NEOMAGIC CORP
EXHIBIT 10.22
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<TYPE>EX-10.22
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<DESCRIPTION>EXHIBIT 10.22
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="kj2154_exhibit_10.22"> </A>
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<BR></FONT><FONT SIZE=2><B>EXHIBIT 10.22    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Full and Final Release</B></FONT><FONT SIZE=2> between NeoMagic International Corporation, a Cayman Island company, with offices c/o Caledonian Bank &amp; Trust Ltd.,
Ground Floor, Caledonian House, Mary Street, P.O. Box 1043, Georgetown, Grand Cayman B.W. I. (hereinafter referred to as "</FONT><FONT SIZE=2><B>NeoMagic</B></FONT><FONT SIZE=2>") and Infineon
Technologies AG, St. Martin Str. 53, 81669 Munich, Germany (hereinafter referred to as "</FONT><FONT SIZE=2><B>Infineon</B></FONT><FONT SIZE=2>") (hereinafter each individually referred to as a
"</FONT><FONT SIZE=2><B>Party</B></FONT><FONT SIZE=2>" and collectively referred to as the "</FONT><FONT SIZE=2><B>Parties</B></FONT><FONT SIZE=2>") dated as of September 9, 2002. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, NeoMagic and Infineon have entered into the Wafer Supply Agreement as of March, 15, 1999 ("</FONT><FONT SIZE=2><B>Wafer Supply
Agreement</B></FONT><FONT SIZE=2>"), according to which Infineon designs and manufactures processed wafers for NeoMagic; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, the Parties have amended the Wafer Supply Agreement by the General Amendment to the Wafer Supply Agreement as of January, 17,
2001 to provide for the design, fabrication and supply of future products (hereinafter "</FONT><FONT SIZE=2><B>Amendment</B></FONT><FONT SIZE=2>"); </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, NeoMagic and Infineon have entered into the Product Sourcing Agreement as of January, 17, 2001 (hereinafter "Product Sourcing
Agreement"), according to which Infineon agreed to make investments in her manufacturing site in Dresden to enlarge her capacity of wafer supply and NeoMagic agreed to establish an irrevocable Standby
Letter of Credit with the Bank of America in the name of Infineon Technologies AG, Munich, in the amount of US $15,000,000 (in words: fifteen million US dollars). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, under the Product Sourcing Agreement, the Parties agreed to reduce the amount of the irrevocable Standby Letter of Credit
quarterly by US $300 for every processed wafer actually delivered to and paid by NeoMagic to Infineon; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, the Parties agreed that Infineon on February, 27, 2004 should be entitled to draw on the outstanding sum of the irrevocable
Standby Letter of Credit; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, the Parties entered into the First Amendment to the Product Sourcing Agreement ("</FONT><FONT SIZE=2><B>First
Amendment</B></FONT><FONT SIZE=2>"), according to which Infineon agreed that if NeoMagic were to replace the existing letter of credit with a new letter of credit not to draw under the existing letter
of credit provided the new letter of credit contained the same terms and conditions of the existing letter of credit and issued by a bank acceptable to Infineon; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, NeoMagic has not ordered a single processed wafer so that the full sum of US $15,000,000 is still outstanding in the irrevocable
Standby Letter of Credit; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, NeoMagic and Infineon wish to terminate the Wafer Supply Agreement Agreement, the Amendment, the Product Sourcing Agreement and
the First Amendment (all four agreements hereinafter called "</FONT><FONT SIZE=2><B>the Four Agreements</B></FONT><FONT SIZE=2>") and to finally settle all differences between the Parties arising out
of or in connection therewith; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>AND WHEREAS</B></FONT><FONT SIZE=2>, Infineon and NeoMagic have agreed to enter into this full and final Release (hereinafter, the
"</FONT><FONT SIZE=2><B>Release</B></FONT><FONT SIZE=2>") in order to release one another and their respective affiliates from all claims and obligations (except for those expressly set forth in this
Release) that they may have against one another under the Four Agreements. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>NOW THEREFORE</B></FONT><FONT SIZE=2>, in consideration of the premises, obligations and covenants contained herein, the receipt and sufficiency of which are
hereby acknowledged, Infineon and NeoMagic agree as follows: </FONT></P>

<P><FONT SIZE=2>1.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Termination of Agreements.</I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;The
Four Agreements are hereby terminated. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Notwithstanding
anything to the contrary contained herein, the parties agree that Section 2.2, Part V, Part VI, Section 7.1 and 7.6 of the Wafer Supply Agreement and
Section 5 and 6 of the Product Sourcing Agreement shall survive termination of the Four Agreements. </FONT></P>

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<P><FONT SIZE=2>2.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Full Release.&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2>Subject to Section 8 of this Release, each Party releases and forever discharges the other Party, its
respective directors, officers, employees, affiliates, subsidiaries and related companies and its successors and assigns, from any and all obligations, actions, causes of action, claims and demands
for, upon or by reason of any amount owing, damage or loss whatsoever, existing up to and including the date hereof, which a Party or its agents, affiliates, successors or assigns or any of them ever
had, now have or hereafter may, can or shall have pursuant to or relating to the Four Agreements and any other agreement, correspondence, document or other communication (whether written or oral)
exchanged by or between the Parties about the Four Agreements (collectively, the "</FONT><FONT SIZE=2><B>Additional Documents</B></FONT><FONT SIZE=2>"). </FONT></P>

<P><FONT SIZE=2>3.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Covenants, Representations and Warranties.&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2>Each party hereby specifically covenants, represents and warrants to the other
Party that, except as specified in Sections 4 and 8 of this Release, it has no further claims against the other Party for or arising out of the Four Agreements or the Additional Documents. In the
event that a Party should hereafter make any claim or demand or commence, or threaten to commence any action, claim or proceeding, or make any complaint against the other Party arising out of or in
relation to the Four Agreements or the Additional Documents, or otherwise as specified in Section 2 of this Release, this Release may be raised as an estoppel and complete bar to any such claim,
demand, action, proceeding or complaint. </FONT></P>

<P><FONT SIZE=2>4.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Additional Obligations of the Parties:</I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Consideration.
</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;NeoMagic
shall pay to Infineon the amount US $1,500,000 (in words: one million and five hundred thousand US dollars). Payment shall be due on the effective date of this
Release and payable to Infineon on September 27, 2002. Payment shall be made by NeoMagic to the following bank account of Infineon: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>Infineon
Technologies AG<BR>
Bank of America, Branch London<BR>
Account Number: 31481013<BR>
SWIFT Address BOFA GB 22 </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;NeoMagic
shall issue to Infineon One Million Six Hundred and Sixty-Seven (1,667,000) shares of its Common Stock, par value .001 per share (the
"</FONT><FONT SIZE=2><B>Shares</B></FONT><FONT SIZE=2>"). The Shares shall be issued on the effective date of this Release and delivered to Infineon on September 27, 2002 (the
"</FONT><FONT SIZE=2><B>Delivery Date</B></FONT><FONT SIZE=2>"), pursuant to written instructions to be provided by Infineon to NeoMagic prior to the Delivery Date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;The
Shares shall be issued in a private placement exempt from registration under the Securities Act of 1933 (the "</FONT><FONT SIZE=2><B>Securities
Act</B></FONT><FONT SIZE=2>"). Infineon acknowledges that it has substantial experience in evaluating and investing in private placement transactions so that it is capable of evaluating the merits and
risks of its investment in NeoMagic and has the capacity to protect its own interests. Infineon is acquiring the Shares for its own account for investment only, and not with a view towards their
distribution. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Registration Rights.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;As
soon as practicable following the date hereof, NeoMagic shall file with the U.S. Securities and Exchange Commission (the
"</FONT><FONT SIZE=2><B>Commission</B></FONT><FONT SIZE=2>") a "shelf" registration statement under the Securities Act providing for the registration of, and the sale on a continuous or delayed basis
by Infineon of, all of the Shares pursuant to Rule 415 under the Securities Act and/or any similar rule that may be adopted by Commission (such registration statement, including the prospectus
contained therein (the "</FONT><FONT SIZE=2><B>Prospectus</B></FONT><FONT SIZE=2>") and any amendments and supplements to such registration statement, including post-effective amendments, and all
exhibits and all material incorporated by </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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reference in such registration statement are referred to herein as the "</FONT><FONT SIZE=2><B>Shelf Registration Statement</B></FONT><FONT SIZE=2>") relating to the offer and sale of the Shares by
Infineon from time to time in accordance with the methods of distribution elected by Infineon and set forth in such Shelf Registration Statement and shall use its best efforts to cause such Shelf
Registration Statement to be declared effective within 90 days of the date hereof but in no event later than March 15, 2003 (the "</FONT><FONT SIZE=2><B>Release Date</B></FONT><FONT SIZE=2>") and if
earlier, as soon as practicable following a Special Release Event (as defined below). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;NeoMagic
shall use its best efforts to keep the Shelf Registration Statement continuously effective in order to permit the Prospectus to be usable by Infineon until the
earliest of (1) the sale of all Shares registered under the Shelf Registration Statement; and (2) the expiration of the period referred to in Rule 144(d) of the Securities Act with respect to all
Shares (such period being referred to herein as the "</FONT><FONT SIZE=2><B>Effectiveness Period</B></FONT><FONT SIZE=2>"). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;NeoMagic
may suspend the use of the Prospectus for a period not to exceed 30 days, whether or not consecutive, in any 12-month period if the Board of Directors of
NeoMagic shall have determined in good faith that because of valid business reasons (not including avoidance of NeoMagic's obligations hereunder), including the acquisition or divestiture of assets,
pending corporate developments and similar events, it is in the best interests of NeoMagic to suspend such use, and prior to suspending such use NeoMagic provides Infineon with written notice of such
suspension, which notice need not specify the nature of the event giving rise to such suspension. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Registration Procedures.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Shelf Registration Statement, the following provisions shall
apply: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;NeoMagic
shall furnish to Infineon, prior to the effective date of the Shelf Registration Statement (the "</FONT><FONT SIZE=2><B>Effective
Time</B></FONT><FONT SIZE=2>"), a copy of the Shelf Registration Statement initially filed with the Commission, and shall furnish to Infineon, prior to the filing thereof with the Commission, copies
of each amendment thereto (including post-effective amendments) and each amendment or supplement, if any, to the Prospectus included therein, and shall use its best efforts to reflect in each such
document, at the Effective Time or when so filed with the Commission, as the case may be, such comments as Infineon and its counsel reasonably may propose. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;NeoMagic
shall promptly take such action as may be necessary so that (i) each of the Shelf Registration Statement and any amendment thereto and the Prospectus forming a
part thereof and any amendment or supplement thereto (and each report or other document incorporated therein by reference in each case) complies in all material respects with the Securities Act and
the Securities Exchange Act of 1934 and the respective rules and regulations thereunder, (ii) each of the Shelf Registration Statement and any amendment thereto does not, when it becomes effective,
contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading and (iii) each of the
Prospectus forming a part of the Shelf Registration Statement, and any amendment or supplement to such Prospectus, does not at any time during the Effectiveness Period include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein not misleading in light of the circumstances then existing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;NeoMagic
shall promptly advise Infineon and shall confirm such advice in writing if so requested by any such Infineon: (i) when a Shelf Registration Statement and any
amendment thereto has been filed with the Commission and when a Shelf Registration Statement or any post-effective amendment thereto has become effective; (ii) of any request by the Commission for
amendments or supplements to the Shelf Registration Statement or the Prospectus included therein or for additional information; (iii) of the issuance by the Commission of any stop order suspending the
effectiveness of the Shelf Registration Statement or the initiation of any proceedings for such purpose; (iv) of the receipt by NeoMagic of any notification with respect to </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>
the suspension of the qualification of the securities included in the Shelf Registration Statement for sale in any jurisdiction or the initiation of any proceeding for such purpose; and (v) of the
happening of any event or the existence of any state of facts that requires the making of any changes in the Shelf Registration Statement or the Prospectus included therein so that, as of such date,
such Shelf Registration Statement and Prospectus do not contain an untrue statement of a material fact and do not omit to state a material fact required to be stated therein or necessary to make the
statements therein (in the case of the Prospectus, in light of the circumstances then existing) not misleading (which advice shall be accompanied by an instruction to Infineon to suspend the use of
the Prospectus until the requisite changes have been made). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;NeoMagic
shall use its best efforts to prevent the issuance, and if issued to obtain the withdrawal at the earliest possible time, of any order suspending the
effectiveness of the Shelf Registration Statement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;Prior
to any offering of Shares pursuant to the Shelf Registration Statement, NeoMagic shall (i) register or qualify or cooperate with Infineon and its counsel in
connection with the registration or qualification of such Shares for offer and sale under the securities or "blue sky" laws of such jurisdictions within the United States as Infineon may reasonably
request, (ii) keep such registrations or qualifications in effect and comply with such laws so as to permit the continuance of offers and sales in such jurisdictions for so long as may be necessary to
enable Infineon to complete its distribution of Shares pursuant to the Shelf Registration Statement, and (iii) take any and all other actions necessary or advisable to enable the disposition in such
jurisdictions of such Shares; </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>, </FONT><FONT SIZE=2><I>however</I></FONT><FONT SIZE=2>, that in no event shall NeoMagic be obligated to (A)
qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to so qualify but for this provision or (B) file any general consent to
service of process in any jurisdiction where it is not as of the date hereof so subject. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;NeoMagic
will use its best efforts to cause the Shares to be listed for quotation on the Nasdaq National Market System prior to the Effective Time of the Shelf
Registration Statement hereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;NeoMagic
shall use its best efforts to take all other steps necessary to effect the registration, offering and sale of the Shares covered by the Shelf Registration
Statement contemplated hereby. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Registration Expenses.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;NeoMagic shall bear all fees and expenses incurred in connection with the performance
of its obligations under this Section 4 and shall bear or reimburse Infineon for the reasonable fees and disbursements of Infineon's counsel in connection therewith. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Liquidated Damages for Failure to Register.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If
the Shelf Registration Statement has not been filed within 30 days of the date hereof or declared effective by the Commission (each such event, or the events
described herein, as applicable, a "</FONT><FONT SIZE=2><B>Registration Default</B></FONT><FONT SIZE=2>") on or prior to the dates required in Section 4(b)(i), NeoMagic shall be required to pay
liquidated damages ("</FONT><FONT SIZE=2><B>Liquidated Damages</B></FONT><FONT SIZE=2>"), from and including the day following the Registration Default until such Shelf Registration Statement is
declared effective, at a rate per annum equal to one-half of one percent (0.5%) of the market value of the Shares as of the Release Date (the "</FONT><FONT SIZE=2><B>Share
Value</B></FONT><FONT SIZE=2>"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;In
the event that the Shelf Registration Statement ceases to be effective (or Infineon is otherwise prevented or restricted by NeoMagic from effecting sales pursuant
thereto) (an "</FONT><FONT SIZE=2><B>Effective Failure</B></FONT><FONT SIZE=2>") for more than 30 days, whether or not consecutive, during any 12-month period, then NeoMagic shall pay Liquidated
Damages at a rate per annum equal to one-half of one percent (0.5%) of the Share Value from the 31st day that such Shelf Registration Statement ceases to be effective (or Infineon is otherwise
prevented or restricted by NeoMagic from effecting </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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sales pursuant thereto) until the earlier of (i) the time the Shelf Registration Statement again becomes effective or Infineon is again able to make sales under the Shelf Registration Statement or
(ii) the time the Effectiveness Period expires. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;In
the event NeoMagic fails to file a post-effective amendment to the Shelf Registration Statement, or the post-effective amendment is not declared effective, within
the periods required hereunder, NeoMagic shall pay Liquidated Damages at a rate per annum equal to an additional one-half of one percent (0.5%) of the Share Value from and including the date of such
Registration Default until such time as such Registration Default is cured. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;Any
amounts to be paid as Liquidated Damages pursuant to paragraphs (a), (b) or (c) above shall be paid quarterly in arrears, with the first quarterly payment due on
the last day of the first calendar quarter in which a Registration Default occurs. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;The
parties hereto agree that the Liquidated Damages as set forth above are necessary because of the difficulty or impossibility of determining actual damages and that
such Liquidated Damages in no event shall be deemed a penalty. </FONT></P>

</UL>

<P><FONT SIZE=2>5.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Lock-Up Agreement.</I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Infineon
agrees that it shall not sell, offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or effect any
hedging or other transaction which is designed to result in any of the above transactions (each, a "</FONT><FONT SIZE=2><B>Sale</B></FONT><FONT SIZE=2>") any Shares prior to the Release Date; </FONT> <FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2>
that Infineon may, prior to the Release Date, (i) engage in private resales of such Shares not effected through the Nasdaq National Market and
(ii) transfer the Shares to a subsidiary, parent, general partner, limited partner, or other affiliate of Infineon, </FONT><FONT SIZE=2><I>provided</I></FONT><FONT SIZE=2> in each of clauses (i) and
(ii) that such transferee agrees to be bound to the remaining standoff period described in this Section 5. Nothwithstanding the foregoing, this covenant shall expire and Infineon shall be permitted to
sell, transfer or otherwise dispose of the Shares in the event of a Special Release Event. A "</FONT><FONT SIZE=2><B>Special Release Event</B></FONT><FONT SIZE=2>" shall mean the announcement by
NeoMagic of any consolidation or merger of NeoMagic with or into any other corporation or other entity or person, or any other corporate reorganization, other than any such transaction following which
the stockholders of NeoMagic immediately prior to such consolidation, merger or reorganization, retain, by virtue of their equity interest in NeoMagic, at least fifty percent (50%) of the voting power
of the surviving corporation immediately after such consolidation, merger or reorganization, or any transaction or series of related transactions to which NeoMagic is a party in which in excess of
fifty percent (50%) of NeoMagic's voting power is transferred or a sale, lease or other disposition of all or substantially all of the assets of NeoMagic. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Notwithstanding
the above, except as provided in subsections 5(a)(i) and 5(a)(ii) above, Infineon agrees that, during any three (3) month period, it shall not effect any
Sale of any Shares in excess of the greater of (i) 250,000 Shares (as adjusted for any stock splits, combinations, stock dividends or
similar transactions) and (ii) that number of Shares equal to one-tenth of the aggregate volume of trading in shares of NeoMagic common stock reported through the automated quotation system of the
Nasdaq National Market and/or all national securities exchanges during the three (3) month period ending on the date immediately prior to such Sale. This covenant shall expire as of the date that
Infineon has transferred or otherwise disposed of all of the Shares. </FONT></P>

<P><FONT SIZE=2>6.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Consent to eliminate the Standby Letter of Credit.&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2>Infineon agrees to give its written consent to the Bank of America that
NeoMagic may eliminate the irrevocable Standby Letter of Credit as soon as Infineon has received full payment of the US $1,500,000 and 1,667,000 shares of Neo Magic's common stock as further specified
in Section 4(a). </FONT></P>

<P><FONT SIZE=2>7.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Return of Information.&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2>The receiving party shall promptly return to the disclosing party all confidential information
received under the Agreements, including any copies thereof in its possession, within forty-five (45) days after termination. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2>8.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Continuing Obligations.&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2>Notwithstanding anything to the contrary in this Release, nothing in this Release shall release the
Parties from their respective obligations, nor detract from their respective rights, as described in Section 4 and 1.2 of this Release. Each Party acknowledges and agrees that the terms of this
Release apply only to the Four Agreements and Additional Documents and not to any other agreements between the Parties, currently in effect or that may be entered into between the Parties in the
future, that is not related to this Release. </FONT></P>

<P><FONT SIZE=2>9.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Confidentiality.&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2>This Release is a confidential document. Each Party agrees to keep this Release and its contents
confidential and shall only disclose such information (i) to its agents, employees or representatives who have a need to know such information, for the purpose of performance under this Release and
exercising the rights granted under this Release and who have entered into a non-disclosure agreement at least as protective of the confidential nature of the Release as are these terms, and they
shall keep this information confidential to third parties with the same degree of care as they use with respect to their own confidential information. This obligation shall not apply to information,
which is or becomes public knowledge or which is independently developed or lawfully received from a third party or (ii) to the extent required by applicable law or during the course of or in
connection with any litigation, arbitration or other proceeding based upon or in connection with the subject matter of this Release. </FONT></P>

<P><FONT SIZE=2>10.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Dispute Resolution.&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2>All disputes arising out of or in connection with this Release, including any question regarding the
existence, validity or termination of this Release, shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce, Paris (hereinafter, the
"</FONT><FONT SIZE=2><B>Rules</B></FONT><FONT SIZE=2>") by three arbitrators in accordance with said Rules. The seat of arbitration shall be Zuerich, Switzerland. The procedural law of Switzerland
shall apply where the Rules are silent. The language to be used in the arbitration proceeding shall be English. </FONT></P>

<P><FONT SIZE=2>11.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Applicable Law.&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2>This Release shall be governed by and construed in accordance with the law in Switzerland without
reference to its conflict of law provisions. The application of the United Nations Convention on Contracts for the International Sale of Goods of April 11, 1980 shall be excluded. </FONT></P>

<P><FONT SIZE=2>12.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Miscellaneous.</I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Modification.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Release, including this Section 13.a, cannot be modified except by written instrument
signed by the Parties. This requirement of written form can only be waived in writing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Severability.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If any provision contained in this Release is or becomes ineffective or is held to be invalid
by a competent authority or court having final jurisdiction thereover, all other provisions of this Release shall remain in full force and effect and there shall be substituted for the said invalid
provision a valid provision having an economic effect as similar as possible to the original provision. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Release constitutes the entire understanding and agreement between the Parties hereto
with respect to the subject matter hereof and shall supersede and cancel all previous agreements, negotiations and commitments, either oral or written, relating hereto. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Governing Language.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The governing language of this Release shall be English. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Counterparts.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Release may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. </FONT></P>

<P><FONT SIZE=2>13.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Acknowledgment.&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2>NeoMagic and Infineon each understands and agrees that the terms of this Release are fully understood by
it, that the consideration stated herein, the receipt and sufficiency of which are hereby acknowledged, is full consideration of this Release and that the said consideration is accepted voluntarily
for the purpose of making full and final compromise, adjustment and settlement of all claims for amounts owing, interest costs incurred, and losses and damages resulting, or to result, from the Four
Agreements and Additional Documents, or otherwise as described in Section 2 of this Release. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>[Signature
Page to Follow] </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>IN WITNESS WHEREOF</B></FONT><FONT SIZE=2>, the Parties hereto have caused this Release to be executed in duplicate by their respective duly authorized
representatives as of the date set forth above: </FONT></P>

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<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2><B>Neo Magic International Corporation</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><B>Infineon Technologies AG</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Date:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Date:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Date:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><HR NOSHADE></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<P><br><A NAME="02PAL2154_2">QuickLinks</A><br></P><!-- TOC_BEGIN -->
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<FONT SIZE=2><A HREF="#toc_kj2154_1">EXHIBIT 10.22</A></FONT><BR>
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