Document:

exv10w1

 

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

     This Employment Agreement (“Agreement”), including the attached Exhibit “A,” is entered into
between the Inn of the Mountain Gods Resort and Casino, a Mescalero Apache Tribal enterprise,
having offices at 287 Carrizo Canyon Road, Mescalero, New Mexico 88340 (“Employer”), and Brian D.
Parrish, an individual currently residing at 125 Mira Monte Road, Post Office Box 2072, Alto, New
Mexico 88312 (“Employee”), to be effective as of the 12th day of September, 2005 (the
“Effective Date”).

WITNESSETH

     WHEREAS, Employer desires to employ Employee in the position set forth on Exhibit “A” and
under the terms and conditions set forth in this Employment Agreement.

     WHEREAS, Employee is willing to accept employment with Employer under the terms and conditions
set forth in this Employment Agreement; and

     NOW, THEREFORE, for and in consideration of the mutual promises, covenants, and obligations
contained herein, Employer and Employee agree as follows:

ARTICLE 1: EMPLOYMENT AND DUTIES:

     1.1 Employer agrees to employ Employee, and Employee agrees to be employed by Employer,
beginning as of the Effective Date and continuing until the date set forth on Exhibit “A” (the
“Term”), subject to the terms and conditions of this Agreement.

     1.2 Employee initially shall be employed in the position set forth on Exhibit “A.” Employer
may subsequently assign Employee to a different position or modify Employee’s duties and
responsibilities; provided however, in the event Employer substantially reduces the duties or
responsibilities of Employee, Employee may elect to terminate this Agreement pursuant to Article 3
below. Employee agrees to serve in the assigned position and to perform diligently and to the best
of Employee’s abilities the duties and services appertaining to such position as determined by
Employer, as well as such additional or different duties and services appropriate to such position
which Employee from time to time may be reasonably directed to perform by Employer. Employee shall
at all times comply with and be subject to such policies and procedures as Employer may establish
from time to time.

     1.3 Employee shall, during the period of Employee’s employment by Employer, devote Employee’s
full business time, energy, and best efforts to the business and affairs of Employer and its
Enterprises or other entities. Employee may not engage, directly or indirectly, in any other
business, investment, or activity that interferes with Employee’s performance of Employee’s duties
hereunder, is contrary to the interests of Employer, or requires any significant portion of
Employee’s business time.

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     1.4 In connection with Employee’s employment by Employer, Employer shall endeavor to provide
Employee access to such information pertaining to the business and services of Employer as is
appropriate for Employee’s employment responsibilities. Employer also shall endeavor to provide to
Employee the opportunity to develop business relationships with those of Employer’s clients and
potential clients that are appropriate for Employee’s employment responsibilities.

     1.5 Employee acknowledges and agrees that at all times during the employment relationship
Employee owes fiduciary duties to Employer, including but not limited to the fiduciary duties of
the highest loyalty, fidelity and allegiance to act at all times in the best interests of the
Employer, to make full disclosure to Employer of all information that pertains to Employer’s
business and interests, to do no act which would injure Employer’s business, its interests, or its
reputation, and to refrain from using for Employee’s own benefit or for the benefit of others any
information or opportunities pertaining to Employer’s business or interests that are entrusted to
Employee or that Employee learned while employed by Employer. Employee acknowledges and agrees that
upon termination of the employment relationship, Employee shall continue to refrain from using for
Employee’s own benefit or the benefit of others any information or opportunities pertaining to
Employer’s business or interests that were entrusted to Employee during the employment relationship
or that Employee learned while employed by Employer. Employee agrees that while employed by
Employer and thereafter Employee shall not knowingly take any action that interferes with the
internal relationships between Employer and its employees or representatives or interferes with the
external relationships between Employer and third parties.

     1.6 It is agreed that any direct or indirect interest in, connection with, or benefit from any
outside activities, particularly commercial activities, which interest might in any way adversely
affect Employer or any of its Enterprises or other entities, involves a possible conflict of
interest. In keeping with Employee’s fiduciary duties to Employer, Employee agrees that during the
employment relationship Employee shall not knowingly become involved in a conflict of interest with
Employer or its affiliates, or upon discovery thereof, allow such a conflict to continue. Moreover,
Employee agrees that Employee shall disclose to Employer’s Chairperson or the Chief Operating
Officer should such duty be so delegated, same herein referred to as “Chairperson” any facts that
might involve such a conflict of interest that has not been approved by Employer’s Chairperson.
Employer and Employee recognize that it is impossible to provide an exhaustive list of actions or
interests that constitute a “conflict of interest.” Moreover, Employer and Employee recognize there
are many borderline situations. In some instances, full disclosure of facts by the Employee to
Employer’s Chairperson or the Chief Operating Officer should such duty be so delegated, may be all
that is necessary to enable Employer or its affiliates to protect its interests. In others, if no
improper motivation appears to exist and the interests of Employer or its affiliates have not
suffered, prompt elimination of the outside interest will suffice. In still others, it may be
necessary for Employer to terminate the employment relationship. Employer and Employee agree that
Employer’s determination as to whether a conflict of interest exists shall be conclusive. Employer
reserves the right to take such action as, in its judgment, will end the conflict.

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     1.7 Employee understands and acknowledges that the terms and conditions of this Agreement
constitute confidential information. Employee shall keep confidential the terms of this Agreement
and shall not disclose this confidential information to anyone other than as required by law.
Employee acknowledges and understands that disclosure of the terms of this Agreement constitutes a
material breach of this Agreement and could subject Employee to disciplinary action, including
without limitation, termination of employment.

ARTICLE 2: COMPENSATION AND BENEFITS:

     2.1 Employee’s monthly base salary during the Term shall be not less than the amount set forth
under the heading “Monthly Base Salary” on Exhibit “A,” subject to increase at the sole discretion
of the Employer, provided however, that Employee shall receive an annual cost of living increase
based on the percentage specified by Employer for all of Employer’s employees or a mutually
agreeable federal governmental index, which shall be paid in accordance with Employer’s standard
payroll practice. Any calculation to be made under this Agreement with respect to Employee’s
Monthly Base Salary shall be made using the then current Monthly Base Salary in effect at the time
of the event for which such calculation is made.

     2.2 While employed by Employer, Employee shall be allowed to participate, on the same basis
generally as other employees of Employer, in all general employee benefit plans and programs,
including improvements or modifications of the same, which on the effective date or thereafter are
made available by Employer to all or substantially all of Employer’s employees. Such benefits,
plans, and programs may include, without limitation, paid vacation, paid sick leave, paid holidays,
and medical, health, and dental care, life insurance, disability protection, and pension plans.
Nothing in this Agreement is to be construed or interpreted to provide greater rights,
participation, coverage, or benefits under such benefit plans or programs than provided to
similarly situated employees pursuant to the terms and conditions of such benefit plans and
programs.

     2.3 While employed by Employer, Employee shall be entitled to reimbursement for all reasonable
expenses, including travel and entertainment, incurred by Employee in the performance of Employee’s
duties. Where time allows, any such request for expenditure shall be approved in advance by the
Chief Operating Officer. Employee will maintain records and written receipts as required by the
Employer’s policy and reasonably requested by the Employer to substantiate such expenses.

     2.4 Employer shall not by reason of this Article 2 be obligated to institute, maintain, or
refrain from changing, amending, or discontinuing, any such incentive compensation or employee
benefit program or plan, so long as such actions are similarly applicable to covered employees
generally. Moreover, unless specifically provided for in a written plan document adopted by the
Management Board of the Inn of the Mountain Gods Resort and Casino, none of the benefits or
arrangements described in this Article 2 shall be secured or funded in any way, and each shall
instead constitute an unfunded and

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unsecured promise to pay money in the future exclusively from the general assets of Employer.

     2.5 Employer may withhold from any compensation, benefits, or amounts payable under this
Agreement all federal, state, or other taxes as may be required pursuant to any law or governmental
regulation or ruling.

ARTICLE 3: TERMINATION PRIOR TO EXPIRATION OF TERM AND EFFECTS OF SUCH TERMINATION:

     3.1 Notwithstanding any other provisions of this Agreement, Employer shall have the right to
terminate Employee’s employment under this Agreement at any time prior to the expiration of the
Term for any of the following reasons:

     (i) For “cause” upon the determination by the Employer’s Chairperson that “cause”
exists for the termination of the employment relationship. As used in this Section 3.1
(i), the term “cause” shall mean [a] Employee’s gross negligence or willful misconduct
in the performance of the duties and services required of Employee pursuant to this
Agreement; [b] Employee has been convicted of a felony; [c] Employee has willfully
refused without proper legal reason to perform the duties and responsibilities required
of Employee under this Agreement which remains uncorrected for thirty (30) days
following written notice to Employee by Employer of such breach; [d] Employee’s
involvement in a conflict of interest as referenced in Section 1.6 for which Employer
makes a determination to terminate the employment of Employee which remains uncorrected
for thirty (30) days following written notice to Employee by Employer of such breach;
[e] Employee has willfully engaged in conduct that Employee knows or should know is
materially injurious to Employer or any of its respective Enterprises or other
entities; [f] Employee’s material breach of any material provision of this Agreement or
Tribal policy which remains uncorrected for thirty (30) days following written notice
to Employee by Employer of such breach; [g] Employee violates the Indian Gaming
Regulatory Act or other applicable United States law as proscribed by Section 5.1; or
[h] Employee no longer has a valid Mescalero Apache Tribal Gaming Commission Gaming
License. It is expressly acknowledged and agreed that the decision as to whether
“cause” exists for termination of the employment relationship by Employer is delegated
to the Employer’s Chairperson for determination. If Employee disagrees with the
decision reached by Employer’s Chairperson, the dispute will be limited to whether
Employer’s Chairperson reached the decision in good faith;

     (ii) for any other reason whatsoever, with or without cause, in the sole
discretion of the Chairperson of Employer;

     (iii) upon Employee’s death; or

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     (iv) upon Employee’s becoming disabled so the Employee is permanently and totally
unable to perform Employee’s duties for Employer as a result of any medically
determinable physical or mental impairment as supported by a written medical opinion to
the foregoing effect by a physician selected by Employer.

The termination of Employee’s employment prior to the expiration of the Term shall constitute a
severance and shall be subject to the terms of Section 3.3 below.

     3.2 Notwithstanding any other provisions of this Agreement except Section 8.6, Employee shall
have the right to terminate the employment relationship under this Agreement at any time prior to
the expiration of the Term of employment of the following reasons:

	 	(i)	 	a material breach by Employer of any material provision of
this Agreement which remains uncorrected for thirty (30) days following
written notice by Employee of such breach to Employer. Any such termination
shall be subject to the provisions of Section 3.3 below.
	 
	 	(ii)	 	for any other reason whatsoever, in the sole discretion of
Employee. Under this subprovision Employee shall not be entitled to rights
under 3.3 below.

     3.3 Upon termination of the employment relationship by either Employer or Employee prior to
the expiration of the Term, in consideration of the Employees continued obligations hereunder,
after such termination (including without limitation Employee’s under Article 6, 7 and Section 8.2
) to receive the then current monthly base salary, benefits, allowance continuation as set forth in
Exhibit A as follows:

	 	(i)	 	Severance calculated at the rate of one month of severance
for each full three (3) months of employment under the terms of this agreement
or any other prior agreement or Executive Employment Agreement previously
executed between Employer and Employee.
	 
	 	(ii)	 	Same should be paid at the time of normal preparation and
issuance of payroll checks, and same shall be reduced by standard deductions
taken from such severance payments.
	 
	 	(iii)	 	Such severance under the provisions of this section shall be
limited to a total of twelve (12) months of severance.

     (iv) Such severance payment shall terminate should employee violate
the provisions of Article 7 (post employment non-competition obligations)
or Section 8.2 (under miscellaneous). Such termination of severance for
any such violation shall be upon giving notice to Employee that such
severance is being stopped

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and no further payment will be made pursuant to the provisions of this
Section.

     3.4 Upon termination of the employment relationship as a result of Employee’s death,
Employee’s heirs, administrators, or legatees shall be entitled to Employee’s pro rata salary
through the date of such termination.

     3.5 In all cases, the compensation and benefits payable to Employee under this Agreement upon
termination of the employment relationship shall be offset against any amounts to which Employee
may otherwise be entitled under any and all severance plans, and policies of Employer.

     3.6 Termination of the employment relationship does not terminate those obligations imposed by
this Agreement that are continuing obligations, including, without limitation, Employee’s
obligations under Articles 6 ,7 and Section 8.2.

     3.7 This Agreement governs the rights and obligations of Employer and Employee with respect to
Employee’s salary and other perquisites of employment.

ARTICLE 4: CONTINUATION OF EMPLOYMENT BEYOND TERM; TERMINATION AND EFFECTS OF TERMINATION:

     4.1 Should Employee remain employed by Employer beyond the expiration of the Term specified on
Exhibit “A,” such employment shall convert to an at will employment for a month to month period
with same terminable at anytime by either Employee or Employer for any reason whatsoever, with or
without cause. During such month to month employment, severance benefits payable under Section 3.3
above, shall continue to accrue. Other than the severance provisions under Section 3.3. above such
termination of the employment relationship by either Employer or Employee for any reason
whatsoever, shall terminate all benefits and rights to Employee except those provided by the
severance package as referred to above.

ARTICLE 5: MESCALERO APACHE TRIBE LAWS, MESCALERO APACHE TRIBAL GAMING COMMISSION REGULATIONS AND
UNITED STATES INDIAN GAMING REGULATORY ACT AND OTHER LAWS:

     5.1. Employee shall at all times comply with applicable Mescalero Apache Tribal laws,
Mescalero Apache Tribal Gaming Commission regulations and United States laws applicable to
Employee’s actions on behalf of Employer, including specifically, without limitation, the Tribal
Gaming Ordinance and the United States Indian Gaming Regulatory Act, generally codified in 25 USC
2701 (“IGRA”), as the IGRA may hereafter be amended, and/or its successor statutes. If Employee
pleads guilty to or nolo contendere or admits civil or criminal liability under the IGRA or other
applicable United States law, or if a court finds that Employee has personal civil or criminal
liability under the IGRA or other applicable United States law, or if a court finds that Employee
committed an action resulting in any Mescalero Apache Tribal Resort Enterprise or other Tribal
Enterprise or entity having civil or criminal liability or responsibility under the IGRA or other

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applicable United States law with knowledge of the activities giving rise to such liability or
knowledge of facts from which Employee should have reasonably inferred the activities giving rise
to liability had occurred or were likely to occur, such action or finding shall constitute “cause”
for termination under this Agreement unless Employer’s highest applicable level of Employer’s
management determines that the actions found to be in violation of the IGRA or other applicable
United States law were taken in good faith and in compliance with all applicable policies of
Employer.

ARTICLE 6: OWNERSHIP AND PROTECTION OF INFORMATION; COPYRIGHTS:

     6.1 All information, ideas, concepts, improvements, discoveries, and inventions, whether
patentable or not, which are conceived, made, developed or acquired by Employee, individually or in
conjunction with others, during Employee’s employment by Employer (whether during business hours or
otherwise and whether on Employer’s premises or otherwise) which relate to Employer’s business,
products or services (including, without limitation, all such information relating to corporate
opportunities, research, financial and sales data, pricing and trading terms, evaluations,
opinions, interpretations, acquisition prospects, the identity of customers or their requirements,
the identity of key contacts within the customer’s organizations or within the organization of
acquisition prospects, or marketing and merchandising techniques, prospective names, and marks)
shall be disclosed to Employer and are and shall be the sole and exclusive property of Employer.
Moreover, all drawings, memoranda, notes, records, files, correspondence, drawings, manuals,
models, specifications, computer programs, maps and all other writings or materials of any type
embodying any of such information, ideas, concepts, improvements, discoveries, and inventions are
and shall be the sole and exclusive property of Employer.

     6.2 Employee acknowledges that the business of Employer, its Enterprises and other entities is
highly competitive and that their strategies, methods, books, records, and documents, their
technical information concerning their products, equipment, services, and processes, procurement
procedures and pricing techniques, the names of and other information (such as credit and financial
data) concerning their customers and business affiliates, all comprise confidential business
information and trade secrets which are valuable, special, and unique assets which Employer, its
Enterprises and other entities use in their business to obtain a competitive advantage over their
competitors. Employee further acknowledges that protection of such confidential business
information and trade secrets against unauthorized disclosure and use is of critical importance to
Employer, its Enterprises and other entities in maintaining their competitive position. Employee
hereby agrees that Employee will not, at any time during or after his employment by Employer, make
any unauthorized disclosure of any confidential business information or trade secrets of Employer,
its subsidiaries and other entities, or make any use thereof, except in the carrying out of his or
her employment responsibilities hereunder. Employer its Enterprises and other entities shall be
third party beneficiaries of Employee’s obligations under this Section. As a result of Employee’s
employment by Employer, Employee may also from time to time have access to, or knowledge of,
confidential business information or trade secrets of third parties, such as customers, suppliers,
partners, joint ventures, and

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the like, of Employer, its subsidiaries and other entities. Employee also agrees to preserve
and protect the confidentiality of such third party confidential information and trade secrets to
the same extent, and on the same basis, as Employer’s confidential business information and trade
secrets. Employee acknowledges that money damages would not be sufficient remedy for any breach of
this Article 6 by Employee, and Employer shall be entitled to enforce the provisions of this
Article 6 by terminating any payments then owing to Employee under this Agreement and/or to
specific performance and injunctive relief as remedies for such breach or any threatened breach.
Such remedies shall not be deemed the exclusive remedies for a breach of this Article 6, but shall
be in addition to all remedies available at law or in equity to Employer, including the recovery of
damages from Employee and his or her agents involved in such breach.

     6.3 All written materials, records, and other documents made by, or coming into the possession
of, Employee during the period of Employee’s employment by Employer which contain or disclose
confidential business information or trade secrets of Employer, its Enterprises and other entities
shall be and remain the property of Employer, its Enterprises and other entities, as the case may
be. Upon termination of Employee’s employment by Employer, for any reason, Employee promptly shall
deliver the same, and all copies thereof, to Employer.

     6.4 If, during Employee’s employment by Employer, Employee creates any original work of
authorship fixed in any tangible medium of expression which is the subject matter of copyright
(such as videotapes, written presentations on acquisitions, computer programs, drawings, maps,
architectural renditions, models, manuals, brochures, or the like) relating to Employer’s business,
products, or services, whether such work is created solely by Employee or jointly with others
(whether during business hours or otherwise and whether on Employer’s premises or otherwise),
Employee shall disclose such work to Employer. Employer shall be deemed the author of such work if
the work is prepared by Employee in the scope of his employment; or, if the work is not prepared by
Employee within the scope of his employment but is specially ordered by Employer as a contribution
to a collective work, as a part of a motion picture or other audiovisual work, as a translation, as
a supplementary work, as a compilation, or as an instructional text, then the work shall be
considered to be work made for hire and Employer shall be the author of the work. If such work is
neither prepared by the Employee within the scope of his employment nor a work specially ordered
and is deemed to be a work made for hire, then Employee hereby agrees to assign, and by these
presents does assign, to Employer all of Employee’s worldwide right, title, and interest in and to
such work and all rights of copyright therein.

     6.5 During the period of Employee’s employment by Employer and thereafter, Employee shall
assist Employer and its nominee, at any time, in the protection of Employer’s worldwide right,
title, and interest in and to information, ideas, concepts, improvements, discoveries, and
inventions, and its copyrighted works, including without limitation, the execution of all formal
assignment documents requested by Employer or its nominee and the execution of all lawful oaths and
applications for applications for patents and registration of copyright in the United States and
foreign countries.

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ARTICLE 7: POST-EMPLOYMENT NON-COMPETITION OBLIGATIONS:

     7.1 As part of the consideration for the compensation and benefits to be paid to Employee
hereunder, in keeping with Employee’s duties as a fiduciary and in order to protect Employer’s
interests in the confidential information of Employer and the business relationships developed by
Employee with the clients and potential clients of Employer, and as an additional incentive for
Employer to enter into this Agreement, Employer and Employee agree to the non-competition
provisions of this Article 7. Employee agrees that during the period of Employee’s non-competition
obligations hereunder, Employee will not, directly or indirectly work for Employee or for others,
in Otero County, Lincoln County, Chaves County and Dona Ana County, New Mexico:

     (i) engage in any business competitive with the business conducted by Employer;

     (ii) render advice or services to, or otherwise assist, any other person,
association, or entity who is engaged, directly or indirectly, in any business
competitive with the business conducted by Employer;

     (iii) induce any employee of Employer, its Enterprises and other entities to
terminate his or her employment with Employer, its Enterprises and other entities, or
hire or assist in the hiring of any such employee by person, association, or entity not
affiliated with Employer.

These non-competition obligations shall extend during the term of this agreement and for twelve
(12) months after termination or expiration whichever should occur last.

     7.2 Employee understands that the foregoing restrictions may limit his ability to engage in
certain businesses during the period provided for above, but acknowledges that Employee will
receive sufficiently high remuneration and other benefits (e.g., the right to receive compensation
under Section 3.3 upon termination) under this Agreement to justify such restriction. Employee
acknowledges that money damages would not be sufficient remedy for any breach of this Article 7 by
Employee, and Employer shall be entitled to enforce the provisions of this Article 7 by terminating
any payments then owing to Employee under this Agreement and/or to specific performance and
injunctive relief as remedies for such breach or any threatened breach. Such remedies shall not be
deemed the exclusive remedies for a breach of this Article 7, but shall be in addition to all
remedies available at law or in equity to Employer, including, without limitation, the recovery of
damages from Employee and his or her agents involved in such breach.

     7.3 It is expressly understood and agreed that Employer and Employee consider the restrictions
contained in this Article 7 to be reasonable and necessary to protect the proprietary information
of Employer. Nevertheless, if any of the aforesaid restrictions are found by a court having
jurisdiction to be unreasonable, or overly broad as to geographic area or time, or otherwise
unenforceable, the parties intend for the restrictions therein set

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forth to be modified by such courts so as to be reasonable and enforceable and, as so modified
by the court, to be fully enforced.

ARTICLE 8: MISCELLANEOUS:

     8.1 For purposes of this Agreement the term “Employer” shall include the Inn of the Mountain
Gods Resort and Casino, Ski Apache, Casino Apache Travel Center and any other Enterprise or entity
of the Inn of the Mountain Gods Resort and Casino.

     8.2 Employee shall refrain, both during the employment relationship and after the employment
relationship terminates, from publishing any oral or written statements about Employer, its
Enterprises and other entities, or any of such entities’ officers, employees, agents or
representatives that are slanderous, libelous, or defamatory; or that disclose private or
confidential information about Employer, its Enterprises and other entities, or any of such
entities’ business affairs, officers, employees, agents, or representatives; or that constitute an
intrusion into the seclusion or private lives of Employer, its Enterprises and other entities, or
such entities’ officers, employees, agents, or representatives; or that give rise to unreasonable
publicity about the private lives of Employer, its Enterprises and other entities, or any of such
entities’ officers, employees, agents, or representatives; or that place Employer, its Enterprises
and other entities, or any of such entities’ or its officers, employees, agents, or representatives
in a false light before the public; or that constitute a misappropriation of the name or likeness
of Employer, its Enterprises and other entities, or any of such entities’ or its officers,
employees, agents, or representatives. A violation or threatened violation of this prohibition may
be enjoined by the courts. The rights afforded the Employer under this provision are in addition to
any and all rights and remedies otherwise afforded by law.

     8.3 For purposes of this Agreement, notices and all other communications provided for herein
shall be in writing and shall be deemed to have been duly given when personally delivered or when
mailed by United States registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

If to Employer:

	 	 	 	 	 
	Chief Operating Officer

	 	 	 	F. Randolph Burroughs, Esq.
	Inn of the Mountain Gods Resort and Casino

	 	and
	 	Burroughs and Rhodes
	287 Carrizo Canyon Road

	 	 	 	906 Virginia Ave.
	Mescalero, New Mexico 88340

	 	 	 	Alamogordo, New Mexico 88310

If to Employee, to the address shown on the first page hereof.

Either Employer or Employee may furnish a change of address to the other in writing in accordance
herewith, except that notices of changes of address shall be effective only upon receipt.

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     8.4 This Agreement shall be governed in all respects by the laws of the Mescalero Apache
Tribe, excluding any conflict-of-law rule or principle that might refer the construction of the
Agreement to the federal courts of the United States.

     8.5 No failure by either party hereto at any time to give notice of any breach by the other
party of, or to require compliance with, any condition or provision of this Agreement shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

     8.6 If a dispute arises out of or related to this Agreement, other than a dispute regarding
Employee’s obligations under Article 6, or Article 7, and if the dispute cannot be settled through
direct discussions, then Employer and Employee agree to first endeavor to settle the dispute in an
amicable manner by mediation, before having recourse to any other proceeding or forum.

     8.7 Each of Employer and Employee is a citizen of the United States of America. Employer’s
principal place of business is in Mescalero, Otero County, New Mexico. This Agreement was
negotiated and signed in Mescalero, New Mexico. This Agreement shall be performed in Mescalero, New
Mexico. Any litigation that may be brought by either Employer or Employee involving the enforcement
of this Agreement or the rights, duties, or obligations of this Agreement, shall be brought
exclusively in the Tribal court sitting in Mescalero, Otero County, New Mexico, or federal courts
having jurisdiction over the Mescalero Apache Tribe.

     8.8 It is a desire and intent of the parties that the terms, provisions, covenants, and
remedies contained in this Agreement shall be enforceable to the fullest extent permitted by law.
If any such term, provision, covenant, or remedy of this Agreement or the application thereof to
any person, association, or entity or circumstances shall, to any extent, be construed to be
invalid or unenforceable in whole or in part, then such term, provision, covenant, or remedy shall
be construed in a manner so as to permit its enforceability under the applicable law to the fullest
extent permitted by law. In any case, the remaining provisions of this Agreement or the application
thereof to any person, association, or entity or circumstances other than those to which they have
been held invalid or unenforceable, shall remain in full force and effect.

     8.9 This Agreement shall be binding upon and inure to the benefit of Employer and any other
person, association, or entity which may hereafter acquire or succeed to all or substantially all
of the business or assets of Employer by any means whether direct or indirect, by purchase, merger,
consolidation, or otherwise. Employee’s rights and obligations under Agreement hereof are personal
and such rights, benefits, and obligations of Employee shall not be voluntarily or involuntarily
assigned, alienated, or transferred, whether by operation of law or otherwise, without the prior
written consent of Employer.

     8.10 There may exist other agreements between Employer and Employee relating to the employment
relationship between them, e.g., the agreement with respect to company policies contained in
Employer’s Policy booklet and agreements with respect to

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benefit plans and health insurance. This Agreement replaces and merges previous agreements and
discussions pertaining to the following subject matters covered herein: the nature of Employee’s
employment relationship with Employer and the term and termination of such relationship. This
Agreement constitutes the entire agreement of the parties with regard to such subject matters, and
contains all of the covenants, promises, representations, warranties, and agreements between the
parties with respect such subject matters. Each party to this Agreement acknowledges that no
representation, inducement, promise, or agreement, oral or written, has been made by either party
with respect to such subject matters, which is not embodied herein, and that no agreement,
statement, or promise relating to the employment of Employee by Employer that is not contained in
this Agreement shall be valid or binding. Any modification of this Agreement will be effective only
if it is in writing and signed by each party whose rights hereunder are affected thereby, provided
that any such modification must be authorized or approved by Employer’s Chief Operating Officer.

     8.11 This agreement supercedes that prior agreement dated October 27, 2005 and amended
November 22, 2006. Further, severance rights accrued to Employee based on a prior agreement when
Employee was Director of Marketing. For accrual purposes, same would be retroactive to date of
such Director of Marketing agreement which is dated December 12, 2002.

     IN WITNESS WHEREOF, Employer and Employee have duly executed this Agreement in multiple
originals to be effective on the date first stated above.

INN OF THE MOUNTAIN GODS

RESORT AND CASINO

	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Mark R. Chino
	 	 
	 	By:
	 	Brian D. Parrish
	 

	 	 
	 	 	 	 	 	 
	Mark R. Chino, Chief Executive Officer	 	 	 	Brian D. Parrish, Employee

This 20th day of December, 2007.

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EXHIBIT “A” TO

EXECUTIVE EMPLOYMENT AGREEMENT

BETWEEN THE

INN OF THE MOUNTAIN GODS RESORT AND CASINO

AND

	 	 	 
	Employee Name:

	 	Brian D. Parrish
	 
	 	 
	Term:

	 	Effective the 12th day of September, 2005 thru the 11th day
of September, 2008.
	 
	 	 
	Position:

	 	Chief Operating Officer
	 
	 	 
	Location:

	 	Mescalero, New Mexico
	 
	 	 
	Reporting Relationship:

	 	To Chairperson of the Inn of the Mountain Gods Resort and Casino
Management Board or any person so designated by the Chairperson.
	 
	 	 
	Monthly Base Salary:

	 	Twenty Nine Thousand One Hundred and Sixty-Six Dollars and 67/100
Dollars ($29,166.67)
	 
	 	 
	Employee Benefits:

	 	Employee, spouse and eligible dependents will be eligible for
immediate coverage for medical, dental and vision benefits to the extent permitted by the Plan Document.
	 
	 	 
	Effective date of this
Amendment:

	 	This agreement supercedes the prior Executive Employment Agreement. All
rights conferred by prior agreements and amendments are incorporated herein by reference.

	 	 	 	 	 	 	 
	/s/ Brian D. Parrish

	 	 	 	     /s/ Mark R. Chino	 	 
	 

Brian D. Parrish, Chief Operating Officer

	 	 
	 	 

Mark R. Chino, Chief Executive Officer
	 	 

This 20th day of December, 2007.

- 13 -exv10w20

 

****TEXT OMITTED AND FILED SEPARATELY

CONFIDENTIAL TREATMENT REQUESTED

BY HYPERCOM CORPORATION

UNDER 17 C.F.R. SECTION 200.80(B)(4),

200.83 AND 240.24b-2

EXHIBIT 10.20

CONTRACT MANUFACTURING AGREEMENT

THIS CONTRACT MANUFACTURING AGREEMENT is made effective as of December 7, 2007 (“Effective Date”)
between Hypercom Manufacturing Resources, Inc., together with its Affiliates a company incorporated
under the laws of the state of Arizona with its principal office at 2851 West Kathleen Road,
Phoenix, Arizona 85053 USA (collectively, “Hypercom”) and Venture Corporation (Singapore) LTD, a
company incorporated in Singapore, with its registered office at 5005 Ang Mo Kio Avenue 5, #05—1/12
TECHplace ll, Singapore 569873 on behalf of itself and its Affiliates (collectively, “Venture”).
Hypercom and Venture are referred to either individually as a “party” or together as the “parties”.

WHEREAS, on the terms and conditions of this Agreement, Hypercom desires that Venture, and Venture
has agreed to, manufacture and supply to Hypercom certain products;

WHEREAS, the parties previously executed a Contract Manufacturing Services and Supply Agreement for
the manufacture and supply of Printed Circuit Board Assemblies for certain Products (“PCBA
Agreement”), and was subsequently amended for the on-site general management support for the
manufacture and delivery of certain products, copies of which are attached hereto in Schedule J;
and

WHEREAS, the parties’ mutual intent and objective in entering into this Agreement is for Venture to
manufacture complete product assemblies (“Top-level Assembly” or “TLA”) for the supply of certain
Products to Hypercom.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Hypercom and
Venture agree as follows:

	1.	 	DEFINITIONS

In this Agreement, in addition to other terms that may be defined in this Agreement, including the
recitals hereto, the following terms, when the first letter is capitalized, whether in singular or
plural form, as appropriate, have the meanings set forth in this Section and all words importing
gender include the masculine, feminine and neuter genders.

	 	1.1	 	“Agreement” means this contract manufacturing agreement, including all Schedules to this
Agreement, as may be amended in accordance with this Agreement from time to time.
	 
	 	1.2	 	“Affiliate” means, with respect to either party, any entity controlling, controlled by, or
under common control with, such party, where “control” (including its correlative meanings,
“controlled by”, “controlling” and “under common control” means with respect to a
corporation, ownership of more than 50% of the shares (attributable to the controlled
corporation) entitled to vote for the election of directors or other managing authority
	 
	 	1.3	 	“AVL” or “Approved Vendor List” means the list of Hypercom-approved suppliers for
Components as may be amended from time-to-time in accordance with this Agreement and the
Quality Management Plan.
	 
	 	1.4	 	“Basic IP” means Intellectual Property developed, licensed to or obtained by a party,
independent of this Agreement, before or after the Effective Date.
	 
	 	1.5	 	“Blanket Purchase Order” means a non-binding purchase order that does not set forth
a specific delivery

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	 	 	 	date, and may cover requirements over an extended period of time. Blanket Purchase Orders are
intended to be used for administrative purposes only in combination with the Rolling Forecast
and Purchase Order or Release.
	 
	 	1.6	 	“BOM” means a Bill of Materials.
	 
	 	1.7	 	“Business Day” means a day, from Monday through Friday, that commences at 12:00am (local
time) and ends on the same day at 11:59pm (local time), and has not been declared as a
national holiday in Malaysia (when referencing an obligation of Venture) or in the United
States (when referencing an obligation of Hypercom).
	 
	 	1.8	 	“Calendar Day” shall mean a calendar day that commences at midnight Pacific Time and ends
on the same day at 11:59 pm (Pacific Standard Time).
	 
	 	1.9	 	“Component Lead Time” means the period of time, as provided by a Component supplier,
between the date a Purchase Order is released by Venture and the date Venture shall have the
Component at the Venture location.
	 
	 	1.10	 	“Confidential Information” has the meaning ascribed to it in the Non-Disclosure Agreement.
	 
	 	1.11	 	“Delivery Date” means in relation to the date the Products must be delivered to the
Delivery Location, as specified on a valid Purchase Order or Release, (as the case may be),
the date on which the Products shall be delivered to the Delivery Location or as otherwise
agreed to by the parties in writing.
	 
	 	1.12	 	“Delivery Location” means the location to which the Products must be delivered, as
specified in a Purchase Order or Release, or such other locations requested in writing by
Hypercom as agreed to by the parties in writing.
	 
	 	1.13	 	“Economic Order Inventory” means any Components for which the quantity of such Component
that the Supplier is required to procure in any single order with the relevant third party
vendor is greater than the quantity of such Component required to fulfill (i) any accepted
Purchase Orders or Releases, or (ii) any Forecasts for a Product which requires such
Component, as the case may be, in order to achieve pricing targets (as set out in Section
8.4) for such Components
	 
	 	1.14	 	“Effective Date” means the date first shown above.
	 
	 	1.15	 	“Employee Acknowledgement” means that acknowledgement in the form designated by Hypercom,
to be executed by certain employees of Venture that visit any Hypercom facility or that
receive Hypercom’s Confidential Information (as defined in the NDA).
	 
	 	1.16	 	“ECN” or “Engineering Change” means an engineering change notice as defined in Section
12.1.1.
	 
	 	1.17	 	“Excess Inventory” means those Components, materials and supplies ordered by Venture to
fulfill Hypercom’s requirements under this Agreement, but which were not drawn down
completely from Venture’s inventory for the manufacture of the Products within a period of
[****] months after such Components, materials and supplies were ordered, or if such
Components, materials and supplies were utilized by Venture in the manufacture of the
Products but Hypercom failed to purchase such Products within a period of [****] months after
such Components, materials and supplies were utilized by Venture in the manufacture of the
Products for which such components were consumed.
	 
	 	1.18	 	“Facility” means the segregated, locked, walled, restricted access space, which Venture
uses for the manufacture of a Product at Venture’s existing manufacturing facility located in
Johor Bahru, Malaysia or such other Venture manufacturing site(s) approved by Hypercom in
writing.
	 
	 	1.19	 	“Improvement” means Intellectual Property that is developed by, or on behalf of, a party
while performing its obligations under this Agreement that incorporates, exploits, or cannot
be used without employing all or

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	 	 	 	any part of either party’s Basic IP.
	 
	 	1.20	 	“Intellectual Property” or “IP” means all patents, applications for patents, discoveries,
inventions, rights protecting trade secrets, know-how, and confidential information,
copyrights (including without limitation moral rights), works of authorship, including
computer programs and software, industrial design rights, layout designs, registered
designs, design rights, topographies, mask works, trade marks, service marks, database
rights, trade or business names, rights protecting goodwill and reputation similar or
corresponding proprietary rights and all applications for the same, whether presently
existing or created in the future, and other intellectual property rights recognized in any
jurisdiction whether registered or not, and all rights to sue, recover damages and obtain
relief or other remedies for any past, current or future infringement, misappropriation or
violation of any of the foregoing rights. For any definition relating to Hypercom’s
Intellectual Property, Intellectual Property shall also include Know-how.
	 
	 	1.21	 	“Hypercom Consigned Items” means, collectively, the Hypercom Equipment and Hypercom
Material which Hypercom shall provides to Venture on a consignment basis, as listed in the
applicable Product Schedule or as agreed to by the parties in writing. Any Hypercom Equipment
and Hypercom Material provided to Venture and/or its Affiliates shall be subject to the terms
set out in Section 23.
	 
	 	1.22	 	“Hypercom Equipment” means the tooling, fixtures, appurtenances, test hardware and
software, equipment and any other items provided or to be provided by Hypercom to Venture and
agreed to by the parties in writing.
	 
	 	1.23	 	“Hypercom Factory” means the Hypercom facility located at, Block 3 Area 2, Xinxing
Industrial Zone, Fuhai Road, Xinhe Village, Fuyong Town, Baoan District, Shenzhen, and
People’s Republic of China.
	 
	 	1.24	 	“Hypercom Material” means any Components and other materials used in a Product, or in the
manufacture or testing of a Product, to be provided by Hypercom to Venture as listed in the
applicable Product Schedule.
	 
	 	1.25	 	“Hypercom Property” means collectively, Hypercom Material, Hypercom Equipment, Hypercom
Intellectual Property, Hypercom Consigned Items or other items delivered by Hypercom to
Venture pursuant hereto as well as all Improvements and New Technology owned by Hypercom.
	 
	 	1.26	 	“Hypercom Supplied Items” means Hypercom Equipment and Hypercom Material that Venture
purchases from Hypercom, as listed in an applicable Product Schedule, and shall only be used
for the manufacture of Products hereunder.
	 
	 	1.27	 	“Initial Inventory” means Components purchased prior to Hypercom’s Product transition to
Venture and as set out in each Product Schedule.
	 
	 	1.28	 	“Know-how” means, for any definition relating to Hypercom’s “know-how”, the Manufacturing
Procedures, Product Specifications and any information, including but not limited to,
confidential information, trade secrets, engineering, research, manufacturing and technical
data, designs, drawings, blueprints, specifications, instruction manuals, procedures,
assembly methods, facilities, skills, know-how, prices, catalogues, and lists of ventures
relating to the manufacture, use, testing and sale of a Product, or Hypercom Property, as
disclosed orally, visually, in writing, or otherwise to Venture or Venture’s employees by
Hypercom, and as may be developed or acquired by Hypercom through Hypercom’s efforts and
transmitted to Venture during the Term. Without limiting the generality of the foregoing,
Know-how includes the information that may be attached to or referenced in the applicable
Product Schedule and which may be updated from time to time by Hypercom.
	 
	 	1.29	 	“KPIs” shall mean a key performance indicator determined in accordance with this Agreement,
which establishes a critical performance metric and minimum acceptable performance standard
which Venture is required to achieve in performing this Agreement.
	 
	 	1.30	 	“Long Lead Time Component” means any Component for which the minimum duration necessary for
Venture to procure such Component from the relevant third party vendor, is not less than the
duration identified in the Product Schedule or quarterly Special Inventory declarations.

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	 	1.31	 	“Manufacturing Procedures” means those manufacturing, testing and packaging processes,
procedures and specifications relating to each Product as determined from time to time by
Hypercom and agreed to in writing with Venture, which shall not be unreasonably withheld.
	 
	 	1.32	 	“Minimum Order Inventory” means any Component for which the minimum quantity for such
Component that Venture is required to procure in any single order with the relevant
third-party vendor is greater than the quantity of such Component required to fulfill (i) any
Purchase Order for a Produce which requires such Component or (ii) any Forecast for a Produce
which requires such Component, as the case may be, and shall include Components that are sold
in bulk quantities, multiple-packs, reels or tapes.
	 
	 	1.33	 	“Mix Change” shall mean the substitution of a given quantity of Products that appear in one
forecast with an equal quantity of different Products in a subsequent forecast; provided,
however, that the substitute Products are members of the same Product Family as the
originally forecasted Products.
	 
	 	1.34	 	“MBOH” means material burdened overhead.
	 
	 	1.35	 	“NCNR Inventory” means any Components for which the quantity of such Component that the
Supplier is required to procure in any single order with the relevant third party vendor is
greater than the quantity of such Component required to (i) fulfill any accepted Purchase
Orders or Releases which requires such Component or (ii) any Forecast for a Product which
requires such Component, as the case may be, which are cannot be cancelled and/or cannot be
returned to the relevant third party vendors
	 
	 	1.36	 	“New Process Technology” means New Technology other than New Product Technology which
relates to the manufacture and supply of a Product, including without limitation, any
processes, procedures, methods, tooling, fixtures, appurtenances, test hardware, software or
equipment.
	 
	 	1.37	 	“New Product Technology” means New Technology that relates to a Product, including without
limitation, the design, layout, specifications or component parts or any New Technology that
is solely, uniquely or specifically related to a Product or the manufacture, test or
packaging of a Product.
	 
	 	1.38	 	“New Technology” means Intellectual Property that is developed solely by, or on behalf of,
a party or jointly by the parties while are developed specifically for Hypercom as part of
performing their obligations under this Agreement and which is not an Improvement.
	 
	 	1.39	 	“Non-Disclosure Agreement” or “NDA” means the non-disclosure agreement between the parties
either identified in or attached as Schedule A hereto, and hereby incorporated by reference
into this Agreement.
	 
	 	1.40	 	“Obsolete Material” means all Components, materials, and supplies shall be deemed obsolete
if there have been no purchases for the previous [****] months and for which there is no
forecasted demand for such Components, materials and supplies.
	 
	 	1.41	 	“PCBA” means Printed Circuit Board Assembly.
	 
	 	1.42	 	“Prices” means the prices to be charged by Venture to Hypercom for each Product as set
forth in Section 8 and the applicable Pricing Schedules, as may be revised from time-to-time
in accordance with this Agreement, and as may be otherwise agreed to by the parties in
writing from time to time. Pricing may be affected by delivery terms, Product and process
changes, order quantity and otherwise as mutually agreed.
	 
	 	1.43	 	“Product” means the item listed in a completed Product Schedule executed by the parties.
	 
	 	1.44	 	“Product Family” shall mean a related set of all Products either PCBA or whole Products
that incorporate substantially the same Components and or subassemblies.
	 
	 	1.45	 	“Product Lead Time” means the period of time, as may be specified in the applicable Product
Schedule, between the date a Purchase Order or Release is received by Venture and the date
Venture shall have the

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	 	 	 	Products at the Delivery Location.
	 
	 	1.46	 	“Product Schedule” has the meaning assigned in Section 2.1, and includes any amendment to a
Product Schedule made by mutual written agreement of the parties.
	 
	 	1.47	 	“Product Specifications” means those technical and functional requirements, specifications
and other requirements pertaining to each Product determined and provided in writing by
Hypercom and comprising, in part, any portion of the Know-how.
	 
	 	1.48	 	“Project Plan” shall mean the plan mutually developed and agreed to by Hypercom and Venture
for the purpose of preparing product and process for manufacture by Venture. The Project
Plan shall include a statement of work and milestone schedule, and any other information
required to guide the development activity, such as resource assignments and
responsibilities. Each Project Plan shall be developed on an as needed basis.
	 
	 	1.49	 	“Purchase Order” means, in the case of Venture, where applicable, the purchase order
submitted by Venture to Hypercom, and accepted by Hypercom to purchase Hypercom Supplied
Items from Hypercom, and, in the case of Hypercom, a written purchase order submitted by
Hypercom to Venture and accepted by Venture in connection with the supply of a specified
quantity of Products to Hypercom in accordance with this Agreement. Purchase Orders shall
describe Products to which the Purchase Order relates, including Hypercom’s part number for
the same, their quantity of the Product to which the Purchase Order relates, the Price as set
out in the Product Schedule, and the Delivery Dates on which the Products are to be
delivered.
	 
	 	1.50	 	“QBR” means Quarterly Business Review.
	 
	 	1.51	 	“Quality Management Plan” or “QMP” shall mean all documentation, processes and procedures
necessary to manufacture, inspect and accept Products, deliver and service the Products as
mutually agreed to by the parties. The Quality Management Plan will include: (a) incoming
quality assurance inspection and engineering change order control of material, (b)
manufacturing and process procedures, and (c) manufacturing process control and quality
control systems.
	 
	 	1.52	 	“Quality Management Policy” means Hypercom’s quality management policy attached hereto as
Schedule F, as may be revised by the parties from time to time.
	 
	 	1.53	 	“Release” means a Hypercom release order requesting and authorizing Venture to deliver a
specified quantity of Products covered by a Blanket Purchase Order, or a Purchase Order, on a
specified Delivery Date to a Hypercom specified Delivery Location.
	 
	 	1.54	 	“RMA” means a Return Materials Authorization number.
	 
	 	1.55	 	“SKU” shall mean a specific Product that is assigned a unique stock keeping unit number by
Hypercom.
	 
	 	1.56	 	“Taxes” means all property, municipal, gross receipts, gross revenues taxes, sales, use,
value added, goods and services, excise, harmonized and other non-recoverable taxes and other
taxes and similar charges required to be paid to any domestic or foreign jurisdiction and all
interest and penalties thereon.
	 
	 	1.57	 	“Term” means the initial term and all renewals thereof pursuant to Section 2.4.
	 
	 	1.58	 	“$”, “USD” or “Dollars” means lawful money of the United States.

2. SCOPE OF AGREEMENT

2.1 Product Schedule. In the event Venture wishes to supply and Hypercom wishes to purchase
a Product pursuant to the terms of this Agreement, the parties shall complete and sign a document
substantially in the form shown as Schedule B (“Product Schedule”) for that Product. Upon the
effective date of such Product Schedule, the supply and purchase of such Product shall be subject
to the terms of this Agreement until removal of such Product

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from this Agreement in accordance with its terms or upon the expiry or earlier termination of this
Agreement.

	2.2	 	Manufacture and Sale of Products. During the term of this Agreement, Venture shall:

(a) accept Purchase Orders for Products in accordance with Section 5. Venture will not
refuse to accept Purchase Orders from Hypercom during the term of this Agreement as long as
Hypercom is not in material breach of this Agreement as of the date such Purchase Order is
issued and the Purchase Orders conform with the terms and conditions of this Agreement. For
the avoidance of doubt, the material breach condition in this subsection 2.2(a) does not
apply to breaches which have been waived or remedied;

(b) manufacture such Products at the Facility; and

(c) deliver such Products to Hypercom in accordance with Section 6.

2.3 No Minimum Purchase Requirement. Hypercom does not agree to purchase any minimum
quantities or units of Products except as may be defined in the Product Schedule. Venture agrees
and acknowledges that Hypercom does not make any representations or warranties as to the future
success of the Products, or as to the volume of any purchases that may be made under this
Agreement.

2.4 Term. Unless earlier terminated in accordance with its terms, this Agreement: (a) is
effective from the Effective Date and continues for an initial term of [****] years; and (b) will
be renewed for additional consecutive one year periods (each a “Renewal Term”) unless either party
provided written notification of termination within 60 Calendar Days prior the end of such Term or
Renewal term.

	3.	 	PRODUCTS AND PRODUCTION
	 
	3.1	 	Products.
	 
	3.1.1	 	Existing Products. The parties agree and acknowledge that the Existing Products are
deemed to be Products under this Agreement as of the Effective Date. Venture acknowledges
that Hypercom has previously delivered to Venture the documents which include the Product
Specifications, Quality Management Policy, and Bills of Materials for current Hypercom
products (the “Existing Products”). Hypercom represents and warrants to Venture that the
Product Specifications, Quality Management Policy, and BOMs so provided to Venture are
accurate and correct for the purpose of manufacturing the Existing Products as contemplated by
this Agreement. The list of Existing Products is attached as an appendix to the Product
Schedule.
	 
	3.1.2	 	New Products. From time to time, the parties may add other products to be
manufactured and supplied by Venture under this Agreement (each a “New Product”) by agreeing
upon in writing, and executing and attaching a Product Addendum to the Product Schedule for
each such New Product. Each Product Addendum may set forth the Project Plan, the Product
Introduction Plan, the Product Ramp Plan, the Development Schedule, the Product Milestone
Schedule, the Product Requirements Document, the Process Management Plan, the Quality
Management Plan, the Product Specifications, prices for the New Product, and any other terms
and conditions related to the New Product that the parties may deem appropriate and mutually
agree in writing.
	 
	3.1.3	 	Product Discontinuation and EOL Process. Hypercom may discontinue any Product upon
[****] Calendar Days’ prior written notice to Venture, whereupon the parties shall cooperate
to implement an end-of-life process (“EOL Process”) for the discontinued Product. The details
of the EOL Process shall be agreed upon by the parties, and, unless otherwise agreed, shall
include a replacement product transition plan, a transition plan for Hypercom’s customers,
warranty reserve plan, and last-time-buy and last-time-build plans. Venture may not
discontinue the manufacture of any Product or terminate any associated manufacturing process
without the prior written consent of Hypercom. Any components, subassemblies and raw
materials that were previously purchased by Venture pursuant to Hypercom’s authorization but

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	 	 	were rendered obsolete as a result of Hypercom’s discontinuation will be managed in
accordance with Section 5.10.
	 
	3.1.4	 	Re-introduction of Discontinued Products. In the event a Product is discontinued
under Section 3.1.3 and Hypercom subsequently wishes to re-introduce or re-manufacture a
Product, the parties will then discuss in good faith the terms upon which Venture shall
recommence the manufacture of such Product (which shall be substantially similar to the terms
governing the manufacture and Supply of Product prior to its discontinuation).
	 
	3.2	 	Production.
	 
	3.2.1	 	Venture shall manufacture, procure Components for, test, package, and prepare for shipment
all Products that are the subject of a Purchase Order in strict conformity with the applicable
Process Management Plan, Quality Management Plans, and any other applicable Product Addendum
that controls the procurement, manufacture, test, packaging, and shipment preparation of any
Product. The location for such manufacturing and other activities shall be at the Facility
or, for certain Existing Products where agreed between the parties, at Hypercom Factory.
Venture shall also (a) provide all services that are mutually agreed upon by the parties;
(b) provide Hypercom with a [****] rolling shipment forecast on a daily basis
and a recovery plan if there is any production backlog; (c) inspect all Products prior to
shipment to Hypercom to determine whether such Products meet the agreed upon process controls,
test yields, end-of-line audits and out-of-box audits; and (d) provide Hypercom with timely
access to process and quality data.
	 
	3.2.2	 	Source Verification. Hypercom or its authorized agent may perform reasonable source
verifications and quality assurance audits at the Facility at a time agreed upon by both
parties. Each party shall bear their respective costs incurred in connection with any such
audit.
	 
	3.2.3	 	List of Property. Upon Hypercom’s written request, Venture shall provide Hypercom
with a complete and detailed list of all tooling, fixtures, appurtenances, test hardware and
software, equipment and other material obtained by Venture (except for Hypercom Tooling or
Supplier Tooling) related to this Agreement and that are needed for Venture to fulfill its
obligations to Hypercom under this Agreement (the “Venture Equipment”). [****]
	 
	3.2.4	 	Approved Vendors. Where Hypercom has specified that third party material is to be
procured from a particular vendor (“Third Party Material”), whether in the Product
Specifications or otherwise, Venture shall only procure such Third Party Material from that
specific vendor. Where Venture wishes to procure Third Party Material from a vendor other than
that vendor specified by Hypercom, such change shall be processed as an Engineering Change
pursuant to Section 12. Venture, at Hypercom’s prior written request, will source for, and
provide to, Hypercom any third party materials or products (including without limitation Third
Party Materials) for Hypercom’s use in research and development activities. Such third party
materials or products will be provided to Hypercom at Venture’s purchase price without markup.

4. VENTURE’S GENERAL OBLIGATIONS

4.1 Manufacture and Supply of Products. During the Term Venture shall manufacture (which
includes, without limitation, testing and packaging) the Products for Hypercom in accordance with
the applicable Manufacturing Procedures, Product Specifications and the terms of this Agreement and
supply exclusively to Hypercom Products in quantities and on Delivery Dates specified in Purchase
Orders or Releases for such Products placed by Hypercom and accepted by Venture, subject to the
terms of this Agreement. [****]

4.2 Facility. Except as otherwise mutually agreed upon in writing by the parties, Venture
shall, at its cost, design, equip and maintain the Facility such that it meets or exceeds the
requirements of this agreement and shall comply with all the requirements agreed upon by the
parties in writing regarding appropriate restricted access codes, signage and security measures at
the Facility to protect the Products and Hypercom Property. Venture may not change its Facility or
place of manufacture of a Product without receiving Hypercom’s prior written consent, not to be
unreasonably withheld or delayed.

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4.3 Business Continuity and Disaster Recovery Plan. Venture shall maintain a Business
Continuity and Disaster Recovery Plan, as attached hereto as Schedule I. The parties agree to
review the Business Continuity and Disaster Recovery Plan as part of the QBR process.

4.4 Qualification Process. Venture, and its suppliers, shall participate in and comply with
Hypercom’s qualification process, if any, to ensure Venture and the Products can meet the
Manufacturing Procedures and the Product Specifications. The parties shall be responsible for the
costs for such qualification as mutually agreed upon in writing.

4.5 Training. Venture shall at reasonable cost, send the mutually agreed number of
suitably qualified Venture personnel to the Hypercom Factory, or any other facility designated by
Hypercom, to attend training sessions conducted by Hypercom or a third party regarding the
manufacturing of the Products in accordance with the Manufacturing Procedures. Prior to or upon
their arrival, Venture shall deliver to Hypercom executed Employee Acknowledgements, in the form
consistent with the requirements of Schedule A, signed by each employee to be trained by Hypercom.

4.6 NPI and Design Services. Venture shall provide New Product Introduction (“NPI”) and
design services to Hypercom as mutually agreed upon from time to time. Any costs associated with
NPI and Design Services shall be separately itemized, priced and reimbursed, as mutually agreed.

	5.	 	FORECASTS AND ORDERS
	 
	5.1	 	Forecast.
	 
	5.1.1	 	Forecasting. On a [****] basis Hypercom shall deliver to Venture a rolling forecast
(a “Forecast”) of Hypercom estimated needs for Products during the period that begins in the
following [****] and continues for [****] immediately thereafter (the “Forecasted Period”).
The estimated Product requirements during the [****] of the Forecasted Period shall be
detailed on a [****] basis. The estimated Product requirements for the remainder of the
Forecasted Period shall be detailed on at least a [****] basis.
	 
	5.1.2	 	Effect of Forecast. All commitments for purchases of Products hereunder are only
upon Hypercom’s issuance of a Purchase Order pursuant to Section 5.3. [****]
	 
	5.2	 	Committed Period and Flexibility.
	 
	5.2.1	 	Committed Period. The [****] of the Forecasted Period shall be referred to as the
“Committed Period” Hypercom shall issue binding Purchase Orders for Products for the [****] of
the Committed Period. Except as set forth below in Section 5.2.2, Hypercom may not change the
volumes or mixes of forecasted Products during the [****] of the Committed Period in any
subsequent Forecast.
	 
	5.2.2	 	Flexibility. The Parties agree that save as permitted in this Section 5.2.2,
Hypercom shall not vary the volumes or mixes of any forecasted Products:

(i) For each of the [****] of the Committed Period, Hypercom may increase or decrease the
[****] forecasted volumes for each Product for the same [****] by not more than 30% without
charge or penalty.

(ii) Venture shall also permit Hypercom to make mix changes within a Product family
forecasted within the Committed Period for [****] up to [****]% of the rolling [****]
aggregated forecasted quantity, contingent upon unique component availability, without
penalty.

(iii) In addition, the aggregate percentage volume increase or decrease for any specific
week within the Committed Period shall not exceed [****]% and over any rolling six-week
period shall not exceed [****]% contingent upon Section 5.6.

[****] Confidential Treatment Requested

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All other changes to the forecasted volumes within the Committed
Period that are beyond those previously described in this Section
5.2.2 shall always be subject to Venture’s consent, which shall not be
unreasonably withheld or delayed. The parties agree that in the event
Venture agrees to any changes outside the scope of this Section 5.2.2,
any reasonable expediting cost specific to accommodating a change
outside the flexibility requirements shall be borne by Hypercom.

	5.3	 	Purchase Orders.
	 
	5.3.1	 	[****] Purchase Orders. Hypercom shall issue binding Purchase Orders for the [****]
of the Committed Period. Venture shall, within [****] of receipt of the Purchase Order,
acknowledge and honor any such Purchase Order to the extent that the Purchase Order reflects
the mixes and volumes in the current Forecast, subject to the Section 5.2.1.
	 
	5.3.2	 	Advance Purchase Orders. From time to time, Hypercom may also issue Purchase Orders
that require delivery of Product quantities after the first three weeks of the current
Forecasted Period. Venture shall use commercially reasonable efforts to honor these Purchase
Orders. If Venture desires that Hypercom bear any expediting cost for accommodating such
Purchase Order, Venture is to seek Hypercom’s prior approval for such expediting costs. Where
Hypercom approves such costs, Hypercom shall pay Venture the same. If Hypercom does not
approve such costs, Venture shall not be obligated to accommodate such Purchase Order.
	 
	5.3.3	 	Rescheduling of Purchase Orders. Hypercom may reschedule up to [****]% of the
total aggregate Purchase Order volume for up to [****] after the original Delivery Date
without charge or penalty.

5.4 Cancellation. Subject to Hypercom Special Inventory liabilities as defined in Section
5.9 and upon written notice to Venture and for convenience, Hypercom may cancel the delivery of
Products:

	 	(a)	 	With notice greater than [****] prior to scheduled delivery, without any cost,
charge or liability to Hypercom;
	 
	 	(b)	 	With notice less than [****] prior to scheduled delivery, subject to payment of
Venture’s actual costs incurred, excluding profit, prior to receipt of the cancellation
notice, and solely in relation to the applicable Purchase Order or Release for finished
Products, or work in process or raw materials, provided that:

	 	(i)	 	[****];
	 
	 	(ii)	 	[****];

	 	(iii)	 	Venture shall immediately cease all work on the Purchase Order or Release
subject to the cancellation notice, and shall use commercially reasonable efforts to
minimize all costs associated with cancellation, including (without limitation)
re-using parts, material and work-in-process in other Venture products, reworking
Products in a manner that is acceptable to Hypercom, to make them saleable to other
Venture customers, and/or returning material to Venture’s suppliers. Venture shall
provide Hypercom with supporting evidence of all such reasonable costs actually
incurred and claimed by Venture under this Section 5.4. Payment of any costs that are
not substantiated by adequate documentation may be denied by Hypercom acting in its
sole discretion;
	 
	 	(iv)	 	Upon Hypercom’s request Venture shall promptly deliver to Hypercom the
Products, or any part thereof, in any state of manufacturing whatsoever, that was the
subject of the cancelled Purchase Order or Release, together with all such work in
progress and raw materials, or part thereof, [****]; and
	 
	 	(v)	 	Any cancellation charges hereunder represent Hypercom’s sole and exclusive
obligation and Venture’s sole and exclusive remedy in the event of any cancellation of
a Purchase Order or Release by Hypercom pursuant to this Section 5.4.

[****] Confidential Treatment Requested

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5.5 Allocation. Venture shall fulfill all conforming Purchase Orders according to the
terms of this Agreement. In the event Venture’s material suppliers place certain Components on
allocation, Venture agrees to notify Hypercom immediately and use commercially reasonable efforts
to assure proper allocations for Hypercom production are achieved. [****] In the event of a
component shortage, available material will be allocated to all customers on a proportional basis
to open purchase order commitments at the time the allocation condition was identified.
Notwithstanding the foregoing, Venture will use best efforts to ensure such allocation will be
based on the Forecast for the Committed Period. Venture shall communicate any constraints or
changes to commitment at least daily to Hypercom. Information concerning potential missed
deliveries within a [****] window must be immediately communicated through Supply Alert messages as
needed to Hypercom global planning and the Hypercom Program Manager both telephonically and in
writing. Longer-term constraints must be promptly communicated to Hypercom global planning and the
Hypercom Program Manager.

5.6 Installed Equipment Capacity. The installed equipment capacity at the Facility will
provide for [****]% upside to the quarterly Forecast. Venture capacity will be tabulated [****]
together with its associated lead-time in bringing up additional capacity. All Forecasts for
Products shall adhere to the [****]% limitation of installed capacity and where there is a need of
capacity exceeding the maximum quantity, Venture will consult with Hypercom during QBRs or more
frequently as needed with changes to manufacturing capacity plans including equipment and labor
needed to meet current and future forecasted demand including [****]% upside flexibility. In the
event unique equipment is required to meet capacity requirements, Venture shall request additional
Hypercom equipment to be provided or reimbursement through NRE which shall not be unreasonably
withheld by Hypercom. Upside flexibility will also be provided through the use of overtime, split
and overlapping shifts to cover peak demands. Hypercom will be charged for overtime labor only in
cases where Purchase Orders exceed flexibility parameters in Section 5.2.2.

5.7 Safety Stock Program. Unless otherwise agreed by the parties, each Product Schedule
shall provide any applicable safety stock obligations of Venture to increases in Product demand
from Hypercom.

	5.8	 	Intentionally Blank.
	 
	5.9	 	Special Inventory.
	 
	5.9.1	 	Subject to Hypercom’s rights under Section 5.6 and Venture’s duties hereunder, Hypercom
authorizes Venture to purchase certain components, materials and supplies (“Components”) for
the manufacturing of Products. Long Lead Time Components, Economic Order Inventory, Minimum
Order Inventory, Initial Inventory, and NCNR Inventory are collectively designated herein as
“Special Inventory”. All Special Inventory Components shall be identified and specified in
writing initially as part of the Product Schedule and subsequently in updates together with
quarterly Pricing.
	 
	5.9.2	 	Special Inventory on Venture’s premises for more than [****] is subject to a [****]% per
month inventory carrying cost. Special Inventory on Venture’s premises more than [****] will
be purchased, or subject to the payment by Hypercom to Venture of carrying charges equal to
[****]% per month, at Hypercom’s option. Written requests and authorizations to purchase
Economic Order Inventory and Minimum Order Inventory shall be provided in writing by Hypercom
to Venture. Venture will invoice Hypercom on a [****] basis for any amounts due, and Hypercom
shall pay such amounts within [****] Calendar Days after receipt of invoice.  Notwithstanding
any other provision in this Section 5.9, Hypercom shall not be responsible for unauthorized
procurement of any Special Inventory.
	 
	5.10	 	Excess and Obsolete Material.
	 
	5.10.1	 	Obsolete Material. Subject to mutual agreement, Hypercom will issue a Purchase
Order for all Obsolete Material prior to the end of the [****] the material is declared
obsolete. The amount of the Purchase Order shall include the [****].
	 
	5.10.2	 	Excess Inventory. Hypercom will issue a Purchase Order for all Excess Inventory to
be determined using Venture’s best estimate of future demand at the time, based upon
information available and utilizing the

[****] Confidential Treatment Requested

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	 	 	following analysis and action, for which there are no Rolling Forecasts, Purchase Orders or
Releases for [****]:

(a) Venture will use Hypercom’s Purchase Orders, Releases, and Rolling Forecasts to
determine the basis for defining material usage;

(b) Venture will provide a [****] report highlighting all Excess Inventory; and

(c) A Purchase Order, payable per the terms of this Agreement, will be issued to Hypercom in
the amount of any materials designated as Excess Inventory for [****], which invoice shall
be payable per the terms of this Agreement.

	5.10.3	 	Mitigation. Venture shall immediately use its best efforts to mitigate by (1)
canceling any outstanding orders for Excess and Obsolete Components (to the extent it is
allowed to do so by the supplier without the payment of substantial penalties); (2)
re-allocating, if possible, all Excess and Obsolete Components for use by other Venture
customers in other manufacturing facilities, (3) returning Excess and Obsolete Components to
the supplier (to the extent it is allowed to do so by the supplier without the payment of
substantial penalties), or (4) selling Excess and Obsolete Components to a third party. If,
after taking all of the foregoing mitigation measures, Venture is unable to recover its
materials cost for the Excess and Obsolete Components (which shall for the avoidance of doubt
include any penalties payable by Venture to the suppliers), Hypercom shall reimburse Venture
such [****].
	 
	5.10.4	 	Hold.  Without prejudice to Section 5.10.2 and 5.10.3, Hypercom may at any time
direct Venture to hold inventory in which case the terms of 5.9 shall apply.
	 
	6.	 	PACKAGING, SHIPPING, DELIVERY, RISK AND TITLE, DISTRIBUTION

6.1 Packaging. Venture shall [****], package, bar code, label, and handle all Products in
accordance with the applicable Product Specifications and Manufacturing Procedures, or as otherwise
directed by Hypercom in writing, and so as to protect them from damage, ensure reasonable
protection from loss or damage during delivery and while in storage. Venture shall ensure that each
shipment of Product is accompanied by a packing slip that indicates, at minimum, Product
description, Venture part numbers, Hypercom part numbers and the applicable Purchase Order or
Blanket Purchase Order number.

6.2 Delivery and Shipping Requirements. Venture shall deliver the Products to Hypercom at
the Delivery Location on the Delivery Date. Orders may be delivered [****] Calendar Days late and
up to [****] Calendar Days early and the delivery shall be considered to be on time. Hypercom may
change the Delivery Location at any time by giving prior written notice to Venture any time before
the affected Products are shipped. Venture shall not ship partial shipments of Products to
Hypercom unless Hypercom agrees in writing.

6.3 Delivery Date. Delivery Dates for Products shall be as specified on each Purchase
Order or Release, unless otherwise mutually agreed in writing. Venture shall accept all Hypercom
requested Delivery Dates for Products provided that such Purchase Orders or Releases are for
quantities specified in Hypercom’s current Rolling Forecast and issued upon or in advance of such
Delivery Dates taking into account the applicable Product Lead Time. Venture shall use its
commercially reasonable efforts to accept and comply with all other Hypercom requested Delivery
Dates.

6.4 Title and Risk. Unless otherwise specified in a Product Schedule: (a) Prices are Ex
works factory (Incoterms 2000; (b) Hypercom will be the importer of record in cases where Product
is being shipped directly to Hypercom; and (c) in the case where Product is being shipped to a
third party as requested by Hypercom, Hypercom will designate the importer of record. Unless
otherwise agreed in writing, title to the Products shall pass from Venture to Hypercom when
Products are delivered at the Venture Facility. Venture shall record Hypercom as the importer of
record for all Products delivered to Hypercom pursuant to this Agreement, provided that all export
related permits, licenses, approvals and/or other legal or regulatory requirements shall be the
responsibility of Venture. Hypercom agrees to pay all Taxes levied or based on the Products, except
for any tax levied or based on the applicable income or capital of Venture, its agents or
employees. Any Taxes assessed to Hypercom will be

[****] Confidential Treatment Requested

11

 

separately stated on the invoice. Venture will not assess a Tax for which Hypercom has furnished to
Venture a copy of a tax exemption certificate, certificate of authority, direct pay permit, or any
equivalent document acceptable to the relevant taxing authority.

6.5 Late Delivery. Venture shall immediately notify Hypercom in writing upon becoming
aware that any part of a shipment of Products will not be, or has not been, delivered by the
Delivery Date and shall provide reasons for the delay, with a revised delivery date. Venture’s
revised Delivery Date must take into account the use of all means available to expedite production
and delivery of the delayed Products including without limitation expediting the procurement of
materials, using expedited transportation means and labor overtime (“Accelerated Measures”). In the
event of such delay, Hypercom may, in its sole discretion, agree to a revised Delivery Date or
cancel that part of the Purchase Order or Release for the delayed Products without any cost,
liability or charge, notwithstanding any other provision hereof. Where Hypercom agrees to the new
Delivery Date, and such delay is the fault of Venture, Venture shall, [****] employ Accelerated
Measures to ensure the delayed Products are delivered on or before the revised Delivery Date. For
purposes of this Section 6.5, Rejected Products (as defined in Section 7.1) shall be deemed not to
have been delivered by the Delivery Date.

	6.6	 	Delivery Default.
	 
	6.6.1	 	Where the Product has not been delivered by the accepted Delivery Date as a consequence of
Ventures errors or omissions, [****]
	 
	6.6.2	 	If during any quarter more than [****]% of Products are delivered late, a default of a
material obligation under this Agreement for purposes of Section 22 hereunder shall be deemed
to have occurred. For purposes of this subsection, late delivery is measured by reference to
the accepted Delivery Date specified in the applicable Purchase Order and by reference to the
provisions of Section 5.  Additionally, for purposes of calculating the percentage of Product
delivered late in a quarter, all Product delivered late in a given quarter shall be divided by
all Product delivered in a given quarter. 
	 
	6.6.3	 	Notwithstanding the foregoing, the provisions of this Section 6.6 shall not apply to the
extent that any delay is caused by a Force Majeure Event or is caused by Hypercom’s breach of
its obligations under this Agreement.

6.7 Drop Shipments. From time to time Hypercom may require that Venture ship Products to
Delivery Locations other than those otherwise designated.

	6.7.1	 	Confidential Information. The information provided by Hypercom to Venture in
relation to drop shipping is Confidential Information. With the exception of the disclosure of
the drop ship information provided by Hypercom for inclusion with each drop ship order to its
designated third party recipient, Venture may not disclose any information related to the
Hypercom drop ship program to any other party without the prior written consent of Hypercom.
	 
	6.7.2	 	Drop Ship Process. Venture shall comply with the administrative and technical
processes set out by Hypercom’s drop ship program documentation, as modified from time to time
by Hypercom with reasonable notice to Venture, including any and all confidentiality
requirements of Hypercom or third parties. Such documentation shall be deemed to be
incorporated by reference into this Agreement.
	 
	6.7.3	 	Shipping Terms. Venture agrees that the shipping terms for drop shipped Products may
vary according to the designated Delivery Location and shall be agreed upon in each Purchase
Order. In all cases, title to the Products shall pass from Venture when the Products are
delivered to the Delivery Location, and Prices are exclusive of Taxes.
	 
	6.7.4	 	Communication with Hypercom Customers. Venture shall include all documentation
designated by Hypercom for inclusion with the relevant drop ship order, and shall not alter
such documentation without the prior written consent of Hypercom. Venture acknowledges that
most recipients of drop shipped Products are Hypercom customers. [****]

[****] Confidential Treatment Requested

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	6.7.5	 	Drop Ship Program Costs. Any costs or expenses related to Venture’s access,
implementation, training or other expenses relating to the Hypercom drop ship program shall be
as mutually agreed.
	 
	7.	 	INSPECTION AND REJECTION OF PRODUCTS

7.1 Inspection and Rejection. Hypercom (or its customer in the case of direct or drop
shipment) shall have a period of [****] following receipt of a shipment of Products to inspect the
Products using an industry-accepted sampling plan (“AQL”) before accepting the shipment. Hypercom
reserves the right to perform this inspection at Venture’s location upon notice to Venture prior to
shipment. Subject to the terms of this Agreement, Hypercom may reject Products or Product shipments
[****] where the AQL inspection reveals the Products are damaged, defective in material or
workmanship or do not meet Hypercom specifications or Quality standards (“Rejected Products”).
Rejected Products shall be returned to Venture in accordance with Section 7.2. [****] If Venture is
not responsible, Venture and Hypercom shall mutually agree on any further actions and related costs
and disposition relative to Rejected Products.

7.2 Product Returns. Within [****] after receipt of Hypercom’s (or its customer in the
case of direct or drop shipment) notice of intention to return Product pursuant to this Agreement,
Venture shall issue an RMA. If no RMA is issued within [****], Hypercom may return Product without
further notice to Venture and without a RMA. Where Hypercom determines that Product is
non-compliant with the warranties herein, Venture shall provide remedy in accordance with Section
15.2. In all other circumstances, Venture and Hypercom will mutually agree upon the allocation of
costs associated with returned Products. Hypercom is obligated to purchase within [****] of repair
all Products returned under Warranty which can be returned to a serviceable condition.

	8.	 	PRICES, INVOICING AND PAYMENT TERMS 
	 
	8.1	 	Basic Pricing Formula. 

(a) Pricing for the Top Level Assemblies shall be based on a mutually agreed pricing
template, a form of which is attached hereto as Schedule C. The pricing of the Top Level
Assemblies shall be the sum of the following pricing elements:

[****]

The cost of these elements shall be agreed on a quarterly basis and shall be fixed in the
Pricing Confirmation Review.

(b) The calculation of the prices shall be based on mutually agreed unit prices for BOM
Components and other mutually agreed price determining factors, which may include:

[****]

Upon request, Venture shall provide details supporting the calculation of the cost elements
mentioned above.

8.2 No Taxes.  The parties agree that no taxes will be used or considered in calculating
the Prices.

8.3 Cost Reduction. Venture shall implement and sustain an ongoing cost reduction program
targeting BOM cost and operational process costs. Venture shall use commercially reasonable best
efforts to achieve purchase cost reductions [****] The operational cost improvement program shall
include [****] The improvement shall result in increased direct labor productivity, reduced
variable overhead cost, reduced scrap levels and reduced cycle times. Both parties shall agree
during the last Price Review of the year on baseline BOM and operational cost saving targets for
the following year. Gain sharing for cost reductions achieved shall be done according to the
following principles:

[****]

[****] Confidential Treatment Requested

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The parties will meet on a regular basis and discuss current price reduction targets achievement as
described in Section 8.5.

8.4 Targets. Unless otherwise described in Section 8.5, the following targets shall apply
for the term of this agreement, applicable after the production has been fully transitioned to
Venture

[****]

Venture acknowledges that the [****]% (BOM) and the [****]% (operational cost) minimum [****] price
reductions outlined above may be insufficient for Hypercom to remain competitive. [****]

	8.5	 	Price Reviews.
	 
	8.5.1	 	During [****] of each Pricing Quarter, the parties shall discuss and negotiate reductions to
price based on agreed price reduction targets and current market conditions (the “Price
Review”). [****]
	 
	8.5.2	 	At each such Price Review, Venture shall inform Hypercom of the efforts made during the
previous Pricing Quarter to meet the cost reduction targets set forth in Section 8.3, provide
to Hypercom information documenting its past efforts, and shall discuss its plans to achieve
future cost reductions. [****] Hypercom shall have the right to audit supporting documentation
for BOM pricing pursuant to Section 8.6.
	 
	8.5.3	 	In the Price Review the parties shall also set cost reduction targets for each of the next
[****] based on forecasted volumes including product lifecycle and other factors
	 
	8.5.4	 	During [****] of each Pricing Quarter during the Term, the parties shall discuss and confirm
the conclusions of the prior Price Review and finalize pricing for the next Pricing Quarter
(the “Pricing Confirmation Review”).  

8.6 Audit Rights.  Hypercom shall have the right, during normal business hours and upon
prior appointment made with Venture (which will not be unreasonably withheld or delayed) to (either
directly or through an authorized representative) inspect Venture’s records as they relate to the
manufacture and sale of Product to verify the costs used in pricing calculations, and Venture’s
compliance with all other terms and conditions of this Agreement.  Such audit shall be conducted no
more frequently than on a quarterly basis (except in instances of a material breach of this
Agreement).  Hypercom shall bear the costs of any such audit unless an audit reveals a discrepancy
in excess of [****]% of the total costs used to calculate pricing, or the material breach of this
Agreement by Venture, in such event Venture shall reimburse Hypercom, upon request, for all
reasonable expenses incurred for such review and pay all amounts for which Hypercom has been
overcharged by Venture, or in the case where Hypercom was undercharged, Hypercom shall pay Venture
the amount undercharged upon demand. Venture reserves the right to withhold information as
necessary which is subject to a third-party non-disclosure or confidentiality agreement.

8.7 Invoicing and Payment.  Venture may only issue an invoice to Hypercom upon or after
delivery of the particular Products to the Delivery Location.  All invoices shall reference the
associated Purchase Order or Blanket Purchase Order number, as applicable. Payment is net [****]
Calendar Days following the date of a valid undisputed invoice from Venture, subject to Hypercom’s
legal right of set off. Notwithstanding any amount shown on Venture’s invoice, Hypercom has no
obligation to pay for any Rejected Products or Products otherwise returned and not yet paid for by
Hypercom in accordance with this Agreement.  Hypercom shall make payments by means of electronic
transfer and, upon reasonable notice from Hypercom to Venture, Venture shall enter into an
electronic data interchange arrangement or agreement with Hypercom reasonably satisfactory to
Hypercom.

	9.	 	RELATIONSHIP MANAGEMENT

9.1 Program Managers. Each party shall appoint a program manager (“Program Manager”) who
is primarily responsible for coordinating and overseeing each such party’s activities under this
Agreement. Each Program Manager is the primary commercial and technical liaison with the other
party for purposes of administering this Agreement. The Program Manager shall not have the
authority to agree to amendments of this Agreement or any of its Schedules, but, as between the
parties, shall have the authority to agree to Product Addenda and, except as

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otherwise provided in this Agreement, shall have the authority to give any approvals specified in
this Agreement. Either party may change its Program Manager upon [****] prior written notice to
the other party. Upon the Effective Date, each party will designate its respective Program
Managers, who will in turn meet to determine the processes, protocols, and procedures according to
which they will carry out their liaison duties hereunder.

9.2 Resident Employees. Hypercom shall have the right to have a maximum of five employees
resident on a part-time or full-time basis at the Facility to serve as day-to-day technical and
business liaisons with Venture (the “Resident Employees”). [****] Hypercom shall bear the costs of
all the Resident Employees.

9.3 QBR. In the [****] or as directed by Hypercom, the Program Managers and other
responsible representatives of each party shall meet at a mutually-agreed location (or by
teleconference) for a QBR. Unless otherwise mutually-agreed, the location shall alternate between
Hypercom and Venture locations. At least [****], Hypercom may require the QBR to be held at its
corporate headquarters in the United States. Each party will bear its own costs of attending the
QBR. At each QBR, the parties shall (i) review the progress and activities of the parties under
this Agreement during the previous quarter, including Venture’s performance with respect to the
applicable KPIs and Venture’s performance with regard to technology, quality, responsiveness,
delivery and costs (collectively “TQRDC”); (ii) discuss and resolve any issues or problems in the
parties’ relationship that may have emerged during the previous quarter;; and (iii) discuss any
other matters related to the parties’ relationship as the Program Managers may deem appropriate.
The parties shall also set cost reduction targets for each of the [****] based on forecasted
volumes and other factors affecting pricing. If, following a QBR meeting, despite good faith
negotiation between the parties, Venture has failed to comply with previously agreed targets with
respect to TQRDC, then Hypercom may treat such failure as a breach of this Agreement and may
exercise its rights under Section 22.1.

9.4 KPIs. The KPIs shall constitute binding metrics for the assessment of Venture’s
performance under this Agreement. Each party shall promptly notify the other party as soon as it
becomes aware that any KPI developed pursuant to this Agreement is not being met. Within [****]
that Venture becomes aware of such failure, Venture shall deliver to Hypercom a Corrective Action
Plan (“CAP”) detailing the process and timing by which Venture will correct any failure to meet an
applicable KPI. If Hypercom is not reasonably satisfied with the corrective action proposed in the
CAP, or if Venture fails to provide, or comply with, a CAP within the time required, then Hypercom
may treat such failure as a breach of this Agreement and may exercise its rights under Section
22.1.

9.6 Service Level Agreement. Venture agrees abide by and comply with the Service Level
Agreement attached hereto as Schedule E. The Service Level Agreement provides for the provision of
services in the following areas: New Product Introduction; Product Engineering; Manufacturing
Process Development and Engineering; Quality Systems; Sourcing and Commodity Management;
Documentation and Configuration Control and Retail Customer Support. This Service Level Agreement
sets out the services to be performed by Venture, on behalf of Hypercom, and sets forth the
performance measures for the evaluation of service quality.

9.7 IT Systems Support. Venture agrees to facilitate the communication and system logic
links of specific IT functions and databases with Hypercom systems in accordance with Schedule G.
To the extent that any system integration activities are required to enable the foregoing, the
parties will cooperate to perform such integration activities in accordance with a mutually agreed
statement of work and costing. 

9.8 Transition of the Hypercom Factory. The parties shall cooperate to facilitate the
transition of the Hypercom Factory operations from Hypercom to Venture at the Facility.

9.9 Data Security. Venture shall ensure data transmitted by Hypercom is secure from
unauthorized access, use, and duplication by employees, or outside parties through utilizing
effective, standard information technology practices including password protection, data encryption
and similar best practices. Venture shall also ensure data transmitted by Hypercom is stored,
secured and backed-up regularly.

10. INTELLECTUAL PROPERTY OWNERSHIP

The following summary table sets out, in simplified form, the parties’ respective ownership rights
in Intellectual Property:

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	 	 	 	 	Improvements	 	 	 	 	 	 	 	New
	 	 	Hypercom	 	to Hypercom	 	Venture	 	Improvements to	 	New Product	 	Process
	 	 	Basic IP	 	Basic IP	 	Basic IP	 	Venture Basic IP	 	Technology	 	Technology
	Developed solely by 

Hypercom

	 	Owned by Hypercom
	 	Owned by Hypercom
	 	Not applicable
	 	Owned by Hypercom
	 	Owned by Hypercom
	 	Owned by Hypercom
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Developed jointly 

by the parties

	 	Not applicable
	 	Owned by Hypercom
	 	Not applicable
	 	Owned by Venture
and licensed to
Hypercom
	 	Owned by Hypercom
	 	Owned by Venture
and licensed to
Hypercom
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Developed solely by 

Venture

	 	Not applicable
	 	Owned by Hypercom
	 	Owned by Venture
	 	Owned by
Venture with a
limited license to
Hypercom
	 	Owned by Hypercom
	 	Owned by Venture
with a limited
license to Hypercom

10.1 Basic IP. Hypercom owns and shall continue to own Hypercom’s Basic IP and all
Intellectual Property rights therein and Venture has no ownership rights in Hypercom’s Basic IP.
Venture owns and shall continue to own Venture’s Basic IP and all Intellectual Property rights
therein and Hypercom has no ownership rights in Venture’s Basic IP.

	10.2	 	Improvements.
	 
	10.2.1	 	Hypercom Owned Improvements. Hypercom shall own: (a) all Improvements to Hypercom’s
Basic IP developed by either Hypercom or Venture, or jointly by Hypercom and Venture; and (b)
all Improvements to Venture’s Basic IP developed solely by Hypercom; and (c) all IP or
Improvements to either Hypercom or Venture basic IP paid for by Hypercom either directly as
part of a development project or indirectly amortized into the product cost. Notwithstanding
any other provision in this Agreement, Hypercom Owned Improvements will include any Venture
ideas, suggestions or recommendations to Hypercom regarding Hypercom IP (“Feedback”), Hypercom
is free to use and incorporate such Feedback in Hypercom’s products, without payment of
royalties or other consideration to Venture.
	 
	10.2.2	 	Venture Owned Improvements. Venture shall own all Improvements to Venture’s Basic
IP developed solely by Venture or jointly by Hypercom and Venture, provided that such
improvements are not paid for by Hypercom or developed pursuant to a Hypercom request or
Hypercom specifications.

10.3 New Product Technology. Hypercom shall own all New Product Technology developed by
either Hypercom or Venture or jointly by Hypercom and Venture.

10.4 New Process Technology. Hypercom shall own all New Process Technology developed
solely by Hypercom. Venture shall own all New Process Technology developed solely by Venture, or
jointly by Hypercom and Venture.

10.5 Report. Venture shall, as soon as reasonably possible after becoming aware of any
Improvements or New Technology that Venture has solely or jointly developed, or within [****] of
any Hypercom request, fully report and disclose to Hypercom, in reasonable detail for Hypercom to
fully understand, all such Improvements, New Technology and applicable Venture Basic IP. In
addition, at each QBR in Section 3 and Price Review set out in Section 8, Venture shall provide a
full and detailed report of all such Venture Basic IP, Improvements and New Technology. When
Venture initiates an ECN request pursuant to Section 12 which requires the use of any
Venture-developed Improvements or New Technology, then Venture shall report and fully disclose to
Hypercom in reasonable detail for Hypercom to fully understand all such Improvements or New
Technology and any applicable Venture Basic IP.

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10.6 Confidentiality. Each party’s Basic IP, Improvements and New Technology shall be
maintained in
confidence by the other party in accordance with the confidentiality obligations contained in the
NDA.

10.7 Assignment. Venture hereby assigns, and agrees to assign, to Hypercom all right,
title and interest in and to all Venture-developed Improvements and New Technology owned by
Hypercom, including without limitation, the Intellectual Property rights therein. Hypercom hereby
assigns, and agrees to assign, to Venture all right, title and interest in and to all
Hypercom-developed Improvements and New Technology owned by Venture, including without limitation,
the Intellectual Property rights therein.

	11.	 	LICENSE GRANTS
	 
	11.1	 	License to Hypercom Basic IP/Improvements/New Technology.
	 
	11.1.1	 	Hypercom’s Basic IP. Hypercom grants to Venture, for the Term, a non-assignable,
non sub-licensable, non-exclusive, royalty-free license to use the Basic IP in existence as of
the Effective Date of this Agreement solely to perform its obligations hereunder.
	 
	11.1.2	 	Additional Basic IP/Improvements/New Technology. Hypercom may, at its option,
subject to Section 12 and only for the Term, grant to Venture a non-exclusive, non-assignable,
non-sub-licensable, royalty-free license to use Basic IP created after the Effective Date,
Improvements and New Technology owned by Hypercom solely to perform its obligations hereunder,
provided that, prior to such use, the parties have mutually agreed to the terms of
implementation of a Engineering Change (as defined below).

11.2 License to Venture Basic IP/Improvements/New Technology. Subject to Hypercom’s prior
written approval to use the applicable Venture Basic IP created after the Effective Date,
Improvement or New Technology owned by Venture pursuant to Section 12 or otherwise:

	11.2.1	 	Venture Basic IP/Improvements/New Technology: To the extent necessary to
commercially make, use, reproduce or sell each Product, subject to Section 11.2.2, and under
terms which shall be as mutually agreed, Venture hereby grants a an irrevocable, perpetual,
world-wide, non-exclusive, paid-up, royalty free license to Hypercom, with the right for
Hypercom to grant sublicenses, to make, use, reproduce any Improvements owned by Venture and,
to the extent required to use such Improvements, the same grant of a license for Venture’s
Basic IP, and any New Technology owned by Venture and the right to make, use and sell any
products made by using such Basic IP, Improvements and New Technology. Notwithstanding the
foregoing, the terms provided in this Section 11.2.1 do not apply to any Venture manufacturing
process IP; any such license grant related to Venture manufacturing process IP shall be
mutually agreed to by the parties under commercially reasonable terms and conditions.
	 
	11.2.2	 	Jointly Developed Venture Technology: Venture hereby grants to Hypercom, an
irrevocable, perpetual, world-wide, non-exclusive, paid-up, royalty free license, with the
right for Hypercom to grant sublicenses, to make, use, reproduce: (a) any jointly developed
Improvements owned by Venture and, to the extent required to use such Improvements, Venture’s
Basic IP; and (b) any jointly developed New Technology owned by Venture. Such rights include
the right to make, use and sell any products made by using such Basic IP, Improvements or New
Technology.
	 
	11.3	 	License Restrictions.
	 
	11.3.1	 	Apart from the limited licenses granted above, neither party obtains any interest in the
other party’s Basic IP, Improvements or New Technology. All documents, materials and copies
relating to the foregoing, in whole or in part and in any material form, shall remain the
property of the owner.
	 
	11.3.2	 	A party shall not alter, remove or destroy any proprietary markings or confidentiality
legends or notices placed upon or contained within, or attempt to reverse engineer directly or
indirectly any of the other party’s Basic IP, Improvements or New Technology.
	 
	11.3.3	 	In any action or proceeding relating to a party’s Basic IP, Improvements or New Technology,
the other

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	 	 	party shall not, nor will it assist others to, contest the owner’s title to or the
validity of the owner’s Basic IP,
Improvements or New Technology.
	 
	11.3.4	 	A party shall take such reasonable steps as the other may require from time to time, to
protect the other’s Basic IP, Improvements and New Technology.
	 
	12.	 	ENGINEERING AND SITE CHANGES 
	 
	12.1	 	Venture Proposed Changes.
	 
	12.1.1	 	General Restriction. Subject to the terms of this Section, Venture may, with
Hypercom’s written consent: (a) relocate any part of the Facility; (b) make any change to the
Manufacturing Procedures, the Product Specifications, quality assurance processes; or (c)
change any other Hypercom requirements as set out in this Agreement related to a Product,
including without limitation the manufacturing or supply of a Product (collectively, (a), (b)
and (c) are an “Engineering Change” or an “ECN”).
	 
	12.1.2	 	Change Procedure. Where Venture wishes to make an Engineering Change, Venture shall
issue an ECN, which shall include, without limitation, sufficient details regarding the nature
of the proposed change, the reason for the proposed change, details regarding its
implementation, the impact of the change (including but not limited to scheduling and Prices)
on any Purchase Orders or Releases, and the proposed implementation date of the Engineering
Change. Promptly after issuing the foregoing ECN, Venture shall, at a mutually agreed upon
cost, provide Hypercom with sufficient evaluation samples of the affected Product (after
having incorporated the Engineering Change) and other information requested by Hypercom to
enable Hypercom to evaluate the Engineering Change. Hypercom may, acting in its sole and
absolute discretion, reject any Engineering Change and shall notify Venture in writing of such
rejection within a reasonable period of time from its receipt of such Product samples and
other information. While Hypercom is considering an Engineering Change or if Hypercom rejects
an Engineering Change, Venture shall continue to manufacture and supply a Product, in
accordance with the terms of this Agreement, without the Engineering Change. Where Hypercom
provides its written approval of the Engineering Change, Venture shall implement the change on
a mutually agreed upon schedule.
	 
	12.2	 	Hypercom Requested Changes. Hypercom may, at Hypercom’s cost, amend Hypercom drawings
or designs, or the Specifications, through an ECN at any time prior to the manufacture of the
affected Products, provided Hypercom pays to Venture any reasonable non-recurring charges, if
any, and/or revised Prices for such Products. Subject to agreement in the charges and expenses
and/or revised Prices, Venture shall implement such amendment within a period of time as
mutually agreed by the parties. Where the ECN is required to bring Products into compliance
with applicable laws, statutes, regulations, codes, standards or other requirements, Venture
shall, at Hypercom’s cost and using commercially reasonable efforts, implement the amendment
as soon as possible.
	 
	13.	 	QUALITY ASSURANCE 

13.1 Quality System. Venture shall establish, implement and maintain throughout the Term a
quality system which meets the requirements of ISO 9001:2000 (and will use best efforts to attain
ISO 14001 certification) and the Quality Management Policy attached hereto. The overall Hypercom
quality target is to accept only Products fully conforming to the Specification. Venture will
provide a Quality Management Plan for each Product that includes but is not limited to the
following areas; manufacturing process and capability metrics, product certification and in process
and final inspections standards. The Quality Management Plan must be mutually agreed to by the
parties prior to the start of mass production of each Product.

13.2 Inspection. Hypercom shall have the right to inspect Products on Venture premises
including the use of source inspection as and when it determines necessary in its sole discretion.
If Hypercom determines that the Products do not meet specifications or quality standards, Venture
shall immediately implement corrective measures as directed by Hypercom and agreed to by Venture to
bring the Products into conformance.

13.3 Quality Issues. Should either party become aware of any quality issues, design or
manufacturing defect, or

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other issues, whether or not supplier-related which may impact Venture’s
compliance with the Product
Specifications hereunder, then such party shall promptly notify the other party of the nature of
such issues and provide the known technical details. Hypercom reserves the right to suspend
Product shipments until resolution of any of the above issues.

13.4 Venture Corrective Action. Where problems or deficiencies are identified as provided
for in this Section 13 and in Section 14, Hypercom may issue Venture Corrective Action Requests
(“SCAR”) to Venture. Venture shall immediately reply to a SCAR, and take immediate corrective
action acceptable to Hypercom to prevent the recurrence of any and all deficiencies or problems
identified in such SCAR. Venture shall notify Hypercom as soon as a deficiency or problem
identified in a SCAR is corrected.

13.5 SCAR responsiveness. SCAR action responsiveness (based on the class of the SCAR and as
measured from the issuance of the SCAR) shall be within five days unless otherwise negotiated and
documented between Hypercom and the Venture. Containment measures shall be subject to the nature
of the deficiencies noted and may be within [****].

14. PLANT AUDITS AND INSPECTIONS

14.1 Audits and Inspections. Hypercom, employees and customers, may from time to time
during the Term, during normal business hours and following reasonable notice to Venture, with
Venture’s full cooperation and assistance, enter and remain at Venture’s Facility, or any other
premises or location approved by Hypercom where any Hypercom Material, Hypercom Equipment or a
Product may be stored or kept by Venture, to review, inspect, test and to conduct audits of: (a)
the facilities, the Products, Venture’s operations, the care and control of the Products, the
Hypercom Material and Hypercom Equipment and any non-Hypercom property used in the manufacture,
test, package and supply of the Products to Hypercom; and (b) Venture’s quality control and other
procedures (including without limitation restricted access, signage and security) all as necessary
for Hypercom to confirm satisfy itself of Venture’s compliance with its obligations under this
Agreement. Hypercom, and its employees shall also have: (y) the right to examine all applicable
records and reasonable supporting data held by Venture; and (z) reasonable access to its staff
including technical staff, to determine the identity and scope of Improvements and New Technology
whether solely or jointly developed by Venture, which Hypercom reasonably believes Venture has not
adequately disclosed in accordance with this Agreement or to ensure compliance with the terms of
this Agreement. For any products or services provided under this Agreement, Venture shall maintain
complete and accurate books and records in connection with such items. Venture shall retain such
records for [****] after delivery of such items and shall make such records available to Hypercom
or its third party auditor.

	15.	 	WARRANTIES
	 
	15.1	 	Warranties. Venture warrants to Hypercom the following:
	 
	15.1.1	 	Product Warranties. For [****] from the date Products are shipped to the Delivery
Location (“Warranty Period”) that the Products: (a) have been manufactured in accordance with
Hypercom’s applicable Manufacturing Procedures and the Product Specifications; (b) will meet
mutually agreed Hypercom performance requirements confirmed by mutually agreed written testing
procedures; (c) shall be free from defects in workmanship, (d) shall be free from defects in
material supplied by Venture to the extent such material supplied defects should, or would,
have been detected through compliance the Quality Management Plan and Process Management Plan;
(e) comply with applicable laws for the country of origin; and (f) any services provided by
Venture hereunder shall be performed consistent with accepted industry standards and practice.
In the event that during any [****] Calendar Day period of the Term, the percentage of
Products that fail to meet the above warranty is equal to or in excess of the “Product
Warranty Failure Percentage” set forth in the Product Schedule Hypercom may immediately
terminate this Agreement with respect to the relevant Product. If no Product Warranty Failure
Percentage is provided in a Product Schedule or no Product Schedule applies, the default
Product Warranty Failure Percentage is [****]%. In addition, the warranties provided for in
Section 15 are the sole and exclusive warranties provided by the Venture in relation to the
Products and all implied or statutory warranties and all other warranties implied by law as to
merchantability, quality or fitness for a particular purpose, or otherwise arising from course
of dealing or usage of trade or any other express or implied warranties or

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	 	 	representations are
excluded.
	 
	15.1.2	 	Title. Venture has the right, title, and interest to convey the Products, and that
the Products are free of all liens, charges, encumbrances, or claims. If at any time Venture
shall incur any indebtedness that has become a lien upon the Products or any part thereof or
which may become a claim against Hypercom, or in the event a claim is asserted against
Hypercom alleging that the Products or Services are infringing, Venture shall immediately pay
such claim or indebtedness or cause such lien to be released and discharged by posting a bond
or otherwise at its expense and indemnify Hypercom against any damages or expenses.
	 
	15.1.3	 	Non-infringement. Excluding any content provided by Hypercom the Products nor any
other deliverables, nor any part, product or software sold, distributed, licensed or supplied
by Hypercom in connection with the Services, Products or other deliverables, do or will
infringe any patent, copyright, trademark or other proprietary right or misappropriate a trade
secret of any third party.
	 
	15.1.4	 	Litigation. There is no litigation or proceeding whatsoever, actual or threatened,
against Venture, or breach, default, or alleged breach or default of any agreement, order, or
award binding upon it, in each case, which would materially affect Venture’s ability to
perform any of its obligations under this Agreement.

15.2 Warranty Remedy. Products not meeting the above warranties (“Defective Product”) shall
be returned pursuant to Section 7.2 and, at Hypercom’s option, subject to Hypercom’s remedies under
Section 7.1. Venture shall promptly, at Hypercom’s election: (a) repair or replace the Defective
Product at no cost to Hypercom; (b) issue a credit for all amounts paid in connection with such
Defective Product; or (c) in the event that Hypercom has lost its customer order as a result of the
Defective Products or Venture cannot deliver repaired or replacement Products to Hypercom within
[****] Calendar Days of their return to Venture, issue a refund to Hypercom. All Defective
Products repaired or replaced under warranty shall be warranted for a period equal to the longer
of: (y) the remainder of the original Warranty Period; or (z) [****]. Except as provided in
Section 15.3, 15.4 or Section 17, Venture’s liability for any Defective Product under Section
15.1.1 shall not exceed the Product Price for such Defective Product, plus any shipping cost
incurred by Hypercom for such Defective Product.

	15.3	 	Epidemic Failure Warranty.
	 
	15.3.1	 	If at any time prior to [****] after the Product Delivery Date by Venture, [****] field
returns rate of a common Product family should fail for any cause as set forth under Section
15.1.1 (an “Epidemic Failure”), Hypercom will promptly inform Venture of the nature of such
failure, provide the known technical details, and Hypercom and Venture agree to diligently
work together in good faith to promptly resolve these issues.  This warranty shall survive any
inspection, delivery, or acceptance of the Products or any payment for the Products by
Hypercom.
	 
	15.3.2	 	In the event of an Epidemic Failure, Venture will use its best efforts to remedy the
situation and minimize adverse impact to Hypercom customers. The parties will immediately work
together on a recovery plan that addresses the repair or replacement of the affected Product
within a commercially reasonable time frame and shall be implemented at Ventures’ expense. 
	 
	15.3.3	 	Any limitations contained in this Section 15.3 will not serve to limit Venture’s legal
liability to Hypercom for product liability.

15.4 Exclusions. The above warranties shall not apply to any Products which have been
misused, damaged, placed in an unsuitable physical or operating environment or maintained
improperly by Hypercom or caused to fail by any material, product or service supplied by Hypercom;
or any Products with a defect solely caused by the defective written Hypercom Property design or
other fault in any Hypercom Property provided by Hypercom.

15.5 Assignment of Warranties. Venture hereby assigns to Hypercom any and all rights which
Venture has under any and all warranties provided by the manufacturers of component parts which
Venture incorporates into the Products which are sold to Hypercom.

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16. SUPPORT SERVICES

16.1 Support. Venture shall, at Venture’s cost, provide technical assistance, functionally
equivalent replacement Products, repair services and failure analysis services (collectively,
“Support Services”) on any individual Product, including discontinued Products, during the Warranty
Period. After the expiry of the Warranty Period Venture shall provide Support Services for an
additional period of [****] at commercially reasonable rates. All repaired or replacement Products
shall be warranted in accordance with the provisions of Section 15. Venture may not discontinue
the manufacture or supply of Products or Support Services without Hypercom’s prior written consent.
Venture shall also, at Hypercom’s request and at mutually-agreed cost, provide Venture personnel
at a Hypercom designated site to provide other functional liaison services to Hypercom, as Hypercom
may reasonably require.

16.2 Failure Analysis. As part of the Support Services, Venture shall complete a failure
analysis on all returned Products within [****] Calendar Days of receipt of such Products. Venture
shall deliver to Hypercom, within [****] Calendar Days of receipt of the returned Products, a
written report of the analysis and Venture’s findings. If more than [****]% of all units of a
Product shipped to Hypercom within any [****] Calendar Day period are defective, then Venture
shall, at its cost, immediately initiate a corrective action plan and perform a routine cause
analysis on a Product. Venture shall update Hypercom on a daily basis with the status and findings
of the said analysis and plan and provide such other reasonable information required by Hypercom in
connection therewith.

16.3 Service Parts. Venture shall promptly notify Hypercom in writing whenever a service
part manufacturer announces “end-of-life” for a spare part. Hypercom shall purchase their
estimated requirements for service parts beyond the period of time in which Venture is required to
stock parts for ongoing production requirements. Hypercom and Venture shall work in a cooperative
effort to determine the most economical order quantity for purchase by Hypercom and consignment to
Venture of service parts and when to make last time buys for purchased parts and manufactured parts
based on such factors as cost to manufacture, component and material availability and inventory
carrying costs.

17 INDEMNITIES AND LIMITATION OF LIABILITY

17.1 Third Party Claims. Subject to Section 17.2, Venture shall indemnify and hold harmless
Hypercom and its directors, officers, employees, and other authorized Hypercom representatives
(in this Section 17, collectively, the “Hypercom Indemnified Parties”) from and against any and all
liability including without limitation, all costs, expenses, claims, damages, profits, reasonable
legal fees and other amounts incurred by the Hypercom Indemnified Parties in connection with such
liability resulting from any third party claims against the Hypercom Indemnified Parties on account
of injuries, including death, to any person, damage to property, or other third party claims,
demands or proceedings against the Hypercom Indemnified Parties, to the extent caused by: (a) the
fault, misconduct or negligence of Venture, its employees, representatives, agents or other persons
within its control; or (b) the breach by Venture of its obligations hereunder; the Hypercom
Indemnified Parties shall promptly notify Venture of any such claim and, where the parties agree
Venture is fully liable for the claim, loss, damage, injury or liability, Venture shall have
control, at its sole cost, of any negotiation, arbitration or litigation concerning such claims
except that Venture shall not enter into any settlement agreements without the Hypercom Indemnified
Parties’ prior written consent, which shall not be unreasonable withheld or delayed. The Hypercom
Indemnified Parties shall provide, at Venture’s cost, all available information and other
reasonable support to Venture in respect of its investigation or defense of any such claim or suit.

17.2 Infringement. If a third party claims or alleges that a Product, or any component
thereof or any other material provided or developed by Venture hereunder, infringes its patent,
copyright, trade mark, trade secret, industrial design, topographies or other Intellectual Property
rights anywhere in the world, Venture shall and does hereby indemnify and hold the Hypercom
Indemnified Parties harmless from and against all claims or allegations and other amounts incurred
by the Hypercom Indemnified Parties in connection with such third party claim, including without
limitation any monetary relief awarded against the Hypercom Indemnified Parties by a court or other
judicial, legal or arbitral process, authority or jurisdiction, or a final settlement amount, if
any, as a result of such third party claim and Venture shall also, at Venture’s cost, defend the
Hypercom Indemnified Parties against the third party claim, during which defense, the Hypercom
Indemnified Parties may be independently represented, at Venture’s cost, by counsel of the Hypercom
Indemnified Parties’ selection. The Hypercom Indemnified Parties shall

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promptly notify Venture of such claim and, at Venture’s cost, cooperate in the defense and all
related negotiations. In addition to the other obligations set out in this Section, Venture shall,
to the extent legally allowable, continue to supply Products and shall use its commercially
reasonable efforts, at its own cost, to procure for the Hypercom Indemnified Parties and its
customers the right to continue using, importing, exporting and selling a Product; or with the
consent of the Hypercom Indemnified Parties, replace the same with a comparable non-infringing
Product or modify a Product so as to avoid the infringement. Where Venture has not been able to
successfully procure one of the aforementioned remedies Venture shall, in addition to its
indemnification obligations hereunder, promptly refund to the Hypercom Indemnified Parties all
amounts paid to Venture under this Agreement and the Hypercom Indemnified Parties may, in its sole
discretion and without any penalty, liability or charge, notwithstanding any other term or
provision hereof, immediately by written notice to Venture, terminate this Agreement.
Notwithstanding the foregoing, except for Improvements or New Technology solely created by Venture
hereunder, Venture shall have no obligation to the Hypercom Indemnified Parties under this Section
17.2 where the claims relate solely to Hypercom’s Property or Hypercom Product designs provided to
Venture.

17.3 Consequential Damages. EXCEPT FOR VENTURE’S OBLIGATIONS UNDER SECTIONS 10, 11, 17,
AND 18, IN NO EVENT SHALL EITHER PARTY, ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, CONTRACTORS OR
OTHER REPRESENTATIVES BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, EXEMPLARY
OR INDIRECT COSTS, EXPENSES OR DAMAGES, INCLUDING WITHOUT LIMITATION, LITIGATION COSTS,
INSTALLATION AND REMOVAL COSTS, LOSS OF DATA, DAMAGE TO PROPERTY, LOSS OF PRODUCTION OR PROFIT,
ARISING UNDER THIS AGREEMENT, REGARDLESS OF THE CAUSE OF ACTION (WHETHER IN CONTRACT, TORT
(INCLUDING NEGLIGENCE), STRICT LIABILITY, OR OTHERWISE,) AND EVEN IF A PARTY HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH COSTS OR DAMAGES.

18. CONFIDENTIALITY.

18.1 The parties shall comply with the provisions of the NDA. Venture shall also ensure that all of
its employees who shall work on or be engaged in connection with the manufacturing and supply of a
Product to Hypercom hereunder, or who have visited or shall visit Hypercom’s premises, have signed
or shall sign the Employee Acknowledgement, in the form approved by Hypercom and consistent with
the requirements set out in Schedule A.

19. RESTRICTIONS.

19.1 Use of Hypercom Property. Venture shall not: (a) use any of Hypercom Property for any
purpose other than to perform its obligations hereunder; (b) except as otherwise permitted under
the NDA, provide to, copy or disclose Hypercom Property to any party other than Hypercom including
without limitation Venture’s agents, contractors and Ventures, without Hypercom’s prior written
consent, which may be withheld in Hypercom’s sole discretion, and unless and until that party has
executed and delivered a non-disclosure agreement in a form consistent with Schedule A; or (c)
place, hold, maintain or store any of Hypercom Property in any place, facility or location other
than the Facility, without the prior written consent of Hypercom.

19.2 Competing Products. Venture shall not: (a) manufacture or perform activities directly
related to manufacturing, or the provision of services for, any products which directly compete
with the Products or share significantly similar functionality with the Products within the same
Venture facility as the Products; or (b) use the same core technical resources to manufacture, or
provide service for, any Products which directly compete with the Products or share significantly
similar functionality the Products.

19.3 Acknowledgement. Venture acknowledges and agrees that any breach, violation or threat
of breach or violation of the restrictions set out in Sections 19.1, 19.2 and 19.4 shall result in
irreparable harm to Hypercom for which damages would be an inadequate remedy and therefore, in
addition to its rights and remedies otherwise available hereunder or under law, Hypercom may seek
equitable relief as a court may deem proper, including injunctions, to prevent any such breach or
violation.

19.4 Subcontracting. Venture shall not without the express prior written consent of
Hypercom subcontract any of the activities for which it is responsible hereunder

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20. INSURANCE

20.1 During the term of this Agreement, Venture, at its sole cost and expense, shall carry and
maintain the following insurance coverage’s (insuring Venture, its agents, employees or associates)
issued by insurance companies which are (a) licensed to conduct business in the jurisdiction in
which the Products or services are provided and (b) internationally reputable insurers with a
minimum industry rating as is customary and acceptable in the industry under the prevailing
circumstances.

20.2 Comprehensive general liability insurance covering all operations of Venture, including, but
not limited to, Products/completed operations, broad form property damage and blanket contractual
liability specifically covering the indemnification provisions in Section 17 above, against claims
for personal and bodily injury and property damage with a limit of not less US$[****] per
occurrence, and shall contain cross liability and severability of interest provisions.  However, if
Venture’s net worth as reported on its periodic public financial statements falls by more then
[****]% in any given quarter, then the foregoing reference to US$[****] shall automatically be
deemed amended to be US$[****].  In such a case Venture shall be allowed such reasonable time as is
necessary to procure such additional insurance coverage.

20.3 Property insurance covering all real and personal property and inventory, including Products,
for “all risks” of physical loss or damage, including business interruption and boiler and
machinery breakdown, subject to a minimum limitation of US$[****]. This insurance must cover (a)
any equipment owned, leased or used by Venture to perform work or provide services under this
Agreement (the “Venture Equipment”); and (b) property in the care, custody and/or control of
Venture which is owned by Hypercom (the “Hypercom Property”).  This insurance must provide coverage
on a replacement cost basis, and name Hypercom as a loss payee with respect to any loss or damage
to Hypercom Property only.  Venture shall use the proceeds of the insurance referenced above to
restore the manufacturing capacity which has been affected by the event giving rise to the payment
of the insurance proceeds to Venture.

20.4 Certificate of Insurance.  Venture shall provide Hypercom with a Certificate of Insurance
prior to or at inception of this Agreement evidencing the above insurance policies are in full
force and effect.  The policies described in this Section shall name Hypercom as additional insured
and shall stipulate that such insurance shall apply as primary and non-contributory to any
insurance placed by Hypercom.  Venture shall require each insurer to give Hypercom [****] Calendar
Days written notice before the policy or policies are cancelled or materially altered.  The
foregoing requirements concerning the types and limits of insurance coverage to be maintained by
Venture, and any approval or waiver of said insurance by Hypercom, is not intended to and shall not
in any manner limit or qualify Venture’s liabilities and obligations whether imposed by law or
assumed pursuant to this Agreement, including but not limited to the provisions concerning
indemnification. If such insurance policy is cancelled, Hypercom may terminate this Agreement
without any liability, obligation or duty to Venture.

21. COMPLIANCE WITH LAWS 

21.1 Compliance. Each party specifically understands and agrees that none of them shall
make any offer, payment, promise to pay or authorization of the payment of any money, or any
offer, gift, promise to give, or authorization of the giving of anything of value, to any foreign
official, any foreign political party or foreign official thereof or any candidate for foreign
political office, or any other person to influence or reward action or inaction respecting this
Agreement or to seek an improper advantage (“Improper Payments”). In the previous sentence, the
word “foreign” is construed from the perspective of the United States of America. Each party
represents and warrants that neither such party nor any Affiliate, employee, agent or authorized
representative of such party nor any Affiliate, employee, agent or authorized representative of
such party has made any such Improper Payments.

22. TERMINATION

22.1 Termination by Either Party. A party may terminate this Agreement: (a) in the event
of a default by the other party of any material obligation in this Agreement, effective [****]
Calendar Days after notice of such default and provided that the defaulting party has not remedied
the default during such [****] Calendar Day notice period to the non-defaulting party’s reasonable
satisfaction; (b) immediately by notice in the event of a [****] consecutive default by the other party of a material obligation (which for the purposes of this Section shall
include, without

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limitation, failure to meet KPIs for three consecutive quarters) that the
defaulting party has previously breached twice but remedied pursuant to Section 22.1(a); (c)
immediately upon written notice if the other party ceases to carry on its business; (d) immediately
if either party becomes the subject of any proceeding under state, provincial or federal law for
the relief of debtors or otherwise becomes insolvent, bankrupt or makes an assignment for the
benefit of creditors, or upon the appointment of a receiver for the other party or the
reorganization of the other party for the benefit of creditors; (e) immediately upon any attempt by
either party to assign, delegate, sublicense, or otherwise transfer this Agreement or its rights,
except as provided for herein; (f) immediately upon any breach by either party of any
confidentiality or proprietary information provisions of this Agreement; or (g) Either party may
terminate this Agreement at any time upon [****] Calendar Days written notice.

	22.2	 	Intentionally Blank.
	 
	22.3	 	Consequences of Termination.
	 
	22.3.1	 	Outstanding Orders. All Purchase Orders or Releases issued prior to the expiration,
non-renewal or termination of this Agreement shall be terminated as of the effective date of
termination cancelled and Section 5.4 shall apply, unless Hypercom notifies Venture in writing
to fulfill any such Purchase Orders or Releases, in whole or in part, in which case Venture
shall fulfill such Purchase Orders or Releases in accordance with the terms of this Agreement.
Upon expiry, non-renewal or termination of this Agreement, Hypercom shall purchase all Special
Inventory from Venture, and any sums payable to Venture by Hypercom shall become immediately
due and payable. In addition, Hypercom shall be responsible for either assuming Ventures’
obligation for the purchase of Components under Section 5.1.2 or shall compensate Venture for
all costs related to the cancellation of these Component purchase obligations.
	 
	22.3.2	 	Purchase/Return of Equipment/Material. If upon expiration or termination of this
Agreement outstanding Purchase Orders or Releases are terminated in accordance with this
Agreement, then Hypercom shall, purchase from Venture all of the Hypercom Supplied Items then
in the possession of Venture at net book value calculated as of such expiration or termination
date.
	 
	22.3.3	 	Return of Hypercom Property. Subject to Subsection 22.3.2, and except to the extent
reasonably necessary for Venture to perform its post-termination obligations under this
Agreement, within [****] Calendar Days of termination of this Agreement, Venture shall return
to Hypercom all tangible Hypercom Property, other than documents in electronic, magnetic or
other media. Venture shall return to Hypercom one copy of all hard copy documents in its
possession, shall destroy all other copies of documents as well as all electronic versions of
the documents, and shall deliver to Hypercom a certificate signed by an authorized senior
officer of Venture certifying that all such material has been returned or destroyed and that,
subject to Subsection 22.3.2, all other Hypercom Property has been returned to Hypercom. The
treatment of any Hypercom Consigned Items in Venture’s possession at termination shall be in
accordance with Section 23.
	 
	22.3.4	 	Transitional Services. In the event of the termination of this Agreement for any
reason, Venture acknowledges that Hypercom may need to transition the manufacturing services
related to the Products from Venture to Hypercom or to a third party, and agrees to provide
Hypercom with Transitional Services (defined below) in accordance with this Section. Following
the termination of this Agreement for any reason, Hypercom shall advise Venture of its
intentions with respect to the transitioning of Product manufacturing to Hypercom or to a
third party. Venture agrees to work professionally, diligently and in good faith with Hypercom
and/or the third party to implement the transition plan through the provision of the
Transitional Services requested by Hypercom. Without limitation, the “Transitional Services”
may include:

	 	(a)	 	Providing Hypercom with a last time buy opportunity for the
Products at the Prices in effect as of the termination date during the [****]
transitional period;
	 
	 	(b)	 	Providing assistance to Hypercom to exercise its ownership
and/or license rights set forth in Section 10 and Section 11;

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	 	(c)	 	Provide latest manufacturing know how related to Hypercom’s
products including but not limited to documentation, drawings, metrics,
processes, procedures, assembly techniques, test specifications, and anything
that would be helpful to Hypercom or Hypercom’s manufacturing partner.
	 
	 	(d)	 	Delivering Hypercom Consigned Items, Hypercom Equipment or
Hypercom Property in Venture’s possession to Hypercom or (upon instruction from
Hypercom) to a third party;
	 
	 	(e)	 	Providing the names and addresses of Venture’s sources for
parts or components used by Venture in the manufacture of the Products that are
not provided by Hypercom or manufactured by Venture, and reasonable assistance
to enable the purchase of all such parts or components directly from these
vendors;
	 
	 	(f)	 	Implementing any other reasonable measures required by Hypercom
to reduce any disruption to Hypercom and/or its end customers resulting from
the transition of manufacturing services.

Venture shall provide the Transitional Services to Hypercom for a period of [****] following the
termination date where (1) Hypercom terminates this Agreement pursuant to Sections 22.1(a) – (f) or
Venture terminates this Agreement pursuant to Section 22.1(g) such Transitional Services shall be
provided at no cost to Hypercom, with the exception of Section 22.3.4(a); or (2) the Agreement is
terminated for any other reason, or the Agreement expires, then such Transitional Services shall be
provided at mutually agreed upon rates that shall not exceed the rates charged by Venture to other
parties for equivalent or substantially similar services. The foregoing Transitional Services are
in addition to, and shall not be construed as a substitute for, the other Venture obligations
herein that survive termination.

23. HYPERCOM EQUIPMENT AND HYPERCOM MATERIAL

23.1 Provision of Hypercom Material and Hypercom Equipment. Hypercom shall provide
Hypercom Material and Hypercom Equipment to Venture for use by Venture to manufacture and supply
the Products exclusively for Hypercom. Venture shall use Hypercom Material on a “first-in,
first-out” basis to avoid obsolete or unusable material. Venture shall, at its cost, procure,
store, install, test and maintain all manufacturing, tooling, testing and other equipment and
material, including any Hypercom Property, required for the manufacturing and the supply of the
Products. Venture shall perform, at the Facility, all routine installation, testing, repair and
maintenance of Hypercom Equipment and all inspection and testing of Hypercom Material. In the event
Hypercom Equipment requires repair, upgrading or calibration or has exceeded its useful life,
Venture shall notify Hypercom of such and Hypercom shall reimburse or replace such Hypercom
Equipment. Both parties recognize that such reimbursement shall only be for actual costs incurred
relating to materially significant Hypercom Equipment. “Materially significant” means any specific
and unique equipment and tooling required to manufacture and test Hypercom products that are not
commercially available, with a dollar cost per line item exceeding US$[****] or with a dollar cost
per collective line items exceeding US$[****] per each expenditure.

23.2 Tooling. Certain Hypercom tooling and equipment (the “Hypercom Tooling”) will be
loaned to Venture for use in its performance of its obligations under this Agreement. Hypercom
Tooling shall also include such other tooling and equipment which in the future may be provided to
Venture by Hypercom for its use in the performance of its obligations under this Agreement.
Venture agrees to (i) maintain possession of and direct control over the Hypercom Tooling on the
premises of the Facility; (ii) use the Hypercom Tooling solely for the purposes of manufacturing
Products for Hypercom as set forth in this Agreement; and (iii) preserve and maintain the Hypercom
Tooling in good repair and working order. Upon the termination or expiration of this Agreement,
Venture will return the Hypercom Tooling to Hypercom at Hypercom’s expense in the same condition
that the Hypercom Tooling was received (except for reasonable wear and tear). The above provisions
shall not apply to any Hypercom Tooling which is used or located otherwise than at the Facility
(“Supplier Tooling”). Any Hypercom Tooling or Supplier Tooling must remain at the Hypercom Factory
unless otherwise agreed to in writing by Hypercom. Venture shall use reasonable efforts to ensure
that such Supplier Tooling is preserved and maintained in good repair and working order and are
returned to Hypercom at Hypercom’s expense in the same condition that the Supplier Tooling was
received (except for reasonable wear and tear) upon the termination or expiration of this
Agreement. Venture agrees and acknowledges Hypercom retains exclusive right, title, and ownership in and to the Hypercom
Tooling and

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Supplier Tooling. Supplier Tooling shall also include such other tooling and equipment
which in the future may be provided to suppliers for use by the supplier with respect to the
manufacture of Products under this Agreement. Venture and Hypercom shall maintain a current
listing of all Hypercom Tooling and Supplier Tooling which shall be reviewed, as necessary, at the
QBRs.

23.3 Storage. Without limiting any obligations of Venture Section 23, Venture shall, at
its cost, be responsible for safekeeping at its Facility all Hypercom Material and Hypercom
Equipment, shall maintain the same in good condition and repair, and shall store the Hypercom
Material and Hypercom Equipment at its Facility free of charge in a place that meets the
requirements of this Agreement. All such Hypercom Material and Hypercom Equipment, while in the
possession and under the control of Venture, shall be at Venture’s risk.

23.4 Tracking. Venture shall maintain complete and accurate records of the quantity of
Hypercom Material received from Hypercom, along with the quantity used in Products shipped to
Hypercom and quantity wasted in the manufacture, test and supply of Products. Venture shall provide
such records or related information as required from time to time by Hypercom during the Term and
Hypercom shall, on two Business Days notice to Venture, audit such information at Venture’s site.
Venture may maintain and properly safeguard any such wasted Hypercom Material so that it may be
audited hereunder. To this end, Venture shall maintain and properly safeguard any wasted Hypercom
Material for a period not to exceed six months, provided that Venture informs Hypercom before
scrapping such wasted Hypercom Material.

23.5 Delivery of Hypercom Supplied Items and Consigned Items. Except as agreed otherwise,
All Hypercom Supplied Items and Consigned Items shall be delivered in accordance with the Section
23, provided that the costs of freight shall be borne by Hypercom and other costs shall be
allocated by mutual agreement. Venture shall assist with any customs, export or trade related
approvals, duties and other obligations as required in Section 6.4.

	23.6	 	Hypercom Supplied Items.
	 
	23.6.1	 	Orders for Hypercom Supplied Items. After execution of this Agreement, Venture may
order, take delivery of and pay for, by way of a Purchase Order, those Hypercom Supplied
Items, if any, required to manufacture the Products ordered by Hypercom. All Purchase Orders
submitted to Hypercom by Venture shall include a description of the required Hypercom Supplied
Items, the quantities ordered, the prices thereof, the proposed delivery date, and such other
information as the parties may agree from time to time. Purchase Orders may be issued in
writing, by mail, facsimile or by electronic means as the parties may from time to time agree.
	 
	23.6.2	 	Title to Hypercom Supplied Items. Title to Hypercom Supplied Items shall pass from
Hypercom to Venture only upon payment in full by Venture to Hypercom for the Hypercom Supplied
Items.
	 
	23.6.3	 	Hypercom Prices. During the Term, Venture shall pay to Hypercom, on account of the
ordered Hypercom Supplied Items, the prices set out in the applicable Product Schedule, or
such other prices as set by Hypercom from time to time for the Hypercom Supplied Items. Prices
are FCA Origin (Incoterms 2000).
	 
	23.6.4	 	Hypercom Invoice. Hypercom shall invoice on or as soon as reasonably practicable
after, the delivery of Hypercom Supplied Items to Venture. Venture shall pay Hypercom the
amount specified in the invoice within 45 Calendar Days from date of invoice.
	 
	23.6.5	 	Hypercom Consigned Items. Hypercom shall supply to Venture, on a no-charge
consignment basis, Hypercom Consigned Items, if any, to enable Venture to exclusively
manufacture and supply the Products to Hypercom pursuant to the terms of this Agreement.
	 
	24	 	Dispute Resolution.

24.1 Escalation. Before filing or initiating any suit, action, or legal proceeding
relating to this Agreement, the parties shall attempt in good faith to settle between the parties
hereto all disputes, controversies, or differences arising out of or relating to this Agreement (“Disputes”) in accordance with the following
provisions. First, the

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parties shall each make available an executive of at least director-level
seniority with authority to resolve such dispute (the “Executives”), and such Executives shall
attempt to resolve the Dispute for a period of 30 Calendar Days. If the Executives are unable to
resolve the Dispute during such 30 Calendar Day period to both parties’ satisfaction, then either
party shall submit the dispute to non-binding mediation as follows. The party that did not submit
the Dispute to mediation shall have 15 Calendar Days to select in good faith an impartial
unaffiliated third party to act as mediator (the “Mediator”) and the parties shall submit the
Dispute to the Mediator for resolution. For a period of 30 Calendar Days, the Mediator shall have
the exclusive right to mediate the Dispute. Any meetings between the parties held in conjunction
with this dispute resolution process shall be held at a location to be mutually agreed upon by the
parties. Each party shall pay its own expenses and costs in connection with the presentation of
such party’s case. The remaining costs of the mediation, including fees of the Mediator, shall be
borne equally by the parties. If at the end of the period for mediation the Dispute remains
unresolved, subject to Section 24.2 any party may exercise its rights and remedies at law or in
equity.

24.2 Arbitration. The parties must use commercially reasonable efforts to resolve any
disputes arising under or relating to this Agreement. In the event the parties are not able to
resolve such dispute pursuant to Section 24.1, either party may, by issuing a notice to the other
party, settle such dispute by arbitration in accordance with the Commercial Rules of the American
Arbitration Association then in force, provided that arbitration proceedings may not be instituted
until 15 Calendar Days after delivery of a notice of arbitration and where the other party has not
remedied the matter within said time period. Arbitration proceedings shall be held at a designated
Hypercom location or such other location as mutually agreed. The arbitration panel shall consist
of one arbitrator as mutually agreed by the parties, failing which, shall be appointed by the
American Arbitration Association. The arbitrator shall have no power or authority to make awards or
issue orders of any kind expressly excluded by this Agreement or to award punitive damages and
shall have no power or authority to rule on any issues of intellectual property ownership. The
arbitrator shall provide a written decision setting forth the reasons for its ruling. Judgment upon
the award rendered shall be final and binding and may be entered in any court having jurisdiction
thereof. Both parties shall share equally all costs and expenses of such arbitration proceedings,
except that each party shall bear its own costs and expenses of its attorneys and witness fees and
for the preparation for such proceedings, including discovery. For greater certainty, all disputes
arising in connection with this Agreement which a party wishes to have adjudicated shall be
submitted to confidential arbitration proceedings in accordance with this Section 24.1.
Notwithstanding the foregoing, either party may apply to any court of competent jurisdiction for
preliminary or interim equitable relief, including but not limited to breach of the parties
obligations or duties in Sections 10, 11, 17, 18 or 19.

24.3 Limitations on Dispute Resolution. Notwithstanding the foregoing, either party may at
any time seek equitable relief without first attempting to resolve a dispute under Section 24.1 or
Section 24.2 of this Agreement provided, however, that such party notifies promptly the other party
in writing after filing any such action that seeks equitable relief. Additionally, neither Section
24.1 nor Section 24.2 shall serve to limit, restrict or prevent either party from exercising any
rights of termination that it possesses under and pursuant to the provisions of Section 22 of this
Agreement.

25. Miscellaneous

25.1 Assignment. Venture shall not assign any right or interest under this Agreement, a
Purchase Order or Release (excepting solely for moneys due or to become due) without the prior
written consent of Hypercom, acting in its sole discretion. Hypercom may, at its sole discretion,
assign any or all of its rights and obligations in this Agreement with Venture’s consent, which
shall not be unreasonably withheld. Any assignment in contravention of this provision shall be
null and void.

25.2 Conflicts or Inconsistencies. If there is any conflict or inconsistency between the
main body of this Agreement, Schedules to this Agreement, the order of precedence of
interpretation, to the extent of such conflict or inconsistency, shall be as follows: (a) main body
of the Agreement, (b) Schedules and (c) a Purchase Order or Release.

25.3 Entire Agreement. This Agreement including the Schedules, and the NDA comprises all
the terms, conditions and agreements of the parties hereto with respect to the subject matter
herein. This Agreement cancels and supersedes all prior agreements and communications on the said subject matter save and except
for the PCBA,

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as amended, NDA and the Employee Acknowledgement, each of which is intended to
survive the execution and delivery of this Agreement, and except for the terms of the PCBA
Agreement, as amended The provisions of the NDA, to the extent of any conflict or inconsistency
with the terms hereof, shall prevail. To the extent of any conflict or inconsistency with the terms
of this Agreement and the PCBA, the terms of this Agreement shall prevail. This Agreement may not
be varied except through a document agreed to and signed by both parties. Any printed terms and
conditions relating to a Product contained in any Purchase Order, Release or in any Venture’s
acknowledgment, invoice or other documentation relating to a Product shall be deemed deleted and of
no force or effect. Any additional typed and/or written terms and conditions contained in any
Purchase Order or Release and any Venture’s acknowledgment, invoice or other documentation shall be
for administrative purposes only, i.e. to identify the types and quantities of Products to be
supplied, line item prices and total Price, delivery schedule, and other similar ordering data, all
in accordance with the provisions of this Agreement.

25.4 Force Majeure. Neither party shall be held responsible for any delay or failure in
performance of any part of this Agreement to the extent such delay or failure is caused by fire,
flood, act of God, action of civil, governmental or military authority, in each case beyond its
reasonable control (collectively “Force Majeure”) and without the fault or negligence of the
delayed or nonconforming party or its subcontractors. When a party’s delay or nonperformance as a
result of such Force Majeure continues for a period of 30 Calendar Days, the other party may
immediately terminate this Agreement or cancel any outstanding Purchase Orders.

25.5 Governing Law and Forum. This Agreement is governed by and construed in accordance
with the applicable laws of [****] without regard to any conflict of laws principles. The parties
expressly agree that the United Nations Convention on Contracts for the International Sale of Goods
shall not apply to this Agreement or to transactions processed under this Agreement. The parties
irrevocably avail themselves to the courts in [****] with respect to any judicial proceedings
related to this Agreement.

25.6 Headings. The headings and sub-headings in this Agreement are used for reference
purposes only and are not intended to be relied upon for purposes of construction or interpretation
of the Agreement.

25.7 No Publicity. Neither party shall publicize nor disclose the existence or terms of
this Agreement or the fact that Venture is supplying to Hypercom, nor the transactions contemplated
hereby, to any third party, other than on a confidential basis to its legal and financial advisors,
without the prior written consent of the other, save and except as may be required by law. Without
limitation, no press releases, public announcements or public displays of any Products made
specifically for Hypercom shall be made without the mutual written agreement of both parties, such
consent not to be unreasonably withheld.

25.8 Notice. Any notice, consent or other document required to be sent pursuant to this
Agreement shall be in writing at the addresses set forth above, and shall be deemed to be validly
given by the delivery thereof to its recipient, either personally, by registered mail, prepaid
mail, prepaid courier or, where a number is provided, by facsimile transmission. Notices shall be
sent to the following:

	 	 	 
	For Venture:

	 	For Hypercom:
	 
	 	 
	Attention:

	 	Attention: [****]
	Legal notices only, copied to:

	 	Legal notices only, copied to:
	Venture Corporation Limited

	 	Hypercom Corporation
	Attention: Legal Department

	 	Attention: Legal Department

Any written notice is deemed to have been received: at the time of its delivery, if sent by
personal delivery, registered mail or prepaid courier; on the fifth Calendar Day following its
sending, if sent by prepaid mail; or upon confirmed receipt if transmitted by facsimile
transmission or otherwise transmitted electronically, as may be permitted in this Agreement for
certain documents. Either party may change the above addresses at any time with prior written
notice as provided above.

25.9 Relationship/Subcontractors. The relationship between Hypercom and Venture is
intended to be and shall be that of buyer and seller. A party and its employees, agents and
representatives shall under no circumstances
be considered agents, partners, and parties to a joint venture or representatives of the other
party. Neither party shall

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act or attempt to act, or represent itself, directly or by implication
as agent, party to a joint venture with the other party, partner or representative of the other, or
in any manner assume or attempt to assume or create any obligation or liability of any kind,
express or implied, on behalf of, or in the name of, the other. Venture shall be responsible to
Hypercom for all work performed, and acts or omissions, by Venture’s subcontractor(s), if Venture’s
use of subcontractors is permitted by Hypercom.

25.10 Successors. This Agreement shall enure to the benefit of and is binding upon the
parties hereto and their successors and permitted assigns.

25.11 Survival. Notwithstanding the expiration or termination of this Agreement, those
provisions of this Agreement which, by their nature, are meant to survive any termination of this
Agreement will so survive.

25.12 Time of the Essence. Time is of the essence in all respects of this Agreement.

25.13 Reduction and Severability. If any provision or any part thereof contained in this
Agreement is, for any reason, held to be invalid or unenforceable in any respect under the laws of
any jurisdiction where enforcement is sought, such invalidity or unenforceability shall not affect
any other provision of this Agreement and this Agreement shall be construed (a) as if such invalid
or unenforceable provision or part thereof had been effectively modified to the extent necessary to
avoid the illegality or unenforceability of such provision, if possible, and if not, then (b) as if
such invalid or unenforceable provision or part thereof had not been contained herein.

25.14 Waiver. No party shall be deemed to have waived the exercise of any right that it
holds under this Agreement or at law unless such waiver is expressly made in writing. Failure of a
party at any time, and for any length of time, to require performance by the other party of any
obligation under this Agreement shall in no event affect the right to require performance of that
obligation or the right to claim remedies for breach under the Agreement or at law. A waiver by a
party of any breach of any provision of this Agreement, unless otherwise expressly stated in
writing, is not to be construed as a waiver of any continuing or succeeding breach of such
provision, a waiver or modification of the provision itself, or a waiver or modification of any
right under this Agreement or at law.

25.15 Further Assurances. Each party shall execute and deliver all such further documents
and instruments and do all acts and things as the other party may reasonably require to carry out
the full intent and meaning of this Agreement, including without limitation all documents necessary
or useful in connection with the granting and perfecting of rights and supply of products and
services contemplated in this Agreement.

25.16 Hypercom Customer Requirements. Venture acknowledges that the customers of Hypercom
have requirements that may change from time to time regarding (without limitation) Specifications,
quality systems, and inspections of manufacturing procedures, the Facility, and other places or
facilities at which any of the Products or Hypercom Property is stored, kept or located. Such
Customer specific requirements shall be included as required from time to time in the applicable
Product Schedules, and Venture shall be bound by those requirements.

25.17 Counterparts/Facsimile Signatures. This Agreement, and any amendment, supplement,
restatement or termination of any provision hereof may be signed, executed and delivered by manual
or facsimile signature in several counterparts of like form, each of which when so executed and
delivered shall be deemed to be an original and such counterparts together shall constitute one and
the same instrument.

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IN WITNESS WHEREOF the parties duly authorized representatives hereto have executed this Agreement
as of the Effective Date.

	 	 	 	 	 	 	 
	Hypercom Manufacturing Resources, Inc.	 	Venture Corporation Limited
	 
	 	 	 	 	 	 
	By:

	 	/s/ Thomas Liguori
	 	By:
	 	/s/ Wong Ngit Leong
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	Thomas Liguori
	 	Name:
	 	Wong Ngit Leong
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	SVP, Chief Financial Officer
	 	Title:
	 	Chief Executive Officer
	 

	 	 
	 	 	 	 

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LIST OF SCHEDULES AS OF THE EFFECTIVE DATE

	 	 	 
	SCHEDULE A

	 	Non-Disclosure Agreement
	SCHEDULE B

	 	Product Schedule
	SCHEDULE C

	 	Pricing Model Template
	SCHEDULE D

	 	Intentionally Blank
	SCHEDULE E

	 	Service Level Agreement and Scorecard
	SCHEDULE F

	 	Quality Management Policy
	SCHEDULE G

	 	IT Infrastructure
	SCHEDULE H

	 	Intentionally Blank
	SCHEDULE I

	 	Business Continuity and Disaster Recovery Plan
	SCHEDULE J

	 	PCBA Agreement

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