Document:

exv10w17

 

EXHIBIT 10.17

CONFIDENTIAL TREATMENT REQUESTED

TECHNOLOGY TRANSFER SERVICES AND TECHNOLOGY LICENSE AGREEMENT

     This Technology Transfer Services and Technology License Agreement (“Agreement”) is made and
entered into as of March 25, 2004 (“Effective Date”), by and between Transmeta Corporation, a
Delaware corporation having its principal place of business at 3990 Freedom Circle, Santa Clara, CA
95054, U.S.A. (“Transmeta”) and NEC Electronics Corporation, a Japanese corporation having its
principal place of business at 1753, Shimonumabe, Nakahara-ku, Kawasaki, Kanagawa 211-8668, Japan
(“NECEL”).

RECITALS

     A. Transmeta develops and sells software-based microprocessors and related hardware and
software technologies.

     B. Transmeta has developed certain proprietary power management and related technologies,
including Transmeta Technology (as defined below).

     C. NECEL desires that Transmeta grant NECEL a license under Transmeta’s Intellectual Property
Rights (as defined below) in and to the Transmeta Technology, and Transmeta is willing to grant
NECEL such a license, subject to and in accordance with the terms and conditions of this Agreement,
for NECEL to use the Transmeta Technology only with its * * * CMOS technology generations, and any
intermediate (i.e., internode) generations thereof.

     D. NECEL desires that Transmeta provide NECEL with certain technology transfer and technical
support services related to the Transmeta Technology and Transmeta is willing to provide NECEL with
such services, subject to and in accordance with the terms of this Agreement.

     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 hereto
agree as follows:

	1.  	DEFINITIONS

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
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	1.1  	“Have Manufactured” means for NECEL (or a sublicensed NECEL Subsidiary (as defined below)) to
contract with a third party or parties to perform manufacturing functions for and on behalf of
NECEL (or the sublicensed NECEL Subsidiary).
	 
	1.2  	“Intellectual Property Rights” means patent rights (including patent applications and
disclosures), mask work rights, copyrights, rights in trade secrets and know-how, and any
other intellectual property rights recognized in any country or jurisdiction in the world,
exclusive of rights in and to trademarks, trade names, logos, service marks, other
designations of source and design patents and design patent applications.
	 
	1.3  	“LongRun2 Products” means CMOS integrated circuit semiconductor devices that are based on,
manufactured utilizing, embody, implement, incorporate or practice the Transmeta Technology,
in whole or in part.
	 
	1.4  	“NECEL Improvements” means any improvements, modifications, enhancements, extensions to, or
derivative works based upon the Transmeta Technology, in whole or in part, developed by or for
NECEL or an NECEL Subsidiary.
	 
	1.5  	“Subsidiary” means any entity that a party controls. For purpose of this definition,
“controls” means having: (i) ownership of more than fifty percent (50%) of the equity
securities entitled to vote for the election of directors (or, in the case of an entity that
is not a corporation, for the election of the corresponding managing authority); or (ii) the
right to vote for or appoint a majority of the board of directors or other governing body of
such entity. Any entity will be deemed to be a “Subsidiary” only so long as such control
exists. Subsidiary(ies) of NECEL will be referred to as “NECEL Subsidiary(ies)” and those of
Transmeta will be referred to as “Transmeta Subsidiary(ies)”.
	 
	1.6  	“Patent” means any patent or patent application, worldwide, owned or controlled by a party at
any time during the term of this Agreement, except for design patents and design patent
applications.
	 
	1.7  	“Transmeta Technology” means certain proprietary power management and related technologies,
including technologies referenced as “LongRun2”, which are a collection of technical
approaches which can be used to improve the characteristics of CMOS chips with respect to
total chip power, active power, leakage power, performance, die size, yield and/or production
costs and are a superset of, and therefore include, technologies referenced as “LongRun”, all
as described in Exhibit A attached hereto, and including any improvements,
modifications, enhancements, extensions thereto or derivative works based

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
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	   	thereon, in whole or in part, developed by or for Transmeta or Transmeta Subsidiaries, that
Transmeta provides to NECEL pursuant to the terms of this Agreement.
	 
	1.8  	“Transmeta Technology Deliverables” means those items of Transmeta Technology specified in
Exhibit B, attached hereto, that Transmeta will deliver to NECEL in accordance with
the terms of this Agreement.
	 
	1.9  	“Transmeta Documents” means the documents included in the Transmeta Technology Deliverables
specified in Exhibit B, attached hereto, that Transmeta will deliver to NECEL in
accordance with the terms of this Agreement.
	 
	2.  	LICENSES, LICENSE ROYALTIES AND NON-ASSERTION RIGHTS
	 
	2.1  	License Grant. Subject to NECEL’s compliance with all of the terms and conditions of
this Agreement (including, without limitation, timely payment of all applicable fees,
royalties and any other amounts payable hereunder), Transmeta hereby grants to NECEL a
worldwide, nonexclusive, nontransferable (except as specified in Section 12.1),
non-sublicensable (except as specified in Section 2.2) and royalty-bearing license under all
of Transmeta’s Intellectual Property Rights in and to Transmeta Technology to:

	 	(a)  	use (and have used), reproduce (and have reproduced), modify
(and have modified), extend (and have extended), improve (and have improved)
and create derivative works (and have created derivative works) based upon the
Transmeta Technology solely for the purpose of designing and developing
LongRun2 Products for * * * CMOS semiconductor technology generations (and any
intermediate (i.e. internode) generations thereof) (“Licensed LongRun2
Products”);
	 
	 	(b)  	manufacture (and Have Manufactured), use (and have used),
offer for sale, sell and import Licensed LongRun2 Products; and
	 
	 	(c)  	use (and have used), reproduce (and have reproduced), modify
(and have modified), translate (and have translated), summarize (and have
summarized), and distribute (and have distributed) the Transmeta Documents,
provided that NECEL will comply with the confidentiality obligations hereunder
to the extent Transmeta Confidential Information (as defined below) is
included.

	2.2  	NECEL Subsidiaries. NECEL has the right to sublicense any (or all) of the license
rights granted in Section 2.1 to any NECEL Subsidiary. NECEL,

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
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	   	however, hereby guarantees the compliance by each and
every such NECEL Subsidiary with the terms and conditions
of this Agreement, and NECEL and such NECEL Subsidiaries
shall be jointly and severally liable for any breach
thereof by any such NECEL Subsidiary.
	 
	2.3  	License Restrictions.

	 	(a)  	Restrictions on Have Manufactured Rights. NECEL
acknowledges that any exercise of its “Have Manufactured” rights under Section
2.1 is expressly contingent upon NECEL’s entering into a written agreement
with its contract manufacturer(s) containing provisions that protect
Transmeta’s Intellectual Property Rights in and to the Transmeta Technology,
Transmeta Technology Deliverables and Transmeta’s Confidential Information to
at least the same extent as the terms and conditions of this Agreement; and
which grants Transmeta full rights, as a third party beneficiary, to enforce
all restrictions in such written agreements on the use and disclosure of the
Transmeta Intellectual Property Rights, Transmeta Technology, Transmeta
Technology Deliverables and Transmeta’s Confidential Information. At
Transmeta’s reasonable request, NECEL will furnish Transmeta with a copy of
the applicable portion (which relates to the protection of Transmeta’s
Intellectual Property Rights and Confidential Information) of each such
written agreement. The foregoing shall not apply to those contract
manufacturers (i) which only perform the assembly or testing processes and/or
(ii) to which NECEL will not disclose any Transmeta Technology, Transmeta
Technology Deliverables and Transmeta’s Confidential Information.
	 
	 	(b)  	Specific Restrictions. Without limiting any
restrictions or other limitations specified in Section 2.3(a) above, NECEL
further acknowledges that, in no event, will an NECEL contract manufacturer be
permitted to manufacture, use, offer to sale, sell, import or otherwise
distribute any LongRun2 Product for or on behalf of any party other than NECEL
or an NECEL Subsidiary, as applicable.
	 
	 	(c)  	Limited Rights. NECEL’s rights in the Transmeta
Technology, Transmeta Technology Deliverables and Transmeta’s Confidential
Information will be limited to those expressly granted in this Agreement.
Transmeta reserves all rights in and to the Transmeta Technology, Transmeta
Technology Deliverables and Transmeta’s Confidential Information not expressly
granted to NECEL

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
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	 	   	hereunder. For the avoidance of doubt, NECEL acknowledges and agrees that
it may not use (or have used), reproduce (or have reproduced), modify (or
have modified), extend, improve, create derivative works based upon the
Transmeta Technology, Transmeta Technology Deliverables, or Transmeta
Confidential Information, or manufacture (or Have Manufactured), offer for
sale, sell or import the Licensed LongRun2 Product, except as expressly
authorized in this Agreement.

	2.4  	Royalties. For each Licensed LongRun2 Product sold or Otherwise Disposed of (as
defined in Exhibit E) by or for NECEL or NECEL Subsidiaries, NECEL will pay Transmeta the
non-refundable royalties calculated in accordance with the applicable royalty schedule set
forth in Exhibit E. Royalties shall accrue upon the shipment of each Licensed
LongRun2 Product. Within * * * after (i) the end of each calendar quarter during the term of
this Agreement in which the royalty accrues and (ii) the termination of this Agreement, NECEL
shall submit to Transmeta the payment of royalties due as shown in the Royalty Report (as
defined below). No royalty shall accrue for any Licensed LongRun2 Products shipped as a
replacement for any defective Licensed LongRun2 Products or shipped by NECEL and/or NECEL
Subsidiaries for sample shipments without any charge to their customers. Royalties already
paid for any Licensed LongRun2 Products shipped but returned will be credited against future
royalties to be paid by NECEL to Transmeta.
	 
	2.5  	Most Favored Pricing. If, subsequent to the Effective Date of this Agreement,
Transmeta enters into a similar license agreement for the Transmeta Technology with an
unrelated third party similarly situated to NECEL, and such agreement provides for royalty
terms more favorable than the corresponding terms specified in this Agreement, then, at
NECEL’s option, this Agreement will be amended to incorporate such more favorable terms, which
terms shall come into effect as of the effective date of such more favorable third party
agreement, and if necessary, the parties shall make the appropriate royalty adjustments, which
will be applicable to all Licensed LongRun2 Products shipping after the date of such
amendment.
	 
	2.6  	Non-Assertion of Patent Rights in NECEL Improvements. NECEL, on behalf of itself and
all NECEL Subsidiaries, hereby covenants not to sue for infringement of or otherwise assert
rights in any of its Patents in or to NECEL Improvements against:

	 	(a)  	Transmeta and Transmeta Subsidiaries;

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
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	 	(b)  	distributors and customers (including but not limited to
end-user customers) of Transmeta and Transmeta Subsidiaries (hereinafter
collectively “Protected Parties”); on the grounds that such Protected Parties
are using, selling, offering for sale, importing, exporting, or otherwise
distributing LongRun2 Products manufactured by, for, on behalf of or at the
request of Transmeta or Transmeta Subsidiaries; and
	 
	 	(c)  	contract semiconductor device manufacturers of Transmeta and
Transmeta Subsidiaries (“Fabs”), on the grounds that such Fabs are
manufacturing LongRun2 Products for, on behalf of or at the request of
Transmeta or Transmeta Subsidiaries.

	   	For the avoidance of doubt, in no event shall this obligation be construed to restrict
NECEL’s right to assert rights in any of its Patents in or to NECEL Improvements against such
Protected Parties concerning such Protected Parties’ use, sale, offering of sale, import,
export or distribution of any product other than the LongRun2 Products, nor shall this
obligation be construed to restrict NECEL’s right to assert rights in any of its Patents in
or to NECEL Improvements against any Fab concerning its manufacture of any product other than
LongRun2 Products or such Fab’s manufacture of LongRun2 Products not for, on behalf or at the
request of Transmeta or Transmeta Subsidiaries.
	 
	2.7  	Release. Notwithstanding Section 2.6 above, if Protected Parties or Fabs first sue
or make a written allegation against NECEL and/or NECEL Subsidiaries for patent infringement
which relates to NECEL Improvements, then NECEL’s or NECEL Subsidiaries’ covenants not to sue
set forth in Section 2.6 above shall not apply to such party which sues or makes a written
allegation.
	 
	2.8  	Additional Patent Licensing. At Transmeta’s request, at any time during the term of
this Agreement, NECEL will negotiate in good faith the granting of a license under any NECEL
Patent related to Transmeta’s LongRun2 Products. The terms of such license, including any
applicable royalty, will be on a reasonable and non-discriminatory basis, and if agreed upon,
will be documented in a separate agreement.
	 
	3.  	TECHNOLOGY TRANSFER SERVICES AND FEES THEREFOR
	 
	3.1  	Transmeta Obligations: Subject to NECEL’s payment of the technology transfer
services fee in accordance with Section 3.5 below, Transmeta will provide NECEL with the
following services for technology transfer:

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
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	 	(a)  	Transmeta Technology Deliverables and Training.
During the * * * period following the Effective Date (the “Technology Transfer
Services Period”), Transmeta will deliver to NECEL: (i) the Transmeta
Technology Deliverables as set forth in Exhibit B as soon as
reasonably practical after such deliverables become available, but in no event
later than * * *; and (ii) certain technology training as set forth in Exhibit
B in accordance with the terms specified therein (“Technology Transfer
Training””). Unless otherwise agreed in writing between the parties, Transmeta
will have no obligation to provide additional deliverables or training of any
kind after the expiration of the Technology Transfer Services Period
	 
	 	(b)  	Technical Support Services. During the Technology
Transfer Services Period, Transmeta will provide to NECEL certain technical
support services, as specified in Exhibit C (“Technical Support
Services”).
	 
	 	(c)  	Maintenance Services. During the Technology Transfer
Services Period, Transmeta will provide or make available to NECEL the
maintenance services as specified in Exhibit C (“Maintenance Services”).

	3.2  	Additional Maintenance Services. Upon the expiration of the Technology Transfer
Services Period, NECEL may, at its option, request Transmeta to continue providing Maintenance
Services, at a reasonable separate fee. The terms and conditions for such additional
Maintenance Services shall be discussed in good faith and, if agreed upon, will be documented
in a separate agreement. Notwithstanding anything else set forth herein, unless otherwise
agreed in writing between the parties, Transmeta’s obligation to provide Technology Transfer
Training and/or Technical Support Services shall not extend beyond the expiration of the
Technology Transfer Services Period, even in the event that NECEL has not by that time fully
utilized all Technical Support Services described in Exhibit C, has not succeeded in
“bringing up” a LongRun2 Product production process, or has not successfully manufactured a
LongRun2 Product.
	 
	3.3  	Provision of Transmeta Technology “AS IS”. The Transmeta Technology, Transmeta
Technology Deliverables, Technology Transfer Training, Technical Support Services and
Maintenance Services are provided “AS IS”.
	 
	3.4  	Acknowledgement of Confidential Information. NECEL acknowledges that the Transmeta
Technology, Transmeta Technology Deliverables, Technology

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
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	   	Transfer Training, Technical Support Services and Maintenance Services contain and will
disclose to NECEL certain highly valuable trade secrets of Transmeta.
	 
	3.5  	Technology Transfer Services Fee. In consideration of Transmeta’s delivery of the
Transmeta Technology Deliverables and Technology Transfer Training pursuant to Section 3.1(a)
during the Technology Transfer Services Period, NECEL will pay Transmeta a one-time technology
transfer fee of * * * in accordance with the payment schedule set forth in Exhibit D.
The technology transfer fee payable by NECEL hereunder is non-refundable, non-recoupable, and
is not creditable against the royalties which may become payable by NECEL under Section 2.4.
This payment is in no way dependent upon NECEL successfully manufacturing a LongRun2 Product
or “bringing up” a LongRun2 Product production process.
	 
	3.6  	Technical Support Services and Maintenance Services Fee. In consideration of
Transmeta’s providing Technical Support Services pursuant to Section 3.1(b) and Maintenance
Services pursuant to Section 3.1(c) during the Technology Transfer Services Period, NECEL will
pay Transmeta a fee of * * * in accordance with the payment schedule set forth in Exhibit
D. The fee for Technical Support Services and Maintenance Services payable by NECEL
hereunder is non-refundable, non-recoupable, and is not creditable against the royalties which
may become payable by NECEL under Section 2.4. This payment is in no way dependent upon NECEL
successfully manufacturing a LongRun2 Product or “bringing up” a LongRun2 Product production
process.
	 
	3.7  	Reservation of Rights. Nothing in this Section 3 will be deemed to limit NECEL’s
right to seek damages in connection with a termination of this Agreement by NECEL pursuant to
Section 6.2.
	 
	4.  	PAYMENT, INTEREST AND TAXES
	 
	4.1  	Payment Method. All payments shall be made in U.S. dollars at the telegraphic
transfer selling (TTS) exchange rate of the bank of NECEL’s choice by wire transfer to the
bank account to be separately designated in writing by Transmeta.
	 
	4.2  	Interest and Other Payment Terms. Any payments made after the applicable due date
will incur interest at the rate of * * *. All amounts specified in this Agreement will be
paid in U.S. dollars and will not be subject to setoff against any amounts of claims that
Transmeta owes to NECEL under this Agreement or under any other agreement.
	 
	4.3  	Taxes. NECEL will pay any and all national, state, prefecture, city, local and other
excise, sales, use, value-added and other taxes and duties imposed by any

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
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	   	and all applicable laws and regulations in respect of the payments made under this
Agreement or otherwise arising out of this Agreement, other than taxes based upon
Transmeta’s net income. If it is required under applicable law, NECEL may pay, on
Transmeta’s behalf, any withholding taxes that are required to be paid under applicable
law. In this event, NECEL will furnish Transmeta with written documentation of such
payments, including but not limited to receipts, of any and all such taxes paid by NECEL.
	 
	5.  	RECORDS AND AUDIT REQUIREMENTS
	 
	5.1  	Records. For at least * * * after the completion of each calendar quarter, NECEL
will maintain complete and accurate books, records and accounts as are reasonably necessary to
verify the royalty payments made by NECEL hereunder.
	 
	5.2  	Reports. Within * * * after (i) the end of each calendar quarter during the term of
this Agreement; and (ii) the termination of this Agreement, NECEL will furnish to Transmeta a
written report specifying the royalties owed for the relevant period (“Royalty Report”). If
no royalties are due, that fact will be shown on such Royalty Report. The content, form and
format of such Royalty Reports will be as mutually agreed to by the parties, but will include,
at a minimum, the quantity and average sales price of each royalty-bearing Licensed LongRun2
Product type upon which a royalty fee is due and whether royalty schedule (a) or (b) of
Exhibit E was used to determine the royalty payment due.
	 
	5.3  	Audit. During the term of this Agreement and for a period of * * * thereafter, upon
at least * * * prior written notice to NECEL, Transmeta will have the right, at its own cost
and expense, to authorize a certified public accounting firm, with NECEL’s prior consent which
will not be unreasonably withheld or delayed, to audit NECEL’s books, records, and accounts,
and other relevant information for the purpose of verifying the accuracy of the amount of
royalties reported by NECEL in Royalty Reports pursuant to Section 5.2, provided that such
audit shall be conducted during the normal business hours of NECEL and no more frequently than
once a year. If the accounting firm concludes that additional amounts were owed during the
audited period, NECEL will pay such additional amounts plus interest calculated in accordance
with Section 4.2, within * * * of the date Transmeta delivers the accounting firm’s written
report to NECEL. Transmeta will pay the fees and expenses charged by the accounting firm;
provided however, if the audit discloses that the royalties payable by NECEL for the audited
period are * * * of the amounts actually paid for such period, then NECEL will pay the
reasonable fees and expenses charged by the accounting firm.
	 
	6.  	TERM AND TERMINATION

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
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	6.1  	Term. This Agreement will begin on the Effective Date and will remain in force
unless and until terminated in accordance with Section 6.2 or 6.3 below.
	 
	6.2  	Termination. Either party may terminate this Agreement: (i) if the other party
breaches any material term or condition of this Agreement that is curable and fails to cure
such breach within * * * following receipt of written notice from the
non-breaching party; or (ii) immediately upon written notice to the other party if such other
party breaches any material term or condition of this Agreement that is not curable.
	 
	6.3  	Termination for Convenience. After the expiration of the Technology Transfer Services
Period, NECEL may terminate this Agreement for convenience by giving * * * prior written
notice to Transmeta.
	 
	6.4  	Effect of Termination. Upon the termination of this Agreement by either party for
any reason: (i) except as otherwise expressly provided in this Agreement, all licenses and
rights granted to NECEL hereunder will immediately terminate; (ii) NECEL shall promptly return
to Transmeta or destroy all of Transmeta’s Confidential Information and all Transmeta
Technology Deliverables in its possession or control, and provide Transmeta with an officer’s
written certification, certifying to the return or destruction of all such Transmeta’s
Confidential Information and Transmeta Technology Deliverables, provided that NECEL (and
sublicensed NECEL Subsidiaries) may retain a reasonable number of copies thereof necessary for
the provision of maintenance services to its then existing customers to which NECEL and/or
NECEL Subsidiaries had already sold or otherwise distributed the Licensed LongRun2 Products;
and (iii) Transmeta shall promptly return to NECEL or destroy all of NECEL’s Confidential
Information that Transmeta may have obtained through the course of this Agreement, and provide
NECEL with an officer’s written certification, certifying to the return or destruction of all
such Confidential Information.
	 
	6.5  	Survival. NECEL’s obligation to pay any accrued unpaid amounts due to Transmeta will
survive termination of this Agreement for any reason. The rights and obligations of the
parties under Sections 1, 2.3, 3.3, 3.4, 3.7, 4, 5, 6.4, 6.5, 7, 8, 9, 10, 11 and 12 of this
Agreement also will survive the termination of this Agreement for any reason. The license
rights granted by Transmeta under Sections 2.1 and 2.2 and the covenants not to sue granted by
NECEL under Section 2.6 (along with the release thereof set forth in Section 2.7) will survive
termination of this Agreement for any reason with respect to any and all products sold and
invoiced prior to the effective date of termination. In addition, and without limiting the
foregoing, in the event Transmeta terminates this Agreement pursuant to Section 6.2 for
NECEL’s breach, the covenants not to sue granted by NECEL under Section 2.6 (along with the
release thereof set forth in Section 2.7)

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
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	   	shall survive and shall continue to apply to products made and processes used before, on
and after the effective date of termination.
	 
	7.  	CONFIDENTIALITY
	 
	7.1  	Confidential Information. “Confidential Information” means: any business or
technical information that a party hereto desires to protect against unauthorized use or
disclosure and is identified and/or marked by the disclosing party as Confidential Information
at the time of disclosure, including but not limited to any information relating to business
processes, operations, product plans, designs, costs, product prices and names, finances,
marketing plans, business opportunities, personnel, research, development or know-how; and the
terms and conditions of this Agreement. In addition, for the purpose of this Agreement (i) the
Transmeta Technology and Transmeta Technology Deliverables and (ii) information disclosed by
Transmeta in connection with providing Technology Transfer Training pursuant to Section 3.1(a)
and Technical Support Services pursuant to Section 3.1(b) shall be deemed Transmeta’s
Confidential Information unless and until such information falls into any of the exceptions as
provided in Section 7.3 below.
	 
	7.2  	Use and Disclosure Restrictions. Neither party will use the other party’s
Confidential Information except for the purposes of exercising its rights and fulfilling its
obligations hereunder, and will not disclose such Confidential Information to any third party
except to its employees and consultants as is reasonably required in connection with the
exercise of its rights and the fulfillment of its obligations under this Agreement (and, in
case of any consultants, only subject to binding use and disclosure restrictions at least as
protective as those set forth herein to be executed in writing by such consultants). In
addition, NECEL may disclose Transmeta’s Confidential Information to any (i) NECEL Subsidiary
to which NECEL grants a sublicense pursuant to Section 2.2 hereof and (ii) to any third party
manufacturer of NECEL or such a sublicensed NECEL Subsidiary for the purpose of exercising its
rights under Section 2.1(b). Each party will use all reasonable efforts to protect and to
maintain the confidentiality of all of the other party’s Confidential Information in its
possession or control by using the efforts that such party ordinarily uses with respect to its
own proprietary information of similar nature and importance, but in no event less than
reasonable efforts. The foregoing obligations will 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; (ii) on a
confidential basis to its legal or professional financial advisors; (iii) as required under
applicable securities regulations; and

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	11
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	   	(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 investors in or acquirers of such party or its assets associated
with the subject matter of this Agreement.
	 
	7.3  	Exclusions. The obligations set forth in Section 7.2 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) the receiving party can document was rightfully
known to the receiving party at the time of disclosure without an obligation of
confidentiality; (iii) the receiving party can document 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.
	 
	8.  	OWNERSHIP
	 
	8.1  	Transmeta Ownership. NECEL acknowledges and agrees that, as between Transmeta and
NECEL, Transmeta owns all right, title, and interest in and to the Transmeta Technology
Deliverables, Transmeta Technology and Transmeta’s Confidential Information, including all
Intellectual Property Rights therein, subject to the license rights granted therein.
	 
	8.2  	NECEL Ownership. Transmeta acknowledges and agrees that, as between NECEL and
Transmeta, NECEL owns all right, title, and interest in and to the NECEL Improvements and
NECEL’s Confidential Information, including all Intellectual Property Rights therein, subject
to the obligation not to assert certain Patent rights as set forth herein.
	 
	8.3  	Proprietary Notices. NECEL 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 Transmeta Technology and/or Transmeta Technology Deliverables, as
provided or otherwise made available by Transmeta hereunder. NECEL shall reproduce such
notices on all copies it makes of the Transmeta Technology and Transmeta Technology
Deliverables, as permitted hereunder.
	 
	9.  	REPRESENTATIONS AND WARRANTIES
	 
	9.1  	Warranty of Authority. Each party represents and warrants to the other party that it
has the necessary corporate power, right and authority to enter into this Agreement, to carry
out its obligations under this Agreement, and to grant the rights herein granted.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	12
	 	March 25, 2004

 

 

	9.2  	Warranty Disclaimer. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, TRANSMETA
SPECIFICALLY AND EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED,
STATUTORY OR OTHERWISE, INCLUDING ANY IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, QUALITY, OR NON-INFRINGEMENT, EVEN IF TRANSMETA HAS BEEN
MADE AWARE OF ANY PARTICULAR NECEL REQUIREMENTS.
	 
	10.  	INFRINGEMENT INDEMNITY
	 
	10.1  	Transmeta Obligations. Subject to Sections 10.2, 10.3, and 10.5, Transmeta will, at
its expense: (i) defend any third-party action or proceeding brought against NECEL (or an
NECEL Subsidiary) to the extent that it is based upon a claim that the Transmeta Technology
and/or Transmeta Technology Deliverables, as provided by Transmeta to NECEL under this
Agreement, infringes or misappropriates any Intellectual Property Rights of any third party
and (ii) settle such claim and pay any costs, damages and reasonable attorneys’ fees
attributable to such claim incurred by NECEL and/or NECEL Subsidiaries in relation to this
claim or that are payable in a settlement approved in advance and in writing, by Transmeta,
provided, however, that Transmeta shall not enter into any settlement that adversely affects
NECEL’s rights, or imposes any obligations upon NECEL, without NECEL’s prior written consent.
	 
	10.2  	NECEL Obligations. Subject to Sections 10.1 and 10.3, NECEL will, at its expense:
(i) defend any third-party action or proceeding brought against Transmeta to the extent that
it is based on a claim arising out of or resulting from NECEL’s or any NECEL Subsidiary’s
manufacturing, use, offer for sale, sale, licensing, duplication, distribution, marketing,
export and/or import of any LongRun2 Product, except to the extent based upon a claim covered
by Section 10.1; and (ii) settle such claim and pay any costs, damages and reasonable
attorneys’ fees attributable to such claim incurred by Transmeta in relation to this claim or
that are payable in settlement approved in advance and in writing, by NECEL, provided,
however, that NECEL shall not enter into any settlement that adversely affects Transmeta’s
rights, or imposes any obligations upon Transmeta, without Transmeta’s prior written consent.
	 
	10.3  	Conditions to Defense Obligations. For the purposes hereof, the “Defending Party”
means the party requested to defend the other party under Section 10.1 or 10.2, as the case
may be, and the “Defended Party” means the party making such a request. The Defending Party
will have no obligations to the Defended Party under this Section 10 unless the Defended
Party: (i) provides the Defending Party with prompt written notice of the claim; (ii)
provides the Defending Party with all

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	13
	 	March 25, 2004

 

 

	   	reasonable information and assistance, at the Defending Party’s expense, to defend or
settle the claim; and (iii) (subject to the provisos as set forth in Sections 10.1 (ii) and
10.2 (ii),) grants the Defending Party authority and sole control of the defense and
settlement of the claim. The Defended Party reserves the right to retain counsel, at the
Defended Party’s expense, to participate in the defense and settlement of any such claim.
	 
	10.4  	Injunctions. If NECEL’s use of the Transmeta Technology and/or Transmeta Technology
Deliverables is, or in Transmeta’s opinion is likely to be, enjoined due to the type of claim
specified in Section 10.1 above, then Transmeta will, at its sole option and expense: (i)
procure for NECEL the right to continue using the Transmeta Technology and/or Transmeta
Technology Deliverables under the terms of this Agreement; and/or (ii) replace or modify the
Transmeta Technology and/or Transmeta Technology Deliverables to make it non-infringing but
substantially equivalent in function; or (iii) if options (i) and (ii) above cannot be
accomplished despite Transmeta’s best efforts, then Transmeta and NECEL will work together to
determine an alternative solution.
	 
	10.5  	Exclusions. Notwithstanding the terms of Section 10.1, Transmeta will have no
liability for any infringement or misappropriation claim of any kind to the extent it results
from: (i) modifications to the Transmeta Technology or Transmeta Technology Deliverables not
made by Transmeta or a party authorized in writing by Transmeta, if a claim would not have
occurred but for such modifications; (ii) the combination, operation or use of the Transmeta
Technology or Transmeta Technology Deliverables with any data, software, products or devices
not provided by Transmeta or in connection with processes not provided by Transmeta, if a
claim would not have occurred but for such combination, operation or use; (iii) NECEL’s
failure to use updated or modified versions of the Transmeta Technology or Transmeta
Technology Deliverables provided by Transmeta to avoid a claim; or (iv) use of the Transmeta
Technology or Transmeta Technology Deliverables by or on behalf of NECEL or any NECEL
Subsidiary other than in accordance with this Agreement.
	 
	10.6  	Sole Remedy. THE PROVISIONS OF THIS SECTION 10 SET FORTH TRANSMETA’S SOLE AND
EXCLUSIVE OBLIGATIONS, AND NECEL’S SOLE AND EXCLUSIVE REMEDIES, WITH RESPECT TO ANY
INTELLECTUAL PROPERTY INFRINGEMENT OR MISAPPROPRIATION CLAIMS OF ANY KIND RELATED TO THE
TRANSMETA TECHNOLOGY, TRANSMETA TECHNOLOGY DELIVERABLES, LONGRUN2 PRODUCTS, AND ANY TECHNOLOGY
TRANSFER TRAINING, TECHNICAL SUPPORT SERVICES AND MAINTENANCE SERVICES PROVIDED BY OR FOR
TRANSMETA UNDER THIS AGREEMENT.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	14
	 	March 25, 2004

 

 

	11.  	LIMITATION OF LIABILITY
	 
	11.1  	Exclusion of Damages. NEITHER PARTY WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL,
PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF USE, DATA, BUSINESS, PROFITS,
OR GOODWILL) IN CONNECTION WITH, ARISING OUT OF, OR RELATING TO THIS AGREEMENT OR THE USE OF
THE TRANSMETA TECHNOLOGY, TRANSMETA TECHNOLOGY DELIVERABLES OR FROM TECHNOLOGY TRANSFER
TRAINING, TECHNICAL SUPPORT SERVICES OR MAINTENANCE SERVICES PERFORMED BY TRANSMETA UNDER THIS
AGREEMENT, WHETHER SUCH LIABILITY ARISES FROM ANY CLAIM BASED UPON CONTRACT, WARRANTY, TORT
(INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE, AND WHETHER OR NOT A PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. The foregoing limitation will not apply to or
restrict in any manner: (a) either party’s liability arising from a breach of Section 7; (b)
either party’s liability arising out of any infringement, misappropriation or violation by the
other party’s Intellectual Property Rights; or (c) NECEL’s liability arising from a breach of
Section 2.3.
	 
	11.2  	Total Liability. TRANSMETA’S TOTAL LIABILITY TO NECEL IN CONNECTION WITH, ARISING
OUT OF, OR RELATING TO THIS AGREEMENT, FROM ALL CAUSES OF ACTION AND THEORIES OF LIABILITY,
WILL BE LIMITED TO AND WILL NOT EXCEED * * *.
	 
	11.3  	Acknowledgment. NECEL acknowledges that Transmeta has entered into this Agreement in
reliance on the above limitations of liability, and that the same constitute a basis of the
bargain between the parties. The parties have agreed that the limitations 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.
	 
	12.  	GENERAL PROVISIONS
	 
	12.1  	Assignment. (a) Neither party may assign or transfer this Agreement, 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 delayed or withheld; provided that any
such assignee or transferee shall agree in writing to be bound by the terms and conditions of
this Agreement. Any attempt to assign or

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	15
	 	March 25, 2004

 

 

	   	transfer this Agreement, without such consent, will be null and void and without effect.
Notwithstanding the foregoing, subject to Section 12.1(b) below, either party may assign or
transfer this Agreement, without the other party’s consent, to a third party that succeeds
all or substantially all of its assets or related business (whether by sale, merger,
operation of law or otherwise), and Transmeta may so assign this Agreement to an assignee
or transferee of, or successor in interest to, Transmeta’s rights to license the
Intellectual Property Rights in and to the Transmeta Technology; provided that any such
assignee, transferee or successor in interest agrees in writing to be bound by the terms
and conditions of this Agreement. Subject to the foregoing, 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. NECEL agrees, represents and warrants on
behalf of itself and all NECEL Subsidiaries that it will not transfer or assign any Patents
in or to NECEL Improvements, except under terms and conditions that bind the transferee or
assignee to the terms of Sections 2.6.
	 
	   	(b) Notwithstanding anything to the contrary in Section 12.1(a) above, the covenant not to
sue set forth in Section 2.6 above shall terminate upon any transfer or assignment by
Transmeta of this Agreement to a third party except where such third party is a Transmeta
Subsidiary or a company which may be formed as a result of a spin-off of related business of
Transmeta.
	 
	12.2  	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.
	 
	12.3  	Equitable Relief. Each party acknowledges and agrees that any breach of this
Agreement with respect to the other party’s Intellectual Property Rights or Confidential
Information may cause such other party to incur irreparable harm and significant injury that
would be difficult to ascertain and would not be compensable by damages alone. Accordingly,
each party acknowledges and agrees that, in addition to any and all remedies that the
non-breaching party may have at law or otherwise with respect to such a breach, the
non-breaching party will have the right to obtain specific performance, injunction or other
appropriate equitable relief.
	 
	12.4  	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

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	16
	 	March 25, 2004

 

 

	   	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.

	 	 	 
	Transmeta:

	 	NECEL:
	David R. Ditzel

	 	Seishi Yamasaki
	* * *

	 	* * *
	 
	 	 
	With a copy to:

	 	With a copy to:
	John O’Hara Horsley

	 	Hideaki Kageyama
	* * *

	 	* * *
	 
	 	 
	

	 	     and
	 
	 	 
	

	 	Taizo Matsumori
	

	 	* * *

	12.5  	Compliance with Law; Export Controls. Each party will comply with all laws and
regulations applicable to such party’s performance of this Agreement. Without limiting the
generality of the foregoing, each party will comply fully with all relevant export laws and
regulations of the United States and Japan 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, but not limited to, nuclear,
chemical, or biological weapons proliferation.
	 
	12.6  	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.
	 
	12.7  	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.
	 
	12.8  	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.
	 
	12.9  	Force Majeure. Neither party will be liable to the other party for any delay or
failure in its performance of this Agreement to the extent that such delay or failure

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	17
	 	March 25, 2004

 

 

	   	is due to causes beyond it’s reasonable control, including, but not limited to, acts of
God, fires, explosions, labor disputes, war, terrorism, riots, inability to obtain energy
or supplies, provided, that the non-performing party promptly furnishes notice to the other
party and resumes performance as soon as practicable.
	 
	12.10  	Governing Law. This Agreement will be governed by and construed in accordance with
the laws of the State of California. The parties expressly disclaim the application of the
U.N. Convention on Contracts for the International Sale of Goods.
	 
	12.11  	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.
	 
	12.12  	Publicity. Except as required by applicable law, neither party will individually
make or issue any press release or public statement related to this Agreement or any of the
rights or obligations undertaken by either party hereunder unless agreed otherwise in writing
by both parties prior to the issuance of any such press release or public statement, provided
that if a party is required by applicable law to make or issue any press release or statement,
such party shall immediately notify the other party and both parties shall discuss in good
faith the contents and timing thereof.
	 
	12.13  	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.
	 
	12.14  	Negotiations. The parties will attempt to resolve all disputes, claims, or
controversies arising under or related to this Agreement or its subject matter or any right or
obligation created by this Agreement (“Dispute”) through good faith negotiations conducted by
the representatives of the parties. The party asserting the Dispute will give prompt notice
to the other party describing the Dispute in reasonable detail (“Dispute Notice”).
	 
	12.15  	Arbitration. If the parties are unable to resolve a Dispute through good faith
negotiations conducted in accordance with the provisions of Section 12.14 above, then, the
Dispute will be resolved by binding arbitration conducted (i) in Santa Clara County,
California by the American Arbitration Association (“AAA”) in accordance with its Commercial
Arbitration Rules then in effect if Transmeta is

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	18
	 	March 25, 2004

 

 

	   	the defendant, and (ii) in Tokyo, Japan by the Japan Commercial Arbitration Association in
accordance with its Commercial Arbitration Rules then in effect if NECEL is the defendant.
The arbitration will be conducted in the English language. The number of arbitrators shall
be three (3) and they shall be appointed in accordance with the applicable rules. The award
rendered by the arbitrators will be final, binding and non-appealable. Judgment upon such
award may be entered in any court of competent jurisdiction. All costs incurred in
conducting the arbitration (other than fees of counsel) will be shared equally by the
parties.
	 
	12.16  	Reservation of Rights. Notwithstanding the foregoing provision of Section 12.15,
each party reserves the right to seek injunctive or other equitable relief in a court of
competent jurisdiction with respect to any Dispute related to the actual or threatened
infringement, misappropriation or violation of a party’s Intellectual Property Rights or
breach of Section 2 hereof.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	19
	 	March 25, 2004

 

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
duly-authorized representatives as of the Effective Date.

	 	 	 	 	 	 	 
	TRANSMETA CORPORATION:	 	NEC ELECTRONICS CORPORATION:
	 
	 	 	 	 	 	 
	By:

	 	/s/
	 	By:
	 	/s/
	

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	Matthew R. Perry
	 	Name:
	 	Hirokazu Hashimoto
	

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	President and CEO
	 	Title:
	 	Executive Vice President
	

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	March 25, 2004
	 	Date:
	 	March 25, 2004
	

	 	 
	 	 	 	 

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	20
	 	March 25, 2004

 

 

EXHIBIT A

Transmeta Technology

Transmeta’s LongRun and LongRun2 technologies are a collection of technical approaches that can be
used to improve the characteristics of CMOS chips with respect to total chip power, active power,
leakage power, performance, die size, yield and production costs.

Certain portions of the LongRun technology were first incorporated in Transmeta’s Crusoe processor,
introduced in January 2000, and relate primarily to mechanisms designed to provide the ability to
dynamically change the voltage and MHz of a chip. * * * *

[* * *]

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	21
	 	March 25, 2004

 

 

EXHIBIT B

Transmeta Technology Deliverables

The following documents will be delivered substantially in the form described below, although the
exact titles and contents may change. The specific titles and bulleted descriptions are meant to
be indicative of the content of each document.

	1.  	Transmeta LongRun Power Management Overview

	 	   	[* * *]

	2.  	Transmeta LongRun Code Morphing Software Examples

	 	•  	Examples and documentation of * * *

	3.  	Transmeta LongRun Product Engineering Documentation

	 	   	[* * *]

	4.  	Transmeta LongRun Circuit Design Guide

	 	   	[* * *]

	5.  	Transmeta LongRun2 Power Management Overview

	 	   	[* * *]

	6.  	Transmeta LongRun2 * * * Design Guide

	 	   	[* * *]

	7.  	Transmeta LongRun2 Circuit Design Guide

	 	   	[* * *]

	8.  	Transmeta LongRun2 * * * methodology

	 	   	[* * *]

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	22
	 	March 25, 2004

 

 

	9.  	Transmeta LongRun2 Transistor Optimization Guidelines

	 	   	[* * *]

	10.  	Transmeta * * * Design Guide

	 	   	[* * *]

	11.  	Transmeta’s Presentation Materials

	 	•  	Instructional text, PowerPoint slides and other presentation materials used
in connection with the training classes.
	 
	 	•  	Transmeta’s disclosure of Proprietary Information pursuant to that certain
Mutual Non-Disclosure Agreement between Transmeta and NECEL * * *.

	12.  	Transmeta Technology Training
	 
	   	Transmeta will hold training classes for NECEL on Transmeta’s premises as soon as can be mutually
agreed between the parties, but in no case later than * * *. Training classes will cover each of
the topic areas listed above. Training classes will take no more than * * *.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	23
	 	March 25, 2004

 

 

EXHIBIT C

Technical Support and Maintenance Services

	1.  	Provision of Technical Support Services.

     Subject to NECEL’s payment of the fee for Technical Support Services in accordance with
Section 3.6 of this Agreement, during the Technology Transfer Services Period, Transmeta will make
available to NECEL the types and levels of Technical Support Services as specified in the following
table.

	 	 	 	 	 
	 	 	Approximate	 	 
	Support Services	 	Resources (* * *)1	 	Months2
	* * *
	 	* * *
	 	* * *
	* * *
	 	* * *
	 	* * *
	* * *
	 	* * *
	 	* * *
	* * *
	 	* * *
	 	* * *

	   	Notes to Technical Support Services Table:

	 	1.  	[* * *].
	 
	 	2.  	[* * *].

	2.  	Maintenance Services

     Subject to NECEL’s payment of the fee for Maintenance Services in accordance with Section 3.6
of this Agreement, during the Technology Transfer Services Period, Transmeta will make available to
NECEL the types and levels of Maintenance Services as specified below.

	 	(1)  	Technical services to (a) evaluate, modify or correct any errors reported by
NECEL to Transmeta, and (b) correct or update documentation and/or tangible material,
provide bug fixes, or otherwise maintain the Transmeta Technology, not to exceed * * *.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	24
	 	March 25, 2004

 

 

EXHIBIT D

Service Fees

Technology Transfer Services Fee. Pursuant to Section 3.5, NECEL will pay Transmeta a
one-time technology transfer services fee of * * *, as follows:

	 	 	 
	Installment	 	Due and Payable Date
	 
	 	 
	* * *

	 	* * *
	 
	 	 
	* * *

	 	* * *
	 
	 	 
	* * *

	 	* * *

Fee for Technical Support Services and Maintenance Services. Pursuant to Section 3.6,
NECEL will pay Transmeta a fee for Technical Support Services and Maintenance Service of a
total of * * * for services during the Technology Transfer Services Period, as follows:

	 	 	 
	Installment	 	Due and Payable Date
	 
	 	 
	* * *

	 	* * *
	 
	 	 
	* * *

	 	* * *
	 
	 	 
	* * *

	 	* * *
	 
	 	 
	* * *

	 	* * *

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	25
	 	March 25, 2004

 

 

EXHIBIT E

Royalties

     Royalty Schedules

     (a) Royalty on NECEL-Branded Products. For any Licensed LongRun2 Product sold or
Otherwise Disposed Of (defined below) by NECEL or an NECEL Subsidiary as finished goods in
assembled form under an NECEL or NECEL Subsidiary brand, NECEL will pay royalties calculated in
accordance with the royalty schedule set forth below:

	 	 	 
	Cumulative NECEL-Branded Products	 	Royalty [* * *]1
	* * *
	 	* * *
	* * *
	 	* * *
	* * *
	 	* * *
	* * *
	 	* * *
	* * *
	 	* * *
	* * *
	 	* * *
	* * *
	 	* * *

     Notes to Royalty Schedule

     1. Royalties will be calculated in accordance with the following:

     [* * *]

     (b) Royalty on NECEL Foundry/COT or other products. For any Licensed LongRun2 Product
sold by NECEL on a Foundry/COT basis (except the Licensed LongRun2 Products which apply to Royalty
Schedule (a) above), or sold or provided by NECEL to a third party on any basis that does not
otherwise correspond to any of the transaction descriptions set forth in subsection(a) above, NECEL
will pay royalties calculated in accordance with the royalty schedule set forth below.

	 	 	 	 	 
	 	 	 	 	Royalty for 12” or
	Cumulative wafers2	 	Royalty for 8” wafers	 	other size wafers
	* * *
	 	* * *
	 	* * *
	* * *
	 	* * *
	 	* * *
	* * *
	 	* * *
	 	* * *
	* * *
	 	* * *
	 	* * *
	* * *
	 	* * *
	 	* * *
	* * *
	 	* * *
	 	* * *

     Note to Royalty Schedule

	 	2.  	[* * *].
	 
	 	3.  	[* * *].

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

					
	 	 	 	 	 
	NECEL / Transmeta Agreement
	 	26
	 	March 25, 2004exv10w18

 

EXHIBIT 10.18

CONFIDENTIAL TREATMENT REQUESTED

Execution Copy

LONGRUN2 TECHNOLOGY LICENSE AGREEMENT

     This LongRun2 Technology License Agreement (“Agreement”) is made and entered into as of
November 29, 2004h (“Effective Date”), by and between Transmeta Corporation, a Delaware corporation
having its principal place of business at 3990 Freedom Circle, Santa Clara, CA 95054, U.S.A.
(“Transmeta”) and Fujitsu Limited, a Japanese corporation having its principal place of business at
50 Fuchigami, Akiruno, Tokyo 197-0833, Japan (“Fujitsu”).

RECITALS

     A. Transmeta develops and sells software-based microprocessors and related hardware and
software technologies.

     B. Transmeta has developed certain proprietary power management and related technologies,
including Transmeta Technology (as defined below).

     C. Fujitsu desires that Transmeta grant Fujitsu a license under Transmeta’s Intellectual
Property Rights (as defined below) in and to the Transmeta Technology, and Transmeta is willing to
grant Fujitsu such a license, subject to and in accordance with the terms and conditions of this
Agreement, for Fujitsu to use the Transmeta Technology with its * * * CMOS technology generations,
and any intermediate (i.e., internode) generations thereof.

     D. Fujitsu desires that Transmeta provide Fujitsu with certain technology transfer and
technical support services related to the Transmeta Technology and Transmeta is willing to provide
Fujitsu with such services, subject to and in accordance with the terms of this Agreement.

     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 hereto
agree as follows:

	1.  	DEFINITIONS
	 
	1.1  	“Foundry Service” means the service of manufacturing semiconductor wafers on behalf of third
parties where the manufacturer provides the third parties with process information (such as
design rules) and/or cell libraries, function block or macro (such as, by way of example, but
not limitation, a digital or analog block or cell library) to be incorporated into the wafers.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 1 
	 	November, 2004

 

 

	1.2  	“Fujitsu Improvements” means any improvements, modifications, enhancements, extensions to,
or derivative works based upon the Transmeta Technology, in whole or in part, developed by or
for Fujitsu or a Fujitsu Subsidiary.
	 
	1.3  	“Fujitsu-specific Licensed LongRun2 Products” means any Licensed LongRun2 Products (as
defined Section 2.1(a)) that are based on, manufactured utilizing, embody, implement,
incorporate or practice the Transmeta Technology described in Section 13 of Exhibit B,
but no other portion of the Transmeta Technology.
	 
	1.4  	“Have Manufactured” means for Fujitsu (or a sublicensed Fujitsu Subsidiary (as defined
below)) to contract with a third party or parties to perform manufacturing functions for and
on behalf of Fujitsu (or the sublicensed Fujitsu Subsidiary).
	 
	1.5  	“Intellectual Property Rights” means patent rights (including patent applications and
disclosures), mask work rights, copyrights, rights in trade secrets and know-how, and any
other intellectual property rights recognized in any country or jurisdiction in the world,
exclusive of rights in and to trademarks, trade names, logos, service marks, other
designations of source and design patents and design patent applications.
	 
	1.6  	“LongRun2 Products” means CMOS integrated circuit semiconductor devices that are based on,
manufactured utilizing, embody, implement, incorporate or practice the Transmeta Technology,
in whole or in part.
	 
	1.7  	“Subsidiary” means any entity that a party controls. For purpose of this definition,
“controls” means having: (i) ownership of more than fifty percent (50%) of the equity
securities entitled to vote for the election of directors (or, in the case of an entity that
is not a corporation, for the election of the corresponding managing authority); or (ii) the
right to vote for or appoint a majority of the board of directors or other governing body of
such entity. Any entity will be deemed to be a “Subsidiary” only so long as such control
exists. Subsidiary(ies) of Fujitsu will be referred to as “Fujitsu Subsidiary(ies)” and those
of Transmeta will be referred to as “Transmeta Subsidiary(ies)”.
	 
	1.8  	“Patent” means any patent or patent application, worldwide, owned or controlled by a party at
any time during the term of this Agreement, except for design patents and design patent
applications.
	 
	1.9  	“Transmeta Technology” means certain proprietary power management and related technologies,
including technologies referenced as “LongRun2”, which are a collection of technical
approaches which can be used to improve the characteristics of CMOS chips with respect to
total chip power, active power, leakage power, performance, die size, yield and/or production
costs and are a superset of, and therefore include, technologies referenced as “LongRun”, all
as described in Exhibit A and Exhibit B attached hereto, and including any
improvements, modifications, enhancements, extensions thereto or derivative works based
thereon, in whole or in part, developed by or for Transmeta or Transmeta Subsidiaries, that
Transmeta provides to Fujitsu pursuant to the terms of this Agreement.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 2 
	 	November, 2004

 

 

	1.10  	“Transmeta Technology Deliverables” means those items of Transmeta Technology specified in
Exhibit B, attached hereto, that Transmeta will deliver to Fujitsu in accordance with
the terms of this Agreement.
	 
	1.11  	“Transmeta Documents” means the documents included in the Transmeta Technology Deliverables
specified in Exhibit B, attached hereto, that Transmeta will deliver to Fujitsu in
accordance with the terms of this Agreement.
	 
	2.  	LICENSES, LICENSE ROYALTIES AND NON-ASSERTION RIGHTS
	 
	2.1  	License Grant. Subject to Fujitsu’s compliance with all of the terms and conditions
of this Agreement (including, without limitation, timely payment of all applicable fees,
royalties and any other amounts payable hereunder), Transmeta hereby grants to Fujitsu a
worldwide, nonexclusive, nontransferable (except as specified in Section 12.1),
non-sublicensable (except as specified in Section 2.2) and royalty-bearing license under all
of Transmeta’s Intellectual Property Rights in and to Transmeta Technology to:

	 	(a)  	use (and have used), reproduce (and have reproduced), modify
(and have modified), extend (and have extended), improve (and have improved)
and create Fujitsu Improvements (and have created Fujitsu Improvements) based
upon the Transmeta Technology for Fujitsu and third party customers of Fujitsu
solely for the purpose of designing (and having designed) and developing (and
having developed) LongRun2 Products for * * * CMOS semiconductor technology
generations (and any intermediate (i.e., internode) generations thereof)
(“Licensed LongRun2 Products”), which include, without limitation,
Fujitsu-specific Licensed LongRun2 Products;
	 
	 	(b)  	manufacture (and Have Manufactured), use (and have used), offer
for sale, sell, import or Otherwise Dispose Of (as defined in Exhibit
E) Licensed LongRun2 Products; and
	 
	 	(c)  	use (and have used), reproduce (and have reproduced), modify
(and have modified), translate (and have translated), summarize (and have
summarized), and distribute (and have distributed) the Transmeta Documents,
provided that Fujitsu will comply with the confidentiality obligations
hereunder to the extent Transmeta Confidential Information (as defined below)
is included.

	   	It is acknowledged and agreed by the parties that the rights and license granted under this
Section expressly include the right and license for Fujitsu to utilize any Transmeta
Technology to provide Foundry Services to any third party customers of Fujitsu in order for
such third party customers to design (and have designed) and develop (and have developed)
Licensed LongRun2 Products for exclusive manufacture by Fujitsu solely for such third party
customers, and to use (and have

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 3 
	 	November, 2004

 

 

	   	used), offer for sale, sell, import or Otherwise Dispose Of
(as defined in Exhibit E) such Licensed LongRun2 Products.
	 
	2.2  	Fujitsu Subsidiaries. Fujitsu has the right to sublicense any (or all) of the
license rights granted in Section 2.1 to any Fujitsu Subsidiary. Fujitsu, however, hereby
guarantees the compliance by each and every
such Fujitsu Subsidiary with the terms and
conditions of this Agreement, and Fujitsu and
such Fujitsu Subsidiaries shall be jointly
and severally liable for any breach thereof
by any such Fujitsu Subsidiary.
	 
	2.3  	License Restrictions.

	 	(a)  	Restrictions on Have Manufactured Rights. Fujitsu
acknowledges that in connection with any exercise of its “Have Manufactured”
rights under Section 2.1 Fujitsu may enter into a written agreement with its
contract manufacturer(s) for the manufacture of Licensed LongRun2 Products (a
“Contract Manufacturing Agreement”). Each Contract Manufacturing Agreement
that Fujitsu enters into shall contain provisions that protect Transmeta’s
Intellectual Property Rights in and to the Transmeta Technology, Transmeta
Technology Deliverables and Transmeta’s Confidential Information to at least
the same extent as the terms and conditions of this Agreement. If, in
connection with any exercise of its “Have Manufactured” rights under Section
2.1, any contract manufacturer breaches such provisions with respect to
Transmeta’s Intellectual Property Rights or otherwise infringes,
misappropriates or violates Transmeta’s Intellectual Property Rights in and to
the Transmeta Technology, Transmeta Technology Deliverables or Transmeta
Confidential Information, then Fujitsu will take appropriate action therefor
and be liable for any and all losses or damages of any kind suffered or
incurred by Transmeta arising out of or relating to any such infringement,
misappropriation or violation.
	 
	 	(b)  	Specific Restrictions. Without limiting any
restrictions or other limitations specified in Section 2.3(a) above, Fujitsu
further acknowledges that, in no event shall Fujitsu or a sublicensed Fujitsu
Subsidiary authorize or permit a Fujitsu contract manufacturer to manufacture,
use, offer to sale, sell, import or Otherwise Dispose Of (as defined in
Exhibit E) a Licensed LongRun2 Product for or on behalf of any party
other than Fujitsu or a sublicensed Fujitsu Subsidiary, as applicable.
	 
	 	(c)  	Limited Rights. Fujitsu’s rights in the Transmeta
Technology, Transmeta Technology Deliverables and Transmeta’s Confidential
Information will be limited to those expressly granted in this Agreement.
Transmeta reserves all rights in and to the Transmeta Technology, Transmeta
Technology Deliverables and Transmeta’s Confidential Information not expressly
granted to Fujitsu hereunder. For the avoidance of doubt, Fujitsu acknowledges
and agrees that it

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 4 
	 	November, 2004

 

 

	 	   	may not use (or have used), reproduce (or have reproduced),
modify (or have modified), extend (or have extended), improve (or have
improved), create Fujitsu Improvements based upon (or have created Fujitsu
Improvements based upon) the Transmeta Technology, Transmeta Technology
Deliverables, or Transmeta Confidential Information, or manufacture (or Have
Manufactured), offer for sale, sell, import or Otherwise Dispose Of (as defined
in Exhibit E) the Licensed LongRun2 Product, except as expressly
authorized in this Agreement.

	2.4  	Royalties. For each Licensed LongRun2 Product sold or Otherwise Disposed Of (as
defined in Exhibit E) by or for Fujitsu or sublicensed Fujitsu Subsidiaries, Fujitsu
will pay Transmeta the non-refundable royalties calculated in accordance with the applicable
royalty schedule set forth in Exhibit E. Royalties shall accrue upon the shipment of
each Licensed LongRun2 Product. Within * * * after: (i) the end of each calendar quarter
during the term of this Agreement in which the royalty accrues and (ii) the termination of
this Agreement, Fujitsu shall submit to Transmeta the payment of royalties due as shown in the
Royalty Report (as defined below). No royalty shall accrue for any Licensed LongRun2 Products
shipped as a replacement for any defective Licensed LongRun2 Products or shipped by Fujitsu
and/or sublicensed Fujitsu Subsidiaries for sample shipments without any charge to their
customers. Royalties already paid for any Licensed LongRun2 Products shipped but returned
will be credited against future royalties to be paid by Fujitsu to Transmeta.
	 
	2.5  	Provision of Fujitsu Improvements. Fujitsu is under no obligation to provide
Transmeta with Fujitsu Improvements; however, if Fujitsu provides Transmeta with any Fujitsu
Improvements, such Fujitsu Improvements are (i) subject to Fujitsu’s warranty disclaimer as
set forth Section 9.4; (ii) provided “AS IS”, and (iii) may include certain highly valuable
trades secrets or other confidential information of Fujitsu and, as such, are subject to the
provisions of Section 7 hereof.
	 
	2.6  	Non-Assertion by Fujitsu of Patent Rights in Fujitsu Improvements. Fujitsu, on
behalf of itself and all sublicensed Fujitsu Subsidiaries, hereby covenants not to sue for
infringement of or otherwise assert rights in any of its Patents in or to Fujitsu Improvements
against:

	 	(a)  	Transmeta and Transmeta Subsidiaries on the grounds that they
are making, using, selling, offering for sale, importing or Otherwise Disposing
Of (as defined in Exhibit E) LongRun2 Products, but only with respect
to those features, techniques or functionalities of a LongRun2 Product that
implement, incorporate, embody or are based on a Fujitsu Improvement;
	 
	 	(b)  	distributors and customers (including but not limited to
end-user customers) of Transmeta and Transmeta Subsidiaries on the grounds that
such parties are making, using, selling, offering for sale, importing, or
Otherwise Disposing Of (as defined in Exhibit E)

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 5 
	 	November, 2004

 

 

	 	   	LongRun2 Products, but
only with respect to those features, techniques or functionalities of a
LongRun2 Product that implement, incorporate, embody or are based on a Fujitsu
Improvement; and
	 
	 	(c)  	contract semiconductor device manufacturers of Transmeta and
Transmeta Subsidiaries on the grounds that such manufacturers are manufacturing
LongRun2 Products solely for Transmeta or Transmeta Subsidiaries, but only with
respect to those features, techniques or functionalities of a LongRun2 Product
that implement, incorporate, embody or are based on a Fujitsu Improvement.

	2.7  	Non-Assertion of Patent Rights in Fujitsu Improvements. Transmeta, on behalf
of itself and all Transmeta Subsidiaries, hereby covenants, not to sue for infringement of or
otherwise assert rights in any of its Patents in or to Transmeta Technology against:

	 	(a)  	Fujitsu and Fujitsu Subsidiaries on the grounds that they are
making, using, selling, offering for sale, importing or Otherwise Disposing Of
(as defined in Exhibit E) Licensed LongRun2 Products, which implement,
incorporate, embody or are based on a Fujitsu Improvement;
	 
	 	(b)  	distributors and customers (including but not limited to
end-user customers) of Fujitsu and Fujitsu Subsidiaries on the grounds that
such parties are making, using, selling, offering for sale, importing, or
Otherwise Disposing Of (as defined in Exhibit E) Licensed LongRun2 Products,
but only with respect to those features, techniques or functionalities of a
Fujitsu Improvement; and
	 
	 	(c)  	contract semiconductor device manufacturers of Fujitsu and
Fujitsu Subsidiaries on the grounds that such manufacturers are manufacturing
Licensed LongRun2 Products solely for Fujitsu or Fujitsu Subsidiaries, but only
with respect to those features, techniques or functionalities of a Fujitsu
Improvement.

	2.8  	Additional Patent Licensing. At Transmeta’s request, at any time during the
term of this Agreement, Fujitsu will negotiate with Transmeta in good faith the granting of a
license under any Fujitsu Patent related to Transmeta’s LongRun2 Products. The terms of such
license, including any applicable royalty, will be on a reasonable and non-discriminatory
basis, and if agreed upon, will be documented in a separate agreement.

3. TECHNOLOGY TRANSFER SERVICES AND FEES THEREFOR

	3.1  	Transmeta Obligations: Subject to Fujitsu’s payment of the technology transfer
services fee in accordance with Section 3.5 below, during * * * period following the Effective
Date (the “Technology Transfer Services Period”), Transmeta will deliver to Fujitsu: (i) the
Transmeta Technology Deliverables as set forth in Exhibit B; and

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 6 
	 	November, 2004

 

 

	   	(ii) certain
technology training as set forth in Exhibit B in accordance with the terms specified
therein (“Technology Transfer Training”) as soon as can be mutually agreed. Transmeta will
make delivery of the items identified in * * * of Exhibit B within * * * after the
execution of this Agreement. Items identified in * * * of Exhibit B will be delivered as soon
as * * *. The parties acknowledge that items identified in * * * of Exhibit B have been
delivered by Transmeta to Fujitsu in accordance with that certain Mutual Non-Disclosure
Agreement * * *. Unless otherwise agreed in writing between the parties, Transmeta will have
no obligation to provide additional deliverables or training of any kind after the expiration
of the Technology Transfer Services Period.
	 
	3.2  	Technical Support Services and Maintenance Services. At Fujitsu’s request, and
subject to Transmeta’s mutual agreement, and subject to Fujitsu’s payment of the applicable
fees in accordance with Section 3.6, during the term of this Agreement, Transmeta will provide
or make available to Fujitsu the technical support services, as specified in Exhibit C
(“Technical Support Services”), and the maintenance services as specified in Exhibit C
(“Maintenance Services”). Notwithstanding the foregoing, Fujitsu may cancel Technical Support
Services and Maintenance Services, at any time, upon at least * * * prior written notice.
	 
	3.3  	Provision of Transmeta Technology “AS IS”. The Transmeta Technology, Transmeta
Technology Deliverables, Technology Transfer Training, Technical Support Services and
Maintenance Services are provided “AS IS”.
	 
	3.4  	Acknowledgement of Confidential Information. Fujitsu acknowledges that the Transmeta
Technology, Transmeta Technology Deliverables, Technology Transfer Training, Technical Support
Services and Maintenance Services contain and will disclose to Fujitsu certain highly valuable
trade secrets of Transmeta.
	 
	3.5  	Technology Transfer Services Fee. In consideration of Transmeta’s delivery of the
Transmeta Technology Deliverables and Technology Transfer Training pursuant to Section 3.1
during the Technology Transfer Services Period, Fujitsu will pay Transmeta a one-time
technology transfer fee of * * * in accordance with the payment schedule set forth in
Exhibit D. The technology transfer fee payable by Fujitsu hereunder is non-refundable
and non-recoupable, and is not creditable against the royalties which may become payable by
Fujitsu under Section 2.4. This payment is in no way dependent upon Fujitsu successfully
manufacturing a Licensed LongRun2 Product or “bringing up” a Licensed LongRun2 Product
production process.
	 
	3.6  	Technical Support Services and Maintenance Services Fee. If agreed between the
parties in accordance with Section 3.2, in consideration of Transmeta providing Technical
Support Services and Maintenance Services pursuant to Section 3.2, Fujitsu will pay Transmeta
a fee in accordance with the payment schedule set forth in Exhibit C. The fees for
Technical Support Services and Maintenance Services payable by Fujitsu hereunder are
non-refundable and non-recoupable, and are not creditable against the royalties which may
become payable by Fujitsu under Section 2.4. If Fujitsu cancels Technical Support Services
and Maintenance Services in accordance

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 7 
	 	November, 2004

 

 

	   	with the provisions of Section 3.2, the fees payable by
Fujitsu will be pro-rated based on the period for which Transmeta has performed (and continues
to perform) such Technical Support Services or Maintenance Service until such scheduled
cancellation date.
	 
	4.  	PAYMENT, INTEREST AND TAXES
	 
	4.1  	Payment Method. All payments by Fujitsu shall be made in U.S. dollars by wire
transfer to the bank account to be separately designated in writing by Transmeta.
	 
	4.2  	Interest and Other Payment Terms. Any payments made after the applicable due date
will incur interest at the rate of * * *. All amounts specified in this Agreement will be
paid in U.S. dollars and will not be subject to setoff against any amounts of claims that
Transmeta owes to Fujitsu under this Agreement or under any other agreement.
	 
	4.3  	Taxes. Fujitsu will pay any and all national, state, prefecture, city, local and
other excise, sales, use, value-added and other taxes and duties imposed by any and all
applicable laws and regulations in Japan in respect of the payments made under this Agreement
or otherwise arising out of this Agreement, other than taxes based upon Transmeta’s net
income. If it is required under applicable law, Fujitsu may pay, on Transmeta’s behalf, any
withholding taxes that are required to be paid under applicable law. In this event, Fujitsu
will furnish Transmeta with written documentation of such payments, including but not limited
to receipts, of any and all such taxes paid by Fujitsu.
	 
	5.  	RECORDS AND AUDIT REQUIREMENTS
	 
	5.1  	Records. For * * * after the completion of each calendar quarter, Fujitsu will
maintain complete and accurate books, records and accounts as are reasonably necessary to
verify the royalty payments made by Fujitsu hereunder.
	 
	5.2  	Reports. Within * * * after (i) the end of each calendar quarter during the term of
this Agreement; and (ii) the termination of this Agreement, Fujitsu will furnish to Transmeta
a written report specifying the royalties owed for the relevant period (“Royalty Report”). If
no royalties are due, that fact will be shown on such Royalty Report. The content, form and
format of such Royalty Reports will be as mutually agreed to by the parties, but will include,
at a minimum, the quantity and, only for Licensed LongRun2 Products for which the royalty is
calculated under royalty schedule (a) of Exhibit E, average sales price, of each
royalty-bearing Licensed LongRun2 Product type upon which a royalty fee is due and whether
royalty schedule (a) or (b) of Exhibit E was used to determine the royalty payment
due.
	 
	5.3  	Audit. During the term of this Agreement and for a period of * * * thereafter, upon at least * * * prior written notice to Fujitsu, Transmeta
will have the right, at its own cost and expense, to authorize a certified public accounting
firm as agreed by Fujitsu, with Fujitsu’s prior consent which will not be unreasonably
withheld or delayed, to audit Fujitsu’s books, records, and

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 8 
	 	November, 2004

 

 

	   	accounts, and other relevant
information for the purpose of verifying the accuracy of the amount of royalties reported by
Fujitsu in Royalty Reports pursuant to Section 5.2, provided that such audit shall be
conducted during the normal business hours of Fujitsu and no more frequently than once a year.
If the accounting firm concludes that additional amounts were owed during the audited period,
Fujitsu will pay such additional amounts plus interest calculated in accordance with Section
4.2, within * * * of the date Transmeta delivers the accounting firm’s written report to
Fujitsu. Transmeta will pay the fees and expenses charged by the accounting firm; provided
however, if the audit discloses that the royalties payable by Fujitsu for the audited period
are more than * * * of the amounts actually paid for such period,
then Fujitsu will pay the reasonable fees and expenses charged by the accounting firm.
	 
	6.  	TERM AND TERMINATION
	 
	6.1  	Term. This Agreement will begin on the Effective Date and will remain in force
unless and until terminated in accordance with Section 6.2.
	 
	6.2  	Termination. Either party may terminate this Agreement: (i) if the other party
breaches any material term or condition of this Agreement that is curable and fails to cure
such breach within * * * following receipt of written notice from the non-breaching party;
(ii) immediately upon written notice to the other party if such other party breaches any
material term or condition of this Agreement that is not curable; or (iii) immediately upon
written notice to the other party, upon or after: (a) the filing by such other party of a
petition in bankruptcy or insolvency; (b) any adjudication that such other party is bankrupt
or insolvent; (c) the filing by such other party of any legal action or document seeking
reorganization, readjustment or arrangement of such other party’s business under applicable
law relating to bankruptcy or insolvency; (d) the appointment of a receiver for all or
substantially all of the property of such other
party; (e) the making by such other party of any assignment for the benefit of creditors;
(f) the institution of any proceedings for the liquidation or winding up of such other
party’s business or for the termination of its corporate charter; (g) such other party
becomes insolvent, ceases, or suspends all or substantially all of its business; (h) its
direct competitor acquires, through merger, consolidation, acquisition, or otherwise, an
interest in excess of fifty percent (50%) of the voting securities or assets of such other
party; or (i) if such other party transfers all or substantially al of its business to a
direct competitor of the other party.
	 
	6.3  	Effect of Termination. Upon the termination of this Agreement by either party
pursuant to Section 6.2: (i) except as otherwise expressly provided in this Agreement, all
licenses and rights granted to Fujitsu hereunder will immediately terminate; (ii) Fujitsu
shall promptly return to Transmeta or destroy all of Transmeta’s Confidential Information and
all Transmeta Technology Deliverables in its possession or control and provide Transmeta with
an officer’s written certification, certifying to the return or destruction of all such
Transmeta’s Confidential Information and Transmeta Technology Deliverables, provided that
Fujitsu (and sublicensed Fujitsu Subsidiaries) may retain a reasonable number of copies
thereof necessary for the

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 9 
	 	November, 2004

 

 

	   	provision of maintenance services to its then existing customers to
which Fujitsu and/or Fujitsu Subsidiaries had already sold or Otherwise Disposed Of (as
defined in Exhibit E) the Licensed LongRun2 Products; and (iii) Transmeta shall
promptly return to Fujitsu or destroy all of Fujitsu’s Confidential Information that
Transmeta may have obtained through the course of this Agreement, and provide Fujitsu with an
officer’s written certification, certifying to the return or destruction of all such
Confidential Information.
	 
	6.4  	Survival. Fujitsu’s obligation to pay any accrued unpaid amounts due to Transmeta
will survive termination of this Agreement in case of termination for any reason. The rights
and obligations of the parties under Sections 1, 2.3, 2.6 (except if Fujitsu terminates this
Agreement pursuant to Section 6.2), 2.7 (except if Transmeta terminates this Agreement
pursuant to Section 6.2), 3.3, 3.4, 4, 5, 6.3, 6.4, 6.5, 7, 8, 9, 10, 11 and 12 of this
Agreement also will survive the termination of this Agreement for any reason. The license
rights granted by Transmeta under Sections 2.1 and 2.2 will survive termination of this
Agreement by either party pursuant to Section 6.2 with respect to any and all Licensed
LongRun2 Products sold and invoiced by Fujitsu or a sublicensed Fujitsu Subsidiary prior to
the effective date of termination and, subject to Fujitsu’s payment of the applicable
royalties in accordance with the terms of this Agreement, any Licensed LongRun2 Products
manufactured by Fujitsu or a sublicensed Fujitsu Subsidiary prior to the effective date of
termination.
	 
	6.5  	Confirmation of Fujitsu’s License Rights. Transmeta expressly acknowledges that it
will have no right to terminate this Agreement or any of the license rights granted to Fujitsu
hereunder solely as a result of Transmeta undergoing or being subject to any of the events or
conditions specified in Section 6.2(iii)(a) through 6.2(iii)(i). In addition, the parties
acknowledge that the Transmeta Technology is “intellectual property” as defined in Section
101(56) of the U.S. Bankruptcy Code (the “Code”), that this Agreement is governed by Section
365(n) of the Code, and that Fujitsu will have the right to exercise all rights provided by
Section 365(n) of the Code with respect to the Transmeta Technology. Without limiting the
foregoing, the parties agree that in the event that any bankruptcy proceeding is filed by or
against
Transmeta, and the bankruptcy trustee or debtor-in-possession rejects this Agreement,
Fujitsu will have the right to exercise all rights provided by Section 365(n) of the Code,
including the right to retain its license rights to the Transmeta Technology under this
Agreement and any agreement ancillary to this Agreement, subject to Fujitsu’s ongoing
payment of any royalties payable hereunder.
	 
	7.  	CONFIDENTIALITY
	 
	7.1  	Confidential Information. “Confidential Information” means any business or technical
information that a party hereto desires to protect against unauthorized use or disclosure
that: (i) is disclosed in writing and is identified and/or marked by the disclosing party as
Confidential Information at the time of disclosure; or (ii) is disclosed in any other manner
and, under the circumstances of disclosure or due to the nature of the information, a person
exercising reasonable business judgment would

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 10 
	 	November, 2004

 

 

	   	understand to be confidential or proprietary.
Without limiting the generality of the foregoing, Confidential Information may include, but is
not limited to, any information relating to business processes, operations, product plans,
designs, costs, product prices and names, finances, marketing plans, business opportunities,
personnel, research, development or know-how; and the terms and conditions of this Agreement.
In addition, for the purpose of this Agreement: (i) the Transmeta Technology and Transmeta
Technology Deliverables and information disclosed by Transmeta in connection with providing
Technology Transfer Training pursuant to Section 3.1 and Technical Support Services and
Maintenance Services pursuant to Section 3.2 shall be deemed Transmeta’s Confidential
Information unless and until such information falls into any of the exceptions as provided in
Section 7.3 below; and (ii) any Fujitsu Improvements that Fujitsu provides to Transmeta
pursuant to section 2.5 shall be deemed Fujitsu Confidential Information unless and until such
information falls into any of the exceptions as provided in section 7.3 below.
	 
	7.2  	Use and Disclosure Restrictions. For period of * * * following the date of each
disclosure thereof, neither party will use the other party’s Confidential Information except
for the purposes of exercising its rights and fulfilling its obligations hereunder, and will
not disclose such Confidential Information to any third party except to its employees and
consultants as is reasonably required in connection with the exercise of its rights and the
fulfillment of its obligations under this Agreement (and, in case of any consultants, only
subject to binding use and disclosure restrictions at least as protective as those set forth
herein to be executed in writing by such consultants). In addition, Fujitsu may disclose
Transmeta’s Confidential Information to any (i) Fujitsu Subsidiary to which Fujitsu grants a
sublicense pursuant to Section 2.2 hereof, (ii) to any third-party manufacturer of Fujitsu or
such a sublicensed Fujitsu Subsidiary for the purpose of exercising its rights under Section
2.1(b); and (iii) to any third party customer of Fujitsu or such a sublicensed Fujitsu
Subsidiary for the purpose of exercising its rights under Section 2.1; provided, that prior to
any such disclosure, each such third party customer must execute a written non-disclosure
agreement with Fujitsu that contains use and disclosure restrictions at least as protective as
those set forth herein. Each party will use all reasonable efforts to protect and to maintain
the confidentiality of all of the other party’s Confidential Information in its possession or
control by using the efforts that such party ordinarily uses with respect to its own
proprietary information of similar nature and importance, but in no event less than reasonable
efforts. The foregoing obligations will 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; (ii) on a
confidential basis to its legal or professional financial advisors; (iii) as required under
applicable securities regulations; and (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 investors in or acquirers of such
party or its assets associated with the subject matter of this Agreement.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 11 
	 	November, 2004

 

 

	7.3  	Exclusions. The obligations set forth in Section 7.2 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) the receiving party can document was rightfully
known to the receiving party at the time of disclosure without an obligation of
confidentiality; (iii) the receiving party can document 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.
	 
	8.  	OWNERSHIP
	 
	8.1  	Transmeta Ownership. Fujitsu acknowledges and agrees that, as between Transmeta and
Fujitsu, Transmeta owns all right, title, and interest in and to the Transmeta Technology
Deliverables, Transmeta Technology and Transmeta’s Confidential Information, including all
Intellectual Property Rights therein.
	 
	8.2  	Fujitsu Ownership. Transmeta acknowledges and agrees that, as between Fujitsu and
Transmeta, Fujitsu owns all right, title, and interest in and to the Fujitsu Improvements and
Fujitsu’s Confidential Information, including all Intellectual Property Rights therein.
	 
	8.3  	Proprietary Notices. Each party will not delete or in any manner alter the patent,
copyright, trademark, and other proprietary rights notices of the other party (and its
suppliers, if any) appearing on the documents (including but not limited to the Transmeta
Technology and/or Transmeta Technology Deliverables, Fujitsu Improvements), as provided or
otherwise made available by the other party hereunder. Each party shall reproduce such
notices on all copies it makes of the documents, as permitted hereunder.
	 
	9.  	REPRESENTATIONS AND WARRANTIES
	 
	9.1  	Warranty of Authority. Each party represents and warrants to the other party that it
has the necessary corporate power, right and authority to enter into this Agreement, to carry
out its obligations under this Agreement, and to grant the rights herein granted.
	 
	9.2  	Transmeta Warranty. Transmeta represents and warrants to Fujitsu that (i) to
Transmeta’s best knowledge, neither the Transmeta Technology nor the Transmeta Deliverables
directly infringes or misappropriates Intellectual Property Rights of any third party, (ii)
there is no contract or agreement with any third party which prohibits, restricts or otherwise
limits Transmeta from entering into this Agreement or granting
the right herein granted to Fujitsu. Fujitsu’s sole and exclusive remedy and Transmeta’s
sole and exclusive liability for any breach of the warranty set forth in this Section 9.2
will be as set forth in Section 10.
	 
	9.3  	Warranty Disclaimer of Transmeta. EXCEPT AS EXPRESSLY SET FORTH IN SECTIONS 9.1 AND
9.2, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, TRANSMETA SPECIFICALLY AND EXPRESSLY

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 12 
	 	November, 2004

 

 

	   	DISCLAIMS ANY AND ALL WARRANTIES OR CONDITIONS WITH RESPECT TO THE TRANSMETA TECHNOLOGY,
TRANSMETA TECHNOLOGY DELIVERABLES, TECHNOLOGY TRANSFER TRAINING, TECHNICAL SUPPORT SERVICES
AND MAINTENANCE SERVICES, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, INCLUDING ANY IMPLIED
WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUALITY, OR
NON-INFRINGEMENT, EVEN IF TRANSMETA HAS BEEN MADE AWARE OF ANY PARTICULAR FUJITSU REQUIREMENTS.
	 
	9.4  	Warranty Disclaimer of Fujitsu. EXCEPT AS EXPRESSLY SET FORTH IN SECTION 9.1, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, FUJITSU SPECIFICALLY AND EXPRESSLY DISCLAIMS ANY
AND ALL WARRANTIES OR CONDITIONS REGARDING FUJITSU IMPROVEMENTS, EXPRESS OR IMPLIED, STATUTORY
OR OTHERWISE, INCLUDING ANY IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, QUALITY, OR NON-INFRINGEMENT, EVEN IF FUJITSU HAS BEEN MADE AWARE OF ANY
PARTICULAR TRANSMETA’S REQUIREMENTS.
	 
	10.  	INFRINGEMENT INDEMNITY
	 
	10.1  	Transmeta Obligations. Subject to Sections 10.2, 10.3, and 10.5, Transmeta will, at
its expense: (i) defend any third-party action or proceeding brought against Fujitsu (or a
Fujitsu Subsidiary) to the extent that it is based upon a claim that the Transmeta Technology
and/or Transmeta Technology Deliverables, as provided by Transmeta to Fujitsu under this
Agreement, infringes or misappropriates any Intellectual Property Rights of any third party;
and (ii) settle such claim and pay any costs, damages and reasonable attorneys’ fees
attributable to such claim incurred by Fujitsu and/or Fujitsu Subsidiaries in relation to this
claim or that are payable in a settlement approved in advance and in writing, by Transmeta,
provided, however, that Transmeta shall not enter into any settlement that adversely affects
Fujitsu’s rights, or imposes any obligations upon Fujitsu, without Fujitsu’s prior written
consent.
	 
	10.2  	Fujitsu Obligations. Subject to Sections 10.1 and 10.3, Fujitsu will, at its
expense: (i) defend any third-party action or proceeding brought against Transmeta to the
extent that it is based on a claim arising out of or resulting from Fujitsu’s or any Fujitsu
Subsidiary’s manufacturing, use, offer for sale, sale, licensing, duplication, distribution,
marketing, export and/or import of any Licensed LongRun2 Product, except to the extent based
upon a claim covered by Section 10.1; and (ii) settle such claim and pay any costs, damages
and reasonable attorneys’ fees attributable to such claim incurred by Transmeta in relation to
this claim or that are payable in settlement approved in advance and in writing, by Fujitsu,
provided, however, that Fujitsu shall
not enter into any settlement that adversely affects Transmeta’s rights, or imposes any
obligations upon Transmeta, without Transmeta’s prior written consent.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 13 
	 	November, 2004

 

 

	10.3  	Conditions to Defense Obligations. For the purposes hereof, the “Defending Party”
means the party requested to defend the other party under Section 10.1 or 10.2, as the case
may be, and the “Defended Party” means the party making such a request. The Defending Party
will have no obligations to the Defended Party under this Section 10 unless the Defended
Party: (i) provides the Defending Party with prompt written notice of the claim; (ii)
provides the Defending Party with all reasonable information and assistance, at the Defending
Party’s expense, to defend or settle the claim; and (iii) (subject to the provisos as set
forth in Sections 10.1 (ii) and 10.2 (ii)), grants the Defending Party authority and sole
control of the defense and settlement of the claim. The Defended Party reserves the right to
retain counsel, at the Defended Party’s expense, to participate in the defense and settlement
of any such claim.
	 
	10.4  	Injunctions. If Fujitsu’s use of the Transmeta Technology and/or Transmeta
Technology Deliverables is, or in Transmeta’s opinion is likely to be, enjoined due to the
type of claim specified in Section 10.1 above, then Transmeta will, at its sole option and
expense: (i) procure for Fujitsu the right to continue using the Transmeta Technology and/or
Transmeta Technology Deliverables under the terms of this Agreement; and/or (ii) replace or
modify the Transmeta Technology and/or Transmeta Technology Deliverables to make it
non-infringing but substantially equivalent in function; or (iii) if options (i) and (ii)
above cannot be accomplished despite Transmeta’s best efforts, then Transmeta and Fujitsu will
work together to determine an alternative solution.
	 
	10.5  	Exclusions. Notwithstanding the terms of Section 10.1, Transmeta will have no
liability for any infringement or misappropriation claim of any kind to the extent it results
from: (i) modifications to the Transmeta Technology or Transmeta Technology Deliverables not
made by Transmeta or a party authorized in writing by Transmeta, if a claim would not have
occurred but for such modifications; (ii) the combination, operation or use of the Transmeta
Technology or Transmeta Technology Deliverables with any data, software, products or devices
not provided by Transmeta or in connection with processes not provided by Transmeta, if a
claim would not have occurred but for such combination, operation or use; (iii) Fujitsu’s
failure to use updated or modified versions of the Transmeta Technology or Transmeta
Technology Deliverables provided by Transmeta to avoid a claim; or (iv) use of the Transmeta
Technology or Transmeta Technology Deliverables by or on behalf of Fujitsu or any Fujitsu
Subsidiary other than in accordance with this Agreement.
	 
	10.6  	Sole Remedy of Fujitsu. AS BETWEEN TRANSMETA AND FUJITSU, THE PROVISIONS OF THIS
SECTION 10 SET FORTH TRANSMETA’S SOLE AND EXCLUSIVE OBLIGATIONS, AND FUJITSU’S SOLE AND
EXCLUSIVE REMEDIES, WITH RESPECT TO ANY THIRD-PARTY INTELLECTUAL PROPERTY RIGHTS INFRINGEMENT
OR MISAPPROPRIATION CLAIMS OF ANY KIND RELATED TO THE TRANSMETA TECHNOLOGY, TRANSMETA
TECHNOLOGY DELIVERABLES, LONGRUN2 PRODUCTS, AND ANY TECHNOLOGY TRANSFER TRAINING, TECHNICAL
SUPPORT SERVICES

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 14 
	 	November, 2004

 

 

	   	AND MAINTENANCE SERVICES PROVIDED BY OR FOR TRANSMETA UNDER THIS AGREEMENT.
	 
	10.7  	Sole Remedy of Transmeta. AS BETWEEN TRANSMETA AND FUJITSU, THE PROVISIONS OF THIS
SECTION 10 SET FORTH FUJITSU’S SOLE AND EXCLUSIVE OBLIGATIONS, AND TRANSMETA’S SOLE AND
EXCLUSIVE REMEDIES, WITH RESPECT TO ANY THIRD-PARTY INTELLECTUAL PROPERTY RIGHTS INFRINGEMENT
OR MISAPPROPRIATION CLAIMS OF ANY KIND RELATED TO LICENSED LONGRUN2 PRODUCTS.
	 
	11.  	LIMITATION OF LIABILITY
	 
	11.1  	Exclusion of Damages. NEITHER PARTY WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL,
PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF USE, DATA, BUSINESS, PROFITS,
OR GOODWILL) IN CONNECTION WITH, ARISING OUT OF, OR RELATING TO THIS AGREEMENT OR THE USE OF
THE TRANSMETA TECHNOLOGY, TRANSMETA TECHNOLOGY DELIVERABLES OR FROM TECHNOLOGY TRANSFER
TRAINING, TECHNICAL SUPPORT SERVICES OR MAINTENANCE SERVICES PERFORMED BY TRANSMETA UNDER THIS
AGREEMENT, WHETHER SUCH LIABILITY ARISES FROM ANY CLAIM BASED UPON CONTRACT, WARRANTY, TORT
(INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE, AND WHETHER OR NOT A PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. The foregoing limitation will not apply to or
restrict in any manner: (a) either party’s liability arising from a breach of Section 7; (b)
either party’s liability arising out of any infringement, misappropriation or violation of the
other party’s Intellectual Property Rights; or (c) Fujitsu’s liability arising from a breach
of Section 2.3.
	 
	11.2  	Total Liability. EACH PARTY’S TOTAL LIABILITY TO THE OTHER PARTY IN CONNECTION WITH,
ARISING OUT OF, OR RELATING TO THIS AGREEMENT, FROM ALL CAUSES OF ACTION AND THEORIES OF
LIABILITY, WILL BE LIMITED TO AND WILL NOT EXCEED * * *. The foregoing limitation will not
apply to or restrict in any manner: (a) either party’s liability arising from any willful or
intentional breach of Sections 7 or 9.2(ii); (b) either party’s liability arising out of any
willful or intentional infringement, misappropriation or violation of the other party’s
Intellectual Property Rights; or (c) Fujitsu’s liability arising from any willful or
intentional breach of Section 2.3.
	 
	11.3  	Acknowledgment. Each party acknowledges that the other party has entered into this
Agreement in reliance on the above limitations of liability, and that the same constitute a
basis of the bargain between the parties. The parties have agreed that the limitations
specified above will survive any expiration or termination of this

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 15 
	 	November, 2004

 

 

	   	Agreement and will apply
even if any limited remedy specified in this Agreement is found to have failed of its
essential purpose.
	 
	12.  	GENERAL PROVISIONS
	 
	12.1  	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 delayed or withheld; provided that any such assignee or transferee shall
agree in writing to be bound by the terms and conditions of this Agreement. Any attempt to
assign or transfer this Agreement, without such consent, will be null and void and without
effect. Notwithstanding the foregoing, either party may assign or transfer this Agreement,
without the other party’s consent, to a third party that succeeds to all or substantially
all of its assets or related business (whether by sale, merger, operation of law or
otherwise), and Transmeta may so assign this Agreement to an assignee or transferee of, or
successor in interest to, Transmeta’s rights to license the Intellectual Property Rights in
and to the Transmeta Technology (any such third-party assignee, transferee or successor in
interest is referred to as a “Transmeta Acquirer”); provided that any such Transmeta
Acquirer agrees in writing to be bound by the terms and conditions of this Agreement.
Without limiting the generality of the foregoing, Transmeta expressly acknowledges, agrees
and confirms that, the license rights granted to Fujitsu under Section 2.1 will remain in
full force and effect, subject to the terms and conditions of this Agreement,
notwithstanding any assignment or transfer by Transmeta of this Agreement or any of
Transmeta’s assets or Transmeta’s right to license the Intellectual Property Rights in and
to the Transmeta Technology to a Transmeta Acquirer. Transmeta shall notify Fujitsu in
writing of the name of the Transmeta Acquirer as soon as it is reasonably possible for
Transmeta to do so. Subject to the foregoing, 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. Fujitsu agrees, represents and warrants on behalf of itself
and all sublicensed Fujitsu Subsidiaries that it will not transfer or assign any Patents in
or to Fujitsu Improvements, except under terms and conditions that bind the transferee or
assignee to the terms of Section 2.6.
	 
	12.2  	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.
	 
	12.3  	Equitable Relief. Each party acknowledges and agrees that any breach of this
Agreement with respect to the other party’s Intellectual Property Rights or Confidential
Information may cause such other party to incur irreparable harm and significant injury that
would be difficult to ascertain and would not be compensable by damages alone. Accordingly,
each party acknowledges and agrees that, in addition to any and all remedies that the
non-breaching party may have at law or otherwise

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 16 
	 	November, 2004

 

 

	   	with respect to such a breach, the
non-breaching party will have the right to obtain specific performance, injunction or other
appropriate equitable relief.
	 
	12.4  	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.

	 	 	 	 	 
	 

	 	Transmeta:
	 	Fujitsu:
	

	 	David R. Ditzel
	 	Katsuhisa Kubota
	

	 	* * *
	 	* * *
	 
	 	 	 	 
	

	 	With a copy to:
	 	With a copy to:
	

	 	John O’Hara Horsley	 	 
	

	 	* * *	 	 

	12.5  	Compliance with Law; Export Controls. Each party will comply with all laws and
regulations applicable to such party’s performance of this Agreement. Without limiting the
generality of the foregoing, each party will comply fully with all relevant export laws and
regulations of the United States and Japan 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, but not limited to, nuclear,
chemical, or biological weapons proliferation.

	12.6  	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.

	12.7  	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.

	12.8  	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.

	12.9  	Force Majeure. Neither party will be liable to the other party for any delay or
failure in its performance of this Agreement to the extent that such delay or failure is due
to causes beyond it’s reasonable control, including, but not limited to, acts of God, fires,
earthquake, explosions, labor disputes, war, terrorism, riots, inability to obtain energy

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 17 
	 	November, 2004

 

 

	   	or supplies, provided, that the non-performing party promptly furnishes notice to the other party
and resumes performance as soon as practicable.

	12.10  	Governing Law. This Agreement will be governed by and construed in accordance with
the laws of the State of California. The parties expressly disclaim the application of the
U.N. Convention on Contracts for the International Sale of Goods.

	12.11  	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.

	12.12  	Publicity. Except as required by applicable law, neither party will individually
make or issue any press release or public statement related to this Agreement or any of the
rights or obligations undertaken by either party hereunder unless agreed otherwise in
writing by both parties prior to the issuance of any such press release or public statement,
provided that if a party is required by applicable law to make or issue any press release or
statement, such party shall immediately notify the other party and both parties shall
discuss in good faith the contents and timing thereof.

	12.13  	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.

	12.14  	Negotiations. The parties will attempt to resolve all disputes, claims, or
controversies arising under or related to this Agreement or its subject matter or any right or
obligation created by this Agreement (“Dispute”) through good faith negotiations conducted by
the representatives of the parties. The party asserting the Dispute will give prompt notice
to the other party describing the Dispute in reasonable detail (“Dispute Notice”).

	12.15  	Arbitration. If the parties are unable to resolve a Dispute through good faith
negotiations conducted in accordance with the provisions of Section 12.14 above, then, the
Dispute will be resolved by binding arbitration conducted (i) in Santa Clara County,
California by the American Arbitration Association (“AAA”) in accordance with its Commercial
Arbitration Rules then in effect if Transmeta is the defendant, and (ii) in Tokyo, Japan by
the Japan Commercial Arbitration Association in accordance with its Commercial Arbitration
Rules then in effect if Fujitsu is the defendant. The arbitration will be conducted in the
English language. The number of arbitrators shall be three (3) and they shall be appointed in
accordance with the applicable rules. The award rendered by the arbitrators will be final,
binding and non-appealable. Judgment upon such award may be entered in any court of competent
jurisdiction. All costs incurred in conducting the arbitration (other than fees of counsel)
will be shared equally by the parties.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 18 
	 	November, 2004

 

 

	12.16  	Reservation of Rights. Notwithstanding the foregoing provision of Section 12.15,
each party reserves the right to seek injunctive or other equitable relief in a court of
competent jurisdiction with respect to any Dispute related to the actual or threatened
infringement, misappropriation or violation of a party’s Intellectual Property Rights or
breach of Section 2 hereof.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
duly-authorized representatives as of the Effective Date.

	 	 	 	 	 	 	 
	TRANSMETA CORPORATION:	 	FUJITSU LIMITED:
	By:

	 	/s/
	 	By:
	 	/s/
	

	 	 
	 	 	 	 
	Name:

	 	Matthew R. Perry
	 	Name:
	 	Toshihiko Ono
	

	 	 
	 	 	 	 
	Title:

	 	President and CEO
	 	Title:
	 	Corporate Executive Vice President
President, Electronic Devices Business Group
	

	 	 	 	 	 	 
	Date:

	 	November 29, 2004
	 	Date:
	 	November 24, 2004
	

	 	 
	 	 	 	 

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 19 
	 	November, 2004

 

 

EXHIBIT A

Transmeta Technology

Transmeta’s LongRun and LongRun2 technologies are a collection of technical approaches that can be
used to improve the characteristics of CMOS chips with respect to total chip power, active power,
leakage power, performance, die size, yield and production costs.

Certain portions of the LongRun technology were first incorporated in Transmeta’s Crusoe processor,
introduced in January 2000, and relate primarily to mechanisms designed to provide the ability to
dynamically change the voltage and MHz of a chip. * * * *

[* * *]

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 20 
	 	November, 2004

 

 

EXHIBIT B

Transmeta Technology Deliverables

The following documents and intellectual property will be delivered substantially in the form
described below, although the exact titles and contents may change. The specific titles and
bulleted descriptions are meant to be indicative of the content of each document.

1. Transmeta LongRun Power Management Overview

     [* * *]

2. Transmeta LongRun Code Morphing Software Examples

	 	•  	Examples and documentation of * * *

3. Transmeta LongRun Product Engineering Documentation

     [* * *]

4. Transmeta LongRun Circuit Design Guide

     [* * *]

5. Transmeta LongRun2 Power Management Overview

     [* * * ]

6. Transmeta LongRun2 * * * Design Guide

     [* * *]

7. Transmeta LongRun2 Circuit Design Guide

     [* * *]

8. Transmeta LongRun2 * * * methodology

     [* * *]

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 21 
	 	November, 2004

 

 

9. Transmeta LongRun2 Transistor Optimization Guidelines

     [* * *]

10. Transmeta * * * Design Guide

     [* * *]

11. Transmeta’s Presentation Materials

	 	•  	Instructional text, PowerPoint slides and other presentation materials used in
connection with the training classes.
	 
	 	•  	Transmeta’s disclosure of Proprietary Information pursuant to that certain Mutual
Non-Disclosure Agreement between Transmeta and Fujitsu, dated * * *.

12. Transmeta Technology Training

	   	Transmeta will hold training classes for Fujitsu as soon as can be mutually agreed between the
parties, but in no case later than * * * after then Effective Date of this Agreement. Training
classes will cover each of the topic areas listed above. Training classes will take no more
than * * *.

13. Additional LongRun2 IP Optimized * * * 

     Transmeta will provide the following additional IP blocks * * *:

     [* * *]

These IP blocks will be delivered with the following documentation, to the extent reasonable and
appropriate:

     [* * *]

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 22 
	 	November, 2004

 

 

EXHIBIT C

Maintenance Services and Fees, Technical Support Services and Fees

This exhibit describes the Maintenance Services and Technical Support Services that Transmeta will
provide to Fujitsu pursuant to Section 3.2.

Maintenance Services. Maintenance services to:

(a) evaluate, modify or correct any errors reported by Fujitsu to Transmeta, and

(b) correct or update documentation and/or tangible material, provide bug fixes, or otherwise
maintain the Transmeta Technology, not to exceed * * *.

Maintenance Services Fee. The fee for Maintenance Services shall be * * * (which may
be changed by mutual agreement between the parties from time to time). Such fee will be due and
payable no later than * * *. Fujitsu may request an increase level of Maintenance Services
should this not provide sufficient, at an additional rate to be agreed to by the parties.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 23 
	 	November, 2004

 

 

Technical Support Services. Pursuant to Section 3.2, Fujitsu may request technical
support services from Transmeta beyond basic Maintenance Services to assist Fujitsu with their
implementation of Transmeta Technology. Such services and fees will be mutually agreed to by
the parties, and may be modified in writing on a quarterly basis.

Below is a description of certain of the types of projects that Transmeta may perform for
Fujitsu as part Technical Support Services, at Fujitsu’s request. The engineering personnel
requirements indicated under “Project Description”, the
hours indicated under “Estimated * * *”
for each such project, and the hourly fee indicated under
“Fee * * *” are provided for
estimating purposes only and are not binding on Transmeta or Fujitsu and do not affect the
quarterly Technical Support Service fee payable by Fujitsu, as specified below. The specific
services and deliverables (if any) for each project performed by Transmeta as part of Technical
Support Services will be as mutually agreed to by the parties.

	 	 	 	 	 	 	 
	Project	 	Estimated	 	Fee	 	 
	Description	 	* * *	 	* * *	 	Total
	 
	 
	 	 	 	 	 	 
	Consulting on LongRun2 * * *

	 	* * *
	 	* * *	 	 
	 
	 	 	 	 	 	 
	Consulting on * * *

	 	* * *
	 	* * *	 	 
	* * *
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Design of * * *

	 	* * *
	 	* * *	 	 
	(* * *)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total

	 	* * *
	 	* * *	 	* * *

Technical Support Services Fee. The fee for Technical Support Services shall be * * *.
Such fee will be due and payable no later than the * * *. Fujitsu may request a different level of
Technical Support Services at a rate to be agreed to by the parties.

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 24 
	 	November, 2004

 

 

EXHIBIT D

Technology Transfer Service Fees

Technology Transfer Services Fee. Pursuant to Section 3.5, Fujitsu will pay Transmeta a
one-time technology transfer services fee of * * *, as follows:

	 	 	 
	Installment

	 	Due and Payable Date
	 
	 	 
	* * *

	 	within * * * after the execution of this Agreement,
	 
	 	 
	* * *

	 	within * * * after Transmeta’s delivery of all Transmeta Technology
Deliverables pursuant to Section 3.1

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 25 
	 	November, 2004

 

 

EXHIBIT E

Royalties

     Royalty Schedules

     (a) Royalty on Fujitsu-Branded Products. For any Licensed LongRun2 Product sold or
Otherwise Disposed Of (defined below) by Fujitsu or a sublicensed Fujitsu Subsidiary as finished
goods in assembled form under a Fujitsu or Fujitsu Subsidiary brand, Fujitsu will pay royalties
calculated in accordance with the royalty schedule set forth below:

	 	 	 	 	 	 
	 
	 	Cumulative Fujitsu-Branded Products	 	 	Royalty as * * * 1,2	 
	 	* * *
	 	 	* * *	 
	 	* * *
	 	 	* * *	 
	 	* * *
	 	 	* * *	 
	 	* * *
	 	 	* * *	 
	 	* * *
	 	 	* * *	 
	 	* * *
	 	 	* * *	 
	 	* * *
	 	 	* * *	 
	 

     Notes to Royalty Schedule

	 	1.  	[* * *]

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 26 
	 	November, 2004

 

 

	 	2.  	Royalties will be calculated in accordance with the following:

     [* * *].1

	 	 	 	 	 	 	 	 	 
	 
	 	Cumulative 8” equivalent	 	 	Royalty for 8"	 	 	Royalty for 12" or other size wafers4	 
	 	wafers2,3	 	 	wafers4	 	 	 	 
	 	* * *
	 	 	* * *
	 	 	* * *	 
	 	* * *
	 	 	* * *
	 	 	* * *	 
	 	* * *
	 	 	* * *
	 	 	* * *	 
	 	* * *
	 	 	* * *
	 	 	* * *	 
	 	* * *
	 	 	* * *
	 	 	* * *	 
	 	* * *
	 	 	* * *
	 	 	* * *	 
	 

     Note to Royalty Schedule

	 	1.  	[* * *]
	 
	 	2.  	[* * *]
	 
	 	3.  	[* * *]
	 
	 	4.  	[* * *].
	 
	 	5.  	[* * *].

* * * Confidential treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidential request. Omissions are designated as
* * *. A complete version of this exhibit has been filed separately with the Securities and
Exchange Commission.

 

					
	Fujitsu / Transmeta Agreement
	 	 27 
	 	November, 2004

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