Document:

exv10w26

 

EXHIBIT 10.26

CONFIDENTIAL TREATMENT REQUESTED

LONGRUN2 TECHNOLOGY LICENSE AGREEMENT

     This LongRun2 Technology License Agreement (“Agreement”) is made and entered into as of
February 22, 2006 (“Effective Date”), by and between Transmeta Corporation, a Delaware corporation
having its principal place of business at 3990 Freedom Circle, Santa Clara, CA 95054, U.S.A.
(“Transmeta”), and Toshiba Corporation, a Japanese corporation having its principal place of
business at 1-1, Shibaura 1-Chome, Minato-Ku, Tokyo 105-8001, Japan, including its wholly owned
subsidiaries (“Toshiba”).

RECITALS

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

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

     C. Toshiba desires that Transmeta grant Toshiba a license under Transmeta’s Intellectual
Property Rights (as defined below) in and to the Transmeta Technology, and Transmeta is willing to
grant Toshiba such a license, subject to and in accordance with the terms and conditions of this
Agreement, for Toshiba to use the Transmeta Technology with its 90nm,
[* * *] and 22nm CMOS technology
generations, and any intermediate (i.e., internode) generations thereof.

     D. Transmeta and Toshiba have agreed that the initial license rights that Transmeta grants to
Toshiba will be limited to semiconductor devices with a minimum operating power [* * *], or devices
with a maximum operating power [* * *], one choice of which Toshiba will make by [* * *].
Transmeta has agreed to grant Toshiba an option to extend the scope of such license rights to
semiconductor devices of any operating power by notifying Transmeta and paying Transmeta an
additional fee in accordance with the terms and conditions set forth in this Agreement.

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

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

	1.	 	DEFINITIONS

	1.1	 	“Foundry Service” means the service of manufacturing semiconductor wafers on behalf of third
parties where the manufacturer provides the third parties with process information (such as
design rules) and/or cell libraries, function block or macro (such as,

 

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

			
	 	 	 
	Toshiba / Transmeta LongRun2 Agreement
	 	February 19, 2006

 

 

	 	 	by way of example, but not limitation, a digital or analog block or cell library) to be
incorporated into the wafers.
	 
	1.2	 	“Have Designed or Manufactured” means for Toshiba (or a sublicensed Toshiba Subsidiary (as
defined below)) to contract with a third party or parties to perform designing or
manufacturing functions for and on behalf of Toshiba (or the sublicensed Toshiba Subsidiary).
	 
	1.3	 	“Intellectual Property Rights” means Patents, mask work rights, copyrights, rights in trade
secrets and know-how, and any other intellectual property rights recognized in any country or
jurisdiction in the world, exclusive of rights in and to trademarks, trade names, logos,
service marks, other designations of source and design patents and design patent applications.
	 
	1.4	 	“LongRun2 Products” means 90nm [* *
*] and 22nm (and any intermediate (i.e., internode) generations
thereof) CMOS integrated circuit semiconductor devices that are based on, manufactured
utilizing, embody, implement, incorporate or practice the Transmeta Technology, in whole or in
part.
	 
	1.5	 	“Field of Operating Power” means the fields of operating power of LongRun2 Products: (i) a
minimum operating power of [* * *], or (ii) a maximum operating power of [* * *]. Toshiba
shall notify Transmeta, by no later than [* * *], which of the foregoing fields will be the
initial field of operating power that Toshiba will use.
	 
	1.6	 	“Patent(s)” means any patent(s) or patent application(s), worldwide, owned or controlled by a
party at any time during the term of this Agreement, except for design patents and design
patent applications.
	 
	1.7	 	“Toshiba Improvements” means any improvements, modifications, enhancements, extensions to or
derivative works based upon the Transmeta Specific Technology, developed by or for Toshiba or
a Toshiba Subsidiary by any employee, contractor, consultant or agent of Toshiba or a Toshiba
Subsidiary who has had access to Transmeta Specific Technology pursuant to this Agreement or
the Mutual NDA (dated * * *).
	 
	1.8	 	“Subsidiary” means any entity that a party controls. For purpose of this definition,
“controls” means having: (i) ownership of more than fifty percent (50%) of the equity
securities entitled to vote for the election of directors (or, in the case of an entity that
is not a corporation, for the election of the corresponding managing authority); or (ii) the
right to vote for or appoint a majority of the board of directors or other governing body of
such entity. Any entity will be deemed to be a “Subsidiary” only so long as such control
exists. Subsidiary(ies) of Toshiba will be referred to as “Toshiba Subsidiary(ies)” and those
of Transmeta will be referred to as “Transmeta Subsidiary(ies)”.
	 
	1.9	 	“Transmeta Technology” means Transmeta’s proprietary power management and related
technologies described in Exhibit A attached hereto, and including any improvements,
modifications, enhancements, extensions thereto or derivative works based thereon, in whole or
in part, developed by or for Transmeta or Transmeta Subsidiaries, that Transmeta provides to
Toshiba pursuant to the terms of this Agreement.

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

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	1.10	 	“Transmeta Technology Deliverables” means those items of Transmeta Technology specified in
Exhibit A, attached hereto, that Transmeta will deliver to Toshiba in accordance with
the terms of this Agreement.
	 
	1.11	 	“Transmeta Documents” means the documents included in the Transmeta Technology Deliverables
specified in Exhibit A, attached hereto, that Transmeta will deliver to Toshiba
pursuant to the terms of this Agreement.
	 
	1.12	 	“Transmeta Specific Technology” shall mean the Transmeta Technology that is specified in
Exhibit B and as amended from time to time, by mutual agreement of the parties.
	 
	2.	 	LICENSES, LICENSE ROYALTIES AND NON-ASSERTION RIGHTS
	 
	2.1	 	License Grant. Subject to Toshiba’s compliance with all of the terms and conditions
of this Agreement (including, without limitation, timely payment of all applicable fees,
royalties and any other amounts payable hereunder), Transmeta hereby grants to Toshiba a
worldwide, nonexclusive, nontransferable (except as specified in Section 12.1),
non-sublicensable (except as specified in Section 2.3) and royalty-bearing (as specified in
Section 2.5) license under all of Transmeta’s Intellectual Property Rights in and to Transmeta
Technology to:

	 	(a)	 	use, reproduce, modify, enhance, extend, improve and create
derivative works based upon the Transmeta Technology, for Toshiba and
third-party customers of Toshiba, for the purpose of designing, having designed
and developing LongRun2 Products;
	 
	 	(b)	 	manufacture (and Have Designed or Manufactured), use, offer for
sale, sell, export or import LongRun2 Products; provided, that unless and until
Toshiba exercises the License Extension Option (defined in Section 2.2), the
license rights granted under this Section 2.1(b) will be limited to LongRun2
Products in the initial Field of Operating Power which Toshiba elected to use
and notified Transmeta thereof (as specified in Section 1.5); and
	 
	 	(c)	 	use, reproduce, modify, translate, summarize and distribute the
Transmeta Documents, provided that Toshiba will comply with the confidentiality
obligations hereunder to the extent Transmeta Confidential Information (as
defined below) is included.

	 	 	It is acknowledged and agreed by the parties that the rights and license granted under this
Section expressly include the right and license for Toshiba to utilize any Transmeta
Technology to provide Foundry Services to any third-party customers of Toshiba in order for
such third-party customers to design and develop LongRun2 Products for exclusive manufacture
by Toshiba solely for such third-party customers, and to use, offer for sale, sell, export
or import such LongRun2 Products.

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

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	2.2	 	Option to Extend License Rights. Transmeta hereby grants Toshiba the option (the
“License Extension Option”) to extend the scope of the license rights granted under Section
2.1(b) to the other Field of Operating Power not initially elected by Toshiba. Toshiba may
exercise the License Extension Option only by complying with the notice and payment
requirements set forth in Section 3.6. If Toshiba complies with such requirements, the
license rights granted under Section 2.1(b) will extend to LongRun2 Products of any operating
power.
	 
	2.3	 	Toshiba Subsidiaries. Toshiba has the right to sublicense any (or all) of the
license rights granted in Section 2.1 to any Toshiba Subsidiary. Toshiba, however, hereby
guarantees the compliance by each and every such Toshiba Subsidiary with the terms and
conditions of this Agreement, and Toshiba and such Toshiba Subsidiaries shall be jointly and
severally liable for any breach thereof by any such Toshiba Subsidiary.
	 
	2.4	 	License Restrictions.

	 	(a)	 	Restrictions on Have Designed or Manufactured Rights.
Toshiba acknowledges that any exercise of its “Have Designed or Manufactured”
rights under Section 2.1 is expressly contingent upon Toshiba entering into a
written agreement with its contract designer(s) or manufacturer(s) for the
design or manufacture of LongRun2 Products (a “Contract Manufacturing
Agreement”). Each Contract Manufacturing Agreement that Toshiba enters into
shall contain provisions that protect Transmeta’s Intellectual Property Rights
in and to the Transmeta Technology, Transmeta Technology Deliverables and
Transmeta Confidential Information to at least the same extent as the terms and
conditions of this Agreement. Toshiba will use its commercially reasonable
efforts to enforce each such Contract Manufacturing Agreement with at least the
same degree of diligence used by Toshiba to enforce similar agreements for its
own products. Toshiba will promptly notify Transmeta in writing of any breach
of any such Contract Manufacturing Agreement by a Toshiba contract designer or
manufacturer relating to the Transmeta Technology, Transmeta Technology
Deliverables or Transmeta Confidential Information of which Toshiba becomes
aware. Subject to Section 11, Toshiba will be liable for any and all losses or
damages of any kind suffered or incurred by Transmeta arising out of or
relating to any such breach.
	 
	 	(b)	 	Specific Restrictions. Without limiting any
restrictions or other limitations specified in Section 2.4(a) above, Toshiba
further acknowledges that, in no event shall Toshiba or a sublicensed Toshiba
Subsidiary authorize or permit a Toshiba contract designer or manufacturer to
design, manufacture, use, offer to sale, sell, or import a LongRun2 Product for
or on behalf of any party other than Toshiba or a sublicensed Toshiba
Subsidiary, as applicable.

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

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	 	(c)	 	Limited Rights. Toshiba’s rights in the Transmeta
Technology, Transmeta Technology Deliverables and Transmeta Confidential
Information will be limited to those expressly granted in this Agreement.
Transmeta reserves all rights in and to the Transmeta Technology, Transmeta
Technology Deliverables and Transmeta Confidential Information not expressly
granted to Toshiba hereunder. For the avoidance of doubt, Toshiba acknowledges
and agrees that it may not use, reproduce Transmeta Technology Deliverables or
Transmeta Confidential Information, or manufacture (or Have Designed or
Manufactured), offer for sale, sell, export or import any LongRun2 Products,
except as expressly authorized in this Agreement.
	 
	 	(d)	 	Use of Toshiba Improvements. For the avoidance of
doubt, Toshiba owns all right, title, and interest in and to the Toshiba
Improvements, and Toshiba may create, use, reproduce, grant, assign or transfer
rights to Toshiba Improvements to any third party, or otherwise dispose of
unless expressly prohibited in this Agreement.

	2.5	 	Royalties. For each LongRun2 Product manufactured by or for Toshiba or sublicensed
Toshiba Subsidiaries that is based on, manufactured utilizing, embodies, implements,
incorporates or practices any Transmeta Specific Technology, Toshiba will pay Transmeta the
non-refundable royalties calculated in accordance with the royalty schedule set forth in
Exhibit E. Royalties shall accrue upon the date of completion of sale of each of such
LongRun2 Product. Within [* * *] after: (i) the end of each calendar quarter during the term
of this Agreement in which the royalty accrues and (ii) the termination of this Agreement,
Toshiba shall submit to Transmeta the payment of royalties due as shown in the Royalty Report
(as defined in Section 5.2 below). Both parties acknowledge that any semiconductor device,
which is not based on, is not manufactured utilizing, does not embody, implement, incorporate
or practice Transmeta Specific Technology, shall not be subject to royalty payment hereunder.
If dispute arises over whether any technologies used by Toshiba include Transmeta Specific
Technology or not, both parties shall discuss and solve the dispute in good faith. For the
avoidance of doubt, no royalty shall be payable with respect to a specific LongRun2 Product if
Toshiba can demonstrate to Transmeta’s reasonable satisfaction that the Transmeta Specific
Technology embodied in such product is not functional and cannot be removed without Toshiba’s
expenditure of undue expense.
	 
	2.6	 	Non-Assertion by Toshiba of Patent Rights in Toshiba Improvements. Subject to
Transmeta’s compliance with all of the terms and conditions of this Agreement and the
condition that Transmeta, Transmeta Subsidiaries and Transmeta’s other licensees shall
covenant not to sue for infringement or otherwise assert rights in any of their Patents in or
to their improvements equivalent to Toshiba Improvements against Toshiba, Toshiba Subsidiary,
its contract designer, manufacturer, distributor and customer, Toshiba, on behalf of itself
and all sublicensed Toshiba Subsidiaries, hereby covenants not to sue for infringement of or
otherwise assert rights in any of its Patents in or to Toshiba Improvements against:

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

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	 	(a)	 	Transmeta and Transmeta Subsidiaries on the grounds that they
are making, using, selling, offering for sale, importing LongRun2 Products, but
only with respect to those features, techniques or functionalities of a
LongRun2 Product that implement, incorporate, embody or are based on a Toshiba
Improvement.
	 
	 	(b)	 	distributors and customers (including but not limited to
end-user customers) of Transmeta and Transmeta Subsidiaries on the grounds that
such parties are making, using, selling, offering for sale, or importing
LongRun2 Products, but only with respect to those features, techniques or
functionalities of a LongRun2 Product that implement, incorporate, embody or
are based on a Toshiba Improvement; and
	 
	 	(c)	 	contract manufacturers of Transmeta and Transmeta Subsidiaries
on the grounds that such manufacturers are manufacturing LongRun2 Products
solely for Transmeta or Transmeta Subsidiaries, but only with respect to those
features, techniques or functionalities of a LongRun2 Product that implement,
incorporate, embody or are based on a Toshiba Improvement.

	2.7	 	Additional Patent Licensing. At Transmeta’s request, at any time during the term of
this Agreement, Toshiba will negotiate with Transmeta in good faith (but not be obligated to
agree to) the granting of a license under any Toshiba Patent related to Transmeta’s LongRun2
Products. The terms of such license, including any applicable royalty, will be on a
reasonable and non-discriminatory basis, and if agreed upon, will be documented in a separate
agreement.
	 
	3.	 	TECHNOLOGY TRANSFER FEES
	 
	3.1	 	Transmeta Obligations: Subject to Toshiba’s payment of the technology transfer fee in
accordance with Section 3.5 below, during the period following the Effective Date through [* *
*] (the “Technology Transfer Services Period”), Transmeta will deliver to Toshiba: (i) the
Transmeta Technology Deliverables as set forth in Exhibit A; and (ii) certain
technology training as set forth in Exhibit D in accordance with the terms specified
in Exhibit D (“Technology Transfer Training”) as soon as can be mutually agreed.
Transmeta will make delivery of the Transmeta Documents identified in Documents 1 through 14
of Exhibit A by [* * *]. Unless otherwise agreed in writing between the parties,
Transmeta will have no obligation to provide additional deliverables or training of any kind
after the expiration of the Technology Transfer Services Period. The parties acknowledge and
agree that any Transmeta Technology, other than the technology described in Exhibit A,
will be delivered solely at Toshiba’s request, and solely to the Toshiba personnel identified
in Exhibit G. Toshiba may update Exhibit G by reasonable prior notice to
Transmeta.
	 
	3.2	 	Maintenance Services. During the Technology Transfer Services Period, Transmeta will
provide or make available to Toshiba the maintenance services, as specified in Exhibit
C (“Maintenance Services”). For the performance of Maintenance Services, Toshiba will pay
Transmeta [* * *], which fee will be payable within [* * *] following the execution

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

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	 	 	of this Agreement. Transmeta will provide Toshiba with monthly report on how much of the
above-mentioned fee will be used for specific Maintenance Service to be provided in the
following month. After that period, at Toshiba’s request, the parties will negotiate in good
faith the terms and conditions (including fees) with respect to Transmeta’s provision of
additional Maintenance Services.
	 
	3.3	 	Provision of Transmeta Technology “AS IS”. The Transmeta Technology, Transmeta
Technology Deliverables, Technology Transfer Training, Technical Support Services and
Maintenance Services are provided “AS IS”.
	 
	3.4	 	Acknowledgement of Confidential Information. Toshiba acknowledges that the Transmeta
Technology, Transmeta Technology Deliverables, Technology Transfer Training, Technical Support
Services and Maintenance Services contain and will disclose to Toshiba certain highly valuable
trade secrets of Transmeta, as provided for in Section 7.
	 
	3.5	 	Technology Transfer Fee. In consideration of Transmeta’s delivery of the Transmeta
Technology Deliverables and Technology Transfer Training pursuant to Section 3.1 during the
Technology Transfer Services Period, Toshiba will pay Transmeta a one-time technology transfer
fee of [* * *], which fee will be payable (i) within [* * *] following the execution of this
Agreement or (ii) by [* * *], whichever is later. The technology transfer fee payable by
Toshiba hereunder is non-refundable, and is not creditable against the royalties which may
become payable by Toshiba under Section 2.5. This payment is in no way dependent upon Toshiba
successfully manufacturing a LongRun2 Product or “bringing up” a LongRun2 Product production
process.
	 
	3.6	 	License Extension Option Fee. In order to exercise the License Extension Option,
Toshiba must notify Transmeta thereof in writing by no later than [* * *] and pay to Transmeta
the applicable License Extension Option Fee of [* * *], which fee will be payable no later
than [* * *]. If Toshiba fails to notify Transmeta of its desire to exercise the License
Extension Option by [* * *], then the License Extension Option will automatically expire.
	 
	3.7	 	Technical Support Services. Transmeta will provide or make available to Toshiba the
technical support services, as specified in Exhibit D (“Technical Support Services”).
In consideration of Transmeta providing Technical Support Services, Toshiba will pay Transmeta
fees in accordance with the terms and conditions (including timing) set forth in Exhibit
D, which terms and conditions may be re-negotiated from time to time by the parties. The
fees for Technical Support Services payable by Toshiba hereunder are non-refundable and
non-recoupable, and are not creditable against the royalties which may become payable by
Toshiba under Section 2.5. If Toshiba cancels Technical Support Services upon at least [* *
*] notice, the fees payable by Toshiba will be pro-rated based on the period for which
Transmeta has performed (and continues to perform) such Technical Support Services until such
scheduled cancellation date.
	 
	3.8	 	For the avoidance of doubt, information regarding the use and exploitation of the Transmeta
Technology, which is disclosed by any other Transmeta Technology licensee

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

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	 	 	to Toshiba in accordance with Section 7.2 (iii), shall not be considered as any technology
transfer pursuant to this Agreement, and Toshiba may fully use such information subject to a
3-party confidentiality agreement between Transmeta, Transmeta licensee and Toshiba.
Notwithstanding the foregoing, to the extent that any information disclosed by a Transmeta
Technology licensee to Toshiba would be considered Transmeta Specific Technology if such
information is included in Exhibit B and Transmeta had provided such information directly to
Toshiba, then such information will be deemed to be Transmeta Specific Technology for all
purposes of this Agreement, and Toshiba’s rights to use such information will be solely as
set forth in this Agreement.
	 
	4.	 	PAYMENT, INTEREST AND TAXES
	 
	4.1	 	Payment Method. All payments by Toshiba shall be made in U.S. dollars by wire
transfer to the bank account to be separately designated in writing by Transmeta.
	 
	4.2	 	Interest and Other Payment Terms. Any payments made after the applicable due date
will incur interest at the rate of [* * *]. All amounts specified in this Agreement will be
paid in U.S. dollars and will not be subject to setoff against any amounts of claims that
Transmeta owes to Toshiba under this Agreement or under any other agreement.
	 
	4.3	 	Taxes. Toshiba will pay any and all national, state, prefecture, city, local and
other excise, sales, use, value-added and other taxes and duties imposed by any and all
applicable laws and regulations in Japan in respect of the payments made under this Agreement
or otherwise arising out of this Agreement, other than taxes based upon Transmeta’s net
income. If it is required under applicable law, Toshiba may pay, on Transmeta’s behalf, any
withholding taxes that are required to be paid under applicable law. In this event, Toshiba
will furnish Transmeta with written documentation of such payments, including but not limited
to receipts, of any and all such taxes paid by Toshiba.
	 
	5.	 	RECORDS AND AUDIT REQUIREMENTS
	 
	5.1	 	Records. For [* * *] after the completion of each calendar quarter, Toshiba will
maintain complete and accurate books, records and accounts as are reasonably necessary to
verify the royalty payments made by Toshiba hereunder.
	 
	5.2	 	Reports. Within [* * *] after (i) the end of each calendar quarter during the term
of this Agreement; and (ii) the termination of this Agreement, Toshiba will furnish to
Transmeta a written report specifying the royalties owed for the relevant period (“Royalty
Report”). If no royalties are due, that fact will be shown on such Royalty Report. The
content, form and format of such Royalty Reports will be as mutually agreed to by the parties,
but will include, at a minimum, the quantity of each royalty-bearing LongRun2 Product.
	 
	5.3	 	Audit. During the term of this Agreement and for a period of [* * *] thereafter,
upon at least [* * *] prior written notice to Toshiba, Transmeta will have the right, at its
own cost and expense, to authorize an internationally recognized certified public accounting
firm as agreed by Toshiba, with Toshiba’s prior consent which will not be unreasonably
withheld or delayed, to audit Toshiba’s books, records, and accounts, and other relevant
information for the purpose of verifying the accuracy of the amount of royalties reported

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

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	 	 	by Toshiba in Royalty Reports pursuant to Section 5.2, provided that such audit shall be
conducted during the normal business hours of Toshiba and no more frequently than once a
year. If the accounting firm concludes that additional amounts were owed during the audited
period, Toshiba will pay such additional amounts plus interest calculated in accordance with
Section 4.2, within [* * *] of the date Transmeta delivers the accounting firm’s written
report to Toshiba. Transmeta will pay the fees and expenses charged by the accounting firm;
provided however, if the audit discloses that the royalties payable by Toshiba for the
audited period are more than [* * *] of the amounts actually paid for such period, then
Toshiba will pay the reasonable fees and expenses charged by the accounting firm. In the
event the audit reveals an overpayment by Toshiba, said amount shall be credited against the
next royalty payment to be made by Toshiba. Transmeta shall provide Toshiba with a copy of
any report prepared by the accounting firm within [* * *] of the receipt of the same.
	 
	6.	 	TERM AND TERMINATION
	 
	6.1	 	Term. This Agreement will begin on the Effective Date and will remain in force
unless and until terminated in accordance with Section 6.2.
	 
	6.2	 	Termination. Either party may terminate this Agreement if the other party breaches
any material term or condition of this Agreement that fails to cure such breach within [* * *]
following receipt of written notice from the non-breaching party.
	 
	6.3	 	Effect of Termination. Upon the termination of this Agreement by either party
pursuant to Section 6.2: (i) except as otherwise expressly provided in this Agreement, all
licenses and rights granted to Toshiba,; (ii) Toshiba shall promptly return to Transmeta or
destroy all Transmeta Confidential Information and all Transmeta Technology Deliverables in
its possession or control and provide Transmeta with an officer’s written certification,
certifying to the return or destruction of all such Transmeta Confidential Information and
Transmeta Technology Deliverables, provided that Toshiba (and sublicensed Toshiba
Subsidiaries) may retain a reasonable number of copies thereof necessary for the provision of
maintenance services to its then existing customers to which Toshiba and/or Toshiba
Subsidiaries had already sold the LongRun2 Products; and (iii) Transmeta shall promptly return
to Toshiba or destroy all of Toshiba Confidential Information that Transmeta may have
obtained through the course of this Agreement, and provide Toshiba with an officer’s written
certification, certifying to the return or destruction of all such Confidential Information.
	 
	6.4	 	Survival. Toshiba’s obligation to pay any accrued unpaid amounts due to Transmeta
will survive termination of this Agreement in case of termination for any reason. The rights
and obligations of the parties under Sections 1, 2.4, 2.6 (except if Toshiba terminates this
Agreement pursuant to Section 6.2), 3.3, 4, 5, 6.3, 6.4, 7, 8, 9, 10, 11 and 12 of this
Agreement also will survive the termination of this Agreement for any reason. The license
rights granted by Transmeta under Sections 2.1 and 2.3 will survive termination of this
Agreement by either party pursuant to Section 6.2 with respect to any and all LongRun2
Products sold and invoiced by Toshiba or a sublicensed Toshiba Subsidiary prior to the
effective date of termination and, subject to Toshiba’s payment of the

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	9	 	 

 

 

	 	 	applicable royalties in accordance with the terms of this Agreement, any LongRun2 Products
manufactured by Toshiba or a sublicensed Toshiba Subsidiary prior to the effective date of
termination.
	 
	7.	 	CONFIDENTIALITY
	 
	7.1	 	Confidential Information. “Confidential Information” means any business or technical
information that a party hereto desires to protect against unauthorized use or disclosure
that: (i) is disclosed in writing and is identified and/or marked by the disclosing party as
Confidential Information at the time of disclosure; or (ii) is disclosed orally or in other
intangible form, is identified as confidential at the time of disclosure and is confirmed by
disclosing party in writing within thirty (30) days of its initial disclosure. Without
limiting the generality of the foregoing, Confidential Information may include, but is not
limited to, any information relating to business processes, operations, product plans,
designs, costs, product prices and names, finances, marketing plans, business opportunities,
personnel, research, development or know-how; and the terms and conditions of this Agreement.
	 
	7.2	 	Use and Disclosure Restrictions. For a period [* * *] from the date of receipt of
each item of Confidential Information, or for a certain period to be agreed by both parties in
the case either party needs longer confidential obligation period for specific information,
neither party will use the other party’s Confidential Information except for the purposes of
exercising its rights and fulfilling its obligations hereunder, and will not disclose such
Confidential Information to any third party except to its employees and consultants as is
reasonably required in connection with the exercise of its rights and the fulfillment of its
obligations under this Agreement (and, in case of any consultants, only subject to binding use
and disclosure restrictions at least as protective as those set forth herein to be executed in
writing by such consultants). In addition, Toshiba may disclose Transmeta Confidential
Information to any (i) Toshiba Subsidiary to which Toshiba grants a sublicense pursuant to
Section 2.3 hereof, (ii) to any third-party designer or manufacturer of Toshiba or such a
sublicensed Toshiba Subsidiary for the purpose of exercising its rights under Section 2.1(b),
(iii) to any other Transmeta licensee of the Transmeta Technology solely for the purpose of
Toshiba and such licensee discussing and sharing information regarding the use and
exploitation of the Transmeta Technology , provided that Toshiba, Transmeta and such licensee
have first entered into a 3-way confidentiality agreement; and (iv) to any third-party
customer of Toshiba or such a sublicensed Toshiba Subsidiary for the purpose of exercising its
rights under Section 2.1; provided, that prior to any such disclosure, each such third party
customer must execute a written non-disclosure agreement with Toshiba that contains use and
disclosure restrictions at least as protective as those set forth herein. For the avoidance
of doubt, in no event will either party have the right to disclose the terms and conditions of
this Agreement, including, without limitation, any exhibits hereto, to any other Transmeta
licensee of the Transmeta Technology. Each party will use all reasonable efforts to protect
and to maintain the confidentiality of all of the other party’s Confidential Information in
its possession or control by using the efforts that such party ordinarily uses with respect to
its own proprietary information of similar nature and importance, but in no event less than
reasonable efforts. The foregoing obligations will not restrict either party from disclosing

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	10	 	 

 

 

	 	 	the terms of this Agreement or other Confidential Information: (i) pursuant to the order or
requirement of a court, administrative agency, or other governmental body, provided that the
party required to make such a disclosure gives reasonable notice to the other party, to the
extent reasonably practicable, so that the other party may contest such an order or
requirement; (ii) on a confidential basis to its legal or professional financial advisors;
(iii) as required under applicable securities regulations, provided that the party required
to make such a disclosure only discloses that Confidential Information or those portions of
this Agreement, as the case may be, that legal counsel to that party advises are legally
required to be disclosed and exercises commercially reasonable efforts to obtain
confidential treatment of such Confidential Information or the other portions of this
Agreement; and (iv) subject to execution of written confidentiality agreements no less
restrictive than those set forth herein, to present or future providers of capital and/or
potential investors in or acquirers of such party or its assets associated with the subject
matter of this Agreement.
	 
	7.3	 	Exclusions. The obligations set forth in Section 7.2 will not apply to any
information that: (i) is or becomes generally known to the public through no fault or breach
of this Agreement by the receiving party; (ii) the receiving party can document was rightfully
known to the receiving party at the time of disclosure without an obligation of
confidentiality; (iii) the receiving party can document was independently developed by the
receiving party without use of the disclosing party’s Confidential Information; or (iv) the
receiving party rightfully obtains from a third party without restriction on use or
disclosure.
	 
	7.4	 	Residuals. Notwithstanding anything else in this Agreement, however, each party’s
employees shall be entitled to use, without restriction (subject to the confidentiality
obligations in Section 7, but not restricted to the above use restriction) or royalty for any
purpose, the other party’s Confidential Information (excluding Transmeta Specific Technology,
but including such Transmeta Specific Technology as has been confirmed by Toshiba to be not
used for practicing any rights and licenses provided for under this Agreement) retained in
such employee’s unaided memory as a result of rightful access to another party’s Confidential
Information pursuant to this Agreement, subject only to the other party’s patents, copyrights,
or mask work rights. An employee’s memory will be considered to be unaided if the employee has
not intentionally memorized the Confidential Information for the purpose of retaining it and
subsequently using or disclosing it. Nothing in this Agreement will restrict any party’s right
to assign or reassign its employees, including without limitation those who have had access to
the other party’s Confidential Information, to any project in its discretion.
	 
	7.5	 	Independent Development. Transmeta acknowledges that Toshiba may currently be
developing technology that is similar to the Transmeta Technology. Accordingly, nothing in
this Agreement will be deemed to limit Toshiba’s right to independently develop technology
that is similar to the Transmeta Technology. For the purposes hereof, technology will be
deemed to be independently developed if and only if it is developed by Toshiba employees or
contractors without use of actual access to any Transmeta Technology or Transmeta Confidential
Information, subject to Section 7.4.

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	11	 	 

 

 

	8.	 	OWNERSHIP
	 
	8.1	 	Transmeta Ownership. Toshiba acknowledges and agrees that, as between Transmeta and
Toshiba, Transmeta owns all right, title, and interest in and to the Transmeta Technology
Deliverables, Transmeta Technology and Transmeta Confidential Information, including all
Intellectual Property Rights therein.
	 
	8.2	 	Toshiba Ownership. Transmeta acknowledges and agrees that, as between Toshiba and
Transmeta, Toshiba owns all right, title, and interest in and to the Toshiba Improvements and
Toshiba Confidential Information, including all Intellectual Property Rights therein.
	 
	8.3	 	Proprietary Notices. Each party will not delete or in any manner alter the patent,
copyright, trademark, and other proprietary rights notices of the other party (and its
suppliers, if any) appearing on the documents (including but not limited to the Transmeta
Technology and/or Transmeta Technology Deliverables, Toshiba Improvements), as provided or
otherwise made available by the other party hereunder. Each party shall reproduce such
notices on all copies it makes of the documents, as permitted hereunder.
	 
	9.	 	REPRESENTATIONS AND WARRANTIES
	 
	9.1	 	Warranty of Authority. Each party represents and warrants to the other party that it
has the necessary corporate power, right and authority to enter into this Agreement, to carry
out its obligations under this Agreement, and to grant the rights herein granted.
	 
	9.2	 	Warranty Disclaimer of Transmeta. EXCEPT AS EXPRESSLY SET FORTH IN SECTION 9.1, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, TRANSMETA SPECIFICALLY AND EXPRESSLY DISCLAIMS
ANY AND ALL WARRANTIES OR CONDITIONS WITH RESPECT TO THE TRANSMETA TECHNOLOGY, TRANSMETA
TECHNOLOGY DELIVERABLES, TECHNOLOGY TRANSFER TRAINING, TECHNICAL SUPPORT SERVICES AND
MAINTENANCE SERVICES, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, INCLUDING ANY IMPLIED
WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUALITY, OR
NON-INFRINGEMENT, EVEN IF TRANSMETA HAS BEEN MADE AWARE OF ANY PARTICUAR TOSHIBA REQUIREMENTS.
	 
	9.3	 	Warranty Disclaimer of Toshiba. EXCEPT AS EXPRESSLY SET FORTH IN SECTION 9.1, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, TOSHIBA SPECIFICALLY AND EXPRESSLY DISCLAIMS ANY
AND ALL WARRANTIES OR CONDITIONS REGARDING TOSHIBA IMPROVEMENTS, EXPRESS OR IMPLIED, STATUTORY
OR OTHERWISE, INCLUDING ANY IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, QUALITY, OR NON-INFRINGEMENT, EVEN IF TOSHIBA HAS BEEN MADE AWARE OF ANY
PARTICUAR TRANSMETA REQUIREMENTS.
	 
	10.	 	INFRINGEMENT INDEMNITY

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	12	 	 

 

 

	10.1	 	Transmeta Obligations. Subject to Sections 10.2, 10.3, and 10.5, Transmeta will, at
its expense: (i) defend any third-party action or proceeding brought against Toshiba (or a
Toshiba Subsidiary) to the extent that it is based upon a claim that the Transmeta Technology
and/or Transmeta Technology Deliverables, as provided by Transmeta to Toshiba under this
Agreement, infringes or misappropriates any Intellectual Property Rights of any third party;
and (ii) settle such claim and pay any costs, damages and reasonable attorneys’ fees
attributable to such claim incurred by Toshiba and/or Toshiba Subsidiaries in relation to this
claim or that are payable in a settlement approved in advance and in writing, by Transmeta,
provided, however, that Transmeta shall not enter into any settlement that would impose any
obligations or liability upon Toshiba, without Toshiba’s prior written consent.
	 
	10.2	 	Toshiba Obligations. Subject to Sections 10.1 and 10.3, Toshiba will, at its
expense: (i) defend any third-party action or proceeding brought against Transmeta to the
extent that it is based on a claim arising out of or resulting from an Indemnity Exclusion (as
defined in Section 10.5) and (ii) settle such claim and pay any costs, damages and reasonable
attorneys’ fees attributable to such claim incurred by Transmeta in relation to this claim or
that are payable in settlement approved in advance and in writing, by Toshiba, provided,
however, that Toshiba shall not enter into any settlement that would impose any obligations or
liability upon Transmeta, without Transmeta’s prior written consent.
	 
	10.3	 	Conditions to Defense Obligations. For the purposes hereof, the “Defending Party”
means the party requested to defend the other party under Section 10.1 or 10.2, as the case
may be, and the “Defended Party” means the party making such a request. The Defending Party
will have no obligations to the Defended Party under this Section 10 unless the Defended
Party: (i) provides the Defending Party with prompt written notice of the claim; (ii) provides
the Defending Party with all reasonable information and assistance, at the Defending Party’s
expense, to defend or settle the claim; and (iii) (subject to the provisos as set forth in
Sections 10.1 (ii) and 10.2 (ii)), grants the Defending Party authority and sole control of
the defense and settlement of the claim. The Defended Party reserves the right to retain
counsel, at the Defended Party’s expense, to participate in the defense and settlement of any
such claim.
	 
	10.4	 	Injunctions. If Toshiba’s use of the Transmeta Technology and/or Transmeta
Technology Deliverables is, or in Transmeta’s opinion is likely to be, enjoined due to a claim
of the type specified in Section 10.1 above, then Transmeta will, at its sole option and
expense: (i) procure for Toshiba the right to continue using the Transmeta Technology and/or
Transmeta Technology Deliverables under the terms of this Agreement; and/or (ii) replace or
modify the Transmeta Technology and/or Transmeta Technology Deliverables to make it
non-infringing but substantially equivalent in function; or (iii) if options (i) and (ii)
above cannot be accomplished despite Transmeta’s best efforts, then Transmeta shall pay to
Toshiba compensatory damages incurred by Toshiba due to such injunctions, subject to the
limitation of Section 11 of this Agreement.
	 
	10.5	 	Exclusions. Notwithstanding the terms of Section 10.1, Transmeta will have no
liability for any infringement or misappropriation claim of any kind to the extent it results
from:

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	13	 	 

 

 

	 	 	(i) modifications to the Transmeta Technology or Transmeta Technology Deliverables not made
by Transmeta or a party authorized in writing by Transmeta, if a claim would not have
occurred but for such modifications; (ii) the combination, operation or use of the Transmeta
Technology or Transmeta Technology Deliverables with any data, software, products or devices
not provided by Transmeta or in connection with processes not provided by Transmeta, if a
claim would not have occurred but for such combination, operation or use; (iii) Toshiba’s
failure to use updated or modified versions of the Transmeta Technology or Transmeta
Technology Deliverables provided by Transmeta to avoid a claim; (iv) use of the Transmeta
Technology or Transmeta Technology Deliverables by or on behalf of Toshiba or any Toshiba
Subsidiary in breach of this Agreement; or (v) use of the Transmeta Technology or Transmeta
Technology Deliverables in any manner that would cause Transmeta to continue to incur
liability to a third party with respect to an infringement or misappropriation claim after
notice from Transmeta to cease use thereof. The foregoing clauses (i) through (v) are
referred to collectively as the “Indemnity Exclusions”).
	 
	10.6	 	Sole Remedy. AS BETWEEN TRANSMETA AND TOSHIBA, THE PROVISIONS OF THIS SECTION 10 SET
FORTH EACH PARTY’S SOLE AND EXCLUSIVE OBLIGATIONS, AND THE OTHER PARTY’S SOLE AND EXCLUSIVE
REMEDIES, WITH RESPECT TO ANY THIRD-PARTY INTELLECTUAL PROPERTY RIGHTS INFRINGEMENT OR
MISAPPROPRIATION CLAIMS OF ANY KIND RELATED TO THE TRANSMETA TECHNOLOGY, TRANSMETA TECHNOLOGY
DELIVERABLES, LONGRUN2 PRODUCTS, TOSHIBA IMPROVEMENTS, AND ANY TECHNOLOGY TRANSFER TRAINING,
TECHNICAL SUPPORT SERVICES AND MAINTENANCE SERVICES PROVIDED BY OR FOR TRANSMETA OR TOSHIBA
UNDER THIS AGREEMENT.
	 
	11.	 	LIMITATION OF LIABILITY
	 
	11.1	 	Exclusion of Damages. NEITHER PARTY WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL,
PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF USE, DATA, BUSINESS, PROFITS,
OR GOODWILL) IN CONNECTION WITH, ARISING OUT OF, OR RELATING TO THIS AGREEMENT OR THE USE OF
THE TRANSMETA TECHNOLOGY, TRANSMETA TECHNOLOGY DELIVERABLES OR FROM TECHNOLOGY TRANSFER
TRAINING, TECHNICAL SUPPORT SERVICES OR MAINTENANCE SERVICES PERFORMED BY TRANSMETA UNDER THIS
AGREEMENT, WHETHER SUCH LIABILITY ARISES FROM ANY CLAIM BASED UPON CONTRACT, WARRANTY, TORT
(INCLUDING NEGLIGENCE) OR OTHERWISE, AND WHETHER OR NOT A PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGE. Except for the exclusions for punitive or exemplary damages,
which will apply in all events, the foregoing exclusions will not apply to or restrict in any
manner: (a) either party’s liability arising from a breach of Section 7; (b) either party’s
liability arising out of any infringement, misappropriation or violation of the other party’s
Intellectual Property Rights; or (c) Toshiba’s liability arising from a breach of Section 2.4.

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	14	 	 

 

 

	11.2	 	Total Liability. IN NO EVENT WILL EITHER PARTY’S TOTAL LIABILITY TO THE OTHER PARTY
IN CONNECTION WITH, ARISING OUT OF, OR RELATING TO THIS AGREEMENT, FROM ALL CAUSES OF ACTION
AND THEORIES OF LIABILITY, EXCEED [* * *]. Except for the exclusions for punitive or
exemplary damages, which will apply in all events, the foregoing limitation will not apply to
or restrict in any manner: (a) Toshiba’s liability arising from any breach of Sections 7; (b)
Toshiba’s liability arising out of any infringement, misappropriation or violation of the
other party’s Intellectual Property Rights under this agreement; or (c) Toshiba’s liability
arising from any breach of Section 2.4., on the condition that IN NO EVENT WILL TOSHIBA’S
TOTAL LIABILITY TO TRANSMETA IN CONNECTION WITH, ARISING OUT OF, OR RELATING TO THE ABOVE
SPECIFIED EVENTS, FROM ALL CAUSES OF ACTION AND THEORIES OF LIABILITY, EXCEED [* * *].
	 
	11.3	 	Acknowledgment. Each party acknowledges that the other party has entered into this
Agreement in reliance on the above limitations of liability, and that the same constitute a
material basis of the bargain between the parties. The parties have agreed that the
limitations specified above will survive any expiration or termination of this Agreement and
will apply even if any limited remedy specified in this Agreement is found to have failed of
its essential purpose.
	 
	12.	 	GENERAL PROVISIONS
	 
	12.1	 	Assignment. Neither party may assign or transfer this Agreement and/or any rights
and/or obligations hereunder, in whole or in part, whether by operation of law or otherwise,
without the other party’s express prior written consent, which consent will not be
unreasonably delayed or withheld; provided that any such assignee or transferee shall agree in
writing to be bound by the terms and conditions of this Agreement. Any attempt to assign or
transfer this Agreement, without such consent, will be null and void and without effect.
Notwithstanding the foregoing, either party may assign or transfer this Agreement, without the
other party’s consent, to a third party that succeeds to all or substantially all of its
assets or related business (whether by sale, merger, operation of law or otherwise), and
Transmeta may so assign this Agreement to an assignee or transferee of, or successor in
interest to, Transmeta’s rights to license the Intellectual Property Rights in and to the
Transmeta Technology; provided that any such assignee, transferee or successor agrees in
writing to be bound by the terms and conditions of this Agreement. For the avoidance of
doubt, any rights granted to Transmeta in Section 2.6 in this Agreement shall be granted
solely to Transmeta and shall not be assigned or transferred to any party without Toshiba’s
prior written consent. Subject to the foregoing, the rights and obligations of the parties
will be binding upon and inure to the benefit of the parties’ permitted successors and lawful
transferees and assigns.
	 
	12.2	 	Independent Contractors. In performing their respective duties under this Agreement,
each of the parties will be operating as an independent contractor. Nothing contained herein
will in any way constitute any association, partnership, or joint venture between the parties
hereto. Neither party will have the power to bind the other party or incur obligations on the
other party’s behalf without the other party’s prior written consent.

 

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

	 	 	 	 	 
	 
	 	 	 	 
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	12.3	 	Equitable Relief. Each party acknowledges and agrees that any breach of this
Agreement with respect to the other party’s Intellectual Property Rights or Confidential
Information may cause such other party to incur irreparable harm and significant injury that
would be difficult to ascertain and would not be compensable by damages alone. Accordingly,
each party acknowledges and agrees that, in addition to any and all remedies that the
non-breaching party may have at law or otherwise with respect to such a breach, the
non-breaching party will have the right to obtain specific performance, injunction or other
appropriate equitable relief.
	 
	12.4	 	Notice. All notices required or permitted under this Agreement will be in writing
and delivered by confirmed facsimile transmission, by courier or overnight delivery services,
or by certified mail, and in each instance will be deemed given upon receipt. All
communications will be sent to the addresses set forth below or to such other address as may
be specified by either party to the other in accordance with this Section. Either party may
change its address for notices under this Agreement by giving written notice to the other
party by the means specified in this Section.

	 	 	 	 	 
	 

	 	Transmeta:
	 	Toshiba:
	 
	 

	 	David R. Ditzel
	 	[* * *]
	 

	 	[* * *]
	 	[* * *]
	 

	 	 	 	[* * *]
	 

	 	 	 	Semiconductor Company
	 

	 	3990 Freedom Circle,
	 	Toshiba Corporation
	 

	 	Santa Clara, CA 95054,
	 	1-1, Shibaura 1-Chome, Minato-Ku, Tokyo 105-
	 

	 	U.S.A.
	 	8001, Japan
	 
	 	 	 	 
	 

	 	With a copy to:
	 	With a copy to:
	 
	 

	 	John O’Hara Horsley
	 	[* * *]
	 

	 	[* * *]
	 	[* * *]

	12.5	 	Compliance with Law; Export Controls. Each party will comply with all laws and
regulations applicable to such party’s performance of this Agreement. Without limiting the
generality of the foregoing, each party will comply fully with all relevant export laws and
regulations of the United States and Japan and all other countries having competent
jurisdiction (“Export Laws”) to ensure that neither the Transmeta Technology, Transmeta
Technology Deliverables nor any direct product thereof or technical data related thereto is:
(i) exported or re-exported directly or indirectly in violation of Export Laws; or (ii) used
for any purposes prohibited by the Export Laws, including, but not limited to, nuclear,
chemical, or biological weapons proliferation.
	 
	12.6	 	Waiver. No failure by either party to exercise or enforce any of its rights under
this Agreement will act as a waiver of such rights, and no waiver of a breach in a particular
situation will be held to be a waiver of any other or subsequent breach.
	 
	12.7	 	Severability. If any provision of this Agreement is found invalid or unenforceable,
that provision will be enforced to the maximum extent possible, and the other provisions of
this Agreement will remain in force.

 

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

	 	 	 	 	 
	 
	 	 	 	 
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	12.8	 	Non-Exclusive Remedy. Except as otherwise set forth in this Agreement, the exercise
by either party of any of its remedies under this Agreement will be without prejudice to its
other remedies under this Agreement or otherwise.
	 
	12.9	 	Force Majeure. Neither party will be liable to the other party for any delay or
failure in its performance of this Agreement to the extent that such delay or failure is due
to causes beyond it’s reasonable control, including, but not limited to, acts of God, fires,
earthquake, explosions, labor disputes, war, terrorism, riots, inability to obtain energy or
supplies, provided, that the non-performing party promptly furnishes notice to the other
party, uses its reasonably efforts to correct such failure or delay in its performance, and
resumes performance as soon as practicable.
	 
	12.10	 	Governing Law. This Agreement will be governed by and construed in accordance with
the laws of the State of California. The parties expressly disclaim the application of the
U.N. Convention on Contracts for the International Sale of Goods.
	 
	12.11	 	Entire Agreement. This Agreement, including its exhibits, constitutes the complete
and exclusive understanding and agreement between the parties relating to the subject matter
hereof and supersedes all contemporaneous and prior understandings, agreements and
communications (both written and oral) relating to its subject matter. No modifications,
alterations or amendments will be effective unless in writing signed by duly authorized
representatives of both parties.
	 
	12.12	 	Publicity. Except as required by applicable law, neither party will individually
make or issue any press release or public statement related to this Agreement or any of the
rights or obligations undertaken by either party hereunder unless agreed otherwise in writing
by both parties prior to the issuance of any such press release or public statement, provided
that if a party is required by applicable law to make or issue any press release or statement,
such party shall immediately notify the other party and both parties shall discuss in good
faith the contents and timing thereof.
	 
	12.13	 	Counterparts. This Agreement may be executed in multiple counterparts, each of
which will be deemed an original, but all of which together will constitute one and the same
instrument.
	 
	12.14	 	Negotiations. The parties will attempt to resolve all disputes, claims, or
controversies arising under or related to this Agreement or its subject matter or any right or
obligation created by this Agreement (“Dispute”) through good faith negotiations conducted by
the representatives of the parties. The party asserting the Dispute will give prompt notice
to the other party describing the Dispute in reasonable detail (“Dispute Notice”).
	 
	12.15	 	Arbitration. If the parties are unable to resolve a Dispute through good faith
negotiations conducted in accordance with the provisions of Section 12.14 above, then, the
Dispute will be resolved by binding arbitration conducted (i) in Santa Clara County,
California by the American Arbitration Association (“AAA”) in accordance with its Commercial
Arbitration Rules then in effect if Transmeta is the defendant, and (ii) in Tokyo, Japan by
the Japan Commercial Arbitration Association in accordance with its Commercial

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	17	 	 

 

 

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

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	TRANSMETA CORPORATION:	 	 	 	TOSHIBA CORPORATION:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Arthur L. Swift
	 	 	 	By:
	 	/s/ Masashi Muromachi	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Name: Arthur Swift	 	 	 	Name: Masashi Muromachi	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title: President and CEO	 	 	 	Title: President and CEO, Semiconductor Company	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Date: February 22, 2006	 	 	 	Date: February 22, 2006	 	 

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	18	 	 

 

 

EXHIBIT A

Transmeta Technology and Transmeta Technology Deliverables

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

Document 1: Transmeta LongRun Power Management Overview

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	19	 	 

 

 

Document 2: Transmeta LongRun2 Product Engineering

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	20	 	 

 

 

Document 3: Transmeta LongRun Circuit Design Guide

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	21	 	 

 

 

Document 4: Transmeta LongRun2 Power Management Technology Overview

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	22	 	 

 

 

Document 5: Transmeta LongRun2 [* * *] Design Guide

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	23	 	 

 

 

Document 6: Transmeta LongRun2 Circuit Design Guide

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	24	 	 

 

 

Document 7: Transmeta [* * *] Methodology

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	25	 	 

 

 

Document 8: Transmeta LongRun2 Transistor Optimization Recommendations

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	26	 	 

 

 

Document 9: Transmeta Device [* * *] Design Guide

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	27	 	 

 

 

Document 10: Transmeta LongRun2 Technology Evaluation Test Structures

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	28	 	 

 

 

Document 11: Transmeta LongRun2 Advanced [* * *]

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	29	 	 

 

 

Document 12: Transmeta [* * *] 

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	30	 	 

 

 

Document 13: Transmeta LongRun2 [* * *]

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	31	 	 

 

 

Document 14: Layout Considerations for [* * *] From LongRun2

[* * *]

15. Transmeta’s Presentation Materials

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

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	32	 	 

 

 

EXHIBIT B

Transmeta Specific Technology

Document 1: Transmeta LongRun Power Management Overview

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	33	 	 

 

 

 Document 2: Transmeta LongRun2 Product Engineering

Document 3: Transmeta LongRun Circuit Design Guide

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	34	 	 

 

 

Document 4: Transmeta LongRun2 Power Management Technology Overview

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	35	 	 

 

 

Document 5: Transmeta LongRun2 [* * *] Design Guide

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	36	 	 

 

 

Document 6: Transmeta LongRun2 Circuit Design Guide

     [* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	37	 	 

 

 

Document 7: Transmeta LongRun2 [* * *] Methodology

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	38	 	 

 

 

 Document 8: Transmeta LongRun2 Transistor Optimization Recommendations 

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	39	 	 

 

 

Document 9: Transmeta Device [* * *] Design Guide

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	40	 	 

 

 

Document 10: Transmeta LongRun2 Technology Evaluation Test Structures

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	41	 	 

 

 

Document 11: Transmeta LongRun2 Advanced [* * *]

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	42	 	 

 

 

Document 12: Transmeta [* * *] 

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	43	 	 

 

 

Document 13: Transmeta LongRun2 [* * *]

[* * *]

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	44	 	 

 

 

Document 14: Layout Considerations for [* * *] From LongRun2

15. Transmeta’s Presentation Materials

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

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	45	 	 

 

 

EXHIBIT C

Maintenance Services and Fees

This exhibit describes the Maintenance Services that Transmeta will provide to Toshiba pursuant to
Section 3.2.

Maintenance Services. Maintenance services to:

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

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

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	46	 	 

 

 

EXHIBIT D

Technical Support Services and Fees

This exhibit describes the Technical Support Services that Transmeta will provide to Toshiba
pursuant to Section 3.1 and 3.7, starting with the Effective Date of this Agreement.

1.
Transmeta Technology Transfer Training

Transmeta will hold training classes for Toshiba no later than [* * *] in accordance with the
schedule to be mutually agreed between the parties. Toshiba shall decide the topic area of the
Training classes among the items listed in Exhibit A. Training classes will take no more than [* *
*]. Upon the completion of the training classes, and Toshiba’s receipt of all of the Transmeta
Technology Deliverables specified in Exhibit A, the parties will execute Exhibit F (Memorandum of
Acceptance) and exchange copies of this document.

2.
Technical Support Services.

Transmeta will provide a team of approximately [* * *] “full time equivalent” (FTE) engineers
experienced with LongRun2 to assist Toshiba with developing the semiconductor process, test chips,
and implementation of LongRun2 in specific chip designs. The engineering personnel requirements
indicated under “Project Description”, the [* * *] indicated under “Estimated [* * *]” for each
such project, and the [* * *] fee indicated under “Fee [* * *]” are provided for estimating
purposes only and are not binding on Transmeta or Toshiba and do not affect the quarterly Technical
Support Service fee payable by Toshiba, as specified below. Billing is on a time and materials
basis, and not subject to specific deliverables.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Project	 	 	 	 	 	Estimated	 	Fee	 	 	 	 
	Description	 	FTE	 	[* * *]	 	[* * *]	Total
	 
	1. Consulting on [* * *]
	 	 	[* * *]	 	 	 	[* * *]	 	 	 	[* * *]	 	 	 	[* * *]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2. Circuit development for [* * *]
	 	 	[* * *]	 	 	 	[* * *]	 	 	 	[* * *]	 	 	 	[* * *]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3. [* * *] design and implementation
	 	 	[* * *]	 	 	 	[* * *]	 	 	 	[* * *]	 	 	 	[* * *]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4. Consulting on [* * *]
	 	 	[* * *]	 	 	 	[* * *]	 	 	 	[* * *]	 	 	 	[* * *]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	[* * *]	 	 	 	[* * *]	 	 	 	[* * *]	 	 	 	[* * *]	 

3. Technical Support Services Fee. The fee for Technical Support Services shall be [* * *]
per calendar quarter, not to exceed [* * *] per calendar quarter. Such fee will be due and payable
[* * *]. The first quarterly fee will prorated from the execution date of the Agreement.
Reasonable expenses incurred in the performance of these services will also be added to these fees.
Any capital expenses (e.g., CAD tools) must be approved in advance by Toshiba. Toshiba intends to

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	47	 	 

 

 

sustain this level of support for a minimum of [* * *] from the Effective Date, and to give
Transmeta at least [* * *] notice before any reduction in the level of support that Toshiba will
require from Transmeta.

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	48	 	 

 

 

EXHIBIT E

Royalties

     For any LongRun2 Product manufactured by or for Toshiba, Toshiba will pay Transmeta royalties
calculated in accordance with the royalty schedule set forth below.

	 	 	 	 	 	 	 	 	 
	Cumulative wafers	 	Royalty for 8” wafers	 	Royalty
for 12” or other size wafers
	[* * *]
	 	 	[* * *]	 	 	 	[* * *]	 
	[* * *]
	 	 	[* * *]	 	 	 	[* * *]	 
	[* * *]
	 	 	[* * *]	 	 	 	[* * *]	 
	[* * *]
	 	 	[* * *]	 	 	 	[* * *]	 
	[* * *]
	 	 	[* * *]	 	 	 	[* * *]	 
	[* * *]
	 	 	[* * *]	 	 	 	[* * *]	 

Note to Royalty Schedule

1. The royalty will be calculated [* * *].

 

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

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	49	 	 

 

 

EXHIBIT F

MEMORANDUM OF ACCEPTANCE

For the sole purpose of confirming their respective achievements to date pursuant to their LongRun2
Technology License Agreement dated                     , 2006 (the “Agreement”), Transmeta Corporation
(“Transmeta”) and Toshiba Corporation (“Toshiba”) hereby confirm the following matters, as of
(date)                                         (the “Acceptance Date”):

     1. Transmeta acknowledges that, as of the Acceptance Date, Toshiba has timely paid and
Transmeta has received a payment of                                         , as the first installment of Technology
Transfer Services Fees described in Exhibit D of this Agreement.

     2. Toshiba acknowledges that, as of the Acceptance Date, Toshiba has received and accepted and
Transmeta has delivered and discharged all duties regarding the delivery of the Transmeta
Technology Deliverables in accordance with Section 3.1 of the Agreement.

     3. Transmeta and Toshiba both hereby reaffirm the Agreement and stipulate that none of the
recitals in this memorandum is intended to modify, add to, or eliminate any provision of the
Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	TRANSMETA CORPORATION:	 	 	 	TOSHIBA CORPORATION:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	50	 	 

 

 

EXHIBIT G

Identified Personnel for Receipt of Transmeta Technology

	 	 	 	 	 
	 
	 	 	 	 
	Toshiba / Transmeta LongRun2 Agreement

	 	51exv10w2xey

 

Exhibit 10.2(e)

COMMERCIAL LEASE

     THIS LEASE AGREEMENT made this 19th day of April, 2006, by and between John
Sanders, hereinafter called “Landlord” and Spectranetics Corporation, hereinafter called “Tenant”.

     1. LEASED PREMISES: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord,
the premises known as 144, 146, 148, 150 Talamine Court containing approximately 14255 square feet.

     2. TERM: To have and to hold the leased premises unto Tenant for a term of 3 years (36
months) commencing on the 1st day of April, 2006, and ending on the 31st day
of March, 2009 whereupon the Lease shall automatically renew for an additional period of 12 months
commencing April 1, 2009 and ending March 31st, 2010 unless Tenant exercises his one
time right to terminate the lease at the 31st day of March, 2009 with a written notice
to the Landlord thirty day prior to that date

     LANDLORD shall not have any liability for loss or damage to Tenant’s work or to fixtures,
equipment or other property of Tenant installed or placed by the Tenant in the leased premises.
Any occupancy by Tenant prior to beginning of the term, even though rent free, shall in all other
respects be the same as that of a Tenant under this lease and by such occupancy, Tenant shall be
bound by all terms of this lease. By occupying the leased premises, as a Tenant, or to complete
Tenant’s work, install fixtures, facilities or equipment, or to perform finishing work, Tenant
shall be deemed to have accepted the same an acknowledged that the leased premises are in the
condition required by the Landlord’s covenants. Occupancy by the Tenant, before the Term, will be
prorated to the number of days of occupancy, unless rent free

     3. RENT: Tenant agrees to pay a monthly rental amount shown below and is responsible to pay
for entire total amounts of rents for the whole term of the Lease unless terminated as provided for
in the terms of this Lease. This is a MODIFIED GROSS LEASE and the Landlord is responsible for the
exterior of the building, taxes, land maintenance, water, sewer, exterior utilities and fire
insurance on the structure only. All other utilities, additional tenant finish, garbage and other
service are the responsibility of the Tenant. The rent shall be paid in equal monthly
installments, IN ADVANCE, on or before the 1st day of each moth, as follows:

	 	 	 	 	 	 	 	 	 
	FIRST YEAR monthly rental amount:
	 	$	7275	 	 	Annual Amount: $87300
	SECOND YEAR monthly rental amount:
	 	$	7639	 	 	Annual Amount: $91668
	THIRD YEAR monthly rental amount
	 	$	8021	 	 	Annual Amount: $96252
	OPTIONAL YEAR
	 	$	8422	 	 	Annual Amount:$101064

     (NOTE: If rent is received before the 1st of each month, the tenant may take a 2%
reduction in monthly rental amount. If it is received after the 1st day of the month,
rental amount will be as listed above in part #3 of this Lease.)

Mailed to the Landlord at P.O. Box 38162, Colorado Springs, Colorado 80937. On the anniversary
date of this lease agreement and every year thereafter until the end of the agreement, a 5%
increase in rents will be added to the prior years rental amount as shown above. One monthly
installment of the rent shall be due and payable on or before the first day of the execution of
this lease by the Tenant for the first months rent and a like monthly installment shall be due and
payable on or before the first day of each calendar month succeeding the

 

 

“commencement date” during the term.

     A. All expenses incurred by the Tenant, are the responsibility of the Tenant. If, however,
the Tenant creates a situation whereby the Landlord incurs expenses brought on by the Tenants
neglect or the Tenant causes the property to be encumbered in any way, the Landlord shall have the
right to call these expenses as rents in the remedies herein provided for failure to pay rent.

     B. The Tenant is responsible for ALL Tenant finish, and cannot encumber or cause to encumber
the premises or any adjoining premises or any other premises not rented by the Tenant.

     C. There is a Ten (10) day “grace period” after the first of the month to pay rents.

     D. LATE CHARGES: In the event the rent provided for herein is not received by the Landlord
on the first day of each month and extends beyond the “grace period” for each month, a Late charge
equal to one quarter (1/4) percent of the monthly rental amount shall be due and payable to the
Landlord for each day of delinquency up to 25 days and one (1%) per day for delinquent payments
after the 25th day. If rent is mailed, Tenant is responsible for loss of mail or delay.
Nothing contained herein shall obligate the Landlord to accept the rent after the “grace period”,
nor does the Landlord waive any of its legal rights which may be available for default of Tenant by
inclusion of the provision in this Commercial Lease. In the event Tenant pays rent by check and
the check is not honored by the Landlord’s bank, there will be a charge of thirty five ($35)
dollars for each returned check, in addition, Tenant remains responsible for current rents, late
charges and any additional charges incurred by the Landlord for late rents.

     4. USAGE: Tenant warrants and represents to Landlord that the premises shall be used and
occupied only for the purposes of light manufacturing and/or office use. Use of toxic chemicals is
not permitted. Tenant shall not create any nuisance or otherwise interfere with, annoy or disturb
any other Tenant. Tenant shall not commit, or suffer to be committed, any waster on the premises,
nor shall Tenant permit the premises to be used in any unlawful activity of way which would, in the
option of the Landlord, be extra hazardous or unlawful. Tenant accepts the Premises subject to all
matters of record and to all applicable laws.

     Environmental Compliance and indemnity. Tenant covenants and agrees to conduct its business
and operations on and from the Premises in accordance with all federal state and local
environmental laws, regulations, executive orders, ordinances and directives including, but not
limited to, the Clean Air Act, Clean Water Act, Resource Conservation and Recovery Act, Toxic
Substance Control Act, and State law counterpart, and any amendments thereto, including, without
limitation to Colorado Hazardous Waste Management Act, C.R.S. 25-15-101 et seq, and not to cause,
suffer or permit any damage or impairment to the health, safety or comfort of any person or to the
environment at or on the Premises and surrounding property, including, but not limited to, damage
or threatened damage to the soil, surface or ground water resources at the Premises and surrounding
property or any condition constituting a nuisance or causing a violation of or resulting in
liability under any state, federal or local law, regulation or ordinance. The foregoing obligation
of Tenant shall hereinafter collectively be referred to as the “Environmental Obligations”. In the
event of any violation of, or failure, including all required or appropriate clean up, clean up
related activities and all other appropriate remedial action. Tenant covenants and agrees to
protect, indemnify and same Landlord harmless from and against any and all liability, obligations,
claims including without limitation, any liability arising under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, plus reasonable attorney fees
incurred by or asserted against Landlord resulting from any failure to comply with the provision of
this section 4. Landlord shall have the right to

 

 

Defend itself in any action, suit or proceeding commenced against Landlord as a result of Tenant’s
violation of or failure to comply with the provision of the Section 4, with attorneys and, as
necessary, technical consultants chosen by the Landlord, and Tenant agrees to pay to Landlord those
reasonable expenses.

     5. SERVICES: Tenant shall arrange for any pay all charges for Janitorial services performed
in or on the Premises during the Term of this Lease, and at such times as Landlord shall require so
as to maintain the quality and appearance of the building both inside and out.

     A. Tenant shall pay all charges for gas, electricity and other utilities used by Tenant on
the premises during the term of this lease except as otherwise noted in this Lease. If possible,
all such utilities shall be separately metered and billed in Tenant’s name. In the event that a
separate itemization is not available, Tenant shall pay its pro rata portion based on the square
footage or other pro rate method deemed equitable by the Landlord. Tenant shall be responsible for
all telephone and telecommunications charges.

     B. Landlord’s failure to any extent to furnish these defined services, or any cessation
thereof, shall neither render Landlord liable in any respect for damage either to person or
property, be construed as an eviction or partial eviction of Tenant, work as an abatement of rent,
nor relieve Tenant from fulfillment of any covenants in this lease.

     6. REPAIRS AND MAINTENANCE: Unless otherwise expressly provided, Landlord shall maintain on
the roof, foundation, common parking area, common landscaped areas, and soundness of the exterior
walls (excluding all interior and exterior glass and all interior and exterior doors and overhead
doors) of the building in good repair and condition except for reasonable wear and tear. Tenant
shall pay for the repair of any damage to the interior or exterior of the building caused by the
negligence or default of Tenant or Tenants agents, invites and employees. Landlord shall not be
liable to Tenant except as expressly provided in this lease, for any damage or inconvenience, and
Tenant shall not be entitled to any abatement or reduction of rent by reason of any repairs,
alterations or additions made by Landlord under this lease.

     A. Tenant shall forthwith at its expense replace any cracked or broken glass used in the
leased premises.

     B. Tenant, at its own expense, shall maintain and repair all plumbing fixtures, lighting
fixtures, floor coverings, interior painting, doors, trim and decoration in a good, clean, safe,
proper operating and wholesome condition at all times during the term of this lease.

     C. Tenant is to return the premises to Landlord at the termination of this lease in as good
of condition as existed at the “commencement date” of this lease, ordinary wear and tear excepted
as defined by the Landlord. The cost for any repairs or maintenance work to bring the premises to
such condition shall be borne by the Tenant and full or partial remedy may come from the Tenants
deposit. If repairs or maintenance cost exceed the Tenants deposit, the Tenant shall be
responsible for those costs over and above the deposit amount.

     7. COMMON AREAS: The term “common areas” shall mean all that portion of building
improvements, grounds, parking, and landscaping which is constructed for lease to Tenants or
hereafter leased to Tenants. Tenant shall not at any time interfere with the rights of Landlord
and other tenants, and their employees, customers and invites, to use any part of the common areas.
The Landlord has the right to erect “for rent” or “for sale” signs on the common area as well as
add any improvements as required by the Landlord.

     8. ALTERATIONS AND IMPROVEMENTS: Written approval by the Landlord for any and all
alterations and improvements is required. Any alterations and improvements so approved shall
become the property of the Landlord and shall remain on the premises upon termination or

 

 

     Expiration of the lease. Landlord may, at its option, require Tenant, at the expense of the
Tenant, to remove any physical additions and/or repair and alteration in order to restore the
Premises to the condition existing at the time Tenant took possession.

     9. LIENS ON PREMISES: Tenant shall not permit any lien to be placed and remain on the
Premises, building or common areas as a result of its conduct for any reason for a period longer
than thirty (30) days. Tenant shall also post notice pursuant to Colorado Revised Statutes, 1973,
as amended, 38-22-101, et Seq. negating Landlord’s liability for any mechanics liens resulting from
any work, labor or materials performed for or delivered at Tenants request for incorporation into
the premises.

     10. CONDEMNATION: If, during the term of this lease, all or a substantial part of the
premises are taken for any public or quasi-public use under any governmental law, ordinance or
regulation, or by right of eminent domain or by purchase in lieu thereof, and the taking would
prevent or materially interfere with the use of the premise by the Tenant for the purpose for which
they are then being used, this lease shall be terminated and all rents shall be abated during the
unexpired portion of the lease effective on the date physical possession is taken by the condemning
authority. Tenant agrees that it shall have no claim to the condemnation award.

     11. SECURITY DEPOSIT: The Tenants security deposit is waived in lieu of the expected finish
work to be done by the Tenant of notified t Landlord at the signing of this Lease.

     12. INSURANCE: The Landlord shall at all times during the Term of the lease, maintain a
policy or policies of insurance as Landlord deems appropriate. Landlord shall not be obligated in
any way or manner to insure any personal property of the Tenant. Tenant shall, at Tenant’s
expense, maintain such other liability insurance in the minimum amount of $1000000 as Tenant deems
appropriate to protect Tenant AND Landlord from loss and the Landlord shall be named as “additional
insured” on the Tenant’s liability policy. A current copy of the Tenants insurance policy is to be
maintained by the Landlord. Tenant is to instruct insurance carrier to supply a certificate of
Liability Insurance on each renewal anniversary date to the Landlord.

     13. WAIVER OF SUBROGATION: Anything in this lease to the contrary notwithstanding, Landlord
and Tenant hereby waive and release each other of and from any and all right of recovery, claim,
action or cause of action against each other, their agents, officers or owners, employees for any
loss or damage that may occur to the premises, improvements to the common areas or building of
which the premises are a part, or personal property (building contents) within the building, by
reason of fire or the elements regardless of cause or origin, whether such loss or damage is
insured against and subject to an insurance policy in force at the time of such loss or damage.
Because this paragraph will preclude the assignment of any claim mentioned herein by way of
subrogation or otherwise to an insurance company or any other person, each party to this lease
agrees immediately to give to each insurance company which has issued to it policies of insurance
covering all risk of direct physical loss, written notice of the Terms of the mutual waivers
contained in this paragraph, and to have the insurance policies properly endorsed, if necessary, to
prevent the invalidation of the insurance coverages by reason of the mutual waivers contained in
this paragraph.

     14. INDEMNITY: Tenant shall indemnify and hold harmless Landlord from and against any and
all claims arising from Tenants use of the premises, or from the conduct of Tenants business or
from any activity, work or things done elsewhere. In case any action or proceeding be brought
against Landlord by reason of such claim, Tenant shall defend the same at Tenant’s expense by
counsel satisfactory to Landlord. Tenant hereby assumes all risk of damage to property or injury
to persons in, upon or about the premises arising from any cause and Tenant

 

 

hereby waives all claims in respect thereof against Landlord in respect thereof against Landlord.
Tenant hereby agrees that Landlord shall not be liable for injury to Tenants business or any loss
of income there from or damage to the goods, ware, merchandise or other property of Tenant,
Tenant’s employees, agents, owners, contractors or invites whether such damage or injury is caused
by or results from fire, explosion, steam electricity, gas, water, rain, or from the breakage,
leakage, obstruction, or the damage or injury resulting from conditions arising upon the premises
or upon other portions of the building or common area of which the premises are a part, or from
other sources or place, and regardless of whether the cause of such damage or injury or the means
or repairing the same is inaccessible to Tenant.

     15. FIRE OR OTHER CASUALTY: In the case the building shall be partially or totally destroyed
by fire or other casualty insurable under standard fire insurance so as to become partially or
totally untenable, the same shall be repaired a speedily as possible at the expense of Landlord,
unless Landlord shall elect not to rebuild, as hereinafter provide, and an equitable part of the
rent shall be abated until so repaired based upon the time and to the extent the leased premises
are untenable. If the landlord determines not to rebuild or repair premises of the Tenant, the
Landlord will notify the Tenant of those intentions in writing with 60 days of the casualty loss.
In no event in the case of any such destruction shall Landlord be required to repair or replace
Tenants stock in trade, leasehold improvements, fixtures, furniture, equipment, furnishing,
decorating items, trim, floor coverings and other personal property of the Tenant, agents invites,
contractors, and employees. Tenant covenants to make such repairs and replacements and to furnish
Landlord, on demand, evidence of insurance assuring its ability to do so.

     16. LANDLORD’S RIGHT OF ENTRY: Landlord shall during the term hereof, have the right, at all
reasonable hours, to enter and inspect the premises, with or without the Tenants approval.

     17. ASSIGNMENT OR SUBLEASE: Tenant shall not assign or in any manner transfer this lease or
any interest therein, nor sublet said leased premises or any part or parts hereof, nor permit
occupancy by anyone without the prior written consent of the Landlord. Consent shall not be
unreasonably withheld by Landlord. In the event of any subletting, the Tenant shall nevertheless
at all times remain fully responsible and liable for rent payments and for compliance of all its
other obligations under the terms, provision and covenants of this lease. In the event of any
assignment of this lease, the Tenant shall be liable only for the first thirty (30) days of rent of
the pre-approved assignee. Any subtenant shall not be construed to constitute a release of Tenant
from the further performance of its obligations under this lease.

     18. DEFAULTS: REMEDIES: PAYMENTS: Time is of the essence in all matters concerning this
lease. Any delay on the part of Landlord in exercising any right or insisting upon the performance
of any obligation of Tenant, shall not constitute a waiver of Landlord’s right to exercise these
rights or insist upon these performances in the future:

     A. Events of Default: The following events shall be events of default by Tenant under this
lease:

          aa. Tenant fails to comply with any other provision of provisions of this lease.

          ab. Tenant shall have failed to fully pay when due any installment of rent or any other
charge provided herein.

          ac. Tenant voluntarily or involuntarily petitions for relief pursuant to the bankruptcy or
insolvency laws of the United States, or of any state, if filed by the Tenant or guarantor.

          ad. Tenant had the attachment seizure, levy upon or taking possession by any receiver,

 

 

custodian, or assignee for the benefit of creditors or any portion of the property of Tenant or
guarantor.

          ae. Tenant or guarantor makes an assignment for the benefit of creditors.

          af. An action against the Tenant or guarantor which affects its financial condition adversely
or materially.

     B. Notice of Default: In the event of a default pursuant to Section (A) above, Landlord may,
by serving three (3) days written notice upon Tenant, elect either to:

          aa: Cancel and terminate this lease, or

          ab: Terminate Tenant’s right to possession only without termination of this lease.

     C. In the event Landlord delivers to Tenant a notice of Default, which notice does not state
that Landlord has elected to terminate the lease, Landlord, may at its option enter the premises
and take and hold possession thereof, until Tenant has met its obligation as stated by Colorado
Statutes. All rights of the Landlord may be exercised by the Landlord at the discretion of the
Landlord.

     D. Landlord shall have the right to cancel and terminate this lease by a service of a five
(5) day written notice on Tenant of such further election. Landlord shall have the right to pursue
any remedy at law or in equity that may be available to Landlord.

     E. In the event Landlord delivers to Tenant a Notice of Default which state that Landlord has
elected to terminate the lease, Landlord shall be entitled to recover from Tenant liquidated
damages in an amount equal to the amount of rent which would be payable under the terms of the
lease for the remainder of the lease term if the lease had not been terminated.

     F. Tenant’s property. If Tenant shall fail to remove any of Tenant’s personal property
within 10 ten days of receipt of a Notice of Default, or upon the Termination of this Lease for any
cause whatsoever, the Landlord at its option, may remove the same in any manner that it shall
choose, and store the said effects without liability to the Landlord for loss thereof in any public
or private warehouse, and the Tenant agrees to pay Landlord upon demand, all expenses incurred in
such removal, including court costs and attorney fees and storage charges on such personal property
for any length of time the personal property shall be in storage; or the Landlord at its option,
without notice, may sell said personal property, or any of the same, at a private sale and without
legal process, for such prices as the Landlord may obtain, and apply the proceeds of such sale upon
any amounts due under this lease from the Tenant to the Landlord and upon the expenses incidental
to the removal, storage, and sale of the personal property, rendering the surplus, if any, to the
Tenant.

     G. Lien. Landlord is hereby give a lien that is subordinate to existing lien positions at
the “commencement date”. Further, the Tenant agrees to secure this lease with equipment, fixtures
and furniture of Spectranetics Corporation.

     H. Landlords Default. Should Landlord be in default under the terms of this lease, Landlord
shall have fifteen (15) days in which to cure the same after written notice to the Landlord by the
Tenant is received.

     I. Right of Entry. In the event of Tenants default hereunder, Landlord may, in addition to
all other rights and remedies, re-enter the premises, change any and all locks on doors and other
barriers, and distrain, seize, remove or store all property upon the premises. Tenant hereby
agrees that such acts by Landlord shall not constitute an eviction, constructive or otherwise,
shall not terminate this lease, and shall not render the Landlord liable for trespass, forcible
entry and detainer, conversion.

     19. ACTS OF GOD. Landlord shall not be required to perform any covenant or obligation

 

 

in this lease, or be liable in damages to Tenant, so long as the performance of non-performance of
the covenant or obligation is delayed, caused by or prevented by an act of God or force majeure,
sit-downs, material or labor restriction, delays by any unusual transportation delays, material or
supply shortages or back order, riots, floods, freezing, wash-outs, explosions, earthquakes,
firestorms, act of the public enemy, acts of vandals, wars, insurrections, delays by utility
suppliers, and any other cause not reasonably within the control of the Landlord and which by the
exercise of due diligence Landlord is unable, wholly or in part, to prevent or overcome.

     20. ATTORNEY FEES. In the event Tenant defaults in the performance of any of the terms,
covenants, agreements or conditions in this lease, and Landlord places in the hands of an attorney
the enforcement of all or any part due or the recovery of the possession of the premises, Tenant
agrees to pay Landlord’s attorney fees. In the event suit is brought against the Landlord and
Landlord is found to be at fault, Landlord shall pay for Tenant’s attorney’s fees.

     21. HOLDING OVER. In the event of holding over by the Tenant after the expiration or
termination of this lease, the holdover shall be as a Tenant at will and all of the terms and
provisions of the lease shall continue in force except the rents will be an amount equal to 1 1/2
times the rent which would have been payable by Tenant had the holdover period been part of the
original term of this lease.

     22. RIGHTS OF FIRST MORTGAGEE OR SUBSEQUENT TRANSFEREES. Tenant accepts this lease subject
and subordinate to any recorded deed conveying title, first or other mortgage deed of trust lien
presently existing or hereafter created upon the premises, building and/or common areas. Tenant
agrees upon demand and in a reasonable time period to execute additional instruments subordinating
this lease as Landlord may require.

     23. ESTOPPEL CERTIFICATES AND ATTORNMENT: Tenant agrees to furnish promptly, from time to
time, upon request of the Landlord or Landlord’s mortgagee a statement certifying that the Tenant
is in possession of the premises; the premises are acceptable; the lease is in full force and
effect; the lease in unmodified; Tenant claims no present charge, lien or claim of offset against
rent; the rent is paid for the current month, but is not prepaid for more than one month and will
not be prepaid for more than one month in advance; there is not existing default by reason of some
act or omission by Landlord; and such other matters as may be reasonably required for foreclosure,
or in the event of exercise of the power of sale under and mortgage or deed of trust made by the
Landlord under this lease. No mortgagee shall be liable for any act or omission of Landlord, be
bound by any payment of rent, additional rent or any other charge made more than thirty (30) days
in advance of the due date thereof, or be bound by any assignment, surrender, termination,
cancellation, amendment or modification of the lease without the express written consent of the
mortgagee

     24. GOVERNING LAW. This lease is made and delivered in the State of Colorado and shall be
interpreted, construed, and enforced in accordance with the laws thereof.

     25. SUCCESSORS. This lease shall be binding upon and inured to the benefit of Landlord and
Tenant and their respective heirs, successors and assigns.

     26. TIME OF ESSENCE. Time is of the essence in this lease.

     27. MISCELLANEOUS. The captions appearing in this lease are inserted only as a matter of
convenience and in no way define, limit, construe or describe the scope or intent of such
paragraph. If any provision of this lease shall ever be held to be invalid or unenforceable, such
invalidity or unenforceability shall not affect any other provision of this lease, and all other
provisions shall continue in full force and effect.

     28. NON WAIVER. The receipt by Landlord or rent with knowledge of the breach of any

 

 

Covenant of this lease shall not be deemed a waiver of such breach and no provision of this lease
shall be deemed to have been waived by Landlord unless such waiver be in writing signed by the
Landlord.

     29. NOTICE. All rent and other payments required to be made by Tenant shall be payable to
Landlord at the address set forth below, or at such other address as Landlord may specify from time
to time by written notice.

	 	 	 	 	 
	 

	 	Landlord:
	 	John Sanders
	 

	 	 	 	P.O. Box 38162
	 

	 	 	 	Colorado Springs, Colorado 80937

     Any notices will be mailed to the address set forth below or at such other address as Tenant
may specify from time to time by written notice.

	 	 	 	 	 
	 

	 	Tenant:
	 	Spectranetics Corporation
	 

	 	 	 	96 Talamine Court
	 

	 	 	 	Colorado Springs, Colorado 80906

     30. LEASE EXTENSION. Tenants Lease, upon written request to the Landlord, thirty (30) days
prior to the termination date of this lease will be extended another 12 months beyond the stated
period of this lease agreement with a five (5%) percent increase in rents for that extended period.

     31. ENTIRE AGREEMENT AND LIMITATION OF WARRANTIES. It is expressly agreed by Tenant, as a
material consideration for the execution of this lease: that this lease, with the specific
references to written extrinsic documents, is the entire agreement of the parties; that there are,
and were, no verbal representations, warranties, understandings, stipulations, agreements or
promises pertaining to this lease or the expressly mentioned written extrinsic documents not
incorporated in writing in this lease. Landlord and Tenant expressly agree that there are and
shall be no implied warranties which extend beyond those expressly set forth in this lease. It is
likewise agreed that this lease may not be altered, waive, amended or extended except by an
instrument in writing signed by both Landlord and Tenant. There are a total of eight (8) pages in
this lease.

Signed in County of El Paso, City of Colorado Springs, State of Colorado on the 19th day
of April, 2006.

	 	 	 	 	 	 	 	 	 	 	 
	Landlord:	 	 	 	Tenant:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ John Sanders
 

	 	 	 	By
	 	/s/ Larry Martel
 

	 	 
	John Sanders	 	 	 	Printed Name: Larry Martel	 	 
	 	 	 	 	 	 	Title: V.P. Operations

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