LIFECOMM MOBILE PERS TECHNOLOGY VALUE ADDED RESELLER AGREEMENT
EXHIBIT 10.2
EXECUTION VERSION
REDACTED COPY
LIFECOMM MOBILE PERS TECHNOLOGY
This Value Added Reseller Agreement ("Agreement"), is made and entered into as of the 12th day of May, 2010 (the "Effective Date") by and between American Medical Alert Corporation ("AMAC"), a New York corporation, having a principal place of business at 0000 Xxxxxx Xxxxxxxxx, Xxxxxxxxx, Xxx Xxxx 00000, and LIFECOMM LLC, ("LIFECOMM”), a Delaware limited liability company, having a principal place of business at 0000 Xxxxxx Xxxxxxxxx, Xxxxx 0000, Xxxxxxx,
XX 00000.
1.1 “Affiliate” means any entity that controls, is controlled by, or is under common control with the relevant entity, where “control” means ownership of more than fifty percent (50%) of the voting power of the outstanding voting securities of an entity.
1.2 “AMAC Bundle” means a bundle of components sold by LIFECOMM to AMAC including a Device, the LIFECOMM Connectivity Service and the LIFECOMM Web Applications Services (and excluding the EACC, which will be provided by AMAC), including any [***].
1.3 “Approved Use” means to provide a Mobile PERS Solution.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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1.4 “Change of Control” means, with respect to a Party, the occurrence of any of the following events: (a) any consolidation or merger of a Party with or into any other entity in which the holders of such Party's outstanding shares immediately before such consolidation or merger do not immediately after such consolidation or merger, retain stock representing a majority of the voting power of the surviving entity or stock representing a majority of the voting power of an entity that wholly owns, directly or indirectly, the surviving entity; (b) the sale, transfer, or assignment of securities to an acquiring party or group, following
which the holders of such Party's outstanding shares immediately before such sale do not, immediately after such sale, retain securities representing a majority of the voting power of such Party; or (c) the sale of all or substantially all of such Party’s assets.
1.5 “Client” means any end user or subscriber to whom AMAC sells, leases or distributes the Product, whether directly or through third party distribution channels, as further provided in Section 2.1.
1.6 “Competitor of LIFECOMM” means any entity that offers a mobile [***] personal emergency response service substantially similar to the Business (as defined below), and whose [***] is specifically [***] in the Territory. For the avoidance of doubt, a Competitor of LIFECOMM shall not include a [***] Company’s mobile cellular personal emergency response products or services. Solely for purposes of
this definition of “Competitor of LIFECOMM”, “Business” means developing the elements of, and [***]
1.7 “Designated Channel” means any of the third-party distribution channels or entities listed in Attachment A, as may be amended from time to time upon the mutual written agreement of the Parties.
1.8 “Device” means a LIFECOMM mobile, wireless, cellular communications enabled wearable device developed under the auspices of, and funded by, LIFECOMM that exhibits a PERS feature set and is fully compatible and fully tested with the other Mobile PERS Solution components offered by LIFECOMM. [***]
1.9 “Distributor” means a person or entity that sells, leases or distributes, as the context dictates, the proprietary “LIFECOMM Mobile PERS Solution" to end users but adds no value to the applicable Mobile PERS Solution.
1.10 “Emergency Assistance Call Center” or “EACC” means any telephony center that serves as the venue of contact and monitoring for, and dispatching assistance to, end users of a Mobile PERS Solution. EACC can also refer to a voice operations center that provides a full range of inbound and/or outbound call-handling services, including customer support, operator/concierge services, nurse triage, assistance, multilingual customer support, member services, card services, inbound and outbound telemarketing, interactive voice response and web-based services.
1.11 “Intellectual Property Rights” means all present and future worldwide copyrights, trademarks, trade secrets, patents, patent applications, mask work rights, moral rights, contract rights, and other proprietary rights recognized by the laws of any country.
1.12 “LIFECOMM Marks” means the trademarks and trade names of LIFECOMM listed in Attachment B (as such list may be updated from time to time by LIFECOMM upon notice to AMAC).
1.13 “LIFECOMM Mobile PERS API” means the application-programming interface to the LIFECOMM components furnished to AMAC by LIFECOMM.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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1.14 “LIFECOMM Mobile PERS Solution” means the complete, end-to-end LIFECOMM branded Mobile PERS Solution sold, leased or distributed by LIFECOMM to end users directly or indirectly through Distributors. It is a proprietary solution comprised of a LIFECOMM Device, the LIFECOMM Connectivity Service, LIFECOMM Web Applications Services and an EACC of LIFECOMM’s choosing.
1.15 “LIFECOMM Enterprise Portal” means a web-based interface designed for enterprise use that may be used to submit orders for Devices and the LIFECOMM Connectivity Service, and to activate, deactivate, test, and obtain usage reports regarding the LIFECOMM Connectivity Service.
1.16 “LIFECOMM User Portal” means a web-based interface designed for end user use that may be used to perform a variety of functions such as tracking the location of the device (using included mapping software), entering and modifying personal health data, and setting up alerts.
1.17 “LIFECOMM EACC Portal” means a web-based interface designed for use by an EACC that permits EACC personnel to interact with the other elements of the Mobile PERS Solution in order to provide EACC service to end users.
1.18 “Mobile PERS Solution” means a specific mobile PERS solution implementation that includes a specific wearable wireless mobile device, a specific EACC, a specific web applications services configuration, and a specific connectivity service configuration that enables communication between such device, and the web applications service and the EACC.
1.19 “LIFECOMM Connectivity Service" means the entire infrastructure necessary to connect a Mobile PERS Device to an EACC, including but not limited to the Wireless Carrier cellular network that enables two-way voice and data (including SMS) communication either directly or indirectly between the Devices and an EACC over a nationwide wireless network, on which LIFECOMM has the contractual right to provision Devices and use the bearer services. It also includes all other communications related elements such as routers, servers, frame relays, wireline or fiber optical infrastructure, as well as the device provisioning platform to enable Mobile
PERS devices on the Wireless Carrier network, [***] all billing information elements, and any operations monitoring and reporting functions.
1.20 “LIFECOMM Web Applications Services" means the web application services operated by LIFECOMM, which includes the LIFECOMM Enterprise Portal, the LIFECOMM User Portal and the LIFECOMM EACC Portal.
1.21 “PERS” means a personal emergency response system, which consists of the complete system of elements necessary to permit an end user to (a) summon emergency medical and/or personal assistance; (b) summon non-emergency assistance; (c) obtain emergency assistance from dedicated personnel; and (d) request additional service and/or information from a live operator or through interactive voice response technology.
1.22 “Product” means that specific Mobile PERS Solution configuration comprised of AMAC’s EACC and other AMAC proprietary elements combined with the AMAC Bundle, as bundled together and sold, leased or distributed by AMAC both directly and indirectly through distributors and other third party distribution channels.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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1.23 “Product Launch Date” means the date that is earlier to occur of: (a) the actual date of the first commercial shipment of the Product to a Client by AMAC or (b) the date that is ninety (90) days after LIFECOMM notifies AMAC that the AMAC Bundle is available for commercial operation pursuant to the terms and conditions set forth in this Agreement; provided, that AMAC is not then contesting in good faith that any component, or all components, of the AMAC Bundle are sufficiently functional and stable for commercial operation.
1.24 “Territory” means the United States of America, including Alaska and Hawaii, the U.S. Virgin Islands and Puerto Rico.
1.25 “User Documentation” means any and all documentation prepared by LIFECOMM, including user instructions, any terms and conditions, or other packaging pertaining to a Device and Web Application Services, and furnished to AMAC for distribution along with the Product, in either electronic or hardcopy form. Device User Documentation will be hardcopy and LIFECOMM Web Application Services will be electronic.
1.26 [***]
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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b) LIFECOMM will maintain commercial property, casualty and liability insurance in an amount no less than [***] All liability insurance will designate AMAC as an additional insured, as its interests may appear, for any and all liability arising at any time in connection with LIFECOMM’s performance under this Agreement. All such insurance must be primary and require the issuer to respond and pay prior to any other available coverage. LIFECOMM will provide AMAC with certificates or adequate proof of the foregoing insurance within thirty (30) days after the Effective Date and such insurance policies or endorsements will entitle AMAC to receive notice at
least thirty (30) days prior to any cancellation (including for nonrenewal) or change.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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(b) Except for the LIFECOMM Mobile PERS API, LIFECOMM Web Application Services (which includes the LIFECOMM Enterprise, User, and EACC Portals), LIFECOMM Connectivity Service, all PERS products, solutions and services (including AMAC’s EACC), and all worldwide Intellectual Property Rights therein, heretofore or hereafter developed, marketed, sold or distributed by AMAC, shall remain the sole and exclusive property of AMAC. Neither LIFECOMM nor any of its Affiliates (other than AMAC, if AMAC becomes an Affiliate) shall acquire any rights, express or implied, in any such PERS products, solutions and services except as expressly set out in this Agreement. Nothing in this Agreement shall restrict in any
manner AMAC’s ability to operate its business, except as expressly set out in this Agreement.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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5.1 Order and Activation Process. AMAC may submit orders for and activate the LIFECOMM Connectivity Service as permitted under this Agreement using the LIFECOMM Enterprise Portal, in accordance with the documentation for the LIFECOMM Enterprise Portal and LIFECOMM’s then-current order processing procedures. The terms of this Agreement will govern all such orders submitted by AMAC to LIFECOMM, and no additional or inconsistent term or condition printed in any such order will have any legal effect. All such orders must specify the electronic serial number for each Device for which activation of the
cellular connectivity portion of the LIFECOMM Connectivity Service is ordered. All orders will be subject to acceptance by LIFECOMM.
(b) If the wireless services agreement between LIFECOMM and the Wireless Carrier terminates or expires for any reason, LIFECOMM will use commercially reasonable efforts to find a replacement Wireless Carrier to provide the cellular connectivity portion of the LIFECOMM Connectivity Service, and shall promptly notify AMAC of such termination or expiration so that AMAC may assist, as LIFECOMM and AMAC jointly deem appropriate, with finding a replacement Wireless Carrier.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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6. SUPPORT
6.1 [***]
6.2 [***]
7. FEES, PRICING, AND PAYMENT
7.1 Integration Costs. [***]
7.2 Pricing for Devices. The price paid to LIFECOMM by AMAC for each Device ordered shall be determined at the time the orders are placed subject to a quantity based pricing table to be provided to AMAC by LIFECOMM. Pricing shall be determined based [***]
7.3 Pricing for LIFECOMM Connectivity Service. LIFECOMM shall charge AMAC: (i) a [***] for the activation of each Device and the underlying LIFECOMM Connectivity Service; and (ii) a monthly fee for each active Device activated by AMAC as set forth on Attachment F.
7.4 Support Fees. If AMAC, on one or more instances, has not complied in all material respects with its obligations under Subsection 6.1 (First-Level Support by AMAC), AMAC will pay LIFECOMM monthly fees for the support services to be provided by LIFECOMM under Subsection 6.2 (Support for Devices, LIFECOMM User Portal, and LIFECOMM Connectivity Service), as specified in Attachment F [***]
7.5 Reports. Within fifteen (15) days after the end of each month, AMAC will provide LIFECOMM with a written report stating (i) the number of Devices and LIFECOMM Connectivity Service activations resold to Clients by AMAC or its third party distribution channels during such month; (ii) the identity and location of the Clients that received the Device and LIFECOMM Connectivity Service; and (iii) any other information that may be required to determine whether AMAC is paying the correct amount of fees.
7.6 Payments. AMAC will pay to LIFECOMM all fees required under Subsections 7.2 and 7.3 simultaneously with the report required under Subsection 7.5 (Reports), for the month in which such fees accrued. AMAC will pay LIFECOMM all other amounts due under this Agreement within [***] after the date of the invoice therefor. Any amount that is not paid when due will accrue interest at [***] per year or the maximum rate permitted by applicable law, whichever is less, from the due date until paid.
7.7 Taxes. AMAC will be responsible for and will indemnify and hold LIFECOMM harmless from payment of all taxes (other than taxes based on LIFECOMM’s income), fees, duties, and other governmental charges, and any related penalties and interest, arising from the payment of fees and royalties to LIFECOMM under this Agreement or the delivery or license of the Device, LIFECOMM Connectivity Service, Mobile PERS Web Application Services, or LIFECOMM Mobile PERS API to AMAC. AMAC will make all payments of fees and royalties to LIFECOMM free and clear of, and without reduction for, any withholding taxes; any such taxes
imposed on payments of fees and royalties to LIFECOMM will be AMAC’s sole responsibility, and AMAC will provide LIFECOMM with official receipts issued by the appropriate taxing authority, or such other evidence as the LIFECOMM may reasonably request, to establish that such taxes have been paid.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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7.8 Audits.
(a) LIFECOMM will have the right, during normal business hours and upon at least [***] prior notice, to have an independent audit firm, selected by LIFECOMM and reasonably acceptable to AMAC, inspect AMAC’s facilities and audit AMAC’s records relating to AMAC’s activities pursuant to this Agreement in order to verify that AMAC has paid to LIFECOMM the correct amounts owed under this Agreement and otherwise complied with the terms of this Agreement. The audit will be conducted at LIFECOMM’s expense, unless the audit reveals that AMAC has underpaid the amounts owed to LIFECOMM by [***] or more during the audited period, in which case AMAC will reimburse LIFECOMM for all reasonable costs and expenses incurred by LIFECOMM in connection with such audit. AMAC will promptly pay to LIFECOMM any amounts shown by any such audit to be owing plus interest as provided in Subsection 7.6 (Payments). Such audits will be conducted no more than [***] in any period of twelve consecutive months. Any confidential or proprietary information of AMAC or its customers disclosed to LIFECOMM or the independent accounting firm in the course of the audit will be subject to a confidentiality agreement reasonably acceptable to AMAC to be signed by LIFECOMM and such independent accounting
firm.
(b) AMAC will have the right, during normal business hours and upon at least [***] prior notice, to have an independent audit firm, selected by AMAC and reasonably acceptable to LIFECOMM, inspect LIFECOMM’s facilities and audit LIFECOMM’s records relating to LIFECOMM’s activities pursuant to this Agreement in order to verify that LIFECOMM has complied with the terms of this Agreement. The audit will be conducted at AMAC’s expense, unless the audit reveals that LIFECOMM has overcharged AMAC by [***] or more during the audited period, in which case
LIFECOMM will reimburse AMAC for all reasonable costs and expenses incurred by AMAC in connection with such audit. LIFECOMM will promptly pay to AMAC any amounts shown by any such audit to be owing plus interest as provided in Subsection 7.6 (Payments). Such audits will be conducted no more than [***] in any period of twelve consecutive months. Any confidential or proprietary information of LIFECOMM or its customers disclosed to AMAC or the independent accounting firm in the course of the audit will be subject to a confidentiality agreement reasonably acceptable to LIFECOMM to be signed by AMAC and such independent accounting firm.
7.9 [***]
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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12. INDEMNIFICATION
12.1 Indemnification by LIFECOMM.
(a) Infringement. LIFECOMM will defend at its own expense any action against AMAC brought by a third party to the extent that the action is based upon a claim that the Device or any other component of the AMAC Bundle infringes any copyrights or U.S. patents or misappropriates any trade secrets and LIFECOMM will pay those costs (including litigation costs and reasonable attorneys' fees) and damages finally awarded against AMAC in any such action, that are specifically attributable to such claim or those costs and damages agreed to in a monetary
settlement of such action. LIFECOMM further agrees to indemnify AMAC against any other costs and reasonable attorneys' fees incurred by AMAC, and its directors, officers, and employees in connection with such claim or action. The foregoing obligations are conditioned on AMAC notifying LIFECOMM promptly in writing of such action, AMAC giving LIFECOMM sole control of the defense thereof and any related settlement negotiations, and AMAC cooperating and, at LIFECOMM’s reasonable request and expense, assisting in such defense; provided that a resolution of any claim that requires an admission of liability from AMAC will require AMAC’s prior written consent; and further provided that if AMAC determines that LIFECOMM has abandoned the defense of any such claim, AMAC shall have the right, in its own behalf, to adjust, settle, defend or otherwise dispose of such claim, and LIFECOMM shall indemnify AMAC and its directors, officers, and employees against any costs and
damages (including reasonable attorneys' fees) incurred with respect thereto. If the Device or any other component of the AMAC Bundle becomes, or in LIFECOMM’s opinion is likely to become, the subject of an infringement claim, LIFECOMM may, at its option and expense, either (i) procure for AMAC the right to continue exercising the rights licensed to AMAC in this Agreement; or (ii) replace or modify the Device or other component of the AMAC Bundle, as applicable, so that it becomes non-infringing and remains functionally equivalent. This subsection states LIFECOMM’s entire liability and AMAC’s sole and exclusive remedy for infringement claims and actions.
(b) Other Indemnification. LIFECOMM will defend at its own expense any action against AMAC brought by a third party to the extent that the action is based on or arising from (i) the AMAC Bundle or any component thereof, or (ii) any libel, or slander based on the User Documentation or other written or electronic materials provided, or authorized in writing, by LIFECOMM, transmitted to Clients. LIFECOMM will pay those costs (including litigation costs and reasonable attorneys' fees) and damages finally awarded against AMAC in any such action, that are specifically attributable to such claim or those costs and damages
agreed to in a monetary settlement of such action that is approved by LIFECOMM. LIFECOMM further agrees to indemnify AMAC against any other costs and reasonable attorneys' fees incurred by AMAC, and its directors, officers, and employees in connection with such claim or action. The foregoing obligations are conditioned on AMAC notifying LIFECOMM promptly in writing of such action, AMAC giving LIFECOMM sole control of the defense thereof and any related settlement negotiations, and AMAC cooperating and, at LIFECOMM’s reasonable request and expense, assisting in such defense; provided that a resolution of any claim that requires an admission of liability from AMAC will require AMAC’s prior written consent; and further provided that if AMAC determines that LIFECOMM has abandoned the defense of any such claim, AMAC shall have the right, in its own behalf, to adjust, settle, defend or otherwise dispose of such claim, and LIFECOMM shall indemnify AMAC and its
directors, officers, and employees against any costs and damages (including reasonable attorneys' fees) incurred with respect thereto.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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(c) Limitations on Indemnification Obligation. Notwithstanding the foregoing, LIFECOMM will have no obligation under this subsection or otherwise with respect to any claim to the extent arising out of or resulting from (i) any unauthorized use or distribution of the AMAC Bundle by AMAC or any of its Clients; (ii) any use of the AMAC Bundle in combination with other products, equipment, software, or data not supplied by LIFECOMM that is not expressly specified in this Agreement or in the applicable User Documentation; (iii) any use or distribution of any release of the AMAC Bundle other than the most current release made available to AMAC; (iv) any unauthorized modification of the AMAC Bundle by any person other than LIFECOMM or its authorized contractors. or (v) any act or omission for which LIFECOMM would have an indemnification or other claim against AMAC under this Agreement.
12.2 Indemnification by AMAC. AMAC will defend at its own expense any action against LIFECOMM brought by a third party to the extent that the action is based on or arising from: (i) the EACC service or any other component of the service provided by AMAC as part of the Mobile PERS Solution that is the subject of the claim; (ii) any representations, warranties, guarantees, or other written or oral statements made by or on behalf of AMAC relating to the Devices or the LIFECOMM Connectivity Service other than as required, or authorized in writing, by the most senior executive of LIFECOMM or made in the User Documentation; (iii) any claims
against LIFECOMM made by Clients who receive the Devices or the LIFECOMM Connectivity Service from AMAC other than as part of a Mobile PERS Solution; (iv) any breach by a Client who receives the Devices or the LIFECOMM Connectivity Service from AMAC of the applicable Client Service Agreement or User Documentation ; (v) any failure of AMAC to have in place a binding Client Services Agreement; or (vi) any libel, slander, or infringement of copyright based on the written or electronic materials, other than the User Documentation or as otherwise authorized in writing by LIFECOMM, transmitted by AMAC to Clients. AMAC will pay those costs (including litigation costs and reasonable attorneys' fees) and damages finally awarded against LIFECOMM in any such action, that are specifically attributable to such claim or those costs and damages agreed to in a monetary settlement of such action that is
approved by AMAC. AMAC further agrees to indemnify LIFECOMM against any other costs and reasonable attorneys' fees incurred by LIFECOMM, and its directors, officers, and employees in connection with such claim or action. The foregoing obligations are conditioned on LIFECOMM notifying AMAC promptly in writing of such action, LIFECOMM giving AMAC sole control of the defense thereof and any related settlement negotiations, and LIFECOMM cooperating and, at AMAC’s reasonable request and expense, assisting in such defense; provided that a resolution of any claim that requires an admission of liability from LIFECOMM will require LIFECOMM’s prior written consent; and further provided that if LIFECOMM determines that AMAC has abandoned the defense of any such claim, LIFECOMM shall have the right, in its own behalf, to adjust, settle, defend or otherwise dispose of such claim, and AMAC shall indemnify LIFECOMM and its directors, officers, and employees against
any costs and damages (including reasonable attorneys' fees) incurred with respect thereto. Notwithstanding the foregoing, AMAC will have no obligation under this subsection or otherwise with respect to any claim to the extent arising out of or resulting from any act or omission for which AMAC would have an indemnification or other claim against LIFECOMM under this Agreement.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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(i) Subject to subclause (ii) of this Section 13.3(b), each Party (the “Non-breaching Party”) may terminate this Agreement, effective [***] (the “Termination Effective Date”) following delivery of a written notice of termination to the other Party (the “Breaching Party”), stating that that (1) the Breaching Party has breached a material provision of this Agreement and has not cured the breach within [***] after receiving written notice thereof from the Non-breaching Party and (2) this Agreement is being terminated pursuant to this Section 13.3(b).
(ii) Upon written demand by the Breaching Party, which demand must be delivered to the Non-breaching Party prior to the Termination Effective Date, the Parties shall submit such dispute giving rise to the written notice of termination of this Agreement to binding arbitration. In the event of any such written demand for arbitration by the Breaching Party, any termination of this Agreement pursuant to this Section 13.3(b) shall not be effective unless and until the arbitration proceedings have concluded and the arbitrator has determined that the alleged breach of a material provision of this Agreement has occurred and has not been cured within the applicable cure period
stated above. The arbitration shall be conducted before a single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association (AAA). The validity, construction, and interpretation of this Agreement to arbitrate under this Section 13.3(b), and all procedural aspects of the arbitration conducted pursuant to this Section 13.3(b) shall be decided by the arbitrator and shall be determined in accordance with the governing law of this Agreement. In deciding the substance of the Parties' claim(s), the arbitrator shall refer to the governing law of this Agreement. There shall be a stenographic transcription of the arbitration proceedings, the costs thereof to be shared equally by the Parties. It is agreed that the arbitrator shall have only the authority to determine whether or not the alleged breach of a material provision of this Agreement has occurred and has not been cured within the applicable
cure period stated above, and shall have no authority to award damages of any type under any circumstances whether or not such damages may be available under state or federal law, or under the Commercial Arbitration Rules of the American Arbitration Association, and the Parties hereby waive their right, if any, to recover any such damages. The arbitration proceeding shall be conducted in New York County, New York. Within [***] of the written demand of initiation of the arbitration procedure, the Parties shall select a neutral arbitrator, who shall be a person who has over ten years professional experience in commercial transactions of this nature and who has not previously been employed by any Party and does not have a direct or indirect interest in any Party or the subject matter of the arbitration. At the time of appointment, the arbitrator shall be required to undertake to issue a final decision
within [***] of the date of the initial demand for arbitration. Any arbitration proceeding and the arbitrator's determination shall be maintained in confidence by the parties, except to the extent disclosure is required by law or judicial proceeding having competent jurisdiction. Other than matters in which termination is sought by the Non-breaching Party pursuant to Section 13(b)(i), arbitration shall not be required except by written consent of the Parties.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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(d) Termination of [***] and Non-Compete for AMAC Change of Control Involving a Competitor. AMAC shall provide written notice to LIFECOMM no later than the effective time of a transaction resulting in a Change of Control of AMAC (the “Closing”). If the acquiring party or group, or surviving entity, in such Change of Control transaction is a Competitor of LIFECOMM, LIFECOMM may terminate the [***] and Non-Compete Commitment granted under Section 8 of this Agreement by giving written notice of such termination to AMAC, which termination shall be
effective immediately upon the later of the Closing or the date of the notice of termination delivered by LIFECOMM, and which termination shall not affect the balance of this Agreement. Subject to AMAC’s provision of sufficient information regarding such Change of Control transaction at LIFECOMM’s reasonable request, LIFECOMM agrees to notify AMAC whether it intends to exercise its termination right under this section no later than thirty (30) days after receipt of the initial written notice from AMAC describing such contemplated Change of Control transaction.
13.5 Survival. Sections 1, 3.3, 7.7, 9, 10, 11, 12, 13.4, 14, and any payment obligations incurred prior to expiration or termination of this Agreement will survive such expiration or termination.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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Notwithstanding the foregoing paragraph, the parties acknowledge that this Agreement, or portions thereof, and schedules thereto, and descriptions of any of the foregoing, may be required under applicable law or regulation to be disclosed in required public disclosure documents, or exhibits thereto, of AMAC filed with the United States Securities and Exchange Commission (the “SEC”) or any securities exchange on which its securities are listed for trading. Prior to such disclosure, AMAC will inform LIFECOMM in writing and will use commercially reasonable efforts to seek approval from the SEC or other applicable regulatory authority for the confidential treatment of certain confidential information identified by the parties.
14.2 Governing Law and Venue. This Agreement and any action related thereto will be governed and interpreted by and under the laws of the State of New York, without giving effect to any conflicts of laws principles that require the application of the law of a different state. Except as required by Section 13(b)(ii), any legal action or proceeding concerning the validity, interpretation and enforcement of this Agreement, matters arising out of or related to this Agreement or its making, performance or breach, or related matters shall be brought exclusively in the courts of the State of New York in the County of New York or of the
United States of America for the Southern District of New York, and all parties consent to the exclusive jurisdiction of those courts, waiving any objection to the propriety or convenience of such venues. The United Nations Convention on Contracts for the International Sale of Goods does not apply to this Agreement.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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LIFECOMM
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AMERICAN MEDICAL ALERT CORPORATION
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By: /s/ Xxxxxxx X. Xxxxx
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By: /s/ Xxxx Rhian
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Print Name: Xxxxxxx X. Xxxxx
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Print Name: Xxxx Rhian
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Title: CEO
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Title: CEO
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Date: May 12, 2010
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Date: May 12, 2010
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[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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ATTACHMENT A
DESIGNATED CHANNELS
[*** eleven pages omitted]
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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ATTACHMENT B
LIFECOMM MARKS
LIFECOMM LLC
xxx.XXXXXXXX.xxx
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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ATTACHMENT C
STATEMENT OF WORK
Statement of Work No. ___
This Statement of Work No. ____ (this “Statement of Work”), effective as of ___________, 2010, is entered into by and between LIFECOMM LLC (“LIFECOMM”) and American Medical Alert Corporation (“AMAC”). This Statement of Work is a part of and subject to the terms and conditions set forth in the Services Agreement, dated as of __________ 2010, between LIFECOMM and AMAC.
1. Scope of Work
2. Deliverables
A. Deliverable Work Product
B. Non-Assignable Deliverable Work Product IP Rights
4. Names and Titles of Individuals Performing Services
5. Other Provisions
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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ATTACHMENT D
WIRELESS NETWORK TERMS
Brownouts. AMAC acknowledges and agrees that Brownouts may be put in place by the Wireless Carrier and Roaming Carriers from time to time in the provision of the cellular connectivity portion of the LIFECOMM Connectivity Service and the Roaming Carrier’s CMRS and/or Data Service, or PIN codes may be required by the Roaming Carrier. The Wireless Carrier may implement a Brownout in the Territory. LIFECOMM will endeavor to promptly provide AMAC with notice after the commencement or occurrence of any Brownout, but LIFECOMM’s failure to provide such notice will not be considered a breach of its obligation under this Agreement.
Interference. AMAC shall assist LIFECOMM and the Wireless Carrier in taking all actions necessary as determined by the Wireless Carrier in its sole discretion to prevent and/or terminate actual or potential Interference with Facilities, Systems and/or the cellular connectivity portion of the LIFECOMM Connectivity Service. “Interference” shall mean causing actual or potential harm to the Facilities, Systems, LIFECOMM Connectivity Service or the performance metrics of the Wireless Carrier Facilities or Systems, and includes Fraudulent Usage. Such harm may include, but shall not be limited to the (i) disproportionate use of the Wireless Carrier Facilities’ resources, air link, backbone network, (ii) any use
that adversely affects the performance metrics, as determined by the Wireless Carrier, of Facilities, Systems or LIFECOMM Connectivity Service, or (iii) the impairment of the quality of LIFECOMM Connectivity Service provided to End Users or any Customer. In the event that there is Interference, AMAC shall immediately cease such Interference or promptly order the End User to cease from engaging in such act(s) of Interference. In the extent that such Interference continues despite the above, LIFECOMM shall have the right to discontinue the cellular connectivity portion of the LIFECOMM Connectivity Service to that End User or the MDN assigned thereto and/or deny AMAC’s access to Systems (in the case of Interference to Systems, in accordance with an applicable System policy), and LIFECOMM shall provide AMAC with written notification of such discontinuance promptly thereafter. AMAC shall assist LIFECOMM in taking all actions necessary to prevent
further Interference. In the event LIFECOMM or the Wireless Carrier determines the Interference is adverse to Facilities, Systems or the cellular connectivity portion of the LIFECOMM Connectivity Service, LIFECOMM and the Wireless Carrier reserve the right to suspend any new Activation of Interfering Equipment.
Area Code Relief. The parties agree to cooperate in good faith to implement any area code relief in a given Territory. LIFECOMM may provide notice, if and as available, of any area code relief. AMAC shall reprogram the Equipment and may be required to notify affected End Users of any changes in MDNs. Any failure by AMAC to comply with such obligations may adversely affect AMAC’s ability to provide LIFECOMM Connectivity Service or to timely xxxx End Users, but the Wireless Carrier shall still invoice AMAC, and AMAC shall still be obligated to pay for any LIFECOMM Connectivity Service or Roaming used after the area code relief. AMAC is responsible for obtaining area code information from NANPA
(xxx.xxxxx.xxx) or the applicable state public utility commission website.
Radio Frequency (RF) Enhancer. AMAC shall not install, deploy, or use any regeneration equipment or similar mechanism (for example, a repeater) to originate, amplify, enhance, retransmit or regenerate a transmitted RF signal.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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Wireless Carrier’s Right To Modify Rates, Charges, Fees and Other Amounts.
AMAC hereby acknowledges and agrees that the Wireless Carrier may change, introduce, terminate, add, adjust, and/or modify, any and all “non-Wireless Carrier” rates (e.g. Roaming), Taxes, charges, fees, tables, charts, discounts, and/or the qualification requirements (if any, for such items) upon [***] prior notice to LIFECOMM, in which case LIFECOMM may make a corresponding change to the rates, taxes, charges, fees, tables, charts, discounts and/or the qualification requirements upon [***] prior notice. AMAC acknowledges and agrees that any such change, termination, adjustment and/or modification shall apply to all Active MDNs hereunder, except as expressly provided by LIFECOMM
in the notice required under this paragraph.
Wireless Carrier’s Right to Modify Business Practices. This Agreement is subject to all applicable business practices, policies, and procedures of the Wireless Carrier of which AMAC has notice. Such procedures, policies and business practices may be modified or changed, or new business practices, policies and procedures introduced, at any time upon [***] notice, which may be provided by posting on the Wireless Carrier’s website (at an address to be provided by the Wireless Carrier) or written notice to AMAC via email, USPS, or courier service, provided, that such change may not materially modify, curtail or otherwise diminish the Wireless Carrier’s or AMAC’s
material obligations hereunder.
Facility Modifications. AMAC acknowledges that CMRS and Data Service is a rapidly changing industry and technology and as such neither LIFECOMM nor the Wireless Carrier shall be liable to AMAC or to AMAC's End Users if changes in any of the Facilities, Systems, operations, equipment, procedures, or LIFECOMM Connectivity Service render obsolete any Equipment, service, software and/or applications provided by AMAC to End Users in conjunction with use of the LIFECOMM Connectivity Service.
Privacy and Security of LIFECOMM Connectivity Service. AMAC acknowledges neither LIFECOMM, the Wireless Carrier, nor any of their Affiliates can guarantee the privacy or security of any transmission, including voice and/or data transmitted through the use of the cellular connectivity portion of the LIFECOMM Connectivity Service or Roaming.
Capacity Limitation. The parties recognize that unusual concentrations of the cellular connectivity portion of the LIFECOMM Connectivity Service usage may occur in certain locations. Neither LIFECOMM nor the Wireless Carrier shall incur liability for its inability to provide adequate LIFECOMM Connectivity Service hereunder if such liability is due to a lack of capacity on the Wireless Carrier Facilities or Carrier Facilities which results from the aforesaid usage concentration, and nothing herein shall require LIFECOMM or the Wireless Carrier to expend any capital or resources to ensure capacity for AMAC’s or its End Users' use of LIFECOMM Connectivity Service or Roaming.
AMAC agrees to and acknowledges the following: The CMRS and/or Data Service are subject to transmission limitations caused by atmospheric and like conditions. The cellular connectivity portion of the LIFECOMM Connectivity Service may be temporarily interrupted or curtailed due to government regulations, suspected fraudulent activities, network modifications, upgrades, relocations, repairs and similar activities necessary or appropriate for the proper or improved operation of the LIFECOMM Connectivity Service. The cellular connectivity portion of the LIFECOMM Connectivity Service is subject to network and transmission limitations, including cell site unavailability, particularly near boundaries and in remote areas. Equipment, weather, topography and other environmental
considerations also affect CMRS and/or Data Service and such CMRS and/or Data Service may vary significantly within buildings, or dependent upon the location of the Equipment. With digital-only Equipment the End User can only make and receive calls and/or transmit data when CDMA digital service is available. When CDMA digital service is not available, such Equipment will not be able to make and receive calls and/or transmit data of any kind.
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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ATTACHMENT E
MINIMUM CLIENT SERVICE TERMS
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Limitations of Service
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Our Coverage Area
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Disclaimer of Warranties
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Certain Other Limitations of the including Emergency Services and Our Need for Your Cooperation
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Additional Limitations and Prohibitions on Your Use of the Equipment, Service, and Website
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Your Responsibilities for Insuring and Maintaining Your Equipment and for Other Important Matters
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No Ownership Rights in any Numbers or Addresses
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Suspending; Terminating; Changing; Transferring and Reactivating the Service
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Dispute Resolution
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The Laws Governing Our Relationship
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Limitation of Liability
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Indemnification; Release
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Miscellaneous Terms
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Relationship Between Parties
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Third-Party Beneficiaries
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Other Provisions Required by Our Third Party Vendors
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[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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ATTACHMENT F
FEES AND PAYMENT TERMS
[*** two pages omitted]
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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ATTACHMENT G
INTEGRATION COSTS
[*** one page omitted]
[***] denotes language for which American Medical Alert Corp. has requested confidential treatment pursuant to the rules and regulations of the Securities Act of 1934, as amended. Confidential portions have been omitted and have been filed separately with the Securities and Exchange Commission.
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