Document:

exv4w1

 

Exhibit 4.1

FORM OF COMMON STOCK PURCHASE WARRANT

To Purchase [                    ] Shares of Common Stock of

TRANSMETA CORPORATION

     THIS COMMON STOCK PURCHASE WARRANT (this “Warrant”) certifies that, for value
received, [                    ] (the “Warrant Holder”), is entitled, upon the terms and subject to
the limitations on exercise and the conditions hereinafter set forth, at any time on or after the
date occurring six months after the date hereof (the “Initial Exercise Date”) and on or
prior to 5:00 P.M. New York City time on September 26, 2012 (the “Termination Date”) but
not thereafter, to subscribe for and purchase from Transmeta Corporation, a Delaware corporation
(the “Company”), up to [                    ] shares (the “Warrant Shares”) of common stock,
par value $0.00001 per share, of the Company (the “Common Stock”). The purchase price of
one share of Common Stock (the “Exercise Price”) under this Warrant shall be $9.00, subject
to adjustment hereunder.

1. Definitions.

     “Affiliate” means any person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a Person, as such
terms are used in and construed under Rule 144 under the Securities Act. Any investment fund or
managed account that is managed on a discretionary basis by the same investment manager as the
Warrant Holder will be deemed to be an Affiliate of the Warrant Holder.

     “Business Day” means a day other than a Saturday or Sunday on which banks are open for
business in New York City.

     “Buy-In” has the meaning given to it in Section 2(a).

     “Closing Price” means on any particular date (a) if the Common Stock is then listed or
quoted on a Trading Market, the last reported closing bid price per share of Common Stock on such
date on the Trading Market (as reported by Bloomberg L.P. at 4:15 P.M. (New York City time)), or,
if there is no such price on such date, then the closing bid price on the Trading Market on the
date nearest preceding such date (as reported by Bloomberg L.P. at 4:15 P.M. (New York City time)
for the closing bid price for regular session trading on such day), or (b) if the Common Stock is
not then listed or quoted on a Trading Market and if prices for the Common Stock are then quoted on
the OTC Bulletin Board, the last reported closing bid price per share of Common Stock on such date
(or the nearest preceding date) on the OTC Bulletin Board, or (c) if the Common Stock is not then
listed or quoted on the OTC Bulletin Board and if prices for the Common Stock are then reported in
the Pink Sheets published by Pink Sheets LLC (or a similar organization or agency succeeding to its
functions of reporting prices), the most recent bid price per share of the Common Stock so
reported, or (d) if the shares of Common Stock are not

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publicly traded the fair market value of a share of Common Stock as determined by an appraiser
selected in good faith by the Warrant Holder and reasonably acceptable to the Company.

     “Common Stock” has the meaning given to it in the Preamble.

     “Company” has the meaning given to it in the Preamble.

     “Current Market Price” means, as of any date, the average of the daily Closing Prices
of the Common Stock for the five consecutive Business Days commencing before such date.

     “Distributed Property” has the meaning given to it in Section 8(b).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

     “Exercise Period” means the period commencing on the Initial Exercise Date and ending
on the Termination Date, unless sooner terminated as provided herein.

     “Exercise Price” has the meaning given to it in the Preamble.

     “Fundamental Transaction” has the meaning given to it in Section 9.

     “Initial Exercise Date” has the meaning given to it in the Preamble.

     “Notice of Exercise” has the meaning given to it in Section 2(a).

     “Person” means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind.

     “Registration Statement” means the registration statement on Form S-3 (File No.
333-144476) covering the initial issuance of this Warrant and the issuance of the Warrant Shares
upon exercise of this Warrant.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

     “Subscription Agreement” means that certain Subscription Agreement between the Company
and the Warrant Holder, dated as of September 20, 2007.

     “Termination Date” has the meaning given to it in the Preamble.

     “Trading Day” means (A) a day on which the Common Stock is traded on a Trading Market
(as defined below), or (B) if the Common Stock is not listed on a Trading Market, a day on which
the Common Stock is traded on the over the counter market, as reported by the OTC Bulletin Board,
or (C) if the Common Stock is not quoted on the OTC Bulletin Board, a day on which prices for the
Common Stock are reported in the Pink Sheets published by Pink Sheets LLC (or any similar
organization or agency succeeding to its functions of reporting prices); provided, that in the
event that the Common Stock is not listed, quoted or reported as set forth in (A), (B) and (C)
hereof, then Trading Day shall mean a Business Day.

     “Trading Market” means the following markets or exchanges on which the Common Stock is
listed or quoted for trading on the date in question: the NASDAQ Global Select Market, the NASDAQ
Global Market, The NASDAQ Capital Market, the American Stock Exchange or the New York Stock
Exchange.

     “Volume Weighted Average Price” or “VWAP” means for any date, the price
determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the volume weighted average of the prices per share of the

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Common Stock traded on such date (or the nearest preceding date) on the Trading Market on
which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 A.M. New York City time to 4:00 P.M. New York City time); (b) if the Common Stock is
not then listed or quoted on a Trading Market and if prices for the Common Stock are then quoted on
the OTC Bulletin Board, the volume weighted average of the prices per share of the Common Stock
traded on such date (or the nearest preceding date) on the OTC Bulletin Board; (c) if the Common
Stock is not then listed or quoted on the OTC Bulletin Board and if prices for the Common Stock are
then reported in the Pink Sheets published by Pink Sheets LLC (or a similar organization or agency
succeeding to its functions of reporting prices), the last bid price per share of the Common Stock
so reported on such date (or the most recent bid price if none is reported for such date); or (d)
in all other cases, the fair market value of a share of Common Stock as determined by an
independent appraiser selected in good faith by the Warrant Holder and reasonably acceptable to the
Company.

     “Warrant” has the meaning given to it in the Preamble.

     “Warrant Holder” has the meaning given to it in the Preamble.

     “Warrant Share Delivery Date” has the meaning given to it in Section 2(a).

     “Warrant Shares” has the meaning given to it in the Preamble.

2. Exercise.

     (a) This Warrant may be exercised in whole or in part at any time on or after the Initial
Exercise Date and prior to the Termination Date upon delivery of the notice of exercise form
attached hereto as Appendix A (the “Notice of Exercise”) and payment by cash, certified
check or wire transfer (or, in certain circumstances, by cashless exercise as provided below) for
the aggregate Exercise Price for that number of Warrant Shares then being purchased, to the Company
during normal business hours on any Business Day at the Company’s principal executive offices (or
such other office or agency of the Company as the Company may designate by notice to the Warrant
Holder). The Warrant Shares so purchased shall be deemed to be issued to the Warrant Holder or the
Warrant Holder’s designee, as the record owner of such shares, as of 5:00 P.M. New York City time
on the date on which the aggregate Exercise Price shall have been paid and the completed Notice of
Exercise shall have been delivered. Certificates for the Warrant Shares so purchased, representing
the aggregate number of shares specified in the Notice of Exercise, shall be transmitted by the
Company’s transfer agent by crediting the account of the Warrant Holder’s prime broker with The
Depository Trust Company through its Deposit / Withdrawal At Custodian (“DWAC”) system if
the Company is a participant in such system, and otherwise by physical delivery to the address
specified by the Warrant Holder in the Notice of Exercise, within a reasonable time, not exceeding
three (3) Trading Days after this Warrant shall have been so exercised, including payment of the
aggregate exercise price and the delivery of a completed Notice of Exercise (the “Warrant Share
Delivery Date”). The certificates so delivered shall be in such denominations as may be
requested by the Warrant Holder and shall be registered in the name of the Warrant Holder or such
other name as shall be designated by the Warrant Holder. In addition to any other rights available
to the Warrant Holder, if the Company fails to deliver to the Warrant Holder a certificate or
certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share
Delivery Date, and if after such date the Warrant Holder is required by its broker to purchase (in
an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a
sale by the Warrant Holder of the Warrant Shares which the Warrant Holder anticipated receiving
upon such exercise (a “Buy-In”), then the Company shall (1) pay in cash to the Warrant
Holder the amount by which (x) the Warrant

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Holder’s total purchase price (including customer brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number
of Warrant Shares that the Company was required to deliver to the Warrant Holder in connection with
the exercise at issue times (B) the price at which the sell order giving rise to such purchase
obligation was executed, and (2) at the option of the Warrant Holder, either reinstate the portion
of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored or
deliver to the Warrant Holder the number of shares of Common Stock that would have been issued had
the Company timely complied with its exercise and delivery obligations hereunder. For example, if
the Warrant Holder purchases Common Stock having a total purchase price of $11,000 to cover a
Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate Exercise
Price giving rise to such purchase obligation of $10,000, under clause (1) of the immediately
preceding sentence the Company shall be required to pay the Warrant Holder $1,000. The Warrant
Holder shall provide the Company written notice indicating the amounts payable to the Warrant
Holder in respect to the Buy-In, together with applicable confirmations and other evidence
reasonably requested by the Company. Nothing herein shall limit a Warrant Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief with respect to the Company’s failure to
timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof. Notwithstanding anything herein to the contrary, the
Warrant Holder shall not be required to physically surrender this Warrant to the Company until the
Warrant Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been
exercised in full, in which case, the Holder shall surrender this Warrant to the Company for
cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to
the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total
number of Warrant Shares available hereunder shall have the effect of lowering the outstanding
number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of
Warrant Shares purchased. The Warrant Holder and the Company shall maintain records showing the
number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any
objection to any Notice of Exercise Form within one Business Day of receipt of such notice. In the
event of any dispute or discrepancy, the records of the Warrant Holder shall be controlling and
determinative in the absence of manifest error. The Warrant Holder and any assignee, by acceptance
of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph,
following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares
available for purchase hereunder at any given time may be less than the amount stated on the face
hereof.

     (b) If this Warrant shall have been exercised in part, the Company shall, at its own expense
and at the time of delivery of the certificate or certificates representing Warrant Shares, deliver
to the Warrant Holder a new Warrant evidencing the rights of the Warrant Holder to purchase the
unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other
respects be identical to this Warrant.

     (c) In the event that the Registration Statement is not effective at any time that this
Warrant is exercised and this Warrant is exercised for cash, certified check or wire transfer, (i)
the Warrant Shares issued upon such exercise shall be “restricted securities,” (ii) the stock
certificate evidencing the Warrant Shares shall bear a restrictive legend referring to the
Securities Act, and (iii) as a condition precedent to issuance of the Warrant Shares upon such
exercise, the Warrant Holder shall be required to execute an investment representation statement in
the form provided by the Company as evidence of the Warrant Holder’s qualifications to purchase

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Common Stock in a “private placement” that is exempt from registration pursuant to Section
4(2) of the Securities Act.

     (d) Notwithstanding anything to the contrary herein, the Warrant Holder shall not have the
right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the
extent that after giving effect to such issuance after exercise, the Warrant Holder (together with
the Warrant Holder’s affiliates), as set forth on the applicable Notice of Exercise, would
beneficially own in excess of 4.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to such issuance. For purposes of the foregoing sentence, the
number of shares of Common Stock beneficially owned by the Warrant Holder and its affiliates shall
include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to
which the determination of such sentence is being made, but shall exclude the number of shares of
Common Stock which would be issuable upon (A) exercise of the remaining, nonexercised portion of
this Warrant beneficially owned by the Warrant Holder or any of its affiliates and (B) exercise or
conversion of the unexercised or nonconverted portion of any other securities of the Company
(including, without limitation, any other shares of Common Stock or Warrants) subject to a
limitation on conversion or exercise analogous to the limitation contained herein beneficially
owned by the Warrant Holder or any of its affiliates. Except as set forth in the preceding
sentence, for purposes of this Section 2(d), beneficial ownership shall be calculated in accordance
with Section 13(d) of the Exchange Act, it being acknowledged by the Warrant Holder that the
Company is not representing to the Warrant Holder that such calculation is in compliance with
Section 13(d) of the Exchange Act and the Warrant Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation contained in this
Section 2(d) applies, the determination of whether this Warrant is exercisable (in relation to
other securities owned by the Warrant Holder) and of which portion of this Warrant is exercisable
shall be in the sole discretion of the Warrant Holder, and the submission of a Notice of Exercise
shall be deemed to be the Warrant Holder’s determination of whether this Warrant is exercisable (in
relation to other securities owned by the Warrant Holder) and of which portion of this Warrant is
exercisable, in each case subject to such aggregate percentage limitation, and the Company shall
have no obligation to verify or confirm the accuracy of such determination. For purposes of this
Section 2(d), in determining the number of outstanding shares of Common Stock, the Warrant Holder
may rely on the number of outstanding shares of Common Stock as reflected in the latest of (x) the
Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a more recent public
announcement by the Company or (z) any other notice by the Company or the Company’s transfer agent
setting forth the number of shares of Common Stock outstanding. Upon the written or oral request
of the Warrant Holder, the Company shall within two Trading Days confirm orally and in writing to
the Warrant Holder the number of shares of Common Stock then outstanding. In any case, the number
of outstanding shares of Common Stock shall be determined after giving effect to the conversion or
exercise of securities of the Company, including this Warrant, by the Warrant Holder or its
Affiliates since the date as of which such number of outstanding shares of Common Stock was
reported. The provisions of this Section 2(d) may be waived by the Warrant Holder, at the election
of the Warrant Holder, upon not less than 61 days’ prior notice to the Company, and the provisions
of this Section 2(d) shall continue to apply until such 61st day (or such later date, as determined
by the Warrant Holder, as may be specified in such notice of waiver).

     (e) If during the Exercise Period, the Registration Statement is not then effective, then this
Warrant may also be exercised at such time by means of a “cashless exercise” in which the Warrant
Holder shall surrender and cancel Warrant Shares issuable under this Warrant as

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consideration for receiving a certificate evidencing a number of Warrant Shares determined
according to the following formula:

X = Y (A-B) / A

     where:

	 	 	 
	(X) =
	 	the number of Warrant Shares issuable to Warrant Holder upon the cashless
exercise;

	 	 	 

	(Y) =
	 	the number of Warrant Shares to be surrendered and cancelled under this
Warrant;

	 	 	 

	(A) =
	 	the VWAP on the Trading Day immediately preceding the date of exercise;

	 	 	 

	(B) =
	 	the Exercise Price, as adjusted pursuant to Section 8.

3. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares
shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Warrant
Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay a cash
adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the
Exercise Price.

4. Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without
charge to the Warrant Holder for any issue or transfer tax or other incidental expense in respect
of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company,
and such certificates shall be issued in the name of the Warrant Holder or in such name or names as
may be directed by the Warrant Holder; provided, however, that the Company shall not be required to
pay any tax that may be payable in respect of any transfer involved in the registration of any
certificates for Warrant Shares or the Warrants in a name other than that of the Warrant Holder.
The Warrant Holder shall be responsible for all other tax liability that may arise as a result of
holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

5. Closing of Books. The Company will not close its stockholder books or records in any manner
that prevents the timely exercise of this Warrant pursuant to the terms hereof.

6. Transfer, Division and Combination.

     (a) Subject to compliance with any applicable securities laws and the conditions set forth
herein, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company, together with a written assignment of this
Warrant substantially in the form attached hereto duly executed by the Warrant Holder or its agent
or attorney and funds sufficient to pay any transfer taxes payable upon the making of such
transfer. Upon such surrender and, if required, such payment, the Company shall execute and
deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denomination
or denominations specified in such instrument of assignment, and shall issue to the assignor a new
Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be
cancelled. A Warrant, if properly assigned, may be

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exercised by a new holder for the purchase of Warrant Shares without having a new Warrant
issued.

     (b) This Warrant may be divided or combined with other Warrants upon presentation hereof at
the aforesaid office of the Company, together with a written notice specifying the names and
denominations in which new Warrants are to be issued, signed by the Warrant Holder or its agent or
attorney. Subject to compliance with Section 6(a) as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance with such notice.

     (c) The Company shall prepare, issue and deliver at its own expense (other than transfer
taxes) the new Warrant or Warrants under this Section 6.

     (d) The Company agrees to maintain, at its aforesaid office, books for the registration and
the registration of transfer of the Warrants.

7. No Rights as Stockholder Until Exercise. This Warrant does not entitle the Warrant Holder to
any voting rights or other rights as a stockholder of the Company prior to the exercise hereof.
Upon the surrender of this Warrant, payment of the aggregate Exercise Price (or by means of a
cashless exercise), and delivery of the completed Notice of Exercise, the Warrant Shares so
purchased shall be and be deemed to be issued to such Warrant Holder as the record owner of such
shares as of 5:00 P.M. New York City time on the later of the date of such surrender or payment.

8. Adjustments of Exercise Price and Number of Warrant Shares.

     (a) Stock Dividends and Splits. The number and kind of securities purchasable upon
the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to
time upon any of the following. In the event the Company (i) pays a dividend in shares of Common
Stock or makes a distribution in shares of Common Stock to holders of its outstanding Common Stock,
(ii) subdivides its outstanding shares of Common Stock into a greater number of shares, or (iii)
combines its outstanding shares of Common Stock into a smaller number of shares of Common Stock,
then in each such case (x) the Exercise Price thereafter shall be equal to the product of the
Exercise Price in effect immediately prior to such event multiplied by a fraction, the numerator of
which shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
before such event and the denominator of which shall be the number of shares of Common Stock
outstanding after such event and (y) the number of Warrant Shares thereafter issuable upon exercise
of this Warrant shall be equal to the product of the number of Warrant Shares issuable upon
exercise of this Warrant immediately prior to such event multiplied by a fraction, the numerator of
which shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
after such event and the denominator of which shall be the number of shares of Common Stock
(excluding treasury shares, if any) outstanding before such event. Any such adjustment shall
become effective immediately after the record date for the determination of stockholders entitled
to receive such dividend or distribution and shall become effective immediately after the effective
date in the case of a subdivision, or combination.

     (b) Offerings of Other Securities or Assets to Common Stock Holders. If the Company,
at any time prior to the Termination Date, shall distribute to all holders of Common Stock for no
consideration evidence of its indebtedness or assets or rights or warrants to subscribe for or
purchase any security (in each case, “Distributed Property”), then upon any exercise of this
Warrant that occurs after the record date fixed for determination of stockholders

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entitled to receive such distribution, the Warrant Holder shall be entitled to receive, in
addition to the Warrant Shares otherwise issuable upon such exercise (if applicable), the
Distributed Property that the Warrant Holder would have been entitled to receive in respect of such
number of Warrant Shares had the Warrant Holder been the record holder of such Warrant Shares
immediately prior to such record date.

9. Reorganization, Certain Distributions, Reclassification, Merger, Consolidation or Disposition of
Assets. In the event the Company reorganizes its capital, reclassifies its capital stock, pays a
dividend in, or makes a distribution of, shares of its capital stock (other than Common Stock) to
holders of its outstanding Common Stock, consolidates or merges with or into another corporation
(where the Company is not the surviving corporation or where there is a change in or distribution
with respect to the Common Stock of the Company), or sells, transfers or otherwise disposes of its
property, assets or business to another corporation and, as a result thereof shares of common stock
of the successor or acquiring corporation, or any cash, shares of capital stock or other securities
or property of any nature whatsoever (including warrants or other subscription or purchase rights),
are to be received by or distributed to the holders of Common Stock of the Company, then the
Warrant Holder shall have the right thereafter to receive upon exercise of this Warrant, in lieu of
each Warrant Share issuable upon exercise of this Warrant, the kind and amount of cash, shares,
securities and property that such Warrant Holder would have owned or been entitled to receive upon
the occurrence of such event in respect of a Warrant Share outstanding immediately prior to such
event. Any such adjustment shall become effective immediately after the earlier of the record date
for the determination of stockholders relating to such event or the effective date of such event.
In case of any such reorganization, reclassification, merger, consolidation or disposition of
assets, the successor or acquiring corporation (if other than the Company) shall expressly assume
the obligations hereunder, subject to such modifications as may be deemed appropriate (as
determined in good faith by resolution of the Board of Directors of the Company) in order to
provide for adjustments of Warrant Shares for which this Warrant is exercisable which shall be as
nearly equivalent as practicable to the adjustments provided for in this Section 9. For purpose of
this Section 9, “common stock of the successor or acquiring corporation” shall include stock of
such corporation of any class that is not preferred as to dividends or assets over any other class
of stock of such corporation and that is not subject to redemption and shall also include any
evidences of indebtedness, shares of stock or other securities that are convertible into or
exchangeable for any such stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe for or purchase any
such stock. Notwithstanding anything to the contrary, in the event of a consolidation or merger
with or into another corporation in which the holders of the Company’s voting power immediately
prior to such consolidation or merger do not continue after such consolidation or merger to hold
the voting power of the surviving entity or entities necessary to elect a majority of the members
of the board of directors (or their equivalent if other than a corporation), or a sale, transfer
or disposition of all or substantially all of the Company’s property, assets or business to another
corporation (each, a “Fundamental Transaction”) that is (1) an all cash transaction, (2) a
“Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (3) a Fundamental
Transaction involving a person or entity not traded on a national securities exchange, the NASDAQ
Global Select Market, the NASDAQ Global Market, or The NASDAQ Capital Market, the Company or any
successor entity shall pay at the Warrant Holder’s option, exercisable at any time concurrently
with or within 30 days after the consummation of the Fundamental Transaction, an amount of cash
equal to the value
of the remaining unexercised portion of this Warrant as determined, using the
remaining term of this Warrant as of the date of

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consummation of the applicable Fundamental Transaction, in accordance with the Black-Scholes Option
Pricing Model obtained from the “OV” function on Bloomberg L.P. using (i) a price per share of
Common Stock equal to the VWAP of the Common Stock for the Trading Day immediately preceding the
date of consummation of the applicable Fundamental Transaction, (ii) a risk-free interest rate
corresponding to the U.S. Treasury rate for a period equal to the remaining term of this Warrant as
of the date of consummation of the applicable Fundamental Transaction and (iii) an expected
volatility equal to the 100 day volatility obtained from the “HVT” function on Bloomberg L.P.
determined as of the Trading Day immediately following the public announcement of the applicable
Fundamental Transaction. The foregoing provisions of this Section 9 shall similarly apply to
successive reorganizations, reclassifications, mergers, consolidations or disposition of assets.

10. Voluntary Adjustment by the Company. The Company may at any time during the term of this
Warrant, in its sole discretion, reduce the then current Exercise Price to any amount and for any
period of time deemed appropriate by the Board of Directors of the Company.

11. Notice of Adjustment. Whenever the number of Warrant Shares or number or kind of securities or
other property purchasable upon the exercise of this Warrant or the Exercise Price is adjusted, as
herein provided, the Company shall give notice thereof to the Warrant Holder, which notice shall
state the number of Warrant Shares (and other securities or property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and other securities or property)
after such adjustment, setting forth a brief statement of the facts requiring such adjustment and
setting forth the computation by which such adjustment was made.

12. Notice of Corporate Action. If at any time:

     (a) the Company shall take a record of the holders of its Common Stock for the purpose of
entitling them to receive a dividend or other distribution, or any right to subscribe for or
purchase any evidence of its indebtedness, any shares of stock of any class or any other securities
or property, or to receive any other right; or

     (b) there shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or merger of the Company
with, or any sale, transfer or other disposition of all or substantially all the property, assets
or business of the Company to, another corporation; or,

     (c) there shall be a voluntary or involuntary dissolution, liquidation or winding up of the
Company;

     then, in any one or more of such cases, the Company shall give to the Warrant Holder (i) at
least 10 Business Days prior written notice of the date on which a record date shall be selected
for such dividend, distribution or right or for determining rights to vote in respect of any such
reorganization, reclassification, merger, consolidation, sale, transfer, disposition, liquidation
or winding up, and (ii) in the case of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding up at least 10
Business Days prior written notice of the date when the same shall take place. Such notice shall
also specify (i) the date on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall be entitled to any such
dividend, distribution or right, and the amount and character thereof, and (ii) the date on which
any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any such time is to be
fixed, as of which the holders of Common Stock shall be entitled to exchange their Common

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Stock for securities or other property deliverable upon such disposition, dissolution,
liquidation or winding up.

13. Authorized Shares. The Company covenants that during the period the Warrant is outstanding, it
will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide
for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.
The Company further covenants that its issuance of this Warrant shall constitute full authority to
its officers who are charged with the duty of executing stock certificates to execute and issue the
necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this
Warrant. The Company will take all such commercially reasonable action as may be necessary to
assure that such Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the Trading Market upon which the Common
Stock may be listed.

14. Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by
the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation
of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft
or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the
Warrant, shall not include the posting of any bond), and, in the case of mutilation, upon surrender
and cancellation of such Warrant or stock certificate, the Company will make and deliver a new
Warrant or stock certificate dated as of such cancellation, in lieu of such Warrant or stock
certificate.

15. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action
or the expiration of any right required or granted herein shall be a Saturday, Sunday or a legal
holiday, then such action may be taken or such right may be exercised on the next succeeding day
not a Saturday, Sunday or legal holiday.

16. Miscellaneous.

     (a) Interpretation, Governing Law, Dispute Resolution. All issues regarding
interpretation of this Warrant, governing law and dispute resolution shall be governed by the terms
of the Subscription Agreement.

     (b) Restrictions. The Warrant Holder acknowledges that the Warrant Shares acquired
upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by
state and federal securities laws.

     (c) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise
any right hereunder by the Warrant Holder shall operate as a waiver of such right or otherwise
prejudice the Warrant Holder’s rights, powers or remedies. If the Company willfully and knowingly
fails to comply with any provision of this Warrant and such failure results in any material damages
to the Warrant Holder, the Company shall pay to the Warrant Holder such amounts as shall be
sufficient to cover any costs and expenses incurred by the Warrant Holder in collecting any amounts
due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder,
including, but not limited to, reasonable attorneys’ fees.

     (d) Notices. Any notice, request or other document required or permitted to be given
or delivered to the Warrant Holder by the Company shall be delivered in accordance with the notice
provisions of the Subscription Agreement.

     (e) Limitation of Liability. No provision hereof, in the absence of any affirmative
action by the Warrant Holder to exercise this Warrant or purchase Warrant Shares, and no
enumeration herein of the rights or privileges of the Warrant Holder, shall give rise to any

10

 

liability of Warrant Holder for the purchase price of any Common Stock or as a stockholder of
the Company, whether such liability is asserted by the Company or by creditors of the Company.

     (f) Remedies. Warrant Holder, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific performance of its
rights under this Warrant. The Company agrees that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant
and hereby waive the defense in any action for specific performance that a remedy at law would be
adequate.

     (g) Successors and Assigns. Subject to applicable securities laws, this Warrant and
the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the
successors of the Company and the successors and permitted assigns of the Warrant Holder.

     (h) Amendment and Waiver. This Warrant may be modified or amended only with the
written consent of the Company and the Warrant Holder.

     (i) Severability. Wherever possible, each provision of this Warrant shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provisions or the remaining provision of this Warrant.

     (j) Headings. The headings in this Warrant are for the convenience of reference only
and shall not, for any purpose, be deemed a part of this Warrant.

*********************

11

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of September
___, 2007.

	 	 	 	 	 
	 	TRANSMETA CORPORATION,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

APPENDIX A

NOTICE OF EXERCISE

TO: TRANSMETA CORPORATION

(1) The
undersigned hereby elects to purchase [                    ] Warrant Shares of Transmeta Corporation
pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price
in full, together with all applicable transfer taxes, if any.

(2) Payment for the Warrant Shares shall take the form of (check only one of the following boxes):

	 	 	 	o in lawful money of the United States in the amount of $                                        ; or

	 	 	 	o the surrender and cancellation of such number of Warrant Shares issuable under
the Warrant as is necessary to purchase the number of Warrant Shares specified in paragraph
(1) above pursuant to the cashless exercise procedure set forth in Section 2(d) of the
Warrant.

(3) Please issue a certificate or certificates representing said Warrant Shares in the name of the
undersigned or in such other name as is specified below:

	 	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	 

(4) The Warrant Shares shall be delivered to the following:

	 	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	 

(5) By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company
that in giving effect to the exercise evidenced hereby the Holder will not beneficially own in
excess of the number of shares of Common Stock (as determined in accordance with Section 13(d) of
the Securities Exchange Act of 1934) permitted to be owned under Section 2(d) of this Warrant to
which this notice relates.

*********************

 

 

     IN WITNESS WHEREOF, the undersigned has caused this Notice of Exercise to be duly executed as
of                     ,
20__.

	 	 	 	 	 
	 	 	 
	 	By: 	 	 
	 	 	Name: 	 	 
	 	 	Title: 	 	 

 

 

APPENDIX B

ASSIGNMENT FORM

(To assign the foregoing Warrant, execute this form and supply required information. Do not
use this form to exercise the Warrant.)

     FOR VALUE RECEIVED, the right and obligations represented by the foregoing Warrant to purchase                      shares of Common Stock to which the within Warrant relates are hereby assigned to

	 	 	 
	 
 

	 	whose address is 
	 
	 	 
	 
 

	 	  
	 
	 	 
	 
 

	 	  

The undersigned hereby appoints                                                             
 attorney to transfer said right on
the books
of the Company with full power of substitution in the premises.

	 	 	 	 	 
	 	 	 
	 	By: 	 	 
	 	 	Name:  	 	 
	 	 	Address: 	 	 
	 	 	 	 	 

	 	 	 
	Signature Guaranteed:
	 	 
	 

	 	 

NOTE: This signature to this Assignment Form must correspond with the name as it appears on the
face of the Warrant, without alteration or enlargement or any change whatsoever, and must be
guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign the foregoing
Warrant.exv10w1

 

Exhibit 10.1

SUBSCRIPTION AGREEMENT

Transmeta Corporation

2540 Mission College Boulevard

Santa Clara, CA 95054

The undersigned (the “Investor”) hereby confirms its agreement with you as follows:

1. This Subscription Agreement (this “Agreement”) is made as of the date set forth below
between Transmeta Corporation, a Delaware corporation (the “Company”), and the Investor.

2. The Company has authorized the sale and issuance to certain investors of up to an aggregate of
2,000,000 units (the “Units”), each consisting of (i) one share (each, a “Share”
and collectively, the “Shares”) of its common stock, par value $0.00001 per share (the
“Common Stock”), and (ii) one warrant (each, a “Warrant” and collectively, the
“Warrants”) to purchase 0.5 (the “Warrant Ratio”) shares of Common Stock, subject
to adjustment by the Company’s Board of Directors, or a committee thereof, for a purchase price of
$6.40 per Unit (the “Purchase Price”). The shares of Common Stock issuable upon exercise
of the Warrants are referred to herein as “Warrant Shares” and, together with the Units,
the Shares and the Warrants, are collectively referred to herein as the “Securities.”

3. The offering and sale of the Securities (the “Offering”) are being made pursuant to (a)
the Company’s effective registration statement on Form S-3 (Registration No. 333-144476) (including
the prospectus contained therein (the “Base Prospectus”)) filed with the Securities and
Exchange Commission (the “Commission”) (which, together with all amendments or supplements
thereto, is referred to herein as the “Registration Statement”), (b) if applicable, certain
“free writing prospectuses” (as that term is defined in Rule 405 under the Securities Act of 1933)
that have been or will be filed with the Commission and delivered to the Investor on or prior to
the date hereof, and (c) a Prospectus Supplement containing certain supplemental information
regarding the Securities and terms of the Offering that will be filed with the Commission (the
“Prospectus Supplement”) and delivered to the Investor (or made available to the Investor
by the filing by the Company of an electronic version thereof with the Commission) along with the
Company’s counterpart to this Agreement.

4. The Company and the Investor agree that the Investor will purchase from the Company and the
Company will issue and sell to the Investor the Units set forth below for the aggregate purchase
price set forth below. The Units shall be purchased pursuant to the Terms and Conditions for
Purchase of Units attached hereto as Annex I and incorporated herein by this reference as
if fully set forth herein. The Investor acknowledges that the Offering is not being underwritten
by the placement agent (the “Placement Agent”) named in the Prospectus Supplement and that
there is no minimum offering amount. The Investor acknowledges that the Company intends to enter
into subscription agreements in substantially the same form as this Agreement with certain other
investors and intends to offer and sell such other investors Units in the Offering pursuant to the
Registration Statement.

5. The manner of settlement of the Shares included in the Units purchased by the Investor shall be
determined by such Investor as follows:

Delivery by electronic book-entry at The Depository Trust Company (“DTC”),
registered in the Investor’s name and address as set forth below, and released by Mellon
Investor Services L.L.C., the Company’s transfer agent (the “Transfer Agent”), to
the Investor at the Closing. NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF
THIS AGREEMENT BY THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL:

-1-

 

	 	(I)	 	DIRECT THE BROKER-DEALER AT WHICH THE ACCOUNT OR ACCOUNTS TO BE CREDITED
WITH THE SHARES ARE MAINTAINED TO SET UP A DEPOSIT/WITHDRAWAL AT CUSTODIAN
(“DWAC”) INSTRUCTING THE TRANSFER AGENT TO CREDIT SUCH ACCOUNT OR ACCOUNTS
WITH THE SHARES, AND
	 
	 	(II)	 	IN ACCORDANCE WITH SECTION 3.3(a) OF THE TERMS AND CONDITIONS ATTACHED
HERETO AS ANNEX I, REMIT BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE
PURCHASE PRICE FOR THE UNITS BEING PURCHASED BY THE INVESTOR TO THE FOLLOWING
ACCOUNT:

Wells Fargo Bank

Bank ID: 121000248

Account number: 4172564379

IT IS THE INVESTOR’S RESPONSIBILITY TO (A) MAKE THE NECESSARY WIRE TRANSFER OR CONFIRM THE
PROPER ACCOUNT BALANCE IN A TIMELY MANNER AND (B) ARRANGE FOR SETTLEMENT BY WAY OF DWAC IN A TIMELY
MANNER. IF THE INVESTOR DOES NOT DELIVER THE AGGREGATE PURCHASE PRICE FOR THE UNITS OR DOES NOT
MAKE PROPER ARRANGEMENTS FOR SETTLEMENT IN A TIMELY MANNER, THE UNITS MAY NOT BE DELIVERED AT
CLOSING TO THE INVESTOR OR THE INVESTOR MAY BE EXCLUDED FROM THE CLOSING ALTOGETHER.

6. The executed Warrant representing the Warrants included in the Units purchased by the Investor
shall be delivered in accordance with the Terms and Conditions for Purchase of Units attached
hereto as Annex I.

7. The Investor represents that, except as set forth below, (a) it has had no position, office or
other material relationship within the past three years with the Company or any persons known to it
to be affiliates of the Company, (b) it is not a, and has no direct or indirect affiliation or
association with any, NASD member or an Associated Person (as such term is defined under Section
1011 of the NASD Membership and Registration Rules) as of the date hereof, and (c) neither the
Investor nor any group of investors (as identified in a public filing made with the Commission) of
which the Investor is a part in connection with the Offering of the Units, acquired, or obtained
the right to acquire, 20% or more of the Common Stock (or securities convertible into or
exercisable for Common Stock) or the voting power of the Company on a post-transaction basis.
Exceptions:

 
 (If no exceptions, write “none.” If left blank, response will be deemed to be “none.”)

8. The Investor represents that it has received (or otherwise had made available to it by the
filing by the Company of an electronic version thereof with the Commission) the final Base
Prospectus, dated July 20, 2007, the documents incorporated by reference therein, and any free
writing prospectus (collectively, the “Disclosure Package”), prior to or in connection with
the receipt of this Agreement, and that the Investor understands that it will receive the
Prospectus Supplement (or otherwise have made available to it by the filing by the Company of an
electronic version thereof with the Commission) together with the Company’s counterpart of this
Agreement.

9. No offer by the Investor to buy Units will be accepted and no part of the Purchase Price will be
delivered to the Company until the Company has accepted such offer by countersigning a copy of this
Agreement, and any such offer may be withdrawn or revoked, without obligation or commitment of any
kind, at any time prior to the Company (or the Placement Agent on behalf of the Company) sending
(orally, in writing, or by electronic mail) notice of its acceptance of such offer. An indication
of interest will involve no obligation or commitment of any kind until this Agreement is accepted
and countersigned by or on behalf of the Company.

-2-

 

Number of Units:                                                                                 

Purchase Price Per Unit: $         
                        
                                

Aggregate Purchase Price: $         
                
                                    

     Please confirm that the foregoing correctly sets forth the agreement between us by signing in
the space provided below for that purpose.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Dated as of: September 20, 2007
 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	INVESTOR
 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Print Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Address: 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

[Signature Page — Subscription Agreement]

 

 

Agreed and Accepted

this 20th day of September, 2007:

	 	 	 	 	 
	TRANSMETA CORPORATION

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

[Signature Page — Subscription Agreement]

 

 

ANNEX I

TERMS AND CONDITIONS FOR PURCHASE OF UNITS

All capitalized terms not otherwise defined in this Annex I shall have the meanings ascribed
thereto in the Subscription Agreement to which this Annex I is attached.

     1. Authorization and Sale of the Units. Subject to the terms and conditions of this
Agreement, the Company has authorized the sale of the Units, which consist of the Shares and the
Warrants.

     2. Agreement to Sell and Purchase the Units; Placement Agent.

          2.1 At the Closing (as defined in Section 3.1), the Company will sell to the Investor,
and the Investor will purchase from the Company, upon the terms and conditions set forth herein,
the number of Units set forth on the last page of this Agreement to which these Terms and
Conditions for Purchase of Units are attached as Annex I (the “Signature Page”) for
the aggregate purchase price therefor set forth on the Signature Page.

          2.2 The Company proposes to enter into substantially this same form of Subscription Agreement
with certain other investors (the “Other Investors”) and expects to complete sales of some
or all of the remaining Units to them as part of the Offering. The Investor and the Other
Investors are hereinafter sometimes collectively referred to as the “Investors,” and this
Agreement and the Subscription Agreements executed by the Other Investors are hereinafter sometimes
collectively referred to as the “Agreements.”

          2.3 The Investor acknowledges that the Company intends to pay A.G. Edwards & Sons, Inc. (the
“Placement Agent”) a fee (the “Placement Fee”) in respect of the sale of Units to
the Investor.

          2.4 The Company has entered into a Placement Agency Agreement (the “Placement
Agreement”) with the Placement Agent that contains certain representations, warranties,
covenants and agreements of the Company in Sections 3 and 4 thereof that may be relied upon by the
Investor. The Investors shall be express intended third party beneficiaries of such
representations, warranties, covenants and agreements contained in Section 3 of the Placement
Agreement. A copy of the Placement Agreement is available to the Investor upon request.

     3. Closings and Delivery of the Units and Funds.

          3.1 Closing. Subject to the satisfaction of the conditions set forth in Section 3.2
below, the completion of the purchase and sale of the Units (the “Closing”) will occur at a
place and time (the “Closing Date”), which is expected to occur on or about September 26,
2007 but shall not be later than 5:00 p.m., New York time, on October 3, 2007, to be specified by
the Company and the Placement Agent, and of which the Investor will be notified in advance by the
Placement Agent. At the Closing and in accordance with paragraph 5 of the Subscription Agreement:
(a) the Company will cause the Transfer Agent to deliver to the Investor the number of Shares
included in the Units set forth on the Signature Page registered in the name of the Investor or, if
so indicated on the Investor Questionnaire attached hereto as Exhibit A, in the name of a
nominee designated by the Investor, (b) the Company shall cause to be delivered to the Investor a
Warrant to purchase a number of whole Warrant Shares determined by multiplying the number of Shares
included in the Units set forth on the signature page by the Warrant Ratio and rounding down to the
nearest whole number, and (c) the aggregate purchase price for the Units being purchased by the
Investor will be delivered by or on behalf of the Investor to the Company.

          3.2 (a) Conditions to the Company’s Obligations. The Company’s obligation to issue
and sell the Units to the Investor will be subject to (i) the receipt by the Company of the
aggregate purchase price for the Units being purchased hereunder as set forth on the Signature Page
and (ii) the accuracy

I-1

 

of the representations and warranties made by the Investor in this Agreement and the
fulfillment of those undertakings of the Investor to be fulfilled prior to the Closing Date.

               (b) Conditions to the Investor’s Obligations. The Investor’s obligation to purchase
the Units will be subject to the condition that the Placement Agent shall not have: (i) terminated
the Placement Agreement pursuant to the terms thereof or (ii) determined that the conditions to the
closing in the Placement Agreement have not been satisfied. The Investor’s obligations are
expressly not conditioned on the purchase by any or all of the Other Investors of the remaining
Units that they have agreed to purchase from the Company.

          3.3 Delivery of Funds by Electronic Book-Entry at The Depository Trust Company.

               No later than one (1) business day after the execution of this Agreement by the Investor
and the Company, the Investor shall remit by wire transfer the amount of funds equal to the
aggregate purchase price for the Units being purchased by the Investor to the following account
designated by the Company and the Placement Agent:

Wells Fargo Bank

Bank ID: 121000248

Account number: 4172564379

          3.4 Delivery of Shares by Electronic Book-Entry at The Depository Trust Company.

               No later than one (1) business day after the execution of this Agreement by the Investor
and the Company, the Investor shall direct the broker-dealer at which the account or accounts
to be credited with the Shares included in the Units being purchased by such Investor are
maintained, which broker/dealer shall be a DTC participant, to set up a Deposit/Withdrawal at
Custodian (“DWAC”) instructing Mellon Investor Services L.L.C., the Company’s transfer
agent, to credit such account or accounts with the Shares by means of an electronic book-entry
delivery. Such DWAC shall indicate the settlement date for the deposit of the Shares, which date
shall be provided to the Investor by the Placement Agent. Simultaneously with the delivery to the
Company by the Investor of the funds Section 3.3 above, the Company shall direct its
transfer agent to credit the Investor’s account or accounts with the Shares pursuant to the
information contained in the DWAC.

     4. Representations, Warranties and Covenants of the Investor.

          4.1 The Investor represents and warrants to, and covenants with, the Company that: (a) the
Investor is knowledgeable, sophisticated and experienced in making, and is qualified to make
decisions with respect to, investments in shares presenting an investment decision like that
involved in the purchase of the Units, including investments in securities issued by the Company
and investments in comparable companies, and has requested, received, reviewed and considered all
information it deemed relevant in making an informed decision to purchase the Units; (b) the
Investor has answered all questions on the Signature Page and the Investor Questionnaire for use in
preparation of the Prospectus Supplement and the answers thereto are true and correct as of the
date hereof and will be true and correct as of the Closing Date; and (c) the Investor, in
connection with its decision to purchase the number of Units set forth on the Signature Page, is
relying only upon the Disclosure Package, the Prospectus Supplement, and the representations and
warranties of the Company contained herein and in Section 3 of the Placement Agreement.

I-2

 

          4.2 The Investor acknowledges, represents and agrees that no action has been or will be taken
in any jurisdiction outside the United States by the Company or the Placement Agent that would
permit an offering of the Units, or possession or distribution of offering materials in connection
with the issue of the Units in any jurisdiction outside the United States where action for that
purpose is required. The Investor, if outside the United States, will comply with all applicable
laws and regulations in each foreign jurisdiction in which it purchases, offers, sells or delivers
Units or has in its possession or distributes any offering material, in all cases at its own
expense. The Placement Agent is not authorized to make and has not made any representation or use
of any information in connection with the issue, placement, purchase and sale of the Units, except
as set forth or incorporated by reference in the Disclosure Package or the Prospectus Supplement.

          4.3 The Investor further represents and warrants to, and covenants with, the Company that: (a)
the Investor has full right, power, authority and capacity to enter into this Agreement and to
consummate the transactions contemplated hereby and has taken all necessary action to authorize the
execution, delivery and performance of this Agreement; and (b) this Agreement constitutes a valid
and binding obligation of the Investor enforceable against the Investor in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights
generally and except as enforceability may be subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law).

          4.4 The Investor understands that nothing in this Agreement, the Disclosure Package, the
Prospectus Supplement or any other materials presented to the Investor in connection with the
purchase and sale of the Units constitutes legal, tax or investment advice. The Investor has
consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed
necessary or appropriate in connection with its purchase of Units.

          4.5 The Investor represents and warrants that, since the date on which the Placement Agent
first contacted such Investor about the Offering, the Investor has not engaged in any transactions
in the securities of the Company (including, without limitation, any Short Sales (as defined below)
involving the Company’s securities). The Investor covenants that it will not engage in any
transactions in the securities of the Company (including Short Sales) prior to the time that the
transactions contemplated by this Agreement are publicly disclosed. The Investor agrees that it
will not use any of the Units acquired pursuant to this Agreement to cover any short position in
the Common Stock if doing so would be in violation of applicable securities laws. For purposes
hereof, “Short Sales” include, without limitation, all “short sales” as defined in Rule 200
promulgated under Regulation SHO under the Securities Exchange Act of 1934 (the “Exchange
Act”), whether or not against the box, and all types of direct and indirect stock pledges,
forward sales contracts, options, puts, calls, short sales, swaps, “put equivalent positions” (as
defined in Rule 16a-1(h) under the Exchange Act) and similar arrangements (including on a total
return basis), and sales and other transactions through non-U.S. broker dealers or foreign
regulated brokers.

     5. Survival of Representations, Warranties and Agreements; Third Party Beneficiary.
Notwithstanding any investigation made by any party to this Agreement or by the Placement Agent,
all covenants, agreements, representations and warranties made by the Company and the Investor
herein will survive the execution of this Agreement, the delivery to the Investor of the Units
being purchased and the payment therefor. The Placement Agent shall be a third party beneficiary
with respect to the representations, warranties and agreements of the Investor in Section 4 hereof.

     6. Notices. All notices, requests, consents and other communications hereunder will be in
writing, will be mailed (a) if within the domestic United States by first-class registered or
certified airmail, or nationally recognized overnight express courier, postage prepaid, or by
facsimile or (b) if delivered from outside the United States, by International Federal Express or
facsimile, and will be deemed given (i) if delivered by first-class registered or certified mail
domestic, three business days after so mailed, (ii) if delivered by nationally recognized overnight
carrier, one business day after so mailed, (iii) if delivered by International Federal Express,

I-3

 

two business days after so mailed, and (iv) if delivered by facsimile, upon electric
confirmation of receipt and will be delivered and addressed as follows:

               (a) if to the Company, to:

Transmeta Corporation

2540 Mission College Boulevard

Santa Clara, CA 95054

Attention: John O’Hara Horsley

Phone: (408) 919-3000

Telecopy: (408) 919-6407

with copies to:

Fenwick & West LLP

801 California Street

Mountain View, CA 94041

Attention: Mark A. Leahy

Phone: (650) 988-8500

Telecopy: (650) 938-5200

               (b) if to the Investor, at its address on the Signature Page hereto, or at such
other address or addresses as may have been furnished to the Company in writing.

     7. Changes. This Agreement shall not be modified or amended except pursuant to an instrument
in writing signed by the Company and the Investor.

     8. Headings. The headings of the various sections of this Agreement have been inserted for
convenience of reference only and will not be deemed to be part of this Agreement.

     9. Severability. In case any provision contained in this Agreement should be invalid, illegal
or unenforceable in any respect, the validity, legality and enforceability of the remaining
provisions contained herein will not in any way be affected or impaired thereby.

     10. Governing Law; Jurisdiction. This Agreement will be governed by, and construed in
accordance with, the internal laws of the State of New York, without giving effect to the
principles of conflicts of law that would require the application of the laws of any other
jurisdiction. Any legal action, suit or proceeding arising out of or relating to this Agreement,
the Placement Agreement or the transactions contemplated hereby or thereby shall only be
instituted, heard and adjudicated (excluding appeals) only in a state or federal court located in
New York, and each party hereto knowingly, voluntarily and intentionally waives any objection which
such party may now or hereafter have to the laying of the venue of any such action, suit or
proceeding, and irrevocably submits to the exclusive personal jurisdiction of any such court in any
such action, suit or proceeding. Service of process in connection with any such action, suit or
proceeding may be served on each party hereto anywhere in the world by the same methods as are
specified for the giving of notices under this Agreement.

     11. Counterparts. This Agreement may be executed in two or more counterparts, each of which
will constitute an original, but all of which, when taken together, will constitute but one
instrument, and will become effective when one or more counterparts have been signed by each party
hereto and delivered to the other parties. The Company and the Investor acknowledge and agree that
the Company shall deliver its counterpart to the Investor along with the Prospectus Supplement (or
the filing by the Company of an electronic version thereof with the Commission).

I-4

 

     12. Confirmation of Sale. The Investor acknowledges and agrees that such Investor’s receipt
of the Company’s counterpart to this Agreement, together with the Prospectus Supplement (or the
filing by the Company of an electronic version thereof with the Commission), shall constitute
written confirmation of the Company’s sale of Units to such Investor.

     13. Termination. In the event that the Placement Agreement is terminated by the Placement
Agent pursuant to the terms thereof, this Agreement shall terminate without any further action on
the part of the parties hereto.

     14. Entire Agreement. This Agreement, and the applicable provisions of this Placement
Agreement, constitute the entire agreement between the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements and understandings between such parties with
respect to such subject matter.

     15. No Assignment. This Agreement shall not be assigned by any party hereto, without the
express prior written consent of the Company, the Investor and the Placement Agent.

I-5

 

Exhibit A

INVESTOR QUESTIONNAIRE

     Pursuant to Section 3 of Annex I to this Agreement, please provide us with the
following information:

	1.	 	The exact name that your Shares and Warrants are to be registered
in. You may use a nominee name if appropriate:	 	 
	 
	2.	 	The relationship between the Investor and the registered holder
listed in response to item 1 above:	 	 
	 
	3.	 	The mailing address of the registered holder listed in response to
item 1 above:	 	 
	 	 	 	 	 
	 	 	 	 	 
	 
	4.	 	The Social Security Number or Tax Identification Number of the
registered holder listed in response to item 1 above:	 	 
	 
	5.	 	Name of DTC Participant (broker-dealer at which the account or
accounts to be credited with the Shares are maintained)	 	 
	 
	6.	 	DTC Participant Number	 	 
	 
	7.	 	Name of Account at DTC Participant being credited with the Shares	 	 
	 
	8.	 	Account Number at DTC Participant being credited with the Shares	 	 

I-6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]