Marvell Technology Group (MRVL)

12. Indemnifications

The Business from time to time enters into types of contracts that contingently require it to indemnify parties against third-party claims. These contracts primarily relate to (i) real estate leases, under which the Business may be required to indemnify property owners for environmental and other liabilities, and other claims arising from the Business’s use of the applicable premises, and (ii) agreements with customers who use the Business’s intellectual property, under which the Business may indemnify customers for copyright or patent infringement related specifically to use of such intellectual property.

Generally, a maximum obligation under these contracts is not explicitly stated. Historically, the Business has not been required to make payments under these obligations, and no liabilities have been recorded for these obligations in the accompanying statements of assets to be acquired and liabilities to be assumed.

Indemnifications

The Business indemnifies certain of its customers against claims that products purchased from the Business infringe upon a patent, copyright, trademark or trade secret of a third party. In the event of such a claim, the Business agrees to pay all litigation costs, including attorney fees, and any settlement payments or damages awarded directly related to the infringement. The indemnification provisions generally do not expire. The Business is not currently defending any intellectual property infringement claims and has not been informed of any pending infringement claims. Accordingly, the Business has not recorded a liability related to such indemnifications.

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