Document:

exv4w1

Exhibit 4.1

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DIRECTOR AND SECRETARY
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	The Corporation will furnish without charge to each stockholder who so requests a statement of the
designations, powers preferences and relative participating, optional or other special rights of
each class of stock or series thereof of the Corporation and the qualifications, limitations or
restrictions of such preferences and/or rights. Such request may be made to the Corporation or the
Transfer Agent.
The following abbreviations, when used in the inscription on the face of this certificate, shall be
construed as though they were written out in full according to applicable laws or regulations:
TEN COM —  as tenants in common UNIF GIFT MIN ACT- Custodian
TENENT —  as tenants by the entireties ‘ : (Cust) (Minor)
JT TEN • —  as joint tenants with right under Uniform Gifts to Minors
of survivorship and not as tenants Act
in common (State)
Additional abbreviations may also be used though not in the above list.
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PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)
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M ATSP C ‘ THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE
FACE OF IM %J I I %s C . THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR
ENLARGEMENT OR ANY CHANGE WHATEVER.
Signature(s) Guaranteed:
THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS,
SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.exv10w25

Exhibit 10.25

[**] indicates that information had been redacted and filed separately pursuant to a confidential
treatment request filed with the Securities and Exchange Commission

MASTER SUPPLY AND ALLIANCE AGREEMENT

BETWEEN

BEL FUSE INC.

AND

AMBIENT CORPORATION

 

 

CONTENTS

	 	 	 	 	 

	1. DEFINITIONS
	 	 	1	 
	2. SCOPE OF AGREEMENT
	 	 	2	 
	3. FORECAST AND ORDER PROCEDURE 
	 	 	3	 
	4. MATERIALS
	 	 	3	 
	5. DELIVERY AND RISK
	 	 	4	 
	6. ACCEPTANCE OF PRODUCTS
	 	 	4	 
	7. RESCHEDULING OF DELIVERIES
	 	 	5	 
	8. CANCELLATION
	 	 	5	 
	9. PRICES
	 	 	6	 
	10. [**]
	 	 	6	 
	11. TITLE
	 	 	7	 
	12. INTELLECTUAL PROPERTY
	 	 	7	 
	13. QUALITY ASSURANCE
	 	 	8	 
	14. CHANGE CONTROL
	 	 	8	 
	15. OBSOLETE AND/OR SURPLUS MATERIAL
	 	 	8	 
	16. BEL WARRANTY
	 	 	9	 
	17. CUSTOMER WARRANTY
	 	 	11	 
	18. INDEMNIFICATION 
	 	 	11	 
	19. CUSTOMER PROPERTY
	 	 	12	 
	20. CONFIDENTIALITY
	 	 	13	 
	21. EXCLUSIONS AND LIMITATION OF LIABILITY
	 	 	13	 
	22. TERM AND TERMINATION
	 	 	14	 
	23. GENERAL
	 	 	14	 

 

 

THIS MASTER SUPPLY AND ALLIANCE AGREEMENT (this “Agreement”) is made effective the
17th day of February, 2009 (the “Effective Date”)

BETWEEN

Bel Fuse Inc. (“Bel”), a New Jersey corporation with an office at 206 Van Vorst Street,
Jersey City, NJ 07302 USA

AND

Ambient
Corporation (the “Customer”), a Delaware corporation with an office at 79 Chapel
Street, Newton, MA 02458.

WHEREAS

     The Customer is a utility communications solutions provider that develops and markets Smart
Grid communications technologies and services which are designed to facilitate a comprehensive
(end-to-end solution) for high speed transmission and reception of Internet Protocol data traffic
for utility applications.

     Bel produces high quality electronic components for the global market and is engaged in the
design, manufacture and sale of products used in networking, telecommunications, high speed data
transmission and consumer electronics.

     The Customer and Bel entered into a Mutual Confidentiality and Non-Disclosure Agreement dated
as of May 7, 2008 (the “NDA”).

     Bel and the Customer desire to enter into a master supply and alliance relationship to support
the Customer’s 2009 business initiatives for its Smart Grid deployments, with Bel willing to
partially fund the 2009 initiative through payments from the Customer on [**] day payment terms.

     Bel is to initially act as a contract manufacturer for the Customer’s products, including its
X3000 node.

     Bel and the Customer intend to expand their relationship with the express purpose of reducing
the manufacturing cost of the Customer’s products.

     NOW, THEREFORE, in consideration of the terms and conditions set forth herein, the parties
hereto agree as follows:

	1.	 	DEFINITONS

     The following words and expressions shall have the following meanings:

	1.1	 	“Affiliate” means, with respect to a party hereto, a corporation that directly or indirectly
controls, is controlled by or is under common control with that party.

 

 

	1.2	 	“Customer Information” shall mean the specification for the relevant Product and all
drawings, documentation, data, software, information and know-how provided by the Customer to
Bel.

	1.3	 	“Customer Tooling” shall mean the tooling, fixtures, appurtenances, test hardware and
software and any other items to be provided by the Customer to Bel or procured or produced by
Bel and paid for by the Customer.

	1.4	 	“Intellectual Property” shall mean any and all of a person’s trademarks, service marks,
tradenames, patents, applications for patents, divisional or continuation, in whole or in
part, patent applications, issued and unexpired reissues, reexaminations, renewals or
extensions of any of the foregoing, copyrights, mask works, trade secrets and other
intellectual property rights recognized by any jurisdiction.

	1.5	 	“Materials” shall mean any components and other materials comprising or comprised in
Products.

	1.6	 	“Order” shall mean any order for Products and/or Services placed by the Customer in
accordance with the terms of this Agreement, which shall be in the form of Exhibit A
attached hereto.

	1.7	 	“Prices” shall mean the prices for the Products and/or Services and/or non recurring
expenditure (including without limitation, tooling and fixtures and other agreed items) agreed
between the parties from time to time. The initial Prices are set forth on Exhibit B
attached hereto.

	1.8	 	“Products” shall mean the items supplied by Bel to the Customer pursuant to the terms of this
Agreement and the relevant Order(s).
	 
	1.9	 	“RMA” shall mean returns material authorization to be provided by Bel to the Customer.

	1.10	 	“Services” shall mean the services provided by Bel to the Customer under this Agreement. The
initial Services are set forth on Exhibit B attached hereto.

	2.	 	SCOPE OF AGREEMENT

	2.1	 	This Agreement will apply to all Orders for Products and Services placed by the Customer
under this Agreement.

	2.2	 	Bel will manufacture and deliver Products and supply Services pursuant to this Agreement,
subject to the Customer first having provided Bel with the specification for the Product,
together with any Customer Tooling, Customer Information and all necessary drawings,
documentation, data, software, and other information of the Customer.

	2.3	 	The Customer will pay the Prices for accepted Products and Services delivered pursuant to
this Agreement.

2

 

	3.	 	FORECAST AND ORDER PROCEDURE

3.1 Each month, the Customer will provide Bel with:

	 	(a)	 	a forecast (the “Forecast”) of its intended purchases of Products for
that month and the following nine to twelve months. The Customer will use its best
efforts to ensure that the Forecast is accurate, but the Forecast will not constitute
an Order;
	 
	 	(b)	 	Order(s) for Products for that month and the following two months to maintain a
minimum of three months of required Product Orders at all times.

	3.2	 	Bel will acknowledge Orders as soon as reasonably practicable but in not more than [**] days
after receipt of an Order. The parties agree that Bel is expected to accept Orders that
comply with the terms of this Agreement and may not reject conforming Orders, except that Bel
may reject Orders after [**].

	3.3	 	Bel will use its best efforts to accept unplanned Orders subject to the Customer’s agreement
to pay any related premium costs and charges incurred by Bel. Such costs and charges must be
negotiated and agreed in writing with the Customer before being incurred and accepted by the
Customer.

	3.4	 	Orders will be in the form of Exhibit A and will include the description and Price
per unit of Product, the quantities ordered, Product revision details, committed delivery
dates and such other information as the parties may agree in writing from time to time.
Orders shall be delivered to Bel by email and facsimile. The parties agree that only an Order
in the form of Exhibit A shall be valid and that an order in other form or containing
any terms and conditions set forth thereon that are not contained in this Agreement or the
form of the Order set forth in Exhibit A shall have no force or effect.

	4.	 	MATERIALS

	4.1	 	The Customer hereby authorizes Bel, and Bel shall be entitled, to order Materials as
necessary to support Orders including without limitation, additional Materials as are
reasonably required to take into account supplier minimum requirements and economic order
quantities. For avoidance of doubt, Bel shall not order Materials based on Forecasts.

	4.2	 	Without limiting Article 4.1 above, where lead times for Materials are at any time longer
than the period covered by Orders set out in Article 3.1(b) above, Bel shall notify the
Customer in writing and shall only be authorized to order such Materials if agreed in advance
in writing by the Customer.

	4.3	 	Where the Customer so directs, Bel will procure Materials from the Customer’s approved vendor
list or preferred supply chain partners listed on Exhibit C attached hereto. To change
such vendors or suppliers, Bel must obtain the Customer’s prior written consent, which will
not be unreasonably withheld.

	4.4	 	Bel agrees to take initial delivery of Customer inventory related to programs transferring to
Bel and ongoing delivery of third party products used in support of the Customer’s programs owned
by any of the Customer’s customers. Bel will be responsible to maintain all such

3

 

Customer inventory and third party products in Bel’s possession and shall bear the risk of loss and
shrinkage related thereto while such inventory and products are in Bel’s possession.
Notwithstanding the foregoing, Bel will only purchase from the Customer and carry on Bel’s books
such Customer inventory equivalent to Orders received from the Customer. Bel agrees to use its
commercially best efforts to consume the Customer inventory from programs transferring to Bel first
before ordering Materials from others. Bel agrees to consume the Customer inventory of Customer’s
customer-required third party products first before ordering Materials from others. Bel and the
Customer jointly agree to [**]. The Customer agrees to transfer Material[**].

	4.5	 	Bel agrees to report to the Customer within one week after fiscal month-end on-hand and
on-order Materials by Customer program (including the Customer inventory and third party
products described in Section 4.4 which will be separately identified from other Materials),
including part number, lead time, quantity and value.

	5.	 	DELIVERY AND RISK

	5.1	 	Except as agreed otherwise, all Products sold to the Customer are delivered EXW Bel factory.
Packing costs included in price.

	5.2	 	The Customer will arrange transportation and specify carrier and transportation instructions.
If the Customer has not done so, Bel shall arrange for transportation on the Customer’s behalf
at the Customer’s cost.

	5.3	 	Bel will use its best efforts to meet agreed delivery dates.

	5.4	 	Risk of loss and damage will pass from Bel to the Customer upon delivery by Bel pursuant to
Article 5.1 above.

	5.5	 	All Products will be packed by Bel in secure packaging as directed or approved by the
Customer.

	5.6	 	Bel is responsible for obtaining:

	 	(a)	 	any necessary export licenses relating to Products and Services; and
	 
	 	(b)	 	any government or regulatory approvals relating to the marketing, sale or use
of Products and maintaining compliance with all applicable laws and regulations in any
jurisdiction from which Products are shipped.

	6.	 	ACCEPTANCE OF PRODUCTS

	6.1	 	The Customer may reject Products which (a) have been damaged prior to delivery by Bel or (b)
do not meet the relevant specification provided by the Customer (“Rejected Products”).

	6.2	 	The Customer will notify Bel in writing of Rejected Products within sixty (60) calendar days
of original delivery and will return Rejected Products at its risk to Bel within a

4

 

	 	 	further thirty (30) calendar days. The Customer requires an RMA from Bel prior to returning
any Product.
	 
	6.3	 	Bel will then at its election either repair, replace or credit the Customer in respect of
Rejected Products. The cost associated with any such repair, replacement or credit will be the
responsibility of Bel. In the case of replacement or credit, title to the Rejected Product
shall pass to Bel on delivery to Bel on a not-for-resale basis.

	6.4	 	In the absence of earlier notification of rejection, the Customer will be deemed to have
accepted Products sixty (60) calendar days after delivery.

	7.	 	RESCHEDULING OF DELIVERIES

	7.1	 	The Customer may reschedule deliveries in advance of agreed delivery dates as follows:

	 	 	 
	Number of days of notice Customer gives
prior to original delivery date	 	Customer may increase or decrease the
units of Products to be delivered by up to:
	 	 	 
	0-30

	 	[**]%
	31-60

	 	[**]%
	61+

	 	[**]%

	 	 	Article 15 shall govern any Materials held by Bel to complete Orders that are not, as a
result of rescheduling permitted by this Section 7.1, expected to be consumed in 16 weeks
following the date of the Customer’s notice of rescheduling.
	 
	7.2	 	Notwithstanding the provisions of 7.1 above, upon the Customer’s request, Bel will use its
best efforts to accelerate delivery dates subject to the Customer agreeing in writing to meet
any increased costs as a result of such acceleration.

	8.	 	CANCELLATION

	8.1	 	If the Customer cancels any Order, or part thereof, provided that Material has been procured
and managed in accordance with Article 4 of this Agreement, the Customer will pay to Bel:

	 	(a)	 	the full Product Price for finished Products;
	 
	 	(b)	 	all costs of obsolete and/or surplus Materials, including WIP, and related
handling charges determined in accordance with Article 15 of this Agreement together
with all amounts due pursuant to Article 4.1; and
	 
	 	(c)	 	[**]
	 
	 	[**]

	8.2	 	Subject to the Customer’s rights under Article 6, if the Customer refuses or fails to accept
any delivery made by Bel pursuant to any Order, such Order (or the relevant part thereof) may,
at Bel’s option, be deemed to have been cancelled by the Customer.

5

 

	9.	 	PRICES

	9.1	 	Prices will be subject to review by the parties on a [**] basis (and at such other times as
may be agreed) at a Price review meeting to be arranged by the authorized representative of
the parties.

	9.2	 	Changes to Prices, and the manner and timing of their implementations, will be agreed by the
parties on a fair and reasonable basis at such review meeting.
	 
	9.3	 	In any event

	 	(a) the Customer will be responsible for any increased costs of procuring Materials and
will review with Bel on a [**] basis the opportunity for decreasing cost of procuring
materials resulting in cost savings to the Ambient product(s). Said costs savings, if
realized, will result in a sharing of benefits between the parties as mutually agreed;
and
	 
	 	[**]

	9.4	 	Taxes
	 
	 	 	The amount of any present sales, use, excise or other similar tax applicable to the Products
not measured by the income of Bel shall be paid by the Customer or, in lieu thereof, the
Customer shall deliver to Bel a tax exemption certificate acceptable to the taxing
authority. Any taxes to be paid by the Customer shall be separately stated on Bel’s
invoice.
	 
	9.5	 	Invoicing and Payment
	 
	 	 	Bel shall invoice the Customer for each shipment of Products on or after the date that the
shipment is delivered to the Customer. Each invoice shall contain the following
information: the Customer’s order number, the Customer’s part number, a description of the
Products delivered, the revision level of the Products, quantities and unit prices. The
total Purchase Price for each shipment shall be due and payable within [**] days of
shipment, or as provided in Section 10 below.

	10.	 	[**]

	11.	 	TITLE

11.1 Title and interest to Products will pass to the Customer upon delivery.

	11.2	 	Payment of Prices for Services does not confer any rights in or title to the subject matter
of the Service which shall remain the absolute property of Bel.

	12.	 	INTELLECTUAL PROPERTY

	12.1	 	All existing Intellectual Property owned by or licensed to the Customer by other third
parties will continue to be owned by the Customer and, accordingly, the Customer hereby grants
Bel a non-exclusive, royalty-free license during the term of this Agreement

6

 

	 	 	to use such of it as may be necessary for Bel to perform its obligations under this
Agreement. With respect to any Intellectual Property licensed to the Customer by other third
parties, the Customer warrants that such license is in good standing and includes all
necessary rights of sub-licensing. Notwithstanding the foregoing, nothing contained herein
or in any Order shall be construed as transferring to Bel (whether directly or by
implication, estoppel or otherwise) any ownership under any Intellectual Property of the
Customer or any of its Affiliates, and Bel shall have no ownership rights in, and the
Customer or its Affiliates, as the case may be, shall retain exclusive ownership of, all
Intellectual Property of the Customer and its Affiliates.
	 
	12.2	 	All existing Intellectual Property owned by or licensed to Bel by third parties (other than
the Customer hereunder) will continue to be owned by Bel. Nothing contained herein or in any
Order shall be construed as transferring to the Customer (whether directly or by implication,
estoppel or otherwise) any ownership under any Intellectual Property of Bel or any of its
Affiliates, and the Customer shall have no ownership rights in, and Bel or its Affiliates, as
the case may be, shall retain exclusive ownership of, all Intellectual Property of Bel and its
Affiliates.

	12.3	 	Any Intellectual Property derived from the Customer’s Intellectual Property arising in the
course of Bel’s performance of the Agreement will be owned by the Customer. Any Intellectual
Property derived from Bel’s Intellectual Property arising in the course of Bel’s performance
of the Agreement will be owned by Bel. Bel will promptly assign to the Customer Bel’s entire
right, title and interest in and to all such developments, improvements and inventions
relating to the Customer’s Intellectual Property, and in and to all applications for patents
therefor, and patents therefor, and patents issuing thereon, of the United States and of all
foreign countries, and for this purpose Bel will, at the Customer’s expense, whenever
requested to do so, execute any and all applications for patents, assignments or other papers,
and do all other things deemed necessary or desirable by the Customer to carry out the intent
of the foregoing.

	12.4	 	The parties acknowledge that the NDA shall continue in force and effect and apply to this
Agreement and the activities contemplated herein.

	13.	 	QUALITY ASSURANCE

	13.1	 	Bel will maintain quality assurance systems for the control of Material quality, processing,
assembly, testing, packaging and shipping in accordance with its usual policies and practices
or as otherwise specified on Exhibit B. Bel agrees to meet reporting requirements such
as process yields, failure description, and corrective action, as specified by the Customer.

	13.2	 	Bel will perform its normal test procedures relating to Products and Services or those
otherwise specified on Exhibit B.

	13.3	 	Either party may during normal business hours and following reasonable notice and subject to
the other party’s normal security requirements, review the other party’s facilities and
quality control procedures as reasonably necessary for the first party to satisfy itself of
the other party’s compliance with its obligations under this Agreement.

7

 

	13.4	 	The parties will endeavor to meet quarterly to discuss and resolve any issues which may have
arisen including those relating to quality, performance, engineering changes, obsolescence or
surpluses.

	14.	 	CHANGE CONTROL

	14.1	 	Bel or the Customer may at any time propose changes to the relevant specification of the
Products by a written engineering change notice (“ECN”).

	14.2	 	The recipient of the ECN will use all reasonable efforts to provide a detailed response
within [**] of receipt.

	14.3	 	Bel will advise the Customer of the likely impact of an ECN (including but not limited to
scheduling and Prices) on the provisions of any relevant Order.

	14.4	 	Neither party will unreasonably withhold or delay agreement to an ECN, and the parties will
endeavor to agree and implement at the earliest opportunity ECN’s relating to personal and
product safety.

	14.5	 	Any obsolete and/or surplus Materials resulting from an ECN will be dealt with in accordance
with Article 15 below.

	14.6	 	All costs of implementing ECN’s (including without limitation premium costs of Materials,
Material handling charges, process and tooling charges, administrative charges, engineering
charges, and evaluation and testing costs) will be the responsibility of the Customer, except
for ECN’s initiated by Bel solely to improve its manufacturing processes.

	15.	 	OBSOLETE AND/OR SURPLUS MATERIAL

	15.1	 	When all Material is for any reason at any time rendered obsolete and/or surplus to Customer
requirements and that Material was ordered by Bel against an Order pursuant to Article 4
above, Bel will:

	 	(a)	 	provide to the Customer as soon as reasonably practicable following the date of
the event causing the obsolescence/surplus (the “Obsolescence Date”) a notice
of the potential cost of such obsolescence or surplus including relevant handling
charges; and
	 
	 	(b)	 	for a period of [**] from the Obsolescence Date, use its best efforts to:
	 
	 	(i)	 	Cancel outstanding orders for such Materials; or
	 
	 	(ii)	 	Sell such Materials back to the original supplier or to a third party on such
terms as Bel may determine at its discretion but not for less than [**]% of the cost of
the Materials to Bel without the Customer’s prior written consent; or
	 
	 	(iii)	 	Use excess/uncancellable Materials for the manufacture of other Products.

8

 

	15.2	 	After such [**] period:

	 	(a)	 	Bel will deliver to the Customer a detailed report of all remaining obsolete
and/or surplus Materials then held by Bel; and
	 
	 	(b)	 	Following review and agreement with the Customer, Bel shall be entitled to
invoice the Customer for the full cost of all remaining obsolete and/or surplus
Materials then held by Bel and, if the Customer has agreed in writing in advance to
Bel’s resale of such Material at less than the percentage of cost specified in Section
15.1(b)(iii), any price variance incurred by Bel in connection with the resale of such
Material and, if the Customer has agreed in writing in advance to such handling
charges, Bel’s reasonable handling charges in respect of all obsolete and/or surplus
materials originally made obsolete and/or surplus. Such invoice shall be paid by the
Customer in US Dollars without set off or deduction within [**] days of the date of
invoice.

	16.	 	BEL WARRANTY
	 
	16.1	 	Bel warrants that it will without charge repair or replace, as Bel may elect, any Products
which are defective as a result of a failure in Materials or Bel’s workmanship provided that:

	 	(a)	 	The Customer notifies Bel in writing within [**] after discovery of the defect;
and
	 
	 	(b)	 	Such defective Product has been returned prepaid to Bel’s designated repair
location within [**] after original delivery by Bel or [**] after original delivery by
Bel in cases where the Customer has a [**] warranty obligation with its customers
(which applicable period shall not be extended by the repair or replacement of
Product).

	 	 	The Customer requires a return material authorization (RMA) from Bel prior to returning any
Products. All returned Products shall include documentation describing the nature of the
defect, how it was discovered and under what conditions it occurred. Bel shall replace or
repair rejected Products within [**] of receipt of the rejected Product; provided that Bel
shall have an additional [**] if it must manufacture the rejected Product to effect a
replacement.
	 
	16.2	 	The Customer will pay for the return of Products to Bel’s designated premises. Bel will pay
for the redelivery to the Customer’s premises in Massachusetts of all Products which are
defective under Article 16.1 above. In respect of any Products which are found by Bel not to
be so defective, the Customer will pay to Bel all redelivery costs. In the case of Product
replacement, title to replaced Product will pass to Bel on delivery, on a not-for-resale
basis; and title to replacement Product will pass to the Customer on delivery to the Customer.
	 
	16.3	 	The above warranties will not apply to

	 	(a)	 	Products which that have been misused, modified, damaged, placed in an
unsuitable physical or operating environment or maintained improperly or to any
Products which have been subjected to any repair not authorized in writing in advance
by Bel;

9

 

	 	(b)	 	Any defect caused by the Customer or a third party or by an error or omission
or design or default in any Customer Information or in any other drawings,
documentation, data, software, information, know-how or Materials provided or specified
by the Customer;
	 
	 	(c)	 	Prototypes and pre-production or pilot versions of Products which will be
supplied “as is” without warranty of any kind; or
	 
	 	(d)	 	Products for which Bel has not performed the standard inspection and test
procedure at the request of the Customer.

	16.4	 	Manufacturing defects and Material failures are the responsibility of Bel. Any epidemic
failures (representing [**]% of any given lot/shipment) identified as originating from the Bel
manufacturing process or the Materials (except materials supplied directly by Ambient), or
Bel’s handling or packaging, will require an exception-based, escalation response by Bel to
include field site inspection test and/or rework, and/or highly accelerated Product
replacement and shipment at no additional cost to the Customer.
	 
	16.5	 	THIS ARTICLE 16 SETS OUT BEL’S SOLE OBLIGATION AND LIABILITY, AND THE CUSTOMER’S EXCLUSIVE
REMEDIES, FOR CLAIMS BASED ON DEFECTS IN OR FAILURE OF ANY PRODUCT OR SERVICE OR THE SUBJECT
MATTER OF ANY SERVICE AND REPLACES ALL OTHER WARRANTIES AND CONDITIONS EXPRESS OR IMPLIED,
INCLUDING BUT NOT LIMITIED TO IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE PROVIDED ALWAYS THAT BEL DOES NOT EXCLUDE OR LIMIT ITS LIABILITY FOR
DEATH OR PERSONAL INJURY RESULTING FROM ITS NEGLIGENCE NOR LIABILITY FOR BREACH OF ANY TERM
IMPLIED BY STATUTE TO THE EXTENT THAT SUCH LIABILITIES CANNOT BY LAW BE LIMITED OR EXCLUDED.
	 
	17.	 	CUSTOMER WARRANTY
	 
	17.1	 	The Customer warrants the Customer Information and the Customer Tooling and any other items
or information supplied by the Customer are accurate and contain all items and information of
the Customer necessary for Bel to manufacture and deliver the Products and Services pursuant
to this Agreement.
	 
	17.2	 	Bel will notify the Customer of any manufacturing problems which it encounters and believes
are related to the Product design of any Customer Information or Customer Tooling. The parties
will jointly determine whether such manufacturing problems are attributable to the Product
design or any Customer Information or Customer Tooling. Where such problems are so
attributable, the Customer will be responsible for all costs incurred by Bel to correct such
problems. Bel will not implement any changes to the Product design or any Customer Information
or Customer Tooling without the Customer’s prior written approval. Where any such changes
result in the delay of any scheduled delivery date for Product, Bel will have no liability for
such delay, and Customer may not cancel any orders for Products affected thereby.
	 
	18.	 	INDEMNIFICATION

10

 

	18.1	 	(a) If suit is brought against Bel alleging that its use of any Customer Intellectual
Property in producing Product in accordance with the Customer’s specifications infringes any
United States patent because of such use, the Customer shall, at its own expense, defend and
control such suit and pay any award of damages against Bel, provided Bel notifies the Customer
promptly of the filing of such suit and gives the Customer complete control of the same. The
Customer shall not be liable in any respect except as aforesaid, including without limitation,
for any claim of infringement settled by Bel without the Customer’s prior written consent.
	 
		 	(b) If suit is brought against the Customer alleging that Product infringes any United
States patent other than by reason of use of any Customer Intellectual Property in producing
Product in accordance with the Customer specifications, Bel shall, at its own expense,
defend and control such suit and pay any award of damages against the Customer, provided the
Customer notifies Bel promptly of the filing of such suit and gives Bel complete control of
the same. Bel shall not be liable in any respect except as aforesaid, including without
limitation, for any claim of infringement settled by the Customer without Bel’s prior
written consent. If a final injunction shall be obtained against the Customer by reason of
such infringement, or if in Bel’s opinion, upon advice of legal counsel, a Product is likely
to become the subject of a claim of such infringement, Bel may, at its option and at its
expense (i) procure for the Customer the right to continue using the Product; or, (ii)
replace or modify the same so that it becomes non-infringing.
	 
		 	(c) Any and all settlements related to matters described in this Section 18.1 shall be
subject to the prior written approval of Bel’s President or General Counsel with respect to
Bel and the prior written approval of the Customer’s President with respect to the Customer.
	 
		 	(d) THE FOREGOING STATES THE ENTIRE LIABILITY OF THE PARTIES TO EACH OTHER CONCERNING
INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS.
	 
	18.2	 	(a) Bel will indemnify, save harmless and defend the Customer, its affiliates and customers
from any and all claims, actions, losses, expenses, costs or damages (including, reasonable
legal fees and expenses) (collectively, “Losses”) which the Customer, its affiliates
and customers may suffer or incur as a result of (i) any negligent act or omission or willful
misconduct of Bel, its employees, representatives, agents or subcontractors relating to this
Agreement; or (ii) any breach of Bel’s representations, warranties or obligations under this
Agreement.
	 
		 	(b) Bel will have no liability pursuant to Section 18.2(a) to the extent the Losses arise
solely and directly due to (i) the use of goods by the Customer in a manner for which they
were not designed (unless such use was agreed to in advance by Bel); or (ii) the negligence of
the Customer, its employees, agents or subcontractors.
	 
		 	(c) Customer shall promptly notify Bel of any claim for which the Customer believes it is
entitled to indemnification (provided that the Customer’s failure to provide such notice will
relieve Bel of its indemnification obligations only if and to the extent that such failure
actually prejudices Bel’s ability to defend the claim.) Bel will defend the Customer against
any proceeding or claim described and keep the Customer apprised of all major

11

 

		 	developments. The Customer may participate in any such proceedings, at its expense. The
Customer will permit Bel to control, in a manner not adverse to Customer, the defense of any
such claim; provided that any and all settlements or consents to judgment related to matters
described in this Section 18.2 shall be subject to the prior written approval of Bel’s
President or General Counsel with respect to Bel and the prior written approval of the
Customer’s President with respect to the Customer.

	19.	 	CUSTOMER PROPERTY
	 
	19.1	 	All Customer Information and Customer Tooling may be used by Bel during the term of this
Agreement as required by Bel for the purposes of this Agreement.
	 
	19.2	 	All Customer information and all Customer Tooling will remain the Customer’s property and
will be treated by Bel with the same care as it treats its own property of a similar nature.
	 
	19.3	 	The costs of maintenance, calibration and repair of Customer Tooling shall at all times be
the responsibility of the Customer.
	 
	20.	 	CONFIDENTIALITY
	 
	20.1	 	Nothing in this Agreement gives either party a right to use the other party’s name, trade
mark(s), or trade name(s) or to refer to, or disclose, the existence of this Agreement or any
Order or any terms and conditions of this Agreement or any Order, whether directly or
indirectly in connection with any marketing or other activities without the other party’s
prior written consent. Notwithstanding the foregoing, Bel acknowledges that upon execution of
this Agreement, the Customer will issue a press release. Additionally the Customer shall be
required to file a Report on Form 8-K upon the execution of this Agreement and a copy of this
Agreement as an exhibit no later than its next periodic report, and, in connection with such
issuance and filings, shall be permitted to use Bel’s name and to file a copy of this
Agreement. The Customer shall seek confidential treatment with respect to the portions of
this Agreement containing trade secrets.
	 
	21.	 	EXCLUSIONS AND LIMITATION OF LIABILITY
	 
	21.1	 	Bel does not exclude or limit its liability for death or personal injury resulting from its
negligence nor liability for breach of any term implied by statute to the extent that such
liabilities cannot by law be limited or excluded.
	 
	21.2	 	Subject only to Article 18 and Article 21.1 above, under no circumstances will a party have
any liability in respect of this Agreement, whether in contract or for negligence or otherwise
and whether related to any single event or series of connected events, for any of the
following:

     (a) any liability in excess of:

	 	(i)	 	in case of damage to loss of tangible property, the value of such
property; and

12

 

	 	(ii)	 	in any event, and in respect of any other liability, the total of
[**] (whichever is greater).

		 	(b) any liability for any incidental, indirect or consequential damages or loss of
business, loss of records or data, loss of use, loss of profits, revenue or anticipated
savings or other economic loss whether or not Bel was informed or was aware of the
possibility of such loss.

	21.3	 	Neither party may bring an action under this Agreement more than two (2) years after the
cause of action arose; provided such limitation shall not apply to third party claims brought
against a party for which it is entitled to indemnification under this Agreement.
	 
	21.4	 	Bel shall have no liability to the Customer for any failure to perform any obligation under
this Agreement or any Order due to the act or omission of the Customer or any supplier
designated by the Customer.
	 
	22.	 	TERM AND TERMINATION
	 
	22.1	 	This Agreement is effective from the Effective Date and continues until terminated in
accordance with this Article 22.
	 
	22.2	 	Either party may terminate any Order and/or this Agreement after [**] years from the
Effective Date or the Customer’s purchase of a minimum of a cumulative [**] units of Products,
whichever first occurs, by giving to the other party six months prior written notice at any
time. In the event of termination pursuant to this Article 22.2:

	 	(a)	 	termination of any Order or this Agreement will not prejudice accrued rights
and
liabilities (including payment of Prices for Product delivered) of either party; and
	 
	 	(b)	 	on the termination or other discharge of this Agreement Bel will deliver to the
Customer at the Customer’s expense and risk all Customer information and Customer
Tooling on an as is basis.

	22.3	 	Either party may terminate any Order and/or this Agreement:

	 	(a)	 	if the other party commits a material breach of any Order or this Agreement and
fails to remedy the breach within thirty (30) days of written notice requiring it to do
so; or
	 
	 	(b)	 	immediately if the other party fails to pay its debts generally as they become
due, makes an assignment for the benefit of creditors, seeks relief under any
bankruptcy, insolvency or similar law, is involved in any involuntary proceeding under
such laws, or if a receiver, manager, liquidator, trustee in bankruptcy or other officer
with similar powers is appointed over all or a substantial part of the assets of that
party.

	 	 	 	In any such case, on termination, the terminating party shall have no further obligations to
the other party except to make payment of Prices for Product delivered prior to the date of
termination, less any amount owing to the terminating party.

13

 

	22.4	 	The terms of Article 8 will apply to any Orders cancelled as a result of termination pursuant
to this Article 22, and the terms of Article 15 will apply to any Material rendered obsolete
or surplus by such cancellation. In addition, Articles 18 and 21 shall survive termination of
this Agreement or any Order.
	 
	23.	 	GENERAL
	 
	23.1	 	Resale, import and export. The Customer will comply with all applicable laws and regulations
and will obtain all necessary licenses and consents for the resale, import or export of
Products (except as provided in 5.6 above) under the laws and regulations of any relevant
jurisdiction.
	 
	23.2	 	Effective terms and precedence.

	 	(a)	 	This Agreement, together will all Orders, constitutes the entire agreement between
the parties in respect of the subject matter hereof and supersedes and excludes all other
representations, promises, whether oral or written.
	 
	 	(b)	 	Any standard terms and conditions set out in any order form other than the Order form
attached as Exhibit A hereto will be without effect.
	 
	 	(c)	 	Any rights or obligations under this Agreement which by their nature continue after
termination will remain in effect until they are completed.
	 
	 	(d)	 	If there is any conflict or inconsistency between the terms of any Order and the
terms of this Agreement, then the terms of this Agreement will prevail over the Order.
Furthermore, to the extent there is any conflict or inconsistency between the terms set
forth on Exhibit B hereto and any other provisions of this Agreement, the terms
set forth on Exhibit B shall prevail.

	23.3	 	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 will not affect any other
provision of this Agreement, and this Agreement will be construed as if such invalid or
unenforceable provision or part thereof had not been contained therein.
	 
	23.4	 	Variations. No purported variation or amendment of this Agreement will be valid unless made
or confirmed in writing by a duly authorized representative of each party.
	 
	23.5	 	Waiver. The waiver of any term, condition or provision of this Agreement must be in writing
and signed by an authorized representative of the waiving party. Any such waiver will not be
construed as a waiver of any other term, condition or provision except as provided in writing,
nor a waiver of any subsequent breach of the same term, condition or provision.
	 
	23.6	 	Force majeure. Neither party will be liable for any delay in performing or for failing to
perform obligations (other than payment obligations) resulting from acts of God, catastrophic
weather, fire, explosions, floods, strike, work stoppages, slow-downs or

14

 

		 	other industrial disputes, accidents, riots or civil disturbances, act of government, delays
by suppliers or Material shortages or from any cause whatsoever beyond its reasonable
control.
	 
	23.7	 	Assignment.

	 	(a)	 	Neither party may assign this Agreement or any Order or any part thereof
without the written consent of the other except that Bel may assign this Agreement
and/or any Order or any parts(s) of this Agreement to any of its Affiliates or to any
person who acquires the whole or any part of Bel’s business.
	 
	 	(b)	 	The expressions “Bel” and the “Customer” include their respective successors
and permitted assigns where the context admits.

	23.8	 	Relationship of the parties. The relationship of Bel and the Customer as established under
this Agreement will be and at all times remain one of independent contractors, and neither
party will at any time nor in any way represent itself as being a dealer, agent or other
representative of the other party or as having authority to assume or create obligations or
otherwise act in any manner on behalf of the other party.
	 
	23.9	 	Headings. The headings in this Agreement are inserted for convenience only and do not
constitute a part of this Agreement nor are they to be referred to in its interpretation.
	 
	23.10	 	Counterparts. This Agreement may be executed in one or more counterparts (including those
delivered by facsimile or other electronic means), each of which shall be considered an
original, but all of which taken together shall constitute one and the same agreement.

[Signature page follows.]

15

 

THIS MASTER SUPPLY AND ALLIANCE AGREEMENT IS EXECUTED BY THE DULY AUTHORIZED REPRESENTATIVES OF THE
PARTIES AS OF THE DATE FIRST SET FORTH ABOVE:

	 	 	 	 	 
	 	“CUSTOMER”

AMBIENT CORPORATION

 	 
	 	By:  	/s/ John J. Joyce
 	 
	 	 	Name:  	John J. Joyce  	 
	 	 	Title:  	President 	 
	 
	 	“BEL”

BEL FUSE INC.

 	 
	 	By:  	/s/ Colin W. Dunn
 	 
	 	 	Name:  	Colin W. Dunn  	 
	 	 	Title:  	Vice President Finance 	 
	 

 

EXHIBIT A

FORM OF PURCHASE ORDER

	 	 	 	 	 	 	 
	Ambient Corporation	 	 	 	PURCHASE ORDER
	79 Chapel Street	 	[Ambient logo]	 	2703481
	Newton, MA 02458
	 	 	 	 	 	 
	P: 617-614-6718

	 	AMBIENT®	 	ORDER DATE 	 	VEND NO. 
	F: 617-332-0024

	 	communications for a new world	 	02/10/09 	 	BEL001 

	 	 	 
	BEL FUSE

	 	Ship to: Ambient Corporation
	206 Van Vorst Street

	 	               79 Chapel Street
	Jersey City, NJ 07302

	 	               Newton, MA 02458
	 
	 	 
	Contact:  [**]
	 	 
	Phone:     [**]
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DUE DATE	 	REQUESTED BY	 	 	 	 	 	 	 	TERMS
	02/10/09
 	 	-No
Sales Employee-
 	 	SHIP VIA
 	 	F.O.B.
 	 	[**]
 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	#
	 	ITEM NO.
	 	VENDOR ITEM NO.

	 	UOM
	 	DEL. DATE
	 	QTY ORDER
	 	UNIT PRICE
	 	EXTENSION

	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	REMARKS
	 	 	 	 

	 	 	 	 	 	 	 	TOTAL
	 	 	0.00	 

PAGE 1

 

 

EXHIBIT B

PRICES, PRODUCTS AND SERVICES

Manufacturing Services

	 	•	 	Printed circuit board (PCB) assembly and test
	 
	 	•	 	Systems final assembly and test
	 
	 	•	 	Materials procurement and management
	 
	 	•	 	Fulfillment services (direct customer shipment)
	 
	 	•	 	Turnkey based prototyping and new product introductions (NPI)
	 
	 	•	 	To be expanded to include full repair depot operations

Metrics:

	 	•	 	On time delivery

	 	•	 	Committed orders at [**]% On-Time within +/- 2 days
	 
	 	•	 	Expedited orders with Best Efforts at [**]% to committed delivery

	 	•	 	Quality as measured by actual customer results — manufacturing defects ONLY

	 	•	 	Out-of-box failures @ <[**]%
	 
	 	•	 	90 day warranty failure/return rate @ <[**]%
	 
	 	•	 	12 month warranty failure/return rate @ <[**]%

	 	•	 	Commitment to agility & responsiveness in support of the Customer business and its
customers’ needs

	 	•	 	Best efforts including use of overtime in response to the Customer’s customers’ requests
	 
	 	•	 	All efforts basis to recover missed schedules at BEL expense

	 	•	 	Timely implementation of ECN/ECO changes based on impact on the Customer

	 	•	 	Response, analysis and implementation aligned to the Customer’s urgency

	 	•	 	Cost

	 	•	 	Product cost performance in achieving both material & labor savings
	 
	 	•	 	All cost not in standard (CNIS) within reasonable expectations

Service Elements

	 	•	 	Orders and Forecast

	 	•	 	The Customer will use best efforts

	 	•	 	To provide 12 month rolling forecast of production requirements
	 
	 	•	 	To provide Orders of requirements within [**] day delivery expectation

	 	•	 	BEL will only execute materials procurement aligned to the Customer Orders
	 
	 	•	 	BEL agrees to build products aligned to the Customer delivery
expectations — no build ahead without advanced notice to and review and acceptance
by the Customer
	 
	 	•	 	Order scheduling and rescheduling as outlined within the Agreement

	 	•	 	Materials and Supply-Chain Management

 

 

	 	•	 	Procurement following the Customer defined AVL or supply-chain
partners — must ensure local, U.S. support to the Customer development initiatives
	 
	 	•	 	Order policies managed to ABC levels to minimize the Customer’s exposure and risk
	 
	 	•	 	Extend global procurement capabilities to achieve “best-in-class” service & pricing

	 	•	 	NPI

	 	•	 	Collaboratively support quick turn [**]  — [**]
cycles along with system level build and testing
	 
	 	•	 	The Customer to provide direct support of unique materials in conjunction with BEL efforts
	 
	 	•	 	BEL to directly support evolving test requirements including [**]
	 
	 	•	 	BEL will provide collaborative support with early NPI participation to achieve [**]

	 	•	 	Manufacturing and Test Engineering

	 	•	 	The Customer and BEL agree to develop cost effective solutions to
achieve volume, quality and cost targets
	 
	 	•	 	The Customer intends to leverage BEL test engineering services in
optimizing test for volume production

	 	•	 	ICT
	 
	 	•	 	Functional testing — both PCB’s and systems
	 
	 	•	 	Thermal and power cycling of both PCB’s and systems
	 
	 	•	 	Fixture design and implementation

	 	•	 	Quality

	 	•	 	[**]
	 
	 	•	 	Provide weekly, monthly & quarterly reporting of [**]
	 
	 	•	 	Provide [**] support to correct any epidemic failures (those
exceeding [**]% of lots shipped) involving manufacturing or Materials
used in the Products
	 
	 	•	 	BEL will implement formal corrective actions to address major quality
deficiencies and commit to active, continuous improvement program
	 
	 	•	 	Ensure materials used in the production of the Products conform to the
Customer and OEM provided specifications

	 	•	 	Cost and Pricing

	 	•	 	BEL will manage all materials and labor to agreed upon standard cost
	 
	 	•	 	All purchase price variance (PPV) and premium labor cost requires
notification to and review and acceptance by the Customer in advance
	 
	 	•	 	All CNIS, PPV, excess and obsolete materials, exception based cost and
non-recurring expenses require notification to and review and acceptance by the
Customer in advance

	 	•	 	Transactional Elements

	 	•	 	All shipments to include either the Customer provided packing list or
BEL packing list with the Customer nomenclature and include Product serial and
reference numbers
	 
	 	•	 	Shipments must include packing list, commercial invoice and all export
documentation
	 
	 	•	 	All shipping documents to be physically attached to the shipment with
electronic copies provided directly to the Customer in a timely manner

	 	•	 	Repair Center Operations

	 	•	 	Will require [**], full service repair and upgrade depot capabilities
	 
	 	•	 	Details to be addressed as a future initiative

2

 

Project and Program Management

	 	•	 	Each party will assign a project manager and identify a project team representing
key manufacturing functions, including planning and materials, manufacturing and test
engineering and quality management

	 	•	 	Program management approach aligned toward:

	 	•	 	Weekly project level meetings — action and results focused across all disciplines
	 
	 	•	 	Monthly program level performance checks — issue resolution
	 
	 	•	 	Formalized quarterly business reviews addressing all metrics and program status

	 	•	 	Quarterly pricing and cost reviews addressing commodity management — process
opportunities and markups aligned to business volumes

Pricing:

	 	•	 	Agree initially that pricing will be [**], with baseline pricing
established at [**]
	 
	 	•	 	Will collaborate to achieve on-going cost/pricing reductions aligned to volume

3

 

EXHIBIT C

APPROVED VENDORS AND PREFERRED SUPPLY CHAIN PARTNERS

AMBIENT APPROVED VENDORS:

Approved Vendors are contained within Ambient’s data and documentation control system, Agile, and
incorporated with full revisions and release control. As a strategic partner, Ambient has extended
BEL direct electronic access for all [**].

PREFERRED SUPPLY-CHAIN PARTNERS:

Ambient requires, as part of this Agreement, local, US, access and support from technology
companies and has identified [**] as a preferred distributor partner. [**] should be considered for
all franchised components given overall market competitiveness with cost, quality and availability.

Ambient may, as mutually appropriate, identify additional supply-chain partners and will work with
BEL in integrating them within the program.

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