Document:

Intellectual Property Transfer and License Agreement dated as of Sept 28, 2006

 Exhibit 10.1 

CONFIDENTIAL TREATMENT REQUESTED - CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE
COMMISSION. 
  *** INDICATES CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

INTELLECTUAL PROPERTY TRANSFER AND LICENSE AGREEMENT 

relating to 
 the
transfer, assignment and licensing of intellectual property and know-how 
 between 

Koninklijke Philips Electronics N.V. 

and 
 Philips
Semiconductors International B.V. 
 Dated 28 September 2006 

 

 

					
	Contents	  	
	1	  	INTERPRETATION AND DEFINITIONS	  	4
	1.1	  	Definitions	  	4
	1.2	  	References to persons and companies	  	7
	1.3	  	Headings and references to Clauses, Annexes, Parts and Paragraphs	  	8
	1.4	  	References to liabilities and obligations of Royal Philips and PSI	  	8
	1.5	  	Legal terms	  	8
	1.6	  	Other references	  	8
	1.7	  	Drafting Party	  	8
	2	  	ASSIGNMENT OF TRANSFER-PATENTS TO PSI	  	8
	2.1	  	Transfer	  	8
	2.2	  	Effecting transfer	  	9
	2.3	  	Rights prior to Closing Date	  	9
	2.4	  	License pending transfer	  	9
	2.5	  	Information on challenges pending transfer	  	9
	2.6	  	Prior consent	  	10
	2.7	  	Information on prior arrangements	  	10
	2.8	  	Transfer costs	  	10
	2.9	  	Maintenance costs	  	10
	2.10	  	Return of Philips-Patents	  	10
	3	  	RETAINED LICENSE TO PHILIPS GROUP	  	10
	3.1	  	Retained license	  	10
	3.2	  	Have-made and sublicensing rights Philips Group	  	10
	3.3	  	Undertaking not to enforce	  	11
	3.4	  	Termination in respect of Divested Companies	  	11
	3.5	  	Option for Divested Companies	  	11
	3.6	  	License to Divested Companies	  	12
	3.7	  	Respecting license and prior commitments in case of pledge of Transfer-Patents	  	12
	3.8	  	Registration license before registration pledge	  	12
	4	  	LICENSE TO PSI GROUP	  	12
	4.1	  	For current and successor products and technologies/features	  	12
	4.2	  	For technologies/features currently developed by or for PSI BUs	  	13
	4.3	  	For technologies/features developed pursuant to roadmaps or forecasts	  	13
	4.4	  	GMR Philips-Patents	  	14
	4.5	  	RFID tags	  	14
	4.6	  	Respecting prior commitments	  	14
	4.7	  	Sublicensing rights	  	14
	4.8	  	Establishment CTO Council	  	14
	4.9	  	Decisions CTO Council	  	14
	4.10	  	Absence of positive CTO Council decision	  	15
	4.11	  	Additional negotiated licenses	  	15
	4.12	  	Exceptions	  	15
	4.13	  	Termination in respect of Divested Companies	  	15
	4.14	  	Option for Divested Companies	  	16
	4.15	  	License to Divested Companies	  	16
	5	  	EXCEPTIONS	  	16
	5.1	  	PCM Transfer-Patents	  	16
	5.2	  	PCM Transfer-Patents retained license	  	16
	5.3	  	Stand still PCM Transfer-Patents	  	16

  

					
		  	2	  	

					
	5.4	  	3D applications	  	16
	5.5	  	Solid state lighting applications	  	17
	6	  	KNOW-HOW, COPYRIGHTS	  	17
	6.1	  	Business Know-How	  	17
	6.2	  	Copyrights	  	17
	7	  	SOFTWARE	  	17
	7.1	  	Business Software	  	17
	7.2	  	License to use Philips-Owned Software	  	18
	7.3	  	Third Party Software	  	18
	7.4	  	Philips-Owned Software	  	18
	8	  	TRADEMARKS AND DOMAIN NAMES	  	18
	8.1	  	Assignment	  	18
	8.2	  	Restricted Use	  	18
	9	  	ASSIGNMENT OF PATENT LICENSE AND PATENT OWNERSHIP AGREEMENTS	  	18
	9.1	  	Assignment	  	18
	9.2	  	Exception to assignment	  	19
	9.3	  	Divested Companies	  	19
	10	  	CONFIDENTIAL INFORMATION	  	19
	11	  	REPRESENTATIONS AND WARRANTIES	  	19
	11.1	  	As is	  	19
	11.2	  	No maintenance obligation	  	20
	12	  	NON-COMPETE	  	20
	12.1	  	Restricted activities	  	20
	12.2	  	Products not restricted	  	20
	12.3	  	Activities not restricted	  	20
	12.4	  	If Royal Philips is acquired	  	22
	13	  	CLAIMS AND LIABILITY	  	22
	14	  	TERMINATION	  	22
	15	  	NOTICES	  	22
	16	  	NO ASSIGNMENT	  	23
	17	  	MISCELLANEOUS	  	23
	17.1	  	No implied license	  	23
	17.2	  	No agency	  	23
	18	  	SEVERABILITY	  	23
	19	  	ENTIRE AGREEMENT	  	23
	20	  	APPLICABLE LAW AND JURISDICTION	  	23
	20.1	  	Dutch law	  	23
	20.2	  	Jurisdiction	  	24
	Annex 1	  	Transfer-Patents	  	
	Annex 1A	  	PCM Transfer-Patents	  	
	Annex 2	  	Invention Disclosures	  	
	Annex 3	  	GMR Philips-Patents	  	
	Annex 4	  	Trademarks	  	
	Annex 5	  	 Domain Names
	  	
	Annex 6	  	PSI BUs Products	  	
	Annex 7	  	PSI EBs Products	  	
	Annex 8	  	PSI SW Products	  	
	Annex 9A	  	Decisions of the CTO Council with regard to the Integral Roadmaps of PSI BUs	  	
	Annex 9B	  	Integral Roadmaps of PSI BUs	  	
	Annex 10A	  	Decisions of the CTO Council with regard to the Rolling Financial Forecasts of PSI EBs	  	
	Annex 10B	  	Rolling Financial Forecasts of PSI EBs	  	
	Annex 11A	  	Decisions of the CTO Council with regard to the Rolling Financial Forecasts of PSI SW	  	
	Annex 11B	  	Rolling Financial Forecasts of PSI SW	  	
	Annex 12A	  	Deed of Transfer of Transfer-Patents	  	
	Annex 12B	  	Annex to the Deed of Transfer of Transfer-Patents	  	
	Annex 13A	  	Deed of Transfer of Trademarks and Domain Names	  	
	Annex 13B	  	Annex to the Deed of Transfer of Trademarks and Domain Names	  	
	Annex 14	  	Third Party Software Agreements	  	
	Annex 15	  	List of Patent License and Patent Ownership Agreements	  	
	Annex 16	  	Trademark License Agreement	  	

  

					
		  	3	  	

 INTELLECTUAL PROPERTY TRANSFER AND LICENSE AGREEMENT THIS AGREEMENT IS MADE BETWEEN: 

 

	(1)	Koninklijke Philips Electronics N.V., a limited liability company incorporated in the Netherlands, with corporate seat in Eindhoven, the Netherlands, and
address at Groenewoudseweg 1, Eindhoven, the Netherlands (“Royal Philips”), 

 and 

 

	(2)	Philips Semiconductors International B.V., a limited liability company incorporated in the Netherlands, with corporate seat in Eindhoven, the Netherlands,
and address at High Tech Campus 60, Eindhoven, the Netherlands (“PSI”), 

 WHEREAS: 

 

	(A)	as part of its disentanglement plan, Royal Philips has decided to disentangle all assets and liabilities constituting the business operations of the Royal Philips
semiconductors division to a separate group; 

  

	(B)	by this Intellectual Property Transfer and License Agreement the Parties wish to set out the terms and conditions applicable to the assignment and licensing of
intellectual property relevant to aforementioned disentanglement. 

 IT IS AGREED AS FOLLOWS: 

 

	1	INTERPRETATION AND DEFINITIONS 

  

	1.1	Definitions 

 When used in
this Agreement, the following capitalized terms shall have the meanings set forth below: 
 “*** Applications”
shall mean any application that enables a *** (including but not limited to conversion from *** to *** conversion from *** to ***, rendering for ***, *** or ***). 

“Agreement” shall mean this Intellectual Property Transfer and License Agreement together with all annexes, exhibits and
other documents referred to herein or therein. 
  

					
		  	4	  	

 “Associated Company(ies)” shaft mean any one or more entities, which is
(are) directly or indirectly owned or controlled by Royal Philips or PSI, respectively, but any such entity shall only be deemed an Associated Company for the period such ownership or control exists. For the purposes of this definition, (i) Royal
Philips or PSI shall be deemed to own and/or to control an entity if more than 50% (fifty per cent) of the voting stock of such entity, ordinarily entitled to vote for the election of directors (or, if there is no such stock, more than 50% (fifty
per cent) of the ownership of or control in such entity) is held by and consolidated in the annual accounts of Royal Philips or PSI, respectively, and (ii) PSI and its Associated Companies shall not be deemed Associated Companies of Royal Philips,
irrespective of Royal Philips’ share in PSI. 
 “Business Know-How” shall mean any Know-How owned by
Philips Group-Old, which originated within any entities of Philips Group-Old and that is primarily used or primarily intended to be used within PSI Group as of the Closing Date. 

“Business Software” shall mean any Software owned by Philips Group-Old, which originated within any entities of Philips
Group-Old and that is primarily used or primarily intended to be used within PSI Group as of the Closing Date, ***. 

“Closing Date” shall mean 28 September 2006 at 24.00 hours CET. 

“Confidential Information” shall have the meaning referred to in Clause 10. 

“CTO Council” shall mean the *** referred to in Clause 4.8. 

*** shall mean any former *** respectively, and any *** (other than to ***). 

“Domain Names” shall mean the registered domain names and applications therefor as listed in *** to this Agreement.

 “GMR Philips-Patents” shall mean the *** Patents that are listed in *** to this Agreement. 

*** shall mean the *** for the *** calendar years after the Closing Date of the PSI BUs, as attached to this Agreement as ***. 

“Intellectual Property” shall mean Patents, Know-How, Software, the copyrights meant in Clause 6.2, Trademarks and Domain
Names. 
 “Kits” shall mean kits consisting of one or more integrated circuits and software. 

 

					
		  	5	  	

 “Know-How” shad mean all technical information, data and documents of
whatever nature, including without limitation drawings, specifications, photographs, samples, models, processes, procedures, reports and correspondence, all of which relate to the Products, but excluding any intellectual property rights (including
data base rights) therein. 
 “Party” shall mean Royal Philips or PSI and “Parties” shall mean Royal
Philips and PSI together. 
 “Patents” shall mean any patents, petty patents, provisionals, utility models or
applications therefor, including any divisions, continuations, continuations-in-part, reexaminations, renewals and re-issues thereof, in any country of the world. 

“*** Transfer-Patents” shaft mean the Transfer-Patents that are listed in *** to this Agreement. 

“Philips Group” shall mean Royal Philips together with its Associated Companies. 

“Philips Group-Old” shall mean Philips Group and any entities of PS! Group immediately after the Closing Date.

 “Philips Know-How” shall mean any Know-How owned by Philips Group-Old, other than Business Know-How, which is
available to PSI Group immediately after the Closing Date. 
 “Philips-Owned Software” shall mean any Software
owned by Philips Group-Old, other than Business Software, which is used by PSI Group as of the Closing Date *** 

“Philips-Patents” shall mean any Patents owned or controlled by Philips Group-Old, other than Transfer-Patents, to the
extent that they are entitled to the benefit of a filing date prior to the Closing Date and for which Philips is free to grant licenses to third parties without the consent of or accounting to any third party, other than an Associated Company of
Royal Philips or an Associated Company of PSI. 
 “Products” shall mean PSI BUs Products, PSI EBs Products and
PSI SW Products. 
 “PSI Group” shall mean PSI together with its Associated Companies, and where it concerns the
period before the Closing Date PSI together with the Associated Companies of Royal Philips which are (to be) an Associated Company of PSI as of the Closing Date. 

“PSI Bus” shall mean the Philips Semiconductors’ business units referred to as Home, Mobile & Personal,
Automotive & Identification and Multi Market Semiconductors as belonging to PSI Group as of the Closing Date. 

“PSI BUs Product(s)” shall mean any produces) as listed in the product catalogue attached to this Agreement as Annex ***
as well as proprietary products of the PSI BUs that PSI can reasonably demonstrate were offered for sale to third parties prior to the Closing Date. 
  

					
		  	6	  	

 “PSI EBs” shall mean the Philips Semiconductors’ business unit
referred to as Emerging Businesses, excluding the Philips Semiconductors’ business unit Philips Software, as belonging to PSI Group as of the Closing Date. 

“PSI EBs Product(s)” shall mean any product(s) as listed in the product catalogue attached to this Agreement as *** as
well as proprietary products of the PSI EBs that PSI can reasonably demonstrate were offered for sale to third parties prior to the Closing Date. 

“PSI SW” shall mean the part of the Philips Semiconductors’ business unit referred to as Philips Software as
belonging to PSI Group as of the Closing Date. 
 “PSI SW Product(s)” shall mean any product(s) as listed in the
product catalogue attached to this Agreement as *** as well as proprietary products of PSI SW that PSI can reasonably demonstrate were offered for sale to third parties prior to the Closing Date. 

“Rolling Financial Forecasts of PSI EBs” or “RFFs of PSI EBs” shall mean the financial forecasts for the six
annual quarters of Q2 of 2006 – Q3 of 2007 of the PSI EBs, as attached to this Agreement as ***. 
 “Rolling
Financial Forecasts of PSI SW” or “RFFs of PSI SW” shall mean the financial forecasts for the six annual quarters of Q2 of 2006 – Q3 of 2007 of PSI SW, as attached to this Agreement as ***. 

“Software” shall mean (any rights on) a code in any programming language contained in any format, including human and
machine-readable format. 
 “Third Party Software” shall mean any Software owned by a third party that is
licensed to Philips Group-Old and which is predominantly used by PSI Group as of the Closing Date *** 

“Trademarks” shall mean the registered trademarks and applications therefor as listed in *** to this Agreement.

 “Transfer-Patents” shall mean the Patents that are listed in *** to this Agreement, any corresponding Patents
to the extent that they cover the same inventions as the Patents listed in *** and any (Patents on the) invention disclosures that are listed in *** to this Agreement, subject to any changes due to withdrawals and rejections in the normal course of
business occurring between the date of compilation of these Annexes and the Closing Date. 
 “Transferred Intellectual
Property” shall mean all Intellectual Property (to be) assigned to PSI Group in accordance with the provisions of this Agreement. 
  

	1.2	References to persons and companies 

References to: 
  

	 	1.2.1	a “person” include any individual, company, partnership or unincorporated association (whether or not having separate legal personality); and

  

					
		  	7	  	

	 	1.2.2	a “company” include any company, corporation or any body corporate, wherever incorporated. 

 

	1.3	Headings and references to Clauses, Annexes, Parts and Paragraphs 

  

	 	1.3.1	Headings have been inserted for convenience of reference only and do not affect the interpretation of any of the provisions of this Agreement.

  

	 	1.3.2	A reference in this Agreement to a “Clause” or “Annex” is to the relevant clause of or annex to this Agreement; to a “Part” is to the
relevant part of the relevant Annex; and to a “Paragraph” is to the relevant paragraph of (the relevant Part of) the relevant Annex. 

  

	1.4	References to liabilities and obligations of Royal Philips and PSI 

  

	 	1.4.1	Any reference in this Agreement to a liability or obligation of Royal Philips shall be deemed to incorporate a reference to an obligation on the part of Royal Philips
to procure that the relevant liability is discharged or obligation is performed by any of the relevant members of Philips Group, subject to the terms set out in this Agreement. 

 

	 	1.4.2	Any reference in this Agreement to a liability or obligation of PSI shall be deemed to incorporate a reference to an obligation on the part of PSI to procure that the
relevant liability is discharged or obligation is performed by any of the relevant members of PSI Group, subject to the terms set out in this Agreement. 

  

	1.5	Legal terms 

 In respect
of any jurisdiction other than the Netherlands, a reference to any Netherlands legal term shall be construed as a reference to the term or concept which most nearly corresponds to it in that jurisdiction. 

 

	1.6	Other references 

  

	 	1.6.1	Whenever used in this Agreement, the words “include”, “includes” and “including” shall be deemed to be followed by the phrase
“without limitation”. 

  

	 	1.6.2	Any reference in this Agreement to any gender shall include all genders, and words importing the singular shall include the plural and vice versa.

  

	 	1.6.3	Whenever used In this Agreement in the context of the grant of a license or rights under any Intellectual Property, the words “use” or “used” shall
be deemed to include all acts and activities which would (if not for the license) infringe or amount to an actionable misuse of the-relevant rights including the use, development, keeping, making, selling, offering for sale, leasing, importing,
exporting or otherwise disposing of any product, process or method. 

  

	1.7	Drafting Party 

 No
provision of this Agreement shall be interpreted against a Party solely as a result of the fact that such Party was responsible for the drafting of such provision, it being acknowledged that the Parties and representatives of the Parties have
participated in the drafting and negotiating of this Agreement. 
  

	2	ASSIGNMENT OF TRANSFER-PATENTS TO PSI 

  

	2.1	Transfer 

 Subject to the
provisions of this Clause 2, Royal Philips hereby assigns to PSI and 
  

					
		  	8	  	

 
agrees to transfer to PSI or such PSI Group member as designated by PSI and PSI shall procure that such PSI Group member shall accept the transfer of the Transfer-Patents, subject to all prior
commitments and prior undertakings vis-à-vis third parties entered into by Philips Group-Old prior to the Closing Date and all arrangements between entities belonging to PSI Group and entities remaining with Philips Group made prior to the
Closing Date, and subject to the license retained by Philips Group pursuant to Clauses 3.1 and 3.2 under any and all Transfer-Patents, 
  

	2.2	Effecting transfer 

 Royal
Philips shall execute and deliver all files, assignments, and titles, evidence or authorizations as may be required to effectuate or to formalize the transfer of the Transfer-Patents on a jurisdiction by jurisdiction basis, and to cause the
Transfer-Patents to be recorded at the relevant patent registers around the world in the name of PSI or its designated Associated Companies. For the purpose of the registration of the transfer of the legal title to the Transfer-Patents as per Clause
2.1 hereof, Royal Philips and PSI shall sign a deed of transfer containing the same conditions as the deed of transfer in *** as soon as possible after the Closing Date when the Parties have reached agreement on the format of the annex to the deed
of transfer. Royal Philips hereby grants PSI and its Associated Companies (designated by PSI) an irrevocable power of attorney to perform any (legal) acts and to execute any documents in its or its Associated Companies’ name as may be necessary
in this respect, it being understood that this Agreement may not be submitted to the relevant patent registers. If, for whatever reason, the transfer of the Transfer-Patents has not become effective, in full or in part, by the signing by both
Parties of this deed of transfer, both Parties will promptly do whatever is necessary to fully effectuate the transfer of the Transfer-Patents. 
  

	2.3	Rights prior to Closing Date 

PSI does not acquire any rights accruing from ownership of the Transfer-Patents prior to the Closing Date. PSI Group may, however, (i) sue
and collect damages in respect of any act of infringement or alleged infringement upon the Transfer-Patents committed prior to the Closing Date, and (ii) give a release for any acts performed prior to the Closing Date and infringing or
allegedly infringing upon the Transfer-Patents to any third party. Royal Philips shall not be obliged to take any action in relation to any third party for any act of infringement prior to the Closing Date. 

 

	2.4	License pending transfer 

Pending the transfers contemplated by Clauses 2.1 and 2.2, PSI Group shall have a license to undertake anything they would be entitled to,
had the transfers been effected already, except to enforce at law. 
  

	2.5	Information on challenges pending transfer 

Royal Philips shall pass on to PSI any correspondence Philips Group receives with respect to any of the Transfer-Patents. This obligation
of Royal Philips to inform PSI shall cease upon transfer and recordal of the change in ownership of the Transfer-Patents in the national registers of the designated countries (in respect of such Patents), but no later than 12 (twelve) months after
the Closing Date. PSI shall decide at its sole discretion whether it wants to take any action on the basis of the information provided by Royal Philips, and if so, which action it wishes to take. If PSI decides to take action against a third party
in order to uphold or enforce the Transfer-Patents, Royal Philips shall provide any reasonable assistance which PSI may request, unless such assistance would harm the reasonable business interests of Philips Group, PSI shall compensate Royal Philips

  

					
		  	9	  	

 
for ail reasonable costs which Royal Philips shall make in providing this assistance. Notwithstanding anything in the foregoing, Royal Philips shall not have any obligation to become a party in
any litigation to which PSI is a party. 
  

	2.6	Prior consent 

 Where
Philips Group requires a third party’s prior consent for a transfer contemplated in Clauses 2.1 and 2.2, Royal Philips shall use its reasonable endeavors to procure such consent as soon as reasonably possible and will effect the assignment and
transfer to PSI Group of such Transfer-Patents immediately thereafter. 
  

	2.7	Information on prior arrangements 

Within 30 days following receipt of PSI’s or any of its successors’ or assigns’ written request specifying the third party
against whom PSI or any authorised third party contemplates to enforce any of the Transfer-Patents, Royal Philips shall use its reasonable endeavors to confirm in writing whether or not that third party can claim rights under those Transfer-Patents
(i) granted by Philips Group-Old under any prior agreement or prior commitment entered into prior to the Closing Date or (ii) granted by Philips Group pursuant to Clause 3 after the Closing Date. 

 

	2.8	Transfer costs 

 PSI shall
bear any costs related to the assignment and transfer of the Transfer-Patents from Philips Group to PSI Group pursuant to Clauses 2.1 and 2.2 and the registration thereof, including all official and agency fees. 

 

	2.9	Maintenance costs 

 PSI
shall bear any costs of prosecution and maintenance of the Transfer-Patents arising as from the Closing Date, including any remuneration payable to inventors with respect to the period after the Closing Date in accordance with applicable national
laws with respect to any of the Transfer-Patents, except that amounts that become due and payable after the Closing Date with respect to prosecution or maintenance of the Transfer-Patents in the period before the Closing Date, shall be borne by
Royal Philips. 
  

	2.10	Return of Philips-Patents 

Subject to all prior commitments and prior undertakings of Philips Group-Old to third parties entered into prior to the Closing Date and
subject to the licenses granted to PSI Group pursuant to Clause 4, PSI Group hereby assigns to Royal Philips any Philips-Patents that are registered in the name of any entities of Philips Group-Old belonging to PSI Group as of the Closing Date. The
above paragraphs of this Clause 2 apply mutatis mutandis (e.g. with Royal Philips bearing the cost). 
  

	3	RETAINED LICENSE TO PHILIPS GROUP 

  

	3.1	Retained license 

 Philips
Group retains a *** license under the *** as of the Closing Date and under ***, but not including *** 
  

	3.2	Have-made and sublicensing rights Philips Group 

The license retained by Philips Group pursuant to Clause 3.1 includes *** 

 

	 	3.2.1	to *** and for the use or resale by, Philips Group; 

  

					
		  	10	  	

	 	3.2.2	to *** 

  

	 	3.2.3	to *** 

  

	 	3.2.4	to *** 

  

	 	3.2.5	to *** 

  

	 	3.2.6	to *** 

 but does not include ***

  

	3.3	Undertaking *** 

 PSI
shall *** 
  

	3.4	Termination in respect of *** 

The license retained by Philips Group pursuant to Clauses 3.1 and 3.2 above shall terminate *** 

 

	3.5	Option for *** 

 In the
event that such *** 
  

					
		  	11	  	

	3.6	License to *** 

 Such
license *** 
  

	3.7	Respecting license and prior commitments in case of pledge of Transfer-Patents 

In the event PSI agrees with a third party to pledge, or otherwise encumber, any of the Transfer-Patents, PSI is under the obligation to
agree with such third party, (a) that such third party shall respect (i) the licenses retained by Philips Group with regard to the Transfer-Patents, and (ii) the prior commitments and prior undertakings with regard to the Transfer-Patents vis-a-vis
third parties entered into by Philips Group-Old prior to the Closing Date and all arrangements with regard to the Transfer-Patents between entities belonging to PSI Group and entities remaining with Philips Group made prior to the Closing Date, and
(b) that such third party shall impose the obligations described under (a) on any other beneficiary/transferee of any of the Transfer-Patents by way of a perpetual clause. 

 

	3.8	Registration license before registration pledge 

In the event that (i) any of the Transfer-Patents is pledged or otherwise encumbered, (ii) the pledge or other encumbrance is registered
at the relevant patent authorities or other authority, and (iii) the license retained by Philips Group cannot be secured in the registration of the pledge or other encumbrance, then PSI shall be under the obligation to register such license at the
relevant patent authorities prior the registration of such pledge or other encumbrance. 
  

	4	LICENSE TO PSI GROUP 

  

	4.1	For current and successor products and technologies/features 

Subject to Clauses 4.6 and 4.12, Royal Philips hereby grants to PSI Group a nonexclusive, non-transferable, irrevocable, world-wide, fully
paid-up and royalty-free license, including the have-made and sublicensing rights as stipulated in Clause 4.7, under any and all Philips-Patents or Philips Know-How 
  

	 	4.1.1	used in any PSI BUs Product for the continued use by PSI Group in such Product and any commercial successor type thereof; 

 

	 	4.1.2	used in any PSI EBs Product approved by the CTO Council (as evidenced by Annex 7) for the continued use by PSI Group in such Product and any commercial successor type
thereof; 

  

	 	4.1.3	used in. any PSI SW Product approved by the CTO Council (as evidenced by Annex 8) for the continued use by PSI Group in such Product and any commercial successor type
thereof; 

  

	 	4.1.4	used in any technology/feature used in any PSI EBs Product approved by the CTO Council (as evidenced by Annex 7) for the use by PSI Group of such technology/feature in
products within the current scope of PSI EBs; 

  

	 	4.1.5	used in any technology/feature used in any PSI SW Product approved by the CTO Council (as evidenced by Annex 8) for the use by PSI Group of such technology/feature in
products within the current scope of PSI SW. 

  

					
		  	12	  	

 A current scope includes products offered for sale prior to the Closing Date,
technologies/features approved as set out above, their commercial successor types and any natural extension thereof, 
  

	4.2	For technologies/features currently developed by or for PSI BUs 

Subject to Clauses 4.6 and 4.12, Royal Philips hereby grants to PSI Group a nonexclusive, non-transferable, irrevocable, world-wide, fully
paid-up and royalty-free license, including the have-made and sublicensing rights as stipulated in Clause 4.7, under any and all Philips-Patents and Philips Know-How that are or will be used in any technology/feature, for which PSI can demonstrate
to the reasonable satisfaction of Royal Philips, that this was 
  

	 	(i)	developed by and for the account of one or more of the PSI BUs prior to the Closing Date, 

 

	 	(ii)	under a material development by and for the account of one or more of the PSI BUs on the basis of an approved budget and started within one or more of the PSI BUs prior
to the Closing Date, or 

  

	 	(iii)	developed exclusively for one or more of the PSI BUs and transferred to the relevant PSI BUs within 3 months after the Closing Date, 

such license being for the use of such technology/feature in products within the current scope of the PSI BUs. 

 

	4.3	For technologies/features developed pursuant to roadmaps or forecasts 

Subject to Clauses 4.6 and 4.12, Royal Philips hereby grants to PSI Group a nonexclusive, non-transferable, irrevocable, world-wide, fully
paid-up and royalty-free license, including the have-made and sublicensing rights as stipulated in Clause 4.7, under any Philips-Patents or Philips Know-How that originated from such part (in scope and time) of the contract research work executed by
Philips Group-Old prior to the Closing Date that was co-funded by PSI Group, as can be demonstrated by PSI to the reasonable satisfaction of Royal Philips, and that 
  

	 	4.3.1	are used in any technology/feature approved by the CTO Council (as evidenced by Annex 9A) that has been or will be developed by or exclusively for one or more of the
PSI BUs pursuant to one or more of the Integral Roadmaps of PSI BUs, such license being for the use of such technology/feature in products within the current scope of the PSI BUs; 

 

	 	4.3.2	are used in any technology/feature approved by the CTO Council (as evidenced by Annex 10A) that has been or will be developed by or exclusively for one or more of the
PSI EBs pursuant to one or more of the RFFs of PSI EBs, such license being for the use of such technology/feature in products within the current scope of the PSI EBs; 

 

	 	4.3.3	are used in any technology/feature approved by the CTO Council (as evidenced by Annex 11 A) that has been or will be developed by or exclusively for PSI SW pursuant to
one or more of the RFFs of PSI SW, such license being for the use of such technology/feature in products within the current scope of PSI SW. 

  

					
		  	13	  	

	4.4	GMR Philips-Patents 

Subject to Clauses 4.6 and 4.12, Royal Philips hereby grants to PSI Group a non-exclusive, non-transferable, irrevocable, world-wide,
fully paid-up and royalty-free license, including the have-made and sublicensing rights as stipulated in Clause 4.7, under the GMR Philips-Patents for use in Giant Magneto-Resistive devices outside the field of healthcare and bio applications,

  

	4.5	RFID tags 

Subject to Clauses 4.8 and 4.12, Royal Philips hereby grants to PSI Group a non-exclusive, non-transferable,
irrevocable, world-wide, fully paid-up and royalty-free license, including the have-made and sublicensing rights as stipulated in Clause 4.7, under the Philips-Patents relevant to polymer electronics and that originated from such part (in scope and
time) of the contract research work executed by Philips Group-Old prior to the Closing Date as was co-funded by PSI Group, as can be demonstrated by PSI to the reasonable satisfaction of Royal Philips, such license being limited to use in the field
of RFID tags and labels. *** 
  

	4.6	Respecting prior commitments 

The licenses granted by Royal Philips to PSI Group pursuant to Clauses 4.1 - 4.5 above are subject to alt prior commitments and prior
undertakings vis-à-vis third parties entered into by Philips Group-Old prior to the Closing Date and all arrangements between entities belonging to PSI Group and entities remaining with Philips Group, made prior to the Closing Date and, where
such licenses to PSI Group are granted after the Closing Date, also the prior commitments and prior undertakings vis-à-vis third parties entered into by Philips Group between the Closing Date and such later date. 

 

	4.7	Sublicensing rights 

 The
licenses granted by Royal Philips to PSI Group pursuant to Clauses 4.1 - 4.5 include the fully paid-up and royalty-free right for PSI Group: 
  

	 	4.7.1	to have products made by a third party manufacturer, solely for the account of, and for the use or resale by, PSI Group; and 

 

	 	4.7.2	to grant sublicenses in the context of and to the extent necessary for the sale or licensing, directly or indirectly, of services, Software and/or IP blocks by PSI
Group; 

 The licenses granted pursuant to Clauses 4.1 - 4.5 do not include any other have-made or sublicensing
right than set out in this Clause 4.7. 
  

	4.8	Establishment CTO Council 

Parties have established and have agreed to continue a committee (“CTO Council”) that is chaired by the CTO of Philips and
further has as its members the CTO of PSI, the CTOs of the Philips Product Divisions, as well as the CEOs of Philips Research, Philips Applied Technologies and Philips Intellectual Property & Standards. The CTO Council shall meet upon the
written request of one of the Parties. At meetings of the CTO Council at least one member of each Party shall be present. 
  

	4.9	Decisions CTO Council 

The CTO Council has decided, and to the extent necessary, will decide after the Closing Date, on the basis of unanimity whether to approve
any technology/feature or Product pursuant to Clauses 4.1 (except 4.1.1) and 4.3 above, such approval only to be withheld if such approval would harm the business interests of Philips Group. The CTO Council may decide on the basis of majority
voting, including the affirmative vote of PSI Group’s 
  

					
		  	14	  	

 
CTO, to make such approval subject to the conditions that the license granted by Royal Philips to PSI Group shall only enter into force after expiration of certain leadtime(s) for Philips Group
and/or that the license granted by Royal Philips to PSI Group shall be restricted to certain field(s) of use, which conditions shall be adhered to and respected by PSI Group in respect of its products offered for sale to third parties. The
technologies/features or Products for which the CTO Council has made its approval subject to leadtime(s) and/or field(s) of use are indicated in Annexes 7, 8, 9A, 10A, and 11A to this Agreement, which shall be updated by the Parties from time to
time in accordance with the provisions of this Agreement. 
  

	4.10	Absence of positive CTO Council decision 

As of the Closing Date, PSI Group shall not have any license rights, neither directly nor indirectly, in respect of the
technologies/features and Products for which the CTO Council has not given its approval in accordance with Clause 4.9 prior to the Closing Date (as evidenced by Annexes 7, 8, 9A, 10A and 11A to this Agreement), except in case the CTO Council decides
to give its approval after the Closing Date. Such withholding of an approval by the CTO Council shall be without prejudice to PSI Group’s right to seek approval for such technology/feature or Product again in a later meeting of the CTO Council
after the Closing Date. In the event that the CTO Council then decides to approve such technology/feature or Product as yet, PSI Group shall be licensed for such technology/feature or Product in accordance with the applicable license granted to PSI
Group pursuant to Clauses 4.1 - 4.3, provided however that any other conditions to which the grant of such license is subject, have also been satisfied. The Parties shall update Annexes 7, 8, 9A, 10A and 11A accordingly from time to time in
accordance with the provisions of this Agreement. 
  

	4.11	Additional negotiated licenses 

Subject to Clause 4.12, upon PSI’s request, Philips shall negotiate with PSI Group the grant of non-exclusive licenses under any
Philips-Patents other than those licensed to PSI Group pursuant to Clauses 4.1 - 4.5 for use within the scope of PSI Group’s business against terms and conditions to be agreed upon between the Parties, unless the grant of such license to PSI
Group would cause harm to any of Philips Group’s business or IP interests. 
  

	4.12	Exceptions 

 None of the
provisions of this Agreement shall be interpreted to require Royal Philips to grant or have granted any licenses to PSI Group under any Philips-Patents that: 
  

	 	(i)	are necessarily infringed when implementing a standard adopted by a standard setting body, interest group or agreed between two or more companies; or

  

	 	(ii)	are or will be part of an industry-wide licensing program of which Royal Philips has notified PSI Group in writing. 

 

	4.13	Termination in respect of *** 

The licenses granted by Royal Philips to PSI Group pursuant to Clauses 4.1 - 4.5 and 4.7 above shall terminate ***. Such termination shaft
be without prejudice to and have no effect on any licenses granted to or retained by Philips Group under this Agreement with respect to any Transfer-Patents, Business Know-How or Business Software owned or controlled by such entity. 

 

					
		  	15	  	

	4.14	Option for *** 

 In the
event that *** requests Royal Philips in writing with the written support of PSI within 180 days after *** with Royal Philips as specified in Clause 4.***, then Royal Philips shall *** 

 

	4.15	License *** 

 Such license
agreement shall be for the grant of non-transferable, non-exclusive, irrevocable, world-wide, fully paid-up and royalty-free licenses of the same scope and subject to the same conditions as the licenses pursuant to Clauses 4.1 - 4.5, provided
however that such licenses (i) shall only be under those Philips-Patents that are licensed to PSI Group pursuant to Clauses 4.1 - 4.5 at the moment of *** and which are *** and (ii) shall be limited to the *** 

 

	5	EXCEPTIONS 

  

	5.1	*** Transfer-Patents 

 PSI
Group shall re-assign to Royal Philips the *** Transfer-Patents, in the event that PSI Group has not satisfied all of the following conditions at the latest 5 years after the Closing Date: 

 

	 	(i)	*** is on the official technology roadmap of PSI Group, with one committed product to a customer; 

 

	 	(ii)	a first *** of at least *** has been designed; and 

  

	 	(iii)	first *** wafers have been processed in *** or in any other *** facility. 

  

	5.2	*** Transfer-Patents retained license 

Any re-assignment pursuant to Clause 5.1 shall be subject to PSI Group retaining a nonexclusive, non-transferable, irrevocable,
world-wide, fully paid-up and royalty-free license, without the right to grant sublicenses (except to have products made by a third party manufacturer, solely for the account of, and for the use or resale by, PSI Group), under the ***
Transfer-Patents for its own use. 
  

	5.3	Stand still *** Transfer-Patents 

Until fulfilment of the conditions set out in Clause 5.1 or re-assignment as set out in Clause 5.1 (whichever happens first), PSI Group
shall 
  

	 	5.3.1	not enter into any commitment or undertaking vis-à-vis any third party that would materially restrict Philips Group’s use of these Patents if and when
transferred to Royal Philips pursuant to Clause 5.1; 

  

	 	5.3.2	endeavor to maintain the *** Transfer Patents in each country, except those for which PSI first offered the relevant Patents to Royal Philips and Royal Philips did not
express its desire to have such Patents transferred to it; 

  

	 	5.3.3	prosecute each of the *** Transfer Patents in a manner, which reasonably preserves the broadest possible scope of protection in US, JP, CN, DE, FR and GB, in order to
take into account Philips Group’s interests in these Patents, 

  

	5.4	*** applications 

 Clause
4 does not apply to Philips-Patents and Philips Know-How relevant to *** 
  

					
		  	16	  	

 
Applications. Upon PSl’s request, Royal Philips shall grant PSI Group a non-exclusive license under Philips-Patents and Philips Know-How relevant to *** Applications, such license shall be
against terms and conditions similar to those Royal Philips offers to other semiconductor manufacturers and subject to the exceptions set forth in Clause 4.12 which shall apply mutatis mutandis. Royal Philips shall not be required to grant PS!
broader licenses than actually granted to other semiconductor manufacturers. 
  

	5.5	Solid state lighting applications 

For products that are or incorporate a solid-state lighting device for lighting applications, or any component specifically designed
therefor other than integrated circuits for use in control drivers, the licenses granted to PSI Group pursuant to Clause 4 only extend to those Philips-Patents that (i) originated from such part (in scope and time) of the contract research work
executed by Philips Group-Old prior to the Closing Date as was co-funded by PSI Group, as can be demonstrated by PSI to the reasonable satisfaction of Royal Philips, or (ii) list as inventor(s) one or more employees that at the time of the
invention were employed by PSI Group. 
  

	6	KNOW-HOW, COPYRIGHTS 

  

	6.1	Business Know-How 

 Royal
Philips hereby assigns and transfers and shall procure the assignment and transfer by its Associated Companies of all Business Know-How to PSI Group as per the Closing Date as part of PSI Group, subject to: 

6.1.1 all prior commitments and prior undertakings, either within Philips Group-Old or vis-à-vis third parties, entered into
by Philips Group-Old prior to the Closing Date; and 
  

	 	6.1.2	Philips Group retaining the license pursuant to Clauses 3.1 and 3.2. 

  

	6.2	Copyrights 

 Royal Philips
transfers and shall procure the transfer by its Associated Companies to PSI of ail copyrights it and they may have in the integrated circuits and discretes, miniature loudspeakers, Kits or RF front end solutions, all as sold or developed by or
exclusively for PSI Group until the Closing Date, and any copyrights in the drawings for or in documentation about such products (all except to the extent this constitutes Software). Nothing in this Agreement shall be read to imply a license to any
copyright of PSI Group, 
  

	7	SOFTWARE 

  

	7.1	Business Software 

 Royal
Philips hereby assigns and transfers, and shall procure that its Associated Companies will assign and transfer, to PSI Group Philips Group’s entire right, title and interest to the Business Software, including all copyrights and trade secrets
in the Business Software, for all countries of the world, subject to (i) all prior commitments and prior undertakings, either within Philips Group-Old or vis-à-vis third parties, entered into by Philips Group-Old prior to the Closing Date,
and (ii) Philips Group retaining a nonexclusive, irrevocable, world-wide, fully paid-up and royalty-free licence to use (in the broadest sense) such Software within the scope of business of Philips Group, including, without limitation, the
right to modify, create derivative works and the right to grant sublicenses for the use of such Software, in the context of and to the extent necessary for marketing or supplying Philips products and provided such Software is available within
Philips Group on the Closing Date. 
  

					
		  	17	  	

	7.2	License to use Philips-Owned Software 

Royal Philips hereby grants to PSI Group a non-transferable, non-exclusive, irrevocable, world-wide, fully paid up and royalty-free
license under any of Philips Group’s copyrights and trade secrets in the Philips-Owned Software to the extent such Software is available within PSI Group on the Closing Date to use (in the broadest sense) such Software within the scope of
business of PSI Group, including, without limitation, the right to modify, create derivative works and the right to grant sublicenses, in the context of and to the extent necessary for marketing or supplying integrated circuits and discretes,
miniature loudspeakers, Kits or RF front end solutions supplied by PSI Group per the Closing Date and any commercial successor types thereof, subject to all prior commitments and prior undertakings, either within Philips Group-Old or
vis-à-vis third parties, entered into by Philips Group-Old prior to the Closing Date. 
  

	7.3	Third Party Software 

Royal Philips shall assign to PSI Group the agreements relating to Third Party Software entered into by Philips Group-Old prior to the
Closing Date as listed in Annex *** to this Agreement, but only to the extent that such agreements are assignable without the consent of a third party. For any such agreement not so assignable, Philips shall use its reasonable endeavours to procure
the (consent to) assignment of such agreement to PSI Group or provide PSI Group the benefit of the rights under such agreements (subject to the obligations there under) in another way, all subject to PSI reimbursing Royal Philips for the additional
costs incurred by Philips Group in relation thereto. 
  

	7.4	Philips-Owned Software 

Royal Philips and PSI Group shall negotiate in good faith mutually agreeable terms and conditions for the maintenance and support of
Philips-Owned Software licensed hereunder by Royal Philips to PSI Group. 
  

	8	TRADEMARKS AND DOMAIN NAMES 

  

	8.1	Assignment 

 Royal Philips
hereby transfers and assigns to PSI Group the Trademarks, and the goodwill attached to and represented by such Trademarks and Domain Names, subject to all prior commitments and prior undertakings of Philips Group-Old to third parties entered into
prior to the Closing Date. Clauses 2.2 and 2.5 shall apply mutatis mutandis, except that Royal Philips and PSI shall sign the deed of transfer in Annex *** immediately after the signing of this Agreement. 

 

	8.2	Restricted Use 

 After the
Closing Date PSI Group shall not use (i) the word Philips as a trade name or as part of a corporate name, (ii) the trademark Philips and/or Philips shield emblem, or (iii) any derivate or combination mark containing the elements PHILI
or PHIL, other than as agreed in the Trademark License Agreement attached hereto as Annex ***. 
  

	9	ASSIGNMENT OF PATENT LICENSE AND PATENT OWNERSHIP AGREEMENTS 

  

	9.1	Assignment 

 Royal Philips
shall assign to PSI Group the patent license agreements and the patent ownership agreements entered into by Philips Group-Old prior to the Closing Date as listed in Annex *** hereto, to the extent that such agreements are assignable. 

 

					
		  	18	  	

	9.2	Exception to assignment 

If any such agreement is not assignable without the consent of a third party, Royal Philips shall use its reasonable endeavors to obtain
the consent of the other party(ies) to such agreement for the assignment thereof to PSI Group. If Philips is unable to obtain such consent. Philips shall use it reasonable endeavors to provide PSI Group the benefit of the rights under such
agreements (subject to the obligations there under) in another way or assist PSI Group in finding alternative solutions, all subject to PSI reimbursing Royal Philips for the additional costs (except internal costs) incurred by Philips Group in
relation thereto. 
  

	9.3	*** 

 In relation to any
license agreements or cross licenses listed in Annex *** by which rights may be granted to a divested company subject to Royal Philips or any of its Associated Companies supporting an application for the grant of such rights, Royal Philips shall
support such applications and shall use reasonable endeavours to ensure that the benefit of the *** provision in that agreement is realised for the benefit of the PSI Group as *** (of Royal Philips), all subject to PSI reimbursing Royal Philips for
the additional costs (except internal costs) incurred by Philips Group in relation thereto. 
  

	10	CONFIDENTIAL INFORMATION 

In connection with the disentanglement and assignments to be performed and licenses to be granted under this Agreement, Parties may
disclose or provide access to certain Confidential Information to each other or retain Confidential Information relating to the other Party and its Associated Companies. The receiving or retaining Party shall maintain such Confidential Information
relating to the other Party strictly confidential and shall not use, disclose, or otherwise exploit any Confidential Information for any purpose not expressly authorized under this Agreement. For the purpose of this Agreement, the term
“Confidential Information” shall mean any data or information that is designated as confidential by Philips Group-Old. Notwithstanding the foregoing, Confidential Information shall not include information that: (i) is publicly available or
in the public domain at the time it is disclosed; or (ii) is or becomes publicly available or enters the public domain through no fault of either Party or (iii) is obtained by the other Party from an authorised third-party source or developed
independently by the other Party, or (iv) is required by applicable law, court order or legal process to be disclosed, provided that the obligated Party shall promptly inform the other Party, and cooperate in any attempts by the other Party to
obtain a protective order or similar treatment. 
  

	11	REPRESENTATIONS AND WARRANTIES 

  

	11.1	As is 

 Parties
acknowledge and agree that the assignments made and licenses granted by either Party hereunder are made on an “AS IS” basis and Parties do not make and hereby expressly disclaim any other express or implied representation or any warranty
(including, without limitation, any express or implied warranties of merchantability, fitness for a particular purpose, title, enforceability, validity, subsistence, scope, non-infringement or non-violation of any rights of any third party, and the
absence of any outstanding order, judgement, decision, decree or agreement adversely affecting the use thereof by the other Party and its Associated Companies). 
  

					
		  	19	  	

	11.2	No maintenance obligation 

Except as specifically provided elsewhere, neither Party shall have any obligation to maintain or support any Intellectual Property
licensed under this Agreement, or to provide upgrades or enhancements thereto. 
  

	12	NON-COMPETE 

  

	12.1	Restricted activities 

Philips Group undertakes that *** commencing on the Closing Date, it shall not make, sell and/or otherwise dispose of integrated circuits
and discretes, miniature loudspeakers, Kits or RF front end solutions competing with products sold by PSI Group at the Closing Date or being developed by and for the account of PSI Group on the basis of an approved budget at the Closing Date, or
their commercial successors (any such competing products hereafter “PSI Products”), other than those referred to in Clause 12.2, in any country of the world (the “Restricted Activity”). 

 

	12.2	Products not restricted 

Solid state and other lighting devices (including control modules for drivers of such devices), giant-or tunnel magneto-resistive devices
for other than automotive applications, imaging- and bio- and other sensor devices, lab-on-chips, drug delivery and drug testing devices, therapeutic devices, implantables, sensor and actuator modules other than for automotive or RFID applications,
micro electro-mechanical and/or semiconductor switches for bio or healthcare applications, flexible-or organic semiconductors and semiconductors using substrates other than silicon fall outside the Restricted Activity. 

 

	12.3	Activities not restricted 

Nothing in Clause 12,1 shall restrict Philips Group from: 
  

	 	12.3.1	Conducting research, developing products, prototyping or making small non-commercial series of products competing with PSI Products; 

 

	 	12.3.2	Making, having made, selling or otherwise disposing of products the Philips Group offers for sale or develops as of the Closing Date (including through the businesses
of the Product Divisions Consumer Electronics (except for the IC Lab), Medical Systems, Lighting (incl. Lumileds) and Domestic Appliances and Personal Care, as well as the Philips entities Consumer Healthcare Solutions, Corporate Technologies
(including Philips Research and Philips Applied Technologies (except for the parts that move to PSI), the Lifestyle, Healthcare and Technology Incubators and the Molecular Healthcare Business) and Corporate Investments (including Ommic)) and their
commercial successors; 

  

	 	12.3.3	Making, having made, selling or otherwise disposing of end-user products directed to 

 

	 	(i)	the consumer market (including any kind of personal care and domestic appliances); 

 

	 	(ii)	the professional and consumer medical markets and the professional and personal healthcare-and wellness markets; or 

 

	 	(iii)	for the professional, consumer and special lighting markets, whether based on lamps or on solid state devices; 

 

					
		  	20	  	

	 	12.3.4	Making or having made any type of semiconductor products (whether in the form of a die, wafer or packaged chip) for incorporation into any Philips products, systems,
applications or services; 

  

	 	12.3.5	Making, setting or otherwise disposing of such semiconductor products as standalone products to third parties, provided that standalone semiconductor products falling
within the Restricted Activity may only be sold or otherwise disposed of with the written consent of PSI; 

  

	 	12.3.6	making, using, selling, licensing and/or otherwise disposing of any software product that does not contain Business Software originating from and marketed by PSI Group
separately or in combination with integrated circuits, either as a standalone product or bundled with any other Philips product, device, system, application or service; 

 

	 	12.3.7	making, using, selling and/or otherwise disposing of any demonstration or evaluation tools or kits for any of Philips products, systems or applications;

  

	 	12.3.8	Developing or conducting incubands or ventures, spinning-out or spinning-off any business activities of Philips Group, or creating business out of Philips Group’s
research and development activities, within the Restricted Activity as long as the total activities of any such business separately has revenues less than 50 million euros per year; 

 

	 	12.3.9	Providing research, development and engineering facilities with clean room, material analysis, prototyping, sampling, small series production, verification, testing,
and/or offering related services to third parties; 

  

	 	12.3.10	Acquiring a controlling interest in another company or entity, provided that the commercial activities of such company or entity failing within the Restricted Activity
did not generate more than hundred million euros of revenue in the fiscal year preceding the year in which the acquisition is made. In the event that an acquisition should occur of a company or entity with a revenue above this threshold, then Royal
Philips will enter into good faith negotiations with PSI Group for the sale of such competing commercial activities to PSI Group; 

  

	 	12.3.11	Acquiring a non-controlling interest in another company or entity, provided that if such company or entity is primarily engaged in activities falling within the
Restricted Activity, such interest shall not exceed 10 per cent of the voting stock ordinarily entitled to vote in the election of directors of such company or entity; 

 

	 	12.3.12	Holding any securities or having any other interest in another company or entity, the main activity of which is to make, select, hold and/or manage investments in
start-up or other businesses, or having any interest in any investment made, held or managed by such company or entity, provided that: 

  

	 	i.	Royal Philips is not able to control or direct such other company or entity in any manner with respect to such investments; and 

 

	 	ii.	Royal Philips is not able to control the management or direct the activities of any such company or entity in which such investment has been made.

  

	 	12.3.12	Continue its interest in TSMC as may vary from time to time, provided that an increase of its interest may only result from financial transactions not initiated by
Royal Philips. 

  

					
		  	22	  	

 For the avoidance of doubt, the provisions of this clause 12.3 shall not be construed as
broadening the scope of the restrictions in clause 12.1, nor as affecting the scope of any licenses granted under this Agreement. 
  

	12.4	If Royal Philips is acquired 

If Royal Philips is acquired (whether by merger, acquisition or otherwise) by any person who is not an Associated Company of Philips
(“the Acquirer”), this non-compete clause shall not apply in respect of any activities of the Acquirer or any of its Associated Companies (excluding Royal Philips). 

 

	13	CLAIMS AND LIABILITY 

 Any
claim for a breach of any representations, warranties, covenants or undertakings contained in this Agreement shall only be enforceable by PSI Group against Royal Philips in accordance with the provisions of the Stock Purchase Agreement, and the
liability and the limitations on such liability in respect of any breach of such representations, warranties, covenants and undertakings shall be determined solely in accordance with the terms of the Stock Purchase Agreement. 

 

	14	TERMINATION 

 After the
Closing Date this Agreement cannot be terminated or rescinded. 
  

	15	NOTICES 

 All notices or
other communications hereunder shall be given in accordance with Clause 10.1 of the Stock Purchase Agreement to the addressees provided therein, as well as: 

in respect of Royal Philips to; 

Philips Intellectual Property & Standards 

Building WAH 

Prof. Holstlaan 6 

5656 AA Eindhoven 

P.O. Box 220 

5600 AE Eindhoven 

The Netherlands 

F.a.o. Counseling Executive 

Fax no.: *** 
 in
respect of PSI to: 
 NXP B.V. 

High Tech Campus 60 

5656 AG Eindhoven 

The Netherlands 

F.a.o. General Counsel 
  

					
		  	22	  	

	16	NO ASSIGNMENT 

 This
Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. Save as explicitly provided otherwise herein, neither this Agreement nor any right or obligation hereunder shall be assignable by
either Party, in whole or in part, to any third party without the prior written consent of the other Party. 
  

	17	MISCELLANEOUS 

  

	 	17.1	No implied license 

Except as expressly provided in this Agreement, nothing contained in this Agreement shall be construed as implicitly granting a license or
any other right under Patents, Know-How, Software, Trademarks or Domain Names. 
  

	 	17.2	No agency 

 Nothing
contained in this Agreement shall be deemed or construed to constitute or create an agency, association, joint venture or partnership between the Parties. 
  

	18	SEVERABILITY 

 If any one
or more of the provisions of this Agreement is determined to be invalid or unenforceable by any court of competent jurisdiction, such finding shall not invalidate the remainder of this Agreement which shall remain in full force and effect as if the
provision(s) determined to be invalid or unenforceable had not been a part of this Agreement. In the event of such finding of invalidity or unenforceability, the Parties will endeavour to substitute forthwith the invalid or unenforceable
provision(s) by such effective provision(s) as will most closely correspond with the original intention of the provision(s) so voided. 
  

	19	ENTIRE AGREEMENT 

  

	19.1	This Agreement sets forth the entire understanding and agreement between the Parties as to the subject matter of this Agreement and supersedes, cancels and merges all
prior agreements, negotiations, commitments, communications and discussions between the Parties relating to the subject matter hereof. 

  

	19.2	No modification or amendment of this Agreement shall be binding upon either Party unless made in writing and signed by a duly authorized representative of each of the
Parties hereto. 

  

	19.3	It is acknowledged and agreed that the performance by the Parties of their obligations pursuant to this Agreement shall by no means result in any obligation on the part
of either Party to enter into any further agreement containing obligations for either Party beyond the obligations contained herein or to realize any transaction with the other Party with respect to the subject matter hereof or otherwise, including
without limitation, any agreement or transaction concerning the supply of services by either Party to the other. 

  

	20	APPLICABLE LAW AND JURISDICTION 

  

	20.1	Dutch law 

 This Agreement
shall be governed by and construed in accordance with the laws of The Netherlands, regardless of its conflict of law principles. 
  

					
		  	23	  	

	20.2	Jurisdiction 

 Any dispute
between the Parties arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination, shall be submitted to the competent courts of The Hague, The Netherlands, without prejudice to the
right of either Party to seek injunctive relief in any place where an infringement of its rights occurs or threatens to occur. 
 IN WITNESS
WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representatives on 28 September 2006. 
  

									
	Koninklijke Philips Electronics N.V,	 		 	Philips Semiconductors International 8.V.
			
	
 

	 		 	
 

	(signature)	 		 	(signature)
					
	Name:	 	E. Coutinho	 		 	Name:	 	

	Title:	 	GENERAL SECRETARY	 		 	Title:	 	General Counsel

   

					
		  	24	  	

 ANNEX 1 Transfer Patents 

*** 
  

 25 

 ANNEX 1A PCM Transfer Patents 

*** 
  

 26 

 ANNEX 2 Invention Disclosures 

*** 
  

 27 

 ANNEX 3 GMR Philips Patents 

*** 
  

 28 

 ANNEX 4 Trademarks 

*** 
  

 29 

 ANNEX 5 Domain Names 

*** 
  

 30 

 ANNEX 6 PSI BUs Products 

*** 
  

 31 

 ANNEX 7 PSI EBs Products 

*** 
  

 32 

 ANNEX 8 PSI SW Products 

*** 
  

 33 

 ANNEX 9A Decisions of the CTO Council with regard to the Integral Roadmaps of PSI BUs 

 *** 
  

 34 

 ANNEX 9B Integral Roadmaps of PSI BUs 

*** 
  

 35 

 ANNEX 10A Decisions of the CTO Council with regard to the Rolling Financial Forecasts of
PSI EBs 
 *** 
  

 36 

 ANNEX 10B Rolling Financial Forecasts of PSI EBs 

*** 
  

 37 

 ANNEX 11A Decisions of the CTO Council with regard to the Rolling Financial Forecasts of
PSI SW 
 *** 
  

 38 

 ANNEX 11B Rolling Financial Forecasts of PSI SW 

*** 
  

 39 

 ANNEX 12A Deed of Transfer of Transfer-Patents 

 

 40 

 DEED OF TRANSFER OF PATENTS 

THE UNDERSIGNED: 
  

	1.	Koninklijke Philips Electronics N.V., a limited liability company incorporated in the Netherlands, with corporate seat in Eindhoven, the Netherlands, and address
at Groenewoudseweg 1, Eindhoven, the Netherlands 

 (“Royal Philips”); 

and 
  

	2.	Philips Semiconductors International B.V., a limited liability company incorporated in the Netherlands, with corporate seat in Eindhoven, the Netherlands, and
address at High Tech Campus 60, Eindhoven, the Netherlands 

 (“PSI”), 

hereinafter also collectively referred to as the “Parties”, 

HAVE AGREED AS FOLLOWS: 
  

	1.	Definitions 

 When used in
this Deed, the following capitalized terms shall have the meaning set forth below: 
 “Annex” shall mean the
annex to this Deed [Drafting note: This Annex to list the Transfer-Patents as identified in Annex 1, and the (Patents on) invention disclosures as identified in Annex 2, of the Intellectual Property and License Agreement, in a format to be agreed
upon]. 
 “Associated Companies” shall mean any one or more entities, which is (are) directly or indirectly
owned or controlled by Royal Philips or PSI, respectively, but any such entity shall only be deemed an Associated Company for the period such ownership or control exists. For the purposes of this definition, (i) Royal Philips or PSI shall be
deemed to own and/or to control an entity if more than 50% (fifty per cent) of the voting stock of such entity, ordinarily entitled to vote for the election of directors (or, if there is no such stock, more than 50% (fifty per cent) of the ownership
of or control in such entity) is held by and consolidated in the annual accounts of Royal Philips or PSI, respectively, and (ii) PSI and its Associated Companies shall not be deemed Associated Companies of Royal Philips, irrespective of Royal
Philips’ share in PSI; 
 “Deed” shall mean this deed of transfer of the Patents listed in the Annex;

 “Patents” shall mean any patents, petty patents, provisionals, utility models or applications therefor,
including any divisions, continuations, continuations in part, re-examinations, renewals and re-issues thereof in any country of the world; 
  

	2.	Transfer of ownership Patents; license to Royal Philips 

On certain terms and conditions as specified in an intellectual property transfer and license agreement dated 28 September 2006
concluded between the Parties to this Deed, Royal Philips has assigned and 
  

 41 

 
agreed to transfer and cause its relevant Associated Companies to transfer the legal title to the Patents listed in the Annex to PSI: 

 

	 	(i)	subject to Royal Philips and its Associated Companies retaining a license under such Patents; 

 

	 	(ii)	subject to all prior commitments and prior undertakings vis-à-vis third parties entered into by Royal Philips and its Associated Companies and all arrangements
between (a) entities belonging to PSI and its Associated Companies and (b) entities remaining with Royal Philips and its Associated Companies; 

  

	 	(iii)	in the event PSI agrees with a third party to pledge, or otherwise encumber, any of the Patents, subject to the obligation of PSI to agree with such third party that
such third party shall respect the licenses mentioned under (i) and the prior commitments, prior undertakings and arrangements under (ii), and that such third party shall impose these obligations on any other beneficiary/transferee of any of
the Patents by way of a perpetual clause; and 

  

	 	(iv)	in the event that (a) any of the Patents listed in the Annex is pledged, (b) PSI is under the obligation to register, or otherwise intends to register, such
pledge at the relevant patent authorities, and (c) the license retained by Royal Philips and its Associated Companies cannot be secured in the registration of the pledge, subject to the obligation of PSI to register such license at the relevant
patent authorities prior to registering such pledge. 

 and PSI has accepted such assignment and transfer.

  

	3.	Variation to Deed 

 No
variation, extension, cancellation or translation of any expressed terms of this Deed (including the Annex) shall be binding upon Royal Philips unless made in writing and signed by a duly authorized representative of Royal Philips. 

 

	4.	Additional assignment documents; further assurance 

In the event that in addition to this Deed PSI has to submit other documents to patent authorities in order to effectuate the recordal of
the assignment and transfer of the Patents listed in the Annex and the license to Royal Philips and its Associated Companies under such Patents, PSI hereby warrants and guarantees that such other documents will not contain language that in any way
prejudices the provisions of this Deed. Royal Philips and PSI shall, at each other’s request, execute and do (or procure to be executed and done by any of their respective Associated Companies) all such deeds, documents, acts and things as the
requesting party may from time to time reasonably require in order to effectuate or to formalize the transfer of the Patents to PSI on a jurisdiction by jurisdiction basis, to cause the Patents to be recorded at the relevant patent registers around
the world in the name of PSI or its designated Associated Companies, and to cause the license under the Patents retained by Royal Philips and its Associated Companies to be recorded at the relevant patent registers around the world. 

 

	5.	Observance legal requirements 

PSI undertakes to observe and act in accordance with all applicable legal conditions and terms required in order to effectuate the
recordal of the assignment and transfer of the Patents listed in the Annex and the license to Royal Philips and its Associated Companies under such Patents. 
  

 42 

	6.	Power of Attorney 

 Royal
Philips hereby grants full and irrevocable power of attorney to PSI and its Associated Companies, to submit this Deed and the Annex thereto (and, where necessary, a translation thereof) to the patent authorities of the territories in which the
Patents listed in the Annex are registered or applied for, and to request those authorities to record in the appropriate registers: 
  

	 	(i)	the transfer of the legal title to the Patents listed in the Annex from Royal Philips or any of its Associated Companies to PSI or the relevant Associated Company
indicated by PSI; and 

  

	 	(ii)	the license under such Patents from PSI or such relevant Associated Company to Royal Philips and its Associated Companies. 

 

	7.	Costs for recordal 

 The
costs for the recordal of the assignment and transfer of the Patents in the relevant registers will be borne by PSI. 
  

	8.	Applicable law and jurisdiction 

This Deed shall be governed by and construed in accordance with the laws of The Netherlands, regardless of its conflict of law principles.
Any dispute between the Parties arising out of or in connection with this Deed, including any question regarding its existence, validity or termination, shall be submitted to the competent courts of The Hague, The Netherlands, without prejudice to
the right of either Party to seek injunctive relief in any place where an infringement of its rights occurs or threatens to occur. 
 IN
EVIDENCE WHEREOF, the Parties have caused this Deed to be signed by their duly authorized representatives on [            ] 2006. 

 

					
	Koninklijke Philips Electronics N.V.	 		  	 [Philips Semiconductors International B.V.]

[NXP B.V.]

			
	  
	 		  	  

	(signature)	 		  	(signature)
			
	Name:	 		  	Name:
	Title:	 		  	Title:

   

 43 

 Annex 12B Annex to the Deed of Transfer of Transfer—Patents 

 

 44 

 Annex 12B to IPTLA 

This Annex to list the Transfer-Patents as identified in Annex 1, and the (Patents on) invention disclosures as identified in Annex 2, of the intellectual
Properly and License Agreement, in a format to be agreed upon. 
  

 45 

 ANNEX 13A Deed of Transfer of Trademarks and Domain Names 

 

 46 

 DEED OF TRANSFER OF TRADEMARKS AND DOMAIN NAMES 

THE UNDERSIGNED: 
  

	1.	Koninklijke Philips Electronics N.V., a limited liability company incorporated in the Netherlands, with corporate seat in Eindhoven, the Netherlands, and address
at Groenewoudseweg 1, Eindhoven, the Netherlands 

 (“Royal Philips”); 

and 
  

	2.	Philips Semiconductors International B.V., a limited liability company incorporated in the Netherlands, with corporate seat in Eindhoven, the Netherlands, and
address at High Tech Campus 60, Eindhoven, the Netherlands 

 (“PSI”), 

hereinafter also collectively referred to as the “Parties”, 

HAVE AGREED AS FOLLOWS: 
  

	1.	Definitions 

 When used in
this Deed, the following capitalized terms shall have the meaning set forth below: 
 “Annex” shall mean any
annex(es) to this Deed; 
 “Associated Companies” shall mean any one or more entities, which is (are) directly
or indirectly owned or controlled by Royal Philips or PSI, respectively, but any such entity shall only be deemed an Associated Company for the period such ownership or control exists. For the purposes of this definition, (i) Royal Philips or
PSI shall be deemed to own and/or to control an entity if more than 50% (fifty per cent) of the voting stock of such entity, ordinarily entitled to vote for the election of directors (or, if there is no such stock, more than 50% (fifty per cent) of
the ownership of or control in such entity) is held by and consolidated in the annual accounts of Royal Philips or PSI, respectively, and (ii) PSI and its Associated Companies shall not be deemed Associated Companies of Royal Philips,
irrespective of Royal Philips’ share in PSI; 
 “Deed” shall mean this deed of transfer of the Trademarks
and Domain Names; 
 “Domain Names” shall mean the registered domain names and applications therefor as listed
in Annex 2 to this Deed; 
 “Trademarks” shall mean the registered trademarks and applications therefor as
listed in Annex 1 to this Deed. 
  

 47 

	2.	Transfer of ownership Trademarks and Domain Names 

On certain terms and conditions as specified in an intellectual property transfer and license agreement of even date herewith concluded
between the Parties to this Deed, Royal Philips has assigned and agreed to transfer, and cause its relevant Associated Companies to assign and transfer the legal title to the Trademarks, and the goodwill attached to and represented by such
Trademarks, and the Domain Names to PSI, subject to all prior commitments and prior undertakings vis-à-vis third parties entered into by Royal Philips and its Associated Companies, and PSI has accepted such assignment and transfer.

  

	3.	Variation to Deed 

 No
variation, extension, cancellation or translation of any expressed terms of this Deed (including the Annexes) shall be binding upon Royal Philips unless made in writing and signed by a duly authorized representative of Royal Philips. 

 

	4.	Additional assignment documents; further assurance 

In the event that in addition to this Deed PSI has to submit other documents to trademark and domain name authorities in order to
effectuate the recordal of the assignment and transfer of the Trademarks and Domain Names, PSI hereby warrants and guarantees that such other documents will not contain language that in any way prejudices the provisions of this Deed. Royal Philips
and PSI shall, at each other’s request, execute and do (or procure to be executed and done by any of their respective Associated Companies) all such deeds, documents, acts and things as the requesting party may from time to time reasonably
require in order to effectuate or to formalize the transfer of the Trademarks and Domain Names to PSI on a jurisdiction by jurisdiction basis, and to cause the Trademarks and Domain Names to be recorded at the relevant trademark and domain name
registers around the world in the name of PSI or its designated Associated Companies. 
  

	5.	Observance legal requirements 

PSI undertakes to observe and act in accordance with all applicable legal conditions and terms required in order to effectuate the
recordal of the assignment and transfer of the Trademarks and Domain Names. 
  

	6.	Power of Attorney 

 Royal
Philips hereby grants full and irrevocable power of attorney to PSI and its Associated Companies, to submit this Deed and the Annexes thereto (and, where necessary, a translation thereof) to the trademark and domain name authorities of the
territories in which the Trademarks and Domain Names are registered or applied for, and to request those authorities to record in the appropriate registers the transfer of the legal title to the Trademarks and the Domain Names from Royal Philips or
any of its Associated Companies to PSI or the relevant Associated Company indicated by PSI. 
  

	7.	Costs for recordal 

 The
costs for the recordal of the assignment and transfer of the Trademarks and Domain Names in the relevant registers will be borne by PSI. 
  

	8.	Applicable law and jurisdiction 

This Deed shall be governed by and construed in accordance with the laws of The Netherlands, regardless of its conflict of law principles.
Any dispute between the Parties arising out of or in 
  

 48 

 connection with this Deed, including any question regarding its existence, validity or
termination, shall be submitted to the competent courts of The Hague, The Netherlands, without prejudice to the right of either Party to seek injunctive relief in any place where an infringement of its rights occurs or threatens to occur.

 IN EVIDENCE WHEREOF, the Parties have caused this Deed to be signed by their duly authorized representatives on 28 September
2006. 
  

					
	Koninklijke Philips Electronics N.V.	 		  	Philips Semiconductors International B.V.
			
	  
	 		  	  

	(signature)	 		  	(signature)
			
	Name:	 		  	Name:
	Title:	 		  	Title:

  

 49 

 ANNEX 13B Annex to the Deed of Transfer of Trademarks and Domain Names 

*** 
  

 50 

 ANNEX 14 Third Party Software Agreements 

 

 51 

 ANNEX 14 to IPTLA 

No Third Party Software Agreements have been identified. 

 

 52 

 ANNEX 15 List of Patent License and Patent Ownership Agreements 

 

 53 

 *** 

Cross License Agreements 
  

							
	 Name Third Party
	  	 Name Agreement
	  	 Effective Date
	  	 Remarks

	***	  	Semiconductor/IC Patent License Exchange Agreement	  	December 20, 2003	  	According to Lion NEC is willing to broadly apply the divested company provision and is even interested in concluding a new broad cross license agreement with Lion.

				
	***	  	Patent Cross-License Agreement	  	May 31, 2003	  	Lion has indicated that this agreement is not critical to its business. Nevertheless, Philips will try to get Matsushita’ s consent to transfer the agreement. If
this consent cannot be obtained, Lion agrees to taking no further action.
				
	***	  	Erfahrungs- und Lizenzaustauschvertrag uber Halbleiteranordnungen	  	April 1, 1974	  	Agreement has expired, however, there are running-out rights. Lion has expressed its wish to get the benefits of such running-out rights based on a moral obligation
of Siemens to treat Lion in the same way as Philips treated Infineon.
				
	***	  	Patent License Agreement	  	January 1, 1998	  	Lion prefers to transfer the agreement, however, if the necessary consent cannot be obtained, Lion agrees to make use of the divested company
provision.
				
	***	  	Semiconductor/IC Patent Cross License Agreement	  	January 1, 2003	  	
				
	***	  	Semiconductor Patent Cross License Agreement	  	April 28, 2000	  	
				
	***	  	Semiconductor Patent Cross License Agreement	  	January 1, 1992	  	Lion prefers to transfer the agreement, however, if the necessary consent cannot be obtained, Lion agrees to make use of the divested company
provision.
				
	***	  	Vicinity Card and Item Management Patent Cross License Agreement	  	August 14, 2002	  	
				
	***	  	Technology Cooperation Agreement	  	January 1, 2004	  	

 Free License-in Agreements 
  

							
	 Name Third Party
	  	 Name Agreement
	  	 Effective Date
	  	 Remarks

	***	  	Settlement and Patent License Agreement	  	April 30, 2003	  	

 Royalty Bearing License-in Agreements 

 

							
	 Name Third Party
	  	 Name Agreement
	  	 Effective Date
	  	 Remarks

	***	  	Agreement	  	April 21, 2004	  	
				
	***	  	Patent License Agreement	  	December 31, 2000	  	
				
	***	  	ASIC Patent License Agreement	  	earlier of (a) the termination date of the VLSI Agreement and (b) March 26, 2000	  	
				
	***	  	Patent License Agreement	  	September 1, 1993	  	
				
	***	  	Patent License Agreement ISO15.693 - ISO18000-3 Mode 1	  	August 21, 2006	  	

 License-out Agreements 
  

							
	 Name Third Party
	  	 Name Agreement
	  	 Effective Date
	  	 Remarks

	***	  	Patent License Agreement	  	July 1, 1999	  	
				
	***	  	Patent License Agreement	  	February 1, 1999	  	
				
	***	  	Patent License Agreement	  	March 1, 2004	  	
				
	***	  	Patent License Agreement	  	June 30, 1999	  	
				
	***	  	Patent License Agreement	  	December 1, 2005	  	
				
	***	  	Patent License Agreement	  	January 1, 2000	  	
				
	***	  	Patent License Agreement	  	November 1, 2001	  	
				
	***	  	 Patent License

Agreement - ISO14.443
	  	November 16, 2004	  	
				
	***	  	 Patent License

Agreement - ISO14.443
	  	June 5, 2003	  	
				
	***	  	 ISO14.443-Reader

IC Non-Assertion Agreement
	  	August 1, 2005	  	
				
	***	  	 Patent License

Agreement -ISO15.693
	  	September 15, 2005	  	
				
	***	  	Patent License Agreement	  	December 1, 2003	  	
				
	***	  	C200DM License Agreement	  	January 1, 1991	  	
				
	***	  	Patent License Agreement ISO15.693 - ISO18000-3 Mode 1	  	August 21, 2006	  	

 Patent Ownership Agreements 

 

							
	 Name Third Party
	  	 Name Agreement
	  	 Effective Date
	  	 Remarks

	***	  	Vertrag	  	May 23, 2003	  	
				
	***	  	Patent Ownership Agreement	  	January 27, 2005	  	
				
	***	  	Joint Patent Ownership Agreement	  	October 17, 2005	  	

 Software Licence Agreement 

for *** 

(1)     Cabot Communications Limited 

(2)     Philips Electronics UK Limited 

Dated
22nd November 2004 

Ref: C20331 
  

							
	 Date
	  	Version	  	 Change
	  	 Who

	 140404
	  	1.01	  	Typo 12.2 + 17.2 + adaptation period in 2.1	  	Kp
	 9/11/04
	  	1.7	  	Modifications due to legal review	  	DS
	 22/11/04
	  	1.8	  	Final Version	  	DS

					
		  	Contents	  	
			
	 1.
	  	Definitions and interpretation	  	2
	 2.
	  	Adapting of the Software and Engineering Services	  	6
	 3.
	  	Manufacture and Exploitation Licences	  	9
	 4.
	  	Support and Maintenance Services	  	10
	 5.
	  	Upgrades to the Adapted Software	  	11
	 6.
	  	Financial Provisions	  	12
	 7.
	  	Taxes	  	13
	 8.
	  	Intellectual Property	  	14
	 9.
	  	Warranties and liability	  	14
	 10.
	  	Term, termination, and remedies	  	17
	 11.
	  	Marking of copies	  	18
	 12.
	  	Responsibilities of Licensee	  	18
	 13.
	  	Force Majeure	  	19
	 14.
	  	Risk of loss	  	19
	 15.
	  	Assignment and sub-licensing	  	19
	 16.
	  	Confidential Information	  	20
	 17.
	  	Notices	  	21
	 18.
	  	Applicable Law	  	22
	 19.
	  	Effect of Waiver	  	22
	 20.
	  	Export controls	  	22
	 21.
	  	Severability	  	22
	 22.
	  	Entire Agreement	  	22
	 23.
	  	Joint and several	  	22
	 24.
	  	Public Relations	  	23
	 Schedule 1: The Adapted Software
	  	24
	 Schedule 2: The Licensed Products
	  	25
	 Schedule 3: Engineering Services Fees, Software License Fee, the Advance and Royalties
	  	26
	 Schedule 4: Escrow Agreement
	  	28
	 Schedule 5: Support and Maintenance Services
	  	39
	 Schedule 6: The Licensee’s contact details for notices under this Agreement
	  	44
	 Schedule 7: The Statement of Work
	  	45

  

 i 

 This Agreement is made the
22nd day of November 2004 

Between: 
  

	(1)	Cabot Communications Limited (a company registered in England with no.02817269) whose registered office and principal trading address is Verona House, Filwood Road,
Bristol, BS16 3RY United Kingdom (“Cabot”) 

 and 

 

	(2)	Philips Electronics UK Limited (with registration no. 446897) whose registered office is The Philips Centre, Guildford Business Park, Guildford, Surrey, GU2 8XH
(“Licensee”) 

 Background: 

 

	(A)	Cabot has developed a library of standard software products, providing interactive digital TV solutions and is in the business of developing and marketing that
Software. 

  

	(B)	The Licensee is in the business of manufacturing (or procuring the manufacture of) Licensed Products. Once manufactured, the Licensee proposes to distribute those
Licensed Products to OEM Customers for integration into Digital TV Devices 

  

	(C)	The Licensee wishes to acquire a licence to enable it to integrate and/or embed the Software into Licensed Products and to manufacture and distribute Licensed Products
to OEM Customers. 

  

	(D)	Cabot agrees to provide Engineering Services and to grant a non-exclusive, non-transferable, Object Code only licence to integrate and/or embed the Software into
Licensed Products and to manufacture and distribute Licensed Products to OEM Customers. 

 It is agreed as follows:

  

	1.	Definitions and interpretation 

  

	1.1	In this Agreement, unless the context otherwise requires, the following words have the following meanings: 

 

			
	Acceptance Tests	  	Tests referred to in the Statement of Work or otherwise agreed by Cabot and the Licensee and carried out by the Licensee for the purpose of determining the Adapted
Software’s compliance with the Statement of Work.
		
	Adapted Software	  	The Software in an adapted form created in accordance with Clause 2.
		
	Affiliates	  	Any person which directly or indirectly Controls, is Controlled by or is under common Control with the party concerned, but only so long as such a Control
exists.

  

 26/06/2006 Page 2 of 47 

			
	Additional Release Fee	  	The fee payable to Cabot for additional Updates in accordance with clause 4.8 as set out in Schedule 3.
		
	Agreement	  	This Agreement (including any schedule or annexure to it and any document in agreed form).
		
	Confidential Information	  	All identifiable methodology, know-how, experience, data, tables and all other technical or commercial information relating to either party, its business, products, customers, and
which is obtained under this Agreement by one party and/or its Affiliates whether in human or machine readable form, and where the Licensee is the Receiving Party (defined below) shall include (without limitation) the Software, the Adapted Software
and the Statement of Work.
		
	Control	  	The power to secure that the affairs of that person are conducted in accordance with the wishes of that person either through the holding of shares, the power to appoint and remove
directors, contract, or otherwise, and “Controlled” shall be construed accordingly.
		
	Digital TV Devices	  	Digital set top boxes, digital TV recorders and digital television receiver devices manufactured by the Licensee’s OEM Customers.
		
	End Users	  	Customers who purchase for their own use Digital TV Devices incorporating both the Licensed Products and the Adapted Software.
		
	Engineering Services	  	Those services provided by Cabot or its subcontractors to the Licensee under Clause 2.2 to adapt the Software or any other consulting, development or miscellaneous services detailed
in the Statement of Work.
		
	Engineering Services Fees	  	Those fees payable to Cabot as compensation for carrying out the Engineering Services referred to in Schedule 3.
		
	Extended Support and Maintenance Fee	  	The fee payable to Cabot in consideration for the provisions of extended support services in accordance with Clause 4.8.
		
	Final Acceptance	  	The Licensee’s written or deemed acceptance in accordance with Clause 2.13 that the Adapted Software complies with the final acceptance criteria set out in the Statement of
Work.

  

 26/06/2006 Page 3 of 47 

			
	Identified Software	  	Includes, without limitation, Publicly Available Software and means software which is licensed pursuant to terms that:
		
		  	 •  grant, or purport to grant, to any third party any rights or immunities under Licensee’s or
Licensee’s Affiliates’ Intellectual Property or proprietary rights in any software or a derivative work thereof.

		
	Intellectual Property	  	All copyright, design rights, database rights, trade marks, service marks, domain name rights, patents, know-how and all other intellectual property rights, whether registered,
registerable or not and both present and future.
		
	Licence	  	The licences to the Adapted Software granted under Clauses 2. 1 and 3 of this Agreement.
		
	Licensed Product	  	Such of the Licensee’s digital television processing chip sets and other software, firmware or hardware identified in Schedule 2 to be manufactured by (or on behalf of) the
Licensee for use in Digital TV Devices the configuration of which is to be agreed and set out in the Statement of Work.
		
	Object Code	  	A code that is generated by translating, by means of a compiler of assembler, a program written in Source Code to a form which may be directly or indirectly executable by a
microprocessor.
		
	OEM Customers	  	OEM customers of the Licensee who wish to incorporate the Adapted Software and Licensed Products into Digital TV Devices and who have entered into a OEM Customer
Licence.
		
	OEM Customer Licence	  	The licence granted to OEM Customer for the Adapted Software as described in Clause 3.1.1.
		
	Publicly Available Software	  	Any software that requires as a condition of use, modification and/or distribution of such software, that other software incorporated into, derived from or distributed with such
software be:
		
		  	 •     disclosed or distributed in Source Code form;

		
		  	 •     be licensed for the purpose of making derivative works; or

		
		  	 •     be redistributable at no
charge.

  

 26/06/2006 Page 4 of 47 

			
	Royalties	  	The royalty referred to in Schedule 3.
		
	Sale, Sell, Sold	  	The disposal of any interest in the Licensed Product by way of sale, hire, lease, licence, sub-licence or transfer.
		
	Software	  	The versions of Cabot’s standard software libraries in a form existing at the date of this Agreement in Object Code version.
		
	Software Licence Fee	  	The software licence fee referred to in Schedule 3.
		
	Source Code	  	That form in which a computer program’s logic can be deduced by a human being reasonably skilled in the art, such as a printed listing of the program or a form from which a
printed listing can easily be generated.
		
	Statement of Work	  	The document that sets out the engineering services to be provided by Cabot to the Licensee under Clause 2.2 in relation to the Software including the estimated timetable for the
adaptation and delivery of the Adapted Software in accordance with this Agreement.
		
	 Support and

Maintenance Fee
	  	The fee set out in Schedule 4 and Clause 6 which is payment for the Support and Maintenance Services.
		
	 Support and

Maintenance Services
	  	The services to be provided by Cabot (or its subcontractors) referred to in Clause 4 and Schedule 4.
		
	Territory	  	United Kingdom, Eire, France, Spain, Germany, Italy, Finland, Netherlands.
		
	Updates	  	Error corrections, bug fixes and such interim releases of the Software as may be officially released by Cabot to its customers receiving Support and Maintenance Services. For the
avoidance of doubt, Updates shall not include new versions or developments.
		
	Upgrade, Upgraded Software	  	Functional enhancements, new features and/or versions of the Software.
		
	Working Days	  	Monday to Friday in every week, excluding Bank and Public holidays in the United Kingdom.

  

 26/06/2006 Page 5 of 47 

	1.2	The headings in this Agreement are for convenience only and shall not affect their interpretation. 

 

	1.3	In this Agreement any reference to a person shall be construed as a reference to any person, firm, company, corporation, government, state or agency of a state or any
association or partnership (whether or not having separate legal personality) or one or more of the foregoing and references to the singular shall include the plural and vice versa. 

 

	2.	Adapting of the Software and Engineering Services 

  

	2.1	Cabot hereby grants the Licensee a non-exclusive, revocable, non-transferable, Object Code only licence, to use the Software in the Territory, to adapt the Software in
Object Code only version so as to allow the Adapted Software to be embedded into such of the Licensed Products as may be set out in Schedule 2, subject to the terms of this agreement. 

 

	2.2	Cabot shall provide the Licensee with Engineering Services in accordance with the Statement of Work and the terms of this Agreement. In the event of any conflict
between the terms of this Agreement and the terms of the Statement of Work, then this Agreement shall prevail. The Engineering Services shall be provided on a non exclusive basis. 

 

	2.3	Cabot shall only be required to provide the Engineering Services in respect of the current versions of the Licensed Products identified in Schedule 2 (and where not
identified, the current versions made known to Cabot at the date of this Agreement). Unless otherwise agreed, any other adaptation or other consultancy services provided by Cabot at the request of the Licensee shall be subject to Cabot’s
standard fees applying at that time and the terms of this Agreement. 

  

	2.4	The Licensee shall provide such information and assistance as Cabot may reasonably require, at the Licensee’s cost, to enable Cabot to comply with its obligations
in this Agreement and the Statement of Work, including (without limitation) information concerning the configuration and design of the Licensed Products and the Licensee shall carry out such other tasks as may be referred to in the Statement of
Work. 

  

	2.5	Without prejudice to the generality of Clause 2.4, the Licensee shall make available at its own expense computer systems, sufficient hardware platforms, test streams,
development tools and appropriate personnel to the extent necessary for Cabot to perform the Engineering Services. Licensee shall ensure that any Licensee computer systems shall be fully functional, accompanied by complete and accurate user
documentation and that Licensee shall make technical support available in a timely manner as is reasonably required. 

  

	2.6	The Licensee acknowledges that Cabot shall only provide Engineering Services on the basis of the information provided by the Licensee under Clauses 2.4 and 2.5 which
(amongst other things) will help shape the Statement of Work. Accordingly except as expressly set out in the Statement of Work, the Licensee shall be responsible for the adaptation of the Software so as to ensure compatibility with the Licensed
Products within the scope of the Licence. 

  

 26/06/2006 Page 6 of 47 

	2.7	Subject to the Licensee’s prior written consent (such consent not to be unreasonably withheld or delayed, the Licensee shall pay or reimburse Cabot for all
reasonable expenses incurred to provide the Engineering Services, including, without limitation, expenses related to travel and the acquisition of any hardware or software systems specific to the Engineering Services in accordance with this
Agreement and the Statement of Work. 

  

	2.8	Subject to Clauses 2.4 to 2.7, Cabot shall use its reasonable endeavours to provide the Engineering Services in accordance with this Agreement by the dates specified in
the Statement of Work. 

  

	2.9	In the event that any obligation of Cabot to adapt the Software is delayed as a result of an act or omission of the Licensee then, without prejudice to Cabot’s
other rights and remedies: 

  

	 	2.9.1	the milestone date specified in the Statement of Work associated with the relevant obligation(s) (and the dates similarly associated with any subsequent obligation(s)
specified in the Statement of Work) shall be amended by a period of time equal to the period of such delay caused by the Licensee (or other such period as the parties agree); and 

 

	 	2.9.2	the Licensee shall reimburse Cabot for all costs which are reasonably incurred by Cabot as a direct result of such delay, provided that Cabot uses its reasonable
efforts to mitigate those costs and can provide evidence that these costs were incurred. 

  

	2.10	On completion of the Engineering Services, Cabot shall make the Adapted Software available to the Licensee on the terms of this agreement. 

 

	2.11	Cabot shall not be liable for any costs or expenses associated with any Acceptance Tests conducted by or on behalf of the Licensee (including, but without limitation,
any Digital Test Centre costs). 

  

	2.12	The Licensee shall give Cabot reasonable notice in writing of the scheduled date, time and location of any proposed Acceptance Tests, and any authorised representatives
of Cabot shall be entitled to attend the Acceptance Tests for the purposes for verifying any results. 

  

	2.13	 The Licensee shall notify Cabot in writing of any material failure of the Adapted Software to comply with the Statement of Work within 30 Working Days
of the Adapted Software being made available to the Licensee, such notice specifying the defect and the manner in which it fails so to comply, failing which the Licensee shall be deemed to have accepted the Adapted Software. If the Licensee
manufacturers and distributes the Licensed Products to OEM Customers, the licensee shall be deemed to have accepted the Adapted Software. In circumstances where such failure arises solely out of Cabot’s failure to provide the Engineering
Services in accordance with the Statement of Work, following receipt of any such notice, Cabot shall remedy the Adapted Software so as to ensure that it complies with the Statement of

  

 26/06/2006 Page 7 of 47 

	 	 
Work at its own cost, and this process shall be repeated until the Adapted Software is accepted (or is deemed to be accepted) by the Licensee. The Licensee acknowledges that Cabot shall not be
responsible for any failure of the Adapted Software arising out of any adaptation carried out by the Licensee. 

  

	2.14	The Licensee acknowledges that after the date of this Agreement and prior to manufacture and distribution of the Licensed Products the Licensee and Cabot may wish to
make announcements and other publicity about the adaptation of the Software into the Licensed Products as detailed in Clause 24. Accordingly, the manufacture and distribution of defective Licensed Products may affect the goodwill and reputation of
Cabot. If the Adapted Software fails to meet the acceptance criteria referred to in the Statement of Work, the Licensee shall not manufacture or distribute Licensed Products incorporating or bundled with the Adapted Software (or allow any other
person to do so) unless: 

  

	 	2.14.1	appropriate remedies are executed (by Cabot where notified under Clause 2.13, and in all other instances by the Licensee) on the Adapted Software and approved by Cabot
in writing; or 

  

	 	2.14.2	Cabot otherwise approves that manufacture and distribution in writing. 

  

	2.15	Cabot shall not perform any actions in a manner that would require any Adapted Software, Software or any derivative work thereof to be licensed as Publicly Available
Software, including without limitation: 

  

	 	2.15.1	incorporating Identified Software into such Adapted Software, software or any derivative work thereof; 

 

	 	2.15.2	combining Identified Software with Adapted Software or any derivative work thereof; 

 

	 	2.15.3	distributing Identified Software in conjunction with the Adapted Software or any derivative work thereof; or 

 

	 	2.15.4	using Identified Software in the development of a derivative work of the Adapted Software. 

 

	2.16	For the purposes of clause 2.15. by means of example and without limitation, any software modules or packages licensed or distributed under any of the following licence
or distribution model shall qualify as Identified Software: 

  

	 	2.16.1	The GNU General Public Licence (GPL) or Lesser/Library GPL (LGPL); 

  

	 	2.16.2	The Artistic Licence; 

  

	 	2.16.3	Mozilla Public Licence; 

  

	 	2.16.4	Common Public Licence; 

  

	 	2.16.5	Sun Community Source Licence (SCSL); and 

  

	 	2.16.6	Sun Industry Standards Source Licence (SISSL). 

  

 26/06/2006 Page 8 of 47 

	2.17	Cabot hereby indemnifies Licensee and Licensee’s Affiliates against and holds them harmless from any damages or costs arising from or in connection with any
violation or breach of the provision of clause 2.15 and Cabot shall reimburse all costs and expenses incurred by Licensee or Licensee’s Affiliates in defending any claim, demand, suit or proceeding arising from or in connection with such
violation or breach. 

  

	3.	Manufacture and Exploitation Licences 

  

	3.1	In addition to the licence granted in clause 2.1, Cabot hereby grants the following licences to the Licensee for the duration of this Agreement subject to the terms of
this Agreement and for the following purposes only:- 

 Bundling of the Adapted Software 

 

	 	3.1.1	subject to Clause 3.2, a non-exclusive, non-transferable, Object Code only licence to use the Adapted Software to market, distribute and Sell Licensed Products in the
Territory in conjunction with the Adapted Software to OEM Customers to enable OEM Customers to install, integrate and/or embed Licensed Products and the Adapted Software together into Digital TV Devices and to support and maintain such Licensed
Products in the Territory. Licensee shall not allow copies of the Adapted Software to be used by or supplied to the OEM Customers until the OEM Customers have first entered into a written licence agreement ensuring equivalent levels of protection
for the Apdated Software as are contained in this agreement with the Licensee and/or Cabot permitting the OEM Customers to install, integrate and/or embed the Adapted Software together with the Licensed Products into Digital TV Devices in the
Territory only and ensuring the equivalent protection for Cabot’s Confidential Information and Intellectual Property as provided by this Agreement (“the OEM Customer Licence”) and provided that the Licensee informs Cabot in writing of
any breach or suspected breach of the OEM Customer Licence immediately on it becoming aware of the same and the Licensee ensures that the OEM Customers comply with the terms of those licences. For the avoidance of doubt, the Licensee shall ensure it
does not allow OEM Customers to use the Adapted Software other than in conjunction with the Licensee’s Licensed Products and the OEM Customer’s own Digital TV Devices. Where the “OEM Customer” enters into the OEM Customer License
with the Licensee, The Licensee shall ensure that the OEM Customers Licence terminates automatically on termination or expiry of this Agreement only to the extent that the OEM Customer Licence relates to the use of the Adapted Software.

  

	3.2	The Licensee may make such copies of the Adapted Software as are necessary for the purposes of exercising the rights granted to the Licensee under Clause 3.1 above,
provided that all such copies shall be subject to the terms of this Agreement 

  

	3.3	The Licensee may not sub-licence the rights granted under this Agreement or otherwise allow any third parties to use the Adapted Software, except in accordance with
Clauses 3.l and 3.2. 

  

 26/06/2006 Page 9 of 47 

	4.	Support and Maintenance Services 

  

	4.1	Cabot shall use its reasonable commercial efforts to provide the Support and Maintenance Services in accordance with Schedule 4 only in respect of Adapted Software used
by The Licensee, OEM Customers and End Users who are located within the Territory. 

  

	4.2	Cabot shall not be obliged to provide the Support and Maintenance Services: 

 

	 	4.2.1	where the malfunction results from any modifications of the Adapted Software made by the Licensee of its own volition; 

 

	 	4.2.2	in respect of any version of the Adapted Software except (i) the then current version, and (ii) the immediately preceding version for a period of 6 months
after it is first superseded; 

  

	 	4.2.3	where the Adapted Software is used with Licensed Products other than those referred to in Schedule 2; 

 

	 	4.2.4	in respect of any malfunction in the Licensed Products not caused by the Adapted Software; 

 

	 	4.2.5	in respect of any malfunction in the Licensed Products or Adapted Software not caused solely by a failure of Cabot to provide the Engineering Services in accordance
with this Agreement; 

  

	 	4.2.6	in respect of any malfunction caused or contributed to by the failure of the Licensed Product to comply with the configuration and specification detailed in the
Statement of Work; 

  

	 	4.2.7	in respect of any malfunction caused or contributed to by the failure of the Licensed Product to be used properly and in accordance with instructions for use;

  

	 	4.2.8	in respect of any failure by the Licensee (or any person on the Licensee’s behalf) to properly install the Adapted Software on the Licensed Product

  

	 	4.2.9	during any period in respect of which the Support and Maintenance Fee has not been paid by the Licensee. 

 

	4.3	In consideration of the Support and Maintenance Services, the Licensee shall pay Cabot the Support and Maintenance Fee in accordance with Schedule 4 and Clause 6 and
before Cabot starts providing the Support and Maintenance Services. 

  

	4.4	In the event that Cabot incurs additional costs for specialised equipment required for providing the Support and Maintenance Services, the Licensee shall reimburse
Cabot’s reasonable costs within 30 days of the date of invoice, provided that Cabot acquires the Licensee’s prior written consent to incur these costs and thereafter provides the Licensee with receipts for such expenses.

  

 26/06/2006 Page 10 of 47 

	4.5	Cabot shall make an additional charge in accordance with its reasonable standard scale of charges for the time being in force for any services provided by Cabot at the
request of the Licensee, but which do not fall within the Support and Maintenance Services by virtue of any of the exclusions referred to in Clause 4.2 above or otherwise. 

 

	4.6	The Support and Maintenance Services shall be provided for a period of 12 months from the end of the warranty period as set out in Clause 9.5 and thereafter for further
periods of 12 months provided that 

  

	 	4.6.1	the then applicable Support and Maintenance Fee notified by Cabot shall apply to such further period of 12 months which shall be paid by the Licensee no later that 30
days prior to the end of the preceding 12 month period; 

  

	 	4.6.2	the Licensee may serve Cabot with not less than 60 days prior notice of intention not to renew the Support and Maintenance Services, such notice to expire on the end of
any such 12 month period. 

  

	4.7	Cabot reserves the right to discontinue the Support and Maintenance Services should Cabot, in its sole discretion, determine that continued support for any Adapted
Software is no longer economically practicable and shall give the Licensee at least 3 months prior written notice of any such discontinuance of Support and Maintenance Services and shall refund to the Licensee any unused Support and Maintenance Fee
that the Licensee may have prepaid with respect to the Adapted Software 

  

	4.8	If the Licensee pays the Extended Support and Maintenance Fee within 6 months and 30 days of the date when the first version of the Adapted Software is superseded by a
later version and provided that a new version of the Adapted Software has not been released in the immediately preceding 3 years in Schedule 3,. Cabot shall provide Support and Maintenance Services for the superseded Adapted Software for an
additional period of 2 years, provided that only one additional Update to the superseded Adapted Software shall be made available to the Licensee during the two year period. If the Licensee requires further Updates an Additional Release Fee shall be
payable 

  

	5.	Upgrades to the Adapted Software 

  

	5.1	From time to time Cabot may produce Upgrades to its Software. Cabot shall notify the Licensee of any Upgrade to its Software forming part of the Adapted Software that
becomes available during any period in respect of which the Licensee has paid the Support and Maintenance Fee. 

  

	5.2	If the Licensee wishes to acquire the Upgrade, it shall notify Cabot in writing to that effect. 

 

	5.3	Cabot shall carry out Engineering Services in respect of the Upgrades provided that the parties first agree a Statement of Work, Adaptation Fee, Software Licence Fee
and Royalties for that Upgrade. Once that adaptation has been completed Cabot shall provide the Upgrade to the Licensee. 

  

 26/06/2006 Page 11 of 47 

	5.4	The Upgrade will be licensed or sub-licensed to OEM Customers in accordance with Clauses 3.1.1 The Licensee may make the Upgrade available to OEM Customers and End
Users through the Licensee’s own resources and at the Licensee’s own cost. The Licensee shall not be entitled to any Upgrade during the period in which the Support and Maintenance Fee has not been paid. 

 

	5.5	The terms of this Agreement shall apply to the Upgrade which once adapted in accordance with Clause 5.3 shall fall within the definition of the Adapted Software for all
the purposes of this Agreement. 

  

	6.	Financial Provisions 

  

	6.1	In consideration of the Engineering Services, the Licensee shall pay to Cabot the Engineering Services Fees according to Schedule 3 and the payment terms set out in
Clause 6.10. 

  

	6.2	In consideration of the Licence, the Licensee shall pay the Software Licence Fee and the Royalties to Cabot according to Schedule 3 and Clause 6.3.

  

	6.3	The Licensee shall pay the Software Licence Fee in three equal instalments: 

 

	 	6.3.1	the first instalment shall be paid within 30 days of the date of this Agreement; 

 

	 	6.3.2	the second instalment shall be paid within 30 days of the delivery of the Adapted Software as set out in the Statement of Work; and 

 

	 	6.3.3	the third instalment shall be paid within 30 days of Acceptance (or deemed acceptance) by the Licensee of the Adapted Software in accordance with Clause 2.13,

 provided that in each case Cabot has submitted an invoice. 

 

	6.4	The Licensee shall within 15 days of the end of each calendar quarter period send to Cabot a statement showing the aggregate number of Licensed Products Sold by or on
behalf of the Licensee and any of its Affiliates during that period incorporating and in conjunction with the Adapted Software. 

  

	6.5	The Licensee shall remit the Royalties to Cabot with the statement referred to in Clause 6.4. 

 

	6.6	The Licensee shall keep separate records and accurate accounts sufficient to calculate the Royalties and shall permit the duly appointed representatives of Cabot to
inspect all such records and accounts at all reasonable times, on five Working Days written notification. Any audit or inspection and all information learned as a result thereof shall be subject to confidentiality obligations as set forth in Clause
16. The use of such information shall be solely for the purpose of such audit and in connection with any dispute arising from such audit. 

  

	6.7	 Cabot may engage an auditor of its choice to verify the information provided to Cabot in relation to the Royalties (“Independent
Auditor”) on terms which require the Independent Auditor to produce a report which certifies whether the sums reported by the Licensee under Clause 6.5 were accurate, but which also requires the Independent Auditor to keep the Confidential
Information of the Licensee 

  

 26/06/2006 Page 12 of 47 

	 	 
confidential. On the request of Cabot during the period of 90 days after the end of any 12 month period the Licensee shall give the Independent Auditor access to the records and accounts referred
to in Clause 6.6 to enable such persons to certify the accuracy of the information submitted by it in respect of that year pursuant to Clause 6.5. If the results of that report certify that the sums reported by the Licensee under Clause 6.5 were
accurate to within plus or minus 10% (ten per cent), the reasonable costs of the Independent Auditor incurred in the preparation of their report shall be paid by Cabot. Where the amount which Licensee stated in terms of Clause 6.5 is 10% less than
the amount which the Independent Auditor reports for the same period, then Licensee shall pay the reasonable costs of the Independent Auditor. 

  

	6.8	All payments under this Agreement shall be made in lawful United Kingdom currency, within thirty (30) days of the date of Cabot’s invoice or as otherwise
expressly specified in Schedule 3 of this Agreement. 

  

	6.9	Without prejudice to any other remedy which Cabot may have, if any sums due under this Agreement are not received by Cabot in cleared funds by the due dates referred to
Cabot may: 

  

	 	6.9.1	charge interest on the overdue amount at the rate of 4% above the base rate of the Bank of England for the time being from the due date until the overdue sums have been
received by Cabot in cleared funds; and/or 

  

	 	6.9.2	terminate this Agreement by 30 days notice in writing to the Licensee in the event of a failure to make any three consecutive payments due under this Agreement by or on
the due dates in any period of six calendar months. 

  

	6.10	Save in so far as otherwise expressly provided all amounts stated in this Agreement are expressed exclusive of value added tax (or other applicable sales tax that may
be deemed payable under applicable law) and any such sales tax arising in respect of any supply made hereunder shall be paid on the issue of a valid tax invoice. However for withholding tax clause 7.2 shall apply. 

 

	6.11	The Licensee shall make all payments to Cabot without any deduction or set off other than such amount (if any) as it is required to deduct by law.

  

	7.	Taxes 

  

	7.1	The Licensee shall pay, or reimburse Cabot for as the case may be, any taxes, except for withholding tax, subject to Clause 7.2, however designated, arising from or
based upon the fees due under this Agreement. 

  

	7.2	Cabot shall use reasonable efforts to obtain a tax exemption certificate (or the like) from the tax authorities in which the Licensee resides to entitle the Licensee to
claim an exemption from taxes imposed on and to be paid by the Licensee according to the laws of that territory. In the event Cabot is given relief from withholding tax, no income or other tax of any kind shall be deducted from the amount of any
license fee and/or royalties payable under this Agreement. As long as the Licensee has not received a copy of the aforementioned tax exemption certificate, the Licensee may deduct such taxes from the amount owed Cabot and shall pay them on behalf of
Cabot and shall upon Cabot request submit an official tax receipt issued by relevant tax authorities evidencing the payment. 

  

 26/06/2006 Page 13 of 47 

	8.	Intellectual Property 

  

	8.1	Cabot and the Licensee agree that all Intellectual Property in the Software and Updates shall be owned exclusively by Cabot. The Licensee shall not acquire any right
title or interest in the Software and Updates except as expressly set out in this Agreement. The Intellectual Property in the Statement of Work shall also be exclusively owned by Cabot, subject to any pre-existing Intellectual Property of the
Licensee specifically incorporated within those documents. 

  

	8.2	Except to the extent permitted by law, the Licensee shall not copy, adapt, develop, modify, disassemble, reverse engineer or otherwise use the Software, Adapted
Software or Upgraded Software other than as expressly set out in the licences above. There are no implied licenses granted under this Agreement, and as between Cabot and the Licensee, all rights, save for those granted under the Licence and the OEM
Customer Licence, shall remain exclusively with Cabot. 

  

	8.3	The Licensee shall immediately inform Cabot in writing as soon as it becomes aware of any infringement or suspected infringement of Cabot’s Intellectual Property
in the Software, Adapted Software or Upgraded Software. 

  

	9.	Warranties and liability 

  

	9.1	The Licensee warrants and undertakes to Cabot that, so far as it is aware, the information provided by the Licensee under Clauses 2.4 and 2.5 shall be true and accurate
in all material respects and that information together with any adaptation or modifications made to the Software by the Licensee under Clause 2.6 shall not breach the Intellectual Property of any third party. 

 

	9.2	Cabot warrants to the Licensee that to the best of Cabot’s knowledge that use by the Licensee, OEM Customer or End User of the Software and Adapted Software will
not infringe the Intellectual Property of any third party. 

  

	9.3	The Licensee acknowledges that the Adapted Software is derived from the Software, and other than as set out in the Statement of Work and in Clauses 9.4 and 9.5, Cabot
shall have no liability in respect of any failure of the Adapted Software to be suitable for use with Licensed Products or otherwise. 

  

	9.4	Cabot warrants that the Engineering Services shall be provided using reasonable skill and care. 

 

	9.5	Cabot warrants and undertakes to the Licensee that if the Adapted Software in a Licensed Product is demonstrated to Cabot’s reasonable satisfaction within 60 days
from the Final Acceptance, to materially fail to comply with the Statement of Work solely as a result of Cabot’s failure to provide the Engineering Services in the manner required by this Agreement, Cabot shall correct such defect or (at its
sole option) replace such copy of the Adapted Software free of charge provided that:- 

  

 26/06/2006 Page 14 of 47 

	 	9.5.1	the Licensed Product complies with the configuration and specification detailed in the Statement of Work; 

 

	 	9.5.2	the Adapted Software has been properly installed on the Licensed Product; 

  

	 	9.5.3	the Licensed Product has been used at all times properly and in accordance with instructions for use; 

 

	 	9.5.4	no alteration, modification or addition has been made to the Adapted Software after Final Acceptance without Cabot’s prior written consent;

  

	 	9.5.5	the alleged error was not caused by the adaptation carried out by the Licensee; and 

 

	 	9.5.6	the alleged error has been notified to Cabot within the warranty period specified in this Clause. 

 

	9.6	Each claim under Clause 9.5 shall be sent in writing to Cabot, specifying the nature of the defect. On receipt of such written claim, the Licensee shall grant access to
the Licensed Product in question to Cabot or its agent or representatives to remove it and to enable such persons to test or to inspect the Licensed Product and the Adapted Software at its premises. 

 

	9.7	Any Adapted Software replaced or corrected under this warranty shall be sent by Cabot to the Licensee carriage prepaid. 

 

	9.8	Except as otherwise provided in Clause 9, Cabot makes no other representations or warranties and all conditions warranties terms and undertakings expressed or implied
statutory or otherwise in respect of the Software or the Adapted Software and the provision of the Engineering Services, the Support and Maintenance Services and any services under this Agreement are hereby excluded, including (without limitation)
any warranties as to quality or fitness of the Adapted Software for any particular purpose. 

  

	9.9	Cabot does not warrant or undertake that the Software or the Adapted Software shall be free of viruses, disabling devices or errors. 

 

	9.10	Except in the event of a claim for indemnification made under clause 9.12 or for an uncured, material breach of any of the licences set forth in clauses 3.1, 3.2 and
3,3 by a party, neither party shall not be liable to the other party by reason of any negligence or any other tortiuous action or any representation (unless fraudulent), or any implied warranty, condition or other term, or under the express terms of
this Agreement, for: 

  

	 	9.10.1	any loss of anticipated revenues; or 

  

	 	9.10.2	any loss of anticipated savings; or 

  

	 	9.10.3	loss of profits; or 

  

	 	9.10.4	loss of business opportunities; or 

  

 26/06/2006 Page 15 of 47 

	 	9.10.5	loss of goodwill; or 

  

	 	9.10.6	damage to reputation; or 

  

	 	9.10.7	any indirect, special or consequential loss or damage, costs, expenses or other such claims for compensation whatsoever 

(whether caused by the negligence of that party, its employees or agents or otherwise) which arises out of or in connection with this
Agreement 
  

	9.11	The entire liability of Cabot in respect of any and all claims made against it by the Licensee by reason of any negligence or any other tortious action or any
representation (unless fraudulent), or any implied warranty, condition or other term, or under the express terms of this Agreement shall not exceed 125% of the amount of the Engineering Services Fees and the Software Licence fees and Royalties
received by Cabot and subject to Cabot’s liability for all claims not exceeding £ <Enter amount> 

  

	9.12	Notwithstanding anything to the contrary in this Agreement, each party’s liability to the other party: 

 

	 	9.12.1	for death or personal injury caused by the negligence of that party, its employees, agents or subcontractors; or 

 

	 	9.12.2	for damage suffered by that party as a result of any breach by the other party of the condition as to title or the warranty as to quiet possession implied by Section 12
of the Sale of Goods Act 1979 or Section 2 of the Supply of Goods and Services. Act 1982; or 

  

	 	9.12.3	for fraud (including, but not limited to, fraudulent misrepresentation) 

is not limited (but nothing in this Clause confers any right or remedy upon that party to which it would not otherwise be entitled).

  

	9.13	For the avoidance of doubt, unless otherwise stated in the Statement of Work, the Engineering Services shall be provided on the assumption that the Adapted Software is
for use in conjunction with the Licensed Products in the Territory only. 

  

	9.14	This clause defines the limits of Licensee’s liability to Cabot in respect of this Agreement whether in contract or tort including negligence and Cabot’s sole
remedies in respect of any act or default of Licensee. 

  

	9.15	Licensee will accept liability for direct physical damage to the tangible property of Cabot to the extent it is caused by the negligence of Licensee subject to the
exclusions set out in clause 9.10 and up to a maximum limit of £2,000,000 in the aggregate. 

  

	9.16	Except as provided in clauses 9.12 and 9.14, the Licensee’s total liability in respect of any one default, other than a default relating to the Licensee’s
obligation to pay the fees due under this agreement, in accordance with schedule 3, shall not exceed £500,000. If a number of defaults give rise to substantially the same loss or are attributable to the same or similar cause, then they shall
be regarded as giving rise to only one claim. Licensee will be afforded a reasonable opportunity to remedy any such default. 

  

 26/06/2006 Page 16 of 47 

	9.17	Except as expressly stated herein the Licensee hereby excludes all conditions and warranties implied, statutory or otherwise to the maximum extent permitted by law.

  

	10.	Term, termination, and remedies 

  

	10.1	This Agreement shall take effect on the date of this Agreement and shall continue unless or until terminated under Clauses 10.2, 10.2 or 10.4. 

 

	10.2	Either party may terminate this Agreement at any time by serving at least 12 months prior written notice to the other party to that effect, without liability.

  

	10.3	Either party (“the Innocent Party”) may terminate this Agreement without liability, by prior notice in writing at any time if the other (“the
Defaulting Party”):- 

  

	 	10.3.1	commits any material breach of this Agreement and (if capable of remedy) fails to remedy such breach within thirty (30) days after being given written notice to do so;
or 

  

	 	10.3.2	makes any voluntary arrangement with its creditors, or enters into administration or goes into liquidation (other than for the purposes of amalgamation or
reconstruction), or an encumbrancer takes possession, or a receiver is appointed, over any of its property or assets, or anything analogous to any of the foregoing occurs to the Defaulting Party under the law of any jurisdiction.

  

	10.4	Cabot may terminate this Agreement without liability, by prior notice in writing at any time in the event Control of the Licensee shall be transferred to persons other
than those exercising Control at the time of signing of this Agreement [or in the event assets or more than 15% of the Licensee are transferred to a competitor of Cabot and if Cabot has reasons to believe that this is contrary to its justified
business interests]. 

  

	10.5	The rights and remedies of Cabot and the Licensee set forth in this Agreement are not exclusive and are in addition to any other rights and remedies provided by
statute, at law, or in equity. 

  

	10.6	Notwithstanding termination of this Agreement, the Licensee shall be entitled to support and maintain Licensed Products previously sold to wholesalers, retailers, End
Users or OEM Customers or (subject to Clause 3.1) thereafter sold by OEM Customers in the Territory in accordance with the Licence and OEM Customer Licences, but for the avoidance of doubt shall not be entitled to install integrate and/or embed the
Adapted Software into Licensed Products from the moment of termination. Licensed Product and Digital TV Devices which incorporate the Adapted Software prior to termination may still be marketed and Sold, provided that any Royalties in respect of
these still accrue to Cabot and the provisions of this Agreement shall continue to apply for this purpose. For the avoidance of doubt, any sub-licences granted to the Licensee’s OEM Customers hereunder prior to termination shall remain
unaffected. 

  

 26/06/2006 Page 17 of 47 

	10.7	Notwithstanding termination of this Agreement before the acceptance by the Licensee of the Adapted Software in accordance with Clause 2.11, the Licensee shall be liable
to pay immediately the outstanding payments to Cabot in full. 

  

	10.8	The rights to terminate this Agreement given by this Clause 10 shall not prejudice any other right or remedy of either party in respect of the breach concerned (if any)
or any other breach. Clauses 3.1, 8, 9, 10, 11,16 and 20 shall survive termination of this Agreement. 

  

	11.	Marking of copies 

  

	11.1	The Licensee shall reproduce and maintain on all physical copies of the Adapted Software in its possession or control all trademark, copyright markings or legends that
appear on the Adapted Software furnished to the Licensee by Cabot or that are prescribed by Cabot by notice from time to time, and no other such markings or legends. 

 

	12.	Responsibilities of Licensee 

  

	12.1	The Licensee is responsible exclusively for the supervision, management, and control of the making and use of copies of Adapted Software provided for in this Agreement,
and its use of any of them. 

  

	12.2	The Licensee acknowledges the claims to rights in intellectual and tangible property set forth in Clause Error! Reference source not found, and the Licensee shall take,
and shall use reasonable endeavours to procure that its representatives, OEM Customers and End Users shall take, appropriate measures to prevent breaches of such rights including, without limitation, measures to restrict access of copies of the
Adapted Software to employees who need access to the same in order to exercise the rights granted under the Licence and the requirement of non-transfer and confidentiality agreements from those persons with respect to the Adapted Software, so as to
ensure equivalent levels of confidentiality and protection of Intellectual Property, as are provided by this Agreement. 

  

	12.3	Immediately on termination of this Agreement, the Licensee shall destroy all copies of Adapted Software in the Licensee’ possession or under its control, except
that:- 

  

	 	12.3.1	the Licensee may retain such copies of the Adapted Software as are necessary for the purposes of supporting and maintaining Licensed Products previously sold to End
Users in the Territory in accordance with the Licences; and 

  

	 	12.3.2	upon prior written authorisation from Cabot the Licensee may retain a single copy of the Adapted Software solely for archival purposes. 

 

	12.4	The Licensee shall keep records of, and account for, the Adapted Software and all copies made. Cabot may examine and take copies of those records at reasonable times.

  

 26/06/2006 Page 18 of 47 

	13.	Force Majeure 

  

	13.1	No party hereto shall be liable for any breach of its obligations hereunder resulting from causes beyond its reasonable control including but not limited to fires
strikes (of its own or other employees) lockouts insurrection or riots acts of terrorism war embargoes or delays in transportation inability to obtain supplies and raw materials requirements or regulations of any civil or military authority (an
“Event of Force Majeure”). 

  

	13.2	Each of the parties hereto agrees to give notice forthwith to the other upon becoming aware of an Event of Force Majeure such notice to contain details of the
circumstances giving rise to the Event of Force Majeure. 

  

	13.3	If a default due to an Event of Force Majeure shall continue for more than three months then either shall be entitled to terminate this Agreement. No party shall have
any liability to the other in respect of the termination of this Agreement as a result of an Event of Force Majeure. 

  

	14.	Risk of loss 

  

	14.1	The Licensee is responsible for the loss of, or damage to, copies of the Adapted Software. Cabot may furnish replacements of the Adapted Software for its then
current charges and during the term of this Agreement, but not later than the fifth (5) anniversary of the date of this Agreement. 

Within 30 days of the date of this Agreement, the parties shall execute a source code escrow agreement in the form of Schedule 4 (the
“Source Code Escrow Agreement”) hereto. In case of divergences, the terms of this Agreement shall prevail over the terms of the Source Code Escrow Agreement. 

Cabot shall place into escrow the source code of the Adapted Software in accordance with the provisions of the Source Code Escrow
Agreement. 
 All escrow fees (including fees payable to NCC Escrow International Limited in relation to variations made to the
standard NCC escrow agreement) shall be paid by the Licensee. 
  

	15.	Assignment and sub-licensing 

  

	15.1	Save as expressly set out in this Agreement the Licensee shall not assign or sub- licence any rights or obligations granted under this Agreement, or any of the Licences
in whole or in part to any third party. 

  

	15.2	Neither party shall assign this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld [provided that this
shall not in any way limit the right of Licensee to assign this Agreement to its Affiliate, on notice to Cabot]. 

  

 26/06/2006 Page 19 of 47 

	16.	Confidential Information 

  

	16.1	Any party receiving the Confidential Information (“the Receiving Party”) undertakes to the party disclosing Confidential Information (“the
Disclosing Party”) that:- 

  

			
	16.1.1	    	it shall not at any time disclose or reveal that Confidential Information to any person other than such of those directors, employees or professional advisors of the Receiving
Party who it is necessary should receive and consider the same for the purposes of this Agreement (“Permitted Recipient”);
		
	16.1.2	    	it and any Permitted Recipient shall use that Confidential Information solely for the purposes necessary to comply with its obligations or exercise its rights under this
Agreement;
		
	16.1.3	    	it and each Permitted Recipient shall treat and safeguard as private and confidential all that Confidential Information;
		
	16.1.4	    	it shall ensure that each Permitted Recipient to whom Confidential Information is to be disclosed is made aware of and shall observe the terms of this Clause 16 as if that person
had given the undertakings contained in this Clause 16 directly;
		
	16.1.5	    	it shall immediately upon written request by the Disclosing Party deliver to the Disclosing Party a list of all individuals to whom the Confidential Information has been
disclosed;
		
	16.1.6	    	it shall indemnify the Disclosing Party against all loss or damage which may arise from the unauthorised disclosure or use of the Confidential Information or any part of it in
breach of this Agreement by them or by any person to whom the Confidential Information has been disclosed by them.

  

	16.2	The provisions of Clause 16.1 shall not apply to the whole or any part of the Confidential Information to the extent that it is:- 

 

			
	16.2.1	    	in the public domain other than as a result of a breach of any obligation of confidentiality;
		
	16.2.2	    	required to be disclosed by law or any governmental organisation provided that the Receiving Party promptly notifies the Disclosing Party in writing of such requirement to enable
the Disclosing Party the reasonable opportunity to seek a protective order to preserve the confidentiality of such information;
		
	16.2.3	    	was known to the Receiving Party, prior to disclosure as demonstrated by documentary evidence, or
		
	16.2.4	    	becomes known to the Receiving Party from a source other than the Disclosing Party -legally entitled to disclose and without breach of any obligations of confidentiality,
or

  

 26/06/2006 Page 20 of 47 

			
	16.2.5	    	was independently developed by the Receiving Party without the benefit of data or Confidential Information received from the Disclosing Party ; which independent development the
Receiving Party shall have the burden of establishing by clear and convincing written evidence,
		
	16.2.6	    	was disclosed after written approval of the Disclosing Party; or
		
	16.2.7	    	was in the case of Licensee disclosed to an Affiliate, subject to confidentiality undertakings equivalent to those contained in this clause 16.

 

	17.	Notices 

  

	17.1	Any notice required or permitted under this Agreement shall be in writing and shall be sent to by first class post, hand delivery or fax. 

 

	17.2	Subject to Clause 17.3 below any such notice consent or other document shall be deemed to have been duly received: 

 

			
	17.2.1	    	If despatched by fax- 24 hours from the time of the despatch; or
		
	17.2.2	    	If despatched by prepaid post - 3 Working Days from the time of posting to the relevant party; or
		
	17.2.3	    	If despatched by hand delivery - at time of actual delivery.

  

	17.3	Unless otherwise notified in writing for the purpose of this Clause the postal addresses of the parties are:- 

 

			
	 Cabot
	  	Licensee:
		
	 Cabot Communications Ltd
  

Verona House
	  	 As set out in Schedule 6
  

		
	Filwood Road	  	
		
	Bristol	  	
		
	BSI6 3RY	  	
		
	Attention :***	  	
		
	Fax:+44 (0)117 958 4168	  	

  

	17.4	In proving service by post it shall be sufficient unless any relevant part of the postal service is affected by industrial action to prove that the envelope containing
the notice was duly stamped addressed and posted to the addresses specified in Clause 17.3 above. In proving service by fax it shall be sufficient to prove that it was properly addressed and dispatched to the numbers or address specified in Clause
17.3 above. 

  

 26/06/2006 Page 21 of 47 

	18.	Applicable Law 

  

	18.1	This Agreement shall be governed by, subject to, and construed according to the laws of England. The parties irrevocably agree that this Agreement shall be subject to
the exclusive jurisdiction of the English courts. 

  

	19.	Effect of Waiver 

  

	19.1	The waiver or failure of either party to exercise in any respect any right provided for in this Agreement shall not be deemed a waiver of any further or future right
hereunder. 

  

	20.	Export controls 

  

	20.1	Cabot believes that the Adapted Software it furnishes to the Licensee constitutes “technical data” for purposes of export control regulations of the United
Kingdom. The Licensee shall comply with all applicable UK export embargoes under any applicable law relating to the Adapted Software. 

  

	21.	Severability 

  

	21.1	If any provision of this Agreement is held to be unenforceable, it shall be deemed to be omitted from this Agreement, and the remaining provisions shall remain in full
force and effect unless that omission causes the Agreement to fail of its principle purpose. 

  

	22.	Entire Agreement 

  

	22.1	This Agreement constitutes the entire agreement and understanding between the parties with respect to its subject matter and the terms of this Agreement shall supersede
any previous agreements. 

  

	22.2	Each of the parties acknowledge and agree that in entering into this Agreement it does not rely on and shall have no remedy in respect of any statement representation
warranty term condition or understanding (whether negligently or innocently made, whether express or implied) of any person (whether a party to this Agreement or not) other than as may be expressly set out in this Agreement.

  

	22.3	Nothing in this Agreement shall operate to limit or exclude any liability for fraud. 

 

	23.	Joint and several 

  

	23.1	Where there are two or more parties to this Agreement as “Licensee” their liability under this Agreement shall be joint and several. 

 

 26/06/2006 Page 22 of 47 

	24.	Public Relations 

  

	24.1	The parties shall draft and issue a press release announcing the signing of this Agreement at a mutually agreed date and each party may include the information included
in such press release in subsequent advertisements, press releases or other publications without the other party’s prior written consent; provided, that such party includes proper attribution of the other party’s name. Following the
issuance of such press release, Cabot may also refer to Licensee as Cabot’s customer in Cabot’s sales and marketing materials and presentations. 

  

 26/06/2006 Page 23 of 47 

 IPTLA – Further arrangement in relation to Annex 15 

For any of the following patent cross-license agreements which will not be assigned to PSI Group and for which Clauses 9.1 and 9.2 of the IPTLA are
not applicable, Royal Philips shall, at the request of PSI, support an application for the grant of rights to PSI as a Divested Company of Royal Philips in accordance with Clause 9.3 of the IPTLA, to the extent required by such cross-license
agreement. 
  

					
	 Third Party
	    	 Name Agreement
	  	 Effective Date

	***	    	Patent Cross License Agreement	  	April 1, 2002
	***	    	License Agreement	  	October 1, 1994
	***	    	Patent Cross License Agreement	  	January 1, 1999
	***	    	Agreement	  	July 15, 1990
	***	    	Patent License Agreement	  	April 1, 1995
	***	    	Patent License Agreement	  	July 1, 1987
	***	    	Schutzrechts-Lizenztauschvertrag	  	January 1, 1990

 Schedule 1: The Adapted Software 

The following products developed by Cabot in a form existing at the date of this Agreement in Object Code version only:- 

*** 
 *** 

*** 
  

 26/06/2006  Page 24 of 47 

 Schedule 2: The Licensed Products 

*** 
  

 26/06/2006  Page 25 of 47 

 Schedule 3: Engineering Services Fees, Software License Fee, the Advance and Royalties

 Engineering Services Fees 

Integration services shall be invoiced as time and materials at: 

*** Euros/hour. 
 Full acceptance tests ***.

 Payment is due on acceptance. 

Support and Maintenance Fees – Standard 

*** per cent of the Software License Fee per annum for each stack listed below (under Software License Fees), except for: 

 

			
	 ***
	  	*** per annum
		
	 ***
	  	*** per annum
		
	 ***
	  	*** per annum

 Payment is due on acceptance

 Additional services *** per hour. 

Support and Maintenance Fees – Extended (Optional) 

Additional fees for extending the support and maintenance period for an additional two years. 

*** per annum. 
 Additional release fee ***

 Software Licence Fees 
  

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

  

 26/06/2006  Page 26 of 47 

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

 Payment is due on date of this Agreement. 

The Royalties 
  

					
		  	Number of Licensed Products Sold incorporating that Adapted Software and Licensed Products Sold in conjunction with that Adapted Software under the Licences by or on
behalf of the Licensee or any of its Affiliates, whether during or after termination of this Agreement
			
	 Adapted Software
	  	***	  	***
			
	 ***
	  	***	  	***
			
	 ***
	  	***	  	***
			
	 ***
	  	***	  	***

  

 26/06/2006  Page 27 of 47 

 Schedule 4: Escrow Agreement 

Escrow Agreement Between: 
  

	(1)	Cabot Communications Limited whose registered office is at Verona House, Filwood Road, Bristol, BS16 3RY United Kingdom (“the Owner”);

  

	(2)	Philips Electronics UK Limited (with registration no. 446897) whose registered office is 420 – 430 London Road, Croydon, Surrey, CR9 3QR until 15 August 2004,
and thereafter it will be at Philips Centre, Guildford Business Park, Guildford, Surrey, GU2 8XH (“the Licensee”) and 

  

	(3)	NCC ESCROW INTERNATIONAL LIMITED whose registered office is at Manchester Technology Centre, Oxford Road, Manchester Ml 7EF, ENGLAND (CRN: 3081952) (“NCC
Escrow”). 

 Preliminary: 
  

	(A)	The Licensee has been granted a licence to use a software package comprising computer programs. 

 

	(B)	Certain technical information and documentation relating to the software package is the confidential property of the Owner and in the circumstances provided for in this
Agreement would be required by the Licensee for understanding, maintaining, modifying and correcting the software package in order to give continued effect to the Licensee’s rights under the Licence Agreement. 

 

	(C)	The Owner acknowledges that upon the occurrence of any of the Release Events of this Agreement, the Licensee may require possession of and a right to use the technical
information and documentation to be deposited with and held by NCC Escrow under this Agreement. 

  

	(D)	Each of the Parties acknowledges that the consideration for their respective undertakings under this Agreement are the undertakings and obligations agreed to by each of
the Parties hereunder. 

 It is agreed that: 
  

	1.	Definitions 

 In this
Agreement the following terms shall have the following meanings: 
  

	 	1.1	“Agreement” means the terms and conditions of this escrow agreement set out below, the Schedules and Appendix A hereto and the Order Form.

  

	 	1.2	“Confidential Information” means all tangible and intangible information designated as confidential by any party in writing together with all other
information which may reasonably be regarded as confidential. 

  

	 	1.3	“Full Verification” means the tests and processes constituting NCC Escrow’s Full Verification service and/or such other tests and processes as may
be agreed between the parties for the verification of the Material. 

  

	 	1.4	“Independent Expert” means a suitably qualified solicitor or barrister. 

 

	 	1.5	“Integrity Testing” means those tests and processes forming NCC Escrow’s Integrity Testing service, in so far as they are applicable to the
Material. 

  

	 	1.6	“Intellectual Property Rights” mean any copyright, patent, design patent, registered designs, design rights, utility models, trademarks, service marks,
an application for any of these or the right to apply for the same, trade secrets, 

  

 26/06/2006  Page 28 of 47 

	 	 
know how, database rights, moral rights, confidential information, trade or business names, domain names, and any other rights of a similar nature including industrial and proprietary rights and
other similar protected rights in any country and any licences under or in respect of such rights. 

  

	 	1.7	“Licence Agreement” means the agreement between the Owner and the Licensee under which the Licensee was granted rights to the Package.

  

	 	1.8	“Material” means the Source Code of the Package and such other materials and documentation (including updates and upgrades thereto and new versions
thereof) as are necessary to comply with clause 2 hereof. 

  

	 	1.9	“Order Form” means the order placed with NCC Escrow for the set up of this Agreement. 

 

	 	1.10	“Package” means the software package and any updates, upgrades or new versions thereof licensed to the Licensee under the Licence Agreement and
referred to in Schedule 1. 

  

	 	1.11	“Source Code” means the computer programming code of the Package in human readable form. 

 

	2.	Owner’s Duties and Warranties 

  

	 	2.1	The Owner shall: 

  

	 	2.1.1	deliver a copy of the Material to NCC Escrow within 30 days of the date of final acceptance under clause 2.12 of the Licence Agreement and updates and upgrades within
30 days of such updates and upgrades being made available to Licensee under clause 6 of the Licence Agreement; 

  

	 	2.1.2	deliver to NCC Escrow a replacement copy of the Material within 12 months of the last delivery to ensure the integrity of the Material media; 

 

	 	2.1.3	deliver a replacement copy of the Material to NCC Escrow within 14 days of receipt of a notice served upon it by NCC Escrow under the provisions of clause 4.1.5;

  

	 	2.1.4	deliver with each deposit of the Material the following information: 

  

	 	(a)	details of the deposit including full name (original name as set out under Schedule 1 together with any new names given to the Package by the Owner) and version
details, media type, backup command/software used, compression used, archive hardware and operating system details; and 

  

	 	(b)	password/encryption details required to access the Material; 

  

	 	2.1.5	deliver with each deposit of the Material any of the following technical information (where applicable): 

 

	 	(a)	documentation describing the procedures for building, compiling and installing the software, including names and versions of the development tools;

  

	 	(b)	software design information (e.g. module names and functionality); and 

  

	 	(c)	name and contact details of employees with knowledge of how to maintain and support the Material; and 

 

	 	2.1.6	deposit (at the request of the Licensee) a backup copy of the object code of any third party software package required to access, install, build or compile or otherwise
use the Material. 

  

 26/06/2006  Page 29 of 47 

	 	2.2	The Owner warrants: 

  

	 	2.2.1	that the Material shall be the original works of the Owner or its licensors (other than any third party object code referred to in clause 2.1.6 of this Agreement)

  

	 	2.2.2	that in entering into this Agreement, it is not in breach of any of its ongoing express or implied obligations to any third party(s); 

 

	 	2.2.3	that the Material lodged under clause 2.1 shall contain all information in human-readable form (except for any third party object codes) and on suitable media to enable
a reasonably skilled programmer or analyst to understand, maintain, modify and correct the Package; and 

  

	 	2.2.4	that in respect of any third party object code that the Owner at its option or at the request of the Licensee, deposits with NCC Escrow under this Agreement in
conjunction with the Material, that it has full right and authority to do so. 

  

	3.	Licensee’s Responsibilities and Undertakings 

  

	 	3.1	It shall be the responsibility of the Licensee to notify NCC Escrow of any change to the Package that necessitates a replacement deposit of the Material.

  

	 	3.2	In the event that the Material is released under clause 6, the Licensee shall keep the Material confidential and shall: 

 

	 	3.2.1	use the Material only for the purposes specified in clause 3 of the Licence Agreement; 

 

	 	3.2.2	not disclose the Material to any person save such of its employees or contractors who need to know the same in order to provide the support and maintenance services
that the Owner is obliged to provide under clause 5 and Schedule 4 of the Licence Agreement exclusively on behalf of the Licensee In that event the Licensee shall ensure that its employees and contractors are bound by the same confidentiality
obligations as are contained in this clause 3.2 and clause 16 of the Licence Agreement; 

  

	 	3.2.3	hold all media containing the Material in a safe and secure environment when not in use; and 

 

	 	3.2.4	forthwith destroy the same should the Licensee cease to be entitled to use the Package. 

 

	 	3.3	In the event that the Material is released under clause 6, it shall be the responsibility of the Licensee to obtain the necessary licences to utilise the object code of
any third party material deposited by the Owner pursuant to clause 2.1.6. 

  

	4.	NCC Escrow’s Duties 

  

	 	4.1	NCC Escrow shall: 

  

	 	4.1.1	hold the Material in a safe and secure environment; 

  

	 	4.1.2	upon receipt of any deposit of the Material, apply the Integrity Testing to the Material in accordance with clause 9; 

 

	 	4.1.3	inform the Owner and the Licensee of the receipt of any deposit of the Material by way of a copy of the Integrity Testing report or Full Verification report (as the
case may be) generated from the testing carried out under clause 9; 

  

 26/06/2006  Page 30 of 47 

	 	4.1.4	at all times retain a copy of the latest verified deposit of the Material; and 

 

	 	4.1.5	notify the Owner and the Licensee if it becomes aware at any time during the term of this Agreement that the copy of the Material held by it has been lost, damaged or
destroyed 

  

	 	4.2	NCC Escrow shall not be responsible for procuring the delivery of the Material in the event of failure by the Owner to do so, but NCC Escrow may at its sole discretion
notify the Licensee of the Owner’s failure to deposit any Material under this Agreement. 

  

	 	4.3	NCC Escrow may appoint agents, contractors or sub-contractors as it deems fit to carry out the Integrity Testing and the Full Verification and NCC Escrow shall ensure
that such agents, contractors or sub-contractors are bound by the same confidentiality obligations as are contained in clause 7. 

  

	 	4.4	NCC Escrow shall have the right to make such copies of the Material as may be necessary solely for the purposes of this Agreement and all such copies shall be destroyed
following termination of this Agreement or returned to the Owner at its request. 

  

	5.	Payment 

  

	 	5.1	The parties shall pay NCC Escrow’s standard fees and charges as published from time to time or as otherwise agreed, in the proportions set out in Schedule 2. NCC
Escrow’s fees as published are exclusive of value added tax. 

  

	 	5.2	NCC Escrow shall be entitled to review and vary its standard fees and charges for its services applicable under this Agreement from time to time but no more than once a
year upon 45 days written notice to the parties. 

  

	 	5.3	All invoices are payable within 30 days from the date of invoice. NCC Escrow reserves the right to charge interest in respect of the late payment of any sum due under
this Agreement (as well after as before judgement) at the rate of 2% per annum over the prevailing base rate of the HSBC Bank Plc accruing on a daily basis from the due date therefore until full payment. 

 

	6.	Release Events 

  

	 	6.1	Subject to the provisions of clauses 6.2 and 6.3 of this Agreement and clause 4.3 of the Licence Agreement and upon receipt of its release fee and any
other fees outstanding under this Agreement, NCC Escrow will release the Material to a duly authorised officer of the Licensee if any of the following events (“Release Event(s)”) occur: 

 

	 	6.1.1	the Owner enters into any company voluntary arrangement or individual voluntary arrangement or (being a company) enters into liquidation whether compulsory or voluntary
(other than for the purposes of solvent reconstruction or amalgamation) or has a receiver or administrative receiver appointed over all or any part of its assets or undertaking or an Administration Order is made or (being an individual or
partnership) becomes or is adjudicated bankrupt, or an event occurs within the jurisdiction of the country in which the Owner is situated which has a similar effect to any of the above events in the United Kingdom; or 

 

 26/06/2006  Page 31 of 47 

	 	6.1.2	the Owner ceases doing business in the ordinary course; or 

  

	 	6.1.3	the Owner informs Licensee pursuant to clause 4.7 of the Licence Agreement that the Owner intends to discontinue offering support and maintenance services for the
Package. 

  

	 	6.2	The Licensee must notify NCC Escrow of the Release Event(s) specified in clause 6.1 by delivering within one month of the date of actual knowledge of the Release Event
to NCC Escrow a statutory or notarised declaration (“the Declaration”) made by an officer of the Licensee declaring that such Release Event has occurred, setting out the facts and circumstances of the Release Event and that the Licence
Agreement and any maintenance agreement, if relevant, for the Package was still valid and effective up to the occurrence of such event and exhibiting such documentary evidence in support of the Declaration as NCC Escrow shall reasonably require.

  

	 	6.3	Upon receipt of a Declaration from the Licensee claiming a Release Event under clause 6.1: 

 

	 	6.3.1	NCC Escrow shall submit a copy of the Declaration to the Owner by courier or equivalent type of post; and 

 

	 	6.3.2	unless within 30 days after the date of receipt the Owner delivers to NCC Escrow a counter-notice signed by a duly authorised officer of the Owner stating that no such
Release Event has occurred, or that the breach giving rise to the Release Event has been rectified as shown by documentation in support thereof 

  

	 	6.3.3	NCC Escrow will release the Material to the Licensee. 

  

	 	6.4	Upon receipt of the counter-notice from the Owner under clause 6.3.2, NCC Escrow shall send a copy of the counter-notice and any supporting evidence to the Licensee.

  

	 	6.5	In the event of any dispute as to the occurrence of any of the Release Events or disputes under clause 12.5, NCC Escrow shall notify the Owner and the Licensee of the
dispute and such dispute will then be referred by NCC Escrow to the Managing Director for the time being of NCC Escrow to appoint an Independent Expert or if either the Owner or the Licensee so requests apply to The Law Society or The Bar Council
(or successor bodies) for the appointment of an Independent Expert on behalf of the Owner and the Licensee. 

  

	 	6.6	Within 5 working days of the appointment of the Independent Expert, the Owner and the Licensee shall each provide full written submissions to the Independent Expert
together with all relevant documentary evidence in their possession in support of their claim, whereupon the Independent Expert shall give a decision on the matter within 14 working days of the date of referral or as soon as practicable thereafter
and shall send that decision to the parties and NCC Escrow. The Independent Expert’s decision shall be final and binding on all parties to this Agreement and shall not be subject to appeal to a court in legal proceedings except in the case of
manifest error. 

  

	 	6.7	If the Independent Expert’s decision is in favour of the Licensee, NCC Escrow is hereby authorised to release and deliver the Material to the Licensee within 7
working days of the decision being declared by the Independent Expert to 

 the parties.

  

 26/06/2006  Page 32 of 47 

	 	6.8	The parties hereby agree that the reasonable costs and expenses of the Independent Expert shall be borne by the Owner (or its agent or any party acting on its behalf)
where the Independent Expert decides that the relevant Release Event(s) has occurred, or the Licensee where the Independent Expert decides that the relevant Release Event(s) has not occurred. 

 

	 	6.9	Subject to clause 6.2 above for the avoidance of doubt, where clause 6.1.1 or 6.1.2 Release Events have been triggered, a subsequent remedy by the Owner will not
invalidate the Licensee’s right to apply to NCC Escrow for release of the Material unless the Licensee waives its right in writing within one month from the date of knowledge of a Release Event. 

 

	7.	Confidentiality 

  

	 	7.1	The Material shall remain the confidential property of the Owner and in the event that NCC Escrow provides the Material to the Licensee, the Licensee shall be permitted
to use the Material only in accordance with clause 3.2. 

  

	 	7.2	NCC Escrow agrees to keep all Confidential Information relating to the Material and/or the Package that comes into its possession or to its knowledge under this
Agreement in strictest confidence and secrecy. NCC Escrow further agrees not to make use of such information and/or documentation other than for the purposes of this Agreement and will not disclose or release it other than in accordance with the
terms of this Agreement, unless the parties should expressly agree otherwise in writing signed by the authorised signatories of all parties to this Agreement. 

 

	8.	Intellectual Property Rights 

  

	 	8.1	The release of the Material to the Licensee will not act as an assignment of any Intellectual Property Rights that the Owner or any third party possesses in the
Material. 

  

	 	8.2	The Intellectual Property Rights in the Integrity Testing report and any Full Verification report shall remain vested In NCC Escrow. The Owner and the Licensee shall
each be granted a non-exclusive non-transferable right and licence to use such report for the purposes of this Agreement and their own internal purposes only. 

 

	9.	Integrity Testing and Full Verification 

  

	 	9.1	NCC Escrow shall bear no obligation or responsibility to any party to this Agreement or person, firm, company or entity whatsoever to determine the existence,
relevance, completeness, accuracy, operation, effectiveness, functionality or any other aspect of the Material received by NCC Escrow under this Agreement. 

 

	 	9.2	Upon the Material being lodged with NCC Escrow, NCC Escrow shall apply its Integrity Testing to the Material. 

 

	 	9.3	Any party to this Agreement shall be entitled to require NCC Escrow to carry out a Full Verification. NCC Escrow’s prevailing fees and charges for the provision of
the Full Verification and all reasonable expenses incurred by NCC Escrow in carrying out the Full Verification, shall be payable by the requesting party, save that if in the reasonable opinion of the Managing Director of NCC Escrow based on the
relevant test report(s), the Material is substantially defective or incomplete in content, NCC Escrow’s fees charges and expenses in relation to the Full Verification shall be paid by the Owner. 

 

 26/06/2006  Page 33 of 47 

	 	9.4	Should the Material deposited fail to satisfy NCC Escrow’s Integrity Testing or Full Verification tests under clauses 9.2 or 9.3, the Owner shall within 14 days of
the receipt of the notice of test failure from NCC Escrow, deposit such new, corrected or revised Material as shall be necessary to ensure its compliance with its warranties and obligations in clause 2. If the Owner fails to make such deposit of the
new, corrected or revised Material, NCC Escrow will issue a report to the Licensee detailing the problem with the Material as revealed by the relevant tests. 

 

	10.	NCC Escrow’s Liability 

  

	 	10.1	Nothing in this clause 10 excludes or limits the liability of NCC Escrow for fraudulent misrepresentation or for death or personal injury caused by NCC Escrow’s
negligence. Save as aforesaid the following provisions set out the entire financial liability of NCC Escrow (Including any liability for the acts or omissions of its employees, agents and sub-contractors) to the other parties:

  

	 	10.1.1	NCC Escrow shall not be liable for any loss or damage caused to either the Owner or the Licensee either jointly or severally except to the extent that such loss or
damage is caused by the negligent acts or omissions of or a breach of any contractual duty by NCC Escrow, its employees, agents or sub-contractors and in such event NCC Escrow’s total liability in respect of all claims arising under or by
virtue of this Agreement or in connection with the performance or contemplated performance of this Agreement, shall not exceed the sum of £500,000. 

  

	 	10.1.2	NCC Escrow shall not be liable to the Owner and/or the Licensee for any indirect or consequential loss or damage whether for loss of profit, loss of business, depletion
of goodwill or otherwise whatsoever or howsoever caused which arise out of or in connection with this Agreement even if such loss was reasonably foreseeable or NCC Escrow had been advised of the possibility of incurring the same by the Owner, the
Licensee or any third party. 

  

	 	10.2	NCC Escrow shall be protected in acting upon any written request, waiver, consent, receipt, statutory declaration or any other document furnished to it pursuant to and
in accordance with this Agreement, not only in assuming the authority of the person furnishing such document, its authenticity, due execution and validity and effectiveness of its provisions but also as to the truth of any information contained in
it which NCC Escrow in good faith believes to be genuine and what it purports to be. 

  

	11.	Indemnity 

  

	 	11.1	Save for any claim falling within the provisions of clause 10.1: 

  

	 	11.2	The Owner and the Licensee jointly and severally agree to reimburse NCC Escrow on an indemnity basis all of its legal and all related costs incurred directly or
indirectly as a result of being brought into or otherwise becoming involved in any form of dispute resolution proceedings or any litigation of any kind between the Owner and the Licensee in relation to this Agreement to the extent that this
Agreement does not otherwise provide for reimbursement of such costs. 

  

 26/06/2006  Page 34 of 47 

	12.	Termination 

  

	 	12.1	NCC Escrow may terminate this Agreement by notice in writing to the Owner and the Licensee after failure by the Owner or the Licensee to comply with a 30 day written
notice from NCC Escrow to pay any outstanding fee. If the failure to pay is on the part of the Owner, the Licensee shall be given the option of paying such fee itself which option shall expire 14 days after it is notified to the Licensee. Such
amount will be recoverable by the Licensee direct from the Owner. 

  

	 	12.2	NCC Escrow may terminate this Agreement by giving 30 days written notice to the Owner and the Licensee. In that event the Owner and the Licensee shall appoint a
mutually acceptable new custodian on similar terms and conditions to those contained herein. If a new custodian is not appointed within 15 days of delivery of such notice, the Owner or the Licensee shall be entitled to request the President for the
time being of the British Computer Society (or such other body replacing the same) to appoint a suitable new custodian upon such terms and conditions as he/she shall require. Such appointment shall be final and binding on all parties. If NCC Escrow
is notified of the new custodian within the notice period, NCC Escrow will forthwith deliver the Material to the new custodian. If NCC Escrow is not notified of the new custodian within the notice period, NCC Escrow will destroy the Material.

  

	 	12.3	The Licensee may terminate this Agreement at any time by giving written notice to NCC Escrow. 

 

	 	12.4	If the Licence Agreement has expired or has been lawfully terminated or if the licensee terminates the support and maintenance services provided by the Owner under the
Licence Agreement, then either the Licensee or the Owner shall give notice to NCC Escrow within 14 days thereof to terminate this Agreement and this Agreement shall terminate with effect from that expiry or termination of the Licence Agreement or
the support and maintenance services (as the case may be). Upon receipt of such notice from the Owner, NCC Escrow shall notify the Licensee of the Owner’s notice to terminate and unless within 14 days of the date of such notice from NCC Escrow
the Licensee delivers to NCC Escrow a counter-notice signed by a duly authorised officer of the Licensee disputing the termination of the Licence Agreement, then the Licensee shall be deemed to have consented to such termination. Any disputes
arising under this clause shall be dealt with in accordance with clauses 6.5 to 6.8. 

  

	 	12.5	Without prejudice to any other provisions herein, NCC Escrow shall have the right to terminate this Agreement upon 30 days notice to the Licensee and the Owner in the
event that a Release Event has occurred but the Licensee has failed to apply for release of the Material under clause 6. The Licensee shall have the option of applying for release under clause 6 during this notice period, but if it fails to do so,
upon the expiry of this notice period NCC Escrow shall return the Material to the Owner or destroy the Material if NCC Escrow is unable to trace the Owner. 

 

	 	12.6	Subject to clause 12.5, the Owner may only terminate this Agreement with the written consent of the Licensee. 

 

	 	12.7	This Agreement shall terminate upon release of the Material to the Licensee in accordance with clause 6. 

 

 26/06/2006  Page 35 of 47 

	 	12.8	Upon termination under the provisions of clauses 12.1, 12.3, 12.5, 12.7 or 12.10, for 30 days from the date of termination NCC Escrow will make the Material available
for collection by the Owner from the premises of NCC Escrow during office hours. After such 30 day period NCC Escrow will destroy the Material. 

  

	 	12.9	NCC Escrow may upon 30 days written notice to all parties terminate this Agreement if it is unable to verify the legal status of any of the other parties to this
Agreement despite having used reasonable endeavours to do so. 

  

	 	12.10	For the avoidance of doubt, this Agreement may be terminated forthwith by mutual agreement of all parties hereto and upon such termination, unless otherwise agreed, NCC
Escrow will return the Material to the Owner. 

  

	 	12.11	The provisions of clauses 3.2, 7, 8, 9.1, 10, 12.12, 12.13, 12.14 and 13 shall continue in full force after termination of this Agreement. 

 

	 	12.12	On termination of this Agreement the Owner and/or the Licensee (as appropriate) shall remain liable to NCC Escrow for payment in full of any fee which has become due
but which has not been paid as at the date of termination. 

  

	 	12.13	The termination of this Agreement, however arising, shall be without prejudice to the rights accrued to the parties prior to termination. 

 

	13.	General 

  

	 	13.1	The parties shall notify the other parties within 30 days of any change of names or any other material changes that may reasonably be expected to affect the validity or
operation of this Agreement. 

  

	 	13.2	The formation, existence, construction, performance, validity and all aspects of this Agreement shall be governed by and construed in accordance with the laws of
England and subject to clauses 6.5 to 6.8 and clause 12.5 the parties submit to the exclusive jurisdiction of the English courts. 

  

	 	13.3	This Agreement, the Schedules and the Appendix hereto, the Order Form and the Licence Agreement represent the whole agreement relating to the escrow arrangements
between the parties for the Package and shall supersede all prior agreements, discussions, arrangements, representations, negotiations and undertakings with respect to such subject matter. In the event of any conflict between any of these documents,
the terms of this Agreement shall prevail. Notwithstanding the foregoing, in the event of any conflict between these documents and the matters covered in clause 4 of the Licence Agreement, clause 4 of the Licence Agreement shall prevail.

  

	 	13.4	Any notice or other communication required or permitted to be given or made hereunder shall be in writing and deemed validly given or made if delivered by hand or
courier or if despatched by pre-paid, registered letter post addressed to the address specified on page 1 of this Agreement (or such other address as may be notified to the parties from time to time) or if sent by facsimile message to such facsimile
number as has been notified to the parties from time to time and shall be deemed to be given or made: 

  

	 	(i)	if delivered by hand or courier, at the time of delivery; 

  

	 	(ii)	if sent by registered first class post, 2 business days after the same shall have been posted; 

 

	 	(iii)	if sent by facsimile, at the time of transmission of the facsimile transmission with facsimile machine confirmation of transmission to the correct facsimile number of
all pages of the notice. 

  

 26/06/2006  Page 36 of 47 

	 	13.5	The Owner and the Licensee shall not assign, transfer or subcontract this Agreement or any rights or obligations thereunder without the prior written consent of the
other Parties, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that the Owner may assign or transfer this Agreement in connection with a merger, acquisition or sale of all or substantially of its assets
to which this Agreement relates. 

  

	 	13.6	NCC Escrow shall be entitled to transfer or assign this Agreement upon notice to both the Owner and the Licensee. 

 

	 	13.7	Within 14 days of any assignment or transfer by the Owner of any part of its Intellectual Property Rights in the Material, the Owner shall notify NCC Escrow of such
assignment. 

  

	 	13.8	This Agreement shall be binding upon the successors and permitted assigns of the parties provided always that nothing shall permit any assignment by either the Owner or
the Licensee except as expressly provided herein. 

  

	 	13.9	If any provision of this Agreement is declared illegal, invalid or unenforceable, the parties agree that such provision shall be enforced to the maximum extent
permitted by law and that such provision shall be deemed to be construed accordingly. If any provision of this Agreement is found by any court, tribunal or administrative body of competent jurisdiction to be wholly or partly illegal, invalid, void,
voidable or unenforceable it shall, to the extent of such illegality, invalidity, voidability or unenforceability be deemed severable to that extent and the remaining part of the provision and the rest of the provisions of this Agreement shall
continue in full force and effect. 

  

	 	13.10	Save as expressly provided in this Agreement, no amendment or variation of this Agreement shall be effective unless in writing and signed by a duly authorised
representative of each of the parties to it. 

  

	 	13.11	The parties shall not be liable to each other or be deemed to be in breach of this Agreement by reason of any delay in performing, or failure to perform, any of their
obligations under this Agreement if the delay or failure results from causes beyond that party’s reasonable control (including, without limitation, fire, flood, explosion, epidemic, riot, civil commotion, any strike, lockout or other industrial
action, act of God, war or warlike hostilities or threat of war, terrorist activities, accidental or malicious damage, or any prohibition or restriction by any governments or other legal authority which affects this Agreement and which is not in
force on the date of this Agreement). A party claiming to be unable to perform its obligations under this Agreement (either on time or at all) in any of the circumstances set out above must notify the other parties in writing of the nature and
extent of the circumstances in question as soon as practicable. If such circumstances continue for more than six months, any of the other parties shall be entitled to terminate this Agreement by giving one month’s notice.

  

 26/06/2006  Page 37 of 47 

	 	13.12	This Agreement is not intended to create any right under the Contracts (Rights of Third Parties) Act 1999 which is enforceable by any person who is not a party to this
Agreement and the rights of any third party under the said Act are hereby expressly excluded. 

  

	 	13.13	Except for the express warranties set forth in this Agreement, the Owner and the Licensee each make no additional warranties to each other under this Agreement and
hereby disclaim and exclude from application to this Agreement all other warranties, whether statutory, express or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose and
non-infringement of third party rights. 

  

	 	13.14	The Owner and the Licensee agree that the liability of each to, the other arising out of the Licensee’s use of the Material shall be limited as set forth in the
Licence Agreement. 

  

			
	Signed for and on behalf of Cabot Communications Limited
		
	Name:	 	  

	Position:	 	  

		 	(Authorised Signatory)
	
	Signed for and on behalf of Philips Electronics UK
		
	Name:	 	  

	Position:	 	  

		 	(Authorised Signatory)
	
	Signed for and on behalf of NCC ESCROW INTERNATIONAL LIMITED
		
	Name:	 	  

	Position:	 	  

		 	(Authorised Signatory)

  

 26/06/2006  Page 38 of 47 

 Schedule 5: Support and Maintenance Services 

 

	1.1	Service Provision 

 Support and
Maintenance Services will be provided from the Cabot facility in Bristol, UK (the Support Site). 
 Cabot will provide Support and Maintenance
Services between the hours of 9am and 5pm UK time, Monday to Friday excluding UK public holidays. 
 If the Licensee requests that Support and
Maintenance Services be provided at a location other than the Support Site then Cabot may do so at its sole discretion provided that the Licensee agrees to reimburse Cabot for all reasonable travel and subsistence expenses incurred in providing the
Services and proof of these costs is provided. 
 Support and Maintenance Services will be provided for a period of 12 months (the
“Service Period”) following payment of the Support and Maintenance Fee. 
 Support and Maintenance Services will only be
provided by Cabot in response to direct requests from the Licensee and not from any third party. 
  

	1.2	Platform 

 Cabot will provide Support and
Maintenance Services for the Adapted Software using the [Development Platform] described in the Statement of Work. 
 All Problem Reports
generated by the Licensee must be demonstrated using the Development Platform. All [Patches] and [Updates] provided by Cabot will be delivered on this platform, and any development work undertaken by Cabot will be carried out using this platform.

 In order for Cabot to provide the Support and Maintenance Services, the Licensee will provide two complete Development Platforms without cost
at the [Support Site], and will ensure that during the Service Period, the equipment is repaired, maintained, operational and accessible. 
  

 26/06/2006  Page 39 of 47 

	1.3	Service Definition 

 Cabot will provide
the following Support and Maintenance Services to the Licensee under this Agreement. 
  

	 	1.3.1	Development Support 

 Cabot will provide support
for any of the Licensees own development activities that use the Adapted Software. During each Service Period, Cabot will provide up to 20 man days of Development Support to the Licensee. 

This Development Support will consist of technical assistance in respect of the Adapted Software and may take the form of answers to questions, guidance
on the use of the Adapted Software, assistance with integration issues, and small amounts of development work. 
 If Cabot believe that a
Development Support request from the Licensee will require significant development effort which is beyond the scope of the Development Support included within the Support and Maintenance Services, then Cabot will offer the Licensee alternative
funded support services to meet the request. 
  

	 	1.3.2	Bug Fixes 

 Bug fixes for the Adapted Software
can be requested from Cabot by the Licensee. 
 To request a bug fix the Licensee must generate a Problem Report which details an alleged
malfunction of the Adapted Software. 
 Cabot will investigate each Problem Report received from the Licensee in order to determine whether the
malfunction is the result of a failure of the Adapted Software to materially conform with its specification (an Error). Cabot will be solely responsible for determining whether a Problem Report is the result of an Error in the Adapted Software.

 Cabot will only investigate Problem Reports for which it is possible to reproduce the alleged malfunction using the Development Platform at
the Support Site. 
 Where a Problem Report is the result of an Error, Cabot will provide the Licensee with a plan to correct the Error within 2
Working Days. Cabot will bear the cost of investigating the Problem Report and fixing the Error, and will provide the Licensee with a fix for the Error in the form of a Patch (a fix for a limited number of files) or an Update (a fix for a complete
software component). 
 Where a Problem Report is not the result of an Error, Cabot will provide the Licensee with and explanation, and will
detail the action Cabot could take to resolve the problem. If the Licensee wishes Cabot to undertake work to resolve the problem then this request will be treated as Development Support. 

During each Service Period Cabot will provide up to 20 man days of Problem Report investigation effort for Problem Reports that are not the result of an
Error. 
  

 26/06/2006  Page 40 of 47 

	 	1.3.3	Updates 

 For time to time Cabot may make Updates
to its standard Software. An Update will consist of a complete release of a software component intended to fix a number of Errors which may have previously been fixed using separate Patches. 

During the Service Period if Cabot makes an Update to its standard Software then Cabot will release to the Licensee an Updated version of the Adapted
Software. 
 This Update will become the current version of the Adapted Software from the date of its release and will be the version that Cabot
continue to support under this Agreement. The current version of the Adapted Software immediately preceding the Update will be supported by Cabot for 6 months following the date of the Update. 

 

	 	1.3.4	Notification of Upgrades 

 During the Service
Period Cabot will notify the Licensee of any Upgrades to its standard Software that form part of the Adapted Software. The Licensee may acquire these Upgrades subject to a separate Agreement. 

 

	1.4	Release Testing 

 Any Patches, Updates, Upgrades
or other software developed as part of the Support and Maintenance Services will be tested to Cabot’s normal standards of software testing and will not undergo formal [Validation Testing]. 

If the Licensee requests that Cabot carry out Validation Testing of any released software then Cabot may do so at its sole discretion provided that the
Licensee agrees to pay for this additional service at the rate set out in section 1.7. 
  

 26/06/2006  Page 41 of 47 

	l.5	Roles & Responsibilities 

 Cabot
and the Licensee will both appoint a Project Manager. 
 The Cabot Project Manager will be responsible for: 

 

	 	•	 	 Serving as the main point of contact for the Licensee on all matters relating to Support and Maintenance Services. 

 

	 	•	 	 Assessing whether requests by the Licensee for Development Support fall within the terms of this Agreement. 

 

	 	•	 	 Providing the Licensee with Updates and notifying the Licensee of Upgrades to Cabot’s standard Software. 

 

	 	•	 	 Providing the Licensee with Status Reports. 

The Licensee Project Manager will be responsible for: 
  

	 	•	 	 Serving as the main point of contact for Cabot on all matters relating to Support and Maintenance Services. 

 

	 	•	 	 Generating requests for Development Support and issuing Problem Reports. 

Cabot and the Licensee will both appoint a Technical Lead. 

The Cabot Technical Lead will be responsible for: 
  

	 	•	 	 Serving as the main point of contact for the Licensee on all technical matters relating to Support and Maintenance Services.

  

	 	•	 	 Investigating Problem Reports generated by the Licensee. 

The Licensee Technical Lead will be responsible for: 
  

	 	•	 	 Serving as the main point of contact for Cabot on all technical matters relating to Support and Maintenance Services. 

 

 26/06/2006  Page 42 of 47 

	1.6	Communications 

 Email and telephone
communications will be the principal means of communications between Cabot and the Licensee during the provision of Support and Maintenance Services. 

The Cabot Project Manager should be copied on all email communication taking place between Cabot and the Licensee. 

Cabot will only consider requests for Development Support and Problem Reports received from the Licensee Project Manager. 

Cabot will provide the Licensee with a Status Report every two weeks by email. This Status Report will detail the current state of all Development
Support requests and Problem Reports, and will notify the Licensee of any Update or Upgrade. The Status Report will also give the number of included man days of support that remain unused and available to the Licensee. 

 

	1.7	Payment 

 The Support and Maintenance Fee
payable by the Licensee to Cabot in respect of the Support and Maintenance Services for each Service Period are defined in Schedule 3 

Additional work which is not included within the Support and Maintenance Services may be carried out by Cabot at its sole discretion provided that the
Licensee agrees to pay for this work at the rate in Schedule 3. 
 Cabot will provide the Licensee with an estimate of the work required before
providing the requested service. 
  

 26/06/2006  Page 43 of 47 

 Schedule 6: The Licensee’s contact details for notices under this Agreement

  

	
	 Licensee: Philips France Semiconductors

	 2 rue de la Girafe, B P. 5120, 14079 Caen Cedex 5, France

	 133 (0)231456230

	 For the attention of: ***

 

 26/06/2006  Page 44 of 47 

 Schedule 7: The Statement of Work 

See Cabot document number C20331. 
  

 26/06/2006  Page 45 of 47 

 IN WITNESS of which this Agreement has been signed by the parties or their duly authorised representatives
on the date written at the beginning of this Agreement. 
  

			
	Cabot Communications Ltd	  	The Licensee
		
	  
	  	  

	Authorised Signature	  	Authorised Signature
		
	  
	  	  

	Print Authorised Signatory’s Name and Title	  	Print Authorised Signatory’s Name and Title

  

 26/06/2006  Page 46 of 47 

							
				
	

	  	 Bitstream b.v.

Prinsengracht 659-661
 1016 HV
Amsterdam
 The Netherlands
	  	Phone:
 Fax:

e-mail:
  
	  	 +31-20-5200-300

+31-20-5200-399
 ***

 

  

			
	To:	  	***
	c.c.:	  	***
	c.c.:	  	***
	Company:	  	Philips Sound & Vision
	Fax:	  	+31 40 2733416
	From:	  	***
	Date:	  	September 26, 1997
	No of Pages:	  	2 including cover

 Dear Mr. *** 

*** 
 Access Fees 

 

				
	 ***
	  	 	***
	 Maintenance fee (not charges for the first year)
	  	 	***
	 Access fee 1-10 Latin/non Latin outlines
	  	 	***
	 Access fee per latin
	  	$	***
	 Access fee per non Latin
	  	$	***
	 Access fee one Kanji, Chinese and Korean Style
	  	$	***
		
	 ***
	  		
	 Latin or non Latin style
	  	$	***
	 First five outline productions no charge
	  		
	 Asian style
	  	$	***
		
	 80 hours on-site engineering support
	  	 	***
	 80 hours Custom department
	  	 	***
		
	 *** Royalty per shipment
	  		
	 Technology only
	  	 	***
	 Latin style
	  	 	***
	 non Latin
	  	 	***
	 Technology + one Asian style
	  	 	***

 After the volume of 1,000,000 the following royalties will be effective. 

 

			
	Technology only	  	***
	+ Latin style	  	***
	+ non Latin	  	***
	Technology + one Asian style	  	***
		
	No ITC royalties included	  	

 Mr. ***, we are extremely pleased that we have reached a level that is acceptable to both parties. I also would
like to express my gratitude towards Ms. *** for helping us in such an efficient way. 
  

	
	Thank you and best regards,
	
	Bitstream b.v.
	
	 ***

	***
	Business Development Manager (OEM)

 Bitstream Inc. 

*** License Agreement 

THIS AGREEMENT IS ENTERED INTO AND MADE EFFECTIVE as of the 6th day of October, 1997 by and between Bitstream Inc. of 215 First Street, Cambridge,
Massachusetts 02142 (Tel: 617/497-6222; Fax: 617/868-0784) (Attention: Legal Department) (“Bitstream”) and Philips Business Electronics B.V., acting also on behalf of Licensee’s Affiliates (as hereinafter defined) of P.O. Box
80002, 5600 JB Eindhoven. The Netherlands (Tel: 31-10-273-8475; Fax: 31-40-273-3416) (“Licensee”). Bitstream hereby licenses to Licensee the products designated in the Exhibits to this Agreement under the terms and conditions
hereof. THIS IS A MASTER AGREEMENT—other products, terms and conditions may be incorporated later through the execution by the parties of additional Exhibits. 

IN CONSIDERATION OF the following matual covenants, undertakings and promises, the parties agree as follows: 

1. Definitions. As used in this Agreement: 

1.1 General Definitions 
 a.
“Bitmap” means a machine readable, digital representation of a single Typeface at a fixed resolution in one weight, width, format and point size; 

b. “Bitstream Proprietary Rights” means all patent, copyright, trade secret, trademark, and all other rights in Licensed Products owned
by or licensed to Bitstream whether or not such rights are registered under patent, copyright or trademark laws; 
 c. “Derivative
Works” are revisions, improvements, alterations, adaptations, translations, abridgment, expansions, or other form of Licensed Product; 

d. “Font Scaling Software” means those Bitstream computer software programs in source or object code form to be used to scale and/or
rasterize outlines; 
 e. “Licensee’s Products” means those Bitstream products designated at Exhibit A (which may include,
but are not limited to, Bitmaps, Outlines and/or Font Scaling Software), all Derivative Works created from them by Bitstream, and Related Materials; 

f. “Licensee’s Affiliates” means any company or legal entity in which Philips Electronics N.V. now or hereafter controls directly or
indirectly more than fifty percent (50%) of the shares entitled to vote for the election of directors or persons having similar functions for so long as such control exists. 

g. “Object Code” means computer programs assembled or compiled in magnetic or other binary form or software media, which are readable and
usable by machines, but not generally by humans without reverse engineering, assembly or compiling; 
 h. “OEMs” (“Original
Equipment Manufacturers”) means third party companies that incorporate Bitstream’s products into their own products; 
 i.
“Outline” means a machine readable digital representation of a single Typeface in one weight width and format that may be scaled to various sizes and represented at various resolutions; 

j. “Related Materials” means information in written or other documentary form supplied to Licensee by Bitstream that relates in whole or
in part, to the installation, design, use, operation, testing, debugging, support, maintenance or marketing of Licensed Products; 
 k.
“Sublicensee” means any entity, including an Original Equipment Manufacturer, that receives via this Agreement the right to use and sublicense the Licensed Products and is in the business of manufacturing, marketing or soliciting
orders for Systems or its own products incorporating Systems; 
 l. “Systems” are any one or more consumer electronic products
or hardware or software subassemblies (provided such software subassemblies are not being used by Licensee for the purpose of marketing of the Licensed Products) of same other than Licensed Products, such as, but not limited to television sets
set-top boxes, monitors and screens that work cooperatively with Licensed Products to produce or represent typefaces which are either manufactured or marketed by or for Licensee or Licensee’s Affiliates, distributors or dealers under the
Licensee’s names or trademarks or manufactured and supplied by Licensee or Licensee’s Affiliates to OEMs; 
 m.
“Typeface” is one style of alphanumeric and other characters in one weight; 
 n. “Updates” are new revisions
of the Licensed Product that improve functionality and that Bitstream designates by decimal “Version” numbers; and 
 o.
“Upgrades” are new releases of the Licensed Product bearing higher Bitstream Version integers and that generally expand the capability of the upgraded product. 

 Page 2 of 6 
  

 1.2 Implementation Specific Definitions 

 

	a.	*** operates upon the data contained in the PFR format to render high quality bitmaps in various point sizes and resolutions for use on displays and imaging devices:
and 

  

	b.	*** is the highly compressed data structure that contains all the information recorded by the CSR. This data can later by accessed by the *** for rasterizing the
characters. 

 2. License Grant 

2.1 Bitstream hereby grants to Licensee and Licensee’s Affiliates a non-exclusive, nontransferable, worldwide right and license, under
Bitstream’s Proprietary Rights and subject to this Agreement, to: 
  

	a.	Use, modify and copy the Licensed Products for internal purposes only; 

  

	b.	Incorporate the Licensed Products in object code only within and as inseperable units within Systems and sell, lease or otherwise dispose of such Systems as
incorporated; and 

  

	c.	Sell Systems incorporating the Licensed Products in object code only within and as inseperable units within Systems to OEM’s for such OEM’s resale, lease or
other disposals of such Systems as incorporated. 

 2.2 Licensee may electronically modify the Licensed Products in order to
incorporate them into its System, but shall not otherwise modify a Licensed Product or prepare a Derivative Work thereof, nor shall Licensee modify an Outline (by obliquing, embolding, italicizing or otherwise modifying a Typeface) for the purpose
of sublicensing a different Typeface, nor permit or authorize its Sublicensees to do so unless otherwise permitted at Exhibit A or B of this Agreement. 

2.3 Licensee may transfer or distribute the Licensed Products in object code form only, and shall not transfer, copy, deliver or sublicense to
any third party any source code of the licensed products or any materials marked “Confidential” and shall strictly protect the source code of Licensed Products as a trade secret. 

2.4 If Licensee shall enter into a sublicense with a Sublicensee for a System containing the Licensed products, such sublicense shall: 

 

	a.	protect Bitstream Proprietary Rights at least as well as this Agreement protects them: 

 

	b.	exist independently so as to survive any termination of Bitstream’s and Licensee’s relationship; and 

 

	c.	be enforced by Licensee to the extent necessary to protect Bitstream’s rights and, in the event of Licensee’s failure to do so be enforceable to the same
extent by Bitstream. 

 3. Payments 

3.1 Licensee most pay all the access fees royalties, sublicense fees, and/or maintenance fees, if any, that are set forth at Exhibit B hereto. 

3.2 All access fees, royalties or sublicense fees shall be due and payable to Bitstream, in full, within forty-five (45) days of delivery of each
Licensed Product to Licensee, unless otherwise specified. Late payments shall accrue interest at a rate of either one and one-half percent *** per month or the highest rate permitted by law, whichever is less, Licensee shall pay Bitstream its
reasonable costs of collecting any overdue payments under this agreement. All payments shall be in U.S. Dollars, by check drawn on a United States bank, or by wire transfer to an account designated by Bitstream, unless otherwise agreed. 

3.3 Any maintenance fees, if applicable, that are payable, subsequent to the initial payments per Section 3.2, shall fall due on each anniversary
date of this Agreement, and shall be billable by Bitstream to Licensee thirty (30) days beforehand. 
 4. Trademarks and Copyright
Notices; Output Quality 
 4.1 Bitstream hereby grants to Licensee a non-transferable, non-exclusive, worldwide right, license and privilege
to use, and sublicense to use, Bitstream’s trade name and trademarks associated with Licensed Products solely in connection with any promotional efforts in marketing Systems. If Bitstream determines the typographic quality resulting from
Licensee’s use of Licensed Products is not consistent with Bitstream’s standard of quality, Licensee will, upon receipt of written notification from Bitstream, discontinue all use of Bitstream’s trade name and trademarks until the
quality has been approved by Bitstream. Licensee shall submit an output sample to Bitstream for approval before sublicensing or transferring Licensed Products. If Bitstream fails to approve or disapprove that sample within thirty (30) days of
receipt, that sample shall be deemed to be approved. Licensee agrees to adhere to reasonable trademark usage and marking requirements promulgated by Bitstream from time to time. 

4.2 Licensee Agrees to reproduce each Bitstream copyright, trademark, patent, proprietary and confidential notice in its entirety on each copy of the
Licensed Products, in the same location as it appears, in electronic or printed form, on the master of the Licensed Products as delivered by Bitstream to Licensee, and to require its sublicensees to do the same. However, Licensee shall not have an
obligation to reproduce 
  

 Bitstream Inc. 

*** OEM/ISV License Agreement 
 Philips
Business Electronics B.V. 

 Page 3 of 6 
  

 any such notice in a place where it is visible for the end-user of the System. e.g. on-screen or on the
outside of the System. 
 5. Ownership: Nondisclosure 

The Licensed Products shall remain the sole and exclusive property of Bitstream, including all applicable rights to patents, copyrights, trademarks and
trade secrets inherent therein and appurtenant thereto. Licensee shall use Licensed Products solely as expressly permitted by this Agreement and shall not reverse engineer translate, decompile or disassemble them. Licensee shall not sell, disclose,
display or otherwise make available to others any source code, including any algorithms of Licensed Products. All Derivative Works created or made by Licensee shall be the sole and exclusive property of Licensee, including all applicable
intellectual property rights inherent therein and appurtenant thereto: provided, however, that in no event shall the ownership of such Derivative Works be deemed to include all or any portion of the Licensed Products other than such Derivative Work.
Any variation from the ownership provisions contained in this Section 5 shall be subject to the mutual agreement of the parties. 
 6.
Confidentiality 
 6.1 “Information.” herein shall mean any and all information, data know-how and documentation relating,
among other things to digital typeface technology and product development, software products, algorithms, business, marketing and distribution plans, the terms and conditions of this Agreement, financial statements and financial projections, which
either party learns or receives from the other, but excluding any information that the receiving party can document is generally known in the computer industry, or that becomes known to the receiving party other than through a breach of confidence,
or that is provided to the receiving party by a third party under no obligation to keep such information confidential. 
 6.2 Each party
acknowledges that all Information disclosed to, or acquired by, the other party in connection with this Agreement constitutes proprietary and confidential trade secrets of the disclosing party. Licensee acknowledges that the Licensed Products are,
and shall remain, trade secrets of Bitstream. Licensee hereby agrees to maintain the Licensed Products and Information in strict confidence, at least as carefully as it protects its own most confidential information. Bitstream agrees to the same
with respect to Information received from Licensee. 
 6.3 Each party agrees to furnish the Information and Licensed Products only to its
employees or to individuals on the party’s premises who are acting under its direction and control for purposes specifically related to Licensee’s permitted use of the Information and Licensed Products and are under a written obligation to
protect disclosing party’s own Confidential Information. Licensee shall advise Bitstream immediately if Licensee learns or has reason to believe that any person having access to the Licensed Products or Information has violated or intends to
violate the terms of this Agreement Bitstream shall advise Licensee of any such likely violation with respect to Licensee’s Information. Each party will cooperate at its own expense with Bitstream in seeking suitable injunctive or other
equitable relief against that person. 
 6.4 Licensee acknowledges that any disclosure of any aspect of the Licensed Product(s) or
Information, except as permitted by Sections 2 and 6 of this Agreement, will give rise to irreparable injury to Bitstream that is inadequately compensable in damages. Licensee hereby consents to Bitstream’s obtaining of injunctive relief
against such disclosure in addition to any other available remedy without the necessity of posting a bond. All Licensee’s undertakings and obligations relating, to confidentiality and non-disclosure, whether contained in this Section or
elsewhere, shall service any termination of this Agreement. 
 7. Licensed Product and Maintenance 

7.1 Customer Support and Maintenance. Bitstream shall provide customer support and maintenance to Licensee in accordance with the Software
Maintenance Agreement between Bitstream and Licensee, a copy of which is attached hereto as Exhibit B-2. 
 8. Termination 

8.1 Unless terminated for material reasons in accordance with Section 8.2 or 8.3 hereof, the parties may terminate this Agreement as follows:

  

	(a)	Licensee may terminate this Agreement by giving Bitstream twelve (12) months prior written notice, provided that Licensee has paid all amounts due to Bitstream
hereunder prior to the date of such termination; and 

  

	(b)	Except as set forth in Sections 8.2 or 8.3 hereof, Bitstream shall not be entitled to terminate this Agreement. 

8.2 If either party fails to comply with a material term or condition of this Agreement, other than a breach of confidentiality hereunder, the complying
party may give the defaulting party written notice of such failure. The defaulting party shall have thirty (30) business days after receipt of notice to cure any such failure, except for a breach of confidentiality under Section 6 hereof,
whereupon, failing such cure, the notifying party shall have the right to terminate this Agreement immediately without further notice. 
  

 Bitstream Inc. 

*** OEM/ISV License Agreement 
 Philips
Business Electronics B.V. 

 Page 4 of 6 
  

 8.3 Bitstream may terminate the license granted in this Agreement immediately by written notice if Licensee
(a) sells all, or substantially all, of its assets, liquidates, or dissolves; (b) materially and/or intentionally breaches any provision regarding confidentiality; or (e) attempts to convey any interest in any Licensed Product, or
other property licensed or supplied hereunder, other than to its Sublicensees or End Users under the terms of this Agreement. 
 8.4 Upon
termination, Licensee shall, at its option, either (a) return to Bitstream or (b) destroy all Licensed Products, Derivative Works made by Bitstream, and all copies thereof, in part or in whole, in all forms of merits. If it chooses the
letter, Licensee shall promptly submit an affidavit signed by an officer of Licensee arresting to the destruction. Licensee may retain sufficient copies to complete deliveries to its Sublicensees. Distributors and End Users on all orders received
prior to the termination of this Agreement. Licensee’s End Users existing at the time of termination shall be entitled to retain such sublicenses. 

8.5 Sections 1, 3, 5, 6, 8, 9 and 11 shall survive termination of this Agreement. 

9. Warranties and Other Representations 

9.1 Bitstream warrants to Licensee only that Licensed Products, at originally delivered and unaltered will be free from programming errors.

 9.2 Licensee’s exclusive remedy for breach of warranty shell be to report such errors in writing to Bitstream within ninety
(90) days after delivery, and return the Licensed Products to Bitstream. Upon receipt of such report, Bitstream shall do one of the following at its sole option: 
  

	(a)	use its best efforts to correct such errors and provide Licensee with corrected Licensed Products; 

 

	(b)	replace the Licensed Products with other materials that are similar in function; or 

 

	(c)	refund the access for, if any, paid by Licensee, approximately apportioned for the non-conforming Licensed Product. 

Bitstream does not warrant the results of any correction of that the functions contained in the Licensed Products will meet Licensee’s requirements.

 10. Infringement 
 If
notified promptly in writing of any action and all prior related claims brought against Licensee alleging that Licensee’s use or sublicensing of the unaltered Licensed Products infringes a patent, copyright or trademark in any country
worldwide. Bitstream will defend that action at its expense, and pay any costs and damages awarded against. Licensee in the action, provided that Bitstream shall enjoy sole control of the defense of any such action and all negotiations for its
settlement or compromise. If a final injunction is obtained in such action against Licensee’s use of any Licensed Product is likely to become the subject of a claim of infringement. Bitstream may, at its option and expense, either: 

 

	(a)	procure for Licensee the right to continue to use the Licensed Product; or 

 

	(b)	replace or modify the Licensed Product so that it becomes non-infringing. 

In the event that only option (a) above is feasible and Licensee is required to pay royalties to a third party to continue to use the Licensed
Product, Licensee may set off any amounts paid by Licensee for the right to continue to use the Licensed Product against the royalties due to Bitstream for the use of such Licensed Product; provided, however, that if Bitstream determines that
obtaining the right to continue to use the Licensed Product will be cost prohibitive, Bitstream shall be order no obligation to continue to license the Licensed Product to Licensee hereunder. Licensee shall defend and hold Bitstream harmless against
all expense, judgments and losses for aligned infringement of any patent, copyright, or other right that results from (i) Licensee’s designs, specifications or instructions, (ii) modifications to any Licensed Product made by or for
Licensee, or (iii) use of any Licensed Product with any Other product than the System. 
 No costs of expenses shall be incurred for the
account of either party under this Section without the prior written consent of the other. 
 This section states the entire liability of both
parties with respect to any infringement of patents, copyrights or order rights. 
 11. Disclaimer and Limitation of Liability

 11.1 EXCEPT AS EXPRESSLY STATED AT THIS
“WARRANTY” SECTION ABOVE, BITSTREAM DISCLAIMS ALL OTHER WARRANTIES, EXPRESS AND
IMPLIED, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. NO REPRESENTATION OR OTHER AFFIRMATION OF
FACT, INCLUDING BUT NOT LIMITED TO, STATEMENTS REGARDING CAPACITY, QUALITY,
SUITABILITY FOR USE OR PERFORMANCE, WHETHER MADE BY BITSTREAM EMPLOYEES OR
OTHERWISE, SHALL BE DEEMED A WARRANTY BY 
  

 Bitstream Inc. 

*** OEM/ISV License Agreement 
 Philips
Business Electronics B.V. 

 Page 5 of 6 
  

 BITSTREAM FOR ANY PURPOSE OR
GIVE RISE TO ANY LIABILITY OF BITSTREAM WHATSOEVER, UNLESS CONTAINED HEREIN.
THE REMEDIES PROVIDED TO LICENSEE IN THIS AGREEMENT ARE EXCLUSIVE. 

11.2 IN NO EVENT SHALL EITHER PARTY BE
LIABLE FOR INCIDENTAL, INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES, OR ANY DAMAGES
WHATSOEVER, RESULTING FROM LOSS OF USE, DATA, OR PROFITS, ARISING OUT
OF, OR IN CONNECTION WITH, THIS AGREEMENT OR THE USE OR PERFORMANCE
OF THE LICENSED PRODUCTS. WHETHER IN AN ACTION OF CONTRACT OR TORT
INCLUDING BUT NOT LIMITED TO NEGLIGENCE. 
 12.
General 
 12.1 Additional Orders. Bitstream may accept purchase orders from Licensee for additional Licensed Products of similar
classification to those at Exhibit A and such additional orders shall be governed by this Agreement, but nothing in Licensee’s purchase order or other communication shall be deemed to modify or add to the provisions or this Agreement or
otherwise have any effect on the Licensed Products. This Agreement shall cover any item or service furnished by Bitstream to Licensee unless specifically covered by another written agreement signed by the respective officers of both Bitstream and
Licensee. 
 12.2 Amendment. This Agreement may be modified, changed or amended only in a writing signed by both parties. Only an
authorized officer of Bitstream at its offices in Cambridge, Massachusetts, shall have any actual or appears authority to modify the terms of this Agreement on behalf of Bitstream. 

12.3 No Waiver. No delay or failure of any party to exercise any right provided herein shall in any way affect its right to enforce that right or
any other right under this Agreement at a later time. No waiver shall be effective unless in writing signed by the waiving party. 
 12.4
Severability. If any provision of this Agreement is declared invalid by any lawful tribunal, then it shall be adjusted to conform to legal requirements of that tribunal and that modification shall automatically become a part of the Agreement.
Or, if no adjustment can be made, the provision shall be deleted as though never included in the Agreement and its remaining provisions shall remain in full force and effect. 

12.5 No Partnership or Agency. Bitstream and Licensee are independent contractors, and neither party shall be, not represent itself to be, the
joint venturer, franchiser, franchisee, partner, broker, employee, servant, agent or representative of the other party for any purpose, Neither party shall be responsible for the acts or omissions of the other, and neither party shall bear authority
to make any representation or incur any obligation on behalf of the other party unless expressly authorized herein. 
 12.6 Assignment.
Neither this Agreement nor individual transaction nor rights under it shall be assigned, nor shall any obligation be designed by Licensee, without the prior written consent of Bitstream, which consent shall not be unreasonably withheld if such
assignment is to one of Licensee’s Affiliates provided such consent shall not (a) cause Bitstream to suffer an economic hardship, or (b) alter Bitstream’s competitive presence in the marketplace. Any attempted assignment or
delegation without Bitstream’s prior written approval shall be void. Notwithstanding the foregoing, Licensee may assign this Agreement to any corporation or other legal entity in which Philips Electronics N.V. has an ownership interest,
directly or indirectly, of more than fifty percent (50%) of the voting stock of such entity or, if no voting stock exists, exercises control by other means, provided that such entity is not a competitor of Bitstream. 

12.7 Force Majeure. Neither party will be liable for any failure or delay in performance due, in whole or in part, to any cause beyond its
reasonable control. 
 12.8 Export Administration Requirements. Licensee shall not export, either directly or indirectly, any Licensed
Product without, first obtaining a license, as required, from the United States Department of Commerce of other U.S. agency or department insofar as such license is necessary to comply with Export Administration Regulations. 

12.9 Notices. Any notice under this Agreement shall be effective upon initial receipt by addressee regardless of whether notice is rejected if
notice it in writing, signed by an authorized representative of the noticing party, and sent by registered or certified mail, return receipt requested, postage prepaid to Bitstream, at the address stated at the beginning of this Agreement
(Attention: Legal Department), and to Licensee as follows: 
 Licensee: Philips Business Electronics B.V. 

Attention: *** 
 Street: P.O. Box 80002 5600 JB
Eindhoven 
 City/State/Postal Code: 5600 JB Eindhoven 

Country: The Netherlands 
 Phone Number:
31-40-273-8475 
 Fax Number: 31-40-273-3416 

or as updated by either party from time to time. 

12.10 Limitation of Actions. No action, regardless of form, may be brought by either party more than twelve (12)

 

 Bitstream Inc. 

*** OEM/ISV License Agreement 
 Philips
Business Electronics B.V. 

 Page 6 of 6 
  

 months after the cause of action has arisen, except that an action for non-payment may be brought within
twelve (12) months of the last payment, but either party hereto may bring an action relating to its intellectual property rights at any time. 

12.11 Governing Law. This Agreement, all Exhibits and amendments hereto, and all purchase orders issued hereunder, shall be governed in all
respects by the laws of the State of New York. United States, excluding its conflict of laws rules. 
 12.12. Entire Agreement. This
Agreement and its Exhibits constitute the complete and exclusive statement of the agreement between the parties and supersede all prior oral and written agreements, communications, representations, statements, negotiations and undertakings relating
to the subject matter herein. 
 12.13 Press Releases. Any press release(s) or public announcement(s) concerning this Agreement or the
subject manner hereof or any further agreement(s) between Bitstream and Licensee shall be mutually agreed upon by Bitstream and Licensee. 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized
representatives as of the date first set forth above. However, this agreement shall nor be deemed executed until forwarded to Bitstream accompanied by a signed purchase order (License: Please attach a copy hereto.) 

 

							
	Bitstream Inc:	 	Philips Business Electronics B.V.
				
	By:	 	 ***
	 	By:	 	 ***

	Print Name:	 	 ***
	 	Print Name:	 	 ***

	Title:	 	Vice President, Sales & Marketing	 	Title:	 	 Gen. Mgr. CoB Dig. Receivers

	Date:	 	 12-24-97
	 	Date:	 	 23-12-97

Bitstream Inc 
 *** OEM/ISV License
Agreement 
 Philips Business Electronics B.V. 

 Exhibit A 

to Bitstream, Inc. 

License Agreement 

Outline(s) 

This Exhibit A is effective as of the
6th day of October, 1997 and is part of and shall be
governed by the License Agreement made effective on October 6, 1997 by and between Bitstream Inc. (“Bitstream”) and Philips Business Electronics B.V. (“Licensee”). The products listed below are licensed to
Licensee under the terms and conditions of the License Agreement referenced above, and in consideration of Licensee’s agreement to pay the access fees and royalties set forth in Exhibit B of the Agreement: 

 

	1.	An Outline in the Bitstream *** font file format and Unicode encoding in each of the following typeface styles: 

 

	•	Three (3) Outlines, one (1) Korean, one (1) Chinese and one (1) Kanji, to be selected from Bitstream’s current available library offering.

  

	2.	An Outline in the Bitstream *** font file format and Unicode encoding in each of the following typeface styles: 

 

	•	Ten (10) Latin or non-Latin (non-Asian) Outlines to be selected from Bitstream’s current (non-ITC) library offering. 

Any additional Outlines ordered by Licensee will be governed by the terms and conditions of this Agreement. 

Bitstream shall provide-engineering support, to Licensee for additional *** production for non-Bitstream Outlines at the request of Licensee in
accordance with the terms and subject to the face set forth in Section 8.2 to the Software Maintenance Agreement of even date herewith between Bitstream and Licensee. 

 

							
	Bitstream Inc.	 	Philips Business Electronics B.V.:
				
	By:	 	 ***
	 	By:	 	 ***

	Print Name:	 	***	 	Print Name:	 	 ***

	Title:	 	Vice President, Sales & Marketing	 	Title:	 	 Gen. Mgr. Cob Dig. Receivers

	Date:	 	 12-24-97
	 	Date:	 	 23-12-97

Bitstream Inc. 
 OEM/ISV License
Agreements 
 Philips Business Electronics B.V. 

 

					
	 Bitstream Inc.
 ***
OEM/ISV License Agreement
 Philips Business Electronics B.V.
	 	7	  	

 Exhibit A-1 

to Bitstream Inc. 

License Agreement 

*** Product Description 

This Exhibit A-1 is effective as of the
6th day of October, 1997 and is part of and shall be
governed by the License Agreement made effective on October 6, 1997 by and between Bitstream Inc. (“Bitstream”) and Philips Business Electronics B.V. (“Licensee”). The product(s) listed below are licensed to
Licensee under the terms and conditions of the License Agreement referenced above, and in consideration of Licensee’s agreement to pay the access fees and royalties set forth to Exhibit B of the Agreement. 

 

	 	•	 	 *** Software in the following version(s): 

  

	 	•	 	 *** Software Developers Kit Version 2.4 *** only, including the following components: 

 

	 	•	 	 Documentation in HTML electronic format 

  

	 	•	 	 Implementers Guide 

  

	 	•	 	 *** 

  

	 	•	 	 Sample programs for Macintosh, Windows, Maul, and UNIX, which include Source, library, make and platform specific executables

  

	 	•	 	 Logical CD-ROM structure that clearly defines the specific platforms sub-directories with platform specific code and applicable documentation

  

	 	•	 	 Within the *** directories there are merely ITV related color modes and color lookup table modes *** 

 

	 	•	 	 Sample *** fonts 

  

	 	•	 	 *** for the rendering technology 

  

	 	•	 	 *** 

  

	 	•	 	 *** 

  

	 	•	 	 *** 

  

	 	•	 	 Includes updates and upgrades to the *** when and if available, for a period of twelve (12) months 

 

							
	 Bitstream Inc.
	 	Philips Business Electronics B.V.
				
	By:	 	 ***
	 	By:	 	 ***

	Print Name:	 	 ***
	 	Print Name:	 	 ***

	Title:	 	 Vice President, Sales & Marketing
	 	Title:	 	 ***

	Date:	 	 ***
	 	Date:	 	 23-12-97

 

					
	 Bitstream Inc.
 ***
OEM/ISV License Agreement
 Philips Business Electronics B.V.
	 	8	  	

 Exhibit B 

to Bitstream Inc. 

License Agreement 

Payment—*** SOFTWARE AND OUTLINES 

Pay As You Go Royalty Payment Plan 

This Exhibit B is effective as of the
6th day of October, 1997 and is part of and shall be
governed by the License Agreement made effective on October 6, 1997 by and between Bitstream Inc. (“Bitstream”) and Philips Business Electronics B.V. (“Licensee”). 

1. Access Fees 
 The one-time access fee
due and payable to Bitstream according to Section 3 of the Agreement for the Outlines and *** described in Exhibits A and A-I, which shall be due and payable to Bitstream within thirty (30) days of contract execution, is as follows *** for
the Chinese, Korean and Kanji Outlines described in Exhibit A. Section 1 and 2 and *** for the *** described in Exhibit A-I. No access fee shall be due for the ten (10) Latin or non-Latin (non-Asian), non-ITC Outlines set forth in Exhibit
A. Section 3. The total access fee due and payable to Bitstream shall be***. 
 Licensee may order additional Outlines to those set forth
in Exhibit A. which may include Latin, non-Latin and Asian typeface styles. The one-time access fee for each additional Outline, which shall be due and payable to Bitstream within thirty (30) days of delivery of the Outline shall be as follows:

  

							
	 	  	 Typeface style
	  	 Access Fee (USD)
	  	  
				
	i.	  	One (I) Latin Outline	  	*** per Outline	  	
	ii.	  	One (I) non-Latin Outline	  	*** per Outline	  	
	iii.	  	One (I) Asian Outline	  	*** per Outline	  	

 Any additional Licensed Products ordered pursuant to this Agreement shall be subject to Bitstream’s then
current access fee. 
 2. Shipping Charges 

*** 
   

					
	 Bitstream Inc.
 ***
OEM/ISV License Agreement
 Philips Business Electronics B.V.
	 	9	  	

 3. Bitstream Royalty Rates 

a. In addition to the access fees set forth in Section I of this Exhibit B, and in consideration of the right to sublicense the Licensed Products,
Licensee shall pay royalties to Bitstream at the rate(s) set forth below: 
 (a) For the first one (1) million shipments of the Licensed
Products incorporated with Licensee’s Systems: 
  

			
	 Licensed Product(s)
	  	 Royalty Rate(s) (USD)

	*** CSP only, shipped with no Outlines	  	*** per shipment
		
	Each additional Outline:	  	
	 *** each additional Latin Outline
	  	
	 *** each additional non-Latin Outline
	  	
		
	*** CSP only, shipped with one (1) Asian Outline	  	*** per shipment
		
	Each additional Outline:	  	
	 *** each additional Asian Outline
	  	

 (b) Once the volume of shipments has reached one (1) million System units, the royalty structure shall be as
follows: 
  

			
	 Licensed Product(s)
	  	 Royalty Rate(s) (USD)

	 *** CSP only, shipped with no Outlines
	  	*** per shipment
		
	 Each additional Outline:
	  	
	 *** each additional Latin Outline
	  	
	 *** each additional non-Latin Outline
	  	
		
	 *** CSP only, shipped with one (1) Asian Outline
	  	*** per shipment
		
	 Each additional Outline:
	  	
	 *** each additional Asian Outline
	  	

 b. A royalty is due for each copy of the *** or Derivative Work thereof, sublicensed by License, or its
Sublicense, for use on or in a single System. A royalty is due for each copy of the *** that is part of a system which produce revenue, including upgrades to that system. 

c. The licensed *** shall be limited to use-as specified under “Permitted Uses”. Section 1.2(g) of this Agreement—within a
specific System product due and/or for support of a specific System. 
 4. Payment of Bitstream Royalties 

a. Royalties are due and payable to Bitstream as they are, on a calendar quarterly basis, at the same time the royalty report is due, as set forth is
Section 6(a) of this Exhibit. 
 b. In consideration of the license granted in the Agreement, and of the royalty rate(s) granted above,
License agrees to sublicense or transfer Licensed Products in Object Code only and as an inseparable unit with Systems. 
  

					
	 Bitstream Inc.
 ***
OEM/ISV License Agreement
 Philips Business Electronics B.V.
	 	10	  	

 5. Royalty Reporting 

a. Licensee shall furnish written royalty reports and royalty payments to Bitstream within thirty (30) days after the end of each calendar quarter
indicating the number of Licensed Products sublicensed during the preceding calendar quarter and the number of output devices that used Licensed Products as described above. A royalty report form is attached hereto as Attachment 1 to record each
Licensed Product sublicensed, the number of sublicensed copies and the applicable royalty rate(s). 
 b. Licensee shall maintain invoices and
other documentation necessary to substantiate the number of royalty payments due under this Agreement for a period of three years from the date the applicable royalty report was sent to Bitstream. Bitstream or its authorized representative may at
Bitstream expense, inspect and copy such documentation at all reasonable times during normal business hours. A royalty period may not be inspected more than once. If a royalty period has not been inspected within said three (3) years, then the
royalty reports rendered for such period shall be deemed to Bitstream. 
 Bitstream agrees to keep all information obtained during any royalty
report inspection confidential and agrees that such information shall not be used for any purpose except to verify and collect the royalties due under this Agreement. Licensee shall provide to Bitstream financial statements and such other financial
information, certified by an officer of Licensee, as Bitstream shall request from time to time, so long as any money may be due or may become due from Licensee to Bitstream under this Agreement. 

 

							
	 Bitstream Inc.
	 	Philips Business Electronics, B.V.
				
	 By:
	 	 ***
	 	By:	 	 ***

	 Print Name:
	 	***	 	Print Name:	 	 ***

	 Title:
	 	Vice President, Sales & Marketing	 	Title:	 	 Gen. Mgr. Cob Dig. Receivers

	 Date:
	 	 15-24-97
	 	Date:	 	 23-12-97

 

					
	 Bitstream Inc.
 ***
OEM/ISV License Agreement
 Philips Business Electronics B.V.
	 	11	  	

 Exhibit C 

to Bitstream Inc. 

License Agreement 

Trademark Use Guidelines 

Please include the appropriateTM or
® symbol after the first use of a trademark, along with the corresponding noun. Thereafter, the noun should
appear frequently with the trademark. The following nouns are only suggestions; there may be other words that are equally appropriate. Do not use trademarks as nouns; trademarks are adjectives. Appropriate uses of trademarks identify products
originating with Bitstream: 
  

			
	Trade v. Company Name	  	Bitstream® ***
	— Bitstream Inc. [the company - no attribution]	  	Bitstream® ***
	— Bitstream’s products [no attribution]	  	Bitstream® ***
	—
Bitstream® products(s)	  	Bitstream® ***
		  	Bitstream® ***
	Software	  	Bitstream® ***
	—
Bitstream® ***	  	Bitstream® ***
	—
Bitstream® ***	  	Bitstream® ***
	—
Bitstream® ***	  	Bitstream® ***
	—
Bitstream® ***	  	Bitstream® ***
	—
Bitstream® ***	  	***
	—
Bitstream® ***	  	***
	—
Bitstream® ***	  	***
	—
Bitstream® ***	  	***
		  	***
	Typefaces	  	***
	—
Bitstream® ***	  	***
	—
Bitstream® ***	  	***
	—
Bitstream® ***	  	

 Sample attribution Paragraph for trademarks 

Bitstream *** Bitstream *** and *** registered trademarks and *** and Bitstream *** are trademarks of Bitstream Inc. The trademarks *** licensed to
Bitstream Inc. in West Germany, France and the United Kingdom by Electronic Pricing Systems, Ltd. 
 ITC Typefaces 

When using the trademarks of an *** typeface (designed as an *** typeface by Bitstream) in Advertising or publicity the letters *** shall precede the
entities typeface name and be considered part of the name of that typeface. A registration notice shall be applied legibly to registered trademarks of ***. The wording for this attribution is *** name of typeface) is a registered trademark of the
*** and *** are registered trademarks of Esselte Corp. *** and *** are produced and distributed by *** a registered trademark of ***. 
  

					
	 Bitstream Inc.
 ***
OEM/ISV License Agreement
 Philips Business Electronics B.V.
	 	12	  	

 Attachment 1 

to Bitstream Inc. 

License Agreement 

Royalty Report Form 
  

					
	 For:
	  	Philips Business Electronics B.V	  	
			
	 Billing Address/Tel/Fax/Contact
	  		  	
			
	 Royalty Accounting Contact
	  	  
	  	
			
	 Royalty Report for Quarter Ended
	  	  
	  	

 Please fill out the table below for each Outline sublicensed during the past quarter: 

 

							
	 Licensed Product(s)
	 	 Total Units Shipped

this Quarter
	 	 Royalty Rate
	 	 Royalty Date

(USD)

		 		 		 	
		 		 		 	
		 		 		 	
	 Total Royalty Payment due Bitstream this quarter
	 	

 I certify that the above royalty report is complete and accurate: 

 

			
	  
	 	  

	Authorized Signature	 	Date

 Result with payment to Licenser within thirty
(30) days after end of quarter. 
 For wire transfer please remix payment to: 

 

			
	 International and domestic wire: 
	 	 Domestic wire

	 BayBank

Burlington, MA 01803 U.S.A.

ABA 011302357

Bitstream Inc. Business Checking Account

Account ***
	 	 Bitstream Inc.
 P.O. Box 5-0077

 Woburn MA 01815-0077

   

					
	 Bitstream Inc.
 ***
OEM/ISV License Agreement
 Philips Business Electronics B.V.
	 	13	  	

 Exhibit B-2 

SOFTWARE MAINTENANCE AGREEMENT 

By and between: 
 Bitstream Inc. of 215 First
Street, Cambridge, Massachusetts 02142-1270, USA (hereinafter referred to as “Supplier”) 
 and 

Philips Business Electronics B.V. of Eindhoven, The Netherlands, (hereinafter referred to as “Philips”), also acting for and on behalf any
company owned or controlled by Philips Electronics N.V. 
 WHEREAS, Philips and Supplier have entered into a *** License Agreement, dated of
even date herewith (hereinafter referred to as “Main Agreement”); 
 WHEREAS, Philips uses the Software delivered and/or licensed by
Supplier under the Main Agreement; 
 WHEREAS, during the warranty period under the Main Agreement Supplier has provided Participant with
certain support and maintenance services; 
 WHEREAS, upon expiration of this warranty period, Philips wishes Supplier, and Supplier is willing
to provide, Participant with certain services as defined hereinafter; 
 NOW, THEREFORE, THE PARTIES HERETO HAVE AGREED ON THIS
         DAY OF          199     AS FOLLOWS: 

Article 1 

Definitions 

“Affiliated Company” shall mean any legal entity of which at least 50% (fifty percent) of the voting shares (or similar voting rights),
now or hereafter are owned or controlled, directly or indirectly, by Philips Electronics N.V., or a legal entity in which Philips Electronics N.V. otherwise has the ability to direct the management provided that such Affiliated Company is not a
direct competitor of Supplier, but any such legal entity shall be considered to be an Affiliated Company only for so long as such control exists. 

“Agreement” shall mean this Software Maintenance Agreement and all Schedules hereto signed or initiated by the parties. 

“Backward Compatibility” shall mean that a new part of the Equipment or new software can replace the former part or Software without
degrading in any manner the functionality of the Equipment. 
  

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 “Contract Fee” shall mean the fixed fee per Contract Year, as specified in Exhibit A
hereto, to be paid by Participant in return for the services to be rendered by Supplier pursuant to this Agreement. 
 “Contract
Year” shall mean the period of twelve (12) months starting at the Effective Date of this Agreement as well as any and all subsequent one year periods thereafter. 

“Critical Errors” shall mean Errors which materially affect the use of the Software and which hamper the business operations of
Participant. 
 “Customised Software” shall mean software developed by Supplier under the Main Agreement, and any Workarounds,
Updates and Upgrades delivered to participant under this Agreement and/or the Main Agreement, including all appertaining Documentation and fonts which are available from Supplier. 

“Effective Date” shall mean the date of execution by the parties of this Agreement. 

“Environment” shall mean the central processing unit(s) and associated equipment, designated by Participant. 

“Equipment” shall mean the central processing unit(s) and/or computer hardware or software systems(s) and associated equipment on which
the Software is installed. 
 “Error” shall mean any failure of the Software to operate in accordance with the Specifications
and/or the intended purpose pursuant to the Main Agreement. 
 “Exhibits” shall mean all ancillary documents attached to the
Main Agreement and marked as exhibits. 
 “Fatal Errors” shall mean Errors which block the operations of the Participant,
resulting in the impossibility of any useful work getting done. 
 “Major Errors” shall mean any Errors which disable or
materially affect the functionality of the Software under conditions of normal use. 
 “Materials” shall mean the physical
software carriers, support materials, supplies and consumables as shall be required for the use (and changing or updating/upgrading) of the Software. 

“Minor Errors” shall mean any Errors other than Major or Critical Errors. 

“Participant” shall mean an Affiliated Company who during the term of the Main Agreement has issued a Purchase Order to Supplier in
accordance with the Main Agreement. 
  

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 “Schedules” shall mean all ancillary documents attached to this Agreement and marked as
schedules. 
 “Software” shall mean the integrated version of the Standard Software and the Customised Software, including any
Updates and Upgrades, which Participant is licensed to use and/or which is developed for Participant under this Agreement and/or under the Main Agreement. 

“Source Code” shall mean the original software code of the Software written in a programmer readable format, being the code prior to
compilation by a computer system, in primed form and on electromagnetic or optical media, i.e. disc or tape and/or other media agreed upon by and between Participant and Supplier. 

“Standard Software” shall mean Supplier’s standard software as specified in the Main Agreement and any Workarounds, Updates and
Updates delivered to Participant under this Agreement and/or the Main Agreement including all appertaining Documentation. 

“Update” shall means improved Software having the same functional specifications as before, but originating from changed, corrected or
debugged source code. 
 “Upgrade” shall mean Software having additional functionality as compared to the immediately preceding
version of the Software. 
 “Workaround” shall mean it temporary remedy of an Error. 

Article 2 

Scope 
  

	2.1	During the term of this Agreement Supplier shall carry out and provide to Participant the services specified in the Articles 3,4,5,6,7, and 8 in accordance with the
terms and conditions of this Agreement. Any and all services are included in the Contract Fee unless otherwise stated in this Agreement. 

  

	2.2	Supplier shall provide maintenance and support services as set forth hereinafter for each Upgrade provided hereunder against the rates set forth in Exhibit. A hereto
for a period of seven (7) years. 

 Article 3 

Error Reporting 
  

	3.1	Errors may be reported on a 24 hours per day, 365 days per year basis, by electronic mail, voice mail, fax or telephonic recording capability. In addition, Supplier
shall provide each Participant with a telephone number to an active voice mail box, in which Participant may report. Errors at any time, that shall immediately notify via pager and telephone appropriate Bitstream support personnel until receipt of
the message left in such voice mail box is retrieved by such Bitstream support personnel. 

  

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 Article 4 

Remedial Maintenance 
  

	4.1	In the event of a Fatal Error, Supplier shall respond within four (4) hours after notification thereof by Participant. Supplier shall use best efforts to provide
at least a Workaround without material interruption of the Software within two (2) days. A permanent solution for a Fatal Error shall be provided by Supplier with an Update of the Software as soon as possible thereafter, but no later than
fourteen (14) days after the report by Participant. 

  

	4.2	In the event of a Critical Error, Supplier shall respond within four (4) hours after notification thereof by Participant. Supplier shall use best efforts to
provide at least a Workaround without material interruption of the Software within five (5) days. A permanent solution for a Critical Error shall be provided by Supplier with an Update of the Software as soon as possible thereafter, but no
later than fourteen (14) days after the report by Participant. 

  

	4.3	In the event of a Major Error, Supplier shall use reasonable commercial efforts to provide at least a Workaround within ten (10) days after the reporting of such
Error by Participant. A permanent solution for a Major Error shall be provided by Supplier with an Update of the Software as soon as possible thereafter, but no later than thirty (30) days after the report by Participant.

  

	4.4	Minor Errors shall be solved by Supplier in the next regular Update of the Software, but no later than ninety (90) days after the report by Participant.

  

	4.5	The category of the respective Error shall be determined by Participant after consultation of Supplier. 

Article 5 

Updates and Upgrades 
  

	5.1	Supplier shall at all times ensure that the Software has at least a similar performance- ROM/RAM size ratio as competitive software products, and shall use reasonable
efforts to continuously reduce the ROM/RAM size of the Software, and to remain competitive with respect to the functionality thereof. Furthermore, Supplier shall incorporate all solutions to Errors solved in regular Updates, or incorporate a
permanent solution for Critical and/or Major Errors in accordance with Article 4. All Updates and Upgrades shall be fully tested by Supplier for Backward Comparability prior to being released, and Supplier and the Participant shall jointly execute
acceptance tests prior to payment. 

  

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	5.2	The release frequency of regular Updates shall be a minimum of one (1) and a maximum of four (4) regular Updates per year. 

 

	5.3	Supplier shall make all Updates, including interim Updates, of the Software available to each Participant and each Participant shall have the option to install or not
to install the regular Updates. 

  

	5.4	As part of the installation of the Software Supplier shall deliver to Participant the Source Code of the Customized Software and put the Source Code of such updated
and/or upgraded Software in escrow in accordance with Article 17. 

  

	5.5	All Upgrades and Updates shall be accompanied by a release document containing the following information: 

 

	 	  -	improvements/solved Errors, 

	 	  -	Errors that were reported but not solved and other Errors known to Supplier, 

	 	  -	software identification number(s), 

	 	  -	listing of all the files of the Update, 

	 	  -	installation procedure, 

	 	  -	functional changes compared to the prior release. 

  

	5.6	Supplier will include and maintain all relevant information on the Environment, including the Software delivered to each Participant in a configuration database.

  

	5.7	Supplier shall provide Updates and Upgrades during the Term of this Agreement, provided the Participant has paid the Contract Fee in each Contract Year.

  

	5.8	Any and all Updates, Upgrades and the installation on the Equipment thereof are included in the Contract Fee. 

 

	5.9	Supplier shall render support as described in this Agreement irrespective of the Software version. 

 

	5.10	Supplier shall provide Philips with a twenty-four (24) months rolling forecast of its Software versions and releases every three (3) months. 

 

	5.11	In the event that any Participant makes changes, revisions or updates to the Standard Software, it shall not be the responsibility of Supplier to correct any defects or
Errors resulting from such changes, revisions or updates. 

 Article 6 

On Site Support 
  

	6.1	Participant may request on site support from Supplier. Supplier shall then have appropriate personnel available at the designated site within a response time of
telephone appropriate Bitstream support personnel until receipt of the message left in such voice mail box is retrieved by such Bitstream support personnel. 

  

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	  	seven (7) days after receipt of the Participant’s on site support request. 

 

	6.2	Supplier’s service engineers which perform the on site support shall adhere to the applicable internal Philips rules. 

 

	6.3	On site support shall be charged at a rate of *** per day plus expenses, subject to the terms specified in Article 6.4 hereunder, or at any other rate mutually agreed
upon in writing between the parties. However, the first eighty (80) hours of such on site support shall be ***. 

  

	6.4	On Philips’ express request Supplier shall undertake business trips in connection with the execution of this Agreement, it being understood that the arrangements
for such business trips have to be made through Philips Reisbureau BV; in such case Philips shall make available lodging and traveling facilities to Supplier. The remaining travel expenses for authorized business trips, shall be reimbursed to
Supplier against receipt of a specified invoice, such expenses are to be in accordance with the applicable regulations for Philips’ personnel. 

  

	  	In case Supplier has to organize its own travel and accommodation arrangements for above mentioned business trips, expenses will be charged as incurred specifying date,
nature and reason of expenses and name of Supplier involved. Such expenses are to be in accordance with the applicable regulations for Philips’ personnel. 

 

	  	Not withstanding any provisions to the contrary, all expenses have to be approved by Philips, whereas Supplier has to supply detailed specifications of the declared
expenses by specifying date, nature of expenses and employee of Supplier involved. 

  

	  	Invoices should be sent to the address indicated in the purchase order. 

Article 7 

Error Reporting 
  

	7.1	Errors shall be reported by Participant to Supplier by way of Error Reports with an Error Report Number as reference, which will be sent by fax or E-mail. Errors will
be classified by Participant “Fatal”, “Critical”, “Major” or “Minor”. 

  

	7.2	Supplier shall regularly inform Participant in a Progress Report about the progress in solving and about the status of the reported Errors, until such Errors are solved
and accepted by Participant. Supplier shall mention the Error Report Number as a reference and confirm all progress in writing via fax or E-mail and in accordance with the procedure described per Error category hereafter. 

 

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	 	-	Fatal Errors: first progress report within 12 hours after the report by Participant, and on a daily basis thereafter; 

 

	 	-	Critical Errors: first progress report within 48 hours after the report by Participant, and on a daily basis thereafter; 

 

	 	-	Major Errors: first progress report within 2 days after the report by Participant, and on a weekly basis thereafter; 

 

	 	-	Minor Errors: first progress report within 1 month after the report by Participant, and on a monthly basis thereafter. 

Article 8 

Training/Engineering Support 
  

	8.1	At the request of Participant, Supplier shall provide technical and/or other training to Participant’s personnel on mutually agreeable terms and conditions.

  

	8.2	At the request of Participant, Supplier shall provide Participant with custom engineering support and additional *** production for non-Bitstream Outlines (as defined
in the Main Agreement). Custom engineering support shall be charged at a rate of *** per day, or of any rate mutually agreed upon in writing between the parties. The *** production for Latin and Non-Latin Outlines shall be charged at a rate of ***
per Outline, and the production of Asian Outlines shall be charged at a rate of *** per Outline. However, for the first five Outline productions shall be ***. The first eighty (80) hours of custom engineering support shall be ***.

 Article 9 

Project Manager 
  

	9.1	Each of Supplier and Participant shall appoint a project manager having sole responsibility for co-ordinating issues related to the Agreement, and who shall further the
progress and continuity of the day-to-day activities to be performed hereunder. 

 Article 10

 Philips’ Responsibilities 

 

	10.1	For on site support, Participant shall provide reasonable access to the Equipment for Supplier’s service engineers, adequate working space as well as all
reasonable facilities and assistance necessary for the performance of the services. Participant may elect to provide access to the Equipment by means of a call-back modem connection in order to speed up any necessary remote maintenance and support
activities. 

  

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	10.2	In case of a Fatal Error or Critical Error. Participant shall use best efforts to promptly inform Supplier of the existence of such Fatal or Critical Error.

 Article 11 

Intellectual Property Rights 
  

	11.1	The delivery by Supplier to Participant of any Workaround, Update, and/or Upgrade shall constitute 

 

	 	(i)	Supplier’s grant to Participant of a non-exclusive, perpetual licence to use the Workaround, Update and/or Upgrade of the Standard Software on the Equipment and
the Documentation; and 

  

	 	(ii)	the sale by Supplier to Participant of the Materials in which of the Workaround, Update and/or Upgrade of the Standard Software is incorporated. The purchase price for
such Materials is comprised in the Contract Fee. 

  

	11.2	The license granted pursuant to Article 11.1 above shall survive the expiration and/or termination of this Agreement for any reason. 

 

	11.3	Supplier represents and warrants that it has sufficient right and title to grant the licenses to Participant under this Agreement. 

 

	11.4.1	All copyrights and all other intellectual property rights in the Standard Software, Customised Software and any Workarounds, Updates and/or Upgrades thereto shall
remain with Supplier. 

  

	11.4.2	All copyrights and all other intellectual property rights in any revisions, improvements, alterations, adaptations, modifications, translations, abridgements or
expansions of the Standard Software created or made by Participant shall vest in Participant (Participant Proprietary Rights). 

  

	11.5	Any variations from the ownership provisions contained in Section 11.4 hereabove shall be subject to the mutual agreement of the parties. 

 

	11.6	If notified promptly in writing of any action and all prior related claims brought against Philips alleging that Philips’ use or sublicensing of the unaltered
Software infringes, a patent, copyright or trademark in any country worldwide, Supplier will defend that action, at its expense, and pay any costs and damages awarded against Philips in the action, provided that Supplier shall enjoy sole control of
the defense of any such action and all negotiations for its settlement or compromise. If a final injunction is obtained in such action against Philips’ use of any Software, or if, in Supplier’s opinion, any Software is likely to become the
subject of a claim of infringement, Supplier may, at its option and expense, either. 

  

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	 	(a)	procure for Philips the right to continue to use the Software; or 

  

	 	(b)	replace or modify the Software so that it becomes non-infringing. 

  

	    	In the event that only option (a) above is feasible and Philips is required to pay royalties to a third party to continue to use the Software, Philips may set off
any amounts paid by Philips for the right to continue to use the Software against the royalties due to Supplier for the use of such Software; provided, however, that if Supplier determines that obtaining the right to continue to use the Software
will be cost prohibitive, Supplier shall be under no obligation to continue to license the Software to Philips. Philips shall defend and hold Supplier harmless against all expense, judgments and losses for alleged infringement of any patent,
copyrights, or other right that results from (i) Philip’s designs, specifications or instructions, (ii) modifications to the Software made by or for Philips, or (iii) use of any Software with any other product than the System (as
defined in the Main Agreement). 

  

	    	No costs or expenses shall be incurred for the account of either party under this Article without the prior written consent of the other. 

 

	    	This Section 11.6 states the entire liability of both parties with respect to any infringement of patents, copyrights or other rights. 

Article 12 

Fees and Payment 
  

	12.1	In return for the services performed by Supplier under this Agreement, Participant shall pay to Supplier the Contract Fee thirty (30) days prior to the start of
each Contract Year, which is specified in Exhibit A hereto. 

  

	12.2	All fees are net and exclusive of any taxes, duties or charges which might be levied in connection therewith. All payments shall be in United States Dollars by cheque
or transfer to the account indicated on the invoices. 

 Article 13 

Warranties and Liability 
  

	13.1	During the term of this Agreement Supplier represents and warrants to Participant that any and all Workarounds, Updates and Upgrades shall not cause any degrading of
functionality of the Software (backward compatibility); 

  

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	13.2	Supplier’s liability shall be limited to direct damages, losses or injury caused by any defect, failure of the Software resulting from the execution of the
services to be performed under this Agreement. 

 Article 14 

Quality 
  

	14.1	Supplier must demonstrate continuous efforts to achieve conformity with CMM level 3. 

 

	14.2	Philips and each Participant have the right to visit Supplier’s premises during regular business hours with reasonable prior notice to confirm compliance with the
quality procedures agreed upon by the parties and set forth in writing. 

 Article 15 

Term 
  

	15.1	This Agreement is effective as of the Effective Date and shall remain in effect as long as at least one Participant requires the services of Supplier as set forth
herein, provided that the Participant has paid the Contract Fee in accordance with the provisions of Section 12.1 hereof. 

  

	15.2	Either party may terminate this Agreement in the event the other party fails to meet any of its material obligations under this Agreement (but in case of a material
default of a Participant, Supplier may only terminate this Agreement with regard to such Participant), provided that written notice of the alleged default to the failing party is given and that during the sixty (60) days period following said
notice, the failing party has not remedied such default to the reasonable satisfaction of the other party. Should such event occur, termination shall become effective at the end of said sixty (60) day period or on the date set forth in such notice.

  

	15.3	Either party (but in case of a Participant, only with regard to such Participant) may terminate this Agreement by written notice with immediate effect in the event
that: 

  

	 	-	the other party makes an assignment for the benefit of creditors; or 

  

	 	-	the other party becomes insolvent, or voluntary or involuntary proceedings are instituted by or against such other party under any applicable insolvency laws and such
proceedings are not terminated within ninety (90) days, or a receiver is appointed for such party; or 

  

	 	-	the other party ceases to trade as a going concern; or 

  

	 	-	the control over the other party shall be transferred to others than those exercising control at the time of the signing of this Agreement. 

 

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 Article 16 

Confidentiality 
  

	16.1	Information may be transferred between the parties to the extent necessary to fulfill the purposes set forth in this Agreement) hereinafter referred to as the
“Authorised Purpose”). Such information may be, without limitation, in the form of business and/or financial records, specifications, samples, photographs, drawings or other documents. To the extent that such information is considered
confidential, the disclosing party will so indicate to the recipient party (a) in the case of information disclosed in documentary or other tangible form, by labelling same as “confidential”, “proprietary”,
“copyright” or the like, or (b) in the case of intangible disclosures, such as oral, visual or machine readable disclosures of information, by confirming same as proprietary in writing within one month after disclosure. Information so
labelled or confirmed is hereinafter referred to as “Confidential Information”. 

  

	16.2	All Confidential Information disclosed or transferred by either party to the other shall remain the property of the disclosing party. 

 

	16.3	The disclosing party will provide all Confidential Information on an “as is” basis, without any warranty whatsoever, whether express, implied or otherwise,
regarding its accuracy, completeness or otherwise, and neither party shall be liable for any direct, special, incidental, consequential or other damages. 

  

	16.4	The parties agree that, unless the disclosing party gives its prior written autorisation, they shall, during a period of three (3) years from the date of
disclosure of any Confidential Information hereunder. 

  

	 	a.	Not use of the Confidential Information disclosed by the other pursuant to Clause I for any other purpose than for the Authorised Purpose; 

 

	 	b.	protect the other party’s Confidential Information against disclosure in the same manner and with the same degree of care, but not less than a reasonable degree of
care, with which the receiving party protects confidential information of its own; 

  

	 	c.	limit circulation of the Confidential Information disclosed by the other to such employees of the parties and of their affiliated companies as have a need to know in
connection with the Authorised Purpose. 

  

	16.5	The parties agree that information disclosed by the parties pursuant to this Agreement which would otherwise be Confidential Information shall not be deemed
Confidential Information to the extent that it can be proven by written records that said information: 

  

	 	a.	is part of the public domain without violation of this Agreement; 

  

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	 	  b.	is known and on record at the receiving party prior to disclosure by the disclosing party; 

 

	 	  c.	is lawfully obtained by the receiving party from a third party who is not bound by similar confidentiality obligations; 

 

	 	  d.	is developed by the receiving party completely independently of any such disclosure by the disclosing party; 

 

	 	  e.	is ascertainable from a commercially available product; or 

  

	 	  f.	is disclosed pursuant to administrative or judicial action, provided that the receiving party shall use its best efforts to maintain the confidentiality of the
Confidential Information e.g. by asserting in such action any applicable privileges, and shall, immediately after gaining knowledge or receiving notice of such action, notify the disclosing party thereof and give the disclosing party the opportunity
to seek any other legal remedies so as to maintain such Confidential Information in confidence. 

  

	    	If only a portion of the Confidential Information falls under any of the above subsections, then only that portion of the Confidential Information shall be excluded
from the use and disclosure restrictions of this agreement. 

  

	16.6	Unless specifically stated otherwise in this Agreement, nothing herein contained shall be construed as a grant by implication, estoppel or otherwise, of a license of
any kind by either party to the other e.g. to make, have made, use or sell any product using Confidential Information or as a license under any patent, patent application, utility model copyright, mask work right, or any other intellectual property
right. 

 Article 17 

Escrow Arrangement 
  

	17.1	Supplier shall, in the presence of Participant, deposit (a copy of) all Source Codes as well as objects and executable codes of the Software, including all Updates and
Upgrades upon release thereof, the so-called “Character Shape Recorder” and, to the extent Supplier is entitled to do so, all Documentation and tolls required for the continued use within any products which work cooperatively with the
Software, the maintenance, the enhancement and the modification of the Software, together with the names of all its software engineers involved in the design, development and/or maintenance of the Updated and/or Updated Software (hereinafter
collectively referred to as the “Sources”), with ***, Civil-Law Notaries of Eindhoven. The Netherlands (the “Escrow Agent”) within 30 (thirty) days from date of installation of each Update and/or Upgrade of the Software as
referred to in Article 5 thereof. 

  

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	17.2	Without limiting Supplier’s liability to Philips under this Agreement in any way whatsoever, it has been agreed that solely in the following cases where Supplier:

  

	 	  a)	goes into liquidation procedure (either voluntarily or forced); or 

  

	 	  b)	has a winding up, receiving or administration order made against it; or 

  

	 	  c)	notifies Philips in writing that it desires to stop development of the Software; or 

 

	 	  d)	within 30 (thirty) days of the receipt by Supplier of notification in writing by Philips that Supplier has not remedied any other material breach of this Agreement.

  

	    	Philips itself, or any of the Participants, shall be entitled and permitted to have immediate access to the Sources at the Escrow Agent and to take possession of the
Sources or to copy them for the sole purpose of continuing the production of Philips’ products, and supporting and maintaining the Software for the benefit of its customers, provided that in no event shall Philips or any of the Participants
have the right to distribute or use the Sources for any purpose other than those specified in the Main Agreement. 

  

	17.3	Upon occurrence of one or more of the triggering events, listed in Section 17.2 above, Supplier grants to Philips and each Participant a non-exclusive perpetual
world-wide royalty-free irrevocable license (with the right to subcontract all work to be performed in connection herewith) under any and all copyright and other proprietary rights and know-how relating to the pertaining Software to use the Software
for the purposes set out in Section 2.1 of the Main Agreement, and further to modify, enhance, maintain and correct Errors in the Software by making use of Suppliers’ copyright and other proprietary rights and know-how, without any
liability towards Supplier such as but not limited to payment of royalty or other compensation and without any restriction or limitation of territory or otherwise. 

 

	17.4	Any other provisions with respect to the deposit and use of the Sources, the contract with the escrow agent and the costs involved with the deposit(s) shall be detailed
in Exhibit D. In the event of contradiction or conflict between the provisions of this Article 17 and the provisions contained in Exhibit D, the former shall supersede. 

 

	17.5	Supplier’s failure to comply with the above provisions, including those laid down in Exhibit D will constitute a material breach of this Agreement.

 Article 18 

Change Requests 
  

	18.1	Philips and/or Supplier may from time to time issue change requests to the Software. A change request by Philips may require the Supplier to provide to Philips a
separate written quotation; Philips and Supplier shall mutually agree on a price for such change request 

  

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	    	which is reasonable to both parties. In executing such change request, Supplier shall provide a warranty that such modifications will not adversely affect the
performance of the Software. In case a change requires a quotation then same will require the approval by Philips thereof, whereupon Philips will issue a Purchase Order. Any such Purchase Order shall include the following information:

  

	 	  a)	detailed description of the change which is requested 

  

	 	  b)	price of the change request 

  

	 	  c)	Time schedule and agreed delivery dates 

  

	 	  d)	delivery instructions 

  

	 	  e)	deliverables 

  

	 	  f)	reference to this Agreement 

  

	    	Supplier shall deliver such change within the amount of working days agreed upon by the parties. 

Article 19 

Miscellaneous Clauses 
  

	19.1	Relationship Of The Parties The parties to this Agreement are independent contractors. There is no relationship of agency, partnership, joint venture, employment
or franchise between the parties. Neither party has the authority to bind the other or to incur any obligation on the others behalf. Each Participant shall be entitled to offset amounts due to Supplier by a Participant with amounts due by Supplier
(and/or supplying Companies and/or companies being part of the same group) to Phillips and/or to Participants. Where in the event of offset, amounts are quoted in different currencies Participant shall decide in which of these currencies the offset
shall be effected. Conversion shall be effected at the rate of exchange valid at the due date of payment of the relevant invoice(s). 

  

	19.2	Force Majeure In the event of Force Majeure, the party being delayed or damaged thereby shall inform the other party as soon as possible but in any event within
seven (7) days after the start of such Force Majeure specifying the nature of the Force Majeure as well as the estimated duration thereof. In the event the Force Majeure situation continues for more than sixty (60) days or is expected to
last longer than sixty (60) days then the other party is entitled to terminate this Agreement or any Purchase Order issued there under by simple notice in writing and without either party being entitled to any claim for damages. Otherwise both
parties rights and obligations will be suspended and new time schedules and supply dates shall be agreed upon between the parties hereto. 

  

	    	Force Majeure shall be understood to mean and include damage or delay caused by acts or regulations or decrees of any Government (de facto or de iure), natural
phenomena such as earthquakes and floods, fires, wars, shipwrecks, or other causes beyond the reasonable control of the parties and which prevent the total or partial carrying out of any obligation under this Agreement or any Purchase Order.

  

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	19.3	Entire Agreement This Agreement sets forth the entire intent and understanding among the parties relating to the subject matter hereof and merge all prior
negotiations and discussions between them and no party shall be bound by any conditions, representations or warranty other than as expressly set forth herein. This Agreement may be amended only by an instrument in writing signed by both parties.

  

	    	In the event there is a conflict between the provisions of this Agreement and the provisions of the Schedules, this Agreement shall prevail, unless otherwise
specifically agreed upon in writing. 

  

	19.4	Assignment Neither party hereto shall assign any of its rights and obligations under this Agreement to any third party without the prior written consent of the
other party which will not be unreasonably withheld. However, no consent is required for an assignment or transfer in whole or in part by Philips to an Affiliated Company, provided that such Affiliated Company is not a direct competitor of Supplier
and Philips notifies Supplier, of such assignment or transfer in writing. 

  

	19.5	Severability If any of the terms and provisions of this Agreement are determined to be invalid or unenforceable by any court of competent jurisdiction, it shall
not invalidate the rest of this Agreement which shall remain in full force and effect as if such terms and provisions had not been a part of this Agreement. 

 

	19.6	Waiver No waiver by any of the parties hereto of any breach of any condition, covenant or term thereof shall be effective unless it is in writing and it shall
not constitute a waiver of such condition, covenant or term. 

  

	19.7	Surviving Articles All terms and conditions of this Agreement which are by their nature destined (whether expressed or not) to survive the expiration or
termination of this Agreement shall so survive. 

  

	19.8	Notices Notices will be addressed as follows: 

  

	    	If to Supplier: 

      Bitstream Inc. 

      Attn. Legal Department 

      215 First Street 

      Cambridge, Massachusetts 02142 

      USA 
  

	    	If to Philips: 

      Philips Business Electronics B.V. 

      Attn. Purchasing Department Philips Consumer Electronics B.V. 

      Building SWA 6 

      P.O. Box 80002 

 

 CO-DOC-97.04 

December 23, 1997 

 - 16 - 

 

         5600 JB Eindhoven 

        The Netherlands 

 

	    	or to such other address as the pertaining party will have previously notified to the other party. 

 

	19.9	Advertisements Supplier shall not without Philips’ prior written consent use Philips’ name or trademark as such and/or use same in connection with any
advertisement or sales literature nor advertise that it is a supplier or Philips and/or that this Agreement between Supplier and Philips has been concluded. 

 

	19.10	Applicable Law This Agreement shall be subject to and construed in conformity with the laws of the State of New York, United States of America, with the
exception of the laws regarding the international sales of goods. 

  

	    	Local license agreements shall be subject to the laws of the country wherein the pertaining Participant(s) is located. 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorised representatives to be effective as of the day
and year first written above. 
  

							
	 PHILIPS BUSINESS ELECTRONICS B.V. BITSTREAM INC.
	 		 	
				
		 		 		 	
	 ***
	 		 	 ***

	Name:	 	***	 	Name:	 	***
	Title:	 	***	 	Title:	 	***
	Date:	 	23-12-’97	 	Date:	 	12-24-97

  

 CO-DOC-97.04 

December 23, 1997 

 Exhibit D 

ESCROW AGREEMENT 

This Escrow Agreement is made this      day of
            , 1997 by and between 
 Philips Business Electronics B.V. of
Eindhoven, The Netherlands, (hereinafter referred to as “Philips”), also acting for and on behalf any company owned or controlled by Philips Electronics N.V. 

and 
 Bitstream Inc. of 215 First Street,
Cambridge, Massachusetts 02142-1270, USA (hereinafter referred to as “Supplier”); 
 and 

*** Civil-Law Notaries, practicing in Eindhoven (hereinafter jointly and severally referred to as “Escrow Agent”). 

WHEREAS, pursuant to the Software Maintenance Agreement (hereinafter referred to as the “Agreement”) and the *** License Agreement (hereinafter
referred to as the “License Agreement”) between Philips and Supplier, both dated of even date herewith Philips and Supplier wish to enter into an Escrow Agreement with the Escrow Agent; 

WHEREAS, for the purpose set out in the Article 17 of the Agreement, the Escrow Agent will have an irrevocable right to make available to Philips (a copy
of) all Source Codes as well as objects and executable codes of the Software, including all Updates and Upgrades upon release thereof, the so called “Character Shape Recorder” and, to the extent Supplier is entitled to do so, all
Documentation and tools required for the continued use within any products which work cooperatively with the Software, the maintenance, the enhancement and the modification of the Software, together with the names of all its software engineers
involved in the design development, and/or maintenance of the updated and/or upgraded Software (hereinafter referred to as “the Escrow Items”) upon Philips’ request stating that one of the events mentioned in Clause 3.6 of this Escrow
Agreement has occurred; 
 WHEREAS, the Escrow Agent is prepared to maintain the deposit of the Escrow Items and release, if any, to Philips,
subject to terms and conditions of this Escrow Agreement. 

 NOW THEREFORE, THE PARTIES HERETO HAVE AGREED AS FOLLOWS: 

Article 1 

Appointment 
  

	1.1	Supplier and Philips hereby appoint Escrow Agent as the deposit holder of the Escrow Items and Escrow Agent hereby accepts such appointment on the terms and conditions
of this Escrow Agreement. 

 Article 2 

Deposit 
  

	2.1	Supplier shall in the presence of Philips’ authorized representatives (if so requested by Philips) deposit the Escrow Items with the Escrow Agent within thirty
(30) days from the effective date of the Escrow Agreement. Supplier undertakes to put duly signed markings on the outside of each container wherein the Escrow Items are deposited (hereinafter referred to as “the Container”).

  

	2.2	Furthermore, Supplier shall, each time within thirty days (30) days as from the date of delivery and acceptance by Philips of each Update and/or Upgrade of the
Escrow Items, deposit in the presence of Philips’ authorized representatives (if so requested by Philips), the corresponding relevant version of the Escrow Items. 

 

	2.3	The Escrow Items shall in any case be fully updated in the presence of Philips’ authorized representatives (if so requested by Philips) by the current version of
the Escrow Items in the month of the October 1997, and thereafter every six months, it being understood that all previous versions of the Escrow Items will remain with the Escrow Agent during the period mentioned in Article 6 hereof.

 Article 3 

Escrow Agent and Triggering Events 
  

	3.1	Escrow Agent shall confirm receipt of a new Container to Supplier and to Philips within fourteen days after receipt. 

 

	3.2	Escrow Agent shall not open the Container, unless necessary for the investigation purposes as described in Clause 3.3 below. 

 

	3.3	Escrow Agent shall, upon receipt, check the Escrow Items for any outword visible damage, and shall pay special attention to stickers and signatures used to seal the
Escrow Items. 

  

 -2- 

	 	 
Escrow agent shall confirm the receipt of the Escrow Item(s) together with a transcript of all information written on the outside of the Escrow Items and including information regarding any
discrepancies as well as any missing items or outward visible damage to Philips and Supplier within three weeks after receipt. 

Supplier shall forthwith replace damaged items and deliver missing items. 

 

	3.4	Escrow Agent shall keep the Container in a safe and fire resistant box in the same manner as Escrow Agent deals with its own deeds and other original documents.

  

	3.5	Escrow Agents shall return the Container to Supplier only on the written request duly signed by Philips (with or without co-signature of Supplier), or upon the expiry
of the escrow period as provided in Clause 6. 

  

	3.6	Escrow Agent shall deliver to Philips the Container forthwith upon Philips’ written official declaration signed by a director of Philips, including all supporting
documentation, if such is available to the general public (such as court decisions, receiver appointments, etc.), and with a simultaneous copy to Supplier, stating that one of the following events has occurred: 

 

	 	a)	goes into liquidation procedure (either voluntarily or forced); or 

  

	 	b)	has a winding up, receiving or administration order made against it; or 

  

	 	c)	notifies Philips in writing that it desires to stop development of the Software; or 

 

	 	d)	within 30 (thirty) days of the receipt by Supplier of notification in writing by Philips that Supplier has not remedied any other material breach of the Agreement.

  

	3.7	Escrow Agent shall have no obligation to check the correctness of Philips statements, and Philips shall keep Escrow Agent harmless from any claims against Escrow Agent
arising out of Escrow Agent’s acting on Philips’ requests for delivery as per Clause 3.6. Furthermore, Philips and Supplier shall indemnify and keep Escrow Agent harmless from and against (i) claims of third parties in connection with
the subject and the execution of this Escrow Agreement and (ii) any costs, including legal costs, reasonably incurred by Escrow Agent as a result of (non) fulfillment of the obligations of this Escrow Agreement by Philips and/or Supplier.

  

	3.8	Escrow Agent shall not deliver Escrow Items, modifications, updated versions, new releases, lists or containers to any other person than those specified in Clauses 3.5
and 3.6 unless forced by law. Furthermore Escrow Agent shall be allowed to inform its auditor, the Dutch Government and its agents and judicial authorities of this Escrow Agreement if so required. 

 

 -3- 

 Article 4 

Right to use 
  

	4.1	When one of the events mentioned in Clause 3.6 has occurred, Philips and its Affiliated Companies will have the non-exclusive, perpectual,worldwide, irrevocable right
to use the Escrow Items free of charge, solely for the purposes set forth in the Agreement, provided Philips has informed Supplier in writing that it intends to use the Escrow Items. 

Article 5 

Assistance to Philips 
  

	5.1	 Furthermore, upon
Philips2 request Supplier’s engineer(s) listed at the
Escrow Agent, shall assist Philips during at least three (3) man-mouths in the handover of such know how needed for the engineers appointed by Philips to get fully acquainted with the Escrow Items in terms of engineering method, upgrading,
porting, interfacing, maintenance, etc Said assistance shall, in view of the particular triggering event, be against compensation of travel and lodging expenses and working hours as agreed upon between the parties on a case to case basis.

  

	5.2	The aforesaid undertaking to assist Philips shall be considered by the named Supplier engineer(s) as a best effort understanding towards Philips, for which purpose
Supplier shall use its best endeavors to cause its engineers to provide Philips the above-mentioned assistance. 	 

  

	5.3	 Supplier hereby irrevocably waives its right for enforcement of any non-compete and related penalty provision(s) of its employment agreement(s) with
said Supplier engineer(s), if any, during the fulfillment of his/her (their) aforesaid assistance and Supplier warrants that it shall not prevent or otherwise frustrate said undertaking in any way. It is expressly accepted by Supplier that this
provision will also be enforceable by each individual aforementioned engineers, whether under their employment agreement or not. 

 

 -4- 

 Article 6 

Continuity 
  

	6.1	Escrow Agent is aware that Supplier represented and warranted under the Agreement that the Escrow items will remain in escrow under the Escrow Agreement during the term
of the Agreement, unless Philips has permitted the Escrow Agent to return the Escrow Items sooner pursuant to Clause 3.5 hereof. Supplier waives its rights for dissolution of the Escrow Agreement and it represents and warrants that it shall not
prevent or otherwise frustrate the Escrow Agent’s undertaking to make available to Philips the Escrow items during the aforementioned period in the events as mentioned in Clause 3.6. In view thereof Escrow Agent shall not release the Escrow
Items to supplier, save where this Escrow Agreement provides otherwise. 

 Article 7 

Costs 
  

	7.1	Philips shall bear all costs and expenses which Escrow Agent may incur in the implementation of this Escrow Agreement, such as costs of deposits, cost of checking of
boxes and lists, correspondence costs, costs of administration and handling of the Escrow items. 

  

	7.2	Supplier shall bear costs and expenses which Supplier itself incurs in the implementation of this Escrow Agreement such as costs of transportation of the Escrow items
to the Escrow Agent and the like. 

 Article 8 

Title 
  

	8.1	Escrow Agent and Philips recognize that any copyrights Supplier may have regarding the Escrow Items are vested and remain in Supplier. Ownership of the carriers bearing
the Escrow Items shall vest in the Escrow Agent, it being clearly understood and agreed that the use of such carriers shall be subject to the restrictions laid down in this Escrow Agreement. Under this Escrow Agreement neither Escrow Agent nor
Philips are entitled to make copies of Escrow Items, or to allow others to make copies, nor to allow any third party access to Escrow Items, nor to divulge any information contained in Escrow Items to any third party, except in accordance with
Clauses 3.8 and Article 4. 

  

 -5- 

 Article 9 

Addresses 
 The
parties’ addresses, for implementation of this Escrow Agreement shall be as follows: 
 If to Supplier: 

Bitstream Inc. 

Attn. Legal Department 

215 First Street 

Cambridge, Massachusetts 02142 

USA 
 If to Philips: 

Philips Business Electronics B.V. 

Attn. Purchasing Department Philips Consumer Electronics B.V., 

Building SWA 6 

P.O. Box 80002 

5600 JB Eindhoven 

The Netherlands 
 If to Escrow
Agent: 
 *** 

Stadhuisplein 4 

5611 HA Eindhoven 

The Netherlands 
 or such other
addresses as a party may inform each of the others in writing. 
 Article 10 

Applicable Law and disputes 
  

	10.1	This Escrow Agreement, its validity, its interpretation and performance shall be governed by the laws of The Netherlands 

 

	10.2	All disputes arising out of or in connection with the interpretation or execution of this Escrow Agreement shall be finally settled by the competent courts of The
Netherlands. 

  

 - 6 - 

 IN WITNESS WHEREOF THIS ESCROW AGREEMENT HAS BEEN SIGNED BY THE PARTIES IN A MANNER DULY BINDING UPON THEM.

  

									
	PHILIPS BUSINESS ELECTRONICS B.V.	 		 	BITSTREAM INC.
			
	 ***
	 		 	 ***

	Name:	 	***	 		 	Name:	 	***
	Title:	 	Gen Mgr to the Dig. Receivers	 		 	Title:	 	V.P. Gen Mgr
	Date:	 	23-12-97	 		 	Date:	 	12-04-97
				
	ESCROW AGENT	 		 		 	
				
	  
	 		 		 	
	Name:	 	***	 		 		 	
	Title:	 	Civil Law Notary	 		 		 	
				
	  
	 		 		 	
	Name:	 	***	 		 		 	
	Title:	 	Civil Law Notary	 		 		 	

  

 - 7 - 

 FOR DISCUSSION PURPOSES ONLY 

Addendum 

to the *** License Agreement dated 6 October 1997 

between 

Philips Digital Networks B.V. 

(formerly known as Philips Business Electronics B.V.) 

and 

Bitstream, Inc. 

I. Reference is made to the definition and list of Lisensed Products in the *** License Agreement dated 6 October 1997 (“the Agreement”).

 Bitstream hereby grants Licensee (including its Affiliates as defined in the Agreement) a non-transferable, non-exclusive, nolimited license
to use, reproduce and display in perpetuity the most recent version of the ***. 
 The license is granted for a consideration of a license fee
equal to *** due and paid by Licensee to Bitstream in January 2001 and of which payment Bitstream hereby acknowledges receipt. All other terms and conditions will be as set forth in the Agreement. 

II. Bitstream represents to Licensee as follows: 
  

	(i)	that it has received the consent for the license granted hereby from the Royal National Institute of the Blind (“RNIB); 

 

	(ii)	that the license fee set forth above is the lowest price offered to any DVB member for a paid-up license for the most recent version of the ***;

	(iii)	that the *** licensed hereunder has been designed in accordance with the MHP specifications. 

IN WITNESS WHEREOF this Addendum has been drawn up and signed by both parties in duplicate in a manner duly binding upon them. 

 

									
	Philips Digital Networks B.V.	 		 	Bitstream, Inc.
	(formerly known as “Philips Business Electronics B.V.”)	 		 	
				
	 ***
	 		 		 	 ***

	Name:	 	***	 		 	Name:	 	***
	Title:	 	Chief Financial Officer	 		 	Title:	 	President and Chief Operations Officer

 WR-1055-1 

20 March 2001 

 Fifth Addendum 

to Bitstream Inc. 

License Agreement 

of October 6, 1997 

This Fifth Addendum (the “Addendum”) is entered into and effective this 30th day of November 2004 by and between
Bitstream Inc. of 245 First Street, Cambridge, Massachusetts 02142 (“Bitstream”) and Philips Semiconductors (and affiliates) of Prof. Holstlaan 4, WDB-p, 5656 AA Eindhoven. The Netherlands (as defined in the Agreement referenced
below), (“License”). Capitalized terms used herein and not otherwise defined herein have the meanings set forth in the Agreement. 

WHEREAS, Bitstream and Licensee are parties to a written agreement of October 6, 1997, entitled Bitstream Inc. ***
License Agreement, as amended (the “Agreement”), whereby Bitstream granted Licensee certain rights, including the right to license and sublicense certain Bitstream products; and now Licensee desires to license additional products.

 NOW, THEREFORE, the parties agree as follows: 

The following Exhibits, attached hereto, are hereby incorporated to and expressly made a part of the Agreement. 

Exhibit A-5: Outline(s) 

Exhibit B-6: Outline(s) 

This Fifth Addendum shall become part of the Agreement and the Agreement, as amended, shall remain in full force and effect. 

Purchase Orders: 
 (Please check one)

      Licensee provides purchase orders in the ordinary course of its business and a signed purchase order
is attached to the executed copy of this Agreement. 
     . 

IN WITNESS WHEREOF, the parties have duly caused this Fifth Addendum to be signed as of the date First set
forth, by their respective authorized representatives. 
  

							
	Bitstream Inc.:	 	Philips Semiconductors:
				
	 By:
	 	 ***
	 	By:	 	 ***

	 Print Name:
	 	 ***
	 	Print Name:	 	 ***

	 Title:
	 	 CEO
	 	Title:	 	 ***

	 Date:
	 	 1/31/05
	 	Date:	 	 17-01-2005

 Exhibit A-5 

to Bitstream Inc. 

License Agreement 

Outline(s) 

This Exhibit A-5 is effective as of the
30th day of November 2004 and is part of and shall be
governed by the Bitstream Inc. *** License Agreement made effective on October 6, 1997 by and between Bitstream Inc. (“Bitstream”) and Philips Digital Networks B.V. (“Licensee”). The Licensed Products listed
below are licensed to Licensee under the terms and conditions of the Agreement, and in consideration of Licensee’s agreement to pay the access fees and royalties set forth in Exhibit B-6 of this Fifth Addendum for those Licensed Products
purchased at Licensee’s option by Licensee: 
  An Outline in the PC TrueType font file format, Bitstream widths, and the Windows
character set, in each of the following typeface styles: 
  

			
	 Typeface
	  	 ID Number

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

 Any additional Outlines ordered by
Licensee will be governed by the terms and conditions of this Agreement. 
  

							
	Bitstream Inc.:	 	Philips Semiconductors:
				
	 By:
	 	 ***
	 	By:	 	 ***

	 Print Name:
	 	 ***
	 	Print Name:	 	 ***

	 Title:
	 	 CEO
	 	Title:	 	 ***

	 Date:
	 	 1/31/05
	 	Date:	 	 17-01-2005

 

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors
 Fifth
Addendum
	  	2	  	

 Exhibit B-6 

to Bitstream Inc. 

License Agreement 

Payment-Outline(s) 

Volume Discount Royalty Payment Plan 

This Exhibit B-6 is effective as of the
30th day of November 2004 and is part of and shall be
governed by the Bitstream Inc. *** License Agreement made effective on October 6, 1997 by and between Bitstream Inc. (“Bitstream”) and Philips Digital Networks B.V. (“Licensee”). 

1. Access Fees 
 The one-time access fee
due according to Section 3 of the Agreement is *** per outline, for a total of ***, which shall be due and payable to Bitstream within sixty (60) days after Licensee’s receipt of Bitstream’s invoice to be sent to Licensee after
delivery of the Outlines described in Exhibit A-5. 
 2. Shipping Charges 

Licensee shall be responsible for the payment of the freight charges for the Outlines described in Exhibit A-5 that is shipped to Licensee. 

3. Bitstream Royalty Rates 
 a. In
addition to the access fees set forth at Section 1 of this Exhibit B-6, and in consideration of the right to Sublicense the Outlines described in Exhibit A-5, Licensee shall pay royalties to Bitstream at the rates and on the terms as shall be
agreed by the parties in writing prior to shipment of the Outlines by Licensee. 
 4. Royalty Reporting 

a. Licensee shall furnish written royalty reports to Bitstream within thirty (30) days after the end of each calendar quarter indicating the number
of Systems incorporating Typefaces, Outlines and Derivative Works thereof and shipped to Licensee’s customer or OEM during the preceding calendar quarter. A royalty report form is attached hereto as Attachment 1. 

b. Licensee shall maintain invoices and other documentation necessary to substantiate the number of royalty payments due under this Agreement for a
period of three (3) years from the date the applicable royalty report was sent to Bitstream. Bitstream or its authorized representative may, at Bitstream’s expense, and upon providing Licensee reasonable notice, inspect such documentation
at Licensee’s location at all reasonable times that are approved by Licensee during Licensee’s normal business hours. A royalty period may not be inspected more than once. If a royalty period has not been inspected within said three
(3) years, then the royalty reports rendered for such period shall be deemed acceptable to Bitstream. 
  

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors
 Fifth
Addendum
	  	3	  	

 Bitstream agrees to keep all information obtained during any royalty report inspection confidential pursuant
to Section 6 of the Agreement and agrees that such information shall not be used for any purpose except to verify and collect the royalties due under this Agreement. 

 

							
	Bitstream Inc.:	 	Philips Semiconductors:
				
	 By:
	  	 ***
	 	By:	 	 ***

	 Print Name:
	  	 ***
	 	Print Name:	 	 ***

	 Title:
	  	 CEO
	 	Title:	 	 ***

	 Date:
	  	 1/31/05
	 	Date:	 	 17-01-2005

 

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors
 Fifth
Addendum
	  	4	  	

 Attachment 1 

to Bitstream Inc. 

License Agreement 

Royalty Report Form 

For: 
 Billing Address/Tel/Fax/Contact

  

					
	 Royalty Accounting Contact
	 	  
	 	
			
	 Royalty Report for Quarter Ended
	 	  
	 	

 Please fill out the table below for each Licensed Product sublicensed during the past quarter: 

 

							
	 Licensed Product(s)
	 	 Total Units Shipped

this Quarter
	 	 Royalty Rate
	 	 Royalty Due (USD)

		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
	 Total Royalty Payment due Bitstream this quarter
	 	

 I certify that the above royalty report is complete and accurate: 

 

			
	  
	 	  

	Authorized Signature	 	Date

 Remit with payment to Licensor within thirty
(30) days after end of quarter. 
 For wire transfers please remit payment to: 

 

			
	 International and domestic wire:
	 	 Domestic Lock Box:

	 Citizens Bank of Rhode Island

One Citizens Drive, Riverside, RI 02915

ABA# 011500120

Account# ***

SWIFT# CTZIUS33
	 	 Bitstream Inc.
 P.O. Box 5-0077

 Woburn, MA 01815-0077

  

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors
 Fifth
Addendum
	  	5	  	

 Six Addendum 

to Bitstream Inc. 

License Agreement 

of October 6, 1997 

This Sixth Addendum (the “Addendum”) is entered into and effective this 29th day of April 2005 by and between Bitstream
Inc. of 245 First Street, Cambridge, Massachusetts 02142 (“Bitstream”) and Philips Semiconductors B.V. (and affiliates) of Prof. Holsilaan 4, WDB-p, 5656 AA Eindhoven. The Netherlands (as defined in the Agreement referenced below),
(“Licensee”). Capitalized terms used herein and not otherwise defined herein have the meanings set forth in the Agreement. 

WHEREAS, Bitstream and Licensee are parties to a written agreement of October 6, 1997, entitled Bitstream Inc. *** License
Agreement, as amended (the “Agreement”), whereby Bitstream granted Licensee certain rights, including the right to license and sublicense certain Bitstream products; and now Licensee desires to license additional products.

 NOW, THEREFORE, the parties agree as follows: 

The following Exhibits, attached hereto, are hereby incorporated to and expressly made a part of the Agreement. 

Exhibit A-6: Outline(s) 

Exhibit B-7: Outline (s) 

This Sixth Addendum shall become part of the Agreement and the Agreement, as amended, shall remain in full force and effect. 

Purchase Orders: 
 (Please check one)

 _ Licensee provides purchase orders in the ordinary course of its business and a signed purchase order is attached to the executed
copy of this Agreement. 
 _ Licensee does not issue purchase orders for this type of agreement. 

IN WITNESS WHEREOF, the parties have duly caused this Third Addendum to be signed as of the date first set forth, by their respective authorized
representatives. 
  

							
	Bitstream Inc.:	 	Philips Semiconductors B.V.
	By:	 	 ***
	 	By:	 	 ***

	Print Name:	 	 ***
	 	Print Name:	 	 ***

	Title:	 	 President and CEO
	 	Title:	 	 General MANAGER BC DTS

	Date:	 	 May 5, 2005
	 	Date:	 	 26-04-2005

 Exhibit A-6 

to Bitstream Inc. 

License Agreement 

Outline(s) 
 This Exhibit
A-6 is effective as of the 29th day of April 2005 and is part of and shall be governed by the Bitstream Inc. License Agreement made effective on October 6, 1997 by and between Bitstream Inc. (“Bitstream”) and Philips
Semiconductors B.V. (and affilliates) (“Licensee”). The Licensed Products listed below are licensed to Licensee under the terms and conditions of the Agreement, and in consideration of Licensee’s agreement to pay the access
fees and royalties set forth in Exhibit B-7 of this Sixth Addendum for those Licensed Products purchased at Licensee’s option by Licensee: 

An Outline in the PC TrueType font file format, Bitstream widths, and the Windows character set, in each of the following typeface styles: 

			
	 Typeface
	 	 ID Number

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

  Any additional Outlines ordered
by Licensee will be governed by the terms and conditions of this Agreement. 
  

					
	Bitstream Inc.:	 		 	Philips Semiconductors B.V.:
			
	By:***                           
                                         
                      	 		 	By:
***                                        
                                         
         
			
	Print Name:***                         
                                         
          	 		 	Print Name:
***                                        
                                    
			
	Title: President and
CEO                                        
                    	 		 	Title: GM BC
DTS                                         
                             
			
	Date: May 5,
2005                                         
                             	 		 	Date:
26-04-2005                                       
                                   

 

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors B.V.

Sixth Addendum
	 	2	 	

 Exhibit B-7 

to Bitstream Inc. 

License Agreement 

Payment—Outline(s) 

Volume Discount Royalty Payment Plan 

This Exhibit B-7 is effective as of the 29th day of April 2005 and is part of and shall be governed by the Bitstream Inc. *** License Agreement made
effective on October 6, 1997 by and between Bitstream Inc. (“Bitstream”) and Philips Semiconductors B.V. (and affiliates) (“Licensee”). 

1. Access Fees 
 The one-time access
fee due according to Section 3 of the Agreement for each Outline described in Exhibit A-6, which shall be due and payable to Bitstream within thirty (30) days of delivery of each Outline, is as follows: None. 

2. Shipping Charges 
 Licensee shall be
responsible for the payment of the freight charges for the Outlines described in Exhibit A-6 that is shipped to Licensee. 
 3. Bitstream
Royalty Rates 
 a. In addition to the access fees set forth at Section 1 of this Exhibit B-7, and in consideration of the right to
sublicense Outlines, Licensee shall pay royalties to Bitstream at the rate(s) set forth below: 
  

			
	 Outline Product(s)
	 	 Royalty Rates(s) (USD)

	Outlines described in Exhibit A-6 hereto	 	30,000 shipments at *** per set for a total of ***

b. A royalty is due for each copy of an Outline, or Derivative Work thereof, sublicensed by Licensee or its Sublicensee for use on or in a single System.
One “Outline” equals one version of a typeface style (e.g., roman, italic, bold, bold italic). If an Outline is used to generate Bitmaps, then a royalty is due for each set of Bitmaps in one Typeface (in any number of sizes or resolutions)
that is sublicensed. 
 c. The Outline Products licensed shall be limited to use within a specific System product line or for support of a
specific System, or both. 
 d. In consideration of the license granted in the Agreement, and of the royalty rate(s) granted above, Licensee
agrees to sublicense or transfer Outlines only as an inseparable unit with Systems. 
 4. Payment of Bitstream Royalties 

a. In consideration of the royalty rate(s) granted in Section 3 above, Licensee agrees to pay the total guaranteed royalties in the amount of ***
with payment due to Bitstream sixty (60) days after execution of this Addendumon. 
  

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors B.V.

Sixth Addendum
	 	3	 	

 If any payment or part of a payment set forth above is not paid when due, then after any applicable cure
periods specified in this Agreement, the balance shall become due immediately in full. 
 b. The “Royalty
Period”, during which Licensee may sublicense Outlines under the royalty payment plan set forth above, begins on April 29, 2005 and ends on April 29, 2008. Licensee’s obligation to pay the total royalties set forth above shall
not be diminished if Licensee fails to grant all authorized sublicenses before the end of the Royalty Period. If Licensee grants all authorized sublicenses before the end of the Royalty Period, any unpaid balance of the total royalties shall become
due and payable immediately. 
 c. At the expiration of the Royalty Period, or if Licensee has granted all authorized sublicenses, Licensee may
grant additional sublicenses at Bitstream’s then-current royalty rate for individual sublicenses (Bitstream’s Pay-As-You-Go Plan) or may negotiate with Bitstream to enter into a new contract. 

d. In the event that Licensee fails to make any of the payments when due, as set forth in 4(a) above, the total amount of the unpaid balance shall become
immediately due and payable to Bitstream. 
 5. Sublicense Fees 

In the event that Licensee sublicenses an Outline to another Licensee, with the right to copy the Outline, a sublicense fee shall be due in an amount
equal to the access fee paid by the Licensee to Bitstream for the Outline. Sublicense fees shall be due for copies of Outlines, or their Derivative Works, sublicensed with Systems for further licensing by Sublicensee. 

 

					
			
	Bitstream Inc.:	 		 	Philips Semiconductors B.V.:
			
	By:
                                    ***    
                                        
	 		 	By:
                                    ***    
                                      
			
	Print Name:
                            ***            
                          	 		 	Print Name:
                        ***                
                       
			
	Title: President and
CEO                                         
          	 		 	Title: GM BC
DTS                                         
                  
			
	Date: May 2, 2005
                                         
                   	 		 	Date:
26-04-2005                                       
                       

  

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors B.V.

Sixth Addendum
	 	4	 	

 Eighth Addendum 

to Bitstream Inc. 

License Agreement 

of October 6, 1997 

This Eighth Addendum (the “Addendum”) is entered into and effective this
       1    day of January 2006 by and between Bitstream Inc. of 245 First Street, Cambridge, Massachusetts 02142 (“Bitstream”) and Philips Semiconductors B.V.
(and affiliates) of High Tech Campus 60, 5656 AG Eindhoven, The Netherlands (“Licensee”). Capitalized terms used herein and not otherwise defined herein have the meanings set forth in the Agreement. 

WHEREAS, Bitstream and Licensee are parties to a written agreement of October 6, 1997, entitled Bitstream Inc. *** License Agreement, as
amended (the “Agreement”), whereby Bitstream granted Licensee certain rights, including the right to license and sublicense certain Bitstream products; and now the parties desire to amend certain terms of the Agreement as set forth
herein. 
 NOW, THEREFORE, the parties agree as follows: 

The following Exhibits, attached hereto, are hereby incorporated to and expressly made a part of the Agreement. 

Exhibit A-8: Outline(s) 

Exhibit A-9: Font Scaling Software 

Exhibit B-9: Payment – Outline(s) 

Exhibit B-10: Payment – Font Scaling Software 

This Eighth Addendum shall become part of the Agreement and the Agreement, as amended, shall remain in full force and effect. 

Purchase Orders: 
 (Please
check one) 
  

	x	Licensee provides quarterly purchase orders in connection with the royalty reports provided by Licensee. 

 

	 ̈	Licensee does not issue purchase orders for this type of agreement. 

IN WITNESS WHEREOF, the parties have duly caused this Third Addendum to be signed as of the date
first set forth, by their respective authorized representatives. 
  

			
	Bitstream Inc.:	 	Philips Semiconductors B.V.:
		
	By:
                                    ***    
                                         
 	 	By:
                                        
***                                         
   
		
	Print Name:
                        ***                
                            	 	Print Name:
                            ***            
                              
		
	Title: President & CEO
                                         
              	 	Title: SVP & General
Counsel                                        
      
		
	Date:
6/9/06                                        
                                  	 	Date: 02-06-2006
                                         
                         

 Exhibit A-8 

to Bitstream Inc. 

License 
 Agreement

 Outline(s) 

This Exhibit A-8 is effective as of the        1    day of January 2006 and is part
of and shall be governed by the Bitstream Inc. *** License Agreement made effective on October 6, 1997 by and between Bitstream Inc. (“Bitstream”) and Philips Semiconductors B.V. (and affiliates)
(“Licensee”). The Licensed Products listed below are licensed to Licensee under the terms and conditions of the Agreement, and in consideration of Licensee’s agreement to pay the access fees and royalties set
forth in Exhibit B-9 of this Eighth Addendum for those Licensed Products purchased at Licensee’s option by Licensee: 
 An
Outline in the PC True Type font file format, Bitstream widths, and the Windows character set, in each of the following typeface styles: 
  

			
	 Typeface
	 	 ID Number

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

 Any additional Outline ordered and/or
sub-licensed by Licensee will be governed by the terms and conditions of this Eighth Addendum. 
 Bitstream warrants and represents that the
Typefaces listed above and used in connection with the font scaling software licensed in Exhibit A-9 below and including *** fully meets the requirements as set forth in the EIA-708-B standard and/or FCC00-259 mandate. 

					
		
	Bitstream Inc.:	 	Philips Semiconductors B.V.:
			
	By:
                                ***        
                                       	 		 	By:
                                         
                                         
  
			
	Print Name:
                            ***            
                         	 		 	Print Name:
                                         
                             
			
	Title: President &
CEO                                         
             	 		 	Title:
                                         
                                        

			
	Date:
6/9/06                                        
                                 	 		 	Date:
                                         
                                        

  

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors

B.V. Eighth Addendum
	 	2	 	

 Exhibit A-9 

to Bitstream Inc. 

License 
 Agreement

 Font Scaling Software 

This Exhibit A-9 is effective as of the        1    day of January 2006 and is part of and
shall be governed by the License Agreement made effective on October 6, 1997 by and between Bitstream Inc. (“Bitstream”) and Philips Semiconductors B.V. (and affiliates) (“Licensee”). The
Licensed Products listed below are licensed to Licensee under the terms and conditions of the Agreement, and in consideration of Licensee’s agreement to pay the access fees and royalties set forth in Exhibit B-10 of this Eighth
Addendum for those Licensed Products purchased at Licensee’s option by Licensee: 
  

	 	•	 	 Font Scaling Software in the following version(s): 

*** (and earlier versions) 
  

					
			
	Bitstream Inc.:	 		 	Philips Semiconductors B.V.:
			
	By:                             
           ***                              
                    	 		 	By:                            
                                         
                            
			
	Print Name:                           
     ***                                    
        	 		 	Print Name:                          
                                         
                 
			
	Title: President &
CEO                                        
                        	 		 	Title:                            
                                         
                         
			
	Date:
6/9/06                                       
                                         
  	 		 	Date:                            
                                         
                         

 

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors

B.V. Eighth Addendum
	 	3	 	

 Exhibit B-9 

to Bitstream Inc. 

License 
 Agreement

 Payment—Outline(s) 

Volume Discount Royalty Payment Plan 

This Exhibit B-9 is effective as of the        1    day of January 2006 and is part of and
shall be governed by the Bitstream Inc. *** License Agreement made effective on October 6, 1997 by and between Bitstream Inc. (“Bitstream”) and Philips Semiconductors B.V. (and affiliates)
(“Licensee”). 
 1. Access Fees 

The one-time access fee due according to Section 3 of the Agreement for each Outline described in Exhibit A-8, which shall be due and
payable to Bitstream within thirty (30) days of delivery of each Outline, is as follows: None. 
 2. Bitstream Royalty Rates

 a. In addition to the access fees set forth at Section 1 of this Exhibit B-9, and in consideration of the right to
sublicense Outlines, Licensee shall pay royalties to Bitstream at the rate(s) set forth below: 
  

			
	 Outline Product(s)
	 	 Royalty Rate(s) (USD)

	 Outlines described in Exhibit A-8 hereto
	 	 *** per sublicense for entire shipment, per set

4. Payment of Bitstream Royalties 
 a.
Royalties are due and payable to Bitstream as they are incurred on a calendar quarterly basis, as set forth in Section 6(a) of this Exhibit below. 

b. In consideration of the license granted in the Agreement, and of the royalty rate(s) granted above, Licensee agrees to sublicense or transfer Outlines
only in connection with the sale of Systems. 
  

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors

B.V. Eighth Addendum
	 	4	 	

 5. Royalty Reporting 

a. Licensee shall furnish written royalty reports including Purchase Orders and sent such royalty reports and Purchase Orders to Bitstream within thirty
(30) days after the end of each calendar quarter indicating the type and quantity of Outlines, and Derivative Works including font scaling software transferred or sublicensed during the preceding calendar quarter. Bitstream may invoice Licensee for
the amounts depicted on the Purchase Order(s) and payment will be done within thirty (30) days after having received such invoice by Licensee. A royalty report form is attached hereto as Attachment 1 to record each Outline sublicensed, the
number of sublicensed copies and the applicable royalty rate(s). 
 b. Licensee shall maintain invoices and other documentation reasonably
necessary to substantiate the number of royalty payments due under this Agreement for a period of three years from the date the applicable royalty report was sent to Bitstream. Bitstream or its authorized representative may, at Bitstream’s
expense, inspect such invoices with two (2) months prior notice to Licensee and only once per calendar year during normal business hours. A royalty period may not be inspected more than once. If a royalty period has not been inspected within said
three (3) years, then the royalty reports rendered for such period shall be deemed acceptable to Bitstream. 
 Following Article 6 of the
Agreement, Bitstream agrees to keep all Information obtained during any royalty report inspection confidential and agrees that such information shall not be used for any purpose except to verify and collect the royalties due under this Agreement.

  

			
	 Bitstream Inc.:
	 	Philips Semiconductors B.V.:
		
	By:                             
               ***                          
                       	 	By:                            
                                         
                           
		
	Print Name:
                            ***            
                                      	 	Print Name:
                                         
                                       

		
	Title: President &
CEO                                         
                         	 	Title:
                                         
                                         
          
		
	Date:
6/9/06                                        
                                         
    	 	Date:
                                         
                                         
          

  

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors

B.V. Eighth Addendum
	 	5	 	

 Exhibit B-10 

to Bitstream Inc. 

License 
 Agreement

 Payment—Font Scaling Software 

This Exhibit B-10 is effective as of the        1    day of January 2006 and is part
of and shall be governed by the License Agreement made effective on October 6, 1997 by and between Bitstream Inc. (“Bitstream”) and Philips Semiconductors B.V. (“Licensee”). 

1. Access Fees 
 The access fee
due according to Section 3 of the Agreement for Font Scaling Software, which shall be due and payable to Bitstream within thirty (30) days of delivery of the Font Scaling Software, is as follows: None. 

3. Royalty Rates For Font Scaling Software 
  

			
	 Font Scaling Software
	 	
Royalty Rate(s) (USD)

	Font Scaling Software described in
 Exhibit A-9
hereto
	 	*** per sublicense

  

					
			
	Bitstream Inc.: 	 		 	Philips Semiconductors B.V.:
			
	By:
                                ***        
                                       	 		 	By:
                                         
                                         
   
			
	Print Name:                     ***     
                                        
	 		 	Print Name:                           
                                         
    
			
	Title: President & CEO                       
                              	 		 	Title:
                                         
                                         

			
	Date:
6/9/06                                        
                               	 		 	Date:
                                         
                                        

  

					
	 Bitstream Inc. OEM/ISV License Agreement

Philips Semiconductors

B.V. Eighth Addendum
	 	6	 	

 Attachment 1 

to Bitstream Inc. 

License 
 Agreement

 Royalty Report 

Form 
 For:

 Billing Address/Tel/Fax/Contact 
  

							
	 Royalty Accounting Contact
	  	  
	  	
			
	 Royalty Report for Quarter Ended
	  	  
	  	

 Please fill out the table below for each Licensed Product sublicensed during the past quarter: 

 

							
	 Licensed Product(s)
	  	 Total Units Shipped this
Quarter
	  	 Royalty Rate
	  	 Royalty Due (USD)

		  		  		  	
		  		  		  	
		  		  		  	

  

	
	Total Royalty Payment due Bitstream this quarter

I certify that the above royalty report is complete and accurate: 
  

					
	 	 		  	
		
	                           
                              Authorized Signature	  	Date

 Remit with Purchase Order to Bitstream within thirty
(30) days after end of quarter. 
 For wire transfers please remit payment to: 

 

			
	 International and domestic wire:
	  	 Domestic Lock Box:

	 Citizens Bank of Rhode Island

One Citizens Drive, Riverside, RI

02915
 ABA# 011500120

Account# ***
	  	 Bitstream Inc.
 P.O.
Box
 845818
 Boston, MA
02284-5818

	SWIFT# CTZIUS33	  	

  

					
	 Bitstream Inc. OEM/ISV License Agreement
	 	7	 	

 Agreement number CPO-ICT-185 

OEM Agreement 

for *** 
 (1) Cabot
Communications Limited 
 (2) Philips Semiconductors B.V.     

Dated 30 July 2003 
  

			
		 	Cabot Communications Limited
		 	Verona House
		 	Filwood Road
		 	Bristol BS163RY
		 	United Kingdom
	TEL	 	+44(0)117 958 4232
	FAX	 	+44(0)117 958 4168
	WEB	 	www.cabot.co.uk

 Contents 

 

					
	1.	  	Definitions and interpretation	 	
	2.	  	Adapting of the Software	 	4
	3.	  	Adaptation Fees	 	5
	4.	  	Manufacture and exploitation licences	 	6
	5.	  	Support and Maintenance Services	 	7
	6.	  	Upgrades to the Adapted Software	 	9
	7.	  	Other Support Services	 	10
	8.	  	Royalties and Payments	 	11
	9.	  	Taxes	 	11
	10.	  	Intellectual Property	 	12
	11.	  	Warranties and liability	 	14
	12.	  	Term, termination, and remedies	 	15
	13.	  	Making of Copies	 	15
	14.	  	Responsibilities of Licensee	 	16
	15.	  	Force majeure	 	16
	16.	  	Risk of loss	 	16
	17.	  	Assignment and sub-licensing	 	16
	18.	  	Confidential Information	 	16
	19.	  	Notices	 	17
	20.	  	Applicable Law	 	18
	21.	  	Effect Of Waiver	 	19
	22.	  	Export controls	 	19
	23.	  	Severability	 	19
	24.	  	Entire Agreement	 	19
	25.	  	Third Parties	 	19
	26.	  	Joint and several	 	19
	27.	  	Public Relations	 	19
	Schedule 1	 	21
	Schedule 2	 	22
	Schedule 3	 	23
	Schedule 4	 	24
	Schedule 5	 	26
	Schedule 5	 	26
	Schedule 6	 	28

 This Agreement is made the 30th day of July 2003 

Between: 
  

	(1)	Cabot Communications Limited (a company registered in England with no.02817269) whose registered office and principal trading address is Verona House, Filwood Road,
Bristol, BS16 3RY United Kingdom (“Cabot”) 

 and 

 

	(2)	Philips Philips Semiconductors B.V. (a company registered in Eindhoven, The Netherlands with no.70621 ) whose registered office and principal trading address is
Noord-Brabantlaan 2, 5651 LX Eindhoven, The Netherlands. (“Licensee”) 

 Background: 

 

	(A)	Cabot has developed a library of standard software products, providing interactive digital TV solutions and is in the business of developing and marketing that
Software. 

  

	(B)	The Licensee is in the business of manufacturing (or development of) Licensed Products. Once manufactured, the Licensed Products are going to be distributed to OEM
Customers for integration into Digital TV Devices. 

  

	(C)	The Licensee wishes to acquire a licence to enable the Licensee to integrate and/or embed Cabots Software into its Licensed Products and wishes to obtain Cabot’s
assistance with the porting of that Software. 

  

	(D)	Cabot agrees to provide that assistance and to grant a non-exclusive, non-transferable, object code only licence to integrate and/or embed the Software into Licensed
Products and to manufacture and distribute Licensed Products to OEM Customers, wholesalers and retailers subject to the terms of this Agreement. 

It is agreed as follows: 
  

	1.	Definitions and interpretation 

  

	1.1	In this Agreement, unless the context otherwise requires, the following words have the following meanings: 

 

			
	Adapted Software	  	The Software in an adapted form created in accordance with clause 2
		
	Adaptation Fees	  	The Adaptation Fees referred to in Schedule 3
		
	Adaptation Plan	  	The plan to be agreed under clause 2.2 detailing the configuration of the Licensed Products and the adaptation required to enable the Software to be used with those Licensed
Products
		
	Adaptation Services	  	Those services provided by Cabot to the Licensee, under clause 2.3 to adapt the Software including DTG, DVB stream and OAD testing.

 

					
		  	1	  	30 July 2003

			
		
	Affiliates	  	any person which directly or indirectly Controls, is Controlled by or is under common Control with the party concerned, but only so long as such a Control exists
		
	Agreement	  	this Agreement (including any schedule or annexure to it and any document in agreed form);
		
	 Confidential

Information
	  	all identifiable methodology, know-how, experience, data, tables and all other technical or commercial information relating to either party, its business, products, customers, and
which is obtained under this Agreement by one party and/or its Affiliates whether in human or machine readable form, and where the Licensee is the Receiving Party (defined below) shall include (without limitation) the Software and the Adapted
Software, the Adaptation Plan and the Project Plan
		
	Control	  	the power to secure that the affairs of that person are conducted in accordance with the wishes of that person either through the holding of shares, the power to appoint and remove
directors, contract, or otherwise, and “Controlled” shall be construed accordingly
		
	Digital TV Devices	  	Digital television receiver devices manufactured by Philips Consumer Electronics based on Philips Semiconductors *** platform
		
	End Users	  	Customers who purchase for their own use Digital TV Devices incorporating both the Licensed Products and the Adapted Software
		
	Error	  	a failure of the Adapted Software to materially conform to the specifications included in the Adaptation Plan
		
	Intellectual Property	  	all copyright, design rights, database rights, trade marks, service marks, domain name rights, patents, know-how and all other intellectual property rights, whether registered,
registerable or not and both present and future
		
	Licence	  	The licences to the Adapted Software granted under clauses 2.1 and 4 of this Agreement
		
	Licensed Product	  	Such of the Licensee’s digital television receiver devices the configuration of which is to be agreed and set out in the Adaptation Plan

 

					
		  	2	  	30 July 2003

			
		
	 OEM Customers
	  	OEM customers of the Licensee who have entered into a licence for the Adapted Software in accordance with clause 4.2
		
	 Project Plan
	  	The plan to be agreed under clause 2.2 detailing the estimated timetable for the adaptation and delivery of the Adapted Software in accordance with this Agreement
		
	 Royalties
	  	The Royalty referred to Schedule 3
		
	 Royalty Advance
	  	the royalty advance referred to in Schedule 3
		
	 Sale, Sell, Sold
	  	The disposal of any interest in the Licensed Product by way of sale, hire, lease, licence, sub-licence or transfer
		
	 Software
	  	The such versions of Cabot’s standard software libraries in a form existing at the date of this Agreement in object code version only as specified in Schedule
1
		
	 Software Licence Fee
	  	The software licence fee referred to in Schedule 3 
		
	 Territory
	  	World-wide
		
	 Updates
	  	Error corrections, bug fixes and such interim releases of the standard Cabot Software libraries as may be officially released by Cabot to its customers receiving Support and
Maintenance Services. For the avoidance of doubt, Updates shall not include new versions or developments.
		
	 Upgrade
	  	functional enhancements, new features and/or versions of the standard Cabot Software libraries
		
	 Working Days
	  	Monday to Friday in every week, excluding Bank and Public holidays in the United Kingdom

 

	1.2	The headings in this Agreement are for convenience only and shall not affect their interpretation. 

 

	1.3	In this Agreement any reference to a person shall be construed as a reference to any person, firm, company, corporation, government, state or agency of a state or any
association or partnership (whether or not having separate legal personality) or one or more of the foregoing and references to the singular shall include the plural and vice versa. 

 

					
		  	3	  	30 July 2003

			
	2.	  	Adapting of the Software
		
	2.1	  	Cabot hereby grants the Licensee a non-exclusive,non-transferable ,object code only licence, for the duration of the Agreement, to adapt the Software in object code only version
so as to allow the Software to be embedded into such of the Licensed Products as may be set out in the Adaptation Plan.
		
	2.2	  	As soon as practicable following the date of this Agreement, Cabot and the Licensee shall use their best endeavours, negotiating in good faith, to agree an Adaptation Plan and a
Project Plan. If they are unable to come to an agreement on the Adaptation Plan and Project Plan within 30 days of the date of this Agreement either Cabot or the Licensee may, within a period of a further seven days, terminate this Agreement by
written notice to the other without liability.
		
	2.3	  	Once agreed, Cabot shall provide the Licensee with assistance with the adaptation of the Software so as to allow of the Software to be embedded in the Licensed Products in
accordance with the Adaptation Plan and the Project Plan and the terms of this Agreement. In the event of any conflict between the terms of this Agreement and the terms of Adaptation Plan and/or the Project Plan, then this Agreement shall prevail.
The Adaptation Services will be provided on a non-exclusive basis.
		
	2.4	  	The Licensee acknowledges that, save as expressly set out in the Adaptation Plan, the Licensee shall be responsible for the adaptation of the Software so as to ensure
compatibility with the Licensed Products.
		
	2.5	  	Cabot shall only be required to provide the Adaptation Services in respect of the current versions of the Licensed Products identified in Schedule 2. Unless otherwise agreed, any
other adaptation or other consultancy services provided by Cabot at the request of the Licensee shall be subject to Cabot’s standard fees applying at that time and the terms of this Agreement.
		
	2.6	  	The Licensee shall provide such information and assistance as Cabot may reasonably require, at the Licensee’s cost, to enable Cabot to comply with its obligations in this
Agreement and the Adaptation Plan and the Project Plan, including (without limitation) information concerning the configuration and design of the Licensed Products and the Licensee shall carry out such other tasks as may be referred to in the
Adaptation Plan and the Project Plan.
		
	2.7	  	Without prejudice to the generality of clause 2.6, the Licensee will make available at its own expense computer systems and appropriate personnel to the extent necessary for
Cabot to perform the Adaptation Services. Licensee will ensure that any Licensee computer system will be fully functional, accompanied by complete and accurate user documentation and that Licensee will make technical support available in a timely
manner as is reasonably required.
		
	2.8	  	Subject to clauses 2.6 and 2.7 Cabot shall use its reasonable endeavours to provide the Adaptation Services in accordance with this Agreement by the dates specified in the
Project Plan, provided that time for completion of those services and delivery of the Adapted Software shall not be of the essence.

  

					
		 	4	  	30 July 2003

					
		
	 2.9.
	  	In the event that any obligation of Cabot to adapt the Software is delayed as a result of an act or omission of the Licensee then, without prejudice to Cabot’s
other rights and remedies:
			
		  	2.9.1	  	the milestone specified in the Project Plan associated with the relevant obligation(s) (and the dates similarly associated with any subsequent obligation(s) specified in the
Project Plan ) shall be amended by a period of time equal to the period of such delay caused by the Licensee (or other such period as the parties agree); and
			
		  	2.9.2	  	the Licensee shall reimburse Cabot for all costs which are reasonably incurred by Cabot as a direct result of such delay, provided that Cabot uses its reasonable efforts to
mitigate such costs.
		
	 2.10
	  	 On completion of the Adaptation Services , Cabot shall make the Adapted Software available to The Licensee. The Licensee

 shall be entitled to conduct such Acceptance Tests as it reasonably considers appropriate on the Adapted Software, for the purposes of
determining the Adapted Software’s compliance with the Adaptation Plan.

		
	 2.11
	  	Cabot will not be liable for any costs or expense associated with any Acceptance Tests conducted by or on behalf of the Licensee (including, but without limitation, any
Digital Test Centre test costs).
		
	 2.12
	  	The Licensee shall immediately notify Cabot in writing of the scheduled date, time and location of any proposed Acceptance Tests, and any authorised representatives of
Cabot shall be entitled to attend the Acceptance Tests for the purpose for verifying any results.
		
	 2.13
	  	The Licensee shall notify Cabot in writing of any material failure of the Adapted Software to comply with the Adaptation Plan within 60 Working Days of the Adapted
Software being made available to the Licensee, such notice specifying the defect and the manner in which it fails so to comply, failing which the Licensee shall be deemed to have accepted the Adapted Software. In circumstances where such failure
arises solely out of Cabot’s failure to provide the Adaptation Services in accordance with the Adaptation plan, following receipt of any such notice, Cabot shall remedy the Adapted Software so as to ensure that it complies with the Adaptation
Plan at its own cost, and this process shall be repeated until the Adapted Software is accepted ( or is deemed to be accepted) by the Licensee. The Licensee acknowledge that Cabot shall not be responsible for any failure of the Adapted Software
arising out of any adaptation carried out by the Licensee.
		
	 3.
	  	Adaptation Fee
		
	 3.1
	  	In consideration of the adaptation of the Software referred to in clause 2, the Licensee shall pay to Cabot the Adaptation Fees in accordance with Schedule
3.
		
	 3.2
	  	The Adaptation Fee will be paid by the Licensee in two instalments, the first instalment will be *** and paid within 30 days of the date of this Agreement , the second
will be *** and paid within 30 days of acceptance (or deemed acceptance) by the Licensee of the Adapted Software in accordance with clause 2.12, provided that in each case Cabot has submitted an invoice.

 

					
		 	5	  	30 July 2003

			
	 4.
	  	Manufacture and exploitation licences
		
	 4.1
	  	Cabot hereby grants the following licences to the Licensee for the duration of this Agreement subject to the terms of this Agreement and for the following purposes
only:-

 Design and manufacture of Licensed Products incorporating the Adapted Software 

 

					
	 4.1.1
	  	a non-exclusive, non-transferable , object code only licence to use the Adapted Software to manufacture Licensed Products incorporating the Adapted Software,
and
		
	 4.1.2
	  	a non-exclusive, non-transferable, object code only licence to authorise a third party (“Third Party Manufacturer”) to manufacture Licensed Products
on behalf of the Licensee (but not on its own behalf) provided that:-
			
		  	(a)	  	the Licensee enters into a written agreement with the Third Party Manufacturer ensuring equivalent levels of protection for the Adapted Software, the Adaptation Plan, and the
copyright, design right, patents or other intellectual property rights and Confidential Information of Cabot as is provided by this Agreement;
			
		  	(b)	  	the Licensee sends to Cabot a copy of the agreement with the Third Party Manufacturer or written notice specifying that such an agreement has been completed within 14 days of
entering into that agreement as evidence of the Licensee’s compliance with clause 4.1.2(a);
			
		  	(c)	  	the Licensee will ensure that the Third party Manufacturer complies with the terms of the agreement referred to in clause 4.1.2 (a); and
			
		  	(d)	  	the Licensee’s agreement with the Third Party Manufacture terminates on the date of termination or expiry of this Agreement, only to the extent that such agreement relates
to the Licensed Products incorporating the Adapted Software;
			
	and	  		  	
		
	 4.1.3
	  	a non-exclusive, non-transferable, object code only licence to use the Adapted Software to market, distribute and Sell Licensed Products in which the Adapted Software
has been previously installed, integrated and/or embedded under clauses 4.1.1 and 4.1.2 to wholesalers, distributors and retailers in the Territory and to support and maintain such Licensed Products; and

Bundling of the Adapted Software 
  

			
	 4.1.4
	  	subject to clause 4.2, a non-exclusive, non-transferable, object code only licence to use the Adapted Software to market, distribute and Sell Licensed

 

					
		 	6	  	30 July 2003

 Products in conjunction with the Adapted Software to OEM Customers in the Territory to
enable OEM Customers to install, integrate and/or embed Licensed Products and the Adapted Software together into Digital TV Devices and to support and maintain such Licensed Products. 

 

			
	4.2	  	The Licensee shall not allow copies of the Adapted Software to be used by or supplied to the OEM Customers until the OEM Customers have first entered into a written licence
agreement with the Licensee and/or Cabot permitting the OEM Customers to install, integrate and\or embed the Adapted Software together with the Licensed Products into Digital TV Devices only and ensuring the equivalent protection for Cabot’s
Confidential Information and Intellectual Property as provided by this Agreement (“the OEM Customer Licence”) and provided that the Licensee informs Cabot in writing of any breach or suspected breach of the OEM Customer Licence
immediately on it becoming aware of the same and the Licensee ensures that the OEM Customers comply with the terms of those licences. For the Avoidance of doubt, the Licensee shall ensure it does not allow OEM Customers to use the Adapted Software
other than in conjunction with the Licensee’s Licensed Products and the OEM Customer’s own Digital TV Devices.
		
	4.3	  	The Licensee may make such copies of the Adapted Software as are necessary for the purposes of excersing the rights granted to the Licensee under the clause 4.1 above, provided
that all such copies shall be subject to the terms of this Agreement.
		
	4.4	  	The Licensee may not sub-licence the rights granted under this Agreement or otherwise allow any third parties to use the Adapted Software, except in accordance with clauses 4.1
and 4.2.
		
	5.	  	Support and Maintenance Services
		
	5.1	  	Cabot shall use its reasonable efforts to provide the Support and Maintenance Services in accordance with the Schedule 4 only in respect of Adapted Software used by End Users
within the countries specified in Schedule 4. Where no such country is specified, Cabot shall only be obliged to provide the Support and Maintenance Services in respect of Adapted Software used by End Users within the United
Kingdom.
		
	5.2	  	As part of the Support and Maintenance Services, Cabot will use its reasonable efforts to provide Error corrections for the Adaptive Software in accordance with Schedule 4 only
in respect of Errors caused solely as a result of Cabot’s failure to provide the Adaptation Services in the manner required by this Agreement.
		
	5.3	  	Cabot shall not be obliged to provide the Support and Maintenance Services:

  

					
		 	      5.3.1
	  	where defects or errors result from any modifications of the Adapted Software made by the Licensee of its own volition;
			
		 	      5.3.2
	  	in respect of any version of the Adapted Software except (i) the then current version of the Adapted Software, and (ii) the immediately preceding version of the Adapted Software
for a period of six (6) months after it is first superseded;

  

					
		 	7	  	30 July 2003

					
		 	 5.3.3
	 	where the Adapted Software is used with Licensed Products other than the current versions referred to in Schedule 2;
			
		 	5.3.4	 	where any error in the Licensed Products not caused by the Adapted Software;
			
		 	5.3.5	 	where any error in the Licensed Products or Adapted Software not caused solely any failure Cabot to provide the Adaptation Services in accordance with this
Agreement;
			
		 	5.3.6	 	where any error caused or contributed to by the Licensed Product’s failure to comply with the configuration and specification detailed in the Adaptation
Plan;
			
		 	5.3.7	 	where any failure by the Licensee (or any person on the Licensee’s behalf) to properly install the Adapted Software on the Licensed Product;
			
		 	5.3.8	 	where any error caused or contributed to by the failure of the Licensed Product to be used properly and in accordance with instructions for use; and/or
			
		 	5.3.9	 	during any period in respect of which the Support and Maintenance Fee has not been paid by the Licensee.

 

			
	 5.4
	 	In consideration of the Support and Maintenance Services, the Licensee shall pay Cabot the Support and Maintenance Fees in accordance with Schedule 4.
		
	 5.5
	 	In the event that Cabot incurs additional costs for specialised equipment required for providing the Support and Maintenance Services in a specific country in the Territory, the
Licensee shall reimburse Cabot’s reasonable costs within 30 days of the date of invoice, provided that Cabot provides the Licensee with receipts for such expenses.
		
	 5.6
	 	Cabot shall make an additional charge in accordance with its reasonable standard scale or charges for the time being in force for any services provided by the Cabot at the
request of the Licensee, but which do not fall within the Support and Maintenance Services by virtue of any of the exclusions referred to in clause 5.2 above or otherwise.
		
	 5.7
	 	The Support and Maintenance Services shall be provided for a period of 12 months from the date of this Agreement and thereafter for further periods of 12 months provided that:

  

					
		 	5.7.1	 	the then applicable Support and Maintenance Fees notified by Cabot shall apply to such further period of 12 months which shall be paid by the Licensee no later that thirty days
prior to the end of the preceding 12 month period or seven days prior to the end of the warranty period as defined in clause 11.5; and
			
		 	5.7.2	 	the Licensee may serve Cabot with not less than 60 days prior notice of intention not to renew the Support and Maintenance Services, such notice to expire on the end of the 12
month period.

  

					
		 	8	  	30 July 2003

			
	5.8	  	Cabot reserves the right to discontinue the Support and Maintenance Services should Cabot, in its sole discretion, determine that continued support for any Adapted Software is no
longer economically practicable and will give Customer at least three (3) months prior written notice of any such discontinuance of Support and Maintenance Services and will refund to the Customer any unused Support and Maintenance Services Fees
that the Licensee may have prepaid with respect to the Adapted Software.
		
	6.	  	Upgrades to the Adapted Software
		
	6.1	  	From time to time Cabot may make produce Upgrades to its standard Software libraries. Cabot shall notify the Licensee of any Upgrades to its standard Software libraries forming
part of the Adapted Software that become available during any period in respect of which the Licensee has paid the Support and Maintenance Fees.
		
	6.2	  	If the Licensee wishes to acquire the Upgrades, it shall notify Cabot in writing to that effect.
		
	6.3	  	Cabot will carry out Adaptation Services in respect of the Upgrades provided that the parties first agree an Adaptation Plan, Project Plan and fee for that adaptation. Once that
adaptation has been completed Cabot shall provide the Upgrades to the Licensee. The Licensee may make the Upgrades available to End Users through the Licensees own resources at the Licensees own cost.
		
	6.4	  	The terms of this Agreement shall apply to the Upgrades.
		
	7.	  	Other Support Services
		
	7.1	  	Other Support Services designated as optional may be ordered at the discretion of the licensee during the term of this agreement.
		
	7.2	  	In consideration of the Other Support Services as ordered, the Licensee shall pay Cabot the Other Support Services Fees in accordance with Schedule 5
		
	7.3	  	Cabot shall use its reasonable efforts to provide Other Support Services in accordance with Schedule 5 and the Service Plan
		
	7.4	  	As soon as practicable following the date of this Agreement or if the particular service is optional, when it is ordered by the licensee, Cabot and the Licensee shall use their
best endeavours, negotiating in good faith, to agree a Service Plan.
		
	7.5	  	The following general terms and conditions shall apply to all Other Support Services provided hereunder:
		
	7.6	  	Cabot will use commercially reasonable efforts to provide all Other Support Services.
		
	7.7	  	Licensee will make available at its own expense computer systems and appropriate personnel to the extent necessary for Cabot to perform the Other Services. Licensee will ensure
that any Licensee computer systems will be fully functional, accompanied by complete and accurate user documentation and that Licensee will make technical support available in a timely manner as is reasonably required. The parties agree that any
Service Plan delivery date or work requirement will be adjusted for any delay in

  

					
		 	9	  	30 July 2003

			
		
		  	performance of the Other Support Services that results from failure of Licensee computer systems to perform inadequate documentation, insufficient technical support or failure to
make timely payments under this Agreement and that any costs and expenses incurred as a result of such delay shall be borne by Licensee.
		
	7.8	  	Licensee will pay or reimburse Cabot for all reasonable expenses incurred to provide the Other Services, including, without limitation, expenses related to travel and the
acquisition of any hardware or software systems specific to the Service Plan
		
	7.9	  	Cabot reserves the right to discontinue Other Services should Cabot, in its sole discretion, determine the Service is no longer economically practicable and will give Customer at
least three (3) months prior written notice of any such discontinuance of the Service.
		
	8.	  	Royalties and Payments
		
	8.1	  	In consideration of the Licence, the Licensee shall pay the software Licence Fee, Royalty Advance and the Royalties to Cabot in accordance with Schedule 3.
		
	8.2	  	The Licensee shall pay the Software Licence Fee and Royalty Advance to Cabot by
31st December 2004 Once paid, the Royalty Advance may be
offset by and in favour of the Licensee against future Royalties due under clause 8.1
		
	8.3	  	The Royalties shall apply for a period of 24 months from the date of this Agreement. Thereafter the Royalties shall increase with effect from that date and on the 31 December in
each subsequent year by an amount equal to the percentage increase in the UK Central Statistical Offices Monthly Digest of Statistics: General Index of Retail prices: Table 18.1 – Monthly Digest over the immediately preceding 12
months.
		
	8.4	  	The Licensee shall within 30 days of the end of each three month period send to Cabot a statement showing the aggregate number of Licensed Products Sold by or on behalf of the
Licensee and any its Affiliates during that period incorporating and in conjunction with the Adapted Software.
		
	8.5	  	The Licensee shall remit the Royalties to Cabot within 14 days of the date of Cabot’s invoice.
		
	8.6	  	The Licensee shall keep separate records and accurate accounts sufficient to calculate the Royalties and shall permit the duly appointed representatives of Cabot to inspect all
such records and accounts and take copies of them at all reasonable times, upon five Working Days written notification. Any audit or inspection and all information learned as a result thereof will be subject to confidentiality obligations as set
forth in section 16. The use of such information shall be solely for the purpose of audit and in connection with any dispute arising from such audit.
		
	8.7	  	Cabot may engage an auditor of its choice to verify the information provided to Cabot in relation to the Royalties (“Independent Auditor”) on terms which require
the Independent Auditor to produce a report which certifies whether the sums reported by the Licensee under clause 8.4 were accurate, but which also requires the Independent

 

					
		 	10	  	30 July 2003

					
		  	Auditor to keep the Confidential Information of the Licensee confidential. On the request of Cabot during the period of 90 days after the end of any 12 month period
the Licensee shall give the Independent Auditor access to the records and accounts referred to in clause 8.6 to enable such persons to certify the accuracy of the information submitted by it in respect of that year pursuant to clause 8.4. If the
results of the report certify that the sums reported by the Licensee under cause 8.4 were accurate to within plus or minus 10% (ten percent), the reasonable costs of the Independent Auditor incurred in the preparation of their report shall be paid
by Cabot. In all other circumstances the costs of the auditor’s report shall be paid by the Licensee.
		
	8.8	  	The Licensee shall reimburse Cabot’s reasonable travel and subsistence expenses properly incurred by Cabot in carrying out the services this Agreement within 30
days of the date of invoice, provided Cabot provides the Licensee with receipts for such expenses.
		
	8.9	  	Without prejudice to any other remedy which Cabot may have, if any sums due under this Agreement are not received by Cabot in cleared funds by the due dates referred
to Cabot may:
			
		  	8.9.1	  	charge interest on the overdue amount at the rate 4% above the base rate of the Bank of England for the time being from the due date until the overdue sums have been received by
Cabot in cleared funds; and/or
			
		  	8.9.2	  	terminate this Agreement by 30 days notice in writing to the Licensee in the event of a failure to make any three payments due under this Agreement by or on the due dates in any
period of six calendar months.
		
	8.10	  	Save in so far otherwise expressly provided all amounts stated in this agreement are expressed exclusive of value added tax (or other applicable sales tax that may be
deemed payable under applicable law) and any such sales tax arising in respect of any supply made hereunder shall be paid in the issue of a valid tax invoice. However for withholding tax section 9.2 shall apply.
		
	8.11	  	The Licensee shall make all payments to Cabot without any deduction or set off other than such amount (if any) as it is required to deduct by law.
		
	9.	  	Taxes
		
	9.1	  	The Licensee shall pay, or reimburse Cabot for as the case may be, any taxes, expect for withholding tax, subject to section 9.25, however designed, arising from or
based upon the fees due under this Agreement.
		
	9.2	  	Cabot shall use reasonable efforts to obtain a tax exemption certificate (or the like) from the tax authorities in which the Licensee resides to entitle the Licensee
to claim an exemption from taxes imposed on and to be paid by the Licensee according to the laws of that territory. In the event Cabot is given relief from withholding tax, no income or other tax of any kind shall be deducted from the amount of any
license fee and\ or royalties payable under this agreement. As long as the License has not received a copy of the aforementioned tax exemption certificate, the Licensee may deduct such taxes from the amount owed Cabot and shall pay them on behalf of
Cabot and shall upon Cabot request submit an official tax receipt issued by relevant tax authorities evidencing the payment.

  

					
		 	11	  	30 July 2003

					
		
	10.	  	Intellectual Property
		
	10.1	  	Cabot and the Licensee agree that all Intellectual Property in the Software, Adapted Software and Updates shall be owned exclusively by Cabot. Further the
Intellectual Property in the Adaptation Plan and the Project Plan will also be exclusively owned by Cabot, subject to any pre-existing Intellectual Property of the Licensee specifically incorporated within those documents.
		
	10.2	  	The Licensee shall provide such available information and assistance as Cabot may reasonably require for the purpose of confirming Cabot’s ownership of the items
specified in clause 10.1.
		
	10.3	  	The Licensee shall not copy, adapt, develop, modify, disassemble, reverse engineer or otherwise use the Software, Adapted Software or Upgraded Software other than as
expressly set out in clause 4 above. There are no implied licenses granted under this Agreement, and as between Cabot and the Licensee, all rights, save for those granted under clause 4, shall remain exclusively with Cabot.
		
	10.4	  	The Licensee shall immediately inform Cabot in writing as soon as it becomes aware of any infringement or suspected infringement of Cabot’s Intellectual Property
in the Software, Adapted Software or Upgraded Software.
		
	11.	  	Warranties and liability
		
	11.1	  	The Licensee warrants and undertakes to Cabot that the information provided by the Licensee under clauses 2.6 and 2.7 shall be true and accurate in all material
respects and, so far as it is aware, shall not breach the Intellectual Property of any third party.
		
	11.2	  	Cabot warrants to the Licensee that, so far as it is aware, the use by the License of the elements of the Adapted Software produced by Cabot as part of the Adaptation
Services shall not breach the Intellectual Property of any third party.
		
	11.3	  	The Licensee acknowledges that the Adapted Software is derived from Cabot’s standard Software libraries, and other than as set out in the Adaptation Plan and in
clauses 10.4 and 10.5, Cabot shall have no liability in respect of any failure of the Adapted Software to be suitable for use with Licensed Products.
		
	11.4	  	Cabot warrants that the Adaptation Services shall be provided using reasonable skill and care.
		
	11.5	  	Cabot warrants and undertakes to the Licensee that if the Adapted Software in a Licensed Product is demonstrated to Cabot’s reasonable satisfaction within 180
days from the delivery of the Adapted Software, to materially fail to comply with the Adaptation Plan solely as a result of Cabot’s failure to provide the Adaptation Services in the manner required by this Agreement, Cabot will correct such
defect or (at its sole option) replace such copy of the Adapted Software free of charge provided that:-
		
		  	11.5.1   the Licensed Product complies with the configuration and specification detailed in the Adaptation Plan;

 

					
		 	12	  	30 July 2003

					
		 	11.5.2	  	the Adapted Software has been properly installed on the Licensed Product;
			
		 	11.5.3	  	the Licensed Product has been used at all times properly and in accordance with instructions for use;
			
		 	11.5.4	  	no alteration, modification or addition has been made to the Adapted Software without Cabot’s prior written consent;
			
		 	11.5.5	  	the alleged error was not caused by the adaptation carried out by the Licensee; and
			
		 	11.5.6	  	the alleged error has been notified to Cabot within the warranty period specified in this clause.
		
	11.6	 	Each claim under clause 11.5 shall be sent in writing to Cabot, specifying the nature of the defect. Upon receipt of such written claim, the Licensee shall grant
access to the Licensed Product in question to Cabot or its agent or representative and to remove it, to enable such person to test or to inspect the Licensed Product and the Adapted Software at its premises.
		
	11.7	 	Any Adapted Software replaced or corrected under this warranty shall be sent by Cabot to the Licensee carriage prepaid.
		
	11.8	 	The remedies specified in clause 11.5 shall be Cabot’s only liability for any defect, error or other failure of the Software and Adapted
Software.
		
	11.9	 	Except as otherwise provided in clause 11, Cabot makes no other representations or warranties and all conditions warranties terms and undertakings express or implied
statutory or otherwise in respect of the Software or the Adapted Software and the provision of any services under this Agreement are hereby excluded, including (without limitation) any warranties as to quality or fitness of the Adapted Software for
any particular purpose.
		
	11.10	 	Cabot does not warrant or undertake that the Software or the Adapted Software will be free of viruses, disabling devices or errors.
		
	11.11	 	Cabot shall not be liable to the Licensee by reason of any negligence or any other tortious action or any representation (unless fraudulent), or any implied warranty,
condition or other term, or under the express terms of this Agreements, for:
			
		 	11.11.1	  	any loss of anticipated revenues; or
			
		 	11.11.2	  	any loss of anticipated savings; or
			
		 	11.11.3	  	loss of profits; or
			
		 	11.11.4	  	loss of business opportunities; or
			
		 	11.11.5	  	loss of goodwill; or
			
		 	11.11.6	  	damage to reputation; or

  

					
		 	13	  	30 July 2003

	 	11.11.7	any indirect, special or consequential loss or damage, costs, expenses or other such claims for compensation whatsoever 

 

	  	(whether caused by the negligence of Cabot, its employees or agents or otherwise) which arises out of or in connection with this Agreement. 

 

	11.12	The entire liability of Cabot in respect of any and all claims made against it by the Licensee by reason of any negligence or any other tortious action or any
representation (unless fraudulent), or any implied warranty, condition or other term, or under the express terms of this Agreement shall not exceed the amount of the Adaptation Fees received by Cabot. 

 

	11.13	Notwithstanding anything to the contrary in this Agreement, Cabot’s liability to the Licensee: 

 

	 	11.13.1	for death or personal injury caused by the negligence of Cabot, its employees, agents or subcontractors; or 

 

	 	11.13.2	for damage suffered by the Licensee as a result of any breach by Cabot of the condition as to title or the warranty as to quiet possession implied by Section 12 of
the Sale of Goods Act 1979 or Section 2 of the Supply of Goods and Services Act 1982; or 

  

	 	11.13.3	for fraud (including, but not limited to, fraudulent misrepresentation) 

  

	 	is not limited (but nothing in this clause confers any right or remedy upon the Licensee to which it would not otherwise be entitled). 

 

	11.14	For the avoidance of doubt, unless otherwise stated in the Adaptation Plan, the Adaptation Services shall be provided on the assumption that the Adapted Software is for
use in conjunction with the Licensed Products in the United Kingdom only. 

  

	12.	Term, termination, and remedies 

  

	12.1	This Agreement will take effect on the date of this Agreement and shall continue unless or until terminated under clauses 12.2, 12.3 or 12.4. 

 

	12.2	Either party may terminate this Agreement at any time by serving at least six (6) months prior written notice to the other party to that effect, without liability.

  

	12.3	Either party (“the Innocent Party”) may terminate this Agreement without liability, by prior notice in writing at any time if the other (“the
Defaulting Party”):- 

  

	 	12.3.1	commits any material breach of this Agreement and (if capable of remedy) fails to remedy such breach within 30 days after being given written notice to do so; or

  

	 	12.3.2	makes any voluntary arrangement with its creditors, or becomes subject to an administration order or goes into liquidation (other than for the purposes of amalgamation
or reconstruction), or an encumbrancer takes possession, or a receiver is appointed, over any of its property or assets, or 

  

			
	 14
	  	30 July 2003

	 	 	anything analogous to any of the foregoing occurs to the Defaulting Party under the law of any jurisdiction. 

 

	12.4	Cabot may terminate this Agreement without liability, by prior notice in writing at any time in the event control of the Licensee shall be transferred to others than
those exercising control at the time of signing of this Agreement or in the event assets or more than 15% of the Licensee are transferred to a Competitor of Cabot and if Cabot has reasons to believe that this is contrary to its justified business
interests. 

  

	12.5	The rights and remedies of Cabot and the Licensee set forth in this Agreement are not exclusive and are in addition to any other rights and remedies provided by
statute, at law, or in equity. 

  

	12.6	Notwithstanding termination of this Agreement, the Licensee shall be entitled to support and maintain Licensed Products previously sold to wholesalers, retailers or OEM
Customers or thereafter sold by OEM Customers in the Territory in accordance with clause 4.1, but for the avoidance of doubt shall not be entitled to install integrate and/or embed the Adapted Software into additional Licensed Products or market,
distribute and Sell Licensed Products incorporating or in conjunction with the Adapted Software under 2.1 or 4.1 accordingly all the provisions of this Agreement shall continue to apply in respect of that continued use only. For the avoidance of
doubt, any sub-licences granted to the Licensee’s OEM Customers hereunder prior to termination shall remain unaffected. 

  

	12.7	The rights to terminate this Agreement given by this clause 121 shall not prejudice any other right or remedy of either party in respect of the breach concerned (if
any) or any other breach. Clauses 9, 8, 9, 10 and 18 shall survive termination of this Agreement. 

  

	13.	Marking of copies 

  

	 	The Licensee will reproduce and maintain on all physical copies of the Adapted Software in its possession or control all trademark, copyright markings or legends that
appear on the Adapted Software furnished to the Licensee by Cabot or that are prescribed by Cabot by notice from time to time, and no other such markings or legends. 

 

	14.	Responsibilities of Licensee 

  

	14.1	The Licensee is responsible exclusively for the supervision, management, and control of the making and use of copies of Adapted Software provided for in this Agreement,
and its use of any of them. 

  

	14.2	The Licensee acknowledges the claims to rights in intellectual and tangible property set forth in clause 10 and the Licence will take appropriate measures to prevent
breaches of them by the Licensee, its representatives, OEM Customers, or End Users including, without limitation, the restriction of copies of the Adapted Software only to employees who need access to the same in order to exercise the rights granted
under the Licence and the requirement of non-transfer and confidentiality agreements from those persons with respect to the Adapted Software, so as to ensure equivalent levels 

 

			
	 15
	  	30 July 2003

	 	of confidentiality and protection of Intellectual Property as are provided by this Agreement. 

 

	14.3	Immediately on termination of this Agreement, the Licensee shall destroy all copies of Adapted Software in the Licensee’ possession or under its control, except
that:- 

  

	 	14.3.1	the Licensee may retain such copies of the Adapted Software as are necessary for the purposes of supporting and maintaining Licensed Products previously sold to End
Users in the Territory in accordance with clauses 12.6 and 4.1.2; and 

  

	 	14.3.2	upon prior written authorisation from Cabot the Licensee may retain a single copy of the Adapted Software solely for archival purposes. 

 

	14.4	The Licensee shall keep records of, and account for, the Adapted Software and all copies made. Cabot may examine and take copies of those records at reasonable times.

  

	15.	Force majeure 

  

	15.1	No party hereto shall be liable for any breach of its obligations hereunder resulting from causes beyond its reasonable control including but not limited to fires
strikes (of its own or other employees) lockouts insurrection or riots acts of terrorism war embargoes or delays in transportation inability to obtain supplies and raw materials requirements or regulations of any civil or military authority (an
“Event of Force Majeure”). 

  

	15.2	Each of the parties hereto agrees to give notice forthwith to the other upon becoming aware of an Event of Force Majeure such notice to contain details of the
circumstances giving rise to the Event of Force Majeure. 

  

	15.3	If a default due to an Event of Force Majeure shall continue for more than three months then the party not in default shall be entitled to terminate this agreement. No
party shall have any liability to the other in respect of the termination of this agreement as a result of an Event of Force Majeure. 

  

	16.	Risk of loss 

  

	 	The Licensee is responsible for the loss of, or damage to, copies of the Adapted Software. Cabot may furnish replacements of the Adapted Software for its then current
charges and during the term of this Agreement, but not later than the fifth (5) anniversary of the date of this Agreement. 

  

	17.	Assignment and sub-licensing 

  

	17.1	Subject to clause 17.2, the Licensee shall not assign or sub-licence any rights or obligations granted under this Agreement, or any of the Licences in whole or in part
to any third party. 

  

	17.2	This Agreement is binding upon, and enures to the benefit of, the successors and permitted assigns of the parties. 

 

			
	 16
	  	30 July 2003

	18.	Confidential Information 

  

	18.1	Any party receiving the Confidential Information (“the Receiving Party”) undertakes to the party disclosing Confidential Information (“the
Disclosing Party”) that:- 

  

	 	18.1.1	it will not at any time disclose or reveal that Confidential Information to any person other than such of those directors, employees or professional advisors of the
Receiving Party who it is necessary should receive and consider the same for the purposes of this Agreement (“Permitted Recipient”); 

  

	 	18.1.2	it and any Permitted Recipient will use that Confidential Information solely for the purposes necessary to comply with its obligations or exercise its rights under this
Agreement; 

  

	 	18.1.3	it and each Permitted Recipient will treat and safeguard as private and confidential all that Confidential Information; 

 

	 	18.1.4	it will ensure that each Permitted Recipient to whom Confidential Information is to be disclosed is made aware of and shall observe the terms of this clause 17 as if
that person had given the undertakings contained in this clause 17 directly; 

  

	 	18.1.5	it will immediately upon written request by the Disclosing Party deliver to the Disclosing Party a list of all individuals to whom the Confidential Information has been
disclosed; 

  

	 	18.1.6	it will indemnify the Disclosing Party against all loss or damage which may arise from the unauthorized disclosure or use of the Confidential Information or any part of
it in breach of this Agreement by them or by any person to whom the Confidential Information has been disclosed by them. 

  

	18.2	The provisions of clause 18.1 shall not apply to the whole or any part of the Confidential Information to the extent that it is:- 

 

	 	18.2.1	in the public domain other than as a result of breach of any obligation of confidentiality; 

 

	 	18.2.2	required to be disclosed by law or any governmental organization 

  

	 	18.2.3	was known to the Receiving Party, prior to disclosure as demonstrated by documentary evidence, or 

 

	 	18.2.4	becomes known to the Receiving Party from a source other than the Disclosing Party legally entitled to disclose and without breach of any obligations of
confidentiality, or 

  

	 	18.2.5	was independently developed by the Receiving Party without the benefit of data or Confidential Information received from the Disclosing Party; which independent
development the Receiving Party shall have the burden of establishing by clear and convincing written evidence, or 

  

			
	 17
	  	30 July 2003

	 	18.2.6	was disclosed after written approval of the Disclosing Party. 

  

	19.	Notices 

  

	19.1	Any notice required or permitted under this Agreement shall be in Writing and shall be sent to by first class post, hand delivery or fax. 

 

	19.2	Subject to clause 19.3 below any such notice consent or other document shall be deemed to have been duly received: 

 

	 	19.2.1	If despatched by fax - 24 hours from the time of the despatch; or 

  

	 	19.2.2	If despatched by prepaid post - 3 days from the time of posting to the relevant party; or 

 

	 	19.2.3	If despatched by hand delivery - at time of actual delivery. 

  

	19.3	Unless otherwise notified in writing for the purpose of this clause the postal addresses of the parties are:- 

 

			
	 Cabot
	  	 Licensee:

	 Cabot Communications Ltd
	  	As set out in Schedule 6
	 Verona House
	  	
	 Filwood Road
	  	
	 Bristol
	  	
	 BS16 3RY
	  	
	 Attention:
	  	
	 Fax: +44 (0)117 958 4168
	  	

  

	19.4	In proving service by post it will be sufficient unless any relevant part of the postal service is affected by industrial action to prove that the envelope containing
the notice was duly stamped addressed and posted to the addresses specified in clause 18.3 above. In proving service by fax it shall be sufficient to prove that it was properly addressed and dispatched to the numbers or address specified in clause
18.3 above. 

  

	20.	Applicable Law 

  

	 	This Agreement shall be governed by, subject to, and construed according to the laws of the England. The parties irrevocably agree that this Agreement shall be subject
to the non-exclusive jurisdiction of the English courts. 

  

			
	 18
	  	30 July 2003

	21.	Effect Of Waiver 

  

	 	The waiver or failure of either party to exercise in any respect any right provided for in this Agreement shall not be deemed a waiver of any further or future right
hereunder. 

  

	22.	Export controls 

  

	 	Cabot believes that the Adapted Software it furnishes to the Licensee constitutes “technical data” for purposes of export control regulations of the United
Kingdom. The Licensee shall comply with all applicable UK export embargoes under any applicable law relating to the Adapted Software. 

  

	23.	Severability 

  

	 	If any provision of this agreement is held to be unenforceable, it will be deemed to be omitted from this agreement, and the remaining provisions will remain in full
force and effect unless that omission causes the agreement to fail of its principle purpose. 

  

	24.	Entire Agreement 

  

	24.1	This Agreement constitutes the entire agreement and understanding between the parties with respect to its subject matter and the terms of this Agreement shall supersede
any previous agreements. 

  

	24.2	Each of the parties acknowledge and agree that in entering into this Agreement it does not rely on and shall have no remedy in respect of any statement representation
warranty term condition or understanding (whether negligently or innocently made, whether express or implied) of any person (whether a party to this Agreement or not) other than as may be expressly set out in this Agreement.

  

	24.3	Nothing in this Agreement shall operate to limit or exclude any liability for fraud. 

 

	25.	Third Parties 

  

	 	Nothing in this Agreement is intended to confer any benefit on any third party (whether referred to by name, class, description or otherwise) or any right to enforce a
term contained in this Agreement. 

  

	26.	Joint and several 

  

	 	Where there are two or more parties to this Agreement as “Licensee” their liability under this Agreement shall be joint and several. 

 

	27.	Public Relations 

  

	 	The parties shall draft and issue a press release announcing the signing of this Agreement at a mutually agreed date and each party may include the information included
in such press release in subsequent advertisements, press releases or other publications without the other party’s prior written consent; provided, that such party includes proper attribution of the other party’s name. Following the
issuance of such 

  

			
	 19
	  	30 July 2003

	 	press release, Cabot may also refer to Licensee as Cabot’s customer in Cabot’s sales and marketing materials and presentations. 

 

			
	 20
	  	30 July 2003

 Schedule 1 

The Software 
 The
following products developed by Cabot in a form existing at the date of this Agreement in object code version only:- 
 TBC CABOT –
DELETE AS APPROPRIATE 
 1. *** 

2. *** 
 3. *** 

4. *** 
  

			
	 21
	  	30 July 2003

 Schedule 2 

The Licensed Products 

<<[List here the Licensed Products of the Licensee with which Cabot’s Software may be used]>> <<Philips SC can fill this
part>> 
  

			
	 22
	  	30 July 2003

 Schedule 3 

Adaptation Fees, Software License Fee, the Advance and Royalties 

Adaptation Fees 
 *** 

Software Licence Fee and The Royalty Advance 

*** including *** royalties for *** and *** 

<<[    ]>> 

The Royalties 
  

											
	  	  	 Number of Licensed Products Sold incorporating
that Adapted Software under clause 4.1.2 and L Products Sold in
conjunction with that Adapted Software under 4.1.3, by or on behalf of the Licen Affiliates, whether during or after
termination of this Agreement

	 Adapted
Software
	  	 1-49,999
    
	  	50,000-99,999	  	100,000-
249,999	  	250,000-
499,999	  	500,000-
999,999
	 (Mercator)
	  	***	  	***	  	***	  	***	  	***
	 Eclipse and

Callisto Systems
	  	***	  	***	  	***	  	***	  	***

 Royalty notes: a unit cost is charged
for each iDTV shipped. An additional royalty is charged for the UK (or other countries possibly in the future), where MHEG-5 is deployed. Price per unit is determined by the cumulative volume of products shipped. On-going royalties are invoiced in
arrears on receipt of quarterly royalty reports. 
  

			
	 23
	  	30 July 2003

 Schedule 4 

Support and Maintenance Services 

Support and Maintenance Fee 
 United
Kingdom 
 *** for each year in which the Support and Maintenance Services are provided. 

Any other Country except the United Kingdom 

*** for each country other than the United Kingdom 

Cabot Support Level Agreement 
  

	1.	Definitions 

  

	1.1	Support Requests 

 Cabot
defines four types of support request 
  

	 	•	 	 Support requests, which identify potential errors in the Licensed Product (i.e. Bugs) 

 

	 	•	 	 Support requests which identify where the customer requires assistance using the Licensed Product from a technical point-of-view. (example: how does
this API call work?) 

  

	 	•	 	 Support requests for features that are not currently in the product 

 

	 	•	 	 Requests for support of content directly from broadcaster 

 

	1.2	Updates 

 During any period in respect of
which the Licensee has paid the Support and Maintenance Fees, Cabot shall provide the Licensee with such Updates as may be released by Cabot from time to time. 
  

	2.	Basic Maintenance Level Service Level Definition 

  

	 	•	 	 Cabot will not provide support directly to broadcasters for Licensee’s product (example work-around for MHEG-5 content). An additional, separate
contract is required for this service. 

  

	 	•	 	 Updates and Upgrades do not include a full system test of the complete product including customer hardware, software and adaptations.

  

			
	 24
	  	30 July 2003

	 	•	 	 Cabot will support requests logged by no more than two named contacts representing the Licensee. 

 

	 	a)	The Licensee must identify one of the contacts as the main contact 

  

	 	b)	Cabot will include the main contact with any correspondence with the Licensee 

 

	 	•	 	 Cabot will normally provide support between the hours of 9AM and 5PM UK time, Monday to Friday excluding UK public holidays.

  

	 	•	 	 Cabot will support the Licensee via email and telephone 

 

	 	•	 	 Where the support request has identified a potential problem in the Licensed Product, Cabot will respond and acknowledge the incident and provide an
investigation plan within 2 working days. 

  

	 	•	 	 In the event that the incident is a request for technical support on how to use the Licensed Product, Cabot will provide best efforts to answer
questions. If the request is identified as requiring extensive development effort beyond the scope of reasonable technical support, then an alternative funded support service will be offered for the request. 

 

	 	•	 	 Cabot will provide an email address support@cabot.co.uk for support communications 

 

	 	•	 	 Cabot will provide a telephone line for support communications 

 

	 	•	 	 Cabot will provide regular email of the status of any logged requests 

 

	 	•	 	 Requests that are new features to the product will not normally be supplied as part of the Support and Maintenance Services. Cabot will inform the
Licensee if the requested feature will be incorporated into the next release with a timetable. If the feature request cannot be accommodated or if the timescale is not acceptable to the Licensee, then Cabot will discuss the fees and timetables for a
specifically funded development. 

  

	 	•	 	 Cabot will only provide support for current versions of the Adapted Software or the immediately preceding version of the Adapted Software for a period
of six (6) months after it is first superseded. 

  

	 	•	 	 Cabot will provide 12 months notice if a Software product is to be made obsolete, at the end of which period Cabot will no longer provide the Support
and Maintenance Services in respect of that Software product. 

  

	 	•	 	 Licensee will provide any hardware, software, development tools and content required by Cabot to reproduce the possible error.

  

			
	 25
	  	30 July 2003

 Schedule 5 

Other Services 
  

	1.	Optional - OAD service: Acting as agent for Philips SC for OAD in the UK only. Includes creation of carousel, test downloads (in-house) and simple system test.
Representation at Engineering Channel meetings. Excludes any direct Engineering Channel or DTG costs. 

 Annual subscription
priced at: *** per annum 
 Price per download: *** 

Price for other country OAD to be determined as authorities and processes mature. 

 

	2.	Optional: Additional Receiver Product Testing Service or New Variant Receiver Product Testing: Full product testing service as on Philips request. As detailed in Cabot
Communications *** including: 

  

	 	•	 	 DTG tests 

  

	 	•	 	 Recorded DVB streams (Cabot + Philips supplied) 

  

	 	•	 	 Broadcaster test streams 

  

	 	•	 	 UK live streams 

  

	 	•	 	 Stress testing 

  

	 	•	 	 Recorded MHEG-5 streams 

  

	 	•	 	 Performance tests with STB comparisons 

  

	 	•	 	 Future MHEG-5 test streams 

  

	 	•	 	 Over-air Download tests 

  

	 	•	 	 CI stack validation to Profile 1 and Profile 2 

  

	 	•	 	 Report generation and interpretation 

This service does not included external testers or any other field-based testing. 

Priced at: *** 
  

	3.	Optional External Tester Trial: Trial of iDTVs in the UK using 5 to 10 geographical spread testers. Includes feedback form generation, collation, error validation and
reporting. Excludes unit and shipment costs. 

 Priced at: *** 

 

			
	 26
	  	30 July 2003

	4.	Optional - Any other engineering, consultancy, support or other services not specified under Schedule 5, Clause 5 or Clause 2 priced at *** per hour or at Cabot’s
standard fees applying at that time. 

  

			
	 27
	  	30 July 2003

 Schedule 6 

The Licensee’s contact details for notices under this Agreement 

Licensee: 
 <<[Please insert
address]>> 
 <<[Please insert fax no.]>> 

For the attention of <<[please insert name of individual]>> 

 

			
	 28
	  	30 July 2003

 IN WITNESS of which this Agreement has been signed by the Parties or their duly authorised representatives
on the date written at the beginning of this Agreement. 
  

			
	Cabot Communications Ltd	  	The Licensee
		
	 ***
	  	 ***

	Authorised Signature	  	Authorised Signature
		
	 ***
	  	 ***

	Deputy Managing Director	  	Marketing & Sales Director
	Print Authorised Signatory’s Name and
Title	  	Print Authorised Signatory’s Name and
Title

  

			
	 31
	  	30 July 2003

			
		
	 ANNEX 15
  

Agreement number; CPO-DCT-105/1.
  

OEM Licence Agreement for ***
 dated
30th July 2003
	 	

	 
	 
	 

 This addendum details the extension of the OEM Licence Agreement to enable Philips
Semiconductors B.V. to use the licensed products as defined below on a hardware platform identified as the *** Series and its derivative the *** 

In order for Cabot to commence this work, the following additions/changes to the OEM Licence will need to be agreed. Please can you sign and return the
enclosed copy of this letter to accept these changes which will take effect from the above date. 
  

	1.	Adaptation of the Software 

 Cabot will
adapt the software in accordance with the Statement of Work, Cabot document number C             for the *** platform for Philips Consumer Electronics as end-customer of Philips
Semiconductors. 
  

	2.	Licences 

 Philips Semiconductors may use
Cabot adapted software in accordance with the licence terms set out in Section 4 of the OEM Licence. 
 For the purposes of this addendum
the licensed products identified in Schedule 1 shall be the following: 
  

					
	 Licensed Product
	  	Version	 	MHEG spec.
Version
	 ***
	  	***	 	***

  

	3.	Payments 

 In return for Cabot doing this
work and providing the support referred to below, Philips Semiconductors agree to make the following payments: 
 An IP License fee for *** on
the *** and *** for a total of *** shall be due. This will be payable on the execution of this addendum. 
 An option to purchase the right to
access the *** version of *** on the *** and *** when it is available is offered to Philips for the sum of *** this excludes any required Integration support or verification fees. This option can be exercised at anytime during the project. *** will
follow the same conditions as the *** will then contribute to the already accumulated royalties derived from ***. 
  

 Page 1 of 3 

 A Support and maintenance fee of *** will be due on acceptance for the hardware platform *** and its
derivative the ***. This fee is due annually. 
 A System testing fee of *** per licensed products (i.e. ***), allowing for two test cycles.
Payable on delivery of applicable releases defined in the Statement of Work. 
 Cabot shall invoice Philips Semiconductors B.V. at the end of
each month for the Engineering Services procured at a rate of *** per man month. 
 The support hours required are estimated to 3.5 man months.

  

	4.	Royalties 

 The royalty table in the
original OEM License agreement and subsequent addenda shall be replaced with the following: 
  

													
	  	  	0 to
49,999	 	50,000 to
99,999	 	100,000 to
249,999	 	250,000 to
499,999	 	500,000 to
1,000,000	 	1,000,000+
	 ***Plug-in
	  	***	 	***	 	***	 	***	 	***	 	***

 Royalty notes: 

 

	 	a)	The royalty due is dependent on the licensed products incorporated into the final product. 

 

	 	b)	The royalty rate due is dependent on the cumulative number of Licensed products sold from the date of this addendum. The number of shipments is considered as zero for
the purposes of the identified licensed products. 

  

	 	c)	The royalty rates above apply for all shipments from 2008. Royalty rates will decrease by *** in year 2007 and subsequently by another *** from the royalty rate of 2007
in 2008. This mechanism is illustrated by the royalty table below: 

 Royalty table: 

 

							
	 Cumulative City
	  	2006	 	2007	 	2008
	 0 to 49,999
	  	***	 	***	 	***
	 50,000 to 99,999
	  	***	 	***	 	***
	 100,000 to 249,999
	  	***	 	***	 	***
	 250,000 to 499,999
	  	***	 	***	 	***
	 500,000 to 999,999
	  	***	 	***	 	***

  

	 	d)	During the term of this contract, Philips may benchmark the competitiveness of the cost and share this with Cabot in order for Cabot to remain competitive.

  

 Page 2 of 3 

	5.	Warranties 

 Section 10 of the OEM
Agreement shall apply. 
  

	6.	Support & Maintenance and Upgrades 

Cabot shall use its reasonable efforts to provide the Support and Maintenance Services in accordance with Schedule 4 of the OEM Agreement. 

Upgrades shall be provided in accordance with Section 6 of the OEM Agreement. 

 

	7.	Relationship to OEM License 

 This letter
supplements and amends the original OEM License we agreed, which continues to apply. If there is any confusion or conflict between the OEM License and this letter with attachments, then this letter will take priority. 

For and on behalf 
 Cabot Communications
Ltd. 

			
	 Signed
	 	***
	 Name
	 	***/DEPUTY MD
	 Date:
	 	June 15, 2005

 For and on behalf of 

PHILIPS SEMICONDUCTORS B.V 

			
	 Signed
	 	***
	 Name
	 	***
	 Date:
	 	June 15, 2005

  

 Page 1 of 1 

 ANNEX 16 Trademark License Agreement 

*** 
  

 194Intellectual Property Transfer and License Agreement dated as of Nov 16, 2009

 Exhibit 10.2 

EXECUTION VERSION 

CONFIDENTIAL TREATMENT REQUESTED - CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE
COMMISSION. 
 *** INDICATES CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

INTELLECTUAL PROPERTY TRANSFER AND 

LICENSE AGREEMENT 

Among 

NXP B.V. 

Virage Logic Corporation 

And 
 VL C.V.

 Dated November 16, 2009 

 EXECUTION VERSION 

 

 Contents 
  

							
	 	 	 	 	 Page

			
		 	  Clause	 	
			
	 1
	 	  INTERPRETATION	 	3
			
	 2
	 	  TRANSFER AND LICENSE	 	10
			
	 3
	 	  TRADEMARKS	 	19
			
	 4
	 	  PRIOR AND FUTURE SELLER COMMITMENTS AND UNDERTAKINGS	 	20
			
	 5
	 	  ROYALTY	 	21
			
	 6
	 	  ROYALTY REPORTING AND AUDIT RIGHTS	 	26
			
	 7
	 	  CONFIDENTIALITY	 	28
			
	 8
	 	  REPRESENTATIONS AND WARRANTIES; DISCLAIMER	 	30
			
	 9
	 	  INFRINGEMENT INDEMNITY AND LIMITATION OF LIABILITY	 	31
			
	 10
	 	  TERM AND TERMINATION	 	34
			
	 11
	 	  ASSIGNMENT	 	34
			
	 12
	 	  APPLICABLE LAW; DISPUTE RESOLUTION PROCEDURE	 	35
			
	 13
	 	  MISCELLANEOUS	 	36
				
		 	Annexes	 		 	
				
		 	Annex A	 	Transferred IP Blocks	 	
		 	Annex B	 	Transferred IP Tools	 	
		 	Annex C	 	Transferred Software	 	
		 	Annex D	 	Transferred Patents	 	
		 	Annex E	 	CoReUse Documentation	 	
		 	Annex F	 	NXP CoReUse Trademarks	 	
		 	Annex G	 	NXP Tools	 	
		 	Annex H	 	Royalty Reporting	 	
		 	Annex I	 	Purchaser Competitors	 	
		 	Annex J	 	Seller’s Trademark Usage Guidelines	 	
		 	Annex K	 	Seller Designated Bank Account	 	
		 	Annex L	 	High Level IP Block Obligations and Restrictions	 	
		 	Annex M	 	Revenue Sharing Deductible Costs	 	
		 	Annex N	 	Patent Assignment	 	
		 	Annex O	 	Tape-Out Report	 	

  

 Page 2/38 

 EXECUTION VERSION 

 

 INTELLECTUAL PROPERTY TRANSFER AND LICENSE AGREEMENT 

THE UNDERSIGNED: 
  

	 	(1)	NXP B.V., a limited liability company incorporated under the laws of the Netherlands, with corporate seat in Eindhoven, the Netherlands, and having its
address at High Tech Campus 60, 5656 AG Eindhoven, the Netherlands, (“Seller”); 

  

	 	(2)	Virage Logic Corporation, a corporation incorporated under the laws of Delaware, USA, and having its address at 47100 Bayside Parkway, Fremont, California
94538, USA (“Purchaser”); and 

  

	 	(3)	VL C.V., a limited partnership formed under the laws of The Netherlands, the general partner of which is an Affiliate of Purchaser and all of the
outstanding equity interests of which are owned directly or indirectly by Purchaser, and having its address at 47100 Bayside Parkway, Fremont, California 94538, USA. (“VL C.V.”). 

WHEREAS: 
  

	 	(A)	Seller and Purchaser have entered into that certain Asset Purchase Agreement dated October 9, 2009 (the “Asset Purchase Agreement”)
relating to the sale and transfer to Purchaser of the Operations (as defined in the Asset Purchase Agreement) by Seller; and 

  

	 	(B)	By this Agreement, the Seller, Purchaser and VL C.V. (each a “Party” and collectively the “Parties”) wish to set out the terms and conditions
applicable to the licensing, assignment and transfer of certain materials and intellectual property among the Parties in connection with the foregoing; 

NOW THEREFORE, in consideration of the premises, and of the mutual covenants and agreements contained herein and in the Asset Purchase
Agreement and other Ancillary Agreements, the Parties hereby agree as follows: 
  

	1	INTERPRETATION 

  

	1.1	Definitions 

 When used in
this Agreement, the following capitalised terms shall have the meanings set forth below. Any capitalised term used in this Agreement but not defined herein, shall have the meaning ascribed thereto in the Asset Purchase Agreement. 

“Agreement” means this Intellectual Property Transfer and License Agreement (including all Annexes hereto), as the same
may be amended or supplemented from time to time in accordance with the provisions hereof. 
  

 Page 3/38 

 EXECUTION VERSION 

 

 “Asset Purchase Agreement” has the meaning set forth in the recitals to
this Agreement. 
 “Combination Versions” means any derivative work of a Transferred IP Block or Transferred
Software (or any derivative of such derivative) other than a Successor Version. 
 “Confidential Information”
has the meaning set forth in clause 7.1 below. 
 “CoReUse” means Seller’s certification standard for
re-usability of IP Blocks and software as set forth in Seller’s documents at the Closing Date, included by reference in Annex E hereto, as may be reasonably updated by Seller from time to time after the Closing Date. 

“Covered Products” means IC Products (including tangible products embodying High-Level IP Blocks), and software embedded
in or executed on such IC Products or designed and used for testing IC Products. 
 “Customer Activities” means
to design, have designed, make, have made, use, import, export, offer for sale, sell and/or otherwise dispose of Transferred IP IC Products and Successor and Combination Version IC Products. 

“Deductible Costs” has the meaning set forth in Section 5.2 below. 

“Divested Company” of any Person means any former Affiliate of a Person (whether such Person is now or hereafter an
Affiliate thereof) as and from the moment it no longer qualifies as an Affiliate hereunder because of a sale, conveyance, split-off, spin-off or other transfer of all or a portion of such Person’s interest in such Affiliate, or any former
unincorporated business or division of such Person (whether such business or division is now or hereafter a business of such Person) as and from the moment it is divested by the Person to a transferee that is not an Affiliate of such Person, it
being understood that a Divested Company shall include a Person, unincorporated business or division that becomes a former Affiliate, unincorporated business or division after the date of the Asset Purchase Agreement, it being further
understood that a Divested Company shall not include any Person, unincorporated business or division that becomes a former Affiliate, unincorporated business or division if at any time it was previously a Divested Company. 

“High-Level IP Block” means an IP Block or a System on Chip that contains Purchaser Licensed IP plus material added by
Seller. 
 “IC Products” mean hardware semiconductor integrated circuit wafers, chips, dies and systems, which
systems include multi-chip modules, systems in package and dies on substrate, PCB or similar material. 
  

 Page 4/38 

 EXECUTION VERSION 

 

 “Intellectual Property Rights” means copyrights, database rights, mask
work rights, semiconductor rights, design rights, trade secret rights, and all analogous and other similar rights existing under the laws of any jurisdiction in the world, and all applications and registrations for the foregoing, but specifically
excluding Patents and Trademarks. 
 “IP Block” means an electronic circuit representing a component of a larger
system on an integrated circuit. 
 “IP Block Documentation” means for each Transferred IP Block, all
documentation owned by Seller or any of its Affiliates that consists of or otherwise comprises circuit diagrams on any level of abstraction applicable, all EDA views on any level of abstraction, silicon reports or equivalent proof of silicon
validation, datasheets, release notes, application notes, training materials and other technical documents and technical files applicable to such Transferred IP Block. For the avoidance of doubt, for the *** technology, all manuals, technical
guidelines and other technical documents and technical files that are owned by Seller or any of its Affiliates are included. 

“IP Tool Documentation” means for each Transferred IP Tool, all documentation owned by Seller or any of its Affiliates
that consists of or otherwise comprises manuals, technical guidelines and other technical documents and technical files applicable to such Transferred IP Tool. 

“Library Elements” means standard cells used in the synthesis of RTL blocks that are part of the Transferred IP Blocks,
other than standard cells contained in standard cell libraries listed in any of Annex A – C hereunder. 
 “Licensed
IPRs” means any Intellectual Property Rights that are both (a) infringed by, or embodied or included in, any of the Transferred Materials as provided hereunder, and (b) owned by Seller or any of its Affiliates between the date of
the Asset Purchase Agreement and twelve (12) months following the Closing Date, other than Transferred IPRs. 

“Licensed Materials” means 
  

	 	(i)	for each Transferred IP Block, the portions of the applicable IP Block Documentation that directly relate to that Transferred IP Block and that are used by Seller or
any of its Affiliates for (but not exclusively for) the Operations as of the Closing Date; 

  

	 	(ii)	for each Transferred IP Tool, the portions of the applicable IP Tool Documentation that directly relate to that Transferred IP Tool and that are used by Seller or any
of its Affiliates for (but not exclusively for) the Operations as of the Closing Date; 

  

	 	(iii)	for each Transferred Software, the portions of the applicable Software Documentation that directly relate to that Transferred Software and that are used by Seller or
any of its Affiliates for (but not exclusively for) the Operations as of the Closing Date; and 

  

	 	(iv)	the NXP Tools; 

  

 Page 5/38 

 EXECUTION VERSION 

 

 which, for (i), (ii) and (iii) above, shall include, for example, the
applicable portions of Seller’s final IC Product documentation and documentation of subsystems (e.g., High-Level IP Blocks) that contain one or more of the Transferred IP Blocks, Transferred IP Tools or Transferred Software. 

“Licensed Patents” means the NXP Transferred Materials Patents and the NXP Successor Version Patents. 

“NXP CoReUse Trademarks” means the Trademarks listed in Annex F hereto. 

“NXP Successor Version Patents” means any claims in any Patent (including any Patent that issues on any Patent
application filed during the time frame set forth in (b) below) that are both: 
  

	 	(a)	infringed by any Successor Versions developed by or on behalf of Purchaser or the manufacture, use, import, offer for sale or sale thereof, it being
understood that in each case NXP Successor Version Patents shall not include any claims in any Patents that read on any semiconductor manufacturing process; and 

 

	 	(b)	owned by Seller or its Affiliates at any time between the date of the Asset Purchase Agreement and *** after the Closing Date. 

“NXP Tools” means the tools listed in Annex G hereto, excluding the portions thereof not owned by Seller as set forth
under the heading “Third Party IP” in Annex G.  
 “NXP Transferred Materials Patents” means
any claims in any Patent that are both: 
  

	 	(a)	infringed by any of the Transferred Materials as furnished hereunder or any or the manufacture, use, import, offer for sale thereof, it being understood
that NXP Transferred Materials Patents shall not include any claims in any Patents that read on any semiconductor manufacturing process; and 

  

	 	(b)	owned by Seller or its Affiliates as of the date of the Asset Purchase Agreement or *** thereafter. 

“Partial Combination Version” means that portion of a Combination Version that contains IP Blocks or software licensed,
or transferred or assigned by Seller hereunder. 
 “Patents” means any patents and patent applications, together
with all additions, divisions, continuations, continuations-in-part, substitutions, reissues, re-examinations, extensions, registrations, patent term extensions, supplemental protection certificates and renewals of any of the foregoing, in any
country of the world. 
 “Purchaser Competitor” means the Persons listed or otherwise described on Annex I
hereto. 
 “Purchaser Confidential Information” shall have the meaning set forth in clause 7.1. 

 

 Page 6/38 

 EXECUTION VERSION 

 

 “Purchaser Customer” shall have the meaning set forth in clause 2.4.

 “Purchaser Indemnified Version” shall have the meaning set forth in clause 9.1.1. 

“Purchaser Licensed IP” means the Transferred Materials, Transferred IPRs, Transferred Patents, Purchaser Successor
Versions, Purchaser Successor Version IPRs, the Purchaser Partial Combination Versions and the Purchaser Partial Combination Version IPRs. 

“Purchaser Partial Combination Version” means that portion of a Combination Version that contains IP Blocks or software
licensed, or transferred or assigned by Seller hereunder. For purposes of this definition only, “Combination Versions” shall refer only to those Combination Versions made by or on behalf of Purchaser or any of its Affiliates or
otherwise owned by Purchaser or any of its Affiliates. 
 “Purchaser Partial Combination Version IPRs” means any
Intellectual Property Rights and any claims in any Patents that are both (i) infringed by, or embodied or included in, any of the Purchaser Partial Combination Versions and (ii) owned by Purchaser or any of its Affiliates. 

“Purchaser Successor Version” means any Successor Version made by or on behalf of Purchaser or any of its Affiliates or
otherwise owned by Purchaser or any of its Affiliates. 
 “Purchaser Successor Version IPRs” means any
Intellectual Property Rights and any claims in any Patents that are both (i) infringed by, or embodied or included in, any of the Purchaser Successor Versions and (ii) owned by Purchaser or any of its Affiliates. 

“Purpose” shall have the meaning set forth in clause 2.4. 

“Receiving Party” shall have the meaning set forth in clause 7.1.  

“Restricted Activities” shall have the meaning set forth in clause 5.4. 

“Royalty Term” means the seven (7) year period after the Closing Date. 

“Seller Confidential Information” shall have the meaning set forth in clause 7.1.  

“Seller Indemnified Party” shall have the meaning set forth in clause 9.1.1.  

“Seller Licensed Activity” shall have the meaning set forth in clause 2.2. 

“Software Documentation” means for each Transferred Software, all documentation owned by Seller or any of its Affiliates
that consists of or otherwise comprises technical documents and technical files applicable to such Transferred Software. 
  

 Page 7/38 

 EXECUTION VERSION 

 

 “Successor and Combination Version IC Products” has the meaning set
forth in clause 2.4. 
 “Successor Versions” means any derivative work of a Transferred IP Block or Transferred
Software (or any derivative of such derivative) that contains no modifications of or improvements to such Transferred IP Block or Transferred Software, other than modifications or improvements to the extent necessary to: 

 

	 	(a)	correct bugs or similar errors; 

  

	 	(b)	adapt or port Transferred IP Blocks or Transferred Software, as applicable, to different or new production processes; 

 

	 	(c)	improve production yield or reduce manufacturing costs of Transferred IP Blocks or Transferred Software, as applicable, while retaining substantially similar
architecture and design; 

  

	 	(d)	implement a design shrink; or 

  

	 	(e)	include or support additional EDA tool views. 

“Suspension Period” shall have the meaning set forth in clause 5.4. 

“Trademarks” means trademarks, service marks, brand names, certification marks, collective marks, domain names, logos,
symbols, trade dress, trade names and other indicia of origin, and all applications and registrations for the foregoing. 

“Transferred IP Blocks” means the IP Blocks listed in Annex A hereto. 

“Transferred IP IC Products” has the meaning set forth in clause 2.4. 

“Transferred IP Tools” means the IP Block-related tools, standards and re-use enablers listed in Annex B hereto.

 “Transferred IPRs” means any Intellectual Property Rights that (x) are misappropriated or infringed by,
or embodied or included in, any of the Transferred Materials as provided hereunder, (y) are owned by Seller or any of its Affiliates as of the Closing Date and (z) are used exclusively in connection with or for the Purpose as of the Closing
Date. 
 “Transferred Materials” means: 

 

	 	(i)	(x) the Transferred IP Blocks in source code format and (y) all of the applicable IP Block Documentation that are used by Seller or any of its Affiliates in their
respective conduct of the Operations as of the Closing Date; 

  

	 	(ii)	(x) the Transferred IP Tools, (y) all code (including executable and source code) therein, and (z) all of the applicable IP Tool Documentation that are used by Seller
or any of its Affiliates in their respective conduct of the Operations as of the Closing Date; and 

  

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	 	(iii)	(x) the Transferred Software and (y) all of the applicable Software Documentation that are used by Seller or any of its Affiliates in their respective conduct of the
Operations as of the Closing Date, 

 in each case other than the Licensed Materials. 

“Transferred Materials Infringement Claim” shall have the meaning set forth in clause 5.5.1. 

“Transferred Materials Infringement Claim Costs” shall have the meaning set forth in clause 5.5.1. 

“Transferred Patents” means the Patents listed in Annex D hereto. 

“Transferred Software” means the software listed in Annex C hereto. 

“US/Netherlands Treaty” means the Convention Between the United States of America and the Kingdom of the Netherlands for
the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes and Income, as amended and as in effect as of the date of this Agreement. 
  

	1.2	References 

  

	 	1.2.1	Any reference in this Agreement to a liability or obligation of Seller shall be deemed to incorporate an obligation on the part of Seller to procure that the relevant
liability is discharged or obligation is performed by Seller’s relevant Affiliates, subject to the terms set out in this Agreement. 

  

	 	1.2.2	Any reference in this Agreement to a liability or obligation of Purchaser or VL C.V. shall be deemed to incorporate an obligation on the part of Purchaser or VL C.V. to
procure that the relevant liability is discharged or obligation is performed by Purchaser’s or VL C.V.’s relevant Affiliates (including, in the case of Purchaser, VL C.V.), subject to the terms set out in this Agreement.

  

	 	1.2.3	Any reference in this Agreement to a license granted to Seller shall be deemed to incorporate the same license to Seller’s relevant Affiliates, subject to the
terms set out in this Agreement. 

  

	 	1.2.4	Any reference in this Agreement to a license granted, or required to be granted pursuant to clause 2.2(e), to Purchaser or VL C.V. shall be deemed to incorporate the
same license to Purchaser’s Affiliates, subject to the terms set out in this Agreement. 

	 	1.2.5	Whenever used in this Agreement, the words “include”, “includes” and “including” and variations thereof shall not be deemed to be terms of
limitation, and shall be deemed to be followed by the words “without limitation”. 

  

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	1.3	Drafting party 

 No
provision of this Agreement shall be interpreted against a Party solely as a result of the fact that such Party was responsible for the drafting of such provision, it being acknowledged that the Parties and representatives of the Parties have
participated in the drafting and negotiating of this Agreement. 
  

	1.4	Headings and references 

The clause and paragraph headings and table of contents contained in this Agreement are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Agreement. 
  

	2	TRANSFER AND LICENSE 

  

	2.1	Transferred Materials, IPRs and Patents 

Subject to the terms and conditions of this Agreement, Seller hereby assigns, transfers and conveys to VL C.V. the Transferred Materials,
the Transferred IPRs and the Transferred Patents, and VL C.V. hereby accepts the assignment of the Transferred Materials, Transferred IPRs and Transferred Patents. 
  

	2.2	License Back 

  

	 	(a)	VL C.V. hereby grants to Seller a non-exclusive, irrevocable, perpetual, nonterminable, world-wide, royalty-free (except pursuant to clause 2.2(b)(iii) below) and
fully-paid up (except pursuant to clause 2.2(b)(iii) below) license, without the right to sublicense except as expressly set forth in clauses 2.2(b), (c) and (d) below, to and under the Purchaser Licensed IP to: 

 

	 	(i)	as applicable, use, have used, modify, have modified, improve, have improved, create and have created derivative works thereof; 

 

	 	(ii)	manufacture, have manufactured, make, have made, design, have designed and use Covered Products; 

 

	 	(iii)	offer to sell, sell, have sold, import, have imported, export, have exported, copy, have copied, distribute or otherwise dispose of IC Products included in such Covered
Products; and 

  

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	 	(iv)	offer to license, have licensed and license, import, have imported, export, have exported, copy and have copied High-Level IP Blocks or any software included in such
Covered Products. 

 For the avoidance of doubt, all “have” rights set forth in this clause (a) are
limited to the right to have third parties, including contract manufacturers, use such rights solely on behalf of Seller or any of its Affiliates or any of their respective permitted sublicensees. On a quarterly basis (for the duration of the
Services Period (as defined in the Technology Services Agreement) and to the extent not previously delivered, Purchaser, at its own expense, shall deliver to Seller the source code portions of any software included in the Purchaser Licensed IP. The
source code shall include updated schematics (to the extent schematics were originally provided by Seller to VL C.V.), along with fully documented human-readable source code, including programmer’s notes, flow charts, logic diagrams and other
such materials and documentation, in each case to the extent available. For the avoidance of doubt, Seller shall be entitled to sublicense and deliver to any sublicensee permitted by this Agreement, the source code and related materials described in
the previous two sentences, and to grant to such sublicensee a sublicense to such source code and materials consistent with the rights set forth in clause 2.2(a)(i) through (iv) above, but limited to the scope of such sublicense (including as
required by clause 2.2(c) below, as applicable). 
  

	 	(b)	Subject to the restrictions set forth in clause 2.2(d) below, Seller shall have the right to sublicense: 

 

	 	(i)	all or part of the rights set forth in clause (a) above to Divested Companies of Seller at the applicable time of such divestment (or a direct or indirect parent
company thereof (for use solely with respect to the Divested Company as provided herein)) (subject to the restrictions set forth below in clause 2.2(c) below), including the right to further sublicense in accordance with clause 2.2(b)(iii) below;

  

	 	(ii)	all or part of the rights set forth in clause 2.2(a) above solely with respect to *** to third parties in connection with *** or similar programs or *** programs in
which Seller or any of its Affiliates is or may be a participant from time to time, whether now or in the future, to the extent such licenses are required as a condition to participation in such programs and such sublicensed third parties have no
right to *** without reference to or use in the applicable ***; 

  

	 	(iii)	 all or part of the rights set forth in clause 2.2(a) above solely with respect to *** to third parties, subject to the payment and other obligations
set forth in Annex L hereto), it being understood that such third parties shall have the 

  

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right to use, have used, modify, have modified, improve, have improved, create and have created ***, manufacture, have manufactured, make, have made, design, have designed and use ***, and to
offer to sell, sell, have sold, import, have imported, export, have exported, copy, have copied, distribute or otherwise dispose of such *** and such sublicensed third parties have no right to *** without reference to or use in the applicable ***;

  

	 	(iv)	all or part of the rights set forth in clause 2.2(a) above in the event of and following an uncured material breach by Purchaser of any material delivery milestone,
material breach of Support Services obligations with respect to Critical Error Corrections (each as defined in the Technology Services Agreement) or material breach of express breach of warranty remedy, in each case under the Technology Services
Agreement or a Statement of Work thereto, that is not cured within sixty (60) days after the conclusion of the breach resolution procedures set forth in Section 8.2.1 of the Technology Services Agreement; 

 

	 	(v)	all or part of the rights set forth in clause 2.2(a) above in the event of and following an uncured material breach by Purchaser of any material delivery milestone,
material breach of Support Services obligation with respect to Critical Error Corrections or material breach of express breach of warranty remedy, in each case under the Services Agreement or a Statement of Work thereto, that is not cured within one
(1) day after the conclusion of the breach resolution procedures set forth in Section 8.2.1 of the Technology Services Agreement, but solely to enable Seller or any of its Affiliates to engage a third party to provide services to Seller or
any of its Affiliates solely with respect to the Deliverable(s) that are the subject of such uncured material breach and provided that, in the event that Purchaser cures such material breach within sixty (60) days after the conclusion of the
breach resolution procedures set forth in Section 8.2.1 of the Technology Services Agreement, Seller’s right to sublicense and any sublicense granted under this clause 2.2(b)(v) shall automatically terminate after the completion of such
services by such third party; and 

  

	 	(vi)	*** and *** insofar as the Purchaser Licensed IP constitutes Deliverables (as defined in the Technology Services Agreement) that Seller is required to provide to ***,
as applicable, pursuant to that certain *** and the ***, each in effect as of *** 

  

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 The rights in clause 2.2(b)(i) above shall be further sublicensable one (1) time
only by one (1) Divested Company of Seller relating to all or part of Seller’s *** (such right to further sublicense to be granted at the time of divestment of *** solely to a Divested Company of *** at the time of such divestment (as such
Divested Company may organically grow or change from time to time), provided that such further sublicense contains the restrictions set forth in clauses 2.2(c)(i) and c(iii) below and is otherwise in compliance with all of the requirements
set forth in this clause 2.2 (including clause 2.2(d) below and Annex L hereto). Any Divested Company sublicense will be transferable or assignable, in whole but not in part, to any Affiliate of the sublicensee or to a third party as part of a
merger, acquisition or sale of such sublicensee or substantially all of the business or assets of sublicensee related to the subject matter of this Agreement, as long as the third party involved in such a merger, acquisition or sale is not a
Purchaser Competitor and provided that such Affiliate or third party, as applicable, agrees in writing to be bound by all of the terms, conditions and provisions contained in the applicable sublicense agreement required pursuant to clause
(d) below. 
  

					
	   (c)
	 	 (i)
	 	 Except as set forth in clause 2.2(c)(ii) below, for each sublicense to or with respect to a Divested Company of Seller or a Divested Company of ***
permitted pursuant to clause 2.2(b) above, such sublicense shall be limited to exercising the rights in clauses 2.2(a)(i), (ii) and (iii) above only with respect to

 

	 	(I)	IC Products that have been Taped Out, IC Products under development, and High-Level IP Blocks and software of such Divested Company in existence, in each case as of the
date of divestiture, 

  

	 	(II)	any future IC Products, High-Level IP Blocks or software on then-current roadmaps of such Divested Company as of the date of divestiture, and 

 

	 	(III)	any derivatives or natural successors of the items specified in 2.2(c)(i)(I) and (II) above. 

 

	 	(ii)	In the event that Seller grants a sublicense to or with respect to *** under clause 2.2(b) above, such sublicense shall not be subject to the restrictions set forth in
clause 2.2(c)(i) above; provided, however, that the permitted one (1) time further sublicense by *** to a Divested Company of *** shall be subject to the restrictions set forth in clause 2.2(c)(i) above. 

 

	 	(iii)	Except as set forth in clause (c)(iv) below, no sublicense granted to a Divested Company pursuant to clause (i) or clause (ii) shall extend to any Person,
business, operation or activity with which any such Divested Company becomes combined or is merged. 

  

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 EXECUTION VERSION 

 

	 	(iv)	Notwithstanding clause (c)(iii) above, for so long as Seller does not *** to *** of the ***, if the *** on *** is *** set forth in the *** thereto or *** as long as no
other Person (other than controlled Affiliates of *** or Seller) is a *** and Seller (it being understood that, ***, the *** is the *** for purposes of this Agreement), Seller may enter into agreements extending the sublicense granted with
respect to *** to any Person, business, operation or activity with which *** is combined or is merged, but solely for the purpose of conducting the business of *** (and not for any other purpose). With respect to all other Divested Company
sublicenses hereunder, Purchaser shall consider in good faith any request by Seller to have the sublicense with respect to the applicable Divested Company extended to any Person, business, operation or activity with respect to which such Divested
Company is combined or is merged, but solely for the purpose of conducting the business of such Divested Company (and not for any other purpose). 

  

	 	(d)	Each sublicense granted under clause 2.2(b) shall be subject to a written sublicense agreement under which each sublicensee shall agree to the scope of sublicense and
the restrictions and other obligations set forth in this Agreement applicable to the rights sublicensed, including the applicable express restrictions referenced in clause 2.2 (c)(iii) and (c)(iv) above, and each such sublicense agreement shall

  

	 	(i)	be governed by the same governing law and dispute resolution procedures and venue as set forth in this Agreement, and 

 

	 	(ii)	require that Purchaser be copied on all notices provided under such sublicense agreement. 

Any such sublicense agreement shall also contain the terms and conditions set forth in clause 2.2(f) below and, if applicable, Annex L
hereto. Seller shall advise Purchaser in writing of each such sublicense and provide Purchaser with a copy of each sublicense agreement and any amendment or other modification thereto within thirty (30) days of execution of same. Further, each
sublicense agreement with or with respect to a Divested Company (not including the sublicense agreement with *** but including the sublicense agreement executed in connection with the exercise of *** of its

  

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 EXECUTION VERSION 

 

 
permitted one (1) time further sublicense to a Divested Company of *** shall require such Divested Company to provide Purchaser with a copy of the roadmap applicable to such sublicense upon
the written request of Purchaser. Any roadmap provided hereunder shall be kept strictly confidential in files of Purchaser’s CEO and/or Vice President of Engineering marked “Highly Confidential” and access thereto and use thereof
shall be restricted solely for the purposes of determining whether the scope of the sublicense to, or the exercise of the sublicense by, the applicable Divested Company has been exceeded. Purchaser and VL C.V. agree that Seller shall have no
liability for any acts or omissions of its permitted sublicensees; provided that as a condition to Seller’s ability to sublicense its rights hereunder and its sublicensees’ ability to sublicense their permitted sublicensees, Seller
agrees, and Seller shall cause each of its sublicensees hereunder to be obligated in writing to agree, in the applicable written sublicense agreement between Seller and such sublicensee, that Purchaser shall be expressly named as an intended third
party beneficiary of any such sublicense in the applicable sublicense agreement with the express right to enforce such sublicense agreement in accordance with its terms. 

 

	 	(e)	As among the Parties, Seller shall exclusively own and retain all right, title and interest in and to any modifications, improvements, updates and derivative works of
the Purchaser Licensed IP (other than any Patents included therein) developed by or on behalf of Seller, any of its Affiliates or any sublicensee hereunder; provided, however, that with respect to any claims in any Patent owned by Seller or
any of its Affiliates at any time after the Closing Date that read on or are directed towards any such modifications, improvements, updates or derivative works that are developed by or on behalf of Seller or any of its Affiliates, Seller shall
automatically grant, and hereby does grant, without any additional requirement, including execution of a separate license agreement, to VL C.V. a license under all such claims, which license shall be of the same scope and for the same purposes as
the license granted in clause 2.5 below, and for the avoidance of doubt, all such claims shall be deemed licensed to VL C.V. under clause 2.5 below. The sublicense rights set forth herein shall be subject to the applicable sublicensee automatically
granting to VL C.V., ab initio, without any additional requirement, including execution of a separate license agreement, a license under any claims in any Patent owned by such sublicensee at any time after the date such sublicense is granted
to such sublicensee, that read on or are directed towards any modifications, improvements, updates or derivative works of the Purchaser Licensed IP made by or on behalf of such sublicensee, which license shall be of the same scope and for the same
purposes as the license granted in clause 2.5 below. 

  

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 EXECUTION VERSION 

 

					
	   (f)
	 	 (i)
	 	 No licensee or sublicensee under this Agreement shall delete or in any manner alter any intellectual property rights notices of Purchaser or its
suppliers, if any, appearing on the Purchaser Licensed IP. Each such licensee and sublicensee shall reproduce such notices in a substantially similar manner on each copy it makes of any Purchaser Licensed IP.

 

	 	(ii)	Each licensee and sublicensee under this Agreement shall identify Purchaser on semiconductor manufacturers’ declaration forms as a licensor of the intellectual
property owned by Purchaser embodied in the Purchaser Licensed IP that is contained in such licensee’s or sublicensee’s products as produced by its semiconductor manufacturer(s). Each such licensee and sublicensee shall execute such
declaration as provided by each such semiconductor manufacturer to document the content of the Purchaser Licensed IP in such products. Upon Purchaser’s request, the applicable licensee or sublicensee shall authorize the applicable semiconductor
manufacturer to provide information directly to Purchaser documenting the content of the Purchaser Licensed IP in such products. 

  

	 	(iii)	Each licensee under this Agreement acknowledges and agrees, and each sublicensee under this Agreement shall acknowledge and agree in the applicable sublicense
agreement, that (I) certain output generated by or on behalf of such licensee or sublicensee through use of certain Purchaser Licensed IP licensed to it hereunder may contain information that complies with the Virtual Component Identification
Physical Tagging Standard (VCID) as maintained by the Virtual Socket Interface Alliance (VSIA), (II) such information may be expressed in GDSII Layer 63 or other such layer designated by Purchaser, the VSIA, and hardware definition languages, or
other formats, and (III) it is not authorized to, and it shall not, alter or change any such information. 

  

	 	(iv)	In the event a semiconductor manufacturer is manufacturing integrated circuits for any licensee or sublicensee using any of the Purchaser Licensed IP, each such
licensee and sublicensee shall provide to Purchaser reports once per quarter setting forth, for the previous quarter, the project tracking number used by the semiconductor manufacturer to identify Tape Outs (as defined in the Master License
Agreement) completed in such quarter using such Purchaser Licensed IP. The reports shall be sent via email to tapeout@viragelogic.com; provided, however, that Licensee may deliver such reports through the Steering Committee (as defined in the
Technology Services Agreement). A sample form of such report is included as Annex O hereto. 

  

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	2.3	Effectuation 

 Seller will
execute and deliver all files, assignments (including the Patent assignment set forth in Annex N hereto), and titles, evidence or authorisations as may be required to vest, perfect, confirm, effectuate or to formalise the assignment, transfer and
conveyance of the Transferred Materials, Transferred IPRs and Transferred Patents to VL C.V. Any other aspects concerning delivery by Seller of Transferred Materials, Transferred IPRs and Transferred Patents to VL C.V. shall be governed by the
Umbrella Transitional Services Agreement. 
  

	2.4	Licensed Materials and IPRs 

Subject to the terms and conditions of this Agreement (including clause 2.8), Seller hereby grants to VL C.V. a personal, non-exclusive,
non-transferable (except as set forth in clause 11), perpetual, irrevocable, non-terminable, world-wide, royalty-free and fully paid-up license under the Licensed Materials and Licensed IPRs only for the purpose of the following (the following being
referred to as the “Licensed Activities”), in each case only in connection with CMOS silicon wafer manufacturing processes with a design rule of ninety (90) nanometers and smaller (and IC Products resulting from such processes)
(the “Purpose”) and for no other purpose or use: 
  

	 	(a)	promoting, licensing, supplying, and providing maintenance and support services regarding, the Transferred IP Blocks and Transferred Software to Purchaser’s
downstream customers (each, a “Purchaser Customer”) (provided that these Purchaser Customers will be bound by confidentiality agreements no less restrictive than Purchaser’s confidentiality obligations hereunder) solely to enable such
customers to design, have designed, make, have made, use, import, export, offer for sale, sell or otherwise dispose of those portions of IC Products that contain Transferred IP Blocks or Transferred Software (such portions, the “Transferred IP
IC Products”); 

  

	 	(b)	developing Successor Versions and Partial Combinations Versions; 

  

	 	(c)	promoting, (sub)licensing, supplying, and providing maintenance and support services regarding, Successor Versions and Partial Combination Versions to Purchaser
Customers (provided that these Purchaser Customers will be bound by confidentiality agreements no less restrictive than Purchaser’s confidentiality obligations hereunder) solely to enable such customers to design, have designed, make, have
made, use, import, export, offer for sale, sell and/or otherwise dispose of those portions of IC Products that contain Successor Versions or Partial Combination Versions (such portions, the “Successor and Combination IC Products”);

  

	 	(d)	using the Transferred IP Tools, and derivative works thereof, and the NXP Tools and other Licensed Materials related to the NXP Tools to configure Transferred IP
Blocks and any Successor Versions and Partial Combination Versions; and 

  

	 	(e)	using the CoReUse standard and the Qcore tool, both identified in Annex G hereto, to qualify Transferred IP Blocks and any Successor Versions and Partial
Combination Versions as CoReUse-compliant in accordance with Seller’s guidelines referenced in Annex D. 

  

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	2.5	Patent License 

 Subject
to the terms and conditions of this Agreement (including clause 2.8), Seller hereby grants to VL C.V. a personal, non-exclusive, non-transferable (except as set forth in clause 11), perpetual, irrevocable, non-terminable, world-wide, royalty-free
and fully paid-up license under the Licensed Patents solely for the conduct of any of the Licensed Activities. 
  

	2.6	No obligation 

 For the
avoidance of doubt, Seller shall have no obligation under this Agreement to maintain or support after the Closing Date any of the items licensed or transferred by Seller or its Affiliates pursuant to this Agreement, including: (i) Transferred
Materials; (ii) Transferred IPRs; (iii) Transferred Patents; (iv) Licensed IPRs; (v) NXP Transferred Materials Patents; or (vi) NXP Successor Version Patents. 

 

	2.7	Delivery 

 Seller or one
or more of its Affiliates shall, upon the request of Purchaser, deliver the Licensed Materials to VL C.V. in accordance with the Umbrella Transitional Services Agreement, provided that Seller and its Affiliates shall have no obligation to
deliver any Licensed Materials hereunder to the extent that such Licensed Materials have been previously delivered to VL C.V. 
  

	2.8	Ownership; no other rights 

Seller (or its Affiliates as the case may be) retains all rights, title and interest in and to the Licensed Materials (including any
copies thereof and whether separate or combined with any other products), Licensed IPRs and Licensed Patents, and no ownership in or to the Licensed Materials, Licensed IPRs or Licensed Patents is transferred pursuant to this Agreement. Further, in
no event shall the licenses granted under clauses 2.4 and 2.5 above, or any other provision of this Agreement, be construed as granting Purchaser (or its Affiliates), expressly or by implication, estoppel or otherwise, any right or license to use
any of Seller’s (or any of its Affiliates’) Patents, technology or intellectual property rights other than those licenses to the Licensed Materials, Licensed IPRs and Licensed Patents to the extent expressly granted under clauses 2.4 and
2.5 above. 
  

	2.9	IP Blocks 

Notwithstanding anything herein to the contrary, it is understood and agreed that (x) unless otherwise specified on Annex A, B or C
hereto, sub-blocks, components or other constituent parts of those Transferred IP Blocks, Transferred IP Tools or Transferred Software that form part of 

 

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Transferred Materials, and the Transferred IPRs pertaining thereto, do not constitute part of such Transferred Materials or Transferred IPRs and are not being transferred or assigned hereunder
and (y) unless otherwise specified on Annex A, sub-blocks, components or other constituent parts of the Transferred IP Blocks that constitute Library Elements and the Licensed IPRs and the Licensed Patents pertaining thereto, taken in isolation
and without reference to or use in any such Transferred IP Block or Successor Version or Partial Combination Version relating thereto, are not being licensed hereunder. 

Notwithstanding the foregoing in this clause 2.9, Purchaser shall be free, and Seller hereby grants to Purchaser, the right to use for any
purpose the ***; provided however that Purchaser shall maintain the confidentiality of the Library Elements to the extent required under this Agreement. For the purpose of this clause 2.9, *** means *** in the *** of *** have had *** such *** by
such *** to *** such *** However, this clause 2.9 does not grant Purchaser any rights under any Intellectual Property Rights or Patents of Seller or its Affiliates. 
  

	2.10	Open Source 

 The license
granted to VL C.V. hereunder does not include the right to license, and neither Purchaser nor VL C.V. shall perform any actions in a manner that would require any software included in the Licensed IPRs or otherwise licensed hereunder to VL C.V., in
whole or in part, or any derivative work thereof to be licensed, under Open License Terms. 
  

	3	TRADEMARKS 

  

	3.1	License 

 Subject to the
terms and conditions of this Agreement, Seller hereby grants to Purchaser and to VL C.V. a personal, non-exclusive, non-transferable (except as set forth in clause 11 below), perpetual, irrevocable, worldwide, royalty-free, fully paid-up license to
use the NXP CoReUse Trademarks for the sole purpose of promoting, sublicensing, supplying, and providing maintenance and support services regarding, all in accordance with clause 2.4 above, the Transferred IP Blocks that have been certified by
Seller as CoReUse compliant at the Closing Date, as indicated in Annex A hereto and with respect to which such certification has not subsequently been withdrawn, it being understood that Seller may only withdraw such certification upon ninety
(90) days’ prior written notice to Purchaser. 
  

	3.2	Usage guidelines 

 The
license granted under clause 3.1 above is subject to Purchaser’s and VL C.V.’s strict compliance with Seller’s standard Trademark usage guidelines (the version of which effective as 

 

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 EXECUTION VERSION 

 

 of the Closing Date is attached as Annex J hereto), as they may be amended or modified
from time to time by Seller upon ninety (90) days’ prior written notice to Purchaser. Seller reserves the right to practice reasonable quality control with regard to Purchaser’s and VL C.V.’s use of the NXP CoReUse Trademarks and
any products and services marketed, sold or licensed by Purchaser or VL C.V. thereunder. 
  

	3.3	Ownership and no other license 

Purchaser and VL C.V. each acknowledges and agrees that: 
  

	 	(i)	all rights in and to the NXP CoReUse Trademarks are retained by Seller; 

  

	 	(ii)	Neither Purchaser nor VL C.V. will, now or in the future, contest the validity of the NXP CoReUse Trademarks; 

 

	 	(iii)	nothing in this Agreement will transfer ownership of the NXP CoReUse Trademarks; and 

 

	 	(iv)	Purchaser’s and VL C.V.’s respective use of the NXP CoReUse Trademarks will not create in either of them, nor will either of them represent it has, any right,
title or interest in or to the NXP CoReUse Trademarks other than the license expressly granted under clause 3.1 above, and all such use and goodwill associated thereby will inure to the benefit of Seller. 

 

	3.4	NXP mark restrictions 

Neither Purchaser nor VL C.V. shall make use of the word “NXP”, alone or in combination with another sign, as a trademark,
service mark, trade name or domain name or in any other way, and neither Purchaser nor VL C.V. shall make use of any other commercial or corporate indicia retained by Seller, except for the NXP CoReUse Trademarks in accordance with this clause 3.
Notwithstanding the foregoing or anything else in this Agreement to the contrary, Purchaser and VL C.V. shall have the right to use the word “NXP” and other commercial or corporate indicia retained by Seller as reasonably required to
describe the Transactions in connection with securities and other regulatory filings with any Governmental Authority. 
  

	4	PRIOR AND FUTURE SELLER COMMITMENTS AND UNDERTAKINGS 

All assignments, transfers and licenses to Purchaser or VL C.V. will be subject to all prior commitments and undertakings of Seller and/or
its Affiliates and to all commitments and undertakings set forth in clause 2.2. 
 Seller acknowledges and agrees that any
license, assignment, transfer or other grant of any rights to the Licensed IPRs, Licensed Materials, Licensed Patents and/or NXP CoReUse Trademarks by Seller or any of its Affiliates to any third party shall be subject to the rights granted to
either Purchaser or VL C.V. or both hereunder. 
  

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	5	ROYALTY 

  

	5.1	Royalty on Transferred Materials 

Purchaser will pay Seller a royalty of *** percent (***%) of all amounts received (including the fair market value of non-cash
consideration) by or on behalf of Purchaser or any of its Affiliates during the Royalty Term (or amounts invoiced during the Royalty Term and later received) in respect of the licensing of the Transferred Materials, in the exact form provided by
Seller to VL C.V. under this Agreement, to parties other than Purchaser or its Affiliates or Seller or its Affiliates. 
  

	5.2	Royalty on Successor Versions 

Purchaser will pay Seller a royalty of *** percent (***%) of (i) all amounts received (including the fair market value of
non-cash consideration) by or on behalf of Purchaser or any of its Affiliates during the Royalty Term (or amounts invoiced during the Royalty Term and later received) in respect of the licensing of any Successor Versions to parties other than
Purchaser or its Affiliates or Seller or its Affiliates, minus (ii) any costs and expenses *** by Seller or a third party) *** (the “Deductible Costs”). It is furthermore expressly understood that only a *** percent
(***%) deduction of such Deductible Costs will be applied in connection with modifications to Successor Versions that are designed to *** by or on behalf of ***. 
  

	5.3	Royalty on Combination Versions 

Purchaser will pay Seller a royalty of *** percent (***%) of all Allocable Combination Version Revenue received by or on behalf of
Purchaser or any of its Affiliates during the Royalty Term (or amounts invoiced during the Royalty Term and later received) in respect of the licensing of any Combination Version to parties other than Purchaser or its Affiliates or Seller or its
Affiliates. 
 For the purposes of this Section 5.3, “Allocable Combination Version Revenue” means amounts
received (including the fair market value of non-cash consideration) by or on behalf of Purchaser or any of its Affiliates on the Partial Combination Version portion of each Combination Version, calculated as follows: 

 

	 	(i)	 where such Partial Combination Version portion of such Combination Version constitutes Transferred Materials in the exact form provided by Seller to VL
C.V. under this 

  

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Agreement, the Allocable Combination Version Revenue shall be determined by multiplying the amounts received by or on behalf of Purchaser or any of its Affiliates from the licensing of such
Combination Version by the fraction *** where *** is Purchaser’s *** of *** of *** when *** and *** is the *** of the *** of *** that does not constitute a *** and 

 

	 	(ii)	where such Partial Combination Version portion of such Combination Version constitutes a Successor Version, the Allocable Combination Version Revenue shall be
determined by multiplying the revenue received by or on behalf of Purchaser or any of its Affiliates from the licensing of such Combination Version by the fraction *** where *** is Purchaser’s *** of *** of *** when *** (and after deduction of
the Deductible Costs in accordance with clause 5.2 above) and *** is the *** of the *** of *** that does not constitute a *** 

  

	5.4	Royalty Suspension (Restricted Activities) 

In the event that Seller or any of its Affiliates at any time during the Royalty Term licenses on a commercial basis electronic circuit
modules and related technology, software and tools for the design, maintenance, support, and manufacturing of IC Products with baseline CMOS (90 nanometres and smaller) technology that offer substantially the same functionality as any Transferred
Materials, Successor Versions or Partial Combination Version portion of Combination Versions (“Restricted Activities”), then during the time that Seller or any of its Affiliates is engaged in any such Restricted Activity (such time,
the “Suspension Period”), Purchaser shall have no obligation 
  

	 	(i)	to pay Seller any royalties under this clause 5 with respect to any amounts invoiced during the Suspension Period with respect to the Transferred Materials, Successor
Versions or Combination Versions, as applicable, that are subject to the Restricted Activity in which Seller or any of its Affiliates is then engaging or 

  

	 	(ii)	to make any payment to Seller pursuant to clause 5.6 below in connection with the sale, transfer of title, or assignment of ownership during the Suspension Period of
any of the Transferred Materials, Successor Versions or Combination Versions, as applicable, that are subject to the Restricted Activity in which Seller or any of its Affiliates is then engaging. 

It is understood and agreed that neither Seller nor any of its Affiliates will be deemed to be engaged in a Restricted Activity with
respect to licenses regarding which neither Seller nor any of its Affiliates are entitled to receive any further revenues therefrom or attributable thereto. For purpose of this clause 5.4, “commercial basis” shall not include Seller’s
or any of Seller’s Affiliates’ engagement in High Level IP Block licensing as set forth in clause 2.2 above, as long as Seller and each of its Affiliates is in material compliance with its payment obligations under Annex L hereto.

  

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	5.5	Royalty Off-setting (Transferred Materials Infringement Claims) 

  

	 	5.5.1	In the event that during the Royalty Term a claim, lawsuit or other legal proceeding is brought by a third party against Purchaser or any Purchaser Customer, to the
extent Purchaser is required to defend such customers, which and to the extent is based on a claim that the unmodified Transferred Materials and/or unmodified portion of Transferred Materials or Transferred Materials contained in a Successor Version
or Combination Version infringes a copyright, Patent or other Intellectual Property Right of a third party (“Transferred Materials Infringement Claim”), then, without prejudice to Seller’s obligation to defend and indemnify
Purchaser under Section 8.2 of the Asset Purchase Agreement, *** subject to clause 5.5.2 below, Purchaser may set-off payment of the royalties due to Seller under this clause 5 to use such royalties as a share of the cost of litigation and
activities conducted in connection with the analysis and defense of such claim (including reasonable attorneys’ fees, settlement costs and damage awards) and such other costs incurred in connection with clause 5.5.2 (including costs and
expenses attributable to any mitigation steps undertaken by Purchaser, such as, without limitation, acquiring a license to the asserted copyright(s), Patent(s) and/or other Intellectual Property Rights or developing a non-infringing modification or
replacement of the applicable Transferred Materials) solely, in each case, to the extent directly attributable to such Transferred Materials Infringement Claim (such costs together the “Transferred Materials Infringement Claim
Costs”). Notwithstanding anything herein to the contrary, nothing in this clause 5.5 is nor shall be construed to be *** of any kind for *** or any other *** 

 

	 	5.5.2	At any time that Purchaser sets-off the royalty payments pursuant to this clause 5.5, Purchaser and Seller agree that, in each such case, the following conditions shall
apply: 

  

	 	(a)	Purchaser shall deliver prior written notice to Seller of any actual or threatened Transferred Materials Infringement Claim with sufficient detail stating the
justification for setting-off the royalty payments including without limitation the third party claimant, the specific claims and the specific Transferred Materials that are subject to the claims, and shall include a copy of the lawsuit, complaint
or administrative proceeding notice of action. 

  

	 	(b)	 Purchaser and Seller shall discuss in good faith how to mitigate costs and damages and how to best address and amicably resolve such Transferred

  

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Materials Infringement Claim and what alternatives are reasonably available to achieve this, such as, by way of example, obtaining from any third party the necessary rights and licenses for the
Parties to continue to enjoy the benefits of this Agreement or modification or replacement of any of the Transferred Materials or portion thereof so that these become non-infringing while giving substantially equivalent performance or, when no such
alternative is reasonably available, how to reasonably support each other free of charge in the defense or settlement of such Transferred Materials Infringement Claim. Purchaser shall, if and to the extent obtained for the benefit of any Purchaser
Customer, obtain a release of liability of Seller and its Affiliates relating to such Transferred Materials Infringement Claim and a license for Seller and its Affiliates for the continued use of such Transferred Materials. Purchaser shall have the
right to control the defense and settlement of such Transferred Materials Infringement Claim, provided that, subject to clause 5.5.2(c) below, Seller shall have the right to meaningfully participate in (directly and through counsel of its own
choosing and at its sole cost) the strategies, tactics and direction of such defense and settlement relating to such Transferred Materials Infringement Claim. Purchaser shall not have the right to set-off the royalty payments if Seller is denied the
right to so participate in such defense and settlement. 

  

	 	(c)	Seller shall have the right to receive copies of all pleadings, notices, communications and other information with respect to the third-party lawsuit and proceedings,
and Purchaser shall inform Seller of any settlement discussions with respect to the third-party actions or claims. Notwithstanding the foregoing, Purchaser shall have no obligation to provide any document or information to Seller that is subject to
a protective order restricting such disclosure or is covered by attorney-client, attorney work product or similar privileges. 

  

	 	(d)	Seller shall reasonably cooperate with Purchaser with respect to the defense and settlement of the Transferred Materials Infringement Claims, including providing
documents and information that are relevant to such Transferred Materials Infringement Claims, and making its employees, if relevant, available on a mutually convenient basis to provide additional information and explanation of such documents
provided hereunder. Notwithstanding the foregoing, Seller shall have no obligation to provide any document or information to Purchaser that is subject to a protective order restricting such disclosure or is covered by attorney-client, attorney work
product or similar privileges. 

  

	 	(e)	In the event that any *** related to *** under *** of the *** set forth in *** of the ***, shall be applicable to such claims. 

 

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	 	(f)	During the period that any royalty payments are suspended under this clause 5.5, Purchaser shall provide Seller each calendar quarter an accurate accounting of all of
the royalty payments set off under this clause 5.5 and the amount of litigation costs and expenses actually incurred and paid by Purchaser with respect to the Transferred Materials Infringement Claims, and the related lawsuit and proceedings. Seller
shall have the right to audit at Purchaser’s headquarters all such records of Purchaser upon reasonable notice, and during Purchaser’s normal working hours at such facility. Purchaser shall make available to Seller at Purchaser’s
headquarters all records necessary for Seller to properly conduct such audit. 

  

	5.6	Transferred Materials 

 In
the event that Purchaser or any of its Affiliates directly or indirectly sells, transfers title to, or assigns ownership of any of the Transferred Materials, Successor Versions or Combination Versions to one or more third parties (including a
disposition by Purchaser or its relevant Affiliates of VL C.V.), other than (i) any of Purchaser’s Affiliates or Seller’s Affiliates or (ii) in connection with a merger, acquisition or change of control of Purchaser or a sale of
all or substantially all of the assets of Purchaser, as long as Seller remains entitled to receive royalties with respect to the applicable Transferred Materials, Successor Versions and/or Partial Combination Version portions of each Combination
Version in accordance with the terms of this clause 5 after the consummation of such transaction, during the Royalty Term, Purchaser shall pay Seller a percentage of amounts received by Purchaser or any of its Affiliates (including any contingent,
revenue share or similar payments earned or received during the Royalty Term) directly or indirectly from such third party or parties that are attributable to the applicable Transferred Materials, Successor Versions and/or Partial Combination
Version portions of each Combination Version, calculated in accordance with the methodology described in the last paragraph of clause 5.7 below and taking into account the remaining period in the Royalty Term as of the date of consummation of the
applicable sale, transfer of title or assignment of ownership. 
  

	5.7	Methodology 

 In the event
that in the same transaction or series of related transactions, Purchaser or any of its Affiliates licenses Transferred Materials, Successor Versions and/or Combination Versions and licenses or sells other products, software or services, the amount
to be allocated to such Transferred Materials, Successor Versions and/or Combination Versions shall be determined by multiplying the amount received by or on behalf of Purchaser or any of its Affiliates for all such Transferred Materials, Successor
Versions, Combination Versions and other products, software 
  

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 and services licensed or sold in such transaction or series of related transactions by
the fraction A/B where A is the combined list price of all such Transferred Materials, Successor Versions and/or Partial Combination Version portions of such Combination Versions when licensed separately and B is the combined list price of all such
Transferred Materials, Successor Versions, Combination Versions and other products, software and services when licensed or sold separately.  

List prices shall be determined at the time applicable amounts are invoiced. In establishing list prices, Purchaser acknowledges and
agrees that it will not disproportionately discount Transferred Materials, Successor or Partial Combination Versions as compared to Combination Versions. 

Where applicable, amounts under this clause 5 shall be calculated in accordance with U.S. generally accepted accounting principles.

 The fair market value of any non-cash consideration received by or on behalf of Purchaser or any of its Affiliates shall be
determined in accordance with U.S. generally accepted accounting principles as they relate to non-monetary transactions. 
 In
determining the amount attributable to the applicable Transferred Materials, Successor Versions and/or Partial Combination Version portions of Combination Versions for purposes of clause 5.6 above, Seller and Purchaser shall negotiate in good faith
the attributable amount for a period of thirty (30) days. If Seller and Purchaser are unable to agree on such attributable amount after such thirty (30) day period, Seller and Purchaser shall appoint a mutually acceptable independent,
internationally recognized appraisal, accounting or consulting firm that provides appraisal services to make such determination, which determination shall be provided to both Purchaser and Seller and will be binding on Purchaser and Seller. Subject
to execution of a non-disclosure agreement reasonably acceptable to Purchaser, Purchaser shall provide to any such mutually agreed firm access to its books and records and other materials and personnel to the extent reasonably necessary to determine
such attributable amount. 
  

	6	ROYALTY REPORTING AND AUDIT RIGHTS 

  

	6.1	Inspection of books and records 

Purchaser shall maintain accurate books and records which enable the calculation of royalties payable hereunder to be verified in
accordance with this clause 6.1. Purchaser shall retain the books and records for each quarterly period for four (4) years after the submission of the corresponding royalty report under clause 6.2 below. Upon no less than thirty
(30) days’ prior written notice to Purchaser, independent accountants selected by Seller, reasonably acceptable to Purchaser, after entering into a confidentiality agreement with Purchaser no materially less restrictive than Seller’s
confidentiality obligations hereunder, may have access to the books and 
  

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records of Purchaser to conduct, at Purchaser’s headquarters, a review or audit, no more often than once per calendar year (it being understood, for the avoidance of doubt, that more than
one (1) visit to such facilities may be required to complete a single audit), for the sole purpose of verifying the accuracy of the royalty reports submitted by Purchaser to Seller during the four (4) year period immediately preceding the
date of such review or audit. Purchaser shall make available to the auditors at Purchaser’s headquarters all books and records necessary for the auditors to properly conduct such review and audit. The accounting firm shall provide an audit
report to Seller, specifying whether there has been a royalty underpayment or overpayment (and, if so, the amount thereof), including its calculation per calendar quarter of royalties payable compared with royalties reported by Purchaser, aggregated
for Transferred Materials, Successor Versions and Combination Versions categories, respectively, and an itemized bridge calculation for any difference between said reported royalties and the payable royalties per such category. Such access shall be
permitted during Purchaser’s normal business hours during the Royalty Term and for two (2) years thereafter. Any such inspection or audit shall be at Seller’s expense, except if the audit results show underpayment by Purchaser of more
than five percent (5%) over the course of the entire period audited, in which case Purchaser will pay for the reasonable audit expenses incurred and documented by Seller within thirty (30) days of Seller’s itemized invoice therefor.
Purchaser shall pay to Seller any underpaid royalties promptly. Any overpayments by Purchaser revealed in such inspection or audit shall be credited to future royalties, unless the Royalty Term has expired in which case Seller shall promptly, but in
any event within forty-five (45) days of the issuance of the audit report, refund such overpaid amounts to Purchaser. Any records or accounting information received from Purchaser or its Affiliates during the course of any such inspection or
audit shall be deemed Purchaser’s Confidential Information under this Agreement. 
  

	6.2	Royalty reporting and payment 

Purchaser shall, within thirty (30) days following 31 March, 30 June, 30 September and 31 December of each
calendar year during the Royalty Term: (i) submit to Seller (even in the event that Purchaser has no payment obligations for the applicable quarter) its duly signed written statement in the form as Annex H hereto; and (ii) pay to Seller
the amounts due for that respective quarter. All amounts are in United States Dollars (USD), and Purchaser shall pay all amounts due to Seller hereunder by wire transfer into the bank account designated in Annex K or as otherwise designated by
Seller in writing. Purchaser shall not offset, withhold or reduce any payment(s) due to Seller. 
  

	6.3	Tax 

  

	 	6.3.1	 All amounts paid hereunder by Purchaser are gross amounts and shall be paid without withholding for or on account of any tax, but are exclusive
of any value added tax (VAT) or analogous tax only. If the transactions as described in this Agreement are subject to any applicable VAT or analogous tax, Seller shall provide Purchaser with a valid invoice that

  

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complies with local tax regulations and which specifically states this tax. Provided Seller has stated VAT or analogous tax (as identified above) on the applicable invoice Purchaser will pay to
Seller the VAT or analogous tax properly chargeable in respect of that payment. Purchaser reserves the right to withhold payment of VAT or analogous tax to Seller until Seller has provided Purchaser with a valid invoice which states such tax. If
Seller has incorrectly determined the amount of VAT chargeable to Purchaser, then the invoice shall be corrected and (a) where Purchaser has overpaid any amount, Seller will repay this amount plus interest to Purchaser and (b) where
Purchaser has paid less than the correct amount, Purchaser shall pay the outstanding amount to Seller upon receipt of a valid invoice. In the event that Purchaser is refused recovery of such input VAT by means of a deduction or refund by a taxing
authority, solely because of an incorrect initial invoice made out by Seller, Seller will repay such VAT plus interest except where such refusal has arisen as a result of an action (or inaction) by Purchaser in respect of compliance with local tax
legislation. 

  

	 	6.3.2	Seller shall deliver to Purchaser at the Closing a U.S. Internal Revenue Service Form W-8BEN claiming residence in the Netherlands for purposes of the
US/Netherlands Treaty, claiming the benefits of Article 13 of the US/Netherlands Treaty (related to royalties), and otherwise signed and completed to the reasonable satisfaction of Purchaser. 

 

	7	CONFIDENTIALITY 

  

	7.1	Confidential information 

Purchaser and VL C.V. acknowledge that any unpublished patent applications included in the Licensed Patents, any trade secrets or other
confidential information included in the Licensed Materials, Licensed IPRs, and Successor Versions and Combination Versions (solely insofar as the Successor Versions and Combination Versions incorporate all or part of the trade secrets included in
the Licensed IPRs) embody or contain valuable trade secrets and other confidential information of Seller (such trade secrets and other confidential information along with any unpublished patent applications included in the Licensed Patents and any
trade secrets or other confidential information included in the Licensed Materials, Licensed IPRs are collectively referred to as “Seller Confidential Information”). Seller acknowledges that the Transferred Materials, any
unpublished patent applications included in the Transferred Patents, any trade secrets or other confidential information contained in the Transferred IPRs, Successor Versions and Combination Versions embody or contain valuable trade secrets and
other confidential information of Purchaser and VL C.V. (such trade secrets and other confidential information along with the Transferred Materials, any unpublished patent applications included in the Transferred Patents and any trade secrets or
other confidential information included in the Transferred IPRs are collectively referred to as “Purchaser Confidential Information”). Purchaser, Seller and VL C.V. (each a “Receiving Party”) will not use the Seller
Confidential Information or the Purchaser Confidential Information, as applicable (the “Confidential Information”), for any purpose not expressly permitted by this Agreement, and may disclose the other Party’s Confidential

  

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Information only to those of its employees, permitted sublicensees and other authorized third parties who have a strict need to know such Confidential Information for purposes of exploiting the
licenses granted to such Party under this Agreement and who are under a written obligation of confidentiality no less restrictive than the Receiving Party’s confidentiality obligations hereunder. The Receiving Party will protect the other
Party’s Confidential Information from unauthorized use, access and disclosure in the same manner as the Receiving Party protects its own confidential or proprietary information of a similar nature and with no less than reasonable care.

  

	7.2	Exceptions 

 The Receiving
Party’s obligations under clause 7.1 shall not apply to any information if and to the extent the Receiving Party can document that such information: 
  

	 	(a)	was already lawfully known to the Receiving Party at the time of initial disclosure by the other Party (expressly excluding, where Seller or any of its Affiliates is
the Receiving Party, the Transferred Materials, any unpublished patent applications included in the Transferred Patents, and any trade secrets or other confidential and proprietary information contained in the Transferred IPRs (including as such
trade secrets and other confidential and proprietary information may be included, incorporated or embodied in Successor Versions and Combination Versions); 

 

	 	(b)	was disclosed to the Receiving Party by a third party who had the right to make such disclosure without any confidentiality restrictions (including the confidentiality
restrictions set forth herein or in any other Ancillary Agreement); 

  

	 	(c)	is, or through no fault of the Receiving Party has become, generally available to the public; or 

 

	 	(d)	is independently developed by the Receiving Party without use of or reference to the other Party’s Confidential Information. In addition, the Receiving Party will
be allowed to disclose Confidential Information of the other Party to the extent that such disclosure is: 

  

	 	(i)	expressly approved in writing by the other Party prior to such disclosure; 

 

	 	(ii)	necessary for the Receiving Party to enforce its rights under this Agreement in connection with a legal proceeding, provided that the Receiving Party shall, prior to
disclosure and at its own expense, seek a protective order appropriate to preserve the other Party’s rights in the confidential nature of the Confidential Information; or 

 

	 	(iii)	 required by law or by the order or a court of similar judicial or administrative body, provided that the Receiving Party notifies the other Party of
such required 

  

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disclosure promptly and in writing and cooperates with the other Party, at the other Party’s reasonable request and expense, in any lawful action to secure a protective order appropriate to
preserve the other Party’s rights in the confidential nature of the Confidential Information or otherwise to contest or limit the scope of such required disclosure. 

 

	8	REPRESENTATIONS AND WARRANTIES; DISCLAIMER 

  

	8.1	This Agreement is subject to and the Parties are the beneficiaries of the representations, warranties and covenants set forth in the Asset Purchase Agreement.

  

	8.2	Seller Tax Representations 

In addition to the representations, warranties and covenants set forth in the Asset Purchase Agreement, Seller hereby represents and
warrants to Purchaser as follows: 
  

	 	(a)	Seller is a resident of the Kingdom of the Netherlands for purposes of the US/Netherlands Treaty and is entitled to all of the benefits thereof without
limitation by Article 26 thereof (entitled “Limitation on Benefits”). 

  

	 	(b)	Seller does not have a permanent establishment in the United States for purposes of the US/Netherlands Treaty, and no royalty to be received by it pursuant to
this Agreement will be attributable to such a permanent establishment for purposes of the US/Netherlands Treaty. 

  

	8.3	Disclaimer 

 EXCEPT AS
OTHERWISE EXPRESSLY PROVIDED IN THE ASSET PURCHASE AGREEMENT, ALL TECHNOLOGY, INTELLECTUAL PROPERTY AND OTHER MATERIALS OR INFORMATION ASSIGNED, TRANSFERRED OR LICENSED HEREUNDER ARE ASSIGNED, TRANSFERRED OR LICENSED, AS THE CASE MAY BE, ON AN
“AS IS” BASIS AND WITHOUT ANY WARRANTY OF ANY TYPE. SELLER’S SOLE LIABILITY AND PURCHASER’S AND VL C.V.’s SOLE REMEDY WITH RESPECT TO ANY PATENT INFRINGEMENT OR ANY OTHER CLAIM OF INFRINGEMENT OR MISAPPROPRIATION MADE BY ANY
THIRD PARTY ON ACCOUNT OF, OR ARISING FROM THE USE OR PRACTICE OF ANY TECHNOLOGY, INTELLECTUAL PROPERTY OR OTHER MATERIALS OR INFORMATION ASSIGNED, TRANSFERRED OR LICENSED HEREUNDER SHALL BE AS SET FORTH IN THE ASSET PURCHASE AGREEMENT AND IN THE
ROYALTY SUSPENSION CLAUSE IN CLAUSE 5.5 HEREOF. 
  

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	9	INFRINGEMENT INDEMNITY AND LIMITATION OF LIABILITY 

  

	9.1	Indemnity by Purchaser 

  

	 	9.1.1	Duty to Indemnify and Defend 

Purchaser shall indemnify and hold harmless Seller against, and will defend or settle at Purchaser’s own expense, subject to the
limitations stated in clauses 9.2 and 9.3 below and, to the extent applicable, the provisions of Sections 8.6 and 8.7 of the Asset Purchase Agreement, any action or other proceeding brought against Seller, its Affiliates or their respective
directors, officers, shareholders or employees (each a “Seller Indemnified Party”) to the extent that it is based on a claim that any Successor Version or Combination Version, or a portion of either one (each, a
“Purchaser Indemnified Version”) infringes or misappropriates a copyright, Patent or other Intellectual Property Right of a third party. Purchaser will pay any damages (including attorneys’ fees) awarded against the
Seller Indemnified Party in any such action or proceeding and any costs and expenses (including reasonable attorneys’ fees) incurred by the Seller Indemnified Party to the extent attributable to any such claim, subject to the limitations stated
in clauses 9.3 and 9.4 below. Seller agrees to provide Purchaser with prompt notice of any action or other proceeding brought against a Seller Indemnified Party for which such Seller Indemnified Party has indemnification rights hereunder,
provided that the failure to provide such prompt notice shall not relieve Purchaser of its indemnification obligations hereunder except to the extent it is materially prejudiced thereby. Seller hereby agrees, and Seller shall procure that
each other Seller Indemnified Party shall agree as a condition of being indemnified hereunder, that Purchaser will have the sole right to control the defense and settlement of any such action or other proceeding hereunder, provided that the Seller
Indemnified Party may participate in the defense and settlement with its own attorneys at its expense, and provided, further, that Purchaser shall not be liable for or obligated under any compromise or settlement of such claim, action or proceeding
without its prior written consent not to be unreasonably withheld or delayed. At Purchaser’s reasonable request, each Seller Indemnified Party shall provide Purchaser with reasonable assistance, at Purchaser’s expense, in its defense and
settlement of such action, proceeding or claim. 
  

	 	9.1.2	Injunctions  

 If
Seller’s use of any Successor Version(s) and/or Combination Version(s) under the terms of this Agreement is, or in Purchaser’s reasonable opinion is likely to be, enjoined due to the type of infringement or misappropriation specified in
clause 9.1.1 above, which is not subject to any exclusion set forth in subsection 9.1.4 below, then Purchaser shall, at its sole option and expense, subject to clause 9.3 below, either: 

 

	 	(i)	procure for each Seller and its Affiliates the right to continue using such Successor Version(s) and/or Combination Version(s) or any Purchaser Indemnified Versions,
under the terms of this Agreement; or 

  

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	 	(ii)	replace or modify such Successor Version(s) and/or Combination Version(s), or any Purchaser Indemnified Versions, so that they are noninfringing and substantially
equivalent in function to the Successor Version(s) and/or Combination Version(s), or any Purchaser Indemnified Versions, subject to, or potentially subject to, an injunction. 

Upon Purchaser’s successful performance of 9.1.2(i) or (ii) above, Purchaser’s liability under clause 9.1.1 above with
respect to the applicable claim shall terminate with respect to all damages, costs and expenses related to the continued use of the unaltered Successor Version(s) and/or Combination Version(s) after the date of such performance, or, in the case of
clause 9.1.2(ii) after Seller has had a reasonable opportunity, in light of the applicable circumstances, to implement the replaced or modified Successor Version(s) and/or Combination Version(s). 

 

	 	9.1.3	Sole Remedy  

 THE
FOREGOING ARE PURCHASER’S SOLE AND EXCLUSIVE OBLIGATIONS, AND SELLER’S SOLE AND EXCLUSIVE REMEDIES, WITH RESPECT TO INFRINGEMENT OR MISAPPROPRIATION OF PATENTS OR INTELLECTUAL PROPERTY RIGHTS UNDER THIS AGREEMENT. 

 

	 	9.1.4	Exclusions  

 Purchaser
shall have no obligations under this clause 9.1 to the extent that the infringement or misappropriation arises from: 
  

	 	(i)	the Transferred Materials or Licensed Materials, standing alone (and not in combination, operation or use with other software, apparatus, data, technology or materials,
except where the infringement or misappropriation does not arise from such combination, operation or use); 

  

	 	(ii)	any modification(s) to any Transferred Material(s), Successor Version(s) and/or Combination Version(s) made by Seller, any of its Affiliates, any Divested Company, ***,
any of their respective sublicensees or any Person on behalf of any of the foregoing; 

  

	 	(iii)	 Purchaser’s compliance with modifications requested by Seller or any of its Affiliates (or any Divested Company, *** through Seller or any of its

  

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Affiliates) to any Transferred Material(s), Successor Version(s) and/or Combination Version(s) that comply with specifications or implementation instructions provided by Seller or any of its
Affiliates (or any Divested Company, *** through Seller or any of its Affiliates) under a Statement of Work pursuant to the Technology Services Agreement, to the extent such compliance with the specifications or instructions could not be achieved
without infringing or misappropriating the rights of a third party; 

  

	 	(iv)	any instantiations of any Transferred Material(s), Successor Version(s) and/or Combination Version(s) generated by Seller, any of its Affiliates, any Divested Company,
*** or any Person on behalf of any of the foregoing, except, solely with respect to Successor Version(s) and/or Combination Version(s), to the extent such infringement or misappropriation existed in such Successor Version(s) and/or Combination
Version(s) in the form delivered by Purchaser to Seller; 

  

	 	(v)	any use of any Transferred Material(s), Successor Version(s) and/or Combination Version(s) in combination with products or technology not provided by Purchaser if such
infringement would not have arisen but for such combination or use; 

  

	 	(vi)	any failure to implement a revision to any Successor Version(s) and/or Combination Version(s) delivered by Purchaser to Seller, which if implemented, would have avoided
the infringement or misappropriation, provided that the revision is given to Seller free of charge with reasonable time, in light of the applicable circumstances, to implement it and does not substantially alter the functionality of the Successor
Version(s) and/or Combination Version(s); or 

  

	 	(vii)	any NXP Material(s) licensed or sublicensed to Purchaser under the Technology Services Agreement, standing alone (and not in combination, operation or use with other
software, apparatus, data, technology or materials, except where the infringement or misappropriation does not arise from such combination, operation or use). 

 

	9.2	EXCEPT FOR A BREACH OF THE LICENSE GRANTS AND RESTRICTIONS UNDER CLAUSES 2.2, 2.4 AND 2.5, THE PAYMENT OBLIGATIONS UNDER CLAUSE 6.2, OR CONFIDENTIALITY UNDER
CLAUSE 7, AND TO THE EXTENT ALLEGED IN THIRD PARTY CLAIMS COVERED BY INDEMNIFICATION OBLIGATIONS UNDER CLAUSE 9.1, NEITHER PARTY SHALL BE LIABLE FOR ANY LOSS OF PROFITS, LOSS OF USE, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF ANY
BREACH OR FAILURE UNDER THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE PARTIES ACKNOWLEDGE THAT THESE LIMITATIONS ON POTENTIAL LIABILITIES ARE AN ESSENTIAL ELEMENT IN THIS AGREEMENT. 

 

 Page 33/38 

 EXECUTION VERSION 

 

	9.3	EXCEPT FOR A BREACH OF THE LICENSE GRANTS AND RESTRICTIONS UNDER CLAUSES 2.2, 2.4 AND 2.5, THE PAYMENT OBLIGATIONS UNDER CLAUSE 6.2, OR CONFIDENTIALITY UNDER
CLAUSE 7, AND PURCHASER’S OBLIGATIONS UNDER CLAUSE 9.1, IN NO EVENT SHALL EITHER PARTY’S LIABILITY UNDER THIS AGREEMENT EXCEED TWO MILLION U.S. DOLLARS (US$2,000,000) (IT BEING UNDERSTOOD THAT THE CIRCUMSTANCES FOR WHICH REMEDIES ARE
AVAILABLE TO PURCHASER PURSUANT TO CLAUSES 5.4 AND 5.5 SHALL NOT BE DEEMED LIABILITIES OF SELLER THAT ARE SUBJECT TO THE FOREGOING LIMITATION). PURCHASER’S LIABILITY FOR ITS OBLIGATIONS UNDER CLAUSE 9.1 ABOVE, SHALL, IN CONJUNCTION WITH
PURCHASER’S OBLIGATIONS UNDER SECTION 7.1 OF THE TECHNOLOGY SERVICES AGREEMENT, NOT EXCEED AN AGGREGATE OF FIVE MILLION U.S. DOLLARS (US$5,000,000). THESE LIMITATIONS OF LIABILITY ARE CUMULATIVE AND NOT PER INCIDENT. FOR PURPOSES OF
CLARIFICATION, WITH RESPECT TO PURCHASER’S OBLIGATIONS UNDER CLAUSE 9.1 ABOVE AND SECTION 7.1 OF THE TECHNOLOGY SERVICES AGREEMENT, THE COMBINED LIABILITY UNDER THIS AGREEMENT AND THE TECHNOLOGY SERVICES AGREEMENT SHALL NOT EXCEED FIVE MILLION
U.S. DOLLARS (US$5,000,000), IN THE AGGREGATE. FURTHERMORE THE EXCLUSIONS AND LIMITATIONS OF LIABILITY SET FORTH IN THIS CLAUSE 9.3 DO NOT APPLY IN CASE OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR INTENTIONAL BREACH, OR IN CASE OF PERSONAL INJURY
OR DEATH. 

  

	10	TERM AND TERMINATION 

  

	10.1	Effective Date 

 This
Agreement shall become effective as from the Closing Date and continue in full force and effect in accordance with its terms unless and until terminated by mutual agreement of the Parties. The rights and obligations of the Parties which by their
nature would continue beyond termination of this Agreement shall survive and continue after any termination of this Agreement for as long as necessary to permit their full discharge. 

 

	11	ASSIGNMENT 

 Neither
Purchaser nor VL C.V. may assign or transfer this Agreement or any of its rights or obligations hereunder without the prior written consent of Seller; provided, however, that either Purchaser or VL C.V. may assign this Agreement, in whole but not in
part, along with all its rights and obligations hereunder (i) to an Affiliate of Purchaser or (ii) to a third party as part of a merger, acquisition or sale of Purchaser or substantially all of the business or assets of Purchaser related
to the subject matter of this Agreement without such consent. Seller may not in whole or in part assign or transfer this Agreement or any of its rights or obligations hereunder without the prior written consent of Purchaser; provided, however, that
Seller may assign this Agreement, in whole but not in part, and all of its rights and obligations hereunder (i) to an Affiliate of Seller or (ii) to a 

 

 Page 34/38 

 EXECUTION VERSION 

 

 
third party as part of a merger, acquisition or sale of Seller or substantially all of the business or assets of Seller related to the subject matter of this Agreement without such consent, as
long as the third party involved in such a merger, acquisition or sale is not a Purchaser Competitor. 
  

	12	APPLICABLE LAW; DISPUTE RESOLUTION PROCEDURE 

  

	12.1	Applicable law and dispute resolution 

This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York applicable to
contracts entered into and performed under the laws of the State of New York, without giving effect to such laws whose application would result in the application of the laws of another jurisdiction. 

 

	 	(i)	Any claims or causes of action arising out of or in connection with this Agreement (“Claims”) that relate to any Patent matter that is within the jurisdiction
of the United States Court of Appeals for the Federal Circuit will be brought solely in the federal courts in the Southern District of New York or, if said court lacks subject matter jurisdiction, then in the Supreme Court of the State of New York,
County of New York. Each Party hereby submits to the personal jurisdiction and venue of such courts and agrees to receives service of process at its address set forth herein. 

 

	 	(ii)	With respect to all Claims other than those specified in clause (i) above, clauses 13.2 through 13.9 of the Asset Purchase Agreement are hereby incorporated by
reference and made a part hereof as if fully set forth herein, provided that this clause 12.1 shall not preclude a Party from pursuing an action in any court of competent jurisdiction for the sole purpose of obtaining injunctive or similar relief in
the case of a breach of clause 2 or clause 7 hereof. 

  

	 	(iii)	If Claims are raised that fall within both clause 12.1(i) above and clause 12.1(ii) above, the Parties will resolve the Claims falling within clause 12.1(i) above
first, and then proceed with the remaining claims under clause 12.1(ii) above. The Parties agree that a final or the unappealed judgment of any Claims under clause 12.1(i) above (a “Final Judgment”) may be submitted to any court of
competent jurisdiction within the Netherlands (or in any other jurisdiction), that such Final Judgment may be enforced by such court, and that neither Party will object to the enforcement by such court of such Final Judgment. Further, a Final
Judgment may be taken by the prevailing party to the arbitrator handling any Claims under clause 12.1(ii) above. 

  

 Page 35/38 

 EXECUTION VERSION 

 

	13	MISCELLANEOUS 

  

	13.1	Entire Agreement 

 This
Agreement and the documents, instruments and other agreements specifically referred to herein or therein or delivered pursuant hereto, including all Annexes hereto, constitute the entire agreement of the Parties with respect to the subject matter
hereof and supersede all prior agreements, term sheets, letters of interest, correspondence (including e-mail) and undertakings, both written and oral, between Seller, on the one hand, and Purchaser, on the other hand, with respect to the subject
matter hereof. 
  

	13.2	Amendment 

 Subject to
applicable law, the Parties may amend this Agreement at any time in accordance with an instrument in writing signed on behalf of each of the Parties. 
  

	13.3	Notices 

 All notices and
other communications hereunder will be in writing and deemed to have been duly given if given in accordance with the provisions of the Asset Purchase Agreement. 
  

	13.4	Severability 

 If any term
or provision of this Agreement or the application of any such term or provision to any Person or circumstance is held by final judgment of a court of competent jurisdiction or arbiter to be invalid, illegal or unenforceable in any situation in any
jurisdiction, all other conditions and provisions of this Agreement will nevertheless remain in full force and effect. If the final judgment of such court or arbitrator declares that any term or provision hereof is invalid, void or unenforceable,
the parties agree to, as applicable, (i) reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases, or (ii) replace any invalid, illegal or unenforceable term or provision with a term
or provision that is valid and enforceable and that comes closest to expressing the original intention of the invalid, illegal or unenforceable term or provision. 
  

	13.5	Extension; Waiver 

 Any
Party hereto may, to the extent legally allowed, waive compliance with any of the agreements or conditions for the benefit of such Party contained herein. Any agreement on the part of a Party hereto to any such waiver will be valid only if set forth
in an instrument in writing signed on behalf of such Party. Without limiting the generality or effect of the preceding sentence, no delay in exercising any right under this Agreement will constitute a waiver of such right, and no waiver of any
breach or default will be deemed a waiver of any other breach or default of the same or any other provision in this Agreement. 
  

 Page 36/38 

 EXECUTION VERSION 

 

	13.6	No Third-Party Beneficiaries 

This Agreement is for the sole benefit of the Parties, their permitted assigns, Affiliates and permitted sublicensees, and nothing herein,
express or implied, is intended to or will confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 

 

	13.7	Costs 

 Except as
otherwise expressly provided in this Agreement, all costs and expenses incurred in connection with this Agreement shall be borne by the Party incurring such costs and expenses, whether or not the Transaction is consummated. 

 

	13.8	Independent contractors 

The Parties are and intend to remain independent contractors. Nothing contained in this Agreement shall be deemed or construed to
constitute or create an agency, association, joint venture or partnership between the Parties, and neither Party shall have authority to act in the name of or on behalf of or otherwise to bind the other Party in any way, including the making of any
representation or warranty, the assumption of any obligation or liability and the exercise of any right or power. 
  

	13.9	Export control 

 Each
Party acknowledges that the technology transferred, assigned or licensed hereunder, including documentation and technical data, may be subject to export control regulations. Neither Party shall export or re-export (directly or indirectly) any
technology or other materials transferred, assigned or licensed to it hereunder without complying with applicable export regulations, and upon request, each Party shall provide reasonable assistance to the other Party with respect to such
compliance. 
  

 Page 37/38 

 EXECUTION VERSION 

 

	13.10	Language 

 This Agreement
and all documents and notices issued under the terms of this Agreement shall be in the English language. Any translation into another language is for the convenience of the Parties only. 

 

	13.11	Counterparts 

 This
Agreement may be executed in two (2) counterparts, and by each of the Parties in separate counterparts, each of which when executed will be deemed to be an original but both of which taken together will constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Agreement by telecopy or by electronic delivery in Adobe Portable Document Format will be effective as delivery of a manually executed counterpart of this Agreement. 

[SIGNATURE PAGES FOLLOW] 
  

 Page 38/38 

			
	 AGREED AND SIGNED ON NOVEMBER 16 2009 BY:

 
 NXP B.V., as Seller

		
	By:	 	/S/    KARL HENRIK SUNDSTRÖM
	 Name: Karl Henrik Sundström

	 Title: EVP and Chief Financial Officer

 

			
	By:	 	/S/    GUIDO DIERICK
	 Name: Guido Dierick

	 Title: SVP and General Counsel

 

			
	 Virage Logic Corporation, as Purchaser

		
	By:	 	/S/    ALEXANDER SHUBAT
	 Name: Alexander Shubat

	 Title: President and Chief Executive Officer

 

			
	 AGREED AND SIGNED ON NOVEMBER 16 2009 BY:

 
 VL C.V.

 
 By: Virage Logic International, its general partner

		
	By:	 	/S/    BRIAN SEREDA
	 Name: Brian Sereda

	 Title: Chief Financial Officer

 

  Annex A (part 1) – IPTLA – Transferred IP Blocks 

*** 

  Annex A (part 2) – IPTLA – Transferred IP Blocks 

*** 

  Annex B – IPTLA – Transferred IP Tools 

*** 

  Annex C (part 1) – IPTLA – Transferred Software 

*** 

  Annex C (part 2) – IPTLA – Transferred Software 

*** 

  Annex D – IPTLA – Transferred Patents 

*** 

  Annex E – IPTLA – CoReUse Documentation 

*** 

  Annex F – IPTLA – NXP CoReUse Trademarks 

*** 

  Annex G – IPTLA – NXP Tools 

*** 

  Annex H – IPTLA – Royalty Reporting 

*** 

 Annex I – IPTLA – Purchaser Competitors 

*** 
 Any Affiliate of any of
the foregoing Persons, any Person holding directly or directly more than 50 percent of the nominal value of the share capital or more than 50 percent of the voting power at general or special meetings of shareholders of the foregoing Persons, any
Person acquiring all or substantially all of the assets of any of the foregoing Persons or the surviving entity of any merger to which such Person is a party or constituent entity. 

 

 1 / 1 

  Annex J – IPTLA – Seller’s Trademark Usage Guidelines

  *** 

  Annex K – IPTLA – Seller’s Designated Bank Account

  *** 

 Annex L – IPTLA - High-Level IP Block Obligations and Restrictions

 1. License Fees: For the first *** sublicenses with respect to High-Level IP Blocks under clause
2.2(b)(iii) of the Intellectual Property Transfer and License Agreement, Seller shall not be obligated to pay Purchaser any fees with respect thereto. Thereafter, Seller and Purchaser shall negotiate in good faith and mutually determine the fee for
any additional sublicenses entered into pursuant to clause 2.2(b)(iii) on a case by case basis; provided that any such sublicense fee shall not be in excess of *** percent (***%) of the list price of the Purchaser Licensed
IP embodied in the relevant High Level IP Block. 
 2. Timing of Sublicense Fee Payments: With respect to those sublicenses
for which Seller is obligated to pay Purchaser a fee hereunder, Seller shall notify Purchaser promptly of its receipt of fees from a sublicense entered into pursuant to clause 2.2(b)(iii) of the Intellectual Property Transfer and License Agreement.
Seller shall pay the fees due to Purchaser in accordance with paragraph 1 of this Annex L within forty-five (45) days after Seller’s receipt of fees from such sublicense. 

 Annex M – IPTLA – Revenue Sharing Deductible Costs 

 

							
	 Class of Expense
	  	 Direct
	  	 Indirect
	  	 Deductible
costs

				
	 Salary
	  	 ***
	  	***	  	 ***

				
	 Vacation Accrual Expense
	  	 ***
	  	 ***
	  	 ***

	 PTO
	  	 ***
	  	 ***
	  	 ***

				
	 Medical Insurance
	  	 ***
	  	 ***
	  	 ***

				
	 Dental Insurance
	  	 ***
	  	 ***
	  	 ***

				
	 Vision Insurance
	  	 ***
	  	 ***
	  	 ***

				
	 Other Benefits
	  	 ***
	  	 ***
	  	 ***

	 Cobra Expense
	  	 ***
	  	 ***
	  	 ***

	 Benefits Allocations Out
	  	 ***
	  	 ***
	  	 ***

				
	 Employee Insurance
	  	 ***
	  	 ***
	  	 ***

				
	 Fitness & Other Benefits
	  	 ***
	  	 ***
	  	 ***

				
	 Benefits
	  	 ***
	  	 ***
	  	 ***

				
	 Payroll Taxes
	  	 ***
	  	 ***
	  	 ***

				
	 Payroll Tax
	  	 ***
	  	 ***
	  	 ***

				
	 Severance Expense
	  	 ***
	  	 ***
	  	 ***

	 Severance
	  	 ***
	  	 ***
	  	 ***

				
	 Bonus Expense
	  	 ***
	  	 ***
	  	 ***

	 Gratuity
	  	 ***
	  	 ***
	  	 ***

	 Bonus
	  	 ***
	  	 ***
	  	 ***

				
	 Commission Expense
	  	 ***
	  	 ***
	  	 ***

	 Commission
	  	 ***
	  	 ***
	  	 ***

				
	 Relocations
	  	 ***
	  	 ***
	  	 ***

	 Relocation
	  	 ***
	  	 ***
	  	 ***

				
	 Auto Allowance
	  	 ***
	  	 ***
	  	 ***

	 Other Compensation
	  	 ***
	  	 ***
	  	 ***

									
	Subtotal Compensation	  		  		  		  	
	  
 Deprec - Furniture & Fixtures
	  	***	  	 ***
	  	***	  
	Deprec - Computers & Equipment	  	 ***
	  	 ***
	  	 ***
	  
	Deprec - Software	  	 ***
	  	 ***
	  	 ***
	  
	Deprec - Building	  	 ***
	  	 ***
	  	 ***
	  
	Deprec - Leasehold Improvement	  	 ***
	  	 ***
	  	 ***
	  
	Amort - Intangibles - Patents	  	 ***
	  	 ***
	  	 ***
	  
	Amort - Intangibles - Goodwill	  	 ***
	  	 ***
	  	 ***
	  
	Depreciation & Amortization	  	 ***
	  	 ***
	  	 ***
	  
	  
 Subcon/Consulting
	  	 ***
	  	 ***
	  	 ***
	  
	  
 Outside Services
	  	 ***
	  	 ***
	  	 ***
	  
	  
 Consulting
	  	 ***
	  	 ***
	  	 ***
	  
	  
 Lodging
	  	 ***
	  	 ***
	  	 ***
	  
	Travel Meals	  	 ***
	  	 ***
	  	 ***
	  
	Auto Rental and Rental Gas	  	 ***
	  	 ***
	  	 ***
	  
	Transportation & Airfare	  	 ***
	  	 ***
	  	 ***
	  
	Travel Telecom	  	 ***
	  	 ***
	  	 ***
	  
	Taxi/shuttle/tips/parking toll	  	 ***
	  	 ***
	  	 ***
	  
	Other Exp.-Visa's/Medical	  	 ***
	  	 ***
	  	 ***
	  
	Auto Expense & Mileage	  	 ***
	  	 ***
	  	 ***
	  
	Business Meals	  	 ***
	  	 ***
	  	 ***
	  
	Entertainment	  	 ***
	  	 ***
	  	 ***
	  
	Meetings	  	 ***
	  	 ***
	  	 ***
	  
	Company Events	  	 ***
	  	 ***
	  	 ***
	  
	Special Events-T&E	  	 ***
	  	 ***
	  	 ***
	  
	Employee Meals	  	 ***
	  	 ***
	  	 ***
	  
	Employee Meals Off-Site	  	 ***
	  	 ***
	  	 ***
	  
	Travel and Entertainment	  	 ***
	  	 ***
	  	 ***
	  
	  
 Benefit Plan Fees
	  	 ***
	  	 ***
	  	 ***
	  
	Payroll Service Fees	  	 ***
	  	 ***
	  	 ***
	  
	Accounting & Auditing	  	 ***
	  	 ***
	  	 ***
	  
	Bank Fees	  	 ***
	  	 ***
	  	 ***
	  
	Insurance - General Liab	  	 ***
	  	 ***
	  	 ***
	  
	Insurance - D & O	  	 ***
	  	 ***
	  	 ***
	  
	Transfer Agent	  	 ***
	  	 ***
	  	 ***
	  
	Public Filings	  	 ***
	  	 ***
	  	 ***
	  
	Investor Relations	  	 ***
	  	 ***
	  	 ***
	  
	Professional Services	  	 ***
	  	 ***
	  	 ***
	  
	  
 Legal-Corporate
	  	 ***
	  	 ***
	  	 ***
	  

									
	Legal - Patents	  	***	  	 ***
	  	***	  	
	Legal-Immigration	  	***	  	 ***
	  	***	  
	Legal Services	  	***	  	 ***
	  	***	  
	  
 Equipment Lease
	  	***	  	 ***
	  	***	  
	Equipment Expenses	  	***	  	 ***
	  	***	  
	Equipment	  	***	  	 ***
	  	***	  
	  
 Freight
	  	***	  	  
 ***
	  	***	  
	Postage	  	***	  	 ***
	  	***	  
	Office Supplies	  	***	  	 ***
	  	***	  
	Cafeteria Supplies	  	***	  	 ***
	  	***	  
	Supplies	  	***	  	 ***
	  	***	  
	  
 Advertising & Promotion
	  	***	  	  
 ***
	  	***	  
	Collateral	  	 ***
	  	 ***
	  	 ***
	  
	Public Relations	  	***	  	 ***
	  	 ***
	  
	Trade Shows/Exhibition	  	***	  	  
 ***
	  	 ***
	  
	Website	  	***	  	 ***
	  	 ***
	  
	Partner Marketing Programs	  	***	  	 ***
	  	 ***
	  
	Industry Assoc Sponsorships	  	***	  	 ***
	  	 ***
	  
	Market Research	  	***	  	 ***
	  	 ***
	  
	Marcom	  	***	  	 ***
	  	 ***
	  
	  
 Software Expenses
	  	  
 ***
	  	***	  	  
 ***
	  
	Software Maint	  	 ***
	  	***	  	 ***
	  
	Software License Fees	  	 ***
	  	  
 ***
	  	 ***
	  
	SW Expense	  	 ***
	  	***	  	 ***
	  
	  
 Cell Phone
	  	***	  	  
 ***
	  	***	  
	Telephone	  	***	  	 ***
	  	***	  
	Maintenance & Repairs	  	***	  	 ***
	  	***	  
	Rent - Office	  	***	  	  
 ***
	  	***	  
	Rent - Common Area Maint	  	***	  	 ***
	  	***	  
	Lease Termination	  	***	  	 ***
	  	***	  
	Offsite-Storage	  	***	  	  
 ***
	  	***	  
	Office Move and Related Exp.	  	***	  	 ***
	  	***	  
	Property Tax	  	***	  	 ***
	  	***	  
	Janitorial Expense	  	***	  	  
 ***
	  	***	  
	Security	  	***	  	 ***
	  	***	  
	Utilities	  	***	  	 ***
	  	***	  
	Facilities	  	***	  	  
 ***
	  	***	  
	  
 Internet Connect
	  	***	  	  
 ***
	  	***	  
	MIS	  	***	  	 ***
	  	***	  

							
	Test Chip Cost	  	 ***
	  	***	  	 ***

	Test Chip	  	 ***
	  	***	  	 ***

				
	Rep. Commission	  	***	  	***	  	***
	External Commission	  	 ***
	  	***	  	***
				
	Recruiting Expense	  	***	  	 ***
	  	***
	Recruiting	  	***	  	 ***
	  	***
				
	Workers’ Compensation	  	***	  	 ***
	  	***
	Seminars & Education	  	***	  	 ***
	  	***
	Subscriptions & Dues	  	***	  	 ***
	  	***
	Other Expenses	  	***	  	 ***
	  	***
	Employee Welfare	  	***	  	 ***
	  	***
	Internal Communication	  	***	  	 ***
	  	***
	Custom / Duty Tax	  	***	  	 ***
	  	***
	Business License	  	***	  	 ***
	  	***
	Charitable Contributions	  	***	  	 ***
	  	***
	Other	  	***	  	 ***
	  	***
				
	Board compensation	  	***	  	 ***
	  	***
	Board	  	***	  	 ***
	  	***
				
	Bad Debts	  	***	  	 ***
	  	***
	Bad Debt	  	***	  	 ***
	  	***
	 Subtotal Non-Compensation
	  	***	  	***	  	***
	Total Expense Before Alloc	  	***	  	***	  	***
				
	Overhead Allocation	  	***	  	 ***
	  	***
	Facilities allocations-In	  	***	  	 ***
	  	***
	IT allocations-In	  	***	  	 ***
	  	***
	Allocation	  	***	  	 ***
	  	***
	Total Expense	  	***	  	 ***
	  	***

   

 4 / 4 

  ANNEX N 

ASSIGNMENT 

WHEREAS, NXP B.V., a limited liability company incorporated under the laws of the Netherlands, with corporate seat in Eindhoven, the
Netherlands, and having its address at High Tech Campus 60, 5656 AG Eindhoven, the Netherlands, (hereinafter the “ASSIGNOR”), is the owner of record and assignee of interest of the inventions set forth in each patent and pending patent
application listed on Appendix A hereto (the “PATENTS”); 
 WHEREAS, VL C.V. is a limited partnership formed under the
laws of the Netherlands, having its address at 47100 Bayside Parkway, Fremont, California 94538, USA (the “ASSIGNEE”); 

WHEREAS, ASSIGNOR and ASSIGNEE have entered into that certain Asset Purchase Agreement, dated as of October 9, 2009 (“Asset Purchase
Agreement”) and that certain Intellectual Property Transfer and License Agreement, dated as of November 16, 2009 (“IP Transfer Agreement”), pursuant to which ASSIGNOR agreed to assign the PATENTS to ASSIGNEE; and 

WHEREAS, ASSIGNEE desires to acquire, and ASSIGNOR desires to assign, all of ASSIGNOR’s title, right and interest in, to and under
said inventions and PATENTS: 
 NOW, THEREFORE, be it known to all whom it may concern: 

THAT for good and valuable consideration, the receipt of which is hereby acknowledged, pursuant to the Asset Purchase Agreement and the
IP Transfer Agreement, ASSIGNOR has and does hereby sell, assign, transfer and set over unto ASSIGNEE, who hereby accepts such sale, assignment, transfer and set over, all of ASSIGNOR’s right, title and interest in, to and under said inventions
and PATENTS, including any divisions, renewals, continuations in whole or in part, reissues and extensions thereof, and in and to any and all letters patents that may be granted and issued therefor, and to the extent it concerns applications, any
and all registrations ensuing from such applications, in the applicable jurisdictions, together with the right to prosecute such applications and the right to claim for the same the priority rights derived from said PATENTS under the patent laws of
the United States, the International Convention for the Protection of Industrial Property, or any other international agreement or the domestic laws of the country in which any such application is filed, in each case as may be applicable;

 AND this Assignment is made for purposes of recording the assignment of the PATENTS with the United States Patent and
Trademark Office and foreign equivalents, and ASSIGNOR hereby authorizes and requests that the Commissioner for Patents and any official of any country or countries foreign to the United States, whose duty it is to issue patents or other evidence or
forms of industrial property protection on applications as aforesaid, to issue the same to ASSIGNEE, its successors, legal representatives and assigns, in accordance with the terms of this assignment; 

AND ASSIGNOR hereby further covenants and agrees that it will, at the expense of ASSIGNEE, its successors, legal representatives and
assigns, execute all papers and perform such other acts as may be reasonably necessary to give Assignee, its successors, legal representatives and assigns, the full benefit of this Assignment; 

AND except as set forth in the Asset Purchase Agreement, ASSIGNOR hereby disclaims all representations and warranties concerning the
PATENTS; 
 AND this Assignment shall be governed by and construed in accordance with the laws of the State of New York without
regard to choice of laws provisions thereof; 
 AND this Assignment may be executed in any number of counterparts, each of which
shall be deemed to be an original, and all of which together shall constitute one and the same instrument. 
 [SIGNATURE TRUE
PAGES FOLLOW] 

  This              day of
                    , 2009. 
   
  
			
	ASSIGNOR: NXP B.V.
		
	By:	 	  

	Printed Name:	 	  

	Title:	 	  

	
	ASSIGNEE: VL C.V.
	
	By: Virage Logic International, its general partner
		
	By:	 	  

	Printed Name:	 	  

	Title:	 	  

STATE OF CALIFORNIA
                                ) 

COUNTY OF
                                         
            ) 
 On
                    , 2009 before me,
                                        ,
Notary public, personally appeared
                                        ,
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the
instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 
 I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct. 
 WITNESS my hand and official seal. 

Signature                       
                                 (Seal) 

[Signature Page to Patent Assignment] 

Appendix A 

*** 

  Annex O – IPTLA – Tape Out Report 

***

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