Document:

Technology License Agreement, dated December 16, 1996-Advanced RISC Machines

 Exhibit 10.31 
  
 This Technology Licence Agreement (the “Agreement”) is made the 16th day of December 1996 
  
 BETWEEN 
  
 ADVANCED RISC MACHINES LIMITED whose registered office is situated at 90, Fulbourn Road, Cherry Hinton, Cambridge CBI
4JN, England (“ARM”) 
  
 and 
  
 LG SEMICON COMPANY LIMITED whose principal place of business is
situated at 16 Woomyeon-dong. Seocho-gu. Seoul 137-140, Korea (“LGS”). 
  
 WHEREAS 
  
 LGS has
requested ARM and ARM has agreed, to license LGS to manufacture and distribute certain ARM products and thereby to make use of certain portions of the Intellectual Property (as defined below) upon the terms set out in this Agreement. 
  
 In consideration of the mutual representations, warranties, covenants, and
other terms and conditions contained herein, the parties agree as follows: 
  

	1.	Definitions 

  

	1.1	“ARM Compliant Product” shall mean any single silicon chip developed by LGS which contains, at a minimum: (i) an ARM7TDMI Core; or (ii) a Modified
ARM7TDMI Core, which has been verified in accordance with the provisions of Clause 3. 

  

	1.2	“ARM7TDMI Core” shall mean the device as described and identified in the ARM7TDMI datasheet identified in Schedule 2 Part A Item A1.

  

	1.3	“ARM Instruction Set” shall mean both the ARM Instruction Set and THUMB Instruction Set as each are defined in the ARM Architecture and Reference
Manual identified in Schedule 2 Part A Item A2. 

  

	1.4	“Authorised Distributor” shall mean those distributors appointed, in writing, by LGS. 

  

	1.5	“AVS” shall mean the ARM Architectural Validation Suite in binary code format Schedule 2 Part B Section 2 Item T3. 

  

	1.6	“Confidential Information” shall mean: (i) any trade secrets relating to the ARM7TDMI Core and Transfer Materials and the source code for any
Software; (ii) any information designated in writing by either party as confidential which if disclosed verbally is reduced to writing within thirty (30) days after its oral disclosure; and (iii) the terms and conditions of this Agreement.

  

	1.7	“Core Functional Test Vectors” shall mean the test vectors identified in Schedule 2 Part A Items B10, B11, B12 and B13. 

  

	1.8	“Design Win Event” shall mean for each different Design Win Product, the point in time of the sale, supply or other distribution of five hundred (500)
units of such product. 

  

	1.9	“Design Win Product” shall mean an application specific product made by LGS, an LG Affiliate or LG Group Company, which incorporates an ARM Compliant
Product. 

  

					
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	1.10	“Effective Date” shall mean the date of this Agreement or the date upon which the Korean Government gives approval to this Agreement, whichever is the later,
subject always to the provisions of Clause 18.4. 

  

	1.11	“Embedded ICE” shall mean the Embedded ICE Protocol Converter identified in Schedule 14. 

  

	1.12	“End User Licence” shall mean a licence agreement substantially conforming to that agreement set forth in Schedule 7. 

  

	1.13	“Half Year” shall mean each calendar half year ending the 30th June and 31st December of any year. 

  

	1.14	“HP” shall mean any Hewlett Packard compatible computer running HP-UX v9.0.5 (and later versions as may be mutually agreed). 

  

	1.15	“IBM PC” shall mean any computer. 486 (or above) processor based IBM AT architecture, having, at a minimum. 16Mb RAM. 50Mb hard disc space and running Microsoft DOS
v6.2 (and later versions as may be mutually agreed) and, where appropriate, Microsoft Windows 95 or Windows NT. ARM will use reasonable endeavours, in collaboration with LGS, to ensure the Software operates on reputable IBM PC compatible computers
provided that such operation is not constrained by significant hardware or software deficiencies. 

  

	1.16	“Intellectual Property” shall mean any patents, patent rights, trade marks, service marks, registered designs, topography or semiconductor maskwork rights,
applications for any of the foregoing, copyright, know-how, unregistered design right, confidential information, any Intellectual Property Derivatives, and any other similar protected rights in any country, which are taken into use in the design,
use or production of the ARM7TDMI Core. Software or Transfer Materials. 

  

	1.17	“Intellectual Property Derivatives” shall include: (i) for copyrightable or copyrighted material, any translation, abridgement, revision or other form in which an
existing work may be recast, transformed or adapted; (ii) for work protected by topography or mask right, any translation, abridgement, revision or other form in which an existing work may be recast, transformed or adapted; (iii) for patentable or
patented material, any improvement created by ARM; and (iv) for material protected by trade secret any new material derived from or employing such existing trade secret. 

  

	1.18	“LG Affiliate” shall mean each of the companies set forth in Schedule 10. An LG Affiliate shall cease to be an LG Affiliate when; (i) it is merged into a
corporation other than an LG Group Company; or (ii) the majority of its voting shares becomes owned or controlled by a person, company or other legal entity other than an LG Group Company; or (iii) the Chief Executive Officer (referred to in Korean
as “Hoejang”) ceases to control directly or indirectly such LG Affiliate. 

  

	1.19	“LG Group Company” shall mean each of the companies identified in Schedule 8. 

  

	1.20	“LGS Users” shall mean LGS (or any LG Group Company) when incorporating an ARM Compliant Product, distributed pursuant to this Agreement, for use in LGS’s (or
such LG Group Company’s) end user products. 

  

	1.21	“LGS Materials” shall mean such of the Transfer Materials (or any additional materials) as are necessary to enable ARM, in respect of any Modified ARM7TDMI Core, to
exercise the rights set out in Clause 2.3. 

  

	1.22	 “Models” shall mean: (i) the object code and source code of the programs identified in Schedule 3 Part A; (ii) the object code and such source code
of the programs identified in Schedule 3 Part B as may be necessary (at ARM’s absolute discretion) to allow the support of 

  

					
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subsequent releases of the specified simulator: and (iii) subject to the payment by LGS of the fee(s) set out in Clause 9.2, the object code and such source
code of the programs identified in Schedule 3 Part C as may be necessary (at ARM’s absolute discretion) to allow the support of subsequent releases of the specified simulator; together with such Updates thereof, if any, as are developed by or
for ARM. 

  

	1.23	“Modified ARM7TDMI Core” shall mean any ARM7TDMI Core modified in accordance with the provisions of Clause 2.2. 

  

	1.24	“NSP” shall mean the net sales price of any ARM Compliant Product calculated by taking the aggregate invoice price charged on arm’s length terms by LGS and its
Subsidiaries in the sale or distribution of any ARM Compliant Product, less any (i) value added, turnover, import, or other tax, duty or tariff payable thereon (ii) freight and insurance costs incurred and (iii) amounts actually repaid or credited
with respect to any ARM Compliant Products returned. 

  
 In the event that ARM, in its discretion, considers that the NSP for any ARM Compliant Product charged to LGS Users is materially below the open market value for such ARM Compliant Product, the NSP shall be deemed to be: in the case of the
sale or distribution of any ARM Compliant Product to LGS Users, the net sales price for such ARM Compliant Product sold by LGS to third parties; and in the case of the sale or distribution of ARM Compliant Products manufactured for, and supplied
solely to, LGS Users, at a minimum, the sum of: 
  

	 	(i)	the cost of materials and the cost of fabrication or such other processing of such ARM Compliant Product; and 

  

	 	(ii)	an amount for general expenses and profit equal to that usually reflected in the sales to third parties of products of the same general class or kind as the ARM Compliant Product;
and 

  

	 	(iii)	the cost of all packaging. 

  

	1.25	“PIV Card” shall mean the hardware identified in Schedule 2 Section 1 Part A as Item E1. 

  

	1.26	“Software” shall mean together the Models, Tools, Test Programs, Embedded ICE and Vectors. 

  

	1.27	“Subsidiary” shall mean any company the majority of whose voting shares is now or hereafter owned or controlled, directly or indirectly, by a party hereto or any
company a majority of whose voting shares is now or hereafter owned or controlled, directly or indirectly, by any of the aforementioned entities. A company shall be considered a Subsidiary only so long as such control exists.

  

	1.28	“Sun/SunOS” shall mean any Sun/SPARC compatible computer running SunOS v4.1.3_u1 (and later versions as may be mutually agreed). 

  

	1.29	“Test Programs” shall mean the source code and object code of the programs identified in Schedule 2 Part B Section 1 Items T1 and T2 together with such Updates, if
any, as are developed by or for ARM. 

  

	1.30	“Test Chip” shall mean a device which complies with the test chip specification set forth in Schedule 2 Part A Item D1. 

  

	1.31	“Test Chip Characterisation Vectors” shall mean those test vectors identified in Schedule 2 Part A Items D6, D7, D8 and D9. 

  

					
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	1.32	“Test Chip Functional Vectors” shall mean those test vectors identified in Schedule 2 Part A Items D4 and D5. 

  

	1.33	“Tools” shall mean the source and object code of the programs identified in Schedule 4 Parts A and B; and (ii) the documentation identified in Schedule 4 Part C,
together with such Updates, if any, as are developed by or for ARM. 

  

	1.34	“Trademarks” shall mean the trademarks, service marks and logos set forth in Schedule 5. 

  

	1.35	“Transfer Materials” shall mean that technical information with respect to the ARM7TDMI Core identified in Schedule 2 Part A. 

  

	1.36	“Updates” shall mean; (i) for the Software, any bug fixes or enhancements to the Software the incorporation of which ARM, in its absolute discretion, decides does
not cause to be created a new product; and (ii) for the Transfer Materials, all modifications, enhancements and updates to the Transfer Materials, created by ARM, including such modifications to the Transfer Materials as are made by ARM’s other
licencees and adopted by ARM for general release as an update provided that ARM may exclude any modification, enhancement or update which ARM, in its absolute discretion decides, results in the creation of a new product; 

  

	1.37	“Use” shall mean copying the programs identified in Schedule 3 Parts B and C and Schedule 4 Parts A and C onto a computer for the purposes of processing the
instructions or statements contained therein, but excluding disassembly, reverse assembly, or reverse compiling except as permitted by local legislation implementing Article 6 of the EC Software Directive and only to the extent necessary to achieve
interoperability of an independently created program with other programs. Disassembly, reverse assembly, or reverse compiling for die purpose of error correction is specifically prohibited. 

  

	1.38	“Vectors” shall mean together the Test Chip Functional Vectors and Test Chip Characterisation Vectors. 

  

	1.39	“1995 Agreement” shall mean the Technology Licence Agreement between ARM and LGS dated the 5th October 1995. 

  

	2.	Licence 

  

	2.1	In consideration of the fee (“Core Fee”) set out in Schedule 12 Part A, ARM hereby grants to LGS, under the Intellectual Property, a perpetual (subject to Clause 18),
non-transferable (subject to Clause 20.3), non-exclusive, world-wide right and licence to: 

  

	 	(i)	use, modify (subject to the provisions of Clauses 2.2 and 2.3) and copy the Transfer Materials solely for the purposes of creating, developing, manufacturing, having manufactured
(subject to the provisions of Clauses 2.4 and 2.5), and selling, supplying and distributing to any third party, ARM Compliant Products; 

  

	 	(ii)	modify, translate, reproduce and distribute, subject to the confidentiality obligations set forth in Clause 14, the documentation identified in Schedule 2 (except Item A2).

  

					
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	2.2	LGS may modify: 

  

	 	(i)	the internal logic of any ARM7TDMI Core: 

  

	 	(ii)	the layout of any ARM7TDMI Core where necessary for the purposes of manufacturing such ARM7TDMI Core on another CMOS process, 

  
 PROVIDED ALWAYS THAT the Modified ARM7TDMI Core retains compatibility with
the ARM Instruction Set. A Modified ARM7TDMI Core will be deemed compatible if the Test Chip for the Modified ARM7TDMI Core: (i) executes each and every instruction contained in the ARM Instruction Set; (ii) executes the instructions at an identical
rate of clocks per instruction as the ARM7TDMI Core from which it was derived; and (iii) runs the Vectors and the AVS. 
  

	2.3	LGS hereby grants to ARM, in respect of all modifications made to the ARM7TDMI Core (“Modifications”), a perpetual and irrevocable, royalty-free, non-transferable,
non-exclusive, world-wide right and licence to manufacture, have manufactured, modify, create derivative works of, use, sell, supply and distribute all Modifications and sub-license others to exercise similar rights with respect to such
Modifications. In pursuance of the licence to all Modifications hereby granted, LGS shall; 

  

	 	2.3.1	prior to any prototype production of the first ARM Compliant Product including any Modification, deliver to ARM, in writing, a full technical description of such proposed
Modification; and 

  

	 	2.3.2	within thirty (30) days of the first shipment of the first ARM Compliant Product including any Modification, deliver to ARM the LGS Materials for such ARM Compliant Product
including the Modification. 

  
 For the avoidance
of doubt, nothing in this Clause 2.3 shall be construed as granting to ARM any right or licence to any peripheral devices owned by LGS which are integrated around the ARM7TDMI Core. 
  
 ARM shall notify LGS in the event that ARM incorporates any Modification in any general update to or general release of the
ARM7TDMI Core. 
  

	2.4	LGS may exercise its right to have manufactured ARM Compliant Products provided that: 

  

	 	(i)	LGS notifies ARM of the identity of LGS’s subcontracted manufacturer (“Manufacturer”) not less than thirty (30) days prior to first prototype production by the
Manufacturer; and 

  

	 	(ii)	LGS ensures that any Manufacturer agrees (i) to be bound by the same obligations of confidentiality as are contained in this Agreement and (ii) to supply The ARM Compliant Products
solely to LGS. 

  
 In the event that any
Manufacturer breaches the provisions referred to in this Clause 2.4, LGS agrees that such breach shall be treated as a material breach of this Agreement by LGS which is incapable of remedy. Further LGS hereby undertakes to keep ARM indemnified
against all and any loss, liability, costs, damages, expenses (including the fees of lawyers and other professionals), suffered, incurred or sustained as a result of or in relation to such breach. 
  
 For the avoidance of doubt, in the event that LGS subcontracts only the
packaging of ARM Compliant Products to a third party, LGS shall be released from the obligations of this Clause 2.4. 
  

					
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	2.5	In the event that LGS subcontracts the packaging of ARM Compliant Products, LGS shall 

  

	 	(i)	ensure that the packaging company agrees to supply the ARM Compliant Products solely to LGS; and 

  

	 	(ii)	undertake to keep ARM indemnified against all and any loss, liability, costs, damages, expenses (including the fees of lawyers and other professionals), suffered, incurred or
sustained as a result of or in relation to the breach of the provisions of Clause 2.5(i). 

  

	2.6	For the avoidance of doubt, no right is granted to LGS to: 

  

	 	(i)	sublicense the rights licensed to LGS pursuant to Clause 2.1; 

  

	 	(ii)	distribute any ARM Compliant Product prior to verification in accordance with Clause 3 except that in the event that it is the intention of LGS, and LGS do proceed, to verify a
device in accordance with Clause 3, LGS may distribute a maximum of one hundred (100) prototype units of such device without having verified such device. 

  

	2.7	Save as licensed in Clause 2.1, LGS acquires no right, title or interest in the ARM7TDMI Core or Transfer Materials and Intellectual Property. In no event shall the licence grant
set forth in Clause 2.1 be construed as granting LGS, expressly or by implication, estoppel or otherwise, a licence to use any ARM technology or intellectual property other than that pertaining to the ARM7TDMI Core. 

  

	2.8	During the term of this Agreement, LGS may exercise the right to include any Subsidiary as a licence of ARM provided that: 

  

	 	(i)	such Subsidiary agrees in writing, as set forth in Schedule 1, to be bound by the obligations of LGS and to comply with all the terms and conditions of this Agreement LGS shall
deliver to ARM a copy of the Subsidiary’s undertaking within thirty (30) days of the execution of such undertaking: 

  

	 	(ii)	any breach of the terms and conditions of this Agreement by a Subsidiary shall constitute a breach of this Agreement by LGS; 

  

	 	(iii)	any termination of this Agreement as provided by Clause 18 shall be effective in respect of all Subsidiaries; 

  

	 	(iv)	any licence, granted in accordance with the provisions of this Clause 2.8, shall automatically terminate upon any Subsidiary ceasing to be a Subsidiary. 

  

	2.9	During the term of this Agreement LGS may exercise the right to include any LG Affiliate as a Licence of ARM provided that: 

  

	 	(i)	such LG Affiliate agrees in writing, as set forth in Schedule 11, to be bound by the obligations of LGS and to comply with all the terms and conditions of this Agreement LGS shall
deliver to ARM a copy of the LG Affiliate’s undertaking within thirty (30) days of the execution of such undertaking; 

  

	 	(ii)	any breach of the terms and conditions of this Agreement by a LG Affiliate shall constitute a breach of this Agreement by LGS; 

  

	 	(iii)	any termination of this Agreement as provided by Clause 18 shall be effective in respect of all LG Affiliates; 

  

					
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	 	(iv)	any licence, granted in accordance with the provisions of this Clause 2.9, shall automatically terminate upon any LG Affiliate ceasing to be a member of the LG Group.

  

	3.	Verification of ARM Compliant Products 

  

	3.1	LGS shall manufacture and characterise a Test Chip for the ARM7TDMI Core and any Modified ARM7TDMI Core. 

  

	3.2	LGS shall: 

  

	 	(i)	run the Vectors, in the appropriate format, on the Test Chip and deliver to ARM, a copy of the log (“the Log Results”) generated by running the Vectors together with five
(5) samples of the Test Chip: and 

  

	 	(ii)	run the AVS on the Test Chip (by means of a PIV Card) and deliver to ARM a copy of the log (“the AVS Results”) generated by running the AVS. 

  
 ARM may, at ARM’S discretion, exercise the right to run the Vectors
and/or AVS on the Test Chip. 
  

	3.3	The ARM7TDMI Core shall be verified upon: 

  

	 	(i)	ARM’S acceptance, of the Log Results either; (a) delivered by LGS; or (b) generated by ARM. The Log Results shall be accepted when they indicate that no errors have been
detected or where any errors detected have been jointly agreed, in good faith, and a waiver agreed between the parties: and 

  

	 	(ii)	ARM’s acceptance of the AVS Results either; (a) delivered by LGS; or (b) generated by ARM. The AVS Results shall be accepted when they indicate that no differences have been
detected between the AVS Results and the AVS reference file supplied by ARM or where any errors detected have been jointly agreed, in good faith, and a waiver agreed between the parties. 

  
 ARM shall notify LGS, in writing, within thirty (30) days of delivery by LGS
of the Log Results and Test Chip samples to ARM (the “Verification Period”), whether the Test Chip has been verified or has failed the verification process. In the event that the Test Chip fails the verification process, ARM shall provide
details of the errors which cause the failure to LGS and LGS shall endeavour to correct the errors. The parties shall repeat the above process until either: (i) the Test Chip is verified; or (ii) LGS withdraws the Test Chip from the verification
process. In the event that ARM fails to notify LGS of the result of the verification process within the Verification Period, the Test Chip subject to the verification process shall be deemed verified. 
  

	3.4	Provided that: (a) the Test Chip has been verified in accordance with the provisions of Clause 3.2; and (b) the ARM Compliant Product containing the ARM Core contained in such Test
Chip runs the Core Functional Test Vectors and they indicate that no errors have been detected (or where any errors detected have been jointly agreed, in good faith, and a waiver agreed between the parties), LGS may distribute such ARM Compliant
Product without further verification. 

  

	3.5	LGS shall provide to ARM. free of charge, within thirty (30) days of verification in accordance with Clause 3.2, fifty (50) samples of each Test Chip manufactured by LGS on each
process utilised for such manufacture, so that ARM, at its option, may test the compatibility of each Test Chip. For the avoidance of doubt, there shall be no restriction on ARM’s use of such samples provided that ARM shall not reverse engineer
any Test Chips provided by LGS under this Clause 3. 

  

					
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	4.	Models Licence 

  

	4.1	In consideration of the fee (“Models Fee”) set out in Schedule 12 Part K, ARM hereby grants to LGS a non-transferable (subject to Clause 20.3), non-exclusive, world-wide
right and licence under the Intellectual Property, to; 

  

	 	(i)	reproduce and use, internally and for third party support purposes, the Models and relevant documentation; 

  

	 	(ii)	reproduce and distribute, and sub-license (provided that the end user agrees to be bound by the End User Licence) the Use of the object code of the Models (excluding the Model
identified in Schedule 3 Part A); 

  

	 	(iii)	modify, reproduce, use and distribute, in connection with the Models (excluding the Model identified in Schedule 3 Part A), the documentation (including any modified documentation)
relevant thereto. 

  

	 	(iv)	sub-license the distribution rights granted to LGS under Clauses 4.1(ii) and (iii) to Authorised Distributors only. 

  

	4.2	For the avoidance of doubt, except as provided by Clause 4.1(iv), no right is granted to LGS to sub-license the right to sell, supply or otherwise distribute the Models.

  

	5.	Tools Licence 

  

	5.1	In consideration of the Fees set out in Schedule 12 Part L. ARM hereby grants, to LGS, a non-transferable (subject to Clause 20.3), non-exclusive, world-wide right and licence under
the Intellectual Property, to; 

  

	 	(i)	modify the Tools and related documentation identified in Schedule 4 solely for the purpose of providing Hangul language support and incorporating any LGS logo;

  

	 	(ii)	copy and use the Tools and related documentation identified in Schedule 4 (and any modified versions thereof created under the provisions of Clause 5.1(i)), internally only.

  

	5.2	If, within the period of two (2) years from the Effective Date LGS exercises any of the following options; 

  
 Option 1: payment of the fees (“Tools Distribution Option Fee 1”)
set out in Schedule 12 Part H; or 
  
 Option 2: payment of the
fees (“Tools Distribution Option Fee 2”) set out in Schedule 12 Part I; or 
  
 Option 3: payment of the fees (“Tools Distribution Option Fee 3”) set out in Schedule 12 Part J. 
  
 The licence to the Tools provided in Clause 5.1 shall be extended to include the following rights: 
  

	 	(i)	copy and distribute and sub-license (provided that the end user agrees to be bound by the End User Licence) the Use of the object code of the Tools identified in Schedule 4 Part A
and Schedule 4 Part C; 

  

					
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	 	(ii)	copy and distribute, and sub-license (provided that the end user agrees to be bound by the End User Licence) the use of the Tools identified in Schedule 4 Part B (including the
Tools modified in accordance with Clause 5.1(ii)); 

  

	 	(iii)	modify, copy, use and distribute the Tools documentation identified in Schedule 4 Part D (including any modified Tools documentation); 

  

	 	(iv)	sub-license the distribution rights granted to LGS under Clauses 5.2 (i)-(iii) to Authorised Distributors only. 

  

	5.3	For the avoidance of doubt, except as provided by Clause 5.2(iv), no right is granted to LGS to sub-license the right to sell, supply or otherwise distribute the Tools.

  

	5A.	Embedded ICE Licence 

  

	5A.1	In consideration of the fees paid by LGS to ARM as set out in Schedule 12 Part C. ARM hereby grants to LGS a non-transferable (subject to Clause 20.3), non-exclusive, world-wide
licence under the Intellectual Property to; 

  

	 	(i)	use copy and modify the Embedded ICE, internally and for third party support purposes; 

  

	 	(ii)	copy and distribute and sub-license (provided that the end user agrees to be bound by the End User Licence) the Use of the binary code derived from the source code for the Embedded
ICE (together with any modified versions thereof created under the provisions of Clause 5A.1(i)) of the Embedded ICE. 

  

	5B.	PID7T Configurable Device Programs Licence 

  

	5B.1	ARM hereby grants to LGS a non-transferable (subject to Clause 20.3), non-exclusive, world-wide licence under the Intellectual Property to; 

  

	 	(i)	use copy and modify the PID7T Configurable Device Programs identified in Schedule 15 Part B, internally and for third party support purposes. 

  

	6.	Verification and Test Licence 

  

	6.1	In consideration of the fees (“Core Fees”) paid by LGS to ARM as set out in Schedule 12 Part A. ARM hereby grants to LGS a non-transferable (subject to Clause 20.3),
nonexclusive, world-wide right and licence under the Intellectual Property, to copy, modify (subject to the provisions of Clause 6.2) and use internally only, the Test Programs and associated documentation. 

  

	6.2	LGS may modify the Test Programs provided that; 

  

	 	(i)	the Test Programs exhibit the same functionality after modification as they did prior to modification; and 

  

	 	(ii)	LGS shall, upon request, from ARM, deliver, to ARM, the source code for such modified Test Programs and a file of the test patterns generated using such modified Test Programs.

  

	6.3	ARM hereby grants, to LGS, a non-transferable (subject to Clause 20.3), non-exclusive, world-wide right and licence under the ARM’s Intellectual Property rights, to copy and
use internally only, the AVS. 

  

					
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	6.4	ARM hereby grants, to LGS a non-transferable (subject to Clause 20.3), non-exclusive, world-wide right and licence under the ARM’s Intellectual Property rights, to copy,
translate into different formats and use, and distribute (subject to the conditions attaching to limited confidential information described in Clause 14.2) solely for the purpose of testing ARM Compliant Products, the Vectors and Core Functional
Vectors. 

  

	7.	Ownership of the Software 

  

	7.1	In no event shall the licence grants set forth in Clauses 4.1. 5.1, 5A.1 and 6.l be construed as granting LGS, expressly or by implication, estoppel or otherwise, a licence under
any ARM technology other than the Software and related documentation. 

  

	7.2	Except as licensed to LGS in Clauses 4.1. 5.1. 5A.1 and 6.1 all right, title and interest in and to the Software and related documentation shall remain vested in ARM.

  

	7.3	LGS shall reproduce and not remove or obscure any notice incorporated in the Software or related documentation by ARM to protect ARM’s Intellectual Property Rights or to
acknowledge the copyright and/or contribution of any third party developer. LGS shall incorporate corresponding notices and/or such other markings and notifications as ARM may reasonably require on all copies of Software and related documentation
used or distributed by LGS. 

  

	8.	Trademark Licence 

  

	8.1	ARM hereby grants to LGS a non-transferable (subject to Clause 20.3), non-exclusive, royalty-free, world-wide right and licence under ARM’s Intellectual Property rights, to use
the Trademarks in the promotion and sale of ARM Compliant Products. 

  

	8.2	LGS shall use the Trademarks, in accordance with ARM’s guidelines set forth in Schedule 5 (the “Guidelines”), on (i) all ARM Compliant Products sold or distributed by
LGS and (ii) all documentation, promotional materials and software associated with such ARM Compliant Products. ARM shall have the right to revise Schedule 5 and the Guidelines (including the right to add further trademarks or modify the Trademarks)
provided that such revisions are made in respect of the Guidelines issued to all licencees of the Trademarks. Any such revisions shall be effective, upon ninety (90) days written notice to LGS. 

  

	8.3	LGS shall be released from the provisions of Clause 8.2 in the case of any ARM Compliant Product, created or developed by LGS, solely for a specific customer of LGS provided that;
(a) the customer has notified LGS, in writing, that the customer wishes the ARM Compliant Product packaging not to bear any Trademark; and (b) the ARM Compliant Product does not bear the LGS name or trademark. 

  

	8.4	LGS shall submit samples of documentation, packaging, and promotional or advertising materials bearing the Trademarks to ARM from time to time in order that ARM may verity
compliance with the Guidelines. In the event that any documentation, packaging, promotional or advertising material fails to comply with the Guidelines, ARM shall notify LGS and LGS shall rectify such documentation, packaging, and promotional or
advertising materials so as to comply with the Guidelines and cease using any such non-compliant materials within thirty (30) days of the date of ARM’s notice. Any documentation, packaging, and promotional or advertising materials not rejected
for failing to comply with the Guidelines by ARM within thirty (30) days after delivery to ARM shall be deemed approved. 

  

					
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	8.5	LGS agrees to assist ARM in maintaining the validity of the Trademarks by retaining a record of its use of the Trademarks. Such records shall include samples of the use of each of
the Trademarks as well as information regarding the first use of the Trademarks in each country. Upon request, LGS shall make available all such records. 

  

	8.6	Except as provided by the terms of this Agreement, LGS shall not use or register any trademark, service mark, device or logo, any of the Trademarks or any word or mark confusingly
similar to any of the Trademarks in any jurisdiction. 

  

	9.	Licence Fees and Royalties 

  

	9.1	In consideration of the licences granted to the Transfer Materials and the delivery of the Transfer Materials to LGS under this Agreement, LGS shall pay the fees (“Core
Fees”) set out in Schedule 12 Part A. 

  

	9.1A 	In consideration of the delivery of the PID7T cards and Embedded ICE protocol converters (identified in Schedule 15) to LGS under this Agreement, LGS shall pay the fee (“PID
Fee”) set out in Schedule 12 Part M. 

  

	9.2	For each ARM Compliant Product sold, supplied or distributed by LGS. LGS shall pay a royalty (“Running Royalty.”) calculated in accordance with the provisions of Schedule
13. 

  

	9.3	For the period of five years from the Effective Date (“Design Win Period”). LGS shall pay a non-refundable fee (“Design Win Fee”), as set out in Schedule 12 Part
G, upon each Design Win Event up to a maximum of eight (8) Design Win Fees (except no Design Win Fee shall be payable on the first Design Win Event). No Design Win Fees shall be payable after the Design Win Period and LGS shall not manipulate the
sale, supply or other distribution of any Design Win Product to avoid the payment of a Design Win Fee. 

  

	9.3A 	After a period of ten (10) years from the first commercial shipment of the first manufactured ARM Compliant Product under this Agreement (the “Initial Period”), LGS shall
be entitled to either; (i) require ARM to enter into good faith negotiations to revise the Running Royalty rates for the remainder of the term of this Agreement; or (ii) require ARM to enter into good faith negotiations to agree a sum payable by LGS
to ARM in lieu of the Running Royalties which would otherwise fall due in accordance with the provisions of Clause 9.2. LGS shall exercise its rights under this Clause 9.3A upon written notice to ARM referring to this Clause 9.3A, served not less
that six (6) months prior to the expiry of the Initial Period. For the avoidance of doubt, in the event that; 

  

	 	(i)	LGS fails to serve any notice in accordance with the provisions of Clause 9.3, the rights set forth in Clause 9.3A shall lapse; or 

  

	 	(ii)	the parties fail to reach agreement prior to the expiry of the Initial Period and LGS does not terminate this Agreement, LGS shall continue to pay the Running Royalties in
accordance with the provisions of Clause 9.2. 

  

	9.4	In no event shall any Fee or Design Win Fee be construed as being an advance payment of Running Royalties and no right of set off of Running Royalties against any Fee or Royalty Fee
paid to ARM, by LGS, shall exist. LGS shall not manipulate distribution of ARM Compliant Products between LGS Subsidiaries for the purpose of avoiding payment of Running Royalties at a higher rate than would have been the case if such manipulation
had not taken place. 

  

					
	 	  	Page 11	  	 

	9.5	In consideration of the Embedded ICE licence under Clause 5A, LGS shall pay to ARM a fee (“Embedded ICE Fee”), as set out in Schedule 12 Part C, and for each
microprocessor development system created by LGS which incorporates the Embedded ICE (or a modified version thereof created under the provisions of Clause 5A.1(i) a further fee (“Embedded ICE Royalty”) as set out in Schedule 12 Part C.

  

	9.6	Upon giving written notice to ARM referring to this Clause 9.6, together with payment, to ARM of the option fee set out in Schedule 12 Part B, for a limited period of three (3)
years from the Effective Date, LGS may extend the licence contained in Clause 4 hereof, so as to include any of the simulator specific models specified in Schedule 3 Part C. 

  

	9.7	In consideration of the Core maintenance services provided under Clause 12 and the training provided under Clause 13A, LGS shall pay, to ARM the fee (“Core Maintenance
Fee”) set out in Schedule 12 Part D. 

  

	9.8	In consideration of the Software maintenance services provided under Clause 13, LGS shall pay, to ARM the fee (“Software Maintenance Fee”) set out in Schedule 12 Part E.

  

	9.9	LGS shall keep all records of account as are necessary to demonstrate compliance with its obligations under this Clause 9. 

  

	9.10	ARM shall have the right for representatives of a firm of independent Chartered Accountants to which LGS shall not unreasonably object (“Auditors’”), to make an
examination and audit by prior appointment during normal business hours, not more frequently than once annually, of all records and accounts as may under recognised accounting practices contain information bearing upon (i) the number of chips and
the NSP of ARM Compliant Products sold or distributed by LGS under this Agreement and (ii) the amounts of Running Royalties payable to ARM under this Clause 9. The Auditors will report to ARM only upon whether the Running Royalties paid to ARM by
LGS were or were not correct, and if incorrect, what are the correct amounts for the Running Royalties. LGS shall be supplied with a copy of or sufficient extracts from any report prepared by the Auditors. The Auditors report shall (in the absence
of clerical or manifest error) be final and binding on the parties. Such audit shall be at ARM’s expense unless it reveals an underpayment of Running Royalties of five per cent (5%) or more, in which case LGS shall reimburse ARM for the costs
of such audit. LGS shall make good any underpayment of royalties forthwith. If the audit identifies that LGS has made an overpayment, such overpayment will be credited to the next such payment or payments to be made by LGS. 

 

	9.11	Any income or other tax which LGS is required by law to pay or withhold on behalf of ARM with respect to any licence fees and/or royalties payable to ARM under this Agreement shall
be deducted from the amount of such licence fees and/or royalties otherwise due provided, however, that in regard to any such deduction, LGS shall give to ARM such assistance as may be necessary to enable or assist ARM to claim exemption therefrom,
or credit therefor, and shall upon request furnish to ARM such certificates and other evidence of deduction and payment thereof as ARM may properly require. 

  

	9.12	Any Running Royalties due to ARM under this Agreement shall be paid in accordance with the terms set forth in Schedule 6 Part B. All other sums shall be due, to ARM, in accordance
with the provisions of Schedule 12 and shall be paid within thirty (30) days of the date of ARM’s invoice therefor except that in the case of the Core Fee [*****] shall be paid within thirty (30) days of the date of ARM’s invoice therefor
and [*****] shall be paid within ninety (90) days of the date of ARM’s invoice therefor. 

  
 [*****] - Portions of this exhibit are subject to a request for confidential treatment and have been redacted and filed separately with the Securities and Exchange Commission. 
  

					
	 	  	Page 12	  	 

	9.13	If any sum due under this Agreement is not paid within thirty (30) days of receipt of the invoice therefor, then (without prejudice to ARM’s other rights and remedies) ARM
reserves the right to charge interest on such sum on a day to day basis (as well after as before any judgement) from the date from which payment was due to the date of payment at the rate of five (5) per cent per annum above the base rate of
Barclays Bank PLC from time to time in force. 

  

	10.	Delivery, Acceptance and Production Costs 

  

	10.1	In consideration of the payment to ARM by LGS of the fee (“Design Transfer Fee”) set out in Schedule 12 Part F. ARM shall port and deliver to LGS database CD in respect of
the ARM7TDMI Core which conform to the LGS 0.35 micron ASIC Design Rules Version 2 (Aug 19th 1996). In the event that LGS delivers a later set of rules ARM shall review and if the amount of work involved is substantially different then ARM and LGS
shall mutually agree an alternative course of action. 

  

	10.2	ARM shall deliver any deliverables due to LGS under the provisions of this Agreement in accordance with the delivery schedule set forth in Schedule 9. 

  

	10.3	Unless otherwise agreed in writing, delivery: 

  

	 	(i)	by LGS, shall take place at Advanced RISC Machines Limited 90 Fulbourn Road, Cherry Hinton, Cambridge CB1 4JN. England marked for the attention of the Engineering Director;

  

	 	(ii)	by ARM, shall take place at 16 Woomyeon-dong, Seocho-gu, Seoul 137-140. Korea marked for the attention of Mr Jay H. Kim. 

  

	10.4	ARM shall not be responsible under the terms of this Agreement for any recoverable or non-recoverable costs incurred directly or indirectly, by LGS in the design translation,
processing, or manufacture of masks and prototypes characterisation or manufacture of production quality silicon in whatever quantity. 

  

	11.	Contract Administrators 

  

	11.1	The parties hereby appoint the following individuals as their respective contract administrators between ARM and LGS with respect to this Agreement: 

  

			
	ARM:	 	LGS:
		
	For legal notices:	 	 
		
	 David N MacKay
 VP of Strategic Alliances
 Advanced RISC Machines Limited
 90, Fulbourn Road
 Cherry Hinton
 Cambridge
 CBl 4JN
 England
	 	 Jong-Taek Hong
 General Manager Legal Affairs
Department
 LG Semicon Co Limited
 891 Daechi-dong
 Kangnam-ku
 Seoul
 Korea

  

					
	 	  	Page 13	  	 

			
	 For corporate issues:
	  	 
		
	 James S Urquhart
 VP of Sales and Marketing
 Advanced RISC Machines Limited
 90, Fulbourn Road
 Cherry Hinton
 Cambridge
 CB1 4JN
 England
	  	 Mr. Young-Pyo Bae
 Managing Director
 LG Semicon Co Limited
 891 Daechi-dong
 Kangnam-ku
 Seoul
 Korea

		
	 For Confidential Information:
	  	 
		
	 Bryn Parry
 Business Unit Manager
 At the address set forth above
	  	 Mr. Jay H. Kim
 Group Leader MD 8
 At the address set forth above

		
	 For financial issues:
	  	 
		
	 Angela Au
 Financial Controller
 At the address set forth above
	  	 Mr. K K. Kang
 General Manager
 At the address set forth above

		
	 For applications support:
	  	 
		
	 Bryn Parry
 Business Unit Manager
 At the address set forth above
	  	 Mr. Jay H. Kim
 Group Leader MD 8
 At the address set forth above

		
	 For software support:
	  	 
		
	 Bryn Parry
 Business Unit Manager
 At the address set forth above
	  	 Mr. Jay H. Kim
 Group Leader MD 8
 At the address set forth above

  

	11.2	The contract administrators identified herein are appointed by the parties for the receipt and dispatch on their behalf of all communications relating to the administrators’
above designated areas of responsibility. The contract administrators shall also be responsible for the good progress of the parties’ performance under this Agreement and the timely resolution of all technical, administrative and commercial
issues which may arise from time to time during the execution of this Agreement. 

  

	11.3	Each party reserves the right to change its appointment as above upon seven (7) days written notice to the other party’s then current corresponding liaison.

  

	12.	Core Maintenance Services 

  

	12.1	In consideration of the payment of the Core Maintenance Fee to ARM, by LGS, ARM shall provide, to LGS, in respect of the ARM7TDMI Core through the parties’ applicable contract
administrator, the following maintenance services; 

  

	 	(i)	 the correction, to the extent reasonably possible, of any defects in any ARM7TDMI Core which cause such ARM7TDMI Core not to operate in accordance with the
functionality described in the applicable documentation. If ARM determines that such defects are due to errors in such description, ARM shall promptly issue corrections to the applicable documentation and shall not be required to correct the 

  

					
	 	  	Page 14	  	 

	 	 
Transfer Materials provided that LGS is not thereby prevented from commercially exploiting such ARM7TDMI Core. 

  

	 	(ii)	reasonable telephone and written consultation pertaining to the operation and application of the ARM7TDMI Core; 

  

	 	(iii)	any bug-fixes or corrections to the ARM7TDMI Core made available by ARM to any third party; 

  

	 	(iv)	all Updates to the ARM7TDMI Core; 

  

	 	(v)	the provision of ARM-related training; 

  
 The services provided under Clauses 12.1(ii), 12.1(v) and 13.1(ii) shall together be limited to a total of thirty (30) man days per annum. 
  

	12.2	Upon LGS requesting ARM’S assistance pursuant to the provisions of Clause 12.1, LGS shall promptly provide to ARM such samples and technical information as ARM may reasonably
require to enable ARM to provide such assistance. 

  

	12.3	In notifying ARM of any defects or problems LGS shall use a format and medium reasonably requested by ARM. Notwithstanding the foregoing, LGS shall provide ARM promptly with any
information or assistance reasonably requested by ARM to enable ARM to provide the maintenance service hereunder. 

  

	12.4	The maintenance services shall be provided at ARM’s UK premises. Nevertheless, ARM will use reasonable efforts to provide maintenance services to LGS, at LGS’s premises,
subject to LGS meeting all reasonable travelling, accommodation and sustenance expenses. 

  

	12.5	For the avoidance of doubt, ARM’s obligation under this Clause 12 is limited expressly to the provision of the maintenance services to LGS and ARM shall be under no obligation
to provide the maintenance services to LGS’s customers. 

  

	13.	Software Maintenance Services 

  

	13.1	In consideration of the payment of the Software Maintenance Fee to ARM, by LGS, ARM shall provide to LGS, in respect of the Software, through the parties’ applicable contract
administrator, the following maintenance services: 

  

	 	(i)	to correct, to the extent reasonably possible, any defects in the Software which cause the Software not to operate in accordance with the description of the Software’s function
in the applicable documentation. If ARM determines that such defects are due to errors in such description, ARM shall promptly issue corrections to the documentation and shall not be required to alter the Software provided that LGS is not thereby
prevented from commercially exploiting the Software. 

  

	 	(ii)	to provide reasonable telephone and written consultation pertaining to the operation and application of the Software. 

  

	 	(iii)	to provide as available Updates to the Software. 

  

	13.2	In notifying ARM of any defects or problems LGS shall use a format reasonably requested by ARM. LGS shall provide ARM promptly with any information or assistance reasonably
requested by ARM to enable ARM to provide the maintenance service hereunder. 

  

	13.3	For the avoidance of doubt, ARM’s obligation under this Clause 13 is limited expressly to the provision of the Software maintenance services to LGS and ARM shall be under no
obligation to provide the maintenance services to LGS’s sub-licensees of the Software. 

  

					
	 	  	Page 15	  	 

	13A.	Training 

  

	I3A.1 	In consideration of the Fees see out in Schedule 12 Part D. ARM shall provide, on reasonable notice, at ARM’s premises in Cambridge, up to four (4) weeks of support for up to
two (2) LGS personnel in relation to building the Test Chip and use of the Embedded ICE. 

  

	14.	Confidentiality 

  

	14.1	Save as provided by Clause 14.2, each party shall maintain in confidence the Confidential Information disclosed by the other party and apply security measures no less stringent than
the measures that such party applies to protect its own like information, but not less than a reasonable degree of care, to prevent unauthorised disclosure and use of the Confidential Information. The period of confidentiality shall be (i)
indefinite with respect to the terms of this Agreement, pattern generation tapes and photomasks and (ii) twenty (20) years with respect to all other information. 

  

	14.2	In the event that either party qualifies the confidentiality of any Confidential Information in writing by marking such Confidential Information with the words “Limited
Confidentiality”, such Confidential Information may be disclosed to a third party who has entered into a non disclosure agreement (“NDA”) with the recipient containing substantially similar terms to this Clause 14. A NDA in respect of
the disclosure of business Confidential Information may be limited in duration to a period of not less than three (3) years from the date of disclosure. A NDA in respect of the disclosure of technical Confidential Information may be limited in
duration to a period of not less than five (5) years from the date of disclosure. 

  

	14.3	The provisions of this clause shall not apply to information which:- 

  

	 	(i)	is known and has been reduced to tangible form by the receiving party prior to disclosure by the other party; or 

  

	 	(ii)	is, or becomes through no fault of the receiving party, generally known; or 

  

	 	(iii)	is disclosed to the receiving parry by a third party having the lawful right to make such disclosure; or 

  

	 	(iv)	is independently conceived by the receiving party provided that the receiving party is able to provide evidence of such independent conception in the form of written records; or

  

	 	(v)	is released to the receiving party for disclosure to any third party, other than on a confidential basis, by the disclosing party in writing; or 

  

	 	(vi)	as required by any court or other governmental body. 

  

	14.4	For the avoidance of doubt, LGS Royalty Reports may be disclosed to, in confidence, ARM’s financial and/or legal advisors. In addition, ARM may disclose the total unit sales of
ARM Compliant Products. 

  

	14.5	The parties agree that the disclosure of Confidential Information to a party hereunder shall be co-ordinated through the appointed contract administrators identified for such
purpose in Clause 11.1. 

  

					
	 	  	Page 16	  	 

	15.	Warranties 

  

	15.1	ARM warrants that the materials delivered to LGS will be sufficient for a competent semiconductor manufacturer to produce an ARM7TDMI Core which meets the functionality specified in
the ARM Datasheet Doc. No. ARM DDI 0029E. LGS’s sole and exclusive remedy for any breach of such warranty shall be for ARM to correct any errors in the materials and deliver such corrected materials to LGS or replace the materials at ARM’s
discretion. 

  

	15.2	LGS acknowledges that the Software cannot be tested in every possible operation, and accordingly ARM does not warrant that the Software will be free from all defects or that there
will be no interruption in its use. However, ARM warrants that the Software will be complete and comply with the description of its functionality specified in the documentation. LGS’s sole and exclusive remedy for any breach of such warranty
shall be for ARM, as soon as is reasonably practicable, to correct any errors in the Software and deliver such corrected Software to LGS. 

  

	15.3	ARM further warrants that to ARM’s knowledge and belief, but expressly without having undertaken any searches for prior art, that: 

  

	 	(i)	the ARM7TDMI Core, and Software do not infringe any third party copyright, maskwork right or trade secret; and 

  

	 	(ii)	there are no pending claims that have been made, or actions commenced, against ARM for breach of any third party copyright, maskwork right, patent or trade secret; and

  

	 	(iii)	ARM, or its applicable licensor, is the owner of the properties to be delivered to LGS; and 

  

	 	(iv)	ARM has the right to enter into the Agreement. 

  

	15.4	Except as expressly provided in this Agreement, the ARM7TDMI Core. Software, Intellectual Property, and Transfer Materials are licensed “as is” and ARM makes no warranties
express, implied or statutory, including, without limitation, the implied warranties of merchantability or fitness for a particular purpose with respect to the ARM7TDMI Core, Software, Intellectual Property and Transfer Materials.

  

	15.5	LGS warrants that LGS shall: 

  

	 	(i)	submit this Agreement for approval by the Korean Government forthwith upon signature by the parties; and 

  

	 	(ii)	use all reasonable endeavours to obtain all or any tax exemption or tax credits applicable to the technology licensed and monies payable under this Agreement.

  

	16.	Infringement 

  

	16.1	 Each party (the “Delivering Party”) will support the other party (the “Receiving Party”) in any action based on a claim that the materials
delivered by the Delivering Party to the Receiving Party under this Agreement (the “Delivered Materials”), when used in accordance with this Agreement, infringe any patent, copyright or trade secret provided that the Receiving Party shall
notify the Delivering Party promptly in writing of each such suit. However, a party shall not be obliged to support the other party in any action based upon an infringement or alleged infringement of any patent, copyright, trade secret, mask work,
trademark or other property right by; (a) the Receiving Party’s manufacturing process; (b) any modification of the Delivered Materials not made by the Delivering Party; or (c) the use of 

  

					
	 	  	Page 17	  	 

	 	 
the Delivered Materials in combination with other equipment, technology or software not purchased or licensed from the Delivering Party, provided that such
claim would not have occurred but for such combination, modification or enhancement. 

  

	16.2	The Receiving Party will support the Delivering Party in any action based on a claim that (a) the process used by or on behalf of the Receiving Party in manufacturing products
incorporating, embodying or based upon the Delivered Materials, (b) any modification of the Delivered Materials made by or on behalf of the Receiving Party, or (c) the use of the Delivered Materials in combination with other equipment, software or
technology not purchased or licensed from the Delivering Party, provided that such claim would not have occurred but for such combination, modification or enhancement, has infringed any patent, copyright or trade secret provided that the Delivering
Party shall notify the Receiving Party promptly in writing of such suits. 

  

	16.3	If any Delivered Materials provided to LGS by ARM, or any portion thereof, is finally adjudged to infringe a patent or copyright, ARM shall, at ARM’s election, use its
reasonable efforts to; (a) procure the right to continue using the unmodified Delivered Materials; (b) modify the Delivered Materials so that they become non-infringing; (c) replace the unmodified Delivered Materials, or infringing portions thereof,
with reasonably equivalent non-infringing products; or (d) pay compensatory damages to LGS, subject to the limitations of Clause 16.6. The provisions of this Clause 16.3 do not extend to any suit based upon an infringement or alleged infringement of
any patent, copyright, trade secret, mask work, trademark or other property right by; (a) the LGS manufacturing process; (b) any modification of the Delivered Materials not made by ARM; or (c) the use of the Delivered Materials in combination with
other equipment, technology or software not purchased or licensed from ARM, provided that such claim would not have occurred but for such combination, modification or enhancement. 

  

	16.4	If any Delivered Materials provided to ARM by LGS, or any portion thereof, is finally adjudged to infringe a patent or copyright. LGS shall, at LGS’s election, use its
reasonable efforts to; (a) procure the right to continue using the unmodified Delivered Materials; (b) modify the Delivered Materials so that they become non-infringing; (c) replace the unmodified Delivered Materials, or infringing portions thereof,
with reasonably equivalent non-infringing products; or (d) pay compensatory damages to ARM subject to the limitations of Clause 16.6. The provisions of this Clause 16.4 do not extend to any suit based upon an infringement or alleged infringement of
any patent, copyright, trade secret, mask work, trademark or other property right by any modification of the Delivered Materials not made by LGS. 

  

	16.5	In the event that there is a final adjudication of infringement, the liability of the Delivering Party for such infringement shall terminate with respect to all damages regarding
the infringing intellectual property arising after the date of such final adjudication. 

  

	16.6	THE FOREGOING STATES THE ENTIRE LIABILITY OF THE PARTIES, AND THE EXCLUSIVE REMEDY FOR THE PARTIES, FOR ANY INFRINGEMENT OF ANY PATENT, COPYRIGHT, TRADEMARK, TRADE SECRET, MASK WORK
OR OTHER PROPRIETARY RIGHT OF A THIRD PARTY. ARM AND LGS DISCLAIM ALL OTHER LIABILITY FOR ANY SUCH INFRINGEMENT. INCLUDING ANY INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT.
NEITHER PARTY SHALL BE LIABLE FOR ANY AMOUNTS IN EXCESS OF THE SUM OF TWO HUNDRED AND EIGHTY FIVE THOUSAND US DOLLARS (US$285,000) IN THE AGGREGATE FOR ALL PAYMENTS MADE PURSUANT TO ANY CLAIMS IN ANY WAY ARISING OUT OF OR IN CONNECTION WITH THE
PROVISIONS OF THIS CLAUSE 16. 

  

					
	 	  	Page 18	  	 

	17.	Disclaimer of Consequential Damages 

  

	17.1	IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHETHER SUCH DAMAGES ARE ALLEGED AS A RESULT OF TORTIOUS CONDUCT OR BREACH OF
CONTRACT OR OTHERWISE EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. SUCH DAMAGES SHALL INCLUDE BUT SHALL NOT BE LIMITED TO THE COST OF REMOVAL AND REINSTALLATION OF GOODS, LOSS OF GOODWILL, LOSS OF PROFITS, LOSS OF USE
OF DATA, INTERRUPTION OF BUSINESS OR OTHER ECONOMIC LOSS BUT NOTHING IN THIS CLAUSE SHALL OPERATE TO EXCLUDE LIABILITY FOR DEATH OR PERSONAL INJURY RESULTING FROM EITHER PARTY’S NEGLIGENCE. 

  

	18.	Term and Termination 

  

	18.1	This Agreement shall commence on the Effective Date and continue in force, except as provided by Clause 18.3, unless and until terminated in accordance with the provisions of Clause
18.2. 

  

	18.2	Without prejudice to any other right or remedy which may be available to it, either party shall be entitled summarily to terminate this Agreement by giving written notice to the
other. 

  

	 	(i)	if the other party has committed a material breach of any of its obligations hereunder which is not capable of remedy; or 

  

	 	(ii)	if the other party has committed a material breach of any of its obligations hereunder which is capable of remedy but which has not been remedied within a period of sixty (60) days
following receipt of written notice to do so; or 

  

	 	(iii)	makes any voluntary arrangement with its creditors for the settlement of its debts or becomes subject to an administration order; or 

  

	 	(iv)	has an order made against it. or passes a resolution, for its winding-up (except for the purposes of amalgamation or reconstruction) or has an encumbrancer take possession or has a
receiver or similar officer appointed over all or substantially all of its property or assets. 

  

	18.3	After a period of seven and one half (7.5) years from the Effective Date of the 1995 Agreement (the “Initial Period”), the licence set forth in Clause 5 shall expire
automatically whereupon LGS shall have no further right or licence in respect of the Tools. However, LGS may renew the licence granted under the provisions of Clause 5, subject to the provisions of Clauses 18.3(i) and (ii), for a further term of
seven (7) years upon payment of a fee (“Renewal Fee”). 

  

	 	(i)	LGS may exercise its rights to renew, as provided by this Clause 18.3, provided that LGS gives to ARM not less than six (6) months notice in writing of its intention to so renew,
expiring on the seventh anniversary of the Effective Date. 

  

	 	(ii)	Upon receipt of LGS’s notice served in accordance with Clause 18.3(i), the parties shall enter into good faith negotiations to agree a reasonable Renewal Fee. For the avoidance
of doubt, LGS shall not be entitled to exercise any of the rights contained in Clause 5 unless and until agreement has been reached and the Renewal Fee has been paid to ARM. 

  

					
	 	  	Page 19	  	 

	18.4	LGS and ARM acknowledge that each and every term and condition of this Agreement has been fully and completely negotiated and such terms and conditions closely relate to each other.
In the event that the Korean governmental authorities, including the Korean Fair Trade Commission, during the review of this Agreement require a modification to one or more of the clauses or this Agreement. ARM shall have the option to renegotiate
the entire Agreement or accept the applicable modification of the Agreement as required by such governmental authorities. 

  

	19.	Effect of Termination 

  

	19.1	Upon termination of this Agreement by either party pursuant to Clause 18.2, LGS will immediately discontinue any use and distribution of all ARM Compliant Products, Software,
Intellectual Property, Transfer Materials and ARM Confidential Information. LGS shall, at ARM’s option, either destroy or return to ARM any Confidential Information, including any copies thereof in its possession, together with the Transfer
Materials and all copies of the Software in its possession. Within one month after termination of this Agreement LGS will furnish to ARM a certificate signed by a duly authorised officer of LGS that to the best of his or her knowledge, information
and belief, after due enquiry, LGS has complied with provisions of this Clause. For the avoidance of doubt, any sub-licences of the Software granted by LGS prior to the termination of this Agreement shall survive such termination.

  

	19.2	Upon termination of this Agreement the termination date shall be treated as the end of a Half Year for the purposes of accounting for all Running Royalties due to ARM. Thereafter
LGS shall submit a royalty report to ARM in accordance with the provisions of Schedule 6. 

  

	19.3	The provisions of Clauses 1, 2.3, 2.4 (in respect of LGS’s obligation to indemnify ARM thereunder), 7, 9 (to the extent that any amounts remain due and unpaid at the date of
termination), 14, 16, 17, 19, and 20 shall survive termination or expiration of this Agreement. 

  

	20.	General 

  

	20.1 	All communications between the parties including, but not limited to, notices, royalty reports, error or bug reports, the exercise of options, and support requests shall be in the
English language. 

  

	20.2 	All notices which are required to be given hereunder shall be in writing and shall be sent to the address of the recipient set out in this Agreement or such other address as the
recipient may designate by notice given in accordance with the provisions of this Clause. Any such notice may be delivered personally, by commercial overnight courier or facsimile transmission which shall be followed by a hard copy and shall be
deemed to have been served if by hand when delivered, if by commercial overnight courier 48 hours after deposit with such courier, and if by facsimile transmission when dispatched. 

  

	20.3 	Neither party shall assign or otherwise transfer this Agreement or any of its rights and obligations hereunder whether in whole or in part without the prior written consent of the
other. 

  

	20.4 	Neither party shall be liable for any failure or delay in its performance under this Agreement due to causes, including, but not limited to, acts of God, acts of civil or military
authority, fires, epidemics, floods, earthquakes, riots, wars, sabotage, third party industrial disputes and governments actions, which are beyond its reasonable control: provided that the delayed party: (i) gives the other party written notice of
such cause promptly, and in any event within fourteen (14) days of discovery thereof; and (ii) uses its reasonable efforts to correct such failure or delay in its performance. The delayed party’s time for performance or cure under this Clause
20.4 shall be extended for a period equal to the duration of the cause. 

  

					
	 	  	Page 20	  	 

	20.5	ARM and LGS are independent parties. Neither company nor their employees, consultants, contractors or agents, are agents, employees or joint venturers of the other parry, nor do
they have the authority to bind the other party by contract or otherwise to any obligation. Neither party will represent to the contrary, either expressly, implicitly, by appearance or otherwise. 

  

	20.6	The parties agree that the terms and conditions of this Agreement shall be treated as Confidential Information hereunder and shall not be disclosed without the consent of both
parties. 

  

	20.7	Failure by either party to enforce any provision of this Agreement shall not be deemed a waiver of future enforcement of that or any other provision. 

  

	20.8	If any provision of this Agreement, or portion thereof, is determined to be invalid or unenforceable the same will be enforced to the maximum extent permissible so as to effect the
intent of the parties, and the remainder of this Agreement will continue in full force and effect. 

  

	20.9	The headings to the Clauses of this Agreement are for ease of reference only and shall not affect the interpretation or construction of this Agreement. 

  

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

  

	20.11	 This Agreement, including all Schedules and documents referenced herein, constitutes the entire agreement between the parties with respect to the subject matter hereof, and
supersedes and replaces all prior or contemporaneous understandings or agreements, written or oral, regarding the subject matter. No amendment to, or modification of, this Agreement shall be binding unless in writing and signed by a duly authorised
representative of both parties. 

  

	20.12	 This Agreement shall be governed by and construed in accordance with the laws of England. In the event that ARM commences proceedings against LGS under this Agreement, the
parties agree to submit to the jurisdiction of the Seoul District Court, Korea, for the purpose of hearing and determining any disputes arising out of this Agreement. In the event that LGS commences proceedings against ARM under this Agreement, the
parties agree to submit to the jurisdiction of the High Court of Justice, London, England, for the purpose of hearing and determining any disputes arising out of this Agreement. 

  
 IN WITNESS WHEREOF the parties have caused this Agreement to be
executed by their duly authorised representative: 
  

									
	ADVANCED RISC MACHINES LIMITED:	 	 	 	LG SEMICON COMPANY LIMITED:
					
	SIGNED:	 	 /s/ R. K. Saxby
	 	 	 	SIGNED:	 	 /s/ B. D. Sun

					
	 NAME:
	 	 R. K. Saxby
	 	 	 	 NAME:
	 	 Byung-Don Sun

					
	 TITLE:
	 	 President & CEO
	 	 	 	 TITLE:
	 	 Executive Vice President

  

					
	 	  	Page 21ARM7201TDSP Device License Agreement, dated Aug. 26, 1997-Advanced RISC Machines

 Exhibit 10.32 
  
 ARM7201TDSP Device Licence Agreement 
  
 This device licence agreement (“The Agreement”) is made the 26th day of August 1997 
  
 between 
  
 ADVANCED RISC MACHINES LIMITED 
  
 whose registered office is situated at 90, Fulbourn Road, Cherry Hinton, Cambridge, CB1
4JN (“ARM”) 
  
 and 
  
 LG SEMICON COMPANY LIMITED 
  
 whose principle place of business is situated at 16 Woomyeon-dong, Seocho-qu, Seoul
137-140 Korea (“LGS”) 
  
 IT IS HEREBY AGREED AS FOLLOWS;

  
 Except to the extent that the terms of this Agreement are inconsistent
with the terms of the 1996 Agreement, in which event the terms of this Agreement shall prevail, this Agreement shall be without prejudice to the terms of the 1996 Agreement and the terms of the 1996 Agreement shall apply. 
  

	1.	Definitions 

  
 The following terms shall have the following meanings where used in this Agreement; 
  

	1.1	“1996 Agreement” shall mean the Technology Licence Agreement between ARM and LGS dated the 16th December 1996. 

  

	1.2	“ARM Services” shall mean the services described in Schedule 1 which ARM shall provide to LGS pursuant to this Agreement. 

  

	1.3	“ARM Compliant Product” shall mean any single silicon chip developed by LGS which contains, at a minimum; (i) an ARM7TDMI Core or a Modified ARM7TDMI
Core as defined in the 1996 Agreement; or (ii) an ARM720T Core or a Modified ARM720T Core, which has been verified in accordance with the provisions of Clause 3 of the 1996 Agreement mutatis mutandis. 

  

	1.4	“ARM720T Core” shall mean the ARM720T Core specified in the ARM720T Datasheet identified in Schedule 3 Part A. 

  

	1.5	“ARM720T Model” shall mean the ARM720T Model identified in Schedule 3 Part B. 

  

	1.6	“ARM720T Core Transfer Materials” shall mean the items in respect of the ARM720T Core identified in Schedule 3. 

  

	1.7	“ARM7201TDSP Device” shall mean the device specified in the device specification approved by LGS in accordance with Clause 3.3 together with any
changes thereto mutually agreed between the parties in writing from time to time. A preliminary specification is set out in Schedule 11. 

  

 1 

	1.8	“ARM7201TDSP Transfer Materials” shall mean the items identified in Schedule 2 Parts A. 

  

	1.9	“ARM720TDSP” shall mean the combined core of the ARM720T Core and the Piccolo Core 

  

	1.10	“ARM720TDSP Transfer Materials” shall mean the items identified in Schedule 2 Part B. 

  

	1.11	“ARM Deliverables” shall mean the ARM720T Core Transfer Materials, ARM720TDSP Core Transfer Materials, the ARM7201TDSP Transfer Materials and the Piccolo Core
Transfer Materials. 

  

	1.12	“Beta Release” shall mean a version of the Software which, subject to Known exceptions (which will be documented and provided to LGS); 

  

	 	(i)	substantially conforms with the Specification; and 

  

	 	(ii)	is free from significant bugs. 

  

	1.13	“Delivery Schedule” shall mean the dates set out in the various schedules of this Agreement for performance of the ARM Services for and delivery of the ARM720T Core
Transfer Materials, the ARM720TDSP Core Transfer Materials, the ARM7201TDSP Transfer Materials, the Piccolo Core Transfer Materials, and the Software to LGS. 

  

	1.14	“Design Win Event” shall mean for each different ARM Compliant Product or semiconductor product incorporating the Piccolo Core, the point in time of sale, supply or
other distribution by LGS of ten thousand (10,000) units of such product. 

  

	1.15	“Device Driver Software” shall mean the source and object code versions of the computer programs and documentation identified in Schedule 5 Part A.

  

	1.16	“Effective Date” shall mean the date of this Agreement or date upon which the Korean Government gives approval to this Agreement, whichever is the later, subject
always to the provision of Clause 13.3. 

  

	1.17	“Final Release” shall mean a version of the Software which; 

  

	 	(i)	conforms with the Specification; 

  

	 	(ii)	is free from significant bugs; and 

  

	 	(iii)	is supported by such documentation as is necessary for its, installation, operation and interpretation. 

  

	1.18	“FPGA Board” shall mean the hardware identified in Schedule 5 Part B. 

  

	1.19	“OAL Software” shall mean the source and object code versions of the computer programs and documentation identified in Schedule 5 Part A. 

 

	1.20	 “Intellectual Property” shall mean patents and patent rights, trade marks, service marks, registered designs, applications for any of the
foregoing, design rights, 

  

 2 

	 	 
topography or mask rights, copyright, know-how, Confidential Information, any Intellectual Property Derivatives, and any other similar protected rights in
any country. 

  

	1.21	“Intellectual Property Derivatives” shall mean; (i) for copyrightable or copyrighted material, any translation, abridgement, revision or other form in which an
existing work may be recast, transformed or adapted; (ii) for work protected by topography or maskwork right, any translation, abridgement, revision or other form in which an existing work may be recast, transformed or adapted; (iii) for patented or
patentable material, any improvement; and (iv) for material protected by trade secret any new material derived from or employing such trade secret. 

  

	1.22	“LGS Deliverables” shall mean the items in respect of the ARM7201TDSP Device identified in Schedule 8 Part A. 

  

	1.23	“LGS Services” shall mean the services as set out in Schedule 9 which LGS shall provide to ARM. 

  

	1.24	“LG Affiliates” shall mean each of the companies set out in Schedule 10. 

  

	1.25	“Microsoft” shall mean Microsoft Corporation, One Microsoft Way, Redmond, WA 9052-6399 USA. 

  

	1.26	“Modified ARM720T Core” shall mean any ARM720T Core modified in accordance with the provisions of Clause 2.2 of the 1996 Agreement mutatis mutandis.

  

	1.27	“Modified ARM720TDSP Core” shall mean any ARM720TDSP Core modified in accordance with the provisions of Clause 2.2 of the 1996 Agreement mutatis mutandis.

  

	1.28	“Model” shall mean: (i) the object code and source code of the Design Transfer Model identified in Schedule 2, Schedule 3 and Schedule 4; (ii) the object code and
such source code of the Design Simulation Models and Design Simulation Model Options identified in Schedule 2, Schedule 3 and Schedule 4 as may be necessary (at ARM’s absolute discretion) to allow the support of subsequent releases of the
specified simulator; together with such Updates thereof, if any, as are developed by or for ARM. 

  

	1.29	“NSP” shall mean the net sales price of any ARM Compliant Products calculated by taking the aggregate invoice price charged on arm’s length terms by LGS and
its Subsidiaries in the sale or distribution of any ARM Compliant Product, less any (i) value added, turnover, import, or other tax, duty or tariff payable thereon (ii) freight and insurance costs incurred and (iii) amounts actually repaid or
credited with respect to any ARM Compliant Products returned. 

  

	1.30	“OEM Agreement” shall mean a separate royalty license and distribution agreement by which MS licenses an original equipment manufacturer (OEM) the right to
distribute Windows CE with a Windows CE Device designed by such OEM. 

  

	1.31	“Piccolo Coprocessor” shall mean the ARM SP7 as described and identified in the ARM SP7 datasheet. ARM DDI - 0089 

  

	1.32	“Piccolo Core” shall mean an implementation which 

  

	 	(i)	executes each and every instruction in the Piccolo Instruction Set; 

  

 3 

	 	(ii)	executes no additional instructions to those contained in the Piccolo Instruction Set; and 

  

	 	(iii)	has been verified using ARM720TDSP test chip in accordance with the provisions of Clause 3 of the 1996 Agreement. 

  

	1.33	“Piccolo Instruction Set” shall mean the Piccolo Instruction Set as defined in the Piccolo Architecture Specification: ARM IPU - 0025 including all amendments and
architectural enhancements made thereto within a period of ten (10) years from the Effective Date. 

  

	1.34	“Piccolo Core Transfer Materials” shall mean the items in respect of the Piccolo Core identified in Schedule 4. 

  

	1.35	“Software” shall mean together the OAL Software and the Device Driver Software. 

  

	1.36	“ARM Software” shall mean together the Models, Tools, Test Programs, Embedded ICE and Vectors for the ARM720T Core, the ARM720TDSP, the ARM7201TDSP Device and the
Piccolo Core identified in Schedule 2, Schedule 3 and Schedule 4. 

  

	1.37	“Software Transfer Materials” shall mean the items identified in Schedule 5. 

  

	1.38	“Specification” shall mean the specification for the Software as set out in Schedule 5. 

  

	1.39	“Subsidiary” shall mean any company the majority of shares is now or hereafter owned or controlled, directly or indirectly, by a party hereto or any company a
majority of whose voting shares is now or hereafter owned or controlled, directly or indirectly, by any of the aforementioned entities. A company shall be considered a Subsidiary only so long as such control exists. 

  

	1.40	“Test Programs” shall mean the source code and object code of the programs identified in Schedule 2, Schedule 3 and Schedule 4 together with such Updates, if any,
as are developed by or for ARM. 

  

	1.41	“Tools” shall mean: (i) the source and object code of the programs identified in Schedule 4 Part C Section 1; and (ii) the documentation identified in Schedule 4
Part C Section 2, together with such Updates, if any, as are developed by or for ARM. 

  

	1.42	“Updates” shall mean; (i) for the ARM Software, any bug fixes or enhancements to the Software the incorporation of which ARM, in its absolute discretion, decides
does not cause to be created a new product; and (ii) for the ARM Deliverables, all modifications, enhancements and updates to the ARM Deliverables, created by ARM, including such modifications to the ARM Deliverables as are made by ARM’s other
licensees and adopted by ARM for general release as an update provided that ARM may exclude any modification, enhancement or update which ARM, in its absolute discretion decides, results in the creation of a new product 

  

	1.43	“Validation Card” shall mean the hardware identified in Schedule 2 Part D. 

  

	1.44	“Vectors” shall mean together the Test Chip functional vectors and Test Chip characterisation vectors identified in Schedule 2, Schedule 3 and Schedule 4.

  

	1.45	“Windows CE” or “WinCE” shall mean any version Microsoft’s hand-held operating system and applications platform software delivered by
Microsoft to ARM. 

  

 4 

	1.46	“Windows CE OAK” shall mean the Windows CE OEM adaptation kit. 

  

	1.47	“Windows CE Device” or “WinCE Device” shall mean any semiconductor device designed and/or assembled by LGS which
incorporates the WinCE operating system software. 

  

	2.	ARM Deliverables and Provision of ARM Services 

  

	2.1	ARM shall deliver the ARM Deliverables and the Software Transfer Materials, to LGS, in accordance with the Delivery Schedule. 

  

	2.2	ARM shall apply reasonable skill and care in the provision of the ARM Services to LGS. 

  

	2.3	LGS shall provide, to ARM, all necessary accurate information, support and cooperation that may be reasonably required to enable ARM to provide the ARM Services to LGS in accordance
with the Delivery Schedule. 

  

	2.4	ARM shall provide the following services to LGS; 

  

	 	(i)	the Core Maintenance Services for the ARM720T Core, the ARM720TDSP Core and the Piccolo Core in accordance with the provisions of the Clause 12 of the 1996 Agreement mutatis
mutandis. 

  

	 	(ii)	the Software Maintenance Services for the ARM Software in accordance with the provisions of the Clause 13 of the 1996 Agreement mutatis mutandis. 

  

	 	(iii)	the Training for the ARM720T Core, the ARM720TDSP Core and the Piccolo Core in accordance with the provisions of the Clause 12 of the 1996 Agreement mutatis mutandis.

  
 For the avoidance of doubt, LGS do not need to
pay any additional Core Maintenance Fee or Software Maintenance Fee set out in Schedule 12 of the 1996 Agreement for such services. 
  

	2.5	LGS acknowledges that adherence to the Delivery Schedule by ARM is dependent upon the receipt by ARM of certain deliverables from Microsoft. ARM shall not be liable for any
departure from the Delivery Schedule which results directly or indirectly from any failure by Microsoft to deliver such deliverables to ARM in a timely manner provided that ARM has used reasonable efforts to secure timely delivery from Microsoft.

  

	3.	ARM7201TDSP Device Development 

  

	3.1	Subject to the provisions of Clauses 6.2 and 2.5, ARM shall use reasonable efforts to develop and deliver the ARM7201TDSP Transfer Materials to LGS in accordance with the Delivery
Schedule. 

  

	3.2	 Where LGS provides a requirements specification to ARM for the ARM Deliverables, ARM shall review the requirements specification in good faith and if the
requirements specification is acceptable to ARM, then ARM shall approve it in writing prior to commencement of work under this Agreement. If the requirements specification is not acceptable to ARM then ARM shall recommend the changes to the
requirements 

  

 5 

	 	 
specification that would make it acceptable to ARM. If, after ARM has approved the requirements specification, LGS requires that the requirements
specification be revised for any reason, LGS shall be liable for the cost of any work required to comply with such revisions. ARM shall review any such requirement in good faith and shall deliver a reasonable quote for the performance of the
additional work, to LGS, based on ARM’s then standard scale of consulting charges. 

  
 Where ARM provides a device specification to LGS, LGS shall review the device specification and shall report, to ARM, in writing, within three(3) weeks of
receipt of the device specification whether or not it is approved (such approval not to be unreasonably withheld) and if not approved the reasons for withholding approval. If the device specification is not approved by LGS because it fails to comply
with LGS requirements specification as approved in Clause 3.2 then, ARM shall revise the device specification accordingly and resubmit it to LGS. This process shall be repeated until the device specification is approved by LGS. If, after LGS has
approved the device specification, LGS requires that the device specification be revised for any reason, LGS shall be liable for the cost of any work required to comply with such revisions. ARM shall review any such requirement in good faith and
shall deliver a reasonable quote for the performance of the additional work, to LGS, based on ARM’s then standard scale of consulting charges. 
  
 ARM shall deliver, to LGS, a behavioural model which conforms to the device specification as approved under Clause 3.3. LGS, with ARM’s support,
shall check the behavioural model to determine whether or not the behavioural model conforms to the device specification as approved under Clause 3.3. LGS shall complete the checking of the behavioural model within thirty (30) days of its receipt
from ARM, and upon completion of the checking shall promptly report, to ARM, in writing whether or not the behavioural model complies with the device specification. If LGS demonstrates that the behavioural model fails to comply with the device
specification, ARM shall be responsible for Identifying the cause of such failure and shall use reasonable efforts to correct the problem and expedite the delivery to LGS of a corrected behavioural model. The parties shall repeat the above process
until the behavioural model is approved by LGS. If, after LGS has approved the behavioural model, LGS requires that the behavioural model be revised for any reason, LGS shall be liable for the cost of any work required to comply with such revisions.
ARM shall review any such requirement in good faith and shall deliver a reasonable quote for the performance of the additional work, to LGS, based on ARM’s standard scale of consulting charges. 
  
 Where ARM is delivering layout to LGS, ARM shall; 
  

	 	(i)	perform an LVS check in respect of such layout. The LVS check shall be deemed complete when either; (i) the LVS check indicates an exact match between the layout and the schematic
netlist; or (ii) where all discrepancies between the layout and the schematic netlist have been reviewed by the parties with the foundry in good faith and a waiver agreed between ARM, LGS and the foundry; 

  

	 	(ii)	perform layout simulation and provide test vectors for layout verification; and 

  

	 	(iii)	 perform a design rule check in respect of such layout by reference to the DRC file provided by LGS (where, for the purposes of this Clause 3.5(iii), LGS shall mean
LGS or LGS chosen foundry, as appropriate) to ARM. The layout delivered to LGS by ARM shall be deemed to comply with the LGS design rules if the layout passes the DRC provided by LGS. The layout shall be deemed to pass the DRC when either, (i) The
DRC log generated by 

  

 6 

	 	 
running the DRC on the layout reports no breach or breaches of the LGS design rules; or (ii) where all reported breach or breaches have been reviewed by the
parties and where appropriate the LGS chosen foundry in good faith and a waiver agreed between ARM, LGS and the foundry. ARM shall have no responsibility for any inconsistency between the DRC file provided by LGS and LGS corresponding design rules
nor shall ARM be responsible for any failure by the DRC provided by LGS to comprehensively test for compliance with the LGS corresponding design rules. 

  

	3.6	Following delivery of any complete layout, by ARM, to LGS, LGS shall manufacture the ARM7201TDSP Device. With support from ARM, LGS shall test the prototypes of the ARM7201TDSP
Device to determine whether or not the functionality and performance of the prototypes conforms to the device specification approved by LGS in accordance with the provisions of Clause 3.3. ARM shall continue to support LGS in the testing of the
ARM7201TDSP Device until such device is approved by LGS. Upon completion of the testing of the prototypes, LGS shall promptly report to ARM, in writing, whether or not the prototypes comply with the device specification and in the event that LGS
believes that the prototypes do not comply with the device specification, LGS shall provide ARM with details of such non-compliance. ARM shall be responsible for identifying the cause of such non-compliance and shall use reasonable endeavours to
amend the layout such that revised prototypes can be manufactured which do comply with the device specification. The parties shall repeat the above process until the prototypes are approved by LGS. 

  

	4.	Software Development 

  

	4.1	Subject to the provisions of Clauses 6.2 and 2.5, ARM shall use reasonable efforts to develop and deliver the Software and the Software Transfer Materials to LGS in accordance with
the Delivery Schedule. 

  

	4.2	LGS shall review the Specification and shall report, to ARM, in writing, within thirty (30) days of receipt of the Specification whether or not it is approved (such approval not to
be unreasonably withheld) and if not approved the reasons for withholding approval. If the Specification is not approved by LGS, ARM shall revise the Specification accordingly and resubmit it to LGS. This process shall be repeated until the
Specification is approved by LGS. If, after LGS has approved the Specification, LGS requires that the Specification be revised for any reason, LGS shall be liable for the cost of any work required to comply with such revisions. ARM shall review any
such requirement in good faith and shall deliver a reasonable quote for the performance of the additional work, to LGS, based on ARM’s then standard scale of consulting charges. 

  

	4.3	Within forty (40) days of receipt of each Beta Release by LGS, LGS shall test the Beta Release and report any bugs or non-compliance with the Specification to ARM. If any bugs or
non-compliance are reported, ARM shall revise the Beta Release accordingly and resubmit it to LGS within twenty (20) days of receipt of the non-compliance report regarding the Beta Release. This process shall be repeated until the Beta Release is
approved by LGS, provided, however, that the total period of time for such repeat shall be limited to eighty (80) days. It LGS fails to test a Beta Release and deliver a report of non-compliance to ARM within forty (40) days of receipt of the Beta
Release, then such Beta Release shall be deemed to be accepted by LGS. 

  

	4.4	Within forty (40) days of receipt of the Final Release by LGS, LGS shall provide written confirmation of approval of the Final Release to ARM. If any bugs or

  

 7 

	 	 
non-compliance are reported. ARM shall revise the Final Release accordingly and resubmit it to LGS within twenty (20) days of receipt of the non-compliance
report regarding the Final Release. This process shall be repeated until the Final Release is approved by LGS, provided, however, that the total period of time for such repeat shall be limited to sixty (60) days. If LGS fails to-deliver confirmation
of approval to ARM within forty (40) days of receipt of the Final Release by LGS, then the Final Release shall be deemed to be approved by LGS. 

  

	5.	Fees and Terms of Payment 

  

	5.1	In consideration of the licenses granted by ARM, to LGS, for the ARM7201TDSP Device, the ARM720T Core, the Piccolo Core, the Software and other ARM Deliverables and the Win CE
Consortium rights set out in Schedule 12, LGS shall pay to ARM; (i) a tee (Technology Fee”) of [*****] in accordance with the provisions of Schedule 7 allocated as follows; 

  

				
	 ARM7201TDSP Device, ARM720T Core,
	  	 	 
		
	 Win CE Consortium rights set out in Schedule 12 and Software
	  	[*****	]
		
	 Piccolo Core with WinCE Device
	  	[*****	]
		
	 Piccolo Core with any integrated circuit
	  	[*****	]

  
 and (ii) Running
Royalties in accordance with the provisions of Clause 5. 
  

	5.2	LGS shall pay, to ARM, all reasonable travelling accommodation and sustenance expenses necessarily incurred by ARM when visiting LGS, or LGS agent’s premises in performance of
ARM’s obligations under this Agreement. 

  

	5.3	For each unit of ARM Compliant Product incorporating an ARM720T Core or a Modified ARM720T Core sold, supplied or distributed by LGS, LGS shall pay a royalty (“Running
Royalty”) in accordance with the Running Royalty table set out in Schedule 6. 

  

	5.4	For each unit of ARM Compliant Product or other integrated circuit which incorporates a Piccolo Core sold, supplied or distributed by LGS, LGS shall pay a royalty (“Running
Royalty”) calculated in accordance with the Running Royalty Rate tables set out in Schedule 6. 

  

	5.5	LGS shall pay the fees, to ARM, in accordance with the provisions of this Clause 5. 

  

	5.6	Reporting and payment any Running Royalties shall be submitted to ARM, by LGS, in accordance with the terms set out in Schedule 6 of the 1996 Agreement. 

  

	5.7	The Element of the Technology Fee due in respect of the Win CE Consortium rights shall be due as follows; 

  

				
	 On the Effective Date
	  	[*****	]
		
	 On availability of Beta of Tools Port from Microsoft (ARMv4 version only)
	  	[*****	]

  
 [*****] - Portions of this exhibit are
subject to a request for confidential treatment and have been redacted and filed separately with the Securities and Exchange Commission. 
  

 8 

			
	 On Release To Manufacturing by Microsoft of OAK for ARM (ARMv4 version only) Birch Version
	  	[*****]
		
	 On Release To Manufacturing by Microsoft of the Windows CE Port for ARM (ARMv4 version only) Birch version
	  	[*****]

  
 The balance of the
Technology Fee shall be due under this Agreement in accordance with the payment schedule set out in Schedule 7. 
  

	5.8	In consideration of the Support and Maintenance Services provided by ARM, to ARM Partner, under Schedule 12, for a period of two (2) years from the Effective Date, ARM Partner shall
pay to ARM, in advance, an annual fee (“Maintenance Fee”) of [*****]. The Maintenance Fee for the first year following the Effective Date shall be deemed included within the Consortium Fee. The Maintenance Fee for the second year following
the Effective Date shall be due upon the anniversary of the Effective Date. 

  

	5.9	In consideration of the Development Services provided by ARM, to ARM Partner, under Schedule 12, for the period of two (2) years ending on the 30th June 1999, ARM Partner shall pay to ARM an annual development services fee (“Development Fee”). The Development Fee for the first year
following the Effective Date shall be [*****] and shall be deemed included within the Consortium Fee. The Development Fee for the second year following the Effective Date shall be due in accordance with the provisions of Clause 5.10 and shall be
determined by reference to the number of Members on the anniversary of the Effective Date as follows: 

  

			
	 Number of Members

	  	Development Fee (US$)

	 1 - 2
	  	[*****]
	 3
	  	[*****]
	 4
	  	[*****]
	 5 and above
	  	[*****]

  

	5.10	Fifty percent (50%) of the Development Fee for the second year following the Effective Date shall be due on the first anniversary of the Effective Date. If provision of the
Development Services is substantially procured by ARM by payments to BSquare or any third party contractor, then the balance of the Development Fee for the second year following the Effective Date shall be due only when ARM makes such payments to
the third party. The amount of each installment due from ARM Partner shall be the same proportion of the balance of the Development Fee as the payment by ARM to the third party is a proportion of ARM’s committed expenditure to the third party
in that period. If provision of the Development Services is not substantially procured by ARM by payment to a third party, then the Development Fee shall be due only where ARM can demonstrate to ARM Partner a reasonable schedule for the availability
of the next version of the Tools Port and in such event the balance of the Development Fee shall be due in four equal quarterly installments with the first installment due on the first anniversary of the Effective Date. 

  

	5.11	ARM warrants to ARM Partner that, for the period from the 30th June 1997 to 30th June 2000 (the “Initial Period”), the Consortium Fee payable by any
third party shall be one million US dollars (US$1,000,000). If any more favourable rate is agreed with any third party during the Initial Period, then ARM shall refund, to ARM Partner, the difference between the Consortium Fee and the more
favourable rate payable by the third party. 

  
 [*****] - Portions
of this exhibit are subject to a request for confidential treatment and have been redacted and filed separately with the Securities and Exchange Commission. 
  

 9 

	5.12	ARM further warrants to ARM Partner that the Maintenance Fees and Development Fees due in respect of the two (2) year period expiring on the 30th June 1999 (the “Initial
Support Period”), shall be the same rates as set out in this Win CE Agreement for all Founder Members (together with, after the expiry of the Initial Period, Ordinary Members) subject always to the effect of the discount schedule applicable in
respect of the second year of this Win CE Agreement as set forth in Clause 5.9 (the “Discount Schedule”). If any more favourable rates are agreed with another Founder or Ordinary Member during the Initial Support Period (other than where
such more favourable rate is obtained by virtue of the operation of the Discount Schedule), then ARM shall refund, to ARM Partner, the difference between the Maintenance Fee or Development Fee, as appropriate, and the more favourable rate.

  

	5.13	All sums due to ARM under this Agreement shall be paid net thirty (30) days of receipt by ARM Partner of an invoice therefor. 

  

	5.14	Any income or other tax which LGS is required by law to pay or withhold on behalf of ARM with respect to any license fees and/or royalties payable to ARM under this Agreement shall
be deducted from the amount of such of license fees and/or royalties otherwise due, provided, however, that in regard to any such deduction, LGS shall give to ARM such assistance as may be necessary to enable or assist ARM to claim exemption
therefrom, or credit therefor, and shall upon request furnish to ARM such certificates and other evidence of deduction and payment thereof as ARM may properly require. 

  

	5.15	If any sum due under this Agreement is not paid within thirty (30) days of receipt, by LGS, of an invoice therefor then, without prejudice to ARM’s other rights and remedies,
ARM reserves the right to charge interest on such sum on a day to day basis (as well after as before any judgement) from the date that such sum became due to the date of payment at the rate of two (2) per cent per annum above the base rate of
Barclays Bank PLC from time to time in force. 

  

	6.	LGS Deliverables 

  

	6.1	LGS shall deliver the LGS deliverables, to ARM, in accordance with the delivery schedule set out in Schedule 8 Part B. 

  

	6.2	If LGS fails to deliver the LGS Deliverables in accordance with the delivery schedule set out in Schedule 8 Part B and such failure prevents ARM from meeting any of its obligations
under Clause 3.1, ARM shall be permitted to extend any relevant dependent dates in the Delivery Schedule for such period as is reasonable. 

  

	6.3	To the extent that it does not result in a disclosure of Confidential Information or a breach of LGS’s or any third party Intellectual Property, nothing in this Agreement shall
be construed to prevent ARM from using, in furtherance of ARM’s normal business, ideas and know-how gained during the performance of the ARM Services and development of the ARM Deliverables and Software. 

  

	7.	Provision of LGS Services 

  

	7.1	For the duration of this Agreement LGS shall provide the LGS Services, as required by ARM. 

  

	7.2	LGS shall apply reasonable skill and care in the provision of the LGS Services to ARM. 

  

 10 

	7.3	ARM shall provide, to LGS, all necessary accurate information, support and cooperation that may be reasonably required to enable LGS to provide the LGS Services to ARM.

  

	8.	Intellectual Property and Licences 

  
 General 
  

	8.1	Except as set out in this Agreement, all right, title and interest in any Intellectual Property in any or all of the ARM Deliverables and ARM Software shall vest in and be owned by
ARM. 

  
 ARM720T Core Licence 
  

	8.2	Except to the extent that such terms and conditions have been varied by the terms of this Agreement, ARM hereby grants to LGS a licence, in respect of the ARM720T Core, the Modified
ARM720T Core and/or the ARM720T Core Transfer Materials, upon the terms and conditions set out in Clause 2 of the 1996 Agreement (mutatis mutandis) in respect of the ARM7TDMI Core, the Modified ARM7TDMI Core and the ARM7TDMI Core Transfer Materials.

  
 ARM Software Licence 
  

	8.3	Except to the extent that such terms and conditions have been varied by the terms of this Agreement, ARM hereby grants to LGS a licence, in respect of the ARM Software, upon the
terms and conditions set out in the 1996 Agreement (mutatis mutandis) in respect of the Models, Embedded ICE, PID7T, Configurable Device Programs, and Verification and Test as defined in the 1996 Agreement except that LGS shall also have the right
to modify the ARM Software and the rights granted under the 1996 Agreement shall apply mutatis mutandis to any modified ARM Software developed by LGS by exercising such right. 

  
 Piccolo Core Licence 
  

	8.4	In consideration of the payment in accordance with the provisions set out in Schedule 7 in respect of the Piccolo Core, ARM hereby grants to, LGS, subject to the terms and
conditions of the 1996 Agreement mutatis mutandis a non-transferable, non-exclusive, world-wide licence, with the right to sub-license to LGS’s Subsidiary, to use, modify (subject to the provisions of Clauses 2.2 and 2.3 of the 1996 Agreement
mutatis mutandis) and copy the Piccolo Core and/or the Piccolo Transfer Materials for the purposes of creating, developing, having developed, manufacturing, having manufactured (subject to the provisions of Clauses 2.4 and 2.5 of the 1996 Agreement
mutatis mutandis), and selling, supplying and distributing to any third party, ARM Compliant Products or any other semiconductor products. 

  
 Software Modem Licence 
  

	8.5	In the event that ARM owns or has secured the right from a third party to sub-licence, a 56K6bps software modem, ARM shall not unreasonably withhold a licence, to LGS, in respect of
such 56K6bps software modem on usual commercial terms. 

  

 11 

 Software Licence 
  

	8.6	LGS hereby acknowledges and represents that ARM has advised LGS that an OEM Agreement with Microsoft is necessary in order to obtain license rights to the Microsoft WinCE software
and that LGS’s intended customers should communicate with Microsoft concerning such a proposed license agreement prior to signature of this Agreement. 

  

	8.7	ARM shall use reasonable efforts to secure the rights from Microsoft, subject to Microsoft’s rights and interests in the Device Driver Software to sub-license, to Recipient the
non-exclusive, non-transferable, worldwide right under ARM’s Intellectual Property, to copy, use, modify, sell, supply and distribute the Device Driver Software in conjunction with software licensed from Microsoft. ARM shall use reasonable
efforts to assist LGS in entering into a Microsoft Windows CE Development and Testing Agreement (or its equivalent) with Microsoft. 

  

	8.8	ARM shall use reasonable efforts to secure the rights from Microsoft, subject to Microsoft’s rights and interests in the OAL Software to sub-license, to Recipient, the
non-exclusive, non-transferable, worldwide right under Intellectual Property jointly owned by ARM and Microsoft, to copy, use, modify, sell, supply and distribute the OAL Software in conjunction with software licensed from Microsoft. ARM shall use
reasonable efforts to assist LGS in entering into a Microsoft Windows CE Development and Testing Agreement (or its equivalent) with Microsoft. 

  
 ARM7201TDSP Device Licence 
  

	8.9	Except to the extent that such terms and conditions are varied by the terms and conditions of this Agreement, the ARM7201TDSP Device shall be deemed to be an ARM Compliant Product
and the terms of the 1996 Agreement shall apply accordingly. 

  

	8.10	ARM hereby grants, to LGS, under ARM’s Intellectual Property, a worldwide, non-exclusive, perpetual (subject to termination in accordance with the provisions of Clause 13),
non-transferable, licence to use, modify (subject to the provisions of Clause 2.2 of the 1996 Agreement in respect of the ARM720T Core and Piccolo Core), have modified (subject to the provisions of Clause 2.4 of the 1996 Agreement mutatis mutandis
and the provisions of Clause 2.2 of the 1996 Agreement mutatis mutandis in respect of the ARM720T Core and Piccolo Core), design, have designed (subject to the provisions of Clause 2.4 of the 1996 Agreement mutatis mutandis and the provisions of
Clause 2.2 of the 1996 Agreement mutatis mutandis in respect of the ARM720T Core and Piccolo Core) and copy the ARM7201TDSP Transfer Materials for the purpose of exercising the licence granted below; 

  
 ARM hereby grants to LGS under ARM’s Intellectual Property a worldwide,
exclusive, perpetual (subject to termination in accordance with the provisions of Clause 13), transferable licence to use, modify (subject to the provisions of Clause 2.2 of the 1996 Agreement mutatis mutandis in respect of the ARM720T Core and
Piccolo Core), have modified (subject to the provisions of Clause 2.4 of the 1996 Agreement mutatis mutandis and the provisions of Clause 2.2 of the 1996 Agreement mutatis mutandis in respect of the ARM720T Core and Piccolo Core) copy, manufacture,
have manufactured (subject to the provisions of Clause 2.4 of the 1996 Agreement) sell, supply and distribute to third parties the ARM7201TDSP Device and any derivative of the ARM7201TDSP Device created under the licences granted in this Clause.

  

 12 

 Other ARM Deliverables Licence 
  

	8.11	ARM shall, under ARM’s Intellectual Property, grants to LGS a worldwide, non-exclusive, non-transferable, paid-up and perpetual license, with the right to sub-license to
LGS’s Subsidiary, to use, modify, design, have designed and copy the peripheral circuits incorporated in the ARM7201TDSP Device for the purpose of creating, developing, having developed, manufacturing, having manufactured, and selling,
supplying and distributing to any third party, ARM Compliant Products and/or any semiconductor product which incorporates the peripheral circuits incorporated in the ARM7201TDSP Device. 

  
 LG Affiliates’s Licence 
  

	8.12	LGS may exercise the right to include any LG Affiliate as a licencee of ARM provided that: 

  

	 	(i)	such LG Affiliate agrees in writing to be bound by the obligations of LGS and to comply with all the terms and conditions of this Agreement. LGS shall deliver to ARM a copy of the
LG Affiliate’s undertaking within thirty (30) days of the execution of such undertaking; 

  

	 	(ii)	any breach of the terms and conditions of this Agreement by a LG Affiliate shall constitute a breach of this Agreement by LGS; 

  

	 	(iii)	any termination of this Agreement shall be effective in respect of all LG Affiliates. 

  
 LGS Deliverables Licence 
  

	8.13	All right, title and interest in any intellectual property in the LGS Deliverables shall vest in and be owned by LGS. 

  

	8.14	LGS hereby grants, to ARM, a non-exclusive licence to use, copy and modify LGS Deliverables solely for the purpose of developing the ARM7201TDSP Device. 

  

	9.	Confidentiality 

  

	9.1	During the course of this development, ARM and LGS may exchange information which is of a secret or confidential nature and which is neither already known to the recipient nor in
the public domain either at the time of disclosure or subsequently through no fault of the recipient (the “Confidential Information”). ARM Confidential Information shall include but shall not be limited to; (i) the source code for the
Software; and (ii) all underlying ideas, principles and information derived by LGS from observing, studying and testing the functioning of the Software. The party receiving Confidential Information hereunder (the “Recipient”) shall use the
same standard of care, but in any event no less than a reasonable standard of care, to prevent the unauthorised use, dissemination or publication of such Confidential Information, as it uses to protect its own confidential information of a similar
nature. 

  

	9.2	The Recipient is hereby authorised to disclose such of the Confidential Information to third party sub-contractors or consultants as is necessary for the performance by the
sub-contractor or consultant of any of the work under this Agreement that is assigned to it provided always that any such subcontractor or consultant is bound by provisions of confidentiality no less stringent than those provided by Clause 9.1.

  

	9.3	Except as provided by this Agreement the Recipient shall not commercially exploit nor permit others to commercially exploit any Confidential Information. 

 

 13 

	9.4	Except with the other party’s express prior written consent (which shall not be unreasonably withheld), neither party shall make any press announcements or publicise the
contents or existence of this Agreement in any way. 

  

	10.	ARM Warranties and Indemnities 

  

	10.1	Except as expressly provided in this Agreement, the ARM720T Core Transfer Materials, ARM7201TDSP Transfer Materials, Piccolo Core Transfer Materials and Software are supplied
“as is” and ARM makes no representations and gives no warranties express, implied or statutory, including, without limitation, the implied warranties of satisfactory quality or fitness for a particular purpose in respect thereof.

  

	10.2	ARM warrants that; (i) the ARM7201TDSP Transfer Materials shall be consistent and sufficient for a competent semiconductor manufacturer to fabricate the ARM7201TDSP Device which
conforms to the device specification approved by LGS in accordance with the Clause 3.2 and 3.3; (ii) the ARM720T Core Transfer Materials shall be consistent and sufficient for a competent semiconductor manufacturer to fabricate the ARM720T Core
which conforms to the functionality specified in the ARM Datasheet Doc. No. ARM DDI (00XX); and (iii) the Piccolo Core Transfer Materials shall be consistent and sufficient for a competent semiconductor manufacturer to fabricate the Piccolo Core
which conforms to the functionality specified in the ARM Datasheet Doc. No. ARM DDI 0089. LGS sole and exclusive remedy for any breach of this warranty shall be for ARM to correct any errors in the ARM Deliverables and deliver such corrected
deliverables to LGS. 

  

	10.3	ARM does not warrant the adequacy of any device specification, approved by LGS, with respect to LGS intended use and ARM shall not be responsible for the circuit performance of the
ARM7201TDSP Device in LGS intended application. 

  

	10.4	ARM shall not be liable for any; 

  

	 	(i)	recoverable or non-recoverable costs incurred, directly or indirectly, in the processing, or manufacture of masks and prototypes, characterisation or manufacture of production
quality silicon in whatever quantity; or 

  

	 	(ii)	defect in the ARM7201TDSP Device caused by a fault in the LGS or LGS agent’s manufacturing process. 

  

	10.5	After the period of sixty (60) days following approval of the prototypes of the ARM7201 Device in accordance with the provisions of Clause 3.6, ARM shall not be liable for any
changes necessary to any layout. 

  

	10.6	LGS acknowledges that the Software cannot be tested in every possible operation, and accordingly ARM does not warrant that the Software will be free from all defects or that there
will be no interruption in its use. ARM warrants for the period of twelve (12) months from the delivery of the Software to LGS that the Software will be complete and exhibit the functionality described in the Specification. LGS’s sole and
exclusive remedy for any breach of the warranty in this Clause 10.6 shall be for ARM, as soon as is reasonably practicable, to correct any errors in the Software and deliver such corrected Software to LGS. 

  

 14 

	10.7	ARM warrants, to LGS, that; 

  

	 	(i)	to ARM’s knowledge (but expressly without having undertaken any searches for prior art) the Intellectual Property in the ARM720T Core Transfer Materials, ARM7201TDSP Transfer
Materials, Piccolo Core Transfer Materials and Software does not infringe any third party copyright, design right, registered design right, trade secret or maskwork right; and 

  

	 	(ii)	as at the date of entering into this Agreement, ARM has not received written notice of any claim, and no actions have been commenced or threatened, against ARM for infringement of
any third party Intellectual Property; and 

  

	 	(iii)	ARM has the right to enter into this Agreement. 

  

	10.8	If any part of the ARM720T Core Transfer Materials, ARM7201TDSP Transfer Materials, Piccolo Core Transfer Materials and Software becomes the subject of a claim brought against LGS
on the issue of infringement of the Intellectual Property of any third party or if the use or licensing of any part of the ARM720T Core Transfer Materials, ARM7201TDSP Transfer Materials, Piccolo Core Transfer Materials and Software is restricted in
any way, then ARM at its option and expense may; 

  

	 	(i)	obtain for LGS the right to continue to use the ARM720T Core Transfer Materials, ARM7201TDSP Transfer Materials, Piccolo Core Transfer Materials and Software;

  

	 	(ii)	replace or modify the ARM720T Core Transfer Materials, ARM7201TDSP Transfer Materials, Piccolo Core Transfer Materials and Software so that they become non-infringing; or

  

	 	(iii)	offer reasonable compensation to LGS for the direct loss suffered by LGS up to a maximum of all sums paid by LGS to ARM under this Agreement. 

  
 ARM shall have no liability under this Clause it the alleged infringement
results from; 
  

	 	(a)	compliance with the LGS requirement specification or the Specification, as the case may be, and such alleged infringement is unavoidable in providing such compliance;

  

	 	(b)	the combination, use or operation of the ARM720T Core Transfer Materials, ARM7201TDSP Transfer Materials, Piccolo Core Transfer Materials and Software in connection or combination
with any equipment, device or software not developed and supplied by ARM and such alleged infringement would have been avoided in the absence of such combination; or 

  

	 	(c)	the modification of the ARM720T Core Transfer Materials, ARM7201TDSP Transfer Materials, Piccolo Core Transfer Materials and Software by the LGS or any third party unless the
modification was made or approved by ARM, 

  

	 	(d)	infringement by any manufacturing process applied to the ARM720T Core Transfer Materials, ARM7201TDSP Transfer Materials, Piccolo Core Transfer Materials and Software.

  

	10.9	The foregoing states the entire liability of ARM for infringement by the Intellectual Property in the ARM Deliverables and Software, of third party Intellectual Property.

  

 15 

	11.	LGS Warranties and Indemnities 

  

	11.1	LGS warrants, to ARM, that; 

  

	 	(i)	to LGS knowledge (but expressly without having undertaken any searches for prior art), the Intellectual Property in the LGS Deliverables does not infringe any third party copyright,
design right, registered design right, maskwork right, or trade secret; and 

  

	 	(ii)	LGS has the right to enter into this Agreement. 

  

	11.2 	If compliance, by ARM, with LGS designs, specifications or instructions, or use, by ARM, of Intellectual Property received from LGS or LGS agent, results in ARM being subject to a
claim for infringement of any Intellectual Property of a third party, LGS, at its option and expense, may; 

  

	 	(i)	obtain for ARM the right to continue to use the LGS Deliverables; 

  

	 	(ii)	replace or modify the LGS Deliverables so that they become non-infringing; or 

  

	 	(iii)	offer reasonable compensation to ARM for the direct loss suffered by ARM up to a maximum of all sums paid by LGS to ARM under this Agreement. 

  

	11.3	The foregoing states the entire liability of LGS for infringement by the Intellectual Property in the LGS Deliverables, of third party Intellectual Property.

  

	12.	Limitation of Liability 

  

	12.1	IN NO EVENT SHALL EITHER PARTY BE LIABLE UNDER THE AGREEMENT FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHETHER SUCH DAMAGES ARE ALLEGED AS A RESULT OF TORTIOUS
CONDUCT OR BREACH OF CONTRACT OR OTHERWISE EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. SUCH DAMAGES SHALL INCLUDE BUT SHALL NOT BE LIMITED TO THE COST OF REMOVAL AND REINSTALLATION OF GOODS, LOSS OF GOODWILL, LOSS OF
PROFITS, LOSS OR USE OF DATA, INTERRUPTION OF BUSINESS OR OTHER ECONOMIC LOSS BUT NOTHING IN THIS CLAUSE SHALL OPERATE TO EXCLUDE LIABILITY FOR DEATH OR PERSONAL INJURY RESULTING FROM EITHER PARTY’S NEGLIGENCE. 

  

	12.2	EACH PARTY’S LIABILITY FOR THE AGGREGATE OF ALL CLAIMS IN ANY WAY ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT SHALL NOT EXCEED THE SUM OF ALL FEES PAID TO ARM BY LGS
UNDER THE PROVISIONS OF THIS AGREEMENT. 

  

	13.	Term and Termination 

  

	13.1	This Agreement shall commence on the Effective Date and shall continue in force until termination in accordance with the provisions of Clause 13.2. 

  

	13.2	Without prejudice to any other right or remedy which may be available to it and except as provided to the contrary elsewhere in this Agreement, either party shall be entitled
summarily to terminate this Agreement by giving written notice to the other; 

  

	 	(i)	If the other party has committed a material breach of any of its obligations hereunder which is not capable of remedy; or 

  

 16 

	 	(ii)	if the other party has committed a material breach of any of its obligations hereunder which is capable of remedy but which has not been remedied within a period of thirty (30) days
following receipt of written notice to do so; or 

  

	 	(iii)	if the other party makes any voluntary arrangement with its creditors or becomes subject to an administration order; or 

  

	 	(iv)	if the other party has an order made against it, or passes a resolution, for its winding-up (except for the purpose of bona fide solvent amalgamation or reconstruction) or has an
encumbrancer take possession or has a receiver or similar officer appointed over a material part of its property or assets. 

  

	13.3	LGS and ARM acknowledge that each and every term and condition of this Agreement has been fully and completely negotiated and such terms and conditions closely related to each
other. In the event that the Korean Governmental authorities, including the Korean Fair Trade Commission, during the review of this Agreement require a modification to one or more of the clauses of this Agreement, ARM shall have the option to
renegotiate the entire Agreement or accept the applicable modification of the Agreement as required by such governmental authorities. 

  

	14.	Effect of Termination 

  

	14.1	Upon termination of this Agreement by ARM In accordance with the provisions of Clause 13.2, the license and rights granted by ARM to LGS hereunder shall terminate. LGS shall, at
ARM’s option, either destroy or return to ARM any Confidential Information, including any copies thereof and any ARM Deliverables in LGS’s possession. Within one month after termination of this Agreement in accordance with this Clause
14.1, LGS will furnish to ARM a certificate signed by a duly authorised officer of LGS that to the best of his or her knowledge, information and belief, LGS has complied with provisions of this Clause. 

  

	14.2	Upon termination of this Agreement, by LGS under the provisions of Clause 13.2; (i) the rights granted to LGS under Clause 8 (except the licence granted under Clause 8.4) shall
survive such termination; (ii) LGS shall be entitled to retain any ARM Deliverables delivered by ARM to LGS prior to such termination; and (iii) ARM shall deliver any then partially completed ARM Deliverables to LGS. The licence granted under Clause
8.4 shall survive only in respect of any semiconductor product which is already under development by LGS at the date of termination under the provisions of this Clause and the survival of such licence shall be subject to a continuing obligation for
LGS to pay the appropriate fee in the event that such product is the subject of a Design Win Event. 

  

	14.3	The provisions of Clauses 1, 5 (to the extent that any payment has accrued and is outstanding) 8, 9, 10, 11, 12, 13, 14 and Schedule 12 shall survive termination of this Agreement.

  

 17 

	15.	General 

  

			
	Notices	  	All notices which are required to be given hereunder shall be in writing and shall be sent to the address of the recipient set out in this Agreement or such other address as the recipient may
designate by notice given in accordance with the provisions of this Clause. Any such notice may be delivered personally, by commercial overnight courier, or facsimile transmission which shall be followed by a hard copy and shall be deemed to have
been served if by hand when delivered, if by commercial overnight courier 48 hours after deposit with such courier, and it by facsimile transmission when transmitted.
		
	Assignment	  	Neither party shall assign or otherwise transfer this Agreement or any of its rights and obligations hereunder whether in whole or in part without the prior written consent of the other, such
consent not to be unreasonably withheld.
		
	Non-association	  	ARM and LGS are independent parties. Neither party’s company nor their employees, consultants, contractors or agents, are agents, employees or joint venturers of the other party, nor do
they have the authority to bind the other party by contract or otherwise to any obligation. Neither party shall represent to the contrary, either expressly, or implicitly.
		
	Waiver	  	Failure by either party to enforce any provision of this Agreement shall not be deemed a waiver of the right to enforce that or any other provision in the future.
		
	Force Majeure	  	ARM shall not be liable to LGS for any delay in or failure to perform its obligations under this Agreement as a result of any cause beyond ARM’s reasonable control, including but not
limited to any industrial dispute or failure by a supplier to deliver a relevant deliverable to ARM on time. If such delay continues for a period of more than ninety (90) days, then either party shall be entitled to terminate this Agreement by
written notice and the provisions of Clause 14.2 shall apply.
		
	Entire Agreement	  	These terms and conditions apply in preference to and supersede any terms and conditions referred to, offered or relied upon by LGS whether in negotiation or at any stage in the dealings
between ARM and LGS with reference to this Agreement. Without prejudice to the generality of the foregoing, ARM will not be bound by any standard or printed terms and conditions furnished by LGS in any of its documents. No amendment to, or
modification of, this Agreement shall be binding unless in writing and signed by a duly authorised representative of both parties.
		
	Severance	  	If any provision of this contract is held invalid, illegal or unenforceable for any reason by any court of competent jurisdiction such provision shall be severed and the remainder of the
provisions shall continue in full force and effect as if this Agreement had been executed with the invalid provisions eliminated. In the event of a holding of invalidity so fundamental as to prevent the accomplishment of the purpose of this
Agreement, ARM and LGS shall immediately commence good faith negotiations to remedy such invalidity.
		
	English Law	  	This Agreement shall be considered as a contract made in England and according to English Law. In the event that ARM commences proceedings against LGS under this Agreement, the parties agree
to submit to the jurisdiction of the Seoul District Court, Korea, for the purpose of hearing and determining

  

 18 

			
	 	  	any disputes arising out of this Agreement. In the event that LGS commence proceedings against ARM under this Agreement, the parties agree to submit to the jurisdiction of the High Court of
Justice, London, England, for the purpose of hearing and determining any disputes arising out of this Agreement.

  
 IN WITNESS WHEREOF the parties
have caused this Agreement to be signed by their duly authorised representative: 
  

									
	ADVANCED RISC MACHINES LIMITED	 	 	 	LG SEMICON CO., LIMITED
					
	BY:	 	 /s/ R.K.Saxby
	 	 	 	BY:	 	 /s/ B. D. Sun

	NAME:	 	 R.K.Saxby
	 	 	 	NAME:	 	 Sun Byung-Don

	TITLE:	 	 President & Ceo
	 	 	 	TITLE:	 	 Executive Vice President

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