Exhibit 10.33
CONFIDENTIAL TREATMENT REQUESTED
BY ALIEN TECHNOLOGY CORP.
Agreement Number:
Alien_______
ALIEN TECHNOLOGY MASTER SALES
AGREEMENT
THIS MASTER SALES AND LICENSING
AGREEMENT (“ Agreement ”) is entered as of the
16th day of December, 2002 (“ Effective Date ”)
by and between The Gillette Company, a Delaware corporation with
offices at the Prudential Tower Building in Boston, MA 02199
(“ Buyer ”), and Alien Technology Corporation, a
Delaware corporation with offices at 18220 Butterfield Blvd.,
Morgan Hill, CA 95037 (“ Alien ”).
IN CONSIDERATION OF THE MUTUAL
COVENANTS AND CONDITIONS SET FORTH HEREIN, THE PARTIES AGREE AS
FOLLOWS:
1.1 “ Next Financing
” shall mean the first equity financing transaction after the
date hereof pursuant to which Alien raises at least $17,000,000
from persons and/or entities other than Buyer by selling and
issuing, in one or more closings, one new series of its shares of
its capital stock or instruments convertible into or exchangeable
for, in one or more steps, one new series of shares of its capital
stock; and “ Next Financing Securities ” shall
mean the new series of security or securities issued in the Next
Financing.
1.2 “ Products ”
means Tags and Straps as defined below.
1.3 “ Strap ”
means a radio frequency identification NanoBlock™ IC
integrated circuit (“ IC ”), compliant with
Specifications as defined below encapsulated in a plastic carrier
(see Exhibit E attached hereto for the dimensions and other
specifications of the carrier) that has been metalized to the pads
of the IC such that the carrier may be readily attached to an
antenna;
1.4 “ Tag ” means
a Strap affixed to an antenna (usually but not necessarily printed
or manufactured separately from the strap) and incorporating a
self-adhesive backing. The antenna contemplated by the parties for
eventual use is to be approximately one inch by three inch square
(1” x 3”). The parties acknowledge that Gillette is
presently working with antennas which are approximately 4
3/8” x 2” and 3 1/2” x 3 1/2” and that
there will be no additional charge associated with the use of these
antenna sizes. Nonstandard antenna designs or antenna sizes other
than that contemplated by the parties may result in somewhat higher
pricing (see Exhibit F for examples of standard antenna
designs).
1.5 “ Specifications
” means in the case of Straps or Tags the most recently
released and published version of the Auto ID Center Class 1
specification, an advanced version of which is attached hereto as
Exhibit C and which is reasonably expected by the parties to become
finalized by the Auto ID Center by December 2002; provided however,
that any changes in the Auto ID Center Class 1 specification may
require up to one year for redesign of the NanoBlock™ IC
integrated circuit before taking full force and effect as
Specifications. If and when Auto ID Center compliance
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CONFIDENTIAL TREATMENT REQUESTED
BY ALIEN TECHNOLOGY CORP.
testing becomes available, Alien will ensure
that Products provided to Buyer are tested and certified as Auto ID
Center compliant. In the case of Straps see also Exhibit E
regarding mechanical specifications.
1.6 “ Shipment Date
” means the date that Product leaves Alien’s or
Alien’s subcontractor’s facility for distribution to
Buyer or its designee.
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2.
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TERMS AND
CONDITIONS FOR SUPPLY OF PRODUCTS
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2.1 Manufacturing . Alien
shall sell to Buyer, and Buyer shall purchase from Alien, the
Products on the terms and conditions set forth in this Agreement.
The terms and conditions of this Agreement will control all sales
of Products by Alien to Buyer, and any additional or different
terms, whether oral or contained in any purchase orders, invoices
or like documents will be of no effect.
2.2 Forecasts . On or before
the first day of each calendar quarter during the term of this
Agreement, Buyer shall provide to Alien a 12-month non-binding
rolling forecast setting forth Buyer’s estimated supply
requirements for each Product for each month of the forecast (each,
a “ Forecast ”). Buyer acknowledges that while
the Forecasts are non-binding, the Forecasts must reflect
Buyer’s good faith estimate of its requirements for
Products.
2.3 Purchase Orders . Buyer
shall order Products by issuing written purchase orders that set
forth, without limitation, the Agreement Number, units of Tags and
units of Straps ordered, scheduled Shipment Dates, and destination
(“ Purchase Orders ”). Alien shall ship Products
in accordance with the Purchase Orders. Purchase Orders must be
placed in accordance with the lead time restrictions in
Section 2.4.
2.4 Lead Times . Buyer shall
provide Alien with a minimum order lead time for the delivery of
Products (i.e., the time between receipt of a Purchase Order by
Alien and the scheduled Shipment Date) of no less than 90 days for
Straps and 120 days for Tags. In each subsequent year, the Lead
Times shall be reduced by not less than 15 days, but in no event
shall a Lead Time be less than 7 days. Alien will use reasonable
efforts to reduce these lead times as production volume increases
and Alien gains experience with Buyer’s bill of materials
(e.g., antennas for production volumes). So long as Buyer provides
Alien with the minimum order lead time, Alien shall confirm the
Shipment Date via written notice to Buyer of each Purchase Order
within a reasonable time period after receipt. For those Purchase
Orders for which Buyer fails to provide the minimum lead time:
(a) Alien will not be obligated to accept the Purchase Order;
but (b) in the event Alien does accept the Purchase Order,
Alien shall use commercially reasonable efforts to fill the
Purchase Order by the Shipment Date requested by Buyer.
2.5 Acceptance of Purchase
Orders . Purchase Orders will be not deemed accepted by Alien
unless accepted in writing by Alien. Alien shall not unreasonably
reject any Purchase Order. Alien shall advise Buyer whether Alien
has accepted or rejected each Purchase Order no later than 5
business days after receipt of the Purchase Order. Alien must
accept Purchase Orders placed within the leads times provided that
the cumulative quantities ordered for shipment in each calendar
quarter
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CONFIDENTIAL TREATMENT REQUESTED
BY ALIEN TECHNOLOGY CORP.
were forecasted under Section 2.2 and do
not exceed the Quarterly Quantity Commitments in Exhibit
D.
2.6 Alien Quantity
Commitments. Alien commits to supply, under the terms and
conditions of this Agreement and specifically upon issuance and
acceptance of a Purchase Order pursuant to this Agreement, the
quantities of Product listed in Exhibit D for the calendar quarters
listed (“ Quarterly Quantity Commitments ”). For
those Purchase Orders that exceed the Quarterly Quantity
Commitments for the applicable calendar quarter: (a) Alien
will not be obligated to accept the Purchase Order; but (b) in
the event Alien does accept the Purchase Order, Alien shall use
commercially reasonable efforts to fill the Purchase
Order.
2.7 Shipping . All Products
must be suitably packed for shipment in Alien’s or
Alien’s subcontractor’s standard containers, marked for
shipment to Buyer’s address set forth above or to an address
specified in the Purchase Order, and delivered to a carrier or
forwarding agent chosen by Buyer. Should Buyer fail to designate a
carrier or forwarding agent, Alien shall make the designation.
Shipment will be F.O.B. Alien’s plant at Morgan Hill, CA (the
“ Delivery Point ”), at which time risk of loss
and title will pass to Buyer. All freight, insurance, and other
shipping expenses from the Delivery Point, as well as any special
packing expenses requested by Buyer, will be borne by
Buyer.
2.8 Quality Control and
Assurance. Alien shall perform such quality control and quality
assurance tests and procedures as are required to ensure the
Products meet the Specifications or as may be mutually agreed
between the parties hereafter. Upon completion of the manufacture
of each shipment lot of Products, Alien shall provide Buyer with a
written report of the results of said quality control and quality
assurance tests and procedures with respect to that shipment lot.
It is understood that, for all purposes, Buyer may rely on said
written report of results of quality control and quality assurance
tests and procedures.
2.9 Qualification and
Certification. Within 90 days of the Effective Date of this
Agreement, Alien shall submit to Buyer for Buyer’s approval,
which shall not be unreasonably withheld, conditioned or delayed, a
“ Product Qualification and Certification Plan ”
specifying the procedures, limits and responsibilities for the
qualification and certification of Product designs to
Specifications, including without limitation, hardware and software
compliance and compatibility, environmental extremes, storage and
operating life, and revision control. Buyer agrees to review and
respond to Alien’s proposed Product Qualification and
Certification Plan within 30 days of submission by Alien. If the
Product Qualification and Certification Plan is initially rejected
by Buyer, the parties shall cooperate in good faith to develop a
mutually agreeable plan within 30 days of the rejection by Buyer.
If the parties fail to agree on a mutually acceptable Plan within
the 30 day period, either party may, at its option, terminate this
Agreement. It is understood and agreed that any such plan will
provide for certification by Alien of compliance with the
Specification and at such time as it becomes available
certification by the Auto ID Center.
2.10 Inspection and
Acceptance . Within 90 days of the Effective Date of this
Agreement, Alien shall submit to Buyer for Buyer’s approval,
which shall not be unreasonably withheld, conditioned or delayed,
an “ Incoming Acceptance Test Procedure ”
specifying the test
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CONFIDENTIAL TREATMENT REQUESTED
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procedures, sample sizes, acceptance test limits
and responsibilities for the incoming acceptance and inspection of
Product, including without limitation, functional and mechanical
testing and inspection. Buyer agrees to review and respond to
Alien’s proposed Incoming Acceptance Test Procedure within 30
days of submission by Alien. If the Incoming Acceptance Test
Procedure is initially rejected by Buyer, the parties shall
cooperate in good faith to develop a mutually agreeable Plan within
30 days of the rejection by Buyer. If the parties fail to agree on
a mutually acceptable Incoming Acceptance Test procedure within 30
days, either party may, at its option, terminate this Agreement.
Buyer may, at its sole option inspect and test all Products in
accordance with the Incoming Acceptance Test Procedure, and may
refuse to accept Products that do not conform materially to the
acceptance test limits for those Products at any time until 90 days
after the Shipment Date. In the event that any Products are
materially defective in materials or workmanship, Buyer may reject
those Products by giving written notice to Alien before the
expiration of the 90-day period, and Alien shall, at its expense
and option (including shipping charges), replace the defective
Products and redeliver conforming Products to Buyer or if
replacement is not commercially practicable as determined in
Alien’s sole discretion, Alien shall refund to Buyer the
Purchase Price (as defined below) for the Products. Any Products
not rejected in writing within the 90-day period are deemed
accepted.
2.11 Deferral . Buyer may, at
no charge, reschedule shipments of Products for any Purchase Order
by notifying Alien not less than 30 days prior to the scheduled
delivery date(s). The reschedule date is subject to the quantity
and price limitations related to the Quarterly Quantity Commitment
as provided in Section 2.6 and Exhibits B and D.
2.12 Cancellation . Buyer
may, at no charge, cancel shipments of Products for any Purchase
Order by notifying Alien not less than 60 days prior to the
scheduled delivery. Alien shall endeavor to accommodate
cancellations of less than ninety days notice.
2.13 Delay in Delivery .
Alien shall notify Buyer promptly in writing in the event that the
delivery of any Products under a Purchase Order will be delayed
until after the scheduled Shipment Date. In the event that
Alien’s delivery of any Products is delayed by more than 15
days after the scheduled Shipment Date, Alien shall expedite
shipment of such Products at its own expense.
2.14 Allocation .
Notwithstanding any other provision of this Agreement, in the event
that Alien’s ability to supply Products is constrained such
that the scheduled Shipment Date cannot be met, for any reason,
including without limitation component availability, Alien shall
deliver Products for all previously accepted Purchase Orders, but
thereafter Alien may reduce the quantities of Products to be
supplied to Buyer in accordance with Alien’s allocation
policies. In the event such allocation is not a result of force
majeure, Alien shall, at Buyer’s request, refund the Per Unit
Deposit Rebate (as defined hereinafter) related to such quantities
not delivered under this Section 2.12.
3.1 Price . The purchase
price of the Products (“ Purchase Price ”) to
Buyer will be as set forth in Exhibit B.
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CONFIDENTIAL TREATMENT REQUESTED
BY ALIEN TECHNOLOGY CORP.
3.2 Deposit . Fifteen
(15) days prior to the reasonably expected date of the last
closing of Alien’s Next Financing, Buyer shall deposit into
an interest bearing escrow account, with the interest accruing to
Buyer, [***] as a deposit toward the purchase of the Quarterly
Quantity Commitments (the “ Deposit ”). The
Deposit will be held in escrow until the date of the last closing
of Alien’s Next Financing, at which time it shall be released
to Alien’s account, and Alien shall deliver to Buyer a
Warrant (in the form attached hereto as Exhibit J). The number of
shares that may be purchased under the Warrant shall equal [***]
divided by the Warrant Exercise Price, as defined in the Warrant.
$0.0133 (the “ Per Unit Deposit Rebate ”) of the
Deposit shall be applied to the Purchase Price of the Quarterly
Quantity Commitments purchased by Buyer under this Agreement until
the [***] has been exhausted. Except as expressly provided in this
Agreement, including, without limitation, in Section 9.2(b)
hereof, this Deposit is nonrefundable.
3.3 Payment . Alien shall
submit an invoice to Buyer no sooner than the Shipment Date. The
invoice must state the Purchase Price for all Products plus any
freight, taxes, or other applicable costs paid by Alien to be
reimbursed by Buyer. Buyer shall pay all invoices within 45
calendar days of receipt of invoice. Any payments due to Alien
under this Agreement that are not paid within 5 days of the date
the payments are due shall be subject to a service charge of
1% per month, calculated on the number of days that the
payment is delinquent, or, if lower, the maximum charge permitted
under applicable law. This Section 3.3 shall in no way limit
any other remedies available to Alien. All payments by Buyer shall
be made in U.S. Dollars .
3.4 Taxes . All prices
described herein are exclusive of applicable excise, sales, use,
and similar taxes and customs, duties, tariffs, and other
import/export fees and taxes. Buyer shall reimburse Alien for all
the taxes that are properly invoiced by Alien, or Buyer shall
provide Alien with a properly executed tax exemption certificate.
Taxes must appear as a separate item on Alien’s
invoice.
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4.
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EARLY
CUSTOMER INCENTIVE PROGRAM
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Upon Alien’s receipt of the
Deposit from Buyer under Section 3.2, Buyer is eligible to
participate in Alien’s Early Customer Incentive Program on
the terms and conditions detailed in Exhibit A.
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5.
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CHANGES IN
PRODUCT REQUIREMENTS
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Alien shall request from Buyer
approval of any proposed modifications it intends to make that
affect the form, fit, or function of the Products, unless the
change is required by law in which case Alien shall give Buyer
notice as reasonably practicable. Buyer shall respond to such
request within 60 days of receipt. Approval by Buyer will not be
unreasonably withheld.
6.1 Support . Alien shall
provide, at no cost to Buyer, its standard, normal customer
technical support. In addition, during the term of this Agreement,
Alien agrees to provide to Buyer, at no additional cost, the
support activities specified in Exhibit G. Support requirements
beyond the
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CONFIDENTIAL TREATMENT REQUESTED
BY ALIEN TECHNOLOGY CORP.
normal customer technical support and the
additional support activities specified in Exhibit G shall be
provided by Alien to Buyer pursuant to separate written agreement
between Alien and Buyer.
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7.
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WARRANTY AND
DISCLAIMER
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7.1 Warranty . Alien warrants
that the Products will be materially free from defects in materials
and workmanship and will conform materially to the applicable
Specifications and other technical requirements agreed upon by the
parties for 1 year after delivery to the Delivery Point.
7.2 Warranty Remedy . Alien
shall, at its option and expense, replace any Product that is in
breach of the warranty specified in Section 7.1 (each such
Product referred to herein as “ Non-Complying ”)
subject to Buyer’s notification of Alien that the Product is
Non-Complying.
7.3 Warranty Procedures .
Upon Alien’s request, made after Buyer’s notification
that any particular Product is Non-Complying, Buyer shall ship to
Alien the Non-Complying Product or make it available for inspection
at Buyer’s facility. The transportation costs incurred in
connection with the return and redelivery of Non-Complying Products
shall be borne by Alien.
7.4 Exclusions . The
warranties set forth in Section 7.1 will not apply to defects
arising from: (i) misuse, theft, vandalism, fire, water, or
other peril; (ii) alteration of or additions to the Products
performed by personnel not certified by Alien to perform such
alterations and additions; (iii) operation outside of
environmental specifications by any party other than Alien;
(iv) any use of the Products in a manner for which it was not
designed or as not authorized under this Agreement; or
(v) negligence on the part of Buyer, its employees, agents,
consultants, or customers. It is understood and agreed that
Buyer’s affixing to its products the Products in the normal,
expected, and reasonable manner does not constitute an alteration
of or addition to the Products for purposes of this
Section 7.4.
7.5 Limitations . These
warranties are solely for the benefit of Buyer.
7.6 Warranty . EXCEPT FOR THE
WARRANTY EXPLICITLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY
MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND, WHETHER ORAL
OR WRITTEN, WHETHER EXPRESS, IMPLIED, OR ARISING BY STATUTE,
CUSTOM, COURSE OF DEALING OR TRADE USAGE, WITH RESPECT TO THE
SUBJECT MATTER HEREOF, IN CONNECTION WITH THIS AGREEMENT. EACH
PARTY SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED WARRANTIES OR
CONDITIONS OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT, AND SATISFACTORY QUALITY.
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CONFIDENTIAL TREATMENT REQUESTED
BY ALIEN TECHNOLOGY CORP.
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8.
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INTELLECTUAL
PROPERTY INFRINGEMENT INDEMNITY
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8.1 Indemnity . Alien shall
defend or at its option settle any lawsuit, action, or claim
against Buyer alleging that any Product, when used in accordance
with the restrictions in this Agreement and in the form delivered
by Alien, infringes any existing patent (issued in the United
States, European Union, Japan or any PCT country as of the
Effective Date) or any copyright, trademark, or trade secret of any
third party, and Alien shall pay any resulting third party damages,
liabilities, and costs (including reasonable attorneys’
fees), subject to the following: Buyer shall provide Alien with:
(i) prompt written notice of the claim or action;
(ii) control and authority over the defense or settlement of
the claim or action; and (iii) proper and full information and
reasonable assistance to defend and/or settle the claim or
action.
8.2 Remedy . In the event
that any Product is held, or in Alien’s reasonable opinion,
may be held to constitute an infringement as set forth in
Section 8.1, Alien, at its option and expense, may:
(i) obtain for Buyer the right to continue to use such Product
as contemplated herein; or (ii) modify such Product so that it
becomes non-infringing, but without altering the form, fit, and
function of the Product; or (iii) replace such Products with
functionally equivalent non-infringing Products. In such event and
within a reasonably prompt time period after Alien has such actual
knowledge, Alien shall provide notice to Buyer of such potential
infringement.
8.3 Limitations .
Notwithstanding the provisions of Section 10.1, Alien will
have no liability for infringement claims arising from:
(i) any physical combination of Products with other products
not provided by Alien or manufactured or sold by Buyer or a third
party, but not covering such Products standing alone; (ii) the
modification of such Products unless such modification was made or
authorized in writing by Alien, where such infringement would not
have occurred but for such modifications; or (iii) compliance
with Buyer’s specifications, designs, or instructions where
such compliance cannot be performed without
infringement.
8.4 Disclaimer . THE
FOREGOING STATES THE ENTIRE LIABILITY AND OBLIGATION OF ALIEN AND
THE EXCLUSIVE REMEDY OF BUYER, WITH RESPECT TO ANY ALLEGED OR
ACTUAL INFRINGEMENT OF PATENTS, COPYRIGHTS, TRADE SECRETS,
TRADEMARKS, OR OTHER INTELLECTUAL PROPERTY RIGHTS BY THE PRODUCTS.
THE FOREGOING IS GIVEN TO BUYER SOLELY FOR ITS BENEFIT AND IN LIEU
OF, AND ALIEN DISCLAIMS, ALL WARRANTIES OF NON-INFRINGEMENT WITH
RESPECT TO THE PRODUCTS.
9.1 Term . This Agreement
commences in effect on the Effective Date and continues in force
for a period of 5 years, unless earlier terminated according to the
terms of this Section 9. However, the Deposit may, under a
separate written agreement, be applied to purchases from Alien by
Buyer of Products after the termination of the
Agreement.
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CONFIDENTIAL TREATMENT REQUESTED
BY ALIEN TECHNOLOGY CORP.
9.2 Termination .
(a) For Cause. Either party
may, without penalty, terminate this Agreement or cancel any
Purchase Order issued under this Agreement or portion thereof
effective upon written notice to the other party if the other party
materially breaches this Agreement, including without limitation by
failure to pay any amounts due or breach of Sections 3.2 or 3.3,
and the material breach remains uncured, if cure is possible, for
30 days following written notice of breach by the non-breaching
party.
(b) Related to Next
Financing.
(i) Buyer shall have the right, at
its option and in its sole discretion, to terminate this Agreement
immediately, without penalty for said termination, and receive an
immediate refund of the Deposit (if previously paid), if Alien
fails to raise at least $17,000,000, on or before June 30,
2003, from persons and/or entities other than Buyer by selling and
issuing, in one or more closings, one new series of its shares of
its capital stock or instruments convertible into or exchangeable
for, in one or more steps, one new series of shares of its capital
stock.
(ii) In addition, Buyer shall have
the right, at its option and in its sole discretion, to terminate
this Agreement immediately, without penalty for said termination,
and receive an immediate refund of the Deposit (if previously
paid), if the date of the last closing of Alien’s Next
Financing occurs after June 30, 2003 and more than forty-five
(45) days after the date on which Buyer makes the Deposit
described in Section 3.2 hereof.
(iii) If Buyer elects not to
terminate this Agreement pursuant to Section 9.2(b)(i) or
Section 9.2(b)(ii) above, Alien shall have the right, at its
option and in its sole discretion, to terminate this Agreement,
without penalty for said termination, on the date of the last
closing of Alien’s Next Financing if Buyer invests less than
$1 million in the Next Financing Securities; provided,
however, that this Section 9.2(b)(iii) shall terminate and
be of no further force or effect if the date of the last closing of
the Next Financing occurs after September 30, 2003. Should
Alien exercise its right to terminate this Agreement pursuant to
this Section 9.2(b)(iii), Alien shall return any remaining
unapplied Deposit amounts (if previously paid) to Buyer on the date
on which Alien elects to terminate this Agreement.
9.3 Effect of Termination or
Expiration .
(a) In the event of a termination or
expiration of this Agreement, the provisions of this Agreement will
continue to apply to all Purchase Orders accepted by Alien prior to
the effective date of the termination or expiration. Termination or
expiration of this Agreement will not release either party from
making payments due to the other party under the terms of this
Agreement. The Deposit made by Buyer will survive termination of
the Agreement and such deposit if not returnable upon such
termination may be applied by Buyer against the purchase of
products after the termination date under a separate written
agreement. In addition, the provisions of Sections 1, 7.5,
7.6, 8.4, 9.3, 10, 11, and 12 will survive the termination of this
Agreement for any reason.
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CONFIDENTIAL TREATMENT REQUESTED
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(b) If Buyer properly terminates
this Agreement under any of Sections 2.9, 2.10, 3.2, 9.2(b)(i),
9.2(b)(ii) or 12.4, or terminates this Agreement pursuant to
Section 9.2(a) because Alien (i) failed to deliver
Quarterly Quantity Commitments ordered by Buyer by more than
20% per quarter for two or more consecutive quarters, or
(ii) materially breaches this Agreement , Alien shall, upon
Buyer’s request, return any remaining unapplied Deposit
amounts to Buyer within 10 business days of receipt of the notice
of termination by the appropriate party.
10.1 “ Confidential
Information ” means any information disclosed by one
party to the other either directly or indirectly pursuant to this
Agreement that is confidential or proprietary information or trades
secrets. Confidential Information shall include, without
limitation, any information that is marked
“Confidential,” “Proprietary,” or in some
similar manner or that is clearly by its nature confidential.
Confidential Information shall also include, without limitation,
Alien’s or Buyer’s orders, pricing, product
information, customer and supplier information, product or material
specifications, systems, methods, and sales and marketing plans
provided that such information has not previously been published or
disclosed by its owner to third parties without any obligation of
confidentiality. Notwithstanding the foregoing, Confidential
Information shall also include the items set forth or described in
Exhibit H. Each party shall treat as confidential all Confidential
Information of the other party, shall not use such Confidential
Information except in connection with implementing this Agreement,
and shall not disclose Confidential Information to any third party.
This Section 10.1 will not apply to any Confidential
Information that is or becomes generally known and available in the
public domain through no fault of the receiver.
10.2 Notices . All
proprietary notices incorporated in, marked on, or fixed to the
Products or Documentation by Alien or any other third party prior
to sale by Alien to Buyer must not be removed or obliterated by
Buyer.
10.3 No Implied Licenses . No
licenses are to be implied from any term or provision of this
Agreement.
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11.
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GENERAL
WARRANTIES AND LIMITATIONS OF LIABILITY
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11.1 General Warranties .
Each party represents and warrants that:
(a) it has the right to enter into
this Agreement; it is a corporation duly organized, validly
existing, and in good standing under the laws of the state of its
incorporation; it has the corporate power and authority for, and
has by all necessary corporate action authorized, the execution and
delivery of this Agreement, and the performance of its obligations
hereunder; and
(b) the execution, performance, and
delivery of this Agreement by it will not conflict with or violate
or result in any breach of, or constitute a default under, any
contract, agreement, or other obligation of it.
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CONFIDENTIAL TREATMENT REQUESTED
BY ALIEN TECHNOLOGY CORP.
11.2 Limitation of Liability
. EXCEPT FOR LIABILITY ARISING UNDER SECTION 10.1
(CONFIDENTIALITY), NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY
FOR ANY SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR INCIDENTAL DAMAGES
(INCLUDING LOST OR ANTICIPATED REVENUES OR PROFITS RELATING TO THE
SAME, OR COST OF PROCUREMENT OF SUBSTITUTE PRODUCTS, SERVICES, OR
TECHNOLOGY), ARISING FROM ANY CLAIM RELATING TO THIS AGREEMENT OR
THE SUBJECT MATTER HEREOF, WHETHER THE CLAIM IS BASED ON WARRANTY,
CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, EVEN IF AN
AUTHORIZED REPRESENTATIVE OF THE PARTY IS ADVISED OF THE
POSSIBILITY OF THE DAMAGES. THESE LIMITATIONS WILL APPLY
NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED
REMEDY. EXCEPT FOR LIABILITY ARISING UNDER SECTION 3 (PAYMENT) OR
SECTION 10.1 (CONFIDENTIALITY), NEITHER PARTY’S AGGREGATE
LIABILITY TO THE OTHER WITH RESPECT TO ANY AND ALL CLAIMS ARISING
OUT OF OR RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT,
INCLUDING LIABILITY FOR THIRD PARTY CLAIMS ARISING UNDER SECTION 8,
WILL EXCEED [***].
12.1 Nonassignment/Binding
Agreement . Except in the case of a transfer of all or
substantially all of the assets of either party, neither this
Agreement nor any rights under this Agreement may be assigned or
otherwise transferred by either party, in whole or in part, without
the prior written consent of the other party, which consent it
shall not unreasonably withhold, condition or delay. Subject to the
foregoing, this Agreement will be binding upon and will inure to
the benefit of the parties and their respective successors and
assigns. Buyer acknowledges and agrees that Alien may, in its sole
option, use subcontractors to meet its obligations under this
Agreement. In such event, Alien shall remain responsible for
meeting all its obligations under this Agreement.
12.2 Independent Contractors
. The relationship of the parties under this Agreement is that of
independent contractors. Neither party will be deemed to be an
employee, agent, partner, or legal representative of the other for
any purpose, and neither will have any right, power, or authority
to create any obligation or responsibility or make any
representation on behalf of the other.
12.3 Notices . Any notice
required or permitted under the terms of this Agreement or required
by law must be in writing and must be (a) delivered in person,
(b) sent by first class registered mail, or air mail, as
appropriate, or (c) sent by overnight air courier, in each
case properly posted and fully prepaid to the appropriate address
set forth in the preamble to this Agreement. Either party may
change its address for notice by notice to the other party given in
accordance with this Section. Notices will be considered to have
been given at the time of actual delivery in person, 3 business
days after deposit in the mail as set forth above, or 1 day after
delivery to an overnight air courier service.
12.4 Force Majeure . Neither
Party shall be deemed in default hereunder, nor shall it hold the
other Party responsible for any cessation, interruption or delay in
the performance of its obligations hereunder if such cessation,
interruption or delay is caused,