Microprocessor
Ready pin of microprocessor is used

 to indicate that microprocessor is ready to receive outputs
 to introduce wait state
 to indicate that microprocessor is ready to receive inputs
 to provide direct memory access

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Microprocessor
A high on RESET OUT signifies that

 all the registers of the CPU are being reset
 all the registers and counters are being reset
 all the registers and counters are being reset and this signal can be used to reset external support chip
 processing can begin when this signal goes high

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