LICENSE, DEVELOPMENT AND RESELLER AGREEMENT BETWEEN LXE, INC. AND VOXWARE, INC. LXE Agreement Number: ___________ Voxware Agreement Number: ___________
Exhibit
10.4
LICENSE,
DEVELOPMENT AND RESELLER AGREEMENT
BETWEEN
LXE, INC. AND VOXWARE, INC.
|
LXE
Agreement Number: ___________
Voxware
Agreement Number: ___________
Execution
Copy—September
26, 2005
Table
of Contents
1.
|
Definitions
|
1
|
2.
|
Appointment
of Voxware as a Reseller by LXE.
|
4
|
3.
|
Appointment
of LXE as a Reseller by Voxware
|
4
|
4.
|
Exclusivity
and Related Restrictions
|
5
|
5.
|
Responsibilities
of the Parties
|
6
|
6.
|
Pricing
and Payment
|
7
|
7.
|
Transition
Issues for the 410 Hardware Products
|
9
|
8.
|
Development
of the Next Generation Products
|
9
|
9.
|
Forecasts,
Ordering, Shipment and Returns
|
11
|
10.
|
Licensed
Software
|
12
|
11.
|
Maintenance,
Warranties and Repairs
|
12
|
12.
|
Disclaimer
of Warranties; Limitation of Liability.
|
14
|
13.
|
Confidentiality
and Non-Disclosure; Press Releases
|
15
|
14.
|
Indemnification.
|
16
|
15.
|
Term
and Termination.
|
16
|
16.
|
Effect
of Termination or Expiration.
|
17
|
17.
|
Regulatory
Approvals/Reporting/Export.
|
18
|
18.
|
Records;
Audit Rights.
|
18
|
19.
|
Trademarks,
Trade Names and Related Matters
|
19
|
20.
|
General
Provisions.
|
20
|
Appendices
|
|
Appendix
A: LXE Pricing to Voxware
|
24
|
Appendix
B: Voxware Pricing to LXE
|
26
|
Appendix
C-1: LXE®
Trademark Guidelines
|
28
|
Appendix
C-2: Voxware’s Trademark Guidelines
|
28
|
Appendix
D: Voxware Customers
|
30
|
Appendix
E: 410 Technology
|
31
|
Appendix
F: Next Generation Product Specifications
|
32
|
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
LICENSE,
DEVELOPMENT AND RESELLER AGREEMENT
This
License, Development and Reseller Agreement (“Agreement”), is entered into as of
September 26, 2005 (the “Signature Date”), by and between LXE Inc., a Georgia
corporation (“LXE”), and Voxware, Inc., a Delaware corporation
(“Voxware”).
W I T N E S S E T H:
WHEREAS,
Voxware and LXE each develop, manufacture, and sell certain wireless data
communication products and provide related support services in connection with
such products; and
WHEREAS,
LXE will take over manufacturing of Voxware’s 410 Hardware Products for Voxware,
LXE and LXE’s Customers;
WHEREAS,
LXE wishes to have Voxware assist and Voxware agrees to assist LXE in its
development of the Next Generation Product;
WHEREAS,
each party, in the role of Reseller, desires to purchase the products and
services of the other party, in the role of Supplier, as hereinafter described
under those terms and conditions as set forth; and
NOW,
THEREFORE, in consideration of the promises herein contained, the parties hereto
agree as follows:
1. Definitions
a. “410
Hardware Product” means Voxware’s VoiceLogistics Model 410 hardware product as
licensed by Voxware to LXE hereunder, and all peripherals thereto, excluding
Headsets and related Headset peripherals. Tentatively, LXE has named its version
of the 410 Hardware Product the “HX1.”
b. “410
Branded Product” means the 410 Hardware Product with Voxware
Branding.
c. “410
Technology” means the functional specifications, user and technical
documentation, design documents and other information related to the design
and
operation of the 410 Hardware Products that is set forth on Appendix E
hereto.
d. “2004
VAR
Agreement” means the Value-Added Reseller Agreement executed by the parties in
*****, and which bears LXE’s Agreement Number *****.
e. “Branded
Products” means the 410 Branded Product and the Next Generation Branded
Product.
f. “Branding”
means the use of Trademarks and other markings to indicate the source of
particular Products or features of Products. Branding includes Primary Branding
and Secondary Branding.
g. “Browser”
means the then-current version of Voxware’s Licensed Software Product initially
developed for the deployment with the 410 Hardware Products.
h. “Customer”
means an end user of the Product that may not resell the Product to
others.
i. “Development
Schedule” means the schedule and milestones for the development of the Next
Generation Products as more particularly described in Section
8(a)(i).
j. “End
User
License Agreement” or “XXXX” means a license agreement for Licensed Software
between the licensor and the Customer or other users of the Licensed
Software.
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
1
k. “Effective
Date” means October 1, 2005.
l. “Equipment”
means a hardware Product that may also include software and related
documentation sold by Supplier to Reseller in accordance with the terms and
conditions of this Agreement.
m. “Headset”
means a hardware Product that includes a speaker and/or a microphone for
individual use, including without limitation headsets, audio cables, headphones
and ear buds.
n. “Intellectual
Property Rights” shall mean all forms of legal rights and protections in any
country of the world, including all right, title and interest arising under
common and statutory law to all: (i) letters patents, provisional patents,
design patents, PCT filings and other rights to inventions or designs; (ii)
trade secret and equivalent rights in confidential or proprietary information
and know-how; (iii) copyrights, mask works, moral rights or other literary
property or authors rights; (iv) all Trademarks; (v) any similar, corresponding
or equivalent rights relating to intangible intellectual property; and (vi)
all
applications, registrations, issuances, divisions, continuations, renewals,
reissuances and extensions of the foregoing.
o. “Level
1
Maintenance Services” shall mean maintenance and support provided by Reseller or
a VAR to a Customer. Customer shall direct all requests for such service to
the
Reseller or VAR as appropriate, which shall perform a preliminary diagnosis
of
the problem and assist Customer in implementing the proposed solution to the
extent needed.
p. “Level
2
Maintenance Services” shall mean Supplier’s performance of software and hardware
repairs with respect to the Supplier Products, including Supplier’s return of
repaired Equipment and other hardware to the VAR.
q. “Licensed
Software” means the object code form of computer programs proprietary to
Supplier or its suppliers and licensed to Reseller, VAR or Customer in
accordance with this Agreement and where applicable, other product-specific
licenses. Licensed Software includes (i) computer programs embedded in firmware,
(ii) computer programs embedded in diskettes or another medium to use on
particular Equipment and solely for the control and monitoring of that
particular Equipment, (iii) computer programs embedded in diskettes or another
medium for use separate from or in conjunction with Equipment, and/or (iv)
users
and operations manuals related to the Licensed Software.
r. “LXE
Product” means a product owned or distributed by LXE other than the Next
Generation Branded Product.
s. “Next
Generation Branded Product” means the Next Generation Product with Voxware
Branding.
t. “Next
Generation Product” or “NextGen Product” means LXE’s hardware Product designed
by LXE in collaboration with Voxware as a replacement for the 410 Hardware
Product, and all peripherals thereto, excluding Headsets.
u. “Non-Disclosure
Agreement” or “NDA” means the Proprietary Information Exchange Agreement between
the parties dated *****.
v. “Product(s)”
means technology, products, peripherals and other items owned or sold by a
party
currently or in the future under this Agreement, including without limitation
Licensed Software, Equipment, Headsets, Branded Products, and Voxware Products.
w. “Primary
Branding” means the use of a party’s Trademarks to indicate to VARs and
Customers that the source of a Product is a particular party.
Execution
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26, 2005
***** Portion
for which confidential treatment requested.
2
x. “Purchase
Order” means a written request to purchase issued by Reseller that sets forth
the Product(s) being ordered, the price thereof, the quantity requested, the
delivery schedule, and the destination and such other information as Supplier
may request from time to time.
y. “Reseller”
means a party under this Agreement (i.e., Voxware or LXE) that receives Products
from the other party for resale directly or indirectly to Customers.
z. “Secondary
Branding” means the use of a party’s Trademarks to indicate to VARs and
Customers that a Product contains features or technology sourced from a
particular party, which may be the same or different from the Primary Branding
for that Product.
aa. “Services”
means services performed by Supplier for Reseller, including but not limited
to
technical and sales training, technical consulting, product development,
installation, site configuration and testing, preventive maintenance
inspections, depot repair and facility analysis, as well as warranty period
and
post-warranty period maintenance services.
bb. “Specifications”
means the Next Generation Product specifications as agreed to by the parties
in
accordance with the Development Schedule. The Specifications will be attached
to
and made part of this Agreement as Appendix F (“Next Generation Product
Specification”).
cc. “Supplier”
means the party under this Agreement (i.e., Voxware or LXE) that supplies
Products to the other party for resale.
dd. “Territory”
means *****, provided, that the term “Territory” excludes any such country or
territory where: (i) the sale or delivery of the Product in question into such
country or territory must be approved pursuant to the United States Export
Administration Act, as amended, 50 U.S.C. App. Clause 2401 et seq.,
and the
regulations promulgated pursuant thereto, and no such approval has been obtained
by Supplier or by any other person acting on behalf of Supplier; or (ii) the
sale of delivery of the Product in question into such country or territory
is
otherwise prohibited by United States law.
ee. “Trademarks”
means rights regarding trade names, logos, trade dress, product shapes, colors,
domain names, uniform resource locators (“URLs”), trademarks, service marks and
other proprietary indicia or addresses and all goodwill associated therewith,
and all applications, registrations, and renewals of the foregoing.
ff. “VAR”
means a third party to whom Reseller grants the right to sell and distribute
Supplier’s Products. For the purpose of this Agreement, the term “Reseller” is
used to reference a party to this Agreement, while “VAR” refers to a third party
reseller.
gg. “Voxware
Customers” means those Customers and VARs of Voxware for whom Voxware provides a
hardware, software and/or related services, and which are listed on Appendix
D,
as it may be amended to reflect new Customers and VARs of Voxware. For purposes
of clarity, in the event Voxware provides a hardware, software and/or related
service to a Voxware Prospective Customer, such Voxware Prospective Customer
will become a Voxware Customer.
hh. “Voxware
Prospective Customers” means those Prospective Customers and Prospective VARs
listed on Appendix D.
ii. “Voxware
Product” means a Product for which Voxware is the Supplier or Reseller, as the
context dictates.
jj. “Work
Product” means all original works of authorship first developed or prepared in
the development of the Next Generation Products under this Agreement and
physical embodiments thereof, including tooling, mechanical, software and
firmware (including but not limited to engineering test software developed
by
LXE for testing purposes), and drawings, and all related work associated with
the development and design of Next Generation Products and the Specifications,
including all copyright, patent, trade secret and other Intellectual Property
Rights therein.
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
3
2. Appointment
of Voxware as a Reseller of the Next Generation Branded
Product
a. LXE
appoints Voxware and Voxware accepts appointment as an exclusive value added
reseller of the Next Generation Branded Products only in the Territory to
Customers, all strictly in accordance with the terms of this Agreement and
the
attached Appendices hereto, as the same may be amended in writing from time
to
time.
b. LXE
Products.
This
appointment shall not apply to any LXE Products. LXE may appoint at any time
and
from time to time other distributors or resellers to distribute the LXE
Products. LXE reserves the right to market and solicit sales of the LXE Products
directly and through other resellers or distributors, and through any other
channel of distribution that LXE in its sole judgment deems desirable, and
Voxware will not be entitled to any commission, discount or any other
compensation with respect to or on account of any such sales. Distribution
of
LXE Products shall be governed by the ***** VAR Agreement.
c. Restrictions. Voxware
shall distribute the Next Generation Branded Products only in accordance with
the terms of this Agreement. Unless specifically authorized under the terms
of
this Agreement, Voxware shall not, nor shall it permit others to, reproduce
or
otherwise make copies of any portion of the Next Generation Branded Products,
distribute copies or tamper, modify, reverse engineer, disassemble, decompile,
or otherwise determine or attempt to determine or have or attempt to obtain
access to the source code or internal design of the Next Generation Branded
Products. Nothing in this Agreement shall be construed to grant Voxware any
rights of any kind with respect to any portion of the Next Generation Products
or LXE Products except as expressly and unambiguously set forth in the
Agreement. All rights, title and interest in and to, and ownership of, the
LXE
Products and Next Generation Products shall remain at all times solely and
exclusively with LXE. LXE shall not be liable for any modification made by
Voxware or third parties to the Next Generation Branded Product.
3. Appointment
of LXE as a Reseller of Voxware
Products
a. Voxware
appoints LXE and LXE accepts appointment as a Reseller of the Voxware Products
stated in Appendix B only in the Territory to Customers and VARs, all strictly
in accordance with the terms of this Agreement and the attached Appendices
hereto, as the same may be amended in writing from time to time.
b. Non-exclusive.
Except
as expressly stated in this Agreement, this appointment is not exclusive to
LXE.
Voxware may appoint at any time and from time to time other distributors or
resellers to perform the same distribution services as LXE. Voxware reserves
the
right to market and solicit sales directly and through other resellers or
distributors, and through any other channel of distribution that Voxware in
its
sole judgment deems desirable, and LXE will not be entitled to any commission,
discount or any other compensation with respect to or on account of any such
sale.
c. Restrictions. LXE
shall
distribute the Voxware Products only in accordance with the terms of this
Agreement. Unless specifically authorized under the terms of this Agreement,
LXE
shall not, nor shall it permit others to, reproduce or otherwise make copies
of
any portion of the Voxware Products, distribute copies or tamper, modify,
reverse engineer, disassemble, decompile, or otherwise determine or attempt
to
determine or have or attempt to obtain access to the source code or internal
design of the Voxware Products. Nothing in this Agreement shall be construed
to
grant LXE any rights of any kind with respect to any portion of the Voxware
Products except as expressly and unambiguously set forth in the Agreement.
All
rights, title and interest in and to, and ownership of, the Voxware Products
shall remain at all times solely and exclusively with Voxware. Voxware shall
not
be liable for any modification made by LXE or third parties to any of the
Voxware Products.
d. Trademark
and Copyright License. During
the Term, Voxware hereby grants to LXE a nonexclusive, nontransferable license
to use, copy, and reproduce the Voxware trademarks, trade names, and copyrighted
material in the Licensed Software and 410 Hardware Product documentation as
updated by Voxware and provided to LXE from time to time, solely in connection
with the sale of the Browser hereunder, provided, that LXE shall not make any
substantive changes to such Voxware copyrighted material without the prior
written consent of Voxware.
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
4
4. Exclusivity
and Related Restrictions
a. Exclusives
and Restrictions on 410 Hardware Product and the Next Generation
Product.
With
respect to the 410 Hardware Product and the Next Generation Product,
and
subject to the express provisions of this Agreement:
(i) Voxware
***** or have made the 410 Hardware Product.
(ii) Voxware
***** 410 Hardware Products or obtain 410 Hardware Products from ***** than
LXE.
Voxware will purchase ***** the 410 Hardware Products from LXE.
(iii) Voxware
may not sell or resell hardware Products ***** the 410 Hardware Products or
Next
Generation Products. Voxware further agrees ***** manufactured by *****
(iv) However,
Voxware shall have the right to notify LXE in writing that the exclusivity
and
related requirements under this Section 4.a
shall
terminate within ***** in the event that (1) LXE fails to provide Voxware with
continuous, timely deliveries of the 410 Hardware Products or Next Generation
Products, all of which are of commercially acceptable quality, provided,
however, that LXE shall have ***** to cure only the first such failure after
Voxware provides LXE with written notice of such failure; or (2) LXE fails
to
sell to Customers and VARs (excluding Voxware) the number of units stated below
of the 410 Hardware Products each calendar quarter beginning *****, and such
failure continues for ***** (not accounting for credits or monies paid by
Voxware to LXE under this Agreement); or (3) LXE fails to license to third
parties the number of units stated below of the Browser (for purposes of this
paragraph, Browser unit sales by LXE shall include unit sales of the Browser
on
both Next Generation Products or LXE Products sold to third parties) each
calendar quarter beginning *****, and such failure continues for ***** (not
accounting for credits or monies paid by Voxware to LXE under this Agreement),
as follows:
Calendar
Quarter
|
410
Hardware Products:
Units
Sold and Shipped by
LXE
to Third Parties
|
Browsers:
Units Sold and
Shipped
by LXE to Third
Parties
|
*****
|
*****
|
*****
|
*****
|
*****
|
*****
|
*****
|
*****
|
*****
|
*****
|
*****
|
*****
|
b. Voxware’s
Non-410 Hardware Products.
Voxware’s appointment of LXE as a Reseller of the Voxware Products referenced in
Appendix B other than the 410 Hardware Products (collectively, the “Non-410
Hardware Products”) is non-exclusive as to Voxware. Voxware may appoint at any
time and from time to time other distributors or resellers to perform as a
Reseller, VAR or otherwise with regard to the Non-410 Hardware Products,
including without limitation Voxware’s Browser. Voxware reserves the right to
market and solicit sales directly and through other resellers or distributors,
and through any other channel of distribution that Voxware in its sole judgment
deems desirable for such Non-410 Hardware Products, and LXE will not be entitled
to any commission, discount or any other compensation with respect to or on
account of any such sale.
c. Voxware’s
Licensed Software.
During
the Term, LXE will not directly sell, distribute, license or otherwise provide
any software, computer programs or firmware that competes with Voxware’s
Licensed Software, including without limitation the Browser. Specifically
included in this restriction is that LXE may not sell, distribute, license
or
provide any technologies produced by ***** that compete with Voxware’s Licensed
Software.
d. Voxware’s
Headsets.
During
the Term, Voxware will be the sole supplier of LXE’s Headsets required for sales
of LXE Products and 410 Hardware Product that are bundled with the Browser.
For
purposes of clarity, LXE will not directly or indirectly sell or supply any
third party Headsets (including its own) with any LXE Product and 410 Hardware
Product bundled or sold with the Browser.
Execution
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26, 2005
***** Portion
for which confidential treatment requested.
5
e. Voxware
Prospective Customers; Customers.
Unless
otherwise agreed to by the parties, ***** from the Effective Date of this
Agreement, LXE agrees that it shall not sell nor provide to any Voxware
Customer: (1) any 410 Hardware Products, Next Generation Products or Browsers;
or (2) any Products that ***** with or provide substantially the same
functionality as the 410 Hardware Products, Next Generation Products or
Browsers. The list of Voxware Prospective Customers and Voxware Customers is
attached as Appendix D, provided, that in the event Voxware provides a hardware,
software and/or related service to a Voxware Prospective Customer, then such
Voxware Prospective Customer shall become a Voxware Customer and Appendix D
shall be amended. The above restrictions on LXE with respect to Voxware
Customers shall be applicable to Voxware Prospective Customers, provided, that
in the event that Voxware does not convert a Voxware Prospective Customer to
a
Voxware Customer within ***** of the Effective Date, the Voxware Prospective
Customer shall be removed from Appendix D and no further LXE sale restrictions
shall apply to such Voxware Prospective Customer. The parties acknowledge that
many of the Voxware Customers and Voxware Prospective Customers referenced
in
Appendix D are also LXE customers. In the spirit of this Agreement, the parties
agree that it may be appropriate for LXE and Voxware to collaborate on a sales
strategy to improve the parties’ mutual competitive position on many of these
customer accounts. The parties agree to review in good faith, at a later date,
each common customer and prospect to determine if a joint strategy would be
more
appropriate. If both parties agree in writing that a cooperative strategy is
required, then the LXE sale restrictions described above shall not apply to
the
applicable customer.
f. Restriction
on Sales *****.
During
the Term, LXE will not directly or indirectly sell, license or otherwise provide
any 410 Hardware Products, Next Generation Products or Voxware Licensed Software
(including the Browser) to *****.
g. Next
Generation Product.
Voxware
obtains no license or right to build the Next Generation Product under this
Agreement.
5. Responsibilities
of the Parties
a. Customers.
Each
party as Reseller agrees that it shall purchase the Supplier’s Products under
this Agreement only for its own business use or for resale, in the regular
course of its business, to VARs and Customers.
b. Promotion.
Reseller shall, at its own expense use commercially reasonable efforts to
promote the Supplier Products and/or services in respect thereof. Such promotion
shall not in any way prejudice Supplier’s reputation or the Supplier Products,
and shall not offer or imply any obligation on the part of Supplier to
Customers.
c. Promotion
of Supplier Products.
(i) If
requested to do so by Reseller, Supplier will consider, but shall not be
obligated, to participate in a cooperative marketing program with Reseller,
and
provide reasonable assistance to Reseller in preparing suitable promotions
and
related materials.
(ii) Supplier
may make available to Reseller such advice, guidance and information regarding
the marketing and advertising of the Products as Reseller shall reasonably
require. To assist Reseller in the performance of its duties hereunder, Supplier
may from time to time provide non-confidential specifications, drawings,
manuals, or such other publications as may be appropriate.
d. Training.
Supplier
will make reasonable sales and technical training available to Reseller at
its
request. Supplier may charge a fee for this training. Reseller acknowledges
sole
responsibility for the training of Customers and VARs in connection with the
use
of Products. Both Reseller and Supplier will offer each other up to ***** and
technical training each year. The training will be conducted at the place of
business or location designated by the party who is conducting the
training.
Execution
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26, 2005
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for which confidential treatment requested.
6
e. Leads.
At
Supplier’s sole discretion, Supplier may supply selected leads to Reseller, on a
non-exclusive basis, when Supplier identifies a prospect that requires services
believed by Supplier to be within Reseller’s capabilities.
6. Pricing
and Payment
a. LXE
Pricing to Voxware: 410 Hardware Products.
LXE’s
pricing for the 410 Branded Products is separately stated on Appendix A for
Voxware’s purchase of 410 Branded Products and related peripherals licensed by
Voxware for production by LXE. Such pricing of 410 Branded Products and related
peripherals shall be *****. Any increase or decline in the BOM and/or Direct
Labor and Labor Overhead Costs shall be *****, provided, however, that *****
may
not ***** more than *****. ***** Direct Labor and Labor Overhead Costs is *****,
then the current BOM and Direct Labor and Labor Overhead Costs used to calculate
*****.
b. LXE
Pricing to Voxware: Next Generation Branded Products.
LXE’s
pricing for the Next Generation Branded Products and related peripherals from
LXE to Voxware will be in accordance with the formulas and approaches used
for
the 410 Branded Products (including without limitation Voxware’s right to audit
LXE’s BOM), with the following modifications/additions:
(i) The
*****
for the ***** after the first shipment of quantity (i.e., non-prototype)
production of the Next Generation Branded Product shall be *****.
(ii) The
*****
for the Next Generation Branded Product shall be ***** (after the first
shipment) of production.
(iii) In
no
case shall the Next Generation Products be ***** 410 Branded Products. Should
LXE be unable or fails to ship the Next Generation Branded Product in production
quantities in excess of ***** of the Effective Date of this Agreement, at prices
***** the 410 Branded Products, Voxware may either require LXE to continue
production of the 410 Branded Products, or Voxware’s license to LXE for the 410
Hardware Products will revert from exclusive to non-exclusive to enable Voxware
to make, have made and produce the 410 Hardware Products.
(iv) The
*****
referenced in (i) and (ii) are subject to Voxware’s ***** of the Next Generation
Branded Product in ***** during the Term beginning the *****, provided, that
LXE
is able to supply adequate production quantities to meet such
requirements.
c. LXE
Pricing to Voxware: No Less Favorable.
LXE’s
pricing to Voxware for each of the 410 Branded Products and the Next Generation
Branded Products shall be ***** than LXE’s pricing of the 410 Hardware Product
or Next Generation Product, respectively, to any other VAR, customer or other
entity contracting with LXE. If LXE agrees to provide or at any time provides
the 410 Hardware Products or Next Generation Products (including any new
developments to such Products) directly or indirectly, pursuant to any
agreement, understanding or arrangement to any such person or entity, for any
period, under any pricing that is ***** to such person or entity than that
set
forth herein, LXE shall immediately give written or email notice thereof to
Voxware, which notice shall include the *****. At Voxware’s election, this
Agreement shall be deemed to have been modified so that Voxware shall receive
and be entitled to the benefits of such more favorable pricing as long as such
pricing is more favorable to Voxware.
d. Voxware
Pricing to LXE.
LXE
agrees to purchase and Voxware agrees to sell Voxware’s Products, including the
Licensed Software, at Voxware’s then current catalog or “list” price in U.S.
Dollars, less an applicable discount to ***** set forth on Appendix B. Firm
proposal pricing, when requested by LXE, shall be provided by Voxware to LXE
solely through a written quotation specifying unit price, applicable discount,
and Voxware Product model number. In addition to paying the license fee for
each
item of Licensed Software, LXE’s Customers (including all LXE Customers who
license the Licensed Software through LXE’s VARs and other intermediaries) *****
agree to and pay for one year of maintenance at the rate and in the amounts
stated in Appendix B and LXE will use reasonable commercial efforts to obtain
renewal of such maintenance from Customers. Notwithstanding the foregoing,
Voxware’s pricing to LXE solely with respect to the Headsets shall be determined
in accordance with the following formula: Total ***** whereby the ***** shall
not *****.
Execution
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26, 2005
***** Portion
for which confidential treatment requested.
7
e. Voxware
Pricing to LXE: *****.
Voxware’s pricing to LXE for Licensed Software ***** than Voxware’s pricing for
Licensed Software to any VAR or competitor to LXE *****. In addition, Voxware
agrees to provide LXE Licensed Software pricing *****.
f. Voxware
Pricing to LXE: Royalty for 410 Hardware Products Sold to Third
Parties.
LXE
shall pay Voxware a royalty for all 410 Hardware Products sold by LXE to third
parties. The royalty shall be *****.
g. Voxware
Pricing to LXE: Royalty for Next Generation Products Sold to Third
Parties.
LXE
shall pay Voxware a royalty for all Next Generation Products sold by LXE to
third parties. The royalty shall be ***** of the Next Generation Product by
LXE,
and ***** thereafter.
h. Voxware
Pricing to LXE: Equipment Sold to Third Parties Without a
Browser.
The
parties intend that for each unit of the 410 Hardware Products and Next
Generation Products sold or otherwise provided by LXE to its VARs, Customers
and
other third parties, LXE shall also provide Voxware’s Browser and other Licensed
Software for use with such 410 Hardware Product or Next Generation Product.
However, during the first three (3) years after the Effective Date, for each
unit of the 410 Hardware Products and Next Generation Products that are not
provided with a licensed copy of Voxware’s Browser or the Licensed Software, LXE
shall pay Voxware the *****. Notwithstanding the foregoing, in the event sales
of the 410 Hardware Products or Next Generation Products are made to Customers
who have purchased the Browser or any components of the Browser directly from
Voxware, the above Unbundled Payment shall not be owed to Voxware. In
addition, for each sale of the Browser bundled with LXE Products, LXE shall
receive a ***** to be applied ***** of any future Unbundled Payments due, if
any, provided that this credit shall not offset or be applicable to any other
amounts due, including, without limitation, any previous Unbundled Payments
made
or due.
i. Reporting
of 410 Hardware Product, Next Generation Product and Licensed Software
Sales.
LXE
shall provide bi-weekly reports on the number of units of 410 Hardware Product,
Next Generation Product and Licensed Software sold or distributed in the
previous two weeks. Upon receipt of such reports, Voxware shall invoice LXE
for
the appropriate amounts due under the terms of this Agreement.
j. Services.
Pricing
for any Services, if any, by either party will be quoted on a case-by-case
basis
by such party.
k. Payment.
Except
as otherwise agreed in writing by the parties, Reseller shall make payment
to
Supplier for the Products or Services received from Supplier in U.S. Dollars
***** from Reseller’s receipt of Supplier’s invoice. Except as provided in
Section 6.i., for sales of Supplier Products, Supplier will invoice upon
shipment of each order. For any annual maintenance contracts, the Supplier
of
such maintenance services shall invoice annually in advance of the upcoming
maintenance renewal term. For all other Services, Supplier shall invoice on
***** unless otherwise agreed to in writing by the parties or pursuant to the
applicable Appendix.
l. Late
Payments.
If
Reseller fails to pay any invoice when due, Supplier will email and fax a copy
of the unpaid invoice to Reseller, which shall have ***** business days to
pay.
Thereafter, Reseller shall be subject to a late payment charge ***** or the
***** until paid. Further, in the event Reseller fails to pay any invoice within
***** of its receipt of Supplier’s email and fax of late payment, Supplier may
demand that Reseller make full or partial payments in advance, accept bills
of
exchange, open for Supplier’s benefit documentary letters of credit, obtain for
Supplier’s benefit bank guarantees or provide other satisfactory security or
guarantees that invoices will be promptly paid when due. If not, Supplier may
decline to deliver Products pursuant to this Agreement.
m. Taxes.
The
amount of any present or future sales, use, value added, excise, duty or other
similar tax or fee applicable to the Products, and the amount of any levies,
dues, retentions and withholdings imposed by any government in the Territory
or
any agencies thereof, and the amount of any customs duty, withholding or other
charge related to the import or payment for the Products shall be paid by the
Reseller, or in lieu thereof the Reseller shall provide Supplier with an
exemption certificate acceptable to each applicable authority or customs duty
authority. If any tax, duty or amount described herein is paid by Supplier,
Reseller shall reimburse Supplier immediately upon Supplier providing evidence
of such payment to the applicable authority.
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n. Modifications
to Pricing.
The
parties agree that they will not modify the discounts or gross margins each
party offers the other, except to improve such discounts or gross margins for
the benefit of the other party. However, for all pricing that is based on a
list
price or other schedule (e.g., excluding the ***** pricing for the 410 Branded
Products and the Next Generation Branded Products), the Supplier shall have
the
right to modify the ***** or other schedule no more than once every ***** upon
written notice to the other party, except where such modification lowers the
list price or other amounts paid by Reseller, in which case Supplier may lower
individual prices at any time upon written or email notification by Supplier
to
the Reseller.
7. Transition
Issues for the 410 Hardware Products
a. Subject
to the terms and conditions of this Agreement, Voxware hereby grants to LXE
an
exclusive license to use, produce, have produced, assemble, make and have made
the 410 Hardware Product from, and take such other actions and exercise such
Intellectual Property rights with respect to, the 410 Technology as reasonably
necessary to produce the 410 Hardware Products in accordance with this
Agreement.
b. Voxware
will deliver the 410 Technology to LXE within ***** after the Effective
Date.
c. Voxware
will retain ownership of the In Circuit Test (“ICT”) equipment located at *****
and hereby grants LXE a license to use the ICT in the same manner that Voxware
has used the ICT in the past to manufacture or repair the 410 Hardware Product
or 410 Branded Product.
d. The
parties will prepare and carry out a transition plan for the 410 Hardware
Products. Voxware and LXE will identify the best process by which Voxware will
continue to have an uninterrupted source of 410 Hardware Products. The process
may include (A) Voxware continues to manufacture the 410 Hardware Products
for
Voxware’s account at the beginning of the transition, (B) LXE prepares 410
Hardware Products using parts supplied by Voxware, (C) Voxware tests LXE-built
410 Hardware Products for compliance with specifications, and (D) LXE takes
over
all responsibility for the 410 Hardware Products.
e. Voxware
will introduce LXE to Voxware’s suppliers for the 410 Hardware Products,
including without limitation *****, the source of Voxware’s ***** for the 410
Hardware Products. The parties will work with ***** and other suppliers to
establish appropriate relationships between each such supplier and
LXE.
f. Initially,
the parties expect that Voxware will retain its manufacturing and testing
equipment for the 410 Hardware Products in order that Voxware may continue
to
service the Voxware Customers. LXE will purchase or develop its own
manufacturing and test equipment for the 410 Hardware Product. .
g. Initially,
LXE will buy from Voxware all supplies it needs to make the 410 Hardware
Products. Upon completion of the transition outlined in Section 7c, prior to
buying supplies from third party suppliers, LXE will first contact Voxware
to
determine Voxware’s inventory of such supplies and will buy any such supplies
that it needs first from Voxware to manufacture the 410 Hardware Product at
Voxware’s ***** shipping, handling and other reasonable costs of sale.
Notwithstanding the foregoing, in the event Voxware does not have a supply
needed by LXE to manufacture the 410 Hardware Product or Voxware chooses not
to
sell such supply, LXE shall be free to purchase such supply from any third
party.
8. Development
of the Next Generation Products
a. LXE
Obligations.
During
the development of the Next Generation Products, LXE agrees, among other things
specified in this Agreement:
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(i) To
use
commercially reasonable efforts to work exclusively with Voxware to develop
within ***** after the Effective Date the Development Schedule for the
development of the Next Generation Product. Upon signing by the parties, the
Development Schedule will be deemed a part of this Agreement.
(ii) To
use
commercially reasonable efforts to comply with the Development Schedule and
milestones contained therein.
(iii) To
obtain
and maintain, at its sole expense, all production tooling and test equipment
required to manufacture the Next Generation Product and comply with its
obligations under this Agreement.
(iv) To
manufacture and supply the Next Generation Product that conforms to the
Specifications in the time periods set forth in the Development
Schedule.
(v) To
assign
a point-of-contact for Voxware communications with respect to the coordination
between the parties that is described in this Agreement.
b. Voxware
Obligations.
During
the Term, Voxware agrees, among other things specified in this Agreement:
(i) To
use
commercially reasonable efforts to work with LXE, as reasonably requested by
LXE, to finalize the Development Schedule.
(ii) To
provide LXE technical assistance as reasonably requested by LXE to assist LXE
in
the design and development of the Next Generation Products.
(iii) To
assign
a point-of-contact for LXE communications with respect to the coordination
between the parties that is described in this Agreement.
(iv) In
the
event that Voxware desires to conduct tests of the Next Generation Products,
Voxware will conduct such tests itself, pay LXE to conduct such tests at LXE’s
out-of-pocket costs, or pay third parties to do so.
c. Specifications
and Acceptance Criteria.
Within
***** after LXE’s delivery to Voxware of any set of ***** of the Next Generation
Product, the parties shall either mutually:
(i) confirm
in writing that the pre-production samples of the Next Generation Product and
the associated design conform to the Specifications developed by the parties
in
accordance with the Development Schedule (“Acceptance”); or
(ii) prepare
in writing a report of each deficiency identified in the pre-production samples
of the Next Generation Product and associated design, including specific reasons
for such deficiency. LXE and Voxware (if requested by LXE) shall make any
adjustments to the Next Generation Product design to address the deficiencies
if
such deficiencies are in the design.
d. Quality
Control.
LXE is
responsible for developing a quality program to control its own production
process to assure all Next Generation Branded Products shipped to Voxware in
accordance with this Agreement meet the Specifications.
e. Modification
of the Specifications.
After
the parties’ final agreement as to the Specifications and prior to initial
product release, LXE may alter the Next Generation Product only (i) to improve
reliability, quality or safety, or to comply with standards or requirements
of
any governmental or industry recognized body or regulatory agency, or (ii)
to
avoid infringement of any patent or other proprietary right. However, LXE shall
not alter or change the form, fit or function of the Next Generation Product,
including exterior appearance or functional characteristics, or reduce
performance levels of Next Generation Product as previously agreed to, without
the written approval of Voxware, which approval shall not to be unreasonably
withheld or delayed.
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for which confidential treatment requested.
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f. Change
Orders.
All
changes to the Specifications, and all requests for the performance of
additional services not specified in this Agreement, will be made only by a
written change order or other written authorization approved by both parties
specifying the change and any effect on the Development Schedule, the Next
Generation Products, the delivery schedule, the net price of the Next Generation
Products, and additional cost allocation required as a result of such
changes.
g. Capital
Expenses.
Each
party agrees to provide such capital investment and be responsible for such
costs and expenses as necessary to comply with their respective obligations
under this Agreement.
h. Intellectual
Property Rights.
LXE
shall have the exclusive ownership and all right, title and interest in all
Intellectual Property Rights inherent in the design of the Next Generation
Product, the Specifications, all related Work Product, and all tooling required
to manufacture and test the Next Generation Product, excluding any items or
Products expressly licensed by Voxware to LXE under this Agreement (e.g., the
410 Technology). LXE retains the right to use Work Product to facilitate the
design, manufacture and test and sale of any Next Generation Product or LXE
Product for itself or any other third party. The Next Generation Product may
contain LXE’s Licensed Software (including any firmware) for internal operation,
or as embedded software that is generally not sold or licensed as a severable
software Product. Such LXE Licensed Software is proprietary, copyrighted, and
may also contain valuable trade secrets and may be protected by
patents.
i. Software
License.
Subject
to the terms and conditions of this Agreement, Voxware hereby grants to LXE
at
***** a non-exclusive license to use, copy, load, test, and otherwise run the
Browser solely (1) in connection with LXE’s development of the Next Generation
Product in collaboration with Voxware and (2) for demonstration in conjunction
with 410 Hardware Product, Next Generation Product or LXE Products.
9. Forecasts,
Ordering, Shipment and Returns
a. With
respect to Supplier Products that the Reseller expects to purchase in quantity
(e.g., Voxware’s purchase of 410 Branded Products or Next Generation Branded
Products from LXE, and LXE’s purchase of Browsers and Headsets from Voxware),
Reseller agrees to provide Supplier no later than the ***** rolling forecast
outlining projected purchases of Supplier Products. Each forecast shall be
non-binding. Supplier may reasonably request additional updates to or
confirmation of the Reseller’s ***** forecast.
b. Following
Supplier’s acknowledgment of each order by Reseller, Supplier shall use its
commercially reasonable efforts to effect shipment of the Products or delivery
of the Services within the time stated on such acknowledgment, but in no event
shall Supplier be liable for a failure to ship or perform within the time
stated. Supplier will ship Products F.O.B. point of shipment (Norcross, Georgia
for LXE; either Cambridge, Massachusetts or Lawrenceville, New Jersey for
Voxware). Shipping costs will be prepaid by Supplier and added to Reseller’s
invoice. In the absence of explicit shipping directions, Supplier will use
its
own discretion as to mode of shipment. Title to the Products sold and risk
of
loss and damage to the Products sold shall pass to Reseller immediately upon
delivery of the Products to a common carrier, or to an employee or other agent
of Reseller, at Supplier’s manufacturing facility.
c. Reseller
hereby grants Supplier a security interest in the Products sold hereunder and
in
the proceeds therefrom, such security interest to continue until Reseller has
made full payment therefor. Reseller agrees that it will execute any UCC
Statements or other documents evidencing Supplier’s security interest in the
Products, upon request of Supplier.
d. At
any
time prior to the scheduled date of shipment, Reseller may cancel any
or
all Products on order upon payment to Supplier of a cancellation fee for each
unit of Product canceled. Such cancellation fee shall be computed as
follows:
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Number
of Days Prior to Scheduled Date of Shipment Cancellation
Charges Expressed
that
Notice of Cancellation is Received by
LXE
as
a Percentage of List Price
*****
Supplier
will allow Reseller to delay or accelerate any shipment if reasonably
practicable upon notice of the new shipping date received by Supplier. All
notices of cancellation, rescheduling, or return must be in writing or email
to
be effective.
10. Licensed
Software
a. License.
All
Licensed Software is subject to a non-exclusive license from Supplier as
expressly stated in the Supplier’s then-current End User License Agreement or
“XXXX.” Reseller agrees to use diligent efforts to obtain from the VAR, Customer
or other user of the Licensed Software a fully executed XXXX. The Supplier’s
XXXX shall be shipped in hard copy and on disk with the Licensed Software,
and
may be embedded in the Licensed Software by the Supplier, e.g., by use of an
electronic agreement or “clickwrap,” or other process or format then generally
accepted within the information technology industry. For any Licensed Software
licensed to the Reseller under this Agreement, the Reseller may transfer the
XXXX for such Licensed Software to a Customer or VAR only as part of the
transfer of all Reseller’s rights in such Licensed Software, and only if
Reseller obtains the prior agreement of its Customer or VAR to be bound by
the
terms of XXXX. In the event that Reseller’s Customer, VAR or other end user does
not accept the terms and conditions of the XXXX, the Licensed Software must
be
returned for a refund, and Reseller agrees to grant a refund if the Licensed
Software has been promptly returned. In addition, the parties agree to
collaborate in the development of a best practices process to simplify the
implementation of the “XXXX” requirements prescribed above.
b. Breach
by Customer.
If
breach of any XXXX by Reseller’s Customer or VAR occurs, then Reseller shall
take prompt corrective action to remedy the breach and shall, in addition,
notify Supplier of the breach and the corrective action taken. Reseller shall
assign to Supplier, at Supplier’s sole option, any rights that Reseller may have
against Customer for breach of such license. Reseller agrees to cooperate with
Supplier in any proceeding against any third party in alleging breach of the
XXXX. Reseller shall not be liable to Supplier for any breach of the terms
of
any license or sublicense by a Customer unless Reseller has willfully or
negligently contributed to or cooperated in the breach.
c. Fees.
License
fees are typically included in the purchase price of Licensed Software. However,
in some instances, such fees are identified as separate line items on Supplier
quotations and invoices.
d. Title.
Title
to Licensed Software shall remain with Supplier or its supplier, notwithstanding
anything to the contrary herein. With respect to Licensed Software, the word
“purchase” or similar or derivative words as used herein are understood to mean
“license,” and “Reseller,” “Customer,” or similar or derivative words as used
herein are understood to mean “licensee.”
e. Voxware’s
Proprietary Rights.
LXE
acknowledges that the Voxware Licensed Software includes specialized voice
recognition and management software that interoperates with Equipment and other
hardware Products. Such Licensed Software is proprietary to Voxware. At all
times, Voxware’s Licensed Software remains the intellectual property of Voxware,
and no transfer of title or proprietary rights is given to LXE or any third
party.
11. Maintenance,
Warranties and Repairs
a. Maintenance
Services.
Except
as otherwise agreed by the parties in writing, each Reseller or its VAR will
provide all Level 1 Maintenance Services for all Supplier Products it sells
to
its Customers. Reseller or its VAR may purchase service maintenance contracts
from Supplier at the ***** of Supplier’s then current list price described on
Appendix A or Appendix B, as applicable. Reseller and its VARs may, with
Supplier’s prior written consent, also elect to offer Customers the option to
contract directly with Supplier for maintenance service of Supplier Products
and
the purchase of accessories for Supplier Products. In such event that Reseller
or its VAR provides Level 1 Maintenance Services directly to Reseller’s
Customer, Supplier will provide Reseller or its VAR, at no additional charge
to
Reseller or its VAR, with telephone technical support for the term of the
initial warranty period as defined in this Agreement or extended warranty period
as may be defined by the Customer and Supplier.
Execution
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26, 2005
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for which confidential treatment requested.
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b. Supplier’s
Warranty.
Supplier
warrants that, except as indicated on a Supplier sales order acknowledgment
form
as warranted by the original manufacturer, all new Supplier Products shall
perform substantially in accordance with the applicable written specifications
published in the applicable Product data sheets and user manuals, and to be
free
from defects in material and workmanship under normal use and service. The
“Warranty Period” shall be for the period stated in the applicable Appendix for
such Product or any other writing signed by the parties.
c. Exclusions.
Except
as expressly provided in this Agreement, the foregoing Supplier warranties
and
commitments are for the benefit of and apply only to Reseller and only during
the applicable Warranty Period.
(i) Not
included under this warranty are services or replacement Supplier Products
that
are required due to (1) abuse, misuse or abnormal conditions of operation;
(2)
damage to the Supplier Product that is a result of the use of unapproved,
non-Supplier mounting devices; (3) any damage to Reseller’s or a Customer’s
equipment or Product as a result of one of those parties or a third party
connecting components that have not been purchased from Supplier and/or
inspected and approved by Supplier for connection to the Supplier Product;
(4)
unauthorized attempts by other than Supplier personnel to install, repair,
maintain, or modify the Supplier Product or system; (5) causes external to
Supplier-maintained Product, such a power surges or force majeure events; or
(6)
defects or warranty claims that arise outside the applicable Warranty Period.
(ii) Reseller
acknowledges and agrees that the warranties set forth in this Section do not
extend to any other party, including to any Customers. Reseller shall not make
any warranty obligations on behalf of Supplier, and any warranty representations
by Reseller to any third party shall be at Reseller’s sole expense and
responsibility. In addition, Reseller agrees to include in any warranties
granted by it a specific disclaimer in connection with Supplier’s warranty
obligations to such third party. Reseller shall allow Supplier, upon its
request, to review the disclaimer being used in contracts with third parties.
d. Notification
and Warranty Procedure.
(i) If,
in
Reseller’s estimation, a Supplier’s Product is defective, Reseller shall
promptly notify Supplier of the nature of the defect in writing, or by promptly
contacting Supplier in accordance with its then-current procedures. If the
Product appears to be covered under the warranties provided in this Agreement,
Supplier will promptly communicate shipping instructions to Reseller.
(ii) All
returned Products must have a return material authorization number (“RMA”) and
returned to Supplier within ***** of the RMA issuance. Products will be returned
to Supplier at Reseller’s expense. Collect shipments will not be accepted.
(iii) Upon
receipt, the Product will be examined and repaired without charge, provided
such
examination discloses, in Supplier’s reasonable judgment, that it is in fact
defective. Should examination reveal that the Product is not defective, Supplier
will notify Reseller and request shipping instructions. In this event, Supplier
will be due to be reimbursed all shipping expenses it has incurred, as well
as a
reasonable charge for the examination. In the event that the examination reveals
that the Product is defective, but for any reason is not covered under the
warranties provided in this Section, Supplier will prepare a failure analysis
report and a quotation of the cost to repair, and communicate this information
to Reseller. Reseller may then either authorize repair of the Product or direct
that the defective Product be returned to Reseller. In the latter event,
Supplier will be due all shipping charges it has incurred, as well as a
reasonable charge for the examination of the Product and the preparation of
the
failure analysis report.
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(iv) Supplier
may, at its option, elect to correct any warranty defects by sending its
supervisory or technical representatives, at Supplier’s expense, to Reseller’s
site or Customer’s site within the continental United States or Canada to make
on-site corrections.
(v) At
Reseller’s request, Supplier will repair any Supplier Product and xxxx Reseller
on a time-and-material basis at Supplier’s lowest rates for any Supplier
Products: (1) Damaged in transit to Supplier’s designated service location, or
(2) that Reseller requests to be repaired despite being out of warranty.
(vi) For
any
Product that proves to be defective and covered under the warranties provided
in
this Section, Supplier will repair or replace and ship, via standard commercial
***** if available. Product repairs provided hereunder are warranted by Supplier
for a period of ***** such repairs are provided, or for the remainder of the
original Product warranty period, whichever is longer.
e. Remedy.
Supplier’s obligation to perform pursuant to the warranties provided in this
Section 11
is
limited to undertaking reasonable efforts to identify and correct any such
defects and non-conformities with the specifications in any warranted Product
returned to Supplier’s designated service location within the Warranty Period.
In the event Supplier fails to correct any warranted Product defect or
non-conformities, Reseller’s sole remedy is to receive a refund of the purchase
price paid for the defective or non-conforming Product.
f. Third
Party Warranties.
For
those Products identified on a Supplier sales order acknowledgment as warranted
by the original manufacturer, such original manufacturer’s warranty applies
solely.
g. Reseller’s
Warranties and Covenants.
Supplier is providing Reseller with financial incentives in the form of a
discount. In consideration of Supplier providing such discounts to Reseller,
Reseller hereby provides the following warranties and covenants:
(i) Materials
and workmanship that Reseller adds to or incorporates into the Supplier Products
for sale to VARs and Customers shall be of a quality reasonably satisfactory
to
Supplier.
(ii) Reseller
shall promptly investigate, seek to rectify, and notify Supplier with respect
to
any VAR or Customer complaints relating to any of the Supplier Products.
Reseller’s efforts in this area shall be consistent with Level 1 Maintenance
Services.
(iii) Reseller
shall perform its sales responsibility, which is to promote and sell the
Supplier Products covered by this Agreement. Reseller shall at all times during
the term of this Agreement use commercially reasonable efforts in the promotion
and sale of Supplier Products consistent with good business ethics, and in
a
manner that will reflect favorably on the Supplier Products and on the goodwill
and reputation of Supplier. Reseller shall at all times refrain from engaging
in
any illegal, unfair or deceptive trade practices or unethical business practices
whatsoever, with respect to the Supplier Products or otherwise.
(iv) Reseller
shall employ, train and maintain sufficient personnel with sufficient technical
and sales experience to demonstrate, sell and support those Supplier Products
purchased under this Agreement. Reseller will field all questions regarding
Supplier Products and Supplier Product support to its VARs and Customers, and
Reseller will in no event refer its Customers directly to Supplier for pre
or
post sales support without prior Supplier approval.
12. Disclaimer
of Warranties; Limitation of Liability.
a. EXCEPT
AS
EXPRESSLY SET FORTH IN THIS AGREEMENT, REGARDLESS OF ANY ADVERTISEMENTS, EACH
PARTY HEREBY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, RELATING TO THE
PRODUCTS AND SERVICES, INCLUDING THE LICENSED SOFTWARE, AND ALL MODIFICATIONS
OR
UPGRADES THERETO, REGARDLESS OF FORM, AND RELATED DOCUMENTATION, INCLUDING
ANY
WARRANTIES OF NON-INFRINGEMENT, FREEDOM FROM INTERFERENCE WITH ENJOYMENT,
MERCHANTABILITY, QUALITY, ACCURACY, FITNESS OF RESULTING WORK PRODUCT, FITNESS
FOR A PARTICULAR PURPOSE, OR THAT PRODUCTS OR SERVICES, INCLUDING ANY LICENSED
SOFTWARE, WILL GENERATE CERTAIN RESULTS.
Execution
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26, 2005
***** Portion
for which confidential treatment requested.
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b. EXCEPT
AS
EXPRESSLY PROVIDED IN THE INDEMNIFICATION PROVISIONS OF THIS AGREEMENT: (1)
NEITHER PARTY ASSUMES ANY LIABILITY EXCEPT AS EXPRESSLY PROVIDED IN THIS
AGREEMENT; (2) IN NO EVENT SHALL EITHER PARTY BE LIABLE WHETHER IN CONTRACT
OR
TORT (INCLUDING, BUT NOT LIMITED TO, NEGLIGENCE) FOR DAMAGES RELATING TO LOSS
OF
MAGNETICALLY STORED COMPUTER PROGRAMS OR DATA, OR FOR ANY SPECIAL, INDIRECT,
INCIDENTAL, OR CONSEQUENTIAL DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF
THE
POSSIBILITY OF SUCH DAMAGES; AND (3) NO CHARGES OR EXPENSES INCIDENT TO ANY
CLAIM SHALL BE ALLOWED UNLESS APPROVED BY AN AUTHORIZED REPRESENTATIVE OF SUCH
PARTY. THIS LIMITATION OF LIABILITY IS INDEPENDENT OF, AND SHALL SURVIVE ANY
FAILURE OF, ANY EXCLUSIVE REMEDIES OTHERWISE PROVIDED FOR IN THIS
AGREEMENT.
13. Confidentiality
and Non-Disclosure; Press Releases
a. LXE
and
Voxware mutually acknowledge that they have executed a Proprietary Information
Exchange Agreement, dated ***** (the “Non-Disclosure Agreement” or “NDA”), the
terms of which are incorporated by reference as if fully set forth herein.
All
information protected by a party under the NDA shall be deemed the “Confidential
Information” of such party under this Agreement.
b. The
terms
of the NDA are hereby extended to include discussions and activities by the
parties with each other, including in connection with this Agreement, for the
duration of this Agreement and ***** thereafter with respect to any Confidential
Information that is not a trade secret. With respect to trade secrets, the
NDA
will extend protection for as long as such information remains a trade secret
under applicable law. Each party may disclose to the other non-public
information and trade secrets (including computer programs recorded in firmware
or on some other medium) and other non-public proprietary information concerning
the Products and its business and affairs, and the same shall be deemed
Confidential.
c. This
Agreement is the Confidential Information of both parties. Except as required
by
law, neither party may reveal this Agreement or any of its provisions to any
person other than its employees and consultants with whom such party has a
confidential relationship without the without the prior written permission
of
the other party. In addition, if a public disclosure is required by law,
including without limitation a filing with the Securities and Exchange
Commission, the disclosing Party shall provide copies of the disclosure
reasonably in advance of such filing or other disclosure for the non-disclosing
Party’s prior review and comment.
d. The
parties further agree that LXE’s manufacture of the 410 Branded Products for
Voxware, the collaborative development of the Next Generation Products for
Voxware, and the licensing of the 410 Technology and the 410 Hardware Products
for production by LXE are particularly sensitive items of Confidential
Information to Voxware, and LXE agrees to hold these items in strict
confidentiality.
e. Neither
party shall issue a press release regarding the other party or any activities
under this Agreement without the prior written agreement of the other party.
The
parties agree to issue a press release promptly after execution of this
Agreement to announce (1) LXE’s launch of the HX1 Product (the LXE
implementation of the 410 Hardware Product), (2) LXE’s selection of Voxware’s
Browser for distribution with the HX1 Product and future LXE Products, and
(3)
the parties’ agreement that LXE’s Equipment and Voxware’s Licensed Software will
be compatible in all future Products. The parties further agree that the content
of all press releases and collateral material will be mutually agreed to prior
to publication, and that the parties will negotiate in good faith the content
of
these materials.
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
15
14. Indemnification.
a. Each
party (“indemnitor”) shall indemnify, hold harmless, and defend, at its expense,
any claim or suit brought by a third party within the Territory against the
other party, its officers, employees, agents or contractors (each, an
“indemnitee”) specifically alleging that
(i) Any
of
the Products (excluding the 410 Technology, the 410 Hardware Product, the Work
Product or the Next Generation Product) of indemnitor furnished hereunder
infringe a patent, trademark, copyright, mask work, trade secret or other
intellectual property right of the third party.
(ii) Voxware
shall be the indemnitor and LXE shall be the indemnitee regarding any claim
that
the 410 Technology or the 410 Hardware Product as provided by Voxware infringes
a patent, trademark, copyright, mask work, trade secret or other intellectual
property right of the third party.
(iii) LXE
shall
be the indemnitor and Voxware shall be the indemnitee regarding any claim that
the Work Product or the Next Generation Branded Product as provided by LXE
infringes a patent, trademark, copyright, mask work, trade secret or other
intellectual property right of the third party.
(iv) The
indemnitor made any untrue or unsupportable oral or written statements or
warranties regarding any Product that is not contained within the Supplier’s
written documentation.
(v) The
indemnitor caused, in whole or in part, directly or indirectly, personal injury
or damage to real or personal property.
b. The
indemnitor shall pay all costs and damages based on any such claim awarded
following appeal, if any. In the defense or settlement of any claim alleging
intellectual property infringement, the indemnitor may obtain for the indemnitee
the right to continue using the accused Products, replace or modify the accused
Products so that they become non-infringing or, if such remedies are not
reasonably available, grant the indemnitee a credit for the accused Products
as
depreciated and accept their return if provided by the indemnitor.
c. The
indemnitor shall not have any indemnification liability under this Section
for
any alleged intellectual property infringement that is based upon (a) the use
or
sale of the accused Products or other items in combination with other products
or devices not furnished by the indemnitor, (b) the use of the accused Products
or other items in a manner for which they were not designed, or (c) any
unauthorized modification of the Products or other item.
d. Indemnification
under this Section is conditioned on the indemnitee providing prompt written
notice to the indemnitor and tendering defense of the claim to the indemnitor.
The indemnitor shall have control of the defense or settlement of any claim,
provided that the indemnitor shall have no right to admit liability on the
part
of the indemnitee. The indemnitee shall reasonably cooperate in the defense
or
settlement of the claim at the indemnitor’s cost and expense. The indemnitee
shall be entitled to retain its own counsel at the indemnitee’s own expense to
participate in the defense or settlement of the claim in an advisory
capacity.
e. NOTWITHSTANDING
THE ABOVE, INDEMNITOR SHALL NOT BE LIABLE FOR LOSSES TO THE EXTENT THAT SUCH
LOSSES ARE CAUSED BY INDEMNITEE’S NEGLIGENCE OR INTENTIONAL ACTS.
15. Term
and Termination.
a. Term.
This
Agreement is effective on the Effective Date and shall remain in effect for
an
initial period of five years (“Initial Term”), and shall automatically renew for
additional periods of one year each (each, a “Renewal Term” together with the
Initial Term, “Term”).
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
16
b. Termination
for Convenience.
This
Agreement may be terminated by either party upon no less than ***** written
notice to the other party effective only as of the end of the Initial Term
or
any Renewal Term.
c. Termination
for Material Breach.
Either
party may terminate this Agreement if the other party “materially breaches” this
Agreement and fails to cure such breach within ***** of notice of such breach
by
the non-breaching party. For purposes of clarity, “material breaches” by (i)
Voxware shall include, but not be limited to, a breach of Section 4(a)(iii),
or
(ii) LXE shall include, but not be limited to, a breach of Sections 4(c) or
4(f).
d. Bankruptcy.
(i) If
either
party files a petition in bankruptcy or makes an assignment for the benefit
of
creditors or if any involuntary petition in bankruptcy or petition for an
arrangement of debts is entered in a court or consented to by either of the
parties or a receiver is appointed for the business of either party, or any
part
thereof, and the said involuntary petition or petition for an arrangement or
appointment of a receiver is not vacated or discharged within ***** or if either
party discontinues its operations for any reason whatsoever, the other party
may
immediately terminate this Agreement upon notice to such party.
(ii) This
Agreement is executory in nature and so long as Reseller has any continuing
obligations hereunder, Supplier of Licensed Software shall be entitled to
protect the source code and object code of the Licensed Software by impounding
in the event of the bankruptcy of the Reseller. No trustee, receiver or debtor
in possession may retain the Supplier’s Licensed Software (in any form) or sell
or re-license any Licensed Software, unless all of the provisions of 11 U.S.C
Section 365 of the United States Bankruptcy Act have been complied with and
the
Supplier of the Licensed Software is adequately protected. Similarly, Section
365(n) of the U.S. Bankruptcy Act applies in the event of any bankruptcy of
the
Supplier.
16. Effect
of Termination or Expiration.
Upon
the
termination of this Agreement for any reason, the following shall
occur:
a. All
rights, licenses, privileges and obligations granted or received by the parties
under this Agreement shall immediately cease and terminate, except as
specifically preserved, extended or imposed by this Section.
b. The
Reseller may continue to sell unsold inventories of the Supplier’s Products in
Reseller’s possession at the time of termination in accordance with the terms
and conditions of the Agreement. Except in cases where this Agreement is
terminated by one party for breach of this Agreement by the other party, for
a
period of ***** after such termination, Supplier agrees to process Reseller’s
orders for Supplier’s Products that relate to Reseller’s quotations with
Prospective Customers that were issued prior to termination.
c. Following
Reseller’s sale or disposition of any Supplier Products remaining in inventory
at the time of termination, Reseller shall cease to use any of Supplier’s
Trademarks and shall, within a reasonable period of time, remove any reference
to Supplier from its advertising and promotional material, including the
Reseller’s web site.
d. Any
monies due and payable according to the terms of this Agreement shall be paid
within 30 days of the termination of this Agreement.
e. Reseller
shall return to Supplier all unused advertising and promotional materials for
Supplier’s Products in the possession of Reseller which are not obsolete and in
their original packaging and otherwise dispose of as Supplier may direct, all
sales manuals, price lists, data sheets, technical materials, advertising
materials, and other data relating to the Supplier Products or Supplier that
may
have been furnished to Reseller.
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
17
f. Neither
party hereto shall be liable to the other party for damages, losses, indemnity,
compensation, costs or expenses of any kind or character whatsoever on account
of the expiration or termination of this Agreement, whether such damages,
losses, costs or expenses arise from the loss of Prospective sales, or expenses
incurred or investments made in connection with the establishment, development
or maintenance of the Reseller’s or Supplier’s business, creation of goodwill,
markets and customers for the Products or any other reason whatsoever.
Notwithstanding anything to the contrary contained herein, such expiration
or
termination shall not affect any claim, demand, liability or right (a) of the
Reseller or Supplier arising pursuant to this Agreement prior to the expiration
or termination hereof, or (b) of Supplier arising after expiration or
termination in connection with the sale by the Reseller of its remaining
inventory of the Products or in connection with a breach of any other term
which
survives the termination of this Agreement.
17. Regulatory
Approvals/Reporting/Export.
a. Regulatory
Approvals. The
Reseller shall undertake to assist Supplier in acquiring all necessary
regulatory or other approvals for engaging in the sale, delivery, connection
and
use of the Supplier Products within the Territory. All such approvals will,
to
the extent permitted by law, be obtained in the name of and on behalf of
Supplier, and, in each instance where a Product approval may not under law
be
obtained in the name of and on behalf of Supplier, the Reseller shall arrange
to
secure the agreement of the holder of such Product approval to transfer such
approval to the nominee designated by Supplier from time to time upon the advice
of the Reseller. The Reseller shall provide Supplier with copies of all
applications for approval submitted by the Reseller and documentation submitted
or prepared in connection therewith.
b. Governmental
Reporting Requirements.
The Reseller shall provide to Supplier all assistance necessary to prepare
and
file any report or other document required by any governmental agency or body
within the Territory and shall, at Supplier’s request, prepare and file any such
report or document on behalf of Supplier, and provide Supplier promptly with
copies of any such report or document.
c. Export.
(i) Reseller
agrees to fully comply with all applicable laws and regulations concerning
its
import, export or re-export of the Products or technical data related thereto,
including, without limitation, the U.S. Export Administration Regulations and
the U.S. International Traffic in Arms Regulations. The Reseller further agrees
to provide Supplier with such assurances and certifications as to the Reseller’s
activities as Supplier may reasonably request in compliance with such laws
and
regulations.
(ii) Supplier
has no obligation to seek any such license, certificate or approval of the
import, export or re-export of the Products or technical data related thereto,
and the Reseller is not authorized to seek the same on Supplier’s behalf.
Supplier has no obligation under this Agreement to provide the Reseller guidance
on the Reseller’s export or re-export of Supplier Products or related technical
data even if Supplier may do so from time-to-time as a convenience to the
Reseller or for any other reason.
(iii) Supplier
has no obligation to deliver to the Reseller any Product or related technical
data as to which necessary export licenses, certificates and approvals for
export from the Supplier Shipping Point have not been received by Supplier.
Supplier shall have no duty to modify any Products or related technical data
to
render them suitable for any export or re-export license, certificate or
approval whether sought by Supplier or the Reseller.
18. Records;
Audit Rights.
a. Each
party shall maintain all records that are necessary to reasonably enable an
auditor to verify compliance with this Agreement (“Records”) during the Term and
for ***** thereafter.
b. Upon
reasonable prior notice, each party (“audited party”) shall permit the other
party (“auditing party”) or its authorized representatives to:
(i) Audit
the
audited party’s use of the Supplier’s Products to ensure the audited party’s
compliance with the terms and conditions of this Agreement.
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
18
(ii) Voxware
may audit LXE’s Xxxx of Materials, Labor Costs and related costs and expenses
for the 410 Hardware Product and the Next Generation Product no more than once
per calendar quarter, provided, that Voxware shall be allowed to conduct an
additional audit in such ***** in the event it finds that LXE is not in
compliance with this Agreement.
(iii) Voxware
may audit LXE’s Records to determine compliance of Sections 6.f., 6.g. and 6.h.
no more than once *****, provided, that Voxware shall be allowed to conduct
an
additional audit in such ***** in the event it finds that LXE is not in
compliance with this Agreement.
(iv) Inspect
all books, records and accounts of audited party which pertain or relate in
any
way to the distribution of the Supplier Products.
c. The
audit
shall be conducted during normal business hours, in such a manner as to minimize
any interference with the conduct of audited party’s business, and in compliance
with the audited party’s reasonable security, safety, and confidentiality
requirements. The audited party shall make the Records available at such
location as shall be reasonably designated by audited party and as reasonably
required to conduct the audit on a timely basis.
d. The
auditing party bears the expense of the audit. If any such examination reveals
that the audited party has failed at any time to comply with any provision
of
this Agreement: (1) The auditing party shall provide to the audited party a
notice identifying such noncompliance and setting forth the auditing party’s
reasonable estimate of the damages resulting from such noncompliance and, if
the
damages exceed ***** of the fees or other amounts paid to audited party over
the
period of the noncompliance, the audited party shall reimburse the auditing
party the cost of performing such audit; and (B) the audited party shall,
immediately upon receipt of such notice, pay to the auditing party the amount
of
such damages, plus interest on the amount of such damages at the rate of *****
per month (or, if lower, the maximum rate permitted by law) from the date on
which the correct amounts of money should have been paid to audited party
through the date on which such damages are actually paid to the auditing
party.
19. Trademarks,
Trade Names and Related Matters
a. Authorization.
Reseller may refer to itself within the Territory during the Term as an
Authorized Reseller for Supplier Products, solely in connection with the
Products purchased or otherwise acquired from Supplier under this Agreement.
b. Restrictions.
No
rights are granted to Reseller to use Supplier’s Trademarks in connection with
the Products, except as provided in this Agreement, and except for the limited
permission for Reseller to use Supplier’s Trademarks solely to identify Products
purchased from Supplier under this Agreement and to do so only within the
Territory. Reseller shall provide to Supplier, for prior review, all
promotional, advertising and other materials using or displaying any Trademark
or trade name of Supplier or third parties used in connection with the Products
or referring to the Reseller as an authorized reseller of Supplier, unless
such
materials and uses are reasonably within the then-current Supplier Trademark
guidelines, a current version of which is set forth in Appendices C-1 (for
LXE)
and C-2 (for Voxware) attached hereto, which each Supplier may unilaterally
change in its sole discretion from time to time. Reseller agrees to change
or
correct, at Reseller’s expense, any such material or use thereof which Supplier,
in its sole judgment, determines to be inaccurate, objectionable, misleading,
or
a misuse of the Supplier’s Trademarks. Reseller agrees to comply with any
reasonable advertising guidelines that Supplier may issue from time to
time.
c. Specific
Products.
The
parties agree that certain Products will bear the following Primary Branding
and
Secondary Branding:
(i) All
410
Hardware Products manufactured by LXE for sale by Voxware shall bear the Primary
Branding of Voxware and shall be known as 410 Branded Product.
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
19
(ii) Branding
of Next Generation Products manufactured by LXE for sale by Voxware shall
contain the Primary Branding of Voxware and shall be known as Next Generation
Branded Product.
(iii) All
Licensed Software of Voxware that LXE distributes to third parties shall bear
the Primary Branding of LXE and a Secondary Branding of Voxware (e.g., “Powered
by Voxware”).
(iv) All
pouches holding 410 Hardware Products and Next Generation Products distributed
by LXE to third parties with the Browser shall contain Secondary Branding of
Voxware and the level of such Secondary Branding shall be agreed to in good
faith at a later time.
(v) All
Headsets provided by Voxware to LXE for use and resale by LXE will bear the
Primary Branding of LXE.
d. Termination.
The
permission granted relative to the Trademarks shall terminate with the
termination or expiration of this Agreement. Upon such termination or
expiration, Reseller shall immediately cease referring to itself as an
authorized reseller for the affected Products and shall immediately cease using
Trademarks and trade names of Supplier and of third parties in connection with
affected Products, except those on such Products which remain in Reseller’s
possession. Reseller shall also promptly return to Supplier or destroy all
materials in its possession or under its control employing such trademarks
or
trade names used in connection with the affected Products, except those
reasonably required to fulfill Reseller’s warranty service obligations, if any,
which materials will be returned to Supplier or destroyed upon completion of
such warranty obligations.
e. Goodwill.
Any and
all use of LXE’s Trademarks, and the goodwill generated thereby, shall inure to
the benefit of LXE. Any and all use of Voxware’s Trademarks, and the goodwill
generated thereby, shall inure to the benefit of Voxware. Any and all use of
a
third party’s Trademarks, and the goodwill generated thereby, shall inure to the
benefit of such third party. Reseller further agrees not to contest or take
any
action to contest the Trademarks of Supplier nor Supplier’s ownership thereof.
Reseller agrees not to use, employ or attempt to register any Trademarks that
are confusingly similar to the Trademarks of Supplier.
20. General
Provisions.
a. Notices.
Any
notices or other communication required by or relating to this Agreement shall
be in writing, and shall be deemed given as follows: (a) if delivered by hand
or
sent by facsimile, on the date of receipt, as confirmed by the courier or by
automatic facsimile confirmation; (b) if sent by cable, telegram, or telex,
on
the day following the day of sending; (c) if sent by certified or registered
mail, return receipt requested, with a copy sent by first class mail, on the
earlier of the date of receipt thereof or on the third day after mailing, in
each case to the address set forth below, subject to any address change provided
by notice given in such manner.
If
to LXE
|
If
to Voxware:
|
|
LXE
Inc.
000
Xxxxxxxxxx Xxxxxxx
Xxxxxxxx,
XX 00000 XXX
Attention:
Contracts and Legal Affairs
Facsimile:
(000) 000-0000
|
Voxware,
Inc.
000
Xxxxxxxx Xxxxxx Xxxx
Xxxxxxxxxxxxx,
XX 00000 XXX
Attention:
Office-of-the-CFO
Facsimile:
(000) 000-0000
|
b. Force
Majeure.
If
the
performance of this Agreement, or of any of the obligations specified herein,
is
prevented, delayed, or restricted by reason of any act of God, act of war,
or
any other cause beyond the reasonable control of the affected party, the party
so affected will be excused from performance for the duration of such cause,
provided that the party so affected will use its best efforts to notify the
other party and reasonable commercial efforts to avoid or remove the cause
of
non-performance and will resume performance with utmost dispatch whenever such
cause is removed. If such cause of non-performance continues for a period of
more than 30 days, the other party shall have the right to terminate this
Agreement, and the same shall not be a breach of this Agreement.
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
20
c. Agreement
Approval.
Each
party hereby represents and warrants that all necessary approvals for this
Agreement have been obtained, and the person whose signature appears below
has
the authority necessary to execute and deliver this Agreement on behalf of
the
party indicated.
d. Assignment.
Neither
party shall be relieved of any responsibilities or assign any rights or claims
under this Agreement or for breach thereof, without prior written consent of
the
other, and any such attempted relief of responsibility or assignment shall
be
void. Notwithstanding the foregoing, the acquisition or merger of either party,
or any of its affiliates or subsidiaries, shall not be deemed an assignment
under this Section.
e. Modifications.
No
modification of any of the terms and conditions of this Agreement shall be
effective unless such modification is expressed in writing and executed by
each
of the parties hereto.
f. Relationship
of Parties.
The
parties are acting herein as independent contracting parties. Nothing herein
shall create or be construed as creating a partnership, joint venture or agency
relationship between the parties, and no party shall have the authority to
bind
the other in any respect.
g. Governing
Law.
The
parties agree that this Agreement shall be governed by and construed in
accordance with the laws of the State of Georgia, without regard to Georgia’s
conflict and choice of law provisions. The
United Nations Convention on Contracts for the International Sale of Goods
shall
not apply to this Agreement or any transactions hereunder.
h. Dispute
Resolution.
(i) For
any
dispute arising under the Agreement that is not resolved informally, either
party may give to the other party written notice of the dispute and shall
include reasonable detail concerning the alleged deficiency in performance
of
the other party. The parties (including without limitation at least one officer
of each party) shall then meet in person at one of the party’s corporate offices
or other location mutually agreed upon and attempt in good faith to reach an
agreement resolving the dispute (such effort referred to as the “Internal
Mediation”). If the parties have not signed a written agreement to resolve the
dispute within 10 business days from the commencement of the Internal Mediation,
then either party may pursue arbitration as stated in this Section upon written
notice and within ten (10) business days after the conclusion of Internal
Mediation. Except as otherwise specifically provided, neither party shall
initiate arbitration unless and until the Internal Mediation procedures
described in this Section have been completed, or have been waived by both
parties.
(ii) Any
controversy or claim between the parties arising out of or relating to this
Agreement, or that may otherwise arise between the parties outside of this
Agreement that has not been resolved by the Internal Mediation will be
determined by binding arbitration pursuant to the Commercial Arbitration Rules
of the American Arbitration Association (the “AAA”). The arbitration shall be
heard by three (3) arbitrators in each case in which the aggregate amount in
controversy exceeds *****; otherwise the arbitration shall be heard by one
(1)
arbitrator. Each arbitrator must be disinterested, must be knowledgeable in
information technology, and experienced in commercial transactions. Each
arbitrator shall be appointed jointly by the parties within 60 days following
the date on which the arbitration is instituted. If the parties are unable
to
agree upon an arbitrator within such 60-day period, the AAA shall select such
arbitrator within 30 days thereafter. The arbitration hearings will be held
in
Washington, DC, which the parties have chosen as it is a large city between
the
headquarters of each of the parties, and should have a reasonably large pool
of
Prospective arbitrators.
(iii) Any
request for preliminary or injunctive relief shall be heard by the arbitration
panel. In the event that a party requests emergency or preliminary relief be
granted before the arbitrators are empanelled, then the AAA shall appoint one
arbitrator to immediately hear and decide such request pursuant to the Optional
Rules for Emergency Measures of Protection.
(iv) The
arbitral award will be final and binding, and may be entered and enforced in
any
court of competent jurisdiction. The arbitrator will not have the power to
award
any damages excluded by, or in excess of, any damage limitations expressed
in
this Agreement. Issues of arbitrability will be determined solely in accordance
with the federal substantive and procedural laws relating to arbitration; in
all
other respects, the arbitrator will be obligated to apply and follow the
substantive law of the State of Georgia without reference to its conflicts
of
laws provisions.
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
21
(v) Unless
the arbitration panel determines that a party has committed or has attempted
to
commit fraud, each party will bear its own attorneys’ fees and other costs
associated with the negotiation and arbitration under this Agreement, except
that the costs and expenses of the arbitrators shall be shared equally. If
court
proceedings to stay litigation or compel arbitration are necessary, the party
who unsuccessfully opposes such proceedings will reimburse and pay all
associated costs, expenses and attorneys’ fees that are reasonably incurred by
the other party.
(vi) In
order
to facilitate the resolution of any controversies or claims, the parties agree
that all such controversies or claims, including any negotiations, evidence
and
settlement terms, shall be treated as Confidential Information under the
confidentiality provisions of this Agreement and the NDA, except that the award
entered in any court need not be filed under seal.
i. Severability.
The
provisions of this Agreement are severable, and the unenforceability of any
provision of this Agreement shall not affect the enforceability of the remainder
of this Agreement. In the event that any court of competent jurisdiction holds
or rules that any provision of this Agreement is invalid or unenforceable in
any
circumstances, to the extent legally permissible, this Agreement shall be
construed and enforced to most closely reflect the parties’ intentions, and the
remainder of this Agreement, and the application of such provision in any other
circumstances, will not be affected by such holding or ruling.
j. Waiver.
Either
party’s failure to exercise any of its rights under this Agreement shall not
constitute a waiver of any past, present or future right or remedy.
k. Retention
of Rights.
Except
as specifically provided herein, neither party shall obtain, by this Agreement,
any right, title or interest in or to any Intellectual Property Rights embodied
in the Products and sub-assemblies thereof manufactured by, or on behalf of,
the
other party, nor shall this Agreement give either party the right to use, refer
to, or incorporate in any way or form such Intellectual Property Rights of
the
other party.
l. Captions.
The
captions used in this Agreement are for convenience only and shall not affect
in
any way the meaning or interpretation of the provisions set forth
herein.
m. Survival.
Sections 6.l, 6.m, 10.b,
10.d,
10.e,
11,
12,
13,
14,
16,
18,
19.d
and
20,
the
obligation to pay any accrued amounts, and any provisions necessary to construe
a party’s legal rights after termination, shall survive the termination,
cancellation or expiration of this Agreement.
n. Entire
Agreement.
This
Agreement shall constitute the final, complete and exclusive written expression
of the intentions of the parties hereto and shall supersede all previous
communications, representations, agreements, promises, or statements, either
oral or written, by either party. Except
as
provided herein, this
Agreement may be amended only in writing signed by each of the parties hereto.
No other terms and conditions, including any terms and conditions stated on
any
Purchase Order or any document(s) accompanying such Purchase Order, shall be
applicable except as otherwise provided herein.
[SIGNATURE
PAGE FOLLOWS]
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
22
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by
their duly authorized representatives as of the date first above written.
VOXWARE,
INC. LXE
INC.
By: /s/
Xxxxxx X. Xxxxx,
Xx. By: /s/
Xxxxx
X.
Childress
Name
Printed: Xxxxxx
X.
Xxxxx,
Xx. Name
Printed: Xxxxx
X.
Childress
Title: President
and Chief Executive
Officer Title: President
and General
Manager
Execution
Copy—September
26, 2005
***** Portion
for which confidential treatment requested.
23
Appendix
A
LXE
Pricing to Voxware for the 410 Branded Products and
the Next Generation Branded Products
In
accordance with Section 6.a, pricing for the 410 Hardware Products is as
follows:
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Pricing
methodology for the Next Generation Branded Products is the same as that for
the
410 Branded Products, with certain changes to the computation as stated in
Section 6.b.
All
410
Branded Products and Next Generation Branded Products (except batteries) shall
have a ***** Hardware Warranty from date of shipment from Voxware to Customer,
or ***** from date of shipment from LXE to Voxware, whichever is
shorter.
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Appendix
B: Voxware Pricing to LXE
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Appendix
C-1:
Voxware’s
Trademark Guidelines
Voxware
Trademarks:
POWERED
BY VOXWARE™
VOXWARE®
VOICELOGISTICS®
The
corporate colors are PMS 280 Navy Blue and PMS 109 Gold.
Voxware
will update its web page with any Trademarks or trade name changes, additions
or
deletions. LXE may review the most current Trademark or trade name data at
xxx.xxxxxxx.xxx.
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Appendix
C-2:
LXE’s
Trademark Guidelines
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Appendix
D: Voxware Customers
and Prospective Customers
Entities
with an * denote a Voxware Prospective Customer. All other entities are Voxware
Customers.
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Appendix
E: 410 Technology
· |
specifications,
work-papers, design documents, and designer’s notes and instructions
related to the 410 Product
|
· |
design
drawings; design spec's of any kind and of any discipline that
indicates the expected behavior of the 410 Product and its
components
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· |
test
plans & procedures including any source code and compile
information necessary to generate runtime tests of the 410
Product
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test
results of any kind and of any discipline that backs up the expected
behavior as well as indicates typical behavior of the 410
Product
|
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test
agencies certifications related to the 410
Product
|
· |
process
details related to the 410 Product
|
· |
Computer
Aided Design Files in DxDesigner format for all Printed Circuit Board
Schematics relate to the 410 Product; if DxDesigner files are not
available, then: (a) Computer Aided Design Files in DXF format
for all Schematics for the 410 Product; (b) Design Drawings in PDF
format
for all Schematics for the 410
Product.
|
· |
Computer
aided design files in PADS format for all Printed Circuit Boards
for the
410 Product; If PADS files are not available, then (a) Computer
Aided Design Files in ASCII format for all Printed Circuit Boards
for the
410 Product (b) Computer Aided Design Files in DXF format for all
Printed
Circuit boards for the 410 Product (c) Computer Aided Design Files in
GERBER format for all Printed Circuit boards for the 410 Product
(d) Design Drawings in PDF format for all Printed Circuit boards
for the 410 Product.
|
· |
Computer
aided design files in Pro/Engineer format for all mechanical parts
of the
410 Product; if Pro/Engineer files are not available, then:
(a) computer aided design files in Step format for all mechanical
parts of the 410 Product (b) computer aided design files in IGES
format for all mechanical parts of the 410 Product (c) computer
aided design files in DXF format for all mechanical parts of the 410
Product (d) design drawings in PDF format for all
mechanical parts of 410 Product.
|
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Appendix
F: Next Generation Product Specifications
To
be
agreed to and attached hereto.
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