Document:

exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is entered into by and between Capital Corp of
the West, a California bank holding company (“CCOW” or “Company”) and Richard Cupp, as of August
15, 2008 (the “Effective Date) and shall be in effect for the period of one year, subject to
renewal for such term as may be agreed upon by the parties. This Agreement by and between the
Company and Executive (collectively referred to as the “Parties”) is intended, where applicable,
to comply with section 409A of the Internal Revenue Code of 1986, as amended (“Code”). While
following execution this Agreement shall be effective as of the Effective Date, it shall not be
executed by the parties or become effective until all required regulatory approvals have been
received.

     1. Duties and Executive Position.

     Executive is hereby employed as the President and Chief Executive Officer of CCOW and Chief
Executive Officer of County Bank. Executive shall perform the customary duties of a Chief
Executive Officer for a California bank holding company, including but not limited to supervision
of Company’s business and all subsidiary corporations and businesses owned or related to Company
and such other duties as may from time to time be reasonably requested of Executive by the Board
of Directors of Company (“Board”). As used herein the term “business of Company” shall include the
business of any of Company’s subsidiaries and related entities.

     2. Appointment to Company’s Board of Directors.

     Company hereby agrees that Executive shall remain a member of the Board for so long as
Executive is elected to a position on the Board by the shareholders of Company and this Agreement
has not been terminated. During the period of Executive’s election to the Board, Executive shall
serve as a member of any or all committees to which he is appointed, except the current Audit
Committee and Compensation Committee and any future Board committees which require only independent
directors. Executive also hereby agrees to accept appointment to other boards of directors and
committees of subsidiary and related organizations of Company, except such committees that require
an independent director. Executive shall fulfill all of Executive’s duties as a Board and committee
member without additional compensation. Except as otherwise expressly provided by the terms of this
Agreement, upon the termination of Executive’s employment under this Agreement by either Executive
or Company, Executive’s service on the Board, all committees of the Company, all corporate offices
of Company, and all of Company’s subsidiaries and related companies shall be immediately terminated
without further corporate action; further, all fringe benefits, such as insurance, shall be
terminated on the last day of service of Executive, unless otherwise expressly provided by the
terms of this Agreement, Company’s personnel policy, or any other benefit policies and programs in
effect at the time of such termination.

     3. Arbitration.

     To the fullest extent permitted by law all controversies between Executive and Company,
including whether any termination is with or without cause, will be submitted for resolution to

 

 

binding arbitration in accordance with the Employment Rules of the American Arbitration
Association. This means that, except as otherwise stated, both the Company and the Executive
understand that arbitration will be their exclusive forum for resolving disputes between them, and
that both parties waive their entitlement, if any, to have controversies between them decided by a
court or a jury. This provision shall not apply to any claim or controversy with respect to or
arising out of any employee benefit plan or program of the Company to the extent that such plan or
program requires participants, beneficiaries and other claimants to follow certain claims
procedures specified therein.

     4. Extent of Service.

     Throughout his employment with the Company as President and Chief Executive Officer,
Executive shall donate his full time, attention, and energies to the business of Company and shall
not be engaged in any other business activities, except personal investments, without the prior
written consent of Company.

     5. Regular Compensation.

     In consideration for the services which Executive is to render under this Agreement, Company
shall pay to Executive a base salary (“Base Salary”) at the annual rate of Five Hundred Thousand
Dollars ($500,000). The Base Salary shall be payable to Executive in equal semi-monthly
installments on the company’s normal payroll schedule.

     6. Annual Incentive Compensation.

     The maximum target bonus for the first year shall equal 150% times Base Salary, comprised of
three components: (i) the Guaranteed portion; (ii) the Performance Criteria portion; and (iii) the
Strategic Criteria portion. At the end of the first twelve months, Executive shall be paid a bonus
of $250,000 (the “Guaranteed” portion) which is guaranteed. The remaining target bonus for the
first year shall be performance based comprised of $250,000 to be awarded based on mutually agreed
upon performance criteria (the “Performance Criteria” portion) and $250,000 to be awarded based on
achievement of strategic criteria (the “Strategic Criteria” portion). The Performance Criteria and
Strategic Criteria shall be established not more than 30 days following the execution of this
Agreement. The target bonus to which Executive is entitled shall be paid within 30 days of the
first anniversary of the Effective Date of this Agreement or within 30 days following the
termination of Executive’s employment, whichever is sooner.

     If this Agreement is renewed for a second year, the target bonus for the second year shall
equal 100% of Base Salary and shall be based entirely on mutually agreed performance criteria. The
award of the bonus for the second year shall be based on the determination of the Compensation
Committee of the Board of Directors that Executive has met or exceeded the performance criteria.

     Executive shall also be entitled to participate in any incentive programs which may be adopted
from time to time by Company for Executive, subject to the terms thereof. Amounts

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awarded to Executive under any said incentive program shall be determined at the sole discretion
of Company, including the vesting of any incentive awards.

     7. Business Expenses.

     Executive shall be reimbursed for all ordinary and necessary, documented expenses in
conformance with company policy. Request for reimbursement of other expenses should be presented
to the board in advance for approval. In addition, the company will provide suitable housing and
related housing expenses for the Executive.

     8. Automobile.

     Company shall purchase or lease an automobile of the Executive’s choice for his use as Chief
Executive Officer at an “out the door” cost not to exceed $55,000. Company shall pay all fuel,
operating, maintenance, and insurance costs. Executive shall be entitled to limited use of the
automobile for personal use, but shall primarily use it for business purposes associated with his
employment. As the Chief Executive Officer of Company, Executive has been provided an automobile
for the convenience of Company. Company expects the Executive will frequently visit Company’s
various business locations, customers, business partners, vendors, regulatory agencies, ratings
and market making agencies and travel for trade associations in which Company is actively engaged.
Upon termination of employment, automobile is to be returned to the company in good condition on
the final date of employment.

     9. Vacation.

     During his employment Executive shall be entitled to vacation leave at full salary at the
discretion of Executive as time allows, so long as it is reasonable and does not jeopardize his
responsibilities, of twenty (20) business days per annum; provided that Executive shall take as a
portion of his vacation leave at least ten (10) consecutive business days per annum, unless
otherwise waived by the Board.

     10. Disability.

     If Executive becomes disabled (as defined in section 409A of the Code) during his employment
with Company pursuant to the terms of this Agreement, Company agrees to continue Executive’s Base
Salary (i) for ninety (90) days from commencement of the disability or (ii) until Executive is
able to return to work whichever is less.

     11. Insurance.

     Company shall provide to Executive, for the benefit of Executive and his eligible spouse,
during Executive’s employment with Company pursuant to this Agreement and at Company’s expense the
same medical insurance, dental insurance, and disability insurance coverage, if any, which may be
offered to Company’s other full-time Executives under any benefit plans as may be in effect from
time to time.

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     The parties acknowledge that Executive’s Base Salary has been set high enough under this
Agreement so that Executive may pay for additional life insurance that would exceed the maximum
company benefit. However, Executive shall have the right to determine whether to maintain life
insurance and use part of his Base Salary to cover the premiums thereon, or to use the Base Salary
for other purposes. Company shall have no duty under this Agreement to give Executive any
additional compensation to cover life insurance premiums or to maintain any life insurance on
Executive’s life.

     12. Stock Options.

          (a) As part of the consideration for entering this Agreement, the Board has
agreed to grant Executive 100,000 incentive stock options on or about the Effective Date. The
stock option grant will vest as follows: 20% shall vest 12 months after the grant date.
Thereafter
the options will vest 20% per year on the anniversary of the grant date. Options will be
totally
vested in five years. Stock Options will immediately vest and become exercisable upon the
following: 1. Termination by the Company without “cause” as defined in Section 19 below, 2.
Termination by the Executive for “good reason” as defined in Section 19 below or 3.
Completion of this Agreement (as defined in Section 19(d)).

          (b) Such stock options shall be granted pursuant to and subject to the terms of
the 2002 Stock Option Plan, as amended and shall be subject to such other terms as determined
by the Board as may be set forth in the stock option award agreement.

          (c) Additional annual stock option grants may be recommended by the
Compensation Committee subject to the approval of the Board of Directors.

     13. Retirement Plans. Executive shall be entitled to participate in any retirement
plans offered to other Executives of the company, such as Executive’s participation in Company’s 401(k) plan and ESOP.

     14. Printed Material.

     All written, printed, electronic, visual or audio materials used by Executive in performing
duties for Company, other than Executive’s personal notes and diaries, are and shall remain the
property of Company. Upon termination of employment on any basis, Executive shall return all such
materials to Company.

     15. Disclosure of Information.

     In the course of employment, Executive may have access to confidential information and trade
secrets relating to Company’s business. Except as required in the course of employment by Company,
Executive shall not, without Company’s prior written consent, directly or indirectly disclose to
anyone any confidential information relating to Company or any financial information, trade secrets
or “know-how” that is germane to Company’s business and operations.

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Executive recognizes and acknowledges that any financial information concerning any of Company’s
customers, as it may exist from time to time, is strictly confidential and is a valuable, special
and unique asset of Company’s business. Executive shall not, either before or after termination of
this Agreement, disclose to anyone said financial information, or any part thereof, for any reason
or purposes whatsoever.

     16. Prohibited Activities and Investments.

     During Executive’s employment with Company pursuant to this Agreement, Executive shall not,
directly or indirectly, either as an Executive, Company, consultant, agent, principal, partner,
principal stockholder (i.e., ten percent or more) or corporate officer, directly, or in any other
individual or representative capacity, engage or participate in any business competitive with that
of Company.

     17. Surety Bond.

     Executive agrees to furnish all information and take any other steps necessary to enable
Company to obtain and maintain a fidelity bond conditional on the rendering of a true account by
Executive of all moneys, goods, or other property that may come into the custody, charge, or
possession of Executive during Executive’s employment. The surety company issuing such bond and
the amount of the bond must be acceptable to Company. All premiums on the bond are to be paid by
Company. If Executive cannot personally qualify for a surety bond at any time during the
Executive’s employment with Company pursuant to this Agreement, Company shall have the option to
terminate this Agreement immediately and said termination shall be deemed to be a termination for
cause under section 19(a) herein.

     18. Moral Conduct.

     Executive agrees to conduct himself at all times with due regard to public conventions and
morals and to abide by and reflect in his personal actions all of the “core values” adopted by
Company and its subsidiaries from time to time. Executive further agrees not to do or commit any
act that will reasonably tend to degrade him or to bring him into public hatred, contempt or
ridicule, or that will reasonably tend to shock or offend any community in which Company engages
in business, or to prejudice Company or the banking industry in general.

     19. Termination of
Agreement.

          (a) Termination for Cause.

     Company reserves the right to terminate this Agreement “for cause.” Termination for cause
shall include termination because of Executive’s (i) personal dishonesty, (ii) incompetence, (iii)
willful misconduct, (iv) breach of fiduciary duty involving personal profit, (v) material breach of
any of the terms of this Agreement, (vi) substantial failure to perform assigned duties, (vii)
willful violation of any law, rule or regulation (other than traffic violations or similar
offenses) or final cease-and-desist order, or (viii) the willful or permanent breach by Executive
of any obligations owed to Company pursuant to this Agreement. In addition,

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Company reserves the right to terminate this Agreement “for cause” in the event that actions are
effected by any regulatory agency having jurisdiction to remove or suspend Executive from office,
or upon the directive of any such regulatory agency that Company must remove Executive as its
Chief Executive Officer, regardless of whether such directive is given orally or in writing.

          (b) Statutory Grounds for Termination.

     Executive’s employment under this Agreement shall terminate immediately upon the occurrence
of any of the following events, which events are described in sections 2920 and 2921 of the
California Labor Code:

	 	(1)	 	The occurrence of circumstances that make it
impossible or
impractical for the business of Company to be continued.

	 
	 	(2)	 	The death of Executive.

	 
	 	(3)	 	The loss of Executive’s legal capacity. This
does not affect
Executive’s rights under section 10 of this Agreement.

	 
	 	(4)	 	The loss by Company of legal capacity to contract.

	 
	 	(5)	 	Subject to section 10 of this Agreement, the
continued incapacity
on the part of Executive under this Agreement, unless waived by
Company.

          (c) Definition of Good Reason.

As used in this Agreement, the term Good Reason means the occurrence of any of the following
provided, however, that any such event or condition shall cease to constitute a Good Reason two
years following its initial existence:

(1) A material diminution in Executive’s Base Salary;

(2) A material diminution in Executive’s authority, duties, or responsibilities;

(3) A requirement that Executive report to a corporate officer or employee instead of
reporting directly to the Board of Directors of the Company.

(4) A change in the Executive’s principal work location to any location that is more
than 50 miles from Executive’s current work location on the date of this Agreement; or

(5) Any other action or inaction that constitutes a material breach of this Agreement by
the Company.

Notwithstanding the foregoing, the Executive shall not be considered to have terminated employment
for Good Reason (i) unless he provides written notice to the Company of the

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existence of the event or condition constituting Good Reason within 90 days of its initial
existence, or (ii) if the Company remedies such event or condition within 30 days of receipt of
such notice.

          (d) Completion of Agreement

     The Executive’s employment under this Agreement will terminate on the one year anniversary of
the effective date of this Agreement unless extended or renewed by the written agreement of
parties. “Completion of the Agreement” means Executive’s performance of his duties under this
Agreement through the later of (i) the end of the first one year term or (ii) if the Company
requests that the parties renew or extend this Agreement on substantially the same terms, through
the end of the second one year term (or such shorter renewal term as the parties mutually agree).

     20. Bonus Calculation and Severance Pay

          (a) (Bonus Calculation) If the Company terminates this Agreement without
cause, or if the Executive terminates the agreement for good reason, the Executive will
receive
his base salary through the date of termination and the annual target bonus; provided,

          (i) during the first one year term, the Executive will receive the
Guaranteed portion of $250,000 plus, if the Strategic Criteria are met, the
Strategic Criteria portion ($250,000), plus, any amount related to the Performance
 Criteria portion (up to $250,000) which shall be determined by the Board’s
Compensation Committee; and

          (ii) after the first one year term, the Executive is eligible to receive the
target bonus of up to $500,000 which shall be determined by the Board’s
Compensation Committee based upon mutually agreed performance criteria.

Payment of incentive bonus under this Section 20(a) is in lieu of the annual incentive bonus to
which Executive would have been entitled under Section 6 if this Agreement had continued to the
end of its then current term. In no case will Executive receive both an annual incentive bonus
under Section 6 and any payment under this Section 20(a) with respect to the same period of
employment.

          (b) (Severance Pay) If the Company terminates this Agreement without cause,
or if Executive terminates the Agreement for Good Reason, or upon Executive’s completion of
the Agreement, the Executive also will receive a lump sum severance payment of $500,000 plus,
a performance based severance payment of $250,000. The performance based severance award
shall be conditioned on a finding by the Compensation Committee of the Company’s Board of
Directors that Executive during the first year has achieved both the Performance Criteria and
the
Strategic Criteria or after the first year that Executive has achieved applicable performance
criteria.

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          (c) For the avoidance of uncertainty: if the Executive refuses to renew or extend this
Agreement on substantially similar terms for a period not to exceed one year at the request of the
Company after the initial one year term, Executive will be entitled to the annual incentive bonus
under Section 6 for the first one year term but will not be entitled to any additional payment
under Section 20(a) or to any severance under Section 20(b); and if this Agreement terminates (i)
pursuant to Section 19(b) of this Agreement, (ii) by Company “for cause” (pursuant to Section
19(a) of this Agreement), or (iii) because of the death, incapacity or disability of Executive,
Executive shall not receive any annual incentive bonus under Section 6 or Section 20(a) or any
severance under Section 20(b).

          (d) Payments under the terms of this Section 20 are subject to regulatory approval pursuant
to Part 359 of the FDIC Rules and Regulations.

     21. Cooperation with Company After Termination of the Executive’s Employment.

     Following termination of the Executive’s employment, Executive shall fully cooperate with
Company in all matters relating to the winding up of his pending work on behalf of Company and the
orderly transfer of any such pending work to other employees of Company as may be designated by
Company, including but not limited to the successor President and Chief Executive Officer of
Company.

     22. Notices.

     Any notice to Company required or permitted under this Agreement shall be given in writing to
Company, either by personal service or by certified mail, postage prepaid, addressed to the
chairman of the Board at its then principal place of business. Any such notice to Executive shall
be given in like manner and, if mailed, shall be addressed to Executive at Executive’s home
address then shown on Company’s files. For the purpose of determining compliance with any time
limit in this Agreement, a notice shall be deemed to have been duly given (a) on the date of
service, if personally served on the party to whom notice is to be given, or (b) the fifth
business day after mailing, if mailed to the party to whom notice is to be given in the manner
provided in this Section.

     23. Nonassignability.

     Neither this Agreement nor any right or interest hereunder shall be assignable by Executive,
his beneficiaries or legal representatives without Company’s prior written consent; provided,
however, that nothing in this Section 23 shall preclude (i) Executive from designating a
beneficiary to receive any benefit payable hereunder upon his death, or (ii) the executors,
administrators, or other legal representatives of Executive or his estate from assigning any
rights hereunder to the person or persons entitled thereto.

     24. No Attachment.

     Except as required by law, no right to receive payments under this Agreement shall be subject
to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge

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or hypothecation or to execution, attachment, levy or similar process or assignment by operation
of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void
and of no effect.

     25. Binding Effect.

     This Agreement shall be binding upon and inure to the benefit of Executive and Company and
their respective permitted successors and assigns. This Agreement shall not become effective and
Executive shall have no rights hereunder prior to receipt of all regulatory approvals from the
Company’s banking regulators.

     26. Modification and Waiver.

          (a) Amendment of Agreement.

     This Agreement may not be modified or amended except by an instrument in writing signed by
the parties hereto.

          (b) Waiver.

     No term or condition of this Agreement shall be deemed to have been waived nor shall there be
any estoppel against the enforcement of any provision of this Agreement, except by written
instrument of the party charged with such waiver or estoppel. No such written waiver shall be
deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate
only as to the specific term or condition for the future or as to any act other than that
specifically waived. No delay in exercising any rights shall be construed as a waiver, nor shall a
waiver on one occasion operate as a waiver of such right on any future occasion.

     27. Entire Agreement.

     The parties hereto acknowledge that each has read this Agreement, understand it, and agree to
be bound by its terms. The parties further agree that this Agreement contains all of the covenants
and agreements between the parties with respect to the employment of Executive by Company. Each
party to this Agreement acknowledges that no representations, inducements, promises or agreements,
orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which
is not embodied herein, and that no other agreement, statement or promise not contained in this
Agreement shall be valid and binding.

     28. Partial Invalidity.

     If any provision in this Agreement is held by a court of competent jurisdiction to be invalid,
void or unenforceable, the provision shall be deemed amended as necessary to conform to applicable
laws or regulations, or if it cannot be so amended without materially altering the intention of the
parties, the remaining provisions shall nevertheless continue in full force without being impaired
or invalidated in any way.

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     29. Governing Law.

     This Agreement shall be governed by and construed in accordance with the laws of the State of
California.

     30. Injunctive Relief.

     Company and Executive acknowledge and agree that the services to be performed under this
Agreement are of a special, unique, unusual, extraordinary and intellectual character which give
them a peculiar value, the loss of which cannot be reasonably or adequately compensated in damages
in an action at law. Company and Executive therefore expressly agree that Company and Executive,
in addition to any other rights or remedies which Company and Executive may possess, shall be
entitled to injunctive and other equitable relief to prevent a breach of this Agreement by
Executive and Company.

     31. Company Regulatory Agencies.

     The obligations and rights of the Parties hereunder are expressly conditioned upon the
approval or non-disapproval of (i) this Agreement and/or (ii) Executive, in the event such
approvals are required, by those banking regulatory agencies which have jurisdiction over Company
or any of its subsidiaries.

     32. Duplicate Originals.

     This Agreement may be executed simultaneously in one or more counterparts, each of which
shall be deemed an original, but all of which together constitute one and the same instrument.

     33. Compliance with Internal Revenue Code Section 409A.

          (a) Company and Executive agree that, notwithstanding anything herein to the contrary, this
Agreement is intended to be interpreted and operated so that the payment of the benefits set forth
herein either shall either be exempt from the requirements of section 409A of the Code or shall
comply with the requirements of such provision. References in this Agreement to section 409A of the
Code include rules, regulations, and guidance of general application issued by the Department of
the Treasury under section 409A of the Code. Executive hereby acknowledges that he has been advised
to seek and has sought the advice of a tax advisor with respect to the tax consequences to
Executive of all payments pursuant to this Agreement, including any adverse tax consequences or
penalty taxes under Code section 409A and applicable State tax law. Executive hereby agrees to bear
the entire risk of any such adverse federal and State tax consequences and penalty taxes in the
event any payment pursuant to this Agreement is deemed to be subject to Code Section 409A, that no
representations have been made to Executive relating to the tax treatment of any payment pursuant
to this Agreement under Code Section 409A and the corresponding provisions of any applicable State
income tax laws, and that in no event shall the Company be liable to Executive for or with respect
to any taxes, penalties or interest which may be imposed upon Executive pursuant to Section 409A.

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          (b) If, on the date of Executive’s Separation from Service, Executive is a
“specified employee”, as defined in section 409A of the Code, of the Company, and if any
payments or benefits under this Agreement payable upon Executive’s Separation from Service
will result in additional tax or interest to the Executive because of section 409A of the
Code, then
despite any provision of this Agreement to the contrary the Executive will not be entitled to
the
payments or benefits until the earlier of (x) the date that is six months and one day after
Executive’s Separation from Service for reasons other than the Executive’s death, and (y) the
date of the Executive’s death. After the end of the period during which payments or benefits
are
delayed under this provision, the entire amount of the delayed payments and benefits shall be
paid to the Executive in a single lump sum, without interest.

          (c) With respect to reimbursements and in-kind benefits made to Executive
pursuant to Sections 8 and 9, if any, which are not otherwise excludible from Executive’s
gross
income, to the extent required to comply with the provisions of section 409A of the Code, no
reimbursement of such expenses incurred by Executive during any taxable year of Executive
shall be made after the last day of the following taxable year, the amount of expenses
eligible for
reimbursement, or in-kind benefits provided, during a taxable year may not affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, and
the
right to reimbursement of such expenses or such in-kind benefits shall not be subject to
liquidation or exchange for another benefit.

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     IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the 27 day of
OCT, 2008.

	 	 	 	 	 
	     COMPANY: 	CAPITAL CORP OF THE WEST

 	 
	 	By:  	/s/ Jerry Callister
 	 
	 	 	Jerry Callister 	 
	 	 	Chairman — Board of Directors 	 
	 
	 	 	 
	     EXECUTIVE: 	  	/s/ Richard S. Cupp
 	 
	 	 	Richard S. Cupp 	 
	 	 	 	 
	 

12exv10w40

Exhibit 10.40

CONFIDENTIAL
TREATMENT REQUESTED

Signature Version

License Agreement

This License Agreement (“Agreement”) is made and entered into as of July 31, 2008 (“Effective
Date”), by and among Transmeta Corporation, a Delaware corporation having an office at 2540 Mission
College Blvd., Santa Clara, CA 95054 (“Transmeta”), NVIDIA Corporation, a Delaware corporation
having an office at 2701 San Tomas Expressway, Santa Clara, CA 95050 (“NVIDIA”) and NVIDIA
International, Inc., a Cayman corporation and Barbados international business company having an
office at Chamberlain Place, Broad Street, Bridgetown, Barbados (“NVIDIA Sub”). NVIDIA Sub is a
wholly owned subsidiary of NVIDIA. Each of Transmeta and NVIDIA are referred to herein as a
“Party” and together as the “Parties”.

RECITALS

          A. NVIDIA wishes to obtain from Transmeta, and Transmeta is willing to grant to NVIDIA,
licenses for NVIDIA to use and exploit certain Transmeta-owned intellectual property in connection
with NVIDIA’s products and in accordance with the terms and conditions of this Agreement.

          B. NVIDIA and Transmeta have previously entered into that certain Design Evaluation Agreement,
dated [* * *], pursuant to which NVIDIA has had the opportunity to evaluate certain Transmeta-owned
materials and become familiar with Transmeta’s technologies related to the intellectual property to
be licensed hereunder.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as
follows:

1. DEFINITIONS

     1.1 “Acquiring Person” means a “person” (as such term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended) that acquires (a) securities representing a
majority of the voting power of all of a Party’s outstanding voting securities or (b) all or
substantially all of a Party’s assets, without regard to the sale of cash or receivables.

     1.2
“Adaptive Power Control” means [* *
*].

     1.3 “Architecture Technology” means Transmeta’s technologies and source materials described in
Exhibit A attached hereto, as they exist as of the Effective Date of this Agreement.

     1.4 “Change of Control” means, with respect to a Party, the occurrence of any of the following
events: (a) any consolidation or merger of such Party with or into any other entity in which the
holders of such Party’s outstanding shares immediately before such consolidation or merger do not,
immediately after such consolidation or merger, retain stock representing a majority of the voting
power of the surviving entity or stock representing a majority of the voting
power of an entity that wholly owns, directly or indirectly, the surviving entity (any such
entity, a “Merger Partner”); (b) the sale, transfer, or assignment of securities of such Party
representing

 

* * *
Confidential treatment will be requested for portions of this
exhibit. Omissions are designated as [* * *]. A complete
version of this exhibit will be filed separately with the Securities
and Exchange Commission.

 

 

Signature Version

a majority of the voting power of all of such Party’s outstanding voting securities to
an Acquiring Person; or (c) the sale of all or substantially all of such Party’s assets, without
regard to the sale of cash or receivables, to an Acquiring Person.

     1.5 “Exploit” means to make, use, sell, offer for sale, import, distribute, lease, license,
and otherwise dispose of or transfer. Other forms of this term (such as “Exploitation”) shall be
interpreted in accordance with the foregoing definition.

     1.6 “Foundry Product” means a product that (a) is designed, in whole or in substantial part,
by a third party (or on behalf of a third party by anyone other than NVIDIA or an NVIDIA
Subsidiary), (b) does not prominently bear an NVIDIA brand, and (c) is manufactured or
reproduced by or on behalf of NVIDIA or a sublicensed Subsidiary of NVIDIA under circumstances
where all or substantially all of such products are sold, licensed, distributed, or otherwise
transferred by NVIDIA or the sublicensed NVIDIA Subsidiary to that third party (or to customers of,
and as directed by, that third party).

     1.7 “Have Made” means to contract with a third party or parties to perform manufacturing
functions or services (including wafer fabrication, testing, and/or packaging services) for NVIDIA
or an NVIDIA Subsidiary.

     1.8 “Intellectual Property Rights” means Patent rights, mask work rights, copyrights and trade
secret rights. Intellectual Property Rights shall not include, and specifically excludes: (i)
rights in and to trademarks, trade names, logos, service marks, and other designations of source;
and (ii) any rights in design patents and design patent applications.

     1.9 “Licensed Patents” means: (a) the patents and patent applications listed on Exhibit
C attached hereto and corresponding foreign counterpart patents and patent applications, if
any; (b) any application for Patent owned or controlled by Transmeta or any of its Subsidiaries in
the future which has not been filed as of the Effective Date but with respect to which Transmeta or
any of its Subsidiaries has, as of the Effective Date, directed patent counsel to prepare a patent
application (including a provisional patent application); and (c) any Patent that claims a priority
date from any Patent covered by clause (a) or (b) above. Licensed Patent does not include, and
specifically excludes, any patent and patent application with respect to which Transmeta or a
Transmeta Subsidiary would be required to pay a fee or other monetary consideration to a third
party in connection with or respect to the grant of a license or the exercise of rights under such
patent or patent application as contemplated herein.

     1.10 “LongRun2 Technology” means Transmeta’s LongRun2 power management and related
technologies described in Exhibit B attached hereto, as they exist as of the Effective Date
of this Agreement.

     1.11 “NVIDIA Field of Use” means and includes the fields of [* * *].

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     1.12 “NVIDIA Product” means:

          (a) excluding Foundry Products, any product that is designed (in whole or in substantial part)
by or on behalf of NVIDIA or an NVIDIA Subsidiary and is manufactured and/or sold by or on behalf
of NVIDIA or an NVIDIA Subsidiary and that consists entirely or primarily of [* * *]; and

          (b) excluding Foundry Products, in the case where [* * *] (“Driver Software”) was jointly
developed by NVIDIA (or an NVIDIA Subsidiary) and a third party (a “Jointly Developed Product”) and
NVIDIA’s contribution to the Jointly Developed Product (which may or may not include some or all of
the Transmeta Technology) comprises [* * *] Driver Software that provides, in addition to the
functionality provided by the Transmeta Technology, substantial functionality beyond that provided
by the third party, then (i) when the Jointly Developed Product is sold, or the Driver Software is
licensed, by NVIDIA or an NVIDIA Subsidiary, the entire Jointly Developed Product will be
considered an NVIDIA Product, and (ii) when the Jointly Developed Product is sold, or the Driver
Software is licensed, by the third party (or any of its subsidiaries) that jointly developed the
product, only that portion of the Jointly Developed Product that was developed by NVIDIA or an
NVIDIA Subsidiary (the “NVIDIA Subsystem”) will be considered an NVIDIA Product (provided, however,
that none of such Jointly Developed Product will be considered an NVIDIA Product if the NVIDIA
Subsystem has no substantial functionality other than Adaptive Power Control).

     1.13 “Patent(s)” means all classes and types of patents (including originals, divisions,
continuations, continuations-in-part, extensions or reissues), and applications for these classes
or types of patents, throughout the world, with the exception of design patents and design patent
applications.

     1.14 “Subsidiary” means any corporation, partnership, limited liability company, or other
entity recognized in any jurisdiction in the world, now or hereafter, in which a Party owns or
controls (either directly or indirectly), now or hereafter, greater than fifty percent (50%) of the
voting power of the outstanding shares or stock or securities entitled to vote for the election of
directors or similar managing authority, or (if such entity does not have voting shares or stock or
other voting securities) greater than fifty percent (50%) of the voting power of the ownership
interest that represents the right to make decisions for such entity. An entity shall be deemed to
be a Subsidiary under this Agreement only so long as the Party to which such Subsidiary relates:
(a) continues to own or control shares, stock, securities or other ownership interest in that
entity at the level required above; and (b) has not contractually or otherwise surrendered or in
any other material way constrained its authority to elect the managing authority or make decisions
for the entity.

     1.15 “Transmeta Technology” means, collectively, the Architecture Technology and the LongRun2
Technology.

     1.16 “Transmeta Technology Deliverables” means the electronic documentation and other computer
files that describe, document, or embody each element of the Transmeta Technology identified in
Exhibit A or Exhibit B.

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2. LICENSE

     2.1 License Grant. Subject to the terms and conditions of this Agreement, Transmeta,
on behalf of itself and its Subsidiaries, grants to NVIDIA a worldwide, nonexclusive, perpetual,
irrevocable and non-terminable (except as expressly provided in Section 8.2), nontransferable and
non-assignable (except as set forth in Section 14.1), non-sublicensable (except as set forth in
Section 2.2) and fully-paid-up license under all of the Licensed Patents and all Intellectual
Property Rights in the Transmeta Technology and Transmeta Technology Deliverables owned or
controlled by Transmeta or any of its Subsidiaries, to:

          (a) Exploit and Have Made NVIDIA Products; and

          (b) use, reproduce, modify, and create derivative works of the Transmeta Technology
Deliverables in connection with the design, development, manufacturing, testing, distribution,
and/or sale of NVIDIA Products.

If any action on the part of any Transmeta Subsidiary is necessary to make the license grant above
fully effective, Transmeta shall ensure that such Subsidiary takes such action.

     2.2 Sublicensing. NVIDIA has the right to sublicense any (or all) of the license
rights granted in Section 2.1 to any one or more NVIDIA Subsidiaries. NVIDIA, however, will be
responsible for the acts and omissions of each and every such NVIDIA Subsidiary with respect to the
terms and conditions of this Agreement as if they were acts and omissions of NVIDIA itself. NVIDIA
also has the right: (a) to sublicense to suppliers (including foundries and other contract
manufacturers) any or all of the license rights granted in Section 2.1, solely as necessary for
NVIDIA or any of its Subsidiaries to exercise the Have Made rights granted above; and (b) to
sublicense to NVIDIA’s and its Subsidiaries’ direct and indirect customers and NVIDIA’s and its
Subsidiaries’ distributors the rights to use and, in the case of distributors, distribute, sell,
offer for sale, lease, and license the NVIDIA Products furnished by NVIDIA or its Subsidiary.
NVIDIA may distribute and disclose the Transmeta Technology Deliverables to any Subsidiary or other
authorized sublicensee, solely for such entity’s use in the exercise of the rights sublicensed to
it by NVIDIA, subject to the terms of Section 9 below.

     2.3 Limitations. NVIDIA expressly acknowledges that the license rights granted in
Sections 2.1 and 2.2 above are subject to the following limitations, restrictions, and conditions,
and agrees to abide by all such limitations, restrictions, and conditions, as follows:

          (a) The licenses granted under this Agreement do not authorize NVIDIA, or any sublicensed
NVIDIA Subsidiary, to manufacture (or have manufactured) products on behalf of any third party as a
foundry, contract manufacturer, or in any similar capacity. By way of illustration and without
limiting the foregoing, NVIDIA is not authorized to practice or use the Licensed Patents, Transmeta
Technology, or Transmeta Technology Deliverables to make or Have Made any products based on any
design that (in whole or in substantial part) has been provided to NVIDIA by a third party, where
such products are to be supplied substantially exclusively to such third party or substantially
exclusively to customers of, and as directed by, such third party.

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          (b) In the event of any assignment or transfer to a third party of this Agreement by NVIDIA,
whether by operation of law, in connection with a Change of Control, or otherwise (for example and
without limitation, in connection with or as a result of a merger of NVIDIA into a third party or
the acquisition of NVIDIA’s assets by a third party), the licenses granted under this Agreement
shall not extend to cover any pre-existing products of the Merger Partner or Acquiring Person, any
subsequent versions thereof that are substantially based upon the design of such pre-existing
products of the Merger Partner or Acquiring Person, or any later-released products of the Merger
Partner or Acquiring Person that are not substantially based on a product that was an NVIDIA
Product immediately prior to the assignment or other transfer of this Agreement. However, for
avoidance of doubt, the licenses granted under this Agreement will continue to apply to the NVIDIA
Products as they existed immediately prior to such assignment or transfer and to any subsequent
versions thereof that are substantially based upon the design of such pre-existing NVIDIA Products.

          (c) NVIDIA’s and its Subsidiaries’ rights in and to the Licensed Patents and in and to the
Transmeta Technology, Transmeta Technology Deliverables, and Transmeta’s Intellectual Property
rights therein, are limited to those licenses and rights expressly granted in this Agreement.
Transmeta reserves for itself all rights in and to the Licensed Patents, Transmeta Technology,
Transmeta Technology Deliverables and Intellectual Property Rights therein not expressly granted to
NVIDIA hereunder. For the avoidance of doubt, NVIDIA is not deemed to be an acquiror or assignee
of, or successor to, Transmeta or any of its Subsidiaries by reason of this Agreement.

          (d) In the event of any Change of Control of Transmeta or any of its Subsidiaries, or any
assignment or transfer of this Agreement by Transmeta, the licenses granted pursuant to this
Agreement shall not be construed as granting any rights under, or as otherwise applying to, any
Intellectual Property Rights of the Merger Partner, Acquiring Person, or other acquirer, assignee,
transferee, or successor of Transmeta or the applicable Subsidiary, except to the extent such
Intellectual Property Rights would otherwise be subject to the licenses granted above in the
absence of such Change of Control, assignment, transfer, or succession.

3. DELIVERY

Following the execution of this Agreement by both Parties, Transmeta will deliver the Transmeta
Technology Deliverables to NVIDIA by means of electronic delivery (e.g., by FTP download), by a
“Load and Leave” process, or by other means reasonably acceptable to the Parties, it being
understood that Transmeta shall have no obligation, and has no intent, to deliver any tangible
articles to NVIDIA under this Agreement. NVIDIA acknowledges that it has been given a full and
reasonable opportunity to review, and has reviewed, the Transmeta Technology Deliverables prior to
execution of this Agreement, and that Transmeta shall have no obligation under the preceding
sentence to deliver any items beyond those previously made available for NVIDIA’s review. Except
as set forth in this Section 3, Transmeta will have no obligation to furnish NVIDIA or any of its
Subsidiaries with any technology, information, materials, services, updates, support, or assistance
of any kind. NVIDIA acknowledges and agrees that in no event shall Transmeta have any obligation
to create or develop, or deliver to NVIDIA, any new technology, information, materials, or data.
Upon completion of the delivery set forth in the first sentence of this Section 3, Transmeta shall
have fully and completely satisfied its delivery obligation under this Agreement to deliver the
Transmeta Technology Deliverables to NVIDIA.

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4. COVENANT NOT TO SUE

     4.1 Covenant by Transmeta. For a period of [* * *] following the Effective
Date, and contingent upon receipt by Transmeta of the entire License Fee set forth in Section 6.1,
Transmeta covenants that it will not assert, and it will ensure that none of its Subsidiaries
asserts, any claim of infringement of any Patent against (a) NVIDIA or any of its Subsidiaries
based upon the manufacture, use, sale, offer for sale, or importation of products or services that
are within the NVIDIA Field of Use or (b) with respect to their use of any products or services
within the NVIDIA Field of Use that are provided by NVIDIA or any of its Subsidiaries, any of its
or their direct or indirect customers (including end users), suppliers (including licensors), or
distributors.

     4.2 Covenant by NVIDIA. For a period of [* * *] following the Effective Date,
NVIDIA covenants that it will not assert, and it will ensure that none of its Subsidiaries asserts,
any claim of infringement (including contributory infringement and inducing infringement) of any
Patent against Transmeta or any of its Subsidiaries based upon or arising from the licensing by
Transmeta or any its Subsidiaries to any third party of the Transmeta Technology and/or Licensed
Patents, including the provision by Transmeta or any of its Subsidiaries of the Transmeta
Technology Deliverables to any third party. This covenant is not intended to exhaust any of
NVIDIA’s or its Subsidiaries’ patents or confer any rights or benefits on any third party,
including any licensee of Transmeta or its Subsidiaries. This covenant will apply to Transmeta and
its Subsidiaries only when Transmeta or a Transmeta Subsidiary grants a license to the Transmeta
Technology or Licensed Patents to a third party (a “Licensee”) in a binding written agreement that
includes an express acknowledgement by the Licensee that no rights in any NVIDIA patents are
granted or conferred upon the Licensee as a result of the exhaustion doctrine or the doctrine of
implied licenses or otherwise.

     4.3 Beneficiaries; Termination. The covenants set forth in Sections 4.1 and 4.2 do
not and will not bind or benefit any third party, except as expressly set forth above. The
covenants set forth above will immediately and automatically terminate upon the earlier of: (a) the
[* * *] of the Effective Date; and (b) a Change of Control of either NVIDIA or Transmeta.
Further, except in connection with a Change of Control, any transfer or assignment of this
Agreement or the covenant obligations or covenant rights hereunder by a Party to any third party
will automatically terminate the other Party’s and its Subsidiaries’ covenant under this Section 4.

5. RELEASE

     5.1 Release of Actions Prior to Effective Date. Following the execution of this
Agreement by both Parties, and contingent upon receipt by Transmeta of the entire License Fee set
forth in Section 6.1, each Party (as “Releasor”), on behalf of itself and its Subsidiaries as of
the Effective Date, releases the other Party, all of such other Party’s Subsidiaries as of the
Effective Date, and all of its and their respective current and former officers, employees, agents,
directors, shareholders, and owners (collectively, the “Representatives”) from any and all claims
of infringement of any Patent owned or controlled by the Releasor or its Subsidiaries based upon
activities occurring on or before the Effective Date. In addition, each Releasor, on behalf of
itself and its Subsidiaries as of the Effective Date, releases the other Party’s and its
Subsidiaries’ suppliers (including licensors) and direct and indirect customers (including end
users) from all claims of infringement of any Patent owned or controlled by the Releasor or its
Subsidiaries

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based upon the manufacture, use, sale (or license), offer for sale (or license), or
importation of products or services provided by the other Party or any of its Subsidiaries on or
before the Effective Date. If any action on the part of any Subsidiary of a Party is necessary to
make the releases above fully effective, such Party shall ensure that such Subsidiary takes such
action.

     5.2 Release of Unknown Claims. The release contained in this Agreement extends to
claims to which the Parties and their respective Subsidiaries do not know or suspect to exist in
their favor, which if known by them, would have materially affected their decision to enter into
the release contained in this Agreement. Each of the Parties, on behalf of itself and its
Subsidiaries as of the Effective Date, acknowledges that it is familiar with Section 1542 of the
Civil Code of the State of California, which is quoted as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW, OR SUSPECT TO
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

     The Parties expressly waive their right under Section 1542 as to any unknown claims within the
scope of the release under this Agreement. Notwithstanding the foregoing, the Parties acknowledge
and agree that the release given under this Section 5 is limited to claims of patent infringement
and is not a “general release” of any other related claims, known or unknown, that may be based on
a common set of transactions or occurrences or depend on a common nucleus of operative facts.

     5.3 Claims not Released. Notwithstanding anything set forth in this Section 5 or
elsewhere in this Agreement, nothing in this Agreement is or will be effective to release a Party,
its Subsidiaries or that Party’s or its Subsidiaries’ Representatives, suppliers (including
licensors) and direct and indirect customers (including end users) from any claims an acquiror,
transferee, assignee, or successor of the Releasor or of the Releasor’s Subsidiaries may have prior
to the effective date of such acquisition, transfer, assignment, or succession.

6. PAYMENTS

     6.1 License Fee. Within [* * *] business days after Transmeta’s delivery of the
Transmeta Technology Deliverables pursuant to the first sentence of Section 3, and subject to
Section 6.2 below, NVIDIA will pay (or will cause NVIDIA Sub to pay) to Transmeta a one-time,
non-refundable license fee of twenty-five million United States dollars (U.S. $25,000,000)
(“License Fee”). Transmeta will credit twenty-five thousand United States dollars (U.S. $25,000)
of the License Fee to the Fees owed by NVIDIA to Transmeta pursuant to that certain Design
Evaluation Agreement between the Parties dated [* * *].

     6.2 Payment Terms. The entire amount of the License Fee specified in this Agreement
will be paid in U.S. dollars. NVIDIA shall pay (or will cause NVIDA Sub to pay) the entire License
Fee to Transmeta, without deduction or withholding of taxes or other fees or costs, by wire
transfer for the account of Transmeta to such account as Transmeta may indicate by written notice
to NVIDIA. Transmeta will provide written notice of its wire transfer instructions to NVIDIA no
later than [* * *] business days after its initial delivery of the Transmeta Technology
Deliverables to NVIDIA pursuant to the first sentence of Section 3. If

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Transmeta fails to provide written notice of its wire transfer instructions to NVIDIA by then,
then for each additional day before Transmeta provides such written notice to NVIDIA, NVIDIA will
have an additional day to pay the License Fee to Transmeta.

7. PUBLICITY

Promptly after execution of this Agreement by both Parties, NVIDIA and Transmeta will cooperate
with one another to prepare and issue a mutually agreed-upon press release regarding the
relationship established by this Agreement. Neither Party shall issue any other press release or
other public statement regarding this Agreement or either Party’s rights or obligations hereunder
without the other Party’s prior written approval of such press release or other public statement,
which approval shall not be unreasonably withheld or delayed.

8. TERM AND TERMINATION

     8.1 Term. This Agreement will begin on the Effective Date and will remain in force
perpetually unless and until terminated in accordance with Section 8.2.

     8.2 Termination of Agreement. Transmeta will have the right to terminate this
Agreement, including the licenses granted in Section 2, by written notice to NVIDIA due to NVIDIA’s
failure to pay the License Fee as set forth in Section 6, if such failure is not corrected within
ten (10) business days after Transmeta provides written notice thereof to NVIDIA. Transmeta will
not have the right to terminate this Agreement, or any license rights granted to NVIDIA in this
Agreement, for any other reason including any other breach of this Agreement by NVIDIA. Both
Parties acknowledge that Transmeta will have the right to seek other remedies, including monetary
damages and injunctive relief, for any breach of this Agreement by NVIDIA, and without limiting or
waiving any such other remedies, Transmeta irrevocably and unconditionally waives any right it may
have, under any principle of equity or any other legal theory, to terminate any of the license
rights granted to NVIDIA in this Agreement due to any breach of this Agreement (other than the
obligation to pay the License Fee) by NVIDIA or any other act, conduct, or omission on the part of
NVIDIA (other than a failure to pay the License Fee). NVIDIA may not terminate this Agreement for
any reason.

     8.3 Effect of Termination of Agreement. Upon termination of this Agreement by
Transmeta pursuant to Section 8.2: (i) all license rights of NVIDIA under Section 2.1, and all
sublicenses granted under Section 2.2, will immediately and automatically terminate; and
(ii) NVIDIA and its sublicensed Subsidiaries shall promptly return to Transmeta or destroy all
copies, in whatever form, of the Transmeta Technology Deliverables in its or their possession or
control (and, to the extent commercially reasonable, any copies provided by NVIDIA or an NVIDIA
Subsidiary that are in the possession or control of any third party).

     8.4 Survival. The rights and obligations of the Parties under Sections 8.3, 8.4, 9,
10, 11, 12, 13 and 14 of this Agreement will survive termination of this Agreement for any reason.

9. CONFIDENTIALITY

     9.1 Confidentiality Obligations. NVIDIA, on behalf of itself and its Subsidiaries,
acknowledges and agrees that the Transmeta Technology and Transmeta Technology

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Deliverables may contain valuable proprietary, confidential and trade secret information of
Transmeta. Accordingly, NVIDIA will restrict the disclosure of the Transmeta Technology and
Transmeta Technology Deliverables to its Subsidiaries and to suppliers (including foundries and
other contract manufacturers), customers, and distributors as allowed under Sections 2.1 and 2.2,
and will not use the Transmeta Technology or Transmeta Technology Deliverables in a manner that is
outside the scope of the license rights granted to NVIDIA in this Agreement and, with respect to
copyrighted materials included in the Transmeta Technology Deliverables, would not be considered
“fair use” of those materials within the meaning of U.S. copyright law. NVIDIA and its
Subsidiaries shall use at least the efforts and procedures that NVIDIA ordinarily uses with respect
to its own confidential information and trade secrets, but in no event will NVIDIA use less than
reasonable efforts, to protect and to maintain the confidentiality of all of the Transmeta
Technology and Transmeta Technology Deliverables while the Transmeta Technology and Transmeta
Technology Deliverables are in the possession or control of NVIDIA or its Subsidiaries. When
disclosing the Transmeta Technology or Transmeta Technology Deliverables to third parties as
allowed under Sections 2.1 and 2.2, NVIDIA and its Subsidiaries will use the same efforts and
procedures to protect the confidentiality of the Transmeta Technology or Transmeta Technology
Deliverables being disclosed as NVIDIA and its Subsidiaries use to protect their own confidential
information of similar nature and value.

     9.2 Equitable Relief. NVIDIA, on behalf of itself and its Subsidiaries, acknowledges
and agrees that, in the event of a breach by NVIDIA or its Subsidiaries of the restrictions,
limitations, or conditions set forth in this Agreement with respect to the disclosure and/or use of
the Transmeta Technology and the Transmeta Technology Deliverables, in addition to any and all
other remedies available at law, in equity or otherwise to Transmeta and its Subsidiaries,
Transmeta and its Subsidiaries shall have the right to seek specific performance, a temporary
restraining order, preliminary and permanent injunctions and any other appropriate equitable relief
restraining and remedying any breach or threatened breach of the requirements of confidentiality or
any other restrictions, limitations, or conditions on use or disclosure set forth in this
Agreement.

     9.3 Confidentiality of this Agreement. Neither Party shall disclose this Agreement or
any portion thereof without the prior written consent of the other Party.

     9.4 Disclosure Exceptions. The foregoing obligations of Section 9.3 shall not
restrict either Party from disclosing the terms of this Agreement: (i) pursuant to the order or
requirement of a court, administrative agency, or other governmental body, provided that the Party
required to make such a disclosure gives reasonable notice to the other Party, to the extent
reasonably practicable, so that the other Party may contest such an order or requirement or seek
confidential treatment; (ii) on a confidential basis to its legal or professional advisors; (iii)
as required under applicable securities laws, rules and regulations; (iv) subject to execution of
reasonable and customary written confidentiality agreements consistent with the restrictions set
forth herein, to present or future providers of capital and/or potential acquirers of such Party or
its assets associated with the subject matter of this Agreement; and (v) as required to enforce its
rights under the Agreement.

     9.5 Exclusions. The obligations set forth in Section 9.1 will not apply to any
information that: (i) is or becomes generally known to the public through no fault or breach of
this Agreement by the receiving Party; (ii) was rightfully known to the receiving Party at the

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time of disclosure without an obligation of confidentiality owned to the disclosing Party;
(iii) was independently developed by the receiving Party without use of the disclosing Party’s
Confidential Information; or (iv) the receiving Party rightfully obtains from a third Party without
restriction on use or disclosure.

10. OWNERSHIP

     10.1 Intellectual Property Ownership. It is acknowledged and agreed by the Parties
that nothing in this Agreement shall affect either Party’s ownership of any Intellectual Property
Rights, whether existing as of the Effective Date or arising thereafter.

     10.2 Proprietary Notices. NVIDIA and its Subsidiaries will not delete or in any
manner alter the patent, copyright, trademark, and other proprietary rights notices of Transmeta
(and its suppliers, if any) appearing on the documents and computer readable media (including the
Transmeta Technology and/or Transmeta Technology Deliverables), as provided or otherwise made
available by Transmeta hereunder.

11. NO WARRANTIES

THE LICENSED PATENTS, TRANSMETA TECHNOLOGY, AND TRANSMETA TECHNOLOGY DELIVERABLES ARE LICENSED AND
MADE AVAILABLE BY TRANSMETA UNDER THIS AGREEMENT “AS IS” AND WITH ALL FAULTS. TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, TRANSMETA EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES AND
CONDITIONS WITH RESPECT TO THE LICENSED PATENTS, TRANSMETA TECHNOLOGY, AND TRANSMETA TECHNOLOGY
DELIVERABLES, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, INCLUDING: (a) ANY WARRANTY OR
REPRESENTATION AS TO THE VALIDITY, SCOPE, OR ENFORCEABILITY OF THE LICENSED PATENTS OR THAT
NVIDIA’S EXERCISE OF THE RIGHTS GRANTED HEREUNDER WILL NOT INFRINGE THE RIGHTS OF ANY THIRD
PARTIES; AND (b) ANY IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, COMPLETENESS,
SUFFICIENCY, FITNESS FOR A PARTICULAR PURPOSE, QUALITY, OR NON-INFRINGEMENT; EVEN IF TRANSMETA HAS
BEEN MADE AWARE OF ANY PARTICULAR NVIDIA REQUIREMENTS. THE TRANSMETA TECHNOLOGY AND TRANSMETA
TECHNOLOGY DELIVERABLES INCLUDE MATERIALS THAT ARE SUBJECT TO OPEN-SOURCE LICENSING TERMS AND
CONDITIONS.

12. INDEMNITY

Subject to Section 13, NVIDIA agrees to and shall defend, at its own expense, and indemnify
Transmeta and its Subsidiaries for all monetary damages finally awarded or agreed to in settlement
as a result of:

	 	(a)	 	any claims of patent infringement (including contributory infringement and
inducing infringement) asserted in any legal action or proceeding by a Potential Patent
Claimant (as defined in Exhibit D) against Transmeta or its Subsidiaries to the extent
(and solely to the extent) that such claims are based on NVIDIA’s, its Subsidiaries’,
or any of its or their sublicensees’, joint development partners’,

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	 	 	 	direct and indirect customers’, or agents’ Exploitation or other use of the
Transmeta Technology or Transmeta Technology Deliverables licensed or provided to
NVIDIA pursuant to this Agreement; or
	 
	 	(b)	 	any third-party claims for breach of confidentiality, misappropriation of trade
secrets, or copyright infringement arising solely from (i) Transmeta’s delivery or
disclosure to NVIDIA of Third Party Materials included in the Transmeta Technology
Deliverables or (ii) NVIDIA’s or its Subsidiaries’ Exploitation of such Third Party
Materials. As used above, “Third Party Materials” means data, works of authorship,
proprietary or confidential information, software code, or other information or
materials that Transmeta or a Transmeta Subsidiary has lawfully obtained from a third
party (without breaching any contract, infringing any copyrights, misappropriating any
trade secrets, or otherwise engaging in any activity or conduct that is illegal or
violates a third party’s rights) prior to its delivery or disclosure thereof to NVIDIA.

NVIDIA’s obligations under this Section 12 are subject to the following conditions:

	 	(i)	 	Transmeta must give NVIDIA prompt written notice of the claims for which
Transmeta seeks indemnification;
	 
	 	(ii)	 	Transmeta must tender complete control of the defense and settlement of such
claims to NVIDIA (except that NVIDIA may not agree, without Transmeta’s prior written
consent, to any settlement that would impose any material restriction, liability, or
obligation on Transmeta or its Subsidiaries, including any material restriction on
Transmeta’s or its Subsidiaries’ right to Exploit the Transmeta Technology or Licensed
Patents, or any obligation that would require Transmeta or any of its Subsidiaries to
license, transfer, or otherwise dispose of any material portion of the Transmeta
Technology or Licensed Patents, it being understood that Transmeta will not
unreasonably withhold such consent); and
	 
	 	(iii)	 	Transmeta must reasonably cooperate with NVIDIA in the defense of such claims.

13. LIMITATION OF LIABILITY

     13.1 Exclusion of Damages. EXCEPT WITH RESPECT TO ANY BREACH OF NVIDIA’S OR ITS
SUBSIDIARIES’ OBLIGATIONS UNDER SECTION 9.1, OR ANY VIOLATION OF THE LIMITATIONS OR RESTRICTIONS ON
THE SCOPE OF THE LICENSES GRANTED TO NVIDIA HEREUNDER, NEITHER PARTY (INCLUDING ITS SUBSIDIARIES)
WILL BE LIABLE TO THE OTHER PARTY OR ITS SUBSIDIARIES FOR ANY INCIDENTAL, SPECIAL, PUNITIVE,
EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING DAMAGES BASED ON LOSS OF USE, DATA, BUSINESS,
PROFITS, OR GOODWILL OR BASED ON COST OF COVER) IN CONNECTION WITH, ARISING OUT OF, OR RELATING TO
THIS AGREEMENT OR ANY USE BY NVIDIA (OR ANY OF ITS SUBSIDIARIES, AGENTS OR DIRECT OR INDIRECT
CUSTOMERS) OF THE LICENSED PATENTS, TRANSMETA TECHNOLOGY, OR TRANSMETA TECHNOLOGY DELIVERABLES,
WHETHER SUCH LIABILITY ARISES FROM ANY

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CLAIM BASED UPON CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR
OTHERWISE, AND WHETHER OR NOT IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. THIS SECTION
13.1 SHALL NOT, HOWEVER, BE CONSTRUED AS LIMITING (a) EITHER PARTY’S LIABILITY FOR INFRINGEMENT OR
MISAPPROPRIATION OF THE OTHER PARTY’S INTELLECTUAL PROPERTY RIGHTS, or (b) THE AMOUNT OF MONETARY
DAMAGES FINALLY AWARDED BY A COURT, OR AGREED TO IN A SETTLEMENT, FOR WHICH NVIDIA IS OBLIGATED TO
INDEMNIFY TRANSMETA PURSUANT TO SECTION 12.

     13.2 Total Liability

          (a) IN NO EVENT WILL TRANSMETA’S TOTAL CUMULATIVE LIABILITY TO NVIDIA IN CONNECTION WITH,
ARISING OUT OF, OR RELATING TO THIS AGREEMENT, FROM ALL CAUSES OF ACTION AND THEORIES OF LIABILITY,
EXCEED [* * *] U.S. DOLLARS ($[* * *]).

          (b) EXCEPT FOR ANY FAILURE BY NVIDIA TO PAY THE LICENSE FEE AS SET FORTH IN SECTION 6 AND AS
EXPRESSLY PROVIDED IN SECTION 13.2(c), IN NO EVENT WILL NVIDIA’S TOTAL CUMULATIVE LIABILITY TO
TRANSMETA IN CONNECTION WITH, ARISING OUT OF, OR RELATING TO THIS AGREEMENT, FROM ALL CAUSES OF
ACTION AND THEORIES OF LIABILITY (INCLUDING NVIDIA’S OBLIGATIONS UNDER SECTION 12), EXCEED [* * *]
U.S. DOLLARS ($[* * *]).

          (c) IN NO EVENT WILL NVIDIA’S AND ITS SUBSIDIARIES’ TOTAL CUMULATIVE LIABILITY TO TRANSMETA IN
CONNECTION WITH, ARISING OUT OF, OR RELATING TO ANY BREACH OF NVIDIA’S OBLIGATIONS UNDER SECTION
9.1 OR ANY LIABILITY FOR NVIDIA’S OR ITS SUBSIDIARIES’ INFRINGEMENT OR MISAPPROPRIATION OF
TRANSMETA’S OR ITS SUBSIDIARIES’ INTELLECTUAL PROPERTY RIGHTS EXCEED [* * *] U.S. DOLLARS ($[* *
*]).

     13.3 Acknowledgment. Each Party acknowledges that the other Party has entered into
this Agreement in reliance on the above limitations and exclusions of liability, and on NVIDIA’s
promise to indemnify, defend, and hold harmless Transmeta as set forth in Section 12 above, and
that the same constitute a material basis of the bargain between the Parties, without which neither
Party would enter into this Agreement. The Parties have agreed that the limitations and exclusions
specified above will survive any expiration or termination of this Agreement and will apply even if
any limited remedy specified in this Agreement is found to have failed of its essential purpose.

14. GENERAL PROVISIONS

     14.1 Assignment. Neither Party may assign or transfer this Agreement and/or any
rights and/or obligations hereunder, in whole or in part, whether by operation of law or otherwise,
without the other Party’s express prior written consent, which consent will not be unreasonably
withheld or delayed. Notwithstanding the immediately preceding sentence, either Party may assign
or transfer this Agreement in connection with a Change of Control of that Party to a Merger Partner
or the Acquiring Person in that Change of Control. Any attempt to assign or

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transfer this Agreement other than as specifically permitted by this Section 14.1 shall be
null and void and without effect. Any assignment or transfer of this Agreement shall be subject to
the provisions of Section 2.3(b), Section 2.3(d) and Section 4. Subject to the foregoing or as
provided otherwise in this Agreement, the rights and obligations of the Parties will be binding
upon and inure to the benefit of the Parties’ permitted successors and lawful transferees and
assigns.

     14.2 Independent Contractors. In performing their respective duties under this
Agreement, each of the Parties will be operating as an independent contractor. Nothing contained
herein will in any way constitute any association, partnership, or joint venture between the
Parties hereto. Neither Party will have the power to bind the other Party or incur obligations on
the other Party’s behalf without the other Party’s prior written consent.

     14.3 Notice. All notices required or permitted under this Agreement will be in
writing and delivered by confirmed facsimile transmission, by courier or overnight delivery
services, or by certified mail, and in each instance will be deemed given upon receipt. All
communications will be sent to the addresses set forth below or to such other address as may be
specified by either Party to the other in accordance with this Section. Either Party may change
its address for notices under this Agreement by giving written notice to the other Party by the
means specified in this Section.

	 	 	 	 
	 

	If to Transmeta:
	 	If to NVIDIA and/or NVIDIA Sub:
	 
	 	 	 
	 

	President
	 	Chief Financial Officer
	 

	Transmeta Corporation
	 	NVIDIA Corporation
	 

	2540 Mission College Blvd.
	 	2701 San Tomas Expressway
	 

	Santa Clara, CA 95054
	 	Santa Clara, CA 95050
	 
	 

	With copies to:
	 	With copy to:
	 

	General Counsel
	 	General Counsel
	 

	Transmeta Corporation
	 	NVIDIA Corporation
	 

	2540 Mission College Blvd.
	 	2701 San Tomas Expressway
	 

	Santa Clara, CA 95054
	 	Santa Clara, CA 95050
	 
	 	 	 
	 

	Mark A. Leahy, Esq.	 	 
	 

	Fenwick & West LLP	 	 
	 

	801 California Street	 	 
	 

	Mountain View, CA 94041	 	 

     14.4 Compliance with Export Control Laws. NVIDIA will comply fully with all relevant
export laws and regulations of the United States and all other countries having competent
jurisdiction (“Export Laws”) to ensure that neither the Transmeta Technology, Transmeta Technology
Deliverables nor any direct product thereof or technical data related thereto is: (i) exported or
re-exported directly or indirectly in violation of Export Laws; or (ii) used for any purposes
prohibited by the Export Laws, including nuclear, chemical, or biological weapons proliferation.

13

 

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     14.5 Waiver. No failure by either Party to exercise or enforce any of its rights
under this Agreement will act as a waiver of such rights, and no waiver of a breach in a particular
situation will be held to be a waiver of any other or subsequent breach.

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

     14.7 Non-Exclusive Remedy. Except as otherwise set forth in this Agreement, the
exercise by either Party of any of its remedies under this Agreement will be without prejudice to
its other remedies under this Agreement or otherwise.

     14.8 Governing Law and Venue. This Agreement will be governed by and construed in
accordance with the laws of the State of California without reference to its conflict of laws
principles. Any legal action or proceeding arising under this Agreement will be brought
exclusively in the federal or state courts located in the Northern District of California and the
Parties hereby irrevocably: (a) consent to the personal jurisdiction of such courts and venue
therein; and (b) waive any objections based on any such court’s inconvenience as a forum.

     14.9 Construction. No rule of strict construction shall be applied in the
interpretation of this Agreement. Section headings are for convenience only and are not to be
taken into consideration in the interpretation of this Agreement. Unless otherwise expressly
stated in this Agreement: (a) the words “including” and “includes”, and any variations thereof,
will be read as if followed by the words “without limitation” and shall not be taken as expressions
of limitation; and (b) whenever a Party’s consent or approval is required, such Party may grant or
withhold such consent or approval in its absolute discretion.

[REMAINDER OF PAGE INTENTIONALY LEFT BLANK.]

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     14.10 Entire Agreement. This Agreement, including its exhibits, constitutes the
complete and exclusive understanding and agreement between the Parties relating to the subject
matter hereof and supersedes all contemporaneous and prior understandings, agreements, and
communications (both written and oral) relating to its subject matter. No modifications,
alterations, or amendments will be effective unless in writing signed by duly authorized
representatives of both Parties.

     14.11 Counterparts. This Agreement may be executed in multiple counterparts, each of
which will be deemed an original but all of which together will constitute one and the same
instrument.

     IN WITNESS WHEREOF, the Parties and NVIDIA Sub have caused this Agreement to be executed by
their duly authorized representatives, to be effective as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	TRANSMETA CORPORATION:	 	 	 	NVIDIA CORPORATION:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ LESTER M. CRUDELE
	 	 	 	By:
	 	/s/ DAVID M. SHANNON	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Lester M. Crudele
	 	 	 	Name:
	 	David M. Shannon	 	 
	Title:

	 	President & Chief Executive Officer
	 	 	 	Title:
	 	General Counsel	 	 
	Date:

	 	July 31, 2008
	 	 	 	Date:
	 	July 31, 2008	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	NVIDIA International, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ NIGEL B. ALLEN	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Nigel B. Allen	 	 
	 

	 	 	 	 	 	Title:
	 	Director	 	 
	 

	 	 	 	 	 	Date:
	 	July 31, 2008	 	 

15

 

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EXHIBIT A

Architecture Technology

[* * *]

16

 

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EXHIBIT B

LongRun2 Technology

[* * *]

17

 

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EXHIBIT C

Licensed Patents

Transmeta represents and warrants that Exhibit C contains a complete and accurate list of all U.S.
patent applications (including continuations, continuations in part, and divisionals) and issued
U.S. patents (including reissues and reexaminations) that are in Transmeta’s possession, custody,
or control, or that Transmeta has the right or ability to license, as of the Effective Date.
Transmeta further represents and warrants that each non-U.S. patent or patent application owned or
controlled by Transmeta or any of its Subsidiaries as of the Effective Date is a foreign
counterpart of at least one of the U.S. patents or patent applications listed below and, therefore,
is a Licensed Patent.

[* * *]

19

 

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EXHIBIT D

Potential Patent Claimants

[* * *]

20

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