Document:

exhibit_4-10.htm

Exhibit 4.10

 

	

Cisco Proprietary & Confidential

	NP-4 NP-4C Architectural Specifications

 

CISCO, MARVELL AND EZCHIP

BUSINESS TERM AGREEMENT

The purpose of this Business Term Agreement (“Agreement”) is to agree on key business terms between Cisco Systems, Inc. a California corporation, having principal offices at 170 West Tasman Drive, San Jose, California 95134-1706 (“Cisco”), Marvell International Ltd., a Bermuda corporation, with offices at Argyle House, 41a Cedar Avenue, Hamilton, HM 12, Marvell Israel Ltd. (formerly know as Marvell Semiconductor Israel Ltd), an Israeli corporation, with offices at 6 Hamada Street, Mordot HaCarmel Industrial Park, Yokneam, Israel 20692, (Marvell International Ltd. and Marvell Israel Ltd. are collectively referred to as “Marvell”), EZchip Technologies Ltd., an Israel corporation, having principal offices at 1 Hatamar Street, Yokneam 20692, Israel, and EZchip Inc., a Delaware corporation, having principal offices at 900 E. Hamilton Avenue, Suite 100, Campbell, California 95008, (EZchip Technologies Ltd. and EZchip Inc. are collectively referred to as “EZchip”) to meet Cisco’s technical and business requirements for certain Cisco products.  This Agreement shall be effective as of the date last signed by the parties below (the “Effective Date”) between and among the parties and their affiliates identified below.

BACKGROUND

 

A.           Marvell International Limited, a Bermuda corporation with offices at Argyle House, 41a Cedar Avenue, Hamilton, HM 12, together with Marvell Semiconductor Israel Ltd (which subsequently changed its name and currently operates under the name Marvell Israel Ltd), an Israeli corporation located at 6 Hamada Street, Mordot HaCarmel Industrial Park, Yokneam, Israel 20692, and EZchip Technologies Ltd,  an Israeli corporation located at 1 Hatamar Street, PO Box 527 Yokenam, 20692, (“EZchip”) are parties to the Technology Development, License and Manufacturing Agreement dated April 12, 2006 (“DLA”), and

 

B.           Cisco Systems International B.V., a Netherlands corporation, with offices at Hoogoorddreef 9, 1101 BA, Amsterdam, Netherlands, and Marvell Technology Group Ltd., a Bermuda corporation, with business offices at Richmond House, 3rd Floor, #12 Par la Ville Road, Hamilton, HM DX Bermuda 1, are parties to a [*] Agreement (“[*]”) dated [*].

 

C.           Cisco Systems, Inc., Marvell International Ltd., and Marvell Israel Ltd., together with EZchip have previously agreed to a “Cisco/Marvell/EZChip Business Term Agreement,” pertaining to the “NP3C” network processor.

 

D.           Cisco Systems, Inc., Marvell International Ltd. and EZchip Technologies Ltd. are parties to a Software License Agreement for EZChip Design Development Tools, dated on or about April 11, 2007, pursuant to which certain EZchip software is licensed to Cisco (the “SLA”).

 

E.           Cisco, Marvell and EZchip now wish to establish the terms and conditions for the development, licensing and manufacture of the next generation network processor, identified as “NP4” (also known as NP4-G) and “NP4C (also known as NP4-C).”

 

* This portion of the Agreement has been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the Securities Exchange Act of 1934. The complete Agreement, including the portions for which confidential treatment has been requested, has been filed separately with the Securities and Exchange Commission.

 

  

  

  

 

	

Cisco Proprietary & Confidential

	NP-4 NP-4C Architectural Specifications

 

1.           Identification of Parties

 

Cisco Systems, Inc. and Cisco Systems International B.V., and their affiliates, are collectively referred to as “Cisco”.

 

Marvell Technology Group, Marvell International Ltd., and Marvell Israel Ltd are collectively referred to as “Marvell.”

 

EZchip Technologies Ltd. and EZchip Inc. are collectively referred to as “EZchip.”

 

Marvell and EZchip are each a “Supplier” and collectively referred to as the “Suppliers”.

2.           Representations and Warranties:

Marvell and EZchip represent and warrant that they have entered into the DLA which includes support obligations by EZchip, protection of confidential information, intellectual property licenses from EZchip and intellectual property (IP) escrow provisions. Marvell represents that the terms of the DLA are sufficient for Marvell to fulfill its obligations to Cisco under this Agreement.

Marvell represents that it has entered into appropriate support arrangements and Marvell represents that it possesses sufficient rights and licenses to EZchip’s intellectual property rights, needed by Marvell Technology Group Ltd., a Bermuda corporation with offices at Richmond House, 3rd Floor, #12 Par la Ville Road, Hamilton, HM DX Bermuda 1, (“Marvell Technology Group”) to fulfill its obligations to Cisco with respect to manufacture, sale and support of network processors described herein for the duration of time set forth in the [*]

 

List of intellectual property licensed by Marvell from EZchip for the purposes of developing the network processor described in this Agreement:

	
(i)

	
Network processor technology

	
(ii)

	
Traffic management technology

	
(iii) 

	
The EZchip Intellectual Property Listed on Exhibit B

3.           Escrow

Without limiting any other right or remedy of Cisco, the requisite EZchip intellectual property, manufacturing information and materials relating to the network processors described in this Addendum shall be placed in escrow by EZchip for release to Marvell at any time upon the occurrence of any of the events set forth in Exhibit C (each a “Trigger Event”) to allow Marvell to manufacture and sell the network processors to Cisco.  Marvell will ensure that all such EZchip intellectual property, manufacturing information and materials are placed in escrow.

4.           Ownership

As between EZchip and Marvell, EZchip acknowledges that Marvell shall own the mask set for the NP4C network processor (excluding any Cisco intellectual property and any EZchip intellectual property). Notwithstanding, EZchip shall retain ownership of the EZchip intellectual property and derivatives thereof, excluding any Cisco intellectual property.

 

* This portion of the Agreement has been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the Securities Exchange Act of 1934. The complete Agreement, including the portions for which confidential treatment has been requested, has been filed separately with the Securities and Exchange Commission.

 

  

2

  

 

	

Cisco Proprietary & Confidential

	NP-4 NP-4C Architectural Specifications

 

5.           Marvell Responsibilities

 

Marvell will be responsible for manufacturing, qualification and selling of the network processor described in this Agreement to Cisco, at Cisco’s election.  Subject to the terms of the DLA, EZchip shall be responsible for the qualification of the EZchip intellectual property licensed by EZchip to Marvell.

 

Subject to the terms of the DLA, Marvell shall license EZchip intellectual property rights and combine it with Marvell intellectual property to develop the NP4 and NP4C.  The NP4C will have and perform the features and functionalities described in Exhibit A in accordance with any technical or other specifications for the NP4C.

 

Marvell will promptly disclose to EZchip the non-binding twelve (12) month forecasts and shipping plans of Cisco’s requirements for the NP4C and NP3C on a monthly basis.

 

6.           Exclusivity

 

Definitions:

 

“NP4” means the next version to the NP3 network processor that EZchip will make generally available to customers as set forth herein.

 

“NP4C” means the Cisco-specific version of the NP4 network processor.  Marvell and EZchip will make the NP4C available to Cisco on an exclusive basis as set forth herein.

 

“General Merchant Silicon” for the purposes of this Agreement shall mean off-the-shelf network processors made generally available to third parties by Marvell or EZchip (i.e., the NP3 and NP4).

 

“NP4 Samples” means pre-production NP4 network processors that have not completed or passed electrical testing and reliability testing, and are not deemed to be production qualified by EZchip.

 

[*]

 

Exclusivity periods:

 

[*]

 

Exclusivity periods for [*]:

 

[*]

 

* This portion of the Agreement has been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the Securities Exchange Act of 1934. The complete Agreement, including the portions for which confidential treatment has been requested, has been filed separately with the Securities and Exchange Commission.

 

  

3

  

 

	

Cisco Proprietary & Confidential

	NP-4 NP-4C Architectural Specifications

 

 

If NP4C Product Unavailable to Cisco:

 

If at any time Cisco reasonably believes (i) Marvell or EZChip is or will be unable to manufacture, deliver, or sell the NP4C to Cisco and its designated third parties in the quantities requested by Cisco or (ii) there are significant bugs or performance issues in the NP4C, then the Suppliers agree that they will offer to sell and deliver the NP4 to Cisco and its designated third parties in the quantities requested by Cisco, subject to the exclusivity terms.  After the Distribution Exclusivity Period has expired, the Suppliers may sell and distribute the NP4 to third parties. The price for each NP4 purchased by Cisco or on its behalf by Cisco’s designated third parties shall be [*].

 

[*]

 

7.           Pricing:

 

[*]

 

8.           Schedule and Milestone:

	
Milestone

	
Committed

	
Description

	
Full chip final RTL drop

	
[*]

	
Fully verified, Timing fixed, Final netlist

	
Last ECO

	
[*]

	
No ECO beyond this date

	
Tape-Out  (base layers)

	
[*]

	  
	
Samples @ Marvell Israel

	
[*]

	
With Expedites, Hand Carry, Super Hot Lots

	
Samples @ Cisco

	
[*]

	
Blind samples can be available earlier

9.           NP4 and NP4C Marking Requirement

[*]

10.         Confidentiality

 

The parties have executed a non disclosure agreement dated Feb 2, 2006 (“NDA”). To the extent that the term stated in the NDA terminates prior to the termination of this Agreement, the parties agree that the term of the NDA shall be automatically extended to the term of this Agreement.  In addition, notwithstanding any limitations in the NDA, the NDA shall apply to all Confidential Information disclosed in connection with this Agreement, and the purpose of such disclosures shall include the purposes of this Agreement.  The parties agree that the contents of this Agreement are Confidential Information within the meaning of that term in the NDA, and that neither will disclose to any third party the existence, intent or terms of this Agreement or the occurrence, content or other information about any discussions, or negotiations which have occurred or will occur, except in accordance with the NDA.  To the extent there is a conflict between the confidentiality obligations of this Agreement and the NDA with respect to the [*], the confidentiality obligations of this Agreement will control.

 

* This portion of the Agreement has been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the Securities Exchange Act of 1934. The complete Agreement, including the portions for which confidential treatment has been requested, has been filed separately with the Securities and Exchange Commission.

 

  

4

  

 

	

Cisco Proprietary & Confidential

	NP-4 NP-4C Architectural Specifications

 

11.         Limitation of Liability

NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, EXCEPT FOR I) BREACH OF CONFIDENTIALITY OBLIGATIONS HEREUNDER; OR II) BREACH OF ANY OBLIGATION PURSUANT TO SECTION 6, EXCLUSIVITY, UNDER NO CIRCUMSTANCES WILL A PARTY, ITS EMPLOYEES, OFFICERS OR DIRECTORS, AGENTS, SUCCESSORS OR ASSIGNS BE LIABLE TO THE OTHER PARTIES UNDER ANY CONTRACT, STRICT LIABILITY, TORT (INCLUDING NEGLIGENCE) OR OTHER LEGAL OR EQUITABLE THEORY, FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR COSTS, INCLUDING, WITHOUT LIMITATION, LOST PROFITS, ARISING OUT OF, OR RELATING IN ANY WAY TO, THE SUBJECT MATTER OF THIS AGREEMENT, REGARDLESS OF WHETHER A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  THIS SECTION DOES NOT LIMIT A PARTY'S LIABILITY FOR BODILY INJURY (INCLUDING DEATH), OR PHYSICAL DAMAGE TO TANGIBLE PROPERTY.  EACH PARTY ACKNOWLEDGES THAT THIS WAIVER OF CONSEQUENTIAL AND OTHER DAMAGES REFLECTS THE ALLOCATION OF RISKS BETWEEN THEM AND FORMS AN ESSENTIAL PART OF THE BARGAIN BETWEEN THEM.

12.         General Terms

 

Any terms not defined in this Agreement shall have the meaning stated in the DLA, [*], and/or SLA.  Except as modified by this Agreement, all terms and conditions of the DLA, [*], and SLA shall remain in full force and effect.  In the event of a conflict between the terms and conditions of this Agreement and any terms and conditions of the DLA, [*], and/or SLA, this Agreement will prevail with regard to the subject matter herein to the extent that a party is a party to such an agreement.

 

This Agreement and the DLA, [*], and SLA are the complete agreements between the parties to the extent that a party is a party to such an agreement and supersede all prior oral and written agreements, representations, warranties and commitments of the parties regarding subject matter herein.

[SIGNATURE PAGE FOLLOWS]

 

* This portion of the Agreement has been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the Securities Exchange Act of 1934. The complete Agreement, including the portions for which confidential treatment has been requested, has been filed separately with the Securities and Exchange Commission.

 

  

5

  

 

	

Cisco Proprietary & Confidential

	NP-4 NP-4C Architectural Specifications

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed.  Each party warrants and represents that its respective signatories whose signatures appear below have been and are on the date of signature duly authorized to execute this Agreement.

 

	
CISCO SYSTEMS, INC.

 

	 	
Marvell International Ltd.

	  
	
By

	
/s/ Prasad Sabada

	 	
By

	
/s/ Ken Goertzen

	  
	
Name

	
Prasad Sabada

	 	
Name

	
Ken Goertzen

	  
	
Title

	
Senior Director, CVCM

	 	
Title

	
Alternate Director

	  
	
Date

	
December 7, 2010

	 	
Date

	
September 3, 2010

	  
	
 

EZchip Technologies Ltd.

 

	 	
 

EZchip Inc.

	  
	
By

	
/s/ Eli Fruchter

	 	
By

	
/s/ Eli Fruchter

	  
	
Name

	
Eli Fruchter

	 	
Name

	
Eli Fruchter

	  
	
Title

	
CEO

	 	
Title

	
CEO

	  
	
Date

	
November 11, 2010

	 	
Date

	
November 11, 2010

	  

Marvell Israel Ltd

 

	
By

	
/s/ Eliaz Lavy

	  
	
Name

	
Eliaz Lavy

	  
	
Title

	
Sr. V.P. and G.M M.I.S.L.

	  
	
Date

	
October 17, 2010

	  

 

  

6

  

 

	

Cisco Proprietary & Confidential

	NP-4 NP-4C Architectural Specifications

 

Exhibit A

[*]

 

* This portion of the Agreement has been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the Securities Exchange Act of 1934. The complete Agreement, including the portions for which confidential treatment has been requested, has been filed separately with the Securities and Exchange Commission.

 

  

7

  

 

	

Cisco Proprietary & Confidential

	NP-4 NP-4C Architectural Specifications

Exhibit B

 

List of EZchip IP

 

NP-4 Features

 

	
§

	
Single-chip, programmable, 100-Gigabit throughput (50-Gigabit full duplex)

wire-speed network processor

	
§

	
On-chip scaling bus options for up to 100G full duplex processing and TM

	
§

	
Line card, services card and pizza box applications

	
§

	
Based on EZchip’s NP-3 with performance scaling and an enhanced feature set

	
§

	
On-chip Control CPU, and host offload

	
§

	
On-chip Fabric Interface Controller for interfacing with Ethernet fabrics as well as third-party fabric solutions

	
§

	
System-wide traffic management

	
§

	
Ingress and egress traffic management with hierarchical scheduling

	
§

	
Flexible processing with programmable packet parsing, classifying, modifying and forwarding

	
§

	
Embedded search engines eliminating the need for external search co-processors

	
§

	
On-chip OAM protocol processing offload

	
§

	
Internal switch, for line card scaling, and enhanced data flow flexibility

	
§

	
FIC (Fabric Interface Chip) functionality integration for direct connection to cell based and packet based switching complex, including basic Ethernet fabrics

	
§

	
System-wide traffic management with end-to-end QoS, dedicated QOS CPU

	
§

	
Ten XAUI interfaces

	 	
§

	
Supports RXAUI protocol

	
§

	
24 quad-speed SGMII ports or

48 tri-speed QSGMII ports

	
§

	
Support for OC-768

	
§

	
Support for 100G Ethernet

	
§

	
On-chip hardware time stamping supporting IEEE1588v2

	
§

	
Support for CES and Synchronous Ethernet ITU-T8261

	
§

	
PCI-Express external host interface

	
§

	
Comprehensive on-chip diagnostic hardware support

 

  

8

  

 

 

Embedded search engines

	
§

	
Table entries stored in DRAM; no CAM or SRAM necessary

	 	
§

	
Reducing system chip count, power dissipation and cost

	 	
§

	
Providing up to 2 Gbytes lookup tables headroom

	
§

	
Multiple routing, classification and policy lookup tables with millions of entries per table

	
§

	
Flexible keys and results (associated information) programmed per table

	
§

	
Support for long keys (up to 80 bytes) and long results (up to 96 bytes) per table entry

Content-aware stateful classifying and processing

	
§

	
Access to all 7 layers for classify and modify

	
§

	
Maintain state of millions of sessions simultaneously

	
§

	
On-chip state updates and learning of millions of sessions per second

Programming

	
§

	
Large code space memory for multiple and complex applications

	 	
§

	
[*]

	 	
§

	
Hitless code upgrades

	
§

	
Single-image programming model with no parallel programming or multi-threading

	
§

	
Automatic ordering of frames

	
§

	
Automatic allocation of frames to processing engines (TOPs)

	
§

	
Automatic passing of messages among TOPs

	
§

	
Microcode compatible with EZchip’s NP-3 and NP-2 (NP-2a and NP-2b) network processors

 

* This portion of the Agreement has been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the Securities Exchange Act of 1934. The complete Agreement, including the portions for which confidential treatment has been requested, has been filed separately with the Securities and Exchange Commission.

 

  

9

  

 

 

Interfaces

	
§

	
Ten XAUI interfaces:

	 	
§

	
Ten on-chip 10G/20G MACs

	 	
§

	
3.125Gbps; 6.25Gbps per lane

	 	
§

	
Channelized operation with up to 256 channels

	 	
§

	
In band and out of band flow control

	 	
§

	
Connection to Ethernet and TDM framers

	 	
§

	
Cell-based and packet-based operation

	 	
§

	
Support for SPAUI and Interlaken

	 	
§

	
Supports RXAUI protocol

	
§

	
24 quad-speed SGMII Ethernet interfaces or

48 tri-speed QSGMII Ethernet interfaces

	
§

	
External Host interface:

	 	
§

	
1-lane PCI-Express 2.5Gbps for control CPU interface

	 	
§

	
Additional 2xSGMII GE ports

	
§

	
MDC/MDIO master port for 1G copper PHY; continuous polling mode by HW

	 	
§

	
There are 3 master interfaces: 2 for SGMII ports, 1 for XAUI ports

	 	
§

	
All masters support both clause 24 (1G) and clause 45 (10G)

	
§

	
LED interface for port status exporting

	
§

	
External memory interfaces:

	 	
§

	
External TM memory interface (optional):

	 	
§

	
DDR3 SDRAM

	 	
§

	
666 MHz DDR; 8x16 bit

	 	
§

	
4 GB max. (16M frames)

	 	
§

	
External lookup table memory interface:

	 	
§

	
DDR3

	 	
§

	
666 MHz DDR; 4x32 bit

	 	
§

	
4 GB max.

	 	
§

	
8 DDR3 devices

	 	
§

	
External statistics memory interface:

	 	
§

	
RLDRAM2-SIO

	 	
§

	
533 MHz DDR; 2x18 bit

	 	
§

	
1/2 devices

	 	
§

	
ECC protected internal and external memories

	
§

	
External TCAM interface:

	 	
§

	
Especially useful for fast lookups through large tables with wildcards, such as Access Control Lists (ACL)

	 	
§

	
Interlaken-LA, 24 lanes, 6.25Gbps, 400Mkps, 1600sps

Integrated Traffic Management

	
§

	
Unified 50/100Gbps Traffic Manager

	
§

	
200Mpps throughput

	
§

	
Combines both ingress and egress functionality

	
§

	
Dynamic hitless resource allocation

	
§

	
Dynamic hitless reconfiguration

	
§

	
Dynamic concatenated TM scheme

	
§

	
LAG shaping

	
§

	
Work conserving and non-work conserving schedulers

 

  

10

  

 

 

	
§

	
Frame sizes from 1 byte to 16 KB

	
§

	
Up to 4 Gbytes total frame memory

	
§

	
Up to 16M frames

	
§

	
Per Flow Queuing (PFQ) with 5-level hierarchical scheduling:

	 	
§

	
32 interfaces

	 	
§

	
256 ports

	 	
§

	
4K subports

	 	
§

	
32K classes/users

	 	
§

	
256K flows (8-16 per subscriber)

	
§

	
8 classes of service per subscriber

	
§

	
Advanced per packet control:

	 	
§

	
Per packet IPG

	 	
§

	
Per packet internal switch destination & COS

	 	
§

	
Per packet WRED profile reference

	
§

	
Dynamic mapping of all hierarchies

	
§

	
Dual shaper in each hierarchy

	
§

	
Programmable priority propagation in all hierarchies

	
§

	
External TM control bus for external user-defined scheduler

	
§

	
Policing: Per-flow metering, marking and policing for millions of flows

	
§

	
Configurable WRED profiles

	
§

	
Per flow per color WRED statistics

	
§

	
Shaping: Single and Dual leaky bucket on committed/peak rate/bursts (CIR, CBS, PIR, PBS), with IFG emulation for accurate rate control

	
§

	
Scheduling: WFQ and priority scheduling at each hierarchy level

	
§

	
Per frame statistics

	
§

	
Per frame timestamp and timeout drop

	
§

	
Hardware flow control per port

	
§

	
Flow control generation management scheme based on a per source and/or destination port accounting

Operations and Management Offload

	
§

	
KeepAlive frame generation for precise and accurate session maintenance operations

	
§

	
KeepAlive watchdog timers for fastest detection time

	
§

	
802.1ag compliant full offload

	
§

	
Per OAM session state tracking and reporting

	
§

	
Flexible statistics and performance monitoring

Data Flow Features

[*]

TOP Features

[*]

Statistics and Counters

	
§

	
Up to 16M 64-bit counters via external memory

 

* This portion of the Agreement has been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the Securities Exchange Act of 1934. The complete Agreement, including the portions for which confidential treatment has been requested, has been filed separately with the Securities and Exchange Commission.

 

  

11

  

 

 

	
§

	
Per-flow statistics for programmable events, traffic metering, policing and shaping

	
§

	
Programmable threshold settings and threshold exceeded notification

	
§

	
Dynamic allocation and auto association between counters and flows. Counters are automatically recycled when a flow is deleted or aged.

	
§

	
Auto implementation of token bucket per flow (srTCM or trTCM or MEF5):

	 	
§

	
Hardware implementation of token bucket calculations and coloring (i.e. green, yellow, red)

Power Management

	
§

	
Per interface power-up/power-down

	
§

	
Configurable number of active TOP engines at each stage, for best power optimization per application

 

Diagnostics

	
§

	
Interface built-in self test (BIST) for all NP-4 memory interfaces

	
§

	
Remote and internal loopback on all SGMII/QSGMII and XAUI interfaces

	
§

	
Externally controlled 64-bit RTC with time stamping and time loading support

	
§

	
Activity meters for all NP-4 clock domains with 64-bit phase meters per clock, supporting synchronous time stamp latching

	
§

	
PLL status monitors

	
§

	
Power management monitors on all NP-4 clock and power domains

 

  

12

  

 

 

Exhibit C

 

A Triggering Event refers to any of the following:

1.     Termination by Marvell of the Technology Development, License and Manufacturing Agreement dated April 12, 2006 (“DLA”) due to any of the following.

(a)           EZchip becomes insolvent or makes a general assignment for the benefit of its creditors, or EZchip dissolves, except where such dissolution results directly from:

	
  

	
(i)

	
a corporate reorganization which results in the holders of a majority of EZchip’s voting securities - prior to such reorganization - (x) continuing to hold at least 51% of the voting securities of the entity surviving such reorganization, or (y) holding substantially all of the assets of EZchip and continuing to operate the business of EZchip, or

	
  

	
(ii)

	
EZchip merging with or into a third party, as a result of which holders of EZchip’s equity securities prior to the merger hold less than 50% of the equity securities of EZchip after the closing of such merger; or, EZchip sells all or substantially all of its assets to a third party, and based on Marvell’s reasonable discretion, said third party is not a competitor of Marvell with respect to the subject matter of this Agreement;

(b)           a voluntary or involuntary petition or proceeding is commenced by or against EZchip under the Federal Bankruptcy Act or any other statute of any state or country relating to insolvency or the protection of the rights of creditors, or any other insolvency or bankruptcy proceeding or other similar proceeding for the settlement of EZchip’s debt is instituted and is not dismissed within 60 days from the date of such filing; or

(c)           a receiver of all or substantially all of EZchip’s property is appointed, and is not removed within 30 days;

In these situations, Marvell shall be entitled deliver to the Escrow Agent and EZchip a Release Notice together with an affidavit. The Escrow Agent shall be required to promptly confirm receipt by EZchip.

The Escrow Agent shall release the escrowed technology to Marvell between 5 and 10 business days from the escrow agent receiving notice confirmation from EZchip; unless the triggering event is cured. A triggering event is cured if EZchip provides sufficient evidence to this effect.

2.            Additional Triggering Events

 

(a)           EZchip materially breaches the DLA provided the breach requires Marvell’s use of any escrowed technology to remedy said breach.

 

  

13

  

 

 

(b)           EZchip materially fails to perform its support obligations under the Statement of Work applicable to the NP4-C (other than due to Marvell’s failure to perform its obligations in connection with such development) after the occurrence of (i) an “M&A Transaction” (as defined herein) or (ii) a Change of Control (as defined below) in EZchip, LanOptics Ltd., or any other parent company of EZchip.

For purposes of this Exhibit C, “M&A Transaction” means the merger of EZchip with or into a third party, as a result of which holders of EZchip’s equity securities prior to the merger hold less than 50% of the equity securities of EZchip after the closing of such merger, or EZchip sells all or substantially all of its assets to a third party and “Change of Control” means a transaction or series of transactions in which EZchip, LanOptics Ltd. or any other parent company of EZchip undergoes a change in the party or parties that directly or indirectly own more than fifty percent (50%) of the voting stock or shares or other form of entity ownership (e.g. partnership interests).

In these situations, Marvell shall provide EZchip with a written notice informing EZchip of the occurrence of such event in reasonable detail.  By no later than 30 days following the receipt of such written notice, EZchip shall be required to provide Marvell with a written cure plan in reasonable detail with the steps which EZchip intends to take in order to cure such plan. Marvell shall be entitled to disclose such plan to Cisco under an obligation of confidentiality.

In the event that EZchip fails to (i) provide Marvell an acceptable cure plan within such thirty (30) day period, or (ii) EZchip fails to cure the triggering event within the period specified in an accepted plan, Marvell shall be entitled to deliver the Release notice and Affidavit to the Escrow Agent (with a copy to EZchip).  The Escrow Agent shall be required to promptly obtain Notice Confirmation from EZchip.

 

The Escrow Agent shall release the escrowed technology to Marvell between 5 and 10 business days from the escrow agent receiving notice confirmation from EZchip; unless EZchip provides sufficient evidence that it has provided a plan within the 30 day period above or it has complied or is in compliance with the plan. Marvell shall return the escrowed technology to the Escrow Agent upon the sooner of (a) the date twelve (12) months after the release date, or (b) the date that the applicable triggering event is cured.

(c)           EZchip does not, or revokes, the license to its requisite Intellectual Property Rights to Marvell to (xx) enable Marvell combine the EZchip Intellectual Property Rights with Marvell’s intellectual property and (yy) develop the NP4 and NP4C for Cisco, without material cause by Marvell.

3.             EZchip’s material and ongoing failure to perform or propose a Bug Fix deemed by Cisco to be required with respect to the NP4-C, the applicable Deliverables or the applicable Design Materials.

	
  

	
·

	
Deliverables and Design Materials include EZchip IP, licensed software, technology and materials associated with the NP4-C.

 

  

14

  

 

 

In this situation, EZchip shall have a period of 90 days following the receipt of Marvell’s written notice and demand for cure to provide a plan that describes EZchip’s plan to provide a bug fix. Marvell agrees to provide assistance and shall have the right to audit EZchip on a weekly basis. Should it be determined by Marvell, acting reasonably, that the plan is not being executed in accordance with its terms due to a failure by EZchip, Marvell shall be entitled to deliver a Release Notice and Affidavit to the Escrow Agent (with a copy to EZchip). The Escrow Agent shall be required to promptly confirm the receipt by EZchip (with a copy to EZchip) ad EZchip’s confirmation that the plan is not being executed in accordance with its due to a failure on its part.

The Escrow Agent shall release the escrowed technology to Marvell between 5 and 10 business days from the escrow agent receiving notice confirmation from EZchip; unless EZchip provides sufficient evidence that it has provided the Bug Fix or it has complied or is in compliance with the plan. Marvell shall return the escrowed technology to the Escrow Agent upon the sooner of (a) the date twelve (12) months after the release date, or (b) the date that EZchip provides the applicable Bug Fix.

15exhibit_4-11.htm

Exhibit 4.11

 

CUSTOM SALES AGREEMENT                                                                                                                     

 

BASE AGREEMENT

 

	
International Business Machines Corporation

	
281 Winter Street

	  	
Waltham, MA 02451, USA

Agreement No. 000590

E.Z. Chip:              E.Z.Chip Technologies Ltd.

Ramat Gabriel Industrial Park

POB 184

10551 Migdal Haemek

Israel

This Custom Sales Agreement between E.Z. Chip Technologies Ltd. (“E.Z. Chip”) and International Business Machines Corporation (“IBM”), which consists of this Base Agreement and Statement of Work Attachments, shall be referred to as the “Agreement”. The term of this Agreement commences on the last date of signature below and expires five (5) years thereafter.

 

By signing below, the parties each agree to be bound by the terms and conditions of this Agreement including the initial Statement of Work, Attachment No. 1, and no additional signature on the initial Statement of Work is required. Subsequent Statement of Work Attachments under this Agreement must be signed by the parties to become effective.

 

Upon signature by both parties, it is agreed this Agreement constitutes the complete and exclusive agreement between them superseding all contemporaneous or prior agreements and other communications between them, written or oral, relating to the subject matter of this Agreement, notwithstanding anything contained in any document issued by either party. This Agreement may not be amended or modified except by a written amendment signed by duly authorized signatories of both parties.

 

The parties expressly acknowledge that they have received and are in possession of a copy of any referenced item which is not physically attached to the Agreement and any such item will be treated as if attached.

 

	
Accepted and Agreed To:

E.Z. Chip Technologies Ltd.

 

By: /s/ Eli Fruchter      

Name: Eli Fruchter

Title:   President and CEO

 

30/10/2000

	
International Business Machines Corporation

 

 

By: John Beiswenger      

Name: John Beiswenger

Title:   Exec. Mgr. MD WW Contracts & 

Business Practices, IBM Technology Group

28 October 2000

 

  

  

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

1.0  DEFINITIONS

 

Capitalized terms in this Agreement have the following meanings. An Attachment may define additional terms; however, those terms apply only to that Attachment.

 

 1.1           “Item” shall mean any part, specification, design, document, report, data or the like which E.Z. Chip delivers to IBM under this Agreement and which E.Z. Chip marks as “Use Restricted”, “Confidential” or “Proprietary”.

 

 1.2           “Product” shall mean production units to be sold or purchased under this Agreement. Products shall not include Prototypes.

 

 1.3           “Prototype” shall mean a preliminary version of a Product which may or may not be functional, is intended for internal use and testing and not for resale, and is not suitable for production in commercial quantities.

 

 1.4           “Purchase Order Lead Time” shall mean the required minimum amount of time between IBM’s receipt of the purchase order issued by E.Z. Chip and the requested shipment date that is necessary to accommodate manufacturing cycle time.

 

 1.5           “Related Company” of a party hereunder shall mean a corporation, company or other entity which controls or is controlled by such party or by another Related Company of such party, where control means ownership or control, direct or indirect, of more than fifty (50) percent of: (i) the outstanding voting shares or securities (representing the right to vote for the election of directors or managing authority), or (ii) the ownership interests representing the right to make decisions for such a corporation, company or other entity (as the case may be in a partnership, joint venture or unincorporated association having no outstanding shares or securities). However, any such corporation, company or other entity shall be deemed to be a Related Company of such party only so long as such ownership or control exists.

 

 1.6           “Service” shall mean any manufacturing activity or design, or engineering work IBM performs.

 

 1.7           “Shipment Date” shall mean IBM’s estimated date of shipment.

 

2.0  AGREEMENT STRUCTURE

 

 2.1           This Agreement consists of: (i) the Base Agreement which defines the basic terms and conditions of the relationship between the parties; and (ii) Attachments which specify the details of a specific work task. An Attachment may include additional or differing terms and conditions, however such terms and conditions apply only to that Attachment. Attachments also include any specification documents agreed to by the parties applicable to the specific work under that Attachment.

 

 2.2           If there is a conflict among the terms and conditions of the various documents, Attachment terms and conditions govern.

 

  

- 2 -

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

 2.3           Except for Product part numbers, part number descriptions, prices and quantities, purchase orders and acknowledgements will be used to convey information only and any terms and conditions on those are void and replaced by this Agreement.

 

 2.4           E.Z. Chip and its wholly owned subsidiaries may order under this Agreement. Either party may include its other Related Companies under this Agreement by written agreement with the other party.

 

 2.5           For non-U.S. sales (E.Z. Chip takes title outside the U.S.), the contract of sale for Products and/or Prototypes purchased under this Agreement will be between the IBM legal entity that will supply the Products and/or Prototypes (“the Plant”) and E.Z. Chip. It is agreed that all such orders will incorporate the terms of this Agreement whether expressly referenced or not, and will only be accepted subject to the terms of this Agreement. Orders will be accepted by the Plant when it issues an acceptance document thereby creating the contract of sale for the Products. IBM reserves the right to enforce the provisions of this Agreement on behalf of the Plant.

 

 2.6           For U.S. sales (E.Z. Chip takes title within the U.S.), the contract of sale for Products and/or Prototypes purchased under this Agreement will be between IBM and E.Z. Chip.

 

 2.7           Any purchase order submitted by E.Z. Chip during the term of this Agreement (whether or not it references this Agreement) for Products, Prototypes, or Services from IBM’s Microelectronics Division shall be subject to and governed by the terms and conditions of this Agreement, unless there is another signed, written agreement in place between IBM and E.Z. Chip with respect to the subject matter of the purchase order. The foregoing shall be in effect regardless of whether E.Z. Chip and IBM have executed any Attachment specific to the Products, Prototypes, or Services ordered. If no such Attachment has been executed, then the terms of the Attachment most recently executed by E.Z. Chip and IBM shall control, except with respect to those matters which are uniquely applicable to the specific Product, Prototype or Service in question (such as specific NRE charges, Product pricing, specific Items and deliverables, Product names and descriptions, Purchase Order Lead Times, and demand forecasts).

 

3.0  ORDER AND DELIVERY

 

 3.1           E.Z. Chip shall order Products, Prototypes and Services by issuing written purchase orders, which are subject to acceptance by IBM. Purchase orders must be received by IBM in advance, allowing at least for the Purchase Order Lead Time specified in the applicable Attachment. IBM shall be entitled not to accept any purchase order from E.Z. Chip (i) if such purchase order does not comply with the terms and conditions of this Agreement and any applicable Attachment (for example, the purchase order is for Products, Prototypes or Services in a quantity beyond that provided in this Agreement and any applicable Attachment, specifies a price other than that provided in this Agreement and any applicable Attachment, or is for an item not listed in an applicable Attachment as a Product, Prototype or Service) and/or (ii) the acceptance and performance of which would result in IBM incurring liability for breach of an existing contractual obligation to a third party concerning a commitment to provide capacity to such third party, but in any such case IBM shall be entitled not to accept the purchase order only after it has sought to agree to an alternative delivery schedule with E.Z. Chip  based upon the earliest available capacity and/or (iii) which IBM is not able to perform due to a supply constraint (as defined in Section 5.1. below).

 

  

- 3 -

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

 3.2           E.Z. Chip is responsible for all freight and duty charges from IBM’s shipping location. Title and risk of loss pass to E.Z. Chip upon tender to the carrier for shipment to E.Z. Chip. At E.Z.Chip’s request, IBM will support E.Z. Chip in procuring, at E.Z. Chip’s expense, shipping and insurance for the Products.

 

4.0  EZCHIP’s RESPONSIBILITIES

 

E.Z. Chip represents and warrants that:

 

 4.1           Products will be: (1) integrated or incorporated into systems sold under E.Z. Chip’s logo or trade name unless otherwise specified by IBM in writing; or (2) distributed in incidental additional quantities for use as service or upgrade parts in systems E.Z. Chip has sold.  E.Z. Chip may also use up to 5% of the Products internally.

 

 4.2           E.Z. Chip will not use any Products, Prototypes or Services acquired hereunder, or sell or transfer such Products, Prototypes or Services to any others including civilian end users for use, in conjunction with medical devices, military or nuclear applications.

 

 4.3           E.Z. Chip will keep suitable records to show compliance with this Agreement.  At IBM’s request, E.Z. Chip will demonstrate to IBM that E.Z. Chip has fully complied with the Agreement’s terms.

 

 4.4           E.Z. Chip  will not: (1) make any representations or warranties about IBM or IBM’s involvement in the design, engineering or manufacturing of Products, Prototypes or Services other than those IBM specifically authorizes in writing; or (2) take any action or make any commitment on IBM’s behalf.

 

5.0  CANCELLATION AND RESCHEDULING

 

 5.1           In the event that IBM’s ability to supply Product becomes constrained, IBM may, as IBM deems reasonable, reduce quantities or delay shipments to E.Z. Chip. IBM’s ability to supply a Product is “constrained” any time when demand (based on forecasts, pending and/or committed orders) from all IBM customers (including internals and externals) exceeds the available supply for products that use the same or similar technology, manufacturing process and/or components as the Product. IBM will provide E.Z. Chip with notice of any such supply constraint after IBM has knowledge of the constraint.

 

 5.2           E.Z. Chip may cancel or reschedule an order only upon prior written notice to 1BM. In the event of a cancellation or reschedule which exceeds the rescheduling rights set forth in an applicable Attachment, E.Z. Chip shall pay the quoted price for Products, Prototypes and/or Services delivered or ready for shipment and the cancellation charges set forth in the applicable Attachment.

 

  

- 4 -

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

 5.3           In the first year of production, invoiced prices will be based on E.Z. Chip’s 12 months forecast. The parties will meet annually to review and determine any applicable unit price adjustments based on the actual quantities shipped by IBM during the previous year.

 

6.0  PAYMENT

 

 6.1           Prices shall be as set forth in an applicable Attachment. IBM shall invoice E.Z. Chip after the Products or Prototypes have been shipped or the Services provided. E.Z. Chip shall pay the full amount of the invoice within [*] of the invoice date, provided however, that in the event IBM determines E.Z. Chip has exceeded its credit limit with IBM, then IBM shall have the right, in its sole discretion, to require payment before shipment or payment via letter of credit. IBM may stop shipments to E.Z. Chip if E.Z. Chip does not comply with applicable credit terms or limits or this Agreement. Late payment of invoices may be assessed a charge equal to the lesser of 1.5% of the balance due per month or the statutorily allowed maximum rate of interest in accordance with applicable law.

 

7.0  TAXES

 

 7.1           E.Z. Chip is responsible for all taxes related to Products, Prototypes and Services except for taxes based on IBM’s net income.

 

8.0  LIMITED WARRANTY

 

 8.1           IBM warrants all Products to be free from defects in material and workmanship for a period of thirty (30) days from date of shipment unless otherwise stated in an Attachment applicable to such Products. E.Z. Chip acknowledges that the functionality of Products is contingent on E.Z. Chip’s designs and, therefore, such warranty does not apply to the functionality of Products fabricated under this Agreement. IBM does not warrant: (a) uninterrupted or error free operation of the Products; or (b) that IBM will correct all defects. IBM warrants Services will be performed using reasonable care and skill.

 

 8.2           IBM’s sole liability and E.Z. Chip’s sole remedy for breach of warranty shall be limited as stated in this Section 8 and Section 12, and in applicable Attachments.

 

 8.3           If E.Z. Chip claims that any Products are nonconforming, E.Z. Chip shall (1) promptly notify IBM in writing of the basis for such nonconformity; (2) follow IBM’s instructions for return of the Products; and (3) at IBM’s request, return the Products freight collect to the IBM designated location. IBM has sole discretion to apply minimum return quantities.

 

* This portion of the Agreement has been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the Securities Exchange Act of 1934. The complete Agreement, including the portions for which confidential treatment has been requested, has been filed separately with the Securities and Exchange Commission.

 

  

- 5 -

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

 8.4           If IBM determines such Products do not meet the warranty, IBM will, at its option, repair or replace the Products or issue a credit at the price in effect as of the date of the credit. If IBM replaces the Products, the returned Products become IBM’s property, but may not be re-sold by IBM and shall be used solely for quality control analysis destroyed or stripped from its properties and recycled. This warranty does not cover Products that are defective because of: (a) accident, abuse, misuse, negligence, modification, or improper maintenance; (b) failure caused by a product which IBM did not provide or for which IBM is not responsible; or (c) use or storage in other than IBM’s specified operating environment. This warranty is void if Product labels have been removed or altered.

 

 8.5           This warranty is not transferable. No course of dealing, course of performance, usage of trade, or description of Product, Prototype or Service shall be deemed to establish a warranty, express or implied.

 

 8.6           ALL PROTOTYPES ARE PROVIDED “AS IS” WITHOUT WARRANTY OR INDEMNIFICATION OF ANY KIND BY IBM.

 

 8.7           THE FOREGOING WARRANTIES ARE E.Z. CHIP’S EXCLUSIVE WARRANTIES AND REPLACE ALL OTHER WARRANTIES OR TERMS, EXPRESS OR IMPLIED, INCLUDING THE WARRANTY OF NONINFRINGEMENT AND THE IMPLIED WARRANTIES OR TERMS OF MERCHANTABILITY, FITNESS OR USAGE FOR PARTICULAR PURPOSE, AND SATISFACTORY QUALITY.

 

9.0  PATENTS AND COPYRIGHTS

 

 9.1           If a third party claims that a Product or Service IBM provides to E.Z. Chip infringes that party’s patent or copyright, IBM will defend E.Z. Chip against that claim at IBM’s expense and pay all costs, damages, and attorney’s fees that a court finally awards, provided that E.Z. Chip:

 

1.           promptly notifies IBM in writing of the claim; and

 

2.           allows IBM to control, and cooperates with IBM in, the defense and any related settlement negotiations.

 

If such a claim is made or appears likely to be made, E.Z. Chip agrees to permit IBM to enable E.Z. Chip to continue to use the Product or Service, or to modify it, or replace it with one that is at least functionally equivalent. If IBM determines that none of these alternatives is reasonably available, E.Z. Chip agrees to return the Product or Service to IBM upon written request. IBM will then provide E.Z. Chip a credit equal to the amount E.Z. Chip paid for the given Product or Service.

 

  

- 6 -

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

This is IBM’s entire obligation to E.Z. Chip regarding any claim of infringement.

 

 9.2           IBM shall have no obligation regarding any claim based on any of the following:

 

  1.           anything E.Z. Chip provides which is incorporated into a Product or Service (including, but not limited to, specifications, designs, documents, reports, or data);

 

  2.            E.Z. Chip’s modification of a Product or Service;

 

  3.           the combination, operation, or use of a Product or Service with any product, data, or apparatus that IBM did not provide; or

 

  4.           infringement by a non-IBM product alone, as opposed to its combination with Products IBM provides to E.Z. Chip as a system.

 

 9.3           If a third party claims that a Product or Service IBM provides to E.Z. Chip infringes that party’s patent or copyright, and such claim is based upon any of the factors specified in Section 9.2, E.Z. Chip will defend IBM against that claim at E.Z. Chip’s expense and pay all costs, damages, and attorney’s fees that a court finally awards, provided that IBM:

 

  1.           promptly notifies E.Z. Chip in writing of the claim; and

 

  2.           allows E.Z. Chip to control, and cooperates with E.Z. Chip in, the defense and any related settlement negotiations.

 

10.0  INTELLECTUAL PROPERTY RIGHTS AND LICENSES

 

 10.1           E.Z. Chip warrants that it is the originator, rightful owner or licensee of all Items supplied to IBM hereunder and that to the best of E.Z. Chip’s knowledge no part of such Items infringes any intellectual property rights.

 

 10.2           Title to all intellectual property rights in respect of Items shall be vested in E.Z. Chip, except to the extent that the intellectual property contained in any Item belongs to IBM or another party, or is otherwise in the public domain.

 

 10.3           IBM or its licensors shall retain and have all intellectual property rights (including, without limitation, mask work rights) associated with, and process technology furnished by IBM in connection with, the Products, and their design, development or manufacture, including, but not limited to:

 

   I.           all base diffusion layers;

 

   II.          all IBM-licensed design rules, libraries, macros, cores/IP blocks; and

 

  

- 7 -

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

   III.         all IBM-furnished modifications of any such elements,

 

save to the extent, if any, that such intellectual property rights and such circuitry design are furnished by, or originate from E.Z. Chip.

 

 10.4           Any individual who has seen Items under this Agreement shall not be precluded from working on other projects including those that relate to similar subject matter, provided that the individual does not make reference to the Items and does not copy the substance of the Items for use on such other projects. Furthermore, nothing herein shall be construed as restricting IBM from disclosing or using any general learning, skills or know-how developed by its personnel as a result of having access to Items under this Agreement, if a person of ordinary skill in the relevant area would not regard such actions as a material disclosure or use of the specific Items.

 

IBM may disclose the Items to its consultants and contractors with a need to know. Such disclosure shall comply with the terms and conditions of the Confidential Agreement No. C00754-X03038 entered into by the parties on 18 May 2000.

 

 10.5           Subject to the provisions of sections 10.2, and 10.3 and 10.4, IBM shall use Items only for the purposes of fulfilling this Agreement and for no other purpose whatsoever.

 

 10.6           The unique mask work right in the final overall mask set for each Product shall be the joint property of IBM and E.Z. Chip. At E.Z. Chip’s request and expense, IBM shall apply for mask work protection in the names of E.Z. Chip and IBM jointly. Neither party shall use such mask work right otherwise than for enforcing such right against any infringer thereof. Each party agrees that the other party may proceed independently against any infringer of such mask work right. Neither party shall have a duty of accounting to the other with respect any of such proceedings or profits derived from its interest in such mask work right as a result of such proceedings.

 

 10.7           E.Z. Chip acknowledges and agrees that place and route data, database tapes, mask sets (including the final overall mask set for the Products) and other customized data relating to the Products contain proprietary information of IBM as well as of E.Z. Chip and such materials shall, therefore, be held at all times in IBM’s custody. IBM shall own any tangible mask made by IBM using documents, drawings and models provided by E.Z. Chip. IBM shall use any tangible netlist tapes, test tapes and GDS II tapes received from E.Z. Chip or generated exclusively for E.Z. Chip under this Agreement, and any mask made from such GDS ll tapes, only to manufacture the Products to be sold to E.Z. Chip.

 

 10.8           IBM shall not have any right without the prior written consent of E.Z. Chip to manufacture, sell or license any of the Products developed hereunder to any third party.

 

 10.9           No license, immunity or other right is granted herein to E.Z. Chip, whether directly or by implication, estoppel, or otherwise, with respect to any patent, trademark, copyright, mask work, trade secret, utility model, know-how, or other intellectual property rights, with the exception of E.Z. Chip’s right to use Products supplied hereunder. Such right does not include any license or immunity, express or implied, under any patent of IBM or its Related Companies covering the combination of the Products with other products purchased from others or the use of any such combination, or under a patent or other intellectual property right of any third party relating to the combination of the Products with any other products. The right to use any such patent or any such other intellectual property right must be licensed separately and directly from the owner(s) thereof.

 

  

- 8 -

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

11.0  TRADEMARK

 

 11.1           Nothing in this Agreement grants either party any rights to use the other party’s trademarks or trade names, directly or indirectly, in connection with any product, prototype, service, promotion, publication or publicity without prior written approval of the other party or trademark or trade name owner.

 

12.0  LIMITATION OF LIABILITY

 

 12.1           Circumstances may arise where, because of a default on IBM’s part or other liability, E.Z. Chip is entitled to recover damages from IBM. In each such instance, regardless of the basis on which E.Z. Chip is entitled to claim damages from IBM (including fundamental breach, negligence, misrepresentation, or other contract or tort claim), the following terms apply as Customer’s exclusive remedy and IBM’s exclusive liability.  IBM is liable for no more than:

 

   1.           payments referred to in the patents and copyrights terms above;

 

   2.           damages for bodily injury (including death) and damage to real property and tangible personal property; and

 

   3.           the amount of any other actual direct damages up to the greater of U.S. $[*] (or equivalent in local currency) or the charges for the Product or Service that is the subject of the claim.

 

This limit also applies to any of IBM’s subcontractors. It is the maximum for which IBM and its subcontractors are collectively responsible.

 

 12.2           Under no circumstances is IBM, or its subcontractors, liable for any of the following:

 

   1.           third-party claims against E.Z. Chip for damages (other than those under the first two items listed above);

 

* This portion of the Agreement has been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the Securities Exchange Act of 1934. The complete Agreement, including the portions for which confidential treatment has been requested, has been filed separately with the Securities and Exchange Commission.

  

- 9 -

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

2.           loss of, or damage to, E.Z. Chip’s records or data; or

 

3.           special, incidental, or indirect damages or for any economic consequential damages (including lost opportunities, profits and savings), even if IBM is informed of their possibility.

 

13.0  TERMINATION

 

 13.1           If either party materially breaches a term of this Base Agreement or an Attachment, the other party may, at its option, terminate this Agreement or any or all Attachments provided the party in breach is given written notice and fails to cure such breach within 30 days or immediately in the event of (i) insolvency, dissolution or liquidation by or against either party, (ii) any assignment of either party’s assets for the benefit of creditors, or (iii) any act or omission of an act by a party demonstrating its inability to pay debts generally as they become due or (iv) any transfer of substantially all of either’s business or assets to a third party (other than (A) in the context of the first merger or take-over of such party as a whole following signature of this Agreement or (B) a transfer of E.Z. Chip’s business or assets to LanOptics Ltd., or to a third party in which the beneficial ownership is substantially the same as in E.Z. Chip at the time of transfer). If IBM has a reasonable basis to believe any of the Items infringe an intellectual property right of any third party, IBM may immediately terminate its obligations hereunder as to Products relating to such Items.

 

 13.2           If IBM terminates this Agreement or an Attachment, IBM shall be entitled to treat any or all applicable outstanding purchase orders as if cancelled by E.Z. Chip and E.Z. Chip shall pay (i) all applicable IBM procurement costs, (ii) (in the case of affected Products, Prototypes and/or Services delivered or ready for shipment) the quoted applicable price, and (iii) (in any other case) the cancellation charges set forth in the applicable Attachment or Attachments. Monies owing IBM shall become immediately due and payable.

 

 13.3           If E.Z. Chip terminates this Agreement or an Attachment, IBM will fill all applicable previously accepted purchase orders for Products, but IBM shall not be obligated to accept further applicable purchase orders after receiving notice.

 

 13.4           This Base Agreement will continue after its termination or expiration with respect to any Attachments already in place until they expire, are terminated or completed. Provided that no monies are due IBM, applicable Items shall be disposed of as directed by E.Z. Chip in writing at E.Z. Chip’s expense after a termination or expiration.

 

14.0  EXPORT REGULATIONS

 

 14.1           Regardless of any disclosure made by E.Z. Chip to IBM of an ultimate destination of Products, Prototypes and technical data, E.Z. Chip will not export either directly or indirectly any Product, Prototype or technical data, or any system incorporating them, without first obtaining all required licenses and permits from all relevant government agencies and departments. In addition, E.Z. Chip warrants that Products and Prototypes are not for space or missile use, do not contain encryption, and do not relate to radiation hardened design, circuitry, manufacturing or testing.

 

  

- 10 -

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

 14.2           Whenever IBM arranges for export or import, with respect to all relevant governmental and administrative authorities, including the United States and European Union, E.Z. Chip: (1) recognizes that IBM may not know or have reason to know the intended function of E.Z. Chip’s products and technical data and must rely on E.Z. Chip to provide correct information for export and import of Products, Prototypes and technical data, (2) agrees to provide all information necessary to determine all relevant export authorizations and to export and import the Products, Prototypes and technical data, including as applicable the Export Classification Control Number (ECCN) and subheadings, and (3) agrees to assist with obtaining any required licenses and authorizations for export and import of Products, Prototypes and technical data and with making any required filings.  E.Z. Chip shall be fully responsible for the correctness of information provided by E.Z. Chip and any use of it to comply with applicable regulations.

 

14.3           FAILURE TO COMPLY WITH THE EXPORT REGULATIONS PROVISIONS ABOVE SHALL VOID ALL WARRANTIES PROVIDED BY IBM HEREIN.

 

15.0  NOTICES

 

 15.1           All communications and notices between the parties concerning this Agreement shall be in writing given to the appropriate individual listed in the applicable Attachment, or his/her successor, and shall be deemed sufficiently made on the date personally served or sent in a manner that generates a reliable written receipt (e.g. via mail, facsimile or electronic data interchange). Communication by facsimile or electronic data interchange is acceptable as a “writing.”  The autographs of representatives of the parties, as received by facsimile or electronic data interchange, shall constitute “original” signatures.

 

16.0  INDEPENDENCE OF ACTION

 

 16.1           Each party agrees that this Agreement will not restrict the right of either party to enter into agreements with other parties for same or similar work, or to make, have made, use, sell, buy, develop, market or otherwise transfer any products or services, now or in the future, so long as confidential information is not disclosed. IBM shall not sell, market or otherwise transfer to any third party any Products using the trademark or trade name of E.Z. Chip without prior written consent.

 

17.0  GENERAL

 

 17.1           With the exception of the foregoing and the terms and conditions of this Agreement, no information exchanged between the parties shall be considered confidential. In the event E.Z. Chip or IBM needs to disclose specific confidential information to the other in order for IBM to furnish Products, Prototypes and/or Services hereunder, such information shall be disclosed only pursuant to the terms of the Confidential Disclosure Agreement (the “CDA”) no. C00754-X03038 entered into by the parties on 18 May 2000, which shall govern the use by each party of the Information (as defined in the CDA) of the other. E.Z. Chip shall not disclose the terms or conditions of this Agreement without IBM’s prior written approval, except to the extent required by securities or other laws.

 

  

- 11 -

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

 17.2           Each party shall comply, at its own expense, with all applicable United States (local, state and federal), European Union, and other country or country group laws and regulations, and shall procure all licenses and pay all fees and other charges required thereby.

 

 17.3           Except for E.Z. Chip’s obligation to pay, neither party will be responsible for failing to perform under this Agreement for acts of God, natural disasters, or other similar causes beyond its reasonable control.

 

 17.4           The validity, construction, and performance of this Agreement will be governed by the substantive laws of the State of New York, United States, as though this Agreement were executed in and fully performed within the State of New York and without regard to any conflict of laws provisions. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement. Neither party will bring a legal action against the other more than two (2) years after the cause of action arose, except for actions for non-payment or to enforce intellectual property rights. Both parties waive the right to a jury trial in any dispute arising out of this Agreement. Both parties agree that any action concerning this Agreement shall be brought in a court of competent jurisdiction in the State of New York and hereby consent to the personal jurisdiction of any such court and to service of process in the manner provided for the giving of notices pursuant to this Agreement. If, notwithstanding the foregoing, a New York court’s judgment is not enforceable against a party, the other party may bring such an action in any court of competent jurisdiction.

 

 17.5           E.Z. Chip may not assign its rights or delegate its obligations under this Agreement without the prior written consent of IBM, which IBM agrees not to withhold or condition in the event of all (or substantially all) of E.Z. Chip’s business as a whole being acquired for the first time by a third party following signature of this Agreement.

 

 17.6           No delay or failure by either party to act in the event of a breach or default hereunder shall be construed as a waiver of that or any subsequent breach or default of any provision of this Agreement.

 

 17.7           If any part, term or provision of this Agreement is declared unlawful or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect.

 

 17.8           The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

 17.9           Once signed by both parties, any reproduction of this Agreement made by reliable means (e.g. photocopy or facsimile) is considered an original.

 

  

- 12 -

  

 

EXECUTION COPY

IBM & EZCHIP CONFIDENTIAL

 

 17.10           Any terms of this Agreement which by their nature extend beyond expiration or termination of this Agreement shall remain in effect until fulfilled and shall bind the parties and their legal representatives, successors, heirs and assigns.

 

 17.11           This Agreement is in English language only, which shall be controlling in all respects, and all versions hereof in any other language shall be for accommodation only and shall not be binding upon the parties hereto. All communications and notices to be made or given pursuant to this Agreement shall be in English language.

 

 17.12           This Agreement is not intended to and does not benefit any party except IBM (including the Plant) and E.Z. Chip. It is the parties’ express intent that this Agreement is not a third party beneficiary contract.

 

- 13 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]