<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 28, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number: 0-27016
ROSS TECHNOLOGY, INC.
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE 74-2507960
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
Two Ceilo Center, Third Floor
1250 Capital of Texas Highway,
South Austin, Texas 78746
(512) 329-2499
(Address and Telephone Number of Principal Executive Offices)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
[X] Yes [ ] No
Number of shares outstanding of each of the issuer's classes of common stock,
as of November 11, 1998: Common Stock, $.001 par value, 23,476,965 shares.
<PAGE> 2
QUARTERLY REPORT ON FORM 10-Q
THREE MONTHS ENDED JUNE 29, 1998
INDEX
<TABLE>
<CAPTION>
<S> <C> <C>
Title Page.................................................................. 1
Index....................................................................... 2
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
Condensed Consolidated Balance Sheets - September 28, 1998
and March 30, 1998........................................... 3
Condensed Consolidated Statements of Operations for the
Three and Six Months Ended September 28, 1998 and
September 29, 1997........................................... 4
Condensed Consolidated Statements of Cash Flows for the Six
Months Ended September 28, 1998 and September 29, 1997....... 5
Notes to Condensed Consolidated Financial Statements......... 6
ITEM 2. Managements's Discussion and Analysis of Financial
Condition and Results of Operations.......................... 9
PART II - OTHER INFORMATION
ITEM 1. Legal proceedings........................................... 12
ITEM 2. Changes in Securities....................................... 12
ITEM 3. Defaults Upon Senior Securities............................. 12
ITEM 4. Submission of Matters to a Vote of Security-Holders......... 12
ITEM 5. Other Information........................................... 12
ITEM 6. Exhibits and Reports on Form 8-K............................ 12
SIGNATURES................................................................. 13
</TABLE>
2
<PAGE> 3
Part 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ROSS TECHNOLOGY, INC.
AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 28, MARCH 30,
1998 1998
------------- ---------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents................................. $ 7,048 $ 787
Trade accounts receivable................................. 1,668 2,712
Receivable from Fujitsu................................... 607 3,343
Inventory................................................. 1,930 7,808
Prepaid expenses and other assets......................... 2 512
-------- -------
Total current assets.............................. 11,255 15,162
Property and equipment, net................................. 696 3,325
-------- -------
Total assets................................................ $ 11,951 $18,487
======== =======
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Trade accounts payable.................................... $ 619 $ 6,091
Accrued shutdown costs.................................... 3,200 --
Accrued severance costs................................... 2,420 --
Accrued warranty and production costs..................... 1,772 647
Accrued liabilities....................................... 1,061 4,436
Payable to Fujitsu........................................ 1,318 1,293
Notes payable............................................. 20,000 15,000
-------- -------
Total current liabilities......................... 30,390 27,467
-------- -------
Total stockholders' deficit....................... (18,439) (8,980)
-------- -------
Total liabilities and stockholders' deficit................. $ 11,951 $18,487
======== =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE> 4
ROSS TECHNOLOGY, INC.
AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
SEPTEMBER 29, SEPTEMBER 28, SEPTEMBER 29, SEPTEMBER 28,
1997 1998 1997 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net sales................................. $11,472 $ 4,396 $23,285 $12,229
Cost of sales............................. 10,063 4,402 21,238 10,992
------- ------- ------- -------
Gross profit............................ 1,409 (6) 2,047 1,237
------- ------- ------- -------
Operating expenses:
Research and development, net........... (152) 765 1,394 3,811
Selling, general and administrative..... 3,535 3,880 7,135 6,954
Severance costs......................... -- -- -- 5,248
Shutdown costs.......................... -- 4,125 -- 4,125
------- ------- ------- -------
Total operating expenses........ 3,383 8,770 8,529 20,138
------- ------- ------- -------
Gain on sale of subsidiary.............. -- 2,500 -- 2,500
Gain on sale of intellectual property... -- 7,550 -- 7,550
------- ------- ------- -------
Income (loss) from operations... (1,974) 1,274 (6,482) (8,851)
Interest expense, net..................... (933) (296) (1,584) (608)
------- ------- ------- -------
Income (loss) before income
taxes......................... (2,907) 978 (8,066) (9,459)
Income tax provision (benefit)............ -- -- -- --
------- ------- ------- -------
Net income (loss)............... $(2,907) $ 978 $(8,066) $(9,459)
======= ======= ======= =======
Net income (loss) applicable to common
shareholders............................ $(2,907) $ 978 $(8,066) $(9,459)
======= ======= ======= =======
Basic net income (loss) per share......... $ (0.12) $ .04 $ (0.34) $ (0.40)
======= ======= ======= =======
Weighted average common shares
outstanding -- Basic.................... 23,547 23,477 23,542 23,477
======= ======= ======= =======
Diluted net income (loss) per share....... $ (0.12) $ 0.02 $ (0.34) $ (0.40)
======= ======= ======= =======
Weighted average common shares
outstanding -- Diluted.................. 23,547 43,477 23,542 23,477
======= ======= ======= =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE> 5
ROSS TECHNOLOGY, INC.
AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS SIX MONTHS
ENDED ENDED
SEPTEMBER 28, SEPTEMBER 29,
1998 1997
------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
Cash flows from operating activities:
Net loss.................................................. $(9,459) $(8,066)
Adjustments to reconcile net loss to cash
provided by (used in) operating activities:
Depreciation and amortization.......................... 1,642 2,822
Write-down of property and equipment................... 1,089 --
Change in assets and liabilities:
Trade accounts receivable............................ 1,044 5,041
Receivable from Fujitsu.............................. 2,736 (4,758)
Inventory............................................ 5,878 1,850
Prepaid expenses..................................... 510 539
Trade accounts payable............................... (5,472) (7,224)
Accrued shutdown costs............................... 3,200 --
Accrued severance costs.............................. 2,420 --
Accrued warranty and production costs................ 1,125 --
Payable to Fujitsu................................... 25 4,946
Accrued liabilities.................................. (3,375) (5,117)
------- -------
Net cash provided by (used in) operating
activities...................................... 1,363 (9,967)
------- -------
Cash flows from investing activities:
Capital expenditures...................................... (102) (1,419)
------- -------
Cash flows from financing activities:
Proceeds from issuance of common stock.................... -- 11
Proceeds from borrowings on notes payable................. 5,000 12,500
------- -------
Net cash provided by financing activities............ 5,000 12,511
------- -------
Net increase in cash and cash equivalents............ 6,261 1,125
Cash and cash equivalents at beginning of period............ 787 2,811
------- -------
Cash and cash equivalents at end of period.................. $ 7,048 $ 3,936
======= =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
5
<PAGE> 6
ROSS TECHNOLOGY, INC.
AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(1) FINANCIAL STATEMENT PRESENTATION
The preceding financial statements of ROSS Technology, Inc. and subsidiary
(the "Company") have been prepared without audit pursuant to the rules and
regulations of the Securities and Exchange Commission (the "SEC") and, in the
opinion of management, reflect all adjustments necessary, such adjustments being
of a normal recurring nature, to present fairly the financial condition and the
results of operations for such interim periods. As a result of the Company's
continued financial deterioration, in July 1998, the Company's Board of
Directors adopted and Fujitsu Limited ("Fujitsu"), as the holder of a majority
of the outstanding shares of Common Stock entitled to vote and all outstanding
shares of Preferred Stock, approved the Plan of Complete Liquidation and
Dissolution. As a result of this action, the Company changed its basis of
accounting from a going concern basis to a liquidation basis. Accordingly, the
carrying values of assets as of September 28, 1998 are presented at estimated
net realizable values and liabilities are presented at estimated amounts
required to liquidate and dissolve the Company. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations; however, management believes that the
disclosures are adequate to make the information presented not misleading. It is
suggested that these financial statements be read in conjunction with the
audited financial statements and notes thereto for the fiscal year ended March
30, 1998. The results for interim periods are not necessarily indicative of the
results for the respective fiscal years.
(2) INVENTORIES
<TABLE>
<CAPTION>
SEPTEMBER 28, MARCH 30,
1998 1998
------------- ---------
<S> <C> <C>
Die bank.................................................... $ 475 $ 694
Work-in-process............................................. 724 5,297
Finished goods.............................................. 731 1,817
------ ------
$1,930 $7,808
====== ======
</TABLE>
Die bank inventory, consisting of silicon wafers and cut and tested die, is
comparable to raw material inventory in other manufacturing industries.
Work-in-process inventory includes work in process as well as the Company's
inventories of multi-die packages (MDPs) and components and sub-systems to be
incorporated into module, board and system products. Finished goods inventory
includes finished module, board and system products as well as MDPs and ASICs
offered for sale to OEM customers.
(3) NOTES PAYABLE
The notes payable to a bank at September 28, 1998, were outstanding under a
$20,000,000 revolving credit facility with a bank, due November 30, 1998.
Interest accrues at the bank's quoted rate (6.3% at September 28, 1998). The
notes payable are guaranteed by Fujitsu. The credit facility and Fujitsu's
guaranty expire on December 31, 1998.
(4) NET INCOME (LOSS) PER COMMON SHARE
Basic earnings (loss) per share is based on the weighted average of all
common shares issued and outstanding, and is calculated by dividing net income
(loss) available to common stockholders by the weighted average shares
outstanding during the period. Diluted earnings per share is calculated by
dividing net income (loss) available to common stockholders by the weighted
average number of common shares used in
6
<PAGE> 7
ROSS TECHNOLOGY, INC.
AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
the basic calculation plus the number of common shares that would be issued
assuming conversion of all potentially dilutive common shares outstanding.
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
----------------------------- -----------------------------
SEPTEMBER 29, SEPTEMBER 28, SEPTEMBER 29, SEPTEMBER 28,
1997 1998 1997 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net income (loss) applicable to
common stockholders............. $(2,907) $ 978 $(8,066) $(9,459)
======= ======= ======= =======
Weighted average shares
outstanding -- Basic............ 23,547 23,477 23,542 23,477
======= ======= ======= =======
Basic income (loss) per share..... $ (.12) $ .04 $ (.34) $ (0.40)
======= ======= ======= =======
Weighted average shares
outstanding -- Diluted.......... 23,547 43,477 23,542 23,477
======= ======= ======= =======
Diluted income (loss) per share... $ (.12) $ .02 $ (.34) $ (0.40)
======= ======= ======= =======
</TABLE>
For the quarter ended September 28, 1998 options totaling 2,361,483 shares
of common stock were excluded from the computation of diluted earnings per share
because they would have been antidilutive for this period. For the quarter ended
September 29, 1997, options totaling 739,468 were excluded from the computation
of diluted earnings per share because they would have been antidilutive for that
period. For the six month period ended September 28, 1998, options totaling
3,033,684 and the conversion of Series B Convertible Preferred Stock to
20,000,000 shares of common stock were excluded from the computation of dilutive
earnings per share because they would have been antidilutive for this period.
For the six month period ended September 29, 1997, options totaling 717,130 were
excluded from the computation of diluted earnings per share because they would
have been antidilutive for that period.
(5) SEVERANCE COST
As previously reported, the Company has commenced an orderly shutdown of
its operations. In conjunction with the Company's orderly shutdown of its
operations and in order to provide certain employees with an incentive to
continue his or her employment with the Company, the Company adopted an Employee
Retention and Severance Plan (the "Retention Plan"). The Company provided
severance packages to all eligible terminated employees as required by its
general severance policy, and substantially all of the executive officers were
retained pursuant to individual retention agreements. Given the Company's
uncertain financial position, retention agreements were provided by the Company
to such executive officers to provide incentives so that the key personnel
necessary to effect the sale of the Company's assets remained with the Company
until such time that their services were no longer required. The total cost of
the Retention Plan and severance packages totals $5.2 million, of which $3.2
million relates to prior contractual obligations of the Company and obligations
of the Company under its general severance policy. At June 29, 1998, these
severance costs met the criteria as stated in Emerging Issues Task Force issue
No. 94-3 and, therefore, these severance costs have been accrued in the first
quarter of Fiscal 1999. These severance costs are not of a normal recurring
nature.
As part of the preparation for the shutdown of the Company's business, on
June 1, 1998, the Company issued notices to its employees under the Federal
Workers Adjustment and Retraining Notification Act (the "WARN Act"). These
notices provided advance notice to all employees of the scheduled termination of
their employment in connection with the shutdown. Approximately 138 employees,
or 70% of the Company's work force (excluding employees at the Company's Design
Center in Israel), were laid off on July 31, 1998, including the members of the
Company's "Viper" development team.
7
<PAGE> 8
ROSS TECHNOLOGY, INC.
AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
(6) GAIN ON SALE OF SUBSIDIARY
On August 10, 1998, the Company sold all of the issued and outstanding
shares of capital stock of ROSS Semiconductors (Israel) Ltd. ("RIL") to Fujitsu
for $2.5 million. In Fiscal 1998, the Company recorded a $1.1 million charge to
write-down its investment in RIL to $0. Accordingly, the sale of RIL resulted in
a gain of $2.5 million.
(7) GAIN ON SALE OF INTELLECTUAL PROPERTY
On July 27, 1998, the Company sold certain intellectual property rights
(the "Acquired IP") to Fujitsu (subject to a license back of certain of those
rights) for $7.6 million. The Acquired IP had a book value of $0. Accordingly,
the sale of the Acquired IP resulted in a gain of $7.6 million.
(8) OTHER
The Company has entered into an Asset Purchase Agreement (the "Asset
Purchase Agreement") to sell its manufacturing, sales and service operations and
certain assets related to the Company's 32-bit hyper-SPARC(TM) business (the
"BridgePoint Sale") to a newly-formed Texas corporation ("Buyer"), of which Joe
D. Jones (currently Vice President of Operations of the Company) is president
and sole stockholder. The Asset Purchase Agreement provides for an aggregate
consideration of $5.66 million, of which $250,000 will be deposited by Buyer
into an escrow account for a holdback amount to cover possible indemnification
claims. Also, the Company will pay $1.72 million to the Buyer at the closing in
consideration for the Buyer's assumption of and undertaking to pay, discharge
and perform certain warranty repair liabilities of the Company.
In furtherance of the Company's previously announced plans to commence an
orderly shutdown of its operations, on July 22, 1998 the Company adopted a Plan
of Complete Liquidation and Dissolution (the "Plan of Liquidation") pursuant to
which the Company will be liquidated by the sale of all or substantially all of
its remaining assets and payment of claims, obligations and expenses owing to
the Company's creditors. The Company does not believe that it will have any
funds or assets available for distribution to either preferred or common
stockholders.
The BridgePoint Sale and the Plan of Liquidation have been approved by
Fujitsu, as holder of a majority of the outstanding shares of the Company's
common stock and all of the outstanding shares of the Company's Series B
Convertible Preferred Stock. The Company has filed a preliminary information
statement with respect to the BridgePoint Sale and the Plan of Liquidation with
the SEC and will mail the information statement to its stockholders following
the SEC's review and clearance of the preliminary information statement. The
BridgePoint Sale will not be effective until at least twenty days after the
mailing of the information statement and following satisfaction or waiver of the
other conditions to that sale. The Plan of Liquidation will not be effective
until at least twenty days after the mailing of the information statement. The
Company intends to proceed with liquidation and dissolution regardless of
whether the BridgePoint Sale is consummated.
The Company estimates total future obligations and commitments associated
with the Company's planned shutdown of its operations, including employee
related costs, at approximately $10.4 million (excluding the Company's
obligations under its revolving credit facility guaranteed by Fujitsu). The
Company has received gross proceeds of $10.1 million from the IP Sale and the
sale of RIL, and will receive approximately $3.9 million of proceeds (net of
payment for warranty liability assumption) and will receive approximately $1.9
million for cost reimbursements if the BridgePoint Sale is consummated.
(9) RECLASSIFICATIONS
Certain reclassifications have been made to conform prior periods data
to the current presentation.
8
<PAGE> 9
ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
CAUTIONARY STATEMENT
This Quarterly Report contains forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995, with respect
to the financial condition, results of operations and business of ROSS
Technology, Inc. and its subsidiary (collectively, unless the context otherwise
requires, "ROSS", the "Company", or the "Registrant"). Such statements are
subject to certain risks and uncertainties that could cause actual results to
differ materially and adversely from those set forth in the forward-looking
statements, including without limitation the availability of financial
resources adequate to the Company's short-, medium- and long-term needs,
general economic conditions, and the other risks and uncertainties described
from time to time in the Company's public announcements and SEC filings,
including without limitation the Company's Current, Quarterly, and Annual
Reports on Forms 8-K, 10-Q, and 10-K, respectively. The Company does not
undertake to update any written or oral forward-looking statement that may be
made from time to time by or on behalf of the Company.
The information contained in this Quarterly Report is not a complete
description of the Company's business or the risks associated with an
investment in the Company. More complete discussions can be found in the
Company's Annual Report on Form 10-K for the fiscal year ended March 30, 1998,
as supplemented by the information contained in the Current Reports on Form 8-K
dated July 30, 1998 and August 11, 1998 and this Quarterly Report.
RESULTS OF OPERATIONS
Net Sales. Net sales in the three month period ended September 28, 1998
(the "second quarter") of the fiscal year ending March 29, 1999 ("Fiscal 1999")
decreased 61.7% to $4.4 million from $11.5 million in the corresponding period
of Fiscal 1998. This reduction in sales reflects the continued decline in demand
for the Company's 32-bit products and the previously reported migration of the
Company's primary customers to 64-bit products sold by the Company's
competitors, primarily Sun. A similar decline in sales is also reflected in the
47.5% decrease in net sales during the first six months of Fiscal 1999 as
compared to the corresponding period in Fiscal 1998. This reduction was
mitigated by a $5.0 million end of life ("EOL") order from Fujitsu. This order
was placed and shipped during the first quarter of Fiscal 1999 in connection
with Company's previously announced EOL program, which provided the Company's
customers the opportunity to place EOL orders until July 31, 1998, with all such
orders to be shipped on or before November 28, 1998.
Gross Profit. Gross profit as a percentage of net sales for the quarter
ended September 29, 1998 decreased to (.1)% as compared to 12.3% of net sales
for the comparable period in Fiscal 1998. This decrease reflected a sharp
decrease in sales without a decrease of equal magnitude in the Company's
manufacturing overhead. In contrast, for the six month period ended September
28, 1998, gross profit as a percentage of net sales increased to 10.1% as
compared to 8.8% for the corresponding period in Fiscal 1999. This increase was
primarily attributable to the Company's ability to ship orders from stock which
allowed the Company to reduce its manufacturing overhead during the first
quarter of Fiscal 1999. This reduction in manufacturing overhead in the first
quarter of Fiscal 1999 coupled with an equal level of such costs in the second
quarter of Fiscal 1999 provided the Company with a slight percentage increase in
gross profit for the first six months of Fiscal 1999 versus the same period of
Fiscal 1998.
Research and Development Expense. Research and development ("R&D") expense
includes costs associated with the definition, design and development of new
products. Net R&D expenses were 17.4% of net sales for the quarter ended
September 28, 1998, compared with (1.3)% of net sales for the comparable period
in Fiscal 1998. Absolute R&D expenses increased $.9 million in the quarter ended
September 28, 1998 from the comparable period in the prior fiscal year. This
increase was primarily attributable to reimbursement by
9
<PAGE> 10
Fujitsu of $4.5 million in expenses in the second quarter of Fiscal 1998
relating to the development of the Company's 64-bit Viper project pursuant to a
development agreement between the Company and Fujitsu (the "Viper Development
Agreement"). No such reimbursements occurred during the second quarter of Fiscal
1999. As previously reported, the Company will not complete development of the
"Viper" project and the Company and Fujitsu have terminated the Viper
Development Agreement. For the same reasons, net R&D expenses were 31.2% of net
sales for the six month period ended September 28, 1998 as compared to 6.0% for
the corresponding period in Fiscal 1998. During the first six months of Fiscal
1998, the Company received $9.0 from Fujitsu for expense reimbursement. No such
payment was received during the first six months of Fiscal 1999.
For the second quarter of Fiscal 1999, gross R&D expense was significantly
lower than the level experienced in the corresponding period of Fiscal 1998
reflecting that on July 31, 1998, the Company laid off approximately 70% of its
domestic work force, including all members of the Company's R&D operations.
Selling, General and Administrative Expense. Selling, general and
administrative ("SG&A") expenses were 88.3% of net sales for the quarter ended
September 28, 1998, compared with 30.8% of net sales for the comparable period
in Fiscal 1998. Absolute SG&A expenses increased $.3 million in the quarter
ended September 28, 1998 from the comparable period in the prior fiscal year.
The increase in SG&A expense is primarily attributable to an increase in legal
and related expenses associated with the Company's planned shutdown of its
operations, particularly expenses related to the Company's obligations under the
federal Workers Adjustment and Retraining Notification Act (the "WARN Act").
For similar reasons, SG&A expenses for the six months ended September 28,
1998 increased to 56.9% of net sales as compared to 30.6% for the comparable
period in Fiscal 1998.
Severance Cost. In conjunction with the Company's orderly shutdown of its
operations and in order to provide certain employees with an incentive to
continue his or her employment with the Company, the Company adopted an Employee
Retention and Severance Plan (the "Retention Plan"). The Company provided
severance packages to all eligible terminated employees as required by its
general severance policy, and substantially all of the executive officers were
retained pursuant to individual retention agreements. Given the Company's
uncertain financial position, retention agreements were provided by the Company
to such executive officers to provide incentives so that the key personnel
necessary to effect the sale of the Company's assets remained with the Company
until such time that their services were no longer required. The total cost of
the Retention Plan and severance packages totals $5.2 million, of which $3.2
million relates to prior contractual obligations of the Company and obligations
of the Company under its general severance policy. At June 29, 1998, these
severance costs met the criteria as stated in Emerging Issues Task Force issue
No. 94-3 and, therefore, these severance costs have been accrued in the first
quarter of Fiscal 1999.
As part of the preparation for the shutdown of the Company's business, on
June 1, 1998, the Company issued notices to its employees under the WARN Act.
These notices provided advance notice to all employees of the scheduled
termination of their employment in connection with the shutdown. Approximately
138 employees, or 70% of the Company's work force (excluding employees at the
Company's Design Center in Israel), were laid off on July 31, 1998, including
the members of the Company's "Viper" development team.
Gain on Sale of Subsidiary. On August 10, 1998, the Company sold all of the
issued and outstanding shares of capital stock of RIL to Fujitsu for $2.5
million. In Fiscal 1998, the Company recorded a $1.1 million charge to
write-down its investment in RIL to $0. Accordingly, the sale of RIL resulted
in a gain of $2.5 million.
Gain on Sale of Intellectual Property. On July 27, 1998, the Company sold
certain intellectual property (the "Acquired IP") to Fujitsu for $7.6 million,
with a royalty-free license back of certain of those rights. The Acquired IP
had a book value of $0. Accordingly, the sale of the Acquired IP resulted in a
gain of $7.6 million.
Net Interest Expense. The Company had net interest expense of $.3 million
for the quarter ended September 28, 1998, versus interest expense of $.9 million
in the quarter ended September 29, 1997, reflecting a lower level of debt during
the first quarter of Fiscal 1999 as compared to the corresponding period in
Fiscal
10
<PAGE> 11
1998. For similar reasons, interest expense decreased to $.6 million for the six
months ended September 28, 1998 as compared to $1.6 million for the comparable
period in Fiscal 1998.
Income Tax Expense. The Company has established a 100% reserve against its
deferred income tax asset and will not record income tax expense or benefit
until such time as the Company achieves profitability. Although it is
anticipated that the Company will not generate any future tax obligations as a
result of any future transactions, it is possible that such tax obligations may
occur.
Future Operating Results. The Company intends to dissolve and liquidate and
pay out the net proceeds of the sale of its remaining assets to satisfy the
Company's obligations to its creditors. The Company does not believe it will
have any funds or assets remaining to make distributions to either preferred or
common stockholders.
LIQUIDITY AND CAPITAL RESOURCES
The Company experienced significant negative cash flows during the fiscal
year ended March 30, 1998. Historically, the Company has been dependent on
Fujitsu for its capital requirements. Fujitsu has provided a guarantee for a
credit facility with DKB for a maximum principal amount of $20 million. The line
of credit and guaranty are scheduled to expire on November 30 and December 31,
1998, respectively. As of November 11, 1998, the Company has borrowed the
maximum $20 million of available credit provided by the existing credit
facility. There is no assurance that DKB will renew the line of credit or that
Fujitsu will agree to extend or renew the guaranty, on their existing terms or
otherwise. In addition, there can be no assurance that the Company will not
experience negative cash flow from operations and the Company may in future be
required to seek additional external sources of financing to fund the shutdown
of its operations, which it does not believe it will be able to obtain from
Fujitsu or any other third party. Although the Company hopes it will have
sufficient funds from the sale of its inventory and assets to fund an orderly
shutdown of its operations, the Company may nevertheless be forced to seek
protection under Federal bankruptcy laws.
On May 18, 1998, the Company was informed by The Nasdaq Stock Market of the
Company's failure to maintain certain listing requirements for the Nasdaq
National Market -- failure to maintain a closing bid price of greater than or
equal to $1.00 per share and failure to maintain a market value of public float
greater than or equal to $5 million. On July 15, 1998, the Company received
another notice from The Nasdaq Stock Market informing the Company that it no
longer met the minimum net tangible assets requirement for continued listing on
the Nasdaq National Market. As a result of the Company's noncompliance with
these rules, the Company's common stock was delisted from the Nasdaq National
Market effective at the close of business on July 31, 1998. The Company's Common
Stock continues to trade on the over-the-counter bulletin board market
maintained by the Nasdaq Stock Market.
The Company's principal source of liquidity as of September 28, 1998
consisted of $7.0 million of cash. The Company has no availability under any
credit facility. As of September 28, 1998, the Company had negative working
capital of $19.1 million, an accumulated deficit of $149.3 million and
stockholders deficit of $18.4 million.
11
<PAGE> 12
ITEM 1. LEGAL PROCEEDINGS
Kris Vorm v. ROSS Technology, Inc., Cause No. 9704693 (District Court
of Travis County, Texas). On April 18, 1997, the above-referenced action was
filed against the Company in the 353rd Judicial District Court of Travis
County, Austin, Texas (the "Vorm Action"). The Vorm Action was brought by Kris
Vorm, a former employee of the Company, alleging that in late May 1996 the
Company, through false and material representations and promises, prevented him
from selling shares of common stock of the Company owned by him. Plaintiff
further contended that the Company misrepresented that it would provide him a
low interest loan to cover his tax liability in connection with his having
purchased his shares. Plaintiff sought compensation in an unspecified amount
which the Company estimates, based upon Plaintiff's allegations, to approximate
$500,000. Plaintiff also sought exemplary damages, as well as attorneys' fees,
costs, and pre-judgment and post-judgment interest. The Company and the
plaintiff have settled the Vorm Action for $190,000. The Company did not admit
to any liability under the Vorm Action.
Hummingbird Communications, Ltd. v. ROSS Technology, Inc., Cause No.
9810439 (District Court of Travis County, Texas). On October 7, 1998, the
above-referenced action was filed against the Company in the 261st Judicial
District Court of Travis County, Austin, Texas (the "Hummingbird Action"). The
Hummingbird Action was brought by Hummingbird Communications, Ltd.
("Hummingbird"), a vendor of computer software to the Company, alleging that the
Company had not paid amounts due to Hummingbird pursuant to an agreement between
Hummingbird and the Company. Hummingbird seeks damages of $750,000, plus $50,000
per year from the inception of the agreement (August 19, 1996), plus reasonable
attorney's fees.
The Company has filed an answer to the complaint and has denied
liability. The Company believes that it has meritorious defenses to the
Hummingbird Action and intends to defend it vigorously. Given the early stage
of the proceedings, the fact that the ultimate outcome will depend upon the
resolution of disputed issues of fact and law and the inherent uncertainties of
litigation such as this, it is not possible at this time to predict the
ultimate outcome of the matter with any degree of certainty, although based on
information presently known to management, the Company does not believe that
the ultimate resolution of this lawsuit will have a material adverse effect
upon the financial condition or results of operation of the Company, although
the result of this lawsuit will not affect the Company's decision to proceed
with an orderly shutdown of its operations.
The Company is involved in routine litigation arising in the ordinary
course of business, and, while the results of the proceedings cannot be
predicted with certainty, the Company believes that the final outcome of such
proceedings will not be material.
ITEM 2. CHANGES IN SECURITIES
NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS
NONE
ITEM 5. OTHER INFORMATION
The BridgePoint Sale and the Plan of Liquidation are still pending,
subject to clearance of stockholder materials by the Securities
and Exchange Commission. Both the BridgePoint Sale and the Plan of
Liquidation have been approved by the Company's majority stockholder.
The Company anticipates that it will consummate the BridgePoint Sale
by the end of 1998, although that transaction remains subject to
certain contingencies, including financing, and accordingly no
assurances can be given. The Company continues to pursue the
previously-announced orderly shutdown of its operations and
anticipates that it will cease all operations by early 1999. The
Company does not believe that it will have any funds or assets
available for distribution to common or preferred stockholders.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit No. Description
----------- -----------
10.1 Termination Agreement dated as of August 31, 1998
between the Company and Fujitsu Limited
10.2 Technology Framework Agreement between the
Company, Fujitsu Limited and BridgePoint
Technical Manufacturing Corporation
27 Financial Data Schedule
(b) Reports on Form 8-K
Two Current Reports on Form 8-K dated July 30, 1998 and August 11,
1998 reporting the delisting of the Company's Common Stock from the Nasdaq
National Market, the agreement to sell the Company's BridgePoint business
unit, the adoption of the Plan of Liquidation and the sale of certain
intellectual property to Fujitsu.
12
<PAGE> 13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ROSS TECHNOLOGY, INC.,
a Delaware corporation
Date: November 12, 1998 /s/ F. S. (KIT) WEBSTER III
----------------------------------------
F. S. (Kit) Webster III
Chief Financial Officer
13
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
10.1 Termination Agreement dated as of August 31, 1998
between the Company and Fujitsu Limited
10.2 Technology Framework Agreement between the
Company, Fujitsu Limited and BridgePoint
Technical Manufacturing Corporation
27 Financial Data Schedule
</TABLE>
<PAGE> 1
EXHIBIT 10.1
TERMINATION AGREEMENT
THIS TERMINATION AGREEMENT (this "Termination Agreement"), dated as of
August 31, 1998, is made by and between ROSS Technology, Inc., a Delaware
corporation ("ROSS"), and Fujitsu Limited, a Japanese corporation ("Fujitsu"
and, together with ROSS, the "Parties").
RECITALS
A. Fujitsu has licensed and provided certain proprietary information to
ROSS under the agreements listed in attached Exhibit A (the "Agreements") and
Exhibit B (the "Surviving Agreements") in order to facilitate ROSS' performance
of design and development services on Fujitsu's behalf and manufacture of
semiconductor products.
B. The Parties now wish to (i) terminate each of the Agreements and
provide for the return by ROSS to Fujitsu of all technology and proprietary
information provided or licensed by Fujitsu to ROSS under the Agreements and
(ii) confirm certain matters pertaining to the Surviving Agreements, on the
terms, and subject to the conditions, set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and the
terms and conditions set forth herein, the Parties hereby agree follows:
1. Termination Date and Terms.
(a) Defined Terms. Capitalized terms used but not otherwise defined in
this Termination Agreement (including its exhibits) shall have the meanings set
forth in the Agreement to which they pertain.
(b) Termination Date. Effective as of July 31, 1998 (the "Termination
Date"), and except for those provisions of the Agreements which are expressly
stated in this Termination Agreement to survive the Termination Date, each of
the Agreements, including any exhibits, attachments, schedules and amendments
thereto, is hereby terminated, and shall be of no further force and effect.
Except as otherwise expressly provided in this Termination Agreement, from and
after the Termination Date, neither Party shall have any further rights,
obligations or liabilities whatsoever under any of the Agreements (or the
related exhibits, attachments, schedules and amendments).
(c) Viper Development Agreement.
(i) Surviving Provisions. Notwithstanding any provisions of the Viper
Development Agreement to the contrary, including, without limitation, Section
13.3, the following sections of the Viper Development Agreement shall survive
termination and shall remain in full force and effect after the Termination
Date:
1
<PAGE> 2
(1) Sections 1, 8.2, 8.4(a) (other than the last sentence), 9,
10.4, 11, 13.4 and 14 (other than Section 14.9) shall remain in full force and
effect in their entirety in accordance with their terms; and
(2) Section 8.1 shall remain in full force and effect, provided
that Section 8.1(d) shall be terminated in its entirety and Section 8.1(a) shall
be amended and restated in its entirety as set forth in attached Appendix I so
as to terminate the stand alone clauses 8.1(a)(i), (ii), (iii) and (iv) (after
the phrase "except as follows" in the 21st line of such section) as such clauses
apply to FUJITSU. For the avoidance of doubt, the Parties intend that, from and
after the Termination Date, Fujitsu shall not be limited, in any respect, in its
ability to commercially exploit its rights under Section 8.1(a) as amended and
restated hereby.
(ii) No Further Development Payments/Obligations. Each Party hereby
agrees that no additional payments of any kind are due by either Party to the
other Party under the Viper Development Agreement, with respect to work
performed through the Termination Date, as a consequence of termination, or
otherwise, including, without limitation, pursuant to Section 6 thereof
(Acceptance and Rejection of Deliverables) or Section 13 thereof (Termination).
Effective as of the Termination Date, Fujitsu hereby releases ROSS from any
further obligation to perform Services under the Viper Development Agreement and
irrevocably waives the late penalties accrued under Section 6.2 thereof through
the Termination Date. Effective as of the Termination Date, ROSS hereby releases
Fujitsu from any further obligation to make payments with respect of Services
and irrevocably waives any amount otherwise due with respect to termination of
the Viper Development Agreement under Section 13 thereof.
(iii) Effect of Termination. For the avoidance of doubt, the Parties
intend that the termination of the Viper Development Agreement be deemed a
termination pursuant to Section 13.1 or Section 13.2 thereof for purposes of the
provisions of Section 13.4 thereof relating to the post-termination rights of
the Parties.
(iv) Further Assurances. Each Party shall, promptly upon request by
the other Party, take such further actions, and execute, acknowledge and deliver
such further assignments, certificates, and other instruments, as either Party
may reasonably request from time to time in order to confirm such other Party's
rights in the New Technology in accordance with Section 8.1(e) of the Viper
Development Agreement.
(d) UPA Sublicense Agreement.
(i) Effect of Termination. Effective upon the Termination Date, all
licenses granted to ROSS pursuant to the UPA Sublicense Agreement shall be
deemed terminated, and ROSS shall have no further right to use the Licensed
Technology or to manufacture, market, sell or sublicense any Licensed Systems,
Licensed Products or Derivative Works. Upon the Termination Date, ROSS shall
immediately discontinue all use of the Licensed Technology.
(ii) Surviving Provisions. Notwithstanding any provisions of the UPA
Sublicense Agreement to the contrary, Sections 1, 3.2, 3.3, 8.5 and 9 through 12
(other than Sections 9.5, 12.3(B) and 12.4) of the UPA Sublicense Agreement
shall survive the termination and shall remain in full force and effect after
the Termination Date in accordance with their terms.
2
<PAGE> 3
(iii) Sublicenses. ROSS represents and warrants that it has not
granted any sublicenses under the UPA Sublicense Agreement.
(e) OBP/Post License Agreement.
(i) Effect of Termination. Effective upon the Termination Date, all
licenses granted to ROSS pursuant to the OBP/Post License Agreement shall be
deemed terminated, and ROSS shall have no further right to use the Licensed
Software and Documentation or to distribute the Derivative Software. Upon the
Termination Date, ROSS shall immediately discontinue all use of the Licensed
Software and Documentation.
(ii) Surviving Provisions. Notwithstanding any provisions of the
OBP/Post License Agreement to the contrary, Sections 1, 5.2, 8.4, 8.6, 9, 10,
11, 12 and 13 (other than Sections 13.2 and 13.11) of the OBP/Post License
Agreement shall survive the termination of the OBP/Post License Agreement and
shall remain in full force and effect after the Termination Date in accordance
with their terms.
(iii) Confirmation of Ownership. As required under Section 3.2 of the
OBP/Post License Agreement, ROSS hereby confirms that it has delivered to
Fujitsu all Error Corrections made by or for ROSS under the OBP/Post Development
Agreement and, as provided in Section 2.1 of the OBP/Post License Agreement,
ROSS hereby confirms that Fujitsu owns all Error Corrections made by or for ROSS
thereunder.
(iv) Subcontractors. ROSS represents and warrants that it has not
retained any subcontractors pursuant to the OBP/Post License Agreement.
(f) VIS Non-Disclosure Agreement. Notwithstanding the provisions of
Section 1(b) of this Termination Agreement, the VIS Non-Disclosure Agreement
shall remain in full force and effect (other than Sections 4 and 9) until all of
the obligations of confidentiality set forth thereunder expire or are terminated
in accordance with its terms.
(g) CS70 License Agreement.
(i) Effect of Termination. Upon the Termination Date, ROSS shall
immediately discontinue all use of CS70 SRAM Cell Data and shall have no further
right to use, copy or reproduce CS70 SRAM Cell or CS70 SRAM Cell Data.
(ii) Surviving Provisions. Notwithstanding any provisions of the CS70
License Agreement to the contrary, Sections 1, 3, 8.6 (except replacing "THE
FOREGOING WARRANTIES OF FUJITSU ARE IN LIEU OF ALL OTHER WARRANTIES" with
"FUJITSU MAKES NO WARRANTIES"), 9, 10 and 14 through 24 of the CS70 License
Agreement shall survive the termination of the CS70 License Agreement and shall
remain in full force and effect after the Termination Date in accordance with
their terms.
3
<PAGE> 4
(iii) Sublicenses. ROSS represents and warrants that it has not
granted any sublicenses under the CS70 License Agreement.
(h) Solaris License Agreement.
(i) Effect of Termination. Upon the Termination Date, ROSS shall
immediately discontinue all use of Software Products and Secondary Works and
shall have no further right to use, copy or reproduce the Software Products or
Secondary Works.
(ii) Surviving Provisions. Notwithstanding any provisions of the
Solaris License Agreement to the contrary, Sections 1, 3, 6 (other than Section
6.4), 8, 9 and 12 through 21 of the Solaris License Agreement shall survive the
termination of the Solaris License Agreement and shall remain in full force and
effect after the Termination Date in accordance with their terms.
(iii) Subcontractors. ROSS represents and warrants that it has not
retained any subcontractors pursuant to the Solaris License Agreement.
(i) RDB-II License Agreement.
(i) Effect of Termination. Upon the Termination Date, ROSS shall
immediately discontinue its use of the Database Trace Information and shall have
no further right to use the Database Trace Information.
(ii) Surviving Provisions. Notwithstanding any provisions of the
RDB-II License Agreement to the contrary, Sections 1, 4, 5, 7 and 8 of the
RDB-II License Agreement shall survive the termination of the RDB-II License
Agreement and shall remain in full force and effect after the Termination Date
in accordance with their terms.
(iii) Limitation of Liability. Neither Party shall be liable for any
indirect, special, incidental or consequential damages, including, but not
limited to, loss of profit or loss of use, with respect to any claims arising
out of or in connection with the RDB-II License Agreement, even if such Party
has been advised of the possibility of such damages.
(j) Letter Agreement.
(i) Effect of Termination. Upon the Termination Date, (A) all
services and upgrade discounts provided to ROSS under Section (1) of the Letter
Agreement shall terminate, and (B) ROSS shall immediately discontinue all use of
any (1) Successive Versions, (2) Early Access Versions and (3) Quick Source
Products of Solaris (collectively, the "Letter Agreement Deliverables") provided
under Section (2) of the Letter Agreement and shall have no further right to
use, copy or reproduce such Letter Agreement Deliverables.
(ii) Surviving Provisions. Notwithstanding any provisions of the
Letter Agreement or the SunSoft Support Agreement to the contrary, Sections 1,
10 (other than the words "OTHER THAN AS SPECIFICALLY SET FORTH IN SECTION 9
ABOVE,"), 11, 12.1 through 12.3, 12.5, 13, 14.1 through 14.3, 14.5 through 14.7,
14.8 (solely with respect to the first sentence thereof), 14.9 and 14.10 of the
SunSoft Support Agreement shall survive the termination of the Letter Agreement
and shall remain in full force and effect with respect to ROSS and Fujitsu after
the Termination Date in accordance with their terms.
4
<PAGE> 5
2. Delivery.
(a) Delivery. Promptly, and in any event within ten (10) days, after the
Termination Date ROSS shall deliver to Fujitsu all originals and copies of (A)
all licensed technology and other proprietary and technical information provided
or made available by Fujitsu to ROSS under any of the Agreements and Surviving
Agreements, including, without limitation, each of the items listed on attached
Exhibit C, and (B) all tangible materials embodying other "Confidential
Information" (as such term is defined in each of the Agreements and the
Surviving Agreements) provided by Fujitsu to ROSS under any of the Agreements
and Surviving Agreements in ROSS' possession or control (or in the possession or
control of its sublicensees, contractors or subcontractors, if any), in each
case F.O.B. ROSS' facility in Austin, Texas. At Fujitsu's request, ROSS shall
destroy or disable such tangible materials or electronically reproducible copies
of all items to be delivered by ROSS to Fujitsu hereunder (including, without
limitation, any such copies contained in derivative works) and all other
electronic documents and files containing all or any portion thereof.
(b) Certification. Promptly after the delivery and/or destruction of all
tangible materials, hard-copy and electronically reproducible copies of the
materials to be delivered to Fujitsu by ROSS pursuant to Section 2(a) of this
Termination Agreement, ROSS shall forward to Fujitsu a certificate (in form and
substance reasonably satisfactory to Fujitsu), signed by a duly authorized
officer of ROSS, certifying that all items required to be delivered or destroyed
by ROSS hereunder have been so delivered or destroyed. ROSS also shall forward
to Fujitsu the certificates which it has received from its sublicensees and
subcontractors, if any.
3. Surviving Agreements.
(a) Assignment. ROSS and Fujitsu hereby agree that each of the Surviving
Agreements shall be designated as "Assumed Contracts" under the Asset Purchase
Agreement (the "Asset Purchase Agreement"), dated as of July 23, 1998, between
ROSS and BridgePoint Technical Manufacturing Corporation, a Texas corporation
("BridgePoint"), and all of ROSS' rights and obligations under the Surviving
Agreements shall be assumed by BridgePoint pursuant to the Assumption Agreement
(as defined in the Asset Purchase Agreement), a fully executed copy of which
shall be delivered by ROSS to Fujitsu promptly after BridgePoint's execution
thereof.
(b) ROSS' Warranties. ROSS represents and warrants that (i) with the
exception of the Design Agreement, no sublicenses have been granted by ROSS
under any of the Surviving Agreements and (ii) except as set forth in the Asset
Purchase Agreement, ROSS has not received written notice from any third party
alleging the infringement, by technical information provided by Fujitsu to ROSS
under any of the Surviving Agreements, of any intellectual property rights of a
third party.
(c) Return of Confidential Information. For the avoidance of doubt,
notwithstanding the survival of the Surviving Agreements pursuant to this
Section 3, ROSS agrees that, upon the
5
<PAGE> 6
closing under the Asset Purchase Agreement and, in any event, no later than
October 15, 1998, it shall either return to Fujitsu or destroy all originals and
copies of any licensed technology and other proprietary and technical
information as well as all tangible materials embodying "Confidential
Information" (as such term is defined in each of the Surviving Agreements)
provided by Fujitsu to ROSS under any of the Surviving Agreements in ROSS'
possession or control, in accordance with Section 2(a) hereof. Upon the closing
under the Asset Purchase Agreement and, in any event, no later than October 15,
1998, ROSS shall forward to Fujitsu a certificate in the form and manner
required under Section 2(b) hereof certifying that all such items have been so
delivered or destroyed as provided herein.
(d) Fujitsu Technical Information. ROSS represents and warrants that it
has not provided PICCO with any materials embodying the Fujitsu Technical
Information, as such term is defined in the Design Agreement, including the
Fujitsu Technical Information expressly described in Exhibit C.
(e) Confirmation of Joint Ownership. ROSS hereby confirms the joint
ownership rights of Fujitsu in any modifications to circuits adopted in the
MB86751 (125 MHz SSRAM) and the Resulting Technical Information, as such terms
are defined in the Design Agreement and as such rights are more particularly
described in Section 2 of the Design Agreement.
4. Warranties.
(a) ROSS' Warranties. ROSS represents and warrants that (a) it has the
full corporate power and authority to enter into this Termination Agreement and
to perform its obligations hereunder and under the respective surviving
provisions of each of the Agreements; and (b) this Termination Agreement has
been duly executed and delivered by ROSS and constitutes a legally valid and
binding obligation of ROSS, enforceable against ROSS in accordance with its
terms, except to the extent that enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
rights generally and subject to general principles of equity (regardless of
whether such enforcement is considered in a proceeding at law or at equity).
ROSS shall not settle any claim, suit, proceeding or action arising out of or
relating to any breach (or any claim that, if true, would be a breach) of the
foregoing warranties without the prior written consent of Fujitsu, which shall
not be unreasonably withheld.
(b) Fujitsu's Warranties. Fujitsu represents and warrants that (a) it has
the full corporate power and authority to enter into this Termination Agreement
and to perform its obligations hereunder, and (b) this Termination Agreement
constitutes a legally valid and binding obligation of Fujitsu, enforceable
against Fujitsu in accordance with its terms, except to the extent that
enforceability may be limited by applicable bankruptcy, insolvency or similar
laws affecting the enforcement of creditors' rights generally and subject to
general principles of equity (regardless of whether such enforcement is
considered in a proceeding at law or at equity).
(c) NO OTHER WARRANTIES. EXCEPT AS PROVIDED IN THIS SECTION 4 OR OTHERWISE
EXPRESSLY STATED IN THIS TERMINATION AGREEMENT, NEITHER PARTY IS MAKING ANY
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT
LIMITATION, ANY WARRANTY OF
6
<PAGE> 7
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. NEITHER PARTY SHALL BE
LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES,
INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFIT OR LOSS OF USE, WITH RESPECT TO
ANY CLAIMS ARISING OUT OF OR IN CONNECTION WITH THIS TERMINATION AGREEMENT, EVEN
IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
5. LIMITATION OF LIABILITY.
NEITHER PARTY SHALL BE LIABLE FOR DAMAGES OF ANY NATURE WHATSOEVER, WHETHER
DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL, INCLUDING BUT NOT
LIMITED TO LOSS OF PROFIT OR LOSS OF USE, DUE TO THE EXPIRATION OR TERMINATION
OF ANY AGREEMENT PURSUANT TO THIS TERMINATION AGREEMENT, EVEN IF SUCH PARTY HAS
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EACH PARTY WAIVES AND RELEASES
THE OTHER FROM ANY CLAIM TO COMPENSATION OR INDEMNITY FOR TERMINATION OF THE
BUSINESS RELATIONSHIP EMBODIED IN THE AGREEMENTS.
6. Further Assurances.
Each Party shall, promptly upon request by the other Party, take such
further actions, and execute, acknowledge and deliver such further assignments,
certificates, and other instruments, as the other Party may reasonably request
from time to time in order to effectuate the purposes of this Termination
Agreement.
7. Confidentiality.
(a) Confidential Information. All discussions relating to this Termination
Agreement are confidential information and are to be disclosed only to employees
of a Party who have a need to know; provided, however, that "confidential
information" shall not include any information which (i) at the time of
disclosure, is available to the general public; or (ii) at a later date, becomes
available to the general public through no fault of the receiving Party and then
only after such later date; or (iii) the receiving Party can demonstrate was
known to it prior to disclosure to it by the disclosing Party. Neither Party
will disclose to third parties the other Party's confidential information,
except to the extent specified in the prior written consent of the other Party
or necessary to comply with applicable law, the order of any court or the order
or regulations of any governmental agency; provided that such Party will
promptly inform the other Party of such obligation to disclose and cooperate
with the other Party in minimizing the disclosure, including seeking a
protective order.
(b) Public Announcements. The Parties shall consult with each other
regarding the wording and substance of any and all press releases, announcements
or other public statements with respect to the transactions contemplated hereby.
The Parties further agree to use good faith to comply with reasonable requests
of the other Party relating to any such press release, announcement or public
statement.
7
<PAGE> 8
8. Governing Law.
This Termination Agreement is to be construed in accordance with and
governed by the internal laws of the State of California (as permitted by
Section 1646.5 of the California Civil Code or any similar successor provision)
without giving effect to any choice of law rule that would cause the application
of the laws of any jurisdiction other than the internal laws of the State of
California to the rights and duties of the Parties.
9. Successors and Assigns.
This Termination Agreement shall be binding upon and inure to the benefit
of each of the Parties and their respective successors and assigns; provided,
however, that neither Party may assign its rights and obligations hereunder
without the prior written consent of the other Party.
10. Entire Agreement.
This Termination Agreement, together with those provisions of the
Agreements which expressly survive the Termination Date in accordance with the
terms of this Termination Agreement, constitutes and contains the entire
agreement between the Parties and supersedes all prior agreements, negotiations,
correspondence, understandings and communications between the Parties, whether
written or oral, respecting the subject matter hereof.
11. Amendments and Waivers.
This Termination Agreement may be amended only by a written agreement
signed by each of the Parties. No failure to exercise and no delay in
exercising, on the part of any Party, any right, remedy or power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, power and privileges herein provided are
cumulative and not exclusive of any rights, remedies, power and privileges
provided by law.
12. Construction.
This Termination Agreement is the result of negotiations between and has
been reviewed by each of the Parties and their respective counsel; accordingly,
this Termination Agreement shall be deemed to be the product of the Parties
hereto, and no ambiguity shall be construed in favor of or against either of the
Parties. Each Party agrees that it intends the literal words of this Termination
Agreement and that no parole evidence shall be necessary or appropriate to
establish the Parties' actual intentions.
13. Counterparts.
This Termination Agreement may be executed in any number of counterparts,
and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument.
8
<PAGE> 9
14. Arbitration.
Any dispute, controversy or claim arising out of or relating to this
Termination Agreement or any of the Agreements or the subject matter hereof or
thereof, or the interpretation, enforceability, validity, performance, breach or
termination hereof or thereof, including, without limitation, this arbitration
clause, shall be solely and finally settled by arbitration in Los Angeles,
California in accordance with the commercial arbitration rules of the American
Arbitration Association, as modified by the provisions of this Section 14. Each
Party waives any rights to bring any such dispute, controversy or claim in any
other forum or proceeding, including, without limitation, the International
Trade Commission of the United States or any other administrative or judicial
forum. The arbitration shall be conducted in accordance with such rules by three
arbitrators selected by the Parties (if the Parties are able to agree within
thirty (30) days) and otherwise selected in accordance with such rules. Each of
the arbitrators appointed shall have at least five (5) years' experience in the
field that is the principal subject matter of the dispute. After soliciting the
views of the Parties, the arbitrators shall order such discovery as they may
deem reasonable for a full and fair understanding of the facts and issues raised
in the arbitration. The arbitration, including the proceeding, pleadings and
evidence in connection therewith, shall be maintained as confidential. An award
rendered in connection with the arbitration shall be final and binding on the
Parties, and any judgment upon such an award may be entered in any court of
competent jurisdiction. The award shall be in writing and shall provide written
reasons in detail or the award unless the Parties agree otherwise. The award
shall also provide for the fees and expenses of the arbitrators and for the
reasonable attorneys' fees and expenses of the prevailing Party, as determined
by the arbitrators, all to be borne by the non-prevailing Party.
15. No Third Party Benefits.
Nothing in this Termination Agreement shall be construed to confer on any
person or entity not a party hereto any right, remedy or claim hereunder.
9
<PAGE> 10
IN WITNESS WHEREOF, each Party has caused its duly authorized
representative to execute this Termination Agreement as of the date first
written above.
FUJITSU LIMITED
By: /s/ YOSHIRO YOSHIOKA
----------------------------------------
Name: Yoshiro Yoshioka
--------------------------------------
Title: Senior Vice President
--------------------------------------
ROSS TECHNOLOGY, INC.
By: /s/ JACK W. SIMPSON 8/31/98
----------------------------------------
Name: Jack W. Simpson
--------------------------------------
Title: President and Chief Executive Officer
--------------------------------------
10
<PAGE> 11
EXHIBIT A
List of Agreements
1. Development Agreement dated June 25, 1997 between Fujitsu and ROSS (the
"Viper Development Agreement")
2. UPA Sublicense Agreement dated July 30, 1997 between Fujitsu and ROSS (the
"UPA Sublicense Agreement")
3. Software License Agreement dated February 19, 1997 between Fujitsu and ROSS
(the "OBP/Post License Agreement")
4. Non-Disclosure Agreement dated December 5, 1997 between ROSS and Fujitsu
(the "VIS Non-Disclosure Agreement")
5. CS70 SRAM Cell License Agreement dated as of April 10, 1997 between Fujitsu
and ROSS (the "CS70 Agreement")
6. Software License Agreement dated as of April 7, 1995 between ROSS and
Fujitsu (the "Solaris License Agreement")
7. License Agreement dated July 30, 1997 between ROSS and Fujitsu (the "RDB-II
License Agreement")
8. Letter Agreement dated March 17, 1995 between Fujitsu and ROSS (the "Letter
Agreement") attaching the SunSoft, Inc. Master Support Agreement executed
December 9, 1993 between SunSoft, Inc. and Fujitsu (the "SunSoft Support
Agreement")
A-1
<PAGE> 12
EXHIBIT B
List of Surviving Agreements
1. Non-Disclosure Agreement executed July 1, 1993 between Fujitsu and ROSS
2. Contractor Design Agreement dated July 15, 1995 between Puyallup Integrated
Circuit Company, Inc., ROSS and Fujitsu (the "Design Agreement")
3. CM50A+ SRAM Cell License Agreement dated as of September 30, 1996 between
Fujitsu and ROSS
B-1
<PAGE> 13
EXHIBIT C
Fujitsu Technology and Other Proprietary and Technical Information
I. VIPER DEVELOPMENT AGREEMENT
Attached.
C-1
<PAGE> 14
Viper Development Agreement
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
date Doc. No. Title Tech. Rev. Attn.
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
4/28/97 CL115123 PROCESS PARAMETER for CS70(for VIPER)(Revision 0.1) CS70(for VIPER) 0.1 T. Smith
- ----------------------------------------------------------------------------------------------------------------------------------
9/24/97 CL115122 MASK DESIGN RULE for CS70(for VIPER)(Revision 1.0) CS70(for VIPER) 1.0 T. Smith
- ----------------------------------------------------------------------------------------------------------------------------------
9/24/97 CL115123-1 PROCESS PARAMETER for CS70(for VIPER)(Revision 1.0) CS70(for VIPER) 1.0 T. Smith
- ----------------------------------------------------------------------------------------------------------------------------------
10/6/97 CL115122-1 MASK DESIGN RULE for CS70(for VIPER)(Revision 1.1) CS70(for VIPER) 1.1 T. Smith
- ----------------------------------------------------------------------------------------------------------------------------------
10/6/97 CL115123-2 PROCESS PARAMETER for CS70(for VIPER)(Revision 1.1) CS70(for VIPER) 1.1 T. Smith
- ----------------------------------------------------------------------------------------------------------------------------------
10/6/97 CL115125-1 PERMITTED CURRENT for CS70(for VIPER)(Revision 1.1) CS70(for VIPER) 1.1 T. Smith
- ----------------------------------------------------------------------------------------------------------------------------------
10/6/97 CL115142 MASK DESIGN RULE(for FUSE) for CS70(for VIPER)(Revision 1.0) CS70(for VIPER) 1.0 T. Smith
- ----------------------------------------------------------------------------------------------------------------------------------
12/26/97 CL100201 MASK DESIGN RULE for CS75(Revision 0.1) CS75 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
12/26/97 CL100203 PERMITTED CURRENT for CS75(Revision 0.1) CS75 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
12/26/97 CL100202-1 PROCESS PARAMETER for CS75(Revision 0.2) CS75 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 15
I. UPA SUBLICENSE AGREEMENT
(a) UPA Architecture Spec (Rev 2.0 + alpha (timing, update))
(b) UPA Mechanical Spec (STP5110A Module Data Sheet (7/96))
(c) UPA Thermal Guideline (STP5110A Module Data Sheet (7/96))
(d) UPA Electrical Spec (Part of STP5110A Module Data Sheet (7/96))
(e) UPA SPICE models
- UDB
- UltraSparc-I
- RIC
- U2S
- USC
- XB1
(f) UPA Simulation Information (UPA transaction traces)
(g) UPA Behavioral Models
(g-1) UPA Master/Slave (UPA64M)
(g-2) UPA Slave (UPA64S)
(g-3) System Controller (SC)
(g-4) Partial CPU (UPA128M): provided as Esluster
(g-5) UPA Bus Arbiter
(g-6) Program Language Interface
(h) UPA Monitor(s) (provided as part of g-1.2.3.4)
(i) Sun4U (System Spec)
(j) RTL interconnect (for connecting G)
(k) UltraSPARC User's Manual
C-2
<PAGE> 16
(l) US-11 Extension (provided as UltraSPARC-11 Data Sheet (STP1031) and
some UltraSPARC-1 Data Sheets)
(m) All other materials relating to Licensed Technology in the possession
or control of ROSS and for any ROSS subcontractor(s), and all copies
thereof (in whatever form)
C-3
<PAGE> 17
III. OBP/POST LICENSE AGREEMENT
(a) Licensed Software
OBP 3.1.3 for Ultra AX (Photon)
OBP 3.1.5 for Ultra AX (Photon)
OBP 3.1.9 for Ultra AX (Photon)
OBP 3.5 for UltraSPARC-I (Neutron)
OBP 3.7 for UltraSPARC-I Creater 3D (Electron)
OBP 3.7 for UltraSPARC-II (Pulsar)
OBP 3.10.3 for Ultra AXi (Panther)
OBP 3.10.4 for Ultra AXi (Panther)
OBP 3.11 for Ultra1, Ultra1 3D, Ultra2
POST 1.7 for Ultra AXi (Panther)
POST 1.8 for Ultra AXI
POST 2.3 for Ultra AX (Photon)
POST 2.3 for UltraSPARC-II (Pulsar)
POST 2.4 for Ultra AX (Photon)
POST 2.5 for Ultra AX (Photon)
POST 3.10.6 for UltraSPARC-I (Neutron)
POST 3.11.4 for UltraSPARC-I Creater 3D (Electron)
POST sb3.2.1 for UltraSPARC-II (Pulsar)
POST sb3.3.7 for Ultra2
Documentation
OBP Build Procedures
Training Materials
(b) All other materials relating to Licensed Software and Documentation,
and all copies thereof (in whatever form)
C-4
<PAGE> 18
IV. VIS NON-DISCLOSURE AGREEMENT
(a) Delivered Materials
Paper Documents
(1) VIS Hardware Developer's Kit Deliverables: the list of the
Deliverables
(2) VIS Instruction Set User's Manual
(3) VIS2.0 Interface Specification (V1.2)
(4) VIS2.0 C Reference Specification (V1.2)
Tape: electronic files
(1) DOC/ VIS 2.0 Documents
(2) include/ include files
(3) scripts/ scripts to run test programs
(4) test_src/ 1 C test program for each instruction
(5) test_bin/ executables for each test program
(6) test_bin_user/ executables for user input test program
(7) test_input input test vectors
(8) test_output output for each test vector
(9) vis_c_ref/ VIS 2.0 Reference Implementation
(10) sample/ sample VIS2.0 pseudo code
(b) All materials relating to the Delivered Materials, and all copies
thereof (in whatever form).
C-5
<PAGE> 19
V. CS70 SRAM CELL LICENSE AGREEMENT
Attached.
C-6
<PAGE> 20
<TABLE>
<CAPTION>
CS70 SRAM Cell License Agreement
- ------------------------------------------------------------------------------------------------------------------------------
date Doc. No. Title Tech. Rev. Attn.
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
2/2/98 Erdlme313.cdl (netlist of SRAM Cell) Viper
- ------------------------------------------------------------------------------------------------------------------------------
2/2/98 Erdlme13.gds (GDS data of SRAM Cell) Viper P. Jewett
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 21
VI. SOLARIS LICENSE AGREEMENT
(a)
(1) SOFTWARE PRODUCT
<TABLE>
<CAPTION>
NAME OF PRODUCT VERSION RELEASE
-----------------------------------------------------------
<S> <C>
SOLARIS 2.4, 2.5, 2.5.1, 2.6
SOLARIS 1.1.1 (Version B), 1.1.2
OPENBOOT 2
</TABLE>
(2) SOFTWARE PRODUCT
<TABLE>
<CAPTION>
NAME OF PRODUCT VERSION RELEASE
-----------------------------------------------------------
<S> <C>
Early Access Version and
Quick Source Product for 2.X
</TABLE>
(b) All materials downloaded from Access1 Database Server
(c) Documentation (manuals in the form of CD-ROM)
(d) Secondary Works
(e) Error Corrections
(f) All materials relating to the Software Products, Documentation,
Secondary Works, and Error Corrections in the possession or control of
ROSS and/or any ROSS subcontractor(s) and all copies thereof (in
whatever form).
C-7
<PAGE> 22
VII. RDB-II LICENSE AGREEMENT
(a) memory map information of RDB-II (database program) address space
identified as:
"rdbmap.134".
(b) RDB-II program address traces under user-mode in "PC" format
identified as:
"kt.970402.pc.u.cs".
(c) RDB-II program address traces under supervisor-mode in "PC" format
identified as:
"kt.970408.pc.s.cs".
(d) RDB-II program address traces in mixed user-mode and supervisor mode
in "Data" format identified as:
"kt.970418.u_s.d.sv".
(e) RDB-II program or UNIX load modules those correspond to the address
traces b) - d) identified as the following:
"rdb2base2.970402.pc.u.cs":
(corresponds to kt.970402.pc.u.cs)
"unix.970408.kt":
(corresponds to kt.970408.pc.s.cs)
"rdb2base3.0402.rRjspbBo.BcmIOProc"
(corresponds to kt.970418.u_s.d.sv)
"unix.0418.kt.data.nocab"
(corresponds to kt.970418.u_s.d.sv)
(f) The OS libraries used by RDB-II identified as the following:
"libc.so"
"libthread.so"
"libkasyncio.so"
(g) Brief description on the format of Instruction trace data identified
as "Instruction Trace Data".
(h) All materials relating to (a) through (g) above, and all copies
thereof (in whatever form)
C-8
<PAGE> 23
VIII. LETTER AGREEMENT
(a)
(1) SOFTWARE PRODUCT
<TABLE>
<CAPTION>
NAME OF PRODUCT VERSION RELEASE
------------------------------------------------------
<S> <C>
SOLARIS 2.4, 2.5, 2.5.1, 2.6
SOLARIS 1.1.1 (Version B), 1.1.2
OPENBOOT 2
</TABLE>
(2) SOFTWARE PRODUCT
<TABLE>
<CAPTION>
NAME OF PRODUCT VERSION RELEASE
------------------------------------------------------
<S> <C>
Early Access Version and
Quick Source Product for 2.X
</TABLE>
(b) All materials downloaded from Access1 Database Server
(c) Documentation (manuals in the form of CD-ROM)
(d) Secondary Works
(e) Error Corrections
(f) All materials relating to the Software Products, Documentation,
Secondary Works, and Error Corrections in the possession or control of
ROSS and/or any ROSS subcontractor(s) and all copies thereof (in
whatever form).
C-9
<PAGE> 24
IX. COLORADO NON-DISCLOSURE AGREEMENT
Attached.
C-10
<PAGE> 25
Colorado Non-Disclosure Agreement
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Date Doc. No. Title Tech. Rev. Attn.
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5/28/93 CL100017-10 SPICE MOSFET MODEL PARAMETER CS50 4.0e
- ----------------------------------------------------------------------------------------------------------------------
3/11/93 CL100018-5 MASK DESIGN RULE CS50 5.8
- ----------------------------------------------------------------------------------------------------------------------
12/17/93 CL100018-9 MASK DESIGN RULE for CS50 version (Revision 6.1) CS50 6.1 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
5/17/93 CL100021-6 LEVEL CODE TABLE CS50 4.3
- ----------------------------------------------------------------------------------------------------------------------
12/14/93 CL100021-8 LEVEL CODE TABLE for CS50/CS52 version (Revision 4.5) CS50/CS52 4.5
- ----------------------------------------------------------------------------------------------------------------------
5/28/93 CL100024-2 PROCESS PARAMETER CS50 2.0
- ----------------------------------------------------------------------------------------------------------------------
3/11/93 CL100025-1 PERMITTED CURRENT CS50 2.3
- ----------------------------------------------------------------------------------------------------------------------
10/25/93 CL100025-2 PERMITTED CURRENT CS50 3.0
- ----------------------------------------------------------------------------------------------------------------------
5/17/93 CL100027-1 ROUTING LAYER CAPACITANCE (detailed information) CS50 2.0
- ----------------------------------------------------------------------------------------------------------------------
3/30/93 CL100029-1 MASK DESIGN RULE (for FUSE) CS50 1.1
- ----------------------------------------------------------------------------------------------------------------------
10/25/93 CL100029-2 MASK DESIGN RULE (for FUSE) CS50 1.2
- ----------------------------------------------------------------------------------------------------------------------
5/18/93 CL100030 MASK DATA RELEASE FORM CS50 0.1
- ----------------------------------------------------------------------------------------------------------------------
5/28/93 CL100033 FTDL-E User's Manual for Fujitsu CMOS COT 1.0
- ----------------------------------------------------------------------------------------------------------------------
11/1/93 CL100037-2 Generation Method of Dummy Metal-1 pattern by DRACULA CS50 3.20
- ----------------------------------------------------------------------------------------------------------------------
9/28/93 CL100048-3 SPICE MOSFET MODEL PARAMETER for CMOS 0.35 (population mean)
process (Revision 1.10) 1.10 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
3/10/94 CL100048-6 SPICE MOSFET MODEL PARAMETER for CS60 (0.35 population mean)
process (Revision 2.01) PRELMINARY CS60 2.01 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
6/19/94 CL100048-7 SPICE MOSFET MODEL PARAMETER for 0.35 (population mean) process
(Revision 4.10) 4.10 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
3/30/93 CL100055 DRACULA DRC RULE FILE CS50 3.01
- ----------------------------------------------------------------------------------------------------------------------
3/30/93 CL100056 Process Control Monitor CS50 1.0
- ----------------------------------------------------------------------------------------------------------------------
2/15/95 CL100060-4 MASK DESIGN RULE for CS60 version (Revision 2.2) CS60 2.2 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
4/20/95 CL100060-5 MASK DESIGN RULE for CS60 (Revision 2.3) CS60 2.3 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
8/10/94 CL100061-3 PROCESS PARAMETER for CS60 (Revision 3.0) CS60 3.0 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
12/14/94 CL100061-4 PROCESS PARAMETER for CS60 (Revision 3.1) CS60 3.1 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
5/28/93 CL100064-1 P.C.M. Measurement Condition CS50 1.1
- ----------------------------------------------------------------------------------------------------------------------
10/5/93 CL100073 SCRIBE STRUCTURE CS50 1.0
- ----------------------------------------------------------------------------------------------------------------------
12/1/93 CL100077 Hot Carrier Condition under AC Stressing CS50 1.0
- ----------------------------------------------------------------------------------------------------------------------
12/1/93 CL100078 Hot Carrier Condition under AC Stressing for CS50/
CS52 version (Revision 1.0) CS50/CS52 1.0 M. Alsup
- ----------------------------------------------------------------------------------------------------------------------
12/21/93 CL100079 SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean)
process (Revision 0.3) CS55 0.3 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
8/22/94 CL100079-1 SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean)
process (Revision 0.3a) CS55 0.3a T. Smith
- ----------------------------------------------------------------------------------------------------------------------
12/1/94 CL100079-2 SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean)
process (Revision 0.5) CS55 0.5 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
2/15/94 CL100081 MASK DESIGN RULE for CS55 version (Revision 1.0) CS55 1.0 P. Jewett
- ----------------------------------------------------------------------------------------------------------------------
2/15/94 CL100082-1 PROCESS PARAMETER for CS55 version (Revision 1.1) CS55 1.1
- ----------------------------------------------------------------------------------------------------------------------
3/1/93 CL100083 Hot Carrier Condition under AC Stressing for CS55
version (Revision 1.0) CS55 1.0 M. Alsup
- ----------------------------------------------------------------------------------------------------------------------
3/1/94 CL100083 Hot Carrier Condition under AC stressing for CS55
version (Revision 1.0) CS55 1.0 M. Alsup
- ----------------------------------------------------------------------------------------------------------------------
7/21/95 CL100089-2 MASK DESIGN RULE (for FUSE) for CS60 version
(Revision 2.1) CS60 2.1 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
12/14/94 CL100089-3 MASK DESIGN RULE (for FUSE) for CS60 version
(Revision 3.0) CS60 3.0 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
7/21/95 CL100092 FUSE CELL PLACEMENT RULE for CS60 version
(Revision 1.0) CS60 1.0 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
12/14/94 CL100093 MASK DESIGN RULE for CS60ALE version (Revision 0.1) CS60ALE 0.1 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
6/26/94 CL100093-3 MASK DESIGN RULE for CS60ALE version (Revision 1.0) CS60ALE 1.0 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
9/14/95 CL100093-5 MASK DESIGN RULE for CS60ALE version (Revision 1.2) CS60ALE 1.2 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
5/22/96 CL100093-6 MASK DESIGN RULE for CS60ALE version (Revision 1.3) CS60ALE 1.3 P. Jewett
- ----------------------------------------------------------------------------------------------------------------------
6/26/94 CL100101-1 PROCESS PARAMETER for CS60ALE (Revision 0.2) CS60ALE 0.2 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
10/11/95 CL100101-2 PROCESS PARAMETER for CS60ALE (Revision 0.3) CS60ALE 0.3 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
5/22/96 CL100101-3 PROCESS PARAMETER for CS60ALE (Revision 1.0) CS60ALE 1.0
- ----------------------------------------------------------------------------------------------------------------------
10/11/95 CL100102-1 MASK DESIGN RULE (for FUSE) for CS60ALE version
(Revision 1.0) CS60ALE 1.0 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
6/26/94 CL100103-1 LEVEL CODE TABLE for CS60ALE (Revision 0.2) CS60ALE 0.2 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
9/28/95 CL100103-3 LEVEL CADE TABLE for CS60ALE (Revision 2.0) CS60ALE 2.0 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
5/22/96 CL100103-4 LEVEL CODE TABLE for CS60ALE (Revision 3.0) CS60ALE 3.0
- ----------------------------------------------------------------------------------------------------------------------
6/26/94 CL100104 PERMITTED CIRRENT for CS60ALE (Revision 0.1) CS60ALE 0.1 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
10/11/95 CL100104-1 PERMITTED CIRRENT for CS60ALE (Revision 0.2) CS60ALE 0.2 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
5/22/96 CL100104-2 PERMITTED CIRRENT for CS60ALE (Revision 1.0) CS60ALE 1.0
- ----------------------------------------------------------------------------------------------------------------------
4/20/95 CL100106 ESD/Latch Up Guide Line for CS60 (Revision 0.1)
Preliminary CS60 0.1 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
4/20/95 CL100107 Hot Carrier Degradation Simulation Method for CS60
(Revision 0.5) Preliminary CS60 0.5 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
4/28/95 CL100107-1 Hot Carrier Degradation Simulation Method for CS60
(Revision 0.6) Preliminary CS60 0.6 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
8/10/94 CL100108 METAL ANTENNA RATIO DESIGN RULE for CS60/CS60ALE
(Revision 0.1) CS60/CS60ALE 0.1 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
5/22/96 CL100108-1 METAL ANTENNA RATIO DESIGN RULE for CS60/CS60ALE
(Revision 1.0) CS60ALE 1.0
- ----------------------------------------------------------------------------------------------------------------------
2/15/96 CL100122 MASK DESIGN RULE for CS70 version CS70 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
5/22/96 CL100122-1 MASK DESIGN RULE for CS70 (Revision 0.3) PRELIMINARY CS70 0.3
- ----------------------------------------------------------------------------------------------------------------------
7/26/96 CL100122-3 MASK DESIGN RULE for CS70 (Revision 0.4) PRELIMINARY CS70 0.4 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
4/3/97 CL100122-6 MASK DESIGN RULE for CS70 (Revision 1.2) CS70 1.2
- ----------------------------------------------------------------------------------------------------------------------
7/17/97 CL100122-7 MASK DESIGN RULE for CS70 (Revision 1.3) CS70 1.3
- ----------------------------------------------------------------------------------------------------------------------
2/15/96 CL100123 PROCESS PARAMETER for CS70 version CS70
- ----------------------------------------------------------------------------------------------------------------------
5/22/96 CL100123-1 PROCESS PARAMETER for CS70 (Revision 0.2) PRELIMINARY CS70 0.2
- ----------------------------------------------------------------------------------------------------------------------
9/5/96 CL100123-2 PROCESS PARAMETER for CS70 (Revision 0.3) PRELIMINARY CS70 0.3 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
4/3/97 CL100123-3 PROCESS PARAMETER for CS70 (Revision 1.0) CS70 1.0
- ----------------------------------------------------------------------------------------------------------------------
8/26/97 CL100123-4 PROCESS PARAMETER for CS70 (Revision 2.0) CS70 2.0 T. Smith
- ----------------------------------------------------------------------------------------------------------------------
5/22/96 CL100124-1 LEVEL CODE TABLE for CS70 (Revision 0.2) PRELIMINARY CS70 0.2
- ----------------------------------------------------------------------------------------------------------------------
9/5/96 CL100124-2 LEVEL CODE TABLE for CS70 (Revision 0.3) PRELIMINARY CS70 0.3
- ----------------------------------------------------------------------------------------------------------------------
4/3/97 CL100124-4 LEVEL CODE TABLE for CS70 (Revision 1.1) CS70 1.1
- ----------------------------------------------------------------------------------------------------------------------
5/22/96 CL100125 PERMITTED CURRENT for CS70 (Revision 0.1) PRELIMINARY CS70 0.1
- ----------------------------------------------------------------------------------------------------------------------
4/3/97 CL100125-1 PERMITTED CURRENT for CS70 (Revision 1.0) CS70 1.0
- ----------------------------------------------------------------------------------------------------------------------
5/22/96 CL100132 LAYOUT GUIDE for CS70 (Revision 0.1) PRELIMINARY CS70 0.1
- ----------------------------------------------------------------------------------------------------------------------
4/3/97 CL100132-1 LAYOUT GUIDE for CS70 (Revision 1.0) CS70 1.0
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 26
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
date Doc. No. Title Tech Rev. Attn.
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
5/22/96 CL100139 METAL ANTENNA RATIO DESIGN RULE for CS70
(Revision 0.1) PRELIMINARY CS70 0.1
- ------------------------------------------------------------------------------------------------------------------------------------
4/3/97 CL100139-1 METAL ANTENNA RATIO DESIGN RULE for CS70 (Revision 1.0) CS70 1.0
- ------------------------------------------------------------------------------------------------------------------------------------
7/17/97 CL100139-2 METAL ANTENNA RATIO DESIGN RULE for CS70 (Revision 1.1) CS70 1.1
- ------------------------------------------------------------------------------------------------------------------------------------
5/22/96 CL100142 MASK DESIGN RULE (for FUSE) for CS70
(Revision 0.1) PRELIMINARY CS70 0.1
- ------------------------------------------------------------------------------------------------------------------------------------
4/3/97 CL100142-3 MASK DESIGN RULE (for FUSE) for CS70 (Revision 1.0) CS70 1.0
- ------------------------------------------------------------------------------------------------------------------------------------
7/10/96 CL100147 Hot Carrier Degradation Simulation Method for CS70
(Revision 0.1) PRELIMINARY CS70 0.1 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
7/17/97 CL100147-1 Hot Carrier Degradation Simulation Method for CS70
(Revision 1.0) CS70 1.0
- ------------------------------------------------------------------------------------------------------------------------------------
1/7/98 CL100160 Mask Data Release Form Fujitsu COT (Revision 1.0) 1.0 P. Jewett
- ------------------------------------------------------------------------------------------------------------------------------------
5/28/93 CL115018-2 MASK DESIGN RULE for ROSS Technology, Inc. CS50 5.82
- ------------------------------------------------------------------------------------------------------------------------------------
11/2/93 CL115018-3 MASK DESIGN RULE for ROSS Technology, Inc. CS50 6.0C
- ------------------------------------------------------------------------------------------------------------------------------------
12/14/93 CL115018-4 MASK DESIGN RULE CS50 version for ROSS Technology,
Inc. (Revision 6.1C) CS50 6.1C T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
10/15/93 CL115029 MASK DESIGN RULE (for FUSE) CS50 version for ROSS
Technology, INC. (Revision 0.1) CS50 0.1 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
4/28/94 CL115065 TEST DATA RELEASE FORM for ROSS Technology, inc.
(CS50 VERSION) CS50 J. Horner
- ------------------------------------------------------------------------------------------------------------------------------------
9/5/96 CL115153 MASK DESIGN RULE for Colorado5 (Revision 0.1) PRELIMINARY Colorado-5
- ------------------------------------------------------------------------------------------------------------------------------------
9/5/96 CL115155 PROCESS PARAMETER for Colorado5 (Revision 0.1) PRELIMINARY Colorado-5
- ------------------------------------------------------------------------------------------------------------------------------------
12/6/96 CL115155-1 PROCESS PARAMETER for Colorado5 (Revision 0.2) PRELIMINARY Colorado5 0.2 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
11/27/96 CL115165 FUSE CELL PLACEMENT RULE for Colorado5 Rev1.0 Colorado5 1.0 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
6/24/93 CS50-1519-200 List of I/O cells for ROSS Technology CS50 1.1
- ------------------------------------------------------------------------------------------------------------------------------------
5/24/93 CS50-1575-200 I/O CIRCUIT DIAGRAM CS50 1.1
- ------------------------------------------------------------------------------------------------------------------------------------
3/30/93 data DRACULA DRC RULE FILE CS50 3.01
- ------------------------------------------------------------------------------------------------------------------------------------
5/18/93 data CS50 sample chip (4 pieces) CS50
- ------------------------------------------------------------------------------------------------------------------------------------
5/18/93 data GDSII of I/O cells for ROSS Technology CS50 0.01
- ------------------------------------------------------------------------------------------------------------------------------------
5/28/93 data SPICE MOSFET MODEL PARAMETER CS50 4.0c
- ------------------------------------------------------------------------------------------------------------------------------------
11/5/93 data program 'yohko'
- ------------------------------------------------------------------------------------------------------------------------------------
12/21/93 data SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean)
process (Revision 0.3) CS55 0.3
- ------------------------------------------------------------------------------------------------------------------------------------
3/10/94 data SPICE MOSFET MODEL PARAMETER for CS60 (30.35 population mean)
process (Revision 2.01) PRELIMINARY CS60 2.01 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
6/19/94 data SPICE MOSFET MODEL PARAMETER for 0.35 (population mean)
process (Revision 4.10) 4.10 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
8/8/94 data DRACULA DRC RULE FILE for CS60 Revision 3.00 CS60 3.00 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
8/22/94 data SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean)
process (Revision 0.3a) CS55 0.3a T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
12/1/94 data SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean)
process (Revision 0.5) CS55 0.5 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
12/9/94 data DRACULA DRC RULE FILE for CS60 Revision 1.11 CS60 1.11 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
12/14/94 data FUSE CELL GDS2 data for CS60 version (Revision 3.0) CS60 3.0 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
2/9/95 data CS60 I/O cell GDS2 CS60 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
7/21/95 data FUSE CELL GDS2 data for CS60 version (Revision 2.1) CS60 2.1 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
9/28/95 data CS60ALE DRC card (Revision 1.21) CS60ALE 1.21
- ------------------------------------------------------------------------------------------------------------------------------------
5/22/96 data CS60ALE DRC card (Revision 1.31) CS60ALE 1.31
- ------------------------------------------------------------------------------------------------------------------------------------
5/22/96 data SPICE MOSFET MODEL PARAMETER for CS70 process
(Revision 1.11) PRELIMINARY CS70 1.11 P. Jewett
- ------------------------------------------------------------------------------------------------------------------------------------
7/10/96 data SPICE MOSFET MODEL PARAMETER for CS70 process
(Revision 1.20) PRELIMINARY CS70 1.20 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
8/27/96 data SPICE MOSFET MODEL PARAMETER for CS70 process
(Revision 1.22) PRELIMINARY CS70 1.22 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
8/29/96 data SPICE MOSFET MODEL PARAMETER for CS70 process
(Revision 1.23) PRELIMINARY CS70 1.23 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
9/24/96 data HSPICE Parameter for CS70 SRAM CELL R1.00 CS70 1.0 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
11/27/96 data FUSE CELL GDS for Colorado5 Rev. 1.0 Colorado5 1.0 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
4/3/97 data SPICE MOSFET MODEL PARAMETER for CS70 process
(Revision 1.24) PRELIMINARY CS70 1.24 P. Jewett
- ------------------------------------------------------------------------------------------------------------------------------------
7/17/97 data SPICE MOSFET MODEL PARAMETER for CS70 process
(Revision 2.00) CS70 2.0 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
9/28/93 data SPICE MOSFET MODEL PARAMETER for CMOS 0.35 (population mean)
process (Revision 1.10) 1.10 T. Smith
- ------------------------------------------------------------------------------------------------------------------------------------
10/21/97 EX115006 CS55 WAFER PROCESS FLOW for ROSS TECHNOLOGY, INC. (REV.1.0) CS55 1.0 J. Salzman
- ------------------------------------------------------------------------------------------------------------------------------------
10/21/97 EX115007 CS60 WAFER PROCESS FLOW for ROSS TECHNOLOGY, INC. (REV.1.0) CS60 1.0 J. Salzman
- ------------------------------------------------------------------------------------------------------------------------------------
10/27/97 EX115008 Wafer Packing Specifications for ROSS TECHNOLOGY, INC.
- ------------------------------------------------------------------------------------------------------------------------------------
4/28/94 GAT10379 Pin Code Table for Fujitsu CMOS COT J. Horner
- ------------------------------------------------------------------------------------------------------------------------------------
12/10/93 S93/T00-0852/005 MB82VC32 TARGET SPEC V1.4 CM50A M. Alsup
- ------------------------------------------------------------------------------------------------------------------------------------
2/17/95 T15B5025 Pysical Construction Analysis of CS55 CS55 H. Melton
- ------------------------------------------------------------------------------------------------------------------------------------
12/14/95 T15D5017 Pull Strength Test Results of CS60 New Bonding Pad Structure CS60
- ------------------------------------------------------------------------------------------------------------------------------------
12/14/95 T15D5018 CS60 Bonding Pad CS60
- ------------------------------------------------------------------------------------------------------------------------------------
11/5/93 EXECUTION EXAMPLE
- ------------------------------------------------------------------------------------------------------------------------------------
11/5/93 YOHKO General Description
- ------------------------------------------------------------------------------------------------------------------------------------
11/5/93 YOHKO Installation/Operating Instructions
- ------------------------------------------------------------------------------------------------------------------------------------
11/5/93 YOHKO User's Guide Release Notes October 18th 1991
- ------------------------------------------------------------------------------------------------------------------------------------
11/5/93 YOHKO Version 1.0 User's Guide
- ------------------------------------------------------------------------------------------------------------------------------------
1/20/94 Quality and Reliability Assurance J. Horner
- ------------------------------------------------------------------------------------------------------------------------------------
5/13/94 Quality and Reliability Assurance (MB86904) CS50 J. Horner
- ------------------------------------------------------------------------------------------------------------------------------------
11/24/95 Quality and Reliability Assurance CS55 Series CS55 J. Jones
- ------------------------------------------------------------------------------------------------------------------------------------
11/24/95 Quality and Reliability Assurance CS60 Series CS60 J. Jones
- ------------------------------------------------------------------------------------------------------------------------------------
12/26/97 Quality and Reliability Assurance (CS60) CS60 J. Salzman
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 27
X. DESIGN AGREEMENT
Attached.
C-11
<PAGE> 28
<TABLE>
<CAPTION>
Design Agreement
- ----------------------------------------------------------------------------------------------------------------------------
date Doc.No. Title Tech. Rev. Attn>
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
6/16/95 S95/B751-004 ./C32/ms4rev4_FJ-metal1 (GDS data of C32 (ms4rev4-FJmetal1)) CM50/\ P. Jewett
- ----------------------------------------------------------------------------------------------------------------------------
6/16/95 S95/B751-004 ./C32/schema.ps (Schematics of C32) CM50/\
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 29
XI. CM50A+ SRAM CELL LICENSE AGREEMENT
Attached.
C-12
<PAGE> 30
CM50A + SRAM Cell License Agreement
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
date Doc. No. Title Rev. Attn.
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
11/13/96 EX1150002 Level Code Table 1.0 P. Jewett
- ----------------------------------------------------------------------------------------------------------------------------------
11/13/96 EX1150001-1 Mask Design Rule 2.0 P. Jewett
- ----------------------------------------------------------------------------------------------------------------------------------
11/13/96 Process Parameter 1.0 P. Jewett
- ----------------------------------------------------------------------------------------------------------------------------------
11/13/96 EX1150003 Process Parameter 1.0 P. Jewett
- ----------------------------------------------------------------------------------------------------------------------------------
11/13/96 SRAM size P. Jewett
- ----------------------------------------------------------------------------------------------------------------------------------
12/5/96 EX1150005 CM50A + SRAM cell library (GDS data "C64cell.strm") P. Jewett
- ----------------------------------------------------------------------------------------------------------------------------------
12/5/96 EX1150005 CM50A + SRAM cell library (Edge data "C64cell.current") P. Jewett
- ----------------------------------------------------------------------------------------------------------------------------------
12/5/96 EX1150005 CM50A + SRAM cell library ("strm_1yr_file") P. Jewett
- ----------------------------------------------------------------------------------------------------------------------------------
12/5/96 EX1150005 CM50A + SRAM cell library (Memory cell design for CM50A + "C64 cell.doc") P. Jewett
- ----------------------------------------------------------------------------------------------------------------------------------
4/3/97 data SPICE MOSFET MODEL PARAMETER for CS50A + (0.4 u m) process (Revision 0.10) 0.1 P. Jewett
- ----------------------------------------------------------------------------------------------------------------------------------
4/10/98 CL115003-1 PROCESS PARAMETER CM50A + version for ROSS - C64 REV. 2.0 2.0 J. Salzman
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 31
XII. FUJITSU TECHNICAL INFORMATION
C-13
<PAGE> 32
VIPER DEVELOPMENT AGREEMENT
<TABLE>
<CAPTION>
DOCUMENT/DATA# TITLE
<S> <C>
1. CL115123 PROCESS PARAMETER for CS70 (for VIPER) (Revision 0.1)
2. CL115122 MASK DESIGN RULE for CS70 (for VIPER) (Revision 1.0)
3. CL115123-1 PROCESS PARAMETER for CS70 (for VIPER) (Revison 1.0)
4. CL115122-1 MASK DESIGN RULE for CS70 (for VIPER) (Revision 1.1)
5. CL115123-2 PROCESS PARAMETER for CS70 (for VIPER) (Revision 1.1)
6. CL115125-1 PERMITTED CURRENT for CS70 (for VIPER) (Revision 1.1)
7. CL115142 MASK DESIGN RULE (for FUSE) for CS70 (for VIPER) (Revision 1.0)
8. CL100201 MASK DESIGN RULE for CS75 (Revision 0.1)
9. CL100203 PERMITTED CURRENT for CS75 (Revision 0.1)
10. CL100202-1 PROCESS PARAMETER for CS75 (Revision 0.2)
</TABLE>
C-13A
<PAGE> 33
CM50A+ LICENSE AGREEMENT
<TABLE>
<CAPTION>
DOCUMENT/DATA# TITLE
<S> <C>
1. EX115002 Level Code Table
2. EX115001 Mask Design Rule
3. EX115003 Process Parameter
4. none SRAM size
5. EX115005 CM50A + SRAM cell library (GDS data "C64cell.strm")
6. EX115005 CM50A + SRAM cell library (Edge data "C64.current")
7. EX115005 CM50A + SRAM cell library ("strm_lyr_file")
8. EX115005 CM50A + SRAM cell library
(Memory dell design for CM50A + "C64cell.doc")
9. data SPICE MOSFET MODEL PARAMETER"
for CS50A + (0.4 i m) process (Revision 0.10)
10. CL115003-1 PROCESS PARAMETER CM50A + version for ROSS-C64 REV.2.0
11. EX115001-1 Mask Design Rule
</TABLE>
C-13B
<PAGE> 34
DESIGN AGREEMENT
<TABLE>
<CAPTION>
DOCUMENT/DATA# TITLE
<S> <C>
1. S95/B751-004 ./C32/ms4rev4_FJ-metal1 (GDS data of C32 (ms4rev4-FJmetal1))
2. S95/B751-004 ./C32/schema.ps (Schematics of C32)
</TABLE>
C-13C
<PAGE> 35
CS70 LICENSE AGREEMENT
<TABLE>
<CAPTION>
TITLE
<S> <C>
1. Erd1met3.cdl (netlist of SRAM Cell)
2. Erd1met3.gds (GDS data of SRAM Cell)
</TABLE>
C-13D
<PAGE> 36
COLORADO NON-DISCLOSURE AGREEMENT
Attached.
C-13E
<PAGE> 37
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Document # Title Remarks
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 CL100017-10 SPICE MOSFET MODEL PARAMETER Deleted
- ---------------------------------------------------------------------------------------------------------------------
2 CL100018-5 MASK DESIGN RULE Deleted
- ---------------------------------------------------------------------------------------------------------------------
3 CL100018-9 MASK DESIGN RULE for CS50 version (Revision 6.1) Deleted
- ---------------------------------------------------------------------------------------------------------------------
4 CL100021-6 LEVEL CODE TABLE Deleted
- ---------------------------------------------------------------------------------------------------------------------
5 CL100021-8 LEVEL CODE TABLE FOR CS50/CS52 version (Revision 4.5) Deleted
- ---------------------------------------------------------------------------------------------------------------------
6 CL100024-2 PROCESS PARAMETER Deleted
- ---------------------------------------------------------------------------------------------------------------------
7 CL100025-1 PERMITTED CURRENT Deleted
- ---------------------------------------------------------------------------------------------------------------------
8 CL100025-2 PERMITTED CURRENT Deleted
- ---------------------------------------------------------------------------------------------------------------------
9 CL100027-1 ROUTING LAYER CAPACITANCE (detailed information) Deleted
- ---------------------------------------------------------------------------------------------------------------------
10 CL100029-1 MASK DESIGN RULE (for FUSE) Deleted
- ---------------------------------------------------------------------------------------------------------------------
11 CL100029-2 MASK DESIGN RULE (for FUSE) Deleted
- ---------------------------------------------------------------------------------------------------------------------
12 CL100030 MASK DATA RELEASE FORM Deleted
- ---------------------------------------------------------------------------------------------------------------------
13 CL100033 FTDL-E User's Manual for Fujitsu CMOS COT Deleted
- ---------------------------------------------------------------------------------------------------------------------
14 CL100037-2 Generation Method of Dummy Metal-1 pattern by DRACULA Deleted
- ---------------------------------------------------------------------------------------------------------------------
15 CL100048-3 SPICE MOSFET MODEL PARAMETER for CMOS 0.35 (population mean) process Deleted
(Revision 1.10)
- ---------------------------------------------------------------------------------------------------------------------
16 CL100048-6 SPICE MOSFET MODEL PARAMETER for CS60 (0.35 population mean) process Deleted
(Revision 2.01) PRELIMINARY
- ---------------------------------------------------------------------------------------------------------------------
17 CL100048-7 SPICE MOSFET MODEL PARAMETER for 0.35 (population mean) process (Revision 4.10) Deleted
- ---------------------------------------------------------------------------------------------------------------------
18 CL100055 DRACULA DRC RULE FILE Deleted
- ---------------------------------------------------------------------------------------------------------------------
19 CL100056 Process Control Monitor Deleted
- ---------------------------------------------------------------------------------------------------------------------
20 CL100060-4 MASK DESIGN RULE for CS60 version (Revision 2.2) Deleted
- ---------------------------------------------------------------------------------------------------------------------
21 CL100060-5 MASK DESIGN RULE for CS60 (Revision 2.3) Deleted
- ---------------------------------------------------------------------------------------------------------------------
22 CL100061-3 PROCESS PARAMETER for CS60 (Revision 3.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
23 CL100061-4 PROCESS PARAMETER for CS60 (Revision 3.1) Deleted
- ---------------------------------------------------------------------------------------------------------------------
24 CL100064-1 P.C.M. Measurement Condition Deleted
- ---------------------------------------------------------------------------------------------------------------------
25 CL100073 SCRIBE STRUCTURE Deleted
- ---------------------------------------------------------------------------------------------------------------------
26 CL100077 Hot Carrier Condition under AC Stressing Deleted
- ---------------------------------------------------------------------------------------------------------------------
27 CL100078 Hot Carrier Condition under AC Stressing for CS50/CS52 version (Revision 1.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
28 CL100079 SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean) process (Revision 0.3) Deleted
- ---------------------------------------------------------------------------------------------------------------------
29 CL100079-1 SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean) process (Revision 0.3a) Deleted
- ---------------------------------------------------------------------------------------------------------------------
30 CL100079-2 SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean) process (Revision 0.5) Deleted
- ---------------------------------------------------------------------------------------------------------------------
31 CL100081 MASK DESIGN RULE for CS55 version (Revision 1.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
32 CL100082-1 PROCESS PARAMETER FOR CS55 version (Revision 1.1) Deleted
- ---------------------------------------------------------------------------------------------------------------------
33 CL100083 Hot Carrier Condition under AC Stressing for CS55 version (Revision 1.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
34 CL100083 Hot Carrier Condition under AC Stressing for CS55 version (Revision 1.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
35 CL100089-2 MASK DESIGN RULE (for FUSE) for CS60 version (Revision 2.1) Deleted
- ---------------------------------------------------------------------------------------------------------------------
36 CL100089-3 MASK DESIGN RULE (for FUSE) for CS60 version (Revision 3.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
37 CL100092 FUSE CELL PLACEMENT RULE for CS60 version (Revision 1.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
38 CL100093 MASK DESIGN RULE for CS60ALE version (Revision 0.1) Deleted
- ---------------------------------------------------------------------------------------------------------------------
39 CL100093-3 MASK DESIGN RULE for CS60ALE version (Revision 1.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
40 CL100093-5 MASK DESIGN RULE for CS60ALE (Revision 1.2) Deleted
- ---------------------------------------------------------------------------------------------------------------------
41 CL100093-6 MASK DESIGN RULE for CS60ALE (Revision 1.3) Deleted
- ---------------------------------------------------------------------------------------------------------------------
42 CL100101-1 PROCESS PARAMETER for CS60ALE (Revision 0.2) Deleted
- ---------------------------------------------------------------------------------------------------------------------
43 CL100101-2 PROCESS PARAMETER for CS60ALE (Revision 03) Deleted
- ---------------------------------------------------------------------------------------------------------------------
44 CL100101-3 PROCESS PARAMETER for CS60ALE (Revision 1.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
45 CL100102-1 MASK DESIGN RULE (for FUSE) for CS60ALE version (Revision 1.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
46 CL100103-1 LEVEL CODE TABLE for CS60ALE (Revision 0.2) Deleted
- ---------------------------------------------------------------------------------------------------------------------
47 CL100103-3 LEVEL CODE TABLE for CS60ALE (Revision 2.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
48 CL100103-4 LEVEL CODE TABLE for CS60ALE (Revision 3.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
49 CL100104 PERMITTED CIRRENT for CS60ALE (Revision 0.1) Deleted
- ---------------------------------------------------------------------------------------------------------------------
50 CL100104-1 PERMITTED CIRRENT for CS60ALE (Revision 0.2) Deleted
- ---------------------------------------------------------------------------------------------------------------------
51 CL100104-2 PERMITTED CIRRENT for CS60ALE (Revision 1.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
52 CL100106 ESD/Latch Up Guide Line for CS60 (Revision 0.1) Preliminary Deleted
- ---------------------------------------------------------------------------------------------------------------------
53 CL100107 Hot Carrier Degradation Simulation Meyhod for CS60 (Revision 0.5) Preliminary Deleted
- ---------------------------------------------------------------------------------------------------------------------
54 CL100107-1 Hot Carrier Degradation Simulation Method for CS60 (Revision 0.6) Preliminary Deleted
- ---------------------------------------------------------------------------------------------------------------------
55 CL100108 METAL ANTENNA RATIO DESIGN RULE for CS60/CS60ALE (Revision 0.1) Deleted
- ---------------------------------------------------------------------------------------------------------------------
56 CL100108-1 METAL ANTENNA RATIO DESIGN RULE for CS60/CS60ALE (Revision 1.0) Deleted
- ---------------------------------------------------------------------------------------------------------------------
57 CL100122 MASK DESIGN RULE for CS70 version Destroyed & Erased
- ---------------------------------------------------------------------------------------------------------------------
58 CL100122-1 MASK DESIGN RULE for CS70 (Revision 0.3) PRELIMINARY Destroyed & Erased
- ---------------------------------------------------------------------------------------------------------------------
59 CL100122-3 MASK DESIGN RULE for CS70 (Revision 0.4) PRELIMINARY Destroyed & Erased
- ---------------------------------------------------------------------------------------------------------------------
60 CL100122-6 MASK DESIGN RULE for CS70 (Revision 1.2) Destroyed & Erased
- ---------------------------------------------------------------------------------------------------------------------
61 CL100122-7 MASK DESIGN RULE for CS70 (Revision 1.3) Destroyed & Erased
- ---------------------------------------------------------------------------------------------------------------------
62 CL100123 PROCESS PARAMETER for CS70 version Destroyed & Erased
- ---------------------------------------------------------------------------------------------------------------------
63 CL100123-1 PROCESS PARAMETER for CS70 (Revision 0.2) PRELIMINARY Destroyed & Erased
- ---------------------------------------------------------------------------------------------------------------------
64 CL100123-2 PROCESS PARAMETER for CS70 (Revision 0.3) PRELIMINARY Destroyed & Erased
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 38
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Document# Title Remarks
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
65 CL100123-3 PROCESS PARAMETER for CS70 (Revision 1.0) Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
66 CL100123-4 PROCESS PARAMETER for CS70 (Revision 2.0) Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
67 CL100124-1 LEVEL CODE TABLE for CS70 (Revision 0.2) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
68 CL100124-2 LEVEL CODE TABLE for CS70 (Revision 0.3) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
69 CL100124-4 LEVEL CODE TABLE for CS70 (Revision 1.1) Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
70 CL100125 PERMITTED CURRENT for CS70 (Revision 0.1) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
71 CL100125-1 PERMITTED CURRENT for CS70 (Revision 1.0) Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
72 CL100132 LAYOUT GUIDE for CS70 (Revision 0.1) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
73 CL100132-1 LAYOUT GUIDE for CS70 (Revision 1.0) Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
74 CL100139 METAL ANTENNA RATIO DESIGN RULE for CS70 (Revision 0.1) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
75 CL100139-1 METAL ANTENNA RATIO DESIGN RULE for CS70 (Revision 1.0) Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
76 CL100139-2 METAL ANTENNA RATIO DESIGN RULE for CS70 (Revision 1.1) Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
77 CL100142 MASK DESIGN RULE (for FUSE) for CS70 (Revision 0.1) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
78 CL100142-3 MASK DESIGN RULE (for FUSE) for CS70 (Revision 1.0) Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
79 CL100147 Hot Carrier Degradation Simulation Method for CS70 (Revision 0.1) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
80 CL100147-1 Hot Carrier Degradation Simulation Method for CS70 (Revision 1.0) Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
81 CL100160 Mask Data Release Form Fujitsu COT (Revision 1.0) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
82 CL115018-2 MASK DESIGN RULE for ROSS Technology, Inc. Deleted
- --------------------------------------------------------------------------------------------------------------------------------
83 CL115018-3 MASK DESIGN RULE for ROSS Technology, Inc. Deleted
- --------------------------------------------------------------------------------------------------------------------------------
84 CL115018-4 MASK DESIGN RULE CS50 version for ROSS Technology, Inc. (Revision 6.1C) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
85 CL115029 MASK DESIGN RULE (for FUSE) CS50 version for ROSS Technology, INC. (Revision 0.1) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
86 CL115065 TEST DATA RELEASE FORM for ROSS Technology, Inc. (CS50 version) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
87 CL115153 MASK DESIGN RULE for Colorado5 (Revision 0.1) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
88 CL115155 PROCESS PARAMETER for Colorado5 (Revision 0.1) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
89 CL115155-1 PROCESS PARAMETER for Colorado5 (Revision 0.2) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
90 CL115165 FUSE CELL PLACEMENT RULE for Colorado5 Rev 1.0 Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
91 CS50-1519-200 List of I/O cells for ROSS Technology Deleted
- --------------------------------------------------------------------------------------------------------------------------------
92 CS50-1575-200 I/O CIRCUIT DIAGRAM Deleted
- --------------------------------------------------------------------------------------------------------------------------------
93 data DRACULA DRC RULE FILE Deleted
- --------------------------------------------------------------------------------------------------------------------------------
94 data CS50 sample chip (4 pieces) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
95 data GDSII of I/O cells for ROSS Technology Deleted
- --------------------------------------------------------------------------------------------------------------------------------
96 data SPICE MOSFET MODEL PARAMETER Deleted
- --------------------------------------------------------------------------------------------------------------------------------
97 data program 'yohko' Deleted
- --------------------------------------------------------------------------------------------------------------------------------
98 data SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean) process (Revision 0.3) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
99 data SPICE MOSFET MODEL PARAMETER for CS60 (0.35 population mean) process
(Revision 2.01) PRELIMINARY Deleted
- --------------------------------------------------------------------------------------------------------------------------------
100 data SPICE MOSFET MODEL PARAMETER for 0.35 (population mean) process (Revision 4.10) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
101 data DRACULA DRC RULE FILE for CS60 Revision 3.00 Deleted
- --------------------------------------------------------------------------------------------------------------------------------
102 data SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean) process (Revision 0.3a) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
103 data SPICE MOSFET MODEL PARAMETER for CS55 (0.4 population mean) process (Revision 0.5) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
104 data DRACULA DRC RULE FILE for CS60 Revision 1.11 Deleted
- --------------------------------------------------------------------------------------------------------------------------------
105 data FUSE CELL GDS2 data for CS60 version (Revision 3.0) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
106 data CS60 I/O cell GDS2 Deleted
- --------------------------------------------------------------------------------------------------------------------------------
107 data FUSE CELL GDS2 data for CS60 version (Revision 2.1) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
108 data CS60ALE DRC card (Revision 1.21) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
109 data CS60ALE DRC card (Revision 1.31) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
110 data SPICE MOSFET MODEL PARAMETER for CS70 process (Revision 1.11) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
111 data SPICE MOSFET MODEL PARAMETER for CS70 process (Revision 1.20) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
112 data SPICE MOSFET MODEL PARAMETER for CS70 process (Revision 1.22) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
113 data SPICE MOSFET MODEL PARAMETER for CS70 process (Revision 1.23) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
114 data HSPICE Parameter for CS70 SRAM CELL R1.00 Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
115 data FUSE CELL GDS for Colorado5 Rev.1.0 Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
116 data SPICE MOSFET MODEL PARAMETER for CS70 process (Revision 1.24) PRELIMINARY Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
117 data SPICE MOSFET MODEL PARAMETER for CS70 process (Revision 2.00) Destroyed & Erased
- --------------------------------------------------------------------------------------------------------------------------------
118 data SPICE MOSFET MODEL PARAMETER for CMOS 0.35 (population mean) process
(Revision 1.10) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
119 EX115006 CS55 WAFER PROCESS FLOW for ROSS TECHNOLOGY, INC. (Rev. 1.0) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
120 EX115007 CS60 WAFER PROCESS FLOW for ROSS TECHNOLOGY, INC. (Rev. 1.0) Deleted
- --------------------------------------------------------------------------------------------------------------------------------
121 EX115008 Wafer Packing Specifications for ROSS TECHNOLOGY, INC. Deleted
- --------------------------------------------------------------------------------------------------------------------------------
122 GAT10379 Pin Code Table for Fujitsu CMOS COT Deleted
- --------------------------------------------------------------------------------------------------------------------------------
123 S93/T00-0852/00 MB82VC32 TARGET SPEC V1.4 Deleted
- --------------------------------------------------------------------------------------------------------------------------------
124 T15B5025 Physical Construction Analysis of CS55 Deleted
- --------------------------------------------------------------------------------------------------------------------------------
125 T15D5017 Pull Strength Test Results of CS60 New Bonding Pad Structure Deleted
- --------------------------------------------------------------------------------------------------------------------------------
126 TI5D5018 CS60 Bonding Pad Deleted
- --------------------------------------------------------------------------------------------------------------------------------
127 none EXECUTION EXAMPLE Returned
- --------------------------------------------------------------------------------------------------------------------------------
128 none YOHKO General Description Returned
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 39
<TABLE>
<CAPTION>
Document # Title Remarks
<S> <C> <C> <C>
129 none YOHKO Installation/Operating Instructions Returned
130 none YOHKO User's Guide Release Notes October 18th 1991 Returned
131 none YOHKO Version 1.0 User's Guide Returned
132 none Quality and Reliability Assurance Deleted
133 none Quality and Reliability Assurance (MB86904) Deleted
134 none Quality and Reliability Assurance CS55 Series Deleted
135 none Quality and Reliability Assurance CS60 Series Deleted
136 none Quality and Reliability Assurance (CS60) Deleted
</TABLE>
<PAGE> 40
APPENDIX I
8.1 OWNERSHIP RIGHTS AND LICENSE
(a) Joint Ownership and License
All right, title and interest in the Specifications, Deliverables and
Product to the extent created, conceived or developed by Ross pursuant to this
Agreement (including any discoveries created, conceived or developed by Ross in
consultation with Fujitsu) or by Fujitsu and/or HaL engineers working with Ross
pursuant to Section 3.3, including, but not limited to, (i) the Licensable Viper
Design Methodology (ii) all modifications and additions (including Error
corrections) to the Specifications, Deliverables and Product (including any
prototypes, work in progress, documentation or other materials related thereto)
made during the term of this Agreement, (iii) worldwide ownership of all
Intellectual Property Rights with respect to the Specifications, Deliverables
and Product (including any prototypes, work in progress, documentation or other
materials related thereto) and (iv) any ideas concepts, techniques, inventions,
creations, works, processes, designs or methods that are embodied therein or
that are necessary for the design, development, implementation, assembly,
testing, operation, modification or other use thereof, (but expressly excluding
the Non-Licensable Design Methodology, the Existing Viper Technology, the
Pre-Viper Technology, the Sun Technology and the Fujitsu
Technology)(collectively, the "New Technology"), is hereby vested equally in
Ross and Fujitsu as joint owners and each Party hereby assigns, and agrees to
assign, to the other Party an irrevocable, worldwide, nonexclusive, perpetual,
royalty-free undivided fifty percent (50%) interest in and to all of the New
Technology without any obligation to account to or obtain the consent of the
other Party for the exercise of any rights by a Party, the grant of any license
by a Party or otherwise with respect to the New Technology except as follows:
(i) Fujitsu's consent shall be required to the grant by Ross of a license
of the New Technology to any Person, provided that any licensees (including
Subsidiaries) shall be subject to the restrictions set forth in this Agreement
and shall not have the right to grant sublicenses; and
(ii) the consent of Fujitsu shall be required for the grant by Ross of a
license of the Viper Microprocessor Core (including all or any portion of the
Existing Viper Technology utilized in the Viper Microprocessor Core) to any
Person, including, without limitation, any Transferred Business, which consent
may be withheld by Fujitsu in its sole discretion; and
(iii) Ross shall not, without the prior written consent of Fujitsu, sell,
convey, transfer or assign, in whole or in part, its ownership interest in the
New Technology.
For the avoidance of doubt, Fujitsu shall have the unrestricted right to
grant licenses of the New Technology without any obligation to obtain Ross'
consent or provide payment to Ross in connection with any such license.
<PAGE> 1
EXHIBIT 10.2
TECHNOLOGY FRAMEWORK AGREEMENT
THIS TECHNOLOGY FRAMEWORK AGREEMENT (this "AGREEMENT") is effective as
of the "CLOSING DATE" referred to in the Purchase Agreement (as defined below)
(the "EFFECTIVE DATE"), and is by and between Fujitsu Limited, a Japanese
corporation ("FUJITSU"), ROSS Technology, Inc., a Delaware corporation ("ROSS"),
and BridgePoint Technical Manufacturing Corporation, a Texas corporation
("BRIDGEPOINT").
W I T N E S S E T H:
WHEREAS, BridgePoint will acquire the manufacturing (including failure
analysis and reliability testing), sale, distribution and customer service
business of Ross (as more specifically set forth in the Purchase Agreement) as
of the closing of the Asset Purchase Agreement, dated as of July 23, 1998 (the
"PURCHASE AGREEMENT"), between Ross and BridgePoint; and
WHEREAS, Ross has transferred certain of its intellectual property to
Fujitsu under that certain Asset Purchase and License Agreement, dated as of
July 10, 1998 (the "FJ PURCHASE AGREEMENT"), between Fujitsu and Ross; and
WHEREAS, Ross desires to transfer to BridgePoint its Manufacturing
Technology (as defined below) and license to BridgePoint the Ross Designs (as
defined below) and other Intellectual Property (as defined below) necessary for
the Business, and Fujitsu desires to license to BridgePoint certain Intellectual
Property for the Business, each on the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the premises, mutual covenants and
agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
mutually agree as follows:
ARTICLE I
DEFINITIONS
The following terms as used in this Agreement have the meanings set
forth in this Article:
1.01 The term "AFFILIATE" shall have the meaning set forth in the
Purchase Agreement.
1.02 The term "BRIDGEPOINT IMPROVEMENT" shall mean any Intellectual
Property, including, without limitation, any design, fix, formula, process,
trade secret, know-how, software, test programs, technical data or information
relating to the Ross Technology, Ross Designs or the Transferred Products,
acquired or developed by BridgePoint, its Affiliates or agents on or after the
Effective Date.
1.03 The term "BUSINESS" shall have the meaning set forth in the
Purchase Agreement.
1.04 The term "FJ TECHNOLOGY" shall mean all of the Intellectual
Property transferred by Ross to Fujitsu pursuant to the FJ Purchase Agreement.
-1-
<PAGE> 2
1.05 The term "INTELLECTUAL PROPERTY" shall have the meaning set forth
in the Purchase Agreement.
1.06 The term "MANUFACTURING TECHNOLOGY" shall mean the designs, fixes,
formulas, processes, trade secrets, know-how, software, test programs, technical
data and information developed by Ross (or developed for Ross by its agents)
prior to the Effective Date relating to the manufacture, failure analysis and
reliability testing of the Transferred Products, including the generation of
pseudo-random test vectors, synchronized testing and other testing methods
developed and used by Ross or its agents, but not including any of the same
relating to the manufacture, failure analysis and reliability testing of Viper
products.
1.07 The term "ROSS DESIGNS" shall mean all layouts, designs,
blueprints, schematics, drawings, CAD-drawings, copyrights, mask works and
documentation (including, without limitation, documentation in "flat-file" or
any other format) developed by Ross (or developed for Ross by its agents) prior
to the Effective Date relating to the Transferred Products.
1.08 The term "ROSS PATENTS" shall mean all letters patent, foreign and
domestic, covering (in whole or in part) a Transferred Product or the
manufacture thereof, under which and to the extent to which Ross has the right,
at any time while this Agreement is in effect, to grant the licenses set forth
in Article II, but not including any of the same relating to the Viper products.
1.09 The term "ROSS IMPROVEMENT" shall mean any Intellectual Property,
including, without limitation, any patent, mask work, design, fix, formula,
process, trade secret or know-how relating to the Ross Technology, Ross Designs
or the Transferred Products and acquired or developed by Ross or its agents on
or after the Effective Date.
1.10 The term "ROSS TRADE SECRETS" shall mean all software, test
programs, technical data, information and know-how, which is useful in the
manufacture of Transferred Products and which has heretofore been disclosed by
Ross to BridgePoint or which may hereinafter be disclosed by Ross to BridgePoint
at any time while this Agreement is in effect, and is owned by Ross. "Ross Trade
Secrets" shall not include technology and designs relating exclusively to 64-bit
microprocessor technology.
1.11 The term "ROSS TECHNOLOGY" shall mean the Manufacturing
Technology, Ross Patents, Ross Improvements and Ross Trade Secrets, but
excluding the Ross Designs and the FJ Technology.
1.12 The term "TRANSFERRED PRODUCTS" shall mean the 32-bit
hyperSPARC(TM) families of microprocessors and the hyperSTATION(TM) and
SPARCplug(TM) families of 32-bit systems and products manufactured (including
failure analysis and reliability testing), sold, distributed or serviced by Ross
prior to the Effective Date, and any products which may be subsequently added
thereto by written agreement between Ross and BridgePoint with the written
consent of Fujitsu, but excluding any products developed by ROSS Semiconductors
(Israel) Ltd., an Israeli corporation ("RIL"), including, without limitation,
the Core Products (as defined below).
-2-
<PAGE> 3
ARTICLE II
ROSS ASSIGNMENT AND GRANT OF LICENSES TO BRIDGEPOINT
2.01 Ross hereby transfers, assigns and conveys to BridgePoint (i) all
of its right, title and interest to all tangible or intangible embodiments of
the Transferred Products, and the exclusive right to manufacture, sell,
distribute, market, repair and maintain the Transferred Products, and (ii) all
of its right, title and interest to all Ross Technology pertaining to the
manufacture (including failure analysis and reliability testing), sale,
distribution, marketing, repair and maintenance (but not the design) of the
Transferred Products, including the Manufacturing Technology.
2.02 Ross hereby grants to BridgePoint and its Affiliates an exclusive,
perpetual, irrevocable, paid-up, royalty-free, world-wide, transferrable license
to all Ross Designs and any Ross Technology not conveyed to BridgePoint under
the preceding Section 2.01, in order to manufacture, sell, distribute, market,
repair and maintain the Transferred Products throughout the world.
2.03 Ross hereby grants to BridgePoint and its Affiliates a
non-exclusive, perpetual, irrevocable, paid-up, royalty-free license under the
Ross Designs to use, modify and create derivative works from the Ross Designs
for the exercise of the rights transferred and granted in Sections 2.01 and 2.02
above.
2.04 Ross hereby grants to BridgePoint the right to sub-license to any
customer, consultant, agent or contractor of BridgePoint the right to use the
Ross Technology to the extent required to manufacture, sell, distribute, market,
repair and maintain the Transferred Products on behalf of BridgePoint or its
Affiliates, or to use the Transferred Products for their intended purposes.
ARTICLE III
EDG TECHNOLOGY
3.01 Without prejudice to any royalties payable pursuant to the CM50A
License (as defined below) or any future or successor agreements between
BridgePoint and Fujitsu, Fujitsu hereby grants to BridgePoint a non-exclusive,
irrevocable, paid-up, royalty-free, world-wide license to use the "FJ Technical
Information" described in the undated, unsigned Wafer Manufacturing and Purchase
Agreement (the "WAFER AGREEMENT") between Fujitsu and Ross, as described in
Exhibit C to the Wafer Agreement and attached hereto for the manufacture, sale,
distribution, marketing, repair and maintenance of the Transferred Products by
BridgePoint for so long as the Wafer Agreement remains in effect. The license
granted pursuant to this Section 3.01 shall not be assignable or otherwise
transferrable by BridgePoint without the prior written consent of Fujitsu.
3.02 The layouts, designs, blueprints, schematics, drawings,
CAD-drawings and documentation regarding the FJ Technical Information will be
made available to BridgePoint by Fujitsu as soon as is reasonably practicable
after the reasonable written request (including a reasonable explanation of the
circumstances and required information) of BridgePoint. BridgePoint agrees to
return to Fujitsu any and all of the foregoing as soon as is reasonably
practicable after the license granted by Fujitsu to BridgePoint under Section
3.01 terminates in accordance with its terms.
-3-
<PAGE> 4
3.03 For the avoidance of doubt, none of the foregoing shall be deemed
to grant any rights to BridgePoint for the manufacture, sale, distribution,
marketing, repair and/or maintenance of products designed or developed by RIL,
including, without limitation, DANlite 1 and DANlite 2 ("CORE PRODUCTS").
ARTICLE IV
TERMINATION AGREEMENT TECHNOLOGY
4.01 Fujitsu hereby agrees that each of the agreements described in the
attached Exhibit A, which to Fujitsu's knowledge comprise all of the
"Agreements" under the Termination Agreement, dated as of August __, 1998 (the
"TERMINATION AGREEMENT"), between Fujitsu and Ross, under which Fujitsu has
provided Intellectual Property to Ross that relates to the Transferred Products
(the "SURVIVING AGREEMENTS") shall not be terminated pursuant to the Termination
Agreement and shall be maintained in full force and effect for the benefit of
BridgePoint; provided, however, that the continued effectiveness of the CM50A +
SRAM Cell License Agreement, dated as of September 20, 1996 (the "CM50A
LICENSE"), between Fujitsu and Ross (which is set forth on Exhibit A) is subject
to the execution and delivery by Fujitsu and BridgePoint of a mutually
satisfactory agreement regarding the supply by Fujitsu to BridgePoint of
RT-638A.X and the agreement of BridgePoint to amend Section 8.2 of the CM50A
License by inserting the words "does not warrant" in lieu of the word "warrants"
in the first line thereof. In addition, Fujitsu hereby consents to the
assignment of all rights under the Surviving Agreements from Ross to BridgePoint
and the assumption on the Effective Date by BridgePoint from Ross of all duties
and obligations of Ross under the Surviving Agreements, subject to (a) third
party consents being obtained, if required, by BridgePoint and (b) the
designation by Ross and BridgePoint of all of the Surviving Agreements as
Assumed Contracts (as defined in the Purchase Agreement) and the delivery to
Fujitsu of the fully executed Assumption Agreement (as defined in the Purchase
Agreement).
4.02 Fujitsu has delivered to BridgePoint true and complete copies of
all Surviving Agreements. In addition, at BridgePoint's request and expense, and
with respect to specific information which is subject to the Surviving
Agreements, Fujitsu shall use reasonable efforts to provide a replacement set of
any materials heretofore provided by Fujitsu to Ross under the Surviving
Agreements that have been deleted or destroyed by Ross prior to the date hereof.
ARTICLE V
ACQUIRED TECHNOLOGY
5.01 Fujitsu hereby grants to BridgePoint an exclusive, irrevocable
(subject only to Section 5.03), paid-up, royalty-free, world-wide license under
the Intellectual Property applicable to the "Assets" (as defined in the FJ
Purchase Agreement) set forth in roman numerals II and III of Exhibit A attached
to the FJ Purchase Agreement, including, without limitation, any Manufacturing
Technology included therein (the "ACQUIRED TECHNOLOGY") to make, use, sell,
import and export the Colorado 4 RT 630 CPU and the modules listed under roman
numeral III of such Exhibit A. Fujitsu agrees that such license is exclusive as
to Fujitsu and all other persons, such that Fujitsu will neither use the
Acquired Technology to manufacture the above products nor allow others to do so.
BridgePoint agrees that such license shall not be deemed to preclude Fujitsu or
its Affiliates from developing, designing, manufacturing, selling, distributing,
marketing and/or importing any other products, including, without limitation,
any Core Product.
-4-
<PAGE> 5
5.02 Fujitsu further hereby grants to BridgePoint a limited,
non-exclusive, irrevocable (subject only to Section 5.03), paid-up,
royalty-free, world-wide license (i) under the Acquired Technology, including,
without limitation, any Manufacturing Technology included therein, to modify and
create derivative works of the Transferred Products to meet customer
requirements for the use of the Transferred Products, and (ii) to use the
patents transferred to Fujitsu pursuant to the FJ Purchase Agreement solely for
the purpose of, and to the extent necessary to, manufacture (including failure
analysis and reliability testing), repair and maintain the Transferred Products.
BridgePoint hereby grants to Fujitsu and its Affiliates a non-exclusive,
irrevocable (subject only to Section 5.03), paid-up, royalty-free, world-wide
license to use, modify and create derivative works from any of the derivative
works created by BridgePoint under the other licenses set forth in this Section
5.02.
5.03 The licenses set forth in Sections 5.01, 5.02 and 5.05 shall not
be transferrable or sublicensable without the written consent of the Licensor;
provided, that BridgePoint shall have the limited ability to sublicense to any
customer, consultant, agent or contractor of BridgePoint the right to use such
licenses, which with respect to the licenses set forth in Sections 5.01 and 5.02
shall be solely to the extent necessary to, and for the purpose of, manufacture,
sell, distribute, market, repair and maintain the Transferred Products on behalf
of BridgePoint, or, in the case of customers, to use the Transferred Products
for their intended purposes; provided, that BridgePoint may transfer such
licenses in connection with an assignment of this Agreement by BridgePoint to a
successor or assignee of all, or substantially all, of BridgePoint's business
and assets relating to the Transferred Products pursuant to Section 9.14. Any
attempted assignment of licenses in violation of this Section 5.03 without the
licensor's prior written consent shall be null and void and shall constitute a
material breach of this Agreement for which there will be no cure period and,
upon which such licenses shall terminate; provided, however, that
notwithstanding such termination such licenses shall continue in effect solely
to the extent necessary to permit the party making the attempted assignment to
provide ongoing maintenance and support of Transferred Products sold and
delivered to customers prior to the date of such attempted assignment.
5.04 After the Effective Date, and as promptly as is practicable after
BridgePoint's reasonable request therefor and at BridgePoint's expense, Fujitsu
shall make available to BridgePoint copies of any materials provided by Ross to
Fujitsu under the FJ Purchase Agreement with respect to the Acquired Technology
that has not been made available to BridgePoint by Ross or Fujitsu.
5.05 Fujitsu hereby grants to BridgePoint a non-exclusive, perpetual,
irrevocable (subject only to Section 5.03), paid-up, royalty-free, world-wide
license to the Manufacturing Technology licensed above, if any, to use, modify
and create derivative works from such Manufacturing Technology. Any such
derivative works created by BridgePoint shall be the sole and exclusive property
of BridgePoint; provided, that BridgePoint hereby grants to Fujitsu and its
Affiliates a non-exclusive, perpetual, irrevocable (subject only to Section
5.03), paid-up, royalty-free, world-wide license to use, modify and create
derivative works from any of the derivative works created by BridgePoint under
the other licenses set forth in this Section 5.05.
-5-
<PAGE> 6
ARTICLE VI
BANKRUPTCY PROVISIONS
6.01 All licenses and other rights granted under or pursuant to this
Agreement by Ross, Fujitsu or BridgePoint are, and shall otherwise be deemed to
be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, or replacement
provisions thereof (the "CODE"), licenses of rights to "intellectual property"
as defined under Section 101 of the Code. Ross, Fujitsu and BridgePoint agree
that the licensee or holder of such rights under this Agreement shall retain and
may fully exercise all of its rights and elections under the Code. Ross, Fujitsu
and BridgePoint further agree that, in the event of the commencement of a
bankruptcy proceeding by or against any such party under the Code, the other
party shall be entitled to a complete duplicate of (or complete access to, as
appropriate) all embodiments of such intellectual property, and the same, if not
already in its possession, shall be promptly delivered to such other party upon
its written request, which shall be in addition to all other rights under this
Agreement, provided that such intellectual property shall be used by such party
only for the purposes otherwise contemplated by this Agreement.
ARTICLE VII
REPRESENTATIONS AND WARRANTIES
7.01 Each party hereto represents and warrants that (i) it has the full
power and authority to enter into this Agreement and to perform its obligations
as contemplated hereby, (ii) neither the execution and delivery, nor the
performance of this Agreement is or will violate, conflict with or constitute a
default under any agreement to which such party is a party or by which it or any
of its property is bound, and (iii) upon execution and delivery, this Agreement
will constitute the valid and binding obligation of such party, enforceable
against such party in accordance with its terms, except as may be limited by
applicable bankruptcy, insolvency or similar laws affecting the enforcement of
creditor's rights generally and subject to general principles of equity
(regardless of whether reinforcement is considered in a proceeding at law or at
equity).
7.02 Ross hereby represents and warrants to BridgePoint that the
transfers and licenses granted to BridgePoint pursuant to Articles II and V
herein, the uses of the Intellectual Property contemplated hereby and
BridgePoint's sale and manufacture of the Transferred Products under this
Agreement do not, and will continue not to, infringe, or constitute an
infringement or misappropriation of, the Intellectual Property rights of any
third party (subject to the exceptions set forth in the Purchase Agreement).
Fujitsu hereby represents and warrants to BridgePoint that (i) each
representation and warranty made by Fujitsu in the Wafer Agreement, to the
extent such representation or warranty applies to the Intellectual Property
licensed to BridgePoint pursuant to Article III hereof, is true and correct as
of the date hereof, and (ii) as of the date hereof, Fujitsu has not received
notice from any third party of any infringement of any patent, copyright or
other proprietary rights of a third party in connection with any Intellectual
Property to be provided by Fujitsu to BridgePoint under the Surviving
Agreements, except for notice of a letter, dated January 23, 1998, from the law
offices of Gerald D. Hosier to Ross which alleged, among other things, that
Ross' operation of the Business infringes on certain issued patents and pending
patent applications filed by Jerome Lemelson, which are owned by the Lemelson
Medical, Education & Research Foundation Limited Partnership, and Fujitsu agrees
to promptly inform BridgePoint if Fujitsu receives written notice of any such
infringement.
-6-
<PAGE> 7
7.03 THE WARRANTIES AND REPRESENTATIONS SET FORTH IN THIS AGREEMENT ARE
IN LIEU OF ANY AND ALL OTHER WARRANTIES, CONDITIONS, OR REPRESENTATIONS
(EXPRESS, STATUTORY OR IMPLIED, ORAL OR WRITTEN), WITH RESPECT TO THE LICENSED
PRODUCTS OR LICENSED INTELLECTUAL PROPERTY, INCLUDING ANY IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE; PROVIDED, HOWEVER, THAT
NOTHING IN THIS AGREEMENT SHALL OPERATE TO WAIVE, NULLIFY OR MODIFY THE
OBLIGATIONS SET FORTH IN THE ASSET PURCHASE AGREEMENT BETWEEN ROSS AND
BRIDGEPOINT.
7.04 Except as set forth on Schedule 3.1(i) to the Purchase Agreement,
all licenses of Intellectual Property of Ross are, to the actual knowledge of
Ross (including the actual knowledge of Ross' officers, directors and executive
officers, after due inquiry of their direct subordinates and Dick Hartin, Jim
McGuire and Trevor Smith), valid and uncontested, and Ross has received no
notice of infringements or unlawful use of such Intellectual Property in
connection with the operations of the Business. Notwithstanding any other
provision of this Agreement, BridgePoint's sole and exclusive remedy against
Ross from and after the closing of the Purchase Agreement for any breach by Ross
of any representation, warranty or covenant contained in this Agreement shall be
indemnification by Ross pursuant to Section 8.1 of the Purchase Agreement,
including the limitations contained in the Purchase Agreement.
ARTICLE VIII
CONTINUING TRANSFER OF ROSS TRADE SECRETS;
OWNERSHIP OF BRIDGEPOINT IMPROVEMENTS
8.01 After the Effective Date, and during the term hereof, and as
promptly as practicable after BridgePoint's request therefor, Ross shall use
reasonable continued efforts, consistent with its resources and circumstances,
to make available to BridgePoint such of the Ross Trade Secrets as may as yet
not been made available to BridgePoint by Ross. The Ross Trade Secrets shall be
furnished in such detail as is reasonably necessary or commercially advantageous
for BridgePoint's purposes.
8.02 BridgePoint shall retain all right, title and interest in and to
the BridgePoint Improvements, and may use or transfer such improvements in any
manner it deems fit.
8.03 If at any time BridgePoint believes, or Fujitsu or Ross brings to
the attention of BridgePoint, that any Intellectual Property developed or owned
by Ross (or licensed or provided by Fujitsu to Ross) prior to the Effective Date
is required to allow BridgePoint to manufacture, sell, distribute, market,
repair, maintain, import and export the Transferred Products in the manner in
which the Business has been operated by Ross prior to the Effective Date, then
Fujitsu agrees to discuss in good faith with BridgePoint the provision by
Fujitsu to BridgePoint of such necessary Intellectual Property, but without
obligation to reach an agreement.
-7-
<PAGE> 8
ARTICLE IX
MISCELLANEOUS
9.01 After the Effective Date, each party to this Agreement, upon
another party's reasonable request from time to time, shall take such further
actions and execute and deliver such further documents as may be necessary to
effectuate the transactions contemplated by this Agreement.
9.02 Each party to this Agreement shall consult with the other parties
regarding the wording and substance of all press releases, announcements or
other public statements to be made by such party with respect to this Agreement
and the transactions contemplated hereby. The parties further agree to use good
faith to comply with the reasonable requests of the other parties relating to
any such press release, announcement or public statement.
9.03 All discussions relating to this Agreement are confidential
information and are to be disclosed only to employees, representatives or
consultants of a party to this Agreement who have a need to know; provided,
however, that "confidential information" shall not include any information which
(i) at the time of disclosure, is available to the general public; or (ii) at a
later date, becomes available to the general public through no fault of the
receiving party and then only after such later date; or (iii) the receiving
party can demonstrate was known to it prior to disclosure to it by the
disclosing party. No party to this Agreement will disclose to third parties any
other party's confidential information, except to the extent specified in the
prior written consent of such other party or necessary to comply with applicable
law, the order of any court or the order or regulations of any governmental
agency; provided that such party will promptly inform the other such party of
such obligation to disclose and cooperate with such other party in minimizing
the disclosure, including seeking a protective order.
9.04 Any dispute, controversy or claim arising out of or relating to
this Agreement or the subject matter hereof, or the interpretation,
enforceability, validity, performance, breach or termination hereof or thereof,
including, without limitation, this arbitration clause, shall be solely and
finally settled by arbitration in Los Angeles, California, in accordance with
the commercial arbitration rules of the American Arbitration Association, as
modified by the provisions of this Section 9.04. Each party to this Agreement
waives any rights to bring any such dispute, controversy or claim in any other
forum or proceeding, including, without limitation, the International Trade
Commission of the United States or any other administrative or judicial forum.
The arbitration shall be conducted in accordance with such rules by three
arbitrators selected by the parties (if the parties are able to agree within
thirty (30) days) and otherwise selected in accordance with such rules. Each of
the arbitrators appointed shall have at least five (5) years' experience in the
field that is the principal subject matter of the dispute. After soliciting the
views of the parties, the arbitrators shall order such discovery as they may
deem reasonable for a full and fair understanding of the facts and issues raised
in the arbitration. The arbitration, including the proceeding, pleadings and
evidence in connection therewith, shall be maintained as confidential. An award
rendered in connection with the arbitration shall be final and binding on the
parties, and any judgment upon such an award may be entered in any court of
competent jurisdiction. The award shall be in writing and shall provide written
reasons in detail on the award unless the parties agree otherwise. The award
shall also provide for the fees and expenses of the arbitrators and for the
reasonable attorneys' fees and expenses of the prevailing party, as determined
by the arbitrators, all to be borne by the non-prevailing party.
-8-
<PAGE> 9
9.05 This Agreement may not be amended except by an instrument in
writing signed by the parties hereto.
9.06 Any failure of BridgePoint, Ross or Fujitsu to comply with any
obligation, covenant, agreement, or condition contained herein may be waived
only if set forth in an instrument in writing signed by the party or parties to
be bound thereby, but such waiver or failure to insist upon strict compliance
with such obligation, covenant, agreement or condition shall not operate as a
waiver of, or estoppel with respect to, any other failure.
9.07 The parties recognize that in the event any party should refuse to
perform under the provisions of this Agreement, monetary damages alone will not
be adequate. Each party shall therefore be entitled, in addition to any other
remedies which may be available, including money damages, to obtain specific
performance of the terms of this Agreement. In the event of any action to
enforce this Agreement specifically, each party hereby waives the defense that
there is an adequate remedy at law.
9.08 If any term or other provision of this Agreement is invalid,
illegal, or incapable of being enforced by any rule of applicable law, or public
policy, all other conditions and provisions of this Agreement shall nevertheless
remain in full force and effect. Upon such determination that any term or other
provision is invalid, illegal, or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in a mutually
acceptable manner in order that the transactions contemplated herein are
consummated as originally contemplated to the fullest extent possible.
9.09 This Agreement shall be binding upon and, except as provided
below, inure solely to the benefit of each party hereto and their successors and
assigns, and nothing in this Agreement, except as set forth below, express or
implied, is intended to confer upon any other person any rights or remedies of
any nature whatsoever under or by reason of this Agreement.
9.10 All notices and other communications hereunder shall be in writing
and shall be deemed given if delivered personally or mailed by registered or
certified mail (return receipt requested) to the parties at the following
addresses (or at such other address for a party as shall be specified by like
notice):
If to BridgePoint, to:
BridgePoint Technical Manufacturing Corporation
4007 Commercial Center Drive
Austin, Texas 78744
Attn: Joe David Jones
Telephone: (512) 436-2501
Facsimile: (512) 434-4750
-9-
<PAGE> 10
with a copy to:
Vinson & Elkins L.L.P.
One American Center
600 Congress Avenue
Suite 2700
Austin, Texas 78701-3200
Attn: Kyle K. Fox, Esq.
Telephone: (512) 495-8539
Facsimile: (512) 236-3340
If to Ross, to:
ROSS Technology, Inc.
5316 Highway 290 West
Austin, Texas 78735
Attn: Francis S. ("Kit") Webster III
Telephone: (512) 436-2578
Facsimile: (512) 892-3402
with a copy to:
Irell & Manella LLP
1800 Avenue of the Stars
Suite 900
Los Angeles, California 90067-4276
Attn: Andrew W. Gross, Esq.
Telephone: (310) 203-7032
Facsimile: (310) 203-7199
If to Fujitsu, to:
Fujitsu Limited
1-1, Kamikodanaka, 4-chome
Nakahara-ku, Kawasaki-shi
Kanagawa-ken, 211-88 Japan
Attn: Yoshiyuki Suehiro
Telephone: 011-81-044-754-2572
Facsimile: 011-81-044-754-3786
-10-
<PAGE> 11
with a copy to:
Morrison & Foerster LLP
AIG Building, 7th Floor
1-1-3 Marunouchi, Chiyoda-Ku
Tokyo 100, Japan
Attn: Ken Siegel
Telephone: 011-81-3-3214-6522
Facsimile: 011-81-3-3214-6512
All notices, requests or instructions given in accordance herewith
shall be deemed given on the date of delivery, if hand delivered, on the date of
receipt, if telecopied, three business days after the date of mailing, if mailed
by registered or certified mail, return receipt requested, and three business
days after the date of sending, if sent by Federal Express or other recognized
overnight courier.
9.11 This Agreement may be executed and delivered (including by
facsimile transmission) in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to the
other parties, it being understood that all parties need not sign the same
counterpart.
9.12 This Agreement (which term shall be deemed to include the exhibits
and schedules hereto and the other certificates, documents and instruments
delivered hereunder) constitutes the entire agreement of the parties hereto with
respect to the subject matter specifically addressed herein and supersedes all
prior agreements, letters of intent and understandings, both written and oral,
among the parties with respect to the subject matter specifically addressed
herein; provided, however, that nothing herein shall serve to negate or modify
the Purchase Agreement between Ross and BridgePoint.
9.13 BridgePoint understands that Ross has entered into a Termination
and License Agreement with ROSS Semiconductor (Israel) Ltd. BridgePoint has been
allowed to review Sections 1(d) and 1(e) of such agreement (and the related
definitions) and BridgePoint agrees that the licenses and retention of
technology specifically set forth in such sections do not constitute a breach of
any of the provisions of this Agreement.
9.14 THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF TEXAS.
9.15 Neither this Agreement nor any of the rights, interests, or
obligations hereunder shall be assigned by any of the parties hereto, whether by
operation of law or otherwise, without the express written consent of the other
parties (to the extent still in existence), except BridgePoint may assign this
Agreement to the successor or assignee of all, or substantially all, of
BridgePoint's business and assets relating to the Transferred Products. When so
assigned, this Agreement shall be binding upon and inure to the benefit of the
assignee in question.
[Remainder of page intentionally left blank]
-11-
<PAGE> 12
IN WITNESS WHEREOF, this Agreement has been executed by the undersigned
as of the Effective Date.
FUJITSU LIMITED
By: /s/ YOSHIRO YOSHIOKA
-----------------------------------
Name: Yoshiro Yoshioka
-----------------------------------
Title: Senior Vice President
-----------------------------------
ROSS TECHNOLOGY, INC.
By: /s/ FRANCIS S. WEBSTER III
-----------------------------------
Name: Francis S. Webster III
-----------------------------------
Title: Chief Financial Officer
-----------------------------------
BRIDGEPOINT TECHNICAL MANUFACTURING
CORPORATION
By: /s/ JOE D. JONES
-----------------------------------
Name: Joe D. Jones
-----------------------------------
Title: President, Bridgepoint
-----------------------------------
<PAGE> 13
EXHIBIT A
SURVIVING AGREEMENTS
1. Non-Disclosure Agreement executed July 1, 1993 between Fujitsu and Ross.
2. Contractor Design Agreement dated July 15, 1995 between Puyallup Integrated
Circuit Company, Inc., Ross and Fujitsu.
3. CM50A + SRAM Cell License Agreement dated as of September 30, 1996 between
Fujitsu and Ross.
A-1
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-29-1999
<PERIOD-START> MAR-31-1998
<PERIOD-END> SEP-28-1998
<CASH> 7,048
<SECURITIES> 0
<RECEIVABLES> 2,275
<ALLOWANCES> 0
<INVENTORY> 1,930
<CURRENT-ASSETS> 11,255
<PP&E> 696
<DEPRECIATION> 0
<TOTAL-ASSETS> 11,951
<CURRENT-LIABILITIES> 30,390
<BONDS> 0
0
1
<COMMON> 23
<OTHER-SE> (18,462)
<TOTAL-LIABILITY-AND-EQUITY> 11,951
<SALES> 12,229
<TOTAL-REVENUES> 12,229
<CGS> 10,992
<TOTAL-COSTS> 10,992
<OTHER-EXPENSES> 10,088
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 608
<INCOME-PRETAX> (9,459)
<INCOME-TAX> 0
<INCOME-CONTINUING> (9,459)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,459)
<EPS-PRIMARY> (.40)
<EPS-DILUTED> (.40)
</TABLE>
