EXHIBIT 10.17
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR
PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN
REDACTED AND ARE DENOTED BY A TRIPLE ASTERISK (***). THE
CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE
COMMISSION.
AMENDED AND
RESTATED
LICENSE
AGREEMENT
BY AND
BETWEEN
TRACE TECHNOLOGIES L.L.C.
AND SNAPTRACK, INC.
THIS AMENDED AND RESTATED LICENSE
AGREEMENT ,
collectively referencing that certain prior license agreement
entered as of August 20, 1999, and as amended, by and between STI
and Locate Networks, Inc. (the “ Agreement ”) is
made and entered into as of January 16, 2006 (the “
Effective Date ”) by and between SnapTrack, Inc.
(“ STI ” or “ SnapTrack ”), a
California corporation with its registered business office at 5775
Morehouse Drive, San Diego, California 92121, and Trace
Technologies L.L.C., (“ Trace ”), a Nevada
limited liability company with its principal place of business
located at 4538 South 140 th Street, Omaha, Nebraska
68137. STI and Trace may individually be referred to as a
“party” and collectively as the “parties”
in this Agreement. Except as is expressly and otherwise provided
herein, this Agreement supersedes and replaces as of and after the
Effective Date the prior License Agreement made and entered as of
August 20, 1999, as amended, by and between STI and Trace
Technologies L.L.C., as successor-in-interest to substantially all
of the assets of Locate Networks, Inc. (the “ Prior
License ”).
BACKGROUND
WHEREAS , Trace is in the business of designing,
developing, marketing and selling proprietary wireless
communication devices, including a location pager device for use
and operation on ReFLEX networks, in conjunction with related
location services.
WHEREAS , STI is developing software and related
technology based on its proprietary Assisted Global Positioning
System (“ A-GPS ”) technology.
WHEREAS , as part of the acquisition by Trace of
substantially all of the assets of Locate Networks, Inc. on June 1,
2004, the License Agreement that was made and entered as of August
20, 1999, as amended, by and between STI and Locate Networks, Inc.,
was assigned by Locate Networks, Inc. to Trace as the
successor-in-interest to substantially all of the assets of Locate
Networks, Inc.
WHEREAS , the parties desire to further delineate and
set forth the terms and conditions under which Trace will continue
to: (i) license the use of STI’s A-GPS Software to design,
develop, market and sell such wireless communication devices for
use in performing paging operations on ReFLEX networks, and (ii)
obtain from STI maintenance and technical support and engineering
services for the STI Server Software in connection with its use
with such wireless communication devices.
Trace/STI Amended and Restated
License Agreement
Proprietary and
Confidential
NOW, THEREFORE, in consideration of the agreements
contained herein and for such other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereby agree as follows:
AGREEMENT
In
consideration of the agreements contained herein, the parties agree
as follows:
1.
Definitions
. As used herein:
“ Affiliate ” means any
entity that controls, is controlled by, or under common control
with a party, where “control” means the direct or
indirect beneficial ownership of more than fifty percent (50%) of
the outstanding voting interests of such entity (but only so long
as such entity meets these requirements).
“ Authorized Distributors ”
means third parties authorized by Trace, pursuant to a written
agreement between Trace and such third party, to distribute
Wireless Devices.
“ Authorized Licensee ” means
any person or entity to which STI has licensed for distribution to
third parties the Client Program under a written license agreement
with STI.
“ Authorized Manufacturers ”
means third parties that manufacture Wireless Devices on behalf of
Trace.
“ Authorized Service Centers
” means third parties that install and host the Server
Software on servers for the benefit of Trace and in accordance with
the provisions of Section 2(b).
“ Client Program ” means, in
object code format only, the STI software, logic designs, and net
lists that were or are provided by STI to an Authorized Licensee
and, when installed in the Wireless Device, help analyze GPS data
and enable communications between the Wireless Device and the
Server Software to provide position location information to
Subscribers.
“ Client Software ” means, in
object code format only, the STI software, logic designs, and net
lists that were provided by STI to Trace on or prior to the
Effective Date and accepted by Trace and, when installed in the
Wireless Device, help analyze GPS data and enable communications
between the Wireless Device and the Server Software to provide
position location information to Subscribers.
“ Client Technology ” shall
mean that certain client software described on Exhibit
B .
“ Communications Interface Protocol
” means the detailed STI protocol which defines the way the
Client Software or Client Program interacts with the Server
Software, as modified from time to time by STI upon written notice
to Trace.
Trace/STI Amended and Restated
License Agreement
Proprietary and
Confidential
“ Confidential Information ”
of a party means any information disclosed by that party to the
other party pursuant to this Agreement which is in written,
graphic, machine readable or other tangible form and is marked
“Confidential,” “Proprietary” or in some
other manner to indicate its confidential nature. Confidential
Information may also include oral information disclosed by one
party to the other pursuant to this Agreement, provided that such
information is designated as confidential at the time of
disclosure. Notwithstanding the foregoing, (i) all information STI
provides to Trace that relates to the Software or the Engineering
Services shall be deemed STI’s Confidential Information, and
(ii) all information Trace provides to STI that relates to the
Wireless Device, Wireless Services or other Trace products or
services shall be deemed Trace’s Confidential
Information.
“ DSP ” means a digital
signal processor.
“ DSP Implementation ” means
an implementation of Client Software which (a) includes a DSP, (b)
fully conforms to the Communications Interface Protocol, and (c)
requires the use of the Server Software on a server that is remote
from a Wireless Device.
“ End User ” means any third
party, including but not limited to a Subscriber, which obtains a
Wireless Device solely for its own personal or business use and not
for further commercial distribution or resale.
“ End User License ” means an
end user license agreement which contains, among others, the end
user restrictions set forth on Exhibit A .
“ Enhancements ” means
accuracy improvements, speed improvements, and/or the addition of
new functionality to the Server Software, but excluding any New
Implementations. For purposes of interpretation of this Agreement,
“improvements” shall include bug fixes, error
corrections, and minor new releases signified by an increase in the
number to the right of the decimal point of the Server Software,
but shall exclude New Implementations.
“ Engineering Services ”
means technical training, design consulting, document creation,
implementation, testing, and engineering development services that
STI may provide under this Agreement, including, without
limitation, such services that STI may provide in accordance with
Section 4(b) below.
“ First Level Technical Support
” means support which Trace will provide directly to End
Users, Authorized Distributors, Authorized Service Centers, and
Authorized Manufacturers, including, without limitation, answering
questions, resolving technical difficulties related to the Wireless
Devices and Wireless Services that Trace is capable of resolving
without the assistance of STI, and providing on-site technical
support to Authorized Distributors, Authorized Service Centers, and
Authorized Manufacturers.
“ Intellectual Property Rights
” means any trade secrets, patents, copyrights, trademarks,
know-how, moral rights and other intellectual property rights
existing under the laws of any governmental authority, domestic or
foreign including all applications and registrations relating to
any of the foregoing.
Trace/STI Amended and Restated
License Agreement
Proprietary and
Confidential
“ MMGPS Implementation ”
means an implementation of a Client Program which (a) is based on
Verilog RTL core receiver position engine software, (b) fully
conforms to the Communications Interface Protocol, and (c) requires
the use of the Server Software on a server that is remote from a
Wireless Device.
“ Necessary IP ” means all
patent and patent application entitled to an effective filing date
occurring at any time prior to the expiration or earlier
termination of this Agreement and which are essential or useful to
the development, manufacture, use, sale, importation, disposal or
distribution of licenses or other rights to the Software or a
Client Program in order to comply with the location services
portion of the specifications of any wireless communications
standard adopted for any air interface anywhere in the
world.
“ New Implementations ” means
a new major release of the Server Software, signified by an
increase in the number to the left of the decimal point, that
incorporates significant new functionality, new methods, or new
techniques of implementing STI’s A-GPS or other technology
within the Server Software and which STI may develop and offer to
its server licensees for use in the performance of assisted
position location determination. New Implementations may be subject
to incremental fees and/or modified support terms.
“ Project Plan ” means the
project plan, set forth on Exhibit B of the Prior License,
which establishes a timetable for the parties to develop detailed
specifications, resource requirements, schedules, and milestones
related to the integration of the Software into Wireless
Devices.
“ Server Software ” means, in
object code format only, STI location server software that (a) is
installed on a server that is remote from the Wireless Devices, (b)
assists in determining the location of the Wireless Devices, and
(c) communicates with Wireless Devices using the Communications
Interface Protocol.
“ Software ” means the Client
Software, Server Software, and WARN Software.
“ Subscriber ” means a person
who obtains a Wireless Device and who has authorized access to the
Wireless Service.
“ WARN ” means the wide area
reference network of A-GPS receivers which provide satellite
information and differential corrections for a wide geographic
area.
“ WARN Software ” means STI
wide area reference network software, in object code format only,
which manages and consolidates data from a wide area network for
use by the Server Software.
“ Wireless Device ” means a
paging device (i) on which the DSP Implementation of the Client
Software or the MMGPS Implementation of the Client Program is
installed, and (ii) which (a) communicates with the server on which
the Server Software is installed via the Wireless Network to
transmit position location data or assistance information to and/or
from such paging device and (b) is not capable of transmitting or
receiving voice data or voice communications.
“ Wireless Network ” means
the two-way paging ReFLEX networks.
Trace/STI Amended and Restated
License Agreement
Proprietary and
Confidential
“ Wireless Service ” means
wireless location services, which in any way incorporate the
Software or utilize output of the Software to offer location
dependent applications or data to Subscribers, and which Trace
offers through the Wireless Network.
(a) Client Software License . Subject to the terms, conditions, and
restrictions of this Agreement, without the right to sublicense
except as explicitly set forth herein, STI hereby grants to Trace a
nonexclusive, perpetual, irrevocable, nontransferable (except as
set forth in Section 14(b)) license under STI’s Intellectual
Property Rights in the DSP Implementation of the Client Software,
to (i) modify the Client Software only as necessary to integrate
the Client Software with the Wireless Devices, provided that such
changes do not alter the core functionality of the Client Software,
(ii) make (or have made by Authorized Manufacturer(s) only) and
sell (either directly or through Authorized Distributors) Wireless
Devices, (iii) sublicense to End Users the right to use the Client
Software as embedded on the Wireless Devices, (iv) use the Client
Software solely as is necessary to provide First Level Technical
Support, and (v) sublicense to third parties the right to modify
the Client Software only as necessary to integrate the Client
Software with the Wireless Devices, provided that such changes do
not alter the core functionality of the Client Software, and
further provided that such third party signs an agreement with
Trace which contains terms substantially similar to those set forth
on Exhibit C .
(b) Server Software License . Subject to the terms, conditions, and
restrictions of this Agreement, STI hereby grants Trace a
nonexclusive, perpetual, irrevocable, nontransferable (except as
set forth in Section 14(b)) license, without the rights to
sublicense except as explicitly set forth herein, under STI’s
Intellectual Property Rights in the Server Software, to (i)
internally test and develop Wireless Devices for use with the
Server Software, (ii) sublicense to Authorized Service Centers only
the right to install, host and use internally the Server Software
on servers owned and controlled by Trace or such Authorized Service
Centers solely as is necessary to enable Trace to provide Wireless
Services for use on or with Wireless Devices to Subscribers, and
(iii) use internally the Server Software solely as is necessary to
provide First Level Technical Support.
(c) Trademarks . Subject to the terms, conditions and
restrictions of this Agreement, STI hereby provides on behalf of
QUALCOMM Incorporated the right to use the QPoint
Ô
trademark of QUALCOMM Incorporated
subject to and in accordance with the provisions contained in
Exhibit D to this Agreement.
(d) Reserved Rights and Restrictions
. Except for the limited rights and
licenses granted to Trace under this Agreement, STI retains all STI
right, title, and interest in and to the Software and all copies
thereof, and all STI Intellectual Property Rights related thereto.
Trace will not, and is not licensed to (i) use the Server Software
with software (other than the Client Software) which has
functionality similar to the functionality of the Client Software,
or (ii) use the Client Software with software (other than the
Server Software) which has functionality similar to the
functionality of the Server Software. Except as explicitly set
forth in this Section 2, Trace shall not, directly or through any
person or entity, in any form or manner, copy, distribute,
reproduce, incorporate, modify, create future derivative works of,
use or allow access to the Software or decompile, reverse engineer,
reverse translate, disassemble or otherwise attempt to derive
source code from the Software.
Trace/STI Amended and Restated
License Agreement
Proprietary and
Confidential
(f) Backup Copies . Trace may make and maintain a copy of the
Software in machine-readable, object code format, and a copy of the
related documentation, solely for nonproductive backup
purposes.
3.
Trace
Responsibilities
(a) Marketing . Trace shall use commercially reasonable
efforts to market, promote, and distribute the Wireless Devices and
to market and promote the Wireless Service.
(b) End User Licensing . Trace will include a copy of an End User
License with each Wireless Device sold to End Users.
(c) Authorized Manufacturers, Service Centers, and
Distributors . Trace will
not sublicense the Server Software to an Authorized Service Center,
or the Client Software to an Authorized Manufacturer, without the
prior written consent of STI, which consent shall not be
unreasonably withheld or delayed; provided, that such consent shall
not be required for Authorized Service Centers or Authorized
Manufacturers located in the United States, Canada, or the European
Union. Trace shall (i) ensure that each Authorized Manufacturer,
Authorized Service Center, and Authorized Distributor acknowledges
in writing, adheres to, and does not perform any act inconsistent
with, the terms and conditions of this Agreement, (ii) use
commercially reasonable efforts to ensure that Authorized
Manufacturers, Authorized Service Centers, and Authorized
Distributors do not reverse engineer, decompile, disassemble, or
modify the Software, and (iii) execute a non-disclosure agreement
at least as protective of STI as the provisions of Section 9 of
this Agreement prior to discussing or sublicensing the Client
Software to Authorized Manufacturers or the Server Software to
Authorized Service Centers.
(d) Non-Use of Open Source . Neither Trace nor any Authorized Service
Centers shall incorporate, link, distribute or use any third party
software or code in conjunction with any Software in such a way
that: (i) creates, purports to create or has the potential to
create, obligations with respect to the Software, including,
without limitation, the distribution or disclosure of any source
code; or (ii) grants, purports to grant, or has the potential to
grant to any third party any rights to or immunities under any of
STI’s Intellectual Property Rights, including, without
limitation, any rights which may exist in or relate to the
Software. Without limiting the generality of the foregoing, Trace
shall not incorporate, link, distribute or use the Software with
any code or software licensed under the GNU General Public License
(“GPL”), Lesser General Public License
(“LGPL”), Mozilla, and/or any other open source
license, in any manner that could cause or could be interpreted or
asserted to cause the Software (or any modifications, enhancements
or revisions thereto) to become subject to the terms of the GPL,
LGPL, Mozilla and/or such other open source license. Trace shall
also cause each of its Authorized Service Centers to agree and
covenant in writing not to incorporate, link, distribute or use the
Software with any code or software licensed under the GPL, LGPL,
Mozilla, and/or any other open source license, in any manner that
could cause or could be interpreted or asserted to cause the
Software (or any modifications, enhancements or revisions thereto)
to become subject to the terms of the GPL, LGPL, Mozilla and/or
such other open source license, and to recognize SnapTrack as an
intended third party beneficiary of this obligation with the right
to enforce such obligation against such Authorized Service
Centers.
***
Confidential material
redacted and filed separately with the Commission
Trace/STI Amended and Restated
License Agreement
Proprietary and
Confidential
(a) Delivery of Software . Trace acknowledges and agrees that STI has
fulfilled all of its obligations as of the Effective Date to
deliver the Software deliverables set forth on Exhibit E to
Trace. Upon written request by Trace, STI will provide Trace during
the term of this Agreement with (i) any Enhancements to the Server
Software that STI may make available to its other server licensees,
subject to the payment by Trace of amounts due under this Agreement
for such Enhancements, and (ii) any New Implementations of the
Server Software that STI may make available to any of its
licensees, subject to the payment by Trace of any incremental fees
and/or agreement to any modified support and/or other terms
applicable generally to licensees receiving such New
Implementations.
(b) Engineering Services . From time to time, Trace may propose in
writing to STI Engineering Services which Trace desires STI to
provide to Trace. Such proposal will contain detailed
specifications of the Engineering Services, which Trace desires STI
to provide. Within thirty (30) days after receiving such Trace
proposal and if STI is willing to perform such engineering
services, STI will inform Trace in writing of the terms, conditions
and pricing under which STI will perform such Engineering Services,
and will include estimates of STI’s time and materials rates,
as well as travel expenses anticipated to be incurred with respect
to the provision of such Engineering Services. If STI is willing to
provide such Engineering Services to Trace, and Trace desires to
acquire such Engineering Services, STI and Trace will mutually
agree in writing upon the terms, conditions and pricing under which
STI will provide such Engineering Services to Trace.
(c) SnapWarn Service Feed . During the period in which STI has available
to it access to A-GPS reference receiver network services from a
third party for sale to other parties, and subject to the payment
by Trace of all amounts due under this Agreement, STI will provide
Trace with access to STI’s commercial, A-GPS reference
receiver network services in North America for use with the Server
Software that is licensed by STI to Trace under this Agreement (the
“ SnapWarn Service Feed ”).
(d) New Implementations . Trace acknowledges that STI may choose to
seek and obtain additional fees and charges, or modified license or
support terms, for the New Implementations that STI may develop. If
STI develops any such New Implementations and chooses to make them
available to any of STI’s other Server Software licensees,
then STI will make such New Implementations available to Trace
under this Agreement, subject, however, to the payment by Trace to
STI, on a timely basis when due, of all then-current additional
fees and charges which apply to such New Enhancements generally and
the agreement by Trace to any modified license, support or other
terms that apply to such New Enhancements generally. If any such
New Enhancements are made available by STI to Trace, then they will
be deemed to be part of the Software licensed to Trace under the
license provisions in this Agreement.
(a) Fees .
In consideration of STI’s delivery of the Software and
provision of service and support as provided under this Agreement,
Trace will pay STI the fees set forth on Exhibit F
.
Trace/STI Amended and Restated
License Agreement
Proprietary and
Confidential
(b) Late Payments . All amounts which Trace does not pay on a
timely basis as required by this Agreement shall be subject to a
late charge equal to one and one-half percent (1.5%) per month (or,
if less, the maximum allowed by applicable law). In the event that
any payment due hereunder is not received by STI within thirty (30)
days of the date on which it is due as provided in Exhibit F
, and STI has provided Trace notice and thirty (30) days to cure
such deficiency and Trace has failed to do so, STI reserves the
right to suspend performance until such delinquency is
corrected.
(c) Payment Method . All payments by Trace hereunder shall be made
by wire transfer to such bank account as shall be designated by STI
in writing.
(d) Taxes . Trace will be responsible for the billing,
collecting and remitting of sales, use, value added, and other
comparable taxes reasonably determined by Trace to be due with
respect to the sale or distribution of the Wireless Devices and/or
the Wireless Services. STI shall not be liable for any taxes,
including without limitation income taxes, withholdings, value
added, franchise, gross receipts, sales, use property or similar
taxes, duties, levies, fees, excises or tariffs incurred in
connection with the development, manufacture, sale, or distribution
of the Wireless Devices and/or the Wireless Services. Trace takes
full responsibility for all such taxes, including penalties,
interest and other additions thereon. Trace shall not be liable for
any taxes, including without limitation income taxes, withholdings,
value added, franchise, gross receipts, sales, use property or
similar taxes, duties, levies, fees, excises or tariffs reasonably
determined by STI to be due with respect to the license to Trace of
the Client Software and Server Software hereunder, except to the
extent such taxes, duties, levies, fees, excises or tariffs are
incurred in connection with the development, manufacture, sale, or
distribution of the Wireless Devices and/or the Wireless Services.
STI takes full responsibility for all such taxes, including
penalties, interest and other additions thereon.
(e) Withholding Taxes . If, after a determination by foreign tax
authorities, any taxes are required to be withheld on payments made
by Trace to STI, Trace may deduct such taxes from the amount owed
STI and pay them to the appropriate taxing authority; provided
however, that Trace shall promptly secure and deliver to STI an
official receipt for any such taxes withheld or other documents
necessary to enable STI to claim a U.S. foreign tax credit, and
further provided that Trace will promptly notify STI of and refund
to STI the full amount of any reimbursements received by Trace for
such taxes. Trace will use commercially reasonable efforts to
ensure that any taxes withheld are minimized to the extent possible
under applicable law. Notwithstanding the foregoing, if Trace
should make any assignment of this Agreement to a foreign entity as
set forth under Section 14(b), then all payments to STI under this
Agreement shall be made by such entity without deduction or offset
for any withholding taxes imposed by foreign tax
authorities.
(f) Reports . Within thirty (30) days after the end of each
month during the term of this Agreement, Trace shall provide STI
with reports of (i) the number of Wireless Devices sold by Trace or
Authorized Distributors during such month, and (ii) the number of
Subscribers who had authorized access to the Wireless Service at
any time during such month.
Trace/STI Amended and Restated
License Agreement
Proprietary and
Confidential
(g) Audit Rights . Trace shall maintain full and complete records
of distribution of Wireless Devices and the provision of Wireless
Service by Trace, including without limitation copies of the
reports described in Section 5(f), for at least three (3) years
after the termination or expiration of this Agreement. STI shall,
at any time during the period when Trace is obliged to maintain
such records, be entitled to audit such records, as well as the
computers which track access to and usage of the Wireless Service
by Subscribers, upon thirty (30) days written notice, in order to
confirm the accuracy of the reports described in Section 5(f);
provided, that STI may conduct no more than one such audit in any
twelve (12) month period. Any such audit shall be performed at
STI’s expense during normal business hours with a minimum of
two (2) business days advance written notice, and shall be
conducted in such a manner as not to unreasonably interfere with
Trace’s normal business operations; provided, that the cost
of such audit shall be promptly paid by Trace if such audit reveals
an underpayment by Trace of more than five percent (5%) of the
amounts payable by Trace to STI in any twelve (12)-month
period.
6.
Intentionally Left
Blank.
(a) Warranty Support . STI shall provide warranty support during the
Warranty Period directly to Trace as set forth in Section
11.
(b) STI Technical Support to Trace
. Subject to payment by Trace of all
of the applicable then-current and mutually agreed upon fees and
its compliance with all other material provisions of this
Agreement, STI will provide to Trace technical support, and those
Enhancements that STI normally provides to others in connection
with such support, all in accordance with the provisions set forth
on Exhibit G .
(c) End User Support. Trace shall be responsible for all First Level
Technical Support.
(a) Retention of Ownership . Each party shall retain ownership of its
respective Intellectual Property Rights that (i) its employees have
developed or may in the future develop or (ii) it has acquired or
will acquire in the future from others. * Confidential material redacted and
filed separately with the Commission **
(b) Cross License Rights . Trace hereby grants, on behalf of itself and
its Affiliates, to STI an irrevocable, perpetual, non-exclusive,
royalty-free, fully paid-up, worldwide right and license under the
Necessary IP of
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