Document:

THIS AGREEMENT, made and entered into this        5          day of

June    , 1995 by and between SEIKO EPSON CORPORATION, a corporation duly

organized and existing under the laws of Japan, having its principal place of

business at 3-5, Owa 3-chome, S

* Omitted and filed seperately with the SEC

pursuant to a confidential treatment request.

 

AMENDMENT TO ADVANCE PRODUCTION PAYMENT

AGREEMENT

 

 

THIS AMENDMENT TO

THE ADVANCE PAYMENT AGREEMENT of March 17, 1997 (this “Amendment”), is entered

into this 21st day of December, 2001, by and among SEIKO EPSON CORPORATION, a

Japanese corporation having its principal place of business at 3-5, Owa

3-chome, Suwa-shi, Nagano-ken 392, Japan (“Epson”), EPSON ELECTRONICS AMERICA,

INCORPORATED (formerly known as S MOS Systems Inc.), a California corporation,

having a place of business at 150 River Oaks Parkway, San Jose, CA

95134-1951,U.S.A. (“EEA”) and Lattice Semiconductor Corporation, a Delaware

corporation, having a place of business at 5555 N.E. Moore Ct., Hillsboro, Oregon

97124-6421, U.S.A. (“Lattice”).

 

RECITALS

 

WHEREAS the

parties entered into an Advance Production Payment Agreement (the “Agreement”)

on or about March 17, 1997;

 

WHEREAS the

parties desire to modify the Agreement and to set forth such mutually consensual

modifications in writing by way of this Amendment pursuant to Article 15.16 of

the Agreement;

 

WHEREAS the

parties entered into a New Facility Wafer Purchase Agreement as well as a Six

Inch Wafer Purchase Agreement, on or about July 25, 1997 ( respectively, “New

Facility Wafer Purchase Agreement” and “Six Inch Wafer Purchase Agreement”);

 

WHEREAS the

parties will contemporaneously amend any relevant provisions of the New

Facility Wafer Purchase Agreement so as to be consistent with this Amendment

(the amended agreement is hereinafter referred to as the “Amended New Facility

Wafer Purchase Agreement”);

 

WHEREAS all

references to headings and provisions thereto in this Amendment correspond to

those in the Agreement;

 

NOW, THEREFORE, in

consideration of the premises and mutual covenants set out in the Agreement and

this Amendment, such Agreement is hereby amended and/or supplemented as

follows:

 

 

1

 

1                      Background

 

1.2     EEA

Epson Electronics America, Inc. (“EEA”), is the successor of the entity

formerly known as

S

MOS Systems Inc. (“SMOS”).  EEA is an

affiliate of Epson and is Epson’s authorized distributor in the United States

for semiconductor devices.  EEA is in

the business of designing, testing, selling and distributing semiconductor

devices.  EEA conducts its business at

its office located at 150 River Oaks Parkway, San Jose, CA 95134-1951,

U.S.A.  All references to SMOS in the Agreement

and provisions of relevant Purchase Agreements and Existing Agreements shall be

interpreted to refer to EEA where the context may so require.

 

 

2     Definitions

 

2.1     “APP” will mean the advance

production payment of Eight Billion, Three Hundred Seventy-Six Million, Seven

Hundred Thousand Japanese Yen (JPY8,376,700,000) made by Lattice to Epson in

the manner described in Article 4.

 

2.9     “Products” will mean those specific

types of New Facility Wafers fabricated using the same masks and the same

process flow and identified by the same series or product name or number.  The Products will be ordered, fabricated,

delivered and sold pursuant to the terms and conditions of the Amended New

Facility Wafer Purchase Agreement.  The

Products which the parties desire to fabricate at the New Facility will be

agreed by and between Epson and Lattice, referring to the Process Road Map for

Lattice attached hereto as Exhibit B, which may be reviewed and amended from

time to time by mutual agreement of the parties.  The parties acknowledge however, that the final determination of

what Products will be fabricated may depend on the results of joint development

and product qualification.

 

          “Products” will also mean those

6 inch wafers fabricated by Epson for Lattice at Epson’s S-Wing Fab that are

credited against the APP pursuant to this Amendment and the Amended New

Facility Wafer Purchase Agreement.

 

2.16     [ *

]“Micron Process” will mean the [ * ] CMOS process owned, licensed or

developed by Epson which will be used at the New Facility, including the

extension of the process to [ * ].  The

[ * ] Micron Process will include (a) all process flow, process steps, process

conditions, and modifications thereto, 

 

2

 

used

to manufacture semiconductor wafers as well as (b) all methods, formulae,

procedures, technology and know-how associated with such process steps and

process conditions.  The [ * ] Micron

Process will not include any methods, formulae, procedures, technology or

know-how licensed or received from Lattice under this Agreement, the Existing

Agreements or other agreements executed between the parties in the future

unless otherwise agreed in writing.  If

the parties find it necessary or convenient to document process flow for any

Product, such documentation will be signed by the parties and attached to the

Amended New Facility Wafer Purchase Agreement as an exhibit.

 

2.18     “6

inch wafer(s)” will mean the semiconductor wafers to be fabricated by Epson

for Lattice at Epson’s S-Wing Fab.

 

2.19  “6 inch APP wafer(s)” will mean the

semiconductor wafers to be fabricated by Epson for Lattice at Epson’s S-wing

Fab that are designated by Lattice to be credited against the APP pursuant to

this Amendment and the Amended New Facility Wafer Purchase Agreement.

 

 

4     APP

 

4.1     APP

Lattice shall pay to Epson an amount equal to Eight Billion, Three Hundred

Seventy-Six Million, Seven Hundred Thousand Japanese Yen (JPY8,376,700,000)

(“APP”), which APP will be credited against certain future purchases by Lattice

of New Facility Wafers and 6 inch APP wafers as provided in Article 5.  Lattice will pay the whole amount of APP in

accordance with the payment schedule described in Exhibit C hereof.As of the

Date of this Amendment, an aggregate of Six Billion, Two Hundred Eighty-Three Million,

Seven Hundred Thousand Japanese Yen (JPY6,283,700,000) has been paid.

 

4.4     Additional APP

This provision is hereby deleted in its entirety by this Amendment.

 

5     Credit of APP

 

5.1     Credit of APP

The purchase price of all New Facility Wafers and 6 inch APP wafers purchased

by Lattice

 

3

 

under

the Amended New Facility Wafer Purchase Agreement, will be credited against the

amount of the APP until the aggregate Japanese Yen value of all New Facility

Wafers (excluding the Free Wafers) and 6 inch APP wafers purchased and received

by Lattice pursuant to the Amended New Facility Wafer Purchase Agreement, as

calculated pursuant to Article 5.2, equals or exceeds the amount of the

APP.  It is the intention of the parties

to accelerate the APP prepayment allocation using the 6 inch APP wafers as

purchased under terms and conditions of the Amended New Facility Wafer Purchase

Agreement.  The criteria and time

required for wafer acceptance by Lattice will be described in the Amended New

Facility Wafer Purchase Agreement.

 

5.2     Calculation of Aggregate Credit Value

The amount of APP will be offset and reduced on Japanese Yen to Japanese Yen

basis, at the end of each calendar month of this Agreement, by an amount equal

to the Price for the New Facility Wafers multiplied by the total number of New

Facility Wafers (excluding the Free Wafers); plus the Price for the 6 inch APP

wafers multiplied by the total number of 6 inch APP wafers shipped to Lattice

pursuant to the Amended New Facility Wafer Purchase Agreement during the

calendar month, with adjustment of the increase pursuant to the methods

provided in the Amended New Facility Wafer Purchase Agreement; however under no

circumstances shall the APP balance be increased, except as provided for in

Article 14.8 of this Agreement. Unless elected by Lattice from time to time, the

number of 6 inch APP wafers may not exceed [ * ] wafers credited against the

APP in any given quarter.

 

5.3     Invoices

Epson will cause EEA to provide Lattice with invoices under the Amended New

Facility Wafer Purchase Agreement which, for the purpose of APP application,

will specify the purchase price of the New Facility Wafers and 6 inch APP

wafers.  Also, EEA shall provide Lattice

and Epson with the monthly report describing, among others, the outstanding

balance of the APP (after the application of all prior offsets, reductions and

credits) as of the commencement of the month subject to the invoices, the

number of New Facility Wafers and/or 6 inch APP wafers shipped to Lattice in

accordance with the Amended New Facility Wafer Purchase Agreement during that

calendar month and the applied Price, and the outstanding balance of the APP as

of the end of such calendar month.  Such

report shall be signed by the respective responsible person at Epson, EEA and

Lattice, provided that Lattice shall not be required to sign any such report

unless it is satisfied with the accuracy and completeness thereof.  Lattice may, for its signature, review all

invoices and reports for inaccuracies and if any such inaccuracies are found

and confirmed by Epson

 

4

 

and

EEA, Lattice may request to make corrections to these invoices and reports.

 

 

5.4                Obligation after Completion of Off-setting the APP

Lattice will be required to pay for all New Facility Wafers in accordance with

the Amended New Facility Wafer Purchase Agreement once the APP has been fully

offset and reduced. Lattice will make the payments to Epson in Japanese Yen

based on the Price.  Further, Epson will

be required to fulfill the Supply Commitment and Lattice will be required to

fulfill the Purchase Commitment until Lattice has purchased [ * ] New Facility

Wafers.  Thereafter, during the

effective period of this Agreement, Epson and Lattice will continue to make

efforts to supply and purchase at the rate to be mutually agreed under fair and

competitive prices to be determined between the parties. Lattice will be

required to pay for all 6-inch wafers in accordance with the Six Inch Wafer

Purchase Agreement, once the APP has been fully offset and reduced.

 

 

6     Supply Commitment

 

6.1.1  No Supply Commitment for 6 inch wafers

Epson shall supply 6 inch wafers through EEA to Lattice in amounts and in

installments as the parties may mutually agree to in writing.

 

6.2     Purchase Agreements

The Supply Commitment will apply to Products covered by the Amended New

Facility Wafer Purchase Agreement with the exception of the 6 inch APP

wafers.  The parties anticipate that the

Amended New Facility Wafer Purchase Agreement will apply to Products

distributed by Lattice which require fabrication using the [ * ] Micron Process

and to the 6 inch APP wafers. However, the Six Inch Wafer Purchase Agreement

shall apply to 6-inch wafer purchases not designated towards offsetting the APP.

 

 

7     Purchase

Commitment

 

7.1.1  No Purchase Commitment for 6 inch wafers

Lattice

shall purchase 6 inch wafers through EEA in amounts and in installments as the

parties may mutually agree to in writing.

 

5

 

 

8                      Free

Wafers

 

As

a consideration for Lattice’s payment of APP, Epson shall provide Lattice with

[ * ] free [ * ] wafers of a Product manufactured in the New Facility (“Free

Wafers”) through EEA pursuant to the Amended New Facility Wafer Purchase Agreement

for every [ * ] New Facility Wafers ordered by Lattice after the execution of

this Agreement [ * ] until Epson has supplied a total of [ * ] Free

Wafers.  After Epson has supplied

Lattice with a total of [ * ] Free Wafers, Epson shall no longer be required to

provide any free wafers for subsequent New Facility and 6 inch APP Wafer

orders. For the purpose of calculating the number of Free Wafers earned by

Lattice, two six inch APP wafers will be considered equal to [ * ] New Facility

Wafer.

 

10   Wafer Pricing and Payment

 

10.1  Determination of Price

The general method for determining the price of Products (“Price”) shall be as

set forth in Exhibit E.  Epson agrees

that at any time the Prices to Lattice [ * ]. 

The Price herein shall be applicable until Lattice has completed the

purchase of [ * ] New Facility Wafers under the terms of this Agreement.

 

10.3  Payment

Unless otherwise stated in this Agreement or this Amendment, other than through

offset of the APP, Lattice will not be required to pay for any New Facility

Wafers or 6 inch APP wafers delivered under this Agreement or the Amended New

Facility Wafer Purchase Agreement until the APP has been fully offset and

reduced.  Once the APP is fully offset

and reduced, Lattice will be required to pay Epson for New Facility Wafers in

the manner specified in the Amended New Facility Wafer Purchase Agreement based

on the Price until Lattice has completed the purchase of [ * ] New Facility

Wafers under the terms of this Agreement. Once the APP has been fully offset

and reduced, Lattice will be required to pay Epson for 6 inch wafers in the

manner specified in the Six Inch Wafer Purchase Agreement.

 

6

 

 

15   Miscellaneous

 

15.1  Order of Precedence

In the event of any conflicts between this Amendment, the Agreement and the

Amended New Facility Wafer Purchase Agreement and the Six Inch Wafer Purchase

Agreement, any purchase orders, acceptances, correspondence, memoranda, listing

sheets or other documents forming part of an order for the Products placed by

Lattice and accepted by EEA (or Epson), priority will be given first to this

Amendment, second to the Agreement, third to the Amended New Facility Wafer

Purchase Agreement and the Six Inch Wafer Purchase Agreement, fourth to EEA’s

or Epson’s acceptance, fifth to Lattice’s order and then to any other

documents.  In no event, however, will

either party’s standard terms and conditions be applicable to the transactions

between Lattice and EEA (or Epson) unless expressly accepted in writing by the

other party.

 

15.6     Public

Announcements

Neither party will publicly announce the execution or existence of this

Agreement or disclose the terms and conditions of this Agreement without first

submitting the text of such announcement to the other party and receiving the

approval of the other party of such text, which approval, unless public

disclosure is required by a court or a government agency, may be withheld for

any reason.  However, Lattice and/or

Epson may disclose the existence and the terms of this Amendment and the

Agreement in any document legitimately required to be filed with the U.S.

Securities and Exchange Commission (and may file a copy of this Amendment and

the Agreement required legitimately with such filing), the Japanese Securities

and Exchange Commission or equivalent (and may file a copy of this Amendment

and the Agreement required legitimately with such filing), as required to

effectuate any private stock offering within or without the U.S. (including,

but not limited to, Qualified Institutional Buyers) or in accordance with

generally accepted accounting procedures under the rules of the Securities and

Exchange Commission or the National Association of Securities Dealers Automated

Quotations stock market.

 

15.7  Notices and Communications

Any notices required or permitted to be given hereunder will be in English and

be sent by (I) registered airmail or (ii) cable, facsimile or telex to be

confirmed by registered airmail, addressed to:

 

7

 

 

	

  To Epson:

  
	

   

  	

  281 Fujimi,

  Fujimi-machi, Suwa-gun

  
	

   

  	

  Nagano-ken

  399-02, Japan

  
	

   

  	

  Attn:

  	

  Yoshifumi Gomi,

  	

   

  
	

   

  	

   

  	

  Managing Director

  and Chief Executive of

  	

   

  
	

   

  	

   

  	

  Semiconductor

  Operations Division

  
	

   

  	

   

  	

  Tel:

  	

  81-266-61-1211

  
	

   

  	

   

  	

  Fax:

  	

  81-266-61-1272

  
	

   

  	

   

  	

   

  	

   

  
	

  To EEA:

  
	

   

  	

  150 River Oaks

  Parkway, San Jose, CA  95134—1951

  U.S.A.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Attn:

  	

  Akihiko Sato,

  President and CEO

  
	

   

  	

   

  	

  Tel:

  	

  1-408-922-0200

  
	

   

  	

   

  	

  Fax:

  	

  1-408-922-0238

  
	

   

  	

   

  	

   

  	

   

  
	

  To Lattice:

  
	

   

  	

  5555 N.E. Moore

  Ct., Hillsboro, OR  97124-6421 U.S.A.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Attn:

  	

  Cyrus Tsui

  Chairman, President and Chief Executive Officer

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Tel:

  	

  1-503-268-8000

  
	

   

  	

   

  	

  Fax:

  	

  1-503-268-8077

  
										

 

 

Any such notice

will be deemed given at the time of its receipt by the addressee.

 

The foregoing or

forthcoming provisions in this Amendment shall replace and supercede the

corresponding provisions in the Agreement and Exhibits.  Where a foregoing or forthcoming provision

in this Amendment has no corresponding provision in the Agreement or Exhibits,

such provision shall supplement the Agreement or Exhibits. The remainder of the

Agreement and Exhibits shall remain in full force and effect.

 

8

 

 

IN WITNESS

WHEREOF, the parties have signed this Amendment as of the date first above

written.

 

 

 

LATTICE SEMICONDUCTOR

CORPORATION

 

 

 

 

	

  By:

  	

  /s/ Jonathan Yu

  for Cyrus Tsui

  	

   

  
	

  Name:

  	

  Cyrus Tsui

  	

   

  
	

  Title:

  	

  Chairman and

  Chief Executive Officer

  	

   

  

 

 

 

SEIKO EPSON

CORPORATION

 

 

 

 

	

  By:

  	

  /s/ Yoshifumi

  Gomi

  	

   

  
	

  Name:

  	

  Yoshifumi Gomi

  	

   

  
	

  Title:

  	

  Managing Director

  and Chief Executive of

  Semiconductor Operations Division

  

 

 

 

EPSON ELECTRONICS AMERICA, INC. (formerly S MOS SYSTEMS, INC.)

 

 

 

 

	

  By:

  	

  /s/ Akihiko Sato

  	

   

  
	

  Name:

  	

  Akihiko Sato

  	

   

  
	

  Title:

  	

  President and

  CEO

  	

   

  

 

 

9

 

EXHIBIT C

 

“Payment Schedule”

[ * ]

 

EXHIBIT E

 

“Price Determination Procedure”

[ * ]

 

“APP Offset Procedure”

[

* ]

 

10Execution Copy

 

 

INTELLECTUAL PROPERTY AGREEMENT

by

and between

AGERE SYSTEMS INC.

And

AGERE

SYSTEMS GUARDIAN CORPORATION

And

LATTICE SEMICONDUCTOR

CORPORATION

as Buyer

dated January 18, 2002

 

 

 

INTELLECTUAL

PROPERTY AGREEMENT

TABLE OF CONTENTS

	

   

  	

   

  
	

  ARTICLE

  I DEFINITIONS

  	

   

  
	

  ARTICLE II ASSIGNMENT

  OF SOFTWARE

  	

   

  
	

  ARTICLE III SOFTWARE

  LICENSES

  	

   

  
	

  ARTICLE IV

  ASSIGNMENT OF INFORMATION

  	

   

  
	

  ARTICLE V LICENSES TO

  INFORMATION

  	

   

  
	

  ARTICLE VI ASSIGNMENT

  OF PATENTS

  	

   

  
	

  ARTICLE VII PATENT LICENSES

  	

   

  
	

  ARTICLE VIII

  ASSIGNMENT OF TRADEMARKS

  	

   

  
	

  ARTICLE

  IX FURNISHING OF ASSIGNED PATENTS, SOFTWARE, TECHNICAL INFORMATION AND

  TRADEMARK-RELATED INFORMATION

  	

   

  
	

  ARTICLE

  X POST CLOSING TECHNOLOGY ASSISTANCE AND ACCESS TO FUTURE IP CORES

  	

   

  
	

  ARTICLE

  XI EXPORT CONTROL

  	

   

  
	

  ARTICLE XII TERM AND

  TERMINATION

  	

   

  
	

  ARTICLE XIII ASSIGNABILITY

  	

   

  
	

  ARTICLE

  XIV LICENSES TO RELATED COMPANIES AND IMPROVEMENTS

  	

   

  
	

  ARTICLE XV

  WARRANTIES AND COVENANTS

  	

   

  
	

  ARTICLE XVI GENERAL

  PROVISIONS

  	

   

  
	

  ARTICLE XVII DISPUTE

  RESOLUTION

  	

   

  
	

  ARTICLE XVIII

  NOTICES AND STATEMENTS

  	

   

  
	

  Appendix A —

  Definitions Appendix

  	

   

  
	

  Appendix B — Assigned Software

  	

   

  
	

  Appendix C — Licensed Software

  	

   

  
	

  Appendix D — Assigned Technical Information

  	

   

  
	

  Appendix E — Licensed Technical Information

  	

   

  
	

  Appendix F — Assigned Patents, Applications, and Submissions

  	

   

  
	

  Appendix G — Trademark Assignment

  	

   

  
	

  Schedule A — U.S. Registrations and Applications

  	

   

  
	

  Appendix H — 3000 Series FPGAs

  	

   

  
	

  Appendix I — FPGA/FPSC Products

  	

   

  
	

  Appendix J — Certain Third Parties

  	

   

  
	

  Appendix K — Future IP Cores

  	

   

  

 

i

INTELLECTUAL PROPERTY AGREEMENT

 

This INTELLECTUAL PROPERTY AGREEMENT (this “Agreement”), dated

as of January 18, 2002, is made by and between on the one hand AGERE SYSTEMS

INC., a Delaware corporation (“Agere”), AGERE SYSTEMS GUARDIAN

CORPORATION (“Agere-Guardian”, Agere and Agere-Guardian, being

collectively or individually, as the context requires, referred to as “Seller”),

a Delaware corporation, and, on the other hand, Lattice Semiconductor

Corporation, a Delaware corporation (“Buyer”).  Agere, Agere-Guardian, and Buyer are sometimes referred to herein

individually as a “Party” and collectively as the “Parties”.

 

RECITALS

 

A.            WHEREAS, this Agreement is

provided as Exhibit C to the Asset Purchase Agreement (the “Purchase

Agreement”) entered into by and between Agere and Buyer pursuant to which

Agere is selling and Buyer is acquiring certain Purchased Assets, as that term

is defined in the Purchase Agreement. 

This Agreement is executed upon the signing by all Parties, and shall

become effective concurrent with and on the Closing Date of the Purchase

Agreement (the “Effective Date”);

 

B.            WHEREAS, Seller is, among

other things, engaged through a unit of its Infrastructure Systems Group in the

FPGA/FPSC Business;

 

C.            WHEREAS, Buyer is desirous of

acquiring from Agere certain Purchased Assets relating to the FPGA/FPSC

Business;

 

D.            WHEREAS, this Agreement is

intended by the Parties to address, among other things, the Intellectual

Property rights and Information either included in the Purchased Assets or

licensed to Buyer; and

 

E.             WHEREAS,

Agere is willing to license or assign certain patent and other Intellectual

Property rights to Buyer in accordance with the terms hereof.

 

NOW,

THEREFORE, in consideration of the mutual agreements and

covenants herein contained and intending to be legally bound thereby, the

Parties agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.01 Unless

otherwise defined in Appendix A attached hereto, as used in this Agreement any

term in initial capital letters shall have the meaning ascribed thereto in the

Purchase Agreement.

 

1

 

1.02 The

rules of interpretation set forth in Sections 1.3(b) through 1.3(g) of the

Purchase Agreement shall apply to the terms and conditions of this Agreement.

 

ARTICLE II

ASSIGNMENT

OF SOFTWARE

 

2.01 Seller

hereby transfers and assigns to Buyer all of its worldwide right, title and

interest in the Assigned Software, including all rights in registered and

unregistered copyrights therein.  Such

transfer does not include a transfer of, or license under, any Patents; any

such transfer of, or license under any such patent being specifically set forth

in Articles VI and VII.  Buyer’s

rights in the Assigned Software shall be subject to all nonexclusive grants of

rights pursuant to prior written agreements between Seller, its predecessors

(including AT&T Corp. and its Subsidiaries and Lucent Technologies Inc. and

its Subsidiaries) or its Related Companies, and one or more third parties that

are entered into and have an effective date prior to the Effective Date of this

Agreement.

 

2.02 Buyer

grants to Seller, under such rights in the Assigned Software as Buyer was

granted pursuant to Section 2.01 hereunder, a personal, nonexclusive,

non-transferable (except as provided in Article XIII), perpetual,

irrevocable, non-terminable, worldwide, royalty-free license to use, copy and

distribute the Assigned Software, and create, use, copy and distribute

Derivative Works from the Assigned Software with respect to any products or

services of the businesses in which Seller or any of its Related Companies is

now or hereafter engaged except that such rights may not be exercised for, and

such license does not extend to, (i) a Competing Use or (ii) the use,

design, manufacture, have manufactured, lease, import, offer for sale or sale

of Restricted FPGA/FPSC Products.

 

2.03 Seller

agrees to cause the Business Employees to deliver to Buyer copies of all Code

embodying or constituting the Assigned Software in all forms and media in which

such Code exists.  To Agere’s knowledge,

all of the Assigned Software is already in possession of such employees.  However, Agere agrees to take all steps

reasonably requested by Buyer in connection with delivering to Buyer any

missing parts of the Assigned Software. 

All costs of copying, preparing for delivery, and delivering Code to

Buyer hereunder shall be borne by Agere.

 

ARTICLE III

SOFTWARE

LICENSES

 

3.01 Seller

hereby grants to Buyer a fully paid-up, royalty free, worldwide, perpetual,

irrevocable, non-terminable, non-transferable (except as provided in

Article XIII) and nonexclusive license to the Licensed Software in the

Licensed Field, including the manufacture (or having manufactured), use, sale,

offer for sale, lease and importation of FPGA/FPSC Products and any other

products within the Licensed Field, under any and all copyright, trade secret

and other Intellectual Property rights (other than

 

2

 

Patent rights which are specifically granted

in Articles VI and VII) in the Licensed Software owned by Seller or its

Related Companies or in which Seller or its Related Companies have a right to

license without cost to Seller (subject to Section 14.04) as of the

Effective Date, including, without limitation, the right (i) to modify and

create Derivative Works of such Licensed Software, (ii) to reproduce the

Code of and Documentation for such Licensed Software, (iii) to combine the

Licensed Software and Derivative Works therefrom with other software or

hardware in the Licensed Field, and (iv) otherwise to use, copy,

distribute, perform and display the Licensed Software and Derivative Works

thereof in the Licensed Field.  The

foregoing license shall be sublicensable (but only to the extent that Seller

has a right to authorize Buyer to grant such a sublicense and provided that

Seller shall not be obligated to pay any consideration for such sublicense

authorization (subject to Section 14.04)) by Buyer to its customers,

distributors, consultants, developers and suppliers and to any of the Related

Companies of Buyer or its successors solely for use in the Licensed Field

including with FPGA/FPSC Products and any other product within the Licensed

Field, made by or for, used, sold, offered for sale, leased or imported by

Buyer.

 

3.02 Seller

shall cause the Business Employees to deliver to Buyer copies of the Licensed

Software in all forms and media in which such Code exists.  To Agere’s knowledge, all of the Licensed

Software already is in possession of such employees.  However, Agere agrees to take all steps reasonably requested by

Buyer in connection with delivering to Buyer any missing parts of the Licensed

Software.  All costs of copying,

preparing for delivery, and delivering Code to Buyer hereunder shall be borne

by Agere.

 

3.03 The

Parties recognize that the best or only available copy of certain Assigned

Software and Licensed Software may reside, prior to or after the Closing Date,

within the FPGA/FPSC Business or in the possession of the FPGA/FPSC Business,

and that Agere may require certain access to or copies of the Assigned Software

and Licensed Software for procurement purposes or other purposes consistent

with this Agreement, which, because of inadvertence or oversight, a copy was

not retained by or made available to Agere prior to the Closing Date.  To that end, Buyer agrees, upon receiving a

written request from Agere within the earlier of (i) ninety (90) days

after Buyer ceases using Seller’s corporate intranet and (ii) one

(1) year from the Closing Date, to provide, within a commercially

reasonable amount of time after receipt of Agere’s written request, copies of

any portion of the Assigned Software and Licensed Software belonging to or

licensed to Agere or one of its Related Companies to exercise the rights in

accordance with this Agreement.  Any

reasonable costs associated with the assembling, copying and delivering of such

requested Assigned Software and Licensed Software shall be borne by Agere.

 

3.04 For

a period of three (3) years from the Closing Date, neither Seller, any Related

Company of Seller, nor any of their respective successors shall directly or

indirectly license any Licensed Software constituting an IP Core listed in

Appendix C or K to (A) Actel Corporation, Xilinx, Inc., Altera Corporation or

any of their respective

 

3

 

Affiliates or successors, or (B) any third party which combines an IP

Core (hard core and/or soft core based upon or consisting of Licensed Software)

listed in Appendix C or K with a Semiconductive Device of Actel Corporation,

Xilinx, Inc., Altera Corporation or any of their respective Affiliates or

successors for resale as either (i) a stand-alone Semiconductive Device that is

provided with such IP Core consisting of Licensed Software (i.e., a soft core)

or (ii) a stand-alone Semiconductive Device that includes such IP Core (i.e., a

hard core).

 

3.05 As

between the Parties, all Derivative Works and improvements to any Code created

by or for a Party shall be exclusively owned by such Party subject to the

rights, if any, that the other Party may have in the Code or Information from

which such Derivative Work or improvement was derived.

 

ARTICLE IV

ASSIGNMENT

OF INFORMATION

 

4.01 Seller

hereby transfers and assigns to Buyer all of its worldwide right, title and

interest in and to the Assigned Technical Information including all copyright

and trade secret rights therein.  Such

transfer does not include a transfer of, or license under, any Patents; any

such transfer of, or license under, any such Patent being specifically set

forth in Articles VI and VII. 

Buyer’s rights in such Assigned Technical Information shall be subject

to all nonexclusive grants of rights pursuant to prior written agreements

between Seller, its predecessors (including AT&T Corp. and its Subsidiaries

and Lucent Technologies Inc. and its Subsidiaries) or its Related Companies,

and one or more third parties that are entered into and have an effective date

prior to the Effective Date of this Agreement.

 

4.02 Buyer

grants to Seller under such rights in the Assigned Technical Information as

Buyer is granted hereunder by Seller to Buyer pursuant to Section 4.01, a

personal, nonexclusive, non-terminable, non-transferable (except as provided in

Article XIII), perpetual, irrevocable, worldwide, royalty-free license to

use, copy and distribute the Assigned Technical Information, and create, use,

copy and distribute Derivative Works from the Assigned Technical Information

with respect to any products or services of the businesses in which Agere or

any of its Related Companies is now or hereafter engaged except that such

rights may not be exercised for, and such license does not extend to,

(i) a Competing Use or (ii) the use, design, manufacture, having

manufactured, lease, offer for sale, import or sale of Restricted FPGA/FPSC

Products.

 

4.03 Seller

shall cause the Business Employees to deliver to Buyer copies of all documents

and other Information of whatever kind in whatever medium that embody or

constitute the Assigned Technical Information.  To Agere’s knowledge, all of the Assigned Technical Information

already is in possession of such employees. 

However, Agere agrees to take all steps reasonably requested by Buyer in

connection with delivering to Buyer any missing parts of the Assigned Technical

Information.  All costs

 

4

 

of copying, preparing for delivery, and

delivering Code to Buyer hereunder shall be borne by Agere.

 

4.04 The

Parties recognize that the best or only available copy of certain Assigned

Technical Information may reside, prior to or after the Closing Date, within

the FPGA/FPSC Business or in the possession of the FPGA/FPSC Business, and that

Agere may require certain access to or copies of the Assigned Technical

Information for procurement purposes or other purposes consistent with this

Agreement, which, because of inadvertence or oversight, a copy was not retained

by or made available to Agere prior to the Closing Date.  To that end, Buyer agrees, upon receiving a

written request from Agere within the earlier of (i) ninety (90) days

after Buyer ceases using Seller’s corporate intranet, and (ii) one

(1) year from the Closing Date, to provide, within a commercially

reasonable amount of time after receipt of Agere’s written request, copies of

any portion of the Assigned Technical Information deemed necessary by Agere or

one of its Related Companies to exercise the rights in accordance with this

Agreement.  Any reasonable costs

associated with the assembling, copying and delivering of such requested

Assigned Technical Information shall be borne by Agere.

 

ARTICLE V

LICENSES

TO INFORMATION

 

5.01 Seller

grants to Buyer a royalty-free, fully paid-up, worldwide, irrevocable,

perpetual, non-terminable, non-transferable (except as provided in

Article XIII) and nonexclusive license to the Licensed Technical

Information in the Licensed Field, including the manufacture (including having

manufactured), use, sale, offer for sale, lease and importation of FPGA/FPSC

Products and any other products within the Licensed Field, under any and all

copyright, trade secret and other Intellectual Property rights in such Licensed

Technical Information (other than patent rights which are specifically granted

in Article VI and VII) owned by Seller or its Related Companies or in

which Seller or its Related Companies have a right to license without cost to

Seller (subject to Section 14.04) as of the Effective Date including,

without limitation, the right to use, copy, distribute, modify and create

Derivative Works from such Licensed Technical Information.

 

5.02 Seller

hereby grants to Buyer a personal, fully paid-up, royalty free, irrevocable,

perpetual, non-terminable, non-transferable (except as provided in

Article XIII) and nonexclusive right, as an attribute of the right to use

the Licensed Technical Information in Section 5.01, to communicate (subject to

confidentiality provisions as least as restrictive as those in

Section 15.03) portions of and grant nonexclusive sublicenses (of the same

scope as the licenses granted to Buyer under Section 5.01) to such

Licensed Technical Information to customers, distributors, consultants,

developers and suppliers of Buyer and to any of the Related Companies of Buyer

or its successors solely for use in the Licensed Field.

 

5

 

5.03 Seller

shall cause the Business Employees to deliver to Buyer copies of all documents

of whatever kind in whatever medium that embody the Licensed Technical

Information.  To Agere’s knowledge, all

of the Licensed Technical Information already is in possession of such

employees.  However, Agere agrees to

take all steps reasonably requested by Buyer in connection with delivering to

Buyer any missing parts of the Licensed Technical Information.  All costs of copying, preparing for

delivery, and delivering Licensed Technical Information to Buyer hereunder

shall be borne by Agere.

 

5.04 The

Parties recognize that the best or only available copy of certain Licensed

Technical Information may reside, prior to or after the Closing Date, within

the FPGA/FPSC Business or in the possession of the FPGA/FPSC Business, and

Agere may require certain access to or copies of the Licensed Technical

Information for procurement purposes or other purposes consistent with this Agreement,

which because of inadvertence or oversight, a copy was not retained by or made

available to Agere prior to the Closing Date. 

To that end, Buyer agrees, upon receiving a written request from Agere

within the earlier of (i) ninety (90) days after Buyer ceases using

Seller’s corporate intranet and (ii) one year (1) from the Closing

Date, to provide, within a commercially reasonable amount of time after receipt

of Agere’s written request, copies of any portion of the Licensed Technical Information

deemed necessary by Agere or one of its Related Companies to exercise the

rights in accordance with this Agreement. 

Any reasonable costs associated with the assembling, copying and

delivering of such requested Licensed Technical Information shall be borne by

Agere.

 

5.05 For

a period of three (3) years from the Closing Date, neither Seller, any Related

Company of Seller, nor any of their respective successors shall directly or

indirectly license any Licensed Technical Information, Information, or

Intellectual Property Rights constituting, or used in the creation of, an IP

Core listed in Appendix C or K to (A) Actel Corporation, Xilinx, Inc., Altera

Corporation or any of their respective Affiliates or successors, or (B) any

third party which combines an IP Core (hard core and/or soft core based upon or

consisting of Licensed Software and/or Licensed Technical Information) listed

in Appendix C or K with a Semiconductive Device of Actel Corporation, Xilinx,

Inc., Altera Corporation or any of their respective Affiliates or successors

for resale as either (i) a stand-alone Semiconductive Device that is provided

with such IP Core consisting of Licensed Software and/or Licensed Technical

Information (i.e., a soft core) or (ii) a stand-alone Semiconductive Device that

includes such IP Core (i.e., a hard core).

 

5.06 As

between the Parties, all Derivative Works and improvements to any Information

created by or for a Party shall be exclusively owned by such Party subject to

the rights, if any, that the other Party may have in the Code or Information

from which such Derivative Work or improvement was derived.

 

6

 

ARTICLE VI

ASSIGNMENT

OF PATENTS

 

6.01 Seller

hereby transfers and assigns to Buyer all of its worldwide right, title and

interest in and to the Assigned Patents. 

Seller hereby assigns to Buyer all rights to sue for past infringement

of such Assigned Patents.  Buyer’s

rights in such Assigned Patents shall be subject to all nonexclusive grants of

rights pursuant to prior written agreements between Seller, its predecessors

(including AT&T Corp. and its Subsidiaries and Lucent Technologies Inc. and

its Subsidiaries) or its Related Companies, and one or more third parties that

are entered into and have an effective date prior to the Effective Date of this

Agreement.

 

6.02 Buyer

grants to Seller under such rights as Buyer has received hereunder, a personal,

nonexclusive, non-transferable (except as provided in Article XIII),

irrevocable, non-terminable, worldwide, royalty-free license under such rights

in the Assigned Patents as granted to Buyer hereunder to make, have made, use,

offer to sell, sell, lease and import any products or services of the

businesses in which Seller is now or hereafter engaged except that such license

may not be exercised with respect to, and such license does not extend to

(i) a Competing Use and (ii) for a period of three (3) years, the

making (having made), using, leasing, offering for sale, selling or importing

of Restricted FPGA/FPSC Products.  Subject to the foregoing and the provisions of the Purchase

Agreement, Seller may at any time exercise the rights and licenses under this

Article VI for procuring from third parties engineering samples, prototypes,

components or the like designed and manufactured by such third parties for the

purposes of evaluation or qualification of a third party as a potential

supplier to Seller of any product or service of such third party.

 

6.03 At

the Closing, Seller shall deliver to Buyer fully executed assignments, in a

form reasonably satisfactory to Buyer, to transfer the Assigned Patents to

Buyer.  Buyer shall be responsible for

any and all recording fees related to the assignment of the Assigned Patents

from Agere-Guardian to Buyer pursuant to Section 6.01.  Seller agrees to execute all documents

required for the assignment of such Assigned Patents to Buyer.

 

ARTICLE VII

PATENT

LICENSES

 

7.01 Seller

hereby grants to Buyer a personal, fully paid-up, royalty free, worldwide,

non-transferable (except as provided in Article XIII), irrevocable,

non-terminable and nonexclusive license under the Seller Licensed Patents to

make (have made), use, sell, offer for sale, lease, and import products and to

provide services in connection with the making, having made, using, selling,

offer to sell, leasing and importing of Semiconductive Devices. Notwithstanding

any other provision, the patent licenses granted herein to Buyer for

Semiconductive Devices sold by Buyer do not include any patent license for the

making (having made), using, selling, offering for sale, leasing, or importing

of Foundry Devices.

 

7

 

7.02 Without

limiting Seller’s obligations under the Non-Compete set forth in the Purchase

Agreement or with respect to Restricted FPGA/FPSC Products, Buyer hereby grants

to Seller a personal, fully paid-up, royalty free, worldwide, non-transferable

(except as provided in Article XIII), irrevocable, non-terminable and

nonexclusive license under the Buyer Licensed Patents to make (have made), use,

sell, offer for sale, lease, and import Semiconductive Devices and to provide

services in connection with the making, having made, using, selling, offer to

sell, leasing and importing of Semiconductive Devices except that such license

may not be exercised with respect to, and such license does not extend to

(i) a Competing Use and (ii) for a period of three (3) years, the

making (having made), using, leasing, offering for sale, selling or importing

of Restricted FPGA/FPSC Products. 

Notwithstanding any other provision, the patent licenses granted herein

to Seller for Semiconductive Devices sold by Seller do not include any patent

license for the making (having made), using, selling, offering for sale,

leasing, or importing of Foundry Devices.

 

7.03 The

Patent licenses granted hereunder to Buyer Licensed Patents, Seller Licensed

Patents and Assigned Patents shall extend until the Patent’s expiration or the

expiration of as much of such term as grantor has the right to grant.

 

7.04 A

Party’s failure to meet any obligation hereunder, due to assignment of title to

any invention or patent, or the granting of any licenses, to the United States

Government or any agency or designee thereof pursuant to a statute, regulation

of such Government or agency shall not constitute a breach of this Agreement.

 

7.05 Seller

grants to Buyer and the divested FPGA/FPSC Business a sublicense under those

patent license rights granted to Seller by any third party pursuant to any

patent license agreement between such third party and Seller existing as of the

Effective Date of this Agreement which Seller may sublicense, but only to the

extent that Seller has a right to grant such a sublicense and provided that

Seller shall not be obligated to pay any consideration for such sublicense

(subject to Section 14.04) or relinquish its own licenses.

 

7.06 Buyer

grants to Seller a sublicense under those patent license rights granted to

Buyer by any third party pursuant to any patent license agreement between such

third party and Buyer existing as of the Effective Date of this Agreement which

Buyer may sublicense, but only to the extent that Buyer has a right to grant

such a sublicense and provided that Buyer shall not be obligated to pay any

consideration for such sublicense or relinquish its own licenses.

 

7.07 The

have made rights granted hereunder to Buyer or Seller shall not be exercised in

a manner that the exercise of such have made rights is a sham to sublicense the

Licensed Patents to a third party and not for bona fide business purposes

of the Buyer or Seller as the case may be.

 

8

 

ARTICLE

VIII

ASSIGNMENT

OF TRADEMARKS

 

8.01 Seller

transfers and assigns to Buyer all of its worldwide right, title and interest

in and to the Assigned Marks as set forth 

on Schedule A of Appendix G hereto, and all

rights, privileges and goodwill associated therewith including the right to

recover and take all such proceedings as may be necessary for the recovery of

damages or otherwise in respect of past, present and future infringement of any

of such Assigned Marks.  Such assignment

shall be subject to all nonexclusive grants of rights pursuant to prior written

agreements between Seller, its predecessors (including AT&T Corp. and its

Subsidiaries and Lucent Technologies Inc. and its Subsidiaries) or its Related

Companies, and one or more third parties that are entered into and having an

effective date prior to the Effective Date of this Agreement.  Seller shall notify Buyer of any agreements

in which Seller has made any nonexclusive grants of rights or licenses with

respect to the Assigned Marks, and the terms thereof.  To the extent necessary, Seller shall assign to Buyer any rights

Seller may have under such agreements to maintain, and police the use of, the

Assigned Marks.

 

8.02 Seller

shall deliver to Buyer fully executed assignments, in a form reasonably

satisfactory to Buyer, to the Assigned Marks to Buyer for each jurisdiction in

which such marks are registered. 

Provided Seller delivers such executed assignments in a form suitable

for filing in each of the relevant jurisdictions, Buyer shall bear any costs of

recording such assignments.  Agere shall

execute all documents and perform all acts as required for the assignment and

recording of Assigned Marks to Buyer under this Agreement.

 

ARTICLE IX

FURNISHING

OF ASSIGNED PATENTS, SOFTWARE, TECHNICAL

INFORMATION AND TRADEMARK-RELATED INFORMATION

 

9.01 Without

limiting Seller’s obligations, pursuant to Sections 2.03, 3.02, 4.03 and

5.03, Agere shall furnish to Buyer the following:

 

(i)    the

Assigned Patents (including the associated patent files in Seller’s

possession);

 

(ii)   the

Software;

 

(iii)  the

Technical Information; and

 

(iv)  information

regarding the Trademarks.

 

9.02 Delivery

of any materials hereunder shall be deemed completed on the date received by

Buyer or its designated Related Company at such locations as may reasonably be

agreed by the Parties.  In the event

that during the Technical Assistance

 

9

 

Period, it is discovered that Software or Technical Information that

should have been scheduled on an Appendix hereto or delivered to Buyer pursuant

to this Agreement, was not so delivered or scheduled, promptly upon the

discovery of such failure, Seller shall deliver such discovered Software or

Technical Information to Buyer, and/or Seller shall maintain a written record

of such delivered Software or Technical Information, as the case may be.

 

9.03 To

the extent that any Software or Technical Information, including, for example,

the mask works for the FPGA/FPSC Products, is known to Seller to be in the

possession of a third party described in Appendix J, Seller will, at Closing,

provide each such third party with a written notice reasonably satisfactory to

Buyer, that such Software or Technical Information, (i) if assigned to

Buyer hereunder, is owned by Buyer, or (ii) if licensed to Buyer

hereunder, is licensed to Buyer, may be accessed by Buyer, and used by such

third party for the benefit of Buyer pursuant to the terms of this

Agreement.  Without limiting the

foregoing, after the Closing Date, Seller shall promptly provide the foregoing

notification upon receipt of Buyer’s request notifying Seller of third parties

that have been in possession of Software or Technical Information.

 

ARTICLE X

POST

CLOSING TECHNOLOGY ASSISTANCE AND ACCESS TO FUTURE IP CORES

 

10.01       Technology Transfer

Assistance.  During the Technical Assistance Period, at no cost to

Buyer, Agere shall provide to Buyer technical consulting and assistance by

qualified Agere technical personnel as may be reasonably requested by Buyer

with respect to the Software and Technical Information delivered to Buyer

hereunder.  Seller shall not be required

to provide any such technical assistance in excess of (A) the sum of

(i) 250 equivalent person-days, and (ii) 50 equivalent person-days

for each IP Core delivered after the Closing Date (as specified in Appendix K),

and (B) 60 equivalent person days within any calendar month.

 

10.02       Future Delivery. 

To the extent that the design of an IP Core listed on Appendix C or K hereto is

not delivered as of the Closing Date, Seller shall deliver to Buyer the Code

and Information for each such IP Core as soon as the design for such IP Core is

completed (subject to the following sentence), in a form that has been

typically provided to the FPGA/FPSC Business in the past for use in a FPSC or

FPGA product.  If an IP Core is not

completed (“Non-completed IP Core”), Buyer, at its option, may cause Seller to

deliver such IP Core in its current state to Buyer.  If Buyer requests such delivery of a Non-completed IP Core, such

delivery shall be considered as delivery of a completed IP Core.  If Seller determines to not develop an IP

Core set forth on Appendix C or K, Seller shall promptly notify Buyer of such

determination.  During a two-year period

after such notice of determination, Seller shall promptly inform Buyer of

like-kind IP cores that either exist or are under development by Seller.  During such two year period, Buyer shall

have the right to select one (1) of Seller’s such like-kind IP cores (for

 

10

 

the purposes of Appendix K, like-kind IP cores shall

mean a high speed back plane interface core for the HCC SERDES (COM2) and a

chip-to-chip interconnect I/O core for the SPI-4 and the CSIX10G) for delivery

by Seller to Buyer for each IP Core set forth on Appendix C or K that is not

delivered by Seller to Buyer. 

Notwithstanding the foregoing, Seller has no obligation to start,

complete, or otherwise continue any development for any particular IP Cores

after the Closing Date.

 

10.03       If,

during the Technical Assistance Period, any Information or Code for an IP Core

delivered to Buyer hereunder is modified or updated, including through bug

fixes, by or for Seller, Seller shall promptly deliver to Buyer the

updated  Information and  Code for such IP Core in a manner, and to

those persons, consistent with the Licensed Technical Information and Licensed

Software delivered for existing IP Cores previously provided.  In addition, to the extent that any other

Licensed Software or Licensed Technical Information is still under development

and not in a form suitable to be delivered as of the Closing Date, Seller shall

deliver such Licensed Software or Licensed Technical Information to Buyer as

soon as practicable following the Closing Date.  Notwithstanding the foregoing, Seller has no obligation to start,

complete, or otherwise continue any development for any such Licensed Information

or Licensed Code after the Closing Date.

 

10.04       Access to future IP

Cores.  Beginning on the Closing Date and ending on the third

anniversary of the Closing Date (the “Capture Period”), should Seller

(or any successor to any relevant portion of Seller’s business) develop or

intend to develop IP Cores suitable for use in FPGA/FPSC Products not

identified in Appendix C or K and not existing at the time of the Closing,

Seller shall provide Buyer with prompt disclosure of and access to Information

and Code of Seller reasonably necessary to enable Buyer to evaluate such IP

Cores solely for the purpose of potentially licensing IP Cores from

Seller.  With respect to the disclosure

of any Source Code, access to the Source Code may be limited, at Seller’s discretion,

to Seller supervising Buyer’s access to the Source Code.  In addition, Seller may leave, at Seller’s

discretion, the Source Code in the possession of Buyer.  During the Capture Period, Buyer may select

any two (or more if mutually agreed) of the potential IP Cores for FPGA and

FPSC products and Seller agrees to negotiate in good faith to separately

license the selected IP Cores to Buyer for use in FPGA and FPSC products on

commercially reasonable terms with additional value to Seller.

 

10.05       Third-party

Developed Cores.  As described in

the following table, certain IP Cores are being developed for Seller by

third-party developers.  Prior to the

Closing, Seller shall obtain the necessary rights from the relevant third-party

developer (to the extent that Seller does not currently have such rights) to,

and shall, and hereby does, license such IP Cores to Buyer as Licensed Software

and Licensed Technical Information in accordance with the terms hereof.  Notwithstanding the foregoing, with respect

to MorethanIP, to the extent that Buyer obtained rights to the relevant IP

Cores by assignment of a MorethanIP license in the Purchase Agreement, no

further license grant by Seller is hereunder is required.

 

11

 

 

	

  Core

  	

   

  	

  Third Party Developer

  	

   

  	

  Development Agreement

  
	

  Pi-BridgeFX8 Device 

   

  Pi-BridgeNP48 Device

  	

   

  	

  Comit Systems, Inc.

  	

   

  	

  Services Agreement with Comit Systems,

  Inc., dated February 4, 2001

  
	

  POS/PHY 3

  	

   

  	

  MoreThanIP.com

  	

   

  	

  Services Agreement with MoreThanIP.com

  dated December 19, 2000

  
	

  1G and 10G Ethernet Media Access Controller

  (MAC)

  	

   

  	

  Path 1 Network Technologies, Inc.

  	

   

  	

  Software License and Maintenance Agreement

  dated 

  

 

 

ARTICLE XI

EXPORT

CONTROL

 

11.01       (a)           The Parties acknowledge that any

information and software (including services and training) provided under this

Agreement are subject to U.S. export laws and regulations and any use or

transfer of such information and software must be authorized under those

regulations.  Buyer hereby assures Agere

that it will not without a license or license exception authorized by the

Bureau of Export Administration of the U.S. Department of Commerce, Washington,

D.C. 20230, United States of America, if required

 

(i)    export

or release the information or software (including Source Code) obtained

pursuant to this Agreement to a national of Country Groups D:1 or E:2 (15

C.F.R. Part 740, Supp. 1), Iran, Iraq, Sudan, or Syria;

 

(ii)   export

to Country Groups D:1 or E:2, or to Iran, Iraq, Sudan, or Syria, the direct

product (including processes and services) of the information or software; or

 

(iii)  if

the direct product of the information is a complete plant or any major

component of a plant, export to Country Groups D:1 or E:2, or to Iran, Iraq,

Sudan, or Syria, the direct product of the plant or major component.

 

(b)   This

assurance will be honored even after any termination of this Agreement or the

Purchase Agreement.

 

12

 

ARTICLE XII

TERM AND

TERMINATION

 

12.01       This

Agreement shall be effective during the term commencing on the Effective Date

hereof and shall continue unless terminated (i) by mutual agreement

between the Parties; or (ii) pursuant to the Purchase Agreement.

 

12.02       The

rights and obligations of Buyer and Seller which, by their nature would

continue beyond termination of this Agreement shall survive and continue after

any termination of this Agreement.  For

example, the licenses granted by either party to the other hereunder shall

survive and continue after any termination of this Agreement.

 

ARTICLE

XIII

ASSIGNABILITY

 

13.01       The

Parties hereto have entered into this Agreement in contemplation of the

purchase by Buyer of the FPGA/FPSC Business of Seller.

 

13.02       All

of Seller’s rights, title and interest in this Agreement and any licenses and

rights granted to it hereunder may be assigned to any of its Related Companies

or any direct or indirect successor to all or substantially all of the assets

of Seller, which successor shall thereafter be deemed substituted for Seller as

the Party hereto, effective upon such assignment, provided that such successor

shall be subject to all limitations or waivers applicable to Seller pursuant to

this Agreement and the Purchase Agreement. 

Buyer may assign all of its rights and obligations existing or arising

under this Agreement to any successor to all or substantially all the assets of

Buyer as the result of a sale, an acquisition, merger, change of control,

consolidation, reorganization, or re-capitalization of Buyer or such business,

which successor shall thereafter be deemed substituted for Buyer as a Party

hereto, subject to written acceptance of such assignment by such successor.

Notwithstanding

any such assignment to a successor of Seller or Buyer, as the case may be, any

licenses assigned in accordance herewith to the successor do not include any

past or future licenses to make, use, sell, offer for sale, or import any

products, including Semiconductive Devices or Code, which are sold or otherwise

distributed, directly or indirectly, by such successor prior to such

assignment.  Nothing set forth herein

shall in any way restrict Buyer’s rights to dispose of, assign or license any

Assigned Patents, Assigned Software or Assigned Technical Information.

 

13.03       (a)           The grant of each license hereunder

to any Intellectual Property, other than patents or any rights arising under

any pending or issued patent, also includes the right of a Party to sublicense

(within the scope of its own licenses) any business which is divested by that

Party or any of its Related Companies provided that the sublicense is granted

within sixty (60) days of divestiture and the divested business is itself a

legal entity at the time of divestiture or within sixty (60) days thereafter.

 

13

 

(b)   The

foregoing sublicense shall be subject to the following restrictions for a

period of  three (3) years:

 

(i)    In

the case of Seller, subject to the Non-Compete provisions set forth in

Section 5.10 of the Purchase Agreement and any other limitations on the

licenses granted to Seller hereunder (i) such sublicense may continue for

so long as the divested business remains a legal entity and shall extend only

to the licensed products sold or services furnished by the divested business

prior to the divestiture and only for the rights of the non-divesting Party

licensed to the divesting Party in this Agreement as of the date of divestiture

and (ii) any sublicense shall not extend to the products sold or services

furnished by a third party which acquires the divested business, even if they

are of the same kind or similar to those of the divested business and even if

made, sold or provided by the divested business.

 

(ii)   In

the case of Buyer, subject to any limitations on the licenses granted to Buyer hereunder

(i) such sublicense may continue for so long as the divested business

remains a legal entity and shall extend only to the licensed products sold or

services furnished by the divested business prior to the divestiture and only

for the rights of the non-divesting Party licensed to the divesting Party in

this Agreement as of the date of divestiture and (ii) any sublicense shall

not extend to the products sold or services furnished by a third party which

acquires the divested business, even if they are of the same kind or similar to

those of the divested business and even if made, sold or provided by the

divested business.

 

ARTICLE XIV

LICENSES

TO RELATED COMPANIES AND IMPROVEMENTS

 

14.01       The

grant of each license hereunder includes the right to grant sublicenses within

the scope of such license to a Party’s Related Companies for so long as they

remain its Related Companies.  Any and

all licenses or sublicenses granted to Related Companies pursuant to this

Agreement may be made effective retroactively, but not prior to the Effective

Date hereof.

 

14.02       Unless

otherwise specifically expressed herein, no license to, or right of a Party,

under any patent, copyright, trademark, trade secret, or any other Intellectual

Property right, is either granted or implied by conveying any information to

such Party.

 

14.03       Except

as otherwise expressly provided for herein or the Purchase Agreement, no rights

are granted to a Party under any improvements or Derivative Works of the

Software, the Technical Information, or the Patents to the extent made by the

other Party after the Effective Date.

 

14

 

14.04       In

the event that Seller may sublicense patents, Software or Technical Information

of a third party to Buyer hereunder only provided that Seller pays to such

third party consideration for the grant of such sublicense, Seller shall so

inform Buyer in writing and Buyer shall have the option to have Seller grant

such sublicense to Buyer within a reasonable period of time after receipt of

such notice from Buyer, provided that (i) Buyer agrees to reimburse such

consideration to Seller and (ii) Seller is not obligated to provide any

other consideration (including, for example, additional patent licenses) to

such third party in order to grant such sublicense to Buyer.

 

ARTICLE XV

WARRANTIES

AND COVENANTS

 

15.01       All

warranties and representations are exclusively set forth in the Purchase

Agreement.

 

15.02       (a)           EXCEPT AS EXPRESSLY PROVIDED IN THE

PURCHASE AGREEMENT, THE TECHNICAL INFORMATION, SOFTWARE OR OTHER INFORMATION

ASSIGNED OR LICENSED UNDER THIS AGREEMENT IS ASSIGNED OR LICENSED “AS IS” WITH

ALL FAULTS, LATENT AND PATENT AND WITHOUT ANY WARRANTY OF ANY TYPE.  AGERE AND ITS RELATED COMPANIES MAKE NO

REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED.  BY WAY OF EXAMPLE, BUT NOT OF LIMITATION, EXCEPT AS EXPRESSLY

PROVIDED IN THE PURCHASE AGREEMENT, AGERE AND ITS RELATED COMPANIES MAKE NO

REPRESENTATIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR THAT

THE USE OF THE TECHNICAL INFORMATION, SOFTWARE OR OTHER INFORMATION WILL NOT

INFRINGE ANY PATENT OR OTHER INTELLECTUAL PROPERTY RIGHT OF ANY THIRD PARTY AND

IT SHALL BE THE SOLE RESPONSIBILITY OF BUYER TO MAKE SUCH DETERMINATION AS IS

NECESSARY WITH RESPECT TO THE ACQUISITION OF LICENSES UNDER PATENTS OR OTHER

INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

 

(b)   EXCEPT AS

EXPRESSLY PROVIDED IN THE PURCHASE AGREEMENT, AGERE AND ITS RELATED COMPANIES

SHALL NOT BE HELD TO ANY LIABILITY WITH RESPECT TO ANY PATENT INFRINGEMENT OR

ANY OTHER INFRINGEMENT CLAIM MADE BY BUYER OR ANY THIRD PARTY ON ACCOUNT OF, OR

ARISING FROM THE USE OF, THE TECHNICAL INFORMATION, SOFTWARE OR OTHER

INFORMATION ASSIGNED OR LICENSED HEREUNDER.

 

15.03       Buyer agrees:

 

(a)   that

it will not, without Agere’s express written permission or as provided herein

or in the Purchase Agreement, or as otherwise agreed to in writing,

(i) use in advertising, publicity, or otherwise any trade name, trademark,

trade device,

 

15

 

service mark, symbol or any other identification or any abbreviation,

contraction or simulation thereof owned or used by Agere or any of its Related

Companies, or (ii) represent, directly or indirectly, that any product or

service produced in whole or in part with the use of any of the Software,

Technical Information or Patents is a product or service of Agere or any of its

Related Companies; and

 

(b)   that

except as otherwise expressly provided for in this Agreement, and provided that

the following shall in no way limit Buyer’s exercise of the licenses granted to

it hereunder, it will hold in confidence for Agere all parts of the Licensed

Software, the Licensed Technical Information, Information relating to future IP

Cores, and other private or confidential information of Agere that Buyer’s

personnel may unavoidably receive or have access to during the performance of

this agreement to the extent that the foregoing was marked by Agere as

“confidential” prior to disclosure thereof to Buyer or information that by its

nature would reasonably be considered confidential.  Buyer further agrees that all such information shall remain the

property of Agere and that Buyer shall not, unless permitted elsewhere in this

agreement, make any disclosure of such information to anyone, except to

employees, customers, investors (prospective or actual) or contractors of Buyer

to whom such disclosure is necessary to the use for which rights are granted

hereunder or otherwise in accordance with the licenses granted to Buyer hereunder.  Buyer shall appropriately notify all

employees to whom any such disclosure is made that such disclosure is made in

confidence and shall be kept in confidence by them.  Notwithstanding the above in this Section 15.03(b), Buyer

may use and disclose any or all of the information described in this

Section 15.03(b) above in the manner that Buyer discloses its own

information of like nature so long as Seller’s information is only so disclosed

in combination with Buyer’s information.

 

(c)   The

restrictions under this Section 15.03 on the use or disclosure of such

information shall not apply to such information:

 

(i)    which

is independently developed by Buyer or is lawfully received free of restriction

from another source having the right to so furnish such information; or

 

(ii)   after

it has become generally available to the public by acts not attributable to

Buyer or its employees, agents or contractors; or

 

(iii)  which

at the time of disclosure to Buyer was known to Buyer free of restriction and

evidenced by documentation in Buyer’s possession; or

 

(iv)  which

Agere agrees in writing is free of such restrictions; or

 

(v)   which

is requested pursuant to a judicial or governmental request, requirement or

order under law, provided that Buyer provides Agere with sufficient prior

notice in order to contest such request, requirement or order or seek

protective measures.

 

16

 

15.04       Seller agrees:

 

(a)   that

it will not, without Buyer’s express written permission or as provided herein

or in the Purchase Agreement, or as otherwise agreed to in writing,

(i) use in advertising, publicity, or otherwise any trade name, trademark,

trade device, service mark, symbol or any other identification or any

abbreviation, contraction or simulation thereof owned or used by Buyer or any

of its Related Companies or assigned to Buyer hereunder, or

(ii) represent, directly or indirectly, that any product or service

produced in whole or in part with the use of any of the Software, Technical

Information or Patents is a product or service of Buyer or any of its Related

Companies; and

 

(b)   that

except as otherwise expressly provided for in this Agreement, and provided that

the following shall in no way limit Seller’s exercise of the licenses granted to

it hereunder, it will hold in confidence for Buyer all parts of the Assigned

Software and the Assigned Technical Information that prior to the transfer

thereof was considered by Seller to be “confidential”.  Seller further agrees that all such

information shall be the property of Buyer and that Seller shall not, unless

permitted elsewhere in this agreement, make any disclosure of such information

to anyone, except to employees or contractors of Seller to whom such disclosure

is necessary to the use for which rights are granted hereunder.  Seller shall appropriately notify all

employees to whom any such disclosure is made that such disclosure is made in

confidence and shall be kept in confidence by them.  Notwithstanding the above in this Section 15.04(b), Seller

may use and disclose any or all of the information described in this

Section 15.04(b) above in the manner that Seller discloses its own

information of like nature so long as Buyer’s information is only so disclosed

in combination with Seller’s information.

 

(c)   The

restrictions under this Section 15.04 on the use or disclosure of such

information shall not apply to such information:

 

(i)    which

is independently developed by Seller following the Closing or is lawfully

received free of restriction from another source having the right to so furnish

such information; or

 

(ii)   after

it has become generally available to the public by acts not attributable to

Seller or its employees, agents or contractors; or

 

(iii)  which

Buyer agrees in writing is free of such restrictions; or

 

(iv)  which

is requested pursuant to a judicial or governmental request, requirement or

order under law, provided that Seller provides Buyer with sufficient prior

notice in order to contest such request, requirement or order or seek protective

measures.

 

15.05       Upon

Buyer’s request, Seller shall provide to Buyer information regarding whether

any third party identified by Buyer has been licensed under one or more

Assigned Patents or under any other Transferred Intellectual Property, and the

terms

 

17

 

under which such third party was licensed, to enable Buyer to evaluate

whether such license would impair Buyer’s ability to enforce one or more of the

Assigned Patents or any other Transferred Intellectual Property against such

third party.

 

15.06       In

the event of any conflict between the representations in this Agreement and the

representations and warranties in the Purchase Agreement, the representations

and warranties in the Purchase Agreement shall prevail.

 

ARTICLE XVI

GENERAL

PROVISIONS

 

16.01       Consideration. 

The consideration for the transfers, assignments and grant of rights and

licenses under this Agreement by Seller to Buyer is provided in the Purchase

Agreement and no further payment of royalties will be due under this Agreement.

 

16.02       Agreement Prevails. 

This Agreement shall prevail in the event of any conflicting terms or legends,

which may appear on documents, the Software, the Documentation, the Patents or

the Technical Information hereunder.

 

16.03       Relationship

Between Parties.  Neither Party to this Agreement shall have the power

to bind the other by any guarantee or representation that it may give, or to

incur any debts or liabilities in the name of or on behalf of the other Party.  The Parties acknowledge and agree that

nothing contained in this Agreement shall be deemed or construed to constitute

or create between the Parties hereto a partnership, association, joint venture

or other agency.

 

16.04       Entire Agreement. 

This Agreement, the Purchase Agreement and Collateral Agreements set forth the

entire agreement and understanding between the Parties as to the subject matter

hereof and merges all prior discussions between them, and none of the Parties

shall be bound by any conditions, definitions, warranties, modifications,

understandings or representations with respect to such subject matter other

than as expressly provided herein, or as duly set forth on or subsequent to the

Effective Date hereof in writing and signed by a proper and duly authorized

representative of the Party to be bound thereby.

 

16.05       Headings. 

Section and subsection headings contained in this Agreement are inserted for

convenience of reference only, shall not be deemed to be a part of this

Agreement for any purpose, and shall not in any way define or affect the

meaning, construction or scope of any of the provisions hereof.

 

16.06       Further Actions. 

Each Party agrees to execute, acknowledge and deliver such further instruments,

and to do all such other acts, as may be necessary or appropriate in order to

carry out the purposes and intent of this Agreement.

 

18

 

16.07       Governing Law. 

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE

WITH THE LAWS OF THE STATE OF NEW YORK IRRESPECTIVE OF THE CHOICE OF LAWS

PRINCIPLES OF THE STATE OF NEW YORK, AS TO ALL MATTERS, INCLUDING MATTERS OF

VALIDITY, CONSTRUCTION, EFFECT, ENFORCEABILITY, PERFORMANCE AND REMEDIES.

 

16.08       Force Majeure. 

Neither Party shall lose any rights hereunder or be liable to the other Party

for damages or losses on account of failure of performance by the defaulting

Party if the failure is occasioned by government action, war, fire, explosion,

flood, strike, lockout, embargo, act of God, or other cause beyond the

reasonable control of the defaulting Party, provided that the Party claiming

force majeure has exerted commercially reasonable efforts to avoid or remedy

such force majeure.

 

16.09       Waiver. 

Except as specifically provided for herein, the waiver from time to time by

either of the Parties of any of their rights or their failure to exercise any

remedy shall not operate or be construed as a continuing waiver of the same or

of any other of such Party’s rights or remedies provided in this Agreement.

 

16.10       Severability. 

If any term, covenant or condition of this Agreement or the application thereof

to any Party or circumstances shall, to any extent, be held to be invalid or

unenforceable, then the remainder of this Agreement, or the application of such

term, covenant or condition to parties or circumstances other than those as to

which it is held invalid or unenforceable, shall not be affected thereby and

each term, covenant or condition of this Agreement shall be valid and be enforced

to the fullest extent permitted by law.

 

16.11       Section 365

(n).  All rights and licenses granted under or pursuant to this

Agreement by a Party to the other Party are, and shall otherwise be deemed to

be, for purposes of Section 365(n) of the United States Bankruptcy Code,

11 U.S.C. Section 101, et seq. (the “Bankruptcy Code”), licenses of

rights to “intellectual property” as defined under Section 101(56) of the

Bankruptcy Code.  The Parties agree that

each Party, as licensees of such rights and licenses, shall retain and may

fully exercise all of their respective rights and elections under the

Bankruptcy Code; provided such Party abides by the terms of this Agreement.

 

16.12       Except

as otherwise agreed in this Agreement, in the Purchase Agreement, or in a

Collateral Agreement, Buyer and Seller shall have no right or interest

whatsoever in any product of the other Party whether such product is conceived

or developed by the other Party, during or after the course of performance of

this Agreement, the Purchase Agreement or any Collateral Agreement.  Nothing in this Agreement shall be construed

to obligate Buyer or Seller to a specified level of effort in its promotion and

marketing of any product.

 

16.13       The

Parties hereto have endeavored to create restrictions which are reasonable as

to duration, geography and scope of activity which do not violate any laws,

 

19

 

rules or regulations. 

Nonetheless, the Parties agree that in the event a court or arbitrator renders

a final order or award which shall determine that any provision is

unenforceable, the Parties agree that the invalidity or unenforceability of any

such provision shall not in any way affect the validity or enforceability of

any other provision of this Agreement except those of which the invalidated or

unenforceable provision comprises an integral part of or are otherwise clearly

inseparable from such other provisions.

 

16.14       Execution in

Counterparts.  This Agreement may be executed in any number of counterparts,

each of which shall be deemed an original, but all of which together shall

constitute one and the same instrument.

 

ARTICLE

XVII

DISPUTE

RESOLUTION

 

17.01       The

Parties agree that, except as expressly provided hereunder, the provisions of

Section 10 of the Purchase Agreement shall govern any dispute between the

parties hereunder.

 

ARTICLE

XVIII

NOTICES

AND STATEMENTS

 

18.01       Until

further notice in writing, any notice or other communication hereunder shall be

deemed to be sufficiently given to the addressee and any delivery hereunder

deemed made when sent by certified mail to the addresses set out below.

 

	

  For Agere:

  	

   

  	

  Agere Systems

  
	

   

  	

   

  	

  Intellectual Property

  
	

   

  	

   

  	

  Attn:  Contract Administrator

  
	

   

  	

   

  	

  9333

  South Young Parkway

  
	

   

  	

   

  	

  Orlando,

  Florida 32819-8698

  
	

   

  	

   

  	

  United States of America

  
	

   

  	

   

  	

   

  
	

  For

  Agere Guardian:

  	

   

  	

  Agere

  Systems Guardian Corporation

  
	

   

  	

   

  	

  Intellectual

  Property

  
	

   

  	

   

  	

  Attn:  Contract Administrator

  
	

   

  	

   

  	

  9333

  South Young Parkway

  
	

   

  	

   

  	

  Orlando,

  Florida 32819-8698

  
	

   

  	

   

  	

  United States of America

  
	

   

  	

   

  	

   

  

 

20

 

	

  With

  a copy to:

  	

   

  	

  Agere

  Systems Inc.

  
	

   

  	

   

  	

  Attn:  Vice President - Law

  
	

   

  	

   

  	

  555

  Union Boulevard

  
	

   

  	

   

  	

  Allentown,

  PA 18109

  
	

   

  	

   

  	

  United

  States of America

  
	

   

  	

   

  	

  Facsimile:  (610) 712-5336

  
	

   

  	

   

  	

   

  
	

  For

  Buyer:

  	

   

  	

  Lattice

  Semiconductor Corporation

  
	

   

  	

   

  	

  5555

  N.E. Moore Court

  
	

   

  	

   

  	

  Hillsboro,

  Oregon 97124—6421

  
	

   

  	

   

  	

  Attention:  General Counsel

  
	

   

  	

   

  	

  Facsimile:  (503) 268-8077

  
	

   

  	

   

  	

   

  
	

  With

  a copy to:

  	

   

  	

  Wilson

  Sonsini Goodrich & Rosati

  
	

   

  	

   

  	

  Professional

  Corporation

  
	

   

  	

   

  	

  650

  Page Mill Road

  
	

   

  	

   

  	

  Palo

  Alto, California 94304

  
	

   

  	

   

  	

  Attention:  Selwyn B. Goldberg, Esq.

  
	

   

  	

   

  	

  Facsimile:  (650) 493-6811

  

 

21

 

IN WITNESS WHEREOF, each of the

Parties has caused this Agreement to be executed by its duly authorized

representative on the respective dates entered below.

 

	

  AGERE SYSTEMS INC.

  
	

   

  	

   

  
	

  By:

  	

   

  	

  /s/ Gerard deBlasi

  
	

  Name:

  	

  Gerard deBlasi

  
	

  Title:

  	

  Vice President — Intellectual Property

  
	

  Date:

  	

  January 18, 2002

  
	

   

  	

   

  
	

  AGERE

  SYSTEMS GUARDIAN  CORPORATION

  
	

   

  	

   

  
	

  By:

  	

   

  	

  /s/ Gerard deBlasi

  
	

  Name:

  	

  Gerard deBlasi

  
	

  Title:

  	

  Vice President

  
	

  Date:

  	

  January 18, 2002

  
	

   

  	

   

  
	

  LATTICE

  SEMICONDUCTOR CORPORATION

  
	

   

  	

   

  
	

  By:

  	

   

  	

  /s/ Steve Laub

  
	

  Name:

  	

  Steve Laub

  
	

  Title:

  	

  President

  
	

  Date:

  	

  January 18, 2002

  
					

 

 

THIS AGREEMENT DOES NOT BIND OR OBLIGATE ANY PARTY

IN

ANY MANNER UNLESS DULY EXECUTED BY AUTHORIZED

REPRESENTATIVES

OF ALL PARTIES

 

 

 

APPENDIX A

 

Definitions

Appendix

 

“3000 series FPGAs” means the family of Field Programmable Gate

Arrays (FPGAs) listed in Appendix H and associated Information and

Documentation.

 

“Affiliate” has the meaning set forth in the Purchase Agreement.

 

“Assigned Marks” means the marks specifically set forth in

Schedule A in Appendix G hereto which are assigned to Buyer by Agere in the

performance of this Agreement to the extent such marks are owned by Seller and

to which Seller has the right to transfer as of the Effective Date of this

Agreement.

 

“Assigned Patents” means the issued patents, pending

applications and/or docketed invention disclosures owned by Seller as of the

Effective Date as specifically listed on Appendix F hereto, and all foreign

counterpart patents or applications claiming priority therefrom.

 

“Assigned Software” means the Code and associated Documentation

(including Code and associated Documentation constituting or associated with

software design tools, FPSC design kits, software for internal development

tools, test software, but excluding the Code and associated Documentation

constituting the IP Cores licensed hereunder) that is (i) owned by Seller

or its Related Companies, and currently used primarily for the purpose of

operating the FPGA/FPSC Business, or (ii) identified in Appendix B to this

Agreement.

 

“Assigned Technical Information” means Information (including

business information, product development materials and Documentation, product

requirements, product design databases, product validation records, product

design revision histories, information relating to test fixtures, information

relating to test equipment, reliability records, product reliability monitor

data and reports, including customer reports and failure information, but

excluding any Information constituting the IP Cores licensed hereunder) that is

(i) owned by Seller or its Related Companies as of the Effective Date, and

currently used primarily for the purpose of operating the FPGA/FPSC Business,

or (ii) identified in Appendix D hereto. 

Unless otherwise noted in the relevant Appendix of the Asset Purchase,

Assigned Technical Information includes Technical Information embodied in any

of the tangible assets of Seller assigned to Buyer under the Purchase Agreement

(e.g., fixtures and equipment) so long as, the Technical Information is owned

by Seller or its Related Companies.

 

“Buyer Licensed Patent(s)” means every patent (including utility

models but excluding design patents and design registrations) issued or having

enforceable rights in any country of the world prior to the Effective Date or

which issues at any time after the Effective Date on applications filed on or

before the Effective Date (or which is entitled

 

2

 

to a filing date prior to the Effective Date) in any

country of the world, and which, at Effective Date, Buyer has ownership or

control of and has the right to grant licenses granted herein, but only to the

extent of such right, without the payment, or granting of any consideration, by

Buyer to any third party.

 

“Business Employees” has the meaning assigned in the Purchase

Agreement.

 

“FPGA/FPSC Business” has the meaning assigned in Purchase

Agreement.

 

“Capture Period” has the meaning assigned in Section 10.04

hereof.

 

“Closing” has the meaning assigned in the Purchase Agreement.

 

“Code” shall mean Object Code and Source Code in tangible and

electronic form, collectively.

 

“Competing Use” means any field, activity or use within the

scope of the limitations set forth in Section 5.10 (the “Non-compete”)

of the Purchase Agreement.

 

“Derivative Work(s)” shall mean any work of authorship that is

based, in whole or in part, upon one or more pre-existing works, such as a

revision, modification, translation, abridgment, condensation, expansion or any

other form in which such pre-existing works may be recast, transformed or

adopted and which, if prepared without authorization of the owner of the

copyright in such pre-existing work, would constitute a copyright

infringement.  For purposes of this

Agreement, a Derivative Work shall also include any compilation that

incorporates such a pre-existing work.

 

“Documentation” shall mean all information in human and/or

machine-readable form, relating to Code, including user manuals and materials

useful for design (for example, logic manuals, flow charts, and principles of

operation).

 

“Effective Date” has the meaning assigned in Recital A hereof.

 

“Foundry Device”  means a Semiconductive Device which a

Party and/or its Related Companies manufactures for a third party wherein the

design of such device is furnished to a Party and/or its Related Companies by

such third party.

 

“IP Cores” are hard cores and/or soft cores included in and/or

provided with a FPGA or FPSC product, including the IP Cores listed on

Appendices C and K.

 

“Information” shall mean any and all documented and undocumented

information (excluding Patents and Patent applications), including Code,

Documentation, maskworks, net lists, test vectors, test algorithms, technical

information, data and drawings of whatever kind in whatever medium,

specifications, know-how, formulae, compositions, processes, designs, sketches,

photographs, graphs, drawings, samples, non-patented

 

3

 

inventions, discoveries, and ideas, past and current manufacturing and

distribution methods and processes, current and anticipated customer

requirements, price lists, part lists, customer lists, market studies, business

plans, database technologies, systems, structures, architectures, improvements,

devices, concepts, methods and information, however documented, and any and all

notes, analysis, compilations, studies, summaries, and other material containing

or based, in whole or in part, on any information included in the foregoing.

 

“Intellectual Property” has the meaning set

forth in the Purchase Agreement.

 

“Licensed Field” means any and all fields in which Buyer is

currently engaged or in which Buyer may hereafter engage; provided that, prior

to the third anniversary of the Closing Date, the Licensed Field shall exclude

(i) the use by Buyer of Seller’s IP Cores licensed to Buyer hereunder in a

Semiconductive Device that include an array of programmable gates and

interconnects where the array occupies less than forty percent (40%) of the

area of the die and (ii) any mask programmed device that is not:  (a) a functional substitute and

substantially pin-to-pin compatible for an FPGA/FPSC Product that has been

previously sold by Buyer or Seller to a customer, (b) used in a product by

such customer, and (c) exclusively provided to such customer solely for

use with such customer’s product. 

Buyer’s exercise of rights granted hereunder to make, use, sell, offer

for sale, have made, lease or import mask programmed devices shall not be

exercised in a manner so that the exercise of such rights is a sham to allow

Buyer to avoid the above restrictions so as to allow Buyer to make, use, sell,

offer for sale, have made, lease or import ASICs during the period when such

restrictions apply.

 

“Licensed Software” means the Code and associated Documentation

including IP Cores, software for Software Design Tools, FPSC design kits,

software for internal development tools, and test software, and other Code;

owned by Seller or for which Seller has a right to license to Buyer without any

cost to Agere (subject to Section 14.04); that is or has been used in or

is necessary for the use in the operation of, the FPGA/FPSC Business or IP

Cores provided after the Closing Date, according to the terms hereof, in FPGA

and FPSC products within the Licensed Field; and that is not Assigned Software,

including the Code identified herein in Appendix C.

 

“Licensed Technical Information” means Information, including

Information relating to IP Cores, owned by Seller or for which Seller has a

right to license to Buyer without any cost to Seller (subject to

Section 14.04); that is or has been used in or is necessary for the use in

the operation of the FPGA/FPSC Business or that is necessary for the use of IP

Cores listed in Appendix C or K in FPGA and FPSC products within the Licensed

Field and which is not Assigned Technical Information, including the

Information identified herein in Appendix E.

 

“Mask Set Revision” means any change for any reason to any one

or more mask(s) in the complete set of photomasks that are utilized for wafer

fabrication of the FPGA/FPSC Products.

 

4

 

“Object Code” shall mean code in machine-readable form generated

by compilation, assembly or other translation of Source Code and contained in a

medium which permits it to be loaded into and operated on by a computer.

 

“Patents” means Assigned Patents and Licensed Patents, collectively.

 

“FPGA/FPSC Product(s)” means any product, but not 3000 Series

FPGAs, of a design including an array of programmable gates and interconnects

which array occupies at least forty percent (40%) of the area of the die of a

Semiconductive Device, existing, manufactured and sold directly by the

FPGA/FPSC Business, including those devices as specifically listed in Appendix

I hereto.  For the purposes of this

Agreement, such term shall include future generations, derivatives or

improvements of such products excluding IP Cores.

 

“PLD” mean a Programmable Logic Device as

defined in Section 5.10(b) of the Purchase Agreement.

 

“Purchase Agreement” has the meaning assigned in Recital A

hereof.

 

“Purchased Assets” has the meaning assigned in the Purchase

Agreement.

 

“Related Companies” means (i) with respect to Buyer, its

Subsidiaries and Affiliates, (ii) with respect to Agere-Guardian, means

its Subsidiaries, its parent, Agere and Subsidiaries of Agere, with the

exception of Agere-Guardian, and (iii) with respect to Agere, its

Subsidiaries.

 

“Restricted FPGA/FPSC Product” means a Semiconductive Device

that includes an array of programmable gates and interconnects where the array

occupies more than twenty (20)  percent of the area of the die of such

device.

 

“Seller Licensed Patent(s)” means every patent (including

utility models but excluding design patents and design registrations) issued or

having enforceable rights in any country of the world prior to the Effective

Date, or which issues at any time after the Effective Date on applications

filed on or before the Effective Date (or which is entitled to a filing date

prior to the Effective Date) in any country of the world, and which, at

Effective Date, Seller has ownership or control or otherwise has the right to

grant the licenses granted herein, but only to the extent of such right.

 

“Semiconductive Device” means a unitary or integrated electronic

device formed of a single type of semiconductive material, such device being

either in wafer, die, or finished form or the circuit elements, including

cores, in such a device.  A

Semiconductive Device in finished form shall include any terminals and housing

(and any environmental control elements within the housing) integral to such device.

The term Semiconductive Device shall not include (1) an electronic device or

integrated circuit that includes parts that are capable of movement relative to

each other in operation, (2) an electronic circuit device in which a power

supply or component with magnetic core is included on or integral with

 

5

 

the wafer or housing, or (3) a unitary or integrated device that is

primarily an optical or opto-electronic device.  A Semiconductive Device shall not lose its character as such

whether or not it is part of an assemblage of such electronic devices or other

devices, but the term does not mean such assemblage nor does it include

circuits formed by the assemblage.  For

the purposes of the licenses granted herein, a Semiconductive Device also includes

all Code and systems used in the design, programming and testing of a

Semiconductive Device including any Code constituting a soft core or for use in

conjunction with a FPSC, FPGA or PLD.

 

“Software” means Assigned Software and Licensed Software, collectively.

 

“Source Code” shall mean code in any programming language

contained in any format, including human and machine-readable formats, such

code including all comments and procedural code plus all related development

documents such as, but not limited to, flow charts, schematics, statements of

principles of operations or any other specifications.

 

“Subsidiary” of a company means a corporation or other legal

entity (i) more than fifty percent (50%) of whose shares or other

securities entitled to vote for election of directors (or other managing

authority) is now or hereafter controlled by such company either directly or

indirectly; or (ii) which does not have outstanding shares or securities

but more than fifty percent (50%) of whose ownership interest representing the

right to manage such corporation or other legal entity is now or hereafter

owned and controlled by such company either directly or indirectly; but any

such corporation or other legal entity shall be deemed to be an Subsidiary of

such company only as long as such control or ownership and control exists.

 

“Technical Information” means Assigned Technical Information and

Licensed Technical Information, collectively.

 

“Technical Assistance Period” means the

period beginning on the Closing Date and ending (A) three and one half

(3-1/2) years after the Closing Date with respect to IP Cores delivered as

of the Closing Date and (B) with respect to IP Cores delivered after the

Closing Date the later to occur of (x) the end of the foregoing three-and-one-half

(3-1/2) year period and (y) two (2) years after the delivery of an IP

Core following the Closing Date in accordance with Section 10.02 but in no

event later than seven (7) years after the Closing Date.

 

“Trademarks” means the Assigned Marks.

 

 

6

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