltraPhone Technology Transfer and Repurchase Agreement remains in effect SEC shall be deemed to hold a license to the Licensed Patents that is coextensive with the license granted by
such Section 3.3. 

 ARTICLE 6 - PAYMENT OF LICENSE FEES 
  

	6.1.	Royalty Rate. SEC shall pay royalties to ITC on each sale (exclusive of returns and credits) of a Covered Subscriber Unit or a Covered Infrastructure Unit as follows:

  

			
	Cellular Unit handsets	  	Sold Prior to December 31, 1995 – [***];thereafter
		  	Sold Prior to December 31, 1996 – [***];
		  	Sold thereafter – [***]
	PHS/DCS Limited Units:	  	Sold Prior to December 31, 1995 – [***]
		  	Sold Prior to December 31, 1996 – [***]
		  	Sold thereafter – [***]
	Covered Infrastructure Units:	  	[***] of Covered Infrastructure Equipment

	***	Confidential material which has been omitted and filed separately with the Securities and Exchange Commission. 

  

 -4- 

 PROPRIETARY INFORMATION 
  

	6.2.	Cap on Royalties. 

  

	 	6.2.1.	The royalty rates set forth in Section 6.1 above for Cellular Units and PHS/DCS Limited Units are not intended to exceed [***] for the applicable type of Covered Subscriber
Units. SEC shall have the option of providing ITC with information sufficient to determine [***] for each model of Covered Subscriber Unit. If the royalty provided for under this Agreement exceeds [***] for a model of Covered Subscriber Unit, the
royalty associated with such model of Covered Subscriber Units shall thereafter be reduced to [***] for such Covered Subscriber Units. In each succeeding year, SEC shall provide ITC with sufficient information to determine the [***] of any Covered
Subscriber Units for which the royalty has been reduced as described in this section, and the royalty for such Covered Subscriber Units shall be adjusted to take into account any subsequent price changes, with such royalty always to be maintained at
the [***] 

  

	 	6.2.2.	If required for purposes of Section 6.2.1 above, SEC shall make sufficient information available to ITC to enable it to independently verify the [***]. If such information is
not available, the parties shall jointly determine a temporary [***] to be used for one calendar quarter until an actual average [***] can be determined as provided for in this section. ITC shall hold in confidence all [***]supporting information
provided under this Agreement. 

  

	6.3.	[***] For purposes of the calculation of royalties under this Agreement, the manufacture, sale, lease and/or use of a Covered Subscriber Unit or Covered Infrastructure Unit
shall apply only to the applicable running royalties of Section 6.1 and/or the application of the Advance Payment Amount under Article 11 if manufactured, used, sold or leased in [***]. At the adjustment meetings provided for in
Section 8.1 hereof, if requested by SEC, the parties shall consider whether and which Covered Subscriber Units or Covered Infrastructure Units of Licensee are [***]. Nothing herein shall be construed as affecting in any manner the territorial
scope of the license set forth in Article 2, above. 

  

	***	Confidential material which has been omitted and filed separately with the Securities and Exchange Commission. 

  

 -5- 

 PROPRIETARY INFORMATION 
  

	6.4.	No Stacking. [***] based on any Covered Subscriber Unit or Covered Infrastructure Unit. [***] a Covered Subscriber Unit or a Covered Infrastructure Unit [***]. In the event
the relevant product is a Covered Subscriber Unit [***] for such Covered Subscriber Unit. 

  

	6.5.	Pending Applications. Any royalties payable on a published application shall be paid [***]. 

 ARTICLE 7 - WIRELESS LOCAL LOOP SUBSCRIBER UNITS 
  

	7.1.	ITC Option. If SEC makes, uses or sells Covered Subscriber Units which are Wireless Local Loop Subscriber Units, ITC shall have the option of (1) treating such Wireless
Local Loop Subscriber Units the same as other Covered Subscriber Units for royalty purposes or (2) imposing a royalty on such Wireless Local Loop Subscriber Units of [***] for each model of Wireless Local Loop Subscriber Unit. 

  

	7.2.	Cross License. In the event that ITC elects to impose a royalty on Wireless Local Loop Subscriber Units (other than pursuant to the UltraPhone Technology Transfer and
Repurchase Agreement) which is greater than the royalty which would otherwise be payable on such units as Covered Subscriber Units, SEC shall have the option of terminating the royalty-free license which is granted pursuant to 10.1 hereof. In such
an event, the parties shall negotiate a cross-license, with or without royalties, as appropriate, for Wireless Local Loop Subscriber Units and UltraPhone products. Such cross-license may include a modification of the royalty rate which would be
otherwise payable by SEC on Wireless Local Loop Subscriber Units (other than pursuant to the UltraPhone Technology Transfer and Repurchase Agreement), and may include the payment of royalties by ITC or its Affiliates on UltraPhone sales.

 ARTICLE 8 - ADJUSTMENTS TO ROYALTIES 
  

	8.1.	Adjustment Meeting. If requested by either party, the parties shall meet not more than annually during the term of this Agreement to discuss possible adjustments to royalties
payable under this Agreement. Such adjustments may take the form of credits for additional units under the Advance Payment Amount, or an adjustment of the running royalty rate, or both. Adjustment meetings shall take place during the first calendar
quarter of each year and shall alternate between Wilmington, Delaware, USA and Seoul, Korea. 

  

	8.2.	Adjustment Effective Date. Any adjustment pursuant to this Article 8 shall be effective on the date of the event giving rise to the right to have such an adjustment.

  

	8.3.	Effect on Advance Payment Amount. If SEC is entitled to an adjustment of royalties as a result of the operation of this Article, and SEC has at the time of such

  

	***	Confidential material which has been omitted and filed separately with the Securities and Exchange Commission. 

  

 -6- 

 PROPRIETARY INFORMATION 
  

 entitlement not utilized all of the Advance Payment Amount, SEC shall receive a credit of additional
Cellular Units and/or Covered Infrastructure Units which shall be determined pursuant to good faith negotiations between the parties. A credit under the Advance Payment Amount will not preclude an additional adjustment of the running royalty rate. A
credit under the Advance Payment Amount will take into account a reasonable interest rate under the circumstances used for purposes of computing present value. 
  

	8.4.	Manner of Application. Adjustments shall be made on a country by country and product by product basis under any of the following circumstances by the parties’ agreement:

  

	 	8.4.1.	[***] a judgment of any court, arbitrator or government agency of competent jurisdiction. In such case, the difference between the royalty provided for herein or otherwise
previously determined under this Agreement and the adjusted royalty shall be retained by SEC unless an appeal or settlement results in such a judgment being reversed or vacated. In such case, the amount held back by SEC shall be paid to ITC within
forty five (45) days of receipt of notice together with substantiating material. 

  

	 	8.4.2.	[***] Licensed Patent. 

  

	 	8.4.3.	[***] of ITC’s identification of such application as a Licensed Patent, or the issuance of a patent from such application with [***]. 

  

	 	8.4.4.	In the event of the entry of any license, agreement, [***] pursuant to which a third party obtains the right [***] under Licensed Patents for the manufacture, use or sale of Covered
Subscriber Units or Covered Infrastructure Units, the royalty rates under this Agreement shall be reduced by an amount appropriate [***] with said third party regarding the Licensed Patents with respect to [***]. In evaluating whether SEC is
entitled to any reduction in royalty fees under these provisions for most favored licensee treatment, [***] will be taken into account. For purposes of this section, Covered Subscriber Units shall be deemed to be equivalent to products manufactured
by third parties which are designed to operate in accordance with the same Covered Standards as particular Covered Subscriber Units. This section shall not apply to license agreements executed prior to the Effective Date. Any adjustment under this
section will take into account the [***]. 

  

	8.5.	Notice. ITC shall be required to promptly inform SEC of any event which might give rise to an adjustment under this Article 8. Without limiting the foregoing, in the event of
an agreement [***] or the like affecting the Licensed Patents, ITC shall 

  

	***	Confidential material which has been omitted and filed separately with the Securities and Exchange Commission. 

  

 -7- 

 PROPRIETARY INFORMATION 
  

 promptly provide SEC (or, in the event disclosure to SEC is prohibited, SEC’s outside counsel
subject to suitable confidentiality requirements) with a copy of the applicable sections of the relevant documents. 
 ARTICLE 9 -
PAYMENTS 
  

	9.1.	Reports; Timing. SEC, on or before each March 1 and September 1, shall submit a written report setting forth the quantity of each type of Covered Subscriber Unit
and Covered Infrastructure Unit sold during the six-month period ending on the preceding December 31 and June 30, respectively, together with such additional information as ITC may reasonably require to verify the calculation of royalties
payable hereunder in respect of such six month period for units which are subject to royalty percentages. Such report shall be accompanied by payment in full of any royalties accruing in respect of the reporting period. 

  

	 	9.1.1.	All reports required under this section will be certified to be complete and accurate by a senior financial officer of SEC. 

  

	 	9.1.2.	All information contained in any reports furnished under this section shall be held in confidence by ITC. 

  

	9.2.	No Set Off. SEC agrees and acknowledges that it has no right to, and shall not, attempt to set off amounts claimed to be owed based on any claim that it has or may have in
the future against ITC or IDC or their respective Affiliates against amounts owed under this Agreement. 

 ARTICLE 10 -
CROSS-LICENSES 
  

	10.1.	SEC License Grant. SEC hereby grants to ITC and IDC a non-exclusive, worldwide, perpetual, royalty free, license under the SEC Group Patents, such license authorizing ITC and
IDC to manufacture, use or sell any digital wireless telecommunications products [***]. 

  

	10.2.	Additional Patent Licenses. With respect to any patents relating to digital wireless telephone systems owned by SEC, ITC or IDC, or any of their respective Affiliates, which
patents are not otherwise licensed under this Agreement, the owning party agrees to negotiate a reasonable license to make, have made, use, sell, lease and/or otherwise distribute Subscriber Units and Infrastructure Equipment on reasonable terms and
conditions, taking into consideration the nature of the patent and the overall importance of the patent to the product. 

  

	***	Confidential material which has been omitted and filed separately with the Securities and Exchange Commission. 

  

 -8- 

 PROPRIETARY INFORMATION 
  

 ARTICLE 11 - ADVANCE PAYMENT 
  

	11.1.	SEC, as a material inducement for ITC to enter into this Agreement, the Master Agreement and the other Related Agreements, and to grant the license hereunder effective on and as of
the Effective Date, shall on or before June 15, 1996, make an advance payment of royalties in an amount equal to Fourteen Million Dollars ($14,000,000) (the “Advance Payment Amount”). The promise to pay the Advance Payment Amount
shall be deemed an unconditional, irrevocable promise to pay for the license granted under Article 2 hereof, and shall be applied against SEC’s royalty obligation hereunder in accordance with the table appearing as Schedule 1 ;in the
event the gross amount reflected as per unit royalty obligation on Schedule 1 (e.g. “No advance”) is reduced as a result of the operation of Section 6.2.1 of this Agreement, then all corresponding net amounts on Schedule
1 (e.g. calculated “with advance”) shall be reduced pro-rata. 

  

	11.2.	In the event SEC prior to the termination of this Agreement fails to apply the entire Advance Payment Amount as contemplated by this article, SEC shall be entitled to apply the
remainder against royalties accruing pursuant to another Related Agreement on a dollar-for-dollar basis without discount or other reduction. In the event SEC prior to the termination of this Agreement has applied the entire Advance Payment Amount as
contemplated by this article, the royalty rate shall revert to the full rate specified by Section 6.1 of this Agreement. 

  

	11.3.	At SEC’s request made before SEC has applied the full amount of the Advance Payment Amount as contemplated by this Article, the parties will negotiate in good faith the terms
by which SEC shall be entitled to make a further advance payment, which negotiations shall determine the appropriate discount rate and interest rate in light of then-prevailing market conditions. 

 ARTICLE 12 - MISCELLANEOUS 
  

	12.1.	Incorporation by Reference. All of the terms and conditions in the Master Agreement are hereby incorporated by reference. 

  

	12.2.	Affixation. If SEC affixes a patent notice to any Covered TDMA Subscriber Units or Covered TDMA Infrastructure Units [***], it shall [***] affix to such Covered TDMA Subscriber Units or Covered TDMA Infrastructure Units a similar notice with respect to the Licensed Patents
([***]) as reasonably designated by ITC. 

  

	***	Confidential material which has been omitted and filed separately with the Securities and Exchange Commission. 

  

 -9- 

 PROPRIETARY INFORMATION 
  

	12.3.	Limitation on Actions. During the term of this Agreement, if the SEC Group institutes or actively participates as an adverse party in, or otherwise provides material support
to, unless SEC is required by law to do so by any juridical or other governmental authority, any legal action anywhere in the world, the purpose of which is to invalidate or limit the validity or scope of the Licensed Patents, ITC shall have the
right to consider such action as a material breach of this Agreement. 

  

	12.4.	Litigation. SEC shall provide notice to ITC (including copies of relevant documents) of any discovery proceedings for which it receives a subpoena, voluntary discovery
requests, interrogatories or deposition notice or similar notices or requests associated with litigation concerning the validity or scope of Licensed Patents (“Litigation Materials”). SEC shall consult and cooperate with ITC in formulating
any response. If documents or oral statements similar in kind to those which would be produced under Litigation Materials are intended to be voluntarily provided to any party with an adverse interest to ITC, SEC shall first consult with ITC.

  

	12.5.	Reports Until Advance Payment Amount Exhausted. Until the exhaustion of the Advance Payment Amount, SEC shall provide to ITC an annual written report, setting forth the
quantity of sales of each type of Covered Subscriber Unit and the number of Covered Infrastructure Units sold during such year, to the extent reasonably necessary for calculation of the amount of the prepayment applied to royalties under this
Agreement. 

  

 -10- 

 PROPRIETARY INFORMATION 
  

 IN WITNESS WHEREOF, the parties have executed this Agreement by their duly
authorized representatives. 
  

			
	INTERDIGITAL TECHNOLOGY CORPORATION
		
	By:	 	 /s/

	Name:	 	Howard E. Goldberg
	Title:	 	Attorney in Fact
	Date:	 	December 29, 1995
		
	By:	 	 /s/

	Name:	 	William J. Burns
	Title:	 	Chief Executive Officer
	Date:	 	
	
	SAMSUNG ELECTRONICS CO., LTD.
		
	By:	 	 /s/

	Name:	 	Young Man Ji
	Title:	 	Senior Manager
	Date:	 	December 29, 1995
		
	By:	 	 /s/

	Name:	 	Ki Tae Lee
	Title:	 	Executive Managing Director
	Date:	 	January 22, 1996
		
	By:	 	 /s/

	Name:	 	Yong Bok Lee
	Title:	 	Executive Managing Director
	Date:	 	January 22, 1996

  

 -11- 

 PROPRIETARY INFORMATION 
  

 InterDigital Communications Corporation hereby acknowledges, accepts and agrees to be bound by Section 7.2 and
Article 10 hereof. 
  

			
	INTERDIGITAL COMMUNICATIONS CORPORATION
		
	By:	 	 /s/

	Name:	 	Howard E. Goldberg
	Title:	 	Executive Vice President
	Date:	 	December 29, 1995
		
	By:	 	 /s/

	Name:	 	William J. Burns
	Title:	 	Chief Executive Officer
	Date:	 	January 22, 1996

  

 -12-

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