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ex10-1.htm

 

 

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EXHIBIT 10.1

LITIGATION SETTLEMENT AND LICENSE AGREEMENT

THIS LITIGATION SETTLEMENT AND LICENSE AGREEMENT (hereinafter “Agreement”) is made the 30th day of April, 2010, by and between OPTi INC. (hereinafter “OPTi” or “Licensor”), a corporation organized and existing under the laws of the State of California, and ADVANCED MICRO DEVICES, INC. (hereinafter “AMD” or “Licensee”), a corporation organized and existing under the laws of the State of Delaware.

WITNESSETH:

WHEREAS, OPTi represents that it is the sole owner and has the exclusive right to license the intellectual property set forth in this Agreement, including without limitation the OPTi Patents listed in the attached Schedule A;

WHEREAS, OPTi and AMD are currently litigating a civil action pending in the United States District Court for the Eastern District of Texas (the “Pending Litigation”);

WHEREAS, OPTi and AMD desire to avoid further litigation and the expense incident thereto and to fully and finally settle and dispose of all issues related to the subject matter of this Agreement on the terms and conditions set forth below;

NOW, THEREFORE, in consideration of the mutual promises and obligations recited herein, the parties agree as follows:

AGREEMENT

I.           DEFINITIONS

1.1           Definitions.  As used in this Agreement, the following defined terms shall have the meanings set forth below:

 “Claims” means and includes any and all claims, counterclaims, cross-claims, charges, demands, sums of money, actions, causes of action, obligations, judgments and liabilities of any kind or nature whatsoever, at law or in equity, known or unknown, sounding in contract, tort or otherwise, arising from statute or common law, absolute or contingent, liquidated or unliquidated, and includes, without limitation, claims for indemnification and contribution.

“Effective Date” means the date this Agreement is signed by OPTi.

  

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 “Licensed Intellectual Property” means:

(a)           except for U.S. Patent Nos. 5,944,807, 6,098,141, and 7,523,245, all

classes or type of patents, utility models, design patents and applications for the aforementioned in any and all countries of the world which, prior to the expiration of this Agreement are issued, published, filed, invented, or arise out of inventions made by one or more current or former employees of Licensor made while employed at Licensor or a Related Party of Licensor, where Licensor has the right to grant licenses or rights of the scope granted herein (and to the extent the inventions are made jointly with a third party, where Licensor has the right to grant licenses or rights of the scope granted herein), and

(b)           except for U.S. Patent Nos. 5,944,807, 6,098,141, and 7,523,245, all classes or type of patents, utility models, design patents and applications for the aforementioned in any and all countries of the world which are owned, controlled, or acquired by Licensor or a Related Party of Licensor as of the Effective Date of this Agreement, or that Licensor or a Related Party of Licensor may, during the term of this Agreement, own or acquire the right to grant licenses or rights of the scope granted herein.

“Licensed Activity" means:  [***].

“Party” means OPTi or AMD as the context dictates.

“Pending Litigation” means OPTi Inc. v. Advanced Micro Devices, Inc., Case No. 2:06-cv-00477 in the United States District Court for the Eastern District of Texas.

“Related Party” or “Related Parties” means any corporation, company or other business entity that is, on the Effective Date of this Agreement 50% or more owned (directly or indirectly) by a Party.

1.2           Interpretation.  Unless the context of this Agreement otherwise requires, (i) words of any gender include each other gender; (ii) words using the singular or plural number also include the plural or singular number, respectively; (iii) the terms “hereof,” “herein,” “whereby” and derivative or similar words refer to this entire Agreement; and (iv) the term “Article” refers to the specified Article of this Agreement.

II.           GRANT OF LICENSE

2.1           Grant of License.  Licensor hereby agrees to grant, and does grant, to Licensee and its Related Parties a non-exclusive, royalty-free, worldwide, perpetual, irrevocable, fully paid-up license under the Licensed Intellectual Property, including the right to engage in any Licensed Activity.  For the avoidance of any doubt, this license includes, without limitation, [***].[***].

  

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2.2           Survival.  The obligations of this Article II shall survive any expiration or termination of this Agreement.  Even if a final judgment is entered and affirmed on appeal establishing that any of the Licensed Intellectual Property is invalid or unenforceable, AMD may not terminate the license granted herein and must comply with the terms of Section III below.

III.           CONSIDERATION

3.1           Consideration.  In consideration of OPTi’s obligations in this Agreement, including without limitation a license to at least thirty-one patents, AMD shall pay OPTi $32 million U.S. dollars.  The payments will be due in one initial payment of $4 million dollars and four equal installments of $7 million dollars each, on the following dates: the first payment shall be due fourteen days after the Effective Date of this Agreement.  The subsequent payments shall be due on July 1, 2010; October 1, 2010; January 1, 2011; April 1, 2011.

3.2           Paperwork.  Within one (1) day following the execution of this Agreement, Licensor shall provide any account information and forms necessary to set Licensor up as a new payee in Licensor’s accounts payable system, to facilitate the processing of the payment set forth in Article 3.1 above.

IV.           ADDITIONAL OBLIGATIONS

4.1           Covenant Not To Sue.  Licensor covenants that it will not assert any Claims, in or out of a legal proceeding, that any of the Licensed Intellectual Property is directly or indirectly infringed by AMD. [***].  In addition, Licensor covenants that it will [***].

4.2           Releases.  Based on the consideration provided in this Agreement, Licensor and its Related Parties, affiliates, successors and assigns, hereby release and forever discharge Licensee, Licensee’s Related Parties, and any respective directors, shareholders, officers and employees, or their affiliates, successors and assigns, of, and from, every Claim of any kind related to a Licensed Activity, including without limitation, any Claim arising out of acts occurring before the Effective Date which would be covered by Article 4.1 or Article 2.1 if such act had occurred after the Effective Date of this Agreement. [***].

Understandings.  OPTi and AMD expressly understand the possibility that unknown claims exist that arise from or relate to the claims being released in this Agreement. OPTi and AMD explicitly took that possibility into account in determining the amount of consideration for the making of this Agreement, and a portion of that consideration and the mutual covenants in this Agreement, which was bargained for by OPTi and AMD with the knowledge of the possibility of unknown claims, was given in exchange for a full accord, satisfaction and discharge of all such claims.  Consequently, OPTi and AMD expressly waive all rights under section 1542 of the California Civil Code and all statutes or other law of similar effect in other jurisdictions.  Section 1542 reads as follows:

 

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

 

  

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OPTi and AMD expressly accept and assume the risk that facts relating to the subject matter of this Agreement may hereafter be found to be different from the facts now believed to be true, and agree that this Agreement and the releases in it shall remain effective notwithstanding any such differences.

4.3           Disposal of Pending Litigation.  Licensor agrees that it will, within 30 days of the Effective Date of this Agreement, fully and finally dismiss, with prejudice, the Pending Litigation, with each party to bear its own costs and attorneys’ fees.  In the event Licensor breaches this Article 4.3, Licensor further agrees that Licensee may, in its sole and absolute discretion, perform Licensor’s obligations under this Article 4.3.

4.4           Survival.  The obligations of this Article IV shall survive any expiration or termination of this Agreement.

V.           OBLIGATION OF CONFIDENTIALITY

5.1           Confidentiality Obligation.  The parties hereto shall keep the terms of this Agreement confidential and shall not now or hereafter divulge these terms to any third party except:

	 	
(a)

	
with the prior written consent of the other party;

	 	
(b)

	
to any governmental body having jurisdiction to call therefor;

	 	
(c)

	
subject to (d) below, as otherwise may be required by law or legal process, including to legal and financial advisors in their capacity of advising a party in such matters;

	 	
(d)

	
during the course of litigation so long as the disclosure of such terms and conditions are restricted in the same manner as is the confidential information of other litigating parties and so long as (a) the restrictions are embodied in a court-entered Protective Order, and (b) the disclosing party informs the other party in writing at least ten (10) days in advance of the disclosure;

	 	
(e)

	
in confidence to legal counsel, accountants, banks, and financing sources and their advisors solely in connection with complying with financial transactions;

	 	
(f)

	
in confidence to an acquirer or acquiree, and such other party’s legal counsel, accountants, banks and financing sources and their advisors solely in connection with an anticipated merger or acquisition;

  

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(g)

	
to the extent either party concludes that disclosure is required by the Securities and Exchange Act of 1934, as amended, or any other Securities and Exchange Commission law or regulation.

5.2  Survival.  The obligations of this Article V shall survive any expiration or termination of this Agreement.

VI.           TERM OF AGREEMENT AND ASSIGNABILITY

6.1           Term.  This Agreement shall commence as of the Effective Date and shall continue until the last of the Licensed Intellectual Property has expired or is in the public domain.

6.2           Assignability.

	
(a)  

	
The rights or privileges provided for in this Agreement may not be assigned or transferred by either Party except with the prior written consent of the other Party and with the authorization or approval of any governmental authority as then may be required.  In the event a Related Party licensed hereunder ceases to be a Related Party during the term of this Agreement, that Related Party shall remain licensed hereunder for the remaining term of this Agreement.

	
(b)  

	
Notwithstanding section (a) above, Licensee agrees that Licensor may sell, assign, or otherwise transfer any Licensed Intellectual Property to a third party, provided that the Licensed Intellectual Property is subject to all terms of this Agreement, including Articles 2.1 and 4.1, and that any such sale, assignment, or transfer shall be subject to the terms and conditions set forth herein, and Licensor shall notify such third party that the Licensed Intellectual Property is subject to the terms of this Agreement, including Articles 2.1 and 4.1, and that any such sale, assignment, or transfer shall be subject to the terms and conditions set forth herein.  Licensor shall ensure that any such transfer shall be binding upon any successor to such rights by, at least, recording such rights and limitations thereupon with any applicable governmental agency.

 

	
(c)  

	
The rights granted to AMD under this Agreement may not be transferred, assigned, or sublicensed, except in connection with the transfer, sale, or purchase of substantially all of the assets of one or more lines of business by AMD.  In connection with any such transfer, AMD shall have the right to assign the rights provided for under by this Agreement to a third-party transferee; however, in the event of assignment the patent license set forth in Section 3 above will not extend to products already being made or sold by the transferee as of the date of the transfer or products made or sold by the transferee after the date of transfer.  AMD shall provide written notice to OPTi of any such transfer at least thirty (30) days prior to or after the date of such transfer.  Nevertheless, the transferee may under the license granted herein continue to make and sell the same products and derivatives thereof as made and sold by AMD and in similar volumes as at the time of transfer.

 

  

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VII.           REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS

7.1           Representation, Warranties and Undertakings of OPTi.  Licensor hereby represents, warrants, covenants and agrees that:

	
(a)  

	
Licensor is a corporation validly existing and in good standing under the laws of the State of California, and has full corporate power and authority to enter into this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.

	
(b)  

	
The execution and delivery by Licensor of this Agreement and the performance by Licensor of its obligations hereunder have been duly and validly authorized by Licensor.  Licensor has duly and validly executed this Agreement, which constitutes a legal, valid and binding obligation of Licensor enforceable against Licensor in accordance with its terms.

	
(c)  

	
Licensor has the right to grant the above licenses to the Licensed Intellectual Property and is not a party to any other agreement or under any obligation to any third party that would prevent Licensor from entering into this Agreement.

	
(d)  

	
Licensor has the right to enter into this Agreement on behalf of itself and any Related Parties of Licensor, and that in the event Licensor is not, or ceases to be, the sole owner or exclusive licensor of the intellectual property set forth in this Agreement that Licensor will defend, indemnify and hold harmless, at its own expense, AMD for any assertions regarding the Licensed Intellectual Property.

7.2           Representations and Warranties of AMD.  Licensee hereby represents, warrants, covenants and agrees that:

	
(a)  

	
Licensee is a corporation validly existing and in good standing under the laws of the State of Delaware, and has full corporate power and authority to enter into this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby, and to make the warranties and undertake the obligations herein on behalf of itself.

	
                       (b)

 

 

       (c)

	
The execution and delivery by Licensee of this Agreement and the performance by Licensee of its obligations hereunder have been duly and validly authorized by Licensee.  Licensee has duly and validly executed this Agreement, which constitutes a legal, valid and binding obligation of Licensee enforceable against Licensee in accordance with its terms. 

 

Licensee has the right to enter into this Agreement on behalf of itself and any Related Parties of Licensee.

  

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VIII.           MISCELLANEOUS

8.1           Miscellaneous.  Nothing contained in this Agreement shall be construed as conferring any right to use in advertising, publicity or otherwise, any trademark, trade name, or any contraction, abbreviation or simulation thereof, of either Party except as otherwise permitted herein.  The parties further agree not to use in advertising, publicity or otherwise, any trademark, tradename or name, or any contraction, abbreviation or simulation thereof, of either Party except as otherwise permitted herein.

8.2           Notices.  All notices, requests and other communications hereunder must be in writing in the English language and will be deemed to have been duly given only if delivered personally or by an internationally recognized common carrier’s overnight courier to the Parties at the following addresses:

  

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             If to Licensor:

             OPTi INC.

3430 W. Bayshore Rd., Suite 103

Palo Alto, CA  94303

ATTN:  Chief Executive Officer

With a copy to:

Taras A. Gracey, Esq.

Winston & Strawn LLP

35 West Wacker Drive

Chicago, IL

 

If to Licensee:

             Advanced Micro Devices, Inc.

             One AMD Place

             P.O. Box 3453

             Sunnyvale, California 94088-3453

ATTN:    General Counsel

                                                                 Mail Stop 562

All such notices, requests and other communications shall (a) if delivered personally to the address as provided in this Article, be deemed given upon delivery, b) if delivered by overnight courier in the manner described above to the address provided in this Article, be deemed given upon receipt (in each case regardless of whether such notice, request or other communication is received by any other Person to whom a copy of such notice is to be delivered pursuant to this Article).  Any Party from time to time may change its address upon written notice to the other Party.

8.3           Entire Agreement.  This Agreement constitutes the entire Agreement between the Parties and supersedes all previous communications, representations, agreements or understandings, either oral or written, between the Parties with respect to the subject matter hereof, and this Agreement may be amended supplemented or modified only by a written instrument duly executed by or on behalf of each Party hereto which specifically refers to this Agreement, with handwritten signatures required.

8.4           Waiver.  No express or implied waiver by any of the Parties to this Agreement of any breach of any term, condition or obligation of this Agreement by any other Party shall be construed as a waiver of any subsequent or continuing breach of that term, condition or obligation or of any other term condition or obligation of this Agreement of the same or of a different nature.

8.5           Severability.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under any applicable present or future law, and if the rights or obligations of any Party hereto under this Agreement will not be materially and adversely affected thereby, (a) such provision will fully sever, (b) this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (c) the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance here from and (d) in lieu of such illegal, invalid or unenforceable provision, there will be added automatically as a part of this Agreement, a legal, valid and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible.

8.6           Agency.  The relationship of the Parties under this Agreement is that of independent contractors.  No Party shall be deemed to be the agent of the other, and no Party is authorized to take any action binding upon any other Party.

8.7           Counterparts, Facsimiles, Headings, and Construction.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both together will constitute one and the same instrument.  All headings in this Agreement are inserted for convenience of reference only and shall not affect its meaning or interpretation.  For purposes hereof, a facsimile copy of this Agreement, including the signature pages hereto, shall be deemed to be an original. No rule of strict construction.  Regardless of which party may have drafted this Agreement, no rule of strict construction shall be applied against either party.

8.8           Taxes.  Each party shall be responsible for the payment of its own tax liability arising from this transaction.

  

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IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officer of each Party hereto as of the Effective Date.

                   OPTi INC.                                                                                                         ADVANCED MICRO DEVICES, INC.

	  	
/s/ Michael Mazzoni

	  	
/s/ Harry Wolin

	
Name:

	
Michael Mazzoni

	
Name:

	
Harry Wolin

	
Title:

	
Chief Financial Officer

	
Title:

	
SVP, General Counsel & Secretary

	
Date:

	
April 30, 2010

	
Date:

	
April 30, 2010

  

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SCHEDULE A –OPTi Patents

	
Patent Number

 

	
Title

 

	
6,567,875

	
USB DATA SERIALIZER

	
5,968,151

	
SYSTEM AND METHOD OF POSITIVELY DETERMINING ISA CYCLE CLAIMING

	
5,933,611

	
DYNAMIC SCHEDULER FOR TIME MULTIPLEXED SERIAL BUS

	
5,907,857

	
REFRESH-AHEAD AND BURST REFRESH PREEMPTION TECHNIQUE FOR MANAGING DRAM IN COMPUTER SYSTEM

	
5,900,016

	
SYSTEM FOR USING A CACHE MEMORY WITH A WRITE-BACK ARCHITECTURE

	
5,860,113

	
SYSTEM FOR USING A DIRTY BIT WITH A CACHE MEMORY

	
5,822,768

	
DUAL PORTED MEMORY FOR A UNIFIED MEMORY ARCHITECTURE

	
5,309,568

	
LOCAL BUS DESIGN

	
5,414,827

	
AUTOMATIC CACHE FLUSH

	
5,371,880

	
BUS SYNCHRONIZATION APPARATUS AND METHOD

	
5,448,742

	
METHOD AND APPARATUS FOR LOCAL MEMORY AND SYSTEM BUS REFRESHING WITH SINGLE-PORT MEMORY CONTROLLER AND ROTATING ARBITRATION PRIORITY

	
5,577,214

	
PROGRAMMABLE HOLD DELAY

	
5,469,555

	
ADAPTIVE WRITE-BACK METHOD AND APPARATUS WHEREIN THE CACHE SYSTEM OPERATES IN A COMBINATION OF WRITE-BACK AND WRITE-THROUGH MODES FOR A CACHE-BASED MICROPROCESSOR SYSTEM

	
5,463,759

	
ADAPTIVE WRITE BACK METHOD AND APPARATUS WHEREIN THE CACHE SYSTEM OPERATES IN A COMBINATION OF WRITE-BACK AND WRITE-THROUGH MODES FOR A CACHE-BASED MICROPROCESSOR SYSTEM

	
5,287,481

	
AUTOMATIC CACHE FLUSH WITH READABLE AND WRITABLE CACHE TAG MEMORY

	
5,423,019

	
AUTOMATIC CACHE FLUSH WITH READABLE AND WRITABLE CACHE TAG MEMORY

	
5,426,739

	
LOCAL BUS - I/O BUS COMPUTER ARCHITECTURE

	
5,790,831

	
VL-BUS/PCI-BUS BRIDGE

	
5,974,495

	
USING A BACK-OFF SIGNAL TO BRIDGE A FIRST BUS TO A SECOND BUS

	
5,550,515

	
MULTIPHASE CLOCK SYSTHESIZER HAVING A PLURALITY OF PHASE SHIFTED INPUTS TO A PLURALITY OF PHASE COMPARATORS IN A PHASE LOCKED LOOP

  

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5,710,906

	
PREDICTIVE SNOOPING OF CACHE MEMORY FOR MASTER-INITIATED ACCESSES

	
5,813,036

	
PREDICTIVE SNOOPING OF CACHE MEMORY FOR MASTER-INITIATED ACCESSES

	
6,405,291

	
PREDICTIVE SNOOPING OF CACHE MEMORY FOR MASTER-INITIATED ACCESSES

	
5,905,887

	
CLOCK FREQUENCY DETECTION FOR COMPUTER SYSTEM

	
5,918,072

	
SYSTEM FOR CONTROLLING VARIABLE LENGTH PCI BURST DATA USING A DUMMY FINAL DATA PHASE AND ADJUSTING THE BURST LENGTH DURING TRANSACTION

	
5,805,905

	
METHOD AND APPARATUS FOR ARBITRATING REQUESTS AT TWO OR MORE LEVELS OF PRIORITY USING A SINGLE REQUEST LINE

	
5,768,624

	
METHOD AND APPARATUS FOR EMPLOYING PING-PONG BUFFERING WITH ONE LEVEL DEEP BUFFERS FOR FAST DRAM ACCESS

	
5,890,002

	
SYSTEM AND METHOD FOR BUS MASTER EMULATION

	
6,029,251

	
METHOD AND APPARATUS FOR TEMPERATURE SENSING

	
5,881,271

	
SYSTEM AND METHOD FOR CLOCK MANAGEMENT

	
5,854,638

	
UNIFIED MEMORY ARCHITECTURE WITH PARALLEL ACCESS BY HOST AND VIDEO CONTROLLER

  

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EXHIBIT 10.2

SETTLEMENT AND LICENSE AGREEMENT

 

 

THIS SETTLEMENT AND LICENSE AGREEMENT (hereinafter “Agreement”) is made the 30th day of April, 2010, by and between OPTi INC. (hereinafter “OPTi”) a corporation organized and existing under the laws of the State of California, and ADVANCED MICRO DEVICES, INC. (hereinafter “AMD”), a corporation organized and existing under the laws of the State of Delaware.

WHEREAS, OPTi is the assignee and owner of all rights, titles, and interest in and to numerous patents;

WHEREAS, on July 3, 2007, OPTi instituted an action presently pending in the United States District Court for the Eastern District of Texas (Civil Action No. 2:07-cv-278-TJW) against AMD and others (“the Action”), in which OPTi alleges that certain AMD products infringe the OPTi C-ISA Patents

WHEREAS, the United States Patent and Trademark Office issued United States Patent Nos. 5,944,807, and 6,098,141, and 7,523,245 to Mark Williams and Sukalpa Biswas on August 31, 1999, August 1, 2000, and April 21, 2009 respectively (the “OPTi C-ISA Patents”);

WHEREAS, OPTi and AMD desire to settle and resolve their differences relative to the Action on the terms and conditions set forth herein;

WHEREAS, in consideration of the mutual agreements and covenants set forth herein, OPTi and AMD have agreed to (i) a Stipulation and Order of Dismissal With Prejudice and (ii) the terms of this Settlement and License Agreement, and have consented to the entry of such Stipulation.

NOW, THEREFORE, in consideration of the foregoing and the undertakings and options granted herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the aforementioned Parties agree as follows:

	
1.

	
Definitions.  As used in this Agreement, the following terms shall have the following meanings:

 

	
  

	
a.

	
“OPTi” means OPTi Inc. and its agents, servants, officers, directors, employees, attorneys, divisions, successors, Subsidiaries, and assigns.

 

	
  

	
b.

	
“AMD” means Advanced Micro Devices, Inc. and its agents, servants, officers, directors, employees, attorneys, divisions, successors, subsidiaries, assigns, and Affiliates, including any direct or indirect parent or subsidiary corporations of Advanced Micro Devices, Inc. a Delaware corporation.

 

	
  

	
c.

	
“Affiliate” means a business entity in which OPTi or AMD or their direct or indirect parent or subsidiary corporation possesses, directly or indirectly, at least fifty percent (50%) of the outstanding voting equity.

 

	
  

	
d.

	
“OPTi C-ISA Patents” mean U.S. Patent Nos. 5,944,807, 6,098,141, and 7,523,245, all applications, extensions, renewals, divisionals, continuations, continuations-in-part, reissues, and reexaminations thereof, and all counterpart foreign patents and patent applications, including any and all patents or applications claiming priority therefrom or having common priority therewith.

 

	
 e

	
“Parties” means OPTi and AMD, collectively (each, a “Party”).

 

	
  

	
f.

	
The “Action” means Civil Action No. 2:07-cv-278-TJW pending in the United States District Court for the Eastern District of Texas, Marshall Division.

 

	
  

	
g.

	
“Court” means the United States District Court for the Eastern District of Texas, Marshall Division.

 

 

	
2.

	
Settlement Conditions.

 

	
  

	
a.

	
AMD Payment to OPTi.  AMD shall pay to OPTi the sum of three million U.S. dollars ($3,000,000) by wire transfer within fourteen days of the Effective Date of this Agreement.  The “Effective Date” of this Agreement shall be the later of the dates that this Agreement or the agreement between OPTi and AMD covering OPTi’s other patents is signed by OPTi.

 

	
  

	
b.

	
Dismissal of Claims.  Within thirty (30) days of the execution of this Agreement, the Parties shall execute a Joint Motion to Dismiss with Prejudice in the form attached as Exhibit A hereto, whereby the Parties shall dismiss with prejudice all claims asserted by OPTi against AMD in the Action and all counterclaims and affirmative defenses asserted by AMD against OPTi in the Action.  Counsel for OPTi shall cause such Joint Motion to Dismiss with Prejudice to be filed in the Court within thirty (30) days after the Agreement is executed.

 

	
  

	
c.

	
Release by OPTi of AMD. Except with respect to any breach of this Agreement, OPTi hereby forever releases and discharges AMD from and against any and all claims, liabilities, demands, obligations, rights, damages, costs, expenses, and causes of action of any nature, kind or character (whether tort, contract or statutory, known or unknown, suspected or unsuspected, fixed or contingent) that relate to (a) the OPTi C-ISA Patents or (b) claims and counterclaims asserted in the Action as between AMD and OPTi, inclusive of fees and costs associated with the Action.

 

 

[***]  Confidential treatment requested under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential portion omitted and filed separately with the Commission.

 

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d.

	
Release by AMD of OPTi. Except with respect to any breach of this Agreement, AMD hereby forever releases and discharges OPTi from and against any and all claims, liabilities, demands, obligations, rights, damages, costs, expenses, and causes of action of any nature, kind or character (whether tort, contract or statutory, known or unknown, suspected or unsuspected, fixed or contingent) that relate to the claims and counterclaims asserted in the Action as between AMD and OPTi, inclusive of fees and costs associated with the Action

 

	
3.

	
Patent License.  Effective upon the execution of this Agreement, OPTi hereby grants to AMD a nonexclusive, perpetual, worldwide license under the OPTi C-ISA Patents to import, make, have made, use, sell, and offer to sell any products (throughout this Agreement, “Products” includes devices, software, designs, or any other tangible or intangible property or technology) and to have Products made or performed on behalf of AMD based on a design developed by or for, or otherwise owned and furnished, by AMD.  For avoidance of doubt, the license granted by OPTi to AMD hereunder will [***].

 

 

	
4.

	
[***].

 

 

	
5.

	
Covenant Not To Sue.  OPTi covenants that it will not assert any claims, in or out of a legal proceeding, that any C-ISA patent is infringed, directly or indirectly, by AMD, any customer, distributor, supplier or any other party (collectively, “Customer”) on the basis of that Customer’s use, importation, making, having made, sale, or offer to sell AMD Products, either alone or in combination with any other tangible or intangible property or technology.

 

 

	
6.

	
Limited Right of Assignment.  The rights granted to AMD under this Agreement may not be transferred, assigned, or sublicensed, except in connection with the transfer, sale, or purchase of substantially all of the assets of one or more businesses to which the subject matter of the OPTi C-ISA Patents is related.  In connection with any such transfer, AMD shall have the right to assign the rights provided for under by this agreement to a third-party transferee; however, in the event of assignment the patent license set forth in Section 3 above will not extend to products already being made or sold by the transferee as of the date of the transfer or products made or sold by the transferee after the date of transfer.  AMD shall provide written notice to OPTi of any such transfer at least thirty (30) days prior to or after the date of such transfer.  Nevertheless, the transferee may under the license granted herein continue to make and sell the same AMD Products and derivatives thereof as made and sold by AMD and in similar volumes as at the time of transfer.

 

 

	
7.

	
Warranties.

 

	
  

	
a.

	
Each Party represents and warrants that the Party possesses the right and power to enter into this Agreement and grant the rights granted herein; and,

 

	
  

	
b.

	
Each Party represents and warrants that in executing this Agreement, the Party relied solely upon its own judgment, belief, and knowledge, and the advice and recommendations of its own independently selected counsel, concerning the nature, extent, and duration of its rights, claims, and obligations hereunder and regarding all matters that relate in any way to the subject matter hereof.

 

 

[***]  Confidential treatment requested under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential portion omitted and filed separately with the Commission.

 

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c.

	
OPTi represents and warrants that it is the assignee and owner of all rights, titles, and interest in and to the OPTi C-ISA Patents.

 

 

	
8.

	
Remedies.  Even if a final judgment is entered and affirmed on appeal establishing that any of the OPTi C-ISA Patents is invalid or unenforceable, AMD may not terminate the license granted herein and must comply with the terms of Section 2.

 

 

	
9.

	
Successors and Assigns.  This Agreement shall be binding on each Party and its permitted successors and assigns.

 

 

	
10.

	
Assignability.  Subject to Section 4 and without limitation to the rights specifically granted therein, this Agreement may not be assigned or transferred by either Party without obtaining prior written approval of the other Party.

 

	
11.

	
Assignment of Licensed Intellectual Property.  OPTi may sell, assign, or otherwise transfer any of the C-ISA patents to a third party, provided that the transferred property is subject to all terms of this Agreement, and that any such sale, assignment, or transfer shall be subject to the terms and conditions set forth herein, and OPTi shall notify such third party that the transferred property is subject to the terms of this Agreement, and that any such sale, assignment, or transfer shall be subject to the terms and conditions set forth herein.  OPTi shall ensure that any such transfer shall be binding upon any successor to such rights by, at least, recording such rights and limitations thereupon with any applicable governmental agency.

	
12.

	
Confidentiality Obligation.  The parties hereto shall keep the terms of this Agreement confidential and shall not now or hereafter divulge these terms to any third party except:

	
  

	
(a)

	
with the prior written consent of the other party;

	
  

	
(b)

	
to any governmental body having jurisdiction to call therefor;

	
  

	
(c)

	
subject to (d) below, as otherwise may be required by law or legal process, including to legal and financial advisors in their capacity of advising a party in such matters;

	
  

	
(d)

	
during the course of litigation so long as the disclosure of such terms and conditions are restricted in the same manner as is the confidential information of other litigating parties and so long as (a) the restrictions are embodied in a court-entered Protective Order, and (b) the disclosing party informs the other party in writing at least ten (10) days in advance of the disclosure;

 

[***]  Confidential treatment requested under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential portion omitted and filed separately with the Commission.

 

3

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(e)

	
in confidence to legal counsel, accountants, banks, and financing sources and their advisors solely in connection with complying with financial transactions;

	

	
(f)

	
in confidence to an acquirer or acquiree, and such other party’s legal counsel, accountants, banks and financing sources and their advisors solely in connection with an anticipated merger or acquisition;

	
  

	
(g)

	
to the extent either party concludes that disclosure is required by the Securities and Exchange Act of 1934, as amended, or any other Securities and Exchange Commission law or regulation.

 

	
13.

	
Costs.  Each Party shall bear its own fees and costs related to the Action and the settlement thereof.  In the event of any proceeding seeking resolution of any controversy, claim, or dispute between the Parties arising out of or relating to the terms of this Agreement, the losing Party shall pay the reasonable attorneys’ fees and reasonable costs of the prevailing Party.

 

 

	
14.

	
Severability.  The invalidity or unenforceability of any term of this Agreement shall not affect the validity or enforceability of any other term, the remaining terms being deemed to continue in full force and effect.

 

 

	
15.

	
Waiver and Modification.  No waiver or modification of any right under this Agreement shall be effective unless contained in a writing signed by the Party charged with such waiver or modification, and no waiver or modification of any right arising from any breach or failure to perform shall be deemed a waiver or modification of any future breach or failure of any other right arising under this Agreement.

 

 

	
16.

	
Notices.  All notices to be given to a Party under any of the provisions of this Agreement shall be in writing in the English language and shall be deemed to have been duly given if delivered by hand or mailed by registered, certified mail, or overnight mail service, postage prepaid, to the Party at the address given below:

 

 

[***]  Confidential treatment requested under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential portion omitted and filed separately with the Commission.

 

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If to OPTi::

OPTi Inc.

ATTN: Chief Executive Officer

3430 W. Bayshore Rd., Suite 103

Palo Alto, CA  94303

 

With a copy to:

Taras A. Gracey, Esq.

Winston & Strawn LLP

35 West Wacker Drive

Chicago, IL  60601

	
If to AMD::

 

Advanced Micro Devices, Inc.

ATTN:  General Counsel

Mail Stop 562

One AMD Place

P.O. Box 3453

Sunnyvale, California 94088-3453

 

 

Notices delivered by mail shall be effective three (3) days after mailing.  Such notice will be deemed effective earlier if actually received earlier by the Party.  Either Party may change its address for the purposes of notice under this Agreement by giving the other Party written notice of its new address.

 

	
17.

	
Counterparts, Headings, and Construction.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both together will constitute one and the same instrument.  For purposes hereof, a facsimile copy of this Agreement, including the signature pages hereto, shall be deemed to be an original.  All headings in this Agreement are inserted for convenience of reference only and shall not affect its meaning or interpretation.   No rule of strict construction.  Regardless of which party may have drafted this Agreement, no rule of strict construction shall be applied against either party.

 

	
18.

	
Entire Agreement, Amendments.  This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes any and all prior agreements, understandings, promises, and representations made by either Party to the other concerning the subject matter hereof and the terms of this Agreement.  There are no other agreements or understandings between the Parties regarding this subject matter, written or oral, express or implied.  This Agreement may not be released, discharged, amended, or modified in any manner except by a written instrument signed by duly authorized representatives of each Party.  The Parties acknowledge that OPTi and AMD expect to enter into a second agreement regarding OPTi’s other patents at approximately the same time as this agreement and that this provision does not curtail or eliminate any rights or obligations of AMD and OPTi pursuant to that agreement.

 

 

[***]  Confidential treatment requested under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential portion omitted and filed separately with the Commission.

 

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IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officer of each Party hereto as of the Effective Date.

 

 

 

            /s/ Michael Mazzoni                                                                              /s/ Harry Wolin

 

Name:                Michael Mazzoni                                                               Name:               Harry Wolin

 

Title:                Chief Financial Officer                                                            Title:                SVP, General Counsel & Secretary

 

     

Date:               April 30, 2010                                                                Date:               April 30, 2010

   

 

 

 

[***]  Confidential treatment requested under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential portion omitted and filed separately with the Commission.

 

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EXHIBIT A

 

 

 

  

REDACTED COPY

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF TEXAS

	
OPTi INC.

Plaintiff,

vs.

ADVANCED MICRO DEVICES, INC., et al.

Defendants.

	
§

§

§

§

§

§

§

§

§

§

§

§

 

	
 

 

CIVIL ACTION NO. 2:07-CV-278 (TJW)

 

 

 

 

 

JOINT MOTION TO DISMISS WITH PREJUDICE

 

Plaintiff OPTi Inc. and Defendant Advanced Micro Devices, Inc. hereby announce to the Court that they have settled their respective claims for relief asserted in this cause.  Therefore, the Parties hereby agree to a dismissal with prejudice of all of the claims, counterclaims and affirmative defenses asserted herein between OPTi and AMD and further agree that each party shall each bear its own costs and attorneys’ fees.

The Parties respectfully request that the Court grant their Motion and dismiss with prejudice the claims, counterclaims and affirmative defenses asserted in this cause, and that each party shall bear its own costs and attorneys’ fees.

 

1

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SO AGREED AND STIPULATED:

	
Respectfully submitted,

	
 

Dated:  __________, 2010

 

___________________________________

 

Michael E. Jones – Attorney-In-Charge

John F. Bufe

POTTER MINTON PC

110 N. College Ave., Suite 500

P.O. Box 359

Tyler, Texas  75702

Tel:  (903) 597-8311

Fax:  (903) 593-0846

Email:           mikejones@potterminton.com

johnbufe@potterminton.com

 

Admitted pro hac vice

Mark D. Rowland

Gabrielle E. Higgins

Reeta K. Whitney

ROPES & GRAY LLP

1900 University Avenue, 6th Floor

East Palo Alto, California 94303

Tel:  (650) 617-4000

Fax:  (650) 617-4090

Email:           Robert.Goldman@ropesgray.com

Mark.Rowland@ropesgray.com

Norman.Beamer@ropesgray.com

Gabrielle.Higgins@ropesgray.com

Reeta.Whitney@ropesgray.com

 

 

	
 

 

 

___________________________________

   /s/           Michael L. Brody

Michael L. Brody

Taras A. Gracey

J. Ethan McComb

Eric J. Mersmann

WINSTON & STRAWN LLP

35 West Wacker Drive

Chicago, Illinois 60601

Telephone: (312) 558-5600

Facsimile: (312) 558-5700

mbrody@winston.com

tgracey@winston.com emccomb@winston.com

emersmann@winston.com

 

Sam Baxter – Attorney-In-Charge

Texas State Bar No. 01938000

MCKOOL SMITH, PC

104 E. Houston

Suite 300

Marshall, Texas 75670

Phone: (903) 923-9000

Fax: (903) 923-9099

sbaxter@mckoolsmith.com

 

ATTORNEYS FOR PLAINTIFF OPTI INC.

	  	  

 

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Certificate of Service

 

The undersigned certifies that a true and correct copy of the foregoing document has been served on all counsel of record who are deemed to have consented to electronic service via the Court’s CM/ECF system:

 

___________________________________

  

3

 

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF TEXAS

	
OPTi INC.

Plaintiff,

vs.

ADVANCED MICRO DEVICES, INC., et al.

Defendants.

	
§

§

§

§

§

§

§

§

§

§

§

§

 

	
 

 

CIVIL ACTION NO. 2:07-CV-278 (TJW)

 

 

 

 

 

ORDER GRANTING JOINT MOTION TO DISMISS WITH PREJUDICE

 

This matter came before the Court on Plaintiff OPTi Inc.’s and Defendant Advanced Micro Devices, Inc.’s Joint Motion to Dismiss With Prejudice.  Having considered same, it is hereby, ordered, adjudged, and decreed that all claims, counterclaims and affirmative defenses asserted herein between Plaintiff OPTi Inc. and Advanced Micro Devices, Inc. are dismissed with prejudice, each party to bear its own costs and attorneys’ fees.

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