Document:

Amendment Number Four to Credit Agreement and Consent dated, October 29, 2010

 Exhibit 10.8 
 AMENDMENT NUMBER FOUR TO CREDIT AGREEMENT AND CONSENT 
 This Amendment Number Four to Credit Agreement and Consent (“Amendment”) is entered into as of October 29, 2010, by and among the lenders identified on the signature pages hereof
(such lenders, together with their respective successors and permitted assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), and WELLS FARGO CAPITAL FINANCE,
LLC, a Delaware limited liability company, as the agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, “Agent”), on the one hand, and MAGMA DESIGN AUTOMATION, INC., a
Delaware corporation (“Borrower”), on the other hand, with reference to the following facts: 

A. Borrower, Agent, and Lenders have previously entered into that certain Credit Agreement, dated as of March 19,
2010 (as amended and modified, from time to time, the “Agreement”). 
 B. Borrower has
requested that Agent and Lenders provide certain consents and make certain amendments to the Agreement as provided for and on the conditions set forth herein. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto amend and supplement the Agreement as follows: 

1. DEFINITIONS. All initially capitalized terms used in this Amendment shall have the meanings given to
them in the Agreement unless specifically defined herein. 
 2. AMENDMENTS. 

(a) Schedule 1.1 of the Agreement is amended to include the following terms: 

“Fourth Amendment Effective Date” has the meaning specified therefore in that certain
Amendment Number Four to Credit Agreement and Consent by and among Borrower, Agent and Lenders have been satisfied. 
 “Term Loan A” has the meaning specified therefor in Section 2.2(a) of the Agreement. 

“Term Loan A Amount” means $15,000,000. 

“Term Loan A Commitment” means, with respect to each Lender, its Term Loan A Commitment,
and, with respect to all Lenders, their Term Loan A Commitments, in each case as such Dollar amounts are set forth beside such Lender’s name under the applicable heading on Schedule C-l or in the Assignment and Acceptance pursuant to which such
Lender became a Lender under the Agreement, as such amounts may be reduced or increased from time to time pursuant to assignments made in accordance with the provisions of Section 13.1 of the Agreement. 

“Term Loan B” has the meaning specified therefor in Section 2.2(b) of the Agreement.

 “Term Loan B Amount” means $10,000,000. 

“Term Loan B Commitment” means, with respect to each Lender, its Term Loan B Commitment,
and, with respect to all Lenders, their Term Loan B Commitments, in each case as such Dollar amounts are set forth beside such Lender’s name under the applicable heading on Schedule C-l or in the Assignment and Acceptance pursuant to which such
Lender became a Lender under the Agreement, as such amounts may be reduced or increased from time to time pursuant to assignments made in accordance with the provisions of Section 13.1 of the Agreement. 

“Term Loans” mean, collectively, Term Loan A and Term Loan B. 

  
 1 

 (b) The following definitions set forth in Schedule 1.1 of
the Agreement are amended to read as follows: 
 “Base Rate Margin” means 3.00
percentage points with respect to Term Loan B Base Rate Loans and 4.50 percentage points with respect to other Base Rate Loans. 
 “Commitment” means, with respect to each Lender, its Revolver Commitment, its Term Loan A Commitment, its Term Loan B Commitment, or its Total Commitment, as the context requires, and,
with respect to all Lenders, their Revolver Commitments, their Term Loan A Commitments, their Term Loan B Commitments, or their Total Commitments, as the context requires, in each case as such Dollar amounts are set forth beside such Lender’s
name under the applicable heading on Schedule C-l or in the Assignment and Acceptance pursuant to which such Lender became a Lender under the Agreement, as such amounts may be reduced or increased from time to time pursuant to assignments made in
accordance with the provisions of Section 13.1 of the Agreement. 
 “Credit
Amount” means the result of (a) 0.50 times (b) TTM Recurring Revenue calculated as of the last month for which financial statements have most recently been delivered pursuant to Section 5.1 of the Agreement minus the
aggregate amount of reserves, if any, established by Agent under Section 2.1(c) of the Agreement. 
 “LIBOR Rate Margin” means 3.00 percentage points with respect to Term Loan B LIBOR Rate Loans and 4.50 percentage points with respect to other LIBOR Rate Loans. 

(c) Clause (c) of the definition of Pro Rata Share set forth in Schedule 1.1 of the Agreement is
amended to read as follows: 
 (c) with respect to (i) a Lender’s obligation to make
Term Loan A and right to receive payments of interest, fees, and principal with respect thereto, (A) prior to the making of Term Loan A, the percentage obtained by dividing (y) such Lender’s Term Loan A Commitment, by (z) the
aggregate amount of all Lenders’ Term Loan A Commitments, and (B) from and after the making of Term Loan A, the percentage obtained by dividing (y) the principal amount of such Lender’s portion of Term Loan A by (z) the
principal amount of Term Loan A, and (ii) a Lender’s obligation to make Term Loan B and right to receive payments of interest, fees, and principal with respect thereto, (A) prior to the making of Term Loan B, the percentage obtained
by dividing (y) such Lender’s Term Loan B Commitment, by (z) the aggregate amount of all Lenders’ Term Loan B Commitments, and (B) from and after the making of Term Loan B, the percentage obtained by dividing (y) the
principal amount of such Lender’s portion of Term Loan B by (z) the principal amount of Term Loan B, and 
 (d) The definitions of Term Loan, Term Loan Amount and Term Loan Commitment as set forth in Schedule 1.1 of the Agreement are deleted, and all references to the Term Loan in the Agreement, including
Schedule 1.1 thereto, that are not otherwise amended hereby are replaced with references to the Term Loans as defined herein. 

  
 2 

 (e) Section 2.2 of the Agreement is amended to read as
follows: 
 2.2 Term Loans. 

(a) Term Loan A. Subject to the terms and conditions of this Agreement, on the Fourth Amendment
Effective Date each Lender with a Term Loan A Commitment has agreed (severally, not jointly or jointly and severally) to continue the term loans (collectively, “Term Loan A”) to Borrower in an amount equal to such Lender’s Pro
Rata Share of the Term Loan A Amount. The principal of Term Loan A shall be repaid on the following dates and in the following amounts: 
  

					
	 Date
	  	Installment Amount	 
	 October 31, 2010
	  	$	562,500	  
	 January 31, 2011
	  	$	562,500	  
	 April 30, 2011
	  	$	562,500	  
	 July 31, 2011
	  	$	562,500	  
	 October 31, 2010
	  	$	562,500	  
	 January 31, 2012
	  	$	562,500	  
	 April 30, 2012
	  	$	562,500	  
	 July 31, 2012
	  	$	562,500	  
	 October 31, 2012
	  	$	562,500	  
	 January 31, 2013
	  	$	562,500	  
	 April 30, 2013
	  	$	562,500	  
	 July 31, 2013
	  	$	562,500	  
	 October 31, 2013
	  	$	562,500	  
	 January 31, 2014
	  	$	562,500	  
	 April 30, 2014
	  	$	562,500	  
	 July 31, 2014
	  	$	562,500	  

 The outstanding unpaid principal balance and all accrued and unpaid interest on Term Loan A shall be due and payable on the earlier of (i) the Maturity Date and (ii) the date of the acceleration
of Term Loan A in accordance with the terms hereof. Any principal amount of Term Loan A that is repaid or prepaid may not be reborrowed. All principal of, interest on, and other amounts payable in respect of Term Loan A shall constitute Obligations.

  
 3 

 (b) Term Loan B. Subject to the terms and conditions
of this Agreement, on the Fourth Amendment Effective Date each Lender with a Term Loan B Commitment agree (severally, not jointly or jointly and severally) to make the term loans (collectively, “Term Loan B”) to Borrower in an
amount equal to such Lender’s Pro Rata Share of the Term Loan B Amount. The principal of Term Loan B shall be repaid on the following dates and in the following amounts: 

 

					
	 Date
	  	Installment Amount	 
	 April 30, 2011
	  	$	375,000	  
	 July 31, 2011
	  	$	375,000	  
	 October 31, 2010
	  	$	375,000	  
	 January 31, 2012
	  	$	375,000	  
	 April 30, 2012
	  	$	375,000	  
	 July 31, 2012
	  	$	375,000	  
	 October 31, 2012
	  	$	375,000	  
	 January 31, 2013
	  	$	375,000	  
	 April 30, 2013
	  	$	375,000	  
	 July 31, 2013
	  	$	375,000	  
	 October 31, 2013
	  	$	375,000	  
	 January 31, 2014
	  	$	375,000	  
	 April 30, 2014
	  	$	375,000	  
	 July 31, 2014
	  	$	375,000	  

 The outstanding unpaid principal balance and all accrued and unpaid interest on Term Loan B shall be due and payable on the earlier of (i) the Maturity Date and (ii) the date of the acceleration
of Term Loan B in accordance with the terms hereof. Any principal amount of Term Loan B that is repaid or prepaid may not be reborrowed. All principal of, interest on, and other amounts payable in respect of Term Loan B shall constitute Obligations.

 (f) Clause (I) and (J) of Section 2.4(b)(ii) of the Agreement are amended to
read as follows: 
 (I) ninth, ratably, to pay interest accrued in respect of the Advances
(other than Protective Advances), Term Loan A and Term Loan B until paid in full, 
 (J)
tenth, ratably (i) to pay the principal of all Advances until paid in full, (ii) to Agent, to be held by Agent, for the benefit of Issuing Lender (and for the ratable benefit of each of the Lenders that have an obligation to pay to
Agent, for the account of the Issuing Lender, a share of each Letter of Credit Disbursement), as cash collateral in an amount up to 105% of the Letter of Credit Usage (to the extent permitted by applicable law, such cash collateral shall be applied
to the reimbursement of any Letter of Credit Disbursement as and when such disbursement occurs and, if a Letter of Credit expires undrawn, the cash collateral held by Agent in respect of such Letter of Credit shall, to the extent permitted by
applicable law, be reapplied pursuant to this Section 2.4(b)(ii), beginning with tier (A) hereof), (iii) ratably, to the Bank Product Providers based upon amounts then certified by the applicable Bank Product Provider to Agent (in
form and substance satisfactory to Agent) to be due and payable to such Bank Product Providers on account of Bank Product Obligations, (iv) to pay the outstanding principal balance of Term Loan A (in the inverse order of the maturity of the
installments due thereunder) until Term Loan A is paid in full, and (v) to pay the outstanding principal balance of Term Loan B (in the inverse order of the maturity of the installments due thereunder) until Term Loan B is paid in full,

  
 4 

 (g) Clause (ii) of Section 2.4(c) of the Agreement
is amended to read as follows: 
 (ii) Term Loan Commitments. The Term Loan A Commitments
shall terminate upon the making of Term Loan A. The Term Loan B Commitments shall terminate upon the making of Term Loan B. 
 (h) Clause (ii) of Section 2.4(d) of the Agreement is amended to read as follows: 
 (ii) Term Loan A. Borrower may, upon at least 10 Business Days’ prior written notice to Agent, prepay the principal of Term Loan A, in whole or in part. Each such prepayment shall be in an
amount which is not less than $1,000,000 unless the principal of Term Loan A immediately prior to such prepayment is less than $1,000,000. Each prepayment made pursuant to this Section 2.4(d)(ii) shall be accompanied by the payment of accrued
interest to the date of such payment on the amount prepaid. Each such prepayment shall be applied against the remaining installments of principal due on Term Loan A on a pro rata basis (for the avoidance of doubt, any amount that is due and payable
on the Maturity Date shall constitute an installment). 
 (i) Clause (iii) of
Section 2.4(d) of the Agreement is added to read as follows: 
 (iii) Term Loan B.
Borrower may, upon at least 10 Business Days’ prior written notice to Agent, prepay the principal of Term Loan B, in whole or in part. Each such prepayment shall be in an amount which is not less than $1,000,000 unless the principal of Term
Loan A immediately prior to such prepayment is less than $1,000,000. Each prepayment made pursuant to this Section 2.4(d)(iii) shall be accompanied by the payment of accrued interest to the date of such payment on the amount prepaid. Each such
prepayment shall be applied against the remaining installments of principal due on Term Loan B on a pro rata basis (for the avoidance of doubt, any amount that is due and payable on the Maturity Date shall constitute an installment). 

(j) Clause (i) and (ii) of Section 2.4(f) of the Agreement are amended to read as follows:

 (i) Each prepayment pursuant to Section 2.4(e)(i) shall, (A) so long as no
Application Event shall have occurred and be continuing, be applied, first, to the outstanding principal amount of the Advances until paid in full, second, to the outstanding principal amount of Term Loan A and Term Loan B, ratably,
until paid in full, and third, to cash collateralize the Letters of Credit in an amount equal to 105% of the then extant Letter of Credit Usage, and (B) if an Application Event shall have occurred and be continuing, be applied in the
manner set forth in Section 2.4(b)(ii). Each such prepayment of Term Loan A and Term Loan B shall be applied against the remaining installments of principal of Term Loan A and Term Loan B, respectively, on a pro rata basis (for the avoidance of
doubt, any amount that is due and payable on the Maturity Date shall constitute an installment). 

(ii) Each prepayment pursuant to Section 2.4(e)(ii), 2.4(e)(iii), 2.4(e)(iv), 2.4(e)(v), or
2.4(e)(vi) above shall (A) so long as no Application Event shall have occurred and be continuing, be applied, first, to the outstanding principal amount of Term Loan A and Term Loan B, ratably, until paid in full, second, to the
outstanding principal amount of the Advances (with a corresponding permanent reduction in the Maximum Revolver Amount), until paid in full, and third, to cash collateralize the Letters of Credit in an amount equal to 105% of the then extant
Letter of Credit Usage (with a corresponding permanent reduction in the Maximum Revolver Amount), and (B) if an Application Event shall have occurred and be continuing, be applied in the manner set forth in Section 2.4(b)(ii). Each such
prepayment of Term Loan A and Term Loan B shall be applied against the remaining installments of principal of Term Loan A and Term Loan B, respectively, on a pro rata basis (for the avoidance of doubt, any amount that is due and payable on the
Maturity Date shall constitute an installment). 
 (k) Section 3.3 of the Agreement is
amended to read as follows: 
 3.3 Maturity. This Agreement shall continue in full
force and effect for a term ending on October 29, 2014 (the “Maturity Date”). The foregoing notwithstanding, the Lender Group, upon the election of the Required Lenders, shall have the right to terminate its obligations under
this Agreement immediately and without notice upon the occurrence and during the continuation of an Event of Default. 

  
 5 

 (1) Section 14.1(a)(xi) of the Agreement is amended to
read as follows: 
 (xi) amend, modify, or eliminate the definition of Credit Amount or any of
the defined terms (including the definitions of TTM Recurring Revenue and TTM EBITDA) that are used in such definition to the extent that any such change results in more credit being made available to Borrower based upon the Credit Amount, but not
otherwise, or the definitions of Maximum Revolver Amount, Term Loan A Amount or Term Loan B Amount, or change Section 2.1(c). 
 (m) The table set forth on Schedule 1.1 to the Agreement is amended to read as follows: 
  

																	
	 Lender
	  	Revolver
Commitment	 	  	Term Loan A
Commitment	 	  	Term Loan B
Commitment	 	  	Total
Commitment	 
	 Wells Fargo Capital Finance LLC
	  	$	15,000,000	  	  	$	15,000,000	  	  	$	10,000,000	  	  	$	40,000,000	  
	 All Lenders
	  	$	15,000,000	  	  	$	15,000,000	  	  	$	10,000,000	  	  	$	40,000,000	  

 3.
CONSENT. Borrower has informed Agent and Lenders that it intends to (i) repurchase and retire a portion of the outstanding 2014 Notes (the “Note Repurchase”) and in order to induce certain holders of the 2014 Notes
into the Note Repurchase, Borrower has proposed to pay each such holder an inducement fee (an “Inducement Fee”), and (ii) repurchase certain of its common stock (the “Stock Repurchase”). As the Note Repurchase,
Stock Repurchase and the payment of the Inducement Fees are prohibited by the terms of the Agreement, Borrower has requested that Agent and Lenders consent thereto. Agent and Lenders hereby consent to the Note Repurchase, the Stock Repurchase and
the payment of the Inducement Fees so long as: (i) no Default or Event of Default exists at the time the Note Repurchase, the Stock Repurchase or an Inducement Fee is made or will result therefrom, (ii) the amount of the Inducement Fees
paid to the holders of the 2014 Notes does not exceed an aggregate amount equal to 15% of the face value of the 2014 Notes being repurchased, (iii) the Note Repurchase, the Stock Repurchase and the payment of the Inducement Fees are completed
by no later than October 31, 2011, (iv) the aggregate amount of consideration paid after the Fourth Amendment Effective Date for the Stock Repurchase and Note Repurchase does not exceed $25,000,000, and (v) immediately before and
after giving effect to the Note Repurchase, the Stock Repurchase or the payment of an Inducement Fee, Availability plus domestic Qualified Cash is in an amount equal to or greater than $20,000,000. This consent shall be effective only in this
specific instance and for the specific purpose for which it is given, and shall not entitle Borrower to any other or further consent or waiver in any similar or other circumstances. 

4. REPRESENTATIONS AND WARRANTIES. Borrower hereby affirms to Agent and Lenders that all of Borrower’s
representations and warranties set forth in the Agreement are true, complete and accurate in all respects as of the date hereof. 
 5. NO DEFAULTS. Borrower hereby affirms to Agent and Lenders that no Event of Default has occurred and is continuing as of the date hereof. 

6. CONDITIONS PRECEDENT. The effectiveness of this Amendment is hereby conditioned upon receipt by Agent of
(i) a fully executed copy of this Amendment from each party hereto (ii) a fully executed copy of the attached Reaffirmation of General Continuing Guaranty, and (iii) a fully executed copy of the Amended and Restated Fee Letter (the
first date on which all such conditions have been satisfied is referred hereto as, the “Fourth Amendment Effective Date”). 
 7. REAFFIRMATION. Borrower acknowledges and reaffirms (i) all of its obligations and duties under the Loan Documents, and (ii) that the Agent, for the ratable benefit of the Lender
Group, has and shall continue to have valid, perfected Liens in the Collateral as provided in the Security Agreement. 

  
 6 

 8. COSTS AND EXPENSES. Borrower shall pay to Agent and Lenders
all of Agent’s and Lenders’ out-of-pocket costs and expenses (including, without limitation, the fees and expenses of its counsel, which counsel may include any local counsel deemed necessary, search fees, filing and recording fees,
documentation fees, appraisal fees, travel expenses, and other fees) arising in connection with the preparation, execution, and delivery of this Amendment and all related documents. 

9. LIMITED EFFECT. In the event of a conflict between the terms and provisions of this Amendment and the
terms and provisions of the Agreement, the terms and provisions of this Amendment shall govern. In all other respects, the Agreement, as amended and supplemented hereby, shall remain in full force and effect. 

10. COUNTERPARTS; EFFECTIVENESS. This Amendment may be executed in any number of counterparts and by
different parties on separate counterparts, each of which when so executed and delivered shall be deemed to be an original. All such counterparts, taken together, shall constitute but one and the same Amendment. This Amendment shall become effective
upon the execution of a counterpart of this Amendment by each of the parties hereto. This Amendment is a Loan Document and is subject to all the terms and conditions, and entitled to all the protections, applicable to Loan Documents generally.

 [remainder of page left blank intentionally; signatures to follow] 

  
 7 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of
the date first set forth above. 
  

			
	 MAGMA DESIGN AUTOMATION, INC.,
 a Delaware corporation

		
	 By:
	 	 /s/ Peter S. Teshima

	 Name: 
	 	 Peter S. Teshima

	 Title:
	 	 CFO

Amendment Number Four to Credit Agreement and Consent 

  

			
	 WELLS FARGO CAPITAL FINANCE, LLC,
 a Delaware limited liability company,
as Agent and Lender

		
	By:	 	 /s/ David Morihiro

	 Name: 
	 	 David Morihiro

	 Title:
	 	 VP

 Amendment
Number Four to Credit Agreement and Consent 

 REAFFIRMATION OF GENERAL CONTINUING GUARANTY 

Dated as of October 29, 2010 
 The undersigned (the “Guarantor”), has executed a General Continuing Guaranty, dated as of March 19, 2010 (the “Guaranty”), in favor of Wells Fargo Capital
Finance, LLC (“Agent”), respecting the obligations of Magma Design Automation, Inc., a Delaware corporation (“Borrower”) pursuant to that certain Credit Agreement dated as of March 19, 2010 by and among
Borrower, the Lenders signatory thereto and Agent, and other Loan Documents. Guarantor acknowledges the terms of the above Amendment and reaffirms and agrees that: (a) its Guaranty remains in full force and effect; (b) nothing in the
Guaranty obligates Agent to notify the undersigned of any changes in the loans and financial accommodations made available to Borrower or to seek reaffirmation of the Guaranty; and (c) no requirement to so notify any of the undersigned or to
seek reaffirmation in the future shall be implied by the execution of this reaffirmation. 
  

									
	GUARANTOR:	 		 	 MAGMA SERVICES, INC.,
 a Delaware corporation

					
		 		 		 	 By:
	 	 /s/ Peter S. Teshima

		 		 		 	 Name: 
	 	 Peter S. Teshima

		 		 		 	 Title:
	 	 CFO

 Reaffirmation
of General Continuing GuarantySettlement and License Agreement by and between the Company and Apple Inc

 REDACTED COPY 

 

 Exhibit 10.1 

SETTLEMENT AND LICENSE AGREEMENT 
 This Settlement and License Agreement (“Agreement”) is made as of December 6, 2010 (“Effective Date”) between Apple Inc., a California corporation (“Apple”) and OPTi
Inc., a California corporation (“OPTi”). As used herein, “Party” refers to either OPTi or Apple, and “Parties” refers to OPTi and Apple collectively. 

WHEREAS, Apple desires to acquire a non-exclusive license under all patents owned, controlled, or licensable by OPTi, and to resolve any
disputes related thereto. 
 WHEREAS OPTi brought suit against Apple in OPTi Inc. v. Apple Inc., Civil Action
No. 2:07-CV-00021 (CE) (E.D. Tex.) and, following entry of judgment in that case, Apple and OPTi filed appeals in the United States Court of Appeals for the Federal Circuit, Nos. 2010-1129, -1286 (collectively, the “Lawsuit”); and

 WHEREAS the Parties now desire to settle the Lawsuit and enter into this agreement providing for a full, final, complete and
global settlement of the subject matter of the Lawsuit and for certain releases, licenses and covenants not to sue, all on the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the above premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties, intending to be legally bound, hereby agree as follows: 
  

	1.0	DEFINITIONS. 

 1.1
“Licensed Product” means any product, product line, service, device, system, component, hardware, software, any combination of the foregoing, or other offering that is designed, branded, made, used, sold, offered for sale, leased,
purchased, licensed, imported, exported, supplied or otherwise provided by or for Apple or an Apple Affiliate. 
 1.2 “OPTi
Patents” means (i) all patents and patent applications (along with patents issuing thereon) in all jurisdictions worldwide that are, at any time during the term of this Agreement, assigned to, owned by, or controlled by OPTi or its
Affiliates, or to which OPTi or its Affiliates have a right to assert a claim of infringement or to grant licenses, including without limitation the patents listed on Exhibit A hereto and (ii) any divisionals, continuations,
continuations-in-part, reissues, reexaminations, utility models, foreign counterpart, parent or extension of any patent or application included in section 1.2(i) or (ii), and any patent or patent application whose priority is based upon or in common
with such patents and patent applications. 

  

			
	Page 1	 	CONFIDENTIAL SETTLEMENT AND LICENSE AGREEMENT BETWEEN OPTI AND APPLE, 12/6/10
	  
 [***] Confidential treatment requested under
Rule 24b-2 of the Securities Exchange Act of 1934, as amended. Confidential portion omitted and filed separately with the Commission.

 REDACTED COPY 

 

 1.3 “Affiliate” means, with respect to a person, corporation or other entity,
any other person, corporation or entity that directly or indirectly owns, is owned by, or is under common ownership with such corporation or entity. 
  

	2.0	LICENSE AND RELEASE. 

 2.1
License. OPTi, on behalf of itself, its Affiliates, and their successors and assigns, grants to Apple, its Affiliates, and their successors and assigns, a nonexclusive, perpetual, irrevocable, fully paid-up, royalty-free, worldwide license
under the OPTi Patents to make, have made, use, purchase, sell, offer for sale, license, lease, import, export, or otherwise dispose of Licensed Products, and to practice and have practiced any method in connection therewith, by or for Apple or its
Affiliates. 
 2.2 Covenant. In addition to Sections 2.1 and 2.3, OPTi, on behalf of itself, its Affiliates, and their
successors and assigns, hereby covenants not to sue Apple, its Affiliates, their successors and assigns, direct or indirect customers, users, licensees, service providers, distributors, retailers, or direct and indirect suppliers for infringement of
the OPTi Patents with respect to Licensed Products licensed above in Section 2.1. No Licensed Product shall be used to satisfy any claim or claim element asserted by OPTi or its Affiliates, and their successors and assigns, against Apple, its
Affiliates, their successors and assigns, customers, users, licensees, service providers, distributors, retailers, or direct and indirect suppliers. 
 2.3 Release. In addition to Sections 2.1 and 2.2, the Parties, on behalf of themselves, their Affiliates, and their successors and assigns hereby release, acquit and forever discharge one another
(together with their Affiliates, predecessors, successors, agents, attorneys, insurers, servants, distributors, licensees, service providers, retailers, suppliers, employees, officers, directors, users and customers) from any and all actions, causes
of action, claims or demands, liabilities, losses, damages, attorney fees, court costs, or any other form of claim or compensation, whether known or unknown as of the Effective Date, arising out of the facts, events or occurrences underlying or
giving rise to or otherwise related to, the allegations in the Lawsuit or infringement of the OPTi Patents, and covenants not to sue any released party on account of any such claim. 

2.4 The Parties, having specific intent to release all potential claims described in the foregoing sections 2.1, 2.2 and 2.3, whether
known or unknown, do hereby acknowledge and expressly waive the provisions of section 1542 of the California Civil Code (and similar provisions in other jurisdictions, whether by statute or common law), which provides: 

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

  

			
	Page 2	 	CONFIDENTIAL SETTLEMENT AND LICENSE AGREEMENT BETWEEN OPTI AND APPLE, 12/6/10
	  
 [***] Confidential treatment requested under
Rule 24b-2 of the Securities Exchange Act of 1934, as amended. Confidential portion omitted and filed separately with the Commission.

 REDACTED COPY 

 

 2.5 Dismissal. Concurrent with execution of this Agreement, OPTi and Apple shall
dismiss with prejudice the appeal pending in the Lawsuit before the United States Court of Appeals for the Federal Circuit in matters no. 2010-1129, -1286, including taking all necessary steps and filing all necessary documents attendant thereto.
Apple makes no admission of infringement or liability by the negotiation, execution, or performance of this Agreement. 
 2.6
The Parties acknowledge and agree that Licensed Products may include software products that are often distributed to customers by providing a master copy of Apple software to a distributor, replicator, original equipment manufacturer, value-added
reseller, or other third party authorized to reproduce and distribute a final product of the third party including the software. Accordingly the licenses and other rights granted in this Section 2 shall apply to the reproduction and
distribution by authorized third parties of such software. 
 2.7 To the extent that OPTi does not have the right to grant fully
the releases, licenses, covenants and other rights set out in this Agreement, it grants the broadest such rights that it is entitled to grant consistent with the terms set out herein. 

 

	3.0	CONSIDERATION. 

 3.1
Within ten (10) business days of the Effective Date, or within ten (10) business days of the last signature set out below, whichever is later, Apple will pay to OPTi the sum of Twelve Million Two Hundred and Fifty Thousand United States
dollars ($12,250,000US). Payment shall be made by electronic transfer of funds to OPTi’s bank account as follows: 
  

							
		 	Bank Name:	  	[***]	  	
		 	Bank Address:	  	[***]	  	
		 	ABA No.:	  	[***]	  	
		 	Account No.:	  	[***]	  	
		 	Account Name:	  	[***]	  	

 3.2 The payment of Section 3.1 shall be the total compensation paid to OPTi for the rights
granted in this Agreement, and no additional payment will be made to OPTi or any other party by Apple. The parties stipulate and agree that the payment called for by Section 3.1 shall be allocated as follows: $9,850,000 shall be deemed payment
for the release and license granted pursuant to United States Patents No. 5,710,906; 5,813,036; 6,405,291, with the balance due allocated to the remaining patent rights granted under this agreement. 

3.3 OPTi will be responsible for any duties, taxes, and levies to which it is subject as a result of any payment hereunder. 

  

			
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 3.4 No later than three (3) business days after the Effective Date of this
Agreement, OPTi shall provide Apple with a completed IRS Form W9. If OPTi fails to provide such tax documentation or fails to provide tax documentation sufficient to allow a zero (0) percent tax rate, Apple may, at its discretion, cause taxes
to be deducted from the amount paid and cause such withholding taxes to be paid to the appropriate tax authority. For avoidance of doubt, in such case the actual payment to OPTi will be net of any taxes withheld. 

3.5 No later that five (5) business days after receipt of the payments required by Sections 3.1 and 3.2 of this Agreement, OPTi
shall file with the United States District Court for the Eastern District of Texas a satisfaction of the judgment entered in Case No. 2:07-CV-21-CE on December 3, 2009, in such form as to reflect Apple’s full and complete satisfaction
of the judgment by virtue of the payment and consideration provided pursuant to this Agreement. 
  

	4.0	WARRANTIES. 

 4.1 Apple
warrants and represents that it is a validly existing business and in good standing under the laws of the respective jurisdictions in which it has activities, and has the full power and authority to enter into this Agreement and to perform its
obligations hereunder and consummate the transactions contemplated herein. 
 4.2 OPTi represents and warrants to Apple that:
(a) it has all requisite legal right, power and authority to execute, deliver and perform this Agreement; (b) it owns the OPTi Patents, and that no other third party owns any right to enforce or recover for infringement of the OPTi Patents
by Apple or its Affiliates at any time during the term of this Agreement; and (c) it has not granted and will not grant any licenses or other rights, under the OPTi Patents or otherwise, that would conflict with or prevent the licenses,
covenants, releases and rights granted to Apple and its Affiliates hereunder. OPTi represents and warrants that there are no liens, conveyances, mortgages, assignments, encumbrances, or other agreements that would prevent or impair the full and
complete exercise of the terms of this Agreement. OPTi agrees to indemnify and hold Apple and its Affiliates harmless in the event that Apple is found liable in connection with any claim brought by a third party who claims any interest in, or any
right to recover under any OPTi Patent. OPTi shall not grant or assign any rights under the OPTi Patents, unless such grants or assignments are made subject to the rights granted in this Agreement. 

4.3 OPTi represents and warrants that it does not directly or indirectly own a controlling interest in, nor is it owned or controlled by
or in common with, any other company or other entity that owns any patents or patent applications other than the OPTi Patents. For the purposes of this provision “control,” “controlling interest,” and their cognates shall refer
to direct or indirect ownership of 50% or more of the voting shares of an entity. The express purpose of this clause is to permit Apple to understand all patent rights that could be asserted against it by anyone having an interest in the OPTi

  

			
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Patents; as such, any omission is deemed material to this entire Agreement. In the event that, and notwithstanding this representation and warranty of Section 4.3, there are other patents
that are directly or indirectly owned or controlled by OPTi or another entity that is owned or controlled by or in common with OPTi, then such other patents shall be treated as if they were OPTi Patents for the purposes of all licenses, covenants,
releases and other rights granted in this Agreement. 
  

	5.0	TERM AND TERMINATION. 

5.1 This Agreement shall not be binding on the Parties until it has been signed below by both Parties, at which time it shall be deemed
effective as of its Effective Date. The Agreement shall remain in full force and effect until the expiration of the last to expire of the OPTi Patents. At that time, the licenses, covenants, and releases of Section 2.0 shall remain in effect in
perpetuity with respect to rights granted prior to the expiration. 
 5.2 Other than as set forth in Section 5.1, this
Agreement may only be terminated by mutual written agreement of the Parties. 
  

	6.0	ASSIGNABILITY. 

 6.1
Neither party may grant or assign any rights or delegate any duties under this Agreement to any third party without the prior written consent of the other, and any attempted assignment without such consent shall be null and void. Notwithstanding the
foregoing, Apple may (i) assign rights under this Agreement to any of its Affiliates and (ii) assign rights under this Agreement to (a) an acquirer of all or substantially all of the equity or assets of its business to which this
Agreement relates, but only with respect to the business acquired or (b) the surviving entity in any merger, consolidation, equity exchange, or reorganization of its business to which this Agreement relates, but only with respect to the
business covered by this Agreement. All license rights and covenants contained herein shall run with the Patents and shall be binding on any successors-in-interest or assigns thereof. OPTi and its Affiliates shall not assign, or grant any right
under, any OPTi Patent to any other party unless such assignment or grant is subject to all of the terms and conditions of this Agreement, and such other party executes an agreement agreeing to be bound by all of the terms and conditions of this
Agreement. Any attempted assignment or grant in contravention of this Section 6.1 shall be null and void. This Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their permitted successors and
assigns. 
  

	7.0	CONFIDENTIALITY. 

 7.1 The
terms of this Agreement and all correspondence relating to this Agreement are confidential. The Parties shall keep terms and particulars of this Agreement strictly confidential and no Party shall now or hereafter disclose such terms

  

			
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and particulars to any third party except: (i) with the prior written consent of the other Party, (ii) as may be required by applicable law, regulation or order of a governmental
authority of competent jurisdiction (including without limitation, disclosures which OPTi reasonably and in good faith believes to be appropriate to meet its obligations under the securities laws of the United States), (iii) during the course
of litigation so long as the disclosure of such terms and conditions is subject to the same restrictions as is the confidential information of the other litigating parties, such restrictions are embodied in a court-entered protective order limiting
disclosure to outside counsel and such disclosing Party provides the other Party written notice at least ten (10) business days prior to such disclosure, (iv) in confidence to the professional legal and financial counsel representing such
Party, or (v) in confidence to any party covered by the releases, licenses or covenants granted herein. With respect to the foregoing (ii), such disclosing Party shall, to the extent legally permissible, provide the other Party with prior
written notice of such applicable law, regulation or order and, at the request of the other Party, use reasonable efforts to limit the disclosure of the terms and conditions of this Agreement, and to obtain a protective order or other confidential
treatment. 
 7.2 Except as authorized in Paragraph 7.1, neither Party shall issue a press release or make any other public
statement regarding this Agreement or the settlement of the Lawsuit, except that either party may make any statement it deems appropriate to satisfy its various public reporting obligations. Neither party shall directly or indirectly seek to
initiate or respond to any inquiry by the press concerning the other party, the Agreement, the settlement, or the Lawsuit. In any public statements or filings made by either party, which shall be made only as permitted by Paragraph 7.1 and/or 7.2,
the party shall expressly state that Apple has paid a total of $12,250,000, of which $9,850,000 was for the release and license granted pursuant to United States Patents No. 5,710,906; 5,813,036; 6,405,291 relating to the technology at issue in
the Lawsuit, with an additional payment for a concurrent license pertaining to the remaining patent rights granted under this Agreement. 
 7.3 The confidentiality provisions of this Agreement are material terms of this Agreement, and any breach of these provisions will constitute a material breach of this Agreement. The failure of any Party
to enforce at any time any of the provisions governing the confidentiality of the terms of this Agreement or to require at any time performance by any of the Parties of any such provisions shall in no way be construed as a waiver of such provision
or relinquishment of the right thereafter to enforce such provision. 
  

	8.0	NOTICES. 

 8.1 All notices
required or permitted to be given hereunder shall be in writing and shall be deemed delivered (i) upon receipt if delivered by hand, (ii) the next business day after being sent by prepaid, nationally-recognized, overnight air courier,
(iii) five (5) business days after being sent by registered or certified airmail, return receipt required, postage prepaid, or (iv) upon transmittal when transmitted by confirmed telecopy

  

			
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(provided that such notice is followed notice pursuant to any of (i) – (iii) above). All notices shall be addressed as follows: 

 

			
	For Apple:	  	For OPTi:
	General Counsel	  	Chief Executive Officer
	Apple	  	OPTi Inc.
	1 Infinite Loop, 301-4GC	  	3430 W. Bayshore Road, Suite 103
	Cupertino, CA 95014	  	Palo Alto, CA 94303
	Fax: (408) 974-8530	  	Fax: (650) 213-8551
	  
 with a copy to:
	  	
	  
 Director of Patents
	  	Taras A. Gracey, Esq.
	Apple	  	Winston & Strawn LLP
	1 Infinite Loop, 36-2PAT	  	35 West Wacker Drive
	Cupertino, CA 95014	  	Chicago, IL 60601
	Fax: (408) 974-4992	  	Fax: (312) 558-5700

  

	9.0	MISCELLANEOUS. 

 9.1 OPTi
has no obligation hereunder to institute any action or suit against any third party for infringement of any of the OPTi Patents, or to defend against any action challenging the validity of the OPTi Patents. Apple has no right to institute any action
against any third party for infringement of any OPTi Patent. 
 9.2 Nothing in this Agreement is intended or shall be deemed to
constitute a partnership, agency, employer-employee, or joint venture relationship between the Parties. Neither Party shall incur any debts or make any commitments for the other. There is no fiduciary duty or special relationship of any kind between
the Parties to this Agreement. Each Party expressly disclaims any reliance on any act, word, or deed of the other Party in entering into this Agreement. 
 9.3 Nothing contained in this Agreement shall be construed as conferring any right to a license or to otherwise use any patent, patent application, trademark, service name, service mark, trade dress,
trade secret or other intellectual property belonging to Apple. 
 9.4 If any portion of this Agreement is found to be invalid,
illegal, or unenforceable for any reason, the remainder of the Agreement shall continue in force and, if needed, the Parties or a court of competent jurisdiction shall substitute suitable provisions having like economic effect and intent.

 9.5 This Agreement cannot be modified, terminated or amended in any respect orally or by conduct of the Parties. Any
termination, modification, or amendment may be made only by a writing signed by all Parties. No waiver of any provision shall be binding in any event unless executed in writing by the Party making the waiver. 

  

			
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 9.6 This Agreement may be executed in several counterparts, each of which is deemed to
be an original but all of which constitute a one and the same instrument. Electronic copies of the signatures of the Parties to this Agreement shall be treated as if they are original signatures and shall have the same legal effect as would original
signatures. 
 9.7 Each Party and counsel have reviewed and approved this Agreement, and accordingly any presumption or rule of
construction permitting ambiguities to be resolved against the drafting party shall not be employed in the interpretation or application of this Agreement. 
 9.8 The headings inserted in this Agreement are for reference only and are not intended to form any part of the operative portion of this Agreement, and they shall not be employed in the interpretation or
application of this Agreement. 
 9.9 This Agreement shall be construed, and the relationship between the Parties determined, in
accordance with the laws of California, notwithstanding any choice-of-law principle that might dictate a different governing law. 
 9.10 This Agreement sets forth the entire understanding of the Parties with respect to the OPTi Patents, and replaces any prior oral or written communications, discussions or agreements between them.

 9.11 The remedy for breach of this Agreement shall be limited to damages and/or injunctive relief, as appropriate, for breach
of contract and shall not include remedies for patent infringement. 
 9.12 EXCEPT AS PROVIDED EXPLICITLY HEREIN, IN NO EVENT
SHALL ANY PARTY BE LIABLE TO ANY OTHER PARTY OR ANY OTHER PERSON OR ENTITY (UNDER CONTRACT, STRICT LIABILITY, NEGLIGENCE, OR OTHER THEORY) FOR SPECIAL, INDIRECT, EXEMPLARY, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING LOST PROFITS, OPPORTUNITIES
OR SAVINGS, ARISING OUT OF OR RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT. 
 9.13 The Parties acknowledge and agree that
the OPTi Patents are “intellectual property” as defined in Section 101(35A) of the United States Bankruptcy Code (the “Code”), as the same may be amended from time to time, that have been licensed hereunder in a
contemporaneous exchange for value. OPTi acknowledges that if OPTi, as a debtor in possession or a trustee in bankruptcy in a case under the Code, rejects this Agreement, Apple may elect to retain its rights under this Agreement as provided in
Section 365(n) of the Code. Upon written request from Apple to OPTi or the bankruptcy trustee of OPTi’s election to proceed under Section 365(n), OPTi or the bankruptcy trustee shall comply in all respects with Section 365(n),
including, without limitation, by not interfering with the rights of Apple as provided by this Agreement. 

  

			
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 IN WITNESS WHEREOF, this Agreement has been duly executed by the Parties to be effective as of the
Effective Date. 
  

			
	APPLE INC.	  	OPTi Inc.
		
	By:         /s/ Noreen Krall            	  	By:        /s/ Bernard T. Marren            
		
	Name:   Noreen Krall                    	  	Name:  Bernard T. Marren                    
		
	Its:   Sr. Director, IP Law & Litigation    	  	Its:  President                         
               
		
	Dated:   December 6, 2010                	  	Dated:  December 6,
2010                    

  

			
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 EXHIBIT A 

 

					
	 	 	7,523,245	  	Compact ISA-bus interface
	 	 	6,567,875	  	USB data serializer
	 	 	6,405,291	  	Predictive snooping of cache memory for master-initiated accesses
	 	 	6,098,141	  	Compact ISA-bus interface
	 	 	6,029,251	  	Method and apparatus for temperature sensing
	 	 	5,974,495	  	Using a back-off signal to bridge a first bus to a second bus
	 	 	5,968,151	  	System and method of positively determining ISA cycle claiming
	 	 	5,944,807	  	Compact ISA-bus interface
	 	 	5,933,611	  	Dynamic scheduler for time multiplexed serial bus
	 	 	5,918,072	  	System for controlling variable length PCI burst data using a dummy final data phase and
adjusting the burst length during transaction
	 	 	5,907,857	  	Refresh-ahead and burst refresh preemption technique for managing DRAM in computer
system
	 	 	5,905,887	  	Clock frequency detection for computer system
	 	 	5,900,016	  	System for using a cache memory with a write-back architecture
	 	 	5,890,002	  	System and method for bus master emulation
	 	 	5,881,271	  	System and method for clock management
	 	 	5,860,113	  	System for using a dirty bit with a cache memory
	 	 	5,854,638	  	Unified memory architecture with parallel access by host and video
controller
	 	 	5,822,768	  	Dual ported memory for a unified memory architecture
	 	 	5,813,036	  	Predictive snooping of cache memory for master-initiated accesses
	 	 	5,805,905	  	Method and apparatus for arbitrating requests at two or more levels of priority using a
single request line
	 	 	5,790,831	  	VL-bus/PCI-bus bridge
	 	 	5,768,624	  	Method and apparatus for employing ping-pong buffering with one level deep buffers for
fast DRAM access
	 	 	5,710,906	  	Predictive snooping of cache memory for master-initiated accesses
	 	 	5,577,214	  	Programmable hold delay
	 	 	5,550,515	  	Multiphase clock synthesizer having a plurality of phase shifted inputs to a plurality of
phase comparators in a phase locked loop
	 	 	5,469,555	  	Adaptive write-back method and apparatus wherein the cache system operates in a
combination of write-back and write-through modes for a cache-based microprocessor system
	 	 	5,463,759	  	Adaptive write-back method and apparatus wherein the cache system operates in a
combination of write-back and write-through modes for a cache-based microprocessor system
	 	 	5,448,742	  	Method and apparatus for local memory and system bus refreshing with single-port memory
controller and rotating arbitration priority
	 	 	5,426,739	  	Local bus - I/O Bus Computer Architecture
	 	 	5,423,019	  	Automatic cache flush with readable and writable cache tag memory
	 	 	5,414,827	  	Automatic cache flush
	 	 	5,371,880	  	Bus synchronization apparatus and method
	 	 	5,309,568	  	Local bus design
	 	 	5,287,481	  	Automatic cache flush with readable and writable cache
tag memory

  

			
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