Document:

Exhibit 10.9

 

EMPLOYMENT AGREEMENT

 

Duly made and executed on this 27th day of June, 2011

 

This Employment Agreement (this “Agreement”) is entered by and between Objet Ltd., with offices at 2 Holtzman Street, Science Park, Rehovot 76124, Israel (the “Company”); and

 

on the first part

 

Ilan Levin, I.D. No. 310064969, residing at 46 Menucha Ve’Nachala Street, Rehovot, Israel (the “IL”)

 

on the second part

 

WHEREAS                         the IL has served since June 2000 as a member of the Company’s Board of Directors; and

 

WHEREAS                         IL has been, and continues to be, entitled to compensation as a member of the Company’s Board of Directors, in accordance with a resolution of the General Meeting of the Company dated May 31, 2010, in the amount of $15,000 per month of continued service as a member of the Board irrespective of this Agreement; and

 

WHERAS                                  in accordance with a resolution of the Board of Directors dated February 21, 2011 and of the General Meeting of the Company dated June 9th, 2011, IL has been appointed to the office of President of the Company, in addition to and irrespective of his continued service as a member of the Board; and

 

WHERAS                                  the Company desires to employ IL as President of the Company, in addition to and irrespective of his continued service as a member of the Board of Directors of the Company, pursuant to the terms and conditions set forth herein and IL desires to enter into such employment; and

 

NOW, THEREFORE, the parties hereto agree as follows:

 

1.                            EMPLOYMENT

 

1.1.                           IL’s employment in the position of the Company’s President shall commence on June 1, 2011, (the “Commencement Date”). . IL undertakes to perform such duties and responsibilities as may be assigned to him by the Company’s Board of Directors from time to time and shall be subordinated to the Company’s Board of Directors.

 

1.2.                           This Agreement may be terminated by either party at any time by giving the other party hereto three (3) months’ prior written notice of such termination (the “Notice Period”).

 

 

1.3.                           Notwithstanding anything to the contrary in Section 1.3 above, the Company may immediately cease IL’s employment and may shorten all or part of the Notice Period, regardless of whether notice of termination was given by the Company or by IL; provided, however, that in such event IL shall be entitled to receive such Salary, as such term is defined in Section 1 of Appendix A attached hereto, during the Notice Period as if IL were to continue to be employed by the Company for the duration of such Notice Period.

 

1.4.                           In the event of resignation by IL, in which IL did not give the Company prior written notice, the Company may deduct from any amount owed to IL, an amount equal to IL’s Salary for the time he did not work during the required Notice Period, as a pre-accepted and undisputed compensation therefor. Without derogating from the preceding sentence, the Company reserves its right to sue IL for any damages suffered by the Company as a result of IL’s failure to give the Company prior written notice in accordance with Section 1.3 above.

 

1.5.                           Notwithstanding anything to the contrary herein, the Company may terminate IL’s employment for Cause without advance notice and without derogating from any remedy to which the Company may be entitled. A termination for “Cause” is a termination due to (i) IL’s embezzlement of funds of the Company; or (ii) IL’s material breach of the terms and conditions of this Agreement; or (iii) IL being involved in an act which constitutes a breach of trust between himself and the Company or constitutes a breach of discipline; or (iv) IL’s conduct has caused grave injury to the Company, monetarily or otherwise.

 

1.6.                           IL shall have no right for a lien on any of the Company’s assets, equipment or any other material including car and cellular phone if applicable and including information or Confidential Information as defined in Exhibit B attached to this Agreement (hereinafter the “Company’s Equipment”) in its possession. IL shall return to the Company all of the Company’s Equipment in its possession no later than the day of termination of employee-employer relationship and prior to any vacation of more than 30 days (including vacation due to pregnancy or prior notice) or within 7 days after the Company’s demand.

 

2.                            SPECIAL AGREEMENT

 

It is agreed between the parties that this Agreement is a personal agreement, and that the position IL is to hold within the Company is an executive position which requires a special measure of personal trust, as such terms are defined in the Working Hours and Rest Law 5711 - 1951, as amended (the “Law”). The provisions of any collective bargaining agreement which exist or shall exist do not, and will not, apply to the employment of IL, whether such agreement was signed among the government, the General Federation of Labor and Employers organizations, or any of such parties, or whether signed by others, in relation to the field or fields of the business of the Company or in relation to the position held by or the profession of IL. Thus, IL may be required, from time to time and according to the work load demanded of him, to work beyond the regular working hours and IL shall not be entitled to any further compensation other than as specified in this Agreement and the Appendixes hereto.

 

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3.                            COMPENSATION

 

In consideration for the performance of his duties solely under this Agreement, IL shall be entitled to the compensation set forth in Appendix A attached hereto.

 

4.                            NON DISCLOSURE, COMPETITIVE ACTIVITY AND OWNERSHIP OF INVENTIONS

 

Simultaneously with the signing of this Agreement IL shall sign the Non-Disclosure, Unfair Competition and Ownership of Inventions undertaking in favor of the Company and any subsidiary and parent company of the Company, attached hereto as Appendix B.

 

5.                            REPRESENTATIONS AND UNDERTAKINGS

 

IL represents and undertakes all of the following:

 

5.1.                           There are no other undertakings or agreements preventing him from committing himself in accordance with this Agreement and performing his obligations hereunder.

 

5.2.                           IL does not suffer from any health disability which prevents him from performing his obligations according to this Agreement.

 

5.3.                           IL has the ability, knowledge and qualifications needed to perform his obligations according to this Agreement.

 

5.4.                           IL shall inform the Company, immediately upon becoming aware, of every matter in which he or his immediate family has a personal interest and which might give rise to a conflict of interest with his duties under the terms of his employment.

 

5.5.                           IL shall not receive any payment and/or benefit from any third party, directly or indirectly in connection with his employment. In the event IL breaches this Sub-section, without derogating from any of the Company’s right by law or contract, such benefit or payment shall become the sole property of the Company and the Company may set-off such amount from any sums due to IL.

 

5.6.                           In carrying out his duties under this Agreement, IL shall not make any representations or give any guarantees on behalf of the Company, except as expressly and in advance authorized so to do.

 

5.7.                           IL acknowledges and agrees that from time to time he may be required by the Company to travel and stay abroad as part of his duties towards the Company.

 

5.8.                            IL undertakes to use the Company’s Equipment and facilities only for the purpose of his employment. IL acknowledges and agrees that the Company is entitled to conduct inspections within the Company’s offices and on the Company’s computers, including inspections of electronic mail transmissions, internet usage and inspections of their content. For the avoidance of any doubt, it is hereby clarified that all examination’s finding shall be the Company’s sole property.

 

5.9.                            In any event of the termination of this Agreement, IL shall cooperate with the Company and use his best efforts to assist with the integration into the

 

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Company’s organization of the person or persons who will assume IL’s responsibilities.

 

6.                            GENERAL PROVISIONS

 

6.1.                           This Agreement and all Appendixes attached hereto constitute the entire agreement between the parties hereto, excluding the Director Compensation Agreement, and supersedes all prior agreements, proposals, understandings and arrangements, if any, whether oral or written, between the parties hereto with respect to the subject matter hereof.

 

6.2.                           This Agreement may be amended, supplemented or modified only by a written instrument duly executed by or on behalf of each party hereto.

 

6.3.                           This Agreement shall be governed by and construed in accordance with the laws of the State of Israel and the sole and exclusive place of jurisdiction in any matter arising out of or in connection with this Agreement shall be the regional labor court in Tel-Aviv.

 

6.4.                           If any term or provision of this Agreement is declared invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement and its Appendixes shall nevertheless remain in full force and effect.

 

6.5.                           IL acknowledges and declares that he has carefully read and understood all the provisions of this Agreement and its Appendixes, he accepts all such provisions and he signs this Agreement at his own free will and full consent.

 

6.6.                           Any notice or other communications to the other party must be in writing, to the address set forth in the preamble to this Agreement (or to such other address as shall be specified by like notice), sent via registered mail or messenger, and such notice shall be deemed given after four (4) business days, if sent via registered mail, or after one (1) day is sent by messenger, provided a proof of delivery has been received.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first stated above.

 

	
 
    	
Objet Ltd.
    	
 
    	
Employee: 
    	
Ilan Levin
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 By:
    	
/s/ David Reis
    	
 
    	
/s/ Ilan Levin
    
	
 
    	
 
    	
 
    	
 
    
	
 Title:
    	
CEO
    	
 
    	
 
    

 

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APPENDIX A

 

COMPENSATION

 

1.                            Salary.

 

IL shall be entitled to a gross monthly salary  of NIS 27,000 (being the equivalent of USD 7,500 as of February 21, 2011, the date of the resolution of the Board of Directors approving the appointment of IL as President and the approval of his compensation) ] (the “Salary”). The Company will annually evaluate the performance of both IL and the Company and will determine, at the Company’s sole discretion, whether to increase IL’s Salary and, if so, in what amount, and subject to any other approval which may be required under any applicable law.

 

2.                            Insurance Policies.

 

The Company shall insure IL under an accepted ‘Manager’s Insurance Scheme’ (the “Managers Insurance”), in accordance with the expansion order in the Industrial field (the “Order”), as far as it applies to IL, as follows: (i) the Company shall pay an amount equal to 5% of IL’s Salary towards the Managers Insurance for IL’s benefit and shall deduct 5% from IL’s Salary and pay such amount towards the Managers Insurance for IL’s benefit (the various components of the Managers Insurance shall be fixed at the discretion of IL); (ii) the Company shall pay an amount equal to 81/3% of IL’s Salary towards a fund for severance compensation; and (iii) the Company shall pay an amount of up to 21/2% of IL’s Salary towards disability insurance.

 

The IL hereby instructs the Company to transfer to the Managers Insurance the amounts on his behalf. For the avoidance of any doubt, if the amounts accumulated by IL shall be more than the maximum amount according to the Income Tax Order, such amount shall be considered as IL’s income.

 

3.                            Keren Hishtalmut.

 

The Company and IL shall open and maintain a ‘Keren Hishtalmut’ Fund (the “Fund”). Subject to the maximum amount stated in Section 3(e) of the Income Tax Ordinance 1961 (the “Income Tax Ordinance”), the Company shall contribute to such Fund an amount equal to 71/2% of each monthly Salary payment, and IL shall contribute to such Fund an amount equal to 21/2% of each monthly Salary payment. IL hereby instructs the Company to transfer to such Fund the amount of IL’s contribution from each monthly Salary payment. For the avoidance of any doubt, in the event that IL shall accrue an aggregate total amount in the Fund exceeding the maximum total amount prescribed by the Income Tax Ordinance, such extra amount shall be deemed as revenue income and such amount shall be contributed to the Fund or to the Salary as an “Additional Contribution of Keren Hishtalmut,” at IL’s discretion. The Employee hereby declares that such Fund and the Additional Contribution of Keren Hishtalmut shall not be part of the Salary and shall not be taken into account with regard to any and all social benefits that IL is entitled to, including but not limited to severance payment and the social benefits specified in this Employment Agreement.

 

4.                            Funds Release.

 

The Managers Insurance and the Fund (with regard to amounts contributed by the Company) shall be transferred to IL, subject to any applicable law and to the Order,

 

 

as far as it is applicable to IL, upon the termination of the IL’s employment under any circumstances, except in circumstances of termination of employment for Cause, and shall substitute the severance pay owed to IL, according to Section 14 of the Severance Compensation Law, 1963.

 

5.                            Vacation and Sick Leave.

 

Subject to the provisions of the Annual Vacation Law-1951 (the “Vacation Law”), IL shall be entitled to twenty one (21) vacation days (the “Vacation Days”), with respect to each twelve (12) months’ period of continuous employment with the Company. These Vacation Days include the number of paid vacation days to which IL is entitled in accordance with the Vacation Law (the “Vacation Law Days”). Any Vacation Days shall be first credited on account of Vacation Days which are not Vacation Law Days (if any). IL shall be entitled to carry forward only the unused vacation days out of the Vacation Law Days, in accordance with the terms set out in the Vacation Law. IL shall not be entitled to carry forward or to redeem any unused vacation days in excess of the Vacation Law Days.

 

For the avoidance of doubt, the dates of IL’s vacation shall be determined by the Company, in its own discretion, in accordance with the Company’s needs, and to the extent possible, taking into consideration IL’s request. The Company shall be entitled to set uniform dates for vacation to all or part of its employees, with respect to all or any part of the vacation days, as it shall deem fit.

 

IL shall be entitled to sick leave in accordance with the provisions of the Sick Pay Law-1976.

 

6.                            Options

 

Pursuant to the resolution of the General Meeting of Shareholders of the Company, dated June 9, 2011, IL shall be granted 1,000,000 options each such option entitling IL to purchase one (1) Ordinary Share of the Company (the “Options”), at an exercise price of USD 0.90 per share, subject to any dilution. The Options shall vest over a course of four (4) years of continuous employment, as follows: (i) 25% of the Options shall vest and become exercisable at the lapse of 12-month period of continued employment from the Commencement Date, being January 1, 2011, and (ii) the balance thereof shall vest on a quarterly basis during 36 months period thereafter, such that 6.25% of the Options shall vest and become exercisable at the lapse of each quarter of continued employment subsequently thereafter.

 

IL undertakes to take all actions and to sign all documents required, at the discretion of the Company, in order to give effect to and enforce the above terms and conditions. Any tax liability in connection with the Options (including with respect to the grant, exercise, sale of the Options or the shares receivable upon their exercise) shall be borne solely by IL.

 

7.                            Vehicle

 

For the purpose of his employment, the Company shall provide IL, with a vehicle of a make and size similar to the vehicle as provided to the CEO (the “Car”). The Company shall bear all the fixed and variable costs of the car, including licenses, insurance, gas and repairs but the Company shall not bear costs of any tickets, traffic offense or fines of any kind. For the avoidance of any doubt, it is agreed that

 

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with regard to any tax obligations, IL shall not be entitled to any grossing up of the Car benefits.

 

IL shall: (i) take good care of the Car and ensure that the provisions and conditions of any policy of insurance relating thereto are observed (including the provisions with respect to the protection of the Car); and (ii) in the event that IL’s employment terminates for whatever reason, he will forthwith return the Car with the keys and all licenses and other documentation relating to the Car, to the Company. The Car shall be used in accordance with the Company’s policy as shall be in effect from time to time.

 

IL shall not have any lien right in the Car or in any document or property relating thereto.

 

8.                            Business Expenses.

 

The Company shall reimburse IL for necessary and customary business expenses incurred by IL, in accordance with Company policy as determined by the Company from time to time. The Company shall provide IL with a laptop computer and with phone and Internet lines at IL’s home office and cover all expenses associated therewith.

 

9.                            Taxes.

 

The Company shall withhold or charge IL with all taxes and other compulsory payments as required under law in respect of, or resulting from, the compensation paid to or received by him and in respect of all the benefits that IL is or may be entitled to.

 

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APPENDIX B

 

THIS UNDERTAKING (“Undertaking”) is entered into as of the first (1st) day of June 1, 2011, by Ilan Levin, I.D. No. 310064969, an individual residing at 46 Menucha Ve’Nachala Street, Rehovot, Israel (“IL”).

 

WHEREAS,                                            IL wishes to be employed by Objet Ltd., an Israeli company (the “Company”); and

 

WHEREAS,                                            it is critical for the Company to preserve and protect its Confidential Information (as defined below), its rights in Inventions (as defined below) and in all related intellectual property rights, and IL is entering into this Undertaking as a condition to IL’s employment with the Company.

 

NOW, THEREFORE, the IL undertakes and warrants towards the Company as follows:

 

References herein to the term “Company” shall include any of the Company’s direct or indirect parent, subsidiary and affiliated companies, and their respective successors and assigns.

 

1.                            Confidentiality.

 

1.1.                           IL acknowledges that IL has had and is expected to have access to information that relates to the Company, its business, assets, financial condition, affairs, activities, plans and projections, customers, suppliers, partners, and other third parties with whom the Company agreed or agrees, from time to time, to hold information of such party in confidence (the “Confidential Information”). Confidential Information shall include, without limitation, information, whether or not marked or designated as confidential, concerning technology, products, research and development, patents, copyrights, inventions, trade secrets, test results, formulae, processes, data, know-how, marketing, promotion, business and financial plans, policies, practices, strategies, surveys, analyses and forecasts, financial information, customer lists, agreements, transactions, undertakings and data concerning employees, consultants, officers, directors, and shareholders. Confidential Information includes information in any form or media, whether documentary, written, oral, magnetic, electronically transmitted, through presentation or demonstration or computer generated.  Confidential Information shall not include information that has become part of the public domain not as a result of a breach of any obligation owed by IL to the Company.

 

1.2.                           IL acknowledges and understands that the employment by the Company and the access to Confidential Information creates a relationship of confidence and trust with respect to such Confidential Information.

 

1.3.                           During the term of IL’s employment and at any time after termination or expiration thereof, for any reason, IL shall keep in strict confidence and trust, shall safeguard, and shall not disclose to any person or entity, nor use for the benefit of any party other than the Company, any Confidential Information, other than with the prior express consent of the Company.

 

1.4.                           All right, title and interest in and to Confidential Information are and shall remain the sole and exclusive property of the Company or the third party

 

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providing such Confidential Information to the Company, as the case may be. Without limitation of the foregoing, IL agrees and acknowledges that all memoranda, books, notes, records, email transmissions, charts, formulae, specifications, lists and other documents (contained on any media whatsoever) made, reproduced, compiled, received, held or used by IL in connection with the employment by the Company or that otherwise relates to any Confidential Information (the “Confidential  Materials”), shall be the Company’s sole and exclusive property and shall be deemed to be Confidential Information. All originals, copies, reproductions and summaries of the Confidential Materials shall be delivered by IL to the Company upon termination or expiration of IL’s employment for any reason, or at any earlier time at the request of the Company, without IL retaining any copies thereof.

 

1.5.                           During the term of IL’s employment with the Company, IL shall not remove from the Company’s offices or premises any Confidential Materials unless and to the extent necessary in connection with the duties and responsibilities of IL and permitted pursuant to the then applicable policies and regulations of the Company. In the event that such Confidential Material is duly removed from the Company’s offices or premises, IL shall take all actions necessary in order to secure the safekeeping and confidentiality of such Confidential Materials and return the Confidential Materials to their proper files or location as promptly as possible after such use.

 

1.6.                           During the term of IL’s employment with the Company, IL will not improperly use or disclose any proprietary or confidential information or trade secrets, and will not bring onto the premises of the Company any unpublished documents or any property, in each case belonging to any former employer or any other person to whom IL has an obligation of confidentiality and/or non-use (including, without limitation, any academic institution or any entity related thereto), unless generally available to the public or consented to in writing by that person.

 

2.                            Unfair Competition and Solicitation. IL acknowledges that in light of IL’s position with the Company and in view of the IL’s exposure to, and involvement in, the Company’s sensitive and valuable proprietary information, property (including, intellectual property) and technologies, as well as its goodwill and business plans (the “Company’s Major Assets”), the provisions of this Section 2 are reasonable and necessary to legitimately protect the Company’s Major Assets, and are being undertaken by IL as a condition to the employment of IL by the Company. IL confirms that IL has carefully reviewed the provisions of this Section 2, fully understands the consequences thereof and has assessed the respective advantages and disadvantages to IL of entering into this Undertaking and, specifically, Section 2 hereof.  In light of the above provisions, IL undertakes that during the term of employment with the Company and for a period of twelve (12) months thereafter:

 

2.1.                           IL shall not engage, establish, open or in any manner whatsoever become involved, directly or indirectly, either as an employee, owner, partner, agent, shareholder, director, consultant or otherwise, in any business, occupation, work or any other activity which is reasonably likely to involve or require the use of any of the Company’s Major Assets. IL confirms that engagement, establishment, opening or involvement, directly or indirectly,

 

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either as an employee, owner, partner, agent, shareholder, director, consultant or otherwise, in any business, occupation, work or any other activity which competes with the business of the Company as conducted during the term of employment or contemplated, during such term, to be conducted, is likely to require the use of all or a portion of the Company’s Major Assets.

 

2.2.                           IL shall not, directly or indirectly, solicit, hire or retain as an employee, consultant or otherwise, any employee of the Company or induce or attempt to induce any such employee to terminate or reduce the scope of his or her employment with the Company.

 

2.3.                           IL shall not, directly or indirectly, solicit or induce, or attempt to solicit or induce, any consultant, service provider, agent, distributor, customer or supplier of the Company to terminate, reduce or modify the scope of such person’s engagement with the Company.

 

3.                            Ownership of Inventions.

 

3.1.                           IL will notify and disclose in writing to the Company, or any persons designated by the Company from time to time, all information, improvements, inventions, formulae, processes, techniques, know-how and data, whether or not patentable or registerable under copyright or any similar laws, made or conceived or reduced to practice or learned by IL, either alone or jointly with others, during IL’s employment with the Company (including after hours, on weekends or during vacation time) (all such information, improvements, inventions, formulae, processes, techniques, know-how, and data are hereinafter referred to as the “Invention(s)”) immediately upon discovery, receipt or invention as applicable.

 

3.2.                           IL agrees that all the Inventions are, upon creation, considered Inventions of the Company, shall be the sole property of the Company and its assignees, and the Company and its assignees shall be the sole owner of all patents, copyrights, trade secret and all other rights of any kind or nature, including moral rights, in connection with such Inventions. IL hereby irrevocably and unconditionally assigns to the Company all the following with respect to any and all Inventions: (i) patents, patent applications, and patent rights, including any and all continuations or extensions thereof; (ii) rights associated with works of authorship, including copyrights and copyright applications, Moral Rights (as defined below) and mask work rights; (iii) rights relating to the protection of trade secrets and confidential information; (iv) design rights and industrial property rights; (v) any other proprietary rights relating to intangible property including trademarks, service marks and applications therefor, trade names and packaging and all goodwill associated with the same; and (vi) all rights to sue for any infringement of any of the foregoing rights and the right to all income, royalties, damages and payments with respect to any of the foregoing rights.  IL also hereby forever waives and agrees never to assert any and all Moral Rights IL may have in or with respect to any Inventions, even after termination of employment on behalf of the Company.  “Moral Rights” means any right to claim authorship of a work, any right to object to any distortion or other

 

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modification of a work, and any similar right, existing under the law of any country in the world, or under any treaty.

 

3.3.                           IL further agrees to perform, during and after employment, all acts deemed reasonably necessary or desirable by the Company to permit and assist it, at the Company’s expense, in obtaining, maintaining, defending and enforcing the Inventions in any and all countries. Such acts may include, but are not limited to, execution of documents and assistance or cooperation in legal proceedings. IL hereby irrevocably designates and appoints the Company and its duly authorized officers and agents, as IL’s agents and attorneys-in-fact to act for and on IL’s behalf and instead of IL, to execute and file any documents and to do all other lawfully permitted acts to further the above purposes with the same legal force and effect as if executed by IL.

 

3.4.                           IL shall not be entitled, with respect to all of the above, to any monetary consideration or any other consideration except as explicitly set forth in the employment agreement between IL and the Company. Without limitation of the foregoing, IL irrevocably confirms that the consideration explicitly set forth in the employment agreement is in lieu of any rights for compensation that may arise in connection with the Inventions under applicable law and waives any right to claim royalties or other consideration with respect to any Invention, including under Section 134 of the Israeli Patent Law — 1967. With respect to all of the above any, oral understanding, communication or agreement not memorialized in writing and duly signed by the Company shall be void.

 

4.                            General.

 

4.1.                           IL represents that the performance of all the terms of this Undertaking and IL’s duties as an employee of the Company does not and will not breach any invention assignment, proprietary information, non-compete, confidentiality or similar agreements with, or rules, regulations or policies of, any former employer or other party (including, without limitation, any academic institution or any entity related thereto).  IL acknowledges that the Company is relying upon the truthfulness and accuracy of such representations in employing IL.

 

4.2.                           IL acknowledges that the provisions of this Undertaking serve as an integral part of the terms of IL’s employment and reflect the reasonable requirements of the Company in order to protect its legitimate interests with respect to the subject matter hereof.

 

4.3.                           IL recognizes and acknowledges that in the event of a breach or threatened breach of this Undertaking by IL, the Company may suffer irreparable harm or damage and will, therefore, be entitled to injunctive relief to enforce this Undertaking (without limitation to any other remedy at law or in equity).

 

4.4.                           This Undertaking is governed by and construed in accordance with the laws of the State of Israel, without giving effect to its laws pertaining to conflict of laws.  IL agrees that any and all disputes in connection with this Undertaking shall be submitted to the exclusive jurisdiction of the competent courts located in the city of Tel-Aviv-Jaffa, Israel.

 

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4.5.                           If any provision of this Undertaking is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto.  If such clause or provision cannot be so enforced, such provision shall be stricken from this Undertaking only with respect to such jurisdiction in which such clause or provision cannot be enforced, and the remainder of this Undertaking shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable) never been contained in this Undertaking. In addition, if any particular provision contained in this Undertaking shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing the scope of such provision so that the provision is enforceable to the fullest extent compatible with applicable law.

 

4.6.                           The provisions of this Undertaking shall continue and remain in full force and effect following the termination or expiration of the employment relationship between the Company and IL, for whatever reason. This Undertaking shall not serve in any manner so as to derogate from any of IL’s obligations and liabilities under any applicable law.

 

4.7.                           This Undertaking constitutes the entire agreement between IL and the Company with respect to the subject matter hereof.  No amendment of or waiver of, or modification of any obligation under this Undertaking will be enforceable unless set forth in a writing signed by the Company.  No delay or failure to require performance of any provision of this Undertaking shall constitute a waiver of that provision as to that or any other instance.  No waiver granted under this Undertaking as to any one provision herein shall constitute a subsequent waiver of such provision or of any other provision herein, nor shall it constitute the waiver of any performance other than the actual performance specifically waived

 

4.8.                           This Undertaking, the rights of the Company hereunder, and the obligations of IL hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators and legal representatives.  The Company may assign any of its rights under this Undertaking.  IL may not assign, whether voluntarily or by operation of law, any of its obligations under this Undertaking, except with the prior written consent of the Company.

 

IN WITNESS WHEREOF, the undersigned, has executed this Undertaking as of the date first mentioned above.

 

	
Printed Name:
    	
Ilan Levin
    	
 
    	
Signature:
    	
/s/ Ilan Levin
    

 

12Exhibit 10.10

 

***TEXT OMITTED AND SUBMITTED SEPARATELY
 PURSUANT TO CONFIDENTIAL TREATMENT REQUEST
 UNDER 17 C.F.R. SECTIONS 200.80(b)(4) AND 230.406

 

 

OEM PURCHASE AND LICENSE AGREEMENT

 

By and Between

 

OBJET GEOMETRIES LTD.

 

and

 

RICOH PRINTING SYSTEMS AMERICA, INC.

 

 

This OEM PURCHASE & LICENSE AGREEMENT (“Agreement”)  is made and entered into by and between RICOH PRINTING SYSTEMS AMERICA, INC., (hereinafter called “RICOH”), having an office at 2390-A Ward Avenue, Simi Valley, California 93065, and OBJET GEOMETRIES LTD., having offices at 2 Holtzman Street, Science Park, Rehovot, Israel (hereinafter called “LICENSEE”).

 

For good and valuable consideration, RICOH and LICENSEE agree as follows:

 

1.                            RECITALS

 

This Agreement is made with reference to the following facts:

 

1.1               RICOH and/or its licensor has developed ink jet printer technology which employs a proprietary printhead and proprietary electronics.

 

1.2               RICOH and/or its licensor has also developed trade secrets and confidential information and know-how regarding the use of such printhead(s) subassemblies thereof and/or electronics in a document processing or other printing device (e.g., a printer) and the method of operation in order to form indicia on various media. LICENSEE has contributed its own confidential information and know-how toward development of a printhead configuration unique to LICENSEE’s printhead.

 

1.3               LICENSEE desires to continue to purchase from RICOH printheads, subassemblies thereof and/or related electronics and requires the use of the confidential information and trade secrets of RICOH to assemble the printheads, subassemblies and/or electronics into an ink jet printing device and to operate and use the ink jet printing device of LICENSEE’s own design in the Field of Use defined in Appendix A.

 

1.4               RICOH, rather than selling the ink jet printer, is willing to continue to sell Printhead(s) (as defined below), subassemblies and/or electronics for each printing device along with a license to use certain RICOH confidential information and trade secrets in connection with said Printhead(s), subassemblies and/or electronics to enable LICENSEE to continue to assemble, operate and use such items in the printing device. RICOH and LICENSEE acknowledge that in order to effectuate these arrangements, each has and will continue to provide to the other party trade secrets, confidential information, know-how, other protected or patentable information, and patents that all pertain to a single product, an ink jet printer, and that the utility of such items is interdependent and inseparable.

 

1.5               RICOH (formerly Hitachi Koki Imaging Solutions Inc.) and LICENSEE have   been parties to an agreement dated January 17, 2000 (“Original Effective Date”) reflecting such terms and which through subsequent amendments has remained in effect (“Original Agreement”). The parties agree that the Original Agreement shall expire at 11:59pm U.S. Pacific Standard Time on the day preceding the date on which both parties have executed this Agreement (“Cut-Off Time”), and this Agreement shall become effective at 12:00am U.S. Pacific Standard Time on the date both parties have executed this Agreement (“Effective Date”). The Original Agreement shall apply to all products ordered until the Cut-Off Time and this Agreement shall apply to all products ordered from the Effective Date.

 

2

 

2.                            DEFINITIONS

 

The following definitions shall apply to this Agreement and any amendments hereto:

 

2.1  Confidential  Technical  Information.   “Confidential Technical Information” shall mean any or all of RICOH’s Technical Information disclosed, directly or indirectly, to LICENSEE by RICOH heretofore or hereafter under this Agreement, which information shall be indicated as confidential, except:  (a) technical information which at the time of its disclosure was in the public domain;  (b) technical information which RICOH generally makes available to third parties without restrictions on use or disclosure;  (c)  technical information which LICENSEE can show was in its possession  at the time of disclosure and was not acquired, directly or indirectly, from RICOH  or from a third party under an obligation of confidence; and  (d) technical information which LICENSEE can show was received by it after the time of disclosure from a third party who did not require LICENSEE to hold it in confidence and who did not acquire it, directly or indirectly, from RICOH under an obligation of confidence. All technical information disclosed by RICOH to LICENSEE hereunder shall be presumed to be confidential.

 

2.2  Intellectual Property.  “Intellectual Property” means  any inventions, discoveries, ideas, improvements, processes, devices, products, designs, technology, specifications, formulations, compounds, recipes, software, equipment, chemicals, resins, trade secrets, data, information or the like, whether patentable or not, held, obtained, developed, or conceived by a party or the parties and related to the Printheads.

 

2.3  Intellectual Property Rights.  “Intellectual Property Rights” means, with respect to the Intellectual Property, any and all right, title and interest in and to any and all trade secrets, patents, know-how, copyrights, service marks, trademarks, trade names, rights in trade dress and packaging, moral rights, rights of privacy, publicity and similar rights of any type, including Patent Rights, under the laws or regulations of any foreign or domestic governmental, regulatory or judicial authority.

 

2.4  Convoyed Sales Rule. “Convoyed Sales Rule” means RICOH’s right to receive [***], because the [***] functions with the Licensed Product (a) to produce a desired end product or result; or (b) to constitute a single complete machine or functional unit; or (c) such that they cannot effectively be used independent of one another.

 

2.5  Resin. For purposes of this Agreement, Resin shall include any jettable fluid that may be used by LICENSEE with the Printhead.

 

2.6  Licensed Product.  “Licensed Product” shall mean (a)  LICENSEE’s printer system or printer subsystem as described in Appendix A, (b) for use solely in the Field of Use defined in Appendix A, (c) that employs (i) RICOH’s printheads (“Printheads”) and (ii) RICOH’s Technical Information (as defined below).  Appendix A is attached hereto and incorporated herein by this reference.

 

2.7  RICOH  Technical Information.  “RICOH Technical Information” shall mean use, operating and assembly information and know-how, written or otherwise (including, without limitation any software or firmware), relating to the Printhead, including changes, enhancements, and improvements, whether copyrighted or not, which RICOH possesses during the term of this Agreement, in so far as is necessary or useful to LICENSEE in the

 

***CONFIDENTIAL TREATMENT REQUESTED

 

3

 

assembly, use, test, installation, maintenance, or operation of the Printhead(s) in connection with the Licensed Product.

 

2.8  Licensee Technical Information.  “Licensee Technical Information” shall mean any or all of the LICENSEE technical information disclosed, directly or indirectly, to RICOH by LICENSEE heretofore or hereafter under this Agreement, which information shall be indicated as confidential, except:  (a) technical information which at the time of its disclosure was in the public domain;  (b) technical information which LICENSEE generally makes available to third parties without restrictions on use or disclosure;  (c) technical information which RICOH can show was in its possession  at the time of disclosure and was not acquired, directly or indirectly, from LICENSEE or from a third party under an obligation of confidence; and  (d) technical information which RICOH can show was received by it after the time of disclosure from a third party who did not require RICOH to hold it in confidence and who did not acquire it, directly or indirectly, from LICENSEE under an obligation of confidence.  All technical information disclosed by LICENSEE to RICOH hereunder shall be presumed to be confidential.

 

2.9  Patent Rights.  “Patent Rights” shall mean (a) all patents and patent applications relevant to the Printhead(s) owned by or assigned to RICOH as of the Effective Date, (b) all divisions, continuations, and reissues or extensions thereof hereafter obtained, and (c) all patents licensed to RICOH by its parent company with the right to grant sublicenses incident to the sale of the Printhead(s).  Notwithstanding the foregoing, Patent Rights does not mean or include patents, patent applications and claims thereof which cover the LICENSEE printer system or subsystem into which the Printhead(s) is placed, where such coverage would exist even in the absence of the Printhead(s).

 

2.10  Printhead. “Printhead” shall mean RICOH’s proprietary multi-channel, drop-on-demand piezoelectric fluid-jetting actuator.

 

2.11  Replacement Parts.   “Replacement Parts” shall mean Printhead(s) sold by LICENSEE as service parts in connection with the Licensed Product.

 

2.12  Technical  Support.  “Technical Support” shall mean limited technical assistance provided by RICOH to advise LICENSEE about the Printhead in connection with the use, operation and assembly of Licensed Products.

 

3.             DESCRIPTION, FORECASTS, AND USE

 

3.1   During the term hereof, LICENSEE agrees to purchase RICOH Printhead(s) and RICOH agrees to sell RICOH Printhead(s), in accordance with the terms and conditions set forth herein.

 

3.2   Upon execution of this Agreement, LICENSEE shall forward to RICOH a non-binding written forecast covering by quarter LICENSEE’s good faith estimate of its requirements for RICOH Printhead(s) over the following twelve (12) months. LICENSEE shall provide RICOH with updated forecasts at least once every calendar quarter during the Term hereof.

 

3.3  RICOH shall maintain sufficient capacity, capability, and raw materials to, and shall if ordered by LICENSEE, make reasonable efforts to  supply up to [***] of such forecasts.

 

***CONFIDENTIAL TREATMENT REQUESTED

 

4

 

3.4 LICENSEE agrees that the products purchased hereunder shall only be used in Licensed Products.

 

4.             TERM OF AGREEMENT

 

4.1          This Agreement shall be valid for a period of five (5) years (Term) beginning on the Effective Date, unless terminated earlier pursuant to Section 21. The Term shall automatically be extended for additional, consecutive one (1) year periods, unless either party gives the other written notice of termination at least six (6) months prior to the expiration of the Term or any subsequent renewal term.

 

5.             PRICES

 

Prices for the purposes of this Agreement will be those specified in Appendix C.

 

6.             OEM CERTIFICATION

 

6.1          LICENSEE represents that the Printhead(s) purchased hereunder will be utilized by LICENSEE in the assembly, and as a constituent part, of a Licensed Product assembled by LICENSEE  and supplied for sale or lease to third parties in the regular course of LICENSEE’s business.

 

6.2          RICOH represents that the Printhead(s) will not be sold or otherwise made available, directly, or indirectly to any entity that may or will resell same, to LICENSEE customers, unless LICENSEE has explicitly directed otherwise in writing in a particular instance.

 

7.             PURCHASE ORDERS AND ACKNOWLEDGMENTS

 

7.1    Purchase Orders and Acknowledgments; Delivery  Schedule.   LICENSEE shall order Printhead(s) by written purchase orders referencing this Agreement (“Purchase Orders”).  Purchase Orders shall state the Printhead quantities in minimum lots of fifty (50), applicable prices, requested delivery dates and shipping instructions.  RICOH will issue a Sales Order Notice (SON) either (a) acknowledging acceptance of LICENSEE’s Purchase Order and advising LICENSEE of RICOH’s delivery schedule; or (b)  rejecting LICENSEE’s Purchase Order solely due to non-conformance with the terms and conditions of the Agreement.   All Purchase Orders are deemed to be firm orders, not subject to cancellation.

 

7.2    Delivery/Terms at Expiration.  All Purchase Orders for Printheads must be received by RICOH before the end of the Term, and all Printheads shall be scheduled by LICENSEE for delivery no later than one hundred twenty (120) days after the end of the Term.   The terms and conditions of this Agreement shall remain in full force and effect until all deliveries are made, and thereafter with regard to any continuing obligation of either party.

 

7.3  The terms and conditions appearing on purchase orders, invoices, acknowledgments or other documents or forms exchanged by the parties shall in no way be construed to vary, modify or supplement the terms and conditions of this Agreement which terms and conditions may be modified only in accordance with paragraph 25.10.

 

8.             TERMS OF PAYMENT

 

8.1          Payment.  The manner and method of payment shall be those established from time to time by mutual agreement based upon the creditworthiness of LICENSEE and other factors. Unless otherwise agreed between the parties, all payments shall be in U.S. Dollars and shall be made by check, draft, wire transfer or letter of credit and shall be

 

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drawn on a U.S. Bank. Payment for the Printheads shall be due net [***] days from the date of invoice. The wiring instructions shall be as specified on invoice. If, and for so long as, LICENSEE fails to make payments when due, or otherwise defaults or breaches this Agreement, RICOH shall have the right to (a) suspend credit and delay shipment until such terms are met; and/or (b) change the payment terms; and/or (c) cancel any outstanding Purchase Order, and receive reimbursement for actual cancellation costs; and/or (c) pursue any other remedies available at law or equity.  Adjustment of credit limit shall be as mutually agreed between the parties.

 

8.2   Late Payments. Any payment not made on or before its due date may at the discretion of RICOH be subject to a prorated annual interest charge of the lesser of (a) eighteen percent (18%), or (b) the Bank of America prime rate reported in the Wall Street Journal (Western Edition) on the last business day of the calendar month immediately preceding the calendar month during which any amounts owing hereunder became delinquent, plus two percent  (2%) or (c) the maximum rate permitted by law.

 

8.3   Security Interest Reserved.  RICOH reserves, until full payment is received, a purchase money security interest in each Printhead sold pursuant to this Agreement.  RICOH’s repossession of Printheads pursuant to its security interest shall be without prejudice to any other remedies RICOH may have at law or in equity. RPSA shall have priority to the proceeds from the sale of Printheads subject to a perfected purchase money security interest.

 

8.4    Financial Information.  No more than once per calendar year, LICENSEE agrees to provide to RICOH the financial information set forth in Appendix D of this Agreement to assist RICOH in assessing LICENSEE’s creditworthiness upon request. RICOH shall reasonably determine whether an adequate credit line is available on LICENSEE’s account and the parties will discuss whether and what other credit arrangements are necessary.

 

9.             DELIVERY, TITLE, AND RISK OF LOSS

 

9.1          Lead Time.  Standard lead time for Printheads is ninety (90) days After Receipt of Order (ARO).  RICOH will consider written rescheduling requests made by LICENSEE on a case-by-case basis, and will quote rescheduling charges, if any, to LICENSEE for LICENSEE’s approval before implementing any requested schedule adjustments.

 

9.2          Title, Risk of Loss or Damage.  All Printheads shall be shipped F.O.B. RICOH’s dock, freight collect. Title for Printheads purchased by LICENSEE shall pass only upon payment in full for the Printheads. Risk of loss or damage to Printheads shall pass to LICENSEE upon delivery to the carrier at the F.O.B. point.

 

10.          SHIPPING, DELIVERY AND PACKAGING

 

10.1        Carrier Designation and Delivery Instructions.  The mode of transportation shall be designated by LICENSEE on each Purchase Order and may be revised by written notice received by RICOH at least twenty (20) business days before the scheduled delivery date.  Shipments against Purchase Orders without specific shipping and delivery instructions will be made at LICENSEE’s risk and expense via air transportation of RICOH’s reasonable choosing.

 

***CONFIDENTIAL TREATMENT REQUESTED

 

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10.2  Packaging. The prices set forth in Appendix C include commercial packaging adequate for shipment by air or land surface carriers. Special packaging required by LICENSEE for shipment by other modes shall be quoted by RICOH on request.

 

11.          CONFIDENTIALITY

 

11.1 Protection and Nondisclosure. LICENSEE agrees to maintain RICOH’s Confidential Technical Information and any other confidential information exchanged between the parties (including but not limited to data, plans, specifications, designs and drawings, and financial information) in confidence from the time of disclosure and to use its best efforts to prevent the disclosure thereof to others, except (a) in confidence on a need-to-know basis, and (b) only to employees of LICENSEE who have agreed in writing to maintain such RICOH’s Confidential Technical Information in confidence, and (c) only to the extent necessary for making, using, repairing and maintaining the Licensed Products. RICOH agrees to maintain Licensee Technical Information (including but not limited to data, plans, specifications, designs and drawings) in confidence from the time of disclosure and to use its best efforts to prevent the disclosure thereof to others, except (a) in confidence on a need-to-know basis, and (b) only to employees of RICOH who have agreed in writing to maintain such Licensee Technical Information in confidence, and (c) only to the extent necessary for purposes of this Agreement.  The parties agree that the terms and conditions specified in this Agreement shall be treated by the parties as confidential information as addressed hereunder (i) except to the extent that applicable securities and other laws, rules, or regulations, and related proceedings or investigations require disclosure thereof, provided in such cases prior, written notice is given to the other party reasonably in advance to allow the other party to request confidential treatment or to seek a protective order to injunctive relief to limit the disclosure and such disclosure shall be so limited and further provided that the party requested to provide such information shall give the other party its reasonable cooperation in connection therewith and (ii) except to the extent required in due diligence procedures not required  under sub-clause (i) above, provided in such cases the party seeking to disclose shall be required to obtain prior, written consent of the other party, such consent not to be unreasonably withheld or delayed.

 

11.2     Prohibition on Use In Patent Applications.  LICENSEE shall not file a patent application anywhere in the world containing disclosure of RICOH’s Confidential Technical Information without first obtaining RICOH’s written permission.  RICOH shall not file a patent application anywhere in the world containing disclosure of LICENSEE’s Confidential Technical Information without first obtaining LICENSEE’s written permission.

 

11.3        Cessation of Use and Return. Upon expiration, termination or cancellation of this Agreement, or immediately once a need to comply with any surviving provisions of this Agreement ceases, each party shall cease using the other party’s confidential information and on request shall return all such information, including, without limitation, all copies, adaptations, interpretations and derivatives thereof.

 

12.                     LICENSE GRANT UNDER PATENT RIGHTS AND CONFIDENTIAL TECHNICAL INFORMATION

 

Subject to the terms and conditions of this Agreement, RICOH hereby grants to LICENSEE nontransferable rights:

 

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12.1    Under Patent Rights and Confidential Technical Information to assemble, use and sell Licensed Products.

 

12.2        RICOH shall transfer to LICENSEE existing documentation embodying RICOH Confidential Technical Information that would in RICOH’s reasonable opinion be useful or required to LICENSEE in the assembly, operation and use of Licensed Products  RICOH makes no warranty (and LICENSEE agrees that none shall be implied) that any documentation supplied hereunder is error free. Once each year during the Term, RICOH shall supply LICENSEE with new documentation, if any, that has been prepared during the year to supplement or replace the documentation previously supplied to LICENSEE.

 

12.3        No right or license is granted to LICENSEE or to any third party, by implication, estoppel or otherwise under any patent, patent application or other patent right other than the Patent Rights. No right or license is granted, by implication, estoppel or otherwise, to any entity other than LICENSEE. No right or license is granted, by implication, estoppel or otherwise, other than those rights and licenses expressly granted in this Agreement.

 

12.4        Subject to the terms and conditions of this Agreement and only to effect the purpose of supplying RICOH Printheads to LICENSEE, LICENSEE hereby grants to RICOH nontransferable rights to use LICENSEE Technical Information in the manufacturing of RICOH Printheads.

 

13.          [***]

 

13.1        [***].

 

13.2        [***].

 

13.3        [***].

 

13.4        [***].

 

14.     AVAILABILITY AND DISCONTINUANCE

 

14.1   Availability. For a period of five (5) years from the earlier of (a) any termination of this Agreement pursuant to Section 21 below; or (b) the date of discontinuance of any Printhead model, RICOH shall make Printheads available for purchase by LICENSEE solely for use as Replacement Parts. During the last year of the five (5) year term indicated above, LICENSEE may place a final Purchase Order which will be fulfilled by RICOH within twelve (12) months of receipt of said final Purchase Order. LICENSEE understands and agrees that Printheads provided by RICOH pursuant to this Section 13.1 shall not be used by LICENSEE to manufacture new Licensed Products.

 

14.2    Discontinuance. RICOH reserves the right to discontinue the manufacture and supply of a Printhead model, provided that RICOH gives LICENSEE not less than eighteen (18) months’ prior written notice of such discontinuance, and RICOH agrees to honor all LICENSEE’s Purchase Orders for such Printheads within the notice period. After this notice period, Section 14.1 shall apply.

 

14.3   In the event the parties agree that Intellectual Property has resulted from the parties’ joint efforts under this Agreement, the parties agree to enter into a separate agreement that sets forth the terms and conditions that will govern such jointly developed Intellectual Property.

 

***CONFIDENTIAL TREATMENT REQUESTED

 

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14.4  RICOH  acknowledges the importance to LICENSEE of maintaining a continuous supply of  Printheads for customers of the Licensed Product, therefore, RICOH agrees to make arrangements for, provide, and maintain during the term hereof, [***], and (ii) a back-up supply of RICOH Apparatus, in quantities to be specified in Appendix E.

 

15.          TRAINING AND TECHNICAL SUPPORT

 

Technical support requested by LICENSEE will be charged at RICOH’s prevailing rate for such technical support, plus travel, lodging and other living expenses.

 

16.          INSPECTION AND ACCEPTANCE

 

16.1  LICENSEE may conduct, at its own expense, incoming acceptance tests to confirm that each Printhead operates in accordance with the applicable Printhead Specification attached  hereto as Appendix B. Acceptance testing of the  Printhead(s) shall be completed prior to any modifications and/or reconfiguration of the same by LICENSEE. It shall be LICENSEE’s responsibility to assure that changes made by it to  Printheads do not affect performance. The period for conducting such tests shall not exceed one-hundred eighty (180) calendar days from shipment to LICENSEE of the Printheads (“Acceptance Period”). Upon the expiration of the Acceptance Period the Printheads shall conclusively be deemed accepted, unless written notice of acceptance test failure is provided to RICOH prior to such expiration. Payment shall not be construed as acceptance.

 

16.2   At the commencement of deliveries of  Printheads, and thereafter from time to time during the Term of this Agreement and after reasonable notice to RICOH, LICENSEE’S representative(s) shall be entitled to visit the plant at which the Printheads are manufactured and view the complete testing of  the Printheads prior to shipment to LICENSEE, in accordance with RICOH’s standard test procedure. The inspection described above shall be carried out during normal working hours at no charge to LICENSEE, and shall not impede, delay or interfere with RICOH’s operations or deliveries.

 

17.          ENGINEERING CHANGES

 

17.1        If LICENSEE desires that RICOH modify the RICOH Printhead configuration, any such change shall be considered LICENSEE Technical Information and must be specified in writing to RICOH for discussion, quotation, agreement, and acceptance.

 

17.2        During the term of this Agreement RICOH will not make any change in  Printheads which would affect the Printhead’s form, fit, function, performance, appearance, electrical or mechanical interface, or interchangeability of parts, without first receiving LICENSEE’S written consent. Such consent shall not be unreasonably withheld.

 

17.3        Notwithstanding paragraph 17.2, any mandatory change required to meet safety requirements shall be promptly incorporated by RICOH into  the Printheads delivered to LICENSEE following the discovery thereof. A sufficient quantity of material kits will be delivered to enable LICENSEE to correct any affected  Printheads previously purchased. These mandatory change material kits will be made available to LICENSEE free of charge for a period not to exceed ninety (90) days from the issue date of the mandatory change notice. Installation of such kits shall be the responsibility of LICENSEE.

 

***CONFIDENTIAL TREATMENT REQUESTED

 

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17.4        RICOH has the right to supply an upgraded Printhead(s) to LICENSEE. Should RICOH develop an upgraded Printhead(s) at a lower price or improved performance, LICENSEE shall have the option to purchase such upgraded Printheads at the applicable price.

 

18.          TAXES

 

All payments made by LICENSEE to RICOH shall be subject to any applicable sales, use, withholding, excise, or other taxes, customs, and other charges levied by any governmental authority.  Any such applicable sales, use, or excise taxes or other charges levied by any government authority shall be separately itemized on RICOH’s invoice and paid by LICENSEE, unless LICENSEE furnishes to RICOH an exemption certificate or such other evidence prescribed by the appropriate taxing authority and acceptable to such authority as proof of exemption from such taxes.

 

19.          WARRANTIES AND DISCLAIMERS; PRODUCT LIABILITY

 

19.1   RICOH warrants that the Printheads, under normal use and service and when employed in accordance with the RICOH Technical Information, will be free from defects in materials and workmanship for a period of [***] from the date on which LICENSEE ships them for use to its customers, or [***] from the date of shipment to LICENSEE, whichever comes first.  The implementation of this requires LICENSEE to provide RICOH with a monthly list of Printhead serial numbers that were shipped so that the warranty status can be established for returned Printheads.

 

19.2  RICOH will, without charge, promptly repair or replace, at its option, the  Printheads,  or any part thereof (normal wear and tear excluded) which are determined to be defective within the warranty period and which are returned to RICOH, F.O.B. dock, RICOH’S designated facility, provided the Printhead(s) has not been damaged, subjected to excessive duty cycle, misuse or abnormal operation, or altered or improperly installed, repaired or maintained by Licensee or others in a manner which RICOH reasonably determines to have adversely affected performance or reliability as notified to LICENSEE in writing.

 

THE ABOVE WARRANTY DOES NOT COVER DAMAGE TO PRINTHEADS CAUSED BY THE USE OF RESIN THAT DOES NOT MEET RICOH’S INK SPECIFICATIONS AS NOTIFIED TO LICENSEE IN WRITING.

 

19.3    Warranty claims hereunder must be made promptly in writing, stating the nature and date of the failure, the Printhead(s) serial number, if applicable, and must be received by RICOH within the applicable warranty period.

 

19.4     The above warranty extends solely to LICENSEE and all warranty claims must be made by LICENSEE and not by customers of LICENSEE. Repair or replacement of Printheads, or any part thereof shall neither extend nor decrease the original warranty period.

 

19.5   RICOH’s liability is limited to, and LICENSEE’s sole and exclusive remedy for breach of warranty shall be, the repair or replacement of the defective Printheads, or any part thereof and does not include any labor related to the subsequent installation thereof.

 

***CONFIDENTIAL TREATMENT REQUESTED

 

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Printheads, or any part thereof repaired or replaced by RICOH will be shipped to LICENSEE’s F.O.B. destination.

 

19.6    THE EXPRESS WARRANTIES OF RICOH MADE IN THIS AGREEMENT ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, WARRANTIES OF FITNESS AND MERCHANTABILITY, AND SET FORTH RICOH’s SOLE OBLIGATION AND LICENSEE’S EXCLUSIVE REMEDIES IN CONNECTION WITH SUCH WARRANTIES. EXCEPT TO THE EXTENT OF ITS OBLIGATIONS RELATED TO CONFIDENTIALITY NEITHER PARTY SHALL BE LIABLE FOR ANY LOSS OF PROFITS, LOSS OR INTERRUPTION OF BUSINESS, LOSS OF USE OR LOSS OF DATA, NOR FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, REGARDLESS OF THE FORM OR CAUSE OF ACTION, WHETHER UNDER THIS AGREEMENT OR OTHERWISE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS.

 

19.7    LICENSEE or its customer shall have the sole control over, and responsibility for, the operation, use, sale and maintenance of Licensed Product. RICOH makes no warranty, express or implied, nor any representation or guarantee as to:

 

(A)           the performance of  Printhead(s) except that in addition to the other warranties contained herein RICOH does warrant under Paragraph 19 that the RICOH Printheads shall meet the Technical Specifications of the RICOH Printheads, which Specifications shall serve as “product acceptance specifications”;

 

(B)           RICOH Technical Information or Patent Rights, except as otherwise expressly set forth herein; or

 

(C)           the freedom from infringement of third party patents by use of RICOH Technical Information or Confidential Technical Information furnished hereunder or by use of inventions covered by Patent Rights, except that RICOH does agree to undertake the express obligations set forth in Article 20, Intellectual Property Indemnification/Defense and Hold Harmless, in connection with the matters described herein.

 

19.8     LICENSEE understands and agrees that for breach of any and all warranties and the sole remedies for RICOH’s liability of any kind (including liability for negligence) with respect to the Printheads or any part thereof and services covered by this Agreement and all other performance by RICOH under or pursuant to this Agreement, shall be limited to the remedies provided in this Article 19.

 

Subject to Article 19.9, with respect to any claim, suit or action for product liability (e.g., strict liability negligence or the like), to the extent such claim, suit or action results from LICENSEE’s making, using, and selling the Licensed Product, LICENSEE shall at its own expense, defend RICOH in any such claims, suits or actions, and pay RICOH reasonable attorneys’ fees and any damages or other sums which may be assessed or may become payable under any final decree or judgment in any such claim suit or action or under any settlement thereof, provided, however, that RICOH (a) promptly notifies LICENSEE  in writing, of such suit, claim or proceeding, (b) gives LICENSEE full information and assistance required to defend such suit, claim or proceeding, (c)

 

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allows LICENSEE at LICENSEE’s expense sole direction and control over the defense and/or settlement of any such claim, suit or proceeding.

 

19.9     With respect to any claim, suit or action for product liability (e.g., strict liability negligence or the like) relating to the Printheads, RICOH shall at its own expense, defend LICENSEE in any such claims, suits or actions, and pay LICENSEE’s reasonable attorneys’ fees and any damages or other sums which may be assessed or may become payable under any final decree or judgment in any such claim suit or action or under any settlement thereof, provided, however, that LICENSEE (a) promptly notifies RICOH in writing, of such suit, claim or proceeding, (b) gives RICOH full information and assistance required to defend such suit, claim or proceeding, and (c) allows RICOH at RICOH’s expense, to direct the defense including selection of counsel and negotiation of any settlement.

 

20.                               INTELLECTUAL PROPERTY INDEMNIFICATION/ DEFENSE AND HOLD HARMLESS

 

20.1      Indemnification by RICOH.

 

20.1.1   Infringement.  RICOH agrees to (a) defend and indemnify LICENSEE, at RICOH’s own cost and expense, for any claims, suits or actions based on a claim that Printhead(s) purchased hereunder infringe any patent, copyright, mask work, trade secret or other proprietary right of any third party and (b) pay any damages, costs and expenses (including reasonable attorney’s fees) and other sums which may be assessed or may become payable under any final decree or judgment in any such claim, suit or action or under any settlement thereof, provided that (i) LICENSEE shall promptly notify RICOH in writing of any such claim of infringement and furnishes RICOH with all papers received by LICENSEE in connection therewith, (ii) RICOH shall have sole direction and control over the defense and/or settlement of any such claim, suit or proceeding and (iii) LICENSEE shall provide reasonable assistance to RICOH’s attorneys in connection with such defense and/or settlement.

 

20.1.2   RICOH’s Options.  If the use or sale of the Printhead is enjoined, RICOH shall have the right, at its option to (a) replace or modify the Printhead,  (b) procure for LICENSEE the right to continue use of the Printhead, or (c) repurchase the Printhead from LICENSEE and refund the purchase price paid, less a reasonable amount for use, depreciation, damage and obsolescence.

 

20.1.3   Matters Not Covered/Licensee’s Indemnity.  RICOH shall have no liability or other obligations under this Section or otherwise with respect to any suit, claim or proceeding brought against LICENSEE to the extent the alleged infringement arises from (a) the Licensed Product without regard to the Printhead; (b) an assembly wherein the Printhead is only a part thereof except to the extent that the suit, claim or proceeding arises solely from the Printhead; (c) modification of the Printhead as originally supplied by RICOH except as agreed to by the parties and contemplated by this Agreement; (d) the use, without regard to the Printhead, of an item (e.g., equipment, apparatus, ink or software) not provided by RICOH;  and (e) any marketing sale or use of the Printhead after LICENSEE receives notice of an alleged infringement.  Licensee hereby indemnifies RICOH against any loss or liability to the extent arising from a claim of infringement resulting from any of the matters described in (a) through (e) of this Section 20.1.3, provided however, that RICOH (a) promptly notifies LICENSEE  in writing, of such suit, claim or proceeding, (b) gives LICENSEE full information and assistance

 

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required to defend such suit, claim or proceeding, and (c) allows LICENSEE at LICENSEE’s expense sole direction and control over the defense and/or settlement of any such claim, suit or proceeding.

 

20.2   Indemnification by Licensee.

 

20.2.1  Manufacturing, Marketing and Distribution of Licensed Products.  LICENSEE acknowledges and agrees that LICENSEE is responsible for the manufacturing, use, maintenance, sale and other distribution and maintenance of the Licensed Products.  At its own expense, LICENSEE shall (a) defend and indemnify RICOH from and against any claims, suits or actions, alleging liability arising from or related to the manufacturing, use, maintenance, sale and other distribution and maintenance of the Licensed Products, except to the extent that such claim, suit, or action arises from the manufacturing, use, maintenance, sale and other distribution and maintenance of the Printhead unless such claim, suit, or action is the result of any modification of the Printhead by LICENSEE not contemplated by this Agreement and agreed to by the parties in which case LICENSEE shall have the duty to defend and indemnify RICOH as is set forth in this Section 20; and (b) pay any damages, costs and expenses (including reasonable attorney’s fees) and other sums which may be assessed or may become payable under any final decree or judgment in any such claim, suit or action or under any settlement thereof.

 

20.2.2     Infringement.  LICENSEE shall indemnify, defend and hold RICOH harmless  from and against any and all suits, claims or proceedings brought against RICOH alleging, and any and all damages, liabilities, costs and expenses (including but not limited to attorneys’ fees) incurred by RICOH as a result of any judgment or adjudication against RICOH in which it is determined that any Licensed Product, or any modifications made by LICENSEE to the Printhead as received from RICOH and not contemplated by this Agreement, or the RICOH Technical Information infringes any patent, copyright, mask work, trade secret or other proprietary right of any third party, provided that RICOH (a) notifies Licensee in writing promptly upon learning of any such claim and tenders to Licensee the opportunity to defend or settle such claim at LICENSEE’s expense, (b) cooperates with LICENSEE, at LICENSEE’s expense, in defending or settling such a claim, and (c) allows LICENSEE at LICENSEE’s expense sole direction and control over the defense and/or settlement of any such claim, suit or proceeding.

 

20.2.3 Liability.  THIS ARTICLE 20 STATES THE ENTIRE LIABILITY OF A PARTY FOR INTELLECTUAL PROPERTY INFRINGEMENT OR AN ALLEGATION THEREOF AND CONSTITUTES THE OTHER PARTY’S SOLE AND EXCLUSIVE REMEDY.  IN NO EVENT SHALL A PARTY BE LIABLE FOR ANY INCIDENTAL, INDIRECT, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES (INCLUDING, WITHOUT LIMITATION, INCREASED DAMAGES UNDER 35 U.S.C. §284) ARISING OUT OF OR RELATING TO INFRINGEMENT OR AN ALLEGATION THEREOF.

 

21.      TERMINATION/CANCELLATION

 

21.1   This Agreement may be cancelled by either party at any time if the other party has substantially breached any material provision contained in this Agreement as finally determined by the dispute resolution processes identified in Article 24. Notwithstanding, RICOH shall have the right to cancel this Agreement if LICENSEE fails to cure a breach of an undisputed payment within thirty (30) days of the breach. In no event shall the shareholders, directors, officers or agents of either party be liable for the breach of this

 

13

 

Agreement; the only remedies for any such breach being the right to cancel the Agreement and pursue a claim for damages against the other contracting party.

 

21.2  If either party petitions for reorganization under the Bankruptcy Act or is adjudicated a Bankrupt, or if a receiver is appointed for either party’s business or if either party makes an assignment for the benefit of creditors or if an involuntary bankruptcy petition is brought against either party and has not been discharged within thirty (30) days of date brought and cannot perform its obligations pursuant to this Agreement, then the other party shall, without further notice, have the immediate right to terminate this Agreement.

 

21.3    Cancellation of this Agreement by either party shall be without prejudice to any other remedies such party may have.

 

21.4    Except in the event of an uncured RICOH breach, in the event that either party cancels this Agreement pursuant to this Article and in addition to any other remedies available to such party, LICENSEE shall be obligated to pay for all RICOH Printheads, and may be required to accept delivery of and pay for all Printheads that are on order as of the date of cancellation.

 

22.          GOVERNING LAW

 

22.1   This Agreement and its validity, construction, and performance, and all of the rights and duties in connection herewith, shall be governed by and construed under the laws of the State of Delaware, without regard to principles of conflicts of law.

 

23.          OTHER COMPLIANCE

 

Without limiting the generality of the parties’ legal compliance obligations, the parties acknowledge applicable European Union (EU) directives including Restriction on Use of Certain Hazardous Substances (RoHS) and related to Registration, Evaluation, Authorization and Restriction on Chemical Substances (REACH).  RICOH and the Printheads comply with all such regulations, except where applicable exemptions exist.  LICENSEE agrees that it will put only compliant Printheads (as integrated into the Licensed Product) purchased hereunder on the market in EU countries, taking into account any applicable exceptions.

 

24.    ARBITRATION; GOVERNING LAW; COSTS & ATTORNEYS’ FEES.

 

24.1  Arbitrable Matters. Any controversy or claim arising out of or relating in any way to this Agreement or its breach, but excluding matters (i) relating to validity, enforceability or infringement of patents, or (ii) for which injunctive or equitable relief is sought by a party to enforce a term hereof, in all cases if not otherwise settled by the parties, shall be finally settled by binding, expedited arbitration in accordance with the Arbitration Rules of the International Chamber of Commerce.  In the event that the Arbitration Rules of the International Chamber of Commerce do not cover a question arising during the arbitration, then Article 24.4 hereof shall apply.

 

24.2   Process/Situs/Power of Arbitrator.  A party shall commence an arbitration proceeding by giving written notice of the other party, which notice shall also designate the matters to be arbitrated, in accordance with the Arbitration Rules of the International Chamber of Commerce. The arbitration proceedings shall be conducted in (and, with respect to such arbitration only, the parties consent to personal jurisdiction and venue in)

 

14

 

New York City.  The arbitration shall be carried on by a single arbitrator selected in accordance with the Arbitration Rules of the International Chamber of Commerce, and all hearings shall be before and transcribed by a certified court reporter certified in the jurisdiction in which the arbitration is pending. The arbitration shall be conducted entirely in the English language. Until a determination hereunder, the parties shall not cease to perform under this Agreement, and shall share the payment of the expenses of the arbitrator and the court reporter. The arbitrator shall have no power or jurisdiction to grant any party any remedy or relief inconsistent with the terms of this Agreement. The arbitrator shall have the power and jurisdiction to determine what issues are arbitrable under this Agreement.

 

24.3   Arbitrator’s Award; Effect. The arbitrator’s award shall be in writing, and shall include detailed Findings of Fact and Conclusions of Law. The arbitrator’s award shall be rendered within sixty (60) days after the conclusion of the arbitration proceedings (i.e., after the matter is deemed submitted to the arbitrator). Judgment upon the arbitration award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitration award shall have the same force and effect as if the award and decision were made and entered by a trial court (e.g., Federal District Court). Any award or judgment shall include reasonable attorneys’ fees to the prevailing party.

 

24.4   Governing Law. For purposes of arbitration, this Agreement and its validity, construction, and performance, and all of the rights, duties and obligations of the parties undertaken hereunder and in connection herewith, shall be governed by and construed under the laws of the State of Delaware, without regard to principles of conflicts of law or rules of discovery or the equivalent.

 

24.5 Attorneys’ Fees, Costs. In any suit, action, arbitration or other proceeding between the parties relating in whole or in part to this Agreement, the prevailing party shall be entitled to recover (in addition to any other relief awarded or granted) its reasonable costs and expenses (including attorneys’ fees) incurred in the proceeding.

 

25.          GENERAL PROVISIONS

 

25.1   Attorneys’ Fees, Costs.  In any suit, action, arbitration or other proceeding between the parties relating in whole or in part to this Agreement, the prevailing party shall be entitled to recover (in addition to any other relief awarded or granted) its reasonable costs and expenses (including attorneys’ fees) incurred in the proceeding.

 

25.2     Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  Neither party shall assign this Agreement or any rights or duties hereunder without the advance written consent of the other party, which consent shall not be unreasonably withheld.  Any assignment or purported assignment to which written consent is not given shall be void.

 

25.3     Notices.  All notices, writings, or documents for delivery by either party to the other shall be deemed sufficiently given if delivered  (a) personally, (b) by an internationally recognized overnight courier; (c) via PDF or facsimile transmission with confirmation by mail; or (d) sent by registered mail (postage prepaid), and if addressed to the party at the addresses set out below.  Any notice so given shall be deemed to have been received on the date on which it was delivered, or the date on which it was transmitted if by facsimile or PDF, or on the fifth (5th) business day following the day of mailing thereof if by registered mail.

 

15

 

	
LICENSEE
    	
 
    	
RICOH
    
	
Address:
    	
2   Holtzman Street,

Science   Park,
   Rehovot, Israel
    	
 
    	
Address:
    	
2390-A   Ward Avenue
   Simi Valley, CA 93065
    
	
Attention:
    	
Rami   Strul
    	
 
    	
Attention:
    	
Joseph   Ryan
    
	
Telephone:
    	
+972-8-9314342
    	
 
    	
Telephone:
    	
+1-805-578-4117
    
	
Facsimile:
    	
+972-8-9314315
    	
 
    	
Facsimile:
    	
+1-805-578-4299
    
	
Email:
    	
ramis@objet.co.il
    	
 
    	
Email:
    	
joseph.ryan@rpsa.ricoh.com
    
							

 

25.4  Section Headings.  The section headings in this Agreement are for reference purposes only, and shall not held to explain, modify or aid in the interpretation or construction of the provisions hereof.

 

25.5   Non-Waiver of Default.  Any waiver by either party of the breach or default of any of the terms or conditions of this Agreement by the other party contemporaneous or subsequent breach or default, whether the same as or similar to will not be considered as a continuing waiver or a waiver of any other prior, or different from, the breach or default waived.

 

25.6  Invalidity/Enforceability.  If any term or provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby, and each term and provision shall be valid and enforceable to the fullest extent permitted by law.

 

25.7  No Agency.  Nothing contained in this Agreement shall be construed or deemed hereby to create a principal/agent relationship between the parties nor any form of partnership or joint venture. RICOH and Licensee each acknowledge and agree that they are at all times and for all purposes hereunder independent contractors and that neither of them is authorized to take any action in the name of or on behalf of the other and that neither shall do so.

 

25.8  Export Laws and Regulations. Each party will comply with, and neither party shall commit any act or request the other party to commit any act which would violate either, the letter and/or spirit of the export control laws or regulations of the United States, Europe, or other applicable export control laws, rules or regulations, and neither party shall fail to take any action reasonable within its capacity to ensure compliance with such laws, rules or regulations, as applicable.

 

Each party represents and warrants that it shall not, directly or indirectly, export, re-export, or transship Printhead(s), technology or software (i) in violation of any applicable U.S. export control laws and regulations or applicable export control laws promulgated and administered by the government of any country having jurisdiction over the parties or the transaction(s) contemplated herein and (ii) for the purposes of disturbing international peace and security.

 

RICOH shall have the right to refuse to accept LICENSEE’s orders for Printheads or to deliver Printheads to fulfill any previously accepted order from LICENSEE, if RICOH determines and notifies LICENSEE, in good faith, that such proposed sale or other disposition of the Printhead(s) poses an unreasonable risk of (i) violation of any applicable export control law or regulation or (ii) disturbing international peace and security.

 

16

 

In the event RICOH refuses to deliver Printheads to fulfill previously accepted orders from LICENSEE as set forth in the paragraph immediately preceding, or the necessary export or re-export authorizations are not obtained within a reasonable period of time, RICOH, at its option, may cancel the order or contract, without penalty.

 

LICENSEE shall not use, sell, transfer or otherwise make available any goods/technology to be supplied by RICOH and/or its information under this Agreement to any firm(s), any corporation(s), and/or any person(s) that are related to the research and development of unlawful manufacturing and use of ordinary, nuclear, chemical, biological weapons and/or missile technology.

 

25.9   Force Majeure.  RICOH shall not be liable for delays in delivery or failure to manufacture due to causes beyond its reasonable control, including acts of God, acts or omissions of LICENSEE, acts or omissions of civil or military authority, fire, strikes, flood, epidemics, quarantine, restrictions, riots, war, terrorist acts or delays in transportation, inability to obtain necessary labor, materials or manufacturing facilities, or due to other causes beyond its reasonable control.  In the event of any such delay, the delivery date shall be extended for a period equal to the duration of the delay.

 

25.10 Modifications.  No alteration, amendment, variation, supplementation, modification or waiver of any of the terms or provisions of this Agreement shall be binding or effective for any purpose unless made pursuant to an instrument in writing signed by authorized representatives of both parties; provided, however, that waiver by either party hereto of compliance by the other party with any provision hereof or of any breach or default by such other party need be signed only by the party waiving such provision, breach or default.

 

25.11   Limitation of Liability.   IN NO EVENT SHALL A PARTY BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL OREXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION ANY LOSS OF REVENUES OR PROFITS OR LOSS OF USE OR DATA, ARISING OUT OF OR CONNECTED IN ANY WAY WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY IT, EXCEPT AS SET FORTH IN SECTION 19.6 ABOVE.

 

25.12  Counterparts.  This Agreement may be executed in a number of identical counterparts each of which for all purposes shall be deemed an executed original.  This Agreement may also be executed separately by all or any of the parties and all of such Agreements shall collectively be deemed as an original executed Agreement by all of the parties.

 

25.13   Entire Agreement.  This Agreement, including Appendices A, B, and C sets forth the entire Agreement and understanding between the parties concerning the subject matter hereof and supersedes all prior and contemporaneous communications and agreements between them, written or oral, and is intended to be a complete and exclusive statement of the terms of the agreement between them.  The parties acknowledge that they have not relied upon any representation whatsoever of the other which is not contained in this Agreement.

 

25.14  In any suit, action, or other proceeding between the parties relating in whole or in part to this Agreement, the prevailing party shall be entitled to recover (in addition to any other relief awarded or granted) its reasonable costs and expenses (including attorneys’ fees) incurred in the proceeding.

 

17

 

25.15  Except with respect to the Printheads, RICOH gives no guarantees and is under no obligation to ensure that the Licensed Product will successfully comply with any regulatory standards.

 

25.16 LICENSEE and RICOH agree to abide by all federal, state and local laws and standards applicable to this Agreement and the transactions contemplated hereunder.

 

25.17 RICOH and LICENSEE each acknowledge that neither of them is authorized to take any action in the name of or on behalf of the other.

 

25.18  Each of the parties hereto are separate and independent legal entities. Nothing herein contained shall be construed or deemed hereby to create a principal/agent relationship between the parties nor any form of partnership or joint venture.

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in duplicate by their duly authorized representatives as of the date(s) below written.

 

 

	
RICOH PRINTING SYSTEMS AMERICA, INC.
    	
 
    	
OBJET GEOMETRIES LTD.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Hiroyuki Kajiyama
    	
 
    	
By:
    	
/s/ David Reis
    
	
 
    	
(Authorized Signature)
    	
 
    	
 
    	
(Authorized Signature)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Hiroyuki Kajiyama
    	
 
    	
Name:
    	
David Reis
    
	
 
    	
(Type or Print)
    	
 
    	
 
    	
(Type or Print)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
President & CEO
    	
 
    	
Title:
    	
CEO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
May 5, 2011
    	
 
    	
Date:
    	
4.5.2011
    

 

18

 

APPENDIX A

 

LICENSED PRODUCTS & FIELDS OF USE

 

The LICENSED PRODUCT shall be a fully integrated, self-contained, stand-alone machine, system or apparatus for producing three-dimensional objects from the accumulation of overlaid droplets of a curable medium, liquid at room temperature, including at least one PRINTHEAD, provided, however, a machine, system or apparatus shall not be excluded from meeting the “fully integrated, self-contained, stand-alone” limitation of the term “LICENSED PRODUCT” solely because the source of the data input is external thereto and not part thereof.

 

The FIELD OF USE shall mean and include only the producing of solid (including wholly or partially hollow), three-dimensional objects capable of being free-standing, as typically produced in the field of rapid prototyping and manufacturing, such as models, tools and prototypes, including the accumulation of at least two (2) consecutive layers of overlaid droplets of a curable medium liquid at room temperature. For avoidance of doubt, Field of Use does not include deposition of droplets onto a substrate to which droplets must remain bonded, including, for example, depositing layers onto printed circuit boards, integrated circuits, financial instruments, labels, textiles, and business forms.

 

 

APPENDIX B

 

SPECIFICATIONS for Gen3E1 and Gen3E3 Printheads

 

The Specifications shall be as agreed to in writing by the parties from time to time. Until replaced by the parties, the Specifications shall be those specifications for the Gen3E1 and Gen3E3 printheads last supplied by RICOH to LICENSEE prior to the date hereof. 

 

2

 

APPENDIX C

 

PRICING [***]

 

1. Pricing. RPSA agrees to sell to LICENSEE, and LICENSEE agrees to purchase the Gen3E1 and Gen3E3 Printheads in accordance with the pricing and the terms and conditions stated below:

 

Gen3E1 96 Channel Printhead

 

	
Monthly Purchase Volume
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
P/N 337931-002
    	
 
    	
$
    	
[***]
    	
 
    	
$
    	
[***]
    	
 
    	
$
    	
[***]
    	
 
    	
$
    	
[***]
    	
 
    	
$
    	
[***]
    	
 
    
																	

 

	
Monthly Purchase Volume
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
P/N 337931-002
    	
 
    	
$
    	
[***]
    	
 
    	
$
    	
[***]
    	
 
    	
$
    	
[***]
    	
 
    	
$
    	
[***]
    	
 
    	
$
    	
[***]
    	
 
    
																	

 

	
Monthly Purchase
   Volume
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
P/N 337931-002
    	
 
    	
$
    	
[***]
    	
 
    	
$
    	
[***]
    	
 
    	
$
    	
[***]
    	
 
    
											

 

·                  Notwithstanding the pricing in the above table, the pricing for 2011 is based upon a yearly purchase volume commitment of [***] Gen3E1 Printheads at the price of $[***] per Printhead.

 

·                  Non-wet coating option is an additional $[***] per Gen3E1 Printhead.

 

Gen3E3 192 Channel Printhead

 

	
Monthly Purchase Volume
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
P/N 338516-001
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
													

 

·                  Notwithstanding the pricing in the above table, the pricing for 2011 is based upon a yearly purchase volume commitment of [***] Gen3E3 Printheads at the price of $[***] per Printhead.

 

·                  Non-wet coating option is an additional $[***]per Gen3E3 Printhead.

 

The pricing schedule for subsequent years shall be based upon the yearly purchase volume commitment from LICENSEE and submitted to RICOH ninety (90) days prior to the expiration of the current year. The monthly purchase volume schedule above shall be used to determine pricing for subsequent years.

 

Monthly purchase volumes are part number specific and cannot be combined for additional discounts.

 

·                  All pricing is in U.S. Dollars, FOB RICOH’s dock, Simi Valley, CA 93065

 

***CONFIDENTIAL TREATMENT REQUESTED

 

3

 

2.    [***]

 

	
[***]
    	
 
    	
2011
    	
 
    	
2012
    	
 
    	
2013 and
   beyond
    	
 
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    

 

***CONFIDENTIAL TREATMENT REQUESTED

 

4

 

APPENDIX D

 

FINANCIAL INFORMATION

 

Financial Information

(in 000’s)

 

	
 
    	
 
    	
FY2008
    	
 
    	
FY2009
    	
 
    	
FY2010
    
	
 
    	
 
    	
Audited
    	
 
    	
Audited
    	
 
    	
Unaudited
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   and Equivalents
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trade   Accts Receivable
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Inventory
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Current Assets
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Trade Accts Payable
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Current Liabilities
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shareholder/Bank   Loans
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Liabilities
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Net Sales
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Pretax Income
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

5

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