Document:

EXHIBIT 10.42

ORIGINAL EQUIPMENT MANUFACTURER (“OEM”) AGREEMENT

This agreement (“Agreement”) is effective on December 1st, 2005, (the “Effective Date”) between
Texas Instruments Incorporated, a Delaware corporation acting through DLP®
Products (“TI”) and InFocus Corporation, 
a Oregon corporation (“OEM”), and its wholly- owned subsidiaries.

I.                                         SCOPE

1.1  Product Sales and Resale
by OEMs:  This Agreement provides the
terms under which TI will sell complete DLPTM component sets (“Products”) and
will license the Licensed Software (as defined below) to OEM. OEM will use the
Products in manufacturing or in having manufactured projected image display
systems (“Applications”) or, subject to the licensing requirement set forth
below, subassemblies for Applications, to be commercially marketed under OEM’s
brand or any third party brand under license to OEM.  *   OEM
may sell subassemblies containing the Products only to customers who have
executed appropriate trademark and software licenses with TI.  OEMs wholly-owned subsidiaries may make
purchases under and are considered to be parties to this Agreement. However, in
the event any OEM wholly-owned subsidiary does not meet its payment obligations
hereunder in a timely fashion, OEM will be responsible for payment of any such
outstanding obligations.

1.2  Sales to OEM’s
Subcontractors:  From time to time TI and OEM may
agree as to one or more subcontractors to OEM that are authorized to make
purchases on OEM’s behalf under this Agreement (“Authorized Subcontractors”). Such
Authorized Subcontractors may purchase
goods under this Agreement provided that the Authorized Subcontractor:  a) meets TI’s then current credit
requirements; b) certifies to TI in writing that it is purchasing Products on
behalf of OEM and that all Products will be used solely on OEM’s contracted
work; and c) agrees in writing to keep all pricing confidential. Pricing shall
remain confidential between TI, OEM and the Authorized Subcontractor. OEM will
provide a written list of Products and estimated quantities that it expects
each Authorized Subcontractor to purchase on its behalf.

1.3  Product Specification.
TI owns and controls the Product(s) specification. TI will be solely
responsible for the design and manufacture of the Product(s). OEM owns and
controls the Application specifications.

II.            COMMERCIAL TERMS

2.1       Purchase Orders. Requests
to purchase shall be submitted by purchase orders.  *   If
OEM cancels an order, TI reserves the right to charge a cancellation fee *  of any uncancelled orders to take into
account  *  price adjustments, based on  * 
volume pricing, for product already shipped prior to receipt of OEM’s
cancellation notice. If
OEM’s actual volume purchases are  *  the required cumulative volumes provided in
the price quotation, TI reserves the right to invoice OEM under the payment
terms of this Agreement for  *  necessary to adjust for  * 
based on actual volumes shipped by TI. The OEM purchase order
will reflect only quantity, Product(s) description, unit price, extended
price, desired shipment date, transportation carrier requirements, and shipping
and invoice addresses. Any other terms and conditions reflected in OEM purchase
order will not apply unless expressly accepted in writing by TI. TI will
invoice OEM upon shipment of Product(s).

2.2.      Shipping Dates:  Shipping dates provided by TI are  *  . TI
will make reasonable efforts to notify OEM if shipping dates will be delayed,
but TI shall not be liable for any loss or expense incurred by OEM if TI fails
to meet the estimated shipping dates. OEM may reschedule the shipping date as
follows.

Products scheduled to ship beyond   *  
may be rescheduled.

*  % of goods
schedule to ship within   *   may be rescheduled.

No goods scheduled to ship within   *  may
be rescheduled, unless agreed to at TI’s sole discretion.

In the event that OEM’s
reschedule affects pricing or shipment schedule terms of a volume order, TI may
adjust the price of unshipped orders to reflect reduced volumes.

2.3           Taxes and Duties. The prices
for the Product(s) do not include taxes. OEM is solely responsible for the
payment of all taxes, levies, customs or duties of any nature whatsoever with
respect to this Agreement, other than taxes based on TI’s net income.

2.4       Payment Terms. Payment terms are
*  days from the date of invoice subject
to OEM’s available and continued credit as determined by TI’s credit department. TI reserves the right to
withdraw credit, cancel any open sales order, refuse to enter further purchase
orders and withhold shipment if OEM fails to make payment pursuant to these
payment terms. In the event OEM returns any Product(s) to TI pursuant to Section 2.6,
OEM agrees to remit payments for Product(s) not affected by OEM’s claim.

2.5   Shipping and Risk of Loss. Shipments
are FCA, TI point of shipment, (except for shipments within the United States
which will be FOB TI point of shipment) with all transportation costs being the
responsibility of OEM unless otherwise specified in this Agreement. TI will
typically ship freight collect, but may ship prepaid and invoice OEM in some
circumstances. Title and risk of loss or damages to the Product(s) shipped
will pass to OEM upon TI’s tender of the Product(s) delivery to the
carrier. TI will pack the Product(s) for shipment to OEM using commercial
practices appropriate for the type of Product(s) being sold pursuant to
this Agreement, unless otherwise instructed in writing by OEM and at OEM’s
expense.

2.6   Limited Warranty. THE FOLLOWING ARE IN LIEU OF
ALL CONDITIONS OR WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT
LIMITED TO, ANY IMPLIED CONDITION OR WARRANTY OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE AND OF ANY OTHER WARRANTY OBLIGATION ON THE PART OF
TI.

*  Certain information on this page has
been omitted and filed separately with the Commission. Confidential treatment
has been requested with respect to the omitted portions.

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2.6.1  Product(s). Subject
to clause 2.6.3 below, and unless otherwise provided in Attachment A,
Nonstandard Warranty Parts, TI
warrants that the Product(s) will conform 
either to TI’s published specifications for such Products or other
mutually agreed upon written specifications signed by an authorized TI
representative  *  . Notwithstanding the foregoing, TI shall not
be liable for any defects that are caused by neglect, misuse or mistreatment by
an entity other than TI, including improper installation or testing or
unauthorized repair, or for any Products that have been altered (including
substitution of components in any component set) or modified in any way by an
entity other than TI. Moreover, TI shall not be liable for any defects that
result from Buyer’s design, specifications or instructions for such Products. Testing
and other quality control techniques are used to the extent TI deems necessary.
 Any replacement Product(s) returned
to OEM for warranty purposes is provided with a 
*  warranty from the date of TI
shipment or the balance of the original warranty period, whichever is greater.
Continued use or possession of the Product(s) after expiration of the
applicable warranty period will be conclusive evidence that the warranty is
fulfilled to the full satisfaction of OEM. OEM will not pass through or assign
to any third party any warranties made by TI hereunder and will expressly
indicate to its end-users, customers or any other third party that such person
will look solely to OEM in connection with any problems, warranty claims or
other matters concerning any of OEM’s end-product(s) containing the
Product(s).

2.6.2  Software.  Subject to clause 2.6.3 below, TI warrants
for  * 
from the date of purchase that the media (if the Licensed Software is
provided on media) will be free from defects and that the Licensed Software
will substantially conform to the related documentation. Licensed Software is
otherwise provided “AS-IS”, without any warranty, express or implied. TI
expressly disclaims any warranty with respect to any title or infringement or
non-infringement of any third party rights, or as to the absence of competing
claims, or as to interference with OEM’s quiet enjoyment of the Licensed
Software. TI does not warrant that the functions contained in the Licensed
Software will be free from error or will meet OEM’s specific requirements. TI
will have no liability for errors or product malfunction resulting from OEM’s
use, modification, copying, or distribution of the Licensed Software. OEM
acknowledges that any statements contained in any documentation or materials
provided by TI or any statements regarding the utility of the Licensed Software
do not create any express warranties, rather OEM is relying upon its own
analysis and evaluation of the Licensed Software.

2.6.3  Testing Requirements; Assistance. OEM
agrees that prior to using or distributing any systems that include Products
and/or Licensed Software, OEM will thoroughly test such systems and the
functionality of such Products and/or Licensed Software as used in such systems.
TI may provide technical, applications or device advice, quality
characterization, reliability data or other services. OEM agrees that providing
these services shall not expand or otherwise alter TI’s warranties, as set
forth, and no additional obligations or liability shall arise from TI providing
such services.

*

TI’S
WARRANTIES AS HEREINABOVE SET FORTH WILL NOT BE ENLARGED, DIMINISHED OR
AFFECTED BY, AND NO OBLIGATION OR LIABILITY WILL ARISE OR GROW OUT OF, TI’S
RENDERING OF TECHNICAL ADVICE, INFORMATION AND/OR SERVICE TO OEM IN CONNECTION
WITH THE PRODUCTS OR LICENSED SOFTWARE FURNISHED  HEREUNDER.

2.7       Return Material
Authorization. All OEM Product(s) returns to TI must be accompanied by
a properly completed Return Material Authorization (“RMA”) form. If any Product(s) is
returned to TI different than those on the RMA form, TI reserves the right to
return such Product(s) at OEM expense, or otherwise dispose of it, without
credit. TI will not be responsible for any costs associated with the return of
the Product(s) if OEM returns the Product(s) by means other than
those instructed by TI.

2.8       Exclusive Remedy.
If Product(s) does not conform to the 
warranties as contained herein, TI’s sole and exclusive maximum
liability will be:  i) for
Product(s),  (at TI’s option) to either
repair, replace, or credit OEM’s account for any Product(s) returned by
OEM to TI during the warranty period, or, ii) for Licensed Software, to provide
OEM with a new copy of the Licensed Software provided that; (a)         OEM promptly notifies TI in writing
upon discovery by OEM that such Product(s) failed to conform to the
specification with an explanation of any alleged nonconformance; (b) the
Product(s) or Licensed Software are returned to TI FCA TI’s plant from
which the Products or Licensed Software were shipped; (c) TI’s examination
of the Product(s) or Licensed Software shall disclose that the alleged
deficiencies actually exist and were not caused by accident, misuse, neglect,
alteration (including substitution of components in the component set),
improper installation, unauthorized repair or improper testing.; and (d) OEM
is in full compliance with this Section  If the Product(s) or
Licensed Software fail to conform to the warranty, TI shall reimburse OEM for
the transportation charges paid by OEM for returning the Product(s) or
Licensed Software.  If TI replaces the
Product(s), it will replace it with new Product if the OEM notifies TI of the
nonconformance within  *  of the date of shipment from TI. If TI elects
to repair or replace the Product(s), it shall have a reasonable time to make
the repair or replacement.

2.9   Evaluation Items. From time-to-time,
TI may provide to OEM samples, pre-production or experimental goods or
materials for evaluation purposes. These items may have been manufactured by
someone other than TI. They may be used only for evaluation purposes and may
not be re-sold in any form. Such items are provided “AS-IS”. Use of or reliance
on such evaluation items is at OEM’s risk. TI MAKES NO WARRANTIES, EXPRESS OR
IMPLIED, BY OPERATION OF LAW OR OTHERWISE, INCLUDING WITHOUT LIMITATION,
WARRANTIES OF TITLE, NONINFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A SPECIFIC
PURPOSE. TI SHALL HAVE NO LIABILITY TO OEM OR ANYONE ELSE FOR ANY DAMAGES
ARISING FROM THE EVALUATION ITEMS OR THE USE THEREOF.

*  Certain information on this page has
been omitted and filed separately with the Commission. Confidential treatment
has been requested with respect to the omitted portions.

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III.           INTELLECTUAL PROPERTY AND LICENSES

3.1   Branding, Advertising, Trademarks and
Trade Names. TI grants OEM a nonexclusive, nontransferable, non-assignable,
revocable, * , personal  license to use
the Trademarks (defined hereafter) associated with the Product(s) solely
in connection with Applications. Grant of this license is contingent upon the
following conditions being met; (1) All goodwill associated with the use
of the Trademarks inures to the benefit of TI; (2) OEM uses the Trademarks
only on Applications that at least meet the quality standards customary in the
industry of the Applications. TI, at its expense and at reasonable intervals,
has the right to inspect or test any of the Applications to determine whether
they meet the required quality standards. At TI’s request, OEM (a) provides
TI with representative samples of each use of the Trademarks, including without
limitation the Application(s), graphics, text materials, packaging and users
manuals and (b) provides technical assistance deemed necessary by TI to
determine the quality of the Application(s); (3) OEM does not use TI’s
Corporate Signature or the TI Corporate Logo in its advertising and promotion
of its end-product(s);  (4)  *  in accordance with the Brand Guidelines
published by TI, a copy of which may be obtained at www.dlp.com/brand. OEM
likewise requires its customers to display the Trademarks in the customers’
advertising, merchandising and documentation. Such customer advertising,
merchandising and documentation shall be in accordance with the Brand
Guidelines. If TI adopts any new or revises such policies, OEM agrees to
cooperate in reasonable respects to implement such revised policies and OEM
will require its customers at all tiers to do likewise;  (5) OEM will ensure that neither the TI
name nor the Trademarks are displayed in any manner, which may imply: (a) that
OEM or its customer is owned or controlled by TI, in whole or in part; (b) that
TI is not the exclusive owner of TI’s name and Trademarks; or (c) that TI
and OEM or its customer are not separate an independent entities; (6) OEM
does not (a) alter or modify the Trademarks in any way, (b) integrate
the Trademarks into any of OEM’s trademarks, logos, designs, nor (c) use
any marks or logos that are confusingly similar to the Trademarks; (7) OEM
does not remove or alter any tag, label or other identifying marks placed by TI
on the Product(s); (8) If at any time, OEM acquires any rights in or
registration(s) or application(s) for the Trademarks, OEM
immediately, at no expense to TI, assigns such rights, registrations or
applications to TI, along with TI’s rights in the Trademarks. If the Trademarks
on OEM products will be held to infringe trademarks of any third party and OEM
will be enjoined from using same, TI will exert all reasonable efforts at its
expense to procure for OEM the right to use such trademark free of any
liability. OEM agrees that it will inform TI of any possible trademark
infringement which comes to its attention. When requested by TI, OEM will
deliver to TI any papers and assist in conducting any legal proceedings at TI’s
expense which TI deems necessary in order to protect its Trademarks. TI
reserves the right to terminate, restrict or withhold use of the Trademarks if
TI, at its sole discretion, determines that the image quality of performance
does not enhance TI’s goodwill.

3.2       Software License. From time to time, TI may provide to OEM
electronic information including development tools, test software, memory
files, programmable logic description code or other hardware description code,
in various forms including executable software, binary data, and textual data
files (“Licensed Software”). Unless a separate license has been executed by the
parties for any particular Licensed Software, the following terms and other
terms of this Agreement which relate to Licensed Software shall apply. TI
grants and OEM accepts the following non-exclusive, non-assignable,
non-transferable, licenses subject to the following conditions:

3.2.1        A
license to use and copy the Licensed Software, during the term of this
Agreement, solely in conjunction with the development, production and sale of
OEM’s Applications incorporating the Products.

3.2.2        A
license to distribute portions of the Licensed Software intended by TI to be
incorporated in OEM’s Applications, only in binary format and during the term
of this Agreement, provided such portions are incorporated in OEM’s
Applications incorporating the Products.

3.2.3        OEM
agrees that, except as specifically permitted by statute by a provision that
cannot be waived by contract, it will not 
* versions of the Licensed Software, and will use its best efforts to
prevent any person or entity with which it is affiliated from doing so.

3.2.4        OEM
shall reproduce on copies of the Licensed Software all copyright notices
exactly as and where they appear on the Software Tools as delivered, or as
closely as possible where a change in media precludes exact reproduction.

3.2.5        OEM
acknowledges and agrees that the scope of the software licenses granted herein
is limited to the TI-owned intellectual property rights embodied in the
Licensed Software provided by TI to OEM. Except as expressly provided herein,
no other license, express or implied, by estoppel or otherwise, to any other
TI-owned or third party-owned intellectual property rights is granted herein.

Except as expressly provided
herein, OEM may not distribute, publish, rent or lease the Licensed Software or
grant sublicenses. OEM agrees to use the Licensed Software solely within the
scope of the licenses set forth herein, to employ reasonable security
precautions to prevent unauthorized disclosure of the Licensed Software to any
third party and to maintain the confidentiality of trade secrets and
confidential information embodied in the Licensed Software.

3.3   Ownership Rights in
Intellectual Property. Notwithstanding any other provision in this
Agreement, TI retains the ownership of all copyright, patent, trademark,
service mark, trade name, trade secret rights and all other proprietary rights
in the Product(s) and Licensed Software. Title to the Licensed Software
shall be and remain with TI and its licensors. OEM will not mortgage, pledge or
encumber the Licensed Software in any way.

*  Certain information on this page has
been omitted and filed separately with the Commission. Confidential treatment
has been requested with respect to the omitted portions.

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3.4   Patent Indemnification.
TI  * on a  *  that
the Product(s) manufactured and supplied by TI to OEM constitutes  *  of
any duly issued patent from the  *  patent office, and, TI   * 
awarded therein against OEM, provided that TI is promptly informed and
furnished a copy of each communication, notice or other action relating to the  *  and is given authority, information and
assistance (at TI’s expense) necessary to defend or settle said suit or
proceeding and OEM makes available to TI the benefit of any defense available
to OEM to any  *   hereunder. Such defense including, but not
limited to, any license or option to license or sub-license any intellectual
property right that is the subject of such infringement allegation. Use of such
defense shall be  *  , solely for the purposes of defending or
settling said suit or proceeding, and shall not expand the OEM intellectual
property licensed or cross-licensed to any third party. TI  *   to
defend or be liable for costs and damages if the infringement arises out of
compliance with OEM specifications or incorporation of OEM technology, designs,
hardware and/or software in the Product(s), or from a combination with, an
addition to, or a modification of the Product(s) after delivery by TI, or
from use of the Product(s), or any part thereof, in the practice of a process
that is not inherent in the Product(s). TI’s obligations hereunder  *  to
any infringement occurring after OEM has received notice alleging the
infringement   *  . In addition, TI will  *  , at
its  * 
and at  *  , (a) to procure for OEM the right to
use such Product(s) free of any liability for patent infringement or (b) to  *  such
Product(s) with a  *  substitute otherwise complying substantially
with all the requirements of this Agreement or (c)  *   the purchase price and the transportation
costs of such Product(s). If infringement by OEM is alleged, TI   *   to
make further shipments of the Product(s)  *  of this Agreement, and provided TI has not
been enjoined from selling said Product(s) to OEM,  *   to
supply said Product(s) to OEM at OEM’s option, whereupon the patent
indemnity obligations herein stated with respect to TI  * 
apply with respect to OEM, this indemnity by OEM applying to, but not
limited to, all damages awarded under 35 U.S.C. Sections 284 and 285. If any
suit or proceeding is brought against TI based on a claim that the Product(s) manufactured by TI and supplied
to OEM in compliance with OEM’s end-product(s) specifications or by reason
of the incorporation of OEM’s technology, designs, hardware, and/or software in
the Product(s) infringe any duly issued patent from the  * 
patent office, then the patent indemnity obligations herein stated with
respect to   *   apply with respect to OEM.

OTHER THAN A JUDICIALLY IMPOSED
IMPLIED LICENSE BASED ON THE PRINCIPLES OF EXHAUSTION AND FIRST SALE, THE SALE
BY TI OF THE PRODUCT(S) ORDERED HEREUNDER DOES NOT GRANT TO, CONVEY OR
CONFER UPON OEM OR OEM’S CUSTOMERS, OR UPON ANYONE CLAIMING UNDER OEM, A
LICENSE, EXPRESSED OR IMPLIED UNDER ANY PATENT RIGHTS OF TI OR ANY THIRD PARTY
COVERING OR RELATING TO ANY COMBINATION, MACHINE OR PROCESS, IN WHICH SAID
ITEMS MIGHT BE OR ARE USED.

THE FOREGOING STATES THE SOLE AND
EXCLUSIVE LIABILITY OF THE PARTIES HERETO FOR PATENT INFRINGEMENT.

3.5           Confidentiality. Any
information disclosed by one Party to the other Party deemed by the disclosing
Party to be confidential or proprietary information will be disclosed and
protected in accordance with the terms and conditions of the Nondisclosure
Agreement between TI and OEM, dated December 1st,  *   (the “NDA”). Notwithstanding the expiration
date provided in the NDA, the term of the NDA will not expire until the
termination or expiration of this Agreement in accordance with Section 4.1.

IV.                     GENERAL
PROVISIONS.

4.1           Term and Termination.

4.1.a                 Term. This Agreement expires three
years from the Effective Date. 

4.1.b                 Termination for Cause. This Agreement
may be *  in the event either party  *  the
Agreement and such  *   corrected within  * 
after written notice is given to the party   *   by
the party  *  . Unless otherwise indicated in writing by
the party  * , upon termination of this
Agreement, all activities under this Agreement will terminate.

4.1.c                 Termination for Convenience. TI or
OEM   *  
this agreement for any reason upon  
*   written notice to the other
party.

4.1.d  
            Rights and
Obligations Upon Termination or Expiration. For each party, all obligations
and duties arising and any licenses granted under this Agreement will terminate
upon the termination or expiration of this Agreement unless otherwise provided.
Each party shall pay any sums owed and accrued prior to termination and
expiration. In the event this Agreement is terminated for convenience by TI or
OEM, any Product(s) scheduled for shipment as of the date of the written
notice of such termination pursuant to Subsection 4.1.c will be
completed; however, any purchase orders placed by OEM   *  
period following such written notice may 
be accepted for shipment by TI as agreed by both parties.

4.2       Limitation of
Liability. UNDER NO CIRCUMSTANCES WILL TI
BE LIABLE TO OEM FOR ANY INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL
DAMAGES (INCLUDING, BUT NOT LIMITED TO, COSTS OF REMOVAL AND REINSTALLATION OF
ITEMS OR SOFTWARE, PROCUREMENT OF SUBSTITUTE GOODS OR SOFTWARE, OUTSIDE
COMPUTER TIME, LABOR COSTS, LOSS OF DATA, LOSS OF GOODWILL, LOSS OF REVENUES OR
PROFITS, INTERRUPTION OF BUSINESS, LOSS OF USE, OR OTHER ECONOMIC LOSS OR
INJURY TO PERSONS OR PROPERTY) ARISING OUT OF ANY BREACH OF THIS AGREEMENT, OR
THE USE OF THE GOODS PROVIDED HEREUNDER, WHETHER SUCH DAMAGES ARE LABELED IN
TORT, CONTRACT, OR INDEMNITY, EVEN IF TI HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGE.  *   THE EXISTENCE OF MORE THAN ONE CLAIM WILL NOT
ENLARGE OR EXTEND THESE LIMITS.

4.3           Critical and Military Applications.
   The Products provided under this
Agreement are not designed and are not warranted to be suitable for use in
life-support applications, devices or systems or other applications invoking
potential risks of death, personal injury or severe property or environmental
damage. Further, Products are not designed and are not warranted to be suitable
for use in some military applications and/or military environments. Use of
Products in such applications or environments is understood to be fully at the
risk of OEM.

*  Certain information on this page has
been omitted and filed separately with the Commission. Confidential treatment
has been requested with respect to the omitted portions.

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4.4           Export Restrictions. Unless
prior authorization is obtained from the U.S. Department of Commerce, neither
the OEM nor its affiliates will knowingly export, re-export, or release,
directly or indirectly, any Product(s), technology or software (as defined in Part 772
of the Export Administration Regulations of the U.S. Department of Commerce (“EAR”))
received from TI, or export, directly or indirectly, any direct product of such
Product(s), technology or software (as defined in Part 734 of EAR), to any
destination to which the export, re-export or release of the  Product(s), technology or software or direct
product is prohibited by EAR. OEM has provided the assurances herein in
compliance with Part 740 (Technology and Software Under Restriction) of
EAR. OEM will obtain any necessary license or other documentation prior to the
exportation or re-exportation of any Product(s), technology or software
acquired under this Agreement or any direct product of any such Product(s),
technology or software. OEM will not sell, export, re-export or otherwise
dispose of any such Product(s), technology or software to any third party
prohibited by U.S. or applicable non-U.S. laws. OEM will give notice of the
need to comply with the foregoing to any third party believed to have the
intention of exportation. Each Party will obtain, at its own expense, licenses
and other documents as necessary to fulfill its obligations hereunder. If
necessary licenses or other documentation cannot be obtained, TI may terminate
this Agreement and be excused from performing hereunder. This provision shall
survive the termination, expiration or cancellation of this Agreement.

4.5       Entire
Agreement/Modification. This Agreement is intended as the complete, final
and exclusive statement of the terms of the agreement between the parties
regarding the subject matter hereof and supersedes any and all other prior or
contemporaneous agreements or understandings, whether written or oral, between
them relating to the subject matter hereof, including the OEM Basic Transaction
Agreement effective 29 June 2001 and the DLP Configuration Software Object
Code License Agreement effective 21 March 2000. Neither Party will be
bound by any modification of this Agreement or supplemental agreement unless
such modification is in writing and signed by an authorized representative of
the Party to be bound thereby.

4.6       Force Majeure. Neither Party will
be liable by reason of any delay in the performance of its obligations due to
strikes, riots, fires, explosions, acts of God, war, governmental action or any
other cause, which is beyond the reasonable control of such Party. The
performance of such party will be excused for such reasonable time as may be
required to resume performance following the cessation of such cause.

4.7   Notices. Any notices required or
permitted to be given under this Agreement will be in writing and deemed valid
and sufficient if delivered in person, by express courier service or by
facsimile transmission (provided a confirmation of transmission is received) to
the addresses set forth below or any other subsequent address of which a party
provides notice.

	
  Texas Instruments
  Incorporated:

  	
   

  	
   

  	
   

  	
   

  
	
  DLP® Products

  	
   

  	
  InFocus Corporation

  	
   

  	
   

  
	
  6550 Chase Oaks
  Blvd., MS 8478

  	
   

  	
  27700B SW Parkway Ave

  	
   

  	
   

  
	
  Plano, TX 75023

  	
   

  	
  Wilsonville, Oregon 97070

  
	
  Attention:
  Contracts Manager

  	
   

  	
  Attention:

  	
   

  	
  Ms. Cheryl Rath

  
	
  Telephone: (214)
  567-0236

  	
   

  	
  Telephone:

  	
   

  	
  (503) 685-8616

  
	
  Fax: (214) 567-7859

  	
   

  	
  Fax:

  	
   

  	
  (503) 685-8433

  
							

 

4.8       Assignment. *   nor any rights or obligations
hereunder,  *  by either party  *  of
the non-assigning party, which approval will not be unreasonably withheld. A
prohibited assignment will be deemed to include, but not be limited to,
transactions involving a change-in-control, merger (or otherwise by operation
of law), reorganization, and sale of all or substantially all of the assets or
equity of either party. Any attempted assignment in  *  of
this Section will be  *  .

4.9       Governing Law. This Agreement and
matters connected with its performance will be governed and construed in
accordance with the laws of the State of Texas, without giving effect to such
state’s conflict of law principles. Each party hereby irrevocably consents to
the jurisdiction of the courts located in Texas. The parties agree that the
United Nations Convention on Contracts for the International Sale of Goods is
specifically excluded from application to this Agreement.

4.10     Survival. Those provisions which, by
their nature, continue beyond expiration or termination on a particular date,
shall be deemed to survive expiration or termination of this Agreement.

4.11               Publicity.
Neither party will publicly announce or disclose the existence or terms and
conditions of this Agreement without the prior written consent of the other
Party.

4.12               Attachments.

Attachment A — Nonstandard Warranty Parts

*  Certain information on this page has
been omitted and filed separately with the Commission. Confidential treatment
has been requested with respect to the omitted portions.

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ATTACHMENT A

NONSTANDARD WARRANTY PARTS

	
  PRODUCT DESCRIPTION

  	
   

  	
  WARRANTY

  
	
   

  	
   

  	
   

  
	
  150MM
  DMD’s including but not limited to .7XGA, Matterhorn, HD2

  	
   

  	
  *

  

 

*  Certain information on this page has
been omitted and filed separately with the Commission. Confidential treatment
has been requested with respect to the omitted portions.

 6Exhibit 10.17

April 3, 2006

Nick Antonopoulos

4355 Montmorency Court

San Jose, CA 95118

Dear Nick:

ZiLOG, Inc. (“ZiLOG or the “Company”) is pleased
to offer you the assignment of Executive Vice President Worldwide Sales,
reporting to Jim Thorburn, Chief Executive Officer. You will be an Executive
Officer of the Company and therefore subject to Section 16 of the
Securities Exchange Act of 1934.

Your salary will be $20,833.33 per month which equates
approximately to an annual salary of $250,000 and a monthly car allowance of
$550 per month. All payments per this paragraph are gross before applicable
taxes and required withholdings.

ZiLOG is offering you a guaranteed bonus, in lieu of
your incentive plan for your first six months of continuous full-time regular
employment in the amount of $87,500.00 which is 70% of your base salary. This
will be paid out in two payments of $43,750. The first payment of $43,750 will
be paid following your first three months of employment and your second payment
of $43,750 will be paid following the first six months of employment. All
normal statutory tax deductions and other withholdings will be deducted from
these payments.

	
  1st Payout

  After first 3 Months

  	
   

  	
  2nd Payout

  After first 6 Months

  	
   

  	
  Total

  
	
  $43,750.00

  	
   

  	
  $43,750.00

  	
   

  	
  $87,500.00

  

 

Note:  This
payout guarantee has the following stipulations. It will be pro-rated based on
any leave of absence. It will not be paid out if any gross mis-conduct or other
“for cause” termination results. The payout will be calculated based on the
annual salary in this offer letter dated April 3, 2006. All amounts are
less any applicable taxes and other required withholdings. You must be a
full-time regular employee with continuous employment at the end of the first
three months of employment to receive the first payout and at the end of the
first six months of employment to receive the second payout.

Following your first six-month period of employment,
you will then become eligible to participate in the ZiLOG Incentive Program.
Your incentive rate will be 60% of “earned” base pay at the 100% target level
which will be paid out quarterly based on achieving certain revenue and design
win targets. You will receive a separate letter formalizing the details of this
incentive plan once you become eligible to participate.

The Company will recommend to its Board of Directors
to grant you the following:

1.)    At a
Compensation Committee meeting, the Company will recommend to its Board of
Directors to grant you the option to purchase 70,000 shares of ZiLOG common
stock at fair market value (closing price) on the date of grant. If approved,
such stock options would typically have a four-year vesting schedule starting
on your date of grant and an exercise price equal to ZiLOG’s closing common
stock price on the date of the grant. The options will be subject to the terms
and conditions of the applicable stock option plan and/or stock option
agreement.

2.)    If after
six months of continuous regular full-time employment status and strong
performance, the Company will again recommend that that its Board of Directors
grant you the option to purchase an additional 70,000 shares of ZiLOG common
stock at fair market value (closing price) on the date of grant. If approved,
such stock options would typically have a four-year vesting schedule starting
on your date of grant and an exercise price equal to ZiLOG’s closing common
stock 

 1
 

price on the date of the
grant. The options will be subject to the terms and conditions of the
applicable stock option plan and/or stock option agreement.

If a change in control of the Company occurs within
50% of your unvested stock options will immediately vest at the time of the
change in control.

In your first year rather then the policy accrual of
80 hours, you will approximately start accruing 120 hours vacation up until
your sixth year of service. Then, after six years of service you would begin
following the vacation accrual policy which is adding a day for each year of
service and follow all other policy guidelines. Policy guidelines for vacation
are per POL053: Vacation Policy.

Your company benefits are effective as of your first
day of employment, with the exception of Long Term Disability (LTD) which
commences on your 31st day.

This offer is contingent upon the results of your
reference/background check and educational transcript request. If you choose to
accept this offer, you will be an at-will employee of ZiLOG. This means that
either you or the Company may terminate your employment at any time, with or
without notice and with or without cause. The at-will nature of your employment
cannot be modified except by in writing signed by both you and one of the
following Company representatives:  Head
of HR, CFO, or the CEO. You will be required to adhere to all of ZiLOG’s
policies and procedures which are resident on ZiLOG’s Intranet system under the
heading “ZiDOC”. You are responsible for familiarizing yourself with these
policies as soon as possible and on a regular basis going forward.

The Immigration Reform and Control Act prohibits
employers from knowingly hiring anyone who is not eligible to work in the
United States. This law also states that all individuals hired will be required
to satisfy an employment verification procedure, as described in the enclosed I-9
document.

This offer letter dated April 3, 2006 is the only
agreement concerning your compensation, benefits and all ZiLOG’s obligations to
you and they supersede any prior agreements or understandings concerning such
matters, whether oral or written. Please acknowledge your acceptance of this
offer by signing and returning this offer letter within one (1) week from
the date of this letter.

We
look forward to your participation as part of the ZiLOG team.

	
  Sincerely,

  	
   

  	
   

  
	
  /s/ MAY JEFFERSON

  	
   

  	
  April 3, 2006

  
	
  May Jefferson

  Director of Global Human Resources

  	
   

  	
  Date

  

 

I
accept this offer of employment and the terms of this letter.

	
  /s/ NICK
  ANTONOPOULOS

  	
   

  	
  April 10, 2006

  	
   

  	
  April 24, 2006

  
	
  Signature

  	
   

  	
  Date

  	
   

  	
  Start Date

  

 

 2

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