1997 CONFIDENTIAL 2 1.6 "New Version" in this Agreement shall mean a new release of Licensed Technology that provides significant performance enhancements, including new releases of software product optimized for different members of the same DSP processor family which is based on the same core architecture and instruction set. 1.7 "Defect" shall mean any failure of Licensed Technology to meet the Specification as a result of a material failure (including an error or "bug" that is material) of the Licensed Technology. "Material" is defined as priority A, B, and C in Article 6.3. 1.8 "Source Code" shall mean all computer programming instructions relating to a software product in a form readable by humans and typically prepared by a programmer. Source Code includes associated procedural code, comments, utilities, tools, notes, data diagrams and related and supporting technical documentation. 1.9 "Object Code" shall mean software code resulting from the translation or processing of Source Code by a computer into machine language or intermediate code, which thus is in a form that would not be convenient to human understanding of the program logic, but which is appropriate for execution or interpretation by a computer. 1.10 "Licensed Source Code" shall mean Source Code for Licensed Technology. 1.11 "Licensee Product" shall mean the product being developed by LICENSEE as described in Exhibit B, which utilizes Licensed Technology. LICENSEE shall own all rights, title and interest in Licensee Product. D2 shall have no rights to Licensee Product. 1.12 "End User" shall mean a person or business entity that purchases, leases or otherwise properly obtains the right to use or distribute a Licensee Product directly from LICENSEE or through one or more intermediaries. 2. LICENSED TECHNOLOGY 2.1 Ownership. Subject to the rights granted to LICENSEE in this Agreement, D2 owns all right, title and interest in and