EXHIBIT 10.19 Term Sheet Agreement BETWEEN SEIKO INSTRUMENTS, INC. ("SII") AND SUMMIT DESIGN, INC. ("SUMMIT") AGREEMENT - PURPOSE: Through acquisition, funding and development endeavors, Summit has recently procured and created the rights to New...
EXHIBIT 10.19
Term Sheet Agreement
BETWEEN
SEIKO INSTRUMENTS, INC. ("SII") AND SUMMIT DESIGN, INC. ("SUMMIT")
AGREEMENT
- PURPOSE:
Through acquisition, funding and development endeavors, Summit has
recently procured and created the rights to New Products. When
combined with Visual HDL, these products provide a sophisticated and
complete Behavioral and RTL design environment for IC engineers.
Summit and SII desire to amend the current Summit/SII Distributor
agreement to include the New Products. Toward that end, the parties
agree to the following terms and conditions.
- NEW PRODUCTS:
I. Products from Dasys Inc.:
A. ***
B. Rapid Path Behavioral Synthesis (Scheduler and Allocator)
II. Products from Simtech:
A. Virsim
B. HDL Score
C. V-CPU
III. Combination products developed by Summit through technology
creation and integration:
A. Visual IP
B. ***
C. ***
D. ***
- LOAN AUTHORIZATION INVENTORY:
X. XXX agrees to purchase *** units of Loan Authorization
Inventory (XXX) for $***.
II. This purchase shall be made immediately upon signing of this
agreement and payment will be made on or before December 1, 1997.
III. Summit will ship up to *** copies of each product shown below
when such product is released for production. Additional Loan
Authorization Inventory and upgrade Loan Authorization
Inventory can be purchased by SII for $***. per copy with the
approval of Summit.
LAI UPGRADE
NEW PRODUCTS OR PURCHASE PRICE
*** $***
RAPID PATH $***
VIRSIM $***
HDL SCORE $***
V-CPU $***
*** $***
*** $***
*** $***
VISUAL IP $***
TOTAL PURCHASE $***
*** Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with respect
to the omitted portions.
IV. SII can loan LAI units in efforts of sales of New Products or
in conjunction with sales of each of the New Products.
V. Summit will issue Time Limited Authorization Codes immediately
upon SII written requests that are accompanied with the time
specification ***, customer name,
customer address and a customer contact.
VI. LAI units can not be sold or leased to customers.
- QUOTA & END USER SALES:
I. SII guarantees the Quarterly Product Quotas shown in appendix A.
II. Maintenance price shall be at least *** of customer purchase
price.
III. Maintenance revenue will be shared *** by Summit and *** by SII.
IV. This section of "Quota and End User sales" replaces and
supersedes any previous sections on Quotas and End User Sales.
V. In addition SII agrees to purchase *** of Advanced
Inventory of New Products in each of *** consecutive
quarters beginning in the fourth quarter of 1997. ***
A. 1998 - *** of orders in excess of Total Quota as
shown on Appendix A will be filled from Advanced
Inventory.
B. 1999 through 2003 - orders in excess of New Product
Quota will be filled *** unit from Summit then *** unit
from Advanced Inventory.
- NON COMPETITIVE PRODUCTS:
X. XXX agrees not to sell products that by reasonable comparison and
in the judgment of Summit are competitive with Summit products
without the prior written consent of Summit.
II. In the event that SII sells competitive products, then Summit may
have additional Distributors for the Summit products for which SII
products compete.
Signed
By: /s/ XXXXX X. XXXXXXX By: /s/ XXXXXXXX XXXXXXXXX
------------------------- -------------------------
Xxxxx X. Xxxxxxx Xxxxxxxx Xxxxxxxxx
President, CEO Division Manager
Summit Design, Inc. SII EDA Systems Division
*** Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with respect
to the omitted portions.
APPENDIX A (PAGE 1)
SII GUARANTEED PRODUCT QUOTA
Net to Summit in Thousands of Dollars
SUMMIT PRODUCTS 1998 1998 1998 1999 1999 1999
--------------- ---- ---- ---- ---- ---- ----
VISUAL ONLY NEW PRODUCTS TOTAL VISUAL ONLY NEW PRODUCTS TOTAL
----------------------------------------------------------------------------------------------------------------------------
Q1 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X
*** X X
*** *** X X
*** *** X X
*** $ *** $ ***
----------------------------------------------------------------------------------------------------------------------------
Q2 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X
*** X X
*** *** X X
*** *** X X
*** $ *** ***
----------------------------------------------------------------------------------------------------------------------------
Q3 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X X
*** X X X X
*** *** X X
*** *** X X
*** $ ***
----------------------------------------------------------------------------------------------------------------------------
Q4 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X X
*** X X X X
*** *** X X
*** *** X X
*** $ ***
Summit Total Annual Revenue *** *** *** *** *** ***
*** *** ***
SII Total Annual Revenue *** *** *** *** *** ***
Total End User Product Sales *** *** *** *** *** ***
*** Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with respect
to the omitted portions.
APPENDIX A (PAGE 2)
SII GUARANTEED PRODUCT QUOTA
Net to Summit in Thousands of Dollars
SUMMIT PRODUCTS 2000 2000 2000 2001 2001 2001
--------------- ---- ---- ---- ---- ---- ----
VISUAL ONLY NEW PRODUCTS TOTAL VISUAL ONLY NEW PRODUCTS TOTAL
----------------------------------------------------------------------------------------------------------------------------
Q1 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X X X
*** X X X X
*** X X X X
*** X X X X
***
----------------------------------------------------------------------------------------------------------------------------
Q2 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X X X
*** X X X X
*** X X X X
*** X X X X
***
----------------------------------------------------------------------------------------------------------------------------
Q3 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X X X
*** X X X X
*** X X X X
*** X X X X
***
----------------------------------------------------------------------------------------------------------------------------
Q4 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X X X
*** X X X X
*** X X X X
*** X X X X
***
Summit Total Annual Revenue *** *** *** *** *** ***
SII Total Annual Revenue *** *** *** *** *** ***
Total End User Product Sales *** *** *** *** *** ***
*** Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with respect
to the omitted portions.
APPENDIX A (PAGE 3)
SII GUARANTEED PRODUCT QUOTA
Net to Summit in Thousands of Dollars
SUMMIT PRODUCTS 2002 2002 2002 2003 2003 2003
--------------- ---- ---- ---- ---- ---- ----
VISUAL ONLY NEW PRODUCTS TOTAL VISUAL ONLY NEW PRODUCTS TOTAL
----------------------------------------------------------------------------------------------------------------------------
Q1 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X X X
*** X X X X
*** X X X X
*** X X X X
***
----------------------------------------------------------------------------------------------------------------------------
Q2 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X X X
*** X X X X
*** X X X X
*** X X X X
***
----------------------------------------------------------------------------------------------------------------------------
Q3 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X X X
*** X X X X
*** X X X X
*** X X X X
***
----------------------------------------------------------------------------------------------------------------------------
Q4 Guaranteed Product Quota *** *** *** *** *** ***
----------------------------------------------------------------------------------------------------------------------------
Visual HDL X X X X
Visual Simulate VHDL X X X X
Visual Simulate Verilog X X X X
T2G X X X X
Visual IP X X X X
HDL Score X X X X
V-Cpu X X X X
Virsim X X X X
Behavioral Synthesis X X X X
*** X X X X
*** X X X X
*** X X X X
*** X X X X
***
Summit Total Annual Revenue *** *** *** *** *** ***
SII Total Annual Revenue *** *** *** *** *** ***
Total End User Product Sales *** *** *** *** *** ***
*** Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with respect
to the omitted portions.
