{"id":42540,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/master-development-and-license-agreement-neomagic-corp-and.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"master-development-and-license-agreement-neomagic-corp-and","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/operations\/master-development-and-license-agreement-neomagic-corp-and.html","title":{"rendered":"Master Development and License Agreement &#8211; NeoMagic Corp. and Synapse Design Automation, Inc."},"content":{"rendered":"<p align=\"center\"><strong>MASTER DEVELOPMENT AND LICENSE AGREEMENT<\/strong><\/p>\n<p align=\"center\">\n<\/p>\n<p>THIS MASTER DEVELOPMENT AND LICENSE AGREEMENT (this<br \/>\n&#8220;<strong>Agreement<\/strong>&#8220;) is entered into and effective as of May 5, 2010<br \/>\n(the &#8220;<strong>Effective Date<\/strong>&#8220;), by and between <strong>NeoMagic<br \/>\nCorporation<\/strong>, a Delaware corporation, (&#8220;<strong>NeoMagic<\/strong>&#8220;) and<br \/>\n<strong>Synapse Design Automation, Inc.<\/strong>, a Delaware corporation<br \/>\n(&#8220;<strong>Synapse<\/strong>&#8220;).<\/p>\n<\/p>\n<\/p>\n<p align=\"center\"><strong>BACKGROUND<\/strong><\/p>\n<p align=\"center\">\n<\/p>\n<p>A. Synapse is in the business of developing semiconductor products and<br \/>\nproviding related services.<\/p>\n<\/p>\n<\/p>\n<p>B. NeoMagic wishes to engage Synapse to develop a USB 3.0 transceiver which<br \/>\nwill be jointly owned by the Parties under the terms and conditions of this<br \/>\nAgreement.<\/p>\n<\/p>\n<\/p>\n<p align=\"center\"><strong>AGREEMENT<\/strong><\/p>\n<p align=\"center\">\n<\/p>\n<p>The Parties agree as follows:<\/p>\n<\/p>\n<\/p>\n<p><strong>1. DEFINITIONS<\/strong><\/p>\n<\/p>\n<p>1.1 &#8220;<strong>Acceptance<\/strong>&#8221; means, with respect to a Deliverable and<br \/>\nthe Test Chip, acceptance or deemed acceptance of such item in accordance with<br \/>\n<strong>Section 2.5<\/strong>.<\/p>\n<\/p>\n<p>1.2 &#8220;<strong>Acceptance Criteria<\/strong>&#8221; means, for each Deliverable or the<br \/>\nTest Chip, the applicable acceptance criteria as set forth in the related<br \/>\nStatement of Work. If a Statement of Work contains no additional acceptance<br \/>\ncriteria, the Acceptance Criteria will be that the Deliverable or the Test Chip,<br \/>\nas applicable, conforms to the applicable Specifications.<\/p>\n<\/p>\n<p>1.3 &#8220;<strong>Acceptance Period<\/strong>&#8221; means the period of time agreed by<br \/>\nthe Parties in connection with developing the related Acceptance Criteria.<\/p>\n<\/p>\n<p>1.4 &#8220;<strong>Confidential Information<\/strong>&#8221; means, for a particular<br \/>\nParty, its confidential business or other information which, from the<br \/>\ncircumstances surrounding disclosure, should be understood to be confidential or<br \/>\nproprietary information of such Party. Confidential Information will not include<br \/>\ninformation that (a) is or becomes public knowledge without the fault or action<br \/>\nof the recipient, (b) is received by the recipient from a source other than the<br \/>\ndisclosing Party, which source received the information without violation of any<br \/>\nconfidentiality restriction and is not under an obligation of non-disclosure<br \/>\nwith respect to such information, or (c) is independently developed by the<br \/>\nrecipient without violation of any confidentiality or use restriction as<br \/>\nevidenced by written records. For clarity, the USB 3.0 Transceiver IP is not<br \/>\nConfidential Information of either Party, however, disclosure of such technology<br \/>\nis subject to the limits in <strong>Section 7.3<\/strong>.<\/p>\n<\/p>\n<p>1.5 &#8220;<strong>Customer Transaction<\/strong>&#8221; means a license agreement (which<br \/>\nmay also include additional development) pursuant to which Synapse licenses a<br \/>\nversion of the USB 3.0 Transceiver IP to a third party.<\/p>\n<\/p>\n<p>1.6 &#8220;<strong>Data Sheet<\/strong>&#8221; means, for a particular version of the USB<br \/>\n3.0 Transceiver IP, the document which includes the related Specifications.<\/p>\n<\/p>\n<p>1.7 &#8220;<strong>Deliverables<\/strong>&#8221; means, for a particular Statement of<br \/>\nWork, the deliverables set forth therein.<\/p>\n<\/p>\n<p>1.8 &#8220;<strong>Derivative<\/strong>&#8221; means a work, know-how, technique, process,<br \/>\ninformation, invention and the like which is based upon one or more preexisting<br \/>\nworks, such as a revision, improvement, alteration, enhancement, new version,<br \/>\nmodification, translation, abridgement, correction, condensation, expansion or<br \/>\nany other form of modification or other form.<\/p>\n<\/p>\n<p align=\"center\">1<\/p>\n<p align=\"center\">\n<hr>\n<p>1.9 &#8220;<strong>Documentation<\/strong>&#8221; means the materials for use with the USB<br \/>\n3.0 Transceiver IP, which may include a user manual, reference manuals, release<br \/>\nnotes, application and methodology notes, and Data Sheets.<\/p>\n<\/p>\n<p>1.10 &#8220;<strong>Fees<\/strong>&#8221; means, for a particular Statement of Work, those<br \/>\nfees to be paid by NeoMagic to Synapse for the Services and Deliverables<br \/>\nspecified therein to be provided by Synapse.<\/p>\n<\/p>\n<p>1.11 &#8220;<strong>Fiscal Quarter<\/strong>&#8221; means a fiscal quarter of NeoMagic.\n<\/p>\n<\/p>\n<p>1.12 &#8220;<strong>Initial Statement of Work<\/strong>&#8221; is defined in<br \/>\n<strong>Section 2.1<\/strong>.<\/p>\n<\/p>\n<p>1.13 &#8220;<strong>Intellectual Property Rights<\/strong>&#8221; means, with respect to<br \/>\nany technology, all related intellectual property rights, including patents,<br \/>\ncopyrights, trademarks, trade-names, know-how, trade secrets and all other forms<br \/>\nof intellectual property, irrespective of whether the rights protecting such<br \/>\nproperty arise under U.S. or international intellectual property laws or unfair<br \/>\ncompetition or trade secret laws.<\/p>\n<\/p>\n<p>1.14 &#8220;<strong>Joint IP<\/strong>&#8221; is defined in <strong>Section 3.1<\/strong>.\n<\/p>\n<\/p>\n<p>1.15 &#8220;<strong>NeoMagic<\/strong> <strong>Royalty<\/strong>&#8221; is defined in<br \/>\n<strong>Section 4.2(b)<\/strong>.<\/p>\n<\/p>\n<p>1.16 &#8220;<strong>Party<\/strong>&#8221; means each of Synapse and NeoMagic.<\/p>\n<\/p>\n<p>1.17 &#8220;<strong>Schedule<\/strong>&#8221; means, for a particular Statement of Work,<br \/>\nthe timeline set forth therein which specifies, among others, the target<br \/>\nschedule for the Parties153 performance under such Statement of Work, including<br \/>\ndesign review and payment schedule.<\/p>\n<\/p>\n<p>1.18 &#8220;<strong>Services<\/strong>&#8221; means, for a particular Statement of Work,<br \/>\nthe services to be provided by Synapse under such Statement of Work.<\/p>\n<\/p>\n<p>1.19 &#8220;<strong>Specifications<\/strong>&#8221; means the logic, functional,<br \/>\nperformance and operational aspects of a version of the USB 3.0 Transceiver IP,<br \/>\nas set forth in, attached to, or referenced in, the related Statement of Work.\n<\/p>\n<\/p>\n<p>1.20 &#8220;<strong>Statement of Work<\/strong>&#8221; means a written description of the<br \/>\nservices to be performed by Synapse under this Agreement in connection with the<br \/>\nUSB 3.0 Transceiver IP, which indicates it is a &#8220;Statement of Work&#8221; under this<br \/>\nAgreement and, other than the Initial Statement of Work, is executed by both<br \/>\nParties. Each Statement of Work will contain or reference a full and complete<br \/>\ndescription of the Services, Specifications, Deliverables, Schedule, Fees,<br \/>\npayment terms and other matters as are agreed by the Parties.<\/p>\n<\/p>\n<p>1.21 &#8220;<strong>SyMagic Transceiver<\/strong>&#8221; means an integrated circuit<br \/>\nmanufactured by or for NeoMagic using a version of the USB 3.0 Transceiver IP,<br \/>\nor any part thereof.<\/p>\n<\/p>\n<p>1.22 &#8220;<strong>Synapse<\/strong> <strong>Royalty<\/strong>&#8221; is defined in<br \/>\n<strong>Section 4.2(a)<\/strong>.<\/p>\n<\/p>\n<p>1.23 &#8220;<strong>Test Chip<\/strong>&#8221; means a silicon engineering prototype of<br \/>\nthe initial SyMagic Transceiver that is manufactured by or for NeoMagic.<\/p>\n<\/p>\n<p>1.24 &#8220;<strong>Third Party IP<\/strong>&#8221; is defined in <strong>Section<br \/>\n3.4<\/strong>.<\/p>\n<\/p>\n<p>1.25 &#8220;<strong>USB 3.0 Transceiver IP<\/strong>&#8221; means the &#8220;USB 3.0 Transceiver<br \/>\nIP,&#8221; as further described in the Initial Statement of Work, including (a) all<br \/>\nDerivatives or other modifications or enhancements thereto made pursuant to<br \/>\nadditional Statements of Work or in connection with any Customer Transaction and<br \/>\n(b) all related materials and Documentation and all updates thereto.<\/p>\n<\/p>\n<p align=\"center\">2<\/p>\n<p align=\"center\">\n<hr>\n<p>1.26 &#8220;<strong>Warranty Period<\/strong>&#8221; is defined in <strong>Section<br \/>\n5.1<\/strong>.<\/p>\n<\/p>\n<p><strong>2. STATEMENTS OF WORK; DELIVERY; ACCEPTANCE<\/strong><\/p>\n<\/p>\n<p>2.1 <u>Statements of Work<\/u>. The initial Statement of Work under this<br \/>\nAgreement is attached as <strong>Exhibit A<\/strong> (the &#8220;<strong>Initial<br \/>\nStatement of Work<\/strong>&#8220;). The Parties may, from time to time agree on<br \/>\nadditional Statements of Work related to the USB 3.0 Transceiver IP. Each<br \/>\nStatement of Work will be consecutively numbered. The Initial Statement of Work<br \/>\nand, upon execution thereof, each other Statement of Work, are deemed part of<br \/>\nthis Agreement and incorporated herein. If the terms of a Statement of Work<br \/>\nconflict with the other terms of this Agreement, the terms of such Statement of<br \/>\nWork will control with respect to the matters covered thereby.<\/p>\n<\/p>\n<p>2.2<u>Performance under Statements of Work<\/u>. Subject to the terms of this<br \/>\nAgreement, Synapse will (a) perform the Services under each Statement of Work,<br \/>\nand (b) develop, design or make the Deliverables according to the Specifications<br \/>\nset forth in each Statement of Work. Synapse will meet the time Schedule set<br \/>\nforth in each Statement of Work. NeoMagic will cooperate fully with Synapse to<br \/>\nallow Synapseto meet each such Schedule. NeoMagic agrees to perform such duties<br \/>\nand tasks as are specified to be performed by NeoMagic in each Statement of<br \/>\nWork.<\/p>\n<\/p>\n<p>2.3 <u>Changes to Statements of Work<\/u>. Any request for changes to a<br \/>\nStatement of Work by must be delivered to the other Party in writing. If the<br \/>\nrequest is proposed by NeoMagic, then, following receipt of such a request,<br \/>\nSynapse will submit to NeoMagic an analysis of how the requested changes would<br \/>\naffect such Statement of Work, including the related Schedule and Fees. If<br \/>\nSynapse proposes a change, its proposal to NeoMagic will include such analysis.<br \/>\nIf the Parties approve such changes, they will execute a written amendment to<br \/>\nsuch Statement of Work which reflects such agreed changes prior to work being<br \/>\ninitiated based on such changes. Thereafter, such Statement of Work will be<br \/>\ndeemed amended and, as such, incorporated into this Agreement.<\/p>\n<\/p>\n<p>2.4 <u>Delivery<\/u>. In addition to any Deliverables specified in a Statement<br \/>\nof Work, Synapse agrees to deliver to NeoMagic on request and in mutually agreed<br \/>\nformats, all design documents, HDL code, scripts, verification reports, spice<br \/>\nnetlists, schematics, characterization data, layer mapping files, simulation<br \/>\nmodels, final design simulation results and other related materials, for each<br \/>\nversion of the USB 3.0 Transceiver IP. Synapse also will electronically deliver<br \/>\nto NeoMagic at least one copy of each of the Deliverables under a Statement of<br \/>\nWork. Documentation may be delivered as on-line electronic documentation.<\/p>\n<\/p>\n<p>2.5 <u>Acceptance<\/u>. Within the applicable Acceptance Period for a<br \/>\nDeliverable provided under a Statement of Work (and, with regard to the Initial<br \/>\nStatement of Work, for the Test Chip), NeoMagic will, with assistance from<br \/>\nSynapse test the Deliverable or the Test Chip, as applicable, to determine<br \/>\nconformance with the applicable Acceptance Criteria. If NeoMagic determines that<br \/>\nsuch item fails to conform to the related Acceptance Criteria, then within the<br \/>\nAcceptance Period, NeoMagic may contact Synapse in writing including providing a<br \/>\ndetailed description of the failure. Following receipt of such a notice of<br \/>\nfailure, Synapse will revise the affected Deliverable and resubmit such item to<br \/>\nNeoMagic, whereupon the foregoing process will be repeated. If the Test Chip<br \/>\nfails to conform to the related Acceptance Criteria, the Parties will meet to<br \/>\ndiscuss how to address such failure. If Synapse does not receive such written<br \/>\nnotice (including a detailed description of the failures) within the applicable<br \/>\nAcceptance Period, such item will be deemed to have achieved Acceptance and<br \/>\nNeoMagic will be deemed to have accepted the applicable item.<\/p>\n<\/p>\n<p><strong>3. IP OWNERSHIP AND LIMITATION ON RIGHTS<\/strong><\/p>\n<\/p>\n<p>3.1 <u>Transfer of Joint IP<\/u>. Subject to the terms and conditions in this<br \/>\nAgreement and other than Third Party IP, Synapse hereby sells, assigns and<br \/>\ntransfers to NeoMagic, and NeoMagic hereby acquires from Synapse, an undivided<br \/>\njoint ownership interest, as tenants in common, in all of Synapse153s right, title<br \/>\nand interest in and to the USB 3.0 Transceiver IP and all related Intellectual<br \/>\nProperty Rights, whether in existence on the Effective Date or hereafter<br \/>\ncreated, including Derivatives thereof created under a Statement of Work or in<br \/>\nconnection with a Customer Transaction (collectively, the &#8220;<strong>Joint<br \/>\nIP<\/strong>&#8220;).<\/p>\n<\/p>\n<p>3.2 <u>Joint Ownership<\/u>. NeoMagic and Synapse further agree as follows:\n<\/p>\n<\/p>\n<p align=\"center\">3<\/p>\n<p align=\"center\">\n<hr>\n<p>(a) <u>Undivided Interest<\/u>. Synapse and NeoMagic shall jointly own equal<br \/>\nundivided interests, as equal tenants in common, in all worldwide right, title<br \/>\nand interest in and to the Joint IP. Subject to the limitations in this<br \/>\n<strong>Section 3 <\/strong>and<strong> Section 9.1<\/strong>, each party shall<br \/>\nhave the right to freely and separately use, exploit, maintain, license, sell,<br \/>\nassign, transfer and enforce its rights in and to the Joint IP, with no royalty<br \/>\npayment or accounting to the other Party in connection with the Joint IP, other<br \/>\nthan as provided in <strong>Section 4<\/strong>.<\/p>\n<\/p>\n<p>(b) <u>Filings, Cooperation, <em>Etc.<\/em><\/u> The Parties153 joint ownership<br \/>\nof the Joint IP will be appropriately indicated in (i) all applications or other<br \/>\ngovernmental filings made concerning the Joint IP, and (ii) all proprietary<br \/>\nrights notices placed on any product consisting of, or incorporating, all or any<br \/>\nportion of the Joint IP. Synapse and NeoMagic will reasonably cooperate with the<br \/>\nother Party with respect to providing information and preparing and filing any<br \/>\ndocuments necessary, including patent applications, to secure their rights with<br \/>\nrespect to Joint IP. Each Party shall notify the other in advance of any<br \/>\nproposed filing of documents, including patent applications and copyright<br \/>\nregistrations, with respect to the Joint IP. If one Party elects not to seek or<br \/>\nsecure such rights in Joint IP in any particular country or not to share equally<br \/>\nin the expense thereof, the other Party will have the right to seek and maintain<br \/>\nsuch protection at its own expense and shall have primary control over the<br \/>\nprosecution and maintenance thereof, even though title to any Intellectual<br \/>\nProperty Rights arising from the Joint IP will be joint (as equal tenants in<br \/>\ncommon as above described). Any Party filing or receiving documents related to<br \/>\nthe prosecution or issuance of any Intellectual Property Rights arising from the<br \/>\nJoint IP will provide copies of such documents to the other Party promptly after<br \/>\nfiling or receipt. Each Party has the right, but not the obligation, to<br \/>\nparticipate in the prosecution or issuance of any Intellectual Property Right<br \/>\nrelated to the Joint IP.<\/p>\n<\/p>\n<p>(c) <u>Enforcement of Rights<\/u>. The Parties agree that they will cooperate<br \/>\nwith each other to the extent reasonably possible to enforce the Intellectual<br \/>\nProperty Rights in the Joint IP against third party infringers. In the absence<br \/>\nof a written agreement to the contrary, the rewards of any infringement claim<br \/>\nagainst a third party to the extent relating to Joint IP, shall be allocated and<br \/>\npaid as follows: first to reimburse the Party or Parties for the costs paid to<br \/>\npursue such infringement claim involving the Joint IP, and after all such costs<br \/>\nare reimbursed or paid, any balance shall be paid to the Parties in proportion<br \/>\nto the amount of costs of such claim involving the Joint IP paid by such Party.\n<\/p>\n<\/p>\n<p>3.3 <u>Exclusion of NeoMagic Developed Technology<\/u>. Nothing in this<br \/>\nAgreement is intended to constitute an assignment by NeoMagic to Synapse of any<br \/>\ntechnology or other Intellectual Property Right, regardless of whether it<br \/>\ncomplements, or is a Derivative of, the Joint IP or whether it was created prior<br \/>\nto or after the Effective Date. NeoMagic is free to modify, update, exploit and<br \/>\ncreate Derivatives of the Joint IP, including the SyMagic Transceiver, without<br \/>\nany obligation to provide, disclose or license any such modifications, updates<br \/>\nor Derivatives to Synapse. In addition, as between the Parties, NeoMagic has<br \/>\nexclusive rights in the &#8220;SyMagic&#8221; trademark.<\/p>\n<\/p>\n<p>3.4 <u>Third Party IP License<\/u>. Prior to including in the USB 3.0<br \/>\nTransceiver IP, technology or other intellectual property not owned by Synapse<br \/>\n(&#8220;<strong>Third Party IP<\/strong>&#8220;), Synapse will so notify NeoMagic in writing.<br \/>\nWith respect to any Third Party IP (and all related Intellectual Property<br \/>\nRights) included in the USB 3.0 Transceiver IP, Synapse hereby grants to<br \/>\nNeoMagic a perpetual, irrevocable, royalty-free, non-exclusive, world-wide<br \/>\nlicense (with a right to sublicense) to use, reproduce, modify, create<br \/>\nDerivatives of, distribute, disclose, perform and display in source and binary<br \/>\nform, such Third Party IP and related Intellectual Property Rights, including<br \/>\nthe right to use, make, have made, offer to sell, sell, have sold and import<br \/>\nproducts, including the SyMagic Transceiver. Synapse hereby confirms that any<br \/>\nlicense fees associated with such Third Party IP or related Intellectual<br \/>\nProperty Rights will be at Synapse153s expense.<\/p>\n<\/p>\n<p>3.5 <u>Limitation on Rights<\/u>. Notwithstanding the joint ownership of the<br \/>\nJoint IP as well as the license granted to NeoMagic in the Third Party IP, the<br \/>\nParties agree as follows:<\/p>\n<\/p>\n<p>(a) Synapse may only market and license the USB 3.0 Transceiver IP as an<br \/>\nembedded IP core, such as part of a &#8220;system on a chip&#8221; (SoC), a chipset or a<br \/>\nchip containing other material functionality. For clarity, Synapse may not<br \/>\nlicense all or any part of the USB 3.0 Transceiver IP, or related Intellectual<br \/>\nProperty Rights, for inclusion in a standalone USB 3.0 transceiver chip nor may<br \/>\nSynapse itself manufacture or distribute such a chip using all or any part of<br \/>\nthe USB 3.0 Transceiver IP.<\/p>\n<\/p>\n<p align=\"center\">4<\/p>\n<p align=\"center\">\n<hr>\n<p>(b) NeoMagic may use the USB 3.0 Transceiver IP and related Intellectual<br \/>\nProperty Rights to manufacture SyMagic Transceivers. Other than in connection<br \/>\nwith the design, modification, manufacture, distribution and use of SyMagic<br \/>\nTransceivers, NeoMagic may not sublicense the USB 3.0 Transceiver IP.<\/p>\n<\/p>\n<p>3.6 <u>Additional Documents<\/u>. Each Party covenants on behalf of itself,<br \/>\nand its successors and assigns, to promptly execute, with acknowledgment and<br \/>\naffidavit, if required, and deliver any and all documents and writings which the<br \/>\nother Party may reasonably request in order to evidence, perform or effectuate<br \/>\nthe transfer of ownership, protection of Intellectual Property Rights, licenses<br \/>\nand other provisions and transactions contemplated hereby, including the<br \/>\nassignment to NeoMagic of the Joint IP hereafter created.<\/p>\n<\/p>\n<p><strong>4. FEES; ROYALTIES; PAYMENT TERMS; TAXES<\/strong><\/p>\n<\/p>\n<p>4.1 <u>Fees<\/u>. NeoMagic agrees to pay to Synapse the Fees set forth in, and<br \/>\nin accordance with the payment terms in, each Statement of Work, <u>provided<\/u><br \/>\nthat Synapse has submitted an invoice to NeoMagic for such amount. Unless<br \/>\notherwise specified in the related Statement of Work, NeoMagic agrees to pay all<br \/>\nsuch Fees within 30 days of its receipt of the related invoice. Other than the<br \/>\nNeoMagic Royalties, the applicable Fees constitute the entire amount payable by<br \/>\nNeoMagic for the Services under the related Statement of Work. The Fees payable<br \/>\nunder the Initial Statement of Work total $1,000,000. Synapse acknowledges and<br \/>\nagrees that other than the applicable Fees and the NeoMagic Royalties, Synapse<br \/>\nis responsible for providing at its own expense all services, personnel,<br \/>\nequipment, licenses and other supplies required to perform such Services.<\/p>\n<\/p>\n<p>4.2 <u>Royalty Obligations.<\/u><\/p>\n<\/p>\n<p>(a) <u>Synapse Royalties<\/u>. Within 30 days after the end of each calendar<br \/>\nquarter, Synapse agrees to pay NeoMagic a royalty (the &#8220;<strong>Synapse<\/strong><br \/>\n<strong>Royalty<\/strong>&#8220;) equal to the percentage specified in <strong>Exhibit<br \/>\nB<\/strong> of the gross licensing fees, royalties and other amounts received by<br \/>\nSynapse (or its affiliates) from selling, licensing or otherwise exploiting the<br \/>\nUSB 3.0 Transceiver IP during the immediately preceding Fiscal Quarter. On<br \/>\ntransactions between Synapse and its affiliates for resale or sublicensing, the<br \/>\nSynapse Royalty shall be paid on the resale or sublicense. Synapse shall bear<br \/>\nall cost of sales for the USB 3.0 Transceiver IP.<\/p>\n<\/p>\n<p>(b) <u>NeoMagic Royalties<\/u>. Within 30 days after the end of each Fiscal<br \/>\nQuarter, NeoMagic agrees to pay Synapse a royalty (the<br \/>\n&#8220;<strong>NeoMagic<\/strong> <strong>Royalty<\/strong>&#8220;) equal to the percentage<br \/>\nspecified in <strong>Exhibit B<\/strong> of the Profit (defined in<br \/>\n<strong>Exhibit B<\/strong>) from sales of the SyMagic Transceivers. On<br \/>\ntransactions between NeoMagic and its affiliates for resale, the NeoMagic<br \/>\nRoyalty shall be paid on the resale.<\/p>\n<\/p>\n<p>(c) <u>Royalty Adjustments<\/u>. If, in connection with a Customer<br \/>\nTransaction, the USB 3.0 Transceiver IP licensee pays the development costs for<br \/>\nchanges to such intellectual property, then the Synapse Royalty and NeoMagic<br \/>\nRoyalty percentages will not be affected. However, if the development costs for<br \/>\nsuch changes are not paid by such licensee, then the Synapse Royalty and<br \/>\nNeoMagic Royalty percentages may be adjusted, if and as agreed by the Parties<br \/>\n(based, at least in part, on the portion of the development costs paid by each<br \/>\nParty). If the Parties are unable to agree on such adjustments within 30 days of<br \/>\ncommencing such discussions, then either Party may submit to an arbitrator, in<br \/>\naccordance with <strong>Section 9.5<\/strong>, a request that such arbitrator<br \/>\nspecify the terms of such adjustments; <u>provided<\/u> that such arbitrator may<br \/>\nnot impose on NeoMagic an obligation to pay any such development costs. The<br \/>\nParties may agree that each will submit to the arbitrator proposed adjustments<br \/>\nfrom which the arbitrator shall select one (aka &#8220;baseball arbitration&#8221;) or the<br \/>\nParties may select an alternate means of resolving such dispute through such<br \/>\narbitration process. In addition to the above, the Parties shall meet to discuss<br \/>\nadjustments to the NeoMagic Royalty percentage no later than 3 years after the<br \/>\nEffective Date.<\/p>\n<\/p>\n<p>4.3 <u>Combination Sales<\/u>. Even if the USB 3.0 Transceiver IP or SyMagic<br \/>\nTransceivers, as applicable, are sold or licensed by Synapse or NeoMagic,<br \/>\nrespectively, in combination with one or more other products or services, the<br \/>\nSynapse Royalty and NeoMagic Royalty will be payable only on the portion of such<br \/>\ncombined price attributable to the USB 3.0 Transceiver IP or SyMagic<br \/>\nTransceivers, as applicable. Such portion will be determined in good faith by<br \/>\nthe Parties.<\/p>\n<\/p>\n<\/p>\n<p align=\"center\">5<\/p>\n<p align=\"center\">\n<hr>\n<p>4.4 <u>Non-Cash Consideration<\/u>. Any item of value in lieu of a cash<br \/>\npayment in consideration of the USB 3.0 Transceiver IP licenses or SyMagic<br \/>\nTransceivers, as applicable, will be valued, for purposes of calculating the<br \/>\nroyalties payable to hereunder, at the fair market value of such compensation<br \/>\n(as reasonably determined by the Parties) and will be considered received by the<br \/>\nreceiving Party as of the date such consideration is granted. If the Parties<br \/>\nfail to agree on the fair market value of such consideration, then Synapse or<br \/>\nNeoMagic, as appropriate, may not enter into the transaction giving rise to such<br \/>\nnon-cash payment.<\/p>\n<\/p>\n<p>4.5 <u>Statements<\/u>. Synapse and NeoMagic shall furnish the other Party,<br \/>\nwithin 30 days of the end of each Fiscal Quarter during the term of this<br \/>\nAgreement in which amounts are payable hereunder a full, complete and accurate<br \/>\nstatement detailing the calculation of the Synapse Royalties and NeoMagic<br \/>\nRoyalties, as applicable, for the preceding Fiscal Quarter.<\/p>\n<\/p>\n<p>4.6 <u>Inspection and Audit Rights<\/u>. Each Party shall have the right once<br \/>\nduring each calendar year and upon at least 30 days153 prior notice, to have<br \/>\nindependent auditors reasonably acceptable to the other Party inspect or audit<br \/>\nsuch other Party153s books and records relating to the calculation of the Synapse<br \/>\nRoyalty or NeoMagic Royalty, as applicable, in order to verify the amounts paid<br \/>\nhereunder. The Party requesting an inspection or audit shall provide at least 30<br \/>\ndays153 prior notice to the other of such inspection or audit. The auditors must<br \/>\nexecute in favor of the audited Party a nondisclosure agreement relating to the<br \/>\ninformation disclosed in the inspection or audit. The audited Party shall fully<br \/>\ncooperate with the auditors in conducting such inspections or audits and shall<br \/>\npermit the auditors to review the books and records that are reasonably<br \/>\nappropriate and necessary to perform the inspection or audit. The cost of an<br \/>\ninspection or audit shall be at the expense of the requesting Party;<br \/>\n<u>provided<\/u>, <u>however<\/u>, if any inspection or audit reveals an<br \/>\nunderpayment of more than 10% of the amounts paid for the period audited, then<br \/>\nthe underpaying Party will reimburse the auditing Party for the auditor153s fees<br \/>\nfor such inspection or audit. The auditor shall disclose to the audited Party<br \/>\nthe basis for any conclusions reached by the auditor. Generally, the auditor may<br \/>\nonly disclose to the requesting Party whether or not there was, and the amount<br \/>\nof, any discrepancy in the amounts paid to such Party. However, if the audited<br \/>\nParty disputes that there was a discrepancy in the payments to the other Party,<br \/>\nthen the auditor may disclose to the requesting Party such information as is<br \/>\nnecessary for the requesting Party to justify the conclusions of the auditor.<br \/>\nUnless disputed by a Party, the applicable Party will pay any shortfall or<br \/>\noverpayment within 30 days after receiving notice of such discrepancy.<\/p>\n<\/p>\n<p>4.7 <u>Currency; Overdue Interest<\/u>. All payments hereunder shall be made<br \/>\nin immediately available funds in United States dollars. All amounts due<br \/>\nhereunder which are not paid when due shall accrue interest from the date due<br \/>\nuntil paid at the per annum rate of 10% or the maximum rate permitted by<br \/>\napplicable law, whichever is less.<\/p>\n<\/p>\n<p>4.8 <u>Taxes; Employees<\/u>.<\/p>\n<\/p>\n<p>(a) <u>Taxes Generally<\/u>. Each party is responsible for the payment of all<br \/>\nsales, use, value added, property, transfer, excise and other taxes and all<br \/>\nexport, import duties and other governmental charges imposed on it in connection<br \/>\nwith this Agreement by any national, federal, state, provincial, regional, local<br \/>\nor special purpose governmental authority.<\/p>\n<\/p>\n<p>(b) <u>Employee Liability<\/u>. Without limiting the foregoing, Synapse<br \/>\nunderstands and agrees that NeoMagic is not responsible for any employer taxes<br \/>\nor expenses of any sort relating to Synapse153s employees or any other person<br \/>\nperforming the Services hereunder, including all state and federal payroll taxes<br \/>\nand worker153s compensation coverage. Synapse agrees that as between the Parties,<br \/>\nSynapse153s employees and subcontractors are under its control and are not<br \/>\nentitled to any benefits of employment provided by NeoMagic to its employees.<br \/>\nSynapse agrees to indemnify and hold NeoMagic harmless from all losses, damages,<br \/>\ncosts and expenses, including penalties, interest and reasonable attorneys153<br \/>\nfees, in connection with any obligation imposed on NeoMagic resulting from any<br \/>\nemployee or subcontractor of Synapse being determined to be otherwise entitled<br \/>\nto the benefits of employment provided by NeoMagic to its respective employees.\n<\/p>\n<\/p>\n<p><strong>5. PERFORMANCE WARRANTY<\/strong><\/p>\n<\/p>\n<p>5.1 <u>Services and Performance Warranty<\/u>. Synapse warrants that the<br \/>\nServices will be performed in a workmanlike manner, in conformity with the<br \/>\nprofessional standards for comparable services in the industry. If the foregoing<br \/>\nwarranty is breached, Synapse shall immediately reperform the deficient Services<br \/>\nand correct the breach at no additional cost to NeoMagic or, at NeoMagic153s<br \/>\noption, refund the amounts paid for such Services. Synapse also warrants to<br \/>\nNeoMagic with respect to each version of the USB 3.0 Transceiver IP for a period<br \/>\nof 1 year from the delivery by Synapse to NeoMagic of the GDSII stream files of<br \/>\nsuch version (the &#8220;<strong>Warranty Period<\/strong>&#8220;), that such version of the<br \/>\nUSB 3.0 Transceiver IP will conform to the applicable Specifications. If within<br \/>\nthe applicable Warranty Period NeoMagic informs Synapse of the breach of the<br \/>\nforegoing warranty, Synapse agrees to modify or replace the affected version of<br \/>\nthe USB 3.0 Transceiver IP so that it conforms to such warranty.<\/p>\n<\/p>\n<p align=\"center\">6<\/p>\n<p align=\"center\">\n<hr>\n<p>5.2 <u>Warranty Limitations and Exclusions<\/u>. Without limiting the<br \/>\ngenerality of the foregoing, Synapse153s warranty does not cover and no warranty<br \/>\nis made with respect to failures caused by alterations or repairs made by<br \/>\nNeoMagic. <strong>Except for the express warranties stated in this Agreement,<br \/>\nSynapse makes no other representations or warranties express, implied, statutory<br \/>\nor otherwise regarding the USB 3.0 Transceiver IP. Synapse expressly disclaims<br \/>\nall implied warranties of merchantability and fitness for a particular purpose<br \/>\nand noninfringement of intellectual property rights with regard to the USB 3.0<br \/>\nTransceiver IP.<\/strong><\/p>\n<\/p>\n<p><strong>6. INDEMNITY<\/strong><\/p>\n<\/p>\n<p>6.1 <u>Warranty and Indemnity by Synapse<\/u>. Synapse hereby represents and<br \/>\nwarrants that each version of the USB 3.0 Transceiver IP and the use and<br \/>\ndistribution thereof, does not infringe any third party Intellectual Property<br \/>\nRight. Synapse agrees, at its own expense, to defend, indemnify and hold<br \/>\nNeoMagic and its officers, directors, employees, licensees, customers and<br \/>\ndistributors (each an &#8220;<strong>Indemnified Party<\/strong>&#8220;) harmless from any<br \/>\nclaim or action (a &#8220;<strong>Claim<\/strong>&#8220;) brought against such Indemnified<br \/>\nParty to the extent (a) it is based on a claim that a version of the USB 3.0<br \/>\nTransceiver IP, including as incorporated into a SyMagic Transceiver, infringes,<br \/>\nviolates or misappropriates any patent, copyright, trade secret or other<br \/>\nIntellectual Property Right of a third party, (b) arising from or related to an<br \/>\nassertion that Synapse has violated the terms of any agreement under a Customer<br \/>\nTransaction, or (c) arising from or related to: any act or omission of Synapse,<br \/>\nits employees, agents, or subcontractors; the performance of this Agreement; the<br \/>\npresence of Synapse or its personnel on NeoMagic premises or the driving of<br \/>\nNeoMagic153s motor vehicles. The defense fees and costs relating thereto will be<br \/>\npaid by Synapse as incurred. NeoMagic agrees to provide Synapse with: (i) prompt<br \/>\nwritten notification of such Claim; (ii) sole control and authority over the<br \/>\ndefense or settlement thereof (but subject to NeoMagic153s approval); and (iii)<br \/>\nreasonably available information and assistance in connection with such Claim,<br \/>\nat Synapse153s expense.<\/p>\n<\/p>\n<p>6.2 <u>Limited Remedies<\/u>. If a version of the USB 3.0 Transceiver IP<br \/>\nbecomes, or in the opinion of Synapse is likely to become, the subject of an<br \/>\ninfringement Claim, Synapse shall either (a) procure, at no cost to NeoMagic,<br \/>\nthe right to continue using such version of the USB 3.0 Transceiver IP or (b)<br \/>\nreplace or modify such version with a functionally equivalent product that is<br \/>\nnon-infringing.<\/p>\n<\/p>\n<p>6.3 <u>Exceptions<\/u>. Synapse will have no liability under this<br \/>\n<strong>Section 6<\/strong> for any Claim to the extent (a) a Claim of<br \/>\ninfringement relates to modifications of the USB 3.0 Transceiver IP, or portions<br \/>\nthereof, made NeoMagic or its representatives or (b) attributable to the sole<br \/>\nnegligence of NeoMagic.<\/p>\n<\/p>\n<p><strong>7. CONFIDENTIALITY<\/strong><\/p>\n<\/p>\n<p>7.1 <u>Generally<\/u>. Synapse and NeoMagic will not reveal to any other party<br \/>\n(except as permitted below) or use (except as contemplated by this Agreement),<br \/>\nany Confidential Information of the other Party. Without limiting the foregoing,<br \/>\neach Party agrees to use at least the same standard of care to protect the other<br \/>\nParty153s Confidential Information from disclosure as such Party uses to protect<br \/>\nits own information of like importance, but in any event not less than a<br \/>\nreasonable degree of care. Without limiting the foregoing, each Party agrees to<br \/>\nonly disclose the Confidential Information of the other Party to its employees<br \/>\nand subcontractors with a need to know such information in connection with such<br \/>\nParty performing its obligations or exercising its rights under this Agreement<br \/>\nand which employees and subcontractors are subject to confidentiality<br \/>\nobligations regarding such Confidential Information at least as protective as<br \/>\nthis <strong>Section 7.1<\/strong>. This Section will not prohibit disclosure of<br \/>\nConfidential Information pursuant to the order or requirement of a court,<br \/>\nadministrative agency, or other governmental body or in connection with the<br \/>\nenforcement of this Agreement; <u>provided<\/u>, <u>however<\/u>, that the<br \/>\nreceiving Party will provide prompt notice thereof to enable the disclosing<br \/>\nParty to seek a protective order or otherwise prevent such disclosure.<\/p>\n<\/p>\n<p align=\"center\">7<\/p>\n<p align=\"center\">\n<hr>\n<p>7.2 <u>Independent Development<\/u>. Each Party understands that the other<br \/>\nParty may currently or in the future be developing information internally<br \/>\nwithout the use of the other Party153s Confidential Information, or receiving<br \/>\ninformation from third parties that may be similar to the Confidential<br \/>\nInformation of the other Party. Accordingly, nothing in this Agreement will be<br \/>\nconstrued as a representation or inference that either Party will not develop<br \/>\nproducts, or have products developed for it, or enter into joint ventures,<br \/>\nalliances, or licensing arrangements that, without violation of this Agreement,<br \/>\ncompete with the products or systems embodying the Confidential Information of<br \/>\nthe other Party.<\/p>\n<\/p>\n<p>7.3 <u>USB 3.0 Transceiver IP<\/u>. Each Party agrees to keep confidential and<br \/>\nnot to disclose confidential or proprietary information regarding USB 3.0<br \/>\nTransceiver IP to any third party, other than (a) in connection with any<br \/>\ntransaction permitted pursuant to this Agreement, <u>provided<\/u> that such<br \/>\ndisclosure shall be limited to the minimum amount of information needed to be<br \/>\nprovided and shall be subject to confidentiality obligations regarding such<br \/>\ninformation at least as protective as <strong>Section 7.1<\/strong>, (b) in<br \/>\nconfidence to its affiliates, actual or potential investors, banks, lawyers,<br \/>\naccountants and other professional advisors, (c) in connection with the<br \/>\nenforcement of its rights under this Agreement, (d) as may be required by law,<br \/>\nand (e) in confidence in connection with a merger or acquisition or a proposed<br \/>\nmerger or acquisition.<\/p>\n<\/p>\n<p>7.4 <u>Terms of this Agreement<\/u>. Each party agrees to keep confidential<br \/>\nand not to disclose the terms and conditions of this Agreement to any third<br \/>\nparty other than (a) in confidence to its affiliates, actual or potential<br \/>\ninvestors, banks, lawyers, accountants and other professional advisors, (b) in<br \/>\nconnection with the enforcement of its rights under this Agreement, (c) as may<br \/>\nbe required by law, including in connection with the requirements of a public<br \/>\noffering or securities filing, and (d) in confidence in connection with a merger<br \/>\nor acquisition or a proposed merger or acquisition.<\/p>\n<\/p>\n<p><strong>8. TERM AND TERMINATION<\/strong><\/p>\n<\/p>\n<p>8.1 <u>Term<\/u>. The term of this Agreement commences on the Effective Date<br \/>\nand is terminated as provided below. Each Statement of Work commences on its<br \/>\ndate of execution and ends upon completion of the Services thereunder, unless<br \/>\nsooner terminated as provided in this Agreement or such Statement of Work.<\/p>\n<\/p>\n<p>8.2 <u>Termination Due to Breach; Insolvency.<\/u><\/p>\n<\/p>\n<p>(a) <u>Breach<\/u>. Either Party may terminate any or all Statements of Work<br \/>\nand this Agreement if the other Party materially breaches this Agreement and<br \/>\nsuch breach has not been cured within 30 business days after receipt of written<br \/>\nnotice of such default.<\/p>\n<\/p>\n<p>(b) <u>Insolvency<\/u>. A Party may terminate any or all Statements of Work<br \/>\nand this Agreement if the other Party (i) becomes insolvent; (ii) makes an<br \/>\nassignment for the benefit of its creditors; (iii) files or has filed against it<br \/>\na petition in bankruptcy or seeking a re-organization; (iv) has a receiver<br \/>\nappointed; or (iv) institutes any proceedings for liquidation or winding-up.<\/p>\n<\/p>\n<p>8.3 <u>NeoMagic153s Termination for Convenience<\/u>. NeoMagic may terminate any<br \/>\nStatement of Work without cause at any time.<\/p>\n<\/p>\n<p>8.4 <u>Effect of Termination<\/u>.<\/p>\n<\/p>\n<p>(a) <u>Initial Statement of Work<\/u>. If NeoMagic terminates the Initial<br \/>\nStatement of Work under <strong>Section 8.3<\/strong> prior to delivery of the<br \/>\nGDSII Deliverable thereunder, NeoMagic will be obligated to pay 50% of the<br \/>\nServices costs, if any, not covered by previous installments, <u>provided<\/u><br \/>\nthat such portion will not exceed the next scheduled installment payment amount.\n<\/p>\n<\/p>\n<p align=\"center\">8<\/p>\n<p align=\"center\">\n<hr>\n<p>(b) <u>Survival of Obligations<\/u>. Unless terminated as set forth above, the<br \/>\nStatements of Work in effect on the effective date of termination of this<br \/>\nAgreement shall survive and continue until completion of such Statements of Work<br \/>\nor their earlier termination, and the applicable provisions of this Agreement<br \/>\nshall continue to apply thereto. The termination or expiration of this Agreement<br \/>\nor any Statement of Work for any reason will terminate the obligations of the<br \/>\nParties under such document. However, the provisions of <strong>Sections 1, 2.4,<br \/>\n3, 4, 5, 6, 7, 8 and 9 <\/strong>and <strong>Exhibit B<\/strong>, will remain in<br \/>\nfull effect following termination or expiration of this Agreement. Also,<br \/>\ntermination or expiration will not affect any accrued payment obligation under<br \/>\nthis Agreement or any Statement of Work, nor will it affect either Party153s right<br \/>\nto pursue remedies under this Agreement or such Statement of Work arising prior<br \/>\nto termination or expiration. In addition, upon the termination of a Statement<br \/>\nof Work (with or without termination of this Agreement) each Party shall return<br \/>\nto the other any Confidential Information of the other Party in whatever form<br \/>\nrelating to such Statement of Work, to the extent not needed in connection with<br \/>\nany license or other rights which survive such termination. Termination of this<br \/>\nAgreement or a Statement of Work is not an exclusive remedy.<\/p>\n<\/p>\n<p><strong>9. GENERAL TERMS<\/strong><\/p>\n<\/p>\n<p>9.1 <u>Insurance<\/u>.<\/p>\n<\/p>\n<p>(a) <u>Required Insurance<\/u>. Synapse shall procure and maintain in effect<br \/>\nthe following policies of insurance covering liability arising from this<br \/>\nAgreement: (i) all insurance coverage153s required by Federal and State law,<br \/>\nincluding worker153s compensation and employer153s liability all with statutory<br \/>\nminimum limits; (ii) general comprehensive liability insurance, with at least<br \/>\n$1,000,000.00 combined single limit and aggregate, including personal injury or<br \/>\ndeath of any persons and injury to or destruction of property, including loss of<br \/>\nuse resulting therefrom; and (iii) business automobile liability, covering all<br \/>\nowned, non-owned and hired automobiles of Synapse, with a combined single limit<br \/>\nof liability of at least $1,000,000.00 for bodily injury and property damage for<br \/>\neach accident.<\/p>\n<\/p>\n<\/p>\n<p>(b) <u>Evidence of Insurance and Endorsements<\/u>. Synapse shall cause its<br \/>\ninsurers to issue endorsements naming NeoMagic as additional insured or loss<br \/>\npayee, as appropriate, on all such insurance policies (except for workers153<br \/>\ncompensation insurance). Upon execution of this Agreement, Synapse shall provide<br \/>\nNeoMagic with certificates of insurance evidencing such coverage and<br \/>\nendorsements and providing that such coverage is primary and that no such<br \/>\ncoverage shall be subject to cancellation or material change without 30 days<br \/>\nprior written notice to NeoMagic. The insurance requirements hereunder shall not<br \/>\nlimit or relieve Synapse of its duties, responsibilities or liabilities under<br \/>\nthis Agreement. Synapse shall maintain such insurance and endorsements from the<br \/>\nEffective Date until at least 2 years following the termination of this<br \/>\nAgreement.<\/p>\n<\/p>\n<\/p>\n<p>9.2 <u>Assignment<\/u>. The rights and obligations of each Party under this<br \/>\nAgreement, including each Statement of Work, will not be capable of being<br \/>\nassigned or delegated without the prior written consent of the other Party for<br \/>\nthe first 5 years following the Effective Date. Notwithstanding the foregoing,<br \/>\neither Party may assign and delegate its rights and obligations under this<br \/>\nAgreement to any successor to any of the USB 3.0 Transceiver IP or SyMagic<br \/>\nTransceiver, as applicable, business units, without the prior written consent of<br \/>\nthe other Party; <u>provided<\/u>, that Synapse may not so assign this Agreement<br \/>\nwithout NeoMagic153s consent prior to achieving the final payment milestone under<br \/>\nthe Initial Statement of Work. The Parties also agree that any assignment of the<br \/>\nJoint IP (by either Party) also must include assumption of the related<br \/>\nobligations under this Agreement.<\/p>\n<\/p>\n<p>9.3 <u>Notices<\/u>. All notices given by either Party under this Agreement<br \/>\nwill be in writing and may be given via facsimile (with proof of confirmation of<br \/>\nreceipt), email (with confirmed receipt) or overnight mail by a nationally<br \/>\nrecognized courier, addressed as specified below, as updated by either Party. A<br \/>\nnotice so addressed is effective on the date it is received.<\/p>\n<\/p>\n<table style=\"width: 100%;\" width=\"100%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\" valign=\"top\"><\/td>\n<td width=\"35%\" valign=\"top\">\n<p><strong>For Synapse:<\/strong><\/p>\n<\/td>\n<td width=\"41%\" valign=\"top\">\n<p><strong>For NeoMagic:<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"5%\" valign=\"top\"><\/td>\n<td width=\"35%\" valign=\"top\">\n<p>Synapse Design Automation, Inc.<\/p>\n<\/td>\n<td width=\"41%\" valign=\"top\">\n<p>NeoMagic Corporation<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"5%\" valign=\"top\"><\/td>\n<td width=\"35%\" valign=\"top\">\n<p>150 South Almaden Blvd., Suite #1380<\/p>\n<\/td>\n<td width=\"41%\" valign=\"top\">\n<p>2372-A Qume Drive<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"5%\" valign=\"top\"><\/td>\n<td width=\"35%\" valign=\"top\">\n<p>San Jose, California 95113<\/p>\n<\/td>\n<td width=\"41%\" valign=\"top\">\n<p>San Jose, California 95131<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"5%\" valign=\"top\"><\/td>\n<td width=\"35%\" valign=\"top\">\n<p>Attn: James J. Hemeon<\/p>\n<\/td>\n<td width=\"41%\" valign=\"top\">\n<p>Attn: Syed Zaidi<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"5%\" valign=\"top\"><\/td>\n<td width=\"35%\" valign=\"top\">\n<p>Tel:<\/p>\n<\/td>\n<td width=\"41%\" valign=\"top\">\n<p>Tel:<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"5%\" valign=\"top\"><\/td>\n<td width=\"35%\" valign=\"top\">\n<p>Fax:<\/p>\n<\/td>\n<td width=\"41%\" valign=\"top\">\n<p>Fax:<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"5%\" valign=\"top\"><\/td>\n<td width=\"35%\" valign=\"top\">\n<p>Email: james@synapse-da.com<\/p>\n<\/td>\n<td width=\"41%\" valign=\"top\">\n<p>Email: szaidi@NeoMagic.com<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"5%\" valign=\"top\"><\/td>\n<td width=\"35%\" valign=\"top\">\n<p>With a copy to:<\/p>\n<\/td>\n<td width=\"41%\" valign=\"top\">\n<p>With a copy to:<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"5%\" valign=\"top\"><\/td>\n<td width=\"35%\" valign=\"top\">\n<p>Rosheni Fernando (at the same address)<\/p>\n<\/td>\n<td width=\"41%\" valign=\"top\">\n<p>Charlotte Wilson (at the same address)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"5%\" valign=\"top\"><\/td>\n<td width=\"35%\" valign=\"top\">\n<p>Email: clients@synapse-da.com<\/p>\n<\/td>\n<td width=\"41%\" valign=\"top\">\n<p>Email: cwilson@NeoMagic.com<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<p align=\"center\">9<\/p>\n<p align=\"center\">\n<hr>\n<p>9.4 <u>Governing Law; Jurisdiction and Venue<\/u>. This Agreement will in all<br \/>\nrespects be governed by the laws of the State of California, without reference<br \/>\nto its principles of conflicts of laws. This Agreement will not be governed by<br \/>\nthe United Nations Convention of Contracts for the International Sale of Goods,<br \/>\nthe application of which is expressly excluded. Subject to <strong>Section<br \/>\n9.5<\/strong>, the California state courts of Santa Clara County and federal<br \/>\ncourts of the Northern District of California will have exclusive jurisdiction<br \/>\nand venue over any dispute arising out of or relating to this Agreement (other<br \/>\nthan to enforce a judgment), and each Party hereby consents to the jurisdiction<br \/>\nand venue of such courts.<\/p>\n<\/p>\n<p>9.5 <u>Arbitration<\/u>. Any dispute or claim arising out of or in connection<br \/>\nwith this Agreement or the performance, breach or termination hereof, shall be<br \/>\nfinally settled by binding arbitration in accordance with the then-current rules<br \/>\nof JAMS by 1 arbitrator. Such arbitration proceeding shall be held in San Jose,<br \/>\nCalifornia. The decision and\/or award rendered by the arbitrator shall be<br \/>\nwritten, final and non-appealable and may be entered in any court of competent<br \/>\njurisdiction. The costs of any arbitration, including administrative fees and<br \/>\nfees of the arbitrator, shall be shared equally by the Parties, unless otherwise<br \/>\ndetermined by the arbitrator. The Parties agree that, any provision of<br \/>\napplicable law notwithstanding, they will not request, and the arbitrator shall<br \/>\nhave no authority to award, punitive or exemplary damages against any Party. The<br \/>\narbitrator may grant permanent injunctions or other relief in such dispute or<br \/>\nclaim. Notwithstanding the foregoing, without breach of this arbitration<br \/>\nprovision, either Party may apply to any court of competent jurisdiction for<br \/>\ntemporary injunctive relief or to collect any amounts owed by the other Party<br \/>\nunder this Agreement.<\/p>\n<\/p>\n<p>9.6 <u>Disclaimer of Consequential Damages<\/u>. <strong>In no event will<br \/>\neither Party be liable for indirect, special, incidental, consequential or<br \/>\nspecial damages of any nature whatsoever, (including loss of production, profits<br \/>\nor use of facilities, promotional or manufacturing expenses, or overhead, or<br \/>\ninjury to reputation), arising out of or in connection with any claim arising<br \/>\nhereunder, even if such Party has been advised of the possibility of such<br \/>\ndamages. <\/strong>The limitations in this Section will not apply to breach of,<br \/>\nor liability under, <strong>Section 6 or 7<\/strong>.<\/p>\n<\/p>\n<p>9.7 <u>Entire Agreement<\/u>. Both Parties agree that this Agreement,<br \/>\nincluding each Statement of Work, is the complete and exclusive statement of<br \/>\nagreement between the Parties and supersedes all proposals, oral or written, and<br \/>\nall other communications relating to the subject matter of this Agreement,<br \/>\nincluding that certain Memorandum of Understanding dated April 9, 2010. Any and<br \/>\nall preprinted terms and conditions appearing on the face and reverse sides, if<br \/>\nany, of a purchase order or quotation will not apply to or become a part of this<br \/>\nAgreement, and will be superseded in their entirety by this Agreement.<\/p>\n<\/p>\n<p>9.8 <u>Modifications; Waiver<\/u>. This Agreement may be modified or amended<br \/>\nonly by a written instrument duly signed by authorized representatives of the<br \/>\nParty to be bound thereby. Failure or delay in enforcing any term, provision or<br \/>\ncondition of this Agreement by either Party will not operate as a waiver<br \/>\nthereof, and no waiver of any term, provision or condition of this Agreement<br \/>\nwill be valid unless in writing and signed by authorized representatives of the<br \/>\nParty to be bound thereby. Any waiver by either Party of any condition, part,<br \/>\nterm or provision of this Agreement will not operate or be considered as a<br \/>\nwaiver of any other condition, part, term or provision of a waiver of any future<br \/>\nevent or circumstance.<\/p>\n<\/p>\n<p>9.9 <u>Severability<\/u>. If any provision of this Agreement is adjudged by<br \/>\nany court of competent jurisdiction to be unenforceable or invalid, that<br \/>\nprovision will be limited or eliminated to the minimum extent necessary so that<br \/>\nthis Agreement will be enforceable and otherwise remain in full force and<br \/>\neffect.<\/p>\n<\/p>\n<p>9.10 <u>Relationship of Parties<\/u>. The relationship between the Parties is<br \/>\nthat of independent contractors. This Agreement does not constitute a<br \/>\npartnership or joint venture between Synapse and NeoMagic. Neither Party is the<br \/>\nrepresentative or agent of the other Party and neither will so hold itself out<br \/>\npublicly or to any third party or incur any liability for the other. The Parties<br \/>\nagree to act in good faith in connection with their performance of this<br \/>\nAgreement and in connection with any consent required hereunder.<\/p>\n<\/p>\n<p align=\"center\">10<\/p>\n<p align=\"center\">\n<hr>\n<p>9.11 <u>Export\\Re-Export<\/u>. NeoMagic acknowledges that the laws and<br \/>\nregulations of the United States restrict the export and reexport of commodities<br \/>\nand technical data of United States origin, which may include some or all of the<br \/>\nUSB 3.0 Transceiver IP. NeoMagic agrees, and will cause each of its transferees<br \/>\nof the SyMagic Transceivers to agree, not to export or re-export such items or<br \/>\nany part thereof, in any form, without obtaining the appropriate United States<br \/>\nand foreign government licenses.<\/p>\n<\/p>\n<p>9.12 <u>Other Interpretive Provisions<\/u>. References in this Agreement to<br \/>\n&#8220;Sections&#8221; and &#8220;Exhibits&#8221; are to sections and exhibits herein and hereto unless<br \/>\notherwise indicated. The words &#8220;include&#8221; and &#8220;including&#8221; and words of similar<br \/>\nimport when used in this Agreement will not be construed to be limiting or<br \/>\nexclusive. Except as provided in a particular context, the word &#8220;or&#8221; when used<br \/>\nin this Agreement may mean each as well as all alternatives. Headings in this<br \/>\nAgreement are for convenience of reference only and are not part of the<br \/>\nsubstance hereof. All terms defined in this Agreement in the singular form will<br \/>\nhave comparable meanings when used in the plural form and <em>vice versa<\/em>.\n<\/p>\n<\/p>\n<p>9.13 <u>Counterparts<\/u>. This Agreement may be executed in counterparts,<br \/>\neach of which will be deemed an original, but both of which together will<br \/>\nconstitute one and the same instrument.<\/p>\n<\/p>\n<p>WITNESSETH, the Parties hereto have caused this Agreement to be executed by<br \/>\ntheir duly authorized representatives on the dates indicated below and to be<br \/>\neffective as of the Effective Date.<\/p>\n<\/p>\n<\/p>\n<table style=\"width: 100%;\" width=\"100%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\" valign=\"top\">\n<p><strong>NeoMagic Corporation<\/strong><\/p>\n<\/td>\n<td width=\"14%\" valign=\"top\">\n<p><strong>Synapse Design Automation, Inc.<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"14%\" valign=\"top\"><\/td>\n<td width=\"14%\" valign=\"top\"><\/td>\n<\/tr>\n<tr>\n<td width=\"14%\" valign=\"top\"><\/td>\n<td width=\"14%\" valign=\"top\"><\/td>\n<\/tr>\n<tr>\n<td width=\"14%\" valign=\"top\">\n<p>By: <u>\/s\/ Syed Zaidi<\/u><\/p>\n<\/td>\n<td width=\"14%\" valign=\"top\">\n<p>By: <u>\/s\/ James J. Hemeon<\/u><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"14%\" valign=\"top\">\n<p>Name: Syed Zaidi<\/p>\n<\/td>\n<td width=\"14%\" valign=\"top\">\n<p>Name: James J. Hemeon<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"14%\" valign=\"top\">\n<p>Title: President and Chief Executive Officer<\/p>\n<\/td>\n<td width=\"14%\" valign=\"top\">\n<p>Title: Sr. Director WW Sales<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"14%\" valign=\"top\">\n<p>Date: May 5, 2010<\/p>\n<\/td>\n<td width=\"14%\" valign=\"top\">\n<p>Date: May 5, 2010<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<p align=\"center\">11<\/p>\n<p align=\"center\"><\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[8317],"corporate_contracts_industries":[9512],"corporate_contracts_types":[9613,9616],"class_list":["post-42540","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-neomagic-corp","corporate_contracts_industries-technology__semiconductors","corporate_contracts_types-operations","corporate_contracts_types-operations__ip"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/42540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=42540"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=42540"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=42540"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=42540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}