The US Bankruptcy Court gave an order approving the sale of the certain assets of TranSwitch Corp. on January 31, 2014. The trustee has been authorized to sell debtor's certain assets to Cadence Design Systems, Inc. for a purchase price of $1.25 million, minus the portion of the OCS Expense to be allocated to the seller.

The aggregate consideration under this agreement and the Israel APA is $2.5 million. The purchaser, the Trustee and the Temporary Liquidator have agreed that up to $0.1 million of the purchase price will be allocated to efforts to obtain consent from Israel's Office of the Chief Scientist and will be borne by the purchaser. The sale consists of the transfer and sale of all intellectual property rights and assets held by the estates of the debtor and the subsidiary that cover or are utilized for the HSI Business.