MASTER PURCHASE AND LICENSE
AGREEMENT
This Master
Purchase and License Agreement (“Agreement”) is made as
of March 10, 2005 (the “Effective Date”), between
Veraz Networks, Inc., with headquarters at 926 Rock Avenue, San
Jose, CA 95131 (“Veraz”) and the “Customer”
listed below.
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StarVox
Communications, Inc.
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Contact:
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Douglas S.
Zorn
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2202
No. 1 st Street
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Phone:
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(925)
984-6671
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San Jose, CA
95131
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Fax:
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(800)
270-9380
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E-Mail:
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dzorn@starvoxcom.com
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This Agreement
sets forth the terms and conditions under which the parties agree
that Customer may, pursuant to one or more separately executed
Orders, (i) purchase Veraz’s Hardware, (ii) obtain
licenses to use Veraz’s proprietary Software,
(iii) purchase and/or license Third Party Products; and
(iv) purchase Services listed on the applicable Order. This
Agreement includes the attached Terms and Conditions and all
Schedules attached hereto and any other attachments that reference
this Agreement, and contains, among other things, warranty
disclaimers, liability limitations and use limitations
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By signing
below, the parties agree to be bound by the terms and conditions of
this Agreement. Any executed copy of this Agreement made by
reliable means (e.g. photocopy or facsimile) is considered an
original.
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Customer:
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Veraz Networks,
Inc.:
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/s/ Douglas S.
Zorn
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By:
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/s/ Allen
Morton
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Douglas S.
Zorn
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Name:
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Allen
Morton
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CEO
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Title:
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CFO
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1.1. “
Deployment Site(s) ” mean the Customer site(s), as
described in detail in an Order, to where the Software and Hardware
will be delivered by Veraz and used by Customer.
1.2. “
Customer Equipment ” means the equipment to be
furnished by Customer at Customer’s expense, and approved by
Veraz for use in connection with the Standalone
Software.
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1.3. “
Documentation ” means the documentation that Veraz
will provide to Customer with the Software and Hardware.
1.4. “
Hardware ” means the tangible product, including
embedded Software, if any, as described in an Order.
1.5. “
Installation Services ” means the services, as further
defined and set forth in an Order, which Customer will purchase
hereunder.
1.6. “
Intellectual Property Rights ” means and ideas,
whether or not patentable, inventions, discoveries, processes,
works of authorship, marks, names, know-how, and any and all rights
in such materials on a worldwide basis, including any rights in
patents, inventor’s certificates, utility models, copyrights,
trade secrets, mask works, trade names and marks and other
analogous rights.
1.7. “
Order ” means a written purchase order from Customer
to Veraz, substantially in the form attached hereto for the initial
Order as Schedule A , for Software, Hardware, and/or
Services to be purchased, licensed or provided under this
Agreement.
1.8. “
Post-Sales Support Services ” means the post-sales
support services for the Products, as further defined and set forth
in Schedule B , that Customer will purchase
hereunder.
1.9. “
Product ” means Software and/or Hardware.
1.10. “
Services ” means the Post-Sales Support Services,
Installation Services, training services, consulting services and
other services provided by Veraz under this Agreement.
1.11. “
Software ” means Veraz’s proprietary software
and/or third party proprietary software licensed to Veraz, embedded
in Hardware, or standalone Products (“Standalone
Software”), described in an Order, in object code form and
Documentation, if any, including any error corrections and updates
thereto provided by Veraz to Customer under this
Agreement.
1.12. “
Third Party Products ” means hardware or software
products from third party vendors provided by Veraz hereunder
(excluding third party technology embedded in the Products) and
separately identified in an Order.
2. PRICES,
PAYMENT, ORDER PROCESS
2.1.
Prices . Prices for Products and Services are as set forth
in an executed Order, which sets forth Veraz’s pricing and
the discounts applicable to that Order.
2.2.
Taxes . All stated prices are exclusive of any taxes, fees,
and duties or other amounts, however designated, and including
without limitation value added and withholding taxes that are
levied or based upon which charges, or upon this Agreement. Any
taxes related to Products or Services purchased or licensed
pursuant to this Agreement including, but not limited to,
withholding taxes, will be paid by Customer or Customer will
present an exemption certificate acceptable to the taxing
authorities. Applicable taxes will be billed as a separate item on
the invoice, to the extent possible. Customer will hold Veraz
harmless from all claims and liability arising from the failure to
report or pay any taxes, or duties and assessments owed by
Customer.
2.3. Order
Process . Customer will make the initial purchase of Products
by issuing a written and executed Order to Veraz, indicating
specific Products, quantity, price, total purchase price, shipping
instructions,
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requested
shipment dates, bill-to and ship-to addresses, and any other
special instructions. Subsequent purchases will be made by an
Order, with prices as may be specified for additional Orders in the
initial Order or as mutually agreed. The terms of this Agreement
(including an Order) control over additional or different terms of
any Customer purchaser order, confirmation, invoice or similar
document, even if accepted in writing by both parties.
2.4.
Payment . Upon and subject to credit approval by Veraz, and
unless otherwise set forth in an Order, all amounts due to Veraz
hereunder will be due and payable within thirty (30) days
after the date of Veraz’s invoice to Customer. All payments
will be made in U.S. currency. If at any time Customer is
delinquent in the payment of any invoice or is otherwise in breach
of this Agreement, Veraz may, in its discretion, withhold shipment
(including partial shipments) of any Order or performance of any
Services or may, at its option, require Customer to prepay for
further shipments of Product or performance of Services. Veraz may
charge interest of one percent (1.0%) per month (or the maximum
allowed by law, if less) for any sum not paid by Customer when
due.
2.5. Travel
and Incidental Expenses . Customer will reimburse Veraz for any
reasonable out-of-pocket expenses incurred by Veraz in connection
with performing any pre-approved Services at Customer’s
site.
3.1.
Shipping . Shipping dates will be established by Veraz upon
receipt of an Order and will be assigned as close as practicable to
Customer’s requested date based on Veraz’s then-current
lead times for the Products. Veraz will notify Customer of the
scheduled ship date within ten (10) days after receipt of an Order.
Unless given written instruction by Customer, Veraz will select the
carrier.
3.2. Title
and Risk of Loss . Shipping terms are F.O.B. Veraz’s
designated shipping location (or FCA INCOTERMS 2000 for
international shipments). Title and risk of loss will pass from
Veraz to Customer upon delivery to the common carrier or
Customer’s representative at the F.O.B. point. Delivery will
be deemed made upon transfer of possession to the carrier. Customer
will be responsible for all freight handling and insurance charges.
In no event will Veraz have any liability in connection with
shipment, nor will the carrier be deemed to be an agent of Veraz.
Veraz will not be liable for damage or penalty for delay in
delivery or for failure to give notice of any delay. Acceptance
will be deemed to be given by Customer upon delivery of the
Products unless expressly set forth to the contrary in an
Order.
3.3.
Security Interest . If specified in the applicable Order,
then Customer will cooperate fully with Veraz in the filing of a
secured transactions document (e.g., UCC 1 in the US) and execution
of Veraz’s standard security agreement for Products purchased
pursuant to this Agreement in the forms attached to a Financing
Addendum attached hereto, if applicable. Veraz’s security
interest will remain in effect until Customer has paid in full for
the Products and all related Services.
3.4. Letter
of Credit . If specified in the applicable Order, Customer will
provide a letter of credit in accordance with the procedures set
forth therein.
3.5. Third
Party Products License and Support Terms . Any Third Party
Products provided hereunder will be provided pursuant to such Third
Party Products vendor’s license, and support terms and
conditions. Except as otherwise expressly set forth in an
Order,
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support for
such Third Party Products will be procured by Customer directly
from the applicable Third Party Products vendor. Upon reasonable
notice to Customer, Veraz has the right to replace software
provided to Customer as part of Third Party Products with software
that has similar functionality.
4. SOFTWARE
LICENSE, RESTRICTIONS AND PROPRIETARY RIGHTS
4.1.
License . Subject to the trams and conditions of this
Agreement, Veraz grants Customer, under Veraz’s Intellectual
Property Rights, a nonexclusive and nontransferable (subject to
Section 11.6) license, without the right to sublicense, only
to: (a) use the Software on the Hardware on which it was
embedded when delivered to Customer; (b) install standalone
Software (not embedded on Hardware prior to delivery) on Hardware,
Third Party Products, or Customer Equipment, as applicable, for
which it was intended, as specified in the Documentation or Order;
and (c) use the Software in accordance with any use
restrictions specified or referenced in an Order (including, but
not limited to, concurrent user or other concurrent usage license
limits and geographic specific specifications). Customer
acknowledges that the standalone Software as delivered may not
comply with all VoIP U.S. or non-U.S. standards, and may require
the license of additional Software functionality if available at
Veraz’s then-current license fees in order to support such
standards.
4.2.
Copies . Customer may make one (1) copy of the Software
for back-up purposes and a reasonable number of copies of
Documentation for technical support personnel and other internal
uses, provided that any such copies will include Veraz’s
copyright and any other proprietary notices, and such copies remain
the property of Veraz and/or its licensors, as
applicable.
4.3.
Restrictions . The license granted herein is granted solely
to Customer, and not to any affiliate of Customer. The license
granted herein does not authorize Customer (nor may Customer allow
any third party) to: (a) copy, distribute, use or allow third
party access to the Software, except as expressly authorized under
this Agreement; (b) decompile, disassemble, reverse engineer,
translate, convert or apply any procedure or process to the
Software in order to ascertain, derive, and/or appropriate for any
reason, the source code or source listings for the Software
(except, in the European Union, to the extent that such acts may
not lawfully be prohibited) or any trade secret information or
process contained in the Software; (c) modify, incorporate
into or with other software, or create a derivative work of any
part of the Software; (d) use, access or allow access to the
Software in any manner to provide service bureau, time-sharing or
other computer services to third parties; (c) lease or lend
the Software; (f) disclose the results of any benchmarking of the
Software, or use such results for its own competing software
development activities, without the prior written consent of Veraz;
or (g) attempt to circumvent any usage limits or other
license, timing or use restrictions that are built in to the
Software. Customer is hereby notified that the Software may contain
time-out devices, counter devices, and/or other devices intended to
ensure the limits of a particular license will not be exceeded
(“Limiting Devices”). If the Software does contain
Limiting Devices, Veraz will ensure that Customer receives any keys
or other materials necessary to use the Software to the limits of
Customer’s license.
4.4.
Ownership . Veraz and its licensors presently own and will
continue to own all worldwide right, title, and interest in and
to
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the Products
and all worldwide Intellectual Property Rights therein. Customer
will not delete or in any manner alter the copyright, trademark,
and other proprietary rights notices of Veraz and its licensors
appearing on the Products as delivered to Customer. Veraz reserves
all rights and licenses in and to the Software not expressly
granted to Customer under this Agreement.
4.5. No
Trademark Rights . Veraz does not grant Customer any trademark
rights under this Agreement. Customer will not use, register or
take other action with respect to any name, logo, trademark,
service mark, or other identifier used anywhere in the world by
Veraz.
4.6. U.S.
Government Restricted Rights . If Customer is an agency,
department, or other entity of the United States Government
(“Government”), the use, duplication, reproduction,
release, modification, disclosure or transfer of the Software,
manuals, or any technical specifications, or any related
documentation of any kind, including technical data
(“Software and documentation”), is restricted in
accordance with Federal Acquisition Regulation (“FAR”)
12.212 for civilian agencies and Defense Federal Acquisition
Regulation Supplement (“DFARS”) 227.7202 for
military agencies.
5.
INSTALLATION, TRAINING, AND SUPPORT SERVICES
5.1.
Installation Services . Veraz will perform the Installation
Services for the installation fees, if any, specified in an Order
to install the Software on the Customer Equipment, Third Party
Products or Hardware at Customer’s site or as otherwise set
forth in an Order. Customer will be solely responsible for
completing all tasks that are reasonably required to prepare
Customer’s site and equipment for the performance of such
Services by Veraz. If specified in the applicable Order, Customer
will cause the Customer Equipment to be delivered, at
Customer’s expense, to Veraz’s facility for
pre-installation of Software.
5.2.
Training Services . Customer agrees to obtain, at
Customer’s expense, and Veraz agrees to provide, the
training, if any, specified in an applicable Order.
5.3.
Consulting; and Other Services . Customer agrees to purchase
the professional services, if any, as specified in an applicable
Order. From time to time, at Customer’s reasonable request
and subject to availability of Veraz’s personnel, Veraz will
provide to Customer at Veraz’s then current consulting rates
additional consulting services with respect to the Software and/or
Hardware, subject to terms and conditions for professional services
to be mutually agreed by the parties.
5.4. Support
Services . Provided Customer continues to pay all support fees,
Veraz will provide Support Services as set forth in
Schedule B for (i) Hardware for a period of sixty
(60) months from shipment, (ii) Software for so long as
Veraz continues to offer such Post-Sales Support Services generally
to customers of the Software; and, (iii) if specified in an
Order, Third Party Products for so long as the applicable third
party vendor offers applicable second level support.
5.5.
Obligations of Customer . Customer will provide designated
Veraz personnel access to the Products, including during
Customer’s non-business hours, as is reasonably necessary to
install, maintain and service the Products. Customer will provide,
at Customer’s expense, reasonable working space, utilities,
and adequate secure storage space, if required, for the equipment
and materials which Veraz personnel may reasonably require to
install, maintain and service the Products hereunder. Customer
is
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responsible
for: (a) the results obtained from Customer’s use of the
Products; (b) the integration and interconnection with
Customer’s hardware and/or Third Party Products and/or
systems; and (c) unless otherwise set forth in an Order,
installation of any Third Party Products or Customer
Equipment.
5.6. Veraz
Alterations . Upon reasonable notice (as further specified
below) to Customer, Veraz may make alterations to the Products:
(a) as reasonably necessary to comply with this Agreement,
changed safety standards or governmental regulations, with notice
provided at the time Veraz becomes aware of such required changes;
(b) to make the Products non-infringing with respect to any
patent right, copyright or other proprietary interest, with notice
provided at the time Veraz becomes aware of such required changes;
or (c) to otherwise improve the Products, provided such
improvements do not affect Product form or fit, with notice
provided at least three (3) months before such changes are
implemented.
5.7.
Customer Equipment . Customer must provide Veraz with at
least thirty (30) days written notice of any changes to the
Customer Equipment including, without limitation, model or
operating system changes. If such changes are not compatible with
the Software, then the parties will mutually agree on a solution or
plan to remedy such compatibility issue; unless otherwise expressly
agreed in writing by Veraz, Customer will be responsible for any
additional costs and expenses, including, if applicable, additional
Software license fees, to remedy such compatibility issues with the
Customer Equipment.
5.8.
Deployment Sites . Customer may, at its option, make any
changes deemed necessary to the Deployment Sites set forth in an
Order, provided this Customer provides Veraz with at least thirty
(30) days prior written notice of any changes which may
adversely affect the operation of the Software. In the event such
changes adversely affect the operation of the Software, Veraz
agrees to provide additional Installation Service for a fee to be
mutually agreed upon. In addition, in the event of any changes to
the Deployment Sites of the Hardware which cause compatibility
issues with networks, compliance issues with governmental or other
requirements, or other issues requiring modified Hardware or
Software, Veraz will upon reasonable prior notice, at
Customer’s expense and Veraz’s then-current charges,
provide any generally available additional Hardware or Software to
support the Hardware for any such relocated Deployment
Site.
6.1.
Hardware Warranty . Veraz warrants that for a period of
ninety (90) days from the date of shipment from Veraz the
Hardware and any Software embedded in the Hardware as delivered to
Customer will be free from detects in material and workmanship
under normal use. This limited warranty extends only to Customer as
original purchaser. Customer’s exclusive remedy and the
entire liability of Veraz and its suppliers under this limited
warranty will be, at Veraz’s option, repair or replacement in
accordance with Veraz’s Basic Support Services policies, or a
refund of the purchase price if the Hardware is returned, freight
and insurance prepaid. The repaired or replaced Hardware is
warranted for the longer of ninety (90) days from the date of
shipment of the repaired or replaced Hardware or the remaining
Hardware warranty period. Veraz replacement parts used in Hardware
repair may be new or equivalent to new. All articles must be
properly packed and returned in accordance
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with
Veraz’s then-current Return Material Authorization
(RMA) procedure set forth in the Support Service Details
attached to the Support Services Schedule attached hereto. Where
applicable, before Veraz provides warranty services, Customer
agrees to: (a) follow the problem determination, problem
analysis, and warranty services request procedures that Veraz
provides; (b) secure all programs and data contained in
Hardware; and (c) inform Veraz of changes in the
Hardware’s location or Deployment Site. Veraz will not be
obligated to repair or replace any Hardware or any component of the
Hardware or embedded Software under the warranty terms if Veraz
reasonably believes that such repair or replacement is caused in
whole or in part by: accident; fault or negligence of Customer;
misuse or abuse; improper or unauthorized connection with any
peripheral; external electrical fault; or alteration, modification,
installation, service or repair performed other than by Veraz or by
Veraz’s written permission.
6.2.
Software Warranty . Veraz warrants to Customer, with respect
to the Software separately licensed hereunder and not embedded in
the Hardware, that for a period of ninety (90) days from the date
of shipment from Veraz: (a) the media on which the Software is
furnished will be free from defects in material and workmanship
under normal use; and (b) the Software substantially conforms
to its published specifications. Customer’s exclusive remedy
and the entire liability of Veraz and its suppliers under this
limited warranty will be, at Veraz’s option, repair or
replacement in accordance with Veraz’s standard Basic Support
Services policies, or a refund of the Software license fee upon
return of the Software to Veraz. In no event does Veraz warrant
that the Software is error-free or that Customer will be able to
operate the Software without problems or interruptions. The
foregoing limited warranty applies only to failures in operation of
the Software that are reproducible in standalone form and does not
apply to: (i) Software that is modified by Customer or any
third party; (ii) Software that is operated in violation of
this Agreement or other than in accordance with the published user
Documentation; (iii) failures which are caused by other
software or hardware products; or (iv) any media or copy of
the Software that was not originally purchased or licensed from
Veraz or for which the license fee was not timely paid to Veraz by
Customer.
6.3. Third
Party Products Warranties . Any warranties for Third Party
Products provided hereunder will be passed on to Customer according
to such third party vendor’s warranty coverage. Customer will
follow the required provisions in order to obtain warranty service
on such third party products.
6.4.
Disclaimer . EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION
6, ALL EXPRESS, IMPLIED OR STATUTORY CONDITIONS, TERMS,
REPRESENTATIONS, AND WARRANTIES INCLUDING, WITHOUT LIMITATION, ANY
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY
RIGHTS (BUT NOT IN DEROGATION OF VERAZ’S INDEMNIFICATION
OBLIGATIONS IN SECTION 8), SATISFACTORY QUALITY, ARISING FROM A
COURSE OF DEALING, USAGE, OR TRADE PRACTICE, ARE HEREBY EXCLUDED TO
THE EXTENT ALLOWED BY APPLICABLE LAW. THE PRODUCTS ARE NOT PRICED,
DESIGNED, MANUFACTURED OR INTENDED FOR USE OR RESALE IN HAZARDOUS
ENVIRONMENTS REQUIRING FAIL-SAFE PERFORMANCE, SUCH AS IN
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AIR TRAVEL,
SPACE TRAVEL, FIRE FIGHTING, POLICE OPERATIONS, 911 EMERGENCY
SYSTEMS, POWER PLANT OPERATION, NUCLEAR FACILITIES, MILITARY
OPERATIONS, RESCUE OPERATIONS, HOSPITAL AND MEDICAL OPERATIONS OR
THE LIKE OR ANY OTHER USE IN WHICH THE FAILURE OF THE PRODUCT COULD
LEAD DIRECTLY TO DEATH, PERSONAL INJURY, OR SEVERE PHYSICAL OR
ENVIRONMENTAL DAMAGE (“HIGH RISK ACTIVITIES”). VERAZ
AND ITS SUPPLIERS SPECIFICALLY DISCLAIM ANY EXPRESS OR IMPLIED
WARRANTY OF FITNESS FOR HIGH RISK ACTIVITIES. This disclaimer and
exclusion will apply even if the express warranty set forth above
fails of its essential purpose.
7.1.
Term . This Agreement will commence on the Effective Date
and will continue in effect, unless earlier terminated in
accordance with this Agreement, for a period of ninety days
(90) and thereafter automatically renew for successive ninety
day (90) terms unless either parry gives written notice to the
other party no less than thirty (30) days prior to the
expiration of any such renewal term of its intent not to renew at
the end of such term. Notwithstanding the foregoing, Section 4
(Software License, Restrictions and Proprietary Rights) will
survive any termination of this Agreement under this
Section 7.1 (unless Customer notifies Veraz to the contrary
pursuant to such termination), but will not survive any termination
of this Agreement arising out of Sections 7.2 or 7.3. Customer may
terminate a Software license at any time by destroying all copies
of the Software. Upon termination of a Software license, Customer
must return all copies of the Software and Documentation to Veraz,
or destroy all such copies and certify in writing such destruction
to Veraz.
7.2.
Default . If either parry defaults in the performance of any
of its material obligations including, without limitation,
Customer’s payment obligations hereunder, and if such default
is not corrected within thirty (30) days (ten (10) days
in the case of non-payment) after written notice thereof by the
other party, then the non-defaulting party, at its option, may, in
addition to any other remedies it may have, terminate this
Agreement by giving written notice of termination to the defaulting
party.
7.3.
Bankruptcy . This Agreement may be terminated immediately by
a party without notice if any one of the following occurs: the
other party (i) ceases to carry on business as a going
concern, (ii) becomes the object of the institution of
voluntary proceedings in bankruptcy or liquidation, or
(iii) becomes the object of the institution of involuntary
proceedings in bankruptcy or liquidation, or a receiver is
appointed with respect to a substantial part of its assets, if such
petition or proceeding is not dismissed or receiver discharged
within thirty (30) days of filing or appointment.
7.4.
Nonexclusive Remedy . Termination of this Agreement by
either party will be a nonexclusive remedy for breach and will be
without prejudice to any other right or remedy of such
party.
7.5.
Injunctive Relief . Each party acknowledges that its breach
of Section 4 (Software License, Restrictions, and Proprietary
Rights) or Section 10 (Confidential Information) would cause
irreparable harm to the other party, the extent of which would be
difficult to ascertain. Accordingly, each party agrees that, in
addition to any other remedies to which such other party may be
entitled, such other party
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will have the
right to obtain immediate injunctive relief in the event of a
breach of such sections.
7.6.
Survival . Sections 4.3, 4.4, 4.6, 8, 9, 10, and 11,
and all purchase or payment obligations for Products and Services
incurred prior to the termination of this Agreement, will survive
such termination.
8.1. Veraz
IP Indemnity . Veraz will defend any action brought against
Customer to the extent that it is based upon a claim that a
Product, as provided by Veraz to Customer under this Agreement and
used within the scope of this Agreement, infringes any copyright,
U.S. patent or any patent issued by a member state of the EU, and
Veraz will pay any costs, damages and reasonable attorneys’
fees attributable to such claim that are awarded against Customer
or agreed upon by Veraz in settlement, provided that Customer:
(a) promptly notifies Veraz in writing of the claim;
(b) grants Veraz sole control of the defense and settlement of
the claim; and (c) provides Veraz with all assistance,
information and authority required for the defense and settlement
of the claim. Veraz will not reimburse Customer for any expenses
incurred without the prior written approval of Veraz. Customer may
engage counsel of its choice at its own expense.
8.2.
Injunction . If Customer’s use of any Product
hereunder is, or in Veraz’s opinion is likely to be, enjoined
due to the type of infringement specified in Section 8.1
above, Veraz may, at its sole option and expense: (a) procure
for Customer the right to continue using such Product under the
terms of this Agreement; (b) replace or modify such Product so
that it is non-infringing and substantially equivalent in function
to the enjoined Product; or (c) if options (a) and (b)
above cannot be accomplished despite Veraz’s diligent
efforts, then Veraz may terminate Customer’s rights and
Veraz’s obligations hereunder with respect to such Product
and, upon return of the allegedly infringing item, refund to
Customer the unamortized portion of the fees paid hereunder for
such Product, based upon a straight-line five (5) year
depreciation commencing as of the date of delivery to Customer of
such Product.
8.3.
Exclusions . Notwithstanding the terms of Section 8.1,
Veraz will have no liability for any infringement claim of any kind
to the extent it results from: (a) modification of the Product
made other than by Veraz; (b) the combination, operation or
use of any Product supplied hereunder with equipment, devices or
software not made and supplied by Veraz to the extent such a claim
would have been avoided if the Product were not used in such
combination; (c) failure of Customer to use updated, modified
or substitute Products provided by Veraz to avoid infringement;
(d) use of the Products by Customer other than as authorized
under this Agreement, or (e) compliance by Veraz with designs,
plans or specifications furnished by or on behalf of Customer.
Customer will defend and hold Veraz harmless against any expense,
judgment or loss for alleged infringement of any patents or
copyrights or misappropriation of trade secrets which result from
Veraz’s compliance with Customer’s designs,
specifications or instructions.
8.4. Sole
Remedy . THE FOREGOING PROVISIONS OF THIS SECTION 8 SET FORTH
VERAZ’S AND ITS SUPPLIERS’ SOLE AND EXCLUSIVE
OBLIGATIONS, AND CUSTOMER’S SOLE AND EXCLUSIVE REMEDIES, WITH
RESPECT TO INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS.
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8.5.
Customer Indemnity . Customer will defend any action brought
against Veraz to the extent that it results from or in connection
with the use, manufacture, or distribution of Customer’s
products and Customer’s direct and indirect end users in any
country, and Customer will pay any costs, damages and reasonable
attorneys’ fees attributable to such claim that are awarded
against Veraz or agreed upon by Customer in settlement, provided
that Veraz: (a) promptly notifies Customer in writing of the
claim; (b) grants Customer sole control of the defense and
settlement of the claim; and (c) provides Customer with all
assistance, information and authority required for the defense and
settlement of the claim. Customer will not reimburse Veraz for any
expenses incurred without the prior written approval of Customer.
Veraz may engage counsel of its choice at its own expense. This
indemnification obligation will not apply to infringement actions
or claims if such actions or claims are based solely on the use of
the Hardware or Software in the form provided by Veraz.
9.
LIMITATION OF LIABILITY
9.1.
Limitation . NEITHER PARTY NOR ITS THIRD PARTY SUPPLIERS AND
LICENSORS WILL BE LIABLE TO THE OTHER WITH RESPECT TO ANY SUBJECT
MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT
LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY, AND WHETHER OR NOT
SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE,
(A) FOR ANY PUNITIVE, SPECIAL, INCIDENTAL OR CONSEQUENTIAL
DAMAGES OR LOST DATA, OR (B) FOR COST OF PROCUREMENT OF
SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES, OR (C) FOR LOSS OR
CORRUPTION OF DATA OR INTERRUPTION OF USE, OR (D) FOR ANY
AMOUNTS IN EXCESS, IN THE AGGREGATE, OF THE FEES PAID OR OWED TO
VERAZ HEREUNDER FOR THE ORDER TO WHICH THE CAUSE OF ACTION OR CLAIM
IS COVERED OR RELATED. NOTHING IN THIS AGREEMENT WILL LIMIT A
PARTY’S LIABILITY FOR FRAUD OR FOR DEATH OR PERSONAL INJURY
CAUSED BY A PARTY’S NEGLIGENCE.
9.2.
Exceptions . The liability limitations set forth in
Section 9.1 above do not apply to: (a) either
party’s breach of its confidentiality obligations set forth
in Section 10 below; or (b) Customer’s breach of the
license grant and restrictions set forth in Section 4 above,
or any infringement of Veraz’s Intellectual Property
Rights.
10.
CONFIDENTIAL INFORMATION
10.1.
Confidential Information . As used in this Agreement, the
term “Confidential Information” means any confidential
information disclosed by one party to the other pursuant to this
Agreement. Confidential Information may also include oral
information disclosed by one party to the other pursuant to this
Agreement. Notwithstanding any failure to so identify disclosed
information as Confidential Information, (a) the terms of this
Agreement, information pertaining to the Software and Documentation
including without limitation, the development status of the
Software or Hardware, the functionality of the Software or
Hardware, the appearance, content and flow of the Software’s
user interface and the Documentation and all materials relating to
Veraz’s or Customer’s customers, products, and business
which Veraz or Customer makes available to Customer or Veraz
hereunder will be deemed to be Confidential Information; and
(b) any
-10-
information
disclosed in circumstances of confidence, or would be understood by
the parties, exercising reasonable business judgment, to be
confidential, including information viewed or learned by a party
during a visit to the other party’s facilities, will be
deemed Confidential Information.
10.2.
Confidentiality . Each party will treat as confidential all
Confidential Information of the other party, will not use such
Confidential Information except as set forth herein, and will use
reasonable efforts not to disclose such Confidential Information to
any third party. Without limiting the foregoing, each of the
parties will use at least the same degree of care that it uses to
prevent the disclosure of its own confidential information of like
importance to prevent the disclosure of
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